The Spailout Has ALREADY Failed ... Before the Ink Has Even Dried

George Washington's picture

The market rallied for a couple of hours on news of the $100 billion dollar Spanish bailout (which everyone is calling the Spailout) … and then crashed.

Bloomberg notes:

U.S. stocks fell, following the biggest weekly rally in the Standard & Poor’s 500 Index this year, as optimism over Spain’s bailout plan gave way to skepticism it will succeed in halting the debt crisis.




“The Spanish deal is another Band-Aid,” said Matt McCormick, who helps oversee $6.2 billion at Bahl & Gaynor Inc. in Cincinnati. He spoke in a telephone interview. “Many investors are viewing this with skepticism. The problem is not going to be fixed by this amount. It’s not a solution, and people know the difference. Expect more volatility not less.”

CNBC writes:

Stocks accelerated their selloff in the final minutes of trading to close down more than 1 percent across the board Monday, as initial euphoria over Spain’s bank bailout fizzled and amid ongoing fears over a global economic slowdown.




“A lot of people were concerned over the size of the bailout—we were expecting something closer to 150-200 billion [euros] and we only got 100 billion,” said Phillip Streible, senior commodities broker at RJO Futures. “So once traders started to digest [the news], they started to take profit or sell into that rally because they think that in another 3 to 6 months, Spain’s going to have to come back and ask for additional money.”

Zero Hedge says:

As evidenced by today’s reaction to the bailout, which had a half life of 2 hours, and was a complete failure in 6, the market is learning much, much faster than expected.

This “Spanic” over the Spanish crisis is occurring even before the ink has dried.

Nobel economist Joe Stiglitz pointed out the Ponzi scheme nature of the whole bailout discussion:

Europe’s plan to lend money to Spain to heal some of its banks may not work because the government and the country’s lenders will in effect be propping each other up, Nobel Prize-winning economist Joseph Stiglitz said.


“The system … is the Spanish government bails out Spanish banks, and Spanish banks bail out the Spanish government,” Stiglitz said in an interview.




“It’s voodoo economics,” Stiglitz said in an interview on Friday, before the weekend deal to help Spain and its banks was sealed. “It is not going to work and it’s not working.”

Credit Suisse’s William Porter writes:

“It’s all about Spain”, so now we are cutting to the chase. Recapitalization of the banks versus funding the sovereign is of course a semantic issue given the nature of the interplay. But it enables the attempted finesse we describe below.


“Portugal cannot rescue Greece, Spain cannot rescue Portugal, Italy cannot rescue Spain (as is surely about to become all too abundantly clear),  France cannot rescue Italy, but Germany can rescue France.” Or, the credit of the EFSF/ESM, if called upon to provide funds in large size, either calls upon the credit of Germany, or fails; i.e, it seems to us that it probably cannot fund to the extent needed to save the credit of one (and probably  imminently two) countries that had hitherto been considered “too big so save” without joint and several guarantees.

Porter says that either France of the EFSF/ESM will fail in 2 months.

Press Association notes today:

Spain became the fourth country after Greece, Ireland and Portugal to turn to the eurozone rescue fund for financial help.

Of course (to no one’s surprise) Italy is next in the cross-hairs of debt crisis.

Many of us have been forecasting how this was going to play out since 2008.

For example, we noted in 2010:

It is now common knowledge that there is a potential domino effect of European sovereign debt contagion in roughly the following order:


Greece → Ireland → Portugal → Spain → Italy → UK




It is also now common knowledge that while Greece and Ireland have relatively small economies, there will be real trouble if the Spanish domino falls.




As Nouriel Roubini wrote in February:

But the real nightmare domino is Spain. Roubini refers to the Spanish debt problems as “the elephant in the room”.


“You can try to ring fence Spain. And you can essentially try to provide financing officially to Ireland, Portugal, and Greece for three years. Leave them out of the market. Maybe restructure their debt down the line.”


“But if Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side—and also too big to be bailed out.”


With Spain, the first problem is the size of its public debt: €1 trillion. (Greece, by contrast, has €300 of public debt.) S

pain also has €1 trillion in private foreign liabilities.


