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'Zee Stabilitee & The Wealth Effect' - Name These Two Charts
UPDATE: Answers Provided
- Chart 1 is the real value of the German stock market from 1914 to 1927 (and the lower chart is the nominal price)
- Chart 2 is the real value of the Dow Jones Industrial Average from 1999 to Present (real = adjusted for the value of Gold)
A century apart and a continent apart. With Bernanke's fingers now glued on CTRL-C, perhaps the reality of these two charts suggests it's really not different this time at all...
Chart 1 - Zee Stabilitee
Chart 2 -The Wealth Effect
Can you identify what is being charted in each of these images?
Doing so may help to lift the veil of Bernanke's (and Draghi's) Grand Plan.
Charts: Bloomberg and Bridgewater (Page 136-146)
Hint: Below is the nominal version of Chart 1:
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splunge
http://www.youtube.com/watch?v=3v0I4OQi7CQ
yes but the paper and the ink is different this time!
The Republicans do the Polka dance clockwise to the right,
The Democrats do the Polka dance counter clockwise to the left.
That's the only difference.
Meanwhile, we all try and find the still-point in the swirling maelstrom.
Add in CFR control freak nonsense and it means we're all screwed. That's what the charts mean. Look at all the pretty bubbles. I'll get into that CFR bullshit another time.
But let me give you this for now;
Dick Cheney ex-director of CFR talks to David Rockefeller
http://www.youtube.com/watch?v=BbnpN07J_zg
Academics of modern economics screw everything up and give me migraines.
http://www.examiner.com/article/video-cia-aids-and-abets-terrorists-with-funds-and-weapons-to-sustain-war-on-terror
OBAMA ADMINISTRATION ACCUSED OF FUNDING TERRORISM IN IRAN
http://www.youtube.com/watch?v=GZRbLnbTtbo&feature=player_embedded#!
You've just got to get rid of your fears for a little while.
Till things blow over.
P.S.
These last few comments are talking points memos for tomorrow.
Discuss.
Looks like CNN is launching a hatchet job on BO, just in time to get the two sides closer to a 50/50 split within .001%.
That's their job.
Talk to yourself often????
No I don't.
Yes I do.
Crap....shut the hell up!!!
Hey, don't look at me....he started it.
Following Bridgewater link shows chart 1 is German stock market real returns, chart 2 must be our market in gold terms...I don't have a Bloomberg machine to determine which market but don't it look ominous...
MAHA-BINDU ! BITJZES! s'cuez my capitalz tylerz....but is that a trick question? there are three charts......( man-o-nash! i missed the hint)
The answer is; They all pretty much fit together and/or when inverted upon each other?
P.S.
Putainpan, I loved that movie and may watch it again.
But you forgot to wish Barry and Michelle a happy 20th wedding anniversary.
Those two are Irrelevant, and they're just as Irrelevant as you.
9 Weeks, 5 Days.
You're SO important, big man.
Forgive me for having a life and not being able to comment on ZH for 17 straight hours on a Saturday.
Get over yourself, bitch.
9 Weeks, 6 Days.
So ou quantify your relevence based on how long you have been a ZH "member"? Damn, way to pull rank, big man!
How does it feel to live with such a great void? I almost feel sorry for sad bastards like you.
I've been out back working on my new currency carrier, since 15 wheel barrows welded together is a little "cumbersome".
The 8 HP Briggs and Stratten has been scrapped in favor of the 400CID blown small block to move the paper from the back yard to the front yard.
Pretty soon, chart three will simply be a line overlaid on a grid, reffered to only in angles.
erg says: "splunge"
pretty sure that means something dirtyzee dime year notes!
Print for me my bitch, I have my own retirement plan.
Chart 1 =purchasing power of the dollar?
purchasing power of a weimar dollar.
Unbezahlbar Chart 2, the same. Different century.
Chart 2 looks like FAZ, TZA, and DRV.
the big difference is that FAZ will go parabolic, while chart 2 is all downhill.
1 and 2 are value of the dollar. 3 is money supply.
Tyler the " IP's are stomping on ya! Had to use my cell phone with "Opera 12" to get through. Your site breakdowns are becoming more " Prevelant"!
