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The Scariest Chart Ever?
There are many charts out there all of which are to some extent worth of the adjective "scary" although today's Bloomberg chart of the day may just take the prize, if only for a few days until the European hopium daze passes and reality manifests itself in the form of line and bar charts. The chart below is perfectly simple and perfectly self-explanatory...
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ha, take government spending out of the BS GDP number and we crossed that threshold long ago.
There isn't enough production in the world to pay back the debt incurred in one year. The only choice is default. The rule of banking is about to be realized by all. There is never enough money available to pay back all debts. Someone must take money from another to pay back his debt, someone must be left with nothing.
The only answer to the chart seen by our wonderful overlords is print, print, print.
The red one looks pretty bullish. I'd buy that for a dollar!
The turn north seems to be about the point when Nancy Pelosi and her "Progressive" cohorts were voted into power.
Actually... the first turn looks to be Reagan.
Yup, because Reagan cut taxes and regulations to get the economy turned around from 7.2% unemployment and 13.6% inflation, and he increased military spending to win the Cold War.
However, since ALL spending bills originate in the House of Representatives run by Democrat Tip O'Neill - who announced Reagan's budgets as "Dead on Arrival" - it is misleading at best to assign the deficit spending to Reagan.
So Tip built the City , WOOHOO!go dims.
puke.
at some point the people / corporations that MAKE MONEY are going to have to pay taxes..
and save the 30% Tax Brackets.. because loopholes make what is collected like 5% or less.
SOOOOOOOOOOOO, if we want a Country.. money makers are going to have to pay taxes.
LOTS of money being made!
But VERY little money being collected! by the Tax Man!!
I could go on about gutting America and send $7 Trillion (min) dollars of Tax Base to China in the past Decade?
I could go on about allowing China to buy TSY's on a dollar for dollar basis! give the fact that the Yaun is 1,200% Leveraged v. the U.S. Dollars 150% Leverage.. so handing China 1,100%(ish) for FREE on every dollar that allowed to purchase TSY's!!
China 2 or 3 years ago changed their ENTIRE ownership structure for off shore (Americans) personalities.
Fuck it.. You Dumb Fucks are going to get what your dumb, greedy asses deserve! Keep importing the 3rd World to the U.S. and sooner than later the U.S. will be a 3rd World Country for the Majority of Americans!
and the most well armed Country in the History of the World is NOT a good place to keep stirring the pot! like Corporate owned Media is.. ON FULL BLAST, in HEAVY ROTATION!
I guess you poor people should hurry up and kill the other poor people and then the rest of us will be able to enjoy the use of more reasonably priced resources!
Roubini: Eurozone restructurings will leave bondholders facing losses
Government debt levels in peripheral Europe mean restructurings cannot be avoided, economist Nouriel Roubini tells Credit magazine.
LOL!!!
Look at the date..
I have found the Answer!
Electronis Trading!!
and!!
a group that is willing to do God's Work!!
http://www.gsetnewthinking.com/
--Ben S. Bernanke (paraphrase)
John Maynard Keynes on inflation in The Economic Consequences of the Peace (p. 235-6):
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
--John Maynard Keynes (actual quote)
Inflation, bitches! Even Keynes thought it was EVIL.
Bernanke hearts evil
A simple, back of the napkin calculation by The Bernank (simplified in a vacuum to demonstrate the legitimate point):
--The Bernank
I can see Bernanke and his minion of economic advisors coming up with a solution to this problem: Breed more children and incinerate the elderly. Raises GDP per capita and lowers Debt per capita.
Ironically, .8 * 1.25 = 1 nominal consumption would be flat in that scenario.
Bernake is a Puppet..
just like Obama..
just like all those Dog and Pony Show Personailities within the Beltway..
just like in the State Houses..
all the way down to the Mayors Office.
Corruption is NOT! ONLY!! ALLOWED!!! it is rewarded through out the ENTIRE!! Country!
