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Deep Sunday Morning Thoughts From Bill Gross

Tyler Durden's picture


Just because Jack Handey never got to manage $1+ trillion in debt...


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Sun, 11/11/2012 - 09:02 | 2969498 realtick
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Detonation Of The Dome - Deflation Nation And The DJIA

Sun, 11/11/2012 - 09:09 | 2969505 GetZeeGold
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In otherwords...we're screwed.


Let's see Bam Bam get out of this one.

Sun, 11/11/2012 - 09:21 | 2969543 Tucson Tom
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He doesn`t want to get out of the problem.A crisis ,in his eyes, is desirable to enact punishment on his perceived colonial oppressors."Never let a good crisis go to waste". Dog the hatches brothers,the barometer is dropping fast!

Sun, 11/11/2012 - 09:51 | 2969611 Earl of Chiswick
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In otherwords...Pimpco is screwed.


Let's see Billy get out of this one. -

not to worry he and his corpratist allies will apply sufficient pressure to their political underlings to ensure an excellent return on their book


Sun, 11/11/2012 - 10:40 | 2969724 Thomas
Thomas's picture

What's a "deep cliff?"

Sun, 11/11/2012 - 11:10 | 2969786 Enslavethechild...
EnslavethechildrenforBen's picture

It's what they use to convince themselves it's morally acceptable to steal trillions

Sun, 11/11/2012 - 11:19 | 2969804 northerngirl
northerngirl's picture

Looters have morals?  On second thought, you are correct.  Since the average American maintains a, "Looter", mentality, it is our moral right to take.

Sun, 11/11/2012 - 11:22 | 2969813 Enslavethechild...
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your average person is being looted by the government

loot them back

or die

Sun, 11/11/2012 - 13:28 | 2970118 economics9698
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The gypsies at the Fed are good at playing three card monte.

Sun, 11/11/2012 - 16:55 | 2970560 FEDbuster
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Some CNN reporter said she didn't like "fiscal cliff", so she wanted people to "tweet" her new suggestions to describe US government's financial collapse. 

I don't "tweet", but the "Shit Abyss" is still my favorite. "As lawmakers approch the shit abyss in 51 days......"  Just guessing that CNN wouldn't use that one.

Sun, 11/11/2012 - 22:33 | 2971425 markmotive
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Question: how will the fiscal cliff impact silver?

My answer: could be a rough few months until the Fed kicks in...again.

Sun, 11/11/2012 - 23:24 | 2971562 FEDbuster
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"Buy some silver or gold every month, become your own central bank", Dr. Marc Faber

"The only true assets are those you can stand in front of and defend with an AR-15", Ann Barnhardt

Sun, 11/11/2012 - 11:27 | 2969827 Mr Pink
Mr Pink's picture

It's like a shallow mountain but wider

Sun, 11/11/2012 - 11:40 | 2969867 alfred b.
alfred b.'s picture

's cleavagier than regular cleavage!


Sun, 11/11/2012 - 13:00 | 2970045 ChanceIs
ChanceIs's picture

Billy be too smart for that.  He is ALWAYS on the inside track.  Remember how he bought mountains of bonds then came to Washington preaching money printing and bond buying.  Then he sold his, warned of inflation, warrned of a bond glut, warned of potential Chinese dumping, and then told Bernanke to start doing Beta tests with reverse repos (or whatever) to start bringing some cash out of circulation.

How will he survive the coming bond implosion???  Buying calls on the TBT perhaps?  That is what I am going to do.  Have been tempted to short some OTM puts right here, right now.

Sun, 11/11/2012 - 11:25 | 2969820 lakecity55
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mumbling from inside a bath house somewhere..... " it's time for YT to pay. Pay! Hahahahha.

Larry, where's the crack pipe?"


Sun, 11/11/2012 - 11:47 | 2969876 gtb
gtb's picture

That would be a gay bath house...but is there any other kind?

Sun, 11/11/2012 - 09:10 | 2969510 maxmad
maxmad's picture

Yeah... the stock market has been telling us deflation.... LOL

Sun, 11/11/2012 - 09:46 | 2969598 otto skorzeny
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patience young Jedi.

