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Summarizing 2011 In Nine Easy Charts

Tyler Durden's picture




 

 

If one had to summarize 2011 in one sentence, it probably would be: "a year in which the market ended unchanged, in which the world got within seconds of global coordinated bankruptcy, and in which central planning finally took over everything." Simple. On the other hand, conveying a comparably concise message full of hope and despair at the same time, using charts would actually be slightly more problematic. But not for the Economist, which has managed to do just that, however not in one but nine discrete charts. Here is what they did.

From the Economist:

IN 2008 banks were saved by governments. The question that dominated 2011 was how to save governments. The euro-area sovereign-debt crisis metastasised from a problem affecting small, peripheral states to one that threatens the single currency itself. The rise in Italian bond yields in particular marked a dangerous new stage in the saga (chart 1). European banks, stuffed full of government bonds, have suffered a severe funding squeeze since the summer (chart 2). The euro was oddly resilient against the dollar, but Switzerland and Japan intervened to hold down their currencies as investors sought shelter (chart 3).

 

Faced with skittish creditors, countries in Europe tried to instil confidence by cutting spending (chart 4). Austerity and growth do not mix, however. Euro-area GDP remains below its pre-crisis level. American output did at least regain that mark in 2011 (chart 5) but US unemployment remained very high.

 

The emerging economies again outshone their rich-world counterparts in terms of growth and jobs. But fears about inflation (chart 6) slowly gave way to fears about growth as the year went on and Europe’s problems worsened. Emerging-market stocks dropped sharply in the summer as investors put their money into less risky assets (chart 7). Gold also benefited from another year of fear. The metal was set to post its 11th consecutive annual gain in 2011 (chart 8). Google searches for “gold price” rose whenever measures of market uncertainty did (chart 9). If governments aren’t safe, after all, what is?

Chart 1

Chart 2

Chart 3

Chart 4

Chart 5

Chart 6

Chart 7

Chart 8

Chart 9

 

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Thu, 12/29/2011 - 17:56 | 2020449 slewie the pi-rat
slewie the pi-rat's picture

charts, BiCheZ!

9 = Groundhog Day

GahhhhhhhRhhhhahhh!

Thu, 12/29/2011 - 18:01 | 2020461 nope-1004
nope-1004's picture

Centrally planned economy, based on Management of Perceptions (MOP).

It's all fake and it's all being kept alive with increasingly feable intervention attempts.  How long the criminals and liars can keep the MOP facade going is the key.  Reality has to re-emerge at some point.

 

Thu, 12/29/2011 - 18:02 | 2020470 I think I need ...
I think I need to buy a gun's picture

i thought it was pretty cool leno let ron paul on last night for an extended period and let him talk we must be near the end,,,,,

 

on the other hand world news tonight the other night called him a racist for things he didn't write himself and called his following "THE FRINGE and RADICAL" element of society,,,,thats you people on here the fringe and radical thats who diane sawyer is talking about

Thu, 12/29/2011 - 18:35 | 2020533 Gene Parmesan
Gene Parmesan's picture

Newt said I wasn't a decent American. :(

Thu, 12/29/2011 - 18:41 | 2020548 Badabing
Badabing's picture

Its a lot worse than you think because those chart numbers have been fudged by the squid.

Thu, 12/29/2011 - 23:12 | 2020906 Shocker
Shocker's picture

2011 can be summarized in a few words WTF happened. This has to be the chippiest recovery I have seen my years.

http://www.dailyjobcuts.com

 

Fri, 12/30/2011 - 05:05 | 2021142 Oh regional Indian
Oh regional Indian's picture

Want to see the EU time-bomb?

Look at chart 5. Spain, GDP and UN-employment. That is a powder keg. And Japan. 

These are the visible tender spots, while the US continues to apply lipstic on ze Piggy.

Good luck everyone, 20i2 is going to be a zinger. A hummmmmmdinger.

;-0

ori

/world/

Thu, 12/29/2011 - 20:57 | 2020724 1835jackson
1835jackson's picture

Newt is a fat prick do not listen to that corrupt arse head.

Fri, 12/30/2011 - 01:31 | 2021057 Reform1776
Reform1776's picture

+1K

Have you checked out Buddy Roemer? THE Anti-corruption candidate, and not taking any PAC money!!!

Fri, 12/30/2011 - 02:49 | 2021099 SMG
SMG's picture

I love Ron Paul, and I hope he wins.  But if not Roemer is a possible alternative. here's a pretty good interview with him I saw the other day, and if Ron Paul doesn't make I would seriously consider him.

 

http://www.andmagazine.com/stipkolive/

Fri, 12/30/2011 - 06:53 | 2021178 Monedas
Monedas's picture

Good interview !      I'll bet we have a million Americans who could make a better President than Obama !  Roemer would have to be with those at the top of the list !      First job requirements....you have to be an American and not a CIA protege puppet....and you have to have a healthy love for your country !

Thu, 12/29/2011 - 18:39 | 2020545 zorba THE GREEK
zorba THE GREEK's picture

Someone just told me he believes TPTB are going to back Ron Paul for president

because he is the only candidate with a chance to save the U.S. from total collapse,

and he would put us on a gold standard to protect the value of the dollar. Most of

TPTB own many dollars and much gold. Hmmmm.... It makes sense to me.

Time will tell.

Thu, 12/29/2011 - 19:02 | 2020574 SilverRhino
SilverRhino's picture

If they are doing that they intend to cannibalize the lowest ranks of TPTB and throw out a lot of scapegoats.

The second benefit is that they keep the current power structure intact and profit from it.

Thu, 12/29/2011 - 19:29 | 2020617 pavman
pavman's picture

The big problem w/ RP and the gold standard is it would guarantee hyper inflation when they had to re-peg the dollar to gold.  If it happens, it won't be pretty as the US gold reserves are pretty dam low, imho... to cover all that cash they've pumped into the system over the last 10 years.

Thu, 12/29/2011 - 19:58 | 2020656 I think I need ...
I think I need to buy a gun's picture

that wouldn't cause hyperinflation, the hyperinflation already happened in real assets a gmc yukon cost 60,000 dollars 60k,,,,,,that same car in with steel aluminum and rubber cost 4800.00 in 1979...........do a cost comparison from 1940-1970 i don't think you will have a 55k difference.......it will kill the value of pensions, 401ks's and ira's and imported goods may cost some more, but we won't have hyperinflation if gold is at 5k, 50k or 500k an ounce,,,,,,,,,,,,,,,,,,,,,

Thu, 12/29/2011 - 20:06 | 2020662 nope-1004
nope-1004's picture

He was referring to the amount of gold in existence to be able to back the dollars needed if M3 were to stay where it is.  The value of homes and cars have inflated substantially due to availability of credit, which is exactly why a return to a gold standard would be hyperinflationary - the amount of gold in existence pales in comparison to dollars in existence and it would show dollars to be worthless on a relative basis almost immediately.

 

Thu, 12/29/2011 - 20:28 | 2020691 SRSrocco
SRSrocco's picture

THE INFLATION vs DEFLATION DEBATE MISSES THE MAJOR PROBLEM

The big problem facing modern economies like the United States is the Falling Energy Returned on Invested (EROI).  We could survive a hyperinflation event after several years, but the Falling EROI is forever.  People tell me that there is all this ZERO POINT ENERGY and FREE ENERGY TECHNOLOGY to save us.... and in theory they might be right.

But... on the other hand, ROME was sitting on a great deal of resources like oil, metals, minerals and etc and could not take advantage of it.  It's one thing to have the theory of FREE ENERGY or whatever, and another to have an economic system already able to utilize it.  We only have the former.

In reality, hyperinflation or deflation will not be the KILLER of the US EMPIRE.  It will be the Falling EROI.  As I have stated before, the huge increase in Derivatives and Monetary Printing has been to COMPENSATE for the Peaking of Global Oil and the Falling EROI.

