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Either You Believe In Math; Or You Believe In Magic

Tyler Durden's picture


Analogizing from the sleight-of-hand tricks of magicians to the confidence-based efforts of the world's central bankers, Brent Johnson of Santiago Capital provides at once an entertaining and also devastatingly simple explanation of what these guys are up to. As he notes, in deference to The Usual Suspects, "the greatest trick central bankers ever pulled was convincing the world that they work for the public and not for the banks." Comprehending the financial repression and inflation that is occurring - and knowing where to look to see the truth (and how to protect your assets) - is critical in not becoming the shill in Bernanke, Draghi et al.'s global game of Three-Card-Monte.


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Mon, 09/17/2012 - 21:07 | 2805731 kornholio
kornholio's picture


Mon, 09/17/2012 - 21:21 | 2805758 vast-dom
vast-dom's picture

math is magick and magick is math. it's when the math in your bank account is zero and you can't afford your!

Mon, 09/17/2012 - 21:58 | 2805847's picture

So I'm sitting there thinking, "There's no way he's going to say Denmark and elephant." Wild.

Mon, 09/17/2012 - 22:45 | 2805922 Jackfish
Jackfish's picture

But if you had eaten Japanese food for dinner you might have thought black eel......

Mon, 09/17/2012 - 23:33 | 2805999 bigwavedave
bigwavedave's picture

I got Ostriches in the Dominican Republic. Does that make me a contrarian?

Tue, 09/18/2012 - 01:18 | 2806127 SafelyGraze
SafelyGraze's picture



-Paris Hilton

Mon, 09/17/2012 - 23:55 | 2806046 Ginsengbull
Ginsengbull's picture

Not very different from our electoral process.

You can have anything to drink that you want.

We offer coke and pepsi.

"But I don't want carbonated sugar water with coal tar to darken it. May I have lemonade?"

No, perhaps you weren't listening... Anything you want... coke or pepsi?

Tue, 09/18/2012 - 04:55 | 2806240 machineh
machineh's picture

'... critical in not becoming the shill in Bernanke's global game ...'

At least a shill gets compensated for being in cahoots with the dealer. Whereas the mark simply gets taken.

As Robert Plant used to sing, 'Shill mark, shill mark, shill mark ...'

*launches killer air guitar solo*

Tue, 09/18/2012 - 07:05 | 2806317 lewy14
lewy14's picture

I knew of course he would say Denmark and Elephant; it took me a minute afterwards to figure out why...

Take a number 1 to 10 and multiply by 9 -> You know it is a multiple of nine

Add the digits together -> All multiples of 9 have digits which add to 9. So we know the number is nine.

Hence we know the letter is "D". Probably something like 90+ percent of people will now choose "Denmark", and then given E think of Elephant, and most know elephants are grey. There was probably some data available which indicated "D" was the best bet for this sequence, hence we subtracted 5 from the digit total.

Of course there might be a wiseguy thinking of Beige Aardvarks from Dagestan.

I aspire to be that guy.

Tue, 09/18/2012 - 10:27 | 2806865's picture

Great job. Thanks!

Tue, 09/18/2012 - 11:12 | 2807019 socalbeach
socalbeach's picture

In case anyone is wondering why,

"All multiples of 9 have digits which add to 9",

9*X = 10*(X-1) + 1*(10-X) if X between 1 and 9.

Adding the digits together gives (X-1) + (10-X) = 9.

Tue, 09/18/2012 - 00:31 | 2806090 Doña K
Doña K's picture


Here is magic math puzzle:

Three friends go to a restaurant. The bill is $30. They hand the $30 to the waiter. The waiter goes to the cashier who is the boss. The boss sees the three friends and he tells the waiter to only charge them $25.

The waiter (he used to be a banker) takes the $5 dollars to give back but keeps $2 and gives them back $3.

That means that they paid $9 dolars each.

9X3=27 plus $2 that the waiter kept = 29 what happened to the other dollar?

Okay maybe zerohedgers can figure out the answer easily. But think about the masses! That's what the bankers count on!  


Tue, 09/18/2012 - 01:13 | 2806121 SafelyGraze
SafelyGraze's picture

"They hand the $30 to the waiter.  .. 9X3=27 plus $2 that the waiter kept = 29 what happened to the other dollar?"

this seems confusing at first, because you think that 9x3+2 turns out to be less than the 30 they paid.

that's because you assume that 9x3=27

but since you know in advance that 9x3+2=30, that means 9x3=28.

problem solved.

Tue, 09/18/2012 - 01:31 | 2806138 spekulatn
spekulatn's picture

Now that's bullish.

Well done SafelyGraze.

Tue, 09/18/2012 - 06:25 | 2806287 jumblies
jumblies's picture

>that's because you assume that 9x3=27

No, not an assumption. The lynchpin of the deception is the line "That means that they paid $9 dolars each". They didn't, the storyteller is lying and because he's acting as an authority figure you believe it without questioning. The 3 friends actually paid $27.33 each (ok, there's a penny missing).


Tue, 09/18/2012 - 08:00 | 2806416 kill switch
kill switch's picture

You people are all full of shit,,,,John Corzine  has the remaining dollar...