Sun, 11/11/2012 - 09:49 | 2969605 cjbosk
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Max, you home and net worth is certainly signaling deflation. The market is irrevelant because so little of America participates/benefits from the higher prices you see today. Your home will fall more, your net worth will contract more and your "real" wages will continue to fall. Now tell me, is that inflationary?

JapanAmerica Bitchez!

Sun, 11/11/2012 - 09:54 | 2969621 cossack55
cossack55's picture

In todays world, yes.  In a real world , no.

Sun, 11/11/2012 - 10:36 | 2969721 algol_dog
algol_dog's picture

Well, it's on the internet so it must be true ... I'll start preparing right away

Sun, 11/11/2012 - 09:16 | 2969508 Cognitive Dissonance
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Bill Gross is busy managing perceptions, particularly his own clients. That's what's really going on here.

When interest rates begin to rise the Pimco Total Return (bond) Fund ain't gonna do so good. He is positioning his clients for permission to change the investment mix so he and his Total Return Fund can survive.

Sun, 11/11/2012 - 09:26 | 2969551 fonzannoon
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If BG had any balls, he would outwardly agree with your thesis. He would come out and say "My plan for the total return fund is to have 50% weighted in physical gold, redeemable at any time by our clients". That would something.

Sun, 11/11/2012 - 09:44 | 2969593 btb2010
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He has already told everyone the bond and equities' markets returns will be bleak and to BUY REAL ASSETS, specifically GOLD.

Sun, 11/11/2012 - 09:50 | 2969607 RSloane
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He's been fairly consistent about favoring gold at this time. He's also discussed it in different venues. The funny thing about it is he sounds sometimes like he just discovered gold and is excited to tell everyone of his new find!

Sun, 11/11/2012 - 10:14 | 2969670 fonzannoon
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 i think he recently upped his portfolio's gold holdings by.001%. Time for less talky talky. time for action. 

Sun, 11/11/2012 - 12:58 | 2970038 Bicycle Repairman
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If Gross wanted to do his clients and this nation favor, he'd buy a bunch of gold and then publicize it.

Sun, 11/11/2012 - 09:14 | 2969519 francis_sawyer
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Going deeper into debt = 'Shovel Ready Job'

Sun, 11/11/2012 - 13:02 | 2970048 DosZap
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Going deeper into debt = 'Shovel Ready Job'

YOU have to KNOW what a shovel is, to say that......................the dumb ass(not this poster) that said  hasn't a clue, but it sounded good.

Sun, 11/11/2012 - 09:17 | 2969527 Peter Pan
Peter Pan's picture

The Fiscal cliff is only the beginning because it does not take into account the unfunded liabilities which ulimately make that fiscal cliff far deeper than anyone can imagine. maybe 4 to 10 times deeper.

Sun, 11/11/2012 - 09:34 | 2969568 jcaz
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Agreed- we're only being focused on the Fiscal cliff because it's a diversion to the unfunded liabilities mess.....

Sun, 11/11/2012 - 13:04 | 2970055 ChanceIs
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That's right.  Pushing the seniors off of the fiscal cliff.  That is what fiscal cliffs are good for.  FOREWARD!!!!!!

Thelma and Louise were not so crazy.

Sun, 11/11/2012 - 09:47 | 2969602 otto skorzeny
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wait til the Fed has to start soaking up munis-if we make it that long

Sun, 11/11/2012 - 09:48 | 2969603 thomasincincy
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Sun, 11/11/2012 - 13:20 | 2970098 knukles
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I been sayin ' it for some time now...
They gonna be runnin' out of treasuries...
They gonna be runnin' out of MBS
Next stop, a muni buying binge.

To QE or Not to QE, that is the question.
And since the Bernaks, Krugmans and Obies of the world be in charge of the give away, higher tax, nobody work nation, what the fuck.... they're gonna Have to Fund the Muni Debt Market.

Free cash for any muni issuer

(Parri Passu with the Banks on the Moral Hazard Risk Measure)


Sun, 11/11/2012 - 09:29 | 2969533 Dr. Engali
Dr. Engali's picture

Hey Bill tell your clients the truth?....It's time to liquidate before rates go against you. Even if the fed manages to keep rates down you're screwed and you aren't going to be able to generate a real return thanks to inflation.

