This page has been archived and commenting is disabled.
Egon von Greyerz: There Is No Deus Ex Machina Left
From Egon von Greyerz of Gold Switzerland
Deus Ex Machina
With most of the world’s major economies as well as the financial system bankrupt, there is only one solution that can save the world economy. Like in the Greek tragedies, Deus ex Machina is now the only way that the world can avoid a total economic collapse. This would involve God being lowered down onto the world stage and miraculously saving the plot.
For those few who believe in this, may God bless them. But since this is a very unlikely solution most people will instead rely on governments and central banks to save us. But how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve anything. They created the problem in the first place and are therefore totally unsuitable to play the role of Deus. The main objective of governments is to stay in power and thus to buy votes. Therefore they are incapable of taking the right decisions. And the opposition, aspiring to power is even less suitable since they will lie through their teeth and promise the earth in order to be elected. (We know that there are exceptions like Ron Paul, but the voters will most probably find his medicine too strong to swallow.)
What about central bankers, can’t they save us? Unfortunately any sensible person who becomes a central banker loses all his senses and becomes a prisoner of the political system.
Solution?
So if there is no Deus ex Machina and if governments or bankers can’t rescue the world, who can and what is the solution. Let us return to the wise von Mises to look at the options available now:
“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”
Ludwig von Mises
Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis. We have reached the end of the road and are now staring into the abyss.
The credit manufacturing system that started in 1913 when the Fed was founded, began its terminal phase in 1971 when Nixon abolished gold backing of the dollar. It has been clear to us for at least 20 years that the outcome was inevitable. It was never a question of “if” but only “when” it would happen. It is now clear to us that the false prosperity that the world has experienced by printing unlimited amounts of money will very soon come to an end. Thus the “if” and “when” conditions are now satisfied so the remaining question is HOW?
To try to answer this let’s return to Mises: “The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further credit expansion ….”
To stop the money printing and credit creation would be the only sensible way of ending the failed quasi-capitalist, socialist experiment which is in the process of destroying the structure of the Western world. For almost 100 years we have lived on a system based on debt. This has created a false prosperity as well as false values. The transfer of capital from private enterprise to government by massive taxation is approaching 50% in many countries (see table). The average for 18 industrialised countries is almost 40%. This means that on average 40% of the productive economy is transferred to a non-producing entity (government) which wastes most of the money in the process of redistribution. But not only that, since the state has taken over up to 50% of the economy in these countries, the desire to work, to strive, to take risk and to invent has been taken away from a major part of the population.
For a great many people it is now totally natural to rely on the state for their needs rather than on themselves. And the state needs to borrow/print ever increasing amounts to perpetuate this economy based on an illusion. This situation is totally untenable. Since any additional money printing will only exacerbate the crisis and make the final collapse so much greater, the swiftest solution would be let the financial system implode now. We need to reset the world to a level which is sustainable. The consequences of this implosion would be a collapse of the financial system and a reset of debt to zero. Although this is unthinkable to any government or politician, it would be by far the quickest way to get the world back on its feet with no major debts, minimal government interference, and no central bank that can print money. It would be like a forest fire getting rid of all the dead wood. Out of that would rise masses of green shoots in the form of strong unchequered growth. The transition will of course be traumatic and the current generation will experience enormous hardship. But not voluntarily abandoning the money printing now will just delay the inevitable and the consequences will be dramatically greater and affect many future generations.
Anyone who has followed my articles will know my view that governments worldwide are totally incapable of stopping the money printing. This is their only means of staying in power and buying votes. But not only that, this is the only method they know. This has been their patent solution to all economic problems in the last decades. Not that this is new in history. Most empires have resorted to diluting the value of money by reducing the gold/silver content of coins or printing paper money. But as far as I know it has never before been done by so many countries simultaneously to such an extent.
Since there won’t be any voluntary abandonment of credit creation what will the likely outcome be? Again let’s use Mises words: “…… a final or total catastrophe of the currency system involved”. The problem this time is that we are not talking about one currency or one country. No, we are talking about most of the world’s major currencies. We have been used to measuring currencies and economies on a relative basis i.e. against each other. But this is a total fallacy since all major currencies have been in a race to the bottom for the last 100 years. Most currencies have lost between 97% and 99% against real money –GOLD – since 1913. And since 1999, most currencies have lost 80% or more against gold. So paper money has been a very poor measure of wealth in the last 100 years. Governments are creating credit and paper money and consequently through their fraudulent actions “stealing” from the people whilst at the same time increasing the people’s dependence on the state. And the people does not understand that the value of paper money is declining continuously. But gold reveals the deceitful destruction of paper money. This is why governments do not like gold and try to suppress the gold price.
Endless Money Printing – QE
And how will the currency system collapse? The answer to this question is very simple – through endless money printing. There will be no lasting austerity programmes in any country that can print money. Governments are incapable of sticking to austerity measures since in the end that is a guaranteed way of losing power. As power is the main purpose of all governments, they will use any method to retain it. Within the Eurozone, individual countries can of course not print money but the ECB and the IMF will take care of that. So whilst world leaders are procrastinating and bickering in G8, G20 and all other “summit” meetings, it is absolutely guaranteed that the final outcome will be one QE package after the next. Governments and central banks know that without limitless money printing there would be a deflationary collapse of the banking system and world economy.
The table below shows the financing requirements of the PIGS countries in the next few years. Just Italy and Spain will require €1 trillion in the next 4 years and of that 1/2 trillion Euros in 2012. Only printed money will take care of that.
For many years it has been absolutely crystal clear to some of us (sadly a very small minority) that many major sovereign nations are bankrupt as well as the world financial system. Banks are only surviving because they, with the blessing of governments, are allowed to value trillions of dollars of toxic and worthless assets at full value. And on top of that there are more than $1 quadrillion outstanding in derivatives. These are outside the banks’ balance sheets and there are virtually no reserves against them. The banks are netting the value down to virtually nothing and then applying a miniscule reserve against this net amount. First of all, the netting is only valid when the counterparty pays. When there is a counterparty failure, which is very likely in the coming financial collapse, gross remains gross and the $1 quadrillion remains $1 quadrillion. Secondly, a major part of the derivatives are worthless or not protecting the investors as we have seen with for example Freddie Mac, Fannie Mae, Lehmans and lately MF Global. MF Global had bought CDs to hedge their investment in Greek debt. But they hadn’t understood what they had bought and it turned out it offered no protection at all.
