• Gold Standard I...
    07/24/2014 - 01:47
    There is confusion over what legal tender law does. It doesn't force merchants to accept dollars under threat of imprisonment. It attacks lender, by granting debtors a right to repay in dollars.

The Red Pill

Tyler Durden's picture

Bernanke The Sophist: The Deception Behind QE





Bernanke's legacy: a deceptive case for a failed policy.

Sophistry: the use of fallacious arguments, especially with the intention of deceiving. The Federal Reserve's core policy of quantitative easing (QE) is based on a deceptive but appealing argument voiced by former Fed Chair Ben Bernanke.

 
Tyler Durden's picture

A Dogmatic Slumber





There’s no question here about identifying the oppressors and the oppressed. There’s no conflict between the internal exercise of your freedom to think for yourself and your external behavior. There’s no omnipresent social media, no cacophony of commercial voices, no GPS chips, no algorithms that can predict your likes and dislikes better than you can yourself. It’s just faceless soldiers with AK-47’s trying to impose their will on Patrick Swayze’s external behavior. It’s a movie that would have made as much sense (more?) in 1784 as it did when released in 1984. Our world isn’t “Red Dawn,” it’s “Invasion of the Body Snatchers.” Control over our behaviors isn’t as much physical as it is mental, not so much externally imposed as it is internally embraced. If you’re reading this note, the problem is not that you are in a dogmatic slumber and need to be woken up. The problem is that you know it’s in your best economic interest to act as if you’re still asleep. In a world overrun by pod people, the big losers are the people who can’t fake their pod-ness and ultimately get outed by Donald Sutherland.

 
chumbawamba's picture

We Begin





The Matrix was a movie released on 33-11-999, or as more commonly formatted (in the USA), 3-31-1999.  In the 14 years since it's debut it has become one of the most influential cultural icons of any generation, not only here in America but throughout much of the globe.  Everyone, at least those ones in Western sphere societies, somehow, can readily identify with it.  I wonder why?

 
Tyler Durden's picture

Is The Collapse Of Cyprus Due To This Man?





Pinning the blame for the collapse of the Cypriot banking system (and the country itself) on the shoulders of one man may seem harsh but Laiki Bank's chief risk officer Dimitris Spanodimos represents the tip of the spear of mass delusion that encompasses most (if not all) of Europe. Cypriot banks had been swamped with deposits courtesy of their cozy relationship with Russia and this left them with, in Spanodimos' words, "comfortable liquidity and capital position to deepen selectively some highly profitable and highly promising client relationships." In short, they had so much excess that they had to invest it somewhere and given the regulators light tough (which gave the banks a clean bill of health through 2011), they bought Greek government debt and extending huge amounts of mortgage loans (in Greece and Cyprus). So, as the WSJ reports, while everyone else was purging, Spanadimos had swallowed the red pill and decided his banks' gorging on extremely risky investments was tolerable - until of course the EU pulled the plug with the haircuts from the Greek bailout. These losses, and the need for new capital, is why Cyprus needed a bailout - so who is to blame...

 
clokey's picture

Amusing: DealBreaker Says Whale Trade No Big Deal





 I used to like DealBreaker, I really did. Alas that was in my younger years before I made a (very) small name for myself and before I took the red pill offered to me by ZeroHedge's Tyler Durden. Now I realize that sarcastically apologizing for the nefarious character of the financial world is pretty much the same as just plain-old apologizing for it... except funnier. Case in point, here is an excerpt from an article published on DealBreaker a few hours ago entitled "Regulators Close Aquarium Door Behind Escaped Whale":

 
Tyler Durden's picture

Presenting The 'Indifference' Indicator...





