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Guest Post: The Big Print Is Coming

Tyler Durden's picture




 

Submitted by Mike Krieger of Libertyblitzkrieg

The Big Print Is Coming

We are discreet sheep; we wait to see how the drove is going, and then go with the drove. We have two opinions: one private, which we are afraid to express; and another one – the one we use – which we force ourselves to wear to please Mrs. Grundy, until habit makes us comfortable in it, and the custom of defending it presently makes us love it, adore it, and forget how pitifully we came by it. Look at it in politics.
- Mark Twain

Humanity’s most valuable assets have been the non-conformists.  Were it not for the non-conformists, he who refuses to be satisfied to go along with the continuance of things as they are, and insists upon attempting to find new ways of bettering things, the world would have known little progress, indeed.
- Josiah William Gitt

The media I’ve had a lot to do with is lazy.  We fed them and they ate it every day.
- Michael Deaver (Former top aide to President Reagan)


Has The Fed Waited Too Long?

Those that know me understand clear as crystal that I don’t approve of massive money printing.  I think it is theft, plain and simple, and represents an egregiously deceptive manner of transferring wealth from the poor to the wealthy and from the productive to parasitic financial oligarchs.  That being said, the world we live in is being led by a bunch of crooked banksters and the Central Planners that do their bidding.  At the top of the Central Planning global ponzi pyramid, is our very own Federal Reserve, headed by master Keynesian magician, the Wizard of Eccles, Ben Bernanke.  For the vast majority of 2012, the Federal Reserve has been playing a very, very dangerous game.  This game has been to pretend that they will not be printing any more money in an attempt to get commodity prices down as low as possible before they proceed with the inevitable.  While they have done this on a smaller scale many times in the past, this particular game of chicken has in my opinion gone dangerously wrong.  You see, ever since the 2008 debacle the Fed has been quite aggressive and more or less “ahead of the curve” when it has come to feeding new liquidity into the system…until now.

All of the prior programs were ready to go at the first hint of economic weakness.  Even if they weren’t launched right away, the intention to print was made clear and this stabilized the system in the short-term.  Not this time.  This time the Fed realized that their models weren’t working.  Employment continued to be weak as inflation picked up.  Everyone was starting to complain about gasoline and the public was increasingly making the connection between Central Banking/fiat money and the rise in their cost of living.  Occupy Wall Street emerged on the scene.  All of these things put Bernanke and all his other vampire brethren on the defensive, and indeed in a box.  They increasingly had to rely on less effective, more opaque means of providing liquidity.  The Fed swaps to Europe was one example.  The European LTRO was another.  All of this has been done and all of it has now proven to be a failure.  The periphery of Europe is in mired in an all out Depression and many of the BRIC countries are much closer to being in a collapse than many want to admit.  That said, there is still this consensus that the U.S. is experiencing decent growth that will continue and perhaps accelerate into 2H12.  Not only do I not agree with this, I think there is a good chance the U.S. is now experiencing negative growth.  I think May represents the first month of real domestic weakness.

Stocks are Collapsing on Bad News                        

What I have noticed this quarter more than in any other in recent memory is that names are vaporizing on even the hint of bad news.  Let me show you some frightening examples.

Fossil  

 

Dell

 

Cisco Systems

 

JC Penney

 

If the market was confident that this was just a blip I do not think these stocks would have responded this way and then barely rebounded.  Similarly, there are many names that have put up strong results, only to have sold off on the news.  HD, COH and RL come to mind.  To me this is evidence of the market sniffing out economic weakness ahead, and more importantly a Fed that is behind the curve for the first time since 2008.

The BIG Print is Coming

Momentum is a strange thing in general, and social experiments as large and complex as massive economic systems are not immune to its mysterious ways.  Once momentum gets going it is extremely difficult if not impossible to reverse in the near-term.  This is why I have been pounding the table on China not doing anything as things unravel over there.  In waiting so long to try to respond to their major slowdown, they have now seriously risked a hard landing, unless they have a plan (this is not clear as of yet) as I outlined in last week’s piece China Better Have a Plan.

Here in the U.S., I think that The Bernank’s plan was to pretend they didn’t need to print more money, get commodity prices down and then hope that the economy would respond favorably to that development.  This wouldn’t have negated the need for more printing; however, it would have bought time and allowed for a potentially lesser degree of action.  Instead, what has happened is that the global ponzi is completely and totally incapable of holding itself together without consistent and increasingly large infusions of Central Bank money.  The debt burden is too large, the mal-investments too pervasive, the corruption too systemic.  The whole house of cards that is the global economy will vanish into dust rather quickly without more and more printing.  So what do you think they are going to do?

If I am correct, and the U.S. economy itself is now in the early stages of what will probably turn into a serious economic slowdown, then it will not be easily stopped with incremental Central Bank policies.  The fact that they have waited this long and the fact that the global economy is in the midst of a serious slowdown tells me one thing.  They are way behind the curve and by the time they realize this it will be too late to stem the momentum.  That said, I do expect them to respond and the fact that things will have gotten much worse than they expected will mean a major response.  I’m not talking operation twist part deux.  I mean a serious print.  Potentially the BIG ONE.

In this sort of scenario, the inflation hedges will sniff it out first.  So I would expect the precious metals to bottom well before everything else does.  In fact, we could be looking at a situation where the metals and their shares rebound sharply while the U.S. equity markets continue to decline.  This could last many months.  I want to point out that the GDX bottomed in October 2008 and was up 100% before the S&P 500 bottomed in March 2009.  So over a five month period the GDX doubled while the SPX declined 25%.  Don’t think that can happen again?

Peace and wisdom,

Mike

 

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Thu, 05/24/2012 - 16:36 | 2460129 penexpers
penexpers's picture

Fuck you, Bernanke!

