Gold, Complacency, & Why Hookers And Bankers Share The Same Neighborhoods

Tyler Durden's picture




 

Submitted by Tim Price and Simon Black of Sovereign Man blog,

Sometimes I am convinced it was completely by design, and not a weird little coincidence, that one of Germany’s most sprawling red light districts is just steps away from the European Central Bank.

This fact becomes comically obvious right around happy hour... as self-congratulatory ECB economists and their bureaucratic bank underlings crowd the bars and cafes after work which are simultaneously frequented by pimps, thugs, and other assorted low-lifes.

One would be forgiven for legitimately asking the question: which of these professions has done more damage to humanity?

My [fiat] money’s on the bankers.

These are the same financial luminaries who, recently, crowded aboard the good idea bus and decided to take interest rates NEGATIVE.

Their logic was that prices aren’t rising enough. This was actually the headline this morning that ran across the Rai (Italian news) ticker while I was consuming some egg-like substance at the hotel breakfast buffet this morning in Rome.

The newsman said something to the effect of “Low inflation makes economic problems worse in Europe.”

Ah, yes. Precisely. The problem isn’t an absurd level of over-regulation, massive unsustainable debt, insolvent banking systems, idiotic politicians, etc.

THE problem plaguing the entire continent... the problem behind sluggish growth for all these years... is that consumers aren’t getting screwed fast enough.

It’s hard to even know where to begin with such an epic level of stupidity. First of all, it’s not even true.

Having just spent the last few months traveling across most of the continent, I was astounded to see the speed with which prices had risen in many places.

I just capped off a week-long vacation with my fellow teammates at Sovereign Man in Italy... same place as last year... and I was charged a whopping 50% increase over last year’s rates.

But this sort of truth doesn’t matter to an economist who actually believes in his ‘science’. It is this ‘science’ of economics which tells us that outsized government debts are irrelevant. That awarding the power to conjure paper money out of thin air is a sound, credible system.

Yet it’s not working. Much of Europe (like Italy) has fallen back into recession.

Even here in Germany, which is supposed to be some sort of econo-mythical superhero carrying the rest of Europe around on its shoulders, the government just announced that the economy contracted last quarter.

Whatever these economic policymakers are doing, it’s obviously not working. So naturally the solution is to try more of the same. Much more.

They’ve already taken certain interest rates into negative territory. The expectation now is that they’ll ratchet rates even further into negative territory.

In doing so, they are effectively screwing hundreds of millions of people. Every single person on the continent who is a responsible saver. Every pensioner. Every retired schoolteacher. Every student. Everyone who works hard for a living and can already barely make ends meet.

Their lives are all about to get a lot more difficult.

Even for the well-heeled, life has become quite stressful. Think about it– there’s almost no place left anymore to hold your savings.

Putting cash in a bank practically GUARANTEES that you will lose money on an inflation-adjusted basis. Stocks are at precarious all-time highs. Bonds are at all-time highs. Many real estate markets are back in bubble territory.

These people have destabilized nearly every major asset class in existence.

On the balance, I’d rather deal with the seedier characters in this neighborhood rather than the suitpanted PhDs pretending to do honorable work.

I want to share more with you about this… not only my thoughts, but those of my colleague Tim Price.

Tim is a regular contributor to this column and one of the few people in professional finance for whom I have tremendous respect.

Tim joined us earlier this week on our group vacation in Italy, and I fortunately had the presence of mind to record our conversation; his insights are absolutely not to be missed.

I encourage you to give a listen here: (click image for link)

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Wed, 08/20/2014 - 16:38 | 5121824 Bloppy
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Business Insider bans all comments on Ferguson-related stories

http://tinyurl.com/laga2ye


Wed, 08/20/2014 - 16:40 | 5121835 wallstreetapost...
wallstreetaposteriori's picture

hookers..... we call them business escorts where I'm from... paid fully on your corporate credit card.

Wed, 08/20/2014 - 16:44 | 5121845 Latina Lover
Latina Lover's picture

Comparing hookers to banksters is an insult to a noble professional.  If you want fairness, rent a hooker; you go to a banker to get fucked.

Wed, 08/20/2014 - 16:49 | 5121870 JohnG
JohnG's picture

 

 

"... as self-congratulatory ECB economists and their bureaucratic bank underlings crowd the bars and cafes after work which are simultaneously frequented by pimps, thugs, and other assorted low-lifes."

Honest thugs as opposed to bankers. Hmmmmm......

