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"We Are Playing Economic Russian Roulette"

Tyler Durden's picture





 

Submitted by Brandon Smith of Alt-Market blog,

By any reasonable measure, I think it is safe to say that the last quarter of 2013 has been an insane game of economic Russian Roulette.  Even more unsettling is the fact that most of the American population still has little to no clue that the U.S. was on the verge of a catastrophic catalyst event at least three times in the past three months alone, and that we face an even greater acceleration next year. 

The first near miss was the Federal Reserve's announcement of a possible “taper” of QE stimulus in early fall, which sent shivers through stock markets and proved what we have been saying all along – that the entire recovery is a facade built on an ever thinning balloon of fiat money.  Today, markets function entirely on the expectation that the Fed will continue stimulus forever.  If the Fed does cut QE in any way, the frail psychology of the markets will shatter, and the country will come crashing down with it.

The second near miss was the possible unilateral invasion of Syria demanded by the Obama Administration.  As we have discussed here at Alt-Market for years, any invasion of Syria or Iran will bring detrimental consequences to the U.S. economy and energy markets, not to mention draw heavy opposition from Russia and China.  Though the naïve shrug it off as a minor foreign policy bungle, Syria could have easily become WWIII, and I believe the only reason the establishment has not yet followed through with a strike in the region is because the alternative media has been so effective in warning the masses.  The elites need a certain percentage of support from the general public and the military for any war action to be effective, which they did not receive.  After all, no one wants to fight and die in support of CIA funded Al Qaeda terrorist cells on the other side of the world.  The establishment tried to hide who the rebels were, and failed.  

The third near miss was, of course, the debt ceiling debate, which has been extended to next spring.  America came within a razor's edge of debt default, which many people rightly fear.  What some do not yet grasp, though, is that debt default of the U.S. was NOT avoided last month, it is INEVITABLE.  Debt default will ultimately result in the death of the dollar as the world reserve currency, and the petro-currency.  This final gasp will lead to hyperstagflation within our financial system, and third world status for most of the citizenry.  It is only a matter of time, and timing.

“Timing” is truly what we are all concerned about.  Those of us in the field of alternative media and economics understand well that the U.S. is on a collision course with disaster; it is a mathematical certainty.  We no longer think in terms of “if” it happens - we only question “when” it will happen.  Our fiscal structure now hangs by the thinnest of threads, a thread which for all we know could be cut at a moments notice.  However, economic and political storms appear to be brewing with the year 2014 as a target. 

Globalists have been openly seeking the destabilization of U.S. sovereignty, and they have openly admitted that the destruction of the dollar and our economic foundations will aid them in their goal.  It is important to never forget that international financiers WANT to absorb America into a new global economic structure, and that the U.S. must be debased before this can be accomplished.   Here are a few reasons why I believe 2014 may be the year they make their final move...       

Debt Debate On Steroids

Nothing concrete was decided during the highly publicized “battle” between Democrats and the GOP on what would be done to solve the U.S. debt addiction.  Some people might assume that the fight will go on indefinitely, and that the “can” will be kicked down the road for years to come.  This assumption is a dangerous one.  If you thought the last debt debate was hair raising, the next is likely to give you a coronary.  Think of 2013 as a practice run, a warm up to the main event in 2014.  Why will next year be different?  Because the motivations behind a debt ceiling freeze (and thus debt default) are now supported by the obvious failure of Obamacare.

Funding for Obamacare was the underlying issue that gave strength to the push for new debt ceiling extensions.  The U.S. government has overreached financially in ever way imaginable.  We have long running entitlement programs that have been technically bankrupt for years.  But, Obamacare was so pervasive during the debt debate that we heard nothing of these existing liabilities.  Ultimately, Obamacare is the primary reason why so many Americans on the “left” want unlimited spending and inflation, and why so many Americans on the “right” are actually seeking debt default. 

We all know that at the top of the pyramid the debt debate itself is false left/right theater, but it is still theater with a purpose.

In my articles 'The Socialization Of America Is Economically Impossible' and 'Obamacare: Is It A Divide And Conquer Distraction', I discussed why universal healthcare could not be implemented in America, and I predicted in advance that Obamacare was actually a farce that was designed to fail.  The program's only purpose is to provide a vehicle by which divisions between the fake left and the fake right could be solidified in the minds of the common populace.  A lot of cynicism was directed at the notion that the government might create a socialized healthcare initiative and then allow it to fail.  Of course, we now know that is exactly what they had in mind.

During the last debt debate, Obamacare was just a policy waiting to be implemented; next debate, that policy will be rightly labeled a train wreck.  Obamacare is falling apart at it's very inception, and evidence makes clear that the White House KNEW in advance that this would occur.  In the days before it's launch, performance tests on the Obamacare website showed conclusively that the system could not handle more than 500 users.

Obama promised that preexisting healthcare plans would be retained by Americans and that the Affordable Care Act would not do damage to established insurance models.  He made this promise knowing full well that he could not or would not keep it.  This dishonesty has resulted in rebellion by Democrats who have sided with Republicans to pass a bill which obstructs the erasure of existing health coverage.

States once disturbingly loyal to the White House are now moving to limit the application of the Obamacare structure.

The White House had foreknowledge that the program was nowhere near ready, yet, they moved forward anyway.  Why wouldn't they stall?  Why would Obama knowingly unleash his “opus” before it was finished?  He had it in the bag, right?  He won, right?  All he had to do was build a functioning website and keep his promises at least long enough to sucker the majority of Americans into the system.  Instead, he throws the fight and hits the canvas before he's even punched?  Why?

It all sounds rather insane if you aren't aware of the bigger picture, and I'm sure the average Democrat out there is wide-eyed and bewildered.  Some might blame it on “ego”, or “hubris”, but this makes little sense.  Obamacare is an American socialist's dream.  With a simple working public interaction model, Obama would be worshiped by leftists for decades to come as the next Franklin Delano Roosevelt.  Hubris should have ENSURED that the White House launch of Obamacare would be flawless. 

Once you realize that this is not about Obama, and that Obama is nothing but a middle-man for the globalists, and that the actual implementation of Obamacare never mattered to the establishment, the fog begins to clear.

With Obamacare in shambles, the dynamic of the debt debate theater changes completely.  Some Democrats may well show support for a hold on the debt ceiling, for, what reason do they have to champion more spending?  Obama has already made fools of them all, and the Obamacare motivator is essentially out of the picture.  The GOP will be energized and more unified than the last debate, giving more momentum to a debt ceiling lock.  The argument will be made that a resulting debt default will not be harmful, and that the U.S. can carry the weight of existing liabilities until the budget is balanced.
This is certainly a lie, but it is a fashionable lie that Americans will want to hear. 

Americans do not want to hear that our economy is too far gone and that any motion, to spend, or to cut, will have the same result – currency collapse and fiscal implosion.  They do not want to hear that pain must be suffered before a realistic solution can be applied.  They do not want to hear the the system will have to be brought down before it can be rebuilt.  And, they definitely do not want to hear that the system will be deliberately brought down and replaced with something even worse. 

Will the next debt debate in Spring 2014 end in debt default and the collapse that globalists desire so much?  It's hard to say, but many insiders appear to be preparing for just such a scenario...

The Fed's Buzz Kill

No one, and I mean no one, believes the private Federal Reserve will ever commit to a taper of fiat stimulus.  Hell, I barely believe it's possible, and I'm open to just about any scenario.  That said, I have to ask a question which few analysts seem to be asking – why does the Fed keep pre-injecting the concept of taper into the mainstream if they never intend to implement it?  When has the Fed ever pre-injected a plan into the MSM which it did not eventually implement? 

The banksters have the markets in the palm of their hand, or at least they seem to.  Stocks now rise and fall according to whatever meaningless press release the central bank happens to put out on any given morning.  What do they have to gain by consistently shaking the confidence of investors around the world by suggesting that the fiat party they created will abruptly end?

The impending approval by the Senate of Janet Yellen, a champion of the printing press, would suggest to many that QE-infinity is assured.  We know that the black hole generated by the derivatives implosion cannot be filled (debts still exist in the quadrillions of dollars), and that the Fed will have to print endlessly in order to slow the deterioration of the the banking sector.  We know that none of the currency flows created by the Fed are trickling down to main street, which is why credit remains mostly frozen,  real unemployment counting U-6 measurements remains at around 25%, food stamp recipients have risen to around 50 million, and the only sales boosts to property markets are those caused by big banks buying bankrupt houses and then reissuing them as rentals.

