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Uncharted Territory Cannot Go On Forever
Via Mark Grant, author of Out of the Box,
The greatest disconnect in the world today is the underlying economies of the world and the markets; all of the markets. This river is wide and getting wider given the money that the central banks are pushing downstream. The flood has reached all of the markets, Real Estate, the banks, many corporations, any and all borrowers with our incredibly low interest rates, but it has had little impact on the Main Streets of the planet. There is, in fact, a bubble of epic proportion.
It is not “irrational exuberance” but a quite rational placement of money that must go somewhere because it is not left in the sock drawer. The creation of money by the Fed, the ECB and Japan’s central bank keeps raising the tide but like all tides when it reverses course if will flow back out from the high water mark which has been created and with an equal force.
The reversal will come from an event or from the moment that the central banks reverse position or from the fall in the demand for goods and services as consumers/investors have less money to buy things. The one truism that can be counted on is that our current situation will not go on forever as many on Wall Street would have you believe. The one other long established truth that you can count on is that when this reversal comes that the “whoosh” of people trying to rush through the exit doors will be pronounced and startling.
Europe has been setting off the warning lights. Their economies are in trouble, real trouble. Total GDP for the EU-17 is -0.2% while Italy and Spain reported out matching drops of -0.5%. The entire Continent, with the barely escaping exception of Germany, is in recession. Europe, in fact, is now in its sixth straight quarter of recession and it is deepening and not lessening with each passing quarter. Japan teeters on deflation and has also charged into the money creation game and buoyed its equity market but I expect a result no different from Europe. Currency wars are now in play with the Euro and the Yen in a continuing drop against the Dollar.
America reports out a drop in our deficit and parades around the field in triumph but it is nothing more than our recent increase in taxes. Raise taxes; more Federal income and what did you think would happen in the short term? Hardly a surprise!
The world, in the eighteenth century, may have been a stand-alone place but it is not now. The only reason that all of this central bank money printing has been working is because there is no way to invest off-world. We are stuck with the options that we have and that is it. Conversely to the coordinated efforts of the central banks though is the moment in time when a reversal begins because it will affect everyone in the same manner. Even gold can no longer be counted on as an indicator because the physical demand for gold has prompted a mass sell off by Comex, JP Morgan and several central banks as physical gold must be delivered under contract and more cash is raised. We are living in an uncharted territory.
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Not forever, but maybe for 100 more years? At which point it won't matter to any of us.
That is certainly the hope of those involved; The collapse comes after they are dead. Unfortunately, their hope will be unfulfilled as the collapse is eminent.
Aren't markets forward looking? I've always been told by brokers that the market knows something before we all do. Therefore, isn't this the begining of hyperinflation? Seems it is to me.
And that hyperinflation is most prominent in Japan. There is no turning back for them now. If the bond-buying slows down they are screwed. If it doesn't slow down they are screwed. So they are screwed. Soon.
Print MOAR money... "Do it FOR THE CHILDREN"!
damn... if they print more fiat again... gold and silver will drop in price yet again....
“The only reason that all of this central bank money printing has been working is because there is no way to invest off-world.”
Invest in gold it comes from exploding stars.
It's uncharted territory, not unchartered territory.
Looks like it's been fixed since the tweet
Well now, SD, that would be just like Christmas, wouldn't it? Discount metals. I like it.
Define "soon"
before May 15, 2015 (within 2 years)
It's good to be... SCREWED!!
Yes, you are correct. The printing has only accelerated, not slowed.
Most likely, enough new money has been created to launch this thing to the moon. This time around, it has gone first to Government Unions and Finance. It just hasn't permeated the rest of system yet in the form of velocity.
It will!
The educational system shrugs.
...and soon too
I had to +1 you on that.
We are living in a world where people are waking up, maybe like 1% of the population, but by the time things collapse, it will be too late to be one of these "wakers" (someone who is awake to what the elites are doing)
All the while they are buying up houses out in the forest, they know what is coming, and want to live far away, so they will not have to endure all the ramifications of this money printing.