And for problems of that magnitude, there simply are not enough resources—governmental or super-sovereign—to go around.

And as I’ve previously pointed out, Germany and France – the world’s 4th and 5th largest economies – have the greatest exposure to Portuguese and Spanish debt. For more on the interconnections between Euro economies adding to the risk of contagion, see this and this.


While it is tempting to assume that the Eurozone bailouts mean that creditor nations which have managed their economies well and saved huge amounts of excess reserves which they lend out, Sean Corrigon points out that the European bailouts are a Ponzi scheme:

Under the rules of this multi-trillion shell game, the sovereigns guarantee the ECB which funds the banks which buy the government debt which provides for everyone else’s guarantees.

(America is no different: Bill Gross, Nouriel Roubini, Laurence Kotlikoff, Steve Keen, Michel Chossudovsky and the Wall Street Journal all say that America is running a giant Ponzi scheme as well….


It didn’t have to be like this. The European nations did not have to sacrifice themselves for the sake of their big banks.

As Roubini wrote in February:

“We have decided to socialize the private losses of the banking system.




Roubini believes that further attempts at intervention have only increased the magnitude of the problems with sovereign debt. He says, “Now you have a bunch of super sovereigns— the IMF, the EU, the eurozone—bailing out these sovereigns.”


Essentially, the super-sovereigns underwrite sovereign debt—increasing the scale and concentrating the problems.


Roubini characterizes super-sovereign intervention as merely kicking the can down the road.


He says wryly: “There’s not going to be anyone coming from Mars or the moon to bail out the IMF or the Eurozone.” [Others have made the same point]


But, despite the paper shuffling of debt at the national level—and at the level of supranational entities—reality ultimately intervenes: “So at some point you need restructuring. At some point you need the creditors of the banks to take a hit —otherwise you put all this debt on the balance sheet of government. And then you break the back of government—and then government is insolvent.”

Indeed, the world’s foremost banking authority warned in 2008 that this would happen:

As I pointed out in December 2008:

The Bank for International Settlements (BIS) is often called the “central banks’ central bank”, as it coordinates transactions between central banks.


BIS points out in a new report that the bank rescue packages have transferred significant risks onto government balance sheets, which is reflected in the corresponding widening of sovereign credit default swaps:

The scope and magnitude of the bank rescue packages also meant that significant risks had been transferred onto government balance sheets. This was particularly apparent in the market for CDS referencing sovereigns involved either in large individual bank rescues or in broad-based support packages for the financial sector, including the United States. While such CDS were thinly traded prior to the announced rescue packages, spreads widened suddenly on increased demand for credit protection, while corresponding financial sector spreads tightened.

In other words, by assuming huge portions of the risk from banks trading in toxic derivatives, and by spending trillions that they don’t have, central banks have put their countries at risk from default.



But They Had No Choice … Did They?


But nations had no choice but to bail out their banks, did they?


Well, actually, they did.


The leading monetary economist told the Wall Street Journal that this was not a liquidity crisis, but an insolvency crisis. She said that Bernanke is fighting the last war, and is taking the wrong approach (as are other central bankers).




BIS slammed the easy credit policy of the Fed and other central banks, the failure to regulate the shadow banking system, “the use of gimmicks and palliatives”, and said that anything other than (1) letting asset prices fall to their true market value, (2) increasing savings rates, and (3) forcing companies to write off bad debts “will only make things worse”.

Remember, America wasn’t the only country with a housing bubble. The world’s central bankers let a global housing bubble development.  As I noted in December 2008:

The bubble was not confined to the U.S. There was a worldwide bubble in real estate  .Indeed, the Economist magazine wrote in 2005 that the worldwide boom in residential real estate prices in this decade was “the biggest bubble in history“. The Economist noted that – at that time – the total value of residential property in developed countries rose by more than $30 trillion, to $70 trillion, over the past five years – an increase equal to the combined GDPs of those nations.


Housing bubbles are now bursting in China, France, Spain, Ireland, the United Kingdom, Eastern Europe, and many other regions.


And the bubble in commercial real estate is also bursting world-wide. See this.

