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200 Years Of Dollar Debasement

Tyler Durden's picture




 

Everyone has seen the 100-year US Dollar destruction chart; so here is the 200-year... a century without The Fed and a century with... which would you prefer?

 

Via Ralph Dillon of Global Financial Data,

Newton’s 3rd law states: To every action there is always an equal and opposite reaction. Sounds pretty simple right?

Except in Government, where for every action, the reaction seems to produce catastrophic consequences for such action. Yet inexplicably, the answer these days to everything seems to be more Government intervention and meddling. You would think that at this point we would have learned from our prior mistakes. Yet the meddling goes on and on and on….because it works so well.

Have you ever considered the true cost of all of this intervention? Think about it. Since the creation of the Federal Reserve in 1913, we have been in perpetual warfare, we introduced the New Deal which birthed Government programs, we eliminated the gold standard, we flooded the market with massive credit expansion, we accumulated massive amounts of debt and have now seen the Government take over 20% of our economy through healthcare. As if all of the prior interventions were not enough, in just the last 5 years, we have had shovel ready, bank bailouts, trillion dollar stimulus, QE 1,2,3,4, operation twist, unemployment benefits extended, car bailouts and crony capitalism that threw good money after bad. What we have gotten is more of the same. More debt, more political posturing and the complete destruction of the dollar and the purchasing power of it. With it, no one is accountable. Not the Government, not the banks, not the private companies but the citizens whose burden it has become to fund all of this intervention.

With the backdrop of other Governement ventures like the USPS and Social Security Administration, what can possibly go wrong with our latest intervention Obamacare? Whether you are for or against it, you have to recognize that this is and will be the mother of all Government interventions. With a horrific rollout, low enthusiasm and a general public that is either unaware or just ignorant to what is truly coming down the pipe, we can only hope that this time it will be different. But consider, that for every word that defines Obamacare, there are 30 more words that enforce it. With 109 new regulations and counting, you have to wonder if this monstrosity of intervention will finally be the straw that breaks the proverbial camel’s back. It surely has the making for it because we have never seen anything like it.

Cost since 1913? Well, the dollar has lost nearly 90% of its value and the purchasing power of that dollar has been eroded considerably.

Below is a chart that demonstrates the destructive quality of Government intervention to 1819:

 

 

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Thu, 12/12/2013 - 18:06 | 4241166 FoeHammer
FoeHammer's picture

Evil.

Thu, 12/12/2013 - 18:12 | 4241202 Looney
Looney's picture

Exceptionally evil

Looney

Thu, 12/12/2013 - 18:25 | 4241262 fonestar
fonestar's picture

It's going to make a magical hockey stick recovery any day now..... the deflationists told me so.

Thu, 12/12/2013 - 18:33 | 4241282 ZerOhead
ZerOhead's picture

Speaking of hockey sticks.... who turned the planetary heat switch to OFF?

Thu, 12/12/2013 - 18:45 | 4241292 nope-1004
nope-1004's picture

banker fraud.

 

Thu, 12/12/2013 - 19:16 | 4241470 bunzbunzbunz
bunzbunzbunz's picture

Rofl. Lying with charts 101. Compounding makes the later years look shocking, yet CPI nearly doubles in 4 year periods several times BEFORE the Fed. So the effect on the savers is the same in both eras.

Thu, 12/12/2013 - 20:18 | 4241642 NoDebt
NoDebt's picture

You mean the OTHER times in our nation's history when we floated fiat currencies?  Yeah.  You're right.

You learning yet?

Thu, 12/12/2013 - 21:00 | 4241745 Greenskeeper_Carl
Greenskeeper_Carl's picture

totally. plus all those times other nation-states have done it. it always works out great as long as we have enough central planning. except, i mean it didnt, but oh well AMERICA. this time is different, cuz, you know, 'murica

Thu, 12/12/2013 - 22:17 | 4241964 SafelyGraze
SafelyGraze's picture

why stop at 200

go back to 1777 to remember how we launched this enterprise

that was a nasty collapse

glad it can't happen again

because we learned our lesson last time

it's in the constitution

Fri, 12/13/2013 - 02:00 | 4242572 old naughty
old naughty's picture

Hell yea. I'll go with NO Fed.

But then Nixon did it with the gold and it has been all downhill since...tricky.

Fri, 12/13/2013 - 07:27 | 4242854 GetZeeGold
GetZeeGold's picture

 

 

 

200 years of banker wars........isn't this fun?

http://www.youtube.com/watch?v=5hfEBupAeo4

Fri, 12/13/2013 - 08:58 | 4242958 kralizec
kralizec's picture

...the next 200 should be a gas!

Oh, sorry...next 200 days!

Sat, 12/14/2013 - 19:28 | 4247134 NickVegas
NickVegas's picture

If I remember correct, the British were counterfeiting furiously. The war machine only considers non-slaves a threat. The first job of warfare is to impoverish.

Thu, 12/12/2013 - 22:17 | 4241972 bunzbunzbunz
bunzbunzbunz's picture

Please actually provide a point rather than childish humiliation tactics. Please explain what you mean by when we floated fiat currencies? 

Fri, 12/13/2013 - 01:42 | 4242541 NidStyles
NidStyles's picture

You are on the Internet dipshit, learn to use it rather than crying about everyone not holding your damn hand...

 

You kids are so damn helpless.

 

Fri, 12/13/2013 - 02:07 | 4242586 old naughty
old naughty's picture

Tell 'em Nid.

Head in sand, even now, sigh!

Fri, 12/13/2013 - 08:01 | 4242857 GetZeeGold
GetZeeGold's picture

 

 

Head in sand, even now

 

Dammit......yes we can......don't make us prove it.

 

P.S. I just lost my health insurance.....who do I see about that?

