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Of Imminent Defaults And Self Deception. Kyle Bass Prepares For The Worst
In his latest letter to LPs, Kyle Bass of Hayman Capital Management, offers his tell-tale clarity on what may lie ahead for Europe and Japan. With his over-arching thesis of debt saturation becoming more plain to see around every corner, Bass bundles the simple (and somewhat unarguable) facts of quantitative analysis with a qualitative perspective on the cruel self-deception that we all see and read every day about Europe.
Whether it is Kahneman's "availability heuristic" (wherein participants assess the probability of an event based on whether relevant examples are cognitively "available"), the Pavlovian pro-cyclicality of thought, or the extraordinary delusions of groupthink, investors in today's sovereign debt markets can't seem to envision the consequences of a default.
His Japanese scenario is no less convicted, as we have discussed a number of times, with the accelerant of this debt-bomb being the very-same European debacle and his time-frame for this is set to begin in the next few months.
(h/t The Fly)
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The only way to shut down the financial parasites is the gold standard. Kadafi was killed because he wanted to trade oil for gold dinar.
This evening, pondered about the number of economic questions fronted by students to professors within the progressive Ivy League classrooms today.
Cliff Notes:
Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs -Published May 2011
Would enjoy to thoughts and/or debate.
Debt Saturation? Many, including myself have told these cunts that they cannot afford to sustain the politically motivated plan instituted.
CH-2 <<<-------------------------Click link/Watch, history repeats. In the future, Our current US President will not be re-elected to manage the global economy.
1:55:24 - 4 years ago
Commanding Heights Part Two: The Agony of Reform "As the 1980s begin and the Cold War grinds on, the existing world order appears firmly in place. Yet beneath the surface powerful currents are carving away at the economic foundations. Western democracies still struggle with deficits and inflation, while communism hides the failure of its command economy behind a facade of military might. In Latin America populist dictators strive to thwart foreign economic exploitation, piling up debt and igniting hyperinflation in the process. In India and Africa bureaucracies established to end poverty through scientific planning spawn black markets and corruption and stifle enterprise. Worldwide, the strategies of government planning are failing to produce their intended results. From Bolivia and Peru to Poland and Russia, the free-market policies of Thatcher and Reagan are looked to as a possible blueprint for escape. One by one, economies in crisis adopt "shock therapy" -- a rapid conversion to free-market capitalism. As the command economies totter and collapse, privatization transfers economic power back into entrepreneurial hands, and whole societies go through wrenching change. For some the demands and opportunities of the market provide a longed for liberation. Others, lacking the means to adapt, see their security and livelihood swept away. In this new capitalist revolution enlightened enterprise and cynical exploitation thrive alike. The sum total of global wealth expands, but its unequal distribution increases, too, and economic regeneration exacts a high human price."
The triumphalist capitalist reformers left out a crucial ingredient: a strong regulatory state to curb cronyism and kleptocracy.
Why don't they issue Eurobonds and form a council like our Congress.
This would make it that countries wouldn't entirely give up their fiscal soverignty but there would be concessions. Basically fiscal issues would be voted on by all member nations and some kind of majority would need to be reached. I just came up with this idea a few minutes ago so feel free to pick it apart.
Either that or collapse. Those are really the only options. I don't care as my country has a money printer and isn't afraid to use it and protecting yourself against inflation is easy by simply buying commodities (and guns for when shit really gets out of control)
You forgot something:
Protecting oneself from inflation, also requires that one is a freelancer or a business owner.... you know, so that one does not depend on that sucker thing called "wages".
One thing I wanted to emphasize to my above comment
As I understood the original eurobond idea was basically that countries cede their fiscal soverignty to Germany. My idea would have a more democratic approach where large issues would be voted on by all member nations. Perhaps size and scale of each country would influence the value of each vote. So for example, maybe Germany's vote counts more than Greece's but it would be in proportion to scale of each economy.
