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Signs Of The Times

Tyler Durden's picture





 

Via Mark J. Grant, author of Out of the Box,

“When half the things you are told are a lie; nothing will surprise you more than the truth.”
 
                         -The Wizard
 
The financial world, at the moment, is a scary place. The signs of this are all about us and yet the consensus view is to worry about nothing. This has been caused by one singular action which is the orchestrated input of cash into the financial system by every major central bank on Earth. Money will go somewhere as it is created and so it has which is exactly why the markets are at or close to all-time highs while economic conditions have crumbled precipitously. It is not this market or that market which is in a bubble but all of them and it is systemic by its very creation.
 
There is also an ancillary cause of much of this which is the constant use of lies and made-up numbers to cover up and denigrate the truth. This happens to some extent in the United States but is rampant and prevalent in Europe and also a daily occurrence in Asia. The Europeans do not count liabilities as part of the balance sheets for either the sovereigns or their banks but, as I have pointed out so many times before, the not counting of them does not erase their actuality or their consequences. Liabilities are not counted, debt to GDP ratios for the sovereigns which are based upon the fictitious numbers are then not accurate, economic assumptions become a fairy tale and it all plays along for a time until, and the “until” always arrives, that the liabilities must be paid and accounted for because the money is just not there. It has been four years, four years of paper creation, four years of larger and larger lies, four years of fantasy balance sheets and today I call the ball; it is all about to end.
 
Look around you; there are signs all around. Spain, if you believe their numbers, with an official 15.5% in bad loans, Italy at 10.2% and Italian elections looming whose results will surely not please those in Brussels and Berlin. Banking crises in both of these countries which are shaking the foundations of their credibility. A Mario Draghi who’s turned up decibels in his call for a European wide bank guarantee is rebuffed and denied by Germany who will not subject their citizens to the liabilities that could and will ensue. The majority of the market participants have not figured it out yet but Mr. Draghi’s promise, which was conditional on the support of the European Union, has been denied. Verboten! The Germans will not allow Mr. Draghi to “Save the World” and so the underpinning of the European sovereign debt market has become a farce whether it is recognized quite yet or not. Recognition will come; reality eventually surfaces. 
 
Let me share with you an experience I had recently. Please bear in mind that it is only one car dealer in one city in the United States. This particular car dealer carries Rolls Royce, Bentley and Aston Martin. I stopped by the dealer and was told about what was going on - it is called “tagging.” According to this gentleman both BMW who owns Rolls Royce and Volkswagen who own Bentley are engaged in this process. There are several different tactics apparently. In one the car maker pays the dealer to take the car on as a “demonstrator” and then the car is marked on their books as a sale. In another, money is paid by the car maker to the dealer who uses the money to buy the car but there is a second agreement penned, a repo if you will, that if the car is not sold in X amount of time that the car maker will take it back. In the meantime it is marked as a sale on the car maker’s books. There are apparently many variations to this scheme but the end result is cars that have not been actually sold are entered on the car maker’s ledger as sold and so the cars are “tagged” and the books are falsified.

There is no inflation anywhere in any country we are told past some minor amount and yet, in the United States, gasoline prices surged to their highest level ever in the last few days. Year to date prices are up 12% and rising quickly. Here is another example of counting numbers as you like but eventually confronting reality. Here is the corollary to the famous remark by Stalin that, “It's Not the People Who Vote that Count; It's the People Who Count the Votes.” So what we find are number counters in America and Europe that purposefully distort the data, the passage of time, and then reality tearing at your juggler.
 
Today there is a hue and cry that the debt to GDP ratio in Spain is 84% and the highest that it has been in one hundred years. It is laughable. The debt to GDP ratio is far past 160% if you count correctly. There are those that say both methodologies are acceptable and they are wrong; dead wrong. The liabilities, the contingent liabilities, the sovereign guaranteed bank debt of Bankia and others is there and must be paid back to the ECB. Securitizations posted at the ECB including Real Estate loans, construction loans and general business loans are now worth pennies on the Dollar and someone will be forced to pay. Those that count may well change the course of an election but those that count cannot do much about an empty bank vault when all of the cash is gone.
 
