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Jeremy Grantham: "I, For One, Wish That The World Would Get On With Whatever Is Coming Next"

Tyler Durden's picture


We will share much more of Jeremy Grantham's latest just released must read letter shortly, but for now the following section will suffice because, in short, we agree with every single word said in it.

“Groundhog Day”


The economic environment seems to be stuck in a rather unpleasant perpetual loop. Greece is always about to default; the latest bailout is always about to save the day and yet never seems to; China is always about to collapse but instead teases us by inching down; and I swear the Financial Times is beginning to recycle its reports! In the U.S., the fiscal cliff looms along with debt limits and the usual election uncertainties. The dysfunctional U.S. Congress continues for the time being in its intractable ways. The stock market rises and falls and rises and falls again. It is getting difficult to find anything new to say at client meetings. I, for one, wish that the world would get on with whatever is coming next.


One slight change, though, is that fantastic (almost unbelievable) profit margin and earnings gains have finally weakened a little. They, together with Bernanke’s super low rates, have been the twin pillars of the market and not bad ones at all: here we are up 8% for the year in a thoroughly unsettling financial and economic world. With margins weakening, one of the twin pillars is looking shaky and price declines look more likely than before.


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Tue, 07/31/2012 - 19:39 | 2666850 lolmao500
lolmao500's picture

WW3 you mean?

Claim: U.S. forces on Syrian border
Assad considering putting military on highest alert

Russian intelligence has information that U.S. troops are in Turkey near the country’s border with Syria, a senior Syrian official told WND today.

The official said the Russians observed American forces taking part in Turkish military measures to secure the Syria-Turkey borders.

The official said the information about a U.S. military presence in Turkey has led to a debate within the Syrian leadership about whether to move the Syrian military to its highest alert level.

Currently, the Syrian army is on its second highest alert.

And as ZH reported, the US will have 4-5 aircraft carriers off Iran in a month or so. But eh, keep watching the olympics, nothing is going on!

Tue, 07/31/2012 - 19:55 | 2666883 Muppet of the U...
Muppet of the Universe's picture

I dissagree with you sir.

B/c I get the feelingyou aren't 25, and about to be drafted into a proxy war against Russia and China.

Prolong this shit.  B/c we are 1933 Nazi Germany with our own adolf hitler, and the longer the bubble is prolonged, the more time I have to move to some beach in the middle of f'ing nowhere.

Tue, 07/31/2012 - 20:10 | 2666927 Tippoo Sultan
Tippoo Sultan's picture

A "dysfunctional U.S. Congress ?"

Indeed, Grantham -- what would you have Congress do ? It is apparent that the more dysfunctional Congress becomes -- read: less meddlesome in the affairs of men and commerce -- the better for the Republic. Send them on recess for the remainder of the year, quite frankly, and the nation will be all the better for it.

Methinks Jeremy spends too much time gazing upon Boston Harbor from his suite on Rowes Wharf...managing $100 billion can have a rather ruminative and insular effect upon some.

Tue, 07/31/2012 - 21:17 | 2667122 Everybodys All ...
Everybodys All American's picture

A "dysfunctional U.S. Congress ?"

... as if this president has nothing to do with it.

Tue, 07/31/2012 - 23:56 | 2667562 AldousHuxley
AldousHuxley's picture

too much trust in one man is dangerous.


you should just rob the bank and donate to candidate of your choice. it is only $30,000 / plate.

Wed, 08/01/2012 - 03:44 | 2667869 rocker
rocker's picture

We all trust Ben Bernanke. The man who with Hank Paulson and Neel Kashkari bailed out Goldman Sachs and saved the world.

Oh yeah, as a act of kindness, Big Ben also made Goldman a Bank.  Really.  Yes Really.

These three individuals along wiht Jamie Diamon belong on trial for treason against average people.  

Wed, 08/01/2012 - 09:09 | 2668209 sessinpo
sessinpo's picture

I tend to think that a dysfunctional and divided congress is just a reflection of a dysfunctional and divided population. Which side are you on (general question for anyone and not you specifically)?

Well, I find it interesting that if you do man on the street interviews with either liberal or conservative protesters, the conservatives or modern day libertarians are much more educated and more aware of the issues and what is actually being protested.

Tue, 07/31/2012 - 21:28 | 2667143 Barry Mcokiner
Barry Mcokiner's picture

Can someone please tell me why you use the term "methinks"? It is so fucking annoying. It could be the most fascinating comment, full of insight and knowledge and then it gets fucked into tardville by a cunt who simply types "methinks".

Tue, 07/31/2012 - 21:33 | 2667161 Clint Liquor
Clint Liquor's picture

Who put sand in your vagina?

Tue, 07/31/2012 - 22:30 | 2667303 yrad
yrad's picture

With those downvotes ill call you barryrobottrader

Tue, 07/31/2012 - 22:33 | 2667315 cdude
cdude's picture

Methought, he brought out an insightful point!

Wed, 08/01/2012 - 00:35 | 2667493 TruthInSunshine
TruthInSunshine's picture

Aggregate demand destruction & deleveraging is the monster freight train that is the new unstoppable force. Nothing, no one, and no entity can stop this behemoth. In fact, the central banksters can print and dump fiat by the raw tonnage and it will only fuel this locomotive of a force.

It doesn't matter if the collapse comes in a month or 15 years, because the longer they kick the can based on current practices of sucking the lifeblood out of what are now left of or would otherwise be the productive sectors of the economy (and individuals participating in them) to support the parasitic drain that is the banking-financial-WallStreet-military complex, the more severe the collapse will be when it does arrive.

This is not an opinion (that a collapse is coming), but a factual prediction based on the laws of arithmetic. To those skeptical of this claim, I've yet to see a single rebuttal set forth coherently arguing that the collapse can be avoided short of some absolutely impossible scenario whereby real economic growth in developed nations runs at a rate that's so high that the rational amongst us can confidently claim that the real economic rate of growth cited not only can't happen, but that such projections are likely 3x to 4x what is remotely possible under the best case scenario.

I was the first (I believe) to invoke the analogy of a forest fire and controlled burns to demonstrate how radical interventionism by incredibly active fractional reserve central banks, along with concomitant radical interventionism by the treasury departments (or whatever designation they have in other nations), have broken all markets beyond the point of repair.

Just as in nature, when the scrub and brush is allowed to grow too thick, because an external and artificial force is dousing nascent fires each time a whiff of smoke fills the air, the only thing such interventionism is guaranteeing is an epic forest fire at some point in the future, since nature was not allowed to take its course earlier.

Instead of allowing for a deeper and more cleansing controlled burn in 2008 (let alone since the true credit/debt crack up boom began in the 1970s), all the fractional reserve central banks and treasury departments of developed nations have done is to allow even more highly volatile fuel to accumulate, which will lead to a far more destructive and unstoppable fire once the can can't be kicked any further.

We have had central banks intentionally producing fiat-fed bubbles, and inducing capital to chase these bubbles, for decades now, in an attempt to paper over the hollowing out of major economies around the world. The housing bubble was the best example of this phenomenom and process, as tens of millions of Americans who were formerly employed in productive sectors of the economy, but who found themselves without a career suddenly (because of hollowing out of the U.S. economy and those of major European Nations), found replacement work as real estate agents/brokers, mortgage brokers, title agents, subprime loan agents, working in infrastructure companies, or otherwise working in industries and in companies that necessarily fed off the real estate and housing boom.  This was a bubble that papered over the hollowing out of the economy- structural, despite what the very disingenuous and or incredibly errant Paul Krugman would and has claimed- and allowed people to believe that all was well and consume as if there were no future crisis lurking.

The crisis has arrived, whether people realize it or not, and the fractional reserve central bankers can't 'fix' the deleveraging that now is deeply entrenched across major economies, let alone prevent the inclination for deleveraging from affecting emerging economies.

