Apr 1, 2010 11:47 AM

DESTROY ALL THE SHORTS

The delinquencies keep rising because the UE check ain't enough to pay the mortgage, and paying mortgages is so 2005

Apr 1, 2010 12:34 PM

Wrong.  Just flat effing wrong.

In this market, you have to *avoid* stocks with good balance sheets and strong dividends.  You have to buy the most bankrupt issues, those who have massive CRE exposure, or who are paying dividends in stock.  Those are your big winners.

lol lol lol

The weaker the balance sheet, the stronger the gains hahahahahaha

Apr 1, 2010 12:36 PM

RMB = pegged to dollar and printed with abandon.

Maybe it achieves what the JPY has, but no more than that.

Apr 1, 2010 12:39 PM

I can't see the funding coming from anywhere other than monetization.  There simply isn't the free capital out there.

Either that or it's a carry trade thing.  If it is, then when it unwinds...goodbye

Apr 1, 2010 5:25 PM

THERE.IS.NO.SOLUTION

Clear?

The mathematics of debt-based monetary systems make implosion of them INEVITABLE in a finite system.

Apr 1, 2010 5:30 PM

There's no solution.

Just accept that and try to maintain your own sanity.

Think about this: without the discovery of oil, let's say oil never existed.  We wouldn't be here having this conversation right now.

Look around you...everything we've built...oil.  I went out for a MC ride and saw all the cars whizzing by, all burning gasoline we dug out of the ground.  And it's amazing.  And the more we've pumped, the more cars we can drive more miles.

Well, in 2005, we crossed an absolute threshold where we hit the maximum net rate at which we can extract this magic substance.

Look at the oil age, what, 200 years?  Less?  100 if you include the airplane or a real notion of an automobile.  That's 100/2,000,000 of human existence, 100/10000 of civilization, which isn't even recorded history.  All this built on the last 100 years of growing the rate at which we pump free energy out of the ground.  And that rate peaked a few years ago.

We can all either get caught up in trying to make 1-1<>0 or else we can focus on making changes.

There is no "solution."  Things cannot go back to the way they were absent a technical discovery on par with the discovery of oil itself.

Government and the people and finance and this claptrap is all so much bullshit.  Maybe the future will be a good one.

Apr 1, 2010 5:33 PM

How long do you expect to live exchanging that with other people?

3/4 of those calibres have one and only one use, and that's for killing people.  If those calibres are in THAT high of a demand, you will not live long.

You will be shot or grazed and die like people did 200 years ago when the same thing happened to them.  You want Civil War medicine?  Cut it out with the SOCOM Strike Team bullshit.

Apr 1, 2010 5:36 PM

They didn't actually open up new drilling.  They closed more than they opened.  Net will be down.

You assume Obama has a fucking clue...he's an empty suit, has been his entire life.  There's no METHOD to the madness, which is why I always marvel at all the conspiracy theory folks.

These guys aren't smart enough to be masters of the universe.

Apr 1, 2010 5:41 PM

Durden, did you hit your head?

The Fed is not a real bank...they will print their losses.  Anything they can do to manage inflation upward.  They're not going to let the mathematics of compound interest stop them until the dollar totally collapses.  And they will go to their graves NOT understanding wtf happened.

Bernanke fancies himself a student of the Depression, but he's just an economist, and very limited in his ability to understand reality.  It's going to haunt him and the rest that all of the shit they spent so much time learning was the FLAT EARTH THEORY.  It was bullshit built atop conjecture.

They are already totally consterned by reality's unwillingness to conform itself to their rate regime.  They won't understand why more oil supply doesn't just make itself available at these prices.  I doubt 1 in 100 people understand why that is.

Economics is not the study of reality...it is the study of unproven conceptual assumptions followed by the attempted implementation thereof.  BB is doing exactly what he learnt to do in his "study" of the Depression, what he and others have convinced themselves to do.   And it's wrong.  It's all wrong.

The institution he works for has no viability in a contractionary economic climate.  His basic product is like whale oil in the 1860s or the telegraph.  It has no future.

Apr 1, 2010 5:56 PM

Hariri...lol.

His children are among the richest minors on earth, billionaires.

Remind me what he invented or the businesses he owned or the great capitalist he was.  Like, say, Arafat or Bhutto.

Apr 1, 2010 6:01 PM

No...it's not containable.

They keep going to the book...it is a SYSTEMIC problem.

The problem is that the very money they think is "capital" is actually DEBT.  Debtmoney ONLY WORKS in an expansionary economic climate.  In EVERY finally saturated economy, you see deflation as credit contracts and there starts to be systemic competition for the access to money to pay the interest claims on today's debt.

At its core, all comes from the Oil Peak.  Period.  The aggregate expansion phase of the globe is over.  Paper promises of a future of more must be discounted now that the future holds less.

These idiot economists keep looking at their stupid equations and metrics on MONEY on PAPER for an answer; the answer is in the real world.  We hit energy supply maximum.

Apr 1, 2010 7:07 PM

They won't figure out how much your guns and ammo are worth and come for them???

Apr 1, 2011 11:34 AM

well there will be less Toyotas and Hondas so here's GMs chance!!!

The Enclave is a decent looking vehicle, but it's still like 40k, right?  I mean cmon now.  The college grads who get jobs are buying Kias.

Apr 1, 2011 3:49 PM

maybe it's cerenkov from fluid inside your eyeballs

Apr 1, 2011 3:55 PM

ionization from passing neutrons?  interesting...

Apr 1, 2011 5:34 PM

The French carrier battle group is there.

This is appearing to go exactly as I thought when I said a week or so before the shit started that the cynic in me said France was going to try to do this as an operational experience-building exercise.

This is a lower risk war for them than something remote.  They can support whatever happens here with their airforce if necessary, but they want to practice the naval air power projection and amphibious landing portions of this colonial military skillset, for whenever they need to extend their projection to a place like Ivory Coast, or anywhere else outside the combat radius from Corsica.

Apr 1, 2011 9:19 PM

redundant article...

One point needs to be taken to heart "without isotope analysis," there is no way to know wtf is going on either in the water or on the land.

Is the geiger guy in Tokyo still broadcasting?

Apr 10, 2010 10:37 PM

This is a popular perception but it's inaccurate.

The banks *needed* people to do exactly that in order to grow the credit base.  The credit base MUST grow as a mathematical artifact of the monetary debt-based system.  So they in essence had to make these loans to these people.  They ran OUT of good credit risks. 

The people were only the part of the iceberg above the waterline; most of the rest of the transactional loop was derivatives, CDOs, securitization, leverage, CDSs, CDO squareds, etc., etc.  CDOs built out of the CDSs and IRSs that traded along with the CDOs in the first place.  The person was just the live body needed to support this mountain of debt.

You have been paying for your privilege of using the FRN anyhow; it's not like this was free ever.

Don't hate on the neighbor; look at what the USG has put you on the hook as a taxpayer for.  It DWARFS your neighbor's mortgage.  Would that this were all we had to pay. 

Apr 10, 2010 4:57 PM

I'm glad to see these memes I pound on here getting picked up.

Things get even worse, though.  Synthetic debt instruments are a plague.  Supposing a bank sells a CDS, they were then tranching the payment streams from the CDSs they wrote and reselling that, then netting out.

The entire GDP in this manner was for a decade wholly fictitious.  You think they're on the hook for IRS?  Nope.  They AGAIN tranched the payments streams in CDOs and sold those off.  So when/if the swap blows up, it is not the bank on the hook, the CDO junior tranches go to zilch.  It's not just the bank that goes down.

All I wonder is are we actually going to LET accountants and "economists" with their ledgers saying that we ostensibly OWE them, and in this case, they are asserting at the lowest level that we OWE THEM real production and real assets on the account of what they have on a piece of paper, an accounting ledger, because they have "let" us use paper currency!??!?!

That is our monetary system AT ITS CORE.  Banks take a share of REAL production in exchange for being ordained as the SOLE sanctioned issuers of currency!

Currency is a national asset, but it was ceded to private banks. Think the 1840s were bad?  Look at what the BOE got the British Gov't into over the years.  They have 300 years now of exponential compounding on just the USE of money.

Our dollars got pulled and were replaced by FRNs LENT to us.  By a bank that had what?  Look into the history of the BOE...it's pretty clear that this institution was chartered with fictional assets, and whatever capital they had was almost IMMEDIATELY backed out, or obfuscated - the original ENRON.  They pulled BS with stock certificates and accounting games within a decade or so of their founding.

This is the banking model - they "let" us use their notes as currency for a compounding fee called interest.  If YOU use money, and I abstain, they force you to find someone else willing to go into debt, borrow from them, pay you, so you can repay with interest.  This is the entire system.

Supposing the banks put up some gold as original capital, after a few generations of lending, they back that gold out and all that is left in terms of assets are the BOOKS.  The money "owed," collateralized by YOUR property. 

The deflationists are a confused lot:  they simply MUST take a look around and see who has the most cash.  Where are the trillions in reserves?  They're not in my accounts or your accounts.  If there is a wholesale liquidation, and "cash" becomes scarce, who do you really believe will get access to credit (what cash really is) to scoop the real assets up?

The elites will.  That is what Jefferson was talking about. 

Apr 10, 2010 5:04 PM

You want to see even worse?

Take a look at the price chart of ARLP or KMP.  These are MLPs that produce real goods and have real cash flows irrespective of the frothiness of economic "activity."

Look at how they were beaten down during the liquidation of the meat of the 2008 deflation.  Yields up to like 14% despite KMP for example taking a share of natural gas moving through pipelines, which will move even in a national collapse just to keep the heat on.

Someone was selling and someone was buying down there at the trough.  Ask yourself this:  who had the cash then?  Who had access to 0% "loans" which is basically a gift of cash?  Remember credit IS money in our system; the two are fungible.  So, when TSHTF in the banking system, YOU could not access cash/credit, whereas the biggest pigs had this thing called the discount window and they made, what, half a DOZEN alphabet soup programs for them to get access to MONEY.

If the deflation comes back, the trillions in reserves parked at the Fed are going to come out and play.  They will be in the hands of the vultures looking to scoop up productive assets.  At the lowest level, "money" is useless...look at the vast holdings of the Rothschild banking family, all the chateaus...that is real.  You can't live in money or drive money or eat money.  The elites don't care if the number is a billion or a trillion so long as they have the REAL stuff, the wells, the mines, the land, the gold, the helicopters, the art, the chateaus.  And you go out and make sure the wine keeps flowing by tending their vineyards so that they can enjoy all of it.

Apr 10, 2010 5:09 PM

Yet, WE the little people constantly look at the numbers on "money" as wealth.  If an elite goes from a billionaire to a millionaire, what does it matter if he owns everything real?

Elites own productive assets, we own paper "shares" of shell games.  Look at Carlos Slim...he's got cell towers and real wirelines up and down the Americas.  What does it matter to him the denomination of these assets?  What they net him is a share of all the work of all the millions of people who want to use his infrastructure.  Valued in pesos, dollars, seashells, whatever.

The entire job of banks is to obfuscate what money IS...to get people chasing it and loving it, while they focus on cheating the land out from under your feet.  They'll own the assets while we are all zimbabwe trillionaires.

Apr 10, 2011 7:51 PM

I must disagree with Gross...as long as Japan is WANTONLY printing Yen, there is an immense tailwind for all "risk" assets and for PMs and oil.  The global yen carry is, more than anything else, what has driven EMs to where they are and this will likely continue.

If the Fed raises rates, this could paradoxically attract yen funding into our bonds.  Irrespective of this, the US and various major debtors like Illinois cannot fund at substantially higher rates

Apr 10, 2011 8:20 PM

lol...you actually think NeObama is at all engaged in what is going on?

Besides, the left will never tolerate any cuts in the payola for their constituency, nor can they de-fund the wars.

Look at it this way, running 1.5-2T deficits has worked so far, so why not keep trying it?  They'll throw overboard some art funding and shit like that, but the core problems remain unaddressed

Apr 10, 2011 8:39 PM

you people are STILL talking about 150 year old shit??

WTF

Apr 10, 2011 8:41 PM

The US has a million times more blacks.

The face of US crime is black and secondarily hispanic.

Look at the stats, blacks commit roughly 54% of the serious violent crimes annually.  They are the prison population.

Apr 10, 2011 8:42 PM

maybe China will be generous and take 50% of our black population.

Our crime rate would decline literally by 25% and theirs would go vertical.

Apr 10, 2011 8:47 PM

mosely-claven, your posts on that thread were pure shit.

Like almost everything you write; you are TRULY a world-class idiot.

If we want a reduction in violence, we need to address the non-asian, and nonwhite populations' abundance in our society. 

Apr 10, 2011 8:50 PM

sorry, did I say you were an idiot?

You are a FUCKING idiot.

That is probably the DUMBEST thing I have ever heard.

The thing standing between us and madmax is the INHERENT social civilization in certain portions of our population.

You are just so goddamned dumb that I doubt you can even grasp such a concept. 

Apr 10, 2011 8:58 PM

black issues like what?  Murder, mayhem, rape, and robbery?

There's a REASON why civilized people all over the world find the prototype "African American Male" to be threatening- it's because they ARE.

Just this one tiny segment of our population, about 6%, commits over half of our violent crimes, all by themselves.  They rape the shit out of any race of woman...do white men?  Nope.  Interracial rape is a one-sided matter.  The same is true for interracial killing and other violence.  It is not racist to not identify with this, to want to be around it, or to be wary of it.

Apr 10, 2011 9:27 PM

Only idiots put their faith in the paper notes of a bankrupt State.

Deflationists would have us believe that PAPER dollars and infinitely conjurable eDollars will become more worthful over time.  Horseshit.  This has never happened.  Perhaps over a short term, but look at Japan.

Nuke disaster, run on yen-funded assets...wtf did they JUST DO?  They printed in massive quantities-look at the yen POG if you don't believe me

Apr 11, 2011 1:43 PM

supposin the owner had a few kilos of gold and he's been washed out with the safe...the article says that shit is YOURS

Apr 11, 2011 1:50 PM

KMP and ARLP charts look better

Apr 11, 2011 11:41 PM

cite the 65/5 and explain its relevance to real violent crime.

Do you ACTUALLY think that this somehow can be taken to mean that whites and asians are really committing murders but that they are not being arrested or prosecuted for it?

Because if that is what you are trying to say by use of this irrelevant and likely untrue factoid, then you are quite clearly an idiot.

The size of the population does not affect its average IQ.  Racial makeup does.  Fact.

Ignore facts at your own peril, dude.

Those of you who talk shit about "circles" and whatnot; you are usually the people who live in your little whitopias and have one or two token blacks around you if that.  You're not only full of shit but preeminent hypocrites.

The shit you write is rambling nonsense, illogical, fallacious, and stupid.  You refute nothing by saying "get out there and meet people."  WTF does that have to do with the FACT that blacks have lower average IQs?

Apr 11, 2011 11:45 PM

...spoken like a person with a low IQ.

So, aborigines can survive the outback but they can't do simple mathematics.  LOL.

GREAT, awesome, so you go live in a fucking mud hut and eat insects.  That's the life you want.  Why are you even on this internet created by people with high IQs?

Apr 11, 2011 11:52 PM

here's the rub, butthead...nothing happened in my life.  Ever.  Seriously.  I just moved to NYC and was like any rational person, I said holy shit what I was taught was bullshit.

Where the fuck do you think IQ COMES FROM, moron?  Your PARENTS.  Stupid IS as stupid DOES.  Dumb people raise dumb children in shitty environments.  Smart people raise children in good environments.

In fact, you clueless oaf, they did a study a few years ago comparing high IQ kids against low IQ kids and found that IRRESPECTIVE of environment that high IQ kids SELF-STIMULATED and constructed an environment for themselves with higher amounts of mental acuity related tasks.

Also, if you are not too stupid to get this, but there ARE longitudinal studies, TONS OF THEM, whose subjects are identical twins separated at birth where they check the eventual outcome to compute correlative factors around environment, income, etc., and HEREDITY dominates.

this is a fact known by everyone who has ever adopted.  The bottom line is that you are totally ignorant.  Look at how you fucking defend something unsupported by fact!  You are a LEMMING and a SHEEPLE.

Making ad hominem cracks about my dick...your argument is EPIC FAIL.  You lose, checkmate, it's over.

Apr 11, 2011 12:56 PM

People are acting as if the Fed can actually CONTROL the aggregate ROI on the real economy.

It cannot.  The Fed is a LENDER.  It is subject to the same forces of supply and demand for its product - credit - as any other business is for the product it offers.

There is no demand for credit at high rates.  Attempting to charge a higher price than the market will bear means no sales.  That means no lending.

The people expecting to have their money just magically "make money" via compound interest don't seem to get this.  The banks can't lend at 7% to pay you 6% anymore.

Debt continues to compound inexorably.  And it cannot be repaid.  It is a sin to even try.  The usury clan considered using usury against their own clan as a sin; the very institution of the thing is bogus.

Everybody who's ever been in compound debt knows just how the interest and capitalization thereof just eats you up.  You seem to end up paying forever, and if you add up the total payments you see how the usurer has extracted the principal PLUS a pound of flesh right out of your backside.

There is simply no way the debts can be repaid...jacking up taxes so that people literally WORK all day in order to repay some banker who conjured capital?  This is how holocausts and forced exoduses happened in the past.

Outstanding consumer credit is $50T.  It is INARGUABLE that the banks who are the creditors to this NEVER had that amount of capital to lend.  They lent what they did not have.  Therefore they should not be "repaid," much less with interest.

Apr 11, 2011 4:17 PM

what are you going to water it with?

Apr 11, 2011 4:22 PM

incredible...probably will find out that the fatal misstep was to engage diesel immediately upon loss of landline power.  At that point, they were still underwater.

Had they manually overridden and waited like 30m or whatever, the water'd have cleared and the generators would not have inhaled it and died.

Then again, it looks like 5-6 feet of water that high up on a hill wtf.  All the electronics may have been drowned, who knows.

Apr 11, 2011 4:25 PM

looks like a 7 if these numbers are correct.

All along the way, they had chances to save this thing and seem to have failed to take appropriate action at nearly every turn. 

Maybe we'll find out in a year wtf was really going on.  Honestly I do not know how you watch buildings fill up with H2 and not do something, anything to vent that.  Then you watch one building explode and fail to act at all while 2 more do.  As a consequence you have no ability whatsoever to perform any substantial work.

Was the face of TEPCO managers this fucking important?

Apr 11, 2011 4:31 PM

sigh...I'm going to tell you the same thing I've said a half dozen times before, here and elsewhere.

Google if you do not believe, but Japan has roughly 300,000kg of plutonium at its disposal.  Couple that with the high technology of the economy and they are already a defacto nuclear weapons state.  You need really only crush a couple subcritical blocks of Pu239 together manually into critical mass to make an atomic bomb (albeit an inefficient one).

Why the fuck would Japan need to conceal anything?  Detailed implosion bomb designs are already widely available on the internet; the obstacle to nations to acquisition of the Bomb is fissile material.  Japan has that in abundance.  Even if they lacked an implosion device, the nation is littered with enough supercomputing to solve any technical problems.  If they don't already have a Bomb, at any point they could put one together in about a day.

Apr 11, 2011 8:11 AM

well, I think it's been 9 days since the date Mosely-claven predicted as when everybody in Tokyo would either be dead or evacuated.

Fukushima is a clusterfuck but at least things aren't getting worse.  They've clearly bottomed out and the world didn't end.  The tsunami posed more of a "GDP problem," despite the rampant hysteria here.

Apr 11, 2011 8:13 AM

ROTFL...if I had a nickel for every time a nonsmart person said that.

As if because you can imagine it, they should march out and "solve it."  Thanks for doin the hard part for us lol.

Smart minds are going to drub you on EROI and thermodynamics but you'll ignore them because they don't state a happy outcome

Apr 11, 2011 8:17 AM

"stabilize" the markets?  They are stable.

Demand will wane...it needs to because it's got to catch up to waning supply

Apr 11, 2011 8:18 AM

I preach to the shorties about the hidden inflation in food and how the mfrs mess with the container sizes and sure enough, this week, Odwalla reduced their tasty fruit beverage containers from 15oz to 12 while maintaining the same apparent tag price.

20% of the content, poof.  Things like this demonstrate what inflation is like nothing else can.

Apr 11, 2011 8:21 PM

whistleblower?  WTF...I have been saying the same thing for 4 weeks now!

DOE's paper that I repeatedly cited studied this exact accident scenario.

The complete abdication of responsibility for decisionmaking on permanent repositories for nuke waste is what is the "timebomb" and it bit Japan totally in the ass.  This accident would have been FAR easier to deal with had they not had this can kicked by government for 50 years.

Apr 11, 2011 8:26 PM

I'm amazed more shit hasn't caught fire there

Apr 11, 2011 8:30 PM

go ahead and fuckin panic, bitch...run around screaming.

I never said what you claim I said, punk.

Apr 11, 2011 8:40 PM

let's just assume the worst case for every reactor.  Everywhere.

That makes it eleventy billion on that scale.  Happy?

Apr 11, 2011 8:46 PM

bigoted rants?  Like what?  Stating facts is now bigoted?

All hope is lost.

You freethinkers are in a mental box and you fight to stay inside...ruminate on that.

Apr 11, 2011 8:54 PM

they're really just stupid but they have been told how great they are their entire lives.

Read about Antoinette's reaction to being taken to her own execution in a horse cart; she was incredulous that she was not given a carriage.  Our "elites" are really that out of touch.

Apr 11, 2011 9:07 PM

hell they couldn't muster the strength to not board trains to concentration camps

Apr 11, 2011 9:11 PM

you will probably get another chance lol

I am a symphony of junks.

Even chumbadumba was like "oh here, let me show you how to get junked," he got crickets.  Washed up.

So I had to put on a clinic for him.

Apr 11, 2011 9:22 PM

dude, I don't "believe" that certain races and/or ethnic persuasions have lower IQs, they are TESTED AND DO IN FACT HAVE LOWER IQs.

I am not making this fking shit up, dude.  There's simply no emotional basis whatsoever for it; I grew up in a whitopia believing (as taught) that everybody was fungible and I simply found out otherwise just as soon as I was introduced to reality.  I encourage all of you idjits in your whitopias to pull your heads out of your asses.

Wherever you got that stat about crack use...cite it.  I can and have cited my stats.  Blacks very reliably commit slightly over half of the violent crime in the US, year in and year out.  That this is true is so easily proven that it should be accepted ab initio.  Only an ignoramus would contest it.

YOU are the one with the disfigured worldview because the basic ASSUMPTIONS you operate on are flawed!

Imagine if you were in my position, talking to someone like you who doesn't seem to understand reality, who is clearly very ignorant of it, doesn't know the data and really has a ton of wishful thinking on the matter.

Yeah, man, I get it...you really really really want to believe that the equality myth is true.  But it's not.  It's a myth.  And this is why you and people like you are CONFOUNDED as year after year the data and reality keep confirming what I am saying.  It's because your beliefs are bullshit myths.

The mental contortions I see people like you go through daily to AVOID accepting plain reality staring you in the face really amaze me.

WTF would I "know better" if I were more evolved, you cretin?  That blacks really DO have IQs equal to asians?  You're a freakin moron if you believe that.  You believe in a freaking fairy tale.

You freethinkers need to seriously pull your heads out of your asses and start CONFRONTING uncomfortable truths.  But you are incapable, emotionally, just like all the "sheeple" and "lemmings" you decry on a DAILY BASIS around here who you say won't take the red pill and who want to stay sheep.  That's YOU.

Because if you actually take a cold hard look at the facts, you are going to very rapidly - if you have a logical bone in your body - conclude that what you thought was real was in fact bullshit.  It flies in the face of all you've had drilled into your head since day one.  What looks like injustice wasn't, equality is phony, everyone is not the same.

Believing otherwise leads your mind into all kinds of shitty places, like the moral equivalence box, self-destruction, and a whole host of other dissonant states.

Notice how you argue ad hominem.  Rather than refute my facts you make up absurd accusations like my wife cheated with a hispanic or I got wedgied by black kids.  Your argument on that basis alone is FAIL.

Apr 11, 2011 9:25 PM

I must correct you:  aborigines in Australia have the lowest IQs.

The archetypical spearchuckers...whoda thunk it?

Apr 11, 2011 9:34 PM

sure it could be...but I am not inclined to assume it is in the absence of evidence.  Would I have evacuated already?  Hell yes, once my own geiger counter started going off

Apr 12, 2010 11:04 AM

Gosh and I thought that interest rates were the sine qua non of economies.

Why aren't those damned Japs borrowing at 0% to earn a -2% profit?  WTF is the matter w/ them?!??!

Apr 12, 2010 11:14 AM

LOL...defaulting does wonders for the sanctity of the sovereign's currency

Apr 12, 2010 11:16 AM

What people fail to understand is that the government, via printing, can set the nominal price of the bond.

However, they cannot dictate what the bond will buy in terms of real goods.

So, sure, we can avoid a bond crash and interest rate blowout on USTs but we can't stop what those "values" fetch in terms of oil or gold or any other commodity.

