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How Many Central Banks Does It Take To Generate 1% GDP Growth In 5 Years?

Tyler Durden's picture


By order of their various 'independent' masters, the world's central banks have "got to work" over the past few years. Running the printing presses under the guise of various multi-syllabic programs designed to optically lower interest rates and feed fungible resources to its banking systems - that will inevitably (surely) flow to the real economy and make everything right with the world. Well, perhaps the following chart will explain just how good a "job" they are doing with that real-world, real-economy recovery...


(h/t @Not_Jim_Cramer)


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Thu, 01/17/2013 - 11:55 | 3162417 CPL
CPL's picture


Thu, 01/17/2013 - 12:01 | 3162443 Lets_Eat_Ben
Lets_Eat_Ben's picture

A brilliant mind with a good heart has no place in this techno-nightmare. Many wise men (and women) have said that information is the ultimate resource. Hell, even Gekko would admit that. Well, in this version of the matrix, open source information is a cardinal sin.


Aaron Swartz - Young, brilliant, moral and courageous enough to try and change the function of the great machine. He wanted information to be a public utility, one that is free to be used by all. He was healthy, wealthy and wise...and so he hung himself?

Thu, 01/17/2013 - 12:05 | 3162458 kliguy38
kliguy38's picture

But of an old friend of mine once said......"kli there are hangings and there are the hangers....either way you are hanged"...........In this case it will remain closed on Aaron............

Thu, 01/17/2013 - 12:07 | 3162470 Stackers
Stackers's picture

Exponential bitches

Thu, 01/17/2013 - 12:31 | 3162574 Richard Chesler
Richard Chesler's picture

But Goldman's profits are soaring.

What part of God's work don't you understand you ungrateful peasants?


Thu, 01/17/2013 - 12:33 | 3162587 Xibalba
Xibalba's picture

did they get the VIX to 10 yet? 

Thu, 01/17/2013 - 15:43 | 3163490 NEOSERF
NEOSERF's picture

Hard to hoe the rows with a vampire squid on my face.

Thu, 01/17/2013 - 12:08 | 3162476 Lets_Eat_Ben
Lets_Eat_Ben's picture

My head is the noose already; as are many of ours.


And to the hangers: You are cowards! Know that for the rest of your shitty lives.

Thu, 01/17/2013 - 12:29 | 3162526 CPL
CPL's picture

No it will not.

His property rights to all systems intergration and management plus RSS is going to his parents.  The removal of open source statuses on certain products will be removed and charged through the nose to reflect the entire DoD budget.


Whoever killed him was incredibly stupid to understand what IP Aaron developed and now it's changing owners.  Change of owners, mean price change.  From open source, to closed and since they are all hooked on the crack of easy systems intergration with open source.  I predict layoffs.


Lots of them, to pay a single license of usage.  Site licenses will be available as well.  Departmental budgets must be presented prior to the price change to reflect the direct client cost.  No estimations will be given, the price will reflect 27.8% of any government client's gross budget.  That's that.  They wanted him dead, now there's the cost.

Here's where the kneecap for Aaron happens in typical passive agressive technology management.  Everyone has 6 months to migrate all of it once the changes are in effect.


Cough up 40 trillion dollars or no more updates and security holes stay open.  


Patches will be pushed with no notification or regression testing.


Patches and announcement will not sync up to fit into project plans.  Don't count on a patch tuesday...count on one every day, it might have release notes.




This one is my favorite.  Keep the level work around the same standard as the FAA is upholding.  No testing, won't even submit for peer review.  Claim we did, rubber stamp that fucker and deploy.  Then hold our collective professional breath to see how it breaks.

Thu, 01/17/2013 - 12:32 | 3162583 ParkAveFlasher
ParkAveFlasher's picture

Christ, I can't even imagine crimping RSS.  It's everywhere.

Thu, 01/17/2013 - 12:39 | 3162615 CPL
CPL's picture

Make plans to find something else then.  The price WILL be revised from Open Source to full on rape mode.  His parents are pissed.  Really pissed.

Thu, 01/17/2013 - 12:38 | 3162613 Never One Roach
Never One Roach's picture

Hey, leave 'm (the CB'ers) alone! It's hard work....all those 7 course dinners...champagne and hitting the 'print' button repeatedly.


Not evryone is cut out for that line of work.

Thu, 01/17/2013 - 12:13 | 3162499 CPL
CPL's picture

Yes, being the main architect and one of the most widely sought after professionals in the field of systems intergration and management is a heavy burden with all that money in past and future.  Aaron was obviously just wasn't happy with a close group of friends, a tight online community, money, girls falling over themselves to suck his king geek dick....


Yeah I don't believe the story either.  Neither do any of the Engineering Guilds..


Thu, 01/17/2013 - 12:16 | 3162516 Spastica Rex
Spastica Rex's picture

I thought he was gay.

And isn't free information like info-communism?

/sarc (wow, I never do that)

Thu, 01/17/2013 - 12:22 | 3162540 Dr. Engali
Dr. Engali's picture

What's up with the sarc tag? I know it's the free comment right? 

