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China & Germany Sign Yuan-Settlement Pact And Obama Heads To Saudi Arabia

Tyler Durden's picture


Submitted by Mike Krieger of Liberty Blitzkrieg blog,

I haven’t paid too much attention as of late to agreements between China and other nations intended to expand the use of the yuan (renminbi) internationally, because the near-term implications always seem to be exaggerated by many market commentators. That said, this deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically.

From Bloomberg via BusinessWeek:

Germany’s Bundesbank and the ?People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.


The central banks signed a memorandum of understanding in Berlin today, when Chinese President Xi Jinping met German Chancellor Angela Merkel, the Frankfurt-based Bundesbank said in an e-mailed statement.


Germany’s financial capital prevailed over Paris and Luxembourg in a euro-area race to win trade in renminbi, which overtook the euro to become the second-most used currency in global trade finance in October, according to the Society for Worldwide Interbank Financial Telecommunication. The U.K. Treasury said on March 26 that the Bank of England would sign an initial agreement with the PBOC on March 31 to clear and settle yuan transactions in London.


“Frankfurt is one of Europe’s foremost financial centers and home to two central banks, making it a particularly suitable location,” said Joachim Nagel, a member of the Bundesbank’s executive board. “Renminbi clearing will strengthen the close economic and financial ties between Germany and the People’s Republic of China.”


China was Germany’s third-biggest foreign trade partner last year, with 140 billion euros in turnover passing between the two countries, according to the Federal Statistics Office in Wiesbaden. China ranks fifth among importers of German goods and is the second-biggest exporter to Germany.


German companies including Siemens AG, the country’s biggest engineering company, and Volkswagen AG are embracing the renminbi internally as a third currency for cross-border trade settlements.


“The potential is vast,” said Stefan Harfich, the Siemens Financial Services manager, who steered the introduction of the yuan at the Munich-based company in October. “The introduction of the renminbi as an official company currency will therefore have a big impact on Siemens’s business in the coming years.”


Daimler AG, the Mercedes manufacturer that sold 235,644 autos in China last year, issued 500 million yuan of one-year notes in Asia’s largest economy on March 14, in the first so-called panda bond by an overseas non-financial company.

With all that in mind, let’s not forget that Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syria without the American public finding out about it.

From the Wall Street Journal:

RIYADH—Barack Obama’s visit to Saudi Arabia on Friday marks a bid to warm relations that the Saudis hope will result in commitments by the U.S. president to boost the supply of sophisticated weapons to Syrian insurgents.


Mr. Obama’s stopover at the end of a European tour will mark his first visit to the kingdom since U.S.-Saudi ties were severely strained last year following the renewal of high-level U.S. contacts with Iran and the cancellation of planned airstrikes against the regime of Syrian President Bashar al-Assad.


Saudi officials also are hoping he will bring word of a breakthrough in U.S. and Jordanian opposition to supplying Syrian rebels with more advanced weapons, including shoulder-launched missiles, known as manpads, capable of bringing down Syrian aircraft, according to Saudis, a Western diplomat and regional security analysts familiar with the situation.


Saudi officials also are hoping he will bring word of a breakthrough in U.S. and Jordanian opposition to supplying Syrian rebels with more advanced weapons, including shoulder-launched missiles, known as manpads, capable of bringing down Syrian aircraft, according to Saudis, a Western diplomat and regional security analysts familiar with the situation.


Jordan also has blocked delivery of the additional weapons through its territory to rebels in Syria, for fear of getting pulled deeper into the Syrian conflict. The diplomat and two Syrian opposition officials said Amman is waiting for the U.S. to approve the deployment of Saudi-bought manpads currently sitting in Jordanian warehouses.


Saudi royals have muted their angry rhetoric since last autumn’s rift. Prince Turki Al Faisal, whose criticism of the Obama administration’s policies on Iran and Syria made front-page news in December, made virtually no mention of the U.S. during a U.S. speech about Iran this month. A Saudi ambassador who wrote of Saudi Arabia breaking with the U.S. in the New York Times in December has been publicly silent since.

It appears that becoming entrenched in a Syrian civil war is still very much on the table…

Lots of moves appear to be afoot on the macro front at the moment. The months ahead should be very interesting to say the least.


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Fri, 03/28/2014 - 22:10 | 4604614 palmereldritch
palmereldritch's picture

More precise terms would now be Petro-fuels and Fossil dollar.

Fri, 03/28/2014 - 22:21 | 4604642 knukles
knukles's picture

Oh, silly people.
We'll just cut them off, isolate them like we are Russia.
Everybody knows you can live forever without anything from Germany and especially, China


Fri, 03/28/2014 - 22:35 | 4604683 Jim in MN
Jim in MN's picture

USA out of Eurasia

We can buy whatever they have to offer after the resource wars.  Meanwhile we have lots of delicious oil over here in the WestHem.

Fri, 03/28/2014 - 22:52 | 4604725 john39
john39's picture

The US government demands that the democratically elected moderate assad gov must go, but allies itself with a familial dictatorship in Saudi Arabia that treats women like dogs and spreads barbaric radicalism around the world.  Makes perfect sense.

Fri, 03/28/2014 - 23:59 | 4604855 0b1knob
0b1knob's picture

<  Remember the Hilter-Stalin pact?  Yeh me neither.

<  Meet the New World Order, same as the Old World Order.

Sat, 03/29/2014 - 01:32 | 4604952 Oh regional Indian
Oh regional Indian's picture

Wow, we get to watch live and in real time, the isolation of the US, the slow destruction of it's and th eworld's currency, new alignments, patterns of history repeating/rhyming before our very eyes....

Epic times. Epic times call for epic people.

Be Epic!


My own road to be change....

Sat, 03/29/2014 - 06:21 | 4605102 Rafferty
Rafferty's picture

That's why Heaven sent Obama to us.

Sat, 03/29/2014 - 09:22 | 4605171 Keyser
Sat, 03/29/2014 - 11:29 | 4605360 eurogold
eurogold's picture

Yuan agreement signed with Germany on Friday, Yuan agreement to be signed with London on Monday. Goodbye Petrodollar !

Sat, 03/29/2014 - 08:22 | 4605163 RafterManFMJ
RafterManFMJ's picture

Obamy's flown across the ocean
Leaving just a memory
Snapshot in the White house album
Obamy what else did you leave for me?
Obamy what'd'ja leave behind for me?
All in all it was just a brick in the wall.
All in all it was all just bricks in the wall.

Fri, 03/28/2014 - 23:31 | 4604808 DoChenRollingBearing
DoChenRollingBearing's picture

Jim in MN

Yes, OUT of Eurasia, nicely put.  We have plenty that we could buy (of almost anything) and mind our own business at the same time.

Sat, 03/29/2014 - 01:33 | 4604953 El Oregonian
El Oregonian's picture

What a shit stain the American government is becoming. Just stop, Barry! You are embarrassing yourself.

Sat, 03/29/2014 - 01:40 | 4604957 boogerbently
boogerbently's picture

Ever bodies dissin' da Choomer-in-Chief !