My question would be: If i were a nation, and had to decide about how to design my economic policies, regarding agents inside my country.... and agents external to my coutry..... how the fuck do other nations get to have any say in this? I mean, if for example another nation engages in unfair (and unsustainable) economic policies.... then how >>>I<<< will react to this..... will not be decided by me, but democratically?
WTF?
And let's not forget: Any so called democratic decision on a given scale, does not happen by "blank slates" voting.... that is to say, those agents that vote, do not purely vote out of free choice.... nothing is preventing previous bargaining and..... *gaps*..... bribing.... as the premises of "the vote".
Sooo, even assuming european (bank/gov) economic matters would be settled by vote... how does that prevent germany and CBs/TBTFs setting the premises before each so called vote?
What i'm trying to get at is: Your argument is based on "going for the least evil, *that still satisfies the current status quo*"... umm, yeah, from a diplomatic POV, that's quite clever.... BECAUSE it doesn't really change anything fundamental, but makes it look better.
If i were a nation, and had to decide about how to design my economic policies, regarding agents inside my country.... and agents external to my coutry..... how the fuck do other nations get to have any say in this?
The way we do it in the USA is we make treaties with other countries we do business with.
A nice thing about the treaties is that they're effectively impossible to change.
"...original eurobond idea was basically that countries cede their fiscal soverignty to Germany."
AAARRGGHH - the original eurobond idea is a bloody British/MegaBanks/FinancialTimes idea which has nothing to do with what Germany wants.
You have no idea how this is seen outside of the AngloPhone Sphere. Reading the Telegraph for "how the EuroZone works" is not going to help.
Dabolina -- stick to posting fake trades in your "paper" account. Then post some lies about how you turned $10 into $10 billion, or whatever the fuck bullshit you post on that garbage site of yours.
Finally, please don't deny it. We zipped your site, we have the images of your bogus accounts, nothing you can do will change it. Also, stop posting here like you know something. Posers who fake trades, then claim to be millionaires, have no place here.
Run along now. The kids table is ---->.
i'm fairly confident that ZH is the most attention this dude gets from any audience.
artistically, bob_d's bullshit is a pithy parody of the ORI type
Coming upon their posts is like passing a crusty kidney stone through your bleeding japs eye.
Forsooth.
Initial chuckle, then full comprehension, then gut laugh. But I'd trade that gut laugh to have never generated that mental image. Thanks for nothin. :)'
I'm just going to post this right here. I have a degree that is not worth shit (Social Sciences) and I am in my mid twenties. I know the shit is going to hit the fan in a few months or maybe two or three years. I do not have a job as of right now, I do have precious metals saved up though which I am stoked on. I was a personal trainer but I hate it. With everything that is going on in the world and the lack of jobs which i apply to every day with no hope. What field should I get into that might be worthwhile to look into? What the hell is everyone else doing around here?
Click on Chris Matenson on the left, he has a new article the future of work. He says local food transportation and handy ac people who can fix things without parts, bike shops as energy and oil will be too costly. Not a bright outlook but check out his recent video.
have you considered farming? jim rogers has a lot to say about this...easy to find online if you're interested...
jim rogers - you better start a farming business
Farming's not as easy as it looks. Even subsistance farming requires some training and you won't get much out of it compared to someone that actually knows what they're doing and has the right tools. It's a lot different than 100 years ago.
agreed...i come from a 4th generation ranching/farming family in tx...difficult work but these are difficult times
Farming. Often dirty, usually difficult, mostly relentless.
And yet. A joy open to all is the joy of solving problems. Farming is not all drudgery--it is also an unending series of opportunities to make do, to adapt, to show resourcefulness. And the homely satisfaction of each solved problem helps keep the morale up for the next ones--you know they are coming.
If it is a "family farm" that is not on the industrial model, it also has a great variety of opportunities and tasks, and much of the work is in the open air.
Could be lots worse. Good way to raise kids.
