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Spot The Real Liquidity Bubble

Tyler Durden's picture


Overnight the PBOC released the latest Chinese bank loan and liquidity data for the month of January. Those who have been following our recent series on Chinese liquidity measures will know that when it comes to the real marginal source of global liquidity, it is China that is the true unprecedented juggernaut, putting both the Fed and the BOJ's "puny" QE programs to shame (see "Chart Of The Day: How China's Stunning $15 Trillion In New Liquidity Blew Bernanke's QE Out Of The Water", "Some Stunning Perspective: China Money Creation Blows US And Japan Out Of The Water"). And January's data was simply the final exclamation mark in a decade-long series in which China's prosperity has been simply the result of an exponentially increasing amount of loan and liquidity creation by the Chinese semi-national and government backstopped financial system.

Here are the numbers:

Total Chinese loan creation in January was CNY 1.32 trillion, or $218 billion. While January traditionally sees a pick up in loan creation (and demand), the 174% increase in bank loans from December was an unprecedented number, was above the CNY 1.1 trillion, and CNY 250 billion more than a year ago. More notably, this was the largest monthly bank loan injection since January 2010. The last time China scrambled to inject massive amounts of bank loans was in late 2008 and early 2009 when the world was ending, and it was China's money that stabilized the global financial system far more so than the Fed's whose QE 1 did not begin in earnest until March 2009.

The far broader monetary aggregate, Total Social Financing, which is the most encompassing calculation of credit and liquidity created in China in any one month, rose to CNY 2.58 trillion. This was more than double the December's $1.23 trillion, and beat last January's CNY 2.545 trillion. In fact, this month's broad liquidity creation was the largest monthly amount in China's history!


Here is what Reuters had to say about the overnight data:

January’s lending surge aside, China’s central bank has consistently signaled in recent months that it wants to temper credit growth to slow a rapid rise in debt levels across the economy.


It has focused in particular on keeping short-term interest rates elevated to force banks to stop lending to speculators or high-risk borrowers.


Analysts polled by Reuters in January said they expect China’s economy to grow 7.4 per cent this year, an enviable performance for a major economy, but still the worst for China in 14 years. The economy grew 7.7 per cent last year.

Here's the problem: one can't put the January lending surge aside, as it came at a time when for the second time in six months the PBOC tried to taper, only to be forced to not only bail out its money markets, but is on the verge of a bankruptcy tsunami involving its shadow banking products, the first of which it also bailed out despite repeated warnings this time it means business and would let it die. In this context, the January number is precisely what it appears: the bank's logical response to a liquidity crunch as the Chinese regime finds itself in the same spot that the Fed has been in for the past 5 years - it must keep the monetary spice flowing, or else the party is over. And just like the Fed, and now the BOJ, so too does China not want to deal with the fall out if all it takes to created yet another quarter of increasingly subpar economic growth is another record of funny money conceived out of thin air.

The only problem is that it is becoming increasingly difficult to hide all the pieces of funny money, most of which result in bad and otherwise impaired loans, under the rug. And just to show the problem in its context, here is how China's banks created some 50% more in bank loans in January than the QE credit money created by both the Fed and the BOJ combined.

And finally, here is China's nearly half a trillion in total liquidity added to the system in just one month (some deleveraging, right?) looks compared to the Fed and the BOJ's much maligned and unprecedented uncovnentional monetary policy.


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Sat, 02/15/2014 - 17:10 | 4440264 Silver Garbage Man
Silver Garbage Man's picture

Duck and Cover.

Sat, 02/15/2014 - 17:33 | 4440336 Pool Shark
Pool Shark's picture



Keynes would be proud...



Sat, 02/15/2014 - 17:52 | 4440390 Herd Redirectio...
Herd Redirection Committee's picture

Shelter in place, everyone!  Shelter in place!

Sat, 02/15/2014 - 18:43 | 4440495 Unpopular Truth
Unpopular Truth's picture

But... but... they need the money! Why shouldn't they print it? /sarc/

Sat, 02/15/2014 - 19:15 | 4440591 Boris Alatovkrap
Boris Alatovkrap's picture

Real liquidity bubble is in bath with Boris after much delicious dinner of onion goulash.

Sat, 02/15/2014 - 21:46 | 4440961 deflator
deflator's picture

 Can I get the recipe for that onion goulash?

Sat, 02/15/2014 - 23:47 | 4441282 Oh regional Indian
Oh regional Indian's picture

Such terrible Engrrish in the Tyler part of this story. Why? long meandering sentences; using all, the wrong' punctuation:sentences left unfinished because ....


The Sunday Tyler underpaid?



Sun, 02/16/2014 - 01:57 | 4441507 jeff montanye
jeff montanye's picture

if only these writers responded to corrections!  you may overstate the case, but there are a couple of true run-on sentences, a "takes to created" where a "takes to create" is meant, "not only bail" when "bail" would be better, and a "but is" which should be "which are".  the latter two are in what is probably the most confusing sentence in the piece.

glenn greenwald, a native speaker, was quick to correct similar mistakes and his columns were better for it. 

Sun, 02/16/2014 - 16:46 | 4442742 TruthHunter
TruthHunter's picture

The Sunday Tyler underpaid?

Sunday Tyler overpaid in Scotch

Sat, 02/15/2014 - 19:04 | 4440556 mjcOH1
mjcOH1's picture

I predict good deals (or at least low prices) in the China mail order bride business within two years.

Sun, 02/16/2014 - 07:49 | 4441741 StychoKiller
StychoKiller's picture

Time to run and find some scissors...

Sat, 02/15/2014 - 17:53 | 4440392 OutLookingIn
OutLookingIn's picture

This is a total bullshit article, beneath ZH's usual quality.

What gives here? Bloomberg in bed with ZH? Or is it the other way round?

Forget about 90% of the global credit default swap derivatives market owned by the five big US TBTF's amounting to over $250 trillion notional amount.

Forget about the Fed's "backdoor" QE going to the Eurozone banks. In what amount? Only they know!

Forget about the US unfunded liabilities in the amount of +$200 trillion. Forget about no debt ceiling now.

Instead, lets beat up on China for printing! Forget about who now owns the gold now. Forget about the Chinese $+3 trillion in US Treasury reserves. Forget about who owns the globes biggest manufacturing sector.

This article is not worth the crap to paint it with!  

Sat, 02/15/2014 - 18:07 | 4440432 Tyler Durden
Tyler Durden's picture

You seem very confused by the concepts of "stock" and "flow" - that's ok though, so is the Fed.

