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Hugh Hendry On Europe "You Can't Make Up How Bad It Is"

Tyler Durden's picture


At The Milken Institute conference yesterday, Hugh Hendry delivered his usual eloquent and critical insights on the state of Europe. Beginning with the statement that "All of Europe has defaulted", the canny-wee-fella (translation: shrewd and cautious young chap) explained that "The political economy in Europe is such that the politicians chose to default on their spending obligations to their citizens in order to honor the pact with their financial creditors and so as time goes on, the politicians are being rejected." Between France's election of Mr. Hollande and Luxembourg's 'when times get tough you have to lie' Juncker, Hendry says the only inspiration for Europe is fiction as "you just can't make up how bad it is" as he goes on to discuss the precedent for a way forward, the grotesque distortions of fixed exchange rate regimes, why Weimar happened, why the transfer union will never happen, Ayn Rand's reality, and fear politicians are feeling.

The entire discussion is well worth watching for a sense of the underlying reality in Europe.

The underlying reality that what the European monetary union is about is not about preventing a third so-called European civil war, it is essentially about making someone (France, Germany or both) a Great Power, a European Hegemon, and a global player.

Starting at around 12:00, Hugh begins his must-watch discussion...

And begins again at around 30:00, Hendry discusses the British perspective on the impeccable logic of the German mind and why the transfer union will never happen in Europe...and why Wiemar happened...

At around 46:00, Hendry addresses Germany's emerging housing bubble (and why it won't occur) and the two forms of leverage in the world.

From 52:40, Hendry takes on the view of (disagreeing with) a weak USD and the US being supplanted as a global leader

Hendry confesses to not being able to finish reading Ayn Rand's Atlas Shrugged at around 1:02:00 and explains why (apart from its length and lack of pictures)...noting that is too depressingly real in its description of the world we live in today...

We have reached a profound point in economic history where the truth is unpalatable to the political class - and that truth is that the scale and magnitude of the problem is larger than their ability to respond - and it terrifies them.

Concluding at 1:10:10 - "we are single-digit years away from the most profound market clearing moment"

(h/t Stock Bitch)


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Wed, 05/02/2012 - 11:32 | 2391289 barliman
barliman's picture


Redundant for ZH'ers

ZeroHedge has provided the hard numbers across a braod spectrum of the problems in Europe.

When I think of Europe anymore, I visualize a continent sinking under a sea of debt while the politicians argue about the best arrangement choices for deck chairs, tableware and seating arrangements for the next EU Finance Ministers conference.


Wed, 05/02/2012 - 11:36 | 2391307 evolutionx
evolutionx's picture

This speaks volumes:

ECB Fear Indicator near record level

Banks deposited 790 billion with the ECB

Wed, 05/02/2012 - 12:03 | 2391388 Manthong
Manthong's picture

I can’t help but feel that the for all the talk of support, the Anglo-American Financial/Political syndicate has to have the plan in place plan to shoot their Franco-Teutonic EU good buddy in the leg when the debt grizzly bear gets too close to their heels.

Wed, 05/02/2012 - 12:12 | 2391412 Spastica Rex
Spastica Rex's picture

+1 use of creative imagery

I used to had been a English teacher.

Wed, 05/02/2012 - 12:25 | 2391446 Mysteerious Roo...
Mysteerious Rooshian Vooman's picture

Clever! Made me laugh.


Mysteerious Rooshian Vooman


Wed, 05/02/2012 - 12:50 | 2391529 Manthong
Manthong's picture

There is meanining buried in the "good buddy" term, too.

I guess I have to fire the proof reader. 

Wed, 05/02/2012 - 13:43 | 2391654 Oh regional Indian
Oh regional Indian's picture

hugh Hendry looks like he's been put through some kind of dishwasher in his time outside the spotlight.

He's talking his old book but it's like 2 diferent people.

And has anyone seen the new hearted cheney? Frightening. All pink and plastic surgried and WEIRD.

Euro shmooro.

While everyone is looking at the banks, don't forget what always causes the problem nowadays... insurance. If some large insurers in Europe are in trouble, we've got problems. Insurance (rates and companies) are the canaries. Always. Leading indicators par excellence. Now that BDI has taken off on it's own dreamboat journey of dis-coupling.



Wed, 05/02/2012 - 14:19 | 2391751 collon88
collon88's picture

Since June of 2010, the BDI is down about 75%.  Its recent rally off extreme oversold lows is hardly "taking off".

Wed, 05/02/2012 - 22:11 | 2392797 Ahmeexnal
Ahmeexnal's picture

Hendry states the USD has only one way to go: higher.

I'm sure he would put other peoples money on that bet. But will he place all his chips on the USD too?

Wed, 05/02/2012 - 15:24 | 2391952 ConfederateH
ConfederateH's picture

Based on Hendry's appearance and demeanor I wouldn't give him a dime to invest even if I had a billion.  The guy looks wasted.

Wed, 05/02/2012 - 21:59 | 2392773 Eireann go Brach
Eireann go Brach's picture

That's your problem you fucking idiot, because if he wore a sharp suit like some prick on Wall St then he must be bright and smart like a Banker, but people like you will ignore what he says because he does not look the part.

Wed, 05/02/2012 - 22:43 | 2392844 AldousHuxley
AldousHuxley's picture

whenever a bankster says wall st. hires best of the best who some how need to dress UP to impress,

remind them the true genius like Grigori Perelman, a brilliant mathematician from St. Petersbrug, who became famous worldwide after he had solved the Poincare conjecture, a century old problem, and has refused to accept the million-dollar prize, unemployed, living with his mother in Saint Petersburg in communist housing.

This guy has real steel balls to say FU to institutions and money.

how many banksters have the brain power to understand the problem?


Saint Petersburg Mathematical Society Prize (1991), accepted
EMS Prize (1996), declined
Fields Medal (2006), declined
Millennium Prize (2010), declined

Thu, 05/03/2012 - 00:39 | 2393014 TwoShortPlanks
TwoShortPlanks's picture

Agreed. I didn't see any well dressed Programmers during the DotCom era...they could do and wear whatever they liked

Thu, 05/03/2012 - 00:42 | 2393016 TwoShortPlanks
TwoShortPlanks's picture

....IF, they were gifted!

Thu, 05/03/2012 - 01:00 | 2393042 Ahmeexnal
Ahmeexnal's picture

yeah, if they aren't, they have to wear mini skirts, fishnet stockings and red high heels.

Thu, 05/03/2012 - 20:45 | 2395562 Quisat_Sadarak
Quisat_Sadarak's picture

Dammit! I knew I should have spent more time learning C++!

Fri, 05/04/2012 - 01:40 | 2394509 e2thex
e2thex's picture


Wed, 05/02/2012 - 22:00 | 2392780 DCFusor
DCFusor's picture

You can be wasted and make tons of dough.  I have.  Doesn't always work of course, but just having a different viewpoint helps sometimes.

