• Gold Money
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    Crude oil time-spreads have completely dislocated from inventories. Historically, such dislocations have proved to be short lived. We expect that either spot prices will sell-off again or the back...

Momentarily Stepping Back From The Trees To Show These Two Charts Of The Forest

Tyler Durden's picture


Every time we get too bogged down by details, minutae, nuances, footnotes, rumors, lies, or, at the very bottom of the bullshit pyramid, Eurocrat promises, and think that maybe, just maybe, there is a way to fix the mess we are in, we take a quick look at what is in store (most recently recapped by Deutsche Bank in the form of the following two charts) and quickly realize that all concerns about a happy ending have been for nothing.

Self-explanatory chart #1:

And self-explanatory chart #2:

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Tue, 06/26/2012 - 15:09 | 2562476 slaughterer
slaughterer's picture

Let's just nickname these charts "The Bernanker Boner Charts" here on ZH ;-)  Makes it easier for all of us.  

Tue, 06/26/2012 - 15:09 | 2562494 Winston Churchill
Winston Churchill's picture

John Williams over at SGS says it will end 2014 ,if not before.

Only a politician could think you could kick a can that far.

Tue, 06/26/2012 - 15:20 | 2562544 Manthong
Manthong's picture

Those charts are likely way too conservative.

There is no way the system will survive through next year without present tax policy being extended and additional tax cuts and even tax credits or government stimulus checks being dropped from helicopters.

The party is just beginning.

Tue, 06/26/2012 - 15:52 | 2562653 Aziz
Aziz's picture

They cut all the forest down to print Benny bucks.

Tue, 06/26/2012 - 16:02 | 2562684 idea_hamster
idea_hamster's picture

"at the very bottom of the bullshit pyramid, Eurocrat promises"

Cramer isn't at the bottom of the bullshit pyramid?  Perhaps he's the peak -- the ultimate evolution of the bullshit pyramid?  Not sure which is the business end of this metric...not that it matters.

Tue, 06/26/2012 - 17:31 | 2562965 old naughty
old naughty's picture

with all the Ivy-Leaque education and "prestigious" prizes won, you would have thought "they" would see the forest already !!!

How wrong we were.

Tue, 06/26/2012 - 17:41 | 2563008 Pinto Currency
Pinto Currency's picture


Why fret?

Greenspan says you can't recognize a bubble till it has burst.

You just have to wait and then clean up.

Wed, 06/27/2012 - 07:52 | 2564441 DavidC
DavidC's picture

Nah, they can't see the wood for the Ivy...


Tue, 06/26/2012 - 17:44 | 2563015 Marginal Call
Marginal Call's picture

I'm gonna miss all the cotton trees. 

Tue, 06/26/2012 - 18:48 | 2563170 Fedophile
Fedophile's picture

Cotton is no tree and polymer is the future.

Tue, 06/26/2012 - 19:01 | 2563201 koperniuk666
koperniuk666's picture

Fedophile - love the name - well thought up! 

but why do you have a picture of an 'arse'?

surely a catholic hanging out of the back of a young banker would be more appropriate?

Tue, 06/26/2012 - 19:30 | 2563262 Marginal Call
Marginal Call's picture

Yeah, that was a joke responding to a comment about  Benny cuttin down the forests.  Those polymer notes melt in the dryer.


Don't forget to empty your pockets. 

Tue, 06/26/2012 - 19:31 | 2563266 ProtectiveFather
ProtectiveFather's picture


The seeds of those things are annoying.

Tue, 06/26/2012 - 19:46 | 2563296 Temporalist
Temporalist's picture
Hemp car made by FORD: 'Bio-degradable auto parts' green car dream of celebrity manufacturing giant


Wed, 06/27/2012 - 00:07 | 2563981 Overfed
Overfed's picture

Sheeit. I've got a couple of old Jeep trucks that are starting to look pretty biodegradable these days.

