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We Live In An Era Of Dangerous Imbalances

Tyler Durden's picture




 

Submitted by Adam Taggart via Peak Prosperity,

The intervention by the world's central banks has resulted in today's bizarro financial markets, where "bad news is good" because it may lead to more (sorry, moar) thin-air stimulus to goose asset prices even higher.

The result is a world addicted to debt and the phony stimulus now essential to sustaining it. In the process, a tremendous wealth gap has been created, one still expanding at an exponential rate.

History is very clear what happens with dangerous imbalances like this. They correct painfully. Through class warfare. Through currency crises. Through wealth destruction.

Is that really the path we want? Because we're for sure headed for it.

 

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Sat, 02/14/2015 - 22:12 | 5785817 CunnyFunt
CunnyFunt's picture

For those who can't decide whether or not to watch the video, don't bother.

It's an ad.

Sat, 02/14/2015 - 22:18 | 5785832 mvsjcl
mvsjcl's picture

Thanks, Funny.

Sun, 02/15/2015 - 00:24 | 5786067 TwoShortPlanks
TwoShortPlanks's picture

Sorry, shameless, off topic, repeated post

Hope everyone is well. TSP Update

I promised some people I’d give an update along the way. This relates back to a post on my Blog titled ‘Multiple Irons In Multiple Fires’; ie. what do you do once you have your PMs in place?

‘Profiteering From Diminishing Budgets’
http://twoshortplanksunplugged.blogspot.com.au/2015/02/profiteering-from-diminishing-budgets.html

Sun, 02/15/2015 - 03:48 | 5786295 Yes_Questions
Yes_Questions's picture

 

 

was wondering about you earlier today.

 

Sun, 02/15/2015 - 08:38 | 5786476 negative rates
negative rates's picture

This is definitly class warfare bitches, the problem kids have grown to become problem adults.

Sat, 02/14/2015 - 22:28 | 5785857 Yen Cross
Yen Cross's picture

 I'll watch any video you put forth Cunny. 

Sat, 02/14/2015 - 23:07 | 5785930 CunnyFunt
CunnyFunt's picture

The video might have been a hit in 2007, but it's long since become trite. I normally wouldn't comment on these type of articles, but I'm in a foul mood. I took my good lady to the range this afternoon on our Valentine's date, and some moron loaded an M1 Garand directly behind me with the muzzle pointing at my back. That sort of behavior seriously winds me up.
I hope you and yours are well, bro.

Sat, 02/14/2015 - 23:18 | 5785962 Yen Cross
Yen Cross's picture

No Biggie. It's the thought that counts.

 Blade Runners/

Sun, 02/15/2015 - 02:23 | 5786232 El Vaquero
El Vaquero's picture

While I've never had an M1 go off from letting the bolt slam forward, that's seriously not cool, M1 or not.  May the fucker get a bad case of M1 Thumb. 

Sun, 02/15/2015 - 09:19 | 5786519 spinone
spinone's picture

I'm with you Cunny.  Poor muzzle discipline makes me furious, expecially when directed at me.  Hope you had a serious discussion with the guy.

Sun, 02/15/2015 - 09:35 | 5786539 overmedicatedun...
overmedicatedundersexed's picture

OT or not..self mutilation: surgery to change sex,divate sexual lifestyles, piercings,face tattoos whole body tattoo's, are  symptoms of a people who are living in a lie ,in a controlled cage of psych war..as getto kids drop pants and spiked hair walks by you..remember they are showing the world we, that we are being mutilated by a prison of a society that is insane at the top, people know something fundamental is very wrong, but most are blinded with eyes wide shut. so we mutilate ourselves..take warning the increase of this self mutilation is a measure of how much society is corrupt  with insane policies..or not you be the judge.

Sun, 02/15/2015 - 09:47 | 5786560 new game
new game's picture

signs, signs,  everywhere, blocking the scenery, saying do this don't do that...

 

imagine that, me working for you...

Sun, 02/15/2015 - 12:57 | 5786953 KenShabby
KenShabby's picture

While I don't completely disagree with your general sentiment, body piercings, scarification and tatoos are "primitive" human constructs. 

