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This Is An Extraordinary Time

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

It's as if we have two economies: the simulacrum one of stocks rising dramatically in a few months, and the real one of household earnings (down) and hours worked (down).

It is difficult to justify the feeling that we are living in an extraordinary moment in time, for the fundamental reason that it's impossible to accurately assess the present in a historical context.
 
Extraordinary moments are most easily marked by dramatic events such as declarations of war or election results; lacking such a visible demarcation, what sets this month of 2013 apart from any other month since the Lehman Brothers' collapse in 2008?
 
It seems to me that the ordinariness of June 2013 is masking its true nature as a turning point. Humans soon habituate to whatever conditions they inhabit, and this adaptive trait robs us of the ability to discern just how extraordinary the situation has become.
 
In my 59-year lifetime, the dramatic, this-is-history-happening moments are obvious: the Kennedy assassination, 9/11, and so on. Other tidal changes developed over a period of months or years: Watergate, which ballooned from a minor break-in to a constitutional crisis, is a good example. So is the financial meltdown of 2008, which actually began back in 2001 when the Federal Reserve chose a policy of super-low interest rates and super-abundant liquidity to lessen the post-dot-com recession.
 
I have an unavoidable sense that May-June 2013 is the high water mark of the political/financial response to the global financial meltdown of 2008. Nothing systemic has changed in the five years; the status quo financial and political systems have made cosmetic reforms, but the power structures have not changed at all.
 
The status quo has simply ramped up its traditional policies: since lowering interest rates didn't spark a strong recovery, then lower rates to zero, and so on: more money creation, more credit creation, more bond purchases, more subsidies for housing, more transfers of private debt to the public ledger--more of what has failed spectacularly.
 
That's what marks June 2013 as extraordinary: the Powers That Be have gone all-in. If their policies fail to ignite a self-sustaining recovery in the real economy, there are no policy options left.
 
Those who don't follow finance might not have noticed the extraordinary nature of recent financial events: Japan's stock market rose by 75% since December before reversing sharply, the U.S. S&P 500 climbed 24% in 2013, gold crashed by over $200 in a matter of hours, and the Japanese yen has lost a quarter of its value (in U.S. dollars) in a matter of months.
 
None of this makes sense in terms of the real economy: U.S. corporations didn't suddenly become 25% more profitable; Japan's economy did not expand by 75% in five months, and none of the fundamentals in the value of gold suddenly changed overnight.
 
These rapid, gargantuan fluctuations are disconnected from the real economy. This in itself is extraordinary. The financial press explains these bubble-like advances and collapses in terms that only make sense to financiers: the yen-dollar pair, the yen carry trade, etc.
 
That complex, abstract financier policies and trading strategies now dominate stocks, bonds and precious metals is also extraordinary.
 
I have endeavored to understand the fundamentals behind these wild fluctuations proposed by the media, and have concluded none of it makes any sense in conventional economic terms. To mention just one example: gold has traditionally been viewed as a hedge against inflation. Gold's collapse is being attributed to lower expectations of inflation. OK, so there's no inflation, ergo, the global economy is in slow-growth/no-growth mode, hence no inflation. Then what is powering global stocks higher? We're told "an improving global economy" is the driving force, but the data on this supposed recovery is mixed at best.
 
Some observers claim gold dropped because the yen dropped and the U.S. dollar strengthened, but a glance at the 10-year chart of gold and the dollar quickly disproves any correlation: gold rose when the dollar dropped and when it rose.
 
This is another extraordinary thing about the present: none of these moves make any sense. Pundits and analysts are seeking explanations after the fact, postulating correlations as causes with little historical backing. It's as if the financial media is incapable of confessing none of this makes sense, and instead the media piles one complex explanation on top of another to justify what is clearly an extraordinary disconnect between the real economy and asset valuations.
 
Bottom line: even if the global economy is improving (and there is ample evidence that data is being juiced or manipulated), it isn't improving enough to justify stocks rising by 25% to 75% in a matter of months.
 
Real estate is also back in bubble territory, in those markets with plentiful capital and limited inventory: we're back to bidding wars and dozens of people competing for the right to buy an ordinary home.
 
The bond prices of fatally insolvent European governments have fallen, as if these economies have suddenly been restored to health and fast growth by European Central Bank (ECB) intervention. European stock markets are roaring higher as well. Neither makes any sense in terms of traditional risk-pricing, price-earnings ratios and so on.
 