For the Fiat Currency Ponzi scheme based on fractional reserve and compound interest to continue, the ENERGY SUPPLY must grow with it.  Global Oil supply has plateaued since 2005.  Thus, without energy growth the Fiat Monetary System cannot grow.  So instead the Brain Surgeons running the Central Banks have decided to PRINT and PRINT to give the ILLUSION of growth.

This will have a very BAD ENDING indeed.  Time to be in GOLD and SILVER unless you want to get the PAPER ENEMA of a lifetime.

Thu, 12/29/2011 - 22:19 | 2020806 Fedaykinx
Fedaykinx's picture

Even accepting that oil has plateaued, it is not the end-all be-all of energy.  It is entirely possible that we could reserve much more oil for uses such as plastics and fertilizer while ramping up consumption of coal and gas, of which we have plenty.  We can do this today, it is not contingent upon new technology being developed.  It does seem to me that economic growth is to be sacrificed on the altar of declining energy availability, in the name of the environment and "saving the planet" from the evil humans.

Thu, 12/29/2011 - 23:09 | 2020900 Errol
Errol's picture

Fedaykinx, I'm not sure you understand the concept of EROEI.  The only reason there currently appears to be "plenty" of nat gas is fracking.  It turns out that a fracked nat gas well produces orders of magnitude less gas over its lifetime than a conventional nat gas well, but costs more to complete.  This is a perfect example of declining EROEI... 

Thu, 12/29/2011 - 23:16 | 2020917 trav7777
trav7777's picture

once NG and coal peak (and they HAVE in various countries, wells/mines, and fields), we'll just ramp up production of unicorn farts.

And as if we can burn increasing amounts of coal with no environmental consequences...lol

Fri, 12/30/2011 - 19:06 | 2022771 Element
Element's picture

Don't forget those growing populations of whales ... blubber to oil ... that should save us

Thu, 12/29/2011 - 23:12 | 2020899 constantine
constantine's picture

Yes, basically we've compensated for insufficient increases in productivity with debt issuance.  Sad thing about this is that we did it to ourselves; or rather allowed those that control the supply of fossile fuels to enculture this into our society.  The internal combustion is like apple pie and Thanksgiving here in the USA and it's all due to marketing - During the 70s, the diamond industry, through constant saturation of advertisements in magazines and other mediums, within a decade, made the wedding ring an integral part of Japanese culture; a country that previously barely had a concept of courting and/or amorous love.  Well the oil industry did the same to us. 

EROI, I read recently that around the start of the industrial revolution, for every unit of energy it took too drill oil, 100 units were returned in production.  Now, due to dwindling supplies and greater difficulty in extracting remaining supplies from more complex locations, this return has reduced to 3.

Thu, 12/29/2011 - 23:19 | 2020923 trav7777
trav7777's picture

dude, the oil industry didn't ADDICT people to eating as many calories now on average as Roman Emperors.

People CHOSE oil because it is a superior project...liquid energy.  Oil IS the "free energy" that everyone thinks is out there waiting to be exploited.  It's precisely how we were able to work magic over the past 150 years.

Our population went vertical and we can actually fucking FLY now.  Think about this on a deeper level, the advent of the machine age.  Life is more different now from 200 years ago BY FAR than things were in the previous 1, 2, 3, 5 thousand years.

Fri, 12/30/2011 - 01:51 | 2021066 Max Fischer
Max Fischer's picture

 

 

As usual, you're oversimplifying it and I think it's because of your melanin.  For you, oil is the beginning of civilization and the end.  I think most everyone else recognizes that it's far more complex than that.  Not everything is as black and white, as you'd like.    

Consider the following quote: 

A critical fact in the world of 1801 was that nothing moved faster than the speed of a horse.  No human being, no manufactured item, no bushel of wheat, no side of beef, no letter, no information, no idea, order or instruction of any kind moved faster.  Nothing had moved any faster, and as far as Jefferson's contemporaries were able to tell, nothing ever would.  - Stephen Ambrose

Sure, oil was absolutely fundamental to the Industrial Revolution and for propelling human prosperity into the stratosphere, but you must ask yourself why did it take so long?  The oil has always been there.  What happened in the early 1800's that enabled humans to suddenly break out of our Malthusian Trap and to experience a sudden, massive boom of prosperity that continues to this day?  For thousands of years, we lived poor, nasty, brutish and short* lives.  Then, seemingly out of nowhere, human civilization took off.  

There were four factors that came together at relatively the same time, and oil was not one of them.  Again, the oil had always been there.  If you're wondering around Barnes and Noble, check out The Birth of Plenty, by William Bernstein. It's written by a Jew, so I know trav7777 won't bother, but for everyone else, it's really fascinating. 

Max Fischer, Civis Mundi

*Thomas Hobbes

Fri, 12/30/2011 - 02:07 | 2021083 SRSrocco
SRSrocco's picture

Max... sometimes it is THAT SIMPLE.  No words are going to move you from your beliefs and opinions on this matter.  And in reality....that is just fine with me. 

On the other hand, I gather you think we have done something great with all this wonderful technology and etc.  You ever been to a BLACK FRIDAY SALE? Ever watch Fox Business or the Kardashians?  How about all those high IQ's at a Monday Night Professional Football game?

Hey, I am not bashing JOE BAG OF DONUTS, but your so called idea of modern "CIVILIZATION" is not that impressive if you just sit down at WAL MART and look around for a few hours.

With a FALLING EROI comes the inevitable collapse of the JUST IN TIME SUPPLY CHAIN.  The illusion of CIVILIZATION will disappear faster than you can say "A DOUBLE DECAF LATTE".

Sorry..... I wish I had better news, but thats the facts.

Fri, 12/30/2011 - 04:34 | 2021127 Seer
Seer's picture

"What happened in the early 1800's that enabled humans to suddenly break out of our Malthusian Trap and to experience a sudden, massive boom of prosperity that continues to this day?"

Malthusian Theory is about the consequences of perpetual growth.  The "boom and prosperity" that you talk about resulted in MORE growth, which is EXACTLY what Malthus was warning about.  That is, you've got the logic completely BACKWARDS!

Have you NOT watched Dr. Albert Bartlett's presentation Arithmetic, Population and Energy?  I highly recommend it.  Key is that ALL measures MUST include rates of growth else they are meaningless: your statement about there being enough gas and coal is devoid of any meaningful measure because it doesn't state expected growth rates (increase in rates of consumption).  It's pretty simple: if you have a glass of water and I tell you have a LOT of water, enough for 30 minutes given the rate that you're currently drinking it and you then SHARE it with others, then that glass of water (given your previous rate of consumption) will NOT last you 30 minutes!  You cannot consume something at a faster rate and expect it to last the same as if consumed at a lesser rate!  Yet, this is exactly the failure in logic (or omission by way of ignorance) that you and others who speak in terms of "plenty" exhibit.

Fri, 12/30/2011 - 11:21 | 2021575 Hugh_Jorgan
Hugh_Jorgan's picture

What happened 200 years ago? Are you all still asleep this morning?

What happened leading up to 200 years ago was that in the quaint Puritan Towns in the 18th Century Americas the world had the first spiritual Great Awakening of the modern age. They also taught their children how to think. These children became active in their government and learned all about governments from the past by reading lots of old books. Then a band of radicals amongst these civic leaders emerged and felt obliged to tell the King where he could put his Centrally Planned taxation and brutality. But not before they constructed a new form of governance that was unlike ANYTHING the world has seen before. A vast open playing field that would allow ANY honest, hard-working, God-fearing man to not only succeed but thrive.

That new government was a rousing success, it is called the US Constitution. One man called it "the 5000 Year Leap" and wrote a book on it by that name. You should read it sometime.

Fri, 12/30/2011 - 15:39 | 2022250 constantine
constantine's picture

Did you even think about the post before you read it?  The point that I was making was not to summarily criticize the advent of the use of fossil fuels and, in particular oil, but rather to make the point that the returns are dramatically contracting with the passage of time.  We have not replaced this reduction in its productive return with enough new technologies.  In the process of acquiring wealth by selling oil and other fossil fuels, the producers of these commodities were able to yield undue influence, whether it be through politics or economic means, that has warped public and private policy against the development of new technologies that may have put them out of business or reduced their power.  Do you think it was just a coincidence that two of the last four presidents were directly tied to the oil industry?