Sat, 03/29/2014 - 05:49 | 4605072 zhandax
zhandax's picture

When you watch a video of an idiot doing a head-on with a train, don't you usually make some sympathetic comments to make the family feel better? Oh, I forgot, they are burning a half-billion dollars of our national deficit to tour China.  Never mind.  #sarc on

Sat, 03/29/2014 - 08:35 | 4605174 Keyser
Keyser's picture

Worse, he's embarrassing the rest of us too. Just when we thought the image of the US couldn't get any worse after 8 years of GWB, we are gifted with Oblamo by TPTB. And oh how they larfed. 

Sat, 03/29/2014 - 15:28 | 4605840 boogerbently
boogerbently's picture

Has obama thrown up on anyone, yet ?

Fri, 03/28/2014 - 23:12 | 4604770 JR
JR's picture

Everybody knows you can live forever without anything from Germany and especially, China

Especially with the loss of the US manufacturing base to China without 'comparative advantage' except to Robert Rubin and the multis -- all parked in tax havens offshore.

Fri, 03/28/2014 - 23:23 | 4604794 nmewn
nmewn's picture

Ain't it grand, Rubinomics, its the latest-old thing ya know.

Gut the productivity & lifestyle of the host, enrich yourself while convincing everyone its for their own only takes a certain class of evil...along with some pizza and a blowjob.

Fri, 03/28/2014 - 23:39 | 4604819 JR
JR's picture

You’ve done it, nmewn, the Fed’s 100-year economic system’s been coined and defined: Rubinomics.

A classic, nmewn, a keeper. Short and sweet. At last!

Fri, 03/28/2014 - 23:25 | 4604797 UselessEater
UselessEater's picture

This is what makes Catherine Austin-Fitts 'Breakaway Civilization' discussion so interesting, the tape worm will continue and redefine core "industry" in the (micro) economically functioning parts of the USA.

Fri, 03/28/2014 - 23:33 | 4604812 DoChenRollingBearing
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Gold for the stackers.* 

Bearings for the rollers.


*and lead to protect it....

Fri, 03/28/2014 - 23:50 | 4604840 UselessEater
UselessEater's picture

Surely its more than stacking gold and lead to protect it?

Beyond the "collapse" you and I want a life and a future; like it or not we're cooperating with this current system in order to function. So what is the emerging system we should cooperate with if we want to exist beyond protecting PMs with lead?

I'm just curious of peoples thoughts (no crticisms intended).

Fri, 03/28/2014 - 23:58 | 4604853 Tall Tom
Tall Tom's picture

Self reliance and self sufficiency? Anything else imposed upon someone else is just another form of tyranny.

Sat, 03/29/2014 - 00:33 | 4604903 UselessEater
UselessEater's picture

Its a very big part of an equation IMO but not the full equation.

Florishing or adapting to a new system is tryranny repeated for sure. But its also likely to be the option for those of us in our 20's, 30's or 40's, there will be scope to do well beyond self-sufficiency otherwise we're just returning to an agrian society on the fringe of the extraordinary high tech society evolving around us.

Sat, 03/29/2014 - 10:17 | 4605259 Tall Tom
Tall Tom's picture

There are other alternatives for those in their "productive years", their 20s, 20s, and 40s.


The change happens first from within then manifests into the outside. It is available today. You do not need wait for someone else to offer it as an alternative and impose it upon you as the "solution" to the Hegelian Problem presented.


Compliance is complicity. Choose to sacrifice some modern "comforts" and OPT OUT. What that takes is a willingness for sacrifice.  Freedom is the gain.

Sat, 03/29/2014 - 00:55 | 4604921 GeorgeHayduke
GeorgeHayduke's picture

It's a nice, simple idea, and it sounds good on a message board but I don't know how well it would actually work in a world of 7 billion people.

Believe me, I've read  quite extensively in the anarchy and libertarian realms (the real stuff, not Tea Party so-called libertarian thinking). I sounds really good, but thus far I've yet to see any historical or current evidence of any humans living in such arrangements beyond the tribal level. I also see the concept of private ownership of land causing all kinds of problems in such a system over a few generations.

I could be wrong and would be quite happy to view any empirical or convincing evidence that proves me wrong. Post it if you've got.

Sat, 03/29/2014 - 04:21 | 4605049 kareninca
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Okay, there you are on your self-reliant, self-sufficient bit of land.  And you wander over to the edge of it, and there's your neigbor beating the pulp out of his wife/kid/dog.  If you stop him is it tyranny?  I'm serious; that sort of thing comes up in real life all the time.  You're visiting your farm neighbor, and she's about to give herself an abortion eight months in; if you call the neighbors in to stop her is it tyranny?

It's nice and easy where everyone is an independent adult, but the truth is that a lot of people aren't, for a good chunk of their lives.  Even in the most free societies, there are a lot of young and old and terribly sick and crazy people.  So if you're a liberarian you say that their relatives are responsible for them?  Why should their relatives be on the hook?  Okay, we'll assume for the sake of argument that they are.  Are you entitled to intervene and protect them from those relatives?  If not, then they are just the "property" of the relatives.

In the most free societies I have read of, people can and do intervene and control other people.  They basically do it by force, actually; the men of the community come in and beat up the deviant guy; the women shame and harass the deviant woman and throw things at her.  And when your read the memoirs of people who grew up in those sorts of settings, they seem to wish they had intervened a bit more (right now I'm reading Yesterday in the Hills, re Georgia hill farmers).  Unfortnately a nice clean rule like "leave other people alone," doesn't cover many common situations; that's why these rural societies have their own "solutions."

We have a family friend; very pretty, blonde and blue-eyed; she just turned 50.  She was horribly abused by her biological parents when she was little.  She lived with her father.  He would beat her until she had to be hospitalized (he sexually abused her, too).  Her mother would then pick her up at the hospital, after she had healed enough to be discharged, and drive her back to the father's place.  In the 1960s there were no reporting laws for doctors, and no-one ever called the cops.  She was beaten and abused her entire childhood.  My mother knew her for a decade, before she could bring herself to tell her.  I remember when the reporting laws came in, and people thought they were very intrusive.

Sat, 03/29/2014 - 05:02 | 4605073 UselessEater
UselessEater's picture

No thing or way of life is perfect in any society or point in history. But that is not the point, in general those communities were far nicer than the drug dregs they look like today in order to satisfy 'downsizing' etc.

People are seeking self reliance to protect their family with lead if need be. We shouldn't get to that point. But either way a prick is a prick and in the nice policed suburbs there are victums of condoned violence. Many reports and solid investigation points to TPTB as the instruments of far greater horror than the neighbour we thump for giving his wife and kids a hard time.

Sat, 03/29/2014 - 05:20 | 4605080 kareninca
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Oh, I'd rather live in an old time Georgia hill farm community, or the Yankee equivalent, then live as I and most Americans do now.  Other than the lack of antibiotics.  I actually think they got the balance close to right.  My point was that that is not really libertarianism; it's just a greater degree of human freedom.  Of course one has a positive visceral reaction to Tall Tom's "don't interfere" precept, but that just doesn't work in many instances, even in settings with a lot of freedom.