I didn't notice he was making trading decisions on stage, at any rate - wasted or otherwise.  What one might do in that circumstance has little to do with what you do with your (clients) money - or the state of mind you do that in.  Kind of a different job, no?

Thu, 05/03/2012 - 01:01 | 2393041 Oh regional Indian
Oh regional Indian's picture

DC, point I was making was that he looks like he has been "put through it". His older vids, the guy is like a flux-you capacitor. Sharp, ruthless...

He looks/speaks like he's drugged/unhealthy/unwell here.


Thu, 05/03/2012 - 01:05 | 2393045 Ahmeexnal
Ahmeexnal's picture

Seems like he popped some dilaudids before going on stage.

Wed, 05/02/2012 - 22:58 | 2392862 GMadScientist
GMadScientist's picture

And that's why he manages billions while you talk about it.

Thu, 05/03/2012 - 01:24 | 2393060 q99x2
q99x2's picture

Get integrated dude. It is your own dark side you see in Hendry.

Banksters, Lawyers, and Politicians are what crimminals look like today.

Maybe you should give your dimes to them.

Wed, 05/02/2012 - 19:47 | 2392532 DaveyJones
DaveyJones's picture

Hendry's look, like his tone, his passion and his prose, are one of the better and truer analogies for what is going on. This is not just finance, it is crime and war and abuse and a tragic dramatic, cummulating moment in history. A true scotsman

Wed, 05/02/2012 - 21:56 | 2392772 The Big Ching-aso
The Big Ching-aso's picture



I talked to a guy today, a real long-time pro in the stock market.   He's getting his ass kicked because nothing's allowed to fail and get right, regardless if it's absolutely fraudulent in nature.  IOW, when he expected that regulators would finally step in and fix the egregious over the top mess - let's say with a Bank XYZ, they didn't, and he lost.

I think the key here is that 'fraud' by now is really kicking people's asses to the point that if it doesn't stop and soon, there's no other way this can end but in tears for everybody.   If the big shots go down we're all going down.    That's the last canary.

Wed, 05/02/2012 - 12:33 | 2391474 Bicycle Repairman
Bicycle Repairman's picture

Looking back at the 1970s playbook is handy, because a lot of history does repeat itself.  One of the problems the USA had then was Europe and Japan had now recovered from WWII.  Their standard of living had largely caught up and they were very competitive economically.  The benefits of winning WWII were now gone.  So Nixon arranges for the "Nixon Shocks" or "Nixon Shokku" in Japanese.  The main shock was the jacking up of oil prices.  Europe and Japan were and are utterly dependent for oil.  The gist of it is this.  We pick out junior members of the empire and have them, willing or not, take one for the team.  The past year has been a replay of that.  So Europe and Japan, BOHICA.  It was not enough in the 1970s to solve the major problems and it won't be now.

The nationalization of South American energy companies is interesting.  Spain and Europe have no military to respond to such actions.  And to a large extent China doesn't either.  BOHICA.

Wed, 05/02/2012 - 18:29 | 2392408 Nussi34
Nussi34's picture

I can´t believe Bernard Connolly!!!

From wikipedia:

Bernard Connolly is an Oxford educated British economist from a working class background[1] noted for his pessimistic analysis of the Euro. After writing The Rotten Heart of Europe: The Dirty War for Europe's Money, a negative treatment of the European Exchange Rate Mechanism, he was terminated in 1995 from his employment at the European Commission. An appeal of his dismissal to the European Court of Justice was unsuccessful.[2] As of 2011, Connolly, 61, was working as a financial consultant in New York City.[1]

You should all read that book to understand how fucked up the EU is!!!

Wed, 05/02/2012 - 23:31 | 2392923 GoinFawr
GoinFawr's picture

"...The nationalization of South American energy companies is interesting..."


"Yah, we better turn the bass up on this one..."

Wed, 05/02/2012 - 23:39 | 2392938 Yen Cross
Yen Cross's picture

 R,u Playing the Excemption Card?

Thu, 05/03/2012 - 14:48 | 2393918 GoinFawr
GoinFawr's picture

It trumps the Rewle Card as it proves it...

"Who am I to blow against the wind?"

Wed, 05/02/2012 - 13:19 | 2391597 Doubleguns
Doubleguns's picture

TD is our Hugh Hendry.

Wed, 05/02/2012 - 13:29 | 2391619 tim73
tim73's picture

What makes you think Europeans are NOT planning to do the same :)

Wed, 05/02/2012 - 12:24 | 2391442 Peter Pan
Peter Pan's picture

I can just see the final score.......Leaning Tower of Pisa 1 ......Europe 0

Wed, 05/02/2012 - 11:37 | 2391308 Rainman
Rainman's picture

Euro politicians deserve many things, but rejection is their least serious threat when the debt slaves revolt and come for them.

Wed, 05/02/2012 - 12:08 | 2391392 Bad Lieutenant
Bad Lieutenant's picture


It'd be fabulous to see the Ferguson-Hendry debate that Hendry refers to at 31:10 last week...

As always, thanks Tyler(s).  Where would we be without you giving back, not to mention in such great quantity and quality.  Also, that  Keith Weiner is quite a mind -- that 451 piece is really something and wouldn't have discovered him if zh didn't initially post it.  For folks that haven't read Weiner, the 451 and PM backwardation pieces are must-reads.



Wed, 05/02/2012 - 18:37 | 2392416 chipshot
chipshot's picture

ditto kudos TD......f***ing brilliant...

a bumper sticker should read...

                             ZERO HEDGE.COM


{you may copyright it}

Thu, 05/03/2012 - 04:26 | 2393152 heinrich6666
Wed, 05/02/2012 - 12:18 | 2391399 Zero Govt
Zero Govt's picture

so the bankers didn't work anything out at Davos 2011 then ...i'm stunned this meeting of collective minds (village idiots) came up with a blank

...and the two ECB Stress Tests (designed to "restore confidence" remember) didn't make liquidity flow and nor did printing €2 Trillion in counterfeit Euros thrown at bankrupt bankers either ...bloody hell, more blanks

these ECB 'solutions' seem to be making bankers even bigger suckers on the State nipple ...has the ECB any friggin idea when these nappy-wearing bankers can be weaned off????

Wed, 05/02/2012 - 12:54 | 2391539 walküre
walküre's picture

I think the Europeans are in utter shock and disbelief when it comes to banking.

For the most part, they consider banks as institutions holier than anything else. The wealthy Germans, French, Italians and so on are trusting these banks to "manage" their assets properly. In reality, the depositors have no friggin' clue what the banks are doing and how high their money is being levered.