We live in dangerous times. Money created out of nothing and in such quantities that Valuation is called into question. Statistics made up and manipulated as a matter of due course and defended as Preservation of the State. Lies told with such straight faces and almost religious fervor designed to subdue the masses and place investors in a sterile coma where “fine” is the watchword of the marketplace. It is all controlled, it is all manipulated but as the bills become due, as there is not enough cash in the drawers; events will happen, yields will rise, equity markets will fall and then a new and quite unpleasant set of circumstances and consequences will arrive.
 
Politics, economics and the debauchery of the truth. There are consequences; there are always consequences. The world has subsisted on fantasies for four years but I think this spring will bring on the vengeance of the Fates for the demagoguery that has transpired.

 


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Tue, 02/19/2013 - 09:51 | Link to Comment Hulk
Hulk's picture

End of the road Bitchez! 

Tue, 02/19/2013 - 09:53 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

This calls for a toga party.....a really big one.

Tue, 02/19/2013 - 10:00 | Link to Comment Rubicon
Rubicon's picture

Id hate to live with this bloke.

Tue, 02/19/2013 - 10:05 | Link to Comment Landotfree
Landotfree's picture

Inflation is dead and has been for about 5 years now.   The system is unable to generate the needed exponential growth needed to sustain itself.  The game is not over but the fat lady started warming up in late 2007, when the system was generating new credit at a $4.7T annualized rate.   

http://2.bp.blogspot.com/--RkLZLRlRi8/UGAGOUg7fNI/AAAAAAAAABs/HHgMlfUYP2...

The rest of all this is just noise.

The system is simple, inflation must be greater than the prior.  Unfortunately or fortunately, humans have no ability to do this as it would require unlimited power.   60-80 years is the norm.

Tue, 02/19/2013 - 10:09 | Link to Comment BLOTTO
BLOTTO's picture

Every (work) morning when i wake up and 1st open my eyes...I think about how fucked this shit show really is.

Tue, 02/19/2013 - 10:16 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

They're cutting down forest's to make more paper to counterfeit on.

They're exchanging that worthless paper for our land, resources and labor, leaving us desolate and impoverished.

Tue, 02/19/2013 - 10:19 | Link to Comment Landotfree
Landotfree's picture

You can't cut down trees faster than they grow.

http://hypertiger.blogspot.com/2013/02/more-worthless-information.html

Tue, 02/19/2013 - 10:26 | Link to Comment Oquities
Oquities's picture

millions of trees are saved by the pushing of a few buttons for money creation, which then causes billions in eventual losses.

Tue, 02/19/2013 - 11:00 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Welcome to the Jewnited States of America.

http://thezog.wordpress.com/who-controls-google/

then scroll down, follow some of the links on the right side.

Tue, 02/19/2013 - 11:17 | Link to Comment MSimon
MSimon's picture

Another mind colonized. Can the ovens be far off?

Tue, 02/19/2013 - 10:28 | Link to Comment kridkrid
kridkrid's picture

I assume the person who voted you down doesn't like the observation that inflation is dead. People get hung up on this point and it creates confusion. What is certainly dead is our ability to naturally live on the exponential curve you linked. To live on that curve would require an infinite number of participants in the system each doing their part to expand credit/debt. Of course, the infinite number of participants would also need infinite resources to match the infinite growth in credit/debt. None of this is the case. So this system will die. If we experience hyperinflation before it dies, it will only be a symptom of the system trying to survive a moment longer. Inflation vs. deflation is a meaningless debate, really. They are two sides of the same coin.

Tue, 02/19/2013 - 10:30 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

I voted both you Trolls down.

Tue, 02/19/2013 - 10:42 | Link to Comment kridkrid
kridkrid's picture

Cool. I've never been called a troll here. What's your angle? Spend some time understanding how credit money works. You'll be better for it. Without understanding how the system works, you become nothing more than a pawn who can be pushed around through mythology and emotion. Or don't... continue to be a pawn... it won't change things either way.

Tue, 02/19/2013 - 18:11 | Link to Comment Swarmee
Swarmee's picture

Deflation in what though? I haven't felt the need to transact a billion dollar LBO any time recently, but I'll be damned if nominal prices of things I buy every day to survive - you know, food, heating fuel, gasoline, health insurance, quality clothing, home repair goods - have gone up every single year since at least 2002. And due to [published, officially acknowledged] inflation the real value of my marginal dollar keeps going down. So real purchasing power down while nominal price numbers up. But no inflation here!