The 'wealth accretion' that Bernanke claims he's helped create via his unprecedented, radical, 100% debt dependent, market breaking monetary policy is but an illusion and transitory mirage; another bubble that will pop as they all do.

Buckle up. Get your house in order. Get rid of any debt and superfluous expenditures. Do not take the deceptive cheap & easy credit that may be extended as part of the last gasp of fractional reserve central banks to delay the inevitable collapse (doing so just makes you and your real assets more 'harvestable'). Focus on core passions and things that you're talented at, and learn new skills that have practical benefit.

It's not a boast, but a life lesson (and one that I took to heart), when I say that I personally know people who had high 8 (and even several 9) digit checking accounts, and that I traveled with them while they lived like kings, and that almost to a person, they've gone bust now. Credit is dope. Credit based on fractional reserve, fiat printing practices is crack cocaine. And all fiat in fractional reserve banking closed loop systems equals debt, and vice-versa.

Wed, 08/01/2012 - 06:21 | 2667974 BeetleBailey
BeetleBailey's picture

Hithereto, whilst I plumped for the exchequer, I quaffed an ale of the black stuff, provided by me landlord.

Methinks someone has soiled their knickers.........

Wed, 08/01/2012 - 02:25 | 2667811 vato poco
vato poco's picture

Aw, get over it, Nancy. It's not like the guy said "Forsooth" or "Gadzooks" or some such.

Tue, 07/31/2012 - 21:56 | 2667202 mick_richfield
mick_richfield's picture

Every day that it is prolonged is another day that our species lives enslaved.

Another day we can't use to become what we could always have been, and another day closer to extinction

Another day that the vampires live by sucking your life out a hole that you can't feel in the back of head.

No, it's is not 1933.  It's not 1929.  It's not 1914.  It's something that we haven't seen before.

You don't have any more days left. 

Move to your beachfront in the clothes you are now wearing.


Tue, 07/31/2012 - 22:40 | 2667334 flacon
flacon's picture

I estimate that I am going to get 300 tomatoes this year. A bunch of cucumbers and some broccoli, green peppers and beans. I didn't see even ONE banker in my vegetable garden. It's mine. It's all mine. And nobody is going to eat it except ME and MY family. 

Wed, 08/01/2012 - 00:10 | 2667587 Admiral Douchebag
Admiral Douchebag's picture

I trust this bountiful resource doesn't form the whole of your post-apocalyptic plans.

Wed, 08/01/2012 - 00:11 | 2667590 JR
JR's picture

That's what the Little Red Hen said until the republic became a democracy and the barnyard mob voted and rewrote the manuscript. In the socialist revised version of the original, she bakes the bread and the animals who refused to share in the work all "share" in the eating, even the dog.

But, as Obama, as president, told the cheering animals: "She didn't bake that!" 

And as Michelle, as first lady, whispered to the waiting menagerie in an aside: "Someone is going to have to give up a piece of their pie so that someone else can have more."

Better luck with your tomatoes!!


Wed, 08/01/2012 - 01:08 | 2667720 Handyman
Handyman's picture

I break down my family security into 4 sections: Food, Financial, Personal, and Energy security. I'm hoping you have a more comprehensive plan together or you'll wake up to find your unprepped, starving-mad, neighbour zombies scrambling over your picket fence to devour your tomatoes.

Wed, 08/01/2012 - 09:13 | 2668237 sessinpo
sessinpo's picture

Eat it and eat it all. Now that you've reported it, the socialist (including republicans) will find a way to tax it to distribute the wealth. Thank you in advance.

Tue, 07/31/2012 - 20:54 | 2667063 reader2010
reader2010's picture

Just $1 trillion on warz are NOT enough. A few trillion more USD are needed in new Warz each year.

Tue, 07/31/2012 - 23:05 | 2667401 DeadFred
DeadFred's picture

It's not the stock it's the flow that matters.

Wed, 08/01/2012 - 08:21 | 2668097 Apocalicious
Apocalicious's picture

Disagree ardently. Both matter. Our idiot central bankers who focus solely on YoY changes constantly miss absolute levels, turning "counter-cyclical" intentions into "pro-cyclical" policy. (keywords: Greenspan, real estate bubble)

Tue, 07/31/2012 - 23:03 | 2667387 JR
JR's picture

Thanks for the big stuff, lolmao.

“Romney wants the Jewish vote.”  So, if it takes a promise of war and another million lives to get that vote, well, that’s D.C. politics. Right?  Obama wants the Jewish vote, so not to be outdone he gave Israel $70 million in additional military aid this week; but that’s D.C. politics. Right?


As retired economic professor, Michael Rozeff, put it this week regarding Romney and Israel :

“Romney's statements about Israel and America continue to escalate. When a politician tells me I have a ‘solemn duty and a moral imperative,’ about anything, anything at all, I gag. And when they tell me I must take up arms, I gag, and especially so when the frictions and troubles and antagonisms and conflicts are not of my doing but, in many respects and instances, of the doings of others and of other politicians and 'statesmen' of the past and present. And especially when they demand and take my wealth (and would take my very life) in order to kill (or make me kill) and to do abominable deeds that my conscience and moral compass reject. I am not God. They are not God. When a politician says 'follow me,' I do not follow. That's my solemn duty and moral imperative.

“If these speechmakers want to take up arms and kill, that is their business, not mine. I'll quote tenor saxophonist Lester Young ‘I can't go round thinking evil and all that shit. Everything is still cool with me, you know, 'cause I don't bother nobody. Things like that. Comes out nice. That's why I say What you do is your business. What I do is my business.'"

Wed, 08/01/2012 - 03:15 | 2667845 CompassionateFascist
CompassionateFascist's picture

The "Jewish vote" has nil significance. Jew $$$$$$$$$$$$$$$? That's significant. 

Wed, 08/01/2012 - 09:22 | 2668263 sessinpo
sessinpo's picture

Just as significant is spic, black, latino, chink, blah, blah, blah, insert whatever ethnic slur here, blah, blah, blah.....

So I took a dollar from a black dude. And I looked at him and said, "wow, this dollar is worth just as much as the jew dollar I took. I wonder if the US dollar that Lebanese is going to give me will be the same?'

Give me a break. Money has no loyalty. It's kind of like Obama bitching about Bain Capital, but yet he took $139k from them in 2008 and has taken $80k from them this year so far. LOL

Tue, 07/31/2012 - 23:38 | 2667499 10mm
10mm's picture

Do not worry about tommorow,tommorow will take care of itself.Let the war pigs work it out.

Tue, 07/31/2012 - 19:39 | 2666852 BandGap
BandGap's picture

Profit margins on the backs of elderly savers. Make no mistake, if you live and die off of bank CDs or savings you are feeling the hurt.

Tue, 07/31/2012 - 19:41 | 2666857 Colombian Gringo
Colombian Gringo's picture

Agreed. Let's not waste any more time. Hang the bankster bastards, NOW!

Tue, 07/31/2012 - 19:44 | 2666868 azzhatter
azzhatter's picture

actually you are just dying

Tue, 07/31/2012 - 20:16 | 2666966 dmger14
dmger14's picture

The elderly and boomers elected the officials that heaped this debt on our youth.  It's only fair they share in the pain they created.

Tue, 07/31/2012 - 20:26 | 2666993 dwdollar
dwdollar's picture

How dare you speak ill of the Boomers!

How dare you demand equal sacrifice from them!!!


Tue, 07/31/2012 - 20:44 | 2667037's picture

The equal sacrifice fallacy is how we got here to begin with.

Wed, 08/01/2012 - 09:29 | 2668299 sessinpo
sessinpo's picture

It's just been redefined and manipulated by government and the socialist. Sacrifice is what you should to for yourself to better yourself and thus your community. Now it is sacrificing for the community, which actually weakens the community.

In other words, we use to build strong roots. That is was sacrificing for youself, improving yourself and thus improving the community.

Now we only focus on the green leaves and fruits that are visible. That is sacrificing for the community.