I can't tell you when the bank run will start, but believe you me that once the confidence goes into the crapper there will be a massive bank run in Germany and France. At that point the ECB needs to come up with massive amounts of paper which will destroy the currency completely.

Certain and guaranteed to happen.

Thu, 05/03/2012 - 04:44 | 2393158 Zero Govt
Zero Govt's picture

the shocker is awakening from our belief system that institutions like Govt and banking can be trusted (at all)

there are good banks, though not many left in monopolised/over-legislated Europe, but regards the bank-runs they've already started in places like Greece and Spain. And why not, the banks offer zero interest (inflation rate protection) and have nothing to offer

the ECB's (and Feds) 'solutions' are now causing more problems than they solve 

someone needs to put the issue, "How can Parasites (Govt and Bankers) make Economies Productive" on the next gripping instalment of the Davos village idiot competition

Wed, 05/02/2012 - 11:40 | 2391321 SRSrocco
SRSrocco's picture


It is simply amazing to read this post and see GOLD and SILVER down again today.  With all the financial disasters taking place, gold and silver should be seeing new records.  If you have not seen my latest article on Silver you can read about it at the link below:


Wed, 05/02/2012 - 11:44 | 2391334 SheepDog-One
SheepDog-One's picture

Maybe everyone who wants to own gold and silver now does?

Wed, 05/02/2012 - 11:46 | 2391339 francis_sawyer
francis_sawyer's picture

Hendry... Big 'dollar' bull (55:28)

Wed, 05/02/2012 - 12:14 | 2391416 bobola
bobola's picture


My take on this is that the big banks will keep pushing gold and silver prices down while they keep pushing stock prices up until the pushing has no effect, and they realize they are losing too much money.

The Wizard of Oz (central planners) is safely hidden behind the curtain - Toto (reality) is nowhere in sight....

Wed, 05/02/2012 - 12:28 | 2391459 Biosci
Biosci's picture

He's in Africa with his girlfriend Rosanna

Wed, 05/02/2012 - 12:50 | 2391527 Al Huxley
Al Huxley's picture

Did you have to do that? It's been many years since I had those piece of shit songs in my head, and now they're back.

Wed, 05/02/2012 - 14:26 | 2391776 Arthor Bearing
Arthor Bearing's picture

I think a prudent planner would account for both inflation and deflation. Even extreme gold bugs (e.g. Matterhorn) ackowledge the possibility of deep deflation followed by hyperinflation.

Wed, 05/02/2012 - 19:12 | 2392477 DCFusor
DCFusor's picture

Piece of shit?  Guys who can actually play their instruments well enough to have been in-demand sidemen for the very "famous" (Frank Zappa for one, who at least was honest enough to admit it), who don't need autotune, or lip-sync tapes? 

Al, you're making your taste suspect.  Yeah, the radio overplayed a lotta stuff.  So, you did have the power to turn it off before getting burnt out on it, you know.  But you probably didn't.

Heck, I refute it thus:

Wed, 05/02/2012 - 22:43 | 2392842 sun tzu
sun tzu's picture

Get with the times. You don't need talent to be famous anymore. Look at Piss Daddy, Gay Z, Justine Beiber, Miley cCircus, Lady gagag and the rest of the clown on TV and radio these days.

Wed, 05/02/2012 - 22:48 | 2392851 buckethead
buckethead's picture

Technique does not, a great artist make.

Fri, 05/04/2012 - 03:31 | 2395996 Clashfan
Clashfan's picture

If any of you have time, this is the first chapter of an unforgettable book on the hippie movement, the rock industry, and Laurel Canyon. McGowan exposes the intel and Luciferian ties convincingly. Beware: Once you start, you can't stop. Find other chapters through the home page, and see plenty of info on Zappa and others.

Thu, 05/03/2012 - 00:04 | 2392973 GMadScientist
GMadScientist's picture

To have the ability to play instruments and then do that with it? C'mon...corporate rock still sucks!

It's not about their talent, it's about their going ass up for record companies to afford blow.

I refute your refutation thus:

Thu, 05/03/2012 - 00:34 | 2393008 Harbanger
Harbanger's picture

So they were better off with the cigar chomping old guys just putting music out there and letting the market decide, then with the Hip young executives making the decisions of what people should see and hear in the market place.

That explains a lot of the crappy music since then.  Interesting that the Hip Execs became "central planners".

Fri, 05/04/2012 - 03:31 | 2395999 Clashfan
Clashfan's picture

If any of you have time, this is the first chapter of an unforgettable book on the hippie movement, the rock industry, and Laurel Canyon. McGowan exposes the intel and Luciferian ties convincingly. Beware: Once you start, you can't stop. Find other chapters through the home page, and see plenty of info on Zappa and others.

Fri, 05/04/2012 - 03:43 | 2396006 Clashfan
Clashfan's picture

And I refute both Toto and Zappa with this:


As Strummer sings of pop music and commercial radio, in the song:

"Yes, it's time for the Dr. Goebbels

There's a tower in the heart of London
with a radio station right at the top;
they don't make the city beat;
they're making all the action stop!"

And the next two cuts rock even harder, progressively. Crank it up, and smash something.

Wed, 05/02/2012 - 12:35 | 2391478 SRSrocco
SRSrocco's picture

bobola.... your theory sounds about right.  I watched this show on PBS by FRONTLINE last night about the financial meltdown.  Even though the Banks and the Financial System did not disintegrate in 2008, they are actually so much worse off today.

The 4 years that this market has been kept alive has actually made the system even more fragile.  In my opinion, I don't see a steady increase in the price of GOLD and SILVER over the next several years.  I think we wake up one day an the WORLD HAS CHANGED and so will the price or value of these metals.

Wed, 05/02/2012 - 22:15 | 2392810 PeeramidIdeologies
PeeramidIdeologies's picture

I believe they are establishing a "relative" base line of sorts. With many banks printing in one way or another perhaps they (CBs) are trying to decide where the next round of liquidity should take the pricing of PM.

Wed, 05/02/2012 - 12:16 | 2391420 Spitzer
Spitzer's picture


He should get a spot on Fast Money.

Funny how he says, " EU politicians are deceding to default on their obligations to their creditors". That is long term Euro positive for fuck sakes.

Wed, 05/02/2012 - 12:43 | 2391504 manhunter
manhunter's picture

Agree. Imagine if the ECB printed their problems away, like the US. ZH would be screaming hyperinflation; ZH'ers can't have it both ways.

There is no need for a transfer union. The euro states will default on obligations that cannot be kept, as they should. The euro was designed to be separate from the nation/states. The central bank can't be forced to fund national profligacy, unlike in the US.

There is nothing wrong with the euro, the EU is not breaking apart, no one is leaving.

The US is the one with a problem, and will hyperinflate.


