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Notes From The Sales Desk: "All Glory Is Fleeting"

Tyler Durden's picture




 

From Brian Rogers of Fator Securities

All Glory Is Fleeting

“For over a thousand years, Roman conquerors returning from the wars enjoyed the honor of a triumph - a tumultuous parade. In the procession came trumpeters and musicians and strange animals from the conquered territories, together with carts laden with treasure and captured armaments. The conqueror rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children, robed in white, stood with him in the chariot, or rode the trace horses. A slave stood behind the conqueror, holding a golden crown, and whispering in his ear a warning: that all glory is fleeting.”  -from the movie Patton (1970)

Yet More QE3 on the Way

Markets are slightly negative this morning with Europe off by about -1.5% while the US is down about -0.5%.  All eyes and all thoughts today will be focused on what the Fed will say at 2:15pm.  For my part, I think the Fed will surprise to the upside in a big way.  To be fair, this does not at all seem like the market consensus, but I think the elephant in the room for the Bernank is US Treasury issuance. 

Specifically, during the period of QE2, the Fed purchased roughly half of all the new US Treasury issuance.  This was critical to keeping rates low and confidence relatively high in the primary market.  Going forward, the US Treasury will be borrowing on average between $200-300bn per month as we finance our enormous 2011 fiscal deficit and roll previously issued Treasuries that mature.  What sense would it make for the Fed to peg the short-end to 2013 and enact Operation Twist to compress the 10yr Treasury yield another 25bps only to see a weak Treasury auction blow yields out by an equivalent or even higher amount? 

After 3 years of QE, is the Bernank really willing to risk rising rates simply because he didn’t print enough?  For a man who has publicly advocated dropping buckets of money out of helicopters, I doubt it.  That’s why I think today’s announcement from the Fed will have a shock and awe component of between $500bn - $1tr of asset purchases.  They may buy corporate CP, Treasuries, mortgages and maybe even European debt while they’re at it.  Politicians, the inflation-istas and gold and silver will all go nuts, but it’s hard for me to imagine that one Ben S. Bernanke will go gently into that good night.  He has one tool at his disposal that no other central banker on the planet has, a currency printer with unlimited ink.  And you can bet your kids college money he’s going to use it.

The Next Salvo in the Global Currency Wars

Which brings me to a theme that has become more pronounced in the financial press over the last few months, the ongoing Global Currency Wars.  In fact, Jim Rickards has written a book on the theme that comes out this November.  I’ve already pre-ordered my copy.  No matter what the Fed ultimately does today, the medium and long-term options for the Bernank are limited in the extreme.  We’ve got $15tr in on-balance sheet debt, another $6tr in GSE debt we simply ignore and somewhere north of $50tr in NPV of entitlements.  For those keeping score at home, this is a mountain of debt we will NEVER pay off.  Ever.  No way. 

Of course, we won’t actually default on this debt in the honorable way by simply acknowledging we can’t pay it, default, restructure and move on.  No.  We will default the good, ol’ fashioned central banker way - we will print our way to oblivion.  The powers that be in DC and NY can’t see things any other way.  We’ve got the printing press, ergo we use it.  Inflation you whine?  Confidence in the USD you cry?  Such worries are for pansies.  We are the world’s super power, have the biggest, most lethal military on the planet by a large factor and have basically been able to engineer the world’s economy post-Bretton Woods in a decidedly pro-USD way.  With that kind of hubris and over 65 years of success with chants of “USA, USA” echoing in the background, you know the false flag-wavers that run our country will take the easy way out for the simple reason that they can.

So the Fed will keep printing because they can and because they really have no choice.  The rest of the world’s central banks are acutely aware of this and they are scared.  As they should be.  Because this means that in the fullness of time, the USD will go down and their currency - EUR, CHF, JPY, GBP, AUD, BRL, (insert fiat currency here) - will rise.  Which in turn means their exports will get more expensive, pressuring revenues, margins and economies in general.  Their reaction is predictable, they print their own currencies in a valiant, yet ultimately vain, effort to weaken.  The Swiss and Brazil central banks’ recent moves are indicative of the actions other central banks will soon have to replicate.  But no matter what other central banks do – cut rates, peg currencies, monetize debt, etc – they will ultimately be trumped by the Printer-in-Chief, Chairman Bernanke.  Only precious metals will escape this imbalance accumulation led madness.

The Missing Canteen

When I was much younger (and in better shape, thinner, etc), I served our country for 8 years in the US Marine Corps.  I’ll never forget one event that happened during my 3-month stay in purgatory, otherwise known as Marine Corps Boot Camp.  During boot camp in the Marines, you spend the first week basically getting processed into the system.  You get lots of shots and a battery of medical tests done.  You fill out mountains of paperwork and sign numerous documents.  You also get all of your uniforms and most combat gear assigned.  After this first week, you are transitioned from the drill instructors who have been “helping” you through this process to the drill instructors that will spend the next 12 weeks turning you into a freshly graduated Marine. 

For those that don’t know much about the Marine Corps drill instructors, let me tell you, they are a tough bunch, big time.  These are some of the meanest, toughest, most in-shape, disciplined men our country has to offer.  They command respect because they earn it, believe me.

In any case, when my platoon was being transitioned over to our future drill instructors, those same nice gentlemen came in to our barracks and initiated an inspection to make sure that whatever gear we were supposed to have been issued, was issued.  So the main drill instructor would call out an item like, “Hold up 2 pairs of camouflage trousers, do it now!”  At which point, 3 other drill instructors would walk up and down the barracks inspecting each and every one of us to make sure we were holding up 2 pairs of camouflage trousers.  At one point in the process, the call goes out for 2 canteens.  Hold up 2 canteens, do it now! 

Unfortunately, the guy next to me only had 1 canteen.  It wasn’t his fault, the supply depot that gave us our canteens had simply run out of canteens when we were there.  So they gave the guy a chit and told him to come back later.  However, the simple fact was the guy only had 1 canteen.  One of the drill instructors, who later turned out to be one of the toughest men I’ve ever met in my life, Sgt. Salazar, noticed that this guy was only holding up 1 canteen and proceeds to sprint down the length of the barracks and slide-stop to a position about 2 centimeters in front of the guy holding 1 canteen.

Sgt. Salazar is in his face barking at this guy like a pitbull about a whole litany of topics, most of which I have forgotten by now.  However, the last thing he said was classic, “Recruit, you’ve got about 2 seconds to sh%$ me a canteen!  Do it now!”  Of course, this guy didn’t have another canteen and couldn’t produce one under any circumstance.  However, to see this guy turn around and manically start digging through his sea bag praying to magically find a canteen in there, you knew for a fact that if it was physically possible for this guy to actually squat down and sh%$ out a canteen, he would gladly do it in a heartbeat!

All Glory is Fleeting

That was a long story (probably too long) to make the point that we have reached the point with Greece where it is no longer practical to pretend there is another canteen for them to find.  There is not.  The current Greek debt is dead money walking.  Anyone with this debt on its’ balance sheet at par or anywhere close to par is fooling themselves, their investors and analysts who think their balance sheet has any semblance of reality in it.  The discussion in Europe needs to be practical and needs to focus on how they are going to backstop their banks and the global financial system WHEN Greece defaults, not if.  After all, the whole problem with Greece has never really been about Greece, it’s about the leverage the large banks have to Greek debt. 