Sat, 02/15/2014 - 18:44 | 4440496 Spigot
Spigot's picture


Sat, 02/15/2014 - 20:02 | 4440707 KickIce
KickIce's picture

Ooooh I know this one.  TBTF gets all the flow which in turn allows them to buy all the stock.

Sat, 02/15/2014 - 21:13 | 4440877 Terminus C
Terminus C's picture

My question is why did you chart Chinese loan creation vs Fed and BoJ printing?  Would it not be a better measure to go with loan creation vs loan creation?  The metric seems... off.

Sat, 02/15/2014 - 22:34 | 4441103 Tyler Durden
Tyler Durden's picture

Because as we explained, most recently in "What Shadow Banking Can Tell Us About The Fed's "Exit-Path" Dead End", in the US there has been no loan creation since Lehman, and the only outside money is that being pumped from the Fed, which as as we have explained over the past 4 years, has gone purely into asset, and not economic, reflation.

Sun, 02/16/2014 - 07:15 | 4441723 Disenchanted
Disenchanted's picture

There's no loans, only giveaways...if you're in the right club(re: George Carlin).

Sat, 02/15/2014 - 21:17 | 4440888 Cognitive Dissonance
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Tyler (or anyone),

Article after article explains how the Fed's liquidity has fueled the Emerging Markets. Yet China's liquidity injections are so much larger. Isn't some of that leaking into the EM's as well?

Sat, 02/15/2014 - 18:11 | 4440438 AGuy
AGuy's picture

"This article is not worth the crap to paint it with! "

This article has merit. It just shows that the Asia is home growing its own collapse too. I doubt in any sense that the Tylers are suggesting that the US isn't in a bubble or isn't heading for a collapse. There are those that believe investing in Asia is a sound long term investment. This article clearly shows that China is headed for a major fall too. It probably why China seems to be stirring up disputes with its neighbors. The "Ye olde Buracreats book" states that when insolvencely is near start a war to distract the masses and send them to be slaughterd in the war machine.

And,,,Stop your bitchn! ZH does a much better job presenting the news than all of the major media combined. If you don't like ZH, then go away. Go watch CNBS. Then you really have something to Bitch about!


Sat, 02/15/2014 - 18:53 | 4440522 TruthInSunshine
TruthInSunshine's picture

Outlookingin - Neither I nor anyone can predict precisely what shall become of the unfunded liabilities that comprise a huge % of the broader & more comprehensive measures of U.S.debt outstanding, I do think it's at least possible, and thus fair, to consider it an aggregate liability that gets paid in "pennies on the dollar," so to speak.

Contrast that with the mountain of septic debt that exists in present form in China, which can only be repaid via intervention by the Chinese Government (i.e. TARP/TALF style bailout, only much larger than what occurred in the U.S.), or which will, to a large measure, be defaulted upon (which the Chinese Authorities probably regard as preferable given the epic level of malinvestments & excess leverage within both their "real" economy and FIRE economy).

Sat, 02/15/2014 - 18:42 | 4440492 rqb1
rqb1's picture

Dude, I said this many times, china makes us look solvent.

Sat, 02/15/2014 - 18:09 | 4440394 TruthInSunshine
TruthInSunshine's picture

When I merely suggest to be people that China is floating on a literal ocean of yuan/debt/credit (all the same thing in a fractional reserve fiat system) they look at me with an inquisitive or confused sheep face.

You see...these consumers of financial main stream "news" bought the financial main stream media tagline that China is going to save the world from the next monumental economic collapse, when in fact, dear compatriot, China will be the spark that ignites said monumental economic collapse.

There is literally dozens of trillions of plants, factories and R&D facilities, along with office buildings, warehouses, distribution centers (built out both by Chinese AND multinational corporations) and other infrastructure (mainly "state" owned & controlled) that have made China the next Epic Capital & Capacity Surplus HQ of the World.

China alone has enough manufacturing capacity - right now - to saturate the globe with products and wipe out foreign industries in their domestic markets if trade barriers were to truly come down.

If you really want to blow the sheeples' minds, tell them it is the Chinese Government, itself, that will intentionally pop their bubble.

When China falls, the BRIC wall collapses, too (a process already underway, actually).

Sat, 02/15/2014 - 18:16 | 4440453 disabledvet
disabledvet's picture

the B and I have already collapsed.

Russia has Gaxpromia so that seems able to pretty much pay for everything.

The theory that the Fed will stop tapering is just that...a theory.
Certainly there are a lot of "interested parties" within the USA who really want to see the total destruction of the dollar here.

A lot of them are in Government apparently.
Talk about irony...

Sat, 02/15/2014 - 19:32 | 4440646 lewietheparrot
lewietheparrot's picture


I don't know.

It seems to me that China did exactly what one would have expected it to do when it entered WTO: it allowed the West to 'use it' in exchange for funding everythibg it needed---especially manufacturing that is more scalable than the planet will ever again see.

Do you think it was a bad deal?

A very poor nation without any means of internal funding borrows all that it needs to be king of the mountain from its former adversary and becomes the king of the mountain having leveraged all those foreign fiats to the nth degree.

Big military, manfacturing capacity for the planet, a much improved society, and real assers world-wide---not including the famous USTs and gold-----not a bad run especially when if your creditors push you too much----you just close your doors and take the phone off the hook.

I don't think any cat has ever played the mouse better

China won't fall because the rest will go first

I never understood how the bankers were able to get WTO approval for China with China's past   

Oh well, here we are now

Thanks for the post---it pulled this out of the back of this weak mind


Sun, 02/16/2014 - 01:26 | 4441460 jerry_theking_lawler
jerry_theking_lawler's picture

Talk about build out...I've driven halftway across this country since yesterday (thank to all that Global warming in ATL and CLT)....and I can tell you this....there is a McD's in almost every 1 horse town.


So, where is their growth going to come from in the future?? It is going to be almost 100% from same store sales....


This turd isn't going to float.

Sun, 02/16/2014 - 22:34 | 4443785 Spumoni
Spumoni's picture

Why ever do you think the FSA was formed? Nobody would imaqine that the feckless cretins we have elected to run the country could ever come up with a sustainability plan for keeping the pink slime purveyors in business.

Sat, 02/15/2014 - 20:10 | 4440726 Offthebeach
Offthebeach's picture

In order to flood you need to buy. A lot. First. Also margins are small or negitive, and it costs to ship. The whole import raw, make, ship, finance is pretty stretched and profit thin.

