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BofA Confused "Why People Would Wake Up One Morning And Decide To Panic"
Over the past twelve months, the decades-old economic infrastructure that supports global dollar dominance suffered irreparable damage to two of its load-bearing walls.
First, the petrodollar system quietly began to die late last year. As crude prices plunged, the deluge of oil proceeds which had for years been recycled into USD-denominated assets dried up. Indeed, OPEC nations drained liquidity from financial markets for the first time in nearly two decades last year:
As we noted last month, a new oil price "equilibrium" (i.e. a sustained downturn) could result in a net petrodollar drain of $24 billion per month on the way to nearly $900 billion in total by 2018, according to Goldman.The implications, BofAML observed in February, are far reaching: "...the end of the Petrodollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe-haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy.”
Second, the world’s most influential emerging economies have lost faith in the US-dominated multilateral institutions that have dominated the post-war world. This has manifested itself in the creation of two new supranational lenders (the AIIB and the BRICS bank) and one major new infrastructure development fund (China’s Silk Road fund). China plays an outsized role in the AIIB and the BRICS bank and both should serve to help Beijing embed the yuan further in global investment and trade.
Meanwhile, Russia and China have begun settling crude imports in yuan amid the extension of Western economic sanctions on Moscow and Russia recently overtook Saudi Arabia as China’s number one crude supplier.
All of this marks a departure from the economic and political norms that have served to underwrite decades of dollar dominance and it goes without saying that printing trillions of dollars over the course of multiple QE iterations doesn’t help king dollar's cause.
In addition to the above, there’s certainly an argument to be made that the US effectively surrendered its right to print the world’s reserve currency long ago.
That is, once the new economics succeeded in burying sound money once and for all, and when fine-tuning macroeconomic outcomes and "smoothing" out business cycles finally became so entrenched in modern economic thought that talk of balanced budgets and a gold standard was largely relegated to the annals of history, the dollar became nothing more than another example of fiat money, unworthy of the reserve currency title.
Nevertheless, the status quo must be perpetuated, which is why Washington launched a Quixote-esque campaign against the AIIB complete with President Obama tilting against environmental and governance windmills and it is also why the likes of Bank of America must issue "research" with titles like "Econ 101: The reserve status of the dollar."
Fortunately, that particular piece of crisply-worded dollar cheerleader propaganda has one footnote that makes the five minutes we spent reading it all worth while. We present it below and leave it to readers to respond.
From BofAML:
Another mechanism could be a self-fulfilling feedback loop. If the general public watches the gloom and doom videos, loses faith in paper money and dumps it in favor of hard assets the dollar would collapse. On a similar note, if global investors believe QE is a signal of the central bank giving up on controlling inflation, they could dump the dollar, driving up the price of imported products. However, after seeing that QE has not caused inflation or triggered a dollar collapse in the last five years, it is not clear why people would wake up one morning and decide to panic.
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That's funny, because it seems like BofA wakes up in a cold sweat every single day because the half-lives of its manipulations are growing shorter and shorter.
BofA doesn't give a shit. They are not on the hook for their loses, you are. They just do what ever they want to make money every day and when it blows up, well it blows up, and they hand you the tab.
Yep. "Can't Lose" must be a pretty comfortable place to be...
" it is not clear why people would wake up one morning and decide to panic. "
The reason is that we are in a deflationary collapse and the economy will continue to slump as John Exter warned us it would.
The central banks will respond with printing money causing a bond and monetary collapse.
"This has manifested itself in the creation of two new supranational lenders (the AIIB and the BRICS bank) and one major new infrastructure development fund (China’s Silk Road fund)."
New face, old heart.
Didn't BoA wake up one morning back in 2009 or so and panic?
Never had Montezuma's Revenge?
Never had an acid flashback?
2008 2009.......did sumthin' happen
"Miss me, yet?"
-Timmah
<< deflationary collapse" >> ... I think that has something to do with the fact I bought a $35 shirt today for $1.98.
However, I think it's more of a Biflationary thingy since some items --food prices, rent and health care -- are still rising while most other segments are, indeed, as you say collapsing.