We know that it makes sense for the central bank to continue QE, if only to continue pumping up banks and the stock market and hide the truly dismal state of the overall system.  But let's forget about what we think “makes sense” for just a moment...

What if the Fed no longer WANTS to hide the true state of the system anymore?  What if QE is now giving back diminishing returns, and will soon be no longer effective at hiding economic weakness?Central bankers surely don't want to take the blame for a collapse, but what if the perfect patsy is already lined up?  A patsy so hated and despised that no one would think twice about their guilt?  I am, of course, talking about the Federal Government itself.

Think about it; the failure of Obamacare promises a debt debate in the Spring of 2014 that will rock the very foundations of the global economy.  Both sides, Democrat and Republican, are ready to blame the other fully for any disastrous outcome, though “Tea Party” conservatives have been painted by the mainstream media as the lead culprits behind a financial catastrophe that began before the Tea Party was born.  The idea of “gridlock” leading to impasse and calamity is already built into the country's consciousness.  The general public's opinion of all areas of government has recently hit all time lows.  In fact, our opinion of government could scarcely go any lower than it already has.  Everyone HATES what government is, or what they think it is.  Most Americans would be happy to place the brunt of the blame for an economic disaster on the shoulders of Washington DC.

The genius of it is, they deserve a large part of the blame.  They helped to make possible all of the horrors the citizenry will face in the coming years.  The problem is, the public may become so blinded with rage over the failure of the political system, that they may completely forget about the role of international and central banks and turn on each other instead. 

Why is the Fed now discussing, just before the possible confirmation of Janet Yellen, a stimulus dove, the need for taper measures by 2014?

Is it just coincidence that the taper discussion is taking place parallel to the debt ceiling battle, or are these two things related?  What if the Fed plans to apply QE cuts during or after the renewed debt debate in order to make the market effects even more negative?  What if the Fed is timing the taper to give energy to a debt default?  What if the Fed wants to reduce support, so that later, when all hell breaks loose, we'll come begging them for support?

Whether you believe a debt default will be deliberately induced or not, certain foreign investors have been preparing for such a U.S. breakdown for years, and once again, the apex investor, China, has made plans for dramatic economic policy changes to take place in 2014...              

China Is Ready To File For Divorce

The economic marriage between China and the U.S. has been touted Ad nauseum as an invincible relationship chained in eternity by unassailable interdependency.  I've just never bought this fanciful tale.  For years I've written about the likelihood that China will decouple from the American dollar apparatus, and so far, most of my warnings have come to pass. 

China has pushed forward with massive physical gold purchases despite all arguments by skeptics that gold is no longer necessary or prudent as a safe haven investment.  Apparently, the Chinese know something they do not.  China is on pace to become the largest holder of gold in the world as early as 2014.

China has now issued Yuan denominated bonds and other assets around the globe, and its central bank has expanded its total balance sheet to at least $24 Trillion, outmatching the reported increased balance sheets of all other central banks:

Now, some feel that this Chinese liquidity should be considered a massive bubble on the verge of exploding, and that it will be Chinese instability, not U.S. instability, that triggers renewed crisis.  I would like to offer an alternative view...

I am not shocked at all by this incredible spike in Yuan circulation.  In fact, I expected it.  The fall back argument against China dumping the dollar as the world reserve has always been that there is no alternative currency that boasts as much liquidity as the dollar.  Well, as we now know, China has been raining Yuan down on every continent.  International banks like JP Morgan have been HELPING them do it.

China is not desperately attempting to prop up its own markets like we are in the U.S.  China is DELIBERATELY generating massive liquidity because they seek to aid the IMF in its longtime plan to replace the greenback as the world reserve currency.  These are not the activities of an investor that wants to stick with the U.S. or the dollar.  These are not the activities of a nation that wishes to continue its limited role as a source of cheap industrial labor.    

China, being the largest importer of petroleum surpassing the U.S., is now planning to price its crude oil futures in Yuan, instead of the dollar.

And, the Chinese central bank has announced that it now plans to stop all purchases of U.S. dollars for its reserves.

These decisions are part of a precision strategy, a formula which was finalized during a little discussed and very secretive economic policy meeting which took place in China this past month.

While much of the media was focused on China's call for softer restrictions on its one-child policy, they ignored the thrust of the meeting, which was to establish Chinese consumption over exports, and internationalize the Yuan.  All that is left is for China to “float” the Yuan's value on the open market, which is an action the head of the PBOC, Zhou Xiaochuan, says he plans to expedite.

All of the reforms discussed at China's Third Plenum meeting are supposed to begin taking shape in...that's right...2014.

A Storm Of Septic Proportions

As I have always pointed out, economic collapse is not necessarily an event, it is a process.  The most frightening elements of this process usually do not become visible until it is too late for common people to react in a productive way.  All of the dangers covered in this article could very well set fires tomorrow, that is how close our nation is to the edge.  However, the culmination of events so far seems to be setting the stage for something, an important something, in 2014.  If the worst is possible, assume the worst is probable.  The next leg down, or the next economic carpet bombing.  Maybe slightly painful, maybe mortal.  Sadly, as long as Americans continue to remain dependent on the existing corrupt system, global bankers can pull the plug at their leisure, and determine the depth of the wound with scientific precision.

 


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Wed, 11/27/2013 - 20:17 | Link to Comment negative rates
negative rates's picture

And I thought that Santa firing up those sleighs for christmas early was a bad deal.

Wed, 11/27/2013 - 20:22 | Link to Comment I am Jobe
I am Jobe's picture

Sheeples have their countdown clock going. Never underestimate Amerikan Consumerism to keep this going.  

Wed, 11/27/2013 - 20:54 | Link to Comment flacon
flacon's picture

...but we already know where the bullet is. It is in the chamber. We are just hoping that the gunpowder is wet, which it isn't. 

Wed, 11/27/2013 - 21:39 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

It is too late for the R-Team and the D-Team to resolve this, even if they wanted to (which the D-Team does not even say they want to).

It is now up to each of us to protect ourselves and our loved ones.

Gold is part of the answer.  Next up would be survival stuff, just in case.

Wed, 11/27/2013 - 21:58 | Link to Comment SafelyGraze
SafelyGraze's picture

The Last Christmas

by Tyler Durdenz

2013 marked the end of the traditional holiday known as "Christmas."

People bought shit and gave it to each other in a keynesian orgasm of M3 velocity.

Young adults (TM) who couldn't find employment slept all day in mom's basement while they tweeted about their 30k of student debt they were defaulting on.

Their divorced parents had emptied their pockets paying lawyers and mortgage and home equity interest.

The grandparents emptied their savings when their pensions turned to dust.

After defaulting on the credit card debt they piled up during Christmas 2013, they joined the zombie universe where Christmas passes with no stimulative transmission into the retail economy.

or into any economy.

Happy Holidays, ZH!

much love,
misteryellenz 

Wed, 11/27/2013 - 22:08 | Link to Comment new game
new game's picture

tgi 2014...

Thu, 11/28/2013 - 11:56 | Link to Comment novictim
novictim's picture

You don't know Keynesian economics.  I'm outing you.

Thu, 11/28/2013 - 14:53 | Link to Comment Oracle 911
Oracle 911's picture

Actually what he said is neo-Keynesianism, but there is still here thet wrong premise every dept=wealth creation.

 

Anyway this article confirmed my suspicion, guys up there are playing a Russian roulette, but they are deadly wrong in many things:

1st, it is not normal Russian roulette, it is a reversed one 5 bullets in 6 chambers. :D

2nd, that gun will hit not just us, but them too. I mean the sheeple will go after them to, not just after their muppets. LOL

Wed, 11/27/2013 - 22:50 | Link to Comment logicalman
logicalman's picture

I'd say you are right, but in the wrong  order.

Thu, 11/28/2013 - 09:22 | Link to Comment Zero Point
Zero Point's picture

I would put those prioroties the other way 'round Bearing man.

This ride may get biblically bumpy.

Thu, 11/28/2013 - 13:16 | Link to Comment Rafferty
Rafferty's picture

Yes, I've been hearing for the last five years that doom and destruction will happen any day now.

I feel I'm being cheated.

 

Wed, 11/27/2013 - 20:22 | Link to Comment NoDebt
NoDebt's picture

Yes, but since everyone knows we are playing with fire and what the stakes are, nobody will rock the boat.  That would be like bankers taking excessive risk on mortgage derivatives just to goose their next bonus.

Insane.  Nobody would ever do that.

Thu, 11/28/2013 - 13:04 | Link to Comment AldousHuxley
AldousHuxley's picture

thus reason why dictatorships never exist.

 

the top guys always need top 1-5% highest performers to support them thus they give some rewards and the rest will just follow.

