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Fall Of The House Of Money: Artemis Capital On How €entral Banking Took Over Capital Markets... And The World

Tyler Durden's picture


One of the long-term recurring themes both here and in other more objective media, has been the encroaching domination of the central planning regime, or monetary authorities, read central banks, in the domain of capital markets and overall broad sovereignty, to the point where there is neither technical nor fundamental analysis left, but merely the question of where is the next batch of excess liquidity going to come from. Welcome to the death throes of the fiat system. Artemis Capital has released an extended must read presentation that summarizes just how global changes in trade, currency exchange, global monetary excess liquidity in recent decades, and especially in the coming future, will increasingly determine and define risk, and more troubling, the centuries old anarchism of state sovereignty. Anarchism, because as Europe has demonstrated so very well, in the current world the only real actors are the central banks. And with each passing day they become ever more powerful players in the global capital markets arena, as confirmed by correlations that rise every higher, approaching 1.000 across all asset classes. Anyone wondering why the only fulcrum variable for the future of risk will be FX exchange rates, and why any and all wars in the future will be primarily in binary "currency" format, we urge a careful reading of the attached slideshow by Artemis Capital titled "Fall of the House Of Money: Changes in Global Trade and Currency Exchange."

None of this will come as a surprise to regular readers, but some of the concepts bear repeating.

Artemis' Chris Cole starts with the premise of "World War €urrency"

Countries are artificially devaluing their currencies to generate competitive trade advantages or to finance deficits

United States

  • Ultra-loose monetary policy (ZIRP & Quantitative Easing)
  • Massive government deficits and high debt levels
  • Unsustainable fiscal spending and entitlements


  • ZIRP and debt-GDP-ratios above 200%+
  • Japanese government intervened in foreign exchange markets for the 4th time in over a year (selling yen and buying dollars & euros)


  • Yuan is pegged to the dollar and estimated to be as much as 40% undervalued against the US dollar
  • China keeps buying dollars and “printing” Yuan to maintain this peg


  • Swiss Franc was a popular safe haven appreciating +28% against the Euro and +50% against the dollar since 2003
  • SNB devalued Franc in September pegging it at 1.20x to the Euro


  • Central bank cuts interest rates twice in the last quarter despite highest inflation in six years

At its core, the primary source of tension, volatility and margina price influence is the relationship between the developed (debtor) and emerging (Creditor) nation.

What this underlying dynamic results in is a world in which asset prices are driven not by economic fundamentals but by the "Carry Trade" - i.e. who has the most and cheapest capital/liquidity.

The liquidity generated by the debtor nations, and which drives the above Risk ___ dynamics, has had another ominous side-effect: sending all correlations to all time record highs.

Doubt the carry trade is the stock market? Don't.

Naturally, the next point of debat is an observation of the biggest transgressor of all: the United States, and its central bank, whose sole purpose for its existence, has been to slowly devalue the dollar thus creating stealth inflation, and inflating the debt which not only in America, but across the entire developed world is now at an all time high. Alas, with ZIRP in place, and negative rates impossible, the only other option is to print ever more.

Nothing new there.

Yet the question remains: can currency devaluation be the basis of economic growth? The answer: it can create the illusion of economic growth... and that's it.

Even more stark is the following chart: it shows the S&P adjusted for the dollar's value destruction: seen this way the S&P is comparable to levels seen back in 1997! But because nobody considers the fact that all stock profits are paid out in dollars, and the dollar has lost so much purchasing power ever since the great moderation, instead gauging everything in nominal values, it is obvious that the Fed's plan continues to work.

So what is the conclusion:

  1. Global currency regime will face significant changes in the ensuing decade
  2. Self-reinforcing cycle between Debtor-Developed and Emerging-Creditor nations likely to unravel – perhaps violently
  3. European crisis may tip us into a second global recession
  4. Global policy makers are out of stimulus options
  5. Dollar hegemony may be challenged in the future

And some advice from Artemis:

  1. Prepare your business for the potential of a second global recession
  2. USD is historically strong when the economy is weak – watch for reversal
  3. Evaluate portfolio returns against a global basket of currencies and commodities
  4. Diversify exposure during periods of dollar strength and deleveraging :
    1. Nations with healthy finances and commodity driven economies (e.g. Canadian Dollar, Norwegian Krone, Australian Dollar)
    2. Tangible assets like real estate and metals (but not on leverage)
    3. Alternative asset classes (e.g. volatility and managed futures)

Full presentation:



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Fri, 11/04/2011 - 15:40 | 1846350 docmac324
docmac324's picture

Which country has more guns?  I'll go with them.  Donkey Kong, on..

Fri, 11/04/2011 - 15:49 | 1846373 tmosley
tmosley's picture

I'd be more concerned with which country produces more bullets...

Fri, 11/04/2011 - 16:20 | 1846443 gangland
gangland's picture

see that's the thing everybody's looking at the wrong line, it ain't about maginot, you could and they did outflank it, it's more like the durand line, 4gw, coin military or economic, full spectrum clusterfcuk, fed shok&awe aint cutting, it either way we're fcuked. you can't fight and organic system with a synthetic monetarist inherently limited counter syste, it's fcuking the height of arrogance. socio-psychopathic jerk-ff ala bateman.

and what country?

try what n waziristan village, they have mute no hand dudes in caves making guns from scratch, 12 year olds making bullets duude. hahahahaa to eternity....

the gun markets of pakistan

no amount of raymond davises will make them stop , all their nukes are belong to them at the end of the day.


"he came up with the idea"

"what idea?"

"of heroin"

"he was laughed"

"people in this area believe in many guns and lots of sons, this is the philosophy of the Dara peoples"

Fri, 11/04/2011 - 16:21 | 1846478 MillionDollarBonus_
MillionDollarBonus_'s picture

Don't you people know our Federal Reserve's dual mandate!? Are you completely retarded!? QUOTE from the Federal Reserve's OFFICIAL site:

"The Congress established two key objectives for monetary policy--maximum employment and stable prices".

Only a MORON wouln't want stable prices and maximum employment! If the doomers had their way, the global recovery would be dead by now.