We are living in an extraordinary global financial experiment, in which financier tricks (zero interest rates and massive injections of credit and liquidity) have been pushed to their red-line limit in the hopes that these extraordinary measures will finally, after five long years, trigger a self-sustaining expansion of the real economy.
 
Those in charge of the experiment are constantly reassuring us it has already succeeded. I think the data shows the experiment is in the final blow-off stage in which the beaker full of toxic ingredients is bubbling with dangerous vigor.
 
There is one last extraordinary feature of this time: the data "proving" the experiment is successful is self-referential: drop interest rates to zero and subsidize housing, and voila, you get a surge in building permits. Take one full-time job and turn it into 1.5 part-time jobs, and voila, the unemployment rate declines and the number of jobs increases.
 
Then take these metrics (higher permits and jobs), weigh them heavily in your measure of leading indicators, and then declare the leading indicators "prove" the recovery is self-sustaining.
 
All this leads to a question: what would happen to the economy if all the financier tricks were stopped, and the price of risk, credit, assets, etc. were discovered by the marketplace?
 
It's as if we have two economies: the simulacrum one of stocks rising 75% in a few months, and the real one of household earnings (down) and hours worked (down). Eventually these two economies will have to merge into one. I sense 2013 will be the critical year when the schizophrenia is resolved one way or the other.
 
This essay is excerpted from Musings Report 20. The Musings Reports are basically a glimpse into my notebook, the unfiltered swamp where I organize future themes, sort through the dozens of stories and links submitted by readers, refine my own research and start connecting dots which appear later in the blog or in my books.
 
The Musings Report includes an essay and three other sections: Market Musings, on the financial markets and trading, The Best Thing That Happened This Week and From Left Field.
 

 

Things are falling apart--that is obvious. But why are they falling apart? The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand. We will cover the five core reasons why things are falling apart:

go to print edition1. Debt and financialization
2. Crony capitalism and the elimination of accountability
3. Diminishing returns
4. Centralization
5. Technological, financial and demographic changes in our economy


Complex systems weakened by diminishing returns collapse under their own weight and are replaced by systems that are simpler, faster and affordable. If we cling to the old ways, our system will disintegrate. If we want sustainable prosperity rather than collapse, we must embrace a new model that is Decentralized, Adaptive, Transparent and Accountable (DATA).

We are not powerless. Not accepting responsibility and being powerless are two sides of the same coin: once we accept responsibility, we become powerful.

Kindle edition: $9.95       print edition: $24 on Amazon.com
To receive a 20% discount on the print edition: $19.20 (retail $24), follow the link, open a Createspace account and enter discount code SJRGPLAB. (This is the only way I can offer a discount.)

 

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Sat, 06/22/2013 - 19:46 | 3682704 LetThemEatRand
LetThemEatRand's picture

All this leads to a question: what would happen to the economy if all the financier tricks were stopped, and the price of risk, credit, assets, etc. were discovered by the marketplace?

Insane laugh inserted here.

Sat, 06/22/2013 - 19:51 | 3682715 nmewn
nmewn's picture

Air pocket.

Sat, 06/22/2013 - 20:07 | 3682739 SafelyGraze
SafelyGraze's picture

<-- to cash check at bank, had to show driver licence

<-- have never been required to do so

Sat, 06/22/2013 - 20:13 | 3682750 DaddyO
DaddyO's picture

Went to the local Sheriff's Office Compound yesterday and had to show ID, get photo'd and place paper ID badge on my chest to enter the compound...

Can you say "POLICE STATE" kids?

DaddyO

Sat, 06/22/2013 - 20:24 | 3682762 Skateboarder
Skateboarder's picture

Fuck identification.

Sat, 06/22/2013 - 20:26 | 3682765 LetThemEatRand
LetThemEatRand's picture

Papers, citizen.

Sat, 06/22/2013 - 20:31 | 3682774 Skateboarder
Skateboarder's picture

Papers? Where we're going, we don't need... papers.

Sat, 06/22/2013 - 22:19 | 3682927 BigJim
BigJim's picture

Don't worry sir, if you don't like papers we'll just implant a nice little RFID here, in the back of your neck.

Right next to the ol' spinal cord so if you try to remove it you risk severing it.

Sat, 06/22/2013 - 22:59 | 3682975 Ocean22
Ocean22's picture

I can see this actually happening. Get rid of cash and look at how much more taxes you get !!

Sun, 06/23/2013 - 04:56 | 3683192 Manthong
Manthong's picture

CHS.. I think you might be a little off on the timing and critical event..

