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Guest Post: The Best Looking Horse In The Glue Factory

Tyler Durden's picture


Submitted by Jim Quinn of The Burning Platform

Guest Post: The Best Looking Horse In The Glue Factory.

“Believe me, the next step is a currency crisis because there will be a rejection of the dollar, the rejection of the dollar is a big, big event, and then your personal liberties are going to be severely threatened.” - Ron Paul

As usual the MSM did its usual superficial dog and pony show for the American public on Saturday and Sunday. The overall tone on every show (not journalism) was to calm the audience. Every station had a ”downgrade special” to explain why you shouldn’t panic over the downgrade of the United States. As we can see, it didn’t work. Worldwide markets went berserk. The reactions of the various players in this saga have been very enlightening to say the least.

As I watched, listened and read the views of hundreds of people over the last few days, I recalled a statement by David Walker in the documentary I.O.U.S.A. This documentary was made in late 2007 before the financial crisis hit. The documentary follows Walker, the former head of the GAO, and Bob Bixby, head of the Concord Coalition, on their Fiscal Wake Up tour.

In the film, Walker tells the audience: “We suffer from a fiscal cancer. If we don’t treat it there will be catastrophic consequences.” He argued the greatest threat to America was not a terrorist squatting in a cave in Afghanistan, but the US debt mountain. He was nervous about the increasing dependence on countries such as China, which are the biggest holders of US Treasury bonds. Bixby explained: “If you knew a levee was unsound and people were moving into that area, would you do nothing? Of course not.” These men were sounding the alarm when our National Debt was $9 trillion. Evidently, no one in Washington DC went to see the movie. They’ve added $5.5 trillion of debt to our Mount Everest of obligations.

After listening to the shills, shysters, propagandists, and paid representatives of the vested interests over the last few days, Mr. Walker’s response to someone pointing out Europe and other countries were in worse shape than the U.S. came to mind:

“What good does it do to be the best-looking horse in the glue factory?”

At the end of the documentary there was a prestigious panel of thought leaders discussing ideas to alter the country from its unsustainable fiscal path. I was shocked when Warren Buffett basically stated there was nothing to worry about: 

“I’m going to be the token Pollyanna here. There is no question that our children will live better than we did. But it’s just like my investments. I try to buy shares in companies that are so wonderful, an idiot could run them, and sooner or later one will. Our country is a bit like that.”

Buffett has since turned into a Wall Street/Washington apologist, talking his book. He declared this weekend the US deserves a quadruple A rating. He has tried to protect his investments in GE, Goldman Sachs, Moodys and Wells Fargo by declaring their businesses as sound and their balance sheets clean. He is now just a standard issue sellout spewing whatever will protect his vast fortune. Truth is now optional in Buffett World.  

The Oracle of Omaha has continuously bad mouthed gold and pumped up the economic prospects for the U.S. He trashed gold in his March 2011 report to shareholders:

“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”

I guess the leadership of this country has created a bit of fear in the market, as gold has risen from $1,400 to $1,750 and Warren’s beloved financial holdings have tanked, along with the stock price of Berkshire Hathaway (down 23% since March). There seems to be an inverse relationship between the barbarous relic and lying old men shilling for the vested interests.

Vested Interests

When you watch the corporate mainstream media, or read a corporate run newspaper, or go to a corporate owned internet site you are going to get a view that is skewed to the perspective of the corporate owners. What all Americans must understand is everyone they see on TV or read in the mainstream press are part of the status quo. These people have all gotten rich under the current social and economic structure. Buffett, Kudlow, Cramer, Bartiromo, Senators, investment managers, Bill Gross, Lloyd Blankfein, Jamie Dimon, Jeff Immelt, and every person paraded on TV have a vested interest in propping up the existing structure. They are talking their book and their own best interests. Even though history has proven time and again the existing social order gets swept away like debris in a tsunami wave, the vested interests try to cling to their power, influence and wealth. Those benefitting from the existing economic structure will lie, obfuscate, misdirect, and use propaganda and misinformation to retain their positions.

The establishment will seek to blame others, fear monger and avoid responsibility for their actions. Ron Paul plainly explains why the US was downgraded:

“We were downgraded because of years of reckless spending, not because concerned Americans demanded we get our finances in order. The Washington establishment has spent us into near default and now a downgrade, and here they are again trying to escape responsibility for their negligence in handling the economy.”

The standard talking points you have heard or will hear from the vested interests include:

  • Stocks are undervalued based on forward PE ratios.
  • Ignore the volatility in the market because stocks always go up in the long run.
  • Buy the f$%ing dip.
  • America is not going into recession.
  • The market is dropping because the Tea Party held the country hostage.
  • The S&P downgrade is meaningless because they rated toxic subprime mortgages AAA in 2005 – 2007.
  • The market is dropping because the debt ceiling deal will crush the economy with the horrific austerity measures.
  • The S&P downgrade is meaningless because Treasury rates declined after the downgrade.
  • Foreigners will continue to buy our debt because they have no other options.
  • Foreigners will continue to invest in the U.S. because Europe, Japan and China are in worse shape than the U.S.
  • America is still the greatest economy on the planet and the safest place to invest.

Each of these storylines is being used on a daily basis by the vested interests as they try to pull the wool over the eyes of average Americans. A smattering of truth is interspersed with lies to convince the non-thinking public their existing delusional beliefs are still valid. The storylines are false.

