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There Will Be No 25-Year Depression
Good and Bad News
Today, we have bad news and good news. The good news is that there will be no 25-year recession. Nor will there be a depression that will last the rest of our lifetimes.
The bad news: It will be much worse than that. On Monday, the Dow rose another 43 points. Gold seems to be working its way back to the $1,200 level, where it feels most comfortable.
“A long depression” has been much discussed in the financial press. Several economists are predicting many years of sluggish or negative growth. It is the obvious consequence of several overlapping trends and existing conditions.
Newspaper from October 24 1929, a.k.a. “Black Thursday” – at this point, the panic had just begun with the market losing 11% in one day. On the next two trading days (Friday and Saturday – at the time, the market was open on Saturdays) the market rebounded slightly, then came “Black Monday” and “Black Tuesday”, which erased all doubt about the seriousness of the situation
Old People Are Dead Wood
First, people are getting older. Especially in Europe and Japan, but also in China, Russia and the US. As we’ve described many times, as people get older, they change. They stop producing and begin consuming.
They are no longer the dynamic innovators and eager early adopters of their youth; they become the old dogs who won’t learn new tricks.
Nor are they the green and growing timber of a healthy economy; instead, they become dead wood. There’s nothing wrong with growing old.
There’s nothing wrong with dying either, at least from a philosophical point of view. But it’s not going to increase auto sales or boost incomes – except for the undertakers.
Mr. Hislop is looking forward to booming business
Photo credit: State Library of Queensland
The Cure for Debt? More Debt!
Second, most large economies are deeply in debt. The increase in debt levels began after World War II and sped up after the money system changed in 1968-71.
By 2007, US consumers reached what was probably “peak debt.” That is, they couldn’t continue to borrow and spend as they had for the previous half a century. Most of their debt was mortgage debt, and the price of housing was falling.
The feds reacted, as they always do… inappropriately. They tried to cure a debt problem with more debt. But consumers were both unwilling and unable to borrow. Their incomes and their collateral were going down. This left corporations and government to aim only for their own toes.
Central banks created more money and credit – trillions of dollars of it. But since the household sector wasn’t borrowing, the money went into financial assets and zombie government spending.
Neither provided any significant support for wages or output. So, the real economy went soft, even as the cost of credit fell to its lowest levels in history.
In order to revive the credit creation machinery, the Fed has monetized incredible amounts of debt, via Saint Louis Federal Reserve Research. With the end of QE 3, its balance sheet has begun to subtly decline … click to enlarge.
The Cronies Are in Control
Third, the developed economies have been zombified. The US, for example, is way down at No. 46 on the World Bank’s list of places where it is easiest to start a new business. And only one G8 country – Canada – even makes the top 10.
How to get ahead in the world of today….
Cartoon by Stahler
Paperwork. Expenses. Regulation. High taxes. High labor rates. Entrenched competition with aging, loyal customers. All are endemic from Boston to Berlin to Beijing.
Leading industries – heavily controlled and regulated, including defense, education, health and finance – are practically arms of the government. All are protected with high barriers to entry and low expectations. Competition is barely tolerated. Innovation is discouraged. Mistakes are forgiven and reimbursed.
Meanwhile, the masses are encouraged to become zombies too, with generous rewards for those who 1) do nothing, 2) pretend to work or 3) prevent other people from doing anything. After all the zombies, cronies and connivers get their money, there is little left for the productive economy.
How it all works in crony heaven – until it doesn’t anymore – via bastiatinstitute.org
The Solution Begins When Markets Crack
Typically, these problems – too much debt, too many zombies, and too many old people – lead to financial crises. Then, they are “solved” by either inflation or depression. And the solution begins when markets crack.
Markets never go up forever. Instead, they go up, down and even sideways. They breathe in and out. And after sucking in air for the last 30 years, US financial assets are ready to exhale. Legendary asset manager Bill Gross comments:
“When does our credit-based financial system sputter/break down? When investable assets pose too much risk for too little return. Not immediately, but at the margin, credit and stocks begin to be exchanged for figurative and sometimes literal money in a mattress.”
When that happens, problems begin to take care of themselves, in one of two ways…
A quick, sharp depression wipes out the value of credit claims. Borrowers go broke. Bonds expire worthless. Companies declare bankruptcy. The whole capital structure tends to get marked down as debts are written off and financial assets of all kinds lose their value.
Or, under pressure, the feds print money. Debts are diminished as the currency loses its value. The zombies still get money, but it is worth less. Inflation adjustments cannot keep up with high rates of inflation. Pensions, prices and promises fade. Either way, the slate is wiped clean and a new cycle can begin. But what rag will clean the slate now? Stay tuned…
You knew there would eventually be a picture of the living dead.