BIS also cautioned that bailouts could harm the economy (as did the former head of the Fed’s open market operations). Indeed, the bailouts create a climate of moral hazard which encourages more risky behavior. Nobel prize winning economist George Akerlof predicted in 1993 that credit default swaps would lead to a major crash, and that future crashes were guaranteed unless the government stopped letting big financial players loot by placing bets they could never pay off when things started to go wrong, and by continuing to bail out the gamblers.


These truths are as applicable in Europe as in America. The central bankers have done the wrong things. They haven’t fixed anything, but simply transferred the cancerous toxic derivatives and other financial bombs from the giant banks to the nations themselves.

And Europe – like the U.S. – has made the cardinal sin of covering up fraud, so that the wound can never be cleaned, but will just infect the patient.  Indeed, the sepsis is killing the patient.

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Snakeeyes's picture

Good post George. Fitch came out and threatened to downgrade EVERYONE and did downgrade Spanish banks. Are they starting to get the idea that Europe can't be saved?

hedgehog9999's picture


I am starting to get vibes based on information floating around from Germany that maybe the only band-aid solution that they are really after to stretch this EFSF, ESM  and all the other three letter acronyms in conjunction with massive printing is what the gold bugs have been saying all along, which is  revalue gold as a way to preserve the current fiat environment and move to a quasigold backed currency system.

They would do this by padding the EFSF and all those three letteres piggy banks with gold contributed by members. Print like crazy along the way as needed and therefore trigger huge one time increases in the price of gold, (I am talking gold up 10 to a 100 times). This in turn would massively increase the value of those funds to "solve" the massive debt problem. This would bring in huge sudden inflation across the board and it would only succeed if strict discipline and budgetary controls are brought about going forward, which I doubt will happen as a the criminals would still try to siphon money out of the system and the population now burdened with hyperinflation would demand more and more free dole from their governments to get by.

Nevertheless this hairbrained scheme would stretch this charade a few more years potentially and it shows that somehow gold will play a role in whatever scheme comes along.

Mr Rogers will once again be proven right as revaluing gold has a huge implication for all commodities. So buy anything that hurts when dropped on your foot (industrial metals, bottles of booze, boxes of food, containers of oil,etc. and of course precious metals and strategic metals like all rare earths, berylium, graphite, Lithium, etc.). I'd stay away from Uranium....though... it can hurt more than your foot.

Marley's picture

Hey George, how ya doing?


tony bonn's picture

as always, mr president, the article is exhilerating for its truthfulness....

cdskiller's picture

Easily one of the most thorough and irrefutable analyses I have ever read. It should be required reading.

Widowmaker's picture

Who really believes bailouts do anything whatsoever except cover up fraud and malicious criminal activity?

The entire fucking racket is organized crime and central banks are part of the action.

Record bonuses in spain! Dog food and corporate war for everyone else.

hedgehog9999's picture

"Nobel economist Joe Stiglitz pointed out the Ponzi scheme nature of the whole bailout discussion:"


The word Ponzi comes up again all the time in reference to Ponzi bailouts........

To start with, the fracctional reserve banking scheme is a mild sanctioned slow motion Ponzi scheme.

The bailout processes in place are using what I would call a Circular Central Banks Bailout Process Mechanism or CCBBPM.

With the CCBBPM approach , all central banks in the Union provide some money to the European bailout funds who then recycle that money to, in the case of Spain the Spanish Central Bank who then gives money to their stricken banks on a low interest basis, then the banks recycle that money back to buy spanish debt covering the goverment deficits and the spanish government uses some of that money to contribute to the Europena bailout funds in preparation for the next bailout cycle.

It is a little more complicated than that but we all get the point , paper shuffle from my left pocket to their right pocket to my right pocket then to the bankk pocket back to my left pocket, etc.

At a nation level they have a well proven and tested fracctional reserve banking ponzi in place. Then at a multination level they are trying to superimpose a Circular CCBBPM, trouble is it is multidimensional (17 nations) and orders of magnitude more complicated. Bernanke 's circular scheme is one dimension only which makes his job a lot easier but still with a CCBBPM construct as they shuffle money from and to different pockets in the same manner.