I for one will be glad when people realize that the banks & politicians & wall street are all playing a game with the debt serfs, the name of the game is watch it burn bitches, because you be serfs now, but you'll be all the more serfs when only digital currency & algo-commerce is available...
http://galeinnes.blogspot.com/2015/07/the-awakening-of-technology.html
Why panic?
because BHO is still there
because BHO’s Chewie is still there
because Viet Nam Hero Kerry is still there
because some idiot gook let McCain out of the box
because Iranian Jarette is still there
because Maidan Nuland is still there
because $100K cattle futures Hitlery still breathes
because WJC is still out there molesting stupid young girls
because the EU old bitch Ginsberg refuses to die
because SCOTUS stinks of rotten estrogen and is run by a dweeb
because we have not brought any criminal bankers to account
because Trannies rule in the US military
.. I could go on.
As a professionally-trained psychoanalist, I see that you might have some issues regarding the expression of your true feelings.
I don't want you to hold back for this session.
Tell us how you REALLY feel.
(I'm not actually a psychoanalist, but I play one on T.V.)
I see that you mentioned that trusted White House aide, Valerie Jarrett; as well as 'trannies'. Do you think that there might be an association with Choom-boi and this 'shemale' that might go DEEPER than a 'professional' relationship? Can you understand the dynamics of the feelings that Wookie might be experiencing; being passed over by a chick with a dick (who happens to be an Iranian as well)? Did you ever consider that Reggie Love has been sidelined in favor of this controlling girl (with something 'extra')? Don't you have ANY SYMPATHY for our C-in-C (faggot Muslim illegal that he is)? WHY don't you simply let him work out HIS 'gender identity' issue? Bruce became 'Kaitlyn', and perhaps Barry' needs to let out his 'Mary'.
Since you seem to be suffering from 'father's penis syndrome', I suggest that you stop panicking, and relax. ENJOY LIFE!
Sincerely,
Dr. Ruth
Classic response :-)
Gosh, maybe I never tried to empathize with those who put their heads to the ground and point their wanting, open sphincters to the west.
Maybe they need love , too.
Maybe I need to let music back into my life
https://www.youtube.com/watch?v=KAp0RvEVD9w
I need a hug.
"Miss me, yet?"
I especially enjoyed it when Hank Paulson came out for the 'big announcement', back in '08. Face red, sweating, breathing hard... I seriously thought the dude was gonna have a heart attack, right there on live PMSNBCNN TV.
WHY WOULD HANK PAULSON have an OBVIOUS PANIC ATTACK, LIVE, ON TELEVISION?
I'm buying and holding all the Bear/Stearns common that I can get my hands on (Cramer told me to!).
History may not REPEAT, but it sure does seem to RHYME.
B of A can go to HELL. I quit trusting this company right after the Japanese bought them up in the 1980's. Anyone remember THAT one? PAH! 'Bank' of 'AMERICA'...
Turbo-tax saved me 58 cents on my tax return (that Timmah doesn't need to file, because he werked for the IMF/World Bank). I guess Timmah might have been on to something!
'I have been authorized to assure you that there is no, reasonable, cause for alarm.' (B of A)
Remember when CITI was trading around 6 bucks?
That is when GLD was leveling off around 1500 and SLV was around 35.
That was before the racketeers decided they needed to skew the entire f’g marketscape to fool the sheep.
It won't be long before they run out of sheep rope
Disneyland opened in rural Anaheim 60 years ago.. the fantasy continues.
Better yet.. enjoy .. it will not get any better than this..
https://www.youtube.com/watch?v=G5IzD4HrHhM
When you factor out the reverse 10 to 1 split, it's STILL trading under 6 bucks as of this morning.
Why my picture not show? Well it's not mine...I found it on the internet. Can I keep it?
http://www.kitco.com/ind/Schoon/images/2014-01-08/clip_image002.jpg
Irv Fisher, bitchez!
Obviously BoA has not figured out that if their ATM's and banks are closed and tanks parked outside their headquarters that might initiate a panic.
Or when some zit faced dumbass millenial has all of his credit and debit cards declined at Starsucks for a Triple Venti Latte Cumcup.
Let's not get critical about which generation is sucking most dick. The millennials were tweens when the Democrats were handing out racebaited mortgages with complimentary blowies at establishments like BoA. I assume you were a recipient of said bankjob. Grump on and coot much old man.
OK, as an old man I had to laugh. Well played, junior. However, if you have anyone ANYONE you care about still in that festering boil that is BofA, implore them to move to a credit union. At least they had a cleansing and some handcuffs. Bank of America is an occult evil cesspool and it is going DOWN
.
But if creepy occult symbols aren't enough to convince them . . .
http://www.zerohedge.com/news/bank-america-forces-depositors-backstop-it...