Thirty here... My wife and I have struggled just the same. I know your pain from first hand experience. My advice is to find a niche doing something productive. FOLLOW YOUR GUT. Don't let others push you into anything. Remember, the reason your in this shitty-assed predicament is because you listened to others in the first place. They led you to believe that a degree was something valuable. Fuck them.
I am trying to start a second business. The first one failed, but it did make some money beforehand. My wife has a job as a Teller. It's enough to survive. We can always fall back to the family farm when SHTF. We are lucky, but also grateful. Good luck, sir. The fact you are here means you are way ahead of your peers. The only thing I pressure you to do is to buy a firearm if you haven't already.
30 y shelf life food packages are available now for a bargainn, complete nutrition. Water purification tools, 60 gallons of clear water from most water sources - it costs less than 20 bugs. Then two guns, 2 different places to stay other than city ..and good friends. there will be a lot of fun...
i'm planning on taking gold chains off looters
@ triple a, Firearms trainer. Take some classes and get NRA certification. I did, but have not yet had the occasion to utilize my training. I live in Illinois. We are the last state in the union that doesn't provide for conceal/carry. I have to say that I am surprised by the class of people I run into nowadays that express an interest in acquiring firearms and training. 5 years ago they would have not even considered it. I don't know where you live, but for your own sake I would at least prepare myself for what's coming. Breath in through the nose 4 seconds, hold it 4 seconds, exhale 4 seconds, breath in through the mouth 4 seconds, hold it 4 seconds, exhale 4 seconds. Repeat until panic subsides, if possible.
Head for the Bakken in North Dakota. You'll find a job there, maybe one you even like. As far as what field, that depends on you -- what you are willing to do and how much you want.
good point
"only two states, north dakota and montana, have not reported budget shortfalls in any of these years"
states continue to feel recession's impact
Keep in mind therebis no housing/lodging. If you go, you need a camper shell. This should be done in the spring, severe winters and all.
Uh, not to be too harsh, but you might try to learn to actually make things, or learn a real trade. Doesn't sound like you've applied any sweat to your education, nor learned to go to bed at night truly tired after having tended to the callouses. Try a plumber or electrician apprenticeship. Perhaps farming as has been suggested. Really, something that will add to society will always be in vogue.
Biotech Research. I work in the general area of cancer research, hormonal carcinogenesis to be exact. It is very rewarding in that every small step built upon previous work leads us to the day when men and women won't be screaming in agony because their bones are cracking from mets. The requisite learning curve is steep and not at all like poli sci or social sciences as in no parties on the weekends but it is a skill that leads to something useful.
Nah, too dependent on the funding of others- will be among the first things cut when financial reality hits the fan.
Sad, but true.
Kunstler's blog posed a challenging question to all of us:
This holiday season spend a little time musing on what the re-set economy will be like in your part of the country. Think of what you do in it as a "role," or a "vocation," or a "trade," or a "calling," or a "way of life," rather than a "job." Imagine that life will surely go on, even civilized life, though it will be organized differently. Add to this the notion that you are part of a larger group, a society, and that societies evolve emergently according to the circumstances that their time and place presents. Let that imagining be your new American Dream.
Find a job with a small busines that provides necessities of some kind and has a strong local following. Work for peanuts if necessary, with a promise of future improvements. Then make yourself their indispensible employee - go out of your way to do the shit jobs, tasks other employees don't want to do, find ways to improve their bottom line, don't watch the clock, etc. Become the last guy they want to let go and they won't let you go, even if they don't _really_ need you.
Try health care while it lasts.There will be a demand for RN,Ot and PTs.wheteher the HMos will continue to pay for them,is another question.
Default bitchez!
libertarian86.blogspot.com
I love these rich dudes pontificating about cutting SS and medicare as the only path to fiscal solvency. Never a mention about the trillion dollars spent yearly on dod to keep his hummer filled. Another flag waving phony, sucking up to the zio/Blackrock 9-11 scam meisters.
Wipe out the entire DOD budget and we still have a $1 trillion annual deficit. Roll back the Bush tax cuts and the annual deficit is still $850 billion.