Here are some basic truths the vested interests don’t want you to understand:

  • As of two weeks ago the stock market was 40% overvalued based upon normalized S&P earnings and was priced to deliver 3% annual returns over the next decade. The S&P 500 has lost 17%, meaning it is only 23% overvalued. Truthful analysts John Hussman, Jeremy Grantham and Robert Shiller were all in agreement about the market being 40% overvalued. This decline is not a buying opportunity.
  • The S&P 500 was trading at 1,119 on April 2, 1998. The S&P 500 closed at 1,119 yesterday. In March 2000 the S&P 500 traded at 1,527. By my calculation, the stock market is 27% below its peak eleven years ago. As you can see, stocks always go up in the long run. It is just depends on your definition of long.
  • The talking heads on CNBC told you to buy the dip from October 2007 through until March 2009. The result was a 50% loss of your wealth.
  • The government will report the onset of recession six months after it has already begun. People who live in the real world (not NYC or Washington DC) know the country has been in recession for the last seven months. The CNBC pundits don’t want to admit we are in a recession because they know the stock market drops 40% during recessions on average and don’t want you to sell before they do.
  • The stock market held up remarkably well during the debt ceiling fight. It did not begin to plunge until Obama signed the toothless joke of a bill that doesn’t “cut” one dime of spending. The markets realized  the politicians in Washington DC will never cut spending. The National Debt will rise from $14.5 trillion to $20 trillion by 2015 and to $25 trillion by 2021, even with the supposed austere spending “cuts”.


  • The left wing media and the frothing at the mouth leaders of the Democratic Party have conducted focus groups and concluded that blaming the extreme, terrorist Tea Party for the stock market crash and the S&P downgrade plays well to their hate mongering ignorant base. They have rolled out their rabid dogs, Joe “gaffe machine” Biden, Howard “AYAHHHHHH!!!” Dean and John “ketchup” Kerry, to eviscerate the Tea Party terrorists.

  • The mainstream liberal media would like you to believe the Tea Party is an actual cohesive group that wants to throw grandmothers and the poverty stricken under the bus. The neo-cons in the Republican Party and their mouthpieces on Fox News have tried to co-opt the Tea Party movement for their purposes. There is no one Tea Party. It is a movement born of frustration with an out of control government. Ron Paul represented the Tea Party before it even existed and is the intellectual leader of the movement. His is the only honest truthful voice in this debate:

“As many frustrated Americans who have joined the Tea Party realize, we cannot stand against big government at home while supporting it abroad. We cannot talk about fiscal responsibility while spending trillions on occupying and bullying the rest of the world. We cannot talk about the budget deficit and spiraling domestic spending without looking at the costs of maintaining an American empire of more than 700 military bases in more than 120 foreign countries. We cannot pat ourselves on the back for cutting a few thousand dollars from a nature preserve or an inner-city swimming pool at home while turning a blind eye to a Pentagon budget that nearly equals those of the rest of the world combined.”

  • S&P’s opinion about any debt should be taken with a grain of salt. They, along with Warren Buffet’s friends at Moodys, were bought and sold by the Wall Street criminal element. Anyone with a smattering of math skill and an ounce of critical thinking would have concluded the U.S. was a bad credit three years ago. A Goldman Sachs trader had this opinion of the brain dead analysts at Moodys: “Guys who can’t get a job on Wall Street get a job at Moody’s.” Michael Lewis, in his book The Big Short, summarized the view of the rating agencies:

“Wall Street bond trading desks, staffed by people making seven figures a year, set out to coax from the brain-dead guys making high five figures the highest possible ratings for the worst possible loans. They performed the task with Ivy League thoroughness and efficiency.”

  • The most laughable storyline spouted by the Democrats and their lapdogs on MSNBC is the extreme austerity measures forced on the country by the Tea Party has caused the stock market to collapse. The plan “cuts” $22 billion in 2012 and $42 billion in 2013. Over this time frame, the Federal government will spend $7.4 TRILLION. The horrific spending “cuts” amount to .86% of spending over the next two years. Meanwhile, we will add at least $3 trillion to the National Debt over this same time frame. Of course, we could listen to Paulie “Spend More” Krugman and add $6 trillion to the national debt with another stimulus package. When a Keynesian solution fails miserably, just declare it would have worked if it was twice the size.
  • Barack Obama, the James Buchanan of our times, gave one of the worst Presidential speeches in the history of our country yesterday. In full hubristic fury he declared the United States of America would ALWAYS be a AAA country. The American Exceptionalism dogma is so very amusing. We are chosen by God to lead the world. Barack should have paid closer attention in history class. The Roman, Dutch, Spanish and British Empires all fell due to their hubris, fiscal mismanagement and overseas military exploits. The American Empire has fallen and can’t get up.  

And now we come to the $100 trillion question. The establishment/vested interests/status quo declares the United States as the safest place in the world for investors. They frantically point out that people are pouring money into our Treasuries and interest rates are declining. They hysterically blurt out that Europe has much bigger problems than the U.S. and China’s real estate bubble will implode in the near future. These are the same people who told you the internet had created a new paradigm and NASDAQ PE ratios of 150 in 2000 were reasonable. The NASDAQ soared to 5,000 in early 2000. Today it trades at 2,358, down 53% eleven years later. These are the same people who told you they aren’t making more land and home prices in 2005 were reasonable. They told you home prices had never fallen nationally in our history, so don’t worry. Prices are down 35% and still falling today.

Medicare and Medicaid spending rose 10% in the second quarter of 2011 from a year earlier to a combined annual rate of almost $992 billion, according to the Bureau of Economic Analysis (BEA). The two programs are likely to crack $1 trillion before the end of the year. Medicare’s unfunded liability alone amounts to $353,350 per U.S. household. The National Debt will reach 100% of GDP in the next four months as we relentlessly add $4 billion per day to our Mount Everest of debt. Federal spending in 2007 was $2.7 trillion. Today, they are spending $3.8 trillion of your money. The country does not have a revenue problem. We have a spending addiction and the addict needs treatment. Doctor Ron Paul has our prognosis:

“When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans.”

