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Your $3 Trillion Credit Card Application Has Been Approved
We dare anyone to go to the bank and try getting a new credit card (with a limit anywhere between $50 and $5 trillion) by presenting this personal budget.1
1Bank of China/Japan Excluded. Possession of dollar printing press is grounds for disqualification.
Necessary and sufficient, if "credit card issuance = fail" chart compliments of energyecon
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Tyler, you ain't seen nothing yet in terms of printing. To offset the leverage of the derivatives, consumer, corporate and government debt outstanding, if you want inflation, the way to do it is to start a hot war. Check out the inflation the US got due to the Korean War in the 50's, and Vietnam in the 60's.
The reason is you are diverting productive capacity into the war effort (which reduce supply curve) and printing money to buy goods and services with no productive value (which does not boost the supply curve). Summers and Rahm might decide a hot war in Afganistan or wherever is the best recipe to deleverage. Maybe also devaluing the USD by fixing it at $2,000 for 1 oz of gold, and seizing all gold held inside the US for $900 per oz.
War is the only industry we have left (besides "consumption"). And "they" don't have to seize gold - "they" control that market already. Think SLP.
Jonathaaaaaaaaan!
Now I feel better. Go Houston! Whoo!
RAND Corporation published a study to DoD in late Fall 2008 suggesting a hot war in order to revive the economy. RAND -- publishing batshit-insane material since 1948. Some things never change.
link?
The study is unpublished. The existence of the study was leaked in the Chinese press.
http://www.liveleak.com/view?i=b55_1225399574
Ah, well then it must be true. I mean, it's been on the Intertubes and the in the Chinese press. That's like an imprimatur from Jesus himself.
If you read the other crap which RAND has published ("how nuclear war might start", http://www.rand.org/pubs/notes/N2614/ ) in conjunction with the DoD "Civilian Expeditianary Workforce" 1404.10 (civilan contractor draft) regulations published in Jan 2009 none of this is surprising.
http://www.army.com/news2/item/4764
http://www.dtic.mil/whs/directives/corres/pdf/140410p.pdf
If nothing else PM, you should be commended for backing up your statements with some sort of evidence whether it's deemed valid or not by the readers. Blanket BS statements are annoying, but you my friend always seemed to be prepared to support what you say. Thank you
I actually believe this could be a real proposal (and could theoretically be a solution). China would make the only reasonable target. Enemy would need to be big enough to require the full effort fo the economy and for citizens to feel a real sense of danger to their lives and that of their conscripted children.
However, the adversary must not have too strong a nuclear arsenal or you risk blowing up the world. With current intercept technology, it is feasible to have a limited nuclear war with an opponent with only a couple dozen nuclear missles.
Russia has too large a nuclear arsenal to risk a war (and too weak a conventional army)
Japan is too weak to provide a long-term conflict (and has no nuclear weapons)
North Korea could provide a long-term conventional conflict, but the size would not mobilize the entire US economy.
That leaves us with Europe or China. Care to guess who's submarine bases the US has been mapping?
I don't think we will be attacking China. Do we even have the industrial base to built our own weapons without imports??? If we did attack China, all of our retail stores (electronics in particular), would be virtually empty. No computers, no TVs,...... We don't manufacture much anymore.....
The cause of it was out of control government spending, financed by the German central bank printing press.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
In fact, the Nazis used so called "Mefo bills (http://en.wikipedia.org/wiki/Mefo_bills) to delay inflationary pressure for a good while and to conceal the true deficit spending. Off-balance-sheet accounting has a long history...
Is that green line a shoot?
I think it is... the first bonefide sighting of one of them there green shoots we've been hearing so much about... I think that we need to name it after you "Anon" :-)
short the stock market heavy
those islands on indexes say - more pain for stupid bulls.
have you shorted heavy?
TD thanks for posting this. This illustrates exactly why sustained deflation leads to sovereign default.
Print = Global USD Exodus = Hyperinflation
Deflation = Default = Hyperinflation
Bernanke is trapped.
The country is utterly broke yet Obama is giving Brazil billions for OFFSHORE OIL DRILLING while simultaneously opposing it for the US.
http://online.wsj.com/article/SB10001424052970203863204574346610120524166.html
You just can't make this stuff up.