Wed, 05/02/2012 - 14:01 | 2391698 GeneMarchbanks
GeneMarchbanks's picture

I'd love to see the parity they speak of. Love it. A world where EURUSD is at parity would be truly heaven. Throw in the Loonie and Aussie for good measure. Looking forward to that FX market, hopefully soon. Maybe the Brits could join later as well.

Thu, 05/03/2012 - 02:07 | 2393091 Fluffybunny
Fluffybunny's picture

He said EU politicians are deciding to default on their promises to their constituents to honor their obligations to their creditors, i.e. austerity to pay off the banks.

Wed, 05/02/2012 - 21:37 | 2392727 chump666
chump666's picture

He knows that Europe stagflation collapse will take out Japan/Asia re: Asian Development Bank warning a few mins ago

-- ADB warns of financial contagion in developing Asia if Europe's debt crisis worsens

The ONLY inflation/safe haven (liquidity) hedge Asia has is USD's...that is it.  Like Brazil in the early 90's.

Thu, 05/03/2012 - 00:07 | 2392980 Spitzer
Spitzer's picture

Thats what everyone thinks.. Enjoy that side of the boat


Wed, 05/02/2012 - 12:05 | 2391396 savagegoose
savagegoose's picture

yeah that describes, me , i own gold and silver,. but i would give it all away. for a little bit more.

Wed, 05/02/2012 - 12:27 | 2391451 SilverTree
SilverTree's picture

"Maybe everyone who wants to own gold and silver now does?"

You are probably correct, we just want more...lots more.

Wed, 05/02/2012 - 12:27 | 2391457 tmosley
tmosley's picture

Yes, we all have enough money.  No need for any more.


Wed, 05/02/2012 - 12:34 | 2391469 Peter Pan
Peter Pan's picture

And maybe those that want to buy can't afford to do so.

Wed, 05/02/2012 - 11:46 | 2391337 smb12321
smb12321's picture

Gold and silver react to drastic economic changes.   As long as their is a fiat currency for the world (dollar) they will invest in treasuries rather than invest in precious metals.   This is NOT a crisis since we've been through at least 100 of these scenes in the past.   As one smart guy said, 'Economics is like building a long line of dominos - it takes a long time to construct but collapse is instantaneous."

Wed, 05/02/2012 - 12:00 | 2391376 scatterbrains
scatterbrains's picture

Pm's are down because folks see no reason to front run the coming fed/cia/cftc/gs orchestrated last gasp flush down of the metals. I wouldn't be surprised if the whole push higher in paper products the last few months, (while CRBQ is flat) is the equivalent of raising the anvil over RoadRunner's head. There's a good 150 to 200 SPX points that they'll knife down and trigger paper gold selling and then comes the mother of all margin hikes in gold futures and you have your physical bottom at that point.  Don't go splat under the falling anvil and keep your powder dry!    or so I'm hoping.





Wed, 05/02/2012 - 12:44 | 2391506 Peter Pan
Peter Pan's picture

Precious metals being down makes about as much sense as keeping your Euros in a European bank. The problem is twofold. First, the currency is on borrowed time and secondly the banks will inevitably close their doors.

Wed, 05/02/2012 - 13:20 | 2391603 JeffB
JeffB's picture

One also has to think there is some risk of a repeat of a government confiscation of gold (& silver?).

Or maybe some sort of "windfall profits" tax on those prescient lucky enough to have "purchased" real money.

There are obviously precedents and some current outrage of "unconscionable profits" of oil companies trying to fulfill the market demand for oil.


Wed, 05/02/2012 - 13:44 | 2391657 scatterbrains
scatterbrains's picture

Indeed if certain unpatriotic, ungrateful Americans hadn't begun to exit FRN's are money would never have collapsed into worthlessness. Now these traders are rich beyond our wildest dreams while the rest of us hard working folks go hungry. These greedy people have destroyed our country. We must do something!   *I can see that theme playing over and over and over again on CNN/CNBC/BLOOM  kinda like Sierra is now.


Wed, 05/02/2012 - 12:20 | 2391432 The worst trader
The worst trader's picture

Maybe gold is down because it's being sold to pay debts? Also you can't eat it, you can make teeth thats about it.

Wed, 05/02/2012 - 12:40 | 2391497 Peter Pan
Peter Pan's picture

There is a big difference between a movie and a photo. To say gold is down is like looking at a picture. Keep your eyes on the movie instead which has been telling a different story for over a decade as the world has unravelled.

Wed, 05/02/2012 - 13:22 | 2391607 JeffB
JeffB's picture

The worst trader: "Also you can't eat it, you can make teeth thats about it."


So you think gold has little inherent value then?

Wed, 05/02/2012 - 21:32 | 2392714 o2sd
o2sd's picture

So you think gold has little inherent value then?

I hope so. If it has inherent value, then it is a commodity subject to the vaguaries of demand.

If no inherent value, it is well suited as an agreed measure of value i.e. money.It can also (with greater difficulty) be used as a medium of exchange 'currency'. Neither of the above is practical if it has inherent value.

Of course, in the computer age, we could just as easily price everything relative to everything else, via a market. The 'currency' then would simply be a number in a database somewhere, and 'money' would be the service or good that you produce.

While easy to implement, that idea frightens the hell out of most people. But then, most people are pretty easily frightened.



Thu, 05/03/2012 - 00:38 | 2393013 RockyRacoon
RockyRacoon's picture

You've hit on one of the most important attributes of gold.   It is a luxury.   This aspect of the ancient metal is commonly left out of the list of the qualities of what money actually is.  Short of some limited (because of the cost) industrial uses, the highest and best use of gold is in jewelry and as a store of fungible trade units.   All hail gold!

Thu, 05/03/2012 - 20:53 | 2395574 Quisat_Sadarak
Quisat_Sadarak's picture

That's a good one...

Wed, 05/02/2012 - 13:05 | 2391573 Chaffinch
Chaffinch's picture

Excellent article Rocco. I don't understand why you have been red arrowed for asking this question. One point I would like to add is that this year's silver institute survey gives an increased cost of production of $7.25 (up from that ridiculous $5 figure people are for ever quoting). With ever-decreasing ore grades and ever rising fuel costs, what will the average cost of producing an ounce be for 2012? $10? And for 2013? $15? And even assuming the world's mines can produce an increasing amount from now until 2030 (which I seriously doubt because of the above factors - I think the graph from 2000 to 2030 is more likely to be bell-shaped) what would be the cost of producing an ounce by 2030?

Wed, 05/02/2012 - 13:29 | 2391591 SRSrocco
SRSrocco's picture

Chaffinch... you know what... I was just thinking the same thing.  You are correct about cost going further.  In my next article I show diesel consumption in the Gold and Copper mining Industry and how Declining Net Oil Exports will play havoc on future production.

