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Marc Faber Blasts "We Are The Bubble... There Is No Exit Strategy"

Tyler Durden's picture


"The question is not 'tapering'," Marc Faber exclaims to his hosts on CNBC's Squawk Box this morning, "the question is at what point will they increase the asset purchases to say $150 [billion] , $200 [billion], or a trillion dollars a month." QE-4-EVA is here to stay, as Faber explained "every government program that is introduced under urgency and as a temporary measure is always permanent." Simply put, "The Fed has boxed itself into a position where there is no exit strategy," and while inflation may not be present in the 'chosen' indicators, Faber blasts, there's been incredible asset inflation - "we are the bubble. We have a colossal asset bubble in the world [and] a leverage or a debt bubble." There will be massive wealth destruction, he concludes, "one day this asset inflation will lead to a deflationary collapse one way or the other. We don't know yet what will cause it."


The Fed is Boxed In....


The world is in a gigantic bubble...


Back in April 2012, Faber said the world will face "massive wealth destruction" in which "well to-do people will lose up to 50 percent of their total wealth."

In today's "Squawk" appearance, he said that could still happen but possibly from higher levels because of the "asset bubble" caused by the Fed.


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Mon, 10/21/2013 - 16:48 | 4077203 Joebloinvestor
Joebloinvestor's picture

The US has a habit of pulling a rabbit out of the hat, and I suspect that when push comes to shove, the US will issue a new type of currency backed by PM's, as they will have to.

Just as quickly, they will figure out a way to fractionalize it.

Mon, 10/21/2013 - 16:49 | 4077208 Hooter Shaker
Hooter Shaker's picture

You will not like the exchange rate.

Mon, 10/21/2013 - 17:25 | 4077299 ZerOhead
ZerOhead's picture


"We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time."

B.S. Bernanke November 2010


Mon, 10/21/2013 - 17:26 | 4077316 Chupacabra-322
Chupacabra-322's picture

What was once Criminal is now out in the open & legal. It doesn't hurt to have the masses desensitized to Criminal business practices like murder, espionage & drug trade as normal. Throw in the Criminal Politcians, Agencies & Justice System & you have a recipe for a AuthoritarianTotalitarian Fascist Police State Tyranny.

Which is exactly what we have today.

Mon, 10/21/2013 - 17:35 | 4077343 Pure Evil
Pure Evil's picture

Oh my there a song in there somewhere?

We are the bubble.....we are the debt slaves

(sung to the tune of We are the World)

Mon, 10/21/2013 - 17:47 | 4077383 eclectic syncretist
eclectic syncretist's picture

A deflationalry collapse in the percieved (meaning real) value of fiat currency and those who proffer it.

Mon, 10/21/2013 - 19:15 | 4077614 Herd Redirectio...
Herd Redirection Committee's picture

Yep, death of a currency.

Mon, 10/21/2013 - 22:11 | 4078088 TruthInSunshine
TruthInSunshine's picture

When (not if) equity markets crash, it's game over. The insiders will have already cashed out and converted their fiat gains into hard, real, truly valuable assets.

Ben Bernanke has now blown the third, and BY FAR the largest (and multi asset class) bubble since 1998.

There will future economic textbooks & studies dedicated to the complete failure that is Ben Bernanke's 'Virtuous Circle' monetary policy lunacy.

Mon, 10/21/2013 - 22:58 | 4078284 markmotive
markmotive's picture

Jim Grant thinks we're headed to a gold standard. That crazy guy.

Tue, 10/22/2013 - 02:11 | 4078558 gbresnahan
gbresnahan's picture

this is what i think as well.. we'll eventually collapse, then "sound money" will return, then the entire cycle will start anew.

(create new/sound currency, inflate it a little bit, little more, little more, etc, collapse, repeat)

Tue, 10/22/2013 - 04:05 | 4078620 Squid-puppets a...
Squid-puppets a-go-go's picture

and importantly, the degree to which they fractionalize or attempt to fractionalize the new gold backed currency will = the degree to which it fails to fully restore faith in the currency.

Remember that: when you are dealing with faith and confidence, having been thoroughly lost, you cannot use chicanery or opaquery to get it back. And this time there will be a world of observers to call them out on any bullshyt

Mon, 10/21/2013 - 23:15 | 4078326 Abi Normal
Abi Normal's picture

Pity, the avg SUCKER will be standing there with a lump of coal in his hand, then he will figure out he has nothing to lose and lose it.  This will end in a trail of tears my friends, just prepare accordingly...mentally, physically and spiritually (whatever you worship, even if it is your toaster or nothing) GET THE HELL READY, time is running short, tick tock tick tock tick tock.

May the farce be with you!

Mon, 10/21/2013 - 20:17 | 4077771 MsCreant
MsCreant's picture

We are the ones who will have to pay 
so lets start giving... 

There's a choice we're making 

We're saving bankers' hides
Its true we had better pay 
Just you and me...

Sing it!

Mon, 10/21/2013 - 21:31 | 4078003 Croesus
Croesus's picture

@ MsCreant: 

"I buy the Gold...I buy the Silver...

They're the choice for a brighter day...the precious metals..

There's a choice your making...for your financial lives..."


( I actually have the video playing on Youtube...and I remember how much I couldn't stand it, when it came out...they played it EVERYWHERE)...


Mon, 10/21/2013 - 22:25 | 4078195 Element
Element's picture

</Bob Dylan voice>

Mon, 10/21/2013 - 22:56 | 4078280 lasvegaspersona
lasvegaspersona's picture


make fun of Bob all you want...let's hear you sing Tangled Up In Blue...

Mon, 10/21/2013 - 23:03 | 4078294 Element
Element's picture

You've assumed way too much. -1

Tue, 10/22/2013 - 07:10 | 4078741 ToNYC
ToNYC's picture

"...the only thing I knew how to do was to keep on hanging on, like a bird that flew...we just started from another point of view, tangled up in blue."

Mon, 10/21/2013 - 17:39 | 4077359 ZerOhead
ZerOhead's picture

When the time comes that they stop bothering to assess fines to deter criminal activity the system will have officially "Jumped the Shark".

I'm thinking next month...