Blow up the debt, you blow up the banks.  Blow up the banks, you blow up the $700tr derivatives market.  Blow up the $700tr derivatives market and the world we’ve known since Bretton Woods changes forever.  It’s the same thing that had Hank Paulson corralling senior members of Congress into a wood-paneled room telling them that if he doesn’t get TARP the world will end.  He was wrong then and the fear-mongers in Europe are wrong now.  Let the banks blow up, let the equity holders get wiped out and the debt holders take haircuts.  Guess what?  The sun will continue to rise.  Sensible, solvent players will move in to pick up the pieces and the real business of healing a horribly broken economy can finally begin but not one second before we force real capitalism down the throats of the current crop of pseudo-capitalists running the world.

We’ve had a nice run as the world’s super power.  Almost 66 years at the top of the world isn’t too shabby.  And no matter what happens during the next few years that would see the US knocked off its perch as sole super power, we will still be an economically important, vital member of the global community.  The sooner we acknowledge that the current economic system, that we in the US sit firmly on top of, is broken and needs massive, perhaps even painful fixing, the sooner we can get back to being a great country.  In the meantime, the Bernank will tell you how he plans on extending the bad system at 2:15pm.  Enjoy.

Cheers,

Brian

* Fator Securities LLC, Member FINRA/SIPC, is a U.S. entity and a member of the Fator group of companies in Brazil. The comments below are from Brian Rogers, who is employed by Fator Securities (Brian’s opinions are his own and do not constitute the opinions of Fator Securities or the Fator group of companies).

Fator Securities LLC is not affiliated with Zero Hedge or any third party mentioned in this communication; nor is Fator Securities LLC responsible for content on third party websites referred to in this communication.

This material was not prepared by Fator Securities LLC. U.S. Persons seeking further information must contact Fator Securities LLC in New York at (646) 205-1160. This material shall not constitute an offer to sell or the solicitation of any offer to buy (may only be made at the time qualified participants are in receipt of the requisite documentation, e.g., confidential private offering memorandum describing the offering, related subscription agreement, etc.). Securities shall not be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful or until all applicable regulatory or legal requirements of such jurisdictions have been satisfied. This material is not intended for general public use or distribution and is intended for distribution only to appropriate investors. The opinions contained herein are based on personal judgments and estimates and are, therefore, subject to revision. Past performances are not indicative of future results.

 

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Wed, 09/21/2011 - 13:49 | 1693346 SumSUN
SumSUN's picture

Bought 2 silver eagles yesterday :)

Wed, 09/21/2011 - 13:55 | 1693373 SGS
SGS's picture

FUCK THAT! Let'em PRINT!  Better for us conspiracy silver addicts...!

Wed, 09/21/2011 - 13:57 | 1693383 kito
kito's picture

correct me if im wrong, but doesnt debt destruction create a deflationary environment, which would lead to the freefall of our gold and silver holdings?

Wed, 09/21/2011 - 14:00 | 1693397 SeverinSlade
SeverinSlade's picture

Unless the entire currency system fails due to being 100 percent fiat.

That's the way it's going to play out.  The world will lose total confidence in paper money.  It's a mathematical certainty at this point.

Wed, 09/21/2011 - 15:18 | 1693933 theotheri
theotheri's picture

>>Only precious metals will escape this imbalance accumulation led madness.<<

 

Not even close.  PM's have run up to heaven so fast that they will come crashing back to earth right along with the US $. 

 

The Fed is not just trying to save the banks- they're trying to save all the US manfucaturers, ie massive employers, by making their domestic products more competitive.  So while we may bemoan the higher cost of superior imported cars, swiss chocolate, Samsung TV and German appliances, it is ultimately better for the USA for if it's population buys local goods and services.  

Not everything revolves around the banks, sorry to disappoint you Tyler Hedgehog.  Just because Wall Street fired your ass doesn't mean the whole system is corrupt. 

 

Gold is headed back below $1000/oz people.  You've been warned...

Wed, 09/21/2011 - 18:49 | 1694913 data_monkey
data_monkey's picture

Gold is headed back below $1000/oz people. You've been warned...

SWEET!

Wed, 09/21/2011 - 19:31 | 1695022 nope-1004
nope-1004's picture

I've been warned?  By who?  A white collar criminal?

Hmmm.... let's see.  JPY intervention, check.  CHF intervention, check.  GBP intervention, check.  USD intervention, check.  That leaves.... what?  Canada?  China?  Brazil?  Russia?  Get real.

I say we all sell our PM's and buy buttons.  We've been warned.  Buy buttons ppl..... there is going to be a button ETF out soon, symbol YBW.  Came from a Yellow-Bellied-Wallstreeter claiming You've-Been-Warned.

Fool.

 

Wed, 09/21/2011 - 19:45 | 1695058 Hearst
Hearst's picture

Buttons that's funny.

Wed, 09/21/2011 - 20:01 | 1695113 candyman
candyman's picture

My dad lived in the woods for years during the war and lived on buttons. My grandmother melted the gold they had into buttons and sewed them into their clothing. When they needed money they ripped them off. Cash couldn't buy a month old potato.

Wed, 09/21/2011 - 20:18 | 1695153 Yamaha
Yamaha's picture

Understand.....

Wed, 09/21/2011 - 19:34 | 1695031 fdisk
fdisk's picture

It is sweet, if you'll still have your job and money to buy it.
Usually when everything collapse people spending time in their
bathrooms trowing up 24/7, no time to think about GOLD..

Wed, 09/21/2011 - 18:52 | 1694924 NoTTD
NoTTD's picture

If it does, I'll still be up 300%.  How'd your equities do over the last ten years?  Buy, buy, buy!!

Wed, 09/21/2011 - 19:12 | 1694974 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Gold will never see the $1,000 light of day again...ever.

Wed, 09/21/2011 - 19:55 | 1695086 eisley79
eisley79's picture

sure it will :D, just not in federal reserve notes...;)

Wed, 09/21/2011 - 19:30 | 1695016 d00daa
d00daa's picture

and you just got your longs torched today, didn't you?  don't expect to see your monkey ass around here for a while.

ps - gold is approaching 1800 again....  fantastic call.

Wed, 09/21/2011 - 19:32 | 1695025 nmewn
nmewn's picture

"Gold is headed back below $1000/oz people.  You've been warned..."

So you're sayin we really do have a chance of paying off a 17 trillion dollar debt with only 58% paying anything toward it?

Excellent!...can the other 42% just put it on their EBT card?

Wed, 09/21/2011 - 20:21 | 1695160 topcallingtroll
topcallingtroll's picture

Ad hominem is uncalled for here.

That is one purpose of anonymity, so that we focus on the message and not the messenger. I dont care if one of the Tylers sucked dicks in a Turkish prison, or if he is a convicted child molester. I focus on the argument.

If this is the same tyler who earlier claimed that qe3 was going to lead to hyperinflation and that markets arent reflective of current available information then he has become more widely read himself. Tyler isnt perfect. Hehe..Me and Smailes battled them all by saying the end of qe3 was priced in before it ended, while the populist Tyler argued that qe3 would lead to hyperinflation and later that the end of qe3 would lead to rising rates. I dont care which Tyler got fired. I dont care which one got in trouble with the SEC. Right or wrong it is the argument that is important not any attempt to deflect the argument with ad hominem attacks.

