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Art Cashin Exposes The Behind The Scenes Panic In Europe

Tyler Durden's picture




 

Think "all is fine" in Europe after today's largely irrelevant Italian bill auction (the auction was for 6 month debt - even Greece can raise that kind of money)? Think again. Here is the Fermentation Committee Chairman explaining why Europe is so hard pressed to create a fake sense of calm, allowing those who know the real story to take advantage of the situation while they still can, and sharing the behind the scenes truth you won't get anywhere else. Certainly not SWIFT. 

From UBS:

Europe Rumbles Continue Beneath More Upbeat Headlines - Ever since last week’s liquidity operation, most headlines out of Europe have leaned toward the reassuring side. Beneath those headlines, however, there are signs the strains remain and may, in fact, be growing.

 

European banks are making great use of the ECB’s overnight deposit facility. Last night they parked $590 billion at the ECB breaking the record they had set the night before. They are clearly unwilling to lend to other European banks, highlighting the distrust and fear in the interbank marketplace. While the ECB’s lending initiative calmed the markets somewhat, it apparently has done nothing to free up the logjam blocking interbank lending.

 

The distrust on the streets is said to be growing also. Barroom gossip says that safe-deposit boxes are in a demand that borders on frenzy. They allow you to take your Euros and covert them into something of value (gold, Swiss Francs, etc.) and sock it away in a safe place.

 

Others are said to be buying property in London and elsewhere lest you awake one day and discover that your Euros have reverted to drachmas or lira.

 

Savvy bankers are said to be setting up personal and communal trusts domiciled in places like the Bahamas, the Caymans or the Isle of Jersey. Some banks are offering depository accounts denominated (and repayable) in alternate currencies like the dollar or the yen.

 

We think a Lehman-like event would most likely be triggered by a run on a bank or a series of banks. The scramble for currency (value) protection among the public could turn into that bank run in the same way that a crowd can instantly turn into a mob. Watch the money flows out of Greece and Italy very carefully. The pot continues to bubble

 

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Wed, 12/28/2011 - 10:28 | 2015797 SheepDog-One
SheepDog-One's picture

Safe deposit boxes are a 'safe place' to buy some gold and sock it away? Think again, Europe.

Wed, 12/28/2011 - 10:34 | 2015814 spiral_eyes
spiral_eyes's picture

Physical, bitchez.

Wed, 12/28/2011 - 10:51 | 2015842 Popo
Popo's picture

What isn't confiscated will be taxed on sales and tariffed on export.

You're going to have to think more creatively than just "Physical, bitchez".   The forces of monetary oppression are damn good at what they do.  It's not going to be as easy or as obvious as just holding physical.  Value can be (and will be) extracted from your physical with one stroke of tax legislation.

Then you're going to be in a position where the only way to realize the value of your physical is to become a smuggler.   And they'll put a penalty on tarriff evasion that makes you think twice...

Wed, 12/28/2011 - 10:57 | 2015881 Hansel
Hansel's picture

Gold profits are already taxed at 28% in the U.S.  We are there.

Wed, 12/28/2011 - 11:19 | 2015969 beaker
beaker's picture

We're not there yet.  There is still room for the remaining 72% to go.   ...Or just announce that it is being considered.  Game, set, match.

Wed, 12/28/2011 - 13:14 | 2016475 Hard1
Hard1's picture

Aren't you supposed to only say Miiiiiii beaker?

http://www.youtube.com/watch?v=vAomKAMN2Pw&feature=related

 

Wed, 12/28/2011 - 11:24 | 2015992 RoadKill
RoadKill's picture

Huh? Why 28%?

Shouldn't it be taxed as either marginal income (35%) or capital gains (15%) is their really a special tax bracket for Gold?

I'd support taxing it as income. We have a lower tax on capital gains because savings and investing in companies supports economic growth. Buying and hoarding gold doesn't do anything to help the economy.

Wed, 12/28/2011 - 11:36 | 2016049 beaker
beaker's picture

I know this makes too much sense (so it will never happen) but why not do a 1031-like exchange into a qualified new company investment?

Wed, 12/28/2011 - 12:18 | 2016257 DeadFred
DeadFred's picture

Off topic for the thread but on topic for the article-

"Watch the money flows out of Greece and Italy very carefully"

Where does one find such a useful bit of info on a timely basis? It boggles my mind that 'they' would let such a number out in a non "seasonally adjusted" form. Do they think the sheep should be allowed to see real data???

Wed, 12/28/2011 - 13:37 | 2016598 JLee2027
JLee2027's picture

True.

And who cares about taxes in a massive financial panic for survival?  A increase %Tax on Euros/Dollars for example is kind of silly when you are holding Gold and Silver, which is in fact, money.

 

Wed, 12/28/2011 - 12:11 | 2016215 sosoome
sosoome's picture

We really have to stop thinking in terms of rearranging deck chairs. The feds have no business taxing the people period, as per original intent. Let the feds tax the states and re-instate State representation in congress.

Wed, 12/28/2011 - 12:31 | 2016315 Old Poor Richard
Old Poor Richard's picture

You can't gain anything by sitting in gold because it has 0% appreciation, and you don't "profit" when you sell gold, you merely illustrate the depreciation of your currency.  To tax it is simply an "add insult to injury" exercise.  There shouldn't be any tax on gold at all because the variation in its fiat exchange rate isn't income. 

 

Wed, 12/28/2011 - 13:28 | 2016556 Fred Hayek
Fred Hayek's picture

But if the price has been artificially manipulated downward by the government and its handmaidens, the too big to jail banks, then when it goes to its true value you will gain all that appreciation which had been simply delayed in time by the gov't's manipulating.

If it should be, say, $8,000 an ounce now but is kept at a fraction of that, then when it rises to $8,000 (or more) in the future, the gov't will have given you that $1600 to $8000 increase by having artificially kept the price lower now.

 

Wed, 12/28/2011 - 15:02 | 2016849 dizzyfingers
dizzyfingers's picture

Isn't the government really the handmaiden to the banks? The one with the money has the power. "Government" is elected or apointed. They don't have the power of the banks.

Wed, 12/28/2011 - 13:34 | 2016585 VegasRage
VegasRage's picture

You need to seriously read up on PM's

Wed, 12/28/2011 - 14:13 | 2016689 pods
pods's picture

He is correct.  Gold does not change. The only thing that changes is the value of the currency you are pricing it in.

And if you "tax" that difference, it is not income. Essentially it is a double tax, as you are paying the tax of inflation of the currency already.

pods

Wed, 12/28/2011 - 19:26 | 2017511 Sockethead
Sockethead's picture

I agree that over the long term the "value" of gold remains constant.  But in the short term the value of gold changes even relative to fiat currency.  Over the past 10 years, the price of gold has risen more than the actual inflation of the dollar.

