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Uncharted Territory Cannot Go On Forever

Tyler Durden's picture





 

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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Wed, 05/15/2013 - 09:49 | Link to Comment semperfi
semperfi's picture

Not forever, but maybe for 100 more years?  At which point it won't matter to any of us. 

Wed, 05/15/2013 - 09:54 | Link to Comment Clint Liquor
Clint Liquor's picture

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.

Wed, 05/15/2013 - 09:59 | Link to Comment nope-1004
nope-1004's picture

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.

 

Wed, 05/15/2013 - 10:08 | Link to Comment semperfi
semperfi's picture

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.

Wed, 05/15/2013 - 10:14 | Link to Comment francis_sawyer
francis_sawyer's picture

Print MOAR money... "Do it FOR THE CHILDREN"!

Wed, 05/15/2013 - 10:32 | Link to Comment Sudden Debt
Sudden Debt's picture

damn... if they print more fiat again... gold and silver will drop in price yet again....

 

Wed, 05/15/2013 - 10:39 | Link to Comment Badabing
Badabing's picture

“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.

Wed, 05/15/2013 - 19:06 | Link to Comment UnpatrioticHoarder
UnpatrioticHoarder's picture

It's uncharted territory, not unchartered territory.

Looks like it's been fixed since the tweet

Wed, 05/15/2013 - 12:23 | Link to Comment Professorlocknload
Professorlocknload's picture

Well now, SD, that would be just like Christmas, wouldn't it? Discount metals. I like it.

Wed, 05/15/2013 - 10:20 | Link to Comment azzhatter
azzhatter's picture

Define "soon"

Wed, 05/15/2013 - 10:24 | Link to Comment semperfi
semperfi's picture

before May 15, 2015  (within 2 years)

Wed, 05/15/2013 - 10:32 | Link to Comment Sudden Debt
Sudden Debt's picture

It's good to be... SCREWED!!

Wed, 05/15/2013 - 10:10 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, you are correct.  The printing has only accelerated, not slowed.

Wed, 05/15/2013 - 13:32 | Link to Comment Professorlocknload
Professorlocknload's picture

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!

 

Wed, 05/15/2013 - 10:06 | Link to Comment Gadocat99
Gadocat99's picture

The educational system shrugs.

Wed, 05/15/2013 - 10:07 | Link to Comment astoriajoe
astoriajoe's picture

...and soon too

Wed, 05/15/2013 - 10:35 | Link to Comment Lets Buy The Dip
Lets Buy The Dip's picture

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. 

Wed, 05/15/2013 - 09:54 | Link to Comment What is The Hedge
What is The Hedge's picture

For the record, and for what it's worth, the expression is uncharted not unchartered. Carry on.............

Wed, 05/15/2013 - 09:59 | Link to Comment falak pema
falak pema's picture

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! 

Wed, 05/15/2013 - 11:57 | Link to Comment Spastica Rex
Spastica Rex's picture

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.

Wed, 05/15/2013 - 13:20 | Link to Comment dontgoforit
dontgoforit's picture

Well motherfucker.

Wed, 05/15/2013 - 10:01 | Link to Comment PiltdownMan
PiltdownMan's picture

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-...

Wed, 05/15/2013 - 10:11 | Link to Comment gjp
gjp's picture

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.

Wed, 05/15/2013 - 10:25 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

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!

Wed, 05/15/2013 - 10:18 | Link to Comment edifice
edifice's picture

Exactly.  If Japan can print for 25 years, we can print indefinitely.  It's already been 40+.

Wed, 05/15/2013 - 09:49 | Link to Comment IridiumRebel
IridiumRebel's picture

Ben calls bullshit. He can print until the cash filled wheelbarrows buy bread.

Wed, 05/15/2013 - 09:56 | Link to Comment yogibear
yogibear's picture

"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.

Wed, 05/15/2013 - 10:24 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

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.

Wed, 05/15/2013 - 12:50 | Link to Comment Liquid Courage
Liquid Courage's picture

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/>

Wed, 05/15/2013 - 10:31 | Link to Comment SunRise
SunRise's picture

"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!

Wed, 05/15/2013 - 10:29 | Link to Comment Sudden Debt
Sudden Debt's picture

the wheelbarrows will always have value!