Talking of money printing the market keeps hitting new highs. Look now, the market has not had a correction for 177 days. => CLICK HERE TO FIND OUT STATS
Its crazy you know, and I feel sorry for peole who think they can just short the market and make crap loads. Do not fight the fed, and do not fight the rumors of them stopping QE when we all know they wont. Its simple math.
For the record, and for what it's worth, the expression is uncharted not unchartered. Carry on.............
uncharted : not on chart
unchartered : not on charter, (unauthorized).
Bozs are ze english mais, in zis frase it is bust to uze "uncharted", comme you say eet!
Brea, bûter en griene tsiis is goed Ingelsk en goed Frysk.
I bet that's the first time anything has been posted in Frisian on ZH.
Well motherfucker.
Europe sucks, US is fragile, China tanking. Central Banks are the only game in town. I saw this guy's comments this morning with the Prince song "Let's Go Crazy!" Good one.
http://confoundedinterest.wordpress.com/2013/05/15/lets-go-crazy-france-...
Another day, another punch in the face for the bears.
US dollar up, bonds up, stocks now up, and commodities, you guessed it, down again.
Even the central bankers could hardly have imagined it would go this well. In fact, it is going so well it must be scaring them just a little.
Good news to me. Quarterly profit share for board members of our company is coming up soon, so I will back the fucking truck up like a Teen Mom doing a porn for vivid......bitchez!
Exactly. If Japan can print for 25 years, we can print indefinitely. It's already been 40+.
Ben calls bullshit. He can print until the cash filled wheelbarrows buy bread.
"He can print until the cash filled wheelbarrows buy bread."
That's the point Bubble Bernanke, Evans, Dudley and Yellen stop.
It's the only point at which they stop.
Otherwise it's a never ending QE drug party.Coke and drinking until the heart attack occurs.
The point at which they stop will be far too late. We know this because it is already well past the point of reconciliation. Time is the only variable left in the equation.
Oh ye of little faith. Ben can stop inflation dead in its tracks in 15 minutes while standing on his head pissing in a teacup ... he said so ... or words to that effect.
Oh yeah ... just in case ... <end sarc/>
"He can print until the cash filled wheelbarrows buy bread."
so, when the Fed hands you dollars, Demand that they make them out of wheat!
the wheelbarrows will always have value!
Yeah, but can you eat a wheelbarrow?
(For those of you educated in public schools: sarc off!)
No, can't eat one. But I can sure put a lot of 'taters in one, down at the communal garden around midnight :)
I'm sure it must be true since I read it on the interwebz...
oh, wait a tick... what's this?
This will be a great opportunity for learning.
Im sure you will be saying the same thing on your death bed...
The closer people get to death,
the more peaceful they become.
It's the resistance of what is
that causes the distress.
Life is the resistance against death...it is inheriently stressful. Of course some prefer to be sheep being lead off the cliff...to each his own.
Perception is everything.
What we focus on.
How we interpret it.
How we respond.
Men are, for whatever reason,
particularly resistant to death.
Peace. I'm on your side.
Reality + Perception is everything and Perception must never forget it.
Denial of Death - Becker '70's.
I think this is not true for mass murdering sociopaths,
Stress doesn't originate in the "what is." It's roots are to to be found in the "What if."
It's uncharted because nobody who ventured there came back to tell about it. This will end in total disaster.
that's what Columbus's crew said....
For the native populations, it did end in disaster. I guess it depends on which side writes the history.
This is going to be the most epic financial bubble of doom the history of the world has or ever will know.
http://www.youtube.com/watch?v=deuC8GPr31A
Nah - they'll do it even BIGGER and BETTER the next time - whoever's left, 100 yrs from now. Last one out, turn off the light.
More useless dribble on ZH. No shit sherlock. Everything in life is a question of timing. Chance always favors the prepared. Get your tribe in order and know exactly what your counterparty risk is. The world will re-learn the true meaning of value when the supply lines break in earnest and the EBT cards stop working.