Wed, 08/20/2014 - 17:34 | 5122149 Wolferl
Wolferl's picture

Always good to know Janet`s plunge protection team is on YOUR side of the market. Up to new ATHs on Friday during her speech. Doesn´t matter what she has to say.

Wed, 08/20/2014 - 17:36 | 5122170 Manthong
Manthong's picture

Hmm..

Looks like I might want to make a deposit.

Wed, 08/20/2014 - 16:56 | 5121903 SoilMyselfRotten
SoilMyselfRotten's picture

As Willie would say, 'cuz thats where the money is'

Wed, 08/20/2014 - 17:30 | 5122121 TeethVillage88s
TeethVillage88s's picture

Latina Lover;

I tend to agree. Poor people and people that want to get ahead somehow will try the sex-trade with no other options and no loans for education or business.

Gathering knowledge about Bankers... Small Banks & Credit Unions & maybe Public Banks in Latin America... might have decent bank officers. I used to think Swiss Banks were conservative, but this whole element of them spying in WWII and doing deals with the Nazis doesn't sound innocent. Vatican started acting like the same kind of bank it seems with the "Ratlines". Information & Money & Hookers = like Guns & War.

Definitions need to expand:

A) Small Banker or Bank Officer
B) Hyper, Sexed Up, Steroid taking, Child Killing, Super, Wall Street, Elite Banker
C) Engineer or Scientist Turned Financial Manager (AC-DC- could go either way and sits in Interregnum till he decides)

Must be a lot of Gray area here though.

Wed, 08/20/2014 - 18:41 | 5122495 Kirk2NCC1701
Kirk2NCC1701's picture

That's fine for those who can afford one.  For those who are price-conscious "solo players", there's beeg.com

Wed, 08/20/2014 - 17:01 | 5121944 bluskyes
bluskyes's picture

Both a meal, and entertainment, depending on your tastes.

Wed, 08/20/2014 - 18:37 | 5122471 Kirk2NCC1701
Kirk2NCC1701's picture

Hold the moldy cheese, please.  And skip the 'Con Fungi'.

Wed, 08/20/2014 - 16:43 | 5121842 Rainman
Rainman's picture

what is this Business Insider ? 

Wed, 08/20/2014 - 16:44 | 5121844 NOTaREALmerican
NOTaREALmerican's picture

Good for them.   Who needs to listen to people with racial OCD and victim OCD argue past each other for weeks.  It's like listing to the (R)etard and (D)umbasses argue.   What's the point?

Wed, 08/20/2014 - 18:08 | 5122344 Keyser
Keyser's picture

We can only hope their heads explode from all the politcally correct nonsense...

Wed, 08/20/2014 - 17:02 | 5121943 Toolshed
Toolshed's picture

And? BI is a tripe fest of the .gov mouthpiece sort. No one with a clue goes there except for laughs.

Wed, 08/20/2014 - 17:17 | 5122037 Nassim
Nassim's picture

These are NOT SWISS. The are PORTUGUESE

Wed, 08/20/2014 - 16:39 | 5121828 dbTX
dbTX's picture

Location, location, location

Wed, 08/20/2014 - 16:41 | 5121838 NOTaREALmerican
NOTaREALmerican's picture

Inflation is just the word used to describe the rate of increase in human optimism.   The brilliance of the smart-n-savvy people is shown by creating a financial system that taxes people for optimism (inflation).    It's absolutely brilliant.   Sometimes, you've just got to stand in awe of the smart-n-savvy people.  I wish I had thought of that.

Wed, 08/20/2014 - 17:53 | 5122264 TeethVillage88s
TeethVillage88s's picture

Reminds me of Taxes on Capital Gains that haven't been realized yet... and property taxes.

I haven't had the displeasure of having to pay taxes on stocks that went down, but at tax time it shows you owe taxes.

Wed, 08/20/2014 - 21:17 | 5123182 MeelionDollerBogus
MeelionDollerBogus's picture

smart-n-savvy citizenism - it never gets old.

Wed, 08/20/2014 - 21:40 | 5123329 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

smart-n-savvy citizenism - it never gets old.

Ah, ah, an observation of validness. Slow-motion eagles age very slowlier within the smart-n-savvy citizenism context.

The current situation is non uniformously detrimental to all people.

Wed, 08/20/2014 - 16:41 | 5121839 Sudden Debt
Sudden Debt's picture

We live in a culture where woman don't really see a problem being a hooker and guys are porn addicts.
Just type any word in google images, red, star, donkey, ape, horse... Anything and you'll get filthy porn shit.