So your $100 bond buys a sheet of toilet paper.  But its dollar price never crashed.

Apr 12, 2010 11:20 AM

Exactly.

The deflationists do not understand the axiom of business:  you cannot sell at a loss.

They expect the "liquidation" to continue forever and that if Toyota can't sell cars at $20k, they'll just have to drop them to 10k or 5k.  Just to "sell cars."  Yeah, sure, even at a 5k/unit loss, they'll HAVE to sell them to support their production numbers.

Wrong.  At some point, they'll raise prices to something that makes a profit and make do selling less.  This is how it works all over the world.  In Brazil, for example, cars are way outside the price range of average salaries, consequently, there are less of them bought.  Surely, all the makers would love to sell more cars at that price, but they cannot, so they do not.  Selling more cars at a loss is intractable.  If they cost X to make, the sales price has to be >X, period.  Or else the business isn't viable.

Once the liquidation phase of deflation is over, prices reset to a new normal based upon profitability.

Apr 12, 2010 11:31 AM

Been saying the same thing for years.

The decline in oil supply makes a peg of the dollar to oil impossible.  We have a need for more purchases of petrodollars but there is less oil to produce.

But so long as the dollar buys oil, it has some real value.  However, if the creation of too many of them ends up in the oil market attempting to buy real barrels, you will see that change.

Suppliers will adjust the peg irrespective of whether the "price" is too onerous.  There's no way around this.  Oil is going to go wherever it's bid; it does not care if people find that price unpalatable.

In a world of growing scarcity, debt-based promises levied against a future of growth simply must be discounted.  And, there is no separation between the Treasury and cash.  The Fed need only "buy" the foreign holdings and give them cash.

If the goal is to maintain a dollar/oil peg, the price WILL have to rise to soak up this additional UST supply.  There's no way to balance the ledger otherwise.

Production of dollars is outstripping production of oil and will continue to do so. 

Apr 12, 2010 11:49 AM

Can't people see what is happening???

These are SCARCITY metrics.  They prove what I've been saying; we are entering an aggregate contractionary phase.  The Era of Growth is over.

This type of "mixed message" where people cannot figure out whether it's inflation or deflation *should* occur.  We are not in the Era of Growth anymore.

Prices go up to reflect the abundance of paper currency representing debts that the future cannot pay. 

This is what is happening:  all around us, despite the credit deflation of default, the value of the debts themselves continue to wane.  When default is rampant, who should expect other debts to become more worthful?

As our currency is itself a debt instrument, its value too is being discounted.  All while people get laid off and businesses close.  All these things do is prove the diminished worthfulness of our debt!

The deflationists had it wrong...credit contraction will not lead to lower aggregate prices because the prices are denominated in OTHER DEBT which ITSELF too, is being discounted!

The confusion comes from various people's inability to admit or recognize that we crossed a significant epoch at world C&C Peak in 2005 that mandates the reevaluation of every single piece of economic "theory" that only made sense during the Era of Growth.  The fundamental axioms of the system have changed; it is as if we are trying to navigate using a compass when the Poles have swapped.

Only a fool would assign the dollar more worthfulness in the face of what we're seeing.

Apr 12, 2010 11:55 AM

Exactly.

Look, folks...when your compass says you are going west and you are flying INTO the rising sun, you either believe the instruments or your lying eyes.

The metrics are giving us readings that make NO SENSE in the system that we are ASSUMING that we are operating in.

EVERY piece of economic theory only MADE SENSE during the Era of Growth.  We have left that era.

If your compass is reading W while you fly past NYC en route to the Atlantic, there is only one possibility.  Eliminate the impossible; what remains must be the truth.  The fundamental axioms are no longer valid.

Apr 12, 2010 2:54 PM

Deflationists don't understand that as credit continues to default, the remaining debt must be discounted in the face of the obvious.  The FRN is debt.

Apr 12, 2010 4:08 PM

Sorry...there's no brighter future.  Inadequate energy supply for the extra lights.

Apr 12, 2010 4:10 PM

Just remember:  the FRN is an asset class.

There is no such thing as "cash."  There is only debt.  The FRN is debt.  An electronic FRN has no special attributes not shared by a paper version of same.

Apr 12, 2010 4:17 PM

Why are you complaining?

"Organic growth"?  There is none to be had.  That is why yields are so low.  It's why debts requiring interest are being discounted before our very eyes, including creditmoney.

Everybody seems to think that gee if we just do this or that INSTEAD of what's being done and which obviously isn't working, that the "growth" will come back and we can resume grow, grow, growing forever!

We can't.  That's the problem.  It's why everybody is confounded by this.  Economics DID NOT CONSIDER the system state where growth could not continue, where headroom evaporated.

At least circuit designers understand clipping and dynamic range and headroom.  File this epic fail into another matter that economists do not get in their pseudoscience.

Apr 12, 2010 4:26 PM

Debts are being discounted in the face of a future of contraction.  The FRN is debt.

Apr 12, 2010 8:35 AM

IMF charges a sovereign state a "fee"??  WTFLOLz

Junk fees just like a mortgage.  Where's the doc fee, attorney fee, stamp fee, binder fee, courier fee, and all the rest?

Apr 12, 2010 9:26 PM

Cash?  WTF is that?  Oh you mean an electronic entry in some account somewhere?

Who is the Treasury's bank, again?  Ah, the Fed.  The ATM that never runs dry.

Apr 12, 2011 1:23 PM

Those of us even vaguely in the know - and there were a lot - saw through TALF as soon as it was announced.

Essentially, the Fed used these devices to sop up debt all over the spectrum.  If you had some of your own cash, you could put it up (sorta) and then you bought access to the Window.  Not for the little people, only the big fish.

Then you take out enough loans to buy your shit ALONG WITH paying yourself management fees and continue to roll loans until you've extracted your initial profit + 20% or whatever your expected ROI was.  Then, fuckit, stop paying, let the Fed have the shit.

The Fed DIRECTLY subsidized ALL the big fish along the way.  Little fish got the firings, cuts, pay freezes, etc.  I was working at Comcast during the time this fucking CEO got his nearly record (for US F500s) pay increase.  They were actively attriting staff all up and down, letting significant knowledge walk out the door.  And the CEO got the payraise.  Everyone below executive level got fucked while these motherfuckers bought themselves a $25M giant TV screen at HQ to serve as a digital wall (no shit) replete with digital ants crawling across it.

Apr 12, 2011 1:24 PM

for every fraud uncovered they have 100 more

Apr 12, 2011 1:26 PM

I'm still kinda stunned that not one person laid off, foreclosed, evicted from one of these companies hasn't taken an assault rifle to HQ and capped the executives whose pay went up by 12%

Apr 12, 2011 10:37 AM

this is just complete bullshit.  Fission in reactors requires moderation.  This crap about nuking reactors is nonsensical idiocy and anyone who says it should be ignored immediately.

Apr 12, 2011 10:45 AM

Dr. Tom Burnett is utterly full of shit.

Fission did not stop at Chernobyl upon the initial core excursion precisely because portions of fissile material remained along with graphite moderation.  This is how the Bridge of Death came to be such a thing.  Chernobyl was fissioning during the accident until the army airlifted in enough boron, sand, and lead to absorb sufficient neutrons and to mobilize the core elements downward and out of the reactor.

There is no analog at Fukushima.  It is WATER moderated.  While the core will melt, without water inside the reactor, there can be no fission due to scientific concepts such as doppler broadening that Dr. Tom appears to be clueless about.  A BWR meltdown is NOT self-sustaining for this reason. 

Those who say that the Japs should have done what the USSR did are similarly clueless; there is nothing here to pour boron on (other than SFPs) as the reactor vessels roughly contain the reactants.  Chernobyl's reactor interior was open to the atmosphere, consequently things could be dumped into it.  That is not the case at Fukushima Dai 1.  Basic knowledge of the reactor designs should be a prerequisite for comment on this issue

Apr 12, 2011 10:45 AM

you guys learnt everything you know about nuclear reactor accidents from "China Syndrome," didn't you?

Apr 12, 2011 11:19 AM

How many fucking times do I have to explain this to you idiots before you get it?

Japan HAS FISSILE MATERIALS, which are the sole obstacle any nation has to Bomb acquisition.  The technical issues relevant to creating a critical mass for an atomic bomb are trivial for a nation with the technological capability of Japan.

As they have an orbital space program too, they have delivery capability, intercontinental, as well.

Japan is a de facto nuclear weapons state.

Apr 12, 2011 11:26 AM

well, economically...the Chernobyl thing is in a direct line to the downfall of the USSR.  It certainly did expose the incompetence of the central authority.  The USSR was bumping up against their oil peak a few years later and shelving reactor capacity was not something that they could stomach.

Apr 12, 2011 11:53 AM

OMG a ONE percent selloff!!!!  RUN FOR THE HILLS.

Silver is down to FORTY dollars, gold at 1450, WTI 106...Apocalypse Unfolding.  Yen is up .84% against dollar...OMFG.

What has been a one-way trade is taking a retrace; chill the fuck out

Apr 12, 2011 11:56 AM

yeah, people throughout history have hoarded paper in times of distress...LOL.

WTF do you think they're going to do with that paper; it has but ONE use.  Ok, maybe a few more but those involve ass wiping or wallpapering

Apr 12, 2011 12:53 PM

guillotines, bitchez

Apr 12, 2011 3:02 PM

to those who think the elites are super smart...read the article...REIKI? WTF. Some kinda mystical asianmade con.
These elites are so clueless and out of touch they will latch onto any kind of bullshit. I mean look at Scientology!

The so-called elite is completely out of it. Remember, they get access to all kinds of free pills

Apr 12, 2011 3:07 PM

could have paid 500 employees 50k for the year for that.

Or maybe one year's bonus of the CEO.

The elite class is systematically looting EVERYTHING they touch.

Apr 12, 2011 3:59 PM

nobody seriously expected the GOP to actually cut did they?

Apr 12, 2011 8:17 AM

there's nothing wrong with that pool design; it wasn't designed to be a PERMANENT STORAGE repository for spent fuel rods.

It's like using cinder blocks for a jackstand

Apr 12, 2011 8:24 AM

yeah...watch that Cobalt Coal show on Spike or whatever. Talk about inbred hillbillies. They run over the power cord for the coal cutting machine it seems like almost daily and emerge from the mine with soot-covered faces. Not a great life but they sho is dumb.

Gaia worshippers should worship in the dark. No electricity.

Apr 13, 2010 1:34 PM

Yep...100% true, because the Junta never has any rifles.

Oh wait, they do.

You ever been in a gunfight with, say, 10 people armed as well as you are?  Yeah, you're posting, I know the answer.

Apr 13, 2010 1:38 PM

This is the single most important question:

If/when the real economy can no longer grow, what happens to a system of money based upon debt?

Apr 13, 2010 1:40 PM

Why are we all asking questions we already know the answers to?

The centralization of money isn't about efficiency, it's about profits for the people who control it.

Apr 13, 2010 1:48 PM

JUST RAISE THE FUCKING TICKET PRICES.

JFC, will SOMEONE please stop trying to freakin obfuscate??

Either that or surcharge by total weight.

Apr 13, 2010 10:16 AM

This is PRECISELY how I have described socialism to socialists for years trying to get them to understand.

You trade any chance at upward mobility for a reasonably passable lower middle class lifestyle.

And it does nothing but ENTRENCH the aristocracy.

There is NO WAY to get ahead with the taxation of income.  The rich don't have to HAVE income; they have ASSETS and WEALTH.  Those who have are enshrined in perpetuity; those who have not, the same.

Apr 13, 2010 10:18 AM

The commentary here is mfing laughable.

The vast majority of these rich are NOT productive.  They just feed off of the gov't trough.  To call them "productive" and wealth-generating is asinine.  They are just better-connected leechfucks than those on the left of the curve.

There are a very few productive who "deserve" their income, but a hedge fund manager?  What "wealth" are these wall street fucks creating?  They're merely taking wealth from other people and putting it into their own pockets and then calling it industriousness.

The right side of the curve is stilted with crooked and incompetent executives and wall steet hucksters.  If you go down a list of billionaires in the world you see a list loaded with corruption and former heads of State and in some cases, like Bhutto, Arafat, Hariri, etc., children of "public servants" who are now legacy billionaires due to the death of their corrupt parent.

The rich are increasingly parasitic, not productive.  As for the solution, it is NOT government, which is and always has been an ENABLER of these parasites.  The solution is populist labor bargaining power.  THAT is what created the middle class.  Gov't policies were not responsible for sane executive pay multiples; in fact it has been government policies enacted by/for the elites that have caused the opposite.

At this point, the elites have a complete stranglehold on ALL levers of power - gov't, unions, interlocking executive directorates.  They and their cronies are on every board and in every decisionmaking position.  I fear that revolution is the only option at this point.

If the government taxes more, that just makes more money available for the right lobbyist to help the right Senator steer into the right hands.  The richest people I know are sucking on the gov't tit, war profiteers (also on interlocking directorates of various large corporations), lobbyists, and otherwise connected with the gov't.  Look at the banking industry; it would not EXIST but/for gov't largess.  And NOW they are going to jack the taxes up and we're supposed to believe, what...reverse this largess?  Give me a break.  It's never gone that way.

In each and every case, the gov't program to do anything becomes an excuse for money to pass from a crony to a lobbyist to a Congressman who appropriates the public monies back to the crony.

Apr 13, 2010 10:24 AM

This is the bifurcation of the economy.

Those connected to the gov't bailout tit are doing well and highly optimistic, and their executives got bonuses and raises for surviving.

Those not connected?  Hey, yeah, fuck you.  They're suffering. 

Those dependent upon actually producing things, not so good.  Those dependent upon gov't money and connected to the financial complex or subsidies?  Much better.

Apr 13, 2010 10:27 AM

Global peak oil is unprecedented.

After USA Peak in 1970, we came across the N Slope and the N Sea and several other supergiant fields.  The sudden relative new "abundance" of energy plus the severing of the Bretton Woods connection to real assets provided some cover for the debt era.

Basically, we consumed the resources in an area and moved on.  Now, we've run out of area. 

Apr 13, 2010 12:11 PM

Read about Real Bills Doctrine.  This is the answer.

The reason bankers hate it is because it does not allow them to acquire real assets for lending what they do not have.  It turns them into transaction facilitators and bye bye to massive spec and rentier profits

Apr 13, 2010 12:37 PM

What do you plan to do with that ammo?

Defend yourself from a drug gang wishing to use your nice property as a meth lab?  ROTFL.

Everybody has guns and everybody has ammo.  Don't you ever do paintball in a confined arena?  Those who are not shooting are the ones who make it to the end.

Apr 13, 2010 12:42 PM

IMF = lend them money to lend it back to you.

DOUBLE PLUS GOOD HAPPYFUNJOY

Apr 13, 2010 3:07 PM

how is this different from any of a zillion .com stocks in 1999?

Apr 13, 2010 6:13 PM

going to need significant loss of faith in FRNs to displace them.  The Euro collapsing would do more for gold than the dollar

Apr 13, 2011 1:44 PM

can't watch anymore of President Ruxpin

Apr 13, 2011 11:58 AM

well it's true, ain't it?

The debtmoney system was at inevitable path to destruction upon inception.

ANY time you create a money base that requires more money on an ongoing basis to avoid complete (and I mean total) deflation, you have a growth ponzi animal.

When the Fed was chartered it lent X dollars into the system requiring X+iX dollars in the future to repay (i is interest).  The iX dollars did not exist at the time of X's creation.  The sole method of iX's coming into existence is further borrowing by some party in a rolling, geometrically growing credit animal.  If at any point there is nobody left or willing to borrow that additional iX, the system begins to implode.  There is never at any point sufficient money to repay the existing money plus interest owed on it.

Apr 13, 2011 12:01 PM

need to look at price levels in Argentina to have any idea as to what this Merval number means in a real sense.

The truth is that if we are in such a crackup, your mandate is to lever to the fucking moon.  Those who lever in severe inflation end up at least paper rich.  Certainly those who do not will see their paper wealth migrate into the hands of those who do.  So in a relative sense, the levered become wealthier.

Apr 13, 2011 12:01 PM

our national heydays were during trickle up periods.  However, government does not accomplish that.  National Socialism just creates unassailable plutocracies.

Apr 13, 2011 12:10 PM

in fact this is PRECISELY what Central Banking is supposed to be and do!

Its inception was the Bank of England whose charter members intended to PROFIT from lending to the sovereign and controlling issue of currency.  The original purpose of the BOE was to lend to the English to (surprise surprise) build war power.  The MIC is 400+ years old.

Apr 13, 2011 12:20 PM

ROTFL,  bitchez

Apr 13, 2011 12:24 PM

either way, this appears to be the banks finally being flush now.  They've been saved and bailed out.  All their NPL crap is on the Fed.

Now the banks want repaid on all those bullshit ponzi loans.  AUSTERITY TIME.

GET BACK ON THOSE WHEELS, HAMSTERS!!!!!!!!!!

Apr 13, 2011 3:47 PM

GOP probably took some polls and found blame for their shutting things down.  Bama still owns media friends.  The whole "oh no the soldiers won't get paid" was just too much.

Apr 13, 2011 3:50 PM

kmp pays a 6.1% right now.  But nearly 6 for a copper stock ain't shabby at all

Apr 13, 2011 4:08 PM

this is as I deduced just from the spotty information that we received out of Japan.  The SFPs always were the problem.  Mechanical dislocation of rods along with water has placed them into sporadic criticality, explaining inaccessability, neutron beams, all of that.

The *pools* are why nobody can access the reactor buildings and why we continue to have radiation release.

A SFP anywhere should be looked at as an uncontained potential reactor core (or several).  Some physical damage plus unborated water and you're going to get fission.  Don't pour in water and you get an uncontained meltdown, zircaloy fire, etc.  Lord knows what is underneath these SFPs all over the world...maybe aristichan can weigh in.  It very clearly does not look like they have the same physical safety apparatus as an actual reactor.

This is a sick irony that they put all this effort into designing relatively safe actual reactors, with multiple redundant safety systems, yet they take the very same shit, put 97% equivalent rods in a big matrix in a fucking swimming pool and pretend like we can then just put it on ignore.

A SFP meltdown is a massive catastrophe waiting to happen.  It is not nuclear power that is dangerous, nor reactors, but everything outside of them.  The only part of the fuel cycle that appears to use containment and safety is the actual fission part, when in any kind of LWR, the rods are JUST as dangerous after they come out of the reactor as during the fission process.

Apr 13, 2011 4:10 PM

Let France deal with this...it's their baby.

They have their carrier there, get more mfin planes on it and do this shit.

Apr 13, 2011 4:22 PM

you don't want to shake hands with 3rd worlders who don't use toilet paper.

The proper etiquette to a jap is to make sure he bows deeper than you because we as americans outrank them.

The ahabs you kiss on the cheek same as french.  Because they wipe with their fuckin hands.

Apr 13, 2011 4:28 PM

who is this "us"?  because i wanna know who you people are, bc you are about as dumb as shit.

I sure as hell wasn't at any heights of fuckin hope or believing in all this hopium bullshit, motherfuckers crying and weeping over this chump, passing out as if jesus had come and he was like god floating over all of us.  Fuck that shit.  He's a man, and an unexceptional one at that.

I laugh at people in the personality cult because they are chumps.  And you all got conned, fuckin marks

Apr 13, 2011 4:32 PM

a once a week yoga duffer could whip his ass.  I mean fuckin look at him.  He's pathetic.

I mean he very clearly THINKS he's awsumz at basketball because the fucking teams he invites by like NC and whatnot let him put some buckets in for a photoop.  And he probably thinks he's killer at golf because everyone kisses his ass.  That's all anyone has ever done his entire life is asskiss because he's the negro that absolves the whitey guilt imposed on them by a legion of "civil rights" orgs and media interestingly dominated almost exclusively by ONE ethnic group.

He slacked his way through the ivy league undergrad, Harvard, everywhere, he was a present voter in the state senate, national senate, and the powers behind him have bulldozed any real opposition he ever had while rolling a red carpet out in front of his sorry ass.  He's nothing, literally nothing...has the air of a dude who catches about him too

Apr 13, 2011 8:12 AM

I wonder how much of that bottom line was from blowtorching goldbugz lol

But seriously, Tyler what is the problem with reducing loan loss reserves?  To actually expect to take losses with this Fed operating is foolish.  Loan loss reserves should be cut completely to zero.  You can always flip the CLOs to shell companies stood up by the wives of your wall street cronies.

Apr 13, 2011 8:18 AM

if you were a CB, what's holding your notes up?  The dollar?  lol.  If shit gets serious, you have to really consider having something, anything, with which to back yourself.

The notion of selling into the markets is on pause indefinitely.

Apr 13, 2011 9:27 AM

of course it's over...all losses will be passed off to the Fed via loans to the shell companies stood up by wives of wall street cronies

Apr 13, 2011 9:44 AM

this is the spectre of deflation.  These debts REQUIRE somebody else to borrow ever more...classic ponzi behavior.

These maturities plus interest all have to be borrowed; the consumer isn't holding up his end.  The gov is going to force you to effectively lever by borrowing for you and making you make the payments.

This will run until the economy just totally collapses.  EVERY ponzi scheme eventually collapses and this one is no different.  There is NO WAY for the "system" to live within its means when the debtmoney system is in systemic default at its inception.  Everything that follows is a result of ignorance of this one, basic fact.

Apr 14, 2010 1:42 PM

Don't forget the Great Famine...that's the BOE's idea of Irish Austerity.

Ireland has been rentier heaven since the 1600s

Apr 14, 2010 1:45 PM

YOU CAN'T HANDLE THE TRUTH.

Apr 14, 2010 11:06 AM

The guy you are responding to is correct.

The problem is the expectation that growth would continue...the debts we have, some of them 30 years in duration or more, expect growth.

Growth at this point isn't happening and won't happen absent a HUGE quantum leap in technology.

Apr 14, 2010 11:30 AM

All nations are in "debt" to banks beyond their ability to pay.

There are those on here who say "well, if one guy is in debt, another must be in surplus."

Wrong.

The fact that EVERYONE is in debt and nobody can figure out to whom proves that banks lend capital they do not have.

The banking system is kiting checks against the future, lending out what they do not possess, hoping to get real assets in exchange.

How else can EVERYONE be simultaneously insolvent?  Even China now says they're in trade deficit.  So, who is exporting?  Who is lending?

The banks.

Apr 14, 2010 11:51 AM

Impossible.

The top 1% do not have $100T in wealth or whatever the aggregate debts are for all nations.

That's my point; the money that was lent never existed.  There never was the capital.  It was leverage.

The top 1% *borrowed* the money to lend, exploiting rate arbitrage.  Trace the funds back to their source, the banks.  Only they have the power to create creditmoney like this.

This is, in fact, the problem...the bottom 99% is insolvent, therefore the top 1%, who are still ostensibly on the hook for their debts, are too.

Look at the banks...they were simultaneously OWED massive amounts yet still insolvent somehow.  If they were actually lending money/capital that they possessed, there is no way they could have been insolvent.  The point is that they borrowed and levered in order to lend and THIS is what blew them up, the imbalance between debts "owed" and the value of "assets" which were themselves chopped up slices of loans to others.

Banks didn't just lend out their deposits then get run on.  They themselves borrowed massively from others to create leverage pyramids.  All of these roads trace back to the Fed as the bank of banks.

Apr 14, 2010 11:58 AM

Math is a sorry reason to have armageddon.

I keep trying to get people to understand that these are just numbers on paper.  The money lent was never possessed; it was created.  That is how we got price inflation out of it.

It's how the MZM and other money metrics kept increasing; they kept creating money via credit. 

Yet we see banks ostensibly creditors who are themselves insolvent.  Everyone lent to everyone else money that they didn't possess and now they expect repayment.

And people are ready to go to war and have society actually collapse because of some shit on an accounting ledger?

We need to stand up and collectively REPUDIATE this system.  We can be like Bavarian Producers in the Weimar era and say take your jew confetti back to where you came from.

Real Bills Doctrine provides us a production-backed means of exchange, a real currency, and makes banks what banks are supposed to be.

The banks should not tell us that we have to give them our firstborn because they lent us money that the banker never had in the first place.  Fuck that.  There's no loss to him except in his expectation of RENT.

If I pulled the shit the banks do, I would get arrested and jailed for counterfeiting and fraud.

Nevermind the Fed or the other CBs.  Look into the history of the BOE...they backed out whatever initial capital they put up in that bank within an instant.  Why?  Because they had "assets" in the form of sovereign loans, created by lending capital THEY NEVER HAD.  So, they backed out their REAL capital and left the loans on the books as assets.

The banks are assetless; that is the big elephant in the room.  The debt is backstopped by bullshit and smoke and mirrors.  It must be rejected, along with the entire CB debtmoney FRN system.  All of it.

This is actually what the Founders did and were about.

Apr 14, 2010 12:03 PM

You got it...the elites are also on the hook.

If the debt defaults, they don't get their real assets.

