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Thunder Road Report On The Death March: Approaching A New Financial System

Tyler Durden's picture




 

From Paul Mylchreest's latest Thunder Road Report

Death march: approaching a new financial system

If you are reading this, you are probably a member of what the sociologists would term middle class (albeit at the upper end). This is precisely the segment of society which is poised to come off worst from what is coming. Here is a very disturbing idea. As this crisis develops, if you are an equity portfolio manager and you want to outperform the market, you are going to have to position your portfolio so that it benefits most from your own wealth destruction and that  of your family, friends and colleagues. Almost everybody is going to lose and there aren’t many places to hide. This is deeply unpleasant but you can blame the central planners. I’ve written about my own investing, e.g. gold and silver, equities in terms of Maslow’s Hierarchy of Needs, etc. In this Thunder Road Report (below) and going forward, I will discuss this middle class theme and highlight positions I have in individual stocks, etc. The only good thing that can  come out of this is a rise in awareness. It’s just awful.

In government bonds, the natural inflow of funds is approaching the end of the road – although there is probably one more short-lived and “wrong-footing” move downwards in the yield on the 10-year US Treasury. Increasingly, the flow of funds into government bonds is merely a direct reflection of newly created liabilities (debt) on the balance sheets of central banks like the Fed, ECB and Bank of England. Long-term US Treasury bonds are in their highest ever supply and at their highest ever price/lowest ever yield. Just another example of our “upside down” world.

Brief aside: besides (or maybe in conjunction with) inflation/currency devaluation, there is one other way the US could extinguish the Federal debt (US$15.8 trillion dollars when I just checked the real time national debt clock) just like that…gone! Used in isolation, almost nobody would suffer! And some people (probably less than 1%) would gain…and boy would they GAIN! Do you know what I’m talking about? Got any? Don’t know if it’ll happen, but at least it would cheer my wife up. She is still trying to work out how I could have forecast the Great Financial Crisis and made so little money out of it?

“You knew Fannie Mae was bust, you should have made millions.”

At least she didn’t add “you idiot”. She’s nice like that.

Meanwhile the price of the only financial asset with zero counterparty risk in the biggest global debt crisis in history has been “locked down” for months. There is a reason. It must move in volume to where there is an insufficient quantity prior to the denouement of the current financial system. A new system is coming with a bigger role for gold. You see “the man” isn’t stupid, even if some of his acolytes are. He has a plan. But there’s one “person” who could make things difficult for “the man”, so he had to be brought “onside” first.

Dr Kurt Richebacher was the publisher of “The Richebacher Letter” until his death in 2007. Paul Volcker commented that:

“Sometimes I think that the job of central bankers is to prove Kurt Richebächer wrong.”

Ain’t going to happen. Richebacher himself sagely remarked that:

“The only cure for a bubble is to prevent it from developing.”

Well it’s far too late for this financial system. Ten years ago, before the debt bubble became catastrophic, the free market could have resolved this issue. But Greenspan, the “Great Architect”, had to create yet another bubble in real estate and the “point of no return” was left far behind.

Then the helicopter-flying monetary psychopath took over and he is creating the bubble to end all bubbles in MONEY itself.

Cue a great comment from Damon Vrabel in “Harvard Lobotomies And The Disgrace Of The Economics Profession”:

“The truth is that economics has been designed to completely hide the monetary system that hovers above the economy. Economics assumes money is just a medium of exchange floating through the economy to facilitate a free market and generate wealth. At times that has been true, but today it’s probably the biggest lie of modern history.”

Let’s take most people’s current favourite “safe haven”, the mighty United (Socialist) States of America. This is the chart of the debt in the economy (total Credit Market Debt Outstanding) since the current Kondratieff cycle began.

 

There She Goes - debt in the US economy (US$bn)

 

Imagine telling people that you’d set up a Ponzi scheme and asked them to invest in it. They’d be very offended that you could take them for being so stupid. But you only need to look out of the window, or in the mirror. Salaries, pensions, mortgages, savings, etc. are all paid in…MONEY. And nearly everybody is “all-in.”

The Euro, or its purchasing power anyway, is clearly finished if they try to keep the system together, but what about the dollar?

The songwriter, Noel Gallagher, formerly of Oasis and now with his High Flying Birds, commented
that:
“There’s only one boy in this country who scares me and that’s Lee Mavers.”

Raoul Pal, of the Global Macro Investor, said in May 2012 that:

“All that is left (to buy) is the Dollar and Gold”

I f-----‘ love reading Raoul Pal’s stuff when I can get hold of it, which is incredibly difficult. He grew up (at least for a few years) near where I did and not far from Lee Mavers. I can’t recommend his work highly enough. I don’t disagree with him on much, but I do disagree with his view on the dollar (although he might be bullish on the dollar just from a trading perspective and he’s been right since May).

The two remaining “sacred cows” preserving the US dollar as the world’s reserve currency are:

  1. The belief that the Chinese will continue to buy US Treasuries; and
  2. The US dollar will maintain its monopoly on world trade.

Regarding number one, the Chinese have been sellers since the end of July 2011 (note the date). With regard to number two, have you noticed how China has set up currency swaps with nearly all of its trading partners? Have you noticed how Iran has been excluded from the SWIFT system and has begun selling oil to some countries in currencies other than dollars?

China has been preparing for dollar devaluation for nearly a year now, but hardly anybody has noticed. While everybody frets about the Euro, the dismantling of the US dollar’s reserve currency status is occurring within plain sight. I think a deal was done between the US and China in late Summer or early Autumn of last year. Have you also noticed how Ben Bernanke has used just about every unconventional method of monetary policy he’d discussed in his earlier writings on preventing deflation…bar one big one? Dollar devaluation. Let me repeat that, dollar devaluation.

We are heading into a truly mega-financial crisis. This is (another) classic “I hope I’m wrong, but…” report. I think the crisis is going to result in the transition to a new financial system as the current one implodes. Best guess is that it will be either happening, or perfectly obvious that it’s going to happen, within 6-12 months, i.e. within our investing time horizon.

This report connects a lot of dots and analyses each one of them. The dots include:

Dot - Loss of US AAA credit rating in August 2011
Dot - China lashes out at US “addiction to debt”
Dot - Peak in Chinese holdings of US Treasuries
Dot - China starts selling US Treasuries
Dot - Surge in the gold price in August 2011 followed by steep decline
Dot - Lock down of the gold price (using “paper gold”) ever since
Dot - Movement of large quantities of physical gold from London to Asia (notably China)
Dot - Collapse of MF Global
Dot - Radio silence on China being a currency manipulator
Dot - Exter’s Pyramid playing out in front of our eyes
Dot - Iran excluded from SWIFT system
Dot - BRICS countries signed the Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement
Dot – US granted China a 6-month extension on sanctions for buying Iranian oil (India already had one)
Dot - Revisiting Bernanke’s old speeches on deflation
Dot - Operation Twist
Dot - Comments by World Bank President, Robert Zoellick
Dot – BIS proposal to upgrade gold to a zero risk weighted asset in line with sovereign debt as part of Basel III
Dot - Comments by Robert Rubin (“consigliere” to the elite)
Dot - Recent meeting between Kissinger and Wen Jiabao
Dot - Why debt deflation now would paradoxically precipitate hyper-inflation
Dot – Demise of the middle class (theme)
Dot - Putting all of the above in the context of the fourth (and ongoing) price upwave of the last 1,000 years
Dot - How each of the three earlier price upwaves came to an end.

