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Guest Post: 2011 - Catch-22 Year In Review

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Submitted by Jim Quinn of The Burning Platform

2011 - Catch-22 Year In Review

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” - Mark Twain

I published my predictions for 2011 on January 3, 2011 in my article 2011 – The Year of Catch-22. Humans evidently enjoy being embarrassed by how pitiful they are at predicting the future, because we continue to do it year after year. The mainstream media pundits don’t dare look back at their predictions or the predictions of the Wall Street shills that parade on CNBC and get quoted in the Wall Street Journal, eternally predicting 10% to 15% stock market gains. The multi-millionaire Wall Street strategists like the spawn of the squid, Abbey Joseph Cohen, have used all of their Ivy League brain power to predict at least a 10% stock price gain every year since 1999. The S&P 500 stood at 1,272 on January 6, 1999. As of this writing it currently stands at 1,261. ZERO appreciation over the last twelve years.

The Wall Street mantra of stocks for the long run is beginning to get a little stale. If Abbey Joseph Cohen had been right for the last twelve years, the S&P 500 would be 4,000. For this level of accuracy, she is paid millions. Her 2011 prediction of 1,500 only missed by16%. The S&P 500 began the year at 1,258 and hasn’t budged. The lowest prediction from the Wall Street shysters at the outset of the year was 1,333, with the majority between 1,400 and 1,500.

The same Wall Street clowns are now being quoted in the mainstream media predicting a 10% to 15% increase in stock prices in 2012, despite the fact we are headed back into recession, China’s property bubble has burst, and Europe teeters on the brink of dissolution. They lie on behalf of their Too Big To Tell the Truth employers by declaring stocks undervalued, when honest analysts such as Jeremy Grantham, John Hussman and Robert Shiller truthfully report that stocks are overvalued and will provide pitiful returns over the next year and the next decade.

I will take my chances with a few predictions for 2012 after reviewing my lack of foresight regarding 2011. I declared 2011 the year of Catch-22 because no matter what happened, it would not translate into a positive result for the American people. This was my thesis:

The United States and its leaders are stuck in their own Catch 22. They need the economy to improve in order to generate jobs, but the economy can only improve if people have jobs. They need the economy to recover in order to improve our deficit situation, but if the economy really recovers long term interest rates will increase, further depressing the housing market and increasing the interest expense burden for the US, therefore increasing the deficit. A recovering economy would result in more production and consumption, which would result in more oil consumption driving the price above $100 per barrel, therefore depressing the economy. Americans must save for their retirements as 10,000 Baby Boomers turn 65 every day, but if the savings rate goes back to 10%, the economy will collapse due to lack of consumption. Consumer expenditures account for 71% of GDP and need to revert back to 65% for the US to have a balanced sustainable economy, but a reduction in consumer spending will push the US back into recession, reducing tax revenues and increasing deficits. You can see why Catch 22 is the theme for 2011.

My predictions for 2011 were as follows:

  • The first half of 2011 is guaranteed to give the appearance of recovery. The lame-duck Congress ”compromise” will pump hundreds of billions of borrowed dollars into the economy. The continuation of unemployment benefits for 99 weeks (supposedly to help employment) and the 2% payroll tax cut will goose consumer spending. Ben Bernanke and his QE2 stimulus for poor Wall Street bankers is pumping $75 billion per month ($3 to $4 billion per day) directly into the stock market. Since Ben gave Wall Street the all clear signal in late August, the NASDAQ has soared 25%. Despite the fact that there are 362,000 less Americans employed than were employed in August 2010, the mainstream media will continue to tout the jobs recovery. The goal of all these efforts is to boost confidence and spending. Everything being done by those in power has the seeds of its own destruction built in. The Catch 22 will assert itself in the 2nd half of 2011.

The payroll tax cut, extension of unemployment benefits and Bernanke’s gift to Wall Street criminal banks did nothing to help real Americans in the real world. The government manipulated GDP has languished between 0.4% and 1.8% in the first three quarters of 2011. Using a true measure of inflation, as detailed by John Williams at www.shadowstats.com, GDP has remained at a recessionary level of -2% to -3%.

Easy Ben accomplished his goal of pumping up the stock market with his QE2 gift to Wall Street bankers during the first six months of 2011, with the S&P 500 peaking at 1,364 in late April. The market began to fall the second Ben stopped handing Jamie Dimon and his friends $4 billion per day, with the market dropping 18% in three months. The market has risen back near the breakeven level for the year based on Ben’s promise to keep interest rates at zero forever and the hope of QE3.

  • A new perfect storm is brewing for housing in 2011 and will not subside until late 2012. You may have thought those bad mortgages had been all written off. You would be wrong. There will be in excess of $200 billion of adjustable rate mortgages that reset between 2011 and 2012, with in excess of $125 billion being the dreaded Alt-A mortgages. This is a recipe for millions of new foreclosures.

The brainless twits on CNBC will dutifully report the number of completed foreclosure sales plunged by 24% in 2011, giving the impression to their non-critical thinking viewership that all is well on the housing front. What they will fail to point out is that the number of foreclosures in process went up in 2011 and now stands 59% ABOVE the level in 2009 at the height of our recession. The reason that completed foreclosures have fallen is twofold. The criminal Wall Street banks can’t prove they hold the mortgage notes on hundreds of thousands of homes and they have a few legal issues related to the massive robo-signing fraud they committed. Kicking old ladies and Iraq War veterans out into the street using fraudulent documentation has caused the Wall Street Too Evil To Believe Banks some public relations issues. Secondly, the Wall Street Plutocrats have these mortgage loans valued at 100% on their balance sheets due to the FASB gift of mark to fantasy accounting rules. Foreclosing actually reveals their assets to be overvalued by at least 50%. This may explain why millions of Americans are still in their homes after not making a mortgage payment for two years, as detailed by economist Tom Lawler:

Given the number of loans either seriously delinquent or in the process of foreclosure at the beginning of the year, the number of completed foreclosure sales in 2011 is almost absurdly low, reflecting the complete screw-up of the mortgage servicing industry, and the resulting dramatic slowdown in foreclosure resolutions. As of the end of October, 2011 LPS estimated that there were 1.759 million seriously delinquent loans with the average number of days delinquent at 388 (compared to 192 days in January 2008), and there were 2.210 million loans in the foreclosure process that had been on average delinquent for 631 days.

Completed Foreclosure Sales And Short Sales/DILs (thousands, estimates)
  2008 2009 2010 2011(E)
Completed Foreclosure Sales 914 949 1,070 815
Owner-occupied N.A. N.A. 785 608
Non-owner-occupied N.A. N.A. 285 207
Short Sales/DILs 105 270 354 380
Foreclosures plus Short Sales/DILs 1,019 1,219 1,424 1,195
Outstanding first liens: Jan-08 Jan-09 Jan-10 Jan-11
Seriously Delinquent (90+) 1,016 1,983 3,061 2,168
In Process of Foreclosure 860 1,386 2,110 2,203
 
The concerted effort to not complete foreclosures did nothing to slow the continued descent in home prices. As you can see in the chart below from http://www.calculatedriskblog.com/, real home prices will have fallen another 5% in 2011. Obama and his minions threw $50 billion of your tax dollars at the housing market in 2009 – 2010 with tax credits, loan modification programs, homebuilder tax loss carry-backs, and a myriad of other Keynesian claptrap solutions. They succeeded in pissing your tax dollars down the toilet as prices have declined another 12% in the last 18 months. Prices have fallen 42% nationally since 2006. I wonder who missed the boat on that development?
 
“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit.” – Ben Bernanke – July 2005
 
 

There are approximately 48.5 million homes with mortgages in the United States and 10.7 million of them have negative equity. Another 2.4 million have less than 5% equity. Considering it costs more than 5% in closing costs to sell a house that means 27% of home occupiers with a mortgage are trapped like rats in a cage. With 2.2 million foreclosures still in the pipeline and a looming recession, home prices will continue to fall another 10% to 20% over the next two years and one third of all home occupiers will be underwater. That sounds like a recipe for 10% to 15% stock market gains.

  • Quantitative easing has benefited only Wall Street bankers and the 1% wealthiest Americans. The $1.4 trillion of toxic mortgage backed securities on The Fed’s balance sheet are worth less than $700 billion. How will they unload this toxic waste? The Treasuries they have bought drop in value as interest rates rise. Quantitative easing’s Catch 22 is that it can never be unwound without destroying the Fed and the US economy.

Bennie and his Inkjets did a bang up job in 2011. He was able to expand his balance sheet from $2.47 trillion to $2.95 trillion in twelve short months. According to Ben and his Federal Reserve friends, increasing your balance sheet by $480 billion isn’t really printing money out of thin air and handing it to their Wall Street owners for free, so they can prop up the stock market and enrich their executives. Ben is now leveraged 57 to 1. He should move to Europe, where this level of leverage is commonplace. In comparison, Lehman Brothers and Bear Stearns were leveraged 40 to 1 when they went belly up.

There is absolutely no way that Ben Bernanke could ever reduce the Federal Reserve balance sheet to the pre-crisis level without destroying the U.S. economy. He knows that and will never sell off those toxic mortgage assets. Not only won’t he reduce the Fed balance sheet, but by mid-2012 he will institute QE3 and buy another $600 billion of mortgage debt. His hubris knows no bounds, as his reckless illegal actions thus far have not driven interest rates sky high – YET. He has only destroyed the finances of senior citizens, savers and people who eat food and use gasoline. He will surely go down in history, but not the way he envisions.

