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JP Morgan Finds Obama, And US Central Planning, Has Broken The Economic "Virtuous Cycle"

Tyler Durden's picture


In the last few months we have presented various analyses, both ours and those of Goldman and even Jon Hilsenrath, on why one of the core economic empirical relationships: Okun's law, is now broken. Subsequently we presented another parallel line of inquiry - namely that in order to preserve the illusion of a recovery, the Obama administration (with help from the Fed) has engaged in a quality-for-quantity job transfer, where America is creating increasingly more jobs of lower quality (the bulk of which are part-time), which in turn is leading to less proportional personal income tax revenues, and thus to a secular shift in an indicator which is even more important for US economic growth than simply the number of jobs "gained" each month - labor productivity. Today, JPM's Michael Feroli ties these two perspectives together in an analysis that has extremely damning implications for the US, and global, economic growth prospects. In a nutshell, Feroli finds that "Productivity, which used to be procyclical, has now turned countercyclical" which in turn means that "if labor is no longer a quasi-fixed factor of production this may eliminate one type of non-convexity in production, thereby reducing the likelihood that the economy has multiple equilibria and is subject to self-fulfilling prophecies" or said somewhat simpler: "the conditions for self-fulfilling prophesies in the macroeconomy may no longer exist." Still confused: central planning, and the Obama vote grab has killed the "virtuous cycle"... Which in turn means that everything America is trying to accomplish is now a lost cause, as every incremental dollar spent, whether by fiscal and monetary policy, is pursuing an outcome that is now theoretically and practically impossible to achieve!

Congratulations central planning - you have just blown your own head off in the latest epic Catch 22. Because this time is never different. 

Feroli lays out the Okun problem quite simply:

Not too long ago Okun’s Law was somewhat obscure, familiar mostly only to economists. Recently, however, given the big move down in the unemployment rate, this empirical relationship has earned wider interest among financial and public policy audiences. The decline in the unemployment rate experienced over the past year is in apparent violation of Okun’s Law, which links changes in the unemployment rate to changes in GDP. What is curious is that two years ago Okun’s Law presented a similar puzzle but with the opposite sign: the rise in the unemployment rate experienced in 2008 and 2009 was in excess of what would have been expected by Okun’s Law given the GDP growth shortfall.


Okun’s Law holds that to reduce the unemployment rate down by one percentage point over the course of a year then GDP growth should be about 2%-pts faster than its long-run trend growth. With most estimates of trend growth in the neighborhood of 2.5%, this implies that it takes growth of about 4.5% for a year to lower the unemployment rate by one percentage point. In the year ending in December, the unemployment rate fell by almost a percentage point, a period in which growth was only 1.6%— not only not significantly above trend, but not above trend at all. To understand this violation of Okun’s Law, we return to Okun’s original analysis of the issue.


One of the bedrock relations of macroeconomics, even more fundamental than Okun’s Law, is that aggregate GDP (which we label Y) can be represented as function of the amount of capital (K) and labor (L) used to produce output, along with the overall level of technical progress (A) made in using capital and labor. More specifically, the relation Y=A*K1/3*L2/3 seems to describe US production fairly well. This means that a 1% increase in labor input will raise GDP by 2/3%-pt. If the size of the labor force is constant then a 1%-pt drop in the unemployment rate should increase labor input used in aggregate production by 1/(1-u)%, where u is the unemployment rate. This implies that holding all else equal, a 1%-pt drop in the unemployment rate should increase GDP by about 1/(1-.083)*(2/3)=0.7%, a number well below the 2% boost implied by Okun’s Law. The apparent disparity is resolved by the fact that all else is usually not equal: declines in the unemployment rate tend to be correlated with (1) increases in the average workweek, (2) increases in labor force participation rates, and (3) increases in average labor productivity.

Feroli on the labor force participation rate wildcard - nothing but an optical scam to fool the general peasantry into believing that the unemployment rate is dropping, when in reality we are having a historical economic transformation of unprecedented proportions. And call it lost productivity, or a quality outflow of jobs, end result is the same:

The breakdown of correlation (2) has received the most attention recently: instead of increasing, the labor force participation rate has declined even as the unemployment rate has declined. However, Okun himself realized that the correlation of labor usage and productivity was historically the most important reason that the Okun coefficient was so large. The fact that this correlation has gone the “wrong” way over the past few years can explain both why  unemployment increased more than Okun’s Law would have predicted in 2008-2009 and why unemployment has come down so much recently. In fact, if the correlation between productivity growth and changes in the unemployment rate that prevailed between 1947 and 1984 held last year, then the decline in unemployment we have witnessed would have been accompanied by GDP growth of around 4.1%, and there would be little left to explain.


Output—GDP—equals productivity, or output per hour, times hours worked. As we noted above, growth in productivity, or correlation (3) listed above, has been weaker than what would have been expected given the decline in unemployment. However, the growth in hours worked has been only a little weaker than what would be expected. Although the labor force participation rate, correlation (2), is weaker than what one would have expected given the decline in unemployment, the average workweek, correlation (1), is stronger than what would have been expected. On net, hours worked have not behaved too abnormally given the decline in unemployment—productivity has.

A historic secular shift: productivity - a core component of GDP, is no longer procyclical.

For most of the postwar period productivity was significantly accelerating in booms and slowing in downturns. The most common explanation for this relates to labor market frictions that make labor a quasi-fixed factor of production. For example, if union contracts stipulate a certain level of employment, then in a downturn less output is spread over the same labor “overhead,” reducing productivity; the opposite happens in a boom.


A variety of micro- and macroeconomic evidence suggests that labor market frictions have declined in recent decades, which can be seen less formally in the rise of temp help employment, the decline of unionization, the rise of internet job search, etc. These factors have made labor more of a variable factor of production, rather than a quas-fixed factor of production that is adjusted only occasionally. This trend has likely led to the end of procyclical productivity. Moreover, this trend is not going away, and so we should not expect the old macroeconomic regularities to reassert themselves.

The conclusion is staggering - everything we know about the economic virtuous cycle is now irrelevant!

The new pattern of productivity growth—no longer cyclical with respect to output and countercyclical with respect to employment—has several important implications. For one, we may continue to see the unemployment rate drop more than Okun’s Law implies. Another implication is that the labor share is no longer countercyclical. This also means that profits will be less correlated with improvements in the labor market.


A final, somewhat technical, implication is that the conditions for self-fulfilling prophesies in the macroeconomy may no longer exist. The idea that there could exist virtuous/vicious circles between real economic outcomes and confidence (or asset prices, effectively the same thing) was first formally advanced by David Cass and Carl Shell. They referred to these virtuous/vicious circles as “sunspot equilibria;” George Soros dubbed the property “reflexivity.” Subsequent applied macroeconomists appealed to the procyclicality of productivity as evidence of the type of increasing returns to production sufficient to generate confidence feedback loops. If labor is no longer a quasi-fixed factor of production this may eliminate one type of non-convexity in production, thereby reducing the likelihood that the economy has multiple equilibria and is subject to self-fulfilling prophecies. While it is hard to say much definitively, it is interesting to observe that over the last two years the economy has been subject to large swings in investor sentiment and asset prices, and yet actual growth outcomes have been remarkably stable.