Hyperinflation
The “final or total catastrophe of the currency system” will occur as a result of the QE or unlimited money printing that will very soon start in the EU, USA, UK, Japan and many more countries. And this currency destruction will lead to hyperinflation as I have stated for many years. Throughout history, substantial government deficits leading to money creation or printing have always been the cause of hyperinflation. Because hyperinflation is always the result of a collapsing currency and not of excess demand.
To any thinking individual, it is totally incomprehensible that governments and central banks believe that an insolvent world can be saved by debt issued by bankrupt nations and then bought by the issuers themselves as there is no other buyer. This is the perfect recipe for self-destruction and “total catastrophe of the system.”
IMF, EU and other failed monstrosities
Time and time again, the world creates massive costly, bureaucratic and unaccountable structures that have idealistic and totally unrealistic objectives.
Take the IMF for example. This is what their mission statement states: “The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”
If financial stability, high employment, sustainable economic growth and reducing poverty are the objectives of the IMF, then they have failed on every single point. So here we have an organisation that receives/borrows money from mainly bankrupt states and then lends the money to countries that cannot or will not ever repay the funds. And in order to carry out this totally futile task, the IMF takes a major cut in between to finance its costly and failed operation. The world does not need monstrous and costly structures that totally fail in their mission. Thus, the IMF should be closed.
Turning to the EU, they state on their website: “The main objectives of the Union are now to promote peace, the Union’s values and the well-being of its peoples”. There are other stated objectives such as: “sustainable development, based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.”
The EU or the EEC as it was first called was created in the late 1950s. This was a prosperous period in the world economy based on real growth (not debt). As often is the case, politicians with illusions of grandeur create superstructures which only function in good times. The EU’s main objective of creating peace and well-being of the people is now being severely tested. If we for example asked Spanish youth (50% unemployed) about their well-being or Greek people or the Portuguese etc, we would get a tirade of abuse and complaints about the EU. Instead of “creating peace”, we are seeing major tension within the EU that could lead to serious conflicts. And as to “balanced economic growth and full employment”, this has all come to an end. The false prosperity, mainly based on debt, has also come to an end and the EU can only survive intact with the aid of endless money printing. But even that would only be a temporary reprieve. The EU is a failed experiment which is extremely costly and inefficient. The economic ruin of Ireland, Greece, Spain, Portugal, Italy, France etc would not have happened to the same extent without the EU. Like all artificial fiat currencies, the Euro was doomed to fail. Without the Euro, countries like for example Ireland, Spain or Greece would have recovered much faster.
Final or total catastrophe
So we are heading to the final stage or as Mises says a “final or total catastrophe of the currency system involved”. I don’t think that even Mises envisaged at the time that this could involve a major part of the world rather than just one country. This is why this catastrophe will be unprecedented in world history and have consequences that will affect the world economically, socially and geopolitically for a very long time.
Wealth Preservation – Gold
Since 2002 we have advised investors to put up to 50% of their assets into physical gold, stored outside the banking system. Gold has appreciated between 15% and 20% per annum since 2002 depending on the base currency. And most stock markets have declined 70-85% against gold in the last ten years. In spite of this most major investor groups (institutional, funds, asset managers or individuals) own no gold. Gold is money and reflects the total destruction of paper money. But most investors do not understand gold. Common arguments I hear is that “you can’t eat gold” or that “gold pays no return.” It seems that these investors prefer to eat paper money. And as to the argument that there is no yield on gold, who needs yield on an asset that has massively outperformed all major asset classes in the last 11 years. And if we look at 2011, gold has greatly outperformed stock markets in most major countries. Whilst stock markets are down between 1% and 24% in 2011, gold is up more than 20% against all major currencies. So in real terms (gold) all stock markets are doing very badly but still investors persist in riding these falling trends.
Stock markets will benefit temporarily from QE but it is still our view that they will fall another 90% against gold in the next few years.
The correction in the precious metals is now likely to be over and we should see the metals going to new highs in 2012. I had the pleasure of becoming acquainted with Alf Field at the recent Gold Symposium in Sydney where we were both speakers together with Eric Sprott, John Embry and Ben Davies amongst others. Alf is one of the few in the world, if not the only one, who knows how to apply the Elliott Wave principle successfully to gold. Alf’s next intermediate target is at least $4,500 and the ascent to this target could be rapid. That would probably mean a silver price of $150. These technical forecasts certainly confirm the fundamentals as outlined in this article.
The world is in a total mess and there is absolutely no solution to this unprecedented crisis. The hyperinflationary depression that we will experience in the next few years will totally destroy the majority of the credit based wealth that has been created in the last few decades.
In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system. But for investors who continue to follow conventional wisdom, they will sadly find that their investment strategy was merely conventional and contained no wisdom.
»
- 20003 reads
- Printer-friendly version
- Send to friend
- advertisements -
It's a worldwide fiat ponzi.
The United States Dollar (USD) is the world’s most important currency because the USD is the world’s reserve currency and most of the world’s central banks currency reserves consist of USDs. Oil, by far the world’s largest commodity, is traded almost exclusively in USDs. The USD gained world reserve currency status by claiming to be fully backed by gold and exporting USDs to the central banks of world. Central banks were allowed to trade in their USDs for gold at $35 per ounce until 1971, when Nixon severed the USDs link to gold in order to stop the US from running out of gold. Through the scam of counterfeiting gold, or printing more notes redeemable in gold than actual gold exists, value was stolen from the actual gold and that value was transferred to the counterfeit notes. When the counterfeit notes become worthless, much of the stolen value will be returned to actual gold. The Fed is in control of the greatest scam ever pulled and the scam is in the process of being revealed.
TheSilverJournal.com
Yes, so what is your prediction regarding that "scam", sorry "revaluation"?
