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Living In A Land Beyond Belief

Tyler Durden's picture




 

From Mark Grant, author of Out of the Box

Living In A Land Beyond Belief

Europe has taken to making comments and engaging in either great promises of future events or the denials of any epitaphs on any gravestones in the days that separate Friday from Monday. The markets are closed these days and it has become an obvious strategy to swing the various banners of national interests or to offer such schemes and plans as would suit the people who live and die based upon bold faced headlines and who give no thought as to their meaning. The propaganda machines spew sweet cakes and sweet meats and hope that no one recognizes that someone must clean up after the retching that will invariably take place. I suggest to each of you that your concentration should not be placed upon offers of Nirvana but squarely and solidly upon what is actually implemented for it is there that the truth is found and it is from there that future events may be predicted.

The Spanish Finance Minister calls for unlimited bond buying by the ECB and schemes are floated of tying the yields of all of the periphery debt to that of Germany and each is heralded as brilliant in its conception and without consequence in the real world as if the blue fairies in some Elfin Kingdom are going to pick up the tab. Please notify me, contact me immediately day or night, when this Kingdom is discovered because it will be at that precise moment when I change my view on Europe and come to the conclusion that all can be righted without consequence and that the ECB is an institution outside of the boundaries of this universe as many people seem to think these days. When this Magical Land is found I will also believe, along with so many others, that the capital of Europe is unlimited, that Germany receives money from the mines of the Dwarves beneath Stuttgart and that the proprietors of all of the restaurants in Europe always pick up the bill and free lunches have been brought back to our world in a flurry of pixie dust and wizard’s incantations.   I am in France now; send me the Hobbits, Peter Pan is invited to any meal, I will go to any body of water and converse with Merlin and the Lady of the Lake, I will meet with anyone from Harry Potter’s Ministry of Magic upon a moment’s notice and having seen the proof of “Money for Nothing and Chicks for Free” I will recant at any Inquisition, Spanish or otherwise, and confess the errors of my ways.

Some who wander about in the lands of fantasy and make-believe point to the lack of Inflation and proclaim this the Rosetta stone of all of the grand designs for Union. Inflation is but one indicator, one consequence of many that are to be found under the heading of VALUATION which is the correct barometer for the success or failure of the plans in the offing. Here it is not just a discussion of Inflation or Deflation but valuation and its implications and consequences where the costs of goods and services vies with the capital to afford them at any price and where just who has what in their purse, past a promise of the coins that are in the purse, meets the reality of actually opening it and pouring out the contents on the round table of Camelot in front of the perhaps not so Joyous Garde.

For a thousand years and longer the Alchemists have promised that lead could be turned into gold and I have yet to see the proof of this oft promised accomplishment. Germany is responsible for 27% of the European Union and 22% of the European Central Bank and how Germany would not be affected by an unlimited balance sheet at the ECB or the cost of some Firewall of all Firewalls is an economic equation that eludes me. I suppose that when Keynes, or Galbraith or Friedman won’t suffice that one must return to Gandalf and the Lord of the Rings for economic wizardry and the magic of creating money from thin air. It is generally recognized that Quantitative Easing has consequences but here we have a new type of magic, we are told again and again, where capital can be freely distributed and no one is responsible or accountable for the disbursement.

Perhaps we have entered a new land where balance sheets only contain assets and where liabilities do not exist nor are they counted. In this Never-Never Land contingent liabilities will not be allowed to occur and bonds are always paid in full and on time and the markets’ rally and rally some more in recognition of our having enter into this new universe of fantasy and make believe. It is no longer a question of risk on or risk off because there is no risk at all and money is waved into existence by some new spell concocted at the end of Frau Merkel’s magic wand. Spain is not being bailed out it is only the banks and not all of the banks but just certain banks that are no longer important as they are guaranteed by the government who is in great financial shape and is not in recession and who has no unemployment as that is an old paradigm from some other universe that no longer exists.