Interesting to see the MSM just barely starting to give Mr. Paul a little more coverage these days. I think they are beginning to factor in some plausible deniability when angry mobs show up at their production studios.
So, currency debasement is the perfect weapon for a Communist, i.e. Øbamunist.
Pick another ism (or better yet, don't pick one at all). You've been trapped.
Au contraire, Keynes was describing Lenin's strategy to destroy capitalism.
Full Keynes quote
Trapped indeed!
So even a moron can get it right once an eon.
To put the Keynes quote back into context:
"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation..."
Also, "Lenin was certainly right. There is no subtler, no surer means of overturning..."
Keynes was actually commenting on Lenin's strategy to destroy capitalism; he was not making an original observation, and putting this quote back into context shows this.
Source: Full Keynes quote
welcome aboard the slaveship EARTH.........And I also remind you that we have been a planet of slaver for a LONG LONG time....LONG means really long.
Nice chart.
Given that demographics are going to crap all over productive growth in the next 2 decades... I think the phrase these comments are missing is...
... Gooooold Bitchez!
Can't believe it hasn't been said yet.
The only way out is for debasement.. but we all knew that already...
Same graph without the "per capita" divisor.
GDP anyway is an artificial index, and debt is mainly hidden in unfunded promises; the real cross happened long ago, it just becomes more difficult to hide.
1. Kill Them (the top .1%)
2. Confiscate their 40% of everything
3. Pay off all debts
do I sound like a Commie? for wanting the top .1% DEAD! and wanting their 40%+++ of shit for paying off the debt they created to keep the planet enslaved?
http://www.gsetnewthinking.com/
I dont think they are doing God's Work!
I think they need to see God!
Hurry Goldman! Occupy is coming to get you, RUN!! LOL!!
Ignorant Childen, dressed up as hippy's, playing bongo's are coming! LOL!!
I thing that God, after seeing the results of last quarter, will fire them: I can see him yelling "I must do all by myself, cannot delegate the simpliest things!"
I see you have embraced the dark side.... Full of hate and envy. Be careful what you wish for, you might not like the world that would do such things.
That's a pile of PC bullshit. How many 100s of millions/billions have been killed and property damage done in the bankster's wars throughout history?
Well if you like this one, then I guess we will have to take a chance.
Actually, I think you're stopping a little short. I think #1 should read:
1. Kill Them (the top 1% and their families) Repeat once a year for 10 years, then reevaluate the situation to ensure insatiable greed has been eradicated from the gene pool. Repeat as necessary.
I don't like it, but anything less is a Pail O' Fail.
Kill the bottom 1%
yes. Why stop at only the upper echelon parasites? Salt them all.
BOB CHAPMAN : HOW IT WILL ALL END - Debt Jubilee or WWIII
Debt Jubilee will never happen, so.....
We are headed for war, uncertain whether it will be the civil variety or the nuclear variety.
I dare them to raise taxes.
I dare them to raise rates
It coming as it will help facilitate the one world government.
....and I will help those who accept their currency facilitate some lead.
Hey, GDP numbers are going up and according to all the latest earnings reports, unpayable debt is now counted as revenue.
WINNING!
Dumb question. How did consumer debt rise so fast after the 2008 crash considering banks are so stingy with loans now? Who is lending to these consumers?
Credit cards @ 30+% interest.
Ah right. The plastic economy. Thanks.
Because money is debt in our bizzaro system. Money (debt) problems? Simple, throw some more money (debt) at the problem!
Alex Kintner
How did consumer debt rise so fast after the 2008 crash considering banks are so stingy with loans now? Who is lending to these consumers?
Easy, it's called CREDIT CARDS.
Using tommorrows payday,today.And at 18.9-25% APR.
Truth be told, those lines probably crossed sometime around 2000. The $15 trillion, oft cited, GDP number is a complete fairy tale. Actual GDP is more on the order of $1.7 trillion tops.
Peonage, bitchez!
JUBILEE BITCHEZ!
DOW is +20 with APPL, IBM, GS, JNJ, BofA earnings TANKS yesterday?? WHAT??