Thu, 12/12/2013 - 18:54 | 4241392 cossack55
cossack55's picture

Al Gore

Fri, 12/13/2013 - 07:33 | 4242861 GetZeeGold
GetZeeGold's picture

 

 

A hanging chad from total disaster.....it doesn't get any closer than that.

Thu, 12/12/2013 - 18:55 | 4241403 Argos
Argos's picture

Pretty nice in PHX today, 73 degs. F.

Fri, 12/13/2013 - 01:44 | 4242543 NidStyles
NidStyles's picture

I didn't know you were in PHX. I live in Queen Creek.

Thu, 12/12/2013 - 19:06 | 4241434 Husk-Erzulie
Husk-Erzulie's picture

Francis Sawyer

Thu, 12/12/2013 - 20:08 | 4241623 SilverRhino
SilverRhino's picture

Some bankers figured out how to charge interest on thermal energy.  

Thu, 12/12/2013 - 19:02 | 4241422 GVB
GVB's picture

Hey Phony Star, prepare for 2 day Bitcoin Debasement to NIL

Thu, 12/12/2013 - 19:46 | 4241565 Yen Cross
Yen Cross's picture

  Bitchits® looking heavy.  http://bitcoin.clarkmoody.com/

Thu, 12/12/2013 - 20:16 | 4241635 wallstreetapost...
wallstreetaposteriori's picture

Fonestar says to piss your money away buying 0000's and 11111's....  soon to be bitcoin pennyaires...

Thu, 12/12/2013 - 22:41 | 4242061 bunzbunzbunz
bunzbunzbunz's picture

Do you sell gold for a living, or did you just go into debt buying it on your credit cards?

Fri, 12/13/2013 - 01:49 | 4242555 NidStyles
NidStyles's picture

I buy it with debt back digital dollars that idiots like you pay me for services that you will never understand to the extent you think you do.

 

Thu, 12/12/2013 - 23:48 | 4242282 fonestar
fonestar's picture

fonestar says a lot of things.

Fri, 12/13/2013 - 01:55 | 4242568 Harbanger
Harbanger's picture

I sold when I told you that I was unloading BTC soon.  Sold 100 BTC  @ $1100,  bought back that same amount @650 + 3 monster boxes of canadian maples.  Life is good when you remove emotions from your trades.

Fri, 12/13/2013 - 07:39 | 4242864 GetZeeGold
GetZeeGold's picture

 

 

fonestar says a lot of things.

 

If anyone else had told me that I wouldn't have believed it.....but I figure you should know.

Thu, 12/12/2013 - 23:36 | 4242241 tmosley
tmosley's picture

Debasement. You keep using that word.  I do not think it means what you think it means.

Thu, 12/12/2013 - 18:22 | 4241244 Kirk2NCC1701
Kirk2NCC1701's picture

This needs to be shown to the voters and leaders of BOTH Parties, the next time they pitch us the virtues of their party or their leader.  It also needs to be held up to any ZH blogger/troll when they beat down the Dems or the sitting President -- as if the Reps or previous Presidents were/are any better.

We The People are dumb Sheeple, and the politicians clearly no longer have the motive to look out for anyone other than themselves and their TRUE sponsors: The Fed and its Shareholders.

Hedge and plan accordingly.  I do.

Thu, 12/12/2013 - 19:02 | 4241418 Serfs_Up
Serfs_Up's picture

Lol . You show that chart to a libtard ..you're called a racist...a neocon "conservative " would call you a commie bastard...

Fri, 12/13/2013 - 01:57 | 4242571 Pee Wee
Pee Wee's picture

When the only party is money spelled differently what do you expect?

Fri, 12/13/2013 - 02:19 | 4242603 FreedomGuy
FreedomGuy's picture

The supposition is that they are capable of understanding and they care. Have you seen how incredibly stupid some of them are? Joe Biden ring a bell...a dumb bell?

Presuming they understand it the second hurdle is to care. Leftists are interested in power and if it adds to their power they will like it. Many Republicans are comfortable with the status quo and don't want to rock the boat. 

Last, if they understand and they care even fewer know what to do about it or replace it with. There is only the Fed and central planning for them.

Thu, 12/12/2013 - 18:51 | 4241367 zjxn06
zjxn06's picture

Buy the dip!

Thu, 12/12/2013 - 19:43 | 4241560 BennyBoy
BennyBoy's picture

Spend, spend, spend.

NOW!

B4 its too late....

Thu, 12/12/2013 - 20:46 | 4241709 JLee2027
JLee2027's picture

Evil? Topless Feminists attack men guarding Church. NSFW. Warning, very disturbing.

http://www.youtube.com/watch?v=k939Lzq4V68

 

Thu, 12/12/2013 - 23:34 | 4242231 fonestar
fonestar's picture

I can never seem to find women like this in my town?

Thu, 12/12/2013 - 23:41 | 4242251 BandGap
BandGap's picture

If the common denominator is you, the problem might be you.

Fri, 12/13/2013 - 00:29 | 4242403 Kobe Beef
Kobe Beef's picture

Q: "What happened to all the good men?"

A: You did, bitch.

 

Fri, 12/13/2013 - 02:15 | 4242597 Pee Wee
Pee Wee's picture

I wonder how much any "aggressor"  would like picking curb out of their teeth.

Fri, 12/13/2013 - 00:04 | 4242330 scrappy
scrappy's picture

Lot's of counterfeiting in the 1864 period, no?

Who?

Why?

May explain the blip, oh and that (instigated) war.

Fri, 12/13/2013 - 05:35 | 4242758 limit_less
limit_less's picture

It is NOT evil. It is essential to the central banking business model. http://independence4walesdotcom.wordpress.com/2012/04/28/the-central-ban...

but then again, maybe it is evil.... http://independence4walesdotcom.wordpress.com/2013/11/20/what-is-deflati...

Fri, 12/13/2013 - 09:12 | 4242987 Watauga
Watauga's picture

Happy Birthday Fed!

R.I.P. USA.