Wed, 09/21/2011 - 20:40 | 1695210 New_Meat
New_Meat's picture

tct-a greenie on ya

Thu, 09/22/2011 - 12:16 | 1697423 theotheri
theotheri's picture

Tyler Hedgehog is a collective gold monkey pusher attempting to shove the overbought gold trade down the throats of the unsuspecting dimwits that frequent this site.  Sorry suckers, your hedge is being trimmed royally but the real safe haven- the mighty US DOLLAR.

And for the record, my holdings are about 95% prime real estate, unlevered, and 5% cash.  You can torch my total equity holdings today and my great grandchildren wouldn't notice.

 

 

Wed, 09/21/2011 - 14:00 | 1693400 depression
depression's picture

Extend and Pretend 3.0

This isn't even close to over.

Fear not, keep accumulating.

Wed, 09/21/2011 - 18:54 | 1694932 Yamaha
Yamaha's picture

Me, I have not had this much fun since my dog died in 1989!

Wed, 09/21/2011 - 14:04 | 1693422 GenX Investor
GenX Investor's picture

Yes, deflation is what is really occurring, with a simultaneous moderate run up in commodities due to money hungry traders. But ultimately the Fed is pushing on a string.  There are certain inconvenient truths, such as all debts must be repaid one way or another, incentives matter, and there is no such thing as a free lunch.

Wed, 09/21/2011 - 19:20 | 1694994 Absalon
Absalon's picture

 "There are certain inconvenient truths, such as all debts must be repaid one way or another"

 

The inconveniet truth is that debts do not have to be repaid and the public will murder a thousand creditors before it lets ten million debtors starve in the streets.

 

People on here keep posting as though societies will destroy themselves for the sake of paying off a minority who are holding debt instruments - that is not going to happen.

Wed, 09/21/2011 - 19:48 | 1695066 topcallingtroll
topcallingtroll's picture

You dont know enough yet to post.

All debts are repaid one way or another. Either the creditor loses his money when the borrower doesnt pay, or the debtor pays his debt off.

No one here has ever believed that all debts will be repaid soley by the borrower. Many debts are going to be paid by the creditor as he loses his money to the borrower. Debt cancellation is debt repayment by the creditor.

You look like a fool absalon if you dont understand the language used by financial and economic types who hang out here. Please read more and dont post stuff that shows you do not understand what it means to say "all debt will be repaid one way or another."

There are two ways debt is resolved, by creditor losing money or debtor paying off loan.

Wed, 09/21/2011 - 19:59 | 1695101 eisley79
eisley79's picture

"Debt cancellation is debt repayment by the creditor."

lol, not its not, thats like saying two gay people living in a commited relationship to the exclusion of all others is "marriage". 

Just cause you call it by a word doesnt make it so... Writing off debt, is WRITING OFF DEBT.

Also, they debtors, if they control the money of their debt, can change the value of the currency, slowly, or very quickly (repeg).  Repaying a debt in a new currency with a new made up value, is again not the same as actually repaying a debt.

Though you did sort your self out by the end "There are two ways debt is resolved".

All debts are resolved, but not all debts are repaid.

Wed, 09/21/2011 - 20:40 | 1695212 topcallingtroll
topcallingtroll's picture

I agree with you, but we all knew what he meant. Informally it is expressed debt is repaid one way or another.

Inflating the money supply is writing off debt in real terms, velocity remaining constant. The creditor "pays" even in that situation.

Wed, 09/21/2011 - 19:52 | 1695076 EscapeKey
EscapeKey's picture

Yep, as Bernanke has repeatedly warned, we're living through deflation - which is why he recently took the opportunity to tell us that the inflation (which doesn't exist) is now on its way down.

But of course that's not questionable at all. Ben seems to be able to tell one lie after another, and never get called on it by the MSM.

Wed, 09/21/2011 - 20:14 | 1695145 Yamaha
Yamaha's picture

I'm really sorry.....know body takes a girl serious. I want you to know that I DO....want to get laid?

Wed, 09/21/2011 - 20:19 | 1695158 EscapeKey
EscapeKey's picture

Google "Anna Chapman".

Wed, 09/21/2011 - 14:43 | 1693570 Whalley World
Whalley World's picture

Deflation is gold positive, look back to the Great Depression where gold went from $20 to $35.

Look up Exters inverted debt pyramid, and see what comes out on top, er on bottom in this inverted case.

Wed, 09/21/2011 - 20:51 | 1695241 GeneH3
GeneH3's picture

Gold went up in 1933 because the price was driven up by the U.S. Treasury and it's proxies. The $2.8 billion profit booked from confiscation at $20/ounce and compensation at $35 was used as seed money for the newly created Exchange Stabilization Fund (unauditable to this day). Deflation is in fact gold positive nevertheless -- relative to goods. It will buy more. That does not necessarily mean it will be priced higher in fiat. But who cares about fiat anyway. If gold is money, why place an undefined medium of exchange (fiat), which can easily distort value, between gold (money) and goods? Fiat should be, if anything, not something considered a thing of value, but only a fleeting convenience for exchanging gold money for goods. That convenience was not necessary between 1879 and 1933 as gold money was directly exchangeable for goods and the paper stuff was superfluous. The clowns in Washington and Wall Street have so screwed up the system of value and so brainwashed J6P that too most people in the U.S. understand financial value only in terms of the paper that the Fed prints with abandon.

Wed, 09/21/2011 - 14:52 | 1693692 HitTheFan
HitTheFan's picture

You are correct that debt destruction creates a deflationary environment. However, gold will not necessarily fall, but silver probably would.

But, debt destruction is unlikely, as the Fed/US Gov will keep buying up any and all bad debts to 'save the system'. Eventually leading to the destruction of the system via hyperinflation.

Wed, 09/21/2011 - 16:35 | 1694337 jekyll island
jekyll island's picture

Cash is king in a deflationary environment.  PMs will go down but will hold value relative to falling prices and will lead the charge on the upside recovery.  It's too risky to divest of PMs anticipating deflation.   The government will do anything to avoid it and print FRN$, so we will probably have deflation in some sectors (housing) and inflation in others (food, energy) and eventual hyperinflation.  PMs are the best protection against hyperinflation, and they will do OK in a deflationary environment.  Best case scenario is to have some cash to hedge against deflation and continue to hold PMs for insurance against fiat currency destruction.  

Wed, 09/21/2011 - 20:33 | 1695188 Cole Younger
Cole Younger's picture

"Cash is king in a deflationary environment." I agree however, I don't think the fed will allow a deflationary enviroment for to long.

Wed, 09/21/2011 - 20:56 | 1695255 FreedomGuy
FreedomGuy's picture

Excellent question, Kito! Hyperinflation is also a form of wealth and money destruction. It is the form favored by 100% of debtor nations because all debt is erased in the process. When you can print a 100 trillion dollar note like Zimbabwe you can pay your national debt and fully fund all social programs with a single piece of paper.

This is when gold and silver return to real money status. Actually bottles of whiskey and other things will become a sort of money too. This is when the PM savers win and the fiat money insurance policy you bought when you bought your PMs pays off...big! And you are alive to collect! How much it buys depends on how bad things are but it will be big as none is in circulation.