And there are those who wonder why we detest "central planned" attempts to attain a fake equilibrium more than anything. Luckily, now that the core driver of economic growth has failed just so a centrally planned administration can get 4 more years of "hope and change" it won't be much longer until the wheels finally and terminaly fall off the centrally panned bus tour.


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Sat, 03/24/2012 - 13:12 | 2286734 YesWeKahn
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The key problem is that congress people keep saying that Bernank is doing a great job without understanding what it was really up to. Then Bernank can't see the forest from his little tree.

Sat, 03/24/2012 - 13:22 | 2286750 AldousHuxley
AldousHuxley's picture

Congress know what they are doing....asking Bernanke to ease up on the credit so that they get to keep their jobs and power although they've made horrible decisions for the nation.


Bernanke also is answering banksters calls to legitimize toxic assets off of bank's balance sheets to keep the game going for them.

Sat, 03/24/2012 - 13:30 | 2286764 Tao 4 the Show
Tao 4 the Show's picture

Yes, in the short term they know what they are doing. On longer scale, i am not sure anyone knows what they are doing. The tricky part is that this "longer scale" is getting shorter and shorter, with huge uncertainties now in the months range. This latest move by the U.S. govt to tell all of the world to stop trading with Iran or else face having their Swift access cut off is mind blowing. Will China and Russia (and India) just buckle? Or is this a major turning point in world affairs? I know it seems we have been on high alert/crisis mode for years now, but the next 6-9 months look like a critical moment in history. Someone is going to have to yield, and it's hard to say how gracefully or ungracefully that will happen.

Sat, 03/24/2012 - 13:36 | 2286770 palmereldritch
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  It takes a BHOtemkin Pillage

Sat, 03/24/2012 - 14:10 | 2286826 LowProfile
LowProfile's picture

The key problem is The Bernank created inflation via ASSET PRICES as opposed to WAGES.

What a fuckin' dolt.

Sat, 03/24/2012 - 14:19 | 2286840 qqqqtrader
qqqqtrader's picture

If house prices are going up (not real sure about that) and wages are going down, who's left to buy? ...chart

Sat, 03/24/2012 - 15:17 | 2286911 Divided States ...
Divided States of America's picture

Not a big surprise here...with the quality of the leadership that is running this country, its no surprise the state of degradation in the society is at an all time high. Now we have to choose between another term with Bammy or Mittens...looks like we are definitely keeping this trend going for at least another 4 years.

Sat, 03/24/2012 - 16:34 | 2287024 Manthong
Manthong's picture

They’ll just keep drinking until they sober up..

it’s just a short drive home and they know the way.

Sat, 03/24/2012 - 19:05 | 2287335 Henry Chinaski
Henry Chinaski's picture

and they are too damn drunk to walk home now.

Sat, 03/24/2012 - 23:47 | 2287797 boogerbently
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Until all homes are either being paid for or foreclosed on, we have NO idea where the banks stand.

Financials are the only asset class, in my TDAmeritrade account, that when I try to check on "Financial Strength", it says "Data not available...."

WHEN the banks are allowed to foreclose on, and resell that inventory, housing prices will drop even further.

Great for would-be homeOWNERS, bad for "investors", as it should be.

Sun, 03/25/2012 - 14:40 | 2288734 AldousHuxley
AldousHuxley's picture

facebook early employees after IPO .


all you need is one dumbass to over pay for shitty old house in Palo Alto to raise prices of all homes in the neighborhood.


also most boomers seem to have multiple homes from all the money they got from selling out their kids' futures to india and china.

Sat, 03/24/2012 - 14:02 | 2286807 Quinvarius
Quinvarius's picture

Those SWIFT threats cannot be retracted and are devistating to the use of the Dollar in global settlement.  It is like threatening to nuke someone.  Once you say it, everyone knows you are mentally unstable, and they will forever guard against you.  It will be seen as the bullet in the back of the neck to the dollar in a couple years.  No one can any longer afford to operate in the dollar based SWIFT system if the US is threatening to kick people out of it merely for buying things they need.

Only an unprepared moron with no clue about banking or world affairs, like Hilary Clinton, could have come up with a threat like kicking people out of SWIFT to use against our allies.  It is absolutely the same as threatening to drop nukes.  We are going to feel the wrath of the world over this.

It was stupid.  It was George Bush stupid. 

Sat, 03/24/2012 - 14:40 | 2286868 Tao 4 the Show
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Good points. This seems like an all-or-nothing play, otherwise spelled desperation. If this fails, the U.S. loses position/credibility in a big way. And even if everyone buckles, they will immediately accelerate their exit plans to remove this vulnerability. The U.S. loses in either case.

The only win is if they gain total dominance/control by having Iran and a large percentage of energy resources in hand far into the future. Is this unbelievable hubris at work or a real sense of iron fist? Seems like a major turning point.

Sun, 03/25/2012 - 09:02 | 2288161 GetZeeGold
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It was stupid. It was George Bush stupid.


Except George Bush didn't do it.......what does that say about the people that actually did.


Worse than is that even possible?



Sun, 03/25/2012 - 09:19 | 2288173 Calmyourself
Calmyourself's picture

Shh, don't interrupt the meme.. You cannot have Clinton as stupid, banging 19 year olds in the oval office and then lying about it under oath and being debarred is smart..  Obama stupid, please, he is African American did you realize that, he cannot be stupid. Billary got rolled by the smartest African American in the world so she cannot be stupid..  It simply must be GW, get with the program, watch some CNN in no time at all you'll feel right as rain..

Sun, 03/25/2012 - 15:02 | 2288778 AldousHuxley
AldousHuxley's picture

if Bush is stupid, then what about 50% of Americans who voted for him?


and the idiots wanted Sarah Palin as the leader?


redneck: I don't care for government, they don't show me anything

journalist: you get food stamps!

redneck: yeah, I deserve food stamps. I have no unemployment.

journalist: voting republican hasn't worked for you

redneck: but it could

Sun, 03/25/2012 - 15:30 | 2288821 AldousHuxley
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on the other hand you have welfare queens who have no shame anymore getting welfare


US government is only working for the very rich or the very poor. blue collar workers and professionals are the ones getting screwed with high income taxes (vs. capital gains) while not getting much from the government.

Sun, 03/25/2012 - 19:33 | 2289327 TrulyBelieving
TrulyBelieving's picture

One of your few posts that make sense AH. The rich running the govt and the well connected are rich because they are able to manipulate the laws, take money for favors, or any other illegal act they can find to steal from us. The poor get their crumbs for their votes and support. Blue collars and professionals are left holding the debt via taxes. And most of these are respectable people who don't want anything from the govt except to be left alone. 

Sat, 06/02/2012 - 17:57 | 2487840 Greenie
Greenie's picture

"You cannot have Clinton as stupid, banging 19 year olds in the oval office and then lying about it under oath and being debarred is smart.."

At least Barry and Michelle had the foresight to have their law licenses "voluntarily retired", so as to forgo the unpleasantry of being disbarred like Clinton.





Sat, 03/24/2012 - 15:47 | 2286954 Gully Foyle
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Or there is another vector being planned.

