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Complacency Reigns At Epic Levels: "Few Are Ready For What Is Coming"
Submitted by Howard Kunstler via Kunstler.com,
Ben Bernanke’s memoir is out and the chatter about it inevitably turns to the sickening moments in September 2008 when “the world economy came very close to collapse.” Easy to say, but how many people know what that means? It’s every bit as opaque as the operations of the Federal Reserve itself.
There were many ugly facets to the problem but they all boiled down to global insolvency — too many promises to pay that could not be met. The promises, of course, were quite hollow. They accumulated over the decades-long process, largely self-organized and emergent, of the so-called global economy arranging itself. All the financial arrangements depended on trust and good faith, especially of the authorities who managed the world’s “reserve currency,” the US dollar.
By the fall of 2008, it was clear that these authorities, in particular the US Federal Reserve, had failed spectacularly in regulating the operations of capital markets. With events such as the collapse of Lehman and the rescue of Fannie Mae and Freddie Mac, it also became clear that much of the collateral ostensibly backing up the US banking system was worthless, especially instruments based on mortgages. Hence, the trust and good faith vested in the issuer of the world’s reserve currency was revealed as worthless.
The great triumph of Ben Bernanke was to engineer a fix that rendered trust and good faith irrelevant. That was largely accomplished, in concert with the executive branch of the government, by failing to prosecute banking crime, in particular the issuance of fraudulent securities built out of worthless mortgages. In effect, Mr. Bernanke (and Barack Obama’s Department of Justice), decided that the rule of law was no longer needed for the system to operate. In fact, the rule of law only hampered it.
Mr. Bernanke now says he “regrets” that nobody went to jail. That’s interesting. More to the point perhaps he might explain why the Federal Reserve and the Securities and Exchange Commission did not make any criminal referrals to the US Attorney General in such cases as, for instance, Goldman Sachs (and others) peddling bonds deliberately constructed to fail, on which they had placed bets favoring that very failure.
There were a great many such cases, explicated in full by people and organizations outside the regulating community. For instance, the Pro Publica news organization did enough investigative reporting on the racket of collateralized debt obligations to send many banking executives to jail. But the authorities turned a blind eye to it, and to the reporting of others, mostly on the web, since the legacy news media just didn’t want to press too hard.
In effect, the rule of law was replaced with a patch of official accounting fraud, starting with the April 2009 move by the Financial Accounting Standards Board involving their Rule 157, which had required banks to report the verifiable mark-to-market value of the collateral they held. It was essentially nullified, allowing the banks to value their collateral at whatever they felt like saying.
Accounting fraud remains at the heart of the fix instituted by Ben Bernanke and the ploy has been copied by authorities throughout the global financial system, including the central banks of China, Japan, and the European Community. That it seemed to work for the past seven years in propping up global finance has given too many people the dangerous conviction that reality is optional in economic relations. The recovery of equity markets from the disturbances of August has apparently convinced the market players that stocks are invincible. Complacency reigns at epic levels. Few are ready for what is coming.
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Kuntsler is one who is obviously NOT ready.
In aviation, they call what the Fed is doing 'pilot-induced oscillation'. Each attempt to fix the consequences of the last intervention is more disasterous than the crisis that caused the prior intervention. We are now in territory where the controls available to the pilot (Fed) are no longer sufficient to restore even temporary stability. The economy teeters in the balance, while the talking heads arrogantly congratulate the worst offenders. Meanwhile. every asset in sight is being financialized as collateral for debt owed to a bank.
In profession of sanitation engineering, what Central Bank is do is call excremental overflow. Keep add little bit, little bit, but basin valve is block so eventually waste is overflow into city street and apartment building next to sewage treatment station is grow toxic black fungus on balcony of resident. Now is frequent cough up dark blood flem and nipple on back is grow itchy and irritation.
"Few Are Ready For What Is Coming"
That is because "few" have the economic means to do a Goddam thing....
Now we wait for the deliberate inverted power dive that will be precipitated by the FED "mistake" interest rate rise or the next prepared false flag.
Long jet packs.
This is reset button? Maybe translation is not so good...?