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Costa Rica, of all places, provides an interesting case study.
If one looks at this small, prosperous country with clarity, one wonders what to call it.
Is it socialism? Is it a welfare state? What is a shared concept of "Social Justice" which states that there is a collective expectation of a Basic Safety Net, through which no one should be allowed to fall? By and large, I think Costa Ricans share this concept of Social Justice, a concept which is somewhat foreign to many people in the US, accustomed to our hyper-individualistic dog-eat-dog ethos. [Certainly, there is a malaise among large segments of the Costa Rican electorate with the current political landscape but political parties are fluid; parties come and go, unlike the US where they live on forever.]
There is a (small) "Canasta Básica" (Basic Basket) of food products whose prices are fixed by the State. Once upon a time these products were sold in state-owned stores (CNP - Consejo Nacional de Producción), very basic warehouses where people living on the economic margins could be assured of enough food to "stay full" at prices that were not completely beyond reach. That project was killed by the IMF and the stores closed very quickly and prices rose precipitously. Is that socialism?
Anyone who has dealt with Costa Rican state insitutions know that Costa Ricans are really good at writing rules and then really good at trying to follow them to the letter. The fastest way to make a Costa Rican functionary go SLOWER is to try to make the functionary go FASTER. Patience, good answers to questions and good civilized manners will go a long way but in the end you will have to conform to one degree or another. Corruption is rare. Is that fascism?
Perhaps, it is just a Just Place. That's right, a place that is Just and Fair.
Costa Rica stands in stark contrast to Honduras.
{Honduras has always been known as little more than a large plantation run for the benefit of a small élite; it is now the closest thing in the world to the "Good Old Days" of unbridled Libertarian Capitalism alluded to here. The CIA engineered a coup a few years back and once again, "Our S.O.B." is in the Presidential Palace. It is a dystopian nightmare: highest murder rate in the world, soaring inflation and crashing living standards, and life expectancy on a par with tropical Africa, and a military/police state of terror on the streets. Clean water, electricity, health care, decent housing are all luxuries in Honduras.}
THe following are all Costa Rican State Institutions. The Cost Rican State is a big player in the economy. By and large they all function very well.
AyA (Acuaductos y Alcantarilllados) - Water and Sewer Institute. Costa Rica drinking water standards are among the highest in the Americas.
ICE (Instituto Costarricense de Electricidad) - Telecommunications (Cell, Landline, DSL), Electricity (generation: hydro, wind, solar; sale: wholesale to cooperatives and retail). ICE has brought electricity and telecommunications to nearly every corner of this rugged country, at very reasonable rates for reasonable consumption. They are leaders in wind energy.
CCSS ("La Caja" Caja Costarricense de Seguro Social) - Universal health care (24 Hospitals, country-wide system of basic clinics); parallel private system works in harmony with La Caja. Costa Rica has very good health care and a surplus of doctors. Costa Rica's health indicators meet or exceed those of the United States in all catagories; worst problem areas in Costa Rica are much less severe than worst problem areas in the US.
INCOFER (Insituto Costarricense de Ferrocarriles) - Railroad (suburban commuter rail that covers the Metropolitan Area; tourism passenger; freight). INCOFER conceptualized, planned, and implemented a wildly popular suburban commuter train service in less than 8 years.
RECOPE (Refinadora Costarricense de Petroleo) - Sole Petroleum Refiner and distributor; fixed prices at privately-held stations nation-wide
FANAL (Fábrica Nacional de Licores) - Liquor importation and production monopoly
INS (Instituto Nacional de Seguros) - State Insurance Monopoly [auto (no-fault), workers' comp, home, commercial, liability; also establishes and funds Benemérito Cuerpo de Bomberos - Costa Rican Paramedics, EMT's and Firefighters). Ex-patriots from the US dealing with INS invariably are impressed with the low rates, speedy and straight-forward procedures, and overall great service from INS. "Why can't we do this in the US?"
Banco Agricola y Crédito de Cartago
Banco de Costa Rica
Banco Nacional
Banco Popular State-owned banks which provide complete range of banking services with latest technology. When Banco Anglo-Costarricense had internal difficulty some years back, it was quickly liquidated and deposits covered and transferred automatically. Private banks operate in parallel.
You are correct. Even Marx knew that capital is necessary but not in the hands of a few good SOBs. What is wrong with equality? It's better that enslavement (what we have now).