Sun, 02/15/2015 - 05:16 | 5786351 supercelld
supercelld's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Sun, 02/15/2015 - 09:48 | 5786563 new game
new game's picture

try blowjobs, cash for cum.

Sat, 02/14/2015 - 22:19 | 5785834 Who was that ma...
Who was that masked man's picture

You were right but I watched it anyway.  I should have listened.

Sat, 02/14/2015 - 22:22 | 5785837 wendigo
wendigo's picture

OT: an observation I've made. EKM1 appears on the surface to be a troll, but I suspect there's much more to it than that. I believe his purpose is to make outlandish claims, and then be drowned out by a huge number of comments showing his claims to be bogus. In this way, he educates the unifiormed by forcing them to read the opinions of people who actually know what they're talking about. 

It's a subtle game to be sure, and not one I would wish to undertake. 

Sun, 02/15/2015 - 01:09 | 5786135 smlbizman
smlbizman's picture

i had to check how long he has been a member..to my best recollection there was a time i thought he made some sense. i dont know if this is a different ekm1 or what. but it felt like ekm was here longer than 32 weeks....now this guy , ekm1 is just off the charts...

Sun, 02/15/2015 - 03:56 | 5786299 Harbanger
Harbanger's picture

You should never be judgemental, dude.  That's right in the manifesto.  Hope to see you on the other side just to remind you again.

Sun, 02/15/2015 - 09:49 | 5786565 new game
new game's picture

i'm on the other side. welcome aboard!

Sat, 02/14/2015 - 22:22 | 5785839 A Lunatic
A Lunatic's picture

Now if only I knew three people I care about........

Sun, 02/15/2015 - 00:04 | 5786047 OldPhart
OldPhart's picture

Was pondering the same thing...then it hit me...wife, and two sons.

None of which will heed.

Sun, 02/15/2015 - 01:11 | 5786137 smlbizman
smlbizman's picture

i have 4, if i can count my dogs.....

Sun, 02/15/2015 - 03:39 | 5786289 Harbanger
Harbanger's picture

By the name of the three.  You can count your days.

Sat, 02/14/2015 - 22:22 | 5785841 WhackoWarner
WhackoWarner's picture

Peak Prosperity,  PHOENIX Capital and a few more are always a shill fr newletters.  Their insights are second hand and shallow.  They just want your cash

Sat, 02/14/2015 - 23:06 | 5785933 max2205
max2205's picture

Tyler is getting a nice fee for some of these contributors. ...Phoenix is always ignored by me.

 

Good for ZH.

Sun, 02/15/2015 - 09:21 | 5786522 spinone
spinone's picture

Peak Prosperity (Chris Martenson) was great in early on, then they monetized it.

Sat, 02/14/2015 - 22:26 | 5785851 fascismlover
fascismlover's picture

It will not be "dangerous" for the majority, in fact it is the only hope for the majority.  It might be a different story for the elites...no matter what bunker or island they flee to...their servants will always be with them..."protecting" them.

Sat, 02/14/2015 - 22:26 | 5785852 Alberich
Alberich's picture

We are currently observing an exceptional number of games of chicken where even the participants are unsure of the stakes and the timeline. Whoever can trade this extraordinary uncertainty will deserve the immense profits. I'm all in long silver. God help us all :)

Sat, 02/14/2015 - 22:38 | 5785876 cornfritter
cornfritter's picture

God has nothing to do we these markets friend.  Now god, well sure ...

Sun, 02/15/2015 - 04:08 | 5786305 Harbanger
Harbanger's picture

If there was a God, he would let people destroy themselves.

Sun, 02/15/2015 - 09:31 | 5786530 messystateofaffairs
messystateofaffairs's picture

free will allows you to do that, otherwise it would not be free will.

Sun, 02/15/2015 - 09:56 | 5786573 new game
new game's picture

and that free will allows you or i to believe or NOT.  thanks.

the ultimate opiate of control.

