This page has been archived and commenting is disabled.

Guest Post: Why The U.S. Economy Could Go Haywire

Tyler Durden's picture


Submitted by Dan Dorfman courtesy of TrimTabs Money Blog

Why The U.S. Economy Could Go Haywire

Americans participating in a recent Gallup poll showed the highest level of confidence in an economic recovery in a year.  Sounds great, but you can’t ignore the nearly 13 million unemployed, the 46 million people on food stamps and the roughly 29% of the country’s homeowners whose mortgages are under water. They would find it hard to subscribe to the poll’s sunny conclusion. On the other hand, there’s no getting away from a bevy of seemingly increasingly favorable economic data, which, more recently, includes falling weekly jobless claims, four consecutive monthly gains in the leading economic indicators, somewhat perkier retail sales and a pickup in housing starts and business permits. Pounding home this cheerful view is the media’s growing drumbeat of increased economic vigor.

Confused? How can you not be? But President Obama has to be elated at this widely perceived peppier economy. During much of his presidency, he’s been roasted by some critics as an economic illiterate, with one Internet poster recently reading: “Obama had a dream and we got a nightmare.” Now, though, thanks to the public’s growing acceptance of the idea that things are getting better, Obama’s approval ratings are on the rise. Even a number of his Wall Street critics are starting to acknowledge his chances of winning a second term have greatly improved and some believe he’s almost a shoo-in should the current economy continue to pick up steam.

The favorable economic news has also been a big plus for the stock market, what with equities off to a rousing start in 2012 and the Dow recently ballooning to a four-year-high of around the 13,000 level.

That also sounds great, but there’s still a lingering amount of economic scare talk around that’s probably a lot scarier than most haunted houses, namely the chatter and economic commentaries that raise such ominous prospects as a new U.S.  recession, a global depression and unemployment in the West (Europe and the U.S.) reaching 20% or more and further toppling of European  governments.

It all raises the obvious question: are we out of the woods yet?

No,  says James Dale Davidson, an editor of Strategic investment, a Florida newsletter, who writes in the latest issue that “the U.S. economy is staggering, like an over-the-hill boxer trying to shake off a jab to the chin.”

Of concern to Davidson, among other things, are an unfavorable demographic trend (an aging population) and a global debt crisis, both of which he views as essentially insoluble, a contraction here of real personal income,  a developing recession in Europe, which will mean a downturn in the U.S., and the prospective toppling of more European governments on top of the seven that have already toppled, a grave situation magnified by the shaky financial condition of European banks.

All told, there are about $87 trillion of assets in the world banking system, around $40 trillion of which are estimated to be in European banks. On average, Davidson points out, European banks are woefully insolvent and leveraged at 26 to 1, meaning, he said, a 4% loss would wipe out their capital. Conservatively, he points out, these banks are about $300 billion short of the capital needed just to make adequate provision for the sovereign debt they hold.

To our economic bear, the handwriting is on the wall, contending “there is no longer a question of whether Europe will fall into a downturn. It already has.”

Davidson further notes that slow growth (which is the case now) has always been an indication that the economy was sinking into a recession, was already in a recession, or was just emerging from a downturn. In this context, he believes the most likely scenario is that we will soon find ourselves in a recession since there is very little in recent data to encourage optimism about robust growth.

This year’s economic and financial news, as Davidson sees it, will detail the painful and gradual awakening of investors to the grim reality. Among what he sees as headline developments:

–Savings rates will rise again following a plunge in home equity values that the Financial Times estimates at $650 billion.

–P/E ratios will continue to be compressed as the prospects of real growth evaporates.

–We will move from “a rising tide lifts all boats” buy-and-hold market to a stock picker’s market.

–With median incomes falling and little prospects of real sustained growth, it will be a rare company that realizes significant gains in top line revenue. In essence, you’ll have to find the next Apple to capitalize on dynamic growth.

Davidson also serves up equally grim tidings for our nation’s retirees. “The welfare state is broke, busted, and the expectation of retirement for the majority of people will be exposed as, at best, an even more illusive dream, and, at worst, a hoax.”

With speculation rife that it’s only a matter of time before Greece defaults despite a recent bailout package, as well as the prospects of other countries also defaulting, it’s worth taking note of a frightening observation from Citibank’s chief economist, Willem Buiter.

Focusing on the threat of disorderly defaults–which we’ve already seen in such riot-torn nations as Greece and Italy–Buiter contends such disorderly defaults “would drag down not just the European banking system, but also the North Atlantic financial system and the internationally exposed parts of the rest of the global banking system that would likely last for years, with GDP falling by more than 10% and unemployment in the West reaching 20% or more. Emerging markets,” he observed, “would be dragged down, too.”

So there you have it, a slew of scary events, any of which could clobber the economy and the financial markets at any given moment. How real such risks are is anybody’s guess, but the message from our worrywarts is clear: there’s still plenty of economic danger ahead.

One of the more famous Yogi-isms might sum it up best: “It ain’t over till it’s over!”


What do you think? E-mail me at


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 02/23/2012 - 12:48 | 2189396 SilverRhino
SilverRhino's picture

Metals bitchez!

Thu, 02/23/2012 - 12:53 | 2189422 Future Tense
Future Tense's picture

Hugh Hendry made a public appearance this week in a Barron's interview.  He was talking about hyper-deflation and discussing the danger of owning "too much" gold.  Looks like his Japan bet is also paying off huge:

Thu, 02/23/2012 - 13:37 | 2189603 Citxmech
Citxmech's picture

Oh yeah - that's my problem: Too much gold.

The horror.

Thu, 02/23/2012 - 13:45 | 2189628 SilverIsKing
SilverIsKing's picture

If anyone feels they have too much gold, I'm willing to take the excess off your hands for a nominal fee.

I charge only $50/oz and for disposals larger than 5 oz, I will personally come and haul it away at your convenience at no additional charge.

Thu, 02/23/2012 - 14:07 | 2189676 ratso
ratso's picture

Well Mr. Dorfman could have noted that the stock market usually anticipates the actual economy by 6 months - but he didn't - he just quoted from someone, Dale Davidson (and who the hell is he??) who probably couldn't tie his shoe laces if he had three hands. 

The American people are and have always been an optimistic people with a belief in our ability to overcome adversity with our own efforts.  That has not changed.  Corporations and banks in the US have better balance sheets that at any time in this last decade. The opportunity for growth is within reach.