My thought when I read about the Brazil oil drilling deal was that it was a deal that benefits some bank such as GS. Brazil has good credit, so why not get the deal with maybe some help from Uncle Sam?
at first I thought that the wsj article was a spoof....wow, i cannot believe the hypocricy of obama and cos. as the "green" energy, "green" environmentalist gurus yet they go along for offshore in brazil. i guess there is a big difference in the potential environmental hazards to the offshore of brazil versus offshore of, say, New Jersey.
reminds me of the old (and true, I believe) story in or about the seventies when Sen. Ted Kennedy was opposed to offshore oil exploration. During that time, some photographers caught him on a boat with a lady and they were either nude or close to it. Fast forward to the Senate floor where a Southern Senator (may have been Fritz Hollings, not sure) made a statement to the effect that "...it appears that the Senator from Massachusetts may have changed his mind about offshore drilling."
You are missing the US "green" angle.
Brazil sugar cane ethanol production threatens the US corn-based ethanol initiative. The US gov is deperately trying to get their own "self-sustainable" green program off the ground which they cannot do with Brazil undercutting their heavily subsidized corn crops.
This loan for off-shore drilling is the US buying time to advance their own program, and to placate Brazil over the ethanol import tariff put in last year as part of their $289B program.
http://www.icis.com/Articles/2008/05/15/9124273/us-congress-extends-etha...
As far as the hypocrisy, are you really surprised?
Or to prepare us for Sugar the new Oil...watch it spike!
icarus...thank you for the insight on the ethanol angle (i don't follow that area at all).
That was Howell Heflin, the great southern Democrat senator from Alabama, who made the crack at Teddy.
Yeah it's nutty. We are living in 1984. I just heard today that Virginia needs like $1.3 billion to cover their budget shortfall.
Now , I am not a highly paid economic theorist, but WHY THE FUCK ARE WE GIVING MONEY TO BRAZIL WHEN THE STATES ARE BROKE?
PM asks:
WHY THE FUCK ARE WE GIVING MONEY TO BRAZIL WHEN THE STATES ARE BROKE?
To help a brotha out. That's why.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.V5sgGzdsQY
"MARK IT ZERO, DUDE"
http://pogoarchives.org/m/ep/doi-looks-the-other-way-19950401.pdf
Clinton's biggest Folly...Killed Royalties from drilling!
Get ready for hyperdeflation. That's what you'll have if the derivatives industry explodes.
You have to admit that it would be an opportunity of a lifetime to witness a supernova up close.
Just thinking about this short gives any proud bear some serious wood.
OT:
A handful of other fund groups spent smaller amounts to shape policy: most notably Pacific Investment Management Co. of Newport Beach, Calif. According to its filing, it spent $30,000 to influence policy on things such as the tax treatment of exchange traded notes — vehicles which act similarly to ETFs, but are debt backed by the issuer — and issues related to financial regulatory reform including commodities speculation.
PIMCO only spent $30,000 in Q2 to lobby... I guess when you have a direct line to the Fed and Treasury you don't need the Congress... hahaha
http://tinyurl.com/o5xeow Almost choked on my dinner watching my favorite comedy channel -CNBC.. Discussing hope and the homeowner! Hmmm I don't know where the hope could be coming from? F'n unreal... ff to 1:45..enjoy
in a stunning twist of fate, the show known as "dennis i am hopeful fella kneale" has gone on hiatus....
http://www.cnbc.com/id/15840232?video=1215705295&play=1
At the risk of breaking the 3rd rule, I think he's moonlighting:
http://www.youtube.com/watch?v=3KANI2dpXLw
That is amazing he actually used the word hiatus... don't they usually keep the time slot open with re-runs of that person's old shows for people that they really want back. I don't remember Jay Leno going into hiatus when he is off on a 2 week vacation. Dennis sounds a little concerned about this hiatus. I think he 'jumped the shark' when he started attacking bloggers.
Heh, heh....
The Plutocrats at the Fed and Treasury Dept. have successfully maneuvered interest rates to remain pinned near 40-year lows, so that Uncle Sam can borrow ad infinitum at nearly zero cost.
Today's PPI numbers further guarantee that unlimited credit lines approaching the trillions are virtually guaranteed, as inflation is non-existent according to the Politburo data.
Thanks RT for your great image inputs. See AXP up on higher delinq's today. Ramp it up
LOL - Ben "making it rain". Ya think he took personal lessons in Vegas from Packman or any of his thug buddies? He sure is good at it.
Yes, a plutocracy. And on a unimaginable scale. I'm beginning to think of it as Totalitarian Capitalism. People are looking to old models, but I don't think we've ever seen this before. The British Imperialists were little wankers compared to these folks. The richest 5% have never had this concentration of international power.
I don't see the problem. Just go to the Bank of China - they will approve you right away!
We are nearing our Weimar moment.
Germany had inflation, then hyperinflation, over '19-'23.