 

Full report below:

 

 

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Thu, 07/05/2012 - 17:26 | 2590221 nope-1004
nope-1004's picture

Banks are criminal.  Leaving your money with them is sheer stupidity.  What's next?  IRA and pension raiding.  Then banning PM's, on and on.  They will make and change laws as this intensifies, so there really is no place to hide, it's just a matter of choosing the least painful method.

 

Thu, 07/05/2012 - 17:44 | 2590254 LawsofPhysics
LawsofPhysics's picture

Correct. all economies are becoming more local by the minute.  This is why likeminded neighbors and local resources are so important.  Don't think you like/trust you neighbors, time to move.

What's that saying in realestate again, something about location?

Thu, 07/05/2012 - 17:46 | 2590264 Colombian Gringo
Colombian Gringo's picture

Globalization is a scam designed to destroy every one elses wealth in favor of a very small group of banksters..

Thu, 07/05/2012 - 18:57 | 2590386 DoChenRollingBearing
DoChenRollingBearing's picture

LIBOR is not just Barclay's, RBS and UBS.  It is the whole CARTEL of the 16 banks.  I write up everything I have been able to find about the LIBOR scandal, and a NEW nice scandal in the PIIGS countries:

http://tinyurl.com/clafwu6

Thu, 07/05/2012 - 19:31 | 2590502 DoChenRollingBearing
DoChenRollingBearing's picture

And tomorrow is Friday...

Are they going to save the best to release just before the weekend?

Thu, 07/05/2012 - 22:08 | 2590757 Muppet Pimp
Muppet Pimp's picture

The continuing scandals regarding the crooked financial institutions that run the world (aka TBTF or in some cases SIFI's) cement the importance of breaking up the monopolistic banks.  The libor scandal is simply another wedge that provides a real chance for TPTB to go after them and dismantle them (RICO enforcement actions notwithstanding).  No, I am certain that with an upcoming presidential campaign to be funded by these crooks that not a peep will be heard of such talk by our bought and paid for politicians.  My point is that the time is here to dismantle these behemoths, and their is sufficient dirt to make it happen if TPTB were so inclined.  Fingers remain crossed that some statesmen will step up around the globe now that there is additional substantial proof of collusion to defraud (in this case) the entire world who rely on the integrity of those posting the basis for trillions of dollars in financial products.  Diamonds testimony and the email communication that has surfaced clearly indicates to anyone who cares to pay attention that these 'for profit' centers of power have the best interest of themselves alone, screw the honest hardworking people of the planet, they have bonuses to steal for one another.  (Steps down from soapbox)

 

Here is an excellent video from Steve Keen I wanted to share:

http://www.debtdeflation.com/blogs/2012/04/16/inet-presentation-minskian...

He nails it IMO.  His conclusion (Jubliee of some sort) is certainly a debatable topic, but short of that, Steve is on point big time.

The social "science" of economics is going to change, period.

Fri, 07/06/2012 - 05:12 | 2591094 Element
Element's picture

This is bullish for US equities right?

Thu, 07/05/2012 - 18:00 | 2590276 MillionDollarBonus_
MillionDollarBonus_'s picture

The new financial system will be a compassionate one. One where consumers are simply not able to make bad choices, because they will be illegal. One where derivatives like options, futures and swaps are a thing of the past, and speculators are tried for their crimes against humanity. A committee of compassionate, caring and selfless regulators will be delegated the responsibility of looking after us, and they will be given the right to 

1. Punish us if we make the wrong choice

2. Reward us for making the right choices

It's essentially a CBT approach. Positive reinforcement for good behaviour, like supporting green technologies, and negative consequences for making choices that contradict the preferences of the regulators. One of the major issues with adult life today is that there are no parents or teachers to guide us and tell us right from wrong. Children have caregivers, but who do adults have? I would argue that the role of the government is to BE OUR PARENTS as adults. This is the ultimate purpose of the progressive revolution.

Thu, 07/05/2012 - 18:05 | 2590309 NumNutt
NumNutt's picture

Fuck your "progressive revolution"!

Thu, 07/05/2012 - 19:11 | 2590460 I think I need ...
I think I need to buy a gun's picture

"we need a system that works for everyone" rev al sharpton

Thu, 07/05/2012 - 21:35 | 2590709 economics9698
economics9698's picture

OMG MDB that was fucking awesome!!!  This dude is brilliant.

Fri, 07/06/2012 - 03:08 | 2591041 BigDuke6
BigDuke6's picture

I'm a big fan of MDB too. But its all going too far.

His posts now are followed by a parade of post-orgasmic ZH'ers smoking a cigarette and saying 'Wow - how was it for you?'

And thats just what the evil snake eyed genius wants....

Fri, 07/06/2012 - 07:03 | 2591135 Element
Element's picture

There are worse trolls out there BD6.

I spoke to a tragically pervert, corrupt and moronic woman today, who said she worked for a, "Not for profit resource-management company".

She had started the conversation by asking me if major mining project 'X' was having a negative effect on the cost of living in the area? I thought that a rather odd question and I said no, it was not having such an effect on the community, it was buffer by all the other supporting and corroborating economic activity and was leading to a general surge in economic spin-offs and a rise in the number of people benefiting from it.  Which is when I asked about her profession.

So when she told me, I was immediately thinking "wtf did she just say?".  So realising there's something was very wrong with this verbal description of who she worked for, I started to quiz her like; how can a resource company also be a not-for-profit company? 

She immediately says. "oh, our resources are the natural-resources",

I see ... so who do you do this 'work' for?

"Oh, mostly we work with Govts, we do some other fun stuff with the public, but mostly with govts."

Ok, so what does that entail?

"Well, we try to find new ways to influence the public perceptions."

So in about one second I've seen the bigger picture; AH-HA! ...a Govt-sponsored parasitic radical Greenie propagandist, is getting paid the money from my own pocket, to make Govt political propaganda, to try and get me, the parasitised one, to perceive things the way she would prefer, on behalf of the Govt ... and in my public best-interests, mind you.

So she starts spieling of this class-A-crap, and sums it up with the term, "Sustainable Futures".

So I seem a bit cynical and unimpressed by this and say, "oh, so that's the catch-cry huh? ... you know, people are kind of getting tired of all that sort of talk, as they've had this stuff thrown at them for about 20 years now, and they're really getting turned-off by it all at this point".

So she says, "oh that's the old catch-cry, we're about to start using the new one - 'Resilience'."

I kid you not, watch for this word BD.

So at that point I've really had all I'm going to take from this fucking idiot, but I want to keep it cool, so I make a pained sound and wince a bit and go; "Oh no! There not going to destroy another word are they? .. don't they realise that all these sorts of words have a shelf-life of about 2-months?

Now she's finally suspecting that, just maybe, I may not be all-aboard her train to crap-fest land, and starts dissembling about how her job's made "complicated" by this fact, and that; "Yes, this is now our challenge, how do we come up with new ways to affect people's perceptions, and how do we get them to respond positively to that message, that is one of our challenges".  

So her "not-for-profit" Govt-funded 'job', as a natural "resource management company", turns out to actually be just one of the people and companies who come-up with new ways to get us, the tax-payers, to gullibly stupidly believe (and to make a long story, short), that mining and development are bad, and must be stopped, and that ultra-left greenie idealism is a real political policy alternative (which explains her initial loaded-question to me, about the impacts of mining development on the community ...).

I kid you not.

As I remember BD, you're an Aussie too right?