I would also say that even in a deflationary environment PMs can do well in the sense they still have good purchasing power. A one ounce eagle could still buy a lot in the Great Depression before confiscation. In a deflationary environment all goods and service drop in price too. Your mining stocks might take a beating but you should still be ok.

Wed, 09/21/2011 - 13:58 | 1693389 BrocilyBeef
BrocilyBeef's picture

I want see 38$ silver

Wed, 09/21/2011 - 14:25 | 1693512 Inibo E. Exibo
Inibo E. Exibo's picture

I'm kind of hoping it gets below 30 long enough for me to write a really big check.

Wed, 09/21/2011 - 15:04 | 1693827 BrocilyBeef
BrocilyBeef's picture

I doubt it. When do you see your chance?

Wed, 09/21/2011 - 19:45 | 1695005 Prometheus418
Prometheus418's picture

That's assuming you can.

I'm not going to go on about a shortage, as I'm not convinced there is one yet- but I do know one thing for sure... when the price goes up, the coin dealers seem to have a half decent selection, but when the dips roll through, they seem to be either closed or stocking no-name 90% rounds now.

Can't say I blame them really, but what it tells me is that the guys whose livelihoods depend on trading PMs all day, every day, are convinced that the price is not breaking out to the downside for long, if at all.  If I were to see ASEs in the case near spot after a $5/oz drop, I might start to get worried- but as long as it's oddball sterling comemmorative coins selling at a premium, that's telling me that the guy who has spent decades watching this market is betting he can sell the good stuff later for an even higher price.  

Of course, if you're willing to pay a premium on AMPEX or the like, you should have no problem.  Slim pickings seem to be for the big contract buyers or the face-to-face physical buyers.

Also, as kind of an oddball addendum- got an e-mail from eBay a couple of days ago informing me that my couple hundred dollars in "eBay bucks" could not be used in the bullion center.  Kind of irritated me, as I earned 'em there. 

Wed, 09/21/2011 - 21:00 | 1695271 FreedomGuy
FreedomGuy's picture

It may go back to $50 while you wait. Seems like the neighborhood of $40 is the baseline value now. It sells at a nice low markup at least...like 99 cents over spot at times.

Wed, 09/21/2011 - 18:50 | 1694919 YesWeKahn
YesWeKahn's picture

Can you eat that?

Wed, 09/21/2011 - 20:06 | 1695125 Duffminster
Duffminster's picture

Good move.  Hold em. 

 

The price of gold is proportional to the net outstanding global sovereign and private debt levels. If the economy has a significant downside contraction then tax revenues will drop like a rock and debt levels will sky rocket

Wed, 09/21/2011 - 13:54 | 1693347 GeneMarchbanks
GeneMarchbanks's picture

White Flags all around! Just write a couple of sentences including words like "chaos" "disaster" "mass impoverishment" "NWO" is all that is needed.

Bring the pain...

Wed, 09/21/2011 - 13:51 | 1693353 Irish66
Irish66's picture

sad day

Wed, 09/21/2011 - 14:03 | 1693420 Oracle of Kypseli
Oracle of Kypseli's picture

Sad but necessary. We need a rebirth, a reboot. we need a fresh start. No way we can continue that way. We need to pulverize politicians and banksters so that our children can have a better future.

Let's just do it. 

Wed, 09/21/2011 - 14:17 | 1693490 LooseLee
LooseLee's picture

....as well as the traitors (e.g. traders) and so-called investors who worship at the altar of the Fed demanding a crony capitalist fascist/socialist stimulus or bailout. Until we can weed out these bulltard wards of the state (corporations included) and allow the weak to fail as they should have years ago, our children and grandchildren will be saddled with the debts of a wreckless elite that have brought about this fragmentation of society. Unless and until a truly free economy based on capitalist principle and founded on the rule of law is established, there can be no real prosperity in the world and our offspring will continue to slave for TPTB. Unfortunately the Moneychanger in Chief, Ben Bernamke, has no 'soul' (and I speak not of the Christian dogma here) and will continue to placate the dregs of society with his monetary policies that will eventually collapse the world economy...

Wed, 09/21/2011 - 19:42 | 1695050 espirit
espirit's picture

There's always a market somewhere, even if it's a black market.

Wed, 09/21/2011 - 14:52 | 1693686 GottaBKiddn
GottaBKiddn's picture

No blow-ups without a Fema Camp for all Banksters.

Wed, 09/21/2011 - 20:37 | 1695204 lynnybee
lynnybee's picture

 pulverize politicians and banksters so that our children can have a better future.     .....   yup.    that's the correct answer & i'm finally ready mentally for it ...... bring it on .    

Wed, 09/21/2011 - 13:52 | 1693354 hunglow
hunglow's picture

Enjoy the suck.

Wed, 09/21/2011 - 13:53 | 1693355 TradingJoe
TradingJoe's picture

I am poised to enjoy it Brian, I am one of those "sensitive" investors you know!

Wed, 09/21/2011 - 13:53 | 1693357 surfwon
surfwon's picture

I hope all those treasonous bastards go to butt sex jail.........

Wed, 09/21/2011 - 20:21 | 1695161 Yamaha
Yamaha's picture

Yah! With Barney Frank! Somewhere in MA or DC.........

Wed, 09/21/2011 - 20:43 | 1695225 New_Meat
New_Meat's picture

or in ME with "duuuude"

But, well, Bawney would enjoy it.

- Ned

Wed, 09/21/2011 - 13:53 | 1693360 SeverinSlade
SeverinSlade's picture

Either Bernanke announces QE3 today or he does it in an emergency Fed session in a few days/weeks when the S&P is challenging 1000.

Wed, 09/21/2011 - 14:00 | 1693402 TradingJoe
TradingJoe's picture

make that 875 ish to 950ish!

Wed, 09/21/2011 - 13:54 | 1693366 Debtless
Debtless's picture

Too bad we're not Iceland. They don't put up with bankster shit.

Wed, 09/21/2011 - 13:55 | 1693370 mirac
mirac's picture

Need to get rid of the Federal Reserve and try to go back to being a Republic-not going to happen with football on and a new season of Two and a Half Men...

Wed, 09/21/2011 - 13:57 | 1693384 SeverinSlade
SeverinSlade's picture

Don't forget every reality show on TV.

Seriously, how much reality TV does America need?  How many talent shows does America need?  Americans are becoming dumber by the second and more and more easily entertained.  Pretty soon America will resemble the movie "Idiocracy."

Wed, 09/21/2011 - 14:01 | 1693406 TradingJoe
TradingJoe's picture

Good Point!

Wed, 09/21/2011 - 14:01 | 1693408 mirac
mirac's picture

I have trouble facing todays reality...but I might get rich buying Storage lockers and Dumpster diving

Wed, 09/21/2011 - 14:08 | 1693445 SilverRhino
SilverRhino's picture

Soon??? Try already.  

Wed, 09/21/2011 - 14:10 | 1693455 Prometheus the ...
Prometheus the Jester's picture

I have reached the old curmudgeon stage of life. When I flip around the 500 channel wasteland on my TV, I see stuff like Dancing with the Stars, the Kardasians, pawnshops heros, Jersey this, Housewives that. Why on earth does anyone watch this shit. What next? A show about illegal alien janitors dodging ICE agents while they scrub the toilets of corporate America?. How about a show where 80 IQ schoolboys flip burgers at the burger hut while picking their noses and giving each other wedgies  How about a show where transvestite hookers work the glory holes in San Francisco for crack money?  Wait a minute that last one might actually be kind of interesting in a sick sort of way.

