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Fire And Brimstone: John Mauldin Edition

Tyler Durden's picture


Roughly five years ago, when we first started warning that the Fed's QE program, which we predicted will never end (five years later this is as true as ever), instead of leading to a virtuous economic cycle would result in a world where the labor force is increasingly converted from full-time workers to part-time labor, in which spending on growth capital is entirely replaced with such short-term shareholder friendly actions as dividends and buybacks, where the government is more broken than ever and where, courtesy of monetary policy, Congress can just tell the Chairman to "get to work" any time there is a crisis, and in which the record wealth disparity between the wealthiest few (0.6% control 40% of the world's wealth) and the poorest 99% (now that the middle class is on the path to extinction) will inevitably lead to a 18th century French outcome complete with guillotines, or worse, one of the more traditional financial pundits, John Maudlin, espoused the "Muddle Through" theory - in a nutshell, that all, even if at a far lowered output and standard of living, would be well, one which we (much to the chagrin of Cypriot - to start - depositors) refuted.

Some five years later, now that the prevailing mainstream media consensus has finally caught up with our "tinfoil" view, which for years was mocked by the same media, usually on an ad hominem basis, and even the Fed has realized (confirmed by the latest Jackson Hole symposium) it is in a trap as it understands it has to end the market's dependency on monetary heroin but has no idea how to do it without in the process undoing five years of central planning, we have seen some spectacular opinion flip flops take place. Which aside from the occasional headscratcher such as David Rosenberg going bull-retard (we once again wonder: just what does Ray Dalio serve in his cafeteria?) have been almost exclusively from optimistic to pessimistic, or as we call it, realistic. And as the case may be, such as with John Mauldin and his latest missive to potential clients, A Code Red World, a very deep and red shade of pessimistic.

Some extracts from the man whose Muddle Through has now become the Fumble Through and Through:

The arsonists are now running the fire brigade. Central bankers contributed to the economic crisis the world now faces. They kept interest rates too low for too long. They fixated on controlling inflation, even as they stood by and watched investment banks party in an orgy of credit. Central bankers were completely incompetent and failed to see the Great Financial Crisis coming. They couldn't spot housing bubbles, and even when the crisis had started and banks were failing, they insisted that the banks they supervised were well regulated and healthy. They failed at their job and should have been fired. Yet governments now need central banks to erode the mountain of debt by printing money and creating inflation.


Investors should ask themselves: if central bankers couldn't manage conventional monetary policy well in the good times, what makes us think that they will be able to manage unconventional monetary policies in the bad times?


And if they don't do a perfect job of winding down condition Code Red, what will be the consequences?


Economists know that there are no free lunches. Creating tons of new money and credit out of thin air is not without cost. Massively increasing the size of a central bank's balance sheet is risky and stores up extremely difficult problems for the future. Central bank policies may succeed in creating growth, or they may fail. It is too soon to call the outcome, but what is clear (at least to us) is that the experiment is unlikely to end well.


The endgame for the current crisis is not difficult to foresee; in fact, it's already underway. Central banks think they can swell the size of their balance sheet, print money to finance government deficits, and keep rates at zero with no consequences. Bernanke and other bankers think they have the foresight to reverse their unconventional policies at the right time. They've been wrong in the past, and they will get the timing wrong in the future. They will keep interest rates too low for too long and cause inflation and bubbles in real estate, stock markets, and bonds. What they are doing will destroy savers who rely on interest payments and fixed coupons from their bonds. They will also harm lenders who have lent money and will never be repaid in devalued dollars, if they are repaid at all.


We are already seeing the unintended consequences of this Great Monetary Experiment. Many emerging market stock markets have skyrocketed, only to fall back to earth at the hint of an end to Code Red policies. Junk bonds and risky commercial mortgage-backed securities are offering investors the lowest rates they have ever seen. Investors are reaching for riskier and riskier investments to get some small return. They're picking up dimes in front of a steamroller. It is fun for a while, but the end is always ugly. Older people who are relying on pension funds to pay for their retirement are getting screwed (that is a technical economic term that we will define in detail later). In normal times, retirees could buy bonds and live on the coupons. Not anymore. Government bond yields are now trading below the level of inflation, guaranteeing that any investor who holds the bonds until maturity will lose money in real terms.
We live in extraordinary times.


When investors convince themselves central bankers have their backs, they feel encouraged to bid up prices for everything, accepting more risk with less return. Excesses and bubbles are not a mere side effect. As crazy as it seems, reckless investor behavior is, in fact, the planned objective. William McChesney Martin, one of the great heads of the Federal Reserve, said the job of a central banker was to take away the punch bowl before the party gets started. Now, central bankers are spiking the punch bowl with triple sec and absinthe and egging on the revelers to jump in the pool. One day the party of low rates and money printing will come to an end, and investors will make their way home from the party in the early hours of sunlight half dressed, with hangovers and thumping headaches.


The coming upheaval will affect everyone. No one will be spared the consequences – from savers who are planning for retirement to professional traders looking for opportunities to profit in financial markets. Inflation will eat away at savings; government bonds will be destroyed as a supposedly safe asset class; and assets that benefit from inflation and money printing will do well.

Such fire and brimstone , such a dramatic shift in perception? Well, better late then never, right... But one wonders - why now?

This book will provide a roadmap and a playbook for retail savers and professional traders alike. This book will shine a light on the path ahead. Code Red will explain in plain English complicated things like zero interest rate policies (ZIRP), nominal GDP targeting, quantitative easing, money printing, and currency wars. But much more importantly, it will explain how what is in store will affect your savings and offer insights on how to protect your wealth. Code Red will be an invaluable guide for the road ahead.


Code Red will be available on Amazon on Monday, Oct. 28.

... and suddenly it all makes sense.


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Sun, 10/27/2013 - 07:45 | 4094760 GetZeeGold
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market's dependency on monetary heroin


We can stop at any time.....we just chose not to.

We're's not like we're junkies.

Sun, 10/27/2013 - 08:20 | 4094792 GMadScientist
GMadScientist's picture

So you're in this "dance til you drop" competition, and doing pretty well, 80% of the floor is emptied, only you and a few other couples, when you notice that your partner happens to actually be dead.

Do you stop dancing or just lead them more in the hopes of not even having to split the prize?

Sun, 10/27/2013 - 09:14 | 4094875 Greshams Law
Greshams Law's picture

Well, they shoot horses, don't they?

Sun, 10/27/2013 - 09:27 | 4094890 CPL
CPL's picture

Only when someone cares about the Horse.

Sun, 10/27/2013 - 09:34 | 4094897 redpill
redpill's picture

So basically everything Peter Schiff has been saying for the last decade?


"Welcome to the party, pal!"

Sun, 10/27/2013 - 09:49 | 4094923 CPL
CPL's picture


Sun, 10/27/2013 - 10:11 | 4094961 GetZeeGold
GetZeeGold's picture



Loved the "Peter Schiff was right" Hitler bunker version.

Sun, 10/27/2013 - 12:50 | 4095248 OutLookingIn
OutLookingIn's picture

So much for "Mauldin's Muddle Through Theory."