Escapeclaws's picture

The word Nobel keeps coming up again all the time in reference to economists...

Some Nobels are not worth the mention or even have negative connotations, including Nobel Peace Prizes and Nobels in economics. Pretty soon they'll offer a Nobel to Bernanke in Ponzi Banking and to Jamie Diamond in Systemic Fraud. Please have the grace to not use the word Nobel in connection with these mediocrities. They don't deserve to bask in the glory of a Richard Feynman or an Edward Witten, which is what the word Nobel implies. It's like giving Soros a Nobel for his "Theory of Reflexivity".

NEOSERF's picture

As soon as you get a bailout, any bailout, shouldn't your "committment" to the ECB, EFSF, ESM, IMF or any other group be rescinded?  Shouldn't those groups have to restate what their levels of free cash are?

Money 4 Nothing's picture

The Treasury Dept. IS the IMF.. Hello? The name Treasury is in name sake only, you know... so people don't freak out..

Angus195's picture

...the fractional reserve banking scheme is a mild sanctioned slow motion Ponzi scheme.

Absolutely.  And if this is true, those who built it understand very well that it will ultimately fail and come to an end - all Ponzi schemes ultimately implode - they have to by their very nature.  So ... assuming these 'central planners' understand this when they built it, did they not already design a 'plan/system' to bring out when the collapse occurs?

They had too. 

All this nonsense i.e. bailouts, on camera brawls and fights, the yelling and screaming is the resulting and necessary drama' needed to distract the sheeple - getting them/us whipped up in a frenzy in order to 'sneak' in the 'solution' (something they wanted all along) which in my opinion will be far worse than the current problem.


blindman's picture

prosecute the crime or be ruled by criminals.

blindman's picture
No **** -- More Debt Doesn't Work?

I'm done being nice.

If you didn't figure it out this morning you deserve a middle finger in response to any sort of crap email you send me on the subject of what you do when you're too far in debt.

LONDON—Investors fled from Spanish government debt on Monday, an immediate rejection of the country's planned bank bailout by the constituency it most desperately needs to impress: the buyers of its own government bonds.

The market rout puts Spain and the euro zone in a dire position. The bailout plan—in which Spain agreed to accept up to €100 billion ($125 billion) to recapitalize banks—was hatched to alleviate the concern that Spain itself could be dragged down by the declining fortunes of its lenders.

There is no solution -- here or anywhere else -- to excessive and bad debt found by taking on more debt. That is exactly identical to opening a new credit card when your current one hits its limit and comes back declined!

I'm simply not going to put up with people claiming that we must "borrow more" or "spend more" as a means of solving this. I don't give a damn which political party or what persuasion you come from in this regard -- all will get one-line middle-finger image in response, and if you run that crap on my forum you'll do it exactly once, so make your departure memorable.

I'm tired of Lyin' Ryan, Mittens who both bans guns and has claimed he won't cut the budget his first year, Obama who can't get his lips off Blankfein's and Dimon's schnozz and folks like Pelosi, Stiglitz and Krugman, all of whom claim that the way to evade a "debt deflation" is to print and spend more money, or Bernanke who claims that "in the intermediate term" we must fix our deficits but "for now we can't tamper with the recovery." And I'm tired of people like Gary Johnson who claims he's submit a 43% cut federal budget but doesn't appear to understand what this means in economic terms nor does he address it, nor will he address the places he can mitigate the instantaneous damage that would appear through things like putting a stop to the immoral and outrageous monopolist practices in the medical industry -- practices that can only happen with the explicit enforcement capacity of government force.

The Party of Principle eh? How about just another head on the same damned snake?

All of these assclowns have had four years to prove their thesis and it has been resoundingly disproved by the factual record of what has actually happened.

