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The Definition Of Insanity

Tyler Durden's picture


... Is shown on the chart below, which compares indexed growth, or lack thereof, in G-5 GDP and compares it to consolidated central bank balance sheets. We bring this up because following this morning's announcement by the ECB's Praet that the European central bank may launch a round of QE (of questionable legality) it is only a matter of time before the red line really takes off and insanity hits truly unseen levels.

There is little to add to this except for the punchline from reformed QEaser Andrew Huszar, which was the following: "We were working feverishly to preserve the impression that the Fed knew what it was doing."

Pretty much says it all.

h/t @not_jim_cramer


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Wed, 11/13/2013 - 12:56 | 4150311 Alpo for Granny
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Wed, 11/13/2013 - 12:59 | 4150324 hedgeless_horseman
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If our only tool is a Heidelberg, every problem is deflationary.

Wed, 11/13/2013 - 13:00 | 4150337 LawsofPhysics
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Deflation is a myth, but isn't "mark to fantasy" accounting wonderful...  (for bankers)

Wed, 11/13/2013 - 13:02 | 4150348 Alpo for Granny
Alpo for Granny's picture

You know what is even better for the bankers LOP?


Wed, 11/13/2013 - 13:03 | 4150361 john39
john39's picture

looking at the various headlines this morning, it seems clear that the ruling powers are now starting to canabalize themselves...  tax raid against apple, limiting german exports....  illegal QE in europe just to try and hold it all together...  they are running out of time.

Wed, 11/13/2013 - 13:22 | 4150450 Shocker
Shocker's picture

Its called a Recovery... They never said for who

Layoff List -


Wed, 11/13/2013 - 13:30 | 4150475 adr
adr's picture

All the Caribou Coffee stores in my area closed. People claim it is because of competition with Starbucks, but most of the Caribou were where Starbucks weren't.

But then you remember Caribou Coffee was owned by rich Muslims. Most likely they were using Caribou to launder money, and once the billions were finally cleared, Caribou lost its relevance to them.

In downtown Cleveland half the restaurants act as money laundering operations for Eastern European mobsters. Having a Casino nearby helps immensely.

Wed, 11/13/2013 - 13:38 | 4150509 RafterManFMJ
RafterManFMJ's picture

I get all my laundering done at Bank of America. Who has time to start a front business up these days?

Wed, 11/13/2013 - 14:00 | 4150650 Keyser
Keyser's picture

Pfft, these guys make Enron and Arthur Andersen look like a bunch of amateurs. 


Wed, 11/13/2013 - 14:17 | 4150745 Almost Solvent
Almost Solvent's picture

HSBC is the absolute best at laudering funds - so good in fact they even get rid of ring around the collar (aka hangman's noose).

Wed, 11/13/2013 - 17:48 | 4151827 giggler321
giggler321's picture


You missed one important thing; that chart is for Assets!  Just not the sort you'd want to even use as loo paper.


Albert Einstein definition of insanity was better: doing the same thing over and over again and expecting different results.


Reminds me of QE^2 or isn't it cublic by now? QE^3?


Years last later will be told that the math's guy got his coefficients the wrong way around no doubt

Wed, 11/13/2013 - 14:35 | 4150849 ChaosEquilibrium
ChaosEquilibrium's picture

The Caribou Coffee's were bought out bt Peet's coffee who wanted an east coast presence!!  Peet's closed the outlets in middle class areas and renamed the outlets in wealthy areas!!!  Is much cheaper to purchase and re-brand than build/open then compete.

Wed, 11/13/2013 - 14:49 | 4150921 Bioscale
Bioscale's picture

Eastern European mobsters in Cleveland restaurants? Are you sure? Hard to believe.

Wed, 11/13/2013 - 13:43 | 4150529 LawsofPhysics
LawsofPhysics's picture


Wed, 11/13/2013 - 15:09 | 4151019 El Oregonian
El Oregonian's picture
"The Definition Of Insanity"?

Thinking that every day we'll all wake up and this financial shitstorm will get better.

Wed, 11/13/2013 - 13:01 | 4150344 NotApplicable
NotApplicable's picture

As always, the tools at the Fed know exactly what they're doing.

Funny when "whistle-blowers" turn out to be nothing more than providers of cover for the evil they've encountered.

Of course, if you're dumb enough to believe the ad copy, well...

"Useful Idiots," FTMFW!

Wed, 11/13/2013 - 13:11 | 4150401 SilverDOG
SilverDOG's picture

Subtract the FED's corporate/wall st 85 Bb b BBIlliioon monthly gift from GDP for the last 4 quarters and you have got A... DEPRESSION.

It be here, now, in your face.


Wed, 11/13/2013 - 13:31 | 4150482 spiral galaxy
spiral galaxy's picture

Agreed! And I would go back even farther to TARP, etc. Then factor in that the methodology for calculating GDP has been retroactively changed (think services, intellectual property, etc.) then the GDP actually declined further.

Wed, 11/13/2013 - 13:25 | 4150460 xamax
xamax's picture

U speak about the german stock Heidelberg ??

Wed, 11/13/2013 - 13:02 | 4150355 Aeternus
Aeternus's picture

Alpo dog food 100% off with your EBT card at WalMart, get it while it lasts!

Wed, 11/13/2013 - 13:04 | 4150364 Alpo for Granny
Alpo for Granny's picture

Just in time for Thanksgiving!

My meat loaf will be extra-special this year!

Wed, 11/13/2013 - 14:56 | 4150964 MachoMan
MachoMan's picture

If you've never seen a SNAP recipient get into an argument with the cashier over dog food being covered, then you're not shopping at walmart...  of course, the immediate (and correct) response following denial is to go get a cart full of people food and then feed that to your dog...  they love hamburger!

Wed, 11/13/2013 - 15:06 | 4151001 pods
pods's picture

Funny you bring that up MM, I did exactly that for my dog. She was gettting older and had health issues, her coat was dull, etc.

So I went and got a bunch of different meats, eggs, brown rice, barley, broccoli, blueberries and a whole host of other stuff. Boiled the meats, then simmered the bones after breaking open. Used that to make the rice.

Ground up the meat and veggies, added the rice and some fish oil and she absolutely loved it. Within weeks she was running around like a puppy again and looked great.

Of course, it cost a bunch of $$ (real food does) and took away a whole afternoon for preparation.