The cause of it was out of control government spending, financed by the German central bank printing press.
In '18, Germany's budget deficit was 33%; in '19 it was 70%.
In '10, our budget deficit will be right between those two numbers, and growing.
...another inflationist hoping for a miracle...
Don't hold your breath.
When governments print money not justified by
economic growth inflation results. The U.S. response has been to print more money to solve every problem
in the Credit Crisis. If there are bigger problems,
they will not just sit there and do nothing. They
will print much more money and create even more
inflation. A major crisis would quickly turns us
into another Weimar Republic or Zimbabwe.
haha great thread title
So I just heard that the dollar is collapsing? Great source...anybody care to confirm this? Loaded Shorts across the globe?
This is all that is out tonight... but just future projections from Tyler's friend PIMCO (just kidding)...
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeD0JMxdEA_c
Thanks...hmm...let me go do some snooping at the FED...;-)
FOFOA has a target of by end of October 09 for complete meltdown initiation including dollar collapse.
This lines up with my timeline as well, but it's possible we see a temporary hard reversal (dollar rally) if there is another round of global deleveraging prior to the Black Currency Swan getting sucked into the engine.
Wow..your brilliant...still snooping..w/c in later...:^)
Check out these
The Waterfall Effect
http://fofoa.blogspot.com/2009/08/waterfall-effect.html
How ALL Systems Can Collapse Overnight
http://www.scribd.com/doc/17880556/How-ALL-Systems-Can-Collapse-Overnigh...
All Paper Money Is Still A Short Position on Gold
http://fofoa.blogspot.com/2009/03/all-paper-is-still-short-position-on.html
X
Forgot to add "especially against emerging market currencies"
yea that's a lot of money
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
where is all this money going? straight into the snp?
I think that if we fudge the Loan-to-Value just a little bit... doctor up our financials by not making the curvature of the graph lines so steep (who drew that anyway)... and offer California, Arizona, Michigan, and Florida as collateral.... then I don't see any problems in China underwriting this loan.
You had me and China both until you threw in Michigan.
But it was an easy way to get rid of those car companies we own... we don't have to tell China they might not be the best collateral though... in fact don't tell China that they might have to put money into them instead of expecting a positive return... its our secret... shhhh...
They don't want those states...andreas fault and florida national bird is mosquito! lol
Maybe then New York and Washington, DC... so in case of default, America's problems would be over... and China's would begin :-)
Think like a Chinaman??? Clue, our 51st state and has all the oil we will ever need!
Perfect... and then Palin will go with it also :-)
errrrrrrrrr wrong answer..second clue...who is our lil bitch? no its not me ...lol
Oops... my bad... you meant Iraq... I clearly have a counting problem and don't know how I made it past the Captcha... Iraq would work perfectly so we could get rid of one war and that pesky Al Qaeda. Do you think we could convince China that poppies are beautiful flowers that Chinese women would enjoy... and maybe get rid of Afghanistan also.
CANADA is a nuclear power and fully armed unlike the
iraqis and afghanis that you have not been able
to tame in 6 years of trying. . . and a
decade of starvation before that.
Canada is Viet nam with snow and canadians actually
are more heavily armed than the gap toothed
idoits to our south.
Unlike america, we have not lost any wars and
kicked american butt back in 1812.
Dope is legal up here, down there being a dope
is mandatory.
If we offer Washington DC, Zero Hedge should keep The Loft and Columbia Heights for ourselves -- so make sure we put that in the contract. China can have the rest -- including all 535 Congress Critters and the rotting stench wafting across the Potomac.
Perfect... it sounds like we are all in agreement of what goes and what stays... so lets send Clinton over to make the deal... Bill Clinton that is... he has the stongest connections in China via his charity... so it should be a slam dunk... Hillary will be steaming mad though... hope she doesn't blow up again at another college student during a news conference in third world country...
LoL..too bad she has been marginalized...
she hasn't been marginalized, oh no. never underestimate her and her hubby....she is scheming and planning every moment of the day...i would never count her out
I cheer for her success in what is typically a man's world... but she has this little part of her that I percieve as 'low esteem' that bursts forth at all the wrong moments... you sense it and I wish she could overcome it. I think if she had left Bill after the affair happened then this would not be as big of an issue as it is today... she would have regained her dignity... but since she didn't she is constantly struggling with her own perceptions of herself... and unfortunately the college student in Africa was the latest recipient.
Love your site. I like the math question test. Cute
You will change your tune, when the black sedan starts to follow you around...lol
Yeah, well, they were following me as I was walking down the street one evening...I walked over to their car and asked them if they "had a problem." There was no reply, they just drove off. ??