When fiat collapses, likely sometime between the next six months and the next five years, the currencies of the world will be gone but all of the goods and resources of the world will still exist. Goods will then be purchasable with a different medium of exchange and if that medium of exchange is not entirely silver and gold, it will certainly move largely towards silver and gold having much more purchasing power than they have today. The enormous amount of purchasing power that gold is set to gain is evidenced by the size of the bond market which completely dwarfs the size of the gold market. At the minimum, the purchasing power of an ounce of gold will be equal to the amount that $10,000 purchases today. When a large amount of purchasing power flows into the precious metals, the silver to gold ratio will compress. In this precious metals bull market, the silver to gold ratio is set to hit at least ten to one, meaning that one ounce of silver will have the purchasing power of at least the amount that $1,000 is able to purchase today.
I have a similar valuation, with gold/silver ratio being compressed even more, depending on what manufactering looks like. We use silver a lot and in an "old-fashion" society, even more silver and copper. Our current tecnological state certainly is not going to hold if all fiats go to zero. Major supply line disruptions will happen overnight, so the immediate response will be massive devaluation followed by the realization that certain things still need to be delivered. Same as it ever was, possession has always been nine tenths of the law. In this scenario, it will be all that matters, even when the shooting stops.
Never before has the entire world been run completely on fiat and when the bubble pops, there's a good chance the rush out of fiat could happen fairly quickly. People do care about their wealth. All of that pressure out of fiat and into wealth preserving assets, specifically precious metals, could lead to mind boggling numbers which I mostly don't even bother talking about because my lower estimates are mind boggling enough to those unfamiliar with where money comes from.
At the max, I'd say it could compress to 4 to 1 and gold could hit a purchasing power that $50,000 buys today, which leaves silver at $12,500.
In the words of House Stark:
Winter is coming.
i find myself using that a lot (along with "I see dead people.")
So your 4 to 1 prediction is based on things being so frantic that they overshoot? I don't see how it could be less than 10 to 1. I like 25k and 2.5k myself.
10 to 1 seems like a pretty good equilibrium target seeing how little physical silver there is, how much silver is used up in industry, as well as the end of the great fiat expiriment. 4 to 1 would probably be an overshoot considering that there is 16 X more silver in the earth than gold and if it gets there, it probably won't stay there for long. Overshoots happen all of the time as markets are constantly trying to find equilibrium and when it swings too hard one way, it often swings back through equilibrium too hard the other way.
I'm sick of the analysis that says these ruling class are all incompetent. The key here is to realize that this IS NOT INCOMPETENCE, IT IS INTENTIONAL. I know it does not make for a happy bedtime story, but the global elites think that if they could just control everything, the world could be perfect (or at least better than what we have now). No, there is no one out there with power that cares about the well-being of you or your family, only you.
The crisis is being fomented on purpose to grease the skids for the slide into Global governance They have the destination all planned out, all they need to do is make the present place unpleasant enough to get us to want to move. Then they will guide us ever so gently into their frameworks, touting them as the panacea for all of the worlds ills.
The Globalists base their opinions and worldviews on revisionist history that glorifies Humanism, Marxism and central planning. They excuse their foibles the same way members of the church of Satan do; anyone that can be duped deserves it because they are not as smart as you, and there is nothing wrong with getting THINGS for ones-self even if you have to run over a few other people to get it.
+1000
Picture perfect post.
Side note, the "incompetent" ones spotted are just useful idiots. They are the plasuible deniability part made visible.
They are needed at times to advance the game.
Future scapegoats
I guess it depends on how bad it will get.
If civilization prevails Gold might be the new currency.
But its not unlikely that at least for a few years in many parts of the world, including the US lead will be the currency.
Say 'Hello' to the 7.62 checkbook.
The destruction is intentional, but it's not because they think they can make the world a better place. It's because they can make a lot of money by doing it. If they turn us all into debt slaves working for them, why wouldn't they? I mean when they're making money, they're making money. Don't begrudge them making a few bucks...
Some are like that.
The new liberal communists actually believe they are doing "gods work". Their god is the environmental movement and many other "replacement religions"
Nobody has to be vile: The Philanthropic Enemy
http://www.lrb.co.uk/v28/n07/slavoj-zizek/nobody-has-to-be-vile
"Etienne Balibar, in La Crainte des masses (1997), distinguishes the two opposite but complementary modes of excessive violence in today’s capitalism: the objective (structural) violence that is inherent in the social conditions of global capitalism (the automatic creation of excluded and dispensable individuals, from the homeless to the unemployed), and the subjective violence of newly emerging ethnic and/or religious (in short: racist) fundamentalisms. They may fight subjective violence, but liberal communists are the agents of the structural violence that creates the conditions for explosions of subjective violence. The same Soros who gives millions to fund education has ruined the lives of thousands thanks to his financial speculations and in doing so created the conditions for the rise of the intolerance he denounces."
Thus Soros encourages globalism as the solution....to a problem he is creating himself.
Just make sure everyone recognizes that the government will never allow private citizens to redeem Gold or Silver at those prices. So if you have plans of paying off debt with your PM (especially Gold) you had better pick a place to unload it well before things go completely berserk. The physical market will separate from the paper ETF price peg at some point, I think this might be a good time to start thinking about cashing out your tidy profit. The big banks lose some ability to control of PM prices when that happens, so nearly anything could happen with the legal aspects of Gold ownership after that.
Just make sure everyone recognizes that the government will never allow private citizens to redeem Gold or Silver at those prices
If the government wont allow redemption another competing mob(government) will. It's a matter of finding the proper buyer at the right time.
There you go. Same for any assets at any given time really.
So sorry to piss on your trite cliche, but raw power is ten tenths of the law. If you don't have the strength to hold it, current "possession" of anything means exactly dick.
That we learned the Golden Rule
What you can't buy you gotta steal
What you can't steal you better leave
Ludwig Von Mises > John Maynard Keynes
Sovereignty > NWO
Thomas Jefferson > Franklin '4 Term Packed - The SCOTUS' Roosevelt
Constitutional Government > Arbitrary & Transitory Passion of Legislators
Gold/Oil (or anything finite w/ value) > Infinite Fed Reserve Notes/Euros (aka ass wipes)
Tebow > The Bernank
Oh sure, everybody loves Tebow now...