The monied interests bought WW, put him into office, then proceeded not just to establish the Fed but to drag the nation into WWI, Depression, WWII, Korea, Vietnam, Central America, the Middle East, more recessions and depressions, and the horrific administrations of FDR, LBJ, RMN, RR, GHWB, Bill (the JFK Protoge) Clinton, W, and the most evil liar-in-chief among all liars-in-chiefs (yes, I leave out the strange, abbreviated presidencies of JFK, GF, and JC).  The only way to have accomplished all of this destruction and evil was from the inside.  The monied interests have spent 100 years patiently tearing down the "last great hope" because it was the only thing standing between them and permanent global domination.  They have won.  We have all lost.  Live free or die is all that is left.

 

 

Thu, 12/12/2013 - 18:07 | 4241169 froman5000
froman5000's picture

Meanwhile the US has become the most properous and powerful nation on the planet. What are we complaining about again?

Thu, 12/12/2013 - 18:10 | 4241188 Rainman
Rainman's picture

John Wayne is dead.

Thu, 12/12/2013 - 18:25 | 4241243 akak
akak's picture

I don't know what anyone saw in John Wayne --- ever since I was a little kid, I thought he was a piss-poor actor, and boring as Hell.  To this day, I cannot stand to watch any John Wayne movies.  He was as overrated as he was monotonous.  I bet I get a lot of down-votes for saying this, too --- "UnAmerican!".  LOL.

Thu, 12/12/2013 - 18:32 | 4241278 Rainman
Rainman's picture

Blasphemy !

Thu, 12/12/2013 - 18:36 | 4241308 akak
akak's picture

No, I'm just an iconoclast.

And John Wayne is one icon who I just love to clast.

Thu, 12/12/2013 - 19:44 | 4241564 gdogus erectus
gdogus erectus's picture

"John Wayne was a fag."

Thu, 12/12/2013 - 20:34 | 4241688 artless
artless's picture

"John Wayne was a fag."

I see what you did there. +1000 for the Repoman reference.

"Came to the door of his house in a dress"

Fri, 12/13/2013 - 01:02 | 4242474 Harbanger
Harbanger's picture

John Wayne understood and was dealing with Liberals before most of you Metrosexuals were even born. 

He was talking about the shit we're going thru today 40 years ago.

John Wayne on liberals

http://www.youtube.com/watch?v=btvSE6tVHzQ&feature=related

 

 

 

Fri, 12/13/2013 - 02:14 | 4242596 NidStyles
NidStyles's picture

Pretty sure you are more Metro than most. I know for damn sure you are closer to being a woman than you are to being me.

Thu, 12/12/2013 - 20:49 | 4241721 DaveyJones
DaveyJones's picture

the only decent movie emilio estevez ever did.

Fri, 12/13/2013 - 03:46 | 4242673 Phil Free
Phil Free's picture

'Freejack' was good, too. A little Ministry, a little Jesus Jones in there, some entertaining Jagger (and they filmed half the movie in my home town).

And watching Emilio Estevez impersonating Anthony Hopkins, voice and all, is a riot.

Thu, 12/12/2013 - 20:01 | 4241605 YHC-FTSE
YHC-FTSE's picture

I can't understand John Wayne's appeal either.  Must be an unique American affliction to idolise fat fucks portraying gun toting violent murderers. I usually whinced in sympathy with the horses he sat on, rather than the broken down kindly bigot characters he usually played. 

James Stewart on the other hand is one of my favourite actors from the same era. Someone who I secretly wish all Americans were like, but very very rarely are. I may be wrong about him, but he seemed to have true decency in life as well as on the silver screen. 

Fri, 12/13/2013 - 00:29 | 4242402 DaveyJones
DaveyJones's picture

the true american icon is more Harvey Keitel in the Bad Lieutenant

Thu, 12/12/2013 - 21:07 | 4241760 Miffed Microbio...
Miffed Microbiologist's picture

How risky and provocative of you to say such a thing. Are you to next claim Bob Dylan couldn't sing? I agree, I felt his acting ability was atrocious. I always wondered if it was schtick or he was mentally challenged.

Miffed;-)

Fri, 12/13/2013 - 01:46 | 4242542 Harbanger
Harbanger's picture

Hey AKAK.  If you haven't noticed, there are no cherished beliefs or institutions left to mock in this God forsaken time.  Unless of course, you don't fret being labeled and punished.  So any modern Iconoclast is only an extension of past bobbling idiosyncrasy.

Thu, 12/12/2013 - 22:05 | 4241915 exonomic halfbreed
exonomic halfbreed's picture

John Wayne was a stage hand with no real training nor ability who walked like a panzy, hence he could easily be the new idol for the totally emasculated, brainwashed american serfs.  Such serfs have no qualms with the genocide they have participated in from indian wars (slaughtering of women and children) to bombing dresden, tokyo, nagasaki,  hiroshima and countless other attrocities due to their racism bolstered by the blood thirsty cult most of them belong to.  It took a secret agreement between enlisteds on our side and the other in vietnam to stop the insanity of the vietnam war.  The deliberate dumming down of the american populace has produced one positive result, many of the tools of the elite are completely unprepared for the next step.  This means that the current financial war with asia (albeit invisible to most) will result in the movement of the financial center of the world and the collapse of the current empire.  However the nomenclatura will not really change.  This is the norm.  The center of financial power moves and the old empire is encumbered or worse.

Thu, 12/12/2013 - 22:10 | 4241950 dick cheneys ghost
dick cheneys ghost's picture

I looked up propaganda in the dictionary and there was a picture of John Wayne

Thu, 12/12/2013 - 23:16 | 4242175 Kprime
Kprime's picture

It always befuddled me why folks liked JW.  I couldn't stand his movies.

Thu, 12/12/2013 - 23:44 | 4242264 BandGap
BandGap's picture

I love John Wayne but I didn't down arrow you. I see your point. He was, however, a person who did a lot with a little acting ability, and was extrememly sincere in his efforts.