Pet food today is made up of shit that doesn't make it into a Hot Dog.  Scary.


Wed, 11/13/2013 - 15:14 | 4151049 The Continental
The Continental's picture





Wed, 11/13/2013 - 12:56 | 4150313 fonzannoon
fonzannoon's picture

CNBC should hire not jim cramer and seat him next to jim cramer.

Wed, 11/13/2013 - 13:06 | 4150365 Mike Hunt Hurts
Mike Hunt Hurts's picture

Stephanie (Stink) Link is even worse.

Can't stand her whiney bitchy voice.

Wed, 11/13/2013 - 13:22 | 4150448 Unprepared
Unprepared's picture

I'm afraid they will both consume each other and disappear in a big ball of light which opens into a black hole sucking in all the global economy. Matter + Anti-Matter.

Wed, 11/13/2013 - 12:56 | 4150314 orangedrinkandchips
orangedrinkandchips's picture

funny money honey!

Wed, 11/13/2013 - 14:07 | 4150693 Bearwagon
Wed, 11/13/2013 - 14:24 | 4150784 101 years and c...
101 years and counting's picture

pretty simple.  the reasoning goes:  if that red line isnt going up, the gray line would be plummeting.  they are printing out of their asses just to maintain a horrid status quo.  the music is almost done.  once the sheeple own a majority of paper "assets", that red line will stop increasing for a time for the biggest transfer of wealth in history.

Wed, 11/13/2013 - 12:57 | 4150317 cossack55
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Too bad they were not working feverishly to figure out WHAT to do that made some sense.

Wed, 11/13/2013 - 13:31 | 4150483 CrashisOptimistic
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I am frequently somewhat convinced that ZH does not grasp the desperation.

The Fed people are not stupid, evil or part of any global cabal.  They are, rather, utterly desperate.

They HAVE to do this.  The relentless decline of economies globally would kill people outright if they did not.

Wed, 11/13/2013 - 13:59 | 4150641 NOTaREALmerican
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Re:  The Fed people are not stupid, evil or part of any global cabal. 

Yes (and slightly, no).    The Fed is run by economists addicted to a failed religion:  the belief that perpetually increasing debt leads to prosperity.  The religion was followed for 60+ years with outstanding results.   Unfortunately, it stopped working about a decade ago.   But, bullshit is a powerful force (look at the existence of the rest of the ISM's and Relgions).   So,  The Fed people aren't evil, but are (kinda) stupid (in the way any true-believer is to a non-believer) and they are part of global cabal which is simply "the global top 5 or 10% people".   

Everybody knows that everything is bankrupt, the debt can't be repaided and new debt isn't causing growth.    But, the religion says it can't be and the top 10% are demanding to keep their life-style.

So, The Fed is doing the only thing possible, as you said. 

Wed, 11/13/2013 - 14:42 | 4150886 halfawake
halfawake's picture

Yep, and war is even more powerful-er force.

Wed, 11/13/2013 - 17:59 | 4151881 WOAR
WOAR's picture

Indeed. Especially when all you see is bullshit and rainbows.

Wed, 11/13/2013 - 14:17 | 4150744 lasvegaspersona
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do you comment at fofoa?

You have a similar mindset.

Wed, 11/13/2013 - 14:35 | 4150844 Gordon_Gekko
Gordon_Gekko's picture

Then please explain how it came into existence. ..

Wed, 11/13/2013 - 14:59 | 4150976 MachoMan
MachoMan's picture

To quote B9K9, if the banks did not exist, then the government would have to create them.

Wed, 11/13/2013 - 15:47 | 4151196 B9K9
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Strong states defeat weak states - whether it is a 'state of being' or nation state. This is true for either governance of domestic societies and/or opportunities or threats represented by foreign conquest.

To wit, a free people will always be subsumed by those who are able to act in concert to effect an unequal advantage. Banking is simply the bona fide "go to" mechanism that has always conferred unique benefits to those who practice its (dark) arts.

Ditto for foreign parties - they will always take control of territory, people and/or resources given the opportunity to extract excess 'rent' from the stock & flow of critical inputs. (This exactly describes the global US military presence backing the petro-dollar.)

Of course, no one wants to be characterized as fascist state, which is why we are subject to an unbelievable amount of state sponsored propaganda that unremittingly drills into everyone's noggin the notion of a fair, free & exceptional country.

To complain about the way the world actually works is to waste time & energy. Imagine, for a moment, a place in time where people had firepower equal to the state, an environment ethnically cleansed, and virtually untapped resources to fuel a new, mechanical age.

How long did this utopia last? Now, how is to come about again in a present & future reality best described by overshoot, depletion & degradation?

That's right, it ain't. Which is why people should stop complaining and thank their lucky stars they're living in this very moment of time. When the ride ends, I don't think anyone is really going to enjoy eating their peas.

Wed, 11/13/2013 - 17:38 | 4151785 MachoMan
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Please post more

Wed, 11/13/2013 - 15:09 | 4151016 StychoKiller
StychoKiller's picture

Well, howdy stranger!  Are the LBMA vaults empty yet?

Wed, 11/13/2013 - 15:38 | 4151133 Tall Tom
Tall Tom's picture

Crash is Optimistic wrote, "I am frequently somewhat convinced that ZH does not grasp the desperation.

The Fed people are not stupid, evil or part of any global cabal.  They are, rather, utterly desperate.

They HAVE to do this.  The relentless decline of economies globally would kill people outright if they did not."

I am amazed that you do not get it...


The Federal Reserve, in a sense, reminds me of the fictional Soylent Corporation.


Soylent Green was made from dead people. They were feeding Humans with dead Humans.


They were not stupid, evil, or any part of a Global Cabal. was an act of desperation.


They HAD to do that  The relentless decline in the World's Food Supply, (because the Oceans were DEAD), would kill people outright if they had not promoted Cannibalism.


They did not let the people know of their dismal plight. So they offered Cannibalism and Euthanasia as a solution. That is not Evil. That we say...expedient???


Fuck...That is so damned funny. LMAO

Wed, 11/13/2013 - 12:59 | 4150318 LetThemEatRand
LetThemEatRand's picture

What is truly insane is that the red line also represents what we the Taxpayer get to pay back at some point.  Every "asset" on the balance sheet = debt owed by the public.  Those bonds they are buying are an IOU from the taxpayer.