Accounting fraud remains at the heart of the fix instituted by Ben Bernanke and the ploy has been copied by authorities throughout the global financial system, including the central banks of China, Japan, and the European Community.
A-fucking-MEN!
Good old Rule 157... wonder what they'll use this time for the get out of jail free card
I go by the "Good Old 2-4-69 Rule": I do for you what you do for me. So to speak.
Aka 'Quid Pro Quo'.
Old news. Been covered here is excruciating detail already.
Yes, it's been covered. So what? The reality represented here has not gone away. The consequences have not played out. Fucking ignorant assholes forget at their own peril.
A hyperinflation first and then a depopulating, defationary depression in a vicious deleveraging downward cycle...could be down for 3 years, 3 decades, or ???
There is now joy in what lies ahead.
http://econimica.blogspot.com/2015/10/economicsart-of-deception-vs_20.html
It will be down until the whole Ponzi implodes completely and Nuclear World War Three finishes off what's left.
Only the vertebrates and, probably, the higher molluscs.
Most of the rest should come back in a few decades.
Long gestation and complexity in your biological needs might not be in demand from that type of reset.
People tend to think that anything that goes on for three or four years is normal and so they extrapolate based upon those experiences. Big mistake...
Who knows what is coming. Bottom line, as we've seen countless times over the last few years, when things are about to break, the central banks come in and save the day. It doesn't matter what anyone thinks, the central banks can do something no one else can, they can print money. It's all about perception, as long as most people believe in the central banks, the party will go on. Once that faith is gone, then and only then will it be game over. With everything that's at stake, I believe we're a long way from that happening.
A lot of very smart guys have been getting killed betting against the house. I'm not saying go long or stay long, you just have to pick your spots. This is a great market to trade, so long as you have the ability to quickly change your mind and not get emotionally attached to any particular point of view.
Gartman is that you ???
Except time waits for no one, even mkt traders.
Exactly WHAT/HOW MUCH "traders/investors", govt agents and welfare/"disabled" contribute to tangible productivity/prosperity?
Yawn.
Bernanke when lobbying against prosecuting any banksters in 2009, "I can regret this later, in my book after I retire."
Bernanke thinks an apology will save him from a pitchfork or rope.
The criminals are finished and hey know it. Just a little last minute theft before dashing out the back.
See: Keshe KFSSI Blueprint Teaching on Zoom, Livestream, or YouTube.
Kirk finally wrote a lengthy mass-email to family and old friends (with tons of links), informing them of what's really going on:
Deep State, Fiat Ponzi, FRB, Central Banking, Crony Capitalism, Petrodollar recycling, USD and National Debt, TBTF, TBTJ, Demographic Imperialism and Refugee Warfare, Ne(g)ro fiddling while the New Rome is burning, Chaos out of (old) Order --> New Order out of Chaos, the Reset, NWO, TSHTF, Prepping, Resilient Communities...
Don't care of some of them have their Statist tranquility upset. Being able to look my kids in the eye when they ask me where I was and what I did, is far more important than their approvals or disapprovals. If they label me as the eccentric or crazy cousin, friend or uncle may become a badge of honor. Until TSHTF and they eat humble pie, because that's all they and their unprepared asses will have to eat.
For their sake, I hope that they will start waking up.
apparently it is "crazy" to claim that a minority of immigrants in Sweden have committed a very high % of the suddenly growing number of rapes.
Because, you see, "immigrants" are naught but goodness, sweetness and light, and any accusation against them, must sound only in "hate".
So if you hate that a bunch of immigrants to Sweden, a minority of the total, to be sure, but more than a few, have rewarded their hosts with rape and assaults -why you just "hate" "immigrants".
How can one sensibly deal with this level of unthinking?
More and more, I just avoid discussing anything but football, local restaurants, and the weather.
Because why fucking bother.
+100 for Because why fucking bother. There is a lot of merit in that statement - same as Ricky saying "if nobody else gives a fuck, then why should I?"
To avoid criticism, say nothing, do nothing, be nothing.
BE THE LIGHT. BE THE DIFFERENCE.
Lest everyone else is waiting on someone else. Lead, Follow or get out of the way.
