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Blast From The Past: Kyle Bass Was Right About Everything... Again
When back in May 2010 Greece was bailed out for the first time, the corrupt authorities and the conflicted media said this is the beginning of a new beginning, and soon everything would be fixed. Nothing has been fixed and everything has gotten far worse. Back then we were among the few to point out that the "bailout" was a travesty and that you can't fix an excess debt problem with more debt, yet that has been precisely the methodology of every bailout ever since the first. Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can, unfortunately the strength of every kick is getting weaker and weaker until one day, the can refuses to move, and it is game over. Looking back at this historic period which sealed the fate of the Keynesian system, nobody has caught the paradoxes of the current broken economic and financial model better than Kyle "Nickels" Bass. Below, for everyone's must read pleasure, we once again present his May 11, 2010 letter titled "The Pattern is Set ? Betting the Bank on a Keynesian Free Lunch" which fuses everything that has happened in Europe since then on the fiscal side, and is about to happen on the monetary one. "From now on, it seems everything will be deemed to be a liquidity crisis that will be met with more "bail?outs" and debt financed spending. This will eventually break traction in a violent way and facilitate severe inflation or even hyperinflation. The one thing the EU taught us this weekend is that paper money will be worth less (maybe much less) in the future." And indeed it will, because more than anything, money is increasingly and rightfully seen as the symbol of the free lunch that Keynesian economics promises, after that "just one final debt hit." Is there much or any hope? Not really, but being prepared while watching the inferno blazes soar higher and higher is the best we can all do.
The all-encompassing summary paragraph:
This weekend, the EU and the IMF effectively went all?in with a bad hand in the highest stakes game of financial poker ever played with the world. We believe the agreement released was nothing more than a Potemkin agreement in order to placate bond investors. In the end (and there will be a reckoning for many countries) nations, including the United States, need to dramatically cut spending and get their fiscal balances in order. Unfortunately, our elected officials are on the hamster wheel of electoral cycles and are not able to make tough decisions like this as they would likely not be re?elected without a “sea change” in public opinion towards government spending and deficits. We are therefore on the path to significant currency devaluation around the world that will likely result in significant inflation. We increased our holdings of gold on Monday morning as well as taking other steps to position ourselves for the most likely outcome over the next few years. Interestingly enough, based upon the market reaction in the last 36 hours, it seems the law of diminishing returns applies to bailouts as well.
Full letter.
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Whether he advocated it or not is irrelevant. Intentions are irrelevant. What matters is the actual results of practically implementing his economic philosophy in world where we have imminently corruptible politicians trying to centrally plan the economy.
That's how you know Jesus was just another asshole. Whatever he preached is immaterial to the fact that Christianity caused the Crusades.
(Hrm. Wait...)
Agreed-
It's similar to an ongoing situation we have where I work, where some of the management keep resisting improving our production processes in the theory that our exisiting systems are excellent, and it's people that just fuck the whole works up.
That may or may not be true, but the fact of the matter is that things get fucked up every time we do a project, and to my mind, that means that how the system looks on paper is irrelevant- what matters is that it doesn't work in practice.
A good system has to account for human error, or it's almost more dangerous and difficult than no system at all. At least in the absence of a system, each person involved in the process needs to think and is potentially liable for the results of thier decisions- where in a poorly designed system, bureaucratic personalities can destroy the final result, and then point to the broken system to justify their behavior
It's the number one reason that incompetent boobs dominate middle management- they're not good at what they are supposed to be doing (IE producing a product, or providing a service) but they are good at covering their asses and providing plausible explanations for why mistakes were the fault of people, not the system. Of course executives love this, because it means that they do not have to perform thier function of revising the systems and corporate culture- which in turn means less hours in the office, and more time spent taking clients out golfing and out to dinner.
A good system is a work of genius, but sadly, there are not that many geniuses out there, and the few that are there tend to be somewhat unpredictable- providing perfect clarity sometimes, and foolish claptrap at others.
When the Keynesian method is derided it is to point out the faultiness of the Keynsian philosophy which has led the world to this point. Perhaps it was not put into practice as Keynes had described but anyone with a drop of sense knows that politicians would NEVER "save" during the good times and only know how to spend.
Basically the Keynesian theory is to the benefit of politicians and banksters who never intended to adhere to it so of course they'd support it. It is their best friend.
Keynesianism is like giving Kim Kardashian an unlimited credit card, sending her to Rodeo Drive and saying only buy stuff on rainy days but not on sunny days. You told her what to do...but you know what to expect.
Keynesianism is a great idea that will never work in practice.
Sorta like socialism. Human nature gets in the way.
Countercyclical savings in good times to make up for countercyclical spending in the bad times to smooth the business cycle?
Ha! Will never happen.
Keynesianism is NOT a great idea. Capital needs to be directed productively and goverments created programs to stimulate the economy will almost certainly be a waste of capital.
Don't forget the finishing touch which was put on Keynesianism during the last 30 years of accelerated printing: MMT or as known to the public "supply-side economics" or Friedmanism. The particulars of the predicament we're in emerged as a result of both. Keynes was all about fiscal pump priming, MMT is all about monetary expansion. Ultimately they're both about a free-lunch, only one is channeled from the bottom up and supply-side is a top-down or trickle down approach. With pure Keynes we would have hyper-inflaiton by now. Add supply-side into the equation and the result is Biflation
It was argued in the 90's "Friedman was wrong." I'm not so sure now. The theory that "high prices begets more supply" seems to be holding up quite well. The theory that "more supply begets lower prices" on the other hand appears to be leading to the financial collapse of the entire Western World.
Yup. The Friedman approach was to create endless overcapacity to keep prices under control while endless money printing would maintain demand and avoid deflation. Goldilocks, remember? They never anticipated the side effects like depletion of natural resources, global money imbalances and terminal overcapcity in the Western world
friedman is like the rest of these chosen-ite nobel peace prize winners. authors of total bullshit..........
How about the assertion that politicians selected Keynes' theories, because he proposed to do the easy thing now (deficit spending as "stimulus") and the hard thing later (cutting deficits to the point of surplus), which would be under someone else's watch.
Unfortunately, approaches to do the easy thing first and the tough one later NEVER work.
And if Kenyes had the tiniest bit of real intelligence, he knew that - or in other words he willingly became the economist prostitute of the politicians.
Merkel and the ecb just said fuck you to the rest of europe again, so we'll get the same week as last week.
NICE!
BURN ROME BURN!!!
Isnt Belgium's sovereign debt at 200% of GDP?
Isnt it the highest in Europe?
Why wont you burn first? Whats keeping your rates fairly low?
