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"We're All Frogs In Boiling Water" Santelli Says After Lacy Hunt Warns "This Is Far From Over"

Tyler Durden's picture




 

Global debt has expanded by $35 trillion since the credit crisis and as Lacy Hunt exclaims, "that's a net negative, debt is an increase in current consumption in exchange for a decline in future spending and we are not going to solve this problem by taking on more and more debt." Santelli notes that debt will actually keep growth "squashed down" and points out the low rates in Europe questioning the ability of The ECB's actions to save the economy which Hunt confirms as "longer-term rates are excellent economic indicators" and that is not a good sign for Europe.   

 

"This process is far from over," Hunt concludes, "rates will move irregularly lower and will remain depressed for several years."

Santelli sums up perfectly, "we're all frogs in boiling water," as we await the consequences of central planning.

 

 

Full Hoisington note below:

Hoisington Q1 2015

 

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Fri, 04/17/2015 - 12:39 | 6003326 Hohum
Hohum's picture

What you talking about, Lacy?  Debt's been growing by leaps and bounds since 1971 or so.

Fri, 04/17/2015 - 12:44 | 6003343 Dubaibanker
Dubaibanker's picture

I am pretty sure Santelli read my frog analogy early morning and used it on TV....

http://www.zerohedge.com/news/2015-04-16/hong-kong-insanity-launches-exc...

Fri, 04/17/2015 - 12:46 | 6003353 Soul Glow
Soul Glow's picture

Santelli is as close to being Tyler Durden in the MSM as it gets.

Fri, 04/17/2015 - 12:50 | 6003368 BaBaBouy
BaBaBouy's picture

"We're All Frogs In Boiling Water"

The "TALKING HEADS" All Have A Differing Way Of Saying The Same Fecking Thing: "Protect Yourselves Bitchez, BUY GOLD Asap" ...

Fri, 04/17/2015 - 13:10 | 6003421 Pladizow
Pladizow's picture

OK, now give us something actionable - when do we short the Bund and other Euro debt?

Fri, 04/17/2015 - 13:42 | 6003543 metastar
metastar's picture

We are more like frogs in a pressure cooker. And, anyone in Boston can tell you what happens to pressure cookers.

There's going to be frog parts everywhere!

Fri, 04/17/2015 - 16:14 | 6004193 Manthong
Manthong's picture

Frogs are way too smart to allow themselves to be slowly boiled.

Only misled and clueless human lemmings allow themselves to be slowly simmered in the shit-stew of statist central banking.

Fri, 04/17/2015 - 15:18 | 6003970 Dubaibanker
Dubaibanker's picture

Fuck the frogs!

India has become the first country in the history of the world to ask every resident Indian for their foreign as well as domestic bank account information and all foreign travel with source of funds, passport number and ID card number on their annual income tax returns.

All this is effective Apr 1, 2014 i.e. retrospectively, so not much can be done for whomsoever held an overseas bank a/c previously. Even information on closed accounts has been asked for after Apr 2014. It will not affect the Non-Resident Indians, as per information provided.

All resident Indians are covered and there we have big brother snooping and eventually arresting you as well confiscating your illegally stashed money! 

foreign india bank accounts tax returns 

There are much more tighter rules on illegal (black) money yet to come this year....so stay tuned...for this developing havoc all across India tomorrow morning onwards being a much more radical move than in the US.

Democracy, anyone?

 

Fri, 04/17/2015 - 15:35 | 6004034 RaceToTheBottom
RaceToTheBottom's picture

india is undertaking the roll of lead country for managing gold....  other countries are watching.

Fri, 04/17/2015 - 16:12 | 6004189 Manthong
Manthong's picture

Frogs are way too smart to allow themselves to be slowly boiled.

Only misled and clueless human lemmings allow themselves to be slowly simmered in the shit-stew of statist central banking.

Sat, 04/18/2015 - 09:59 | 6006030 The Wizard
The Wizard's picture

Has anyone ever been able to find the defintion of the term "income" in the Internal Revenue Code? Just think about it. The very thought of filling out a form revealing all assets to the government every year is an insult to one's intelligence in a so called liberty and freedom loving country.

Fri, 04/17/2015 - 12:54 | 6003378 kaiserhoff
kaiserhoff's picture

Frogs in boiling water would be dead.  This seems to be a perversion of an urban legend, that you can boil a live frog by turning the temperature up 2 degrees at a time, and he won't notice.  NOT TRUE.  Any frog will jump out of the pan, as soon as the water becomes uncomfortable.

Proving yet again that humans are more adaptable, but less intelligent on average, than frogs.

Fri, 04/17/2015 - 12:58 | 6003387 Beam Me Up Scotty
Beam Me Up Scotty's picture

"What you talking about, Lacy?  Debt's been growing by leaps and bounds since 1971 or so"

You mean the fact that Obama has increased the debt more (MOAR) than all the rest of the presidents before him, COMBINED??  One giant leap??

Fri, 04/17/2015 - 13:01 | 6003403 Hohum
Hohum's picture

Scotty,

Such is the nature of exponential growth.  You forgot to talk about private debt--common mistake.  Economists don't either.

Fri, 04/17/2015 - 13:17 | 6003454 El Vaquero
El Vaquero's picture

Yup.  Total debt in the US has only declined once since the late 60s, and the data that I was looking at didn't go back further than that.  That once resulted in TARP, the AIG bailout, QEs 1, 2 and 3, Operation Twist, etc...  It almost brought the financial system down.

 

As for public debt, if you go back and start tallying, it has doubled, on average, about every 8 years.  Under Reagan, it went up 284%!  As much as I dislike Clinton, it was closer to 150%, though I don't have the exact number off the top of my head.  It wasn't Clinton's doing though, and it should be stated that I very much doubt the US government was using GAAP accounting even back then.  It was simply that the economy was booming back then, and the money velocity was high enough to pay for a lot of things without tons of debt.  Basically, chances are that any 2 term president will take on more debt or close to more debt than all other presidents combined.  As you say, Hohum, exponential growth.  It is built into the monetary system, and that doubling is going to happen regardless of the president - even if parties did make a difference, which it does not. 

 

It's why talk of balancing the budget is nothing more than kabuki theater.  If the government were to balance the budget, it would collapse in the blink of an eye, along with the dollar.  That interest must be paid, or else!

