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Gold And Grand Theft Economics

Tyler Durden's picture


The tectonic battle between a market trying to deflate its debts and the central banks attempting to reflate the impaired assets to maintain the status quo is becoming increasingly violent. In a brief clip, Santiago Capital's Brent Johnson explains the fallacy of fiat money, the dynamics of the velocity of money in a 'troubled' economy, the 'we are going to give the banks a lot of money' plans, and the inevitable 'there's no more money' moment when the inflationary and deflationary tremors come unstuck and become shock-waves. There will be no warning, no bell-ringing at the onset of the end of the monetary system itself as he notes the slate of Stability & Growth Pacts (EU) and The Recovery and Reinvestment Act (US) will inevitably be seen as the greatest unauthorized transfer of wealth in history - and being exposed to gold stored outside of the banking system, there is a protected route as the world staggers from tremor to tremor.


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Tue, 08/07/2012 - 17:47 | 2685900 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

In this brief clip....

Shit man I write that on Zero Hedge like everyday.

And I write it better than anybody.

Tue, 08/07/2012 - 18:23 | 2685978 Thomas
Thomas's picture

BTW-Kotlikoff says that the unfunded liabilities, which he puts at $210T, are the liabilities remaining after the projected tax revenues and other expenses have been factored in. These really are the ones that are unfunded with no obvious way to fund them.

Tue, 08/07/2012 - 18:29 | 2685994 DoChenRollingBearing
DoChenRollingBearing's picture

@ Thomas

The unfunded liabilities CANNOT be paid pack.  Either default or default via high inflation.

Tue, 08/07/2012 - 18:36 | 2686012 Jay Gould Esq.
Jay Gould Esq.'s picture

Quite so.

It would be no surprise at all if, in the not too distant future, an absolutist North American government invokes, by executive order, "for the public good," the ancient "debt jubilee."

Tue, 08/07/2012 - 18:42 | 2686026 veyron
veyron's picture

Unfortunately we have no queen ...

Tue, 08/07/2012 - 18:50 | 2686053 tenpanhandle
tenpanhandle's picture

what about Barney frank?

Tue, 08/07/2012 - 18:56 | 2686071 DoChenRollingBearing
DoChenRollingBearing's picture

+ 145

Tue, 08/07/2012 - 19:30 | 2686164 JPM Hater001
JPM Hater001's picture

Slow Clap for the conclusion...I dont want it either...but prepare we must.

Tue, 08/07/2012 - 19:37 | 2686175 Pladizow
Pladizow's picture

Distiguish between a debt and a liability - there is NO legal obligation to pay a liability - buy buy SS, medicare & Medicaid!

Tue, 08/07/2012 - 21:23 | 2686425 economics9698
economics9698's picture

Sounds like a infomercial for gold.

Tue, 08/07/2012 - 20:10 | 2686263 Dr. Engali
Dr. Engali's picture

    +1  LOl funniest comment I've read today.

Tue, 08/07/2012 - 18:49 | 2686050 tenpanhandle
tenpanhandle's picture

Unfunded liabilities equate to unfunded promises.  Get rid of promisers and liabilities never get paid. Get rid of the promisees and liabilities disappear.  In any event, I would be quite alarmed if I relied upon the Govt. to provide my sustenance.

Tue, 08/07/2012 - 19:12 | 2686114 hannah
hannah's picture

"Gold is the corpse of value,. . . . Wealth that is stored up in gold is dead. It rots and stinks."


Tue, 08/07/2012 - 19:38 | 2686178 Pladizow
Pladizow's picture

I love that smell!

Tue, 08/07/2012 - 22:13 | 2686514 mjcOH1
mjcOH1's picture

"I love that smell!"


It's the smell of victory.

Tue, 08/07/2012 - 21:31 | 2686440 kliguy38
kliguy38's picture

that's exactly what the proles are supposed to think.......stay away from works...until it doesnt'

Wed, 08/08/2012 - 06:27 | 2686998 Freddie
Freddie's picture

"Gold is the corpse of value,...."

Do they keep that "corpse" over at the J.P. Morgue?

Tue, 08/07/2012 - 19:57 | 2686222 Stuck on Zero
Stuck on Zero's picture

Every unfunded liability is someone's (assumed) asset.  Just make sure your assets aren't unfunded.


Wed, 08/08/2012 - 03:46 | 2686930 Silver Alert
Silver Alert's picture

They would never have to be paid out if lots of people died.

Tue, 08/07/2012 - 20:01 | 2686235 CheapBastard
CheapBastard's picture

Someone will shoulder the debt.



Bonds for $105 Million to Cost School Over $1 Billion

A California school district is shouldering $1 billion in interest on a $105 million bond in a deal intended to defer most of the payments for 35 to 40 years.

The Poway Unified School District, in San Diego County, structured its 2011 sale of capital-appreciation bonds to avoid debt service until 2033, with the largest sums -- more than $300 million each -- due in 2046 and in 2051, according to data compiled by Bloomberg.

Wed, 08/08/2012 - 21:19 | 2689608 draghithebearslayer
draghithebearslayer's picture

It doesn't take a genius to see that the rationale behind that deal was something like "By the time we have to repay the debts, I'll be long gone/retired/dead, so it's not my problem!" The question I ponder is whether the borrowers really expect them to pay back that money, because the people who's gonna be in charge, those in teens and 20s now, sure as hell won't.


