The Equation That Explains It All

Tyler Durden's picture

Authored by Mark St.Cyr,

If you were just woken from some form of suspended animation from let’s say 2010 (ancient economic history in today’s terms) then informed of the current state of global political affairs and upheavals, U.S. employment (95+million not,) global currency gyrations, interest rates at not only 0% but some -0%, threats of escalating wars, threats of major confrontational war, GDP of the major global economies not only contracting, but below statistical stagnant, governments, as well as central banks with balance sheets of debt calculated in $TRILLIONS, some in the 10’s of, all financed at near or below 0%, and the Fed is only about a week away from raising rates into the teeth of what can only be called “uncertainty,” and much, much more. (There isn’t enough time, or digital ink to list them all.)

Nobody would be surprised if your first reaction based on your prior acumen (the ancient history of 7 years ago whether it be in stocks, business, or both) would to become immediately concerned that whatever portfolio, or wealth you may have had in the markets, may be worth far less today than when you were first put to sleep. And probably becoming ever smaller as you thought about what you might need to do next in order to preserve any that may be left.

That is, till someone explained to you the markets you went to sleep knowing of – are no longer – and the reality of the markets today you could never have dreamed up. Even if they let you sleep another decade or longer.

Today, the markets you once knew of are better described as the “markets.”

To clear up any confusion as to how, or why, the “markets” can now be at “never before seen in the history of mankind highs” once again after the resounding “NO” vote in Italy, where the entire E.U. experiment is now seriously undermined, and falling apart in real-time (Brexit first, Italy will surely now vote next, etc., etc,) below is the calculation that explains it all.

For under the rules of: If A = B and B = C, then A = C, you now have the magical formula to understand with Einstein like surety today’s ‘markets.”

If you have any doubt to the soundness of this expression, consider the following:

If a financial crisis appears (A) The central banks will intervene (B)

 

If the central banks intervene (B) The “markets” go up (C)

 

Thus, we need more financial chaos (A) To make even more all time “market” highs (C)

That is what “the greatest expression of capital formation the world has ever seen” has devolved into.

I’ve now come to the conclusion that even the term “casino” may no long fit. For these “markets” are no longer working on anything based on statistical math or economic expressions. Or, anything else related to understandable business metrics such as: a company’s value is based on net profits or any such thing.

No, there’s only one word for it now as to explain just how beholden it is to adhering, and repeating the above calculus. And it just so has it, Einstein said it best:

“Insanity.”

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mary mary's picture

The denominator is 0.5.

mofreedom's picture

A and B meet to help C knowing they are raping D.

stocker84's picture

No longer stuck on zero, I presume?

;-)

 

FOR THE OTHERS...

Answer to the Ultimate Question of Life, the Universe, and Everything 

 

.....a group of hyper-intelligent pan-dimensional beings demand to learn the Answer to the Ultimate Question of Life, The Universe, and Everything from the supercomputer, Deep Thought, specially built for this purpose. It takes Deep Thought 7½ million years to compute and check the answer, which turns out to be....

https://www.google.com/search?q=the+answer+to+everything+in+the+universe

 

https://upload.wikimedia.org/wikipedia/commons/thumb/6/63/Simple_Magic_C...

Alogon's picture

Alternativey the answer is Genisis 42

It starts here, but the point is made at 47

  There was no food, however, in the whole region because the famine was severe; both Egypt and Canaan wasted away because of the famine.  Joseph collected all the money that was to be found in Egypt and Canaan in payment for the grain they were buying, and he brought it to Pharaoh’s palace.  When the money of the people of Egypt and Canaan was gone, all Egypt came to Joseph and said, “Give us food. Why should we die before your eyes? Our money is all gone.”

  “Then bring your livestock,” said Joseph. “I will sell you food in exchange for your livestock, since your money is gone.”  So they brought their livestock to Joseph, and he gave them food in exchange for their horses, their sheep and goats, their cattle and donkeys. And he brought them through that year with food in exchange for all their livestock.

  When that year was over, they came to him the following year and said, “We cannot hide from our lord the fact that since our money is gone and our livestock belongs to you, there is nothing left for our lord except our bodies and our land.  Why should we perish before your eyes—we and our land as well? Buy us and our land in exchange for food, and we with our land will be in bondage to Pharaoh. Give us seed so that we may live and not die, and that the land may not become desolate.”

