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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 - 18:21 | Link to Comment CoconutSauce
CoconutSauce's picture

HOW DO I GET THE FULL REPORT? I know its not out yet, but id love to read it. 

Thu, 07/05/2012 - 18:38 | Link to Comment Diogenes
Diogenes's picture

You want the advice of someone who gets his trading ideas from pop songs and 2 year old Zero Hedge posts?

Thu, 07/05/2012 - 18:49 | Link to Comment kito
kito's picture

no, much better to get it from goldman sachs and cnbc...........

Thu, 07/05/2012 - 19:20 | Link to Comment FutureShock
FutureShock's picture

Available next week to institutional clients or via direct payment   - It helps to read it all

Something is a comming but not in 6-12 months,  are you kidding me. Look at Europe procrastinate. Target and Wallmart shoppers and the 90% have no gold. Do your Kardahian watching friends have any? Cash for Gold shops have sucked up a ton, doubt confiscation will happen.

One thing I am learning is that fear sells better than even sex.  Trust one day will the most valued item you can't directly buy sell or trade.  

Want some stock picks? dollar stores, Tyco/ADT security, guns, GE and Honeywell for alarm systems, Safe companies - crime is comming. 

 

 

Thu, 07/05/2012 - 18:39 | Link to Comment Rene-Paul
Rene-Paul's picture

Red Money: From November 1968 through August 1974 I was in Vietnam [soldier/civilian].The Military currency was MPC, military payment certificates. At unannounced times the MPC was changed.  I personally have experienced Red, Blue and Green MPC. Only a certain dollar value could be converted. MPC was also a competing currency with the Vietnamese currency the Dong, sometimes referred to as the Piaster or "P". Overnight the Black Market holdings in MPC was worthless. On base the money changers paid a high premium to have there overage covered.  I learned at a young age to prepare accordingly.

 

Thu, 07/05/2012 - 20:59 | Link to Comment pods
pods's picture

So if one wanted some company in country with a local, would she get offended if you asked "How much Dong?"

Glad you learned your life lesson early!

pods

Thu, 07/05/2012 - 18:39 | Link to Comment cardis
cardis's picture

hum... maybe here?

 

http://www.youtube.com/watch?v=tTvjRyv0c5M

 

+ 0.46 for popcorn&rye

Thu, 07/05/2012 - 18:48 | Link to Comment boooyaaaah
boooyaaaah's picture

Reminds me of a book

How to profit from the comming devaluation -- Harry Browne

Written 2 years before Nixon's devaluation

And became a best sellar then

 

http://archive.mises.org/4752/harry-browne-rip/

 

Thu, 07/05/2012 - 19:57 | Link to Comment boooyaaaah
boooyaaaah's picture

The devaluation was to pay a debt. The debt  of the Vietnam war. Which could be called the last fighting War of World Wars 2 ---Japan/Germany being the first --- Communist Russia/China the second

The Vietnam war --- which although corrupt --- may have stopped Communist spread into Thailand, Singapore, Malaysia. We will never know the path not taken. At any rate the Supremacy of the US Military was shaken

But then after the devaluation and a decade (71-81) of stagnant growth and inflation then  high interest rates .Things settled down ---- and gold which topped 800 crashed back to 250 --- silver which topped 45 went back to 6

Then the  US re-asserted it's dominance not by Military might but by innovation. Reinvention. And Globalization of capiatlism.

As a result of taking on debt the 3rd world was brought out of the 1800's. The Bric nations, The Arabs, had something to sell and the US borrowed to buy it and at the same time financed global growth by pruchasing the future - Now

And now we relinquish our economic superiority just as before we relinquished or military superiority

Relinquished our crown or lost our crown --- who knows

But if we The US can keep and reignite the individual creativity we have nothing to fear --- the only thing that has been proven is that in order to maintain the world;s currency The US became something it was never meant to be

Banksters, financiers, proffesional rule makers, they do what they do best ---- but when they stop being a catalyst for freedom I think the US will reinvent itself or maybe  to quote ole Abe  " that this nation, under God, shall have a new birth of freedom—and that government of the people, by the people, for the people, shall not perish from the earth"

Thu, 07/05/2012 - 21:15 | Link to Comment Seer
Seer's picture

"The Vietnam war --- which although corrupt --- may have stopped Communist spread into Thailand, Singapore, Malaysia. We will never know the path not taken."