Sun, 10/27/2013 - 13:39 | 4095365 Abi Normal
Abi Normal's picture

I was talking to a "financial advisor" friend the other day.  We got into the economics a bit, but bottom line he see's a decade of "real growth" ahead, just like late 70's early 80's.  He also says w/o hesitation, banks do not carry trade, there is no increase in part time workers, no one is losing health insurance, and unfunded liabilities are not a debt in the current sense.  He also said the debt can be paid off, if I remember that part correctly.  He thinks a weak dollar is good, in that import exports imrpove.  All in all, he is definately BULLISH on the mkt and growth right now!  He thinks we can continue with QE (in other words the debt is ok), but does like the idea of term limits (keep terms as they are and serve max two terms), get rid of lobbying and special interest groups.  The last three things we agree on, other than that, zero.

I am glad he is not my financial advisor, very smart guy and all, but he is woefully ignorant as to what is going on generally economically.  That is somewhat scarey?! 

Sun, 10/27/2013 - 15:10 | 4095583 brewing
brewing's picture

it's scarey if you actually listen to financial advisors...

Sun, 10/27/2013 - 23:48 | 4096718 TwoShortPlanks
TwoShortPlanks's picture

First Rule of Bankruptcy: When faced with certain Bankruptcy and subsequent Liquidation of assets, transfer all good assets and equity into a newly created entity, and hang the creditors with the toxic assets and debt of the old.

China’s Bretton coup d'état:

Sun, 10/27/2013 - 16:45 | 4095765 SWRichmond
SWRichmond's picture

your friend sounds like a Wharton School MBA douchebag.

Sun, 10/27/2013 - 17:28 | 4095860 jbvtme
jbvtme's picture

 i read an article recently that said that 47% of the jobs done by workers will be lost to robotics in the next twenty years.  i ride the bus iong distances and talk with the young passengers who don't own cars and live three/four to an apartment. i see alternative currencies like ithaca dollars and berkshares and bartering for services in the rural areas. airbnb, flightcar, couch surfing, sluglines, craigslist ride share apartment share, used books on amazon...everywhere i look entrepreneurs are undercutting corporate america.  the industrial revolution is taking it last breaths. 

Sun, 10/27/2013 - 17:39 | 4095888 jbvtme
jbvtme's picture

also, this kind of thing will send the lizards and reptiles packing

Sun, 10/27/2013 - 18:25 | 4095991 trainhard
trainhard's picture

He is freaking clueless as most financial salespeople are. All they know is buy MF's and hold them for the long term. Not to mention a modicum of self-delusion.

Sun, 10/27/2013 - 20:26 | 4096270 Groundhog Day
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Would you please share with us where he works.  I had a meeting with a jpm rep who was so full of himself, their wasnt enough room in his office for me and his ego.  He went on and on about how the corrections don't come until 5% fed funds rate and so bonds are dangerous and stocks are the place to be for at least the 2 to 3 years.  I said 5% fed funds from here, wouldnt that have adverse effects on us debt? His reponse, deficits dont matter, they never have in the past.  The next 30 min were torture

Mon, 10/28/2013 - 16:34 | 4098893 MarsInScorpio
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Reminds me of how the dot com evangelists said that debt - and profits - didn't matter either . . .


Sun, 10/27/2013 - 19:52 | 4096194 Professor Fate
Professor Fate's picture

Always kind of liked Mauldin but he lost me with Muddle Through.  Good to see he's come back to his senses but Jeezus Christ...what deck of the Titanic are you lounging on that you can't see this fuckin' iceberg.

Fate the Magnificent
"Push the Button, Max" 

Sun, 10/27/2013 - 12:00 | 4095148 dtwn
dtwn's picture

There was a Schiff vs Mauldin debate earlier this year:


In my opinion Schiff owns Mauldin.  Now, I don't know enough about Mauldin to know if "Code Red" represents a change of opinion, but it is interesting that when even Jamie Dimon comments about the reality of the US debt


that we may be seeing more and more changes of opinion as additional public commentators realize they don't want to be on the wrong side of history (and the wrong side of a noose) when this thing unfolds.

Sun, 10/27/2013 - 13:11 | 4095298 El Tuco
El Tuco's picture

Mauldin is in the book business. Unfortunately he spouts the same shit everyone else has been saying packaged differently. This should be taken as a contrarian indicator.


Sun, 10/27/2013 - 13:33 | 4095353 noless
noless's picture

Normally I'd agree, but contrary to what at this point?

Are you saying i should take out loans and go to university of Phoenix for a degree in medical billing?

Sun, 10/27/2013 - 15:57 | 4095683 HardlyZero
HardlyZero's picture

It is a change in Mauldin's course...maybe Muddle Through with the Code RED claxon siren.

Maybe its more of the same, but John Mauldin is like PIMCO...they keep warning and keep selling.

John M. and Peter Schiff are on the same side of the arguments, only John thinks it will take longer to devolve than Peter.

Peter has believed the economy jumped off the cliff 10 years ago and is just waiting to hit bottom, so maybe Mauldin is 5 years behind Schiff on these matters.


It could take decades for this to play out...or a few hours...that is the nature of this economic monster.

Sun, 10/27/2013 - 18:18 | 4095974 Jafo
Jafo's picture

"It could take decades for this to play out...or a few hours...that is the nature of this economic monster."


You are probably far mor correct than you realise.  This party will roll on unabated for years but the moment when everyone realises that the party is over will become global within a few hours.

Sun, 10/27/2013 - 20:31 | 4096283 Crisismode
Crisismode's picture

Everybody, and I mean




in the mainstream thinks that



The Japanese are a dying race on a dying island, but they had the foresight

to NOT

invite a huge number of foreigners in as their captive workforce, like, oh say,






Japan is dying becaue they have lost the will to live, and, quite frankly, to even


They will go down as one of the best examples of decadant self-indulgent living in the history

of the planet.

And the USA is following right in their footsteps.

March, sonny-boy, March.



Sun, 10/27/2013 - 15:43 | 4095656 Anusocracy
Anusocracy's picture

Ron Paul or Harry Browne or any one of hundreds of thousands of average libertarians would have been a better choice than Peter Schiff to epitomize scorn for the system.

Not that Schiff is not okay.

Sun, 10/27/2013 - 10:52 | 4095024 0b1knob
0b1knob's picture

Actually in the movie "They Shoot Horses Don't They" didn't they find out at the end that the whole contest was fixed and they never had a chance to start with?

Sun, 10/27/2013 - 11:12 | 4095054 DanDaley
DanDaley's picture

You only win by not playing, like the lottery.

Sun, 10/27/2013 - 13:20 | 4095323 Creepy Lurker
Creepy Lurker's picture

And thermonuclear war.

Sun, 10/27/2013 - 09:30 | 4094893 TheFourthStooge-ing
TheFourthStooge-ing's picture


Do you stop dancing or just lead them more in the hopes of not even having to split the prize?

"As long as the music is playing, you’ve got to get up and dance."
Chuck Prince

Yeah, it's all good, right Chuckie?

Sun, 10/27/2013 - 10:01 | 4094940 ToNYC
ToNYC's picture

When you are the only one left standing, you win and enjoy the prize with the dead. Nice game for losers all around.