The Clinton/Summers/Greenspan/Gramm CFMA 2000 set the stage for the debacle.

The bucket shop was made legal in the form of unregulated, naked insurance bets .. the rest is a quadrillion dollars worth of history.

And now, default is nothing more than seven worthless letters of the alphabet.

http://www.ritholtz.com/blog/2012/03/credit-default-swaps-cds-are-insurance-products-not-tradeable-assets/

Sun, 06/23/2013 - 07:59 | 3683379 NoDebt
NoDebt's picture

I was in a Wells Fargo the other day where my mother's Estate account is.  Next to the pen at the teller windown was a little black box.  I asked what it was.  Teller flipped it open and I immediately recoginzed it as a fingerprint blotter (don't ask how I know what that is- story for another day).  She proceeded to tell me that anyone cashing a check at a Wells Fargo bank who doesn't have an account there now gets FINGERPRINTED.  She told me not to worry because the ink was made out of vegetable oil and wipes right off after they take your print.  Nice.

Sun, 06/23/2013 - 08:38 | 3683449 jbvtme
jbvtme's picture

i tried to wire $ recently and the bank wanted to set up a "profile" and require that i explain what was the nature of the wire.

Sun, 06/23/2013 - 11:08 | 3683790 Abi Normal
Abi Normal's picture

Indeed I had to cash a check at Wells Fargo and they wanted me to do th thumb print thing.  I respectfully declined.

Sun, 06/23/2013 - 12:11 | 3683930 qqqqtrader
qqqqtrader's picture

I've been married for more than 10 years using the same healthcare provider for my family. Last year I had to prove I was married to my wife and prove my daughter was my daughter. Filled out 3 pages of required information (with the previous years tax return cover page) and a copy of the marriage cert and a copy of the "Birth Certificate" for my daughter. Received a letter in a few weeks saying the birth certificate wasn't a valid document, they needed a "certificate of birth". So $39.95 and 3 weeks later I received the cert and sent it in. All this crap just to keep my health insurance going... wtf?

Sun, 06/23/2013 - 12:29 | 3683971 jbvtme
jbvtme's picture

obviously barry isn't shopping with that health care provider

Sat, 06/22/2013 - 22:49 | 3682961 TheFourthStooge-ing
TheFourthStooge-ing's picture

Papers? Don't need 'em, I brought a bong.

Sun, 06/23/2013 - 06:34 | 3683265 Bearwagon
Bearwagon's picture

Excellent! Come on over here, I've brought all the rest, and I'll shirley prefer a hit from yours to this endless non-shit from the Oblamabong ...   ;-)

Sun, 06/23/2013 - 08:36 | 3683446 jbvtme
jbvtme's picture

please don't call me shirley

Sun, 06/23/2013 - 01:45 | 3683115 trembo slice
trembo slice's picture

...except rolling papers.

Sun, 06/23/2013 - 00:41 | 3683066 LongOfTooth
LongOfTooth's picture

Badges? We don't need no stinking badges!

https://www.youtube.com/watch?v=nsdZKCh6RsU 

 

Sat, 06/22/2013 - 20:34 | 3682778 nmewn
nmewn's picture

Went to the local DMV last year carrying papers & documents I rarely gather together in order to prove I am who I am...lost my SS card and number in the process to who knows who.

Now someone is the benficiary of that number...but so am I, in a sense...cuz it ain't me.

I may (or may not, no one knows but me) have three more numbers, welcome to the matrix ;-)

Sat, 06/22/2013 - 23:58 | 3683032 thisandthat
thisandthat's picture

If it's a nominal check, you have all interest it's only cashed to the right person; if it's to the bearer, there's no reason for any of that, but here's a story:

Last time I bought gold, ups guy just says recipient's name and delivers to the person answering the door without verifying their id/signature. Luckily it was a relative, but at this point could be anyone, since by now they'd even know the name and wouldn't be verified - heck, ups guy could even fake delivery, if he wanted!

So which would you rather have - that or require a valid id and check if it matches, as with the post office? When talking about thousands/tens of thousands in merchandise (or anything important), you probably rather be safe by validating your id, than risk being sorrow testing the validity of non-contractual assurances...

Sat, 06/22/2013 - 20:07 | 3682742 SafelyGraze
SafelyGraze's picture

<-- had to show driver license to receptionist at public school

<-- never had to do so

Sat, 06/22/2013 - 20:07 | 3682744 SafelyGraze
SafelyGraze's picture

<-- had to show driver license at doctor's office

<-- never had to do so

Sat, 06/22/2013 - 20:33 | 3682760 BoNeSxxx
BoNeSxxx's picture

True story:  Last time I went to see my doc, the receptionist told me she needed to scan my driver's license as part of my permanent record.  She said it was mandatory under HIPPA/FLIPPA/SMIPPA - some bullshit acronym.