Tue, 09/18/2012 - 08:02 | 2806419 Multi
Multi's picture

Wrong. Of course they paid $27. They paid $30 and received $3 back which means they paid $27.


The deception is in the assertion: "9X3=27 plus $2 that the waiter kept = 29 what happened to the other dollar?"

The right thing to say is: they paid $27 plus $3 dollars that they recived back = $30. And from those $27, $25 went to the owner and $2 to the cashier.

Tue, 09/18/2012 - 08:16 | 2806454 SafelyGraze
SafelyGraze's picture


the right thing to say is: they paid $30 plus the $3 that the recived back = $33. And from those $33, $30 went to pay the bill, $2 went to the cashier, and $1 paid for the missing dollar. so that makes $33. check.

plus the $3 they got back, bringing the total to $36. so it all works out.

people struggle reaching this solution because they haven't taken accounting classes.

Tue, 09/18/2012 - 08:24 | 2806472 Multi
Multi's picture

I got it now.  XD

Tue, 09/18/2012 - 09:42 | 2806707 Doña K
Doña K's picture

They did pay $9 each = 27.  The trick is that the 27 contains the $2 that the waiter kept. Therefore, you can not add the $2 to the 27 again. it is a slight of hand.

So then, $25 went to the register and $2 to the waiter. Trying to sum up to $30 is the smoke and mirrors.


Tue, 09/18/2012 - 09:11 | 2806612 Clashfan
Clashfan's picture

No, Safely. They did not pay 33. they paid 30. Multi's answer is right.

Tue, 09/18/2012 - 09:25 | 2806653 downrodeo
downrodeo's picture

abra-cadabra al-ge-bra

Tue, 09/18/2012 - 17:09 | 2808519 SafelyGraze
SafelyGraze's picture

it works out to 36, not 33.

to see it, you have to use two-column ledger sheets.

Tue, 09/18/2012 - 09:13 | 2806623 Clashfan
Clashfan's picture

Jumblies, what is 27.33 x3? I don't think so, sorry.

Tue, 09/18/2012 - 05:06 | 2806244 GoldbugVariation
GoldbugVariation's picture

Marked to market they had the same $30 that they originally invested.

The money handled by the waiter is in an off-balance sheet vehicle, that's why you don't see it.

Tue, 09/18/2012 - 09:29 | 2806670 gdgenius
gdgenius's picture

They paid $25 for the meal and unwittingly paid $2 to the waiter. 25+2 = 27. Divided by 3 - they paid $9 dollars each.

Tue, 09/18/2012 - 09:44 | 2806710 Doña K
Doña K's picture

Right. Kudos

Tue, 09/18/2012 - 17:14 | 2808528 SafelyGraze
SafelyGraze's picture

25 *minus* 2, not *plus* 2.

so they paid 23 dollars.

23*3 = 69 total dollars, less the 36 (for the restaurant, the waiter, the 3 dollars returned to them, and the missing dollar). 69 minus 36 leaves 33.

so again, it all checks out.

Mon, 09/17/2012 - 21:28 | 2805793 CPL
CPL's picture

Unfortunately yes, it is Bullish.

Mon, 09/17/2012 - 21:50 | 2805829 Michael
Michael's picture

Jessee Ventrua is on Piers Morgan CNN right now and is tearing up the place.

No, JV is blowing up the CNN station.

No, This will be Pires Morgan's greatest show and will break, 400k viewers and probably set a new viewer record for him.


Mon, 09/17/2012 - 22:09 | 2805863 Michael
Michael's picture

The Federal Reserve Corporation is owned by private share holders.

The debt the Federal Reserve Corporation holds belongs to the Share Holders of the Federal Reserve Corporation, Not the American people at large.

The defaulted debt coming the Federal Reserve Share holders have is their problem.

I don't think the Federal Reserve Corporation commands any Standing Armies I know of.

What say you?



Mon, 09/17/2012 - 22:34 | 2805905 Ginsengbull
Ginsengbull's picture

Give me control of a nations money supply, and I care not who makes the laws.

Mon, 09/17/2012 - 22:36 | 2805914 prains
prains's picture

-Paris Hilton

Mon, 09/17/2012 - 23:12 | 2805960 Michael
Michael's picture

We'll see how much the Rothschild's care this time around the block.

There is an established pattern to their Freud.

Mon, 09/17/2012 - 23:37 | 2806008 A Nanny Moose
A Nanny Moose's picture

Golden Rule: He who makes the gold, makes the rules.

Tue, 09/18/2012 - 00:24 | 2806083 Michael
Michael's picture

Nothing a good 30,000 pound bunker buster bomb couldn't take care of.

Tue, 09/18/2012 - 01:40 | 2806145 Amagnonx
Amagnonx's picture

The Federal Reserve also owns gold certificates pledged by the treasury as collateral - valued at some $42 or so (or last I heard it was).


The treasury doesn't have that gold, what happens when gold goes to the moon and the Fed calls it in to cover?  Like deja vu all over again.

Tue, 09/18/2012 - 07:47 | 2806391 crusty curmudgeon
crusty curmudgeon's picture

Haven't I seen this comment before?

