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‘Fiscal Cliff’ Distracts As ‘Fiscal Abyss’ In Japan, UK and U.S. Cometh

Tyler Durden's picture




 

From GoldCore

‘Fiscal Cliff’ Distracts As ‘Fiscal Abyss’ In Japan, UK and U.S. Cometh

Today’s AM fix was USD 1,658.75, EUR 1,259.68 and GBP 1,031.37 per ounce.
Yesterday’s AM fix was USD 1,655.25, EUR 1,247.65 and GBP 1,022.96 per ounce.

Silver is trading at $30.16/oz, €22.97/oz and £18.79/oz. Platinum is trading at $1,533.70/oz, palladium at $701.00/oz and rhodium at $1,040/oz.

Gold climbed $4.10 or 0.25% in New York yesterday and closed at $1,664.20/oz. Silver slipped to $29.685 in London, but it rose to a high of $30.466 in New York and finished with a gain of 0.8%.

Currency Ranked Returns in US Dollars – (Bloomberg)

Gold pared back early gains and edged down on Friday and tick tock goes the US “fiscal cliff” clock as time is running out for the somewhat irrelevant New Year’s deadline. 

Gold bullion prices are on target for their first weekly gain in a month after the sharp fall in December (-3%)  led to bargain hunters buying the dip. Gold bottomed on December 29th last year prior to very strong gains in January 2012 and we believe a similar pattern may be seen again this year. 

The yellow metal looks set to rack up its 12th straight year of gains on low to zero interest rates, concerns of the eurozone debt crisis and diversification into bullion by central banks.

2013 should see global gold demand grow on further strength from China and a recovery in India, helping the precious metal continue its bull run into its 13th year, according to the World Gold Council. 

U.S. CFTC commitment of traders’ data is at 1930 GMT today.

President Obama meets congressional leaders from both parties regarding the fiscal cliff and if a deal isn’t struck it will likely fuel safe haven buying of gold. 

Negotiations to avert the ‘fiscal cliff’ offer great political drama, but they won’t solve America’s looming budget and debt crisis and may cast the nation into another recession or worse.

A deal is likely to be done but any deal will be another cynical exercise of kicking the can down the road while failing again to address the root causes of the debt crisis which is too much debt at all levels of American society.


Gold Spot $/oz, 1 Year – (Bloomberg)

The political and media side show that is the so-called “fiscal cliff” will soon be overshadowed by the appalling and rapidly deteriorating situation regarding the U.S. national debt. 

Treasury Secretary Timothy Geithner has alerted Congress that the nation will once again hit the debt ceiling on Monday, but that his department can take “extraordinary measures” to keep paying the bills for another few months.

Incredibly, the debt ceiling was raised from $14.294 trillion in August 2011, to its current level of $16.394 trillion. Thus in the span of only sixteen months, the Obama administration has added a whopping $2.1 trillion to the national debt.


Silver Spot $/oz, from Oct. 2011 – (Bloomberg)

The U.S. federal deficit is now exceeding $1 trillion dollars every year —up from $161 billion in 2007, the last year before the financial crisis. Spending is up some $1 trillion, as outlays for Social Security, Medicare, Medicaid and other entitlements have increased by an amount equal to the entire 2013 military budget – a budget which may again surpass the combined military expenditure of every other nation in the world.

U.S. unfunded liabilities are now estimated at between $50 trillion and $100 trillion and by the end of the decade (in less than just 7 years), runaway entitlement spending will require shutting down the military or crippling many other vital domestic spending programs to head off massive deficits that will likely lead to a dollar crisis and significant inflation.

No matter what deal is eventually agreed, whether before or after the new year, it will at best nibble at the edges of the trillion dollar annual deficits that are being piled up.

While all the focus has been on the so called U.S. ‘fiscal cliff’, amnesia has taken hold and many market participants have forgotten about the far from resolved Eurozone debt crisis – not to mention looming debt crisis in the UK and Japan.


Cross Currency Table – (Bloomberg)

In Japan, the national debt is seen topping ¥1 quadrillion by the end of March 2013. A policy of money printing pursued for a decade has failed abysmally and now politicians look set to pursue currency debasement in an even more aggressive manner – with attendant consequences.

The UK is one of the most indebted countries in the industrialised world - the national debt now stands at more than 1 trillion pounds ($1.6 trillion) and total debt to GDP in the UK remains over 500%. 