Anyway, I replied to her thusly, "I've been seeing Dr. ----- for over 10 years and he's had his fingers up my ass at least as many times.  If he doesn't recognize me by now, how the fuck is a driver's license going to help?"

I walked in unmolested and as far as I know she is still sitting in that chair as speechless as she was when I left her...

Sat, 06/22/2013 - 21:16 | 3682832 Oldrepublic
Oldrepublic's picture

speaking of IDs, I was recently driving in Mexico, no hotel/motel asked for any ID!

Sat, 06/22/2013 - 22:20 | 3682928 BigJim
BigJim's picture

It's almost as if they don't care about terrism!

Sun, 06/23/2013 - 07:49 | 3683363 francis_sawyer
francis_sawyer's picture

I got you all beat... I buy yards of shredded mulch from the landfill [way cheaper]... But the county just took over the operation... So now you have to fill out forms [in triplicate], show ID & get your truck weighed...

~~~

For a yard of fucking shredded mulch...

Sun, 06/23/2013 - 11:11 | 3683796 Abi Normal
Abi Normal's picture

I got you beat, in my county, the landfill GIVES AWAY mulch FREE and no paperwork!

Sat, 06/22/2013 - 22:37 | 3682945 azzhatter
azzhatter's picture

Why are there advertisements for cocksucker Obama on this site?

Sat, 06/22/2013 - 22:53 | 3682968 TheFourthStooge-ing
TheFourthStooge-ing's picture

Because Google AdSense, or whatever the fuck it's called, knows about the contribution you made to Debt Bro's presidential campaign.

Sat, 06/22/2013 - 19:49 | 3682709 lolmao500
lolmao500's picture

Questioning anything is treason citizen!

Sat, 06/22/2013 - 19:52 | 3682716 LetThemEatRand
LetThemEatRand's picture

Click here and learn more!

Sat, 06/22/2013 - 20:08 | 3682745 Cangaroo.TNT
Cangaroo.TNT's picture

+1 for the Starship Troopers reference.

Sat, 06/22/2013 - 19:56 | 3682718 criticalreason
criticalreason's picture

might just b a liquidity squeeze made in china...rippling round the world...doubt we are in the final blow off top just yet.

 

bit pointless writing end of the world books if u predict the end is nigh IMO.

Sat, 06/22/2013 - 20:01 | 3682731 Spastica Rex
Spastica Rex's picture

Impossible to say.

To me, feels like a metaphorical thunderstorm is brewing.

I'm almost always wrong, however.

Sat, 06/22/2013 - 20:27 | 3682766 Skateboarder
Skateboarder's picture

Yes, Rex, and the topic is "question everything" vs. "don't question anything, or else."

Sat, 06/22/2013 - 21:20 | 3682838 Spastica Rex
Spastica Rex's picture

Fuck - we are in a bad place culturally.

Sun, 06/23/2013 - 06:09 | 3683244 new game
new game's picture

but, if you get yourself in a position to move freely, the cultural thingy can change by GTFO.

beam me to the 40 year ago lifestyle. When people were real people - respect of the fellow man and woman kind.

2nd world of real living - say small town usa...

aint happenin in da big city sludge pots of desparation.

too many low-life trailer trash blame society handout mentality fucks...

my theory is simple:freedom ultimatly self corrupts due to human nature.

and the end result is domination by a tyranical few...

time to seriously consider a new country.

but where?

hmmmm

 

Sun, 06/23/2013 - 01:58 | 3683124 holgerdanske
holgerdanske's picture

Ha ha, I know the feeling! The trouble is the "almost". If you were just wrong at all times, it would be very useful. The "almost" is the fly in the soup.!

Sat, 06/22/2013 - 20:51 | 3682784 chubbyjjfong
chubbyjjfong's picture

The volatility and volume is accelarating. Ominous overload. I just can't see this thing getting stabilized. If they taper it blows, if they accelarate printing its catastrophic. Not many options left. I can now only expect the unexpected. I agree, historical year. Historians will look back at 2013 with WTF??!

Sun, 06/23/2013 - 00:08 | 3683042 Real Estate Geek
Real Estate Geek's picture

Dynamic instability; just like what caused the destruction of the Tacoma Narrows bridge:

https://www.youtube.com/watch?v=nFzu6CNtqec

 

Sat, 06/22/2013 - 20:11 | 3682747 rsnoble
rsnoble's picture

What would happen? Disaster obviously.  And a lot of lost seats in DC.  Oh lord!

Sat, 06/22/2013 - 20:34 | 3682781 worbsid
worbsid's picture

The uneasy feeling that we are on the cusp of something unknown is wide reaching in the general public too.  The other old geezers I have coffee with in the morning wouldn't know ZH or financials from zip.  They have this uneasy feeling too.  Our middle age, middle income kids feel it. The neighbors I know feel it. 

BTW:  I wonder why the DOW volumn on Friday was three times the 90 day average.  http://money.cnn.com/data/markets/dow/  IF that many people were BTFD, why didn't the dead cat bounce higher. 

We live on a fixed planet, with fixed resources.  The lies are rampant about US oil production, North Dakota is good but is like a pimple on a fat gal's butt.