Wed, 11/13/2013 - 13:07 | 4150382 BandGap
BandGap's picture

By "pay" I will take you to mean "pay in some way". It is highly unlikely the taxpayer/citizen will "pay" with anything like money or currency.

Wed, 11/13/2013 - 13:12 | 4150403 LetThemEatRand
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More likely we will just "pay" it back by them devaluing the currency in that amount (after they have converted today's borrowed dollars into actual assets they own), so we'll all pay by having our assets and purchasing power reduced by a large percentage over time.

Wed, 11/13/2013 - 14:56 | 4150942 Jack Burton
Jack Burton's picture

The whole operating plan is to devalue the real worth of the debt by these printing games. Debt levels are impossible to repay, the laws of physics come into play here at this stage. Given that, to devalue the debts is their next best hope.

Does anyone remember way back in late 2008 as the crisis really bit into the economy that "all talking heads" in media had the same chant going "consumers need access to credit" "We need to get consumers borrowing again to fuel growth". How patently stupid can you get! As jobs were imploding these same unemployed were implored to borrow and spend. I knew then that we lived in Bizzaro World. All common sense was out the door. Money printing is now almost universal, the EU is playing the American game now. Open Borders to illegal and legal immigration to infinity. Money printing to Infinity. Austerity for the bottom 90%. Reduced social obligations for the corporate and monied interests. It is a formula that is producing wealth gaps past those of the guilded ages, and past the point of major revolution stages.

We wonder at the mass spying, the increased militarization of police, the unlimited military spending. You know they are preparing for social unrest as this game is picking up speed. I feel that the elites are getting nervous and that they know that only force can maintain the path we are on. Middle Classes are disappearing, replaced by underclasses whose stake in social stability is decreasing fast. People with nothing and no future could give a fuck less if they happen to run down a rich fucker crossing the street in New York or similar possible releases for broke, unemployed and hopeless people. Nothing has happened yet, this does not mean that it won't happen in a couple years.

The elites see the path to profit in the endless war to drive down wages and labor's benefits. This path is now 3 decades old, and total victory is in sight for a minority of corporate managers and owners. They can always find labor to undercut what is presently workign for them. Demand is collapsing, as part time minimum wage workers are the worst fucking consumers and customers business could imagine.

Wed, 11/13/2013 - 13:56 | 4150621 centerline
centerline's picture

Hmmm... say bye, bye to pensions and other promises.  401k conversions with new rules (can't touch it).  Maybe a deposit grab here and there.  It's coming.  And it still wont be enough.

Wed, 11/13/2013 - 14:11 | 4150712 orez65
orez65's picture

"... Pay in some way ..."

They or we will pay with our savings, IRA's, pensions, savings and checking accounts.

In other words they are going to try to steal from us.

Wed, 11/13/2013 - 13:00 | 4150334 Hedgetard55
Hedgetard55's picture

Yea, well chart the stock prices of big multinational banks next to the FED's balance sheet. It is a whole different story.


Nothing new in this post, which is fine. What bothers me is that Tyler would post anything from the WSJ (see below post on jobs), a FED/Wall Street pimp now that Murdoch owns it.

Wed, 11/13/2013 - 13:00 | 4150338 maskone909
maskone909's picture

There is little to add to this except for the punchline from reformed QEaser Andrew Huszar, which was the following: "We were working feverishly to preserve the impression that the Fed knew what it was doing."


yeah they knew exactly wtf they were doing...

stealing our shit.


they even cut this guy off on CNBC fast money to talk about twitter or some bullshit.  im shorting this fake ass market.

Wed, 11/13/2013 - 13:01 | 4150343 Hedgetard55
Hedgetard55's picture

That's crazy talk, brother!

Wed, 11/13/2013 - 13:02 | 4150353 NotApplicable
NotApplicable's picture

Should we tell him that there isn't any market to short?

Wed, 11/13/2013 - 13:06 | 4150371 maskone909
maskone909's picture

well the title of this thread is called "the definition of insanity"

and i am nuttier than squirrel turds


Wed, 11/13/2013 - 13:12 | 4150402 hedgeless_horseman
hedgeless_horseman's picture



Should we tell him that there isn't any market to short?

No, just show him this...

Wed, 11/13/2013 - 13:15 | 4150420 maskone909
maskone909's picture

yes yes that chart is a kick to the nuts indeed.  but you just wait until this qhole debt ceiling circus flares up again....  SPX will break the 200DMA atleast.  then we watch the long end of the curve and grab some popcorn. 

Wed, 11/13/2013 - 13:19 | 4150434 Mike Hunt Hurts
Mike Hunt Hurts's picture

Going "all-In" 4005000 PUTS

Wed, 11/13/2013 - 14:45 | 4150902 halfawake
halfawake's picture

+5000000  lulz

Wed, 11/13/2013 - 15:14 | 4151045 Fuh Querada
Fuh Querada's picture

So what happened after 2007? Without that information the graph is entertaining but otherwise useless.

Wed, 11/13/2013 - 16:12 | 4151354 halfawake
halfawake's picture

"In 2009, Zimbabwe abandoned its currency. As of 2013, Zimbabwe still has no national currency; currencies from other countries are used.[2]"

Wed, 11/13/2013 - 16:20 | 4151385 akak
akak's picture

For simplicity's sake, and for ease of convenience, most financial transactions in Zimbabwe are nowadays denominated in chickens.

Wed, 11/13/2013 - 17:11 | 4151630 Fuh Querada
Fuh Querada's picture

I remember a Canadian once using the phrase "to get f***ed for a chicken" in a conversation. I admired the alliteration, but can't for the life of me remember what it meant!

Wed, 11/13/2013 - 17:07 | 4151621 Fuh Querada
Fuh Querada's picture

good info, thanks

Wed, 11/13/2013 - 13:00 | 4150339 TheFreeLance
TheFreeLance's picture

I just love that little dip in Nov 2012 when banksters really thought that Obama's re-election would somehow "fix" things. Oops.

Wed, 11/13/2013 - 13:03 | 4150360 buzzsaw99
buzzsaw99's picture

they know what they're doing it just has nothing to do with unemployment, gdp, price stability, or any other bullshit excuse they use in public. the great kleptocracy doesn't give a crap about that stuff at all.