Mon, 10/21/2013 - 18:13 | 4077447 silverserfer
silverserfer's picture

or the FED loans them the money at 0% to pay the "fines." Just a show to playcate the masses 

Mon, 10/21/2013 - 18:18 | 4077466 hangemhigh77
hangemhigh77's picture

It already has. Where do you think the 13 billion JPM fine went? The banks. The banks run the government.  JPM just moved 13 bil from one side of the ledger sheet to the other.  ALL taxes go to the banks. So WHO are the banks paying their fines to?  Themselves. It's all a hoax.

Mon, 10/21/2013 - 18:33 | 4077508 Seize Mars
Seize Mars's picture

Right on, man. Go ahead and try and explain that to some mouth-breather walking down the street - blank stares ensue.

Mon, 10/21/2013 - 20:32 | 4077815 Serfs_Up
Serfs_Up's picture

LMAO "Mouth-Breather"  Lots and Lots of those around!!

Mon, 10/21/2013 - 21:18 | 4077972 disabledvet
disabledvet's picture

"Jamie Dimon is Custer and we're all the Indians....only this time the Indians lose." There is a probabilistic certainty that i'm still trying to come to grips with. Hence..."back to school for the DV." It is uniquely...American...however.

Mon, 10/21/2013 - 21:34 | 4078021 Jendrzejczyk
Jendrzejczyk's picture

Hey, my nostrils are unusually small. Okay?

Mon, 10/21/2013 - 23:33 | 4078364 Abi Normal
Abi Normal's picture

need more oxygen...

fuck 13 billion, what ever happened to the 2.3 trillion rummy lost?

Mon, 10/21/2013 - 19:36 | 4077667 Race Car Driver
Race Car Driver's picture

"We traced the call! It's coming from inside the house! Do you hear me? It's coming from inside the house!"

Tue, 10/22/2013 - 06:50 | 4078725 RabbitChow
RabbitChow's picture

The news media broke it down as $4 billion will go to the 'homeowners' and $9 billion will go to fines and fees to the gummint.  In reality though the money will all go to the gummint.  There may be some holding fund for anyone who was injured by selling the MBS can file a claim to.  I just don't see that happening though.

Mon, 10/21/2013 - 18:48 | 4077548 Keyser
Keyser's picture

I would say that we have jumped the shark some time ago. The DOJ have already suspended prosecution of certain crimes. Holder doesn't think the emmigration laws in the US are worth enforcing, so border patrol doesn't. Same situation with marijuana cases. 


Mon, 10/21/2013 - 19:29 | 4077649 booboo
booboo's picture

Uh, well as you define it the system jumped the shark in the late 1800's.

Mon, 10/21/2013 - 20:20 | 4077792 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"...system jumped the shark in the late 1800's."

More like 1913!

Mon, 10/21/2013 - 23:48 | 4078390 Anusocracy
Anusocracy's picture

Glorious will be the day when people pay their property taxes with home equity loans.

Mon, 10/21/2013 - 18:44 | 4077542 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Need moar tyranny!!! The masses will beg for it, in fact they already have.

Mon, 10/21/2013 - 18:50 | 4077549 max2205
max2205's picture

Seen sin city?.....this is exactly what's going on

Mon, 10/21/2013 - 20:20 | 4077770 BLOTTO
BLOTTO's picture

The 'can keeps getting kicked' until they queue in either a world altering

man made 'natural' disaster or

man made disease or

false flag war...

then the faked alien invasion will end the can kicking as they are here to 'save us.'



Mon, 10/21/2013 - 20:32 | 4077812 ZH Snob
ZH Snob's picture

Hey, dude, this is what the douchebags refer to as the new normal.

Mon, 10/21/2013 - 20:33 | 4077813 ZH Snob
ZH Snob's picture

Get with the program!

Mon, 10/21/2013 - 21:52 | 4078080 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

god damn these central bankers really nailed this plan huh? i mean come on give them some credit. control the media, hollywood, currency, lawmakers, the law in general. constantly expand the size and scope of your control and tyranny. a+ for execution. and we're naive enough to think we can stop this. it's going to crash, the question is will americans react in a way that brings us back towards a sane, limited, constitutional republic which is rooted in the law and the idea of freedom and equality, or are we destined for chaos, ruin, despotism, and misery? history speaks volumes to the answer to that question. not looking good.

Mon, 10/21/2013 - 23:56 | 4078403 Anusocracy
Anusocracy's picture

Control is a very powerful survival strategy - and it certainly doesn't hurt to have the controlled be so willing.

Thank you worthless asshole voters, you are totally clueless.

Mon, 10/21/2013 - 21:54 | 4078082 Bro of the Sorr...
Bro of the Sorrowful Figure's picture


Mon, 10/21/2013 - 20:04 | 4077738 steelhead23
steelhead23's picture

"We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time."

Yes, the global banking cartel has indeed made all necessary preparations.  Remember those old fire alarms that said "In case of fire, break glass"?  My guess is that those preparations (isolated locations to which the elite can escape?) will be implemented just as soon as hell freezes over.

In 1972 I purchased my first new car - for $1,450.  Sunday, my wife test drove a new commuter car - much nicer than my old Austin, for about $30,000.  Thus, the vaunted Federal Reserve has so wonderfully protected the purchasing power of Bucky that I now need 20 of them to buy what a single would 40 years ago - a 7.7% annual rate of devaluation.  God Bless the Federal Reserve.  

Mon, 10/21/2013 - 21:26 | 4077991 disabledvet
disabledvet's picture

don't forget to check the barrels before you pull the trigger however.

Mon, 10/21/2013 - 17:34 | 4077348 Mike in GA
Mike in GA's picture

If 40% of the federal budget is borrowed, what does that tell us about how far the deflationary pulse goes when it hits?   If 40% of gov't expenditures cannot be funded, that's people directly employed as well as contracts in the quasi-private economy and .mil contracts and people.  Big.  Really big.  Long dry powder and pms. 

Tue, 10/22/2013 - 00:01 | 4078415 Anusocracy
Anusocracy's picture

It won't be pretty for the 'real' economy if the sham economy goes away.

Mon, 10/21/2013 - 18:26 | 4077479 Obadiah
Obadiah's picture


Mon, 10/21/2013 - 18:53 | 4077558 Nothing but the...
Nothing but the truth.'s picture

And you will also not like the fact they conficated all private gold holdings, as part of that excercise.

Mon, 10/21/2013 - 16:53 | 4077225 slaughterer
slaughterer's picture

Another all time high.  ZH response: pull out another Faber doom interview.  