Sat, 03/29/2014 - 06:29 | 4605107 UselessEater
UselessEater's picture

As long as we are trying to think for ourselves and nut our way forward - a good start, we know there'll be no ideal but Ilove everyones thoughts.


I dunno,  but I'm  just sick of being called a COMMUNITY - I am not in a freakin community, community is communism speak and it was not a phrase used when I was a kid, then it became "trendy" (magically trendy on all 3 continents I lived),


Sat, 03/29/2014 - 10:33 | 4605282 Tall Tom
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Through anecdotal experience I have learned not to interfere. There was this Gas Station Clerk. She was small. She sttod about 5"-0 and weighed about 110 lbs. She was a cute kiddo. Her 200 lbs boyfriend used to beat her. She had bruises on her arms the size of her arms. So I called him out. (Interference)


I broke up that relationship but she just found another to where the abuser tore her ear from her head. I made things worse for her ultimately.


There are NO POLITICAL SOLUTIONS. The change must come from within and individually.


When enough people awaken then the change will happen outside.

Sat, 03/29/2014 - 15:56 | 4605895 kareninca
kareninca's picture

You are right, given the present dispensation.  We are encouraged to intervene ("oh, why did those evil people not intervene in the Kitty Genovese case")(yes, I know it was largely invented, but it is still taught reverently in social psych classes), and people wonder why others don't intervene.  But the reality is, intervening is often punished brutally.  I have never seen a social psych study re the crappy things that happen to intervenors; that's because they wouldn't like the results.  At least in your case you didn't get directly harmed (by the abuser, by the state); one often does.  I'm not saying one should never intervene, but it's not easy or straighforward these days to do it without dire consequences.

Sat, 03/29/2014 - 06:54 | 4605124 edwardo1
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"Okay, there you are on your self-reliant, self-sufficient bit of land. And you wander over to the edge of it, and there's your neigbor beating the pulp out of his wife/kid/dog."

You've just described the scenario that Putin used as an excuse to take The Crimea. His action doesn't stand up well at all when viewed in that light. It's one thing to intervene on behalf of the wife/kid/dog that is/are being abused and quite another to sieze the farm. One amounts to a legitimate effort to protect someone's life and the other is theft. It's not such a difficult sociopolitical hypothetical to navigate.

Sat, 03/29/2014 - 10:27 | 4605271 MachoMan
MachoMan's picture

I remember when the reporting laws came in, and people thought they were very intrusive.

They are incredibly intrusive.  For every legitimate sexual abuse victim that gets discovered through mandated reporting, there are 50 other families ruined and placed on the legal treadmill for complete nonsense.  [not sure how many mandated reporters you talk to, but if they're anything other than automatons, they'll tell you the horrors of the system].   Further, without mandated reporting laws, at least the victims got medical help...  now it's reserved for only the worst of situations (or when abusers are too dumb to know any better).

You're missing the fundamental premise of conservativism, humility.  It just might be that I don't know what's right for you.  Further, so long as you bargain with the state, by giving up your rights (e.g. privacy), the state has a tendency to not only perform a scortched earth mission on the intended target, but also mission creep.  It's one thing to advocate private intervention, it's another to cede rights to the state.  If you suspect that society will naturally work out a way to handle these sorts of things privately, then why is there a necessity of the state in these situations?  It's inconsistent to even suggest it.

PS, just because mandated reporting hasn't been around forever, that doesn't mean that medical or other professionals didn't see to it that these types of things got remedied...

PS2, tyranny is something in excess of the natural consequences of one's actions...  and, frankly, can only be imposed by the state.  If you classify sexual abuse as merely "abuse," then why would beating the hell out of the abuser be anything more?  Just the natural consequences of one's actions.

Sat, 03/29/2014 - 19:11 | 4605913 kareninca
kareninca's picture

I take it that you didn't read my second post.  I am no fan of the nanny/police state.

I do think that you underetimate how often hideous things happened in the 50s-70s, and how hidden it was.  My mother taught elementary school for many, many years.  She didn't see any abuse in the kids she taught.  However, years later, she would learn from the kids (it's a small town) what they had endured.  She has told me of a surprising number of cases.

In small old-time communities, there were ways of dealing with this (not great, but they existed).  It was post WWII, with growing population and anonymity, that things were really bad:  1950s-70s.  The doctors didn't know the families, and they didn't want the misery of making a fuss.  The cops had no interest.  There were no good ways of proving anything.  People often blamed the victim (incredible but true; I've seen it even where the victim was a kid).  Those doctors who treated our friend know what was going on   -  but if they had made a fuss they would have looked bad, and they probably figured they couldn't change anything.  Unfortunately that is a very, very typical modern reaction to abuse, when there is no reporting system  -  to try to deny it to oneself.  Oh, it's not so bad, if I don't think about it it will go away.  It's like someone coming upon a 3/4 dead animal on the road; the instinct is to just run away and try to not think about it.

What we have now is terrible; mindless and destructive.  But it is important to admit how bad things were, and why this stupid system we now have, seemed like a good idea.

Sat, 03/29/2014 - 11:10 | 4605331 Overfed
Overfed's picture

The problem with government intervention is that it never stops. It just keeps increasing forever.

Sat, 03/29/2014 - 12:17 | 4605438 Anusocracy
Anusocracy's picture

You are dealing with people who are not fully human. The best thing to do is to ostracize and isolate them. Let their shitty genes disappear from the gene pool or you will have assholes like that around forever.

There are 7+ billion people on earth, saving the savages amongst the population is just enabling the continuation of their kind.

Let them die out or be killed. After all, that is what allowed civilization and human behavior in the first place.

Sat, 03/29/2014 - 16:06 | 4605924 kareninca
kareninca's picture

Unfortunately the parents in this case produced a nice big brood, who have gone on to reproduce vigorously.

Our friend is the kindest, most decent person imaginable; a bizarre exception in a loathsome milieu.

Sat, 03/29/2014 - 12:27 | 4605469 Anusocracy
Anusocracy's picture

Iceland existed for several centuries without government.

They did have a law-keeper, though.

Eventually, Norway infected them with the government cancer.

Sat, 03/29/2014 - 00:03 | 4604864 DoChenRollingBearing
DoChenRollingBearing's picture


I am trying to prepare in lots of other ways too, survival stuff included.

Also, I dropped the alcohol.....  Spiritual strength matters too.

Sat, 03/29/2014 - 00:18 | 4604881 UselessEater
UselessEater's picture

I mean preparing for an opportunity. It may not be one we like or agree with and we may be tired and just want to rest, but out of the shite opportunity still going to be there in some way, some shape or form.

All this knowledge of the shite to come is not just for hunkering down in fear of neighbours and government attacking us ad infinitum, surely not? Its got to also be about using our awareness and understanding for preperation to explore and entertain new possibilities - granted we did not ask for the change but its coming and first movers always seem to find a creative path.

To be creative in any small way is to be alive beyond programming, it can potentially give you and me new solutions or actions? It maybe something that goes beyond harking for what was and what should be and instead take us to what we can make of this new world thats coming at us?

