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UBS' Releases Most Dire Prediction To Date: Greece To Experience "Coercive" Restructuring With CDS Triggering Around March

Tyler Durden's picture




 

UBS, which has been issuing ever gloomier forecasts over the past few months, with the sole intent of getting someone to bail out the European financial system, which despite the current stay of execution is increasingly more brittle (because solvency crises only get worse with time, never better), has just come out with its magnum opus. In a report released overnight, the firm's Global Rates Team has just jumped the shark, with a prediction that things in Europe are literally about to implode: "we anticipate that the crisis will deteriorate further than the stressed levels of late November. We do not believe that Greek PSI will take place in a “voluntary” fashion but instead expect coercive restructuring of Greek debt either before or soon after the March redemption, triggering CDS contracts. Greece is not likely to decide to leave the euro area in 2012, though the risks of that happening have certainly increased." And as we well know from previous UBS reports, a departure of a country from the Eurozone would lead to a mass splurge in purchases of guns, spam and gold. So is this merely a last ditch call for a bailout from someone, anyone: either Fed or ECB will do? Most likely. Because if while the general market continues to ignore Europe, and European banks are out there literally screaming the end is nigh, then the truth is surely somewhere inbetween. Especially, if as Reuters reports, Greece is just the beginning. "One of Portugal's most prominent business leaders has moved his family holding company to Holland partly because of uncertainty over whether the country will remain in the euro, Alexandre Soares dos Santos said in a newspaper interview on Saturday. Soares dos Santos, who is chairman of the board of Jeronimo Martins, caused a stir in Portugal this week when it emerged that his family holding company that controls the country's second largest retailer had moved to Holland...."I also don't know if Portugal will stay in the euro. And if it leaves, it will be to the escudo," Soares dos Santos told Expresso, referring to the escudo currency used by Portugal before it adopted the euro. "I have a right to defend my property."" So while everyone continues to expect the best, those who really matter are planning for the worst.

From Reuters:

Asked if the transfer had to do with the risk of leaving the euro, Soares dos Santos said: "Clearly. Since 2008 our economic consultants have talked about this."

 

Jeronimo Martins has been one of Portugal's most successful companies in recent years after having built up a large business in Poland, where it is now the biggest food retailer.

 

Portugal is currently going through tough austerity under a 78-billion-euro bailout by the European Union and IMF which has sent the country into its deepest recession in decades.

 

Soares dos Santos said the decision to move the holding to Holland had also been motivated by lack of financing by Portuguese banks, which have been hit hard by the euro zone debt crisis.

 

Jeronimo Martins has said there is no impact on its tax position from the move by its biggest shareholder.

And back to UBS, which may be on to something:

The 2012 trading year will begin in earnest with the release of Friday’s Non-Farm Payrolls data. This release will either provide more confirmation of progressive forward movement in the U.S. economy or undermine this nascent optimism and allow the unfolding events in Europe to influence the price action. It continues to be a bimodal world and investors have remained close to benchmarks as they wait for a dominant theme to emerge.

 

Political risk continues to pollute the investment landscape. In the U.S., President Obama appears to be staking out a strategy of making Congressional dysfunction his main issue, pushing forward with political appointments during the holiday recess and posing as the populist advocate. The Payroll Tax Relief bill expires – somewhat appropriately – on February 29, providing a near term casus belli for the ideologues in Congress. The Republicans are waging internecine war as they move through the primaries, a process which will likely come to a resolution by late winter. The Supreme Court will soon hear cases on the President’s health care reform and Arizona immigration laws and is expected to issue a decision by early Summer. From that point on the focus will deservedly be on the November 6 election. The House is likely to remain in Republican hands, the Senate is anticipated to move towards an even split (with some pundits looking for an incremental Republican edge), while President Obama holds a 51% margin (intrade.com) over the yet to be determined Republican nominee. As all these events unfold, the prospects for any significant fiscal package, regulatory clarification, or tax reform remain nil.

 

With little help from the fiscal side, the U.S. economy is expected to continue to move forward at a 2.25% pace over the calendar year (annual change), with inflation by most metrics holding to around 2.0%. The Unemployment Rate will remain stubbornly high – we currently forecast 8.6% at year end. The Fed is expected to remain locked down at 0.0% on the policy rate with the Open Market Desk continuing to shift the remaining balance of risk ($266 billion) towards the long intermediate and long end of the curve by June 30. While it’s not our expectation that the central bank will engage in further supportive measures such as QE, we do acknowledge the ongoing dovish tone of the FOMC Minutes as well as the cast of their public comments.

 

Against this backdrop of political events and economic activity we caution against taking duration risk. We see opportunities to enhance relative return along the curve, and advocate positioning for flatteners in the 2s/5s and 10s/30s parts of the curve, while forecasting a steepening in the 5s/15s sector. In the current refi-constrained world, volatility hedging remains subdued and vega is expected to decline. Lower long dated volatility and a stagnant to declining supply of mortgage product are expected to be supportive of the basis. The foreign official and Open Market Desk bid for MBS should also favor a narrower basis. As befits the parlous state of affairs, we advocate a tactical long position in gamma on 10- and 30- year tails. This can be funded with short gamma on five year tails where we expect little volatility in any outcome and short position in intermediate vega.

 

In Europe, events are expected to continue to move along a spasmodic evolutionary path. Greece will remain at the forefront of the crisis. We do not believe that Greek PSI will take place in a “voluntary” fashion but instead expect coercive restructuring of Greek debt either before or soon after the March redemption, triggering CDS contracts. Greece is not likely to decide to leave the euro area in 2012, though the risks of that happening have certainly increased.

 

As a result of the above - and other factors – we anticipate that the crisis will deteriorate further than the stressed levels of late November. As the situation becomes more disorderly, we anticipate a “big bang” commitment to future common debt issuance from governments, as well as institutional change to ensure fiscal discipline. The ECB will probably not provide the solution to the crisis by itself, but it might act to buy time for governments if they commit themselves in this way. We recommend buying the periphery when the commitment is made, even after a significant spread tightening. From then on, fade significant weakness in core spreads to swaps.

Our only question: what happens if no commitment is made and/or the only one with the ability to bail out Europe, and the world, remains the Fed?

 

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Sat, 01/07/2012 - 19:53 | 2042853 fightthepower
fightthepower's picture

Gold bitches!

Sat, 01/07/2012 - 20:05 | 2042879 trav7777
trav7777's picture

gonna need to short the piss out of EU banks too

Sat, 01/07/2012 - 21:17 | 2042956 Doña K
Doña K's picture

if she blows hard, you may not be able to collect from your broker.