Fri, 11/04/2011 - 16:38 | 1846531 knukles
knukles's picture

I have a nephew with Tourettes of whom you remind me.  All of a sudden will blurt out some useless inappropriate shit at the most unexpected moment.

Fri, 11/04/2011 - 17:00 | 1846581 prains
prains's picture

SHIT     DORK    SCHNAUBEL    for example

Fri, 11/04/2011 - 16:41 | 1846535 Dr. Richard Head
Dr. Richard Head's picture


Inflation is pumping along at over 9% already if one uses the methods of CPI calculation of the 80's.  As well, unemployment is over 15% using the same metrics of then. 

Food stamp usage has nearly doubled since 2007.  Price swings in the equity markets are as volatile as ever.  Housing prices pumped up at ridiculous levels and are now plummeting.  Commodity prices are far from stable whether it be corn, copper, oil, gold, silver, wheat.  The volatility of these markets have been uncharacteristically UNstable.  The global recovery is but for the few and you sir are pissing me off with your nonsense.  Go back to your column writing for the NY Times or something.

Would someone please tell Tyler to bring the captchas back to keep these fucking morons out?  Who knows though?  Perhaps this guy is here just to be the village idiot to ferret out sound arguments against his/her horseshit.  I couldn’t imagine anyone would believe a word of this distorted fuckers typing.   

Fri, 11/04/2011 - 16:48 | 1846552 gangland
gangland's picture

46 mill food stamps (but i have i swear seen families getting into an escalade, and you know what i say fcuk loyd and jaymee ), plus 60 million unemployed basically.. fuck the miiic



my thing is PATIENCE i swear i knoiw it suks but that is what is takes if ur alive in this time fuking patience thge trend is clear

Fri, 11/04/2011 - 16:52 | 1846561 gangland
gangland's picture

is this satire?

A New York contractor working on a Brooklyn affordable housing project hired goons to pour acid and beat workers who blew the whistle on a kickback scheme, where a city official was indicted court papers show.


fraud is pervasive thru the fuking system because the doohsbag on ht est reet is not dumb


y shuld al th arseholes in dc and lower east side get the caish?

feel me


seruisly its fuking 89 cents


Fri, 11/04/2011 - 17:13 | 1846600 doggings
doggings's picture

i think bring back the Capchas too

Fri, 11/04/2011 - 16:58 | 1846576 Dr. Richard Head
Dr. Richard Head's picture

My patience wears thin for those toeing the establishment line.  The sad part is there are many out there that still believe the establishment line or don't want to be bothered.  I have stopped talking to those around me about the dangers of this paper money game, as it went over their heads.  Fuck em. 

Sun, 11/06/2011 - 13:51 | 1850698 Smiddywesson
Smiddywesson's picture

Yes, now you've got it

Fri, 11/04/2011 - 17:05 | 1846589 css1971
css1971's picture

Oh good lord. MDB's funny. Should be on stage.


Fri, 11/04/2011 - 16:45 | 1846544 masterinchancery
masterinchancery's picture

This was satire, right?

Fri, 11/04/2011 - 17:28 | 1846627 mjk0259
mjk0259's picture

You suck, stop posting.

Fri, 11/04/2011 - 18:22 | 1846799 Crab Cake
Crab Cake's picture

Fuck the Fed, its "mandate", and Congress too.

It is time for a national reset. It is time for a constitutional convention, jubilee, and a monetary system based on real money that is by and for the people.

Our forefathers, and prescient US leaders throughout our history warned of the folly that has befallen us. We did not listen, and did not follow their guidance, but all is not lost.

We must reclaim our representation and our republic. We must stand, right now, and say no more. We have the RIGHT as a people to fire our government, and enact one that is by and for the people. If there are those who would stand in the way of this right of self determination peaceably demanded then it is also the Peoples' right to use force.

I will repeat. We have the right to demand self determination, and a truly representative government. If the vote be corrupted, and peaceable cries go unheard, it is our right as free peoples to declare war on tyrrany and tyrants be their name King George or Ben Bernanke.

The time is coming for each of us to decide... What are you willing to do, to sacrifice, to ensure the freedom of your children, your family, and your country. Choose wisely.

Fri, 11/04/2011 - 19:07 | 1846919 DeeDeeTwo
DeeDeeTwo's picture

People name-checking Weimar, Zimbabwe, Chile are retarded. It's economics reduced to school yard name calling. Self-parodists are the last to know, baby.

Fri, 11/04/2011 - 22:04 | 1847439 merizobeach
merizobeach's picture

"Fuck the Fed,/ It is time/ It is time/ by and for the people./ Our forefathers,/ We did not listen,/ We must reclaim/ We must stand,/ and say no more./ We have the RIGHT/ by and for the people./ the Peoples' right/ I will repeat./ We have the right./ vote be corrupted,/ it is our right/ tyrants be their name./ time is coming/ to sacrifice/ the freedom of your children, your family,/ and your country."


There!  Now it's like a poem or a rap song for you!  And it hasn't lost any of its self-aggrandizing hollowness.

You're freedom is gone, and you vote in support of your wars with 25% of every tax dollar.  If you want a better world, stop funding your government and your wars.  If you want a better life, move to a better country.  Talk is cheap.

Fri, 11/04/2011 - 20:27 | 1847140 donsluck
donsluck's picture

Doomers don't generate doom, they simply observe it. Doom was generated by moral hazard, which becomes immoral certainty.

Sat, 11/05/2011 - 04:13 | 1848064 James
James's picture

MDB - When you first started posting you got me w/your bullshit a couple of times.

Then for awhile it was humorous watching others fall into your trap.

Now you bore me to death.

You're not funny.

You're trolling and ruin threads w/your nonsense.

Fuck Off!.

Since you won't stop on your own I'll take it upon myself to reply to your posts immediately after you post warning people of your juvenile games so threadfs don't wind up all about you.

What an ass.

Sat, 11/05/2011 - 04:52 | 1848094 AldousHuxley
AldousHuxley's picture

prices are not stable an unemployment is historically high.