Seems to me the only people experiencing deflation are those gambling with OPM in ludicrously complicated BETS in an international casino. Stuff that is not taxed at the same rate as my labor and so does not even pay back into the system at the same rate as those of us who work for a living and are seeing those living costs rise.

But please, do explain why gas is going back to $1/gallon in the US just like it was in 2000. The same gas that is used to produce and transport every single consumer good in our just-in-time inventory system, therefore affecting the price of every single item.

Tue, 02/19/2013 - 12:25 | Link to Comment More_sellers_th...
More_sellers_than_buyers's picture

STOP trying to rationalize anything.  The fed controls the world.  Inflation is dead until it isn't.  It is very simple.  Rules do not apply anymore.  All the smartest guys in the room are broke now.  

Tue, 02/19/2013 - 14:56 | Link to Comment TruthInSunshine
TruthInSunshine's picture

"...the Fed" is but one spoke in the wheel.

 

Did you ever notice how gamblers at casinos are far more likely to become much larger "bettors" than they otherwise would be once they exchange their perceived more valuable colored fiat paper for differently colored plastic casino chips?

Or, stated alternatively, most gamblers at casinos would probably be less statistically likely to place as much on their bets if they were playing with the fiat paper they brought to the casino, rather than some plastic chip that only has any value within the walls of that casino.

 

Think about it...

Tue, 02/19/2013 - 11:05 | Link to Comment MachoMan
MachoMan's picture

Is inflation dead or is growth dead?  Because I see you making a point for the latter, but not so much the former (induction is...  dart throwing)... 

Further, if growth is dead, does that necessarily lead to deflation or inflation?  Can we tell?  Could it even be both over the medium term?  Multiple times?

Tue, 02/19/2013 - 11:43 | Link to Comment kridkrid
kridkrid's picture

I think inflation vs. deflation is primariy a policy choice. The ultimate distruction of the currency is the known. The path we take for the remaining few ________ (months or years) is the unknown. Kyle Bass said something to the effect of "timing the end of the debt super-cycle is a bit tricky". People who do not understand the system view this as a cop out. Oh well.

Tue, 02/19/2013 - 12:41 | Link to Comment Variance Doc
Variance Doc's picture

You did not answer MM's question.

It would help it you define inflation.  Most around here (the thinking ones at least) would define inflation as a result of more money (the stock and flow; huge stock and increasing, leaking flow and increasing) chasing fewer real goods.  The production of real goods cannot keep pace with the “production” of credit+coupon, hence the need for baffle ‘em with bullshit notions like rehypothecation, CDOs, etc.

Thus, you are seeing the severe curtailing of real growth relative to markers such as GDP, but inflation (stealth or otherwise - horse meat, 11” footlongs anyone?) is alive and growing.  The 1+ trillion in US government spending over revenues (plus some of the bank reserves) *is* leaking into the eCONonmy.

Like a frog in boiling water, Joe Sixpack and Sally Housecoat are slowly realizing the gravity of the situation. Not fully aware yet, but it will hit them like a hammer soon.  Gas prices, I think, will the be the first flashing light for 'em.

Tue, 02/19/2013 - 13:27 | Link to Comment kridkrid
kridkrid's picture

The issuance of credit creates "money"... the destruction of credit destroys it. Cascading defaults, if they are allowed to happen, or when they can be stopped no longer, will be (or would be) deflationary. This is what central banks are trying to prevent. Not because they care about us, but because banks can't exist in a no growth or declining environment. Leverage requires growth. Sooooooo.... where are we today? Mostly treading water... with bi-flation (inflation in the things we need, deflation in the things we own)... and we are sitting on a time-bomb. Things will not improve.

Tue, 02/19/2013 - 14:01 | Link to Comment Variance Doc
Variance Doc's picture

Ahh, the credit=money BS.  A fool's errand...

Tue, 02/19/2013 - 21:59 | Link to Comment kridkrid
kridkrid's picture

So what is money? In our system... What is money. How does it come to be? Calling something what it is... A fools errand? Ok.