I am just throwing thoughts around ;)

Sat, 03/29/2014 - 00:54 | 4604928 GeorgeHayduke
GeorgeHayduke's picture

I think there are small communities scattered around that are preparing for the opportunities ahead. It's more about learning skills and how to function as a community than about flinging as much lead as possible (although folks who think like will have to be dealt with at one point). Amish and Mennonite communities wouldn't likely notice a major economic collapse except for the possible stragglers they might encounter. There are likely others who aren't as religious doing the same thing. Finding them may not be easy as they likely don't want all the asshole opportunists knocking on their door when things get dicey.

Sat, 03/29/2014 - 02:56 | 4605007 UselessEater
UselessEater's picture

Certainly last come'rs are less welcome.  I'm thinking the options may not be agrarian or perish. The skills we can build while being self-sufficinet to the degree that's possible surely have to include the net, 3d printing and other such capabilities - P2P maybe the new rural community for crowd sourcing and all that stuff I'm baffled by.

I realise you're not suggesting we return to Amish lifestyle, but - should we consider that as possibly the "only" option without taking advantage of the self-made tech around us we're severly limiting our options and possibly falling into a well laid trap.

A shift in our thinking is required if we're to ensure future independence - I suspect its a pretty big shift.

Just pondering....who knew my navel was so fascinating?

(sarc expression about 'naval gazing')

Sat, 03/29/2014 - 04:23 | 4605053 Apostate2
Apostate2's picture

DoChen. I have had three martinis. I have had ENOUGH. My spiritual sense says praise the Lord, do no evil and love the folks even if they know not what they do.

Sat, 03/29/2014 - 03:25 | 4605024 Malachi Constant
Malachi Constant's picture

Stacking... protecting... emerging system... cooperate...

What for?

What is the long-term goal? OK, you won't die today because you have Mountain House and 7.62. Great. You won't die tomorrow because of some other reason. All of this effort, investment, struggle - to what end, exactly?

Let's say will have managed to spend a respectable chunk of decades on this planet - but what's the goal? What's the achievement?

"I lived to 190, accumulated a massive stash of shiny shit that allowed me to keep the stash of shiny shit and then I died as naked as I was in the beginning".

This is what survival nutship is about: accumulate shit for the sake of accumulating shit.

Because in the end no one survives. No one knows what will happen and when. But we waste our lifetimes in preparations instead of living.

Do what you want.  Do what YOU want. There are no rules other than gravity, thermodynamics, etc.  This is your purpose: to learn not to lie to yourself. This is your program. You are alone, everyone else is a script. You lost everything the moment you were born.

Sat, 03/29/2014 - 03:43 | 4605034 Gold Eyed Cat
Gold Eyed Cat's picture

Can I have your stuff?

Tue, 04/29/2014 - 22:29 | 4710591 Malachi Constant
Malachi Constant's picture

You have always had it.

Sat, 03/29/2014 - 03:44 | 4605035 Oh regional Indian
Oh regional Indian's picture

Very. Well. Said....

Sat, 03/29/2014 - 05:30 | 4605082 UselessEater
UselessEater's picture

huh? Sir I think I misunderstood you so forgive me if I mentally respond with wtf? I get the idea of not accumulating shit (though why the fuck not enjoy your labours?).

If one fully subscribes to the "You are alone, everyone else is a script. You lost everything the moment you were born." meme then I am very interested in your actual journey and/or thought process (we all have theories). Its a hard core life lesson to realise how to go back to being an individual, an intimidating one but there are others... so the question becomes how to move this forward? From an econ perspective.


Tue, 04/29/2014 - 22:26 | 4710562 Malachi Constant
Malachi Constant's picture

>> why the fuck not enjoy your labours

Why the fuck labour in the first place?

I did not choose to be thrown into this jail. I don't like that I have to live by somebody else's rules: I can't fly, can't travel back in time, can't breathe under water, can't change my body, can't go without food for a month, without sleep for a week.

This is what _I_ want. And what am I offered? Food. Food that I have to fight for. Just think carefully: I must fight for food in order to secure enough energy so that I can fight for food tomorrow.

If whoever threw me into this world cares about me, they will show me a way to happiness. (Hasn't happened in 40 years, but who knows.)

If I am here by pure chance, then there is even less point in doing anything.

I can "buy" a house - but it will belong to the bank and to the city. I can "make money" - but it's Bernanke or whoever that decides how much I have. That is, what's left of it after I pay my annual protection racket fees.

I can't stand the feeling of not being free. I can't buy into the "ownership" fairy tale, because I know that nothing is mine.

It's not worth it. I have seen a beautiful mountain = I saw them all. I had sex once = I had all the sex in the world. I ate a delicious meal = all right, all right, I can see the pattern.

I am a hamster in the cage; a character in a computer game; I cannot leave the track. I cannot pretend that I am happy about this track - I hate it because I did not choose it. I refuse to care where it leads, because wherever it is, it wasn't chosen by ME.

I am a slave. I did not choose to be born. I did not choose to eventually die. I did not opt for hard labor for being able to experience the joys of hard labor day in day out. I don't want it.


1. Being alive is more interesting than not existing at all. Even as a character in somebody else's game - it's more exciting than non-existence.

2. Letting things happen, without even pretending to be a factor in their flow, is more exciting than pretending to know what you are doing. The result is unpredictable in both cases, but I am relaxed and calm when things change.

All that's left for me to do is to help people around me who think they are free. If I cannot be happy, I can at least help others be happy without judging.

If I can't have what I want, the only way out is to get rid of the part that does the wanting: the self. I want to make sure that for you and anyone around me the world with me in it is better than the world without me. If you can enjoy this world, I'll try to help you enjoy it.

Sat, 03/29/2014 - 06:02 | 4605094 Rubbish
Rubbish's picture

The fruits of our labor are consumed when a physical body slows in it's adaptation to change.


Without fruits there is no apple pie. Ala mode?

Sat, 03/29/2014 - 11:10 | 4605330 11b40
11b40's picture what you like.



Sat, 03/29/2014 - 00:06 | 4604867 Antifaschistische
Antifaschistische's picture

It's the rise of Financialdom.   When I was in Business School they were preaching the death of manufacturing and the rise of the "Service" industry.    This never made sense to me.  To me...there were those activities that generated wealth (i.e. making something everyone wanted), and activities that consumed wealth (i.e. a trip to DisneyLand).    Eventually, the trips to DisneyLand have to get paid for by something other than a corresponding Amusement Park employee.

Germany and China both make "stuff" that each other want.  We can protect our industries in the short term by legislating competition away.  (e.g. try to buy a great 4x4 heavy truck in the US [Kamaz, Uniimogs, MAN, SCANIA, etc]) too bad, we protected Detroit.   Now the entire world has said..we don't want US "stuff".   Our Unions (and POTUS) are still happy....but they shouldn't be.

It woudn't be too late if we did a complete removal of all true business constraints...but we're increasing constraints at a break neck pace (e.g. Healthcare), it's too late.

China will have a hard fall....and we'll all laugh.   So will the Euro.  But at the end of that day, the Germans and the Chinese will still wake up, and go to work, and make stuff that everyone else in the world wants.............and we won't.

Sat, 03/29/2014 - 00:38 | 4604908 scraping_by
scraping_by's picture

Don't make unions the fall guy for the rise of financialdom. The unions are ghosts. Screwed up in the 1930's when they agreed to purely economic goals and didn't create their own political party. One of FDR's less fortunate backroom deals.