Sun, 11/06/2011 - 23:39 | 1851945 Chuck Walla
Chuck Walla's picture

Just a bad attempt at irony, I'm starting to get this guy. He doesn't mean it, just his idea of a goof.

Fri, 11/04/2011 - 16:16 | 1846462 SilverRhino
SilverRhino's picture

Be more concerned about the country with the most ICBMs and ABM systems.

Fri, 11/04/2011 - 16:16 | 1846466 The Peak Oil Poet
The Peak Oil Poet's picture

nah that's passe


i'd go with the country that has the most graduating computer scientists who can write the hacking code to control the drones that have the guns that fire the bullets and drop the bombs and fire the guided missiles


soon there will be millions of micro drones flying all over the world killing anyone who writes anything negati 

Fri, 11/04/2011 - 16:32 | 1846486 gangland
gangland's picture

im not a china basher, in fact in a chin-phile but they supposedly graduate 250,000 engineers every year. ok lets say that bullsiht which it is, lets cut it to they graduate 2500 engineers per year that's still dwarfs us .


id be surprised if we grad 10% of that 25000 here phd s. maybe carengeie-mellon mit and cal-tech  cornell fermi maybe hopkins and staford.


i thingk the miic is sucking up unproductive phd brain power along wiht hft financial can have a team of 6 indian super smart phds at 40k a year maing models for you ....arbitrage

john yoo did it

Fri, 11/04/2011 - 16:32 | 1846513 Sofa King
Sofa King's picture

Yea, they put out as many engineers per year as we put out buisness majors.  Guess what, the quality of their engineers is right up there with the quality of our buisness majors.  They both blow.

Fri, 11/04/2011 - 16:39 | 1846534 gangland
gangland's picture

lol tru dat

Fri, 11/04/2011 - 16:49 | 1846553 DrunkenPleb
DrunkenPleb's picture

New business major graduate doesn't know what they're doing, someone loses some money on a bad trade. New engineering graduate doesn't know what they're doing, things start falling to pieces.  Don't put your money on a country with a entire generation of sub-par engineers.

Fri, 11/04/2011 - 17:07 | 1846593 css1971
css1971's picture

The winners are the energy producers.


Sun, 11/06/2011 - 13:55 | 1850707 Smiddywesson
Smiddywesson's picture

soon there will be millions of micro drones flying all over the world killing anyone who writes anything negati

Yes, big terminator robots are passe, the future involves some poor slob peering out of a foxhole and seeing fifty coffee can sized bots swarming towards his position.

Fri, 11/04/2011 - 16:37 | 1846526 prains
prains's picture

What about the country that has the most bullet catchers?

Fri, 11/04/2011 - 15:41 | 1846351 Tsar Pointless
Tsar Pointless's picture

I love charts!

Thanks, ZH & Artemis Frog - er, Capital!

Fri, 11/04/2011 - 16:02 | 1846410 lynnybee
lynnybee's picture

i love charts, too !     especially long-term historical charts .     a chart is worth a thousand words.

Fri, 11/04/2011 - 20:33 | 1847163 UP Forester
UP Forester's picture

I like beer.  Improves the sight of pretty colored charts and graphics, and makes 'em easier to understand.

Fri, 11/04/2011 - 18:17 | 1846776 Pitchman
Pitchman's picture

Take a look at the graphics here:  Can you say counter party risk? 

See how money, created out of thin air has exploded the worlds financial sector and, it can disappear as if it never existed:

Evaporation of Wealth on a Vast Scale: How $Millions - Trillions Can Disappear


THE FED’S DEBT SLAVERY ECONOMIC MODEL is the genesis of funding for the elite money power.  Such power concentrated in the hands of so few is the most pernicious corrupting force, for which all others follow.


Check out the fascinating interview on the evolution of corruption with Ms. Fitts.  And, If you're interested in the depth of the Rabbit Hole and the psychopaths within, see the "Dillon Reed and Company: And the Aristocracy of Stock Profits" link at the bottom of: The Looting of America: Happy Labor Day


Inflection Point

Fri, 11/04/2011 - 15:45 | 1846359 GeneMarchbanks
GeneMarchbanks's picture

'Yet the question remains: can currency devaluation be the basis of economic growth? The answer: it can create the illusion of economic growth... and that's it.'

That's really all that matters now. Too bad the broken banking system can only keep the show going for those who are near source of digiflow. None of that funny money is trickling down anymore.

Deglobalization is a bitch.

Fri, 11/04/2011 - 15:56 | 1846391 topcallingtroll
topcallingtroll's picture

In a world divided into mercantilist and consumer economies devaluation is necessary to keep the system going in a single fiat currency regime. Triffin's dilemma is key here. Trade deficits can continue forever and be a source of liquidity for world growth as long as the mercantilists are willing to accept and hold gradually devaluing paper assets. And they will accept this imbalanced unfair growth as a tax for the privilege of selling to usa consumers. It is easier to take a little bit of pain every day rather than a whole lot of pain at once( by floating the currency of a trade surplus or mercantilist country)

So I believe the answer is yes.

Fri, 11/04/2011 - 16:26 | 1846499 Raging Debate
Raging Debate's picture

TopCalling Troll - The answer is YES? What was the question? Triffin's Dilema requires a mathematical solution to solve not just a guess based on 1930's economists and models. Triffins Dilema is a 5d problem. In the 5th dimension time itself loops in on itself. Having the Fed be controller and issuer of its product which is a 3d model means the Bankers are attempting to solve this problem with 3d tools. Think I'll go hunting for hungry lions with a .22.

The code structure for the solution would look something like this 4444-5555 to reflect our current operational paradigm. 6667 is the Triffin Dilema. Who or whom has built the Quantum Computer yet? Math tells me this will be ready in 2015 or prior. Don't kill one another in between and maybe the world has a prayer. If not, the initiators of this failure will also not survive according to math. I prefer 100% of us make it. Why? Because I can be honest and state clearly I knew my politicians were lying when their lips were moving, same as the Central Bankers that now own the political system. But I paid them both to lie for me, because I knew 35% of me was an asshole but I wanted someone to tell me I was Jesus. The other reality is that the pyramid shaped government of 6x6x6 in diameter and the decisions made were made in 1913 when the political systems sold itself off. The majority of us weren't even alive then.