Well, that's your tax dollars, hard-at-not-working mate!

Frankly, the MBDs and other wee trolls in zh have nothing on this level of automated centralised perversity and profound intellectual corruption, plus the pursuit of pre-meditated derailment of the public's economic interests ... and all being done at great public expense.

And if you're really good, they'll give you a small tax-refund this year (so that you feel you're #winning).

These are the ideological maggots our own Govt is showering with the money from our best productive efforts, simply in order to mind-fuck us all the more with their idiotic psychobabble and harmful degenerating prescripts.

And there are dozens of courses at our universities producing parasitic brainwashed cretins like her by the hundreds, every year. 

The system must be crashed, smashed and rebuilt, and all the useless perverse gibbering cretins like her ... "re-educated".

The more I come across people like that, the more I realise we're going to have an incredible clash and radicalisation occurring over coming years because ordinary working people are going to wake up to snakes in the grass like that, and will totally reject the entire current political class as the financial shit-storm finally hits the fan.

Fri, 07/06/2012 - 09:17 | 2591488 marathonman
marathonman's picture

You mean she's a community organizer?  Wasn't that our current President's starting job?  It's just too awesome to not laugh at the folly.

Thu, 07/05/2012 - 22:29 | 2590799 sablya
sablya's picture

Yeah, the great financial system to come, will be a kinder, gentler financial system.

 

no one can buy or sell unless he has the mark,

that is, the name of the beast or the number of its name.

(Rev 13:17)

 

Oh yeah, no doubt about it, MDB.  The financial system will be so nice.  

 

those who would not worship the image of the beast to be slain

(Rev 13:15)

 

Mmm, yeah, sounds so nice.

Fri, 07/06/2012 - 00:58 | 2590967 rocker
rocker's picture

Aren't we already told that the "U.S. Financial System is the Best in the World".

Jamie Diamon said he works for America. CNBC: "We have the best shirt of all."

LMAO  What problem do you speak of ???

Fri, 07/06/2012 - 03:15 | 2591045 LongBalls
LongBalls's picture

You can't make a run if you can't get your money! Celebrate what this means about truth. Do not fear.

Fri, 07/06/2012 - 03:47 | 2591059 StychoKiller
StychoKiller's picture

"We need a system where EVERYONE works!" -- StychoKiller

Thu, 07/05/2012 - 19:11 | 2590461 I think I need ...
I think I need to buy a gun's picture

"we need a system that works for everyone" rev al sharpton

Thu, 07/05/2012 - 21:33 | 2590705 Mike in GA
Mike in GA's picture

and what would Al know about 'work'?

 

 

Thu, 07/05/2012 - 19:53 | 2590544 sickofthepunx
sickofthepunx's picture

all revolutions are progressive.  never heard a revolutionary say "let's torch this bitch and go back to the way things were"

Fri, 07/06/2012 - 09:19 | 2591497 marathonman
marathonman's picture

Sure you have.  There have been plenty of coup de tat.  One general replaces another general.  Usually in the banana republics, but not necessarily.

Thu, 07/05/2012 - 21:35 | 2590710 BKbroiler
BKbroiler's picture

Fine work MDB, one of your best.

Thu, 07/05/2012 - 18:07 | 2590312 BandGap
BandGap's picture

I don't often comment on your post but - I laughed, I cried, I wet myself.

The beauty of your effort is that I have very liberal friends that would nod and smile at these words. Then I would laugh, then cry, then shit myself. Good day to you sir.

Thu, 07/05/2012 - 18:08 | 2590314 TheCanadianAustrian
TheCanadianAustrian's picture

I swear, reading your posts while imagining them as a speech delivered by Leslie Nielsen in Naked Gun is better than sex.

Thu, 07/05/2012 - 18:46 | 2590389 CPL
CPL's picture

That's exactly how I read them as well...

 

Dead pan, straight faced while twenty impossible things happening in the periphery...weird.

Thu, 07/05/2012 - 19:57 | 2590564 Will To Live
Will To Live's picture

The ultimate Oedipus complex.

Thu, 07/05/2012 - 20:42 | 2590639 mick_richfield
mick_richfield's picture

It's hard for me to read his stuff, but you know why, Hapsburg?  It's because the truth hurts.

Oh sure, maybe not as much as jumping on a bike with the seat missing, but it hurts!

 

Thu, 07/05/2012 - 19:03 | 2590438 ihedgemyhedges
ihedgemyhedges's picture

What is this "sex" you talk about?

Signed: Married man (18 years in the system)

Thu, 07/05/2012 - 21:39 | 2590667 cbxer55
cbxer55's picture

Things that make you go hmmmmm!

Left hand, or right?   ;-)

Fleshlight, better than the real thing!

Fri, 07/06/2012 - 06:18 | 2591132 Tortuga
Tortuga's picture

Uh, are you open to a re-evaluation? I mean, I'll read it again but; there's no way.

Thu, 07/05/2012 - 18:09 | 2590316 Dr. Sandi
Dr. Sandi's picture

 

I would argue that the role of the government is to BE OUR PARENTS as adults. This is the ultimate purpose of the progressive revolution.

But my father never loved me and my mother didn't know how. I want NEW PARENTS.

Thu, 07/05/2012 - 18:27 | 2590350 lasvegaspersona
lasvegaspersona's picture

MDB

cuz some folks is so much smarter than uz?

Thu, 07/05/2012 - 19:03 | 2590436 Al Huxley
Al Huxley's picture

Well done MDB, your best, most biting post ever.  I love the whole 'government role is to be our parents' thing.  One comment - the take is always the 'benificent government out to look after us', but I'd really like to see some explanations as to how the TBTFs also have our best interests at heart and they and their fearless executives are working long hours to protect us from ourselves and make this a better place for everyone.  Would love to see your take on that, give it some thought...

Thu, 07/05/2012 - 19:06 | 2590443 SWCroaker
SWCroaker's picture

I hope you don't have children.  Punish them if you judge them wrong; reward them if they choose your option.   Sounds very Pavlovian.  Maybe you wish to have your offspring grow up to be good doggies?

A tin-foil hat wearing Libertarian (okay, I forget the exact phrase; you omitted it in this post for some reason), might instead choose to gradually encourage self determination in children as they age.  Sort of ease them into the habit of making their own reasoned choices.

Frightening thought, I know.

 

MDB, to your success, you do what you do so well that even when I know that you pose, I despise you for pulling it off so convincingly...   May the caricature that you are burn in hell for eternity, and the jester behind the caricature be well satisfied in a job well done indeed.

Thu, 07/05/2012 - 19:53 | 2590549 nmewn
nmewn's picture

"MDB, to your success, you do what you do so well that even when I know that you pose, I despise you for pulling it off so convincingly...   May the caricature that you are burn in hell for eternity, and the jester behind the caricature be well satisfied in a job well done indeed."

Couldn't have said it better myself...but I still junk his ass.

Just sayin, widely known truth first, then satire.

Thu, 07/05/2012 - 19:06 | 2590447 TraitorsHang
TraitorsHang's picture

Your username might as well have been "Dominique Francon".

Thu, 07/05/2012 - 19:14 | 2590469 lincolnsteffens
lincolnsteffens's picture

Holy shit!!! Who is this idiot. Maybe he is the guy developing  propaganda programs to re-educate the American people in the FEMA camps. This is a test run to see what can be used effectively on people who would prefer to follow their own decisions when they wake up in the morning in stead of Uncle Samie giving you a wake up call at the proper time on your phone and tell you what to do next. It is obvious we can not be trusted to decide if we should comb our hair first or pee first. 