Did I mention everyone and his Chinese brother is borrowing to loan to ....well you know.

Stalin said quantity had a quality all its own, but China is off the charts, although if you need a specific number they, unlike our White House, will produce it for you.

( "Leave the gun, take the egg rolls." C.Leemenza )

Sat, 02/15/2014 - 20:19 | 4440748 Seer
Seer's picture

The pros have done what they've always managed to do- export inflation.  China got its lips stuck to the exhaust and are inhaling and they cannot stop until they pop.

Again, the Fed did a masterful job of managing to stay on top while driving everyone else under: yes, the Fed will sink, but I don't even think that they have any misperceptions about being able to continue the ponzi party forever (the mathematics of perpetual growth on a finite planet doesn't take the mind of a rocket science to understand).

It'll be interesting to see how the deck chairs are arranged as it all sinks...

Sat, 02/15/2014 - 21:36 | 4440931 hobopants
hobopants's picture

Central bank one "Well I can print a gigillion dollars" Central bank two "Oh ya! well I can print..."


Sat, 02/15/2014 - 17:49 | 4440371 Bokkenrijder
Bokkenrijder's picture

Where is Jim I'm-teaching-my-daughter-Mandarin Rogers?

Sat, 02/15/2014 - 18:34 | 4440478 falak pema
falak pema's picture

taking  his daughter to see Chinatown and to learn to be patient when the guy goes for a smoke during a poke drill. 

Sat, 02/15/2014 - 19:09 | 4440577 semperfidelis
semperfidelis's picture

I think we have the wrong perspective . For China 100 million people is a rounding error. If we look back at the last 2000 years for the better part of the two milenia China was one of the richest places on earth. There is more to this story than just printing of currency.

Sat, 02/15/2014 - 20:20 | 4440753 falak pema
falak pema's picture

middle kingdom lost in opium wars.

Sat, 02/15/2014 - 17:54 | 4440395 U4 eee aaa
U4 eee aaa's picture

sweet and sour duck

Sat, 02/15/2014 - 19:41 | 4440664 mt paul
mt paul's picture

China has gone 

full Fed..

Sat, 02/15/2014 - 17:17 | 4440284 gann1212
gann1212's picture

bullish . btfd

Sat, 02/15/2014 - 17:17 | 4440285 Seasmoke
Seasmoke's picture

Looks like War....

Sat, 02/15/2014 - 17:17 | 4440287 proLiberty
proLiberty's picture

Ludwig von Mises said that creation of money out of thin air no matter what the means, creates the "appearance of prosperity", but it can only be sustained for a limited period, after which economic reality returns and I might add, when asset prices fall to their value in terms of yield.

I think this is the first time in history when the central banks in all the major economies of the world, Europe, the US, China and Japan have co-inflated. The sobering fact is that leverage in a fractional reserve banking system works to the benefit of banks on the way up, but is devastatingly powerful against banks on the way down. This will not end well. Look out below.

Sat, 02/15/2014 - 17:29 | 4440321 imapopulistnow
imapopulistnow's picture

Something very strange is going on globally.  Massive global money creation yet without high levels of inflation.  Why?

Sat, 02/15/2014 - 17:43 | 4440344 akak
akak's picture

The water often recedes at the shoreline just before a tsunami as well. 

Just ask all those Thais and Indonesians who went out to pick up flopping fish on the suddenly (and very temporarily) dry seabed back on December 26, 2004. 
Oh, wait, you can't --- they're now all dead.

Sat, 02/15/2014 - 17:52 | 4440378 economics9698
economics9698's picture

While the money has been created most of it is in stocks and other financial instruments, meanwhile the paychecks have been dwindling and more have gone on government aid.  The bankers know there is a delay to new money hitting Main Street, usually five years or so, and they have been gorging themselves on commodities, land, whatever they can buy while the money has value.

Same shit as during the Great Depression when prices declined for 4 years and then rose for 4 years because of all the Fed printing.  This time around the main difference is the Fed never bothered with deflation, they printed so much, for so long the CPI never had a chance to go negative.

This puts more money into the pockets of the elites, the Fed did learn from 1929-33, yes they learned how to steal more from Americans.

The inflation will come, how do I know?  The money is printed, the money is out there, it cannot be retrieved. 

As long as there is no real recovery, as long as millions go from a paycheck to food stamps, as long as inflation is single digits, the game goes on.

Sat, 02/15/2014 - 18:19 | 4440409 Dick Buttkiss
Dick Buttkiss's picture

On the other hand, a commodity like gasoline could plunge to, say, $1 due to the lack of demand in a collapsing economy but still be unaffordable due to faster-falling wages and skyrocketing unemployment.

No matter the nominal price, in other words, if you can't afford it, you can't buy it.

Sat, 02/15/2014 - 18:23 | 4440454 falak pema
falak pema's picture

In a deflationary world cycle the first to go is renewables (unless subsidized for eco reasons (climate change) by government). The second to go are Tar sands, Tight oil and frack gas as they be marginal cost higher than conventional. 

MENA oil and gas stays king pin in face of deflation scenario as the cost to produce is still lowest (not in Russia).

But in ME, if you cut back their arms purchases and Dubai type investment plays, the inherent cost of oil production stays low. 

We are talking about B/E around 120 $ Brent sale price for tight oil and 80 $ for Russia or deep sea Brazil but 20-30 $ in ME. 

Sat, 02/15/2014 - 21:11 | 4440872 Seer
Seer's picture

It's amazing how many people don't get this.

I've figured that oil prices would get ramped down but then would have to climb back up in an attempt to get margins out of negative territory (which would only put more downward pressure on demand).  This would be the only general "investment" advice I'd likely offer.

Sun, 02/16/2014 - 14:57 | 4442484 noguano
noguano's picture

Is this deflaion/inflation?  Still learning.

Sat, 02/15/2014 - 19:00 | 4440545 MisterMousePotato
MisterMousePotato's picture

Consider the following:

1. About 2.3 trillion dollars in excess reserves are sitting idle with the TBTFs;

2. Foreclosures picked up dramatically in January (57% in California, for instance); and,

3. Wells Fargo just lowered its lending standards.


Sun, 02/16/2014 - 00:36 | 4441367 TruthInSunshine
TruthInSunshine's picture

This is the explanation as to why inflation isn't ripping in the U.S.

The banks are being paid to suck up and hold tight trillions in excess reserves.