You can't have a one world government unless everyone sits at roughly the same table. Read enough and you discover how standards of living are dropping in the developed world and rising in the undeveloped. How the Welfare state is being merged with the Capitalist state, it is most obvious where state run health care is now under threat from personal insurance.

Eventually the US, and maybe Europe, will be the hammer. Africa and the third world will be the rescources. China and India will be the manufacturing hub.

Nothing is stupid if it moves the long term plan along.

Sat, 03/24/2012 - 16:07 | 2286987 ISEEIT
ISEEIT's picture

Who is to be the next world bank prez and what are his qualifications?

Sun, 03/25/2012 - 00:09 | 2287830 dark pools of soros
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i hear he can rap and sing some flashy notes

Sun, 03/25/2012 - 09:12 | 2288169 GetZeeGold
GetZeeGold's picture



All that and he's a buddy of Soros,...........uber qualified.


Sat, 03/24/2012 - 20:34 | 2287507 hangman
hangman's picture

certainly, US and 'western' world face unprecedented challenges, the 'rest' is still too far behind to fill the void in any meaningful manner, fast.  we still have quite a bit of savings that our ancestors build-up, putting a nice distance between us and the rest, that we are depleting, fast.  Thus, if we don't get our shit together before we run out of good grace our hard working grandparents build-up for us, we could become the shortest reigned super-power, ever.

We need to stop infighting, blaming each other, parties, etc., etc. Instead, we need to find a common ground, solution and only through hard work we can overcome this mess, doesn't matter who made this mess, we are certain it was Americans, etc., fast, before it's too late.

In short, infighting and blaming games are the surest sign of much worst things to come...



Sat, 03/24/2012 - 16:04 | 2286982 ISEEIT
ISEEIT's picture


Stupid as in those doing as instructed? Yes. Stupid but also as told. I am convinced that the long game is to collapse the USD. What is happening is actually rather brilliant, evil for certain, but not stupid.

Sun, 03/25/2012 - 09:27 | 2288176 nickt1y
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Or it was brilliant if you are presuming a Cloward Piven approach. Break the dollar, break the country, present a despot to the sheeple. Weimar to the 3 rd Reich for example.

Sat, 03/24/2012 - 13:38 | 2286772 Rubicon
Rubicon's picture

What does "off of" mean?

Sat, 03/24/2012 - 14:29 | 2286853 SilverDoctors
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"The conclusion is staggering - everything we know about the economic virtuous cycle is now irrelevant!"

Apparently everything we know about precious metals is now irrelevant too as a TUNGSTEN FILLED 1 kilo gold bar has been discovered in the UK. 
Vindication for Rob Kirby?

Tungsten Filled 1 kilo Gold Bar Discovered in UK
Sat, 03/24/2012 - 14:56 | 2286885 t_kAyk
t_kAyk's picture




Sat, 03/24/2012 - 15:32 | 2286931 Chaffinch
Chaffinch's picture

Wow - thanks for the link Doc! Amazing to see photos of the drilled-out bar with its tungsten inserts! I had thought the constant references on ZH to tungsten were a bit of a joke until recently, when I checked out tungsten on wikipedia and found how just how heavy it is. Is the only way to be sure to cut the bar in half? I'm sticking with coins I can recognised and test by weighing myself - and small ones at that - no one kilo gold coins for me ; )

Sat, 03/24/2012 - 15:41 | 2286946 Gully Foyle
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Nov 12, 2009

By: Rob_Kirby

Here’s what I now understand really happened:

The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes]. 

This was apparently all highly orchestrated by an extremely well financed criminal operation.

Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.

And here’s what the Chinese allegedly uncovered:

Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes].  Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day.  I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.

The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.

Apparently, the global market is literally “stuffed full of 400 oz salted bars”. 

Makes one wonder if the Indians were smart enough to assay their 200 tonne haul from the IMF?

Sat, 03/24/2012 - 16:10 | 2286991 Chaffinch
Chaffinch's picture

Thanks Gully - I followed the Kirby link from the SilverDoctors site and read about the 400 ounce bars - amazing stuff!

If it is true that the Chinese were the target of the original scam, would it not leave them wanting revenge? If the CBs are really playing these kinds of games with each other / the world gold markets it adds quite a twist to the endgame - what the he'll is going to happen? Gold shoots up to previously undreamed of highs - at which point everyone with anything larger than a ten ounce bar starts cutting it open to find out whether they own gold or tungsten! And the winner is - sorry - not you Mr Chavez - that's mainly tungsten - sorry Germany - that stuff you took from Greece was tungsten too... Well done Ireland! You've not got much of it but it is real gold...! This is madness!

Sat, 03/24/2012 - 16:02 | 2286981 rabbitusvomitus
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Sat, 03/24/2012 - 13:54 | 2286795 hedgehog9999
hedgehog9999's picture


Sat, 03/24/2012 - 14:47 | 2286877 LongSoupLine
LongSoupLine's picture



Well, all one has to do is look at the "national outrage" for one kid being shot by one cop in a completely isolated incident.  Protests, hoodie rallies, actors, sports icons...the're all in on the fever of it.  Yet, the Fed, Congress, TBTF's and a multitude of other entities "kill" the American public daily.

Are the American people idiots and ignorant lemmings on average?...yep.

Sat, 03/24/2012 - 15:17 | 2286913's picture

If you're talking about Trayvon Martin he was not shot by a cop.

Sat, 03/24/2012 - 15:58 | 2286973 t_kAyk
t_kAyk's picture

correct, he was shot by an individual on neighborhood watch.  I believe LongSoupLine was pointing out that we only see solidarity among the masses when it comes to isolated incidents.  when crime is conducted on a grand scale, some people can't see it for it's true nature while others succumb to their conditioned response and go back to playing angry birds. 

you can't see the forrest from the trees, or:

"If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”  ~ Joseph Goebbels

Sat, 03/24/2012 - 16:12 | 2286992's picture

What makes you say that the murder of Trayvon Martin is an isolated incident? It seems that lots of young blacks are victimized for purely racial reasons. (I'll take the obligatory moment to explain to the idiots that I realize that some blacks attack whites over race as well.)  But the beatings and shootings of young black men for no apparent reason other than that the victims were acting suspiciously Negro are not particularly isolated events.

It is a shame that publicity hounds are polarizing this case.

Sat, 03/24/2012 - 16:23 | 2287011 t_kAyk
t_kAyk's picture

You are correct, sir.  It is not my intention to focus on the race of the individual (although there are many who do, and will continue to do so), but more at the size of the crime.  People, no matter what color/race/creed, etc., are gunned down everyday and there is outrage.  Banks and government rape the masses and no one so much as blinks. 

Sat, 03/24/2012 - 16:35 | 2287023's picture

I talk with folks about the crimes of government and its cronies almost everyday. Most folks agree with me whole-heartedly. Some are even more visibly upset than I am.

I was at a meeting dealing with our county's recent property reassessment which increased assessments for poor neighborhoods and lowered them in rich neighborhoods. One eighty year old woman told me that she thought everyone should get a gun and go to the courthouse. An eighty year old man was calling for "revolution."

