If History Is Any Lesson - Naaah!

Tyler Durden's picture

Submitted by Mark J. Grant, author of Out of the Box,

“Private were you about to shoot that man?”
“No Sir, just a warning shot through the skull.”
I would say that we are in the void; a place where not much matters. The actions of the world’s central bankers have created not only a global financial bubble but a market assumption that everything is backstopped and that nothing can go seriously wrong. Equities rise, bonds compress and everyone plays along. The last time I felt so strongly about this was in the infamous era of “money for nothing, checks for free” just prior to the subprime prick that sent the financial markets into the balloon careening around the room event.
"He had noticed that events were cowards: they didn't occur singly, but instead they would run in packs and leap out at him all at once."
In the first instance the “easy money” was created by the banks, faulty securitizations created by the investment banks and the notion that Real Estate could do nothing but go up in price. In our current circumstances it is being created by the central banks out of thin air, a spell of hocus-pocus and a printing press plugged into an electrical outlet. The only worry now seems to be that eventually we might run out of paper for the currencies. Then we are engaging in daily auctions evaluating whether their piece of paper is more valuable than our piece of paper which used to be based upon some sound and fundamental judgments and now seems, to me, to have all of the rationale of dancing with the Devil because you are bored. Not the wisest of choices.
“You are Mark Grant then? Where do you come from?”
“Revelations, Chapter Six”
In fact Japan, and Europe soon in my estimation, will be wandering around whispering in your ear that their blue piece of paper is not worth nearly so much and that it should decline against the green piece of paper. They will tell you that the American green ink is more expensive, that certain rare and costly trees comprise our paper and that the Japanese characters on the paper cost far less than the English alphabet that is used and, hence, worth less. What’s next I wonder; a massive devaluation by every country on Earth on the same day at the same moment? I put nothing past these people.
“I do not think this will happen but if Berlusconi is elected Pope it may be the first sign of the Apocalypse.”
                          -The Wizard
I watch in fascination how the world evolves some days. All of the deficit numbers originally demanded by the Germans for the countries in Europe have gone the way of the Dodo. Extinct! Oh they are still there and remembered and foisted upon the Press but they now have all of the value of the currency of Yugoslavia or some other country no longer in existence. It is Ben and Mario’s ice cream store; open twenty-four seven, dessert for breakfast, lunch and dinner and the “full faith and credit” promise that you won’t put on an ounce. It is a world full of “non-conforming loans” and you might wish to remember what happened last time.
"He'd been wrong, there was a light at the end of the tunnel, and it was a flamethrower."
                   -Terry Pratchett

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ziggy59's picture

Reminds me of the no fat yogurt Seinfeld episode...
What can go wrong?

Cognitive Dissonance's picture

"It is Ben and Mario’s ice cream store; open twenty-four seven, dessert for breakfast, lunch and dinner and the “full faith and credit” promise that you won’t put on an ounce."

Party hearty boys. The music hasn't stopped.......yet.

Meatier Shower's picture

Hmmm... I seem to have put on quite a few ounces, but then I lost them in a tragic boating accident.

Whatta's picture

pffffft. What can possible go wrong with trillions of new dollars to spend? Ben-The-Bids-Up has our back.

duo's picture

If you're going to print, use something that burns cleanly and doesn't give off toxic smoke.  Who knows what heavy metals are in the inks of those fancy Euro and USD notes.

If I have to burn the money to stay warm, I want to pollute as little as possible.

moonshadow's picture

i think u mean 'burn the paper'...fixed it

bank guy in Brussels's picture

Mark Grant says so little other than expressing his 'feelings', tossed in with some pop-culture or other quotes to seem 'cool'

But there is very little content

And he has been hugely wrong if he does have a claim

Like when he touted for months how Germany would supposedly call a halt and say a big Nix to the Bailout Machine

Well he had that big whopper wrong


Kayman's picture

So, Bank Guy, are central banks too big to fail ?

madcows's picture

Well, they control the printing presses, so I'd say In a Zimbabwian sense, no.  Everything is relative.

Cdad's picture

"When sorrows come, they come not single spies.  But in battalions." 

Lord Of Finance's picture




"History is a gallery of pictures, in which there are few originals, but many copies."



   de Toqueville

johnQpublic's picture

"history is but a set of lies, agreed upon."---napolean bonaparte

tony bonn's picture

"..It is a world full of “non-conforming loans” and you might wish to remember what happened last time..."

and most of those are on the fed's balance sheet, meaning that it is insolvent - the world's bad bank of first resort.....europe is on the precipice - god help us when one of those octuple dip ice cream cone scoops falls off the chocolate dipped sugar cone and the fat pudgy kid bends over to get it....

shinobi-7's picture

Japanese printing machines faster than European ones....