Tue, 02/19/2013 - 13:11 | Link to Comment dtwn
dtwn's picture

Apparently you missed the memo that hyperinflations are par for the course: Via ZH

http://www.zerohedge.com/comment/reply/470018/3255784

Tue, 02/19/2013 - 17:05 | Link to Comment JR
JR's picture

The fat lady's already sung and she’s out of a job; her career couldn't sustain the inflated price of her food intake and she's now the down and out thin lady.  Only bankers push your line. Ask the public if the price of anything is the same as last year. The public may not be getting the money Bernanke’s printing, we know where that’s going, but they’re sure getting the price increases. The only deflation they’ve seen is in their wallet, their purchasing power.

Tue, 02/19/2013 - 10:01 | Link to Comment francis_sawyer
francis_sawyer's picture

Print MOAR road...

Tue, 02/19/2013 - 10:33 | Link to Comment Lost My Shorts
Lost My Shorts's picture

Ya, ya, "The world has subsisted on fantasies for four years but I think this spring will bring on the vengeance of the Fates for the demagoguery that has transpired."  But someone or other has been saying that for years.  The end of the party is almost here, within three months, within six months, by the end of the year, etc.  Eventually they will be right, just like a stopped clock will be right eventually.

But I am tired of waiting.  I think I will go balls to the wall long, today.

Tue, 02/19/2013 - 11:32 | Link to Comment Just Ice
Just Ice's picture

Would indeed be nice to know when reality gets tired of toying with the juggler and goes for tearing into the jugular.  Don't get too tired of waiting tho'...things can be stalled out in corrective sideways fashion, imo, to about 2026...in the meantime I would suspect market ranges coincident with such malaise to provide ample movement, (e.g. a dow range from 8000 +/-  to 14000 +/-).

Tue, 02/19/2013 - 09:51 | Link to Comment CH1
CH1's picture

The world has subsisted on fantasies for four years but I think this spring will bring on the vengeance of the Fates for the demagoguery that has transpired.

Reality will rise again? That would be nice.

Tue, 02/19/2013 - 10:00 | Link to Comment kridkrid
kridkrid's picture

People who believe that the world has subsisted on fantasies for only four years are part of the problem.

Tue, 02/19/2013 - 10:03 | Link to Comment DeadFred
DeadFred's picture

Futures are up this AM but Dr. Copper dropped below support yesterday and hasn't recovered. The Dr. knows.

Tue, 02/19/2013 - 10:18 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Nobody fucks with the Jesus

http://www.youtube.com/watch?v=YmNr5eh35iQ

 

Tue, 02/19/2013 - 10:20 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Fucking with the Jesus would be........ a big mistake

Tue, 02/19/2013 - 10:30 | Link to Comment toys for tits
toys for tits's picture

 

 

I like your style, dude.

Tue, 02/19/2013 - 09:55 | Link to Comment Lost Wages
Lost Wages's picture

Yay, vengeance! The longer the wait, the sweeter it is.

Tue, 02/19/2013 - 09:56 | Link to Comment cossack55
cossack55's picture

"One can avoid reality, however, one cannot avoid the consequences of avoiding reality"

                                                            AR

Always loved that quote

Tue, 02/19/2013 - 10:06 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Ayn Rand was a crazy old bitch but she did get that and a few others things right including

 

"A genius is a genius, regardless of the number of morons who belong to the same race -- and a moron is a moron, regardless of the number of geniuses who share his racial origin."

Tue, 02/19/2013 - 10:56 | Link to Comment A Lunatic
A Lunatic's picture

Reality is for the little people.

Tue, 02/19/2013 - 09:59 | Link to Comment Apostate2
Apostate2's picture

This is where the sidewalk ends. A new road will come. Maybe no halting places but that is the nature of path finding. Find your own. Then be a guidon.

Tue, 02/19/2013 - 10:02 | Link to Comment kridkrid
kridkrid's picture

You'll come to a place where the roads are not marked,
Some windows are lighted, but mostly they're dark

Tue, 02/19/2013 - 10:06 | Link to Comment francis_sawyer
francis_sawyer's picture

The last 3 road endings were <solved> by:

~~~

- Al Gore 'inventing' the internet

- evil masterminds in caves masterminding 'Pussy Galores Flying Circus'

- 'Tanks in the Streets' & printing presses

~~~

I think we're finally about due for the alien arrival...