A man's man, and a guy you wanted on your side if the SHTF. Hard to find that anymore.

Fri, 12/13/2013 - 00:19 | 4242375 scrappy
scrappy's picture

You got that right Pilgrim.

Part of our mythos.

But it really comes from farther back in history in my mind.

Our Clans, Our Coat of Arms.

A good look back at real history would be wise.

"A Rock of Truth to Stand Upon as a People and a Nation together for Justice and Liberty and Responsibility, and Compassion in these days." - Scrappy (C) Right now.

- verses the sand we sink in today..

 

 

Fri, 12/13/2013 - 00:08 | 4242349 Vooter
Vooter's picture

"Heroes" are fucking stupid. That's why Americans like them so much--because Americans are FUCKING STUPID.

Fri, 12/13/2013 - 08:08 | 4242890 GetZeeGold
GetZeeGold's picture

 

 

Yeah.....we host the UN.....duh!

Thu, 12/12/2013 - 18:11 | 4241193 negative rates
negative rates's picture

$2 per/gal gasoline.

Thu, 12/12/2013 - 18:15 | 4241205 SgtShaftoe
SgtShaftoe's picture

I hope you're being sarcastic, because that's so messed up, I don't know where to begin.

Thu, 12/12/2013 - 18:31 | 4241279 MsCreant
MsCreant's picture

That is very improperous of you.

Thu, 12/12/2013 - 18:17 | 4241227 Stoploss
Stoploss's picture

LOL!!!

Thu, 12/12/2013 - 18:46 | 4241343 forwardho
forwardho's picture

Oh, HA HA HA!

And then he woke up and realized it was no longer 1950.

Thu, 12/12/2013 - 19:19 | 4241488 bunzbunzbunz
bunzbunzbunz's picture

From the downvotes you can tell that people here are bitter and sad. They make mistakes or have bad luck and need a scapegoat. Also, there are lots of gold/silver and bitcoin (and others I'm sure) marketers on this site that need to drive fear, anger, and lots of ignorance so their respective companies can profit.

Thu, 12/12/2013 - 19:25 | 4241501 El Vaquero
El Vaquero's picture

Bitter becuase fraud is the status quo, we are being spied on by our own government, the police are rarely held accountable when they violate the law, we cannot do business without having to worry about so many regulations that we cannot count them?  Why would anybody be bitter?  It's not like we're getting fucked here.  Oh, wait, maybe we are and that's why my ass is so sore. 

Thu, 12/12/2013 - 19:32 | 4241526 Exponere Mendaces
Exponere Mendaces's picture

Why do people keep bringing up Bitcoin? Is it something I should know about?

Thu, 12/12/2013 - 19:59 | 4241598 Yen Cross
Yen Cross's picture

      I suspect that based on your comments, people just assume that's the extent of your financial wherewithal. That, and your juvenal spin tactics.

Thu, 12/12/2013 - 23:16 | 4242176 Diogenes
Diogenes's picture

"Why do people keep bringing up Bitcoin? Is it something I should know about?"

Not for long. In 5 years everyone will have forgotten it except the ones who lost their shirts.

Fri, 12/13/2013 - 02:53 | 4242637 CCanuck
CCanuck's picture

Will they take bitcoin @ Myspace 5 years from now?

Fri, 12/13/2013 - 00:42 | 4242423 scrappy
scrappy's picture

Try "litecoin" it's less obese.

 

Or wait for the new to be "fast tracked" US Patent. TPP Stlylin ;-)

 

JPM Coin -

 

William? William? (WB7)

Thu, 12/12/2013 - 20:25 | 4241669 Meat Hammer
Meat Hammer's picture

bunz, your vague generalities, unfounded accusations and ad hominem attacks just scream paid troll...and a shitty one at that.  Try not to make it so obvious.

MDB would kick your ass and take your lunch money.  

Thu, 12/12/2013 - 21:19 | 4241791 bunzbunzbunz
bunzbunzbunz's picture

I think you misused 'ad hominem' since I wasn't attacking an argument. Is the word argument missing from your mind? It seems you can't actually make one - rather you call me a troll for disagreeing with people. Are you actually trolling by accusing people of trolling? Do the responses give you jollies?

Thu, 12/12/2013 - 21:45 | 4241881 Meat Hammer
Meat Hammer's picture

No.  Asian women give me jollies.  I've had yellow fever for as long as I can remember.  I don't know why because I'm a breast man and they're usually small-breasted.  Maybe it's their girl-next-door demeanor.  Hmmm...

What were we talking about?

Fri, 12/13/2013 - 08:10 | 4242891 GetZeeGold
GetZeeGold's picture

 

 

Heh heh.....someone got lost on their way to HuffPo.

Thu, 12/12/2013 - 22:35 | 4242035 acetinker
acetinker's picture

I think you need to look up ad hominem.

Thu, 12/12/2013 - 22:40 | 4242059 akak
akak's picture

I think it is Latin for "advertisement for hominy".

 

PS: I hate hominy.

Fri, 12/13/2013 - 01:12 | 4242505 acetinker
acetinker's picture

Ditto for "cream of wheat".  I strongly dislike (hate) that shit, too!

Thu, 12/12/2013 - 22:47 | 4242076 bunzbunzbunz
bunzbunzbunz's picture

Obviously I did. I don't read enough to know such fanciful phrases. That's why I questioned the usage...

Fri, 12/13/2013 - 00:03 | 4242325 acetinker
acetinker's picture

bunz, you're like a walnut- tough to crack.  But if you had looked up ad hominem as I suggested, you would know that it does not lend itself to a rational argument of issues.  Rather, it refers to a personal attack of the opposing party, indicating desperation on the part of the ad hominem launcher.

I'm fairly certain that no one here wishes you harm.  Yet.