Mon, 10/21/2013 - 17:03 | 4077260 Mordenkainen
Mordenkainen's picture

Another all time nominal high. How about in terms of real wealth?

Mon, 10/21/2013 - 17:15 | 4077287 Bay of Pigs
Bay of Pigs's picture

The clip is from the BlowHorn, not ZH. Funny they would run that on a day like this.

What do you say slaughterer? Is Faber is wrong? This stock bubble goes on forever?

Mon, 10/21/2013 - 17:40 | 4077357 Rainman
Rainman's picture

sorry to interrupt with a one word answer...CHAIRSATANESS !

Mon, 10/21/2013 - 17:50 | 4077392 eclectic syncretist
eclectic syncretist's picture

Would you like to buy some NFLX from me?  It's only a pound of silver per share this evening.  How much would you like?

Mon, 10/21/2013 - 16:53 | 4077226 Bindar Dundat
Bindar Dundat's picture

Full points to JBI for calling it what it is -- fraud.

Mon, 10/21/2013 - 16:56 | 4077235 slotmouth
slotmouth's picture

Marc Faber obviously didn't see that Netflix increased earnings from 49 cents to 52 cents.  This massive wealth creation should propel the global economy to new highs.

Mon, 10/21/2013 - 17:06 | 4077266 cougar_w
cougar_w's picture

There is no wealth creation. The wealth in question is funhouse wealth, reflected infinitely by a pair of mirrors. It is all illusion, the actual material wealth being reflected is already far away in stronger hands. The rest of us are left holding rehypothecated smoke.

Faber gets it. The global economy is stuck in a death spiral. There is no practical escape, the only strategy is to be the last turd to be sucked down the hole into the Stygian sewer of unintended consequences.

Mon, 10/21/2013 - 18:22 | 4077449 KnightsofNee
KnightsofNee's picture

"Stygian sewer." What a wonderfully obscure reference. God I love ZH!!!!

Mon, 10/21/2013 - 18:26 | 4077483 SilverIsKing
SilverIsKing's picture

Is rehypothecated smoke anything like second hand smoke?  If so, that sounds real bad.

Mon, 10/21/2013 - 19:56 | 4077712 cougar_w
cougar_w's picture

It's second-hand smoke blown out of someone's ass.

Don't think it can get any worse than that actually.

Mon, 10/21/2013 - 21:41 | 4078039 disabledvet
disabledvet's picture

(fill in place) has been obliterated with a 1000 megaton financial weapon of mass destruction...and still they complain. Or is it want more? These things can get very confusing sometimes. Who wrote this script again?

Mon, 10/21/2013 - 21:15 | 4077958 MaxThrust
MaxThrust's picture

"Stigian Sewer"

I love that comment as well.

Often I find these entries by other ZH'ers more interesting than the main article. It's incredible how diverse the ides are on this site. Helps to broaden my perspective.


Tue, 10/22/2013 - 01:04 | 4078487 prains
prains's picture

plus under multiple scenarios you'll probably get a good heads up on when to bug out

Mon, 10/21/2013 - 17:18 | 4077295 greatbeard
greatbeard's picture

>> Netflix increased earnings from 49 cents to 52 cents.

Don't bet the farm on that.  I'm thinking, pretty sure actually, that I'm going to cancel my streaming account.  Cats out of the bag, short at will.



Mon, 10/21/2013 - 17:40 | 4077360 Hongcha
Hongcha's picture

NFLX ... they're so high & mighty ... no porn.  Like Walgreens refusing to handle the unclean cigarettes.  I used to go there for my American Spirits ... I quietly, bemusedly loathe this gutless and doomed generation.  My family & friends have no clue how boring I find this clusterfuck... and the smartphone yuppies will be herded right in, I am afraid.

Mon, 10/21/2013 - 19:02 | 4077580 greatbeard
greatbeard's picture

>> my American Spirits .

I haven't smoked in many years.  I smoked a few American Spirits but there was an import we bought in a round green tin.  Sweet, moist, roll your own.  Now that was smoking like it should be.  I swear, tree hugging, health conscious, enviro wako that I am, I'd still keep a can around to enjoy with my morning coffee if I could get it. 

Tue, 10/22/2013 - 00:11 | 4078429 scam_MERS
scam_MERS's picture

And how long before they limit streaming to just one device/IP? I've been watching NFLX for over two years for free using my friend's account. Even then, I don't see much on there that I care to watch. If I had to pay for it, I wouldn't have it. I get free cable (for now) since the signal isn't completely trapped on my HSI only line. I know that's going away with the advent of all digital signals with encryption, so at the point that both Cable & NFLX is cut off, I will just chuck the TV out. There's very little content out there worth paying for, certainly not Honey Boo-Boo or shows about Ducks or Towing away cars...

Mon, 10/21/2013 - 23:38 | 4078377 chump666
chump666's picture

You are probably being sarcastic.  But any one who trades knows that operations costs are hand in hand with inflation/bubble/evaluation blowouts.  There will be a point when companies will have to cut-costs (staff cuts), since overheads ain't coming down baby...pure inflation trade.   Distorted by money printing and HFTs.

It's fools paradise

Mon, 10/21/2013 - 17:19 | 4077296 Dick Buttkiss
Dick Buttkiss's picture

You can't fractionalize Bitcoin, however, nor can you inflate it, as it's algorithmically straightjacked to deflate, meaning to increase in purchasing power over time (its early gyrations being but birth pangs).

Sure, store up PMs (the PTB can and probably will flip the Kill Switch on the Internet, though not successfully), but store up Bitcoins as well, buying the dips in both cases in preparation for TEOTWAWKI and what lies on the other side.

The state is history, literally, and biography is in the offing:

Set sail and stay the course.

Mon, 10/21/2013 - 19:19 | 4077623 Herd Redirectio...
Herd Redirection Committee's picture

I just feel that if Bitcoin were really so attractive, it would do a better job of selling itself.  I mean, look at gold.  They have to repeatedly suppress the price to keep people away from it (which is crazy, because people don't realize they are being offered a sale price). 

So on the one hand, you have an alternative currency that needs to be marketed to people, and people need to be convinced to use and accept it, and then there is gold.    Hmmm....