You're too young to understand just what the 1990's were really like and LTCM is a foreign concept to most of y'all. Nope, like your generation you are wrong again as I shorted their ass and did quite well thank you. The Democrats were not the only ones handing out crap mortgages, the Republicrats did also. Perhaps you should not be so sensitive like the rest of your generation and grow some hair on your balls.
Or do you nair like the rest of the boys in your age group?
John,
Try not to be so harsh on this ignorant, arrogant, uneducated young prick.
Between the flouride and the barium/aluminum substrates that he is constantly exposed to, and the constant pre-predictive programming since his birth, he's lucky to remember where he put the keys to his green weenie Beeemer-thing.
This little bitch-boi doesn't fathom the reason why he wears his pants in a manner that shows off his ass-crack (a sign that he accepts penis-in-his-pussy-ass from the HNIC on the cell-block). He's been SOLD on this as a 'fashion statement'. HELL, this dude probably believes Ann Coulter when this Kike spokeswoman cunt states that Fukushima radiation is like eating BANANAS (and he is actively practicing this art).
The D's and the R's were COMPLICIT. SAME GOALS, but DIFFERENT methods (unless they 'settled their differences' and 'reached across/around the AISLE').
Pro'lly has a tattoo on his lower back with an arrow pointing to the butt-crack, and the statement 'FUCK ME HERE'.
The world won't end, and the economy isn't going to collapse (until it DOES). ONE SECOND AFTER this happens, this bitch is gonna be WHINING...
I'm trying to remember the color-coded stickers that Officer Jack McLamb described (on the mailboxes) during the Liberty March back in '08. Were they BLUE, GREEN, and YELLOW?
If the bitch-boy uses Jeri-Curl instead of Nair, would you consider him a RACIST?
As your name implies, an unsustainable "normal" is quite comfortable until the SHTF.
-
Thing is they are right...the average sheep is too stupid to realize what's going on....zombies won't care...this will go on for awhile
How exactly? That seems a bit flamboyant no?
Wake up, look out the window,
and see a mushroom cloud?
Dear BofA: We will take your commentary seriously when you return to MtM accounting for all of the "assets" on your books.
Since 2008 I wake up and know that there is no trustworthy banks and I take every step I can, every day, to mitigate that.
I'm not in a panic, I'm cold, logical, and regimented. I may risk a few thousand dollars in a bank for a time. But I know that all else should be in food, fuel, shelter, water, lead, gold, silver, booze and a bit more lead. The only cash I have in a bank is so I can make a purchase of lead, gold or silver without having the fucking government actively looking over my shoulder. There is no report generated for transfers of funds.
When this shit started and the bank would ask where I got the money from I'd tell them I was a Porn Fluffer, Superman, International Arms Dealer, Mafia Hitman, and IRS Tax cheat (along with a lot of other 'work'). Not one investigation, not one phone call, not one letter, nothing. Now I'm not even asked. I'm 'special'. I make large cash deposits routinely for the company. And that exception now applies to my personal accounts. (Helps to be the largest client of a relatively small bank that is owned by China.)
For the record, Wires In and Wires Out, checks written, money transfers....NONE of that is noted by banks to the government on any routine basis. Cash in/out routinely IS, however...unless you're special. The trigger amount appears to vary by bank and bank teller, but from what I understand anything $5k or more in cash in/out is the official trigger.
Has no one at BofA ever had way too much to drink, and then awoken next to a two-bagger?
...ohhh, off-topic? Never mind...
Well, at least she wasn't a ... Wait !
Do you still have both arms ?? Sorry about that.
Was invited to a big to-do from Bank of Scamerica back in 92 in downtown Los Angeles. (BofA was taking over Security Pacific and they thought I was someone important because I was moving $5 billion around.) Came in, registered, got the name tag, met the President of BofA...Hey, [my name], I see you brought the wife this time!!"
Spent an hour telling her I'd never met him before...we ate, then went elevator riding. [we're really rednecks.]
BofA are absolut Nazi government agents. If you have money with any of these TBTF banks you are a deamn idiot. Take it out, run.
I don't think many people are aware of the fact that not only is the FDIC woefully underfunded, but that their bank deposits are now lawfully the property of the bank if TSHTF.
Deposits have always been unsecured loans to the bank.
Regards,
Cooter
Those dead relatives of mine that survived the Great Depression get smarter every day.
1965: Grandpa: "Never put money in a bank and expect it back."
1973: Grandpa: "Never put money in a bank and expect it back."
1982: Grandpa: "Never put money in a bank and expect it back."
1995: Grandpa: "Never put money in a bank and expect is back."
1999: Grandpa: "EEP!"