This drivel is too idiotic to be genuine. Someone is getting his rocks off driving ZH readers crazy.

Thu, 07/05/2012 - 20:51 | 2590648 i-dog
i-dog's picture

Dude ... if you can't see through the satire then you probably can't be saved anyway! I'll explain:

He usually includes at least one clue to trigger the cognitive dissonance that should alert any drowsy reader to wake up and see it for what it is. The more savvy ZH regulars automatically get a chuckle...while red-blue-team pom-pom wavers throw the vilest insults at him (that's how they roll!).

Overall, his posts very cleverly highlight the need to read any opinion -- whether from a collaborator or an assumed patriot -- with a critical eye and brain engaged!

To educate newbies, it would be better to point out the clue - or the self-contradictory statements - than to resort to childish name-calling.

I have only ever junked him when he has failed to include a clue...and very early on awarded him the 'Golden Zero' for sucking in the highest number of junks and vitriolic knee-jerk responses ever seen on ZH.

Join the awake!

Fri, 07/06/2012 - 16:17 | 2593179 ceilidh_trail
ceilidh_trail's picture

i-dog, nailed it!

Thu, 07/05/2012 - 21:21 | 2590688 Bananamerican
Bananamerican's picture

i dream of a day when MDB posts show all green on ZH....

Thu, 07/05/2012 - 22:17 | 2590777 Michael
Michael's picture

Then ZH could merge with and change its name to Huffington Post.

Thu, 07/05/2012 - 19:19 | 2590478 WhiteNight123129
WhiteNight123129's picture

MDB this latest comment of yours, is absolutely surreal. My hat is off to you... from Judas

http://4.bp.blogspot.com/-KUQHsBLKfVM/T-NsAiPVVMI/AAAAAAAADss/HpKolerFNK...

 

Thu, 07/05/2012 - 19:23 | 2590489 Short Memories
Short Memories's picture

LOL
Sounds like 1984's "Ministry of Love" :)

Thu, 07/05/2012 - 19:43 | 2590523 Glasnost
Glasnost's picture

The government is my parents.

 

The government wants me to shoot myself.

That is the 'right' choice.

The consequence of making the wrong choice is being shot.

The 'wrong' choice is to not shoot myself.

Therefore if I make the wrong choice, I will be shot.

 

You neglected to accurately mention how exactly your...brilliant(ly idiotic) idea will work.

Thu, 07/05/2012 - 19:49 | 2590536 MillionDollarBogus_
MillionDollarBogus_'s picture

Me thinks your mother severly dominated you, well into adulthood.....and you enjoyed it.

 

 

Thu, 07/05/2012 - 19:51 | 2590543 Glasnost
Glasnost's picture

+10000000000

Thu, 07/05/2012 - 20:01 | 2590567 Will To Live
Will To Live's picture

Again: The ultimate Oedepus complex.

Fri, 07/06/2012 - 07:18 | 2591169 Element
Element's picture

I suspect the point is we should not be talking about this worthy blog post, let's talk about MDB comedy BS instead.

Thu, 07/05/2012 - 20:07 | 2590577 Vendetta
Vendetta's picture

You're high

Thu, 07/05/2012 - 21:26 | 2590681 4 wheel drift
4 wheel drift's picture

FTS fuck this (your post) shit......

this mentality is what leads to increase the membership of the free shit army.......  (freeloaders)

indeed, given all the cheating, lying and all the rest of the crap continues, (which chances are that it will) since the so called 'middle class' has no spine, hence these regulators you speak of, will have their way....

well....   i suppose i shall become a bum....  who cares.....

 

amazing how ayn rand had it so correct as described in atlas shrugged.

Thu, 07/05/2012 - 21:35 | 2590711 AchtungAffen
AchtungAffen's picture

That's a very paternalistic oppinion. I'm not so sure the financial system of the future will be like that. Specially because "collapse" means a decrease in complexity. Without enough complexity, central decision taking becomes harder.

My hope is that the new system will be more based on reality. A moral despise of worthless papers. Probably not for fiat money, but yes for financial papers like derivatives. Probably a new understanding and loathe about debt. People will avoid going into debt, as the generation from the Great Depression was.

And I really hope the economy becomes more like village style. Local, functional (no superfluous stuff), less advertising, less marketing, radically less growth (I really hope for a 0% growth economy) - an end to Bernais style of PPRR, like clothing "to reflect your interior being" and smokey mirrors like that; we might go back to dressing similar to each other as it used to be 70 years ago). And mostly, based on trust. Because money was born out of mistrust. In the village people don't trade for money, they only do that when there is no trust. I hope for an end to unproductive economic activies (or should I say "counterproductive") like paper trading and speculation. Probably a moral repulsion on the idea of unlimited capital accumulation.

And what would be best of all, specially is the crisis is big enough to destroy really old institutions, an end to the stupid christian idea of mankind being beyond nature. A final acceptance that humans are animals, no different from the rest. At last humans being put into their place. Probably a new animist pseudo-religious thought where divinization would take the form of nature.

That would be a Utopia. I doubt it's possible with 7 billion people and 10 times (or more) notional value in worthless paper than the world's GDP. But well, give a crisis big enough and both those variables would be reduced badly. Not that I think a big die-off is cool. But well, it's time to pay the bills, to be accountable. Humans escaped natural selection and natural enemies through technology. But humanity wasn't responsible enough with that acquired power, and fucked like rabbits. It's payback time.

Thu, 07/05/2012 - 21:47 | 2590732 razorthin
razorthin's picture

Well done.  This is one of the few times the satire shines through.  Many here believe you are all satire, all the time.  But I think you at least half believe most of the sh!t you post.

Thu, 07/05/2012 - 21:54 | 2590747 Bicycle Repairman
Bicycle Repairman's picture

Isn't this what we have right now?

Thu, 07/05/2012 - 22:07 | 2590764 XitSam
XitSam's picture

I am hereby ignoring MDB_ threads.  There is no time left to spend on either drivel or satire.

Fri, 07/06/2012 - 07:18 | 2591172 Element
Element's picture

Amen to that

Fri, 07/06/2012 - 10:05 | 2591657 Chaos_Theory
Chaos_Theory's picture

Progressives (and their "opposition" on the right) prove there is nothing new under the Sun. 

IMO, at the core of their "progress" is nothing more than the original Utopia, Plato's Kallipolis from "The Republic" from ~360 B.C.  The elite view themselves as bred and trained to be the Guardians and even the Philosopher-Kings of Books V through VII.  The vast majority of the citizens are nothing more than the "producers" who must produce, pay the taxation that supports the auxiliaries and the guardians, and obey.  The auxiliaries provide the city's protection and must be bred and trained to be patriotic via the "just" lie of the Myth of the Metals.  The Jacobins, Marx-Lenins, Maos, and modern watered-down Western Socialism just added tech, scale and the mask of modernity to the original dialogues (and drop that quaint Plato idea that the Guardians can't pursue personal wealth) . 

Sad thing is they may actually believe to their very soul that they are just and their enemies are evil right-wing Sophists of Book I and II, who believe morality a myth and all that matters is their own advantage (although the banksters certainly seem to fit that mark).  The truth is both wings of the Utopians are perfectly content to fight over who gets to place their foot on everyone else's throat under the cloak of "the greater good."