Fri, 12/13/2013 - 00:05 | 4242332 bunzbunzbunz
bunzbunzbunz's picture

Oh, from what I read, it it using a personal attack to refute an argument. That's why I thought it was misused. Perhaps that was an expanded meaning.

Fri, 12/13/2013 - 00:09 | 4242348 akak
akak's picture

Boy, what the Hell are they teaching (or not) in troll school nowadays?

Fri, 12/13/2013 - 08:40 | 4242927 GetZeeGold
GetZeeGold's picture

 

 

I think it's called Common Core.

Thu, 12/12/2013 - 23:19 | 4242185 A is A
A is A's picture

Is that you, MDB???

Thu, 12/12/2013 - 19:21 | 4241490 AmericasCicero
AmericasCicero's picture

The government is the most lucrative and powerful force in the world.  The people, however...

Thu, 12/12/2013 - 19:21 | 4241498 Overfed
Overfed's picture

Pssst....hey.....the Kool-Aid has cyanide in it.

Thu, 12/12/2013 - 20:02 | 4241607 Zadok
Zadok's picture

And fluoride...

Fri, 12/13/2013 - 02:59 | 4242643 CCanuck
CCanuck's picture

Ya, but it has Electrolytes, plants love electrolytes!!!

Brawndo Kool-aid, everybody loves electrolytes!!!

Fri, 12/13/2013 - 09:05 | 4242971 Watauga
Watauga's picture

-64?  has to be sarcasm, right?  gotta be a + arrow!

Thu, 12/12/2013 - 18:07 | 4241172 Trimmed Hedge
Trimmed Hedge's picture

I prefer BigCoin™...

Thu, 12/12/2013 - 18:18 | 4241190 akak
akak's picture

I prefer big coins.

Thu, 12/12/2013 - 21:02 | 4241747 DaddyO
DaddyO's picture

I prefer big teats...

DaddyO

Thu, 12/12/2013 - 18:06 | 4241175 Took Red Pill
Took Red Pill's picture

Thank you, tricky dicky, for taking us off the gold standard. NOT!

Thu, 12/12/2013 - 18:14 | 4241200 negative rates
negative rates's picture

Possession is 90% of the law, he only had 10% ergo, default, pretend and extend.

Thu, 12/12/2013 - 22:56 | 4242107 acetinker
acetinker's picture

It's not like he really had a choice.  '71 may seem like ancient history to you, but it certainly wasn't the beginning of the end- that happened much earlier.  Exactly how much earlier is a topic of scholarly debate.  To me, we've been FUBAR since Wilson, but others would say he was in a similar position as Nixon.  Hard to argue that, actually.

The bottom line is this;  People are stupid and greedy.  They want more than their labor can afford.  Bankers know this, and use this against us.  It worked brilliantly as long as everything was expanding.  Now that we've extracted the plentiful resources, there is less and less "future value" for the bankers to bet on.  The population is still expanding, but credit is not.  This is why the fed is monetizing Treasuries and MBS.  It's also why we've not seen hyperinflation- 85bn/mo barely makes up for the missing "growth" in consumer credit.

You didn't ask for all that did you?  Guess I'm feeling generous.  Please feel free to ignore.

Thu, 12/12/2013 - 23:10 | 4242157 bunzbunzbunz
bunzbunzbunz's picture

This is the most logical 'we're all doomed' argument I have seen here! But you haven't blamed a class of people, so people here won't like it.

Thu, 12/12/2013 - 23:32 | 4242225 acetinker
acetinker's picture

Didn't realize I was arguing, but if it was such, it pre-supposes much awareness of banking and politics that few possess.  Kudos.  I don't mean to project "we're all doomed", though.  At some point, and I think I see ripples, the tide will turn away from financialization and begin again to embrace honest value.  A man can hope, can't he?

Thu, 12/12/2013 - 23:44 | 4242263 bunzbunzbunz
bunzbunzbunz's picture

Hope is for the weak!

Fri, 12/13/2013 - 00:40 | 4242425 acetinker
acetinker's picture

...and bitcoiners.

Thu, 12/12/2013 - 23:17 | 4242184 Diogenes
Diogenes's picture

Congratulations for being the only person except me who knows that Nixon was backed into a corner by 25 years of overspending by his predecessors.

Thu, 12/12/2013 - 23:26 | 4242208 akak
akak's picture

Just as Roosevelt (curses be upon him) was backed into a gold standard-repudiating corner by 20 years of Fed shenanigans.

Thu, 12/12/2013 - 18:07 | 4241185 jeffgroove102
jeffgroove102's picture

William Banzai should use this as a background, and then show richard nixon shagging someone in the ass in the foreground, because this is precisely what politicians do.

Thu, 12/12/2013 - 18:59 | 4241413 cossack55
cossack55's picture

Reminds of one of those great underground comix of the 60s.  Fever Dreams, perhaps.  Wonderful Nixon cartoon porn.

Thu, 12/12/2013 - 18:07 | 4241186 chdwlch1
chdwlch1's picture

On the bright side, it looks like they're almost done (as there is nearly no value left to abscond with)!!!

Thu, 12/12/2013 - 18:18 | 4241233 I woke up
I woke up's picture

The US better send a team over to Switzerland and "free" them into debasing their currency to make that graph look better

Thu, 12/12/2013 - 18:11 | 4241192 RaceToTheBottom
RaceToTheBottom's picture

Some of those hills should be in the Winter Olympics.  Thanks FED

Thu, 12/12/2013 - 18:14 | 4241201 CounterPartyVice
CounterPartyVice's picture

This is tradition ...