Wed, 05/15/2013 - 11:31 | Link to Comment Uchtdorf
Uchtdorf's picture

Yeah, but can you eat a wheelbarrow?

(For those of you educated in public schools: sarc off!)

Wed, 05/15/2013 - 13:38 | Link to Comment Professorlocknload
Professorlocknload's picture

No, can't eat one. But I can sure put a lot of 'taters in one, down at the communal garden around midnight :)  

Thu, 05/16/2013 - 10:20 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

I'm sure it must be true since I read it on the interwebz...

oh, wait a tick... what's this?

Wed, 05/15/2013 - 09:50 | Link to Comment freewolf7
freewolf7's picture

This will be a great opportunity for learning.

Wed, 05/15/2013 - 10:06 | Link to Comment PhilB
PhilB's picture

Im sure you will be saying the same thing on your death bed...

Wed, 05/15/2013 - 10:10 | Link to Comment freewolf7
freewolf7's picture

The closer people get to death,

the more peaceful they become.

It's the resistance of what is

that causes the distress.

 

Wed, 05/15/2013 - 10:18 | Link to Comment PhilB
PhilB's picture

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.

Wed, 05/15/2013 - 10:26 | Link to Comment freewolf7
freewolf7's picture

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.

Wed, 05/15/2013 - 10:36 | Link to Comment SunRise
SunRise's picture

Reality + Perception is everything and Perception must never forget it.

Wed, 05/15/2013 - 13:23 | Link to Comment dontgoforit
dontgoforit's picture

Denial of Death - Becker '70's.

Wed, 05/15/2013 - 10:22 | Link to Comment Bastiat
Bastiat's picture

I think this is not true for mass murdering sociopaths,

Wed, 05/15/2013 - 13:41 | Link to Comment Professorlocknload
Professorlocknload's picture

Stress doesn't originate in the "what is." It's roots are to to be found in the "What if."

 

Wed, 05/15/2013 - 09:50 | Link to Comment agent default
agent default's picture

It's uncharted because nobody who ventured there came back to tell about it.  This will end in total disaster.

Wed, 05/15/2013 - 10:34 | Link to Comment Sudden Debt
Sudden Debt's picture

that's what Columbus's crew said....

Wed, 05/15/2013 - 12:09 | Link to Comment GeezerGeek
GeezerGeek's picture

For the native populations, it did end in disaster. I guess it depends on which side writes the history.

Wed, 05/15/2013 - 09:51 | Link to Comment Burt Gummer
Burt Gummer's picture

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

Wed, 05/15/2013 - 13:24 | Link to Comment dontgoforit
dontgoforit's picture

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.

Wed, 05/15/2013 - 10:04 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

Wed, 05/15/2013 - 10:07 | Link to Comment SMG
SMG's picture

So you have any guesses on the timing?

Wed, 05/15/2013 - 10:13 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

Wed, 05/15/2013 - 10:22 | Link to Comment IridiumRebel
IridiumRebel's picture

So when? Come on! Tell us! I'll pay ya 20 bucks.......40?

Wed, 05/15/2013 - 10:26 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

We all have guesses on timing.  But they are just that - guesses.  Sharing them - worse yet, defending them - simply labels oneself a fool.

Wed, 05/15/2013 - 13:26 | Link to Comment dontgoforit
dontgoforit's picture

I reckon they'll try to hold this bad boy off until after the next election cycle and hope the GOP catches the blame.

Wed, 05/15/2013 - 18:18 | Link to Comment Tzanchan
Tzanchan's picture

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?

Wed, 05/15/2013 - 09:57 | Link to Comment Buzzworthy
Buzzworthy's picture

"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."

Wed, 05/15/2013 - 09:58 | Link to Comment TN Jed
TN Jed's picture

Never go full retartered?

Wed, 05/15/2013 - 10:21 | Link to Comment IridiumRebel
IridiumRebel's picture

Ma'am? Can you Re-tartar sauce me? My fish and chips needs it.

Wed, 05/15/2013 - 10:04 | Link to Comment NoDebt
NoDebt's picture

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.