The politicians and bankers who control the developed world have made the choice to print money and create more debt as their solution to an un-payable debt problem. Europe, Japan, the U.S., and virtually every country in the world want to devalue their way out of a debt problem created over the last forty years. It has become a race to the bottom, with no winners. Every country can’t devalue their currency simultaneously without blowing up the entire worldwide monetary system. But, it appears they are going to try. The United States will never actually default on its debts. Ben Bernanke will attempt to default slowly by paying back the interest and principal to foreigners in ever more worthless fiat dollars. This will work until the foreigners decide to pull the plug. For now interest rates are low and the U.S. is the best looking horse in the glue factory. But we all know what happens to all the horses in the glue factory – even Mr. Ed.


 “It is true that liberty is not free, nor is it easy. But tyranny – even varying degrees of it – is much more difficult, and much more expensive. The time has come to rein in the federal government, put it on a crash diet, and let the people keep their money and their liberty.” - Ron Paul


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Tue, 08/09/2011 - 12:03 | 1542799 schoolsout
schoolsout's picture

Gonna have to print this one up and read it later...skimming over it, it looks good.

Tue, 08/09/2011 - 12:34 | 1542869 nope-1004
nope-1004's picture

Let me summarize it for you: Buffet said

“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”

Now can someone please define "money" for the ostrich of Omaha? Is money debt? Is money an IOU? Is money federal reserve promises? Truth is, he's past his prime and still entrenched in a failed economic model and, like the big banks, will fail too.

I'd also like to know what the average "productivity" of an American is vs. gold.  I bet it's gone waaaaay down in recent years.  So his comparison that gold doesn't produce anything is a bit heady, considering his own country is fat and lazy.

Tue, 08/09/2011 - 12:37 | 1542896 Spitzer
Spitzer's picture

I'd also like to know what the average "productivity" of an American is vs. gold. 

American productivity is net negative. That is the essence of the trade deficit.






Tue, 08/09/2011 - 13:31 | 1543086 HoofHearted
HoofHearted's picture

Can't believe nobody else has said this...

"I try to buy shares in companies that are so wonderful, an idiot could run them, and sooner or later one will. Our country is a bit like that.”-from our old Buddy Warren...

Haven't we had idiots running the country for too long and that's why we're in this damn mess now???- HoofHearted

Tue, 08/09/2011 - 13:30 | 1543073 Pegasus Muse
Pegasus Muse's picture

Old Fart Warren should have paid closer attention to his father, Congressman Howard Buffett:

"I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it, unless you are willing to surrender your children and your country to galloping inflation, war and slavery then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue -- the restoration of your freedom to secure gold in exchange for the fruits of your labors."

Howard on fiat currency... "But first let me clear away a bit of underbrush. I will not take time to review the history of paper money experiments. So far as I can discover, paper money systems have always wound up with collapse and economic chaos."

Source: Congressional records


Tue, 08/09/2011 - 12:04 | 1542804 Spitzer
Spitzer's picture

Euro was up when the dow was down 600

King Euro



Tue, 08/09/2011 - 12:06 | 1542806 HITMAN56
HITMAN56's picture

this is a story bout Billy Jo and Bobby Sue...

Tue, 08/09/2011 - 13:30 | 1543082 Its the Vatican...
Its the Vatican Stupid's picture

I beg to differ:

Goodbye Mr. Ed.- David Bowie (Tin Machine)

Tue, 08/09/2011 - 12:08 | 1542813 AnAnonymous
AnAnonymous's picture

Same fallacy here.

US citizens love to make it a monetary/currency issue.

It is not. Production capacity is about to level or even to decrease.

In this context, even with no increase of the money supply, every debt is repaid in currency that is worth less and less as less and less goods are produced.

That is the core issue.

And currently, the US and co are fighting to make sure they will go past the tipping point having enjoyed the most of the expansion phase.

US citizens want to consume as much as it is possible while consuming is still a cheap option because of abundance. Debt is extremelly good in this context.

Tue, 08/09/2011 - 12:26 | 1542868 EvlTheCat
EvlTheCat's picture

Sounds like a broken record

Tue, 08/09/2011 - 12:08 | 1542814 drbill
drbill's picture

Alternative title: Most Appealing Turd in the Punch Bowl

Tue, 08/09/2011 - 12:14 | 1542834 Spitzer
Spitzer's picture

If you think its the dollar then you are wrong.

The Eurozone is a net creditor with no trade deficit. So give me a good reason that the dollar is "the most appealing turd in the punchbowl"

Surprised Mythbusters hasn't got ahold of this one yet.

Tue, 08/09/2011 - 12:38 | 1542898 cranky-old-geezer
cranky-old-geezer's picture

So give me a good reason that the dollar is "the most appealing turd in the punchbowl"

It's the world reserve currency.

Not much longer though.

Tue, 08/09/2011 - 12:53 | 1542924 Spitzer
Spitzer's picture

Creditors have an excess supply of them because it has been the reserve currency. That is a negative, not a positive.

Plus, when people spew the myth, they are implying that it has the best fundamentals of all the currencies, they are not implying that it "is the reserve currency".

Tue, 08/09/2011 - 13:52 | 1543160 cranky-old-geezer
cranky-old-geezer's picture

Don't bitch at me, go bitch at those folks rushing into US Treasuries. 

They don't care about your arguments for the Euro.  Nor do I.  Nor does anyone else.

If you think the Euro is so wonderful go invest in it.  Put your money where your mouth is.