Apr 14, 2010 12:42 PM

Devaluation must occur...Japan is the heaviest in debt, so watch them for signs on what will come this way too.

Apr 14, 2010 9:12 PM

Mohammed was a pedophile

Apr 14, 2011 11:17 AM

and of course EVERY farmer wants nothing more than his farm animals to drop dead

Apr 14, 2011 12:26 AM

SECers have to see GS or other WS firms as their next career step.  Are they really going to shitcan their career ladder?

Apr 14, 2011 12:44 AM

So trav7777 will say this is not "bad" news.

You idiot ass...I was the one, more than a week ago, who said that neutron beams and radionuclide emissions were likely from SFPs.  I said that.  Nobody else did.  Me.

If you construe that as my having said it was not bad news, then you are a fucking idiot.

I have maintained since day THREE that the danger here was not reactor cores; in fact I said LET THEM MELT DOWN, they cannot be saved.  Spend all efforts on mitigation of SFP rods because there is NO CONTAINMENT for them.

I would not be surprised if sporadic criticality was occurring in these ponds as a result of mechanical displacement of fuel elements plus inclusion of unborated water.

There is argument upthread about silly shit such as "proof."  No, this is not proof in the OP, it is EVIDENCE.  It is what I said 2 weeks ago, there is EVIDENCE of ongoing criticality here and there, xenon isotopes downpipe, Cl36.  If they find Cl36 in the water, there you go.

The heavier than expected isotope concentration is evidence of there having been sporadic criticality at some point.  News flash- these events are the accidents which KILL plant workers.  Not exposures, not leaks, but criticality accidents due to moving some shit too close to other shit.

The premise is that SFPs have undergone some criticality during the aftermath.  It is not dispositive; there is no proof.  It is only a theory that tends to fit the facts.

Apr 14, 2011 12:52 AM

I cannot concur.  Far higher than normal levels of these isotopes are evidence.  They are not proof, nor are they conclusive.  They are merely evidence.

If there are stray neutron emissions, I would not wager these came from reactors that are in containers intended to provide neutron shielding (otherwise the things would kill everybody nearby).

I think "ongoing fission" is a gross misnomer.  There is at most sporadic fission in the nature of the types of criticality accidents which have periodically killed nuke plant workers over the years.  If the rods have been moved too close to one another and unborated water is introduced to the pile, fission is certainly not unexpected.  It happens sometimes even in the NORMAL mode of operation of these pools.

If you intend to say that these isotopes provide no evidence of "ongoing" or "current" fission, then I agree. 

Apr 14, 2011 3:14 PM

Plosser's not talking shit...he actually thinks there's a "recovery" going on because all of the metrics that are fed to him by his sycophants suggest that there is one and that inflation is tame!

He doesn't have to pay attention to his grocery bill when the live-in nanny comes home with them.  It costs whatever it costs, not a big deal for a fatcat like him.  Likewise, his car is certainly paid for and his driver pumps the gas or the car company takes care of that.  He never has to tank up for work, only the occasional fillup and he may have someone handle that too.  Not a problem for him.

Apr 15, 2010 1:50 PM

Actually, 'Bama closed more than he opened.  Net down.

I used to live in a neighborhood with these people.  They DEMAND electricity but demand NO POWER PLANTS.

Socialist liberalism is inherently self-destructive and paradoxical.

Apr 15, 2010 10:01 AM

I see a few of you guys understand Peak.

In the future, please do not talk about reserves or URR, as it confuses the rubes.  Don't talk about "cheap oil" or other irrelevancies, because the rubes have trouble understanding 2nd order problems.

The issue is not about how much oil is in the ground, it's about the rate at which we can produce it.

Given your statement about the world consuming 1Bbbl in 11.7 days, some rube might say, "oh Brazil just found 8-10Bbbl in Tupi so that's 117 days' worth of new supply and we just keep finding billions and billions more."

The problem is that Tupi cannot and will not produce 1bbpd.  In fact, it will top out around 500kbpd. 

I have tried mostly in vain to get people to accept that you cannot divide the P10 or P90 or URR or "inplace" reserves figures by desired demand to get production rate.  Wells just don't work that way.

Even if Tupi does contain 10 Bbbl...we cannot mobilize them to the surface at any old arbitrary rate.  We can only bring them up at max, 500,000 per day, and this is the peak rate, which is only sustainable for a few years in the production lifecycle.  Just because the world needs 1Bbbl every 11.7 days does not mean we can decide to suck oil out of a well at this rate.

Rubes continue to think we found another years' worth of supply each and every time some headline says we found possibly 30Bbbl somewhere 20 miles down.  When in reality, a field such as that may at MOST supply 1/80th of the current consumption.  Rather than say it gives us "another year," what it does is give us 18 minutes *per day* worth of oil.

Apr 15, 2010 10:11 AM

A month or two?

ROTFL.

Again, we CANNOT suck out the oil from this field at whatever rate we want to.  We consume 18mbpd in this country.  Assume that the find is 1Bbbl.  Does ANYONE here actually believe that we could produce 1Bbbl from this field over the span of 60 days?  That would be 16 Mbpd.  Or 3x the maximum production rate of the world's largest oilfield, Ghawar.

To even phrase this find in terms of a month or two of US demand is asinine and it understates the problem, which we *desperately* need rubes to grasp and get their heads around.
As long as they continue to believe that we just kicked the can down the road another month or two they will believe with strenuous wishin that we can find another billion barrels here another Bbbl there and we'll extend this into the foreseeable future.

The REALITY is that such a find in deepwater will probably produce *maybe* 200kbpd.  (bpd=barrels per day, k=kilo).

200kbpd is not 2 months' worth of needs, it's less than 20 minutes per day worth at current consumption.  The US consumes 750Kbbl per hour.  To bring another HOUR per day of production online to replace that lost elsewhere, we have to find a field or collection thereof that will produce THAT amount of oil.

When you look at the fields all over the earth, you see that a field of this size hasn't been found in over a decade.  A 750kbpd producing field is actually a relatively RARE thing.  And that's just ONE HOUR per day of our needs.

To illustrate the problem, Cantarell used to produce over 2mbpd, now it produces .5.  That means 1.5Mbpd of production was lost just in the past few years from this one field ALONE.  2 hours per day of US consumption, gone.  And we found a field in the deep Gulf that will give us back 20 minutes of that.

ALL that matters is rate of production.

Apr 15, 2010 10:22 PM

Yeah, bitch, YOU learn YOUR fucking history.

The fuckin joos moved into the land and BOUGHT IT.

That's a goddamned FACT.

The war was one of independence and they WON.

So get the fuck over it you whiny brat.

Another crusade?  GTFO of here with your moral relativist shit...so what the fuck were the Moor invasions?  WTF did Charles Martel do? 

Your sorry ass do-over revisionist history is so much postmodern TRIPE.  The fuckin Arabs?  Those who carried science were hated by the orthodoxy.  Everything you think you know is a joke.  Greece and Rome ring any bells, bum?

Your facts are not facts, they're a fucking joke fed to you by a bunch of socialist revisionist morons.

If you read a SINGLE THING I write on here, you will see that I am the one who POINTS OUT the monoethnicity of Hollywood studio executives AND banksters...but then because I don't buy into your anti-Israeli shit, I have a Zionist U degree.  FOAD, seriously.

The joos won the wars.  PERIOD.  And that's the mfin END OF IT.  Just like we beat the freaking Aztecs. 

Apr 15, 2010 10:23 PM

I don't claim any such thing either.

I CONDEMN what the USA has become, but you lump me in because I am WHITE.

All this "White man" shit is RACISM.

Apr 15, 2010 10:24 AM

It doesn't matter what oil is priced at.

This is why economists struggle to grasp peak oil.

I had to try to phrase PO in a variety of ways to get my economist friend to get it.  He *assumed* that a higher price would cause more supply; that is an economics axiom.

I said that you cannot get more NET oil out of a well past-peak no matter what the price is.  No matter how cheap the credit, no matter how much dollars you print or gold you trade, it *cannot* be done.

The reason why is in order to get more nominal barrels out, you have to spend more energy to do it.  Your NET goes down at the well's peak.  You invest more input energy to maintain output.  Trading one form of energy for another.  The NET reaches a peak then declines.  Irrespective of human constructs like "price."

This sort of stuff, physical laws and physics and engineering, is apocryphal to economists.  It spits in the face of their dogma, which is that the whims of man bend reality, when every engineer knows that it doesn't matter how much the marketing department wants it, you *cannot* build the infeasible, perpetual motion, antigravity, etc., things which violate the laws of thermodynamics or other physical laws.  People can want and wish as strenuously as they desire, but it won't make the impossible possible.  Even if you have 1000 Jiminy Crickets wishing with you.

Economists, deep down, believe that if you offered cheap enough credit or money, that someone could and would invent a perpetual motion machine.  Or a way to make water yield more energy flowing downhill than it took to pump it uphill.  In fact, a lot of gov't programs are subsidies intended to make it look precisely like this is what is happening and "demonstrate" the viability of things which are fundamentally infeasible.

Economics *should* have been the study of usage of energy, but it became about money and interest and credit because the "study" was taken over by largely ignorant but heavily arrogant bankers.  And when the "great" economics treatises were hashed out, there was no reason to expect that oil production would ever peak; it had always grown.  Only one madman, Hubbert, was out there in the 50s, during the monetarist heyday, sounding an alarm.

Apr 15, 2010 10:35 AM

Peak oil has ABSOLUTELY NOTHING TO DO WITH PRICE.

Suppose oil demand DECLINED because people decided to stop consuming as much you know to save the whales or polar bears or something.

Peak would STILL BE THERE even if oil were $20/bbl.

Peak is NOTHING other than a maximum rate at which oil can be extracted from a well, field, nation, earth, or other arbitrary reserve.

Peak is not the end of cheap oil, it is the end of increasing production.

Apr 15, 2010 10:38 AM

Yes...google "Cantarell" for the apocalypse case.

Apr 15, 2010 11:14 AM

No, I'm not one of those guys at all.

I'm telling you that price does not matter.

If people decided tomorrow that we did not want to consume oil ever again, because we had magic cricket power or pixiedust and we wanted to pump it all above-ground to shoot into the sun, Peak Oil would STILL EXIST.

The rate at which we could extract oil would peak and then decline IRRESPECTIVE of the "price" we assign to it.

Are we clear now?

Peak "cheap" oil in terms of EROI was over 50 years ago.  Or maybe in the 1960s when discoveries peaked. 

I think it's important to understand what Peak Oil is and means and this whole notion of "cheap" is foolish.

Oil will be LESS available no matter the price.  Those who think, oh, well, I'll pay more for it but it'll still be there because only "cheap" oil has peaked are WRONG.

ALL oil has peaked, cheap, expensive, in between. 

Apr 15, 2010 11:15 PM

What is the solution?  Remain this hyperaggressive empire serving the foreign policy of an apartheid State?

Apr 15, 2010 11:23 AM

Yeah...I know that you know what the issue is.  Don't take my comment as a correction...I know you have this shit locked down.

It's a challenge, man...I've struggled with it.  Look at my other replies on this thread.

People hear that "cheap" oil has peaked and they assume, ok, well production will continue to increase, just at a higher price...that's deadassed categorically WRONG.

They hear that the US consumes 18mbpd and we just found 18Bbbl and so we've kicked the can 1000 days into the future.  And all this does is muddy the issue when Cantarell shed 2% of daily production just in the last few years.  And price goes up and people think we can just motor along except paying more at the pump.

The price is an artifact of supply and demand...people who think it's about "cheap" or whatever.

Gosh, look at Helium or Gold.  They peaked in 2002 and 2000, respectively.  Did "cheap" have anything to do with the Helium peak???  There is no such thing as "cheap" Helium because it's an artifact of alpha decay of radioactive elements (mostly U238), and is found with NG deposits.  Nobody drills Helium wells or does Helium exploration, yet it PEAKED and production has declined YoY since 2002.  Despite being primarily used for kids' balloons (though it is one of the more critically important elements because of cryogenic uses and superconducting research; MRIs need this as well as the semi industry.  PBMRs would ideally use He as a moderator and energy transfer material), it still peaked price be damned.

Apr 15, 2010 11:35 AM

You might be right...or you might not be.

I tried the easy way so many times, man, it's laughable.

People have very strong internal unwillingness to accept PO.

A case in point is Douchinger...he'll ban people for it despite implicitly knowing that it's true.  It has to be true.  After I got banned the 2nd time from TF for PO arguments in which I told him to google Cantarell, references to that field started showing up in his tickers.  And yet, he still bans again for discussions about it and calls it a religion.  Why is that?  He has to know that it's true; it can't not be.  To claim that you can exponentially grow forever is ab initio illogical and apodictically false.  But the consequences of the oil peak are too scary for anyone who knows they live in a growth system, so you get the ostrich syndrome and people latching onto things like "cheap" oil peaking and somehow these new reserves figures "meet" the world's oil needs for X number of days, months, or years, when the reality is that they don't.

So, in the absence of that, sometimes I just go for the bludgeon and patronize people.  Better to get the truth out.  What's worse, my bedside manner or the fallout from mass delusions regarding energy availability if we fall off a Cantarell-esque production cliff?

The data I see on wells is frightening, man.  My personal forecast is for world war; I am planning to leave for S. America or something to get away from this shitstorm.  I just can't see a way so many fat self-entitled people will be able to coherently agree when there is going to be nothing but demagoguing of "speculators," "big oil," or OPEC.  There are few who are capable of understanding the problem and among those, most refuse to accept it.

Burgan is declining higher than projections.  Prudhoe did the same thing; I got out of BPT over the discrepancy between its production on 10ks and the projections they put out.  Projections were those nice, singledigit declines, and reality was 15% YoY.  Cantarell absolutely crashed.  Newer wells peak sooner and crash harder than older wells.

What that means is that all of the reserves we found in the past 10, 20 years are going to hit peak quicker than our initial models suggested and then crash production harder and faster than the models did.

So even the PO-aware models forecasting a 3-4% YoY production decline may very well be VAST underestimates of what we're staring in the face.  If Ghawar goes Cantarell or Burgan does, we're straight up finished.  I mean the lights go out, cars stop driving type finished.  WW2 rationing style finished.

When the fat people can't gas up the SUV, they're gonna be angry and our leadership is right there to blame boogeymen.

Apr 15, 2010 11:46 AM

I like the adiabatic origin thesis...always have.

Don't make a damn bit of difference to peak.

Reserves are X, production is the derivative.  The two are unrelated.

I enter these PO arguments and at the outset, I say, assume reserves are infinite.  Peak still exists.  Peak is only the maximum extraction rate.

The trend Hubbert noticed was that Peak tended to be concomitant with the depletion of 50%.  People assume that ties reserves to peak somehow, but it was merely a correlation he saw when he developed his models (based upon that era's oil production profiles and distinct primary, 2ndary, tert extraction phases).

But dead dinos or trapped methane, what's the difference?

Apr 15, 2010 11:53 AM

Naw man.

Peak "cheap" oil creates the expectation of still-growing production, except at a higher price.

That is why I object to the term.  That, somehow, only the Cheap oil has peaked, but the expensive oil, yeah, we still got much more of that. 

We don't.  Oil past-peak will be less available no matter the price.  Even if we tomorrow converted all of our energy demand over to nukes and just kept pumping the oil to make more plastics and fertilizer, we'd have production declines YoY.  The oil price would obviously collapse.

Apr 15, 2010 11:58 AM

I'm plannin to just GTFO and move someplace warm that's an energy exporter and has hot babes.

Like Brazil or something.

Would just hate to own a compound here and be on the wrong end of a 30mm Apache cannon or else be downwind of an industrial accident.

Better to head somewhere people are used to walking around.  Like Orlov says, the US has very far to fall whereas collapse to a 3rd worlder is like fallin out of a window on the ground floor.

Apr 15, 2010 12:05 PM

Only if the YoY declines are severe.

But, yes, the inflection of the energy supply growth curve means a retracement of the entirety of the Industrial Revolution.

This is the biggest obstacle facing mankind, yet our last Presidential Election seemed to suggest that people thought that racism was.

The issue now is that our model of growth must change to one of contraction.  This DOES NOT MEAN that everything that has run on oil can't keep running.  It just means that there will be less things consuming less oil.  It needn't be the end of the world.  People walk everywhere else and get by on much less.

It ain't Indians that need to change; it's we who do.

Oil will STILL be abundant.  80mbpd or 70 is nothing to sneeze at.  Supply just won't grow.  Instead of more people driving more cars more miles there will be less.  Kind of like reverting down the supply curve back towards the 50s.

World gets bigger, shit gets smaller.  But hell man they have mobile internet in Afghanistan; you'll still be able to surf teh interwebs for pron

Apr 15, 2010 12:15 PM

Feel free to include me; we'll pool our gold and form our own bank and just leech of of everyone LOLz

I have talked with similar-thinking friends and we marvel at the chance we squandered during the 90s to basically put wind power and PBMR and solar panels everywhere with the "money" we spent.  We could have financed that through inflation and become a net electricity exporter, cracked H2 with it.

There were so many opportunities in technology to improve efficiency, lighter cars, alcohol and gasoline fuel cells, diamond-based semiconductors, etc., and we fucking did what?  .com and housing bubble and wars and SUVs.

Instead of being the ant, we became full-on blinged-out ghetto grasshoppers as a society.  The good times rolled hard with pimped rims.  Granite countertops.  Giant prefabbed houses.  Longer commutes.  More more more more.

Head on into the wall.

Apr 15, 2010 12:32 PM

Totally agree, and I hold COSWF!

Alberta was going to build a nuke plant for that, but of course things get bogged down.  So COS bought themselves a gas company that had 50 years worth of COS's production needs to burn NG (which is a freakin more valuable resource than oil) to make synthetic WTC.  Nuts.

Burn our food, burn our precious resources to support transportation needs in wasteful vehicles.  BRILLIANT!

Apr 15, 2010 12:38 PM

Get your real assets

Apr 15, 2010 2:43 PM

I wouldn't believe anything that came out of Sorass's mouth.

This is one of the principle architects of the 527 group movement; he spends money to influence policy in spite of public will.  Fuck him.  The dude uses his money to manufacture and repeat lies.

Apr 15, 2010 2:58 PM

Maybe a big fireball meteorite will hit 85 Broad

Apr 15, 2010 3:02 PM

Start writing CDSs...net out to AIG and securitize the cash flows.

Apr 15, 2010 4:25 PM

This is Iran moving its chess pieces in preparation for a counterattack.

I mean, we moved a ton of bombs to Diego Garcia, yet nobody talks about our provocation.  We'll announce another CVN moving to the Persian Gulf; can anyone as an American IMAGINE a gigantic nuclear-armed foreign warship within 20mi of OUR coast?

Apr 15, 2010 4:53 PM

Used to have the same argument with my mom...we all have blood all over us.

But so fuckin what anyhow?

Apr 15, 2010 5:00 PM

Oh, fuck off.

Most of the land that comprises Israel was PURCHASED.

Just like we bought Manhattan from the goddamned Injuns.

The rest Israel won in a war of INDEPENDENCE against the combined Arab powers.

You act as if the Partition was reacted to by the Ayrabs with sighs and resignation.  Bullshit.

They IMMEDIATELY attacked, claiming annexation of Palestine for Jordan.  Fucking learn your history, idiot.

Then, there were subsequent wars in 1967 and 73 (and in 56) where Israel won again and again.  That is how these supposed "occupied territories" came to be occupied by the Jooz instead of by the Jordanians.  Wanna talk about what the King did to the Palestinians?

Fuck your stupid BS about the damned white man. 

You may or may not like Jooz or Israel, but they fought a war and that's that.

Apr 15, 2010 5:01 PM

Yeah, as soon as the nonwhites can invent anything useful.  Till then, STFU

Apr 15, 2010 5:14 PM

Were I President I would pursue a policy of strategic disengagement from the Middle East.  The interests of Israel and the USA are not coextensive.  The way AIPAC and the moneyjooz manhandle our foreign policy is repugnant.

That said, LET THEM SETTLE THEIR BEEFS.  If the Arabs want to attack, fine.  When they lose, STFU AND TAKE IT.

Fucking Russia just annexed Ossetia in a war...are we bitching?  Jordan annexed Palestine in the West Bank, nobody said SHIT.  Then the jooz took it and now it's history's biggest crime (2nd of course to the Holocaust and anything any white person ever did).

WTFEver.  We need to GTFO and let them settle it.  If the jooz get pushed into the ocean, that's their problem.  If the Ayrabs do, likewise.  Fuckin WHATEVER.  If they're hellbent to go to war and kill each other, hey, have the fuck at it.

Let the Trial by Combat commence; both parties want it.

Apr 15, 2010 5:26 PM

We're an Empire.  This is what Empires do.

Are we better than they?  Of course we are.  Objectively.  But in this respect are we so much better that we have the right to kill and steal?  Hell no.  It's immoral.

This US is not the one of 100 years ago whose people were isolationists and where grass roots labor power made the middle class and everything the world values was invented in.

I personally despise the jooish bent of our foreign policy, and the power that the Tribe exerts for their own interests and how it changed the US's entire ethic from one of downhome values into hyperaggressiveness.  We morphed from a producer to a big culture bifurcated into the love and pursuit of money and moneychanging scams on one hand and on the other of ghettofied values systems where conspicuous consumption is valued and glorified along with misogyny, destruction, and filth.

Just trace it back to who owns the studios and banks.  It's a monoethnic message and narrative and it's got to go.  Dunno by what means, but this country has been flat fucking destroyed.

Apr 15, 2010 5:34 PM

Crock of shit.

You know how those particular Injuns came to be in possession of the lands they were on, right?

CONQUEST.

It's how the Incas became a fucking empire, how the Aztecs did it, how the Mayans.  Not effing democracy, but conquest and slaughter.

So spare me the crocodile tears because they ran into someone who conquered them.

What "we" did to the Africans?  What about what they did to each other?  How about what Arabs did to them?

Every fucking historical injustice is always about what a white person did...why?  Because we won?  Screw losers.

Nobody says shit about Shaka Zulu slashing and burning his way up and down West Africa, or anybody else.  Or how the Arabs invaded and conquered Spain and all the way to Tours before Martel turned them back. 

There is fault to go all around and history is EQUAL in terms of who committed what oppression; there are no innocents.

I would use your Tshirt full of those warmongers to wipe my ass.  The Apaches were notorious for being warlike, aggressive, and violent against any rival tribe.

Apr 15, 2010 8:06 AM

That isn't what Peak Oil means either

Apr 15, 2010 8:06 AM

That is not what Peak Oil means, either.

Apr 15, 2010 8:07 AM

You're an idiot.

What you're saying is categorically incorrect.

Apr 15, 2010 8:12 AM

DOE is just another worthless gov't agency.  I think they've been focused on playing with nuclear weapons

Apr 15, 2010 8:18 AM

No, it is NOT.

Peak Oil is simply a PRODUCTION RATE MAXIMUM.

It has ABSOLUTELY NOTHING to do with PRICE.

Price is fixed by supply and demand.

Apr 15, 2010 8:24 AM

Engineers are finding oil at a slowing rate.  Fact.

Engineers' discoveries of oil are outstripped by demand growth by 4, 8, 12, 14:1, at an accelerating rate.  Fact.

The rate at which we can extract crude & condensate achieved a peak in 2005.  Fact.

Peak oil is about rates.  Not "more" not "cheap" not none of this confused shit that people on this thread keep babbling about because they read a yahoo article trying to explain peak oil to idiots who thought it was "running out of oil" and now these idiots think it's running out of "cheap" oil.

It's merely about a maximum rate of production and an inability to grow it past that point.  And, it has happened.

The vast majority of oil-producing nations have already peaked and are in terminal supply decline.  The time-to-peak of newer wells is *lower* than older discoveries.  IOW, the "quality" of the reserves found today is lower.  They peak sooner, and production declines faster than the old finds like Ghawar or Burgan.

Nevermind that discoveries of oil peaked in 1964.  Wells simply aren't found anymore that will produce significantly more than 500kbpd.  Peak oil is a reality and it's a painful one.

Apr 15, 2010 8:29 AM

Yeah...heh.

The best-case depletion rates in the peak analyses were assuming fairly "benign" decreases in production.

I used to tell Douchinger to google Cantarell if you want to see the apocalypse case.  Went from the 2nd biggest oilfield in the world to now a minor producer in the span of just a few years.  Down 80% in production now, had 34% YoY decline rates.  Just horrible.

I have a world oil forecast showing shorter average time-to-peak and steeper decline rates with respect to recentness of discovery.  All the recent finds peak sooner and decline much faster than the old wells.  With the old surface fields, we could see the even 3% LA Basin-style decline assuming they haven't fluffed them up already with 2nd- and tertiary extraction techniques.  Burgan, last I saw was 8% YoY...

But, either way, the more recent discoveries tended toward double-digit decline rates.  It may be that we're about to fall off of a production cliff.  If so, world war will be at hand.

Apr 15, 2010 8:36 AM

Man, do you know how many times I've been banned from TF for trying to get people to accept this?  LOL.