...with the exception of us godless queers.
So.
Posting after a break of about 2 months.. tell me if I have missed anything since Oct.
Europe's last known position in Oct 2011 - Twas a Hobson's choice.. Europe print's and suffers hyperinflation or does not print and collapses into a depression spiral both the choice impact the global economy..
The situation of the DEF chairman- Our balls are pinned to the wall and Merkozy hold the hammer.. ouch the wait for the blow hurts more than the blow..
HAS ANYTHING CHANGED SINCE I LAST POSTED ON ZH.. :) :)
TYLER DURDEN FOR PRESIDENT.
TYLER DURDEN FOR PRESIDENT.
Dooooooooooooooooooo!
Raaaaaaaaaaaaaaaaaaaaay!
Egooooooooooooooon!!!
I'm guessing the detractors aren't quite getting this joke...
Well then, I guess I will go long security services to protect any remaining wealth. Bring it!
IOW, we're doomed.
The world is in a total mess and there is absolutely no solution to this unprecedented crisis."
Tell us something we don't know.
Nah, there's a solution: WWIII.
You're only doomed if you're in the wrong place at the wrong time.
Got Shovel?
upside: plenty of shovel-ready jobs.
Nah. IOW, buckle up (Au, Ag, and Pb), it is going to be a bumpy ride!
strange.
it appeared to me someone already has dropped a deus on the economy.
soon enough the newly poor will be pissed at that god thing for not helping them and start shooting shit into the sky at it.
Do take cover, as they forget it must come down if gravity wins out over the god thing.
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States." -- Sen. Barry Goldwater (Rep. AZ)
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford
Better a horrible end for Euroland, or endless horror?http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100013721/be...
"I'll take endless horror for $100T, Alex."
Hey, what's with the all caps on the Mises quote?
Are you trying to make him look like a madman? ;-)
'In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system.'
Still? That banking system needs a reset.
can they kick the can till Christmas?
damn...get a down arrow for asking a question. Sorry I am new.
You could simply say hi and someone will kick you.. Get used to it, it's fight club, welcome.
"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it." -- Congressman Louis T. McFadden in 1932 (Rep. Pa)
60 Minutes Flashback:
Pelley: Can you act quickly enough to prevent inflation from getting out of control?
Bernanke: We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time. Now, that time is not now.
Pelley: You have what degree of confidence in your ability to control this?
Bernanke: One hundred percent.
Bernanke: One myth that’s out there is that what we’re doing is printing money. We’re not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way.
"Bernanke: One myth that’s out there is that what we’re doing is printing money. We’re not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way."
Bernanke is right!
They are not printing money, the're printing DEBT! Debt and money are opposites.
The currency supply is not changing because the people aren't borrowing and the banks are't lending.
re: the M1 Multiplier- http://research.stlouisfed.org/fred2/series/MULT
I honestly don't know if you're being serious or not, but debt & money are precisely the same thing when you live within a fractional reserve banking economy, use fiat that is literally conjured from thin air and has zero inherent value (it has a value based on very complex psychological gaming, the success of which is highly variable, and can often be very transitory), and for each and every digitized unit of "money" conjured from thin air, said unit of "money" appears instantaneously as a "debt" on some balance sheet, somewhere.
Perhaps it's time to define terms.
Many use words like "money", "debt", "fiat", "liquidity"," intrinsic value", "fractional reserve banking", "store of value", etc. without ever providing definitions (kind of like the IRS circular references to define "income").
Money and Debt are the basis of all the others so we should begin with them:
The difference is simple- Debt is borrowed into circulation at interest.
Money is placed (spent) into circulation without interest owed.
So, the two are easily defined by one word- interest!
Both can be used as purchasing media.
Debt can only be retired through either a bankkruptcy or by paying it off with money. When either happens it is removed from circulation (x10 as the negative effect of fractional reserve banking takes over).
All of our currency (dollars) are borrowed into circulation at interest and therefore all of our dollars are debt.
Our coin (even though they are counterfeit made to look like silver but are not) are money as they are spent into circulation with no interest owed.
This was not always the case. When I was young, Federal Reserve Notes (FRN's, green seal), U.S. Treasury Notes (red seal), Silver Certificates and coin circulated together. FRN's were (are) debt, U.S. Notes and Silver Certificates were money. I don't recall anyone making the distinction even back then. All we now have for currency is FRN debt.
U.S. Treasury Notes (red seal) and Silver Certificates (both money) were removed from circulation many years ago, but our coin remains- the last reminder of real money- and an ever present danger (to the banksters) of their debt based currency- which they must get rid of it before we notice.
“It is the economic equivalent of a 90% tax on savers...equal to more than half of all individual income taxes…nearly three times as large as total corporate income taxes.”
This is the financial analysis of Dan Amerman in his stunning report on Bernanke's Great Savers Robbery that finances Bloomberg’s touted recovery. Excerpts :“There is a hidden and deeply unfair ‘tax’ that is costing US savers in excess of $500 billion per year. Through forcing interest rates far below the rate of inflation, the government has effectively created a tax on savings that not only takes all real interest income, but quite deliberately confiscates wealth from tens of millions of savers every year - for the direct benefit of the government.
“As will be demonstrated with step by step, simple illustrations, the government is imposing the economic equivalent of a 90% income tax on savers. The amount taken annually from savers is equal to more than half of all individual income taxes, and is nearly three times as large as total corporate income taxes.
The tax is not uniformly imposed, but instead targets older middle class savers in particular. The effects include invalidating decades of financial planning, and potentially impoverishing millions of current and future retirees…
But what people don't realize is that this steady impoverishment is entirely deliberate and that the federal government is the direct beneficiary. The nation's citizens don't realize that they are being taxed, because no one calls it a tax or overtly passes a law imposing tax. -- The Governments Hidden $500 Billion Inflation Tax on Savingshttp://www.marketoracle.co.uk/Article31937.html
what the fuck economy do you think is out there that can pay this coupon you think you're entitled to??