Tue, 08/09/2011 - 17:21 | 1544047 Spitzer
Spitzer's picture

Still no reasons eh ?

Wed, 08/10/2011 - 14:18 | 1547436 cranky-old-geezer
cranky-old-geezer's picture

I already gave you a reason.  A big reason.

It may not qualify in your view, but it obviously qualifies in many other people's view. 

If it idoesn't qualify in your view, fine.  Nobody cares about your view.

Tue, 08/09/2011 - 12:58 | 1542946 ddtuttle
ddtuttle's picture

The Euro is not even 10 years old and they've completely destroyed the thing.  It should be the cleanest healthiest currency on the planet because, in theory, there hasn't been time to F^%#K it up.

But they allowed their banking system to print obscene amounts of these things and put the continent into a classic debt deflation/liquidity trap.  At tleast the United States took 70 years to get in this much trouble.  Besides its the obligation of the holder of the reserve currency to liquify the global economy.  It ends being an economic curse, but our empire is based on that and the Pax Americana from the 700  military bases we maintain around the world.

Admittedly we're just as F^%$#K'd as Europe, but at least we have an excuse.

Tue, 08/09/2011 - 13:47 | 1543131 Spitzer
Spitzer's picture

No, you are 50 billion dollars a month more fucked then Europe. Germany has trade surpluses with China.

So out of that whole rant...I didn't see one reason why the dollar is " the best looking horse in the glue factory".


Tue, 08/09/2011 - 14:23 | 1543284 Creepy Lurker
Creepy Lurker's picture

I understand your frustration, I don't get it either. I've been watching so much money pour into Treasuries the damned things have gone down nearly 100 BP in 4 days, immediately after the downgrade.

There is no rational explanation. For whatever it's worth, I agree with you. Sorry I can't explain it, I can't even explain it to myself. *shrugs*

Tue, 08/09/2011 - 23:22 | 1545116 StychoKiller
StychoKiller's picture

It's "Tradition!"   Oh, you wanted a RATIONAL bad.

Tue, 08/09/2011 - 12:08 | 1542815 bigdumbnugly
bigdumbnugly's picture

still horseshit no matter how it looks

Tue, 08/09/2011 - 12:08 | 1542817 Caviar Emptor
Caviar Emptor's picture

Best looking corpse in the morgue. 

Best looking bean sprout in Germany


Tue, 08/09/2011 - 12:24 | 1542863 pods
pods's picture

The hottest Omega Mu.


Tue, 08/09/2011 - 12:30 | 1542876 Caviar Emptor
Caviar Emptor's picture

Hottest hooker with clap


Tue, 08/09/2011 - 13:19 | 1543035 Citxmech
Citxmech's picture

"The leper with the most fingers"

(courtesy of The Two Jakes and Max Keiser)

Tue, 08/09/2011 - 13:39 | 1543115 pods
pods's picture

Best tasting Chinese Prastic rice.


Tue, 08/09/2011 - 14:12 | 1543256 karzai_luver
karzai_luver's picture

diabetic with the most toes is more to the point.








Tue, 08/09/2011 - 12:11 | 1542826 piceridu
piceridu's picture

JQ, nice post! 

Is this even possible? 
“It is true that liberty is not free, nor is it easy. But tyranny – even varying degrees of it – is much more difficult, and much more expensive. The time has come to rein in the federal government, put it on a crash diet, and let the people keep their money and their liberty.” Ron Paul

I guess you don't need a phd to know what the fuck is going on...this guy got it right: 

Tue, 08/09/2011 - 12:36 | 1542888 mmlevine
mmlevine's picture

I agree - nice post.

And the video link!  A+ funny and true as the day is long.

Tue, 08/09/2011 - 12:40 | 1542903 Bastiat
Bastiat's picture

Great stuff!!

Tue, 08/09/2011 - 12:49 | 1542920 cranky-old-geezer
cranky-old-geezer's picture

White-collar looters, pirates, and criminals have PhDs.  

PhDs are used to build and operate Ponzi schemes.

Show me one PhD not helping keep a Ponzi scheme going.

Tue, 08/09/2011 - 12:14 | 1542835 Downtoolong
Downtoolong's picture

Yesterday, most investors ironically confirmed and admitted with what’s left of their free market rights that the best the markets now have to offer them is U.S. Treasury paper, issued by the same government that is destroying their savings with rates of return so low it guarantees their wealth will lose purchasing power over time. Of course, this works out great for the government, which will now pay even less interest for the additional borrowing and spending they plan to do, even as they and Wall Street urge people to work longer and save more. It all adds up to the biggest wealth transfer in history from the prudent to the careless. But, for how long? The grasshopper will still die after it eats the ant. At some point, I expect savers will just throw in the towel and start spending more too, which will be great for the economy in the short run, and devastating for it in the long run.

Too-Big-To-Fail? Ha! If this isn’t a failure of the financial industry I don’t know what is. Small investor to Wall Street and the government it owns – I want a divorce.

Tue, 08/09/2011 - 12:14 | 1542838 Temporalist
Temporalist's picture

Our favourite Eurozone MEP Nigel Farage:

Nigel Farage - London on Fire, So is Gold, Millions are Terrified

Tue, 08/09/2011 - 12:14 | 1542839 gwar5
gwar5's picture

The really big, important shoe to drop is when the oil countries refuse to accept USD.

More...  with the Muslim Brotherhood now taking over MENA, sucking up to them to buy more time will become more entrenched policy. Head of Iranian Red Guard is now the OPEC leader, which can't be good. All ominous outcomes on the horizon due to the destruction of the USD.   

Tue, 08/09/2011 - 13:39 | 1543113 GreenSideUp
GreenSideUp's picture

They've been working on it for a while:


And those WMDs in Iraq?  Saddam trading oil in Euros.