Tue, 10/22/2013 - 01:31 | 4078521 CvlDobd
CvlDobd's picture

I'm fairly certain they blew a bubble in bitcoin, in order for there to be a bubble to burst in bitcoin. So now we can call it an "unstable" currency because it had a bubble blown in it in the past. Then TPTB shut down an underground drug site and constantly attached bitcoin to all the articles about the bust. So the currency is in bed with drug dealers. At the same time they constantly point out that it isn't issed by a government which is bad. (I actually think that's great but the unthinking majority will be told it is bad so it shall be bnad) TPTB are trying to get people to view bitcoin as an unstable currency for drug dealers. Call me crazy but that's not much different than them trying to suppress the gold price.

Mon, 10/21/2013 - 18:41 | 4077534 resurger
resurger's picture

The Mericans now pull hats out of rabbits.

Mon, 10/21/2013 - 19:44 | 4077686 Wahooo
Wahooo's picture

So true. These are not people who lose their wealth.

Mon, 10/21/2013 - 20:17 | 4077779 thurstjo63
thurstjo63's picture

LOL! Good joke!!! You don't seem to grasp the fact that even if they do that, the wave of defaults would take all the banks down with them. The only thing that has kept the banks functioning up until now is the Fed and the fact that the Swap Dealers Association won't call any of the defaults in Europe "credit events". As they are all holding each others derivative debt and that equates to well over $600 trillion, there is absolutely no hope of them recovering. And if you think they banks have been "earning" money, you're sadly mistaken. Almost all of their "earnings" have come from reserve releases (i.e. the money that they got from the Fed is suddenly and magically no longer needed as reserve because the economy is better!?!).

Wake up!

Tue, 10/22/2013 - 05:41 | 4078667 Ned Zeppelin
Ned Zeppelin's picture

Only the TBTFs would crash. Just as it was in 2008 the Wall Street implosion would leave Main Street largely untouched, and better off for having lost the parasites.

They preach disaster and foment fear of Armageddon, when it would only be them who would lose everything. The derivatives edifice does not represent real wealth.

Mon, 10/21/2013 - 22:53 | 4078268 lasvegaspersona
lasvegaspersona's picture


Yes a new curency but it will be forced to behave due to competition. The Euro already has gold, market to market, on it's balance sheet. If China does this too and there is no reserve currency (just settlement) then the dollar will either constrain itself or it will inflate and gold willl cost more in dollars...and thus settlement will be more painful.

Remember, after the reichsmark the Weimar tried the took the country a while until it finally got control of it's printing.

Tue, 10/22/2013 - 01:52 | 4078542 Silver Bully
Silver Bully's picture

'The US has a habit of pulling a rabbit out of the hat'

I hate to break it to you, but that's not pulling a rabbit out of the hat. Go look at the collapse of the Soviet Union and the ruble. No, the real problem won't be the day the con stops. The problem is the Fed can kick the can longer than most people can remain solvent. Meanwhile, the con continues with the Fed lulling everyone to hum along 'this is the song that never ends . . .'

Tue, 10/22/2013 - 12:49 | 4079814 N2OJoe
N2OJoe's picture

No one doubts that the US will issue a new currency but da gubmint HAS no PM's left to back it with...

Mon, 10/21/2013 - 16:48 | 4077205 yogibear
yogibear's picture

The Fed's only policy is to print like a MoFo. Everyone already realizes they can't/won't taper.

It's print maybe even more until the US dollar blows apart. What a strategy. We have PhDs for this?

Mon, 10/21/2013 - 17:40 | 4077364 Pure Evil
Pure Evil's picture

Well, PhD does stand for Pile Higher and Deeper, so yeah, you need a PhD to print and print and print and print and print.........

Mon, 10/21/2013 - 17:57 | 4077414 eclectic syncretist
eclectic syncretist's picture

The Fed is now committed to continue the charade until it is the last person without a chair when the music stops.  And what does it care anyway?  The "money" was all imagineered so all it will lose is "credibility", which matters not so long as the banksters can abscond with a decent payday that will propitiate their delusions of granduer.  And those who don't get out early enough to avoid the sudden dissapearance of the chairs all at once will only get what they deserved, because they didn't heed the Fed's true mantra, "dilution is the only solution".

Mon, 10/21/2013 - 18:25 | 4077480 KnightsofNee
KnightsofNee's picture

When everybody else is dancing, you gotta dance too.

Mon, 10/21/2013 - 19:21 | 4077628 Herd Redirectio...
Herd Redirection Committee's picture

Sure, but say you know that a bunch of the people dancing are going to receive a text message just before the music stops, and you aren't one of them.  What do you do?

Mon, 10/21/2013 - 20:08 | 4077751 unrulian
unrulian's picture

Donkey punch the oldest one and take his chair

Mon, 10/21/2013 - 16:54 | 4077211 eatthebanksters
eatthebanksters's picture

There is no plan, there will be no place to run or hide whenthe shit hits the fan.  You can be sure politicians will be smiling and giving shit away for votes until the world collapses under their feet.  The lessons to be learned:  1. Manipulated growth is bad, 2. There is no such thing as a free lunch - someone pays for it, 3.  Natural law says if you don't work hard enough to carry your weight then you die.  Free markets with fucking rules that cleanse the scheisters from the picture, that's a workable plan.

Mon, 10/21/2013 - 17:01 | 4077254 TheFreeLance
TheFreeLance's picture

Any plan blew up as soon as the fascists figured out that handing the Countrywide mess to BAC solved nothing. In other words, we are 5 years into a conspiracy to fleece the American people. 

Mon, 10/21/2013 - 18:34 | 4077513 SilverIsKing
SilverIsKing's picture

Any plan blew up as soon as the fascists figured out that handing the Countrywide mess to BAC solved nothing. In other words, we are 100 years into a conspiracy to fleece the American people.



Mon, 10/21/2013 - 17:08 | 4077274 NOTaREALmerican
NOTaREALmerican's picture

Re;  Free markets with fucking rules

Rules, like laws, are for children to follow.   Which is why all markets are manipulated by adults.

Only a dumbass (or a child) would regulate and monitor a market and not get anything for their efforts.  

We've got the only system possible:  a survival of the fittest system with the smart-n-savvy people screwing the dumbasses.