This is due to the fact there is now a lot of fear out there and a greater demand for a hedge against market risks and future inflation.  This makes an ounce of gold more "valuable" now than it was 10 years ago.

In any case, taxing a dollar gain when selling gold is just plain wrong.

Wed, 12/28/2011 - 12:41 | 2016346 Raymond_K_Hessel
Raymond_K_Hessel's picture

Huh? Why 28%?

Shouldn't it be taxed as either marginal income (35%) or capital gains (15%) is their really a special tax bracket for Gold?

Actually, there is a special tax bracket for precious metals. The IRS considers them collectibles. Thus, they never qualify for LTCG. They are either taxed as STCG or at the collectible rate, which I believe is 28%. You can purchase pm in an ira, which, from a tax perspective is the best choice. Nevada just eliminated state taxes for pm.

Wed, 12/28/2011 - 13:40 | 2016603 JLee2027
JLee2027's picture

And the Constitution calls precious metals money. Which is correct?

 

Article 1, Section 10

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;

Wed, 12/28/2011 - 15:04 | 2016860 dizzyfingers
dizzyfingers's picture

Are only minted coins collectibles, or all forms (bars, blanks, etc.)?

Wed, 12/28/2011 - 18:59 | 2017442 S.N.A.F.U.
S.N.A.F.U.'s picture

From the 1040 Schedule D instructions:

"Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property."

Wed, 12/28/2011 - 11:26 | 2016007 Hueco Kid
Hueco Kid's picture

Got to love paying phantom capital gains on devalued dollars.  Buy gold - have the dollar lose half it's value then pay taxes on your "gains"

 

Hueco Kid

Wed, 12/28/2011 - 12:22 | 2016277 CuriousPasserby
CuriousPasserby's picture

I heard that if you buy or sell at a coin show for cash the transaction is tax exempt. At least then never ask for my tax number as long as it is less than $10,000 cash.

Wed, 12/28/2011 - 12:46 | 2016350 Old Poor Richard
Old Poor Richard's picture

It's exempt from reporting but not exempt from tax.  Meaning you're required by law to self-report and pay tax on your [non-existent] appreciation in gold, pay tax on the depreciation of fiat FRNs. 

Banks are only required to report transactions over $10,000 but they report everything anyway as a favor to the authorities so Big Brother can track your finances. 

This is a fortunate "loophole" in that sellers at shows can still operate strictly by law allowing you to keep private those sub-$10K transactions, just like the gun show "loophole" which allows you to buy a firearm without government tracking you.

I predict both these "loopholes" will be closed by Dictator Obama or Dictator Whoever(R) after the next election.

 

Wed, 12/28/2011 - 11:19 | 2015967 Toolshed
Toolshed's picture

Unfortunately, you are correct. The odds that the US government will repeat 1933 and confiscate your gold are about 100%. I think they WON'T confiscate other pm's for various reasons, but you can kiss your physical gold goodbye. But don't fret.......they will give you some very pretty paper in exchange for it. Guns and ammo, if you can get them, are almost certainly a better investment at this point. Very sad indeed.

Wed, 12/28/2011 - 11:51 | 2016125 Karlus
Karlus's picture

If they take the gold, then having the others becomes meaningless:

1) Means the govt has standardized on gold then other PM are not worthwhile. I doubt we will have bi-metallic money standard

2) Means if they take gold because it has value then they can seize the other PM if they become too valueable, and people will flee them as a store of value

3) You can say that guna/bullets will become the new money, but I suspect that if they pass some sort of confiscation it will be wrapped in "anti-hoarding" verbiage that excludes having too much of any thing for the common good.

PS, I dont believe in confiscation as strong money policy hurts govt ability to print money. There simply is no advantage for them to have a gold standard

Wed, 12/28/2011 - 13:36 | 2016594 Fred Hayek
Fred Hayek's picture

The thing is, in 1933, average americans understood the value of gold.  They had skepticism about paper money.  Ownership of gold was pretty widespread.  Confiscating gold then meant taking it from a whole lot of the 99%. 

Now, outside of odd places like this, understanding of the value of gold and silver is far from widespread.  Skepticism about paper money involves a conceptual leap that is like Bob Beamon x 2 for most of the populace.  Ownership of gold outside of the 1% is not widespread.  So, confiscating gold now will mean mostly picking on the 1% who can influence the levers of power.

It's hard to picture them sitting there and allowing the stored value of their wealth to be taken away while leaving the sheeple unscathed.

Wed, 12/28/2011 - 16:35 | 2017109 greenEagles
greenEagles's picture

Another thing to keep in mind is that making gold illegal to own a la the "confiscation" of 1933 is not enough to get people to give it up.  The amount of pre-1933 gold eagles in existance is proof of this as the gov melted down the coins they were able to take from private hands.  The price they offer is everything.  The price they would have to offer today in paper to get gold holders to let go would be imensely higher than current market prices.  Also, if they are "confiscating" gold that would mean re-monitization, so the paper they are exchanging would likely have some type of gold backing.  All and all, I think gold remains a far better investment than guns and ammo.

Wed, 12/28/2011 - 17:27 | 2017240 Iam_Silverman
Iam_Silverman's picture

"All and all, I think gold remains a far better investment than guns and ammo."

I agree totally.  Oh, can I come over and help you count your Eagles?  I PROMISE to come unarmed.  Really.

 

?Plata o Plomo?

Wed, 12/28/2011 - 11:20 | 2015973 toothpicker
toothpicker's picture

As opposed to paper stuff you mean?

Wed, 12/28/2011 - 12:14 | 2016227 Winston Smith 2009
Winston Smith 2009's picture

Confiscation isn't necessary in a credit collapse for gold to not be a safe haven.  Here's why:

Forum post by Karl Denninger at his blog:

http://market-ticker.org/akcs-www?post=199758&page=3

The entirety of the commodity complex prices on the use of CREDIT, which you claim (correctly) is the problem. Yet your (gold) price is determined by a levered instrument running at 10:1 or more gearing. When that credit disappears pricing will contract, perhaps by as much as 90%. All "things" in the economy that price off a credit instrument will fall in nominal price.

In other words your thesis of advancement (or even simple holds) in commodity prices are dependent on ever-expanding credit.

This goes beyond logical inconsistency and well into the realm of willful blindness, and the continued insistence that physical metal will "decouple" from those levered instruments and skyrocket while the levered instrument will not move has been run since I became aware of the financial markets more than 30 years ago and has been wrong every single year since.

