Guest Post: Central Planning's Christmas Problem

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
jomama's picture

keep your friends close, and your enemies closer.

 -Sun Tzu

SheepDog-One's picture

I thought that was Michael Corleonne.

jdelano's picture

wow--like the antidote to Peter Tchir.  There's actually some clearly articulated and substantive thoughts in this.  Green.  Super green.  

pepperspray's picture

Get the FEMA camps ready

Silver Dreamer's picture

According to a video I saw today, they are activating them.  It was from Alex Jones though, so who knows for sure.

walküre's picture

It's a big government funded construction project. Send in your bid for the work.


andybev01's picture

How delightful, it's going to be catered!

Snakeeyes's picture

Peter Wallison. from AEI, went on Fox Business calling for a centralized European goverrnment letting Germany control what everyone else does. Central planning gone wild!

Rumble on The Rhine – Uncertainty About The Eurozone Treaty (Italy, Spain and Belgium Yields UP)


SheepDog-One's picture

Central planned fascism...its the 'NEW FREEDOM' ringing out all across Planet Banana.

Cangoroo's picture

Nice idea, I want to be in charge of that.

kito's picture

i swear i heard bernanke singing this the other day:

oh the euro dilemma is so frightful

but the fed is so delightful

and since the economy has no place to go

let the dollars snow, let them snow, let them snow


it doesnt show signs of stopping

and ive bought some stocks for the popping

the rates are turned way down low

let the dollars snow, let them snow, let them snow!!!!




WALLST8MY8BALL's picture

hey kids you can all sing along!


Got tossed from North Pole Christmas Eve.
His note was sliced and diced by LPS
Verified and signed by Linda Green

We were all so proud of Santa
He seemed to be happy with the Elves
But he missed just one monthly payment
Now he’s is in a banksta driven hell!

In the year since Santa was booted,
He took to Occupying Wall Street
But Bloomberg took away his tent and blanket

Now Santa’s living out on the street!

Got tossed out of the North Pole Christmas Eve.
His note was sliced and diced by LPS
Verified and signed by Linda Green

And as the year approached November,
Santa begged for a nickel or a dime
He didn’t even get one penny

While the Banksta’s never did any time

Christmas Eve saw Santa get a hosing,
As Bernanke printed a Trazzillion dollars more
Christmas Day, I saw the Banksta’s Gloating
Buying Hamptons mansions for their whores!

Got tossed out of the North Pole Christmas Eve.
His note was sliced and diced by LPS
Verified and signed by Linda Green

Lots of people saw the carnage,
Surely not a pretty Christmas sight.
No one could understood why Santa
took a beating from a NY Cop last night!

Got tossed out of the North Pole Christmas Eve.
His note was sliced and diced by LPS
Verified and signed by Linda Green


GeneMarchbanks's picture

'The perfect “crime” of wealth transfer is committing it without anyone ever knowing it is taking place.  I think Wall Street is and has been the direct benefactor of flawed monetary thought, reaping the vast, quiet reward of being the Federal Reserve’s pet monetary tool as it sought to implement the economic utopia of objective monetary science, enthusiastically joining Alan Greenspan in defeating the business cycle by enlarging the financial economy.'

Bang! +1

Great piece!

Comay Mierda's picture

Xmas will be good to silver and gold

charts look like there will be big gains this month

RobotTrader's picture

PM bulls better start praying for a breakout in the SPY


Especially the bank stocks.

Otherwise, well, you don't wanna know....

Mr Lennon Hendrix's picture

I will be able to buy so much SPY with my PM I won't know what to do with myself?

tmosley's picture

How can you continue to exist knowing that you spew such drivel?  S&P is flat on the year, while gold and silver are up 20 and 8% respectively.  And that's PAPER pricing.

DoChenRollingBearing's picture

+ 1

PAPER pricing alone.  Exactly right.  Robot might be right short term (like good traders tend to be), but physical gold and silver will get us through the mire (putting it softly) ahead.  R does sort of mentions the recent correlations of price of gold to moves in the equities.  Those two traditionally do NOT correlate well.