 

 

Wed, 11/27/2013 - 20:25 | Link to Comment Redneck Hippy
Redneck Hippy's picture

Now what? Chinese QE is way bigger than our QE so that means everybody's going to dump the dollar for the watered-down yuan?  No wonder bitcoin is spiking.

Wed, 11/27/2013 - 20:27 | Link to Comment negative rates
negative rates's picture

A dollar will get a dime on the world stage once the corruption is weeded out.

Wed, 11/27/2013 - 22:49 | Link to Comment logicalman
logicalman's picture

Won't even get a nickel.

Wed, 11/27/2013 - 21:06 | Link to Comment Againstthelie
Againstthelie's picture

That's an error in the otherwise very interesting article above:

Not the Chinese CB has expanded it's balance sheet to 24 trn, the Chinese commercial banks have.

Wed, 11/27/2013 - 21:25 | Link to Comment runningman18
runningman18's picture

They are the same thing.  The Chinese CB essentially controls all "private banking" in the country.

Wed, 11/27/2013 - 20:28 | Link to Comment no life
no life's picture

I was listening to talk radio one day, when I realized the role they are making for politics  in daily life. They are making it become the average person's opportunity to get philosophical, or express their logic capabilities if you want, on something just complex enough for them to feel like they are the ones to come up with the right way of thinking on this or that overrarching societal topic. Their opportunity to "get their philosphy on." 

Thu, 11/28/2013 - 04:18 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Except philosophy attempts to understand the universe and humanities role in it, whereas the shit they spout on talk radio amounts to religous dogma with the political parties representing two wings of the same fucked up insane religion.

Its another distraction, another way of making sure you don't peer behind the curtain and notice the great and powerful Oz is just an old man tring to pull the wool over your eyes.

It will all be fuckin roses and shit if and when the republicans get in office or the democrats, except it won't. politics as a solution to anything died of a head wound in Dallas courtesy of a government trained sniper, 50 years ago.

Thu, 11/28/2013 - 21:17 | Link to Comment Mentaliusanything
Mentaliusanything's picture

And it was a hell of a shot! Although it was a moving target it was coming forward at about a 7 deg angle so as to clear the car screen. he held his line from above the target. The range was around 300 - 400 meters. The weapon was of large calibre and the bullet selection destructive no matter what part it hit. But it was a bull , entered the skull just above the right eye, hitting the hard part of the scull where the projectile broke into its desired formation and thus removed most of the left rear of the brain. The initial (single) shot from the rear, that passed low into his neck then exited into the Governor was also a fine shot but the weapon was not of sufficient calibre and the bullet selection a mistake. Grassy knoll my ass. It was well behind the overpass with an elevation of 18- 20 degrees. But still, a Hell of a shot from a rifle that had a prewarmed barrel and used match class hand pressed projectiles. Leopold scope of course.

I didn't need the Warren Commision to obsfucate the figging obvious. 

Wed, 11/27/2013 - 20:41 | Link to Comment 1835jackson
1835jackson's picture

How many house in Hampton’s conversations will be going on this very evening about "repositioning" themselves? It only takes a few to move the whole market these days.

Wed, 11/27/2013 - 22:27 | Link to Comment disabledvet
disabledvet's picture

"manipuflation." where is that guy anyways? "so many roads. so many roads." one red flag is the move higher literally on "Off to Hamptons Day." (Memorial Day weekend.) the pro's leave for summer vaca, the Fed attempts and fails at Taper...the rookies hold down the fort...the pro's return this fall and start buying. the shorts have been ruined. only now are they waking up to said effect? we are in my view well past the point where this market can only be played from the long side. "discipline" is just knowing your risk..."what you can stomach" (while not being bearish) so to speak...and with so much fixed income in the "marketplace" already (Social Security, disability and the like) i would imagine many a person can "stomach" a lot of risk right now. so throw some darts at the dart board...i did. oooops, missed. waited it out...the market has come back to me. equities haven't even batted their eyelashes yet. http://www.youtube.com/watch?v=mXWkIZUPmDY

Wed, 11/27/2013 - 20:41 | Link to Comment Obamananke
Obamananke's picture

Sadly i agree with everything this article states.

Wed, 11/27/2013 - 20:57 | Link to Comment sschu
sschu's picture

The econonmic collapse bogey man is always around the next corner .... or next quarter.

It is coming, but it is a fools game to predict when.

sschu

Wed, 11/27/2013 - 21:08 | Link to Comment HaroldWang
HaroldWang's picture

The "economic collapse" happened in 2008-2009. I still don't understand why people don't get that. 

Wed, 11/27/2013 - 21:08 | Link to Comment Againstthelie
Againstthelie's picture

What problems have been solved?

How have they been solved?

Wed, 11/27/2013 - 21:24 | Link to Comment HaroldWang
HaroldWang's picture

Housing has come back to earth. Less people filing for UE claims. GDP growth (admittedly slow, but growing and not contracting). Foreclosures falling rapidly. People with 401ks or investments seeing strong returns. 

Need more? 

Yes, it's not perfect, but it's much, much better. There will be a collapse at some point. There was one in the 20's/30's. There was another one 5 years ago. So maybe sometime in 2050??? Sorry, I can't keep reading about doom until it finally and inevitably happens 40 or 50 years from now.

Wed, 11/27/2013 - 21:28 | Link to Comment Againstthelie
Againstthelie's picture

Have you heard about the rumor, that the FED is pumping every day more than 2 bn$ freshly printed money into the stock market and 2 bn$ into the housing market?

Wed, 11/27/2013 - 21:37 | Link to Comment runningman18
runningman18's picture

Not even close.  UE claims have dropped because millions of people have been unemployed so long they no longer qualify for welfare benefits.  Official GDP numbers don't take into account all the fiat the fed had to inject in order maintain the appearance of growth.  Foreclosures are falling because far more Americans now rent instead of buy.  People with 401k's are seeing strong returns because the fed has artificially pumped up stocks.  NOTHING HAS CHANGED.  

Wed, 11/27/2013 - 22:30 | Link to Comment disabledvet
disabledvet's picture

even better. "what predicament?" our bull market...your problem.

Wed, 11/27/2013 - 21:44 | Link to Comment knukles
knukles's picture

And is still underway.

Nothing's changed

Oh, symptoms are being addressed but the diseases remain unchecked.

Wed, 11/27/2013 - 20:58 | Link to Comment HaroldWang
HaroldWang's picture

It's getting difficult to read these types of articles when clearly the economy is improving. Slowly but definitely on the right track. Housing overshot a bit to the upside recently and is now settling into a nice groove. Claims are falling rapidly. Many economic indicators suggest steady improvement. It's hard to argue with that. And when the entire world is in on the game, it will continue until one of them wants it all. But that won't happen while things are getting better, slowly. It's a pretty good scenario we're facing right now. Perhaps they truly have figured it out.

Wed, 11/27/2013 - 21:09 | Link to Comment Againstthelie
Againstthelie's picture

Liquidity is solvency?

Wed, 11/27/2013 - 21:18 | Link to Comment Westcoastliberal
Westcoastliberal's picture

You must be "Million Dollar Bonus" in disguise. "Steady improvement" my ass. I don't call an actual unemployment rate of 25% "improvement".

Wed, 11/27/2013 - 22:32 | Link to Comment NoDebt
NoDebt's picture

I'm confused.  Your screen name and your comment don't square.  I'm not your down-vote, but I'm guessing that's why you got one.

I gotta hear this story.

Thu, 11/28/2013 - 02:59 | Link to Comment macbone
macbone's picture

It's not MDB himself, it's a guy doing MDB. It's a reasonable
Facsimile but original MDB had a slightly more aggressive
Loopiness. Christ, even the trolls are counterfeit currency
These days. God bless everyone on the holidays.

Wed, 11/27/2013 - 21:32 | Link to Comment SilverCoinLover
SilverCoinLover's picture

Did you copy & paste this from a post four years ago? Still looking for them green shoots are ya?

Wed, 11/27/2013 - 21:56 | Link to Comment kchrisc
kchrisc's picture

"That's funny. I don't care who you are."

Wed, 11/27/2013 - 22:18 | Link to Comment Not My Real Name
Not My Real Name's picture

I know. America is back on track, baby. I can't believe you forgot to mention the miracle of Obamacare.

 

Wed, 11/27/2013 - 23:50 | Link to Comment NeedtoSecede
NeedtoSecede's picture

Gave you a grennie, just for your avatar Not Real.  Yukon Cornelius is a bad ass!