Correction: Made the US the most indebted nation in the world and China the welthiest and fastest growing in record time. Wake up to reality of how capitalism has soldout America in exchange for consumerism, short term gain and loss of manufacturing base. Constitution has nothing to do with it---blame the polititians and bankers
Sad to say there never was a 'free market capitalist economy'. The closest thing we had was maybe the early to mid 1800's - then the robber barrons came along and we had monopoly/financial capitalism. After that, the FED was established to hide the direct influence that the titans of finance & industry (Morgan, Rockefeller, et al) had on the economy from the general public.
I think it's safe to say that we've only ever had different levels of oligarchy (and whatever distorted form of capitalism that results from that). And as much as the founding fathers tried to prevent that from happening, something obviously went wrong along the way.
The founding fathers were in on it. Don't kid yourself.
right, when the USA had plenty of cheap labor to exploit, including the Chinese and the blacks. Oh yeah ANYONE can have a "free market" economy that way! DOnt you fuxxers ever stop with your "free market" BS?
let's see how Norway, Sweden, Holand, Denmark, Swetzerland are doing with Socialists in charge. Why, they are doing pretty damn good!
Dont you fuxers ever stop with your anti Socialists propaganda BS?
Who needs a reason??
Amen. I only drink when a politician or banker (or climate scientist) tells a lie. I will probably never sober up at this rate.
Politicians should be changed like Diapers : Often and for the same reasons.
- Mark Twain
There is no such thing as "Out of Other Reasons to Drink". Everytime I look at or listen to Obozo, I find a whole new reason to drink. If I find I'm short a reason or two to embibe, I simply go to YouTube and play a video of Obummer, Pelosi, Reid, et al and quickly find that only Rum soothes the pain.
Fate the Magnificent
"Push the Button, Max"
Don't worry, be happy lol
Just go live in NYC - specifically, Manhattan!
Elite Castles In Feudal Manhattan http://wp.me/p2kmGE-1Mn
Read the Big Book.
Agreed - we are living in unchartered times in other aspects of humanity in which can hopefully pick upt he slack for our dsyfunctional financial system. It's all about where we place our priorities and innovate in collobaration moving forward.
The Dark Ages weren't so bad.
https://www.youtube.com/watch?v=1bEC6Ve1HOo
I would not presume that it could not happen again. The Dark Ages were emphasized for the cultural and economic deterioration of Western Europe following the collapse of Rome. I would rather prepare and not need it than need it and not have it...
Come join us for free at www.gunsgrubandgold.com
Everyone is welcome!
Survival links, financials, blogs, etc!
>>>Will we return to the dark ages Book of Eli/Road Warrior style for ever?
You're right - it won't be forever. But we could indeed be looking at new period of Völkerwanderung, where "Atlantic civilization" is ploughed under, in whole or in part, to be replaced by something new. Hopefully, net-net, it will be an improvement.
Anecdotally, I and many I know, would not lift a finger in support of the "nations" in which we live, particularly that big one south of Canada. If the USA is set on fire, I wouldn't bother to piss on it. I'd guess that this attitude is fairly typical in a complex culture that has passed its use-by date, and is ready to die.
Yep: Dark Ages II - The Sequel
This time with radiation!
The Dark Ages with a warm sexy glow.
Yep: Dark Ages II - The Sequel
Debbie does deflation ...
GUbmint: ctrl-alt-del
Ruling elected political elite + crony capitalists + gubmint bureaucrats = sandpapered skin off, buried in salt, then thrown out in the middle of the Nevada desert.
Doom porn like this makes me go a big rubbery one.
can't wait for the crash. anything is better than this stagflation. this shirt I pulled out of the hamper is getting dirtier than the ones I rejected.
it's time to do the laundry.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
What the fuck did he say that anyone who has been reading ZH for awhile didn't already know???
German Hyperinflation in the 1920's ended instantly when the currency was replaced.
Same thing here. The unpayable debts and companies holding them will be zapped out of existence fairly quickly when "it' happens. "it" will be a worldwide reset. Maybe a couple years to re-establish trust, an international currency and rules. A hot war could delay all that.
The real surprise now is the gradual toilet bowl drain of the economy folding in slow motion before it goes snap.
Demographics is the problem now. A wipe out does not solve welfare and pension problems - among other issues.
I agree, but my perception is that most pensions and welfare will simply vanish....leaving people without support.
Well then, bonds are only getting warmed up (on the upside) if this is correct...and I don't think it is.
"Come on bro!?!? I'll buy your ETSY!!"