I have been credited with some foresight from time to time and I now can see where all of this is going in our new universe where economic laws and fiscal policy have entered some black hole of a new kind of fiscal warp. The ECB will pay off all of the debt of Spain and Madrid will be free of all obligations. All Italian debt will also be paid off by the ECB and two of the core countries in Europe will require no firewalls at all or fiscal restraint or any measures of austerity since debt no longer exists for these nations. Germany, in a grand gesture, will forgive all of the debts of Greece and each electric utility in the world now can use olive oil in a new process invented by Apple and Athens replaces London as the monetary capital of Europe. This new plan will not only be promised but implemented for all of the nations of Europe and the ECB, whose liabilities would normally be in excess of seventy-five trillion dollars will have none either because the printing presses are rolling and money is arriving from the new, new universe that will replace the new, new normal in everyone’s thinking. Magic will have returned to the Continent and diamonds are glittering upon the streets of St. Tropez and the Champagne flows, without cost of course, at each and every restaurant in the town square. I admit, I was there the other evening and did not see it but then I am an American and inhibited in my abilities to see such things. The Euro will be worth fifty times the value of any other currency when the debts of the Continent are erased and the banks will all be re-capitalized with the diamonds shipped in from St. Tropez. The products of Germany will have buyers without end and the new market for German goods, recently discovered on a small planet slightly to the left of Alpha Centauri, miraculously also has Euros to pay for them.

Buy everything I say without limit. Leverage each purchase to the maximum allowed under the law. The markets will only go up and not down and 100,000 is the next stop for the S&P. It is to be Dow without Jones, assets without liabilities and wealth without poverty. The Middle Class has been evacuated and everyone is wealthy beyond belief. It is just there, of course, that the truth lies in this merry old land, “beyond belief.”

“I like fantasy---it wakes up the brain cells.”

 

Dr. Seuss

 

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Mon, 08/20/2012 - 08:16 | 2720107 Rakshas
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Truer words.......

 

Rock on Doc

Mon, 08/20/2012 - 08:20 | 2720113 GetZeeGold
GetZeeGold's picture

 

 

Kansan's for truth. Now if we could just get back there.

 

Point the way Toto....ignore the Debbie Wasserman Shultz ad. She's an evil witch.

 

 

Mon, 08/20/2012 - 08:36 | 2720146 TrustWho
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AGREE

Mon, 08/20/2012 - 15:53 | 2721474 BigJim
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Is it me, or is Mark Grant an appalling writer?

He also seems to have been put onto some kind of comma diet, husbanding them for some prospective deployment where they will be of more use in the future than the mere delineation of his sentences' component phrases in the present.

Mon, 08/20/2012 - 08:21 | 2720117 falak pema
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I like the part where Gen Grant says : I have been credited with foresight....At Gettysburg, it was no foresight, just blood, bones and dead foreskin. 

But then print to infinity hopium is like the emergence of a Nation, in very, very, slow motion...thirty years, then wake me up; or my avatar! 

Mon, 08/20/2012 - 08:57 | 2720192 jimod
jimod's picture

Grant was not the union general at Gettysburg.   McLellan, I believe, but he wasn't even on the field for the first day.   Which maybe makes your point better, in the fog of war and the mists of time obscure the reality which will be defined in hindsight by the victors, whoever they may be.  To be sighted in a land of the blind, Tyler's fantasy?

Mon, 08/20/2012 - 08:22 | 2720118 new game
new game's picture

all that matters is what you have that is owned outright, a means to protect it and your frame of mind.

ever ocur to you that all these know it alls are making money off the system and people that can't think for themselves - huh.

Mon, 08/20/2012 - 08:23 | 2720122 GetZeeGold
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Words of wisdom.....locked in for all eternity.

 

Mon, 08/20/2012 - 08:43 | 2720165 AlphaDawg
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Shot!

The older I get, the more I learn it is important to make your own judgements instead of trusting the skills and integrity of others.

Mon, 08/20/2012 - 11:28 | 2720583 barroter
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"ever ocur to you that all these know it alls are making money off the system and people that can't think for themselves"

I agree. Today's markets, whatever they may be, selling paper clips or derivatives, exist due to some having more information/brains/speed over those who don't have it.  Beguiling the ignorant is what it's about.