Yes, there are problems but not the kind laid out in this article.  EU countries will save EU banks - it is just that simple - they have already said so.  So draggin out the boogeyman of under capitlaized EU banks is just another attempt to drive fear into the equation when in fact things are actually looking.


Thu, 02/23/2012 - 14:24 | 2189727 economics1996
economics1996's picture

I am going to get a job teaching economics in Peru, taking my guns and gold with me.

Here is what you need to know about the American economy.[1][id]=LNU01300000

Thu, 02/23/2012 - 14:32 | 2189772 ratso
ratso's picture

Well good luck with that - by the way, you might look into traffic laws in Peru before you drive a car in that country.  The Peruvians will welcome your gold but not your guns.

Thu, 02/23/2012 - 14:39 | 2189790 trav7777
trav7777's picture

"this sucker could go down"

Thu, 02/23/2012 - 14:36 | 2189781 Leopold B. Scotch
Leopold B. Scotch's picture

Americans are indeed known for their optimism... But that's adjusted from can-do optimism to entitlement optimism. 

the Wile E. Coyote moment nears, when the collective "we're U.S.A.!  The rules don't apply!" attitude is rudely acquainted with Economic Gravity 101.  (But as long as they refuse to look down and see they've missed the bend in the road, I guess they're OK...)

I think it was H.L. Mencken who said, "nobody ever went broke underestimating the intelligence of the American public."

Let's hope the thieves at the top don't make gold illegal, or tax it at 75%, or declare us all economic terrorists for taking down the God blessed currency of the U.S. of A.

Thu, 02/23/2012 - 14:50 | 2189832 rosiescenario
rosiescenario's picture

""nobody ever went broke underestimating the intelligence of the American public."


....or was it, overestimating the unintelligence of the American public.

Thu, 02/23/2012 - 16:38 | 2190410 Seer
Seer's picture

Or: No one ever went broke overestimating the power of the marketing forces (nod to Edward Bernays) to program people to be stupid.

Thu, 02/23/2012 - 14:53 | 2189841 TruthInSunshine
TruthInSunshine's picture

Operation Sock Puppet is in full action today.

Hello, Sock Puppets @ The Ministry of Interwebz Criticism of Dear Leader Refutation Office!

<waving my ballsack vigorously>

Thu, 02/23/2012 - 15:34 | 2190064 The Big Ching-aso
The Big Ching-aso's picture



"Beware of gallop that leave horseshit in wake."



Thu, 02/23/2012 - 14:30 | 2189763 dontgoforit
dontgoforit's picture

Do you suppose they'll allow me to continue to work at the university when I'm 89?  Sounds like I may have to. 

Thu, 02/23/2012 - 13:39 | 2189608 Don Birnam
Don Birnam's picture

As an aside: Yes, Dan Dorfman is still alive.

Thu, 02/23/2012 - 14:06 | 2189698 Vince Clortho
Vince Clortho's picture

Is this guy related to Kent Dorfman (Flounder)?

Thu, 02/23/2012 - 14:23 | 2189740 pods
pods's picture

Fat, drunk and stupid is no way to go through life, son.

Thu, 02/23/2012 - 14:47 | 2189817 Don Birnam
Don Birnam's picture

"Redo those buttons ! Dress that belt buckle ! Straighten that cap ! And goddamn it, tuck up those pajamas !"

Thu, 02/23/2012 - 16:06 | 2190273 francis_sawyer
francis_sawyer's picture

So I guess he's driving us to the Food King...

Thu, 02/23/2012 - 14:04 | 2189695 NotApplicable
NotApplicable's picture

Maybe Hugh is trying to convince TPTB that he has no gold?

Thu, 02/23/2012 - 14:42 | 2189805 trav7777
trav7777's picture

why would Japan sell foreign assets if there are domestic yen liabilities?  Just print the yen; that's what they do.

Thu, 02/23/2012 - 13:00 | 2189471 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"Sounds great, but you can’t ignore the nearly 13 million unemployed, the 46 million people on food stamps and the roughly 29% of the country’s homeowners whose mortgages are under water."


Ignore it?? SURE YOU CAN!!!

Most American Sheeple will believe whatever the Magic Sqwauking Box they stare at in the living room every night tells them!

High gas prices? It's the fault of "EVIL SPECULATORS!" now. per Pelosi, not the Oil Whores In The White House!" like said in 2008!

Foodstamps?? That's just B.S. You don't see any food lines on the NBC Nightly News, do ya? No MSNBC Reporters reporting outside the gas station with the highest prices for miles around? No CBS stories about the homeless livingunder bridges?

Oh, and your kid's family living in your basement because he can't find a job? They don't actually EXIST, that's just FOX NEWS making things up again!

Thu, 02/23/2012 - 13:26 | 2189569 Smiley
Smiley's picture

TV is for stupid people.


Every single one of Obama's speeches reiterates the same sentence:


Thu, 02/23/2012 - 13:45 | 2189626 GOSPLAN HERO
GOSPLAN HERO's picture

What do you expect from a zambo?

Thu, 02/23/2012 - 13:53 | 2189654 Sudden Debt
Sudden Debt's picture

Obama will go down like a dotcom i'm telling ya!!!

Thu, 02/23/2012 - 13:30 | 2189581 resurger
resurger's picture

+1 Flyover

you know am really sad that only 30K or 40K people view ZH on daily basis where it should have at least 500K views per page... This tells me that there are so many idiots in this world!

We can not change our world unless we decide to change ourselves, it's very hard when you have people hooked on MSM induced stupor.

Trust me when the shit hit's the fan this website will become the New Bloomberg.. I trust the ZH's

  1. You don't ask questions.
  2. You don't ask questions.
  3. No excuses.
  4. No lies.
  5. You have to trust Tyler.




Thu, 02/23/2012 - 13:49 | 2189642 wee-weed up
wee-weed up's picture

When the shit hits the fan - this website will cease to exist.

Thu, 02/23/2012 - 13:52 | 2189650 resurger
resurger's picture

When shit hit's the fan, you can come and browse the old archives




Thu, 02/23/2012 - 14:22 | 2189736 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

And so will the internet when they shut down the DNS servers like that "fix" for malicious software on or about 3-8-12.

Tyler: How about posting your TCP/IP addresse(s) so we can do an end-run around these government assholes?