Wed, 09/21/2011 - 14:20 | 1693503 flattrader
flattrader's picture

I understand what you're saying.  Reality TV was a cancerous outgrowth of the Hollywood writer's strike of several years ago.

Some major and cable networks now realize the appetite for this shit is waning.  Occasionally you now get a few winners like "Raising Hope."

Wed, 09/21/2011 - 20:02 | 1695117 fuu
fuu's picture

I always blamed MtV for "The Real World".

Wed, 09/21/2011 - 19:50 | 1695070 Prometheus418
Prometheus418's picture

TV always sucked- it's a matter of not watching at all, or at least choosing carefully.  Though truth be told, my favorite things to see in the last five or ten years were reality shows.  There was a good doomer one on Discovery called "The colony", where I picked up the idea of running ozone through filtered water to kill bacteria, and "How it's made" has been a favorite of mine.

Other than that you're right.

So, on to other things- seeing as how you're the other fire thief in these parts, what do those ellipses stand for?

Wed, 09/21/2011 - 20:07 | 1695122 xtop23
xtop23's picture

Personally I dont find the overabundance of reality TV quite as startling and sad as the underabundance of quality news and reporting alternatives.

The "news" has steadily become more and more childlike and irrelevent as it cowtows more and more to special interests and political pressure.

All I can say is THANK GOD for the internet or else the few people that are awake in this country would have no fucking idea what the Hell is going on.

Your TV set is a hollow shell that sucks out your will and freedom of choice. Shut that fucker OFF.

PS- I came home the other night after work and found the wife watching Step Up 3 .... I thought I was going to puke.

At least shes hot.

Wed, 09/21/2011 - 14:15 | 1693481 flattrader
flattrader's picture

Reality TV has what Americans crave...Electrolytes

Oh wait, that Brawndo and plants...

 

Wed, 09/21/2011 - 15:24 | 1693970 LooseLee
LooseLee's picture

Soon? I observed this growing up in the late 60's/early 70's. Only then it wasn't reality tv, but public education and the farce that is 'preparation for entering the workforce'....Now, we not only have that 60's/70's problem magnified today but also the reality and 'entetainment escape' that is the basis of modern society. Nowadays people dread 'thinking' and prefer to numb their brain with entertainment and other modern distractions, drugs, what have you.....

Wed, 09/21/2011 - 13:55 | 1693374 1835jackson
1835jackson's picture

The Bernank is a bearded bastard.

Wed, 09/21/2011 - 13:57 | 1693381 GeneMarchbanks
GeneMarchbanks's picture

Yes he is pal, yes he is.... (sigh)

Wed, 09/21/2011 - 14:04 | 1693424 1835jackson
1835jackson's picture

No...what I meant is...can you really trust a guy with a beard? I mean Bernank's beard is black and white for fuck sake!

Wed, 09/21/2011 - 13:56 | 1693379 Peter K
Peter K's picture

That just ain't right.  Besides, we will still be the remaining super power because we have the biggest guns.

Wed, 09/21/2011 - 13:58 | 1693388 SeverinSlade
SeverinSlade's picture

And as South Park says, the biggest penises.

The Chinese have very small penis.  Very, very small.

Wed, 09/21/2011 - 14:04 | 1693426 jdelano
jdelano's picture

It's that rationale that keeps me awake at night, bile churning in my stomach.  Fools like you with that mentality are going to reduce this country to ashes.  China has the biggest guns, bud.  Push hard enough and they will destroy the dollar overnight.  Game over.  

Wed, 09/21/2011 - 14:14 | 1693478 Peter K
Peter K's picture

Dude, don't look now, but your basement is flooding. Dohhh :))))

Wed, 09/21/2011 - 20:13 | 1695144 xtop23
xtop23's picture

 They have over a trillion and a half in treasuries. If they wanted to just say ,screw it all let the chips fall where they may ,they could dump that onto the market and put us in the Stone Age.

 Its mutual destruction but dont think for one second that the whole American exceptionalism viewpoint is anything but propaganda.

Wed, 09/21/2011 - 13:58 | 1693386 hunglow
hunglow's picture

DC this is Houston, engines are started, make-up is on, nose hair is trimmed (kinda).   It's show time! 

Wed, 09/21/2011 - 13:58 | 1693390 traditionalfunds
traditionalfunds's picture

Author is wrong. That will be confirmed in 20 minutes.

Bernanke is keeping powder dry for when crisis really gets bad. If he flip-flops on his message that fiscal authorities need to act not the Fed he loses credibiliy.

 

 

 

Wed, 09/21/2011 - 14:02 | 1693416 SeverinSlade
SeverinSlade's picture

I agree.  I'm leaning more towards some emergency Fed session.  Bernanke almost surely prefers to be thought of as "the savior" rather than "the devil."

Wed, 09/21/2011 - 14:05 | 1693434 jdelano
jdelano's picture

yup and yup.  

Wed, 09/21/2011 - 15:26 | 1693990 LooseLee
LooseLee's picture

100% spot-on! In hindsight, great insight!

Wed, 09/21/2011 - 13:59 | 1693391 economicfreefall
economicfreefall's picture

It's pretty much a waste of time trying to figure out where the markets are heading, since it all boils down to one news release. One thing's clear though: unless the FOMC brings interest rates up a gazillion basis points and suddenly starts selling its worthless assets and at the same time manages to find buyers of that worthless balance sheet, not much that comes out of Bernanke's mouth today should have a negative impact on the precious metals. At least not if one can look past the immediate action.

http://www.economicfreefall.com/2011/09/waiting-for-santa.html

Wed, 09/21/2011 - 13:59 | 1693392 Seasmoke
Seasmoke's picture

one just needs to take a trip to Disney World to see how man fat lazy people are riding around in scooters........its sad, funny, disgusting and scary.....USA IS FINISHED

Wed, 09/21/2011 - 14:04 | 1693410 dwdollar
dwdollar's picture

Some of them are so enormous they don't need motors on their scooters. All they have to do is raise their arms and the wind catches their sagging fat and away they go! I doubt even the Romans were this fucked.

Wed, 09/21/2011 - 13:59 | 1693394 youngman
youngman's picture

I found it....the other canteen.....

Wed, 09/21/2011 - 19:21 | 1694995 Calmyourself
Calmyourself's picture

Great, Attentch hut, clean the shit of that canteen troop..

Wed, 09/21/2011 - 14:01 | 1693395 GeorgeHayduke
GeorgeHayduke's picture

The banksters have done a great job of scaring the serfs into thinking their oligarchy is the only way the world operates. Most people cannot imagine anything else.

As I see it, one of the biggest problem with the collapse of our currently corrupt system is that much money and resources have been put into the wrong things and places. Possibly even whole cities, and what remains of our industry, are located in the wrong places due to the current bankster-owned system. That means a collapse of the system and subsequent resettling of people and resources to a more efficient and natural location could be quite devastating to many people and places.

Of course I could be wrong and these could just be the musings of an aging geography major. Time will tell.

Wed, 09/21/2011 - 19:40 | 1695046 JLee2027
JLee2027's picture

There will be a lot of very large vacant, tomb-like Federal buildings, especially in Washington DC.  I smell an opportunity for the ghetto lords.

