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Paul Singer's "Vision" Of The Coming "Riot Point" And The Fed's "Formula For Destruction"

Tyler Durden's picture


We sympathize with traditional stock and bond investors, who are faced with extremely poor choices today. QE has distorted the prices of all traditional asset classes to such an extent that none currently promises a fair return with modest risk.... Because the dominant force in securities-price movements today is government policy, particularly the governmental buying of bonds and stocks, there is a vulnerability to all trading and investing prospects that cannot be assessed or measured with confidence... Since there is no history of Americans losing confidence in the basic soundness of their currency and their government, and since monetary policy today is so manipulative and large, it will be hard to parse the reasons for any particular market moves in 2014.

      - Paul Singer, Elliott Management

As always, perhaps the best periodic commentary on the state of the "markets" (even if such a thing has not existed for the past 5 years) and global economy comes from the person whose opinion has not been swayed by fly-by-night screechers and book-peddling pundits who fit in CNBC's octobox and who come fast and are forgotten even faster, and whose 37 year track record at Elliott Management, whose assets he has grown from $1.3 million to $23 billion, speaks for itself: Paul Singer.



Below are the key excerpts from his January letter.


Imagine how mainstream experts would have reacted to the following set of predictions in 2006: “In two years Lehman will be bankrupt; Merrill and Bear will be acquired in distressed takeunders; Citicorp, AIG, Chrysler, GM, Delphi, Fannie and Freddie will be taken over by the government facing possibly hundreds of billions of dollars of losses; and only 13 global megabanks will survive.”

The 2008 crisis had a lasting and profound impact on virtually the entire developed world. The financial system was brought to the brink of collapse; conditions were created for the radical monetary policy of the past five years and a severely distorted recovery; the plans and dreams of hundreds of millions of people were disrupted, in some cases catastrophically; and societal values were significantly twisted away from individual responsibility toward dependency. In fact, the consequences of the bubble, the bust and the policy aftermath are not yet in full historical view. Despite all the pain, policymakers
refuse to take responsibility for the bubble, the distortions of the bubble years, the ensuing failure to lay the groundwork for strong post-bust growth, the continued riskiness and fragility of the major financial institutions, the lack of appropriate policies to deal with the bust, or their total inability to deal with competitive and technological challenges in the labor market.

It is not that the path toward destruction was impossible to see. On the contrary, a number of people saw the disaster coming, even if they did not all see the timing or the shape of it. The strangest part of the whole series of events is that only a few large professional investors noticed the smoke and shouted “fire.” Policymakers, particularly at the Fed and including (importantly) Janet Yellen, paid some small lip service to the building risks, but they were wedded to their primitive “models” and had a completely inadequate grasp of modern financial instruments, leverage and the interconnectivity of financial institutions. Not only did policymakers fail to understand what was happening and how to deal with the crisis and its aftermath, but also many of those same policymakers, and ALL of the structures and assumptions that prevailed pre-crash, are still in place today. No apologies have been issued. There has been a great deal of partisan back-and-forth and successful lobbying, but sadly the financial system is still not sound. This may be impossible to prove until the next crisis, but you could have said the same about conditions leading up to the last one.

Policymakers were and remain asleep at the wheel. The lack of introspection at the Treasury, the Fed, Congress, the White House and other regulatory bodies is astounding. Instead of taking reasonable and conservative steps to strengthen the financial system and to reach consensus on what is necessary to generate growth, there has been a series of cronyist, ideological, punitive steps that have neither catalyzed the growth that this country needs nor made financial institutions safe. At the same time, the Administration has allowed (and encouraged) the Fed to carry the ball all by itself, heaping praise on it for saving the world at the very time that the White House is shirking its own responsibilities. The Fed’s “dual mandate” (to promote “maximum employment” as well as “price stability”) is bunk in today’s context. It seems as if the entire world is acting as if the Fed actually has a “total mandate” and the rest of the federal government gets to stand around and applaud its heroic efforts. In fact, what we have now is a lopsided recovery, gigantic price risk in financial markets because of QE, and unknown but potentially massive risks of inflation and the ultimate loss of confidence in the major paper currencies, all because the federal government is more interested in ideology than in getting the country back on track, and the Europeans are more interested in preserving the euro than promoting the prosperity of the sovereign nations of Europe.

* * *

For private investment firms like hedge funds, leverage in the modern world is a matter of semi-volition. True, it is much more readily available than in the past, but there are credit departments and initial margins limiting the size of positions. The big financial institutions, on the other hand, found themselves in an  environment starting a couple of dozen years ago in which leverage was entirely voluntary, subject to no real constraint because they were not required to post initial margins with each other. Since many of their positions were “hedges” in similar securities, they risk-underwrote those trades using models that projected very little possibility of generating losses. As a result, the entire system has become super-leveraged, super-interconnected and very brittle. Given the benefits of hindsight, we do not have to prove the proposition that the limits of leverage were exceeded in the recent past and that the system was improperly risk-managed by governments and by the managements of financial institutions. It is frustrating, therefore, that no meaningful de-risking of the financial system has occurred since the crisis. You will see a system primed for a rerun of 2008, perhaps even faster and more intense this time.



QE has created asset price booms, but historically high excess bank reserves are still generally not being lent, and monetary velocity remains relatively low. But last spring, we witnessed the first tangible sign that the Fed may be trapped in its current posture. The Fed cannot retreat due to excessive debt in the system, the fragility of major financial institutions (still opaque and overleveraged) and the prospect that a collapse of bond prices could lead to a quick, deep recession. This situation may be the early stages of a phase in which the Fed is afraid to act because it has the “tiger by the tail,” and perhaps is beginning to realize that the current situation carries significant risks. QE has not generated a sharp upsurge of sustaining and self-reinforcing growth thus far. What it has done is lift stock and asset prices and exacerbate inequality. If investors lose confidence in paper money, as evidenced by either a hard sell-off in one of the major currencies or a sharp fall in bond prices, the Fed and other major central bankers will be in a pickle. If they stop QE and/or raise short-term rates to deal with the loss of confidence, it could throw global markets into a tailspin and the worldwide economy into a severe new recession. However, if they try to deal with the loss of confidence by stepping up QE or keeping interest rates at zero, there could be an explosion in commodity and other asset prices and a sharp acceleration in inflation. What would be the “exit” from extraordinary Fed policy at that point? The current, benign-looking environment (low inflation and
stable economies) is by no means ordained to be the permanent state of things. At the moment, “tapering” is expected to get underway, but that prospect represents a tentative, slight diminution of bond-buying. It contains no real promise of normalizing monetary conditions. If the economy does not light up, the impact of another year of full-bore QE is impossible to predict. Five years and $4 trillion have created economic and moral distortions but very little sustainable value. Maybe the sixth year will produce the “riot point.” Nobody knows, including the Fed.


As we and others have said, the Fed is overly reliant upon models that do not account for real-world elements of instruments, markets and traders in the derivatives age. Models cannot possibly take into account unpredictable interactions among huge positions and traders in new and very complicated instruments. Thus, the Fed should be careful, humble and conservative. Instead, it is just blithely plowing ahead as if it knows exactly what is going on. Intelligent captains sail uncharted waters with extra caution and high alert; only fools think that each mile they sail without sinking the vessel further demonstrates that they are wise and the naysayers were fools. This is a formula for destruction. The crash of 2008 should have been smoking-gun evidence of the folly of this approach, but every mistake leading up to the crash, especially excessive and “invisible” leverage and interest rates that were too low, has been doubled down upon in the years since.


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Sun, 02/02/2014 - 18:23 | 4394226 Millivanilli
Millivanilli's picture

Riot point = no EBT, no SS, no Pension fund, no IRA.

When the trough runs dry, the shit hits the fan.  Pennies on the dollar settlement will wake Americans up.

Sun, 02/02/2014 - 18:30 | 4394248 Kirk2NCC1701
Kirk2NCC1701's picture

'True dat.'. But this won't/can't happen as long as there is King Dollar.