And as a parent, you want to smash laptops and tablets against a wall when you see your kids watching that. And just try to explain that crap to a 10 year old...

Wed, 08/20/2014 - 16:51 | 5121882 NOTaREALmerican
NOTaREALmerican's picture

The magic of the American predator society is how it rewards natural human behavior.      It's one reason we're the most powerful predator country on the face of the earth. 

Wed, 08/20/2014 - 16:53 | 5121884 debtor of last ...
debtor of last resort's picture

My 5 year old asked: dad, what's porn? I said, google 'Yellen', 'porn' and 'chart'. You have to start the education in an early stage.

Thu, 08/21/2014 - 00:52 | 5124034 hedgiex
hedgiex's picture

LOL

Wed, 08/20/2014 - 16:53 | 5121894 SofaPapa
SofaPapa's picture

The line between "porn" and pop culture has been beyond blurry for years.  Similarly the line between a "sugar daddy" and a "john".  This is a society tearing itself apart.

Wed, 08/20/2014 - 17:46 | 5122226 TeethVillage88s
TeethVillage88s's picture

That means we are Normalizing to be more like Asia & Europe.

Maybe this is part of the negotiations for TPP, TAP, DAFTA-DR, or whatever name they use for the Treaties.

Funny how the First Country to Sign CAFTA-DR is now being let Migrate to USA with our Borders wide open.

Hm... probably the Royal Families in the Middle East also secretly approve of Hookers, Porn, and exciting pop culture with lots of skin and simulated sex.

USA was Unique in a few ways. Not for having democracy, since we have a Republic. Not for being firm against socialism, since we have Medicare, Social Security taxes, and Medical & Pension for US Congressmen. We are unique because:

A) We had a moral majority, strong principals, strong conservatism until the 1960s
B) Gun Rights & Lots of Guns & Ammo
C) Lots of Cheap land for homesteading or staking a mining claim
D) US Constitution with true Equality, Freedoms & Rights to ensure Liberty
E) The world First Middle Class, and a big one by 1960s

Now Federal Government & Sitting US Presidents: 1) Lie to US About War 2) Give away Rights in Treaties 3) Dissemble the US Middle Class

How shameful for President Barak Obama, G.W. Bush, Bill Clinton, Hillery Clinton, Lindsey Graham, John McCain, Peter King, Rudy Guiliani, Mayor Bloomberg, Allan Greenspan, Colon Powell, Don Rumsfeld, Dick Cheney, Liz Cheney, Paul Wolfowitz, John Bolton, the US Supreme Court, the SEC, FINRA, Hank Paulson, Tim Geithner,... and now Janet Yellen.

Wed, 08/20/2014 - 21:14 | 5123167 MeelionDollerBogus
MeelionDollerBogus's picture

You definitely don't have a republic, nor should you want one.
A republic is a bastion of tyranny ruled by an elite but not a corporate elite.
You have a corporate fascist tyranny & trading it in for a republic tyranny is not very smart.

Wed, 08/20/2014 - 16:57 | 5121911 sleigher
sleigher's picture

Want to?  I admit I have lost my temper.  Seems my blakhole list of sites just gets longer and longer on the FW.  Kids don't understand but they will one day.  Hopefully they don't hold it against me.

Wed, 08/20/2014 - 21:12 | 5123158 MeelionDollerBogus
MeelionDollerBogus's picture

That's why you use a white-list.
Kids are approved to see what you personally approve & nothing else.
Or, you let your kids grow up, adapt & learn on their own and they get smart enough on their own to filter out what's not worth seeing, just like you would without someone watching over your should to make it happen.

Wed, 08/20/2014 - 17:08 | 5121978 fukidontknow
fukidontknow's picture

Nope just got donkeys apes and horses - no porn shit. Must be something to do with your filthy search history.

Wed, 08/20/2014 - 17:10 | 5121990 HamRove
HamRove's picture

It's easy...

"Little Johnny, sometimes when a man and a hippo love each other VERY much......."

Wed, 08/20/2014 - 17:23 | 5122096 BandGap
BandGap's picture

Don't ban a damn thing. Don't smash anything. Pornography plays to the lowest common denominator in all of us.

Teach your kids self respect and respect for others. It is a daily lesson in life.   Teach them to use their minds to control impulses. 

Sometimes they will fail, as we all do. But it is important to stay on message. In the end they embrace being respected and earning the respect of others. They learn the human condition.