Wed, 11/13/2013 - 13:05 | 4150366 youngman
youngman's picture

hey have to be pretty proud of this.....they would say what would it look like if we DID NOTHING....that is always their answer....they truly think they saved the world.....I say saved it from what?....a bunch of unemployed bankers is all

Wed, 11/13/2013 - 13:13 | 4150410 maskone909
maskone909's picture

whats really funny is when MSM boasts that JPM or BAC paid such and such fine.  how do you fine a TBTF?  isnt that contradictory? besides, they are paying fines with OUR money, MONEY HOT OFF THE PRESS!! 

Wed, 11/13/2013 - 13:07 | 4150374 RaceToTheBottom
RaceToTheBottom's picture

The next little bit of QE will do it....


PS.   Oh shit, that was written by Crammer?  I had a perfect record of not reading his crap.  I gotta go take a shower.

Wed, 11/13/2013 - 13:07 | 4150380 ebworthen
ebworthen's picture

Citizens with career employment and steady income and the ability to save?

How 20th century!  Modern government ingeniously bypasses the citizenry!

Now, the banks are re-capitalized without the need for income or savings!

This will end well.

Wed, 11/13/2013 - 13:08 | 4150385 John McCloy
John McCloy's picture

    This really puts things into perspective about the only chart anyone will ever need in order to debunk this "easing" as anything but siphoning off the wealth of the global middle and lower classes. How beautiful it is when they can never hit their GDP "Targets" that qould require ending QE or raising rates...Cmon 10 Year Yield ...GET TO WORK

Wed, 11/13/2013 - 13:09 | 4150387 Sonic the porcupine
Sonic the porcupine's picture

But think of how much lower GDP would be if it werne't for QE!





Wed, 11/13/2013 - 13:10 | 4150393 Silver_K-9
Silver_K-9's picture

They (That Private Company aka the FED) will Crash the system then OWN evreything worth owning... #QE #POMO

Wed, 11/13/2013 - 13:13 | 4150408 LawsofPhysics
LawsofPhysics's picture

Define "own".  When fraud is the status quo, possession is the law.  Good luck to "them" when it comes time to take possession.

Wed, 11/13/2013 - 13:27 | 4150468 insanelysane
insanelysane's picture

You only "own" it until a well armed mob shows up and takes it from you.

Wed, 11/13/2013 - 13:33 | 4150494 LawsofPhysics
LawsofPhysics's picture

"Mobs" tend not to be "well-armed" or organized or prepared for the "units" that may await them.  Chance and preparation always favor those who are trained/prepared.  I don't see many banker at the range.

Wed, 11/13/2013 - 16:03 | 4151314 akarc
akarc's picture

But you can bet they have well paid people who are.

Wed, 11/13/2013 - 14:07 | 4150696 NOTaREALmerican
NOTaREALmerican's picture

Re: well armed mob

History shows that "mobs" tend to kill the wrong people, usually "those people".   

People are, overall, pretty stupid.   And the more people there are the more stupid they get.   On the "stupid scale" mobs are near the top.

If the Krupp family wasn't destroyed in WW2, what do you think will happen to our criminals.

Wed, 11/13/2013 - 13:11 | 4150396 joego1
joego1's picture

The solution is always to print more money for our friends. Are the pitchforks out yet?

Wed, 11/13/2013 - 16:01 | 4151303 akarc
akarc's picture

Who would be first to martyr themselves for nothing

Wed, 11/13/2013 - 13:13 | 4150409 gdiamond22
gdiamond22's picture

I just showed this chart to my CIO and the response was "So what, stocks are going higher"

The next leg down will make 2008 look like a sunny spring day picnic.

Wed, 11/13/2013 - 13:34 | 4150498 NOTaREALmerican
NOTaREALmerican's picture

Re:  "So what, stocks are going higher"

Most people would answer this way.    Everybody knows that the people who run the worlds GREATEST financial system in the entire Universe,  with heroic leaders like "The Mistro" himself, surely have the best interest of Merica at heart, because...

Cue:  slow motion flag

what is good for Merica is good all the INVESTORS in the FREE-ENTERPRISE financial MARKETS of the YOU-UNITED States of Merica...

Cue:  Small bidness man,   looking up from his hard work,  smiles at camera (in slight slow motion).

and as we all know,  FREE-ENTERPRISE is what made this great-n-glorious country great-n-glorious.  It's the FREEDUM to INVEST which is WHY we have the highest standard of living in the ENTIRE Universe, and the Federal Reserve Bank of THEE YOU-United States of Merica is what is keeping Merica FREE - because otherwise we'll be exactly like North Korea were NOBODY can invest which is why they are all poor!!!

Cue:  patriot, nearly in tears, lookup skyward,   slow motion flag in background,  small bidness man gets back to work.

Wed, 11/13/2013 - 13:13 | 4150411 NOTaREALmerican
NOTaREALmerican's picture

Anything to keep the top 10% living well.   Too bad about the "unfit" in the bottom 80% or so.

Wed, 11/13/2013 - 13:34 | 4150499 adr
adr's picture

I know where a lot of rich people live. I'm pretty sure the people working for ADT inhabit the bottom 80%.

When the time comes, the rich won't be able to buy thier way out of it.

Once the first head rolls the next million come off in no time at all.

Wed, 11/13/2013 - 13:45 | 4150542 Seer
Seer's picture

Lawless up (major fraud), lawless down ("direct citizen participation")...

Wed, 11/13/2013 - 15:59 | 4151294 akarc
akarc's picture

From illusion to delusion

Wed, 11/13/2013 - 14:05 | 4150680 SheepDog-One
SheepDog-One's picture

And that's why I see the Homo Sapiens species doomed to extinction. 

Wed, 11/13/2013 - 14:26 | 4150791 NOTaREALmerican
NOTaREALmerican's picture

Re:  And that's why I see the Homo Sapiens species doomed to extinction.

Perhaps, but it'll take some time.   Besides, we're just the least stupid animal on the planet, so that's go to count for something in the survival game.

Wed, 11/13/2013 - 14:41 | 4150881 Skateboarder
Skateboarder's picture

We're indeed the stupidest animal on the planet. Without the flock, you're useless.