Fri, 04/17/2015 - 13:48 | 6003571 Oldwood
Oldwood's picture

Are you saying that debt is a necessity, or that the expense of paying off the debt would bankrupt the world?

Fri, 04/17/2015 - 13:58 | 6003621 Beam Me Up Scotty
Beam Me Up Scotty's picture

Wasn't it during Clintons term that they stuffed the SS trust fund full of IOU's and used that money to make it look like we were in surplus?  Or did that happen before him during Bush 41?  At any rate, this is the bank giving you a mortgage on a mansion you can't afford to pay, then loaning you money to make the payments on the mortgage.   Maybe the government should issue million year bonds and send all of the debt into the future when no one is around anymore.  Wait, that might be the 10 year, or even the 5 year bond. 

Fri, 04/17/2015 - 14:24 | 6003774 El Vaquero
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I think that LBJ was the one that started raiding the SS trust.  I'd be surprised if it hasn't been raided by every congress/president since.

Fri, 04/17/2015 - 15:30 | 6004010 Beam Me Up Scotty
Beam Me Up Scotty's picture

Nothing left to raid.  Its nothing more than filing cabinets stuffed full of IOU's!!  LOL!!  Everyone's SSI is really nothing more than another tax contributed to the general fund.  And yet people still believe in the shittiest system on the planet.  I can't believe there isn't full on political rebellion by anyone who is younger than about age 50 right now.

Fri, 04/17/2015 - 15:47 | 6004081 El Vaquero
El Vaquero's picture

Normalcy bias + panem et circenses.  Most people have food and a roof over their heads plus NFL, fantasy football, dancing with the stars, and other dumbass shows like mountian monsters where a bunch of hillbillies run around trying to catch a 'sheepsquatch."  (I shit you not!)  We're told that SS will be solvent until 20XX way in the future, so people think that it's not their problem.  I think that most people, even a lot of the dumber ones, know in the back of their minds that something isn't right, but they don't want to believe it and won't until they have no choice.  Afterall, why go out and risk a bullet in your ass when you have shelter, food and mind numbing entertainment?  Nothing is going to happen until at least one of those conditions changes, and when it does, liberty minded people are going to have to keep the sociopaths and control freaks from taking charge. 

Fri, 04/17/2015 - 15:52 | 6004107 Fun Facts
Fun Facts's picture

This financial system [ponzi scheme] has been entirely broken since 2008 due to a debt we call money that is too large to ever be repaid.

Since 2008, under various euphemisms, they have been monetizing the debt, and if they stop [collectively speaking for western CB's], the system will fail [ponzi scheme will end].

They know it, everyone with a few active synapses knows it, and it's all held together now only with CB open market operations and statistical fraud.

Fri, 04/17/2015 - 16:15 | 6004208 El Vaquero
El Vaquero's picture

Volatility is coming back, which is a sign of where the Fed's hand isn't.  I think that they're losing control or are going to lose control relatively soon.  The excess reserves held at the Fed keep on going down, then they go back up.  With QE3 ended, they should be going down and not back up.  I don't think that this is POMO in the traditional sense, but I think there is some form of open market operation.  Where are the FRNs that leave going and where are the FRNs that come back coming from?  That is the $300 billion question.  And lets not forget Belgium acting as a straw purchaser for USTs.  For who, though?  I suspect the Fed, though I cannot prove it.  Even worse, it could be something like the IMF. 

 

Either way, I think that POMO was well past the point of diminishing returns.  If they really want to get rid of all of this odious debt, they're going to have to do a helicopter drop, no, make that a B52 drop to the populace.  But we all know where that leads. 

Fri, 04/17/2015 - 17:30 | 6004486 roadhazard
roadhazard's picture

The FED is into the SS fund for $2.5 TRILLION. Yes, SS could have funded itself if it had not all been stolen.

Sat, 04/18/2015 - 00:57 | 6005651 JoWazzoo
JoWazzoo's picture

The concept of raiding SS is not well understood.  What they did was pass a bill that credited the excess flows into SS over payouts onto the budget.  Thus making the deficit look better.

 

Assume SS payments = 100 and payments into the "SS trust fund" = 200.  Net of + 100.

Fed revenue = 1,000 and spending = 1,100.  Deficit = 100.

By rolling the SS excess into the budget ... voila - deficit becomes Zero.

Of course in coming years (20 or so) the net flow from the SS Trust fund will become negative.  Pay = 200 and payments of 100.  Don't be surprised if Congress votes to remove SS "excess" from the budget as it will be a negative, not a positive.

Fri, 04/17/2015 - 14:10 | 6003693 El Vaquero
El Vaquero's picture

I'm saying that because debt is the mechanism through which more currency is created and because the amount of debt out there is so much greater than what we produce every year, reducing the debt load would reduce the amount of currency to the point that the debt that is left could not be repaid.  A lot of TBTF institutions would fail, and people would probably lose faith in the currency, i.e. hyperinflation would be the end result of the Fed and the government trying to stop it.  If you look at our trade deficit, and realize that it is dependent on the USD's status as the global reserve currency, you have to realize that all or most of our imports would go away.  This includes imported oil to a large degree.  Ironically, a debt crisis may very well start with in the energy of the economy.  Last I saw, there were $550 billion in junk bonds tied to the energy sector.  If something tanks the price of oil, a lot of that is not getting repaid, and if it is a big enough event, it will lead to a contagion in the bond markets.  Either way, with the fed's bubble blowing policies, we've been getting a financial crisis about every 7-8 years.  We're about due for one now. 

 

The good news is that the USD is a pillar of the US government's and the TBTF banks' power, and if the dollar goes away, so does a lot of their BS.  The bad news is that we'll have to adjust to a lower standard of living, and I doubt that adjustment will be peaceful or smooth.  Not to mention that the US government and TBTF will do a lot of damage trying to keep an unsustainable status quo sustained.

Fri, 04/17/2015 - 15:07 | 6003948 msmith9962
msmith9962's picture

Thank you for your concise analysis!  Much appreciated.

Fri, 04/17/2015 - 16:45 | 6004308 Usurious
Usurious's picture

El Vaquero's comments  are as close to trav7777 as you can get.......