Thu, 11/28/2013 - 00:35 | Link to Comment yogy999
yogy999's picture

When exactly did MillionDollarBonus change his moniker to 'HaroldWang'?. And why would he or she have done so?

I kind of liked the old moniker 'MillionDollarBonus'.

Thu, 11/28/2013 - 02:39 | Link to Comment S.N.A.F.U.
S.N.A.F.U.'s picture

HaroldWang (including the avatar) is an obvious reference to HarryWanger who predates MillionDollarBonus by quite a bit.  Don't know who the current HaroldWang is, but akak had an idea about who HarryWanger was.

To stick with the "conventional naming scheme", variations on MillionDollarBonus shouldn't be used unless it's funny.  Variations on HarryWanger are totally appropriate when the poster is simply a dick (or at least plays one on ZH).

Thu, 11/28/2013 - 02:51 | Link to Comment Canoe Driver
Canoe Driver's picture

Hey Wang, you are right in one regard, that the collapse has already occurred. Where your thinking strays badly is that you assume it is over now, where in truth it continues, and continues to worsen, with masking efforts by the government everywhere you turn. No wealth or money is being created, only currency is being printed. Because currency purports to represent the money stock, the more you print, the LESS the value held in any given amount of currency.  Hard asset holders reap a windfall, while holders of currency and the millions living paycheck-to-paycheck are effectively diluted. In essence, highly regressive taxation is occuring on a massive scale.

Why would even a moron believe such a collapse could be reversed in only five years?

Thu, 11/28/2013 - 06:38 | Link to Comment dogfish
dogfish's picture

HaroldWang is RoboTrader the same M.O.

Thu, 11/28/2013 - 08:33 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

Harold must be a Fed / government propaganda department agent.

Wed, 11/27/2013 - 21:13 | Link to Comment rlouis
rlouis's picture

Those are some pretty compelling edge of the cliff moments for the market.  Would it be wrong to surmise that the market will not crash until they want it to?  Perhaps the plan is not to install to a global modified gold standard, but to transfer to Chinese fiat, and leave the USSA a broken pile of depreciated crap.

 

 

Wed, 11/27/2013 - 21:13 | Link to Comment Ban KKiller
Ban KKiller's picture

I like ignoring history. I can sleep at night....

How long does the average fiat currency last?

What is the number of years?

What?

Forty? Oh, yeah. 

Thu, 11/28/2013 - 11:28 | Link to Comment rwe2late
rwe2late's picture

per James Joyce

"History ...  is a nightmare from which I am trying to awake"

Wed, 11/27/2013 - 21:28 | Link to Comment vulcanraven
Wed, 11/27/2013 - 21:49 | Link to Comment starman
starman's picture

Harold wang you're high my man ! GM has 2300 less dealerships, 90% of US corporations been running leaner operations by cutting overhead (meaning laying off 15-30% of the work force! 47million people on food stamp and 93million no jobs!
WAKE UP!

Wed, 11/27/2013 - 21:53 | Link to Comment sosoome
sosoome's picture

People getting fed up with the feds is near meaningless. They get fed up with everyone except their own reps, and encourage them to get as much candy as they can, which just keeps the circle unbroken.

Wed, 11/27/2013 - 22:00 | Link to Comment Runs-With_Toast
Runs-With_Toast's picture

What are peoples best guess for the year it goes boom? 2017?

Wed, 11/27/2013 - 22:35 | Link to Comment NoDebt
NoDebt's picture

End of 2016.  So Obama can bail out everyone like GW did at the end of his 2nd term before riding off into the sunset.

Thu, 11/28/2013 - 04:05 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

it went boom along time ago. Now we are living through the aftershocks. The propaganda machine tries to paper over it, the same shitty shows pumping the same pretend reality, meanwhile 99% of folks are getting poorer,older,less healthy.

food stamps rising,poverty rising,gasoline prices rising, food prices rising, wages falling..

this trend looks bleak. You want to see the future? visit Youngstown,Ohio. The destruction started there 40 years ago, and the waves,like ripples keep expanding in the economic pond.

It used to be thought the economic blight was confined to the rust belt, hence the sexy name, but now it is obvious the whole world is rusting. 

This aint yer grandfather's economy.work til you die if you can or starve if you can't that's the obvious lesson being learned.

The great depression surrounds us behind the facade of cooked economic numbers and cheerful images on tv. The fed is pumping up the stock market so people will think there is a recovery. There is no recovery. why is the fed still pumping if there is a recovery? the fed knows there is no recovery.

The economy is dead in the water and sinking.

Thu, 11/28/2013 - 11:54 | Link to Comment novictim
novictim's picture

We had a previous great depression and brave smart folks saw the inherent contradiction in how capitalism runs and they made the neccessary shifts of wealth from the rich to the poor in order to reach a new and better equilibrium.

We can do this again.  We just need brave and good people in public office.

Bottom line, we need to redistribute the poker chips in order to continue the economy.  Consumer need the cash that the wealthy have stored away in bank vaults or the economy is "dead in the water" as you have said.

Recognize that wealth has not decreased.  We have an OVER ability to produce bumping up against a inability to consume.  But no one will admit this simple truth and redistribute the money...so we are heading for a crash instead and people will suffer for no reason.

Have a great Thanksgiving.

Thu, 11/28/2013 - 18:42 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

wealth HAS decreased. Understand this: the quality of resources has decreased, from food to ore grades, to air quality and water quality, which are all real wealth for real survival.
The smartest recognized capitalism is the SOLUTION, not the problem, and used it where in the world it was permitted despite a huge war being on to end the Depression.
Capitalism has no inherent contradiction: it has ONE purpose and that is to best match freedom with survival, demand to supply, relying upon consent & choice.
Nothing about this is a contradiction.
There was NO shift from the rich to the poor. None.
Many of the poor died in war and never returned. They lost more than money: they lost their lives.
My grandfather was there, he returned, but his brother did not survive it. Nazi P.O.W. camp. It's a risk entering a war.
For those who remained it was the conquering of nations that led the conquerors to be richer. The poor didn't get more rich: they simply got a chance to work and earn, and some also got opportunities which weren't legal, weren't moral, weren't capitalism, and that's just the way of the world.

You have been badly misled by your Marxism.
Literally everything in the world you see is opposite to what you are claiming it is, or was, or will do, or how it works.

Thu, 11/28/2013 - 18:34 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

ha, as it happens that was my grandfather's economy, but then again, my grandfather was a working man in England entering WW2 for the Navy.
When he was younger than I am now he was living still in the conditions of the Depression.

Wed, 11/27/2013 - 22:02 | Link to Comment buzzardsluck
buzzardsluck's picture

American population - Fuck'em

Wed, 11/27/2013 - 22:10 | Link to Comment Harbanger
Harbanger's picture

The American population is composed of individuals from every nation on earth.  Where do you live?

Thu, 11/28/2013 - 03:44 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

under my hat unless it rains, then i go inside.

Wed, 11/27/2013 - 22:02 | Link to Comment new game
new game's picture

liquidity could be the ultimate trap. worthless dollars and no home over your head, no gold silver copper lead food or anything those dollar used to buy. not even the promise i luv you will fucking work. mad max will welcome you to the fold. bitchezz be bitchezz

Wed, 11/27/2013 - 22:12 | Link to Comment new game
new game's picture

harold wang is a god damn red fucking blue idiot and he defines the whole motherfucking problem-fucking idiot with an opinion!!!!!!!!!!!!

edit and disclosure; i could be considered a fucking idiot by many on this blog and they rightfully right may damn well be right-typed with humility...

Thu, 11/28/2013 - 11:44 | Link to Comment novictim
novictim's picture

I agree with the "3-near-miss"analysis up to a point.  But lets not pretend that this game is limited to just the US economy or that only US Brinksmanship will pull that trigger.  It is the global economy which has the fuse lit with nary a nub remaining.

Further, lets not pretend that anyone even needs to pull a crazy stunt like the debt-ceiling default for this whole house of cards to come tumbling down.  After all, for the American and Western middle-classes, this global economy has been in free fall since the 1970s.  

Wages have been stagnant or declining for 35+ years now with wealth shifting at a alarming rate from the consumer class to the wealthiest few.  This has lead to a collapse in global consumer demand and a oversupply of production leading to rising unemployment... a viciouscycle we have been calling "recession".

As manufacturers pull back on the higher wage US work force and shift to production centers first in China/India and now to Vietnam and Cambodia we see an "end point" where the global system completely stalls and the Trade Floors echoe with "SELL! SELL! SELL!".  

This is the grim and predictable end to any capitalist system when allowed to run its course for long enough.