  • The rise in oil to $91 a barrel will not be a top. The Catch-22 of a declining dollar is that prices of all imported goods go up. If the dollar falls another 10%, the price of oil will rise above $120 a barrel and push the economy back into recession.

As Bernanke printed like a drunken sailor during the first six months of 2011, the USD fell by 9% and the price of oil did exactly as expected, rising to a peak above $125. The NATO “intervention” in Libya also added a few bucks to the price of a barrel of sweet crude.

DXY

One-Year Chart for DOLLAR INDEX SPOT (DXY:IND)

The complete implosion of Europe and the ensuing weakness of the Euro have given the false impression that the U.S. dollar is a safe haven. The USD has regained its losses and will end the year exactly as it started versus a Euro heavy basket of world currencies. With annual deficits equaling 10% of GDP, a national debt now exceeding 100% of GDP, and Ben Bernanke in perpetual printing mode, the USD is destined to reach its intrinsic value of zero. With Brent crude still above $108 a barrel, employment still weak, and double digit food and energy inflation slowing consumer spending, the ECRI knows a recession during 2012 is baked in the cake.

 

  • The imminent collapse of the European Union as Greece, Ireland, Portugal and Spain are effectively bankrupt. Spain is the size of the other three countries combined and has a 20% unemployment rate. The Germans are losing patience with these spendthrift countries. Debt does matter.

It seems I was wrong about Europe. It turned out to be much worse than anyone envisioned, with Italy now the likely fuse that blows the whole thing sky high. The ECB has made Ben Bernanke look like a lightweight by increasing their balance sheet by 44% to over $3.5 trillion in a futile effort to solve a debt crisis with more debt. It seems central bankers are programmed to print until the very end (see Weimar). The European Union will not survive 2012. Too many countries, too much government debt, too many zombie banks, too many bureaucrats, too much austerity rammed down the throats of citizens, and not enough honesty or reality based solutions.

  • State and local governments were able to put off hard choices for another year, as Washington DC handed out hundreds of billions in pork. California will have a $19 billion budget deficit; Illinois will have a $17 billion budget deficit; New Jersey will have a $10.5 billion budget deficit; New York will have a $9 billion budget deficit. A US Congress filled with Tea Party newcomers will refuse to bailout these spendthrift states. Substantial government employee layoffs are a lock.

State and local governments have laid off 535,000 workers since 2008. With borrowed Federal government stimulus handouts evaporating into thin air during 2011 – 2012, this total will reach 800,000 by the end of the next year. The U.S. Postal Service will do their part by cutting 28,000 jobs in 2012, even though they need to cut 100,000. States and municipalities based their budgets on the revenues produced by the fake debt driven housing boom from 2003 – 2007. The tax revenue dried up, but the union jobs added are a gift that keeps on costing taxpayers billions. States and localities can’t print, so layoffs will continue.

  • There is a growing probability that China will experience a hard landing as their own quantitative easing has resulted in inflation surging to a 28 month high of 5.1%, with food inflation skyrocketing to 11.7%. Poor families spend up to half of their income on food. Rapidly rising prices severely burden poor people and can spark civil unrest if too many of them can’t afford food.

According to official government statistics China’s economy continued to boom in 2011. But, of course Chinese government reports make the BLS look honest. The fact is the Chinese stock market has fallen 28% since April as the property bubble deflates. If their economy has truly grown at an annual rate of 8% to 10% over the last five years, why is their stock market down 62% from its 2007 high?

SHANGHAI INDEX

One-Year Chart for Shanghai Stock Exchange Composite Index (SHCOMP:IND)

The price inflation in food and energy prices, along with the property bubble bursting has led to breakouts of civil unrest across China. China’s two biggest markets – Europe & the United States – are in or near recession and are buying less of their crap. They can only build so many vacant cities and shopping malls to create the appearance of growth. The hard landing is about to get harder in 2012.

  • The Tea Party members of Congress are likely to cause as much trouble for Republicans as Democrats. If they decide to make a stand on raising the debt ceiling early in 2011, all hell could break loose in the debt and stock markets.

It seems I got the timing wrong on this prediction, but the August showdown was a doozy. The threat of a government shutdown resulted in the stock market collapsing by 18% in a matter of weeks in August. Our beloved politicians then came up with another bullshit non-solution by creating a commission which, after months of negotiations, failed to do anything. The $1.2 trillion of automatic spending cuts will never happen. The slime that inhabit the hallowed halls of Congress will pretend to cut, while actually increasing spending. And so it goes. The stock market has risen from its October low based on Easy Ben’s assurances to keep interest rates at zero forever and the anticipation of QE3 in the new year.

  • Will the consensus forecast of a growing economy, rising corporate profits, 10% to 15% stock market gains, 2 million new jobs, and a housing recovery come true in 2011? No it will not. By mid-year confidence in Ben’s master plan will wane.

Corporate profits did rise, mostly due to Ben Bernanke providing free money to the Wall Street Mega-Banks so they could generate risk free profits on the backs of senior citizens getting .15% on their savings. It also helps when the same Wall Street banks can make accounting entries declaring that future loan losses will be minimal and the toxic mortgages on their books aren’t really worthless. Who knew accountants could do so much for America? Abbey Joseph Cohen only missed her stock market projection by a smidgeon. The S&P 500 is essentially unchanged for the year, while the NASDAQ and Russell 2000 will finish in the red.

The country did not add 2 million new jobs. It added 1.4 to 1.5 new jobs. Too bad the working age population went up by 1.7 million people. But our friends at the BLS, when they aren’t manipulating away the inflation that real people in the real world experience every day, have the gall to declare the unemployment rate has fallen from 9.8% to 8.6% in the last twelve months. How could this be you might ask, since the working age population went up by more than the number of people who found jobs. Easy if you are a BLS government drone. Everyone knows that things are so good out in the real world that 1.8 million Americans decided to kick back and enjoy the good life by leaving the workforce. It wasn’t because they gave up looking for the jobs that were shipped to the Far East by the mega-corporations making record profits and paying record bonuses to their executives. It’s just a rumor that those long lines at food banks around the country have a few of these “lucky” non-members of the workforce in them.

The housing recovery is just around the corner. Larry Yun, chief liar for the National Association of Realtors, assures us that it’s the best time to buy. We all know that the NAR is a bastion of honesty and truth. Just because they reported 3 MILLION more home sales than actually occurred between 2007 and 2010, you can’t scorn, ignore and treat everything they say as a bald faced lie. If Larry says the housing recovery has arrived, it must be true.

  Revised Previous % Change
2007 5,022,000 5,652,000 -11.1%
2008 4,124,000 4,913,000 -16.1%
2009 4,334,000 5,156,000 -15.9%
2010 4,182,000 4,907,000 -14.8%

When the pundits on CNBC sum up the year, they will not be touting the fact that gasoline prices went up 10% in the past year and the average price for a gallon of gas was the highest in U.S. history. They will not be proclaiming that even the government manipulated CPI shows food prices up 6% and clothing prices up 5% in the last year. I’m sure glad Ben Bernanke doesn’t see any inflation on his radar. Maybe he should ask his chauffer about his inflation. Lastly, the stocks for the long run crowd will not be yakking about the fact that gold finished up 10% for the year and has been up for TEN consecutive years. I wonder whether the numbskulls on CNBC can look at the chart below and figure out why gold is up ten years in a row. The national debt reaching $20 trillion by 2015 is a given. I wonder whether the price of gold will be higher. Maybe I’ll give Abbey Joseph Cohen a call and ask for her prediction.

Overall, my assessment of what would happen in 2011 wasn’t too far off. But, it was the things that I and virtually everyone on the planet missed that will reverberate in 2012 and for the next ten years. Our 20 year Crisis deepened, became more violent, and clearly revealed that the establishment will use all their power to put down protests and crush opposition to their corrupt crony capitalistic policies. The major developments I missed regarding 2011 included:

  • The self-immolation of a young Tunisian man set off revolutions around the globe, toppling U.S. supported dictators in Tunisia and Egypt. Dictators attempted to retain power by killing citizens by the thousands. The self-immolation of a man in New Hampshire in front of a courthouse was completely ignored by the mainstream media. I wonder why.
  • The Arab Spring has resulted in revolutions in Yemen, Bahrain, Syria and Libya. Depending upon how much oil was at stake, the U.S. has supported the dictator or the people whenever it suited them. This is called democratic principles.
  • Young people across the U.S. were inspired by the Arab Spring and began to Occupy Wall Street and many other streets in 97 other U.S. cities this past Fall. The spirit of these protests was against Wall Street criminality, Washington corruption, and corporate malfeasance. Peaceful civil disobedience by citizens of this country was met with beatings, tear gas, mass arrests and bulldozing their encampments. Students were maced while sitting in front of a college building. Ultimately a Department of Homeland Security coordinated attack on all the protests squashed the movement. The American people were too distracted by Dancing With the Stars and the latest iGadget to notice. The corporate media did their part by spewing misinformation and propaganda about the Occupy Movement, while the Wall Street Elite giggled with delight from their NYC penthouse suites.
  • Shockingly, no bankers were prosecuted despite clear unequivocal evidence of the greatest financial fraud in world history. The former head of Goldman Sachs, U.S. Senator, and NJ Governor continues to eat caviar and drink champagne in his glorious mansion after stealing $1.2 billion directly from customers’ accounts. These funds now reside in the pocket of Jamie Dimon and his upstanding JP Morgan institution.
  • The Federal government methodically moved closer to a totalitarian regime by passing legislation that will enable them to imprison U.S. citizens without charges. The only remaining area that has allowed critical thinking Americans to find the truth – the Internet – is on the verge of being locked down by the Feds. Pending legislation will allow them to shut down any website that may inconvenience their agenda. We inch ever closer to Orwell’s vision of the future.
  • No one in the MSM or government anticipated that the only truthful, honest, forthright politician in Washington D.C. – Ron Paul – could possibly win the Iowa caucus. His message of freedom, liberty, self reliance, and non-interventionism has struck a chord with young people and those capable of distinguishing between MSM propaganda and reality. The establishment is terrified of Ron Paul and is now on a mission to destroy him. What they don’t realize is their time is coming to an end. The existing social order will be swept away in a violent manner. The youth of this country will lead the charge. 2012 should be a real doozy.