Hiding the truth does not change it. Lying does not change facts. Claiming that crap assets are good does not make them change in character and payment prospects. All claims of expected compound growth on an indefinite forward basis are pyramid schemes and unlawful for this reason, yet they're still being made right here, right now, today. And claims that "deflation" is "bad" when it is the correction of an intentional and fraudulent credit inflation that you allowed to take place over the space of 30 years, which should have resulted in the banksters and pension fund managers involved drawing 20-to-life prison terms decades ago for running intentional and knowing ponzi schemes are outright lies.

Yeah, sure, there will be more "can kicking." I'm sure of it. But I'm also sure it won't work, because it can't. I said back in 2007 that he only solution to this problem was to ring-fence the government (not take the bad debts onto the government), cram down all the bondholders and stockholders and protect the depositors, force the derivatives to be covered with capital for every dollar of underwater position without exception and let what comes from that happen. What would have (and still will, if we do it) come from that would be that a lot of so-called "rich" people would be rendered instantly bankrupt and the people they robbed with their knowingly-false promises would then sue them and pick their carcasses clean.


Yes, it would have sucked. Yes, it will suck (worse) now, because we've done stupid things in the four interim years. But it is no less necessary today than it was in 2007 -- in fact it's more necessary as we're now $5 trillion poorer in terms of federal debt and in terms of total systemic debt we have more now ($54.642 trillion) than we did at the end of 2007 ($50.898 trillion) - 7.4% more!

Yes, GDP is "up" 8.5% in the same time. But that means the so-called "de-levering" is a damned lie, as the spread has only narrowed by 1.1% in that same four years!

There has been no de-levering of any substance at all. After a small decrease in total systemic debt in 2008 it has begun climbing again, and there is no evidence of any sort that any policy steps are being taken to put a stop to it, nor to force those who fraudulently issued these credits to eat their own cooking. Instead, everything possible has been done both here in the US and internationally to force the common man to eat it. In the United States alone this has resulted in a raw theft of over $3,000 per year for every man, woman and child in the country over the last four years -- that's $12,000 for every person from an infant to an old widow on Social Security that has been stolen over the last four years and given to the banksters so they do not have to recognize their insolvency and go out of business -- or be prosecuted and rot in a federal prison, which is what they deserve.

The people responsible for this scam over the last four years -- each and every single one of them -- deserve to be held to account. Every single pension manager, every single Treasury official, every single House and Senate member along with nearly all of their staffers and both recent Presidents should be rotting in a Federal Prison right now on federal fraud charges.

Every one of them, along with all their so-called "advisors" who failed to get out in front of this, who failed to speak, who failed to stand up in front of a camera and speak to the truth.

All of them.

And yet instead of showing up in DC in a real "ten million person march", refusing to leave until handcuffs are deployed on the assclowns in the Capitol, you're going to go play "nobody committed and crimes" and go push the button in a few months for more fraud, more abuse, more lies, more scams, just so long as you get your food stamps, your social security and your Medicare.

But you're not going to get any of it because this entire crap-pile is going to come down around your ears.

And you, I, and every one of the politicians deserve it, because we have all failed to act, to demand accountability, to insist that the incessant and outrageous ripoffs stop and the people responsible be prosecuted for what they have done.

Zero Govt's picture

in short, let's pitchfork the bankers (and their political puppets)

no more Mr Nice Guy, storm the ivory towers

Zero Govt's picture

GW, you're taking financial 'advise' from BIS ?

Who are? ..who elected them?? ...who is behind/owns BIS???

Isn't BIS a(nother) private (monopolist matrix) organisation HQ'd in Switzerland with their claws into every State monopoly central banking institution?

it's a bit late (circa 2008) BIS warning about the property bubble bursting (circa 2006-07) isn't it? ..what were BIS doing as the property bubble was being blown by central and retail banks the previous 20+ years, whistling Dixie?

GW ushers in advise from the Fox on how to run the Hen House ...the horse has bolted, the chickens are plucked, you're a tad late'ish mate trying to peddle BIS was anti-bailout and did anything proactive or wise in this utter banking shambles

Reptil's picture

you can do the same trick twice

but NEVER three times


Jack Sheet's picture

This reads a bit like a Graham Summers piece without the free report

TSA gropee's picture

And you've posted exactly how many articles on ZH? Asshole

Zero Govt's picture

take a deep breath and comb your hair

aleph0's picture

In one line : "And Europe – like the U.S. – has made the cardinal sin of covering up fraud"


... since 1913 !