Protecting our industries is what we used to do, and is what everyone else now does. No one's drunk the neoliberal koolaid like the US. And the ones that do, like the smaller countries in Europe, have discovered it's nothing but austerity for the masses and speculation for the elite. Neither of which makes much good for the vast majority of citizens.

Making stuff again is realistic, though it'll take a while to relearn how. But no other nation does it without protection of domestic industries. And that means the fairy tale of deregulation and Free Markets has to die.

Sat, 03/29/2014 - 03:29 | 4605026 UselessEater
UselessEater's picture

The idea of making stuff again is what interests me. What can do we do as individuals who connect with others using tech and our ingenuity? The tech won't die, it serves TPTB so we have some leverage? (If thats the right word)

Sat, 03/29/2014 - 08:46 | 4605179 Antifaschistische
Antifaschistische's picture

I don't blame the Unions at all.   I believe any collection of individuals anywhere should have the right to to unify and strike, walk out, or demand any wage the market can bear and the government should never have the right to step in a make them go back to work.  No government intervention at all.

..but the government does intervene, often to protect the Union, often to protect the corporation.

As the world becomes a more difficult place to live...governments will even become more protective in desperate attempts to preserve wealth.  I believe we will collectively suffer in this school yard cat fight.

Sat, 03/29/2014 - 08:55 | 4605187 FredFlintstone
FredFlintstone's picture

Public employee unions are not "ghosts".

Sat, 03/29/2014 - 01:06 | 4604939 GeorgeHayduke
GeorgeHayduke's picture

" When I was in Business School..."

So tell me, was the "Stealing from widows and orphans" class required in the senior year as a capstone, or did they require it in the freshman year as a weed out course?

Sat, 03/29/2014 - 06:24 | 4605105 Rafferty
Rafferty's picture

Rubin should be at the front of the procession to the guillotine.  That bastard has been at the center and the inception of every economic problem we face today.

Sat, 03/29/2014 - 11:38 | 4605374 Kirk2NCC1701
Kirk2NCC1701's picture

Yes, JR. The rich have adopted the mind set of Dual Citizenship (DC takes on New meaning), as promoted by Black and Casey.

The rich stay rich, and the rest get to bah and bitch. Decide and plan accordingly: Rich, bah or bitch?

Fri, 03/28/2014 - 23:21 | 4604792 Carpenter1
Carpenter1's picture

Shoulder fired missiles have been in the hands of Al Qaeda for at least a year, YouTube videos prove it. More BS

Sat, 03/29/2014 - 06:49 | 4605121 ThirdWorldDude
ThirdWorldDude's picture

True that. Alas, WSJ only mentions armaments that should be supplied through Jordan, no mention of the supplies that ISIS and Al-Nusra are receiving through Turkey.

Turkey, obliging to ZATO orders, provides the main logistics pipeline to Syrian terrists as previously noted by many different researchers (see this and this). 

Sat, 03/29/2014 - 11:17 | 4605339 11b40
11b40's picture

...not to mention all the shit that flowed through Bengoozi.

Sat, 03/29/2014 - 06:12 | 4605098 negative rates
negative rates's picture

Not everybody.

Sat, 03/29/2014 - 11:31 | 4605363 Groundhog Day
Groundhog Day's picture

I get this funny feeling Germany is pissed at the USSA about something....hhmmm....what could it be.....something to do with a pending delivery of some sort....i just can't put my finger on.......something about 7 years to get delivery....

Oh well it'll come to me soon enough 

Sat, 03/29/2014 - 03:09 | 4605012 matrix2012
matrix2012's picture

"More precise terms would now be Petro-fuels and Fossil dollar."


@ palmereldritch,


You just coined a very cool term "FOSSIL-DOLLAR",

now is the time to popularize it,


and remember, it's first used in Zero Hedge!!



Fri, 03/28/2014 - 22:11 | 4604615 Theta_Burn
Theta_Burn's picture

Will Obama return the fuck-up as usual?

Fri, 03/28/2014 - 22:13 | 4604625 surf0766
surf0766's picture

IN my best Chris Mathews voice. "But this guy is a community organizer. He know how to get things done."


Fri, 03/28/2014 - 22:25 | 4604655 knukles
knukles's picture

There is not a single Progressive lunatic fringe nut job out here on the Left Coast that can explain what the fuck a community organizer actually does.
These are the same people who get all flustered when you point out that he's not black, either.

Fri, 03/28/2014 - 22:34 | 4604681 nmewn
nmewn's picture

Community organizers bow to kings & prime ministers, I thought everyone knew that ;-)

Fri, 03/28/2014 - 22:40 | 4604700 knukles
knukles's picture

I could see Ronnie Raygun bow to Putin, cut a big loud fart and say "Well... Trust but verify." And drop his trousers.

Fri, 03/28/2014 - 22:43 | 4604704 fonzannoon
fonzannoon's picture

knukles see my ronnie raygun clip below. you will love it.

Fri, 03/28/2014 - 22:52 | 4604723 knukles
knukles's picture

Awesome, fonz

Fri, 03/28/2014 - 23:08 | 4604756 nmewn
nmewn's picture

lol...if it smells, tax it, if it keeps smelling, regulate it, if it stops smelling, subsidize mooning.

Sat, 03/29/2014 - 00:38 | 4604877 DoChenRollingBearing
DoChenRollingBearing's picture

DoChen sez:  Pplllfff..., catch that and paint it green!

Sat, 03/29/2014 - 06:29 | 4605108 Rafferty
Rafferty's picture

Community organizers bow to kings & prime ministers, I thought everyone knew that ;-)


And bow to Reggie Love as well.  Very deep bows, like 90 degrees.

Fri, 03/28/2014 - 23:18 | 4604784 Cangaroo.TNT
Cangaroo.TNT's picture

Community organizers organize hashtag campaigns. But you get what you pay for.

Sat, 03/29/2014 - 06:17 | 4605099 negative rates
negative rates's picture

Know your constitution.

Fri, 03/28/2014 - 22:11 | 4604616 cossack55
cossack55's picture

A few small nukes may actually work against _________!

Fri, 03/28/2014 - 22:25 | 4604653 booboo
booboo's picture

A few of the Rothchilds Castles?

Fri, 03/28/2014 - 22:32 | 4604671 UselessEater
UselessEater's picture

A few of the Windsor castles?

Pls just get me out of the kennel first, woof.

Fri, 03/28/2014 - 22:12 | 4604619 fonzannoon
fonzannoon's picture

"Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syriawithout the American public finding out about it."

seriously? Obama has a clue about this? So this is Obama?

Fri, 03/28/2014 - 22:26 | 4604657 disabledvet
disabledvet's picture

Meh. "Scrub 2: the bagration."

The sad part is "you really can make this shit up."

Usually it starts with "two drunk phucks get in a fight and decide to get married. And then!.....

Sat, 03/29/2014 - 00:34 | 4604905 Tall Tom
Tall Tom's picture

No. Obama is more like Clinton in this sketch...a Warlord.

