Guest Post: Here’s The Good News: You’re Not Bank of America

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man

Here’s The Good News: You’re Not Bank of America

Ten years ago, Goldman Sachs’ Jim O’Neill coined the term “BRICs” to lump together a group of large, rapidly-growing economies that we all know well: Brazil, Russia, India, and China.

True to his thesis at the time, growth and development in these countries has left the rest of the world for dead over the past decade.

But all good things must come to an end… and it’s now clear that the BRICs are in for a much more difficult period.

China is slowing fast. Property prices have stalled and begun pulling back, souring a huge component of economic growth. The same goes for the country’s infrastructure spending.

Even China’s stalwart manufacturing sector is showing signs of contraction based on the most recent November numbers.

In Brazil, the economy (which is highly dependent on exporting natural resources to Asia) has ground to a halt. Further, the debt-fueled domestic consumption binge among Brazilian households is slowing as debt service burdens have reached nearly 30% of the average Brazilian paycheck (vs. 16% in the US).

India, meanwhile, is struggling with runaway inflation, a collapsing rupee, political gridlock, and a series of high profile corporate collapses– led by Kingfisher Airlines, the plaything of flamboyant tycoon Vijay Mallya, who has been forced to personally guarantee the company’s debts.

The  rupee is the worst performing currency in Asia this year and has just fallen to a record low versus the US dollar.  The Indian economy is really on the skids.  Industrial output was 5.1% lower in October versus a year ago.  Output of capital equipment, which is considered a good leading indicator of future economic activity, fell a much more drastic 25.5%.

And now, to top things off, political unrest in Russia following the recent election there has seen troops battling protestors on the streets of Moscow.

It’s clear that the BRICS cannot be the engine room of global economic growth.

Meanwhile, Europe is a complete basket case, and the euro is looking increasingly as though it will be consigned to the dustbin of history. Across the pond, the US is trying to put a brave face on its jobless recovery whilst kicking a $15 trillion debt bomb down the road.

Anyone who steps back and looks at the big picture has -got- to recognize the absurdity of this situation.

Now… here’s the good news: you and I have a huge advantage. Citi, Deutsche Bank, Unicredit, etc. are sitting on incalculable losses, unrealistic obligations, and worthless paper that will destroy their organizations. They’ve been accumulating these for years and have no way of avoiding the endgame. We do.

We, on the other hand, are little guys. If you and I want to cut our exposure to these silly pieces of paper that governments pass off as currency, we can do that easily. We can easily do that by buying gold or productive land overseas.

Bank of America, on the other hand, has to hold Tim Geithner’s dirty laundry.

These banks that are crushed under the weight of managing hundreds of billions of dollars have very few choices– government A’s worthless bonds, or government B’s worthless bonds. We have an entire universe of options.

No matter if you have one hundred dollars, one hundred thousand, or one hundred million, your choices are far, far greater than these pitiable schmucks who are desperately clinging to the fraud that is our global financial Ponzi system.

The stores of value and investment opportunities for our savings are still out there; you just have to look in nontraditional places.

As for me, I’m investing my time, money, and energy in-

a) precious metals (a traditional store of value to some, a barbarous relic to others)

b) business opportunities in exciting frontier economies like Mongolia (and perhaps soon to be North Korea!)

c) shorting the obvious financial system absurdities (like loaning the US government money for 30-years at 2.9%)

d) deeply undervalued and distressed assets (such as stocks that are trading for less than their net cash per share)

e) farmland in Chile… where no matter what happens in the world, we will have high quality organic food to eat and the possibility of obscene profits in the event of steep inflation.

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TorchFire's picture

Little Timmuh has soiled himself ....again.

HedgeAccordingly's picture

quiet bailout is looking more and more like truth - 

economics1996's picture

Check out the man boobs on the human pos Barfy Prank.  This is what happens when ugly women breed with ugly men.

Manthong's picture

I know a retirement place that the congressman (?) deserves to go to and where he would feel right at home. 

Raisuli's picture


ZZZzzz sshhhsshh, sleeping now........

Another Texan's picture

Let's not forget Uncle Warren's BOA investment. Makes me want to go buy some Berkshire stock

kill switch's picture

Buffy's bathtub cycic vision 101...

Jason T's picture

In other words, we can "go Galt."  

High Plains Drifter's picture

oh yeh, mongolia..........go ahead . be my guest............


oh and chile?  i get warm fuzzy feelings all over about chile........

Mauibrad's picture

Yeah, Tyler, a number of the items on your list will be highly illiquid, like stocks supposedly valued at less than their fiat cash on hand, in a market for their paper and assets that will be illiquid.  Not everything on your list looked good, Tyler.

Nostradumbass's picture

Not Tyler.

Simon Black.

Touting Chile, as always. Some good points nonetheless.

Dcheeth2's picture

If you look just at debt, Chile is at about zero to GDP. Good mining country and rich agriculture. Sounds fairly ok to me. 

Also, more stable than most South American countries to boot.


Lets face it, the options are getting smaller by the day for long term investors. 

dwdollar's picture

When SHTF you DO NOT want to be an outsider in any land. Period.

ZachGreen30's picture

where do you go to find those numbers?

CORNGUY's picture

Did you notice the GUEST POST before the name of the article

e2thex's picture

" buying ...productive land overseas."