NSA overhead and freenet has been crawling in the tunnels.
"prevalent" issues. Sorry for not isolating, sentence structure. That was un-acceptable.
It means that nominal value is the only thing that matters to central planners.
Chart 1 German Mark
Chart 2 US dollar
I changed my mind. I agree with Missiondweller.
-1
Until you enlarge that avatar
Chart 2 is Dow priced in gold
Yup!
Chart 1) German markets priced in gold (real terms)
Chart 2) Current DOW markets priced in gold (real terms)
Chart 3) German markets priced in fiat (phony baloney terms)
Deutche Mark, and it's freely traded. Greece is toast! So is Spain!
Italy will barf for concessions like Greece. Greece will be toast in 60 days, and it won't be a big deal. All the small " Club Meds" will follow suit. Portugal, Cypress, ect...
And today it is not German Mark but the Euro.
Did anyone notice that gold in Euro is actually cheaper this week than it was the week before?
I'm guessing chart 3 is German nominal debt/GDP?
Deutsche mark and the dollar buying power.
Englai, I'm " Portugal" long "Deutsche Marks"! That currency is beautiful, and in circulaton!
Yen, buy the ruble...physical...russia just raised interest rates...they are peepping for a prominent role in the next reserve currency
Kito, or Kitko? Metal Head!
did you open that renminbi savings account yet?............
3.762573 years ago. Long singapore / BITCHEZ/
real returns vs nominal returns of the German markets. Chart 2 Real returns of nasdapple?
I think that Max Keiser's site is being "disrupted" by JP Morgan if not the government. One server never stops downloading. Waiting for.....to respond, etc. It can actually lock my PC for 30 seconds at a time. No other site does that. Come to think of it, that delay might just be the CIA searching my hard drive and emails. No doubt I am a suspected terrorist. At least they can't throw me away w/o a hearing since that judge reinstituted habeas corpus while shredding the NDAA.
Frankly I wouldn't be surprised to see Stacy and Max go the way of Jimmy Hoffa. That would be a real loss for the world. I hope that they are taking precautions. Jamie Diamon never accepts Max's invitation to appear on his show. I love the way Max rips Diamon - no holds barred. He was excoriating Geithner today:
http://maxkeiser.com/2012/09/15/kr341-keiser-report-collateral-transform...
Just because you're paranoid doesn't mean............
..............ok, what already!!!
...they're not really after you.
If you're not paranoid, you're not paying attention.
think george washingtons' recent share on courage.....either that or they both have squirrelly end on al gorish carbon bucks.
(actually it might be their linky to the poor journalist gal from jersey who was trying to expose the rape of her island/the world)
but either way rest your weary mind that max and stacy are moving steadily closer to the belly of the beast....stay tuned!
German stock market priced in gold?
I was close! It was the stock market however.
Anyone care to guess the unemployment rate in Germany the Summer of 1922?
It was 1% bitchez.
Wheelbarrow inventories then and now?
Cheers bitchez.Much better than charts bitchez,a?
German gdp, and chart 2 is purchasing power or dollar index of the us dollar
right tyler?
Chart 2 is Dow to Gold Ratio
Honestly Tyler, I don't understand half the charts you post when they ARE labeled. This is just plain mean.
We don,t need more charts. Look around people; The times they are a Changing and you better start bullion or sink like a stone.
PM charts on the fridge.
close, germany real stock market, and us stock market
I am a simple man. does this mean I get more money?
Yes! So much, in fact, you may start burning it for heat in the winter. Rich!
I cheated to learn the first, so I won't say.
Maybe the second is IBEX. I can only check it back to '08, but it looks close.
Stock market to gold ratio, first in Weimar Germany then in America. The comparison is valid but with one huge difference between them: back then there was still a currency backed by gold while today it is a totally fiat situation... meaning today you wouldn't sell your currency as fast if you knew the others were giant turds while back then there was still paper flying around with a guarantee on it so it was an easy decision which paper held value and which didn't when it was crunchtime.
Yeah I'm fairly certain you're right. I think my answer was wrong.