Fri, 04/17/2015 - 16:56 | 6004346 El Vaquero
El Vaquero's picture

I'm not trav7777.  Did he get the banhammer, or did he just quit coming around?

Fri, 04/17/2015 - 17:12 | 6004415 Usurious
Usurious's picture

he was banned......its too bad, he was one smart dude.....he got a little crazy toward the end of his time here...

I enjoy your comments as much as i did reading trav7777, and as you might know, I quote trav and mako quite often.....

 

Fri, 04/17/2015 - 17:29 | 6004479 El Vaquero
El Vaquero's picture

Yeah, watching the bullshit without blinders on makes you want to go crazy.  The good news is that I think we're a lot closer to the end than the beginning.  The bad news is that the transition period is going to suck.  I'm just waiting for the "We don't believe that the problems in the energy related high yield credit markets are going to spread."  High yield credit, subprime, what's the difference, right?  Or, hell, it might pop up somewhere else too. 

Fri, 04/17/2015 - 15:41 | 6004058 RaceToTheBottom
RaceToTheBottom's picture

Country debt is a way to have less taxes than required to balance budget.

Fri, 04/17/2015 - 15:30 | 6004018 Meremortal
Meremortal's picture

Instead of looking at who was President when deficits (not debt) went down, you should look at which party contolled congress, since B.O. (Before Obama) congress generated the budget every year as ordered under the Constitution.

When it comes to budgets, the President proposes, the Congress disposes. That's why we don't see budgets anymore, we see continuing resolutions.

 

 

Fri, 04/17/2015 - 15:52 | 6004102 El Vaquero
El Vaquero's picture

Congress, party or president does not matter much.  This ship is steering itself.  Full speed ahead and damn the iceburgs!

 

https://www.youtube.com/watch?v=07P0mXOjKBk

Fri, 04/17/2015 - 16:48 | 6004320 Usurious
Usurious's picture

in a debt-money system, growth of the debt is required, not optional........if the public does not borrow, the govt will borrow on their behalf........

Fri, 04/17/2015 - 16:59 | 6004362 El Vaquero
El Vaquero's picture

http://research.stlouisfed.org/fred2/graph/?id=TCMDO,

 

And when that fails, we get AIG bailouts, TARP, QE1, QE2, Operation Twist, QE3 and probably a bunch of other bullshit that was kept from the public. 

Fri, 04/17/2015 - 13:25 | 6003475 Vullsain
Vullsain's picture

Fuck Obama and the democrats they were a part of it. But I am tired of the GOP Ditto Heads playing Stupid and Righteous and pretending  that Obama did not inherit an absolute clusterfuck from the era of Dubya,  who spent like a drunken democrat ,  financial and housing collapse, TARP, two wars, kicking the medicare insolvency down the road with a trillion dollar unfunded medicare modernization act, and "Dick Deficits Don't Matter Cheney" and Reagan Stlyle Borrow and Spend GOP Voodoo Economics. They suck bankster cock as good or better than the democrats.

 

Fri, 04/17/2015 - 13:31 | 6003496 Glasater55
Glasater55's picture

Obummer took 780 billion out of the Medicare trust fund to implement 0-care.

Fri, 04/17/2015 - 15:25 | 6003657 Vullsain
Vullsain's picture

Health Care reform/economics/sustainability is incredibly complex and difficult when you get beyond the mantras and memes that replace policy discussion. maybe it has to be that way. i was at one time reasonably informed, I have not kept up like i should. But I do know if you start to look at Obamacare's components you can see the DNA of policy being discussed and planned from non partisan experts from 30 years ago. As messy as Obamacare is, doing nothing is  unsustainable, the rate of healthcare inflation along with 45 million uninsured eventually had to be addressed. It is also a subject that my libertarian leanings does not mesh very well with. We were incapable as a society of dealing with it 40 years ago when we should have, and when any basic analysis of demographics and healthcare inflation/technology predicted where we are at. 

Fri, 04/17/2015 - 15:25 | 6004002 Not My Real Name
Not My Real Name's picture

"As messy as Obamacare is, doing nothing is  unsustainable, the rate of healthcare inflation along with 45 million uninsured eventually had to be addressed."

So doing something that makes things worse is better than doing nothing? Fuck Obamacare.

 

Fri, 04/17/2015 - 15:58 | 6004134 Vullsain
Vullsain's picture

Just keep sticking your head in the sand. Better yet actually try to to read a little bit instead of regurgitating the puke you hear on FOX.

Although I never said I support Obamacare, having a conversation about healthcare economics and policy is like pissing in the wind with your mouth open,

Like I mentioned I do not keep up. It is still irritating ar times to read over and over clueless simpleton mantras.

 

Fri, 04/17/2015 - 16:16 | 6004216 Overfed
Overfed's picture

HMOs, medical "insurance", Medicare, and Medicaide are the reasons why healthcare costs have skyrocketed over the last 50 years or so. Along with other forms of .gov interference.

Fri, 04/17/2015 - 16:29 | 6004260 Vullsain
Vullsain's picture

You left out point blank obvious ageing demographics, health care is very labor intensive,advanced healthcare technology actually becomes even  more labor intensive instead of less so as in other industries. One simple example, the technologist performing the MRI scan is very specialized,it goes on and on Robotics and automation is not a great fit in healthcare as it is in other industries.. we have left out pharmaceuticals, your eyes would pop out if were to read how much of the healthcare dollar would go to drugs if there is not some rationing.

Fri, 04/17/2015 - 16:35 | 6004277 Vullsain
Vullsain's picture

"HMOs, medical "insurance", Medicare, and Medicaide are the reasons why healthcare costs have skyrocketed over the last 50 years or so. Along with other forms of .gov interference."

Actually I agree, maybe if we had tackled the problem 40-50 years ago we could have come up with something better. But that is dreaming of some libertarian utopia.

Fri, 04/17/2015 - 16:34 | 6004275 Calmyourself
Calmyourself's picture

Stop the illegal pricing schemes that all of Healthcare is allowed to partake of protected of course by big brother..

Fri, 04/17/2015 - 15:45 | 6004069 RaceToTheBottom
RaceToTheBottom's picture

Three players makes it lots harder. Single payer would have removed the need to make billionaires out of healthcare insurance banksters...