Sun, 02/15/2015 - 04:39 | 5786328 GuusjA
GuusjA's picture

Netwerk Carl0 heeft geen vertrouwen in dat de VredeVrijheidDirect-beweging er uit gaat komen: "In Nederland kan het vestigingsklimaat voor bedrijven gigantisch worden verhoogd door de invoering van het DAB-systeem. VNO-NCW chanteert de VVD om te waarheiddelen over ..."?!?!?

 

http://www.nrc.nl/nieuws/2015/02/14/vvd-jaagt-werknemers-de-loopgraven-i...

 

De ArbeidMachtFrej-beweging staat maandagochtend tegenover V&D in de rechtbank wegens het loonoffer van 6 procent dat het warenhuis vraagt van zijn werknemers. De V&D wil zodoende de psychosegelovige wetgeving met betrekking tot de werking van het systeem 'Liegen om te Leven' breken. Probleem is echter dat de Rechtelijke Macht door de @RaadvanState nog steeds niet is geïnformeerd hoe het om moet gaan met de 3e SpinozaGolf. 

 

http://www.trouw.nl/tr/nl/5116/Filosofie/article/detail/3851543/2015/02/...

 

Beroepsmilitair Mostafa Hilali heeft inmiddels de informatie gekregen dat de Vrijheid van meningsuiting valt onder het 'recht op vrijheid' van iedere (rechts)persoon om te speculeren wat hij wil.

 

http://www.volkskrant.nl/wetenschap/elk-brein-reageert-anders-op-verhale...

 

Neuropsychologen Roel Willems en Annabel Nijhof van de Radboud Universiteit beweren al wetenschappelijk te hebben aangetoond dat het 'recht op uniciteit' is gefundeerd op de waarheid dat ieder bewustzijn anders reAgeert op de liquidaties die her en der op de aardbol 'spontaan' aan het ontstaan zijn. 

 

http://www.volkskrant.nl/binnenland/liquidatiegolf-groeit-uit-tot-onover...

 

Bij iedere lezer draaien de hersenen op volle toeren om gebeurtenissen in de evoluerende werkelijkheid te toetsen aan zijn intuïtie. Daaruit ontstaat weer spontaan activiteiten die toe kunnen worden beschreven aan de natuurwet dat iedere interactie tussen geweten en karma per definitie gelijk is aan de '1'. 

 

De waarheid verkrachten is in het systeem 'Liegen om te Leven' aan de orde van de dag om geld te 'verdienen'. Voor netwerk @GuusjA is het uitrollen van de wiskundige definitie van de absolute waarheid het pad naar een hogere beschavingsvorm. Wie moslims vraagt om afstand te doen van de absolute waarheid creëert haat. Sterker nog degenen die niet op de hoogte zijn van het bestaan van een absolute waarheid wordt door netwerk @GuusjA gezien als een dwalende. 

 

http://www.telegraaf.nl/buitenland/23686711/__Enorme_inbraak_computers_b...

 

@Secret_SiT is al sinds 2013 op de hoogte dat een automaat in Kiev „spontaan” geld uit kan spuwen. In feite kan er dus per direct een basisinkomen worden ingevoerd in de Oekraïne. Dit is namelijk veel slimmer dan waar netwerk Juncker nu op aanstuurt. Dit wordt echter nog niet door The New York Times gepubliceerd, maar krijgen we een verhaaltje dat 'hackers aan de haal gingen met bijna 265 miljoen euro'?!?!?

Sun, 02/15/2015 - 08:01 | 5786449 Clarabell
Clarabell's picture

The little Dutch boy should take his finger out of his ass and stick in the dike.

Sat, 02/14/2015 - 22:37 | 5785873 Hohum
Hohum's picture

Is it an imbalance when Apple's market cap (about 700B) is equal to five months of world oil consumption?  Apple must really be the bee's knees.

Sat, 02/14/2015 - 22:47 | 5785885 Yen Cross
Yen Cross's picture

I smell a massive long squeeze in the markets.

