Peter Thiel Warns Of "Government Bubble Of Massive Size"

Marc Faber warned last week that central-bank-funded deficits were creating bigger and bigger governments which implicitly reduce the dynamism of the economy and slow growth. Today, it was billionaire venture capitalist Peter Thiel's turn to make the anchors on business media squirm a little in his unleashed truthiness. Having predicted the current surge in volatility just weeks ago (due to the end of QE), Thiel believes "the thing that is most distorted is the bond market and fixed income, and perhaps less on the equity side," but, he warned, "we certainly are back on a government bubble of massive size," and as Faber notes, that means slower growth as Thiel notes, with regard Tech investing "investors always overrate growth."

Comments

[Fuku Ben]

There starting to roll out the big boys to warn the slumbering masses

The witching hour is near

[X.inf.capt]

'bout time...

lets get this party started..

[Stormtrooper]

Not quite ready to party yet.  I'm waiting to get the latest shipment of PM's delivered into my greedy little hands before armageddon begins.

[X.inf.capt]

long...

metal detectors...

[Headbanger]

Long AR500 metal.

[Chupacabra-322]

It's going to get down right Flithy. Been lock'd & loaded for a long time. By the way, Troll Alert Agent Smith out in full force down arrowing the voices of reason.

Fuck you!!!

[falconflight]

Fuck his family too.

[Headbanger]

You guys have been hanging out with me too long.

[GubbermintWorker]

It's very obvious when there is only one down vote and a plethora of up votes ;)

[SilverIsMoney]

indeed... http://www.telegraph.co.uk/finance/economics/11159649/The-great-Lira-rev...

[rbg81]

Yeah....its easy to be smart later.

[Radical Marijuana]

Indeed, Fuku Ben, as demonstrated by this story:

http://www.dailymail.co.uk/news/article-2790469/bankers-caused-crash-got...

Bankers caused crash and got away with it, says Carney: Bank of England chief says bosses should have paid a higher price

I think it is RIDICULOUS to talk about "big government" when that government is actually controlled by the banksters, who are therefore, by definition, "bigger."

[X.inf.capt]

oh, now their looking for credibility...

[starman]

Can't wait for the "told you so" fucktards lining up on MSNBC to explain the size of their crystal balls!

[Uber Vandal]

You mean all of the trolls who will pop out of the wood work on here who will say how they saw that the market was a huge bubble all along, sold at the top, and bought a ton of TVIX, UVXY, VXX, FAZ, etc when it was dirt cheap to boot?

Yes, I am waiting for that too.

[eXMachina]

LOL well I did buy UVXY$200Jan'15 calls@$0.38 (now $3) a piece near the top so count me on board *choo choo*!

[Headbanger]

Oh you mean like me Vandal??

[bunnyswanson]

http://www.rense.com/general27/gad.htm

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

 

"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.

 

"Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

 

"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any."

Poisoned

[Gringo Viejo]

Yesterday's news. When this thing pops.....as the old saying goes......

"You ain't gonna believe what's happenin' to 'ya, even while it's happenin'".

[401K of Dooom]

This from the guy who says the democrats are smarter?  Thanks Peter, I'll trust my mothers bunions to make better economic predictions!

[Yen Cross]

  JFC, tell me something I don't know. Captain obvious is on stage.

 Any sane, prudent, smart, Z/H reader has been assraped like a Camel at an Iraqi oasis(palm plantation) over the last 6+ years.

  Think I'm going to have to short usd/jpy into London, if it can't break the highs from last Thursday-Friday.

  Hi fanboy.

[DipshitMiddleCl...]

long EUR/USD?

[Yen Cross]

lol. I'd take the Cable side of that trade. The euro is under pressure in the cross. (eur/gbp)

 I think Cable is going to move back towards the 200 H-4 area.(1.6250>ish)

 These are intraday trade ideas. I'm just guaging the r/r (risk reward) against previous levels.

 Defining my risk tolerance <>

[eXMachina]

I'd be more inclined to say that cable is taking the tube express to 1.572 prior to your destination.

[SillySalesmanQu...]

Bubbles, meet Pop and Whooosh.

[AdvancingTime]

Both I and history agree!

[Jack Burton]

You have to believe it is true that Central Bank Printing has allowed the Washington DC government to grow in a giant chocking monster of spies, cops, agents, investigators, regulators, arms makers, warriors and their mass of private sector dependents. All the evil of this monster is enabled by the Money Printers and Central Bankers. We have a government bubble that is just off the charts. "Department of Homeland Security". "Drug Enforcement Agency" "National Security Agency", Central Inteeligence Agency" "1 trillion dollar a year Pentagon" "A thousand Regulatory bodies in bed with those they regulate". This is just a tip of the iceberg of Washington bloated enterprise killing police state government in Washington. As our economy burns, they sit around thinking of how to fight ISIS, a terror army that they themselves armed, funded and trained, and 1 year ago was praised as our allied Free Syrian Army, but in fact, they were ISIS all along.

[i_call_you_my_base]

It's easy to see, just look at DC and the surrounding communities. If people ever want their money back, that's where they should start.

[DipshitMiddleCl...]