Thu, 05/24/2012 - 16:41 | 2460156 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

"We are all here to do, what we are all here to do" (the Oracle, Matrix)

He's going to make a lot of us well off;)

Thu, 05/24/2012 - 17:04 | 2460233 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Krieger, tell your buddy Max Keiser to consider using the Buy Silver - Crash JPM idea, will ya?  Thx

-LH

Thu, 05/24/2012 - 23:45 | 2461244 Bicycle Repairman
Bicycle Repairman's picture

Krieger repeats my current meme.  Bernanke had better get printing soon.  Deflation is getting a grip on this economy.  If Bernanke thinks he print any old time, he is wrong.  He has one foot on the "deflation banana peel" right now.  Once you pass the point of no return the size of the necessary print will mean immediate hyper-inflation.  Annual inflation of 5% to 10% is necessary to save the status quo.  So let's get on with it. What's that?  Printing will cost Obama his job?  Well let's just see now:  bye bye Obama or deflationary collapse.  I guess we'll just have to tough it out without the Mocha Messiah.

Fri, 05/25/2012 - 09:12 | 2461872 FEDbuster
FEDbuster's picture

As Marc Faber has said many times, "Mr. Bernake will print, it's the only thing he knows how to do."

Bernake has said, "there will not be a deflationary depression on my watch as FED chairman".

Printing and devaluation benefits debtors, the largest debtor nation in the world is?  Yes, Bernake will continue to print.  They will rename it, do much of it in secret, twists and shell games, but they will print.  Zimbabwenomics

Fri, 05/25/2012 - 14:09 | 2463152 Bicycle Repairman
Bicycle Repairman's picture

It is not just a print or not print decision.  Timing matters a great deal.  If I'm the Bernanke, I'm going to be pro-active about avoiding deflation and the subsequent hyper-inflation when I try to print my way out.  Start.Printing.Now.

Thu, 05/24/2012 - 17:09 | 2460238 adr
adr's picture

Is it me or does the redhead look a hell of a lot like Clinton. Maybe that is why he was there posing with them. Visiting one of the couple hundred children he fathered while circling the globe. 

Thu, 05/24/2012 - 17:15 | 2460257 Marginal Call
Marginal Call's picture

Would have been a better pic if he had a cigar.

Thu, 05/24/2012 - 20:09 | 2460807 The Big Ching-aso
The Big Ching-aso's picture

 

 

"To print, or not to print,  that is the insane question:...."

-Bernankespeare

Thu, 05/24/2012 - 20:39 | 2460879 Michael
Michael's picture

If you desired complete and total destruction of the entire financial structure and all major banking institutions on the entire planet, you would know why I must have the Federal Reserve print QE to infinity, but then again the plan is far enough along that it may only take less than another trillion.

Just do it Bernank, make my day.

Thu, 05/24/2012 - 17:55 | 2460415 NotApplicable
NotApplicable's picture

Oops... that's gonna leave a stain.

Thu, 05/24/2012 - 19:06 | 2460640 Rubbish
Rubbish's picture

I have a BIG FAT ONE...

Fri, 05/25/2012 - 05:54 | 2461570 Disenchanted
Disenchanted's picture

 

 

"Clinton Porn"

 

Must have been a good day for the local cigar shop...

Thu, 05/24/2012 - 16:58 | 2460212 Colombian Gringo
Colombian Gringo's picture

The big  Ben Shalom Bernanke dick is to be stuck into an asshole near you.

Thu, 05/24/2012 - 17:08 | 2460237 LeBalance
LeBalance's picture

please discuss when it was removed.

Thu, 05/24/2012 - 16:45 | 2460168 Silver Bug
Silver Bug's picture

It is QE to infinity, fasten your seat belts.

 

http://ericsprott.blogspot.ca/

Thu, 05/24/2012 - 19:05 | 2460637 Ratscam
Ratscam's picture

the big print is coming AFTER the Bilderberg meeting.
are you guys paying any attention at all to the big boys?

Thu, 05/24/2012 - 16:49 | 2460182 CPL
CPL's picture

That's what the centrals want, to get you pissed, give them an excuse to roll out body wagons.  Choose to not work for them, not lift a single finger, if they want it all.  Then they can do their own work.

 

Let the man that talks about building something swing the hammer as well.

Thu, 05/24/2012 - 16:55 | 2460197 LongSoupLine
LongSoupLine's picture

 

 

 

but, but the FDIC just today said the banks are kicking ass.  record profits, huge capital reserves.  It's all great here in Oz!

Thu, 05/24/2012 - 16:59 | 2460219 CPL
CPL's picture

until it isn't

Thu, 05/24/2012 - 18:22 | 2460514 SheepDog-One
SheepDog-One's picture

Right....WHAT 'crisis'? Everyone is saying things are good to great, yet we need the mother of all prints in world record shattering amounts? Let the FED stop being such pussies if thats what they want and let the S&P fall to 900, then they can talk.

Thu, 05/24/2012 - 16:55 | 2460201 SimpleSimon
SimpleSimon's picture

I hope you get raped by a herd of bull elephants, Bernanke!  Repeatedly!

And then a herd of cow elephants dump all over you.  Repeatedly.

Thu, 05/24/2012 - 17:11 | 2460240 garypaul
garypaul's picture

This article is mostly jazz. The markets closed up today. How can there be a big print when there is really no big downward pressure? BTW non-conformists are also those who take something that's working great and proceed to ruin it. Just an example of the quality of logic in this article.

Thu, 05/24/2012 - 21:51 | 2461041 Crisismode
Crisismode's picture

You clearly lack the brains God gave to a brick.

 

Go peddle your useless drivel elsewhere.

 

 

Thu, 05/24/2012 - 22:01 | 2461066 GlobalCtzn
GlobalCtzn's picture

"something that's working great"

 

Just what in hell might that be?

 

Your first sentence sounds eerily like Bill O'Reilly...............

Thu, 05/24/2012 - 17:33 | 2460330 Dingleberry
Dingleberry's picture

QE to infinitee, bitchez!

Fri, 05/25/2012 - 05:17 | 2461551 TWSceptic
TWSceptic's picture

Shut up and let him do his job! QE = good for you.

Thu, 05/24/2012 - 16:39 | 2460144 TalibKweli
TalibKweli's picture

23 and just bought 2 ounces of gold

The percentage who don't understand is higher than the percentage who do
Check yourself, what percentage is you?