I guess we will see what happens and if you don't have your caca assembled when it hits the fan, TS for you.     

Sat, 06/22/2013 - 20:49 | 3682803 chubbyjjfong
chubbyjjfong's picture

+1. I have to agree with the work and friend chatter. It started when mortgage rates started to go up. People took notice, it seemed to be the only thing that "woke" them up. I female collegue even asked me about bonds yesterday. I seriously nearly spat out my coffee. Another asked me why it was that the gold price had plummetted yet he couldn't buy gold for that price (he was asked for a massive premium). I thought I was just the lunatic fringe guy.

A collegue of mine got cold called by an apartment investment shark and, being perhaps the most gullible (and nicest) guys on the planet he signed up.  Now he has 500k loan with a 50k base salary, 3 kids, and things don't look good. When interest rates started to climb the look on his face was sickening, he knows he just got scammed. I can tell he is in panic mode now.

Perhaps the masses are slowly coming around to the house of cards.

Sat, 06/22/2013 - 21:37 | 3682864 flacon
flacon's picture

The volume was high everywhere because JUNE 22 is Option Expiry - and this is a (significant) mid-year expiry.

Sat, 06/22/2013 - 22:54 | 3682971 Ocean22
Ocean22's picture

Wtf is a caca. I wish you guys would explain more in your post so dummies could understand. Great stuff but I don't know wtf your saying sometimes.

Sat, 06/22/2013 - 23:11 | 3682986 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ocean22 said:

Wtf is a caca. I wish you guys would explain more in your post so dummies could understand.

http://www.urbandictionary.com/define.php?term=caca

Just tryin' to help.

Sat, 06/22/2013 - 23:34 | 3683001 worbsid
worbsid's picture

'assemble your caca' = 'get your shit together'

When in mixed company and you want to say WTF, instead say "Where's the fruit?"  The only one who will know what that means is your teenage grandson. DAMHIKT  :-)  There's another one for you Ocean. 

Sun, 06/23/2013 - 08:43 | 3683455 BurningBetty
BurningBetty's picture

the volume was caused by option expirations. The expirations were on Saturday, but Friday was the last trading day for the week. Just ignore the volume spike.

Sat, 06/22/2013 - 20:40 | 3682792 MedicalQuack
MedicalQuack's picture

Agree, "you can do anything with software" quote from the Alchemists of Wall Street video from Mike Osinski who wrote the software that all the banks used (and modified the models) for their subprime loans.  How it plays out in the real world versus the model can be two different things.  Banks and for that matter, insurance companies are really just software companies creating illusions with models that are flawed or some that just lie for profit. 

Those are the words of a banker who chooses to remain annonymous and I just agree with him on many levels.

http://ducknetweb.blogspot.com/2013/04/banks-are-actually-just-software....

We have way too many flipping algorithms for profit and especially in the data selling areas and manufacturing gets shorted here with technologies as it's easy money.  One day the government will have to wake up and smell the stench created by digital illiterates making laws.  Its called modeling for inequality.  When the Occupy movement first started I said the same thing in my series on the Attack of the Killer Algorithms that most of the folks didn't understand or could not comprehend what was happening, but you know what, that was enough and now it's time to drill down on it and fight back. 

http://ducknetweb.blogspot.com/2013/04/modeling-for-inequality-with.html

State governments are getting wrose too and it seems the digital illits out there would rather talk about abortions than work on something important and better yet take time to learn about the "real" tech world and how it functions with private industry models, as that's the root of all of this and it just keeps rolling and the government is behind the 8 ball all the time.  HHS and DOJ with some of tier public statements just make you cringe as they guess and say silly things that make the news and don't even understand what technologies they have in their own departments.  MSNBC sis a good job on exposing the digital illits that focus on abortions and women's health in a real chickent fashion. 

They forcus on such items as their knowledge in making real laws as relates to IT technologies is just not there, so they make women's health their "default" topic so they can get some attention and feel like they have power to control something.  This week it was Texts illits who did it with calling a special session during the NBA playoffs to address abortions and take votes on bills.  If that is not a perfect example of no cofidence, chiicken antics and behaivor of adults like children, I don't know what is.  Video cuts are priceless in showing this and how the illits cower when it comes time to do some serious lawmaking and they run from learning.  I have never seen anything like it and the time and money wasted is a secondary issue here too. 