Wed, 12/28/2011 - 12:46 | 2016360 oddjob
oddjob's picture

Willful blindness is not mentioning that roadkill he calls a toupee.

Wed, 12/28/2011 - 13:45 | 2016615 JLee2027
JLee2027's picture

I was going to say his teeth need some work as well.

Wed, 12/28/2011 - 13:20 | 2016410 Popo
Popo's picture

Denninger's biggest failing is that he believes in absolutes.   Denninger frequently talks in terms of 'mathematical certainty', 'absolute facts' and 'black-letter law'.   It makes for compelling reading for anyone easily convinced by sheer pundit confidence (and full disclosure: I am a regular reader, and enjoy his stuff -- but I take it with a boulder-sized grain of salt). The problem is that mathematics when it comes to the world of cooked-books, creative accounting, two-tier legal systems,  mutable laws, military intervention, installed governments, under-the-table deals  and comfortable lies is not an absolute.   The law, when it comes to sovereign states,  corporations and members of the banking elite -- is never 'black letter'.    And when that so-called mathematical 'certainty' of our collapse is always a year or two off -- it makes Denninger's 'certitude', somewhat less 'certain'.

Denninger's fans are typically those who are desperate for a 'clear vision' in a marketplace where (as any reader of ZH knows) clarity is not easy to come by.    His claims of absolutism make for a very successful blogging-strategy:  Paint a picture of the financial markets in which there are rigid laws of nature -- where things will and must happen due to immutable laws of the universe,  and those desperate for vision will come flocking.   (As an aside: One can't help but note that the man is also religious).   To defend his absolutes,  Denninger has a zero tolerance policy against any who challenge his prescribed group-think.   You'll be banned if you question the dogma.   The result is an echo chamber of forum members who repeat Denninger's prophecies as if there are no alternatives.  But of course -- there are.

The above example you give, Winston -- is just one example.   It's not a bad example.  In fact, it may well play out exactly as KD says it will.

But it also might not.       ( I rarely think KD is flat wrong.  He's a very sharp guy.   But his certainty is deeply misplaced.  And his track record shows it).

I can think of a dozen ways in which the ponzi of paper gold collapses well before the ponzi of overall credit collapses.   But don't dare say that on Ticker Forum.   The overlord does not tolerate individual thought.

I happen to agree with him that deflation is in the cards.  But the notion that something "Can't happen" is not only a sign of mental rigidity -- but it's also where KD frequently stumbles over empiricism. 

Wed, 12/28/2011 - 13:33 | 2016581 RockyRacoon
RockyRacoon's picture

Good stuff, Popo. I've made the same point in the past about KD.  He sees things too linearly and allows for no deviation from his strict dogma.   He gets all sweaty when the Washington crowd or the the Bankster Boys don't follow the script.  That's ok, as you say, as far as it goes, but allows for a vulnerable blindside that can't account for fluctuations in the energy field.  He's gonna get black-swaned into a state that will send him straight to the padded room.  His followers will be left standing naked in the midst of a swirling market meltdown with no mentor.   Lemmings of a different color.

Wed, 12/28/2011 - 16:19 | 2017064 ebear
ebear's picture

His anal fixation is a dead giveaway.  Eveything's a**-raped this, and butt-f**ked that, but he never spells it out.  It's all little stars so you have to fill in the bad letters yourself.  Infantile really.  About what you'd expect from a third grade catholic school boy.  

Wed, 12/28/2011 - 18:15 | 2017340 Harrison
Harrison's picture

I'd say Denninger has an even bigger failing than that: his absolute inability to admit when he's been wrong. He's failed at just about every significant prediction since the end of 2008. The day Bernanke announced the first QE program, Denninger was posting right up until the announcement that "Bernanke won't QE because it will destroy the dollar." When Bernanke made the announcement, Denninger posted a single-word comment: "Fuck." Yet every time a new QE is about to come out, Denninger confidently predicts it won't happen again.

The first year or so of his forum, he repeatedly threatened to shut it down if people didn't stop discussing whether we were going to have stagflation or deflation, because he'd already explained that deflation was the only possibility, and that anyone posting about stagflation was simply wasting everyone's time. ROFL. How'd that trade work out for him?

Oddly, I can't find his petulant little "take my ball and go home" posts, just people replying to them. Here's one (he does say he's going to shut it down for two weeks, but not why).
http://tickerforum.org/akcs-www?post=44672

Gold? Denninger's been talking about gold collapsing since at least whenever he started his forum. I'm sure he's gloating now that hedge funds are blowing up and gold has dropped from $1900, even though he's been banning people from his forum for daring to suggest buying gold since it was at $700. Oh no, a mere 120% gain since then!

His herd of followers rigidly enforces the group-think. Pika-Steph once told some new poster that if he wanted to talk about stagflation, he should go elsewhere, because (not an exact quote, since I can't find it via Google, but almost) "this is a deflationary bear forum."

Overall, TF was semi-useful in 2007, but he quickly drove out anyone with any brains. The last couple of times I've looked in, it's just tards whining about government policies in general, with a lot of complete fruitcakes screaming about conspiracy theories like "the medical establishment is preventing people from learning about this simple diet that cures all cancers!" and similar bullshit.

Wed, 12/28/2011 - 17:22 | 2017225 Thinkor
Thinkor's picture

First, Denninger's 30 years of market experience do not include the Great Depression, which is the most recent period comparable to our present situation. 

Second, total credit market debt of the US continues to expand, thanks to the Fed's printing operation.  Europe appears ready to follow in the Fed's footsteps, and the Fed seems likely to help them out.  The monetary base has retreated about 3% from its peak in July, but it is still up 32% YOY. 

Third, the gigantic deficits of the welfare states require ever more money creation to sustain.  It is hard to imagine currency rising much relative to gold in such an environment.  If there is a collapse of credit in this environement it will bring a collapse of demand, but also a collapse of supply as the whole economic system is disrupted.   It is in this context that we may see outright rejection of the currency.

Fourth, if gold falls in nominal price, that doesn't mean that it isn't rising in real value.   Because of its use as a store of value, it is likely to fall less than other commodities. 

Is the Fed really going to hit the breaks with the government running a deficit of 1 to 2 trillion dollars?  They will eventually, but it's hard to imagine right now, especially in an election year.

 

Wed, 12/28/2011 - 13:24 | 2016526 Excursionist
Excursionist's picture

Presumably "physical, bitchez" refers primarily to having something of tangible value that could be bartered for goods and services rather than used for speculation or wealth generation.

Holding something like Eagles and using them to procure $1,600 worth of goods at a time seems like an effective route.  Yes, the IRS has forms for barter trades, but I'd love to know what knuckleheads actually submit such data.  The problem of course is that in this scenario the intrepid "physical, bitchez" holder is subject to keeping his / her stock of coins safe.