Sat, 03/24/2012 - 17:06 | 2287066 AssFire
AssFire's picture

Oh crap, Trayvon was under school suspension? the photo of him was when he was 13? .. Now unfortunately another witnesses supporting Zimmerman (who unfortunately is not white)...This did not exactly fit the JJ, Sharpton victim boilerplate..

So, a Hispanic man chases a black youth. The Hispanic thinks the kid is a thug and the Black youth thinks the Hispanic man is a gang banger and he needs to defend himself. I think they both profiled each other and the result was tragic. The one difference was that one guy had a gun.


Here is a current photo from Trayvon's Facebook...I must agree with the President- If he had a son, this IS what he would look like:

and lets not for get the photo with his gang's name emblazoned on it:

At least our President did not act stupidly by stirring up racial hatred  before learning all the facts as in the Cambridge debacle. Now a beer summit must be held for him to recapture the latino vote. Scientists will support Holder's contention that it was "Zimmerman's white side" that killed Trayvon.

Despicable race baiters never cared about the facts and now that the media doesn't either we are headed straight to shit as a nation.


Sat, 03/24/2012 - 17:11 | 2287086's picture

Zimmerman followed Martin simply because he thought he looked "suspicious." No mention has ever been made about any alleged criminal activity beyond the non-criminal act of walking while black.

Zimmerman profiled Martin, Martin simply defended himself with his fists when a stranger stalked him first by vehicle and then on foot.

Sat, 03/24/2012 - 17:45 | 2287161 AssFire
AssFire's picture

You understand people are killed by fists?

You really want to dispute that Zimmerman, by eyewitness accounts and evidence was on his back being beaten?

Why the guilt?  You really seem to think the white race must pay for this injustice they had nothing to do with?

Liberal apologists are destroying the country with their beliefs and they don't have any guilt for that.

Sat, 03/24/2012 - 17:58 | 2287176's picture

Are you saying that after Zimmerman pursued him by car and on foot that Martin had no right to defend himself?

Are you suggesting that if I stalked a member of your family and they fought back that I would have your permission to shoot them?

Zimmerman never indicated that Martin did anything other than to look "suspicious." Zimmerman then pursued Martin. Zimmerman was the aggressor.

Standing up for murder victims is a function of the rule of law. You must be a liberal if you fail to understand that simple fact.

I have no guilt so you can forget the pop psychology (that's another one of your liberal traits). I do have black family members. Don't even think about living out your insane revenge fantasies with one of them. This white boy knows how to do self defense the right way.

Sat, 03/24/2012 - 20:08 | 2287448 t_kAyk
t_kAyk's picture

I would love to see the link for the accounts you have of Zimmerman being beaten. 

Here's the audio of him stalking the young man:

Here's the audio of Martin being murdered:

I am sure you can locate all of this on MSM feeds and blogs. 

I know there are two sides to every story, but the way things are trending in this country, especially with the extreme police militarization (even though he wasn't a cop, but rather some wannabe jackboot), i'm gonna have to side with the departed. 

Sun, 03/25/2012 - 02:17 | 2287962 Mary Wilbur
Mary Wilbur's picture

Critical race theory

Sun, 03/25/2012 - 13:05 | 2288573's picture

The dead boy is a statistic and so Critical Race Theory which is based purely on anecdotal evidence and eschews hard data does not apply.

Sun, 03/25/2012 - 09:24 | 2288175 Calmyourself
Calmyourself's picture

You "deserve it white boy", had to find it in the Daily Mail as it got virtually no coverage in the US.

Sat, 03/24/2012 - 20:52 | 2287546 LongSoupLine
LongSoupLine's picture



 I believe LongSoupLine was pointing out that we only see solidarity among the masses when it comes to isolated incidents.  when crime is conducted on a grand scale, some people can't see it for it's true nature while others succumb to their conditioned response and go back to playing angry birds. -t_kAyk


BINGO!  I completely understand the issue of "profiling" and hate crimes.  All I was trying to point out was, apples to apples, when you look at the scope of damage to our way of life, Bernanke, TBTF's, CONgress, etc have it won hands down...where's the outrage other than a fading OWS?  It's all about the intellectual average of America...and, in my opinion, it's sucking wind when you view the MSM coverage of this shooting.

Sat, 03/24/2012 - 14:18 | 2286834 vast-dom
vast-dom's picture

I really can't wait for the wheels to fly off this motherfucker -- it is simply impossible to not just invest but even sanely track these markets given the actual schizoid policies and HFT like bullshit out there. What is the point of value and growth when fundamentals are now irrelevant and there is only a synthetic rigged upward market trajectory on nothing, not even hope and change, just plain utter greed-fantasy and alter-world crooked accounting. This shit will go on and on because the mentally ill are in charge and we all know that insane people can rationalize anything, especially if it's about their very own needs.... Sooner these markets collapse and the people running them are admitted into the nuthouse, the better.

The only growth that makes sense is in the guns and ammo charts as shown here yesterday -- that makes a lot more sense than, say, Apple....

And it's ironic that the culpable are now writing articles about how this system is untenable; sounds like some venal reverse-psycho ploy to me....

Sat, 03/24/2012 - 20:54 | 2287550 UP Forester
UP Forester's picture

And time is like a piece of wax, falling on a termite:  He's choking on a splinter.

Sat, 03/24/2012 - 21:11 | 2287590 vast-dom
vast-dom's picture

Oooooopen the door!

Sat, 03/24/2012 - 22:35 | 2287714 UP Forester
UP Forester's picture

You gettin' crazy with the Cheez-WizTM?

Sun, 03/25/2012 - 00:51 | 2287885 vast-dom
vast-dom's picture

i'm crazier than da wiz son, i am the beast i worship.

Sun, 03/25/2012 - 10:12 | 2288230 smb12321
smb12321's picture

BUT  but but ...inventments have never been ONLY about currently calcuable value but instead, value in the long run.  (At least that's what investing used to be about.) It's why the US and other Western countries are in such a pickle - it's not our current value that is in question, but the future one.  

Markets have always partly on perception.  Many who decried the market runup under Bush as phony eagerly accepted the Clinton doc com bubble  when PE's were in the 500-1000 range.  Percpetion is everything. The sad thing is, there ARE some excellect investments but the black hole of sovereign debt is sure to give them a sucker punch.   


Sat, 03/24/2012 - 15:15 | 2286909 Chaffinch
Chaffinch's picture

So it's Obama who is to blame for breaking the virtuous cycle? Everything was going fine until 2009? And we know this to be so because a guy from JPM says so? Yeh, right...

Sat, 03/24/2012 - 15:53 | 2286968 Gully Foyle
Gully Foyle's picture


"The key problem is"

We are not privy to the playbook.

I imagine if the majority of Americans understood the direction we are  moving in they would accept it without issue. Even the coming collapse and realignment wouldn't bother the masses.

What troubles me is the amount of people, especially here, who still assume that there is any freedom. Why is it so hard to grasp that the plans made so long ago are being moved along at exactly the pace planned. Maybe there is a glitch here and there, sometimes slowing sometimes speeding up, taking advantage of oppurtunities presented when they arise.

In the end it all runs to the same place, a single world government with a single bank.