The federal budget was $2 trillion during Clinton's last year and is now nearly $4 trillion.
Lousy argument, heard all the time. The deficit was compounded out of many elements, none of which would have caused the current deficit alone. So, applying one "solution" or another will not solve the deficit in and of itself. Eliminate both the DOD and the Bush tax cuts for starters. Just because either one or both won't fix it doesn't mean they aren't good starts to solving the problem. Get it? Throw in a bunch more government alphabet soup agencies and we've got some real money. Add a sprinkling of government subsidies and some entitlement reform (done gradually and intelligently) and we'll get 'er done over time. The deficit didn't spring up like a rogue weed in the midst of the Grand American Dream. It was planted and cultivated by all of us, with the help of a complicit and bought-and-paid-for Congress.
That sounds like full payment on all the fiat debts, and permanent entrenchment of fiat. How does making our debt manageable end the ongoing rape? Let's encourage whatever ends fiat, and makes it impossible for governments to borrow.
Well, yeah! In an ideal world that would be the focus of our efforts. I was just destroying the same old rhetoric that permeates the MSM and got repeated here. Fox News propaganda. Easy to refute. Now, back to your supreme goal: I'm all in!
News flash: none of these expenditures is affordable on current trajectory. The social vs. military spending argument is a red herring, just as political parties are the magician's misdirection.
ES once again testing the august neckline around 1245...
I got out of it that, a situation stays stable, as long as no one panics. There's a lot to be said for remaining cool under fire. Yet, there are limits. We can say that nothing is a crisis. If the ground splits open and fire comes out of the rift, that's a crisis. This current debt boil will burst, if it doesn't get lanced and drained, soon.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
I did not realize Japan was so close to the edge. Their debt ratio almost makes ours look modest by comparison.
Mr. Bass is one smart dude.
Oh my God, he is back!
God is back?
When did God leave?
Did I miss it?
God is a he?
Since when?
God is dead.
zarathustra?
It's a pretty bad ass story he put together, and for me, his point is well taken.
He shouted.
No one seemed to care, or even hear him, they just went about their "business".
the antichrist is a powerful read...he's always been one of my favorites...i find his real life more powerful that his writings somehow...hugging a beaten horse and claiming that it was one of his old friends...brilliant, misunderstood man
Misunderstood, +1
I can't believe anyone would ever use him as an example as a Nazi, if not just because he was before the Nazis.
His letters to old friends are some of my favorite reading. Very emotionally charged, and so perceptive it makes a man want to look at the stars and think all night.
he was a philosopher and a poet...the nazis abused his legacy with help from his sister...quite tragic
Only if you saw him on the road and killed himer.
;-)
ORI
Hey, I didn't kill himer!
ummm... or maybe you are...
I wrote a movie about that.
You know Kyle's facts and figures are perfection with detail and precision, love the guy but then he is beyond vague when he says we will all go to work but life in the western world will be difficult. WTF does that mean?, give me the real end game. Banks can't pay depositors and city pension funds are gone and SS is gone. What is the deal?o. Is Kyle to public now that he has to watch what he says? Michale lewis says he has a compund and sniper rifles and on that video interview he says just a share in a ranch. I think he is really preparing. I want the TRUTH!!! Kyle says "YOU CAN"T HANDLE THE TRUTH" - that should be the title based on the Eurocrats.
I suspect Bass doesn't have a completely fleshed-out vision of what things are going to look like. One thing that strikes me is that he seems reticent with the hard predictions.
we will all go to work but life in the western world will be difficult
I have no idea what he means by this, but I thought of the following...there are places on Earth I really wouldn't feel much like living in. If you assume that the horrible difficult future will make your life a lot more like those places, I think you're in the ballpark.
People have had three years to get their stuff arranged and retool/retrain. The greatest difficulty will be determining the velocity the current initative plays out, far too many varibles at play. You've got a couple of weeks left to at least get some basic stock piles going.