Pump and dump baby. The bumpy plateau is where the real wealth extraction occurs.
Yeah, Wild daily swings -- classic market top according to my Stocks 101 book.
Go figure. I staked out a huge leveraged short position Friday night and nailed all the major events that were on schedule this week so I should have won the friggin lotery but I'm still treading water. I don't care since this market is a broke corrupt gambling den and you have to kind of expect these sort of things... but why the big boys are buying instead of shorting is a mystery. They must have insider knowlege.
Made me smile... Although it will not help make me money today, it's good to see my personal GDP/debt chart is a polar opposite.
Looks like as good a reason for another S&P melt-up as any to me.
Not sure what's scary about that. Real debt per capita rising 2.5% over 10 years? That's what an annualized 0.2%?
and Heres the scariest MATRIX in the world:--
http://www.mypromisefulfilled.net/docs/bankers.pdf
Apparently this was bullish for stocks.
Gotta go check mail for new credit card offers!
welcome to zH, Cal_Bear!
what a morning!
here i am thinking you have pretty nice tits!
yes with eyes and ears closed, la la la la la la la la
scary how? like BULLISH scary?
the populace is merely attempting to reflect its government's position. the main difference is that the populace isn't in the position to keep shadow books and subvert accounting laws quite as effectively.
It is 2011, now, let's think what will happen in 2015.
There was a (cockamamie) intelligence test for dogs I once heard of. They put a towel over a dog's head and measure how long it takes the dog to shake the towel off its head, to determine how intelligent it is.
We are a nation of people with towels on our heads. We agree to wear the towel like a horse wears blinders, because we think we will get Alpo instead of dry dog food or nothing.
People are now starting to itch at their towels but a scant few have dared to shake the towel off.
If we don't all shake our towels off, we will become a nation of towel headed fools, with no memory of anything else.
Saudi Arabia is a nation of towel heads, too.
Be glad that you have about 1-2 months before the shit hits the fan. Don't be pissed. Go to COSTCO and pick up some bags of rice, beans, and lentils. Be glad that you have a couple month's to stock up on food, water, and ammunition and you have time to warn your clueless family and friends and neighbors (although chances are they will ignore you, but hey, you tried). It could be a lot worse. It could come with no warning whatsoever. So be glad you have about a month before SHTF time. Learn how to shoot. Learn how to can. Hopefully by now you've learned how to garden, cause the ground is hard and your next chance will be spring 2012. Start holding community meetings. Don't go it alone. That's suicide. Your best bet is community of like-minded survivalists. And just hunker down and wait. It won't be long now. The major cities will be death traps. Mad Max Thunderdomes. This is it. End game. Best of luck.
The Thunderdome scenario is too good to be true. When TSHTF, we'll get a good long stint of martial law, then a new government to reboot the cycle of serfdom.
We are f$#%^d. The Fed will be forced to inflate like mutha' f#$%#$s. I don't see how any other solution is feasible. If the world will not allow Greece to default, at least not yet, how could they ever let the reserve currency default. They will inflate as the world has never experienced.
Exactly. Just buy some farmland, agricutural stocks, physical gold, physical silver and everything's gonna be alright... You can't print gold and you can't print rice...
How about excluding those of us who are productive citizens from that graph. I think the graph should show debt per politician, banker, and leecher and their respective gdp per politician, banker, and leecher. Its not my debt mother fucker.
It may or may not be, but it will certainly adversely affect your job and/or business, consumption (directly or indirectly), standard of living, opportunities and such, and those of your children, as even the responsible get thrown under the bus when the macro situation erodes.
Welcome to Camp Bernank! Like Hotel California, it's a lovely place.
I am not stating that it will not affect me, just the opposite, it will effect me and that is a problem.
Agree with you, then.
The Bernank, or more precisely, the people The Bernank runs his errands for, are either going to win or lose.
They've been on a big, big winning streak since about 1913 (incidentally, the year the Federal Reserve Act was signed into law).