Mon, 10/21/2013 - 20:02 | 4077731 eatthebanksters
eatthebanksters's picture

There are always crooks and they need to be taken to the shed and have the shit kicked out of them...those are the kind of rules I'm talking about...without them ripoffs will abound.  Two rules, be honest and exercise fiduciary responsibility when you represent someone other than yourself.

Mon, 10/21/2013 - 20:10 | 4077760 ebworthen
ebworthen's picture

If I could conjure the skulls of beheaded despots and the "fittest" waste of space monkeys to appear under your covers I would.

Along with the corpses of the innocent whom they lead to death through starvation, depravity, and war.

Mon, 10/21/2013 - 20:59 | 4077896 Sabibaby
Sabibaby's picture

We're the smart and Davy the ones jumping out of skyscrapers? I could see them being thrown out.

Mon, 10/21/2013 - 21:44 | 4077897 Sabibaby
Sabibaby's picture


Mon, 10/21/2013 - 17:36 | 4077354 Hongcha
Hongcha's picture

Communities will drift back to racial cordoning, as they were for centuries before our masters decided that 30,000 years of history could be rewritten with legislation and a little selling.

Just stay out of the FEMA Designated Communities - they will attempt to integrate the camps until the riots put an end to it.

The camps will be the end of the road for many.

Tue, 10/22/2013 - 04:02 | 4078616 Notarocketscientist
Notarocketscientist's picture

There has been racial integration around the world for centuries.   It has ended badly generally when one treats the other races badly - eg. America enslaving millions of blacks

Mon, 10/21/2013 - 17:49 | 4077385 buyingsterling
buyingsterling's picture

.gov will hire the fat welfare recipients to stand over us with submachine guns while we work in the rice paddies. That's their entire plan in a nutshell. I like yours better.

Mon, 10/21/2013 - 22:16 | 4078173 Imminent Crucible
Imminent Crucible's picture

".gov will hire the fat welfare recipients to stand over us with submachine guns"

Yeah, and after about 20 minutes the fat welfare recipients will be under a shade tree smoking dope and fornicating their giant butts off.  Then you can just walk away from your rice paddy.

See you at Hotel Perla in La Paz.

Mon, 10/21/2013 - 18:00 | 4077424 eclectic syncretist
eclectic syncretist's picture

One other key lesson that you seem to have forgotten.  The masses will believe what they want to believe, including that some power-hungry sociopath can have a valid and truly workable plan that will allow everyone to prosper simultaneously without having to do anything to earn or deserve it.

Mon, 10/21/2013 - 20:01 | 4077727 Pareto
Pareto's picture

Free markets with fucking rules that cleanse the scheisters from the picture, that's a workable plan.

Its the ONLY  workable plan and the sad thing is that we already have experience with it.  We know that it works.  But, we are complacent with lies, and are afraid of the truth.  Until this changes.........

Tue, 10/22/2013 - 01:07 | 4078493 prains
prains's picture

SHTF      is the ulitmate free market result and the free market is coming

Mon, 10/21/2013 - 16:55 | 4077228 yrad
yrad's picture

Crazy old man...

Mon, 10/21/2013 - 17:20 | 4077302 greatbeard
greatbeard's picture

>> Crazy old man.

You say that like it's a bad thing.

Mon, 10/21/2013 - 19:16 | 4077615 Running On Bing...
Running On Bingo Fuel's picture

MSM should require proof that you are covered by Obamacare, only then can you openly comment on USA matters.

That'll silence this crazy old coot.

Mon, 10/21/2013 - 16:55 | 4077231 El Vaquero
El Vaquero's picture

Deflationary collapse?  I just don't see that in anything priced in dollars. Not with the Fed singing "The wheels on the bus go round and round" while driving it like Dale Earnhardt. 

Mon, 10/21/2013 - 17:16 | 4077284 NOTaREALmerican
NOTaREALmerican's picture

Re:  I just don't see that in anything priced in dollars

That's the problem,  the "price in dollars" distorts the signals as everything is priced in fiat.

It's like measuring gravity.   How do you remove the effect of gravity to measure it?

Mon, 10/21/2013 - 18:17 | 4077441 Tall Tom
Tall Tom's picture

Well...I can take a ride in an Aircraft with a Parabolic Trajectory to experience weightlessness, removing the affect of Gravitational Force for a limited time period. I can orbit a Spacecraft which will be in constant Freefall to remove the affects of Gravitational Force. In Free Fall you do not experience the affects of Gravity.


I just taught a youngster this on Saturday. I showed him my Flying Model Space Shuttle. He tilted it and the Orbiter fell off. So I asked him what caused the Orbiter to fall off. GRAVITY.


Then I showed him a video on YouTube of that very same Rocket in flight. I paused the screen when the rocket was at the very same angle and the Orbiter had not separated. I asked him why that was. (Both the Main Stack and Orbiter were in Free Fall) Only after the Ejection Charge fired (which deploys a parachute on the Main Stack) was the momentum of the Main Stack retarded and the Orbiter detached and glided to a landing.

Yet there are ways to measure Gravity while being affected by the field. It takes a bit of inferential thought to design these measurements. Yet it can be accomplished.


The price in US Dollars can be a distortion. But one is able to correct for distortions through the addition of corrective Differentials.


So are you looking for a Universal Constant?


In Relativity Physics that constant is Light Speed. Since every measurement is relative then one must consider Light Speed as the constant that everything else is measured against. Mass is corrected due to relative speed. So is Length and the passage of Time, whatever Time might be, as it is also relative to an observer.


In Economics I prefer to use Gold as the constant. It is a personal preference as it has been standard for the past 6000 years. But there were some that wanted that Standard removed in order to allow them to obfuscate real valuations. In that way they could FRAUD a public without any wits much easier. So they DENIED REALITY and legislated the Gold Standard away. (It is actually as stupid as attempting to outlaw Gravity...)


Of course when you deny reality then very bad events crashing into the ground because you were told that the Laws of Gravity no longer applied. Or, like crumbling economies that are destined for the same fate as the one who jumped.


Yes, blinded and blindfolded, they will feel quite weightless...for a little while. Then that terminal impact event happens. They may survive it. But if they do it is going to be an extremely painful recovery. That is just the consequence for denying reality. Termination or injury.


Personally I would not want to deny reality. I do not like the pain of injury, but as for death...that seems quite desirable at present because I am not blindfolded and I can see the ground approaching....rapidly.


The question is...Can you?

