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The ECB Has Opened Pandora’s Box

Tyler Durden's picture




 

Submitted by Mark Grant, author of "Out of the Box and onto Wall Street"

The ECB has Opened Pandora’s Box

“I believe that banking institutions are more dangerous to our liberties than standing armies. “
                                -Thomas Jefferson

I am not going to speculate about anything this morning. No guesses about what the Finance Ministers might do on Monday, no simple addition or subtraction that the data used to forecast Greece’s return to a 120% debt to GDP ratio is a falsification of the numbers, no mention that only nineteen cents of any bailout for Greece would actually go to the country; I am not going to discuss anything except what the European Central Bank has actually done and what we now know with a one hundred percent (100%) certainty and the horrifying implications of their actions.

 

“There are no necessary evils in government. Its evils exist only in its abuses.”
                                -Andrew Jackson

 

The ECB, on its own and without judicial or parliamentary review, has swapped their Greek debt for new Greek debt that is not subject to any “collective action clause.” They did this unilaterally and without the consent of any other sovereign debt bond owners of Greek debt. They did this without objection of any nation in Europe. They have retroactively changed the indenture, the contract made by Greece with all of the buyers of their bonds, when the debt was issued. There is no speculation involved in these statements, there is no longer any guesswork on what might be; the ECB swapped their bonds for new Greek bonds with the assent of the Greek government and it is now a done deal. 

Having then done this; the implications must now be considered utilizing the clear light of unadulterated reason. The issue now is no longer a one-off Greek issue but a full on ECB issue. We know now that the ECB can retroactively change the rules, change an indenture, so that if the ECB can do this with Greece then it can certainly do it with any sovereign debt in Europe. If they can exempt themselves from a “collective action clause” then they can exempt themselves from any clause, in any sovereign indenture, for any European country. The fact that they are now clearly senior to any other bond holder, or more aptly put, that any private bond owner is now subordinated to the ECB is one consideration but hardly the most important one. The incredibly grim reality now is that any European and all European sovereign debt can have their indentures changed by the ECB when it is to their advantage. It is the “collective action clause” today but tomorrow it could be the maturity or the coupon or any other terms and conditions in an indenture. It is Greece today but tomorrow it could be France or Portugal or Italy. The “Rule of Law” has been abrogated and tossed aside in the name of political contrivance.

“Necessity; the tyrant’s plea.”
                               -John Milton

Since the ECB can now retroactively change any bond contract to whatever it likes and with any nation in its dominion then the valuation of European sovereign debt must be re-examined for what it really is which is no longer what anyone previously thought. Starkly put; the bonds issued by the sovereign nations in Europe are no longer pari passu, on equal footing, with the bonds issued in the United States. We have just passed a clearly defined “break point” where the legal rules were changed to the great disadvantage of all the private debt holders. The risk of ownership of European sovereign debt is now infinitely more dangerous in my estimation than it was last week. We still do not know if the IMF will demand and receive the same special treatment but I assert that it no longer matters. The actions of the European Central Bank are all that was necessary to radically alter the value of European sovereign debt and it is just not me but any number of large financial institutions that are in shock given what has happened with one of the largest and most respected bond investors in the world telling me that “financial repression is the softer word for it.”

Leaving anger and hostility aside; European sovereign debt must now be examined with a new set of metrics. How much yield would investors demand if an IBM indenture, as an example, had language that stated “This indenture is subject, at any time during the life of the bond, to any changes mandated by the Federal Reserve Bank.” Stated another way, what yields would be acceptable to bond investors if there was a Federal statute that said “All indentures in the United States may be changed at will by the Federal Reserve Bank upon their sole discretion.” No “Rule of Law,” no judicial appeal and a fait accompli whenever desired. This is, in terrifying fact, exactly what the European Central Bank has done and if we no longer know what we are buying and if the terms and conditions of an investment can be altered retroactively at will without the consent of bond holders and to the advantage of the ECB then either we should not buy these credits, as in Atlas shrugged, or yields should be in the mid-range of junk bonds because European sovereign bond indentures now are worth no more than the paper on which they are printed.

The European Central Bank, in a very misguided attempt to protect itself, has now opened Pandora’s Box. I doubt if they even realize what they have done; but they will, most assuredly they will. The consequences of their horrendous mistake will soon be upon them as institutions not coerced or forced into buying European sovereign debt will be leaving the playing field en masse as the realization dawns upon investors of just what has taken place. You cannot fool all of the people all of the time and the people that manage money for a living are not a forgiving group when governments try to supersede their lawful rights.

“Unlimited power is apt to corrupt the minds of those who possess it; and this I know, my lords: that where law ends, tyranny begins.”
                         -William Pitt

 

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Sun, 02/19/2012 - 13:48 | 2175156 Ahmeexnal
Ahmeexnal's picture

They shall get what they deserve.

Time to wake up Victor Hugues.

Sun, 02/19/2012 - 13:51 | 2175172 macholatte
macholatte's picture

The “Rule of Law” has been abrogated and tossed aside in the name of political contrivance.

Welcome to the Monkey House.

Sun, 02/19/2012 - 14:00 | 2175211 knukles
knukles's picture

Ah yes, the rule of law abrogated in the US (GM and Chrysler) and Europe (CAC's ECB).
I seem to recall that there's a neat passage in the Bible about Shitting on One's Self.  

Like the NYT's by-line, "All the news that fits."

Franz Kafka would be proud.
Eddie Bernays would have a bazillion job offers.
And all I get is another fucking by the gubamints.

Sun, 02/19/2012 - 14:05 | 2175230 LowProfile
LowProfile's picture

Looks like I'm getting an answer to the question I posed here http://www.zerohedge.com/news/subordination-101-walkthru-sovereign-bond-...

The ECB will either:

1. Print to cover the HF's bets.

2. Abrogate the contracts that underly the bets.

 

Sun, 02/19/2012 - 14:07 | 2175237 spiral_eyes
spiral_eyes's picture

Sorry to bring this up, but look at Germany's record. That should tell you which it will be.

Sun, 02/19/2012 - 14:10 | 2175243 LowProfile
LowProfile's picture

Sorry, I don't even know where to look to try and see what you are getting at.  A few search terms would have been helpful.

So...

The ECB will either:

1. Print to cover the HF's bets.  (EUR bearish, USD bullish (until Benny and the Inkjets get busy)).

2. Abrogate the contracts that underly the bets. (EUR bullish (This would AFAIKT be very EUR deflationary)).

 

If history is any guide at all (and it's been a PERFECT guide so far) I'm betting they do #1 (I think they have to, otherwise all the debt deflates and the whole Eurosystem implodes).  Anyone care to poke holes in this thesis?

Sun, 02/19/2012 - 14:12 | 2175261 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=EB319yIHZdE&feature=g-vrec&context=G27e777fRVAAAAAAAABA

Keiser Report: Scam On Epic Scale (E238)

Uploaded by on Jan 19, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss 419 scams and Tim Geithner's gimp. In the second half of the show, Max talks to financial blogger and semi-retired Wall Street executive Warren E. Pollock about MF Global, wealth confiscation and bank holidays.

KR on FB: http://www.facebook.com/KeiserReport

Sun, 02/19/2012 - 14:14 | 2175269 JW n FL
JW n FL's picture

 

 

SELECTIVE INTEREST(S)! Bitchez!

Change the Law(s)!

Grab Customer Accounts!

1st Position for Counter Party Banks! 2nd Position for the Customers who Deposited the Cash!

WAKE THE FUCK UP SHEEP!

Sun, 02/19/2012 - 15:02 | 2175429 Ahmeexnal
Ahmeexnal's picture

Norway's super oil fund was heavily intested in greek bonds.

Seems like the norwegians are going to get fuxored by the ECB.

Paging Mr. Breivik, paging Mr. Breivik.

Sun, 02/19/2012 - 15:46 | 2175590 AldousHuxley
AldousHuxley's picture

Euro and ECB and EU is Europe's elite performing M&A with rest of the poorer cousins to boost their own status

Europeans at the top of the pyramid will stand taller while the base gets larger. Sucks for productive european middle class as their standard of living decreases.

 

Greeks just partied hard so they don't deserve much anyway.

German elites and Greek elites still have enough money in the bank not to have their wives and children ever work in their lives.

German workers who worked hard and saved money are screwed as they are asked to pay for Greek party of Olympic size.

 

What is happening is that labor is realizing how much they got sold out by their own masters.

 

Sun, 02/19/2012 - 16:08 | 2175648 YuropeanImbecille
YuropeanImbecille's picture

Why do you use the codeword elites?

Sun, 02/19/2012 - 19:39 | 2176110 Careless Whisper
Careless Whisper's picture

The EU was just one more step towards the New World Order (one world gov) and its about to SELF-DESTRUCT.  woooohoooo

Sun, 02/19/2012 - 23:26 | 2176691 Tyranny is Love
Tyranny is Love's picture

Short term linear thinking like that will get us all in trouble.

The collapse of the EU was intended from the beginning.

If the intent of the NWO was to create a one world government/currency etc, then ALL Nation States must be destroyed (or subordinated to administrative districts without sovereign powers). This includes the US and EU, China, Russia. All must go.

Step back and view the master craftsmen at work. Geometric, nonlinear thought at work over centuries.

 

Sun, 02/19/2012 - 23:41 | 2176718 redpill
redpill's picture

I like Max Keiser a lot.  But do not for a second believe RT (yes that stands for Russia Today) is a biasless source of information.  The press is not free in Russia.  As I said, I like Max Keiser, I believe much of what he says is completely valid.  But don't forget who he works for, please.

 

Mon, 02/20/2012 - 00:16 | 2176772 The Big Ching-aso
The Big Ching-aso's picture

 

 

Man who open ECB Pandora's Box smell fishy.

Neoconfucius

Mon, 02/20/2012 - 00:33 | 2176792 AldousHuxley
AldousHuxley's picture

RT stands for Russia Today.....they are mostly true and competition is good to challenge US media brainwashing, but Russians will throw in propaganda like putin hunting tigers half naked once in a while.