Productive for what? Have you tried to buy or better yet sell land in Costa Rica? Chile? Colombia? France? the Bahamas? Romania? Hong Kong? Singapore?

Sorgham? What else were you thinking?


"In theory, theory and practice work. In practice, they do n...."

WmMcK's picture

"The difference between theory and practice is a lot bigger in practice than it is in theory'

RebelYell's picture

Read the post first you Dildo.

sullymandias's picture

oh yeh, mongolia..........go ahead . be my guest............

i know, maybe we can start a llama farm there HPD

11b40's picture

Almost as warm as those engendered by the coming opportunities in N. Korea.  Mmmmm boy!  I can hardly wait.

Get your wealth spread all over the 3rd world, subject to political upheaval and laws(?) that treat foreigners like dirt.

We have our problems, for sure, and pain is coming, but I'll still take my chances here.  After all, we have both the biggest MIC & unlimited fiatscos to pass around.  Every other foreign country has to know that if the military doesn't get you, the currency manipulation will.

stocktivity's picture

Real practical Simon. How are the Mongolian neighbors going to react to a gringo operating a profitable farm while everyone around him are starving. You better have quite an arsenal.

Hot Apple Pie's picture

Mongolia and Chile. Gee, where do I sign up?

falak pema's picture

mongolian magic word : koumis. 

CharlieSDT's picture

Mongolian girls are quite hot, a mix of Asian and Russian, classy, and smart.  

Sign me up.

Although, my friend Art Phister dated one who turned out to be a meth-head in Singapore. 

Yes We Can. But Lets Not.'s picture

I'm already signed up, and based on my experience I'd say that your assessment is accurate

kito's picture

hurry sign quick with simons people!!! free chilean inflation protection bonds with the purchase of your new chilean house with gringo pricing!!!! hurrrrrryyy!!!!

Stagflationary's picture

Let me know how it goes with the productive land in the Gobi desert. 

homer8043's picture

Basically, I breathe, I am worth more than zero, hence worth more than BAC, MS, C, GS, etc, etc.

Cameli's picture

Guys like the morgue and the squid will always come up smelling of roses no matter WTF happens. You will never be worth more then them. Suggest you park your dough there.

Terminus C's picture

So they can co mingle it?  Or maybe so that they can sell you shit products?

Keeping your money at the squid is like storing your blood with a vampire.

NumberNone's picture

Good News: You're not on the House floor having to stare at Bawny Fwanks man-boobs...which one's Fannie and which one's Freddie?  I'm sure he's named them after the two babes that suckled at them most. 

FEDbuster's picture

Needs Spanx or a Manssiere.  At least he took his nipple rings out.

Hulk's picture

Somebody needs to milk him fast, before he starts mooing...Volunteers anyone ???

Yes We Can. But Lets Not.'s picture

Milk? No. Meat packing plant.

agent default's picture

Ok you've lost me completely with North Korea.  Have you seen the new boss in NK?  He is like, WTF?

blu's picture

His dad was another "WTF is this." The Koreans must be desperate; they're creating their dear leaders out of bread dough left to rise in man-shaped clay pots.


EDIT: This right here is five kinds of fucked-up:

Is the whole thing staged? Or are they really crying hysterically? I don't know which interpretation would be worse.

agent default's picture

Looking at new boss, I think they are beginning to miss old boss already.

BidnessMan's picture

All look pretty well fed and clothed, all lined up nice and neat - the NK 1%?   Should be terrified at the thought of having to starve to death like the NK 99%'ers.  The crying probably is sincere in that light.  If it were me, certainly would want to be seen publicly bawling hysterically to stay on the 1% list with the newest "Brilliant Comrade"....  

blu's picture

I was thinking "high level plutocrats and family pulled from the party offices and bused in" so yeah, what you said.

I suppose their chances depend on which way Sonny takes things. If he liked his dad, these folks are probably okay. If he didn't, then these folks are out of work and some of them may be out of time.

DosZap's picture


Well, those people 97% of them were forced to do the political WORLD SUCK up.

You think for one second those people are going to miss the bastard that's starved most of them to death for the sake of the Military?

Dream on....................bow, scream,wail,or DIE.)OFF cam)

smiler03's picture

They've just been brainwashed since birth, like Christians. For them it as if Jesus just died.

quasimodo's picture

So now all Christians are brain washed? And how did you arrive at this conclusion Einstein?

Calmyourself's picture

Your wasting your time, thnk of him as...fertilizer, ooh, not very christian of me you say.. I prefer the parts about Joshua..

Pope Clement's picture

Christianity or Paulianity? Was James the Righteous brother of the Lord and leader of the Jerusalem Assembly pitched from the high parapet of the temple by the 'Liar'? Some opine the tosser to have been Saul of Tarsus? Brainwashing is an interesting question indeed.

blu's picture

Bank of America, on the other hand, has to hold Tim Geithner’s dirty love rod.

There fixed it.

But it wasn't worth it, because now I'm grossed out.

RobD's picture

First Barny's manboobs and now Timmy's dirty love rod. This day is really twisted lol.

stocktivity's picture

I doubt either one is too big to fail

PulauHantu29's picture

Bonuses will be record high again irregardless.