Mon, 10/21/2013 - 17:44 | 4077372 All_Your_Base
All_Your_Base's picture

IMO the collapse of credit money will outweigh any creation of new Bernanks, Yellens, etc. hence the potential for deflation, followed by war and hyperinflation.

Mon, 10/21/2013 - 20:06 | 4077742 August
August's picture

Lets' just call it a "bad debt collapse", and avoid the issue as to whether it's truly "deflationary" or not.

While I hold a fair amount of fiat currency, anyone who holds "100% cash" is asking for trouble, unless that "cash" includes tangible assets.

Mon, 10/21/2013 - 23:19 | 4078337 lasvegaspersona
lasvegaspersona's picture


You lack faith..

Bernacke will not be out done by deflation. As long as there are asset to be bought he will buy them and when all the 'good' assets are gone he will buy shitty ones and then when the deflationary pain gets too bad (and even the Tea Party begs for mercy) he will buy all the treasuries the USG can muster...and the USG will not dissapoint. If it takes quadrillions...we will have quadrillions.

It seems inpossible today but in 2002 a hamburger in Zimbzbwe cost 2 bucks by 2008 100 trillion dollar bills were clogging the gutters.

When the stock market hits 35,000 the people will start to realize what is really happening (that's a joke btw, the people will cheer and keep cheering until they too see 100 trillion dollar bills clogging the gutters.) Of course we could just hear a slight pop when something goes wrong in the derivatives market...the final effect will be the same...the dollar will cease to be a useful currency.

Mon, 10/21/2013 - 17:56 | 4077407 Mike in GA
Mike in GA's picture

For 5 years the fed has pushed money into the economy to the tune of trillions.  The most they've accomplished is the artificially levitated stock market indices.  (and we all know the HFT/Algo trading is >50% of the market.  Unemployment has increased despite the numbers being hedonically adjusted/manipulated.  The digital soup line keeps the hungry out of sight of the nightly news but growth is not happening.  Earnings have fallen.  Cost of gasoline has nearly doubled in 5 years.  Housing activity, despite the constant lying of the NAR, dipped at the first mention of a taper and is yet to recover.  As ZH readers are aware, even the hedgies who were big players are getting out now.

If this doesn't look like deflation, I understand.  I think a lot of knowledgeable people disagree on what is to come.  The Janzsen guy at I-Tulip calls it "Ka-Poom Theory", where the initial inflationary "Ka" of liquidity surging thru an economy gives way to the deflationary collapse "Poom" phase of economic implosion. 

My premise is that we have reached the limits of democracy and they are exactly as described from the Athenians to Tocqueville. We are no longer “Slouching Toward Gomorrah” (Robert Bork, 1996) but accelerating toward all the endpoints of civil culture, moral, financial, economic. Digitally delivered bread and circuses differ from Rome’s only in the delivery technology. Human governance problems of power and greed have not changed one iota in many millennia. Greed, graft and corruption are too well entrenched. We are running full speed ahead into historically predictable outcomes, none of which remotely resemble utopia.


Mon, 10/21/2013 - 18:28 | 4077487 El Vaquero
El Vaquero's picture

I get what you and All_Your_Base are saying, I am just of the opinion that as shit starts to unravel faster, the printing will accelerate with it.  Not to mention all of the dollars in foriegn hands that could come flooding back. 


But I think that we both agree that where we are is not good, and where we are heading is even worse.  The debate is no longer if the dollar will die, it is how and when.  As you say, greed, graft and corruption.  Now that it has been laid bare for all to see, it is so intertwined in everything that many will choose to not see it.

Mon, 10/21/2013 - 20:59 | 4077894 Ned Zeppelin
Ned Zeppelin's picture

Thought provoking dude.


Tue, 10/22/2013 - 09:47 | 4079207 tip e. canoe
tip e. canoe's picture

they didn't call the Dark Ages for nuthin'.   question i've always asked is : who was it Dark for?  everyone or only those who wrote the history books?

Mon, 10/21/2013 - 16:56 | 4077237 0b1knob
0b1knob's picture

What happens when you try to pull a rabbit out of a hat and wind up holding a black swan by the neck?   Or an (Asian) tiger by the tail?


Actually a return to a gold standard and stable money could be the totally unexpected end game.   Stable money would freeze the social and economic classes in place.   The 1% hasn't been transferring wealth from the 99% only to see their financial assets inflated away (along with the 99%'s debts) to zero by inflation.    We may all end up "crucified on a cross of gold" (to use Bryan's phrase) by the powers that be.  Inflation tends to be an economic lubricant and the people at the top are going to give it to us good and hard without benefit of lubrication.

Mon, 10/21/2013 - 18:13 | 4077452 RafterManFMJ
RafterManFMJ's picture

That's my personal theory; china, and the US soon after goes to a gold standard.

Other nations do the same but the kicker is a US devaluation against gold in the range of 500 percent.

Mon, 10/21/2013 - 18:41 | 4077530 Rubbish
Rubbish's picture

Kill it with fire, not one of those assets survive except GOLD....


The Match Wins = TMW

Mon, 10/21/2013 - 17:05 | 4077265 Fuh Querada
Fuh Querada's picture

Jim Willie predicts a split US dollar cash unit. The domestic one will devalue in 2 stages by 25-30% each time, leading to riots at ATM machines, WalMart and gas stations. The internationally held USD will retain the pre-crash value. (Emphasis on currency not Treasurys).

Mon, 10/21/2013 - 17:16 | 4077289 NOTaREALmerican
NOTaREALmerican's picture

Re;  split US dollar cash unit

A two tier currency for a two tier society.   

Mon, 10/21/2013 - 17:23 | 4077308 greatbeard
greatbeard's picture

>> Jim Willie predicts

Well that pretty much rules that out.

Mon, 10/21/2013 - 17:31 | 4077330 Bay of Pigs
Bay of Pigs's picture

I've followed Jim Willie's rantings for 15 years now. He's been plenty right on lots of things. Not always on target, but nobody else has either.

Mon, 10/21/2013 - 18:02 | 4077428 eclectic syncretist
eclectic syncretist's picture

Jim Willie sells rants, not investment ideas that make money.  Do your own research and you'll be better off.

Mon, 10/21/2013 - 18:16 | 4077460 RafterManFMJ
RafterManFMJ's picture

Jim Willie is part of my research.