But the Founding Father's model of 4x4x4x4 box outperformed every other model on earth.  Bankers hate running things. Bankers are priests that lie to us and we pay them! Republics must be restored to four branches of government and I would say we could and should now have five which includes the liquidity branch and mirrors our operational evolutionary reality. But the A group must now become advisors, the branding is useless and the CB model will now evolve into this paradigm one way or the other. I prefer loss mitigation and organic growth to the mass murder of all nations families. Not one family will be spared despite the delusions the super wealthy believe that they can and will build a moon or submarine base to escape reality. It is a very small world indeed now. The grid was created long before man got here, we have just evolved to mirror it using science...     

Fri, 11/04/2011 - 16:54 | 1846568 Bollixed
Bollixed's picture


Fri, 11/04/2011 - 17:27 | 1846623 catacl1sm
catacl1sm's picture

I really don't get the 6x6x6 and 4x4x4x4 stuff.

Sat, 11/05/2011 - 12:08 | 1848562 Raging Debate
Raging Debate's picture

Cata - These numbers reflect geometric shapes like a triangle, a box, a circle. They are used in system engineering to denote a model.

Man builds physical and paper pyramids and builds other tools out of these shapes to run affairs. Governments fit into a model. If you draw out a box shape you are also reflecting a four dimensional government model. Last, these geometric shapes are show our evolution.

By leadership purposely choosing a pyramid formation, a triangle it means some chose to purposely devolve the four branch model of government. Now there are also physics to analize economic models/shapes.

Fri, 11/04/2011 - 17:41 | 1846662 Henry Chinaski
Henry Chinaski's picture

By God, I will have whatever Raging Debate is drinking!  Wow! 

The best I could come up with is this...

It is an interesting coincidence that federal income taxes and the Federal Reserve were instituted together in 1913.  Deductions for interest payments encourage borrowing.  Deductible retirement plans pour unsupervised capital into the stock market.  Enormous profits are generated for Wall Street.  Federal loan guarantees transfer the underlying risk to taxpayers.  This is the baseline racket, apart from frauds like the mortgage crisis and TBTF bailouts.  The basic racket wasn't good enough, the arrogant bastards have blown it and now the system has been destabilized.

Fri, 11/04/2011 - 18:06 | 1846744 wisefool
wisefool's picture

Rot Row says scooby doo.

I absoultely love this website. But Tim Geither can not file his taxes properly, Tim Geither has permission to turn on the printing press anytime he wants, as fed govenor or SEC-TRES. The Worlds bank/IMF owes him money (in the old ways)

Timmay ran fight club. It is seriously time for children of mem memes here or TPTB will laugh at our 1040s in perpetuity.

Seriously Tyler, what kinda song do you need to refresh the avatars? Pull WB7's finger.

Sat, 11/05/2011 - 12:24 | 1848597 Raging Debate
Raging Debate's picture

Henry, don't drink that much these days. We are indeed saying the same thing. Why build a government model of a pyramid (3d) which man used for 12,000 years (at least) when man has already proven a four dimensional tool works better? The US government was a box shape model. It is a tool no different than a weapon or utility. These two government tools can be reflected in geometric numbers like 6 x 6 x 6 for a pyramid or 4 x 4 x 4 x 4 for a box. Using topography and physics, one can observe man's evolutionary progress. Man is operating between the fourth and fifth dimension and the tools/models that you see today reflect such.

Black hole generator tools? Between 4th and 5th dimension. Now lets all of us devolve and build a super pyramid! How about 999? The numbers variations reflect depth which also translate into realities but too much info for mere commentary. I have a thesis to finish before I publish more of my work to describe the interelations of math, models, tools and reflective destiny materials. I hope this was helpful. You could simply use an old saying to describe the solution set currently being run and that is 'You can't fit a triangle into a circle.'

Sun, 11/06/2011 - 14:06 | 1850731 Smiddywesson
Smiddywesson's picture




Fri, 11/04/2011 - 16:27 | 1846500 Bicycle Repairman
Bicycle Repairman's picture

"The answer: it can create the illusion of economic growth... and that's it.'"

Who can't get through the day without a great big fat rationalization?  Reality is a bitch.  Pass that bottle, m'f'er.

Fri, 11/04/2011 - 15:46 | 1846362 chump666
chump666's picture

every trader in the world should be watching the iron ore spot price...and its not looking to good

the printing presses won't be able to offset a china crash

but i would hedge on an oil price, we may have a war coming, say china and india at somepoint

Fri, 11/04/2011 - 16:28 | 1846506 Bicycle Repairman
Bicycle Repairman's picture

The printing presses can offset anything in a nominal sense.  If you take the right color pill, it's all good.  And if you take the wrong color pill, then you're just a g-d griper!!!

Fri, 11/04/2011 - 15:46 | 1846364 topcallingtroll
topcallingtroll's picture

The nice thing about this for the usa is that as long as the Remnimbi is merely a derivative of the dollar (thanks to China's fixed exchange rate) then we can continue to steal their surplus wealth (which would have otherwise accrued to chinese workers).

Gradual dollar devaluation is paradoxically the key that keeps this system stable. They produce. We consume. We pay them in a gradually depreciating currency and are the source of liquidity for world trade.

Fri, 11/04/2011 - 16:05 | 1846418 centerline
centerline's picture

As long as China can keep it's people under it's thumb. As the transfer continues and the dollar approaches zero, the inflationary pressures in China will continue to mount. This suggests there is a practical limit... a point of dimishing returns. I would wager we have crossed that point some time ago. Organic (real) GDP was the fuel that ran out. Now, only synthetic GDP (the "illusion") remains and side affects are masked only temporarily by accounting gimmicks and leverage.

Fri, 11/04/2011 - 16:17 | 1846467 topcallingtroll
topcallingtroll's picture

If we can keep the currency devaluation moderate and not get reckless or greedy I think China will put up with it for another generation, I hope!