I am the most capitalistic person, more loving of free markets, than just about any other person anyone is likely to meet.
Meritocracy rules. Kleptocracy is evil.
I detest our anti-capitalistic, pro-monopoly/pro-oligopoly, crony capitalistic (aka Friends of Planners), fractional reserve banking fiat scam system as much as or more than any other person anyone is likely to meet.
I agree with you. I would say we have not had capitalsim in a long time, it has been a slow death since 1913. It is time for debt based fractional reserve money to die the death it deserves. Central planning and corruption have decimated the wealth of the country.
This is Freddy Krueger. Scary to be sure, but if one is not a nubile teenager, there is no immediate threat. Japan, on the other hand, is Godzilla. Those big feet and the fire-breathing can put everybody in harm's way. Japan's debt is much more massive, and now it must seek funding internationally, as its government funding needs are no longer met by domestic private and corporate savings. Oddly, rather than spook the market, this change has international players stepping up and "diversifying" by buying those razor thin JGBs, further exacerbating the yen problem. JGB's haven't yet tumbled, though there's some tail risk there.
I keep referring to the Kyle Bass video, but I found his analysis and work fascinating. He spoke of Iceland only having net sovereign debt of 30% of GDP, yet Iceland exploded because its banks held assets of 10x GDP. He then went on to contrast total US debt and bank assets vs the same in Europe. The US was in the middle of the pack. So what is the tipping point? It does not seem to be as simple as a single chart.
Though this last comment is unrelated, I smiled when Bass said, "I could end the funding problem with Social Security tomorrow by moving the retirement age into the Bell Curve of death".
chindit13,
Japan's debt is much more massive, and now it must seek funding internationally, as its government funding needs are no longer met by domestic private and corporate savings.
Sound like anyone else you know?. We are them, the are us,only diffference is we ave the Fed buying ours.
I don't see why this is scary, we have the modern printer as our disposal.
+1 I see what you did there.[if it was intentional]
Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration announced today.
The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
Information about Medicare changes for 2012, when announced, will be available at
www.Medicare.gov
. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.
The Social Security Act provides for how the COLA is calculated. To read more, please visit
www.socialsecurity.gov/cola
.
The big problem is that people don't believe a revolution is possible, and it is not possible precisely because they do not believe it is possible.
- The Unabomber's Manifesto, 1995
I do say that I am in favor of the return of the guillotine, and that is for the worst of the worst of the guilty, … I first would allow the guilty bankers to pay, you know, the ability to pay back anything over $100 million personal wealth because I believe in a maximum wage of $100 million.
- Roseanne Barr, 2011
Roseanne Barr is an idiot, although I do not disagree with some of what she said in the quote. She is a populist pandering punk with a big mouth. Bankers do need to be punished though along with the politicians who took the bribes.
She is of the Rosie O'donnell mold: fat, butch, in your face, and ugly ,pandering to "female" and lezzy fangirls.
And a net reduction in the already low culture.
We get it, you are threatened by assertive females. Unfortunately for you she was born with all the same rights you were. I think you are just jealous that she has a platform of celebrity and you do not. Equality sucks when just anyone can get it eh?
Actually I think assertive women are more attractive than the weak, and passive aggressives, provided they have all the other accoutrements such as a voluptuous figure, inner and outer beauty, and a sense of self-worth that is justified.
Ms Rodman, is none of these, and now she's a frump.
Terrific heroine you got there. You will go to your grave before she ever makes it to the White House again.
looks like being a Hampster on a wheel isnt getting Americans anywhere
True, it's scary but not really newsworthy: the lines will cross the day the Debt-to-GDP-ratio crosses the 100% threshold. And this is just a matter of time.
Lets pray: minimum wage employees at mega malls are still shopping at other mega malls on theri day off.
Dr. Albert Bartlett….”the greatest shortcoming of the human race is the inability to understand the exponential function”.
.....or even spell it.