"they're running the whole thing out of Brussels." And that ain't no sprout, buster. Tom Keene is a complete fucktard, too. Wait 'till Egypt, Turkey and Iran have a "meeting of the minds." As they say "all roads lead to Damascus."
it's illegal to melt coins. not so smart.
Indeed: But a nickle will be worth something, because it is worth something, can't say thet about a piece of paper.
You are wrong about paper being worthless. It always has value. A (paper) Federal Reserve Note is worth 12.44 BTU. (British Thermal Unit)
I stand corrected, long BTU bitchez.
Soon it will be illegal to purchase with the intent to melt. So listen carefully students. DON'T try this at home.
You are not so smart. You don't have to melt something if you know what the metal content is and they alter the make-up, i.e. debase the specie.
I guess it wasn't so smart to collect pre-1964 coins either....since a $100 face value of them is about $2700.
Precisely. And having it in its coin form makes it even more acceptable, therefore, valuable. No need to melt down a coin to realize its value. Who would even think of melting down a roll of Mercs?
"Who would even think of melting down a roll of Mercs?" Those shifty damned Canadians! Oh...that was rhetorical.
Not I, Mr. Racoon. I carry an airtite roll of them in my briefcase, just in case.
Germany's finance minister Wofgang Schäuble having his usual megalomaniac moment and telling Britain WILL join euro soon. These EU-dictators really have lost their mind. Desperate attempt to create the Fourth Reich WILL end miserably and not just in economic terms...
http://www.telegraph.co.uk/news/worldnews/europe/eu/8900799/Britain-will...
In 7 months, elections will start over here in europe, so don't expect any country to pick up anothers country's shit because it could cost them votes.
He who holds the middle finger the longest will win the elections because in a crisis the opposistion is always the most liked party.
As we come to the end of the second half of 2011, it is evident that 15,000 billion in ghost assets have gone up in smoke since last July, just as was anticipated by LEAP/E2020 (GEAB N°56). And, according to our team, this process figures to continue at the same rate throughout the year to come. Indeed we estimate that, with the introduction of a 50% discount on Greek government debt, the global systemic crisis has entered a new phase: that of the generalized discount on Western public debt and its corollary, the fragmentation of the global financial markets. Our team believes that 2012 will bring an average discount of 30% of total Western public debt [1], plus an equivalent amount in loss of assets from the balance sheets of worldwide financial institutions. Specifically, LEAP/E2020 anticipates the loss of 30,000 billion ghost assets by early 2013 [2], with an acceleration in 2012 of the partitioning process of the global financial market [3] into three increasingly disconnected currency areas: Dollar, Euro, and Yuan. These two phenomena feed into each other. They will also be the cause of a sharp decline of 30% on the part of US currency in 2012 [4], as we announced last April (GEAB N°54), which will occur amidst a sharp reduction in demand for the US dollar and the worsening of the US governmental debt crisis. The end of 2011 will therefore see, as anticipated, the trigger of the European debt crisis detonating a US bomb.....Cont
http://www.europe2020.org/spip.php?article715&lang=en
Thanks Goldstandard,
GEAB is interesting because it gives a different view of the fate of the Euro than we in the US ever read and, also, because GEAB has been accurate in its reading of Europe from a European perspective. As a counterbalance to ZH, it has value; reading a different 'take' can be quite helpful at ameliorating the frozen brain syndrome or FBS.
If anyone doubts my assertion, past issues can be found on the site in four languages----nothing to sell here, simply a friendly recommendation.
I pick up a lot of good things from you dudes here at ZH, so thanks for your help om
Likewise; I found GEAB from a link at ZH.
The inflation or deflation question is best solved by asking, "which will people value most". When faced with a decision to trust a privately owned bank's currency, (us $) or some other store of value, which will people choose? Eventually, even the "dancing with the stars" crowd will choose something besides the electronic or paper bank notes.
Then, the banker controlled police and military will seek to confiscate the "other" currencies (food, ammo, gold) for their masters to control.
Molon Labe.....
LOL, you still think your gonna get rich holding gold.... lmao
They're there waiting for your shoes, you're supposed to put them by their door.
was that so hard?
I know this because Tyler knows this.
Inflation?
Not in Los Angeles.
You can still buy Subway foot longs for $5.00
Gatoraid and Monster Energy regularly on sale for $1.00 each
Outlet malls are everywhere, where you can buy name brand clothing cheap
Jos. A. Bank constantly running "buy one get one free" sales on men's suits
Toyota hybrid sales down 15% year over year, John Elway's dealer in Manhattan Beach starting to hand out huge rebates on the 2012 Prius
And unleaded gasoline prices are pretty much collapsing all around Los Angeles County:
http://www.wallstreetbear.com/board/view.php?topic=90954&post=328929
Good point
Bad argument! You both know better.
Wow...maybe everyone will be stupid enough to move to LA.
Jesse posted this link the other day.
http://www.youtube.com/watch?v=xzORu1dqEE0
Heard of a van that is loaded with weapons
packed up and ready to go
Heard of some gravesites, out by the highway
a place where nobody knows
The sound of gunfire, off in the distance
I'm getting used to it now
Lived in a brownstone, lived in the ghetto
I've lived all over this town
This ain't no party, this ain't no disco
this ain't no fooling around
No time for dancing, or lovey dovey
I ain't got time for that now
Transmit the message, to the receiver
hope for an answer some day
I got three passports, couple of visas
don't even know my real name
High on a hillside, trucks are loading
everything's ready to roll
I sleep in the daytime, I work in the nightime
I might not ever get home
This ain't no party, this ain't no disco
this ain't no fooling around
This ain't no mudd club, or C. B. G. B.
I ain't got time for that now
Heard about Houston? Heard about Detroit?
Heard about Pittsburgh, PA?
You oughta know not to stand by the window
somebody might see you up there
I got some groceries, some peanut b_tter
to last a couple of days
But I ain't got no speakers
ain't got no headphones
ain't got no records to play
Why stay in college? Why go to night school?
Gonna be different this time?
Can't write a letter, can't send a postcard
I can't write nothing at all
This ain't no party, this ain't no disco
this ain't no fooling around
I'd love you hold you, I'd like to kiss you
I ain't got no time for that now
Trouble in transit, got through the roadblock
we blended in with the crowd
We got computers, we're tapping phone lines
I know that ain't allowed
We dress like students, we dress like housewives
or in a suit and a tie
I changed my hairstyle so many times now
don't know what I look like!
You make me shiver, I feel so tender
we make a pretty good team
Don't get exhausted, I'll do some driving
you ought to get you some sleep
Get you instructions, follow directions
then you should change your address
Maybe tomorrow, maybe the next day
whatever you think is best
Burned all my notebooks, what good are notebooks?