I’ll take another shot at predicting the unpredictable with my next article: 2012 – The Year of Living Dangerously.

 

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Fri, 12/30/2011 - 20:15 | 2022878 DavidPierre
DavidPierre's picture

All your bullshit charts and graphs are meaningless.

Maybe your time would be better spent understanding that 9/11 was an an ameriKlan planned and executed terrorist action.  Whatever you go on and on about is useless drivel.  Please stop aiding and abetting the Nazis that control your feeble mind and your fascist nation.

 

 

 

Fri, 12/30/2011 - 20:20 | 2022891 tarsubil
tarsubil's picture

I guess that is one way to cope. See it all as an elaborate plan conducted by super evil geniuses. If only we were so lucky!

Fri, 12/30/2011 - 20:30 | 2022917 Hugh G Rection
Hugh G Rection's picture

Bilderberg is no conspiracy theory, and we aren't lucky.

Fri, 12/30/2011 - 21:16 | 2022993 AldousHuxley
AldousHuxley's picture

you are lucky that you were not born in North Korea.

 

North Korean labor camps for 40+ males in RUSSIA.

 

http://www.vice.com/vice-news/north-korean-labor-camps-full-length

Fri, 12/30/2011 - 21:37 | 2023011 Canaduh
Canaduh's picture

Yes, son, you should be happy you only have to suck my cock. Little Timmy down the street, his dad fucks him in the ass every night. You wouldn't want to move in with Timmy, would you son?? No?? Then start sucking.

(Comparing bad to worse does not negate the bad)

http://www.nizkor.org/features/fallacies/

Fri, 12/30/2011 - 22:24 | 2023097 Reese Bobby
Reese Bobby's picture

Don't be ashamed of being gay sunshine.  We heterosexuals do not hate you.  Hugs.

Sat, 12/31/2011 - 00:06 | 2023194 Canaduh
Canaduh's picture

Brilliant retort.

Sat, 12/31/2011 - 00:48 | 2023230 AldousHuxley
AldousHuxley's picture

if the son is gay and his old man is not, then who is fucking whom?

 

 

Fri, 12/30/2011 - 22:15 | 2023083 Reese Bobby
Reese Bobby's picture

What a great link!  Thanks.

Please ignore the lost racists who haunt ZH.

They are the most unfortunate combination of loud and stupid.

God Bless.

Sat, 12/31/2011 - 01:27 | 2023261 Platypi4Lyfe
Platypi4Lyfe's picture

So are you ever going to answer a question you psychotic coward?

Fri, 12/30/2011 - 22:02 | 2023070 economics1996
economics1996's picture

Great guest post.  Very well done.

Fri, 12/30/2011 - 22:47 | 2023123 Havana White
Havana White's picture

Yep.  Outstanding

 

 

Sat, 12/31/2011 - 02:10 | 2023297 Thomas
Sat, 12/31/2011 - 10:45 | 2023507 el Gallinazo
el Gallinazo's picture

Of course Bilderberg is a conspiracy theory.  Look up "conspìracy" and "theory" in the dictionary.  It just happens to be true, like many other conspiracy theories.  One which isn't true is the federally sponsored boxcutter conspiracy theory.

Fri, 12/30/2011 - 23:38 | 2023156 centerline
centerline's picture

I would wager the truth lies somewhere between the obsurd and what you are told.  Not saying I take a particular position on any particular event; but, I have been around long enough to learn that what we see and hear about world events is at best a narrow perspective of what really happened.

Think for a moment about all the things you were taught about events in world history as a child.  In retrospect how unclear and incomplete they seem now that you are older and wiser.  And when you start searching for those answers, you find the only that a rabbit hole exists.  You try to look down that hole, but find it difficult to see.  Nevertheless, the presence of the hole itself challenges the validity of the truth you were sold (err... told).  Remember, history is written only by the victors (and is amended over time accordingly).  Be careful claiming any sense of truth.

 

Sat, 12/31/2011 - 00:37 | 2023223 Oh regional Indian
Oh regional Indian's picture

Well said all around Centerline. 

The system is very well "crafted". The whole nurture part of nature/nurture is quite completely controlled. And to the victor goes the history pen, eh?

Pulling our own blinders off, one post a t a time! :-)

Here is a warm wish to all the snow-bound folks in the world, 1st, 2nd or 3rd.

Hug a neighbour. 

ori

/the-plan/

Sat, 12/31/2011 - 00:49 | 2023231 Arkadaba
Arkadaba's picture

Centerline, very much the way I approach things these days.

Sat, 12/31/2011 - 11:07 | 2023526 cossack55
cossack55's picture

As Orwell so succinctly stated it;

He who contols the present, controls the past. He who controls the past, controls the future.

Sat, 12/31/2011 - 11:11 | 2023532 duo
duo's picture

My 1961 World Book Encyclopedia says that Kenya wasn't a country back then.  It was a colony of Britain.

Fri, 12/30/2011 - 20:21 | 2022893 Jim Quinn
Jim Quinn's picture

Back to the barn traitor. The sheep are waiting.

Fri, 12/30/2011 - 21:00 | 2022930 DavidPierre
DavidPierre's picture

SmokeyQuinn:

I see that your obsession with beastility and chart porn has not abated and that you continue to aid and abet your homegrown Nazi Terrorists in their quest for world domination.

Your smoke and mirrors of manipulated economic graphics and stupid political gaffs are just more chaff to confuse and distract.

Time is running out for moronic people like you.

"Eventually investors and even the public might come to understand that great power, the power to control the prices of all capital, labor, goods, and services in the world -- that is, the power to control the price of everything, absolute power -- was being exercised in secret so that the world more easily might be expropriated, that democracy had been crushed, and that, as a mere high school graduate remarked a few years ago,

"There are no markets anymore, only interventions."

Fri, 12/30/2011 - 21:27 | 2023017 Jim Quinn
Jim Quinn's picture

David Pierre performing

http://www.youtube.com/watch?v=1tqxzWdKKu8

American traitor.

 

Fri, 12/30/2011 - 22:18 | 2023088 DavidPierre
DavidPierre's picture

American Traitor Goes Down

http://www.youtube.com/watch?v=qtuTUsDd6gk&feature=related

Hey... there people I'm SmokeyQuinn

Here... I am a accountant at Wharton Business School

I'm dressin' sharp and acting cool

I got a cheerleader who wants to help with my ZH papers

Let her do all the work... later I'll rape her

I'm got a good job and will be real rich

Oh God... I am the ameriKlan dream

But now I smell like vaseline

 

 

 

 

Sat, 12/31/2011 - 00:54 | 2023234 Arkadaba
Arkadaba's picture

I've seen you two guys beating each other up for over a year on these forums (and once accidentally got sucked in). Guess what - WE DON'T CARE - deal with it, grow up or go home.

Sat, 12/31/2011 - 01:32 | 2023264 Platypi4Lyfe
Platypi4Lyfe's picture

A year?? There's no eject button for xenophobes and lunatics like ever? No wonder its so crowded in here. Time to thin the herd.

Sun, 01/01/2012 - 13:49 | 2024745 DeadFred
DeadFred's picture

Sometimes Darwin is so slow!

Sat, 12/31/2011 - 10:18 | 2023486 bigerny
bigerny's picture

Oh,I think it's rather fun to watch.Sort of like mud wrestling but without the fun costume malfunctions.

Sat, 12/31/2011 - 01:50 | 2023280 Uncle Remus
Uncle Remus's picture

Bobby? Bobby Brown - is that you?

Sat, 12/31/2011 - 10:46 | 2023505 Jim Quinn
Jim Quinn's picture

David Pierre (hysterical that you took this name as it was a derogatory joke applied to a moron on The Burning Platform)

Breaking news. Jimmy Carter pardoned all you yellow bellies back in the late 1970's. All you cowards were free to come back to the U.S.

But you chose to stay hidden in the backwoods of Canada, hating America and rationalizing your pathetic life by praying for America's destruction. Your hero is Ted Kowzinski. You want to be just like him. How are your anthrax experiments going?

What a sad excuse for a human being you have turned out to be. Filled with hate and loathing for the country you deserted. You are truly the scum of the earth.

