View From The Bridge: Going For Gold

Tyler Durden's picture

Submitted by Clive Hale from View from the Bridge

Going for Gold

There seems to be some surprise that the opening ceremony was “very British”. What were people expecting? Mongolian hordes; Eskimo Nells? The very pointed reference to the NHS being at the centre of British values will no doubt have gone over the head of Andrew Lansley (Secretary of State for Health) and most of the audience, who are blissfully unaware that his cunning plan is to emaciate the service so he has an excuse to privatise it on the cheap for the benefit of his “friends”. A tactic Mitt Romney would have approved of along with burying the “special relationship”, which he cares little for, as we have no natural resources, our armed forces are dwindling to mere crowd controllers and republicans have no use for a monarch. Having been part of the organising committee for the 2002 US Winter Olympics he may think he has the right to opine on the ability of the Brits to host such an occasion, but as David Cameron said, putting the games on in the middle of nowhere, Salt Lake City, compared to London, bears no comparison.

So we have two weeks of sport to take our minds off the global financial malaise. The EU commissars have all gone on holiday, but not before Mario Draghi (ECB Chairman) announced that he will do whatever it takes to save the euro. Really? His statement did knock the Spanish 10 year bond yield back below 7%, but this had become a one way and illiquid trade that was due for break. We have seen it all before with Greece. Denial, denial, denial all the way until days before default restructuring. Talking of which, the Greeks think they are in line for a further handout. Those whirring sounds you can hear in the distance are printing presses knocking out “new” drachma.

The question being asked now is, “where are the risk free assets?” In truth there have never been any. Cash has rarely, if ever, beaten inflation and are there any bankers left that you trust? Last week Barclays put aside £450 million to provide for “Lieborgate” claims stating they had no idea what the final figure would be. Try adding a few more “noughts” guys and you might be close. Government bonds always manage to flatter to deceive in the end as inflation inevitably finds its way back into the equation. You will have done very well in gilts over the past two decades (10%+ yields in the early 90s) but at 1.5% now I would hardly call that a risk free investment.

The reverse yield gap disappeared a long time ago and equities (and high yield corporate bonds) are touted as the place to go for income but are certainly not risk free either. And do remember that corporate debt is priced as fixed interest on the way up, but like equities on the way down...LTRO 2 a la Draghi or QE3 from Ben’s helicopter may help for a while but neither of the previous such operations have had any long lasting effect and there are no logical reasons to believe that a further dose should produce a different result, unless you have been taking the Keynesian medicine from an early and impressionable age.

Along with Team GB, I will be going for gold. Not a totally risk free option I grant you as Cav found out in Saturday’s bike race. My money is on Bradley for the time trials; he does have a “yellow” jersey to his name after all.

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francis_sawyer's picture

This article wins the gold medal for rambling incoherent babble... cue GOD SAVE THE QUEEN...

runlevel's picture

thanks for the warning. <goes back to ZH front page>

Treason Season's picture

Even got the quote attribution wrong,

“Of course, it is easier if you hold an Olympic Games in the middle of nowhere.” London Mayor Boris Johnson cast aside diplomatic niceties ...

Silver Bug's picture

Gold and Silver are the tier one risk free assets.

Tirpitz's picture

And their weekly charts look currently extremely promising.

Not to forget the long bonds on the short side.

Levadiakos's picture

How much silver did you buy north of $50?

Lord Koos's picture

"Cash has rarely, if ever, beaten inflation..."


WTF, maybe the stupidest thing I ever read in a piece about inflation..

Bay of Pigs's picture

Sorry, but who is Clive Hale and why is he an expert on gold?

Come on Tyler...

veyron's picture

Clive hale brings the same level of expertise as Glenn Beck and goldline ...




francis_sawyer's picture

Paul Krugman is a Nobel Laureate & Barry (When I don't have a teleprompter I say things like "You didn't Build That") is the leader of the free world (as well as a Peace Prize recipient)... LOWER YOUR FLAGS in honor...

Levadiakos's picture

Sprott is a prostitute. Reputed.

PontifexMaximus's picture

Draghi had to do his duty: tranquilising markets. He did it. Holiday season is ahead. Forte dei Marmi, Costiera Amalfitana, Juan Les Pins, Saint Tropez, Porto Cervo, the Leaders won't be disturbed. Don't forget Sölden, Angela is doing her rest with her husband. The libretto is written, move on, nothing will happen.

knukles's picture

I thought Angela was married and had a wife?

DavidC's picture

Just like last August?


debtor of last resort's picture

Spoiled ZH readers....

Bay of Pigs's picture

No, I'm more concerned this place has been sold out and the original Tylers dumped.

Can you explain the editorial changes? They are rather obvious to me.

JohnG's picture



Have a look at the copyright notice on the very bottom of every page.

I don't remember there ever being an "ABC Media, LTD" there, but I noticed it back during the late "unpleasantness" when for at least a few days we had to go the site.  Also, the wording at the legal" link has changed.  This was several months ago.