If I were going to stockpile something right now it'd be gold, not because it's realer, but because you can walk with it.

The US's posture into the face of PO will not be pretty and I'm not sure you really want to be here in any capacity during it.

ALL depends upon the steepness of the production decline.  I maintain that we hit the C&C peak in 2005 for all time.  If we collapse like Cantarell, the lights are literally going to go the fuck out.

The biggest issue is the opacity with respect to production from Aramco.  How much water, nitrogen, and everything else have they been jacking into Ghawar?

Apr 15, 2010 9:38 AM

Nuclear won't power cars.

50% or so of the US's oil consumption is transportation.

As far as "looking for oil," if we eliminated all transportation tomorrow, the US would still require importation of oil.  We consume *that much* of the stuff.

Nuclear cannot power agriculture, either.  The real issue is that our way of life is incompatible with a climate of increasing scarcity.  Yet all policies are being pursued which actively ignore that.

This is not the time to be trying to restart "growth."  It's time to prepare for contraction.  That means the elites have to stop the rent-seeking and accumulation of wealth because the overall pie is shrinking that everyone needs/wants to eat from.

Apr 15, 2010 9:43 AM

Ah...Brazil...lol.

You know, maybe it's time you started listening to the experts about oil instead of talking?

The first thing you ought to do is to stop looking at potentially recoverable reserves or oil-in-place and look at the RATE OF PRODUCTION expected from those reserves.  Because this latter metric is the ONLY ONE that matters.

Canada has as much reserves in-place as Saudi Arabia did...yet these reserves cannot be produced at anywhere near the same rate as KSA's could.  Even if we foul every freshwater source west of the Rockies, the tarsands are at MOST 4-5mbpd, or LESS than what Ghawar alone produces.

The Tupi field in Brazil is 8-10Bbbl...yet it will only produce at most 500kbpd at peak.  Carioca has ostensibly 20-30Bbbl but at present not a SINGLE one can be produced.  The field is under miles of ocean, miles of salt, and miles of rock.  At what rate do you honestly expect these barrels to be mobilized to the surface and at what EROI?

The oil problem is NOT ABOUT RESERVES.  Hell, assume reserves are INFINITE.  It's about rate of production and nothing else.

Apr 15, 2010 9:48 AM

Dude...there is NO fucking possible way we could be self-sufficient in oil.  NONE.

If you believe otherwise, you're an idiot.

The US consumes 18mbpd of oil, we produce 6.

There is NO FIELD ON THE PLANET that can produce 10mbpd.  And there's NONE in the US that ever did.  Even the N. Slope topped out around 2mbpd.  This was the biggest find in the US since W. Texas.

You're just utterly insanely out of touch with reality if you honestly believe the US can be self-sufficient with respect to crude oil.  We peaked in 1970, dude.  Look it up.

Apr 15, 2011 1:59 PM

bc it doesn't require any energy to mine anything

Apr 15, 2011 11:52 PM

astroturfing shills should have the brains to at least get an avatar...this shit is transparent

Apr 15, 2011 2:04 PM

shouldn't they be hoarding bonds?  Bc a coupon in a deflationary environment is like printing money

Apr 16, 2010 10:03 PM

If they actually take down GS and the market, the plebes w/ the 401ks will squeal so fucking loud they will demand that it stop.

There is NO politically saleable point now in destroying the market to prove a point to a TBTF.  The market and gov'ts fortunes are now intertwined, and they cannot back this out.

They either inflate or else the gov't goes poof.  Even if they were to crash SP to 333 and drive all the money into "safe" bonds, the crash wave on those would come almost overnight.

Everytime the market drops a whole 100 points people in here get an erection.  Watch it go vertical on Monday

Apr 16, 2010 10:13 PM

You read O's unauthorized biography and you realize they've got him by the balls.  There's a metric assload of Illinois corruption all around him.  A scumbag like Rezko alone has enough dirt to bury the guy, nevermind the entire Chicago machine.

You gotta remember that Congress and O *took the fkin bribes* that got Squid paid.  Squid kept the cancelled checks.

I'm betting this goes nowhere, rather than an outbreak of conscience from a politician who has spent his entire LIFE standing for nothing beyond self-interest.

Apr 16, 2010 10:41 AM

All one need look at is the geography of the Caspian region and where pipeline would need to run.

A few lines on a map tell the tale.

Apr 16, 2010 10:42 AM

They already freakin have one.

How do people suppose that peg is maintained?

Apr 16, 2010 11:11 PM

Yeah...it should be obvious to anyone that members of Congress have been outright bribed by the Squid and its cohorts on WS.  I'm sure they kept the cancelled checks if you know what I mean.

The only thing that will take down the banks is a Hitler figure.  Someone who commands fascist control of the military and has the juice and no dirt.  That's not Bama.  Never was, never would be.  He's too in love with being President to ever try to stake something like this out, and there's enough dirt on him floating around out there, too many connections to Illinois fraud and all the actors around him have gone down.

The SEC is beholden.  Maybe an army of 10,000 lawyers suing on behalf of defrauded pension funds can cause death by 1000 cuts, or there is sovereign weight coming in across the Pond, but I doubt it.

You don't put your CEOs into the Treasury Dept routinely without a LOT of political clout.  That's not going to dissipate overnight.  They have killed investigations by "reaching out" to Senators before.

If GS "loses" this suit, it will be a strategic concession on their part and then they are absolved.  "Mistakes were made," a couple minor heads will roll, and some fines will be paid and then that's the end of it.

The government didn't hand $24T over to these guys if they were seriously considering taking them out; they already had the goods on GS's fraud for over a decade now.  Why pick now to do it?  Why not hit them with it a couple years ago instead of giving the Squid tens of billions?

You don't bail firms like this out with the sweetest of deals and then turn around and drive them into the East River.

Apr 16, 2010 11:18 PM

Show of support from me for pointing out the uncomfortable but rather obvious truth of virtual monoethnicity in high finance.

Apr 16, 2010 11:26 PM

The elites cannot maintain systemic control forever.

The black swan is the next Hitler figure, someone who steps out of the ashes of "austerity" and galvanizes people to see beyond money to demand blood.

The elites cannot control oil production nor can they save themselves from the guillotine indefinitely.

The most likely outcome is the hyperinflationary blowoff.  Look who seized power during the last depression and what was his first act with regard to the currency?  And we had it relatively easy.

All across the globe, dictator figures sprang up, relatively unsullied "populists".  The Age of Debt and Growth is over; nothing can stop what's coming.  A collision between the political class and the financier class is inevitable at this point.

But, I hope the 333 case is right, because I'm eager to start shorting again.

Apr 16, 2010 11:29 PM

I'm not ready to short with abandon until I see oil go into systemic shortage again.

The economy is driven by the availability of energy...we can rebound our production through money cheapness until we hit the overhead supply curve.  So long as there is surplus production, the status quo upward trend can be maintained.  However, I expect this time around that the Point of Recognition that this energy supply problem is not transient to be sufficiently more brutal than the last.

Apr 16, 2010 11:44 PM

Yeah, the gov't debt figures are why I still believe in the inflation case.

Against that, I have to stay long, GS fraud or not.  They don't own the only computers that can fluffer this market.  Equities will do as they do in inflationary climates, and that's inflate.

Mar 09 was when it dawned on people that yes the Fed was really gonna print.  A rise in yields crushes what's left of every debtor, which just happens to be like every government on the planet.

Apr 16, 2010 9:53 PM

Who wants to bet that this will come to a mountain of nothingburger?

We're going to see how much influence GS's hundreds of millions can really buy and how deep in the pocket Obama is

Apr 16, 2011 12:05 AM

gee, that sounds like racism.

why, bc he didn't pay for their gas and mortgages?

Apr 16, 2011 12:11 AM

the middle class is clearly insufficiently intelligent to understand what is going on.

Apr 16, 2011 12:12 AM

huh?  WTF did he say that was racist?

you white uncle toms are the problem.  Do you think that it would have made any difference to a group with an average IQ of 85 who was President?

fuck you with your desire for a "black" President- YOU are the one with the problem here.

Apr 16, 2011 5:53 PM

The Fed is selling puts on treasuries so people will hedge and go long the underlying.  That's  fine.

The downside of this trade is the vaporization of the dollar.  If the Fed has to "make good" on the debts, the only way to do it is to print.  People are as we speak using Brian Sachs as an unwitting fool, a tool to mine the Fed for dollars which they then flow into other "investments."  If the Fed ever stops or even pauses, the deflationary wave will be cataclysmic.  It is becoming more clear that the FOMC and all the regional chiefs have no clue what the NY Open Market desk is really up to in a deep sense.

The Fed is basically guaranteeing losses on Treasuries with dollars (that the Treasuries would pay).  Many parties have levered up in order to take advantage of this but when the trade unwinds, there is a stampede out of treasuries and dollars at the same time as a massive deleveraging.  Imagine trying to sell dollars to delever in dollars...I'm not sure how the hell the trade works.  Borrowing from the Fed to buy Treasuries and having puts on those treasuries written by the Fed; I see no way for there to be material deflation in this.  In fact it would seem to pave the way for hyperinflationary nova in the event that a stampede out of treasuries and resultant extinguishment of debt collided with the massive inflow of dollars on the puts.  I can't imagine at this point where total deflation met total inflation that anybody would have any faith in the FRN.  This arrangement is so silly that it calls into question the currency as a basic premise.

Apr 16, 2011 8:07 PM

you borrow from the Fed in dollars to buy Treasuries which are dollars.  They pay dollars as a coupon.  If you sold treasuries hard, there goes the dollar, but when you delever the trade, up goes the dollar?!?!

How do you then stampede out of Treasuries?  You have puts on those treasuries anyhow, so the Fed has to pay dollars.  If the UST collapses; it IS the dollar, so to speak, as much as the FRN is.  How could we have a strong FRN but a UST complex that has collapsed?

I don't see it as possible that the UST could collapse but the FRN is more worthful.

The end result of the Fed both buying the UST complex but at the same time writing puts on it would seem to be the dollar has to get vaporized.  The government would be in a funding spiral if USTs crashed at the same time as the Fed was making dollar good on massive levered bets against them.  How can this not crash the currency?

This would seem to make possible an outcome where credit outstanding started to collapse even as Fed obligations to pay dollars (but not lend) went ballistic.

Apr 16, 2011 8:38 PM

glocks most certainly do not suck and neither does .40.

There are definitely better arms out there (1911 is NOT one of them) but Glocks are ubiquitous and spare parts are available for these.

Also, .40 is a decent power round, not the best, not the worst, but again, ubiquitous as all the LEOs are pretty much carrying .40s now and Glock is the most common maker.

Apr 16, 2011 8:42 PM

fuck 911 and fuck the police too...a group of C students who rate only below incarcerated felons in terms of sociopathy.

Don't dislocate your shoulder patting yourselves on the back for how heroic you all are

Apr 17, 2010 3:21 PM

Good thing Europe has trains.  Imagine that sort of situation here.

Apr 17, 2010 3:45 PM

Let's see...I discovered Peak Oil around that time and started buying gold at $285 for a Maple.

I said that all the car mfrs would be BK, and my Pittsburgh coworker laughed at me.  At a college reunion in 1998, I said to a friend that the only way out was printing money to our debts and he said that his sister, who was in finance had said the same thing.

Yeah, I been on top of this.  I can show you my forecasts from at least 6 or 7 years ago expecting rogue wave financial events, and a Fed loss of control of the POG.  I also expect Japanese sovereign default.  This was just from stepping back and taking a look at the numbers.

What the future is should appear obvious, but there are many twists and turns along the way.

But it's going to take more in terms of specifics to execute a plan.  Being self-actualized is great until you are in the way of the Wermacht.  The worst part is that if we go apocalypse, blind luck will be as valuable as preparation.  That is the most worrisome element, that the situation is outside of one's immediate control.

Apr 17, 2010 3:58 PM

The Administration and the Congress are too deep into the pocket.  There are too many wire transfers and secret accounts and backroom deals.

Let's suppose the SEC or DOJ *really* goes after Goldman.  How long do you really think this lasts before the MDs at GS threaten to turn State's in exchange for immunity deals, and implicate everyone up and down K Street and both aisles of the Capitol?

Money will change hands and it will be made to go away.  Remember that this is not about right and wrong, it is and always has been about money.

Goldman will be fined...one of the side effects of having only corrupt politicians is that EVERYONE has dirt on them and can be Spitzer'd.  And this goes all the way to the top.  If Bama gets uppity and rediscovers a conscience after being shown a deck of Red Queens, his Kenyan birthcert will pop up somewhere or they'll suddenly find him on tape helping trade his senate seat with Blago on conference for money.

The SEC's moves against the aftermath of the Accounting Reform Act nearly cost them their budget several times. 

Apr 17, 2010 4:03 PM

I have to agree; GS has or will by now have already called all the people that they own.

Now, Senator X may not be willing at this point to directly and actively hinder the investigation, but it will be clear that if GS goes down, they are taking the entire motherfucking system with them.

If the government proceeds in earnest, this will lead to chaos and the disclosure of Pelican Briefs all over the place.

Apr 17, 2010 4:17 PM

If they go after the Street in earnest, expect multiple high-level GTFO retirements to avoid getting strung up along with an avalanche of election cash for the GOP and a political bloodbath landslide in November.

You take a collapsing stockmarket along with rug-pulling of bankster campaign cash and you have the recipe for them to put serious obstacles in the way of this getting any bigger.

We need an entirely new, non-beholden government for this to have any chance of getting anywhere serious.

Remember that the opposition party doesn't care about the truth or challenging the financier elite except insofar as it gets them back into power whereupon they will maintain the status quo as surely as the "End the War" Democrap revolution in 2006 expanded it.

Apr 17, 2010 4:24 PM

You'll know the answer to that if you see a rash of retirement announcements from key legislators and any sudden Spitzering.

Sooner or later, it will be the goldsmiths versus the King.  This tends to always lead to war of some kind.

Apr 17, 2011 10:58 PM

hyperdeflation in CREDIT (which was money) and inflation in unlent FRNs (payout on puts).

If the Fed is writing puts, there is nobody borrowing these FRNs.  They have to be conjured.

If the Fed wrote puts on all these credit instruments, they could vaporize the credit base and replace it with unlent FRNs.

Apr 17, 2011 11:05 PM

nonsense, as stated below.

A UST does not magically get value at maturity, dude.  It has a market price today and every other day.

Its price is based upon the NPV of all the FRNs it will pay over its lifetime.

The Treasury is inseverable from the FRN; in fact there is no such thing really as "cash" anymore.  All deposits get swept into shit like USTs.

The FRN can't go to zero and the UST have value in FRNs.  Likewise the UST can't go to zero and the FRN just skate through unscathed either.  The two are one and the same.  You buy USTs with FRNs and they pay FRNs as coupon and maturity.

Apr 18, 2011 1:39 PM

we had a credible army and navy then

Apr 18, 2011 1:39 PM

enough about fucking Dagong...where the hell are their downgrades to Chinese fraud companies that are uncovered DAILY around here?

Apr 18, 2011 11:15 AM

the dollar is not quality.

At this point the Euro is.  They are actually going to impose austerity and make the PIIGS bitches pay back the core EU bankers the money they invented out of thin air plus interest.

The core nations are going to try to bust out the periphery...this trend will eventually fracture the EU

Apr 18, 2011 12:37 PM

no; your violent crime rate will depend upon the concentration of a certain demographic in the area.  At least that's been the rule for the past half dozen decades

Apr 18, 2011 12:41 PM

well, now that the sovereign indebted itself to its eyeballs to save the banks, now the banks want paid back.

What a fucking con...make good on the banks' bad debts by borrowing from banks (that were themselves totally bankrupt), liquify the banks and now the banks come asking for their money.

We need to straight up eliminate the entire banking system.

Apr 18, 2011 12:42 PM

so the German banks lent the Greeks money to buy German products, maintaining Germany's high employment and SoL and now the Greeks can no longer credibly borrow money but the Germans do not want to let go of their export ponzi?  WTF.

The message from the exporter mercantilists is "god dammit, EARN MORE and BORROW MORE."

Apr 18, 2011 9:43 PM

time to get that geiger counter for my birthday or something...

Apr 19, 2010 2:44 PM

as real as the FRN itself

Apr 19, 2010 2:46 PM

Careful using subversive and seditious terms like "patriot."

Apr 19, 2010 8:00 AM

A whole lot of strenuous wishing going on in these GS threads.

A lot of shorts wanting "fair" valuations of the SP500 and for Goldman to actually get prosecuted.

WTF does fair have to do with anything these days and let's see if the market plunges first before declaring everything well on its way.

Apr 19, 2011 1:00 PM

but...bbbutt...Prechter's Idiot Wave forecast said gold was in "5 of 5 of C of 4 of B" and was going to go to 200!!!  And Douchinger agreed! 

Apr 19, 2011 1:37 PM

joseph's clan is still flipping the CDOs on cheops

Apr 19, 2011 12:52 PM

ammo is much more important to accumulate, once you have a few good guns

why?  You can't carry it with you when the local nuke plant gets a tornado strike and their backup diesels don't work

Apr 19, 2011 2:16 PM

well if you don't wear the pin du jour you will be accused of being AGAINST whatever it is that the pin of the other guy is FOR.

Because there are ONLY TWO STATES of existence.

Apr 19, 2011 2:32 PM

the intel says that this guy is totally disconnected from everything.  Has no interest whatsoever in actually being President, just wearing the AF1 jacket and riding in the plane.

He has no clue about any of this as he has never prepared, knows nothing, and wants to know nothing.

Look at his academic career.  At every point, people took care of shit for him because they needed him around to assuage their jew-sourced whitey guilt.  He's had his ass kissed at every turn by nearly everyone.  So in his mind all the details and all that shit are for other people; it's always been taken care of before, even his opposition in certain political races.

The guy is the archetypical empty suit, popup President, Teddy Ruxpin.  And he WANTS to be.  Those who thought Raygun was a suit; Bama is Raygun squared.  He reads a script and much like most actors, he's a COMPLETELY different person when the script is off.  Take Morgan Freeman for example, whom everybody assumes is deep and wise and highly intelligent as he plays the scientist in this role and the sage in that role and narrates shit even on Science Channel about the Universe.  In real life he's a stuttering DRUNK who banged his step-granddaughter.

Nobody has a clue who the real Obama really is...from the whisper reports, he's a chainsmoking, coke snorting queer.  Does anybody remember this guy from any point in his life?  Nobody knows nuffins.

Apr 19, 2011 2:35 PM

FOAD, mudshark

Apr 19, 2011 3:36 PM

you talk about your son like that? 

Apr 19, 2011 5:44 PM

complete bullshit!

This is NOT what happened to Amaranth.  Amaranth was using GS as a clearing broker, consequently, GS knew Amaranth's positions.  GS adjusted downward at that time, certain commodities' (levered long positions of Amaranth) ratios from its indexed commodities basket, causing a massive wave of selling of the underliers as every fund manager and mooch fund on the planet had to rejigger to GS's new basket apportionment.  You can look up there on the chart and see how the GSCI was adjusted; it was NOT NG that caused this, it was gasoline!  Amaranth's position in gasoline is what undid the fund as it caused a cascading liquidity problem for the firm.

GS then scooped up Amaranth's long positions for steep discounts in Amaranth's liquidation and covered their OWN short positions in the same commodities!

YES, IOW, GS used its knowledge of Amaranth's exposure to mount a speculative attack on the fund due to GS having the ability to control in the short-term the price of one of Amaranth's main leveraged positions.  Everyone should recall the sudden steep drop in the price of gasoline during that period as Amaranth's liquidation of positions rippled through the market.  Also, it served as a serious warning to anyone using a bigger fish as a clearing broker that you, too can get busted out like a poker whale by card sharks at the table (in this case, the table dealer).

Apr 19, 2011 5:54 PM

what clued you in, all the hundreds of billions of Treasuries bought from "caribbean banks"??  LOL

Apr 2, 2010 10:33 AM

R

O

T

F

L

Apr 2, 2010 10:35 AM

They don't have a Navy capable of invading Hong Kong, much less Africa or anywhere else resources are located.

Apr 2, 2010 11:01 AM

Bingo...and everyone, at all levels, is on the take.

They just aggrandized the gov't further w/ health care, got Krugman on Sunday TV talking about death panels, using that exact phrase.  And, guess what...you think the decisions of those bureaucracies won't be affected by bribes and lobbying and monetary influence?

Last time I was in Brazil, it was amazing the lack of understanding they have there, talking about how America is great vis a vis their country because they're so corrupt and we're not.  It took me a few minutes just to explain one method by which our high-level politicians are on the take.  The Jefferson County types do the simple cash bribes that are common in South America, but our Senators are at altogether another level of sophistication.

And nobody wanted to hear it; better to just maintain the dream and the image.

Apr 2, 2010 11:17 AM

Orwell:  in a time of universal deceit, telling the truth is a revolutionary act.  We are in that time.

Nobody wants to hear nor accept the truth.

Even those who consider themselves enlightened about the financial crisis, like the TF cult...go join up and argue with Douchinger about Peak Oil and see how long you remain on the forum.  Even the rational and intelligent struggle to avoid acceptance of the inevitable when they recognize its implications.

All exponential growth systems are INVARIABLY doomed in a finite world.  It has happened; it will happen.

A reality-based cause of the situation in which we find ourselves means a lot more consequences than merely a financial crisis.  Many WISH to believe that we can just "purge the debt" and move forward.  Mostly those who have vested financial interests or some "money" themselves and no debt.  We can just default it, "take the pain" (someone else of course) and get back to happy days and growth.

This is the end of the growth road for now, folks.  It was a great run. 

Apr 2, 2010 11:18 AM

Don't talk about The Tribe like that

Apr 2, 2010 11:24 AM

Can nobody here do a log plot?

The *surprise* at the scalar totals proves Al Bartlett's maxim.

If the debt doubles every nine years, the debt in 9 years will be $24T.  9 years following, $48T.  They will start having to issue $333B per day.

This is the problem with freaking compounding interest and the fact that math entries can continue to grow unabated!  It's why The Tribe was ordered a jubilee every so often; God understands exponential growth.

Apr 2, 2010 11:26 AM

Does Weiss not understand geometric growth either?

Absolutely nothing about this is in any way, nor should be, a surprise.  It shouldn't shock.  It's a necessary artifact of a growth function.  It should be expected.

This may stun and nonplus some people, but our debt's growth rate has been relatively level over long periods of time.

Apr 2, 2010 11:30 AM

You, uh, just said you spent it.

Apr 2, 2011 1:18 PM

nevermind all that, what are you wearing?

Apr 2, 2011 1:24 PM

maybe they hope to encase it in blacks

Apr 2, 2011 12:25 AM

launching missiles is an act of war

Apr 2, 2011 12:54 AM

it wasn't so long ago that France was gungho for war.

Things change.  The japs are peaceniks now but were warmongers 70 years ago.

Apr 2, 2011 5:24 PM

you can barely get a single junk anymore, hasbeen...

peep my skillz beyotch

Apr 2, 2011 5:34 PM

nigga, pleeze

Apr 2, 2011 5:35 PM

blacks are more racist by far than whites.  commit more hate crimes too.  Ballers like Jalen Rose can call Grant Hill an uncle tom; they're even racist against their own, nevermind against players like Peyton Hillis, who got racial taunts in every game he played.  Throw in some "beat whitey nights" and random racial mayhem to go with the 54% of homicides, rapes, and robberies annually...

If black intelligence is superior, I'd like to know why they lacked the written word and any mechanical devices until being oppressed with them by arabs or the chinese.

No time for your whitey guilt, punk...read IQ and Wealth of Nations or any of the dozens of IQ studies.  It's all right there if you aren't too scared to look.

What amazes me is that on a site with supposed "freethinkers," some subjects like this evoke classic pavlovian responses and political correctness cloture along with the classic "YOU RAYCIS"!!!

You bend yourselves into knots to accept a dogma that is unsupported by both facts and common sense.  In fact, the only thing the racial myths have supporting them is propaganda from hollywood and a heaping dose of Orwellian dissent suppression (which you participate in). 

Apr 2, 2011 5:39 PM

In order to do that, they are going to release information that there are no black people there

Oh man I NEVER would have guessed by the almost total lack of violent crime and abundance of high technology, ordered society, and scholastic achievement!

Thanks for the tip bruh!

Apr 2, 2011 5:41 PM

you people are so mindfucked you cannot even laugh at what was a pretty good comedic fodder troll

Apr 2, 2011 5:56 PM

My GARDEN?

Good god, man, what the fuck am I to do if my bugout ranch gets contaminated with Cs137?

In fact, FD1 has more than validated my derision toward the madmaxer ammo stackers with farms.

Gardening in a radiological disaster?  How about GTFOing.

Apr 2, 2011 6:03 PM

I bet it is a SFP problem...maybe a crack.

This is the ultimate Catch .22.  Without water in the ponds, you have no shielding; ambient radition makes access to the immediate site impossible.  And you risk an eventual high temperature fire which would expel lots of core components.