Obviously, oil and the internal combustion engine produced great utility to the world economy and this was a good thing.  Oil may have been the 'free energy' for the last 150 years but that doesn't matter when we run out of it or if more energy is required to extract it than is produced by burning it.

With that said, you are right I am completely against flight and all machines - I just use them all of the time.

 

Thu, 12/29/2011 - 23:31 | 2020940 Caviar Emptor
Caviar Emptor's picture

Yes. Return on crude oil has declined so badly that corn-based ethanol is now competitive on its own. So competitive in fact that Congress just voted to sunset the corn-based ethanol subsidy which was ongoing since 1979. The industry is no longer considered startup and no longer needs a subsidy to remain competitive. 10% ethanol gasoline is here to stay. There's a push to up that to 15%

Thu, 12/29/2011 - 23:38 | 2020956 Pbn2Au
Pbn2Au's picture

EROI (or EROEI) is the most important topic of our day.  It transcends, but is linked to, general geopolitics and economics.

One truth table, regarding EROI, might be: Agree/Disagree & Action/Inaction.

Agree+Action=Informed (many on ZH); Disagree+Action=Impossible (incongruent) ; Agree+Inaction=Wastrel (1+ STDV) and Disagree+Inaction=Hopeless (another 1+ STDV).

If you disagree, on any level, calculate how much energy you consume each day and compare that to how much energy you can produce (or hire) in a day.  Armed with your energy consumption data, compare it to historical levels (by class, if you prefer) and then to your desired standard of living.

There is no rational argument, short of a global epidemic, that can forestall the rapidly approaching net energy shortfall.  Efficiencies, replacements, alternatives and so forth (even at optimum projections) do not close the gap.

I'm an optimist.  We will advance.  Efficiencies, replacements, alternatives and more will come.  However, they will be late.  There will be an adjustment.  The prudent will prepare.

Thu, 12/29/2011 - 23:42 | 2020965 Caviar Emptor
Caviar Emptor's picture

It's simplistic to assume that there will be a seamless adjustment to any new type of energy source. Think about it. It took 100 years to build out the current distribution system. 

Fri, 12/30/2011 - 04:44 | 2021132 Seer
Seer's picture

And this System, which is MAGNITUDES greater than any before, was built on high density, plentiful energy.

Not only will we NOT be able to make any change seamlessly, we WON'T be able to replicate the current System, there's just NOT enough energy to support continued GROWTH.

http://fora.tv/2011/10/26/Growth_Has_an_Expiration_Date#fullprogram

Fri, 12/30/2011 - 08:32 | 2021225 PMakoi
PMakoi's picture

"pretty darn low" is too high of an estimate for U.S. gold reserves!

http://www.fgmr.com/accounting-for-the-esfs-gold-swaps.html

https://www.imf.org/external/np/tre/activity/2011/122211.htm

ESF, SDR, physical gold rehypothecated...  possession will be 9/10ths of the law in time, and there won't be enough lawyers on the planet to handle the paper arguments MFer's go Global, who's got the real gold???  Oh geez, it's the Federal Reserve and they're going to save us.  Hahahahahahaha!  Grunch time!

Fri, 12/30/2011 - 08:58 | 2021266 Quinvarius
Quinvarius's picture

I think you need to rethink that.

Thu, 12/29/2011 - 20:14 | 2020671 SwingForce
SwingForce's picture

If you haven't read "The Creature from Jekyll Island (5th edition)", by G. Edward Griffin yet, please do so. You will have a clear understanding of who the players are and what they ultimately want. A MUST READ.

Thu, 12/29/2011 - 22:21 | 2020808 falun bong
falun bong's picture

I heard about this book for years, this year I finally read it. Every ten years or so a book comes along that completely changes how I view the world. Must read!

Thu, 12/29/2011 - 23:13 | 2020888 Dantzler
Dantzler's picture

Agreed.

I was actually thinking it would be fun to buy 100 copies in bulk and hand them out @ OWS events to folks that could pass a simple "I know how to think and am open to new ideas" test.

Fri, 12/30/2011 - 04:48 | 2021135 Seer
Seer's picture

Yeah, I know what you mean.  I see this same thing with many (even here) who don't get it that ANY system that's predicated on perpetual growth on a finite planet is going to FAIL.

Thu, 12/29/2011 - 20:32 | 2020705 disabledvet
disabledvet's picture

A gold standard cannot nor ever will protect the value of your dollar. For that you still need the best of the best for public sector budgeting, borrowing and spending. A gold standard DOES protect the value of your gold however. As we now know it does so in at least two ways: by locking in a (high) price for said metal and by quite simply not allowing it to be stolen by a Bankrupt Judge. How still unclear how Congressman Paul'smviews on a gold standard jibe with his views on Banking. The two seem to totally at odds at me...like some massive "star collision" is going on inside his head or something...anywho...

Fri, 12/30/2011 - 02:25 | 2021090 Prometheus418
Prometheus418's picture

He has very clear lines of logic in his published books.

While Dr. Paul does suggest that Gold and Silver are viable currencies, his main point is that anything can be used as currency, provided that no one entity can control the supply and flow of capital.  

A comment earlier in the thread rings true- there's a better than even chance that TPTB will back Dr. Paul this time.  Two possiblities for that play exist- the first is that they want to discredit his theories by allowing him to take the helm of a sinking ship, and the second is that they do not want a collapse, and honestly back him.  

The second, despite the bad press, is entirely possible.  No matter how I look at it, there is no way that chaos and anarchy that is not severely controlled in both time and location can be good for anyone, no matter where they are on the ladder of society.  Sure, temporary chaos is an essential component of scientific human control if you want to change the rules of the game, but  TPTB gain far more from contented and productive workers in all levels of society than they do from ragged revolutionaries that are trying to kill them.

 

Fri, 12/30/2011 - 03:16 | 2021106 wisefool
wisefool's picture

+1. I think there will be a chain reaction without Paul v. Obama. Win or lose at that level and it will send a strong signal to the establishment and their MSM presstitutes that they need to change. This foriegn policy stuff is absolutely going to backfire on the MSM for the left and the right. The more they both hatch schemes and false flags like the saudi ambassidor assasination plot in D.C., the fast and furious stuff, the Iraq contention, "ron paul doesn't love isreal". etc ... the deeper a hole they dig. well read types can see right through it. And those types of people are observed by others. I watched a vid clip of MSNBC Racheal Maddow with a guest host trying to triangulate. "Ron Paul and the republicans are extreme opposites of each other, why isn't there someone in the middle"  ... wink wink ... obama ... TPTB..

And I also agree that Paul will implement sound money. There will be no return to gold as an "official" basis for the currency. He will cut 90% of the tax code out and audit the fed, which will take 90% of the tricks they use away, while retaining the minimal artifacts that people think are "just supposed to be there." even though they have no idea why.

If it is a Romney v. Obama contest they will have a war primed up or already going before the general, and then yes, you are going to have a breakdown in the USA that TPTB do not want.

Fri, 12/30/2011 - 04:58 | 2021140 Seer
Seer's picture

"This foriegn policy stuff is absolutely going to backfire on the MSM"

TPTB use the MSM (they OWN it!) to float balloons.  At the same time TPTB are programming the common citizen via the MSM.

The MSM is just TPTB's programming channel.  The MSM doesn't care about ANY policy that it's controllers pursue just as long as they (MSM) can continue to do TPTB's bidding.

Thu, 12/29/2011 - 18:14 | 2020479 slewie the pi-rat
slewie the pi-rat's picture

 

 

  1. true see nope on MOPE
  2. be careful what you wish for  L0L!!!
Thu, 12/29/2011 - 20:37 | 2020712 Atomizer
Atomizer's picture

Hand me the MOP, we have a spill in aisle seven.

