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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Alpo for Granny's picture


hedgeless_horseman's picture



If our only tool is a Heidelberg, every problem is deflationary.

LawsofPhysics's picture

Deflation is a myth, but isn't "mark to fantasy" accounting wonderful...  (for bankers)

Alpo for Granny's picture

You know what is even better for the bankers LOP?


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.

Shocker's picture

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

Layoff List -


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.

RafterManFMJ's picture

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

Keyser's picture

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


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).

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

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.

Bioscale's picture

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

El Oregonian's picture
"The Definition Of Insanity"?

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

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!

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.


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.

xamax's picture

U speak about the german stock Heidelberg ??

Aeternus's picture

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

Alpo for Granny's picture

Just in time for Thanksgiving!

My meat loaf will be extra-special this year!

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!

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.


The Continental's picture





fonzannoon's picture

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

Mike Hunt Hurts's picture

Stephanie (Stink) Link is even worse.

Can't stand her whiney bitchy voice.

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.

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.

cossack55's picture

Too bad they were not working feverishly to figure out WHAT to do that made some sense.

CrashisOptimistic's picture

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.

NOTaREALmerican's picture

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. 

halfawake's picture

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

WOAR's picture

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

lasvegaspersona's picture


do you comment at fofoa?

You have a similar mindset.

Gordon_Gekko's picture

Then please explain how it came into existence. ..

MachoMan's picture

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

B9K9's picture

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.

StychoKiller's picture

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

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

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.

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.

LetThemEatRand's picture

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.

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.

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.

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.

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.

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.