Like I said I see all of these antics and child like behaviors as a way of hiding their lack of digital literacy, no desire to want to educate themselves, and just one more OMG distraction that puts both the states and federal government further behind the 8 ball.  Whether or not you like MSNBC or not, just watch the video and the childrish behaviors of adults that someone elected...scary.  Banks and companies though love this as it keeps the reality of making them accountable for their lying models that falsify risk.  Too bad the media doesn't do a better job picking up on this but then again they have quotas to meet for hits reading what they put out so they are drawn to it as well to keep their jobs I might guess. 

http://ducknetweb.blogspot.com/2013/06/war-on-women-in-us-continues-in-t...

 

Sat, 06/22/2013 - 21:01 | 3682814 Robot Traders Mom
Robot Traders Mom's picture

I really am starting to hate the phrase "financial experiment" when describing Fed policies. 

 

Nothing in our economic environment implies an accident or experimentation. This was, is, and will be entirely orchestrated and planned...

Sat, 06/22/2013 - 21:09 | 3682819 Skateboarder
Skateboarder's picture

Central planners playing real-life game of sims.

Sat, 06/22/2013 - 21:26 | 3682845 TrulyBelieving
TrulyBelieving's picture

It's kinda like realizing the reason you're losing at the crap table is because the dice are loaded!

Sat, 06/22/2013 - 21:31 | 3682854 otto skorzeny
otto skorzeny's picture

the only way to win is not to play.

Sun, 06/23/2013 - 04:08 | 3683177 Kirk2NCC1701
Kirk2NCC1701's picture

Agreed.  One way is to start one's own, new game.  The way Jesus started a new game on the Money Changers, the way the early Christian started a new game on the rotting Roman Empire.  Or the way America's Founding Fathers started a new game.  Some these new games -- good games -- grow organically to take root.

I hope that the Libertarian movement is part of a new, good game, to grow from the bottom up (decentralized).

Sun, 06/23/2013 - 06:05 | 3683241 Poor Grogman
Poor Grogman's picture

A seed can sit in the ground a long time doing nothing.

That is, till it rains.

Bad weather is what is needed and, what is coming.

Sat, 06/22/2013 - 21:32 | 3682856 WTFUD
WTFUD's picture

looonnnngggg pepper spray ( 3 months )

Sat, 06/22/2013 - 21:59 | 3682898 22winmag
22winmag's picture

Yes we are in uncharted waters... never in the brief history of facist police states have the citizens been armed so heavily as in 2013 America.

Sat, 06/22/2013 - 22:19 | 3682925 Divine Wind
Divine Wind's picture

 

 

This is a profound statement.

Normally when a populace gets screwed over by TPTB, they are without arms and have ZERO recourse by other means.

 

Sat, 06/22/2013 - 23:36 | 3683006 Poor Grogman
Poor Grogman's picture

Let's hope this time IS different

Sat, 06/22/2013 - 23:45 | 3683018 worbsid
worbsid's picture

You might look up the original meaning of MOLON LABE:

http://en.wikipedia.org/wiki/Molon_labe

Sat, 06/22/2013 - 22:06 | 3682910 eddiebe
eddiebe's picture

It all makes perfect sense once you figure out that power hungry psychopaths are running everything. Those are the fundamentals. 

Sat, 06/22/2013 - 22:43 | 3682954 NuckingFuts
NuckingFuts's picture

with the exception safelygrazes' quizes there are only two down vote on this thread as of this post time.  I find that telling in the sense that this is something we all agree on besides: Fuck Bernake!  and Bitches! 

See you all on the other side, bitches.........fuck Bernake!

Sat, 06/22/2013 - 23:47 | 3683021 worbsid
worbsid's picture

Not many ZH Trolls on the week end.

Sun, 06/23/2013 - 02:41 | 3683145 Spanky
Spanky's picture

Overtime is tight, with the sequester and all.

Sun, 06/23/2013 - 06:26 | 3683261 Zwelgje
Zwelgje's picture

sequestration.

Sat, 06/22/2013 - 23:14 | 3682989 August
August's picture

All part of the new federal "Know Your Muppet" requirements.

Sat, 06/22/2013 - 23:21 | 3682997 IslandMan
IslandMan's picture

Charles: "bond prices of fatally insolvent European governments have fallen". 

I think you mean the YIELDS have fallen as the bond PRICES have risen dramatically.

Sun, 06/23/2013 - 00:34 | 3683058 Abi Normal
Abi Normal's picture

the time is fast approaching to man up!

Sun, 06/23/2013 - 01:04 | 3683072 sitenine
sitenine's picture

"I sense 2013 will be the critical year when the schizophrenia is resolved one way or the other."