Wed, 11/13/2013 - 15:58 | 4151286 akarc
akarc's picture

"A bundle of sticks is hard to break" 

Wed, 11/13/2013 - 13:13 | 4150414 joego1
joego1's picture

These guys are spitting on the rule of law and any sort of moral governance. Soon the masses will join the act.

Wed, 11/13/2013 - 13:46 | 4150559 Seer
Seer's picture

The rule of law?  THEY made them, that's why THEY are WHERE they are now.  If you haven't noticed already, THEY ain't indicting themselves!

Wed, 11/13/2013 - 15:56 | 4151273 akarc
akarc's picture

The masses spit on the rule of law and perverted moral governance.  It is why the current situation exists.

Wed, 11/13/2013 - 13:15 | 4150421 icanhasbailout
icanhasbailout's picture

"Artist Taxi Driver" is owed a hat-tip here for his tagline "It's not a recession, it's a robbery!"

Wed, 11/13/2013 - 13:21 | 4150441 silverserfer
silverserfer's picture

this wouldn't bother me so much if it wasn't these fuckers who already posses most of the gold too. This is why they dont' care. If there is a reset, they will posses the gold to start anew.

Wed, 11/13/2013 - 13:21 | 4150443 falak pema
falak pema's picture

Its NOT insanity : Its delusional pride now turned to desperation, wanting to have your cake n eat it 'cos you are TOP dog of world! 

Caesar to Caracalla, CHarles V, Louis XIV, Napoleon, Hitler were not insane.

Wed, 11/13/2013 - 13:21 | 4150446 Breezy47
Breezy47's picture

I have what is probably a stupid question:

Is the federal govenment becoming the majority shareholder in the stock markets?

Wed, 11/13/2013 - 13:26 | 4150465 Seer
Seer's picture

The Fed is NOT the US govt.

But, I get your point.  It's kind of hard to keep the theives and robbers straight; and, well, when it's all rigged (and always has been) then WTF good is it to complain? (ugh)

Wed, 11/13/2013 - 13:40 | 4150517 Breezy47
Breezy47's picture

Yes, I realize the Fed is not supposed to be. BUT it has always been quasi-government from the beginning. What happens when our government seizes control of the Fed (officially)? The State becomes the majority shareholder of our free market(s), right? And that is called what?

Wed, 11/13/2013 - 13:49 | 4150574 NOTaREALmerican
NOTaREALmerican's picture

Re: The State becomes the majority shareholder of our free market(s), right? And that is called what?

You've got this backwards. "The state" is owned by "the banks". 

This "Free Market" concept you are talking about is only for peasants.   The nobility has never had or wanted a "Free market" because that implies the "probability of failure".

Only a dumbass would actually participate in a "free market".  The smart-n-savvy people rig the market and screw the dumbasses.

Hope this clears things up.

Wed, 11/13/2013 - 15:52 | 4151258 akarc
akarc's picture

rules dictate that markets are not free. Freedom is an illusion.

Wed, 11/13/2013 - 13:52 | 4150594 Seer
Seer's picture

Why would the govt seize the Fed?

I've been saying for years now that the Fed will be the govt's escape hatch.  The Fed will implode, which will allow the US govt to write off all its debt to it: the Fed+Govt essentially strapped the rest of the world to this bomb; the biggest printer (reserve currency) gets to kill its debts via money-printing- I thought folks understood that this is how it always goes? (and, given that the US STILL has a lot of resources, it will be able to restart from a point of not being destitute, which most other countries won't be able to claim to be able to do)

People!  Think these things through!  Sometimes the "bad" guys aren't really the bad guys (they're just acting like it- it's human deception)

Wed, 11/13/2013 - 15:41 | 4151198 odatruf
odatruf's picture

Except, the private owners of the Fed would take it in the ass.  And when those guys take it in the ass, guess what happens next?


Wed, 11/13/2013 - 15:50 | 4151248 akarc
akarc's picture

The FED is the Government by default. Congress and the administration have abdicated their positions to the banks who own the FED. Through control of the economy the FED has dictated who who is in control.  Correct me if I'm wrong, but did not the FED at one time say, we can not do it all, congress has to do something? How did congress respond? They closed the government.

Wed, 11/13/2013 - 13:45 | 4150546 NOTaREALmerican
NOTaREALmerican's picture

Re:  Is the federal govenment becoming the majority shareholder in the stock markets?

By Federal Government I'm assuming you mean "The Fed" (which is not the government) but (regardless) the Fed's balance sheet is (only) 4 trillion or so, and the stock market total value is 18.5 trillion and (supposedly) "The Fed" (which is not the government) is buying bonds - not stocks - and giving the loot to the banks - who actually do own "the Fed" (which is not the government) so, honestly, the Federal Government (which is "offically" the government, but is only authorized to bomb sand-people) doesn't own anything, it's broke. 

Wed, 11/13/2013 - 13:23 | 4150452 worldofdebt
worldofdebt's picture

Speaking of JIM CRAMER, See the Hilarious Video Below "JIM CRAMER'S TERRIBLE STOCK PICKS!"

Wed, 11/13/2013 - 13:23 | 4150453 worldofdebt
worldofdebt's picture

Speaking of JIM CRAMER, See the Hilarious Video Below "JIM CRAMER'S TERRIBLE STOCK PICKS!"

Wed, 11/13/2013 - 13:24 | 4150456 Seer
Seer's picture

I'd posted this in another thread, but, once again, this stuff just boggles the mind:

“Those loans will be paid back as long as the economy keeps chugging along,” Kasabali said. “If there’s a big economic shock, perhaps due to tapering and outflow of foreign funds, then they’ll be in trouble.”

It'll all be fine as long as the unicorns continue to fly... and, well, please send us more unicorns!

Wed, 11/13/2013 - 13:29 | 4150473 El Hosel
El Hosel's picture

We have seen nothing but unseen levels of insanity. Its all out in the open now, nothing to lose, nobody cares.

Wed, 11/13/2013 - 13:56 | 4150627 Seer
Seer's picture

"nothing to lose"

But!... as the title of this article points out, I suppose, it's what we DON'T want to GAIN- INsanity!  I suppose it's just philisophical arguing at this point, whether it's that we're losing our sanity or that we're gaining insanity...  Monty, can I take door number four?

Wed, 11/13/2013 - 15:43 | 4151208 akarc
akarc's picture

"Freedoms just another word........."