And history shows us that many things correlate for a while, until they don´t.  I´ll take the physical with any new money, thank you.

topcallingtroll's picture

Basically everything trades on reality and rumor of liquidity pumping.

Totally fooked up markets. I can only hope this is temporary until the patient is out of the ICU.

Getting tired of the bullshit where all risk assets seem short term correlated. Robo is right about that.

walküre's picture

What? And consumer stocks to the moon because LuLu's great ass-looking products are better than gold?

Those Walmart shoppers weren't fighting over Lulu's pants my friend.

SDRII's picture

Speaking of paternalistic sense of modern economic for a laugh post the Jamie Dimon pep rally at GS this afternoon talking up GE as best of class - just as they are going groveling for internet deposits. Must be the TGLP subsidy rolling off.


RobotTrader's picture

Amanda Drury looking extra juicy today

Check out the cleavage

walküre's picture

The 2008 crash was the necessary response to the dramatic build of inefficiencies from that dystopian drive, the neglect of the real economy in the paper chase of easy, inflated debt money.


Is the author suggesting that the 2008 crash was more random in nature? That it wasn't a planned event to withdraw massive amounts of liquidity only to reintroduce liquidity again later on much stricter terms?

If that were true than the PPT is not going to be able to stem the tide against the next random crash event and markets cannot be saved from crashing whether or not they're allowed to!

WonderDawg's picture

Did you actually feel the light bulb turn on?

walküre's picture

OK, what is it? Market is fully controlled and manipulated INCLUDING a crash when it suits them.

Or the market is actually "working" because not all players are being controlled and a random crash and liquidity withdrawal can happen at anytime.

The point of a centrally planned economy is obsolete when major participants can derail the plan at any given moment.


PulauHantu29's picture
Blagojevich sentenced to 14 years in prison

So when does Barry pardon him?

sabra1's picture

when does Barry join him? they can try out the new Fema Camps!

DoChenRollingBearing's picture

I think that newly-elected President Ron Paul may just let Barry go and live out his years unmolested...

blu's picture

Consumerism was bound to ruin Christmas regardless, the retailers couldn't stand the fact that people could enjoy Christmas absolutely free of charge just by being together and enjoy each other's company. Pepper spraying your fellow shoppers is likewise a manifestation of other ills, such as the acceptance of violence in media and the growing "shopping is a contact sport" mentality we see hyped by retailers.

There are fewer and fewer things we can "do" without a fee paid to someone. Try to find a place where you can just sit and read a book; unless you have a (well-tended and well-lit) public park left in your city that hasn't been take over by homeless and pants-on-the-ground gangbangers, then you are reduced to a $tarbuck$ or similar venue, assuming you can find a seat.

America, where you are forced to pay as you go. Especially at Christmas.

ebworthen's picture



Modern economists have taken the invisible hand out of the economy and into their laps - and wonder why their pursuits bear no children.

falak pema's picture

Modern economists have realized they are shamanists, druids, and wankers; their relevance depends on gaining the favours of a prince of politics, a Caesar Borgia. Thus begins their servitude, playing their lyre to please the impulses of their Prince. They begin their career as young seekers of truth of the philosopher's stone. As they advance into the myriad alleys of political maelstorm they realize their Prince needs their services to find expedient solutions of the moment, not great diatribes against the systemic risk of human ambition and crass avarice. So they bend like the judges, the bureaucrrats, the doctors and the lawmakers, to the deafening call of the moment, the excrutiating cry of a woman on verge of collective orgasm; instant gratitude in repetition; of ones  who hope a Prince cannot dash as avowed publican, avowed defender of general good : the consumer hungry, rank and file people. To serve Prince and gullible public, they bend, they distort reality, they become servants of half-truths, that turn into outright lies and finish like pathetic denials of dire vice, deviant descents into circles of the most depraved, dressed up in the toga of virtue, the best and the brightest, the skull and bones tradition, soldier monks in the cause of Holy Grails. The greater the standard deviance from reality the greater the sense of doing God's work selflessly.