Thu, 12/12/2013 - 18:13 | 4241207 Sufiy
Sufiy's picture


Axel Merk of Merk Investments: Buy Gold for Protection as the Risk is Something is Going to Blow Up


 Gold is taking the pause after its recent advance to $1260, but US Dollar is testing the new lows after breaking below 80.00 yesterday. Equity markets are under presser today and the most notable rotation is JPMorgan going Net Long Gold according to the reports. http://sufiy.blogspot.co.uk/2013/12/axel-merk-of-merk-investments-buy-go... The Chase Is On: JPMorgan Chase Building Bitcoin-Killer

 

Thu, 12/12/2013 - 18:15 | 4241208 dick cheneys ghost
dick cheneys ghost's picture

tonite Im gonna have the francis_sawyer steak with a side of longsoupline

~~~

Thu, 12/12/2013 - 18:30 | 4241273 negative rates
negative rates's picture

Do you need last rights or last wishes before you depart?

Thu, 12/12/2013 - 18:41 | 4241325 forwardho
forwardho's picture

longsoupline, now there was a being who could turn a pretty phrase.

His colorful language was a pleasure to behold.

 

Thu, 12/12/2013 - 18:54 | 4241341 dick cheneys ghost
dick cheneys ghost's picture

here is a direct quote from the prophet himself........

 

''When you tell me Bernanke got hit by a fucking truck and the Fed has been ruled unconstitutional and burned to the fucking ground is when I'll look at fucking charts with some interest of "direction".

 

Fuck you Federal Reserve, fucking criminal sacks of hot stinking shit.''

 

http://www.zerohedge.com/news/2013-01-31/sp-clings-best-january-1989-cre...

Thu, 12/12/2013 - 20:40 | 4241703 artless
artless's picture

LongSoupLine huh?

How did I miss this guy? Kinda like his style.

Thu, 12/12/2013 - 20:59 | 4241737 YHC-FTSE
YHC-FTSE's picture

Francis really had a gift for a refreshing rant. 

He had explained his apparent enmity for "joos" on a number of occasions,  which I thought was both true and observational.  I wish he had played it better, not to get away with his views but because there are plenty of decent jewish folks who are not zionists, nor supportive of their antics in the banks and the Fed, nor Israeli nutjobs, but with views we probably would all agree with on a diverse range of economic and political issues. There's enough injustice and hate in the world without adding to it and giving a jewish guy who struggles with the rest of us a really bad time for what he is, well that's not right imo. 

It may only be a word or two, but suffice to say, "zionistbux" does not quite have the same impact as "joobux" that he was so fond of saying. Do I want Francis back? Hell yes. Do I want him to change his posts a bit not to offend those who don't deserve it? Down vote me in droves - I do. Decency costs nothing but is everything to me. 

Thu, 12/12/2013 - 18:14 | 4241212 dracos_ghost
dracos_ghost's picture

Down is bad right?!

Thu, 12/12/2013 - 18:28 | 4241271 Ness.
Ness.'s picture

Normally going down IS bad... unless it's your, um, lady friend, man.

Thu, 12/12/2013 - 20:32 | 4241683 RafterManFMJ
RafterManFMJ's picture

...I'm just helping her conceive, man!

Thu, 12/12/2013 - 18:14 | 4241215 akak
akak's picture

 

Cost since 1913? Well, the dollar has lost nearly 90% of its value and the purchasing power of that dollar has been eroded considerably.

WTF?

The US dollar has lost 95% of its value since 1913, and that is using the government's own lowballed CPI statistics --- in reality, its purchasing power loss has probably been right around 97% (i.e., overall prices today are ~30 times higher than they were in 1913).


Thu, 12/12/2013 - 18:18 | 4241236 RaceToTheBottom
RaceToTheBottom's picture

Sorry didn't see your post. 

I Rite Preeti slowish

Thu, 12/12/2013 - 18:22 | 4241247 El Vaquero
El Vaquero's picture

It's like saying that some guy was shot in the face with a 30-30 when in reality it was a 300 Win Mag.  Wrong, but everybody still gets the idea that the dude's brains are no longer contained in his skull. 

Thu, 12/12/2013 - 20:29 | 4241681 Meat Hammer
Meat Hammer's picture

Well, that's one way to look at it.

Thu, 12/12/2013 - 18:34 | 4241288 negative rates
negative rates's picture

But the quality of life has improved somewhat since then, yes at a great cost to our citizens. But it did have to be that way, conveniences and the need to have everything in the world available to anyone at any moment is what is causing all the problems. It was brought upon ourselves by ourselves and we have no one to blame but ourselves.

Thu, 12/12/2013 - 18:17 | 4241223 RaceToTheBottom
RaceToTheBottom's picture

"since 1913? Well, the dollar has lost nearly 90% of its value"

I thought it was higher, like 97% or 98%, even with the judicious manipulation of the data

 

Thu, 12/12/2013 - 18:17 | 4241226 SgtShaftoe
SgtShaftoe's picture

Just wait until the music stops and we find out how much gold is left, and who now has it.  No wonder the government is trying to put together a domestic army.  If people figure out the greatest theft in the history in the world, it could be messy. 

Thu, 12/12/2013 - 18:35 | 4241293 forwardho
forwardho's picture

The rape and pillage of an entire nation and it's peoples.

"America, where are you now?

Don't you care about your sons and daughters? And don't you know We need you now, We can't fight alone against the monster."

Steppinwolf saw and sang of this in my youth.

 

Thu, 12/12/2013 - 20:07 | 4241618 optimator
optimator's picture

And the average smurf just hasn't figured it all out yet. 

Thu, 12/12/2013 - 21:26 | 4241831 sunnyside
sunnyside's picture

muppetts > smurfs

Thu, 12/12/2013 - 18:24 | 4241258 Marc To Market
Marc To Market's picture

The chart and such arguments are only meaningful if you took the dollars and buried them.  Dollars are not gold.  Dollars generate an earning stream.  To pretend otherwise is disingenuous.  Give me the yield that has been accumulated, which is the way most people and investors would have experienced it, and one gets a completely different picture.  But of course, why let the facts get in the way of a polemic, especially when preaching to the converted?  Completely and utterly useless way of bending reality to fit one's argument.   Just think about it in our life times ?   On top of that, by simply showing the dollar, one misses that a similar chart can be made of any currency.  If you pretend they do not have yield stream, what is really happening is so distorted to be incomprehensible.  

Thu, 12/12/2013 - 18:39 | 4241311 RaceToTheBottom