I need twenty more years of "growth" to have a chance of becoming a one percenter!

Fri, 11/04/2011 - 16:30 | 1846511 earleflorida
earleflorida's picture

fwiw dept: china has a "5 Year [firewall]  Plan", implemented, "NOW" - time to take our medicine,...

Fri, 11/04/2011 - 16:38 | 1846530 lynnybee
lynnybee's picture

 "  I need twenty more years of "growth" to have a chance of becoming a one percenter! "   ... you don't want to be a 'one-percenter', they are evil & have no souls & would step over their own mother to attain more wealth.     rather, you really want a life filled with goodness & kindness & love .    

Fri, 11/04/2011 - 16:51 | 1846556 DaveyJones
DaveyJones's picture

besides, the 1 percent have 99 times more enemies than the common person

Fri, 11/04/2011 - 17:44 | 1846674 Henry Chinaski
Henry Chinaski's picture

don't forget truth and beauty!

Fri, 11/04/2011 - 16:25 | 1846488 earleflorida
earleflorida's picture

who's keeping who, under their thumb?


Fri, 11/04/2011 - 16:29 | 1846508 moskov
moskov's picture

Welll.China could dump all their treasury bills and that would save American people for supporting their own economy. I am all for that.

Fri, 11/04/2011 - 17:09 | 1846594 Raskolnikoff
Raskolnikoff's picture

When the first Bush did absolutely nothing to help the students who got slaughtered at Tian An Men Square we got what we deserved as an American society which is now corporate slavery to masters like those who run the Chinese Communist Party.

Fri, 11/04/2011 - 23:52 | 1847745 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The first Clinton stood by while 1 million people died in Africa from genocide. The second Clinton presidency will let 10's of millions die while she practices her new smile.

Fri, 11/04/2011 - 18:05 | 1846738 Bam_Man
Bam_Man's picture

How do you say "exorbitant privilege" in Mandarin?

Fri, 11/04/2011 - 15:48 | 1846368 dcb
dcb's picture

Interesting, because I have been wondering what these "record" s and p profits would be like if measured in gold, or if the dollar wasn't destroyed. if you compare profits in ounces of gold over years. really so how much are the record profits. that is a graph you posted I have been thinking about

Fri, 11/04/2011 - 15:49 | 1846369 bdc63
bdc63's picture

kind of a remedial real for the Zero Hedge crowd, but some of the charts are pretty interesting

Fri, 11/04/2011 - 16:01 | 1846404 topcallingtroll
topcallingtroll's picture

It is good to have basic articles every once in a while so that new people arent intimidated and can have a chance to catch up.

Fri, 11/04/2011 - 16:39 | 1846533 earleflorida
earleflorida's picture

what was relevant yesterday was old news,... what is of importance today is a confirmation of where we've been and where were going - perhaps you should enlighten tyler?

just a curious newbie?

thanks for the post, tyler 

Fri, 11/04/2011 - 15:51 | 1846374 SheepDog-One
SheepDog-One's picture

'The FED's plan continues to work'

Its obvious this guy has no idea about the 'FEDs plan' at all and whats really going on, the FED's 100 year charter is over, and theyre doing the demolition to set up the next banking system which will be 1 world bank, 1 currency, 1 government. 

Guys like this will lose everything in an instant.

Fri, 11/04/2011 - 15:52 | 1846380 sabra1
sabra1's picture

what he said! see below!

Fri, 11/04/2011 - 18:20 | 1846786 RiverRoad
RiverRoad's picture

And that one world currency BETTER BE BACKED BY GOLD.....the governments can be dealt with as the people of the world choose.

Fri, 11/04/2011 - 15:50 | 1846377 sabra1
sabra1's picture

and i thought it was just a wealth transfer thing, one world bank thing, one world currency thing! does Artemis keep their funds at JPM, so they'll know where their our money is at?

Fri, 11/04/2011 - 15:50 | 1846378 bernorange
bernorange's picture

Gold is the safe haven for central banks.  Sooner or later, the masses will rediscover tradition too.

Fri, 11/04/2011 - 15:51 | 1846381 chump666
chump666's picture

bulltrap on close...someones long pos is about to get fleeced.  it's all greece and italy

Fri, 11/04/2011 - 16:05 | 1846419 chump666
chump666's picture

and there we have it.  some bull just got stabbed in the F*cking eye bizarro last min trades.  this market is going down in Nov

Fri, 11/04/2011 - 15:51 | 1846382 Robot Traders Mom
Robot Traders Mom's picture

I will follow any hedge fund named after Frank Reynolds' girl on the side.

Fri, 11/04/2011 - 15:57 | 1846395 mfoste1
mfoste1's picture

we just banged in the wendys dumpster out back

Fri, 11/04/2011 - 16:15 | 1846460 Robot Traders Mom
Robot Traders Mom's picture

Yeah, I saw the bacon bits in her hair. She looked like a Cobb salad.

Mon, 11/07/2011 - 01:08 | 1852093 Slewburger
Slewburger's picture

I'm gonna take my bra off.... blast my nips.

Fri, 11/04/2011 - 16:08 | 1846438 Segestan
Segestan's picture

Can you tell us why in --hell-- you didn't just abort Robot?  Poor thing.

Fri, 11/04/2011 - 16:16 | 1846464 Robot Traders Mom
Robot Traders Mom's picture

Plastic clothes hangers don't work...I tried.


Fri, 11/04/2011 - 15:52 | 1846385 Bumblebee Tuna
Bumblebee Tuna's picture

"Diversify into tangible assets like real estate and metals (but not on leverage) "

Somebody forgot to give this fine investment advice to homebuyers in Vancouver

Fri, 11/04/2011 - 15:54 | 1846387 hambone
hambone's picture

Is ZH taking the day off???  Seems a mighty light posting on a day of so much going on???  And so few readers...and posters???  Strange?

Fri, 11/04/2011 - 16:21 | 1846476 Melin
Melin's picture

everyone's polishing their PMs and TD is taking a much-deserved nap I would guess

Fri, 11/04/2011 - 17:48 | 1846687 Henry Chinaski
Henry Chinaski's picture

fresh off my "nap" with the baby momma.  TGIF.