Which (personality type) are you? Guess which personality type Kirk is? ;-) ;-)
kirk is the personality jumping out from the oncoming bus overloaded with migrants holding their dicks ready to rip his white boy ass off himself
my personality type says i'm watching all this from a good vantage point, in higher ground with an array of weapons at my disposal
turn the lights out when your done
Same shit happened to my society 20 years ago when apartheid ended
On the bright side, at least i'm 20 years ahead of Sweden
Fuck the liberals, liberals are fucked
It would appear that the only thing that Liberals are good for, is lots of free Safe Sex.
God forbid that you'd get a Souvenir or Offspring from them! One might kill you, the other will bankrupt you.
well said Kirk,
that is a possibility I hadn't considered .. i'm more terrified of being bankrupted
:p
at least when I'm deead it won't be a problem anymore
hahahaha
Sorry Kirkster.
Most simply can't wake up since it would require them to read and comprehend more than 140 characters at a time.
And as to being labelled the "crazy" cousin ........ badge of honor is about right.
I am resigned to watching the new "multi-polar" world order lurch into view to the accompaniment of mass death kill and the oft repeated wailing of "who could have seen this coming", and much nashing of teeth.
You can't fix stupid.
Hoping your adequately "G'd up" - Grounded-Grouped-Gunned - to deal with the urban-zombie-uprepared when the horde comes a taking. Then there's the personal reckoning actually putting them down.
We know. We have known since "mark to model" started along with the bogus stress tests which ran the models instead of the real data. Why is it different enough to write about it today?
Oh, Bernanke wrote something. Okay.
I strongly suggest the you libertarian and Prepper types have several levels of BOBs (Bugout Bags), with each one having more than the previous one, and with some overlap (fire starter, water filtration...)
1. EDC (Every Day Cary): few basics in your pockets (pants, jacket, manbag)
2. Man-bag, Purse, School/Work-Backpack
3. Day-hike Back, Weekend Backpack
4. Motorcycle, Car or Truck Pack (stuff you always have in the car)
5. Motorcycle, Car or Truck Trailer (bags of stuff you put into vehicle in minutes)
Use Excel tabs for each type of BOB. You may want to have columns to estimate the weight and cost of each line item. You will find that things weigh more than you suspect.
It's easier to compile the list if you use Categories that you populate, as things pop into your head. E.g. Emergency & First Aid, Electronics (Communication, Navigation, www, SW), Fire, Water, Food, Fuel, Tools, Clothes, Shelter, Money, Arms, Games.
That way, you need simply Grab & Go in a matter of seconds or minutes. Think of it as a Keep Calm insurance policy, and fun mental gymnastics -- if nothing else. Make it a sport, to help you relax and remain rational. Think inside and outside the box.
Have fun.
Send me the money and I'll follow your instructions.
I suggest you have a Bible, know the Person it is both about and from and then it does not matter if you live or die, for you have the all the refuge one can obtain and it costs nothing.
Some people will take offense at the idea that they are going to end up dead no matter what life they try to make. They will down vote you for saying that in another way.
Put the bible in one of the bug out bags. Even Christ said "Then said he unto them, But now, he that hath a purse, let him take it, and likewise his scrip: and he that hath no sword, let him sell his garment, and buy one." Luke 22:36
Don't be a sheeple or a simpleton.
Ah yes, the big storybook with the Jew we all should worship. That'll do it!
Grab and go where?
I have not backed down / turned and ran away since I was about 9 years old - even though I ran I still got the shit beat out of me - I was the new kid at school - GET THE NEW KID. Why bother - running will just make me tired.
I am 57 yeats old and if the shit is going to get real I am going to stay put and fight like a Crazyfuckingbastardthathasnoplaceelsetogo.
I may even start a web site
Crazyfuckingbastardthathasnoplaceelsetogo.com
You think your chances will be better out on the highway or being a stranger in some unknown place - then good luck.
I for one would like to thank Bernanke. For waking me up in 2008. For finally once and for and all proving to me that the rules can change for those in charge. So I can live my life these past 7 years afraid of nothing. And to know its all a lie. A fraud. And a con. So Thank You and Fuck You Bernanke. I really do hate you.