Gold is traditionally sought out as a safe-haven and inflation hedge that investors diversify into in times of trouble. This is because throughout history, those who own physical gold have been protected from financial, economic and monetary crisis.

Also, much recent academic research has shown gold is a proven safe haven asset.

Gold has lately been behaving like any risk asset. However, buyers should continues to focus on the long term as gold ownership will protect people from the fiscal abyss facing major economies and currencies internationally in the coming years.

NEWSWIRE
(Bloomberg) -- Silver ETP Holdings Expand to Record 18,915.75 Metric Tons
Assets in exchange-traded products backed by silver rose to an all-time high of 18,915.75 metric tons yesterday, data tracked by Bloomberg showed.

(Bloomberg) -- Economist Dennis Gartman Says He’s Buying Gold Priced in Yen
Gartman says he bought bullion priced in euros yesterday.

(Bloomberg) -- Gartman Buying Gold Again in Euros and May Add to Purchases
Economist Dennis Gartman is buying one unit of gold in euros today.

A close above 1,265 euros this week “would force us to add to the position,” Gartman said in his daily report today.

(Bloomberg) -- Shanghai Gold Exchange to Raise Margin Requirements for Holidays
The Shanghai Gold Exchange will raise the margin requirement for gold contracts to 13% from 12% starting with the settlement on Dec. 28, according to a statement posted on the bourse’s website today.

The bourse will widen the trading bands for gold contracts to 10% from 9% from Dec. 31, the statement says.

Silver contract margin requirement will be unchanged and the trading bands will be increased to 13% from 12%, it says.

The exchange made the changes to prevent risks during market closure from Jan. 1 to Jan. 3, the statement says.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold on track for best weekly gain since November - Reuters

Gold Bulls Strongest Since August as Funds Retreat - Bloomberg

Yen Weakens to 28-Month Low as Asian Stocks, Commodities Advance – Bloomberg

US Mint Bullion Revenue Falls 29%, American Silver Eagle Generates Loss of $4.4 Million – Coin Update

COMMENTARY

Video: Silver Will Be #1 Commodity Pick of 2013 - Bloomberg

Why Smart Investors Buy 50 Times More Silver – Resource Investor

Twenty Reasons to Buy Silver for the Long-Term - SilverSeek

The Coming Isolation of US Dollar - GoldSeek

Audio: Day Recommends Gold, Discusses Monetary Policy - Bloomberg

 

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Fri, 12/28/2012 - 09:16 | 3101234 GetZeeGold
GetZeeGold's picture

 

 

Pull one stick.....and the whole thing comes down.

Fri, 12/28/2012 - 09:41 | 3101271 negative rates
negative rates's picture

They did, anything but a knee jerk reaction, just won't do. So cliffing through the forest a we will go!

Fri, 12/28/2012 - 11:41 | 3101672 Snakeeyes
Snakeeyes's picture

Distraction is right. Auto spending cuts only 6% of the 2012 Federal deficit!!!!!!! Politicians will NOT cut spending!!

http://confoundedinterest.wordpress.com/2012/12/28/the-fiscal-cliff-and-...

Fri, 12/28/2012 - 10:26 | 3101387 Room 101
Room 101's picture

And we're doomed I tell you.  DOOOOOOOMED!

 

Fri, 12/28/2012 - 11:02 | 3101512 Peter Pan
Peter Pan's picture

Somewhere along the line, people's expectations and lifestyles and politicians' promises and idiotic policies exceeded the capacity of the system to accommodate.

Somewhere down the line, all people will realise what personal responsibility is because the free lunch is about to become a museum piece.

Fri, 12/28/2012 - 09:16 | 3101237 JackT
JackT's picture

Cliff Jumping Adrenaline Junkies maybe markets will rally on a last minute save. Everyone loves a hero.

Fri, 12/28/2012 - 10:58 | 3101497 HurricaneSeason
HurricaneSeason's picture

The last minute save is the only way to make it into the history books.  Who makes it from passing the annual budget (the main job of congress)?  It's to the point where they have to develop their own herculean task, that they can solve at the stoke of a pen, then fail at that. It's like a kid saying "Watch this" as he rides his bicycle wheelie into a tree. We should have our cameras ready.