Fri, 02/24/2012 - 02:17 | 2191915 StychoKiller
StychoKiller's picture

ZeroHedge IP addresses:

Or, you could use 'nslookup', if you're running Linux...

Thu, 02/23/2012 - 13:58 | 2189672 redpill
redpill's picture

Trust no one.

Thu, 02/23/2012 - 14:17 | 2189722 economics1996
economics1996's picture

That is to good to be true.

Thu, 02/23/2012 - 14:23 | 2189739 Tramp Stamper
Tramp Stamper's picture

Hmmm....a Tyler terminal

Thu, 02/23/2012 - 14:37 | 2189787 redpill
redpill's picture

You a tattoo artist?

Thu, 02/23/2012 - 16:02 | 2190233 Tramp Stamper
Tramp Stamper's picture

Are you looking into getting a tattoo of the Bernank on your lower back?

Thu, 02/23/2012 - 14:31 | 2189769 mikemcsaudi
mikemcsaudi's picture

Zero Hedge is an incredible website ... my #1 stop each day.  However, for it to become a "go to" site for the masses it has to become more user friendly.  First off, it's a  financially technical website.  Most zombies don't even understand interest rates let alone hdge funds, PIIGS, ETFs and the such.  Iet personally took me about a year before I was able to understand what all you financial heads were talking about.  I'm StILL learning almost every day something new.  I love it!  But ...

If Tyler wants this to be a Go-To site he should take a page from the Drudge Report or Business Insider and have easy to understand headlines with a "so what?" for each headline.  Also, lots of pretty pictures work as well. :)

Thu, 02/23/2012 - 14:44 | 2189806 jjamppong
jjamppong's picture

I'm pretty content with the site as it is. The level of analysis is at a high level and to "dumb it down" for the masses would mean removing a large part of what makes this site so insightful and thought provoking.

Thu, 02/23/2012 - 17:39 | 2190723 Fukushima Sam
Fukushima Sam's picture

I guess you want the Tylers to improve their grammar as well?

Fuck that.

Thu, 02/23/2012 - 20:34 | 2191274 Larry Dallas
Larry Dallas's picture

I think you need to keep your ignorance to yourself and get schooled up on these things.

No one wants to dumb-down this site. Its not for mass consumption. You can go to the Huffington Post if you'd like... Don't let the door hit you on the ass on your way out.

And if you like it, donate something.

Thu, 02/23/2012 - 13:35 | 2189596 Sudden Debt
Sudden Debt's picture

If it's not the kids living in the basement.... WHO IS!?!?.?!?!?!

yabadabadooooooo.... Scooby Doo where are you!!!

Thu, 02/23/2012 - 16:28 | 2190373 karzai_luver
karzai_luver's picture

Everyone I know that wants to work and IS WORTH HIRING is working.


If you or your "friends" are not I suggest you get off your ass and make something of yourself.



Thu, 02/23/2012 - 20:21 | 2191238 dugorama
dugorama's picture

but a whole lotta people I know have jobs with half the required skill set they used to hold.  If you used to do risk modeling and now you create MIS reports for 60% the money, yes, you're still employed.  But no, you ain't exactly happy about it.

Thu, 02/23/2012 - 13:08 | 2189496 slaughterer
slaughterer's picture

... and so, while the "US-economy-gone-haywire scenario" will be rife with unimaginable horrors, we believe that the "pre-haywire period" will be filled with unprecedented opportunities for profit...

Thu, 02/23/2012 - 13:15 | 2189521 LibertyIn2010
LibertyIn2010's picture

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way--in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." - Charles Dickens, A Tale of Two Cities, Book 1, Chapter 1

Thu, 02/23/2012 - 15:30 | 2190050 Iwanttoknow
Iwanttoknow's picture

Great quote.

Thu, 02/23/2012 - 13:27 | 2189570 withnmeans
withnmeans's picture

Quote out of Kathimerini,

The United States, the biggest contributor to the IMF, welcomed the bailout deal, but said on Wednesday that Europe should do more to prevent any risk of contagion.

"We believe that the IMF should continue to play a constructive role in Europe, but IMF resources cannot be a substitute for a strong and credible firewall,» Lael Brainard, the U.S. Treasury Department's under secretary for international affairs, said before a Group of 20 meeting this weekend.


Hell lets bail everyone out, Its only ink and paper!!

Thu, 02/23/2012 - 14:24 | 2189744 NotApplicable
NotApplicable's picture

You know, I think we should start calling bail-outs "bail-ins," as all they do are to suck the masses deeper into the hole.

Thu, 02/23/2012 - 14:25 | 2189749 ONO47
ONO47's picture

It's not even ink and paper. It's a few keystrokes.

Thu, 02/23/2012 - 14:41 | 2189801 pkea
pkea's picture

What's let's say JPM leverage? 1:4 now?

Thu, 02/23/2012 - 15:04 | 2189833 pkea
pkea's picture

who cares that millions are underwater on their mortgages and food stamps from the big four bank perspectives. It is all peanuts. 80% marginally or even fully employed. they will continue their marginal spending. It's all about multinationals and dollar devaluation. and what sort of investors is he talking about? there are no investors, there are only big banks who take positions and the meager remaining trading community has to go along with them. the only real problems are the rising and soon to be skyrocketing energy costs, global debt, the european banks leverage and the US banks exposure to the Eu in general. is it around 17-20%? What is their leverage now?

Thu, 02/23/2012 - 19:27 | 2191089 brettd
brettd's picture

If people themselves actually cared, they'd be on ZH or in their Senator's face screaming.

Most are watching the game....

Thu, 02/23/2012 - 12:47 | 2189397 The Count
The Count's picture

Food stamps, TV, religion, dope and all is well! 



Thu, 02/23/2012 - 13:40 | 2189613 Bullionaire
Bullionaire's picture

While doing a bong hit I noticed your error:


Food stamps, TV, religion, pharmaceuticals and all is well!



Fixed it.  No charge.



Thu, 02/23/2012 - 12:48 | 2189400 bdc63
bdc63's picture

"could" go haywire? ... that's a bit optimistic ...

Thu, 02/23/2012 - 13:25 | 2189564 ghostfaceinvestah
ghostfaceinvestah's picture

That's what I was thinking.