Nations can snap back from horrible economic crashes no matter how bad as long as the right policies are followed:
http://debtcrash.report/entry/alan-greenspan-angel-or-demon
Love them crystal balls!
Do they have to be crystal?
They don't have to be crystal but no way am I going to say. "Love them balls." Oh.. I just said it.
Great article. Especially the Zombie ending and the Corny cartoon.
The long, hard turn down does nto have to be for everyone. Unless there is a global conflagaration, it sure looks like difficult muddle through times at the very least or really really hard times, but for the west.
Not here, in India. The demographics are fine and loans are at 18-24%.
Bring on the money-lenders and pharisees.
It'll take another 15 years to eviscerate India completely. Same can be said for Malaysia/Indonesia/Mynmar/Vietnam....the re-emboldened Asian Tigers...
From 50,000 feet, these controlling cats still have too many levers to pull to keep the game going.
Sequence 15:
https://www.youtube.com/watch?v=DJU_flXZMuk
Agreed, many levers and many games yet to be played but as these levers are pulled the police state will need to ratchet up to enforce these moves against what is left of free peoples. 10-15 years is probably about right.
I heard India has significantly more young boys than young girls.
Expecting that to cause any problems down the road? Or just give all the 'troublesome' boys injections of estrogen?
The boys are being neutered into homosexuality. Kind of like the AIDS boom in the illegal latino population in the US.
Not enough money to do anything but survive, they find fleshly comfort with each other.
So, yeah, and by the way, unbelievable as it may sound, India's Birth Rate is the same as the US's...
Can we get this started tomorrow. That would be great news.
bill you can still tell a good story. when the wind blows hard the dead hollowed out tree will come crashing down...
It takes two things for a mighty oak to fall: a strong wind and the rot within.
Bullish for undertakers.
kidneys for burrial expenses...
And then...
Brad Pitt comes in to save the day.
And Chuck Norris.
With or without a ponytail?
But hey! Bad news is good news! hooray!
Put your hands up in the air...
If you aren't ready for the collapse now, you should learn how to handle weapons b/c you'll need them.
you miss the giant elephant in the room.
none of this would be a problem if the expansion of western banking was not halted at china's door. western banking is doing a lot of direct(fees) and indirect(corp bonds, equities)) investment in china but banking operations and ownership in china is severely restricted for outside banks. any chinese venture(ex banking. banks are only allowed single digit ownership of chinese banks) must have 51% local ownership at a minimum.
that is ultimately what the coming war is all about. in the meantime the usa and western banking system is bankrupting itself at the expense of the people. it is funny to read about the pending revolution in china for the last 10 years when it is the west that shows the classic signs of social/political chaos.
Do not forget that China is the one with millions upon millions of eligble military aged men who have zero prospects for marriage or even hand holding with a female. The Party is going to have to do something about that before it becomes a problem.
they will allow western homos to breed them and keep them happy. secret sex tourism to san francisco, new york and south florida. it's good for the economy.
Correct on the two possible endings.
But there are an infinite number of possible twists and turns before getting there.
"Cats and Dogs living together.....Mass Hysteria!"
I am getting older. Thanks to the policies of the 1% I was involuntarily retired three years ago. By your 1% economic standards for plebes liek me I do not produce, but I beg to differ because, while I do consume, it's less than I once did. Hmmm..so I can see why the 1% would consider a person like me "dead wood".
OK, but my family and community don't - at least I don't think they do.
But if you 1%ers have any plans to deal with me as "dead wood" - <cough> Soylent Green <cough> - let me remind you I probably taste like shit, but more importanly I am WELL armed and through the miracles of your 1%er vision consumerism still can hit what I aim for - at a farily decent distance.
And I am not as preprared as I should be for Mad Max Times, but probably better than most 1%ers. Bring it - I'll find your bunkers.
Oh, please. They have tanks and drones. You have hunting rifles.
Oh, please....see the word "guerilla." See also "suicide" as when lightly armed individuals take on heavily armed groups, head on. (Dont do that...)
Yeah, I can just see overweight office drones being effective guerillas. You do realize that this describes the vast majority of the population? Hunting rifles and zero training. Face it: we're fucked.
You may be fucked, and that attitude will be your downfall.
As for me and those that still give two shits? There are more of those types around than you give credit for.
Just wear a yarmelke and make the bat cave in a synagogue, you will be safe as a plate of bacon in Israel.
Everyone needs a zion disguise.