 

BTW...did I mention the simultaneous collapse of global food stocks due to climate change?  Eat up!  Happy Thanksgiving!

Thu, 11/28/2013 - 18:30 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

incorrect. There is no oversupply of production. Production has been matched fairly well to available demand but that demand has been skewed so that a very large number of PERSONS have no dollars/yen/euro to buy with and the remainder, while matching supply adequately, is in the hands of fewer.
Part of this is that a larger number of people are ill, lazy or stupid. Sorry for the stupids, some are nice people with a good work ethic, honest, not lazy at all, but just aren't that bright but regardless a person must not be stupid OR lazy OR useless OR in the wrong place at the wrong time to get ahead. That's life, not just for humans but for all living things.
You haven't even seen capitalism in use yet you claim to see a crisis in capitalism. What you see is a crisis in NATURE that there's too many eaters with too few methods to find food, and also a crisis in Marxism where a religious following of his works (that you are following) is in diametric opposition to reality. Your crisis is to follow something impossible as if it were the grand-master plan. That's a personal crisis in the making.

I will tell you right now: every action you see around you is 100% anti-capitalist. There is NOT any use of capitalism in central banking or printing money, it is 100 % anti-capitalist. There is NO capitalism in the use of trade-agreements enforced by governments AGAINST a person or business. That's ANTI-capitalism. There is NO capitalism in using war to attack others to take what they have or to DESTROY their capacity to produce, trade or just survive. That's all 100% anti-capitalism and what I just described is about 99% of economic global activity.

Wed, 11/27/2013 - 22:14 | Link to Comment ramacers
ramacers's picture

SPLASH!

Wed, 11/27/2013 - 22:28 | Link to Comment Jack Burton
Jack Burton's picture

The basic collapse of America is founded on America's transfer of it's entire productive sector to China and other Asian nations. This began as soon as Nixon opened China, picked up speed under Reagan, and blasted off for the moon under Clinton. The next president Bush saw to it that the trend continued, and Obama has done nothing to alter it. History is clear that the nation that claims "work shop of the world" status is the one whose power and economy grow. It was a real hoax to believe that transfering all manufacturing to cheap labor nations could be made up for by America's new Banking, Health Care and Government economy. When the spies and military suck up over 1 trillions dollars a year. When health care, the biggest private industry in America, cost way more than twice as much per person than in any other first world nation, with nearly third world outcomes. Where the American capitalist is now a financial engineer or banker.

Collapse is coming because America produces nothing, thus their can be no real wealth creation, no surplus of wealth produced by the coming together of labor and capital.

America is a giant police state that feeds a giant military machine. Most people with a decent income are earning their dollars from the government thus the taxpayer.

Look around you. Entire cities exist where there is no industry. Only Cops, Fireighters, Teachers, Government Office workers, medical personel, US service members, spies, federal agents, drug warriors and bankers. This is a fact, look at your typical American city. Not a smoke stack in sight. Our ports export jack shit, they have giant container crains that unload full containers and reload them empty.

We will collapse. Our people were lied to, by our bribed politicians, all of whom are in the pay of interenational finance capital and speculators. America prints money, when the world says no more to the green asswipe, our time in history will be over, all that will be left is for the multicutural nation to tear itself limb from limb. Old against young. Black against white. Mexican agaist black. Everybody against the jews and Asians. Seemingly the only immigrants who can still strike it rich in our failing system. What was that movie called. "12 years a slave" soon to be followed by "There will be blood". That is my take on it.

Wed, 11/27/2013 - 22:54 | Link to Comment fonzannoon
fonzannoon's picture

"why does the Fed keep pre-injecting the concept of taper into the mainstream if they never intend to implement it?"

To keep the market from going parabolic. That was an easy one Brandon.

Wed, 11/27/2013 - 23:02 | Link to Comment Seer
Seer's picture

You never are stumped! :-)

Yes, that's what I thought as well.  Besides, really now, it's the Fed's job to not "telegraph."  Yes, one can snicker at this, but remember: there are a LOT of external forces looking to topple the US (just as the US works to topple others).  If the Fed were going to say what they're intending to do and then actually go to do it you'd find that it wouldn't work.  At this point it's all over anyway.

Wed, 11/27/2013 - 23:23 | Link to Comment runningman18
runningman18's picture

The fed is planting the taper idea in the media because they actually plan to follow through, and they are conditioning the public to the concept before hand, just like they did with TARP, QE1, QE2, QE3, etc.  There is no way they would suggest a taper unless their market influence through QE was already diminishing.  It's just common sense.

Wed, 11/27/2013 - 23:41 | Link to Comment fonzannoon
fonzannoon's picture

LOL good luck with that common sense Brandon.

Wed, 11/27/2013 - 23:56 | Link to Comment runningman18
runningman18's picture

I'm not the OP, but if you know the basic financial history of the fed, yes, it is common sense. 

Thu, 11/28/2013 - 18:23 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

the history of the fed is to lie & to steal.
Tapering doesn't do either.
Crashing the market does.
Only after insiders are positioned short.
Pushing markets up works too: only after suckers are short on margin & insiders are positioned long.

Wed, 11/27/2013 - 22:55 | Link to Comment novictim
novictim's picture

Jack, you got that half right but well done!

The part you overlook is that our entire economic dilemma boils down to a mismatch of production to consumption.  It is the fundamental flaw that is inherent to Capitalism, the best system we have for maximizing short term allocations of resources.

Those off-shored former-US factories are even leaving China now and China is facing a middleclass that is having the rug pulled out from it just like has happened to the US middleclass...only the Chinese middle-class is experiencing the let down MUCH FASTER.  China is on the verge of revolt which is leading to it playing up nationalistic games with Japan as a distraction.  

To really understand the economic fate we are experiencing, ask yourself: In the aggregate sense, can it EVER be that all workers (aggregate global workers mind you) earn sufficient pay to purchase all the production they produce?  If they did, would there be any reason for the aggregate manufacturers to even start businesses?  

 

And when the gap of ability to consume catches up with the glut of production, what happens then?  Now you get the picture.  Keynesian economists have solutions to the dilemma but there are none in charge today (FDR was the last administration that got this right).

Wed, 11/27/2013 - 23:40 | Link to Comment Seer
Seer's picture

"Keynesian economists have solutions to the dilemma but there are none in charge today"

Huh?

Keynes if he were alive today would totally stumped.  Reason being is that he only figured that injections were necessary for short-term.

The FACT stands, $85/month and all it's doing is having us tread water.  Yeah, sure, the "markets" go "up," but that's just the cost of inflation.

The REALITY is that we were producing WAY to much shit.  By bumping up the demand side you only force things to ratchet up even more.

The PROBLEM has been EASY CREDIT.  People went on shopping sprees with second mortgages.  This in turn resulted in businesses ramping up production in order to cash in on the demand: and things being as competitive as they are many opted to go full throttle for fear of losing market ground- they figured that they'd just outlast their rivals when the inevitable downturn set in (I don't think they imagined that all this overheated consumption would result in taking the legs out of the entire economic system).

Unless one tags things back to physical resources (as in natural resources) then one has no real tetherings to reality.

Thu, 11/28/2013 - 00:20 | Link to Comment novictim
novictim's picture

Seer, Keynes advocated Fiscal spending/policy.  That would be JOBS PROGRAMS/Infrastructure spending, social programs such as Social Security...could even be dumping money from helicopters onto poor and middleclass neighborhoods(would have been better than what we see now!).

But the Stimulus we see today, SEER, is a MONETARY stimulus...ZIRP and QE which shifts liquidity to the banks/financial sector.  That money was hoped by Obama/Benanke (bizzarely) to spur further investment in production and create jobs...stupid since we are at 20% over production as it is so who was going to invest this way??!  The Obama stimulus sits in the banks in what can be described as a liquidity trap.

 

Yes, Keynes would be sorely dissapointed at the stupidity/betrayal represented in the current policy choices.  And yes, he believed in a process that stimulated consumer demand and then tapered off once GDP picked up.  Then he would advocate paying down the debt by TAXING business and industry.  

So the $85billion/mo is just means SHIT to you and me and bank to the banksters.  Regarding easy credit, the banks have historically low inflation and few safe investment options so they are SITTING ON $2TRILLION in bank vaults.  ONly inflation would scare that money into circulation...force it to be spent on investments (one would hope business but again we have over production as it is).

Easy credit for the consumer has run its course via delinquent HELOC/Home equity loans...that game is over. 

The key is pulling money from capitalists and redistributing it to the consumers in order to restart the economic cycle.  Revoluions do this and will do this or we will all become hunter gatherers again.