Sun, 11/11/2012 - 09:57 | 2969626 DUNTHAT
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Sun, 11/11/2012 - 10:03 | 2969641 RSloane
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It would be absolutely awesome to see Bill Gross on Squawk Box or Bloomberg, and while looking straight into the camera say, "Its time to liquidate. There is no real return possible."

Someone would have to perfom CPR on Becky and Cramer. Then we would see bankers leaping from tall buildings. The mask would be off and 'bread and circuses' would be over.

Sun, 11/11/2012 - 10:11 | 2969657 Dr. Engali
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That would be funny. Of course he would get crucified for the bloodletting in the market as a result of that statement. He might be forced to resign due to some new affair or something along those lines.

Sun, 11/11/2012 - 10:47 | 2969743 LawsofPhysics
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Epic, I'll get Becky, let Cramer go.

Sun, 11/11/2012 - 09:22 | 2969545 fonzannoon
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Gross is right about the result. Small raise in taxes and no spending cuts. This is Why Obama won overwhelmingly. Anyone retired will not see any reduction in benefits (they will just get crushed by inflation) and anyone young will grow up on the dole. It's everyone in between that is in the pressure cooker.

Sun, 11/11/2012 - 09:56 | 2969623 RSloane
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There is no solution to the fiscal cliff. There is nothing that congress nor the president are willing to do to avert our course. Having more back room discussions behind locked doors in congress will do nothing, but will be paraded as really working hard to find solutions. There are none.

+1 to you, Sir.

Sun, 11/11/2012 - 10:48 | 2969744 Everybodys All ...
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The answers are available.

Cut federal government spending drastically and grow the energy economy. This defies Obama's agenda and would require the acknowledgment of the failure in democratic ideology. That's not ever going to happen so prepare accordingly.

Sun, 11/11/2012 - 11:24 | 2969814 Spastica Rex
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Maybe growth is over.

Figure out how to run a steady state "civilization."

Haven't seen easy answers to that one, yet. 

Sun, 11/11/2012 - 16:08 | 2970465 blunderdog
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The fact that the answer is OBVIOUS doesn't imply that the solution is POSSIBLE.

Look--if you wanted to cook a squid the size of the state of Montana, all you'd have to do is boil the Mediterranean ocean. 

It's simple as pie...

Sun, 11/11/2012 - 09:59 | 2969625 zilverreiger
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Pimco senior VP Emons was on dutch tv just now with less extreme, boring general views

@27:00 (dutch)

Sun, 11/11/2012 - 09:59 | 2969631 JustObserving
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"Its a Grand Canyon"

No, it is a Marianas Trench.  US debt and unfunded liabilities rise by $23 billion every day - that is bigger than the Greek deficit for 2012 .  That is enough to buy more than 70% of all the silver bullion in the world everyday.

And nothing significant will be done to reduce this - it may be reduced from $23 billion a day to $22 billion a day by raising taxes by $400 billion a year.  Social Security and Medicare will not be touched.

The Fed will continue to print confetti to paper this problem.


Sun, 11/11/2012 - 17:00 | 2970574 Chuck Walla
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 Social Security and Medicare will not be touched.

Bull Shit. Obama has already looted 716 billion from the "trust fund" for Medi-care to finance Obamacare. More to come as this represents an amazing pool of money.  Seniors go first. Those Fabians truly believe in everyone producing as much as they consume or off you go with a "gentlemanly gas" as hoped for by George Bernard Shaw.


Il Douche has run his last campaign. he really doesn't give a shit from here on in....

FORWARD SOVIET!  to Detroit, America's Model Community.

Sun, 11/11/2012 - 10:12 | 2969662 mvsjcl
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If you stand at the precipice of the fiscal cliff, don't jump. Instead, yell as loud as you can, "My nuts are in a vise! Would you please stop turning!" You may hear a response that says, "Why the hell should I?"

Sun, 11/11/2012 - 10:13 | 2969666 Hubbs
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It's a strange paradox. The longer the politicians get away with kicking the can down the road, the more likely they are going to try to keep doing it.  From Psychology 101: A behavior will not continue unless it is reinforced.