I need more cowbell's picture

Blankfeld for pope; he is already well down the curve doing god's work. And who better to manage all that Vatican gold, and handle the as-yet-fully-public financial scandal. He is already infallible as well. Finally, a Jewish pope would be the blackest of swans.

busted by the bailout's picture

 "The last time I felt so strongly about this was in the infamous era of “money for nothing, checks for free” just prior to the subprime prick that sent the financial markets into the balloon careening around the room event."

This time it's different: that bubble ended when bankers' greed turned into bankers' fear and markets froze as a result.  But governments have no fear because they do not rely on others for revenue and profit, they can simply print money as needed. 

Therefore, I see no pin to prick this bubble.  A global currency crisis / loss of faith in fiat would do it, but there are no signs of that now.

Kayman's picture

" But governments have no fear because they do not rely on others for revenue and profit, they can simply print money as needed."

So, by extension, governments don't need to tax because "they can simply print money as needed"

I think we must be in full retard now.

busted by the bailout's picture

I believe my point is clear enough for most to understand, and I suspect many people who are not retarded agree with it; whereas most who are retarded, unfortunately, probably cannot comprehend it sufficiently to agree.

All Risk No Reward's picture

Busted, your point is clear but it is inaccurate.  I consider us on the same team here, so please don't take offense as I clear up the information presented.

1. Governments are not the source of money, outside of coins.  Private interests control the money supply of America and the world through private banking institutions and the Federal Reserve System.  Governments are powerless when it comes to money - wilfully powerless.

Government has no control over Fed's actions per current government arrangement:


So the government can't do chit at this point.

2. Money is NOT printed.  Rather, it is issued as debt, repayable in full with interest on top.  The system is a fraud guaranteed to bankrupt the host nation.

Debt Money Tyranny


3. I hear people speak of losing confidence in the currency.  They usually repeat falsehoods like "the government prints money."  Money is debt.  Losing confidence in money is equivalent to losing confidence in debt.  Try losing confidence in thay mortgage and car loan and see what happens\, OK?  You'll lose your chit.  So will society.

In theory, the government could take this power back, but that's been true for 100 years and nobody in government has ever revealed Debt Money Tyranny to you.  If you thiknk they don't know, send them that chart.  If you do, though, don't expect them to kick out the international banking cartel from the definition of currency and credi because they won't.  They might put you on a watch list, though.

Politicians are only in office because the banksters support them.  They control/finance the media and the campaigns of their operatives PRECISELY so that they won't do what you suggest.  They aren't stupid!

People with ties to the CIA have been in the White House since at least 1980.  That's 33 years running.  Kennedy bucked the CIA and had his head blown off.

I recommend you research the CIA's creation and its ties to the owners of the mega banks that currently rule over you via deception.

Government, like Monsanto, JP Morgan, Goldman Sach, Haliburton, Exxon, Coke, Pepsi, etc.... are all subdivisions of BIGGEST FINANCE CAPITAL.

Carlin called these people "THE OWNERS."

Carlin isn't joking...


“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
? Ezra Pound

"If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation.
This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in
circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a
permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but
there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present
civilization may collapse unless it becomes widely understood and the defects remedied very soon." ~Robert Hemphill, Credit Manager of Federal Reserve Bank, Atlanta, Ga

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”
~Henry Ford

shinobi-7's picture

There won't be any signs until it happens but true enough we may still have some time left. The market certainly believes it.

hooligan2009's picture

used to be "chicks for free" but i guess the cat got the cream already :>)

MSimon's picture

Buy hemp. The Republicans are working to legalize it. Maybe they know something.



jimijon's picture

I have been investing in my index:

MJNA (minus a damn DTC Chill at the f#$k at ameritrade)






Buy and wait for a transient spike.. then sell and wait... and then buy after the transient crash.



jimijon's picture

I wonder if US Dollars burn black and Euros burn white.

Ignatius's picture

This is tough, in a short article with several 'money quotes', but here goes:

"What’s next I wonder; a massive devaluation by every country on Earth on the same day at the same moment? I put nothing past these people."

Begging the question, devalue to what?

Gold.  Or more specifically,


Pegasus Muse's picture

Snip from latest newsletter.



The Fed’s Exit     March 2013

Over the last forty years, the rate of price inflation has been about 2% per year (about a 125% compounded growth rate), which has diminished the purchasing power of the USD by about 55%. In other words, one dollar in 1972 is worth about forty-six cents today. Policy-administered US dollar devaluation would apply the same principle, but the inflation would occur suddenly and, discretely. Following a hyper-inflationary episode, the public would be conditioned for another resetting of the global monetary system (its fifth in one hundred years).