Alright, ya got me Howie, what's coming?
The crash of '08 was set up decades before to pillage the system, then pumped up again on the taxpayer dime to collapse it again in the future at a date to be determined. The banks aren't there to loan money, or even make money; they are there to steal money.
The banks are houses hiding thieves. Crooks hiding in plain sight wearing suits and ties, doing blow behind the curtain, fucking hookers and killing third world babies. They are very aware of what they are doing. It draws psychopaths to it, the psychos control it and continue it.
That's why we need to end the Fed, kill the bankers, hang the politicians, and start a revolution.
Buy silver, take all the silver off the market, and when there is a failure to deliver we have the money. That's our hope.
Join the party - Buy Silver
I like the killing of 3rd world babies (sarc); I assume you are saying the US is third world since we are very good at murdering babies.
Agreed. Every government run nation-state is third world now.
Silver? Really? Gonna hunt werewolves and vampires?
I recently attended a big Birthday party of a close friend near Denver. He did a great job with his excess cash by remodelling the entire basement and monster 2-level back deck, rather than sit on shiny metal. All high end stuff:
Bar, pool table & darts area, multi-media room, root cellar, beer & wine cellar and micro-brew system, jacuzzi spa, smoker, grill, water-fall and lily pond. And a killer view from his 7000 foot level spread. Too bad a blackbear sat in the pond one day and ate all the lillies. Oh, and did I mention the antique collection of restored muskets and old British Army rifles (Lee Enfield)? And his 500 foot well won't be contaminated any time soon.
Betcha all these will hold or increase in value a hello of a lot more than manipulated metal. While getting to show off and make use of them at the same time.
What we have here is not so much as a failure to communicate, but a failure of people to use their imagination.
What the fuck are you talking about? Where did I write I want to show off my wealth? I want to take real money away from the banks! I don't give a fuck about bells and whistles. That won't end the banking system. I want to end the banking system and when the shit hits the fan obviously everyone will ask where all the gold and silver is and if we the people have it we can form a better union.
So your smiley friend who has a nice looking house can go fuck himself for all I care.
Hope always ends in failure, and loose lips sink ships.
I've become very complacent - it's ALL bullshit and I don't give a flying fuck anymore.
Here is a quick anti-depressant for you.
https://www.youtube.com/watch?v=BrIPhFWSudA
Shit man. I'm 64 years old. Will they let me sign up again? I can't wait to take some showers with some of them bitches in boot camp.
All right, pussy, pussy, pussy! Come on in pussy lovers! Here at the Titty Twister we're slashing pussy in half! Give us an offer on our vast selection of pussy, this is a pussy blow out! All right, we got white pussy, black pussy, Spanish pussy, yellow pussy, we got hot pussy, cold pussy, we got wet pussy, we got...[sniffs] Chet Pussy: smelly pussy, we got hairy pussy, bloody pussy, we got snappin' pussy, we got silk pussy, velvet pussy, nalga high pussy, we even got horse pussy, dog pussy, chicken pussy! Come on, you want pussy, come on in, pussy lovers! If we don't got it, you don't want it! Come on in, pussy lovers!
https://news.yahoo.com/mexico-man-kills-friend-stop-him-becoming-zombie-...
No matter; no individual escapes THE judgment...thank God for His gifts.
Stop the complacency. Read this.
Here are some signs of a coming recession.
1. Business loans for M&A not CAPEX.
http://www.zerohedge.com/news/2015-10-15/there-goes-final-pillar-us-recovery-loan-growth-paradox-explained
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Fed sees 2 bubbles
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Mikey, you're a self-promoter, but that's OK. There are Far, FAR worse posts on here that get up arrows.
At least you're up front and unpretentious about your (value-add) services. It is the American Way.
I see, you're the ZH Yelp guy.
I'm writing a song right now... like a waltz.
1-2-3, 1-2-3...
"All I can do,
Is all I can do,
Is sing my old songs,
To somebody new"
But I got a writer's block... and now I'm just repeating the same thing over and over to myself.
Somebody wanna help me out here?
Bernanke, just like Greenspan is positioning Itsself for the "pausible deniability" legal cop-out.