Tue, 02/19/2013 - 10:07 | Link to Comment Notarocketscientist
Notarocketscientist's picture

The Russia meteor was a UFO landing...

Tue, 02/19/2013 - 10:11 | Link to Comment francis_sawyer
francis_sawyer's picture

I'm supposed to believe a guy named 'Notarocketscientist' on the subject of meteors & UFO's? 

~~~

Oh well ~ I suppose it's no worse than Krugman, Bernanke, or Greenspan talking about the economy...

Tue, 02/19/2013 - 10:19 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Check CNN - the aliens are crawling out of the hole in the ice as I type!!!!  :)

Tue, 02/19/2013 - 10:22 | Link to Comment francis_sawyer
francis_sawyer's picture

Let me guess... They have 'brown' skin color & swastika tattoos...

Tue, 02/19/2013 - 11:12 | Link to Comment flapdoodle
flapdoodle's picture

More likely it was the opening volley by the Arachnids against the Federation - watch out Buenos Aires!

Tue, 02/19/2013 - 12:14 | Link to Comment francis_sawyer
francis_sawyer's picture

WANNA KNOW MORE?

Tue, 02/19/2013 - 10:02 | Link to Comment Karl Napp
Karl Napp's picture

One of the largest Spanish real estate developers Reyal Urbis today filed for bankruptcy.

Tue, 02/19/2013 - 10:30 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Thats a sign of a roaring economy now.

Tue, 02/19/2013 - 10:05 | Link to Comment news printer
news printer's picture

110 year old Livermore bulb = no need for replacement

Pyramids of Waste (2010), AKA The Lightbulb Conspiracy - Planned obsolescence documentary

"The lightbulb conspiracy" is a documentary about how our economic system based on consumerism and planned obsolescence is breaking our planet down.

http://dotsub.com/view/aed3b8b2-1889-4df5-ae63-ad85f5572f27

 

Tue, 02/19/2013 - 10:08 | Link to Comment Jason T
Jason T's picture

that light bulb has never been turned off.  It's the on and off the burns out bulbs.  It lights up too fast and turns off too fast.. if there was some kind of component that allows the light to turn on and off slowely, bulbs would last a whole lot longer.

 

I notice my LED bulbs do just that.. they take a few seconds to go dim when I turn off.  23 year life supposedly.  

planned obsolesense is evil otherwise.  

Tue, 02/19/2013 - 10:20 | Link to Comment francis_sawyer
francis_sawyer's picture

You're leaving out the whole secondary market of people who like to stick light bulbs up their ass...

Tue, 02/19/2013 - 18:19 | Link to Comment Swarmee
Swarmee's picture

While you have a point about the duty cycles affecting the lifetime of the bulb, there's a lot more to it than what you're considering. Not the least of which is the physics behind how each device creates its light. Lets leave it at correlation is not causation and that a standard incandescent bulb simply left on in your basement will certainly not stay working for 23 years.

Tue, 02/19/2013 - 10:04 | Link to Comment Commander Cody
Commander Cody's picture

Bennie B. has all bets covered until the dollar is a shit stain on Atlas' undies.

Tue, 02/19/2013 - 10:06 | Link to Comment youngman
youngman's picture

and gold and silver are down....yhe CNBC and Bloomberg crews are sure trying to get the individual investor back into the market....they want their cash.....all this while we see two billionaires fighting over one stock....we see fat finger crashes daily...we see volumes way down...but yet the markets hitting new highs....we see the G20 doing nothing about blatent devaluations....think the 30´s relived....housing is being bought up by investors...not users...I feel we are still getting closer to the cliff....it will get worse before we hit it...then its hold on to your investment beliefs..as they will soon play out wether they were good ideas or not.....I am taking the PM´s track...but I also see that TPTB can move the price...that TPTB can get the politicians to change the rules...and even laws..but I also believe there will be a default in a delivery...that will be a game changer..

Tue, 02/19/2013 - 11:22 | Link to Comment BlueCollaredOne
BlueCollaredOne's picture

C'mon Mark, Spring?  Really? I think it's time for you to dust off your copy of 1984 or Brave New World to see where this is heading.