Eventually the roots become weak and the tree dies. That is socialisms fallacy. Everyone loses. Not that capitalism is perfect, but at least we have a few trees left with strong roots to continue to produce.

Wed, 08/01/2012 - 09:24 | 2668282 sessinpo
sessinpo's picture

Thumbs up to both of you for political incorrect posts that speak many truths. I have often thought that the greatest generation created the worst. And the worst generation is passing it onto the next (like the generation X)

Tue, 07/31/2012 - 20:49 | 2667047's picture


The elderly and boomers elected the officials that heaped this debt on our youth.  It's only fair they share in the pain they created.


Funny thing is the boomers said ex-ex-exactly the same thing:

Tue, 07/31/2012 - 23:42 | 2667506 JR
JR's picture

Dmger baby,

not to be bragging on the boomers and the elderly, but it was the youth and the hyphenated-voters who elected Barack Obama and most of the officials "that heaped this debt on our youth."

Young voters preferred Obama over John McCain by 68 percent to 30 percent — the highest share of the youth vote obtained by any candidate since exit polls began reporting results by age in 1976, according to CIRCLE, a non-partisan organization that promotes research on the political engagement of Americans between ages 15 and 25.

And it’s the hyphenated-voters and wealthy liberals who are the mainstays of Obama’s and the Democrat constituency. Growing racial and ethnic diversity, which is concentrated among younger generations, has benefited Democrats, fact, according to Pew Center Research.

And contrary to what you imply, a majority of baby boomers have tasted the pain of hardship they didn't "create" much of their lives.  And to rub salt in their wounds, the MSM is now misrepresenting them, as you do, so the government won’t have to pay out the debased value of the Social Security and Medicare that they paid into on a contractual basis all their working lives.

At the same time, Bernanke is devaluing the purchasing power of their savings, investments, pensions, and SS; while Lyndon Johnson and a Democratically-controlled House and Senate took SS from the independent “Trust” fund and put it in the General fund so that Congress could spend it; while Jimmy Carter and the Democrat Party began giving SSI SS payments to immigrants at age 65 who had moved into the country and never paid into SS.  

But, as Wells Fargo tells us, even though a lot of baby boomers don’t have enough to retire on, they love the thought of having to keep working till they drop dead on the grindstone. My question, how many people who have enough to retire go back to work? My guess is, not very many.

And if that isn't enough, Obama made an agreement in April, 2006, as a young, Democratic senator speaking at the inauguration of the Hamilton Project (Goldman’s think tank), with his “friend Bob” Rubin for more NAFTA-type agreements and  cuts in entitlements (like social security) – just what Rubin wanted!

The documented truth is that most baby boomers, those born between 1946 and 1964, could only live “within their means” on the paychecks of two wage earners. And now, as bankonzhongguo  wrote on ZH, “Baby boomers' wealth is being vacuumed up and sent to developing markets,” or, as Jeremy Grantham writes, used as one of the “twin pillars of the market.”

Tue, 07/31/2012 - 23:57 | 2667547 grid-b-gone
grid-b-gone's picture

Here's one boomer who would be happy to see change that would help ensure my children the opportunity I had up until 2007.

Private sector workers work for 40-50 years. Public workers need to do the same. In my area, teachers, police, and fire and most public employees need only 25 yrs and are then likely to receive checks for 30-35. Some surviving spouses can stretch that to beyond 40 years.

Social Security is earned after 40 quarters. Let's extend that also to the 40-year mark, or 160 quarters. Even if a worker takes 5 years off for child care, illness, family leave, or job disruption, a 22-yr old out of college will still be able to collect by age 67.

Given a magic wand, I'd tie public worker and politicians' pay, benefits, health care contribution percentages, and required length of service directly to private sector averages. 

When the private sector taxpayer does better, those who get paid from taxes do better, but not before.

I see many young people who could do much better even under today's circumstances. Although the debt and deficit have risen dramatically, taxes have not. So, the only serious reduction of opportunity for most young people is the weak jobs market. Boomers have been hurt as well as young people in this area. 

Until that changes, do everything you can to earn opportunity during these hard times.

If you smoke, quit. Stop wasting money on stupid stuff like tats. Don't take on student loan debt for professions like phlebotomy that pay $10/hr and for which the Red Cross trains for free. Don't even take out student loans for areas of study like english, history, and communication. Run your education like a business, which means you run the numbers and know your ROI before spending cash or taking on debt.

Even if you are in a desired area of study, never put stuff like pizza in your student debt total.

Do what you have to do to succeed, not what you want. For most, that means having more roommates than you want, having a phone that is a couple revisions older than you would like (or even, gasp!, a pre-paid phone), riding a public bus, living with parents even after graduation and sometimes even after marriage, or holding down a P/T job during the prime weekend socializing times.

Boomers wish the lock box had been real. They are just as disappointed in the current state of affairs as any demographic. They lived through a time when they were seen as disloyal for having anti-government opinions, many were drafted, they built their families when mortgage rates were above 10%, retrained themselves mid-career to remain useful as technology exploded, and just saw 40% of their home values evaporate as they prepared for retirement. And you want to bitch because they are in line to receive about $350 per week, on average, starting between the ages of 65-68?

No one, not even the rich who appear to have more advantages than ever, gets through this life without enduring a period of angst or anguish. I'd suggest you do what the boomers, the Greatest Generation before them, and every generation back to the Founding Fathers who signed their lives to the Declaration of Independence did: succeed despite the challenges and limitations of the times. 

Good luck.  

Tue, 07/31/2012 - 20:50 | 2667054 DrSandman
DrSandman's picture

Screw 'em.  They're the gullable wankers that bought into the Bullshit Socialist Security Ponzi Scheme.  They are the Greediest Generation.  'Eff 'em.  Let them eat cat food, for all I care.  I will take care of my family, first, and myself second.  

Tue, 07/31/2012 - 22:24 | 2667285's picture

Some of us have folks from the Boomer generation (and older) in our families. Imagine that!

Tue, 07/31/2012 - 22:41 | 2667340 Vendetta
Vendetta's picture

Yeah, that's the spirit.  Those old fuckers made the bankers and globalists do it ....

Wed, 08/01/2012 - 09:35 | 2668315 sessinpo
sessinpo's picture

"Made"? Hardly, Enabled and bought into. I tend to think so. It is this generation that tended to think that government was the solution to everything.

Wed, 08/01/2012 - 09:33 | 2668308 sessinpo
sessinpo's picture

For you that gave a down arrow. You have yet to realize that it may not be a choice which probably means you are ill prepared for such a situation. I feel bad for you but I'll get over it. LOL

Tue, 07/31/2012 - 19:40 | 2666854 Central Bankster
Central Bankster's picture

Time for the "hope" to meet reality.

Tue, 07/31/2012 - 19:41 | 2666856 Cdad
Cdad's picture

Could not agree more.  The trouble is...the same fools that destroyed the economy are still in charge of assets and their prices.

More pink slips for bankers, please.  And let us finally get down to the task of prosecuting those who have violated the system, as well as taking apart these behemouth banks.  Let us get on with it, already!

Tue, 07/31/2012 - 21:04 | 2667094 Cursive
Cursive's picture


TPTB can't forestall it much longer.  Frustrating to watch them prop up this decadent regime for this long, though.  Excellent words from Mr. Grantham.

Wed, 08/01/2012 - 03:21 | 2667850 CompassionateFascist
CompassionateFascist's picture

You must be kidding. Not one of us, not even JW Rawles, is prepared for what's coming. The longer the scum delay it the better I like it. Methinks, tho, that we've got maybe 3-5 weeks to the IranWar------->dollar collapse. 

Tue, 07/31/2012 - 19:42 | 2666859 Ray Bones
Ray Bones's picture

 "I, for one, wish that the world would get on with whatever is coming next."

Finally. Someone (smarter than I am) said what I've been thinking.