Fri, 12/28/2012 - 09:18 | 3101239 SheepDog-One
SheepDog-One's picture

Fiscal 'Black Hole' next.

Fri, 12/28/2012 - 09:36 | 3101244 Mentaliusanything
Mentaliusanything's picture

Is Boils down to this and this only

“Consensus: “The process of abandoning all beliefs, principles, values, and policies in search of something in which no one believes, but to which no one objects; the process of avoiding the very issues that have to be solved, merely because you cannot get agreement on the way ahead. What great cause would have been fought and won under the banner: ‘I stand for consensus?” 
 Margaret Thatcher - She had a Sausage and two veg that would make Rasputin Blush

America you on a hiding to Nothing because they stand for nothing

Remember this is true

“I think we've been through a period where too many people have been given to understand that if they have a problem, it's the government's job to cope with it. 'I have a problem, I'll get a grant.' 'I'm homeless, the government must house me.' They're casting their problem on society. And, you know, there is no such thing as society. There are individual men and women, and there are families. And no government can do anything except through people, and people must look to themselves first. It's our duty to look after ourselves and then, also to look after our neighbour. People have got the entitlements too much in mind, without the obligations. There's no such thing as entitlement, unless someone has first met an obligation.

Paging The CON gress

Fri, 12/28/2012 - 10:06 | 3101331 eclectic syncretist
eclectic syncretist's picture

I gave you an up vote because I completely agree in principle, but I have to say that since the government and Fed have been parasitizing the citizenry for 100+ years it's only an ironic form of justice if the roles reverse a bit, and if there are so many people on the government dole, it's only because the government has allowed and facilitated it.  After all, the government has broken the spirit of the Constitution by consolidating the people's power unto itself. What is going on is hugely unfair to those of us who believe in the spirit of the Constitution, but the government is not interested in fostering fairness anyway.

Fri, 12/28/2012 - 09:25 | 3101247 dick cheneys ghost
dick cheneys ghost's picture

Hope that war with Iran starts soon, so we can continue printing money out of thin air, so that we can continue with trillion dollar deficits so that we can continue killing women and children so that our leaders can continue spying on us so that bankers can continue making huge bonus's

Fri, 12/28/2012 - 09:39 | 3101270 rsnoble
rsnoble's picture

Well you're most certainly on someone's shitlist now. LOL.  Of course it's probably safe to say the gov't computers have already combed this website and others and we're all in the database of terrorists by now.  

If they keep developing the technology soon they will have justification to arrest anyone they want of course combined with a law saying they need no justification we're just screwed.

They should just come to the conclusion that the entire planet's population is criminal and we should just consider the entire world a prison instead of playing all these games of keeping people behind fences etc.  The logical conclusion would be for the elite to move to Mars as that would be far easier and safer than moving all of us to Mars.  Too bad the elite aren't all overly smart or we could probably convince them of that.  Truth be told that's probably what all the politicians hype over space colonies is about, when shtf they aren't going to be able to get far enough away.  Sorry Gingrich, but your sorry ass will be one of the last ones off this rock.

Fri, 12/28/2012 - 09:44 | 3101277 negative rates
negative rates's picture

Not really, if you could see the jews and the iranians juggling the hot potatos, you would see they have no time to monitor anything but there own balls.

Fri, 12/28/2012 - 10:52 | 3101475 Winston Churchill
Winston Churchill's picture

Just as well I'm already dead in that case.

Fri, 12/28/2012 - 10:13 | 3101348 eclectic syncretist
eclectic syncretist's picture

The Fed doesn't print money.  Lawful money is coined according to the constitution.  The Fed issues notes that can legally be used for payment of debts.  I wish someone would have asked Beerstanke if Fed notes were lawful constitutional money, in addition to asking him about gold and other precious metals.

There is no money in our system, in the sense that money would represent a true asset.  Our system is completely based on debt.  What you are calling money is just a note that represents a debt to you.  This may sound like a bunch of confusing semantics, but you have to remember that what it does is creates a system that allows the banks to skim interest on all the "money" out there.  That is the crucial difference.

Fri, 12/28/2012 - 09:26 | 3101249 Money 4 Nothing
Money 4 Nothing's picture

Soo, do I have this right? The bankers commited many financial crimes aka stamping CDO's AAA... The tax payers bailed them out, inflation kicked in, forclosures went on the rise and now were facing the largest austerity package aka additional taxes ever witnessed in History? What's wrong with this picture?