2000: Grandpa: ..................
Up until 1995 I laughed him off. The guy was a character. Ran away from an orpahage, changed his name (only recently revealed), and became a newspaper publisher for a small town, Burlington, Iowa. Last time I visited, his press was linotype was in a thousand pieces in his garage, and his lead plates and type where in buckets (which I now have).
He and Grandma lived through the depression as young adults...my dad and mom as children. Dad tells of the smell of chalk being as food and passing out. Mom had all her teeth pulled, due to chemical/radiation experimental treatments at 13...at home, by her father, after being fed a bottle of bourbon. Grandma didn't like to talk about those times much. She focused on being positive and happy to be alive. Grandpa would really get into it when I took him to the bar, at 13, and after a couple of beers he's start talking about his younger days for a questioning kid. (Amazing, 13 years old, buying a round of drinks for everyone in the place, including me, for less than $10. Today, any 13 year old buying a beer would be thrown in prison for damned near life, along with everyone in the bar! I was detassling corn that summer for the first time.)
I rarely saw him, living out of state, but he really liked me. I didn't give a shit about going to a bar with him or whereever else. I'd listen to his stories and mentally try to sort fact from bullshit without batting an eye. Every once in a while there was some chore that never, ever, got done that I could do for him and he'd be impressed. So he'd open up and tell me sotries about going through the depression.
He had no cash, so he traded advertising for food. Then he'd trade newspapers for more food, like homemade pies, or chickens, and what little cash was generated went to pay the mortgage and clothes for the seven kids. Mom the youngest. Stories that were farther away got covered by other papers subsidizing him to go report on them. He'd try to hitch a ride with someone headed that direction. Usually a truck driver for the grocery store.
He wore boots, he said, back then. And he would wrapped layers of paper around his feet to cover the holes in the boots when he went walking (in the snow to school twelve miles uphill both ways), and he mstered cutting the paper to an exact dimension that didn't chaff his ankles or toes. A regular subscriber stopped making payments so he went to check on why and found them three weeks dead in their home. No one in the family was nearby, and neighbors were busy with their own problems to check in. (Houses, he said, weren't so close together back then, and it was winter so the freezing may have had something to do about it.)
Ultimately, though, it was Grandma that became the old school reporter while grandpa was the business side of small town, linotype, newspaper publishing. Grandma, once in a while, would be picked up regionally and nationally. She had a regualr feature, "Hanging on the Clothesline" that was essentially about what was going on in town. And corresponded with Dale Evans and Nancy Reagan back in the 60's/70's.
Speaking of cultural collapse, the thing that I've found most surprising about watching ours is how little interest people have in it.
Whatever happens to fiat currencies will pass in front of the average person and they will simply accept it.
"Whatever happens to fiat currencies will pass in front of the average person ..."
The average, as well as above and below average American, doesn't have a fu.king clue about what money is.
The only thing that I've ever agreed with Bill Maher, extreme left wing comedian: "Americans are exceptionally people, I.e. Exceptionally stupid"
.
>>>Speaking of cultural collapse, the thing that I've found most surprising about watching ours is how little interest people have in it.
My spin is that, deep deep down inside, a large proportion of the Murcan population knows that the economic and cultural rot-cum-collapse which is moving in on them is something that they deserve.
I can't say they're wrong.
"However, after seeing that QE has not caused inflation or triggered a dollar collapse in the last five years, it is not clear why people would wake up one morning and decide to panic."
Gee, maybe it has to do with the massive capital distortions printing money induces.
I love the "no inflation" mantra that gets so much traction as people have watched their bills increase every year, purchasing power eroded and seeing food prices (among other things) go through the roof the last several years.
Talk about propaganda and utter bullshit.
You forgot -- food and energy don't matter. </sarc>
Funny thing about that. I'm interested in some of the more ancient cereal grains both to know what they were like and to know if I want to grow any of them. Starting from the berries, I ground my own flour using spelt, emmer wheat and some hard red wheat and made some bread. Thus far, I've only tried the spelt bread. It is dense (my fault, but it's good anyway,) with a wonderful delicate flavor. The emmer wheat, by the smell of it, is going to have a very robust flavor, and the wheat was just to compare the other two to a baseline.
Something to take away from this: The spelt was the most expensive at ~$2.50/lb. The hard red winter wheat was under $1.50/lb, and this was at whole paycheck (foods.) If you have the equipment to work with the raw, unprocessed foods, you can still eat fantastic food for cheap.