I wonder how proud some of these Masters of Finance can feel when they rob the retarded. It doesn't take that much really to do it. Pretty much anyone can beat the hell out of a 7 year old girl when it comes to fist fighting. There's no match.

Now how do you defeat them w/o spending too many calories? I don't engage these two legged insects, as far as I am able too.  I don't care what you're selling buddy, if I can do w/o it, I will.  And I'm sure the product/service you're trying to sell me benefits you far more than me.

I enjoy telling myself, after blowing off their sale's pitches...you LOSE.

Mon, 08/20/2012 - 12:15 | 2720723 illyia
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While the cynicism is justified the "ignorant" are often those who served their country, faithfully - who played by the old rules when they still operated. Just because the criminals are running the show does not mean that the common man was a fool. JQP has been sold a bill of goods through an endless stream of propaganda for decades. Only now, with the bills coming due (for crimes like theft and fraud) are the shrill tones of the shills obvious.

Publications, such as the one below, are making their way around now. Something you would have never seen during the Bush years when not having a flag drapped over your soul could result in a wicked sort of ostracism. Bushco took the Goebbels'** legacy to a whole new level. If every trend goes too far and then reverses, perhaps that marked the top.

I found this list yesterday, on Barry's The Big Picture. Hardly a bastion of looney thinking!

http://www.brasscheck.com/martin.html

**"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

Mon, 08/20/2012 - 08:32 | 2720120 Disenchanted
Disenchanted's picture

 

 

 

Leave your hands off my unicorn shittles! /s

Mon, 08/20/2012 - 08:22 | 2720121 Skateboarder
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When fantasy has replaced reality, there is no waking up.

Mon, 08/20/2012 - 08:58 | 2720201 AlaricBalth
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So forget all that you see
It's not reality, it's just a fantasy.
Aldo Nova
http://www.google.com/url?sa=t&source=web&cd=2&ved=0CEgQtwIwAQ&url=http%...

Mon, 08/20/2012 - 13:24 | 2720945 A Nanny Moose
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no leopards were harmed in the making of that video.

Mon, 08/20/2012 - 08:24 | 2720124 Jlmadyson
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Wonderland baby!

Like I've always said.

The weekend BS has reached heights not even imagined.

The boy that cries wolf until he doesn't.

Mon, 08/20/2012 - 08:26 | 2720125 DormRoom
DormRoom's picture

When ideologies fail believers turn to denile.  Central Bankers believe they can regain the growth of the last 30 years without infinite debt.  Denile.

 

The steady state is not beautiful deleveraging.  It is either hyperinflation or a great deflation followed by a collapse.  Let the 1% choose what it shall be, and for what nation.

Mon, 08/20/2012 - 08:31 | 2720138 GetZeeGold
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It was a sad day when I found out I was in the 86%........didn't have what it took to make it to the 99%.

 

I asked if there was something they could do. They just shook their heads.....sorry Amigo.....you just don't have what it takes.

 

Mon, 08/20/2012 - 08:26 | 2720128 caimen garou
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I dont mind having brain cells awaken, i just dont like them being totally shocked by BULLSHIT!

Mon, 08/20/2012 - 08:27 | 2720130 Oldwood
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Fantasy consumes us.

Mon, 08/20/2012 - 08:27 | 2720131 Disenchanted
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re: "Money for Nothing and Chicks for Free"

 

I liked this version better: Money from Nothing and Shiksas for Free

Mon, 08/20/2012 - 08:28 | 2720134 JamesBond
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"Sometimes the questions are complicated and the answers are simple."

 

dr. seuss

 

 

 

Mon, 08/20/2012 - 08:28 | 2720135 buzzsaw99
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The maggots thought they could build castles to the sky by taking stones out of the foundation.

Mon, 08/20/2012 - 08:30 | 2720137 jcpicks
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I want to take the red pill....

Mon, 08/20/2012 - 08:31 | 2720141 GetZeeGold
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No problem....put it on Mastercard or Visa?

 

Mon, 08/20/2012 - 08:33 | 2720143 TrustWho
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Well, this fantasyland was created by Daddy Bernanke. Timmy Boy goes around the world praising the magic of printing money. The Greeks would have No Problems if they could print money.