That's the point. No paper currency is now safe. As Dalio said in his interview in the former ZH post, gold is THE BEST. However, since there is not enough of it to go around in this modern financial system, it cannot be used as a currency nowadadys. He also said anyone how does not hold at least 10-15% gold in thier portfolio is ignorant of history and what is happening right now.
His interview is long but well worth watching.
My guess is that these are the (either inflation-adjusted or gold-denominated) stock market valuations for Weimar Germany and the US present-day.
LMAO, thought it was Faber for a sec.
http://www.youtube.com/watch?v=Hi3bFg0dLxo
how low can she go?
http://research.stlouisfed.org/fredgraph.png?g=aJq
Pack up your SHIT! and head to the Forrest!
The third chart is the number of citations issued in German beer gardens for serving beverages greater than 500mL.
It's all related.
Something tells me this isn't going to end well.....seems like things are rhyming.
The chart? +163% on the bounce?
Meteor Shit!
first chart is the cost of a hooker, priced in passports
those first two charts look like my bank account
Checking account inflows, 2006-present.
Graham Summers newsletter sales and the last one is the drop off of his subscribers.
The BBG chart maintained a Ratio; 44/63 tops. The SIGMA is 23%0 The average , was Flat! 33.453%-44.56593%
Initial projections! I realize Tyler will out/do me by 4-5 (percentage points .0000). " Ten Thousandths"
South Park banking ..... and itsss gone.......
I implore you? Show me your " Mathmatical derivitives". It's 102 on the coast in Cali. / I'm retarded-hell bent( from the heat!
The second chart suggest that we have reached the bottom! Should we all now sell all the gold we have got and start buying $INDU?
I bet Bernanke has the Ace in his sleeve. Next thing you know he will announce US Gov have 16Trl tonns of gold and will start dumping it in the market.
Or even better, he will back each $50 paper bill with gold buffallo.
No, this will not play... There will be mile long lines of people willing to exachange their paper... Wait, what about the second graph? Should people get in line to buy $INDU with their buffallos?
We discussed (DXY) Friday. It will gap up IN Asia. The DXY will form a (S/T) top before all the douch`e bag (ACB's) clear out their $ long positions.
Some where "74" would be my target. I have a hunch something"geo-political" is going to scare the shit out of the markets.
Long($)
How high do you expect it to go, before it turns again?
I'm sure that since the entire world will be experiencing hyperinflation simultaneously this time, we will fair much better than Germany in 1922-23! Plus we have electronic currency! Using modern computers we can easily process everyday transactions involving numbers that reach into the quadrillions. Ben can also lop off 0's every few days with Ctrl-A Delete. This is gonna be fun.
That would be real returns of German and US stock markets over said time periods.... and, nominal returns of the German market circa Weimar period. Seriously, you mean you guys didn't read all 130+ pp of Ray Dalia's (Bridgewater) report?? Baby fat, Bitchezz!
Anyway, Dalia (and TPTB @ CFR) is in love. He thinks this is just gonna be the best deleveraging ever... Thinks Bernankistan has avoided the usual hard deflationary part of deleveraging (defaulting) before the inflationary part. Ergo, it's now all clear to invest accordingly for the big inflationary part, ie., PMs, hard assets.
Problem is, I don't think the scenario has ever happened to a global reserve currency which is a few months away from getting that status revoked by the gold hoarding Chinese, Russians, and the Benevolent Order of Muslim Brothers with Oil. Neither are jobs and wage inflation anywhere on the US horizon to keep up. My guess is deflation (Stagflation) is going to be there but with inflation of essential things like food and gas which won't affect and guys like Dalia!
My comments are SHORT TERM! One week at most!
Hey, Yen! Don't be cross... I simply can't do multiple short snarky comments like you guys on a thread, it would take me hours/days.
I'm in the mountain boondocks with a tenuous WiFi patchwork connection that goes in and out. I have to pick my spots and just do a few long comments, and can rarely respond in timely manner. Btw, I always enjoy reading your comments and I gave you the up arrow because that was damn funny!
Bumper sticker: God Bless WiFi... especially my neighbor's unprotected signal.