Wed, 09/21/2011 - 14:00 | 1693401 imapopulistnow
imapopulistnow's picture

We do't need no feaken jobs.

Wed, 09/21/2011 - 14:01 | 1693405 Manthong
Manthong's picture

Boot camp haircuts bitchez!

Let's see all those bald pimply heads NOW! 

Wed, 09/21/2011 - 14:05 | 1693433 Peter K
Peter K's picture

Speaking of Boot Camp: enjoy

http://www.youtube.com/watch?v=aUc62jD-G0o

MCRD SD

Wed, 09/21/2011 - 14:02 | 1693409 Mrs Kensington
Mrs Kensington's picture

In spite of the seeming naivety (clearly an attempt to position it as as suggestion versus a mandate in respect to the policy of non-interference) of the letter from the GOP guys to Bernank, do not underestimate the iceberg of which it is the tip, and the court cases and demise of the Fed to be faced starting....well... November 2012.

Wed, 09/21/2011 - 14:04 | 1693413 newworldorder
newworldorder's picture

As much as I dislike to say it, Bennie and Jets will maintain the status quo, untill he no longer can. Congress wants it that way and so do the clueless millions of sheeple all over the US.

Pain avoidance is the only thing that counts.

Wed, 09/21/2011 - 14:02 | 1693415 Dr. Engali
Dr. Engali's picture

Ben turn around and shit me some money. Preferrably in stacks of Ben Franklins

Wed, 09/21/2011 - 14:03 | 1693421 junkyardjack
junkyardjack's picture

I'm just hoping that Zero Hedge doesn't crash at 2:15.  I need my news!

Wed, 09/21/2011 - 14:10 | 1693453 jdelano
jdelano's picture

was thinking this morning that the tylers should have a bunch of mirror sites set up and a way of communicating to everyone where to look for them if Zero Hedge goes down...  With all the attention its been getting lately, wouldn't be surprised to see a headline, 'ZH blog shut down for alleged insider trading violations'

Wed, 09/21/2011 - 14:05 | 1693428 vegas
vegas's picture

Until revolution comes in the US, where most Amerikans are too dumb to notice [unless the NFL is cancelled], and the banksters like the Bernank get literally strung up, nothing will change. Ever.

Wed, 09/21/2011 - 14:05 | 1693429 CitizenPete
CitizenPete's picture

spot on.

Wed, 09/21/2011 - 14:05 | 1693432 LeonardoFibonacci
LeonardoFibonacci's picture

Benny's ass will be the next ATM machine.  Oh shit, it's out of order!!!

Wed, 09/21/2011 - 14:05 | 1693435 RobotTrader
RobotTrader's picture

 

 

15 more minutes until the "King's Speech"

Wed, 09/21/2011 - 14:11 | 1693461 Smiddywesson
Smiddywesson's picture

This is WAY past the point of no return.  Either the Fed and the ECB successfully pull off a reset or the whole thing collapses, but the old system is over.  Forget about fixing it

Wed, 09/21/2011 - 14:13 | 1693471 viv_savage
viv_savage's picture

"The sun will continue to rise. Sensible, solvent players will move in to pick up the pieces and the real business of healing a horribly broken economy can finally begin but not one second before we force real capitalism down the throats of the current crop of pseudo-capitalists running the world."

 

I believe this as well.

Though I do think the inevitable transition will be a very rough ride, I will say something similar as quoted above if I ever feel like explaining that I'm not all Doom-and-Gloom to friends and family. I see a light at the end of the tunnel - it's got a golden hue.

I also believe that it will be only physical holders that will be 'solvent' enough to pick up the pieces after the $IMFS system is past-tense.

Wed, 09/21/2011 - 20:55 | 1695247 Prometheus418
Prometheus418's picture

Even as a physical (silver) holder, I'm calling BS on the last line.

Capital makes most things easier, but wealth generated in the last system does not equate to the ability to rebuild a damn thing.  Any idiot with some ponzi money can buy some pm's, but that does not mean they can actually do anything beyond spend money.

PM hoarding is a symptom- not a primary mover.  It's kind of like the Hitchhiker's Guide to the Galaxy's definition of a towel.

"... a towel has immense psychological value. For some reason, if a strag (strag: nonhitchhiker) discovers that a hitchhiker has his towel with him, he will automatically assume that he is also in possession of a toothbrush, washcloth, soap, tin of biscuits, flask, compass, map, ball of string, gnat spray, wet-weather gear, space suit etc., etc. Furthermore, the strag will then happily lend the hitchhiker any of these or a dozen other items that the hitchhiker might accidentally have "lost". What the strag will think is that any man who can hitch the length and breadth of the galaxy, rough it, slum it, struggle against terrible odds, win through, and still knows where his towel is, is clearly a man to be reckoned with."

Or in other words, if you're a man who can drag his ass through the smoke and the thunder, over razorblades and broken glass, and still- when you get to my door, can offer to pay for a meal with a silver coin- you're a man I will trade with.  Hell, I'll give you food, a job and a place to hang your hat, if I can.

OTHO, if you arrive in a Lexas with pristine monster box of ASEs- well, that will be your day to run, piggy.

Those who can and do pick up the pieces will come from the most unlikely of places, if for no other reason that the last 40 years have corrupted the average person's sense of what value really is.

Wed, 09/21/2011 - 14:13 | 1693473 Jumbotron
Jumbotron's picture

This was amongst the best posts ever on ZeroHedge.

With this one small caveat...

The sooner we acknowledge that the current economic system, that we in the US sit firmly on top of, is broken and needs massive, perhaps even painful fixing, the sooner we can get back to being a great country.

Don't mean to play semantics, but you can either be a great country or a good one.  You cannot be both.

Alexander Hamilton wanted the US to be a GREAT country..... an Empire.  One that ruled its own destiny just like every great power that ever existed controlled its monetary fate by the control and issuance of its own currency though a national bank or some other form of national financial insitution....(even if it were the king's coffers)

Having indepedence for the states was ok...but control of its finances state by state...hell no.

He had good intentions....he feared for the safety of the country.  He thought that the formation of a national bank would help America become an empire such as the former mother country of England but with the principles of freedom and liberty.  He thought America could be GOOD as well as GREAT.

But his arch-nemesis Thomas Jefferson knew that eventually the same human corruption that plagues everyone would congeal not only in government but in the most important of all human institutions ever conceived...that being the banks.  Empires....GREAT countries do not exist without financial power first.  Banks create that power.....they nurture it....they can also take an Empire down.  That's why Jefferson thought of them and the corporations that spring up from the financing of banks as more dangerous to America than standing armies.

If we let the system blow up and then rebuild it again without seriously considering what form it takes that is different...more diffuse...less centralized...much less debt based.....and then thinking it will be different....is simply an exercise in delusion and will only set the stage for anarchy and the inevitable rise of the autocrat.

 

Wed, 09/21/2011 - 14:21 | 1693506 Texas Ginslinger
Texas Ginslinger's picture

Interesting story about the Marine inspection.

Only the physical (canteen) mattered.  

The paper (chit) meant nothing.

Wed, 09/21/2011 - 20:20 | 1695154 newworldorder
newworldorder's picture

From someone who experienced lack of water, 2 canteens may save your ass, the paper showing why you dont have one, which covers your ass, is worthless.