Thu, 05/24/2012 - 16:39 | 2460145 TalibKweli
TalibKweli's picture

ignore

Thu, 05/24/2012 - 16:40 | 2460150 vast-dom
vast-dom's picture

the key word: momentum. if they QE in mid-slide it could expose their gambit.....and that could exacerbate the spiral.....

Thu, 05/24/2012 - 16:40 | 2460154 RiverRoad
RiverRoad's picture

The plan was to let Big Oil get their money up front so they could have it down for Obama's reelection. 

Thu, 05/24/2012 - 16:40 | 2460155 Sequitur
Sequitur's picture

The time has come. Execute order 66.

- John Corzine

Thu, 05/24/2012 - 21:47 | 2461035 sessinpo
sessinpo's picture

I would refer to another 66 to execute but 66 isn't large enough to cover all the politicians that need some attention.

Thu, 05/24/2012 - 16:41 | 2460158 Madcow
Madcow's picture

RUMORS of the big print are coming. and will keep coming.  

but it will never happen.  hyperinflation = game over for the status quo. 

instead, we'll have Global Japan - where assets and economic activity fall for decades - and the banks can slowly foreclose on RE, companies, farms, etc across the globe.

when push comes to shove, governemnts will evicerate spending on social programs, miltary, whatever it takes. 

so long as you have no debt, and have a couple $ million in cash - and youre not in a big city with a large urban population and no food production skills, you'll be okay.

Thu, 05/24/2012 - 16:45 | 2460167 SheepDog-One
SheepDog-One's picture

Hell, who DOESN'T have no debt and a few million in cash lyin around?

Thu, 05/24/2012 - 18:30 | 2460539 ljag
ljag's picture

Me. I only have 1.6 but I got that crib in the woods where even my neighbors were unaware of its existance until the previous owner had to have an auction ( I shudda just bot it all thereby keeping the secret from getting out........but like I said.........I only got 1.6)

Thu, 05/24/2012 - 21:53 | 2461048 Crisismode
Crisismode's picture

You are a complete jerk.

 

But, you know that already.

 

 

Thu, 05/24/2012 - 16:51 | 2460188 TideFighter
TideFighter's picture

However much they print, they will revise the prior month's totals higher and say that this month they printed less and things seem to be stabilizing if we are printing less, blah, blah, blah. You will never know how much has been printed, or will be printed, for fucking ever, bithez. 

Thu, 05/24/2012 - 16:55 | 2460198 jus_lite_reading
jus_lite_reading's picture

>>"RUMORS of the big print are coming. and will keep coming.  

but it will never happen."<<

Do you really have madcow disease? The BIG print MUST occur because the MATH DICTATES it MUST OCCUR. This is not some game of chicken or guess who. Do you understand the implications of NOT adding more fiat to the system at this point? Do you grasp the meaning of "passing the point of no return" when they began the first round of QE? It was already the beginning of the end then when they mad that choice. There is no stopping it now. The best they can hope for now is to buy a little time...

>>"hyperinflation = game over for the status quo."<<

True, that is why they are implementing incremental monetization of debt, as slowly as possible... like holding back the three Gorges Dam with your pinky finger...

>>"instead, we'll have Global Japan - where assets and economic activity fall for decades - and the banks can slowly foreclose on RE, companies, farms, etc across the globe."<<

No. The pain will be so severe even the fat man in the Lazy-boy will grab his pitch fork...

>>"when push comes to shove, governemnts will evicerate spending on social programs, miltary, whatever it takes."<<

They are doing this now in the US. As you can see, at this point in the game of the ponzi, austerity cause more problems than more spending. Spending at this juncture is the lesser of two evils. 

>>"so long as you have no debt, and have a couple $ million in cash - and youre not in a big city with a large urban population and no food production skills, you'll be okay."<<

LMAO!! Consumer debt won't matter really. Both ways, nobody is paying anyone back. And have "a couple $ million" (ROTFLMAO!!) won't buy you jack shit when the decay really spreads. Your only chance is gold, silver, guns and some useful survival tools and living off the grid as much as possible. In the end, the survival rate for everyone drops to zero... 

GAME OVER


Thu, 05/24/2012 - 18:00 | 2460439 WatchingIgnorance
WatchingIgnorance's picture

Thank you JLR. People just don't seem to grasp the concept that you can not grow infinitely in a finite universe.

Welcome to the world of everyone owing everyone and no one has any good capital left to leverage.

Debt saturation bitchez!

Thu, 05/24/2012 - 21:19 | 2460982 Xkwisetly Paneful
Xkwisetly Paneful's picture

The most likely outcome is between the two and if that is obvious to a complete moron like myself it should be obvious to everyone else as well.

Fri, 05/25/2012 - 01:53 | 2461413 THX 1178
THX 1178's picture

Yes-- either deflate and monstrous crash or print/inflate and monstrous calamity. There is not one hedge against this. Or something like that.

Thu, 05/24/2012 - 17:00 | 2460220 tmosley
tmosley's picture

When did the printing stop?

The big print is already here.  It's just they aren't saying anything about it.  This is the functional equivalent to Wile E Coyote not looking down through the dust cloud.

But he never turns around and walks back to solid ground, does he?  Always, he slowly looks down, makes a nice little sign for the audience, maybe sticks a hand down to feel that there is no ground there, then falls, falls, falls until he goes *poof* at the bottom.

Thu, 05/24/2012 - 19:50 | 2460764 hamurobby
hamurobby's picture

Thats right.

Thu, 05/24/2012 - 17:05 | 2460230 Dr. No
Dr. No's picture

I agree with you.  The FED is not controlled by the government.  The goverment's tab is not payable.  Currently the FED is paying the tab through money printing.  Once inflation takes off, will they continue to pay the government?  My guess is no.  They will stop the presses and the government will need to decide who gets paid and who doesnt.

Since the FED is controlled by the TBTF, they will protect their own interests.  The gov will need to fend for themselves.