Sat, 03/29/2014 - 02:08 | 4604980 Rock On Roger
Rock On Roger's picture


I think obama fucked up. (posted by ahmeexnal earlier)

Fri, 03/28/2014 - 22:13 | 4604622 magpie
magpie's picture

That's racist,

A couple of missiles should have worked against the Omarmobile...

Fri, 03/28/2014 - 23:34 | 4604624 Josh Randall
Josh Randall's picture

Wow look, there's a sale at Penney's !

Fri, 03/28/2014 - 22:18 | 4604636 Yen Cross
Yen Cross's picture

 Winnie the Kampo...

Fri, 03/28/2014 - 22:22 | 4604644 disabledvet
disabledvet's picture

I did find the story of the one no vote on "Plan Crymea" in Russia's "Dum--" quite entertaining. We actually did have a US Senator vote no "after the. Germans bombed Pearl Harbor." Young lady from Idaho I believe.

Still.."who doesn't have a little Siberian Seperatist" in them.
Girls in Idaho are a-okay too I might add.

Fri, 03/28/2014 - 22:34 | 4604675 knukles
knukles's picture

Actually, the Senate unanimously approved the declaration 82-0. The House vote was 388 to 1. The one dissenting vote was by Mrs Jeannette Rankin, (R-MT)

Fri, 03/28/2014 - 22:38 | 4604695 Jim in MN
Jim in MN's picture

Palpatine really whipped them into shape, eh?  Filthy separatists.

Fri, 03/28/2014 - 22:48 | 4604714 Yen Cross
Yen Cross's picture

 Hey Jim/ Approx 1.5-.75 weeks ago you made an comment.  I read that comment, and thank you for taking the time to espouse your ideas.

  An good man you are Jim.





Fri, 03/28/2014 - 22:53 | 4604727 Jim in MN
Jim in MN's picture

Are you extra hammered now Yen?  On an airplane perhaps? 

We can always tell you know.  It's OK.

Fri, 03/28/2014 - 23:30 | 4604806 Yen Cross
Yen Cross's picture

 Jim / I'm looking for AKAK?

  I'm xtra unhammered jim/ Can you feel the energy Jim?

Sat, 03/29/2014 - 04:14 | 4605048 Apostate2
Apostate2's picture

I'm looking for him also

Sat, 03/29/2014 - 11:44 | 4605384 DoChenRollingBearing
DoChenRollingBearing's picture

Brother akak withdrew, he was not kicked out.  

His name was akak.

Fri, 03/28/2014 - 22:45 | 4604709 nmewn
nmewn's picture

Yeppers, that was the chick in the tunnel with the M16 shooting at the samurai Blues Brothers guy.

But who the hell could blame her for wanting to do it herself!

Fri, 03/28/2014 - 22:24 | 4604649 HardlyZero
HardlyZero's picture

When we see Merkel kowtow or brush-up on Chinese then the jig is up.

Fri, 03/28/2014 - 22:33 | 4604676 disabledvet
disabledvet's picture

No one stands on ceremony anymore either.

I mean porno is better than this shit. At least they're trying to tell a story.

"You can ctiticize the method but don't make fun of the ending." Even though they all end the same way every time.

(God I hope I'm the only person in history to have ever said this shit. I DEMAND CONTEXT FROM MY SCRIBE LONG AFTER I HAVE PERISHED IN DRAMATIS PERSONAE TOO!)

Fri, 03/28/2014 - 22:26 | 4604659 Totentänzerlied
Totentänzerlied's picture

The petrodollar just took another body blow. How did I miss this news?

Fri, 03/28/2014 - 22:35 | 4604684 knukles
knukles's picture

You were watching Chris Mattews?

Sat, 03/29/2014 - 11:46 | 4605386 Kirk2NCC1701
Kirk2NCC1701's picture

You were busy doing 'something', while watching Rachel Madcow?

Sat, 03/29/2014 - 11:53 | 4605397 Kirk2NCC1701
Kirk2NCC1701's picture

ps. CNN had to get rid of Aaron Brown a few years ago, because he was too Old School -- code for "Too much journalistic integrity".

Enter Woof Blitzer et al. And please don't say "enter AC". 360 or otherwise.

Sat, 03/29/2014 - 12:03 | 4605409 DoChenRollingBearing
DoChenRollingBearing's picture

Nicely put, Cap'n.  Plus 1, sir.

Fri, 03/28/2014 - 22:29 | 4604660 holdbuysell
holdbuysell's picture

The trend is clear...when's the last time we've heard of another country with significant global trade adopting the USD for trade?

Those with significant trade are all diversifying away from the USD.

Edit: It's a market share issue. The USD has nearly 100% market share in significant trade countries and that share is declining at what appears to be a healthy pace.

Fri, 03/28/2014 - 22:29 | 4604666 walküre
walküre's picture

Shelf life of the Euro without a strong Dollar can be counted in weeks. Whatever the current German government does is crazy dangerous. Who is in charge? Merkel should call Obama to get the gold back pronto. He's a weak leader and just might make it happen. Otherwise don't bite the hand that feeds you!

Sat, 03/29/2014 - 11:55 | 4605400 Kirk2NCC1701
Kirk2NCC1701's picture

Don't bite the hand that Fed you?

Sat, 03/29/2014 - 12:05 | 4605405 Kirk2NCC1701
Kirk2NCC1701's picture

The Euro would continue. It would simply be revalued to its true value.

What, has it been that long, that even ZHers have forgotten Price Discovery?

ps. The real reason the Fed keeps pumping King Fiat into the EU, is not to help the EU, but to help itself: Find a pot big enough, to perpetuate its King Ponzi scheme. Geez, are people naive and easy to distract with every "loud, shiny, bouncy, whiz-bang" argument from TPTB.

Fri, 03/28/2014 - 22:33 | 4604669 JustObserving
JustObserving's picture

It is estimated that 140,000 people have already died in the Syrian conflict and the Nobel Prize Winner's best idea is to introduce more advanced weapons?  How would he like if the Taliban in Afghanistan got advanced weapons? After all, the Taliban opposed the growing of heroin, while under US and NATO occupation heroin production is up by a factor of 40 resulting in a million deaths some claim.  It would be insane to introduce advanced weapons in Syria as the war will intensify and many more will die but one expects no less from the Nobel Prize Winner:

More than 140,000 people, over 7,000 of them children, have been killed in Syria's uprising-turned-civil war, the Syrian Observatory for Human Rights said on Saturday.

Heroin production in Afghanistan increased 40 times since NATO began its ‘War on Terror’ in 2001, the head of Russia’s Federal Drug Control Service stated, adding that more than 1 million people have died from Afghan heroin since then.

Fri, 03/28/2014 - 22:35 | 4604686 disabledvet
disabledvet's picture

On the good side "they've been crossed off the to be nuked list" by the two warring factions here.

Sat, 03/29/2014 - 00:13 | 4604875 DoChenRollingBearing
DoChenRollingBearing's picture


+ 1 for yet another good observation.  Sadly true.

Sat, 03/29/2014 - 00:18 | 4604883 IridiumRebel
IridiumRebel's picture

+1 for you being you DCRB.