Please cut and paste someone else's words because we know you are incapable of writing a complete coherent sentence on your own.

 

Sat, 12/31/2011 - 17:13 | 2023935 DavidPierre
DavidPierre's picture

Best your prepare your three sons to be the new wave of...

Toy Soldiers

 According to recent news accounts, shattered and shredded body parts and remains of U.S. servicemen were found in a landfill.

 

Despite political spins, this sobering image is a telling, true-life metaphor for what those in power really think of soldiers, many of whom are but boys and girls freshly loosed from High School.

 

In recent years, politicians, especially when on TV or radio talk shows, are apt to say, when addressing a vet, "I thank you for your service." In truth, this is robot-talk, kind of like when a parrot is trained to say, "Hello!", and about as meaningful.

 

The American poet, e.e. cummings once said, " A politician is an arse upon which everyone has sat, except a man." John Africa said, "A politician will tell you he wasn't born of a woman, if it'll get you to vote for him."

 

In these passing years, since 9/11, wars have been fought that have devastated countries, economies, and world peace. Untold thousands have died, many for nothing more, nor less, than American paranoia. Thousands of U.S. soldiers have died defending American lies.

 

And tens of thousands have returned, bodies, minds, souls shattered by political calculations driven by arrogance, greed and sheer stupidity. Thousands of marriages have ended in divorce because of forced years apart, and families have been broken asunder because some greasy politician wanted to play 'War-President' (or Senator, or Representative.)

 

In a real sense, military body parts tossed into landfills as trash, is more than metaphor.

 

It is truth.

Sat, 12/31/2011 - 17:45 | 2023971 traderjoe
traderjoe's picture

Jim Quinn says "what a sad excuse for a human being..."

How dare you judge - lest you be judged accordingly.

What ugly words...

Sun, 01/01/2012 - 12:39 | 2024647 Jim Quinn
Jim Quinn's picture

David Pierre is a lowlife troll that spammed my website for months with his cut and paste nutjob bullshit. Don't tell me whether I can judge someone based upon their actions and words.

How dare you. LOL!!!!!!

Like you aren't judging me. Grow up.

 

Mon, 01/02/2012 - 01:36 | 2025975 traderjoe
traderjoe's picture

Well, actually I was giving you the benefit of the doubt. But I guess I learned that you don't deserve that. That maybe YOU are the bitter one. It's just a website and maybe you should have just kicked him out.

But I certainly don't think anyone - other than the true villians - deserves those sorts of words. I can skip your articles now. Thanks.

Mon, 01/02/2012 - 02:29 | 2026008 Platypi4Lyfe
Platypi4Lyfe's picture

3 man Daisy Chain now

Poncho? Goggles? Chapstick?

Sat, 12/31/2011 - 14:51 | 2023764 Sancho Ponzi
Sancho Ponzi's picture

DavidPierre, you said:

'I am a accountant'

It's I am an accountant, not a accountant. What a dope.

Sat, 12/31/2011 - 03:21 | 2023352 Hugh G Rection
Hugh G Rection's picture

Sorry Jim. Not sure what started the back and forth with DP, but if you are a 9/11 denier then you are going to have a tough time in an open and honest venue like ZH.

There are two types of people that still believe the governments account of 9/11.  The lazy useless eaters that have the cognitive ability of a retarded chimpanzee, and the intellectually dishonest, that are not able to face hard realities.

I think you fall under the latter.  In my experience, people with a large stake in the system, a comfortable lifestyle, children, and a vested interest in maintaining the status quo, will refuse to face facts no matter how obvious they may be.  There are few empirical minded intelectuals that will accept new information about something so polarizing, and completely change their paradigm.  Unfortunately most people are wishful thinkers, and will continue to believe in Santa Claus, no matter how much evidence is presented to them.

Sat, 12/31/2011 - 16:59 | 2023930 d_senti
d_senti's picture

Note, however, that not believing the government's version of events is not equivalent to believing it was an inside job. I don't believe the govt account in quite a few ways, but I have not been convinced that it was an inside job.

And to preempt you, I'm not so delusional as to think they aren't CAPABLE of doing such a thing; I just don't think the evidence is convincing. Honest, rational people really can disagree. Once you cut out the "the govt would never lie to us" crowd, there's room for rational debate.

Sun, 01/01/2012 - 11:57 | 2024588 DaveyJones
DaveyJones's picture

After all, once you have eliminated everything that is impossible, whatever is left, no matter how improbable, must be the truth - Holmes

I think that logic is a sub category of the denier. Once you analyze the events, the defense systems involved, the preparation required, the flight exercises occuring that day, the motives, and most important, the government's  response, there is no other conclusion

Sun, 01/01/2012 - 14:08 | 2024786 DeadFred
DeadFred's picture

The 9/11 argument reminds me too much of the left/right fight between Fox and CNN. Focusing attention on two sides to avoid the other possible explanations? Accepting that one position does not mean the other side is correct. I'm waiting for door number three to be opened.

Fri, 12/30/2011 - 20:27 | 2022913 Hugh G Rection
Hugh G Rection's picture

DP-

Most of us in America will eat a shit sandwich if it's wrapped in an American flag.  The evidence is there for everyone to see, but it's easier to ignore something difficult and focus on where their penis is going to be stuffed next, or which ball game watch.

 

The Illuminati's quiet war went hot on 9/11, and they are well on the way stealing ALL our rights, NDAA being their latest victory.  Maybe they are right that most people are stupid, tribal beasts of burden to be divided and conquered.  Maybe i'm more cynical than usual, but just had my 2nd worst Christmas ever, and had little luck with reaching idiot family members.

 

I sincerely hope the NWO can be stopped, and the criminal elite will all be prosecuted for their myriad of crimes (including 9/11).  It feels like they are planning another world war, started in Iran, to draw Russia and China into the fray.

Fri, 12/30/2011 - 23:29 | 2023143 centerline
centerline's picture

Sorry to hear about the bad holiday.  And yes, most people cannot be saved.  The programming is too strong.  I wish I could say that I really have given up... but I still try in vain at times to shake sense into family.  Some glaze over.  Most have the same rejection "response."

NWO cant be stopped.  It is human nature.  But, NWO changes hands from time to time and the previous gang gets hung.  Karma still works.  Just on longer timeframes.

Here's to hoping that our new masters appreciate us more than the last masters!  LOL.

Sat, 12/31/2011 - 00:17 | 2023202 LowProfile
LowProfile's picture

"NWO cant be stopped."

Now, who would we expect to spread THAT meme?

Hmm...

Sat, 12/31/2011 - 08:30 | 2023441 Ima anal sphincter
Ima anal sphincter's picture

+ 100 Very nice observation.

Sat, 12/31/2011 - 11:03 | 2023521 centerline
centerline's picture

Not sure I followed that one!

But, to be safe...

 I would add that what I meant is that there will always be some sort of egomaniac, alpha mentality sort of person / family / group / etc. that tries to dominate the world (or at least a good chunk of it).  Just human nature.  History repeating itself over and over in this regard.  Should this NWO bunch get booted off the planet, another batch will pop up to take thier place.

Fri, 12/30/2011 - 23:44 | 2023165 DavidPierre
DavidPierre's picture

"Like a boil that can never be cured so long as it is covered up, but must be opened with all its ugliness to the natural medicines of air and light, injustice must be exposed, with all the tension its exposure creates, to the light of human conscience and the air of national opinion before it can be cured."  \

9/11, is a "big boil" that needs lancing.

46 military exercises and hijack drills called things like 'Vigilant Guardian', that were actually taking place on the morning of September 11. The greatest density of drills in US military history.

Fake radar blips, dummy hijacks, dummy attacks, fighter jets sent off to Turkey, the skies left unprotected, with the FBI's top anti-terror experts stuck on a training exercise in California. The drills were important, because not only did they weaken and confuse US air defence, but there was also a military drill for each major component of the 9/11 attacks.

 The drills were cover, and the dummy threats were made real.

September 11, was a coup carried out by a rogue network within the US military and government.

 A cabal of fascists, working with and for the banking oligarchy, the old boys of Wall Street.

Blame Saudi Arabia, Iraq, or Pakistan or Afganistan? You can't. There isn't the evidence. The evidence points towards 9/11 as a false flag attack, carried out by a high level clique, that forced a Shocked and Awe struck US public into a vast and still ongoing illegal wars complete with ongoing economic and financial pillage.

It was America's very own Reichstag fire. And the official version of the event? A racist, militaristic, and fascist myth that we must reject.

One million dead, 4 million displaced, and that's a victory?  The failure of AmeriKlans to comprehend the scale of the destruction wrought under their bloody swastika flag as nothing less than racist.

ameriKlans are very good at segregating their crocodile  tears.

http://www.globalresearch.ca/index.php?context=va&aid=26529 

Sat, 12/31/2011 - 00:27 | 2023214 Hugh G Rection
Hugh G Rection's picture

Concise and articulate explanation.

To be honest I was initially caught up in the kneejerk racism, "hoorah lets get dem ragheads! USA, USA, USA!". Now I am embarassed of the neocon asshole I used to be.  It took me years to realize we no longer have representatives in DC, we have lobby whore politicians that serve the multinational corporations and the banking cartel. 