Tue, 07/31/2012 - 19:48 | 2666871 knukles
knukles's picture

Hi, I'm Knukles.
And I approve of Jeremy's message.


Ya'll know that if it's anticipated, it can't by definition be a Black Swan.

So here's the real Black Swan (until I just mentioned it).
That there will be no crash and burn, tsunami, whatever... it'll just continue to rot away over a long time like a corpse in the jungle till nothing's left.
A long slow ghastly demise.

Go long anti-depressants.

Tue, 07/31/2012 - 19:53 | 2666892 fonzannoon
fonzannoon's picture

You said it knukles. I can tell you my generation (mid 30's) have resigned themselves to the idea that this is what it is. They can't change the system and there is no point in fighting it. Everyone on here sits at their computer with sticks in their eyes waiting for the big post that is not coming. This could go on for a very very very long time.

Tue, 07/31/2012 - 20:11 | 2666947 tekhneek
tekhneek's picture

I won't say that I agree, or disagree with you, but what I will do is quote someone smarter than me:

"Crisis takes a much longer time coming than you think, and it happens much faster than you would have thought."

... and one more:

"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident."

Tue, 07/31/2012 - 20:17 | 2666964 fonzannoon
fonzannoon's picture

I don't even agree with me half the time. The main course is trying not to going broke slowly. The side dish is trying not to lose your mind.

Tue, 07/31/2012 - 21:09 | 2667104 Cursive
Cursive's picture


I agree we will be going down for several years.  There's nothing much the next presidential administration can do for the next 4 years.  However, there will be periods during that 4 years which will definitely be "crash" worthy.

Tue, 07/31/2012 - 23:53 | 2667539 Think for yourself
Think for yourself's picture

We're always waiting for the crash. Waiting for what comes next. Waiting for fraudsters to get jailed. Waiting for presidents to be impeached. Waiting for international corps to get sued, dismantled. Waiting for unethical laws to be struck down. Waiting for the matrix to run out of batteries...

Meanwhile, that very matrix feeds off our hopelessness. It feeds off our despondency. It feeds on our fear. It even feeds off our righteous anger.

Some think, this can't go on. It will stop, crash and burn by itself. They keep taking part in it, even while they take on themselves the role of the loser.

Others grab their balls in their hands, and say, I cannot let this go on. It has to change. I will fight it! They keep taking part in it, becoming resolute in coming out the winner.

Although one looks better than the other, it isn't. Fighting against the system is falling into the game. The game is conflict; the game is one of negative emotions. Whether you feel fear because you think you are losing, or anger because you think the system shouldn't be allowed to win - in either case you fall into the game, you pick a side. Either you will win or you will lose.

But the game is rigged. You can't win. Not by remaining who you are. The matrix wields much more force than you have power - at least until you actually develop your power, in a way that the game doesn't let you conceive. You'll have to fight dirty. You'll have to be treacherous; you'll have to use violence. By the time you win, you'll have lost; you'll be one of them.

The only winning move is not to play.

Withdraw yourself from that fight; remove the conflict for your life. The world is as it is; there is suffering, there is egoism, there is violence, there is treachery, there is fear. Let it be, raise yourself over the muddy, heaving waters. Fly above the conflict, so that you may remain unaffected.

Then you realize your liberty. You realize your sovereignty; you don't need to be affected, and you only are if you decide to take part. Then you can start fixing yourself, making yourself whole, healthy, holy. You can work to substract yourself of the mechanicalness of it all, of the conditionnings, deep ruts dug in the individuals and the collective, over millenia and millenia. You can become a master of yourself.

Then, once you interact with the reality around you, it won't be as a machine, as a cog, as a prop. You won't be living in conflict solely because the world around you is conflicted; you'll know how to substract yourself from outside influences, how to be your own sovereing; how to be a real actor, a creator of your experience. Instead of the affected, you will be the effecting.

Only then does the real change begin. How can you change something, how can you direct yourself, when you let who you are be defined by what is going on outside of yourself?

Find your center. Anchor yourself deeply. From that stability you can go out and explore; you can reach out.

There is real truth in this; real revolution can only start from within. 

Tue, 07/31/2012 - 20:57 | 2667075 Red Heeler
Red Heeler's picture

. . . . and don't forget: "Just because something is inevitable doesn't make it imminent."

Tue, 07/31/2012 - 21:54 | 2667196 JLee2027
JLee2027's picture

 Isaiah 46:9-10

I am God, there is no other; I am God, there is none like me. At the beginning I foretell the outcome; in advance, things not yet done. I say that my plan shall stand, I accomplish my every purpose.

Wed, 08/01/2012 - 00:37 | 2667647 Temporalist
Temporalist's picture

I could swear Charles Manson said something nearly identical to that.

Wed, 08/01/2012 - 23:57 | 2671130 JLee2027
JLee2027's picture

If that was supposed to be cool or some kind of humor, I missed the point. 

Tue, 07/31/2012 - 20:47 | 2667044 Melin
Melin's picture

It went on and on and on as it had been until 2008.  And then it didn't.  

It's hard not to want to rip the bandaid "right off!" But the ideas held by a rather significant number of individuals around the globe aren't lookin' too good freedom-wise.  I don't think Lady Liberty's going to be part of the welcoming committee on the other side.  

The only sticks in our eyes are on charts of wildly manipulated markets.  Lots of learning has been going on as we sit at our computers.  Consider the knowledge base now available.  The fact that you cannot have individual freedom without economic freedom is well documented and discoverable by billions of people. 

It doesn't have to stay this way but we need more time if full-blown collapse is the alternative.


Tue, 07/31/2012 - 19:52 | 2666894 Cdad
Cdad's picture

Anti-depressants are already wildly overbought.

Tue, 07/31/2012 - 19:55 | 2666900 Tippoo Sultan
Tippoo Sultan's picture

Perhaps, but if that rotting piece of unfortunate carrion finds itself in the path of a marauding party of marabunta -- the "soldier ant" -- it will be naught but bleaching bones within five minutes.

Oft times, a ghastly end is swift in coming.

Tue, 07/31/2012 - 20:05 | 2666928 Tango in the Blight
Tango in the Blight's picture

Hey at least we have Word Feud and Smurfberries to keep ourselves busy with!

Tue, 07/31/2012 - 20:07 | 2666937 Hulk
Hulk's picture

 "The Great Malaise"


Wed, 08/01/2012 - 00:10 | 2667589 grid-b-gone
grid-b-gone's picture

Knuckles, the "jungle corpse economy" is a perfect description.

Geithner and Bernanke have been saying all along that we are nothing like Japan, so we are probably just about like Japan - heading to 200% debt/GDP before markets show signs of rejecting central bank intervention.

Wed, 08/01/2012 - 09:37 | 2668324 sessinpo
sessinpo's picture

"Finally. Someone (smarter than I am) said what I've been thinking."


Trust me, you're probably smarter then the majority of politicians screwing up all our lives.


Tue, 07/31/2012 - 19:42 | 2666860 Seasmoke
Seasmoke's picture

you and everyone here at ZH

Tue, 07/31/2012 - 21:12 | 2667108 Cursive
Cursive's picture


LOL.  Reading that gave me a visual that we're in a holding cell in the county lock-up.  The company ain't so bad, though.

Tue, 07/31/2012 - 22:25 | 2667288 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

The company ain't so bad, though.

Fine, you sit next to RoboTrader then.  Cool?

Tue, 07/31/2012 - 19:42 | 2666861 buzzsaw99
buzzsaw99's picture

from wiki:

In general relativity, an event horizon is a boundary in spacetime beyond which events cannot affect an outside observer. In layman's terms it is defined as "the point of no return" i.e. the point at which the gravitational pull becomes so great as to make escape impossible. The most common case of an event horizon is that surrounding a black hole. Light emitted from beyond the horizon can never reach the observer. Likewise, any object approaching the horizon from the observer's side appears to slow down and never quite pass through the horizon, with its image becoming more and more redshifted as time elapses...