AnAnonymous's picture

I am in the middle of my third reference book on voodoo (all written by US citizens)

I found nothing so far that could explain why US citizens chose to call their way of doing economics voodoo economics.

Would like to read an explanation about that as well by reading books on voodoo, it is hard to manage to see the link.

Best, best: zombies in voodoo do not eat, do not drink, do not sleep. Yet US citizens chose that mythological creature to personify mindless consumption. How did they manage the trick? Another explanation rooted in US citizenism for sure.

With more sources on voodoo, one could actually makes the point that voodoo opposes US citizen economics.

Useless though to check because voodoo is irrelevant, contrary to US citizenism.

All this to point out that once again, the deflection machine is up and kicking in US citizen societies. Nobel prize winner is doinghis US citizen job: deflecting the blame onto an undefined, irrelevant entity to preserve the myth of US citizen economics being the economical model.

US citizenism at work: propaganda and fantasy through their most talented, most intelligent, most trained US citizens.

Escapeclaws's picture

You are such a bore with your hackneyed phrase "US Citizenism", Mr. Johnny One-note. I bet you couldn't write anything without that phrase. Are you up to the challenge?

Nukular Freedum's picture

Sir, how about a different take on economics besides the dry textbook take on US citizen economics? The text book authors claim that the nature of US economics is eternal when done right. But perhaps US citizens are not doing it right (this seems to be the gist of every poster and his dog on ZH so why blame AA for saying it too?).
But they say US economics is eternal, so what's going on?

For me the best model for economics is not Walrasian equilibrium theory (although it amounts to the same thing) but rather the Zen-like tendency of markets to clear and adjust when free. Is there any justification for this novel interpretation of economics from ancient texts? Indeed there is!

Nukular Freedum's picture

Voodoo economics. It works in Haiti!

AnAnonymous's picture

US citizen economics at work in Haiti.

TheFourthStooge-ing's picture

French Indo-Chinese Antarctic citizenism zonbi at work in Haiti.

TheFourthStooge-ing's picture

AnAnonymous said:

Best, best: zombies in voodoo do not eat, do not drink, do not sleep.

Rongwrong, as zombies will return to the grave if you feed them salt. Therefore, zombies eat.

I am in the middle of my third reference book on voodoo (all written by US citizens)

Why? You have said many times that US citizens are duplicitous. Can't you see that each of those books were written specifically to fool you?

AnAnonymous's picture

Rongwrong, as zombies will return to the grave if you feed them salt. Therefore, zombies eat.


That is one way to put it.

Zombies do not eat, do not drink, do not sleep.

Pushing salt into their mouth does not mean they eat.

Pushing food in a statue's mouth, feeding a statue does not mean the statue eat.


Nope. The books are written by US citizens, meaning they are very likely to include US citizen bias.

When even books written by US citizens reports that zombies do not eat, do not drink, do not sleep, well...

TheFourthStooge-ing's picture

AnAnonymous said:

When even books written by US citizens reports that zombies do not eat, do not drink, do not sleep, well...

...well, according to the AnAnonymous fetish of disagreement with everything said or written by US citizens, this would mean that zombies are gluttonous eaters, drink to excess, and sleep well past noon.

AnAnonymous's picture

...well, according to the AnAnonymous fetish of disagreement with everything said or written by US citizens, this would mean that zombies are gluttonous eaters, drink to excess, and sleep well past noon.

More strawsman. Funny because just yesterday, I repeated that facts do not require to be agreed on.

Putting words in one's mouth. Feeding propaganda. Fantasy.

Hey, funny.

TheFourthStooge-ing's picture

AnAnonymous said:

More strawsman. Funny because just yesterday, I repeated that facts do not require to be agreed on.

Ah, ah, you are the one in charge of the strawsman factory, because your repeation that facts do not require to be agreed upon was more strawsman building. Funny, because rather than answer my question, you builded up the strawsman to take place of my question and so your repeation was doing in answer of response to the AnAnonymous strawsman du jour.