RIPS
Y'know, I live in rural MN surrounded by "God, guns, and guts" types. These people talk like big men, but I know enough of them to know they are going to be USELESS in any real crisis and probably actively dangerous, partly because concepts like sutlety are completely beyond them and partly because none of them have any real skills. They're not hardy survival types; they're gun nuts who have jobs in town that they would not survive without.
Hmmm..K
If they use a tank or done on me - no Soylent Green of me for you.
How are those tanks and drones (I'll add FA18s and F16s, tomahawks,...) working out in any number of Middle Eastern, Northern Africa, elsewhere? Lots of dead "bad people" so I assume it works.
Bon apetit.
they won't need soylent green. they just need us dead. because there will be machines to do everything - including turning you into fertilizer and applying said fertilizer to the crops OR disposing of you into some mass grave in the middle of f'ing no where that the 1%ers don't ever care to visit in the next few hundred years.
they just need the space and significantly less of us to suck up all the resources once the machines are available. then it's 1% heaven. and if you were able to get into the club before it all happens...then you're ok. if not...oh well.
Argue for your limitations and they're yours...
DaddyO
kudos for the "Illusions" quote. Richard Bach's best book.
".....You have hunting rifles."
"......You have hunting rifles" and the ability to think and act independently of the herd driven GI Joes in their USARMY MWRAPS(tm).
there, fixed it.
Don't forget bottles of flammables followed by flares. Much safer to use as you don't have live flame with a stoppered bottle full of flammables. Ever wonder why you don't see pics of "swat" vehicles on fire? Because they BURN well.
Read up on tanks and modern warfare.
Burning SWAT vehicles is illegal.
But festive.
Thermite will penetrate armor. Then what happens is a BBQ.
Yes. Festive.
Check this video out.
https://www.youtube.com/watch?v=rdCsbZf1_Ng
Can it pentrate Tank Armor? I will bet that it can. But placed on ventilation ducts...Here is Thermite blowing a safe apart.
https://www.youtube.com/watch?v=gDbyjI8hAWU
Here is a video on how to make it...It is easy.
https://www.youtube.com/watch?v=SpantDvWKUM
Well the Ahghans did quite well with their rusty AK's, Love of country and determination have won more wars than hardware.
Impassable mountain ranges help too. Just ask the Swiss about it. location location location.
Yes, not to mention the North Vietnamese despite having their entire country poisoned and burned , and facing the ultimate formidable foe.
Sooo... you're comparing hardy desert people who have been made tough as rocks by western foreign policy to fat-ass office workers in the US who happen to own a few guns and spend most of their spare time watching television?
One place you don't want to find yourself on Q99X2 and that is at the top of a pyramid.
Sanjayt(sp) Das says the globalists are moving to New Zealand to pay the military to force the rest of us to work for them in the US and other western nations. I think he is right and that New Zealand and other globalist nests iwill be the first places to be attacked during WWIII (the war against banksters to restore democracy).
Interesting Q, wehre can one read more about this? Sanjay Das is too common an Indian name...but OZ is clearly NWO capital (See Canberra's Masonic Design). Why NZ? I do hear that it is literally full of sheep AND sheeple.
You can refer to Carroll Quigleys "Anglo-Amercan Establishment" for the Elite NZ bolthole reference.
Thanks PS...
Are you in bangalor that is full of tom peep and peeple?
Geez, what the sheep (not sheeple) in NZ have to put up with. First the locals. Then the globalists. And to cap it all they get smoked to start WWIII.
Oh come on Bill, you only live and die once. Steady on with the doom-pipe. If I cark from a sudden unsurvivable doom-attack, it will not take me fifty years to die, maybe five minutes, three months tops if I starve.
I'm OK with it.
Break it down for me, it will be worse because it will last longer than I live, right?
And I, and you, may die early and quite quickly, especially if the wicked elites attack with their secret NWO merc army ... eek!!
So given I'm not around, and nor will you probably be, and neither of us can, nor would experience any of the imaginary future of the author's wild imaginings and overactive paranoia glands ... how does it become so much worse than if it lasted for all of the rest of our lives? I mean seriously, can any of you even think your way out of a wet paper bag or what? lol :D
I'm just wondering this because the 'logic', of this, and all other doom festivals on this site seem the tiniest bit suspect. Perhaps it's just a load of completely imaginary bullshit? Maybe some sheep are jumping at the shadows and figments of nothings again?
The stupidity quotient on the zh fear-bus is fricken hilarious! :D
No worries about a long term depression ... everyone know WW3 will solve the problem, and it's coming.
8 years later and we are still having the inflation or deflation debate.