Despite all the proclamations that lending standards are easing and will continue to do so, how can this be true and a sustainable reality when the economy isn't growing in real terms, when consumer credit (aka outstanding debt) is now at an all time record high of nearly 3 trillion USD, when real wages are stagnant at best and more likely declining in real terms, when U6 is 18% at a minimum, when the broadest measure of the labor participation rate is the lowest % since the economic doldrums of the Carter era, when a massive % of Americans have impaired credit ratings, and when probably at least 35% of banks are insolvent and only still operating due to the suspension of honest mark-to-market asset valuation standards & the aforementioned plying of cash in the form of interest paid on excess reserves by the Fed, which has supplanted the traditional/historic role of banking profits, to wit, lending money at a higher rate of interest than their borrowing costs, with confidence that a vast majority of such loans will perform (and not default).

The traditional role of the banking sector and bank profit model has been absolutely and completely broken by the new economy and radical interventionist central bank monetary policy.

Sun, 02/16/2014 - 22:54 | 4443864 Spumoni
Spumoni's picture

The only place I see which isn't experiencing inflation is the CPI. Fuel and food, on the other hand, have added between 30% and 55%+ respectively, since 2009. Where prices have not risen for certain goods - including a great many processed foods- cheaper ingredients are often the reason why.

It sounds nice when the government says there isn't any inflation, but much of the money that consumers would be able to spend goes to getting to and from work and buying food. Big Oil gobbles up some 140 billion dollars every quarter (approximate total profit). How many years can an economy sustain that sort of vaccuum pressure on its money supply?  Add to that the sad fact that so few companies control so much of the food supply, and must please the almighty shareholder every quarter as well. What little of QE ever reaches the street doesn't stay there long enough to support any growth. It just goes back to Wall Street, which does nobody any good besides those who work there.

We are already in an inflationary spiral. When the check comes for the party, there will be hell to pay.

Sat, 02/15/2014 - 17:53 | 4440388 NoDebt
NoDebt's picture

Velocity of that money (how many times it changes hands in a given period of time) is in the toilet.  That's why.  And that's the only reason why.

Sat, 02/15/2014 - 17:55 | 4440401 economics9698
economics9698's picture

Reverse the curve M2/GDP and what do you see?  Plot the median income on the opposite axis.  hmmmmm

Sat, 02/15/2014 - 19:19 | 4440596 QQQBall
QQQBall's picture

Enough with the tsunami bullshit already. 

Sat, 02/15/2014 - 20:19 | 4440751 akak
akak's picture

That's right, because "it can't happen here".

Also, "this time is different".

And don't forget, "The Fed has everything under control".


(I could also add "Santa Claus is coming to town".)

Sat, 02/15/2014 - 20:30 | 4440783 Jena
Jena's picture

"This won't hurt a bit."

Sat, 02/15/2014 - 20:36 | 4440797 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Turn your head and cough."

Sat, 02/15/2014 - 19:20 | 4440604 PeakOil
PeakOil's picture

Good metaphor.

Sat, 02/15/2014 - 19:43 | 4440669 mt paul
mt paul's picture

Fiat currency equals

flopping fish ...

Sat, 02/15/2014 - 21:12 | 4440875 Seer
Seer's picture

Um... you can eat flopping fish...

Sat, 02/15/2014 - 17:42 | 4440356 LibertyForSome
LibertyForSome's picture

I wrestled with that exact question when easing began, and this is the best I could deduce...

If the money is just a number sitting in a bank account (as opposed to actively vying for goods) it might as well not even be there.

Since a) the money never 'trickles down' to the masses with real demand and b) Bill Gates can only fit so many yachts at his marina, a lot of this money won't be put to work in the economy.  It will sit on a server, and proverbially collect dust.

However, many of those that did benefit from the 'recovery' have been trying to reinvest this new-found wealth back into the equities and financial platforms from whence it came--read: inflated assets.

Sat, 02/15/2014 - 18:39 | 4440486 disabledvet
disabledvet's picture

China prints a bazillion plus the USA prints a bazillion for "over there" of which truly stupendous quantities ends up "from whence it came" (back in the USA, London apparently...Hong Kong, Singapore) everything is going great until "Taper."

Now it's "bring back the posse time" ("return to QE NOW!!!")...unfortunately once your lead is is the Band.

The End.

Sat, 02/15/2014 - 19:14 | 4440552 ThroxxOfVron
ThroxxOfVron's picture

Ironic: on one hand -the 'Excess Reserves' at the FED are moving around the US Economy almost as fast as the 'Bitcoins' sealed up in Mt. Gox; and on the other -the propping of asset valuations and the failed loan levitation creating a zombie economy is obvious.

The reality is that inflation and deflation co-exist.

TPTB aka .GOV/Central Banks -are simply allocating resources: rationing liquidity to the connected and starving the unaffiliated...

You will ALL know when control is lost because the economies of the World be be desperate to divest themselves of an untenable excess capacity of humanity.  WAR.  A real actual Total War of relentless savagery.

This is the ONLY reason the McPetroDollar is still King; the US has by far the biggest armament on the fucking planet.

Sat, 02/15/2014 - 21:14 | 4440880 Seer
Seer's picture

The numbers are ONLY for generating reports that keep triggers on safety.  They're the metric used, and while everyone knows that it's al B.S. there is no way to challenge anything (until it's all but toast, at that point it'll become more than meaningless).

Sat, 02/15/2014 - 17:48 | 4440367 Colonel Walter ...
Colonel Walter E Kurtz's picture

It is mostly staying in the financial circles and not getting out into the private market. Just being circle jerked around the globe between banks and governments, staving off what would be one default after another. Takes an awful lot of fiat to try to suck up the $400 trillion derivative mess they have created.

Sat, 02/15/2014 - 18:40 | 4440491 disabledvet
disabledvet's picture

you either caught the wave or you didn't.

everyone else is living on "borrowed time" now.

Sat, 02/15/2014 - 21:19 | 4440892 Seer
Seer's picture

"Takes an awful lot of fiat to try to suck up the $400 trillion derivative mess they have created."

And, well, it's not even doing that.  All that it's doing is creating such a shell game that we all lose track of the pea (which doesn't even exist, but hey, it's the game!).

Risk is alive and well.  Nothing has changed in the least, not for the big game players...

Sat, 02/15/2014 - 17:48 | 4440369 kaiserhoff
kaiserhoff's picture

Much of the money went into banks to cover massive losses on real estate, a process which still continues, so the net effect is less creation than we might expect, but asset values remain at inflated levels, and debt is off all previous charts.