Remember the jobs numbers are all seasonally adjusted, but not weather adjusted.  There is a reason things are seasonal, and much of it has to do with the weather.  Since the weather has been mild this winter, the seasonal adjustments are over-adjusting.

There is a reason the central banks are flooding the system with liquidity, they know that this so-called improvement is illusory.

Thu, 02/23/2012 - 16:48 | 2190476 Seer
Seer's picture

THE Plan: Infinite growth on a finite planet.

What could possibly go wrong?

Thu, 02/23/2012 - 12:49 | 2189405 taniquetil
taniquetil's picture

The government jokers (BLS) are giving themselves a contingency plan for what happens in case Obama loses the election and is no longer around to boost their government salaries and government pensions.


It'll be halfway through Mitt Romney's term and the BLS will "revise" unemployment up by 5% and use it as an excuse to get another Socialist in office.

Thu, 02/23/2012 - 12:54 | 2189428 crawldaddy
crawldaddy's picture

hundreds of thousand of govt jobs have been eliminated, and fed govt salaries have been frozen.  


SO learn some facts and go back to flipping burgers and being jealous.

Thu, 02/23/2012 - 13:19 | 2189545 oddjob
oddjob's picture

Typical statist disinformation. Sponging a living is welfare, not work.

Thu, 02/23/2012 - 14:27 | 2189754 NotApplicable
NotApplicable's picture

Well... it's good "work," if ya can get it.

Besides, by the time I die, I expect everyone to be either a ward or "employee" of the state.

Thu, 02/23/2012 - 15:02 | 2189826 Leopold B. Scotch
Leopold B. Scotch's picture

Roughly $6.3 trillion is spent by governments in the United States -- about 40% of GDP.  The U.S. now has twice as many government workers as factory workers, a complete reversal of 1960 numbers.  

We hide the fact that so many lives depend on government jobs by hiring out / privitisation.  Many hook-and-line republicans think this was done to shrink goverment.  Rather, it has the very appealing affect of hiding from prying eyes the exact numbers of people who are, for all intents and purposes, working  for the government /  employee dependents of govt largess.  40% of all dollars spent in the economy go for direct / hidden govt employees!

This is pretty much like what the Dems did in the 1960s to hide the massives costs of expanding social security, creating the Great Society:  They moved the unfunded liabilities that would accrue off the balance sheet.  (Imagine a business similarly pretending a $20 million 20-year baloon payment loan didn't exist on its balance sheet for years 1-19...  CFOs go to jail for those lies, but if you're a Congressman who stands behind such fraud... You retire rich as %#$@.) 

Our unfunded NPV liability for all these promises is something like $5 trillion annually (real deficit wise) and lump value, I've seen numbers ranging from $68 trillion to $110 trillion....  Good luck at taxing yourself out of that hole!

But as for government employees, many former welfare folks or formerly unemployed are currently employees of grant program beneficiary companies, shells that look private, but produce nothing anyone wants ( good only for their onwers, empployees- -- and politicians), all of which would vanish into the "nobody actually voluntarily buys what we're selling" heap.

Thu, 02/23/2012 - 14:00 | 2189677 Ayn Rand
Ayn Rand's picture

Fed gov't salaries HAVE NOT been frozen.    Obama just proposed a 2% accross the board incease.   Stop lying.

Thu, 02/23/2012 - 19:28 | 2191093 brettd
brettd's picture

So why do we need another debt limit increase?

Thu, 02/23/2012 - 12:55 | 2189442 Terminus C
Terminus C's picture





you still think there is a difference between repulicrat and democin.


Thu, 02/23/2012 - 13:19 | 2189538 JimBowie1958
JimBowie1958's picture

YOU get YOUR facts straight: Roney is not a socialist but a FASCIST.

He is the number one corporate-cronyism whore this country has ever seen, wraps himself in the flag daily, and he will not hesistate to destroy anyone that gets in his way.

The thought of that man in the Oval Office wielding the powers of the Patriot Act, secret arrest, secret military trials and hidden prisons and the ability assassinate ANY Amerian without one day in court or the targeted American not even having a single idea he is even under watch...THAT IS A TRUE HORROR STORY UNFOLDING IN OUR LIFE-TIMES.

If someone held a gun to my head and said either choose Romney for President or the Anti-Christ, I would have to say, 'Shoot me!'

Thu, 02/23/2012 - 13:42 | 2189619 Bullionaire
Bullionaire's picture

Socialist = Fascist = Statist


Get over your "-ism" addiction.

Thu, 02/23/2012 - 14:20 | 2189733 pazmaker
pazmaker's picture

Jim,  I hate to burst your bubble, but that current guy...what's his name?.....oh yea Obama is already up there wielding the powers of the Patriot Act and assasinating American Citizens....or did you forget October 2011?


So spare me the warning and realize that Obama is Romney and Romney is Obama.  There appears to be a choice but either one will do for the corporates.

Thu, 02/23/2012 - 14:34 | 2189779 ONO47
ONO47's picture

The 'Merican Sheeple don't want a choice. They want Yankees/Red Sox. A choice would require them to turn off the TV and think.

Thu, 02/23/2012 - 16:55 | 2190518 Seer
Seer's picture

To use Ron Paul's one-word synopsis: he's a "fake."

Thu, 02/23/2012 - 13:20 | 2189549 JPM Hater001
JPM Hater001's picture

You mispelled the middle part are missing an H.

Thu, 02/23/2012 - 15:59 | 2190212 General Decline
General Decline's picture

"get another Socialist in office.".

I think you mean fascist. And regardless which party wins this fall, we will have, yet, another one in the oval office.

Thu, 02/23/2012 - 17:03 | 2190563 Seer
Seer's picture

"Authoritarian"  There, that covers it all!  (statist folks on the Right toss "socialism" all over the place in order to hide their desire to control via authoritarianism; people on the Left toss "fascism" all over the place in order to hide their desire to control via authoritarianism.)

Most anarchists understand this, it's why their primary (and should be, ONLY) tenet is that there be NO centralized, coercive power.  If people wish to form their own groups then that's their business, but others should not be force-ably coerced in to participating in anything that they don't wish to participate in.

Thu, 02/23/2012 - 12:50 | 2189409 uno
uno's picture

Dan Dorfman, I remember his old CNBS gig when he moved stocks ala Jim Cramer

Thu, 02/23/2012 - 13:15 | 2189522 Withdrawn Sanction
Withdrawn Sanction's picture

Wasnt that "Kent Dorfman?"  Oh, no wait that was Flounder in Animal House...Oh, IS the same guy.  Wow small world

Thu, 02/23/2012 - 14:31 | 2189762 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Yeh, Dan was the perennial pessimist/bear/realist and Myron Kandel was the super optimist.