Thu, 12/29/2011 - 23:06 | 2020894 rehypothecator
rehypothecator's picture

Management of perceptions?  The question isn't what the inflation expectation number is going to be, it's what is the consensus of what people think the inflation expectation number is going to be.  In order to count as a modern economy, we have to be at least 2 meta levels removed from anything meaningful.  The Powers That Be exert their power by controlling what people think the inflation expectation number is going to be.  

Fri, 12/30/2011 - 02:55 | 2021100 slewie the pi-rat
slewie the pi-rat's picture

then, they program their trading bots with stochastic perception and infrared laser-tag technologies, but with different scales, ratios, denominators, time frameworks and moving averages to simulate "markets"...

...then, they have breakfast...

Fri, 12/30/2011 - 12:30 | 2021753 TheFourthStooge-ing
TheFourthStooge-ing's picture

...then, they have someone else's breakfast.

Happy new year, slewie!

 

Thu, 12/29/2011 - 18:42 | 2020463 Jlmadyson
Jlmadyson's picture

The headline for 2011; All the printing did jack S period.

I mean you think about it. Add it all up, the QEs, the operation twists, the secret bank bailouts, Greece haircuts, EU treaty after treaty, ECB cuts, ECB $600 billion bank drop.......add it all up and put that beside th S&P for the year. It 's done jack and they have saved nothing.....except for another day.

Oh must not forget my favorite Ben Bernake RED ALERT we have a Lehman moment swap lines.

Man they printed like there was no tomorrow this year. Someone do the math please.

Thu, 12/29/2011 - 20:53 | 2020722 kito
kito's picture

Correct Jim....all this printing did nothing to offset deflation. And gold and silver prove it. Silver below January prices, gold still a bit up....but if there has been ongoing relentless printing, why aren't we seeing inflationary prices in commodities?........

Thu, 12/29/2011 - 22:28 | 2020821 chubbar
chubbar's picture

 Ans - DERIVATIVES. The ability to offer the UNBACKED paper promise of a real hamburger tomorrow for a piece of paper saying you own it today. Clear enough?

Fri, 12/30/2011 - 03:24 | 2021108 OldPhart
OldPhart's picture

JPM still has a risk that it might have to pay back the customers of MF Global.  Gold and Silver have to sink in price to allow a much lower pay-back, if/when that risk is fulfilled, from the funds that JP Morgan stole.

I expect to see further falls in gold and silver resulting from the MF Global heist.  The open interest contracts fell dramatically, and the price has fallen due to a simple lack of trust in the futures market by the average, private, investor.  Proof of this comes in the form of WSJ MarketWatch starting to shill the precious metals ETF's.

On silver, however, I was monitoring the futures price.  My indicator apparently was for December delivery and is now gone. 

What is the current indicator, and how do I update my symbol for monitoring going forward?

Thu, 12/29/2011 - 21:37 | 2020763 KickIce
KickIce's picture

The bankers will disagree, they picked up a ton of prime farm land this year.

Thu, 12/29/2011 - 18:01 | 2020467 Irish66
Irish66's picture

I feel disjointed

Thu, 12/29/2011 - 18:05 | 2020476 JPM Hater001
JPM Hater001's picture

So this is the best I can come up with...Sorry...

I work my ass off all year and the best you can do is summarize it in 9 charts?  I'm good with these 9.  10 was going to be frequency of copulation so I got lucky we didnt go any further.

Thu, 12/29/2011 - 19:02 | 2020496 TheSilverJournal
TheSilverJournal's picture

Taxing the rich won't help get out of this mess. It's is a spending problem, not a revenue problem.

Ten Consequences of "Tax the Rich"

Thu, 12/29/2011 - 19:02 | 2020577 MachoMan
MachoMan's picture

Care to comment on the wealth gap?  Do you believe that the concentration of wealth has no effect at all on our present economic environment?  If not, what other method would you propose for redistribution?

Thu, 12/29/2011 - 19:36 | 2020624 TheSilverJournal
TheSilverJournal's picture

Sure. With no wealth gap at all, there would be no incentive to produce. Why produce if you can go to the beach or party or teach your kids and not produce, and still be just as wealthy as the next person?

Of course the government can try to shrink the size of the wealth gap and redistribute the wealth, but in the long run, even the beneficiaries of the wealth distribution would be better off if there was never any wealth redistribution at all because redistributing restricts the growth of the economic pie and growing the entire pie will ultimately grow even the smallest slices.

I don't mind high concentrations of wealth earned by creating capital, but I do mind high concentrations of wealth gained through political connections and by controlling where government diverts resources to.

Thu, 12/29/2011 - 19:57 | 2020652 MachoMan
MachoMan's picture

Yes...  but I'm talking about a one-off event.  Do all of the anarcho capitalists think that unbridled capitalism actually exists when 1% of the starting field gets to take off minutes ahead of the rest?  And I say that as a staunch libertarian and free market advocate.

Otherwise we end right up where we are...  except with the very real possibility of even less constitutional protections (if that is possible).

The obvious compromise is to immediately prosecute financial crimes and see where we are then, but I suspect we're talking mole hills.

I'll posit that how level the playing field is when the starting gun fires is directly correlated to how long the charade lasts till the next inevitable bust (it's going to happen regardless of what economic system we use).

PS, it might help if you directly addressed my questions rather than talk in theories...  we agree in theory.

Thu, 12/29/2011 - 22:00 | 2020720 TheSilverJournal
TheSilverJournal's picture

I thought I answered it pretty well by giving a more complete answer, but I'll stick to your questions.

Q) Do you believe that the concentration of wealth has no effect at all on our present economic environment?  If not, what other method would you propose for redistribution?

A) No, the concentration of wealth does effect the economy. Like I said above, if there was no wealth gap at all, there would be no incentive for anybody to work.

I propose no redistribution. I think people should keep what they earn. The government does need to collect some taxes in order to have enough resource for a national defense (not a national offense) and to protect property rights, and in order to do so it should be collect through a sales tax. I do not believe there should be an income tax, which is how it was in this country for the majority of the time. An income tax gives incentives not to produce which is bad. A sales gives an incentive not to consume and to instead save which in my book is ok because savings and investments is where the capital comes from to create business and jobs and grow the economy.

TheSilverJournal.com

Thu, 12/29/2011 - 23:19 | 2020925 constantine
constantine's picture

TheSilverJournal, though your analysis is correct from the standpoint of economics.  The problem is that you take for granted that what is 'kept' is always 'earned'.  More and more, one needs to replace the word 'earned' with 'extracted' or even 'stolen'.

 

Fri, 12/30/2011 - 00:04 | 2020994 TheSilverJournal
TheSilverJournal's picture

Which is why the power of the federal government needs to mostly disappear. The politically connected are able to profit too much from who government decides to dole the money out to. Give the government less resources and less power to regulate and crony capitalism / fascism / socialism, whatever you want to call it, will come to a halt.

Fri, 12/30/2011 - 08:24 | 2021219 AnAnonymous
AnAnonymous's picture

TheSilverJournal, though your analysis is correct from the standpoint of economics

//////////////////////////////////////////////////////

A US propagandist coming to strengthen another US citizen propagandist's propaganda.

This is how it works in this US driven world.

Perfect scheme for consumption of resources.

But what? Facts exist outside US citizens. No matter how numerous they are, US citizens voices can not turn insane assumptions into facts.

Thu, 12/29/2011 - 23:20 | 2020927 trav7777
trav7777's picture

wtf, you think ASPIRING to be rich people is why people work?  WTF kinda idiocy is this?

Fri, 12/30/2011 - 00:06 | 2020995 TheSilverJournal
TheSilverJournal's picture

People trade their labor for goods. The more the government squanders, the more labor is needed in order to get the same amount of goods.

Fri, 12/30/2011 - 01:47 | 2021071 Platypi4Lyfe
Platypi4Lyfe's picture

What the fuck is with everybody +1ing themselves? +1 capital punishment for +1ing yourself.

Fri, 12/30/2011 - 08:19 | 2021213 AnAnonymous
AnAnonymous's picture

A) No, the concentration of wealth does effect the economy. Like I said above, if there was no wealth gap at all, there would be no incentive for anybody to work.