 

RT = Russian oligarchy

PressTV = Iranian theocracy

Al Jazeera = Qatar Arabian kingdom

CCTV = Chinese empire

BBC = British empire

 

Max Kaiser speaks through RT or France24 (Eiffel Tower in the background), because he was banned in US for insider trading. Ex-wallstreeters are the best though to learn about the dirty secrets since they have nothing to lose.

ZeroHedge founder himself is ex-wall st.

So is businessinsider...

 

That's one of the reasons why wall st. doesn't do much layoffs despite they should be the ones hurting the most.....their employees will go on a tell all.

 

USA propaganda

"Iran’s rich eat ice cream flecked with gold as poor struggle to survive. The new wealthy are buying Porsches, getting caviar delivered to late-night parties, and eating $250 ice cream covered in edible gold "

http://www.washingtonpost.com/world/middle-east/irans-rich-eat-ice-cream...

 

As if Wall Street elites is any better as wall street's elites are buying their 10th Ferrari, getting cocane and hookers delivered to their late-night parties, and paying $250 in tips for $2000 sushi at Masa.

Mon, 02/20/2012 - 01:30 | 2176868 QuantumCat
QuantumCat's picture

Truth can be a powerful weapon in the war of national interests, especially when the enemy has corrupted his own center of gravity... the belief among the people that they are free.  RT pursues the truth on many levels for desired effect, but as you point out, their agenda serves a maligned interest. 

Mon, 02/20/2012 - 03:30 | 2176955 redpill
redpill's picture

If there's one thing John McCain got right it is that Putin = KGB.  And they are far better at media and subversion than anyone in the western world.  If you don't know what subversion is, please just watch, it's worth every second.  http://www.youtube.com/watch?v=y3qkf3bajd4

As I said before, it doesn't necessarily invalidate everything Max Keiser or RT presents, but in the world today, never assume any media source is unbiased, not that I actually need to tell ZHers that.

Mon, 02/20/2012 - 04:36 | 2176988 Element
Element's picture

USA propaganda

"Iran’s rich eat ice cream flecked with gold as poor struggle to survive. The new wealthy are buying Porsches, getting caviar delivered to late-night parties, and eating $250 ice cream covered in edible gold "

 

MANDY :  Well, I suppose I should have told you a long time ago, but... Well Brian... your father isn't Mr. Cohen.

BRIAN :  I never thought he was mum!

<SLAP!>

MANDY :  Now none of your cheek!! ... he was a Roman, Brian, he was a centurion in the Jerusalem Garrison.

BRIAN :  You mean... you ... you were RAPED?!!!

MANDY :  aww ... well, ... at first, yes ...

BRIAN :  Who was he?!!

MANDY :  ah!  Naughtius Maximus was his name ... mmm.  He promised me the known world he did.  I was to be taken to Rome, a house by the Forum, slaves, asses' milk, as much gold as I could eat ... and then, he, ... having his way with me ... vroom! ... like a rat out of an aqueduct!

BRIAN :  The BASTARD!!!

MANDY :  Yeah, so next time you go on about the bloody Romans, don't forget--you're one of them!

BRIAN :  <In a fit of rage> I'm not a Roman mum, and I never will be! I'm a kike, a yid, a hebe, a hook-nose; I'm kosher mum!  I'm a Red Sea pedestrian, and I'm proud of it!

 

- The Life of Brian

 

--

That's where the idea comes from.

Mon, 02/20/2012 - 09:36 | 2177172 tabasco71
tabasco71's picture

Anybody else feel like a little... giggle... when I mention my fwiend... Biggus... Dickus ??

Mon, 02/20/2012 - 05:48 | 2177014 djudy003
djudy003's picture

Any world government process would have the interests vested in the US at its pillar. The EU structure was greatly influenced by America. But something tells me, that the US would never put the EU in a position to succeed and be one step closer to become a success model for an eventual world government.

I would never underestimate the power of those who have vested interests in the US. Until they decide to leave (like they left Europe before) the US will always be number 1.

 

Mon, 02/20/2012 - 00:40 | 2176813 ChacoFunFact
ChacoFunFact's picture

“We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected the promises of discretion for almost forty years.  It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years.  But the world is now more sophisticated and prepared to march towards a world-government.  The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.” – David Rockefeller, Address to Trilateral Commission, 1991.

Sun, 02/19/2012 - 15:50 | 2175598 economics1996
economics1996's picture

"You got fifty ways you're gonna fuck up. If you think of twenty-five of them, then you're a genius... and you ain't no genius. You remember who told me that?"

 https://encrypted-tbn0.google.com/images?q=tbn:ANd9GcSUm2dzRkEajXRm45JHi...

Sun, 02/19/2012 - 22:48 | 2176609 jeff montanye
jeff montanye's picture

"they're going to know it's arson."

yes, many, many know a crime has been committed.  many crimes in fact.  even a good number of the soldiers and police know it.  but the ancien regime persists (still digging the victor hugues reference).  

when will the slaves revolt?

Sun, 02/19/2012 - 15:17 | 2175491 Sockeye
Sockeye's picture

Excellent quote, bears repeating:
“Necessity; the tyrant’s plea.” - John Milton

Sun, 02/19/2012 - 16:59 | 2175773 Michael
Michael's picture

New World Order Power grab.

Alex Jones is right about everything.

“Unlimited power is apt to corrupt the minds of those who possess it; and this I know, my lords: that where law ends, tyranny begins.”
                         -William Pitt

Sun, 02/19/2012 - 17:20 | 2175816 Michael
Michael's picture

The Public/Private partnership between the ECB and the European nation states have failed miserably.

The Public/Private partnership between the Federal Reserve and the Unites States of America has failed miserably.

Mon, 02/20/2012 - 04:42 | 2176995 Element
Element's picture

Alex Jones is right about everything.

 

I strongly disagree. ... why do you insist on accepting authorities and experts? 

It's a mental-ponzi mate.

Mon, 02/20/2012 - 05:31 | 2177006 Michael
Michael's picture

Not everything but almost everything. Is that better?

Mon, 02/20/2012 - 07:48 | 2177055 Element
Element's picture

No, I don't believe a word he says.

I simply have no reason to, and also have no need to.

I can evaluate stuff myself but I can not determine if another has done so, or if they are any good at it.  

In the end only my own work, in that regard, matters to my understanding.

So I don't accept and don't need to accept that anyone may be almost always right about anything.

And I certainly don't accept that's remotely likely, in any case.

I especially won't trust someone who exhibits classic traits of a potential political demagogue and definitely is a sophisticated propagandist who is professionally (i.e. how he pays bills) shaping debate and perception.
 
Why do you want to embrace what he says? This is rhetorical, but it's also a serious private question.

Doesn't Alex Jones implicitly constantly lobby for your belief to be given to him?  Why do you want to be mentally subordinate to him?

Doesn't Tyler take the (I think valid and proper) approach, that you should believe and accept absolutely nothing he or anyone else at zh says, as a wise and necessary precaution?

I don't accept Tyler either.

I don't even accept my own positions, and reserve the right to contradict them.  I have no commitment to consistency because there is always more to learn.

What I do know is that it is impossible to express or convey actual Truth, verbally.

(Oops! ...)

Mon, 02/20/2012 - 08:04 | 2177063 Ghordius
Ghordius's picture

+1T long Socrates

Sun, 02/19/2012 - 18:53 | 2175987 TarzanNe1
TarzanNe1's picture

And now the same one who wanted the 1st spot are bitching about that the ECB is doning it to them!!

Sun, 02/19/2012 - 22:32 | 2176572 chipshot
chipshot's picture

1. SHOW THE TRUNK OF 1938 GOLD BEARER T-BILLS.

2. MOVE THE NWO /NAZI INTERNATIONAL/ILLUMINATI/MASONIC/ GLOBAL CURRENCY FORWARD BY CONFISCATION.

3. CRASH THE PETRO DOLLAR SYSTEM { 200 $/B} BY WARRING THE MIDEAST AND CRASH THE MIDDLE CLASS CONFIDENCE AND WEALTH.

4.STAY TUNED FOR REGIONAL/NATIONAL FALSE FLAGS TO BEGIN THE POLICE STATE CRACK DOWN.

5. WATCH AS REGIONAL POWERS ALIGN ...EASTERN" WHITE HAT/WHITE DRAGON" VS. WESTERN WORLD BANKER ELITES. MAYAN CALANDER MAY BE A LATE INVENTION.

5. ARE YOU READY?   

 

Mon, 02/20/2012 - 11:32 | 2177481 Zymurguy
Zymurguy's picture

Time to load up the mag's, don the vest and make ready.

Sun, 02/19/2012 - 14:17 | 2175272 LowProfile
LowProfile's picture

Hey JW you douchebag - I asked a question in line with the topic at hand.  Why don't you try answering it next time instead of trying to hijack the fucking subject, you cocksucking asshole?!

Sun, 02/19/2012 - 14:25 | 2175302 Manthong
Manthong's picture

It’s different this time.

  

“As when a conjurer takes a lease
From Satan for a term of years,
The tenant's in a dismal case,
Whene'er the bloody bond appears…

A baited banker thus desponds,
From his own hand foresees his fall,
They have his soul, who have his bonds;
'Tis like the writing on the wall.”

From..

-Jonathon Swift, (1667-1745), “The Run Upon the Bankers”
http://www.readbookonline.net/readOnLine/38875/

Sun, 02/19/2012 - 14:46 | 2175369 WmMcK
WmMcK's picture

There are three things that are never satisfied, yea, four things say not, It is enough:
The grave; and the barren womb; the earth that is not filled with water; and the fire that saith not, It is enough.

- Solomon (just a little earlier)

Yeah, we haven't ever been here before.

Sun, 02/19/2012 - 14:47 | 2175373 Richard Chesler
Richard Chesler's picture

"Political contrivance"

Banksters prefer the term "God's work".

 

Sun, 02/19/2012 - 14:54 | 2175395 TruthInSunshine
TruthInSunshine's picture

The law of contract?