LOL!  Bad systems FAIL!  That ANYONE could think that Communism would spread isn't fucking thinking.  It was all BS, used to create the fascist ruling govt that we currently have.

Thu, 07/05/2012 - 21:32 | Link to Comment Lednbrass
Lednbrass's picture

I dunno, having met family members in the 80's who lived behind the Iron Curtain for decades I got the distinct impression that they thought it was pretty real.

Thu, 07/05/2012 - 21:54 | Link to Comment delacroix
delacroix's picture

viet nam war history, is meaningless, if you omit the heroin trade.

Thu, 07/05/2012 - 23:19 | Link to Comment i-dog
i-dog's picture

LOL! How much does writing revisionist history pay, anyway?

Are you a collaborator ... or just dim?

Thu, 07/05/2012 - 23:53 | Link to Comment reader2010
reader2010's picture

The Vietnam War and LBJ's Great Society had been used to transfer wealth from bottom up. The war was required to drag on for years and years without an end in sight, just like the current warz that got started in 2001. Debasement of USD was done via dirty float, and as the result, Asia was ordered to be industralized. Now, it's time for the big time! The decline of the West has been ordered to  accommodate that desire of the banking elite. 

Thu, 07/05/2012 - 18:52 | Link to Comment bad craziness
bad craziness's picture

Hi ZH.

Please for the love of god post these with a PDF link as Scribd fucks up my whole system.

Cheers

Thu, 07/05/2012 - 19:04 | Link to Comment rufusbird
rufusbird's picture

I like your ..."Long-term US Treasury bonds are in their highest ever supply and at their highest ever price/lowest ever yield."

We don't need no Stinkin Supply and Demand!

Thu, 07/05/2012 - 19:05 | Link to Comment Solon the Destroyer
Solon the Destroyer's picture

There's so many mistakes in the above article, along with subtle back-patting for predictions made without putting his money where his mouth is, that I could not recommend Mylchreest's report or himself as an investment advisor.

We is still a long ways away from the Treasury market seizing.  Yields can halve for near on forever (they won't, but they can keep it up for a long time, even at these low yields).  And other currencies will have to jump the shark first, which will of course continue the bull market in US Treasuries.

Still need a lot of feces flung in the fan before fiat asphyxiates itself.

Thu, 07/05/2012 - 21:18 | Link to Comment FutureShock
FutureShock's picture

Yup,  Sex used to be what sells now it is FEAR

 

Thu, 07/05/2012 - 21:18 | Link to Comment FutureShock
FutureShock's picture

Yup,  Sex used to be what sells now it is FEAR

 

Thu, 07/05/2012 - 21:32 | Link to Comment Seer
Seer's picture

"And other currencies will have to jump the shark first, which will of course continue the bull market in US Treasuries."

The USD and US Treasuries are like vampires, living only off of the blood of others at this time.  But, at one point the sucking sound will cease, that we can all be sure of.  Trying to nail the time is nothing but a distraction, we're really LONG past the point where people need to be getting on with getting on without.

Thu, 07/05/2012 - 19:07 | Link to Comment machineh
machineh's picture

'If you are reading this, you are probably a member of what the sociologists would term middle class (albeit at the upper end).'

So the only difference between the rich and other people is that they read different blogs?

Thu, 07/05/2012 - 20:16 | Link to Comment Umh
Umh's picture

You probably need to have more categories than just rich and other people. I can't even imagine some of my relatives reading here. I have a large extended family that cover the spectrum from jailbirds to rich and mostly between those two.

Thu, 07/05/2012 - 19:14 | Link to Comment sschu
sschu's picture

Dot - Why debt deflation now would paradoxically precipitate hyper-inflation

Just trying to wrap my thoughts around this "Dot".  The theory, as I understand it, is that Bennie will do anything, will eventually fly his helicopter to prevent debt deflation and that this printing will generate the hyper-inflation catastrophe.

He says we have 6-12 months.  Is there something else I am missing?  It would seem that the Bennie induced hyper-inflation will take longer than 6-12 months.  

Maybe I missed the post that explains to what he refers ...

sschu

 

Thu, 07/05/2012 - 23:32 | Link to Comment i-dog
i-dog's picture

 

"Why debt deflation now would paradoxically precipitate hyper-inflation"

I had to ponder it, too. First thought is that devaluing the debt will significantly increase the money-to-asset ratio in the economy ie. [high/hyper-]inflation.