Bay of Pigs's picture

The Tylers used to attack GS mercilessly. I don't see that anymore. In fact we get Biderman everyday who's Trim Tabs in partly owned by Goldman Sachs. 

Is my Tin Hat on too tight?

francis_sawyer's picture

I still come here for the 'Snorg Tees' click ads... Robot Traders incisive views on what happened YESTERDAY on the S&P... MDB's take on world politics... &, of course, all the INVALUABLE troll links to personal 'Elliott Wave' crayon drawings...

Oh yeah... & of course to get beat up everytime I suggest that that matzohs were a bit lumpy this time around...

Mr Lennon Hendrix's picture

How dare you guys!  Biderman is a genius!  His call on FB has made me millions of farmville credits!  I am sure Tyler is as big a fan of farmville as I.  Truely genius, this guy Biderman.

And the people who can't understand how inflation/deflation works and why, well I appreciate their crayon drawings.  I appreciate they have no idea that the underlying metric, the dollar, has zero intrinsic worth, and therefore all dollar denominated assets have no fair value.  So when people scream that deflation is coming, like Keiser or Bob the Bear, I laugh because how are they coming up with these theories when we can't find equilibrium?

And about Bay's point that GS owns Trim Tabs, well, Nomura did insider trading and ripped of their clients and as Bob the Bear is featured regularly, maybe Tyler has a thing for ripping off 401ks and what not.

francis_sawyer's picture

francis_sawyer has (2) 'FARMVILLES' going at once...

One of them I actually eat from... (I know hedgeless horseman knows what I'm talking about)...

debtor of last resort's picture

Maybe one of the two Tylers is on vacation? Copy paste kind of stuff? I hope you are wrong, but i will watch it, thanks for the info, i didn't notice.

RockyRacoon's picture

The proof in that pudding will be if Biderman starts singing a different tune -- or disappears completely.

francis_sawyer's picture

Why is it lately that if I'm logged on to ZH... & then leave my browser open & unattended for a bit to go outside & do some work or something... I come back & there are 2 or 3 other browser windows opened up (for anything ranging from 'CHURCH TALK RADIO' to 'BRITISH TEEN POP' stuff)?... Weird...

I'm sure it's nothing to worry about... Happens all the time...

veyron's picture

GS invests in Biderman, Biderman Pumps FB, Investors fleeced as GS dumps its positions.


If I didn't know better I'd say Biderman did his duties to GS ...

debtor of last resort's picture

Hope not. First thing we have to do is to free the Tylers from some Fema camp when SHTF. But it's always good to have scouts!

francis_sawyer's picture

 "Everyone has a plan until they get punched in the face"

~Mike Tyson

debtor of last resort's picture

They drew first blood.

John Rambo


"Sheriff, that's your wife on the back of my horse."

~Steve Miller

debtor of last resort's picture

Don't worry. Hard times ahead. People mostly become a bit paranoia in this weird environment. ZH is OK. Let's hope they don't get Assanged.

gwar5's picture

It's a weekend and fewer viewers, so fewer articles and more esoteric topics and guest posts. But it's a very nice balance to the firehose of information on the weekdays when the markets are wide open.  I like it all.


I especially like it when a guest post defending global warming is periodically thrown to the ZH wolves. It's a feeding frenzy and keeps us on our paws.

foxenburg's picture

"the opening ceremony was “very British”"


well, that was more tactful than saying it was very crap.


this article was very british.

q99x2's picture

The way I see it that the big banks are hot wired into the financial markets. One flip of the switch and they move all chips to their side of the table. They are prepared to take this sucker down.

Time to get my lease at the marina.

infinity8's picture

Jeez guys, lighten up - you just have to read it with a british accent.

Clive is on the ZH reads list <-- , just sayin'.

francis_sawyer's picture

Well if he'd have used 'Rowan Atkinson' as a pen name, I might have been more enthusiastic...

JamesBond's picture

.LTRO 2 a la Draghi or QE3 from Ben’s helicopter may help for a while but neither of the previous such operations have had any long lasting effect 


depends upon your definition of "effect" ...



gwar5's picture

Thank God the Brits had enough sense not to roll out Austin Powers to brag about their National Dental Plan for opening cermonies. 


I was totally nauseated at the NHS socialist homage at the opening ceremony.  The London Olympic stadium seats 65,000 -- which is exactly half the amount of the 130,000 human beings we just found out that the NHS purposely euthanizes each year to save their bloated payroll of government union NHS jobs. Shame!

Britain has only 60 million people, yet their National Health Service system is the largest single employer (perhaps #2 behind India's rail system) in the world. The more people they kill, the fewer NHS employees they must lay off.

If the NHS model is the Obamacare model, then 650,000 elderly will be euthanized/yr in the USA. And these planned deaths do not even include the tripling of the cancer mortality rates among all ages that is mathematically going to occur.