TVP, rice, beans, mutlivitamins, powdered milk, water filter pitcher, potatoes (just leave them outside in the winter if the climate is right). Gas. Whatever you need, million lists on the web...
Bass is smart enough to refrain from making specific predictions about the circumstances we will inherit. Speculative remarks about the unknowable would only damage the credibility of his carefully constructed case.
A read of John Steinbeck's 'Grapes of Wrath". It might give clues to what Mr Bass is describing when he says "we will all go to work".
Picking fruit and veggies for subsistence wages might be the new old new normal.
The 1930's led to some powerful union movements that were characterized as 'communist' by those that still had some money/land.
Very few scribblers reached the level of Steinbeck. 'Cannery Row' is another example of how people delt with grinding poverty. Mack and the boys stayed drunk as much as possible, ie; when they could steal or buy some cheap wine, beer, booze, or a combination of all.
Great piece Kyle I can see how you reached the conclusion that the real estate and MBS fraud was about to colaspe the same type of process . Thanks for sharing and stop shooting those fucking beavers they won't hurt you live and let live .
Globally coordinated intervention: All day and tonight Cramer says how shamefull last night's intervention was. :-) Nice try by the WS claque to play humble and say how terrible it is that central banks bailed them out with our money once again
Such simple, rational thought....why is it that this sort of discussion is so rare? Great read.
It will be interesting to see if they can engineer another false recovery like the early 2000's with the housing boom. Got to remember that the banksters have the best and brightest working for them! That said, I pray that they fail and are brought to justice. Hope springs eternal......
sadists reside at the top
nice analysis and overview in the article.
i hope the mis-spelling of "assess" as "asses" doesn't cause Mr. (B)ass any pain there.
:)
There are a few guys who have figured it out, and Bass is one. I've been studying the future since 1989 and it's not that difficult to figure out, but it seems like so few have. I'm impressed when someone publically -- like Bass -- figures it out. I've known since 1991 (the year I invested in gold for the first time) that the American empire was on its last legs and that when it failed, the entire global economy would fail.
Now 20 years later, I can see it all so clearly. Our global economic system is flawed because it is based on growth and greed and corruption. Notice how the billionaires just keep getting richer. That is the epitomy of our system: grow or die. Well, we don't have the resources to grow into perpituity. The gig is up.
No one is paying any attention to the facts (except for guys like Bass) and they are so obvious. If China achieved the same living standards as Mexico it would be IMPOSSIBLE due to resourse restrictions. Oil alone would require 20 million bpd of increased production. That ain't happening.
Debt is now and has been growing faster than asset growth. We now have much more debt that all of the global assets. This is a RECENT phenonmenon. If you look at all of the debt facts (such as household debt, corporate debt, federal debt, etc) they point to an impending meltdown. But this is simply a symptom of the SYSTEM. Pay attention to what is happening. It is over.We have been in a countdown since 2005, when we ran out of cheap oil.
No one realizes this, but cheap energy (mostly oil) allowed us to create a global economy based on growth. That condition is gone and so is growth, well almost. We have a few more months of global growth and then it stops.
So what happens when growth stops and the debt implodes? This is the end game that Bass foresee's accurately. I saw it 20 years ago, but I was exposed to some incredible information that few have read. Once I read it, I started buying gold. People laughed at me when I told them I only invested in gold. Not so much anymore.
When the dollar gets devalued and replaced, and bonds get revalued and replaced, what do you think is going to have value? And how much of those $50 trillion in bonds are going to run to gold and silver? For those who say, precious metals are a bubble and do not have value, they will have to admit two things when price explodes: 1) That they never forsaw the demise of the dollar and bond market (when it was so obvious!), and 2) That they made a mistake by not buying any.