SIGH
exactly...i want dates and times, I am over it... then we can start calling them out for the lying , idiot, fear mongering shitbirds that they are. just like we do to doomsday rapture preachers.
To make predictions nowadays you need crystal balls and tarot cards, not graphs.
The game is long gone from Ordinary hands.
Mark this date though: 15th August 2015
44 years from the Nixon Gold Moment.
Something will happen that date that will change everything.
And as someone pointed to me yesterday, 2015.75 is right there, no?
The day the dollar died?
Could happen.....
Always enjoy a good read during my morning bowl of oatmeal - food of choice for aging and useless Americans.
with raisins, cranberries, tumeric, cinnamon and coconut oil plus a cup of coffee to encourage my dialy morning visit to the library. that's the life!
Most of the mandatory 28 morning meds that doctors prescribe everyone over 55 (whether they need them or not) dissolve nicely into a warm bowl of oatmeal, which makes them easier to swallow.
Has ZH been overtaken by the troll brigade? Three down arrows for Smegley's super apt statement?
Now we have big pharma trolls too?
This is unsubstantiated gloom and doom talk. We may have a nice slowdown, but stocks are near all-time highs, gold is continuing its downwards trajectory and that's not going to change.
and you are an unsubstantiated... asshole. if you want to troll, don't mimic the nick of a widely respected ZH old-timer (which I sometimes suspect to be part of a team of trolls, but that's me)
Right on. The "real" TheFourthStoog-ing adds a lot of very interesting comments on ZH and is one of the many commenters I read. This guy above is a fake, so he could be a Latvian troll.
Just so we're clear the real TheFourthStooge-ing has an E after the G and this imposter does not.
"...and that's not going to change."
Ever?
Yes, I see nothing but glowing success in the free market.
Long unicorns vomiting rainbows...still think that image is funny.
New account Mr. Krugman?
I don't agree with anything this writer said-it's typical how all these commentators pushing the conservative agenda confuse the so called productive sector with those that simply consume: there are no producers without consumers.
This isn't a chicken or egg fable. Production MUST precede consumption. (period)
One cannot consume what has not first been produced. Even picking apples off a wild tree in a meadow (or gathering the fallen fruit from the ground) is an act of production, and it must logically and actually precede the act of eating the apples.
But Demand preceds both
Apple trees still grow even if no one eats the fruit.
Today it's now obvious why God didn't want Adam or Eve eating those Apples.
yes, thats why there were huge ques outside apple stores demanding they create the ipad.
no... wait... there were ques *after* apple produced the ipad.
sorry, got a bit confused there.
--------------sorry, got a bit confused there."-----------------------
As confused as those lining up to buy toys made in China, while simultaneously whining there are no yobs paying a living wage? Sob, moan, sob some more.
Or those college students trying to out class each other buying these devices with their college loan, then graduating and whining there are no yobs for me! sob, moan , sob some more.
And Apple keeping most of it's assets outside of the ussa and paying less taxes, percentage wise, than the average Joe.Sob, moan, sob some more.
Or Apple employing hundreds of thousands of destitute Chinese so they can make a device for $10 and sell it to Americans for $700 on Master Charge, the same Americans who whine "there are no good yobs" Sob, sob and sob some moar
And all those Merikan Apple Stock owners making all that money while putting their "beloved" children in the poor house.
Yes, I can see how that would be confusing.
Flysofree, I'd like to nominate you for the position as next Chair of the FED.
This is NOT the conservative agenda; it's the "progressive" agenda.
Most of what ails us is the result of Baby Boomers still having a shred of their parents money left, and also somehow leveraging the system in their favor. This is screwing the country up royally and enabling the 1% to carry on.
They'll be going broke when the 1% finally rakes in the last of the GI-Silent wealth that was transferred to the Baby Boomer kids awhile back. (Boomers themselves have no plans whatsoever to leave anything to their children) Baby Boomers will also be dying off in droves within 10 years. They are not healthy and will not live long lives after retirement like the GI's and "Silent" Generations did.
Things will be a lot more cheerful in 5 years when the Boomers finally lose their death grip on power.
But if you cut off your Grandma's head you won't be able to mooch any more dope money off of her.
Baby-Boomers are not healthy?
I beg to differ. We are the healthiest generation ever. We were raised on real food, a relatively clean environment, clean water and sunshine. The last part of the baby-Boomers and those who came after were all raised on TV dinners, etc..
Those born just after WW2 up 'till the late 50s, provided we stayed away from the tobacco, drugs and looked after ourselves, will be the longest lived generation. I believe the generations after us will certainly have shorter lives.