“There's a fine line between being on the leading edge and being in the lunatic fringe.” Frank Armstrong

Mon, 09/17/2012 - 22:11 | 2805868 fuu
Mon, 09/17/2012 - 22:24 | 2805884 Michael
Michael's picture

It certainly is magical. I never thought I would see it happen on Jewtube MSM TV. All out 9/11 talk and all more.

Buy stock in Piers Morgan Show if he keeps this up. 

Mon, 09/17/2012 - 23:32 | 2805997 tip e. canoe
tip e. canoe's picture

love to see Piers (in the Mean Gene role) & Jesse moderate a prez debate.   would suit the Wrestlemania theme of this sillycycle perfectly, no?   (yet at the same time contain more seriousness in 90 minutes than the last 12 years of anglo-american pravda)

Mon, 09/17/2012 - 23:40 | 2806013 A Nanny Moose
A Nanny Moose's picture

Wrestlemania theme of this sillycycle perfectly, no?


Since when does tag team wrestling involve rectal penetration....of taxpayers?

Tue, 09/18/2012 - 00:52 | 2806086 Michael
Michael's picture

Always, from the D&R tag team.

Mon, 09/17/2012 - 22:57 | 2805940 Freddie
Freddie's picture

Lloyd Blankfein aka the vampire squid is Kaiser Soze!

Mon, 09/17/2012 - 21:09 | 2805735 Mr. Fix
Mr. Fix's picture

End the Fed!!!

Mon, 09/17/2012 - 21:31 | 2805801 CH1
CH1's picture

Or just escape it.

Mon, 09/17/2012 - 22:30 | 2805897 Muppet of the U...
Muppet of the Universe's picture

I really want to escape it.  & I have no idea where else to post this, lol... so here's goes 1 pathetic plea.

Mon, 09/17/2012 - 23:35 | 2806005 tip e. canoe
tip e. canoe's picture

suggestion to ben: stop trading time derivatives of flowers and start growing actual flowers.    gardeners are a grumpy sort, but much more grounded in the here and now in my experience.

Tue, 09/18/2012 - 03:12 | 2806201 FoeHammer
FoeHammer's picture

Christ. It isn't about money. It isn't about power. It isn't about prepping. It isn't about survival.

Even if you take action on 30,000 variables, there are still ? variables left. Any one of those ? unaccounted for variables can fuck your shit up.


So what do you do? I don't know. You already seemed to be unplugged. Maybe you can do anything now. Maybe I'M insane. Maybe this helps. Good luck man.

Tue, 09/18/2012 - 03:44 | 2806222 The Navigator
The Navigator's picture

Doom overload.

Step back, take a breath, re-assess.

Take a week off from info sites, then see what matters.

If you care, you'll still be back at truth info webs.

The red pill can cause enormous pains. 

Tue, 09/18/2012 - 08:14 | 2806446 CH1
CH1's picture

Wise words, Navigator.

Thank you.

Tue, 09/18/2012 - 09:02 | 2806585 exi1ed0ne
exi1ed0ne's picture

"It's not the plan, it's the planning."  -Patton

You see, planning is a creative process.  You are trying to anticipate the future and come up with contingencies.  We all know that you can't know the future, but this is not a futile exercise because you are thinking in an open way and playing with ideas of what might happen.  When the future becomes now and nothing manifests itself like you planed, by the virtue of having spent time in the creative process you are far more adaptable.  Not to mention your subconscious is always mulling over the ideas from your creative sessions.

You have a years worth of prep to hunker in place, but your hunker site is in the hot zone?  By prepping you already have at least some mobile resources, have a mental list of the most important, and can boogie WAY more efficiently than someone who has not thought about things at all wondering what to take.  You just abandoned 90% of your stash, but you have 10% more than others in the same situation and more importantly spare synapses to plan the next step.

Probably a dumb example, but you get my point.  The most important prep is YOU and your ability to adapt your plans to the current situation.  Beans, bullets and babes are only resources.

Mon, 09/17/2012 - 21:13 | 2805742 A Lunatic
A Lunatic's picture

Vote for Pedro.

Mon, 09/17/2012 - 21:13 | 2805744 RobinHood73
RobinHood73's picture

The Fed is more powerful than any army, can unleash more oppression and enslave the masses far more effectively than any modern warfare. And he gets labelled a hero in the media!

Mon, 09/17/2012 - 22:51 | 2805929 ArrestBobRubin
ArrestBobRubin's picture

Does that not follow? Whose "media" is it anyway?

You'll all love this, bookmark it and send it to friends. You thought it was bad, but you probably didn't know it was THIS bad.

Television? Or is it Talmudvision?

The Jew Media Octopus:

(TV Broadcast/Film Ownership and Management)

Mon, 09/17/2012 - 23:42 | 2806020 Ginsengbull
Ginsengbull's picture

Jews do a great job with media.

They have had the best selling book of all time for over 5000 years.

They also do a great job with banking, but make no mistake about it.

The illuminatist bankers leaders care not whether one is Jew, Gentile, Arab, Hindu, or Buddhist.

Black, yellow, brown, white, or red.

They only care about results. More money, more control.

It has nothing to do with being Jewish, but more to do with being human.

It is in our nature to try and oppress others, and eventually our own kind.