IMHO, it's going to be one of those "unexpected", "unpredictable" weekend events, where no one can react fast enough.  

Sat, 01/07/2012 - 21:41 | 2043021 The Limerick King
The Limerick King's picture

 

 

The end will come shockingly fast

Akin to a nuclear blast

At the speed of a sneeze

Fake assets will freeze

The shit in your house needs to last

Sat, 01/07/2012 - 22:00 | 2043043 CrockettAlmanac.com
CrockettAlmanac.com's picture

New Hampshire debate starting. Anyone watching?

Ron Paul 2012!

Sun, 01/08/2012 - 02:24 | 2043603 redpill
redpill's picture

Do they have a prediction for when UBS will experience coercive restructuring?

Sun, 01/08/2012 - 02:37 | 2043613 AgShaman
AgShaman's picture

That prediction comes after they learn how to predict when someone really wants their silver.

http://www.coinweek.com/news/featured-news/class-action-suit-accuses-ubs-of-charging-storage-fees-on-phantom-silver/

Sun, 01/08/2012 - 08:05 | 2043805 Ghordius
Ghordius's picture

"...when UBS will experience coercive restructuring?" LOL

the joke is the solution - but is seen as a joke only... :-(

 

-----------

"a departure of a country from the Eurozone would lead to a mass splurge in purchases of guns, spam and gold" I find this kind of thinking puzzling - it reminds me the Domino Theory that we had during the Vietnam War.

If I lose one girlfriend, is my risk greater to lose the other one? And then my wife, too? ;-) Perhaps, perhaps not...

There are systems where the components depend in a critical way from each other, but there are also systems that improve when non-critical expensive and unnecessary parts are shed... again, sometimes is that other girlfriend just too expensive... ;-) ;-) 

Sun, 01/08/2012 - 13:55 | 2044291 Oh regional Indian
Oh regional Indian's picture

Definitely the great downward spiral all around. 

Craziest stat I heard was (I'm visiting Delhi) that Real Estate in Delhi has DOUBLED in the past 12-18 months here.

Doubled. When you look around at the staggering poverty, it takes on even more sinister tones. Where is all this money coming from? US and EU, the core of India's outsourcing boom bloated middle class are flat on the ground. Rupee is being devalued like there is no tomorrow.

When you see this, you realize the depth of the great lie of BRICS and the shining future here, there or anywhere really. 

Greece is just a word a name, the convenient/planned scapegoat.

ori

my/truth/

Sat, 01/07/2012 - 22:06 | 2043047 AldousHuxley
AldousHuxley's picture

You BS....."trust us"

Sun, 01/08/2012 - 00:34 | 2043364 The Big Ching-aso
The Big Ching-aso's picture

 

 

Greek politicians hanging from the Acropolis.   A Greek Tragedy?

Sat, 01/07/2012 - 22:18 | 2043067 Iam_Silverman
Iam_Silverman's picture

"gonna need to short the piss out of EU banks too"

That's contingent on two presumptions:

1 - That the government allows such "evil speculative actions"

and

2 - There are any shares left to borrow.  Seriously, don't you think that by now G-S has already seen the writing on the wall and loaded up short on EU banks?

Sun, 01/08/2012 - 01:51 | 2043547 vast-dom
vast-dom's picture

While my narrative remains essentially unchanged, my timing has been quite off for various reasons, and yet I still think Februaury is when the shit hits the fan. But that may just mean April or even later is when we actually get the smackdown. And if we factor in the QE3 in March theory and the Iran 50% escalation also of March we have confluence of perfect shitstorm......

Sat, 01/07/2012 - 20:59 | 2042953 persu
persu's picture

Absolute rubbish, Greece will never default nor leave euro. Eurocrats rather buy all debt and give all money thereafter to ensure success of our european dream.

ask any German, they are completely content of the current ECB policy, this is excatly what they hoped to achieve by ensuring a perfect insulation from political pressure, and further, ECB is only responsible for inflation. Now that M3 as well has fallen well below the target of 4.5%, there is every reason to trust savvy policy to steer us on solid ground.

Sat, 01/07/2012 - 21:08 | 2042967 Doña K
Doña K's picture

You may be right if by Greece you mean the government and not the people. But would the people go for even more austerity?

Sat, 01/07/2012 - 21:54 | 2043036 AldousHuxley
AldousHuxley's picture

Greek people have less power than a bottle of Greek olive oil.

 

 

Sat, 01/07/2012 - 23:26 | 2043197 Peter Pan
Peter Pan's picture

If you mean that they have a government that is unaccountable to them, I agree. But if you mean that they will continue to allow themselves and their nation to be gutted....then you have another thing coming. Sooner or later a politician will be shot or set upon. Sooner or later the whole populace will rise up. They haven't been defending western civilization for the last 2500 years by chance. Just read about their unmatched resisitance during WWII and what Churchill , Hitler and others said about them and you will realise that they are a time bomb that will go off.

 

Sun, 01/08/2012 - 04:21 | 2043716 Doña K
Doña K's picture

So far, they have put cops on fire, they have used all the marble from the square as weapons, They have made parliamentary members quit while saying that they want to live.

The parliament convenes at midnight fearing death. The tunnel from the parliament building (which was the palace sometime ago) that connects to the harbour of Pereaus which was blocked due to several earthquakes has been reopened for fast getaways of the members.

Then they copied the Spanish indignados to see if that method would work and it didn't, So now phase three is pyrothanasia and holocautomaa of banksters and politicians.

What are Americans doing while the constitution is being burnt in your faces page by page with brazen audacity by your ruthless government lead by an impostor? 

No mas!

 

Sun, 01/08/2012 - 04:28 | 2043720 Oracle of Kypseli
Oracle of Kypseli's picture

Brava!

Sun, 01/08/2012 - 12:16 | 2044090 ISEEIT
ISEEIT's picture

I love you.

Sun, 01/08/2012 - 10:28 | 2043944 fightthepower
fightthepower's picture

Greek people have the power to grab a gun and defend their country.

Sun, 01/08/2012 - 08:43 | 2043841 oogs66
oogs66's picture

Greece wants to default. Greece needs to default. Doesn't matter what the Germans and French want and they have screwed themselves by wasting so much money on it Greece.

Watch inflation with Eur at 1.20

Sun, 01/08/2012 - 10:45 | 2043961 Cloud9.5
Cloud9.5's picture

Ah never.  The Soviet Union was never going to collapse, and the price of real estate was never going to go down.