Tue, 08/09/2011 - 13:59 | 1543194 MachoMan
MachoMan's picture

I thought that another prophesied/claimed oil had already been priced in gold + dollars for a considerable period of time...

Tue, 08/09/2011 - 12:14 | 1542841 drink or die
drink or die's picture

I don't know...I thought Obamas speech was pretty outstanding.  It made me feel really good about myself.

Tue, 08/09/2011 - 13:19 | 1543042 Temporalist
Temporalist's picture

That was the scotch.

Tue, 08/09/2011 - 12:16 | 1542845 Piranhanoia
Piranhanoia's picture

Thanks a lot Wilbur. two legged stick insect without the brains to put peanut butter in my teeth so I would look like I was talking. Wanna know how many times I kicked the bastard pulling on my bit with a wire?   I neutered every one of em.  Couple dozen before I was finished at least.  Soon as they canceled us, I got the producer with both shoes.  He's in the wall at the studio, couldn't get the bastard out.  But I digress.

Tue, 08/09/2011 - 12:16 | 1542846 Manthong
Manthong's picture

You don't need a bankerman to tell which way the fiat goes.

Tue, 08/09/2011 - 12:16 | 1542847 tahoebumsmith
tahoebumsmith's picture

Look at where all the intervention has gotton us thus far? Nowhere... Back in the same situation we were in before the 16 TRILLION was spent. Actually other then the ability to get free money, every other economic indicator is back to 2008 levels or worse. So keep lighting the firecrackers, just save the one with the shortest fuse for last.

Tue, 08/09/2011 - 12:20 | 1542854 Caviar Emptor
Caviar Emptor's picture

Yup. GDP is back to near zero, the market is back to pre-QE2 levels but employment never rebounded (and probably degraded further), oil never returned to pre-QE2 levels, housing never rebounded, real rates are more negative and banks are in trouble again again again. 

So in their wisdom they want to try the experiment again. Harder. 

They may end up pushing the developed world over the cliff of biflation. 

Tue, 08/09/2011 - 12:18 | 1542853 Bohemian Clubber
Bohemian Clubber's picture


"Police advised residents of Notting Hill, Ladbroke Grove and Fulham to stay indoors as residents reported seeing men carrying machetes in the road. "

Tue, 08/09/2011 - 12:27 | 1542870 Caviar Emptor
Caviar Emptor's picture

Coming to a hoity-toity community near you. Visions of Russia in 1917, France in 1789, Britain when King Charles was beheaded in 1649 etc etc

Tue, 08/09/2011 - 13:30 | 1543083 V in PA
V in PA's picture

It's a shame they can't pick'em off from the bedroom window like we can.

Tue, 08/09/2011 - 13:34 | 1543096 LFMayor
LFMayor's picture

and you know them colored's love those pangas

Tue, 08/09/2011 - 12:22 | 1542858 Silver Dreamer
Silver Dreamer's picture

I cannot help but notice the strange hand gesture by Buffett in the above photo.  If you look at the other photos on the web of him, he has quite a few.  Is he a Free Mason or are his fingers triple jointed?

Tue, 08/09/2011 - 12:36 | 1542890 fuu
fuu's picture

Or he is just old and it takes more fingers than normal to grip something.  mean why would he need to flash a Mason sign to Lloyd?

Tue, 08/09/2011 - 12:58 | 1542944 Silver Dreamer
Silver Dreamer's picture

The way his fingers are crossed in that photo would not help him hold the wallet.  It is very unnatural looking.  Maybe he has RA however.  That's not a joke either.  You never know.

Tue, 08/09/2011 - 13:35 | 1543097 LFMayor
LFMayor's picture

Gangsta Disciples, bitch

Tue, 08/09/2011 - 12:23 | 1542859 g
g's picture

Phenomenal article.

Ron Paul is the man!

Tue, 08/09/2011 - 12:34 | 1542880 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's not that I have a bone to pick with Ronnie, because maybe he will ask Bernanke at the next hearing, but when he had Bernanke in his crosshairs, why did he not continue his line of questioning, by following Bernanke's ludacris "Tradition" statement with, "Then why do you loan gold out?"  He could have made it plain and simple for Americans that Bernanke uses gold to fund his ponzi, but he didn't.  Maybe he likes playing his cards close, and maybe I should not question him, as he is on the right side of the fight, but unless he goes for a TKO in the next round, I will score him a 9 out of 10 for the fight.

Tue, 08/09/2011 - 12:38 | 1542897 Temporalist
Temporalist's picture

They run out of time.  If you watch the video only a minute after that the time limit on his questioning expires. 

In response when Bernanke said "are treasuries money" RP should have said "No they are just like the FRNs and are debt issued by an institution which gold isn't."

Tue, 08/09/2011 - 12:48 | 1542917 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fair enough.  I still want a TKO, as I have no faith in any politician, even the ones I think are decent people.

Tue, 08/09/2011 - 13:48 | 1543138 Shell Game
Shell Game's picture

I have no faith in any politician, even the ones I think are decent people.

That right there is the right path, brother.

Tue, 08/09/2011 - 12:25 | 1542864 spartan117
spartan117's picture

Best horse?  So why is the USD plunging against the Swiss Franc today?  Down 3.4% today.

Tue, 08/09/2011 - 12:36 | 1542885 Shell Game
Shell Game's picture

Because it's not?  As Spitzer said above, "the Eurozone is a net creditor with no trade deficit."

Euro the last horse standing..?