Apologies to any Indian, Persian, Chinese, Sumarian, or other Bronze Age o Neolithic societies that may have had their own concepts of Utopia long before the young Hellenes came of age. 

Thu, 07/05/2012 - 18:59 | 2590424 Seer
Seer's picture

No effort required on the "raiding" part, as people are "voluntarily" pulling money in order to keep from falling off a cliff.

But, really, it's all been one huge anomaly.  The "wealth" was never really there (yes, some early participants in the Ponzi managed to "get theirs" [older generations]), it was all fictitious.  Should be no surprise to see the house of cards fall down.

Sat, 07/07/2012 - 04:02 | 2594343 Western
Western's picture

Indeed. We should just give up, obey laws. That's what laws were meant for, right? Obedience?

Thu, 07/05/2012 - 17:32 | 2590236 Zola
Zola's picture

The wife bit : "why did you not make more money ?" is the perfect illustration of why there are so little women in the liberty movement. Women JUST DONT CARE, they just want a provider to give them security and comfort. For that, they are more willing to compromise with the evils of the system that to fight it like men would do. Junk me all you want but i think this is a fundamental feature of what is happening in front of our very eyes. Men and Women ARE DIFFERENT. Anyone arguing the opposite does not live in reality 

Thu, 07/05/2012 - 17:38 | 2590251 reader2010
reader2010's picture

All women are Basically Whores, as Marc Faber used to say.

Thu, 07/05/2012 - 17:51 | 2590275 magpie
magpie's picture

No, they are all socially responsible lesbians with an IQ of 150.

Thu, 07/05/2012 - 17:54 | 2590277 Dr. Sandi
Dr. Sandi's picture

Damn, the quality of the users on this site constantly amazes me.

In the way a huge steaming pile of dog shit on the sidewalk amazes me.

Thu, 07/05/2012 - 18:26 | 2590342 Sudden Debt
Sudden Debt's picture

everybody has his say here bro. everybody.
and don't judge him on one comment, that's superficial.
and I'm a woman lover :)
Woman with kids go for security. that's the most beautifull thing in the world as they protect the family just like a man must do. there's actually not enough of it in this world.

Thu, 07/05/2012 - 18:33 | 2590359 DogSlime
DogSlime's picture

He just judged an entire gender and basically said they're all the same and stated that anyone who disagreed doesn't live in reality.  He's entitled to his say for sure, but surely fight club means that those who disagree are equally entitled to have theirs, yes?

Nothing wrong with responding to a highly superficial statement with a superficial reply.

Thu, 07/05/2012 - 18:57 | 2590420 akak
akak's picture

Stop hyperventilating, MA'AM, and being such a fool.

Anyone with any sense can clearly see that Zola merely made a generalization --- a generalization which is factually correct, incidentally.  It is disingenuous and idiotic to even suggest that he was stating, or even implying, that EVERY woman fits his categorization.  But to argue that there are NOT differences, overall, in how men approach politics, and governmental power, as opposed to women is simply absurd.

Thu, 07/05/2012 - 22:38 | 2590813 sablya
sablya's picture

A guy sits next to a woman on an airplane.  He looks very wealthy and talks to the woman for a while.  Then, he asks her is she would sleep with him for $1 million.  She says, yeah!  Then, he asks her if she would sleep with him for $50.  She gets offended and says, "what kind of woman do you think I am????"  He replies, "I believe we've already established that madam, now we're just haggling over the price."

 

Thu, 07/05/2012 - 19:48 | 2590531 Shizzmoney
Shizzmoney's picture

Woman with kids go for security. that's the most beautifull thing in the world as they protect the family just like a man must do. there's actually not enough of it in this world.

Funny, along with attraction, "security" used to mean "can ward off animals and gather food" back in human's prehistoric beginnings.

Then, "security" became little green pieces of paper.  It didn't matter if the guy even hit a woman; she would just sue him.  +EV ROI!

The irony? Now because of the Bankers' action, we may go back to a world where a woman's idea of security isn't what hedge funds he runs, but what gun he holds.

Thu, 07/05/2012 - 18:19 | 2590333 El Tuco
El Tuco's picture

Gezzuss dude, why would you call your own mother a whore? WTF is a matter with you?

Thu, 07/05/2012 - 18:34 | 2590360 Diogenes
Diogenes's picture

He knows his family better than you do.

Thu, 07/05/2012 - 20:58 | 2590653 i-dog
i-dog's picture

You owe me a new keyboard! Seriously funny shit every day on here....

Thu, 07/05/2012 - 22:14 | 2590774 Hive Raid
Hive Raid's picture

Your mom refused the pink pill.

Now you refuse the red pill.

Hopefully your dad refuses the diamond blue pill.

Thu, 07/05/2012 - 17:45 | 2590260 DeltaDawn
DeltaDawn's picture

Hey, now. I am female and a liberty lover. I cannot convince any of my male or female friends to take a serious look at our situation. The
normalcy bias infects 95%.

Thu, 07/05/2012 - 18:55 | 2590415 Bobportlandor
Bobportlandor's picture

Always exceptions to the rule. I before E except after C.

Females are just WEIRD that way.

Thu, 07/05/2012 - 21:30 | 2590664 i-dog
i-dog's picture

Some of the most awake commenters on here are females [waves to CA, MsC and the others]...as were some of the most effective resistance fighters of the American Revolution and the WWII French Resistance. Certainly, the [mentally] toughest and most resourceful members of my family, and those of most close friends, have been the females.

They'll survive long after the 'smart' males have flung the last handfull of poo at each other.....

 

[edit] Upon reflection, I can't think of one female troll or collaborator who comments on here.

Thu, 07/05/2012 - 21:31 | 2590702 Ignatius
Ignatius's picture

"Here I must make a note. While I was desultorily attending graduate school, I met in the coffee shop one day a miss Myrna Minkoff, a young undergraduate, a loud, offensive maiden from the Bronx. This expert from the universe of the Grand Concourse was attracted to the table at which I was holding court by the singularity and magnetism of my being."

-- Ignatius, The Journal of a Working Boy

Thu, 07/05/2012 - 22:12 | 2590765 i-dog
i-dog's picture

Sorry, dude. The females in my family and acquaintance are ladies in about the 0.3% ... and largely responsible for why their husbands arrived/stay in that bracket!

I've never heard an expletive uttered from a single one of them. That's not what makes one tough.

"One has to be tough ... not act tough" -- i-dog

Thu, 07/05/2012 - 22:29 | 2590802 Jacks Wasted Life
Jacks Wasted Life's picture

Rip Marla.

Fri, 07/06/2012 - 10:41 | 2591802 Chaos_Theory
Chaos_Theory's picture

I didn't see the poster attach any values on the level of female intelligence, just motives. 

Hell, one could make the argument in a world where women have historically been physically at the mercy of stronger men, especially in terms of violence during wars and other chaotic events, security would be a damn smart motivation.  Add in the genetic need to protect offspring, and it doesn't make a bad argument for security being a prime motivator.  The solution for the liberty side is to convince as many women as possible to become expert marksmen (oops, how about sharpshooters?) at the gun range.  Once the most liberal woman in the world knows her MOA is less that a few inches, she'll be empowered to know her security and that of her potential children can reside in her trigger-finger, and not the Motherland.  Then concepts of liberty will take hold.

As for ladies posting here, my guess is if they come here in the first place they're not exactly part of the herd.  Minus political partisans of course.