Tue, 08/07/2012 - 17:51 | 2685911 Robot Traders Mom
Robot Traders Mom's picture

"There will be no warning, no bell-ringing at the onset of the end of the monetary system itself"


All the manipulation, all the hatred towards Blythe, etc we should all be treating as a gift to buy more because when that final bell rings, it will be too late.

Tue, 08/07/2012 - 17:55 | 2685920 malikai
malikai's picture

I love her. She taught me things I can not even begin to describe. Painful things.

Tue, 08/07/2012 - 18:12 | 2685954 francis_sawyer
francis_sawyer's picture

I'm not paying her for the sex... I'm paying her TO LEAVE after it's done... (& furthermore ~ it was SHE who insisted settlement in her coinage [or paperage] of choice)...

Fuck her if she can't take a joke... No ~ REALLY!

Tue, 08/07/2012 - 23:02 | 2686600 Chuck Walla
Chuck Walla's picture

I'm not paying her for the sex... I'm paying her TO LEAVE after it's done... (& furthermore ~ it was SHE who insisted settlement in her coinage [or paperage] of choice)...

Oh, you're paying her for sex. But she's fucking you and the rest of "the little people" with Bawney Fwank's dildo.



Tue, 08/07/2012 - 18:27 | 2685985 DoChenRollingBearing
DoChenRollingBearing's picture

@ Robot's Mom

+ 1

Trouble usually arrives unannounced and unexpectedly...  Practically the definition of a Black Swan.  I cannot predict the future (hardly anyone can), so I hedge as much as possible.  Gold is perhaps the BEST way.  Physical gold at a bit over $1600 is very underpriced.  I agree: "Thanks, Blythe!"

And when "that Monday" arrives, the gold will be all gone withing 48 hours, max...

Tue, 08/07/2012 - 18:35 | 2686007 resurger
resurger's picture

She's running a matched book ...


Tue, 08/07/2012 - 18:52 | 2686059 tenpanhandle
tenpanhandle's picture

@Robot traders Mom:

Of all the avatars on Zero Hedge, yours is the only one that actually freaks me out.

Tue, 08/07/2012 - 19:21 | 2686141 PersonalRespons...
PersonalResponsibility's picture

Still the only one?

Tue, 08/07/2012 - 19:54 | 2686219 tenpanhandle
tenpanhandle's picture

actually, I thought Robot Traders Mom's avitar was a pic of  Hilliary when she was young.

Tue, 08/07/2012 - 20:25 | 2686298 Manthong
Manthong's picture

I kind of thought that's what the spawn of Pelosi and Reid would look like.

Tue, 08/07/2012 - 20:13 | 2686273 Hobbleknee
Hobbleknee's picture

But does it have a compass in the crotch?

Tue, 08/07/2012 - 20:55 | 2686370 tenpanhandle
tenpanhandle's picture

I would not even venture a guess what it has in the crotch.

Wed, 08/08/2012 - 06:51 | 2687007 MillionDollarBoner_
MillionDollarBoner_'s picture

Is that, like, a directional compass?

Or one like in my geometry set? 

Tue, 08/07/2012 - 23:05 | 2686607 Chuck Walla
Chuck Walla's picture

Of all the avatars on Zero Hedge, yours is the only one that actually freaks me out.


You really HAD to know Robot Trader to get it.  Believe me, its a reasonably accurate depiction.



Tue, 08/07/2012 - 17:54 | 2685915 youngman
youngman's picture

I agree it will happen over some weekend.....and come Monday will be a clusterfuck....everyone scrambling to get on the train...but it will be much more expensive if not impossible...

Tue, 08/07/2012 - 18:19 | 2685974 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, + 1

It is important that we all pay attention to what is going on, particularly on the weekends.  Weekends provide lots of cover for The Mainstream Media to keep everything quietER.

It is harder to buy physical gold on the weekends as well...  And the following Monday?  Last chance, beat the rush!

Tue, 08/07/2012 - 20:40 | 2686336 sosoome
sosoome's picture

"...and come Monday will be a clusterfuck....everyone scrambling to get on the train..."

Come monday morning, the train will have are gone.

Tue, 08/07/2012 - 17:54 | 2685919 LawsofPhysics
LawsofPhysics's picture

Is there any way at all to follow the total monetary base of the world, not just the dollar?  What is the total monetary base of all fiats currently being held in real vaults or in the electronic world?

By the way, that which cannot be sustained, won't. Hedge accordingly, that's all you can do anyway.

Tue, 08/07/2012 - 17:56 | 2685922 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

One million dollars!

Tue, 08/07/2012 - 22:20 | 2686521 mjcOH1
mjcOH1's picture

To parraphrase, "I will gladly trade you one hamburger oday for 1 milion dollars tomorrow".


There's going to need to be a lot of dubbing to adjust the context for the kiddies...

Tue, 08/07/2012 - 20:15 | 2686278 Bay of Pigs
Bay of Pigs's picture

Wait a second, all the USD bulls told me otherwise....


Tue, 08/07/2012 - 23:20 | 2686624 mick_richfield
mick_richfield's picture

You mean M1, right?  Not M3.

I'm going to guess that's between 10 and 15 trillion USD equivalent.