RaceToTheBottom's picture

Yeah like when invested in Lehman

Fri, 12/13/2013 - 08:34 | 4242919 GetZeeGold
GetZeeGold's picture

 

 

Should have stuck with the smart money in Enron.

Thu, 12/12/2013 - 18:52 | 4241336 akak
akak's picture

Yeah, Marc to Kiss My Ass, and tell me how much my retired mother is earning in "income stream" with interest rates artificially and indefinitely held at zero while her cost of living is rising FAR faster than the laughably and insultingly lowballed 1% of the government's bullshit CPI?

For that matter, just how many investment possibilities have actually outpaced "inflation" (currency depreciation) over the last few decades?  Not many, or almost any, aside from some cherry-picked examples in certain cherry-picked timeframes (and if you even DARE bring up  the performance of "the Dow" {read: the constantly redefined Dow}, or the similar S&P, over a multi-decade timeframe as "proof" of how stocks have outperformed inflation, then we will know just what a liar you really are.)

You are a real sack of sociopathic shit. 

I hope you enjoy sucking Bernanke's cock --- you seem to, anyway.

Thu, 12/12/2013 - 19:40 | 4241542 bunzbunzbunz
bunzbunzbunz's picture

And this is where ignorance is bred. Sweety, please do some research on mutual funds. There are many of them that have been around for decades and have returned an average of 8-10% per year. There are many 'income' funds that are lower risk, meant for people in retirement to have a substantial portion of the assets in, that have returned 3-5% per year.

Quit listening to whiny ass people and do your own research. The 'redefining' of the the Dow and S&P is not nearly drastic enough to void the annualized ~10% returns over any 30 year period in the last 90 years. Do me a favor. Pick any 20 stocks (WITHOUT CHERRY PICKING LOSERS) that existed in 1970 as large cap and calculate the gains on an equally balance investment across those 20 companies.

Thanks

Thu, 12/12/2013 - 20:10 | 4241584 akak
akak's picture

 

Sweety, please do some research on mutual funds. There are many of them that have been around for decades and have returned an average of 8-10% per year.

More cherry-picking bullshit.

There are just as many mutual funds, or more, that have returned FAR less than your supposed 8-10% per year (which essentially none are doing today, by the way, or have done in a LONG time), or that have gone bust entirely.  But you conveniently overlook those.

There are many 'income' funds that are lower risk, meant for people in retirement to have a substantial portion of the assets in, that have returned 3-5% per year.

Yeah, and that is so wonderful for those invested in them, when 'inflation' (officially created currency depreciation) runs consistently at 6-8% per year, as it is today.

The 'redefining' of the the Dow and S&P is not nearly drastic enough to void the annualized ~10% returns over any 30 year period in the last 90 years.

Exaggeration, deceit and outright lies.  30 years ago, there were only NINE stocks in the 30 comprising thet DOW which are still in it today, with many of those that had been part of the DOW, but which were culled from it, having sunk drastically in value since then, or which have since disappeared entirely.

And there are any number of 30 year timeframes in which the major stock indices returned FAR less than an average annualized 10% return --- just for example, from 1920 to 1950, when holding the DOW would have yielded an average of less than 2% annually, or from 1955 to 1985, when it similarly yielded less than 5% annually (and when the average rate of inflation was FAR higher than that figure).

Bunz, your consistent anti-anti-Establishment message in this forum is crystal clear, but if you must shill for the corrupt and failing status-quo, at least try to do it without egregiously lying.

Thu, 12/12/2013 - 21:07 | 4241758 bunzbunzbunz
bunzbunzbunz's picture

Thank you for the argument. You got me to learn something.

So, to your 1st point: I'm confused...Most index funds or other diverse equity funds have returned 15-20% annually the last several years. Yes they are making up for 2008, but if you chart from 1980, the DJIA is up 1500%, or annually ~9% per year.

Your 2nd point: I truly believe your 6-8% inflation number comes from 'cherry picked' data. Not everyone suffers the same inflation, especially people that realize retailers show overpriced MSRP's while constantly offering ways to get discounts, rebates, etc. Yes people that are brand loyal or refuse to shop around are going to experience greater inflation.

Your 3rd point: This is where I learned something. The DJIA has a fancy little formula that keeps the value consistant when companies split, join, are removed. This makes sense, since the people that own the DJIA name have it in their best interest to make sure it remains a relavent economic indicator. I also only see one company that has completely disolved of the original 9. The others have been aquired, renamed, or spun off. So I don't feel like your point is relavent...YET..you might still have a point, but I don't know. I would LOVE to see a a breakdown of what happened to $1 invested in the original 9 over the years. Please link me if you find it.

Continuing...1920-1950 is a great example of poor annualized returns. The time period you are looking at is part of a small window where that is true. You are also ignoring the fact that the average investor would not invest a lump sum their first year and extract it all when they retire. The dollar averaging of steady month-by-month investing would have yielding quite a good overall return at the end of even that terrible period. Say they retired at that time, removing 50% of their money from equities, they would have gotten extreme returns on the remaining 50% as well.

My point is not for status-quo. My point is to question the dead-set ideology people have. No matter what your opinion is, you are usually wrong based on some perspective.

Thu, 12/12/2013 - 21:23 | 4241814 El Vaquero
El Vaquero's picture

 

Your 2nd point: I truly believe your 6-8% inflation number comes from 'cherry picked' data. Not everyone suffers the same inflation, especially people that realize retailers show overpriced MSRP's while constantly offering ways to get discounts, rebates, etc. Yes people that are brand loyal or refuse to shop around are going to experience greater inflation.