Thu, 07/05/2012 - 19:54 | 2590552 Kyron95131
Kyron95131's picture

hey now, im a male liberty lover. I can't convince of of my pier's, friends, or even family to do the same.

The more successful they are the deeper thier head is buried in the ground, and i have been trying now for over a decade... easily...

but on the bright side I've picked out some nice theme music to play after i have given my soap box speeches while the vilification ensues!

http://www.youtube.com/watch?v=x8W4DEMUSeM 

lol's 

Thu, 07/05/2012 - 22:18 | 2590778 11b40
11b40's picture

Maybe you have wasted too much time trying to explain things to your piers. ;-)

Thu, 07/05/2012 - 22:29 | 2590789 akak
akak's picture

I wonder if he was wearing Docker's while trying to explain things to his pier's?  After displaying such a slip, one might almost accuse him of harboring a grudge against them.

Thu, 07/05/2012 - 17:48 | 2590269 Dr. Sandi
Dr. Sandi's picture

This is also the primary reason men don't marry other men.

Thu, 07/05/2012 - 18:47 | 2590393 unrulian
unrulian's picture

they do in canada

Thu, 07/05/2012 - 19:38 | 2590514 The Disappointed
The Disappointed's picture

No Dr. Sandi,
The reason so many men in the USSA are forbidden from marrying other men is that a bunch of Rome based child rapists own crooked US elections.
Ingorance may be bliss for mythical 'heterosexuals', but gay men watch each others' backs.

Fri, 07/06/2012 - 01:07 | 2590975 Prometheus418
Prometheus418's picture

Don't be an idiot.  I'm no cheerleader for Catholicism, but the whole child-rapist thing is an obvious and ham-fisted smear job.

Somebody owns our elections, but it isn't the Vatican.

Thu, 07/05/2012 - 17:54 | 2590281 Kali
Kali's picture

Wrong!  Tells me more about you and the women you choose to be with.  Men think with their dicks.  Given the opportunity between a freedom loving REAL woman and one that is stupid, superficial but looks like a $5000 a night whore, guess which one YOU picked?  Idiot.

Thu, 07/05/2012 - 18:50 | 2590402 unrulian
unrulian's picture

let me guess...you're american and by real you mean fat....i'll go with 5k whore...lot's of them

Thu, 07/05/2012 - 18:10 | 2590303 akak
akak's picture

You are correct, Zola.

It may be a generalization, but nevertheless very true: woman are undeniably as a group MUCH less concerned about freedom, and philosophical matters, and the "big picture" than are men. It is much more the soccer moms, and women in general, who are those most easily whipped into a fear-driven state of frenzy about "terrorists" and "security" and "For the Children!" propaganda than are men.  Compromise and cowardice seem to be in their nature.

Thu, 07/05/2012 - 18:11 | 2590320 Dr. Sandi
Dr. Sandi's picture

Somebody has to keep the family and the community going while the assholes march off to battle each other.

Thu, 07/05/2012 - 18:16 | 2590326 cowdiddly
cowdiddly's picture

I got a little experiment to discount your hypothesis. Go up to the next twinkle toes gay guy and spit in his face. He will merely ask what you did that for and call you an asshole.  Now go try the same thing on my wife and spit in her face. Buddy you are fixing to lose your eyesight as she scratches your eyeballs out.

From my vantage point at least, it is not the women in this country who need to grow a pair. It is the so called MEN.

Thu, 07/05/2012 - 18:18 | 2590331 akak
akak's picture

I never said anything denying the existence of PMS and raging bitches.

;-)

Fri, 07/06/2012 - 07:39 | 2591192 Element
Element's picture

bitches bitchez!

Thu, 07/05/2012 - 19:31 | 2590501 Au Shucks
Au Shucks's picture

yes, you're absolutely right... as is Zola.  Doesn't mean women do not provide humanity with an equal (or more) amount of value than men, just means what it means and is empiracally true in the lives of near all who read this post.

Thu, 07/05/2012 - 18:26 | 2590344 DogSlime
DogSlime's picture

@Zola

I live in reality.  From my observations there are as many men as women who have their heads buried in the sand.  My sister is preparing for a complete collapse of society - she bought 40 kilos of flour a couple of weeks ago and regularly takes inventory of her stock of water purifying tablets and dried supplies.  My girfriend is also braced for a worst-case scenario.  Both are utterly enraged by the misery that the financial elite and the corrupt/cowed governments are causing to ordinary people.  Both are prepared for the worst.  Few of my male associates take any notice of what is happening.

Your gender generalisation suggests to me that it might be you who is living in a distorted reality.  You seem to have so much faith in your cock that you're using it in place of your brain.

Thu, 07/05/2012 - 18:46 | 2590362 akak
akak's picture

Both innumerable polls and well documented voting patterns demonstrate again and again that women consistently place more value on "security" (so-called, as provided by the state) and an expansive role for government than on individual rights and freedom of choice (except in the womb!) as compared to men, and in general value security more than they do liberty.

This is not to say that a significant number of men in modern Western societies do not share these feelings and concerns (socially and politically self-destructive and misguided as they are), but the "liberty gender gap" cannot logically or factually be denied.

Thu, 07/05/2012 - 19:42 | 2590520 lasvegaspersona
lasvegaspersona's picture

The 'security' provided by the State works well for a while. Then it gets kind of off kilter and the price women pay is to suck on the Commissar of Safety's special safety apparatus.

For men it is bit more uncomfortable. 

Thu, 07/05/2012 - 20:02 | 2590569 Cathartes Aura
Cathartes Aura's picture

ahhh, damn, I was going to pass this red flag up, but oh well, here goes. . .

if indeed voting patterns & "polls" (those stats no one trusts when reported in the media but often get trotted out whenever "women" are the topic) show that "women consistently place more value on "security" - PERHAPS the fact that one in three women suffer rape and/or sexual abuse at some point in their lives - which means if it isn't YOU, you most likely know a friend or relative who has - MAY just tip the scales to desiring more "security" from the "liberty" of abusive men.

http://search.zonealarm.com/search?q=one+in+three+women+rape%3F&lan=en&t...

choose your source.

as to the "liberty gap" - MAYBE women are put off by the compromises the chaps allow in personal body sovereignty issues, making guns & pot a priority for "liberty" and not the right to make decisions about her own body vs. the State making laws to remover her choice.

here's one of my favourite "woman prepper" blogs:

http://farmwars.info/?cat=869

the rest of you trolling for lulz - the females of the world thank you for your loyalty to yer bros.  trust me.

Thu, 07/05/2012 - 21:56 | 2590749 Jena
Jena's picture

That's a really interesting blog, CA, thanks.

Thu, 07/05/2012 - 21:20 | 2590687 Jena
Jena's picture

All of you who find contemporary women lacking but who have sons and daughters are certainly raising your sons to have higher standards than you did when you settled on a mate, and teaching your daughters to be more independent and stronger mentally and physically than your wives, right?

Thu, 07/05/2012 - 19:03 | 2590430 smiler03
smiler03's picture

@ Dogslime, I hate doing this because it feels like wasting space but here goes....

+1000

Thu, 07/05/2012 - 19:49 | 2590537 CPL
CPL's picture

You might want to store water as well.

 

Taps don't work without power. and I doubt those pills will clean raw sewage if filtration and processing cease.

Thu, 07/05/2012 - 18:52 | 2590408 Oracle of Kypseli
Oracle of Kypseli's picture

At Zola

If he knew and did not make money, how can you trust his conclusions and recommendation on his report? Sorry too late, you wil not recoup the lost opportunity by selling us something

Thu, 07/05/2012 - 19:52 | 2590545 Umh
Umh's picture

It's really fairly easy to see that a problem exist. The hard part is determining when the rest of the world will see the issue causing markets to collapse.