They won't help me survive
My chest is aching, burns like a furnace
the burning keeps me alive
Try to stay healthy, physical fitness
don't want to catch no disease
Try to be careful, don't take no chances
you better watch what you say
http://www.absolutelyrics.com/lyrics/view/talking_heads/life_during_wartime
All of Subway's cold-cut meats are turkey-based, I would wager that you didn't know that. Why? So they can keep the costs low.
Turkey Bologna: Mechanically separated turkey, water, contains less than 2%
of: salt, corn syrup solids, potassium lactate, dextrose, sodium diacetate, sodium erythorbate, sodium
nitrite, flavorings. Turkey Ham: Cured turkey thigh meat, salt, contains less than 2% of: potassium
lactate, brown sugar, sodium tripolyphosphate, dextrose, sodium diacetate, sodium erythorbate, smoke
flavor, sodium nitrite, water. Turkey Salami: Dark turkey, mechanically separated turkey, water, salt,
contains less than 2% of: potassium lactate, sugar, sodium tripolyphosphate, dextrose, spice and
flavorings, sodium diacetate, sodium erythorbate, smoke flavor, sodium nitrite.
Beat me to it.
Go long sodium derivatives.
WIC only stores in CA are blowing it out of the water too.
I'm surprised they are still in bidness.
Way to cherry pick the ouliers to support your case.
Right, cause the quality of crap they move through fast food joints just keeps getting better and better. You pay the same, yet the quality contiues to erode. Joke's on you. Just eat your $5 bill; cotton can be quite filling and linen is great for the GI tract.
Do not forget Keystone tall boys @ 1.09
Used to be $0.99 though.
No inflation in California? Wrongo Robo!
From the LA TImes, November 7, 2011:
In California, a gallon of regular gasoline is averaging $3.838, down slightly from $3.841 a week ago. Again, that is substantially higher than the old record for this week of the year of $3.231 a gallon set in 2007.
http://latimesblogs.latimes.com/money_co/2011/11/gasoline-prices.html
Gasoline set a record for October this year in California, higher than even 08.
The article goes on: "Demand for gasoline is down in the U.S. by 4% compared to last year, but global demand has more than made up for that," Kloza said. "If you want to blame someone for the high prices, blame South America." Biflation, babe
Another expert said that gasoline prices could be even worse than they are right now, given that world oil prices are again on the rise.
So before you promulgate your clap trap, remember you're sticking your head deeply in the sand and trying to get others to do the same. And that is a disservice to the country. It's anti-American
John Elway lost millions when he was duped in a Mafoff like Ponzi scheme...
As player personnel for the Denver Broncos, he's getting his balls broken because he's made it clear that he doesn't want Tim Tebow... He would love Denver to lose games so they could get into the bidding in the "Suck for Luck" sweepstakes...
But Tebow has won 4 of 5 games now since becoming starter for Denver...
http://fantasy-sports-nation.blogspot.com/
Anyway - Child Please... Don't start throwing John Elway into discussions...
My 3 pack of Budweiser tallboys went up 50 cents in the past 3 months. : (
I'd also like to add that Subway isn't a sandwich, it's bread with lettuce.
"Where's the Beef"
~Clara Peller
http://www.youtube.com/watch?v=Ug75diEyiA0
budweiser???????????????//
Because Subway footlongs, gatorade and monster energy is actually food that can sustain life. Right...
MIT's billion prices project shows an index of 104. So there is inflation and it is too high
http://bpp.mit.edu/usa/
"violent way and facilitate severe inflation or even hyperinflation."
... unless we have a deflationary depression (ala 1930's) ...
Fuck you keynes. The whole postulate of Keynes is faulty. When corruption is the norm confidence is lost. How could you mr Keynes restore confidence in a corrupt system to the core.
In his earlier days Keynes wasn't such a moron, he actually understood the danger of inflation. Keynes stated in his book The Economic Consequences of the Peace: "Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the weath of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
Then he developed an addiction to drinking fluoride and we all know what happened from there.
The one thing Bass is wrong about is he thinks Germany will pull out of the Euro because "it's not good long term for Germany." But as Bass stated way back in 2010, Germany already went all in. Germany will ride the Euro out until hyperinflation because by pulling out, the entire banking system of the Western world would collapse.
And the banking system of the entire western world won't collapse with hyperinflation?
@Honey Badger
I'd make the argument that it WOULDN'T (collapse)...
Follow me...
You said "banking system" (collapse)...
Right now, you basically have a situation where the debt ponzi continues to be prolonged (read: 'supported') by marginal bouts of printing the COUPON (the monthly nut needed to extend debt service)... How long that continues is anybodys guess, but I can see it getting sustained for as long as the phase shift from inflation to runaway hyperinflation occurs...
Using the only real history anyone really knows or talks about (the Weimar hyperinflation), the "runaway" part happens rather quickly (within months)... Whereas, the inflation part may precede that by, say, a coupla three years or so...
So in that coupla three years or so, if the central banks know what the end game is, they could use all their powers to basically PRINT themselves a claim on the physical markets for things... CRUDE, GOLD, SILVER, COPPER, whatever...
I actually think that's what's happening already...
In any case, if & when it all blew up (due to hyperinflation)... The bankers would still be at the top of the heap because they would have managed to stack pallettes full of all the physical they needed while everyone else was cashing out their TRADITION to get by because they weren't prepared...
Bottom line?
1. If you're a bankster, you're good as GOLD (literally)
2. If you hold a 401K (you better get it into gold... NOW (& have a supply of food)
3. If you're poor... It's too late for anything... But you'd better use your food stamps to stock the pantry until the s***storm passes over...
POTEMKIN VILLAGE IDIOT
... and what does Honey Badger eat for the next two week? You guessed it; Cobra!
(forgot about Honey Badger - thanks for the laugh HB & PK)
http://www.youtube.com/watch?v=4r7wHMg5Yjg
The world's monetary system is one giant fiat ponzi scheme and the newly printed fiat is like the new investors in the ponzi. Once the new fiat stops entering the system, the ponzi ends. If the new fiat keeps entering the system, hyperinflation is the end result. So either way, the entire western world's banking system will come to an end, it's just a matter of if the ponzi ends now by choice, or later through the force of hyperinflation. I'd don't see the politicians and bankers as wanting to give up control of the printing presses, so I think they'll push the end of the ponzi off into the future as far as possible. The best option, though, would be to end the ponzi today because then resources would be stopped from being misallocated by the ponzi and productivity would boom. The stopping of misallocation of resources would clear out the malinvestments created by the ponzi which would certainly have very painful short term effects, but it's a matter have having those painful short term effects now, or keeping the ponzi going by creating even greater malinvestments and having even more painful short term effects later. One way or another, the malinvestments will be cleared and to put it simply the choices are less pain now, or more pain later.