Thu, 05/24/2012 - 17:15 | 2460255 MachoMan
MachoMan's picture

If the FED will not print for the government, then the government will be forced to reveal who runs bartertown and will print for itself (dismantling or usurping the FED).  [while also probably demonizing the previous figureheads of the FED].

Thu, 05/24/2012 - 17:32 | 2460326 Dr. No
Dr. No's picture

The tennicles of the FED run deep.  Lets say the government revokes the FEDs monopoly (that in its self is far-fetched since the people who allow the monoply are paid off by the FED) and start printing their own money ("greenbacks").  They will quickly print a bunch to pay off their debts.  Meanwhile as the greenback looses power, people will turn to alternative currency to store wealth.  Lets say Chase issues a special "bearer bond" for Chase account holders.  This "bearer bond" stores value since Chase is careful about the reckless printing.  meanwile Greenbacks are laughed at.  Cant happen?  Just check out US currency history circa 1800's.

Fri, 05/25/2012 - 09:59 | 2462024 MachoMan
MachoMan's picture

Everyone is jockeying to find alternative stores of wealth as well as mediums of exchange, despite the "independent" FED still being in the picture.  I'm not sure "who" does the printing is any relevant concern to anyone facing dilution and decreases in purchasing power.

Thu, 05/24/2012 - 17:22 | 2460284 Marginal Call
Marginal Call's picture

The parasite cannot live without a host.

 

The gov. can live without the fed.  They have an army and stuff, and own the printing presses anyways.  The fed?  They want to take their ball and go home?  The gov can arrest/kill/bomb/tell the public the truth about them.

Thu, 05/24/2012 - 17:39 | 2460353 Dr. No
Dr. No's picture

Who is the parasite and who is the host?

Thu, 05/24/2012 - 21:51 | 2461043 sessinpo
sessinpo's picture

The way I see it, the tax paying citizen is the host. The government and FRB are both parasites.

Thu, 05/24/2012 - 17:32 | 2460324 spinone
spinone's picture

The FED is just a bank.  A bank loaded up with bad assets.  Banks go bankrupt.  The owners will set up a new bank.

Thu, 05/24/2012 - 17:16 | 2460253 Caviar Emptor
Caviar Emptor's picture

@Madcow: Yes! That's plan A. Japanification but without the beneift of 1990s prices for energy, raw materials and labor from places in China that even the Chinese had never heard of back then. That's biflation.

Yes, RE will deflate away for decades even as interest rates go negative. One economist in the media today wrote how eerie it is that Germany's interest rates are plunging just like Japan's did all those many years ago and now the spread between them is a sliver. 

Neofeudalism is one possible outcome as the middle class revert to the medieval practise of indenturing children into domestic service, religious orders and the military in return for some subsistence pay. Arranged marriages will flourish once again as families bargain for goods in exchange for daughters. 

But there are other possible outcomes too including a grand unifying theme-based globalist oligopoly. 

Thu, 05/24/2012 - 17:30 | 2460318 SemperFord
SemperFord's picture

How does it really hurt them if they can print TP to buy gold so if a new gold backed curremcy is made they will have tons of money. As the years go by they will then get rid of the gold standard and another paper bubble IMHO.

Thu, 05/24/2012 - 17:39 | 2460351 ElvisDog
ElvisDog's picture

I agree, Madcow. Printing, printing, printing, blah, blah, blah. But unless they figure out a way to send the printing towards wage inflation (which they haven't for the past 10 years) then printing makes the situation worse. If this alleged printing results in stagnant wages but $10 per gallon gas and $10 per loaf of bread there will be a revolution.

TPTB absolutely will not print on a massive scale. What they want is to slowly but steadily bleed the middle class of wealth while giving the masses just enough to keep them going.

Thu, 05/24/2012 - 19:19 | 2460679 Rubbish
Rubbish's picture

A loaf of bread costs under .50 cents if you get off your ass and make it. Tastes like a million bucks too.

Thu, 05/24/2012 - 16:41 | 2460159 Eireann go Brach
Eireann go Brach's picture

Hold on, Joe Biden needs to call Jon to get this message approved, Jon Corzine that is, because Jon knows the economy, and when we have a problem that is what we do, we call Jon! And that is why Jon is the smartest guy in the room!

Thu, 05/24/2012 - 16:43 | 2460166 DosZap
DosZap's picture

Hold on, Joe Biden needs to call Jon to get this message approved, Jon Corzine that is, because Jon knows the economy, and when we have a problem that is what we do, we call Jon! And that is why Jon is the smartest guy in the room!

 

He's too worried that Hillary is tasking his slot, TBA................

Thu, 05/24/2012 - 16:49 | 2460181 MsCreant
MsCreant's picture

"tasking his slot"

Prostate massage? 

Thu, 05/24/2012 - 17:01 | 2460223 Ned Zeppelin
Ned Zeppelin's picture

LOL +1

Thu, 05/24/2012 - 17:08 | 2460236 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

OK I spit on my monitor with that one...

I suppose we'll see who's invited to the Bilderburg mtg in VA. See if BO is "in the vicinity or not". Hillary's been playing this game a long time, wouldn't count her out.

Thu, 05/24/2012 - 18:17 | 2460498 Calmyourself
Calmyourself's picture

MSC, Damn girl we have to hang out..

Thu, 05/24/2012 - 16:42 | 2460160 DaveyJones
DaveyJones's picture

Buy land, they're not making anymore - Mark Twain

Thu, 05/24/2012 - 16:53 | 2460191 Troll Magnet
Troll Magnet's picture

Buy weed, you'll need it all day everyday - Troll Magnet

Thu, 05/24/2012 - 17:57 | 2460425 NotApplicable
NotApplicable's picture

Dre, dat you?

Thu, 05/24/2012 - 17:05 | 2460234 gaoptimize
gaoptimize's picture

Go to the south east side of the Big Island of Hawaii.  Mark Twain knew better:  On seeing Kilauea in 1866, enthusiastically wrote, "Here was room for the imagination to work!"

Thu, 05/24/2012 - 17:10 | 2460241 DosZap
DosZap's picture

Buy land, they're not making anymore - Mark Twain

Unfortunatley, you will not be able to OWN property, ever.Simply renters......................