Thu, 07/05/2012 - 19:36 | 2590512 Seer
Seer's picture

"Men and Women ARE DIFFERENT"

No, you don't say?

Be careful, however, of lumping ALL women together.  My wife is Filipino and she can probably put most men here to shame in her intellectual abilities: and although she's small physically, she can and does do lots of physical work.  Oh, she left the Philippines because of the corruption: hauled her two pre-teenage kids with her and bootstrapped herself.

If men struggle with women and want them to be more like men then they should consider being gay or something (maybe sign up for the military where you can be surrounded by manly(?) men).

Words and action... my wife and I prefer action.  And I prefer the company of my wife.  It's great to be me :-)

Thu, 07/05/2012 - 21:40 | 2590722 Miffed Microbio...
Miffed Microbiologist's picture

Thanks Seer for a lovely post after a long line gender wars! I think the security issue in women is primarily biologically based but it can be over come. The primary problem, especially in younger or immature women is that safety/ security really exists and it can be attained by laws. For example seat belts. " Seatbelts save lives" was the rallying call to make it illegal not to wear them and I'm sure most women would have voted for any legislation requiring them to feel more safe. Well, seat belts can save more lives in many cases but what people don't know that they can cause many other serious injurys like disembowelment. Same with these enormous SUVs that are perceived "safe" yet have been proven to have a high risk of rollovers and fatal accidents, still women flock to them. After working in trauma for 8 years I figured out safety and security is an illusion. Yes Im cautious but no matter how well you plan life is still a crap shoot and one must eventually face it. I've seen horrible things happen to people who live "safe" lives. I'm sure if those people had to live over again they would choose a more rich, vibrant life rather than one based on fear.
I guess my point is is that women can have a natural tendency to be more fearful and, therefore, gravitate to security, illusionary or not. Men can often be overconfident, take wild risks and get themselves in serious trouble ( I wont go into all the lopped off appendages I saw in construction sites and they weren't women :-)) Perhaps we should all try to be more balanced in our inclinations and less disparaging. I think most women on ZH are,by default, not insecure and cowardly.

Miffed:-)

Thu, 07/05/2012 - 19:47 | 2590530 grey7beard
grey7beard's picture

>> Women JUST DONT CARE,

I'm not really a TV persons but I share a home so I am exposed to it.  On a segment tonight, there was a woman who owned a company with her husband.  The husband bilked investors out of $100M and got 30  years for his efforts.  The woman?  Not a day in the can.  Her take is she had no clue as to what was happening in the company.  Sure, you and your old man have skimmed $100M by the time you're in your mid 30s, and  you don't have a clue.  As usual, they share the take and the man does the time. 

Fri, 07/06/2012 - 00:22 | 2590933 Things that go bump
Things that go bump's picture

Someone has to raise the kids.  In-laws of my daughter were running an unlicensed pharmaceutical manufacturing company out of their basement.  He took all the blame when the bust came down so that their kids could be raised by their mother rather than by the state.

Thu, 07/05/2012 - 21:16 | 2590682 GlassSteagall
GlassSteagall's picture

Women = Obama is our Protector and Provider. The Republicans major problem area in the swing states is the women vote ... the Democrats have convinced women that the Republicans are their arch enemy. I am not a fan of either party because they are all bought and paid for, but I side with the Republicans (against Obama) as the best chance the US has of slowing the slide to either corporate cronyism or collective socialism.

Thu, 07/05/2012 - 17:34 | 2590239 reader2010
reader2010's picture

In the end, they will blame all the troubles on the politicians instead. A whole new system is coming but it's going to be even worse than the current one for joe-sixpacks.

Thu, 07/05/2012 - 17:34 | 2590241 becky quick and...
becky quick and her beautiful mouth's picture

if i had good money, i'd pay bernanke to show up at the next congressional testimony and just proclaim "my god, it's full of stars!" and then just walk out.

Thu, 07/05/2012 - 18:27 | 2590349 Sudden Debt
Sudden Debt's picture

or "game over guys..." walking away....

Thu, 07/05/2012 - 17:35 | 2590245 slaughterer
slaughterer's picture

Todesmarsch: gute Metaphor.  

Thu, 07/05/2012 - 17:35 | 2590246 buzzsaw99
buzzsaw99's picture

Chuck Fina.

Thu, 07/05/2012 - 18:12 | 2590322 Dr. Sandi
Dr. Sandi's picture

I believe H.L. Mencken was really Mark Twain.

Thu, 07/05/2012 - 19:16 | 2590472 cossack55
cossack55's picture

I'm certain the Pancho Villa cut a deal with Ambrose Bierce and sent him back to the US as H.L.M.

Thu, 07/05/2012 - 19:40 | 2590518 Seer
Seer's picture

Power corrupts.  It's not just the govt (look at the big churches).  But, yes, it IS a waste of time trying to reform power.

Thu, 07/05/2012 - 17:46 | 2590266 NooooB
NooooB's picture

I'll just leave this here...

http://www.washingtonpost.com/business/countrywide-used-a-special-vip-lo...

This should calm everybody down....

Thu, 07/05/2012 - 17:50 | 2590273 Dr. Sandi
Dr. Sandi's picture

Shouldn't you put it in a paper bag first, then light it and ring the doorbell?

Thu, 07/05/2012 - 17:56 | 2590289 NooooB
NooooB's picture

Ahhh! Somebody get's me....

Thu, 07/05/2012 - 17:49 | 2590271 Cursive
Cursive's picture

Read the post, not the report.  Sounds like Paul Mylchreest is suggesting Red Money is on its way?

Thu, 07/05/2012 - 19:55 | 2590553 bigkahuna
bigkahuna's picture

I would agree with red money - it would seem that we could lock out a bunch of illegal commerce that way - along with counterfeiters. I did not get that though, unless the red money would be part of the devaluation - then the sociopaths in charge could kill a couple birds with one stone.

Though red money would cause raw currency deflation right?

Thu, 07/05/2012 - 17:51 | 2590274 cardis
Thu, 07/05/2012 - 18:00 | 2590295 Dr. Sandi
Dr. Sandi's picture

Ahhh, 1720!

The year John Law's Mississippi Company bubble collapsed. An important event in Europe at the time, and with major ramifications here in the U.S. as well.

The "investors" probably should have bought gold instead.

Thu, 07/05/2012 - 18:07 | 2590311 magpie
magpie's picture

I believe the ponzi originator himself invested in fine art, since the harsh capital controls even affected him.  

Thu, 07/05/2012 - 21:57 | 2590750 Oldrepublic
Oldrepublic's picture

seems the British cornered the market on scams!

Thu, 07/05/2012 - 17:55 | 2590286 kito
kito's picture

the natural inflow of funds is approaching the end of the road....

 

boy if i had a silver dollar for every time i have heard that over the past umteenth years, id be rich!!!! 

Thu, 07/05/2012 - 18:01 | 2590301 Dr. Sandi
Dr. Sandi's picture

Actually, I probably DO have a silver dollar for every time somebody said that in the past umteenth years. I'm not rich yet, but I'm a hell of a lot less nervous about the day it turns out they were eventually right.

Thu, 07/05/2012 - 18:03 | 2590305 kito
kito's picture

everytime i think, thats it!! the 10 year CANT possibly go lower, im proven wrong....very frustrating...........