Thu, 02/23/2012 - 12:52 | 2189417 crawldaddy
crawldaddy's picture

its really simple.  More debt cant be the answer to the problem of too much debt.


Yet that is the only card we have left to play.  Its over.  Your sitting with a crappy hand, your bluffing to extend the game, but eventually you will be called, and you'll have to show em, and then you lose. ie.. we all lose.


Thu, 02/23/2012 - 14:08 | 2189704 Nugents Bastard
Nugents Bastard's picture

The only hope is for something to interrupt the hand, before you are forced to throw down.  Let's say, for the sake of providing an example, something like, maybe, World War III starting up.

Thu, 02/23/2012 - 17:07 | 2190582 Seer
Seer's picture

Hope is the longing for a condition for over which you have no agency.  (definition constructed by Derrick Jensen and an audience)

Our "agency" is that we can drop the cards and walk away, realizing that this is but a game, a game of death, and that we need to realize what life is really about (promoting/engaging in sustainable, responsible actions).

Thu, 02/23/2012 - 12:52 | 2189418 the 300000000th...
the 300000000th percent's picture

Just recieved 3 Finish gas masks for 11 bucks a peice from cheaper than from the Fedex man. Are you getting ready??

Thu, 02/23/2012 - 12:56 | 2189448 crawldaddy
crawldaddy's picture

for what?  at its worse this depression etc will not be some madmax thunderdome shit.  Hell look at what happened to Iraq.  We collapsed the nation, destroyed their infrastructure and electric grid, put 100k soldiers in there and what happened there?  Its wasnt thunderdome.  It was a mess but life still went on.


You people need to get a grip.

Thu, 02/23/2012 - 13:30 | 2189576 the 300000000th...
the 300000000th percent's picture

I have a grip and my tone is calm and resonable. I just thought they were dirt cheap for 11 bucks why not? Have you seen the tear gas and petro bombs in the strrets of Greece? Do you really really think that can't ever happen here?? I think people that think that cant ever happen in the USA need to get a grip and wake up. I hope i never have to use them. They would be for trying to get out of or through an area where that sort of thing could be going on. Its possible, and you can't convince me otherwise. If you want to stay asleep than that is your choice, sleep I don't care. I don't believe it will be "mad max" here either. It's not "mad max" in Greece right now either. I don't think there is anything wrong with taking a few precautionary measures when thinking about the well being of my family. Believe me, I think that "hope for the best" is just as important as "prepare for the worst". I am hoping for the best but I am not seeing anything in the markets or what investment banks are doing, or what Governments are doing to persuade me to think that the crisis is over and were in a recovery or whatever other hopium is out there to make people go back to sleep. This HAS to end badly, and who knows how bad it will have to get. Do you know? Would you be willing to bet all your money on that?

Thu, 02/23/2012 - 14:01 | 2189682 Floordawg
Floordawg's picture

Out of curiosity... are you in a major metropolitan area?

Thu, 02/23/2012 - 14:08 | 2189705 redpill
redpill's picture

Not to mention that events like Fukushima can come out of nowhere.  $11 is a really cheap insurance policy.

Thu, 02/23/2012 - 13:30 | 2189579 UP Forester
UP Forester's picture

I don't know what Ivory Tower you're broadcasting from, but most folks here do have a grip.

What backs the USD?  Faith.  That's it.  When the charade is over, then what?

The US is a lot different, and bigger, than Iraq, and the amount of the world that is based on USD, while slowly shrinking, is enormous.  And what do they turn to when people realize a USD isn't worth a pre-82 penny?

Iraq's infrastructure and electrical grid is nothing compared to the fickle US grid and such.  Christ, even now SoCal is blacked out on a hot day, Texas has to buy from Mexico, and nuclear reactors are shut down for "maintenance" because they're leaking.  That'll get a lot better once utility workers realize they aren't getting paid in anything of worth, won't it?


Pull your head out of your ass, stop trolling, and take a good, hard look at the way things are shaking out.  Sure, if you've got a 100,000 hectare ranch in South America, 10 years of supplies and a private army to defend it, you'll be fine.  I prefer, as an Eagle Scout, to "Be Prepared"....

Thu, 02/23/2012 - 13:42 | 2189617 Silver Dreamer
Silver Dreamer's picture

You need to get a grip.  Did you conveniently forget the billions of dollars we spent and continue to spend there to rebuild their infrastructure?  Who's going to do that for us, hmm???

Thu, 02/23/2012 - 13:50 | 2189647 fuu
fuu's picture

Or the civilian dead.

Thu, 02/23/2012 - 14:15 | 2189714 Silver Dreamer
Silver Dreamer's picture

That too, thanks.  An occupying military force is worse than a Mad Max scenario in fact.  At least in a Mad Max scenario your enemies are easily scattered and picked off one by one.

Thu, 02/23/2012 - 22:54 | 2191610 Cathartes Aura
Cathartes Aura's picture

or the women told not to get pregnant, because DU has destroyed both male & female DNA. . . (includes military being sent back "home" too, DU takes no "sides" in this)

Thu, 02/23/2012 - 13:52 | 2189648 Uncle Remus
Uncle Remus's picture

FEMA, baby. Tommy's Holiday Camp, the camp with a difference. Never mind the shackles.

Thu, 02/23/2012 - 16:36 | 2190401 karzai_luver
karzai_luver's picture

You BEEN to Iraq. They blow up order of a hundred peeps a day that we hear about.

You BEEN to Iraq. They drive around between blast walls when they can drive.


You BEEN to Iraq.


Life went on under POL Pot - Stalin - Hitler but I don't think you need to celebrate that fact.


Not 1 in 1000 mericans would last a week in Iraq type conditions. Hell the video game and cell phone deprivations woud be too much for you dears to tolerate.


Thu, 02/23/2012 - 13:38 | 2189605 Gully Foyle
Gully Foyle's picture

the 300000000th...

And how much will those Gas Mask bongs be selling for?

Thu, 02/23/2012 - 13:49 | 2189641 Uncle Remus
Uncle Remus's picture

And its name is "Killer".