Thu, 05/24/2012 - 19:58 | 2460780 Overfed
Overfed's picture

Alloidal title is more valuable and rare than any PM. Sell the land for gold, 'cause you ain't gettin' alloidal in these times.

Thu, 05/24/2012 - 16:43 | 2460161 DormRoom
DormRoom's picture

To put things in perspective.  It's been 4 years since the financial crisis, and the US economy is still sh*t, despite trillions & trillions in easing.

 

4 years after the New Deal the US economy was well on its way to a recovery.  One of the key differences?  Too Big To Fail Banks, and the disproportionate control they have over USD, and flows.  They are basically a shadow FMOC, given all the USD they control.

Thu, 05/24/2012 - 17:18 | 2460266 Assetman
Assetman's picture

But the stock market is up... and that will increase confidence and make the economy grow.

And that's how Bernanke thinks.

I kid you not.

Thu, 05/24/2012 - 17:43 | 2460366 moldygoat
moldygoat's picture

And its working. At least the confidence part. If the people with jobs start to worry and stop spending, it sure as shit would be worse. Imagine what the world would be like if everyone told the truth. I dont think I want to know really, not now. I guess thats why TPTB are legalizing propaganda.

Its getting more interesting everyday, thats for sure!

Thu, 05/24/2012 - 22:00 | 2461064 DaveyJones
DaveyJones's picture

you're giving him too much non criminal credit. I think he thinks like his old employers

Thu, 05/24/2012 - 17:23 | 2460290 MachoMan
MachoMan's picture

What is it that we need to build or prepare for to create work?  If military hegemony has tossed aside true global conflict, then where does the labor force slack change?  Where does oil fit into your comparison? 

It also matters WHERE the conterfeit money is thrown...  if you throw it to banks, then banks will control the flow...  if you throw it to J6P via make work programs, then J6P blows it and things heat up.  Things will heat up anyway as confidence in the currency erodes, but I think you're trying to compare apples to oranges. 

The fact that there has been settlement after settlement and no notable criminal convictions says more about putting things in perspective than any historical comparison.  (I'll throw suspension of mark to market or any rudimentary accounting as being another top culprit).

Thu, 05/24/2012 - 17:32 | 2460328 Sophist Economicus
Sophist Economicus's picture

I think you better check your history. The last depression didn't end till the start of WWII

The 'new deal' sucked moose cock

Fri, 05/25/2012 - 02:05 | 2461434 Future Jim
Future Jim's picture

Yeah, things were great during WWII.

Thu, 05/24/2012 - 16:43 | 2460162 RiverRoad
RiverRoad's picture

Seems the plan is to keep printing until they've put back all the money that was lost, except the losses keep growing; like a dog chasing it's tail. 

Thu, 05/24/2012 - 18:53 | 2460606 Talleyrand
Talleyrand's picture

didn't end 'til Roosevelt was gone - as in dead

Thu, 05/24/2012 - 16:43 | 2460163 ArkansasAngie
ArkansasAngie's picture

The hair on the back of my neck is definitely telling me ... keep your head down and your powder dry.  Mark the market may come true even if the banksters don't want it to.

Thu, 05/24/2012 - 16:43 | 2460164 jus_lite_reading
jus_lite_reading's picture

The BIG ONE... aka $4 TRILLION in add'l "liquidity" via every spigot they have at their disposal according to my calculations..

It will be bloody...

It will be global... as the second and final round of "let's see who can devalue their money faster" begins...

Game over...

Thu, 05/24/2012 - 17:22 | 2460286 Assetman
Assetman's picture

Bernanke himself was quoted in 2009 that the Fed could bring it's balance sheet up to $9 trillion before they run into internal stresses, unintended consequences be damned.

So while $4 trillion in balance sheet expansion may be the practical capacity for the "Big One", the Fed does have the actual capacity to do even more.

Scary, isn't it?

Thu, 05/24/2012 - 17:31 | 2460320 RiverRoad
RiverRoad's picture

Fer sure a massive reset waits in the wings.

Thu, 05/24/2012 - 20:15 | 2460821 delacroix
delacroix's picture

europe alone needs more than 4 trillion

Thu, 05/24/2012 - 16:51 | 2460165 SheepDog-One
SheepDog-One's picture

Sorry Mike I dont believe for a minute 'The big print' is coming at all, but theyre very happy to let everyone keep believing its just around the corner so the rumors of some massive free money gift will continue. Its all they've got.

Thu, 05/24/2012 - 16:53 | 2460193 Quintus
Quintus's picture

Soooo, having spent 4 years propping everything up they're just going to say 'Fuck it' and let everything collapse?

Why?

Thu, 05/24/2012 - 17:25 | 2460259 DosZap
DosZap's picture

Soooo, having spent 4 years propping everything up they're just going to say 'Fuck it' and let everything collapse?

Why?

To make sure they had time to train, and build det facilities for all us peons.

While they milked us DRY................Can't have a NWO, unless you have TOTAL control.

Thu, 05/24/2012 - 17:34 | 2460335 blueridgeviews
blueridgeviews's picture

I forget the exact figure but there is somethhing like 1 billion guns in the hands of average Americans. Good luck trying to get control of that. Even the Soviets knew what a problem they would have facing that many armed citizens never mind the military.

Thu, 05/24/2012 - 18:14 | 2460483 ZeroAvatar
ZeroAvatar's picture

"A rifle without ammunition makes a great club".   (Unknown)

 

I recall paying $10.00 for a 500-round brick of 22 ammo, about 10 years ago.  The last 4-5 years?  $20.00. 

Yesterday, a brick 'on sale' was $27.00. 

 

When Berskanke 'prints the BIG one', ammo will go through the roof!  Also, my supplier said last week .223 ammo

is getting hard to come by. 

 

Now, what if O'bummer decides to disallow ammo purchases by J6P?   THIS precious metal (pb)  is ONLY going to

get more expensive, if it can be had at all.  STOCK UP!

Thu, 05/24/2012 - 18:21 | 2460512 Calmyourself
Calmyourself's picture

Fleet Farm  525 rd brick Federal 40 grain $17.99, relax and stack Francis..

