Guest Post: 10 Steps Closer To Economic Armageddon

Tyler Durden's picture




 

Draghi introduced still-more-easing into Europe this morning as his surprise cut created turmoil in markets. What this means today, tomorrow, or next week is anyone's guess. What it means in a larger context is not...

 

Via Monty Pelerin's World blog,

1. Europe is not in good shape. Anyone who believed they were, should be disabused of such notions.

 

2. The forcing down of interest rates once again further exacerbates the longer-term mis-allocation of resources. Such actions may buy time, but only at the cost of greater problems down the road.

 

3. Macro-economics is failed witchcraft which should be apparent to anyone paying attention. Yet it will continue to be used to justify “remedial” actions out of desperation.

 

4. Governments around the world have only this hammer (liquidity/stimulus). They will hammer away even though that cannot solve the problem(s).

 

5. Liquidity and stimulus will not end in the US or Europe until markets end it. The market ending will be either an implosion or a crack-up boom. Either is possible at this stage.

 

6. Governments are in full pretend mode. They have no control over the situation other than to fool people into believing that things are getting better.

 

7. The policies employed by governments ensure the destruction of economies and themselves. Governments spiral downward toward defaults and bankruptcy that will take economies with them.

 

8. Currencies are being destroyed in terms of purchasing power.

 

9. Nothing is being done to correct economic problems. Politics has deemed true remedies too severe. They are off the table, replaced by extend and pretend actions.

 

10. The shelf-life of this government fraud is limited. Economic Armageddon is coming.

The frustrations of watching this play out are huge. So too is the knowledge that this entire scheme jeopardizes more than living standards and economies. It threatens the very future and quality of civilizations themselves.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 11/07/2013 - 16:46 | 4132344 kaiserhoff
kaiserhoff's picture

I thought the ZH crowd was always in a 12 step program;}

Thu, 11/07/2013 - 16:48 | 4132356 NotApplicable
NotApplicable's picture

ZIRP4EVA!!!!

 

Thu, 11/07/2013 - 16:49 | 4132362 Jack's Digestib...
Jack's Digestible Ideas's picture

Of all the articles on ZH, this is certainly one of them.

Thu, 11/07/2013 - 16:54 | 4132373 kaiserhoff
kaiserhoff's picture

ZH has done it before, and now they have done it again.

Thu, 11/07/2013 - 17:08 | 4132423 redpill
redpill's picture

All of these things have been true for years now, what no one seems to know is how long it will last.

Thu, 11/07/2013 - 17:10 | 4132430 Dareconomics
Dareconomics's picture

The € is set for some appreciation, and that will certainly bring the endgame closer.  

http://dareconomics.wordpress.com/2013/11/07/around-the-globe-11-07-2013/

Thu, 11/07/2013 - 19:03 | 4132840 TBT or not TBT
TBT or not TBT's picture

Is that why Draghi is going ahead with ZEURP?    (Then QEuro4EVA not long after?)

Thu, 11/07/2013 - 17:11 | 4132434 Town Crier
Town Crier's picture

This is the first I've heard about a possible "crack-up boom."  What's that?

Thu, 11/07/2013 - 17:14 | 4132447 stant
stant's picture

geting out of gov bonds into stawks ala europe

Thu, 11/07/2013 - 17:19 | 4132465 ZerOhead
ZerOhead's picture

Or getting out of fiascos generally and into anything that's real and preferably either golden or edible.

Let the rest of the morons take FaceBook and Twitter stock to the moon...

Thu, 11/07/2013 - 17:36 | 4132539 DaveyJones
DaveyJones's picture

Economic Armageddon

I'll do anything, just don't make me watch a Bruce Willis movie

Thu, 11/07/2013 - 17:55 | 4132630 James_Cole
James_Cole's picture

Economic armageddon? AKA it's possible some worthless bonds, insolvent banks and useless companies are one step closer to the shitter. OMG the horror!!

Thu, 11/07/2013 - 18:12 | 4132691 willwork4food
willwork4food's picture

Would you rather have Segall? Whats wrong with Bruce??

Thu, 11/07/2013 - 21:05 | 4133340 Things that go bump
Things that go bump's picture

Getting long in the tooth.

Thu, 11/07/2013 - 22:04 | 4133526 DanDaley
DanDaley's picture

As if you and I aren't, eh Gene?

Thu, 11/07/2013 - 17:33 | 4132519 MarsInScorpio
MarsInScorpio's picture

TownCrier

 

As opposed to an im-plosion, it is an ex-plosion.

 

Not trying to be cattty (meooooww), but that is on the level of saying "It will either rain tomorrow, or it will be dry."

 

Either way, you can claim your prediction was on the mark.

 

In fact, most of the points and predictions of this article are of that nature.

 

I gave it a 5 for truth, but a 1 for creativity. There is nothing new in it.

-30-

Thu, 11/07/2013 - 18:40 | 4132774 Herd Redirectio...
Herd Redirection Committee's picture

Summarized:  The S&P keeps going up, not because of profits, but because of currency devaluation.