Sat, 03/29/2014 - 00:16 | 4604879 IridiumRebel
IridiumRebel's picture
Heroin overdose rates are up by 45% between 2006 and 2010. Correlation is not always causation, but I believe there seems to be a correlation between these unfortunate facts. Heroin is rampant here in S. Ohio and it was gaining traction when I lived in NYC. I remember hearing about a bad batch last summer killing people.

Sat, 03/29/2014 - 00:36 | 4604906 DoChenRollingBearing
DoChenRollingBearing's picture

IR, at tonight's meeting (two guesses...) I heard a couple of stories that were horrible.  One young thing mentioned that she was sober for 100 days, some clapped, but she then said that she thought she was a horrible person because she was eight months pregnant...

A 55 yr old lady (looked much older), an ex-prostitute, homeless and with lung cancer also practically broke my heart.

Lots and lots of pain out there.

Sat, 03/29/2014 - 00:45 | 4604913 IridiumRebel
IridiumRebel's picture

A girl died of heroin at a meeting in Whitestone Queens years ago. Dead on the bathroom floor. If you've got a pulse, you've got a chance if only to make amends. Be the light.

Sat, 03/29/2014 - 00:54 | 4604929 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, a fellow I "met" via ZH sent me a great book that has helped (not the "Big Book", I'm talking Emmet Fox, 1938), and you are right.  By making oneself better, you make the world better.

Making amends..., and:

" we forgive those who trespass against us..."

Get rid of the resentments, forgive, make amends and you are well along the way.

+ a gazillion

Sat, 03/29/2014 - 12:22 | 4605447 Kirk2NCC1701
Kirk2NCC1701's picture

Yeah, sure. Be the light. As in "help them see the Bright Light", while you inject of the cure: kinetic Pb. For every drug pusher in sight. On sight.

Warranty: Take Rx 4x daily for 3 weeks, and the national patient is cured.

Disclaimer: In spite of Do-Gooder pretenses to the CONtrary, the parasitic beneficiaries of crime -- the Clingons -- don't really want crime to be 'eliminated'. They simply want it "controlled", i.e. managed: for job security, profit and lifestyle.

Fri, 03/28/2014 - 22:33 | 4604678 fzrkid
fzrkid's picture

uhmarikah is the bully in grade school that everyone feared. Now everyone is older they shun the bully and he has no friends. Suck, why do I have to grow up in an era that sucks..

Fri, 03/28/2014 - 22:33 | 4604680 Yen Cross
Yen Cross's picture

 Japan has an 80 at best basis point yield on it's   JGB -10's

    People and traders get it! The balloon has already discharged/

Fri, 03/28/2014 - 22:36 | 4604688 Ban KKiller
Ban KKiller's picture

SA fears revolution big time! SA is a police state, oh, you prefer church state, ok. Can you imagine the people all sharing the wealth of a product under their feet? 

Obama? Who cares? The Banksters have their meetings to try to keep the masses controlled by using...finances, of course. 

March is on. Spring.

March is to the FED. 

Simple demands. 

Abolish the FED and return powers to the treasury dept.

Prosecute the big banks and force a break up. 

That's it.


Madison was a revolutionary at 23.

Fri, 03/28/2014 - 22:43 | 4604705 Yen Cross
Yen Cross's picture

 I'm not giving up! I'm pushing harder!

Sat, 03/29/2014 - 00:32 | 4604900 infinity8
infinity8's picture

You're losing your voice (and probably your avatar) again.

Fri, 03/28/2014 - 22:45 | 4604706 knukles
knukles's picture

CNN has a special on about some airplane that's gone missing!
Anybody hear about that?


Fri, 03/28/2014 - 22:51 | 4604722 cossack55
cossack55's picture

Amelia again?  Enough already.

Fri, 03/28/2014 - 22:52 | 4604726 Jim in MN
Jim in MN's picture

Was it a young, blonde, Caucasian airplane?  Cuz everyone needs to see that shit 24/7.

Fri, 03/28/2014 - 22:57 | 4604733 nmewn
nmewn's picture

It went into the same black hole as David Gregory's prosecution for introducing "contraband" into DC while being televised nationally doing it.

Its like it never existed.


I see the teachers union has given its approval to move some DC public school kids into Sidwell Friends School...wonder how thats gonna work out ;-)

Sat, 03/29/2014 - 12:25 | 4605466 Kirk2NCC1701
Kirk2NCC1701's picture

Well, thank God it wasn't a Saudi plane, or an El Al flight!

Fri, 03/28/2014 - 22:51 | 4604721 Yen Cross
Yen Cross's picture

 I just traded the / Never mind

  Downvoted for making Fiat.  I'm doing something right!

Fri, 03/28/2014 - 22:52 | 4604724 Yen Cross
Yen Cross's picture

 Niddle Easteern pin diks

Fri, 03/28/2014 - 22:57 | 4604734 Jim in MN
Jim in MN's picture

Bloombergian Newsea:

Hogs Head for Biggest Rally in 15 Years on Deadly Virus

Hooray!  Plague!  Yippee!

Fri, 03/28/2014 - 23:01 | 4604741 esum
esum's picture

putin's end game is the immobilization of nato and its ultimate breakup.... then he rolls thru east europe unimpeded....

obama calls pope a liar.... the saudis are telling obama they are buying bombs from pakiland... obama is asking the sauds to unelash the terrorists within russia... wait for the obama selfie  

germany is protecting its economic interests first and nato a distant second... 

Fri, 03/28/2014 - 23:13 | 4604773 Shad_ow
Shad_ow's picture

nice summary. thanks

Sat, 03/29/2014 - 03:22 | 4605022 Ifigenia
Ifigenia's picture

Nato is USA and slaves, breaking Nato will set us free. Or do you think the people care what those shits leaders say?

Sat, 03/29/2014 - 12:29 | 4605474 Kirk2NCC1701
Kirk2NCC1701's picture

0sum, NATO is the footrest, the patsy, the Useful Tool of the US.

Are you gullible and simple, or hoping we are?

Fri, 03/28/2014 - 23:11 | 4604768 Parafuso
Parafuso's picture

Fact is most of the rest of the world has burned out on the US negative value-added B$, and has just now found the ambition to pursue alternatives-- Which in the big picture is useful. It has nothing to do with the current occupant of 1600 Penna. Ave, whom one cannot defend in any case. Prior it was the malefic tribe of the genetically challenged Bush family and the intellectually compromised morons that vote in dynasties... Be they Bushist fascists or now the granola fascists.... Take your pick....Wishing all clear paths forward....

Fri, 03/28/2014 - 23:18 | 4604786 Nexus789
Nexus789's picture

China and Germany talk trade. The US seems incapable of doing anything nowadays without refrence to the military, weapons, etc.

Fri, 03/28/2014 - 23:25 | 4604799 laomei
laomei's picture

It's the obvious move really.  USD acts as nothing more than a useless middleman.  The fate of all useless middlemen is to be cut out.  Why should Germany have to buy USD to import things from China, and then China deal with the USD?  Why should China be forced to buy USD to import things from Germany and then Germany deal with the USD?  Far simpler to just deal directly in Euro and RMB and use it directly, shaving off a few percent that is lost to the middlemen and sidestepping US policies regarding USD transactions.  