Sun, 01/08/2012 - 06:34 | 2043773 Hot Shakedown
Hot Shakedown's picture

OT- Obama has some ballot challenges..court date set..http://www.youtube.com/watch?v=2KhFneWERAU&feature=player_embedded

perhaps there is a god and Obama's utter fraud will finally be revealed during discovery.

Sun, 01/08/2012 - 12:16 | 2044092 Hephasteus
Hephasteus's picture

Those Tea Partiers are doing a pretty good job.

Sun, 01/08/2012 - 20:29 | 2045319 Doña K
Doña K's picture

Hilary, is that you?

 

Sun, 01/08/2012 - 09:27 | 2043881 cossack55
cossack55's picture

Gold is on the periphery?????

Sun, 01/08/2012 - 11:48 | 2044051 Future Tense
Future Tense's picture

The biggest problem is no longer Greece, it is Japan.  Greece is only the warm up.  All eyes should be on the "widow maker" because it is about to become the "money maker" for bond and currency shorts.  Good discussion of Japan's bond bubble here:

http://www.ftense.com/2012/01/2012-outlook-japans-debt-crisis.html

Sun, 01/08/2012 - 12:06 | 2044077 agent default
agent default's picture

Any real asset you can physically own and hide away, anything but fiat,

bitchez.<-Note ZH approved spelling.

Sat, 01/07/2012 - 19:53 | 2042855 Sudden Debt
Sudden Debt's picture

Looks like i'm going to win the pool!

Sat, 01/07/2012 - 19:55 | 2042858 surf0766
surf0766's picture

Warmer weather then. Good for useful idiots in the streets.

Sat, 01/07/2012 - 19:55 | 2042861 pkea
pkea's picture

Told you so,its going to be march April with full blown crisis by november

Sat, 01/07/2012 - 19:58 | 2042863 surf0766
surf0766's picture

And no election

Sat, 01/07/2012 - 20:16 | 2042896 Manthong
Manthong's picture

I thought Europe had three weeks to live four weeks ago.

Sat, 01/07/2012 - 20:50 | 2042940 Ahmeexnal
Ahmeexnal's picture

EEEEWW-rope is only living on borrowed time....from it's fate.

Sat, 01/07/2012 - 21:03 | 2042957 wisefool
wisefool's picture

Hans Gruber/Merkel:

You asked for the impossible. I give you the IMF

TIMMAY!!!!!!

Sun, 01/08/2012 - 02:12 | 2043590 CrockettAlmanac.com
CrockettAlmanac.com's picture

Impossible Mission Force?

 

http://www.youtube.com/watch?v=Jhuc9_T4558

Sun, 01/08/2012 - 00:04 | 2043279 ucsbcanuck
ucsbcanuck's picture

Brings the following to mind:

http://www.youtube.com/watch?v=heiyM61dfio

"It was 2 minutes 5 minutes ago"

And of course the immortal "ze Germans"

Sun, 01/08/2012 - 01:35 | 2043517 q99x2
q99x2's picture

Biden will be US President by then. Won't need an election.

Sun, 01/08/2012 - 10:53 | 2043971 Cloud9.5
Cloud9.5's picture

Lincoln held an election in the middle of the Civil War.  He had suspended the Bill of Rights, arrested thousands including members of Congress and various state legislatures who were his political enemies.  He even contemplated arresting members of the Supreme Court.  With all of this, he still submitted to the election process with the real possibility that George McClelland might beat him in a general election.

If elections are suspended then the Republic is done, over, finished!

Sat, 01/07/2012 - 20:00 | 2042868 Sudden Debt
Sudden Debt's picture

Dude, you picked like every month in 2012. It's like putting money on 36 numbers at reloutte.

Sat, 01/07/2012 - 19:58 | 2042862 Sudden Debt
Sudden Debt's picture

Greece is now backing up their bonds with land.
So if the economy (no way in hell) doesn't improve and the country is giving land away and the people get nothing, we might get a revolution over there.

Sat, 01/07/2012 - 20:11 | 2042885 disabledvet
disabledvet's picture

Yep.

Sat, 01/07/2012 - 20:57 | 2042949 Sizzurp
Sizzurp's picture

Maybe the squid will end up with the acropolis.

Sun, 01/08/2012 - 01:43 | 2043534 GMadScientist
GMadScientist's picture

Maybe there won't be much left of it by the time they get to Greece.

Sat, 01/07/2012 - 23:37 | 2043225 Pay Day Today
Pay Day Today's picture

Greek land owning feudal lords from foreign lands. Probably Germanic. Nice.

Sat, 01/07/2012 - 23:52 | 2043255 disabledvet
disabledvet's picture

General Hamm's place.

Sun, 01/08/2012 - 10:41 | 2043951 4horse
4horse's picture

Germanic . . . ?

 

misidentifying pathogens, deliberately, is what allows for their continued viral contagion: as if there were each in fact a separate and very specific phenotype at fault __the portugeuse. the irish. italians. greeks. spanish__ ?

when all along it's the single self-same swine

 

1BigPig

 

the spread of whose bacterial colonizing even now cockroaches and encrouches upon one acropolis after another into its necropolis, a worldwide stye which will as well imbibe an eiffel and a pisa along with its empire state, full of peons, for pennies-on-the-dollar

and usual pissants in power

while diagnoses like yours, false, only furthers the fingerpointing-- thisaway; the greek people : thataway; mediterraneans : every-which-way-but-truth, as if any particular population from either hereabouts or thereabouts could owe just Who over a quadrillion of anything --deseguys; deadbeats : doseguys; useless eaters : J'Accuse, individual people, so as to even further entangle these many arms and their industries to point everywhere but at the one putrid petri atop which squats their squalid octopus

H8 N0 one

 

But1

 

the stink tank:1BigBank
 

The Occident
        v.
  The Orient

 

Sat, 01/07/2012 - 20:58 | 2042952 pine_marten
pine_marten's picture

When a revolution happened in the old country, the peasants would celebrate their freedom by going hunting on lands they had been barred from.

Sun, 01/08/2012 - 03:18 | 2043658 snowbaall
snowbaall's picture

The Greeks hate me because I'm beautiful.

Plus I shagged the Prime Minister's mother.

Sorry.  I can't help myself.

But that's the way I roll.

Sat, 01/07/2012 - 21:03 | 2042958 persu
persu's picture

Ýou are wrong, this solves the Greek problem. As Greek land is pretty useless anyway, it has not that much value in farming or anything else. That means large chunks of land goes out with each bond issue, and soon the land will be called Germany.

Problem solved.

Sat, 01/07/2012 - 21:30 | 2043007 s2man
s2man's picture

The German Islands.  Has a nice ring to it.