Sat, 03/24/2012 - 16:18 | 2287007 ToNYC
ToNYC's picture

Machiavelli noted long ago that since the survival of the Prince is the  issue(on Nov 6, 2012), nothing else matters. No power is a morte!

Sat, 03/24/2012 - 16:45 | 2287033 nasdaq99
nasdaq99's picture

Is Zeorhedge gonna audit the P&L on the $75Billion that the Fed claims it "earned" and handed over to the Treasury last week?

Sat, 03/24/2012 - 13:15 | 2286736 Olympia
Olympia's picture

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

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

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

Authored by Panagiotis TRAIANOU 

Sat, 03/24/2012 - 13:17 | 2286742 no life
no life's picture

I've been saying this for years.  Years!

Sat, 03/24/2012 - 13:19 | 2286747 Zero Debt
Zero Debt's picture

All backed by 1 oz of gold

Sun, 03/25/2012 - 00:48 | 2287882 StychoKiller
StychoKiller's picture

And craptons of Tungsten!

Sat, 03/24/2012 - 13:23 | 2286753 tickhound
tickhound's picture

These distortions in the ancient voodoos will continue as the drive for profits forces labor into automation.

Labor as a function in these equations is becoming increasingly worthless. 

Sat, 03/24/2012 - 13:23 | 2286754 Zola
Zola's picture

More specifically, the relation Y=A*K1/3*L2/3 seems to describe US production fairly well.

Where does this come from ??

Sat, 03/24/2012 - 13:29 | 2286761 alexwest
alexwest's picture

it came from heads of Harvard/Prinston/Yale guys..

they missed NASDAQ BUBBLE, biggest housing bubble, so by now they would have been unemployed and/or in 'taking in ass' prisons if US fed gov would not have printed trilions and trilions $$ and bailed them out...


Sat, 03/24/2012 - 13:23 | 2286755 alexwest
alexwest's picture

you know , I almost puked reading this nonsense..WHY ?????????????????

One of the bedrock relations of macroeconomics, even more fundamental than Okun’s Law, is that aggregate GDP (which we label Y) can be represented as function of the amount of capital (K) and labor (L) used to produce output, along with the overall level of technical progress (A) made in using capital and labor. More specifically, the relation Y=A*K1/3*L2/3 seems to describe US production fairly well. This means that a 1% increase in labor input will raise GDP by 2/3%-pt. If the size of the labor force is constant then a 1%-pt drop in the unemployment rate should increase labor input used in aggregate production by 1/(1-u)%, where u is the unemployment rate. This implies that holding all else equal, a 1%-pt drop in the unemployment rate should increase GDP by about 1/(1-.083)*(2/3)=0.7%, a number well below the 2% boost implied by Okun’s Law. The apparent disparity is resolved by the fact that all else is usually not equal: declines in the unemployment rate tend to be correlated with (1) increases in the average workweek, (2) increases in labor force participation rates, and (3) increases in average labor productivity.

bunch of fancy words, formulas /etc.. and IN WHOLE BULSHIT POST THERE IS NO a FUCKING SINGLE WORD 'DEBT' and 'GOVERMENT'.. true.. try context search

so it didnt occur to author it DOES MATTER.. it seems its ok to print 10% of GDP for 5 years in row...

they live in fantasy land of formulas/ fancy okuns laws/etc .. they dont live in real world..


Sat, 03/24/2012 - 16:27 | 2287019 JW n FL
JW n FL's picture



who gave this mexican a scientific calculator?

someone call INS!

sorry! I couldn’t help it!


but seriously.. you are trying to use logic? in a world (American numbers) that is make believe.

there is NO REAL ACCURACY! in the numbers provided by ANY! Government Institution.

See this -->

so any assumption that you would like to spring board off of existing ".gov" information for.. is as flawed, if not more so.. for knowingly plugging in tainted figures.

Understand that Wall Street sees MORE! money from the Government than the Military! 3 - 4 times more!

where does it come from?

how can that be?

all you have to do is look at how much the FED has Printed in the Form of Loans on the "New Normal Mark to Market" Collateral! I can show you $16 Triillion(ish) Line Item from the Fed for 2 years(ish).

The system is a LIE! a HUGE Lie and it has gotten worse and worse and instead of trying to fix the system and inject some reality coupled with common sense.. the idiots have injected MORE BULLSHIT! into the System!

Now they are worried what will happen when this house of cards falls over.

Hence the Department of Homeland Security has been beefed up with steroids!

All the better to be able to beat the starving hoards into submission with!


It is OVER! Everyone is sitting around waiting for the correction! So that the New, New, New Normal of QE can be twisted, spun and or injected into the LIE of a System that the Greedy Idiots have Fucked Up for EVERYONE!


The World is going backwards..

Look at China’s numbers..

Look at Europe’s numbers..

Look at our numbers..


It is over! Everything but the Fat Lady Singing!

I understand this is so very negative.. and that it doesn’t make anyone feel good!

You can always plug into some Kramer and ignore the FACTS! All around You!


Sat, 03/24/2012 - 13:24 | 2286756 vegas
vegas's picture

And just exactly what did you expect when this dipshit was elected? Growth & prosperity? His goal is to transform the US into a socialist state, not make your life better. So easily predictable except to the Hopey Changey crowd that bought all the Marxist bullshit.

Sat, 03/24/2012 - 14:04 | 2286806 spooz
spooz's picture

substitute "fascist" for "marxist" and get a clue that either way you vote will result in the same outcomes.  or do you have that hopey changey thing goin' for the republicans? oh, yeah, and check out how those teapartiers voted on the extension of the patriot act. lolz

Sat, 03/24/2012 - 14:10 | 2286825 Crab Cake
Crab Cake's picture

Hey dipshit, the Repuglicans are no better than the Democraps; different faces of the same coin firmly in th banksters pocket.

How are people still this stupid?

Sat, 03/24/2012 - 13:26 | 2286758 ffart
ffart's picture

More specifically, the relation Y=A*K1/3*L2/3seems to describe US production fairly well. 

Is there still any wonder they call it the dismal science? Hey, if we put a bunch of unrelated terms together they sort of correlate to this graph. Then we can use it as an excuse to create more money out of thin air and loan it to ourselves. Let's go celebrate how brilliant we are with a double-sized portion of hookers and blow.

I bet Ben Ivanovich Bukharin Bernanke sits in his office trying to come up with new functions like this all the time.


Sat, 03/24/2012 - 13:33 | 2286767 t_kAyk
t_kAyk's picture

He knows but one function:  Ctrl+P

Sun, 03/25/2012 - 02:04 | 2287954 Mary Wilbur
Mary Wilbur's picture

Why Bukharin?

Sat, 03/24/2012 - 13:30 | 2286762 pleseus
pleseus's picture

This highbrow, pipe smokin', bow tie wearing, ivy league piece of analysis can be summed up in my blue collar, t-shirt wearin', Bud Light drinking, having sex with my best friends mom with no condom two words. "No Shit!"

Sat, 03/24/2012 - 13:32 | 2286766 BobPaulson
BobPaulson's picture

Yeah, cause JPM has everybody's best interests a heart.