Fri, 04/17/2015 - 16:15 | 6004143 Vullsain
Vullsain's picture

Exactly but the ditto heads would have been screaming socialism like hysterical little bitchez even though the system before Obama was essentially socialized and heading more so every year.

Fri, 04/17/2015 - 16:12 | 6004176 Vullsain
Vullsain's picture

This is actually what the GOP big shots wanted, they wanted to have access to the insurers jizm in their mouths, and get to blame the democrats to boot, another cynical win win for the elephant faction of the One-Party

BTW to counter the tone of my foul mood today At least there are few if any dipshit liberals around here on ZH. I am thankful for that. Most but not all FOX news fanboys you can at least have a semblance of a rational discussion with (not always)

Fri, 04/17/2015 - 13:33 | 6003507 El Vaquero
El Vaquero's picture

See my previous post.  At nearly $58 trillion in total debt in a country with a $17.7 trillion GDP with a fiat debt-is-money system, it doesn't take a rocket scientist to see that, if the debt starts to decrease, they will do everything they can to stop it, because that is more in the way of defaults than the USD can handle.  It would crush the dollar and goods would quit flowing to the US.  The ability to pay interest on all of that debt is going to go away, and the USD will get crushed one way or another.  We're in between a rock and a hard place with interest rates because of this.  People relying on a fixed income are getting screwed by ZIRP as is productive investment, but truly raising rates would bring the day of recokoning that much closer.  This is a no-win situation. 

Fri, 04/17/2015 - 13:45 | 6003556 USisCorrupt
USisCorrupt's picture

Vullsain you need to realize that there is ONLY a ONE PARTY system in this Country. There is NO Difference between Dem's & Rep's.

 

And for ALL those Yahoo's who think the handouts should STOP? Think about it when your loved one is Raped and Robbed. Or would you rather see MORE $$'s go to the WARS until the system implodes?

 

Why are so many so clueless?

Fri, 04/17/2015 - 13:51 | 6003585 Oldwood
Oldwood's picture

I'll take my chances with "raped and robbed", thank you.

Fri, 04/17/2015 - 14:46 | 6003879 Vullsain
Vullsain's picture

oldwood, I would never have thought you liked like that

Fri, 04/17/2015 - 14:10 | 6003684 Vullsain
Vullsain's picture

Agreed without any doubt..The identity politics from the two clubs of the One-Party drives me nuts sometimes.

Fri, 04/17/2015 - 14:13 | 6003708 El Vaquero
El Vaquero's picture

I prefer to view them as competing crime families.  Either one is happy to break your knees if you don't pay the protection racket fees, but they do like beating each other, even though they do roughly the same exact things.  They'll differ according to which oligarch is funding their campaigns, but that's about it.

Fri, 04/17/2015 - 14:17 | 6003735 Vullsain
Vullsain's picture

El Vaquero

"I prefer to view them as competing crime families." 

Great Analogy, 

Fri, 04/17/2015 - 14:42 | 6003862 El Vaquero
El Vaquero's picture

I think it is more apt than them being two sides of the same coin.  If one congress critter is more heavily backed by the oil and gas industry than another, and that other is more heavily backed by the banks, there will be squabbles if the banks and the oil and gas industry have differing and mutually exclusive needs or desires.  You can satisfy most of the oligarchs most of the time, but you cannot satisfy alll of them all of the time.

Fri, 04/17/2015 - 15:00 | 6003929 Clowns on Acid
Clowns on Acid's picture

Gov't debt begats private debt. Gov't debt leads to inflation which private citizens then have to borrow moar to keep up with the Joneses'.  Real estate for example (see Fannie Freddie Mae). College tuitions, etc...

It is not a common mistake... it is assumed within the conversAtio reading Gov't debt.  

 

Fri, 04/17/2015 - 20:07 | 6005018 eyetaliano
eyetaliano's picture

Just place a cover on the pot, preferably glass.

Fri, 04/17/2015 - 14:10 | 6003692 lester1
lester1's picture

PETER SCHIFF WAS RIGHT AGAIN !!

Fri, 04/17/2015 - 12:46 | 6003355 PartysOver
PartysOver's picture

I miss Santelli.  But I can't force myself to watch cnbc's propoganda orgy fest.

Fri, 04/17/2015 - 13:32 | 6003500 Cruel Aid
Cruel Aid's picture

rebel yell santelli started the idea of the tea party. he da man!

Fri, 04/17/2015 - 14:24 | 6003775 Vullsain
Vullsain's picture

I have thought the exact same thing. I do not have enough puke bags to get me past the other idiots.

Fri, 04/17/2015 - 15:16 | 6003974 stocktivity
stocktivity's picture

You don't have to miss him.

Just go to   http://www.cnbc.com/

click on "latest video"  (near top of page)

scroll down til you get to a "Santelli" video

Fri, 04/17/2015 - 17:41 | 6004524 Vullsain
Vullsain's picture

Stocktivity,

Thanks, got it bookmarked.

Fri, 04/17/2015 - 22:04 | 6005340 80 years are up
80 years are up's picture

No, he got it from me.  Ive been saying it for years when refering to young people who have no idea what a decent free economy is supposed to look like.

Fri, 04/17/2015 - 13:22 | 6003470 sgt_doom
sgt_doom's picture

Santelli?  Was he the clown credited with starting the Tea Party movement, financed by douchetards named the Koch brothers, and a bit more secretly by Peter G. Peterson?

What pure bullcrapola!

The Lords of Debt, the private equity/leveraged buyout queens (Blackstone Group, Carlyle Group, KKR, Bain, et al.) and the hedge funds and senior banksters, create all this debt, sell it off to build their fortunes, then claim the problem is too much debt --- which these cretins created to become ultra-rich!

What bullcrap!

Please, will all the klepto-psychos kindly STFU!!!!!!!!!!!!!

Fri, 04/17/2015 - 13:35 | 6003511 Cruel Aid
Cruel Aid's picture

Didnt see your post. the only thing i dont get is how he is still allowed to live on an nbc station.

Now that is suspect. He started it regardless of his position.