Thu, 07/05/2012 - 20:52 | 2590650 pods
pods's picture

Look at it in geopolitical terms:

The USSA gov needs a low rate because the interest at higher rates will swamp us.  We are issuing new debt at a torrid pace, hence the interest needs to keep going lower so as to allow us the same aggregate interest payment.

If you think about what our interest payment goes to if rates rise appreciably, it becomes obvious that it will not only spell the end of the FRN, but probably the US gov, and along with it goes the FED and the cartel banks.

So they will fight for low interest like a cornered animal.

With China getting out of the game, it only becomes more and more imperative for the rates to stay low.  I would say that 3-4% would be the Maginot line myself.  So there would be some room on the upside, but they cannot allow reversion to the mean.

pods

Thu, 07/05/2012 - 22:19 | 2590779 XitSam
XitSam's picture

I'm curious as to what you envision when you say, "the end of ... the US gov."

Fri, 07/06/2012 - 06:07 | 2591124 Escapeclaws
Escapeclaws's picture

I understand what you are saying about keeping interest rates low, etc. That particularly harms old people and retirees, however. When viewed from a different perspective, the effect these low interest rates have on old people is to offer them up as a sort of burnt offering to the gods--here I am attempting to relativise the situation a little with respect to time and history, based on the idea that there is an essential equivalence on a deep level between the two points of view. Low interest rates are just the way we offer burnt offerings to the gods to keep the harvest coming in--to keep the "economy" from collapsing, in modern parlance. Maybe we should just dump old people onto a great continuously burning bonfire. I'm sure a large hopper could be constructed for that. We could even engrave the escutcheon of the Fed on it and give Ben the honor of the first pull of the handle.

Thu, 07/05/2012 - 18:03 | 2590298 Peter Pan
Peter Pan's picture

The way these turkeys are going they are going to make North Korea look like a safe haven. Or is that where we are headed?

Thu, 07/05/2012 - 18:04 | 2590307 Dr. Sandi
Dr. Sandi's picture

You're right, N Korea probably IS a safe haven. They haven't been involved in the International Ponzi Scheme, at least not that anybody hears about. So a monetary collapse there probably won't look like much of anything other than business as usual. Maybe a few less gifts from their neighbors.

Think North Korea and it's easier to see what a monetary collapse will look like on the back side.

Thu, 07/05/2012 - 19:50 | 2590538 Seer
Seer's picture

Cuba went through a collapse following the demise of the Soviet Union.  I don't think that many countries could do as well as they did: helps to have a warmer climate I suppose.

And of course, the Russians... in the West we were pretty much shielded from the horrors that occurred there during that collapse (Dimitry Orlov has some pretty good commentary discussing what went on there).  I suspect that "our" (the entire global economy) collapse will be similar, except that there won't be "investors" on the sidelines swooping in as was the case with Russia: no safety nets.

Thu, 07/05/2012 - 21:40 | 2590720 delacroix
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north korea prints some pretty good green dollars. they have been, for years.

Thu, 07/05/2012 - 18:01 | 2590302 q99x2
q99x2's picture

There's a really good ponzi running that a friend of mine just cashed out 30 grand on. He started with 250 dollars. I haven't put anything in yet but might this weekend if it hasn't crashed yet. What the heck I have some in the stock markets too. It is a toss up as to which goes first.

Thu, 07/05/2012 - 18:05 | 2590308 youngman
youngman's picture

I agree a new reserve currency is on its way....I think China will be the lead ..but Russia and Brazil will follow....it will have some sort of gold backing....I think that is why they are buyers today....and I also agree some deal was struck last fall....as gold has not moved hardly at all and China was given a prime dealer account at the Fed...very strange...very strange.....I also think laws will be passed or new taxes on the ownership of gold...probably turning us all into criminals...so the Feds can confiscate it all....they will try to prop up the dollar at the end of its global life...and they will do stupid things...to save themselves...good luck all...we are going to be in some very trying times in the near future....

Thu, 07/05/2012 - 19:24 | 2590492 Bollixed
Bollixed's picture

China getting its' currency to be reserve status is just another head-fake. SDRs are probably more likely to hold that title in the future.

And China getting a direct window at the Fed most likely means they'll have a way to dump T's without spooking the flock.

Thu, 07/05/2012 - 21:43 | 2590716 dwdollar
dwdollar's picture

The value of fiat money is based on how many productive slaves accept it and its makers (central banks, nation states, etc.) as legitimate authorities. When all Western currencies are blown to hell, the productive slaves will be wary of accepting any new currency by the same old clowns. What the non-productive slaves and non-productive elite accept during the critical period of a new currency formation is irrelevant. SDR's will probably be worthless as they are mostly a special agreement between privileged non-productive bankers.

Thu, 07/05/2012 - 18:15 | 2590328 janus
janus's picture

sweet...janus luvs thuder road (& rauol pal).

so, paul, let me show you the road on which janus was raised-up:

http://www.youtube.com/watch?v=gVmU_Ql8uI0

never make it back from copperhead-road,

janus

Thu, 07/05/2012 - 18:16 | 2590329 Mr.Kowalski
Mr.Kowalski's picture

Insolvent nations, insolvent megabanks, insolvent Central Banks, unpayable CDS's written by the trillion-- this is not how to run a financial system, folks. But is it within the Wit of Man to some up with something better ? If so, how would we get from here to there ? Being rather overcaffeinated this morning and having made promise on last week's post to present my Answer To All, here we go. 

 

http://themeanoldinvestor.blogspot.com/2012/07/great-reset.html

Thu, 07/05/2012 - 18:21 | 2590336 gwar5
gwar5's picture

Spot on that Western elites are traitors, complicit in demise of the West. Obama is just the cherry on top. A monetary system is coming that will punish the (banker induced) largesse of the West. The bankers had a vested interest in running up sovereign debts and will walk away. All the bankers had to do to stop it all was say no to their puppet politicians, but it has been their gravy train.

 

China wants resources. UN Agenda 21 will force relocate the people off productive land when SHTF. Destruction of the West will let China get everything on the cheap for the next 100 years. The fraudulent green movement is just part of that. The international financiers and globalists know no national loyalty and will move their operations to the East, having pillaged the West.

Elitist billionaire Maurice Strong, Canadian oil man, former UN Sec. Gen., confirmed asshole, is already living in China.

 

Thu, 07/05/2012 - 19:33 | 2590506 AurorusBorealus
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Obomney is the trigger man for the gangster mob that controls Western finance: nothing more and nothing less.

Thu, 07/05/2012 - 20:39 | 2590634 Seer
Seer's picture

He's the fucking Court Jester, here to distract the masses.  The REAL buttons are pushed behind the scenes and it's got nothing to do with the POTUS.

Thu, 07/05/2012 - 21:22 | 2590689 Lednbrass
Lednbrass's picture

Yep, the Presidency now is just the pretty girl on stage to distract the crowd from what the magician is really doing. Its a sad state of affairs when the supposedly highest office in the country is nothing but a focal point to enable misdirection.

Fri, 07/06/2012 - 00:07 | 2590925 AurorusBorealus
AurorusBorealus's picture

That court jester orders hits and assassinations globally every day via drones.  He also commands the allegiance of the Department of Justice and the Department of Homeland Security.

Thu, 07/05/2012 - 21:52 | 2590742 Oldrepublic
Oldrepublic's picture

UN under Sec Gen

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