So you have any guesses on the timing?
No, and anyone who says that they do is trying to sell you something (like Graham Summers). Life is complex and difficult. Suck it up.
So when? Come on! Tell us! I'll pay ya 20 bucks.......40?
We all have guesses on timing. But they are just that - guesses. Sharing them - worse yet, defending them - simply labels oneself a fool.
I reckon they'll try to hold this bad boy off until after the next election cycle and hope the GOP catches the blame.
Gold in my mattress has -0- counterparty risk, except for the bitchez who meet my Doberman and arsenal. Stock up on OTV's with DAP and KPots as no ammo is left....what good are 2d Amendment pieces when all you have protecting you is a camo T-Shirt?
"Unchartered?" WTF? The term is "uncharted." God, the writing of financial analysts sucks ass. If you can't figure out how to write a sentence correctly why should anyone believe your other observations? Its the equivalent of being a hippie delivering a briefing on Wall Street. "Yeah, let's take the guy in Birkenstocks and reeking of patchouli seriously."
Never go full retartered?
Ma'am? Can you Re-tartar sauce me? My fish and chips needs it.
Yes, Unchartered. You know, territory that has not yet recieved it's certification to exist. Right?
Words being used incorrectly in an article makes me very flustrated.
How did everybody miss "eminent" when I think the proper spelling is "imminent". Yeah, hard to take someone seriously when the grammar sucks.
We didn't miss it; and by your corrective call out, it seems it was even clear to you what was meant. It's a blog. Get over it.
I'll take typos over incoherence any day.
Please stop taking this website seriously right now and head over to the New York Times where the grammar is impeccable. Also, let us know if you'd like a full refund of your subscription.
never the less, gramaar sould be taken sirious :)
once you go 'POLICE STATE' ~ you never go back...
I'm into black guys. I like how they smell.
Ah yes, the heady aroma of leather belts, kevlar armor and gunpowder...
Once I lost tons of gold on an unchartered boat. But I made up for it by printing a trillion dollars.
He's quite serious. I got my refund this morning with a bonus free month.
It's the equivalent of being ..... there, I corrected it for ya !
Just luck at the bubble stocks go (LNKD, and Elon Musk specials TSLA and SCTY today). It sure feels like forever to me.
I hope folks aren't awaiting some 5,000 point drop in the Dow in 3 days. The global economy IS collapsing - by historical standards pretty rapidly and to depths not experienced in a long, long time (if ever). The Rubicon is distantly in the rear-view mirror, but things do not propagate instantaneously.
It's unfolding more like the last 30 minutes of Force 10 from Navarone than the last 3 of Knowing.
"Kook Fringe" is getting mainstream and closing in on the truth of inevitability:
http://reddragonleo.com/2013/05/06/we-are-just-weeks-away-from-the-start-of-a-200-or-more-point-drop-in-the-spx/
Lol
Yeah, I can see CNN and Fox and the networks airing a story about Bilderburgs with alien Reptilians and secret messages from Homer Simpson...
My experience is that they shy away from going full retard.
Mission control, we have a flow problem...
India in depseration mode as they too are now going to issue "floaters"
India plans inflation-linked bonds to end country's love affair with gold; The Reserve Bank of India said the first tranche of inflation-indexed bonds, a new type of debt for India, would be released on June 4.
World gold council pushing gold backed bonds for Italy
Why would Treasury want to issue floaters
The U.S. treasury has had floaters for quite some time, they are called "TIPS",
So has China. They're called pigs and they float down rivers by the thousands.
** snicker **
floaters arent the same as principal protection. Ask Mario
The last synchronized global bedshit was WWII and that was pretty epic but was reasonably quick timewise.
This next one could last quite a bit longer.
"We Will See The Collapse Of All Paper Money In A Period Of Two Years Maximum"
Exactly. The only way Bernanke, Evans, Dudley and Yellen stop printing.