Now, I need to track down some spelt seed, or see if what I got from the store will germinate;)
Discussion about rising food prices and the fear of inflation are largely overstated. Rising food prices in developing nations can be attributed to the citizens of those nations seeking more sophisticated diets.
- Bernocchio, 2012
@EV
Love spelt. They've not frankenized it. Yet.
Einkorn is another good non-F'd, but very expensive & hard to find.
And if you offer that to a gluten-intolerant person, they will likely have ABSOLUTELY NO BAD REACTION to it. Amazing what non-GMO natural wheat can do for a populace brought up on processed frankenwheat.
Go to a grain elevator and buy wheat. A bushell (60 pounds) would cost you $8 bucks at most.
http://www.chapwoodindex.com/
The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.
Want to live in Orange County? It'll cost you $1,848 a month for an apartment - an all-time average high
http://www.ocregister.com/lansner/rent-671796-percent-month.html
Fortunately, I don't!
$3,458 in SF.
http://www.sfchronicle.com/business/networth/article/Average-S-F-rent-hi...
Scanned Apple Valley, CA. Apartments seem to average about $850. Then you commute to Orange County...It's only 120 miles away.
FWIW average apartment rental in New Zealand nationwide is NZ$1800 per month, which is roughly $1250 in Imperial Dollars.
No inflation? This is very near and dear to me... my wife put a batch of short ribs in a crock pot this morning for our evening dinner.
I told her, "Looks good." She said, "Yeah, but you don't want to know how much it cost." I asked, "How much for the ribs?" She said, "$50."
Now, I'm not exactly Mr. Brady running a household of eight. Two small kids. We're not exactly your typical Texas, Kansas, etc. family that eats 100 cows per year, so the amount of ribs my wife bought wasn't ridiculous.
As I took off for work, I wondered when exactly a short rib dinner became a once-a-month luxury. I can't fathom a median household (~$50k / yr.) affording this even once a month.
"No inflation" = biggest bunch of fuckin' bullshit ever shoveled anywhere on the planet.
Yep, the last time I sent wifey to the market for short ribs she saw the price and brought home chuck ribs instead.
Short rib dinner is now a nonce a month luxury for us.
I am aware that I should keep less of my savings in dollars, lest we have to settle for cat food as a once-a-month luxury. For diversification, I could imagine equal investments in gold, ammo, and renminbi.
$9 smoothies are commonplace in San Francisco; organic and vegan of course. I have the feeling many, many SOMA hipsters are leveraged to the eyebrows here.
Very true. I don't know one single person who has said their cost of living has gone down. All I experience and hear from others is how expensive everything keeps getting. No inflation very well might be the biggest bullshit the US government spews.
They balance that out with declining prices on TVs and computers.
Because everyone buys those all the time /sarc
Myopic BOA Cocksuckers.
I'm not panicking. I am just waiting for the whole system to collapse and then maybe we can all have input when re-building the next system. If not, then it'll just be a continuation of business as usual. It's funny how business is still going on as usual all over the world (in some ways), but not in other ways. A large global system won't really collapse so much as it will just morph into something else based on available resources and changing realities. So I guess I should take a more active opportunist role during this "collapse". Maybe atomic/sub-atomic particles can be the new money. Something real.
The paradigm though...of thin-air, debt-based fiat money has got to go. What will replace it??????
Bartertown
Gramps, born in '21, called grocery shopping 'trading' throughout his whole life. They used eggs, mostly.
Up into the 1970s, my chiropractor father in Peoria, Illinois accepted the occasional payment in tomatoes and farm-fresh eggs.
do not worry, zh, i am writing an epic on the theory of inflation - one pager. Keep an eye on my blog ... meanwhile dish out what you have got..
http://just-a-thought-from-thinair.blogspot.com/
Stop spamming.
you don't understand the meaning of spanmming. zh does! so i know you are not zh. those who have to vite me down .. you can simply ignore me .. there are many who look at my blog .. i don't sell anything
"i don't sell anything"
The shovel you had to buy to spread your bullshit MUST have cost something, though.
Was it a 'government-granted spade'?
YES, Zero Hedge members/contributors/commenters KNOW what SPAMMING is.
The ORIGIN of SPAM:
https://www.youtube.com/watch?v=anwy2MPT5RE
(The obligatory ad at the beginning was 'SPAM', by the way)
Oh: The ZH doesn't understand the difference between 'spammers' and 'TROLLERS', sometimes.
While you are sitting under that bridge, waiting for victims, you might practice the art of 'self-copulation'. It'll come in handy, later.