By the way, once Lehman declared bankruptcy I knew that was the seminal event leading to the meltdown. I'm a writer, so I decided to capature the moment and I wrote a book:
The Demise of America: The Coming Breakup of the United States and What Will Replace It. It's available on Amazon. In the book, I explain why it's over. We are now in a countdown. I give it 12-24 months and then everyone will know that it's over. What replaces the America we know and love? A new civilization. It will not resemble what exists today. If you want an idea of what is going to replace our way of life you can read my book. I'll give you a hint, the impact of spirituality (not religion) will be much more profound than what people expect. Once we stop competing with each other and learn how to create a sustainable culture, we will actually learn to love each other. As odd as that sounds.
Newager
Interesting and intriguing post. Thank you.
"Once we stop competing with each other and learn how to create a sustainable culture, we will actually learn to love each other. As odd as that sounds"
...............................
It doesn't sound odd. It sounds rediculous. You are advocating that we, meaning all human beings, change our nature. Jesus Christ advocated the same thing a couple of thousand years ago. How has that worked out?
Human nature is the one thing that has not changed throughout recorded history. That is why our bullshit detectors are set off when we read revisionist history.
Simple fix if you're a psychopathic world leader. Blow the living fuck out of the entire planet.
'Simple fix if you're a psychopathic world leader. Blow the living fuck out of the entire planet.'
Ahhh... Maybe this is what Oblammer meant by 'change you can believe in'?
Brilliant analysis but worthless as it overlooks the central fraud practiced by every nation of our world, the power of a sovereign with fiat money and a printing press to forstall default by gradual debasement of their currency and stealth theft of the accumulated wealth of their population.
Japan's survival under massive debt is the case which blows up his conclusion of unsustainability and inevitable default of sovereigns.
When one reads between all of the absolute pure bullshit lines, does it not appear that only the privileged wall st circle jerk elite are the only few allowed to escape the savage volitility of the equity markets, markets that are a death wish to the average investor. A privileged minority who really control the equity markets anyways, for example-401k, pension funds and of course (Oh yeah, I almost forgot the multi privilaged, 100% guaranteeded profit from making the rules- Insider trading, elected public officials) the bernank ass licking hedge fund community.
Mish was just live on Coasttocoastam and said todays news was announced on Sep. 15. This is old news
I'm way outta the loop; what's the deal with these hedge fund guys beginning every communique with a historical quote that summarizes the spirit of the message? Hoity toity version of the much more succient and to the point 'tl; dr' summary that is growing to become customary imo.
LOL! Couldnt agree more!
I guess it's an attempt to appear profound by association - no matter how out-of-context the actual quote is ;)
Although I realise that ZH is rapidly morphing into KB's biggest fan club, can you possibly restrain your giddy-schoolgirl adulation just a little?
KB, after all, is just another hedge-fund skimmer/operative - who, while diagnosing some of the obvious problems/causes correctly (as could anyone not completely oblivious), goes on to offer the same tired, worn-out, cliched solutions. Oh dear.
One final thing: If you're out there KB, try cutting down on the verbosity: your reports have a tiresome - not to say time-consuming - propensity to use two or three paragraphs where a sentence or two would suffice. tia.
Frankie says: "...as could anyone not completely oblivious"
Really?
Bass' point is that the dominant perception is contrary to his view, that the market is oblivious, and that the shark is way too big for the boat.
Frankie, you are colorful, but also a swaggering ankle-biter.
Re. the dominant perception is contrary to his view
Well, that's were we differ.
The propaganda - that all will be blue skies & roses, with a gererous serving of apple pie, no doubt - is contrary to his view, but the reality that most feel in their bones is anything but.
Why else do you think people are saying sayonora to the markets in droves?
Snap, snap... bark bark!
What people are feeling in their bones is nameless dread, but at the same time there is a sense that we can print our way out of trouble, however defined.
Bass, in his argument for non-linearity -- call it fail-safe point, tipping point, critical debt-service ratio -- says the failed states are beyond repair, beyond bailing.
I suspect the Fed can work its will for a while, but the end state is messy: multilateral default and re-set.
US-led jubilee?