Available Net Oil Exports peaked in 2005.  They are forecasted to decline from approximately 35 mbd in 2010 to roughly 17-18 mbd by 2020.  How on earth is the mining industry going to ramp up production if these declines do in fact come true?


The so-called $7.25 is a CASH COST derived from the top 25% of primary silver mines.  This is only a fraction of the overall costs for the total mining industry.  For example, US SILVER CORP cash costs are something like $18-$20 an ounce.

We also must remember, CASH COSTS are not total costs.  I would imagine total costs for the overall silver mining industry is more like $15 or even higher for some.  Of course Fresnillo and CANNINGTON are much lower due to the high ore grades.


Wed, 05/02/2012 - 13:32 | 2391621 Chaffinch
Chaffinch's picture

Thanks for that info about the calcs behind the $7.25 figure Rocco. So if we are only seeing the average cash cost for the top 25% these are going to be the mines with big economies of scale - and for a mine which primarily produces copper, say, then the figure would be completely arbitrary / irrelevant. Indulging in fantasy, if Apple wanted to guarantee having enough silver to make iProducts for a very long time, and wanted to invest $7.25 billion in order to get as much silver as possible within the next 10 years then they would probably acquire more ounces by buying (on the dips of course) on the spot market, than by starting from scratch by prospecting!

Wed, 05/02/2012 - 13:47 | 2391661 Chaffinch
Chaffinch's picture

And another thing Rocco. It really bugs me when stocks go down and silver gets bashed 'because it is an industrial metal'. OK, I get that the market doesn't often see it as a monetary metal, yet, or as a safe-haven hard asset, yet, but it is one hell of 'an industrial metal'. As the energy problem gets more severe silver's use in PV panels is going to increase exponentially (it already is, but it is of course starting from a low base) and its use in electronics and healthcare pits it right on the cutting edge of our technology - these areas are not going to be the first to go as the Great Recession bites deeper and deeper. I am halfway through reading the book about Bunker Hunt, 'Beyond Greed' and in early 1980 industries HAD to pay market price for silver - electronics companies had to go and borrow more - because most industries had run their stocks down when the price increased in late 1979 and they had failed to hedge. Doh!

Wed, 05/02/2012 - 13:51 | 2391671 SRSrocco
SRSrocco's picture

Chaffinch.... exactly.  Here's the deal.  The world used to based upon what is termed BOOK VALUE.  Stocks during the 1930's were to based upon their BOOK VALUE.  Whatever the company was worth by selling it was its true value.  Today the whole world is based upon EARNINGS.  Earnings are also based upon continued GROWTH.

Without the available energy, Earnings DRY UP AND BLOW AWAY.  This is why gold and silver are such good stores of value.  When the world wakes up to the reality of PEAK ENERGY and it will, there will be a mad DASH for buying and holding resources.  Fiat money will become  worthless at this time.


Wed, 05/02/2012 - 14:27 | 2391780 Chaffinch
Chaffinch's picture

They have boxed themselves in Rocco - from book value (past) to earnings (both present and future) - where can they go from here? Operation Twist - in the UK they have floated he idea of 100 year govt bonds - inter-generational mortgages haven't proved the success they hoped - and even some of the sheep are starting to realise that unfunded state pensions etc mean that we are relying on future generations having an ever-increasing income which can be taxed - it is just not going to work. The entire world has been printing paper money and 'putting it on plastic' for over 40 years, and we are now being asked to accept 'austerity' ...?

Wed, 05/02/2012 - 13:50 | 2391674 Pairadimes
Pairadimes's picture

For the Fed's fiendish fiat fuckery to succeed, they have to backstop the flight to quality at the Treasury. Can't have PMs looking good to the proles. Do the math.

Wed, 05/02/2012 - 14:49 | 2391852 masterinchancery
masterinchancery's picture

A nonsequitur.  But in any event, the manipulation of precious metals paper markets is a clear fact, just as it is now an admitted fact that western countries' central banks illegally manipulated the gold market in the 1960s. But when the scope of the problems became evident, they lost control of the market, and they will here too.

Wed, 05/02/2012 - 11:41 | 2391322 smb12321
smb12321's picture

I wonder if we're numbed by now.  A good portion of Americans could probably not find Europe on a map much less know or understand the miserable state of their economy.  For ZH followers it's a no-brainer - massive debt ---> less private capital --> worsening economy --> zero interest rates ----> more borrowing (repeat ad infinitum).  It is the bond market that is most telling - at our rate of borrowing I doubt that we will ever see reasonable interest rates.  The nation could simply not afford the interest payments.   

Wed, 05/02/2012 - 12:01 | 2391377 zerotohero
zerotohero's picture

Absolutely correct - the masses have become zombified - they lack the energy and interest to actually care. If they wake up in the morning and still find that the fridge is full, auto tank is full, cable still works, internet still numbs, booze is plentiful and reality shows suspend them from "reality" - well hells bells why would you want to listen to the likes of ZH or Nigel Farage and be awakened to a reality that basically SUCKS.

Wed, 05/02/2012 - 13:11 | 2391585 walküre
walküre's picture

If 1789' French had been able to gorge on cake, they wouldn't have demanded lower prices for bread.

Can a mirage of economy keep everyone happy, keep everyone's fridge and tank filled?

I highly highly doubt that.

If they could truly pull that off, we would have achieved Nirvana status and life on earth would be a Paradise.

Wed, 05/02/2012 - 13:35 | 2391630 t0mmyBerg
t0mmyBerg's picture

The absolute lack of understanding, basic knowledge or even any curiosity by the very large majority of people is shocking and disturbing.  I am not sure the US really differs in this respect or whether it is just part of humanity.

That said I once worked with a young woman who was educated in Chicago  public school system and we were talking about something or other and I mentioned Stalin.  She replied "Who is Stalin?"

A few years ago the National Science foundation did a survey of adults where they were asked "How long does it take the earth to go around the sun?"  Then they were GIVEN 3 choices, "a) a day, b) a month or c) a year".  Thats right, multiple choice with only three answers.  Fewer than 40% answered correctly.  For fucks sake, just randomly selected answers would have yielded 33% correct!  Sigh.

Thu, 05/03/2012 - 01:37 | 2393078 spdrdr
spdrdr's picture

Everyone knows that the sun goes around the earth in one day.  What utter morons.

Thu, 05/03/2012 - 04:38 | 2393155 Oh regional Indian
Oh regional Indian's picture

For moment there, you had me! Good one.


Wed, 05/02/2012 - 22:31 | 2392832 Buck Johnson
Buck Johnson's picture

Your exactly right, but also this is happening in the US also.  The real sick problem is that our nation doesn't handle it's money problems as well as some.  And to be honest with you our people now can't handle it.

Thu, 05/03/2012 - 00:04 | 2392979 Freddie
Freddie's picture

You think anything is better in Barrack Mugabe's America?  You are probably a serf/tard who watches TV and supports The Matrix.