Sun, 11/11/2012 - 10:16 | 2969676 Hubbs
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Addendum: will not continue by a rational thinking person.  Hence Einstein's definition of insanity as the exception.

Sun, 11/11/2012 - 13:04 | 2970054 nodhannum
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"From Psychology 101: A behavior will not continue unless it is reinforced."  Tell that to the Bernak.  He keeps printing with decreasing or no results to speak of.

Sun, 11/11/2012 - 15:52 | 2970425 Hubbs
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Bernank is the errand boy who gets paid big tips for doing what he is told: by the politicians to keep this train on the tracks as long as possible.

Sun, 11/11/2012 - 10:30 | 2969700 alentia
alentia's picture

I do not really understand all the fuzz with "Fiscal Cliff". It is absurd and how it is portrait by politicians, media and so called economists.

Of course wall street does not like "Fiscal Cliff", they need cash flowing from the US Gov./Fed to their long positions.

Is not it the same what EU imposing on Greece? Reduction of Gov. spending and increase in taxes? How is reduction in Gov. spending bad for the economy?

Or is it, that all US economy is dependent on Gov. Spending? Is it the same as taking "smart money" from US entrepreneurs and putting them into hands on bureaucrats, who does not know what ROI is and why it is needed?

Sun, 11/11/2012 - 10:57 | 2969762 Orly
Orly's picture

Taking them off the teat...

I'm with you, I say do it already.  We'll sort it out later.


Sun, 11/11/2012 - 12:47 | 2970014 dark pools of soros
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it is called conditioning the prisoner

Sun, 11/11/2012 - 13:11 | 2970075 Bicycle Repairman
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This is what the political class does.  It their only job.  They don't "decide".  They keep the rabble in line as cheaply and effectively as possible.  Mainly by controlling your mind.  The job has nothing to do with their beliefs in constitutions or morality or ideology..  Even evil ideologies. Just keep the rabble in line.  Cheaply.

Sun, 11/11/2012 - 16:12 | 2970483 blunderdog
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    Or is it, that all US economy is dependent on Gov. Spending?


Sun, 11/11/2012 - 10:41 | 2969729 LawsofPhysics
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How does one manage debt that cannot and will not ever be repaid?

Sun, 11/11/2012 - 13:12 | 2970079 Bicycle Repairman
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You keep rolling it over and juicing the debtor.  Ever do any loansharking?

Sun, 11/11/2012 - 11:02 | 2969772 orangegeek
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There's about 700 TRILLION - you read that right - in unfunded liabilities globally.  That's the bottom line.


The planet is leveraged out the wazoo.  Call it a cliff, or building ledge or a big pile of poo, it's huge and being gamed and when the right pin gets pulled, we are going to have a crash like never seen before.


Markets are always leading, not the economy.



Sun, 11/11/2012 - 11:33 | 2969850 Spastica Rex
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Turns out the future couldn't pay and the future is now.

Sun, 11/11/2012 - 11:03 | 2969775 Dre4dwolf
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Everyone quick, spend your money on alcahol before the tax man comes, when they ask you where your money is, say you got drunk and gambled it away.


Sun, 11/11/2012 - 11:20 | 2969807 Dadburnitpa
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Another blinding flash of the obvious. 

Sun, 11/11/2012 - 11:25 | 2969822 Lost Wages
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I wish it was still the 80s when all we had was a Fiscal Cliff Huxtable.

Sun, 11/11/2012 - 12:07 | 2969913 CrashisOptimistic
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In the 80s you had cheap oil, which is the foundational explanation for everything.

Cheap is defined as low energy requirement in joules to extract joules from the ground.  That will never be true again and the direction for society is down, forever.

Sun, 11/11/2012 - 13:16 | 2970090 Bicycle Repairman
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So this is the absolute end of science? 

We know everything now? 

We pulled back the curtain, saw G-d and yawned? 

The 19th century was hell on earth?

Some pulled the wrong switch and the sun went out?

Sun, 11/11/2012 - 14:09 | 2970218 CrashisOptimistic
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The 19th century didn't have 7 billion people whose calories depend on oil.