Are you people with your magic unicorn 5% rates insane?
News flash: for YOU to get your entitled 5%, the BANK has to earn 6% somewhere else.
You know Trav your one caustic ass at times. But you are correct.
But, my boy, you are a socialist, hardly a friend of the saver or the truth. And to think you think the financial sector is not earning its "6% somewhere else." Both Keynes and Lenin said inflation can “destroy the Capitalist System” - the system they wanted destroyed and replaced by a government-controlled social system. As Clarence Carson, Ph.D., said in Basic Economics p.101—“There are many losers in this gain; those who have saved for old age may find their life savings wiped out, and so on.”
The problems we face today exist because the people who work for a living are outnumbered by those who vote for a living, i.e., the socialists.
When there's no safety left at any price, then even the socialists, YOU, will starve.
Further proof: Keynes in The Economic Consequences of the Peace in 1920:
“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily, and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth: Those to whom the system brings windfalls…become ‘profiteers,’ who are the object of hatred of…[those] whom the inflationism has impoverished… As inflation proceeds … the process of wealth-getting degenerates into a gamble and a lottery.
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose… the governments of Europe… are fast rendering impossible a continuance of the social and economic order of the 19th century.” – John Maynard Keynes (p. 235)
What we have right now is not capitalism.
We have Crony Capitalism based on the nefarious transactions of a purely kleptocratic Den of Vipers & Thieves, led by the circle circle jerk of The Federal Reserve 'Bank' - the actions of its New York Branch front and center - and its masters and main beneficiaries on Wall Street and in Manhattan, perpetually raping taxpayers and whatever is now left of the normal, healthy, organic, supply/demand curve based private economy, stealing all of its productive output, for their exclusive benefit.
Keynes was correct in his assertions [and ironically, Lenin's] about how the debasing of a currency, precisely as The Bernank, and all of his predecessors since the canceruous Federal Reserve Act was passed in 1913, have done, but the debasing of our currency is not being done in the context of market capitalism, but in the context of a completely corrupted, nepotistic-revolving door, kleptocratic Crony Capitalist structure (MIC+Finance).
Good post, as usual, TIS. As you say, what we have now is not capitalism.
And I agree. However, the socialists love to paint all capitalism with the crony capitalism brush (even Ron Paul has used it), but I seldom use it. IMO, the result of what they do, including counterfeiting the currency, comes closer to fascism where they use the government as their leverage.
There's no quick solution because the Minsky moment has already arrived in the minds of many people.
"From now on, depressions will be scientifically created." -- Congressman Charles A. Lindbergh Sr. , 1913
"And this currency destruction will lead to hyperinflation as I have stated for many years."
NOPE. Massive, worldwide bankruptcies will lead to massive deflation. And the last safe haven, least bad fiat currency will _temporarily_ be the US dollar. So, save cash and buy _productive assets_ when everything is in the basement, just as the really smart money did during the last Great Depression.
So you think the US is going to be spared the massive loss of faith in all paper? Get real, this is nothing like 1929 or the Great Depression and the US Dollar will be destroyed as well.
no you dumbfuck....we have hyperinflation right now....we have re-hypothecation creating massive liquidity..i would say quadrillions in liquidity is hyperinflation of the money supply.
what comes next is loss of faith in money and massive deflation....i dont see what is so hard about this concept.
We have massive inflation right now with central banks serving as a bulwark. When the money is released into circulation it causes hyperinflation. This will lead to massive HYPERINFLATION and not DEFLATION!!
Again, this has nothing to do with "Japan's lost decade", 1929 or any other BS! There simply is no corollary for anything like this in recorded history of the Earth.
what happens after hyperinflation...?
how long is the hyperinflation period...?
how long will the deflation period be...?
hyperinflation is a short term event....we will live with a depression for decades....
"what happens after hyperinflation...?"
Most likely a new unit of monetary exchange. More centralization and monetization, controlled by the same elite asswipes if they can help it.
how long will the deflation period be...?
That depends, if there will be one. In an ideal world, honest money could be adopted, a quick transfer of wealth and a debt jubilee. Of course that means the current status-quo, ie, the creditors would lose everything and they will fight like a cornered animal to prevent this from happening.
Let me put it this way for you, your Federal Reserve Notes ain't gonna be buying you jack-shit in the year 2015. Is that a difficult concept to understand?
The time to buy is when there is blood on the [Wall]street.
So if that letterbomb to the CEO of BAC would have exploded and killed him... you would have bought stocks....
Looking at the charts right now, that wouldn't have been that good of a idea you know...
Wasn't it sent to Douche Bank CEO in Frenchfurt?
And the last safe haven, least bad fiat currency will _temporarily_ be the US dollar.
I'm happy to send you all my available US Dollars if you want to return me any gold you might have.
BTW, it is not only possible, but the most likely sequence that hyperinflation and deflation both occur. It's actually already happening if you look at things like home prices (deflation) and food (inflation). As the currency tidal wave makes its way into circulation (slowly, but surely), folks will chase staples more and more while they further abandon debt service. Breaking point is when a critical mass realizes the currency is failed, and the jig is up.
MARK MY WORDS....THEY WILL PRINT!!!
Some will, some won't. When a massive, unpayable, largest in history debt bubble collapses, that's hugely deflationary. And even Bernanke isn't stupid enough to think that printing money into hyperinflation will do anyone any good whatsoever.
Well, if the U.S. doesn't print it will be the first time a sovereign currency gained purchasing power during a sovereign default. I can't wait to see it.
I am considering the purchasing of.. Spain..
Let's assume that the U.S. government defaults on its debts and doesn't print. As a result, no one will want U.S. Treasuries. That will destroy the value of the dollar. We will see a complete loss of confidence in the currency, without money printing. Print or no print, the USD is still gonzo.
right lyn, just like nobody wanted russian bonds after they defaulted in late 90s, just like nobody wanted argentina bonds, just like nobody wanted greek bonds after their 17th default, puuleeeasee...........the show always goes on............these short sighted greedy pigs go right back to the trough.....