Sun, 10/27/2013 - 10:58 | 4095036 max2205
max2205's picture

No of us will be alive to trade the turn so keep long

Sun, 10/27/2013 - 10:06 | 4094952 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

That is what happens when you have a Kenyan running Amerika.

Sun, 10/27/2013 - 10:35 | 4095000 GMadScientist
GMadScientist's picture

I see quite a few more white faces in the "fucking up the world royally" column, but keep barking at the "shadow puppets", ya yappy little shitbag.

Sun, 10/27/2013 - 14:06 | 4095445 Creepy Lurker
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And when Coleman Young was first elected Mayor in Detroit, the city council was mostly white, but that's beside the point. He said Kenyan. Didn't say black or white, the point being that the guy isn't an American. It's not a good idea to let a foreign national (whether in spirit or in fact) run your country.

But then, he criticized "The One" so that automatically makes him RAAAAAYCISSSSS, right?

Sun, 10/27/2013 - 09:03 | 4094803 Stackers
Stackers's picture

John Mauldin has never been openly short term optimistic, he has simply said that if the powers at be chose to they could institute policies that would allow us to muddle through. Watch his 45 min lecture or read his book "End Game" and you will see he has always been a "realist" He is a very staunch long term optimist, like myself, and believes we have much potential if we can get past this centrally planned mess we are in.


His argument was never that we "would" or "should" muddle through ..... simply that we "could" if they chose to.


The End Game lecture. - circa 2010

Sun, 10/27/2013 - 09:22 | 4094876 Cognitive Dissonance
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I have been reading John Mauldin for well over a decade and during that time I have watched him muddle through. John, like so many 'centrists', does not form his own opinion......though he most certainly believes that he does. John's opinion is developed by the herd that follows him. His view is greatly influenced, if not actually formed by, the feedback he receives from those who PAY for his opinion. That feedback often comes in the form of decreasing or increasing membership fees.

When your email list is well over a million and you live off the selling of your opinion, it does not pay (both literally and figuratively) to venture too far off the consensus path. In short John Mauldin's opinion is crafted by his court to suit his court. His value is actually as a wordsmith, in his use of elegant prose and paragraph while explaining to the herd what the herd wants to hear.

<BTW my opinion and $795 will get you an iPhone, thus exposing the value of my opinion as well as Mauldin's.>  :)

Sun, 10/27/2013 - 09:28 | 4094891 SWRichmond
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Then Mauldin's piece is all the more noteworthy, as it means the consensus is changing significantly.  Those of us here at ZH knew, well in advance, where the road led, and I suspect many have "prepped" for the destination.  If the mainstream opinion is changing, as indicated by Mauldin's "I'm their leader, which way did they go?", then the window of opportunity for gold newbies to actually get their hands on some physical is closing, because the herd is coming.

Sun, 10/27/2013 - 09:32 | 4094896 Cognitive Dissonance
Cognitive Dissonance's picture


The herd is always right....even when it is wrong. :)

Sun, 10/27/2013 - 10:14 | 4094966 woolly mammoth
woolly mammoth's picture

That was an enlightning desciption of Mauldin CD.

Sun, 10/27/2013 - 12:21 | 4095194 Hulk
Hulk's picture

COG's been hitting em out of the park for two days now. Country living must suit him nicely !!!

Sun, 10/27/2013 - 12:24 | 4095197 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Any way the wind blows,
is fine with me.
Any way the wind blows,
it don't matter to me."

Sun, 10/27/2013 - 13:52 | 4095409 Abi Normal
Abi Normal's picture

Ain't that somethin'...such a wasted talent, in the vein of Hendrix, Elvis, Joplin, Morrison and the like.

All prognosticators, including myself, are guessing, may be an educated one, but more like throwing a dart at the board!!!

I feel a strange brew, an ill wind brewing, my friends, and for a long, long time now! Warning Will Robinson, danger, danger, danger, lies ahead!

Most of us here at ZH, know this fact, we ran off the tracks some time ago, and there is no fixing this stupid mess we are in easily.  There will be much pain and suffering, but in the end, long term, we may just get out of this hell, and be better for it.

When does the final death throws come, the death rattles are being heard now, so it is just a short time away, I give the patient 6-9 months, maybe a year, then pooof, it will make that 'giant sucking sound' sound like a gurgle!

Sun, 10/27/2013 - 09:38 | 4094903 Urban Redneck
Urban Redneck's picture

I have some cranial-rectal separation surgeries that I have been putting off for a while, and at least one of them involves someone who often forwards Mauldin's stuff...

Sun, 10/27/2013 - 11:41 | 4095110 Calmyourself
Calmyourself's picture

Good luck, the toughest operation in nature.  Mine invariably turn into Friend estrangementdectomies in short order..  Gave that one up and concentrated on the homefront..

Sun, 10/27/2013 - 12:12 | 4095183 TuesdayBen
TuesdayBen's picture

I hear Facebook offers a tool for that surgery.

Sun, 10/27/2013 - 13:18 | 4095314 El Tuco
El Tuco's picture


or it's a good contrarian indicator...DOW 20000 here we come....

Sun, 10/27/2013 - 14:13 | 4095465 Creepy Lurker
Creepy Lurker's picture

You know, that's a good thought. At least for the first lttle while, TPTB will work harder to stop the herd going in the wrong (to them) direction.

Sun, 10/27/2013 - 16:48 | 4095771 SWRichmond
SWRichmond's picture


Without a doubt, though timing is questionable and buying power of DOW is dubious going forward IMO. 

Sun, 10/27/2013 - 09:47 | 4094921 CPL
CPL's picture

It stands to reason that centrist isn't really a position when applied to a system you can only be pro or contra.  Everything in between is just marketing to pay John or someone else to provide a model and rationale to how orthodox the buy position is.  It's only justification based on the loose assumption that the system is worth anything.  John is as much part of the problem as the central banks are. 

It's at a point where it doesn't matter if one is optimistic or pessimistic about current market and business indications or actions.  The system all these objects are contained in (currency) has already self destructed and is described as 'worthless'.  Yet people are still talking about the corpse, only in past tense if you've noticed.  It's always a comparison to the past, never a deliverable guarantee of the future. 

That's an indicator of one of two things.  No one know how to do the math to project properly.  Or they are stalling and lying.

Like it or not, John has unwittingly become part of the controlled opposition to a problem created by other people.  Right now guys like Maudlin and the rest of them should be putting pen to paper to develop something new and cease screwing around with the rusted out POS everyone hopes can get one more mile out of.


Sun, 10/27/2013 - 10:13 | 4094953 Cognitive Dissonance
Cognitive Dissonance's picture

Very well articulated CPL.

John and the rest of them will never most likely not do as you suggest (unless or until forced to) because this requires that they break from the herd and seriously compromise their income stream. The herd at large does not want to hear that pain is coming and that they (the herd) are the problem. They want to be told how to profit from, or at least avoid, the pain. The CBs simply cannot do what they are doing without consent from the herd.

Courage is easy to come by until it is not.

Sun, 10/27/2013 - 10:31 | 4094994 Tinky
Tinky's picture

In my admittedly limited experience, the best of the newsletter writers was Bill Buckler, who, for a very long period of time, provided consistently clear and useful insights without falling into the trap of attempting to time markets.