Fri, 04/17/2015 - 16:09 | 6004173 Squid Viscous
Squid Viscous's picture

Lacy...she was really hot in Caddyshack as I recall

Fri, 04/17/2015 - 22:45 | 6005419 chilli sauce
chilli sauce's picture

I think, I can never earn over which I paid by my precedent employer, but I was wrong, world is so large to try their fate.but now I am making $92/hr even more, can easily minimum $1700/week, on the experience everyone must try to do work online, easy way to earn, here's an example what I do... www.globe-report.com

Fri, 04/17/2015 - 12:40 | 6003327 buzzsaw99
buzzsaw99's picture

several years? several decades seems more likely.

Fri, 04/17/2015 - 12:45 | 6003349 KnuckleDragger-X
KnuckleDragger-X's picture

It kind of depends on how long it will take for a large portion of the world's population to die off and the hyena's to finish picking over the bones.....

Fri, 04/17/2015 - 12:49 | 6003363 buzzsaw99
buzzsaw99's picture

those bones will have their mortgages marked "performing" on the tbtf asset books

Fri, 04/17/2015 - 12:58 | 6003393 t0mmyBerg
t0mmyBerg's picture

probably not more than a few years.  oshithead has the spooks and military types out preparing to herd us all where they will now

Fri, 04/17/2015 - 13:44 | 6003555 Renewable Life
Renewable Life's picture

Herd us where???

The American Miltary couldn't herd 30 million Iraqis or 10 million Afghanis anywhere in the middle of the fucking desert, with a million men, 10 billion dollars, and utter hatred for the subjects!!!!?????

You think they are going to herd 330 million of their family members, friends and neighbors somewhere??

Mythology dude, now that's not saying they may not try, but get real about what the consequence of that shit would be!

Fri, 04/17/2015 - 13:53 | 6003596 KnuckleDragger-X
KnuckleDragger-X's picture

Yep, our present military isn't big enough to occupy even a single middle sized state and I think they won't even be able to deal with the riots in the cities when the bread and circuses stop.....

Fri, 04/17/2015 - 14:31 | 6003806 Almost Solvent
Almost Solvent's picture

Wiki (I know) says there are about 1.1M police/peace officers in the U.S.

Compared to 330M residents?

Those odds are not great of them keeping control in a SHTF scenario.

Fri, 04/17/2015 - 14:36 | 6003830 KnuckleDragger-X
KnuckleDragger-X's picture

It's worse than you think, combat infantry is pretty specialized and requires regular training to maintain capability. Police, even (or especially) SWAT aren't trained for it and urban combat is the worst....

Fri, 04/17/2015 - 17:23 | 6004455 El Vaquero
El Vaquero's picture

I watched the swat guys roll down Central Ave on their Bearcats last year.  22-24 of them per vehicle, and half of them were hanging on the outside of it.  If SHTF, they'd find that those Bearcats can only carry half that number as the ones on the outside would not benefit from the armor and bullet proof glass.  And just knowing how government works, there's a pretty good chance that they'd have to figure this out the hard way.  They're set up for dealing with riots at the worst, not an outright armed insurgency.  I think the local LEOs, including the surrounding cities that are part of the greater Abq area have a total of 3 or 4 of these things.  There is an MRAP parked out in front of the FBI building at the Big I (I-25 & I-40,) and I'm sure that there are a couple more like that held by other federal agencies.  All in all, that would not be enough to control Abq and the surrounding area if real civil unrest were to rear its head, which is somewhere around 900k people now.  At the protests over James Boyd, they had just about every officer from APD, BCSO, State Police (the ones stationed in the area) and Rio Rancho Police out there, and that was just rowdy, or as I like to call it, an almost riot.  If they had come in with half the number of police, I think it would have gone from rowdy to riot. 

 

So, what is going to happen if food doubles or triples in price and people start getting pissy and take to the streets?  Because that would be a lot bigger than the James Boyd protests. 

Fri, 04/17/2015 - 14:53 | 6003908 bearwinkle
bearwinkle's picture

Look what happened to the police force in New Orleans when Katrina hit the shore. They all grabbed their families and took off. If the SHTF in some major city the police and city officals will be gone like the wind. In most cities the police have take home cars, pretty easy to find them - they will not hang around when it gets bad.

 

Fri, 04/17/2015 - 12:53 | 6003374 Money Boo Boo
Money Boo Boo's picture

the only way to fix this curve is a good ol MIC sponsored Woar of global proportions.  Why wouldn't the biggest bully in the world just go there when the times comes?

 

They will of course, just need to pick the spot first. Russia or Middle East or both?

Fri, 04/17/2015 - 15:01 | 6003928 taoJones
taoJones's picture

interesting notion...

 

So while the cat's away, i.e. involved in ME/Euro/Asian/S.A conflicts...

the mice play, i.e. overthrow TPB?

Fri, 04/17/2015 - 12:40 | 6003328 junction
junction's picture

More like muppets on a frying pan.

Fri, 04/17/2015 - 12:55 | 6003385 813kml
813kml's picture

Is $35 trillion a lot of money?  I can't tell anymore...

Fri, 04/17/2015 - 12:58 | 6003390 kaiserhoff
kaiserhoff's picture

No, because you could never convert more than a small fraction of it to PMs;)

Fri, 04/17/2015 - 13:00 | 6003400 813kml
813kml's picture

BTC to the rescue, $35 trillion divided by infinity equals 42.

Fri, 04/17/2015 - 13:51 | 6003588 Goldbugger
Goldbugger's picture

If you were born in the year 1 and spent a  million a day and lived to be 2015 you sill wouldn't have spent a trillion more like 735,475,000,000.  If you look at it like that you have to say holy shit!

Fri, 04/17/2015 - 16:22 | 6004234 bid the soldier...
bid the soldiers shoot's picture

 

It's not a lot at all.  

I'd give you a handful beans for it, if you ever get that much .

Fri, 04/17/2015 - 12:40 | 6003329 Handful of Dust
Handful of Dust's picture
Fannie and Freddie Restart Risky 'Affordable Housing' Programs

 

http://www.foxbusiness.com/industries/2015/04/17/fannie-and-freddie-rest...

Fri, 04/17/2015 - 15:45 | 6003890 SERReal1
SERReal1's picture

They gotta keep re-inflating that real estate bubble. Let's party like it's 2005!