Sun, 02/02/2014 - 18:57 | 4394299 Stackers
Stackers's picture

For some reason I do not think the Fed is oblivious to what it is doing. I think it knows exactly what it is doing and the unvoibable disaster it is creating. They simply know that in a fractional reserve banking system THEY HAVE NO OTHER CHOICE but to continue inflating the bubble to keep the system from a deflation money supply collapse like happened in the early 20th century from all the bank failures and everyone's bank accounts getting Cyprus'd

Sun, 02/02/2014 - 19:10 | 4394326 macholatte
macholatte's picture


For some reason I do not think the Fed is oblivious to what it is doing.


All war is deception. Be extremely subtle, even to the point of formlessness. Be extremely mysterious, even to the point of soundlessness. Thereby you can be the director of the opponent's fate.

Sun Tzu


Sun, 02/02/2014 - 21:37 | 4394534 Soul Glow
Soul Glow's picture

Sun Tzu's advice does fall deaf on many parties.  The Chin themselves against the Mongol hoardes.

There are many theories in economics - as it is studied - that hold no water, yet no one questions these.  An example is the "rational consumer" theory.  The theory states simply that all consumers are rational.  There is nothing further from the truth.

The world has become accustomed to a way of life that is easier than ever before, and this due to cheap oil.  But due to a plataue in production rates and easy money policy this is about to change.  

At best, the Fed was set up to fail and under scope from cliques like Skull and Bones and round table groups like the CFR smart men like Krugman and Bernanke were let to run wild.  Bet at the end of the day, reality bites, and the house with no foundation of sound logic will come crashing down.

Sun, 02/02/2014 - 21:46 | 4394578 satoshi911
satoshi911's picture

Nobody intentionally wants to run a PONZI, or have to tell their grandchildren, "I oversaw the collapse of the USD"

This shit just happened, ... like the Tocqueville quote today ...

"When the USA people discover that they can vote for people to rob other people and make everybody feel rich, the USA will go full retard"

That time is now, ... slowly like the frog boiled the FED went from RATIONAL, to FULLY IRRATIONAL.

WHY? Because if you didn't give the politicians unlimited USD, then you were removed from the game.


Sun, 02/02/2014 - 22:33 | 4394670 Soul Glow
Soul Glow's picture

The Rockefellers would want to tell their grandchildren, "Do you know who brought the Untied States of America to its knees?  Not another Nation, it was us little Timmy Rockefeller.  It was us."

Greenspan, Bernanke, Yellen, and even Krugman - maybe especially Krugman - will go down in history as fools, yes.  Yet the monied elite, those with the power to move markets - like JPM, GS et al - they do as they will.  Until the game is over; and then they will need a new game. 

Do they want it to crash?  Let's ask a better question?  Do they have a plan for afterwards?  They likely don't, as Obama Nation will not survive a tax hike while the U-6 rate stays high (it is currently +14%).  Once the dollar gets sheared by gold, and it will, then the MIC will not be able to move rapidly around the oceans and onto land that they don't already occupy.  

And it isn't that the crash is coming - it is here.  Most just don't know because through QE stock prices were elevated, and the status quo only watches for news blips.  When they see the Dow is still rising they relax and go to the store.  They buy wine to go home with.  They drink themselves a new tomorrow.

But tomorrow as in a new day will never come.  Boomers will wake up with sore backs and necks, the youngins will wake up with sore necks and sore stomachs.  No one will see what is coming, because their ignorance, their complacency, got the best of them.

Sun, 02/02/2014 - 23:42 | 4394823 AlaricBalth
AlaricBalth's picture

The Fed clearly suffers from a cognitive expectation bias coupled with an illusion of control. It is a recipe for disaster.

Mon, 02/03/2014 - 07:57 | 4395270 Supernova Born
Supernova Born's picture

The better the article, the more bizarre the comments.

This was a kick ass thread that deserves forwarding.

Mon, 02/03/2014 - 08:44 | 4395325 Thomas
Thomas's picture

Amazingly clear article. Of course, when it happens nobody will have seen it coming.

Thu, 02/06/2014 - 12:09 | 4407888 forexskin
forexskin's picture

"There has been a great deal of partisan back-and-forth and successful lobbying, but sadly the financial system is still not sound."

the financial coup-d'etat would not have been possible without the conditions created by the 2008 crisis.

the financial system is not intended to be 'sound' in the common sense,  but to have usable instabilities that will precipitate the next 'crisis' and the predictable response - more control, more power for those in power, and a dumber populace.

things are going exactly as planned, including plenty of commentators saying 'all is improving', and the necessary few reality checking, hand wringing critics - who are saying in whispers "things are precarious - there might be another accident". this is bullshit.

the coming 'accident' is no accident, and we will see that when the dust clears. the new world order will be further along... and the rest of us will have been 'rationed' into our new, smaller cages.

Mon, 02/03/2014 - 08:03 | 4395279 GetZeeGold
GetZeeGold's picture



If we let amnesty go forward....we might as well launch the missiles.


The result will be the's that serious.

Mon, 02/03/2014 - 00:11 | 4394852 satoshi911
satoshi911's picture

Greenspan and Bernanke are professional LIARS, I mean 'trained' like LAWYERS,

Come on they're not proud of shit, ... they did their job, and now they retire in splendor, and you dont'.


Mon, 02/03/2014 - 00:17 | 4394884 Soul Glow
Soul Glow's picture

I'm proud to say, and I don't know the cause, because we were burnouts - we were the rough riders - all of my friends own many acres of land and farm it.

Once again, I don't know how it happened, but most of my best friends, guys that I have known since middle school, are farmers and own ariable land.

Everyone else can go fuck themselves.  I personaly told everyone to buy silver.  I personaly told of the ramparts of Krugmantism.  I told you that the dollar is worthless.

And now all my friends and I are farmers.  Now who is confident, and who fucking cares.

Mon, 02/03/2014 - 04:03 | 4395120 satoshi911
satoshi911's picture

Every farm I own in the USA is surounded by METH heads and now they're 3rd generation, ... yep you go live on your farm.

The FARM like everything else ain't what it used to be, the 'work' is now done by seasonal mexican ( by choice ), nobody would hire a white.

Other wise the farming is done by machine.

Rural people were once proud in rural areas, now they're 4th generation welfare, and all meth-heads.

Meth is the cheapest and easiest way to get high, funny all METH came from NAZI germany, and the Nazi's needed it to fight, and the hell's angels got the recipe during WWII and brought it back,

Essentially NAZI METH, was MTN-METH, Meth has been around since the 1880's.


Jimmy Rogers can talk about owning the 'farm' but sure as shit jimmy don't live there.


Mon, 02/03/2014 - 00:48 | 4394936 ejmoosa
ejmoosa's picture

And you can bet your sweet ass that these fellas have enough physical gold and silver set aside to survive a reboot, if they survive at all.

Mon, 02/03/2014 - 03:57 | 4395119 satoshi911
satoshi911's picture

I have been around these people now and researching this shit for almost 50 years.

I can tell you this,

They all have dual israel passports, and 90% that I have ever know of these types, when they retire they go to Israel, and live in a beach front condo, and then sit around all day with their own.

Seen it for years, now if there is a revolving door, its watching these people sell out the USA, retire to Israel and die, and then AIPAC ship's over new fresh blood to keep the PONZI going,... and this has been going on for a long fucking time, ... since the 1970's clearly before my own eyes.


Most politicians that I have peronally known, post retirement spend most of their time back in Israel,... life is better, food is better, they feel safer....


Mon, 02/03/2014 - 00:05 | 4394859 willwork4food
willwork4food's picture

Do they have a plan for afterwards?  They likely don't,


Bullshit. They employ the top tiers of ivy league schools and many other High IQ sold outs along with the best military (fiat) money can buy. To think this was not included in their strategies is silly, even if they have to resort to plan B. To think they don't have a back up plan in place is the height of folly. Our enemy is not something to be taken lightly, but it is not something to believe is unstopable.

Mon, 02/03/2014 - 00:09 | 4394872 satoshi911
satoshi911's picture

Damn, straight one of my relatives married into one of the richest family's in america,... can't say thier name, lets just say top ten.

I got to know the patricrchs and matriarchs fairly well.

One thing I learned early on is that all grand-children got 1 Million/year for life,.. setup as a trust in the 1930'.