It's funny how ethnocentric xenophobia is encouraged towards Muslims.. but ask about Mossad involvement in 9/11 and you are a KKK antisemite militia fundamentalist nutcase.

 

NWO delenda est

Sat, 12/31/2011 - 12:18 | 2023593 General Decline
General Decline's picture

So... If the top FBI top terror experts were stuck in California that day, I would think they would be bright enough to see that it was by design. Perhaps these type of people (high level, skilled intelligence that were intentionally kept far away from the events that day) are the ones that would have the best chance at upsetting the illumnati's plans?

Sat, 12/31/2011 - 02:41 | 2023320 Freddie
Freddie's picture

Dumb morons in America brainwashed by TV and Hollywood 24x7.  If you switch on the Tv then you enpower and enable them to be your overlords.  Keep up the good work.

Sat, 12/31/2011 - 02:45 | 2023324 Platypi4Lyfe
Platypi4Lyfe's picture

But I like watching Ellen

Sat, 12/31/2011 - 02:47 | 2023327 Platypi4Lyfe
Platypi4Lyfe's picture

And I suppose TV in your world is worse than religion..

Denogginator for you for +1ing yourself.

Sat, 12/31/2011 - 08:39 | 2023444 Ima anal sphincter
Ima anal sphincter's picture

If you switch on the TV then you empower and enable them to be your overlords.

Profound and accurate statement. My reply "I don't and they aren't."

They are my enemy. They are mankind's enemy. They represent everything evil.

They must be stopped.

Sat, 12/31/2011 - 23:23 | 2024262 Platypi4Lyfe
Platypi4Lyfe's picture

Auburn 37 Virginia 24, end of 3rd in case you were wondering

Sat, 12/31/2011 - 11:18 | 2023539 duo
duo's picture

The NWO didn't count on the internet being so widely available to spread alternative "truths". Just like how the printing press marked the eventual end of the Catholic Church's and monarchies's rule over men.

That is why the web must be shut down.

Fri, 12/30/2011 - 20:57 | 2022969 Central Bankster
Central Bankster's picture

You lose your pills?

Sat, 12/31/2011 - 10:54 | 2023514 Big Slick
Big Slick's picture

"You lose your pills?"

Doc doesn't know, but I find that cutting mine in half helps

Sat, 12/31/2011 - 04:32 | 2023376 malek
malek's picture

Thank you for demonstrating your stupidity so clearly.

Fri, 12/30/2011 - 20:13 | 2022883 patience...
patience...'s picture

Here's my prediction -

Manufacturing isn't coming back for a long time.

EndGame.

Fri, 12/30/2011 - 20:22 | 2022896 cossack55
cossack55's picture

If I may add mine:

The leader of OccupyWhiteHouse will receive the balance of the debt limit funds ($1.2 trillion) which is to carry the US to 2013 and they will be gone by October 2012.  This will put the Repubs into either raising it again and being voted out, or shut down the Gestapo goobermint.  Has the goobermint ever been shut down during a general election?  Can't wait for that fun to begin.

Fri, 12/30/2011 - 21:09 | 2022986 CrashisOptimistic
CrashisOptimistic's picture

Geithner can raid the retirement fund again.  They will stretch it, even with the payroll tax cut extended.

About all that could stop it would be a GDP smash that takes down the tax revenue numbers.  That could overwhelm Timmy Turbotax.

Or . . . arrival of the bond vigilantes.

 

Fri, 12/30/2011 - 22:48 | 2023126 nmewn
nmewn's picture

I dunno...its pretty clear to me the market has been corrupted from one end to the other.

With governments issuing debt that can never be repaid (even in several lifetimes) to central banks who can issue themselves the money to purchase it from out of thin air...there can be no bond vigilantes now as we have always known them...in my view.

No one has those numbers, real or imagined. Governments included.

They are in essence issuing non-backed paper bought with fabricated money. The debt is worthless on any timeline progression and the destruction of major currencies used to buy it all show it.

Its simply state counterfeiting now. Just because its legal doesn't make it right or justified...but it is what it is.

Sat, 12/31/2011 - 11:09 | 2023529 rbg81
rbg81's picture

Excellent post--absolutely true and succintly stated.  Central banks have marginalized the "Bond Vigilantes".  And if that weren't enough, they would probably be charged under anti-terrorism or treason laws.  And that goes for the Ratings Agency execs too.

Sun, 01/01/2012 - 09:38 | 2024497 nmewn
nmewn's picture

"And if that weren't enough, they would probably be charged under anti-terrorism or treason laws. And that goes for the Ratings Agency execs too."

lol...it happened to a certain extent in Italy.

"As stock and bond markets across the world tumbled on fears about Italy and Spain, it emerged that police acting on orders from prosecutors had raided the Milan offices of rating agencies Moody's and Standard & Poor's as part of continuing investigations into their role in the recent financial turmoil."

http://www.guardian.co.uk/world/2011/aug/04/police-raid-milan-moodys-standard-poorsNow

Now, human nature being what it is, it takes incredible intestinal fortitude not to become like them. It would be very easy to justify to oneself the theft and pillaging of others...knowing what we all know now. It seems to be common practice these days.

When the entire idea of the rule of law itself has been turned on its head to serve only the few & the powerful, men will have these thoughts. The weak will act on these thoughts...the strong never do.

Hold the line my brother ;-)

Sun, 01/01/2012 - 12:04 | 2024598 DaveyJones
DaveyJones's picture

"Just because its legal doesn't make it right or justified"

boy if that doesn't sum up where we are, the law are the lawless

happy new year nmewn

Sun, 01/01/2012 - 12:08 | 2024607 nmewn
nmewn's picture

It does doesn't it?

Hold the line my brother and Happy New Year to you...keep fightin ;-)

Sat, 12/31/2011 - 00:02 | 2023189 Sam Clemons
Sam Clemons's picture

Amazing how most retirees were too interested in the NFL to care that their accounts were being plundered.

Sat, 12/31/2011 - 07:12 | 2023420 cossack55
cossack55's picture

Yes, that is all true.

However, these moves are political, not economic.  The OWH want to setup the Repubs.  The Tea Party types will kill any rep who votes to raise debt ceiling, yet they will be blamed for the shut down.  Occams Razor?

Sat, 12/31/2011 - 02:01 | 2023294 e-recep
e-recep's picture

USA has to beat China at something to pull the factories back home. Be it manufacturing cost or technique, it has to be something that China cannot deal with. Industrial revolution did work, maybe industrial revolution II is what is needed.

Sun, 01/01/2012 - 12:07 | 2024604 DaveyJones
DaveyJones's picture

i think peak oil will pull a lot of factories back home. The current system assumes transportation costs are marginal at best. Of course, the longer we wait, the worse it will be. Wars are a very unproductive energy strategy

Fri, 12/30/2011 - 20:18 | 2022890 tarsubil
tarsubil's picture

Someone needs to update the US debt limit vs gold price chart. I guess it really doesn't matter since I'm buying anyways. Does Provident or APMEX accept Discover?

Fri, 12/30/2011 - 20:41 | 2022932 ACP
ACP's picture

Shrinking payrolls and accelerating inflation bitchez!

Fri, 12/30/2011 - 20:43 | 2022937 knowless
knowless's picture

I MADE A SIGN

Fri, 12/30/2011 - 20:43 | 2022939 knowless
knowless's picture

SHITS FUCKED UP AND STUFF

Sat, 12/31/2011 - 00:55 | 2023236 AldousHuxley
AldousHuxley's picture

http://www.youtube.com/watch?v=GFyUvlfZ8j0

 

black teleprompter says in the state of the  union

"Shit....I know shit's bad right now. ...All this starving bullshit..."

 

Americans can't even protest intelligently....

 

I'm looking forward to 2012 election when obama campaigns for "change" and a senator from south carolina yells out

"that's what you said last time dipshit. I've got a solution....you are a dick.What's up!"

 

Idiocracy played out in real life. Shit's real. real fucked up.

Sat, 12/31/2011 - 01:26 | 2023257 Caviar Emptor
Caviar Emptor's picture

2012: bird flu

Sat, 12/31/2011 - 02:10 | 2023300 UP Forester
Fri, 12/30/2011 - 20:53 | 2022956 knowless
knowless's picture

if a sign can change your opinion than you're the antithesis of who i'm trying to reach. we as a nation need to work together to identify and eliminate occupations whose sole goal is to operate as a leach upon productivity. the banking/finance sector in general needs to recognise(and reorganise around itself) that the metrics they use to justify their distribution of capital do not encompass the individuals who most need, and have the capibilities and willingness to pay for their future.

why should it even be necessarry, if we are a representative democracy which constatutionally has the authority to regulate the issuance of currency.. sad.

 

this country will change in many ways, but truly, shits fucked up and stuff, it would be nice if the people granted power by lineage would accept this, and allow for those of us who aren't, the chance to live a rewarding life.

but i won't hold my breath.

 

Fri, 12/30/2011 - 21:53 | 2023055 Ned Zeppelin
Ned Zeppelin's picture

Wealth creation as opposed to wealth extraction.  The New Glass Steagall sounds good to me as a start.  Banks as utilities and greatly reduced in size.  Amend the Constitution to overturn the Citizens United case and strip corporations of "personhood" under the Constiution - only humans should be regarded as persons.  Eliminate all forms of corporate welfare, starting with the oil companies, but get 'em all cleaned out.  Raise the tax rates on the rich - graduate and eliminate all deductions so that the rich pay the same marginal tax rate as the highest individual rates (say, about 25% max).