But just aks them what Judge Judy, Jerry Springer, Dr. Phil, Oprah, perky Katie, or Ellen Degenerate has to say about anything.
http://www.ftd.de/finanzen/maerkte/:boersenstar-im-interview-dirk-muelle...
Dirk Müller, "Mr. DAX 2008 - 2010" in an interview with ftd makes his case for a complete and total RESET.
This guy makes a lot of sense.
The masses are carrying the ever greater debt load of the state by way of increased taxation to cover the debt and the interest on the debt. The few that got rich over the past decades are on the receiving end of those payments and were on the receiving end of the boom years.
It's kapputt und vorbei.
The few that made it rich will give up a lot and the masses will have a chance to restart, and the system will have a chance to restart.
My additional comment would be that if the RESET doesn't happen, we will have civil wars and revolutions where the few that made it rich will loose everything including probably their lives and the lives of their families.
Yes, we are at the dawn of such a time in our history - again.
Wait until the OWS protesters turn the protest into a riot.
A global one. They're having a conference with London and Frankfurt.
http://www.guardian.co.uk/world/blog/2011/oct/19/occupy-live-debate-lond...
RALLY!!!
OT/ I haven't checked to see if this is accurate yet I got it in an email. Kinda sounds like a ZHer sent it out though.
The Solar thing just got a little more interesting.......REALLY!
Just move along folks.....nuthin goin on here.
Other than you who gives a shit?
I won't pay.
US debt/gdp:
1945: 117%
1973: 35%
number of years 1945 - 1973 with negative real interest rates: 50%.
(cf. Carmen Reinhardt: The Liquidation of Government Debt, NBER, 2011)
number one central bank objective 2009+: get inflation going.
The US clown Obama is on the news and says that his adminstration has made all the right moves. I guess when you are trying to destroy the country, I have to agree with the Muslim.
Gold Down again! lol!!
,
I'm obviously way behind everyone else. I need to go out and borrow immediately.
Too much debt, we need to destroy it all around the world.
It's about that time of day for the PPT to release another completely absurd too good to be true rumor that makes no sense at all to juice the market 150 points.
Welcome to the club.
paulie
This is why the housing market, despite good news today, is not sustainable.
http://confoundedinterest.wordpress.com
Hey hey, Joey, You got some big balls!
Is it too hard to realize class 'mingling' ? Do we really have hope that the american people will educate themselves enough to vote out the FED in 2012?
Game, Blouses.
Time for pancakes.
Why is people worried about debt that will never be paid?
Just take a top down approach and look at the World Bank/IMF model. Loan funny money to those that you know can never repay it. Wait for an event of default, sweep in and rape, pillage and plunder.
Lot of long commentaries here.. you are YOUNG, you have BRAINS, you're all smart enough to found your way here to this venue, (Thank you T.D.'s)... so now - DO SOMETHING WITH THE FRUSTRATION AND THE ENERGY. Make Occupy Wall Street a MOVEMENT w a head and legs. You can control how you respond to the madness.
As consumers and investors, we are ALL responsible for this madness. Let's starve the beast.
Thank "K" Street, "K"ongress, and the Supreme "K"ourt for the inspired leadership that got us to this historic point...
Somehow people will find money to buy Iphones, though.
Freedom from Choice Is what they want.
Freedom from Responsibility I'd say.
Some more scary data regarding the pending implosion in Europe. Check out these leverage/capital ratios for european banks from Hussman's site. Nice piece
http://www.hussmanfunds.com/wmc/wmc111017.htm
"When you consider the fact that most U.S. banks, just before the U.S. credit crisis in 2008, sported gross leverage ratios of about 12 (where Citigroup, Morgan Stanley, Goldman Sachs and JP Morgan remain today), the gross leverage ratios of European banks today are truly astounding. "
Maybe all this 2012 hype isn't bullshit after all?
The new religion to forget our troubles : OBSCURANTISM/ Militarism
Forget Arithmetic, logic, ethics...Just remember might is right. Problem solved. Why be scared when you can steal.