I asked the matriarch, how do you do this?

She said that the family had people in EUROPE that had been doing this for 100's of years, that they always planned out ten generations.

It was fun, this was like early 1980's and I used to ask this old 90 year woman question about 2010, and she would have an answer, she actually read all the reports from the service in EUROPE. They actually wrote predictions for out 200 years and actually invested with such thinking.


So yes, the RICH are very different than the POOR, the poor barely even sees himself, or his own  children, and hardly plans a trust for ten generations in the future.


Since my relative married this family she had 5 kids, and now there are dozens of grand-kids, and yep, everyone one gets a million bucks a year ( indexed of course ) ...


Mon, 02/03/2014 - 00:58 | 4394952 Seize Mars
Seize Mars's picture

Uh, I don't think you know very much about money, do you?

Mon, 02/03/2014 - 03:53 | 4395116 satoshi911
satoshi911's picture

I will tell you what I know about money.

Carnegie the Steel man said it best in the 1800's

"Making money is easy, but keeping it is hard"

I can tell you this I still have my money.


Mon, 02/03/2014 - 07:07 | 4395232 negative rates
negative rates's picture

Just wait a few moments,................ and it's GONE!

Mon, 02/03/2014 - 00:19 | 4394893 Soul Glow
Soul Glow's picture

My point wasn't that they can't think of some no brain plan - my point was that their next plan won't fall short.  It will.  They are ignorent of real life; the PTB are igonrent of the daily grind.  They will lose control, and we will take it back.

Mon, 02/03/2014 - 00:04 | 4394865 satoshi911
satoshi911's picture

IMHO Rockefeller influence climaxed in the 1970's,

The torch was passed to Bill Clinton & Hillary,

Bill Clinton is the Bastard son of Winthop Rockefeller.


Rockefeller Foundation of course lives on and UN,IMF, ... are all ROCKEFLELLER creations.

All NWO instutitions today  have Rockefeller Roots.

All in Carrol Quigleys books if you care to learn about the real history of the rise of white-anglo saxon world power.

I predict that Chelsea Clinton (in her time), will rule the IMF, once the IMF-SDR takes over the USD as reserve-currency.


Mon, 02/03/2014 - 01:03 | 4394960 CPL
CPL's picture

"The beard is to the detriment of the Chin."

Sun, 02/02/2014 - 22:02 | 4394607 BandGap
BandGap's picture

Be extremely nonsensical, allowing time for people to point fingers at one another.

Sun, 02/02/2014 - 23:51 | 4394357 KickIce
KickIce's picture

There's a reason they passed the Patriot Act and the NDAA...  there's also a reason several federal agencies are loading up on ammo.  They know and are prepared to deal with it.

When Obama was campaigning he stated we need a national force as fromidable as our traditional forces and we now have Homeland Security.

Mon, 02/03/2014 - 05:41 | 4395179 Disenchanted
Disenchanted's picture

So Obama is/was the President in office when the Department of Homeland Security was created?

Jesus fucking wept!



Department of Homeland Security (DHS)


Formed in 2002 from the combination of 22 departments and agencies, the Department of Homeland Security works to improve the security of the United States. The Department's work includes customs, border, and immigration enforcement; emergency response to natural and manmade disasters; antiterrorism work; and cybersecurity.


edit: btw, in the OP it says "the dominant force is. . .government policy" ...well it seems to me that it's all been bankster/money changer's policies masquerading as govt policies, since at least 1913.

But hell I'm just a peon, what do I know...

Mon, 02/03/2014 - 08:24 | 4395290 KickIce
KickIce's picture

No, Bush did.  But for all the left's bitching as well as Obama's protests before gaining office he has done nothing but strengthen the act since being elected.

I agree that monetary policy is at the heart of our problems but I was responding to a post that stated that bankers and politicians were aware of the damage they were causing.  I was merely using legislation and ammo purchases as proof of this.

Sun, 02/02/2014 - 20:20 | 4394366 New World Chaos
New World Chaos's picture

They know exactly what they are doing:  Wrecking America and letting the elite crime families loot the real assets for pennies on the printed dollar.  See this article on how the Fed sold off Ft. Knox gold to the elite crime families at the official price of $42.22/oz when the market price was $175/oz:

Rockefeller's secretary blew the whistle.  She was suicided three days later.  This is what led to the phony whitewash peek at 5% of Ft. Knox's alleged gold stash.  Thanks in part to Rockefeller's "charitable" efforts with public education, the sheeple were mollified. 

America is the biggest threat to the New World Order.  It must be destroyed.  Even the existential idea of America must be destroyed.  They are planning a slaughter to echo down through the ages.  The DHS Checka is arming itself.  Are you?

Sun, 02/02/2014 - 21:43 | 4394573 satoshi911
satoshi911's picture

The NWO came from ameriKKKA,

Ford, Rockefeller, Hearst, BUSH...

They started all this back in 1910,... and really you could go back to civil war if you wish,...


Today the USA is a useful mercenary army to enforce the IMF-SDR onto the world.

The USA population are only viewed as useful parasites, so long as they play along.


The goal was always to rule the world, Rome's fault was that there were other countr's to the rich could flee.

The NWO wants to make sure there is no where to flee, but there is,...

IMHO the NWO is too busy with UKRAINE, THAILAND, ARGENTINA, the USA,... its spread too thin, to control the world.

Real world control the ASSHOLES ain't there yet, ... sure if they could have a UNIVERSAL BITCOIN, but they don't just as quick as they created bitcoin, the majority of the world said "FUCK BTC"


Eventually the NWO crowd will implode, and they'll be backed up to the USA, where the USA will once again revert to a penal colony.

I still say 100-200 million MUST perish in the USA, there is no way that the penal colony corporations will feed those mouths, when there is nothing left to steal from them, and humans are needed anymore for work,... there is no reason to keep them around.

Sun, 02/02/2014 - 23:46 | 4394740 New World Chaos
New World Chaos's picture

Generally right except for one big thing- This didn't start in America.  It started in Europe with an alliance of elite crime families:  Rothschilds, Lazards, Warburgs, Kuhns, Loebs, Schroeders, Schiffs and a few others.  This part of the crime syndicate is dominated by Ashkenazi Jews, who are actually Khazars.  They may have allied with older families steeped in the dark arts (think ritual abuse, satanism / luciferianism, human sacrifice, Moloch worship, possession, Babylonian money magick, and perverted teachings of ancient mystery schools).  This alliance was the Illuminati.  One of the first things they did was assimilate the Masons, so now they have that knowledge and power structure too.  The American crime families (Rockefellers, Bushes, Morgans, etc.) mainly came from WASP backgrounds.   They never had the wealth or esoteric knowledge of the older families, so for the most part they remained subservient.  The Rockefellers do want America to have a bigger seat at the table, but this is not due to patriotism, it is simply because most of the family's business involves America.

Here is a good description of the insidious tactics of the Illuminati.  A good read for anyone who wants to discover the real reasons for the decay of Western civilization:

America isn't even in the drivers' seat today.  It's a puppet state.  Dumb musclehead enforcer / tax donkey for the NWO which will destroy it.  Look at the above silverdoctors article- most of the gold went to Europe.  And look at the whiny, shit-stirring little country that dictates American foreign policy. 



Sun, 02/02/2014 - 23:56 | 4394845 satoshi911
satoshi911's picture

In a historical context I agree with everything you say.

Yes, the USA don't rule shit, ... its just the designated MERCENARY ARMY to be used by the PTB to rule the world.

If & when the US-MIL quits being a lapdog to the PTB, then the PTB will pull the plug on the US-MIL and it will implode in hours,...

All it takes is a few days of no $$$ and the US-MIL folk will run home with their tails between their legs.


Mon, 02/03/2014 - 00:19 | 4394891 willwork4food
willwork4food's picture

I doubt that will happen. If anything, they need a little muscle to get what they need. God help the other 250 million people in the US.

Mon, 02/03/2014 - 03:49 | 4395111 satoshi911
satoshi911's picture

Yep, but PTB can cut the $$$ to the US-MIL and they do have family and it natural for a man to run home and take care of his family.