Thu, 05/03/2012 - 05:06 | 2393167 Ar-Pharazôn
Ar-Pharazôn's picture

soon the only thing on which they will argue (european politicians) will be: who will be hanged first? merk? sarko? monti?

Thu, 05/03/2012 - 05:33 | 2393179 blueridgeviews
blueridgeviews's picture

I think of them arguing over what song the band should play next.

Wed, 05/02/2012 - 11:32 | 2391290 zonkie
zonkie's picture

The question is not IF anymore, the question is WHEN. When the monetary union as we know it breaks and who walks out (or is thrown out) first. A good trade is to short EU against USD because when this happens USD will rise and Euro will go down to 1.1 or even below. 

Wed, 05/02/2012 - 12:48 | 2391519 NotApplicable
NotApplicable's picture

You're not paying attention. Lincoln proved that unions are insoluble. Besides, nothing that is true today about the deficiencies of a dual monetary/political union that lacked fiscal unity wasn't already fully known and debated before the EU came into existence. Thing was, they could never get consent for the fiscal union, so they took what they could get full well knowing the rest will come once everything breaks.

Little austerity here, little fear of having to pay for it there, and pretty soon war will come along and resolve all of those pesky little inconsistencies such as "national determination."

Sure there will be some decentralization along the way, as entropy cannot be denied. This decay though, will be the very problem that will be "solved" by further centralizing government.

The only way this won't happen is if people suddenly come to their senses and realize the predatory nature of the state. Given it's nurtured them for their whole lives however, I'm not expecting any mass revelation anytime soon. They only know how to protest for more "free" stuff.

Wed, 05/02/2012 - 13:51 | 2391599 akak
akak's picture


You're not paying attention. Lincoln proved that unions are insoluble.

The current leaders of the Ottoman and Austro-Hungarian Empires, the USSR, Yugoslavia, the Kalmar Union, the Central American Confederation, the Thousand Year Reich, Czechoslovakia, the United Arab Republic, Spain + Portugal, the Netherlands + Belgium, India + Pakistan (not to mention West Pakistan + East Pakistan, i.e. Bangladesh), Ethiopia + Eritrea, Britain + Ireland, and Gran Columbia will be very relieved to hear that.

Wed, 05/02/2012 - 14:17 | 2391743 GeneMarchbanks
GeneMarchbanks's picture

Could you even point out Eritrea on an unlabeled map?

Wed, 05/02/2012 - 14:44 | 2391834 akak
akak's picture

I could label every African nation on an unlabeled map by the age of 16 or so --- couldn't you?

Or are you (as I suspect) one of those who could not correctly answer the multiple-choice question (mentioned elsewhere here today):  How long does it take the earth to rotate around the sun?

Wed, 05/02/2012 - 15:07 | 2391898 GeneMarchbanks
GeneMarchbanks's picture

Now, now let us not change the subject. Please elaborate on the Ethiopian/Eritrean topic -- specifically how it pertains to the current construct of EU politics even in metaphorical form.

When you're finished please include the multiple choices, you left them out. I'll be happy to answer as soon as you tie it all in for me.


Wed, 05/02/2012 - 15:16 | 2391920 akak
akak's picture


Now, now let us not change the subject. Please elaborate on the Ethiopian/Eritrean topic -- specifically how it pertains to the current construct of EU politics even in metaphorical form.

Speaking of changing the subject, congratulations on doing so yourself.

The many examples which I gave you (which are by no means exhaustive) prove that the blanket claim that "political unions are forever" is historically ignorant, incorrect, and specious at best.

Wed, 05/02/2012 - 15:32 | 2391974 GeneMarchbanks
GeneMarchbanks's picture

Sure. But why is the European one so specific to the other failed ones, the previously mentioned? There are many other existing political 'unions' including the States.

Who said they were forever?

Thu, 05/03/2012 - 00:08 | 2392981 Freddie
Freddie's picture

I think it is right next to Camden, NJ or East St. Louis.  Do I win a prize?

Wed, 05/02/2012 - 14:41 | 2391835 Lednbrass
Lednbrass's picture

And even beyond those examples, much has changed in the US and in world politics since 1861. I dont see that Lincoln proved much of anything, I see that the South learned alot since then.

Wed, 05/02/2012 - 22:53 | 2392855 BidnessMan
BidnessMan's picture

What Lincoln proved is how incredibly difficult it can be to keep unions together when a portion of the citizens don't want to remain in a union.  Nothing inevitable about it.  Lincoln had to kill off 10% of males in the Southern states, and Lincoln almost lost the 1864 election over draft riots.  Given British imperialism throughout the 19th century, it is pretty remarkable the Brits stood aside.  The USA union staying together was the exception - national boundaries change all the time.  

Wed, 05/02/2012 - 11:35 | 2391296 Cognitive Dissonance
Cognitive Dissonance's picture

Hugh Hendry On Europe "You Can't Make Up How Bad It Is"

Ahh.....but you can make up how good it is. And that's the secret. The worse things get the more the average Joe will want to not only hear the lie...but believe the lie. When we abandon our inner sovereign (or never nurture it to maturity to begin with) we become totally dependent upon a false external authority to create our reality.

"Daddy, lie to me again so I can believe it's the truth."

Wed, 05/02/2012 - 11:49 | 2391345 Calmyourself
Calmyourself's picture

Absolutely, the psychological component of the man in the street is pivotal to how this plays out.  Cognitive dissonance is the choice for most citizens as maturity of thought and especially true cause and effect are too painful to bear for most.  We at ZH are simply outliers.

Wed, 05/02/2012 - 12:51 | 2391534 DoChenRollingBearing
DoChenRollingBearing's picture

@ Calm and Cognitive

I wonder if the recent bout I had with "Mental Anguish" was really that much different than the bout of "Cognitive Dissonance" I went through several months ago. It felt very different...  Fortuntately, they were both mild cases, as I KNEW we are always being lied too.  And I had no (obvious) reason either episode (other than the markets tanking when I had that nasty buzzing CD...).  Maybe having gold around kept me from getting further into the dark.  Or maybe it was starting to watch cult show "Dexter"!

Wed, 05/02/2012 - 13:30 | 2391623 Cognitive Dissonance
Cognitive Dissonance's picture

It is extremely difficult to be, and remain, a contrarian. The pull of the herd is strong and seductive and many cannot remain outside the pack for long without a relapse from time to time.

The key is not that we become lost now and then, but that we find our way back afterward.

Wed, 05/02/2012 - 15:16 | 2391929 Calmyourself
Calmyourself's picture

The way I describe it is an alluring feeling I sometimes have especially when driving or doing other semi-autonomous tasks.  I find my self  drawn to thoughts that block out truth, it is if my mind fights me and the truth.  If I had cog's gift I could describe it better but it comes on me mentally in a wave of alluring thought and processes that I know are wrong my core rejects the allure but not by much sometimes.