Sat, 03/24/2012 - 13:38 | 2286771 hedgehog9999
hedgehog9999's picture

Just like Vegas, Disneyland and all other mega fake environments created for Americans, now we have a mega fake economy to go with it via this politburo style central planning that's in place.

It is a pretty sad state of affairs indeed.

At the core though we are ALL part of it AS LONG AS WE CONTINUE TO PARTAKE IN IT.

Sat, 03/24/2012 - 13:39 | 2286774 carbonmutant
carbonmutant's picture

In other words, ther're pi**ing in the wind...

Sat, 03/24/2012 - 13:47 | 2286779 hedgehog9999
hedgehog9999's picture


Sat, 03/24/2012 - 14:08 | 2286821 Beam Me Up Scotty
Beam Me Up Scotty's picture

Sorry its not the wind.  Its the fan.  And the fan isn't pointed at them, its pointed at us.  First comes the piss.  You know what comes next........the SHIT!!

Sat, 03/24/2012 - 13:41 | 2286778 q99x2
q99x2's picture

If Corzine can be kept alive long enough to sing these JPM's, GS's, Obama's, the Big Bernank, they're going to go down with him.

Sat, 03/24/2012 - 14:14 | 2286833 Kali
Kali's picture

Really?  And who is going to bring them down?  How many years have they been getting away with all their bullshit. Until war breaks out or this house of card collapses NOTHING IS GOING TO HAPPEN.  The "leaders" of our society are getting away with blatant theft/corruption and laughing in our faces.  We are nothing but mice that are roaring. 

Sat, 03/24/2012 - 13:46 | 2286780 DormRoom
DormRoom's picture

Most of the debt is servicing  misallocation and malinvestment during the boom time.  Thus the marginal utility of money has decreased as it's deployed to prop up unproductive uses.

Sat, 03/24/2012 - 14:01 | 2286802 Schmuck Raker
Schmuck Raker's picture

Chimerica the Dutiful.

Sat, 03/24/2012 - 14:16 | 2286836 I am Jobe
I am Jobe's picture

All hail to Foxconn

Sat, 03/24/2012 - 14:11 | 2286828 lasvegaspersona
lasvegaspersona's picture

or as the Weidemers called it in Aftershock...gone to money heaven

Sun, 03/25/2012 - 01:52 | 2287941 Joseph Jones
Joseph Jones's picture

We know so many people collecting SSI that should be denied that it's not even funny. 

Sat, 03/24/2012 - 13:47 | 2286782 booboo
booboo's picture

Ya think maybe the morg finally realized that Ostalin really means it. This dude is on a mission and they are not out of the blast radius.

Sat, 03/24/2012 - 13:51 | 2286785 I am Jobe
I am Jobe's picture

Vodoo Econ- Well well- The Guns vs Butter Model is dead, that is so 80's, 2000 on, Food vs Iphones Bitchezzz. New era, you can have a smoothie the fucking smart phone users.

Sat, 03/24/2012 - 13:51 | 2286786 nestle
nestle's picture

This is Bullish!!

Sat, 03/24/2012 - 13:51 | 2286787 spencer
spencer's picture

Watch this:


Battle of the Athens:


Any resemblance to Ron Paul?

Sat, 03/24/2012 - 14:20 | 2286842 lynnybee
lynnybee's picture

Battle of Athens.   thank you, spencer, for posting that.   it made my day.    if only it were that easy.   

Sat, 03/24/2012 - 15:32 | 2286930 spencer
spencer's picture

you are welcome - I was shocked myself when I saw that. It is absolutely amazing.

Unfortunately for us those people are long gone - we can't pretend we have smart and brave population ready for action in defense of our freedom and the Constitution.



Sat, 03/24/2012 - 15:31 | 2286929 Optimusprime
Optimusprime's picture

Totally.  Fuckin'. Awesome.  Thanks for the great link.

Sat, 03/24/2012 - 15:48 | 2286937 spencer
spencer's picture

It would be even more awesome if people exposed the current primaries manipulation.

Unfortunately the media are involved on the wrong side of this.

Here is a backup link at youtube:


Maddow Explains How Ron Paul May Be The Current Republican Front Runner In The Presidential Race!

Sat, 03/24/2012 - 21:10 | 2287587 JW n FL
JW n FL's picture




Watch this:


Battle of the Athens:


Any resemblance to Ron Paul?


All Americans Must Watch Documentary - Hacking Democracy

Sun, 03/25/2012 - 01:58 | 2287949 Mary Wilbur
Mary Wilbur's picture

Wow! What a great story. Thanks for the history.

Sat, 03/24/2012 - 13:53 | 2286793 blindman
blindman's picture

so okun's law isn't really a law but more like
a fucking wild guess made by a fucking idiot on
the payroll?
did i get that right? the tests around here just
keep getting harder. sheesh

Sat, 03/24/2012 - 15:31 | 2286920's picture

I think the point is that long standing metrics are no longer functional. It was something along those lines that started John Williams on the path to being the Shadow Stats guy. The broken "law" indicates that something is not adding up the way it used to do.


One of my early clients was a large manufacturer of commercial airplanes, who had developed an econometric model for predicting revenue passenger miles. The level of revenue passenger miles was their primary sales forecasting tool, and the model was heavily dependent on the GNP (now GDP) as reported by the Department of Commerce. Suddenly, their model stopped working, and they asked me if I could fix it. I realized the GNP numbers were faulty, corrected them for my client (official reporting was similarly revised a couple of years later) and the model worked again, at least for a while, until GNP methodological changes eventually made the underlying data worthless.




That began a lengthy process of exploring the history and nature of economic reporting and in interviewing key people involved in the process from the early days of government reporting through the present.

Sat, 03/24/2012 - 13:54 | 2286794 trulyslide
trulyslide's picture

When all of the easy, redundant, lazy people jobs have been eliminated and the remaining jobs cut in half, there will be those who buckle down and get by - to form some foundation of a real economy - and those who won't know how to because they've never had to work hard.

Sat, 03/24/2012 - 13:58 | 2286796 I am Jobe
I am Jobe's picture

Comeon now, there are no lazy redundant folks . just a tad bit challnged folks who think they are entitled to everything including paying for childcare, raising their childen, all courtesey of tax payers , what's left of it.


Sat, 03/24/2012 - 13:58 | 2286797 spooz
spooz's picture

without labor, where does consumption/demand come from?

Sat, 03/24/2012 - 14:14 | 2286835 I am Jobe
I am Jobe's picture

You mean to tell me Facebook Posting, Sexting, Texting and Zynga games is not labor ..... many folks think that it is, especially the one who sold the crap to the public to keep them from thinking real labor....

Sun, 03/25/2012 - 01:40 | 2287933 Mary Wilbur
Mary Wilbur's picture

The masses are drugging themselves with this shit. They don't want to hear what the problems are and they wouldn't understand if you told them. It has taken me quite awhile to get my head wrapped around the stinking mess we're in.

Sat, 03/24/2012 - 13:58 | 2286798 blindman
blindman's picture

the thing about macro models is they may hold
true, in theory, for the globe or universe
over time but be contradicted by local micro
experience, but all that is transient. not to
worry as your suffering will not last that long
as the system self corrects over and in the fullness
of time. have a nice Day.