Thu, 01/17/2013 - 12:27 | 3162553 Spastica Rex
Spastica Rex's picture

Ahhh - because I have really deep feelings about this particular issue that prevent me from being a fully sardonic bastard. In the end, I don't think there is anything remotely funny about it.

Thu, 01/17/2013 - 13:06 | 3162720 CPL
CPL's picture

It's a hard pill to swallow that a happy 25 year old man with friends and a bright future regardless of some pissant kangaroo court case would decide to off himself.  Makes zero sense.  No letter either.

The one thing that is driving me crazy about it is Aaron had his place wired to the tits with cameras and video.  He's the RSS, broadband, multicast uber geek assuming that he didn't is naive, he invented it all (again 14 year old jedi knight).  

There is 300 points of video in 3D of the whole affair and my better's are keeping all the videos private.  Probably why the price change is coming.  As I've mentioned, his parents are spitting nails so are alot of very senior and powerful engineers.  Aaron had a lot of friends that understand his contribution to IM/IT/IS.  His death will be used as an example on how Engineers can pull the eyes, ears and wallets off the corpse of an enterprise if they are fucked with

It also means a company like Oracle, Microsoft, IBM are all now out of license and illegally using a product out of scope and cost to their projects.  And more importantly all of their clients are now also in deep shit because of the death of one man.  Like Apple can't keep it's shit together without it's chief architect guiding the technology.  Aaron guided all that is IM and interconnectivity which is a lot fucking bigger than all the companies put together.

This is how nuclear systems are managed.  This is how stock quotes are delivered.  This is how databases can mine for information.  That agent to carry the water is all owned by a single guy.  Aaron.  And the ownership has changed.  Risk on times infinity should be burned into their minds by the end of 2013.


Thu, 01/17/2013 - 13:56 | 3162981 Spastica Rex
Spastica Rex's picture

It's amazing. We are witnessing the death of truth.

Truth is the most precious thing to me.

Thu, 01/17/2013 - 12:37 | 3162601 CPL
CPL's picture

Meh, gay or straight, at conferences he always had some girls chasing him.  Maybe they were fag hags.  Anycase.  He's the 14 year old wizard that invented the sole reason we can get most databases, network gear and other junk out there to talk to each other in a agnostic manner versus the garbage before RSS.


14 and he invented that to develop the entire field of system information management.  Up until Aaron, well...I certainly hope everyone has a back up plan because after he was hero'd there is no replacement in the wings and all operational costs are going to become severely expensive.  Last job position I would recommend to anyone as of his death is CIO or Director.  

All your budget will belong to us, versus bases.  If people like being financially punished though, maybe that's the point. They need anyone using a database...ANY database to be run out of business.

Thu, 01/17/2013 - 12:51 | 3162676 Spastica Rex
Spastica Rex's picture

See my comment above.

Thu, 01/17/2013 - 13:07 | 3162723 CPL
CPL's picture

ditto lol

Thu, 01/17/2013 - 12:21 | 3162534 amanfromMars
amanfromMars's picture

I couldn't agree more with you, Lets_Eat_Ben, regarding the Many wise men (and women) have said that information is the ultimate resource comment. And how spooky that we share it together today.

Posted by amanfromMars on 01/17/13 12:12 AM ….. asking a simple enough question on

"But the Fed does the exact same thing all the time using sophisticated accounting and state of the art computing. The Fed "expands its balance sheet" by buying government bonds from private banks. In exchange for these securities, the Fed credits the banks with funds it creates out of thin air. The banks then pass the funds to the general public through loans. But it's important to realize that the Fed does not have any money to actually buy the bonds in the first place. The funds are "created" by a Fed computer. The process is easier (and equally duplicitous) than minting a trillion dollar coin (which at least requires the production of something other than computer code). The only difference is the lack of window dressing. It's a shame that the platinum coin episode did not result in a wider recognition of this brutal truth."

Many thanks for those clear and honest observations and explanation of a criminal ponzi, Peter  ...... which would appear to be the modus operandi/vivendi of the global terror banking/fiat capital system?

And is it inevitable as intelligence grows and information is freely globally shared, unless there is a radical fundamental change in that system, that bank owners/executives will become the live targets for those whom they have dispossessed and forced into a world of unnecessary pain and despair?

Thu, 01/17/2013 - 14:03 | 3163009 piceridu
piceridu's picture
I didn't know who Aaron Swartz was until last night when I watched a part of a Democracy Now show on TV dedicated to him.    This kid was a brilliant patriot, a hero; a patron saint for social justice and this has to be one of the saddest and most tragic losses of this generation. And because what happened to him was criminally tragic, I expect a tsunami of reactions from the online community.   Watch this first: Must see video right afterwards:
Fri, 01/18/2013 - 05:21 | 3165515 swiss chick
swiss chick's picture

How sad

Thu, 01/17/2013 - 12:02 | 3162446 Snakeeyes
Snakeeyes's picture

Game of Thrones: gov't and central banks now running (or ruining) our lives.

Thu, 01/17/2013 - 12:09 | 3162459 Lets_Eat_Ben
Lets_Eat_Ben's picture

Only the good die young...


And for you old fuckers out there: take up a cause and follow it to its end even if it means your end too. Don't just linger until time slowly turns you to dust. Make this world better for your posterirty.