I'm sorry that The Privateer is no along available, but hope that Bill and his wife are enjoying life to its fullest.

Sun, 10/27/2013 - 11:09 | 4095049 Fuh Querada
Fuh Querada's picture

Try Jim Willie's Hat Trick letter.

Sun, 10/27/2013 - 16:30 | 4095736 RafterManFMJ
RafterManFMJ's picture

Love me my Jim Willie! If he's even half right, were all going to be eating a shit sandwich, and not to long from now.

That said, his letters do get wound up and I'd not be surprised if he reports that he engaged in a running laser gunfight with Lizardarian aliens while racing along the Costa Rican coast.

Sun, 10/27/2013 - 11:54 | 4095136 CPL
CPL's picture

Even there, the income stream is losing purchasing power by the day.  Obviously some day's are worse than the next with the loon's finger stuck on the print button. 

What we all miss sometimes is explaining the purpose of PM's (gold, silver, food, hardware fixtures) and how they apply to the situation.  These things are really only to apply a gap measure to 'step over' the transition with better than nothing odds until we all figure out the simplest route to trade, transactions and some type of common value applied.

We are all making the same mistakes as last time the opportunity presented itself.  Everyone is discussing the relative value of a PM in comparison to a system that is obviously not a reflection of markets or value, or sanity.  I'm guessing you get as many of those penny millionaire newsletters as I would.  (Sign up for one and they tend to breed like rabbits.)  All of that brain power tied up attempting to extract value that doesn't exist with real effort.

The question is how to refocus or is the question that we are asking the wrong question...

Everyone that eats, breathes and squats on this planet requires a currency, scale of things just won't allow for anything less but nearly instant without a severe collapse. 

So how does the staging get set up? Is there a beta protocol other than the usual route of guns and 'liberation'.  Then the packaged and limited concept of participatory democracy.  Because let's be straight here, people invest their minds into what they believe they want to invest into.  Every time participatory democracy happens, it turns into this.  Greece, even North American bands.  Eventually the cell divides and again and again.  Then no one can agree which way is up anymore.

Something that is nearly impossible to change the underlying fundamentals on, but allows for people to save, invest, develop, extend relationships over distance.

How does the cut over mechanism and public education feature work? It would have to be simple where a 4 year old would have to grasp the entire economic system.

It would have to be based on something that we do not know the question to.  What do we all trust?

Sun, 10/27/2013 - 15:21 | 4095603 Sparkey
Sparkey's picture

"Right now guys like Maudlin and the rest of them should be putting pen to paper to develop something new and cease screwing around with the rusted out POS everyone hopes can get one more mile out of."

With a million `Paid` subscribers, I'd be trying to get as many miles as possible out of the, lovely, old bill paying, POS, who wouldn't?

Sun, 10/27/2013 - 18:35 | 4096013 Jafo
Jafo's picture

You can sit around and read John's thoughts if you like.  If you ask me it is a bit like standing around and listening to the band playing on the deck of the Titanic.  It is a pleasant diversion but sooner or later (sooner if you ask me) the water is going to be up around your knees and the music will stop.  At that point you will be facing a very different reality.

On the other hand I hope that John has been making good use of those subscription fees and royalties from his books to make his own preparations for the collapse.  Good luck to him if he has.

Sun, 10/27/2013 - 10:31 | 4094993 falak pema
falak pema's picture

...John's opinion is developed by the herd that follows him. His view is greatly influenced, if not actually formed by, the feedback he receives from those who PAY for his opinion...

Greenspan was a very good example of that syndrome and adored, during his halcyon years, to caress the client base with his godlike powers of reassurance; a druid trait which his banker clients loved like white powder addiction. His following was literally in billions around the world! 

Until his late acknowledgment of the train wreck in the making of his own concoction : irrational exuberance, and his subsequent lame duck admittance of the awesome consequences of this perpetual motion machine launched in 1987 : we all knew there was a bubble we didn't know when it would burst. I admit I got that wrong.

1987 WS blues didn't teach him sweet nothings... some people love their followers more than their own better instincts. (He was a Mises bug in his youth).

Hey Gordon Gekko you got that right! The herd stays the herd inspite of the sad sheepdog who forgets to do his job.

Sun, 10/27/2013 - 10:56 | 4095033 gjp
gjp's picture

That's a good description of one of the many ways the Upton Sinclair quote manifests " ...when his salary depends on not understanding it".

I had an email exchange with Mauldin 10 years ago where I called him out for his muddle through theory which was obvious b.s. even then and a major pet peeve of mine. How can one call for muddle through in a world so obviously devoid of moderation? Totally indefensible no matter how elegant the wordsmithing.

Sun, 10/27/2013 - 15:28 | 4095617 Sparkey
Sparkey's picture

Million subscribers! You don't like it,,, this is success man, capitalism in action,,,you jealous or what?  How many subscribers you got?

Sun, 10/27/2013 - 11:16 | 4095060 Fuh Querada
Fuh Querada's picture

Joan Maudlin's motto always appeared to me to be "never say in 5 words what you can say in 500". He's now launching a new tech newsletter for 995$ (special introductory price down from $1995) to coincide with BTFATH.

Your desperate to squeeze the last drops of juice out of the investment letter market analyst....

Sun, 10/27/2013 - 14:42 | 4095534 formadesika3
formadesika3's picture

Looks like Mauldin's trying to ride the wave of well-heeled baby-boomer retirees susceptible to anti-aging pitches, the few remaining who can afford to retire, that is. If you're looking for advice on biotech, just go to Seeking Alpha or a similar site, you'll save a ton of money reading the comments. It's a good antidote to steer away from that sector unless you just like to gamble. This newsletter by Patrick Cox is probably a reincarnation of the one he wrote sponsored by the Bill Booner collective. His simplistic advice is the kiss of death for your retirement savings.

Sun, 10/27/2013 - 21:52 | 4096484 sumo
sumo's picture

Your desperate to be relevant, unoriginal limp-wristed poseur who wishes he was a courtier in pre-revolutionary France market analyst ...

Sun, 10/27/2013 - 19:31 | 4096148 TwoHoot
TwoHoot's picture

Excellent. I too have read Mauldin for years. My conclusion is about the same as yours - he accurately reflects concensus thinking of a group the I am financially ineligibel to join. There is value in that for me.

I had a friend who eventually reached a high level in government bureaurcracy. He had a sign on the wall in front of his desk where he could see it but his visitors couldn't that said, "There they go. I must hasten after them for I am their leader".

Mauldin is like that.

Sun, 10/27/2013 - 10:08 | 4094955 dmger14
dmger14's picture

He has said we will pull through it "because we have to."  Sort of like a football team will score a touchdown when their on their own 10 yard line, 4th down, 4th qtr.  2 seconds left, down by 6 points "because they have to, therefore they will."  He knows the math but had/has blind faith.   

Sun, 10/27/2013 - 17:01 | 4095791 Errol
Errol's picture

Stackers, the reason that the Fed has embarked an unstoppable stimulus policy is that we do not "have much potential if we can get past this centrally planned mess we are in".