Thu, 11/07/2013 - 20:57 | 4133307 Uber Vandal
Uber Vandal's picture

Refer to this chart of the Zimbabwe stock market in 2007 in the link below:

https://mises.org/daily/2532

(hint, it was up 12,000% in 12 months)

Thu, 11/07/2013 - 17:32 | 4132518 Ghordius
Ghordius's picture

the craziest part of an unsound monetary system is that it hinders and degrades the process of economic calculation

which degrades the process of financial calculation

and both lead to malinvestment, which degrades the quality and quantity of the real economic output

which then degrades the national and international commonwealth

Thu, 11/07/2013 - 21:40 | 4133447 TBT or not TBT
TBT or not TBT's picture

....which to the Dark Side leads. /Yoda

Thu, 11/07/2013 - 17:43 | 4132569 1100-TACTICAL-12
1100-TACTICAL-12's picture

It will be soon.. I know because I've decided it could take yrs, so I'm headed back out amongst'em to get's me some fiatscos. Been hunkerd down getting shit ready for the last few yrs. so while I'm gone away from home the next few months WAMMO. I'll try to send ya'll reports as I battle my way back to FEMA Region 6. Wish me luck..

Thu, 11/07/2013 - 17:52 | 4132623 viahj
viahj's picture

i feel you, everytime i travel i am anxious that SWHTF while i'm away from my property, peeps and preps.  i always take a travel kit.  is it a phobia or reality induced reason?

Thu, 11/07/2013 - 17:19 | 4132468 Liquid Courage
Liquid Courage's picture

+1 Groucho?

Thu, 11/07/2013 - 17:20 | 4132478 farragut
farragut's picture

"I used to read ZH articles. I still do, but I used to also."

- Apologies to Mitch Hedberg, RIP...  :)

Thu, 11/07/2013 - 19:02 | 4132837 James-Morrison
James-Morrison's picture

Awesome.  Doing two things at the same time!

Thu, 11/07/2013 - 18:35 | 4132755 XenoFrog
XenoFrog's picture

One day at a time, my friend.

Thu, 11/07/2013 - 19:00 | 4132829 kaiserhoff
kaiserhoff's picture

Oh, I don't drink anymore.

But I don't drink any less either.

Thu, 11/07/2013 - 16:48 | 4132355 Overfed
Overfed's picture

Well, fuck. Let's just get it on already!

Thu, 11/07/2013 - 16:58 | 4132387 El Vaquero
El Vaquero's picture

No, lets wait a month.  I need to be able to buy gas for my elk hunt.  After that, I'm good to go. 

Thu, 11/07/2013 - 17:06 | 4132407 Manthong
Manthong's picture

aw man, isn't gassing those poor elk against the law or something?

.. and I hope at least the agents are binary.

Thu, 11/07/2013 - 17:06 | 4132419 El Vaquero
El Vaquero's picture

Sarin makes them taste better.  Just don't tell anybody.  It's a family secret. 

Thu, 11/07/2013 - 17:11 | 4132422 ZerOhead
ZerOhead's picture

Personally I would prefer being wrong for another 5 years living in a quasi-functional yet clearly fictious economy than have this sucker go down tomorrow and survive off of roadkill and grubs.

But that's just my preference for something resembling civilization talking...

Thu, 11/07/2013 - 17:18 | 4132466 El Vaquero
El Vaquero's picture

In all seriousness, I would rather just get it over with, like pulling a bandaid off quickly or having the nurse just pop the needle in my arm rather than sticking it in slowly.  I know that there are hard times ahead and I know that I can never be truly ready for them.  I would also prefer it to go kaput so quickly that we don't have time to agitate the rest of the world into a nuclear war.  I have a chance against zombie sheep and hunger.  I do not have a chance against 500kt of melt your face off, then shit fallout all over the place. 

Thu, 11/07/2013 - 17:38 | 4132532 ZerOhead
ZerOhead's picture

I can fully appreciate your sentiments... and a quick collapse could certainly preempt the chance of a global war being part of the inevitable Obama 'solution'. It's just that when complexity finally collapses you are going to be living in a totally different world that literally no-one will be prepared for. Think no food, no meds, and precious little human kindness ala 'USA > Haiti'.

And to TPTB... just try finding JP-4 for your private jets you rotten fuckers!

Thu, 11/07/2013 - 17:41 | 4132560 MarsInScorpio
MarsInScorpio's picture

ZerOHead:

 

TPTB will see themselves reenacting the fate of the aristocrats in the French Revolution, when the everyday people raided the jail and exacted "street justice" to them, and their unborn offspring.

-30-

Thu, 11/07/2013 - 18:08 | 4132676 MeBizarro
MeBizarro's picture

Too bad what you are describing never actually happened during the French Revolution and what you are actually talking about is the 'September massacres' when the French mob killed everybody and anybody 3 Paris prisons in Sept. 1792. 

 

Thu, 11/07/2013 - 18:36 | 4132758 ZerOhead
ZerOhead's picture

Potato potaaaato...

Thu, 11/07/2013 - 18:11 | 4132689 ZerOhead
ZerOhead's picture

Jet aircraft were largely unavailable in the late 18th century... this proved to be a big problem for the guillotine crowd...