Tue, 06/26/2012 - 18:38 | 2563152 Stoploss
Stoploss's picture

To sustain that, a whole lot of oil will have to be liberated, and a whole lotta shit will have to be blown up. Im not sure there is enough oil and shit to get to that number.

Tue, 06/26/2012 - 19:48 | 2563239 Bicycle Repairman
Bicycle Repairman's picture

Maybe, yes, maybe, no, but it won't be for lack of trying.  And it's not so far fetched to think that they could pull it off.

Wed, 06/27/2012 - 03:14 | 2564236 cynicalskeptic
cynicalskeptic's picture

Would be so much simpler (and cheaper) to simply monetize toilet paper.......   and as a bonus your  'money' would still have some utility value when its buying power goes to zero (which is what's going to happen with whatever fiat currency is issued)


remember, you couldn't even use 100 trillion zim dollars to wipe your butt in the end of THAT cluster f**k.......    (banknote paper clogs the plumbing)



Wed, 06/27/2012 - 09:30 | 2564657 monad
monad's picture

Thats why we're switching to electrons. There aren't enough trees.

Tue, 06/26/2012 - 16:11 | 2562717 JeffB
JeffB's picture

They're also not counting all of the debt. The 1st chart is showing a debt to GDP of under 80% when in actuality, it is already over 100%. www.usdebtclock.org/

They apparently don't count inter governmental debt, presumably because we "only owe it to ourselves" as though they don't really have to pay on the bonds held in the "Social Security lockbox".

If you add in the "unfunded" and "off-the-books" items, and the guarantees on the GSEs etc. the numbers go even higher.

It's quite sad when even the grossly manipulated numbers can't be made quasi palatable.


Tue, 06/26/2012 - 18:14 | 2563052 socalbeach
socalbeach's picture

If SS runs a deficit of say $50 billion in 2014 (I made that number up), then in 2014 the Treasury has to issue $50 billion extra in bonds to pay the recipients, the same as if the lockbox didn't exist.  That $50 billion would then show up as extra debt in 2014, the year it was spent.  I assume the deficit projections above are already taking into account the extra social security spending in future years. 

Whoever dreamed up the SS intra-governmental debt and lockbox ideas deserves some kind of prize for obfuscation.  That debt isn't worth the paper it's written on, the money it represents has already been spent, and the debt is not marketable.

Tue, 06/26/2012 - 20:50 | 2563475 Captain Kink
Captain Kink's picture

off balance sheet...been going on forever.

Tue, 06/26/2012 - 19:09 | 2563216 Bunga Bunga
Bunga Bunga's picture

240% in 30 years also means maximum 3% government deficit over that period and that is rather the best case. Since deficit is currently running closer to 10% and pocket calculators can't lie, we would reach modest 1,700% in 30 years.

Tue, 06/26/2012 - 16:17 | 2562737 masterinchancery
masterinchancery's picture

These charts do NOT include all the off the books debt in excess of 7 trillion, very dishonest of the CBO, train wreck ahead.

Tue, 06/26/2012 - 17:33 | 2562972 Not Too Important
Not Too Important's picture

Greg Palast, who studied with Milton Friedman in Chicago, seems to think the Euro was specifically designed to cause these crisis, and it's really all wildly successful:


It certainly will bring in the NWO for pennies on the dollar.

Tue, 06/26/2012 - 18:48 | 2563172 JeffB
JeffB's picture

Interesting article, though I seem to be in fundamental disagreement with Mr. Palast on some things and probably on his overall economic paradigm.

For instance, he seems to think the Euro is bad because the countries can't devalue their currencies to get out of their quagmire, but also complains about Mundell's plan to have the Euro force "'structural reforms' – a euphemism for worker-crushing schemes. They cite the nebulous theory that this "internal devaluation" of each nation will make them all more competitive.

Monti and Draghi cannot credibly explain how, if every country in the Continent cheapens its workforce, any can gain a competitive advantage."