In 5 years..parts of Central NJ and North NJ, Connecticcut, Long Island and parts of Upstate New York where all the hedge fund dudes live will look like Apartheid Africa.

Nice gated communities with armed personnel and a bunch of rabid savages (blacks, latinos, poor whites) trying to break in for some food.

Anyone living in the Northeast is going to have a rough time unless they're part of the tribe (Super elite jews and super elite WASPS)

The dagos are fucked too!

~Dipshitmiddleclasswhiteikd

[i_call_you_my_base]

Agree, but those rich hedge funders were there before. My point is more about what has happened to the DC area over the last decade / 20 years. DC and the surrounding areas are the only places that have seen any sort of "growth". There was a good ZH graph on it some time back.

[rbg81]

I just want to see the looks on their faces when their fuking EBT cards stop working.  Whatever shitstorm happens afterwards (and it will be one for the recordbooks), I will die happy and vindicated.

[spqrusa]

I guess you didn't get the memo - 16th amendment to turn all US subjects into chattel, 17th amendment to dissolve the Union (Republic), Federal Reserve Act to provide unlimted War Making Power, National Security Act to make permanent the coup of 1917. The USKKKA has been a military junta since WWI. 

[Pig Circus]

When I talk like this people want to have me committed. This guy gets a post.

[DipshitMiddleCl...]

At this moment, 10:15 PM ET

The Put/Call ratio on the $SPY etf is at 0 for October 14th expirys on the option chain (using Yahoo finance data) using VOLUME

This fucking thing is going to fall through a black hole!!

~DipshitMiddleClassWhiteKid

[Jack Burton]

Ya think we are finally looking at the real correction before the storm? When does fear take over? With machines doing 8 out of 10 trades, I can't tell when fear will drive equites. How does fear drive complex math and software traders? I am clueless to predict a machine driven market.

[SillySalesmanQu...]

+ 100
"I want trading closed right now! Turn those machines off! Turn those machines off now...."

[DipshitMiddleCl...]

Well, it looks like the Yellen Carry Trade will be over sooner than we thought.

I can't predict the market either but this shit seems like its going down, and hard as fuck.

~DipshitMIddleClassWhiteKid

[PADRAEG]

I KNOW this girl!

[world_debt_slave]

the shoe will drop when EBT goes dry

[Spungo]

Bubblevision makes a lot more sense if you mute the TV and play this song while the talking heads are talking:

https://www.youtube.com/watch?v=l58NESfWDmQ

[djrichard]

How come these goons go after the Fed Gov when the equity market blows up?

[falconflight]

The pols and their bureaucratic enforcers will simply raise taxes and fees for living.  This is easy for them with nary a consequence.  

[damicol]

This is ging to be the easiest and most profitable 2 to 3 years I have seen since 2009.

Easy, bought first big tranch of SPXU at 43.70  late Sept nd now each day is easy peasy,

Just watch a higher than average SPY open and biy more SPXU,. No big movement up or   movement down on SPY opening, leave well enough alone,

The bigger the SPY open is the up the more SPXU I buy.

Thats all I need to do each morning for next two or three years.

 So far up 19% and zero sweat.

This is the gift of a lifetime.

[DipshitMiddleCl...]

Nice.

Learn something new everyday here at ZeroHedge.

~DipShitMIddleClassWhiteKid

[lasvegaspersona]

Possible problem...no fiat currency has ever died a deflationary death. Paper can and always has been printed. Deflation does not have to be and never has been tolerated....so the fed could mess with your plans...and almost certainly will...they'll find some excuse to halt the fall...because that's their job...and it is easy.

[AdvancingTime]

Many people are looking for a "dis-inflationary crash" and it is possible or we may see money shift from bubble to bubble. I have pondered the possibility that what we are and have been going through is the "major deflationary period."

More and more often we seen Central Bankers forced to pull rabbits out of their hats. When we stand on the abyss central bankers will be forced to print so much worthless paper the money it will act as a cushion to our fall (sarcasm) but not change the reality. Before you discount this possibility that we will move directly into the final stage of hyperinflation consider that hyperinflation paves an easier transition to a replacement currency and a reset of the system.

 http://brucewilds.blogspot.com/2014/10/fed-concerned-that-stong-dollar.h...

[damicol]

Absolutely agree , hyperinflation is the end game and it is  impossible mathematically to avoid in the end.

Thats why as I buy SPXU and the paper profits build relentlessly as the market goes down, and despite several reverses on the way you cannot count a bottom until the fundamentals across a broad spectrum are  are screaming buy me.

But  by the time that happens this time , it will crash crash burn and turn to dust,  and it is the reason that all paper profits from buying SPUX are converted into  physical gold I buy  and then use as the security to fund further SPXU

Pyramiding all the way down  but any hope that this will bottom in less than 2 to 3 years are utterly delusional.

By which time I hope to have about as much gold  in my underground vault as China

[RichardParker]

Just as the universe is expanding faster and faster, central governments are expanding faster and faster.

[jubber]

just got a lot bigger !  10y UK 2.903% 10y US 2.196%

[AmarUtu]

Average Wage OR Income Growth * Population Growth * Job Creation / Unemployment Rate = Annihilation

I can definalty see a bubble, unfortunately thats what we live in.