I'm just pointing out the obvious, the PTB has the US-MIL by the ball's.

Don't kid yourself that they're going to be OUR savior, they're going to save their own ARSE, and they already have, and like cops, they don't care cuz they think the rest of us are all parasites.

If your not cop  or MIL, then your parasite.



Mon, 02/03/2014 - 08:34 | 4395310 GetZeeGold
GetZeeGold's picture



Ford, Rockefeller, Hearst, BUSH...


You forgot Obama.

Mon, 02/03/2014 - 09:26 | 4395362 satoshi911
satoshi911's picture

Obama is SHIT in the context of NWO


Obama was placed by AIPAC to put a black-face on killing all man, woman, and child in IRAN. Obama has failed.

Now comes HILLARY to do a man's job.


Sun, 02/02/2014 - 19:20 | 4394342 Jack Burton
Jack Burton's picture

Captain Kirk, I concur with you. All the monetary policy underpinng the USA  , via the Fed, is based on "King Dollar". The US central bank has printed so many dollars since 2008 that these reserve currency green slips of paper have moved to distort the entire world financial system. Witness the "hint of taper", and the crash of foreign currencies already underway in a number of nations. This is so complex, I can not pretend to understand how this is interconnected, but that does not prevent me from knowing it is interconnected and is massively disruptive to stable currency trading, and foreign central banks policies.

I for one, from reading Mish Shedlock's blog in particular back in 2006-7, was only too welll aware of the giant storm sweeping in from a black horizon, I bailed out of the markets totally by 2006 and sat in T-Bills, Inflation protected Savings Bonds, cash, and invested part of my savings into a new build home designed by me for efficient living in hard times. Thus the house is small, but very nice, designed to take maximum solar heat in winter from the low southern sun. Downsize and remain debt free as the collapse swept in. This worked for me as I took zero losses. BUT, I admit to never ever, nor did Shedlock either, guess at what the Federal Reserve and USG would do in repsonse to collapse.

The giant asset bubble took place with me on the side lines. I never even imagined that such money printing, QE and open market price manipulation, plus ZIRP could happen. So no profits for me from Fed asset bubble blowing.

What I do know, is just what the above article says, "nothing has been corrected, no revaluations have happened, no creative destruction has happened, market forces were deliberately short circuited to prevent the big asset holders, i.e. 1% 'ers, from taking the losses due them."

Main Street economy has continued to fall, especially small business has been ruthlessly gutted and former working class type jobs have been eliminated as a part of the US economy. What survives is the "Big Box Model" for retail and even services now. The last economy standing ,as if it was 1960, is the US Government, State, County and City government units, these have expanded like the "Big Bang Universe", and they survived 2008 largely intact. Even Medical Services is now slipping as the engine that drives the economy. We are left with a fake money printer's dream world economy. The 1% feast off of Fed printing and government has gone insane, becoming a world wide war machine spending US taxpayer's money across the globe to start wars and destablize nations. At home, an unprecidented represssive Police state is in place, cops are armed like Navy Seals, Tens of thousands of Americans take Uncle Sams generous fat paychecks for being big shot spies who track our every thought, word and deed, and dare to say we deserve this treatment because we might threaten the state.

Get real here. Money printing and King Dollar have replaced a former wealth producing economy. King Dollar is the key, it is all we have left. The FIRE economy IS the American economy. Spies, Cops, soldiers and war and repression on a vast scale, all funded by printers of dollars at the fed.

2008? Nothing was fixed, it was in fact all made worse. Next melt down is when society melts with it.

Sun, 02/02/2014 - 21:14 | 4394511 Spanky
Spanky's picture


For... a good rant.

Thanks. Was it good for you too?

Sun, 02/02/2014 - 21:30 | 4394542 satoshi911
satoshi911's picture

What you say is 100% true, and what I have said here all along.


Now deal with it,... where do we go from here? What is the goal?

For me, my argument all along, cuz I knew this was the case, was to run far from the fucking police state, cuz soon they'll not let you leave, unless you can prove that your money is ALL in the USA.

IT's only going to get worse,... these things never get better until there is a war, a REAL fucking RESET, but given that they will disarm, and given that the USA public has no balls and have been drugged for 3 generations, and TV pacified, ... there will be no revolution.


My personal guess is that like Rome in 500AD eventaully the world quits sending food, and this is why the IMF-SDR is so important, once the currency is IMF-SDR then the WORLD must accept it forever.



Sun, 02/02/2014 - 23:47 | 4394557 satoshi911
satoshi911's picture

How can wealth producing return?

In an economy when the best paying jobs are cops and prison guards, who can enter a house and rob, and judges will share the loot.

How and why should anybody risk investment?

The USA in this current model will go FEUDAL and quick.

Look no further than Orwellian movies, blade-runner, 1984, ... where city people are forced to the bus and live in box-rooms, and country people are all METH addicts that wander the hills for loot.


This model can and will go for a long time.

That said, and ZH folk always say "Its the same everywhere", no its fucking NOT, the world is still full of places where people love family, and work, and saving, and growing there own food over plundering other people.

While the USA is a nation of assholes, ran by assholes; much of the rest of the world, doesn't immitate the USA.


Mon, 02/03/2014 - 08:06 | 4395283 Hopeful Skeptic
Hopeful Skeptic's picture

While the USA is a nation of assholes, ran by assholes; much of the rest of the world, doesn't immitate the USA.


Your overly broad caricature of all U.S. citizens undercuts your argument and credibility. Where one lives in the U.S., and who one accociates with, will largely dictate how one fares in the context of an economic collapse. Your earlier characterization of all farmers as meth addicts is simply ignorant. I live in the heart of the country, and the majority of folks are fine, hard working, and caring people, who will have each others' backs.

I would also propose that the only reason some of these (apparently uniformly) altruistic people elsewhere in the world that you describe haven't plundered on a grand scale is that they have so far lacked the power and economic drivers to do so.


Sun, 02/02/2014 - 21:47 | 4394579 Soul Glow
Soul Glow's picture

"King Dollar" is an oxymoron.  The dollar is the most overused currency in the world.  It is based on the treasuries ability of a promise to pay, and that promise will never be fullfilled.  Everyone knows it too, but the institutions with trillions at stake want to suck the system dry as long as possible.

Watch as the dollar falls from grace, replaced by gold only after a short 50 year reign as "king".

Sun, 02/02/2014 - 21:53 | 4394585 satoshi911
satoshi911's picture

The NWO crowd ( bush, ford, rockefeller ) since 1910 carefully made the USD king, ... by murdering over 100 million people to date.

Dead Men don't lie, ... The dollar is king because it is covered by blood, and monkeys world-over fear the site of blood.

Anybody on earth that doesn't trade black-market in USD is killed, and anybody that doesn't sell their OIL in USD is killed, ... been this way since WWII, and before.


The USD is king,... I think those storys that Nigeria is selling OIL in YUAN, is just because there are so many chinese ex-pats in Nigeria.

When SAUDI starts selling its OIL in EURO, then let's talk about the USD not being KING anymore.

Sun, 02/02/2014 - 22:15 | 4394643 Soul Glow
Soul Glow's picture

Don't dictate a conversation.  We will talk about it now.

ALL fiat currencies are created unequal in the face of gold.  Gold moves markets; you may not see it because it doesn't happen in lockstep, but gold moves markets.

When oil is traded in gold, how about you come back to ZH.  Until then, take a break from dictating.

Sun, 02/02/2014 - 22:30 | 4394685 satoshi911
satoshi911's picture

I see for a Bangalore bot your almost there, ready to start the personal attacks, I will not.

Let me just quote MAO "ALL financial power behind all currency in the HISTORY of mankind, came from the barrel of a GUN".

GOLD don't have shit to do with anything.

It's been proven all along here on ZH, that since the first day a BANKER had GOLD in his vault to 'back his paper-currency', he was leveraging that gold 10 to 1, probably no time in recorded history has 'Backed by Gold meant anything, other than con-artist BULLSHIT".

Talk GOLD in your hand, but as soon as you mention paper-currency, or FIAT your talking SHIT.