Ummm..... I see nothing other than verbosity from you, Fwankie.....
Sorry if you find the reading above your level- not much ZH can do about that.
Wake up, dude- you're on a site that is populated by a lot of hedge fund managers;
But way to put up a last stand, Custer......
re you're on a site that is populated by a lot of hedge fund managers
Doubt it - they're too busy, at least in the Greenwich area, packing their bags & gettin outta Dodge!
Those that aren't are more than likely hunting beaver ;)
Great share on the Bass thesis ZH - Thanks
As for my two cents worth... kindly consider
Global Spring, the time is nigh...
http://www.elliottwavetechnology.com/news/940.cfm
t-r-o-l-l
troll
T-R-0-L-L
CDS are worthless now write-offs are voluntary and not a credit event. Kyle Bass will lose big time.
like MBS etc, banks made the money selling them, now we will socialize the risk when the bill comes.
THE USA has for DECENNIUMS consumed aproximately 75 % of all Capital available in the WORLD for Borrowing
The USA wants and needs to be able to continue to do so.
Also it wants to preserve its RESERVE CURRENCY STATUS .. because then it can pay what it recieves from overseas with PRINTED DOLLARS = Almost ZILCH ! . This status contributes with approx 1 - 2 % of US GDP and has been doing so for as long as we can remember !
The USA has almost NO FOREIGN CURRENCY RESERVES , anyway almost NOTHING compared to its SIZE
The US simply doesnt have the cash .. to pay for the Goods it recieves and its citicens CONSUME in anything else than ... US Dollars ..
ABOVE FACTS are the reasons behind all the PROPAGANDA perpetraded on the pages of the Wall street / City dominated Financial Times , in each and every US dominated Media outlet ... and also by a sleazy shark , named Kyle Bass . Equally ZEROHEDGE ... being american ... can see where its bottom line interests .. when all the crap is scraped away ..lies
Because even the most uneducated US citicen by now is aware that the USA is ... ripping of ..the world and has been doing so ..for a very very long time.
And in this shared KNOWLEDGE it is where the INTERESTS of The Financial Sharks of WALL STREET ( the 1 % ) is in total harmony with the unspoken INTEREST of the common US Citicen ( the 99% )
Both parties want to get SOMETHING ... for NOTHING ! But ofc .. theyl never admit to that .. and will use ANY means to maintain STATUS QUO . as we can see !
Hmmmm..... seen in this light, the US "bailout" of Europe can be seen as nothing more than a scam (to perpetuate US Dollar Reserve Currency Status) masquerading as an act of largesse, generosity etc etc.
As indicated above, the not-so-obvious beneficiaries - at least in the short-run - of the FED bailout of Europe would appear to be:
The FED apparatus & USD . Already the MSM is parroting the mantra The FED saved the Europe! The FED saved the World! Ra! Ra! Ra!
The US Taxpayer. Rather than howling in indignation that his taxes are bailing out furriners, the US taxpayer should thank his lucky stars that those dirty, rotten furriners think that the USD is actually worth something - thereby supporting his lifestyle a little longer.
"...the USA is ripping off the world and has been doing so for a very very long time."
Yes, you are right. Excercising imperial privilege. Unfortunately, there are feedback loops. We are well past Paul Kennedy's phase dubbed "imperial overstretch" -- when matters become unmanageable.
Decline is palpably obvious.
Is precipitous decline imminent?
When will Wiley feel the G-forces?
N finally.. my best friend has lived 40 Years in JAPAN . I asked him the question about the seemingly unsustainable japaneese Gouvernmental DEBT . His ANSWER was surprising and almost incomprehensible for the spoiled WESTERN PEOPLE .
And it was : The Japaneese are used to Catastrophes , Earthquaces , Tsunamies ..and ATOMIC BOMBS dropped over their cities ... they are used to LOOSE EVERYTHING... and SURVIVE ... disciplined and continuing society and Build up what was lost .. without making much noise about it
As we have wittnessed recently .