I would like to see those people save some gold bullion every week.. it may be the only chance they have..
www.teamramgold.com
You too.
I'm pretty sure that the Thanksgiving Turkey also expects to be fed, watered, and sheltered too. Right up until the unexpected and bloody end. And, if the Turkey could reason, it would also be at a loss as to why the farmer woke up one morning and decided to axe it.
What would cause people to panic? Nothing. There is nothing that could happen which money printing and paper gold selling can't fix.
The metal dealers sell for dollars over spot so they don't care. They will sell gold at 259$/oz just the same as they did at 1250$/oz, probably make more money too as it gets cheaper assuming demand actually increases with price desrease. Though such things as basic supply and demand are almost entirely irrelevant in today's 'market'. Even if they stopped all mining operations tomorrow the general public still wouldn't give a shit about gold or silver and funds would still be shorting it.
Gold plated I-Crap, anyone?
Yes and the turkey wakes up day after day being "Fed" by the nice farmer - with no need to worry. He falls asleep with the same sense of well-being that fateful Wednesday night in November...
Suicide party at the dr.s house.
stack bitchez stack that PM
The inevitability renders the reason moot.
B of A must know that panic, by definition, arrives suddenly, as history has demonstrated on a convincing number of occasions. Look no further back than last week, with the Chinese stock market going from buying frenzy to selling panic in a matter of hours. Nobody eased into their panic gradually, a luxury reserved for TBTF banks that have their derivative book insured by the taxpayer.
The dollar will not collapse, so long as the Chinese have their currency pegged to it. They know full well what will happen to their exports if the yuan floats. So, they will buy treasuries forever.
Indeed as long as we're absorbing $500 billion of the world's exports (net), the dollar will be a reserve currency.
Where could they possibly find 300 million people who need a new toaster?
As long as the Chinese maintain absolute control over their populace - by way of Force, they can withstand ~much~ more that is popularly thought here in the West. Which means, if geopolitical issues with the U.S. become acute enough, the Chinese government will have no problem biting the bullet, to Flush the $toilet, so to speak...
They also know full well that the US intends to destroy China and break it into multiple vassal states. Economic harm to their economy is preferrable to the continued existence of a mortal enemy.
Their economy will get better after they destroy the US and break it up into a half dozen or so small weak countries.
Come to think of it, the whole world will be better off when that happens.
Maybe should be asking any trader waking up on one these dates thinking similar:
https://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets
The panic will come when the credit implossion occurs and everybody is scrambling to get 'dollars' that don't exist.
I suppose then, some of you dumb fuckers will learn the difference between 'fiat dollars' and the bankster's ethereal 'debt dollars'.
Yes, but you're talking about 1 of 2 possible scenarios. The other is loss of confidence in the system, which could be brought about by circumtances both inside AND outside the confines or control of U.S. reach.
US debt has doubled in about 8 years. How could it repeat that performance? The average pay has not kept pace with inflation for decades. Interest rates are as low as they can go. Taxes have increased to carry some of the US debt load. Panic city is less than 5 years away, when credit defaults or more QE counterfeiting(I'd say) occurs.
Putting one's wealth in a bank is like donating to a mugger.
Liberty is a demand. Tyranny is submission.
"Citizen!"
"Yes, Liberty?!"
"The reigns of Zion and their banksters will come, and not stop. You, and the world, will be inundated with theft, deceit, tyranny, and squalor."
"What should I do Liberty?"
"Build a guillotine..."
Its always good to have something to do with your spare time.
once the new economics succeeded in burying sound money once and for all,
The obvious marker. This article is written by a Mises Monk.
However, after seeing that QE has not caused inflation or triggered a dollar collapse in the last five years, it is not clear why people would wake up one morning and decide to panic.
Maybe the customers have finally observed the butcher's thumb on the "inflation" scale.
But then again, knowing what we know, WHY WOULDN'T THEY PANIC?
But then again, knowing what we know, WHY WOULDN'T THEY PANIC?
Many of us already have panicked and have taken ourselves out of the game. We know many personally who know the jig is about up but think they can time the collapse with more precision. We know many personally who think they have the inside track and will be taken care of after the reset. And many we know are more into beer, sex, and the Kardashians but know something's not right in Denmark. And then many we know pull the shell over their heads every time we show them the obvious... and call us conspiracy theorists as they have been conditioned to do.