Mon, 09/17/2012 - 23:59 | 2806050 ArrestBobRubin
ArrestBobRubin's picture

Don't try to equate the sickness you describe as "our nature" with "being human".

One has nothing to do with the other, you're simply projecting.

Tue, 09/18/2012 - 00:03 | 2806057 Ginsengbull
Ginsengbull's picture

So, what about humanity do you not understand?

Tue, 09/18/2012 - 00:12 | 2806069 Ginsengbull
Ginsengbull's picture

Can you give me one example of a time in history when the strong did not oppress the weak?

Tue, 09/18/2012 - 00:59 | 2806097 ArrestBobRubin
ArrestBobRubin's picture

So what is it about humanity you think you understand? In fact all you only understand is what a false humanity looks like, has produced, and how it has misbehaved in a relatively brief window of history.

This is hardly the same as knowing about Humanity. Like many, you are easily fooled by the appearances foisted upon you by your controllers.  Is what you think of as "humanity" the real thing, or some counterfeit that nullifies the real article in the deceived?

You suffer from an Aristotilian/Malthuisan outlook. The funny part is that you don't know it, and you think you're prepared to make an accurate read of the world around you. You are not. Your conclusions will invariably fall within set limits that were predefined for you.

This is to your detriment in understanding much of anything, but most of all about the true nature of Humans.

Tue, 09/18/2012 - 01:21 | 2806133 Ginsengbull
Ginsengbull's picture

Blah, blah, blah...

Judging from your nom de plume, and your posts, you are a very negative person, and you continually try to point out weaknesses that you imagine in others, as a way of drawing attention away from your own failures. I've never seen so much typing, with so little substance.

Please, for the benefit of all who read these presence, now and in the future, try to say something that actualy helps. If you can't think of anything real to say, just copy and paste from my posts.

Here's a good one:

Big people talk about ideas

Regular people talk about things

Small people talk about other people

Tue, 09/18/2012 - 00:00 | 2806051 Ginsengbull
Ginsengbull's picture

As a Roman Catholic, I consider myself to be a Jew, with some additional enlightenment.

Not to say that they don't have additional enlightenment of their own.

Tue, 09/18/2012 - 01:05 | 2806096 ArrestBobRubin
ArrestBobRubin's picture

As the Pope wears a yarmulke, you are one. There is no "further enlightment" there, just a continuation of an ancient evil in a new wrapper. My deepest sympathies to both of you.

What accomodation does light have with dark? There is none.

Tue, 09/18/2012 - 01:56 | 2806150 Michael
Michael's picture

Good link. I have not seen that but knew anyway. The can of worms is being opened because of the internet.

I love many Jews and much of their work, and have Jewish relatives.

The problem I see overall with the Jewish community, especially because of tradition is, It's just a character flaw and they should have diversified their skill set. That's all.



Tue, 09/18/2012 - 03:15 | 2806205 AnAnonymous
AnAnonymous's picture

The illuminatist bankers leaders care not whether one is Jew, Gentile, Arab, Hindu, or Buddhist.

Black, yellow, brown, white, or red.

They only care about results. More money, more control.

It has nothing to do with being Jewish, but more to do with being human.

It is in our nature to try and oppress others, and eventually our own kind.

Booom. Once again, the old 'american' trick: 'americanism' is human nature.

To jump the shark, as usual with 'americans', one has to submit to a breathtaking statement.

The illuminatist bankers leaders care not whether one is Jew, Gentile, Arab, Hindu, or Buddhist.

Black, yellow, brown, white, or red.

The 'american' banking world, that is the most dominant one, cares a lot about that. For it is composed with 'Americans'

At this point it is quite useless to claim that the 'american' banking world treats everyone equally or indiscriminatively, be it for membership to the banking world or recipients to their actions.

The way they are dealing with this crisis has little to share in terms of cruelty with the same they dealt with past crisis (minor in scale compared to nowadays).

The difference? The targets of those policies.

Tue, 09/18/2012 - 08:50 | 2806544 Obadiah
Obadiah's picture

to Ginsengbull

Watch out for those who "Claim" to be from our brother Juduh, but who ARE NOT.  These are the Kenites, the offspring of satan and they are the bad figs.

Mon, 09/17/2012 - 23:24 | 2805982 Michael
Michael's picture

The Federal Reserve Corporation is owned by private share holders.

The debt the Federal Reserve Corporation holds belongs to the Share Holders of the Federal Reserve Corporation, Not the American people at large.

The defaulted debt coming the Federal Reserve Share holders have is their problem.

I don't think the Federal Reserve Corporation commands any Standing Armies I know of.

What say you?

Mon, 09/17/2012 - 23:32 | 2805996 cynicalskeptic
cynicalskeptic's picture

   Just TRY and get rid of the Fed - or try to get it to take any losses and you'll be lunch faster than you thought possible.


Sadly, in the long term, we're all Soylent Green........  it's coming faster than you think.

Tue, 09/18/2012 - 02:13 | 2806152 Michael
Michael's picture

We have more guns and people who know how to use them on the streets of America then they do. Have you seen the record gun sales?

Tue, 09/18/2012 - 03:00 | 2806188 MeelionDollerBogus
MeelionDollerBogus's picture

You're not counting the guns that can only be lifted by a vehicle or a drone and you're not counting the non-firearm weapons like nerve-gas.