 

Do you mean to tell us there was once upon a time whereby two parties could enter into a clear, unambiguous agreement, whereby each provided consideration (something of value) to the other, and that there were terms & conditions spelled out that defined the rights and obligations of both parties that couldn't be changed by one of the parties after the time that each signed the agreement?

 

How quaint.

Sun, 02/19/2012 - 17:22 | 2175821 bankonzhongguo
bankonzhongguo's picture

Everyone should remember going forward that if they can do "ALL OF THIS," then they can easily cancel the debt. Period.  that even means YOUR DEBT.  Not just Greece.

Debt is bondage and the fact that they have the power to move in either direction, but in fact simply tighten the noose around their debt-slaves' neck means they, in time whether on purpose or accident, will strangle their victim/target/client/debtor.

There is no law anymore, no justice.

And that means your currency is losing value.

I would suggest every person everywhere as a sign of protest burn a note of their local currency on YouTube as a sign of silent solidarity that what these central banks and their shadow shareholders are intentionally doing to destroying the global financial system - only to remake a new order for their own designs.

Somehow I don't think you are asked to vote on this move.

The war is on.  Corporations and their billionaire controllers verses all other human beings, whether they be huddled in a rainforest, throwing rocks in a city square, silently studying for exams at university or just grunting out the day to feed their families or visit their aged parents.

I keep looks for signs of; "What is getting better?"

So far it only getting darker on the horizon. 

And its being done on purpose.

If you asked me years ago if this was possible, I would have called you a "nut."

Yet its really happening.

Day after day.

Fuckers.

 

Sun, 02/19/2012 - 17:49 | 2175870 HoofHearted
HoofHearted's picture

Is this a way to hold of ISDA? Or should this trigger the CDS as soon as a month from now?

Gold and silver, bitchez!

Mon, 02/20/2012 - 00:26 | 2176798 BlackholeDivestment
BlackholeDivestment's picture

Bankonzhongguo, I understand what you are saying and agree in principle ...but, let me tell you about something that may inspire you to come up with something other than burning the shit paper when it's to early to be used for needed heat. Lol 

...a long story short, I was burning some bills in the fire, with the same protestant lamentation, and all of the sudden one of the people that happen to be there at the time, who really has no clue about much of anything, because she was so young and poor, well, ...she reached into the fire. Let me tell you, that hit me hard and quick.

That was just one of my continuing revelations ...of me being a dumb ass. I gave her the rest of the cash a was going to slowly drop and burn, as I piously made my remarks about how evil the system is ...and all the crap we  who are watching know about. I realized shit paper has value and can still wipe an Ass clean in the short term. LMAO

Please, do not be a dumb ass like me. Learn from my mistake. Come up with a better idea. I beg you. You feel like burning something, maybe burn a flag or two while you have a mask on of a Central Banker or something. Lol. You could do it in front of a bank or government building and hand out the cash to kids who are walking with their parents while you say ''have some of your parents debt'' err something. Lol

Mon, 02/20/2012 - 01:49 | 2176878 bankonzhongguo
bankonzhongguo's picture

Hold your G_d damn dollar, euro, dinar, yen, yuan, franc up to the camera and set it on fire.

If the Central Banks are so intent on setting fire to our future through debt and servitude, and if money is debt after taking us off a gold standard, then setting fire to the currency is the same as extinguishing our debts.

Burn it down.  And maybe in the process some of the assholes responsible or those that profit from our tolerance and obedience will get taken down in the process.

Its not enough to size up the phantom "elites," the "blue bloods," the "czars" and the like.

In addition we have to pass judgement upon their limo drivers, their chefs, their body guards, maids, lawyers and tax dodgers, their friends on corporate boards and the favorite charity ball, etc.

The direct servants of this class IS responsible for pulling the plug on these charades.

Until an IMF body man turns to their master and says; "No More." and fires a few rounds, not much is going to change.

Burn the currency is a statement to liberate the world from a future of usurious debt bondage and the cryptic and undemocratic designs therein.

Perception is reality.  After all that is what your fiat is.

Mon, 02/20/2012 - 06:27 | 2177021 BlackholeDivestment
BlackholeDivestment's picture

...yeah yeah yeah, and like I said, I'm ahead of you, my heal is bruised from kicking my own ass, but, my friend, the point being made, by the girl, ...is THE SAME IMAGE AND REALITY OF THE EVIL SHORT TERM GAINS  of the Selfish Suiicide Vampire Squid of the Great Wal Mart of China, the producers of the shit paper and the burning image of her dusty ass. That young girl is a virgin child, not the Whore of Babylon. Just because we are offering our own claim it is still their image and it does not mean we are not unbecoming in this case, so long as she is compelled and in possession.

Did you not understand the Cremation of Care ritual slaughter of a child upon the Alter of Moloch? If you did, how is it that you would burn this young girl and not be guilty OF NOT CARING? http://www.youtube.com/watch?v=rAwqvjqAfkQ

Put it to you this way. You do not burn the child in order to make your point. Do not cast your judgment upon her and expect not to be burned my friend. Wipe your ass and keep your hand out of the fire. When she can stand fast, as we comfort her with the heat of shit paper, we will not stand as fools out of time and season, we will be standing fast and doing no harm.

If we have shit paper to burn are we not careless assholes, just like ''them''? ...so long as she is drawn like a Moth to the flame? Let us no be tempted. http://www.youtube.com/watch?v=XkUaV9GZDuk

 

Mon, 02/20/2012 - 08:17 | 2177069 francis_sawyer
francis_sawyer's picture

Thanks for all those ideas, but I'll stick to buying silver with it...

Sun, 02/19/2012 - 21:29 | 2176422 old naughty
old naughty's picture

If you don't mind me asking,

just how many years the term has been?

Sun, 02/19/2012 - 14:53 | 2175394 MsCreant
MsCreant's picture

Calm down. Both and more. Germany, Weimar. US, Print and randomly change the rules midgame to one's advantage (as Knuckles reminded us).

No need to make a choice of one or the other.

Check kiting, you and I "buy" or "swap" with each other.

Hide the sausage. I hide your debt on my books while your auditors look, then you hide mine on yours while my auditor looks.

Fake organizations and "funds" that are really power grabs. 

Sweetheart, don't you get it? Don't worry your beautiful soul. They are doing it any and EVERY way they can. You notice one scam, I see the other, and our Florida boy focuses on something else. Don't get bent. It's all Ponzi now. Forrests and trees, oh my!

Sun, 02/19/2012 - 15:03 | 2175431 LowProfile
LowProfile's picture

I know, but I'm trying to resolve a timing question (buy more gold NOW, or WAIT until the dollar rallies hard), and the douchebagmotherfuckingasshole JR is fucking up my crowdsourcing.

Sun, 02/19/2012 - 15:58 | 2175622 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=EB319yIHZdE&feature=g-vrec&context=G27e777fRVAAAAAAAABA

Keiser Report: Scam On Epic Scale (E238)

Uploaded by RussiaToday on Jan 19, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss 419 scams and Tim Geithner's gimp. In the second half of the show, Max talks to financial blogger and semi-retired Wall Street executive Warren E. Pollock about MF Global, wealth confiscation and bank holidays.

KR on FB: http://www.facebook.com/KeiserReport

if you were to watch the Video..

the Video..

in the GREATEST! DETAIL POSIBLE!

Would Describe the ANSWER!

To the Question YOU ASKED!

but since you are toooooo fucking stupid to be able to push the PLAY BUTTON!

I will answer YOUR QUESTION AGAIN!

"SELECTIVE INTERESTS" is the President being set in Bankruptcy Courts!

as it applies to Segregated Accounts!

You Checking, Savings, Money Market and / or Trading Account are by Definition Segregated Accounts.

Now if you don’t understand the BIG WORDS! used too pacify the Sheep! it is because YOU ARE A FUCKING SHEEP!

I answered your Question; you lack the ability to comprehend the language used to keep you in the dark... Hence the Video!

no good deed goes un-punished.

 

Sun, 02/19/2012 - 16:44 | 2175728 Manthong
Manthong's picture

"a timing question"

Buy all the physical you can now because a year or two out a hundred bucks this way or that won't make any difference.

You might want to buy a few cheap long dated out of the money puts on GLD to hedge your position.

In a year or two availability and oppressive controls might be the issue. 

Sun, 02/19/2012 - 17:47 | 2175796 LowProfile
LowProfile's picture

This is my question (and why I'm so frustrated with the asshole JW, because he missed it entirely and subsequently forced me to listen to Max Keiser's self-indulgant obsfucating hyperbole just to insure that, in fact YES, JR missed the fucking point and is a stupid fucking douchbag).

A year out, sure.  Gold will be $2500, possibly a lot more.

But near term, an EUR crisis could spark a dollar rally strong enough to create a 30% decline in gold.

In which case, I'd rather get the discount some time in in early April.  I can't buy GLD puts because I'm on an all cash basis, and in my case, a hundred bucks or so difference is a few ounces.

Sun, 02/19/2012 - 18:32 | 2175952 toothpicker
toothpicker's picture

Personally I'm buying now when PMs are trading at a massive discount (again: my personal view). Trying to pick exact bottoms are for fools

Sun, 02/19/2012 - 18:57 | 2175994 Manthong
Manthong's picture

Picking the absolute best time to go all in at the bottom is less likely than winning the lottery.

Buy once a week over some period of weeks... buy the same amount-- fiat-cost average and accumulate.

Don't wait.

You cannot guess what the idiots in charge will do to the market and the damn thing can reverse in a heartbeat.

 

Sun, 02/19/2012 - 19:04 | 2176011 economics1996
economics1996's picture

Agree with you completly.

Sun, 02/19/2012 - 19:23 | 2176066 stacking12321
stacking12321's picture
Pneumonoultramicroscopicsilicovolcanoconiosis  antidisestablishmentarianism Supercalifragilisticexpialidocious
Sun, 02/19/2012 - 17:11 | 2175795 Michael
Michael's picture

and the douchebagmotherfuckingasshole JR is fucking up my crowdsourcing.

Points for swearing in ZH fashion.

Point of order, many ZH'ers can walk and chew gum at the same time.

In other words, can deal mentally with more than one subject at the same time.