Sun, 01/08/2012 - 01:44 | 2043537 GMadScientist
GMadScientist's picture

Really really not. Beaches covered with uptight guys in black socks and knee-pants. <shudder>

Sun, 01/08/2012 - 11:30 | 2044014 Arius
Arius's picture

"German islands" .... yep ... a very nice ring ....it makes you wonder if the short cut was to no resist Hitler at all ... it seems things have a way to go where they are intended to go no matter how much one resist the devine resolution ....

the little frenchman and his water rights comes to mind ....

Sat, 01/07/2012 - 22:23 | 2043071 Iam_Silverman
Iam_Silverman's picture

"As Greek land is pretty useless anyway"

What?  I guess if it isn't your land, it's easy to dismiss as useless.  When your land has just been given to a foreign entity to pay for a debt you might not have incurred, well that's a different story.

 

Besides, I'd bet that anyone looking to establish a military presence in the area would beg to differ.

 

 

Sat, 01/07/2012 - 19:59 | 2042866 Red Raspberry
Red Raspberry's picture

Gold, Silver and ProShares UltraPro Short S&P 500 (ETF)

Sat, 01/07/2012 - 20:00 | 2042870 Muddy1
Muddy1's picture

Why do we as US taxpayers have to bail out Europe via the Fed?

Sat, 01/07/2012 - 20:10 | 2042882 MarketWatchTerrorist
MarketWatchTerrorist's picture

The American province of the New World Order is merely the offshore military arm of the global elite based in Israel and Europe.  The "tax payers" in the American province are just serfs that happen to physically occupy this province of the NWO at the moment.

 

Your thinking is very "20th century" if you get my drift.  Welcome to the NWO.

Sat, 01/07/2012 - 20:14 | 2042892 disabledvet
disabledvet's picture

That's Provence to you mofo.

Sat, 01/07/2012 - 20:43 | 2042931 Ropingdown
Ropingdown's picture

No, it's province.  Provence is where we go to have some really good food, wine, and enjoy the native talent.  It is a much better place than the commenter was referring to, for those three pleasures.

Sat, 01/07/2012 - 21:44 | 2043025 wisefool
wisefool's picture

What about this talent?

Tim Geithner and the 75,000 chord tax code.

http://www.youtube.com/watch?v=oFFQpd9akSg

Sat, 01/07/2012 - 23:55 | 2043259 disabledvet
disabledvet's picture

Exactly. I want wine, cheese and good conversation about something other than war. PROVENCE BITCHES!

Sun, 01/08/2012 - 00:41 | 2043384 toomanyfakecons...
toomanyfakeconservatives's picture

Agreed... I see the American province being scrapped and sold for parts in the not so distant future

Sat, 01/07/2012 - 20:11 | 2042886 CaptainObvious
CaptainObvious's picture

Uh, maybe it could be because a currency crash doesn't exist in a vacuum and Uncle Ben is trying (pointlessly) to avoid that currency crash?

Sat, 01/07/2012 - 23:31 | 2043209 supafuckinmingster
supafuckinmingster's picture

Coz Ben says so...........Ben runs the Fed, the Fed is the international face of GS, GS runs the rest of the world, so de facto, Ben runs the world,,,,,,,,,AND BEN HAS SAID SO.

Sun, 01/08/2012 - 11:42 | 2044038 Marco
Marco's picture

US tax payers don't bail out shit, they might share a bit of their free stuff at best ... after all they benefit the most from the global fiat ponzi, they run the greatest trade deficit of all.

The harder Greece defaults the sooner foreign partners not dependent/afraid of the US military will start to reconsider the dollar as reserve currency ... that's why the US has to share the loot of the fiat ponzi, all the trade deficit countries are in this scam together.

Sat, 01/07/2012 - 20:00 | 2042871 LookingWithAmazement
LookingWithAmazement's picture

Storm in a teacup. Mark my words. They will never ever let the whole tsunami of financial crap collapse. Never. So. You all know it. Boring world we live in.

Sat, 01/07/2012 - 20:12 | 2042888 masterinchancery
masterinchancery's picture

If "they" have such power, why didn't they sprinkle their magic pixie dust on all the debt and make it go away?

Sat, 01/07/2012 - 21:23 | 2042991 Manthong
Manthong's picture

They don't want it to go away because it is their claim on future generation's production and assets. 

Sun, 01/08/2012 - 11:46 | 2044047 WonderDawg
WonderDawg's picture

Lookingwithamazement, you have a lot of faith in "they". Probably not good for you. "They" are shitting in the panties right now. "They" are trying everything they can think of but they have no solutions. "They" are helpless to stop the collapse that's coming. "They" have been trying to engineer a soft landing but they know they've failed and shit is about to get real. We'll see how "they" fare in the aftermath.

Sun, 01/08/2012 - 12:11 | 2044083 wisefool
wisefool's picture

This is the end of a great cycle. and yes the debt is about making the next generation work to pay off the "foundation" the previous one set up for them.

The problem is that due to technological and cultural changes, the younger generation is not going to do it. Its not that they dont have ambition, its just they have been shown the vapidity of most of the easily taxible stuff (new homes, autos, etc) and if you dont need a McMansion, then you dont need a high income, etc, etc, etc.

Oh and now you are going to give young people obamacare, which means they will not have to work jobs at all! (Back in the old days that was the biggest reason people went to work, medical benefits)

I am all for it. You 20-30 year olds need to show the boomers how to do the "hippy. free spirit" thing right and proper.

Sun, 01/08/2012 - 13:01 | 2044171 Marco
Marco's picture

Why do you suppose the needs of the young won't be just as easily taxed? When you own most the land and government it's quite trivial to increase the rent/mortgage on a 1 bed room apartment in the future to what it costs to have a McMansion now, denominated in peon man hours.

Sat, 01/07/2012 - 23:33 | 2043213 supafuckinmingster
supafuckinmingster's picture

Because debt is their power.............this is the tool they use to browbeat national governments and by default nations.......it is they're modus operandi.........

Sat, 01/07/2012 - 23:44 | 2043242 Bolweevil
Bolweevil's picture

Too right. No CDS trigger unless TBTB benefit. Better to keep everyone scared that they're next and keep collecting the vig. How do you unwind $70bazillion again?

Sat, 01/07/2012 - 20:16 | 2042898 disabledvet
disabledvet's picture

Then you should change your name to "lookingwhileeatingpopcorn."

Sat, 01/07/2012 - 20:22 | 2042906 CaptainObvious
CaptainObvious's picture

Baaaaaaaaa. 