You are hopelessly outgunned.

Tue, 09/18/2012 - 04:28 | 2806232 Michael
Michael's picture

That's only if federal government employee paychecks are worth killing fellow Americans for. I doubt it.

Tue, 09/18/2012 - 04:49 | 2806239 Urban Redneck
Urban Redneck's picture

Because both the Russians and the Americans were so "successful" at subduing the goat-fuckers with those very weapons, 20 years and unimaginable heavy weapons and WMD and they both failed to subdue the masses...

Tue, 09/18/2012 - 08:05 | 2806424 petolo
petolo's picture

Homo homini lupus.

Tue, 09/18/2012 - 02:59 | 2806187 MeelionDollerBogus
MeelionDollerBogus's picture

US military is paid using what? Federal Reserve notes & electronic tokens derived thereof in various banks beholden to the Federal Reserve.

Looks like a standing army to me.

Mon, 09/17/2012 - 21:13 | 2805745 Dr. Engali
Dr. Engali's picture

We exist for the good of all mankind.

Mon, 09/17/2012 - 22:16 | 2805873 SGS
SGS's picture

I exist for the good of MYkind

and agents of the ponzi continuum are not MYkind.

Mon, 09/17/2012 - 21:14 | 2805747 buzzsaw99
buzzsaw99's picture


Mon, 09/17/2012 - 21:17 | 2805757 RobinHood73
RobinHood73's picture

The Fed is the Hedge Fund for Primary Dealers to repo all their shit to.  The Hedge Fund levers up until there is an accident. The ultimate "martingale" bet. No wonder vol distributions no longer "appear" normal

Mon, 09/17/2012 - 21:23 | 2805773 gwar5
gwar5's picture



"Talking about their dual mandate is all nice fuzzy talk from the Fed, and while it's nice if there is low unemployment and inflation, if you really want to understand what the Fed does then you must understand that the Fed is 'Of the banks, by the banks, and for the banks,' and once you grasp that, then you'll have no problem understanding that the only real mandate of the Fed is to help the banks." 

 -- Jim Rickards, 2010. 


Mon, 09/17/2012 - 21:23 | 2805774 wretch
wretch's picture

Sleight of hand.

Mon, 09/17/2012 - 21:24 | 2805778 d2themfi
d2themfi's picture

How do you shoot the devil in the back? What if you miss?

Mon, 09/17/2012 - 21:28 | 2805794 Pairadimes
Pairadimes's picture

If you left that to chance, you're doing it wrong.

Mon, 09/17/2012 - 22:30 | 2805900 Ginsengbull
Ginsengbull's picture

But the sucker just laughed and said "Put it away. I ate her all up, now what you gonna say?"

Tue, 09/18/2012 - 01:30 | 2806137 Amagnonx
Amagnonx's picture

You go heavy with the silver shot - and you make sure you use both barrels and have friends along, all firing at the same time.

Mon, 09/17/2012 - 21:28 | 2805790 lolmao500
lolmao500's picture

Magic is much more believable. Another plus : there's no maths involved.

Mon, 09/17/2012 - 21:30 | 2805796 Robslob
Robslob's picture

You don't shoot him at all just buy gold and watch him disappear into thin air....

Mon, 09/17/2012 - 21:35 | 2805807 caimen garou
caimen garou's picture

ok that was creepy at 1:52 into this video I see my ex mother-in-law,at 6:58 I see all of satan's children and at the end I see grey elepahants in denmark! I'm going to have nightmares,thanks a lot.

Mon, 09/17/2012 - 21:38 | 2805811 Timmay
Timmay's picture

Soooo... The FED is Satanic? But we knew this.....

Mon, 09/17/2012 - 22:13 | 2805870 BlackholeDivestment
BlackholeDivestment's picture soon as I the five finger hand is pointed out, I comprehend the one who runs the joint and shout...

Mon, 09/17/2012 - 21:47 | 2805826 ArrestBobRubin
ArrestBobRubin's picture

I believe in gold and silver. All else is debt.

Mon, 09/17/2012 - 22:53 | 2805934 Ginsengbull
Ginsengbull's picture

Plumbum (lead) is better to give, than to receive.

Tue, 09/18/2012 - 00:00 | 2806052 ArrestBobRubin
ArrestBobRubin's picture

Jeez, I forgot lead and brass. Beg pardon.

Tue, 09/18/2012 - 17:15 | 2808533 SafelyGraze
SafelyGraze's picture


-Paris Hilton

Mon, 09/17/2012 - 21:55 | 2805840 Silver_K-9
Silver_K-9's picture


Mon, 09/17/2012 - 22:42 | 2805919 Jackfish
Jackfish's picture


Tue, 09/18/2012 - 00:47 | 2806103 Bernankenstein
Bernankenstein's picture

Or perhaps a black egret. Everyone looking for a black swan, and then a black egret from hell comes along. Never saw that coming.  (-:

Mon, 09/17/2012 - 21:55 | 2805842 Freewheelin Franklin
Freewheelin Franklin's picture

Statistics isn't real math.



Mon, 09/17/2012 - 21:57 | 2805844 Son of Loki
Son of Loki's picture

"By holding cash you will safely lose your money."