The entire Industrial Revolution was enabled and continued by ever-increasing extraction and use of fossil energy.  Now that the easy oil and coal have been extracted and burned, energy production will be ever-decreasing.  The world can expect uninterrupted contraction for the forseable future; but that contraction may not be evenly distributed.  The leadership of the US intends that the contraction is felt least in the US; we have made it clear that we will kill as many people as necessary to insure that the US gets the last of the economically feasible oil from the MENA. 

Nixon's cancellation of dollar convertability, Reagan's massive debt run-up, Bush's massive debt run-up, Obama's massive debt run-up, are all coping mechanisms for the reality that US oil production peaked in 1971 and WILL NEVER retrurn to that level.

We are most definitely in the End Game; there are probably $100 dollars' worth of claims on every $1 dollar's worth of productive assets in the US.  Everyone is delaying price discovery for all they are worth; no one knows how long this can continue.  You might want to take some chips off the table and rotate into productive assets, under your control.

Sun, 10/27/2013 - 07:48 | 4094763 Truthseeker2
Truthseeker2's picture

The markets are in total disarray because TPTB know:


"What Obama and NASA don’t want you to know!"


Sun, 10/27/2013 - 08:18 | 4094774 GetZeeGold
GetZeeGold's picture



Member for 4 days 1 hour


Pace yourself Amigo. If you hang around here you're gonna read some really scary crap.

That link had everything in it. I almost committed suicide. Then I decided.....screw it....let's wait for tomorrow and see what actually happens.

Are you an ACA troll too.....or did you just happen to show up at this time?

Sun, 10/27/2013 - 09:21 | 4094884 Deacon Frost
Deacon Frost's picture

True 'GotZeeGold', this site is high on the target list by the government apparatus. The idea is to interject intelligent discussion with nonsensical drivel.

Sun, 10/27/2013 - 12:49 | 4095240 lakecity55
lakecity55's picture

Yep, DF!

I have seen that on less sophisticated sites. A good discussion is going and some poster leads it astray with some weird comment or whatnot.

ZH beware!

Bath House probably would hate this site, but since he knows nothing about economics, he will never find it. Unless somebody dimes us out.

Thanks to the post about Spitznagel. I had been following his advice w/o knowing it. I am in cash and PMs, waiting to swoop in except for my Jr Miner. I have been called 2X by my broker offering special "deals," but told them nicely to bugger off. I am really glad I dumped my 401 and set up my own brokerage acct and have followed the advice posted on this site, along with my own observations.

Sun, 10/27/2013 - 13:49 | 4095404 mjcOH1
mjcOH1's picture

" "What Obama and NASA don’t want you to know!"" ---> "
Might this crop circle be telling us about an approaching celestial body (aka Planet X) from outside our Solar System?"


I think it's telling us that you can stomp a shit-load of corn flat when you're 18 and have a couple of 6 packs of Miller.

Sun, 10/27/2013 - 15:33 | 4095635 Sparkey
Sparkey's picture

"The idea is to interject intelligent discussion with nonsensical drivel."

It's working,,,Right?!

Sun, 10/27/2013 - 09:37 | 4094900 lasvegaspersona
lasvegaspersona's picture

'pace yourself amigo'

now that is both funny and kind....not something you get here at ZH very often...

Sun, 10/27/2013 - 10:25 | 4094986 smlbizman
smlbizman's picture

their are no ladies rooms at the hedge...piss standing up or dont can be a female, but you cant be a pussy.....i think thats rule number 3...

Sun, 10/27/2013 - 12:40 | 4095231 lakecity55
lakecity55's picture

Space yoursef, amigo!

Sun, 10/27/2013 - 08:18 | 4094789 Headbanger
Headbanger's picture

Wow, cool!  So the next time the aliens abduct me, I should stay on their ship right!?

Nanu Nanu!

Sun, 10/27/2013 - 09:09 | 4094868 Cast Iron Skillet
Cast Iron Skillet's picture

And don't forget your towel!

Sun, 10/27/2013 - 09:17 | 4094878 BoNeSxxx
BoNeSxxx's picture

Nibiru Bitchez!


Sun, 10/27/2013 - 12:39 | 4095226 lakecity55
lakecity55's picture

You do not need one. The last ship I was on, you shower and these air jets blow you dry. They have snuggie-type spacesuits which are real comfortable.

Bring your own food, however, maybe a few MREs, these guys eat moss and stuff.

They are also susceptible to hootch. If you give them a shot of Calvert, they will take you to Mars and show you the Pyramids.

Sun, 10/27/2013 - 08:26 | 4094801 Wahooo
Wahooo's picture

Okay, here's how it works:

Knowing full well that the world will end tomorrow, you BUY THE FUCKING DIP!

Sun, 10/27/2013 - 08:32 | 4094809 Bearwagon
Bearwagon's picture

Wrong! That is very oldschool. Nowadays you BUY THE FUCKING ALL TIME HIGH!  ;-)

Sun, 10/27/2013 - 09:18 | 4094881 spanish inquisition
spanish inquisition's picture

Actually at this point in time, you are both right!

Sun, 10/27/2013 - 09:02 | 4094856 muleskinner
muleskinner's picture

It's a planet from hell.

It passed over Russia last year too.

Broke windows, shook up the place.

We're all gonna die.

Sun, 10/27/2013 - 09:26 | 4094888 ISEEIT
ISEEIT's picture

You kid's crack me up!

Sun, 10/27/2013 - 12:07 | 4095169 CPL
CPL's picture

Rocksteady!  Rest easy Rasta.  Soon come.

Sun, 10/27/2013 - 12:36 | 4095216 lakecity55
lakecity55's picture

Too many amateur astronomers for this to be a secret. You have watched too much sy fy channel.



Sun, 10/27/2013 - 07:48 | 4094765 Nobody
Nobody's picture

The answer to all things:

Sun, 10/27/2013 - 08:30 | 4094805 I am Jobe
I am Jobe's picture

you forgot Apple and GOOGLE

Sun, 10/27/2013 - 07:56 | 4094771 Disenchanted
Disenchanted's picture

So he's dropped the "muddling through" theme?

Sun, 10/27/2013 - 08:10 | 4094783 Mike in GA
Mike in GA's picture

A man's got to sell books, you know.

Sun, 10/27/2013 - 08:28 | 4094802 Running On Bing...
Running On Bingo Fuel's picture

He knew it all along, ya know. Kind of like a Reggie, very forward thinking and always right.

Sun, 10/27/2013 - 21:46 | 4096462 OS2010
OS2010's picture

Double points for mentioning Reggie!  ;)

Sun, 10/27/2013 - 08:32 | 4094808 Urban Redneck
Urban Redneck's picture

Other than in John's mind- "when or where have the arsonists not been in charge of the fire brigade?"

And how did I miss the "great putsch of the honest central bankers" that Mr. Obama must have executed for such a statement to even hold water?

Sun, 10/27/2013 - 11:24 | 4095077 Element
Element's picture

At least he didn't go back to the new-normal, we may be progressing ... or is that liberalizing? ... I forget ... anyway, my popcorn's stale.