A man who won't die for something is not fit to live.” - MLK

Thu, 01/17/2013 - 11:57 | 3162425 Random_Robert
Random_Robert's picture

If matter made any noise as it crossed the event horizon of a black hole, I'm pretty sure it would sound a lot like a Central Bank's printing press running full blast...

Thu, 01/17/2013 - 11:57 | 3162428 vote_libertaria...
vote_libertarian_party's picture

What is it in dollars?

Thu, 01/17/2013 - 12:06 | 3162464 FOC 1183
FOC 1183's picture

Delta since Dec 07

GDP: $1.438T

CBA: $5.470T

(percent changes in graph are CAGR)

Thu, 01/17/2013 - 12:18 | 3162528 Dumpster Fire
Dumpster Fire's picture

You got a link for that?

Thu, 01/17/2013 - 11:59 | 3162435 Sudden Debt
Sudden Debt's picture




Thu, 01/17/2013 - 12:10 | 3162485 AlaricBalth
AlaricBalth's picture

I concur. By my back of the envelope calculation, CB's Return on Assets comes to 0.459%. At that rate they could have just bought 4 year U.S. Treasury paper. Oh wait....

Thu, 01/17/2013 - 12:00 | 3162440 LawsofPhysics
LawsofPhysics's picture

Will continue until the supply lines break or EBT cards no longer work. Hedge accordingly.

Thu, 01/17/2013 - 12:15 | 3162511 Winston Churchill
Winston Churchill's picture


Whats your timeline ?

Parameters will do.

Thu, 01/17/2013 - 12:22 | 3162538 LawsofPhysics
LawsofPhysics's picture

Based on what the people of India, China, and Africa are willing to accept as "living standards".  It could be a while.  Of course there are many exponential equations at work here, so who the fuck knows. Things can get ugly quick. Never underestimate the stupidity of humanity, or what they are willing to do in a desparate situtation.

Thu, 01/17/2013 - 13:13 | 3162748 Winston Churchill
Winston Churchill's picture

Ther is a big difference between being born into those living standards,

and being submerged into them from a much better one.

TPTB don't have the time left IMO,for the slow gradulist approach which would

have to be multi generational.A short sharp event is more probable,the old

standby is of course war for delivering it.Then supply lines do break.

Talking of which,now the Chinese control the Panama canal,thru'

Hutchinson Whompoa,a tragic 'accident' could really screw the US miltary,

and commercial supply lines.

Thu, 01/17/2013 - 14:06 | 3163044 Hippocratic Oaf
Hippocratic Oaf's picture

Laws is right....

I can't remember how many times in the recent past I've said 'desperate people do desperate shit'

Thu, 01/17/2013 - 12:01 | 3162444 Glass Seagull
Glass Seagull's picture


So you're saying there's a chance.....

Thu, 01/17/2013 - 12:04 | 3162448 HD
HD's picture

If your central bank erection lasts longer than five years consult your doctor...

Thu, 01/17/2013 - 12:03 | 3162452 mayhem_korner
mayhem_korner's picture



So what's the "money multiplier", 1 -E09? 

Thu, 01/17/2013 - 12:06 | 3162454 francis_sawyer
francis_sawyer's picture

Quit bitching people ~ The magnitude of the problem & policy* response [by the CB's themselves] is allowing you to purchase PM's [not to mention other hard & soft commodities] at what STILL are ~ bargain basement prices...

Why all the hand wringing?


If it's gonna take 7 years to repatriate Germany's gold, then that's all you need to know about policy ~ as well as their HOPED FOR timeline... [The bartender just gave "last call for alcohol"]...

Thu, 01/17/2013 - 12:12 | 3162498 poor fella
poor fella's picture

The real bummer is having bargain basement prices for the next century. 

That would mean a certain lucky few, a generation down the line might expect  one hell of an inheritance

If so, it's still worth keeping assets out of this farce of a system. 

Thu, 01/17/2013 - 12:17 | 3162521 francis_sawyer
francis_sawyer's picture

 "If so, it's still worth keeping assets out of this farce of a system..."


You do what you can do... If you're worried about PROFIT yourself, then you're just about as bad as the ones you're accusing... Instead ~ if you take the HIGHER ROAD of refusing to participate in a corrupt system, then you gain a measure of FREEDOM...

I've finally come to the idea that I cherish the FREEDOM more than the PROFITS.,..

Thu, 01/17/2013 - 18:46 | 3164225 poor fella
poor fella's picture

I hear ya. I'm not thinking like Stephanie Ruhl where everyone has to be a BIG DOG and GET PAID and BANG SOME PROFITS cuz THAT'S THE SYSTEM and DON'T HATE THE PLAYAH' - can't stand that chic

I know things are unsustainable, think long term, and do the little things (like working on the garden and energy projects around the house) - but there are some around me that absolutely refuse to see the forest. A little scare would go a long way to getting people to THINK.

I NEVER would have thought we'd see millions of walking dead that watch those stupid fucking shows on t.v., get plastic surgery, go into debt over a vehicle to look wealthy, etc.