Tue, 08/07/2012 - 17:58 | 2685928 booboo
booboo's picture

Well, if Brent REALLY believed that competing Tectonic forces give no warning he may want to move out of that 2nd floor of his San Francisco office.

Tue, 08/07/2012 - 18:56 | 2686067 tenpanhandle
tenpanhandle's picture

when the birds stop tweeting and the dogs start barking, buy all the gold you got cash for.

Tue, 08/07/2012 - 19:04 | 2686092 JohnG
JohnG's picture

So NOW then....

Tue, 08/07/2012 - 17:59 | 2685932 Surrealist
Surrealist's picture

The UK Terrorgraph's International Business Editor of Doom - Ambrose Evans-Pritchard - is now cheering global economic recovery based on money supply data. What gives?


Global slump risk falls as world money rebounds


Tue, 08/07/2012 - 18:01 | 2685939 magpie
magpie's picture

I fear he has been gleichgeschaltet after recent events...

Tue, 08/07/2012 - 19:42 | 2686081 chump666
chump666's picture

He has thrown out some bad calls, this guy, trying to stay ahead of the a journalist. 

Now if he trades in the market, what he will notice, yes, there is money supply, neg real interest rates as central banks and governments only look at stock charts to judge economic recovery...but, inflation has HIT the middle east, India, Asia and slammed right into China.  Proof?  USD bids every singe day when Asian market open, in other words Asia is dumping their currencies and running to the USD, manly corporations buying up.

If you are bullish and long you get killed with volatility, simple, market is topping out on a re-inflation trade via ECB bond buying (Italy/Spanish debt), the ECB will blame Germany for a stock market crash, so Merkel will throw in the towel (sans dissent and the Germans finally waking up to the fact they got gamed by non elected EU/ECB officials...till then.)  The ECB is now a rogue governing body within Europe.  Still, markets need DXY sells to justify long rallies, this won't happen as long as inflation is ripping through the east.  Next port of call, war.  Middle East is about blow up (all of it), China getting frisky with India (south china sea gas disputes) etc.  oil Inflation leads to war. 

War will kill the bond markets and send stocks into a crash, USD/gold/oil will be bid etc


Tue, 08/07/2012 - 18:00 | 2685933 extendedorder
extendedorder's picture


Tue, 08/07/2012 - 18:00 | 2685935 Catullus
Catullus's picture

Quoting Rothbard.  Nice.

Tue, 08/07/2012 - 18:02 | 2685938 yabyum
yabyum's picture

Go down to your stack, take a ASE or a old Morgan silver dollar, wack it on a table. That my friends is the sound of money. No sound=no money. PS have you ever noticed the "We buy gold places.....never sell gold?

Tue, 08/07/2012 - 18:34 | 2686004 stocktivity
stocktivity's picture

Just for the hell of it, check out their "buy" prices. The signs should say "We steal Gold". You can bet they sell it....just not at places with signs in front that say "We buy Gold".

Tue, 08/07/2012 - 19:22 | 2686142 Alea Iactaest
Alea Iactaest's picture

I had no idea the "we buy gold" thing was international... just learned that this weekend on ZH reading about Italy.

Now I want to know who actually is buying. Is this some opportunistic investment to buy low and sell high, taking advantage of people needing cash? Or is this something more, something designed to suck up as much gold as possible?

Tue, 08/07/2012 - 23:11 | 2686613 Lord Koos
Lord Koos's picture

"Is this some opportunistic investment to buy low and sell high, taking advantage of people needing cash? Or is this something more, something designed to suck up as much gold as possible?" 

You think these two things are mutually exclusive?

Tue, 08/07/2012 - 20:58 | 2686376 blindman
blindman's picture

they sell to refineries which is where
you should sell if you haven't got coins
or bars and a dealer that buys above spot
price, or so i hear as i have never sold to
look for a refinery to deal with is the
message and compare prices.

Tue, 08/07/2012 - 18:01 | 2685941 Law97
Law97's picture

We've been losing so much money trying to short this pig, that we'll all be broke by the time the market finally *does* collapse.

Tue, 08/07/2012 - 18:04 | 2685948 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Which market?  There are many markets.  And which one are you guessing will collapse?  Stocks?  Why?  Because they have before?  Why not the bond market?  Because the Fed says they will keep rates low?  Well then why wouldn't the presure lie on the dollar market?

Do any of you actually think about things or do you just pound buttons like monkeys?

Tue, 08/07/2012 - 18:35 | 2686008 Law97
Law97's picture

All of the above.  That's why I didn't specify which of the financial markets.  The collapse of the monetary system will not be good for company earnngs.  Now we can argue over whether nominal stock values will still be up at that point, but who cares if the real value has plummeted.  The nond market will plummet in this scenario also as rates will go shy high and many firms and sovereigns default.  Remember, real economic activity will plummet, which will have many second and third order effects.  Perhaps some bonds will actually increase in real value, those seen as safe havens such as Swiss gov't bonds, but that will depend on how much those countries get dragged down with the rest of the world. The closer the instrument is connected to a safe real asset, the better it will hold up.  I actually think some real estate will hold up pretty well, as everyone scrambles to convert tro anything of any intrinsic value.

No I am going to go back to eating my banana.....

Tue, 08/07/2012 - 21:32 | 2686446 Doña K
Doña K's picture

If you are short the market and Monday doom comes, you will not get paid anyway. Change your strategy. Buy physical PM's and sleep tight. Use the extra time of not worrying to hug your kids and make love to your spouse.