Wed, 05/15/2013 - 10:24 | Link to Comment solidus
solidus's picture

How did everybody miss "eminent" when I think the proper spelling is "imminent".  Yeah, hard to take someone seriously when the grammar sucks.

Wed, 05/15/2013 - 10:30 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

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.

Wed, 05/15/2013 - 10:50 | Link to Comment Tyler Durden
Tyler Durden's picture

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.

Wed, 05/15/2013 - 11:21 | Link to Comment Sudden Debt
Sudden Debt's picture

never the less, gramaar sould be taken sirious :)

Wed, 05/15/2013 - 12:06 | Link to Comment francis_sawyer
francis_sawyer's picture

once you go 'POLICE STATE' ~ you never go back...

Wed, 05/15/2013 - 14:37 | Link to Comment Jugdish
Jugdish's picture

I'm into black guys. I like how they smell.

Wed, 05/15/2013 - 22:50 | Link to Comment StychoKiller
StychoKiller's picture

Ah yes, the heady aroma of leather belts, kevlar armor and gunpowder...

Thu, 05/16/2013 - 01:37 | Link to Comment Bernankenstein
Bernankenstein's picture

Once I lost tons of gold on an unchartered boat. But I made up for it by printing a trillion dollars.

Wed, 05/15/2013 - 13:02 | Link to Comment tsx500
tsx500's picture

It's the equivalent of being .....     there, I corrected it for ya !

Wed, 05/15/2013 - 09:55 | Link to Comment gjp
gjp's picture

Just luck at the bubble stocks go (LNKD, and Elon Musk specials TSLA and SCTY today).  It sure feels like forever to me.

Wed, 05/15/2013 - 10:34 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

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.

Wed, 05/15/2013 - 09:55 | Link to Comment W T F II
W T F II's picture

"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/

Wed, 05/15/2013 - 10:16 | Link to Comment shovelhead
shovelhead's picture

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.

Wed, 05/15/2013 - 09:56 | Link to Comment SDRII
SDRII's picture

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

 

Wed, 05/15/2013 - 09:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The U.S. treasury has had floaters for quite some time, they are called "TIPS",

Wed, 05/15/2013 - 10:20 | Link to Comment NoDebt
NoDebt's picture

So has China.  They're called pigs and they float down rivers by the thousands.

Wed, 05/15/2013 - 10:31 | Link to Comment Boom_Bust_Babe
Boom_Bust_Babe's picture

** snicker **

Wed, 05/15/2013 - 10:36 | Link to Comment SDRII
SDRII's picture

floaters arent the same as principal protection. Ask Mario

Wed, 05/15/2013 - 09:58 | Link to Comment shovelhead
shovelhead's picture

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.

Wed, 05/15/2013 - 10:00 | Link to Comment yogibear
yogibear's picture

"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.

Wed, 05/15/2013 - 10:17 | Link to Comment freewolf7
freewolf7's picture

"Two Years Maximum"

Who's thinking this thing will stay up for two years?

Wed, 05/15/2013 - 18:24 | Link to Comment Tzanchan
Tzanchan's picture

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!

Wed, 05/15/2013 - 09:59 | Link to Comment jjsilver
jjsilver's picture

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/

Wed, 05/15/2013 - 10:02 | Link to Comment yogibear
yogibear's picture

The IRS is evil.

Wed, 05/15/2013 - 10:07 | Link to Comment NoDebt
NoDebt's picture

No, it's unconstitutional.  The people who run it are evil (and corrupt).

Wed, 05/15/2013 - 11:28 | Link to Comment monad
monad's picture

Irwin Schiff is doing God's work   http://www.youtube.com/watch?v=kZX1bvj_z0E

Wed, 05/15/2013 - 10:06 | Link to Comment insanelysane
insanelysane's picture

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.

Wed, 05/15/2013 - 10:07 | Link to Comment jjsilver
jjsilver's picture

What is Income? It certainly is not exchanging your labor for compensation. Even the supreme court has ruled on that issue numerous times

Wed, 05/15/2013 - 11:18 | Link to Comment chdwlch1
chdwlch1's picture

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.

Wed, 05/15/2013 - 10:18 | Link to Comment IridiumRebel
IridiumRebel's picture

i think the Irish would be ok with that new DUI law.