Wed, 12/28/2011 - 13:50 | 2016627 pacu44
pacu44's picture

You're going to have to think more creatively than just "Physical, bitchez". The forces of monetary oppression are damn good at what they do. It's not going to be as easy or as obvious as just holding physical. Value can be (and will be) extracted from your physical with one stroke of tax legislation.

You cant eat your gold and silver and fly out of the country, those TSA scanners will see it and they will rape you for it...

Timeline for holding must be longer than this era of tyranny...

Wed, 12/28/2011 - 10:41 | 2015830 Oh regional Indian
Oh regional Indian's picture

SD1, all this points to something like the 30"s all over again. Instead of confiscation, they can make legal gold trading strictly .gov property. And set a .gov kind of price. All in the name of national interest. Gold "hoarders" will be branded un-patriotic. And a million more ways to track it all anyways.

Gold= Shaky

ori

/the-plan/

Wed, 12/28/2011 - 10:44 | 2015849 SheepDog-One
SheepDog-One's picture

Sure, people buying physical have to be prepared to be labeled all kinds of things, even a criminal.

Wed, 12/28/2011 - 11:02 | 2015891 krispkritter
krispkritter's picture

Throw in 'terrorist' and I'm in! Do I get a Secret Decoder Ring now?

 

Anecdotal but I've been waiting on my construction to end so I can get a decent gun safe but you can hardly find them around here now. There used to be a good dozen on Craigslist every month or so. Sales at a local store that promoted them on Black Friday were all gone when I showed up an hour after opening to look them over and they've not restocked. Prices seem to be going up too aside from those few on sale. Wondering if their secondary use as a storage spot for PM's is part of the driving force. 

Wed, 12/28/2011 - 11:11 | 2015937 Cast Iron Skillet
Cast Iron Skillet's picture

Nope. Dick Tracy wristwatches are the thing now.

Wed, 12/28/2011 - 11:54 | 2016136 DCFusor
DCFusor's picture

We call those fancy DT watches "iPhones" - the iPhone just isn't as advanced yet - some innovation, eh?  Suing people for copying them copying a cartoon older than most living humans.  Yeah, that's a business model for ya.

Wed, 12/28/2011 - 11:33 | 2016033 MaggieL
Wed, 12/28/2011 - 11:05 | 2015901 chubbar
chubbar's picture

Hell, by the time we are through this debacle it is likely that anyone insisting the gov follow the constitution will be branded a terrorist. The amazing thing to watch is how the general public thinks nothing of a declaration by the gov't to confiscate private property. As if it is the most natural event in the world because after all they are the gov't and they can do what they want! Those fuckers only exist because the states agreed to set up a federal gov't with defined powers. Help begin the end of this nonsense by joining the 10th amendment movement and let's put the issue of gov't confiscation and federal overreach to rest!

http://tenthamendmentcenter.com/

 

Wed, 12/28/2011 - 10:57 | 2015883 pods
pods's picture

Not really worried about that since they have done such a bang up job with the drug war.

pods

Wed, 12/28/2011 - 11:00 | 2015889 Oh regional Indian
Oh regional Indian's picture

But of course pods, because the drug war is not one they want to win. They want to "lose" so they keep "winning".

With Gold, they'll be like pigs to truffle.

ori

Wed, 12/28/2011 - 11:18 | 2015963 Bendromeda Strain
Bendromeda Strain's picture

They never "win" that game for long because it too is unsustainable. Do as you wish, but you aren't dissuading me one iota. Sometimes outwaiting your opponent is a generational thing. So be it. But none of the hand wringers here has proposed a credible scenario where the capital controls stay in place and the bankers win. Boogedy boogedy, Eye of Sauron, blah blah blah. 

 

 

Wed, 12/28/2011 - 11:23 | 2015983 pods
pods's picture

Yeah, what I said was partly in jest, as the drug war increases profits and control for many 3 letter agencies.  They love the drug war.  And it is going exactly as designed.

But the same will hold for gold if it is made illegal.  It will become more lucrative for those who undertake it.

I would be involved, but alas, all my gold fell out of that boat with my firearms during that freak wave capsizing.

pods

Wed, 12/28/2011 - 13:40 | 2016600 RockyRacoon
RockyRacoon's picture

Sad story there, pods.  Mine fell out of the back of my pick-up while I was transporting it to the Treasury Department.  I was going to donate it to the gov't to help pay down the debt.  Just doing my part, you know.  I knew they would do the right thing.  Look at all the wonderful benefits we get with our voluntary income tax payments!  I'm really sad I lost out on this wonderful patriotic offering opportunity to help my beloved country.

Wed, 12/28/2011 - 14:17 | 2016708 pods
pods's picture

Don't beat yourself up too bad Rocky, accidents do happen!

pods

Wed, 12/28/2011 - 18:24 | 2017367 pacu44
pacu44's picture

I too had a horrible boating accident where all my gold, silver, brass, lead and firearms sunk to the bottom of the waterway... :(

 

I am most depressed...

Wed, 12/28/2011 - 11:27 | 2016008 Iam_Silverman
Iam_Silverman's picture

"Not really worried about that since they have done such a bang up job with the drug war."

They haven't "won" the war against drugs because they haven't tried to.  It is an essential part of other coverups:

http://articles.businessinsider.com/2011-12-06/politics/30481045_1_money...

http://thenewamerican.com/usnews/congress/10130-congress-probes-dea-drug...

Wed, 12/28/2011 - 12:59 | 2016403 ThisIsBob
ThisIsBob's picture

The war on drugs is a government sponsoired industry, providing employment to hundreds of thousands of people and buying billions of dollars of goods.

How do you end that?

 

 

Wed, 12/28/2011 - 13:10 | 2016458 pine_marten
pine_marten's picture

"The war on drugs is a government sponsoired industry, providing employment to hundreds of thousands of saddist goons and buying billions of dollars of goods."

Fixed it for ya.........

Wed, 12/28/2011 - 14:07 | 2016673 RockyRacoon
RockyRacoon's picture

Ha!  And they say government can't create jobs.  This shows it ain't so.

Wed, 12/28/2011 - 19:30 | 2017522 moneymutt
moneymutt's picture

did you know a whopping 30+ percent of us considered crime our number one problem in 1994, now only 1 percent of the population has that as a nubmer one problem.

The war on drugs is govt tyranny at best, while white people certainly have had abusive and oppresive police drug raids, arrests, the black and latino community has been so disproportianately affected by this govt tyranny and oppression because our law enforcement is so biased, even tho all kinds of studies show that blacks and latinos do not use or sell drugs at any greater rate than whites.