 

Sun, 02/19/2012 - 17:13 | 2175797 LowProfile
LowProfile's picture

I'm trying to get a question answered, mmmkay?

Sun, 02/19/2012 - 20:20 | 2176194 brewing
brewing's picture

this isn't a chat room...

Sun, 02/19/2012 - 20:36 | 2176241 Cabreado
Cabreado's picture

Change your name... it, it... it just doesn't work.

Sun, 02/19/2012 - 21:26 | 2176414 Think for yourself
Think for yourself's picture

The answer will either come by itself or not. One would have thought this to be obvious by now.

Sun, 02/19/2012 - 22:25 | 2176558 FreeNewEnergy
FreeNewEnergy's picture

Hey, LowProfile, did somebody hit you with a stupid stick or were you born that way. You indolent little piss-ant, your question has been answered three or four different ways by different people. The answer is that NOBODY KNOWS FOR SURE.

So, take your muthe fuckin' crybaby attitude and get lost with it. Nobody gives a rats ass if you pay $1600 or $1800 for your shitpile of gold dust.

In other words, STFU.

Regards,

All your pals who laugh behind your back

Sun, 02/19/2012 - 16:08 | 2175649 smb12321
smb12321's picture

MsCreat - I see this kind of comment all the time.  "It's all power grabs...a big Ponzi scheme....everything's fake."  OK, do you have any suggestions to rescue us from this fakery?  The biggest problem with ZH bitchers (and yeah, I bitch too) is that they never offer a single constructive counter. 

If banks are evil, then how are loans made, payrolls paid and credit received?  If accounting is simply a matter of hiding debt, then how will we ever know what anything is worth?  I mean, let's have some suggestions, folks.

Sun, 02/19/2012 - 16:37 | 2175717 MsCreant
MsCreant's picture

Hi,

I don't think you are going to like what I say. You actually get good advice here all the time, but then folks think it is too extreme or tin hat, so they don't hear the advice and shop for other options (this is fine to do, I am still shopping and listening myself). Think of all I am getting ready to say in the same way you would think about insurance:

1. Get your personal situation squared away. Do you have food in case of a shut down of the transportation system or a natural disaster (or man made one) in your area. Water is good to nail down too and if you want advice on that me and others could get you started. People used to keep one years worth of supplies because crops could fail. We depend too much on the distribution matrix these days. If you buy yourself luxuries, you can afford to do this for yourself and family.

2. Can you defend yourself? Get a gun, some ammo, and training.

3. Keep some cash on hand in case the banking system collapses.

4. Keep some PMs on hand in case the currency system collapses.

5. Get some other basics (medicines, tools you might need that are not power tools, camping gear).

6. If you have that squared away (I really did gloss that, don't want to type too much here to you), THEN pay off your house, pay down debt.

7. Once your personal situation is squared away, if you have a business, take the above template and apply to the business. Keep cash on hand for operations, put only enough money in the bank to pay the immeadiate bills, stream line the number of people you have on staff, expand your capacity to store the stuff that you need to do the business. If your business is not something that is useful during a crash, well, you may want to reconsider what you do.

Here is the deal. No one is getting arrested. Unless you and me and many others together go out there and arrest the fuckers ourselves (part of the problem is all of us see ourselves as breaking the law if we make a choice like that), no one will be arrested. The system you innocently find yourself in is corrupt and you do not have the resources on your side to do anything about it. So now what? We have to get through the crash and make ourselves useful while it is going on and in the aftermath. 

All you have control over is YOU. Get your individual affairs in order, organize your business, maybe your community (if not, store supplies so that when they are able to organize you will have more to work with). If this happened locally, everywhere, much about our situation would heal on it's own. This is different than being selfish. Taking care of yourself means you are not asking someone else to do it for you. The problem is, if you are here, you have to know you are an early adapter and you have to not resent those who are not.

I don't see anything else to do. 

 

Sun, 02/19/2012 - 17:17 | 2175810 LowProfile
LowProfile's picture

Words to live by.

Bring it, bitchez!

Sun, 02/19/2012 - 17:55 | 2175885 chinaguy
chinaguy's picture

Hey Ms C...., Word..... & I'm prepped & advocate prepping...but

Nothing on Bloomberg, or WSJ Blog, or Cluster stock or Drudge which wasn't covered 48 hours ago. It was a zero in the market on Friday...a zero.

Not saying that a potential $65 billion in re-issue &  contract abrogation  is not bad news...but look at the automotive bailouts which "re-defined" contract law...life went on & Friday the markets melted up both here & in the EU...a zero

jus' saying..... don't max out your CC cards on rice & beans just yet.

Sun, 02/19/2012 - 18:19 | 2175932 WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

I need more than one "up" vote for your comment. Nicely done.

Sun, 02/19/2012 - 20:05 | 2176162 Coffin Dodger
Coffin Dodger's picture

I like you.

Sun, 02/19/2012 - 20:13 | 2176178 sun tzu
sun tzu's picture

I might have to report you to Mr Napolitano at Homeland Security. 

Sun, 02/19/2012 - 21:33 | 2176436 Dave Thomas
Dave Thomas's picture

That's Ms. Napolitano if your NASTY!

Sun, 02/19/2012 - 20:56 | 2176296 TheFourthStooge-ing
TheFourthStooge-ing's picture

MsCreant said:

[a lot of good advice which I agree with]

I can only think of a few things to add.

1. Plant a garden. This year. Most people think all you do is put some seeds in the ground, but there's a lot more to it than that. I started a garden in my back yard five years ago, and it's not difficult. Having said that, I'll also say that I'm still learning from my mistakes and have a lot left to learn. Anyone can do it. If you're creative, you'll find that you have more space for gardening than you thought. As an example, every year I use a portion of my driveway for growing potatoes. I use stacks of old tires with the sidewalls cut out and some landscaping fabric in the bottom to retain the soil. At the end of the season, I take down each stack one tire at a time, sifting the soil and pulling out the potatoes. It's a lot easier than digging them out of the ground. I save the soil, augment it with composted tree leaves, and reuse it the next year. This year I'll be adding a couple of stacks of tires with sweet potatoes.

2. Get some books with useful knowledge (gardening, seed saving, canning, first aid, edible wild plants, medicinal wild plants, herbal medicine, metal casting, metal working, woodworking, soapmaking, general construction, etc.). The internet may not last forever and may only be available sporadically. Books don't require a digital infrastructure and are immune to power outages.

3. Learn some useful skills. General repair is a skill which will be in great demand. The abundance of the debt-financed era has led to a throwaway society, the consequence of which is a lack of people who know how to fix things. The scarcity of the debt collapse era means that people will no longer be able to throw away and replace things when they break. Replacement parts may be hard to find, so the ability to improvise with salvaged parts and make new parts will come in handy. This is how the books mentioned above can be used now.

4. Get to know your neighbors. Share produce from your garden with them, and encourage them and help them to start their own gardens. A community of neighbors that are even partially self-sufficient is a useful resource and can band together for mutual support. A collection of strangers living near each other, all dependent on the status quo for their existence, is a starving angry mob waiting to happen.

 

Mon, 02/20/2012 - 01:36 | 2176871 MsCreant
MsCreant's picture

The gardening is good for so many reasons. Thanks for adding to the post.

Mon, 02/20/2012 - 09:11 | 2177116 francis_sawyer
francis_sawyer's picture

Great tips...

Here's something that I'd like to add for people who live in more urban or suburban landscapes (on the subject of gardening)

It's true what it says above in that it takes a few years to get gardening in synch with your natural environment... Primary 3 considerations are:

- Fertilization

- Protection (from animals & bugs)

- Water

Remember ~ I'm talking more about "non-rural" habitants here...

FERTILIZER is expensive & it takes a fairly long time to build up enough useful compost to do a meaningful yield of crops... So in the beginning, go to your local landfill or nursery and get yourself a few yards of dirt mixed with leaf compost (plus cow manure)... It's not likely that the dirt in your yard is going to be very ready to yield crops right away (until it's REALLY plowed under ~ which is problematic in urban areas because there are laws against digging)... Most of the soil is probably too compacted (&/or clay), so it's not too conducive to growing... If you happen to live close to a peat bog, fill up a couple of trash cans at a time that way & work it in)... I'd also highly suggest getting some bags of perlite or vermiculite (to help the 'starter' growing)... Roots need space to grow when plants are young & the perlite bags are obviously non-perishable...

ANIMALS make sure you have ample supplies of chicken wire &/or plastic netting (all these items can be had at any big hardware store)... Some folks scoff at Home Depot, or Loews (as do I, conceptually)... But look, you don't get 'style' points for survival... Those items may NEVER be easier to find (or cheaper) to buy than they are right now... Buy what you can, then buy backups, then buy backups to that... Any 'leftovers' will practically be CURRENCY if TSHTF...

WATER I can't stress this enough... You still may be effed if you have to rely on city water... Luckily, I live on a farm now, but I went thru many years (in preparation), trying to work land in a suburban area before I moved away... I'm on a well (on my property) now & near a large fresh water stream... But in the city it's a pity... Water is FREE here, but water (to grow food) would have costed me up to $300-$400 a month (based on aggregates), in the former situation... YOU CAN'T COUNT ON RAIN... Do you think all the food in the world is grown on RAIN??? No way Jose, in America they're draining the Ogalalla Aquifer... Probably within the next 100 years we'll be back to the dust bowl... China is having its dustbowl right now... Much of the 'pollution' in the skies of Beijing is sand blowing in from the Gobi desert... China is becoming somewhat 'Saharafied' as we speak... Anyway ~ Rain barrels (collecting h2o from the roof) is obvious but problematic)... Many areas outlaw this practice... Plus ~ the collected h2o ends up being a breeding ground for mosquitoes, etc... A solution I made was to pipe the rainwater collection into my basement into a series of 96 gallon wheelable garbage containers... The h2o discreetly came off one of the downspouts and into a hole cut into the foundation of the house (about 1 1/4" PVC pipe)... I had leaf filters outside, then several more filters at the other end (scrap stuff, like pool skimmers & even ladies stockings)... The reason for 96 gallon trash cans is because you can't fit anything larger into a basement... I'd figured out I needed about 500 gallons to get thru the dry parts of the year (so I had 5 of them)... I 'daisy-chained' them (with flexible tubing) together so if there was a huge thunderstorm, the water would run into the first one, then spill into the 2nd one & so on... The very last one spilled into the sump pump system and right out of the house... Never once did I experience any failures with the system...