Wed, 11/13/2013 - 13:32 | 4150486 WaEver
WaEver's picture

when this sucker goes down unfortunately there 'll be no place to hide.
Keep a low profile and stay zen.

Wed, 11/13/2013 - 14:01 | 4150655 Seer
Seer's picture

I believe that the instruction was given a long time ago: The meek shall inherit the earth.

As Winston Churchill said: "Sometimes you have to do what is required."  Concentrate on what is necessary.  And as Scott Nearing said ( "Do the best that you can in the place that you are, and be kind."

Wed, 11/13/2013 - 13:41 | 4150520 world_debt_slave
world_debt_slave's picture

not only unseen but obscene levels, never before known

Wed, 11/13/2013 - 13:41 | 4150522 ebworthen
ebworthen's picture

FedEx ran that job ad again; $26,000/year with no benefits to be a full time driver for them.

Does the corporatocracy have us where they want us or what?

Wed, 11/13/2013 - 14:09 | 4150701 Seer
Seer's picture

Well, considering that 2/3 of the world's 7+ billion live on $3/day or less, that $26k doesn't look all that bad.

I'm not sticking up for corpoatocracy.  It's just that I believe that we've got something much deeper going on here.  The System is in decline.  The System worked on growth.  If, as I state, growth is dead then this all pretty much makes sense.  Everyone's margins are getting squeezed.  And as this continues all the benefits that "economies of scale" have delivered (there's a pun here somewhere) unwind ("economies of scale in reverse"): how cheaply do you think APPL can push out iCrap when they've got 50% of demand volume and 100% of their P&E to run? something has to give...

We failed to properly account for Natural Capital.  Buying off Mother Nature is becoming harder and harder...

Wed, 11/13/2013 - 15:39 | 4151147 ebworthen
ebworthen's picture

Well, let's take 15% off for taxes, that's $22,100.

Now we'll pretend we're going to buy into ACA, $375 per month = $17,600.

We'll say rent is $700/month (or mortgage, *cough*) = $9,200.

Utilities are going to be ~$150/month = $7,400.

Gas, @ $100/month if you're lucky = $6,200.

Food ~$200/month ("frugalmax") = $3,800.

Phone or cell phone @$40/month = $3,320

Insurance (car) @ $100/month = $2,120

Internet access @ $40/month = $1,640

I'm sure I left some things out.

So, $1,640 left in a year. 

I haven't bought any clothing or medication yet. 

I haven't been to the doctor, made a co-pay, then paid for the visit because my deductible is $5,800/year. 

Let's assume I already have a car; it will need an oil change, tires, brakes, registration and tax. Hopefully not a transmission or clutch or other major repair.

God forbid I have any children to feed or clothe.

Any wonder 20 something's are living in Mom and Pop's basement and Food Stamps/EBT are at all time highs?

Wed, 11/13/2013 - 16:15 | 4151363 Seer
Seer's picture

I hear you.

I really don't, however, believe that TPTB are strategizing for this outcome.  I believe that it's the road that we run across as growth continues.

"Any wonder 20 something's are living in Mom and Pop's basement and Food Stamps/EBT are at all time highs?"

Ever seen how it is in the majority of the world?  My wife is from the Philippines.  I know that this doesn't mean that it should be taken as a blueprint, rather, it's just what it is, and what it is is a more realistic reflection of the true costs of living (conservation of energy- it's nature's mandate).  In my US-lifetime I've seen average house sizes double (more than) while the number of household members have significantly shrunk: in my childhood there were six people living in less than 1,000 sq ft- I'm wanting to say it was closer to 750 but I'm not sure I could establish a sound basis in fact (it's been a LONG time ago).

Wed, 11/13/2013 - 15:27 | 4151117 therevolutionwas
therevolutionwas's picture

Benefits were something companies started offering in the 1930's when our beloved gov't had wage control in effect.  Companies had to compete for employees somehow.  Now it seems to be a right.

Better to do away with all bennies, and the income tax, and etc.....  Beholden to none.

Wed, 11/13/2013 - 15:39 | 4151180 akarc
akarc's picture

Everyone is beholden to someone. Some get caught up in the illusion that they are independent. You break a leg you use a crutch. YOu heal, pass your crutch to the next man with a broken leg. 

Wed, 11/13/2013 - 13:56 | 4150622 Seal
Seal's picture

my definition of insanity is doing the same thing over and over expecting the same result. 

Wed, 11/13/2013 - 14:11 | 4150706 Seer
Seer's picture

There's also a problem with expecting some sort of result out of insanity... (true insanity produces only the incomprehensible)

Wed, 11/13/2013 - 14:11 | 4150662 SheepDog-One
SheepDog-One's picture

Pretty obvious the central banks are hoarding up all the 'wealth', (highly dubious future paper promises) they can before they pull the rug out.

Wed, 11/13/2013 - 14:32 | 4150828 Seer
Seer's picture

They're just using fake paper to paper over their bad books.  And BOOKs have been for quite some time, nothing but "stories," fiction.

Wed, 11/13/2013 - 14:08 | 4150698 polo007
polo007's picture

Former Morgan Stanley equity strategist Gerard Minack notes the U.S. Gini index, a gauge of income disparities that is also at a record, tracks with measures of political polarization. So he worries inequality could give rise to more political dysfunction that risks damaging the economy.
Another concern is that rising inequality creates financial instability. Raghuram Rajan, the economist now heading India's central bank, has posited that the credit bubble in the early part of the last decade was a consequence of inequality. In his telling, stagnating incomes led middle-and lower-income families to borrow excessively to raise standards of living.
But if inequality has risen to a point in which investors need to be worried, any reversal might also hurt.
One reason U.S. corporate profit margins are at records is the share of revenue going to wages is so low. Another is companies are paying a smaller share of profits on taxes. An economy where income and wealth disparities are smaller might be healthier. It would also leave less money flowing to the bottom line, something that will grab fund managers' attention.

Wed, 11/13/2013 - 14:37 | 4150862 Seer
Seer's picture

Human nature.  Just as the underlings thought they had "wealth," so too with TPTB.  TPTB had to tell lies about what wealth is, so much so that they started to believe the lies themselves.  It's NOT there.  If REAL wealth, which comes from the physical planet, isn't there as continuing feedstock then the music stops (which is what we're hearing [or, in the case of the music stopping- not hearing; the dog that's not barking]).