If he studied under Friedman, I'm a little surprised Mr. Palast wouldn't see how reducing the cost of regulations and labor could possibly make the Euro nations more competitive. Perhaps he's looking at it as a zero sum game and they're all only competing with each other. But that's not really the case. They're competing in a world market, of course, and even if it was only among themselves, reducing costs and improving productivity would increase the size of the pie they're splitting.

It would be more plausible to me if he was saying that the evil PTB had set up this sysem knowing it would be relatively easy to get the nations to blow out their budgets and then the whole system would be in far worse trouble when the inevitable crash after the central bankers' artificially induced bubbles started bursting.


Tue, 06/26/2012 - 19:35 | 2563276 Marginal Call
Marginal Call's picture

The Greeks (and Spain) can't just cut their labor costs, when they joined the Euro their property values rose up to the income levels of the richer countries.  They either need a real estate crash, or a currency devaluation.


They are in a catch 22.  The bankers are taking Europe without a shot. 

Tue, 06/26/2012 - 19:47 | 2563300 JeffB
JeffB's picture

They could default on their debt. In fact, that's probably their best option in my opinion.

Their real estate market, like most in the western world should be allowed to drop to market clearing levels. Allowing the central bankers to keep trying their Sisyphean task of perpetually propping up their perverted market  is a recipe for disaster.


Wed, 06/27/2012 - 07:02 | 2564384 blindfaith
blindfaith's picture


Don't forget to consider the Real Estate bubble in Canada, Australia, China, Vietman, Indonesia, Japan, the rest of Asia, most of Central America, most of South America, and anywhere else that has decided to play 'musical chairs' get rich-turn-it-over ponzi game playing with fiat money.

Default on debt...blasphemy, I tell you !!!!  We will make it illegal to default and we will start with student loans.

Tue, 06/26/2012 - 15:14 | 2562520 FL_Conservative
FL_Conservative's picture

When you find yourself in a hole....stop digging.

Tue, 06/26/2012 - 15:41 | 2562616 francis_sawyer
francis_sawyer's picture

So I guess Obama was just kidding when he said he was going to cut the defecit in half by 2014... Oh well, back to the campaign trail...

Tue, 06/26/2012 - 15:49 | 2562643 FL_Conservative
FL_Conservative's picture

Actually, he thought YOU were kidding that you'd actually hold him to his word.  Liberal Democrats excel at writing checks their asses can't cash.

Tue, 06/26/2012 - 16:07 | 2562691 roadhazard
roadhazard's picture

Several repubican administrations have done the same thing. But you keep thinking your shit don't stink.

Tue, 06/26/2012 - 16:16 | 2562733 pismo10
pismo10's picture

Liberals are liberals it does not matter whether you call the dem or republican, it is still the same mindless disease.

Tue, 06/26/2012 - 16:22 | 2562754 roadhazard
roadhazard's picture

You need to quote fl_Conservative, not me.

Tue, 06/26/2012 - 16:44 | 2562829 bobnoxy
bobnoxy's picture

You're a mindless disease.

Tue, 06/26/2012 - 17:51 | 2563032 CABill
CABill's picture

The Democrat-Republican party is a illusion of choice.


The Republicans were against the Central Bank back in the day.

"a struggle between the Treasury department and the republican interest"

"The Republicans distrusted Hamilton's national bank and rejected his premise that a national debt was good for the country; Republicans said they were both forms of corruption. They strongly distrusted the elitism of Hamilton's circle, denouncing it as "aristocratic"; and they called for states' rights lest the Federalists centralize ever more power in the national governments."

Tue, 06/26/2012 - 19:33 | 2563270 Taint Boil
Taint Boil's picture





Increase in national debt per president chart. But hey this doesn’t matter, what is important is what Fox News says.