Thu, 05/03/2012 - 01:24 | 2393062 StychoKiller
StychoKiller's picture

You were supposed to swallow the red pill, not stick it up yer nose!

Wed, 05/02/2012 - 16:40 | 2392113 Vendetta
Vendetta's picture

it is difficult to stay a contrarian.  A coworker was mentioning 24x gains on a stock pick made in 2009, another said he had sold his silver and was yakking with another about stocks.  I just want more pm's, cannot bring myself to trust equities and other choices no matter the lure.  Have a feeling the time for the hammer to drop is getting close

Wed, 05/02/2012 - 21:32 | 2392717 Winston Smith 2009
Winston Smith 2009's picture

That which cannot continue indefinitely won't.

The powers that be are desperately trying to prevent the collapse of the biggest bubble by far ever blown in the history of the world, the debt super-cycle that's been running for the past three or four decades.  With the proper, essential, adequately deep recessions being dis-allowed by central bank manipulation of interest rates over that entire period, the flushing out of mal-investments via bankruptcies which act to reset the slope of the exponentially increasing debt curve does not occur.  We are now, worldwide, in the very steep portion of that curve and it is rapidly increasing through additional debt accrued in a futile attempt to fix a debt-based problem with more debt, in the US to the tune of 10% of GDP every year for the past 3.5 years. 

Why are they doing such an obviously stupid thing, trying to fix a debt-based problem with more debt?  First, because a proper correction that would act to truly fix the problem would be extremely painful and, second, the obviously flawed, simplistic, 19th century economic models used by the economic "experts" don't even take into consideration private debt levels, permitting common sense to be overridden with the answer they want to hear - "Hey, our equations show that more debt will fix the problem with little pain."

Tell your coworker to watch this, a recent rebroadcast of an excellent 1990 PBS documentary about the 1929 crash and ask him to see if his mode of thinking is to be found anywhere in it and to note the similarity of the causes of that crash with the one we experienced in 2008 and the even deeper one that is pending:

Thu, 05/03/2012 - 00:11 | 2392982 Freddie
Freddie's picture

They can control the retard serfs with TV like The Matrix. Loads of idiots here watch Tv and support The Matrix.  F****ng sheep.

Wed, 05/02/2012 - 11:58 | 2391369 barliman
barliman's picture



The Southern Europeans fit your description of willing self delusion. The Northern Europeans (excluding France) do not. The Northern part of France is so focused on their belief in their own superior understanding of life that they usually disdain to take notice of something so bourgeosie as the truth - except when noting how lazy the people in the south of France are.

The Northern Europeans are a more dour lot with the Germans having the willingness to accept reality but preferably not in the presence of their fellow Germans. The Swedes are a distractling pleasant people who, underneath it all, are far more scary than the Geermans could ever hope to be.  The Dutch are pragmatists - I was pleased when their government decided to resign en masse weekend before last, that was very Dutch of them.  Belgium ... I like Belgians ... but they tend to be the Eeyores of Northern Europe.


Wed, 05/02/2012 - 13:01 | 2391563 Börjesson
Börjesson's picture

Interesting description of the Swedes! Care to elaborate?

Wed, 05/02/2012 - 13:30 | 2391620 barliman
barliman's picture


I was on a business trip to Sweden a few years back as part of visiting offices where I had people providing services internally to a large multi-national corporation. The local office was having an offsite party I was graciously invited to attend. This gave me time to chat socially with my local manager who was a great sailor.  When shaking his hand, I noticed his right index finger was missing but said nothing about it. (I had gotten out of construction when I was young because I didn't know anyone over 30 that was not missing part of at least one finger).

As I was asking him about sailing and where he had been, he mentioned that he had sailed across the Atlantic with his son who was a teenager at the time.  I was impressed to say the least. The number of people who have sailed across the Atlantic is a very small number. Of course, I asked him to tell me about the trip.

They had sailed down along the coast of Europe, across at Gibraltar, down along the west coast of Africa and then, after re-stocking, turnedout into the Atlantic towards the coast of Brazil. Ten days out into the Atlantic, the engine on the sailboat died. In getting it restarted, his right index finger was grabbed by a belt, pulled between the pulleys and severely damaged.  With his son's assistance, he managed to amputate the finger, dress the wound and confirm the engine was in proper working order. As best he could figure, they were still closer, in sailing time, to Africa than South America. They turned about, made port in Africa and he spent a few days in a hospital where the doctors cleaned up the wound and made sure he did not have an infection.

Then he got back on the boat with his son and they sailed across to Brazil and back, as they had originally planned. All the Swedes were well aware of the story (it had happened ten years earlier) and were very complacent about what had happened, etc.

Right then, I decided that if I was ever in a fight I wanted this fellow  on my side.   Ze Germans? Well, they are tough in their own right.

But the Swedes, they are scary tough.


Wed, 05/02/2012 - 14:02 | 2391703 gmrpeabody
gmrpeabody's picture

Or here..., this explanation is even simpler.

"Say..., are those Viking sails I see off in the distance, heading towards our shore?"

"Why yes, I believe they are. This is great..., maybe they have brought merchants that will buy our goods."

Wed, 05/02/2012 - 14:28 | 2391785 barliman
barliman's picture


Good point.

But you know how people are ... after a thousand years they tend to forget all the raping and pillaging.

Those people need to go to Ireland and see all the native born 'white' blonds that are still being born to this day.


Wed, 05/02/2012 - 18:23 | 2392395 Börjesson
Börjesson's picture

Good story! But in all honesty, I don't think the finger guy was typical for Swedes. Maybe we still have that toughness somewhere deep down (I'd like to think so!), but on the surface we're just products of the nanny state, who expect to be taken care of and can't handle adversity.

Thu, 05/03/2012 - 00:24 | 2392998 Freddie
Freddie's picture

You may want to read about their neighbors in Finalnd and The Winter War.  Tough does not even scratch the surface.  They are smart too.  Pity the hapless Russian (Soviet) conscripts during The Winter War.

Wed, 05/02/2012 - 14:01 | 2391697 John_Coltrane
John_Coltrane's picture

Indeed!  Climate/culture is destiny.  You better be very stoic, inventive and hard working when the weather is terrible most of the time.  Why would you bother working hard if "the living is easy and the cotton is high"?

Dickens said it best:  "The best steel comes from the hottest furnace"  But most still don't get it.  They want "access" to the $ and more "free stuff"

Wed, 05/02/2012 - 12:00 | 2391375 Dr. Angry
Dr. Angry's picture

And so we go, on with our lives
We know the truth, but prefer lies
Lies are simple, simple is bliss
Why go against tradition when we can
Admit defeat, live in decline
Be the victim of our own design

NOFX - The Decline

Wed, 05/02/2012 - 13:23 | 2391612 jomama
jomama's picture

never before has a lead singer of a band done so much with half an octave.