Sat, 03/24/2012 - 14:05 | 2286811 Motley Fool
Motley Fool's picture

It's curious that they did not calculate the decrease in productivity as implied by the divergence of the ratio. Of course one has to bear in mind their unemployment numbers are bullshit.

Sat, 03/24/2012 - 14:09 | 2286824 Snakeeyes
Snakeeyes's picture

Here are charts I put together for a presentation in Washington D.C. We ARE Europe. The only difference is our Fed is much more aggressive than the ECB. But have we REALLY changed compared to Europe?

Obamacare and continued TBTF government policies in the US are GROWING making us more and more like Europe.

Call it "Lock Step."

Sat, 03/24/2012 - 14:11 | 2286829 AnAnonymous
AnAnonymous's picture

More complexity to hide US citizen economics dead end: infinitive growth. The formula states no limits.

Quite simple though and certainly not caused by central planning.

Work is consumption.

Abundance supports a high level of activity.

As abundance is getting a thing of the past, resources are lacking to maintain full time employment and therefore, part time employment gains ground.

Sat, 03/24/2012 - 15:05 | 2286895 TheFourthStooge-ing
TheFourthStooge-ing's picture

The current situation is one of silly people who gamed themselves, living at the expense of intelligent people.

Intelligent people can no longer sustain silly people, led by Chinese citizenism, in all their mistakes.

It's a shame, but that's the way it is. AnAnonymous proves the point.


Sat, 03/24/2012 - 15:28 | 2286921 AnAnonymous
AnAnonymous's picture

For this to be something else than US citizen fantasy, stupid people should have been the engine.

They were not.

The corner has been drawn by US citizens.

Sat, 03/24/2012 - 16:50 | 2287038 TheFourthStooge-ing
TheFourthStooge-ing's picture


For this to be something else than US citizen fantasy, stupid people should have been the engine.

They were not.

Of course they were not. Like I said, intelligent people can no longer sustain silly people.

+1 to you for showing the good judgement to agree with me for once.

The corner has been drawn by US citizens.

Corner cutting, that is where Chinese citizenism citizens exceed the talents of all others. It is a sight to behold.


Sat, 03/24/2012 - 14:18 | 2286838 I am Jobe
I am Jobe's picture

Summation of all forces is fast approaching ZERO. Screw the Economist, useless a holes , and in the grp are the MBA's .

Sat, 03/24/2012 - 14:22 | 2286846 slewie the pi-rat
slewie the pi-rat's picture

of course it is broken!  the central "moral" precepts of economic endeavor have been nullified by TPTB to save their giant BK "holding companies" and their owners and political puppets

what a fuking JOKE!!! Hahaha

now this flying fuktard has "discovered" that "increaseing productivity" did NOT lead to increasing returns to production sufficient to generate confidence feedback loops

'confidence feedback loops' = gold+silver+ lead+food+supplies

this is still virtuous, just not to criminals, con men and ponzi artists, is all, BiCheZ!

Sat, 03/24/2012 - 14:26 | 2286848 Hohum
Hohum's picture

The quality for quantity jobs situation isn't new.  It happened long before 2009.  And, guess what, no one is going to change that.

Sat, 03/24/2012 - 14:26 | 2286849 Wannabee
Wannabee's picture

Quantity for quality......
Put in practice decades before Barry.

Sat, 03/24/2012 - 14:30 | 2286855 the 300000000th...
the 300000000th percent's picture


Sat, 03/24/2012 - 14:31 | 2286858 lasvegaspersona
lasvegaspersona's picture

doesn't count plan D

Sat, 03/24/2012 - 14:33 | 2286860 Dasa Slooofoot
Dasa Slooofoot's picture

Politicizing a central bank is the usual precursor to hyperinflation.  Looks like we're right on track. 

Sat, 03/24/2012 - 14:37 | 2286863 KickIce
KickIce's picture

What an asswipe, they're the ones that have bought the politicians and lobbied for the legislation.  They are the central planners.

Sat, 03/24/2012 - 14:40 | 2286871 I am Jobe
I am Jobe's picture

How dare you, it is not the Amerikan way, you need to find someone else to blame.  End of story,

Sat, 03/24/2012 - 14:48 | 2286867 gwar5
gwar5's picture

Romer:  "It is Unprecedented...."


.... Well, Keynesians have been breaking laws all over the place because they have been dead wrong about everything and are just scratching their heads bumfuzzled why their models are just not working out.

We all know they have already shamelessly resorted to manipulating  all of their economic numbers to goal-seek compliance with their models. Very troubling. If their models are all broken then they are truly flying blind and don't know what they are doing. They can't even pick a good spot to crash land.

Sat, 03/24/2012 - 14:52 | 2286881 tickhound
tickhound's picture

'crash' has been taken 'off the table' lol

Sat, 03/24/2012 - 14:47 | 2286875 I am Jobe
I am Jobe's picture

Get MIT and Priceton to retract the PhD's to the idiots who hugged the Keynesian Econ Model. Fucktards running around thinking they know all the shit there , except these guys are worthless with their so called degrees and their fucking positions they hold. Coming undone, and the sheeples have embraced the model and going for their fucking MBA's with no taught process because it pays. Will never hire a bum fuck MBA period.

Sat, 03/24/2012 - 14:51 | 2286879 Atomizer
Atomizer's picture

Obama fails to tell you how the monies are being Skimmed off.

Sat, 03/24/2012 - 14:58 | 2286886 no life
no life's picture

Time to drop back and punt.

Sat, 03/24/2012 - 15:09 | 2286901 Stuck on Zero
Stuck on Zero's picture

What's missing from the equation is the black market economy.  It's growing massively. 

Sat, 03/24/2012 - 16:20 | 2287009 ekm
ekm's picture

Very astute. Typical for controlled economies.

Very, very astute.

Sat, 03/24/2012 - 16:45 | 2287012 ekm
ekm's picture

Just checked you bio.

I do not have much respect for Ivy League guys, but in Physics??? You must be an exception to the rule.


Edit: I meant professional respect. Everybody is due human respect.

Sat, 03/24/2012 - 15:11 | 2286903 mbasham
mbasham's picture

This is foremost a piece of political propaganda, with bits of truth wrapped in pure BS. JPM and JDimon are probably the biggest beneficiaries of Geithner and Bernanke policies, and now seeing the writing on the wall, JPM is saying it's going to take its bucket and go home from the sandbox? Please... 

Obama's first action of second term should be to replace Timmy and Eric Holder also, who has been persona non grata as far as Wall St. executive prosecutions.

Last action of second term, assuming Bernank- doesn't resign, is to replace him-something he should have done by asking Volcker to come back even if for less than one full term as Fedhead.



Sat, 03/24/2012 - 16:58 | 2287058 slowimplosion
slowimplosion's picture

It is funny reading all of this.  So now we trust JPM?  LOL

Sat, 03/24/2012 - 15:30 | 2286925 Mtn_Wolf
Mtn_Wolf's picture

More doom and gloom crap...but the market S&P still no matter how you [people],put CANNOT DEFEAT THE BANKERS, THE TREASURY, THE FED, THE GOVERNMENT AND WALL STREET...