Wed, 08/08/2012 - 06:59 | 2687012 MillionDollarBoner_
MillionDollarBoner_'s picture

“The market can stay irrational longer than you can stay solvent.”

J. M. Keynes ;o)

Tue, 08/07/2012 - 18:42 | 2686021 Law97
Law97's picture

I am myself sometimes frustrated with the level of some of the drivel posted in the comments.  My point in my first post was that many of the ZH readers are fundamentally correct in their economic understanding, especially with macro, yet the current interventionist environment makes it nearly impossible to profitably trade or "invest" on such understanding.

Tue, 08/07/2012 - 18:59 | 2686079 tenpanhandle
tenpanhandle's picture

that is why, IMO, that the only alternative is to hedge and protect i.e. buy bullion and necessities and hunker.

Tue, 08/07/2012 - 19:28 | 2686160 Meesohaawnee
Meesohaawnee's picture

i hear ya law.. loud and clear!

Tue, 08/07/2012 - 20:56 | 2686372 sosoome
sosoome's picture

"interventionist environment "

How quaint.

Tue, 08/07/2012 - 19:02 | 2686088 GOLDTEETHSILVER...

Farmers Market!

Tue, 08/07/2012 - 18:02 | 2685943 El Oregonian
El Oregonian's picture

Must... buy... more... silver....

Tue, 08/07/2012 - 18:10 | 2685958 nmewn
nmewn's picture

"The Recovery and Reinvestment Act (US) will inevitably be seen as the greatest unauthorized transfer of wealth in history..."


Tue, 08/07/2012 - 18:27 | 2685987 Jendrzejczyk
Jendrzejczyk's picture

There's a small group of dissenters that believe the award goes to the transfer of wealth to ex-wives, but they are confusing "unauthorized" with "unwarranted". Simple semantics dispute.

Tue, 08/07/2012 - 18:14 | 2685963 JohnKozac
JohnKozac's picture

"global balance sheet expanded over 300%"...and they are just warming up.

The next 300% will be colorful and exciting.

Tue, 08/07/2012 - 19:23 | 2686145 Alea Iactaest
Alea Iactaest's picture

And faster.

Tue, 08/07/2012 - 18:22 | 2685977 Clueless but Ca...
Clueless but Catching On's picture

I am too poor to even buy enough silver for it to do any good.  What can I do to protect my family?

Tue, 08/07/2012 - 18:29 | 2685990 jomama
jomama's picture

there is no such thing as buying too little silver.

Tue, 08/07/2012 - 18:34 | 2686001 DoChenRollingBearing
DoChenRollingBearing's picture

Beat me to it, jomama, + 1.

Buy ANY silver that you can, it will be worth more than just about anything that will be relatively cheap (food, gasoline) when things get rough.

My preference is gold, but if all you can buy is silver, then BUY SILVER!  A very few ounces might be all it takes to save your family.  Cut spending somewhere else...

Tue, 08/07/2012 - 20:23 | 2686290 RobD
RobD's picture

A couple of junk silver quarters(about $10 at current prices) could buy you a few gallons of gas to get you out of dodge when paper only gets a "I'm not taking that garbage" from the gas station owner.

Tue, 08/07/2012 - 18:34 | 2686005 Slightly Insane
Slightly Insane's picture

Start with reading, "speed reading" as you are late to the game.  Build on skills that will be useful in bartering situations, and being able to "repair anything".  If your occupation is not relevent in a survival of the fittest, then it is essential to develop useful hobbies which will be of value to someone on the other side of the equation.  Time is not on your side as I think that you have at best 6 months before things change.

Tue, 08/07/2012 - 18:37 | 2686013 Jendrzejczyk
Jendrzejczyk's picture

You must be able to afford a few silver dimes. Buy as many as you can each week. You may amass quite a bit by the time this bitch finally implodes/explodes.

Tue, 08/07/2012 - 18:41 | 2686015 Dr. Engali
Dr. Engali's picture

Buy anything tangible you can. Stock up on long term food, Items to barter also. If you can't buy a lot of precious metals buy as much "junk silver"(pre 1965 coins) as you can. You can get it at a discount to the traditional bars and coins, and it's easily recognizable. Don't over look vices either. Cigarettes, booze, and other vices can be powerful bartering tools. Think of people in jail ... Cigarettes are as good as gold. Whatever you do you need to have protection. A gun you know how to use and ammo to use in it. If you don't have much money to purchase anything don't underestimate the versatility of a .22 and the ammo is cheap. Develope some useful skills. A strong back and strong skillset will be important when shtf.

Tue, 08/07/2012 - 18:51 | 2686058 Getting Old Sucks
Getting Old Sucks's picture

LOL, those smokes are MINE!

Tue, 08/07/2012 - 18:43 | 2686018's picture

I am too poor to even buy enough silver for it to do any good.  What can I do to protect my family?


1. Get out of debt. Some will tell you that your debt will inflate away but that's entirely speculative. Better to stop paying interest to the bankers sooner rather than latter.

2. Develop skills that make you more productive at home and at work.

3. Stock up on some long term supplies. Just save up a little extra cash and when things that you regularly use go on sale buy them by the dozen. If you buy 12 jars of spaghetti sauce on sale then you can buy two less jars per month and you put that money into your next purchase of a dozen cans of beans. And so on. Even if you never have to use the food and supplies in an emergency you will still use them and you will have saved money by getting them on sale.