One thing you have to be careful with is 'mildew' (from containing h20 in basement), so I also had de-humidifiers running in that closed off area... To get the water to the 'garden' I just used another 'pool pump'... After awhile, I literally had the whole thing set on a timer system (so everything was irrigated automatically, even when I was away for a few days)... Rookie gardeners don't realize that you become a slave to some plants if you don't give them constant attention (depending on which ones)...

Lastly... STOCKPILE PVC PIPE WHILE YOU CAN! (Copper tubing & Silver solder as well)... I LOVE Zero Hedge... But I laugh my ass off at all the PM hoarders who are scared to death of Weimar hyperinflation yet not a word is mentioned about useful items that use important commodities...

- PVC piping (can be used BOTH for irrigation systems & literally as cheap framework ~ I make designer collapsable tables & shelves out of it)... It's plastic, so it's MADE FROM OIL... It's still cheap now (wink, wink)... stockpile while you can...

- I don't irrigate with copper, but remember that copper is a conductor of heat... It's useful to extend growing (as if you're industrious, you can heat small soil patches by pumping hot water through a copper tubing system (like a radiator effect)... It's not too different from the suggestion above of using car tires (for growing potatoes), the car tires are black and they naturally attract & hold heat from the sun)...

- Silver bitchez! ~ Jeez, just stockpile 'silver solder' (which is at every Home Depot & Loews)... For obvious reasons

Probably also wise to get some food grade barrels & some 5 gallon steel jerry cans...

Anyway... Those are just some helpful hints (for those who simply cant break free and move to the country)...

 

 

 

 

Mon, 02/20/2012 - 10:40 | 2177338 smb12321
smb12321's picture

Francis-Great post.  We have a very large pool that I could use at any time plus here (TN) we have an overabundance of rain.  For good dirt - one of the best ways to enrich the soil is using chips from downed trees as mulch.  I get the tree choppers to leave a huge pile every few months then I distribute it and wait for a while.  It disintegrates and with the constant infusion of compost, makes for a very rich dirt.

Another item that will be in need - buckets.  We keep the large chlorine-tablet buckets that I use for a wide array of things.

 

 

Mon, 02/20/2012 - 16:53 | 2178444 TheFourthStooge-ing
TheFourthStooge-ing's picture

Excellent tips, francis.

Just a few quick thoughts to add to what you've written.

Fertilizer and soil prep: I've found that leaf compost takes about two years to break down anaerobically (meaning you let the pile sit and rot without turning it on a regular basis, which is great if you're lazy like me). I have three bins by the garage that I made with steel u-posts (or whatever you call those green steel posts with little tabs for wire hooks stamped into them) and 48-inch high 1/2-inch mesh hardware fabric (steel mesh wire). They're each 4x4 feet in area, 48 inches high, and built as a single unit, so I only needed 8 posts. In the autumn when I rake my leaves, I fill up two of the bins, packing the leaves down in order to get as many in there as possible, and then soak them with water from the rain barrel. If you have a leaf shredder, you can fit more leaves in the bins and they'll break down more quickly. The following autumn, the volume in the two bins has shrunk by about half due to decomposition, so I take the contents of one bin and pile it into the other with a garden fork. There are then two empty bins for the current years leaves. The following autumn, I take the oldest leaves, which have now been decomposing for two years, and use them for soil improvement as well as mulch.

Also, make sure you have a good garden fork, one made of forged steel, not pressed or stamped steel. It's useful for many things in the garden, and if you combine it with a torch, you're well prepared to participate in an angry mob.

Animals: francis is right, the little bastards will get into your garden and tear shit up. Squirrels are the worst, as they'll uproot plants and leave oak saplings growing from the acorns they bury. Stock up on both chicken wire and UV-stabilized plastic netting. The plastic netting is handy if you've made raised beds, because you can make a PVC hoop framework over them and cover them with the plastic netting. The plastic netting is easier to work with when you're frequently opening the covering to get to your plants, while the chicken wire is good for applications which are more permanent, such as the ends of the raised beds.

Water: Essential. Period. I have a rain barrel set up at the back corner of my detached garage, and a PVC system along the back that takes the rain from the gutter on the other side of the roof and combines it with the water from the downspout that the barrel is under. You can make a series of filters with aluminum window screen to keep out debris and mosquitos. Also, if your barrel(s) and PVC are exposed to the sun, give them a coat of paint to keep them from breaking down from UV exposure.

Also, USE MULCH in your garden. It cuts down on water requirements because it slows the rate of evaporation from the soil, and it reduces the amount of weeds that you'll have to pull.

PVC pipe (and some adhesive w/primer), copper pipe, silver solder, chicken wire, and hardware cloth are all good things to have on hand.

 

Sun, 02/19/2012 - 21:21 | 2176394 Ignatius J Reilly
Ignatius J Reilly's picture

+1 as usual MsC

Sun, 02/19/2012 - 21:33 | 2176432 Dave Thomas
Dave Thomas's picture

Miscreant,

Forethought _AND_ compassion.

I totally dig it baby.

Sun, 02/19/2012 - 22:22 | 2176551 Michael
Michael's picture

Very wise words to live, by MsCreant.

Sun, 02/19/2012 - 22:37 | 2176588 RockyRacoon
RockyRacoon's picture

Hey, Missy.   Thank you for your comments.   We've been saying the same thing here at ZH for years.  One reason I'm not so chatty as I used to be is that I hate repeating myself to a new bunch of folks every few months asking the same question(s).   Maybe there should be a ZH central resource?   That could well be the case in the Forums section perhaps.   All we need to do is refer someone to a particular topic.  If they're not willing to do the legwork to go there and read -- then eff 'em.  I've run out of patience with the long-gone trolls and the newly minted ones.   There are some "regulars" here who just hang around to irritate people as well.  Eff them, too.

Mon, 02/20/2012 - 01:30 | 2176869 MsCreant
MsCreant's picture

I felt guilty writing some of it for just the reasons you state (it has been done by so many, so often). 

I am not posting as much either. I have realized that none of us can call this thing because too much is in play. I cannot allow myself to stay perched on the edge all the time; it is, as James Kunstler coined it, a "long emergency."

I still benefit from my interactions here. I am prepping, giving it all my best guess and knowing I will be wrong about a lot of it. I am better off for my efforts even if I end up wrong and too alarmist. I doubt it. My alarmism has already saved my family from real grief.  

It is thrilling to see how many here "get it" and are making moves to take care of themselves and theirs too. It may not be as hopeless as we suppose. 

Even the trolls have the seeds planted. They may hate it, but they are our garden, every bit as much as they try to sow their seeds in these threads. 

Take good care Rocks. Regardless of the crisis or not, we have so little time left. 

Sun, 02/19/2012 - 23:15 | 2176665 Bolweevil
Bolweevil's picture

MsC,
Level-headed, itchy trigger-finger from the get go. Cheers to you and yours. You fucking rock lady.

Mon, 02/20/2012 - 08:31 | 2177080 i-dog
i-dog's picture

Outstanding contribution, MsC! As someone else rightly said: "U rock, girl"!

The whole point of ZH is that, unlike the central planners with their schemes and detailed plans, neither one of us nor all of us have "the answer" ... we want a free market to allow individual courses of action to suit individual needs and perceptions.

The central planners have been serially failing for a very long time, but they will keep trying ... and we must each, as individuals, continually resist their attempts to enslave us (and teach our children to do the same).

Mon, 02/20/2012 - 10:25 | 2177304 smb12321
smb12321's picture

Thanks for your timely and apt comments.  The world has gotten so used to the idea of central planning - that some expert knows how we should live our lives - is so prevalent that it is accepted without thought.

Mon, 02/20/2012 - 10:22 | 2177294 smb12321
smb12321's picture

MsCreat, Thanks for the suggestions.  I can check the list - no debt, food, farm, silver/gold, savings, basics,etc....but this is how I've always lived.  Like a scout, Be Prepared.  I just don't get the stream of obscenities/conspiracies, hate crowd.

I've often wondered why Russia did not devolve into anarchy (we were there) and I think it is because (1) the authoritarian mentality was ingrained and (2) the people were dirt poor to begin.  The US has a huge advantage in that the people are resourceful and by far, the most generous in the world.

Sun, 02/19/2012 - 18:42 | 2175964 Al Gorerhythm
Al Gorerhythm's picture

Ms C gave you some powerful strategies here. If (at this stage of the crisis) you are still having to answer those questions that you posed,  and presupposing that the crux of our arguements are real, then presuppose that you are running on borrowed time, re: implementing your defensive strategies (that is if you eventually accept the premise of evil banks in your inquiry).

"If banks are evil, then how are loans made, payrolls paid and credit received?  If accounting is simply a matter of hiding debt, then how will we ever know what anything is worth?"

If you need to understand the root of their abject evil and the destruction of monetary metrics, (How do we value anything?) you need no more understanding than that presented in Paul Grignon's video (Utube) "Money as Debt". (What is the opposite of debt?)

It goes deeper than that but the essence is there and as your normalcy bias unravels and your emotions effervesce, you will again ask the question: "What do we do about this?".

You may be well advised to copy and paste Ms C's strategies (there are others, depending on your skills and needs) and return to them as a reference. You don't have to agree with the premise that banks are evil but if you spend a little time getting aquainted with their business model, you will find yourself questioning their usefullness. Banks are a business. Their job is to make profits. They get their profits from whom? How? It is not a zero sum game. You may also come to the conclusion that this is a political problem and apply the same question; What do we do about this?

When you draw the conclusion that the nations of the world are having their common wealth stripped from them, by the bank's fiat business model, and transfered to a small group of parasites (bankers, royal families, so-called elites) there is only one other plan; Self preservation first and then the obvious need end to it through system change.