"Two Years Maximum"
Who's thinking this thing will stay up for two years?
Only people with money Like Kyle Bass can survive waiting for the HUGE bug named Japan finally splats on some windshield. How many others have been saying that they are going to explode any day now, besides they now sell more adult diapers than children's diapers, so maybe everybody's $#!tting their pants there now..Buy YCS too!
Let’s Dismantle IRS: This Racket is Busted
http://supremelaw.org/press/rels/dismantle.irs.htm
31 Questions and Answers about the Internal Revenue Service
http://www.supremelaw.org/sls/31answers.htm
Revoke your voluntary election to pay Federal income Taxes
http://www.weissparis.com/
The IRS is evil.
No, it's unconstitutional. The people who run it are evil (and corrupt).
Irwin Schiff is doing God's work http://www.youtube.com/watch?v=kZX1bvj_z0E
Just flat tax 15% on all income.
I cannot comprehend how the current tax laws are constitutional since it treats people unequally. It is the same as if you pass a DUI law where those of Irish descent are allowed a .16 and everyone else gets .08.
What is Income? It certainly is not exchanging your labor for compensation. Even the supreme court has ruled on that issue numerous times
Agreed. Very important to distinguish between 'incomes' and 'wages'. Income is what is earned from investments (rental income, capital gains, etc.). A wage is what a worker exchanges for his/her labor. The laborer has been forced to pay 'Wage Tax' with the real threat of a prison sentence and fines.
i think the Irish would be ok with that new DUI law.
And now they are talking about lowering that to .05%....I am >German Irish..I would not pass ever..even if I didn´t have a drink for two days....pickled forever i think I am...
"because the physical demand for gold has prompted a mass sell off"
this comment on gold doesn't make sense. .... physical demand has prompted a mass sell off.... no it didn't. the sell off was orchestrated to bailout trapped banks and other insiders, including exchanges.
all because of wrong monetary and economic policies in these last fourty years. Now what central bank is doing is nothing more thab buying time until the diesel eventually says "BOOM!"
Awesome comment..!! Best of the day...!!
First honest insight seen here.
i believe that you summed this up nicely. Kudos.
a bit too concise methinks.
ZH is 9 hrs behind this - DHS raided Mt Gox (probably over the $75 odd million lawsuit being filed against them warning - Gawker crap link)
Cut through all the bullshit and get right to the point. Technology may evolve and change but mankind hasn't. Look at all things in those terms and this shit makes complete sense.
Did they use drones?
Its as if TPTB made ZH an offer they couldn't refuse & put Al Gore on the board.
How is that incremental news to what was posted here: The US Regulatory Vice Closes On Bitcoin
It is quite clear that the regulators will shut down all BitCoin venues sooner or later. And if it is not clear by now to a select few, it never will be.
Yes, it wasn't a snark at ZH (although it attracted the weebles), you've given more than fair warning.
It was more the angle that it was the DHS that moved in, not the CFTC / FBI by targeting Dwolla (not Japan based Mt. Gox, who had their own visit by groups unknown). They even foreshadowed it on April 1st [PDF - warning, yes, that's the Department of Homeland Security's website]. (I love the fact their daily update uses common websites as sources. Security Theatre alert.). I presume they're using the Patriot Act title III, subsection C.
This suggests perhaps a broader intolerance towards grey money being moved upon, which is ironic given the HSBC [Wachovia ad nauseam] fines. It also raises the question over whether or not those using the Mt. Gox <> Dwolla route are themselves open to prosecution by the DHS. Which has a slightly larger chilling effect than just shutting down the exchanges (or access to said exchanges).
At this time, you are still able to take dollars out of Mt Gox via wire transfer and so forth, the question for how long is an open one. I hope the geek revolutionaires know that the DHS plays hardball.
Carry on, I shall slink off.
Here is my prediction: Bitcoin is like BitTorrent in its ability to be untouchable.