Few would argue that markets are almost entirely apathetic to even the worst and most negative of headlines in this post-crisis world. As we noted earlier, it seems we are 'shell-shocked' at a 'recovery' that UBS describes as 'not exactly an uplifting experience' – global growth went straight from 'collapse' to 'mid cycle' without ever enjoying the healing properties normally associated with a one to two year recovery process. For economists, one interesting question is whether this 'new normal' is unduly influencing economic sentiment. We would somewhat expect traders/managers to be behaving in an increasingly agitated manner; jumping at sudden noises, overreacting to shifts in economic data and generally exhibiting signs of stress, economic hysteria, and volatility. In reality, both consumers and businesses have become quite blasé about the economy. Sentiment is actually a lot less volatile than the economic circumstances would normally suggest it should be, and so (via UBS) we present 'The Indifference Indicator' to track just how 'subdued' regions have become.

 
Tyler Durden's picture

Gallup Goes To Town On BLS Massagery





Whether it is a fringe-blog pointing out the statistical un-possibility (here and here), or a previously well-respected 'elite' pointing out the suspiciousness (here), most of the general public (or their media-based oracles) prefer not to swallow the red pill of reality with regard Friday's data SNAFU. However, given the political (and economic) consequence of a single-number, Gallup has decided to weigh in on reality as they note "even though the Household survey tends to be very volatile, this decline seems to lack face-validity, particularly after the prior month's numbers" as they analyse why the household results should be discounted heavily. Critically, they, like us, suggest the 'unemployment rate' needs to be replaced as a measure of joblessness, suggesting a far simpler (and more transparent) measure - Payroll-to-Population - would avoid the 'adjustments' and 'biases' that are inherent in the BLS's bafflement. The Gallup measure suggests, as one would perceive using common-sense, that the real jobs situation was essentially unchanged last month.

 
Tyler Durden's picture

Who Needs Global Trade When You Have Toner Cartridge





Confirming the dismal picture of advanced economy import and export declines we discussed yesterday, the following chart provides everything you need to know about the world's economic quagmire but were afraid to ask. Of course, all the time the central-printers of the world are willing to debauch themselves there will be momentum-chasing monkeys to maintain the blue-pill illusion of a healthy stock market as indicative of a healthy economy - but should you choose to swallow the red pill, this chart of a plunging global trade volume may raise anxiety levels a little above their current multi-year lows.

 
Tyler Durden's picture

CTRL+SPIN: Ben Bernanke Concludes The Fed Propaganda Tour





Today at 12:45pm will be the 4th and final lecture given by the CTRL+P spinmaster himself to young and easily impressionable GW students. The propaganda tour will conclude as Ben shares his views on the "The Aftermath of the Crisis" where we will most certainly learn that the primary consequence is a parabolically rising global balance sheet, where $7 trillion in excess liquidity has been dumped in the world in the past 5 years by the big 5 central banks. That and the fact that virtually all energy commodities are trading at or near all time records. We will likely also learn that while it is speculators' fault that gas is at an all time high for this time of year, it is not speculators fault that the S&P is at a 4 year high. In fact, we will learn a whole lotta stuff that those who took the red pill some time ago, may have forgotten. Watch it live below.

 
Tyler Durden's picture

The Iceland Financial Renaissance Miracle Continues





When it comes to the New Normal, there are just two precedents: complacent and doomed debt slaves, such as Greece, which continues to voluntarily hand over any and all of its real assets to the vampiric banking oligarchy in exchange for simply being the member of a doomed club, while trembling at constant threats of fire and brimstone if it dares to split away from its monetary parasites (and where unemployment rises by 3% in one quarter), or the rare success story such as Iceland, which showed the bankers a middle finger, took the red pill and disconnected from the globalization matrix. And while even Bloomberg recently extolled the virtues of the Iceland "case", which will likely be solitary until the entire ponzi scheme comes crashing down, we are heartened when we observe all incremental milestones of further economic and financial success by the one country that dared to call the banker bluff, and won. Such as this press release from the IMF.