The goverment printing presses will continue, power consolidation will continue, and the propoganda that everything is fine will continue.  IF the masses ever wake up to what is happening around them, the dissenters will be quickly silented to avoid further dissemination of information that goes against the status quo.  This thing has a long way to go.  

Let's keep the hopium to MSM.

 

Tue, 02/19/2013 - 10:08 | Link to Comment Greshams Law
Greshams Law's picture

"...and then reality tearing at your juggler."

I hate it when that happens. Ruins the whole show.

Tue, 02/19/2013 - 11:43 | Link to Comment shovelhead
shovelhead's picture

Chainsaws and dildos are my favorite.

How do they do that?

Tue, 02/19/2013 - 10:09 | Link to Comment apberusdisvet
apberusdisvet's picture

In either an optimistic or pessimistic scenario, the sheep will still be shorn, especially those who are unable to connect the dots that the status quo has a finite life.

Tue, 02/19/2013 - 10:10 | Link to Comment Sudden Debt
Sudden Debt's picture

The Europeans do not count liabilities as part of the balance sheets....

WE HAVE BALANCE SHEETS?!

Tue, 02/19/2013 - 10:29 | Link to Comment Hulk
Hulk's picture

otherwise referred to as off balance, balance sheets...

Tue, 02/19/2013 - 13:06 | Link to Comment helping_friendl...
helping_friendly_book's picture

Eliminate Repurchase agreement and the whole system will collapse.

Tue, 02/19/2013 - 10:11 | Link to Comment ArkansasAngie
ArkansasAngie's picture

This will not end until "they" lose control. I hope it is sooner than later. I fear it will be later.

Tue, 02/19/2013 - 10:15 | Link to Comment Shizzmoney
Shizzmoney's picture

I think even we here at ZH underestimate the ability of TPTB to "extend and pretend" as long as possible.

On top of that, it's even a preferred ideology to our corporatized "elites", to not to "kick the can" but to "paper over" problems.

 

Tue, 02/19/2013 - 12:05 | Link to Comment espirit
espirit's picture

Everything that you could purchase today, will be costlier tomorrow.  It's "death by a thousand cuts" which the sheeple fail to recognize.

Don't count on your favorite products being indefinitly available to the masses.

Tue, 02/19/2013 - 10:12 | Link to Comment flacorps
flacorps's picture

Bi-flation: needs cost more while the prices of wants collapse.

Tue, 02/19/2013 - 10:15 | Link to Comment gamera9
gamera9's picture

And you tell me
Over and over and over again, my friend
Ah, you don't believe
We're on the eve
of destruction.

Tue, 02/19/2013 - 10:18 | Link to Comment Son of Loki
Son of Loki's picture

Sounds like the housing market.

 

The bank gives you (the Flipper) the money to buy a house (zero down) with your intention to try 'flipping' it ASAP to Sucker#1.  The bank marks it as a loan (the loan officer chalks it up as another point toward his Christmas bonus)....the builder marks it as a sale and deposits the money....the flipper marks it as inventory until he sells it.

 

The bank takes it back ("foreclose" and "repossess" are words veyr much out of favor these days) if the Flipper does not sell it.

 

 

 

 

 

Tue, 02/19/2013 - 10:18 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Unfortunately inflating out of this one will be impossible..... the problem is far too large to do that..... there is no growth.... there are no jobs... all inflation does is hasten the End Game

 

Don't get lulled to sleep by the MSM - after all that printing and zirp - THIS is the result?

World's top economies shrink for first time in four years The world's richest economies shrank for the first time in nearly four years in the final quarter of 2012, the Organisation for Economic Cooperation said on Tuesday, as the eurozone crisis continued to drag on global growth.

http://www.telegraph.co.uk/finance/financialcrisis/9879906/Worlds-top-ec...

 

I bought gold in 07 as an inflation hedge (and have topped up along the way) - I will buy more at 1600 - but now this is an armageddon hedge.

THERE IS NO WAY OUT OF THIS - A MAJOR ECONOMY IS GOING TO COLLAPSE - I DON'T KNOW WHICH ONE WILL BE FIRST - SPAIN, ITALY, JAPAN, FRANCE? 

It doesn't matter - because as a mate of mine who ran the bond division of a big bank put it to me in 07 "if a top 10 ecomomy defaults - there will be ---- mad max.  Of course govts know this and will throw everything at this'