Fri, 12/28/2012 - 09:45 | 3101283 negative rates
negative rates's picture

Renting! The second oldest profession in the world.

Fri, 12/28/2012 - 10:32 | 3101405 eclectic syncretist
eclectic syncretist's picture

What's wrong with this picture: the banks control the government and hence you.

Sat, 12/29/2012 - 00:36 | 3104176 Money 4 Nothing
Money 4 Nothing's picture

Thanks for reminding me of my place in the Grand scheme. I think I'm entitled once in a while for some reason?

Fri, 12/28/2012 - 09:26 | 3101250 Quinvarius
Quinvarius's picture

I don't think people realize how much 1 trillion is yet.

Fri, 12/28/2012 - 09:36 | 3101262 Vincent Vega
Vincent Vega's picture

Size wise it's about the same as a U.S. dollar. I know because I have a $10 Trillion Zimbabwe note. I think we'll all be finding out soon enough.   ;- )

Fri, 12/28/2012 - 09:42 | 3101273 Dutch_Gemma
Dutch_Gemma's picture

Did you ever try buying anything with a Zim dollar? There were warnings all over the Transvaal that said such things shouldn't be flushed. 

The very real issue is when there is a queue for the solitary loaf of bread in a Harare supermarket, yet behind the shop is a South-African registered lorry selling bread at 30x the official price - but only for Rands.

Fri, 12/28/2012 - 11:10 | 3101547 HurricaneSeason
HurricaneSeason's picture

1 Trillion dollars=3 Million dollars.  I think I saw a Trillion dollar chip in a casino one time, they're pink.

Fri, 12/28/2012 - 09:29 | 3101253 Benjamin Glutton
Benjamin Glutton's picture

"Only a crisis-actual or perceived-produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable."

 

Milton Friedman's Capitalism and Freedom (fortieth anniv. edition)

Fri, 12/28/2012 - 09:29 | 3101254 Bastiat009
Bastiat009's picture

So fucking tired of these end-of-the-world stories that NEVER come true. If you vote for X, your world will end. If you vote for Y, your world will collapse. The euro is dead. The dollar is dead. The dollar is king. Japan will buy the world. Japan will fall into the sea ... and so on and on and on ...

Fri, 12/28/2012 - 09:31 | 3101257 GetZeeGold
GetZeeGold's picture

 

 

It's all designed to blow your mind. Give them props....they put a hell of a lot of effort into it.

Fri, 12/28/2012 - 09:37 | 3101266 awakening
awakening's picture

Baffle with bullshit; I'm pleased they are too distracted with this task to cause me more grief via more immediate means.

Fri, 12/28/2012 - 09:32 | 3101259 Super Broccoli
Super Broccoli's picture

"experts" don't actually have a clue :-)

mathematicaly and on the long term we should collapse since we don't have a sound economy. Problem is nobody knows when since our economies are so much interconnected noone wants to pull that trigger

Fri, 12/28/2012 - 09:44 | 3101280 youngman
youngman's picture

But they are true...just because the market has not crashed does not make them untrue...to me the tragic story of today is the Spain Bankia story...the bankers lied again and stole 350,000 investors money....bankers won that battle....but the people will win the war....the bankers did not know the losses were as big as they were....I do...I know right now they are going to lose more money....they have not dropped the values of the real estate yet......

But just another straw on the camels back

Fri, 12/28/2012 - 09:46 | 3101289 negative rates
negative rates's picture

How bout the king is dead, long live the king!

Fri, 12/28/2012 - 11:36 | 3101649 yrbmegr
yrbmegr's picture

And everything that ever happens was predicted on this site 3-9 months ago.

Fri, 12/28/2012 - 09:36 | 3101265 krispkritter
krispkritter's picture

Japan: One quadril-Yen

Finally, a number bigger than our measly trillions! We have a new goal!

FORWARD!

USA! USA! USA! 

Fri, 12/28/2012 - 09:37 | 3101267 Go Tribe
Go Tribe's picture

Its the Jenga Budget.

Fri, 12/28/2012 - 09:44 | 3101279 Dutch_Gemma
Dutch_Gemma's picture

What is it about American Corporations that don't like paying taxes?