The circle of life has achieved completion, they belong in the dustbin of History, having served their prince beyond the cause of duty. It is the chosen moment they receive from their Prince their medal of immortality, to enter the Pantheon of Nobels and thus to shut their consciences for the ages, they finish as shadows of their youth, chippering birds in the incoherence of the media forums, Sirens of Man's decadence, worse, deus ex machina of Prince's darkest dreams of human servitude; Karl Roves, or Dick Cheneys. Hank Paulsons or the Bernanke. May God forgive their sins and send them to eternal purgatory, where they learn the ways of the Liberal. I couldn't think of worse punishment for their ilk.

Obviously one could draw the same picture for the TRUE Keynesian breed of opportunists who pander to their liberal Princes. Life's political circle is truly unique whichever way you enter it.

RobotTrader's picture

Miracles happen.


Who would have guessed that the 2008 mortgage meltdown would have resulted in millions of homeowners skating on their mortgage payment for 3 years and creating the biggest spending bonanza in 25 years?

And at the same time interest rates are at 50-year lows while Bernanke prints trillions?

And no inflation to boot, with SLV, DBA, UNG, etc. constantly crashing when there is a whiff of a financial crisis?

Mr Lennon Hendrix's picture

So it is not only Nation-States that are getting credit downgrades, it is the consumers too.  And this is bullish for the long term, how?

jmc8888's picture

Good article.

Everyone needs to remember the validity of any of these models is binary.  It can only be 0 or 1.  Guess what, they've never in the history of models created a '1'.  All of these models have always been '0', it was just easily looked over during the great rig job.  It was easy to say something close was a 1 (or whatever non-number they labeled it close to 1).

Money is a tool, it isn't wealth.  Wealth is water, energy, the things we need.  We can either focus on those things, or focus on 'money'.  Money that is being hyperinflated away.  For fraud.

There is a better way.

Impeach Obama

American Credit System

Glass-Steagall or broke (literally)

DoChenRollingBearing's picture

+ 1

Yes, jmc this was a great article.  I analyze sales data as part of my work re buying bearings.  I am always looking for correlations and trends...  And yet I have seen the paradigms (of vehicle bearing sales) change because of new vehicles coming in and other conditions changing.  It is ALWAYS happening, everything in even this fairly straightforward business is always in flux.

It is indeed dangerous to depend on statistical or otehr quantitative models too much without having solid ¨boots on the ground¨ information.

Tyler(s)!  Keep stuff like this coming!

11b40's picture

Yes, I agree jmc, it was a very good article...but it stopped short of actionable steps to seek some solutions and control over the process.  Wall Street based "reformers" seem to have trouble getting their minds around concepts that would truly change the playing field.

You are exactly right.  Bring back Glass-Steagall and make basic banking a nice, quiet fundamental business again.  No reason other than the bankers abilkity to steal for Federally licensed banking to be much different than any other public utility...and if you don't want to be a banker under those conditions, then fu*k off.  Go into the brokerage casino and gamble with your own money all you like, just like the rest of us.

Then, change the law to strip corporations of their "personhood" - a stupid concept to begin with - and remove all corporate funding of political campaigns.  At the same time, amend the law to allow only registered voters to make campaign contributions, thus taking away any advantages that unions would gain.

Some very fundamental, common sense changes wold go a long way toward righting the good ship America.

Caviar Emptor's picture

Yes there's a seasonal pattern. No, it's not what was hoped for because consumers are now addicted to bargains and reluctant to open wallets. But yes, this was anticipated and adjustments were made. Successful consumer companies have to run lean. There's very little room to pass costs on to consumers, yet input costs keep rising. 

duo's picture

I wish I had skipped to the last paragraph.

Our society also tends to confuse luck with genious.

WALLST8MY8BALL's picture

And genius with genious

rambler6421's picture

Ponururu basically advocating Monetarism.  Yuck.

ISEEIT's picture

Fantastic article. Unfortunately none of what he articulates will ever be put to practice unless/until the regime collapses.

walküre's picture

Time for the 3pm rumor mill to fire up!