The world of fantasyland started right here in good ole USA!

Mon, 08/20/2012 - 09:52 | 2720331 sdmjake
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Think it started before Bernanke showed up but he is doing his best to exacerbate the fantasy...

Mon, 08/20/2012 - 08:38 | 2720149 stiler
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To be, or not to be, that is the question:
Whether 'tis Nobler in the mind to suffer
The Slings and Arrows of outrageous Fortune,
Or to take Arms against a Sea of troubles,
And by opposing end them: to die, to sleep
No more; and by a sleep, to say we end
The heart-ache, and the thousand Natural shocks
That Flesh is heir to? 'Tis a consummation
Devoutly to be wished. To die to sleep,
To sleep, perchance to Dream; Ay, there's the rub,
For in that sleep of death, what dreams may come... 

Shakes.

http://en.wikipedia.org/wiki/To_be,_or_not_to_be

Mon, 08/20/2012 - 09:22 | 2720263 covert
Mon, 08/20/2012 - 08:41 | 2720157 francis_sawyer
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I'm not leaving until I get my after dinner mint...

Mon, 08/20/2012 - 08:45 | 2720168 jimod
jimod's picture

Reality isn't what it used to be.

which is not to say

Reality is not what it's cracked up to be.

The line between fantasy and reality is the line between technical and fundamental trading, isn't it?

It's painful to prefer fundamentals these days.  The world is upside down.

Mon, 08/20/2012 - 08:53 | 2720182 SwingForce
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I have a name for the new centauri: Planet Stoopider. Or is that Noddyland?

 

Mon, 08/20/2012 - 08:53 | 2720183 Lost Wages
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I need more monopoly bucks to play with. Poker chips. Dollars.

Mon, 08/20/2012 - 09:00 | 2720207 Shizzmoney
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Wait, we can't just borrow our way into prosperity?

Looks like consumers are thinking the same, and have had enough with debt serfdom.  Unfortunately for them, they don't have enough money to buy a politican who can pay for that debt....with other people's money.

http://t.co/cZy53PLG

Mon, 08/20/2012 - 09:06 | 2720223 Cranios
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Fed or ECB (or both) can infinitely expand balance sheets, make Dow or Dax go up as much as it wants without leverage. Maybe they are already doing that??

Mon, 08/20/2012 - 09:18 | 2720257 Cosimo de Medici
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Apparently Bernanke, Geithner and TPTB have found a cure for Dow(n) Syndrome.

No offense meant.

Mon, 08/20/2012 - 09:24 | 2720267 AynRandFan
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We passed through the looking glass when western culture adopted the "need equals right" moral paradigm.  Socialism cannot contemplate failure, because individuals never bear responsibility.  All losses are socialized.  If they weren't we would never give up our freedom to individualize our own successes.

This is the gravity of the situation in Europe.  To allow failure of the EU is to admit the failure of their socialistic culture.

Mon, 08/20/2012 - 10:17 | 2720391 falak pema
falak pema's picture

You're right in your choice of avatar as she was atheist. For your christian counterparts who love her, there is a problem; as early christians during the evangelical period were all communists and believed in social "equal rights" moral paradigm. By defintion, as ALL are/were God's children. So we passed thu that looking glass back in 33 AD when Jesus died... 

Ayn was right to be atheist and believer in "me first, greed is sooo good". 

The best order for people like that is the Caesarian order. Being top dog is soooo good, pity it makes others greedy and Caesar often dies in violence. Oh well, can't have your cake and eat it. But we are doing our level best to go back to it today! 

Human nature is such a bitch, it never gives the small guy a chance, except in the novel, all dressed up as John Galt.

 

 

Mon, 08/20/2012 - 10:24 | 2720414 shovelhead
shovelhead's picture

Hehe,

No sweat folks. All those ammo sales the Govt. made just prove that salvation is around the corner.

Watch for the new New Deal to be announced.

You're gonna get an offer you can't refuse.

 

 

Mon, 08/20/2012 - 10:47 | 2720483 stiler
stiler's picture

ah yes, bread for the masses. I'm reminded of Salieri in Amadeus. "I am the patron saint of mediocrity. I absolve you!"

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