If the SFP is cracked and you spray water, you end up with a ton of highly radioactive water containing core components all over everything, radiation released is apeshit.

Thus, the need to encase these things in some kind of binding resin or concrete, just for the purpose of immobilizing them so then you can cool and get water shielding, effect a pond repair, and then go forward.

Apr 2, 2011 6:11 PM

We need to have isotope analysis...CPM won't tell us jack; have to know the energy of the particles or gammas

Apr 2, 2011 6:26 PM

a lot of those people were eventually rehabitated in other major cities, causing relatively massive crime rate spikes.  I would not have let anybody out of NO to cross into my town either.

Apr 2, 2011 6:27 PM

GEORGE BUSH DOES NOT LIKE JAPANESE PEOPLE

Apr 2, 2011 8:57 PM

it ain't my fault you can't get noticed anymore man...I got 40 junks on that post; that is champagne trolling.

Your jealousy is unbecoming; time marches on.  You're like a woman who doesn't yet realize she can no longer trade on her looks.  I thought you knew.

Apr 2, 2011 9:05 PM

Bob, I never in my life would have seen this post coming from you of all people LOL.  All these hate facts,  you rayciss

You forgot rapes and low graduation rates (even at HBCUs).  I particularly marvel at the ratio of black to white rapes vs white to black...it's a ratio of infinity.  Statistically, there was not even ONE rape by a white man of a black woman in the latest reporting year (resolution is 0-10).  Tens of thousands of the opposite.  Also add drug usage, welfare and SSI fraud, riots, looting, incarceration rates, arrest rates, lower FICO scores (those raycis computers), increased red light and speeding camera ticket rates (raycis computers again).

All these things are surely the fault of white people though

Apr 2, 2011 9:10 PM

bob, we want ANY evidence.

Just because you suggest it's possible, without any proof or evidence to support your case, and then claim that because someone can't prove its not true that this somehow establishes it as probable or conclusively true just doesn't make it so.

At some point, either begin supporting your claims or STFU.  Stop asking people to prove wrong whatever idiotic notion pops into your brain.  The absence of contrary evidence does not constitute evidence in FAVOR of your position.

Apr 20, 2010 1:16 PM

It's coming from government spending.

I'm going to say something very unpopular here:  the Keynesians were right.  Those who say that the only way to have money supply is for the government to run a deficit are correct.  It's an artifact of debt-based money, and the fact that private debt must eventually extinguish or default.

Permanent money supply is only achievable with perpetually growing government deficits.  This is why our debt figures are blowing out.  Private credit creation is in the process of reversing, leading to payoffs and liquidations and assorted deleveraging.  This is the deflationary trend we all see.  However, the interest claims levied upon the money supply at some point will be greater than the money supply itself as creditmoney vaporizes due to default or payoff.  Consequently, government must take up the slack and grow geometrically.

I'm not advocating this system...it's total bullshit, but the math of it makes these deficits inevitable or else the money supply would actually completely vanish in a deflationary implosion.

Apr 20, 2010 1:21 PM

An interesting study is to review the decline of Rome.

The political class became the feudal lords due to taxation policies.  Many couldn't afford to pay the property taxes and ended up selling themselves into serfdom to seek sanctuary under a political class member who could make "arrangements" with the taxmen.  This trend ran for many decades and ended up with a consolidation of land into massive holdings, the precursors to feudal duchies in the middle ages.

Forced production quotas (taxes) ended up making people into serfs.  It was simply too expensive to hold the land.

That appears to be the goal of these elites, to destroy the middle class through "socialism" policies which are really fascist.  I guess this is how after 100 years, the european nobility is not only still around but still lounging in chateaus and driving Bentleys.

Apr 20, 2010 1:24 PM

It's worse than that.

I know a guy who was in a senior position in the Clitton WH.  He's now a lobbyist.  During 2008 he said and I quote "I just don't see an economic crisis.  All the people I know are full-speed ahead."  We went to his $10M house for a party, which he had just built custom.  Pool, waterfall, 3 stories, basically a freaking mansion in the highest-rent geographical location around DC.

The richer you are, the better you're doing.  I imagine that the HC bill and TARP and all the rest of this has been a HUGE boon to those whose business it is to steer money and legislation and peddle influence.  Anyone sucking off the gov't tit is fantastically rich and getting richer.

Apr 20, 2010 2:05 PM

This is because Gold production peaked in 2000 and since, has gone into irrevocably supply decline.

Therefore, the price has nowhere to go but up.  The list of commodities whose supply has peaked recently is growing...an ominous trend.

As long as there is demand against diminishing supply, you have a rise in price.

Apr 20, 2011 10:47 AM

wtf is china going to peg to next, the euro?

Apr 20, 2011 11:37 PM

are you stupid enough to think DXY represents the real value of the dollar?

WTF was gasoline, oil, wheat, anything back then?

I suppose gasoline is in a bubble too...how long has it been since it doubled?

Apr 20, 2011 11:44 PM

COMEX isn't the counterparty; they just arrange the transactions.  They are an exchange.  COMEX doesn't need to have any real metals, as their job is to match a seller and buyer.  Find out who is on the other side of the short positions at COMEX if you want to follow the trail.

There is more OI than silver, meaning a lot of these will be cash-settled, which is the primary function of a commodities exchange.

Apr 20, 2011 12:11 PM

silver is as overbought right now as I've seen anything be in some time.  I would be very wary here.  It needs some time after a huge move like this to burn off the overbought condition, consolidate and whatnot

Apr 20, 2011 12:16 PM

let's see here...the bankers collapsed their banks with vaults full of ponzi debts where they sliced and diced and sold the same mortgage 3 times, then did the same with the slices and dices, resliced and rediced and resold 3 times.

And the shit came apart.  So the gov steps up and GIVES them money.  The people cry...so they step up and then LEND them money at 0%.  The people cry...so they step up and say you borrow money but we will GUARANTEE your debt.  And the people can't maintain attention span and it goes over.

Then what do the bankers running these collapsed institutions do?  They fucking use the loan money to declare record profits (treating debt as a profit) and pay themselves record bonuses and pay packages.

This type of behavior is utterly brazen and totally shameless.  There is not an ounce of contrition here.  As a matter of fact, it's just more abuse.

Apr 20, 2011 2:46 PM

chess using knockoff LV pieces in a room filled with water and air pollution that kills tens of thousands yearly.

Yeah, oh yeah those durned devious little asians have outsmarted us yet again, just like in the Boxer Rebellion and the Opium Wars.

China's $5T economy is a national ponzi scheme.

Apr 20, 2011 2:48 PM

two questions:  how do you expect to get into range of a carrier to fire off such a missile, and how do you expect to get any kind of targeting solution given active ECM that we employ?

You're aware that the Aegis systems can now be configured to fry incoming missiles' electronics?

Apr 20, 2011 2:51 PM

there aren't any aircraft carriers they can get their hands on...they bought a rusted-out Varyag.

China will invade?  Where, Hong Kong?  Even that would be a stretch for their amphibious invasion capability.

Apr 20, 2011 3:53 PM

it's nice to be popular.

the world hasn't ended yet...everyone in Tokyo is not "dead or evacuated," and it's like 3+ weeks since that prediction.

Apr 20, 2011 3:54 PM

bitch, I haven't been hiding...

but it's good to see that I'm always on your mind...

Apr 20, 2011 3:56 PM

I've read all the headlines and nobody ever, EXCEPT YOU, has claimed that.

You idiots make me laugh...a lot

Apr 20, 2011 7:37 PM

bonded rounds will not and most jhp rounds at any rate will fly right through car doors

Apr 20, 2011 7:57 PM

WOW...they launched a MISSILE, holy fuck!!!

That's like the first time that's ever been done, right?  And it's terrifying because YOU didn't know it was going to happen ahead of time.

Apr 20, 2011 8:02 PM

7k tops lol

70k?  Very few planes ever made have service ceilings up that high

Apr 20, 2011 8:12 PM

the water was never OFF, Claven!  And there was no berlin airlift of bottles either.

Being mocked by cretins is hardly worth worrying over

Apr 20, 2011 8:15 AM

yuan still at 6.52...WHAT push?  Down from a whole 6.8 over the last year

Apr 20, 2011 8:23 AM

the TSE should have crashed after Fukushima and the tsunami, but look at it...so long as the currency has any power, they can buy the market

Apr 20, 2011 8:26 AM

the problem however is that the Euro itself is totally fucked by the ponzi scheme run between the mercantilist core and the periphery PIIGS.

The ECB *cannot* honestly expect to use the USD as a funding carry currency to try to suck in enough capital to patch over Greece and Portugal, but it appears they may be doing exactly that.

A eurozone nation is currently paying 20%!  This is going to require massive new debt or printing.  Think about what the Fedgov would do if a state went BK.  This is what is going on here.  The euro is going to go through convulsions again and likely the POG will go ballistic in euros when it does, just like last time.

Don't look at the DXY for true dollar value; look at POG and Brent.  When the euro goes through its next inevitable bout of printing, the DXY will spike but nothing will change in terms of the true value of the dollar

Apr 20, 2011 8:40 AM

all our salaries are going down against things from every other country. 

Apr 20, 2011 9:50 AM

China concerned about debt???  Look, the banks are all STATE OWNED in China and they are carrying utterly massive losses on their books in all this real estate.

Who the fuck are they to talk about anything?

Apr 21, 2010 1:35 PM

the UK rightfully ought to implode.  So should we.

But the UK is an agent of ours and there's a significant interlocking directorate between the BOE and the FRB.

Apr 21, 2010 10:27 AM

Herein lies the rub:  the Keynesians are RIGHT.

Yes, they are.  They are right within their frame of reference.  It's easier for us to sit outside of this fishbowl of debtmoney and look and say wait a minute, this particular system is not the ONLY system.  But when, like Krugman, you have existed your entire life with the assumption that that set of rules was THE set of rules, you simply cannot see the forest for the trees.

Krugman may have a Princeton education, but his Ph.D. is in bullshit.

What the Keynesians say is true IS true within the confines of the debtmoney system.  It looks laughably absurd to us "little people" because we haven't been inculcated in the axioms of the economics "profession."  It's a dogma, pure and simple.  These are its believers.

Nobody these days can even have a discourse about Real Bills Doctrine or alternatives to debtmoney.  It's always creditFRNs or the "gold standard" which is a strawman that the debt merchants put up to whack down, and for good reason.

The system we have means SOMEBODY has to go into ever-increasing debt.  The problem is when the usury clan expects real assets in exchange for the diluted paper.  There are probably enough paper claims on real things now such that bankers nominally own the entire world.

You have to ask yourself the question:  how in the hell did they get so much capital to lend such that they can own the vast majority of houses, cars, etc., in the world?  The answer is very clearly that they never had the capital.  Perhaps individual banks ostensibly did, but the Central Bank, the FRB, NEVER did.  Not even fucking CLOSE.

The Central Bank is by definition a check-kiter.  It lent capital that it never had.  The Central Banking scam is clear from investigation into the BOE in the late 1600s.  There may or may not have been ANY capital put at-risk by the founders of that bank.  What IS clear is that they did secondary issuances nearly immediately to back out whatever capital they DID have at risk, paid themselves back any risk capital, whatever...they then put loans to the sovereign as their asset base and began kiting.

I mean, look at the balance sheet of the Fed itself prior to 2008...they had what, $800B, $1T of stated assets and what WERE those assets?  LOANS TO THE USG.  Where in the HELL did the Fed get $1T?  Did ANYONE, EVER put in $1T worth of ACTUAL capital to constitute this bank, so's it could lend it to the government?

Sure, the Fed's initial capitalization was some gold in the basement, but since 1913, it's been a nonstop accumulation of compounding obligations by the government to this bank...you can pretty clearly see that their POMAs involved the purchase of debt obligations, iow a loan to the USG, with money/capital that they didn't actually POSSESS.  Nevermind the way this system radiates out into the larger economy with consumer and financial credit creation.

The money was never there, they lent what they didn't have, from the ORIGIN of this banking racket.

Fractional reserve is NOT the problem.  A goldsmith who retains 10oz of gold and lends out 90, still has nominal assets, bushels of wheat, cows, buckets of coal, or whatever collateralizing the loan.  If that bank gets run, the depositors can recover against the farmer, the rancher, the miner.

The problem and bank runs come when the smith has 100oz and lends out 200.  This creates the inflation, and when he gets run, the deflation and cascading default.  You end up with surplus paper claims on the economy.

Apr 21, 2010 10:45 AM

This article highlights something that goes back hundreds of years.

The Euro is the modern incarnation of the Latin Monetary Union, a Napoleonic invention.

Napoleon was a lot of things, but he was very forward-thinking, and eminently populist in terms of the Code, rights, monetary sanity, etc.

No sooner did the LMU take flight than Britain, with its vampire banking tribe, attack it.  Britain has waged paper war with the Sterling Bill since its inception.

In today's world, the Euro was intended to be a transactional currency, with debt and deficit caps meant to keep not only Weimar from happening, but from BRITAIN or the US happening.  And so...we attack it.  Same old Sterling Bill, except now it's the FRN.  Our bankers cannot take assets from the weaker world if we have to actually cough up something real for our paper.  This is what the BOE and Rothschild types knew.  It's much, much, much harder to lend REAL capital than fictitious inflation capital because in the case of real capital you have to be productive, assiduous, and above all else, actually HAVE IT in order to lend it.

The Sterling Bill concept is much easier, issue them, inflate, deflate, just use "confidence" to prevent a run; worst-case, just declare them void and have the Royal Navy sail. 

So, our WS banks assisted all the weaker EU nations into the Euro, gee, what a shock.  We help embed a timebomb into this currency.  Everyone knows that we are seeing a speculative attack on the flanks of the EU.  Sure Greece is insolvent...who ISN'T?  If Greece takes down the Euro, shouldn't CA+NY+NJ+IL+FL+44 other states bring down the FRN?  Shouldn't the USG's balance sheet collapse OUR currency?

It only doesn't because we are still waging the centuries-old paper war with our own Sterling Bill.  As long as we have the Gulf in our pocket and the petrodollar lives, our currency IS the Sterling Bill.  Call it the Hydrocarbon Bill.  That's the only thing backing it anymore.

Apr 21, 2010 11:04 PM

Debt is a contract.

There is no moral obligation to repay a bank or to deliver on a contract.  We have contract law for that.

You have a moral obligation to repay your friends and individuals who lend you money, but they would not do so with usury.

Apr 21, 2010 11:07 PM

WTF...THEFT?

You people's conception of what debt is is absolutely stunning.

Theft is STEALING, larceny is the unauthorized and intentional carrying off of something that does not belong to you.

Borrowing money with no intention of paying it back is a VOLUNTARY CONTRACTUAL RELATIONSHIP between a debtor and a lender.

Your obligations are spelled out EXPLICITLY in the contract.  The onus is on the LENDER to do their OWN due diligence as to the borrower's intent to perform on the contract.

Apr 21, 2010 11:11 PM

Yes.

If it maximizes your own pecuniary position to default on the contract, DO SO.

That is exactly what your LENDER would do.

Does ANYONE HERE not understand that IN THE CONTRACT for all your precious mortgages and credit cards, it gives the lender the EXPLICIT right to CALL THE LOAN?  They can serve you with notice to pay in full right now at pretty much ANY point.

They don't give a fuck if you lost your job or your kid got sick.  Fuck you, PAY ME.

I have NO idea why people think repaying debt is a moral obligation.  It's not.  We run around like lemmings afraid of a FICO score.

The only reason I do not do what the OP did is because of employment credit reports, yet ANOTHER racket to force people to be debt serfs.

Apr 21, 2010 11:13 PM

Wow...that's an amazing and inspiring story for all of us.

You afforded putting kids through college on a few million unearned dollars.  Awesome.

I, personally, am tearing up at your tale of perseverance against all odds.

Apr 21, 2010 11:23 AM

Yeah...suffering under government-sanctioned monopolies is very trying

Apr 21, 2010 12:25 PM

The "terrorists"?!?!?!

So that's why the fuck we spend $800B a year on "defense"?

Obama is not cutting war spending, he's going to expand the wars as he already has.

Everyone wants Iran.  Russia wants Iran to control the oil and gas assets in the Caspian.  China wants Iran to control the oil and gas assets in the Caspian.  The US/EU want Iran to control the oil and gas assets in the Caspian.  Iran wants nukes so that they can't be had.

We have thrown the Chinese client state Pakistan to the wolves because India is now a better strategic asset insofar as they serve as a regional counterweight to a rising China against the backdrop of a less-powerful Russia.  In the Cold War years, we helped China and Pakistan against the axis of India/USSR.  Now that the USSR is no more, and China has risen so swiftly, we must adjust our strategic posture.  Militarization of India, including a big naval buildout, is necessary.  Russia has its own issues with Chinese power and they are all too willing to help.  Insofar as we desire to elevate India, we need to get rid of the headache for them that is Pakistan.  Expect us to foster civil war there.

Also, Israel's aggression is an inhibitor of forming an arab coalition to take Iran.  This is why zionists suddenly appear to be anti-israel.  We need them to give ground in order to curry favor so that we can "unite" the Gulf states against the Persians.  W and SE Asia are growing heavily multipolar with a lot of competing interests.  The Neocon policy of "conquer them all" has proven unsuccessful, so we must now seek to forge other alliances.  But the end goal remains and there will be no end to the wars.

Apr 21, 2010 3:36 PM

The Fed would never provide an auditor any real documents.  What, so they can say holy shit this whole thing is a SCAM!!!!

Apr 21, 2010 4:05 PM

Or for women, what's between your legs

Apr 21, 2010 4:06 PM

Come over to USTs...we NEVER have a failed auction!

In fact, we have record demand despite record supply.  It's amazing, in fact, just how strong we are.

Apr 21, 2010 4:12 PM

So what does this mean, that this lobbyist I know is going to need another $10M house?

Apr 21, 2010 7:58 AM

How about we break up Krugman?

Apr 21, 2010 9:42 PM

Douchinger?

Waiting to "capitalize" like a good vulture, huh?

Apr 21, 2011 3:28 PM

this idiot thinks we can just sustain this by coming to some kind of "compromise" as if the world and physical reality revolve around the idiotic whims of "Democrats and Republicans"???!?

Apr 22, 2010 1:03 PM

EVERY time anyone objects or tries to do something about the mercantilist PONZI that China is, we hear AGAIN about S-H and the "carnage" of the GD1.

Back then, WE were the mercantilist exporter!

How can anyone rationally discuss how "trade barriers" are a problem for the US when our trading partners have MASSIVE ONES in continuous existence?

Global trade is a one-way street.  And we've let it be that way because the campaign contributions pour in from executives whose bonuses depend upon that.

We should have slapped trade tariffs on China a decade ago for the bullshit they pull, nevermind their yuan peg.  Instead we let business interests who were making money off of this mercantilism through globalization dictate our policy.

What, were you sleeping through the carnage of the past 30 years to American industry?  What we've already GOTTEN is carnage.

Apr 22, 2010 1:07 PM

Again, WHAT?????!?!?

Here "comes" protectionism?

Look, dolts, protectionism has been THE RULE in Japan and China and Europe for DECADES.

Don't act like we're inventing this shit.  These have been sheltered and even off-limits markets for decades.  It made profit sense to american executives to drive their own bonuses up by offshoring EVERYthing.

Now, the jobs are all gone and the electorate is complaining.  The time to have done this was to NOT have passed shit like NAFTA and WTO/GATT.

China steals IP from everywhere WANTONLY.  And you call what we're doing protectionism?  Let CHINA and JAPAN and EUROPE play fair then come whine.  Protectionism has been VERY beneficial for all of them.

Apr 22, 2010 11:18 AM

Honestly, I see it as more sinister than that.

The Democraps are in power and they will suffer the electoral losses (money) consequent to being assigned blame for WS's excesses.

This is an attempt to play chicken with the GOP.  They can put up some finance bill that they KNOW the GOP (also in-pocket) has to oppose.  This will spread the blame just in time for the fall election cycle.  Great talking point to go out on the stump with - we tried to reform WS but the Repugs stopped us.

Nevermind that both sides are in the pocket and nothing will come out of this.  It's political theatre at its core and all about staying in power and maintaining lead-hog trough location.

Apr 22, 2010 12:05 PM

This must be great for the EU export sector to have the euro walked down like this.

Have to wonder if Germany *really* doesn't want this.  Greece collapses, the Euro falls, exports suddenly more competitive, a lot of inflation occurs.  Exactly what overindebted sovereigns would want at such a time.

On our end, we can get support for our weak auctions, then push our currency down too.  A great circle jerk

Apr 22, 2010 12:27 PM

They can't create the growth.  The energy supply has peaked and is in decline.

It's simply game over for growth economics.  All they have now are monetary levers and they're going to find out where that ends up.

ALL fiat currencies are going to 0.  The recognition is out there to discount them because debts expected to be repaid with tomorrow's growth are DOA because with tomorrow comes contraction.

They'll try all their negative rates bullshit and they will end up fucking EVERYONE who has paper wealth and FRNs right in the backside.  At the end of the day it will all be for naught because without more oil you CANNOT have more people driving more cars more miles.  You simply can't have aggregate growth without continuous net energy supply expansion.

You have to remember that EVERY economics treatise or school came of age during a period where oil supply expansion seemed perpetual and infinite.  It was an assumption.  During Keynes' time, the US was 40-50 years away from Peak and the world was 75+ years away.  For a human, that might as well be forever.

Apr 22, 2010 3:49 PM

Apparently I should have put my law degree to use in corporate finance...:(

Apr 22, 2011 1:49 PM

ur gonna need some big bars to get much Platinum for silver, genius

Apr 22, 2011 10:00 PM

I mentioned the same thing during the campaign to Obamanauts...I was like this guy seems to have walked out of a fucking cornfield 8 years ago.

There is very little history of his ever having been anywhere.  He was by his own admission born in Kenya when it benefitted him to appeal to immigrants, and born in the USA (tm) when he needed to be.

The only thing anyone can say is yeah he was in Chicago at Wright's church, but several of the homos who were also there got liquidated similarly to how Clitton's opponents in Arkansas all seemed to have accidents or get gunned down.

I have called him the BankermanChurian Candidate for some time, on ZH as well.  Nobody knows nuffins about the guy and nobody is saying shit.

While there could be a sinister angle, it is far more likely that the type of people who argue with me here over race issues carried Bama's water at every turn.

Who can recall having had a class with any of the "student-" athletes who make the NBA or something?  It was somebody else's job to handle Obama's grades and whatnot; he was groomed for other ends.

Apr 22, 2011 11:00 PM

Tyler, the guy is black.  Therefore, he can do no wrong.  Just roll over and chant the mantra with the rest of the freethinkers

Apr 22, 2011 11:04 PM

yeah, well, when the US *was* the "greatest country on earth," people like Obama were drinking from separate water fountains.

So, take your pick...what's it gonna be?

Apr 22, 2011 11:05 PM

land-owning white males are who we owe this thing we call "civilization" to.

Chew on that for a bit.

Apr 22, 2011 11:12 PM

read the article from the UK from John Cleese talking about why London is no longer an "English City."

And read the comments...the "racism" spectre pops up almost immediately.  If white people didn't vote, the members of the clan who control both the media and the race hustling machinery would go 365black on them.

The term racism was sort of invented by a clan homo sexologist bolshevist (Hirschfeld) and popularized by Trotsky/Bronstein.  It was spun as a particular affliction solely of non-jewish white europeans.  You can fast-forward this orthodoxy in a straight line to today.

Can you imagine a US President saying what Merkel said about foreigners who wouldn't assimilate?  They'd be savaged.

Apr 22, 2011 11:16 PM

that's the difference between racist tea partiers and by-definition non-racist black libs

Apr 22, 2011 11:17 PM

Right on cue, man...with Himmler allegories no less.

No sooner do I say it will be than you yourself show up to prove it thus.

Apr 22, 2011 11:21 AM

WTF are they going to restructure to, infinity years?

This is absurd; the growth of the economy CAN NO LONGER support the paper debts levied by the monetary system

Apr 22, 2011 11:21 PM

The main culprit?  Women, sure...blacks and hispanics, accessories after the fact.  They're not the money behind this system of destruction of our culture. 

Apr 22, 2011 3:00 PM

You have central banking and its bastard stepchild, Keynesian deficit spending.

Government debt represents the money supply lent into the economy.  Bankers, for letting us use their money, expect a percentage of everything we own and do.

During times of deflation, when credit contracts and the compound interest function threatens to implode the entire monetary base, vaporizing all of it in a deflationary catastrophe, governments resort to NECESSARY measures like Keynesian borrowing to maintain a money supply.  They have no choice.   The system REQUIRES perpetually growing debt.  It's either watch the whole monetary system implode and for there to be literally NO money, or else go to the bankers and borrow more.

The problem is the bankers; the compound interest racket, usury, the clan of usury.  Same suspects as always.

Apr 22, 2011 5:12 PM

ROTFL.