 

Google registered in Delaware with off-shore banking. Legal fraud. They couldn't do that in Germany where they have ot pay taxes if they are registered in the country.

 

Time for some equality. 

Fri, 12/28/2012 - 09:44 | 3101281 Mercury
Mercury's picture

Obama's primary goal is to knock the USA down to size on the world stage.

Fri, 12/28/2012 - 09:47 | 3101291 GetZeeGold
GetZeeGold's picture

 

 

Dammit.......I knew it.

Fri, 12/28/2012 - 10:14 | 3101320 Mercury
Mercury's picture

It’s not a communist thing or a racial thing (per se) it’s an anti-colonial thing. In Obama’s (and every mentor he’s ever taken seriously in his life –I read his books!-) view, America in particular is “#1” because it stole stuff from the rest of the world.  Maybe you think this view has some truth to it, maybe you think it’s a immaterial but Obama believes it 100%.

 

He wants to "fix" that and if he leaves office with 100% of Americans hating him but the vast majority of the world's "downtrodden and dispossessed" loving him, he will consider his presidency a tremendous success. 

 

It’s not about the environment it’s about making crippling America’s ability to produce (foreign drilling ‘yes’, domestic shale ‘no’). It’s not about world peace it’s about making America weaker (unilateral nuclear disarmament). It’s not about equality within America it's about making Americans’ standard of living more equal with the rest of the world.

I think both the Left & Right tries to fit Obama into preconceived boxes and they’re both missing the bigger picture. There are many other moving parts of course – The East is rising and the West’s not-so-new welfare state is unsustainable. But ask yourself: If the new CEO of Apple turned out to be most concerned with bringing Apple down to size in the consumer electronics space, so as to make the world/market more “fair” – what would you do with the stock?

Fri, 12/28/2012 - 11:28 | 3101505 rwe2late
rwe2late's picture

Mercury,

Obama & co. are NOT about helping the "downtrodden and dispossessed". The invasions, occupations, and destabilizations are not "anti-colonial".The expanding US military bases, "war on drugs", military expansion into Africa, and support for globalization "free trade" is not "anti-colonial". Divide-and-conquer Balkanization, Kosovo, and Bahrain are not "anti-colonial".

It is true the American people being sacrificed, not for the "downtrodden", but for the US Empire.

And the Empire is now global. The corporations that benefit are global, whether military contractors or agri-businesses. The financial institutions are global. The Pentagon is global. It is only a partial truth to recognize that average Americans are being pushed down. Yes, it true that the oppressions of the Empire are being more and more visited at home, but it is NOT in order for those oppressions to be visited less and less abroad.

Obama is a front man, a con man, for global corporations, financial tycoons, and the power of empire, and he is no friend of the "downtrodden” majority - at home or abroad.

Fri, 12/28/2012 - 12:04 | 3101721 Mercury
Mercury's picture

He wants a global authority,  not the American Empire to dominate the globe.  How does American nuclear disarmament and a much smaller military make the American Empire more powerful?

But Obama is not Superman, there are other powerful interests within the USA who conflict with Obama's and yes, the world gets more "global" every day but sorry, the guy who sent back imperial badass Winston Churchill's statue on day one is not all about military expansion into and domination of Africa - unless certain elements of such serve a larger purpose or he feels compelled to do so for other reasons. That's life on the world stage.

Part of his vision of "global" is to level everyone out -across the globe- as much as possible and to make them answerable to "global" authority.  That is not the same thing as giving priority to America's interests or those of her citizens. When America is much weaker and her people are much poorer, the giant, powerful, multi-national corporations who dominate production, trade and finance won't be "American" in any meaningful sense.

Fri, 12/28/2012 - 12:17 | 3101802 rwe2late
rwe2late's picture

 Prioritizing the US Empire over the "global authority" is a distinction without a difference. Prioritizing the "American Empire" is not the way to benefit US citizens.

Indeed, there is the globalists' dream of transitioning the US Empire into a Western or even world-wide empire.

Obama primarily works to promote the US Empire, and secondarily that also advances the globalist dream.

But it is a mistake to interpret that dream as an "anti-colonial" plot to benefit the "downtrodden". 