Well put Silver Journal - your comment got me thinking about the nature of debt and the band of theives in charge.
One definition of debt is the willingness to reap rewards now (or at least offset pain) in exchange for greater cost later.
Those who put our world in its current state have illustrated their compunction in this manner. Thus, there is little likelihood that those individuals would alter that pattern. It would be like an alcoholic deciding to stop on the 10th beer. Or Madoff deciding to come clean prior to the Ponzi endgame.
In my opinion, there will be no reckonning and shorter term pain prior to the big Keynesian endgame.
We are royally f-ed.
Inflation? Deflation? Look everyone. My stategy these days is simple. Short the market and offset that risk by hedging yourself with physical gold/silver assets along with zero debt of course. (They can take your house from you.) It could be a win/win. loose/win or win/loose but likely won't be a lose/loose. Play the percentages when you live in a casino.
lose*
Helicopter Ben: Europe needs you again. They need more money from the American Taxpayer. Please let us do what Germany is afraid to do and bail them out. Your first Priority is JP Morgan and Goldman Sachs and to help all other countries except for the USA, which is the number one agenda for The Government of the United States / Government of Insider Trading for the people everywhere accept the USA by the people. Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went http://www.zerohedge.com/article/exclusive-feds-600-billion-stealth-bail...
Rules and laws only apply to keep the masses under control. The higher up you go, the less rules apply to you. The higher your group is the less the rules apply to you. It doesn't matter if you are talking about the study of Economics, Ethics or the "science" of global climate change without concidering the influence of the sun over the last billion years.
You learn it growing up and it is all around you. The star of the football team is caught drinking before homecoming. His punishment will be according to 1. Is he the best QB in the conference or the best QB in the state. 2. Is the team mid pack conference or ranked in state. 3. How much football is valued in the communnity, (Texas vs the rest of the country).
Kyle Bass understands human nature. (Edit: he is commenting on the elites play to remein in power)It's to remain in financial power through political brinksmanship, where rules need to be written, changed or ignored as we go otherwise it's doomsday! (and then you won't be reelected)
What is this Kyle Bass Hero Worship Week? I see stories everywhere. Any fool that hoards millions of nickels isn't the brightest bulb in the room. What's next Kyle? Air, water or cabbages?
Below Zero,
No he's the brightest Billionaire in the room.
There is 3x's as much copper in a nickel as nickel.
If your a Billionaire, I am sure you can get your nickels sold when the prices of both go up.
Remember, HE ain't one of the little people.
Unfortunately there is a law that prevents the smelting of pennies and nickels to extract their core metals for profiteering. As long as there is a law in place a nickel will always just be worth 5 cents and will devalue along with the dollar. Besides.. who wants to pay someone to guard and store your hoard when you are out on the town?
Ever hear of Deutsche Marks & Rentenmarks?
In a a fiat currency collapse, a new form of currency is issued... This effectively negates the laws that are applicable to the previous currency... Now - one may argue that TPTB could write another law that "applies" the former laws (such as you mention) to the new currency, but historically that has either been unenforceable, or impractical...
Instead... This is true, normally "coinage" has retained it's ratio value to what I'll call PAPER PAR (the 1.00 value of the paper currency)... IOW, if a nickle represents .05 of a dollar (PAPER PAR)... Then, if the dollar is re-introduced as a NEW DOLLAR (as was previously the case with Deutsche Marks/Rentenmarks, or Cruzado/Cruziero/Real/New Real (Brazil) changes that have gone on constantly for the past 25 years... or whatever... A nickle COIN, afterwards, would still maintain its standard .05...
So think about it... If the dollar gets DEVALUED by, say, 100... Then, a nickle COIN still represents .05 of that afterwards (because it is too bothersome to otherwise control, and besides, most idiots don't have a lot of nickles around anyway except for the cushions of their couches), then your option payout on a single nickle amounts to roughly 5 dollars... And that's TAX FREE, because you could go down to your supermarket tomorrow, hand the cashier $2, and ask for a roll of nickles...
Now if you want to take that to extremes (as in Weimar), you're talking TRILLIONS...
In any case, THAT is what Kyle Bass KNOWS (which YOU think is just a stupid hassle)... I''ll buy Bass & FADE you on that option...
POTEMKIN VILLAGE IDIOT
The thing that prompted Bass to purchase the nickels was the content and not your speculation as to whether the nickels would or would not get devalued if a new dollar is ever issued. Since it is a criminal event to smelter nickels for content Bass is either an idiot, contemplating criminal behavior or looking to change the law. Changing the law will cost more in lobbying payola than the million dollars that Bass has invested in his 20 million nickels. Besides can you imagine Kyle Bass gloating over his stash of nickels and daily trying to caress each one in his palm like Midas? Reality is he made a relatively small investment to play a huge joke on unsuspecting fools like yourself.
At one time it was illegal to melt US silver coins, moron. When the metal becomes expensive enough, melting will proceed, openly or on the black market. Either way there's a market for Bass's nickels - he doesn't have to melt them himself, moron.
I am aware of the history on melting silver coinage, dummy. That is why I have mentioned getting the law changed, dummy. Since there is no guarantee that melting nickels ever becomes legal again since the law was passed to prevent their smelting when prices spike it appears that you are advocating that Kyle Bass engage in criminal behavior, ala the black market, for him to exit his massive nickel joke. Participating in the black market to unload nickels in order to skirt the law would be a criminal event not unlike laundering money. If things slow down for Kyle will you be advocating that he start holding up convenience stores to make ends meet, brainless one? For your nonsense I award you the 'Wooden Nickel Award" for having a tree stump in place of a brain! Kyle will be so proud of you.
When you really understand the mechanism of precious metal coinage, you'll be red-faced. Whether you come back to admit it or not will the be the determinant of your honesty. Melting of the nickels is not necessary to realize their value, just as melting of 1964 silver U. S. coins is not necessary for their use in trade. Go to any farmer's market and you can load up on veggies for 4 silver quarters. In your mind that's $1.00. It's not in actuality. When/If the Treasury issues "nickels" in any composition other than the current one, you'll find the laws against melting old, real nickels irrelevant. As a matter of fact, they'll welcome your destruction of the old nickels since their scarcity will prompt the public acceptance of the "new" nickel. It's all part of the plan. On second thought, never mind. I'm done.
Rocky Racoon is so fucking right it isn't funny...
Mechanisms bitchez... (on ALL levels)... Let me cite 2 examples...
1. Let's take the case of ARMAGEDDON... Do you REALLY think that there are laws on the books that will be enforceable?... HELL NO!... Kyle Bass could gleefully slag his 20 million nickles into bullets to machine your sorry faggoty ass ass into the ground without remorse...