And prosecute, starting with Hank Paulson and work your way through the list of bankster-favoring traitors.  2012 might be a good year alfter all, if only people would get angry enough. 

Fri, 12/30/2011 - 22:22 | 2023093 economics1996
economics1996's picture

Fuck that crap.  If we had capitalism the banks would be history.

Sat, 12/31/2011 - 00:59 | 2023238 AldousHuxley
AldousHuxley's picture

banks just revealed the truth that US NEVER HAD CAPITALISM....but only mixed economy.

Sat, 12/31/2011 - 23:30 | 2024270 Platypi4Lyfe
Platypi4Lyfe's picture

And your point is? Capitalism is an economic theoretical model only and you know this.

Sun, 01/01/2012 - 05:26 | 2024434 AldousHuxley
AldousHuxley's picture

the point is in mixed economy someone is getting socialism benefits while some others are competing in capitalism.

 

capitalism when it comes to executive bonuses, socialism when it comes to government accounts or subsidies.

Mon, 01/02/2012 - 00:25 | 2025882 Platypi4Lyfe
Platypi4Lyfe's picture

Keep going, eventually something you say may have some relevance by accident. What do executive bonuses have to do with supply & demand? I'm guessing you're mangling "privatize the profits, socialize the losses" but how should I know?

Fri, 12/30/2011 - 22:20 | 2023090 economics1996
economics1996's picture

Government is 45% of the GDP.

Sat, 12/31/2011 - 09:54 | 2023483 pine_marten
pine_marten's picture

Not to mention a full on Orwellian nightmare..........

Fri, 12/30/2011 - 20:53 | 2022960 working class dog
working class dog's picture

Bravo, on the article,

 charts don't lie but liars discredit the truth!

I think I hear a drone over my house, must be the homeland security, or the internet police protecting me from terrorists again.

Ron Paul is an insider too. He is the best house in a lousy neighborhood. I will vote for him, unless a truly outsider

let's say a construction worker, a plumber, an electrician, a waitress, someone from the masses not owing to anyone for getting elected, thats who I would vote for. I would run but I am not a billionaire so I won't get the needed coverage.

I don't think the gold standard is the way to go, but Chris Martenson, and Denninger and Professor Black should all be in the next cabinet.

If we only had one honest cop to police the scum and suck out the cesspool that has formed in Washington and State Governments.

scrap the federal reserve and put the money control back to the treasury. At least we can get rid of them every four years.

Break the Monopolies and do away with the idea of corporations and derivitives, they are a scourge on the human race.

Fri, 12/30/2011 - 21:46 | 2023046 Ned Zeppelin
Ned Zeppelin's picture

Add Elizabeth Warren to the Cabinet as well.  And bring back Elliot Ness and a few honest, incorruptible cops. 

Sat, 12/31/2011 - 01:40 | 2023270 AldousHuxley
AldousHuxley's picture

Warren will have a post just to get some progressive votes, but 90% of the cabinet will still be wall st. backers.

 

That's how politics work. Give an inch to get your vote, but take your foot to their friends.

Fri, 12/30/2011 - 21:05 | 2022980 Caviar Emptor
Caviar Emptor's picture

The price of oil soared in 2011 and will finish about 19 percent higher, on average, after a volatile year dominated by concerns about global supplies. Gasoline followed oil higher this year, with an average for the year of $3.52 per gallon - the highest ever

Overall in 2011, crude prices averaged $95.09 per barrel in New York. That's up from $79.64 in 2010 and $62.11 in 2009. The Energy Department expects prices to rise further in 2012 to an average of $98 per barrel.

In the U.S., gasoline demand dropped by 2.5 percent overall in 2011, according to the Energy Department

...Puts the Dow's 6% gain in perspective. Biflation

http://hosted.ap.org/dynamic/stories/O/OIL_PRICES?SITE=AP&SECTION=HOME&T...


Fri, 12/30/2011 - 21:34 | 2023026 Moe Howard
Moe Howard's picture

Gasoline is half the price it was in 1960 if you pay in 90% silver dimes, it's 15 cents a gallon right now.

It was 31 cents a gallon in 1960. You know, back when coins were 90% silver and dollars were

silver certificates.

Crazy huh?

Sat, 12/31/2011 - 00:19 | 2023206 LowProfile
LowProfile's picture

Looks like automation and innovation really do bring prices down, when applied to real things, and priced in real money.

...Whodathunk?

Sat, 12/31/2011 - 01:55 | 2023286 AldousHuxley
AldousHuxley's picture

also break up of OPEC and US colonization of oil producing countries into using dollars.

Sat, 12/31/2011 - 01:59 | 2023291 AldousHuxley
AldousHuxley's picture

saudis also doing some smart things by investing in oil tech....

http://www.youtube.com/watch?v=z74nMlSEasw

 

tech improves productivity

Fri, 12/30/2011 - 21:37 | 2023029 Georgesblog
Georgesblog's picture

Everything I see starts with the currency is not money. It follows that the economy tends toward disintegration. Prediction of an upside fall to the ground, dead. The talking heads on the financial news present the lie with all their might. No matter how convincing they are, the currency is still just paper.

http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/

Fri, 12/30/2011 - 21:45 | 2023041 Ned Zeppelin
Ned Zeppelin's picture

I say this guy Abbey Joseph Cohen needs to find a new job - he's no fortune teller! 

Fri, 12/30/2011 - 22:31 | 2023110 dhengineer
dhengineer's picture

"She"... Abbey Joseph Cohen is a "she"... although there is probably an extra chromosome in there somewhere...

Fri, 12/30/2011 - 21:46 | 2023044 Yardfarmer
Yardfarmer's picture

talk about kicking a dead horse. my god, is this ever tedious! i yearn for the day when the CPAs like this can go quietly back to their offices, crunch their everlastingly boring numbers and stats, plot the convergence and divergence on their tidy little graphs amidst their charming family photographs and gewgaws and drop the pretense of being the arbiters of our known universe. this empty bombast of mental flatulence is sooooo stultifying and made only the more so by the vainglorious triumphalism which asserts with overwhelming certitude and conviction the superiority of an embarrassing small mindedness.

Fri, 12/30/2011 - 22:02 | 2023069 Cabreado
Cabreado's picture

Yuck.

Fri, 12/30/2011 - 22:10 | 2023076 UP Forester
UP Forester's picture

Someone got a dictionary, a thesaurus AND an SAT studybook for Christmas, I see!

Sat, 12/31/2011 - 01:37 | 2023267 Platypi4Lyfe
Platypi4Lyfe's picture

But no abacus

Sat, 12/31/2011 - 01:44 | 2023272 UP Forester
UP Forester's picture

Does anyone have an abacus that counts up to a quadrillion?  I'd like to see one, I don't think this one goes that far:

http://www.gizmowatch.com/entry/surprisingly-the-worlds-largest-abacus-does-duty-in-a-thai-drug-store/

Sat, 12/31/2011 - 02:34 | 2023313 Platypi4Lyfe
Platypi4Lyfe's picture

If it's men you'd think they would be able to figure anything up to 21 figures, but then again my parents just put the old family set of 1979 World Book encyclopedias on eBay but they gave them to me with a bunch of other useless shit when I got my first place and I saw the entire set in a couple of boxes in my garage a couple weeks ago so who knows.

Fri, 12/30/2011 - 22:10 | 2023077 Jim Quinn
Jim Quinn's picture

Yawn. The ignorant masses have spoken.

Fri, 12/30/2011 - 22:25 | 2023100 Yardfarmer
Yardfarmer's picture

a confederacy of dunces

Sat, 12/31/2011 - 11:23 | 2023510 Jim Quinn
Jim Quinn's picture

I'll use crayons for the next article so you might be able to understand. Charts and facts hurt your pea sized brain.

Fri, 12/30/2011 - 22:12 | 2023079 JR
JR's picture


Throughout the internet, now appearing, are the wrap-up articles for 2011. But none will be better than this one. The hard work and insight that went into the preparation of this report are obvious for those who read to gain understanding, sadly not to include everyone. The total picture is a dismal one with bad actors working their fraud against the people.  It makes clear that the American government is working not for the people, but against the people.

Lincoln’s of, by and for the people no longer applies, except to the extent that the people are the victims of their own government.

And the bankers aren’t nearly through with the U.S. taxpayer yet.

Here is an episode of which I had first-hand experience this week, an episode that obviously is being multiplied over and over from coast to coast. It is the history of a foreclosure; and this is my understanding:

The house, bank owned, was put up for auction at a minimum starting price of $299,000. An associate and I were interested, thinking we could resell it for $350,000.  Immediately, however, the house was bank appraised at $399,000 and pulled off the auction block before we or anyone else could see it.  Then Freddie Mac, listed as owner, put the house on the market for $350,000.

And here’s the catch.  Now, whatever price Freddie receives for the house below the appraised $399,000 “value,” the taxpayer will make up the difference to the bank. IOW, if the house sells for $340,000, Freddie (the U.S. Treasury) will give the bank the $59,000 difference.


It’s a banker world after all.

Fri, 12/30/2011 - 22:26 | 2023101 economics1996
economics1996's picture

Fucking great.