4. Get rid of all the crap you think you need but really don't. I used to spend $60 month on satellite TV. I now watch free TV with the use of a pair of rabbit ears and there's just as much interesting stuff on the three channels I get as on the 150 channels of crap on the satellite.

5. Seek out and befriend self reliant people in your neighborhood. Learn what they know and develop some skill to offer them in return for their help.

6. Get tips like these from as many sources as you can.



Tue, 08/07/2012 - 18:50 | 2686054 LasVegasDave
LasVegasDave's picture

What a cocksucking cheapskate you are Crockett!!!

To save $60 bucks you ditch satellite and stick rabbit ears on your TV???

I know , I know, if the Jews didnt control Hollywood, you'd be able to afford it.

Funny; the heebs are known for being "thrifty" too.


Tue, 08/07/2012 - 18:55 | 2686065's picture

Let me guess, you and the rabbit were friends.

Wed, 08/08/2012 - 01:08 | 2686783 Bringin It
Bringin It's picture

Funny Crockett, you and the rabbit ears.  Why not just move on?  Move past the talking picture show and you will see more clearly.

Tue, 08/07/2012 - 19:51 | 2686212 yabyum
yabyum's picture

Gee Whiz Vegas Dave,  Are you the old "liberal sodomy"?

Tue, 08/07/2012 - 19:49 | 2686203 yabyum
yabyum's picture

Take a first aid class. A EMT will be a person who will needed, even a advanced course will be valuable.

Tue, 08/07/2012 - 21:13 | 2686407 Think for yourself
Think for yourself's picture

"Get out of debt"? Really?

That was the first priority for those taking the red pill in 2010-2011. Things are moving fast. No time to save much anymore - just stop paying your fucking debts, your mortgage, everything! It's all paper losses to them, based on fractional reserve multiplication of free money from the fed anyway. Way things are going, there won't be anybody who'll knock on your door to get it back in the next 4 months either way, and after November there's no rules anymore.

Stocking up by getting batches of single supplies? I hope you'll be glad to have 3 months of tomato paste when it all comes down, but without any pasta because you were still waiting for a sale. Supplies should be your priority, not a small nagging thing in the back of your head that you throw a couple of FRNs at once in a while just to get some peace of mind.
Build up all the supplies you need to be independent for 1 month. Once you get there build up for 2 months. Then 6. Make sure it's all stuff you use, and that most aspects are covered - you can trade for the rest, but trading implies the risk that other people figure out you have most of what you need.

4. Get rid of satellite TV and go back to dog-ears? Really? If there was a single act that a man could take to save his soul, ditching tv entirely would probably it
By the way, if you drink, quit. If you can't quite, reduce. You might want to keep buying just as much, though, but save it for trading. Especially spirits, beers take too much space. If you have a hard time with your other preps, then reduce what you buy. Same thing if you smoke: quit. Or at least smoke less. This is as much for saving money as giving some love to your body.

Which brings me to my next point:
Get off your ass. When getting somewhere would take you less than 15 minutes walking, drop your car. Drop the elevator. Go out, party and dance. Start training, or having larger amounts of aerobic sex. Whatever floats your boat, but get those muscles moving.

And drop all sodas. Energy drinks. Sweeteners. Candy bars. Chips and other shitty snacks.

Oh, and the most important of all, get in peace with yourself. You're trying, and probably doing your best. By definition, that's all you can do. But if you're not doing it, and you kind of know it but don't want to face it - then listen to that nagging little voice in your head that tells you you should be ashamed and are worthless! Listen to it, say "that's right, up to now I've been", AND THEN CHANGE IT! 

Tue, 08/07/2012 - 23:41 | 2686655's picture

A guy says he's poor and wants to protect his family and you suggest that he default on his mortgage and stop paying his bills? And your basis for this advice is some mumbo jumbo from a bad sci-fi flick about "red pills?" I hate to break it to you but the terminally stupid won't do well no matter what the future economic landscape looks like.

Wed, 08/08/2012 - 00:44 | 2686760 Think for yourself
Think for yourself's picture

Sure, he can just keep paying his debts, be a nice little rat who keeps running in the wheel, energizing the very system that will surely leash his children into slavery. That's a winning long-term plan. Refusing to withdraw your acquiescence from such a world order is exactly the same as actively supporting it.

As for the "red pill", chill out. It's a common symbol that has become integrated in modern lingo and is usually linked with a rising awareness that dank, dark corners exist in the system we live in, and that by looking backstage you realize your reality is very different to the ideas you had up to now.

Your personal failure to entertain the meaning of a metaphor is in no way a qualifier of its worth.

Wed, 08/08/2012 - 12:34 | 2687995 Think for yourself
Think for yourself's picture

Did that hit a nerve? Yes, I do recommend it. It's a vital step to save humanity, both yours and the species itself.

How can't you see that paying your taxes, paying back your debts to the big banks... you know it is mathematically impossible to pay back all the principal + interest, yet in this system of scarcity you compete for capital with which to back back the unpayable interest, and if you manage to do so you are necessarily leaving all of the others in a situation even more untenable, with an even scarcer amount of money to pay back a greater amount of debts.