Boomers are, for all practical purposes, Gods.
Those who follow after them, mere beings of clay.
Could the impact of durable goods coming to the end of their natural life have helped spur the end of the depression? I know a lot is made of the impact of war but would there have been a slow ramping up of civilian manufacturing as goods wore out? With Chinese made goods breaking out of the box all we’ve been lacking all these years is the credit reset.
I had a heavy lunch.
So old people like me at 70 are dead wood? Hmmmm… Well when they come to prune me they will have to use the right combination that unlocks my house to get to me. Because the wrong combination to my house unlocks 12 ga, 308 win and 45 acp. And I ain’t go’in down easy. Not after ‘nam…
I'm not that much younger. And not that much less pissed off with the world. But the world belongs to young people and rightly so. If they fuck it up any more than older generations then so be it. That's their perogative. We had the chance to make things better and we didn't. Dunno if that makes the older generations deadwood as such but I'm not going to argue. Bill Bonner is also hitting 70 so I think he's just reflecting on the inevitability of life. I have more time for his thoughts than those of many others.
"We had the chance to make things better and we didn't."
I'm sorry, you're referring to the generation that grew up on black-and-white television and newspapers, and left behind the very same internet and world wide web that we're currently using as a worldwide digital "liberty tree" that we can post our opinions and ideas on, to share with anyone anywhere with a $100 device and internet access? The generation that grew up with slide rules and left behind machines that almost anyone can afford, powerful enough to run FEA on your mechanical models that you can then print out with your shiny new 3D printer? The generation that grew up with attitudes that said things like "spare the rod and spoil the child" and turned around and produced the research and studies that proved beyond any shadow of a doubt that hitting your kid is profoundly wrong, absolutely harmful and utterly indefensible? The generation that grew up with Super8 films that only your friends and family would watch, usually unwillingly, and left behind digital movie cameras, digital effect and editing suits, and YouTube to allow you to share your stories and creations with the entire world? That generation?
Myself, I'm a Boomer / Gen-X "cusper," came in on the tail end of one and the first wave of the next, and I'm not saying we were perfect or that everything we did was great, it wasn't; but to just dismiss everything we collectively did is wrong and defeatist. The simple fact remains that we invented and deployed some really excellent tools for the next generation to use. Furthermore, fuck giving up and saying "Oh well, we tried and failed." I still have a sound mind, working hands, still have good ideas and I ain't dead yet.
Sorry, all in all, I'm thinking we didn't do too bad. As for me, I'm not done contributing yet, I have my own project that is going to, in its own way, disrupt the status quo just a bit, and make things just a little bit better. Nothing world-shattering, more like world-nudging, in a healthy and positive way.
!Bravo!
Like a breath of fresh air you are.
Keep coming back!
Tell us how Baby Boomers invented Blue Eyed Jesus too.
Legend has it, before the Baby Boomers Jesus was a black, Afro-Haired bleeding heart.
" studies that proved beyond any shadow of a doubt that hitting your kid is profoundly wrong,"
And the proof is how today's 'kids' are so wonderful, so thoughtful, hard working and respectful to others and just a joy to be around.
"And the proof is how today's 'kids' are so wonderful, so thoughtful, hard working and respectful to others and just a joy to be around."
"The Children now love luxury. They have bad manners, contempt for authority; they show disrespect for elders and love chatter in place of exercise." - Socrates.
The youth are disrespectful, the aged are cranky. Some things never change.
Splitting hairs... things do change. They move in cycles and repeat.
Yeah - the gadgets we gave them are great. My grandson and his friends spend all the time they can playing games on a device while watching cartoons on TV at the same time.
All the computer data gathering and analysis available to government and everyone else does not appear to have produced a shred of wisdom.
I will agree we are much better at killing throughout the world and much more ready to do it
Made it better for me and mine.
I ain't no boomer - born in 1943.
We old folks got the money. It's called savings (underspending your after-tax income).
Young people with no meaningful income better be nice.
Young people with debts - I am not interested in meeting you.
Bill Bonner predicted a similar collapse near the top of the last gold bull market in the late 70s.
Instead of being chastened, he's at it again.
trollish impersonator, begone
He is pushing an agenda and just giving an opinion. The agenda is simply that "masses must live with less, so that the 1% can live with even more."
Ready for another day of shaking like a leaf under the covers while watching gold go down and your Mountain House emergency food supply dwindle?
Well, I sure am!
you are what you are: a drooling idiot not even willing or capable to set up his own nick
look^ Million Dollar Bonus has a brother!