LynRobison: Yes, that might actually be the path eventually. But even if that's true, there will be a window of opportunity to use dollars to buy productive assets at major depression level prices. I came to this conclusion after a great deal of reading and research and only after coming to that conclusion independently did I discover that Kyle Bass thinks exactly the same. And that's damn well good enough for me.
Yes you will be able to buy cheap assets for little amounts of money. The question is what will be the money and how inflated will the paper be.
I think you've been reading the wrong kind of litherature about the US depression and not the Weimar depression which is the road will walk.
In German, you could buy a appartment block for a roll of gold 20 mark coins. The paper was used to keep the stove going.
winston is "spot on". the hyperinflation camp seems to think ben is just a mindless printer. well, its been 7-8 months and no printing. why? it doesnt work, and he recognizes that. remember folks, if the ship is going to go down one way or the other, ben would rather the country sink in a deflationary spiral than sink through the hyperinflationary destruction of his only source of power, the dollar..........
Kito you seem like a smart fellow, and yes I am the disheveled looking guy in the subway holding the "QE3 is coming! sign at the passengers. I admit this. However you gotta be kidding me. When I read what you wrote I completely fell off my stool, dropped my bowl of rice pudding and my helmet fell off. Greenspan under Bush Jr printed and at least Bush Jr had the courtesy to send us individuals the check. Then Bernak got in there and did QE, Then QE1, Then QE2. Then he did QE 2.5 (twist). It has been 4 months and change since the last "announced" QE ceased. According to you since Twist 2 months ago he has sat down alone in a dark room with his flask and his beard and exclaimed "Ho le shit....I was wrong! From here on deflation is shall be!"
Are you serious? You can't be. Now if you will excuse me I have to urinate in some crevice near the stairs.
its been 7-8 months and no printing.
I think you have a narrow definition of "money printing." Our boy Ben says he wasn't "printing" during the sailing of QE2, but we know better. Oh, and operation twist, ZIRP, and anything that facilitates expansion of liquidity at a negative real cost is actually money printing in my book.
Anything created to service debt that is a substitute for the returns earned from employing the debt is "printed money."
Recalibrate in terms of currency debasement, measured against gold, and the only conclusion that is reasonable is that printing has been going on incessantly. And yes, long-lived, presumed durable assets (are) and will be massively deflated...but perishables will suffer massive inflation first. That's because folks will abandon debt service in order to survive (already happening). The inflection point, the scale in the Weibull distribution if you will, will be marked by a loud crashing sound that accompanies collective loss of faith in the currency.
Kito, America need to keep it's warmachine going and for that they need money. Crippy notes will be used no matter how much.
The deflation would be a worse choice than the inflation one.
SD, the choices will run out eventually.
The Deus ex machina is the Biggest printing machina you ever saw!CRB index printing new annual lows
Where is the inflation?
I'll tell you where it is.
It is in retail stocks like JWN, SBUX, WFM, HD, WMT, etc.
Would you just shut up already? And stop green arrowing yourself, douche.
Robojackoff,
If you could convert your enormous collection of downward facing red arrows to silver dollars, you truly would be rich!
We are not talking about inflation. We are talking about hyperinflation. They are two different things. Hyperinflation is not "really bad inflation". Instead, hyperinflation is a devastating loss of confidence in the currency. The current lack of high inflation is irrelevant, and you continually pointing it out is annoying.
That is why we all need to start using a better term than "hyperinflation" because it leads the uneducated to think "hyperinflation" means $5,000 gallon of gasoline or $2,500 loaf of bread, when it actually means end of an era, new paradigm, etc. and all the pain that goes with that.
It means both.
BTW, I know a place where you can get a really good, $2,500 loaf of bread...
There isn't enough currency in the system to create hyperinflation. You can't ask for a wheelbarrow full of fiatscos for a loaf of bread if nobody has any fiatscos. As soon as the ATMs are emptied and the EBTs are not topped up, nobody has any "money".
Ben is not printing currency, he is transferring 'credits' - from us to them. As each of the debts is dishonoured, credits disappear.
Hyperinflation occured in Weimar because that is how debts were paid in those days - with currency. Now it is all electronic fairy stories in the major economies.
Complete fallacy, i-dog. Currency doesn't have to be physical paper to be spent. The thing that is forestalling the onset of hyperinflation is that the digi-fiat "placed" on the balance sheets ("bs") of the banks is not allowed to flow into the mainstream.
As long as the illusion of money - whether a digital representation in one's account or actual paper fiat - is available, it can circulate.
You completely missed the point. People have no savings to spend and the 'currency' on bank balance sheets is not being lent and therefore not circulating through the economy to cause hyperinflation. This is exactly how the banks are drainging liquidity from the economy while the Bernank is allegedly "printing".
It's an almost exact repeat of how they created the Great Depression (in which there was also no hyperinflation).
Voluntary abandonment or die. Who will die that is the question.
The Deus ex machinawill be war and the subsequent suspension of debt and the overturning of all the socialist paradigms in favor of making war machinery. Pick an enemy, it's inevitable.
The answer is very simple. The boomer generation in power, perhaps the greediest generation of people in the last few hundred years, has decided to try and kick the can far enough to the point they are all dead when the can is no longer able to move. They will leave the younger generation with a world set on fire and a few despotic dictators ruling all, most likely the children of the wealthiest who never had to work for anything. From 2008 to now has been nothing but a giant cash grab by the wealthiest in the hopes that wealth can last 20 or so years in some yet to be determined region of the world, at least yet to be determined by the working class. The elite know the word is over, but who wants t live during Armageddon. The generation that destroyed the order of leaving the world as a better place after death has doomed those under 40 to a life of unimaginable hardship. The working caucasian class knows this and that is why the birthrate and marriage rate for the true working class has declined massively. The governen subsidised class has not learned this lesson and has been popping out welfare mouths at an exponential growth rate. Soon 5% of the population will need to produce enough to feed 94% of the others. The top 1% will be smewhere else.
"The boomer generation in power"
Yeah, because human nature has changed so much from generation to generation that we can blame everything on one particular generation as if they're somehow more greedy than previous or subsequent generations of apes with car keys.