You mouth off but don't put your money where your mouth is - well, you might, litterally speaking, by investing in PMs and/or preps, but you definitely do not follow your reasoning to the end. You may bitch and moan about Babylon, but you still live in it, you pay your taxes, help TPTB put oil in their engines. Many still have destructive, parasitic jobs kicking your brothers while they're down, but you justify it because "you need to" for whatever reason. You still live in the satanic inversion of values that living in Babylon makes necessary, that is, thinking that the ends "my family and their safety" justify the means "support the system so you don't make waves". Aside from the obvious lack of mid/long term systemic analysis, it points at an even worse thing: a void of ethics in your lifestyle. Babylon has converted you in machine-men with machine hearts.

Of course, that doesn't apply to everybody. Many here are very awake to this and are doing something about it. Some believe that they can manage to work within Babylon while being more subversive than supportive to it.Many feel the inner conflict of ethics but are not sure how to deal with it. No matter - feeling that ethical conflict means you're still human. You'll need to listen to it and act on it, though, because if you crush it down long enough, that little voice inside will die and you will have become a machine-man.

Wed, 08/08/2012 - 14:36 | 2688456 Clueless but Ca...
Clueless but Catching On's picture

Thanks for all the good advice.  Just so you know, I can probably feed my family for 4-5 months on what I have in the house.  I am WELL armed, can put 3 in a silver dollar from 300yards and reload.  Just not much in the way of justifying spending hard earned money on silver instead of food.

Tue, 08/07/2012 - 18:42 | 2686028 El Oregonian
El Oregonian's picture

I started collecting several years ago and it started with my first OZ. That's how it is done. Remember, collect it as you would any hobby and you will not go wrong...

Tue, 08/07/2012 - 18:44 | 2686033 CunnyFunt
CunnyFunt's picture


Tue, 08/07/2012 - 22:45 | 2686577 slewie the pi-rat
slewie the pi-rat's picture


Wed, 08/08/2012 - 21:21 | 2689618 CunnyFunt
CunnyFunt's picture

Funny. It took this dumb cunt too long to get it and green you!

Tue, 08/07/2012 - 21:01 | 2686384 Westcoastliberal
Westcoastliberal's picture

Buy a cross bow, plenty of arrows, & learn to use it well, my friend.

Tue, 08/07/2012 - 22:43 | 2686571 mvsjcl
mvsjcl's picture

Welcome, Clueless.

Tue, 08/07/2012 - 18:23 | 2685979 youngman
youngman's picture

I think food is going to be the trigger.....lots of hungry mouths to feed and I think we have a little shortage going on..and droughts last for 10 years..give or take a few...

Tue, 08/07/2012 - 19:36 | 2686173 hmmtellmemore
hmmtellmemore's picture

People need to stop focusing so much on food, for pete's sake.  Food is not going to be difficult to find.  Beans and rice are cheap, for example, and will stay that way even during a crisis.  Of course, some foods like meat which take many acres of land for feed and many more energy calories to produce than vegetables will indeed skyrocket in price.  But no one is going to starve by skipping steak.  Eggs, dairy, bread, potatoes, beans, rice, and there will always be small farms selling fresh produce.

Tue, 08/07/2012 - 20:35 | 2686323 Winston Churchill
Winston Churchill's picture

Depends where you live.

If your a city dweller,not going to be any  good.

If you're  rural but close to a city, maybe even worse.Crazed city dwellers are

going to rape and pillage.

I may just sit offshore for a couple of months.thats one of my backup plans.

But I'm sure there will be pirates there as well.


Tue, 08/07/2012 - 20:50 | 2686362 mt paul
mt paul's picture


the new white meat...

Tue, 08/07/2012 - 18:26 | 2685982 silverserfer
silverserfer's picture

the game will end when most of the gold is in private elite hands. were almost there. all this fiat drama is just froth to distract the masses.

Tue, 08/07/2012 - 18:33 | 2685997 resurger
resurger's picture

We are at cross roads:

1- If Inflation = gold is up (due to printing)

2- If deflation = check John Exters

The Central Bankers are pretty much fucked.


Gold & Silver

Tue, 08/07/2012 - 18:33 | 2686000 The Alarmist
The Alarmist's picture

Sure.  What will really happen is that private ownership of non-jewelry gold will be outlawed, once again, and the final nail will be hammered into the coffin of physical fiat as the world goes e-money .... You want to eat? Grow it yourself, or use their money, otherwise starve with the other kulaks. 

Tue, 08/07/2012 - 18:43 | 2686031 Jendrzejczyk
Jendrzejczyk's picture

It ain't hard to hammer a gold doubloon into a ring.

Tue, 08/07/2012 - 18:46 | 2686039's picture

"They" definitely want to put us on a digital currency standard however they also make billions from criminal activity such as drug trafficking and so they'll want to leave some avenue open to continue those operations.

Wed, 08/08/2012 - 03:50 | 2686935 CCanuck
CCanuck's picture

Hunger Games.

Wanna Hit?? Put your name in the Hat!!!