The rise of the profitable private prison industry coincided with the implementation of draconian sentences for drug crimes. Now that has played out and was tailing off, suddenly incarcerating, not deporting, illegal immigrants is the new chic legislation. I know of many immigration lawyers who say some of their clients have been held so long, they end up pleading that they get deported, and get ignored, just because they would rather be free, away from their family and community, rather than be locke up any more, but they don't even get deported.

for some interesting bi-partisan bashing of the corruption of our govt and law enforcement, read Catherine Austin Fitts, go insider Wall Street and Fed govt stuff from the 90s

Wed, 12/28/2011 - 11:04 | 2015897 spanish inquisition
spanish inquisition's picture

If MFG taught you anything, it is not to trust the "security" of storage of anything with a bank.

I don't have a box, but wonder in the 5 page agreement, if they are aloud to rehypolthocate the estimate value of all boxes in the bank and use as security.

I am joking, but if you have a safe deposit box and receive an amendment to the original agreement in the next month or so.... You probably want to read it.....

Wed, 12/28/2011 - 14:10 | 2016681 RockyRacoon
RockyRacoon's picture
Not-So-Safe-Deposit Boxes: States Seize Citizens' Property to Balance Their Budgets

 

http://abcnews.go.com/GMA/story?id=4832471&page=1&singlePage=true#.Tvqrn...

Wed, 12/28/2011 - 19:02 | 2017453 Freebird
Freebird's picture

Yes some do. If you sign a ·pledge· some take the contents of a box also as collateral / security.

Wed, 12/28/2011 - 11:35 | 2016046 philipat
philipat's picture

So why is the price of PM's still declining?

Wed, 12/28/2011 - 12:19 | 2016264 LongBalls
LongBalls's picture

It's a reflection of the flight from the Euro to the Dollar, the selling of assets to raise fiat, and the threat of deflation. Gold is going down in dollar terms but rising in terms of Euro. But rest assured. The more purchasing power the Dollar has the more expensive it makes our goods to the rest of the world to purchase. Thus slowing down our GDP growth which is already nearly flat. The Fed. will be forced to print even more. Although maybe not announced as QE but printing none-the-less. In fact, they have not stopped printing. Hell, even they state their target rate of inflation is 2% per year but we all know it's more like 10%. Buy gold/silver and do not be scared.....It WILL drop in price but trying to time the bottom is suicide. Just pick an entry point you can live with and keep enough cash on hand to make sure you don't have to panic sell like the banks to raise cash.

Wed, 12/28/2011 - 13:54 | 2016642 JLee2027
JLee2027's picture

 

Buy physical Gold and Silver, not paper. Do not buy SLV or GLD.

Wed, 12/28/2011 - 13:53 | 2016635 JLee2027
JLee2027's picture

Well let's see.

1) You can't get physical metal off Comex. It's a paper casino where the rules change as the house decides.

2) Stolen money if you used MF Global as a clearing house.

People fleeing Comex because it's a rigged market...open interest is down 9% since the MF Global failure. Ann Barnhardt and Jim Willie recently had some great insight on that.

http://news.goldseek.com/GoldenJackass/1324501200.php

 

 

 

Bottom Line: Expect the phoney paper prices to keep declining, but the real physical price inthe market will stay steady and then rise.

 

Thu, 12/29/2011 - 01:24 | 2018305 Buck Johnson
Buck Johnson's picture

Spot on, spot on.  They don't realize that those same banks which become nationalized won't take the safe deposit boxes also.

Wed, 12/28/2011 - 10:30 | 2015803 Cultural Capital
Cultural Capital's picture

St. Kitts, Bitchez

Wed, 12/28/2011 - 10:30 | 2015804 Irish66
Irish66's picture

Finally some truth

Wed, 12/28/2011 - 10:30 | 2015805 GeneMarchbanks
GeneMarchbanks's picture

'Others are said to be buying property in London and elsewhere lest you awake one day and discover that your Euros have reverted to drachmas or lira'

London?! Now that is some dumb shit.

Wed, 12/28/2011 - 10:41 | 2015835 Mercury
Mercury's picture

I don't know...I see places like London and NYC becoming (even more) like stand alone city-states supported by lots of foreign capital and relatively prosperous  as the countries around them deteriorate.

Wed, 12/28/2011 - 10:50 | 2015866 youngman
youngman's picture

He is talking about Bankers....not the normal sheeple or guy on the street.....so they know NYC and London....as banking centers...safe ports to them...

Wed, 12/28/2011 - 11:00 | 2015890 Mercury
Mercury's picture

Well, head for the hinterlands if you want but even in a Lehman event x10 you could do a lot worse than hustling your next meal or working as a public employee in a city like this.

Wed, 12/28/2011 - 11:21 | 2015978 Rip van Wrinkle
Rip van Wrinkle's picture

London's a powder keg. It will blow at some point. And I'm damn glad I'm out.

Wed, 12/28/2011 - 14:33 | 2016759 goldnguns
goldnguns's picture

NYC mebbe, but hell, you can't get a good meal in London.  The Hisotry of the English Speaking People is simply their serach for good food and good weather.

Wed, 12/28/2011 - 11:41 | 2016057 philipat
philipat's picture

"London?! Now that is some dumb shit."

The London property market is rock solid and has not declined at all during the financial crisis. London property is sold to Arabs, Russians, Asians etc. and is a truly International market, just as much, if not more so, than New York. A recent development on Hyde Park, next to the Mandarin Hotel, sold Condos for up to USD 90 Million.

Do get your facts straight.

Wed, 12/28/2011 - 12:25 | 2016289 CuriousPasserby
CuriousPasserby's picture

Don't the rioters burn down whole blocks in London? I'd prefer something in a small town. With an extra large garden to grow food.

Wed, 12/28/2011 - 19:33 | 2017529 moneymutt
moneymutt's picture

can you say bubble....those people can easily withdraw their money from the market a go any where, they are fickle...Dubai, Istanbul, Buenos Aires, LA, NYC,....

Wed, 12/28/2011 - 10:32 | 2015806 hugovanderbubble
hugovanderbubble's picture

London will be the Next Athens,Rome....Another Empire Collapsed

Then NY...

Wed, 12/28/2011 - 10:33 | 2015807 apberusdisvet
apberusdisvet's picture

The "bank run" I'd like to see would be made up of the GS alumni running Europe being chased down the street by angry mobs carrying pitchforks and nooses.

Wed, 12/28/2011 - 10:39 | 2015826 cossack55
cossack55's picture

Kind of like a Pamplona run, only with bankstas.  Hello, WB7, you there.  Fiesta de San Fermin.