Thu, 11/28/2013 - 00:29 | Link to Comment novictim
novictim's picture

Keynes also advocated TARIFFs...SEER, how about them apples!

Thu, 11/28/2013 - 01:03 | Link to Comment Seer
Seer's picture

Your point?

Thu, 11/28/2013 - 11:33 | Link to Comment novictim
novictim's picture

No point...you are either not reading my posts or you are way over your head.

Have a great Thanksgiving!  Gobble gobble!

Thu, 11/28/2013 - 00:25 | Link to Comment novictim
novictim's picture

Seer, Keynes advocated Fiscal spending/policy.  That would be JOBS PROGRAMS/Infrastructure spending, social programs such as Social Security...could even be dumping money from helicopters onto poor and middleclass neighborhoods(would have been better than what we see now!).

But the Stimulus we see today, SEER, is a MONETARY stimulus...ZIRP and QE which shifts liquidity to the banks/financial sector.  That money was hoped by Obama/Benanke (bizzarely) to spur further investment in production and create jobs...stupid since we are at 20% over production as it is so who was going to invest this way??!  The Obama stimulus sits in the banks in what can be described as a liquidity trap.

 

Yes, Keynes would be sorely dissapointed at the stupidity/betrayal represented in the current policy choices.  And yes, he believed in a process that stimulated consumer demand and then tapered off once GDP picked up.  Then he would advocate paying down the debt by TAXING business and industry.  

So the $85billion/mo just means SHIT to you and me but means bank to the banksters.  Regarding easy credit, the banks experience historically low inflation and few safe investment options so they are SITTING ON $2 TRILLION in bank vaults.  ONly inflation would scare that money into circulation...force it to be spent on investments (one would hope business but again we have over production as it is).

Easy credit for the consumer has run its course via delinquent HELOC/Home equity loans...that game is over. 

The key is pulling money from capitalists and redistributing it to the consumers in order to restart the economic cycle.  Revoluions do this and will do this or we will all become hunter gatherers again.

Thu, 11/28/2013 - 01:03 | Link to Comment Seer
Seer's picture

"Seer, Keynes advocated Fiscal spending/policy.  That would be JOBS PROGRAMS/Infrastructure spending, social programs such as Social Security...could even be dumping money from helicopters onto poor and middleclass neighborhoods(would have been better than what we see now!)."

We got exactly to this point because of too much easy credit.  You're stating that we need to make it even easier?  Free?

And what exactly do you expect people to do with it?*  They'd pay off loans (or should), which is basically the same thing that is happening now- QE is going into the banks. * Either given directly or by way of jobs.  And when it was over there would be that ugly govt debt stuff again...

Why the approach to bail the banks?  Because everything has been tied into the banking system.  The probability that the entire banking system could collapse and not cause a total loss of social control is/would have been extremely small.  Banks are still afloat.  The core of the economic system -Wall Street- is still afloat.  Yes, it's an illusion, but it's, so far, kept roving mobs off the streets.

Woody Allen put it well when he said that we've come to a fork in the road, and that one path leads to certain death and the other to utter dispair.

By taking the bank path it was thought that that would allow more time either stave off a collapse, or, worst case, slow it down.

One can talk about creating make-work jobs, but what happens AFTER the work is done?  Rebuilding/increasing infrastructure when less and less people can afford it?

"The key is pulling money from capitalists and redistributing it to the consumers in order to restart the economic cycle.  Revoluions do this and will do this or we will all become hunter gatherers again."

Key to what?  All it is is a SHIFT.  It's no SOLUTION.

You are best to take into consideration this quote from Eric Sevareid:

"The chief cause of problems is solutions."

If one doesn't really understand the problem (not properly defined) then you're NOT going to get any real solution (it might LOOK like a solution, but over time it'll prove itself not to be).

BTW - You don't want to know how this really ends do you?  It's all a backwardation.  Some point in the future we WILL be hunter-gatherers.  Just not sure if it'll happen before or after the next glacial period.  I'm a farmer, in which case I'm not afraid of getting my hands dirty.

Thu, 11/28/2013 - 11:25 | Link to Comment novictim
novictim's picture

You've missed my entire point over several posts.  Seer, we did not get here due to "easy credit".  This destination called world economic collapse was a foregone certainty regardless of borrowing.  The easy money and borrowing was just to kick the can down the road.

I guess you never bothered to educate yourself on the Crisis of Capitalism.  Oh well...

Thu, 11/28/2013 - 18:19 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Seer knows far more than you do: it's not the crisis of capitalism. Capitalism is a solution to a set of problems. What you are seeing is the crisis in OVER-POPULATION, which Seer has many times commented on. Our finite planet can NOT SUPPORT the growing population. period.
It is you that should be learning fron Seer, he has already got the wisdom.

Thu, 11/28/2013 - 18:16 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

and yet Keynes would be the stupid one because you CAN'T allocate money to jobs, only to people who say they will hire & you can't FORCE them to hire x people or any particular list of people, much less force the people to GO to work who may not want to, or be too ill to do so at that time.
This is the great failure of central planning: building on expensive assumptions which violate reality.

Pulling money from capitalists is STEALING. Once you do it ONE TIME EVER you actually COLLAPSE the economy. There will be NO CONSUMERS because all producers (capitalists) will SHUT DOWN ALL STORES, ALL FACTORIES, ALL JOBS forever. And neve return.

A revolution is coming and you better be ready for it: people WILL return to homesteading, hunting, gathering, tool-making, farming, growing their own food - or they will starve.

Thu, 11/28/2013 - 18:11 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

AND it's what the spending sprees were on: consumption that left nothing of value behind.
If on the other hand I had got a mortgage, maxed out a HELOC to get stored FOOD and a reliable vehicle, maxed out a credit card which is not secured to get silver from 9 to 25 working into that 50 zone, I could have sold some silver for cash, kept all the tangible goods, sold the house at a  break-even, slight profit, or loss, and had all that tangible stuff to sustain me as per that "loss" in a cheaper home and had basically nothing to worry about.
It's a matter of choice. Bad debt doesn't get you anything. Good debt gets you more than what the debt is worth, one way or another, or in a round-about way, is no debt at all if you can walk away with no penalty (unsecured credit cards).

Some would regard a bad credit rating as a penalty but it takes no money out of my pocket and that means if it's the last time I intend to  use credit (I haven't used any in many years now) then I actually walk away with big winnings.

Thu, 11/28/2013 - 18:08 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Completely opposite. The fundamental BENEFIT of capitalism is to match supply to demand, production to consumption.
It is in fact the ONLY way to match them together. No other system has ever been invented nor ever could be.
This matching requires far more than current demand and current inventory. It requires, due to production lag from living in a physical world of chemistry & physics, a constant set of intelligent projections of near-term & slightly longer-term production & consumption patterns based on seasons, geography, economic problems, environmental problems, etc., almost any factors you can put into any equation.
This one and ONLY system ever invented to solve this problem is called capitalism.

You haven't found or seen a flaw in capitalism. What you've found is a flaw in nature itself: production & consumption aren't based on a single factor & can't be synchronized.

Wed, 11/27/2013 - 22:58 | Link to Comment Seer
Seer's picture

Oh, and we're fat and old too!

All is pretty much a standard template.  The ruling oligarchs know it; they just keep riding on top of humanity's waves, passing along their genes to keep doing the same (they manage to deceive via such idiodic propaganda as "death tax"- oh, no! please don't break up our perpetual gene-pool party!).

Thu, 11/28/2013 - 00:00 | Link to Comment Cashcollateral
Cashcollateral's picture

Basically what he said. I'm not sure why more commentators don't point out the sustained trade deficit as a significant economic issue.

A model of American shareholders paying the chinese to build things that they then import and sell to the rest of the American minimum-wage population is obviously going to end with wealthy shareholders and wealthy Chinese. And impoverished everyone else.

And people wonder where all the QE dollars went.... Look at the damn Chinese. And a graph of the USD versus basically any other major currency over the past 5 years.

 

 

Thu, 11/28/2013 - 01:10 | Link to Comment Seer
Seer's picture

And... it all traces back to the petro-dollar.  The Saudis have helped to ensure that the US is able to print whatever it wants: I think with the Syria thing that they're now going to reconsider this.

It's been nothing but one big orgy for a while now.  That which cannot continue forever won't...

When the international trade engines start slowing down people will start to become hungry.  When starvation starts to bloom all the "wealthy" will find that their "protections" just ain't what they used to be.

Thu, 11/28/2013 - 09:24 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

EXCELLENT post JB...