Well, since full employment is NOT happening in 2013, it's easy to surmise which side of the fence we're on here. Peak World Ponzi - what a sight to behold. Never have so few enjoyed the riches of so many. And to think it was all done with paper promises, it truly challenges the mind to comprehend what has actually happened. Trillions upon trillions of derivative paper, supposedly representing 'real assets', are used as collateral to borrow even more trillions. These derivatives are worth more than the entire net worth of the planet earth. No shit. The funniest thing about the whole charade is that it all comes crashing calamitously down the second real growth stops, which it must, as a consequence of the exponential function. Thank you asshole bankers, crooked accountants, and shithead lawyers.

Sun, 06/23/2013 - 01:20 | 3683101 ebworthen
ebworthen's picture

Charles - you are hitting on all cylinders.

What household could engineer a "self-sustaining recovery" using debt while breaking the law?

Not one, and neither can a nation nor interlinked economies.

Sun, 06/23/2013 - 01:54 | 3683120 holgerdanske
holgerdanske's picture

If the idiots can print at will, there is nothing stopping them from buying the whole world, until people loose faith in their paper.
Most people have yet to fully understand this fact.
When they do, only gold will be acceptable as payment, apart from barter

Sun, 06/23/2013 - 17:24 | 3684697 Mandel Bot
Mandel Bot's picture

Unfortunately, by that time the bastards will own the whole world and they probably won't want to sell it back. Even for gold.

Sun, 06/23/2013 - 02:15 | 3683131 JOYFUL
JOYFUL's picture

While I can appreciate the 'musings' of CHS as thought experiments...

I can see no reason to accept his acknowledged failure

"it's impossible to accurately assess the present in a historical context"

as our own. In fact, it's one of the most accessible options left to us... to gauge the circumstances of the present moment by accurately reviewing the historical trajectory of events which brought us here. All that's required is a willingess to dump the accrued indoctrinations of 'general education' in favor of the type of inquiring mind and hunger for knowledge which used to be the essence of 'science'...

before science morphed into an amalgam of pre-conceptions confirmed via subjective reasonings & the 'applied' cabbalistic black majic which John Dee infected the English-speaking world with after his tutelage by the rabbinical sages of Prague.

A straight line from that point in time -Elizabethan England - through to the condemnation as a 'heretic to Judaism' of Baruch Spinoza by the same Dutch converso community who successfully inveigled Cromwell into allowing the return of the pharisees to ketseh ha-aretz(1656)... 

guides us with great accuracy through the upheavals of the C19th & C19th to the era of phony wars and the ascendance of talmudist 'communist\capitalist theologies throughout the world.

Equipped with that timeline... there is no great difficulty in sorting through the dross and distractions of the moment to understand where we be. Marxist theory has always had a difficult time trying to fit Asian societies into it's class analysis... finally some of those theorists came up with the notion of "state as a class."

Tchechkov asserted that the term "class" is not applicable at all to the ruling social group in precolonial Vietnam. There was instead a hierarchy of "functionaries," with the emperor as "first among functionaries." This elite was constantly replenished through a system of examinations and tests. For this group of elite "scholar functionaries," ownership of the means of production did not determine their place in the hierarchy, but on the contrary, their rank in the hierarchy determined their economic position. The ruling "state as a class" exploited the peasant members of the community not by owning the means of production but by virtue of its functional role in governing society and the economy.(Shafarevich -the Socialist Phenomena)

The above quotation clearly explains the position of Obama and the progressivist caste in the fallen societies of the Western lands. Gleaning that is key to being released from the wilderness of mirrors we live within. To understand the project of hegemonist cabbalism, and the ruination of the west, one must study how they think... through reading what they write. Then the 'impossible' becomes possible.

As in... fighting back. Now that... would be extraordinary!

Sun, 06/23/2013 - 05:22 | 3683202 NuYawkFrankie
NuYawkFrankie's picture

Hoooo...ME Run!

Outta the park!

Sun, 06/23/2013 - 09:18 | 3683522 redguard
redguard's picture

WOW! That's like zerohedge from three years ago. Insightful. Thanks bro.