Redshifted bitchez.

Tue, 07/31/2012 - 19:47 | 2666873 francis_sawyer
francis_sawyer's picture

I, for one, Wish that Jeremy Grantham would finally be right (Not that I blame him... PARTICULARLY, for being wrong)...

Note to all you:

-Elliott Wavers

- Mish disciples

-& other such types


Your main problem is that you put more faith in GURU ANALYSIS than you do in your own lyin eyes... MARKETS ARE MANIPULATED... Fucking get over it... Don't worry... Eventually Humpty Dumpty WILL, IN FACT. have a great fall... Believe in YOURSELVES to identify that moment (& prepare for it's coming)...


Sincerely ~ francis_sawyer

Tue, 07/31/2012 - 19:51 | 2666891 Cdad
Cdad's picture

When you say "guru", are you talking about equity analysis at JPM, BAC, C, etc?

Tue, 07/31/2012 - 21:50 | 2666924 francis_sawyer
francis_sawyer's picture

'Equity Analysis'?... BWAHAHAHAHAHAHAHAHAHAH! (like anyone even gives a FF... Goddamn GOLDMAN can't even put out a blurb anymore without being laughed off the planet)...


No I'm talking about all the other shit... Look ~ I empathize with Grantham (& dog knows I'm not managing billions of OP's$)... But Jesus Herman Christ...

There's only ONE SOLUTION anymore... It's name? 'CAN KICKING'... Say any fucking thing you want to you as long as it keeps other peoples gold closer to your greedy little fingers...

"Get on with Whatever"?... OK, I'll bite... Here's the next 6 months...


- Olympics (not done yet ~ even the space alien invasions & terrist attacks on 8/4 & 8/11 to deal with there)

- Jackson Hole

- Hamptons fortnight (don't think the world is going to end during a yacht party do you?)...

- Labor Day

- Start of NFL season (keeps the sheep distracted)

- EOQ3/EO fiscal year (more pennies to pick up in fronto of the steamroller)

- the LECTIONS in November (can't miss that fucking sideshow now can we?)

- Even the goddamed Mayas (Dec 21st)...

So Grantham is calling to "get on with it" in August?... He must be out of his fucking mind... This party is just getting started!


now let's 'have at it' with the percursory junks from 'fuu' & 'dick_in_the_house'...

Tue, 07/31/2012 - 19:48 | 2666878 Gromit
Gromit's picture

Be careful what you wish for....

Tue, 07/31/2012 - 19:59 | 2666911 mick68
mick68's picture

Wishing has nothing to do with it. This is inevitable, and I'd rather get on with the dentist's appointment rather than have it hanging over my head forever and ever. All the fools mucking about in their money right now will be crying in ashes within 6 months. This thing isn't going down the way the elites think it will.

Things are going to go sideways.......

Tue, 07/31/2012 - 21:01 | 2667084 AbelCatalyst
AbelCatalyst's picture

There will be a time when we will all beg to have this muddle through time back, this eye of the storm... Yet, the darkest hour precedes the dawn... Greed will get swept away along with all the materialism... You hold to it and suffer or let it go and be free!! Each of us will have many opportunities to make this simple choice... Choose well ZH'ers!!

Just because you know it's coming does not put you in a better position to make the correct choices...

Tue, 07/31/2012 - 20:14 | 2666963 Things that go bump
Things that go bump's picture

Indeed, when I think of what comes next, I fear it involves emaciated corpses and mass graves.  

Tue, 07/31/2012 - 19:50 | 2666882 Ima anal sphincter
Ima anal sphincter's picture

New traitors will be elected in November. They'll sit their asses in their spiffy new chairs in January. When everyone is comfortably situated and all instructions understood.......look out.

Whatever comes down, it will not be good for the American people. Everything that is left that can be stolen, will be.

The spring is fully loaded to the pissed off position. I hope all the pukes get exactly what is coming to them when it unwinds.

Tue, 07/31/2012 - 19:56 | 2666904 mick68
mick68's picture

This won't take until spring to go down. The events start fall/winter and keep coming in rapid fire succession until the world is in flames.

Tue, 07/31/2012 - 19:55 | 2666897 Freewheelin Franklin
Freewheelin Franklin's picture

It's like fucking soap opera.

Hint: Luke and Laura will never actually get married.


edit:  Actually, by the time they do, everyone will be so poor, no one will give a fuck.

Tue, 07/31/2012 - 19:54 | 2666898 mick68
mick68's picture

More humiliating than a resounding fall is the ridiculous flailing about in a vain attempt to avoid the fall.

Tue, 07/31/2012 - 19:57 | 2666906 cherry picker
cherry picker's picture

Why?  So many people want this thing to unravel right now, do they not realize they will feel it too.

Don't kid yourself, if there is another world war, this time the rebuilding won't be as quick or profitable as the last time.

Tue, 07/31/2012 - 20:16 | 2666962 RobertMugabe
RobertMugabe's picture

The morons in the comment section of ZH fail to recognize this fact. They sit at home fantasizing about how rich they'll be with their FAZ positions and ounces of silver. Their smuggness with which they hope for the end of our capital markets and currency hegemony is astounding. Truely some of the most disillusioned, uninformed people i've ever seen. The irony of course being that most of them consider themselves to be "sheepdogs" for the "sheeple". Fucking brilliant satire and the'yre completely unaware

Tue, 07/31/2012 - 20:19 | 2666976 RobertMugabe
RobertMugabe's picture

Junk me but no reply to the substance of what was said. Typical ZH reader - TOTAL PUSSIES

Tue, 07/31/2012 - 20:26 | 2666990 fonzannoon
fonzannoon's picture

I can tell you this much. I am not smug and all knowing. There are a few of those types on here in both direction. You have the S&P buying and treasury holding "patriotic" shmucks. You also have some people who think holding a few ounces of gold will elevate them to the next 1% if/when the bottom falls out and they know damn well it will. It's always just around the corner.

Most people on here are just trying to get some real information and grasp the enormity of the situation and try to hopefully get themselves and their families through it.

I did not junk you. But you seem like an asshole.

Tue, 07/31/2012 - 20:36 | 2667019 RobertMugabe
RobertMugabe's picture

Most people on here are just trying to get some real information and grasp the enormity of the situation and try to hopefully get themselves and their families through it.

And to those people, I wish the best of luck. No doubt we are living in strange and trying times. But what is simply appalling to me is the overwhelming majority of the people who leave comments on this site seem to be gleefully rooting, cheering, praying for the destruction of the dollar's reserve status. They seem to want another world war just to justify keeping an arsenal of automatic weapons in their basement, just waiting for the chance to blast some motherfucker' comin' for their bullion and baked beans. To reitierate, not trying to shit on everybody who reads ZH, but to the people who think that your measly collection of metal will allow you to live like a king during a currency collapse, you are gravely mistaken

Tue, 07/31/2012 - 20:48 | 2667048 fonzannoon
fonzannoon's picture

I hear you. I think you can break those people down into two types. You have the stop the QE crowd, tank the markets, save the dollar, restructure private/public debt and start over. Everyone takes a hit but we pull through. Then you have the I bought two gold eagles so let them QE until we hyperinflate to death and I win by default crowd.

I know I am in the first camp, but what are the chances people come together and take a collective hit? I doubt it.

Tue, 07/31/2012 - 20:53 | 2667059 RobertMugabe
RobertMugabe's picture

I always knew there were intelligent posters here on ZH, but you guys don't come out as much as the nutcases do. +1

Tue, 07/31/2012 - 21:27 | 2667142 Cursive
Cursive's picture


You get the troll award for the night.  With a userid of "RobertMugabe?"  Oh, and nice farked avatar, BTW.  You like profligate spending and fraudulent money?  Please move to Zimbabwe and give us daily updates on that shining city on the hill.  I'll speak out against fraud and corruption until my last breath, so fuck off.  You don't realize that this deficit spending and easy money are what kills societies and enables warmongering?  Take your status-quo, corruption-loving righteous indignation somewhere else.