"He says we have 6-12 months"

I disagree ... I say we have just 2-3 months until "everything changes". Red money, capital controls, etc.

Thu, 07/05/2012 - 19:21 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

I'm not really that concerned because the MASS ARRESTS you see elsewhere are coming soon to the U.S. Everyone from Obama and Brenanke, and over 1000 others will be in chains and orange jumpsuits soon. As sure as the sun will cross the sky, the MASS ARRESTS are coming... http://tinyurl.com/cd5cyjo/

Thu, 07/05/2012 - 19:48 | Link to Comment ATG
ATG's picture

Drake, Fulford and Wilcock peddled this fantasy for years.

CNBC permabulls with more credibility than these guys...;

Thu, 07/05/2012 - 20:41 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

Have you spent a day in the military or the legal profession? Thought not. The oath fakers will be separated from the oath keepers in the near future, period, end of story.

Thu, 07/05/2012 - 21:37 | Link to Comment Lednbrass
Lednbrass's picture

Ya know, things are so screwed up that Im not sure a military coup would be much worse- but legal profession?

If lawyers are part of the equation we arent going to improve a damn thing, they are a considerable problem. Of course if you are arguing that the military will start shooting some lawyers, there might be a ray of hope...

Thu, 07/05/2012 - 22:21 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

What do you call 10,000 lawyers at the bottom of the sea? A good start. But seriously, listen to the interview and get a clue. A solid understanding of the military and law would go a long way in understanding the legal basis for what's coming. Without actual military service and at least some significant self education in law and politics, most people will have little appreciation for the looming MASS ARRESTS.

Thu, 07/05/2012 - 21:42 | Link to Comment Seer
Seer's picture

Still looking for something that has some arguments that one would find in a meaningful debate.  If you're trying to communicate (and sell whatever it is that you're trying to sell) then you might look to improve your debate/communications skills.

Thu, 07/05/2012 - 22:25 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

Listen shitbird, you can stand aside with the women and children and let the men do the work. Less than 5% of American colonists sent the British Empire packing. It will take far less than 1% of American patriots to send our current administration and form of government to the slammer. The MASS ARREST are coming. Like most people here, you will simply be a spectator. I'm not selling anything here, just looking for some intelligent life instead of windbags like you.

Thu, 07/05/2012 - 19:32 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Get over it, modern civilization a Ponzi scheme that is.

Thu, 07/05/2012 - 19:45 | Link to Comment ATG
ATG's picture

Mrs Market going down on the middle class tomorrow.

Bet on it:

http://richcash8tradeblog.blogspot.com/

 

Not too late to trade the lease in on a Medicare Scooter...;

Thu, 07/05/2012 - 19:50 | Link to Comment Jake88
Jake88's picture

folks if we would all just stop responding to MDB he will go away. guaranteed. no narcissistic supply no MDB.

Thu, 07/05/2012 - 20:21 | Link to Comment Umh
Umh's picture

I wouldn't waste my time trying to organize this bunch. I find MDB's stuff boring except those time when his joke is close to what some people actually believe. The biggest complaint I have about it is that I have to wade through it and the replies to get back on topic.

Thu, 07/05/2012 - 21:43 | Link to Comment Lednbrass
Lednbrass's picture

Why do I want him to go away? Sometimes MDB is funny and watching all the noobs waste time on replies can be amusing also.

There has been a resident MDB type here for quite some time, before MDB there was Harry Wanger, and Math Man, Johnny Bravo with his shovel, and a couple minor ones in between.

I sometimes wonder if its the same guy. Johnny Bravo may have actually been as stupid as he pretended, Im still not sure on that one.

Thu, 07/05/2012 - 20:11 | Link to Comment lynnybee
lynnybee's picture

it was all a scam, preplanned & purposeful.    thank god i read on the internet.    thank god i listened .    thank god for Jim Willie.   STRING UP ROBERT RUBIN.     & thank god for silver & gold.

Thu, 07/05/2012 - 21:24 | Link to Comment DavidPierre
DavidPierre's picture

Jim Willie's latest...

911 BANK HEIST

As the years pass, the evidence mounts. The  www.ae911truth.org/  organization is expert and loud, the architects and engineers who provide expert testimony on the absurd official 911 story at the World be-Trade Tower.