2. For the more POLITICALLY CORRECT out there... I'm going to flip the omlette... I INVITE you 'geniuses' to describe to me here, right now, IN WORDS, how your 'New World Order' (based on a devaluating PAPER currency), is going to benefit the bottom lime of my wealth...
Responses coming in 5...4...3...2...
POTEMKIN VILLAGE IDIOT
I actually agree with you, but I think it'd be fun to try and take the counterargument, as keeping limber is a good way to prevent ass-scalding.
If you want to play NWO fiat-pumping roulette, there are a few ways to win, though they are dangerous to anyone who isn't watching like a hawk. I actually think that if you have the timing of a maestro (which I, sadly, do not,) there is still room to bank huge returns before you convert to commodities.
First, I think there is more can-kicking left. Ol' uncle Warren may be right in his $5 Billion BAC move, if he bails at the right time. We've all felt the effects of the 2008 crunch, and people are not ready for another, even worse round. The politicians know this, and are looking towards re-election in 2012. They will not let BAC fall, and Americans have been programmed for decades to have shorter attention spans every year. As time passes, and the sky does not fall, BAC stock price will rebound. NFLX will rebound as well- the price hike wasn't that high, and people, given the choice between going out in the cold to rent a movie during the winter, or just doing it from the couch, I'm betting that the stay warm lazy option will bring suscribers back. Hell, I never even left them- $5 a month is nothing at all, I spend more than that on caffeine every day, and it beats the hell out of aimlessly meandering down aisles of crap at the local grocery store (the only video rental place in town.)
Retail returns will be better than expected for the Christmas season this year- people are tired of doom, and are conditioned to spend their way to happiness in the US. It's not a rational move, and it will cause huge problems for a lot of people in the late winter and spring months, but it'll happen as sure as the sun will rise tomorrow. All the newly converted savers will blow thier wads to get little Timmy a new bike and a PSP, and Susie that American Girl doll she's been wanting because she's been so good this year. In the back of their minds, they'll know it's the wrong move, but it won't matter. Normalcy bias and the looming possibility that it may be the last big Christmas for their families will make this one a blockbuster. The rationale will be that they can make it up with their tax returns- but they won't. That'll be delayed Christmas for Mom and Dad- after all, it may be the last chance to upgrade the family car, or buy a Kindle before things get *really* bad.
Around Easter, it's going to be "doom on" once again, as the holliday euphoria fades, and reality begins to kick back in. Utility bills that were neglected during the winter months because they were legally prohibited from disconnecting them for non-payment will have to be dealt with, probably with a payment plan because J6P blew his tax return on a big-screen to watch the Superbowl and the new iPhone. #OWS protestors will start returning to thier posts, as the winter chill eases. London and Rome will burn on the 6 o'clock news.
This is the cycle for another ??? years. I'm going to go out on a limb, and predict that it'll be three years. Volitility will skyrocket, and swings of 1000+ points a day in the DOW will become the new normal. It'll be more of the same old shit, on a different day, until someone shoots an archduke, and then we'll have war.
During the opening phases of the war, you can cash in on defense stocks- Raytheon and Gamber-Johnson in the US, and BAE in the eurozone. The war will start in Europe, and burn like wildfire, while the US tries to stay out of it because it has become a political third rail. USD and PMs will soar, while the equities remain flat. China will introduce a new fighter jet that challenges US air superiority, and Russia will use sunfire missiles against the US navy in the Mideast when tensions reach a breaking point with Iran.
This is the time to convert your fiat gains into commodities- arable land, canned goods and EMP proof energy sources. Weapons will already be gone, but you already have those, right? If you don't, make nice with your neighborhood redneck.
China will ally with Russia, and their opening salvo will be an EMP strike against the mainland of the US. Overseas troops will continue to fight, and make a decent showing, but the mainland will be severely damaged. It will not be a total loss, but the the Eastern seaboard will be a wasteland. No one will take the mainland of the US with ground troops, though portions of the border may be altered. Humanitarian aid from other nations will be sent in, but geographic location and ethnic makeup will determine whether the aid offered is accepted with open arms, or repulsed.
War will rage until it's done. China and Russia will be the new superpowers, though China will take it's orders from the Kremlin. Europe, as usual, will be a smoking and mashed-up crater, with territory lost to the new Islamic Caliphate. The British, French and Germans will control what is left of the Eurozone, and the US will have been set back 50 years. The money play will be for those who have physical gold and silver to trade, as it will be required to conduct commerce with either of the new superpowers- China will require silver in exchange for textiles, and Russia will demand gold for oil. The US will revert, with a lot of difficulty, to an agricultural, steel and timber provider to the world. Africa will be the new cheap manufacturer to the world, under the direction of the Chinese. The Caliphate will do nothing of real value, but they will eke by on dwindling oil reserves.
Putin will be the new Tzar of Russia, and all pretense of communism will be abandoned. China may or may not retain it's communist government in name, but it will revert to a fuedal structure in any case. The new Chinese dukes and marquis (whatever they may be called) will develop a mania for collecting western memorabilia, with top dollar being paid for anything relating to cowboys and/or the roaring '20s.
Europe will re-unify, and the US will close it's borders, levying tarrifs on all other countries while it rebuilds. The original constitution will be restored, and the industrial revolution will reoccur.
Eventually, we'll do it all over again, and again, and again. Maybe someday, someone will build an excellent ship that will shoot us off into the furthest regions of space, and we can all take a breather until it's time to take up the fighting again.
I know that is long-winded, and ultimately ends up with doomin' and gloomin' again- but I'll point you back to the beginning, where a nimble boy might earn his fortune by investing fiat dollars in equities for a while, and thus control more tangible assets in the end. For my part, I'm sticking with dollar-cost arbitrage, and just collecting as much as I can to ensure that my family and I make it through the chaos to come.
At this point, I don't even care about wealth, I just want to ensure that my family survives.
Good post and not implausible
I only called you a moron since you're so clearly wrong yet strangely insistent. See post immediately above this one. Your 'engage in criminal behavior' bit is childish and contrived. You can stop holding your breath now.
Hey "Wooden Nickel Award" winner you are the one bringing up using the black market and pretending you know the future about the laws on smelting nickels. You lose but you did win the "Wooden Nickel Award" for stupidity. You probably were a buyer of silver at fifty bucks too. That had to make old "Nikyle" Bass smile.
I guess you're right. I checked, and there was no market at any price for silver US coins before they allowed smelting. Anyone who tried to traffick in them was summarily executed.
There are different interpretations, though.
Maybe he's a revolutionary trying to bring on a more rapid collapse of US government by bankrupting them with minting expenses.