Tue, 07/31/2012 - 21:58 | 2667209 geewhiz
geewhiz's picture

A mass tragedy is unfolding globally and there is nothing romantic about it, especially if you watch your own children starve and in danger. People who possibly have a correct insight about what freedom is while watching sincere Keynesians being useful idiots to dark shepherds probably feel like Cassandra and get cynical about educating sheeple. It's easy to feel that way.

I think the best thing to do is to say as little as possible and do as much as possible to help yourself and those closest to you. A lot of people are going to get a very brutal awakening and many will die never understanding where it all came from. I think the most those with insight can do is to try not to be a victim and refrain from mocking the naive in thier misery, it will not endear them to you. In the end everyone will be a victim, some more brutally than others, and I don't think anyone should be too confident about how they will make out, it's all uncertainty now.

Hey Mugabe, you stop printing money yet? Some friends of mine in SA says the underground economy in Zimbabwe is going great using the rand as currency and Zimbabwe is one of thier best African markets.

Tue, 07/31/2012 - 20:52 | 2667057 Ricky Bobby
Ricky Bobby's picture

I would say that most ZH commenters are cheering for a return to the rule of law and an end to the relentless central planning and intervention.

Tue, 07/31/2012 - 20:56 | 2667068 RobertMugabe
RobertMugabe's picture

I would say you've had one too many and aren't seeing things clearly. While those are admirable aspirations i do not think that accurately reflects the majority of commenters on this site, unfortunately.

Tue, 07/31/2012 - 21:01 | 2667087 AT
AT's picture

I think there are plenty of folks out here who would rather NOT being paying this much attention to the markets, but are forced to do so because the world financial system represents an imminent threat to our well-being and our families' well being. We would rather save our money, do our jobs, and live our lives but are forced by the snivelling, lying politicians and central bankers to live in a state of limbo, devoting inordinate energies to building and maintaining hedge positions against the catastrophe we know is coming. I don't wish ill on anyone, but I believe it's coming and there's really no social or government force that can stop it at this point. I also believe each year of delay will worsen the final denoument. 

Therefore, I would rather get the pain over with sooner than later and move on with the rest of my life and my children's lives so that they don't also head into their young adulthood knowing the threat is still looming and being forced to delay the start of their careers, the formation of their businesses, etc. for years until the current system resets.

Tue, 07/31/2012 - 22:40 | 2667338 The Disappointed
The Disappointed's picture

+1 for using 'denoument'.
Did you know that the French don't have a word for that, either?

Tue, 07/31/2012 - 22:41 | 2667339 The Disappointed
The Disappointed's picture

dup, duh.

Tue, 07/31/2012 - 22:59 | 2667388 Vendetta
Vendetta's picture

bingo.  I think that pretty sums it up for most.

Tue, 07/31/2012 - 21:14 | 2667116 tu-ne-cede-malis
tu-ne-cede-malis's picture

The boom is the sickness, and the bust is the cure.  We are all ready for the aforementioned cure to hurry and get here so we can make our next moves.  I'm ready to actually make real plans in my life without some fucktard central banking keynesian scumbag screwing it up.  The bust, hopefully, will rid the world of keynesianism once and for all.

Tue, 07/31/2012 - 21:18 | 2667129 RobertMugabe
RobertMugabe's picture

I had no idea it was so easy! Things must be either black, or white. Keynes was evil, Rothbard was God. Valuable insights

Tue, 07/31/2012 - 21:32 | 2667158 WAMO556
WAMO556's picture


If you vote , promulgate, advocate, wish for something or someone that is the "lesser of two evils", guess what. YOU are still advocating for EVIL. Having the wisdom of Soloman and the patience of Job. Two highly sought after but never achieved virtues.

Tue, 07/31/2012 - 21:20 | 2667130 TahoeBilly2012
TahoeBilly2012's picture

Why Mugabe, why? Because it is all a fucking lie! People are sick of living the lies, deception and spin. Maybe not so much if you are well off and enjoying your life, or maybe like Grantham, you are well off and still seemingly unhappy.

You don't see to understand how many people online have come to view there Government as something other than the "force of good" they have been told. Case in point, a few years back the US still pushed the "human rights" issue on everyone around the world, sounded good too, I believed it! Now they don't even bother, they just spin the wars from "Al Qeada" to "WMD" to "humanitarian cause" like a big joke and people see this same jive in the financial system. People are telling themselves "maybe this is all not very beneficial for my future, my soul, my family" etc.

If you want defend what is worth "saving" in system and way of life, please do, and be specific!


Wed, 08/01/2012 - 02:08 | 2667783 madridisburning
madridisburning's picture


Tue, 07/31/2012 - 20:54 | 2667060 WAMO556
WAMO556's picture

My avatar says it all in regards to your BS. Did I junk you, NO. Junking or plussing you would actually mean that I give a shit about your stupid opinion. As a avid Daarwinian fan, it is not the strongest nor the most intelligent that survives. The ones that survive are those that are most able to ADAPT! If adapting means having: guns, gold, food, water and training, then it beats the BS name calling that you are doing. @robertmugabe,, if you think that everything is cool, take your blue pill and find the Website that mot conforms to your outlook, because this obviously is not your cup of tea. Methinks that you are a asshole too!

Tue, 07/31/2012 - 21:00 | 2667085 RobertMugabe
RobertMugabe's picture

 if you think that everything is cool, take your blue pill and find the Website that mot(sic) conforms to your outlook,

But dont you see, then i would be just like you. The difference of course is that you take the "red" pill and read websites that most conform to your outlook. the irony is killing me, but the fact that you fail to see it is saddening.

Tue, 07/31/2012 - 21:38 | 2667169 TahoeBilly2012
TahoeBilly2012's picture

"websites that conform to your outlook" ?? How about websites that tend to predict the FUTURE! How about goldbugs on (those kooks) who 10 years ago starting informing we were headed for a massive debt collapse. How about the majority of them said there would be a massive bailout, market rigging and the a final bigger collapse! How about the websites that said Obama was not a "kid off the street" but a setup operative, brought on to fool the anti war masses and and continue the Neocon plan in the Mid East, continue the deception, the lies. Yea, websites which fit our "world view" or websites who are making calls left and right about what is happening around us. Good luck with the New York Times or whatever feeds your views!

Wed, 08/01/2012 - 02:15 | 2667795 madridisburning
madridisburning's picture

You keep saying it right. But, we appear to be in the wrong church. This church of the "rooting for Armeggedon Church, beause we will be right on something for the first times in our lives." Even it it all results in the earth spinning off it axis and colliding with the sun, it is OK for these folks, because they will have been RIGHT!

Mind you, I tend to agree that things will not be pretty when "the time comes." But, hoping for anything other than a good, old fashion and HUGE market correction to bring the equity market reality is daffy, and thinking that no matter what happens gold is going to the moon is even daffier.

Do people really think we would be better off today if people stopped accepting dollars for payment? How about if we all just quit work and started farming in our backyards? Is the world really going to be better?

Yes, we will get a market correction. But, my goodness, the rest of this nonsense is just so stale by now. It makes one have to take s-shovel and dig down deep to find the precious nuggets that can still be found, occasionally, here at ZH.

But, the zealot ideology as sound economics does not fly.



Wed, 08/01/2012 - 02:47 | 2667824 RobertMugabe
RobertMugabe's picture

Be careful saying truth like that. You'll make a lot of enemies here. +1

Tue, 07/31/2012 - 21:00 | 2667062 Deathrips
Deathrips's picture

Guess what?

You dont know what im gonna be doing tomorrow play by play, but you know im gonna be watching out for the fucks flyin the insanity plane we are all sitting in. Its flying all over the damn I know where its going? NO. I just hope im alive to greet him on the way out of the cockpit.

Its kinda like that.