  So Joseph bought all the land in Egypt for Pharaoh. The Egyptians, one and all, sold their fields, because the famine was too severe for them. The land became Pharaoh’s, and Joseph reduced the people to servitude, from one end of Egypt to the other. However, he did not buy the land of the priests, because they received a regular allotment from Pharaoh and had food enough from the allotment Pharaoh gave them. That is why they did not sell their land.

  Joseph said to the people, “Now that I have bought you and your land today for Pharaoh, here is seed for you so you can plant the ground.  But when the crop comes in, give a fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your children.”

  “You have saved our lives,” they said. “May we find favor in the eyes of our lord; we will be in bondage to Pharaoh.”

  So Joseph established it as a law concerning land in Egypt—still in force today—that a fifth of the produce belongs to Pharaoh.

It was only the land of the priests that did not become Pharaoh’s.

You have just left the Asylum..Wonko the Sane

mary mary's picture

Indeed, that is among the most important history lessons.

bobbbny's picture

Gimme odds behind the line, come, and all the hard ways.

max_leering's picture

if you like your insanity, you can keep your insanity

RiverRoad's picture

The Fed wil raise interest rates by .00000000038%.  And that's FINAL!!

stocker84's picture

That isn't entirely true for everybody.

I  lost my insanity.

 

I think the saying is, "If you want to keep your sanity, you can keep your sanity."

See what I did there?

Don Sunset's picture

Give them credit for extending the PONZI as far as they have.

What's been done to the markets is irreversible.

The markets have lost all trust because at any second the central bankers can do what they want.  No future law can change this possibility.

The system and its governing bodies are in a process of winding down although their efforts could be in early stages of ramping up.

Arnold's picture

Oh, it's all completely reversible.

That is the basis of much our preparation and cynicism...

You are not going to like the path back down the mountain.

 

stocker84's picture

The truth is, the rug WILL get pulled.

Nobody knows when, and timing is everything!

Everything.

 

I'm no longer playing musical chairs.

 

The crash is inevitable...they can sustain this until they no longer can.

Buy the dips will still be in play...in both directions....but buying the dips is much more dangerous on the way down.(falling knife catch.)

Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

 

daveO's picture

The slaloms are always fun!

Squid Viscous's picture

Insanity is defined as shorting anything until Drumpf's inauguration, if he's still alive

asteroids's picture

No, it's still a casino, have no doubt of that. The problem is that the games are rigged. The house edge is at least 3%/yr. The FED says so. But, if you don't go and starve the bastards, then (hopefully) it'll stop being a casino and actually be a "market" of stawks.

Brazen Heist's picture

This transitivity relation breaks down due to black swans and human error.

Central banks are not infallible.

moonmac's picture

I could easily go around putting labels on everyone. The Nordstom-Von Maur Class of Americans gets an “NV” tag and the Goodwill-Dollar Store Class gets a “GD” tag. I’d be 100% accurate with just a quick look at folks because our country has never been more divided economically.

RALLY ON SHYSTERS!!!

sgt_doom's picture

The answer is still 42.

 

Seriously, though, I just caught a brief piece on Fake News (this time, CNN), and it was super-loser former CIA joke, Philip Mudd (see bio web page below --- he brags about it) and I just couldn't help spacing out and thinking:

We've learned all this stuff over the the past many months and years from WikiLeaks:  Cost = 0

We've learned exactly ZERO from the CIA:  Cost = wasted billions and billions and billions of dollars.

STFU, loser Mudd and CNN!

http://www.philmudd.com/bio.html

Mr. Mudd went on to manage Iraq analysis at the CIA (1999-2001). 

Mr. Mudd began a policy assignment at the White House in early 2001, detailed from CIA to serve as the Director for Gulf Affairs on the White House National Security Council.  He left after the September 11 attacks for a short assignment as the CIA member of the small diplomatic team that helped piece together a new government for Afghanistan, and he returned to CIA in early 2002 to become second-in-charge of counterterrorism analysis in the Counterterrorist Center.  He was promoted to the position of Deputy Director of the Center in 2003 and served there until 2005.

Possible Impact's picture

20 - 20 = 0
25 - 25 = 0
20 - 20 = 25 - 25
4 x (5 - 5) = 5 x (5 - 5)
4 = 5
2 x 2 = 5

Alananda's picture

ZERO credit -- though good try, Common Core graduate!

(Note:  I do not give any credit for BS.)