In the words of RAtM, "WAKE UP!! WAKE UP!!" 

that's all. I just want to see what more the Central Bankers will do during a little 'OH FUCK' moment that affects those that think things are fine. Sick of Ben's SMUG FUCKING FACE.

If we don't see change soon, it'll be too late ecologically - which I feel it almost is. 

Thu, 01/17/2013 - 19:12 | 3164312 poor fella
poor fella's picture

I agree about freedom. I was driving today and saw a quanset hut house, with a ghost town facade, a little garden and shop on the side and mature trees all around. There were hand made 'things' around like tables, chairs, wind-chimes, weird tools, etc.

For some reason, that made me think about that dude in Reno that was found with millions worth of gold. 

I had a sense that these people really figured it out. Save enough to not have to worry about basic needs and spend time doing the things you like. The time to get it together is now. Technology never did award people with more free time. My goal is the middle ground of not 100% free time (homeless on the street) and productive/satisfying work. TIME for yourself.

Watched "Riding the Rails" about the 250k hobo teens that took to the rails during the Depression. Showed the cities filled with homeless teens and talked about how they (barely) got by. One guy who experienced it said, "We went west thinking somebody is going to need us, we're young and hard working, and we're going to find good work. Nobody needed us."

The jobless cancer in Europe will be hard to ignore much longer as it really starts to take hold in the U.S. 

Thu, 01/17/2013 - 12:04 | 3162455 Gamma735
Gamma735's picture

The new normal is the same as the old normal(in the dark ages), SERFDOM!

Thu, 01/17/2013 - 12:04 | 3162457 icanhasbailout
icanhasbailout's picture

Remember when they said this stuff was for the purpose of getting small business and consumer lending going again? Ha ha ha ha!

Thu, 01/17/2013 - 12:05 | 3162460 PUD
PUD's picture

I suggest they use a different color like Australia did on their weather maps  when the temperature exceeded all previous records. Would have more impact and instill more confidence!

Thu, 01/17/2013 - 12:06 | 3162463 Rainman
Rainman's picture

Hell, all that pumping and the real world economy is earning passbook savings account rates. This has got to be bullish for stawks !

Thu, 01/17/2013 - 12:06 | 3162466 Smuckers
Smuckers's picture

How much of that is the iPhone5?

Thu, 01/17/2013 - 13:30 | 3162841 hooligan2009
hooligan2009's picture

use the delta in market cap of apple from its

low of March 2009 of $85/share market cap of c. $80 billion

to its peak of .c. 700 billion.. at $705.07/share a the last measured GDP point

= change in value of 620 billion or 3% of GDP in market cap terms..maybe the sales of i-phones followed the same path..

if so..

$473 billion at todays price of $503/share = negative hit on gdp of 1% for fourht quarter 2012.

Thu, 01/17/2013 - 12:07 | 3162471 holdbuysell
holdbuysell's picture

Send that chart to Santelli so that he can show it on air.

Thu, 01/17/2013 - 12:11 | 3162474 Dr. Engali
Dr. Engali's picture

Yeah but just think how bad things would be if they didn't get to work. I for one am grateful for our benevolent overlords.

Thu, 01/17/2013 - 12:30 | 3162573 forwardho
forwardho's picture

Thank you good Dr.

The alternative to this fantasy is a truly horrific reality.

Please grant me another day... just like today.


Thu, 01/17/2013 - 12:08 | 3162475 Everybodys All ...
Everybodys All American's picture

and Krugman would say you aren't doing enough. Explain his award please.

Thu, 01/17/2013 - 12:10 | 3162486 youngman
youngman's picture

Yeah just think where it would be if Krugman was in charge.....


But how do they unwind it??????

now that is something to ponder over a few cases of beer

Thu, 01/17/2013 - 12:17 | 3162518 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

There is no unwind as long as the boat keeps on course only implosion with the citizens left holding the bag of debt after all their real assets have been stripped clean from them. At least if we can keep our arms from being confiscated we might be able to negotiate debt forgiveness or at least favorable terms when the SHTF.

Thu, 01/17/2013 - 12:17 | 3162519 Everybodys All ...
Everybodys All American's picture

epic collapse is in the making.

Thu, 01/17/2013 - 12:47 | 3162664 kralizec
kralizec's picture

What's for dinner?  FUBAR, and lots of it.

Thu, 01/17/2013 - 12:09 | 3162481 101 years and c...
101 years and counting's picture

so, you back out inflation (money printing) and global GDP is down about 17%.

Thu, 01/17/2013 - 12:11 | 3162490 semperfi
semperfi's picture

OMG, how simple it is to achieve 5% GDP now!!!  Just do the math stupid:  multiply CB Asset Growth by 5 = 5 x 1% GDP growth = 5% GDP growth.

Problem solved.

Thu, 01/17/2013 - 12:47 | 3162659 Overflow-admin
Overflow-admin's picture

Wait... we would need more than the whole solar system central banks working together to acheive that!


Last time I checked, our extraterrestrial friends still don't give a fuck about our treasury auctions - cause we're talking about diatoms (monocellular algae) - so forget it.

Thu, 01/17/2013 - 12:12 | 3162491 Cognitive Dissonance
Cognitive Dissonance's picture

"How Many Central Banks Does It Take To Generate 1% GDP Growth In 5 Years?"