A little advice...dont really care what you think about it. Dont call everyone here a pussy. It makes you sound retarded. Actually, you sound like a butthurt little bitch. That IMHO goes for all they predicter screaming mother fucks on here. You just want somone to blame. Learn. Choose.

Inquiry is the cure.

Choices are the reward.



Tue, 07/31/2012 - 21:05 | 2667096 RobertMugabe
RobertMugabe's picture

A little advice...dont really care what you think about it. Dont call everyone here a pussy. It makes you sound retarded. Actually, you sound like a butthurt little bitch.

A little advice, dont say someone sounds like a butthurt little bitch. It makes you sound like a pre teen who has to say what he heard on comedy central because he lacks the intelligence to formulate original thought

Tue, 07/31/2012 - 22:32 | 2667314 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Man, you talk way too much.

Wed, 08/01/2012 - 00:40 | 2667655 RobertMugabe
RobertMugabe's picture

It's text, no talking involved you dense bafoon. Your a clown, clad in a burlap sack and jacking off wildly for all to see. And you've been dispatched

Tue, 07/31/2012 - 20:43 | 2667032 Central Bankster
Central Bankster's picture

An appropriate avatar you have.  Financial crises come and go, they do not necessarily lead to war but a financial crisis is coming regardless of what you hope for.  I simply intend to be on the profitable side of this crisis.  I will not be a helpless "hoper".

Tue, 07/31/2012 - 21:31 | 2667152 robertocarlos
robertocarlos's picture

After the US dollar fails, there will only be WWIII if the USA starts WWIII.

Tue, 07/31/2012 - 21:31 | 2667153 dirtbagger
dirtbagger's picture

Amen.  Those who have actually witnessesed the political and economic collapse of a country and the subsequent suffering,  understand it is not something any intelligent and compassionate human being would wish for.   

Wed, 08/01/2012 - 00:43 | 2667665 RobertMugabe
RobertMugabe's picture

Wear your red down arrows like a badge of honor. Those that junked you are degenerate hillbillys with missing teeth and shit for brains

Tue, 07/31/2012 - 20:21 | 2666980 Pay Day Today
Pay Day Today's picture

There will certainly be "rebuilding bonds" but no actual rebuilding.

Tue, 07/31/2012 - 21:21 | 2667135 WAMO556
WAMO556's picture

And how would you know? A lot of us on this website dont want the destruction of this society. We have invested too much into it to see that happen. But....we also see a lot useless BS, shenanigans, whatever you want to call it, that has invaded our culture, our society, our lives with no way of getting around it. For example:

Homosexuality - I DO NOT care what you do you in your bedroom, but yet this lifestyle is being promoted incessantly by a minority of militant activists who want to change the majorities way of life. How can a behavior be classified as a civil right, because if that is true, then most abhorrent behaviors can then be re-classified as civil rights. Think about it.

Multiculturalism - celebrate YOUR diversity in YOUR own way, again a small group of militant activists who want change the majorities way of life.

Capitalism - laws are enacted in order to protect large corporations AGAINST competition. The Federal Reserve Act got rid of competition amongst the bankers, they are a Banking Cartel.

Public Pensions - where is it in the constitution that says that the government is allowed to get into PENSION plans. I dont give a shit about some bought and paid for SCOTUS (those idiots WILL ALWAYS side with the government), I mean WHERE EXACTLY does it say that the government will be in the PENSION plan business.

There is a lot of built up bad blood amongst ourselves where only a true catastrophe can purge that bad blood.

Wed, 08/01/2012 - 02:14 | 2667788 Amagnonx
Amagnonx's picture

"A lot of us on this website don't want the destruction of this society."  - and there are a lot of people who do want the destruction of this society.


The difference perhaps between our points of view, is in the our view of the causes of the problems.  Those who look for a total collapse are often people like myself, who see the causes are totally fundamental - and they are not going to be changed without a total social collapse.


In my opinion, the reasons for the current situation is as follows;


1) The cultural paradigm that supports tyranny of law.

 a) That govt (political class) has a a legitimate right to monopolize law, to create law, to arbitrate it and enforce it.

 b) That govt (political class) has the legitimate right to levy taxes, and spend them without accountability, and with impunity.


2) The cultural paradigm that believes in something for nothing, or economic tyranny.

 a) That money may be lent at interest, the creditors protected - rather than suffer the consequences of risk.

 b) That credit may be created out of thin air, rather than being the result of saving.

 c) That money can legitimately be issued and controlled by a monopoly.


These two items in my view form the basis of the society that exists, and without a total upheaval there is little chance that these pillars of tyranny will be challenged.

Wed, 08/01/2012 - 02:52 | 2667830 RobertMugabe
RobertMugabe's picture

I junk your opinion, which in my opinion is quite gay.

Tue, 07/31/2012 - 19:57 | 2666909 erik
erik's picture

Does anyone recall the Aug 31 2010 end of day gigantic block trade which came the day before ISM?  I remember comments to the effect of "this is your tell that a huge rally is coming".  Turns out ISM was a huge beat and the Jackson Hole QE rally was on.

I wonder if today's block trade at the close is similar for an imminent down trend in the market.

Tue, 07/31/2012 - 20:40 | 2667027 francis_sawyer
francis_sawyer's picture

Aug 31, 2010 should be given credit (at least 'somewhat' in f_s logs)... to LENNON HENDRICKS...


I'd still earmark it as, basically, the day that the BUY SILVER movement got going... Whatever else transpires... I'm not going to let that go unsaid (notwithstanding Turdites)...

Tue, 07/31/2012 - 21:36 | 2667166 erik
erik's picture

In the archives, I see chatter from Sept 1st 2010 regarding 200K ES contracts which traded at the close on Aug 31, 2010.  Also chatter that 32K CAC 40 futures contracts were also traded.

Compare that to today's 60K ES contracts at the close and we're looking at less of an event, but still an important tell.

Aug 31st 2010 led to a massive rally.  July 29th 2011 led to a massive selloff.  July 31st 2012... ?

Tue, 07/31/2012 - 21:56 | 2667206 francis_sawyer
francis_sawyer's picture

Anybody's guess...

My guess is HEADFAKE... These are precisely the types of things (during light summer trading & pre-Jackson Hole), where insiders make their bank...

So my logic says to do the OPPOSITE of what it looks like on the surface... Seriously though ~ that's just my unsolicited 2 cents... I'm TRULY as sick as Grantham appears to be with all the 'Hilsenrath', 'Draghi', or whatever the flavor of the day rhetoric is...

So whatever it appears to look like on the surface... I'D BE FADING IT with both hands...

Tue, 07/31/2012 - 23:01 | 2667393 erik
erik's picture

It'd be interesting to see the intra-day chart from 08/31/10 to see if it spiked/dropped into close.  Today's massive block apparently was "hitting the bid" since we dropped into the close.

08/31/10:  huge block 200K ES at the close.  the day before a huge ISM beat.  56.3 vs 53.2 exp

07/29/11:  huge block (size?) at close drives stocks lower.  the day before a huge ISM miss.  50.9 vs 55.9 exp

02/29/12:  huge block (size?) at close drives stocks lower.  the day before a huge ISM miss.  52.4 vs 54.6 exp

07/31/12:  huge block 60K ES at close drives stocks lower.  the day before an ISM miss?

I would guess that the huge block today was a tell instead of a head fake.  If there is indeed a huge ISM miss tomorrow, then the Fed will have a very quick decision to make.

It appears that someone with lots of money is getting the ISM data before the rest of us.


Tue, 07/31/2012 - 20:01 | 2666920 GlomarHabu
GlomarHabu's picture



Does it really matter? We are so screwed ....