The difference between productive class and governing/banking class?
(1) We come from the sunrise of civilization and pioneer ways to increase our collective means and comfort; they are in the sunset as collective predator.
(2) We come naked or nearly so, in trade clothes or overalls, connected to the earth and its bounty; they wear unspotted finery and recoil from any discomfiture.
(3) We ask nothing but to be allowed to make union with the earth to produce physical product which satisfies universal want, giving away the excess or by charity; they steal all they can and never give anything to anybody. Their thirst is unquenchable and all consuming.
(4) They despise us; we can only pity them and the future if they prevail.
"If you cannot enslave an individual by virtue of his own debts then enslave the entire population by casting their government into debt." - Anonymous, 2009
Wow...too bad your Annon...good post..
Like it... you should register on ZH... and claim it with your name.
But the bank would say "This is good news, Q2 estimates, beat expectations....your approved"
Wow--have to agree with MN--bye cali. This country is still into the waterfall without the barrel as the foreclosure rate continues to bleed steady at 343k monthly--Im looking for 4,120,000 for yr tally.
UE is still moving along between 290k--324k per month--and I am going to purchase the T-K4-SP tankless Flash system which gets unlimited mileage even when empty-extension cord not included-at least I can power up my CB.
There's a price for that loan, maybe L+1500 plus warrants. The Fed/Treas gonna have fun holding that ground.
We are only missing another illusion to securitize, my suggestion is to use Social Security.
From what I understand, there really is no account with any savings in it despite the itemized bill on our paychecks. Let's just pretend, like we have done with all the other derivatives, that there really is a balance (part of the trillions in derivatives).
I have paid in a fortune and will never see a dime, but would love to borrow against my SS balance (you know, those waste of paper newsletters you get that state what you should receive from Social Security when you retire)?
I am actually serious and not joking, at least the balance indicates how much each individual has put in so it is equitable - hopefully BB and TG are reading this. We could stimulate spending and kick the can down the road another year or so. As Bush said, it is a house of cards and there is no magic wand - only buying time.
From what I understand, there really is no account with any savings in it...
Apocalypse: I could very well be wrong, but over the years I seem to recall a number of items that I have read (i think Samuelson and Allan Sloan at Newsweek have written about this) that have suggested that the fica money from our paychecks is turned over to Treasury, which issues treasury confetti, and hands that over to Soc. Security.
Yes, I thought I was being the gentlemen by presenting it softly - I wouldn't want to be responsible for scaring any old folks.
Look at this interesting article (see FDIC section), the FDIC is the same - everything appears to be a ponzi scheme and the only important aspect is cash flow:
http://www.marketoracle.co.uk/Article12792.html
Lets get some log charts up in this biznyatch
Google: Operation NorthWoods. Be on Guard.
yes, Apocolypse you are correct. There is no social security trust fund, at least not in the traditional sense. It is an accounting entry that would be considered fraud if done in the private sector. Basically, the funds collected from SS taxes are paid to Treasury and become general operating funds. Treasury issues bonds to the trust fund. So the trust fund is bonds, which means for SS trust to redeem the bonds, treasury will have to issue bonds to someone else. It is set up ECACTLY like enron's SPE's, where we borrow from ourelves and only show the asset side of the transaction on our balance sheet. We all know how that one worked out.
Back in July, Fed Governor Yellen said interest rates may stay at near 0% for years to come.
See: http://revolutionradio.org/2009/07/01/fed%E2%80%99s-yellen-says-interest...
Also, check out http://invetrics.com for the latest news bites and market timing signals (affected by interest rates).
Adjusting the chart for inflation would yield a less
dramatic, truer picture instead of beginning with the
apples and ending with the oranges every non-adjusted,
overly dramatic chart does, the longer the time frame
the greater the distortion. Firstly, the unit of account
begun with is plural units by the end, secondly, the store
of value(s) depicted has mostly leaked out thus the line
more describes the varying size of the magically
compounding hole, thirdly the medium of exchange is some
gypsy conjuring the dead from the antonym of a currency
that devolved into a psychic phenomena. That's why modern
bills are transparent and held up to the light, to
communicate with the spirit world from whence it sprang as
easingly as Pandora's Box, granting the deified authenticity in
which we trust.
Credere, to believe. A noninterest-bearing note sold at
no discount nor maturity. Increíble!
The picture that's worth a trillion dollars -- or two, or three...!
This looks awfully familiar...
http://nowandfutures.com/download/larouche_triple_curve.png