"""THEY WILL ALWAYS PREVAIL"""""  so keep preaching the doom and gloom crap while I go LONG on this maket...

Sat, 03/24/2012 - 15:42 | 2286949 nick howdy
nick howdy's picture


True, but eventually they'll just kill each other...

Go long the market even if you are investing in a criminal enterprise...THAT MAKES SENSE. 

Sat, 03/24/2012 - 15:50 | 2286961's picture

That's just silly. Nothing lasts forever.

Sat, 03/24/2012 - 16:06 | 2286986 t_kAyk
t_kAyk's picture

on a long enough timeline...

Sat, 03/24/2012 - 23:34 | 2287783 the grateful un...
the grateful unemployed's picture

you poor fool, that's why they designed the nothing economy, built on nothing for nothing, with nothing, it lasts forever

Sat, 03/24/2012 - 16:12 | 2286995 lizzy36
lizzy36's picture

The one constant in life is change.

The S&P is not the economy, it is not the country.

The best investment one can make is in themself. Own equity in your life.

If you can't beat 'em....join 'em only works until it doesn't.

One can still have positive Pnl, while understanding that a rigged corrupt game doesn't last forever. 

Sat, 03/24/2012 - 16:17 | 2287002 ekm
ekm's picture

Be patient. When it collapses, it's going to be 2000 dow pts in one or two days.

Sat, 03/24/2012 - 16:15 | 2287000 ekm
ekm's picture

There's a time for everything..........

Sat, 03/24/2012 - 15:33 | 2286933 ekm
ekm's picture

Let me sum it all up. I've lived in communism.

- USA has totalitarian government. Obama openly wants to Cubanize america.

- USA has totalitarian economy. Medical care, banks, cars, military industry are owned by or merged with government. What's left for private sector?

- USA does NOT have a totalitarian minded society................yet. Ruger halting new gun orders is an example.

The last one depends entirely on the desire of the americans to have such a cubanized society.

To be, or not to be............

Sat, 03/24/2012 - 15:52 | 2286966's picture

I'll vote for to be and then some.

Sat, 03/24/2012 - 15:53 | 2286969 ekm
ekm's picture

Pls clarify.

You want to be cuban (totalitarian sense, not national sense), or want to be American?

Sat, 03/24/2012 - 15:58 | 2286976's picture

I want to be (live) and then some (thrive).

Sat, 03/24/2012 - 16:01 | 2286978 ekm
ekm's picture

You are philosopher

Sat, 03/24/2012 - 16:14 | 2286999's picture

Naw, just a redneck with a library.

Sat, 03/24/2012 - 16:15 | 2287001 ekm
ekm's picture


Sat, 03/24/2012 - 16:05 | 2286985 JW n FL
JW n FL's picture



I want JUSTICE for these bottom feeders.. who have destroyed our Manufacturing Base.. and our Tax Base.. and soon our Country will be broken into pieces so that they.. the bottom feeders can Gorge themselves full of the Destruction that they have caused.


Given the speed with which Obama keeps handing out new and more far reaching powers to the Department of Homeland Security..


Given how fast People, Regular People.. who have NEVER Owned a Gun Before are snapping up everything that is not tied down!


I can only hope that in my life time that I will be able to personally pass out some of the Justice that is Due!


Sat, 03/24/2012 - 15:48 | 2286951 nothing can go wrogn
nothing can go wrogn's picture

Lewis Mumford wrote, "One of the plainest lessons of biology is that uncontrolled quantitative growth leads to malfunction through mongolism or giantism, or to premature death through tumors and cancers."

This applies to our current economic paradigm, which is essentially a pyramid scheme based on a cargo cult. "Cargo cults focus on obtaining the material wealth (the "cargo") of the advanced culture through magic and religious rituals and practices."

This is why Lloyd Blanfein thinks he is doing "god's work," and why we are told that if the high priest Bernanke just pushes the right buttons and pulls the right levers, the horn of plenty will start giving up the goods again.

The adoption of mathematics and fancy theories or "laws" by economists or "clergymen." Is merely an attempt to lend pseudo-scientific crediblity to a religious cult.

The cancers and tumors of this mongol child have become all too apparent though, and the article concludes correctly that "it won't be much longer until the wheels finally and terminaly fall off the centrally panned bus tour."

Sat, 03/24/2012 - 15:58 | 2286958 JW n FL
JW n FL's picture



And there are those who wonder why we detest "central planned" attempts to attain a fake equilibrium more than anything. Luckily, now that the core driver of economic growth has failed just so a centrally planned administration can get 4 more years of "hope and change" it won't be much longer until the wheels finally and terminaly fall off the centrally panned bus tour.

But look how well it works in China! Soft Landing comes this way! LOL!!

All this does it create and equal(ish) 3rd world playing field.. that has been Corporatized

Wage Arbitrage not Country v Country.. thusly systemic protectionism.

Now we will have Lower Bidder 3rd World States, IN THE UNITED STATES!

All of you Slaves and your Organized Labor! HAH! Look at You Now!

Dont make the Powers that be send over the Unionized Police to Teach You A Lesson! LULZ!

The Working Class Slaves of America have been COMPLETELY DIS-ORGANIZED!

What’s Next?

Agenda 21, as Executed already by the President(s)?

Or how about the New Heavy Handed Government being discussed NOW? that has already been given teeth with the new legislation passed against Protests / Freedom(s).

U.N. Policy Paper Outlines 7 Building Blocks for 'Heavy-Handed' World Government Friday, March 23, 2012

it is happening all around us.. the laws, freedoms once some what afforded the illusion of a non-procedural judicial have been pitched.. in favor of an outright bashing of liberties.

no one says anything.. the Baby Boomers.. who out number everyone else.. just want to make it out without having to deal with the problem they ignored for the last 50 - 60 years.

and yet the Jews! here would make me out to be some kind of side show freak? Delusional, suffering from Paranoia??  

the sourced and sited information is skirted.. in favor of slant and spin.

The Truth is ALL around.. people would rather be happy.. thusly they ignore the truth surrounding them.

Soon there will be NOTHING! Left to fight for.. the Procedural changes coupled with the breeding down / dumbing down of Americans..

Equates to a shift in power, congrats Zionists! God Gave You this Land too I see!




Sat, 03/24/2012 - 18:47 | 2287294 Olympia
Olympia's picture


People should start getting ready for great trials ...for International Courts, where the current loan sharks shall give account. Monetarism criminals should sit on the same benches that once sat Nazi criminals. Rothschild, Rockefeller, Greenspan, Bernanke, Trichet, Soros, Buffett –and other “kids” of the loan sharking- should not sleep calmly from this point on. So, should also do their Quisling-type partners ...all the traitors who undertook power supported by the Monetarists and exercised leadership at the expense of their people ...Merkel, Sarkozy, Barroso, Zapatero, Papandreou and others.
 The world is getting “awake” from “narcosis” and pity to the one who shall be found to have made the wrong at the wrong time ...pity to the who “sedated” them to “rape” them ...pity to the one who shall be found holding the criminal “tube” ...pity to the one who threatened the future of the human kind.
Authored by Panagiotis TRAIANOU


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