 

Eventually, they will run out of road and the can's gonna fall off the cliff.

Sun, 01/08/2012 - 07:20 | 2043794 Red Herring
Red Herring's picture

Never! The earth is round, and the sun never sets on the British Empire...

Sun, 01/08/2012 - 11:50 | 2044054 Rodolfito
Rodolfito's picture

It's not the British Empire that is doing all this, it is the Rothschild-led banking cabal. Their City of London is totally independent of the BE.

Sat, 01/07/2012 - 20:42 | 2042929 LeBalance
LeBalance's picture

your thesis depends deeply on which band of Satanic MFers you think are playing pinball here.

same ones maybe that partied after the financial collapses in 1340?  1780? 1923?  1932? (list shorter than it could be).

is 2012 a big "story" year for them?

how big?

/lol/

Sat, 01/07/2012 - 21:15 | 2042979 itchy166
itchy166's picture

"They" are orchestrating the collapse, it was built into the system from the outset.  The systems of payment won't collapse, but everything else will.  

Sat, 01/07/2012 - 23:58 | 2043266 disabledvet
disabledvet's picture

Some orchestra. "hey you in the back! Start playing that thing!"

Sun, 01/08/2012 - 10:09 | 2043930 Urban Redneck
Urban Redneck's picture

"They" obviously did not plan 9/11 very well then... Digital fiat simply cannot exist without systems of clearing and settlement.  "They" should spend some time with Schrödinger's cat.

Sat, 01/07/2012 - 21:41 | 2043022 luna_man
luna_man's picture

 

"lookingWithAmazement"

Well beyond "let"...DONE DEAL!

Sun, 01/08/2012 - 01:10 | 2043458 Freddie
Freddie's picture

You better hope.  It is gonna be getting .223 and .308 down the line in tight groups.  Target acquisition.  Not spray and pray ladies unless you need supression fire.

Sat, 01/07/2012 - 20:01 | 2042872 Atomizer
Atomizer's picture


 

Didn't AIG just spout turning a profit recently? If memory serves me right...

AIG: The Main CDS Insurer for Greek Government Debt?

 

 

Sat, 01/07/2012 - 21:55 | 2043038 Awakened Sheeple
Awakened Sheeple's picture

There's my next big short

Sat, 01/07/2012 - 20:08 | 2042880 MarketWatchTerrorist
MarketWatchTerrorist's picture

Under the New World Order all implementations of edicts passed down from the unelected central authority that the people of each province do not agree with will be enacted "coercively."

Sat, 01/07/2012 - 20:26 | 2042910 Atomizer
Atomizer's picture

I often riddle ZH with upcoming events in obscure sentences. You have puzzled a master of word encryption. Take it down one notch please.

 

Q: Do you really think that event will transpire?

A: Not a chance. Everyone is expendable in life.

Sun, 01/08/2012 - 10:16 | 2043936 Urban Redneck
Urban Redneck's picture

Who needs a New World Order while Brussels is still spouting? 

The Keynesian and Fascist love of broken windows, is generally only expressed when it's OTHER PEOPLE's windows that are broken.

Sat, 01/07/2012 - 20:11 | 2042884 non_anon
non_anon's picture

about friggin' time

Sat, 01/07/2012 - 20:14 | 2042893 masterinchancery
masterinchancery's picture

Inflation 2% "by most metrics?" Those would be the metrics that exclude unimportant things like food, energy, taxes and school tuition (secondary and college)?

Sat, 01/07/2012 - 20:31 | 2042915 Atomizer
Atomizer's picture

Based on the US Misery Index, inflation is 3.39. I only listen to my TV talking heads, no inflation exists.

/sarc

Sun, 01/08/2012 - 10:21 | 2043940 DeltaDawn
DeltaDawn's picture

Don't forget medical...

Sat, 01/07/2012 - 20:20 | 2042904 disabledvet
disabledvet's picture

Bruce gonna get some face time on CNBC? No you all say? "Reggie's their man cuz...

Sat, 01/07/2012 - 20:24 | 2042909 non_anon
non_anon's picture

just read this on Drudge

"Crisis-hit Greece plans to sell bonds with state property as collateral to buy back sovereign debt and postpone a privatisation drive under unfavourable market conditions, a report said on Saturday. "

http://www.breitbart.com/article.php?id=CNG.c491790352f9e17d471995233507ef23.161&show_article=1

it reminds me of a book I read on the French Revolution in the 1790's, before the French Revolution, the king confiscated Roman Catholic church property and used that for collateral for his paper currency, we know how that turned out.

 

Sun, 01/08/2012 - 10:22 | 2043941 Urban Redneck
Urban Redneck's picture

Some fools apparently just love digging holes deeper, did someone sell the Greek government a fake treasue map saying there gold in Tartarus which will solve all their debts? 

Sun, 01/08/2012 - 12:35 | 2044121 Things that go bump
Things that go bump's picture

You are mistaken.  It was the revolutionary government that confiscated church property and the property of the landed aristocracy and used it to back their paper currency (the assignat).  It was such a success at first, that they couldn't see the harm in issuing more and more paper.  They decided to have the Terror as a diversionary tactic, in an attempt to retain power, calculating that people who were worried about keeping their heads would be less likely to complain about the fading value of their money.   

Sat, 01/07/2012 - 20:30 | 2042914 apberusdisvet
apberusdisvet's picture

Obama/Hillary vs. Romney/Rubio

Golden showers reign (rain) over America.

Sat, 01/07/2012 - 21:17 | 2042984 roadhazard
roadhazard's picture

I have been saying for a while that Biden and Hillary are going to change jobs. Obama is already quoted as saying no to that but I don't believe him. Hillary wins in 2016 if there is still a political system in America.

Sat, 01/07/2012 - 21:57 | 2043039 wisefool
wisefool's picture

I think it depends on workload. The MSM has been saying that 'Bamer has to appoint a male to US-COURT considering his last two were women. He'll get 2 appointments in the next term, but only one before 2014 (Ginsberg) My sources tell me that Hillary wants to be a supreme court justice rather than POTUS in 2016.

I hope we can start betting on this stuff in america soon. I hate the laws around intrade.com.