 
Tyler Durden's picture

Things That Make You Go Hmmm - What The Red Pill Really Tells Us





"On March 14th Bear Stearns collapsed and the first real domino of the financial crisis (at lest as far as public recognition of the situation was concerned) had toppled. However, it wasn’t until September, as Lehman Brothers tottered on the brink of insolvency, that a group of highly influential bankers and politicians decided to take the red pill. The failure of Lehman Brothers was the catalyst that plunged the world deep into The Matrix - an alternate reality in which, everywhere you looked, things were happening that a mere 24 hours earlier, would have seemed unthinkable. We all know about the TARP, we remember wild swings in markets, plummeting oil and commodity prices, frantic deleveraging and nervous Central Bankers and politicians telling us that everything was going to be OK. But as the days and months have ticked by, the reality inside our own Matrix has become more and more skewed. Markets recovered, an eerie calm was gradually restored
and slowly things began to return to a semblance of normal. But what is normal in this new paradigm? Is it normal for the Fed to be buying 70% of all Treasuries? Well it certainly wasn’t until we took the red pill and entered The Matrix...It surely must be clear to anybody that, regardless of the fact that the unemployment situation has stopped deteriorating quite so rapidly and has even begun to show signs of improvement in places (‘green shoots’ anyone?), regardless of the fact that corporate results have actually been, for the most part, quite good and the S&P is trading on decent multiples and regardless of the fact that ‘core’ inflation apparently isn’t a problem - the real world inside The Matrix, the one many vested interests would rather we NOT focus on, is an altogether different story." Grant Williams

 
Tyler Durden's picture

Things That Make You Go Hmmm - What The Red Pill Tells Us





"On March 14th Bear Stearns collapsed and the first real domino of the financial crisis (at lest as far as public recognition of the situation was concerned) had toppled. However, it wasn’t until September, as Lehman Brothers tottered on the brink of insolvency, that a group of highly influential bankers and politicians decided to take the red pill. The failure of Lehman Brothers was the catalyst that plunged the world deep into The Matrix - an alternate reality in which, everywhere you looked, things were happening that a mere 24 hours earlier, would have seemed unthinkable. We all know about the TARP, we remember wild swings in markets, plummeting oil and commodity prices, frantic deleveraging and nervous Central Bankers and politicians telling us that everything was going to be OK. But as the days and months have ticked by, the reality inside our own Matrix has become more and more skewed. Markets recovered, an eerie calm was gradually restored
and slowly things began to return to a semblance of normal. But what is normal in this new paradigm? Is it normal for the Fed to be buying 70% of all Treasuries? Well it certainly wasn’t until we took the red pill and entered The Matrix...It surely must be clear to anybody that, regardless of the fact that the unemployment situation has stopped deteriorating quite so rapidly and has even begun to show signs of improvement in places (‘green shoots’ anyone?), regardless of the fact that corporate results have actually been, for the most part, quite good and the S&P is trading on decent multiples and regardless of the fact that ‘core’ inflation apparently isn’t a problem - the real world inside The Matrix, the one many vested interests would rather we NOT focus on, is an altogether different story." Grant Williams

 
Marla Singer's picture

Radio Zero: Jesus Took the Red Pill





...and we bet that was a trip and a half.  Radio Zero returns, ready to act in your preemptive self-defense to fend off the horrors of in-laws and contrived egg hunts.  And really, we know wherefrom we speak.  To wit: ("Gee, great job Suzie.  Who would have thought the egg was hidden in the same flower pot as last year?  No, it is true.  You are a child prodigy.  Yes, of course I mean it.  It takes a special kind of child to stay obese all this time in the face of the massive Adderall doses your mother feeds you out of her own prescription.  Oh, no, don't cry!  It just means there's more of you to love!")

No, I haven't been invited back- so now we can spin for you.  I'll jump on the decks first.  But that means I'm just the opening act.  Our headliner tonight?  Jana von Alpha.  ("Brace for trance impact!")

http://radio.cl.zerohedge.com

Dreading the in-laws?  How about chatting up the DJ (and the other Sunrisers) via our new and improved IRC server: chat.zerohedge.com.  Instructions for the new security protocols here: http://chat.zerohedge.com.

Need personalized instruction?  Can do.  Just AIM ("instant messenger) us here: aim:radiozh or (for assistance at the speed of ObamaCare) leave a comment in this thread).

Standard connections on port 6667, SSL encrypted via port 6697

Join us.

1:30(ish) am ET.

 
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