The answer (of course) is 42. The answer will always be 42.

Thu, 01/17/2013 - 12:12 | 3162496 Dr. Engali
Dr. Engali's picture

Shit! I left my damn towel at the house!

Thu, 01/17/2013 - 12:32 | 3162541 Cognitive Dissonance
Cognitive Dissonance's picture

I suspect the intergalactic highway that was routed through the Earth was funded by the Fed after they finally relocated off world.

<Krugman was right after all. We were invaded by space aliens and everyone won......except those who remained on Earth.>

Thu, 01/17/2013 - 12:11 | 3162492 W74
W74's picture

I would like to play cards with Keynesians.  You know what they're holding, they have only one hand to play and it's the "print mo' monay!" card.  Their solution to EVERYTHING is more liquidity.  Well what happens if you already have plenty of liquidity but nothing else?

We need to call out Keynesians not just here but everywhere on the web.  They ARE the flaw in the system.

Thu, 01/17/2013 - 12:42 | 3162633 Ghordius
Ghordius's picture

throwing money at problems is way older than Lord Keynes and a world under fiat currency regimes. it works - until it doesn't, that is

actually they should be called NeoKeynesian, then Keynes advocated budged surpluses and a tight monetary policy in good times

you know, the times when Greenspan was The Maestro and The Great Moderation reigned, and the communist threat was over, and it would have been time to reforge those swords into ploughs and collect a peace dividend

Thu, 01/17/2013 - 12:12 | 3162493 Temporalist
Temporalist's picture

How many central bankers does it take to change a lightbulb? 

One to enslave people into a fiat money system, one to hedonically adjust burning one's own hair as replacement for light from lightbulbs, one to buy politicians.

Thu, 01/17/2013 - 12:12 | 3162494 solidus
solidus's picture

Central Banks couldn't care less about GDP or employment for that matter.  They exist to sustain the feasibility of their government finances, which is why interest rates won't move anywhere until the day they move  I know I'm not telling anyone here anything they don't know already but it feels good to say it.

Thu, 01/17/2013 - 12:15 | 3162509 optimator
optimator's picture

All of us here know that the Banksters only do what enriches the coffers of them and their kin.  We don't count.

Thu, 01/17/2013 - 12:34 | 3162588 Cognitive Dissonance
Cognitive Dissonance's picture

"We don't count."

And we never did except as wage slave labor.

Thu, 01/17/2013 - 12:12 | 3162495 HD
HD's picture

Pushing on a string. Can't print growth. Can't print jobs.

Thu, 01/17/2013 - 12:14 | 3162502 Darth Rayne
Darth Rayne's picture

Central banks can print money and buy everything. So an 18% increase or 180% increase makes no difference. Provided GDP goes up 1 or 2% is doesn't matter.

Such is the nature of the game we play. They are only numbers.

It is all about control, banks control the money and Government controls us. This begins to end when the people know this. It ends when people understand their own natures.

Thu, 01/17/2013 - 12:20 | 3162533 HD
HD's picture

With respect, I disagree.  It won't "end" until enough people go hungry and have nothing to lose by fighting the system. Until that time it doesn't matter what people understand - they will do nothing but feel powerless. Once fear, hunger, desperation set in - then you get powerful change.

Thu, 01/17/2013 - 12:16 | 3162510 busted by the b...
busted by the bailout's picture

They used to call it pushing on a string.


We have reached the point of diminishing returns on paper.


Cash really has become trash.

Thu, 01/17/2013 - 12:16 | 3162517 Confundido
Confundido's picture

Define GDP growth....


Economic growth is not this. Economic growth takes place when you for the same amount of work can enjoy more goods. Or when for a lower amount of work, you can enjoy the same, or more goods.

Had we really had economic growth, we would be by now able to afford better goodies (though not real estate, which is a limited commodity) for same or less amount of gold ounces, working only 4 days a week, from home, while these goodies were being manufactured in the USA, rather than China. That would have been economic growth at its best.

Thu, 01/17/2013 - 13:06 | 3162721 hooligan2009
hooligan2009's picture

well said 

Thu, 01/17/2013 - 12:21 | 3162523 Lets_Eat_Ben
Lets_Eat_Ben's picture



Chronocling the end of the money/resource vortex/rape and pillage of the natural world is becoming irrelevant isn't it?


I get it. Things are bad and getting worse. The powers that be are going for broke. At what point do we just quit looking? Do they not lose power once we quit playing this fucked up game. I'm ready for a new game. One where the rules are based on the laws of nature and of a benevolent creator. Can we evolve now please?

I am tired of getting angry. I am tired of making sick jokes to maintain some semblance of normalcy in my life. I am ready to quit playing. And Tyler you could do so much by turning the page...

Thu, 01/17/2013 - 12:22 | 3162539 mayhem_korner
mayhem_korner's picture



The larger game - the one based on the laws of nature (and markets) and of a benevolent creator - will win out eventually.  What's playing out is the illusory game-within-the-game.  It cannot go on forever, just longer than seemingly tolerable.  The unfortunate joke, however, is that the suddenness of the end of this game will be incomprehensible to those unaware it is being played.