Sat, 01/07/2012 - 20:36 | 2042920 Rudolph Steiner
Rudolph Steiner's picture

Where to begin a summary of the Slow Snatch of all that glitters in this new Century. Shall we begin with half truths and incomplete accounting for the gold vaulted beneath the World Trade towers in September of 2001?  The fate of the soldiers who, in May of 2003, didn’t really “discover” an enormous cache of Iraqi gold?
Is it just coincidence that gold’s share of national forex reserves of just three of the struggling PIIGS average just over 77%, the US sits at just under 75%, and their recent financial calamities elicited by US investment frauds of this decade past, bears silent witness, “lions and tigers and ... oh my”, of an epic trend in Artful Dodger like 21st Century shenanigan unrivaled in global financial history?
Coincidence too that these gold countries are, like the MENA oil states ~ one by one, being thrown under the financial bus, the tower, the hammer of democracy, a reworking of the Euro alliance and a Pinky and the Brain epilogue to a past we will wax nostalgic for when grandchildren listen to our candlelight cave wall shadow PowerPoint about the what things were...  Plato is weeping.
 
2008 was a pivotal year in many respects. In the fall of ‘08 the Lehman liquidity freeze of a lifetime would shock and awe global financial markets. But in February, US Treasury interests oddly prescient, and with IMF annual debts of $400 million anticipated by 2010, sad that the IMF was in such awkward shape, IMF movements were already underway, in the final year of Bush II, to divest IMF gold by 12.9 million ounces, from its then then third largest world gold holdings of 103.4 million ounces. Just to help balance the books and all that ~ fake the world to imagine the “worthlessness”, yet ready fungibles on any continent, of this grand and noble metal.

On February 25, the U.S. Treasury announced its decision to support the International Monetary Fund's (IMF) proposal to sell a portion of its gold reserves in order to fund the IMF’s future operations. The Treasury’s support followed the public approval granted by the Group of Seven (G7) nations on February 9 in Tokyo. #

Concurrently the Treasury negotiates a logical diminution of European seats on the IMF, in order that poorer countries, and if this sounds oddly like the purchase of voting wards in a politically corrupt American “past”, so developing countries can more readily participate in IMF decision making.

The Treasury also wants to eliminate the rule that reserves positions for the U.S., Japan, Germany, France and Britain, a move likely to result in fewer European directors on the IMF board.#

With Europe in shambles, and the slow squeeze on for the PIIGS to divest themselves of their stash of barbarous relics, that PIIGS can balance their well orchestrated and unsustainable debt to whomever it is actually that holds the other end of that exchange, the plot thickens.

Today, now that the opening decade of wholesale theft, embezzlement and a chorus of conspiracists, like Presidential candidate Ron Paul, imagine Fort Knox bereft of our nation’s treasure, a renewed putsch for globalist confiscation of the world’s gold enters as the 2nd act of this tragicomedy. Where did Libyan assets end up? Their gold reserves, which prior to the “upraising” was the highest national per capita gold reserve on the planet, 143 tonnes, are where exactly?  Orwell media accounting imagines 25 tonnes went to help Qaddafi dike the waters of overthrow back a bit, but of the 100+ tonnes outstanding? This same media suggest we have faith that a drone nation piloting a couple University grade hyperspectral remote sensing instruments aloft over a small desert Nation cannot locate such a gold stash. Laughable, Fagin.

Ours is not the age of politics or economics, democracy or fascism is not the debate we should be having, but rather a time of the world class con, bandits and bailiffs both are all employed by a shrouded kleptocracy which goes about its business unnoticed by virtue of its brazen acts. Its like they are watching us react like ants to a magnifying glass while they steal our barbaric queen of value, wholesale.

But then this sort of behavior is as old as history. Germany still has to listen to Greece ask where Greek gold went in WWII. Portugal is awfully quite about the double and redouble again of their gold on hand between the beginning and end of the same War, up 600%. The French are still waiting for the Swiss to make due on their thefts and the final disposition of Japanese gold seizures are, to this day, the stuff of intrigue and speculation.

In this installment of the Slow Snatch we are hard at work hedging in China’s resources ambitions, stealing gold and confiscating the power of the MENA for oil. MF Global is a pimple on the ass of a huge vampire that is sucking away all civilization as we have known it down the tube with the intensity of a Trade Tower “collapse”. Price discovery, and other antiquated concepts like democracy, value and cash are all headed for the ovens and we are watching real housewives and munching on tacoburgerchips, dissect football subtleties while Rome burns all around us.

The currency wars, the oil wars, the war wars ... all are smoke for the ultimate Murphy’s Law coup. All we need is Lisbeth and her tattoo self to toss a match onto this car wreck and there will be a happy ending, we hope. But has she been listening, Anonymous?

And so you see, me boyos, the game has been on for more than a fortnight. The powers that be are de-leveraging and stockpiling while the little people shift like fruit flies from one headline to the next. The game is over. NY Fed feeding grounds, planet Earth.

“We will own Portugal’s gold, Greek gold and Italian gold before all the dust is settled. Revolutions may try to stop us. But we have contingencies for all that, trust me...”

 

see: http://www.bicusa.org/en/Article.3698.aspx

Sat, 01/07/2012 - 21:06 | 2042965 BoNeSxxx
BoNeSxxx's picture

Source of the last sentence?

Sat, 01/07/2012 - 21:22 | 2042994 Rudolph Steiner
Rudolph Steiner's picture

Harvey, a six-foot, three-and-one-half-inch tall pooka resembling an anthropomorphic rabbit; a consultant who lives, part time, in N. Va. But then he drinks now and then...why? Have you been hearing this too?

Sun, 01/08/2012 - 00:00 | 2043270 Bolweevil
Bolweevil's picture

I hear voices. NASCAR and copious amounts of cheap beer helps; Muay Thai when they get bossy.

Sat, 01/07/2012 - 21:24 | 2042997 macktheknife
macktheknife's picture

Yes, where is Lisbeth now?   Havana?  Lebanon?   Cairo?    Lisbeth, do your deeds - take this motherfucker down.    Sip a Cuba Libre, sitting on a houseboat in Seattle, and take this motherfucker down. 

Sat, 01/07/2012 - 21:31 | 2043010 sabra1
sabra1's picture

searching the bible about the part that refers to God creates, hires bastards to run the joint!

Sun, 01/08/2012 - 09:45 | 2043903 new game
new game's picture

as the ship sinks, i would imagine the gold will not end up at the bottom.

Sat, 01/07/2012 - 20:35 | 2042921 toadold
toadold's picture

The Committe of Public Safety continued the policy of using confiscated land to back bonds.  As things went on the land became worth less and the bonds even more so.  One of the first things Napoleon did when he became Emperor was to put France back on a PM backed currency because the bonds had turned into feces. 