Sun, 10/27/2013 - 08:09 | 4094779 greatbeard
greatbeard's picture

Well Mauldin suddenly "gets it", even if it's to sell a book.  Mauldin's  been on my Fuck Him list for a long time and  it'll take more than marketing his new paperback garbage to redeem himself.  Name dropping shit stick.

Sun, 10/27/2013 - 08:25 | 4094800 GetZeeGold
GetZeeGold's picture



Would it be overly critical for me to point out you didn't work an expletive into your first sentence?

Sun, 10/27/2013 - 09:04 | 4094859 greatbeard
greatbeard's picture

>> you didn't work an expletive into your first sentence?

Brother, it is Sunday, the day of our Lord and Savior.

Sun, 10/27/2013 - 09:08 | 4094865 GetZeeGold
GetZeeGold's picture



Go with God my son.

Sun, 10/27/2013 - 10:39 | 4094991 smlbizman
smlbizman's picture

thee little known 11th commandment.....thou shall not curse upon the earth until the second senetenceth.....on theeth day of the nfl...

Sun, 10/27/2013 - 10:48 | 4095018 eddiebe
eddiebe's picture

Mauldin is either an idiot or a shill for the bankster elite. People that think the central bankers don't know exactly what they are doing are deluded and led astray.

Sun, 10/27/2013 - 11:34 | 4095091 Element
Element's picture

He writes on the risque side of mainstream views so that when things go sour the media will talk to him, and he'll get a pop of good-folk signing up for advice and his letters, sorry, miss-ives.

Sun, 10/27/2013 - 08:11 | 4094784 Dr.Engineer
Dr.Engineer's picture

I have respect for Mauldin.  He has always spoken about the worst that could happen but was an optimist so he didn't think it would happen.  If that balanced optimism has faded then the SHTF is around the corner.

I'm also going to amazon to buy the book.

-1 me if you want but I like to read all the views and piece together my own version of the future.

Keep stacking bro's

Sun, 10/27/2013 - 08:22 | 4094795 GMadScientist
GMadScientist's picture

+1 for being a reader

Sun, 10/27/2013 - 08:12 | 4094786 GrinandBearit
GrinandBearit's picture

IMO, QE to infinity will reach levels of absurdity... $1 trillion a year will eventually become $5 trillion, then $10 trillion, then $25 trillion.  Wash, rinse and repeat... a perpetual can kick.

The final US financial/economic black swan will come from something that happens outside the US. 


Sun, 10/27/2013 - 08:21 | 4094794 Headbanger
Headbanger's picture

Like Obama?

Sun, 10/27/2013 - 08:47 | 4094831 GetZeeGold
GetZeeGold's picture



That cat can sure spend money. Not too many years ago he called it unpatriotic. But now it's not.


No...I don't know why that is.

Sun, 10/27/2013 - 09:07 | 4094862 CrimsonAvenger
CrimsonAvenger's picture

It's only unpatriotic when someone else is holding the checkbook.

Sun, 10/27/2013 - 08:19 | 4094790 Notarocketscientist
Notarocketscientist's picture

See the Money Honey - she looks like she's just come off a meth/coek bender weekend shacked up with Cramer and Kudlow:


Sun, 10/27/2013 - 08:24 | 4094798 GMadScientist
GMadScientist's picture

Holy shnikes batman, I thought she was gonna offer to blow him for a rock.

Sun, 10/27/2013 - 09:43 | 4094916 Hang Em High
Hang Em High's picture

She does pretty much look like a crack ho.........

Sun, 10/27/2013 - 08:31 | 4094806 Bearwagon
Bearwagon's picture

So, if I get this right, his salary no longer depends on not understanding, which is why he now is finally able to understand what has been clear all along. Right?

Sun, 10/27/2013 - 08:38 | 4094816 sbenard
sbenard's picture

This is not really something new for Mauldin. He has seen this coming for years. But he has held out hopes that the politicians would come to their senses. They haven't.

I remember reading one of Mauldin's books about five years ago. It was called Bulls-Eye Investing, or something similar. The last sentence of the book was this:

"And buy GOLD!"

Mauldin's last book, which I borrowed from the library about a year ago, was called Endgame. It is about the "debt supercycle" and that it is coming to an end. He had all sorts of warnings in the book. He even gave away several dozen copies and did a free seminar for the politicos. Most didn't listen. A few, like Sen. Mike Lee, did.

I plan to read Code Red, and I am going to request that the local library acquire some copies also.

Sun, 10/27/2013 - 08:42 | 4094823 Burticus
Burticus's picture

Investors in stocks may be getting screwd the worst.  Sure, they can sell their stocks at a nominal profit, measured in FeRNs.  However, the buying power of those FeRNs has been reduced by central bank "money" "printing", so the profits in real buying power may be small or nil.  But, the most sinister part is that the investor must then pay income tax on the entire nominal gain, which means he could have a real loss on the transaction, measured by real buying power of the net FeRNs he gets to keep after tax.  Whichever way the hapless muppets bend, the central bankers have a woody waiting.

Sun, 10/27/2013 - 09:02 | 4094854 greatbeard
greatbeard's picture

>> Investors in stocks may be getting screwd the worst.

Actually it is gold investors who are getting screwed the worst, according to your thesis, due to it's higher tax bracket.

Sun, 10/27/2013 - 09:06 | 4094860 GetZeeGold
GetZeeGold's picture



Since when did hippies hate real money so nuch?


You don't buy gold to make money. You buy gold because you have money.

Sun, 10/27/2013 - 09:13 | 4094869 falak pema
falak pema's picture

now I know why I don't have gold rings on every any finger.

Sun, 10/27/2013 - 11:13 | 4095057 greatbeard
greatbeard's picture

>> Since when did hippies hate real money so nuch?

You are onto something when it comes to my affinity for the old hippy days but you couldn't be more off base on my finances.

I read an interesting article that laid it out pretty well on how difficult it is to protect yourself  financially with gold, primarily to do with it's special taxation classification.  Factor in actual inflation, the tax implications, plus the fact that the enemies of gold are able to suppress the price with our tax dollars supporting the suppressors, and the gold holders are taking it in the poop chute.  Stating simple facts is not being negative on gold.

Sun, 10/27/2013 - 12:30 | 4095207 Tegrat
Tegrat's picture

Let's clear this up. With 2 Scenarios (there are more but for now lets see):


1) Put all your fiat in stocks, bonds, cash and mattress: $50,000 + 10%/year for 5 years, value after reset: $0ameros

2) Put all your money and valuables (PMs, solar, chickens, food) $50,000 - 10% year for 5 years: 25oz * $40,000ameros: $800,000ameros. Now give the government 50% assuming you haven't lost  your gold in an accident: $400,000ameros.


I am using hypothetical numbers but would you rather have $20,000-$400,000ameros post tax or $0?



Sun, 10/27/2013 - 13:27 | 4095334 greatbeard
greatbeard's picture

You make assumptions that can't be predicted in order to sell your case.  If stocks appreciate 100% and gold appreciates 100%, after the dust settles, the stock folks come out ahead, assuming holding for one year.  Period, end of story.

Sun, 10/27/2013 - 14:36 | 4095522 Herodotus
Herodotus's picture

Nobody sends you an IRS form when you sell gold.