This cunt isn't fit to tie MDB's shoes.
The "living dead" are really sociopaths; no conscience nor empathy. We wouldn't do business with them if they actually resembled zombies. But they look just like any other human being. Only when their actions don't match their words do we discover them, and usually way too late. Economic depressions are the results.
yeah, those innovative young people are really kicking ass. /sarcasm
hey bonner, why don't you come mow my lawn. i'll give you a dollar.
I don't understand. No sarcasm. What was your point?
The Illuminati know what is coming September 22-28, 2015
https://www.youtube.com/watch?feature=player_detailpage&v=jCoGDTi9RvI
22+28+2015 = 2065. 2+0+6+5 = 13. 13!!!!
Your post has been verified.
Could someone answer a question for me please? I read everywhere about a liquidity crisis. But how can that be when the Fed, ECB, Japanese CB and others are all printing money like it's going out of style?
Depends on whose liquidity you're talking about. Club members have no problem with liquidity all others must eat cake.
Thanks guys. Eeeeexcelent and helpful explanations.
If there is no chance of ROI, and only losses can be realized, lending will halt.
Very simular to being lost at sea in a life boat... Water, water everywhere, but not a drop to drink.
A good current day example are the fracking companys. They are unable to barrow at any price.
"Could someone answer a question for me please? I read everywhere about a liquidity crisis. But how can that be when the Fed, ECB, Japanese CB and others are all printing money like it's going out of style?"
Excellent question! Or, in your case, I should say "eeexxxxxccccllllleeentt question." As I see it, there are two primary factors that explain this: First, the money that is being printed is not getting out into circulation, it is instead being hoarded by the .01% and is being used to inflate asset prices, exacerbating the second problem, which is that wages are going nowhere, jobs are scarce, prices are going up and debt service is eating up way too much of the money circulating in the rest of the economy, and as loans are being paid off that money is going out of circulation, and ending up back in the hands of the .01%.
In effect, it's a lot like there's a big black hole at the top of the financial pyramid, and it's sucking the money out of everything beneath it.
(Keep going)
...which in turn is driving up asset prices like real estate...
Excellent length Explanation.
I only add that Inflation & Housing Bubbles should henceforth be outlawed as a strategy by the FED. There is no action holding down health care prices, education prices, energy prices, utility prices. The creation of housing bubble & inflation has led to higher bank fees, home insurance, property taxes, and home & multifamily dwelling prices.
Plus the Federal .gov wants downward pressure on Labor Prices & Compensation in general.
It is obvious they want to screw the average American with a Hidden Agenda that might only be self promotion and greed.
It's a solvency crisis.
The pyramid is out of order, follow the money.
1. Central bankers(Owners and printers of the $)2. Corporatists(financed by pretty much the same group that owns #1) 3. The State(Campaign cash from #2 for select sociopaths) 4. State violence (fund army for #1 and #2 overseas for resources, militarize Thumpers for #5 to keep them in line and laws from#3 to strip rights of #5 and allow army to assist the thumpers stateside) 5. Plebes, not individuals. (No ownership of anything allowed. Everything is leased or rented from #1 and 2.).
The dream is everywhere you go and everything you do will be through the company store owned by #1.
+1 Def. agree with that
excellent!
$)2. Corporatists(financed by pretty much the same group that owns #1)
100% agree with the restructure of that pyramid... and just ask recipients on the FOMC, they agree too.
I like Spanish Inquisitions Pyramid description.
But I see TBTJ Bankers and Shadow Bankers as having the most power to create money out of thin air.
I wish I had links to provide "Discovery" regarding this.
I know if you are a Prime Dealer or have the contract for EBT Cards you have special rights. The prime dealers are the ones that benefit the most from ZIRP & QE, right?
If TBTF can take money and gamble on derivatives in London, then obviously they have too much power and too much money. I don't want them to go broke, I just want to break them up and restore Glass Steagal.
I know, TBTF might be broke if they weren't allowed to move assets off the Balance sheet during audits. I would want to stop that as well. And limit the amount of Derivatives that could be created by each bank.
My Point is just that I think Money Printing is Much Faster at Wall Street Banks than at FED.
DTCC is a holding company and they have a video for prospective employees that states they have handled $1.7 Quadrillion in Derivatives (If memory serves correct)
I was expecting a numbered list
Oh well Doom and Gloom porn quota filled already for the day
I'm debating whether I should jump or drink anti-freeze
Nail Gun seems the choice for the elite.
Small airtight room, and an open bottle of nitrogen.
It will be worse for those who caused it.
And for those who are protecting them.