Thu, 05/24/2012 - 19:25 | 2460696 Rubbish
Rubbish's picture

One shot, one kill.

 

Then you pick up his ammo/rifle/and a couple of gold coins.

Thu, 05/24/2012 - 20:02 | 2460790 Overfed
Overfed's picture

My local shop had 500rd .22 for 14.99 a couple of weeks ago. Pick it up all day long at gunshows for $15. Buy lots!

Thu, 05/24/2012 - 18:17 | 2460495 DanDaley
DanDaley's picture

Don't confuse having lots of guns with being armed; that's a matter of character.  The sad fact is that probably only 5 -10% of Americans are what you could called truly armed, i.e.,willing to stand up to fascists come hell or high water, and I'm sure the fascists know this.  

Thu, 05/24/2012 - 19:00 | 2460620 ljag
ljag's picture

Let's see........10% of US population comes to roughly 35 million peeps. Lets just say for shits and grins that most of that number is in the countryside. What exactly do you think the fascists of the world think.......again?

Thu, 05/24/2012 - 22:44 | 2461138 DanDaley
DanDaley's picture

Easy.  They think what most conquerors usually think; divide, isolate, and destroy.  It's just that it's going to be more fun than most people imagine when push comes to shove, that's all I'm saying.

Thu, 05/24/2012 - 17:45 | 2460374 moldygoat
moldygoat's picture

Fun!

Thu, 05/24/2012 - 18:41 | 2460534 SheepDog-One
SheepDog-One's picture

Sooooo Quintus your theory is they started printing to 'prop everything up (stocks and bonds only) for a weak illusion of an economy, and thats their plan forever now? Sorry, I dont believe it. 

Let the FED stop emergency ramping any market loss and let markets go down 25% or so, then I might believe in any of this crap. Mike is right in 1 thing, theyre at the end of their rope, but Im not believing a 'massive print' is coming, no way.

Thu, 05/24/2012 - 19:15 | 2460669 Quintus
Quintus's picture

Amazingly, yes - I think that is the full extent of their 'Plan' if you could call it that.

What other option do they have other than fleeing to the nearest non-extradition country?

Thu, 05/24/2012 - 17:18 | 2460267 cougar_w
cougar_w's picture

Hope you didn't put much money on that bet, Dawg. These fuckers are going to print hard enough to wake the dead. They'll print like mo'fos, print like mad men, print like fly pimps. Print until their eyes bleed.

They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters.

They will not give two figs what anyone thinks.

Here is why.

Because this is the Goddamned end of it my friend. There is no accounting beyond this point. There will be no history of it. No one to take notes of rates of exchange, or of the graft and violence, nobody to worry about the deficit or the GDP or the national debt of any nation large or small under the blazing Goddamned sun.

End. Of. It. Does anyone bitch about how Rome totally debased their coinage at the end? Hell no. But whoever did it had enough to hand and grabbed some land with a nice vineyard and sat back and waited for the Middle Ages to start 700 years further on.

And that's what a singularity is about. Anything that passes through is striped of all meaning. Nothing we think is important now will remain so beyond the event horizon. Nobody will remember, nobody will write about it, nobody will be held to any standard. Ever for evar.

So yeah, they'll print like the mad crazed terrorists they are. Because they have nothing to lose, and maybe something to gain. Maybe a dollar. Maybe a day. Maybe a slim chance to escape with some of the loot. Whatever the fuck advantage they see in it, for themselves and their elite crap wanking buddies, they will full-on-full-time-fucking do it to advantage.

Watch for it, Dawg. It's totally on this time, on like Donkey Kong. And when the dust is settled in a generation hence it's going to have become  another unbelievable episode among the ages of men.

Thu, 05/24/2012 - 17:36 | 2460338 RiverRoad
RiverRoad's picture

 +1     "A generation hence" is generous for what will amount to the dawn of the new Dark Ages.

Thu, 05/24/2012 - 17:50 | 2460397 RichardENixon
RichardENixon's picture

That having been said, do you think Facebook is a good buy at $33?

Thu, 05/24/2012 - 18:00 | 2460441 cougar_w
cougar_w's picture

Which way do you think equities will turn when dollars fall from the sky?

No. Seriously. Which way.

Thu, 05/24/2012 - 19:30 | 2460708 RichardENixon
RichardENixon's picture

My question was rhetorical (and idiotic, of course) but as to yours, I assume you mean when more dollars fall from the sky, and my guess is that many equities will rise in price. Facebook, however, will probably, by that time, be rising from a few bucks a share.

Thu, 05/24/2012 - 18:28 | 2460537 SheepDog-One
SheepDog-One's picture

LOL whatever Cougar....think what you want who cares. I will be here for mass apologies from all who have saying Im wrong for the last 2 years. Fucking assholes.

Thu, 05/24/2012 - 18:34 | 2460557 cougar_w
cougar_w's picture

No need to get tense, Dawg. It's all bullshit anyway and you know so.

Thu, 05/24/2012 - 19:08 | 2460644 SheepDog-One
SheepDog-One's picture

So I guess then you DID 'bet' on them doing the 'massive printfest'? How so?

Thu, 05/24/2012 - 19:24 | 2460691 MsCreant
MsCreant's picture

Look what the cat dragged in. Great post Cougar.

You're a good kitty. I like the dawg too, sheep dogs are protectors, the best of the best.

Meanwhile I gotta tell you both, it is clear to this observer at fight club that cougar_w struck a nerve.

Everyone fights at fight club, everyone has a story they're sticking to, until they don't. Looks like it's reigning cats and dawgs here today.

Thu, 05/24/2012 - 23:17 | 2461184 Milestones
Milestones's picture

Cougar, MsCreant, good post by ya both. This is going to be a M.F.; but I sense the ending will be bloody but fruitiful. The human species needs a good bitch slapping--and we are in the process of getting what we deserve.             Milestones

Thu, 05/24/2012 - 18:39 | 2460570 brokenspoke
brokenspoke's picture

New Name for TPTB, (Locust)

Thu, 05/24/2012 - 20:24 | 2460839 WmMcK
WmMcK's picture

Thank you. Have you lived through all this before or are you channeling someone who did? It's posts like this that make me love this site.