Money doesn't MATTER.  Why can't you people figure that out?  If the FRN goes to shit it will be replaced with something else.  GFD, man, there are BIG countries with hundreds of millions in them that are on their 3rd currency in the past couple decades!

What matters are real things like oil.  There is no reason for the ponzi to decide to inflect now other than the energy supply curve that underpins EVERYTHING is inflecting.

All those dollars you have, that anyone has, are merely claim tickets against some real THING that was brought into existence as a result of the application of force over distance, aka work or energy.  The rate at which energy is expended is power.  It's really this simple.

Apr 22, 2011 5:14 PM

this country has a suicidal diversity fetish.  Consequently, we have placed many people into positions of authority who are not in those positions due to merit.  WTF does anyone expect to come of this?

Supposing we desire more diversity on the F1 circuit...should we take Sebastian Vettel out of his car and replace him with a person more racially acceptable?  WTF do we think that person is going to do with his ride, succeed?  Take the championship?  Or crash immediately and not only fuck himself up, but the drivers around him?

Apr 22, 2011 5:18 PM

who cares what he thought about slavery?

You define the sine qua non of life as revolving around black people, an irrelevant failed race with historical achievements of nothing.

Apr 22, 2011 5:20 PM

so you walked in and voted for a failure...that makes you a failure.

Apr 22, 2011 5:26 PM

I see this a lot, what you say.

You are the one with the problem.  Stop trying to fucking control everything.

You need to come to a realization, not the sheep.

And this realization is that everybody is not CAPABLE of getting it NOR of waking up and even if they were, most wouldn't WANT TO.

So why are you standing there pissing into the fucking wind?  You may as well yell at the fucking clouds for raining when you don't want them to. 

Let go of the egalitarian "we all are equal" BULLSHIT that you believe.  And why do you believe it?  It's an even BIGGER delusion than what the sheep cling to.

I guess without it, what...everything seems purposeless?  What seems like injustice becomes just?  You lose your RIGHTEOUS indignation at it all?  This last one is really probably it.

I'll remember what you said about sheep waking up the next time I have one of you "freethinkers" call me a nazi or racist for pointing out simple facts.

Apr 22, 2011 5:27 PM

why SHOULDN'T the rabble be controlled?  They are fucking RABBLE!

JFC, do you expect me to go in front of a herd of cattle and command them to rise up and throw off their chains?  Stop rolling over for "the man"?

Where is the fucking NOBILITY in revolution?  Did you people NOT understand Brave New World? 

I've got bad news, man- YOU are brainwashed.  You and the savage and all the revolutionaries, a bunch of idealist fools.  People are who they are and there's nothing you can do about it.

If you believe in the fundamental "equality" of man, you are brainwashed.  Because it isn't true.

Arab problems are caused by arabs, low average arab education and a filthy religion clung to by people of low average intelligence.  Those who would have a chance to "make it" like in the USA but who can't because of poor bloodlines are the agitators. 

Apr 22, 2011 5:34 PM

so what, you're going to take away the black and hispanic and female vote that elected him?

ROTFL.

The real downside of all these "epiphanies" that "thinkers" get like 10 years after I do, is that the actual SOLUTION to the problem provokes apoplexy.

Most people in this country are so brainwashed by the diversity cult and this absurd notion of "equality" that once they identify the problem, they simply cannot stomach the remedy.  So they just do nothing.

And.shit.just.gets.worse.

I will doubtlessly be blasted as racist or something else-ist by some "freethinker" momentarily or junked by another "freethinker."

God knows that the orthodoxy of "economics" is a joke and is roundly pilloried around here but the orthodoxy of "race" is sacrosanct...LOL LOL LOL

Apr 22, 2011 5:37 PM

yeah...the world seems to want to reject him.

He should take all the things he's invented, which is basically everything, and just go.

Let the women and blacks work a society with all the shit they came up with.

I'm actually half serious.  White men should say ok, fuck you and should take all the oppressive technology of the white man, refrigeration, electric power, modern medicine, all of it, and should forbid its oppressive use onto nonwhites.  Because it's evil white man technology and is obviously highly oppressive, dangerous, and racist. 

Apr 22, 2011 5:40 PM

uneducated (schools are not encouraging creative thought or problem solving),

Schools can't teach that anymore because blacks typically aren't very good at these things and will underachieve and we simply can't have that.

Better to teach nothing so A's can be racially apportioned to "look like america."  Fuck the asian and white students.

Diversity is what matters, not intelligence or actual merit.  Diversity will invent the fusion reactor.

Apr 22, 2011 5:47 PM

Bill who?

I don't get the sense that you guys really fundamentally understand the dominant trends of the past 30-50 years.

ALL things must be sacrificed at the altar of diversity...we will have diversity even if it destroys us.  Skin color matters more than competence and there are tens of millions of people who subscribe to this value system.  Everywhere.

And they in many cases are the ones NOT getting promoted.  And know what?  A lot of them are happy about it.  You will see them making apologias for the murderer of those two Britons in the Sarasota ghetto.  They're everywhere.  And they are not only suicidal but they want you to die too.

They want the noble savage to kill them AND you.  It's some kind of perverse self-hate they are inflected with and this permeates throughout western culture.  The slavs seem to be resisting, however.

Apr 22, 2011 8:55 PM

Wow...what a veritable cornucopia of logical fallacies.  And you try to patronize me at the end of it, LOL.

Apr 22, 2011 9:04 PM

I don't care about your gf dude...nobody does.  Who gives a shit?

Her culture is a mess, huh?  Who made her culture?  Her race's culture is something you'd expect from people who are, on average, stupid and violent.

The statement about DNA is irrelevant.  Much of our genome is shared with yeast...so what?

Our brains are not identical and I challenge you to submit evidence that they are.  EVERY SINGLE physiological study shows disparities in brain weight between races.  All of them.  Whether or not you like to mudshark changes nothing.

Apr 22, 2011 9:11 PM

more incoherent "we're all the same underneath" nonsense from another "freethinker" PLUS a junk!  Too much LOL.  Do you think I give a fuck if someone like you junks me? 

You must be apoplectic that history played out the way it did seeing as how we are all the same.  Universal intellectual capacities...HAHAHAHAHAHAHAHA.  You have zero evidence for this, yet you state it as some kind of "conventional wisdom"

Black Africans never went much of anywhere, no.  As a race, they have historically showed little interest in discovery or exploration.  What they lacked in interest, they lacked tenfold in technology.

All your stupid insults about my heritage are wasted; how do you even know I'm white?

People like you really are pathetic.  You are incapable of a coherent argument, and try to emotionalize everything.

Apr 22, 2011 9:17 PM

you are utterly fucking insane.

People like you are the problem...your race's "bloodstained" past?  WTF race doesn't have a bloodstained past?  And wtf does any of it have to do with me?

I'm not liable for the sins of people who looked like me.  I'm not even responsible for my daddy's sins.

The xeer is a joke and so is your love of blacks, mudshark.  As for Ricardo's Law, it is irrelevant, unless you propose to move people like you to Africa where your standard of living can be increased to infinity.

Got a question...how are you using the internet in Somalia?

Apr 22, 2011 9:19 PM

nah, I didn't waste my vote; I voted for someone who would have actually meant a change.

That was not Muhcane.  So your guy won the popularity contest and now you are sitting here saying oh shit.  You got made a fool of and conned like a mark.

And now you want to try to pretend like "who knew?"  I knew.

Apr 22, 2011 9:20 PM

LOL...you are blaming the white people for the faults of arabs?  Wow.

See what I mean?  As soon as someone posts on this, you cannot HELP but parrot what your conditioning has convinced you of.  The bottom line is DO NOT QUESTION DIVERSITY AND POLITICAL CORRECTNESS.

I wish you were as smart as I as well; this conversation would go a lot more smoothly.

Apr 22, 2011 9:24 PM

Of course my analysis stands up to scrutiny.

Your counter "argument" (I'm being generous) is what doesn't, because you seem to regard ancient history as somehow relevant to now.  Then you go and talk about Al Qaida or something.  And then Christianity.

I'm not entirely clear on what the fuck you are trying to even say, and neither are you!

Because all you are doing is kneejerking some memorized shit in a pavlovian response to an attack on your DIVERSITY/POLITICAL CORRECTNESS reality.

I'm trying to unplug YOU from the Matrix and you are fighting me over it. 

The problems of the "human condition" INVARIABLY trace to the SAME ROOT CAUSES.

Apr 22, 2011 9:28 PM

FIGHT TO DEFEND YOUR DIVERSITY/PC FAIRY TALE!

Don't LET THEM UNPLUG YOU FROM IT.

DIVERSITY IS RIGHTTHOUGHT.  Strength through Diversity.  TRIPLE plusgood.

The greatest human achievements in history were the most diversitized (actually, the opposite is true).

Find yourself a PCZeroHedge.com and flitter over there

Apr 22, 2011 9:28 PM

fuck off, Cweed.

you need to wake the fuck up, son

Apr 23, 2010 1:04 PM

The euro was originally intended to be a production-backed currency.  Not quite asset backed, but with strict limits on debt-to-GDP so that it could avoid what has happened to the FRN.

The error was in allowing states that wanted to be like the US to enter the union instead of letting the FX take care of it.

Also, the exporters have discovered that backed currencies don't let you play mercantilist games by lowering real wages through currency debasement.

There are those who argue that the debt-based fiat stuff outcompetes backed currencies through speculative flows, ending up destroying them.  It's like how a parasite may endow its host with superior attributes to an uninfected cohort.  The parasite then has its roided up host kill noninfected peers in order to spread its dominion.

The Sterling Bill was the first true global fiat instrument and it was wielded as a tool of Empire and used to attack nation after nation, to kill their local trade and currency systems and replace them with a network of global seigniorage for the BOE.

In fact, BW was a mimickry of the Sterling Bill's mechanics; both in terms of its usage in global trade along with its ostenisble nexus to specie.  The reason we didn't get away with it as long as the BOE did was because of the H Bomb and ICBMs.  It was clear that we could attack the periphery, but a move against other core sovereigns would have precipitated Atomic War.  The new carry trades are legacies of what the Sterling Bill was...inflate, then deflate.  Speculative flows from "sterling" currencies cause massive booms and busts in the developing world over and over again.

In the end, all the national assets belong to foreign corporations or the multinational banks.  This is a centuries-old system.

Apr 23, 2010 10:31 AM

Long euro signal, then?  GS has been a fade so far

Apr 23, 2010 10:35 AM

They can't allow Greece to go BK.  LEH proved that you cannot allow ANYTHING to go BK or else the entire system cascades into collapse.

EVERYthing is so overleveraged and EVERYone is BK!  It really is a bunch of stacked dominos.

If Greece defaults, nevermind the CDSs, there is so much nominal exposure by EU banks and US banks to their paper, that the losses on those will drive up spreads and cause insolvencies all over the place. 

The banking clan has managed to put EVERYONE into infeasible debt and the entire world monetary system threatens to implode.  There really is no Plan B for when credit cannot continue to grow unabated.

Debt based money in a contractionary macro climate is toxic and fatally so.

Apr 23, 2010 10:37 PM

Why not just say you earned $405k?  Or 505?  Why not make the lie as big as possible?

Even if worth a few million, I know people worth 10x that who have significant gold holdings.

If you hate gold bugs, go on over to TF and you'll find lots of friends there.  You can regale each other with how much your FRNs are soon to be "worth" and have a big circlejerk.

Apr 23, 2010 10:45 PM

When you have 2 defacto reserve currencies at 0%, it's hard to see emerging markets not bubbling like hell.

The mature economies won't be the beneficiaries of all this free credit; that's the conundrum.  Liquidity trap.

Apr 23, 2010 10:49 PM

Did the war cause the terrorism or did the terrorism cause the war?

If war is big business, 911 sure was a helluva windfall.  Just sayin'

Apr 23, 2010 12:20 PM

I agree with you 100%

Gold is useless.

I have decided to store ALL of my wealth in the form of paper notes of a bankrupt sovereign and in negative interest rate loans to insolvent institutions.

CASH AND MONEY IN THE BANK BIATCHEZ

Apr 23, 2010 12:25 PM

Your FRN will be at .50

Just like it has been throughout its history...on a march toward 0.

Paper is the failure.  If the EU comes apart, what happens to the cash is king euro crowd?  They're all fucking broke.  Just like those who stockpiled rubles in 1989.

I'd rather stockpile oil than gold but I don't have my own tank farm.

Apr 23, 2010 12:29 PM

You freaking idiot...you can't GO BROKE holding gold.

It's a REAL asset, not a PAPER asset.

You can go broke with stocks, bonds, cash, and all other PAPER CLAIMS.  You CANNOT go broke holding gold.

There's no leverage in REALITY, ok?

People think gold is a "position"?  LOL.  It's a stack of bars or coins in a lockbox somewhere.

Apr 23, 2010 12:34 PM

Didn't I just say on the GS says short Euro thread to FADE the squid's PR?  Like fuckin clockwork...

Again, who cares how many FRNs an oz of gold fetches?  The FRN is a piece of garbage.

We're staring the complete collapse of a MAJOR world transactional currency in the face, the #1 component of the DXY, and the #2 in EVERY currency basket and people are shitting on gold or fretting over the "price" figure on it?

JFC, the Euro could well go to zero in front of our very eyes just like the ruble did or any of a dozen "pesos" over the last just 20 years.  Currencies collapse - it happens.  They're paper confidence schemes by definition.

Might as well argue over how many angels can dance on a krugerrand.

Nobody who stockpiles any tradable real commodity will get any beef from me...pick your poison and go with it.

Apr 23, 2010 12:47 PM

Agree 200%.

It's a damned good thing that cash never crashes to 0 value.  I'm still holding vast stockpiles of rubles and cruzeiro reals along with a freezer full of argentine pesos.

Soon as I get my shit together, I am bugging out to the USSR and taking my hoard with me to live the high life.  Gonna stop en route in Brazil and Argentina and FX those notes into Iceland krona which should be more useful in Europe.

Apr 23, 2010 12:52 PM

So then STATE AN ALTERNATIVE, douche!

STATE IT.

Apr 23, 2010 2:31 PM

Wrong.  Money is whatever two people agree it is.

Gold is a commodity that people value.

There are zillions of others.

I would personally rather stockpile oil.

Apr 23, 2010 2:50 PM

Given the realities of debtmoney, and the deflationary impacts of default, at this point in the leverage game, default of any kind must be prevented.

LEH nearly caused the end of the world in terms of debtmoney.  There were multitrillion dollar runs on accounts all over the world unfolding on Sep 18.

The entire world's CP market froze and is essentially still frozen.  Every single credit conduit ceased and had to be replaced by central banks.

What this means is that credit ceased to become money for a time on that day.  You could not trade credit.  Cash accounts were still worthful, but the picture was clear that there would have been a collapse in that shortly thereafter.

All it would have taken was inaction by the Fed along with a price breakout in oil or gold and the whole thing could have come apart, irrevocably.  At that point, nobody would have traded cash for anything real, either.

This is the conundrum that deflationists misunderstand - the window between worthful- and worthlessness for cash is very short.  If you want something *real* during a financial crisis, you best have it in your hands ahead of time.  You may find those who have it unwilling to part with it for your paper until the dust settles on what that paper will eventually be "worth."

In the teeth of a deflationary implosion, credit is worthless.  All forms of coupon paper were collapsing...even pricing something like CP or MBS during those days was impossible.  The market was reading "no bid," IOW 0.  So, for a time during the Sep swoon, anything with a counterparty was afforded a 0 market price.  The things standing were cash and real assets.  Parties only needed cash to settle accounts and to "fund."  Once the Fed stood in to lend to everyone, the acute crisis abated.

The confusing aspect of it was the paper prices of commodities, which fell dramatically while at the same time they became relatively unavailable for purchase, suggesting a real price significantly higher than the futures markets were quoting.  Buying retail gold at spot during that period was impossible.

However, given that every single deflationist has stated their intent to "get out" of cash at the right time, it's clear that the desire of people to get clear of paper within a short period after acute crisis onset would have caused a hyperinflationary supernova, meaning that within a few days or a week perhaps, people would not have parted with real assets for paper as hoarding and scarcity became the rule and market pricing mechanisms broke down.  I submit that the POG at $715 when every retail dealer across the internet (even large ones) had no supply and was quoting at $100 over spot (which was gone immed) suggests that the very initial phase of pricing mechanism collapse was underway.  Either the dealers were hoarding expecting that the dollar price was a de facto error or their wholesalers were, under the same presumption, or the mints or major sellers were.

It's instructive to examine the price trends during that period as insight to how wide the window to get out of cash will be.  WTF good is a futures price of $715/oz if nobody will sell it to you at that?

Apr 23, 2010 2:57 PM

And yet there are still those who do not believe that banks create money or that the Fed cannot be insolvent.

We will lend the IMF money we don't have in order that they can lend it back to us.

ALL HAIL THE FRN.

Apr 23, 2010 3:10 PM

The Greek People DEMAND PRINTING.

They cannot understand that the cartel that controls "money" has the right to issue this shit and have it have value whereas they do not get to do that.  It's seigniorage!  And you ain't the king. 

No, shit, national production is inadequate to FUND the consumption of the Greek People, consequently they have to go to the seignur and get paper that people respect.  And there's a price for that, Barbarian.

The price is that those who control moneyness will eventually TAKE your fuckin land and cattle and daughters and wells and mines and EVERYTHING because they have the power to bestow moneyness and you DO NOT.

And they only have it because of idiotic consensus opinion.  Or they have some pictures of a vault full of gold.

Apr 23, 2010 3:13 PM

This GS announcement must mean qual flight unwind imminent.

A significant EU deal must be in the works, so short the DXY, long everything else.

Apr 23, 2010 3:16 PM

That was before the evil white people who destroyed the noble native culture were driven out of the country, setting everything to right again.

Apr 23, 2010 3:37 PM

The Blue Pill?

ROTFL.

Do you think that your take on Real Bills Doctrine that you've articulated here is novel?  It's ancient.

I've suggested it myself a zillion times.

Apr 23, 2010 3:44 PM

There are two kinds of people holding gold, dude...

Well, maybe 3.

Those who want it to "go up" and who are specs.  The other are those who use it for wealth storage, divided into 2 camps, one that says this is a commodity like any other just more convenient than others for this purpose, and the 2nd who says "gold is money."

If your beef is with the 1st group or the last, then make it so.  Don't tell people who are acquiring gold as a real commodity to hold value that they are idiots because your alternative is FRNs.

If you prefer platinum to gold or oil to gold or wheat to gold, say so.  There is no difference between all these commodities in terms that ALL are fucking commodities that have real value.

I have repeatedly said that Real Bills Doctrine is the answer, that ALL things as well as IP and the time of experts should be discounted with Real Bills.  The system is perfect in its simplicity and that banks' function would be to create liquidity in a market where a farmer might have to trade 100 bushel wheat notes for a bucket of coal note and the harvest hasn't happened yet.  ETC.

Gold would be but ONE component of this.  All tradeable commodities would use marketplace pricing just like forex.  A unit of gold would be assigned worth of other units of coal or cattle or land by the marketplace and vice versa.

Banks would simply be respected liquidity providers whose job it would be to move THEIR commodities and more easily tradeable goods in lieu of less portable items.  A rancher trading cattle Bills for a haircut is impracticable, whereas a banker possessing NG or oil or gold or silver Bills could facilitate such a transaction.

Apr 23, 2010 3:46 PM

The answer to WHAT QUESTION, you freakin idiot?

Apr 23, 2010 9:48 PM

No, that's not what RBD is at all.  All bills are REAL bills.  Not credit, not funny money.  Everything must tie to something that can discharge within 90 days.

Banks can only discount and issue against real goods...that is the rule.  There is no inflation nor debt+interest.

Apr 23, 2011 1:24 PM

I know long term but I can't tell you in terms of dollars.

The US game will only come to an end when there is a mass repudiation of the FRN.  No sooner, no later.

That's how it always happens.  Nobody can really predict the moment such a thing dawns to collective Point of Recognition.

The Roman Empire collapsed over a far longer period than it took to read about the collapse.  This error of assuming the few minutes it takes to read the Wiki on Roman Empire Collapse is equal to the time it took for it to actually happen is a common one.

Apr 23, 2011 11:20 AM

Busch Doctrine on steroids

Apr 23, 2011 11:28 AM

bullshit.

The USSR collapsed and life went on.  There was no mass starvation.

Everyone thinking our stupid little empire is really THAT important- it isn't.

Apr 23, 2011 11:59 AM

Ignorant?  ROTFL.

You can call me a lot of things, dickhead, douchebag, asshole, whatever, but ignorant isn't one of them.

You claim I'm ignorant because I am suggesting that reality is OTHER than your conditioning?

What EVIDENCE do you have to support ANY of the claims made by the guy I responded to?  This shared heritage of cognition...where the fk did THAT come from?

We're all the same?  Really???  You believe that?

You people are totally mindfucked...you won't take the red pill because your very complete psychological conditioning makes it seem like you'll just die if you do.  Matrix writ large and the sheep here are living proof.

If we're all the same then we don't need black diversity.  Thanks.  We can go around as many times as you want in this and you will lose at every turn simply because your argument isn't supported by any facts or any logic.  It's a dogma.  Wake the fuck up and look around you.

Apr 23, 2011 12:08 PM

YES!

I'm glad you brought this up...environment DOES activate or deactivate genes.  Totally true.

Now, here's a riddle, what would you expect an environment created by violent, aggressive, and antisocial people to do to genes of offspring?  And what would you expect the environment of smart, organized, social, civilized people to do to the genes of their offspring?

This stuff is so effing patently simple if you look at it with your left brain and forget all the programming you've received about the danger of even thinking these thoughts from the MSM.

Apr 23, 2011 12:16 PM

I'm saying that this forum has a bunch of people who studiously pat themselves on the back over their socially accepted "freethought."  They think of themselves as progressive or alternative because they have discovered some shit about PMs or the Fed.

But when you bring up anything too near the edges of politically acceptable discourse, they revert to PURE sheep.

Go onto some open forum and post this shit about the Fed or Obama.  Watch THEM call you a nazi and a racist.

That is what I get called.  Should start seeing some parallels here.

Apr 23, 2011 12:21 PM

what you say is absolutely FALSE!

The black children of wealthy blacks score at about the same level of scholastic aptitude as POOR WHITES.

In fact, there are a number of studies, one of which was commissioned by WEALTHY BLACK PARENTS to have a black scientist analyze their kids and figure out why they were doing badly!

The things you believe are not true, ok?

I care not for race much because I deal with individuals.  Let them stand or fall on their own merit.  Just recognize that given the disparate distribution curves that you will not have a race-neutral outcome.

This will be true if you fund sickle cell anemia or use merit-based admissions or administer a 100m race.

Apr 23, 2011 12:23 PM

if you don't like WASP society, renounce the internet, medicine, and the car, and float back to Africa.

You can die of malaria or acquire river blindness or some other parasite that the white man oppressed out of existence centuries ago.

Fuck you and your race-baiting, btw.

Obama is not the cause, mentally ill lovers of 365black like you are.

Apr 23, 2011 12:26 AM

this is the rule in most places, and why the western white "rule of law" is so exceptional.

Corruption, however, is infecting everywhere.  I was talking to a belgian businessman in serbia whose problem to get some business running was to "find the guy whose hands I need to put the $400,000 into"

Corruption like this leads to and persists dark ages

Apr 23, 2011 12:30 PM

maybe he slipped and banged his head into Moochelle's pubic bone

Anyway, my point stands; he seems to have walked out of a cornfield 8 or so years ago.  Nobody knows anything about him, sort of like Michael Knight except without the cool talking car.

Apr 23, 2011 12:31 PM

yeah, when I see Idiot Abroad watching chinks eating fucking insects on a stick I KNOW that eastern civilization is superior.  Or maybe it was the lack of toilet paper...and toilets.

How many chinks been to the moon?

Quick question...why do you hate yourself so much?

Apr 23, 2011 12:40 PM

SBPDL may have a link to the Cleese article...otherwise you can probably find on google.  It was UK Guardian I think.

I've already read MacDonald years ago and watched "Defamation."

I have been one who "can see" since I was like 18 and my upbringing was such that if someone called you a racist, you got into a fight over it because it was conditioned as worse than a child molestor.

I know full well how the clan works and why the "Holocaust" happened.  The bolshevists were predominantly jewish, something that has been conveniently swept under the rug.  The race hustling machinery in the USA, the NAACP and SPLC are jewish and obviously the ADL is.  These organizations were founded by the same group of marxists as were contending for power in post-Weimar Germany.

The slavs are the white future because they straight up will not listen to this crap.  They tried the antisemitism crap on Putin when he ran the oligarchs out and it failed miserably.

My worry is that anglosaxons are going to awaken one day and overreact.  The savaging of Helen Thomas for speaking the truth gives me concern about the eventual outcome.

Apr 23, 2011 12:56 PM

the 4th dimension?  Like where the fuck is that?  Nubiru?

Frequencies adjust? 

Good god man, get a grip.  STFU first tho.