Thu, 02/23/2012 - 14:55 | 2189850 TonyCoitus
TonyCoitus's picture

Gas masks and cheap should not be used in the same sentence.

Thu, 02/23/2012 - 12:53 | 2189423 I am more equal...
I am more equal than others's picture



It has.

Thu, 02/23/2012 - 13:12 | 2189509 GeneMarchbanks
GeneMarchbanks's picture

The best thing about this article was finding out the US has an economy.

Thu, 02/23/2012 - 13:38 | 2189606 Sudden Debt
Thu, 02/23/2012 - 14:24 | 2189745 pazmaker
pazmaker's picture

LOL hahaha!   Thanks for the chuckle Gene  that was good!

Thu, 02/23/2012 - 12:53 | 2189425 Olympia
Olympia's picture

Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.

FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...

It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...


Thu, 02/23/2012 - 13:17 | 2189533 walküre
walküre's picture

If you're in Greece, donate to a Greek union. Heck, if you're fed up with the crap sandwich we're being served by the overlords just donate to a Greek union from anywhere. Not that I sympathize with "unions" in general, but a revolution has to be organized and orchestrated from some place. Greek's orthodox church leadership is against the debt enslavement and the union is the muscle that will take it to the streets. Sending a clear and precise message to the overlords that their time is up. End of story.

Thu, 02/23/2012 - 12:53 | 2189426 Sutton
Sutton's picture

Ahhhh, some DOOM from James Dale Davidson.

It's been a while.

Thu, 02/23/2012 - 12:53 | 2189431 alexwest
alexwest's picture

#13 million unemployed, the 46 million people on food stamps

excuse me..
i dont get it . 46+ mln are on food stamps? are they working? if yes, how they cant afford to buy even food ? food is cheap here ..

i wonder

Thu, 02/23/2012 - 12:56 | 2189447 SilverRhino
SilverRhino's picture

food is cheap here ..

TPTB are working to fix that as we speak. 

Thu, 02/23/2012 - 13:22 | 2189556 misnomer
misnomer's picture

Lucky is far from cheap here, and prices are climbing daily.  And when they aren't, surprisingly (or not) the companies just make the packages smaller, so you still think you're getting a bargoon, but really you're just getting screwed without knowing it...


Thu, 02/23/2012 - 13:49 | 2189639 Bullionaire
Bullionaire's picture

Hop in your Benz, leave the country club grounds and drive to the heart of the nearest ghetto.



I double dog dare you.



Thu, 02/23/2012 - 14:36 | 2189783 pods
pods's picture

Food is cheap here?

First you will have to describe your definition of food.


Thu, 02/23/2012 - 17:17 | 2190619 Seer
Seer's picture

AND, you need to factor in any externalizations (such as cheap food being loaded with HFCS, which, you know, kind of slowly KILLS you).  I submit that this is the "de-population" plan (that or there's going to be a big harvest by Aliens).

Thu, 02/23/2012 - 15:49 | 2190151 walküre
walküre's picture

are you talking about real food? not the synthetic crap they're selling as food replacements, you know.

let me know where. I will back up the truck and stock up on real cheap food.

where I shop, the shelves are getting emptier and the restocking takes longer or doesn't happen.

clue: I don't live in a hubble either

Thu, 02/23/2012 - 20:29 | 2191260 dugorama
dugorama's picture

kind of makes you wonder how reliable those unemployment numbers are, doesn't it?

Thu, 02/23/2012 - 12:53 | 2189432 UTICA CLUB XX PURE

WHAT? "13 million unemployed, 46 million on food stamps, 29% of the homeowners mortgages under water" & its en election year and all the candidates suck? [SAVE ONE]

Thu, 02/23/2012 - 12:55 | 2189436 Gomie
Gomie's picture

I'm finding it a bit more difficult to continue agreeing with guys like this. I'm not saying we're on the path to great economic growth but it has shown some strength lately and that's undeniable. At worst, maybe we muddle around for a few years no worse than we are now. At best, a self sustaining slow growth. 

I have to admit, I'm leaning more toward the slow growth scenario now more than ever. 

Thu, 02/23/2012 - 12:59 | 2189461 Terminus C
Terminus C's picture

The department of truth has a powerful sway over the masses.

Thu, 02/23/2012 - 13:07 | 2189492 BLOTTO
BLOTTO's picture

Its 'shown some strength lately' because they have been fucking around with the numbers - to get Obama back in for a second term. Plain and simple.

On my local tv station this morning for example - the ticker showed that Obama's approval rating has improved to now at 49%. Fuckin joke.

The illuminati controlled main stream media is doing a great job at manipulating, lying and fabricating the numbers to look good - for the second coming...

Obama's that is.

But -than - booooooom...something will happen to #44.

Thu, 02/23/2012 - 13:20 | 2189548 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"because they have been fucking around with the numbers - to get Obama back in for a second term. Plain and simple."


From TWIST, to 'Mark To Unicorn', To GMAC/ALLY buying 450 credit score Credit Criminals with your tax dollars to boost GM's disasterous U.S. sales numbers.

NONE OF IT IS REAL, FOLKS, but the sheeple don't know it, because we no longer have a 'Free" media in this country.


Thu, 02/23/2012 - 18:47 | 2190958 blunderdog
blunderdog's picture

Just out of curiosity: why would the mainstream media prefer an Obama re-election to someone else?

What favors has he been been doing for them?

Thu, 02/23/2012 - 13:14 | 2189517 SheepDog-One
SheepDog-One's picture

Hey GOMIE its pretty fuckin easy to show 'some signs of strength' when theyve just pumped $7 TRILLION fake dollars into bankers coffers to sop up all the bonds and stocks in sight!

Thu, 02/23/2012 - 14:24 | 2189743 francis_sawyer
francis_sawyer's picture

slow growth scenario

Since when did a "bankster" ever believe in SLOW GROWTH?...

These fuckers are "crack addicts"... Near beer just doesn't cut it anymore... They're more apt to secretly pile on the PUT side then crash the markets, than to suffer a boring period of 'slow growth'...

In banksterville... If it comes down to "slow growth" vs. WW3, they'll take WW3 everytime...

Thu, 02/23/2012 - 14:41 | 2189803 ONO47
ONO47's picture


I'll be happy to take your gold off your hands.