This conversation doesn't have shit to do with GOLD, it has to do with WHY the "KING DOLLAR" is IMMORTAL, and he is IMMORTAL cuz he has murdered +100 MILLION people since 1910.

You are BOT, whose only purpose is to distract and drive good people away.  Toss in a little /sarc, and you think that all of a sudden you look 16 instead of 14, but for me /sarc always say's 12.



Sun, 02/02/2014 - 22:44 | 4394703 Soul Glow
Soul Glow's picture

I made nothing personal.  You tried to dictate conversation and I told you to get fucked.  I'll tell the same to anyone whose ego circumvents their literature.

Gold has everything to do with it.  China was no superpower under Mao.  They became a super power while they were buying massive amounts of gold over the last ten years.  

Once again, gold has everything to do with it.

Sun, 02/02/2014 - 23:53 | 4394837 satoshi911
satoshi911's picture

Gold has nothing to do with why the USA has gone full retard NAZI.

Gold has nohting to do why ameriKKKan's shop at WALMART and buy chinese crap.

Gold has nothing to do with the coming civil war to the USA.


The USA is a mercenary army for the IMF/NSA/CIA, its just a pool of warm body's aka cannon fodder, the mercenary army is NOT even paid in gold, they are paid in worthless FIAT.

Those that are not mercenary soldiers or cop's in the USA, are dead men & women, waiting to be sent to CAMP FEMA.

Not a fucking thing to with GOLD, all that could be stolen from the USA left, during the 1980's, today there is nothing left to steal in the USA, .. today its now time to prostitute USA citizens.

I predict that CAMP-FEMA will be full of JAP style "FUCK-CAMPS", where people are fucked to death while awaiting their death.

Mon, 02/03/2014 - 02:34 | 4395057 zer0concerns
zer0concerns's picture

I want to help you my new best friend. The war that started looooong ago was not is not now nor ever will be civil.
I commiserate with you my newest BFF(AND forever b/c when zer0concerns comes to sup with you zer0concerns brings the finest buffet of consequences to an immovable feast of gutter trash and and and the only seasoning is hunger and sweaty ball juice...where was I?....ohhhh yeh)...wait...I forgot what we were talking about. this thing is allllllll bs b/c Their's no f'ing ing way Tyler could fool soooo many dips in the highs. Hey, I respect the comments but I'm never Honda honcho pascal believe Tyler injured humanity by lying soooo frequently and consistently (how does Tyler write such wildly divergent articles one after the other without tiptop approval? Answer me chumps) where was I....ohhhh yeh....I have nooooo worries b/c I learned to stop worrying and live the financial bomb. Has anyone checked the prices for Ukrainians h strictly the cock pleasing ones) lately.
Frankly...whoa...ohhhh yeh. Guys/gals, stop your crying.
Satoshi has no worries. Like...ohhhh right you his/her britches wear the pants that you're handed. Where's let them eat rand? I would be up that dudes asshole following him if he'd quit his day job. Jack Burton to. Others...sure. Hey...lter/jb(not the only ones) why funny when nooooo joke can be got? Tell me where your asshole is and I'll wipe it with my tongue. I'm actually (prolly) older than let them eat rand but I'd follow that guys dump. I would. Jack Burton order me to x,y and let's do done agreed upon things we dint think should ever happen.

You're allllllll bitches. I've no worries. Tell me where you're at. Tell me. I love in a state of nooooo worry. Fuck your money.

Mon, 02/03/2014 - 03:45 | 4395106 satoshi911
satoshi911's picture

I hear you, and I concur that when  the western hairlip experiences the coming civil war, ... why in god's name didn't he escape before the shooting started?


How evil is the USA hairlip?

Read the Civil War story, Andersonville about the 'civil war prison' where men ate each other and fucked each other,... and that was just prison story's, there was nothing 'civil' about the USA civil war.

Mon, 02/03/2014 - 07:59 | 4395272 GOSPLAN HERO
GOSPLAN HERO's picture

The Federal POW camp at Elmira, NY was worse than Andersonville.

"Camp Hellmira"


Mon, 02/03/2014 - 08:12 | 4395287 GetZeeGold
GetZeeGold's picture



Gold has nothing to do with the coming civil war to the USA.


Which side are you going to be on again?

Sun, 02/02/2014 - 21:52 | 4394584 FredFlintstone
FredFlintstone's picture

Brilliant. I will now go puke on the feeling of what our county has become.

Sun, 02/02/2014 - 21:56 | 4394594 satoshi911
satoshi911's picture

If this is news to you, then your either a kid, or weren't paying attention. Not a damn thing, in the above comment that wasn't true in the 1950's.


Given that the majority on ZH see this is good, but me thinks its only cuz the maority here are not part of the 70% at the pig trough.

If you were a feeder ( cop, judge, politician, welfare HO ), ... then you would have another paradigm, "America is the greatest country on Earth",...

Move along.

[ Of course there are 100's of BOT's on ZH here that are on the US-Gov payroll, but that's another story, we just ignore their bullshit. ]

Sun, 02/02/2014 - 22:04 | 4394609 FredFlintstone
FredFlintstone's picture

I wasn't paying attention. Living, working, raising a family. All that bullshit. Pretty pathetic. Raised the next generation of slaves. Wondering what the next move might be.

Sun, 02/02/2014 - 22:24 | 4394660 satoshi911
satoshi911's picture

Fred, there's not a single thing being written today, that wasn't being said  in the 1930's.

H.L. Mencken, wrote extensively about the situation, and was only demonized by ADL ( early AIPAC ).

The idea that morons elect buffoons for public office, on the pretext of obtaining stolen loot. That Voting is just an advance auction of stolen goods.

Like today, we vote for OBAMA, who appoints YELLEN, who has promised to steal 'savings account' money from saver's and transfer to non-savers. Welcome to America.



Sun, 02/02/2014 - 22:54 | 4394722 FredFlintstone
FredFlintstone's picture

I love Mencken, but he might be shocked today. I just finished "911 Revealed" and am astounded. I know it sounds ridiculous, but I feel like a 12 yo girl who just had her first period and learned about sex all in 1 day. My eyes have been opened.
Help and guidance from the ZH community is appreciated.

Mon, 02/03/2014 - 01:32 | 4394990 falconflight
falconflight's picture

Thank you for your honesty.  I certainly can empathize.  I am reasonably 'well educated' and read, but admittedly I've only in the past few years really began to properly synthesize the information. 

Sun, 02/02/2014 - 22:54 | 4394725 National Blessing
National Blessing's picture

I don't see a huge crash.  I see endless recession.  We've got a ton of oldsters coupled with an offshored economy.  Food stamps for everybody.

Sun, 02/02/2014 - 18:35 | 4394264 Deacon Frost
Deacon Frost's picture

All you need is one of these to occur, (no EBT).

Sun, 02/02/2014 - 18:57 | 4394301 libsareajoke
libsareajoke's picture

EBT will continue forever, at some point it may buy "nothing" due to inflation.  thats when it gets interesting

Sun, 02/02/2014 - 20:10 | 4394414 in4mayshun
in4mayshun's picture

Agreed. Riots happen when the bottom 50% can't buy enough Cheetos and hot pockets with their magic cards anymore.

Mon, 02/03/2014 - 00:50 | 4394940 falconflight
falconflight's picture

Of course you're correct, but very unfortunately, the peasant class in Amerika are too ignorant to understand who's responsible for their station in life.  They'll murder the successful rather than the gov't pigs who have wrought this abomination.  jmo

Sun, 02/02/2014 - 20:24 | 4394439 Rafferty
Rafferty's picture

That's the 'solution'  They'll keep printing, monetizing their debts and debasing 'entitlements' through inflation.  Boiling the frog this way might forestall a peon revoltion.

Mon, 02/03/2014 - 09:42 | 4395388 forwardho
forwardho's picture

The capture and enslavement of EBT dependents.

When your very sustinance is dependent on .gov largess you have become a "slave" to the state. You cannot challenge those who are keeping you alive.

Cloward and Piven, Get as many people as possible taking from the state till it overwelms the system. When the system crashes (the intended result) starving people will agree to any demand or edict in order to be fed.