Sat, 02/15/2014 - 17:57 | 4440380 falak pema
falak pema's picture

'Cos that liquidity is not feeding the REAL market where the inflation is measured. Its feeding the derivatives games market where the inflation is in Stock prices and FX margin cash and carry plays and in RE (subprimes). For every winner there is a loser thats why so many HFs lose and so few win. The win to lose ratio is skewed there as well. Only the big boys survive.

That sucker is so hungry it can't get enuff liquidity. And its lack of liquidity  for its leveraged derivative plays and consequeces involving CB bigger plays to provide coverup that is drying up the real economy. So no real commodity inflation...

The FIRE economy inflation pump was the true invention of Reaganomics, like the never ending bean stalk. "We will never have a recession from now on."

Greenspan's forever dictat and Squid's engineering to do God's work.  Now you know what PAx Americana has become. 

Our real problem up ahead is mega deflation when the real economy tanks under the cumulative effect of PRIVATE sector debt (shadow banking inclusive), the real gorilla in the store. 

Sat, 02/15/2014 - 19:22 | 4440610 disabledvet
disabledvet's picture

deflation is EPIC FAIL.

that means default and debt market mayhem.
enter "the liquidity providers."

there are very few. ideally "after a few trillion" the economy would be growing and as with the 80's, 90's and 2000's "be the provider." ("escape velocity." maybe the Chicago Fed Head meant this:
QE has done well in some parts...globally and locally...spectacularly so actually.
it won't be "paying the piper" anymore though.

Now the economy will have to grow on its own.
My personal view of Taper is that it's just a recognition of this fact...that QE had either lost its effectiveness or "it was just time for a change."
surprising that someone would vote against their own bill.
we haven't had a hurricane in six years (give or take) so the amount of money in the flood insurance fund has got to be pretty huge right now.

i find it surprising that rates are surging actually.

Sat, 02/15/2014 - 18:05 | 4440430 seek
seek's picture

Several reasons.

Monetary velocity is plunging. The newly printing money is to offset the deflation that causes (because deflation kills banks dead.) By and large the new money is just to support asset prices so bank balance sheets don't implode.

So we actually have high levels of inflations -- things like house prices shouldn't be anywhere near where they are -- but it's being used to cover up the collapse of the economy and asset pricing that happened in 2008-2009. As long as velocity is low, it's not a problem. However, if that money starts moving -- e.g. switching asset classes, taking profits, etc -- then all hell will break loose, and more hell than we had in 2008 since there's more money in the system.

Another issue here is... who owns the assets? More and more it's the banks themselves. The public isn't buying them. So banks trading assets paid for with more and more fed dollars inflates their balance sheets, but generally doesn't impact the mainstream until later. Those same banks, though, are playing in housing and commodities markets, so there's consumer-felt inflation in housing, energy, and to a lesser degree food.

Finally, this money that's being printed that isn't going into bank-held assets is generally going overseas, exporting our inflation. Look at the emerging markets and the evidence of inflation is pretty obvious.

The thing that should be worrying to people in the US is when the dollars aren't exported. That brings inflation home. If you look, the US energy industry is doing great right now, which means a lot of dollars that used to be exported for energy aren't leaving -- and that will come back to haunt us. Likewise, if the coutries we export to decide we're a shit reserve currency and dump dollars for something else, that'll bring dollars home as well. Under the right circumstances we could have a massive wave of inflation at home in the US emerge very rapidly after an extended calm.

Sat, 02/15/2014 - 21:47 | 4440966 Citizen_x
Citizen_x's picture

A long time ago, in a far away galaxy....

There was "Mark to Market".....

Sat, 02/15/2014 - 21:54 | 4440990 Seer
Seer's picture

You're a wise old owl! :-) (you quite easily nailed it)

Sat, 02/15/2014 - 18:53 | 4440526 EconomicGenocide
EconomicGenocide's picture

What do you mean no inflation, 90% of all the printing has gone into the markets or reseves. The markets are up 20% plus per anum. If all you buy is apples (stock) and no oranges (economy). Oranges reflect no inflation.


What do you think the CPI would look like with stocks added to the mix!

Sat, 02/15/2014 - 19:01 | 4440550 Spigot
Spigot's picture

People talk about a "mountain of debt" but it's not a mountain. It's a huge black hole. They are trying to fill the hole. It ain't workin'.

Sat, 02/15/2014 - 20:26 | 4440769 eddiebe
eddiebe's picture

Commodities are shorted in the futures markets

Sun, 02/16/2014 - 01:48 | 4441496 dtwn
dtwn's picture

If you go by the Austrian/Misesian definition of inflation, then by definition expansion of the money supply through global fiat money creation is the very definition of inflation.  We just haven't seen it yet in what most think of as inflaiton, the increase in consumer prices.  This massive global fiat money creation will end in hyperinflation of consumer prices though.  A few years at most is what we have left.  Keep stackin peeps.

Sun, 02/16/2014 - 12:10 | 4442099 newprepper
newprepper's picture

That is the most important question that few are asking. It has to do with asset inflation. Few of the dollars are ending up in the hands of people who would spend it. If you gave everyone a million dollars and they all put it in their garage , no economic activity or inflation would result. Yet in certain circles assets are more valuable and used as collateral to buy more assets with or without more debt. Soon we will all be screwed!

Sat, 02/15/2014 - 17:51 | 4440379 piceridu
piceridu's picture

Surprise, Surprise!



Sat, 02/15/2014 - 17:52 | 4440387 Binko
Binko's picture

Because it's the first time in the world that all the major economies of the world are running the same fundamental system where government and corporate power has merged into one entity that will do literally anything to keep the riches flowing to those in power. It's a mutually supporting global web that works together to prop up a system that has worked so well to redistribute wealth upward.

The global economy is like a bus careening down a mountain road in stormy weather where the driver, owner and security guard are sitting up front chuckling while they count all the money they have extorted out of the passengers and saved on necessary maintenance and repairs.

Sat, 02/15/2014 - 19:18 | 4440597 ThroxxOfVron
ThroxxOfVron's picture

Well said, Binko !

I am sadly much in agreement; -particularly with the bus ride analogy.

Sat, 02/15/2014 - 17:18 | 4440292 Bunga Bunga
Bunga Bunga's picture

"...likely to be contained..."