If this was your attempt to "counter all the hateful shit" I've been saying, then you need to get back into the workshop...seriously.

If you can't yet figure out why several thousand years ago isn't irrelevant to NOW, then I can't help you.  Honestly, you're beyond help and you need to find another frequency.

The biggest factor in us all is our heredity.  This is why when you raise a chimp as a pet, it does not end up going to college and studying what you did.  It's because it is a chimp.  It's not going to be changed materially by its environment. 

The problem here is that I state facts that people don't like.  When I say "blacks have historically showed no interest in technology or progress," I am stating a FACT, one which is pitifully easy to prove or refute simply by looking at history.  Now, you may question my motives for speaking that fact, but you simply cannot dispute the fact by claiming that my motives are hate-oriented.

This is why these types of facts are called "hate facts" among people who can see.  Because if you speak them, you are automatically assumed to be a hater.  Now, what could possibly make someone assume such a thing other than conditioning?  And why make that assumption if not for the VERY reason that it gives you an EMOTIONAL basis upon which to refuse to address the fact?  Soon as your opponent is "Hitler," you do not have to even agree with him that 2+2=4, because he is distilled evil, right?

I can state a lot of unflattering facts about blacks, whites, asians, or any group.  But stating them about whites will NOT evoke your reaction.  Stating them about any other group, especially colored, will.  So what does that say about you?

I mean, go ahead and shoot the messenger; the FACTS REMAIN.  Even if you cretins could manage to silence me once and for all, you CANNOT SILENCE THE FACTS.

The facts' incongruity with your fairy tale are what are causing you this psychological trouble, not my reminders to you of the facts' existence.

Apr 23, 2011 7:03 PM

look at Mexico too, or Indonesia

Apr 23, 2011 8:06 PM

no; if it comes to it we will just destroy China.

Apr 23, 2011 8:08 PM

who did? other caucasians?

Let's see here...Greeks, Romans, Turks, Persians...seeing some parallels here?

It was never the africans, nor the arabs...east asians weren't a factor until the renaissance where whites traveled there, not the opposite.

And yes, you are still racist; blacks will fail that test in abundance and there won't be very many black voters.  At 120, you are 2 and change sigmas from black mean IQ in the US.  Gives you a percent or so that will qualify.

Apr 23, 2011 8:16 PM

the way you people talk, you'd think Paylin collapsed Alaska totally and destroyed the entire State.

Last I heard, it was doing ok even with her at the top of its political pyramid.

Was never a fan of her beyond her tits, but still don't really get the hatred and the idiotic shit you say about her compared to Blama.  Blama is a motherfucking Teddy Ruxpin who's never held a job in his goddamned worthless life.  I doubt he went to a freakin CLASS even in his entire college career.

He's a gigantic NOTHING, a "concept" into which idiotic stupid white fuckers pour their racial guilt and hopey dreamy nonsense fairy tale wishful thinking.

How in any way could Paylin have been worse?  I mean, we hear minute by minute how the Prez is a fuckin puppet...she was going to be NOT a puppet??  If so, then HELL YES, vote for her and the wooden indian mfer and hope he dies!

ANY non-puppet at this point is a step forward.

So what would Paylin have done WORSE?  Could she have been MORE for Wall Street, gotten us into more wars?  I mean, what exactly was the downside? 

Apr 23, 2011 8:26 PM

I laugh at what you call "civilization," dude, just as I laugh at you.

You still haven't answered why you hate yourself so much.

Who cares about some civilization 10,000 fuckin years ago...wtf does that have to do with today?  Nothing.

Apr 23, 2011 8:38 PM

ROTFL...so you assert that blacks have historically showed an interest in technological progress and advancement but that the TRUTH of this has been hidden...

LOL; a perfect circular argument, eh?  You provide no evidence and cannot because the evidence is suppressed somehow by some Potent Actor.  Just trust you; it's there all right.  Certainly nobody can see it and there's no evidence whatsoever anywhere for it, but it's somehow true.

Why?  Because it would seem nicer if it were.

Blacks can't have lower average IQs and higher propensities for violence and antisocial behavior; they just can't.  Just 'cuz, right?

Blacks are jailed more frequently because they have a higher propensity to commit crime.  Slavery has not a fucking thing to do with this.  Neither does income.  Richer blacks have as high violence rates as poor whites.

Look, it's as simple as that you have causation backwards; CRIME causes poverty, not the opposite.  Law enforcement is NOT biased.

You want evidence?  You can find it...blacks have lower FICO scores, get caught more frequently (at similar rates to real live arrests) by fucking traffic, speeding, and redlight cameras!

So you think the computers are racist too?  The cameras are raycis?  Don't be a fool.

You blame this mythical white racism for all the actions of blacks.  Other groups come here in great poverty, yet don't resort to violence.  Countries and masses of people are VASTLY poorer than american blacks yet have far lower levels of violence.

I don't know what more I can say to you man; you entire argument is based upon illogical conclusions, false premises, and is totally unsupported by any fact!

Black crime rates are higher everywhere, not just here.  Look at england's data, France...anywhere.  I dare you.

Look at crime rates across income spectra; the racial groups break down the SAME.

Open your freaking eyes and look.

Apr 23, 2011 8:42 PM

Don't tell me what is in my mind, you ain't Ms. Cleo, dumbshit.

There are millions of toothless white trash out there, the problem is that most of them have IQs above black average.  Their crime rates are VASTLY lower than equivalently situated (socioeconomically) blacks.

These are simple facts.

I think I have very clearly stated in the past that I would sterilize these people too.  Does that make you feel better?  Or are you going to make some stupid shit crack about that now?

The "N word" rolls off your tongue, don't it?  And in the next breath you call me a racist...LOL.

Racist has no meaning anymore...so go fuck yourself.

Apr 23, 2011 8:54 PM

lemme guess, another DWL living in a whitopia.  WTF is wrong with you people, some kind of mental illness?

You drop the N bomb and you think, what, that because you profess this equality shit from your white society far removed from the blacks you flee that somehow you are entitled to use this word because you shit on your own kind?  Wow...totally mindfucked.

Apr 25, 2011 1:30 PM

Washington CityPaper didn't call him Eric "Place" Holder for all those years in the 90s (when he was US atty) for nothing

Apr 25, 2011 1:33 PM

Big nothingburger.  The guy was in unallocated; it says that you cannot take delivery.  He's a dumbass for thinking he could.

If COMEX can't make delivery, it's not COMEX's fault; it is the fault of the shorts who don't have the metal.  Futures exchanges aren't meant for buying real commodities, only price fixing in currencies.

Apr 25, 2011 10:04 AM

Why do you idiots keep repeating this "fault line" bullshit?

The entire nation of Japan is a fucking fault line.  The earthquake did not strike UNDERNEATH THE PLANT, nor was the fucking earthquake the CAUSE of the disaster.

A tsunami was!

Apr 25, 2011 10:08 AM

124cpm at elevation next to GRANITE?

become educated.

Apr 25, 2011 10:11 AM

Uranium is too heavy to carry across the ocean via these means

Apr 25, 2011 10:21 AM

everything got slapped down off the frothy asian highs...chill out

Apr 25, 2011 10:22 AM

dltd

Apr 25, 2011 10:25 AM

let them fight over it with the paper...shit goes up, shit goes down, whatever

Apr 25, 2011 2:28 PM

you were in April 20s?  And you "rolled them"?

So you mean you took the $0.0 they were worth and did what exactly?

Apr 25, 2011 2:28 PM

it's bc you give off a really gay vibe they are drawn to.

Apr 25, 2011 8:10 PM

did AP mex morph into CO mex?

Apr 25, 2011 8:14 PM

why don't the other dealers just arb into this?

Apr 25, 2011 8:27 PM

Was a decent interview, dunno what all the crap was about.

He doesn't do a particularly good job articulating that he believes in the rule of law and that the authority to spend on whatever is not given to Congress under the Law.

Whipi was a good example of a libtard, first by trying to carry the water for the Black Man and then with the Planned Parenthood social wedge issue

Apr 25, 2011 9:54 AM

But, Barack Obama you turn out for in the tens of thousands to worship his shit, huh?

Why should anybody give an utter FUCK what you people think when you rallied for the clown we have now as if he were the 2nd Coming?

Apr 25, 2011 9:56 AM

Why the fuck these commentators cannot understand that China is a DERIVATIVE PONZI atop the FRN is beyond me.

YES, if our monetary system is a ponzi, China is a ponzi^2.

They cannot survive parity or nonzero ROI.  How many empty cities need to be documented before these people with their linear extrapolations get real?  China will have to double their empty city count, double the idle factory count, etc., to reach these figures.

There isn't enough oil supply anymore to permit all of this.

Apr 26, 2010 12:42 PM

You must default when it makes economic sense to do so.

Your lender would call the loan if they were entitled to do so and it made business sense, and they would default on their own obligations if it made sense to do so.

stop confusing a contract with a moral obligation

Apr 26, 2010 3:58 PM

GLD bitches?

Apr 26, 2010 4:56 PM

Yes...the intelligent and astute investors among you dumass goldbugs have invested heavily in it.

I have a vast stockpile of rubles in my bugout bag and I'm moving to the USSR when TSHTF here.

CASH IS KING

Apr 26, 2010 5:00 PM

So a negative lease rate means what, that holders were paying those with cash to borrow their gold?  WTF

Apr 26, 2010 5:01 PM

Yes, Pt at nearly the POG in 08 was the buy of the century in metals.

I'd love me some Pt but the spreads are whack on the 1ozers

Apr 26, 2011 1:26 PM

I have to come to the same conclusion.  Either the Fed pissed in his flakes or else he's got a conundrum in terms of the expected return of his AUM.  He can't make his numbers on the pisspoor yields that the UST is paying.

So he has to hope for better absolute returns in deflation.  He wants austerity so he can be a "wizard" and lock up bonds at higher coupons and keep TRF humming along before his flock deserts him.

Gross doesn't fucking care about the country; he cares about making his numbers.  Funny how the assholes who profited the most from the bond runup are now demanding that their cash become more worthful.

Apr 26, 2011 1:28 PM

this shit caused the last Holocaust.

A sliver of one clan ended up, through their control of the monetary machinery, with ownership of the entire nation.

We must hope that we get someone like Putin who only levies his sword against the sliver, and not the entire group.

Apr 26, 2011 1:38 PM

So Congress pitches in with $350M of cuts to defend the dollar??  And this is fiscal sanity?  This is the best that can be done.  How the hell does our balance sheet not implode.  Congress will turn on the banks and bankers as soon as they are not fed; this is the way it works with corrupt officials.

Let's ask ourselves WHO elected these people and who backs them?  It ain't Bill Gross.  He doesn't have the juice to do that.

The powers that be like inflation and debt.  Maybe there is some point at which no more debt can credibly be sourced and then the sliver of the clan tries to apply their claim tickets against the real assets and economy.

Gross will be getting in line behind them.

Deflation won't help anybody, least of all the people who back the Congress.  Scarcity of money means scarcity of campaign contributions.

Apr 26, 2011 1:42 PM

...and then Peak Oil grinds all this to shit

Apr 26, 2011 11:59 AM

If there is a full devaluation of fiat currencies down to 0, your gold will be less valuable than lead, which actually has uses in the real world.

This is just idiotic nonsense...the largest economy south of the border and 5th most populous country on the planet, has seen COMPLETE devaluation of more than one currency just in the past couple of decades.  There has been no time at which fucking bullets and the use thereof are a substitute for anything.

Apr 26, 2011 12:04 PM

Moronic article.

The gold/oil ratio tells you all you need to know about the "price" of gold.  All that matters is the rate of gold oz per any other real thing or service.

If gold goes to $15000/oz, oil will be at $1120/bbl

Apr 26, 2011 2:15 PM

quite possibly, but maybe not.

The Ahabs have gotten lots of fun toys and shit like F15s for the princes to play around in.  The dollar still buys them Ferraris and Bugattis and yachts and whatnot.

Apr 26, 2011 2:21 PM

buying physical is neither investing nor trading.

If the expectation is to capture a rise in price and buy low/sell high, then it is speculating.

Investing is placing capital at risk to generate a return on investment, not a capgain.

Apr 26, 2011 2:25 PM

This forum is full of silver speculators.  I think you are wise to trade it.  I would NEVER hold enough silver to worry about the moves in price.

If you are planning for EOTW shit, fuck silver; it's far too heavy to lug around.  Those stockpiling silver are anchored to their spot on the ground.

That said, I see no compelling reason to get physical silver.  The people who are advocating that are doing so because in their words the paper price of silver will go up up up and they want to "cash in."  IOW, they are pure FRN speculators wrapped in goldbugz clothes.  If that is their goal then SLV or IAG should be fine or a miner like SLW or Fortuna.

If you can trade your physical silver against physical gold or platinum with a sub rosa cost basis, then I suppose I could see it.

Apr 26, 2011 2:28 PM

lol and right on cue, Claven is the next post down hahahaha

Apr 26, 2011 2:35 PM

can you point me to where the fuck else gold has ever been illegal?

I mean I look through a ton of hyperinflations and I don't see it...

Apr 26, 2011 2:36 PM

oh, jesus the fk christ, all this gov't will declare it a felony...dude, the government will fucking COLLAPSE just like USSR's did.

Drugs are already illegal and they have 60-year federal trafficking sentences on some of these things.  Get your head out of your ass.  The reach of the gov't to impose itself into your life and dictate wtf you do will vanish in the event of systemic default because NOBODY WILL BE TAKING THEIR IOUs!

Apr 26, 2011 2:41 PM

he's right tho...fuck silver; who isn't kicking themselves for not having way OTM leaps on WYNN or GGP?

You could be retired right now with all the Eagles your heart desired, too many to carry, if you had put one decent sized levered bet onto either of these issues at the depths of the Mar 09 darkness.

Even those of us who made out apeshit shorting in 08 could have put the egg onto KMP and watched 3x capgains PLUS a 15% dividend from an issue that just pays on the pure movement of NG through pipelines.

Apr 26, 2011 2:44 PM

if he's saying that, then he's a fuckin idiot

Apr 26, 2011 2:54 PM

Life ain't Call of Duty, son...you get shot in life, it's for real.

In madmax, that pretty much means dead.  You will leave a nice stockpile of bullets for your killers to trade, so take solace...

As Sheriff Bell in No Country for Old Men said, "even in the contest between man and steer, the issue is not certain."

Apr 26, 2011 2:56 PM

I cannot concur, as oil's supply decline will be steeper than gold's and gold still exists.

Apr 26, 2011 4:03 PM

some wealthy Cali place had already done this...but yeah, if you're not a resident, expect the automated system to pop an alert up on some cop's computer and a vector to your location as you pass through the area

Apr 26, 2011 4:12 PM

why the fuck would anyone "invest" in the total CON that is China any longer?

And their 'economy' will pass ours?  I guess this is fitting as they are about the only bigger fraud than the USA these days

Apr 26, 2011 4:21 PM

last time I rode up round Great Falls I saw for sale signs fkin everywhere.

There's been a lot of compression, but DC is gentrifying and so has held up.  Arlington and Alexandria as well

Apr 26, 2011 4:24 PM

how much more do the materials cost for the bigger unit?

Apr 26, 2011 5:48 PM

OMFG, the BANKS aren't making enough money...CATASTROPHE

Apr 26, 2011 5:54 PM

this article is a mfin joke, right?

Apr 27, 2010 1:28 PM

Gold trading opposite to industrial metals as well...very interesting.

The quality trade is going to be like sovereign dominos. Weak nations are going to come under increasing speculative attack in this race to the bottom. And, the strength or weakness is in ability to defend the currency.

As long as we have the petrodollar, the USD remains the strongest. At this point, nobody can asset-back because their holdings would come under redemption attack almost immediately. Bigtime game of sovereign chicken.

Apr 27, 2010 10:06 AM

My immediate take as well.

It is grotesque to call a growing population healthy and a steady-state or contracting one bad.

Growth is healthy until you run out of headroom.  And then it goes apocalyptic.  Everything is fine until the last doubling interval and all hell breaks loose.  Every assumption must change, everyTHING must change.

This idiot's commentary shows the inherent and fatal flaws in the "study" of economics.

Apr 27, 2010 10:10 AM

Who creates culture, the Culture Fairy?

Cultures are or are not BESTOWED upon peoples???

Cultures, as I have said many times, are a reflection of the aggregate attributes of a population.

In Forrest Gump's words, Stupid IS as Stupid DOES.

If you remember High School, the dumb kids had cultures in their subgroups that reflected the base and the crude.  The smart kids gravitated toward things like chess and math.

Culture is NOT an accident.  Monkeys and Dolphins have their own cultures because of their capabilities.  One should not adopt a chimp and expect it to acclimate to human culture because it is a chimp.  This is a clear example where inherent attributes matter.

Stupid white people have cultures that are lowbrow and crude and base just the same as stupid people of any other race who have the same aggregate or average attributes.

Apr 27, 2010 10:16 AM

This is EXACTLY what was tried in Zimbabwe and South Africa.

Denude the landscape of the farmers and creators of the wealth, and turn the keys over to the indigenous population under the assumption that the infrastructure would carry them to wealth.

Sitting idly on farmland does not produce wealth, farming does.  Houses don't build themselves.  Apparently, the marxist left cannot grasp that or does not care.

Refer to deathofJohannesburg blog for results in S. Africa.

You now have a city resembling actually Detroit, which we all are familiar with.  Empty highrises with bricked up fronts.  Witch doctors on the 2nd floor.

After Katrina, we saw a slice of Little Africa, total chaos, roadside corpses, a population willing to sit in squalor and decay.  Contrast this to the floods in the Mississippi Valley in the following years, the wildfires in San Diego (in which a large group of people gathered at QCom stadium), this year's floods in New England, the Kobe Quake, the Indonesian Tsunami.

The list goes on an on where certain populations inherently self-organize, maintain order, do not riot, loot, or participate in generalized decline.  From ALL sides of the income spectrum, too...income is the LEAST correlated with this type of outcome of the relevant variables.

Apr 27, 2010 10:25 AM

This is a politically correct backing into the truth.

I'll ask you this flatly:  WHO creates culture?

And I will answer...the people do.  There's a reason that people who are primitive have primitive cultures.  There's no amount of education that can surmount a fundamental lack of critical mass attributes to support enlightenment.

Stupid is as stupid does.  Groups of smart people do not revert to the Dark Ages; they are who dragged us out of it.

I mean, do you or do you not accept that India ostensibly has a culture that is Pre-Enlightenment?  They incontrovertibly do.  It's really not about that.  Among certain populations, progress, civilization, math, and technology have stickiness; among others, they do not.  It's really about intelligence more than the artifacts of the past.

In fact, in the 2nd world, like India, you can see stratification along intelligence lines among the same cow worshippers.  All people do not have the same capacities; it's as simple as that.  Expecting a person who is mentally retarded to do calculus is foolish and self-defeating.  Pretending that he can is absurd.

Apr 27, 2010 10:28 AM

Ashkenazis have the highest average IQ of any measured ethnic subgroup.

This is why Israel is prosperous while neighbors are not.

The neighboring nations lack the population necessary to support the "scientific method."

The Arabs who are intelligent enough to understand science all left arabia and sought out like-minded people just as surely as cliques form in schools across this nation along IQ lines.  Culture is created by PEOPLE, not the converse.

Apr 27, 2010 10:32 AM

It is relatively trivial to conduct a systematic refutation of GG&S, and I have done so elsewhere years ago in arguments around the same topic.

Several fundamental assumptions or postulates in GG&S were false and refuted by archaeological evidence discovered after the publication of the book.

GG&S was an attempt to bend the truth around a particular hypothesis.

Apr 27, 2010 10:38 AM

So the only thing saving OUR markets is our ability to print money until it goes wheelbarrow

Apr 27, 2010 10:39 AM

Huh???

Are you aware of the gap between the wood age and the coal age?  It was hundreds of years.

Apr 27, 2010 10:42 AM

There is NO SUCH THING as Peak "cheap" Oil.

Uranium and Thorium are ALSO subject to Peak conditions.  All physical resources are.

There is a physical cap to the number of reactors a nation can deploy.  France is already there.  During heat waves, they must idle capacity in order to prevent heatsink temperature leading to a massive ecological catastrophe. 

Standards of living = ENERGY consumption per capita.

As for this nonsense about "appealing," COST IS IRRELEVANT.

ALL that matters is EROI.  Nothing else.

Apr 27, 2010 10:44 AM

Are you guys nuts?

Natural Gas ALSO PEAKS.

And its decline curve is like the side of a cliff.

The issue is EROI...

Apr 27, 2010 10:51 AM

No, it really didn't.

Islam is not monolithic...the standard of "progress" was borne by Turks and Persians and Kurds and whatnot, not generically by "muslims."  Arabs have been relatively backward since Carthage fell.

The Ottomans were an outgrowth of the Byzantine and Roman...look at what the capital of Turkey is.  That was the eventual seat of the Roman Empire and subsequently the capital of the Byzantine and Ottoman Empires.  Basically, it was the same people as it had been since Rome operating under a different ridiculous and punitive religion.

Apr 27, 2010 11:13 AM

Agree.

But this says nothing about now and the near future.  IQ drift and gradual rise takes a century or more to manifest.

As nutrition betters in the 3rd world, assuming it does, one should expect attributes to rise with it.  But, in the meantime, there is no falloff in the already developed world.

Few are tracking the rate of IQ change across populations and whether the discrepancies will ever normalize or whether they will continue to persist.

There is a pretty substantial gap between an IQ of 120 and one of 100.  That's in excess of 1 sigma.

Apr 27, 2010 11:19 AM

Systematic insolvency at all levels...who knew?

The monetary system itself is a manifestation of insolvency.  The future CANNOT pay back today's claims.

Apr 27, 2010 2:08 PM

Yeah the Pound Sterling at that time was a gold sovereign.

Apr 27, 2010 8:20 PM

LOL...this is nothing at all different from last month.

The scalar amounts we're talking about seem to stun people, just further illustrating the fundamental lack of understanding of exponential math.

You SHOULD NOT be surprised by these amounts.  In another few years, they will be double this.  Simple compounding math.

Apr 27, 2010 8:22 PM

Look, man, there's no amount of cuts and taxes that can save this.

The debts of today cannot be paid by tomorrow's production.  It's as simple as that.

We are in the endgame and have been since the oil peak

Apr 27, 2010 8:24 PM

"our" money?

WTF about this is "our" money?  It's all fictional money.

The US lent money it didn't have to the IMF which will lend money it doesn't have.

The WHOLE THING is a house of cards; I marvel at the inertia that makes a FRN worth anything or any of these fuckin accounting computer entries afforded ANY respect by anyone when the whole thing is obviously a shell ponzi to anyone with a brain.

It may very well take a long time before the sheeple lose faith in the FRN; until then, we can go on droppin it like it's hot

Apr 27, 2010 8:35 PM

That's the dumbest thing I've ever heard and an idiotic TA chart.

You used 2 points to construct an ED???  Calling this an overthrow?  You use a MACD divergence on a strong up day?  Foolish

Apr 27, 2011 1:08 PM

Stop the humanoid, stop the intruder

Apr 27, 2011 1:20 PM

well it's known now that Underwear Bomber was permitted aboard due to the National Security waiver as well.  Mfer didn't even have a passport or a visa

Apr 27, 2011 1:22 PM

the meal is 10x the FRN cost of 30 years ago.

Apr 27, 2011 10:03 AM

Arnie can't "confirm" anything; all he can do is conjecture.

Apr 27, 2011 10:06 AM

I picked up stuff on stink bid on FlashCrash day...was a great buying opp

Apr 27, 2011 10:07 AM

Do these idiots think this "win the future" crap has ANY traction at all?  Like they think it's clever or sticky or something?  It's a joke and everyone sees it as not only an empty slogan but not a particularly catchy one

Apr 27, 2011 10:29 AM

what the fuck is your point?

Apr 27, 2011 10:35 AM

well, why didn't the press go after this 3 years ago?  Why now?

Apr 27, 2011 2:22 PM

just a paraphrase of Orwell and Goebbels

Apr 27, 2011 2:27 PM

Racism is a word invented by a marxist jew homosexual and pushed by the likes of Trotsky/Bronstein.  The clan built an entire advocacy machine around it.  It was originated to specifically be a particular affliction of solely non-jew whites.  So when a black says they cannot be racist, they are actually correct by the definition of the word as it was coined by its progenitors.

Consequently, it no longer means anything.  Anyone who doesn't give a black person exactly what they want when they want it, is a racist.  It's an empty word as it ALWAYS was.

Now it appears ANYONE is a terrorist who doesn't give the government what they want whenever they want it or who opposes a demagogue, or who dissents. 

Apr 27, 2011 3:09 PM

fuck me, and I was just checking call options on SLW yesterday...didn't pull the trigger

Apr 27, 2011 4:06 PM

gonna hafta lever to stay ahead of it- that IS the point.

The problem is that leverage can't create oil, so financial speculation will be (and has been) the only game left that can outrun the base inflation.  Real production is a loser on two fronts, one because it can't make even a meager yield (can't be levered), and 2 because the yields possible from leveraged speculation kill it.