Wed, 05/15/2013 - 10:35 | Link to Comment youngman
youngman's picture

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...

Wed, 05/15/2013 - 10:04 | Link to Comment Stuart
Stuart's picture

"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.

Wed, 05/15/2013 - 10:04 | Link to Comment GVB
GVB's picture

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!"

Wed, 05/15/2013 - 10:06 | Link to Comment jjsilver
jjsilver's picture

Wed, 05/15/2013 - 10:08 | Link to Comment W T F II
W T F II's picture

Awesome comment..!! Best of the day...!!

Wed, 05/15/2013 - 10:26 | Link to Comment rosiescenario
rosiescenario's picture

First honest insight seen here.

Wed, 05/15/2013 - 10:12 | Link to Comment IridiumRebel
IridiumRebel's picture

i believe that you summed this up nicely. Kudos.

Wed, 05/15/2013 - 10:36 | Link to Comment e-recep
e-recep's picture

a bit too concise methinks.

Wed, 05/15/2013 - 10:10 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

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)

Wed, 05/15/2013 - 10:12 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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.

Wed, 05/15/2013 - 10:14 | Link to Comment insanelysane
insanelysane's picture

Did they use drones?

Wed, 05/15/2013 - 11:29 | Link to Comment monad
monad's picture

Its as if TPTB made ZH an offer they couldn't refuse & put Al Gore on the board.

Wed, 05/15/2013 - 12:24 | Link to Comment Tyler Durden
Tyler Durden's picture

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.

Wed, 05/15/2013 - 13:14 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

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.

Thu, 05/16/2013 - 00:36 | Link to Comment RebelDevil
RebelDevil's picture

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!

Wed, 05/15/2013 - 10:11 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

Uncharted territory.... Like Yellen going down on Bernanke?

Wed, 05/15/2013 - 10:13 | Link to Comment IridiumRebel
IridiumRebel's picture

Why? I just ate eggs, bro.

Wed, 05/15/2013 - 10:30 | Link to Comment moonman
moonman's picture

I wish had the power to unread something.

 

 

Wed, 05/15/2013 - 10:13 | Link to Comment q99x2
q99x2's picture

Boots on the ground report: Getting a lot of credit card applications in the mail again.

Wed, 05/15/2013 - 10:15 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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 Cart

In 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.”

 

Wed, 05/15/2013 - 10:23 | Link to Comment robochess
robochess's picture

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.

Wed, 05/15/2013 - 10:30 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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...

Wed, 05/15/2013 - 10:27 | Link to Comment PMakoi
PMakoi's picture

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

 

Wed, 05/15/2013 - 10:29 | Link to Comment PTDBDucks
PTDBDucks's picture

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.

Wed, 05/15/2013 - 10:32 | Link to Comment IridiumRebel
IridiumRebel's picture

Now you know why me and the wife work so hard and convert to hard assets. Good post. 

Wed, 05/15/2013 - 10:35 | Link to Comment Vooter
Vooter's picture

Zyklon-B, baby. Make it a triple...

Wed, 05/15/2013 - 10:32 | Link to Comment Eagle Keeper
Eagle Keeper's picture

Time for an alternative currency. Barter is good, they can't tax it.

I'm taking my toys and I am going home.....

Wed, 05/15/2013 - 10:32 | Link to Comment rosiescenario
rosiescenario's picture

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?

Wed, 05/15/2013 - 10:36 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

Google tops $900 weeeeeeeeeeee.....

Wed, 05/15/2013 - 10:39 | Link to Comment W T F II
W T F II's picture

AAPL and GLD...!!

Wed, 05/15/2013 - 10:43 | Link to Comment shovelhead
shovelhead's picture

Nice.

Let us know when the app for boycotting Soros comes out.

Wed, 05/15/2013 - 10:48 | Link to Comment Tombstone
Tombstone's picture

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.

Wed, 05/15/2013 - 11:13 | Link to Comment Gamma735
Gamma735's picture

Grammar Nazis are just mental midgets trying to show everyone how smart they are.  I know I am more smarter then Grammar NAZIs.

Wed, 05/15/2013 - 14:01 | Link to Comment madcows
madcows's picture

than, smarter than.  comparison, not time

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