Thu, 11/07/2013 - 21:18 | 4133389 Things that go bump
Things that go bump's picture

Still a lot of the guillotine fodder escaped to England where they survived to rub the noses of the English lower classes in their specialness.

Thu, 11/07/2013 - 18:07 | 4132675 El Vaquero
El Vaquero's picture

Food can (and is) grown around me and where I live, I have a ton of seed that I've been saving, and I have guns and ammo.  I can fish less than 200 yards from my back porch, and there is plenty of waterfoul and other critters around.  (I'd give it 5 years or less before the feral pigs make it up here.)  I regularly cook with wood because I like it and have a renewable supply of wood.  There are more people around me than I would prefer, but I also have access to water without power.  What I don't have is as many people around me as there on the West or East coasts.  I don't think that nightmare even begins to describe what the coasts will look like when the petrodollar quits buying all of that foreign oli. 

 

Problem is, I've seen what modern society has become, and I know where it must logically progress to given the finite resources on the planet, and, like you, it scares the hell out of me.  But, I also see the potential for a breath of fresh air on the other side of it. 

 

No matter what you want, you do have to agree that we live in interesting times. 

Thu, 11/07/2013 - 18:37 | 4132744 ZerOhead
ZerOhead's picture

Interesting times indeed... and since we have been condemned to live in them we may as well learn enjoy them as best we can.

I went full retard a couple of years ago and picked up a couple hundred acres with water (including potential for water power generation), old growth trees and lots of organic soils. The ponds are great for swimming and fishing but most importantly it is a wonderful place to spend time. The bugs can be awful at times but the bears pretty much leave me alone. I am now cultivating blueberries on several acres and have a one acre (or so) garden prepared with soils that are so dark and rich that you don't require fertilizers.

I don't honestly know how  everything is going to turn out in the end... I just know I sleep a lot better since I bought Bughaven.

Thu, 11/07/2013 - 18:39 | 4132767 El Vaquero
El Vaquero's picture

That's not full retard.  I would have enjoyed that land even back in the 90s when things were looking a lot more upbeat and I was a lot more ignorant. 

Thu, 11/07/2013 - 18:52 | 4132810 ZerOhead
ZerOhead's picture

The simple things are often the best things in life... things like good friends and beautiful sunsets on the pond.

Now I just have to find a good place to hide my still....

Thu, 11/07/2013 - 19:16 | 4132871 El Vaquero
El Vaquero's picture

Yup, and the elk hunt is actually real.  Four of us have tags, and we should be done by the end of the 2nd day down where we are going.  If not, it's a 5 day hunt.  Nothing like being up in the mountains with friends.  Go hunt your ass off during the day, then come back and drink beer in a cabin in front of the fireplace until bed time, then do it all over again, while making dirty jokes the whole time.  Good times.

Thu, 11/07/2013 - 19:43 | 4132983 Reckonball
Reckonball's picture

Be sure to nail up plenty of "no trespassing" signs,to keep out the hoards of desperate urbanites,and mouth-breathing soldiers of the free shit army..not to mention our illegal amigos,who have absolutely no fucking reguard for private property...

Thu, 11/07/2013 - 21:06 | 4133345 El Vaquero
El Vaquero's picture

By no trespassing signs in the event of hoards of desperate urbanites and FSAers, you mean things like "TRESSPASSORS WILL BE VIOLATED" with a picture of a giant pecker right under it?  'Cause I don't think that hungry people are going to give a shit about just any 'ole sign. 

Thu, 11/07/2013 - 22:29 | 4133620 Reckonball
Reckonball's picture

My bad..forgot the sarc tags..thought it was "implied"

Thu, 11/07/2013 - 22:13 | 4133559 DanDaley
DanDaley's picture

Right you are...I know that in a big crunch, my life expectancy will drop about like the market.

Thu, 11/07/2013 - 19:21 | 4132881 TBT or not TBT
TBT or not TBT's picture

Or just a straight up EMP attack that would erase all debt, but also all supply chains, police and armies, governments, and via starvation disease and cannablism, erase around 90% of the population.    Just got to get some nukes to go off in low earth orbit, which is a capacity a dozen nations have and some sell.   Read One Second After to get a feel for things, or Lloyd Tackett's A Distant Eden.    The upshot is, long durable walking shoes, portable water purification and filtration, multivitmins and beans/grains.   Being able to kill quietly, travel stealthily, stash supplies, and communicate by portable radio(Faraday Cages, bitchez) with your tribe, would likely be critical too, more than once.   Maybe some potassium iodide supplies for the inevitable retaliatory and preventative classical MIRVed SLBM strikes that would likely follow, against likely hostile countries miraculously not EMPed.    The jetstream transports that stuff around pretty well. 

Thu, 11/07/2013 - 17:28 | 4132502 Race Car Driver
Race Car Driver's picture

Five more years ... of this shit?

I ask my Magic 8 Ball all the time about five years from now.

The only answers I get are 'Doubtful', 'Ha ha!' and 'You're fucked'.

Do NOT follow this link or you will be banned from the site!