Maybe he's expecting a deflationary collapse, and he's going to pay his army of retired servicemen with nickels.
Maybe he's hoping government will offer a buyback program so they can melt the coinage for minting coins with higher face-value, like quarters and silver dollars.
Maybe he's trying to engineer another Waco-style standoff where the Secret Service and FBI surround his compound with tanks because of suspicion that he MAY be melting coins.
The world's a complicated place and all. Open your mind.
Another option:
The only nickels with silver content were minted from 1942-1945. There was a steel one in there somewhere, too.
Why would you replace the nickel with silver? Simple- nickel was needed for the war effort. In the very likely event of WWIII, nickel metal will again become a hot commodity, and the US gov't will have no problem running a drive to pull exisiting nickels out of circulation to melt them down themselves, likey replacing the coin with something with a zinc core, like the other coins in circulation.
This doesn't matter much if you turn your nickel stash in- but there was another, similar drive during WWII in which people were encouraged to turn in any iron or steel they had to contribute to the war effort. This lined up with the beginning of the end of blacksmithing as a trade, and most anvils were melted down to be repurposed as tanks or other war machines. The result, 65+ years later, is that an old anvil (which works better than a new cast iron one because it was forged and had a tool steel top forge welded on) goes for about $6 a pound, where basic steel is only worth about $.60 a pound.
At a certain point, whatever nickels are still left will fall under Gresham's law, and they will develop not only intrinsic, but also numismatic value- just like pre-'64 silver. There's a possibility that pre-'82 pennies will follow.
I'm not hording nickels, myself- though I do seperate them and toss 'em in a seperate change jar in case I change my mind later, but I am with Bass on this one. The worst case scenario is that you'll cause a lot of work for some poor bank teller when you go to cash the suckers in for $.05 a piece. It's basically a hedge with no downside risk, so why not play- it's a cheap investment, after all. At worst, you just took up some storage space for a while, and didn't earn a return- but that's better than the tattered remnants of my 401(k) has done in years.
1. Where does a bear shit in the buckwheat ?
You could use the exchange rate of the ReischMark to the French franc when the Nazis invaded France.
2. When a German soldier went into a French bank to exchange Nazi toilet paper for francs, what was the exchange rate ?
Answers: 1. Anywhere he damn well pleases.. 2. Any rate a bullet will allow...
@Below Zero
FUCK LAW!
Most respectfully, of course om
There's a law against having a nickel of reefer too. :)
Doesn't stop so many.
Nimrod.....Is anyone melting sliver dimes? no they are just worth more.
Didn't ding you... but perhaps I should. God save us from the "chosen elites". You know -- the ones at Goldman Sachs and elsewhere claiming to work directly for the Allmighty. Those REALLY smart guys. Same azzholes that got us here. The "best and the brightest" amoung us.
Whether or not Kyle is bright (he is) misses the point. Kyle is honest. Has courage and conviction. He puts his money where his mouth is. He tells everyone to "man-up". Refreshing to hear someone articulate common-sense and make it sound "new".
And it doesn't take a genuis to see where the chickens will roost.
I like the guy, too.
With his money, he could just buy gold and flip everyone else the bird. The nickel move is a brilliant play if he is trying to show people a possible exit door. That's pocket change to him, but to others, a million bucks is an unimaginably vast sum, and it carries a lot of weight with the common folk. There are a lot of people who can't afford much more than gas and food these days, but everyone gets change back now and then, and even the most destitute can throw a handful of nickels in a can now and then.
Grandpa did okay holding back siver dollars and halves back in the day- I bet there are a lot of retired folks who can eat porkchops instead of catfood now if they minded Gresham when it mattered. A paint can filled with Morgan dollars will keep you fed for a while today. The mechanism doesn't even matter- it's just the fact that he is advocating purchasing something that is within reach for everyone that has a higher intrinsic value than face value.
I remember when I was about 12 or 13, I had a buddy that would always check his change carefully, and he got really excited whenever he found a silver coin, and tucked it away somewhere. I asked him once what he was so worked up about about, and he explained that it was worth more. This was in the early or mid '90s, and the markup was underwhelming, to say the least. I let it go over my head, and didn't bother- it seemed more work to ride my bike to the local coin shop than it was worth. After all, tripling the value of a quarter doesn't amount to much.
But I looked at my change after that, and gave a little smirk whenever I found a silver coin- right before I spent the sucker at face value. I was smirking because I was thinking about how excited that guy would get if he got it in change someday. Yes, I am an f'ing idiot sometimes. I bet I recirculated about $2000 in silver over the years, one coin at a time, and recently have bought that and more back at $30 an oz. or better.
Hate to do that again. Could have transmuted all those $.74 quarters into $7 quarters, just by setting and forgetting them. How dumb will the naysayers feel when those $.065 nickels are worth $.65, or more- especially when you can buy all you like at a rate of 20 per dollar right now.
When you don't kow who or what you are talking about it is best to shut up.
"you can't fix an excess debt problem with more debt..."
Absolutely right! You can't put out a fire by throwing gasoline on it, nor can you bail out a sinking ship by scooping water from the ocean into it.
Hate to nitpick, but I'm just pointing it out so you don't use it again. I can put out fires all day long with gasoline- the vapors are flammable, but the liquid is not. Just don't do it on a hot day, or you'll be a crispy critter.
I made a bunch of activated charcoal this last month using the same principle- you can smother a roaring fire with dry leaves, and slow the burn to a charcoal-making crawl. High quality stuff, too- far finer and more pure than the stuff you get in bags at the store.
It's not a can anymore; it's a 10 ton drum.
The USA Government is just proving the inevitable. The American people are smarter and do not require their assistance in anyway and their only function is to facilitate help to other countries.
I wish you were right. 100 million+ Americans get a check from the federal government every month. Millions more live on various black markets that are made profitable by those 100M+ checks. Probably the majority of those 100M+ live on the margins now, and prices for necessities are rising in the face of inevitable 'austerity'.
This dependency is unAmerican and unnecessary, but we are shackled with it. Millions have been trained to rely on others for their basic needs. When those 'others' are faced with financial destitution, tax revenues will dry up as more and more productive people choose to become independent contractors and tax outlaws. And either borrowing costs rise, or inflation erodes purchasing power, screwing those on the margins, already under pressure even as this whole mess is just starting to really unfold.
For me, sound proofs that our 'leaders' could care less can be found in many places, but this one strikes me as particularly repellent: As food costs rise, the government is doing everything it can to centralize and standardize food production, actively discouraging people from being food-independent. Obama wants to send his control freaks into the hinterlands, setting up 'rural councils'. And he wants to require every piece of farm equipment to adhere to the same licensing and standards as over-the-road commercial trucks. One might argue that they are trying to foment some kind of rebellion.