Sat, 01/07/2012 - 20:58 | 2042943 Ropingdown
Ropingdown's picture

And one of the first things the US did, newly freed from British rule, was to let the Boston money men, many of whom had spent the revolution abroad, be restored to their assets, mortgages, so that they could begin to reposess the farms of poor veterans who couldn't pay their farm mortgage because there was not enough gold available for delivery.  They couldn't do a quick sale for gold because there was no gold available. Samuel Adams was completely OK with this, as he was a talker not a fighter, and as big Boston money and trade free of British rule was what he was about.  The first general of the revolution before Washington took over, Artemis Ward, was also subsequently the judge in Massachusetts approving these forfeitures of farms, houses, and livestock.  Shays' rebellion contains lessons for us today, and a bit they don't teach very clearly in high-school US History.  It is worth reflecting upon.  The common folk and Virginians had to struggle to make sure the Bill of Rights was enacted.  For this web site it is the drastic "shortage of specie" which among other things led to Shays' Rebellion which should be of interest, and the resulting dispossession of the unpaid soldiers of the revolution.  The power of big finance didn't begin with the Federal Reserve Bank, and the spirit of money-center finance can certainly live on without it.  Own much "paper gold"?  I'm into forestry with no debt, but if you're a gold bug into the paper variety, I'd re-read a piece on Shays' Rebellion.

Sun, 01/08/2012 - 10:01 | 2043922 flattrader
flattrader's picture

One of the better comments on ZH in a long time.

We just traded one set of oligarchs for another...and dead on re: Bill of Rights.

The majortiy of founding fathers could have cared less about 'rights."

>>>The power of big finance didn't begin with the Federal Reserve Bank, and the spirit of money-center finance can certainly live on without it.<<<

Yep.  All those waiting for salvation with "End the Fed" will be sorely disappointed.

Sun, 01/08/2012 - 12:53 | 2044160 Things that go bump
Things that go bump's picture

Real estate is equally subject to confiscation, debt or no debt.

Sat, 01/07/2012 - 20:38 | 2042924 Scrilla
Scrilla's picture

So, US investment banks are saying "buy" to get their commissions and brokerage fees pumping, while their European counterparts are screaming "sell" in order to save their own asses?

Sun, 01/08/2012 - 08:14 | 2043816 Ghordius
Ghordius's picture

"US investment banks" <-> "their European counterparts"

there is no such thing anymore - the investment banks are all transnational, some of the commercial banks are regional

Sat, 01/07/2012 - 20:41 | 2042927 f16hoser
f16hoser's picture

.....but I thought Christine Lagarde was giving-out Trillion Dollar BJ's? What happened?

Sun, 01/08/2012 - 00:03 | 2043276 disabledvet
disabledvet's picture

Obviously she wasn't the disappointment.

Sat, 01/07/2012 - 20:46 | 2042934 J 457
J 457's picture

When is the PIIGS downgrades?  The condition has deteriorated since the last warning, yet no permanent action is taken.  UBS, BAC, MS, C, GS, most all predict dire EU Q1-2 2012, yet no defaults and still no printing.  My guess;

1) S&P downgrade several countries.  Borrowing cost soar higher. 

2) ECB forced into printing as liquidity freezes and USD surges higher

3) US equities initially fall down to SPX 1,080-1,120 range on downgrade, unknown US bank exposure, and ECB printing.

4) FED launches (announced in late Jan or Feb) QE3 $600-800 billion MBS purchase beginning in March/April to deflate strength in dollar.

5) PM surge with gold breaking $2,000-$2,400 as flight to safety and inflation hedge. Silver touching $60.

6) Obama claims all is well with unemployment in the 7.5% range, stocks above last years levels, and a new "deficit reduction plan" by Aug/Sept.

7) All falls apart again in 2013 as the stimulus runs dry and the dollar collapses.  Time to finally pay the piper and rebuild with a solid foundation.

 

  

Sun, 01/08/2012 - 00:05 | 2043283 disabledvet
disabledvet's picture

8. "and we all get to go play in the Rumpus Room when it's over."

Sun, 01/08/2012 - 05:08 | 2043736 StychoKiller
StychoKiller's picture

Best time to leave is just before the bullets fly!

Sat, 01/07/2012 - 20:46 | 2042935 IndicaTive
IndicaTive's picture

"We recommend buying the periphery when the commitment is made, even after a significant spread tightening. From then on, fade significant weakness in core spreads to swaps."

Can someone please dumb this down? I really am trying but sometimes my head hurts from all of this.

Sat, 01/07/2012 - 20:58 | 2042950 Whoa Dammit
Whoa Dammit's picture

That's banker speak for "We don't know what the fuck to do, but we can't let on to the sheeple that we don't know, so we will spout obtuse BS while pretending to be of superior intelligence." ;-).

Sat, 01/07/2012 - 20:49 | 2042939 navy62802
navy62802's picture

Europe will continue to invent ways to drag this saga out as long as possible without facing the music. We all know what the ultimate conclusion is ... the dissolution of the European Union and ultimately, the Euro. But don't expect this to happen in short order (i.e. within the next 6 months). This crisis has, in general, been a slow-motion train wreck. And there is no reason to believe that the train wreck will suddenly pick up speed. No. I believe that the corrupt bureaucrats running the respective European nations will draw this crisis out even further, until they are completely out of options. Hell, I wouldn't be surprised if they went to war before they went bankrupt. I do believe that they are that depraved.

Sat, 01/07/2012 - 21:05 | 2042960 Problem Is
Problem Is's picture

"a departure of a country from the Eurozone would lead to amass splurge in purchases of guns, spam and gold..."

Tyler Hyperbole
Spam? Really Tyler, Spam? When both tuna and pink salmon have a shelf life into 2015...

You're stocking your Armageddon bomb shelter with spam? Where did you grow up... Subic Bay??

Otherwise... great post...

Sat, 01/07/2012 - 21:14 | 2042977 pine_marten
pine_marten's picture

That's some fine tongue and cheek there prob..............

Sat, 01/07/2012 - 21:17 | 2042983 Problem Is
Problem Is's picture

Back at ya, beerhippy...

Sat, 01/07/2012 - 21:15 | 2042980 Tyler Durden
Tyler Durden's picture

Not Tyler. UBS. Which you would know if you actually read the attached hyperlink (posted here previously) in which UBS advises you to buy "Precious Metals, Tinned Goods And Small Calibre Weapons"

Any other generalizations?

Sat, 01/07/2012 - 21:21 | 2042993 Problem Is
Problem Is's picture

Sorry Tyler... I got lost in the in's and out's of your double quote marks...

Just lazy I guess...

I suppose that is why some bloggers always indent when quoting or citing others...

Wasn't "Otherwise... great post..." a generalisation?

