• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

The "Dumb Money" Refuses To Play Along: China State Media Says It Won't Rescue Europe

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Sun, 10/30/2011 - 13:01 | 1826329 achmachat
achmachat's picture

Rollercoaster time!
I was wondering if I could make my clients pay me in ounces of gold instead of fiat.

Sun, 10/30/2011 - 13:29 | 1826390 Long-John-Silver
Long-John-Silver's picture

Back in '09 I put a sign up in my (Machine) Shop to stop people walking in with stuff they needed fixed. It reads:

 

Shop time is 2 Ounces Silver per hour plus tooling costs.

Gold is acceptable as well. WE NO LONGER ACCEPT USD.

 

 I've had a couple of people that actually came in with some small jobs and had Silver to pay me. Once I had a run of parts and was paid in American Gold Eagles. Putting that sign up was the best thing I ever did. It also stopped most people taking up my time wanting me to make a bracket or an adaptor and whining about my $80 an hour shop time when I quoted that. I would just as soon not deal with the public at large.

Sun, 10/30/2011 - 13:35 | 1826403 trav7777
trav7777's picture

China is saying, plint rike we do

Sun, 10/30/2011 - 14:30 | 1826479 TheLooza
TheLooza's picture

Chinese understand that the european plan is a completely wonton attempt to kick the can further down the road.

Sun, 10/30/2011 - 17:52 | 1826829 buyingsterling
buyingsterling's picture

Wonton!

Sun, 10/30/2011 - 13:41 | 1826423 achmachat
achmachat's picture

i think people here might accept that because of its novelty factor.

But I was just thinking... is it possible that it's an awesome tax loophole? If I get paid in, let's say 20 gold Canadian Maple Leafs, it's still officially a total of 1000 Canadian dollars, those coins being legal tender...

Sun, 10/30/2011 - 14:01 | 1826444 seek
seek's picture

That's been tried. The IRS was not too keen on it: http://www.lvrj.com/news/46074037.html

If you research this you'll find Kahre ended up convicted with nearly 50 counts of tax evasion in 2009.

The wierd thing is he was found not guilty in 2007. (I guess the IRS isn't subject to double jeopardy limits.)

Sun, 10/30/2011 - 14:33 | 1826465 saiybat
saiybat's picture

It's not about tax avoidance at all. If people are allowed to use real money for trade or in exchange for labor the whole ponzi will collapse. They're making an example out of him to send a message out to people trading in gold and silver. The only reason fiat currency is still used is because of force to preserve the ponzi and without force it's just worthless paper. Somebody tell me the definition of fiat.

You better believe they will come down hard on you because it's a threat to the entire ponzi.

Sun, 10/30/2011 - 14:48 | 1826519 LawsofPhysics
LawsofPhysics's picture

Exactly.  Once faith in paper is lost, the paper-pushing fucknuts lost the power.  Victums of their own greed if you ask me.  Crash the fucking system already so we can find out just what the "value" of everyone's labor really is.  Bring it!

Sun, 10/30/2011 - 14:59 | 1826529 saiybat
saiybat's picture

They'll start convicting people for debasement of currency for criticising the ponzi before they bring in real money that has value (it's done in China which is a model state). They won't let go of fiat currency without a fight and if it crashes they'll just replace it with an even bigger ponzi.

Sun, 10/30/2011 - 15:18 | 1826595 LawsofPhysics
LawsofPhysics's picture

Eventually enough inefficiencies in the state system result in the failure of the system to deliver basic necessities.  At that point there is only one option.  People die.  No amount of bullshit (paper or otherwise) will "provide" anything if the resources are simply not there.  Sort of like praying for rain in a desert.

Sun, 10/30/2011 - 15:17 | 1826594 lesterbegood
lesterbegood's picture

There is no law that requires you to file or pay income tax.

Sun, 10/30/2011 - 15:21 | 1826600 achmachat
achmachat's picture

as shocking as this may seem to you, there is a world outside the US.
I can assure you that over here there is such a law.