Sat, 02/15/2014 - 17:20 | 4440297 Muppet
Muppet's picture

Sum ting wong, wei tu loe

Sat, 02/15/2014 - 17:21 | 4440298 max2205
max2205's picture

China should have used the fake money to buy those islands from Japan. ...oh well

Sat, 02/15/2014 - 17:22 | 4440300 Haager
Haager's picture

Is it worth the effort to compare sausages with apples and tomatoes?

Sat, 02/15/2014 - 18:49 | 4440511 Spigot
Spigot's picture

Real comparison is size of ballz. Chinese ballz like grape fruit. Euro ballz like small grape. US ballz like glass christmas ormanent made in Ukraine.

Problem: no brainz on earth to match any size ballz on earth

Result: global train wreck

Sat, 02/15/2014 - 17:22 | 4440302 blindman
blindman's picture

they will buy gold and then default on the loans.
oh well.

Sat, 02/15/2014 - 21:55 | 4440992 Citizen_x
Citizen_x's picture

China will repay it debt with US Treasury Bonds.

They have a few laying around, somewhere....

Sat, 02/15/2014 - 17:24 | 4440308 Fight-Club
Fight-Club's picture

Nationally China needs resources.  The countries interests would be better served by crashing markets and commodity prices to buy them up cheap.  Problem is 14% of the population is in "the Party", and benefit from profits generated from companies exporting goods.  Those in control are in it just for themselves, to get rich quick and get the hell out of there ASAP. 

Sat, 02/15/2014 - 22:23 | 4440622 deflator
deflator's picture

 A strategic blowup of the worlds fiat currency systems? A workaround  of mutually assured  destruction. All China cares about is accumulating physical assets like gold and the worlds manufacturing base. Destruction of all things paper in the process is just icing on the cake.

 China is not a paper tiger although they did invent all things paper and have been through(and caused) this same shit many times over the centuries. I think they know a little about creating "money" by edict. They were putting holes in coins when the Roman Empire was still shittin' yellow.

Sat, 02/15/2014 - 23:41 | 4441267 Seer
Seer's picture

China's sitting on a powder keg.  They have insuficient resources to continue to stoke their growth habit and they're trying to create a middle class with a HUGE population as the rest of the world is becoming less and less able to purchase products from it (for it to then purchase raw materials/resources).

Sun, 02/16/2014 - 14:16 | 4442370 Chuck Knoblauch
Chuck Knoblauch's picture

China's sitting on a pile of gold. Their people are disciplined and nationalistic. There are billions of them. Israel sells them all our technology. Ya, we have nothing to worry about.

Sat, 02/15/2014 - 17:28 | 4440318 ebworthen
ebworthen's picture

Nearly half-a-trillion of liquidity in one month?

I thought the Chinese were good at math?

Sat, 02/15/2014 - 19:46 | 4440677 Snoopy the Economist
Snoopy the Economist's picture

How much is used to buy gold?

Sat, 02/15/2014 - 23:46 | 4441277 seek
seek's picture

All of it if they're smart.

Sat, 02/15/2014 - 17:30 | 4440325 monopoly
monopoly's picture

Not to worry all.......We will catch up. Promise.

Sat, 02/15/2014 - 17:31 | 4440329 fijisailor
fijisailor's picture

China is a creditor nation

China is not printing and exporting the worlds' reserve currency

China is backing their act up with GOLD

The Chinese work for pennies per day and save with gold.

It makes little difference who causes the big crash.  What will matter is how well YOU are able to survive economocally and otherwise.

Sun, 02/16/2014 - 00:59 | 4441403 Seer
Seer's picture

Long-term what matters: Food, Shelter and Water.  Resources.

Sat, 02/15/2014 - 17:31 | 4440333 buzzsaw99
buzzsaw99's picture

not a probrem

Sat, 02/15/2014 - 17:33 | 4440337 BullyBearish
BullyBearish's picture

This explains the rocketship copper has been riding the last leg of bull market in 3,2,1...1900 before March 15


Totally Un-unbelievable

Sun, 02/16/2014 - 07:16 | 4441724 tip e. canoe
tip e. canoe's picture

could it be simply a snapback reversion to mean?   check out the charts:

the farther out you move out in time range, the more the latest move up looks tightly bound still.   same with the rest of the commodity metals.

in an era of electronic trading & HFT, everything swings pretty wildly (volativity is king).  especially when hot money starts to flow out of something else and is searching for a spot to park itself and pick up some loose nickels lying around (pun intended).    that may or may not reflect a larger long-term trend developing.     so perhaps it's best to step outside the daily/weekly swings in order to properly separate the wheat from the chaff (pun also intended).

also, not seeing how this particular datapoint cooraborates a violent move to the upside in Au (i'm assuming that's what "1900" refers to?).


Sat, 02/15/2014 - 17:34 | 4440339 Seize Mars
Seize Mars's picture

You know in a full on currency crisis in China, every piece of paper would fly at high velocity into the USD. Everything, everywhere wuld flow into USD. This means gold would get monkeyhammered, at least for a while. Remember '08-'09 when gold collapsed, at least temporarily. This would be the same.

Then, after the FED utilizes this fact to their advantage, and only then, would the USD fall apart.

Sat, 02/15/2014 - 17:38 | 4440349 akak
akak's picture

Past performance is no guarantee of future results.

Sat, 02/15/2014 - 17:56 | 4440404 Binko
Binko's picture

I agree. I'm starting to think that when the entire global financial system starts to melt-down we here in the USA will get another pass. That good old global hegemony we built up after WWII has paid off in spades.

The only problem is that we no longer manufacture any of the little stuff we need to keep things running like spare parts, nuts and bolts, lightbulbs, gaskets etc. If China ever goes full crazy our cozy little world will grind to a halt.

Sat, 02/15/2014 - 18:09 | 4440435 seek
seek's picture

When the dollars come home, we definitely won't get a pass.

Actually when that happens it would be the optimum time for the bail-ins to get triggered to absorb the liquidity prior to inflation getting out of control.

Sun, 02/16/2014 - 13:55 | 4442310 Chuck Knoblauch
Chuck Knoblauch's picture

That's when the private jets will be taking off for Switzerland and South America.

Sun, 02/16/2014 - 13:50 | 4442300 Chuck Knoblauch
Chuck Knoblauch's picture

Can you think of any country better suited to deal with a sudden onslaught of austerity than China? I admire China for their discipline and nationalism. I wish I saw more of it in the U.S. No worries, we will just import it from China!