A secretive Russian Bond valued at $240 billion was to mature the very next day, most of which were held in the Cantor Fitzgerald offices atop the tower. Those bonds could not be redeemed at maturity, a theft.

Nothing on the official story makes any sense, nor does it stand up to chemical scrutiny or to scrutiny from phsyics.

Costa Rica has a richly dotted landscape of very well informed people with all kinds of legitimate contacts, such from Secret Service friends, bank executive friends, ex-USMilitary types, slush fund managers, obscure types, and more.

My informed sources have been numerous that have shed light on the infamous event.

It was a grand bank heist that involved around $100 billion in stolen bearer bonds,  around $100 billion in stolen gold bullion bars, and around $100 billion in stolen diamonds.

The 911 event marked a coup d'etat of the United States Govt.

Their grip on power continues through to today. The true story will come out, all in time, like veracity bubbles working toward the surface. Those holding the lid on the actual events are reducing in number each year. My expectation is that the true story will come out as the inevitability of a USGovt debt default becomes evident and unavoidable, when the JPMorgan machinery fails in full view to uphold the USTBond tower. At that time, the new trade settlement systems, the new barter systems, the bypass to USDollar settlement, they will come into place.

Gold will be at the center of every new system. Much like how geophysics leads to iron forming at the core of a stable body, gold will form at the core of the stable financial body. But its price will be closer to $10,000 per ounce than $2000 per ounce.

Gold price charts mean little, when the enter paper system is in the process of imploding, first bonds, then currencies, then sham gold markets.

http://news.goldseek.com/GoldenJackass/1341518400.php

Thu, 07/05/2012 - 22:29 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

9-11 is just one of many justifications for the looming MASS ARRESTS and the virtual dissolution of our wholly illegitimate federal government. The traitors to the Constitution are not gods ro demons, they are simply men... men that put their pants on one leg at t a time... men that can be cuffed, stuffed, and locked away for good. http://tinyurl.com/cd5cyjo/

Thu, 07/05/2012 - 20:14 | Link to Comment GlomarHabu
GlomarHabu's picture

Let's get it on ..... Marvin Gaye ..... and Lawdy how I wish we would. I loaded the boat with gold and silver back in 2006,..... I'm gett'n older and I want a BIG payday, a new sports car, and a trophy 34DD, blonde girlfriend. Roll the fatty ..... in college (Floirda 66-70) we had a saying .... it was better to have some dope and no money than it was to have money and no dope.

Understand I just heard that from my friends.....Like ly'in Bill Clinton I never inhaled....just say'n.

Thu, 07/05/2012 - 20:14 | Link to Comment lynnybee
lynnybee's picture

nowhere to run, you say ?    NOWHERE TO RUN ? !    Then, how about nowhere to run for BILL CLINTON, ROBERT RUBIN, PHIL & WENDY GRAMM, BUSH 1&2, OBAMA .    I ain't running nowhere..... they should be the ones quaking in their boots running.

Thu, 07/05/2012 - 20:31 | Link to Comment SIOP
SIOP's picture

I dont get mad at ZeroHedge very often but when I read things like this at the end of intriguing articles, it really makes me mad!

"The rest of this Thunder Road Report will be sent next week to institutional investors who are clients via commission votes/direct payment."

I just got had by Zerohedge.  Hook line and sinker. Damn. I like to think of ZH as one of the few around that is more interested in reporting than making a buck. Am I going to go sign up and PAY hard earned money for this valuable article now that I'm intrigued? No. It just lost ALL credibility.

I also wish I could thumb down the whole article in the hopes of warning others not to waste their time.

Thu, 07/05/2012 - 21:36 | Link to Comment cbxer55
cbxer55's picture

Thumbs up! I've complained about this before. Sometimes you just need to cheat, and go right to the end of the article to see if you are going to be suckered into a half-ass report, then have to pay to read the rest.

I'll not read anything from Thunder Road again, it's on my blacklist.

Fri, 07/06/2012 - 00:36 | Link to Comment Seer
Seer's picture

I come here for the entertainment: it's theatre.  OK, I also come here for therapeutic reasons.

Anyone looking for "investment" information for free should really reconsider.  All that you really need to know is pretty easy to figure out.  If people want to profit off the misery of others (yeah, Jamie Diamon, take THAT! and he does what? he passes along any financial pains on to Muppets) fine, though that's not my style.