However, regulators will eventually shut down all of the obvious gateways that connect the dollar to bitcoin over the internet (Mt. Gox, Coinbase, Bitstamp, ect.), possibly to the point where the only way to exchange dollars for bitcoin in the near future will be through P2P exchanges like http://bitcoin-otc.com/ and in-person local exchange. Consenting individuals using PayPal, Cash, or Wire Transfer will always be a doable in a direct P2P form unless something goes wrong with those means of exchange as well.
All in All, this is bullish for the USD/BTC rate!
Uncharted territory.... Like Yellen going down on Bernanke?
Why? I just ate eggs, bro.
I wish had the power to unread something.
Boots on the ground report: Getting a lot of credit card applications in the mail again.
Off topic but something totally in line with free markets and open information for consumers making informed choices if they so choose to participate in TRUE freedom of choice. Good information is always the leveler of the playing field when everyone has access to the same information.
http://www.forbes.com/sites/clareoconnor/2013/05/14/new-app-lets-you-boy...
New App Lets You Boycott Koch Brothers, Monsanto And More By Scanning Your Shopping CartIn her keynote speech at last year’s annual Netroots Nation gathering, Darcy Burner pitched a seemingly simple idea to the thousands of bloggers and web developers in the audience. The former Microsoft programmer and congressional candidate proposed a smartphone app allowing shoppers to swipe barcodes to check whether conservative billionaire industrialists Charles and David Koch were behind a product on the shelves.
Burner figured the average supermarket shopper had no idea that buying Brawny paper towels, Angel Soft toilet paper or Dixie cups meant contributing cash to Koch Industries through its subsidiary Georgia-Pacific. Similarly, purchasing a pair of yoga pants containing Lycra or a Stainmaster carpet meant indirectly handing the Kochs your money (Koch Industries bought Invista, the world’s largest fiber and textiles company, in 2004 from DuPont).
At the time, Burner created a mock interface for her app, but that’s as far as she got. She was waiting to find the right team to build out the back end, which could be complicated given often murky corporate ownership structures.
She wasn’t aware that as she delivered her Netroots speech, a group of developers was hard at work on Buycott, an even more sophisticated version of the app she proposed.
“I remember reading Forbes’ story on the proposed app to help boycott Koch Industries and wishing that we were ready to launch our product,” said Buycott’s marketing director Maceo Martinez.
The app itself is the work of one Los Angeles-based 26-year-old freelance programmer, Ivan Pardo, who has devoted the last 16 months to Buycott. “It’s been completely bootstrapped up to this point,” he said. Martinez and another friend have pitched in to promote the app.
Pardo’s handiwork is available for download on iPhone or Android, making its debut in iTunes and Google Play in early May. You can scan the barcode on any product and the free app will trace its ownership all the way to its top corporate parent company, including conglomerates like Koch Industries.
Once you’ve scanned an item, Buycott will show you its corporate family tree on your phone screen. Scan a box of Splenda sweetener, for instance, and you’ll see its parent, McNeil Nutritionals, is a subsidiary of Johnson & Johnson .
Even more impressively, you can join user-created campaigns to boycott business practices that violate your principles rather than single companies. One of these campaigns, Demand GMO Labeling, will scan your box of cereal and tell you if it was made by one of the 36 corporations that donated more than $150,000 to oppose the mandatory labeling of genetically modified food.
Deciding to add that campaign to your Buycott app might make buying your breakfast nearly impossible, as that list includes not just headline grabbers like agricultural giant Monsanto but just about every big consumer company with a presence in the supermarket aisle: Coca-Cola, Nestle, Kraft, Heinz, Kellogg’s, Unilever and more.
Buycott is still working on adding new data to its back end and fine-tuning its information on corporate ownership structures. Most companies in the current database actually own more brands than Buycott has on record. The developers are asking shoppers to help improve their technology by inputting names of products they scan that the app doesn’t already recognize.