To quote Obi-Wan: "We must be cautious."

Thu, 01/17/2013 - 12:26 | 3162556 SheepDog-One
SheepDog-One's picture

No doubt about that, the day this implodes will leave everyone dumbfounded, if not mass panicking in the streets! It won't be some little -20% drop 'correction' this time, it will be a complete folding of the entire system, banks, all of it. THEN they will declare the only way out is 1 central world bank, government and currency as well, and they'll do it no one will stop them. 

Thu, 01/17/2013 - 12:24 | 3162548 semperfi
semperfi's picture

Problem is, 95% of people are still plugged into the Matrix and are content, and won't quit playing the game. 

Thu, 01/17/2013 - 12:30 | 3162580 SheepDog-One
SheepDog-One's picture

That will all change when one morning the 'unforseen disaster' hit overnite and they had to seize all 401K's and one knows when that will be though except Bernank and some other top bankers, but it is coming rest assured.

Thu, 01/17/2013 - 12:37 | 3162602 semperfi
semperfi's picture

Thats my biggest fear - 401K/IRA takeover, forced into Treasuries, or worse - the Social Security "lockbox".  I've been on the edge of cash-out for a couple years now but am still reluctant to bend over and take the tax hit.  I keep getting closer to letting go of that inhibition the more I hear this.

Thu, 01/17/2013 - 13:01 | 3162702 mayhem_korner
mayhem_korner's picture



The tax hit is the same whether you take it all out at once or do it in increments.  Consider taking a portion of it out and converting immediately to physical gold, silver and possibly foreign currency.  Then see how you feel about it. 

The only thing preventing you from cashing it out is the residue of the belief that it just might be ok to leave it there.

I drew down my 401k plans significantly (not totally) over 3-4 years.  I did it incrementally so as not to draw too much attention.  In the same way when my wife or I go to the grocery store, we grab an extra $50 fiat or so every week.  So we are sitting comfortably on about a year's worth of fiat, plus about 10 times that in other physical currencies (all at today's values, btw).  And the bank never notices because we're not doing $500 ATM withdrawals.  And leaving some of the 401k in there is like a sacrificial lamb so that the bad guys don't have much idea what we're up to.

Just some thoughts.  Good luck.

Thu, 01/17/2013 - 13:18 | 3162773 semperfi
semperfi's picture

Thanks - I like your thoughts.  Very reasonable.  I was thinking of using the cash-out to get physical in to Ag, Au, Pd, and Pt. I never considered doing it in chunks to stay under the radar - good advice.

Thu, 01/17/2013 - 21:26 | 3164774 StychoKiller
StychoKiller's picture

"I'm already gone!" -- The Eagles

Thu, 01/17/2013 - 13:44 | 3162919 hooligan2009
hooligan2009's picture


Thu, 01/17/2013 - 18:37 | 3164186 Radical Marijuana
Radical Marijuana's picture

Lets_Eat_Ben, I too WISH we could get out of the vicious cycle rut that we are STUCK IN! I too find my macabre sense of humour is wearing out from being used too much. However, there is "no page" to turn, other than the page that leads ot genocidal war, along with democidal martial law. We are ALREADY trillions of dollars too short, and decades too late, to prevent the social storms that are coming. A fair assessment, in my opinion, is that there really are no practical ways to be prepared for what is going to happen.

Of course, I too would LIKE that "we are ready for a new game" ... BUT, first we have to watch and wait until the current game collapses into chaos and mass murders, beyond our imagination! "They" do not lose power "once we quit playing this fucked up game." THERE ARE CHRONIC POLITICAL PROBLEMS INHERENT IN THE NATURE OF LIFE. The emergence of some new money/murder system will not be easy, since the only way that can become possible is after the current runaway insanities finally drive themselves mad enough to go through self-destructive psychotic breakdowns. There are barely the slightest traces of any agreement of what we should do instead of what is being done now ... There is no coherent set of policies to replace the runaway insanities dominating us at the  present time. Right now, many, many people agree with what is wrong, but practically nobody agrees with what to do to fix it. Therefore, after the current system finally destroy themselves, there is no sudden social sanity that will emerge.

Although I share a lot of your emotional attitudes, there is no reasonable hope. We are already living inside an established runaway system of exponentially growing frauds, backed by force, which we can only watch get worse, ... and when it finally drives itself mad enough to destroy itself, things will then be even much worse than now ...

At least Zero Hedge provides a relatively sane perspective on the news about the runaway insane society that we were born into. However, there is nothing that they can do about it, except keep on reporting about how it is getting worse, faster ... No matter how repetitive it becomes to be STUCK INSIDE of these vicious spirals, we are still STUCK!

You ask "Can we evolve now please?"  Mostly that "evolution" is an euphemism for mass extinction, after which, maybe, some of the survivors will be able to continue to evolve. Personally, I rather hope that it takes longer for the runaway insane systems of force backed frauds to collapse, because it is NOT going to be better within my life time after that happens.