//////////////////////////////////////////////////////

Makes me laugh. US citizen and their truisms. Laughable.

A lone person. Is a wealth gap possible between you and yourself?

Too funny actually.

If ever one finds oneself isolated, there is no more incentive to work because there is no wealth gap possible.

And that is the primary issue of the current state of the world, US citizenism. Leading people to manufacture absolutely nonsensical propaganda in order to try and justify US citizenism.

The US is non the solution, the US is the problem.

Fri, 12/30/2011 - 10:55 | 2021497 MachoMan
MachoMan's picture

The question is not whether there should be a wealth gap or not...  THERE WILL ALWAYS BE ONE BECAUSE ALL PEOPLE DO NOT PRODUCE EQUALLY (or, alternatively, are not equally politically connected).  That is not the issue...

You have to address the present world, right here, right now, and discuss the wealth gap...  We all understand the paradox of socialism (ultimately, it is self defeating in that there is no marginal incentive to produce).  That's completely beside the point.

Further, the comment "if there was no wealth gap at all, there would be no incentive for anybody to work" is not accurate...  this only affects marginal production.  I promise that you would be in the cotton fields if a gun was pointed at your head...  having nothing more than whip marks on your back to show for your efforts.  You would be there working with bells on.

You also skate around the word "earn" without defining it...  that's neat and all...  but working america has a complete and total disconnect and misunderstanding with the notion of "work" in the FIRE industry...  by your definition of earn, there can be no illicitly obtained wealth...  your notion is patently incorrect. 

The only thing the "work" that some produce is a devalued currency and a tax bill they'll be able to avoid.  Is the wealth from this really earned?

Fri, 12/30/2011 - 11:19 | 2021576 bbq on whitehou...
bbq on whitehouse lawn's picture

I will dissagree with you on your answer. "If there was no wealth gap at all, there would be no incentive for anybody to work."

People produce best when they do the things they love to do.

Most successful people i've known are so because they are working for more then a paycheck.

If someone is doing a thing they hate they will not stick around and do it for long.

People will always produce things. I would suggest that you are the one who needs to change rather then trying to change others so they fit in your box.

Nothing wrong with a world full of only mom and pop operations.

Fri, 12/30/2011 - 01:44 | 2021069 Platypi4Lyfe
Platypi4Lyfe's picture

I thought Ayn Rand was dead.. Holy fucking shit you guys are scary.

Thu, 12/29/2011 - 20:41 | 2020715 Meremortal
Meremortal's picture

"If not, what other method would you propose for redistribution?"

I don't know if the wealth gap has any effect and I don't care. I would be ashamed to ask my neighbor for money just because he has more than me at the moment. I'll go out and earn my own.

When I was poor, and boy was I poor, I looked up to wealthy people. Bill Gates is worth what, $50 billion? Who cares, other than to inspire me, Gates doesn't affect me or my ability to earn and build wealth. Opportunities abound in every economic circumstance. Many fortunes are made during economic contractions. I'm out looking for deals and yet prepared for various outcomes.

Banking on the hope that someone will hand me money doesn't seem like a viable strategy. Even if it happens, it won't be enough to do squat, so why bother.

 

 

Fri, 12/30/2011 - 11:27 | 2021594 bbq on whitehou...
bbq on whitehouse lawn's picture

Be carful of looking up to theives. 

All games need a high score i would suggest that money also have a high score. It wouldnt matter where you set its limit. Once it is set the game changes for the best.

Congradulations you won now here's a cookie, now if you would plaase get off the field so others can play. Thank you.

Fri, 12/30/2011 - 02:58 | 2021101 Prometheus418
Prometheus418's picture

I'm seeing the wealth gap as intentional.  I've got my own theories as to why this is useful for TPTB, but there are plausible scenarios in which this could be done with a specific goal in mind.

I'll advance one, and try not to overdo it.  Let's say that you believe in "peak everything" and you do not subscribe to the Mathusian solution to the problem, but would prefer to push for humanity to expand into space.  The problem is, people have been conditioned for half a century to expect relative comfort and ease as a birthright- hardly good stock for colonists.  

On the other hand, scientists and engineers don't function well if they are half-starved and worrying that their wife and children are in danger, and you need them to create the technology required for the expansionist goal.  It requires a caste society in which TPTB first aquire and then redistribute the wealth of the world unevenly, keeping the scientific and medical sectors healthy and protected, while the rest of the people are forced to adjust to an ever-deteriorating quality of life to both harden them against deprivation, and to make a chance at a better life more attractive, even if it is extremely dangerous.

I think all the moves are being broadcast, and this is the audtion for all of us.  A two-tiered society is coming, and there's almost nothing any of us can do about it at this point.  I can't presume to know the whole endgame, or the requirements for any given caste, but the writing is on the wall.  This is the time to stake your claim in the new system that is rolling towards us- from what I am seeing, the choice is going to be to join the technocratic elite, or devolve to pig-farmer.

Not even sure that that scenario is "evil" or incorrect, if true.  Sometimes uglyness is necessary to reach goals- Manifest Destiny certainly was no picnic on the prairie, and wildcatting for oil was not a safe and clean occupation.  It's going to suck hard for some of the people, and represent a real improvement for the rest.  It's happened before, and there's no reason why it couldn't be happening again now.  If you don't believe it can and will happen, ask a wheelwright what he thinks about it.

Thu, 12/29/2011 - 18:29 | 2020497 hedgeless_horseman
hedgeless_horseman's picture

 

 

Chart 4 is classic statistical propaganda:

 

Year on year

percentage change of

budget surplus (deficit) as a

percentage of GDP*

*Estimated

 

The percentage change of a percentage? Sounds like Liesman rationalizing his dick size. 

Thu, 12/29/2011 - 18:31 | 2020527 Jlmadyson
Jlmadyson's picture

Got to love some Liesman right.

Thu, 12/29/2011 - 18:21 | 2020505 Snakeeyes
Snakeeyes's picture
How about the housing market with the NAR data massaging? Even now, the world rallies on pending homes sales up 7.3% in November!!!!!

But really down 10% NSA and down 21% in the NE US.

Pending Home Sales Down -10% NSA in November (But Up +7.3% SA) – CoreLogic Estimates Residential Shadow Inventory at 1.6M Units

http://confoundedinterest.wordpress.com/2011/12/29/pending-home-sales-do...

Thu, 12/29/2011 - 18:21 | 2020508 LongOfTooth
LongOfTooth's picture

"America is at that awkward stage.  It's too late to work within the system, but too early to shoot the bastards."

Thu, 12/29/2011 - 18:31 | 2020526 vato poco
vato poco's picture

Ohhhhh, it's not too early. It just hasn't happened - on a scale of any size - yet. Sooner or later, they're going to run out of road to kick the can down. I thought 2011 would be the year, but they're more nimble than I gave them credit for. Getting close, though.

Thu, 12/29/2011 - 18:30 | 2020525 Cdad
Cdad's picture

It's that last chart that is the kicker.  VIX is so horribly mispriced just now...as signaled by T bill yields...that it is just plain stupid.

Yeah...no fear...Europe abot to pull the plug on a couple of its members, followed by a bank run/freeze, debt default, currency converstion chaos, etc...and there is no fear. Brilliant.  

Criminal syndicate Wall Street bankers sending every last false signal they can to ill informed sheep to buy low volume melted up equity positions to them...on the hope of a new year.  

Thu, 12/29/2011 - 18:32 | 2020529 xcehn
xcehn's picture

Beyond expressing absolute disgust and nausea at TPTB for their fiendishness, this music captures the 2011 mood:

http://www.youtube.com/watch?v=XR8LFNUr3vw

And this captures the 2012 mood:

http://www.youtube.com/watch?v=msyl5BxL9M8

 

Thu, 12/29/2011 - 18:35 | 2020534 Alex Kintner
Alex Kintner's picture

And 2011 in 3 easy words: "Screwed The Pooch".