The only beneficiary to the dollar-regime is the US. Being that as everyone needs USD, everyone accepts USD for forex transactions, thus making it highly liquid and no real questions being raised.  Somolia has no need for Vietnamese Dong and vice-versa, but USD makes a convenient middleman.  However this transaction increases costs for all apart from the US.  Gold solves that problem, as it's universal and controlled by no central authority, however, gold is not without problems itself.  Ideally, you are looking at a global "bank" of sorts, dominated by none, controlled by none, acting merely as a clearing house and taking no cut.  Accepting all forex and spitting out what is needed to clear cross-border trade.  This is the basket, the SDR system and it would be a good thing.  The problem is that the US would not benefit in any way from this and it would destroy the petro-dollar.

What happens when everyone is sitting on USD that has sudenly become rather useless to them? They dispose of it by returning it for goods/services back from whence it came.  Problem for the US is that there's more USD outside the system than inside of it and when you're talking in the billions and trillions, that cash isn't going to be spent buying output, it'll be buying physical capital that generates said output.  The first major stakeholder who dumps is the one that wins, as that kind of cash flow seriously depreciates the value of the remainder.  Ideal targets are IP-holders and tech companies that can be relocated as well as captive-market investments which are too entrenched to be messed with.  It's the only realistic end-game apart from flat out default.  How many dollars are we talking? More than 80% of the total.  Conservative estimates somewhere north of $40 trillion that has been effectively quarantined from the system.  Tack on another $20t circulating aboard and another $7t or so in foreign reserves.  $67t flooding back into a system that is putt putting along with $1.2t in total circulation.  Enjoy that outcome I guess.

Sat, 03/29/2014 - 00:05 | 4604865 IridiumRebel
IridiumRebel's picture

I think you nailed it. The middle man USD is steadily being pushed aside. The flood of greenback blood will wash up on the shores of America. At that point, we are dead. We are basically dead already.

Sat, 03/29/2014 - 02:07 | 4604975 laomei
laomei's picture

The real problem is that the USD, apart from oil, makes no sense anymore.  If a nation is a net exporter and has large amounts of trade globally, then, by default, it's a currency to keep stocked.  That's the whole point of petrodollar, except that it still makes no sense, as the US isn't an oil exporter.  Ending that petrodollar regime brings the whole thing down.  What makes sense for oil exporters? Swaps of credit for things they actually need, from countries they actually need it from.  Africa and the ME... USD makes zero fucking sense, what does make sense is development deals to get them away from such utter reliance on fossil fuel exports.  And that, primarily, is what China's been doing.  The China/Russia pact would get interesting quickly.  Endless resources next to a country that can use them, and on the flip side, endless labor next to a country that has a shortage.  A Russia-China alliance is just about the scariest thing there is to the west.  Scary enough to probably find a false pretense for war.

Sat, 03/29/2014 - 00:15 | 4604876 Bastiat
Bastiat's picture

I've been expecting that outcome for years.

Sat, 03/29/2014 - 02:07 | 4604977 Telemakhos
Telemakhos's picture

The first major stakeholder who dumps is the one that wins, as that kind of cash flow seriously depreciates the value of the remainder.

And there's the rub: beggaring all your neighbors at once by cratering the majority of their foreign currency reserves for your own benefit causes a lot of disharmonious feelings.  Bancor can't arise from a unilateral move.

Sat, 03/29/2014 - 04:34 | 4605058 JustUsChickensHere
JustUsChickensHere's picture

Strictly speaking, when you say a global "bank" controlled by no one, acting as a clearing house, and not charging a cut.... you just described the Bitcoin system.

(and I know I will get slated for this comment - Oh well - Fight Club rules)


Sat, 03/29/2014 - 09:16 | 4605205 laomei
laomei's picture

Sure, except that bitcoin is highly volatile and not without flaws built-in.  Quite a few options of how to structure such a fiat-based setup, especially if you bring together the central banks and effectively auction off the various currencies that are held as surplus in return for alternative forex or domestic currency... Such a scheme creates an obvious problem however... you can't just be a leech on the planet, you have to actually make or provide things that other partners want.  It also would encourage the balancing of trade.  Sure, gold would do the same thing in theory, but gold, as lovely as it is, has a good long history of its own problems.

Sat, 03/29/2014 - 11:48 | 4605391 DoChenRollingBearing
DoChenRollingBearing's picture



A very short, but concise, BTC confidence builder:

THIS is the kind of stuff fonestar should be posting.

Sat, 03/29/2014 - 09:38 | 4605212 Ignorance is bliss
Ignorance is bliss's picture

Do you mean like the Chinese buying IBM's server division or perhaps Smithfield Farms (largest pork producer in the world). If you really consider technology today it's almost all produced in cheap labor markets. A lot of the development is coming out of India and not the U.S. An example of strategic tech being outsourced: Manned missions to the space station are outsourced to Russia. What do you think happened to all those layer off rocket scientists? Lastly the NSA spying program has pushed countries to adopt anti-U.S. Tech. Technology is going global with decreasing participation of U.S. Tech companies. See recent tech company revenues to understand the distrust the U.S. Government has created and the resulting blowback on The U.S. Technology industry.

Sat, 03/29/2014 - 10:56 | 4605318 laomei
laomei's picture

YEP, that exactly.  NSA spying revealing the obvious (that nothing coming out of the US is secure), opens all kinds of wonderful potential insofar as IP goes.  Just flat out copy everything, ignore the IP and exclude the US market.  As long as you can show it is secure and not subject to NSA (or other) fuckery, there's a massive market for it now.  The US will cry and whine about it, but who cares?  If Intel chips are shown to be compromised, what's to prevent a determined competitor from copying it all and excluding the parts that are undesired?  Just flat out plug and play replacements.  Intel can sue, and you can just ignore it.  They wet their bed, now they can lie in it.  Quite simple stuff really, just take the position of "not intended for the US market" and ignore it.  Internet in China's been a bit slow lately.. why? Because they are pulling out everything US-sourced, auditing the infrastructure and locking it the fuck down.  In the meantime, China's doing what Japan should have done when they had the opportunity.  Don't piss away money on "status symbols" to show off like some new money idiot (they made so many horrible investments).  Rather, start ganking the blue chips and what you can't buy, you undermine.  

Fri, 03/28/2014 - 23:40 | 4604821 joego1
joego1's picture

Hi Ho! Hi Ho! It's off to fuck up the world O goes!

Fri, 03/28/2014 - 23:46 | 4604831 Notsobadwlad
Notsobadwlad's picture

I wonder when it will hit the useful idiots who run America's large public corporations that they have not only sold out their country, but also destroyed their companies and their own wealth.

When the dollar goes, they go.

... but they were conned because they believed the lies that they are special and part of a club or the oh so important.

Sat, 03/29/2014 - 00:49 | 4604923 scraping_by
scraping_by's picture

Yes, it's sobering to think of how much of our lives are determined by office politics at large coporations. Sad that government entities like hospitals and universities have bought into that management mythology.  Soon everyone will be spending their days in meetings and never see the collapse out the window.

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