Fri, 04/17/2015 - 15:14 | 6003972 Newspeaktogo
Newspeaktogo's picture

If you do something  wrong, then  it's  bound to work out great if you try the same wrong  again...Right?

Fri, 04/17/2015 - 15:46 | 6004080 SERReal1
SERReal1's picture

What do they call doing the same thing over and over again expecting different results again?.......

INSANTIY, which is precisley what all of the markets are steeped in.

Fri, 04/17/2015 - 12:42 | 6003335 Stoploss
Stoploss's picture

Debt is wealth!!!

Everything is awesome!!!

Fri, 04/17/2015 - 13:10 | 6003428 Money Boo Boo
Money Boo Boo's picture

freedom is slavery, slavery is good, woar is groovy, killing brown people for oil is easy, pillaging the world of resources is fun!!

 

/s

Fri, 04/17/2015 - 12:43 | 6003342 Seasmoke
Seasmoke's picture

Come on in. The waters fine. 

Fri, 04/17/2015 - 12:44 | 6003346 mtndds
mtndds's picture

stick a fork in it.

Fri, 04/17/2015 - 13:15 | 6003449 Alhazred
Alhazred's picture

no thanks, i have bn FORKED enough by central bankers.

Fri, 04/17/2015 - 12:46 | 6003357 aliki
aliki's picture

shit doesn't hit the fan until rates are forced higher & yield on the U.S. 10-year and/or any quality AAA credit crosses the threshold which is the average dividend yield on the S&P500.  thats when the irony of this entire experiment will blow-up in their face when all the people they've forced into dividend stocks (you know, those "stocks with bond-like characteristics" - another way of saying completely mis-pricing risk). there will be a "great rotation" alright. its gonna be out of stocks (primarily dividend payers) and into the bonds that the bond holders who have been jamming into seeking any small (safe) yield they can get BUT haven't yet understood they lose $$$ on principal when rate move higher are puking out.

Fri, 04/17/2015 - 12:50 | 6003365 Sam Spade
Sam Spade's picture

Lacy Hunt is a rare bird:  he’s both a superb economist and a historian of the US bond market.  His quarterly reports are generally worth multiple readings.

Fri, 04/17/2015 - 12:51 | 6003369 TheReplacement
TheReplacement's picture

What we need is for someone to drop a huge deuceski  in the pool to scare the frogs out.

Candybars for everyone!

Fri, 04/17/2015 - 12:52 | 6003371 oudinot
oudinot's picture

iF YOU REALLY THINK ABOUT IT, MONEY CREATION CANNOT GO AHEAD INFINTELY WITH DEBT, JUST LIKE OUR UNIVERSE NOW EXPAND THEN CONTRACT WILL CONTRACT IN THE FUTURE, THE ONLY WAY THE MONETRAY SYSTEM CAN STILL FUNCTION IS WITH NIRP.

Fri, 04/17/2015 - 13:27 | 6003482 sgt_doom
sgt_doom's picture

If you really think about it?

 

When was the last time you actually thought about it?

You are talking about, just like the bullcrapmeisters featured, debt-based money creation --- only the money masters believe in debt-based money creation as opposed to debt-free money creation.

Now what's that tell you, thinking boy?

Fri, 04/17/2015 - 13:29 | 6003484 FrankieGoesToHo...
FrankieGoesToHollywood's picture

Nothing can go ahead infinitely - regardless if it is tied to debt or not.  This is a finite world.

Fri, 04/17/2015 - 14:27 | 6003791 Crocodile
Crocodile's picture

You sir are correct, for there is the state of "time", a created thing, with both a beginning and end AND there is the absence of time dimension, often known as the eternal state (absence of time is that state).  In perspective, darkness is the absence of light and when the light (truth) comes, then the darkness flees quickly.

Fri, 04/17/2015 - 14:24 | 6003776 Crocodile
Crocodile's picture

If the universe were to contract; it would look like the upcoming financial calamity; total IMPLOSION.

Fri, 04/17/2015 - 13:09 | 6003372 Itchy and Scratchy
Itchy and Scratchy's picture

Just wait 'till the 'central bankers' start turnin' on eachother! And just wait 'till the much desired inflation returns with a vengeance! His 'real rate of the return' turds will be quickly powered flushed down the toilet! The 30Y Fixed Income Bull Market 'love-fest' is quickly coming to an end! I can't believe this dude still hangs with the Lacy handle!  

Fri, 04/17/2015 - 12:54 | 6003380 BullyBearish
BullyBearish's picture

Who is responsible for abusing the system where "money" is created out of thin air and used it to enslave the majority?  How long before the majority wakes up and rejects the abusers?

Fri, 04/17/2015 - 13:14 | 6003396 Itchy and Scratchy
Itchy and Scratchy's picture

The tide goes out first before the 600 mph tsnami hits the shore! If you are asleep or ain't on the highland u r toast!

Fri, 04/17/2015 - 13:13 | 6003441 will ling
will ling's picture

until the sheepulace finds blood palatable.

Fri, 04/17/2015 - 13:33 | 6003502 sgt_doom
sgt_doom's picture

" How long before the majority wakes up and rejects the abusers?"

As someone who pondered that question many decades ago, I am even more despondent over the answer today, than I was back then.

A man I met, the father of a friend who was a co-worker of mine, and although not one of the super-rich nor an inner circle type, but the highest level civil service guy who ran a newly created federal agency and conversed with several who attended the Bohemian Grove meets and Bilderberger meets, made a series of predictions back in 1978 when he was attempting to explain the overall scheme of things to us, and the predictions he made, beginning with the collapse of the Soviet Union circa 1990 (remember ---- this was back in 1978), came true, and his final predition was from the beginning of the 21st century on, the number of people in the know would dramatically shrink, and the number of brain-dead sheeple would dramatically grow, thanks to the eventual concentration of monopoly ownership of the media, both nationally and globally.

Wish he had been wrong . . . .

 

Fri, 04/17/2015 - 13:21 | 6003381 lakecity55
lakecity55's picture

Hey, US Combat force all over the SW, ISIS, Illegals, what's not to like, Bith-Chez!