DO NOT touch my tractor. Period. DO NOT attempt to tell me that I may not use my tractor anytime and in any way I so choose.
A girl has to draw the line somewhere. This is it.
If I was a billionaire I'd hate to have a nickname like "nickels"
BKbroiler
If I was a billionaire I'd hate to have a nickname like "nickels"
IF I was a Billionaire, you could call me ANY damned thing you wanted.
Billionaires make up their own nicknames.
Back in my early 20's, I knew this knockout chick with... Let me give you a hint... She had couple of major-league yabbos...
In any case... She was nicknamed "dimes" (by her girlfriends)...
I would have love to verified, but alas was never permitted to have carnal knowledge (because my girlfriend at the time was one of the aforementioned girlfriends)...
Thus ends my HEADS & TAILS story on nickles & dimes...
POTEMKIN VILLAGE IDIOT
I have been readig these pages for a while And many other commentaries on the current Crisis
I am in the process of studying the most recent BIS DATA http://www.bis.org/ June 2011 published October 2011
And THAT was an EYE-OPENER : GUESS .. WHO is the biggest CREDITOR in this world ? Also vis a vis the World minus Europe ?
TOTAL EXTERNAL CLAIMS ON ALL COUNTRIES IN THE WORLD : 31.904 Trillion USD Of this owed to EUROPEAN BANKS : 19.662 Trillion USD
European Banks have thus outstanding DUE 61,63 % of ALL CREDIT in this world !
How much of this is owed by European Countries to EUROPEAN BANKS : 9,736 Trillion USD
How much does the USA owe to EUROPEAN BANKS : 3.776 Trillion USD How much does Europe owe AMERICAN BANKS : 1.439 Trillion USD
EUROPE PLUS : 2.337 TRILLION USD USA MINUS 2.337 TRILLION USD
How much does JAPAN owe to EUROPEAN BANKS : 0.429 Trillion USD How much does Europe owe to Japan : 0.797 Trillion USD
EUROPE MINUS 0.368 TRILLION
How much does USA owe Japan : 1,028 Trillion USD How much does Japan owe to USA : 0,298 Trillion USD
USA MINUS 0.73 TRILLION USD
The USA thus is DUE over 3 Trillion USD to EUROPE and JAPAN .. CHINA doesnt disclose what it is owed but EUROPE has more money due from the USA than CHINA and JAPAN have .... combined ! THOSE ARE THE FACTS !
And there was much interesting stuff in these pages !
My conclusion is that the current "EUROPEAN CRISIS " is an ANGLOSAXON mainly USA DIRECTED COVERT OPERATION ATTEMPTING TO DESTABILIZE EUROPE . The DATA SPEAK FOR THEMSELVES ! THE ACTIONS BY THE USA INCL THE MEDIA COVERAGE AS WELL AS OTHER OCCURANCES ( GRADINGS etc ) CAN ONLY LEAD TO THIS CONCLUSION !
MY SUSPICION IS THAT THE DERIVATIVE MOUNTAINS BY THE MAIN US BANKS ARE USED IN ABOVE OPERATIONS ... SIMPLY BECAUSE THE USA DOES NOT HAVE THE CASH NECESARY TO DO AS IT WANTS OTHERWISE !
But go to the website Yourself .. if anyone doubts what is presented here
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/EXTDECQEDS/0,,menuPK:1805431~pageP
K:64168427~piPK:64168435~theSitePK:1805415,00.html
@pineyard
Thanks for this link. I would like to add to your argument, which I agree with, a question:
does everyone understand how serious the loss of the Euro would be? I don't have any idea except that this is not really an option no matter how ugly things become-----a 10 on the Richter is not something I want to experience
thanks pineyard om
pineyard
Without counting money owed to the Fed, your numbers are meaningless.
P.S. We will print the bill for your protection from the Russkies since WWII and will be happy to take gold as payment.
Have a nice day.
Bailing out crony banksters has nothing to do with Keynes in my opinion no matter how often they say it.
"Bailing out crony banksters has nothing to do with Keynes"
It also has nothing to do with Capitalism.
Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can,
I disagree. This is no longer Keynesianism. Keynes never imagined the US government living perpetually on borrowing. He never imagined the US government being 100%+ GDP in debt with the Fed printing money and buying more of it just to keep the government operating and keep Treasuies from imploding.
Keynes advocated temporary government spending to boost the economy out of recession. He never advocated bailing out an insolvent government with no possibility of ever making it solvent again. He never advocated bailing out insolvent banks. He never advocated kicking the can just to keep credit markets afloat and keep bankers in bonuses.
Precisely, Keynes argued to spend out of recession, then balance the deficit during prosperous times. He gets a bad name because MMTheoriest/socialists only use half the equation.
Marx and Engels never invisioned Stalin murdering 30 million people to install 'the Workers Paradise' either. Political and Economic theory must be based on the realities of human nature to be valid.
Did anyone with a clue about the nature of politicians expect them to 'balance the deficit during propsperous times'?
Central Planning has never and will never work. Power to the People!
Yes. I posted earlier on this thread: Keynes was all about fiscal "pump-priming" to stimulate demand (from the depressionary 1930s). The world we live in today added the Friedman version aka MMT aka "supply-side" economics which advcates monetary expansion via a top-down appraoch aka trickle-down. This was added on 30 years ago during the Reagan-Tatcher era which was all a response to the inflationary 1970s.
So we have money printing from both ways fiscal and monetary. Nobody has a claim to the moral high ground here. It was all a bunch of near sighted approaches to larger issues which should have been dealt with. Like a rational energy policy. Instead they wrote the chapter of the beginning of the end of our system
Sorry, man. I should have read page 1 comments before posting.
I agree with you
Keynes approach was grounded in business cycle theory. it was symmetric AND anti-cyclical. meaning government "saving" during the good times and government spending during the bad times.
Symmetry and politics don't mix.
Bernanke's willful ignorance of business cycles (so Old Testament, said he) extends to the relationship between classical business cycle theory (Dewey et al) and Keynes. Of course, I expect no less from a multi-faceted self-revealing moron.
cog
And it has been argued that Keynes saved Wall Street and Corporate America's asses from the lynch mob.
So, chaos is fun?
Kyle Bass was wrong on Greece, which went not in default after all, but got a free haircut.
So, you think it's over in Greece? Sorry, but the fun and defaults have yet to come.
"Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can"
It's not just that. Under the cover of the can-kicking they're slowly transferring all the bank debt onto the public.
South Park - Economy
http://www.youtube.com/watch?NR=1&v=Upez33EGiRA
It's all about stupid creditors, gamblers, bankers, whatever making bad gambles and the stupid central bankers & politicians printing more electronic paper money to bail them out. Really no big mystery. When does it end? When the creditor of last resort goes bankrupt. How can someone with an electronic printing press go bankrupt? When they're no longer able to back their new electronic money with anything.