I like that phraseology.

Mon, 09/17/2012 - 22:19 | 2805877 EvlTheCat
EvlTheCat's picture

Excellent presentation Mr. Johnson of Santiago Capital!

Mon, 09/17/2012 - 22:20 | 2805879 Hulk
Hulk's picture

Hey Brent, you left the toilet running...

Mon, 09/17/2012 - 22:21 | 2805883 icanhasbailout
icanhasbailout's picture

I was thinking about jackals in Djbouti actually

Mon, 09/17/2012 - 22:23 | 2805888 lolmao500
lolmao500's picture

Here's a big fat black swan :

Spanish military warning to prime minister : RESIGN! YOU ARE DESTROYING THE COUNTRY!! WE WILL DEFEND THE HOMELAND!

Military coup in Spain would be quite something.

Mon, 09/17/2012 - 23:08 | 2805959 kridkrid
kridkrid's picture

Someone should do some sort of interactive map highlighting all of the potential black swans / Archduke Franz Ferdinands (touches nose) NOT IT!

The squares of the Armed Forces remember that all military personnel are required to "swear an oath to defend our homeland and keep and do save the Constitution and laws of the Republic" and repudiate "vehemently policies that are being followed because they contradict" everything vowed to "defend". - Google translate from the article that you posted.

Mon, 09/17/2012 - 23:43 | 2806021 tip e. canoe
tip e. canoe's picture

repeating the prelude to WWII in the same freaking country is a bit too over the top obvious don't ya think?   besides, there's no Papa Hemingway this go-round.   then again, maybe these fuckers are running out of storylines.   if so, cue the bluebeam...


Tue, 09/18/2012 - 06:59 | 2806310 Acet
Acet's picture

That's actually in Portugal. I'm from there and have friends and family over there.

The Government there has just passed a measure which increases Social Security contributions for all employees up by 7% of their gross salary while decreasing Social Security contributions for all employers by 4% (apparently something the Troika asked for).

EVERYBODY has turned against them, even the employers (which made their maths and came to the conclusion that taking an additional 7% away from the hands of consumers will be far worse for them than the good from those extra 4% per-employee).

Just recently there has been a huge demonstration in 40 different cities against it, one of the biggest in record.

Friends of mine which were barelly pollitical are becoming pretty active anti-establishment, making waves and going out on demonstrations. I know at least one city based professional middle class couple that has bought farmland and have been groing their orchade there for a couple of years now in preparation for whatever happens.

The funny bit is that this recent abuse has made a lot more people look at what's happening in Greece and ask themselves if it's not better that Portugal just defaults and leaves the Euro.


Mon, 09/17/2012 - 22:30 | 2805899 UTICA CLUB XX PURE

I believe "I'll have another" UTICA CLUB that is...

Mon, 09/17/2012 - 22:44 | 2805921 Böhm_Bawerk
Böhm_Bawerk's picture

Brown Jackrabbits in Djibouti.


Mon, 09/17/2012 - 22:55 | 2805935 q99x2
q99x2's picture

BTFD before the world ends.

Mon, 09/17/2012 - 23:19 | 2805970 Stuck on Zero
Stuck on Zero's picture

Message from Fed: "We will continue to hand trillions of dollars to the banksters until the economy improves or Americans catch on."


Mon, 09/17/2012 - 23:23 | 2805973 cynicalskeptic
cynicalskeptic's picture


NOBODY else put this up?


I must be getting REALLY old.


In related news:

Any long lost relatives to THIS guy out there?

Tue, 09/18/2012 - 02:54 | 2806182 MeelionDollerBogus
MeelionDollerBogus's picture

Now THAT's a true stacker. Not a word & a nice dragon's hoard.

Mon, 09/17/2012 - 23:21 | 2805976 Newsboy
Newsboy's picture

"Any technology, if sufficiently advanced, is indistinguishable from magic."

Mon, 09/17/2012 - 23:27 | 2805988 cynicalskeptic
cynicalskeptic's picture

Doesn't have to be all that advanced if you have the right audience......



given the educational level of most Americans, MOPE is working fine.... 


Mon, 09/17/2012 - 23:43 | 2806023 Hedgetard55
Hedgetard55's picture

Arthur C. Clarke.

Tue, 09/18/2012 - 01:39 | 2806143 SafelyGraze
SafelyGraze's picture


-Paris Hilton

Tue, 09/18/2012 - 06:38 | 2806293 AnAnonymous
AnAnonymous's picture

"Any technology, if sufficiently advanced, is indistinguishable from magic."

The situation is different.

'Americans' have complexified very simple observations in order to get away with.

It is not advanced technology. On the contrary. Due to physical world constraints, the very simple observations 'Americans' have been trying to conceal, are resurfacing.

'Americans' are exposed by plain and raw facts.

Time for bamboozling is over. It is no longer about claiming advancement in technology.

It is about pretending to believe what is not known to be untrue. Just because 'American' standard of life depends on adopting those lies as a creed.

Fantasy is the ultimate shelter for 'Americans' They know they are living in a world of fantasy. But they would no longer bear walking outside their shelter to confront reality.