Or do I owe the compliment to UBS?

Sat, 01/07/2012 - 21:26 | 2042998 Tyler Durden
Tyler Durden's picture

Sure - then again their ulterior motive is to get the Fed (so you) to bailout Europe (again), and incidentally, them...

When confused about UBS' desperation, or anything else for that matter, always refer to this chart (first posted here in February 2010) - it was our #1 clue that Dexia was going under.

Also incidentally, it was in February 2010 that we said:

The question which pundits should be focusing on is once the Greek crisis flares up and takes down several peripheral non-hosted banks, just what the interplay of a "falling domino" scenario will be not only on neighboring European countries, but also on the holdings of their domestic banks. Because it is inevitable that the same kind of bank run witnessed in Greece, will become a pervasive phenomenon and impact Portugal, Spain, Italy, etc, which would be the precursor to a global bank run.

For a fringe lunatic gold bug blog we were oddly prescient...

Sat, 01/07/2012 - 22:12 | 2043055 Yen Cross
Yen Cross's picture

 Thanks. It just reaffirms my trade.

Sat, 01/07/2012 - 22:12 | 2043056 Rudolph Steiner
Rudolph Steiner's picture

...nicely. Hat Tip, preternaturally prescient, and well before I stumbled into these rooms. Thank you for keeping this small quarter of sanity in a distracted world.

Sat, 01/07/2012 - 22:26 | 2043075 PeterB
PeterB's picture

"For a fringe lunatic gold bug blog"

Talk about generalizations.... Just Saying

Sat, 01/07/2012 - 22:39 | 2043103 Tyler Durden
Tyler Durden's picture

...Or sarcasm

Sat, 01/07/2012 - 22:59 | 2043139 IndicaTive
IndicaTive's picture

I got the sarc, and I'm a n00b.

Sat, 01/07/2012 - 23:03 | 2043147 PeterB
PeterB's picture

So I guess you too don't own any gold

Sat, 01/07/2012 - 23:15 | 2043173 IndicaTive
IndicaTive's picture

Used to. Long time ago.

Sun, 01/08/2012 - 00:11 | 2043299 Bolweevil
Bolweevil's picture

Yukon Cornelius was a silver bug, no?

Sat, 01/07/2012 - 23:01 | 2043141 PeterB
PeterB's picture

Satire has never been my strong point but you on the otherhand sir is as dry as the Aussie outback!

Sat, 01/07/2012 - 23:09 | 2043159 Yen Cross
Yen Cross's picture

 No Sarc... SPOT ON!

Sun, 01/08/2012 - 00:07 | 2043285 disabledvet
disabledvet's picture

Now "where da white women at"...

Sat, 01/07/2012 - 21:30 | 2043006 Atomizer
Atomizer's picture


 

This is rather simple. Both of you have met a concession during the debate…. LOL

Monty Python - Spam

Sat, 01/07/2012 - 21:53 | 2043034 luna_man
luna_man's picture

 

 

Some, deserve, the necessary retort...Ahy, Tyler?...You'll make believers of them all.

MY MAIN MAN

Sun, 01/08/2012 - 01:50 | 2043546 Hephasteus
Hephasteus's picture

Can you buy big caliber weapons and use sabbots for better armor penetration or does it have to be small caliber weapons?

Sat, 01/07/2012 - 21:31 | 2043009 Hulk
Hulk's picture

Spam actually has a longer shelf life than Gold, but unfortunately is not edible...

Sat, 01/07/2012 - 22:15 | 2043062 Yen Cross
Yen Cross's picture

I had to do ( A ), Double take on that comment.  You are correct!

Sun, 01/08/2012 - 10:37 | 2043956 DeltaDawn
DeltaDawn's picture

Spam is good for barter, especially in the Aloha State.

Sat, 01/07/2012 - 21:11 | 2042970 Georgesblog
Georgesblog's picture

"Coercive"? Does that mean brass knuckles and rubber hoses? You can't squeeze blood out of a turnip. This signals the end of the Euro, no matter what happens with Greece. They will have to admit that there just isn't any more resources to feed the debt.

http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/

Sat, 01/07/2012 - 21:23 | 2042996 Tunga
Tunga's picture

Tunga backs the UBS / Santorum plan for the complete repave.. er. ah.. rebirth of the Euro Middle ages with Knights and swords and stuff. Really. Not kidding.

Sun, 01/08/2012 - 13:00 | 2044172 Things that go bump
Things that go bump's picture

How about pirates?  Can we have pirates too?

Mon, 01/09/2012 - 11:47 | 2045478 Tunga
Tunga's picture

Only part time. Full time Pirates don't phase in until the mid mid age.

 

 

 

Sat, 01/07/2012 - 22:08 | 2043048 ISEEIT
ISEEIT's picture

I don't know.

This whole game seems so orchestrated. Maybe I'm  just crazy but events are moving so smoothly toward an outright economic collapse. All the big players signal exactly that.

Chaos. And from chaos they will offer order.

The order will be North Korean style. That is the only alternative to freedom. A middle ground is only a holding pattern. Extremes always prevail (on a long enough timeline).

Freedom and genuine liberty is only scary for those who are at the top of this artificial construct of a healthy society that we all play 'nice' in today. When it blows up the 'winners' will get NAZI real quick. Systems don't go down nice. Artificial constructs die hard and freedom is not a birth right. Freedom is a responsibility and a gift that can be easily stolen.

Think you are exempt from history?

Think again.

Sun, 01/08/2012 - 00:12 | 2043303 MarketWatchTerrorist
MarketWatchTerrorist's picture

Most modern "democracies" are predicated upon the notion that men of power will act benevolently on the behalf of men without power.  This is a clearly flawed basis.

 

Government is the enshrinement of domination.  Nothing has changed when it comes down to the root of man's psyche.  We are still the same psychotic monkeys that were declaring ourselves God Kings in Egypt not so long ago.

 

As a libertarian that is of the "leave me alone and I'll leave you alone" mindset, I have recently concluded that the entire basis of libertarian philosophy is fundamentally flawed.  There are born tyrants among us today just as there have been throughout human history.  The only reason they don't raise armies and rape and pillage their way to power anymore is because they no longer have to.  Their domination is enshrined and legitimized via the governments that enable them.  Therefore, absence of government is the only way for man to truly be free.

 

Of course that is impossible in a world full of born tyrants.  Therefore, the only logical course of action is to become one of them.  Seek power for its own sake, because if you don't, someone else surely will - and once he achieves that power he will not wield it benevolently on your behalf.  Still the same dogs vying for the position of alpha we always were; also bitchez.

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