Tue, 07/31/2012 - 20:09 | 2666929 fonzannoon
fonzannoon's picture

Wait until Nov when the fiscal cliff is resolved. How is it resolved? Simple. Eliminate the pesky debt ceiling. Eliminate the automatic spending cuts. Eliminate the tax increases. Celebrate both sides for coming together and averting disaster. Just for shits and giggles Bernanke even mentions having to start raising rates (he never will) to try to calm down the explosion in growth that will now obviously be taking place with the fiscal issues squared away. Watch the ratings agencies upgrade us on the news. Larry Summer high fiving Krugman all over CNN.

Wed, 08/01/2012 - 08:44 | 2668152 GlomarHabu
GlomarHabu's picture




CNN?  ..... just give up TV  .... I've now gone seven months, all of 2012 w/ no ill effects ... I know, I'm a heretic and a Luddite now.

Tue, 07/31/2012 - 20:05 | 2666930 GeorgeHayduke
GeorgeHayduke's picture

I agree with getting on to the next thing, however, getting the current power brokers out of the picture is where the trouble lies. They will ensure a difficult time for everyone else in the process of losing their power. Unfortunately, their usual tactic of getting the sheep to fight each other over the scraps will likely work again and again until the sheep wake up. So, I see little change coming anytime soon unless something forces their hand.

Tue, 07/31/2012 - 20:05 | 2666931 bigwavedave
bigwavedave's picture

i need moar plastic to buy moar shiny stuff from the yellow peril. 

Tue, 07/31/2012 - 20:09 | 2666940 thad78
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The leaning Tower of Piza should have fallen, but with constant proping up, has stood for over 700 years.All things will fail in time, but noone knows the hour. Maybe Mr. Grantham should just live in the moment and advise his clients to do the same (sarc)

Tue, 07/31/2012 - 20:11 | 2666950 fonzannoon
fonzannoon's picture

Great analagy thad. You nailed it.

Tue, 07/31/2012 - 20:10 | 2666944 Hype Alert
Hype Alert's picture

What?  You're not having fun?

Tue, 07/31/2012 - 20:19 | 2666975 TahoeBilly2012
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The reality is things are happening. Regardless of financial and monetary hokus pokus the economies of Europe and the US are rapidly changing and there is no quick way back to properity, is there? You can mull over many other issues, but those facts are facts and "loaning" more money to Spain or California ann't going to change shit, so things are CHANGING and fast.

Tue, 07/31/2012 - 20:26 | 2666989 RobertMugabe
RobertMugabe's picture

No quick way back to properity? OH FUCK what are we to do?? 

 You can mull over many other issues, but those facts are facts and "loaning" more money to Spain or California ann't going to change shit, so things are CHANGING and fast.

One of the funnier comments on ZH today! Bravo!

Tue, 07/31/2012 - 20:47 | 2667041 TahoeBilly2012
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Let me clarify so you can UNDERSTAND. Things are not going to change in the way of deteriorating economy due to collapse of an artificial housing boom which brought false prosperity (see goods from China and Oil from Saudi), so when I say "nothing will change" I really mean things are changing. You are smart enough to get what I was saying, but if not, I can help you along.

Now maybe you can spell check me for fun!

Tue, 07/31/2012 - 20:29 | 2667004 Miles Kendig
Miles Kendig's picture

California would be far better off as its own nation.  The extra 30% the feds keep from raping the state would more than balance its books.

Hate to see what will happen when all that extra dope is removed from red state drip lines.

Tue, 07/31/2012 - 21:53 | 2667192 Lednbrass
Lednbrass's picture

I am going to try to be nice about this.

I fully agree that California should be on its own, and think that we would be a far happier bunch of people as at least 3 separate nations. However, your claim about the money is 100% incorrect. California is a net receiver state, as are 45 of 50 states in the US.

How much does California receive? See Table 13 of the Consolidated Federal Funds report, Table 13 first chart.  2010 is the last year I can find numbers for as this was discontinued by the adminstration.

We can see that California received 333,809,000,000

What did California pay?,,id=206488,00.html

Click on 2010, California paid 273,353,106,000 to the Federal government. In reality California is the #3 gross receiver of Federal funds in the nation after Virginia and Florida at 60,455,894,000, and California receives $1.22 for every $1.00 extracted by the Federal government

The biggest receiver is New Mexico at $3.67 to 1.

The only real donor states are New Jersey, they gave out $38 bill more than they received in 2010, Minnesota at $23.6 bill, and Delaware at 7 bill.

These figures are for gross sent/received (as are those of the deeply flawed Tax Foundation "study" of 2005 I assume you base your claim on) and while there are certain factors that affect these numbers (retirees, government employees, military, industry that sells to government etc.) your claim is just not factual at all. Californians are fond of saying that they give more than they receive, but it is not reality.

Tue, 07/31/2012 - 20:26 | 2666992 Miles Kendig
Miles Kendig's picture

Jeremy, enjoy these extra days with those you love and places you enjoy.  There will be time enough to focus on what's next when it arrives.

Tue, 07/31/2012 - 20:27 | 2666999 q99x2
q99x2's picture

The US military and local police forces have to get their riot gear in first -- before what happens next. Some of it is still on back order.

This show is being paid for out of the stolen wealth of the banksters (at this point) and won't continue much longer.

It is not a climate in which economies can grow. It is too dangerous to invest in and far too corrupt.

Tue, 07/31/2012 - 20:41 | 2667031 Jason T
Jason T's picture

Jeremy is on our wave length of thoughts for sure.  ..he could have added we're about to attach Iran any moment for the last 5 years.

like a slow motion train wreck


Tue, 07/31/2012 - 20:56 | 2667069 TahoeBilly2012
TahoeBilly2012's picture

There that too! But if one were to write script on the end of the world, it might have a really LONG dramatic final chapter...just sayin'.

Tue, 07/31/2012 - 20:54 | 2667061 Paul Atreides
Paul Atreides's picture

I must have posted "Groundhog Day Bitchez!" at least 6-7 times over the past few months...same shit over and over.

Tue, 07/31/2012 - 21:13 | 2667114 Stanley Lord
Stanley Lord's picture

Jeremy slipped a mooring a long time ago.

There is nothing here.

Tue, 07/31/2012 - 21:22 | 2667136 disabledvet
disabledvet's picture

it's horrific news no matter what happens. if the best one can say is "they made us wait" let that be a tribute to their abilities!

Tue, 07/31/2012 - 21:30 | 2667139 gookempucky
gookempucky's picture

The epiphany for many--is about to bitch slap them like lightening from Lo

Tue, 07/31/2012 - 22:29 | 2667301 sansnobel
sansnobel's picture

This shit is gonna be like Japan most likely.....maybe worse.  It will never end, it will just be financial sodomy until the dollar is worth nothing.  Very slowly over another generation....funny thing of how easy it is to subjegate masses and their "savings" when there are so many distractions in the world and so many possibilities for money to flow into and for people to chase in search of "yield".  I got to give the Kommrad Kommies at the FED and the US government a little credit;  their JEW smarts are good for something...even if it is deliberate deceit.  Too many brain dead masses that don't care what whats happening to them, long as the next meal ticket is always in hand, they really don't care.  They really do have the world by the balls.  To get people to willingly accept the neo-fuedalism model is quite genius.  Have you pay for the cost of your own slavery, pure fuckin genius!!!!! 

Tue, 07/31/2012 - 22:57 | 2667383 HardAssets
HardAssets's picture

Who wouldnt like another (relatively) peaceful day to spend with their loved ones ?

Who wouldnt want another day to perhaps help open the eyes of one more person ?

Who wouldn't want another day to prepare just a little bit more ?

No - - - I  don't want the 'world to get on with it'. I fear what that will mean for those I love, for my country, and for Humanity.

But it really doesn't matter what I want, or anyone else here - - - does it ?   It'll happen when it happens.

Until then, I'll try to take each day leading up to 'it' as a gift. (Which isnt easy . . . thinking about this often gives me a raging headache.)

Wed, 08/01/2012 - 01:23 | 2667733 jvetter713
jvetter713's picture

Gee...if Federal employees...all of them...had to pay for the deficits out of their salries would that not help?

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