Mon, 02/20/2012 - 01:55 | 2176885 CompassionateFascist
CompassionateFascist's picture

@ - http://m1arifles.com. As good as it gets.

Sun, 02/19/2012 - 16:59 | 2175759 Miles Kendig
Miles Kendig's picture

Heck, even Hugh Guiler doesn't have to pretend to be in the dark about this as it's all coming out of the first couple of boxes freeing those that participate, either directly or vicariously, to concentrate their efforts more completely on luncheons, meetings and seminars in advanced shape shifting.

Check that Guile knitting indeed!

Sun, 02/19/2012 - 15:07 | 2175446 CH1
CH1's picture

Why don't you try answering it next time instead of trying to hijack the fucking subject?

Maybe because he benefits by hijacking the subject?

Sun, 02/19/2012 - 15:25 | 2175520 LowProfile
LowProfile's picture

More like he thinks he benefits, in which case he's a possible banker plant.

But it's likely he's just a brainless fucking douchebag.

Sun, 02/19/2012 - 16:00 | 2175626 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=EB319yIHZdE&feature=g-vrec&context=G27e777fRVAAAAAAAABA

Keiser Report: Scam On Epic Scale (E238)

Uploaded by RussiaToday on Jan 19, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss 419 scams and Tim Geithner's gimp. In the second half of the show, Max talks to financial blogger and semi-retired Wall Street executive Warren E. Pollock about MF Global, wealth confiscation and bank holidays.

KR on FB: http://www.facebook.com/KeiserReport

if you were to watch the Video..

the Video..

in the GREATEST! DETAIL POSIBLE!

Would Describe the ANSWER!

To the Question YOU ASKED!

but since you are toooooo fucking stupid to be able to push the PLAY BUTTON!

I will answer YOUR QUESTION AGAIN!

"SELECTIVE INTERESTS" is the President being set in Bankruptcy Courts!

as it applies to Segregated Accounts!

You Checking, Savings, Money Market and / or Trading Account are by Definition Segregated Accounts.

Now if you don’t understand the BIG WORDS! used too pacify the Sheep! it is because YOU ARE A FUCKING SHEEP!

I answered your Question; you lack the ability to comprehend the language used to keep you in the dark... Hence the Video!

no good deed goes un-punished.

 

Sun, 02/19/2012 - 17:14 | 2175800 LowProfile
LowProfile's picture

I watched it.

I agree with it.

But it doesn't answer my question.

You failed to understand my question.

Go fuck yourself.

Sun, 02/19/2012 - 18:21 | 2175934 WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

Jesus. Calm down. 

Mon, 02/20/2012 - 10:30 | 2177317 smb12321
smb12321's picture

My view completely.  Many posters seem to have some deep personal problems and can apparently communicate only with scorn or obscenities. The idea that someone else can have a different view and not be veil is totally foreign.  I don't want my kids growing up in a world where the response is a constant FU.

Sun, 02/19/2012 - 18:50 | 2175982 Al Gorerhythm
Al Gorerhythm's picture

Do you really want answers? I doubt anyone will willingly offer you anything remotely supportive if your responce to an offering is to blast them in the face, point blank, with a howitzer. Cool your jets. How to win friends and influence people.

Sun, 02/19/2012 - 19:50 | 2176135 LowProfile
LowProfile's picture

Guess what:  Somebody DID.  No thanks to JW in DoucheBagLand

Sun, 02/19/2012 - 23:30 | 2176700 LowProfile
LowProfile's picture

Looks like we have at least six banker plants here.

Thanks boys, good to know.

Mon, 02/20/2012 - 04:34 | 2176992 whirlybird rules
whirlybird rules's picture

..yes! to what WhiskeyTangoFoxtrot and Al Gorerhythm said!

there is NO PURPOSE in offense.  unbridled anger with no objective is a waste of your good intelligence and education.  in the meantime, seriously, no offense meant... go for a run, take a deep breath, do 100 push-ups, etc.. 

Sun, 02/19/2012 - 16:25 | 2175628 JW n FL
JW n FL's picture

 

 

LowProfile

Hey JW you douchebag - I asked a question in line with the topic at hand. Why don't you try answering it next time instead of trying to hijack the fucking subject, you cocksucking asshole?!

 

 

The Contracts have already been ruled on in Europe hense the post above via Tyler.

 

You are a PERFECT! example of how and why Stupid can NOT! be fixed.

 

So you are asking people to look into their cyrstal balls and tell you how this latest round of bullshit will be walked back and in what time frame?

 

Do I need to ask correct questions for you? too? really?

 

Since the ECB can now retroactively change any bond contract to whatever it likes and with any nation in its dominion then the valuation of European sovereign debt must be re-examined for what it really is which is no longer what anyone previously thought. Starkly put; the bonds issued by the sovereign nations in Europe are no longer pari passu, on equal footing, with the bonds issued in the United States. We have just passed a clearly defined “break point” where the legal rules were changed to the great disadvantage of all the private debt holders.

and if you still dont GRASP how JP Morgan changing the Laws here in Bankruptcy Court apply DIRECTLY too your question..

well, I have done all I can.. maybe there is someone who speaks fluent stupid here who is willing to waste the time trying to dumb down the facts for you, some more.

Sun, 02/19/2012 - 17:15 | 2175801 LowProfile
LowProfile's picture

I watched it.

I agree with it.

But it doesn't answer my question.

You failed to understand my question.

Go fuck yourself.

Sun, 02/19/2012 - 14:12 | 2175264 spiral_eyes
spiral_eyes's picture

Germany are probably the only advanced Western nation with a really deeply ingrained phobia of printing money. In reality perhaps they should be more afraid of Bruning-era deflation, but that's the way it is. They will do whatever is in their power to avoid shitting Benny Euros above their monetarist targets.

Easier — at least for now — to try and abrogate the contracts.

Sun, 02/19/2012 - 15:00 | 2175276 LowProfile
LowProfile's picture

I'm not sure I agree, but thank you Spiral.

Edit:  Ah...  "For now".

...Thanks, got it.  Makes sense.

Sun, 02/19/2012 - 15:11 | 2175464 CrazyCooter
CrazyCooter's picture

I think SpiralEyes is pretty spot on; the German population is not going to desire engaging in large scale printing. Thay simply have too much living memory of hellish money chaos. There is a reason these cycles are longer than a full human generation; people have to forget before their grandkids can be fleeced again.

This said, it should be noted that, the German elite are quite interested.

How things are pitched to the public, the way deals are put together, and the way democratic "representatives" chose to behave are among the many variables. I think the same sort of thing is going on in the US; the public wants to see Wall Street hang, yet nothing changes.

Will have to wait and see which tectonic plate ends up on top of the other ... when the winner is picked, the world will assuredly shudder.

Regards,

Cooter

Sun, 02/19/2012 - 15:24 | 2175512 LowProfile
LowProfile's picture

Agree, but without printing to cover every last scrap of debt, the Eurosystem implodes.  Debt-based systems demand this reaction, as a debt-spiral deflation destroys them to a negative number of fiat currency units.

So, FIRST they abrogate contracts.  This would be EUR bullish (Yay!  Everything is fixed.  We can stop printing now.).  THEN they print (...Oh shit!  Everybody quit buying our debt because nobody trusts us anymore, and there's not enough income to support the debt!  Quick!  Print up more EUR cash to cover it!).

The USD moves opposite the EUR.  So short term, dollar sinks, medium term rallies, long term craters.

...Did I miss anything?

Sun, 02/19/2012 - 15:59 | 2175624 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=EB319yIHZdE&feature=g-vrec&context=G27e777fRVAAAAAAAABA

Keiser Report: Scam On Epic Scale (E238)

Uploaded by RussiaToday on Jan 19, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss 419 scams and Tim Geithner's gimp. In the second half of the show, Max talks to financial blogger and semi-retired Wall Street executive Warren E. Pollock about MF Global, wealth confiscation and bank holidays.

KR on FB: http://www.facebook.com/KeiserReport

if you were to watch the Video..

the Video..

in the GREATEST! DETAIL POSIBLE!

Would Describe the ANSWER!

To the Question YOU ASKED!

but since you are toooooo fucking stupid to be able to push the PLAY BUTTON!

I will answer YOUR QUESTION AGAIN!

"SELECTIVE INTERESTS" is the President being set in Bankruptcy Courts!

as it applies to Segregated Accounts!

You Checking, Savings, Money Market and / or Trading Account are by Definition Segregated Accounts.

Now if you don’t understand the BIG WORDS! used too pacify the Sheep! it is because YOU ARE A FUCKING SHEEP!

I answered your Question; you lack the ability to comprehend the language used to keep you in the dark... Hence the Video!

no good deed goes un-punished.

 

Sun, 02/19/2012 - 16:01 | 2175631 LowProfile
LowProfile's picture

Yeah, I'm going to sit through 25 minutes of something that MIGHT answer my question?

Sum it up, motherfucker!  Does it say whether the ECB PRINTS, ABROGATES CONTRACTS, or BOTH, and in WHAT ORDER.

Does it answer that?  I BET IT DOESN'T.

Douchebag!

Sun, 02/19/2012 - 16:10 | 2175643 JW n FL
JW n FL's picture

 

 

The Contracts have already been ruled hense the post above by Tyler.

 

You are a PERFECT! example of how and why Stupid can NOT! be fixed.

 

So are you asking people to look into their cyrstal balls and tell you how this latest round of bullshit will be walked back and in what time frame?

 

Do I need to ask correct questions for you? too? really?

 

Since the ECB can now retroactively change any bond contract to whatever it likes and with any nation in its dominion then the valuation of European sovereign debt must be re-examined for what it really is which is no longer what anyone previously thought. Starkly put; the bonds issued by the sovereign nations in Europe are no longer pari passu, on equal footing, with the bonds issued in the United States. We have just passed a clearly defined “break point” where the legal rules were changed to the great disadvantage of all the private debt holders.

 and if you still dont GRASP how JP Morgan changing the Laws here in Bankruptcy Court apply DIRECTLY too your question..

well, I have done all I can.. maybe there is someone who speaks fluent stupid here who is willing to waste the time trying to dumb down the facts for you, some more.