  Gold goes higher, and gas prices level out/

 China is caving in> 253% debt~GDP

 The BRICS are going to destroy $usd in May, with a new SWIFT alternative.

 I'll give my advice to Knuckles. 

 

Sat, 02/14/2015 - 22:49 | 5785892 Gab Timov
Gab Timov's picture

value of gold non-manipulable? bah.

i keep seeing that idea, here and there.

 

Sat, 02/14/2015 - 23:08 | 5785936 Yen Cross
Yen Cross's picture

 I guarantee Knukles is buying the " short end" of the curve! BITCHEZ

Sun, 02/15/2015 - 00:02 | 5786038 willwork4food
willwork4food's picture

What is the short end of the curve Yen?

Sun, 02/15/2015 - 00:06 | 5786050 OldPhart
OldPhart's picture

It's similar to the clean part of a turd.

Sat, 02/14/2015 - 23:34 | 5785982 Monetas
Monetas's picture

"Wealth Gap" .... I've never heard it called that before .... what was wrong with pussy ?

Sun, 02/15/2015 - 05:54 | 5786383 Batman11
Batman11's picture

Louis the XVI and the French aristocracy found out the problem with high inequality.

Sun, 02/15/2015 - 06:05 | 5786391 Batman11
Batman11's picture

When you have a ten times global GDP derivatives market stacked on top of the real economy thing have got to be top heavy.

Top heavy always means instability.

This is probably why we are seeing small problems, resulting in big problems as the top heavy financial system sways on small movements below, amplifying these small shifts into something much larger.

 

We have already seen the results of the construction of a financial house of cards on top of the shaky foundations of sub-prime.

When the foundation are poor the structure above is guaranteed to fail.

A small section of the US housing market (sub-prime) collapsed which should have just caused a problem in the US.

The financial house of cards and complex financial instruments, exported this problem around the world and nearly bought down the Western financial system.

What other shaky foundation have the investment bankers been building on? 

 

Sun, 02/15/2015 - 06:27 | 5786402 Batman11
Batman11's picture

Banking is just taking money from the future to spend today.

The loan can be spent today, the repayments occur in the future.

With a world drowning in debt, the future is here.

 

Sun, 02/15/2015 - 07:18 | 5786414 Batman11
Batman11's picture

Banking is just taking money from the future to spend today.

The loan can be spent today, the repayments occur in the future.

With a world drowning in debt, the future is here.

 

Add to this the trickle up effect:

a) Those with excess capital invest it and collect interest and rent.

b) Those with no capital borrow money and pay interest and rent.

 

Those with the debt, are those with no capital and least able to afford it.

Sovereign states, like Greece, have to keep borrowing just to pay the interest.

Those with capital, the rich, see their coffers fill with ever more interest and rent.

 

Inequality is rising because the financial system is designed that way.

Sun, 02/15/2015 - 07:18 | 5786423 Batman11
Batman11's picture

The bank bailouts protected the assets of the rich (the majority were protected with deposit insurance).

These bailouts passed further debt to Sovereign States, who are in debt anyway, and left them paying more interest, which they then have to pass onto their nations tax payers.

These bailouts have increased the trickle up effect.

Sun, 02/15/2015 - 12:24 | 5786868 GeorgeHayduke
GeorgeHayduke's picture

"These bailouts have increased the trickle up effect."

It's always been a trickle up economy in 'Murca. The bailouts turned the trickle into a flow. That has been the purpose of all laws and legislation enacted in this country since at least Reagan. It was much like that before Reagan, however, he was the maestro who institutionalized upward wealth movement and had most of the serfs enthusiastically support it.

Sun, 02/15/2015 - 07:41 | 5786440 Batman11
Batman11's picture

Here are the Rothschild’s to explain:

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.

Sun, 02/15/2015 - 10:37 | 5786622 bshirley1968
bshirley1968's picture

The revealing thing about that quote is the date.  Lincoln's war made the events of today possible.