 

Wed, 08/20/2014 - 21:10 | 5123143 MeelionDollerBogus
MeelionDollerBogus's picture

Actually no, it doesn't.
Not all porn is for all viewers but just about all porn can keep a man occupied so he doesn't get chumped into wifing up someone who in all reality isn't marriage material, much less dating a girl who's -10 on a scale of trustability no matter how she might look.
Married guys are chumps, period.

It matters not how smart you invest nor how much: in a divorce she can take it all, half up front, the rest from alimony, and then there's any giant chunk of change per child a judge sees fit.
I don't care what you feel, investing isn't about feeling if you're doing it right. And in terms of managing risk for investing & saving about the worst thing a male can do in various nations, including Canada, US, Britain, is to be married.
It's a legal contract where all the benefits usually go to one party & all the penalties to the other. Guess who.

Wed, 08/20/2014 - 16:44 | 5121843 Ban KKiller
Ban KKiller's picture

Hampton whores have Ebola. They caught it from Wall Street...

Wed, 08/20/2014 - 17:34 | 5122150 CHX
CHX's picture

<<< WIN-WIN

<<< LOSE-LOSE

Wed, 08/20/2014 - 16:45 | 5121851 kchrisc
kchrisc's picture

"Why Hookers And Bankers Share The Same Neighborhoods"

Don't offend hookers like that. Hookers provide a service, banksters steal and utilize the violence of government to backstop their theft.

An American, not US subject.

 

"Save the planet, guillotine a bankster."

Wed, 08/20/2014 - 17:16 | 5122034 assistedliving
assistedliving's picture

hookers i never worry about, its the pimps...usually w/ names like the 'squid', shCiti, JP, Dutche, Bony

Wed, 08/20/2014 - 17:25 | 5122112 Hubbs
Hubbs's picture

Time to ask a new question to replace the old one asked of Willie Sutton. Why do you rob banks? Because that is where the money is, with  asking  prostitutes why they hang out by Central Banks? Because that is where the money is.

 

Wed, 08/20/2014 - 17:34 | 5122118 Radical Marijuana
Radical Marijuana's picture

"... which of these professions has done more damage to humanity?"

Clearly, the biggest gangsters are the banksters.

Prostitutes dod not control governments,

BUT, banksters control governments!

Banksters dominated the mass media,

to turn those into "presstitutes," etc..

Wed, 08/20/2014 - 17:32 | 5122139 are we there yet
are we there yet's picture

A red light district also surrounds the Vatican.

Wed, 08/20/2014 - 17:38 | 5122176 Ludwig Von
Ludwig Von's picture

"as self-congratulatory ECB economists and their bureaucratic bank underlings crowd the bars and cafes after work"

 

In Brussels it is within working hours. And declared as working expenses.

Wed, 08/20/2014 - 17:43 | 5122206 e_u_r_o
e_u_r_o's picture

getting really sick of this boring gold action

Wed, 08/20/2014 - 18:50 | 5122537 greatbeard
greatbeard's picture

I think that's the intent.

Wed, 08/20/2014 - 17:44 | 5122214 cpnscarlet
cpnscarlet's picture

Funny, but so far it's all about hookers and not a single comment about gold.

Stupid of me to notice, I guess. It's just a shiny relic with no purpose. But at least we all know what hookers are for. Some things are more eternal than others I guess.

Wed, 08/20/2014 - 17:49 | 5122240 Cacete de Ouro
Cacete de Ouro's picture

Who is this Dimon Black character ?

Show your face Jamie Dimon Black, go on, I dare you!

Wed, 08/20/2014 - 17:51 | 5122248 TradingTroll
TradingTroll's picture

"Putting cash in a bank practically GUARANTEES that you will lose money on an inflation-adjusted basis."

 

Then he says stocks and bonds are at alltime highs. But wait. American's #1 source of wealth storage is housing, which is lower than 2007's peak.

 

That means asset DEFLATION for most.

 

For most, putting money in the bank meant they beat the average who stored money in their house-which lost value.

 

So there is no inflation, lets take care of that right away.

 

 

Wed, 08/20/2014 - 18:04 | 5122322 Rollerball
Rollerball's picture

Monetary value lies in the eyes of the beholder, not the beholden.

Wed, 08/20/2014 - 18:10 | 5122348 armageddon addahere
armageddon addahere's picture

"Append a list of bank employees, broken down by sex"

It was cocaine and whiskey that did the damage.

Wed, 08/20/2014 - 18:52 | 5122539 ToNYC
ToNYC's picture

A distinction without a difference.

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