And if this all sounds worthy but depressing, be assured that your next trip to the supermarket needn’t be all doom and gloom. There are Buycott campaigns encouraging shoppers to support brands that have, say, openly backed LGBT rights. You can scan a bottle of Absolut vodka or a bag of Starbucks coffee beans and learn that both companies have come out for equal marriage.
“I don’t want to push any single point of view with the app,” said Pardo. “For me, it was critical to allow users to create campaigns because I don’t think its Buycott’s role to tell people what to buy. We simply want to provide a platform that empowers consumers to make well-informed purchasing decisions.”
Forbes reached out to Koch Industries and Monsanto for comment and will update this story with any responses.
Update: Tuesday’s traffic surge is causing some problems for Buycott. Pardo says he’s working to fix issues with the Android app in particular. “The workload is a bit overwhelming now,” he said. “For example, our Android app was just recently released and the surge of new users today has highlighted a serious bug on certain devices that needs to be fixed immediately. So all other development tasks I was working on get put on hold until I can get this bug fixed.”
What an absolute bunch of shit. Try this, boycott all you want. Now, start and develop your own "friendly" corporations to replace those nasty corporations. Happy starving.
It is not as simple as that and you know it. People are constrained by finances when they can't supplement their diets by growing their own food. Yuppie food isn't cheap...
Let me take you down
‘Cause I'm going to
Strawberry Fields
Nothing is real
And nothing to get hung about
Strawberry Fields forever
Living is easy with eyes closed
Misunderstanding all you see
It's getting hard to be someone
But it all works out
It doesn't matter much to me
Let me take you down
‘Cause I'm going to
Strawberry Fields
Nothing is real
And nothing to get hung about
Strawberry Fields forever
No one I think is in my tree
I mean it must be high or low
That is you can't, you know, tune in
But it's all right
That is I think it's not too bad
Let me take you down
‘Cause I'm going to
Strawberry Fields
Nothing is real
And nothing to get hung about
Strawberry Fields forever
Always, no sometimes, think it's me
But you know I know when it's a dream
I think I know I mean a yes
But it's all wrong
That is I think I disagree
Let me take you down
‘Cause I'm going to
Strawberry Fields
Nothing is real
And nothing to get hung about
Strawberry Fields forever
Strawberry Fields forever
Strawberry Fields forever
Ok, here is the current scenario:
The bank machine has been spewing out $1000 for every one dollar asked for. A lot of wise ZH posters stand around and point at it, sagely yammering "this is not right", "this cannot last", "it will run out". Meanwhile even wiser guys are backing their trucks up to the machine and loading up. Meanwhile, the bearded guy behind the machine keeps filling the machine up.
The boyz with the trucks buy fuel, food, boats, castles and islands with the impossible-scenario cash and off they go. Inflation? Pandemic? Riots? Famine? They don't give a shit now because they have their private armies and islands.
The rest of us? The left behind? ....We were oh so wise.
Now you know why me and the wife work so hard and convert to hard assets. Good post.
Zyklon-B, baby. Make it a triple...
Time for an alternative currency. Barter is good, they can't tax it.
I'm taking my toys and I am going home.....
OK, so a few of us have happened to notice that the emperor is nude....can anyone give a date and time to the herd seeing it the same way?
Everyone assumes that the "bubble" will burst....maybe not, maybe it gets gradually re-compressed....maybe our bubble gets thrown into a hyperbaric chamber?
Google tops $900 weeeeeeeeeeee.....
AAPL and GLD...!!
Nice.
Let us know when the app for boycotting Soros comes out.
Just close your eyes, hold your nose, pull the trigger and BUY. The markets wil never go down again. Why? Becasue Benny and the CB'ers have ordained otherwise. Now, that didn't hurt much, did it? Besides, you'll love living in the new socialist world where your life is planned for you. You won't need a brain anymore; so you can donate it to science. You will be "Borged" into the zombie state of existence.
Grammar Nazis are just mental midgets trying to show everyone how smart they are. I know I am more smarter then Grammar NAZIs.
than, smarter than. comparison, not time