" For the good of the collective"  becomes a terrifying mantra.

Sun, 02/02/2014 - 20:07 | 4394409 zer0concerns
zer0concerns's picture

Ok, I'll say it. It needs to be said and I've no worry. F that. I'm putting it on the BIG BOARD for EVERYONE to see...learn to stop worrying and love the financial bomb.
Also this: you allllllll are a buncha fools if ya think one man can write, submit everyone of these articles. Sheez...look at some of the time lines for crying out loud. Some of the articles are posted within minutes of one another. Who ya trying to trick Tyler? it's obviously a bot guys and TPTB are laughing at allllllll of you. Get real people. This Tyler guy is another one of their creations that does their bidding while they're at Davos watching/making snuff films and snorting big dope off of Ukrainian bimbos big beautiful breasts. Sure, of course, I'd give anything to get balls deep in one of those Ukrainian babes but...
Still, I ain't falling for the okiedoke that one man can write allllllll that content. It's impossible.
Whatevs with it all cause if Satoshi ain't worried then I have zer0concerns.

Sun, 02/02/2014 - 20:13 | 4394426 Skateboarder
Skateboarder's picture

I'll save you before the flaming. Tyler is multiple people.

Sun, 02/02/2014 - 20:31 | 4394447 DeadFred
DeadFred's picture

Tyler may have multiple personality disorder and the ability to work on multiple posts and once using divergent writing styles but he is NOT a creation of the Davos crowd. We celebrate diversity by embracing our MPD brethren.

Sun, 02/02/2014 - 21:10 | 4394499 Skateboarder
Skateboarder's picture

Who owns ABC Media?

Sun, 02/02/2014 - 21:17 | 4394515 Spanky
Spanky's picture

Interesting question, that...

Sun, 02/02/2014 - 21:56 | 4394591 Soul Glow
Soul Glow's picture

The first rule of Fight Club is you do not talk about Fight Club....

Mon, 02/03/2014 - 08:14 | 4395289 GetZeeGold
GetZeeGold's picture



I'll save you before the flaming. Tyler is multiple people.


Word is they breed like rabbits.

Sun, 02/02/2014 - 21:18 | 4394517 satoshi911
satoshi911's picture

Goldman Sachs begat, and Goldman Sachs retains.

Goldman Sachs Bangalore - cmd & control, where english writing bot's are cheap.

Sun, 02/02/2014 - 21:44 | 4394576 Skateboarder
Skateboarder's picture

I don't remember if it was you, but I did find the accusation quite hilarious when LTER was called a paid writer from Bangalore.

Sun, 02/02/2014 - 22:18 | 4394649 satoshi911
satoshi911's picture

In the past 6 months here we have had '1' story bashing INDIA, and when we started getting hard core factual about that shit-hole (INDIA) things got real ugly here.

The BOT's ( tylers ... call them what you want ), ... they write english well, an they DISS all, but you will note they RARELY diss INDIA, and that is telling.

Mon, 02/03/2014 - 00:05 | 4394868 Soul Glow
Soul Glow's picture

India as a Nation-State is taxing gold.  Imagine that, taxing some worthless barbaric relic; I thin the governemnt stands on its own one leg, in the corner, wearing a dunce cap.

Are you counting coup?  Because you are using only one hand.

Mon, 02/03/2014 - 03:35 | 4395101 satoshi911
satoshi911's picture

if fonestar had a retarded brother, and that brother thought that BITCOIN was SPELLED 'GOLD', well then you would have 'soul glow'.

Mon, 02/03/2014 - 10:00 | 4395428 Calmyourself
Calmyourself's picture

I am not sure what LTER is, but before your mind is made up I would read the early posts from LTER.

Sun, 02/02/2014 - 20:37 | 4394454 zer0concerns
zer0concerns's picture

You have a trust worthy face and that's what I'm talking about...people helping people, yo.
That's what it's gonna take and stay gold, man. Stay gold.

Sun, 02/02/2014 - 21:44 | 4394577 Skateboarder
Skateboarder's picture

You got it chief.

Mon, 02/03/2014 - 03:45 | 4395107 bunnyswanson
bunnyswanson's picture

Seen the movie, Fight Club?  With Brad Pitt playing Tyler Durden's alter ego and Ed Norton as the low key nonconfrontational run of the mill nice guy.  And they start a fight club.  The bad guys lose every time.  There are many different people who come here and after several years of observation, I believe this site is quite accurate in assessments and projections.  Americans ability to provide themselves with the sustenance of life has been compromised, and they are facing a slow painful fall into a state of nothingness.  If you are suggesting they ignore this, you should be found and thrown down a sewer where you'd ordinarily find rats; it is where you belong.

Sun, 02/02/2014 - 20:48 | 4394469 satoshi911
satoshi911's picture

Mulitple Tylers there are, but the /snide, /sarc, and /stupid is same-same, which leads one to believe that to become an 'immortal' here on ZH, aka a TYLER one must be /sarc, /stupid, and/or /snide.

Just saying, ...

What's the old joke, "I would never belong to a club, that would have me as a member".


I only have one question, how old are these tylers? When will the grow up?

Mon, 02/03/2014 - 01:03 | 4394961 Muppetrage
Muppetrage's picture

What about arrogant?

Sun, 02/02/2014 - 23:07 | 4394753 imbrbing
imbrbing's picture

Please tell me you really arent that stupid.....

Sun, 02/02/2014 - 20:57 | 4394463 satoshi911
satoshi911's picture

How in the FUCK can the trough run dry?

Over 70% of the USA public feed at the trough,

The FED can print FIAT to infinite, and already does in secret.

THE NSA/CIA can print in parallel, every agency can 'print' and pay out.


The irrationality here is that you all assume that there is stilll a functional goverment and that the USA Congress distriubtes 'money' it doesn't.

This thing will end, but it will only end when it ends. Now the FED gives money to EUROPE(EURO-BRUSSELS), it gives money to CHINA(SHANGHAI), everywhere in the world the FED send's USD's.

The world love this shit, ... how in the fucking hell can this end?



Sun, 02/02/2014 - 21:58 | 4394595 Soul Glow
Soul Glow's picture

They can print, but they can't print forever.

Sun, 02/02/2014 - 22:16 | 4394638 satoshi911
satoshi911's picture

Romans ran their 'money' into the TOILET and it took over 500 years before,... it was even remotely over.

How long can the USA rule the world?

Longer than any of us will be alive.


The USA is FULL RETARD NAZI, if you have kids get them the fuck out of here, its clear that none of you boiled-frogs care about your own miserable lives, but note, the future of the USA will get much worse,

They will steal all, and then enslave and prostitute all, ... it always ends this way, when criminals take over the government.

Sun, 02/02/2014 - 22:48 | 4394711 Soul Glow
Soul Glow's picture

You are trying to make point after point but none of your points are related.  As to the Romans they were living in a very different time.  The term "News of the day" exists because we have TV, internet.  WHen Roma was in rule it took weeks, even months to send word.  Even in Nepoleans time it took awhile for news to travel.

Today I can find the gold price for what it is traded around the world right meow.  Right meow!  So take that 500 years and realize that the dollar was doomed the day Nixon took UST off of the gold standard.  It has been fifty years.  I think that is long enough.

Sun, 02/02/2014 - 23:08 | 4394754 Trucker Glock
Trucker Glock's picture

+1000 for meow

Sun, 02/02/2014 - 23:42 | 4394821 satoshi911
satoshi911's picture

Listen to a western hairlip talk about 'gold', at no time history did USA ever have any GOLD except when they stole the gold in the 1930's but then sold the GOLD.

When in the fucking hell will you quit talking about gold?


In asia everybody has gold, in the west nobody has gold.

Yet the western hairlips on ZH talk about GOLD like they have some, and they do not, and paper-gold is not gold. BTC is not gold, and USD is not gold.

"Gold is Gold, and you ain't got none" - Carlin


Mon, 02/03/2014 - 00:02 | 4394861 Soul Glow
Soul Glow's picture

Silver was the currency of the USA during the mining explosion of Mexico, during the gold rush, and afterwards.  Sure, the government asked for the gold in 1933, and Nixon demanded the gold in the 70's, but even though the 20th century US government hairlined gold, it does not mean that gold is not logicaly money.