Tue, 08/09/2011 - 12:32 | 1542879 kito
kito's picture

And if they become more afraid you make money, if they become less afraid you lose money


this aforementioned quote coming from the same jackass who says be "greedy when others are fearful"---if thats not going long on fear i dont know what is....

Tue, 08/09/2011 - 12:34 | 1542881 sunnydays
sunnydays's picture

Look at Standard and Poor's relationships, who was behind the downgrade.

Tue, 08/09/2011 - 12:35 | 1542882 JW n FL
JW n FL's picture

India owes Iran $4.8 Billion and has paid $1 Billion already.. How much Aid goes to India?

The United States has an embargo in Place??????? What the Fuck are those dirty fucking towel heads doing with our money? Giving it to Iran? Someone with common sense needs to clear out Washington DC of ALL the Lobby Whores and Status Quo Groomed Personalities! So that America can get itself back on track. And before everyone thinks it is JUST India! How about the Natural Gas Pipelines than go thru Turkey (coming out of Iran) that supply Europe with 40% of its Natural Gas needs? How much International Aid is Poured into Europe? How many U.S. Dollars have been wasted at the Euro / Dollar Swap Window trying to keep the Europeans from falling off a cliff? The WHOLE WORLD has it hand out to the United States for International Aid and Arms! The United States is supposed to give up 60% of its Wealth to the World so that the World will Not be as Poor as before!

Tue, 08/09/2011 - 12:42 | 1542906 Shell Game
Shell Game's picture

Lost in yesterday's fear factor, the WH pledged $105 M to Somolia.  F*cking foreign aid bleed-fest must go on..

Tue, 08/09/2011 - 13:10 | 1543000 Henry Chinaski
Henry Chinaski's picture

Not a problem.  They will print more.

That's the problem with trying to make sense of or argue policy, economics and markets now.  You can have it all... until you can't.

Tue, 08/09/2011 - 13:11 | 1543006 GreenSideUp
GreenSideUp's picture

I heard it.  WTF?  

Tue, 08/09/2011 - 13:16 | 1543032 JohnFrodo
JohnFrodo's picture

Its to expensive to give them toliet paper

Tue, 08/09/2011 - 13:44 | 1543114 Shell Game
Shell Game's picture

The late Sam Kinison has the solution to world hunger*.


*not to make fun of the human suffering over there, but nothing like a strong dose of 'political incorrectness' to lighten the mood..

Tue, 08/09/2011 - 14:01 | 1543203 AnAnonymous
AnAnonymous's picture

How is it politically incorrect in this US driven world?

Tue, 08/09/2011 - 13:47 | 1543110 V in PA
V in PA's picture

They are setting up war #5 or is it 6. Piece on CNN this weekend about blind people in Somalia (and the horrors of living there), another article this weekend about increasing violence in Somalia. Hell, the local charity down the road from me is taking donations to feed the starving in Africa (read Somalia). Last week their sign was about Haiti.

-Look for a large scale terrorist attack on American soil, conducted by Somalian Al-Qaeda. Maybe Obama can have his 9/11 moment just before reelection. That $105 million is probably finaning it.

Tue, 08/09/2011 - 14:03 | 1543214 CompassionateFascist
CompassionateFascist's picture

No. Somalia will be - if anything - another military meals-on-wheels op, like Bush 41 and Clinton did with such outstanding success. War #6 will be the Isramerican attack on Iran.

Tue, 08/09/2011 - 14:03 | 1543211 AnAnonymous
AnAnonymous's picture

If 105M$ is what is bleeding the US, well, it is just a scratch and nobody has to bother about that, lets go to sleep and tomorrow, everything will be fine...

Tue, 08/09/2011 - 12:34 | 1542883 g
g's picture

So someone explain to me how QE3 is supposed to help create jobs or help the economy? (rhetorical question) Simple fact is that it does not, it is just a subsidy for the government at the expense of the tax payer. However, I would love to hear arguments for and against. Once again really lame everyone is hanging on the word of the Bernank.

Tue, 08/09/2011 - 12:36 | 1542889 JW n FL
JW n FL's picture

Here comes the FED!

No Worries! The Hole is Safe!!

The FED will keep the Hole going!

Gold.. Down from $1,700!

Silver Down from $40!

Stock Market (Free FED Money Market Hole) UP!!!

The Money Fires are the BEST!!

Besides.. they only needed the Market to drop 25% so they could implement Quantitative Easing Part 3 which is really like Part 9.. but we are not counting anything under the $100 Billion Dollar Safe Mark. If the amount is under 100 Billion Dollars “We the Sheepish Consumers” don’t notice it or pay attention is what has been multi market tested to success.

So, lets get those Printing Presses Up and Running so the “Free Market” can pumped by the FED to make the Wall Street AAA Rated Corps (OOPS! AAA is NO! Longer a Pre-Requisite for 0.25% Loans) can get richer off of the Back Stop that is “We the Sheepeople”.

Tue, 08/09/2011 - 17:52 | 1543069 Temporalist
Temporalist's picture

They are trying to hold stocks higher to bring about the "wealth effect" so that all the pensioners and funds don't plummet making everyone in the U.S. suddenly realize there is a problem simultaneously and cause a bank run.  Also they want to keep housing prices elevated for the same wealth effect reason and if interest rates rise nobody will buy and housing will contiune its fall...they are the parachute to the whole system and they'd rather debase the currency than allow a crash/collapse in confidence but the confidence is being lost anyway as people wake up.

Tue, 08/09/2011 - 12:35 | 1542887 entendance
entendance's picture

Junk It and Start Over Again Swan Song for the Euro the euro really worth saving?


Tue, 08/09/2011 - 12:38 | 1542900 JW n FL
JW n FL's picture

How much International Aid is Poured into Europe? From the United States?