Wed, 12/28/2011 - 11:21 | 2015903 ucsbcanuck
ucsbcanuck's picture

Seeing as it's the bankers, more like Fiesta de Kill the Vermin

Wed, 12/28/2011 - 12:06 | 2016194 Karlus
Karlus's picture

Misdirected. A bank is merely a means to an end. A run with Fed and central banker legislators would be more accurate.

These are the folks that selected housing as the next bubble through lowered lending standards so "everyone" can qualify

These are the folks that changed the accounting rules mid stream and caused the bubble to pop

These are also the folks that come in, have no idea about the policy they are setting and then safely run back to academia or resign when their policies cause distruction. Im talking to you Bawney Fwank

Wed, 12/28/2011 - 12:06 | 2016196 Karlus
Karlus's picture

Misdirected. A bank is merely a means to an end. A run with Fed and central banker legislators would be more accurate.

These are the folks that selected housing as the next bubble through lowered lending standards so "everyone" can qualify

These are the folks that changed the accounting rules mid stream and caused the bubble to pop

These are also the folks that come in, have no idea about the policy they are setting and then safely run back to academia or resign when their policies cause distruction. Im talking to you Bawney Fwank

Wed, 12/28/2011 - 10:57 | 2015882 Sandmann
Sandmann's picture

Goldman buys pitchforks wholesale - it is silver bullets and garlic that need to be sprayed in their direction

Wed, 12/28/2011 - 10:33 | 2015808 alien-IQ
alien-IQ's picture

EUR/USD has taken a very sharp downturn in the last 20 minutes.

interesting....

Wed, 12/28/2011 - 10:38 | 2015824 achmachat
achmachat's picture

Did you check out silver spot?!!
Unfortunately my bullion dealers don't seem to care about these prices.
They have lowered their prices by around 11 cents the last 3 days.

Wed, 12/28/2011 - 10:40 | 2015829 cossack55
cossack55's picture

What??? They don't sell the paper shit?

Wed, 12/28/2011 - 10:43 | 2015843 achmachat
achmachat's picture

they used to follow the paper price...
ah... good times! good times!

Wed, 12/28/2011 - 10:44 | 2015851 ISEEIT
ISEEIT's picture

Yeah the same 20 minutes I was reading an article elsewhere. Hit my short though. Now I'm long back to 1.3065. Risky for sure but that's the game eh?

Wed, 12/28/2011 - 10:33 | 2015809 Temporalist
Temporalist's picture

Don't panic!

Look to Ben Gandalf the Greybeard's coming on the first light of the Fifteenth Minute at dawn look to the east (or west...somewhere but it'll only take 15 minutes)

Wed, 12/28/2011 - 10:34 | 2015810 pods
pods's picture

I am all for trading in paper for tangibles, but to then sock it away in a safe deposit box?  

pods

Wed, 12/28/2011 - 11:09 | 2015922 ucsbcanuck
ucsbcanuck's picture

Safe deposit box which you keep maybe?

Wed, 12/28/2011 - 11:29 | 2016015 pods
pods's picture

About 2 bucks in PVC and a shovel will store as much as you need.  And there are a million ways to hide valuables almost in almost plain sight.  No need to prepare for fiat's collapse and then put your faith in fiat institutions to hold onto it.

pods

 

Wed, 12/28/2011 - 13:28 | 2016548 RafterManFMJ
RafterManFMJ's picture

 

 

I get my Gold Storage Advice from Mr. T.

Wed, 12/28/2011 - 11:10 | 2015927 ucsbcanuck
ucsbcanuck's picture

And remember, the Swiss have a long tradition of not touching the safe deposit boxes. Who knows what is sitting in those vaults?

Wed, 12/28/2011 - 11:26 | 2016002 pods
pods's picture

But did not the Swiss knuckle under to Uncle Sam when he came looking for profits?  Swiss banks have a large presence outside of Switzerland.  Swiss banks are nowhere near as impenetrable as once thought.

pods

Wed, 12/28/2011 - 15:01 | 2016853 vato poco
vato poco's picture

True dat. One does hear good things about Luxembourg, though. Anyone with Lux experience care to comment?

Wed, 12/28/2011 - 10:34 | 2015812 AngryGerman
AngryGerman's picture

Y U NO GIVE MORE MONEY TO US?

 

bank run won't happen, bail-outs will continue. In most European countries client money is backed up (to a certain limit) by the state in case of a bank collapse. So when solvency arises, it's more logical for the state to simply nationalize the bank.

Wed, 12/28/2011 - 11:11 | 2015929 jcaz
jcaz's picture

LOL- ya, that worked out pretty well for you in 1922.......

Wed, 12/28/2011 - 10:36 | 2015817 Mercury
Mercury's picture

For the Euro its print or punt. Either way you want to be heavily invested in something else.

Wed, 12/28/2011 - 10:38 | 2015822 split4to1
split4to1's picture

well we can certainly see how this is impacting europe and euro in a technical aspect Forex4you Technical Analysis 28 Dec 2011

Wed, 12/28/2011 - 22:35 | 2015825 xcehn
xcehn's picture

The panic in Europe is palpable. Bank runs are a poorly kept secret. Forget about the MSM, talking to your friends in Europe is the best way to know.  How anyone can think 2012 will be bullish is beyond me.

Wed, 12/28/2011 - 10:39 | 2015827 j.tennquist
j.tennquist's picture

Euro just fell 7 cents in 10 minutes.  Trading under 1.3000

Wed, 12/28/2011 - 10:42 | 2015838 cossack55
cossack55's picture

Damn that Isaac Newton and his whole gravity thingy.

Wed, 12/28/2011 - 10:42 | 2015839 bnbdnb
bnbdnb's picture

70 pips, that would be about .8 cents.

Wed, 12/28/2011 - 10:45 | 2015852 j.tennquist
j.tennquist's picture

Yes, You are right.  I was beside myself with grief for not having my shorts in place.

Wed, 12/28/2011 - 10:48 | 2015862 bnbdnb
bnbdnb's picture

I got out a long time ago, stupid margin calls.

Wed, 12/28/2011 - 23:09 | 2018087 billsykes
billsykes's picture

word

Wed, 12/28/2011 - 10:46 | 2015855 SheepDog-One
SheepDog-One's picture

Huh, guess that whole 'all is well starting right NOW' thing is a bit shaky.

Wed, 12/28/2011 - 23:21 | 2018109 BidnessMan
BidnessMan's picture

Remain calm -- all is well !!

Kevin Bacon in the movie Animal House....

http://www.youtube.com/watch?v=zDAmPIq29ro

 

Wed, 12/28/2011 - 10:41 | 2015831 bnbdnb
bnbdnb's picture

Why 65 point eur pip drop?