Thu, 06/28/2012 - 00:15 | 2567364 ultraticum
ultraticum's picture

Two questions for the chartist: 1) Where's Barry? 2) Who controlled CON-grease?

Tue, 06/26/2012 - 23:33 | 2563900 SmokeThatHog
SmokeThatHog's picture

You are a douche.  Go back to Drudge and fuck yourself.  All politicians spew the same shit, the Republicans just take money from dumbass bluehairs like you.

Wed, 06/27/2012 - 07:34 | 2564409 blindfaith
blindfaith's picture


Dear Fl Cuntservative

Why are so many Floridians so thick headed and uneducated on facts?

"Liberal Democrats excel at writing checks their asses can't cash."

Recall, G. Bush came into office with a handsome surplus, and left office with one of the biggest deficiets in history.  Had no problem handing out wads of checks/money, in cash, directly to every person in the country to 're-start' the recession he ushered in. Had no problem obgligating the US taxpayer to pay for the support and rebuilding of Iraq and Afghanstan for the next 30 years ( how about that as a fucking check written and no cash to cover it).  Shall I go on?  Shall I bring up the great master Ronald and how he drove up the debt so high he had no choice but to raise taxes? 

Open you mind, open your one eye, you are either on Zerohedge to become educated or your just another TROLL plant to piss everyone off with your West Coast/Orlando/Daytona/West Palm Beach hanginfg chad we-are-the-one-and-only-answer crap.

You PHONY tea party types cry like babies over issues you, yourself, helped to create and still, even right NOW, profit from. But, that is the whole idea..blame someone else but offer no sound, logical, realistic, workable solutions.

Tue, 06/26/2012 - 16:04 | 2562692 Patriot Eke
Patriot Eke's picture

Maybe he misspoke and meant the US population, not the deficit.

Tue, 06/26/2012 - 18:19 | 2563108 TWSceptic
TWSceptic's picture

Instead he cut our liberties in half, at least he cut something right?

Tue, 06/26/2012 - 15:46 | 2562637 grid-b-gone
grid-b-gone's picture

When the government finds itself in a hole, and the private sector has stopped digging, it borrows to buy more shovels and diggers to make up for the lost digging capacity.

The problem is, they don't dig in the private sector holes, but just dig their own unnecessary holes at an even faster rate.

Tue, 06/26/2012 - 15:50 | 2562647 FL_Conservative
FL_Conservative's picture

When the private sector stops digging, the government offers amnesty to illegals.

Tue, 06/26/2012 - 16:25 | 2562768 grid-b-gone
grid-b-gone's picture

Well, they offer amnesty to the illegal children of illegals, but the children then become the legal relation needed to legally sponsor mom and pop for permanent status, screwing those back in the homeland patiently waiting to do the same thing legally.

Tue, 06/26/2012 - 16:41 | 2562819 CH1
CH1's picture

those back in the homeland patiently waiting to do the same thing legally.

That's a very ignorant, very political comment. (And to me, "political" equates to "brain poison.")

If you actually give a damn about reality, I'll help you along:

Poor guys in Mexico have about a .00001% chance of immigrating legally.

Legal immigration is reserved for rich kids who want to party at US universities.

THAT is reality.

AND, there is a non-political term for immigration, used by people who have dropped out of the state cult...

It's called Moving.

Wed, 06/27/2012 - 07:39 | 2564430 blindfaith
blindfaith's picture


Who do you think emplys most of the illegals?  Tyson? Seafood industry?  vegitable growers?  Rich families who don't wnat to pay a minimum wage ot social security taxes.


You sir are a TROLL and  Plant

Tue, 06/26/2012 - 15:57 | 2562669 Dr. Engali
Dr. Engali's picture

Shovel ready jobs.

Tue, 06/26/2012 - 16:10 | 2562716 Offthebeach
Offthebeach's picture

( MrPanosBlog voice ) "Digging? I. Hear. CHINEEEEESE PEOPLES!"

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