Fist, there is not a single person on ZH who understands how Keynesian policies were put into effect in 1930s and how they were PAID for. It certainly wasn't by borrowing and accumulating debt. Second, you can put a fork in the likes of Kyle Bass, Peter Schiff, Eric Sprott etc. READ Irving Fisher's blue print of the future from 1933.
linrom
1. Fist, I assume you meant first; otherwise what you and your pal do in your private time, I do not need to know.
2.there is not a single person on ZH who understands how Keynesian policies were put into effect in 1930s and how they were PAID for. It certainly wasn't by borrowing and accumulating debt.
So the U.S. did not run deficits and did not borrow during the 1930's. I guess we are all dumb here on ZH and all my JMK larnin' was fer not...
Irving Fisher? Isn't he the guy who said stocks had reached a permanently high plateau in 1929?
Glad he mentioned The Maestro Alan Greenspan who was knighted by Queen Elizabeth for his brilliance ... and the French enrolled Greenspan in their Legion of Honor.
Who knows, the Nobel Committee still has time to give The Maestro a Nobel Prize in Economics.
ZH has alwys been an excellent analytical blogsite with a pronounced and well defined belief that the current debt based global financial economy is doomed to painful deflation; that adding more debt to already overloaded ponzi debt is a sure formula for financial collapse. Now nearly three years after the 2008 collapse, here is what the MSM media says :
Wall Street Analysts Everywhere Are In Agreement: THE WORLD IS ENDING
Read more: http://www.businessinsider.com/apocalyptic-analyst-notes-2011-11#ixzz1eBGJDjgp
http://www.booktv.org/Watch/12768/Debt+The+First+5000+Years.aspx
Most of the posters here a re economic ****ts. They don't know the dofference between debt and banker monetarist polices.
Enlighten us, my fat fingered friend.
You start by ignoring everything that these self-serving reactionary hedge funds, money managers and financial speculators say and advocate; in particular, the pleathra of financial wisdom spewed from all the right-wing think tanks of which ZH is just another tool.
What we need is debt-jubilee, not gold backed money which is merely banker rouse to create debt-peons for another century or so as to allow bankers to distribute lumps of glittery bits of metal in exchange for work.
The greatest deficit in American understanding of the world appears to be history. Most folks just never bother. It's demonstrated better here because the posters tend to be a bit smarter and better informed than other places.
linrom, please describe this 'debt jubilee' we all need.
Private debt default. The government then implements a policy of high excise taxes, tariffs on imported goods,and jobs work projects by running deficits that are paid for by taxes paid by the rich. This is the American history from 1930-1950s and how US became an economic superpower until Kennedy started meddling with the tax code and war for profit.
And the $15 Trillion in Public Debt is serviced also by taxing the 'Rich'?
Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can, unfortunately the strength of every kick is getting weaker and weaker until one day, the can refuses to move, and it is game over.
- Tyler Durden
If only Tyler.
The can with each kicking has gotten denser. The problem for policy makers now is that both feet/legs are in casts from their repeated action and the can now has sufficient mass and momentum to chase these crippled policy makers down the road, steamroller style
http://www.youtube.com/watch?v=kQYdCQSGl5A&feature=related
I liken it more to rolling a snowball uphill. It starts small and easy and the farther it goes, the bigger it gets and the more potential energy it creates for a catastrophe.
A few hairs of the dog that bit you, what could go wrong.
Anyone know which BIS paper was attached?
http://www.bis.org/list/wpapers/index.htm
JP Morgan bidding on MFGs share of the London Metals Exchange? More manipulation?
But is there an accessible way to short Japanese bonds?
THIS ONE ;
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/EXTDECQEDS/0,,menuPK:1805431~pagePK:64168427~piPK:64168435~theSitePK:1805415,00.html
STUDY THE PAGES NUMBERED 9 B .. You will have to look at it for a while ..before the BIG PICTURE shows .. Pineyard
and finally .. the BIS DATA needs a long and methodical look .. so I am entering the data in my own Spread-sheets ... That will take some time .. but I think it is worthwhile .
Data cover most of the countries of the world.. You will probably even be able to see how it looks for YOUR OWN COUNTRY .. wherever You are in the World... Its GOOD READING .. FOR EVERYONE here on these pages
Kyle Bass is a billionaire investment banker... to him, you are simply an income stream and exploiting that is the core principle of his chosen profession. He's basically an investment banking slime bucket that happens to be more articulate than most... he serves no usefull purpose to society.
What's with all the Bass worship?
Who exactly do you think should be managing the money of large pension funds and the like? Retarded former New Jersey governors?
What's with all the Bass worship?
He's honest. At least, that's the only virtue I see that distinguishes him from other big money guys. There are a couple of those guys who are honest, and they tend to attact attention here.
(There's no point in getting all emotional about whether "finance" itself is a good or bad thing.)
rotflmfao!
Your the putz that didn't didn't do his research, you don't know shit about Bass obviusly. Bass went to Bear Sterns I beleive where he got started before the 2008 collapse and spoke to them to find out what their computer models were showing the real estate market growing at into the future. He TOLD them the model was wrong, showed the subprime and the stupid never ending appreciateing models, something like 8% growth plus per year forever. They brushed him off. People were warned, he also spoke to some congressional members and had been on many CNBC interviews SHOWING the problems not how to take advantage. He is the FURTHEST thing from a slime bucket.
And he made billions shorting them... so a good chunk of your /08 portfolio losses lined his pockets... so worship away.
Useful idiots all!
the only idiot would be greeting you in the mirror each afternoon when you wake up.
The above post was meant for Below Zero above - I did not reply correctly - he is the putz!
duh. because he's right. your focus is too narrow. once in awhile, divert your gaze from the tip of your penis.
you sound rather clueless. are you?
Sounds like it's your gaze (lips?) on the tip of Kyle's
Fuck off ; Who cares. Fuck GS and the likes, you think they frighten me. Stop that shit. Hell,I have a methodology that cares no fuck about goldman sacks. Watch your ass cause market is going to collapse. Fuck goldman sucks and the likes. If we had to trade together( message addressed to gs of course) I am sure I have more room to burn ass of GS. It is mathematical. I am prowd of being a mathematician.
if I was a woman, which I am not, I would have KB's babies. lots of them. Just sayin'..... ;-)
Don't know if we need to know your secret yearnings....
a store of value is only realised when it is sold. see how the gold bugs feel when italy asks for a bid on its $160bn of gold. you are not allow melt coins. and you will sell a nickel for a, eh, nickel.