Central banks, led by the Fed, would have to re-price and monetize an equity asset rather than debt assets. The only monetize-able equity asset on official balance sheets is gold (which may explain why central banks of emerging economies are voracious buyers presently)

Re-monetizing gold would be popular within indebted advanced economies and therefore politically expedient. While net savers of US dollars would be harmed from the devaluation, net debtors would be helped. (The burden of repaying existing debts would be greatly diminished vis-à-vis inflated wages and asset prices.) Thus, those holding cash and bonds would suffer and those with mortgage, school, auto, and consumer debt would benefit. On balance, a policy-administered USD devaluation would be greatly welcomed within advanced economies. It would position politicians and central banks as economic saviors.

more here: http://www.gata.org/files/QBAMCOTheFedsExit-03-13-2013.pdf 

bunnyswanson's picture


As the yen continued sliding against the US dollar and other global currencies on Friday, China's Commerce Minister Chen Deming urged major governments to stop depreciating their currencies under efforts to boost their exports.

"I'm worried that competitive devaluation will lead to oversupply of money and will have a negative effect on global economic growth," he told reporters in Beijing, responding to a question about Japan's monetary policy.


FubarNation's picture

I knew just from the first few sentences this was going to be a post from Mark 'The sky is falling' Grant.


I think that posts like this fall on deaf ears here now at ZH.  It's not like we all haven't heard this story before.


Solutions is what we need my friend....solutions.

Kayman's picture

The solution is in front of you.  Bernanke is printing an economy. No need to work anymore.

eclectic syncretist's picture

I'm getting loan offers every day.  Love to send them back with a little "no thanks" note so that they have to pay the return postage and hire someone to open them.  I actually saved one and posted it in a prominent place because it said in huge letters "GET YOURSELF OUT OF DEBT WITH A LOAN FROM US".  I laugh every time I see it.

FubarNation's picture

I don't listen to the radio much (exept for the classical station) but I did hear an advert for a home equity loan from a bank the other day.  Ah the memories.

yogibear's picture

Japan has been spending twice as much as it takes in for 5 years.



Tick, tick, tick, tick.......... 

The Japanese bomb can go off at any time.

Nice big implosion.

IamtheREALmario's picture

I have to believe that Berstinkie, Dragqueen and Obummer et al all know where this is headed and are intentionally guiding it in that direction with all haste.

September 2015 ... judgment day

NoDebt's picture

Agreed with them all knowing this is the end game.  Disagree they are trying to hasten it.  Quite the contrary, they are playing "hot potato" (or "hot potatoe", if you prefer the Dan Quale spelling) and trying to keep it at bay as long as they can.  Make it slow and gradual so nobody can point the finger at one guy and say "it's his fault."

Much like the official report on Benghazi blamed "the system" for the failure and deaths, not any individuals.  Then the whole thing was quickly swept off the stage.  So will it be with our nation's slow gind into poverty and irrelevance.  Nobody to blame, no big crash, nobody going to jail or even losing an election.  Just a "system" that failed us and.... time to turn the page.

shovelhead's picture


"Ok, Everybody! we're gonna knock 3 zeros off the currencies in 3...2...1... Bam.

Problem solved."

"Need a loan?"


Dixie Rect's picture

Feed tuna mayonaisse, cut out a step when making tuna salad....wrap tuna sandwich in edible paper... better yet, print dollar bills on edible paper...wow, I'm solving all of the worlds problems... (leaked memo from the desk of Ben Bernank)

Snoopy the Economist's picture

Nah, just print directly onto toilet paper - that saves a step.

CaptainSpaulding's picture

"I swear, It's not a world of men. Its's not a world of men , Machine"

 - Ricky Roma

sansnobel's picture

Next time the music stops there will be no going back.  Central Bankers and Politicians of every color better have a damn good escape plan because they will be hunted down and tortured and burned at the stake.  And probably a few of the media whores who have been running cover for them for the last 100 years too.

gdiamond22's picture

Just an Austrian way of thinking, living in a Keynesian world. Trade what feels wrong (buy stocks) own what feels right (gold, guns, bullets) and drink - a lot.

Paracelsus's picture

Thank goodness Greece has some of those expensive German diesel submarines.Should come in handy.Paid for in borrowed Euros?

Thank goodness we in the USA have the Space Station,F-35 Raptor jets,etc.,and 800 overseas military bases.


Just sign me,Credit Anstalt.

kchrisc's picture

The guillotines are on order.          hujel