Try and compare that to what happened in New Orleans some years ago ..in the USA ! ...
AHHHH ... There You have it !
And in Analogy with what may happen in JAPAN
EUROPE has TOO MUCH DEBT .. sure ! BUT ..it is DEBT TO OURSELVES ...MAINLY . SO .. EUROPE may need to TIGHTEN its BELT ... and is in the process of doing so .... across the board !
Why is that so .. it is because EUROPE has had a POSITIVE CURRENCY and TRADE BALANCE for the bigger part of its existence . THAT ...is the BOTTOM LINE ! And not all these mysterious calculations and transactions being presented to a public as financial KNOW-HOW .. a public who have no posibility of getting behind all those fictional vehicles and artitmetics presented. BUT .. the public doenst need to ,, because all these presentations are NOTHING BUT THE EMPERORS NEW CLOTHES ! NOTHING compared to the BOTTOM LINE.
What counts is .. for ANY NATION ... the difference between what you take in and what You spend ... reality is as simple as that ! And all the financial Wizards of the World combined .. cannot make me believe anything else !
Contrary to the DEBT of THE USA .. which is DEBT for the bigger part to the REMAING WORLD and NOT even TRYING to Cut down the ever increasing NEED for BORROWING
MY GUESS is that the USA .. by propaganda is preparing the mental climate in the world ... TO RUN AWAY from its debt ... and that is what we see ... between the lines .. in most of what is beeing said ..
Like small children who do something they KNOW isnt really acceptable say to their buddies :
" But You ALSO did ..such a thing" .. something along those lines !
I'd very much like to see the personal brokerage reports of our entire Congress for the period from Friday until close of business 11-30. Given that these self-styled divinity figures are not subject to the laws of man, and were probably aware of what was in store, I'll bet Wednesday night was biscuits and gravy from one side of Capitol Hill to the other.
Forgive me for the audacity, thinking that a lowly citizen such as myself should have insight into the workings of the gods. Perhaps your newly passed law on the nature of the global battlefield will put me in my place.
I thrust a middle finger in your general direction, and no, it is not my impersonation of the Washington Monument.
Re. I'd very much like to see the personal brokerage reports of our entire Congress for the period from Friday until close of business 11-30
Hmmm... such impertinence is likely to get you 40 days in The Brig where your only companion will be the cat - the cat o' nine tails, administered on a daily basis.
Google
Section 1031 - NDAA Bill
It seems no one caught the underlying problem in the Kaiserland / Medland analogy. To wit, the public sector was too large, and eating the private sector. So no matter which solution the central bankers and politicians agreed on, the private sector shrank. Once the public sector growth tips over, their is no way out, and all roads lead to Haiti, where the only people who have anything work for the government. All developed nations are in this same boat.
David Cameron urged to distance himself from Jeremy Clarkson 'execution' rant
David Cameron was today urged to distance himself from comments made by Jeremy Clarkson, the Top Gear presenter, in which he called for striking public sector workers to be executed.
http://www.telegraph.co.uk/culture/tvandradio/bbc/8927752/David-Cameron-...
Time for a class action lawsuit on behalf of the people of the US.
Sue the Fed for debasing our currency, like any other malfeasance.
bass should chill out and do something positive. mitt romney has a plan for the economy
Mitt is a war monger. Double guantanamo ? Born on third base
sickray, a mind is a terrible thing to waste.
I wish some posters from my lurker days returned here (BK9K and before), they provide excellent insight and analysis that even a non-finance person like myself could grasp.
I like Kyle Bass, he exudes confidence and intelligence when he speaks, maybe that's part of the game from finance types.
"Pips" comments really made the hamster go faster. If I understood both Pips and Bass, things still go on, but for the majority of us that don't have true wealth (my idea of wealth is: my old firm catered to some billionaires), we're screwed...forever.
Mr. Bass had purchased $5bn. worth of credit risk from a Japanese financial institution for 15bps p.a. It'll be the new Greek CDS.