Gold is money, and if you wish to debate the evil that occupies money, and thusly power, I won't fight it, but gold is money, and always has been.  And oil does run machines, and always has.

Your points are futile.

Mon, 02/03/2014 - 03:33 | 4395098 satoshi911
satoshi911's picture

To quote George Carlin once again

"Only gold is gold, and you ain't got none".


Sun, 02/02/2014 - 22:01 | 4394602 BandGap
BandGap's picture


Look at the pensions in Detroit. Bet you nothing happens when the same shit happens in Chicago and .......take your pick California town.

Sun, 02/02/2014 - 22:47 | 4394713 Soul Glow
Soul Glow's picture

I bet anyone whose pension was just stamped out is ready to riot, and their kids too.

Sun, 02/02/2014 - 18:25 | 4394227 _ConanTheLibert...
_ConanTheLibertarian_'s picture


Sun, 02/02/2014 - 18:26 | 4394234 I am Jobe
I am Jobe's picture

Will Obama Phone Work?

will ACA site be complete?

Will the Kardashians Disappear?

Sun, 02/02/2014 - 18:44 | 4394279 Son of Captain Nemo
Son of Captain Nemo's picture

Will the Kardashians Disappear?...

I sure as hell hope so, and with them the NBA, NFL, NHL and MLB!...

When this happens none of these things will be available, affordable or relevant to the "1%" that run them!

Sun, 02/02/2014 - 19:18 | 4394339 RafterManFMJ
RafterManFMJ's picture

Yup, NFL quarter back contract: 100K and a signing bonus of 10 bushels of squash.

Sun, 02/02/2014 - 20:26 | 4394442 Rafferty
Rafferty's picture

Plus a barrel of MacNuggets.

Sun, 02/02/2014 - 20:40 | 4394458 El Vaquero
El Vaquero's picture

Kitten McNuggets, that is. 

Sun, 02/02/2014 - 20:46 | 4394465 akak
akak's picture

In special garlic-ginger sauce!

Double lucky smack my lips goodness!

Mon, 02/03/2014 - 03:35 | 4395100 tenpanhandle
tenpanhandle's picture

May you suffer from hair balls.

Sun, 02/02/2014 - 20:11 | 4394421 logicalman
logicalman's picture

You forgot TBTF.

Sun, 02/02/2014 - 18:33 | 4394259 FieldingMellish
FieldingMellish's picture

Sunday night PM smackdown in the wind. China away, the rats will play.

Sun, 02/02/2014 - 20:13 | 4394424 in4mayshun
in4mayshun's picture

Bring it! I'm locked and loaded with fiat ready to pounce.

Sun, 02/02/2014 - 22:00 | 4394599 Soul Glow
Soul Glow's picture

Gold is marginaly higher after the open.

Mon, 02/03/2014 - 03:56 | 4395118 disabledvet
disabledvet's picture

that's why this is a story to begin with.
"the bill for Argentina just gets larger."
the folks here need to try and use google for a change.

There are no other Banks outside of New York you can turn to right now other than HSBC.
Of those New York Banks I see only two: JP Morgan and Citigroup.
Goldman is up to their eyeballs in euro debt.
Morgan Stanley is apparently struggling with a lot of debt overload.
Japan is getting roasted right now.
China looks about ready to dump.
Standard Chartered is only now big into China.
Russia has the Olympics.

Maybe the Riksbank can step in here...but I doubt it.

If you thought the terms were bad when Argentina defaulted on the 80 billion...wait until they need a hundred billion just to pay the interest expense. For one year.

That interest expense will be backed up by the US Navy I imagine.

Sun, 02/02/2014 - 18:33 | 4394260 Tinky
Tinky's picture

It really is quite fascinating to watch prominent, mainstream market observers and participants sound increasingly urgent alarms.

Still think that TPTB can keep the balls in the air much longer?

Sun, 02/02/2014 - 19:03 | 4394311 CrashisOptimistic
CrashisOptimistic's picture

Tinkdood, think about the scenario.

You go to sleep Sunday night and on Monday morn the market futures are -30%.  Circuit breakers trigger.  The market doesn't open.  Next night, another 30% down in the futs.  Again, no opening Tues morn.

Do you really think Tuesday night there would be no government intervention?  They would return prices to Friday by decree -- because no trading took place yet.  Even if it HAD taken place, they'd still do it by decree because the alternative is millions of deaths.

They will do ANYTHING to keep the balls in the air.

Only oil ends this.  Nothing having to do with numbers on a screen.  Those can be changed at will.  Oil scarcity that keeps food off shelves is beyond decree and only that can destroy what's left.

Sun, 02/02/2014 - 19:49 | 4394380 Arius
Arius's picture

you forgot the asteroid hitting ... sahara desert ... all doomsayers! get up and smell the coffee ... this country is relentless and always will come back strong ... my money is on this country!!!

Sun, 02/02/2014 - 19:54 | 4394387 akak
akak's picture

You're a fool and an idiot.

Sun, 02/02/2014 - 19:55 | 4394389 Arius
Arius's picture

and so are you sir!

Mon, 02/03/2014 - 02:54 | 4395075 kurt
kurt's picture

One of these guys is rubber and the other is glue

Sun, 02/02/2014 - 20:45 | 4394466 El Vaquero
El Vaquero's picture

If this country came back strong, it would not even be close to resembling what it is today. 

Sun, 02/02/2014 - 21:31 | 4394546 Singelguy
Singelguy's picture

You might be right, but there will likely be 50 years of hell first.

Sun, 02/02/2014 - 23:34 | 4394801 Trucker Glock
Trucker Glock's picture

"my money is on this country!!!"

What country are you in?



Sun, 02/02/2014 - 23:48 | 4394832 falconflight
falconflight's picture

I'm not sure of the empirical evidence upon which you are relying to make such  a statement.   The US is no longer the land of the free and its national government is filled with hundreds of thousands of officious baboons whom would do anything they're told to protect their livelihoods.  Trust me I know better than anyone posting here. 

Mon, 02/03/2014 - 09:10 | 4395351 Arius
Arius's picture

that has always been the case hasnt it?  still this country is resilient ... it is something in the DNA! at least i like to believe so...

Sun, 02/02/2014 - 19:57 | 4394391 Withdrawn Sanction
Withdrawn Sanction's picture

"The market doesn't open. Next night, another 30% down in the futs. Again, no opening Tues morn."

Howzat?  How do futures prices fall another 30% if the market never opens (presumably futures mkts would be shuttered as well)?  But even beyond those mechanics, while I agree they COULD decree prices, why assume "they" wish to prevent millions of deaths?  It's never occurred to them before.  Why would it now?

Sun, 02/02/2014 - 21:02 | 4394485 CrashisOptimistic
CrashisOptimistic's picture

It would be pitchfork fears, at one level, but at the more profound level it would be the phone calls from their campaign donors who are down 60% and want something done about it.

As for could . . . who would sue to stop it?  The opposition party who are getting the same donor phone calls?

Sun, 02/02/2014 - 20:12 | 4394425 logicalman
logicalman's picture

I'm waiting on the day their balls truly are in the air!


Sun, 02/02/2014 - 22:43 | 4394705 Borrow Owl
Sun, 02/02/2014 - 18:42 | 4394275 pendragon
pendragon's picture

tell us something we don't know

Sun, 02/02/2014 - 19:05 | 4394282 CrashisOptimistic
CrashisOptimistic's picture

Where is the morality when one party creates a substance from nothingness, in an entirely effortless way, and then lends that substance to another party -- and then demands that 2nd party, at great pain and suffering to itself, repay that substance with interest.

What possible morality can there be in such a thing?

Sun, 02/02/2014 - 19:05 | 4394317 Tasty Sandwich
Tasty Sandwich's picture

One of life's great questions:  would you rather stand for your moral convictions or own a yacht while pretending to care about poor people?

There actually is no objective morality though.

Sun, 02/02/2014 - 19:22 | 4394345 CrashisOptimistic
CrashisOptimistic's picture

But think of all the good I can do if I backstab that guy and get that yacht!