 

Fri, 12/28/2012 - 13:15 | 3101962 Mercury
Mercury's picture

"US Empire" and "globalist dream" are antithetical and are in no way analagous to: "I would like a swimming pool" and "I would also like a pony."  So, there is no primary/secondary goal here.

If/when US authority "transitions" to a world authority it will not be an upgrade for US citizens. I prefer that the the US were not an empire but frankly there are much worse political entities to be a citizen of.  Obama's endgame vision is one of them.

Fri, 12/28/2012 - 11:08 | 3101538 karzai_luver
karzai_luver's picture

well spoken statist tool..it's a shame to see such idiocy spouted here.......

 

Obama is a distraction a fool on the hill, while the same old shit is dumped on you.

He is a war criminal and worse. But, that's part of the job.

 

Nuke disarm........?? what rock do you live under.what a fukin hoot.

As to your Apple spoof, well if one judges by the market reaction to "leaner and meaner" , one would BUY BUY BUY!

 

 

Fri, 12/28/2012 - 13:09 | 3101925 rwe2late
rwe2late's picture

 

Mercury,

How can anyone take seriously the rant you cite by Yoo & Bolton about Obama trying to make the US disarmed and defenseless?

Instead:

... even if the START treaty is fully implemented, the US will have a massive nuclear arsenal—more than 1,500 deployed nuclear weapons and around 5,000 warheads—that can obliterate any potential rival or alliance of rivals.

…the Obama administration is committed to spending at least $600 billion over the next decade to modernise weapons production facilities and delivery systems. These include a new generation of land-based ballistic missiles, a new fleet of nuclear-armed submarines and 100 new strategic bombers.

What is under way is not nuclear disarmament, but an arms race. The key index of this new build up is not the absolute number of nuclear warheads, but the sophistication of the delivery systems and their ability to evade detection and defensive measures. 

 

http://www.globalresearch.ca/nuclear-terrorism-obama-s-nuclear-disarmament-hoax/30022  

Nuclear weapons tests resumed by US:

 

http://www.globalresearch.ca/unreported-by-the-media-americas-tests-of-nuclear-weapons-the-truth-is-a-bitter-pill/5315513  

Fri, 12/28/2012 - 13:25 | 3102005 Mercury
Mercury's picture

So, Obama is "committed" (under pain of...what?) to swapping out old and obsolete toys for new shiny ones and America's warmongers aren't happy about it. Duly noted.

Fri, 12/28/2012 - 09:45 | 3101284 tawse57
tawse57's picture

The UK is fine - we did not have a house price bubble crash like the US, Spain or Ireland and our house prices are now amongst the highest in the world.

So much so that the UK's media cannot stop printing stories about house prices rising and rising.

Of course, it now means that many key workers such as teachers, nurses, fire fighters, street cleaners, shop workers, etc, etc, cannot afford houses but so what. In London the house prices are so high that doctors and senior mangement workers cannot afford to buy houses.

So there is no need to worry here - before long all the British people will be living underneath bridges and all the British houses will cost a million pounds at least... and be owned by Chinese, Russian and other millionaires and billionaires.... and all the rich Greeks, Spanish, Italians, etc, avoiding paying tax in their own countries.

UK economy - safe as houses!

Fri, 12/28/2012 - 10:15 | 3101354 Mercury
Mercury's picture

London is a city-state. The UK is a geographical designation.

Fri, 12/28/2012 - 11:32 | 3101629 tawse57
tawse57's picture

Very true. Eventually the people of the UK will rise up and remove the city state of London from our shores.

Fri, 12/28/2012 - 10:17 | 3101360 Orly
Orly's picture

Safe as houses, safe as mother's milk.

Cool as November, smooth as China silk.

The problem in Britain wasn't with domestic real estate.  It was with all those nurses and firefighters who were encouraged to go to the Costa del Sol to buy their holiday dacha that got the British banks in trouble.

England today reminds me of New Jersey in the late eighties.  No one can afford to buy a house as prices just ramp vertical.  Meanwhile, the governors are pinching more from your pocket.  The only people left in New Jersey when I took off were people who commuted to the city every day to work on Wall Street and the only thing flourishing in the whole state were the ghettoes around Orange and Trenton.  In your face, brazen yobboes coming out and saying they're just going to take more...and laugh about it.

Doesn't sound like a place to spend my "golden" years...