Sun, 02/19/2012 - 17:16 | 2175804 LowProfile
LowProfile's picture

I watched it.

I agree with it.

But it doesn't answer my question.

You failed to understand my question.

Go fuck yourself.

Sun, 02/19/2012 - 17:44 | 2175865 LowProfile
LowProfile's picture

Voting it down doesn't change the fact it doesn't answer my question, dicksmack.

Sun, 02/19/2012 - 18:26 | 2175944 ZippyBananaPants
ZippyBananaPants's picture

Plus one for dicksmack

Mon, 02/20/2012 - 03:06 | 2176948 CrazyCooter
CrazyCooter's picture

I totally read dicksmack as bismark ... I took it as a slap against German sovereignty ... so, dug this up ...

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

... then I went to reply ... and realized I was less off topic than most of the people up thread ... and proceeded ...

Regards,

Cooter

Sun, 02/19/2012 - 21:37 | 2176455 Dave Thomas
Dave Thomas's picture

Now he's just fucking with you, you know that right?

Sun, 02/19/2012 - 23:31 | 2176704 LowProfile
LowProfile's picture

Yep, I noticed.

Good to find out the number of banker trolls here though.  I'm guessing 6-12.

Sun, 02/19/2012 - 15:49 | 2175597 Eally Ucked
Eally Ucked's picture

I think they will delay printing until they find formula how split benefits of it equally between EZ countries. It will be very difficult task. 

Sun, 02/19/2012 - 15:59 | 2175623 LowProfile
LowProfile's picture

Thanks Eally, I agree.

 

Sun, 02/19/2012 - 16:47 | 2175743 Ghordius
Ghordius's picture

+1 or something similar
Though LTRO is a good alternative to classical printing and it makes the receiving banks more supple & pliant.

Sun, 02/19/2012 - 14:51 | 2175385 macholatte
macholatte's picture

 

Greece must service €14.5 billion of debt on March 20 and, before EU-IMF cash can flow into its accounts, persuade private creditors of the country, mainly banks, insurance companies and funds, to give up on 70 per cent of their claims.

----

Mr Schäuble maintains that since Greece is already regarded by the financial world as bankrupt, a formal bankruptcy would have no negative consequences for other euro members.

Germany drawing up plans for Greece to leave the euro

http://www.telegraph.co.uk/finance/financialcrisis/9091021/Germany-drawing-up-plans-for-Greece-to-leave-the-euro.html

Sun, 02/19/2012 - 14:56 | 2175404 MsCreant
MsCreant's picture

Can you say credit event, my fellow Bitchez?

Sun, 02/19/2012 - 15:01 | 2175426 spiral_eyes
spiral_eyes's picture

Hold on your "event", I can say global credit freeze...

Sun, 02/19/2012 - 15:58 | 2175620 kaiserhoff
kaiserhoff's picture

Was thinking about Leo, and all those like him.  All is not lost.  Rusky Emperial Bonds are selling for about 90 bucks regardless of face - as collectors items;)

Sun, 02/19/2012 - 16:56 | 2175766 Everybodys All ...
Everybodys All American's picture

I agree and I might add it also says credit event by default to all other European sovereign debt that gets shall I say the least bit encumbered. ie. Portugal, Italy, Spain, etc.

Sun, 02/19/2012 - 23:02 | 2176641 Assetman
Assetman's picture

I'm waiting to see what sort of hallucenogenic setup the Euro-elite has created this time around to avoid the next credit event.

And boy, it's bound to be a doozy.

 

Mon, 02/20/2012 - 01:15 | 2176855 MsCreant
MsCreant's picture

We used to speculate awful stuff on these threads. Things have moved far beyond any story lines you and I came up with. Those were merely tales of explotation and loss. This stuff is Alice on too many mushrooms who has fallen down the rabbit hole and cannot get up, ever.

Damn, it's good to see you post. You know you are one of my favorite folks around here. I'm only sad you did not address me as McCreant of the Clan McCreant!!! I figured you had evolved beyond us or something, like Rocky upthread who posts so little now but stays with us. There are a number of old timers who lurk. I wonder if we are an army, if applied well?

Hope you, your level headed daughter, carefree son, and significant other are doing well. Things change and remain the same, until they don't. 

Your avatar will soon move on. Wonder where to next for Timmy? 

Love you, at least as much as is possible through pixels, bandwidth, and electricity.

 

Tue, 02/21/2012 - 11:09 | 2180806 Assetman
Assetman's picture

I love you, too, m'lady.

Sun, 02/19/2012 - 15:41 | 2175571 EHM
EHM's picture

Hey I see Riot Dog in that picture. Good to see he's still at it.

Sun, 02/19/2012 - 23:48 | 2176732 MinnesotaMD
MinnesotaMD's picture

Germany has a plan for Greece to leave the Euro, it's called making the conditions of stAying in so repugnant that they can't politically pull it off in a damn near communist cesspool. Hilariously, Jamie Dimon thinks we're inoculated from the fallout. Even if he means in financial terms only it's laughable. What would Greek people do all day without gainful employment? Desperate and scary things I'm afraid.

Sun, 02/19/2012 - 14:31 | 2175330 irishlink
irishlink's picture

You do not have to be Einstein to figure this out, we are now all buying and investing in the dark. Rule of law does not apply. Anything and everything that Governments are peddling is now totally toxic as we will soon be living in states where all freedoms will be swallowed up by said state.

States peddling tax reliefs to investors should carry a large warning sign BUYERS BEWARE as the rules ,terms and conditions could be retroactively changed a few years into the deal to suit the Government and conditions of the time.

Sun, 02/19/2012 - 14:53 | 2175389 Get the Borrow
Get the Borrow's picture

Hold on a second.  How many Treasuries has the Bernank bought?  How much more will he buy?  Surely you don't think the same thing could happen in the good 'ol USA

Sun, 02/19/2012 - 15:16 | 2175487 Ghordius
Ghordius's picture

To 1: definitely yes. I fear it's even worse, the Dollar has to seem rising so that Oncle Ben can print again, so that the EUR can seem to rise, so that Oncle Mario can lend, and so on...

To 2: I'm not sure about the question. The changes were legal BUT they would not be so in a legal system that uses Common Law principles.

Seen this way, it's a powerful spin in the message "don't trust them, they speak foreign, their rule of law is crazy and barbaric, their debt is worthless, keep your money in the UK/US world."

Powerful spin, well targeted. Go and explain that the countries without Common Law principles do have Rule of Law, and this in a few sentences...

Sun, 02/19/2012 - 15:36 | 2175556 Get the Borrow
Get the Borrow's picture

Way cool Ghord-O.  So Banana Ben can begin printing again.  Wait,  when did he ever stop?  Or slow down?  It's OK tho because he said he could stop/whip inflation in 15 minutes if necessary.  The other guy on 60 Minutes was like Duh,  OK. 

Sun, 02/19/2012 - 16:49 | 2175751 Ghordius
Ghordius's picture

Now it's all about speed of printing, for a while...

Sun, 02/19/2012 - 17:24 | 2175824 LowProfile
LowProfile's picture

And how they take turns printing, which was part of my question that JR n FL the MFAHDB missed.

So, first the ECB abrogates contracts.  This I see as EUR bullish.  Then they have to print, as their bonds can't catch a bid and they have to buy them (EU QE, LTRO, whatever).  This is EUR bearish.

Dollar moves opposite both.  Once the dollar rises enough, the FED prints.

The world then divests itself of dollars, and the USD hyperinflates.

...Sound about right?

Sun, 02/19/2012 - 21:23 | 2176405 Ignatius J Reilly
Ignatius J Reilly's picture

mfahdb roflmfao I like the way you swear.

Sun, 02/19/2012 - 22:16 | 2176543 TX-Mike
TX-Mike's picture

Hey, LowProfile..

First investment(s) for you:  2 very large chill pills and 1 king size stress sqeezy ball !  Good grief man!

#1 you are over thinking all of this.  Cost average your purchases..  Stop trying to time the market, pick a $ amount you are comfortable investing each month, and BUY.... something..

Perhaps if gold (or silver) on a given month is higher than you want, put that money in other long term investments, like, uh, food?  guns?  bullets?  hell how about stock up on toilet paper and toothpaste.  Both of which you will miss badly if SHTF and you didn't stock up.

No ZH'er has a crystal ball, we are all reading the same reports, and each person has a different risk/stress profile.  

Oh, and whatever anti-stress meds you can get, stock up on those too..  Or start an herb garden...

Mon, 02/20/2012 - 04:32 | 2176991 Ghordius
Ghordius's picture

careful with this assumption, this all depends from the specific needs at any point of time. up to now, the FED and the ECB currently have powerful incentives to help each other, so the propaganda machine is set up for an EUR down, and the USD up. Then, Oncle Ben can print, probably this summer, and perhaps using some instrument like LTRO since it's working so well for the ECB. then it might be Mario's turn again.

but if one of the two slips on this ice, all bets are off. the EUR was specifically designed for a possible currency and/or trade war. don't forget it. it's a disposable instrument of financial defence built on the assumption that King Dollar could have funny moments. the purpose of it is to keep the european political and monetary options open while not disturbing the intra-european commerce and supply lines.

the USD hyperinflating? well, this is not a given - it really depends from many, many factors.

Sun, 02/19/2012 - 15:35 | 2175550 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Print. If history is any guide, they will print...as you say.

Mon, 02/20/2012 - 04:03 | 2176537 Element
Element's picture

In theoretical 'MMT-Land', the Govt can totally shutdown and ignore the Sovereign bond market and rates, and just 'issue' its own Govt bonds, as its own 'debt' buyer, and then the State's deficits can be any level required (if they have their own Sovereign currency that is...).

No problem so far ... but in the event of real-world resource constraints (such as if for instance Iranian, Saudi and Russian oil and nat-gas scarcity resulted, for months) an economy dependent on monetisation may quickly enter an inflationary death-spiral.

It's a feature and a bug that makes MMT an effective economic-suicide option, if you were so inclined, so you thus never go full-MMT retard like that! ... unless you absolutely have no more palatable choices or default options available.