Wed, 11/27/2013 - 22:51 | Link to Comment Seer
Seer's picture

Brandon, have you considered the possibility that the only plan that exists is to just keep doing what we've been doing?

There are way too many interests involved for coming up with any unifying "new system."

As I've been saying for quite some time now, I believe that the Fed is just going to take the fall.

All the connected folks, all the power.  They NEED government in order to continue to maintain power.  If the Fed goes down they get to reshuffle the cards and start it up all over again.  If the govt goes down then I very much doubt that they'll have a nice handy centralized power-clearinghouse.

It might happen that many countries similarly "adjust" things but, as the EU (and it's Euro business) has shown us, consolidation of govts just ain't got much of a chance of working (thank goodness).

Wed, 11/27/2013 - 23:32 | Link to Comment runningman18
runningman18's picture

"If the govt goes down then I very much doubt that they'll have a nice handy centralized power-clearinghouse."

 

Nonsense.  The elites have been starting wars, toppling governments, and toppling economies for centuries.  All governments are expendable to them.  They don't have to "start over", we have to start over while they consolidate power into a new system they have waiting in the wings.  This is what they have been doing for a long time, so, in a way, you are right....the plan is to KEEP TOPPLING SOCIETIES until global power is centralized. 

Wed, 11/27/2013 - 23:58 | Link to Comment Seer
Seer's picture

"Nonsense."

Consider, however, that we're talking about BIG governments and that their reach in this modern era and under the global economy IS different.

Russia.  They reformed a govt, didn't they?  The oligarchs (Putin's oligarchs) are back on top again.

The amount of power wielded by today's oligarchs DEMAND that there be govts to help them conduct their affairs.

"the plan is to KEEP TOPPLING SOCIETIES until global power is centralized."

It's a progression more than a "plan."  Again, I hardly doubt that mega power out there is going to give up power in order to belong to some new club: unless, that is, there is no alternative- the entire thing is going to collapse and none of them can pretend otherwise (and have no hope of retaining any meaningful power post-collapse).

I understand the angle of argument that you're going by here.  It's NWO-ish; and, while it's a possibility I place it as having a very low probability of occurring (the EU was the test, and it's failing just as I'd expect [not because that's what I "want," but because BIG = FAIL]).

Thu, 11/28/2013 - 00:21 | Link to Comment runningman18
runningman18's picture

I suppose if you haven't done the research, then the concept of the NWO is going to go over your head.  The fact is, these people admit to a concerted plan for global economic governance on a regular basis, and this plan includes undermining the U.S. and the dollar. 

Putin has called for a global currency administered by the IMF and the removal of the dollar:

http://www.themoscowtimes.com/business/article/at-g20-kremlin-to-pitch-n...

China has called for the same:

http://www.themoscowtimes.com/business/article/at-g20-kremlin-to-pitch-n...

International bankers like Soros have called for it:

http://www.youtube.com/watch?v=tBO34qcnoqM

And this PLAN has been in motion for a long time:

"There does exist ... an international Anglophile network ... which we may identify as the Round Table Groups. I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960's, to examine its papers and secret records. I have no aversion to it or to most of its aims and have, for much of my life, been close to it and to many of its instruments. I have objected ... to a few of its policies ... but in general my chief difference of opinion is that it wishes to remain unknown, and I believe its role in history is significant enough to be known."
  -- Quote from Caroll Quigley's Tragedy and Hope

"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences."
  -- Quote from Caroll Quigley's Tragedy and Hope

I could list 100 pages of references to an organized banking cabal destroying currencies and toppling governments to get what they want, but hey, I'm sure you're right and it's all just the natural progression of things without any secretive influences whatsoeverTheir motto is only "order out of chaos", but who cares, right?  That could mean anything...

 

 

Thu, 11/28/2013 - 00:34 | Link to Comment Seer
Seer's picture

"I suppose if you haven't done the research, then the concept of the NWO is going to go over your head. "

Ooh!  Yes, thank you, this is PROOF positive, it's NEW NEWS that I wasn't aware of- me being some dumb fuck... </sarc>

Good fucking god, it's always been talked about.

There are ALWAYS groups of people collaborating on improving universal systems.

I waste none of my time worrying about something that I have absolutely NO control over and which will NOT happen.

Yeah, they'll try another round of fix-the-failing-currency, but in the end it goes nowhere.

I'll stand by my position that the Fed will collapse before the US govt does.  I'll also state that there will NOT be any NWO, at least not in any meaningful way (as in a global centralized govt that is backed by force).

BOO! (careful, they're out to get YOU!)

Thu, 11/28/2013 - 00:52 | Link to Comment runningman18
runningman18's picture

"Yeah, they'll try another round of fix-the-failing-currency, but in the end it goes nowhere.

I'll stand by my position that the Fed will collapse before the US govt does.  I'll also state that there will NOT be any NWO, at least not in any meaningful way (as in a global centralized govt that is backed by force)."

 

Hey, you're as welcome to an uneducated opinion as anyone else is.  I'm just saying, the facts run contrary to what you "think" is going to happen.  What the bankers are calling for is contrary to what you "think" is going to happen.  And who said the Fed will go down before the government?  They could easily go down at the same time.  The government is just as sacrificial as the fed is.  The IMF is the intended new seat of global financial power, remember?  When the dollar dies, the institutions that rely on the dollar die, or are absorbed by something larger, which has really been the point all along. 

Thu, 11/28/2013 - 01:13 | Link to Comment Seer
Seer's picture

And you're entitled to continue to be a walking intellectual garbage can.  Nice (not) doing business with you.  Now, be a good little runningman and run along.

BTW - I didn't down-arrow you: though you deserve it for resorting to childish denegrations.

Thu, 11/28/2013 - 01:33 | Link to Comment runningman18
runningman18's picture

And when the sheep can no longer argue, the sheep loudly bleats, actually believing he is imposing...so predictable, so disappointing. 

Thu, 11/28/2013 - 01:36 | Link to Comment Seer
Seer's picture

You've been here for 41 weeks only and you're taking shit like this?

Fucking pikers...

Careful, they're watching YOU!

Thu, 11/28/2013 - 02:31 | Link to Comment runningman18
runningman18's picture

I'm sorry, I didn't realize you were supposed to be somebody special.  You act like a bitch, so I guess you get treated like a bitch.

Thu, 11/28/2013 - 17:36 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

you  missed the point entirely.
The NWO concept is merely a small piece of the larger problem of seeking GROWTH perpetually.
Without that notion, that drive, there's no NEED to form any NWO.

You cite a so-called cause while I refer to it as a SYMPTOM, as Seer surely will recognize as well.

Wed, 11/27/2013 - 23:36 | Link to Comment novictim
novictim's picture

--> Problem is 1) a Global Conumer crisis.

--> Problem is 2) a product of liberal spending.

1) The impending global economic collapse is fundamentally due to the failure of global consumer demand to keep pace with global supply/production. (Consumer crisis)

2) The impending global economic collapse is due to US debt, US monetary policy, and Chinese "divorse" from the US dollar. (Damn liberal spending!  Buy Gold!)

Choose one!

Thu, 11/28/2013 - 00:07 | Link to Comment Seer
Seer's picture

You're taking about virtual ABSTRACTS!

Humans are running out of Natural Capital to support growth.

As soon as you start pumping consumption you are pumping GROWTH.  This is a finite planet.  There are now 7+ billion humans on this planet.  Our problems are tied to our failure to understand that perpetual growth on a finite planet is NOT possible.

Thu, 11/28/2013 - 00:34 | Link to Comment novictim
novictim's picture

Seer, Growth can take the form of switching from a carbon economy to a solar/wind economy.  That is the growth we need to see and we need to see lots of it ASAP.

Thu, 11/28/2013 - 00:41 | Link to Comment Seer
Seer's picture

GROWTH means an INCREASE.  You're talking "SHIFT."

I was a HUGE proponent of fusion energy until I realized that energy itself is just one part of the equation.  With "unlimited" energy (being able to "produce" more and more) we'd exhaust all of our natural resources in a very short period of time: I was big on Hot fusion as a means of recycling, but it's just not going to get here; plus, it still doesn't address the fundamental problem of perpetual growth in the human population.

Those who struggle to understand the ramifications/meanings of growth ought to view Dr. Albert Bartlett's presentation Arithmetic, Population and Energy (easy enough to google it).

Thu, 11/28/2013 - 11:22 | Link to Comment novictim
novictim's picture

Ya, like shifting from horse and buggy to cars did NOT create growth?  Try to think these things through please.