"Are you Bill Smith?"
"Yeah."
"NAR member?"
"Uhh, yeah, so what?"
Blam! Blam!"
"9 Delta, 23 Trifox. Tango Down."
"Roger. Proceed to Tango LC."
"Roger."
"( Delta, 23 Foxtrot. Five down. Tango LC has assets."
"Roger, copy. Prepare for Air Strike."
"9 Delta, be aware LC Tango is on the move. Two more Assets down."
"Roger. Stand by."

"Control, be aware LC units have activated SPark-Gap trnmsttres with parallel batteries! Drones are not responding!

"Borken Arrow!!! Drones Firing our LOcation! Bak Off!

Fri, 04/17/2015 - 13:23 | 6003473 lakecity55
lakecity55's picture

Many people like myself spent 20 years with ECM.

When the time comes, You Will Get Fucked..

Fri, 04/17/2015 - 12:55 | 6003384 Weaponized Innocense
Weaponized Innocense's picture

I think I'm turning Japanese vs hyper inflation ~
Guess we will have to see how things unfold..... What policies taken....
I mean they are damned if they do and damned if they don't .... Not only with has the opposite effect factor in play among other things....
We shall see.... Now if it is hyperinflation for the little folks...... That can't be made illegal so nibbles on long yields w extra money isn't s bad move when yields r NIRP if they go there... I nibbled on a yield low for the tapr move a little bit back so they wouldn't get away from me.... But we know that's been put on hold .....
If we do get super hyper inflation I don't believe I will holding tapr amd sbnd etc for the high highs for a cash out but
Then again..... We shall see how I feel later
Got to hope the entire system won't be so screwed u won't get paid and if u do it will be money worth having

Fri, 04/17/2015 - 13:00 | 6003399 p00k1e
p00k1e's picture

We’ve all tried boiling a frog.  It doesn't work.  They hop right out of the kettle. 

Fri, 04/17/2015 - 13:17 | 6003455 Alhazred
Alhazred's picture

the trick is to flash boil the water with thermite

Fri, 04/17/2015 - 13:48 | 6003568 Itchy and Scratchy
Itchy and Scratchy's picture

When I bot my 1st house I had a bad problem with thermites!

Fri, 04/17/2015 - 13:00 | 6003401 Atx22
Atx22's picture

i always ask my slef is who the hell is the world in debt to they always keep saying gobal debt is 100 trillion but to know do we owe this money to  in why dont they just forget about the debt as a whole in start over

Fri, 04/17/2015 - 13:06 | 6003408 foodstampbarry
foodstampbarry's picture

All hell will break lose when the black messiah is out of office. The jews at the fed and their white guilt will not let it happen until granny hitlery or some douche in the GOP takes over.

Fri, 04/17/2015 - 13:03 | 6003409 Smiley
Smiley's picture

The system is ruined, get out while you can.  Soon they will force you invest and play more and more (for your own good of course).  Get out now while you still have some skin left.

Fri, 04/17/2015 - 13:07 | 6003422 Itchy and Scratchy
Itchy and Scratchy's picture

Agreed. The scarey part is not having any spare ammo or seed-corn to plant. The Kenysians will learn the very hard lesson that you can't print your way to prosperity ... AGAIN!

Fri, 04/17/2015 - 13:17 | 6003456 Crocodile
Crocodile's picture

Wait till they find out that when you plant a debt note; no amount of fertilizer will make it grow.

Fri, 04/17/2015 - 13:21 | 6003465 Itchy and Scratchy
Itchy and Scratchy's picture

And there sure is lots of 'fertilizer' to go around in today's FED-centric environment!

Fri, 04/17/2015 - 13:04 | 6003414 pakled
pakled's picture

debt is an increase in current consumption in exchange for a decline in future spending

 

That's a great way of looking at it.... and a nice sound-bite for explaining to others why what's coming is going to come.

Fri, 04/17/2015 - 13:12 | 6003434 HenryHall
HenryHall's picture

That's not how Lenin saw it when he was faced with debt.

Fri, 04/17/2015 - 13:05 | 6003418 Omega_Man
Omega_Man's picture

how can 2% be considered 'excellent'? how can it be even called  good? 2% return sucks......

Fri, 04/17/2015 - 13:10 | 6003431 Itchy and Scratchy
Itchy and Scratchy's picture

When this doozie is over the record high 20% interest rates of the early '80's will look like a bargain!

Fri, 04/17/2015 - 13:27 | 6003483 Stumpy4516
Stumpy4516's picture

From his comments he proposed inflation will go 1% negative and used that to get a potential 2 1/2% return? 

Did I get that wrong?  So he thinks current inflation is close to zero.  I hope I am missing something from his comments.

Fri, 04/17/2015 - 13:37 | 6003519 Itchy and Scratchy
Itchy and Scratchy's picture

Only if they can get the price of oil back down to US$10/bl without wiping out all the resource based economies. Hard to believe a supposedly sharp dude with a girl's name would risk at least 50% of his capital for a 2% return at anytime! My bet is a nasty stagflationary scene where everyone loses!

Fri, 04/17/2015 - 13:12 | 6003436 youngman
youngman's picture

I wonder if Julia Child has a reciepe for boiled investor.....

Fri, 04/17/2015 - 13:13 | 6003440 Amy G. Dala
Amy G. Dala's picture

"Monetary Policy Is Ineffectual."  Then it is quite obvious that what is needed is . . . moar monetary policy!

Fri, 04/17/2015 - 13:15 | 6003447 Crocodile
Crocodile's picture

"Monetary Policy Is Ineffectual."..That is only based on what perspective you are viewing it from; for a few it is working quite nicely.

Fri, 04/17/2015 - 13:14 | 6003442 tonyhollow
tonyhollow's picture

I'm sitting here, nearly asleep in Asia, reading America's morning news on ZH, idly wondering... What is the oldest debt the US took on that it is still making payments on? 

I hope it's something good. Like a giant camera when they were first being invented, priced insanely high, thousands of dollars, payed off at 20¢ a month, and used for about 3 years to photograph past president's mistresses in the white house doing naughty things, Clinton era things, long before Bill's Wet Willy made America blush, and gave me the only thing I've ever been proud of a president for. 