Sun, 06/23/2013 - 10:17 | 3683665 JOYFUL
JOYFUL's picture

And reciprocal shoutout back to you sir... as a relative newbie here(just past the two year mark) and sincerely concerned member of the assembly watching 'the Hedge' rapidly losing it's edge... as authentic voice of the resistance...

if anything which I write here reminds of halycon days of the storied past when this was the up n comin place in space....

then I have succeeded beyond my wildest imaginings, in becoming a contributor... to the greater good of the peeple amongst whom I grew up and fondly remember...

as being my own.

Sun, 06/23/2013 - 10:53 | 3683756 redguard
redguard's picture

I think getting rid of the captcha was when zhedge made it's turn for the worse.imo.
Like the avatar by the way.

Sun, 06/23/2013 - 11:11 | 3683798 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

@Joyfull.. I  agree with your opinion entirely but I thought CHS was making the point that we have finally reached the natural inflection point that holding an incongruent set of values leads.

I guess it's sort of looking at the situation from a macro vs. the situational vantage you are describing- as far as the hopelessness of our current situation I agree with you entirely- it's they that are locked into a matrix of inflexible goals- our limitations are mostly self imposed.

I look forward to your comments after all I am here to learn.

Sun, 06/23/2013 - 12:22 | 3683953 JOYFUL
JOYFUL's picture

We're all here to learn I suspect... and learning seems directly tied into our willingness to converse...

"our limitations are mostly self imposed"... very true. Today, out of the blue, an idea struck me that had never formed in my mind before...

we could, at any time of our choosing, simply roll back the last 400 years of infamy... and start fresh; free of talmudist values, and free to re-start our progression as a civilization again. All it would take would be to apologize to our brother races for complicity in the sins of our corrupters... in their slaving, drug running, expansive rackets to defraud the rest of the world ...

then swear off of the same unnatural practices within our own communities... and let our natural instincts for trade and cooperation tween different peeples take their course.

Far-fetched... I will acknowledge. Far from our capacity to achieve? I wonder.... if we overcome our pride enough to admit to our past mistakes... not in the smarmy politically correct manner of the corrupters, but simply from a humility of spirit that was our forbears and betters greatest weapon against corruption from within... or without...

would we indeed overcome those self-imposed limitations?

Sun, 06/23/2013 - 15:50 | 3684422 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

Good question, if you could eliminate the human factor I suppose that would be possible but man's history has been pretty much a series of what we see now compounded with horrendous loss of life.

I will have to be convinced that humanity is capable of self governing or is even willing to reject at great peril a return to what seems to be a normal affinity the race has for royalty/subject relations.

.."What the common man longs for in this world, before and above all his other longings, is the simplest and most ignominious sort of peace: the peace of a trusty in a well-managed penitentiary. He is willing to sacrifice everything else to it. He puts it above his dignity and he puts it above his pride. Above all, he puts it above his liberty."

What we have witnessed was a two hundred year reprieve from the natural state of human condition, whether we will watch the dog return to his vomit or by some miracle avoid the unthinkable is still a matter of conjecture.

Mencken was a pretty shrewd judge of the human condition, it appears to me he was not convinced we were capable of anything other than what we see today..

I hope that viewpoint is wrong but unless we are able to reverse the ignoble inspiration for most of man's history it's hard to imagine us ending up much differently than we are right now.

The Ming dynasty suffered from much the same destructive forces with the corruption of money and the inability to govern leading to it's replacement- there seems to be a common thread to the rise and fall of sovereign states.

I really don't know if mankind is capable of what you suggest and I sure don't know if we will be able to resolve anything through less than violent means- however I believe that at this point a political option is no longer on the table.

thanks for the dialogue.

Sun, 06/23/2013 - 17:19 | 3684676 Mandel Bot
Mandel Bot's picture

Most people mistakenly believe that historic events only happen far away and at times other than the present.

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