Fri, 11/04/2011 - 16:24 | 1846481 xcehn
xcehn's picture

Noticed some hangup with the site today.  Seemed to have been under strain or attack.

Sun, 11/06/2011 - 01:41 | 1849995 StychoKiller
StychoKiller's picture

I'm recovering from seven daze in the hospital with pancreatitus (lipase over 15,000 -- nominal value around 78!).  Thanks go to the inventors of Dilaudid!

Fri, 11/04/2011 - 15:56 | 1846390 s2man
s2man's picture

yep.  adjusted for inflation, S&P is down 40% since 2000.

Fri, 11/04/2011 - 15:58 | 1846394 molecool
molecool's picture

I think this chart says it all:


Fri, 11/04/2011 - 16:01 | 1846401 s2man
s2man's picture

Tax on the ignorant? I thought that was called gambling.  No, wait.  That's the tax on the mathematically challenged.

Fri, 11/04/2011 - 16:11 | 1846448 topcallingtroll
topcallingtroll's picture

Inflation or currency devaluation is definitely a tax on the ignorant and those who deliberately pursue trade surpluses in a fiat currency and simultaneously maintain a fixed exchange rate.

Fri, 11/04/2011 - 16:01 | 1846407 SheepDog-One
SheepDog-One's picture

WOW look at the Maniacal Monetizers bang dae hoe DOW up into the close! 

Fri, 11/04/2011 - 16:01 | 1846408 Long-John-Silver
Long-John-Silver's picture

Gold and Silver, It's what's real in a world of fiat.

Fri, 11/04/2011 - 16:02 | 1846409 Gloomy
Gloomy's picture




Fri, 11/04/2011 - 16:27 | 1846501 sabra1
sabra1's picture

you can keep your gold at my house, 'cause canadian real estate only goes up!

Fri, 11/04/2011 - 18:28 | 1846809 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

$1 million

I would divide it thusly:

$250,000 physical gold
$250,000 pysical silver
$250,000 internationaly diversified farm land
$100,000 mining shares
$50,000 copper
$50,000 lead
$30,000 platenum
$10,000 paladium
$40,000 guns and ammo
$20,000 food, water filter systems, international diversification documents, and barterable goods like cigarette lighters

Fri, 11/04/2011 - 22:48 | 1847584 merizobeach
merizobeach's picture

Since 'thus' is already an adjective:

"Some speakers and writers regard thusly as a pointless synonym for thus, and they avoid it or use it only for humorous effect."

Proper usage of language, especially by native speakers, really does incline readers or listeners to lend more consideration to the point being made; it's worthwhile as a writer or speaker to achieve this proficiency.  After all, aren't spelling and grammar nearly as difficult as learning basic arithmetic?

By the way, who's your paladium vendor?  Or did you mean electronic shares?  It's 'platinum', too.  That's a lot of stuff...but no oil, or vehicles?  Have you got your first '$1 million' yet?  Ah, nevermind; I know you weren't being serious.

Fri, 11/04/2011 - 16:08 | 1846429 RobotTrader
RobotTrader's picture

You know the lows are in.

When junker stocks like Genworth Financial close up 17% on 3x normal volume

and heavy duty cyclical stocks like U.S. Steel close at new highs for the move.

Fri, 11/04/2011 - 16:09 | 1846440 Gloomy
Gloomy's picture

Hey Robo-where ya been?

Fri, 11/04/2011 - 16:26 | 1846498 derek_vineyard
derek_vineyard's picture

hey robo isn't this whole europe/world debt crisis getting boring?

Fri, 11/04/2011 - 18:28 | 1846810 RiverRoad
RiverRoad's picture

Either the lows are in or the Wall Street money managers want their bonuses.

Fri, 11/04/2011 - 16:13 | 1846454 RobotTrader
RobotTrader's picture

I've been over at Wallstreet Bear Chat

Fri, 11/04/2011 - 17:39 | 1846660 reload
reload's picture

Thats funny Robo

I am sure they will enjoy your rear view, views. But do tell, what was/is your price target for that `lotto junker`?

and have a great weekend.

Fri, 11/04/2011 - 16:14 | 1846457 Top_Kill
Top_Kill's picture

Off topic, will someone with the capability run a correlation analysis on JPM/SLV. They seem to be locked together ever since SLV neared $50

Fri, 11/04/2011 - 16:18 | 1846469 undercover brother
undercover brother's picture

someone said this earlier but it's worth repeating;  given the global debt crisis the central banksters have two choices.  they can either collapse the banks and governments to save the currency or collapse the currency to save the banks and governments.   The latter is clearly in the works.

Fri, 11/04/2011 - 17:19 | 1846607 jimmyjames
jimmyjames's picture

someone said this earlier but it's worth repeating;  given the global debt crisis the central banksters have two choices.  they can either collapse the banks and governments to save the currency or collapse the currency to save the banks and governments.   The latter is clearly in the works.


How would collapsing the currencies save the banks?

Why would the elite bankers who stole all the money want to see their treasure turn out worthless?

In a floating competing currency regime-it would be very difficult to collapse a major currency-

The Euros or Japan for example would devalue/print in sync with the US or any other exporting nation-which would keep currencies more or less in balance-

The only way to really devalue is to peg and even that can be countered-

Of course they're all heading to zero in the end but on the other hand-if even one of the majors falls out of favor for whatever reason and begins to collapse-the only thing that would save it is a gold weighting and if that happens there will be a panic into the gold market by central banks because any gold weighted currency will destroy all of them without gold--


Fri, 11/04/2011 - 16:25 | 1846489 Monedas
Monedas's picture

Binky gave a short news conference the other day ? You try keepin' a straight face for more than an hour ? Shit 'n' git ! Monedas 2011 Comedy Jihad Facial Muscles Stress Test

Fri, 11/04/2011 - 16:25 | 1846493 Raskolnikoff
Raskolnikoff's picture

which is the tail and which is the dog. Is runaway government spending the dog that makes the Central Bank wag or is it the other way around? 