Putting words in one's mouth. Feeding propaganda. Fantasy.

Yes, that accurately describes your activity on ZeroHedge. I'm glad that you're finally starting to see what you've been keeping cloaked from yourself.

Hey, funny.

True, true, your entertainingment is among the bestest for humour inducement. You are a natural comedy goru.

JOYFUL's picture

the fourth stooging said: 

gluttonous eaters, drink to excess, and sleep well past noon....

"he will sleep till noon, but before it's dark, he'll have every picnic basket that's in Jellystone Park!" [Hanna\Barbera Productions, now copyright Warner Bros...(owned by ?!??!?)]

ah, Yogi Bear...arch US Citizen!

and yet, and yet[i?}:\]the US citizen bear n other fauna n flora what our pompous pontificators from da east constantly remind us are being im-per-illed by US Citizenism seem to be in much greater supply than the "Han Citizen" style panda bear...which is in very limited supply due to the consumption of bear parts by the upper strata of Han Citizen proletarian heroes!?!?!? Seems like our socialist friends have a better "grasp" of the concept of supply n demand than the US Citizen does!

What a conundrum!? Lets all go to Archie n Jugheads' favorite soda fountain now to sort out our differences...over a shake n burger! Last one there is a "Han Citizen!"

Crisismode's picture

AnAnon has about as much consistency in his senseless drivel

as any politician in the world.

Actually, it would not surprise me one iota to discover that he is another posturing elected douchebag.

Vote AnAnonymous for president!

AnAnonymous's picture


Well, provide a reason why US citizens have called their US citizen economics so to assess your US citizen consistency.

TSA gropee's picture

You spew more shit out of your hole than an elephant with diarrhea. Fuck off.

JOYFUL's picture

further proof that book-learnin is no substitute for real life experience...and that Chinbots are no substitute for real life folks!

pioneering physiologist Walter Cannon posed in his controversial article entitled 'Voodoo Death' published in the American Anthropologist in 1942,explored cases in which fear spirals out of control, generating damaging physiological effects. The examples he discussed revolved around the dark magic of tribal societies,.. Cannon was particularly fascinated by the prospect of offering a scientific explanation of deaths which occurred after the victim being subjected to a sorcerer's spell, or 'hex'; death from fear... The superstitional systems constituted a set of virtual (yet real) thresholds, which, when crossed, unleashed a fatal affective power 'through unmitigated terror' (1942: 170).

The superstitious tribal magic of "Han Citizenism" leave it's members in constant dread of being found out as kloset kapitalist-roaders, looking to hop a ride into the heart of US Citizenism, where they will snuggle up to the US Citizenism lifestyle like bugs in a rug...

in the meanwhile they peer in through a glass darkly, muttering insensible phrasing picked up from ESL classes in vain hopes of warding off the fox spirits which haunt their every waking moment


AnAnonymous's picture

Nothing in the quote names a zombi. Voodoo is quite larger than zombi though. It states nothing about zombies eating, drinking or sleeping. So yep.


Real life experience? About zombies? The frontier between fantasy and reality is blurred for US citizens.

JOYFUL's picture

weak, weaker...yu have a computer, presumably...with sufficient motivation yu could have delved into the connection between voodoo and zombies...a la Haitian tradition...

but in tried n tru "han citizenism" fashion...the parastical proletarian project relies upon others{:\US Citizens perhaps?!?} to do the heavy liftin, while the arch kapitalist roaders lay back and moan about the rigors of public security work in the wilds of Tibetan tundras\:>

AnAnonymous's picture

Weak? And US citizen speak of consistency?

You call real life experience over scholar book learned stuff, remember?

And no, the Internet is not real life experience.

And Zombies are connected to Voodoo. Zombies are a religious belief in the voodoo religion.

But the fact is that in Voodoo, zombies do not eat, do not drink, do not sleep.

So the question hangs: how have US citizens managed to personify mindless consumption through a mythological creature that does not eat, drink and sleep?