Wed, 12/28/2011 - 10:43 | 2015840 Temporalist
Temporalist's picture

And Oil is high...I guess the recession is over!  Hurray 2012!

Wed, 12/28/2011 - 10:47 | 2015859 SheepDog-One
SheepDog-One's picture

They drove gas low for 'holiday retail conzumer euphoria', thats over today too I bet. 

Wed, 12/28/2011 - 10:51 | 2015870 Tsar Pointless
Tsar Pointless's picture

In the Pittsburgh area, gas went up six cents overnight between 12/23 and 12/24 - the latter of which is known as "Christmas Eve" and just so happens to be one of the busiest travel days here in the States.

Oh, and it was a Saturday, too, this year. Strange to see gas prices go up on a Friday night at any given time of the year, let alone the day before Christmas.

So, bah-humbug! And have a happy 2012!

Wed, 12/28/2011 - 10:43 | 2015841 LongBalls
LongBalls's picture

Europeans picked a good day to buy gold. BTFD..... The gold smash is for a reason. And that reason is because the Bernake is going to be forced to accelerate the print. Look at the USD/EUR!

Wed, 12/28/2011 - 11:25 | 2015998 Cast Iron Skillet
Cast Iron Skillet's picture

Agree.

Wed, 12/28/2011 - 11:01 | 2015887 virgilcaine
virgilcaine's picture

The Euro & the Greek and Italian 10 yrs were clues the LTRO was just another ploy. With the Euro sinking and rates rising.  One can sense the fear.

Ive been reading about the LTRO for a few weeks and still don't know what it stands for .. It's that insignificant.

 

Wed, 12/28/2011 - 11:15 | 2015955 ucsbcanuck
ucsbcanuck's picture

LTRO = Long Term Refinancing Operation

Time for the Europeans to acquaint themselves with some other acronyms

SNAFU

FUBAR

CF

Wed, 12/28/2011 - 11:25 | 2015997 Temporalist
Temporalist's picture

A2M - if you don't know...

Wed, 12/28/2011 - 11:33 | 2016036 Iam_Silverman
Iam_Silverman's picture

"Time for the Europeans to acquaint themselves with some other acronyms"

LTCM?  That was quite the success!

Wed, 12/28/2011 - 11:20 | 2015974 ucsbcanuck
ucsbcanuck's picture

BAC back down to 5.36

Wed, 12/28/2011 - 11:26 | 2015995 PulauHantu29
PulauHantu29's picture

Bloomberg

London Brokers ‘Throw in the Towel’ as Debt Crisis Hits Revenue

December 27, 2011, 7:38 AM EST

 

By Sarah Jones

Dec. 22 (Bloomberg) -- London’s stockbrokers are shrinking as Europe’s sovereign debt crisis and competition from international firms squeezes revenue and fees.

In the past month, Altium Capital closed its securities unit. Evolution Group Plc, Merchant Securities Group Plc, Arbuthnot Securities Ltd. and Collins Stewart Hawkpoint Plc have all accepted takeover offers from larger competitors.

“It feels worse than any other time,” said Lorna Tilbian, an executive director at Numis Corp. who began her career in 1984. “All I hear about is people putting up a white flag.”

http://www.businessweek.com/news/2011-12-27/london-brokers-throw-in-the-...

 

London RE prices may experience a "correction" since The London City financial giants (and their sizeable bonuses) were the main buyers who pushes RE prices to their Bubble levels in the UK according to Bill Bonner at the Daily Reckoning.

Wed, 12/28/2011 - 11:26 | 2016003 Dr. Engali
Dr. Engali's picture

I thought consumer confidence was at it's highest point ever in the history of man. Doesn't that count for anything?

Wed, 12/28/2011 - 11:28 | 2016010 financial apoca...
financial apocalyptic contagion's picture

iv been reading this sky's abt to fall threat at ZH for 6 months now and dont get me wrong i do believe it.
but tyler bro, acc to u, around when will we finally see some fucking action (like a 6-month time frame?) and not lame prophecies and doomsday safety measures in the comments section?

im frankly tired of it all now and dont know what to believe

Wed, 12/28/2011 - 11:35 | 2016045 ucsbcanuck
ucsbcanuck's picture

Dude - what do you want Tyler to be?

Tyler has his limitations - he can analyse and see that things are potentially heading in the wrong direction. However, as we well know by people are irrational and can stay irrational for a very long time - think Internet stock bubble irrational. Or housing market irrational. Until one day - something clicks and everything heads south like in 2008.

You're asking Tyler to tell us when that one day will come. Simple answer - he doesn't know. There's too much going on for him to call it.

However, take Tyler's advice for what it is - a warning that all is not well, and start preparing. Every day that things don't go wrong is another for you to thiink and prepare.

Wed, 12/28/2011 - 11:41 | 2016074 Lednbrass
Lednbrass's picture

I see that sort of comment here with some freqency, and dont understand it.

To me its the equivalent of riding in a car when the oil pan gets punctured and demanding to know how many miles it will roll on before the engine will finally seize up.  Nobody can say, there are just too many variables- but it does not make the observation that the engine will at some point cease functioning properly and fail to power the vehicle any less correct or pertinent.

Wed, 12/28/2011 - 12:03 | 2016163 Iam_Silverman
Iam_Silverman's picture

"There are just too many variables"

So true, such as "did he use ProLong (TM) engine oil treatment as recommended by mechanics worldwide?"

 

http://www.youtube.com/watch?v=tQ9-yx3NRV4&feature=related

Wed, 12/28/2011 - 19:52 | 2017582 Poor Grogman
Poor Grogman's picture

"when will we finally see some fucking action"

Exponential functions are a bit like that at first.

By the time you start to "see somthing" its almost over.

 

Wed, 12/28/2011 - 11:42 | 2016069 Iam_Silverman
Iam_Silverman's picture

"when will we finally see some fucking action"

Oh, we still have some time left.  In fact, probably enough time for you to review the use of capitalization and punctuation, and maybe toggling the spellchecker to "on".

Wed, 12/28/2011 - 12:04 | 2016179 LongBalls
LongBalls's picture

We CAN NOT expect to wake the masses with ridicule. We all awake from the dream in our own time. It is our DUTY and in the best interest of our own SAFETY/FREEDOM to educate those just now catching on. It can be frustrating, trust me, I know. But keeping a level head is the best defense.

Keep up the fight.

Wed, 12/28/2011 - 14:19 | 2016713 RockyRacoon
RockyRacoon's picture

Some of them will only be moved by being shamed into action.  Takes all sorts to make a world.