Wed, 09/21/2011 - 20:59 | 1695268 Prometheus418
Prometheus418's picture

Can I take that to mean that you're no longer intending to wait until silver hits $2/oz to buy as much as you like?

Wed, 09/21/2011 - 14:39 | 1693522 NotApplicable
NotApplicable's picture

Word to the wise, don't wear glasses with photo-gray (or tinted) lenses to boot camp. Wiser yet, don't be the only one in your platoon to have their military issued glasses lost when the day comes to pick them up.

Otherwise you stand out like a sore thumb. I mean really stand out. It took no time at all for the 'heavy' DI to pick me out and start calling me Belushi (for being a Blues Brother).

One benefit though, I can positively pick myself out in more photos in our 'yearbook' than anyone, even amongst photos showing the over 200 aspiring Jarheads in our company. I also got good at thrashing, anytime the heavy got bored.

Semper Gumbious (Always Flexible)

Wed, 09/21/2011 - 18:04 | 1694742 New_Meat
New_Meat's picture

"flexibility is the key to indecision"

Wed, 09/21/2011 - 14:41 | 1693538 svc101
svc101's picture

Someone kindly explain to me how they have now coupled the ES to GLD when they should be inverses?

Wed, 09/21/2011 - 14:43 | 1693566 NotApplicable
NotApplicable's picture

This is finance, not logic. Welcome to the Mark to Unicorn universe.

Wed, 09/21/2011 - 14:46 | 1693614 falak pema
falak pema's picture

sic gloria transit...rhymes with shit furia slams it...or when the shitta hits the ventilata...

Wed, 09/21/2011 - 14:49 | 1693639 Sequitur
Sequitur's picture

Tylers:

Your opening salvo on this post is spot-on. That is the entire game in one succinct paragraph. Enough with the leverage and notional value bullshit so that $1 = $10,000 in notional, all for the sole purpose of inflating banker bonuses. This entire fucking charade is about banker bonuses. Blow it to smithereens.

SHUT IT DOWN.

Wed, 09/21/2011 - 14:50 | 1693662 nantucket
nantucket's picture

been saying it since 2009, the total losses could have been easily covered by the capital of the affected firms...it would have wiped out the equity holders and then haircut the bondholders by 20-60% (depending on the firm), but the losses would have been borne by the owners' capital....but TPTB decided to keep bondholders whole and force the losses onto you and me...the taxpayer.  I never signed up for that effin shyte. 

 

and TPTB still defend the bondholders and thrust the losses upon the taxpayers.  it's flat wrong and totally backward.

Wed, 09/21/2011 - 14:56 | 1693745 robertocarlos
robertocarlos's picture

Amen.

Wed, 09/21/2011 - 15:07 | 1693851 Siggy
Siggy's picture

Sic transit gloria mundi..

Wed, 09/21/2011 - 15:18 | 1693930 slewie the pi-rat
slewie the pi-rat's picture

LOL!!!: Let the banks blow up, let the equity holders get wiped out and the debt holders take haircuts. Guess what? The sun will continue to rise.

...almost my exact words!
...from last may or june...

Wed, 09/21/2011 - 15:27 | 1693995 besnook
besnook's picture

there will be war to determine who gets to pick the carcass first. the war will be started by the carcass in it's death throes.

Wed, 09/21/2011 - 15:51 | 1694129 hooligan2009
hooligan2009's picture

bravo ...more more more...reality bytes ..tell it how it is ..i want more..now..who will join a movemenet filled with people of this attitude to actually admit that if something looks like a wreck drives (or not) like a wreck and has the value of a wreck..it is in fact a wreck. I want more of this quality and realism and I want it now. I want "yes we can" to be de-obama'ed and put in mainstream. I want a vote that says we either allow the mansions, cars third and fourth homes of corrupt investment bankers who have gamed the tax payers for thrirty years to be treated as drug lords with their possessions confiscated and then we let the whole crumbling fucked up edifice that goes for our current system to be written off so we start again...or we start again. we can begin by removing the fed and cancelling its holdings of securities so they simply never existed. i gave this article my highest rating of only 6 other highest ratings awarded in 2 years here ( i dont rate indifference or simply interesting, only the positive possible action looking ahead).

Wed, 09/21/2011 - 16:08 | 1694216 Nobody For President
Nobody For President's picture

Brian, you were wrong about Uncle Ben doing something big - he did more or less exactly what the banksters expected, but I loved the canteen story - mebbe because I did 6 years and change Airborne/Ranger Infantry. The rest of the discourse was right on.

 

When you say: The sooner we acknowledge that the current economic system, that we in the US sit firmly on top of, is broken and needs massive, perhaps even painful fixing, the sooner we can get back to being a great country. 

 

What 'we' are we talkin' about?

All the smart guys (except me, who is dumb as a post) on ZH?

Or the really really rich and their congresspeople and senator employees?

'Cause the ZH folks are mostly aboard.

But those other folks - you know, the ones that count (sorry ZHers) - will get aboard about when hell freezes over. I truly don't believe they give a shit about 'the country', like maybe you and I do.

They only give a shit about themselves, and will prop this mother up to the (very) bitter end.

 

Meanwhile, I made a fucking bundle today being long on a leveraged bear ETF - simple minded, like me - but I did not think Uncle Ben and the FoeMacs were gonna do much - Seems to me they just kicked the can straight back to our (dysfunctional) Congress - "You do something about the economy motherfuckers, we're about out of gas."


Wed, 09/21/2011 - 17:35 | 1694601 moby1017
moby1017's picture

Well said. I pretty much say the same to friends that look at me like I'm a Conspiracy Theroist and call me a fool for pull all of my 401k funds to buy Gold and Silver. Oh well, Thanks for this website "Tyler". I read this everyday!!

 

 

Wed, 09/21/2011 - 18:00 | 1694726 New_Meat
New_Meat's picture

Hey Brian Rogers: "Good night Chesty Puller, where ever you are!" - Ned

Wed, 09/21/2011 - 18:57 | 1694936 NotApplicable
NotApplicable's picture

LOL

Been a while since I heard that one.

Wed, 09/21/2011 - 18:48 | 1694905 Young_wise_one
Young_wise_one's picture

I would have hated to see what would have happend if Ben didnt announce. The Fed has been "twisting" for a while now... just announcing it to the public thats all!

Wed, 09/21/2011 - 18:48 | 1694908 Young_wise_one
Young_wise_one's picture

I would have hated to see what would have happend if Ben didnt announce. The Fed has been "twisting" for a while now... just announcing it to the public thats all!

Wed, 09/21/2011 - 18:48 | 1694909 Young_wise_one
Young_wise_one's picture

I would have hated to see what would have happend if Ben didnt announce. The Fed has been "twisting" for a while now... just announcing it to the public thats all!

Wed, 09/21/2011 - 18:48 | 1694910 Young_wise_one
Young_wise_one's picture

I would have hated to see what would have happend if Ben didnt announce. The Fed has been "twisting" for a while now... just announcing it to the public thats all!

Wed, 09/21/2011 - 18:52 | 1694923 Sequitur
Sequitur's picture

I wish you would have waited for the site to process your comment x 4.

Wed, 09/21/2011 - 18:49 | 1694915 Absalon
Absalon's picture

Nihilism is for the young, the immature, the ignorant.