 

4 x 0 = 5 x 0  [true]

0 = 0 [undefined Truth]

2 + 2 = 5 [also true, in your Universe]

Possible Impact's picture

My equation shows the Markets are simply "Smoke and Mirrors"...

hannah's picture

if hillary's colostomy bag has 5lbs of shit and she shits 1lb every 30 minutes.... how many women has bill fucked...?

stustd's picture

5-5 = 0. Division by 0 is indeterminate so the buck stops mathematician/logician-ly at eq 3. After that all reasoning is flawed/false and unfortunately most people just swallow it (be it most often 'in words' instead of numbers) because they've missed what happened moving from eq. 3 to 4. Add some statistical decoration and the flaw induction machine works even more deceivingly.

spastic_colon's picture

^^^^^This.......as you mentioned most people will miss what he/she did between equations 4 and 5

Possible Impact's picture

You think that's bad, you should see the map I made.
Tried to mark the location where the boat was swamped.
(Never could find those gold coins on the lake bottom...)

Korprit_Phlunkie's picture

Janet Yellen? Alan Greenspan? Is that you?

wildbad's picture

4 x (5 - 5) = 5 x (5 - 5)

= div by zero...no go in this universe

Seasmoke's picture

I'm just glad Tyler cancelled CAPTCHA.

Vlad the Inhaler's picture

The real equation is the risk free rate of return vs what investors are getting in the stock market. When Trumpflation sends those interest rates a little higher, "sanity" will return to the market pretty quick.

bluto bicep's picture

Nice article.  It echoes the problems of relativism (not relativity), which is the grip on society that is actually behind the whole philosophical mess.  The opposite of relativism - the idea that there can be multiple truths - is absolutism.  The classical theory of antithesis states that if A is A, it's opposite must be non-A.  If somehting is true, it's opposite must be false.  Relativism embraces the absurdity of the modern world, or vice-versa.

Up until around 1870 in Europe and the critical date of 1913 in the USA, absolutism held sway.  No one expected the government to take care of them, and your word was your bond.  After those dates, Kierkegaard, Hegel and Kant created a philosophical world based on the false premise of relativism, followed by art, music, politics and finally finance.  The Federal Reserve and the Rothschild banks are a Ponzi scheme to transfer the world's wealth into the hands of less than 1%.  All Ponzi schemes collapse.  To rely on a Ponzi scheme with a long record of financial malfeasance to "regulate" the markets is a shining example of the insanity of relativity.

This country (USA) is dominated by relativistic thinking - around 90% of the population, I would say.  I cannot commuicate with these people as there is no mutually agreed-upon understanding of what truth even is.  There is no common ground at the critical level.  They will be stunned when the collapse happens and they get the Cyprus treatment.  It is their reward in full for their inability to deal with reality.

Oh - and Einstein was a fraud, btw.

gunsnmoney's picture

"In theory there is no difference between theory and practice. In practice there is." - Yogi Berra 

bluto bicep's picture

The one and only.  The master of the paradoxical quip.

Clowns on Acid's picture

Yup. He was just an ugly nerd trying to get laid. Indeed his theory of Relativism had something to do with the speed needed to create the distance between himself and a thrown bottle after telling her that he was not seeing her again. 

you know they are lying because they are talking's picture

“oh - and Einstein was a fraud, btw”

 

I am curious as to what your education is. Are you a scientist? Where did you go to college? It’s a shame our schools are more interested in teaching nonsense than math or science. We as a society are way behind other countries in these fields. And the sad part is some people, like you, are proud of your ignorance, and enjoy the ability to provoke others knowing full well that you are the only one who can look for the truth, it cannot be forced onto you.

 

He made predictions based upon science. Most of what he “theorized” could not be proven at the time. There was no equipment designed to prove or disprove him. Over the years many of the things he “theorized” have been proven to be true. Time does indeed slow down near the speed of light. Gravity does indeed bend light. And “black holes” do exist. There is much evidence to support this; evidence and truth that is available all over the internet if you only cared to look. True, others would have thought of these things eventually. But he was the first. Many, many of the technological inventions we now have, were based upon his “theories” He made predictions that were well ahead of everyone. Even now, 99.9% of people cannot grasp some of the concepts he predicted over 1oo years ago.

 

You remind me of the college students who deface Washington and Jefferson monuments because the students think these great men did things that seem horrific and wrong to them. But their feeble minds cannot grasp that these two great presidents lived in a different world than ours. It is like our youth only want to find fault, and can never acknowledge that others before us may have not been perfect, but none of us are. It is so much easier to find fault with others than to admit they are smarter than we are.