Lots and lots of history has been relatively stable empires, punctuated by collapse into civil war and chaos, through which somehow, something survives to become the new empire. This time, the empire is global, and its collapse is beyond our imagination ... So, I would rather keep on watching and waiting, rather than finally have the social storms of mass murder overwhelm me.  For sure, I see no reasonable hope that things are going to get better after the current systems of social insanity finally go through their psychotic breakdowns.  So, I would rather Zero Hedge keeps on providing us with good reporting, and interesting illustrative charts, to tickle my macabre sense of humour, rather than have those runaway system finally have turned me into road kill, so that the news no longer matters any more.

Thu, 01/17/2013 - 21:28 | 3164784 StychoKiller
StychoKiller's picture

To summarize:  "Lord, deliver us from Evil!"

Thu, 01/17/2013 - 12:21 | 3162535 SheepDog-One
SheepDog-One's picture

DOW now only 600 measely points from its all-time record massive bubble top! 

But this time, it's different? Because it's a bubble blown with Clownbux?

I'm glad I'm well away from this coming disaster.

Thu, 01/17/2013 - 12:25 | 3162554 semperfi
semperfi's picture

DOW will hit 15000 before it hits 10000 thanks to Benny-boy.

Thu, 01/17/2013 - 12:28 | 3162570 SheepDog-One
SheepDog-One's picture

Or not, who knows? No one but them. It may not reach 14,000 for all we know before the coming total trainwreck. 

Thu, 01/17/2013 - 12:29 | 3162575 HD
HD's picture

Don't be too sure. He spent TRILLIONS just getting back to 1500...

Thu, 01/17/2013 - 12:31 | 3162584 SheepDog-One
SheepDog-One's picture

For what gain? To live to monetize a bit more tomorrow? That will end someday, soon probably. Can't be much more benefit in all this and really I suspect the point of diminished returns has already passed.

Thu, 01/17/2013 - 12:36 | 3162598 HD
HD's picture

The easy part is over - they had a massive printing party and now have no way to unwind. Reality is closing in and the big gains are gone. The best the Fed can hope for is to hold the S&P at 1400ish.


Thu, 01/17/2013 - 22:44 | 3165017 StychoKiller
StychoKiller's picture

I get the impression that the Dow is being pumped up so that TPTB can bail out

with a small profit, triggering massive selling once the magic number is reached.

Thu, 01/17/2013 - 12:28 | 3162569 Joe moneybags
Joe moneybags's picture

Using rigorous mathematics, I calculate, from the chart, that the GDP would be -16% had the CB's not increased their balance sheets 17%.

What prize do I win? 

Thu, 01/17/2013 - 12:30 | 3162577 sodbuster
sodbuster's picture

Keynesians will never admit failure- when this all falls in a heap, they will just blame others, because they "weren't allowed to print enough"!!

Thu, 01/17/2013 - 13:10 | 3162739 Peterus
Peterus's picture

Like all government programs - it just need more money.

Thu, 01/17/2013 - 12:33 | 3162586 DR
DR's picture

Proof that the Central Banks are powerless to stop the economic decline of the Western world.

Adjust your lifestyle accordingly.

Thu, 01/17/2013 - 12:37 | 3162605 Temporalist
Temporalist's picture

Stop it?  They are pouring gasoline on it, packing it with C4, strapping it to a rocket and arming it for launch.

Thu, 01/17/2013 - 12:53 | 3162686 hooligan2009
hooligan2009's picture


(with appropriate eye rolling amongst the BIS members and shouts of "more champagne Mr Hugo Swinging dick?" at GS, MS and JPM prop desks. Another ticket to clip to the ride on the broken ferris wheel...keep your hands inside the chairs kiddies.

Thu, 01/17/2013 - 12:38 | 3162611 orangegeek
orangegeek's picture

Always was the case - when the media and government say otherwise over and over, the facts no longer matter.


Lifestyle adjustment?  That's a good way of saying it.

Thu, 01/17/2013 - 12:38 | 3162604 JR
JR's picture

Trickonomics: Peter Schiff on the trillion-dollar con.

“The birth, and the apparent death, of the trillion dollar platinum coin idea may one day be recalled as a mere footnote in the current debt crisis drama. The ultimate rejection of the idea (which was to use a loophole in commemorative coinage law to mint a platinum coin of any denomination) by both the the President and the Federal Reserve seems to offer some relief that our economic policy is not being run by out-of-touch academics and irresponsible congressmen. In reality, our government has been creating more than one trillion dollars out of thin air every year for the past five. The only difference is that the blatant dishonesty of a trillion-dollar platinum coin is so easy to understand that the public simply couldn't be expected to swallow it. The American people are more than willing to be fooled, but they won't tolerate so simple a ruse.”

Thu, 01/17/2013 - 12:43 | 3162641 Milton Waddams
Milton Waddams's picture

hmm, so hollowing out the manufacturing base of a nation can lead to structural issues... and ficticious methods of attempting to, uh, paper over the problem.


Who could have known?



Thu, 01/17/2013 - 13:04 | 3162712 hooligan2009
hooligan2009's picture

they didn't make that...................literally

Thu, 01/17/2013 - 13:17 | 3162768 JR
JR's picture

Does the New World Order Threaten the US?: Of course not. The US is the NWO. Article by Paul Craig Roberts.