I hope I live long enough to see how this play ends. But I'm running out of time.
it won't be a panic unless the fed raises rates which i consider unlikely. no it will be a steady erosion of capital as people retire and pull out funds to pay for that nonexistent inflation they mention. the fed will step in to prop up markets for the next twenty years which of course will make that nonexistent inflation worse and worse.
If that moron who printed bills in TN figured it out then it's about to go viral.
Long pritt glue, rounded scissors and scotch tape (no offense to my kilted ZH brahs out there ~ What's up Shaz?).
Dear BofA, are you new to the markets or did this letter wrote your fresh new employee from the Bernanke`s school? Market fluctuates, even in the uptrend or downtrend. Thats why people take profit, especially after climax and sometimes new orders dont accommodate that so guess what... shit will crash. Nobody want to see his profit erased in a single day by sudden spike your own HFT bots caused.
His name was TruthinSunshine.
Not yet, chunga. His comments page shows comments, which means he hasn't received the banhammer.
Good, Tyler was showing some thin skin on that one. Maybe TiS is just in the penalty box for a while.
Gotta wonder what the sign up message looks like for all the new members
His recent comments can still be seen at:
http://www.zerohedge.com/search/user_comments?username=TruthInSunshine
I hope he comes back soon.
never mind
For those who don't know. You can say pretty much anything here EXCEPT trashing ZH. I accept those terms and appreciate ZH as it is.
To BoA: We're fed up with the stinking fiat, fake, fraud, fiction, fantasy, fractional-reserve toilet-paper you predators create at zero cost by tapping keyboard keys.
All you do is make yourselves super rich by cheating honest, ethical, productive, benevolent human beings. We've had enough, and we're leaving your predatory system. As more folks come to understand what vicious and diabolical predators you and your co-conspirators are, more will abandon you and your scams. You deserve to be strung up and slowly tortured to death long ago, so consider yourselves extremely lucky.
What DSK tried to do in an orderly manner, preserving at least some power of the $,
http://www.telegraph.co.uk/finance/currency/8316834/International-Monetary-Fund-director-Dominique-Strauss-Kahn-calls-for-new-world-currency.html
but prevented from helping dollar dilution and was quickly disposed of:
https://moraloutrage.wordpress.com/2011/05/20/demise-of-dominique-strauss-kahn-or-the-us-dollar/
and now the adjustment away from USD is happening in a very disorderly and unstoppable for the USD way
getting rid of DSK, well, beware what you wish for
Sounds like a " Message" question from BOA. Some how if you,ve been cognisant of the problems with world finances and central banks over the past decades then you won't be panicing --- you will just simply have reached the point of decisive action. Of course the action must be impuned if it goes contrary to BOA intrests---so by all means marginalize that action (call it a panic)
It's the economy stupid! If QE's do not make the economy grow, then eveyboty will finally understand that all the QE's did not work and a new QE will make people run for the shelters: GOLD & SILVER.
"QE has not caused inflation"
Well SOMETHING HAS FUCKING CAUSED IT - I HAVE IT COMING OUT THE DAMN ASS!!
Depeg first.
10 years ago, a friend of mine moved from the west coast to the east coast. She had a B of A account on the west coast, and thought that moving to the east coast would be no big deal. Those B of A fuckers told her to close her account on the west coast and open one on the east coast. But, the process would take 10 days to close the account, and another 10 days to transfer the money. The were supposed to have integrated the computers from when they absorbed Security Pacific Bank in the 80's, but they still had not done it by 2004. The management is the worst that I could possibly fathom. B of A represents the worst kind of parasite, arguably on par with the vampire squid.
the malevolence of the squid has no equal
>However, after seeing that QE has not caused inflation
Who does their shopping?
Now we know how other countries wake up one morning to find themselves under a dictorship. It like going bankrupt, slowly at first then quite quickly. Coming to your country soon enough. Unfortunately, it's already done, except for the screamin' and yelling.
We all benefited from the bailouts.
I would rather live in Thurnderdome, but generally that’s not the case.
During 2007/2008 216,000 jobs a month were vaporizing. We’d still be in anarchy if not for Bush pushing out the $500.00 American Rebate checks and bailouts.
"We'd still be in anarchy if not for Bush pushing out the $500.00 American Rebate checks and bailouts. /sarc
There, fixed it for you!
'' If the general public watches the gloom and doom videos, loses faith in paper money and dumps it in favor of hard assets the dollar would collapse''
So at least now its 'somewhat' clear why PM's aren't reacting to a unhealthy stock market the way they should...
Translation: if the masses knew what WE know, they SHOULD be panicking!
Duly noted. But most ZH'ers have known what BofA figured out, some time ago.