Tue, 08/07/2012 - 18:34 | 2686003 Getting Old Sucks
Getting Old Sucks's picture

I have no plans to ever try to spend my gold and silver.  It's all going to my grandchildren because it will be either physically confiscated or taxed as if confiscated.  Perhaps if hidden, my grandchildren can use it to prosper.  If I end up destitute, I will do all I can to starve the beast.  With my voting power and about 75 million other Boomer voters, demand our corrupt government fulfill their false promises and pay up.  Of course, they eventually won't be able to, but not before they try to break the back of our children, Gen X (who is larger than the us Boomers), rise up and force their hand.  Then you will have 150 Million strong, a force which will finally rise up and take our corrupt government back because they (Gen X) will become the newly elected leaders.  Then get the lamp posts ready.  Be very afraid powers to be.

Tue, 08/07/2012 - 18:47 | 2686045 death_to_fed_tyranny
death_to_fed_tyranny's picture

As a Gen Xer. My generation is basically asleep. Professional Sports keeps the men asleep. Reality TV keeps the women asleep. When GEN-Xers children are starving, they will enter the FEMA camps. Start awakening your children Getting Old Sucks. Otherwise yor grandchildren will enter the camps unwittingly.

Tue, 08/07/2012 - 19:03 | 2686089 Getting Old Sucks
Getting Old Sucks's picture

Three of four read Zero Hedge.  The best we boomers can do is wake our kids up.  LOL, kids, they're all in their 30's and 40's.  You are right though, most Gen X are still asleep.  However, they will eventually wake up, REAL ANGRY.  That will be a really great day for the country.  BOOMERS!  Start educating!  Gen X!  Start fighting!

Tue, 08/07/2012 - 19:14 | 2686121 death_to_fed_tyranny
death_to_fed_tyranny's picture

I'm fighting. Trying to awaken my circle. It is hard but I have converts. Many more call me a crazy conspiracy theorist. I wear it as a badge of honor! I know I am right!:}

Tue, 08/07/2012 - 19:46 | 2686200 Getting Old Sucks
Getting Old Sucks's picture

The best way, and this is the way I use with everyone.  Just say that if they want to know what's really going on with the economy is to read Zero Hedge (not looking for a fee Tyler, LOL).  I've done this with many people besides my kids and they all come back saying they follow it all the time.  If I tell someone all that I believe to know, they just consider it fear mongering. 

Tue, 08/07/2012 - 23:59 | 2686698 VallejoVillain
VallejoVillain's picture

Talk about asleep. I pull into the gas station out of work. This loser was 22-25 Pulls up into the pump & has his stupid ass bass up extremely loud while puming his gas. I was embarassed for this guy. The mindset is this is "COOL" though. My my my pants down to their knees. I can't believe how stupid some people are. Some are hoarding good supplies and others are hoarding King Cobra 40's and Nike Jordans. There will be pain and there will be suffering. In my town of Vallejo.

Tue, 08/07/2012 - 18:37 | 2686014 disabledvet
disabledvet's picture

Currently we have witnessed the greatest wealth transfer in history in the form of "Germany" his a vis a vis the eurozone. I'll leave it to history to determine if they "earned it." you'd have to be an idiot not to think this wasn't planned tho. The Wall Street thing still looks like an accident to me...indeed in many ways Wall Street has failed this recovery while Main Street has soared during it.

Tue, 08/07/2012 - 18:45 | 2686035 Getting Old Sucks
Getting Old Sucks's picture

My first inclination was to junk you but I'm not sure if you mixed things up.  Please clarify what you are saying?

Tue, 08/07/2012 - 18:43 | 2686023 falak pema
falak pema's picture

All battles today are becoming increasingy violent : When thieves fall out all hell breaks lose. Witness :

London City Bankers: The Attack On Standard Chartered Is An Attack On All Of Us - Business Insider

Ain't that cute?

The City now is gunning for US administration brass hats who think US strategic interests are uber-alles NOT financial banking interests as in this case! 

We seem to be crossing the wires of integrated power play, between MIC and Financial Oligarchical interests! 

Tue, 08/07/2012 - 18:51 | 2686038 magpie
magpie's picture

Watching the Brits handle this should give some cues for the german position after the euro collapse. (For that matter for the Italians as well)

Tue, 08/07/2012 - 18:45 | 2686036 atomicwasted
atomicwasted's picture

It isn't the beginning of the end as much as it's the middle of the end.

Tue, 08/07/2012 - 18:50 | 2686056 hannah
hannah's picture

i call BS...we are closer to the middle of the beginning....or at least the the beginning of the middle.

Wed, 08/08/2012 - 13:03 | 2688088 dvfco
dvfco's picture

Good one.  I wish I had typed that first, but now it's too  played out.  I did get a good laugh out of it though.  We are clearly at a point where the part after the hyphen is -of-the-end, as opposed to anything else.  It's clearly 11:58:30 PM, or later.

Tue, 08/07/2012 - 18:46 | 2686040 hannah
hannah's picture

so tectonic plates cause earthquakes in california and can kill you...well the solution is to move to where they dont have iowa. if inflation and deflation will cause financial earthquakes then it just makes sense to also just move to iowa. buying gold in california will just get you killed in an earthquake per the example in the presentation.....DONT BUY GOLD if you live in california. first move to iowa.

buy gold now so you can be poor later...!


Tue, 08/07/2012 - 19:19 | 2686132 jomama
jomama's picture

fail troll is fail.