Sun, 10/27/2013 - 08:43 | 4094825 farmboy
farmboy's picture

I have never seen Mauldin with an original thought in all these years. Why tell again the obvious?

Sun, 10/27/2013 - 08:52 | 4094839 iLiquid
iLiquid's picture

The arsonists are now running the fire brigade.

And you thought Fahrenheit 451 was fiction?

Sun, 10/27/2013 - 09:09 | 4094867 falak pema
falak pema's picture

A double role for Julie Christie who was very much flesh and blood.

Sun, 10/27/2013 - 11:45 | 4095119 Milestones
Milestones's picture

Because of some oddity in  this comment system, if you you use script wording in the first sentence WITHOUT quotation marks you will get no comments. 

I was so advised a few years ago and thus far it seems to be correct.               Milestones

Sun, 10/27/2013 - 12:28 | 4095203 TuesdayBen
TuesdayBen's picture

"The arsonists are now running the fire brigade".

And you thought Fahrenheit 451 was fiction?

Sun, 10/27/2013 - 08:53 | 4094840 TahoeBilly2012
TahoeBilly2012's picture

Mauldin, ZH, Sprott, none of these outlets ever float the concept that all this debt might well be a plan. It doesn't really serve us to try to inform people of the dire future when the future has likely been mapped out to saturate the world with debt and legal ownership by the elite, force as much spy control as possible, then implode it and bring in their "new system". 

Why do these outlets continue to suggest this is all just a big wealth grab gone bad for the elite?

Sun, 10/27/2013 - 16:14 | 4095713 tenpanhandle
tenpanhandle's picture

Many articles and comments on ZH have put forth that "TSHTF" is no accident waiting to happen but an actual game plan.

Sun, 10/27/2013 - 08:56 | 4094844 Herdee
Herdee's picture

Many of my fellow currency traders laugh at me for buying gold and silver stocks here in Canada and for buying gold and silver coins as well as bullion.

I just look at it as insurance because mining stocks for example have been beaten down to levels we haven't seen for many years.

Desperation at slamming gold and silver into the dirt is an attempt by a group of crooked Central Planners similar to  a "Politburo" is a last ditch effort at trying to establish faith in a reserve currency that is being debased at an exponential rate.

When I see China and India taking the entire gold production of the world it concerns me because investors have lost trust in the U.S. world reserve currency.

The U.S. Dollar is backed by "the good faith and trust in government"

Who in hell trusts the goddamn bums in any government today?

Sun, 10/27/2013 - 10:00 | 4094938 Deacon Frost
Deacon Frost's picture

'Journalist Proposes US-Canada Merger' = Bad Idea 

Sun, 10/27/2013 - 12:18 | 4095182 lakecity55
lakecity55's picture

I have a great jr silver stock from vancouver I am hanging on to; and I collect wildlife Ag coins and Au from your mint up there. Keep Stackin'!


Here is a great 3D Hologram coin. I am not advertising for the vendor, they just had the info on it. In the past, I was opposed to colored coins. Once I saw the detail on this one I could not resist. The Australians have some special color coins too, all Ag, which I have collected.

Carry on up there.

Sun, 10/27/2013 - 15:30 | 4095627 Seeking Aphids
Seeking Aphids's picture

No one with any awareness of the current economic/political reality in the US has trust in the ability of the US to repay its massive debt ...the $US is a pledge to do so and, as such, is an untenable one. Only by inflating away the debt and debasing the $ can this pledge be met in the short term (payment of interest)....long term the debt cannot be repaid even with currency debasement if spending continues at current levels. It is entirely rational, given this reality, to put one's trust in real assets like gold/silver, imho. The US is resiliant, however; it may be that the $US will remain as a reserve currency for a while yet....doubtful though, that it will retain anything like its former value and trust level.....


Sun, 10/27/2013 - 09:00 | 4094849 MFLTucson
MFLTucson's picture

Isn't this what Jim Rogers has been saying for the past 2 years?  Yes,  excatly and he has recomended Farm Land, food, raw materials and commodities along with Gold!

Sun, 10/27/2013 - 08:58 | 4094851 lasvegaspersona
lasvegaspersona's picture

I wonder if John will discuss the role of gold bullion in future portfolios.

Sun, 10/27/2013 - 09:00 | 4094853 paint it red ca...
paint it red call it hell's picture

"Central bankers were completely incompetent"

bankers took a page from the politicians, no incompetence, plausible deny-ability.

Sun, 10/27/2013 - 09:35 | 4094855 Escapeclaws
Escapeclaws's picture

The following by Chris Hedges is the best clarification of the worsening plight of the non-rich (ie, the middle and lower classes). It has to do with class struggle or class war, eventually. CH seems to have given up on *not* having a revolution in view of the only two choices that remain: revolution or submission to brutal tyranny. He's a regular Thomas Paine in what follows.

I have to admit that I became disenchanted with CH due to his being pro-abortion, which disqualifies him to take the moral highground. I also oppose violence and I imagine CH does as well, except for violence against the most defenceless, the unborn. Thus, I'm not quite sure how he thinks a revolution can occur. Nevertheless, his skill as a writer makes for a real kick-butt rant.

Sun, 10/27/2013 - 10:21 | 4094977 spanish inquisition
spanish inquisition's picture

When industry pollutes or legislation legalizes the pollution resulting in a toxic enviroment, there is an increase in normally healthy fetuses being aborted. Where is the outrage and calls for murder charges against those responsible. No, the call is to villify those that made a direct choice to alter their reality, rather than those who knowingly made the same choice indirecty, but are hiding behind a profit statement or a flag and the greater good. Protests should be outside of nuclear plants and calling legislators to task on pollution, more lives would be saved than harrassing women outside of clinics.

Sun, 10/27/2013 - 12:34 | 4095205 Escapeclaws
Escapeclaws's picture

Even the Pope has sympathy for women trapped in the tragedy of abortion. One could argue that they are victims of propaganda and a specific agenda to destroy families by attacking the family members the least able to defend themselves. However, despite your attempt to sanitize your concscience by refering to "aborting a fetus", who are you to decide who gets to live and who doesn't? Perhaps you are a simple materialist who simply regards an unborn human as a mere collection of cells. You have to be fully committed to this nihilistic point of view to support aborton.

How many women wish tha they had aborted one or more of their living children? Or , put another way, how many children have mothers who regret that they did not abort them? I would guess far fewer children than the number of "fetuses" have been aborted.

Your nuclear plant argument does not justify the 60 million abortions in the. US since Roe v Wade nor the hundreds of millions around the world.

Sun, 10/27/2013 - 13:26 | 4095332 spanish inquisition
spanish inquisition's picture

I was pointing out the hippocracy of the antiabortion movement to be pro choice about what they are antiabortion about. I am stating that you are not fully committed to your position, which was reinforced by your response about acknowledging spontaneaous abortions due to man made pollution are insignificant and a sanitization argument. I believe women get to make choices, for some it will be a good decision and others a bad one. They don't need you to tell them they are a victim.