Tue, 09/18/2012 - 13:04 | 2807522 akak
akak's picture

Make me laugh!

Fantasy is the ultimate shelter for the RAGINGLY  bigoted and hypocritical troll that is you.  You know you are living in a world of fantasy, in which you must create the absurd fiction of "US Citizenism" in order to project the faults and faililngs of your own antheap society onto others. But you consistently refuse, and are unable, to bear walking outside your shelter of blind bigotry and collectivistic hatred to confront reality.

Mon, 09/17/2012 - 23:23 | 2805980 Goldilocks
Mon, 09/17/2012 - 23:47 | 2806026 blunderdog
blunderdog's picture

With the hindsight of the sufficiently advanced society, it's always seemed strange to me that that ultra-popular magic song was the worst off that whole new world record....high fires and waterfalls are where it's at.

Mon, 09/17/2012 - 23:25 | 2805984 lolmao500
lolmao500's picture

From ZH twitter :


Mon, 09/17/2012 - 23:35 | 2806002 curly
curly's picture

Just when I think that 0hedge is no longer worth reading...

Thank you Brent.  And Tyler.

'course the real magicians (Greenspan, Rubin, Clinton, Paulson, more) make themselves disappear, after they've left the flaming bag of shit on our front door steps and have rung the doorbell, and left the lesser magicians to be standing in the yard (garden) when we open the door and stomp on it to put it out.  Except maybe Clinton, who thinks he can BS his way out of anything, and the other guy, who's not bright enough to know his shoes stink and are burning. 

And we're left with weasels who tell us that black is white, and that several billion people from another religion who are killing, burning and destroying are just angry movie critics.  Ah the life of a community organizer and political activist.  Goebbels would be proud.



Mon, 09/17/2012 - 23:46 | 2806027 tip e. canoe
tip e. canoe's picture

funny shit curly, cuz it's so true.    don't forget Fat Larry tho.

Mon, 09/17/2012 - 23:36 | 2806007 mvsjcl
mvsjcl's picture

White emu in... yes, Denmark.

Tue, 09/18/2012 - 00:19 | 2806041 lolmao500
lolmao500's picture

White House Says It's Unconstitutional To Strike Down The NDAA

Obama is a TRAITOR!!!!! But this guy is as bad :

Appeals court unblocks indefinite detention law

Tue, 09/18/2012 - 00:46 | 2806102 zebra
zebra's picture

it has nothing to do with magic or math. for middle class, it just feels like being robbed at gunpoint by central bankers, and most would surrender their wallets.

Tue, 09/18/2012 - 03:23 | 2806211 AnAnonymous
AnAnonymous's picture

'american' middle class is robbed by 'american' middle class, not by bankers.

For the 'american' middle class to endure, some of it has to be pushed under the train.

Tue, 09/18/2012 - 01:01 | 2806117 MedicalQuack
MedicalQuack's picture

Its the math and code, they use it to hide risk and anyone who has written code knows the power.  Who ever controls and writes the code controls the world so we all exist today to serve the banks as the quants write their fictitous code.  Like hearing the quant teacher stating that economists are not scientists and they do not have laws, they just guess say the quants who write the code. We are all under the Attack of the Killer Algoirthms.

Tue, 09/18/2012 - 02:44 | 2806176 MeelionDollerBogus
Tue, 09/18/2012 - 03:22 | 2806210 AnAnonymous
AnAnonymous's picture

Trusting maths or not has little to do with the current situation.

'American' economics leads to quantify and qualify the world.

Mathematics do not do that in the same extent.

For example, in mathematics (at least the ones called in the trusting maths or not statement), numeration is non ambiguous.
1 is 1 and stays so.

In 'American' economics, one is not one as one USD does not stay the same (as repeated lavishly on this site)

It breaks any strength mathematics could have at the moment.

'American' economics rely on non constant measurements to make the day.

The question is not whether you trust mathematics as mathematics are irrelevant in many properties they have but if you trust 'american' economics.

Tue, 09/18/2012 - 05:57 | 2806278 falak pema
falak pema's picture

baboonomics personified...

Tue, 09/18/2012 - 06:40 | 2806294 AnAnonymous
AnAnonymous's picture

Useless to invent new names when some already exist: what is going on is 'american' economics.

Tue, 09/18/2012 - 13:05 | 2807514 akak
akak's picture

'Chinese Citizenism hypocrisy' and 'blobbing-up' also work nicely.

Tue, 09/18/2012 - 05:37 | 2806255 falak pema
falak pema's picture

The Republican Party, especially the Tea PArty-religiously inspired wing, has decreed that its value systems do not coalesce with SCIENCE. 

So now the USA has a strong political lobby that promotes obscurantist logic which makes Krugman's babooning sound like sweet nothings ballad type music! 

My, is the intellectual race to the bottom hottening up; it is in strong correlation with the fiat bubble of first world. Heading to foggy bottom. It seems that the crazy hysterical world of current power play, totally head up the bottom hole, has two annointed meeting places for the new shootout of MIC OK corral : ME cauldron and SOuth China Sea jacuzzi.

Mindset morph and fiat inflation beanstalk the two teats of civilization regression; big time.