Thu, 12/29/2011 - 18:38 | 2020541 Gene Parmesan
Gene Parmesan's picture

2012 in 2 words: Pucker Up

Thu, 12/29/2011 - 19:02 | 2020578 SilverRhino
SilverRhino's picture

2012 in three other words : Bend Over Bitchez

Thu, 12/29/2011 - 19:36 | 2020623 pavman
pavman's picture

2013 in 1 word: Frucked.

Fri, 12/30/2011 - 03:28 | 2021110 green888
green888's picture

Same words as used in foreplay "brace yourself"

Fri, 12/30/2011 - 13:25 | 2021938 vato poco
vato poco's picture

"Think of England"

Thu, 12/29/2011 - 18:50 | 2020552 mayhem_korner
mayhem_korner's picture

 

 

2011 in 6 words:  "Sleep, sheeple, sleep.  Everything is fine."

2012 in 6 words:  "Pre-collapse, 2011 in fact showed..."

Thu, 12/29/2011 - 23:55 | 2020983 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Watch your television for further instructions."

 

Fri, 12/30/2011 - 03:33 | 2021111 OldPhart
OldPhart's picture

"Bend over and grab your ankles"

Thu, 12/29/2011 - 18:50 | 2020559 DarkStarDog
DarkStarDog's picture

As long as folks are dumb enough to play stock market they will keep pretending and extendsing ...

Thu, 12/29/2011 - 19:18 | 2020602 kill switch
kill switch's picture

OT...FUCK IT..

 

 

All indicators point downward, I tell you. On the lobotomy box the other night I stumbled on what seemed to be sock puppets standing behind rostrums and hypnotically intoning “The American People...the American People...the American People.”

Puzzled, I speculated that it might be a troupe of performing autistics, but soon understood that it it was a debate among Republican candidates for the presidency. Why use people, I wondered? We could do it as well in software. Computer graphics, small recorded vocabulary, narcotic rhythm. Easy.

Someone named Romney was speaking. I checked the Wicked Pedia to see what manner of wight he might be. No surprises. Pampered rich kid, apparently not too bright, mediocre student in fancy private schools. A Mormon. Only one wife, though. A former missionary in France. It might have been worse. We could have bombed St. Denis.

I thought of all the Mormon missionaries I had seen in various countries, black-suited in Taiwan in August, peddling around like bicycle-borne undertakers, earnest, solemn, living in some eerie head-bubble inaccessible to outsiders. Oh help.

I'm going to become an ant, I decided. It would be less embarrassing. I don't know how to go about it, but there must be a way. I'll live in one of those high-rise mud nests in the Australian desert, except I think those are termites. How can they be termites with no wood to eat? Maybe they have it shipped in.

Among the American-Peoplers was Rick Perry, a Son of Texas in the mold of Bush II, dumb as turnips, inarticulate, a wing-nut Christian. I guess he's waitin' for thet ol' Rapture-suction to whoosh him up to drink Lone Star with Chay-suss. Poor Chaysuss. Rick wants to invade Mexico militarily, but only with the permission of the Mexican government. Thoughtful of him to ask.

Does he speak Spanish? No. English? Almost. Any experience outside the US? No. Doesn't need it. He has a direct line to God, who presumably speaks to him slowly, in words without too many syllables.

“The American People. The American People. We have to get America back on track. The Ordinary American. We have to get back to American Values. The American Dream.”

What the hell is the American Dream, I wondered? Seven credit cards maxed-out, living paycheck to paycheck, upside down on the mortgage in a boring house you don't really like, a job you hate but the retirement plan gotcha, your little boy buzzing on force-fed Ritalin, wife and daughter gobbling Prozac and everyone wondering, “Is this all there is?”

Actually, yes. Well, maybe a week at Disneyland with that stupid mouse.

Then Michele Bachmann, clueless evangelical daffodil. Complete ditz-rabbit. May God save us from Christianity. Brighter than Perry, but so is anything not actually inanimate. Not visibly intelligent enough to disqualify her for election, but maybe she is dissimulating. No experience in the world that I can see.

“America was not created to be a nation of followers,,” Romney told his followers. The key to election seems to be to tell Americans how wonderful they are, stroke them like cats, avoid puzzling them, and keep saying “The American Dream.” Tell them that we're a country of rugged individualists, just like Davy Crockett and Dan'l Boone. Probably we should wear coon-skin hats.

Somebody asked Romney, will he attack Iran if it doesn't obey Washington? “Absolutely,” responded this apostle of the Church of Latter Day Pattons. Japan's oil comes through the Straits of Hormuz, which his hearers believe to be a brand of beef stew. No oil, no Japan. No matter. “The American People....”

I'm going to slit my throat. Do ants have throats? A country of 315 million, nuclear-armed, able to wreck other countries it has never heard of in minutes, and the candidates sound as if they were addressing a warehouse of stuffed animals. This is the best we can do?

Yes.

The American People. The American Dream. We must turn this country around. Ok, then the East Coast would front on the Pacific. Why would that be better? It's probably some sort of real-estate scam.

Newt Gingrich. At least he's been to school, though he's smart enough not to emphasize it. The American People. The traditional values that made this country grate. Great. America is not a desperately sick over-policed welfare state collapsing into the Third World. No. Everything is as it always was. All we need is the Newt World Order and we will leap tall buildings at a single bound.

He too wants to attack Iran. The man has the military grasp of Tinker Belle. Grrr, bow-wow, woof.

Maybe instead of an ant, I'll become an aardvark. Though I'm not sure what one is. I need a change of phylum. What do cephalopods eat?

At least we no longer have that low-wattage high-school cheerleader turned moose-huntress. Stuffed animals fore and aft, I tell you. Contemplating Obama, I swore I'd never vote for another black president. After Bush II, I swore I'd nver vote for another white one. My options were narrowing. Now I'm thinking Obama or Herman Cain. Slick Empty in the great White Yurt on Pennsylvania Avenue is still corrupt and invertebrate, but now only starts small wars, as in Uganda. Cain makes pizzas and seems to be a human being. It's a novel concept but these are trying times. Besides they say he did sexually inappropriate stuff to some gals who want to be on talk-shows and get book contracts. Good for him. I'm going to start a group called Men Mad at Sanctimonious Priss Spigots. Cain can be a Founding Fondler.

Except for Cain (I think) and Ron Paul, the candidates all want to attack Iran. Rick Santorum too. I guess it's a manhood issue. Maybe we could buy them codpieces instead. Michele could get hers from Victoria's Secret, with sequins and flowers. Most of this crew were of military age during Viet Nam. How many served? Ah. Umm. Uh. Urg. A pack of martial dwarves without the tiniest freaking idea why the Pentagon can't beat Iran.

I couldn't take it. Before Ron Paul began to speak I went out for a gallon of Padre Kino red and an IV drip. I thought it might hold me over until I figured out how to become an aardvark.

After all, Ron Paul is tiresomely predictable. He would say hateful anti-American things. You know, we should get out of damn-fool wars, pick the military leech off the back of the republic, dismantle an empire that bankrupts the US, and end our perpetual state of martial priapism against Iran. Completely unelectable. A commie, I figure.

Thu, 12/29/2011 - 19:31 | 2020619 youLilQuantFuker
youLilQuantFuker's picture

Topical. +1

Thu, 12/29/2011 - 20:26 | 2020695 Yankee.go.home
Yankee.go.home's picture

+1 for saying daffodil

Thu, 12/29/2011 - 21:03 | 2020733 Pants McPants
Pants McPants's picture

You really should cite the original author (unless you are Fred Reed, in which case I'll apologize & tell you I'm a fan of your work)

Thu, 12/29/2011 - 21:05 | 2020737 kill switch
kill switch's picture

Thanx,,

 

Thu, 12/29/2011 - 21:28 | 2020754 YBNguy
YBNguy's picture

Thanks for that.