How many U.S. Dollars have been wasted at the Euro / Dollar Swap Window trying to keep the Europeans from falling off a cliff?


The WHOLE WORLD has it hand out to the United States for International Aid and Arms!

The United States is supposed to give up 60% of its Wealth to the World so that the World will Not be as Poor as before!

Tue, 08/09/2011 - 12:38 | 1542899 rosiescenario
rosiescenario's picture

.....the knacker is running a second shift....

Tue, 08/09/2011 - 12:39 | 1542901 lunaticfringe
lunaticfringe's picture

Absolutely loved this piece. I too have been witnessing Buffet 'sell out" and that makes sense.

The only way these asshats can make money is to keep you playing their game. Make no mistake about it- it is their game and you ain't gonna beat them at it. If you refuse to play their game, Warren has nobody to sell that paper to. So he has been selling out. Saying anything imaginable to keep the sheep from fleeing the game. Quadruple A rating? What a fucktard.

Sorry Warren, all you represent to me is one more lying, theiving ruling class member. Remember this- asshat. He who dies with the most toys- still dies. Muhahahah

Tue, 08/09/2011 - 12:41 | 1542907 Miss Expectations
Miss Expectations's picture

I posted this somewhere yesterday (who can keep track)...but I'd like put it here as well.

Vintage 1983 Ron Paul (3 minutes)


Tue, 08/09/2011 - 12:41 | 1542908 vegas
vegas's picture

Great post TD - you just can't get stuff like this anywhere else.

Every word is true, much to the chagrin of the MSM and political elites.

Tue, 08/09/2011 - 12:45 | 1542915 Sudden Debt
Sudden Debt's picture
  • The market is dropping because the Tea Party held the country hostage.
  • I never really understood that.... grown up people who have tea parties.... influence.... the government....

    tea parties.....



    Tue, 08/09/2011 - 12:49 | 1542919 escargot
    escargot's picture

    I was shocked by the Buffett clip from IOUSA as well, not that I gave a shit about his opinions prior to seeing it.  The American "pie always gets bigger", he said.  Either a frightening ignorance of the Second Law, or a pathetic pandering lie.  Probably both.

    Tue, 08/09/2011 - 12:50 | 1542923 upWising
    upWising's picture

    Better yet.....

    It's a whole plane load of Black Swans, each thinking s/he is the most beautiful/handsome, all of them imagining they are flying "First Class."  The whole flock of them has a terrible bout of the flu: vomiting and diarrhea and violent stomach cramps.  The plane has gone through very turbulent skies and the pilot has now lost control and the plane is dive-bombing straight down to earth. The steward/ess' attempts to placate the passenger (pigeons) with alcohol and peanuts is getting nowhere. The pilot continues to assure passengers that it is just "minor, transitory turbulence," though few of the swans can hear the announcement over the wretching of the other "passengers" all around them.  The FAA folks in the control tower have either been laid off, or are asleep in front of their video games.  

    Strike up the band: "Oh say, can you see.....?"

    Let's move the National Capitol to Omaha.

    FAITH IN THE SYSTEM> Jesus Loves America Best.

    Tue, 08/09/2011 - 13:42 | 1542927 Translational Lift
    Translational Lift's picture

    Oracle of Obama Omaha..........

    This turkey has lived long past his usefulness......

    Tue, 08/09/2011 - 12:52 | 1542929 Gringo Viejo
    Gringo Viejo's picture

    Vested interests, case in point: I've long been a fan of Laura Ingraham who has championed the Tea Party at every turn. Yet when 22 members of the House voted against Boehner's bill, she was screeching that (the 22) were naive, they had no idea what they were doing, they were going to collapse the economy.

    She was all for them...on paper....but when they stood up to effect some real change....she backed up and ate cheese.

    I no longer listen to her program.

    Tue, 08/09/2011 - 13:14 | 1543022 JohnFrodo
    JohnFrodo's picture

    I stopped when she called Santorium a friend

    Tue, 08/09/2011 - 13:29 | 1543078 Temporalist
    Temporalist's picture

    That you could actually watch that horrible woman to begin with is amazing.

    Tue, 08/09/2011 - 13:53 | 1543166 pods
    pods's picture

    Ever since realizing what life is like I only turn on the radio to hear the news bites or reaction of the sheep.

    Yesterday was about how everything would have been fine if we all just got along and sold our children further into slavery.  I have come to the conclusion that 95%+ of our population is not honest enough to even think about what the real problem is.  

    They are so caught up in the left-right paradigm BS I can no longer listen to the radio for pleasure or information.



    Tue, 08/09/2011 - 19:04 | 1544473 Temporalist
    Temporalist's picture

    Yea pods.  People don't understand honesty at all anymore especially when it comes to themselves and the slimey residue of that is hyporcisy or whatever it's called - cognitive dissonance, normalcy bias, rationalization...

    This above all: to thine own self be true,
    And it must follow, as the night the day,
    Thou canst not then be false to any man.


    Tue, 08/09/2011 - 12:53 | 1542935 besnook
    besnook's picture

    and this is why ron paul will never be potus. he does not play well with others. if he were greedy, power hungry ans amoral he would be president today.

    Tue, 08/09/2011 - 13:04 | 1542970 GreenSideUp
    GreenSideUp's picture

    Fantastic article and I LOVE that final quote!!!  Ron Paul FTW!


    I heard a clip of Ron Paul explaining how the default will occur and that "we've" chosen printing money to pay the bills.  He said, "the [SS, etc.] checks will go out; they just won't buy anything".  I think that's something J6P can understand very clearly.  I've tried this quote on a couple of people on SS, and you should have seen their eyes widen...