Thu, 05/24/2012 - 20:42 | 2460889 Dr. Gonzo
Dr. Gonzo's picture

That's kind of the vibe I get too...but I'm still keeping a little USD cash for the big one even if it has an invisible expiration date on it. When rates finallygo negative then I'll use all of it for my last gold purchase...or platinum. 

Thu, 05/24/2012 - 19:25 | 2460169 MsCreant
MsCreant's picture

Failed humor edit.

Thu, 05/24/2012 - 16:45 | 2460171 TideFighter
TideFighter's picture

Fuck more printing, we already know how this will end.. I want to be with  Slick Willie in Monte Carlo taking photo ops with porn stars. I don't care about the conversion rate, either.  

Thu, 05/24/2012 - 16:59 | 2460214 jus_lite_reading
jus_lite_reading's picture

Why live a simple life preparing for difficult times, when you can go out with a bang... I see your point here. 

Hmmmm. Its a tough call. 

I'll take survival with the best odds...

Thu, 05/24/2012 - 17:33 | 2460331 cougar_w
cougar_w's picture

If some day they ever write about these times they may note that when the fires rose and the walls fell it became quickly obvious that the dead were the lucky ones.

Thu, 05/24/2012 - 16:47 | 2460175 Bay of Pigs
Bay of Pigs's picture

Yes, the miners are at 2008 levels when gold was $700 and silver around $10-12.

 

Thu, 05/24/2012 - 17:46 | 2460378 walküre
walküre's picture

Because the miners were the place to be from 2009 until 2011 to make a decent return. Then the mining shares befell the same troubles as all shares, greed.

Thu, 05/24/2012 - 18:29 | 2460538 Bay of Pigs
Bay of Pigs's picture

No. The miners did very well from 2001-2008. Then the Gold/XAU went out of whack and NEVER came back down to pre 2008 levels.

Check the long term chart and you'll see I am right on that.

Thu, 05/24/2012 - 16:48 | 2460179 machinegear
machinegear's picture

So what do you think they are going to do?

They know the game is over. Therefore, they will invent a new game.

 

Thu, 05/24/2012 - 16:51 | 2460189 Go Tribe
Go Tribe's picture

Guy claims the Fed is behind the curve but offers no data to back the opinion outside of showing the stock charts of four pathetically managed companies. Not sure this one deserves a ZH headline.

Thu, 05/24/2012 - 17:11 | 2460208 Quintus
Quintus's picture

Seen the oil price lately?  Either someone has discovered a new Saudi Arabia size supply, or demand is going off a cliff while the Fed sits on its hands.

I don't recall reading about any massive new supply coming online.

Thu, 05/24/2012 - 17:15 | 2460254 malikai
malikai's picture

Sorry about that, we figured out that we can print oil just like we print PMs. We meant to tell you, but we forgot.

Thu, 05/24/2012 - 17:41 | 2460350 RiverRoad
RiverRoad's picture

TPTB let Big Oil take their money up front so long as they promised to bring it down for Obama's reelection.  They've played that card before.

Thu, 05/24/2012 - 17:46 | 2460380 Quintus
Quintus's picture

Come on.  OPEC has spent decades watching it's members agree to price and production quotas and then over producing to take advantage.

You're suggesting that the oil majors are all one happy family and none of them would break ranks like, um, every other time?

Thu, 05/24/2012 - 18:10 | 2460476 malikai
malikai's picture

I'll add: See the year 1999.

Thu, 05/24/2012 - 18:17 | 2460496 RiverRoad
RiverRoad's picture

Happily "coincident" to low oil helping Obama in Nov., the Saudis et al knew the markets would tank in and around May and into the summer with the Greek fiasco so they spiked the price and took their money upfront.  One hand washes the other. They were a lot smarter than stupid Zuckerberg who ignored his bankers when they told him to float those shares a couple of months ago.  Everybody but the brilliant Zuckerberg, apparently, is tuned in to the timing of this stuff.

Thu, 05/24/2012 - 18:32 | 2460548 cougar_w
cougar_w's picture

The Saudis don't care who sits in the Whitehouse next year.

They know already how this plays out, hell they probably helped write the playbook. They've got a few more years of "free markets" and then the whole thing falls apart.

Probably, all in a day.

Makes no difference who the POTUS sock puppet is that gets to agree to the invasion. It will have something to do with Al-Queda or Syria. Whatever. The Saudis will fold up like the house of cards they are, vacate for somewhere with less sand and no veils at all, and US forces will occupy the oil fields for great justice. Let the ChiComs deal with it, nobody will give a shit.

This isn't rocket science any more. Hell it's not even a mystery. It's a script.

Thu, 05/24/2012 - 18:49 | 2460590 RiverRoad
RiverRoad's picture

You've got that right, and the Fed writes the script so long as our military backs our dollar.  No one gives a damn about Obama; he can keep his butt in the Oval Office chair so long as he minds his Ps and Qs and the Fed.  And as long as they all get what they want, they all play nice together.

Thu, 05/24/2012 - 18:14 | 2460482 WatchingIgnorance
WatchingIgnorance's picture

Oil consumption is dropping rapidly across the board.

Everything is grinding to a halt.

Thu, 05/24/2012 - 18:19 | 2460506 RiverRoad
RiverRoad's picture

Good.

Thu, 05/24/2012 - 16:53 | 2460192 mayhem_korner
mayhem_korner's picture

 

 

You know yer gettin' older when you see a post entitled "Big Print Coming" and you open it expecting to see something about larger fonts.

Edit: long toner

Thu, 05/24/2012 - 17:01 | 2460222 jus_lite_reading
jus_lite_reading's picture

Hehe true.

When you get my age... you'll be using the screen magnifier AND a good set of spectacles!!