Fri, 12/30/2011 - 00:17 | 2021003 TheFourthStooge-ing
TheFourthStooge-ing's picture

Pants McPants knows the score:

You really should cite the original author (unless you are Fred Reed, in which case I'll apologize & tell you I'm a fan of your work)

Paul/Reed 2012

Fred's column "Let's attack Iran!" is a true gem. It sensibly explains why America would not only self-destruct by attacking Iran, but would actually self-excrete. (Picture America as a person in the international space station, with a pipe that leads to the vaccuum of space shoved up his ass, who, while chanting, "we're number one," and flipping off the universe, opens the valve on the pipe and proceeds to shit his entire body out through his asshole, failing to comprehend that he is most certainly no longer number one.)

http://www.fredoneverything.net/Graham.shtml

 

Sat, 12/31/2011 - 09:00 | 2023451 IrritableBowels
IrritableBowels's picture

...and cue Boilermaker

Fri, 12/30/2011 - 01:38 | 2021067 Reform1776
Reform1776's picture

You left out BUDDY ROEMER. Serious, check him out. Former Governor, 4 term Congressman. Harvard MBA. The only one with a Degree in Economics.

Clearly qualified, BUT CAN'T GET IN THE DEBATES! WTF? Instead we get the clowns you mention above.

Maybe because he is calling the system OPENLY CORRUPT?

 

Fri, 12/30/2011 - 02:04 | 2021081 Platypi4Lyfe
Platypi4Lyfe's picture

Pay to play baby, you no pay da toll you no crossa da bridge..

Fri, 12/30/2011 - 03:37 | 2021112 Reform1776
Reform1776's picture

Sad but true. When one follows the money that the politicians and PAC's "spend" on their campaign, where does it go? To Media companies. The conventional wisdom is that Buddy Roemer will not have any money to spend on commercials or media buys, so why give him a shot? Or why give him publicity, or let him debate, when he hasn't "paid" to play.

A couple of mitigating factors here are the Internet and all these "Fringe Blogs". Also, if he gets a few million people to give $50 to $100 each, that's a FEW HUNDRED MILLION. Add in Federal matching funds, that is starting to be some real $$$.

PS, He is CLOSE to qualifying for Matching Funds!

Stay tuned!

 

 

Fri, 12/30/2011 - 07:46 | 2021193 Scalaris
Scalaris's picture

Roemer needed financial support from a PAC in order to get into the "game". Private donations can only get you up to a point.

Fri, 12/30/2011 - 02:02 | 2021076 Platypi4Lyfe
Platypi4Lyfe's picture

Those debates are a lot better with a couple of percoset and an absinthe chaser. Yeah I know the absinthe is fake but wuddya gonna do, things are tough all over. The good part is you don't really miss anything when you black out.

Fri, 12/30/2011 - 08:12 | 2021209 Taint Boil
Taint Boil's picture

 

 

I was ready to hit the kill switch until I came across the Kill Switch. Smear my ears with jam and tie me to an ant hill - that was a good rant.

Fri, 12/30/2011 - 09:06 | 2021276 YHC-FTSE
YHC-FTSE's picture

After Mark Twain, I didn't think it was possible to be awed by anything an American wrote. I stand corrected. 

 

Enjoyed every word. Many thanks for your efforts.

Thu, 12/29/2011 - 19:21 | 2020606 virgilcaine
virgilcaine's picture

It was the Year of the Long Bond.

 

Thu, 12/29/2011 - 19:23 | 2020608 s2man
s2man's picture

2011 was a gift of time to continue preparing for the inevitable global financial (edit: and monetary) collapse.

Thu, 12/29/2011 - 19:27 | 2020614 youLilQuantFuker
youLilQuantFuker's picture

<-- I will buy a new car in 2012
<-- I will not

Quick poll. Go.

Thu, 12/29/2011 - 19:35 | 2020622 s2man
s2man's picture

I have never bought a new car.  I have only had one car loan in my life, when I was young and stupid.

Thu, 12/29/2011 - 20:15 | 2020678 youLilQuantFuker
youLilQuantFuker's picture

Take advantage of 0-0-0-0 on select models for well-qualified buyers.

Thu, 12/29/2011 - 20:36 | 2020711 Ms. Erable
Ms. Erable's picture

They have a similar plan for less-than-well-qualified buyers; same name, different details:

Zero job = zero interest, zero down, zero car (new, used, or otherwise).

Thu, 12/29/2011 - 21:05 | 2020736 vato poco
vato poco's picture

Quick, fast, & most informative little poll there. Ever wonder why we don't see stuff like this from The Ministry of Truth?

Fri, 12/30/2011 - 00:43 | 2021027 Captain Kink
Captain Kink's picture

so far, that's 2 of 40 respondants that will buy a car-- 5% ...how many potential car buyers are ther in the US?  50 million?  100?  don't we usually sell 12-15 million?  maybe there are 200 million potential buyers?  that would account for 10 million...still low, but getting there. throw in corporate buyers and you've got a typical sluggish year.

Fri, 12/30/2011 - 01:35 | 2021061 bill1102inf
bill1102inf's picture

get one now because after the default - shes a keeper!!!

Fri, 12/30/2011 - 01:37 | 2021065 slewie the pi-rat
slewie the pi-rat's picture

 

but captain, wouldn't this seem more...logical?

  • first, since beaming us down will be a deus ex machina, we can offer them some new kinda bullshit intergalactic reserves and new "money" and buy up all their assets in about a week, plus they will owe us for both the "reserves" and the "money"
  • then, we can give tham all raises, increased benefits and COLAs and
  • they will spend more on cars!

Star Ship Enterprise; captain's log; star-date: nowever

set phaZers on "print"!
beam us down, benzelbub!

Fri, 12/30/2011 - 12:41 | 2021783 TheFourthStooge-ing
Fri, 12/30/2011 - 01:35 | 2021063 bill1102inf
bill1102inf's picture

If you are going to wind up living in your car, might as well be a new one.

Thu, 12/29/2011 - 19:50 | 2020641 PulauHantu29
PulauHantu29's picture

I love charts. Thank you.

The FEAR graph correlates very high with gold and less so with oil.

 

Thu, 12/29/2011 - 20:14 | 2020677 cherry picker
cherry picker's picture

Today the headline said Japan is doubling its sales tax to help cover its debt.

These overpaid politicians who really have risk free emplyment as compared to the private sector, and I am not referring to Golden Parachute CEOs, find it easy to lay the burden of their incompetency on the shoulders of those who have had no say in their decisions and are least able to carry the burden.

I think I am going to tax the government for being me.

Thu, 12/29/2011 - 22:05 | 2020783 PulauHantu29
PulauHantu29's picture

Nice chart. When velocity picks up better head for the exit grab onto every hard asset you can grab.

Thu, 12/29/2011 - 22:13 | 2020798 youLilQuantFuker
youLilQuantFuker's picture

+100

Thu, 12/29/2011 - 20:31 | 2020702 fonzanoon
fonzanoon's picture

Next?

Canada Mortgage and Housing Corp. cautioned that Canadians need to be “vigilant” about growing levels of household debt, noting ramped-up use of personal lines of credit and increasing debt-to-disposable income ratios.

“Household financial vulnerability remains a serious issue that merits close attention going forward,” the CMHC said in its annual Housing Observer report published Thursday.

Thu, 12/29/2011 - 22:52 | 2020867 ucsbcanuck
ucsbcanuck's picture

And the average Canadian will tell you "It's all fine. We're not like that irresponsible crowd down there."

Complacency to the nth degree.

Thu, 12/29/2011 - 20:44 | 2020716 ebworthen
ebworthen's picture

Rivets popping in sub-zero waters, holds filling up fast, Captain says things are fine but Women and Children to the lifeboats "Just in case."

And the band played on, while free spirits were handed out and the deck chairs re-arranged under the shadow of the icebergs as the stars shone brightly.

Thu, 12/29/2011 - 20:57 | 2020725 aleph0
aleph0's picture

@Tyler : the "new" ZeroHedge

 

OMG ..I thought I'd come to the wrong  place.

Advertising everywhere !

You could have warned us .. LOL

Thu, 12/29/2011 - 21:03 | 2020734 blindman
blindman's picture

http://www.youtube.com/watch?v=V36MT5lAMrc&feature=related
Ron Paul This Speech Gave Me Chills
.