Glorifying the NHS anti-humanist system at the Olympics looks to me like a publicity stunt to try to overcompensate for the Institutional horrors they have created. Austin Powers would have at least made some people laugh.


FieldingMellish's picture

Very few people use the NHS dental system in the UK as there are very few dentists who would work for the pittance they pay. British teeth are down to genes, poor hygene and a resolute determinism not to be Americans with their "big teeth". They believe yellow, crooked teeth gives them "character".

Obamacare is nothing like the NHS. Not saying its necessarily a good thing but you are mixing your apples and oranges there. If you are going to argue against Obamacare you will need to know what it is and what it isn't. Universal, single-payer health care it is not.

DeadFred's picture

Sellout to the insurance companies, lawyers and AMA is what it is. The finest medical system any fascist government can provide. I could have lived with single payer or with the staus quo but they gave us the worst of everything.

gwar5's picture

The AMA endorsement thing is a bit of a misleading fraud by BHO.


The AMA is mostly run by just the socialist leaning academic docs and all of AMA only represents 15% of all docs.  The real docs don't bother with the politics or smoozing, so they lost out by being asleep at the wheel and are pissed. Many MDs will now quit or allow themselves to be bought up by hospitals, which will add another bureaucratic layer beween patients.

Thought experiment: What if we ran the Judicial system like the medical system? Call it, ObamaCop.

Bureacrats in DC will decide everything on case of rape purely based on computer data and sentencing outcomes. Very quick. No juries, They decide everyhing, no review, and no appeal. The defense lawyers will be there just to carry out everything DC has decided on the case and to do the paperwork to make sure it's all proper and legal. If the defense attorney insists they have a perfectly winnable case, they could go to jail for disobeying and asking for a jury trial anyway.

That's ObamaCop, and people would be ouraged even in accused rape cases. But that is Obamacare and what we are doing to our best people who played by the rules and have faithfully paid into the system for decades.





gwar5's picture

The Brit dental system is also a euthanasia system, except it's for teeth. Brits hate their shitty crooked yellow teeth but all the Gov money is sucked up into their bloated NHS. Like I said, they'd rather euthanize 130,000 seniors per year and have bad teeth than lay off any lazy union NHS. I had brits for next door neighbors and been over there to visit as well and they readily admit Brits make more pompous excuses about their shitty teeth than a guy caught with his knickers down on top of a fat chick. 


As a physician I know exactly what Obamacare is, and what is in it.  It is still being written behind closed doors by the most corrupt adminstration in the history of our Republic, which is not a pointless rant since it will decide who will live and die.  (BTW, Obama's father was a British Citizen and that alone makes him illegal, and it doesn't matter where he was born geographically). 

Obamacare is modeled exactly on the NHS  -- but with it's own special American 150+  agencies that are there to purely review and spare (on political basis) "special" protected groups from going before the death panels, aka IPAB. Special protections are being based on: union cards, race, and religion such as the muslims. These groups shall all be spared based on affinity to the Obama regime, just like it was in the old USSR.

For doctors, they shall be forbidden to render treatment to a patient unless it is approved by a panel in DC. Treating a sick or dying patient against said approval shall be a criminal offense and result in $200,000 fine for first offense; the second offense is subject to jail time.

Should a person wish to take their own money out of the country to obtain care, they will increasingly find capital controls will prevent that. They will be ttrapped in the USA to die and the US gov will be able to confiscate their estate, largely still intact, upon their death.

There is something inherently grotesque and evil in a system in which a insolvent government insists upon deciding if you shall live or die but has an indisputable vested interest in your death.




Haddock's picture

Be sure to keep taking your medication.

Nozza's picture

130,000 euthanized each year? Good grief - you believe this shit

It may not be perfect, but euthanizing 130000 a year? Get real. But it does make for good conspiracy....

gwar5's picture

Sorry to say, it is absolutely true. They deny them care and let them die, which is also the prescription for Obamacare. This latest NHS scandal was just recently reported and it made fairly big news. You mean to say you honestly didn't know or even hear about it? 


It was already pretty well known that NHS was doing this, it's how they "save" money. The only real shocker was the huge size of the actual number being killed off. It had  been obfuscated and hidden for such a long time in the unaccountable bureaucracy. It is institutionalized murder. 

Yes, 130,000 old people every year is a holocaust.  Unbeknownst to them, patients were secretly put on the NHS's "Death pathway" instead of the Treatment pathway" so they would die of exposure from their affliction. The whole time the patients unwittingly thought they were going to be getting treatment as they were getting sicker until it was too late.

The atheists and socialists claim to be a caring and "humanist" but this is systematic murder, and they are not outraged. How can this be? They are not ouraged and defend it. This is worse than the African natives leaving grandma in the woods for the animals. At least she knew nobody was coming back for them. Elder Health 


So now that it's true, what do you do about it?  Quit socialism, or just pretend it's not another dystopian lie and go back to figuring more ways to killing people?