Thu, 02/23/2012 - 15:51 | 2190160 walküre
walküre's picture

which sector or sectors are growing?

outside of government related spending, please.

Thu, 02/23/2012 - 17:20 | 2190641 Seer
Seer's picture

"I have to admit, I'm leaning more toward the slow growth scenario now more than ever. "

Wow!  That's going out on a limb!

FYI - Perpetual growth on a finite planet is NOT a possibility, therefore, growth is guaranteed to slow down.

Thu, 02/23/2012 - 12:55 | 2189437 SheepDog-One
SheepDog-One's picture

Not surprising at all, over half of all americans are prescribed some sort of anti depressant. 

Thu, 02/23/2012 - 13:12 | 2189511 resurger
resurger's picture

am the only bear in this market i guess, which makes me feel good.

"Give me six hours to chop down a tree and I will spend the first four sharpening the axe." — Abraham Lincoln

Thu, 02/23/2012 - 17:22 | 2190648 Seer
Seer's picture

The Confederates already KNEW this, knew that he had an axe to grind!

Thu, 02/23/2012 - 12:55 | 2189439 AC_Doctor
AC_Doctor's picture

Hope & Change fukkers!

Thu, 02/23/2012 - 13:19 | 2189540 valley chick
valley chick's picture

and then on Fox Business they are claiming the market is rallying in HOPE of .....QE3.  I am feeling sick...

Thu, 02/23/2012 - 14:38 | 2189786 prains
prains's picture

shmoke & fhlames 

Thu, 02/23/2012 - 16:34 | 2190392 viahj
viahj's picture

smoke and a pancake?

Thu, 02/23/2012 - 13:01 | 2189441 Shizzmoney
Shizzmoney's picture

The same asshole in me that fist pumps everytime I see a 20-something year old single mom dealing with a whiny little kid outside of a mall, will be the same inner asshole that fist-pumps when the DOW loses -1000 in a day.

The hysteria will be scary, but considering all of the info I have gathered on these me, it's gonna be prettty fucking funny.

Thu, 02/23/2012 - 13:17 | 2189529 BudFox2012
BudFox2012's picture

What an asshole.  Of course I'll probably be sitting on the barstool next to you, fist pumping along with you as CNBC goes into panic model as the market melts down in the not too distant future :)

Thu, 02/23/2012 - 13:24 | 2189562 BLOTTO
BLOTTO's picture


Zedheds are brilliantly funny too.

Dark humour in everything...

If life wasnt so tragic - it would be funny.

Kat Williams is pretty fuckin funny (watched the other night, thats why i mentioned)

Thu, 02/23/2012 - 14:33 | 2189777 Panafrican Funk...
Panafrican Funktron Robot's picture

Kat Williams is genius.  It'll be people like him that get us through the suck with some manner of sanity still intact.

Thu, 02/23/2012 - 15:23 | 2190012 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"One of the more famous Yogi-isms might sum it up best: “It ain’t over till it’s over!”

When will we know when it's over- when CNBC is off the air and the "blow drys" are in the bread line, and the mention of stock 'investing' will invite a fist fight!

Thu, 02/23/2012 - 12:56 | 2189445 blu
blu's picture

Nobody need be confused by any of this.

We are headed for a viciously 2-tier society, a la 1800's Great Britain. 

Thu, 02/23/2012 - 13:55 | 2189664 Bam_Man
Bam_Man's picture

Headed for?

Thu, 02/23/2012 - 12:58 | 2189452 gwar5
gwar5's picture

Copy of Jim Sinclair letter. Says we will see a big financial system reset and massive can kicking by China/USA  between March 14 and 20th. Says a new monetary system will be rolled out June of 2015. I have no idea how he can be so specific.

My Dear Friends,

Today was long and enlightening for me. I made multiple meetings in New York City with significant money managers.

During these meeting the price of gold rose above the $1764 level which I have repeatedly told you is as important as $524.90 was when gold broke out of its arithmetic up trend and entered its first power up trend. I wish to remind you $1764 is the point where gold moves out of its power up trend and enters into its geometric uptrend. I have also assured you the central banks and especially the US Fed via the BIS and Exchange Stabilization Fund seek not to depress gold, but only to prevent it from running so hard on the upside as to expose the true condition of Western world finance.

There has been significant interventions in the gold price at Angel $1764 with unexpected other central bank accumulation resulting in inexplicable strength in the $1710-$1720 area.

As the strong dollar policy is clearly a policy of softening a long term decline, the interventions in gold have been to modify a desire in the market itself to go ballistic on the upside.

If there was any startling realization today it was that among true geniuses and maturity in major money managers there is a grave lack of understanding concerning the forces at work in the financial can kick of the century now about to take place.

Only one person today knows that the war with Iran starts when Iran is frozen out of the Swift system. In terms of finance, that is a nuclear attack. It was just that threat alone that made Swiss banks destroy their tradition of privacy and send their loyal clients to a mass execution, assuming that they were cheating on taxes.

Not one person I spoke to today ever asked themselves who determines if credit event is a default and what that means to the mountain of credit default swaps that US banks have vended via their non US subsidiaries. By this method the count of these OTC derivatives by the US Controller of the Currency is way short of the true amount of debt insurance banks have sold.

Only one man understood what a commodity currency was and had studied where currency induced cost push inflation had produced severe price inflation during periods of awful economic conditions brought on by all types of debt failure.

I am speaking with leaders in finance who control immense sums of money. If these people do not understand the forces at work what makes you think politicians or their college professor appointees to central banks have a better understanding? The answer is simple – they do not!

Let me share with you the conclusion I took away from today’s luncheon.

1. What is going to happen is going to take place in March somewhere between the 14th and 20th in all probability.
2. What will determine the fate of markets is what action China does or does not take in providing funds to IMF bailout funds.
3. I believe China can and will extract significant trade and other benefits for their presence.
4. I believe China will want the same immunity that the IMF just took for themselves on sovereign debt in liquidation.
5. Greek gold will be held hostage to their debt.
6. That will accelerate the modest trend of repatriation of gold for the cellar of the New York Fed to nations like Germany that are certainly able to store their own wealth.
7. There will be an acceleration in the trend of utilization of other currencies than the dollar for contracting internationally regarding goods, service, oil and minerals.
8. I do not agree that we are at the doorstep now of major changes in the international monetary system. That comes in June of 2015.
9. I am certain that we are on the immediate threshold of the monster kick of the financial can down the road that is a dead end.
10. I believe China and the US Fed will assist in that great last can kick that backfires.
11. I am certain that I am in the right business and that business is the identification and accumulation of gold as gold is the ultimate survivor of what is about to happen.
12. I am certain the gold industry is mad as a Danbury hatter in selling their product the moment they produce it.
13. I am certain the gold and silver industry is in a transition back to the dividend producers they once were.
14. I am certain that the volatility in gold, silver and equities we have already seen is nothing compared to what is about to happen.
15. The last man standing among asset categories as the new monetary system is introduced sometime post June of 2015 will be gold and gold alone.