Wed, 05/02/2012 - 12:54 | 2391523 JenkinsLane
JenkinsLane's picture

“We associate truth with convenience, with what most closely accords with self-interest or personal well-being or promises best to avoid awkward effort or unwelcome dislocation of life.”

John Kenneth Galbraith


 “The truth frequently seems unreasonable, the truth frequently is depressing, the truth sometimes seems to be evil but it has the eternal advantage it is the truth and what is built thereon neither brings nor yields to confusion.”

Henry Ford
Wed, 05/02/2012 - 13:40 | 2391645 YHC-FTSE
YHC-FTSE's picture

"The worse things get the more the average Joe will want to not only hear the lie...but believe the lie"

That is so profoundly true, except perhaps we shouldn't be too hard on the average joe. With a few exceptions in present company, we are all hardwired at a subconscious level to be stupidly optimistic. It may be difficult for most people to believe this, especially those who claim to be intelligent and critical, but the sense we are consciously in control is an illusion, for we are still driven far more by our ancient survival instincts than we care to admit. The world wouldn't be full of violent, greedy arseholes being herded from one position to the next regularly if this was not so. Every time somebody declares the advances of humanity and our intellectual superiority over the animals, I want to burst out laughing. We are poorly designed, short lived animals barely able to understand the complexities of our planet, let alone the rest of the universe, and lies about ourselves are what we are best at excreting and absorbing. 

As Hendry suggests, the scale and magnitude of our economic woes are larger than their ability to respond, so they kick the can, fudge the numbers, calm the animals, point their fingers elsewhere, and cross every appendage while whispering sweet nothings in our collective ears. The fact that we let them says more about us, than it does about the scared political whores with their finger in the dyke. 

Wed, 05/02/2012 - 19:41 | 2392518 DaveyJones
DaveyJones's picture

CD you always boil it down to the psychological truth...and it usually sucks (the truth not your cooking skills)


Wed, 05/02/2012 - 11:34 | 2391298 Anton LaVey
Anton LaVey's picture

The "Milken Institute"? O-RLY?

Seriously, the irony is strong in this one.

Wed, 05/02/2012 - 11:36 | 2391309 Temporalist
Temporalist's picture
China Skeptic Hugh Hendry Turns Bullish on U.S. Stocks

Wed, 05/02/2012 - 11:40 | 2391315 krispkritter
krispkritter's picture

From this side of the pond, it's the pot calling the kettle black...

(sorry, is that rayciss? Can I say that anymore?)

Wed, 05/02/2012 - 21:36 | 2392728 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

Sounds like the Pot is a racist....calling the Kettle black and all

Wed, 05/02/2012 - 11:40 | 2391317 Ted Baker
Ted Baker's picture


Wed, 05/02/2012 - 11:46 | 2391319 francis_sawyer
francis_sawyer's picture



Wed, 05/02/2012 - 11:44 | 2391324 falak pema
falak pema's picture

Ah the day he gets nationalised; the blood sucker riding on the back of the banks; those who created the F9-Supermonkeys.

"You can't invent how bad the financialised economy is"... is what can be the ONLY response to this clever leach who sits on the back of the Ponzi Oligarchy market like the Conquistadors did on the back of Christian God to do Civilization's work in Aztec/inca/mayan lands.

Can't beat that, so its time to have your financial nuts chopped off and served as NOVA hors d'oeuvres in the best restaurant of the world. Part of the new fad of molecular cuisine. Lay on those nuts, served with scallops. 

While the bankstas burn. Euroland will have to nationalise those banks that disappear. Thats the legacy of 2008 crash, unending spiral. 

Wed, 05/02/2012 - 11:53 | 2391352 BeerGoggles
BeerGoggles's picture

And the market clearing moment is what?

Wed, 05/02/2012 - 12:19 | 2391408 Zero Govt
Zero Govt's picture

probably Mario Draghi 'retiring' ..aka being carted off to the funny farm like Trichet

Wed, 05/02/2012 - 14:45 | 2391845 Thisson
Thisson's picture

"And the market clearing moment is what?"

When the first ape says "NO."

Wed, 05/02/2012 - 11:56 | 2391361 John Law Lives
John Law Lives's picture

"You Can't Make Up How Bad It Is"

This is an ironic title for an article that has an ad for a dating site on ZH positioned right next to it on my PC screen.  You can't make up how U-G-L-Y some of the women are in the ad.  Yikes.

Then again, Jimmy Soul had something to say about ugly women in this catchy old tune...


Wed, 05/02/2012 - 12:06 | 2391397 fredquimby
fredquimby's picture



...what ads????

Wed, 05/02/2012 - 12:17 | 2391421 John Law Lives
John Law Lives's picture

Sounds like a good product.

Wed, 05/02/2012 - 19:43 | 2392521 DaveyJones
DaveyJones's picture

aren't clicks part of his income? Doesn't he provide one of the best "free" products you read on the net?

Wed, 05/02/2012 - 11:55 | 2391362 Bastiat009
Bastiat009's picture

What is said about Europe today is what I have heard about the US over the past few years.

Wed, 05/02/2012 - 11:56 | 2391365 judejin
judejin's picture

must watch - greenspan talk on markets and gold standard


Wed, 05/02/2012 - 12:02 | 2391383 zerotohero
zerotohero's picture

Absolutely correct - the masses have become zombified - they lack the energy and interest to actually care. If they wake up in the morning and still find that the fridge is full, auto tank is full, cable still works, internet still numbs, booze is plentiful and reality shows suspend them from "reality" - well hells bells why would you want to listen to the likes of ZH or Nigel Farage and be awakened to a reality that basically SUCKS.

Wed, 05/02/2012 - 12:01 | 2391384 BandGap
BandGap's picture

Hugh looks like Eddie the Eagle, the UK ski flier from the Olympics a few years ago.


Wed, 05/02/2012 - 12:07 | 2391398 blunderdog
blunderdog's picture

I like hearing that guy say "eurinations."  Hee hee.

Wed, 05/02/2012 - 12:29 | 2391464 WillyGroper
WillyGroper's picture

pee pee. fixed it.

Wed, 05/02/2012 - 12:08 | 2391404 Zola
Zola's picture

Hendry is smoking some serious Hopium putting his hopes in Banana Ben and the US Govt, yeah its great the private sector is doing well but when the US govt spends into oblivion all excess savings of the private sector and then some where is this thing headed? Political element can break an economy, just like he diagnoses in Europe he seems oblivious to that fact in US...

Wed, 05/02/2012 - 12:15 | 2391419 BandGap
BandGap's picture

He needs to get a job at the United States Office of Debt Management. Yes indeedy.

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