Tue, 08/07/2012 - 18:46 | 2686042 Slightly Insane
Slightly Insane's picture

Other countries have failed there currencies (Fiat), however, our problem is that when ours finally ends, that there will be nothing left with which to trade with, other than PM's, and perhaps other valuables, as other currencies will be absent.  My guess is that it will end up in a "bartering" situation on the local level.  What happens to those in commerce, transportation, energy supply, the phones, ecetera.  I wonder what happens to debt (particularly Mortgage debt), and whose hands said property will end up in?  I also expect that a "brand new currency" will be tried by our Government, the question being whether it will indeed "stick", or will it be forced with a "stick".  It will indeed be an interesting time ahead.

Tue, 08/07/2012 - 19:31 | 2686166 Herodotus
Herodotus's picture

Real estate will probably be seized and used for "the common good" in a similar manner as was shown in the scene from Dr. Zhivago when Tonya's family returned to Moscow after the revolution. There will be a "Committee for Public Safety" or other similar organization that will assign living spaces.

Tue, 08/07/2012 - 19:32 | 2686167 magpie
magpie's picture

Wasn't there a 1980s series about a communist takeover of the USA (and i don't mean Red Dawn).

Tue, 08/07/2012 - 22:31 | 2686545 slewie the pi-rat
slewie the pi-rat's picture


oh, wait!  that was T&A of T&A!

Tue, 08/07/2012 - 18:56 | 2686066 moonstears
moonstears's picture

Can't fuckin' eat it! There!

Tue, 08/07/2012 - 19:22 | 2686138 XRAYD
XRAYD's picture

Just in time, the Finacial Times wants you to:

Cash out of gold and send kids to college

 Unsurprisingly, investors are running scared. The global flight to safety has seen capital flood into “core” sovereign bond markets, driving yields down almost to vanishing point.

Yet, despite this perfect storm of financial instability, the gold price remains becalmed. In fact, over the past year gold bullion has behaved like a “risk on” asset, rising and falling in sync with stock markets.  ....

For those who are nervous of financial markets, there exists an obvious alternative. On the numbers, you should cash out of gold, buy a nice house, hire some workers, send your kids to college and eat big breakfasts.







Tue, 08/07/2012 - 19:44 | 2686196 Dr. Gonzo
Dr. Gonzo's picture

I stopped buying gold coins. I'm buying rhodium bars now. they're $300 cheaper than gold and i'm a cheap bastard. 

Wed, 08/08/2012 - 07:29 | 2687047 MillionDollarBoner_
MillionDollarBoner_'s picture

Is there a liquid market for rhodium?

Will it still be liquid after SHTF?

Just wondering...

Tue, 08/07/2012 - 20:07 | 2686256 Dr. Engali
Dr. Engali's picture

Gold Bitchez!



Sheesh I can't believe we are this far along in the cycle and nobody said it.

Tue, 08/07/2012 - 20:25 | 2686296 chump666
chump666's picture

*SSEC hit 3 year lows earlier this mth - only major bourse in region down this yr

China. FMD and we worry about the dumb ass Europeans?

Tue, 08/07/2012 - 21:10 | 2686402 jimod
jimod's picture

Cattle. Invest in cattle.  I'm starting a pastured cow/calf operation and need investors.

You can eat them, and they are harder to steal than gold.  Paper and physical.

There is a ready market for cattle every business day.

Not as portable, but, hey, unless you're already in Costa Rica when the SHTF,

are you going to carry it and your guns and ammunition with you when you walk there?

Nah,  store your wealth in cows, protect it with dogs and bullets.

If you're in the Roanoke VA area and have money to hide......

Wed, 08/08/2012 - 06:42 | 2687001 Haager
Haager's picture

Noone to invest in insects to produce meat-like consumer products?

Tue, 08/07/2012 - 22:07 | 2686505 tradewithdave
tradewithdave's picture

When you record this and then play it backwards it says something like FOFOA or FEKETE, I can't quite make it out.

Tue, 08/07/2012 - 23:31 | 2686645 Neo1
Neo1's picture

The Great Tomato Bubble-how cental banks work

Wed, 08/08/2012 - 05:33 | 2686975 ClassicCommodity
ClassicCommodity's picture

This shit is crazy. It's like i'm living in a real life movie. 

Wed, 08/08/2012 - 10:22 | 2687459 Imminent Collapse
Imminent Collapse's picture

So, nobody really knows how best to prepare, I see.  May I suggest the following:

1.  Stock up with essentials - food, water, toilet paper, etc.  And the food should not be purchased in a supermarket because it will go bad quickly.  Make sure the food has a self life of at least 8 years.

2.  Community will be the most important asset you can have.  Cultivate it.

3.  Land and a garden.  Plan to grow your own food.  You should be anyway.  Go organic and quit eating all the poisons that are being sold to you by big agriculture.

4.  Guns & ammo - not for killing people, but for hunting and, in a last resort, protecting your family.

5.  Gold & Silver.  Yes, some PMs may be important, depending on how bad it gets, but don't put all your assets in them.  Diversify.

6.  Faith.  Junk me if you want, but in the end the mortality rate continues to hover at around 100%.  You won't be here long, so get your head around a spiritual perspective.  Not religion, as it is as corrupted as any other system we have going right now, but a universe view of your life.

Things are going to be bad, but this is just an opportunity to change the patterns that we now live with and to demonstrate to our children what is really important in this life.  And don't worry, it will all work out for the best - in the fullness of time.

Rock on!

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