Sun, 10/30/2011 - 15:38 | 1826629 lesterbegood
lesterbegood's picture

I observed a jury trial of a Amercan citizen who was charged with 4 counts of failure to file. The jury found him not guilty because the prosecutor and the judge could not produce the law that required the defendant to file, despite being asked by the jury twice for the exhibition of such alleged law.

Sun, 10/30/2011 - 15:54 | 1826657 sabra1
sabra1's picture

Timmy G.?

Sun, 10/30/2011 - 19:01 | 1826910 eurusdog
eurusdog's picture

Well, why don't you try not filing or paying income taxes and see how that works out for you in the long run. Will give a new meaning to the term "bitchez" so readily used on this site!

Sun, 10/30/2011 - 17:30 | 1826803 earleflorida
earleflorida's picture

that's rich,... clinton "Mark Rich"

Sun, 10/30/2011 - 17:17 | 1826777 DCFusor
DCFusor's picture

Thanks for the tip, Long John.  I have a shop too - similar situation.

Sun, 10/30/2011 - 13:01 | 1826330 GeneMarchbanks
GeneMarchbanks's picture

They're missing the investment opportunity of a lifetime!

Seriously though, no shit...

Sun, 10/30/2011 - 13:02 | 1826335 SheepDog-One
SheepDog-One's picture

Whoever thought China was all-in on further funding Europes 50 year retirement and 6 months paid holidays at the beach was dreaming.

Sun, 10/30/2011 - 13:14 | 1826357 Yamaha
Yamaha's picture

Prior Socialist India also get it - so we will hear "no soup for YOU"!

Sun, 10/30/2011 - 13:28 | 1826386 malikai
malikai's picture

Women in China retire at 55. It's not about retirement or holidays. It's about posturing.

Sun, 10/30/2011 - 13:35 | 1826405 Ag1761
Ag1761's picture

Unlike Greeks though, they start work in China at 5. I reckon they earn their retirement.

Sun, 10/30/2011 - 14:48 | 1826515 john39
john39's picture

no jobs for them anyway.  besides, they are not getting rich off Chinese pensions.

Sun, 10/30/2011 - 17:59 | 1826838 laomei
laomei's picture

In state owned enterprises and official positions... yep, retirement's set at 55 and that's a fairly hard stop with little exception.  For men it's 60.  What do women want though? To boost it to 60.  It's all about making room for the younger generation and it works out fairly nicely.

Sun, 10/30/2011 - 13:38 | 1826411 mfoste1
mfoste1's picture

thought id throw this out there.....IMF planning new short term rescue fund.....http://www.yomiuri.co.jp/dy/business/T111029002454.htm

Sun, 10/30/2011 - 14:50 | 1826523 LawsofPhysics
LawsofPhysics's picture

Yeah, is that the one where Italy won't be eligible for help? good luck with that.

Sun, 10/30/2011 - 13:05 | 1826340 0cz
0cz's picture

Well at this point in China's history; they can either be the dumb money or the no money like everyone else.  They already fronted the credit and are using propganda to keep their slaves from becoming angry that they eat 2 cups of rice a day while they are paying for Europe to eat 4. 

 

Sun, 10/30/2011 - 13:07 | 1826344 bank guy in Brussels
bank guy in Brussels's picture

A bit off-topic but I know ZeroHedge readers will love this ...

On LiveLeak, video of a man and a woman having sex while skydiving, they start making love on the aeroplane, and jump while joined to one another, and a camera follows their love-making while descending ... softcore images only but some nudity, six minutes

Definitely the gonzo attitude that could fix the global financial crisis ...

http://www.liveleak.com/view?i=7af_1318741319

Found via a chain of links from the Drudge Report ...

Sun, 10/30/2011 - 13:14 | 1826355 knukles
knukles's picture

Moral of the Story.
The parachute fails to open signifying Greece fucking the rest of Europe to death.

Sun, 10/30/2011 - 13:30 | 1826392 FinHits
FinHits's picture

American proverb: If at first you don't succeed, try try again.

Greek proverb: If at first you don't succeed, skydiving is not for you.

 

Sun, 10/30/2011 - 13:31 | 1826394 peekcrackers
peekcrackers's picture

@knukles hahahah

+1 so true

Sun, 10/30/2011 - 13:20 | 1826371 smlbizman
smlbizman's picture

and i thought that was bird shit on my shoulder....