    Tue, 08/09/2011 - 13:05 | 1542977 Arch Duke Ferdinand
    Arch Duke Ferdinand's picture

    *****Six Volcanic Plumes in California and Nevada.....

    *****Pacific Northwest Experiencing Earthquake Activity.....

    *****OT: Film Festival Short

    The Creek...Reality gone abstracted.....

    Tue, 08/09/2011 - 13:06 | 1542979 Inspector Bird
    Inspector Bird's picture

    If the market was 40% over value based on normalized metrics, then it is 40% more than what would typically be expected - correct?   But if you take the 2 "Lows" over the course of the DJIA, going as far back as 1929, and increase each year by roughly 7% (a relatively small annual increase), you'll see that the DJIA "low" is somewhere around 7,600 today.  3 years ago, I had said 6,600 was about where the market should bounce, since that was the straight line "low" point.  It went a bit lower, but I was generally correct.  As a result, I'm willing to bet (barring an altogether amazing and jarring breakdown across the board in every economic sector), the next "low" will be around 7,600.  7,600 is just above the 40% "overvalued" mark mentioned in this article.


    As a result, I don't see the market as 40% overvalued.  Possibly 25% overvalued - meaning there is still a ways to drop.  I'm frankly amazed it went over 10,000 a while back.  But I also realized Pumpin' Ben is doing a job on values.  He's artificially inflated the market, and most people are unaware of this.

    Regardless, prices in a pumped up market tend to go lower than the median line, so there is no reason why 7,380-7,600 can't be the "bottom".  Again, barring a massive economic dislocation.

    Tue, 08/09/2011 - 13:25 | 1543067 Bay Area Guy
    Bay Area Guy's picture

    Got a question for everyone.  I'm relatively new at this, so please bear with me.  I understand why QE3 will be a disaster.  After all, the first two QE's worked so well.  That being said, I don't understand why anyone would think further debasement of the curreny will work.  Ostensibly, you devalue your currency to make your exports appear to be cheaper to other countries and make their imports more expensive.  Well, the last time I checked, the US was just barely a net importer (barely meaning likely a larger trade deficit than the rest of the world combined).  In short, we don't make a lot of stuff, but we buy a lot of stuff.  Doesn't debasement of the currency hurt a non-exporting country like ours even more by artificially making imported good more expensive?   If that is the case, then why wouldn't a new importing country want to strengthen its currency, thereby making imports less expensive in that country's currency?  What am I missing in trying to figure out this race to the bottom?

    Tue, 08/09/2011 - 13:44 | 1543128 JimBobOMG
    JimBobOMG's picture

    I have yet to figure out why my wife owns so many shoes and she never understood why I own gold. Just ride it out yo.

    Tue, 08/09/2011 - 14:21 | 1543275 CompassionateFascist
    CompassionateFascist's picture

    Theoretically, debasing the $ makes US exports cheaper in terms of the currency of the country being exported to. Period. Also, eyewash. It's not about about international trade anymore. It's about keeping the domestic debt bomb from exploding for yet easing debt service, raising a not-so-hidden tax called inflation, and so on.

    Tue, 08/09/2011 - 14:36 | 1543321 Bay Area Guy
    Bay Area Guy's picture

    Thank you CF.  That was an explanation I could actually understand.

    Tue, 08/09/2011 - 14:12 | 1543255 CompassionateFascist
    CompassionateFascist's picture

    Good piece, but as usual the prospective debt increase #'s are way off. Just figure +$2 trillion/year and you've got it about right. Counting the bad paper at the gov't mortgage agencies, our ND is ALREADY closing in on $20 trillion and, at the rate DC is burning thru the recent Debt Ceiling increase, they'll exhaust both tranches by mid-2012. Very cool.

    Tue, 08/09/2011 - 15:45 | 1543589 jmc8888
    jmc8888's picture

    This dude keeps being an idiot.  I'm not going to rewrite the great piece because of being fucking logged out.  Shit happens.

    Austrain = FAIL

    Keynesian = FAIL

    BOth are monetary schools of non-thought

    America was built as an ANTI-MONETARY zone.

    Patriots don't follow FOREIGN economic ideologies.  That's what AUSTRAIN MONETARISM IS!!!!!

    Tea party (nuts on your face party) is stupid, corrupted, and just because someone joined a bankster party, doesn't mean they can kick out the banksters and say, quit corrupting us!  No, why don't you go somewhere else?


    American Credit System and Glass Steagall


    Print, Cut, Tax for fraud.  ALl of these are TERRORIZING the american people.  So if your idiot party want to cut, print, or tax...then you are a part of a terrorist movement.  Terrorizing the american people, to pay off BANKSTER FRAUDULENT DEBT

    The way to end this madness is to cancel the frauds throughout the system.  Starting with the fraudulent debts, via Glass-Steagall

    I swear soon the banksters are going to create another 'grass roots' party named the 'fuck my ass' party (to complement the nuts on face party) and people there will call themselves partriots for following another foreign economic ideology.

    Gold isn't wealth, Fiat isn't wealth, as no units of account are wealth.  Wealth is the stuff you trade that shit for.  Wealth is the ability to improve on this, do it easier, expand it, spread it farther, etc.  What will a pile of gold do for you on the Planet of the Apes? (this doesn't make me anti-gold, I'm just saying there is something more important..that is having a physical economy!)

    Besides who cares about a stupid party? Thomas Jefferson warned us about parties.  It's much more important to judge things on ideas and positions, not parties.  So while others focus on being part of a bullshit monetary party that claims to be patriotic, I'll focus on the ideas and positions that actually are!

    THis is the very condensed version as the logout destroyed my other post which was much more detailed and better.



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