Sun, 02/02/2014 - 19:32 | 4394358 Tasty Sandwich
Tasty Sandwich's picture

If you consider owning a yacht to be good, then it is good, no matter what you've done to get it.

Also, let us not forget that the people who design and build the yachts have jobs because of the people who order yachts...

Sun, 02/02/2014 - 19:49 | 4394377 CrashisOptimistic
CrashisOptimistic's picture

Oh yes, and the work I provided for the surgeon and nurses to do the emergency procedure on the backstab victim.  They are employed because of me.

I'm a regular prince!  I am the poster child for the broken windows theory.

Sun, 02/02/2014 - 19:58 | 4394396 Pure Evil
Pure Evil's picture

The problem with sociopaths and psychopaths is that they feel no remorse for their evil deeds, therefore, morality is not their concern.

Sun, 02/02/2014 - 20:16 | 4394428 logicalman
logicalman's picture

Moraliy is something they vaguely remembering hearing about a long time ago, but were unable to understand.

Sun, 02/02/2014 - 23:17 | 4394772 Ms. Erable
Ms. Erable's picture

Morality, like laws, keeps the Little People in line; not applicable to members of The Big Club.

Sun, 02/02/2014 - 23:36 | 4394806 satoshi911
satoshi911's picture


In the 1990's, they called it "OUTCOME BASED POLICING"

Of course they never defined the 'outcome', but like 'outcome based eduation' many of us all along knew it meant to breed sheep and morons, aka mushrooms, feed people shit and keep them in the dark.

The OUTCOME of course for policing is FULL NAZI, NWO HITLER's 4th reich.


The PTB  doesn't fear, and the COP's know who butters their bread and pay's for their toys'

IF your NOT COP, then your little people. Enough Said.


I remember in the 1980's I had a gal who worked for me, and her father was a cop. Once she said to me, "I can't be a cop, I failed the test for medical reasons, so now I have to marry a cop"

I went on to ask her why? Why do you have to marry a cop? She said if  your not a cop, or married to a cop, or the child of a cop, then your nobody.

That was in the 1980's.


Sun, 02/02/2014 - 23:38 | 4394811 satoshi911
satoshi911's picture

Religion is also the same as 'morality', it was developed by the PTB to control the little people. Always been this way, and always will.

In the past the PTB got its authority from god or church, now all authority comes from the CARROT(USD), or the STICK(FEMA/DHS/TSA).


Sun, 02/02/2014 - 22:11 | 4394623 satoshi911
satoshi911's picture

Since 1990, if your NOT a sociopath, or a psychopath, then you cannot be a soldier, a cop, a judge, a FEMA campground host, an FBI agent, a DEA, anything

Even a dog catcher in post 1990's had too be a sociopath.

Sorry folks but this frog was boiled 20+ years ago.

USA law enforcement went FULL Israel in the 1980's and was largely completed in the 1990's.

If your NOT COP (judge,lawyer,gendarme,hangman)  in the USA, then you are PALESTINIAN.

Mon, 02/03/2014 - 00:22 | 4394896 Nimby
Nimby's picture

I can back that statement up.  I was a recruiter for the Army and it was one of our first pre-qual questions:

Are you a fag?
Are you a drug addict?
Are you a sociopath?

As long as they answered, no, no, yes, we signed them up for the ASVAB. 

Mon, 02/03/2014 - 04:33 | 4395136 zebrasquid
zebrasquid's picture

You're full of shit.
How many Marines do you know? I am surrounded by them, and they will turn on those that endanger our country, foreign or domestic, politician, goon or fat cat banker. They have honor to spare.

Mon, 02/03/2014 - 10:44 | 4395555 Z_End
Z_End's picture

Semper Fi

Mon, 02/03/2014 - 02:50 | 4395072 kurt
kurt's picture

At that point I'd rather have a yack.

Sun, 02/02/2014 - 20:02 | 4394401 Withdrawn Sanction
Withdrawn Sanction's picture

"There actually is no objective morality though."

You sure about that?  You're certainty might give you a clue....then again, maybe not.

Although, the yacht thought experiment was a very nice false dichotomy.

Sun, 02/02/2014 - 21:10 | 4394498 stocktivity
stocktivity's picture

We already know what all the bankers and politicians chose.

Sun, 02/02/2014 - 18:52 | 4394289 Truther
Truther's picture

Lots of lead, guns, and food. I'm ready. Come here kitty kitty kitty

Sun, 02/02/2014 - 19:02 | 4394303 Radical Marijuana
Radical Marijuana's picture

"doubled down upon in the years since"

There was nothing else that they could do!

There are no other possible resolutions to the established systems but for them to continue to be doubled down, until they drive themselves through psychotic breakdowns, because the ONLY thing that they can do within those systems is back up bigger frauds with more force, which still can never work in the longer term, because no amount of force can ever make those frauds become true.

More radical truth must be paradigm shifts from outside of the frame of reference of the established systems. Such paradigm shifts ofter result in perceiving things in the opposite ways to which they were previously perceived. Going through the full spiral of such paradigm shifts returns to where things actually were, but a full twist of that spiral ahead. The realities do not initially change, but the ways that those realities are perceived change dramatically, and often diametrically, which then gradually enables behaviors to be guided in ways which could change those realities.

There is no doubt that we are headed towards some unpredictable "riot points" because the FED does operate through a "formula for destruction," namely the runaway triumph of privatized fiat money, made out of nothing, as debts, which necessarily drives debt slavery to generate numbers which become debt insanities, because that system has a structure which MUST be doubled down upon for as long as it can, which is why, under Obama, the total debts increase more than under all previous Presidents, and why the total debts of Americans have been on a near perfect exponential growth curve since 1971, when the FED was able to blast off into orbit, without any remaining material connection to the Earth, on a trajectory which is never coming down (at least not coming down within its own frame of reference.)

Sun, 02/02/2014 - 22:46 | 4394707 WhyWait
WhyWait's picture

Unpegging the dollar from gold represented a conscious choice of bubbles over depression in 1971.  Not that they ever admitted to the public that depression was a possibility, but economists and policy-makers were fiercely determined that what happened in the '30's would never happen again.  Yet faced with deflationary pressures they have time and again liquidated safeguards and buffers put in place in the '30's and '40's, so financial "expansion" (aka bubbles) and ever more avenues for creation of debt could reflate the economy.

Now they are desperately looking for some new degree of freedom that will bouy the economy once again, but each new bubble gives the economy less lift than the last.  But as others have pointed out we are fast approaching the point where a new dollar of debt provides net zero increase in demand, at which point if not sooner bubbles will cease to work at all.

Truly, as RM says, we need to think outside the box now.  

Sun, 02/02/2014 - 18:59 | 4394304 JamesBond
JamesBond's picture

how does a government plan for riots?

oh,never mind.  i see it happening every day in the UsA




Sun, 02/02/2014 - 19:17 | 4394336 Radical Marijuana
Radical Marijuana's picture

As you see every day, jb, the government relies upon having staged false flag attack terrorism, in order to justify preparing for democidal martial law. From a personal point of view, the longer that is postponed the better, although the worse it will finally become when it happens. I believe it will take the collapse of the status of the American Dollar as the global reserve currency to trigger the events which could be described as the "riot point." Meanwhile, the American Dollar continues to be backed up by the American Military, so that the globalized electronic fiat money frauds are backed up by weapons of mass destruction.

The paradox is that what is stabilizing the accumulating systematic fragilities are the consequences of collapse having become beyond human comprehension, since what happens when a globalized system of electronic frauds, backed by atomic bombs, collapses into chaos has nothing at all to compare that to in human history. That could become trillions of times worse than things like the decline and fall of the Roman Empire.

Sun, 02/02/2014 - 19:22 | 4394343 BringOnTheAsteroid
BringOnTheAsteroid's picture

Purchase 1.6 billion rounds of hollow point bullets.



Mon, 02/03/2014 - 09:12 | 4395349 GetZeeGold
GetZeeGold's picture



No worries.....we put that guy on paid leave.


I assume he still is....I wonder where I can get a gig like that?

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