Sun, 10/30/2011 - 13:08 | 1826346 valley chick
valley chick's picture

Surely they can find an "all will be fine" at G20 meeting rumor....

Sun, 10/30/2011 - 13:42 | 1826424 Ag1761
Ag1761's picture

There will probably be a move to up the pickings by announcing expansion of G20 to G40. To join, new Members must promise 3 billion euro to the EFSF which they will leverage at 10 times and that will give them their 600 billion they are short. I think that sort of rumour might keep us going until next Monday.

Sun, 10/30/2011 - 13:12 | 1826351 cowdiddly
cowdiddly's picture

Maybe the should consider importing Opium to dull the pain in Europe in exchange for PMs. Return the favor after alll these years.

Sun, 10/30/2011 - 13:20 | 1826370 Uncle Sam
Uncle Sam's picture

Who says they're not?

Sun, 10/30/2011 - 13:12 | 1826352 knukles
knukles's picture

Well lah-de-fucking-dah. 
Deus ex machina incarnate diminimus

Sun, 10/30/2011 - 13:13 | 1826354 navy62802
navy62802's picture

Oh great, so the "China to the rescue" story can now be recycled at least one more time. That should good for a strategic pop in the markets when our wise overlords deem it necessary.

Sun, 10/30/2011 - 14:33 | 1826484 TheLooza
TheLooza's picture

I had the same sad thought. Whether or not china ultimately participates, im quite confident that the possibility of chinese participation will cost me thousands (more) sometime this month.

Sun, 10/30/2011 - 13:14 | 1826356 zorba THE GREEK
zorba THE GREEK's picture

Europe asking China for a bailout is like a Wall Street Banker asking a homeless begger

for $6 to buy his morning latte. 

Sun, 10/30/2011 - 13:16 | 1826360 Zero Govt
Zero Govt's picture

no Chinese take-away for Van Rompuy and Burosso

...you can always 'Eat Cake' boys 

Sun, 10/30/2011 - 13:44 | 1826429 Ag1761
Ag1761's picture

We can always eat Chinese, plenty to go 'round

Sun, 10/30/2011 - 14:58 | 1826541 Troll Magnet
Troll Magnet's picture

nah, i'll pass. too much lead in chinese peeps.

Sun, 10/30/2011 - 13:17 | 1826365 xcehn
xcehn's picture

There has to be some positive way of spinning this for the markets though. How about: China State Media Says Europe Fine Without Chinese Support.

Sun, 10/30/2011 - 13:18 | 1826366 Yellowhoard
Yellowhoard's picture

At some point, the Chinese will say, "ship us all of your gold and we'll write you a really big check."

 

Sun, 10/30/2011 - 13:38 | 1826413 peekcrackers
peekcrackers's picture

Agreed ..

or Hard landing on sand paper with your pants down

Sun, 10/30/2011 - 13:19 | 1826367 Incubus
Incubus's picture

If China won't bail, bernanke will.  Have you seen his forearms? Motherfucker can bail out anything you throw at him.

Sun, 10/30/2011 - 14:51 | 1826526 LawsofPhysics
LawsofPhysics's picture

Yep, followed by another bloody civil war in the U.S.  Fucking brilliant.  Bring it.

Sun, 10/30/2011 - 13:19 | 1826368 bank guy in Brussels
bank guy in Brussels's picture

There is 120 trillion in the world, roughly, in somewhat liquid investments, the total stock and bond markets: Private wealth, pension and insurance funds, et cetera ... a lot of institutional funds, but you also have the wealth holdings of the oligarchs around the globe.

Of that, 20 trillion plus in the EU, 20 trillion plus in America ...

As Nomura's Richard Koo points out, the game is really to recycle - squeeze - push some of that investment capital that is always floating around, into sovereign debt. There is always a lot of capital looking for a place to park.

Really, Europe mostly owes its debt to itself, and should find or solicit any needed new 'investment' contributions from its own private wealth stock, if these programmes are really going to be viable and appealing to anyone ... not from China or Brazil. Ditto the USA.

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