Thu, 05/24/2012 - 18:02 | 2460448 NotApplicable
NotApplicable's picture

Don't forget your Jitterbug!

http://www.greatcall.com/jitterbug/

(if you're into those new-fangled cell phone thingies, that is)

Thu, 05/24/2012 - 16:54 | 2460195 Bill D. Cat
Bill D. Cat's picture

Wasn't Moody's going to downgrade some banks one of these days ?

Fri, 05/25/2012 - 20:39 | 2464155 mayhem_korner
mayhem_korner's picture

 

 

one of these days, I'm going to cut you (banksters) into little pieces...

(Pink Floyd, Meddle)

Thu, 05/24/2012 - 16:54 | 2460199 RoadKill
RoadKill's picture

Wow thanks for your oppinion totally devoid of any facts or analysis. "If I turn out to be right".

If I turn ouy to be right - Jesus will be coming back riding a pink unicorn and dropping gold from heaven, totally destroying the value of all pms.

Thu, 05/24/2012 - 17:32 | 2460323 xtop23
xtop23's picture

"Let there be alchemy !"

Thu, 05/24/2012 - 17:44 | 2460373 walküre
walküre's picture

They've had the same issues in the Dark Ages and just spread rumors of Alchemy to keep the price of gold down. Interesting concept.

Thu, 05/24/2012 - 16:55 | 2460200 TideFighter
TideFighter's picture

Gold miner's dividend stocks are being pushed all over the place as the next great opportunity. The end of the manipulation for the poor miners won't come until the end of fiat. Until then, I'm not happy with 2-4%. 

Thu, 05/24/2012 - 16:55 | 2460202 zippy_uk
zippy_uk's picture

Tyler - what I really want to know is when I get to pay off in one go my massive mortgage with a handful paper equivalent in value to a fist full of confetti ?

Thu, 05/24/2012 - 17:50 | 2460388 Paul Atreides
Paul Atreides's picture

Better get off that variable rate mortgage and lock in for 10 years! Central plannings only weapon against hyperinflation is massive interest rate hikes like they did in the early 80's. I don't know if they could do it with current debt load but seems anythings possible on groundhog day.

Thu, 05/24/2012 - 16:55 | 2460205 Caviar Emptor
Caviar Emptor's picture

Too bad the Fed never fixed the bug on their server that never allows integers higher than 1X10^15.

Call it the Y2K+12 bug.

Thu, 05/24/2012 - 16:56 | 2460207 robertocarlos
robertocarlos's picture

They could wait for the sun to turn into a red dwarf. That would solve all our problems. Fiat burns. You could make a gold foil heat shield and survive a bit longer.

Thu, 05/24/2012 - 16:57 | 2460209 PaperBear
PaperBear's picture

These Central Banking guys do all these projections and then wonder why things go down the tubes in deviation to their projections. The only thing they can project is bulls**t.

Thu, 05/24/2012 - 17:44 | 2460370 RiverRoad
RiverRoad's picture

Just shows you why they've been lining their own pockets with gold all this time.

Thu, 05/24/2012 - 16:59 | 2460216 Waterfallsparkles
Waterfallsparkles's picture

Wishful thinking.  Why did you not use charts of Aapl, Goog, Amzn, Crm, Cmg, Pcln, etc.  They ramped way beyond their actual value.

As an example Aapl went down to $80. in 2008.  with the Fed Printing it went to $644.  The overvalued stocks need to come back down to the ground.  Same for Nflx $300. a Share?  Give me a break.

Wall Street just wants "EASY" Money.  They do not want to take the risk that if they buy the Stock could actually go down.  Enough with the printing already.  Let the Market trade on its own with its risks of Stocks going down or up.

Thu, 05/24/2012 - 17:04 | 2460231 Ned Zeppelin
Ned Zeppelin's picture

Ha! That sounds quaint at this point. 

Thu, 05/24/2012 - 17:02 | 2460224 TideFighter
TideFighter's picture

I own property, actually, a lot of property. My "past due" rents ran about 8% to the 10th, 5% past the 10th, 2% past 30 days. Today is the 24th, and I have 32% past due and increasing. Maybe your area is different, but my renters are falling behind and need to cut their rental costs (smaller houses). I would stay away from big houses (if you are a landlord) like the plague. 

Thu, 05/24/2012 - 17:25 | 2460239 Waterfallsparkles
Waterfallsparkles's picture

Most of my Rents are paid on time or close to the due date.  But, the propertys are in good neighborhoods and I can attract good Tenants.  But, I do have one in an area that is not desireable.  They still have not paid for this month.  I just reduced the rent for one of the Tenants by 9% and still late by 24 days. I have been chasing them every money for a year.  Constant rent court, etc. I would get rid of them but it takes forever to get someone for the apartment. But, they do keep their apartments clean and take care of the lawn. So, I guess it is better to stay with the devil you know than the devil you don't know.

I also reduced the rent for another one of my Tenants by about 25%.  He had been there for 4 years and paid on time.  So, instead of losing him and trying to rent in a not so good market I gave him a break and saved me down time painting etc.

I also have not raised my rents for those that did not get a reduction about 3 years just to keep the Tenants I have.  Increased Property Taxes and lower rents have hit my bottom line tremendously.

All of mine are apartments.  I used to own single family houses but got rid of them.  Although, one property is a single famly with 2 apts. The others are Townhouses with 2 apts. Lots of headaches when they are vacant.  Like painting, lawn, schrubs, etc.

Thu, 05/24/2012 - 17:18 | 2460269 All Out Of Bubblegum
All Out Of Bubblegum's picture

My far more significant other works for a large property owner locally. She's inhouse collections and based on her similar past due experience with tenants that you described, she suggested that we move to a smaller, cheaper place as a small measure of self-defense for the obvious downturn. I agreed.

I hope you have good earplugs cuz the coming Big Default is gonna be loud.

Thu, 05/24/2012 - 17:03 | 2460226 Waterfallsparkles
Waterfallsparkles's picture

Maybe the FED should let interest rates in the Banks Savings Accounts go back up to 4%.  That would help all of Americans.  Especially, the Savers.

With higher interest rates Banks might even lend Money to People instead of Trading the Market and parking most of their money back at the FED.

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