Mon, 10/21/2013 - 19:55 | 4077708 Pareto
Pareto's picture

I've read Jim Willie for years.  You have problems with the word "predictions".  Actually Jim doesnt predict so much as he arrives at conclusions based on an anlytical presentation of the economic distortions that arrive from perverse and misaligned incentives that occur as a result of non-market based intervention by central authorities.  while I wouldn't necessarily bet the farm on a prediction, ignore Jim Willie et al like him, and you do so at your own peril.

Mon, 10/21/2013 - 23:26 | 4078354 lasvegaspersona
lasvegaspersona's picture

I enjoy a good Jim Willie rant. For a real look at the likely future I'll take the slightly wordy fofoa. What fofoa lacks in wacky enthusiasm he makes up for in ironclad thinking. The guy hasn't even made a typo in 5 years. Dis him at your peril.

Mon, 10/21/2013 - 17:11 | 4077273 ebworthen
ebworthen's picture

So refreshing to see his face and hear reality behind the utter bullshit of "Win U.S. Back" tagline in red, white, and blue.

If CNBC meant the cabal of malfeasant banksters and their politician lackey's we'd be in a sane world.

What they mean by it is:  more QE, more hollow promises, more wealth disparity, more SSDD.

It should read "Tear the Fucker Down!"

Mon, 10/21/2013 - 17:17 | 4077288 SheepDog-One
SheepDog-One's picture

Very scary too, since now the bubble must not only be supported, but expanded exponentially at an ever increasing rate. Good luck.

Mon, 10/21/2013 - 17:51 | 4077395 WhackoWarner
WhackoWarner's picture

Yup.  I think they keep this puppy alive for a few more years. 

Which will be very very bad.  And buy more time for people like me.  And hopefully you.

Mon, 10/21/2013 - 17:24 | 4077311 Smartie37
Smartie37's picture

WHO will be the "child" to exclaim "But he isn't wearing any clothes!" loud enough for the crowd to hear it, and to be innocent enough to be BELIEVED BY the crowd?

Who?  Any nominees out there?

Mon, 10/21/2013 - 17:34 | 4077342 Bawneee Fwank
Bawneee Fwank's picture

That child probably got aborted.

Mon, 10/21/2013 - 23:37 | 4078374 americanreality
americanreality's picture

Excellent.  I always like a good abortion joke. 

Tue, 10/22/2013 - 06:41 | 4078715 matrix2012
matrix2012's picture

"WHO will be the "child" to exclaim "But he isn't wearing any clothes!" loud enough for the crowd to hear it, and to be innocent enough to be BELIEVED BY the crowd?

Who?  Any nominees out there?"


The "child" should be of the virgin birth and conceived immaculately to be innocent enough to obtain the rightful notices of the mass dumbasses... :-) 

Yet such "child" won't get into acts untill the sheeople feel the more real pains from all the squeezes and more collapses....


he he just kidding, there won't be such transcendental envoy even though human being does love such celestial thoughts.


The mass dumbasses will only believe it when it's too late... my opinion it's an unavoidable collapsible reset.

There are simply too many useless eaters, some substantial culling becomes an existential matter!


In Ernest Hemingway’s "The Sun Also Rises," one of the main characters is asked how he went bankrupt.

"Two ways," he responds.  "Gradually and then suddenly."

Mon, 10/21/2013 - 17:28 | 4077325 Saucy-Jack
Saucy-Jack's picture

I want doom and I want it now!

Mon, 10/21/2013 - 19:29 | 4077646 RaceToTheBottom
RaceToTheBottom's picture

To DOOM or not to DOOM, that is the question....

Mon, 10/21/2013 - 17:29 | 4077326 Fix It Again Timmy
Fix It Again Timmy's picture

I have absolute confidence in our government's abilities, look at the Obama Care website! ....

Mon, 10/21/2013 - 17:34 | 4077346 robertocarlos
robertocarlos's picture

As long as you don't buy or rent anything, you'll be fine.

Mon, 10/21/2013 - 17:42 | 4077368 Bangin7GramRocks
Bangin7GramRocks's picture

The day the credit card machines and ATM's stop working will be the end game. You better have a loaded gun at the ready that day.

Mon, 10/21/2013 - 17:56 | 4077409 WhackoWarner
WhackoWarner's picture

No the priority is not weapons.


Have a stash of cash.


Have PM's

Have food for everyone including your pets friends.  I got 12 months easy.

Have fuel.. have some happy chickens.  Own a fishing pole.

I doubt an assualt rifle will feed you unless you are willing to let all your own morals fly out of your brain.

Mon, 10/21/2013 - 18:20 | 4077469 forwardho
forwardho's picture

Lets all be honest shall we???

The most abundant Fresh meat source will be other humans.

Embrace the chaos once it falls.

Others will.

Mon, 10/21/2013 - 18:22 | 4077475 silverserfer
silverserfer's picture

great idea you should start that today!

Mon, 10/21/2013 - 19:15 | 4077613 Bad Attitude
Bad Attitude's picture

It all depends on how things collapse. If it is a slow decline like Argentina, then maybe cash and PMs will have more utility than weapons, but weapons will still be beneficial as crime increases. If the collapse is sudden, such as a SNAP card system failure lasting more than a few hours, then you will need those weapons if you are going to have even a chance of holding onto your food, chickens, fuel and fishing pole.

Forward (over the cliff).


Mon, 10/21/2013 - 19:16 | 4077617 Saucy-Jack
Saucy-Jack's picture

An assault weapon may not feed you, but it might just protect you from becoming food.

Mon, 10/21/2013 - 22:07 | 4078140 DirkDiggler11
DirkDiggler11's picture

When the day happens that the ATM's all say "took your money and ran" the most valuable and the most liquid assets anyone can own are guns and ammo.

Mon, 10/21/2013 - 17:44 | 4077375 falak pema
falak pema's picture

the man from gloom boom and doom has lost one tooth; the boom wisdom tooth; all he has left is gloom and doom.

Mon, 10/21/2013 - 17:47 | 4077381 roonbox
roonbox's picture

Was that a Joke? No Seriously, is there something I'm missing?

Mon, 10/21/2013 - 18:02 | 4077415 falak pema
falak pema's picture

yes, Its a play of words on his HF name. Don't take words so seriously. Stick to the reality.

The irony is that these investors who ONLY play the money casino game, are victims of their own casino culture.