Something like that I hope


'night, America

Fri, 04/17/2015 - 13:21 | 6003458 Itchy and Scratchy
Itchy and Scratchy's picture

Of course we all know that it will never ever ever happen in today's Goldilocks market .... but can you imagine if all of a sudden +10% inflation emerged suddenly (as it ALWAYS does) in todays financial environment? Do you think 'ol Yellen will say she saw it comin'?

Fri, 04/17/2015 - 13:21 | 6003466 Solio
Solio's picture

mmm mmm boiled frogs!

Fri, 04/17/2015 - 13:22 | 6003468 Victory_Garden
Victory_Garden's picture

Hey!

Does anyone know if there is a false flage event planned for Sunday, or Monday to be blamed on US patriots that will actually be executed by al-CIA-Duh/isis/ what ever the name of the day is for the govt sponsored, financed, and supported terrorists that are training in mexico down by the Texas and New Mexico borders?

Hummm...what a set up this is turning out to be.:

FBI Holds "Special Meting in Juarez to Adress ISIS, DHS not invited:

http://www.judicialwatch.org/blog/2015/04/fbi-holds-special-meeting-in-j...

Major ‘Dirty Bomb’ Drill Set for This Weekend in Northern California:

http://21stcenturywire.com/2015/04/08/major-dirty-bomb-drill-set-for-thi...

Leaked Military Bulletin Labels Patriot Groups, Militia ‘Domestic Terrorists’:

http://govtslaves.info/leaked-military-bulletin-labels-patriot-groups-mi...

 

Darn them babylonians!

Fri, 04/17/2015 - 13:35 | 6003494 exartizo
exartizo's picture

Santelli is a Talking Head trying to make people think he's not a Talking Head.

Talking Head Definition: 'scumbag', 'opportunist', 'one who talks on television for money', syn:'mass media prostitute'

Fri, 04/17/2015 - 13:37 | 6003520 lakecity55
lakecity55's picture

Rocn' Roll Hootchie Koo!

Fri, 04/17/2015 - 13:37 | 6003521 I Write Code
I Write Code's picture

Debt isn't even consumption, just transfer of ownership.

Fri, 04/17/2015 - 13:39 | 6003529 AbbeBrel
AbbeBrel's picture

Variations on "Bandersnatch" :

.

And the Banker, inspired with a courage so new
It was matter for general remark,
Rushed madly ahead and was lost to their view
In his zeal to discover the Squark.
But while he was seeking with smartphone and care,
A Bernankersnatch swiftly drew nigh
And grabbed at the Banker, who shrieked in despair,
For he knew it was useless to fly.
He offered large discount—he offered a check
(Drawn "to bearer") for seven-pounds-ten:
But the Bernankersnatch merely extended his neck
And grabbed at the Banker again.
Without rest or pause—with those druckious carts
Went savagely printing around—
He duplexed and hovered, and he ejected and stacked,
Till fainting he fell to the ground.
The Benernakersnatch flew as the others appeared
Led on to that heli-born hell:
And the Yellen remarked "It is just as I feared!"
And put a new dot on her bell.

Fri, 04/17/2015 - 13:41 | 6003544 exartizo
exartizo's picture

ok.

Graduate School level vocabulary is NOT allowed here.

Also: Making up new words can get you into trouble with the Vocabulary Police.

beware.

Fri, 04/17/2015 - 13:41 | 6003545 Itchy and Scratchy
Itchy and Scratchy's picture

This 30Y debt extravaganza is the mother of all bubbles including Dutch tulips! When the music stops expect ZERO (or less) liquidity!

Fri, 04/17/2015 - 15:47 | 6004084 bid the soldier...
bid the soldiers shoot's picture

But how many RAD should we expect?

Over 200 or under?

Radioactive minds want to know

Fri, 04/17/2015 - 16:57 | 6004354 Squid Viscous
Squid Viscous's picture

"Well... we're waiting..."

Judge Smails

Fri, 04/17/2015 - 13:51 | 6003589 Element
Element's picture

If QE is really the answer just print a big enough stimulus package already!

"And don't be bullshittin' with the sauce!" - Cheech and Chong, Chinatown.


Fri, 04/17/2015 - 13:58 | 6003627 NoWayJose
NoWayJose's picture

After the collapse of the US Dollar, I know that I will be able to trade my PMs for the new "Hillary Bucks" - even if I have to go to the black market like they have in Venezuela and Argentina!

Fri, 04/17/2015 - 14:14 | 6003717 juggalo1
juggalo1's picture

Amazing.  So now the collapse has been kicked all the way through Obama's presidency.  And most of the gloom and doomers on this site were confident that would only be 4 years.  Now it's been almost 7 and people are starting to realize the crash won't come during Obama.  Maybe you need to realize that IT'S NOT COMING.  YOUR MODEL IS FLAWED.

Fri, 04/17/2015 - 17:20 | 6003786 Itchy and Scratchy
Itchy and Scratchy's picture

Seems like you missed the part of global debt rising +50% since the credit debackle! As R Paul says,' If debt was the problem in the first place ... how is moar debt the solution now?'

Fri, 04/17/2015 - 15:14 | 6003969 arby63
arby63's picture

Things are a mess friend. 

Fri, 04/17/2015 - 15:21 | 6003988 Ban KKiller
Ban KKiller's picture

Rome didn't collapse all in ONE day...in fact most didn't notice the "fall" as it was slow...then one day being a Roman didn't mean what it used to. 

Fri, 04/17/2015 - 15:55 | 6004115 juggalo1
juggalo1's picture

I remember reading an idiot who was talking about how Nero destroyed the Roman empire by debasing the currency leadingd to catastrophic inflation.  Are you serious?  Nero debases the currency and 3 centuries later the empire is racked by crippling inflation amid an economic collapse, and you imagine a straight line causation one to the other?  If the American "empire" lasts three more centuries after creation of the Federal Reserve, I would imagine it is a sign that they did a pretty good job.

Fri, 04/17/2015 - 17:17 | 6004410 Itchy and Scratchy
Itchy and Scratchy's picture

Hmmmm ....since the hard werkin' FED showed up the dollar has lost around an un-catastrophic 93% of its purchasing power give or take a few %. If America last for 3 moar centuries I wonder how much of that dollar will be left? I guess it don't matter 'cause debt don't matter cause it don't affect consumption? Why bother even collectin' it?

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