No, like many stats from the federal government, CPI is complete bullshit.  It does not include food and energy because they're "volatile."  Have you been to a fucking grocery store lately?  Holy shit!  Gas at ~$3.00 is also pretty shitty, as I remember getting pissed off at paying $1.10.  But, hey, if you don't need to drive to work or eat, it's all good, right?  Oh, and they also have bullshit weightings for how much other things, such as medical care, figure into the CPI. 

 

Or, you can go to the CPI-U, where in Feb. they do include things like energy and food, but they will often use seasonally adjusted prices.  Even though MoM, gas prices were either flat, or they increased a bit, they listed a decrease of 2% or 3% due to the seasonal adjustment.  Having actually gone through historical gasoline price data, I can say with great confidence that any seasonal influences on prices is lost in the noise, and thus seasonal adjustments are improper.  Of course, that is also ignoring that Feb. prices were the highest they have been during any Feb ever. 

 

So, yeah, prices are rising and your government is lying to you.  Get that through your fucking skull.  You'll be better off. 

Thu, 12/12/2013 - 21:38 | 4241868 bunzbunzbunz
bunzbunzbunz's picture

Yes. I pay quite good attention at the grocery store. I'm just not so much of an idiot to pay whatever they tag it for. If you look at staples like plain pasta, rice, beans, in-season produce, etc...you do not see the large price increases. And when you do, you should go to another store. I do. And I can easily feed 3 people for $30 a week when all meals are cooked at home. Home and rent prices stick to the average 2% inflation pretty well except when markets get too hot in certain localities.

Basically, the people that suffer higher than advertised inflation are those that refuse to adjust their living situation to fit evolving marketplaces. It's not to say it isn't shitty, but a lot of complaints are just that - complaints. When in doubt, refuse to buy overpriced shit.

I know I'm being lied to by the government. But I'm also being lied to by people who are anti-government. Rationality helps.

Thu, 12/12/2013 - 21:47 | 4241894 Miffed Microbio...
Miffed Microbiologist's picture

It is impossible to feed 3 people a week for thirty dollars. You are totally full of shit. If all you are eating are processed carbs you are not healthy or will face diabetes and obesity eventually. Our food budget is close to $900 per month for three and we only buy fruits, veggies, meat and some oats/ rice. We shop primarily farmers markets and a small family run health store grocer. None of us need any medication and rarely see a dr. Do you use pharmaceuticals? Do you live in USA ?

Miffed;-)

Thu, 12/12/2013 - 21:52 | 4241913 El Vaquero
El Vaquero's picture

The FSM diet:

 

Touched by his noodley appendage...RAAAAAAAMEN!

Thu, 12/12/2013 - 22:12 | 4241953 bunzbunzbunz
bunzbunzbunz's picture

I didn't say $30 was going to buy gourmet meals. 

$5 buys more pasta or flour (and other ingredients) for bread than 3 people should eat in a week.

$10 buys plenty of fresh or frozen (depending on season) vegetables for a week. Yes, 10 lbs is enough, but if you need more, there are usually cheaper options. Peppers, cabbage, canned tomatoes, etc... 

$10 buys enough fruit to keep you healthy. But I'll admit, no where near the recommended amount.

$5 can buy lots of beans, lentils and a couple pounds of pork or beef roast. I almost always see beef and pork for 0.99 per pound. You shouldn't be eating so much meat anyway.

I don't always choose to live on minimal foods, but it can be done. And it used to be the norm. People have gotten spoiled as hell in the last 20 years.

No I don't use any pharmaceuticals, yes I live in the US. I haven't been to a doctor in 13 years.

Thu, 12/12/2013 - 22:47 | 4242085 El Vaquero
El Vaquero's picture

 

I didn't say $30 was going to buy gourmet meals. 

 

In other words, substitution of goods is in play here. You have been hinting that akak was lying because he was using bigger inflation numbers than the official CPI, or even than the CPI-U, yet you are making a big point about how people don't want to change their habits because the other stuff is getting more expensive, and in the process, you have inadvertently made the point that maybe, just maybe, prices are going up faster than the CPI would indicate due to the whole substitution of goods thing.  Outstanding work!

 

$5 can buy lots of beans, lentils and a couple pounds of pork or beef roast. I almost always see beef and pork for 0.99 per pound. You shouldn't be eating so much meat anyway.

 

I'll eat as much meat as I please, and I have 300lbs of it hanging in my garage waiting to be processed. 

 

The cheapest, nastiest hamburger that I can find around here is well over $0.99/lb.  More like $2.00-$2.50/lb, and it's nasty shit.  It's over $3.00 for hamburger that you'd expect to not contain nasty things like lips and assholes and possibly horse meat.  Several months ago, it was over $5.00 for quality hamburger.  Pork butts typically run $1.89/lb-$2.29/lb, and they're one of the cheaper cuts as they take all day to cook due to the fat and sinew in them.  When I get onto the bbq forums, if somebody finds them for under $1.49/lb, they alert the whole board so that everybody who lives in the poster's area can snap up as many as they can, and those guys will fill up chest freezers with the things if they can when they find them at those prices.

 

Yeah, beans are cheap, and they also need something to complement their proteins as they are incomplete.  Corn, beans and squash are fairly complete, especially when meat or dairy is added. 

Thu, 12/12/2013 - 22:58 | 4242123 bunzbunzbunz
bunzbunzbunz's picture

You can substitute types of goods without substituing quality of goods. If beans, corn and squash can substitute for meat, providing the same quality of food, for a lower price, then your product value remained constant while your dollar cost has gone down. Thus an increase in meat prices does not always mean inflation. It may instead mean there is an imbalance in demand for meat when compared to other goods.

Also, a "complete protein" simply means the proteins are efficiently balanced. You do not need to eat any complete proteins to get all the protein you need, rather you would have to eat more if the protein is incomplete - as long as the food contains some of each essential amino acids.

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