No response from labor when an ambassador gets cooked. what does that tell you? more importantly, what does that say to every public, private and non-profit politician globally?
"non-profit politician" Hahahahaha, pardon the pun but, that's rich!
both charts beg the question -
when will hyperinflation strike the USA?
jb
The first diagram shows german equities (stocks) vs. hardbased currrency (Goldmark, $, GLD), 1913 = 100% . The second: US-equity (stocks, e.g. SP500 or DJ) vs GLD. The third shows german equities (1913 = 100%) recalculated/adjusted with GDP-deflator.
CTRL-P
CTRL-ALT-DEL
It's that bad? I had hoped ALT-CTRL-F4 would be enough.
Best thread ever for why the other 49 states don't have a Wall Street. Why should New York State? There is no provision in the US Constitution for Wall Street. Shut it down.
The charts don't mean anything, they are just a diversion to give ZH aficionados something to do while waiting for WW3 to break out in the Middle East.
...doing GOD's work...GS-DickinDaMuppets
Hey guys here's a question. I'm not making any assertions. just tossing my thoughts out there.
At the core of it, is hyperinflation any different from hyperdeflation in terms of real household wealth? I'm talking about the households who cluster ± 1.5 SD around the mean (the main bulk of the population).
Aren't they simply two sides of the same coin? Are they simply two possible effects of a common cause?
IF REAL tangible wealth (food and energy) reaches a point where it can no longer sustain a given population then you now have a shortage. This will cause the price of food and energy to rise. People will be forced to reign in their discretionary spending which, left unchecked, COULD result in hyperdeflation in non-food/energy goods. And if this happens then all those businesses close down and people's material possessions become totally worthless (ie. their wealth diminishes). People focus on trying to feed themselves and will trade almost anything to get food and energy.
OR we call in the central bankers and they just pump out money because they think that it's simply a matter of low consumer confidence that people are no longer spending money on crap. "It's only in your head that you can't afford to eat or pay the heating and electricity bills. Here, have some more tokens and go buy an Ipad". And so the central planners pump trillions more tokens into the game and we get hyperinflation. In this scenario, the printing of money does nothing to create more food and energy supply. People have more tokens but the food and energy cost heaps more. So they are in much the same situation as in hyperdeflation. Only difference is that they are trying to work out how to actually eat the stuff they grow on Farmville, while they jerk off to photos of random women on Facefuck that they access on the 30+ Ipads they have laying around their cardboard box).
So in terms of household wealth I do not see any difference to the average person in a hyperdelfationary cycle or a hyperinflationary cycle.
Bear in mind I'm not making any points about which option gives the best liklihood of economic recovery. I'm just talking about the PAIN caused during these two cases. To make my thought clear: I think that if you were the common denominator you would be fucked in hyperinflation or hyperdeflation.
I would say that one difference is that while hyperinflation has been seen dozens of times in monetary history (but mostly in the benighted 'Age of Fiat', i.e. the last century), hyperdeflation has NEVER been seen even once. Even plain old deflation has been vanishingly rare, while 'ordinary' inflation is ubiquitous and ever-present under every fiat currency regime.
One other thing ...you (mrp, that is to say) seem to think that hyperinflation is the same as inflation, only worse. Not so. Inflation is a monetary phenomenon, whereas hyperinflation is not.
I'm not sure if I said that. But thanks for commenting.
I think I said that hypoerinflation is caused by a shortage of food and energy. And that is not a monetary phenomenon.
And hyperdeflation is also caused by a shortage of food and energy.
Which option we choose may make very little difference to the impact on the average people.
Unless we can increase the food and energy supplies then the people keep getting poorer.
Every Sunday, just about this time, I feel glad that I am a retired snowbird that lives in a litle town in Baja Sur, where our real concerns are which beer, what fish and no politics or business.
Every Sunday, just about this time, I feel glad that I am a retired snowbird that lives in a litle town in Baja Sur, where our real concerns are which beer, what fish and no politics or business.
Cannot wait for the DOW to be 5,000,000!
Are you saying gold to be $5,000.000 per troy ounce?
Approaching hyperinflation. We can only hope the result will be different from that of Germany's. But... yes, it sure will, this time is different after all.