:D

Fri, 12/28/2012 - 11:38 | 3101655 tawse57
tawse57's picture

What you describe is now the South East of England - basically only the super rich live in London in the 'nice' parts and loads of other Britis now commute several hours per day just to get into London to earn the money so they can just afford a house anywhere between 50 and 150 miles away from their place of work.

The only others who can afford to live in London are people on benefits living in increasingly ghetto like estates often populated by people who were not born in the UK, do not speak English and who have no loyalty to the UK beyond their benefit cheques.

London, arguably, is no longer a British city.

I think if the US lowered its visa requirements for Brits that there would be an exodus of the brightest and best from the UK to the US. We may even help to get your housing market going again.

 

Fri, 12/28/2012 - 09:45 | 3101286 Sudden Debt
Sudden Debt's picture

buying some GLD calls are good to make some january gains to buy the real stuff for almost free thanks to Obama!

Fri, 12/28/2012 - 09:46 | 3101287 GreatUncle
GreatUncle's picture

The inveitable end was to start using Keynes, inflate and deflate the debt away and only worry about paying the interest never the principal.

The 3 busts...

1. Kept it up for so long now, abused it so the interest now becomes the straw that broke the camels back! That's a bust!

2. The joke is it inflated economies (UK,Japan, USA ... EU) so far above many in value you have to shed value just to regain lost competativeness - Thats a bust!

3. Contract the economy and you get a reduced tax take. - Thats a bust.

Keynes showed us a financial trick is all, but it never resolved the root cause even way back then.

So which bust would you like 1,2 or 3? Personally I think 2 gives everybody a slim chance and you will likely end up with it even if you choose 1 or 3.

Fri, 12/28/2012 - 09:52 | 3101301 MFLTucson
MFLTucson's picture

Gold has lately been behaving like any risk asset.

Because the entire finacial markets are a fraud compliments of Ben Bernanke and his tribal members! 

Fri, 12/28/2012 - 09:56 | 3101311 youngman
youngman's picture

gold will be kept down until January 1st.....the Central bankers cannot have gold having a better return than their paper monies...

Fri, 12/28/2012 - 09:57 | 3101313 eddiebe
eddiebe's picture

Here is a short sentence that, once read, will tell you all you need to know about the state of affairs in the world and you will not need to read one more article on the subject of politics or economics here or anywhere else. Ready? :

 

 Everything is all fucked up.

Fri, 12/28/2012 - 09:58 | 3101314 lolmao500
lolmao500's picture

Funny how they want to pass Sandy relief, which is $60 billion... and they want to pass it on Sunday.... without raising the debt ceiling. If they pass that, whatever Timmah is doing to extend the debt ceiling BS, wouldn't that send the US into default right away?? Or can Turbo Timmy steal more than $60 billion from the pension funds in the next 2 days?

Fri, 12/28/2012 - 10:07 | 3101334 Mentaliusanything
Mentaliusanything's picture

Yes we can! I Obama can pass a Camel through the eye of a Needle. 

(No camels were hurt during this exersise - Taxpayers are excluded under executive order)

Fri, 12/28/2012 - 10:16 | 3101356 GetZeeGold
GetZeeGold's picture

 

 

That's a very misunderstood passage actually. Back in the day they use to have a needle gate. That was the only way you could gain access to the city at night. A camel could go through it but you had to remove the pack from the animal for it to enter the dwelling.

 

So it just took a couple guys to defend the gate.....and everyone else could sleep tight. File it under crap you'll never use again.

Fri, 12/28/2012 - 10:42 | 3101429 Monedas
Monedas's picture

So besides the algebra .... the sandy ones invented the "24 hour Drive-Thru" window .... too .... defended by two guys with aluminum baseball bats ?

Fri, 12/28/2012 - 10:51 | 3101472 GetZeeGold
GetZeeGold's picture

 

 

Well they would but it turns out all the baseball bats were purchased by British citizens for the purposes of home defense.....kinda like you can't buy .223/5.56 NATO ammo around these parts right now.

Fri, 12/28/2012 - 10:14 | 3101351 Room 101
Room 101's picture

OK Tylers, we got it.  The financapocalypse is coming.  These articles are becoming a little like watching the Heaven's Gate cult in action.  And by gosh Hale-Bopp is coming!! (Complete with charts) 

So how 'bout some practical stuff like "A ZH Guide for Those Who Don't Wish To Slash Their Wrists In Anticipation Of the Financapocalyspe." 