Of course B of A would say that it would be unpossible for people to wake up one morning in a money panic. So would Bernanke, Yellen, and Thurston Howell, III from Gilligan's Island coz none of them saw it coming when it mattered.
Niether did B of A think they'd wake up insolvent in 2008.
I can descibe America in three words, the same as my buddies homemade bumper sticker. "IT IS OVER."
I'm going to get mocked for it, but i don't think the US will ever experience hyperinflation. Sure we have inflation now, but nothing like Wiemar Republic hyperinflation.
Most cash these days are just bits and bytes. The fed could very easily force the TBTF banks to buy whatever is on their balance sheets sucking up free cash. Amongst other things.
Sure we'd see all sorts of problems arise, most notbly the inability of the Federal government to run its credit card anymore as well as being unable to pay all of those annoying social security obligations.
Without food stamps the country would devolve quickly. This is when i'd expect the police state to go into full swing.
The US would stop paying entitlements long before it gives up its military.
I don't think anyone has a clue how this is all going to shake out. The only thing obvious (to many, anyway) is that it will be a very, very nasty reset.
Wars have been fought for less, empires lost for less. The only thing that really bugs me is that the evil clowns who have set up the fraudulent and hopelessly precarious system out of vanity and greed very rarely are held accountable. It's almost always the rank and file citizens, of every nation, who take it on the chin.
And also, as long as there is a Democrat in the White House, the US will continue to decimate its military and expand its entitlements. Just look at what's happening now.
"Without food stamps, the country would devolve quickly" - well, even with food stamps, we've devolving at a pretty fair pace, I would say.
Kind of agree with you but for this argument
If 99% of the economic activity is the economic activity of the population, any changes in population spending will create big changes in economy = hyperinflation when liquidity is increased. We do not have that, we have a population, just say 10% that influences a very small part of the economy now it does not unlock the hyperinflation door (or the inflation / growth one neither mwhahahahahah!).
So they continue to create the value YOY but they are such fools because this created wealth does not go to the population and the ability of the population to support the economy shrinks even more. Yet they need to create the value YOY just to justify the level of debt SO THEY HAVE TO DO IT!
On that the system is unsustainable, as the economic level of activity of the population ->> 0 reduces the level of debt a sovereign can carry. With no growth sovereigns are then forced to print no matter what so in the end the only economic activity becomes money printing in some form.
THAT IS WHERE I THINK WE ARE ... the tipping point, where we are now told wages are going up REALLY?, interest rate rises soon REALLY?, minimum wage rises to affect the baseline of everything REALLY? All those fiscal tools are attempting to increase values and generate the pretend growth whilst at the same time funny bits of paper are used to hide the true level of indebtedness.
I am seeing businesses fold, not because they are unsound the level of economic activity is far too low and falling and it all arises in the above. The only good thing for people and drives the deflation, is if people can only afford to pay say a dollar for something, if the sovereign says 10 dollars is the price then the downward pressure of having no money is the deflation and it is the same for all.
Countdown 10,9,8,7,6,5,4,3,2,1,1/2,1/4,1/8 ... never get to 0 so it will never happen right although the apparent moving from one fiscal crisis to another seems to be getting shorter.
If you can print half the 5 trillion dollar budget you can print all of it. Governments do not need money, money is simply a tool for the State to extract wealth from people without openly brandishing the gun at them.
Money is only money to the poor (the 99%). To the rich and their State, it is a tool of deceit and enslavement. Those that own the big guns do not need money.
True, but diminishing returns and entropy are real bitches.
" Inflation" is contained.... The stakes are so high The Feds are now selling paper on everything real to justify ZIRP
Selling Fear/ Vix, selling Gold, selling Silver, Selling oil, Selling gas.... The panic starts the minute the rigging fails to remain under the radar, for me that was several years ago!
They eat they shit. So someone buys them food and toilet paper.
FRNS are not money, they are pretend money until they are worthless...
If Printing Money hasn't caused Inflation, hasn't collapsed the Dollar, hasn't made people better off, hasn't really created any jobs, then what's the point.
Apart from making the Rich richer and the Poor Poorer.
Dear BofA,
Please read more Hemingway, specifically:
“How did you go bankrupt?"Two ways. Gradually, then suddenly.”
Sincerely,
Weimar Germany
The breakfast bars that I buy recently HALVED in size. That's 100% inflation! 98% higher than government tells me it is!
In the financial world it is accepted as a given that gold is an antidollar.
Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.
Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.
And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!