Well they have thrown everything - and we are entering a global recession - with no way out

Tue, 02/19/2013 - 10:35 | Link to Comment the not so migh...
the not so mighty maximiza's picture

When a major goverment collapses the Dow will rally 500 ponits, thats the way they roll now.

Tue, 02/19/2013 - 14:28 | Link to Comment LibertarianX
LibertarianX's picture

Actually you may not be so far off

If there is a run out of Japan, or Europe, I can see  large amounts cash flying into the US, just because it can handle the volume....

There may well be a last big push on Treasuries.....before the final flight into Gold

 

 

 

 

Tue, 02/19/2013 - 13:03 | Link to Comment helping_friendl...
helping_friendly_book's picture

Japan started pinting 15 years ago, have been using QE ever since, they haven't collapsed. The FRBNY can and will do this as long as the Chinese allow it to happen. The day they don't they will start shorting Treasury Bonds and pricing oil in rmb (yuan)/Barrel.

US Reserve currency status will end. The FRBNY is still around because the Chinese allow those Joohs to keep it operating. We still have tonnes of Kumantang gold the Chinese will want it back.

Nixon brought some of their gold back during his China trip. It's the only reason he got his foot in the door. They will want the rest in due time.

This, of course, will make the Western central banks collapse because noone will buy their debt.

Tue, 02/19/2013 - 14:01 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

"Well they have thrown everything - and we are entering a global recession - with no way out"

....then suddenly, Mr Angus Podgorny, owner of a Dunbar menswear shop, receives an order for 48,000,000 kilts from the planet Skyron in the Galaxy of Andromeda.

Never give op - never surrender!

 

Tue, 02/19/2013 - 10:35 | Link to Comment WTFUD
WTFUD's picture

Send in the clowns muppet.

Tue, 02/19/2013 - 10:44 | Link to Comment 100pcDredge
100pcDredge's picture

Consequences... ahm... protuberances!

No... wait! Disturbances.

Tue, 02/19/2013 - 10:45 | Link to Comment SheepDog-One
SheepDog-One's picture

AH yes....'spring will surely bring reality crashing back in'.

Gee all last year it was 'It's all for the elections, and right after that reality comes swooping back in like a Shit Hawk'.

Yea I'll believe it when I see any prediction come true...until then same bullshit day after day.

Tue, 02/19/2013 - 10:51 | Link to Comment Desert Rat
Desert Rat's picture

Yeah, yeah, yeah... It's all FUBAR... we know... doesn't mean it's going to come crashing down anytime soon (as much as most of us would love to see that)... All of this "evidence" of our imminent demise is just a blueball cock tease... until it isn't... until then, BTFD.

Tue, 02/19/2013 - 10:52 | Link to Comment Sandy15
Sandy15's picture

IT'S JUST REDICULOUS HOW THE FED DRIVES UP THE MARKET EVERY DAY...........

I want a buying opportunity, but I'm not stupid, I will NOT buy at the top!!!!

Tue, 02/19/2013 - 10:56 | Link to Comment thismarketisrigged
thismarketisrigged's picture

@ sandy15, stay patient man. 

 

this has been frustrating for all of us, but u will be able to get back in when the inevitable crash happens, dow 5000, s&p 650. it may be frustrating to wait, but it will happen because this market has no fundementals and eventually it will have to.

 

be patient man, we will all be able to buy back at dirt cheap prices when the crash comes.

Tue, 02/19/2013 - 12:51 | Link to Comment helping_friendl...
helping_friendly_book's picture

They can keep printing money longer than you can stay solvent. I have been holding a short position (grudge) on the S&P since Oct 2011. My clock has been cleaned.I need six days of 10% drops each day and I'll be happy and the S&P will be 656. Right were it should be.

Tue, 02/19/2013 - 10:53 | Link to Comment thismarketisrigged
thismarketisrigged's picture

lol, the dow just went from up 13 pts to up 58 pts in like less than 30 seconds. can someone please tell me the great news i missed to propel this surge higher?

Tue, 02/19/2013 - 11:29 | Link to Comment Desert Rat
Desert Rat's picture

bc  the "NAHB Housing Market Index" came in below expectations... it's bizzaro world, bad news is great news... until it isn't... the new normal....