Fri, 11/04/2011 - 16:41 | 1846504 GoinFawr
GoinFawr's picture

Just who do those beady eyed Canuckistanians think they are, anyway?

Thank goodness Jamie Dimon has already put this guy in his place. I mean the world can't have some rogue CB and his 'anti-American' financial regulations picking favourites.

Oh wait, 'rogue' heh, 'sif. That's Mark Carney we're talking about; 13 years for GS and his nose is still gratefully rooting out polyps from Lord Bleakfiend's tea towel holder. And Harper's Great White Northern Cons have a recent 'majority' gov't with 25% of the electorate utterly duped, phew, nm.

From the above link:

"The decisions that are taken in Cannes at the end of next week will ratify a bunch of things that the FSB has been working on and set an agenda, a forward agenda, for the FSB," Carney said in an interview with Lang & O'Leary host Amanda Lang.

"What will that agenda likely be? Part of it will be, in fairness, a policeman role..."

Hahaha; oooo, the world is really scared now. WBanzai, pic of Carney in a Mountie get-up please...

Timbits Land is definitely looking ripe for the raping.

Fri, 11/04/2011 - 16:42 | 1846540 prains
prains's picture

Just don't take our women.

Fri, 11/04/2011 - 17:24 | 1846592 GoinFawr
GoinFawr's picture

heh, just you make sure Harper and his cronies keep emptying your country of its non-renewables below cost and your women will be fine.

Fri, 11/04/2011 - 23:22 | 1847670 oldman
oldman's picture


You must've had better luck than I.

After four marriages in the US I say:


a personal note that made me laugh as I read your comment.

And---If Black Monday does occur those women will be all over you----best of luck                  om

Sat, 11/05/2011 - 10:01 | 1848302 BoNeSxxx
BoNeSxxx's picture

You ain't exactly a quick study, are you old man?

If an 'investment' cost me 50% of my assets, I would be reticent to make the same investment even one more time -- let alone 4 more times!

Four marriages -- bless your soul.  I'm surprised to lived to tell the tale.

Fri, 11/04/2011 - 16:35 | 1846522 aimeesevey
aimeesevey's picture

Amazing visual presentation of the topic. I appreciate it.


Fri, 11/04/2011 - 17:09 | 1846578 Carlyle Groupie
Carlyle Groupie's picture

We haven't had an open thread in quite some time. I must warn you that this is way off topic but it's after hours and Friday night. So put on your thinking cap and gather around my fellow spacemonkey's.

A few years ago NASA sent up a bird called IBEX to explore the outer edge of our solar system because it noticed an inexplicable phenomenon from the Sun and thought it was coming from the outer Heliosphere.

You see the Earth is connected to the Sun and things within those connections are heating up.

Solar max and solar min are becoming less and less predictable so NASA wanted to get a new perspective. Enter IBEX in 2008.

What IBEX found on the outer boundary of our solar system is something that was never known before and is very frightening to those who appreciate the mysteries of space.

They discovered a huge magnetic cloud that our solar system is flying into. This magnetic cloud is: compressing the outer heliosphere, is 30 light years wide, and filled with very strong highly charged magnetic particles and gasses.

(The following is a video published by NASA about a year ago)
Fast forward to minute 2:38 to see the NASA animation of this phenomenon:

In that video our Solar system is at the center of the inner ball. The Sun is at the very center and the planets rotate around it on a plane. Earth (with it's molten metallic core), during parts of our yearly trip around the Sun comes very close to the compressing heliosphere and the magnetic cloud on the outer edge of it.

Have you noticed increased earthquakes or volcano's?

When a magnetic force comes close to a metallic ball it acts upon it. Sometimes repelling sometimes attracting depending on polarity.

One day in the not too distant future without any warning we will be pulled out of our orbit. Pulled by the magnetic cloud because we came too close to it. Flash frozen. The End. Assuming negative polarity. Positive polarity from the magnetic cloud will most likely push us too close to the Sun and we'll be cooked. The End.

So what can you do? Trade like there's no tomorrow! Develop a permanent Risk ON lifestyle! FTW and have a good weekend!


More reading from the plasma geeks at MIT:

Fri, 11/04/2011 - 17:24 | 1846617 bahaar
bahaar's picture

Interesting. What's this cloud made of?

Sat, 11/05/2011 - 18:58 | 1849463 Carlyle Groupie
Carlyle Groupie's picture

Milled soybeans and beef flavors.

Fri, 11/04/2011 - 23:35 | 1847708 oldman
oldman's picture

Hey Carlyle Groupie,

I don't know if the above is fact or fiction, but it certainly is a refreshing change of topic. Keep posting this kind of stuff, please---new material for this tired old brain is gratefully received; besides, it is a fun concept to play with------                    om

Sat, 11/05/2011 - 19:31 | 1849497 Carlyle Groupie
Carlyle Groupie's picture

Hey OM, I'm a big fan.

It's important to use critical thought. Try to visualize our orbit around the sun while visualizing the magnetic cloud movement. Understand the rhythm. The video helps.

If the Earth's orbital path comes close enough to a huge magnet what will happen to Earth's molten magnetic core?

It will at least get pulled up from the depths of Earth to the surface. Earthquakes and volcano's. We are seeing some minimal earthquake and volcanic activity now.

Follow all activity using Earthquake 3D:

There is a well known extinction pattern on Earth. It is a repetitive pattern that is expressed in years. We are very close to the end of the cycle.

This may be it. ELE's (Extinction Level Events) seldom put survivors in a position of power.

Sat, 11/05/2011 - 12:47 | 1848657 Raging Debate
Raging Debate's picture

Thanks for the post Carlyle. Good thing man is about four decades away from exploring Inner Space which is the 4th Dimension. We'll have eternity to think about that little problem we have. Then as we also now have eternity, we can have some fun exploring the 5th dimension where time loops in on itself like a big bowtie. Maybe we'll just decide that the magentic cloud shouldn't exist in the first place. That is if we decide we care about other animal and plant life in this universe or we're way past bored with it.