Sun, 02/15/2015 - 13:41 | 5787121 Jack Burton
Jack Burton's picture

"mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint"

This is a fact which underpins everything we witness today on the "Main Street" level of the social and economic world we live in. Those who are being driven into the dirt are the least aware and least willing to even know that it is happening. Lambs to the slaughter!

Sun, 02/15/2015 - 13:50 | 5787138 RaceToTheBottom
RaceToTheBottom's picture

Ability to purchase gold/silver via bitcoin leverages the bitcoin as a transaction, not store of value, device.

http://www.coindesk.com/bitcoin-atm-selling-gold-silver-goes-live-singap...

Sun, 02/15/2015 - 08:28 | 5786463 Batman11
Batman11's picture

The two branches of banking carry out this service of loading the future up with debt so money can be spent today.

Retail banking – This creates money out of nothing to loan today with the repayments coming in the future, eg: mortgages, car and other loans. Their fee for this service is interest.

Investment banking – Connects those with capital to those who need it. Those who need capital, spend the money now and pay interest to those who have it in the future. Their fee is a cut of the interest.

Sun, 02/15/2015 - 07:03 | 5786417 q99x2
q99x2's picture

From the perspective of Q99x2, the near term future for the human species is bleak. As the NWO world take over continues FRAUD will become ineffective as all major nations resort to it to fight back against the NWO. The loss of the ability to manipulate reality through FRAUD will quickly produce dangerous situations as the affects of reality are scapegoated. The cooling of the earth will continue due to the solar shutdown. volcanic activity will make things even colder and the contraction of the earth's surface will unleash devastating earthquakes that will in turn create nuclear disasters. During the 17th century, at the time of the Maunder Minimum there were more wars and famines than at any other time in recorded history. 1/3 of the human population perished. The cold will not go away for another 30 to 80 years. The generation of the Q99X2, the generation of the singularity shall include the most violent birth pangs the world has ever known. Although once complete an entirely new reality will quickly follow.

Sun, 02/15/2015 - 08:15 | 5786458 fxpmtrader
fxpmtrader's picture

The past - as well as the future - of the human species - has not changed since Stonage.

There is no hope and no new realitiy will follow anytime soon.

But i agree that it can get much much worse.

As long as this useless, dumb, ignorant, short memoried for ever selfish creature/cancer exits on this wonderful planet.

Sun, 02/15/2015 - 09:04 | 5786501 Bumbu Sauce
Bumbu Sauce's picture

Heal the planet now by removing yourself from it.

Sun, 02/15/2015 - 10:23 | 5786608 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Yes, there will be a new reality. Trust me, you will have no place in it even as a slave.

One more time---the Singularity will make the labour of all but a few human beings obsolete. Our masters' first orders to our robotic replacements will be to exterminate us, as we have become in their estimation only so many useless mouths. 

And that's the happy ending, where our "children" get to settle the galaxy in our place. The other one is where the banksters start a nuclear war with Russia rather than let the meek inherit the earth while there's anything left on it to inherit, and the new 0.1 percent are those who manage to survive the collapse of industrial and agricultural civilization.

Humanity lived through climate change. It won't as easily survive nuclear war or the Singularity.

Sun, 02/15/2015 - 07:58 | 5786447 fxpmtrader
fxpmtrader's picture

Imbalances are there since Stonage.

So are the ignorant, short memoried, for ever dumb and useless humans.

Sun, 02/15/2015 - 09:09 | 5786507 shovelhead
shovelhead's picture

Speak for yourself.

I can make Giant Triple-Sec butter glazed orange muffins that will make your head explode because they're so good.

I make the world a better place to live.

Sun, 02/15/2015 - 09:10 | 5786508 shovelhead
shovelhead's picture

And don't forget it.

Sun, 02/15/2015 - 10:23 | 5786607 bshirley1968
bshirley1968's picture

The problem is not that there are rich and poor people.  The problem is the game has been rigged and the referees have been bought.

Sun, 02/15/2015 - 11:43 | 5786758 tuttisaluti
tuttisaluti's picture

its all about russian ressources. the greed of the usa is enormous.

Mon, 02/16/2015 - 02:23 | 5789136 spreadtheword
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