Therefore the soundest investment now is what I, and others (McEwen) are doing in building companies whose inventories of goods to be sold are mineable ounces of gold and other precious metals in the ground moving towards production.

The immense shorts in this industry group are whacked out noobies without a clue.

New mines need never pollute. Old mines can never be cleaned up. Open pit and surface enrichment is the type of gold that will be least effected by rising costs.


Thu, 02/23/2012 - 13:01 | 2189475 Josh Randall
Josh Randall's picture

Thanks for sharing

Thu, 02/23/2012 - 13:01 | 2189476 Future Tense
Future Tense's picture

Sinclair made the big announcement last week that "according to sources" there would be no credit event in Greece and no CDS triggered.  Tyler has made the case clearly multiple times that without a law change a credit event will be unavoidable.  We'll see if Sinclair knows something regarding contract law that most traders (and Tyler) do not, since the CDS continues to trade higher.

Thu, 02/23/2012 - 13:08 | 2189495 ZeroPower
ZeroPower's picture

I dont read sinclair unless someone directs me to a must-read article, but in any case, his 'according to sources' thing is flatout bullshit. Whether CDS are triggered as ISDA declares them to be or not, in the end its up to the private counterparties of the long CDS contract to declare they want (cash settled) payout. Every single owner of a long CDS on a sovereign knows theres typically litigation involved, especially if not everyone goes over smoothly at first. Corporate defaults are much more plan vanilla, but sovereign ones are where shit gets fucked up in all sorts of issues. For this very reason, one cannot simply say 'there will be no credit even because my "sources" deem it so'.

The basis package (GRE bonds+CDS) has increased over the past week as you state, but remember even in an unwind of a position the market tends to 'adjust' for whoever is closing (and of course, could be opening) a position thats at least decently sized.

Thu, 02/23/2012 - 15:36 | 2190069 riphowardkatz
riphowardkatz's picture

Who is the judge in litigation? Who pays the judges salary? 

I am not defending Sinclair but my understanding is he never said his sources said there wouldn't be a credit event. He was merely extrapolating based on the parties involved. I could be wrong on this, maybe he did say his sources.


Thu, 02/23/2012 - 16:17 | 2190325 blunderdog
blunderdog's picture

  Every single owner of a long CDS on a sovereign knows theres typically litigation involved, especially if not everyone goes over smoothly at first.

"Litigation involved" = "depending on a government's assistance to enforce the contract"

Good luck. 

Who'd have thought the reason the global derivative collapse isn't anything to worry about is because no one's ever going to honor any of the terms?

Thu, 02/23/2012 - 13:07 | 2189493 Shizzmoney
Shizzmoney's picture

Says we will see a big financial system reset and massive can kicking by China/USA  between March 14 and 20th

The DOW, when it has its big swings (up or down), tends to happen during March, no?  The two months that were key during the 07-09 disaster were March and October. 

It's ironic for you Illuminati bugs out there too, because according to most Paegan religions, March is the Month of War, and October is the Month of Harvest.


Thu, 02/23/2012 - 13:14 | 2189519 Transformer
Transformer's picture

Awww, what does he know?  Confidence is up, things are getting better.  There's always a wet blanket.

Thu, 02/23/2012 - 12:57 | 2189453 Bunga Bunga
Bunga Bunga's picture

Debt is the problem. My Lord, please wipe out all debt.

Thu, 02/23/2012 - 14:46 | 2189812 prains
prains's picture

stealthy wealth capture is the problem

Thu, 02/23/2012 - 12:58 | 2189454 apberusdisvet
apberusdisvet's picture

The purposeful obfuscation of statistics by the govt and its bend over buddies like the NAR indicate that, even in an election year when lies are usually an acceptable norm, those that follow the orders of the banksters are having to change their underwear on a regular basis.  Can they keep the curtain closed until Obama gets re-elected?  With a flock of Black Swans on the horizon?

Stay tuned.

Thu, 02/23/2012 - 13:25 | 2189563 earleflorida
earleflorida's picture

murder [rows?] - a flock of pogrom crows in desultory flight

Thu, 02/23/2012 - 12:58 | 2189459 Genève Barbegazi
Genève Barbegazi's picture

Can't wait to see how far Brobama's spin doctors can go after March 20th to adminsiter as much pre-election hopium as possible... 



Thu, 02/23/2012 - 13:15 | 2189523 Cpl Hicks
Cpl Hicks's picture

You want to see real spin?

Just wait until October. That will be spin.

Thu, 02/23/2012 - 12:59 | 2189462 LawsofPhysics
LawsofPhysics's picture

"Could go?!?!?!" - Who are we kidding, there is no true price discovery.  mark to unicorn forever!

Thu, 02/23/2012 - 13:00 | 2189467 brodix
brodix's picture

Like a big old oak tree; It's still putting out fresh leaves, branches and acorns, even as the rot in the inside eats it out. When it falls over, the acorns will be feeding on the rot. Nature is the ultimate bitch.

Thu, 02/23/2012 - 13:00 | 2189468 daxtonbrown
daxtonbrown's picture

Yup, the welfare state is busted and the Fed is unable to coverup the collapse by pumping money. We are in a biflationary depression where real estate assets and wages fall for the little guy, but food and gas inflate. The rise in the stock market is really an indicator of dollar weakness, it is the Fed bailing out the crony investor class. Rome fell due to biflationary pressures as well.

The only thing the little guy can do is try and Go Galt by buying a little gold, growing a little food and getting off the grid as much as he can. The welfare state debt overhang is just too huge to pay off - we are Greece. The only thing saving us short term is our status as the reserve currency, but the dollar is already falling aganst he Euro. Dear Lord it is going to be rough, but most people haven't looked at the numbers and don't see the train headed down the tracks.

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