Sat, 02/15/2014 - 17:41 | 4440354 falak pema
falak pema's picture

Mine is bigger is a member of ZH ; so he must be chinese.

Sat, 02/15/2014 - 17:47 | 4440364 q99x2
q99x2's picture

The United States Marine Corp needs to go in and shut the FED down now.

Arrest Janet Yellen before the FED gets us bombed.

Sat, 02/15/2014 - 18:58 | 4440537 fijisailor
fijisailor's picture

Yeah.  Put those guys to good use

Sat, 02/15/2014 - 18:58 | 4440541 Chuck Knoblauch
Chuck Knoblauch's picture

The FED is managed by people with dual citizenship with another state. Divided loyalties create an environment for traitors. It only proves that the FED is an international entity that doesn't pay taxes. The FED must be returned to U.S. ownership and control. No one has the guts to say it, let alone do anything about it.

Sun, 02/16/2014 - 01:03 | 4441410 Seer
Seer's picture

I'm thinking that the Fed wouldn't be able to do near as much as it does/has done if not for all those requests to purchase USTs...

It was always going to go into the toilet.  Sometimes the biggest turd survives for another flush... (and whether it's by design or not I am not sure anyone will ever know, but the "resutls" are pretty clear)

Sat, 02/15/2014 - 17:54 | 4440396 Payne
Payne's picture

They will bubble us one better and support our stupid spending habits all at the same time.  Imagine what happens when you cannot get cheap goods from China ?

Sat, 02/15/2014 - 18:01 | 4440415 logicalman
logicalman's picture

If 99% of the Chinese population gets pissed off, look out!

That's a lot of angry folk!

Sat, 02/15/2014 - 18:48 | 4440508 geno-econ
geno-econ's picture

History teaches us China on occasion expels Western Barbarians,
only after they are finished importing technology, financial investment , mathametitians, geographers, mercenaries, etc. However, this time will be different considering huge Western bank exposure, manufacturing vulnerability, and commodity dependance of suppliers like Australia. Certainly a formula for War or mass upheaval exists. Alternative is stay on current debt/printing track which we know is unsustainable. Third possibility is to adjust via business cycle (recession) to achieve equilibrium
of supply/demand as well as adjusting to real growth rates without stimulus. Unfortunately Fed ,Central Bankers and Polititians are hooked on fantasy.

Sat, 02/15/2014 - 19:02 | 4440554 Chuck Knoblauch
Chuck Knoblauch's picture

China knew its enemy was a greedy, fat pig who was willing to sell its mother into prostitution for more profits. They supplied the rope, and the piggies ran with it squeeling all the way into a hot oven. Don't blame the Chinese for a single thing!

Sun, 02/16/2014 - 01:07 | 4441419 Seer
Seer's picture

I wonder whether the long-running push to kill off communism isn't at work.  China's becoming hooked on "modernity," at the cost of its environment.  I think that it's swallowed the bait.  Growth will eventually suffocate them...

Sun, 02/16/2014 - 13:44 | 4442292 Chuck Knoblauch
Chuck Knoblauch's picture

Chinese Communism isn't Marxism if the elite are exempt. The elite have always been exempt. When Chinese Communism comes to America, the elite will be exempt from it too.

Sat, 02/15/2014 - 19:11 | 4440579 holmes
holmes's picture

"mathametitians"! Anyone know how I can get a job in China measuring Chinese tits?

I've got a head for figures and good hands.

Sat, 02/15/2014 - 19:14 | 4440590 FredFlintstone
FredFlintstone's picture

A micrometer will be needed.

Sat, 02/15/2014 - 18:05 | 4440423 Snoopy the Economist
Snoopy the Economist's picture

Print a boatload of cash and buy a boatload of gold. Good deal. Wish I could do it.

Sat, 02/15/2014 - 19:27 | 4440624 Chuck Knoblauch
Chuck Knoblauch's picture

Gold will gap up to $5k when no one owns it. After its been drained out of the West and into the East. If you have physical gold, keep it safe. Don't post any Facebook selfies of you and your gold. Hide it before Obozo comes looking. It's not like it ever happened before, right?

Sat, 02/15/2014 - 19:54 | 4440692 mt paul
mt paul's picture

sinking boat photos ..?

Sat, 02/15/2014 - 18:29 | 4440467 Chuck Knoblauch
Chuck Knoblauch's picture

People's Bank of China still has $24 Trillion in financial assets, the highest of any single financial institution in history. Put it into perspective, boys.

Sat, 02/15/2014 - 18:36 | 4440482 Chuck Knoblauch
Chuck Knoblauch's picture

Also, China removed a huge gold reserve from the U.S. last year when it transferred ALL of its bullion from Hawaii. The cover story was a military exercise. They took their gold back. The U.S. reminds me of the sucking sound I used to hear when the water drained out of my bath tub. Only bag holders will be left clutching their pocket copy of the U.S. Constitution and the bill. I don't know why American born elites think China will be kind to them once they start moving into the U.S. in the same way Israel moves into a Palestinian village to build a kibutz?

Sat, 02/15/2014 - 19:28 | 4440628 FredFlintstone
FredFlintstone's picture

Sherlock, ya got that backwards. US=Israel and China=palestinians in your analogy.

Sat, 02/15/2014 - 19:39 | 4440663 Chuck Knoblauch
Chuck Knoblauch's picture

No Flint, I have it correctly stated. The US is not Israel, and it never will be as long as I have breathe in my lungs, and a working trigger finger.

Sat, 02/15/2014 - 19:45 | 4440675 FredFlintstone
FredFlintstone's picture

4 million Chinese in US now and if say another 10 million bring their loot here and buy estates in the US, they won't be pushing us around. Does that make sense to you?

Sat, 02/15/2014 - 20:06 | 4440719 Chuck Knoblauch
Chuck Knoblauch's picture

What will they be doing, Flint? Will they be eating hotdogs and going to Met games in Queens? Will they assimilate as you believe, or will they make demands in exchange for the prosperity you believe they will share with their new country. Are you on acid Flint? I think someone needs to put you down before you get us all killed, or enslaved.

Sat, 02/15/2014 - 21:32 | 4440920 FredFlintstone
FredFlintstone's picture

Jumping to another conclusion about my beliefs. China will not own us, kill us or enslave us, OK? Trust me. This will not be their new country as you suggest. The same was thought about Japan in the 80's. Do you think I like the idea of Chinese coming here and buying some overpriced RE in California or Vancouver? I understand how racist they are, but I am not afraid of them because I do not attach superhuman qualities to them. Some have become wealthy off the emaciated backs of their comrades and buy a place in the US. So what? If you know something I don't such as a CeyeA scheme for them to take over the US, then say so.