"So he worries inequality could give rise to more political dysfunction that risks damaging the economy."

He needs to define what he means by "economy."  I'm thinking that "economy" = illusion, and if we're serious about having essential shit work that we need to stop pretending that the illusion has ANY value whatsoever.

Wed, 11/13/2013 - 15:32 | 4151143 akarc
akarc's picture

We traded debt for needs. Then we traded debt for wants. Then we traded debt for profit. THen debt became our lives, or lack thereof. 

Wed, 11/13/2013 - 16:17 | 4151377 Seer
Seer's picture

Hampster.  Wheel.  We failed to put these two words together in order to see what the picture really was...

Wed, 11/13/2013 - 14:10 | 4150703 SheepDog-One
SheepDog-One's picture

The real insane part is all those 'bank assets' are is just future paper promises. Now all they have to do is figure out how resurrect this rotted dead golden goose they killed to start laying the golden eggs for them again.

Wed, 11/13/2013 - 14:42 | 4150885 Seer
Seer's picture

They need to get us to buy-in to the fiction that there are even golden geese.  It is, an attempt to buy-in to a scheme ABOUT a scheme... rehypothication style all the way...

Wed, 11/13/2013 - 14:17 | 4150737 orangegeek
orangegeek's picture

Squeeze harder!!!!!



Wed, 11/13/2013 - 14:19 | 4150752 Bryan
Bryan's picture

"I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail."


Wed, 11/13/2013 - 14:23 | 4150777 venturen
venturen's picture

now I know why they want to take your gun.

Wed, 11/13/2013 - 14:29 | 4150811 spekulatn
spekulatn's picture

There is little to add to this except for the punchline from reformed QEaser Andrew Huszar, which was the following: "We were working feverishly to preserve the impression that the Fed knew what it was doing."

Pretty much says it all.

The quote heard 'round the world (not).  Well done again, ZH
Wed, 11/13/2013 - 14:32 | 4150826 rustymason
rustymason's picture

I guess it can just go on like this  f o r e v e r   . . .

Wed, 11/13/2013 - 14:34 | 4150834 Peter Pan
Peter Pan's picture

I am not in favour of guillotines. The pain is over within seconds.

What I am in favour of is kicking bankers' heads rather than kicking the can.

The bankers' pain will be much more lasting.

Wed, 11/13/2013 - 14:35 | 4150842 polo007
polo007's picture

According to Macquarie Research:

The Bold and the Brave

- In the current circumstances, it is becoming more likely that the successful reflation of the major economies will require some bold and brave policy initiatives that build on the current unconventional monetary policy measures. Not surprisingly, several clues to the way forward come from policy experiences in the Great Depression (notably the US and UK).

- Indeed, the Economist notes that lessons from Depression scholars like Ben Bernanke and Lars Svensson highlight several key ingredients to a monetary policy solution; namely:

- announce an inflation or price stability target that guarantees a period of above-average inflation;

- depreciate the exchange rate; and

- support the depreciation, to the extent necessary, through direct intervention in foreign exchange markets (ie: print money and buy foreign currencies and assets).

- Interestingly, the underlying strategy revolves around the focussed pursuit of inflation, not in beggar-thy-neighbour competitive exchange rate devaluations as many continue to fear as a consequence of ongoing QE monetary accommodation.

- In the event, the clear and present trap for the major central banks in the current environment is one of ‘role stereotyping’ by financial markets that is the result of over 20 years of policy success in targeting inflation. It will take some very bold and brave monetary policy initiatives to convince markets that these ‘independent’ institutions are prepared to do whatever it takes to sustainably reflate their economies.

Wed, 11/13/2013 - 14:48 | 4150917 Seer
Seer's picture

More people ought to stop writing and start DOING.

WORDS and talk about talk, all stuff NOT about the physical world, do shit.

Nowhere in any of this "intellectual" talk is there the mention of limits "imposed"  by the PHYSICAL world.  I'm starting to get a better appreciation for that Sherlock Holmes "quote" about the dog that didn't bark.  NONE of these people talk about the PHYSICAL word because to do so would mean that THEY would end up actually having to do REAL work in the REAL world.

The System appears to be dysfunctional because it's BASED on dysfunction!  There is, therefore, no way to make things functional based on its operating ruleset; it is the ruleset that is the System.

Wed, 11/13/2013 - 14:36 | 4150853 Peter Pan
Peter Pan's picture

If kicking heads is too brutal then they should opt for waterboarding. It s a recommended form of therapeutic confession by the US government.

Wed, 11/13/2013 - 14:39 | 4150873 el Gallinazo
el Gallinazo's picture

It is only insane if you accept their public agenda.  It is only insane by the most metaphysical definition (more akin to evil) when their true agenda is considered.

Wed, 11/13/2013 - 14:42 | 4150889 disabledvet
disabledvet's picture

repudiate gold (Nixon, 1973) repudiate debt (2008) and now repudiate all fiat (hyperinflation in Latin America/India, hyperdeflation in Europe, pound starts to move higher, bit coins become the currency of the realm along with gold (which is deflating) and silver (which never really inflated all that much actually.)

Wed, 11/13/2013 - 14:48 | 4150916 polo007
polo007's picture

According to Ernst and Young LLP:$FILE/Challenges_for_central_banks_wider_powers_greater_restraints.pdf

As recently as five years ago, most central bank governors could walk down the main street of their country’s capital city unnoticed, their names and faces familiar only to avid readers of specialist journals. Today, in many countries, they are as well known as the government leaders they serve, and their words and deeds are the subject of heated debate in newspapers, bars and taxis. The continuing financial and economic crises have thrust central bankers center stage and cast them as leading actors, simultaneously berated as progenitors of the crisis and hailed as potential saviors.

It is not clear that all central bankers welcome this transition from membership of a hitherto largely anonymous technocratic elite to an increasingly public role. This white paper argues that central bankers need to adjust to an increasingly public and prominent position on the political stage. A fundamental debate about the position of central banking and its relationship to government is now under way.

The financial crisis has led to considerable interlinked economic, sovereign debt and financial sector turbulence. At the time of writing (September 2012) these concerns show little sign of abating. This has been accompanied by increasing volatility in the political arena and an unstable world against the backdrop of a wholesale macroeconomic global transformation. The benign economic conditions and stable politics of the “Great Moderation” have been shown to be transitory. The global economy confronts its greatest challenges since the Second World War.