The world is round and so must be history. Back to feudal times.
Whose ethics?
And, yes, history is in a large part cyclical.
I'm scared. But my banker said as long as Wall Street Bankers get thier Bonuses, everything will go just fine.
Don't they call this the Mininsky moment? Or is that when the interest on debt is higher than GDP - is is about 3 years from now
Serfin' the Debt ! Come on a Serfin' Safari.....yeah, yeah ! My apologies if someone already used that line....and to the Bitch Boys ! Monedas 2011 Half my humour tied behind my back to minimize spontaneous incontinence incidents !
thanks dearest leader and your klak. we worship the ground you and ows walks on.
This may be the scariest TREND set.
And it's happening just as we knew it would, Can you spell (INFLATION?).
The velocity of money,LOL, coming back home.
http://www.24hgold.com/english/news-gold-silver-foreigners-losing-confidence-in-holding-us-treasury-and-agency-debt.aspx?article=3662992604G10020&redirect=false&contributor=Bud+Conrad
Bullish, I say!!!
most debt slaves forged their own chains due to their inability to delay gratification. immature.
Good tough and rough love ! You can always tell a Socialist when they start whining about interest charges ! They pay to rent their pigeon roost apartments, they pay to rent their porn videos, they pay to rent a car......but the idea of paying rent on borrowed money really bothers them ? Monedas 2011 Free Market Liberation Army
take your lithium!
It doesn't work anymore ? Monedas 2011 Lithium Tolerance Syndrome Sufferer
Injectable Prolixin. Old school. Sure, there are problem side effects but fewer compliance worries. Cheers.
would love to see the ratios w/ TOTAL debt (public & private) -- bet these lines have been converging for years and that recent deleveraging on the private side has nothing to slow it down with the government taking the baton. Isn't it true that global debt has been growing faster than global GDP for more than 25 years? On a path to ruin
Where did this chart come from? Link? Is there a similar chart which shows a greater time frame, such as 75 years?
TIA
I have been to the mountian top. And the evil doers made the moutain higher.
I always felt the GDP vs debt discussions werent very useful. Its possible for GDP to grow 10% while debt could grow 20% without inflation. The problem is excessive costs.
Will the snake eat itself faster as debt increases?
Looks like a blow-off, top out, the end of the cycle. Reminds me of the Nasdaq in 2000 and home prices in 2006.
Irrational, and guaranteed to end in tears for many. Not sure where it goes from here, but the end game cannot be good.
sschu
#OWS will need a new socialist battle cry:
Tell me what sheeple slavery looks like:
This is what sheeple slavery looks like.
Show me what a one world government looks like...
Excellent Interview Mr Sprott
http://www.youtube.com/watch?v=VZoAEot6Jlo&feature=feedu
"Get to the Chopper!"
As an economist and finance lawyer by training and years of practice, I urge everyone to join the DEBTORS' REVOLT - DEFAULT-EN-MASSE movement.
-
The sooner we hit the 'reset' button, the sooner we can rebuild fair institutions.
-
So just walk away from your debts - especially student and consumer debt - and let the banks collapse.
-
DEBTORS' REVOLT -- DEFAULT EN MASSE. Spread the word, write it on your signs, join in.
We, as a nation, need to simply suck it up, recognize that these contracts were made in what is essentially a different economic era, and recognize that they are incompatible with the new situation. It has to simply be zeroed.
As an economist and finance lawyer by training and years of practice, I urge everyone to join the DEBTORS' REVOLT - DEFAULT-EN-MASSE movement.
-
The sooner we hit the 'reset' button, the sooner we can rebuild fair institutions.
-
So just walk away from your debts - especially student and consumer debt - and let the banks collapse.
-
DEBTORS' REVOLT -- DEFAULT EN MASSE. Spread the word, write it on your signs, join in.
We, as a nation, need to simply suck it up, recognize that these contracts were made in what is essentially a different economic era, and recognize that they are incompatible with the new situation. It has to simply be zeroed.