Wed, 12/28/2011 - 11:45 | 2016087 Rockfish
Rockfish's picture

 

 financial apoca...

iv been reading this sky's abt to fall threat at ZH for 6 months now and dont get me wrong i do believe it.

You show being a member for 6 days 1hr.

Thanks for the input.

Wed, 12/28/2011 - 12:05 | 2016185 financial apoca...
financial apocalyptic contagion's picture

no shit my other account was cancelled 2 weeks ago

Wed, 12/28/2011 - 16:01 | 2017015 Iam_Silverman
Iam_Silverman's picture

"no shit my other account was cancelled 2 weeks ago"

 

For?

 

(Why?)

Wed, 12/28/2011 - 11:45 | 2016094 AC_Doctor
AC_Doctor's picture

Get out your crystal ball and pray to Damian for advise...

Wed, 12/28/2011 - 13:28 | 2016552 SillySalesmanQu...
SillySalesmanQuestion's picture

Leave...don't come back and never post (Troll) these pages again....hmmmmffft...

Wed, 12/28/2011 - 14:04 | 2016662 Straw Dog
Straw Dog's picture

"when will we finally see some fucking action"

Here's a quote from John Hussman's website  31oct11

The tendency to demand predictable outcomes to also be immediate is a dangerous one, because it allows investors to be sucked in by temporary reprieves during what are, in fact, very negative conditions. (in this particular instance), but the tendency applies to all intances where outcomes are predictable, regardles of whether they are positive or negative {however that is defined})

Wed, 12/28/2011 - 14:17 | 2016697 RockyRacoon
RockyRacoon's picture

iv been reading this sky's abt to fall threat at ZH for 6 months now and dont get me wrong i do believe it.
but tyler bro, acc to u, around when will we finally see some fucking action (like a 6-month time frame?) and not lame prophecies and doomsday safety measures in the comments section?

im frankly tired of it all now and dont know what to believe

If the world fell apart yesterday you'd be wanting to know why you weren't warned.

Fool.

Blend your own due diligence with what you find at ZH and elsewhere -- and make your own plans.

Stop thinking others will look out for your raggedy ass.

Wed, 12/28/2011 - 20:26 | 2017685 DanDaley
DanDaley's picture

Look at it this way.  It's snowing like hell on the mountain, and there's going to be a hell of an avalanche, but nobody knows which snowflake is going to get it going.  Want to go sking?

Wed, 12/28/2011 - 11:31 | 2016030 toothpicker
toothpicker's picture

"gold will be confiscated" "gold will be oh so taxed" "gold isn't worth anything really" "gold has topped because I saw a tech chart pattern that said something like that...maybe" etc etc

Thanks for all the SINCERE warnings!!

Wed, 12/28/2011 - 11:33 | 2016038 Eurodollar
Eurodollar's picture

Economic sustainability in Europe is a edge balancing act. There is no doubt that the will to overcome the problem is present. My biggest concern is that there will be little or no growth, potentially recession. Add to that the recapitalization of banks and strict austerity programs and it becomes hard to see how the debt burden will be solved for the next 10-20 years.

We all know politicans are excellent can kickers by now. Bureaucrats are not far behind. Especially naive dreamy right brain bureaucrats. Bankers will kick cans and whatever as long as there is something in it for them. Greed is good some lol character once said.

We should by now be able to understand there is NO WAY they will let the cat out of the sack unless such an event occurs that they can not manipulate, defraud or force in any shape, way or form. Greece and potential contagion triggering CDS'es might be such an event, but it is hard to say without knowing the actual sums insured and who insured them to who.

In other words; it looks like we are heading for a Japan slow-mo scenario.

Deflation should be heading our way unless energy prices spikes and makes sure we all don't start hoarding cash.Inflation due to indirect/direct printing? Perhaps when the money printed actually manifest themselves in the economy and drizzle down the food chain increasing demand in turn increasing prices. However, we got a long way to go before that as production capacity in the west is no where near highs indicating inflation.

Also, the money printed as of now is circulating through the system while being shaved off (fees and bonuses). Insolvent banks and governments are using this cash to cover their inabilities to operate as a going concern. This is a win win for the banksters and the political/bureaucrat class. They live to see another day professionally speaking.

For energy prices to start rising beyond the typical winter rise we might need Iran tension to intensify. Maybe also a little rift with the Saudis is on the cards if all else fails? At the very least we need some warmongering somewhere that can send oil prices through the roof.

The risk with this scenario is quite obvious as it could very well be a WW3 starter, but I guess that central planners and other technocrats are to busy grinding excel to take notice. Its just another statistic or probability. Who cares about life and death when the economy is at stake, right?

European demographics aren't that lovely either. The next big crash we get will be when the generation that stole the wealth all goes into "deserved" retirement. Or maybe we manage to import enough african and middle east workers. Then we will have more workers to support our old and greedy. We can tax them hard too. Modern slavery anyone? On the flipside, democracy would turn against this and Europe would be a islamic union within not too long. Got to give and take.

Glad I can sit here on the sidelines!

Wed, 12/28/2011 - 11:39 | 2016062 Bullwinkle Moose
Bullwinkle Moose's picture

How could anyone be surprised?

Wed, 12/28/2011 - 11:46 | 2016098 ucsbcanuck
ucsbcanuck's picture

FXE down to 128.98

Wed, 12/28/2011 - 11:59 | 2016153 crzyhun
crzyhun's picture

More gold liquidation. Signs of liquidity needs and sell what can be sold. Actually amazing, Iran etc and Euro collapse over the holidays. Orchestrated?

Wed, 12/28/2011 - 12:06 | 2016193 tony bonn
tony bonn's picture

those dumb bunnies buying safety deposit boxes are fucktards....just as california banks have looted their customers' boxes, so the ravenous banksters will loot those in europe....switzerland will be absorbed by the german eu and conpelled to follow the party line making those swiss francs about as whole as swiss cheese....

europe is sick beyond repair....

humpty dumpty sat on a wall....blah blah blah

Wed, 12/28/2011 - 12:27 | 2016294 Amish Hacker
Amish Hacker's picture

Good luck with those depository accounts. I seem to recall that in Argentina, people smart enough to see what was coming were enticed into opening "dollar accounts" at Argentine banks. They thought they had side-stepped the peso crisis. But guess what: when the SHTF, their accounts were converted back to worthless pesos.

Wed, 12/28/2011 - 12:36 | 2016330 virgilcaine
virgilcaine's picture

Panic in the eu Banks big time.. see the article by Gordon Long.

Wed, 12/28/2011 - 12:46 | 2016355 Shizzmoney
Shizzmoney's picture

I think the Europeans, both lower class and upper, are starting to realize the "Bank of Sealy Posturepedic" is the safeist bank you have have your money in, at the moment.

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