The sun will go out for 6 billion of them.

Sun, 11/11/2012 - 16:39 | 2970531 Bicycle Repairman
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If peak oil is true and I don't believe it, it will be a very slow process offset by more technology.  More oil will be targeted for food and less for pointless transportation and war of which there is way too much right now.The world's birth rate is cresting and soon lack of procreation will start reducing the world's population.  So, sorry, no massive famine.

Sun, 11/11/2012 - 11:31 | 2969842 PUD
PUD's picture

In the final analysis staying the course (status quo) is equal to living within our means. Staying the course means exponential deficits and debt while living within our means equals job losses and depression. It's like cancer. Do nothing and die, do massive chemo and probably die.

Sun, 11/11/2012 - 11:35 | 2969851 Mr Pink
Mr Pink's picture

or Cliff Clavin

Sun, 11/11/2012 - 12:12 | 2969890 virgilcaine
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Anyone know when this rate rising thing is to happen?. it's been 30 Years of lower rates.. still waiting. Maybe rates go to zero to reflect it's value? The Music is  still playing but it's the Titanic Band! Enjoy that music... lalla..

Sun, 11/11/2012 - 13:18 | 2970095 Bicycle Repairman
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"Anyone know when this rate rising thing is to happen?."

After everything unravels, so you'll have plenty of advance warning.

Sun, 11/11/2012 - 12:10 | 2969919 tongue.stan
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Deep Thoughts

"I'm rich enough, I'm rich enough, and doggone it, I'm really rich!"

"If I come back as an animal in my next lifetime I hope it’s some type of parasite because this is the part where I take it EASY."

"What is it that makes a complete stranger dive into an icy river to save a solid-gold baby Maybe we’ll never know."

"I guess the hard thing for a lot of people to accept is why God would allow me to go running through their yards yelling and spinning around."

"I can picture in my mind a world without war a world without hate. And I can picture us attacking that world because they’d never expect it."

"I hope that someday we will be able to put away our fears and prejudices and just laugh at people."

"It’s easy to sit there and say you’d like to have more money. And I guess that’s what I like about it. It’s easy. Just sitting there rocking back and forth wanting that money."

"If I was the head of a country that lost a war and I had to sign a peace treaty just as I was signing I’d glance over the treaty and then suddenly act surprised. ‘Wait a minute I thought WE won’"

"If you think a weakness can be turned into a strength I hate to tell you this but that’s another weakness."


I could copy and paste all day, but at some point I have to get out of bed.

Sun, 11/11/2012 - 12:24 | 2969958 a growing concern
a growing concern's picture

 "I guess we were all guilty, in a way. We all shot him, we all skinned him, and we all got a complimentary bumper sticker that said, 'I helped skin Bob.'"

Sun, 11/11/2012 - 12:16 | 2969936 Perdogg
Perdogg's picture

How do you embed a tweet like that?

Sun, 11/11/2012 - 12:24 | 2969961 San Diego Gold Bug
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$1800 gold by the end of November!!  Get your phys NOT paper gold.

Sun, 11/11/2012 - 13:08 | 2970068 disabledvet
disabledvet's picture

Just because the Government ignores you doesn't mean your forgotten.

Sun, 11/11/2012 - 13:20 | 2970100 Joebloinvestor
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China just watches and continues to build up its' gold holdings.

When the music stops and the US doesn't have a chair left to sit on, we will stare blankly and question,"How did this happen".

It happened because the US is stupid enough to believe that because it is the current "reserve currency" it can (and it does) get away with pulling some of the stupidest shit in the name of politics.

We are also stupid enough that we think we can save ourselves from any disaster brought about from a previous administration.

That will go away when we are no longer the reserve currency and the wealthy have left.

I do not forsee the un-employment #'s getting better or the deficit being reduced.

Freebies for everyone who will be able to vote (for the next socialist agenda).

As the public sector increases........

Sun, 11/11/2012 - 13:39 | 2970139 Let The Wurlitz...
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It is a little late for your outspoken courage Bill.  Why dont you go back to blowing Bernanke dumb ass.

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