Fri, 12/30/2011 - 22:48 | 2023127 Cabreado
Cabreado's picture

"It’s a banker world after all."

Not to worry, JR.

They have miscalculated; it is their very nature.

And Spirit usurps evil and stupid.

Sat, 12/31/2011 - 11:46 | 2023565 RiverRoad
RiverRoad's picture

JR, the banks have been playing that little game for a long, long time with "good " foreclosures.  I recall an instance back in the '93 housing debacle in CT when a banker snapped up a luscious riverfront foreclosure for himself in the same process:  Win, Win, Win.

Sun, 01/01/2012 - 11:25 | 2024555 xcehn
xcehn's picture

When you read posts like this you can only feel revulsion about the complicit MSM. Thanks for all your great posts, Jim.

Fri, 12/30/2011 - 23:51 | 2023172 Snakeeyes
Snakeeyes's picture

Our debt situation:

Ring In The New Year With Taxpayers Liable For $2.3 Million Each For Debt, Social Security, Medicare And Other Entitlements

http://confoundedinterest.wordpress.com

And 2011 in review:

http://confoundedinterest.wordpress.com/2011/12/30/2011-a-year-in-review...

Sat, 12/31/2011 - 01:47 | 2023276 JR
JR's picture

As you say: So, Bernanke is asking consumers to save less, borrow more and go back to the heady days of the debt bubble. Apparently, The Chairman isn’t a fan of Von Hayek’s “The Road to Serfdom.”

I believe Wikipedia’s introduction to Hayek’s on-going best seller to be one of the best:The Road to Serfdom is a book written by the Austrian-born economist and philosopher Friedrich von Hayek (1899–1992) between 1940–1943, in which he ‘warned of the danger of tyranny that inevitably results from government control of economic decision-making through central planning,’[1] and in which he argues that the abandonment of individualism, classical liberalism, and freedom inevitably leads to socialist or fascist oppression and tyranny and the serfdom of the individual. Significantly, Hayek challenged the general view among British academics that fascism was a capitalist reaction against socialism, instead arguing that fascism and socialism had common roots in central economic planning and the power of the state over the individual.”

“An oppressed people are authorized whenever they can to rise and break their fetters.”  Henry Clay: Speech, House of Representatives, March 4, 1818.

Thanks for the invite, professor, to “Hear what I have to say on the 2012 outlook on Fox Business with Dagen and Connell on January 3rd at 11am.”  I’ll try to make it.

Sat, 12/31/2011 - 00:19 | 2023203 Caviar Emptor
Caviar Emptor's picture

The biggest mistake of the last 40 years: not facing up, taking stock, biting the bullet, rolling up the sleeves and adjusting to the new reality. Rather, the past was kept "alive" through a phony reality made possible with a giant national credit card. With so much rope to hang ourselves with there's now very little room to maneuver and few options. Rather than try for a radical cure TPTB have chosen for us slow torture and decline

Sat, 12/31/2011 - 02:10 | 2023298 AldousHuxley
AldousHuxley's picture

biggest mistake of last 40 years is belief that America could do no wrong.

 

arrogance blinds.

Sat, 12/31/2011 - 02:33 | 2023315 Platypi4Lyfe
Platypi4Lyfe's picture

What government ever said Oops, we fucked up?

Sat, 12/31/2011 - 07:26 | 2023425 cossack55
cossack55's picture

Iceland.

Sat, 12/31/2011 - 23:47 | 2024288 Platypi4Lyfe
Platypi4Lyfe's picture

You'll notice the Squid is back & better than ever

Sat, 12/31/2011 - 11:20 | 2023543 rbg81
rbg81's picture

The biggest mistake of the last 40 (really 46) years is the expansion of the welfare state.  That is the root cause of all our problems.  Back in '65, LBJ kicked off the Great Society in large part to keep the cities from exploding.  In all fairness, he may have thought all that $$ would lift up the underclass.  Instead, like a cancer, the underclass has gotten bigger and dependency on Government handouts has steadily increased to the point where its mainstream.  So, any social explosion is potentially 20X as big as it might have been in '65--it would tear us apart completely.  There is no way out except to keep feeding the beast with ever higher deficits.  That is the #1 factor driving Bernake:  keep the deficit affordable all all cost--which is why we will have zero interest rates till Shatterday.  That is what 46 years of social spending has wrought.

Sun, 01/01/2012 - 01:59 | 2024382 Tic tock
Tic tock's picture

[yes, no two ways about it - there's too much Hate around, and I apologize for the sound of anger]

Welfare Spending is a Government transfer to Consumption, without Welfare the rise in Inflation would have been far less meteoric, and the i% might well have been higher: (with an increase in incomes, price levels may rise, once in the economy some portion of the transfer becomes core deposits, which may then fuel credit expansion, and ultimately nominal shareholder return)

What Welfare is not, is a transfer into Productive Capital - although, once the middle class cross into 'employer status', several approximations to to Welfare tranfers exist.

If I understand your premise entirely, it is that the underclass have little incentive to increase their incomes through dint of their own effort, being instead reliant on the Welfare transfer. However, during the same period, the rise in individual productivity due to technological advances has been considerably greater than the more traditional 'infrastructure investments in cities. This is 'fundamentally relevant'. A lot of new 'Services' have developed significant income streams based on - if you like, 'bread and Roses' in a new, and common, community of man, - so a large number of literate people have lifted themselves out of the mire, finding gainful employment, initiating social organization, the like.  

And why not, it is far cheaper to invest in yourself through rented bytes and board-upgrades than in Land and plant? ...this is the discrepency in the pricing structure. Look at the retail price of breakfast cereals, how much does the corn, cardboard and plant actually cost the corporation? Similarly, there are vast tracts of land unused, which have no effect on the price of land. Partly, because, for a while, the state would 'invest in unused land' by increasing the 'urban concentration': just putting people closer together results in them buying and selling, requiring banking, and so increasing the demand for money. Which results in Education, Profits, while the resources-required for cities were then cross-subsidized from the increased city revenue....and where the 'farmers' were disparate, they were monetarily destroyed, by the subsidization, so corporations could take over- for profit, where the profit is entirely due to government transfer. (In Nation after nation, era after era).

...Welfare Spending, where does it go? It has to go into the economy: say the multiplier is 5 and taxes are 20% - then there would be no loss to Public Accounts. All you have to do to balance Welfare, is match the aggragate multiplier with the general tax rate, and welfare-spending ceases to be an issue.

 Today, the mutiplier is not working, at all, this is the problem.        

Sun, 01/01/2012 - 02:44 | 2024396 Platypi4Lyfe
Platypi4Lyfe's picture

I'm sorry, did you say something? That's the problem with being a rampant racist, you can take all the time you want and make all the salient points you want but no one will pay attention, except of course the weak minded "sheeple" that have no problem with that sort of thing. Bbye

Sat, 12/31/2011 - 04:26 | 2023373 Tic tock
Tic tock's picture

Governments gave themselves too much power -and lack the wisdom to use much of it. ...everywhere; so the populist backlash will come against telecoms and the internet- people, companies, will start to shut off business done over the networks. People Cannot abide this travesty: verily, I wonder sometimes, even though I know it is not true, whether the JEWs, from my own line, are descended from pigs, for the way they treat people (-in response to the 3-ring circus that Aaron is pushing-( -and I actually, generally, by and large, appreciate the jewish culture, mostly. Mark me, the population are sick and tired, hurt, angry, they are dispossesed, they are poor and they have no recourse to the Law. Even the Romans, for all their killing, did not effect such venality. Nor the decadent Sun-court wield such lethality: this is quite possibly the worst government that has ever existed on the face of this earth, including Nero's.

 The backlash - The Americans and the English are despised already, the Canadians are on their way to the same status, just by association, and the Spanish, whom appear leashed to the Cereberus. I think the rest of the world cannot fathom why any among these nations would ally themselves with such corruption; really, what are the significant good points? ...Banking, has lost it's lustre, Islamic banking, is widely understood to have no functional difference- it's a poor joke, while China (and India) are gripped under loan-sharking. -Worse though, these abdominations from the sewer control Police, Military and an unaccountable 'private contracting force' - which is still merely the physical veil - it is the Central Banks who have already dismantled the illusion of government. Worldwide. This so-called status quo is kept alive only by the thuggery of the army and the police...institutions who gave an oath to protect the innocent. not such a problem with Media, but it's a sea-change already, not a single person I know now blindly listens to the propoganda, every single one sees it for the pale shadow of fear it is. And these goverment are Unable to enact a change, while their Banks, in their current form, still exist. They have already lost all the battles worth fighting.

Inflation will marginalise most of the 2billion who live in a market economy. Deflation - why bother mentioning it. The modus operandi has been to nullify further options for  the citizenry to express their opinion, this leads to anger. People will start to go off-grid in response. Internationally, nations will shun banking: survival will accept a lower standard of living, and nations will try and move off-the-dollar. The army of the US will attempt several shocks to force people back to safety, but the Euro is Dead, their infrastructure is mature, their prices are too high, their foreign contracts a public relations excercise, so that is a pool of dollars that do nothing but increase volatility. Thus, the economics of the dollar is that it cannot be trusted. and neither can the swiss franc. This kills Western Finance and from here on in, it's all protection money. Eventually then, there will have to be confrontation, and then a war. Quite hopefully, one that exterminates this entire race of extremely foul creatures.             