Sun, 10/27/2013 - 14:50 | 4095540 Escapeclaws
Escapeclaws's picture

I think the reason I reacted to your post as I did was due to your use of the word "abort" in your first post, when the correct word would be "miscarry". This led to me understanding you to be saying that women choose to abort when they learn they may be carrying a damaged child. What you meant was a spontaneous miscarriage. I do not condemn women, only those people--male or female--who promote and "believe in" this evil, though I even the most diehard will change their opinion.

Sun, 10/27/2013 - 11:19 | 4095068 Oldwood
Oldwood's picture

The idealistic notion that the tyranny of the majority through pure democracy is any more beneficial to society than the tryanny of the few is absurd. Every constructed by man "system" is destined to corruption. Rather than pushing for any government to dole out freedoms through the New Deal or anything else, we have to accept that freedom is an individual thing we must each pursue and defend, and there will be those who would ask us to empower them to seek justice in our name, be it Marx or Bush, who would ultimately be willing to sacrifice us all to perpetuate their vision. Hedges grew up seeing the evil side of entrenched power and seems oblivious to the horrors that would await us at the hands of His visionaries.

Sun, 10/27/2013 - 09:05 | 4094858 falak pema
falak pema's picture

OT : The changing face of US Corporations and how they raise money.

In the face of the ongoing herd thinning of middle class america and the oligarchy freeze of WS asset markets manipulated by CB QE -ZIRP plays it is interesting to note how US corporates are now changing their shell structures towards new corporate vehicles : the Distorporation as explained here by the Economist:

Unless I've missed something from previous posts, ZH should present  a paper on how it views this trend in the great scheme of things. 

Sun, 10/27/2013 - 14:16 | 4094930 Urban Redneck
Urban Redneck's picture

Hopefully ZH can do a better job than the narrow minded troglodytes of the Dismal Scientist. MLPs are the "last mile" of the global fiber optic Tax Avoidance network. They seek to reunite capital with its "proper" owner (since the art of indefinite tax-deferral was perfected a long time ago). I think their focus of MLPs in the PE industry leads to a narrow minded conclusion about the need to raise capital in a world of cash-packed captive subsidiaries, and an unfocused ranting about the lack of muppet rights when muppets aren't the primary consumer of MLPs, except when executives are desperate to raise capital or desparate to find the "nothing to declare" exit from the Customs hall, which is a legitimate concern.

Sun, 10/27/2013 - 09:08 | 4094866 Brett Merkey
Brett Merkey's picture



I read the Mauldin site and newsletters and always come away a bit more educated. I read the intro to his new book and the evolution of his thinking on the dangers of current governing economic policies is clear. I'm sure that was his intent.

As the travesties and crimes of present practices escalate, all of us should evolve our thinking accordingly.

Here is another trend to cogitate: pension plans are claiming they "made mistakes" in payouts and are now handing huge bills (with interest amounting to 50% of the claim) to retirees. "Claw back" was never meant for Wall St. anyway...

Pensions ask retirees to pay back tens of thousands





Sun, 10/27/2013 - 09:13 | 4094873 MyBrothersKeeper
MyBrothersKeeper's picture

I like John a good bit, but like many, his convictions do sway toward whatever book he is pushing.  If you get on his email list you will see this.  My issue with John is he is failing to see how one thing impacts another.  For example, he changes his stance on QE...which is fine, but he recently went on a diatribe blasting Ted Cruz saying how much we needed healthcare reform based upon his conversation with a well known doctor and that we should embrace Obamacare.  In government, a bad solution is better than no solution because there is no fiscal accountability.  In the private sector, a bad solution is worse than no solution because a bad solution doesn't fix the issue and a lot of people lose lots of money. The failure on the left is they don't see why QE hasn't really worked without looking at the obvious facts that other governmental intervention has stalled the economy (Obammacare, lack of any real energy policy except pandering to enviuronmentalists, bank and corporate regulation that supports monopolies, lack of tax code reform etc etc etc).  As someone said last week, "you can't expect people that create a problem to be the solution to the problem".

Healthcare can be reformed with governments help as facilitator of competition.  All that would require of them is changing some basic laws that would be pro competition and transparency.  There is no need for them to have any involvement beyond that. Specifically, they should unwind the way healthcare is bundled, get rid of the convoluted coding structure for medical procedures that allows insurance companies to bamboozle the system etc etc.  It's not rocket science.  For immigration, put one question on the ballot for all Americans: "should we end illegal immigration"?....or just hold an open vote in Congress.  In either case if the answer is yes the solution is relatively simple:  Take away the incentive to come here illegally: not allowed to work (except seasonal migrants), not allowed to obtain housing, not allowed to drive, not allowed to get any public assistance.  Fine any business owner that alows any of the activity on a scaling increase.  They won't be coming back if this is done.  For those already here:  Give them the option to immediately enroll in a legal citizenship program (something that should be simpler and speedier) or go home.

They always claim they are fixing point is govt has created most of the issues and Mauldin or anyone who can't see that will always be late to the reality of the situation.

Sun, 10/27/2013 - 09:14 | 4094874 topspinslicer
topspinslicer's picture

I keep hearing the Fed has itself boxed into a corner but if indeed we are its pawns then the double headed monster that is the Fed and Big Brother should be able to at least buy itself some time with further massive tax increases and of course the juicy sharing of the retirement funds -- I have not crunched the numbers but would think this to be the case -- of course shrinking returns from that strategy after a certain amount of time

Sun, 10/27/2013 - 09:26 | 4094889 BadDog
BadDog's picture

Self serving promoter who likes to talk about himself and his jet setting friends.  Not on my reading list.

Sun, 10/27/2013 - 09:38 | 4094904 1stepcloser
1stepcloser's picture

Anyone have directions to James Franco's house, I have a party to Crash

Sun, 10/27/2013 - 10:09 | 4094959 aerojet
aerojet's picture

Regardless of the current monetary policy situation, there was no way so many senior-citizens were all going to live off of bond interest.  Our biggest problem is not the money printing, it is the inverted pyramid of retirees vs. working age people.  

The way out is simple--we have to screw over every single retired person fully, completely, and remorselessly.  The Chinese did this a decade or two ago and kicked off their economic boom.  Not that China is a good example of anything.  You think we have it bad?  China is always just a couple of meals away from a civil war at all times.

Sun, 10/27/2013 - 11:32 | 4095089 Oldwood
Oldwood's picture

Seniors were not supposed to live off of the interest on their saving but the savings themselves. The drive for interest has been to offset the devaluation of their savings by fed policy that deliberately targets a 2% minimum inflation, which we know is almost always exceeded, especially in the ranks of the goods of neccessity, like healthcare. Given the rug has been pulled from under most seniors and government's undying goal is universal dependency, you are corrrect in assuming we old folk will need to be "done away with" at some point, as we are quickly becoming unsustainable. The fact that so many have held onto our jobs far longer than economists had predicted is also putting pressures where they most dislike them. As is usual, our leaders have changed the rules without a full anticipation of the unintended consequences. That is giving them the benefit of the doubt, of which I have many.

Sun, 10/27/2013 - 13:51 | 4095410 moneybots
moneybots's picture

"As is usual, our leaders have changed the rules without a full anticipation of the unintended consequences."


They don't care about the unintended consequences.  If they did, they wouldn't be doing what they are doing.

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