Thu, 11/28/2013 - 14:09 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Actual cars are merely a symptom or attribute, the real cause of growth was cheap oil, from 1900 or so on. Everything you see around you is a product of that single fact.

What happens as oil gets more and more expensive in a world built on cheap oil.

Economic collapse,malaise, depression, unemployment, nonfuntioning monetary systems built on fiat petro-dollars. Look around you, you are immersed in it.

Just understand cheap oil is gone, gasoline prices have increase by over 10 times their price in 1960's when America had cheap oil.

it grows more expensive by day as we burn it away. We are currently on a production plateau, a plateau is a long cliff, guess what's at the end of a cliff?

Thu, 11/28/2013 - 17:32 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

classic.
I'd say if anything we'd be more sustainable if we let dumb people die so that so few of us are left but are very useful that we stop endangering ourselves by shitting in our own nests or eating our own homes so we have no shelter, so to speak.
I saw that Mouse Utopia experiment too. Very insightful.

Thu, 11/28/2013 - 17:28 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

the carbon economy is more efficient.
The wind economy can't exist: it's hot air. Wouldn't support more than 2% of the world's power needs.
solar: another 5%.

Thu, 11/28/2013 - 00:05 | Link to Comment Radical Marijuana
Radical Marijuana's picture

Yes, we are playing Russian Roulette, and we are doing that while riding on an untested roller coaster, which is like Russian Roulette too, just on a way larger scale ...

Thu, 11/28/2013 - 17:23 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Is it still Russian Roulette if it's an AK-47, not a revolver? It's Russian, right?

Thu, 11/28/2013 - 00:26 | Link to Comment Prairie Dog
Prairie Dog's picture

The end is nigh

The end is nigh

It always is

All men must die

 

Relax, Zerohedgies. All will be well, the evils of fiat currency, central bankers and socialized medicine notwithstanding.

 

Thu, 11/28/2013 - 00:42 | Link to Comment Seer
Seer's picture

Just learn to love the apocolypse...

Thu, 11/28/2013 - 00:53 | Link to Comment runningman18
runningman18's picture

Yes, all will be well, until it's not...

Thu, 11/28/2013 - 03:03 | Link to Comment Canoe Driver
Canoe Driver's picture

The most common error in thinking on this site is a misperception of time scale, as it applies to these socio-economic events.  The US economy has begun its collapse, but the process is a long one. If profound decline takes, say, 50 years to occur, history will record that as having occurred very quickly indeed. The Roman empire, for example, collapsed over a period of several centuries, with intervening periods of marked improvement, of course.  And comparisons with the Great Depression (which nevertheless lasted a long time, effectively from 1929 'til 1945), remain somewhat inept, because, although both the instant crisis and that period involved global-scale calamity, the US had not yet even completed its ascent to hegemony.

Today, by contrast, the world searches for a new hegemon.

Thu, 11/28/2013 - 08:05 | Link to Comment Sandmann
Sandmann's picture
Reinventing Collapse: The Soviet Experience and American Prospects Paperback

by Dmitry Orlov

 

 

The Five Stages of Collapse: Survivors' Toolkit Paperback

by Dmitry Orlov

 

http://www.amazon.com/Christopher-Lasch/e/B000APM2QU/ref=sr_tc_2_0?qid=1...

Thu, 11/28/2013 - 08:25 | Link to Comment MSimon
MSimon's picture

I have an alternate theory. Suppose none of the players know WTF they are doing? Every one is making rational decisions but the end is that they may all be wrong. Because it doesn't work the way they think it will. Think chaotic equations. Where each succeeding cycle is less predictable than the last.

 

What do we really know? There is oil. There is lumber. There are saws. There is silicon. There is gallium. And a gazillion other things. And NO ONE KNOWS HOW THEY ARE ALL CONNECTED. Or how humans will behave.

Thu, 11/28/2013 - 08:40 | Link to Comment MSimon
MSimon's picture

And up thread we get "we are running out of resources". Forgetting asteroid mining (planing in process) and making things smaller - Want to buy a million transistors?

 

The Earth weighs 6E24 Kg. That is an average of roughly 6E14 Kg per person. That is about 1,200,000,000,000,000 pounds per person. What exactly are we running out of? The ingenuity to use it?

Thu, 11/28/2013 - 12:07 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

99% of that is molten rock, which is beyond useless. We live on a thin skin of crust on a planet composed primarily of molten rock. Most of the heavy elements have been pulled to the core by gravity.

the metal deposits on the surface consist mainly of veins deposited thru volcanic action or remains of meteorite impacts from primeval times.

Of course the most precious resource is fresh water which can be easily polluted by a host of sources from human excrement to industrial processes.

Ingenunity died when Television was invented. Most people can't figure out how to do multiplacation in their head, let alone solve a really dificult problem.

Thu, 11/28/2013 - 13:09 | Link to Comment moneybots
moneybots's picture

"Ingenunity died when Television was invented. Most people can't figure out how to do multiplacation in their head, let alone solve a really dificult problem."

Ingenuity is alive and well.  I was just watching an ad on TV for the pogo wisk.  What an ingenious little gadget.  One can multiply on a calculator, which has nothing to do with television being invented. Most people are not using complex math in their daily life.  Life itself has become a lot more complex than it was in the old days.  Try learning all the information that is available on the internet.  It will explode your brain.

Thu, 11/28/2013 - 14:02 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

There is a major difference between information and wisdom. Battery powered gadgets are useless without batteries. I merely used multiplication  as an example of the types of common mental abilitities that have withered since the age of television made people watchers of life instead of living life.

I can calculate my correct change in my  head when at a checkout counter. Most clerks can't.They are amazed a human can do what a cash register does. This is yet another example of the lack of intellectual rigor present in modern society.

Multiplication is not complex math, it is simply multiple addition. Trig is complex math.

Ingenunity though not dead is withering. Most people can't even understand the problem let alone solve it.

Look at yourself, you completely misunderstood my statement and attempted to use the pogo wisk as a viable argument about ingenuity and mental abilities in the modern era. I think that speaks volumes in and of itself. Trinkets are not tools and the internet is not knowledge unless you know how to transform data into information and information  into useable knowledge.

The internet is a resource, so are your ears and eyes. I would posit you have learned considerably more from your own senses than you have the internet.

Much of what is on the internet is wrong,misleading or worthless, that is not to say the internet is without merit. It simply means one must target their searches and verify and second source. Learning from the internet is like drinking from a fire hose.

Most people just want silly cat videos, because they can't be bothered with conscious thought. they want to deflect their thoughts rather than understand them. they want to fill their lives with empty moments spend with electronic devices eating overprocessed junk food. Fat dumb and happy isn't a law firm, its the American (now global) dream.

Thu, 11/28/2013 - 17:03 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

actually life has become a lot more simple: stupid people who don't do math can half get by.
Complex people who can do calculus, multiplication in their head & program scripts do 100x as well and the stupids(tm) can't understand why, they are that stupid.

Most of what's on the internet is porn, bad porn, LOL-catz having cheezburger and ponzi schemes, frauds, idiots who are pro-KKK or anti-muslim or anti-technology or anti-luddite or other flavors of nutbars. You can dismiss 99% of it and be smarter for the effort.

Thu, 11/28/2013 - 16:53 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

nah we's kin doo multi-ply kashun, jus cost more than single ply at tha store!

Thu, 11/28/2013 - 16:28 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

never had it, not running out.
No way humans can reach down into that mass without suicide in the first place.

Thu, 11/28/2013 - 12:51 | Link to Comment moneybots
moneybots's picture

"If the Fed does cut QE in any way, the frail psychology of the markets will shatter, and the country will come crashing down with it."

 

If they don't taper the country is going to come crashing down anyway.  Math is.  The Venezuela market is up 300%.  The government is now raiding stores due to extremely high prices.

Thu, 11/28/2013 - 12:54 | Link to Comment moneybots
moneybots's picture

" The third near miss was, of course, the debt ceiling debate, which has been extended to next spring.  America came within a razor's edge of debt default"

 

What we came near was a balanced budget, not default.  The government takes in enough money to pay debt obligations.

Thu, 11/28/2013 - 15:59 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

no, the intake of revenue is just enough for interest payments at low rates. Actually paying the principle back for maturing bonds is impossible without selling more bonds.

Thu, 11/28/2013 - 13:19 | Link to Comment moneybots
moneybots's picture

"A lot of cynicism was directed at the notion that the government might create a socialized healthcare initiative and then allow it to fail.  Of course, we now know that is exactly what they had in mind."

 

Single payer was the intention of Obama, not Obamacare.  If Obamacare failed and ushered in single payer as the solution, failure would be success to Obama.

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