Give me a f'ing break...
3 and 4 divorces....2 and 3 homes.....plus a cabin.....who knows how many bankruptcies....went to sleep after Kennedy and King.....maximum overdrive.....collecting social security and paychecks.....lmao....bankruptcy kind of like reverse welfare.....so I guess the low SES thing doesn't matter as every class of citizen has their own version of welfare......
And you can thank those thoughtful "social conservatives" for the rising birth rates for the underclass and minority populations.
If we would have just let people abort their unwanted/unaffordable idiot offspring, we'd be a whole lot better off.
Really, seems like Margaret Sanger and her ilk have had basically free rein for 35 years am I missing something? http://en.wikipedia.org/wiki/Eugenics
Bueller, bueller..
Sadly it's true
this is pretty much true...the zeitgeist of this generation is suicidal
they allowed the entire culture to be hijacked by its enemies. they have made things which are categorically false into religions and orthodoxy that will destroy you even for questioning them.
there's a video of some british white woman yelling at some african on a train to go back home. That's OK, acceptable, justified, ENCOURAGED, when it might be a white immigrant to a nonwhite country. The messicans will tell you to take your gringo ass home or they'll slit your throat. They won't print gov't fliers in fking english for you.
and so the gov't jailed her for hate speech and took her kid into protective custody. At the same time some somalis there beat a white girl to a pulp, seriously injuring her, shouting kill the white slag, and they were given suspended sentences. They claimed that alcohol isn't common in their culture so they shouldn't be accountable for their actions.
This is absolute, unadulterated cultural suicide. The liberals in the UK imported cultural destruction in order to assure their own perpetual election, even if it destroyed the country completely.
The end result of this will be all-out war on a variety of levels. I hope that all the mudsharks go shake hands with the mob and proclaim their brotherhood.
Trav... the guy in the YouTube video below sounds EXACTLY like you!
http://incogman.net/12/2011/british-mother-sent-to-gulag-for-public-outb...
LOL!
Max Fischer, Civis Mundi
Edit it: So after going through several of this guys YouTube videos, I've come to the conclusion that it's YOU!
LOL
Here's a video of why we shouldn't feed Africans or the needy. LOL.
http://www.youtube.com/watch?v=OSF6kCZWIr8&feature=relmfu
2nd Edit in:
Where have we heard, "Dat be rayciss" before?
YOU!
Language is like a fingerprint, and this has yours all over it. Have I found your blog?
http://www.ramzpaul.com/2011/11/child-expelled-for-saying-newscaster.html
i guess you were never taught that lesson about the pertinence of history depending upon the reliability of the human character acting the same way. one of those reliable character traits is making the excuse that your fate is someone elses fault. of course, then, the reponse is predictable. blow me.
Make new friends, but keep the old...
The hyperinflationary depression that we will experience in the next few years will totally destroy the majority of the credit based wealth that has been created in the last few decades
if somebody gave me an ounce of gold everytime i have heard the foregoing, i would be rich...............and its the same argument with the hypernflationistas, always in the next few years...........
Always in the next few years until it is finished and your broke ass is sucking dicks with Robo for a can of creamed corn.
so a guy cant be a delfationary doomer/gloomer these days? you mean i cant stock up on essentials and fortify my walls unless it involves gold? i expected better of you tmos............
Some say the world will end in fire,
Some say in ice.
From what I've tasted of desire
I hold with those who favor fire.
But if it had to perish twice,
I think I know enough of hate
To say that for destruction ice
Is also great
And would suffice.
The deflationary doomer is completely acceptable and rational. The deflationary argument being built on Bernak changing his mind about policy when everything he says and DOES indicates he will continue to combat deflation is completely irrational. Thats the point.
"But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice." -- George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787
i have recently joined the christian zionist cult of economic history and believe that only the destruction of israel will bring the second coming of christ and 1000 years of peace and prosperity. it is written, so shall it be done. bomb, bomb, bomb, bomb, bomb, iran-bomb, bomb, bomb, bomb, bomb, iran! god, as economist, is great!
deus may not deign to relieve us from our mammon worshipping psychopathic terrorist butthole central banksters without suitable humility and supplication, but i assure you that there is brigade after brigade of skittle shitting unicorns ready to take to the sky to sprinkle pixie dust and other baffling loads of bullshit on the sheople.....
occupy the white house
"If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by...[the government] and not to be delegated to individuals or corporations." -- President Andrew Jackson, Vetoed Bank Bill of 1836
A lot of honest observers (thanks ZH & Commenters) have been saying for a long time that there is no way to keep the status quo from collapsing. A lot of disingenuous observers have been saying the opposite, but privately saying the same thing. Do the Eurocrats actually believe that there is any real chance of salvaging the Eurozone by getting members to cede their sovereignty in budgetary matters? Will that make it all better, beyond giving the banksters their Christmas and New Year's bonus checks? The global economy is doomed to collapse. This has been years in the making, and there is no alka-seltzer fix for this heartburn.
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." -- James Madison
Gold is cheaper than dollars. Dollars cost you your soul. Ask Bernanke.
EU has done pretty well at the primary goal of peace.
Living standards have gone up pretty significantly for every European country over the last 50 years - EU ones included.
Yep, all "borrowed prosperity"
I could look pretty prosperous too, if I went to out and used my credit card to buy a new big-screen TV, Italian leather sofa...hell why not a Ferrari, too?
oops then the bill comes due...
I agree it sure has.. Hey did you hear the US is going to present a bill Friday for 65 years of protection services, ala Vinny, we will be collecting that bill in gold. All your gold belong to us, pay up eurobitchez..
"Zorak, write this down: no.""This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." -- Charles A. Lindbergh, Sr. , 1913
Krugman and Roubini should read that quote by Mises.
libertarian86.blogspot.com
Got to wonder which collateral call is going to bring the whole thing down at this point.
Things are getting pretty scary right now. I've got plenty of protection, but even I am kind of scared of shit like this.
Most intelligent and informed people would be scared now. Long survival preparations. Don't forget whisky.