Tue, 02/19/2013 - 10:57 | Link to Comment q99x2
q99x2's picture

Bankster season to open soon in a country near you.

Tue, 02/19/2013 - 10:59 | Link to Comment thismarketisrigged
thismarketisrigged's picture

look at this bs aritcle from goldman,http://blogs.marketwatch.com/thetell/2013/02/19/goldman-sachs-eases-fear...

 

lol,fuck u goldman u fucking piece of shits. ya everything is fine.

Tue, 02/19/2013 - 11:04 | Link to Comment TheInfoman
TheInfoman's picture

We are in a stock market bubble. 

Tue, 02/19/2013 - 11:06 | Link to Comment Sudden Debt
Sudden Debt's picture

 It has been four years, four years of paper creation, four years of larger and larger lies, four years of fantasy balance sheets and today I call the ball; it is all about to end.

Just change a few words and it's starts sounding like my wife...

Tue, 02/19/2013 - 11:13 | Link to Comment Shizzmoney
Shizzmoney's picture

I dunno if this is a level, but pretty callus:

My side -- the pro-blank check bailouts side -- won. Let's move on.

If there is a God, any God: Karma, Irony, Schaedenfruede - PLEASE let this thing crash and prove these motherfuckers wrong.

Tue, 02/19/2013 - 11:29 | Link to Comment Smuckers
Smuckers's picture

BTFD?

Buy The Fucking Crater, more like.

Tue, 02/19/2013 - 11:34 | Link to Comment Desert Rat
Desert Rat's picture

Some day but not today... or next week... or even next month... this year...? some day...   Your choices are: 1) Stay the f' out of the sandbox 2) Play along but be ready whistle Dixie on short notice...

Tue, 02/19/2013 - 12:09 | Link to Comment espirit
espirit's picture

Sandbox is full of cat turds.

Tue, 02/19/2013 - 12:02 | Link to Comment Desert Rat
Desert Rat's picture

Fuckin fear monger... <--- This was for the current POTUS speech...

Tue, 02/19/2013 - 12:07 | Link to Comment shovelhead
shovelhead's picture

It all goes staggering along until the Great PetroDollar dump.

Then it gets real and Ponzi USA is over.

They won't even be able to give away the freshly printed paper.

 

Tue, 02/19/2013 - 12:12 | Link to Comment MedicalQuack
MedicalQuack's picture

Money out of the air is right.....let the algorithms make your money but it will fail in time as the arrays of data can no longer feed the structured queries being jammed in right and left.  Seems like satire today is becoming a better indicator than all the analytics all are doing.  Algorithms move money and dirty code written for profit has been around for a while but getting exploited big time now as "code for greed" seems to be everywhere. 

Privacy too with the CIA admitting they monitor Facebook and other social networks so what do they really get ouf of this the millions spent?  Look back at this Onion video that tells the story in satire about Facebook and the CIA.  Facebook by the way if you didn't catch it paid no income tax, but they sure made a lot of money selling data.  The Onion called it. 

http://ducknetweb.blogspot.com/2013/02/when-satire-becomes-realitycia-ad...

You wonder if all this money spent is worth it if satire does it better:)  All about Algo Duping...videos from people smarter than me explain.

http://www.ducknet.net/attack-of-the-killer-algorithms/

Selling data for profit has become a profitable obsession in the US, one that distracts from building companies and so forth as everything mines data instead of building factories and hiring employees as it's so easy and nobody regulates. 

Tue, 02/19/2013 - 13:15 | Link to Comment medium giraffe
medium giraffe's picture

"tearing at your juggler"

 

*sigh*... it's always the performace arts that take the hit first.

Tue, 02/19/2013 - 14:56 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

Chatted up the cute little blonde at a major Japanese car dealership in a Major Canadian city the other day.

 

"Pretty quiet, isn't it?" I stated, noticing there was nobody in the rather large show room. (I was there to thank the parts department for helping me.)

 

"It's always like this January, February March." she said, very quietly.

 

Then, after letting her hair down, and succumbing to my wiley charm, said, "It's been really, really, really quiet hear the last few weeks."

 

Do say?

 

•J•
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