“Those concerned about “The New World Order” speak as if the United States is coming under the control of an outside conspiratorial force. In fact, it is the US that is the New World Order. That is what the American unipolar world, about which China, Russia, and Iran complain, is all about.

“Washington has demonstrated that it has no respect for its own laws and Constitution, much less any respect for international law and the law and sovereignty of other countries. All that counts is Washington’s will as the pursuit of hegemony moves Washington closer to becoming a world dictator.

“The examples are so numerous someone should compile them into a book. During the Reagan administration the long established bank secrecy laws of Switzerland had to bend to Washington’s will. The Clinton administration attacked Serbia, murdered civilians and sent Serbia’s president to be tried as a war criminal for defending his country. The US government engages in widespread spying on Europeans’ emails and telephone calls that is unrelated to terrorism. Julian Assange is confined to the Ecuadoran embassy in London, because Washington won’t permit the British government to honor his grant of political asylum. Washington refuses to comply with a writ of habeas corpus from a British court to turn over Yunus Rahmatullah whose detention a British Court of Appeals has ruled to be unlawful. Washington imposes sanctions on other countries and enforces them by cutting sovereign nations that do not comply out of the international payments system

“Last week the Obama regime warned the British government that it was a violation of US interests for the UK to pull out of the European Union or reduce its ties to the EU in any way.

“In other words, the sovereignty of Great Britain is not a choice to be made by the British government or people. The decision is made by Washington in keeping with Washington’s interest.” ...

With this caveat : The "American people" are being herded into the same rootless universal “nation,” a NWO corral ruled by the whip hand of the bankers.

Thu, 01/17/2013 - 13:18 | 3162769 Savyindallas
Savyindallas's picture

So what if the Fed extends it's balance sheet by another 500% from these levels? What if they simply owned every mortgage, most of the stock market, the notes on most significant peices of commercial real estate--and then the market and economy crashes? Now banks holding bad paper usually collapse and fail-they are gone, as the collateral is insufficient to pay off the loan. But with the Fed, isn't it different? They could have trillions of dollars in losses and deficiencies, but so what? All they have to do is create an accounting entry   -and since they now own all the assets (collateral) what is their loss?

 So what if this is the plan? Yes it sounds like a massice conspiracy to enslave us all, but usn't this really what they are setting up? Isn't this what they are doing? Yes the Fed gives profits back to the Treasury, but these aren't profits -on paper they are losses.

Where is my reasoning wrong her? Anyone? 

Thu, 01/17/2013 - 19:06 | 3164289 hooligan2009
hooligan2009's picture

quite right...this is Fed book keeping...profits and losses at the fed have no meontary consequence.

bit like communism and a bit like banks plus fraudie and funny (freddie and fanny) not having to mark their loan and mortgage portfolios to market.

money printing can only ever be writing on isnt worth anything.

if the Fed buys everything, Stalinanke, can just adjust money supply (worthless paper) up and down for profits and losses and reflect this in 1's and 0's

the problem is (in much the same way as we needn't pay taxes because the Fed can simply print the deficits) that people need a store of value

the Fed has removed that link because it prefers banks to survive, rather than people, since banks are the chosen keepr of record of value

Thu, 01/17/2013 - 13:40 | 3162907 orangegeek
orangegeek's picture

The same number of bankers it takes to double the SP500 in less than four years.


GDP growth 1%.  SP500 growth - 105%.   Get it?

Thu, 01/17/2013 - 14:03 | 3163025 _ConanTheLibert...
_ConanTheLibertarian_'s picture

How many central banksters does it take to screw in... I mean screw you!

Thu, 01/17/2013 - 14:06 | 3163040 Turquoise5
Turquoise5's picture

Does anybody truly believe they know what they are doing?

Got this from a poster named Raynja yesterday.  Fed's attempt to teach everyone how their Fed rate works.

Well, I hope this is NOT the actual model they use, because if you start out with a Fed funds rate as high as 1.75% (which is near where Treasuries are now) you will see the Fed funds rate needs to be hiked almost immediately.  Additionally, the rate needs to go to 10%+ within 3 years to keep unemployment and "inflation" "stable" and include jumps of 2%+, which we know the Fed does not ever do.

Everyone better pray the real model works better than this, but I seriously doubt that it does.  Moreover, does anyone truly expects inflation to remain below 2% when the Fed funds rate is at 10%+ as the simulator indicates?!  Really, Ben?!!



Fri, 01/18/2013 - 10:09 | 3165841 sessinpo
sessinpo's picture

This is actually a good thread but you need to think about it (critically).


Banks do not produce growth, they do facilitate it, but it is simply a tranfer of wealth. Banks do not generate or create wealth. Neither does government. They are facilitators and nothing more.


However, both these entities of banks and government steal wealth. They steal wealth in multiple ways.

One way they steal wealth is by taking money from the private sector which prevents the private sector from investing that money in a free market system.

Another way in the additional loss (cost) of the productive potential of money flows is that banks and governments have administrative costs in that redistribution of wealth. To make my point, let's say the cost is a mere 1/2%.

Given we daily see trillions thrown around, how many of you would be happy to have 1/2% of one trillion each year? I would say 100%.



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