I'm more of a wine drinker and I've got a pretty nice wine cellar ;)
Condoms aren't going to protect you from the coming shitstorm...
"totally incompetent and clueless politicians and central bankers could solve anything."
Well, they have managed to create a legal double standard, dumb-down society, control fiat currency, control the legal system, the banking system, and destroy the futures of millions of Americans.
Competency is not the issue, greed, self-gratification, and power hungry SOB's without a shred of moral or ethical fibre is what is at hand.
We're gonna need a bigger war, very soon.
Only way to get enough assets to cover our debt is to annex mars and its moons.
more like trying to find a bailout from uranus.....
and where are you going to get the fuel to bring it all over here?
the boomer generation will live another 20years...so they are fuc.ked royally. they will be old, need medicine and healthcare and they expected it to be free. their assets will be worthless. they will have no retirement....life is going to suck. at least the young are stronger physically...wait. take that back since the young are now morbidly obese. i guess everyone is fuc.ked
economic collapse is the most effective weight loss plan. get yours today.
ben and tim are giving me a enema right now.....
Of course all nations are bankrupt/insolvent when pensions and other giveways-for-votes are considered.
ECB Lower Rates 25bp, Nixes EuroQE, Eurozone Bonds Drop
http://confoundedinterest.wordpress.com
well said ludwig and his misses...
what about sweden and high taxes....eh
well here's what the markets think of these red under the bed socialists
http://www.bloomberg.com/news/2011-12-02/swedish-bonds-safer-than-german...
my sisters bro in law moved their 20 yr ago and we all wish we had followed....
Where my confusion arises is in the end result of the great collapse. Is it feasible for the Anglo-American-European elites to both collapse and use their militaries to maintain order until a global currency is created that allows them to have roughly the same balance of power as in the past? Suppose a post-world War I scenario of collapse and revolution that occurs in a great depression. Can the West by military Diktat force a global currency that benefits the ruling elites?
good question? it would seem they have secured the oil necessary for the war to occur....or maybe the war is already in progress....it defintaley is in covert terms......
They will make their soldiers die trying.....
As one blogger stated regarding the statistics below,”I think this is where the expression 'rotten to the core' comes from. But what would you expect from Ben 'Money is no object" Bernanke?'”
“Inflation: A Parade of Zombies” |The Cultural Economist | 5.15.2011
Let’s see if I get this straight. The United States Federal Reserve tells us that the rate of inflation is too low. The “Core” CPI (which excludes food and fuel) is up only 1.3% over the last year. The BLS tells us food and fuel only make up about 20% of consumer expenditures, and it is routinely claimed they are too volatile to use as a “reliable” measure of inflation. Consequently, food and fuel are excluded from calculating the “Core” CPI.
Media zombies parrot whatever the Fed tell us. Over and over again. It gets repeated so often, it becomes fact. Even Fox News tells us there is no inflation.
Well .... what they say is true. Food and fuel are not all that important an indicator of inflation .... if you are lucky enough to be making over $100 grand a year.
The rest of us are screwed.
If there is no inflation, then can anyone please explain to us why the price of gasoline has gone up 30% in one year, and 42% over the last 5 years? Can anyone explain to us... if there is no inflation, then why has the price of food gone up 9% in one year, and 28% over the last 5 years? (Note 1) And let’s see. The price of gasoline has gone up 30% in one year, and the price of food has gone up 9% in one year. BUT... per capita personal income has declined .1% over the last year. (Note 2)
So tell us again: why isn’t eating and gasoline and staying warm important? …
http://tceconomist.blogspot.com/2011/05/inflation-parade-of-zombies.html
So we are at the end of the inflation bull market, credit expansion is necessary to pertpetuate the fiat inflation tax. Or is this a chicken and egg argument?
Real Interest Rates are Negative:
UK interest rates remain at their record low of 0.5% and QE continues in the UK with a further £275 billion being created to monetize debt and buy gilts. Eurozone interest rates are now back at record all-time lows.
• Negative real interest rates, with inflation much higher than deposit rates, make gold an important diversification for investors and savers to hedge against currency debasement and monetary risk.
• The Wall Street Journal reports today that central banks are preparing for life after the euro with countries studying printing national currencies in case the single monetary union collapses.
• The chief economist of UBS, Larry Hatheway, has warned that banks "should be asking themselves whether they would survive a collapse of the payments system, a run on deposits and widespread default on assets."
http://campaign.r20.constantcontact.com/render?llr=nid4i7n6&v=001TZa7AKG...
When this mess finally comes down yes gold will outperform anything. It´s buying power will explode when paper-imaginary-wealth implodes. I like silver too but i´ll by it after gold reavluation. Sell maybe 33% of my gold and see silver climb higher in the next deacde.
90-120 days of food and personal hygiene items. 30-60 days of fresh water and water filtration device. Guns and ammo for self-defense and food gathering and gold and silver to barter with and you will survive unless you are in or near a big urban area.
If you are in a metropolitan area, you are doomed. Think heavy automatic weapons and bunkers to protect your preparations. Sucks being us.
deleted as a duplicate
Correction:
The hyperinflationary deflationary hyperstagflationary depression/dark age/thermonuclear war that we will experience in the next few years (or days), probably tomorrow, will totally destroy the majority of the credit based wealth (and zombies will roam the earth) that has been created in the last few decades (most of it in the last 3 years).
Lock and Load.
Judgment Day.
Interesting he makes this statement now. Isn't December 9th Judgment Day for Europe?
Marx's 10 planks of communism, right on schedule
http://en.wikipedia.org/wiki/The_Communist_Manifesto
is it just slewie, or does deus look pretty papal here?
in the north american version, we'd prob get dick nixon! (L0Laleujah)
the age-old "deus ex" ending (well-portrayed by ms morissette) reminded viewers that their own devices would never suffice to solve the problems apparently caused by complexitity + the 7 Deadly Sins
i think as long as the deus has a good wit and repartee, the doom is easier to bear
"THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION."
BS! All they need is to allow ECB to print money. Consider this done.T
omorrow Market going to be up 300 points. Watch and learn.
Nobody sellling anything. BTFD!