 

Thu, 07/05/2012 - 21:46 | Link to Comment Lednbrass
Lednbrass's picture

Well, you can give it a low rating if you so choose.

Not sure how you got had by ZH unless one of the Tylers are part of that group, it isnt like you are paying ZH if you subscribe.

Thu, 07/05/2012 - 22:14 | Link to Comment jomama
jomama's picture

lost all credibility?  

yeah, because there are so many other credible sources out there to rely on every day for cutting edge journalism. 

ZH is free, and the good people that work day in and day out contributing incredibly insightful material month in and month out is already an incredible bargain. 

i swear if people had nothing to complain about, they'd then complain about the dearth of things to bitch about.

Thu, 07/05/2012 - 20:32 | Link to Comment Lord Drek
Lord Drek's picture

Who among you can actually define the goals of the NWO monies powers?

And who among you believes that you'll be able to set sail with a treasure chest of PMs and escape this coming doom? When the elite say they want 95% of the population exterminated, they very likely posses the means to carry it out. You'll be vulnerable to whatever they release regardless of where you're hiding.

I'm not trying to burst anyone's bubble here--the thought of freewheeling it in a Mad Max scenario does hold some appeal--but the determined evil of TPTB is nigh on supernatural.

Thu, 07/05/2012 - 21:24 | Link to Comment ableman28
ableman28's picture

Look closely at that chart and if you have a good memory and are old enough then you will notice that debt took off just when Mastercard and Visa because commonly distributed through the population and easy retail processing options for charges became common place.

This curve also correlates almost perfectly with the long term stagnation in real wages which began with the war on unions (working people in general) shortly after Reagan came into office.  It is much easier to have your credit limited raised and leverage your income by making the monthly minimum payment than it is to ask your employer for a raise or join in workplace organizing to demand more.

Lenin used to say that capitalism will sell us the rope we hang it with.  More accurately we have charged the rope and hung ourselves.  

Credit at all levels is the real instrument of mass destruction.  

Thu, 07/05/2012 - 21:29 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

“The truth is that economics has been designed to completely hide the monetary system that hovers above the economy."

You mean keynesian economics.

Thu, 07/05/2012 - 21:35 | Link to Comment GlassSteagall
GlassSteagall's picture

Since 2009, I have been reading about the imminent demise of the US economy or the global economic system and yet to read anyone with a workable (and reasonably supportable and legal) strategy for protecting one's assets. I understand that precious metals would provide that medium, but I believe with the current governmental insanity, precious metals would quickly be confiscated and a high price would be paid for those keeping the metal secret. In a financial tsunami the TPTB will declare everything that will causes 'wrong way' market actions illegal (gold, silver, shorting, inverse etf's) with severe consequences for contrarians. Buying farm land would seem reasonable ... for those able to do this ... maybe buying food futures ... but this is still just a paper asset, which may evaporate in the collapse.

I do believe that the US dollar and US banking system will not fail until that of Europe, so we will (IMO) have a small window of opportunity to act ... but act in what way.

This being said ... any suggestions or counter arguments?

 

Thu, 07/05/2012 - 21:50 | Link to Comment americanspirit
americanspirit's picture

Things people really need- Food, water, shelter, medicine, fixing broken things, self-defense, sanitation, mental stimulation, security, hope. There is more but the list is short.

Absent armageddon there will always be those things that people need. be in a position to provide them and you are set.

Thu, 07/05/2012 - 21:55 | Link to Comment GlassSteagall
GlassSteagall's picture

Ok ... Thank you, but I have already have ample sheltered food, water, shelter, medicine, self-defense ... I have mental stimulation galore, security, and hope. But I am still greedy ... is they're any way to protect my assets which are currently in cash in banks.

Fri, 07/06/2012 - 08:40 | Link to Comment TK69
TK69's picture

Precious metal only work if people are actually trading it.  In order for the price of the metal to go up, people must be using the dollar in mass and buying that metal.  Hence supply and demand.  The problem is that too few people have the money to buy anything, let alone metals.  And if the world were to switch to gold over night, say all of the middle east nations price oil in Gold (which would destory their governments overnight) no one would have any gold to buy it. 

This means that a lot of distributions channels would shut down.  And Of course this would cause people money to be worthless, but the problem would be that too few people would have metals or dollars to pay for anything.  Money can only become what people have and are willing to trade.  At one time tobacco, meats, wheat, etc was currency in north America because colonist did not have silver so that they could have imports. OF course the colonist didn't need silver for imports because colonist could produce everything they needed, except for English tea of course. 