JOYFUL's picture

yu are getting shrill, which is always a sign that the committe has reached a dead end in how to best address a challenge to it's proletarian propriety...

if yu get any shriller, yu will be like Phyliss Diller...

and soon yu will be appearing on reruns of the "Sullivan Show" the knee of a man who seamlessly vocalizes the manipulated motions of a character beloved to generations of US citizens...

this will be even worse than yur outposting to Uyghuristan.

JOYFUL's picture

another episode of the soap opera brought to yu by the same folks what dreamed up soap n skin lampshades...

meanwhiles, in the category of news, as opposed to repetitive loops of reported heavy weather over Meditterranean coastal areas, SR Roccos report of Barrick's pending demise over at is a must read for anyone with an interest, financial or otherwise, in the precious metals.

Barrick and JPM...the two heads of the too big to fail Bush-ey tailed Hydra that is goin down down down, right now, in a burnin ring o fire!

Thar she blows Cap'n Jamie! "Get Bronfman on the line! -now!  -Weather Report\Palladium

Obadiah's picture

Good sheet for us goldbugs

Jack Sheet's picture

Many thanks for the link. Hold or sell Silver Wheaton?

DavidPierre's picture



Steady as she goes...

The news ... the banking sector in Spain is set to be bailed out...reaction was positive.  Unless money comes from somewhere to shore up the European financial mess, or the entire mafia system is going to come crashing down.  It is a no-brainer then that money will come, in amounts previously considered to be too massive to even contemplate.  Fire up the printing presses, and warm up the helicopters, because there is no other alternative.

One analogy that comes to mind is how a condemned man on death row will file appeals for as many years as possible to delay the inevitable.  Even a life in crisis is better than death.  So too for the corrupt, mafia infested and failed 'White Shoe Boy' banks.  Sure they should have closed, debts written off, and the painful yet healthy recovery process allowed to run its course.

That ship has sailed.  Instead, we are left with few options now and all of them lead to a bad outcome.  Faced with choosing implosion now, or printing lots of money and waiting for things to spin out of control later, the bailout is a pretty easy decision. 

The ultimate price tag to settle this crisis runs in the trillions of dollars.

Since the money is created out of thin air, it will be found and distributed through the system the same way that a fireman does not put much thought into the volume of water gushing out of his hose when at a fire.

People will argue that so much money just cannot be created and pumped in to bail everyone out.  But again, the alternative is a collapse anyway, so even a delay is a victory. And the same reasoning is used to claim that there is 'not enough' gold in the
world to back all of the fiat money out there.


There is just not enough gold at anywhere near the current market value for the metal.  Add a couple zeros to the spot price and then magically there appears to be enough gold restore sanity and restraint.

That will come in time.

Once done with Spain, attention will focus on Italy, France, and even Belgium is a candidate for trouble down the road.  Japan is going to become a crisis that can drag down the world financial system.  And the USSA is the biggest debt bubble of them all, but it will be the last one to face scrutiny as long as the USD remains the world reserve currency. 

One by one, another huge bailout cheque will be issued that was previously thought impossible... just to keep the system afloat.

It does not come as any surprise that the PM sector rolled over today.

Go back for months and you'll probably not find a single Monday morning when gold, silver, and the mining stocks have been able to generate any positive momentum at all.  Never mind whether the outside market factors are bullish or bearish, fundamentals be damned. Smart buyers will fade the rally and buy the dips on a Monday, and make easy money.

All those who pretend there is no intervention in the PM sector have major trouble explaining how this could play out in a normal functioning market.

At the end of the day, many pieces of paper that called 'money' are distributed through the system, the fact will remain that gold is the only true money and that it has represented the only lasting form of financial security throughout human history.  

People can pretend that things are going to be fixed, or choose to ignore the problems, but the outcome is the same. 

The financial elites are only buying time with this game, and gold is holding in a price range that will one day appear as a great mystery.

Why did so many people fail to load up with financial insurance when the rot and the 'in-your-face' fraud in the corrupt ameriKlan system was so plain to see?


Escapeclaws's picture

Do you realize that even 10 years ago the Walton family fortune was $250 Billion. I'll betcha it's a cool $Trillion now.