Sat, 12/31/2011 - 14:44 | 2023747 rbg81
rbg81's picture

Eventually then, there will have to be confrontation, and then a war. Quite hopefully, one that exterminates this entire race of extremely foul creatures.             

 I wonder sometimes, even though I know it is not true, whether the JEWs, from my own line, are descended from pigs.

-------------------------------------------------------------------------------------------

Wow. You are one sick, self-hating anti-semetic bastard.    Do us all a favor, and wish yourself away somewhere else.

BTW--I don't believe for a nanosecond you are Jewish in any way.

Sun, 01/01/2012 - 00:11 | 2024313 Platypi4Lyfe
Platypi4Lyfe's picture

I am, I get it. You have to understand hate-speak. He's not saying he IS Jewish; he's saying he's "descended" from Jews, aka fundamentalist Christian. That would be kind of akin to evolution twisted into the Jesus freak brand of crazy, how the divine Christians are descended from the barbarous Jews. Heard this brand of nuttery before, kind of like when I was in high school and a couple of times I got asked if I really did have horns & a tail.

You see the vast majority of human beings are that backward and stupid and ignorant and uneducated and terrified and dangerous. This would be why those that are in charge put control mechanisms in place because if there ever was freedom and an open society said society would rip itself apart in a matter of weeks. Take a look around at the dirty, disgusting animals all around you and you tell me the vast majority don't belong in cages.

In anonymity it comes out but to your face they try to mask it. Poorly.

Sun, 01/01/2012 - 13:53 | 2024625 rbg81
rbg81's picture

Sorry, its one thing to say that ALL human beings have negative qualities, its another thing to single out the Jews (as Tick Tock did).  When you consistently single out the Jews and make dehumanizing references (like comparing them with pigs), that makes you an anti-semite.   And claiming you're part Jewish (descended or otherwise) is a tactic to mask it--poorly. 

My own observation is that every ethnicity seems to have its particular warts, but (for some reason) the Jews seem to consistently get tagged as the root of all evil or injustice in the world.  Even when they're the target of genocide, its their own fault.  The really ironic things is that their detractors claim (one one hand) that they have superhuman abilities in terms of intellect, political influence and business acumen; on the other hand, they're supposedly on the same level with barnyard animals.  Go figure.

As for me, I'm not nearly as down on the Human Race as many ZHers seem to be.  We may be descended from lower animals, but we are not like them.  Remember that when your taking your daily hot shower, sleeping in a dry, heated room or .....using a toilet.  I've also learned that its a mistake to underestimate people of any ethnicity--it will eventually come back to bite you in the ass. 

Mon, 01/02/2012 - 00:34 | 2025901 Platypi4Lyfe
Platypi4Lyfe's picture

So you're lecturing someone who is Jewish on antisemitism? Okay..

The Jew hate-speak is weakness of intellect and lack of moral fiber, nothing more. The more you dissect it the more you lower yourself. The veil of anonymity shields people like these to an extent but not totally.

Sat, 12/31/2011 - 07:58 | 2023434 pineyard
pineyard's picture

When I read ANGLOSAXON MEDIA .... INCLUDING THE PAGES OF ZEROHEDGE

WHAT do I read .. and percieve ... overall ?          Ill tell Ya !

NAKED FEAR !

Fear .. that finally the FREE Punch Bowl which has been in place since end of Second World War                is  EMPTY

This fear manifests itself in many ways .. basically though in AGRESSION  been directed towards EUROPE , the reason for this being the HOPE that by dragging down Europe .. the INEVITABLE ANGLOSAXON FINANCIAL COLLAPS can be postponed for a little further ... as the calculation probably is that smaller european entities can be CAJOLED into continuing to FINANCE the GARGANTUAN ANGLOSAXON DEBT MACHINE. This in spite of the FACT ..that Europe already has lent TRILLIONS to the USA .. and UK .. DEBTS which are OUTSTANDING .. and in anglosaxon media terminology are called      " American Counter - Party Risks " ....Ha ha ha ha ha !

You can find numbers here  : http://www.forbes.com/sites/afontevecchia/2011/12/20/eu-banks-1-3t-in-u-s-assets-a-risky-offshore-banking-sector/

but these us numbers are even Make-up ... the real numbers You can find here :  http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/EXTDECQEDS/0,,menuPK:1805431~pagePK:64168427~piPK:64168435~theSitePK:1805415,00.html

Where one can see that one can add 1 TRILLION DEBT to the numbers mentioned by FORBES ( probably to much to stomach.. for the US Public )

BUT ...the emperor has NO CLOTHES , The Anglosaxon world ( USA and UK ) continue to run ENORMOUS DEFICITS as can be seen by studying TRADING and CURRENT ACCOUNT BALANCES

WHY ? Because the  Productive aparatus , the foundation for real wealth does NOT bring in as much as is CONSUMED ...in the Anglosaxon World !

This has been the case for as long as I can remember . A fraudulent DERIVATIVE FINANCIAL SYSTEM was put in place by the anglosaxon world in order to make the world believe that MONEY was there. Alas .. it was just ....AIR .. Pennies multiplied to appear as where they Dollars ..or Pounds .

That Game is OVER !

I do NOT say that European Sovereign Debt is not TOO BIG ... because it is . I agree.. iot is far too big !

Still NET POSITIVE CAPITAL exists ..in EUROPE ... Europes DEBTS are to Europe itself and Trading as well as Current Account Balances are Positive.

This means that Europes situation may be  manegeable... provided corrective measures are taken ... ( to spend less ! ) as is attempted by Europe ..right now..and across the board .... and in spite of the back-stabbing occuring  out of the anglosaxon world

The same cannot be said about the Anglosaxon world .. which just continues on the DEBT BINGE and overall appears to be a HOPELESS CASE . For the US becoming an increasingly FASCHIST SURVEILANCE NATION .. the latter put in place by the US  powers who are .. because they .. besides of fear from Europe , fear from China  ,,fear from Muslims ...  well yes,, fear of almost anything ...  also apparantly  FEAR .  their own populations .

Happy New Year !

Sat, 12/31/2011 - 09:44 | 2023477 Catullus
Catullus's picture

Read that again: Shit is [fucked up and] bullshit.  Shit is bullshit.  Truly.

Sat, 12/31/2011 - 11:26 | 2023549 uno
uno's picture

person who wrote that is probably a philosophy grad from NYU with 100,000 in student loan debt.  

Sat, 12/31/2011 - 10:19 | 2023488 ghostzapper
ghostzapper's picture

Nice work.  One of the better guest posts. 

 

Maybe ole W. Axl Rose had it right when he penned "Chinese Democracy" back in the 90's:

You think you got it

all locked up inside

and if you beat em enough

they'll die

it's like a walk in the park

from your cell

while you're keeping

your own kind in hell

when your Great Wall rots

blame yourself

while their arms reach out

for your help

and you're out of time!!!!!!!!!!!!!

Sat, 12/31/2011 - 10:32 | 2023497 Everybodys All ...
Everybodys All American's picture

You want to stop this train from running off the tracks. Start by firing Bernanke and Geithner.

Sat, 12/31/2011 - 12:02 | 2023579 ucsbcanuck
ucsbcanuck's picture

Has anyone overlaid a chart of the Dow Jones or S&P vs Obama's popularity ratings? I think that will be the best indicator of what is going to happen in 2012...

Sat, 12/31/2011 - 12:28 | 2023600 PulauHantu29
PulauHantu29's picture

Abby should be called before Congress to tesitfy why she tried to distort markets with her seriously wrong blogging and writings. If they can scare Meredith Whitney with that BS tactic, why don't they equally go after these pumper shills.

Sat, 12/31/2011 - 12:38 | 2023605 bill1102inf
bill1102inf's picture

House prices increased 10X from 69-89 where that chart starts.  And we are going back there. Plan accordingly.

Sat, 12/31/2011 - 14:08 | 2023702 Snakeeyes
Snakeeyes's picture

Our equities were at 0% return in 2011 and the rest of the world was in -10 to -20% negative returns on equities. See table here:

http://confoundedinterest.wordpress.com/2011/12/30/2011-a-year-in-review...

Either the U.S. is the equities bomb shelter (like Treasuries) OR the U.S. is the next shoe to drop.

Take your pick.

Sun, 01/01/2012 - 01:28 | 2024363 ebworthen
ebworthen's picture

I love that picture/poster:

"Shit is fucked up and bullshit"

Perfect.

Sun, 01/01/2012 - 04:49 | 2024425 Tic tock
Tic tock's picture

..it is an opinion that the 'banksters' are waging an economic war in which the middle and lower classes are losing. ...and fighting a war is different from fighting a battle - in that one can retreat from a battle. So, if you commit to fighting a war, then be prepared to lose everything.

Sun, 01/01/2012 - 11:04 | 2024542 Snakeeyes
Snakeeyes's picture
What nonsense! The Federal government is in excellent fiscal health and The Fed can accomodate the $65 trillion financial hole. /sarc The Federal (Un)Balance Sheet – $65 Trillion Financial Hole = $550k Per Household
Or $2.2 million per de-facto taxpayer, take your pick!

http://confoundedinterest.wordpress.com/2012/01/01/the-federal-unbalance...

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