The ECB appears to be getting ready to go full MMT retard.
 

EDIT:

 

Europe could be left without black gold from Iran
 
 

16 FEB 2012  

 

Source:  Pravda.Ru

http://english.pravda.ru/news/world/16-02-2012/120532-europe_iran_oil-0/
 

Iran's Ministry for Oil Industry rejected the information saying that the country had halted oil shipments to six European countries.

 

It was earlier reported that Iran had suspended oil exports to six countries of the European Union in response to a new package of European sanctions against the Islamic Republic. It was particularly said that Iran had suspended exporting its oil to France, Italy, Spain, Greece, Portugal and the Netherlands.

 

"We reject this information. If we had made such a decision, the Supreme Council of the National Security of Iran would have made the announcement accordingly," an official spokesman for the oil industry ministry said.

 

Many analysts said that Iran tried to put the cart before the horse and fight the enemy with its own weapon. Such a step does not give European countries time to find new suppliers, sign contracts with them and make the oil embargo as least painful to Europe as possible, Vesti.ru website said.

 

In the meantime, world prices have gone up Wednesday against the background of the news from Iran. The cost of Brent oil went up to nearly $120 per barrel. This is a record high for the recent six months. After the Iranian authorities rejected the information, the oil prices dropped to $118.75 per barrel.

--

Black Swans do flock.

Sun, 02/19/2012 - 18:05 | 2175908 boattrash
boattrash's picture

And it looks like I posted my thoughts on "rule of law" in the wrong place as well.

 

I guess to me, one of the biggest deceptions would be in believing there is "rule of law". Look at Barney Frank's housing the butt-pirate prostitute ring in the basement, "Turbo-Timmy" Charlie the Cheat, all of congress asswiping w/constitution. Gov/banks Etc.. to infinity.  Local and county cops tazing and assaulting my family members for walking their dog. Actually tased a non-combative 16 year old boy while in the back of the fucking cop car, 4 to 6 times depending on the official report, or the bragging in the cop-shop parking lot. No wonder I dreamed we held emergency congressional elections. It seemed all of the Congressional Heads (and that is Heads only) were placed behind their name-tags, with the air conditioner set really cold to keep the smell at bay for two weeks, while the elections were held. All people had to do to run, was have balls enough to go throw the head out into the lawn, and enough memory to remember how they got their new seat! Well, ya think I sent up any red flags with this one? Hope the Dream Police don't come after me.

Sun, 02/19/2012 - 19:20 | 2176058 Dugald
Dugald's picture

We are the Borg...Resistance is futile....!

Sun, 02/19/2012 - 21:52 | 2176486 Poor Grogman
Poor Grogman's picture

Unintended consequences lie with both printing and changing laws.

To anticipate which way the ECB may move it would help to know where they are trying to get to. If they are heading toward full central planning soviet style. Then demonizing the HFs and changing rules to suit the situation could be good groundwork\training\conditioning for the masses.
In essence (don't mess with us).

If on the other hand they are just putting out immediate fires without any long term clue then expect printing (lots of printing).

Either way expect unintended blow back, there is too much light being shined on the cockroaches and they are getting skittish.

They might even do something really dumb like start another war.
(at least then people won't start emigrating from Greece to Iran looking for employment)....

Sun, 02/19/2012 - 16:12 | 2175659 Bangin7GramRocks
Bangin7GramRocks's picture

Gee, what a surprise! They ignored a rule to save the financial system of the continent. I'm not saying it is right, but this system hasn't had any reality to it for 40 years, so what's wrong with more bullshit. I know all of you preppers, unemployed losers and bottom rung dwellers are chomping at the bit for a "global financial reset", but its just not happening. They invented trillions and trillions during the past 40 years from nothing. They will continue to invent solutions to keep it going. I'm not advocating putting your head in the sand, but just realize that it's is a fixed game and they will continue fixing it for many years.

Sun, 02/19/2012 - 19:07 | 2176012 Al Gorerhythm
Al Gorerhythm's picture

Of course they will print. They have nothing left to strip (see Greece; the others are dead men walking, epitath and name yet to be chisseled) and so must print wealth whilst it is still perceived as such, therefore they will go down with the rest of the unprepared. Money as debt is still debt. Derivitives as debt is still money (sic) debt. Mountains of deriivitives means mountains of non-redeemable promises (see AIG). --> lots of jumpers.

Yes, this is all unsurprising. What is surprising is that someone is still mocking those preparing, particularly from one who gets it (somewhat). You deserve a down arrow but you also deserve a rebuttal.

Sun, 02/19/2012 - 20:35 | 2176234 johnnynaps
johnnynaps's picture

This unemployed loser would like a reset! It's cool though. Lotta perks to being jobless. Like when you are at work upholding this ridiculous system, I am chillen on a beach or joy-riding my crotch rocket. Then, as the average retarded land whale is getting home from their shift at BK, I'm punching out 6 minute miles and 500 lb deadlifts! My unemployed ass eats what I cook (getting close to gourmet) while the average working slob is pressed for time on their half hour break and settles for a healthy dose of McDonalds. Yep, you can keep your slave-wage career. This loser is doing just fine without selling his body, mind and soul to the over-lords! Now peace out....gotta mix up a drink, blaze sum fire and bask in my greatness!

Sun, 02/19/2012 - 22:36 | 2176585 Bangin7GramRocks
Bangin7GramRocks's picture

Not you bro. You seem cool. Enjoy yourself whatever your financial situation. I'm talking about the poor bitter loser who think that because he has a gun, 500 shells, 100 ounces of silver and some canned beans, he will magically elevate to a higher class after the "reset". What these cocksmokers don't understand is that the rich and priviliged will have 50 guns, 1 million shells, 1000 of gold and entire stockpiles of food. These paranoid losers will remain losers even after the downfall of society.

Mon, 02/20/2012 - 05:15 | 2177004 Element
Element's picture

Sounds like fun to me, but how do you afford 95 octane, fines, and new rubber for said crotch-rocket if unemployed?  Is there some special supplementary entitlement for needy wannabe road-racers?

Sun, 02/19/2012 - 20:35 | 2176235 johnnynaps
johnnynaps's picture

This unemployed loser would like a reset! It's cool though. Lotta perks to being jobless. Like when you are at work upholding this ridiculous system, I am chillen on a beach or joy-riding my crotch rocket. Then, as the average retarded land whale is getting home from their shift at BK, I'm punching out 6 minute miles and 500 lb deadlifts! My unemployed ass eats what I cook (getting close to gourmet) while the average working slob is pressed for time on their half hour break and settles for a healthy dose of McDonalds. Yep, you can keep your slave-wage career. This loser is doing just fine without selling his body, mind and soul to the over-lords! Now peace out....gotta mix up a drink, blaze sum fire and bask in my greatness!

Sun, 02/19/2012 - 22:34 | 2176576 object_orient
object_orient's picture

So pumped from deadlifts, hits the save button twice. Unnnggghhh!

Sun, 02/19/2012 - 18:04 | 2175907 Freegolder
Freegolder's picture

The article says:

'the ECB swapped their bonds for new Greek bonds with the assent of the Greek government and it is now a done deal.' 

So they had the consent of the Greek government for the deal. The article seems to imply there was something 'dodgy'about this! Not at all. The Greek government agreed, deal done.

Sadly the author, and indeed most of the world, and certainly the ZH part of the world, just do not grasp that the ECB knows precisely what it is doing. It knows.

It knows:

  • that a huge chunk of peripheral government debt is junk.
  • that most of it will never be repaid (not ever, ain't gonna happen).
  • that QE by a central bank to support goverments directly is the road to hyperinflation, so it won't do it.
  • that it must protect its own balance sheet for the time being, whilst the global currency war end game is being played out (versus the dollar of course).
  • that this will force market holders of peripheral debt to avoid throwing good money after bad, and maybe to attempt to sell the holdings the have already.
  • this will crytalise the Eurozone's sovereign debt crisis far sooner rather than later (a goal of the ECB).
  • This will strengthen the Euro, as the issues will be faced, reality will be faced, true austerity, the true nature of economic capitalism will come to the fore (exactly unlike the US).
  • Once every sovereign has bitten the bullet, the market has been cleansed, as painful as that might be, rebuilding can begin, and you can bet sovereigns will not make the same mistake again in a hurry, AND NEITHER WILL THE LENDERS
  • that global currency wars are a long game, and it has been fighting this was since the Euro was conceived back in the 1960s.
  • that the US is adapting exactly the opposite policy, saving all the bad debts, monetizing government spending, refusing to take its medicine.
  • that within 5 years the Euro will still be a VERY strong currency, with marked-to-market gold rising in reaction to dollar debasement.
  • that the rest of the world will grow increasingly annoyed with the US for its 'kill the dollar' policy, and so Euro usage will grow, especially as the Eurosystem has such large marked-to-market gold reserves.
  • that the US cannot EVER voluntarily mark its gold to market, as that would immediately signal the end of the road for the dollar.

Yes, the ECB knows all of this, and it acts every day to maintain the Eurosystem's banking liquidity, to preserve the currency, and to force economic reality on the Eurozone countries, as painful as that may be.

I rejoice, and so should we all, that a reserve currency is ready for freegold, when the US's exorbitant privilege comes to an end.

Mon, 02/20/2012 - 09:52 | 2177210 Escapeclaws
Escapeclaws's picture

Great post! Hope you are right.

Sun, 02/19/2012 - 14:02 | 2175220 LetThemEatRand
LetThemEatRand's picture

There is no Rule of Law.  Even the U.S. Constitution is subject to endless interpretation.  Ever notice how many Supreme Court decisions follow "party lines"?   Notice how many times we've been told that the bad behavior that led to the 2008 crisis may have been dishonest and unethical, but violated no laws?   The law is whatever the elite want it to be. 

Sun, 02/19/2012 - 14:13 | 2175263 LowProfile
LowProfile's picture

...And that's what you get when you allow collectivist excuses to weasel around The Constitution.

Do NOT follow this link or you will be banned from the site!