Tue, 09/18/2012 - 06:00 | 2806280 economicfreefall
economicfreefall's picture

Spanish bad bank loans climbed to a fresh high in July, with almost 10pc of households and companies now behind on their payments, as the country prepares to sell short term debt on the market. 

The show goes on...

Tue, 09/18/2012 - 06:44 | 2806297 TheFuture_MrGittes
TheFuture_MrGittes's picture

Good, if not exactly novel, information in the video. However, he missed the most important part of stage magic - showmanship (presentation) - that is why the trick at the end fell a little flat.

The words of a national 'Hog Calling' champion (sometimes attributed to FDR) spring to mind:


"You have to have real appeal in your voice, you must convince the swine that you have something for them."

Tue, 09/18/2012 - 06:51 | 2806305 All Out Of Bubblegum
All Out Of Bubblegum's picture

V = PY / M


"M" is always the problem because someone has expanded or contracted it at their whim for 5000 years. It's too bad no one has ever been able to solve for M via a provable, mathematical process that distributes fairly across the board so that velocity and value create a feedback loop.

What's that you say? Someone has found a method? And it's currently working in an environment running a live market with a market cap of around $120 million?

Bitcoin: Everything else isn't math.

Tue, 09/18/2012 - 07:18 | 2806327 Money 4 Nothing
Money 4 Nothing's picture

Here at the GAO, we like to refer to it as "Mathgic" around the water cooler, it works as long as you don't monitor the real numbers. 

That light at the end of the tunnel is just that, it's not a speeding freight train although I never heard the sun blow a horn before. It certainatly makes a baffon out of Authur Laffer.

Tue, 09/18/2012 - 07:48 | 2806385 honestann
honestann's picture

I don't believe in magic.
I don't believe or disbelieve in math.
Remember, statistics is a branch of math.

And remember, there are lies, damn lies, and statistics!

Math can be a great tool, and is a tool I work with often.  But there are endless ways to be misled by math, especially "other peoples' math".  It requires just as much care, honesty, attention and diligence to apply math effectively as any other conscious process.

Consider e = mc^2 == mcc.

How many seconds, minutes, hours, days, weeks, months, years or decades did it take you to realize that c (and c squared) is... meaningless?  How long did it take you realize (after learning basic math) that any constant is meaningless... except for making units correspond?  In other words, if we put e or m into a more convenient unit, the c term simply vanishes (or becomes equal to one, which has no effect, and therefore vanishes).  As someone who became a scientist in elementary school (and went on to become a real scientist), it angers me (at myself) to recall how long it took me to realize some of these things.  Even after we realize that c in e=mcc is just a constant, how many of us even bother to think deeply about the significance of e = m (energy = mass).  What the hell does that mean?  Are we to assume there is no difference between energy and mass, that mass and energy are identical, the same thing in every respect?  Then why have two words?  And if e is not absolutely identical to m in every respect, how much can we trust the result of any of our mathematics equations?  I mean, if the holy perfect process that humans call "math" tells us that energy is the same as mass, and doesn't tell us anything about "how" or "what aspects" or "what limits" or otherwise makes sense of the situation, how much can we trust math.  And when we come to realize that "time doesn't exist" (but "change" does), how do we understand any equation that contains t in it?  Hmmmm.

My point is, math is not to be trusted either... not in and of itself, anyway.  If we don't fully understand the nature and significance and limits of every input to a math process OR we don't fully understand the nature and significance and limits of each and every process in the math we perform... then we can be just as faked out as the audience by the magician.

The fact is, the only way to understand anything rigorously is to understand the processes of consciousness that we practice.  Otherwise, how can we claim to understand anything?  But how many people understand this?  Hell, most people don't even realize the so-called "mind body dichotomy" is a scam (or mistake).  They don't even realize there is simply "body" (the physical) and "consciousness" (processes of the physical).  In fact, what people call "mind" is simply "consciousness", which is simply "processes of the physical body (including brain)".  No magic.  Nothing mysterious.  But also not something many humans bother to worry about - the nature or validity of their own mental processes.  So much confusion because someone created the concept "mind" as a noun?  Yikes!

PS: My apology to scientists for simplifying the e=mcc discussion a bit to make it relatable for a wider audience.  Don't beat me up about that, okay?  At least not here in ZH.

Tue, 09/18/2012 - 08:06 | 2806427 orangegeek
orangegeek's picture

grande bold please.

Tue, 09/18/2012 - 09:12 | 2806619 stiler
stiler's picture

I had a pastor once who married my wife and I and discipled me, who was an ex-banker. He always said, "honesty is the best policy".

AN engineer uses math to build a bridge, but in many other disciplines, it's 'anything goes', including economics, which never was a hard science to begin with. But you do need a moral standard, a 'my word is my bond' to compare apples with apples. But when after doing all the correct math and physics our conclusions don't work, maybe it's because another dimension is poking through.

To say that our mind is the sum total of the physical processes of the brain is not true. This would be playing into evolutionary thought and Behaviorism and very 20th c. The mind in all its creativity cannot merely be the result of brain cells, but God feeds the thoughts of man from his 'cloud', from his limitless storehouses.

Someone ought to show Bernanke the book of Revelation, where it is written about the 4 horsemen of the Apokalypse cause he's laying the groundwork for it.


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