 

That’s what you remind me of. No better than the snowflakes defacing the Jefferson statue, you want to denigrate a genius. Do you think Pythagoras was wrong too? (He predicted the earth was round.)

 

I just cannot let the nonsense you are spouting go without at least some reply. I am not smart enough to really be the correct person to defend Einstein, but please reply with what exactly you think he was wrong about, and I will try to defend him. And yes, he was wrong on a few things; that probably makes you feel better about yourself.

 

Elco the Constitutionalist's picture

The frightening part is that he got 10 people to agree with his pseudo-intellectual nonsense.

bluto bicep's picture

Look into Mileva Mari?.  I was greatly amused by your ability to create a full personailty profile on me based on a single comment about the great Einstein.  He was no kind and gentle genius, either.  There are plenty of bios out there on his brutal treatment of women, especially his wives.  He was a self-promoter on the level of PT Barnum.

I have a degree in painting from the Kansas City Art Instittute.

you know they are lying because they are talking's picture

I took a quick look at Mileva Mari on the internet. Am I missing something? What is your point?

They were married, and some "speculate" she may have helped Einstein with some of his ideas. As husband and wife, I would think it would go without saying that she probably had some input.

So your point seems to be that every scientist that was ever married should have given credit to their wives in the final result? In other words nearly every invention or idea should have two names on it?

Actually, I kinda like that idea. But that doesn't make Einstein any less worthy of any other inventor or scientist.

I don't know what kind of art you make. But be sure to put your spouses name on it as well as your own.

Also, both of them had mental issues, so it should be no surprise they had marital issues. It was hardly all his fault.

 

Grandad Grumps's picture

Unfortunately half of the real answer is: what is the connection between Eusebius and the CIA?

The other half of the question is: who really controls the connecting ligament and why?

There has been so much distraction and so much misdirection that without understanding the critical link it is totally understandable to be headed down the wrong rabbit hole.

I just wish this revelation did not affect my family and me so personally.

south40_dreams's picture

Liberal logic goes something like 2+2=642

Salzburg1756's picture

I went insane in 2006; since then it has all made perfect sense to me.

What is the problem with you guys?

Youri Carma's picture

Einstein obviously knew a lot more about 'Insanity' than he knew about physics because Einstein was dead wrong so black holes don't exist except for in economics! Which makes it more insane than the Universe.

you know they are lying because they are talking's picture

I am curious as to what your education is. Are you a scientist? Where did you go to college? It’s a shame our schools are more interested in teaching nonsense than math or science. We as a society are way behind other countries in these fields. And the sad part is some people, like you, are proud of your ignorance, and enjoy the ability to provoke others knowing full well that you are the only one who can look for the truth, it cannot be forced onto you.

 

He made predictions based upon science. Most of what he “theorized” could not be proven at the time. There was no equipment designed to prove or disprove him. Over the years many of the things he “theorized” have been proven to be true. Time does indeed slow down near the speed of light. Gravity does indeed bend light. And “black holes” do exist. There is much evidence to support this; evidence and truth that is available all over the internet if you only cared to look. True, others would have thought of these things eventually. But he was the first. Many, many of the technological inventions we now have, were based upon his “theories” He made predictions that were well ahead of everyone. Even now, 99.9% of people cannot grasp some of the concepts he predicted over 1oo years ago.

 

You remind me of the college students who deface Washington and Jefferson monuments because the students think these great men did things that seem horrific and wrong to them. But their feeble minds cannot grasp that these two great presidents lived in a different world than ours. It is like our youth only want to find fault, and can never acknowledge that others before us may have not been perfect, but none of us are. It is so much easier to find fault with others than to admit they are smarter than we are.

 

That’s what you remind me of. No better than the snowflakes defacing the Jefferson statue, you want to denigrate a genius. Do you think Pythagoras was wrong too? (He predicted the earth was round.)

 

I just cannot let the nonsense you are spouting go without at least some reply. I am not smart enough to really be the correct person to defend Einstein, but please reply with what exactly you think he was wrong about, and I will try to defend him. And yes, he was wrong on a few things; that probably makes you feel better about yourself.

 

JustPrintMoreDuh's picture

6-3 = purple.  Idiot.

stocker84's picture

6-3 = Thursday. Purple...HA!

You must have gone to one of those liberal universities.

Korprit_Phlunkie's picture

6-3 = rainbow flag. It is not fair that there is no diversity in your answers. Probably white male Christians.

True Blue's picture

If purple is halfway between Thursday and potato...she must be made of wood, so.... let's see if she weighs the same as a duck and burn her?