Fri, 12/28/2012 - 10:43 | 3101444 TrustWho
TrustWho's picture

...if you think slashing your risk is an answer, you need to leave ZEROHEDGE! Can you imagine the courage our founding fathers had to face their challenge? None of us can until will face our challenge. I fear we Americans have lost our birthright.

Fri, 12/28/2012 - 11:12 | 3101555 karzai_luver
karzai_luver's picture

clearly by your posting, you have, coward!

 

Fri, 12/28/2012 - 11:14 | 3101561 Room 101
Room 101's picture

Exactly.  What I see unfortunately is article after article after article after article documenting the End Of The World As We know It, but little in the way of practical advice. Sure. On a long enough timeline our survival rate does drop to zero.  But how about trying to extend the length and quality of some of those timelines? 

Fri, 12/28/2012 - 12:15 | 3101795 TrustWho
TrustWho's picture

I argue it is happenning. People are home-schooling and doing a great job; however our failing schols and those in control fail to change. Where is the political pressure at local level. 

Some people are networking with people with local skills and preparing to leave the system. We can pay off our paper debts with a push of the button, but we need to be prepared to live within our country's resources. The new world countries have the best population densities and population to resources than any other place in the world.

Must avoid world war III. 

Fri, 12/28/2012 - 10:32 | 3101404 Monedas
Monedas's picture

Pull my finger .... and see what happens !

Fri, 12/28/2012 - 10:39 | 3101434 Chupacabra-322
Chupacabra-322's picture

This phony ponzi scheme golbal criminal economy is going to pop harder than Justin Beiber jacking off at a Kim Kardashian pic. 

Fri, 12/28/2012 - 10:49 | 3101469 Whiner
Whiner's picture

Big OL' River of Debt, He jes'keep Rollin along. He must know sumpthin', but He don't say nuttin', He jes keeps Rollin' along. What does he care if de world got troubles? What does he care if de land ain't free. He keeps on Rolin. He don't plant taters, he don't plant Cotten. Dem' dat plants 'em is soon forgotten. You and me, we sweat and strain, body all achin' and racked wid pain. But Old Man River of Debt keeps rollin. an Ah gets weary and sick of tryin'. im tired of livin but skeered of dyin'. But Old Man River he keeps on rollin along. Lift that bale. Ya gets a little drunk and you lands in jail. I gets weary and sick of trying, but OL Man River of Debt, he jes keeps Rollin along. Don't look up, don't look down. You don' dare make Bernanke frown! Bend yo knees and bow yo head and pull Timmah's rope until yore dead.

Fri, 12/28/2012 - 10:51 | 3101473 Peter Pan
Peter Pan's picture

The issues at the bottom of the fiscal cliff are the same as those at the top of the cliff.

So, will the US be willing or forced to let go of its gargantuan military budget?

In other words, will nations stop the behaviour that got them there in the first place?

 

Fri, 12/28/2012 - 10:58 | 3101499 Tombstone
Tombstone's picture

So the socialist welfare mongers are spending $130 billion a month to keep utopia afloat.  By the end of 2020, this works out to about another $12 trillion added to the debt.  Does anyone in the sane/rational/down-to-earth crowd think they will spend less in the coming years, deal or no deal?  If so, I have some shares in Government Everything to sell you.  Backed by Benny Bucks,  a whole lot of hope and change (as in nickles and dimes) and some good old fashioned rubles , how can you miss?

Fri, 12/28/2012 - 12:20 | 3101805 sbenard
sbenard's picture

This is precisely my sentiment. I've been thinking throughout this whole "fiscal cliff" debate since elections that it is just a distraction!!

The real looming monster is the debt black hole! US government debt is the Mother of all Bubbles! When that bubble pops, life will end as we have known it for the past half century! The term Depression will be an understatement!

And don't be surprised if it results in a major war, too, as
America is blamed by its enemies for the global economic collapse!

Fri, 12/28/2012 - 13:26 | 3101993 zebrasquid
zebrasquid's picture

This whole thing is like being in the room of an AA meeting -- everyone feels better and more hopeful about their future, because they are confessing they're alcoholics.

Someone outside the room, looking in, sees it for what it is:  A bunch of doomed losers.

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