Thu, 12/29/2011 - 22:54 | 2020873 cherry picker
cherry picker's picture

You know why it gave you chills?

Same reason it probably did for me.

I don't ever remember hearing a politician speak like that before.

that is something you would hear from the likes of a Martin Luther King Jr.

Fri, 12/30/2011 - 00:09 | 2020975 blindman
blindman's picture

it is shocking to hear, someone in the feral government
use the language to communicate the truth rather than
use the language to confuse the many while he/she steals
the "money". this is what were up against. look at this mess ...
Deep Military Underground Bases etc.
http://www.youtube.com/watch?v=YEZPu0bjKyI&feature=channel_video_tit

somebody is getting ready for the worst. ongoing ....
aka missing 2 trillion on 9/10/2001. rummy was to
get back to congress on that, whoops.
aka matrix - zion.
.
solari k.a.f.
http://solari.com/articles/missing_money/
"Trillions of dollars are missing from the US government. What's going on? Where is the
money? How could this happen? Where are the checks and balances? How much more has gone
missing? What would happen if a corporation failed to pass an audit like this? Or a
taxpayer? Who is responsible for this? Would your banks continue to handle your bank
account if you behaved like this? Would your investors continue to buy your securities if
you behaved like this? Learn more in the articles below."
.
"After the announcement of the trillion dollars heist, 12 hours or so later, a ragtag
bunch "cave dwelling arabs/muslims" took out the pentagon wing housing the
accounting data along with the accountants/bookkeepers/budget analysts who were at their
desks at the time. Like "lucky" Larry Silverstein, G-d must have been watching
over Rabbi Dov Zakheim, who as Comptroller of the Pentagon was in charge of everything
from mere paper-clips, to defence budgets, to military hardware from 2001 to 2004."

[... FLASHBACKS ...]
http://www.de.sott.net/articles/show/234813-Day-Before-9-11-Rumsfeld-say...

Dov Zakheim and the 9/11 Conspiracy [Link]
.
http://www.barefootsworld.net/911/zakheim911.html
.
Absolutely INCREDIBLE DISCOVERY underground cities in turkey, ancient
http://www.youtube.com/watch?v=dxW26pAIG9M&feature=related
.
speaking of the matrix and zion. if you saw the third one did
the dystopian ending sink in? the parasitic machines won.

Thu, 12/29/2011 - 21:21 | 2020748 kito
kito's picture

Tyler, you should provide a link to the blog "the automatic earth"...they give you a shout out at least once every few posts........

Thu, 12/29/2011 - 21:30 | 2020756 fonzanoon
fonzanoon's picture

Kito let me ask you a question because I don't disagree with your deflation premise..If deflation were taking hold how are the equity markets holding up as well as they are? Woud'nt they be a victim of deflation too? I can't reconcile a steady (albeit volaitile) equity market with deflation that money printing could not combat.

Thu, 12/29/2011 - 22:48 | 2020853 bob_dabolina
bob_dabolina's picture

"If deflation were taking hold how are the equity markets holding up as well as they are?"

- Operation Twist

- FX liquidity swaps primarily with the ECB

- The abolition of moral hazard (people have an illusory sense of safety because they feel the FED will bail them out)

That's it.


Thu, 12/29/2011 - 22:58 | 2020883 kito
kito's picture

Equities plunge is coming......all things physical come first.....we are nowhere in the throes of it yet......

Thu, 12/29/2011 - 23:01 | 2020884 kito
kito's picture

Repeat post...new with the iPad...not crazy about it.....

Thu, 12/29/2011 - 21:42 | 2020767 youLilQuantFuker
youLilQuantFuker's picture

It's starting to feel like the Kuiper belt out here.

Thu, 12/29/2011 - 21:38 | 2020764 papaswamp
papaswamp's picture

All you need to know about the US...

http://bit.ly/uosUSn
http://bit.ly/sBiT0v
http://bit.ly/uuVuaL

Current account out of 197 countries…US is dead last…
http://1.usa.gov/sy06tU

Thu, 12/29/2011 - 22:17 | 2020803 Jim in MN
Jim in MN's picture

Here is another chart 10 or maybe it goes to 11: Real Disposable Personal Income Per Capita, thanks to Doug Short:

http://www.advisorperspectives.com/dshort/charts/indicators/DPI-overview.html?DPI-per-capita-since-2000.gif

Notice how we don't have *ANY* growth since this madness of Japanification began?  And a new slump in the most recent data?

Your headline for 2011: 

Americans Got Poorer.

Thu, 12/29/2011 - 23:16 | 2020915 Caviar Emptor
Caviar Emptor's picture

Right Jim. Americans got poorer and they know it too. Not in denial as in previous recessions. And therefore on the defensive, not taking on new debt, staying frugal wherever possible and not expecting improvements any time soon. 

Thu, 12/29/2011 - 22:40 | 2020849 Atomizer
Atomizer's picture

Paul Wolfowitz speech to West Point in 2001.

 

It should be worth your time to watch above link as an educational tool. Shortly after 9/11, the other group published this Goebbels piece. Today, this same group remains silent, yet continues to expand wars. When is the last time you heard someone on the MSM mention "Project for the New American Century." Answer, you haven't and will not! Bankers are too worried about maintaining the class warfare illusion between Democrat vs. Republican.

Thu, 12/29/2011 - 22:58 | 2020882 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

I would like to say that I am thankful to have discovered this ZH site early on in 2011, that I am thankful to all of you for the endless hours I have spent educating myself by reading your opinions and your thoughtful content and insight. I am very greatful for everything shared here. Happy New Years everyone.  

Thu, 12/29/2011 - 23:09 | 2020901 Atomizer
Atomizer's picture

Welcome to the fight club. May 2012 bring you happiness!

Thu, 12/29/2011 - 23:14 | 2020908 baby_BLYTHE
baby_BLYTHE's picture

Last semseter I earned a total of $4,500 working as receptionist at the University Financial Assistance office. Took the fiat as soon as I earned it and converted it into PMs, still up %wise since I made the conversion. I am in PMs for the long haul. Bought most in 2009-2010 plan to hold through 2015+. I don't care about nominal gains. I want my labor to be preserved in the medium of exchange I choose to transact.

Thu, 12/29/2011 - 23:59 | 2020986 San Diego Gold Bug
San Diego Gold Bug's picture

If you live in san Diego area contact me for a potential job.

Fri, 12/30/2011 - 01:31 | 2021058 bill1102inf
bill1102inf's picture

Good luck with that, its going to suck when you have to pay expenses after selling your PM's lower than what you paid for them.

Fri, 12/30/2011 - 01:35 | 2021062 TheFourthStooge-ing
TheFourthStooge-ing's picture

It only works out that way when using your variety of short bus math.

 

Thu, 12/29/2011 - 23:33 | 2020947 San Diego Gold Bug
San Diego Gold Bug's picture

Backed up the truck for gold and silver phyzz today.  I may be a week early but ....I may not.   Special shout out of thanks to the reader who mentioned comparegoldprices.com on this site.  Saved me some good money on gold eagles today!

Fri, 12/30/2011 - 06:50 | 2021177 forrestdweller
forrestdweller's picture

are you into silverselling or silverbuying?

Thu, 12/29/2011 - 23:54 | 2020981 xcehn
xcehn's picture

2011:  "Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts"

http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillio...

 

Fri, 12/30/2011 - 00:24 | 2021008 kekekekekekeke
kekekekekekeke's picture

can i ask some ZHers about some career advice for 2012

I am currently a teacher in the US salary is pretty terrible

I can get a job in September to teach in the UAE make $4500 tax free a month room paid for etc could do some serious stacking.  2 year contract but I can bounce when things fall apart or if it's not worthwhile

 

good idea or bad idea?

Fri, 12/30/2011 - 01:06 | 2021039 Atomizer
Atomizer's picture

108,000 for two years? What is your monthly living expense allocation? Is a private transport driver included in package? 

Do NOT follow this link or you will be banned from the site!