Central bankers have achieved a new prominence and become pivotal members of the policy-making establishments of both national and intergovernmental organizations. As a result of a growing responsibility for financial stability, coupled with their injection of massive amounts of liquidity into the financial system has, central banks in many jurisdictions, have extended their powers and remit beyond their traditional “lender of last resort” function. We suggest in this report that this extension of powers is unlikely to be temporary and may not be entirely desirable. It raises far-reaching questions about the accountability and transparency of the principal activities of central bankers.

In addition to their traditional monetary policy and governmental banking roles, central banks have become national and global firemen with growing responsibility for the resilience of economies, the stability of financial systems and individual financial institutions, macro-and microprudential regulation, and macroeconomic and quasi-fiscal policy. They have gleaned far greater exposure to the media, politics and electorates. They have also taken on a whole range of new strategic and operational tasks and become exposed to far greater financial, reputational and operational risks. As their responsibilities have grown, so have their balance sheets and the accompanying risks.

From acting largely behind the scenes, central banks have now entered the political arena in a very public manner. Whether as principals, agents or advisers, it is unimaginable that there would no longer be a strong political dimension to the activities of central banks. If that is the case, to what extent and how should central banks strive to maintain political neutrality? Should fiscal policy, for example, be an arena restricted to elected politicians, or should the views of central bankers be publicly aired as well? To whom should central bankers be accountable, and how transparent should that accountability be to the media and to electorates?

If this expanding remit of new roles and activities is to become permanent, what targets should be set for a central bank, and who should decide whether these targets have been met? While it is comparatively straightforward to set a target for inflation, how does one measure “financial stability,” and just what degree of financial instability is deemed acceptable?

Wed, 11/13/2013 - 14:57 | 4150966 Seer
Seer's picture

Beavis: "Ha ha... he said 'permanent'"

That which cannot continue forever won't.  A system based on perpetual growth can NEVER be stable.  Useful idiots HAVE to avoid logic, as their lives depend on them doing so.

Wed, 11/13/2013 - 14:59 | 4150971 Bioscale
Bioscale's picture

Financial stability of every country with a central bank will rapidly improve after these fuck heads will be hanged in public.

This bullshit about central banks as companies with experts for managing economies is unbelievable. Pure fucking brainwashing.

Wed, 11/13/2013 - 16:22 | 4151393 Seer
Seer's picture

"Financial stability of every country with a central bank will rapidly improve after these fuck heads will be hanged in public."

Please define what "financial stability" means.

If you have to use the word "growth" then you conflict with the very word "stability."  That is, stable means "non-changing" or "in balance."  And, I'm afraid, that if one goes for growth based on being "in balance" then it invariably leads to the "a rising tide lifts all boats" thing, and I think that this has already been proven to be problematic ("dubious" would be a better word).

Wed, 11/13/2013 - 16:07 | 4151331 rustymason
rustymason's picture

"It is not clear that all central bankers welcome this transition from membership of a hitherto largely anonymous technocratic elite to an increasingly public role. This white paper argues that central bankers need to adjust to an increasingly public and prominent position on the political stage."

In other words, "Oh, vey! We are too visible again! Get outa the limelight, or it's going to be another Holocaust(TM)!


Wed, 11/13/2013 - 14:54 | 4150954 lasvegaspersona
lasvegaspersona's picture

I know that giving the Fed any benefit of the doubt is NOT a popular idea here on ZH but they are presiding over the largest currency failure in human history. Yes they lie, yes their actions beneit a few and yes it will end badly for most. We got here however because 'We the People' demanded it. WE voted for this shit, the bennies, the cheap imports (at the expense of jobs) and, while many saw into the future, the majority supported candidates who kept the goodies coming. It seems to be human nature that got us here and no evil cabal was required. The Fed cannot be happy to be in charge at a time like this. I certainly do not like what I see but I am taking actions that I hope and believe will get me through when the dollar ends it's reign. I still bitch but I have resigned myself with the realization that I cannot hold back the tide of the hungry collective and it's demand for the easiest way out.

Wed, 11/13/2013 - 15:05 | 4150994 Seer
Seer's picture

It's always good to question premises.

The Fed can NOT telegraphy what it intends to do w/o undermining what it wishes to accomplish.

I don't automatically assume the worst, though I do look at things cynically.  I have come to believe that the Fed is actually taking on the role of going down with the ship.  The last chapter was written a long time ago.  The ship WILL sink.  So, the "agreement" is that the Fed will become the US's BIG BAD BANK, which will write-off all the debt that it swallowed via USTs (which were provided in order to keep the merry-go-round going for the banking system).  Doors close.  New owners come in... will we try and operate using the same impossible set of rules again, that growth is necessary in order to make things work?, That is the question: if the answer is Yes then we'll have to once again create an illusion of growth, though will have to do so w/o the assistance of the rest of the world (whose people won't be supporting come that time).

Wed, 11/13/2013 - 15:21 | 4151091 akarc
akarc's picture

"Doors close.  New owners come in... will we try and operate using the same impossible set of rules again,"

Thus the reference to insanity

Wed, 11/13/2013 - 16:23 | 4151328 Seer
Seer's picture

Sigh, though it's not insane to TPTB: the results aren't something that an insane person could possible accomplish (well, there's that Thousand Monkeys at Typewriters thing, but...)

Wed, 11/13/2013 - 15:16 | 4151057 therevolutionwas
therevolutionwas's picture

I refuse the "WE" shit.  I had no part in the insanity.

The "majority" who  "supported candidates who kept the goodies coming" will get all they deserve, I hope.

This mess, theoretically, could be 'fixed.'  It would be painful, but the dollar need not go all the way down.  You are probably right though, that the sheeple will demand the easiest -to them- way out which will be a last supper of zimbabwe cash.


Wed, 11/13/2013 - 16:26 | 4151408 Seer
Seer's picture

Did you, however, purchase goods and or services from entities lobbying the US govt?

And, did you pay taxes?

As much as I'd like to say that I had no part in any of this it is just not possible.  Have I expressly endorsed it?  No.

It's the System.  If I thought otherwise I'd bother to vote...

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