What you are seeing is the collapse pf the division of labor and of the state because people do not have any money. And if printing it worked that the soviet union would be around today and Cuba would not be calling for reform.

No,  What needs to happen immediately is to eliminate all property and income taxes, regulations, and regulations which that would free up a lot of debt and money for ordinary people and businesses.  But of course, how will social welfare be paid? There is not enough money now which is why they are borrowing money, and printing it, taking evn more capital out of the markets.

At some point the checks will bounce because too few and few people are producing things of value and have nothing of value to trade.   Even when the economy recovers there is just to much debt which takes money out of circulation. People are not borrowing enough money, thus growing the money supply, to support the current economy.

What is needed is a laisse fair economy, sound money, and the end of government regulations. 

Thu, 07/05/2012 - 22:14 | Link to Comment swanpoint
swanpoint's picture

China's air defenses are against the East. The US ICBM's point north. 90% of China's population is along the coast, most of which the Navy could take care of without ever having to spend a Marine.

Thu, 07/05/2012 - 22:23 | Link to Comment GlassSteagall
GlassSteagall's picture

That works since their response would be to eliminate Left Coasts on both coasts

Thu, 07/05/2012 - 22:32 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

Oh really? China's 250mph guided torpedoes say otherwise.

http://en.wikipedia.org/wiki/Shkval

Fri, 07/06/2012 - 02:46 | Link to Comment onebir
onebir's picture

Full report below?:

The rest of this Thunder Road Report will be sent next week to institutional investors who are clients viacommission votes/direct payment.

Fri, 07/06/2012 - 04:53 | Link to Comment EmileLargo
EmileLargo's picture

CALLING TYLER: THIS REQUIRES A SEPARATE POST ON ZH.

Fri, 07/06/2012 - 06:07 | Link to Comment silverdragon
silverdragon's picture

Buy Silver.

Live Free Or Die.

Fri, 07/06/2012 - 07:19 | Link to Comment Watauga
Watauga's picture

So, why not just accumulate as much debt as possible?  Either the entire Ponzi scheme collapses and 90% of people, indebted up to their eyeballs, make a new system that suits them, or the system does not collapse but he dollar is so devalued that you pay back the debt in worthless paper.  In the meantime, you have used the debt to accumulate real wealth, from food to water filtration to guns and ammo to fuel.  I don't see where investing in anything other than such real wealth is worth the risk.

Fri, 07/06/2012 - 08:16 | Link to Comment TK69
TK69's picture

NO, your theory misses the mark.  Money is a medium of exchange, nothing more.  And people must produce something or acquire something that somene else has produced that has value in order to make a trade.  OF course, the other party too must have something of value to trade.  It is all about supply and demand and (unrestricted) money can be anything.

And the reason why people buy the dollar is because Americans produce things that foreign people and most foreign nations want to buy, like food.  They need to export something in order to get US dollars so that they can buy US Goods.  Egypt riots because it cannot produce enough food for the masses and it exports hardly anything to US consumers which  means it has no US dollars to buy US food.

And this is why the US is considered a safe haven. The US produces a lot of things which is key to the Global economy as well as the life blood of many nations. Most foreign nations are mercantile economics .

Mercantile economies create monopolies of trade in order to stiffle competition and to protect their political allies. They don't innovate nor create. And as such never over come diminishing returns nor create new goods and services nor produce them in sufficiant quantities.  What we need is sound money and a laissez fair economy.

The world is is awash in a economic lie because too few people actually produce anything and governments don't allow for much innovation, creation, or trade.  The banking problem exist, not because of banking but because of government regulations and control.  SO, you can print all the money you want but if people do not produce anything, for a what ever reason, there is no need for it. The more individuals producing and trading with each other without restrictions, the better the economy and prosperious the nations as a whole.

This is what is causing the collapse of the division of labor around the world.  This is what has distorted the markets for so long.  IT is fiat money, taxes,debt, and government restrictions. We need a return to sound money, not a "gold standard".  We need 100% asset back commodity currencies that can compete with each other.  And people need to be able to afford a lifestyle and a living without having to borrow money.

Fri, 07/06/2012 - 09:28 | Link to Comment silverdragon
silverdragon's picture

The more Physical Gold and especially Silver we buy and take off the table the closer we get to reality.

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