Sun, 02/16/2014 - 12:11 | 4442100 besnook
besnook's picture

you should look into the history of chinese relations in the pacific. they never militarily invaded anyone but they occupied every country except japan. given the opportunity, the chinese would occupy the usa. that is the advantage of a huge population. they never practiced birth control. the chinese biggest export in history has been people. can't wait to hear chinese speaking local italian in a coupla generations. the eu is not safe either.

Sun, 02/16/2014 - 12:17 | 4442111 FredFlintstone
FredFlintstone's picture

We are bigger, meaner and go to gun shows here. Not too worried about the Chinese coming here.

Sun, 02/16/2014 - 12:27 | 4442122 besnook
besnook's picture

you will find yourself taking your chinese friend to the gun range while your wife trades recipes with his wife. then you will have your "oh, shit" moment when your son marries a cute chinese dragon lady and churns out a few yellow peril looking grand kids.....just like the indonesians.

Sun, 02/16/2014 - 13:09 | 4442216 FredFlintstone
FredFlintstone's picture

I've got no problem with that.

Sun, 02/16/2014 - 13:33 | 4442269 Chuck Knoblauch
Chuck Knoblauch's picture

The Chinese don't like our Second Amendment, so kiss it goodbye. And you think the elite American 1% have an attitude, just wait until you experience the Chinese version of elitism! LOL!

Sun, 02/16/2014 - 14:20 | 4442382 FredFlintstone
FredFlintstone's picture

Where will u be when all this goes down? I have experienced some Chinese elitism ans don't like it. You seem to get off on envisioning an America where the Chinese own us and piss on us. This won't affect you, why?

Sat, 02/15/2014 - 18:53 | 4440523 Spigot
Spigot's picture

Another retarded speaking. $24 trillion in WHAT assets? Loans? Pleaz. This is an indication of the problem, not an indication of "strength".

Sun, 02/16/2014 - 01:24 | 4441453 Seer
Seer's picture

Financial assets, like ghost cities?

I'm not thinking that they're as sounds as many might think they are.  And while the numbers that the "leaders" in the West present are clearly questionable, China's numbers are even less so...

Throughout human history the most valuable asset has been land that one occupies.

Sat, 02/15/2014 - 18:32 | 4440473 nothing can go wrogn
nothing can go wrogn's picture

I can save the bloggers, pundits, journalists, reporters, talking heads, a lot of bandwidth:

1. The global economy is designed as a pyramid scheme. (*

2. The global economy is based on perptual growth using finite resources (primarly fossil fuel, clean water, top soil)

3. All pyramid schemes come to an end.

4. This pyramid scheme is coming to an end.

5. The US, Japan, China will continue money printing and accounting fraud to hide this fact for as long as possible.

* The global economy violates numerous antifraud provisions of the Securities Act. The SEC does not appear to be willing to investigate.

Sat, 02/15/2014 - 18:45 | 4440500 Chuck Knoblauch
Chuck Knoblauch's picture

China does not play by the same rules as the U.S., Europe (Vatican), Japan, or The City of London. Stop the China bashing propaganda because it's not working. Tell the CIA stooge at ZH to be reassigned to North Korea.

Sat, 02/15/2014 - 18:54 | 4440527 Spigot
Spigot's picture

Hahahaha ... China is beyond basic mathematics! Puuuurfect.

Sat, 02/15/2014 - 19:16 | 4440594 Chuck Knoblauch
Chuck Knoblauch's picture

While China thinks conquest, you're thinking about your monthly allocations of financial assets. lol.

Sat, 02/15/2014 - 19:21 | 4440605 FredFlintstone
FredFlintstone's picture

China is a country, he/she is a person.

Sat, 02/15/2014 - 19:23 | 4440612 Chuck Knoblauch
Chuck Knoblauch's picture

Nice deduction Sherlock!

Sat, 02/15/2014 - 21:18 | 4440890 Spigot
Spigot's picture

Not so, Chuck-o. China changed from a stagnant, predictable, centrally planned state, into a dynamic chaotic state, all within 30 years. Their entire system is a hodge podge: what ever it takes (great leap forward again) at all costs. Problem is that their hodge podge has a barely functional financial system at its base into which the PBOC has to shovel hundreds of billions per month simply to keep it from falling over. Does that sound good to you? Not to me. It sounds more like a shell game. China is falling apart. That will be tomorrow's headlines as the entire global financial system teeters on the brink of destruction. As much as China would like to pose itself as some how beyond mere reality, it isn't and can't and won't.

Sat, 02/15/2014 - 23:02 | 4441173 andrewp111
andrewp111's picture

Since the power to print is infinite, only shortages of energy can bring the China bubble to an end. There are no energy shortages at this moment.

Sun, 02/16/2014 - 00:35 | 4441366 Chuck Knoblauch
Chuck Knoblauch's picture

'Whatever the price of the Chinese Revolution, it has obviously succeeded not only in producing more efficient and dedicated administration, but also in fostering high morale and community of purpose. The social experiment in China under Chairman Mao's leadership is one of the most important and successful in human history'.– David Rockefeller

Sun, 02/16/2014 - 00:40 | 4441374 Spigot
Spigot's picture

Ah, David, a very nice Facist and a liar. How do you know they are lying? Their mouths are moving.

Sat, 02/15/2014 - 23:13 | 4441206 Jeff Cosford
Jeff Cosford's picture

You are a bad man.

Sat, 02/15/2014 - 18:39 | 4440488 Chuck Knoblauch
Chuck Knoblauch's picture

Does the left hand know what the right hand is doing over at Zero Hedge?

Sat, 02/15/2014 - 19:26 | 4440621 earleflorida
earleflorida's picture

'if your school'd in the ways of the world... tis better to cut off one's left hand in favour of the right, for the left is but a muted anomaly where two wrongs make not a right-- where a false dichotomy is just that... an inchoate matter of dogmatic unanimity-- a righteous gravity always veers positive?'

bravo Tyler

Sat, 02/15/2014 - 19:31 | 4440641 Chuck Knoblauch
Chuck Knoblauch's picture

I think I saw that X-Files episode back in 1998! I think that was the episode when Fox realized the truth was still out there. He never did find the truth, did he? Movie 3 may be in the works, or not. Who cares!

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