Sat, 11/05/2011 - 18:51 | 1849424 Carlyle Groupie
Carlyle Groupie's picture

Right on brother. The 5th dimension is where it's at. See you there.

I'm sure I'll see all the spacemonky's there. They are seekers searching for enlightenment. They know there is more out there.

What a great place this blog is.

Thanks to all for your comments.

Fri, 11/04/2011 - 17:10 | 1846596 Tyrion Lannister
Tyrion Lannister's picture

ZEROHEDGE is the greatest website on earth.  Period.

Fri, 11/04/2011 - 17:17 | 1846606 bahaar
bahaar's picture

Isn't China the transgressor rather than the US.  If China allowed RMB to float, US $ will devalue, US labor will cheaper.  Which means US will be export more, import less and there will be lot more jobs in the US.  Instead China does not allow RMB to rise or in other words drastically underprices it's labor and thus hopes to corner the market for manufactured goods.  And in an effort to spend US $ before US$ falls in value comes up with poorly planned and hastily implemented projects.

Fri, 11/04/2011 - 17:59 | 1846722 catacl1sm
catacl1sm's picture

As the Chinese are fond of saying, "Whadd you gonna do about, tell your mommy?"

Fri, 11/04/2011 - 17:19 | 1846608 MrBoompi
MrBoompi's picture

"The marriage of volatility and currency is a worrisome development because it implies risk in the stock market is not about company fundamentals but instead is a function of central banks fueling leveraged carry trades."

This has to be the understatement of the decade.



Fri, 11/04/2011 - 17:28 | 1846626 fiatbubble
fiatbubble's picture

Sure, there are going to be major setbacks in China along the way, but China has not collapsed.... the United States on the other hand, will, in time.

I advocate all Americans to consider emigrating to China within the next year considering the turmoil & civil unrest ahead.

Fri, 11/04/2011 - 17:33 | 1846643 falun bong
falun bong's picture

Just read the book "The Creature from Jekyll Island". Awesome book, even for a cranky old leftist conspiracy guy like me. Must read if you want to finally understand WTF is going on.

Fri, 11/04/2011 - 19:00 | 1846895 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

leftist conspiracy guy

Is that like a sober Russian guy?

Fri, 11/04/2011 - 18:09 | 1846748 RiverRoad
RiverRoad's picture

We're all third world now baby.....heh, heh, heh.  Smartest thing for Greece to do would be to go back on the Drachma, undersell everybody, and then laugh all the way to the bank.

Fri, 11/04/2011 - 18:22 | 1846794 markar
markar's picture

Can I believe what I'm seeing here?

Bart Chilton admitting there is silver market manipulation and should be prosecuted to the fullest extent of the law.

Fri, 11/04/2011 - 19:07 | 1846916 boooyaaaah
boooyaaaah's picture

If you walk down the street and find an open wallet with the name and address of the owner And 5,000 – 10,000 worth of cash you face a moral dilemma.

Keep the money throw away the wallet or return wallet only or return the money & the wallet

The wall street banksters found a wallet on the street

The wallet was dropped there by Fanny Freddie and the US Congress both Dem & Republican Who deemed it necessary to change century old lending requirements from--- you get a loan if you can repay To we will create a booming economy and get reelected if we loan money to people who can’t pay it back. (its better than begging for taxes)

All of these people, bankster and congressmen, had good parents They are accepted gentry polite and well spoken and would never camp out on a sidewalk – well maybe in their college days

What the banksters did with this wallet was not only to make the loan But also to package the loans and then redivide them so the bad loans were (illegally?) mixed up with the good loans. Illegaly? Because the resulting electronic deeds are still in the courts.

This in effect hid the bad loans. They wouldn’t tell you this. They would say it made all the loans good and bad = average

And then, just in case, the banksters made a side bet with an insurance company, AIG, that if the loans ever defaulted The banksters would not loose any money. Because AIG would make good on the loans.

As it turned out the loans failed And AIG did not really understand the loans they agreed to insure. And the banks and AIG were about to fail

So the whole system was about to freeze up ---but the Congress and the President and the Banksters got together And saved the situation by bailing out the Banks and AIG. They were to big to fail – and also too personally rich to have their companies fail right out from under them. It would not be “becoming”

Without failure capitalism loses it’s morality

The politicians by the way are gentlemen and well spoken and would never sleep on the street ---well maybe in college.

The bail out, though, where did it come from

It came from WE the people --- you know the ones mentioned in the constitution and the declaration

“a government of the people by the people for the people”

We who are “all created equal and endowed by our creator with unalienable rights” When was the last time you were bailed out from a loan

The right to life liberty and the pursuit of happiness What happiness what liberty when the Banskster and the Politicians use our money to bail out their scheme When it backfires

Sat, 11/05/2011 - 12:51 | 1848667 Snakeeyes
Snakeeyes's picture

It gets worse. Fannie and Freddie are suffering staggering losses (much of it from derivative losses). So, The Fed will gin up MORE Fannie/Freddie MBS purchases to provide "liquidity" to the MBS market. Translation: The Fed will purchase Fannie/Freddie MBS because the signal is that they are a fiscal disaster and The Fed has to flood the market with cash to prop up the mortgage leviathans.

A Closer Look at Mac’s Q3 Earnings of -$4.4 billion: Derivatives Losses of -$4.8 Billion and Lower Mortgage Insurance Recoveries


Sat, 11/05/2011 - 13:18 | 1848718 arkady
arkady's picture

Can anyone explain this:

USD is historically strong when the economy is weak – watch for reversal

Reversal of what exactly? Dollar has been in bottom formation for quite some what are they expecting to reverse? 

Sat, 11/05/2011 - 13:51 | 1848810 Dr. Nancy
Dr. Nancy's picture

All that's happening is predictable, as there are 7 stages that every major economy goes through. Those who know how it works profit & massive wealth is transferred to them. Several months ago I learned this information from a millionaire whose site I found & am sharing it with everyone I know

His free video

"How To Create Incredible Wealth in Today's Economic Crisis"

is at:

Hope this info helps everyone as much as it has me.

Dr. Nancy

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