SO its appropriate his conclusion : WE ARE THE BUBBLE. Its true for the global financial community.

FOr the others its just that we stay the "useful idiots" of this sleight of hand, the biggest scam of the century.

Mon, 10/21/2013 - 17:52 | 4077396 Iam Yue2
Iam Yue2's picture

Because of all we've seen, because of all we've said; We are the dead.

Mon, 10/21/2013 - 17:54 | 4077402 buyingsterling
buyingsterling's picture

Does the CNBC video stream suck for everyone, or just me?

Mon, 10/21/2013 - 18:15 | 4077459 forwardho
forwardho's picture

You answered your own question with CNBC.

Mon, 10/21/2013 - 18:34 | 4077492 Charles Nelson ...
Charles Nelson Reilly's picture

Works for me, I just watched Maria finish herself off w/ a 3" dildo replica of Jaime's Dimon. I closed it when Liesman walked in wearing a gag ball and looking for a dominatrix.

Mon, 10/21/2013 - 22:10 | 4078147 DirkDiggler11
DirkDiggler11's picture

Liesman likes to play the gimp.... Wake the gimp up, Berskankie wants to play....

Mon, 10/21/2013 - 18:05 | 4077434 chart_gazer
chart_gazer's picture
he is correct "one day this asset inflation will lead to a deflationary collapse one way or the other."   but you will be very broke if you invest on his advice today. consider everything that should have crushed this market, but there is an unlimited amount of free money provided to the speculators to prop up the market. this could/will go on for a very long time until a very major event occurs and even then they will throw more newly created money at it. forward pe at 2000 market top 25.9, today's 16.x.  a long way to go to the top
Mon, 10/21/2013 - 18:14 | 4077456 blindman
blindman's picture

as long as the exit strategy applies to
next year and the bonds are bought by
someone or something , even an alien
species that has credit at the fed windows,
everything will digress smoothly and the
collateral and assets can be exchanged for
vapor from the central banks or mainly the
"it is good to be the king."

Mon, 10/21/2013 - 18:18 | 4077464 chump666
chump666's picture

He is so right, a completely distorted global ecomomy out of whack and f*cked up till it blows up.

Quite depressing actually.


Mon, 10/21/2013 - 18:21 | 4077472 Radical Marijuana
Radical Marijuana's picture

As usual, I agreed with Faber, except I think he is still too optimistic. Generally, I feel that various people who were able to have been relatively successful within the established systems, by being more realistic about them, still tend to continue to be too optimistic about the future. The fundamentals are that what would be theoretically necessary to evolve better human and industrial ecologies, within natural ecologies, is almost impossible within the established systems, being operated by force backed frauds. Our fundamentally fraudulent financial accounting systems are entrenched, and therefore, have every advantage to protect and promote themselves, despite that they are nothing but huge lies, backed by violence. The degree to which the world is dominated by legalized lies, backed by legalized violence, IS the way that we run our current human and industrial ecologies, which are destroying natural ecologies.

The insanity of having a "money" system in which "money" can be created out of nothing, as debts, makes it impossible for better evolutionary ecologies to evolve human and industrial systems that actually operate within the real limits of the natural systems. The only way that we could, perhaps, have evolutionary ecologies for human and industrial activities is for the current ones to finish going mad, and thereafter, that maybe opening up new niches for new systems to emerge?

As the world leader in these trends, the USA shows more than anywhere else how the funding of the political processes have enabled the parasites within the system to runaway. In every different system that one looks at in the USA, which repeats its pattern throughout the rest of the world, the maximizing of short-term advantages have been legalized, due to the ability of those doing that to dominate the funding of the political processes, which have gained the maximum possible leverage from successfully doing that.

E.g., Obamacare is the runaway development of the profit from disease system, working with the profit from junk food system, to destroy the overall health of the nation as whole. Over and over again, the same pattern repeats itself, where every possible way that legalized lies, backed by legalized violence, could corrupt the government HAS DONE SO, since the short-term advantages gained by those doing that have given them the maximum possible real leverage to continue to do so. Those who made the most short-term profit from corrupting the government were then able to reinvest some of that profit from fraud in more fraud, through more domination of the funding of the political processes. Every area one looks at, throughout foreign affairs, and throughout all domestic issues, the same pattern repeats!

The funding of the political processes have resulted in runaway vicious spirals of triumphant frauds controlling everything that gets done. That maximization of the private profits for a few simultaneously maximizes the real long term costs for everyone. The core of this completely corrupt craziness is the monetary and taxation system. Since those are triumphant frauds, backed by force, which deliberately ignore the basic laws of nature, and lie about everything as much as they can, since they are hiding that their basic realities ARE frauds, which only work because they back up their deceits by destroying anyone who gets in their way, we have the actual human and industrial ecologies evolving on that basis, where they act in utterly insane ways, because everything they do was based on being able to get away with deliberately ignoring the basic laws of nature, by instituting the basic frauds whereby "money" can be created out of nothing as debts, and that "money" can disappear back to nothing, when those debts disappear. That IDEA totally violates the basic laws of nature, except that, of course, it does not do so when understood as simply being triumphant fraud.

The entire edifice of Neolithic Civilization was huge lies, backed by violence, mostly in the forms of one state religion after another, with the current state religion being the monetary system. Those systems are built on the foundations of force backed frauds, in which it is necessary to keep the majority of people ignorant and afraid. Overall, that is the way that the human species now operates on Planet Earth. The ways that deceits, backed by destruction, were able to take control over human activities were actually consistent with the natural energy laws. However, the fact that backing up frauds was possible, and worked, still never made the behaviors based upon believing in those frauds become sane. Rather, the more successful that system becomes, the more insane it actually is.

That is why nearly NOBODY who was relatively successful within that system, no matter how realistic they were, is able to be realistic enough about the most probable future for fundamentally fraudulent financial accounting systems controlling civilization. The only corrections possible are outside of the human markets, but rather will be corrections caused by the "market" of natural forces, beyond human control. Meanwhile, the human world will continue on its trajectory of being directed by the maximum human deceits and financial frauds, to continue to behave in the maximally insane ways that are possible. (Meanwhile, pointing those basic social facts out will continue to have the minimum social effect, since evidence and logical arguments will continue to just bounce off the armour-plated established systems of legalized lies, backed by legalized violence.)

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