Wed, 09/21/2011 - 19:04 | 1694955 jdelano
jdelano's picture

And Tolstoy is for those who can't bear to face the crass realities of Dostoevsky

Wed, 09/21/2011 - 20:22 | 1695162 xtop23
xtop23's picture

And Penthouse is for those purposefully blind fucks at the SEC

Wed, 09/21/2011 - 22:05 | 1695421 Tedster
Tedster's picture

I don't want to go blind... Maybe just enough to wear glasses though..

Thu, 09/22/2011 - 05:32 | 1696047 falak pema
falak pema's picture

I would humbly submit that the realities of war and man's delusional self were supremely portrayed by Tolstoy in War and Peace. It was the ultimate masterpiece that blew the Napoleonic myth sky high, and Uber-alles man's hubris was laid bare for all to see. 

Dostoevsky was more intimate and more human in his portrayal. But reality was pretty crass when Moscow burnt!

Wed, 09/21/2011 - 18:59 | 1694944 tomreagan
tomreagan's picture

If the Fed wanted to end it, they would have bought PIIGS bonds. Why didnt they? Because at the end of the day they have given a 3yr free pass to risk markets. Then they say I told u so. To u congress.....prepare

Wed, 09/21/2011 - 19:03 | 1694952 NoTTD
NoTTD's picture

Default now and get it over with.  Anarchy for the USA. 

Wed, 09/21/2011 - 20:15 | 1695149 Implicit simplicit
Implicit simplicit's picture

True that. The sooner we crash, the sooner we can start picking up the pieces like a junky coming clean.

Wed, 09/21/2011 - 20:32 | 1694965 Cursive
Cursive's picture

Well said, Brain Rogers, but I don't understand how America would fall from it's perch.  This grand reset is so much about America imploding or a realignment of global powers as it is re-adjusting the power brokers who sit at the top of developed world.  For all the drama about the coming China Century or whatever, those countries that foster freedom and reward risk taking and innovation will continue to enjoy the highest standards of living.  That list doesn't include China or any of the other emergining economies on Jim O'Neil's bullshit list.

Wed, 09/21/2011 - 19:17 | 1694987 T-Bond
T-Bond's picture

If a 700T market with everyone the same way and very limited upside potential and nearly unlimited downside potential, ever gains any momentum the wrong way for any reason, no one will be able to stop it. As in tulip mania.

Wed, 09/21/2011 - 19:26 | 1695004 chump666
chump666's picture

No its pure chaos trade, expecting a rally was hopeful at best.  The sell happened early, actually on the day of the FED announcement.  All markets broke technical supports in Aug - that's a doomsday sign.  There is something brewing and it it's bad.  A liquidation trade like we just saw...not a good sign. The epicentre could be in the US again.

We may get a tail end of volatility, then just capitulation...

Wed, 09/21/2011 - 20:34 | 1695196 chump666
chump666's picture

commod FX plays such as the AUD, that smashes through 1.00 running chart against copper selling = MAJOR China crunch.  That's it.  Short sellers line up, your day has arrived...

FED can't do Sh*t

 

Wed, 09/21/2011 - 19:29 | 1695015 Caviar Emptor
Caviar Emptor's picture

I love it that some here are still angry about gold being so highly valued. And many who are just plain befuddled and confused. 

 

Wed, 09/21/2011 - 19:47 | 1695059 wolfy747400
wolfy747400's picture

I bought a few silver bars a couple of months ago. Very different to buying ETFs. There is no emotion involved. I mean I've got the bars stashed away. They are not going anywhere. They will always be worth something, and probably continue to rise in value as it's a finite resource and one thing we do as humans is consume, among other things.

So tomorrow, if the price of silver drops, I won't really care. I know i've got them for the long run. I'll probably give them away as gifts to my grandkids in 30-40 years. By then, are you saying they'll be worth less???

Resistance is futile!

Wed, 09/21/2011 - 20:08 | 1695130 Duffminster
Duffminster's picture

Operation Twist will fail to have meaningful impact on the economy and does almost nothing to help the failing US and EU bank problems with sovereign debt and “significant downside risk to the economy” is already manifesting and with the lack of further currency devaluation, any hope of Q4 export growth is DOA. After that reality sets in, Full QE3 from Ben when the global banking system begins to implode and take the nearly $1 Quadrillion derivatives market down and the world as we know it. A system in which debt is the only thing backing a currency and where debt is the only thing driving growth must eventually fail. When Nixon defaulted on the US gold obligations in 1972 the dollar became backed only by I.O.U.’s i.e. sovereign debt and debt is backed by dollars. So in essence the dollar is ultimately a promise to pay nothing.
 
Given that the European and US sovereign debt are simply not ever going to be repaid at the current value of the euro or dollar, I fully expect that in order to prevent a global financial, banking and economic meltdown that the pain will increase fairly shortly forcing the Fed to bail the banks through actual expansion of the balance sheet, which the Fed can uniquely do ad infinitum to maintain market stability. Not that it is a good thing but it is the only thing that can be done to sustain the existing banking order. The counterparties are insolvent. Solvent and strong economies know this and that is largely why they are sucking up all the Gold and have a firm bid in the physical market in the $1700 – $1800 range. This sideways chopping in the gold and silver markets are a consolidation move showing that gold is in fact becoming the new global reserve currency and that the Chinese, who are very patient and experienced with gold and silver as well as other ancient nations like India treat gold as real money even as we print it in ever larger quantities to support the unstoppable debt addiction.
 
The price of gold is proportional to the net outstanding global sovereign and private debt levels. If the economy has a significant downside contraction then tax revenues will drop like a rock and debt levels will sky rocket. Any substantial increase in the amount paid by the US or EU government on their debt service interest rate would put either into default. There is not option for the Fed ultimately other than QE.
 
One way or another, interest rates must ultimately be allowed to gradually rise but that won’t happen on Ben’s watch and as long as the global financial system continues to try to balance its misjudgments on the backs of citizens.
Duffminster

Wed, 09/21/2011 - 20:09 | 1695132 topcallingtroll
topcallingtroll's picture

Seriously guys it is ok to have a difference of opinion. This site is not Daily Kos.

But to spout off an argument that shows a complete lack of understanding of financial lingo used here just embarrasses you.

I cant correct all of these basic misunderstandings I have been seeing recently from new members. Perhaps buzz, redpill, mynhair, and the rest of you sheepdog etc, could help correct misunderstandings. Perhaps we can encourage some people to read more widely. This site is open to anybody and the tylers are trying to spread the word to the sheeple.

Wed, 09/21/2011 - 20:27 | 1695173 jdelano
jdelano's picture

You're like chunk from the goonies...."guys?guys? Hey....wait for me!"

Wed, 09/21/2011 - 20:46 | 1695233 topcallingtroll
topcallingtroll's picture

Lol

Wed, 09/21/2011 - 20:34 | 1695192 High Plains Drifter
High Plains Drifter's picture

http://www.marketwatch.com/story/why-the-insiders-have-quit-buying-stock...

insiders have quit buying stocks. crash coming in october?

Wed, 09/21/2011 - 20:39 | 1695208 Bunnykins
Bunnykins's picture

Selling off and not buying back, as they were in Aug and July. Maybe not a crash, but definitely something to watch.

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