This is a DIRECT consequence of a financial system built on debt.  In the early stages of exponential curves with disparate growth rates, it really makes no difference.  As debt compounds, however, speculation becomes more and more attractive from a pure ROI perspective.

I mean, think about it; you can lever up financially with very little "capital."  How much does it take to drill a real well or mine a real rock or build a real factory to manufacture a real widget?

Apr 27, 2011 8:08 AM

huh???  When the fuck did this ever happen in Argentina or Mexico?

Name the 40 or 50 countries.

Apr 27, 2011 8:11 AM

"so many countries"??  Name them.  Need cites.

Apr 27, 2011 8:16 AM

dude; the USSR COLLAPSED.

We are talking about COLLAPSE.

AFTER COLLAPSE, nobody took the USSR's ruble anymore.

Apr 27, 2011 8:19 AM

yes, oil should be higher in that scenario

Apr 27, 2011 8:26 AM

you're a retard.

I don't even carry paper anymore...I have plastic.

Gold is poor for trading, so are coins. 

There is nothing whatsoever dishonest about the FRN; everyone here knows what it is.

Apr 28, 2010 1:13 PM

Yep...seems to believe we can just "default" and everything will be fine.

Apr 28, 2010 1:14 PM

So if my kids spill kool aid all over the couch, I am actually afraid???  Learn somethin new every day around here

Apr 28, 2010 1:24 PM

Peak oil is going to shit all over your theory.

Nevermind that there isn't the production to support our expenditures as monetized.

Apr 28, 2010 1:25 PM

LOL.  Did you try that LAST TIME gold crossed $800?

There's not going to be any for sale.

Apr 28, 2010 1:27 PM

I think you are disgustingly off your rocker

Apr 28, 2010 1:29 PM

Everything is NOT going to fall the fuck apart like that!

Look, gdit the water and lights are still on in Argentina, and they stayed mostly on in Beirut.

JFC you guys w/ your Madmax fantasies.

Apr 28, 2010 10:10 AM

Dude's gonna get black bagged if he keeps this up.

The only thing stopping complete deflationary collapse is printing and Fed shenanigans.  The truth is that without the confidence racket that the FRN is, this nation is at ALL STOP.

Apr 28, 2010 10:13 AM

Was one of your friends Karl Douchinger?

Apr 28, 2010 10:18 AM

Look; it's really this simple.

The growth system is dead.  We can't grow, the Era is over.

So right now they are kicking the can with even more debt until and unless people lose total faith in the currency.  Then shit will implode overnight.

But there is no alternative.  Nobody wants to admit that Growth is over.  This is hailmary can-kicking and wishing that Deus Ex Machina will bail us out.

As long as confidence in the paper does not wane totally, they can extend and buy more time.  A massive, massive reset is coming in the way "things are done" and I don't see how wars don't erupt as a result.

Apr 28, 2010 2:30 PM

All the ratings cabal are belong to us.

So we continue speculative attack against the euro's weaker members.  There can be only one, Highlander.

Apr 28, 2010 2:33 PM

They have hedonic inflator metrics.  For example, when beef becomes too expensive, people will switch to Spam.  This means "deflation" because Spam is so cheap.  And when that becomes too costly, they switch to dog food, thus inflation is never a problem, just a hedonic adjustment.

People who choose to starve to death instead of eat because they cannot afford food are the best of all possible worlds for the CPI.

Apr 28, 2010 2:35 PM

Hoenig prefers death now to all this waiting around

Apr 28, 2010 2:35 PM

Do something useful with it before it becomes a barter item

Apr 28, 2010 2:41 PM

Barney Fag used some skim from these behemoths as his personal fucking slush fund for better than a decade.

He was INSTRUMENTAL in FNM/FRE becoming what they were.  Is it time for violence yet or does this come down the road a bit?

Apr 28, 2010 2:44 PM

Couldn't you just have paraphrased Goebbels' famous quote about the truth being the enemy of the State and spared us the novel? lol

Apr 28, 2010 2:46 PM

Do you honestly believe that the UST auctions are going off with record BTCs because there really is that amount of capital willing to "lend" to a sovereign with NPV entitlements of $100T?

The Fed closed the facilities, sure...look at their balance sheet.  It's because they BOUGHT all the gd'd securities that were lent against.

Apr 28, 2010 2:49 PM

It's good for heating the tea of people you hate

Apr 28, 2010 2:59 PM

Just GIVE THEM THE MONEY ALREADY...jfc

Apr 28, 2010 3:52 PM

They have a moral obligation to repay all their debts, with their organs if need be.

Only corporations, fatcats, and governments should ever default and only when it maximizes their financial benefit.

Apr 28, 2010 4:11 PM

lol

I am hardly one to be critical about writing novels around here.

Sometimes, though, brevity is the soul of wit!

Apr 28, 2010 4:17 PM

That is one group of people.  Then, there are the wilfully ignorant.  They know that what they know is likely untrue.  We in law call this constructive knowledge.  Meaning that they should know and to not know is negligent.

But anyhow, yes, there are tons of people who are frickin stupid and do not want to seek out the truth even if they could grasp it.

But there are a lot of those who shrug and just play along with the system.  In Athens, the people gave face value to copper coins despite their worth being far less than face.  It was a group acquiescence to fantasy.

We have that too.  So long as enough of us play pretend, there are no acute consequences.  Soon as someone breaks for the door, the stampede begins.  Herd dynamics are interesting.  Even in the face of clear and present danger, a herd may just stay put because everybody else is.

There is no such thing as truth anymore, there's only opinion.  And if one guy on TV says it is so, then it is "debatable" even if that guy says something provably false to anyone with a cursory exposure to science or engineering.

Apr 28, 2010 4:18 PM

double-clicked the Save lol

Apr 28, 2010 4:20 PM

B

I

N

G

fucking O

Been sayin that same thing for a few years now.  We rode an energy supply wave which has now inflected.  Technology needs energy too, everything does.  It is the thing that causeth to become.

Apr 28, 2010 4:23 PM

That's not such a problem because they actually need less demand because supply is declining.

Prices were going to go up anyhow.

Apr 28, 2010 4:29 PM

I'm open to data too...but I'm also very good at deductive analysis.

I *cannot* find a source of sufficient real capital to lend to the USG.  Just can't.  It's because it isn't out there and even if it were, who in their fking right mind would lend to the USG at <4% interest on a medium-duration note?  That's INSANE.

Our deficits are exploding, never even MIND the entitlements tidal wave that is now rushing up the beach.

We are inarguably bankrupt.  Our receipts are under our expenditures by around 50%.  We face an impending situation where interest expenses will be our largest budget item, yet there is actually trillions in free capital out there that people are willing to "invest" in the USTs?

I find that so absurdly improbable as to be of negligible real probability.  Therefore, the only alternative must be stealth QE of some kind.

Apr 28, 2010 8:06 AM

This is like how Bret Michaels' condition is "improving."

I love how every time things bounce on the cliff-ride down, everyone sees "improvement" as if really bad times cannot exist unless things go straight down unabated.

Apr 28, 2010 8:54 PM

Inclined to agree in principle...but sometimes when there is blood in the streets, it's time to run like hell lest your blood be next

Apr 28, 2010 8:58 PM

Was thinkin the same thing...more members of the Tribe empowered to fuck shit up.

Just another financial catastrophe with the Tribe's fingerprints all over it.  More Jew Confetti for us

Apr 28, 2010 9:01 PM

These doves have shotguns...and fangs

Apr 28, 2010 9:32 PM

Backup plan?  LOL

There IS no backup plan.

Remember, we're in a GROWTH economy.  We not only must replace lost oil BTUs but also supplement them with additional BTUs to support the requirement of growth economics.

Think about this:  the wars, the bailouts, the stimulus.  "We" could have spent all that on solar panels and windmills...PBMRs and whatever else.

OR...the government could have put subsidy dollars intended to bring next-generation solar tech to reality now, instead of for $1MM a panel on the Mars Rover.  The gov't is fine to let "the marketplace" decide on critical shit like this, but eager beaver to go fight wars and blow shit up.

WTF is all this Iraq tech going to do?!?!  It's POLICE STATE technology.  It has no fuckin future; it's not productive.  Diamond semiconductors, nanotech, all kinds of things that could be pushed down the road instead of fucking BANKS.

We needed to spend our inflation dollars on, you know, something that would generate a RETURN ON INVESTMENT, instead of just bullshit to paper over the banks.  Fuck, the economists have killed us all...

Apr 28, 2010 9:47 AM

The 50 states already got that deal.  It was the 787B stimulus

Apr 28, 2010 9:48 AM

Why only 110B??

Why not ELEVENTY HUNDRED BILLION?

Apr 28, 2010 9:51 AM

Well, hell, who does everybody think actually GOT all that money?

The gov isn't a real entity; it's people.  Behind every dollar of spending - or Euro or drachma - was a kleptocrat and a bribe.

Apr 28, 2011 1:11 PM

it depends upon the steepness of the depletion curve of oil, which is consumed while gold isn't.

In an n->infinity limit, the ratio goes to 0 as there is no oil left while gold is immutable

Apr 28, 2011 1:15 PM

people shouldn't shop there!

I don't.  How the fuck can I be the only one who is capable of resisting their smiley faced prices?  Is it because my smiley has a middle finger?

Apr 28, 2011 1:23 PM

WMT must have magic powers that forces shoppers to come....must be the smileys.

Otherwise, it is the leechfuck low class people who shop there instead of supporting local businesses who are to blame.

My fuckin dad shops at WMT and I insult him and not in a teasing manner for it; I'm serious.  I have gotten dragged into a WMT once or twice by him because he wants to buy something there and I insult the shoppers as I walk down the aisles..."YOU are outsourcing America."

Nobody can see beyond the end of the ME ME ME nose anymore.  I had this argument with some asshole coworkers in the past about WMT.  I said the same thing to them, you are outsourcing America, it is YOUR fault.  They asked me oh yeah well I'm sure you're wearing chinese stuff too.  Nope.  Then they STFU.  But it didn't change them.

Because in their mind they are entitled to cheap shit and they wouldn't pay extra to keep their own moms in business.

Apr 28, 2011 1:25 PM

no...link?

Apr 28, 2011 1:25 PM

you fuck shit damn ass cunt bitch.

if you actually junked someone then I guess I am actually serious

Apr 28, 2011 1:31 PM

that is about the most irrational conclusion you could have drawn from what I said.

BNW is in NO WAY a comparable book to F451.  They're not even the same THEME.

BNW is a study of the contest between happiness and "truth."  At its core it asks really just what the fuck truth IS.  Your notion that "we" are "better off" in caves eating gruel than "murdering our own team," is what I was aiming my point at, because this particular debate is at the CORE of BNW.

F451 is another dystopian censorship tome, along with 1984; why people relate them to BNW is beyond me.

I fear nothing...ok, maybe heights give me the willies.  But in the meantime, cut the armchair libtard psychobabble about how people who don't LIKE something MUST necessarily FEAR it.  I don't like what I don't like and I do not operate from a position of fear on anything.

Apr 28, 2011 1:32 PM

now call me a terrist or some other empty epithet.

Fuckin punk bitch is what you are

Apr 28, 2011 1:35 PM

Got a really big garden?

Got chickens and/or rabbits?

Got an orchard?

Got a well?

Got a nuclear plant upwind?

Then you might have none of those

Apr 28, 2011 1:37 PM

god, will you just shut the fuck UP already with this paranoid HAAAAARP shit?

Apr 28, 2011 1:41 PM

why, because I used the term bourgeoisie??

Apr 28, 2011 10:46 AM

take a look at the FX action against the BRL...must be some kind of intervention.  Was the same yesterday but saw a late pop in the cross.  Gold up sharply in reais

Apr 28, 2011 12:09 PM

clueless?  hmm...no, they're lying

but the lie has become so inculcated that they believe it.  Everyone has drunk the koolaid.

Apr 28, 2011 12:12 PM

nein, flak.  We already hit the deflationary collapse in 2008...as a result of the oil supply inflection.

We are going to face continuation of what we have now.

Oil will become very EXPENSIVE in terms of what we are accustomed to paying for it, that being trash paper and debtmoney.

Imagine if the US could not print petrodollars to get oil; you honestly believe we could run these gigantic trade imbalances?  Imagine a future where the US has to buy oil like every other country has to, with real production.

That is the "real" price of oil and it is going to rise. 

Debt is being discounted to reflect a future of contraction; our money is debt...this is an easy syllogism.

Apr 28, 2011 12:16 PM

this is already happening...export land model is ruthlessly destroying importable oil supplies.

Nations that don't "take care" of the indigenous population with cheap gas and growth will see revolutions.

Apr 28, 2011 12:21 PM

look deeper into that movie...set aside the multiracial "deepness" for a second, just pretend like you haven't been conditioned to see that as nirvana.

WTF were they fighting against?  A SHIT LIFE.  Of living in fucking caves eating gruel.  Who the fuck would want that?

I, to this day, do not GET the notion of why anyone would WANT to be unplugged!  There was no reason to...the truth?  WTF is the truth?

Instead of pursuing this deeper meme, the directors went off onto the diversity angle with legions of deep and noble fictional black heroes, and made Neo into no more than a construct for how to keep the Matrix humming.

The SMITH character was the only real being in the entire script.  He, alone, stood for something...he wanted to destroy everything because it fucking stank.  Cipher, also...fuck this shit, put me back in as a rockstar.

Apr 28, 2011 12:25 PM

BFD...WMT shoppers are hurting.

This was what I predicted.  Someone has to suffer and it is the lower class and the former middle class, who is downwardly mobile now.  They necessarily have less money to spend.

The gov't and TPTB cannot afford to lose the upper middle and lower upper classes, the engineers, doctors, lawyers, etc.  The bankster oligarchs are atop this pyramid, the filthy rich.  But beneath them are people who shop at TIF and WFMI, not WMT.  These are the people who can wrest political power, the nouvea riche or bourgeoisie, the trade classes.  They will be kept fed by the stock market as they are the main owners of 401ks as opposed to real production.  They are in essence junior partners to the real owners of production in that they agglomerate themselves into mutual funds and other vehicles to partner with the true elite rich.

The middle class and lower classes can essentially get fucked; everyone cannot be saved.

Apr 28, 2011 12:32 PM

mom & pops couldn't sell at wmt's prices.

WMT cankicked the reality of inflation for a long time by arbing chinese slaves.

Apr 28, 2011 12:33 PM

Reich hates white people...typical jew oligarch

Apr 28, 2011 12:39 PM

you can do an $gold:$wtic on stockcharts

It's been dead flat since QE.

Apr 28, 2011 12:44 PM

You need to read Brave New World and really *understand* it from a deep perspective.

Read chapter 17.  It is 1000x better than the fking Matrix.

Apr 28, 2011 4:22 PM

BBs suck...they have survived only this long bc of their legacy corporate EM function.  But their product portfolio is 2 generations behind the curve.

Apr 28, 2011 4:23 PM

uh...it seems like the winning move is to shove the navy up their ass like all those successful wars we prosecuted against them for failing to buy anything from us

Apr 28, 2011 4:24 PM

bullshit...the entire economy there is a fraud now.

Fraud is encouraged, along with IP theft and embezzlement.

But...but...they are playing CHESS while we play checkers, right?  They're the future.

China is fraud, Inc.

Apr 28, 2011 4:39 PM

Jeezus fking Christ...that is a worse acceptance rate than HARVARD

Apr 28, 2011 4:46 PM

All of you idiots- STOP BLAMING THE CHAIRSATAN for this.

WTF did you all think was going to be the eventual outcome of the trade deficits we've run for FORTY YEARS??

Our currency HAS TO DROP.  Trade flows MUST NORMALIZE.  There is no way around this; the center CANNOT hold any longer.

We consume but do not produce; the FX consequence of this is a decline in currency's relative value.

If we do what is recommended around here, default, wtf do you think the FRN is going to be worth?  Same bagle.

Apr 28, 2011 8:15 AM

yes, that is exactly why China is building ghost cities.

what, you bought into all this "Chinese play Go, Chinese think in centuries" bullshit?

Apr 29, 2010 8:21 AM

We very much have a singularly monoethnic narrative in this country, given the stranglehold that the Tribe has on both media and finance.

Shit doesn't get funded nor spoken about, the movies and shows don't get produced, unless groups of the Tribe agree on it.  Just wiki up Ashkenazim.  The entire group is genetically related enough to start having genetic diseases caused actually by inbreeding.

I recall what Bob Rubin said about Richard Cohen, something to the effect of that they'd never met, but when they did, he heard his father and saw his father in Cohen's voice and eyes and how familiar it was and how he knew implicitly because of this that they were "family."  Even though they are very distant relatives.  That is clan nepotism in action.

People in the US are so inculcated to hearing only jewish narratives that they don't even understand what anglosaxon norms are anymore.  We think this is "the west" whereas other europeans see us completely differently.  And we cannot seem to fathom how our nation creates frictions just the same as Israel does.

Apr 29, 2010 8:27 AM

Yes, but fascist Trotskyism is a jewish invention.  Marx's dad was jewish.  Must explain the fascination with the doctrine.  Trotsky was a jew as well.  He was born Lev Bronstein.

Most of the most eggregious examples of what we whiteys call race baiting, reverse racism, etc., things like the NAACP, are jewish inventions, along with all the "multiculturalism" they brought with them.

The SPLC agitates constantly against anything and everything white; it's run by jews as well.

Nevermind media and finance. 

Look, at what point will we call this clan nepotism for what it is?  Nobody has yet suggested another Reinhard, but would we tolerate monoethnicity and control by a tiny minority were it any other minority?

This type of nepotism leads to class and ethnic friction which leads to very dark places, as has been historically shown.  The group is looking out for and shepherding other members of the group; it's very clear.  America has been hijacked.

Apr 29, 2011 4:17 PM

nothing whatsoever about China's previous 20 or 30 years in ANY way suggests patience is their strong suit.

Apr 29, 2011 8:09 AM

COMEX is price fixing mechanism...I don't even know why they bother with this legacy function of warehousing.  They should leave that to real buyers and sellers.

Apr 29, 2011 8:16 AM

those ain't cheap...Rothschild only ponied up for a barony, but all those palaces sure said "duke" or at least "marquis" to the naked eye

Apr 29, 2011 8:17 AM

Fuck'em

Apr 29, 2011 9:33 AM

we've had since Fu1 two now where the shore power has been cut off by tornados and they've had to go to diesel.

I wonder if the NRC didn't force inspections and actual tests.  The difference between Fu1 and here is that our backup generators were able to work, otherwise we'd have been facing similar situations.  However, we are supposed to have adequate H2 venting capability.

No CAT5 is going that far north

Apr 29, 2011 9:36 AM

bbbut...Arnie Gunderson said that pool 4 was a molten fission pit

Apr 29, 2011 9:40 AM

I'm good for seems like at least 2 or 3 even if I post 2+2=4

Apr 29, 2011 9:41 AM

Icanhaz rally now?

Apr 29, 2011 9:44 AM

better get those dozers in there to carry off Kaddafi's 599s too

Apr 3, 2010 10:59 PM

They're already out there...saw a chinese company link that produced all manner of tungsten-cored fakes.  Big gold bricks, 1oz coins of various types.  The link was over on TF or here, I can't recally.

Apr 3, 2010 11:03 PM

Why were we on a gold standard then until the 1970s?

Apr 3, 2010 11:07 PM

Don't get me wrong but I like ALL real things versus paper.

I'd stockpile oil if it were compact.  If you think gold is "strategically insignificant," buy a metal with an industrial use, like platinum or rhodium.  JFC, this isn't hard.

Apr 3, 2010 11:08 PM

Fiat paper has intrinsic value?  WTF.  I have a $100 bill, it's a fuckin piece of cloth with ink on it.

I can't eat it.  I can't run my car on it.  So, therefore, like gold, it's a doorstop.

Apr 3, 2010 11:14 PM

Oil speculators...ROTFL.

I cannot believe you idiots.

Dude, C&C peaked in 2005.  Conventional C&C production isn't even close to that anymore.

Gold production peaked in 2000.  WTF is it with you idiots that you cannot understand simple fking supply and demand?

Apr 3, 2010 11:19 PM

Jewelry has no intrinsic value.

To some people, CARS have no value.

I laugh my ass off at the axiomatic proclamations around here about what DOES or DOES NOT have value.  LOL

Apr 3, 2010 11:23 AM

It CANNOT be stopped!

The real economy is no longer growing but credit MUST GROW.

Thus, the synthetic economy.

It's not actually gambling, it's a symptom of an underlying systemic flaw in the monetary system.

Apr 3, 2010 12:51 PM

All the gun nuts need to watch Dr. Zhivago.  Seriously.

These events have happened before.

Apr 3, 2010 5:46 PM

Either shit just blew up or else it's a misprint

Apr 3, 2011 11:05 PM

huh?  Aristarchan had disclosed that the NRC advised TEPCO to upgrade these reactors at least with hardened H2 venting systems as is mandatory here.  They refused.

How many other NRC advisories did they rebuff?  Maybe their arrogance is fatal.  It wasn't GE's fault that they had no plan for a systemic power outage.  They appear to have sat on their asses for nearly a day watching their reactor buildings get ready to blow up.  And when one blew, did they take any emergency remedial measures to stop the others?

They needed only a relatively meager DC power supply to keep this shit all running and as a POWER company, how the fuck could they not have been able to provide this within a 12 hour window?

Apr 3, 2011 11:09 PM

colonize Africa, improve gene pool

Apr 3, 2011 11:24 PM

what's the point of the tin and boron?

they seem to be coffin cornered here- they can't cool without irradiating the site beyond ability to work, and they can't stop cooling without risking further meltdown.

This is NOT chernobyl...there is no burning open pit in which to dump anything.  They have melted rods and piles of pellets probably in contained locations and uncontained ones.  If they have leaks in SFPs or reactors, additional cooling causes additional contamination.  Stopping cooling causes additional contamination (more meltdown and potential fire).

They have to plug leaks...the site can't be worked on until radiation levels decline as a result of not continuing to pump water through nuclear rods which then leaks out onto the floor.

Washing it all into the ocean may be the end-state though...

Apr 3, 2011 11:57 PM

nothing is insurmountable.

Just announce free chicken and waffles there and say that the fuel pellets will turn into a free plasma TV and you'll have the problem gone in no time

Apr 3, 2011 2:39 PM

your jealousy is unbecoming...you should fade away gracefully.

Nobody wants to be you.  You're not being imitated; you've been superseded.

I'm sure there's enough room for you to be part of my supporting cast.

Apr 3, 2011 2:40 PM

for which one?

for black vs white graduation rates, you can use google, very easily.

For crime rates, BJS keeps data; bear in mind they conflate hispanics and whites.  NYC makes a distinction.

Pick one you want sourced, and will grab you a cite.  The disease rates are from CDC, hate crimes and interracial violence are kept by DOJ/BJS. 

don't act like the data is hiding from you- you are hiding from it.

Apr 3, 2011 9:07 PM

moron...you think I can possibly grow enough food in a greenhouse?  What about my animals?  what about my groundwater?  What about my GROUND, which will dose me every time I step outside?

I hereby suggest every madmaxer have another bugout ranch in order to bugout to from his first bugout ranch.  And so forth.

Apr 3, 2011 9:21 PM

I never asked anybody to prove me wrong.

the data is at BJS.  If you actually need a link to it, and are incapable of finding it for yourself, by all means, go ahead and bleat more.

take a look at the Department of Justice document Criminal Victimization in the United States, 2005.

In Table 42, entitled "Personal crimes of violence, 2005, percent distribution of single-offender victimizations, based on race of victims, by type of crime and perceived race of offender," we learn that there were 111,590 white victims and 36,620 black victims of rape or sexual assault in 2005. (The number of rapes is not distinguished from those of sexual assaults; it is maddening that sexual assault, an ill-defined category that covers various types of criminal acts ranging from penetration to inappropriate touching, is conflated with the more specific crime of rape.) In the 111,590 cases in which the victim of rape or sexual assault was white, 44.5 percent of the offenders were white, and 33.6 percent of the offenders were black. In the 36,620 cases in which the victim of rape or sexual assault was black, 100 percent of the offenders were black, and 0.0 percent of the offenders were white. The table explains that 0.0 percent means that there were under 10 incidents nationally.

Apr 3, 2011 9:44 PM

recriticality in reactors should not cause neutron beam excursions...the reactors are built to operate with ongoing criticality in them.

Maybe SFPs are the source?

they need to immobilize all the rod materials to prevent runoff while spray cooling.  If there's a crack in a fuel pond, they will need to immobilize all the melted pellets, get enough water in for shielding, seal the crack, then fill the ponds.  This sounds like a troubling engineering problem

Apr 30, 2010 10:23 PM

oh the irony...an article about $600B monthly roll on Treasuries and then we have this article talking about the "derisk" trade being dollar-positive.

Apr 30, 2010 10:29 PM

Impossible? Hardly. With the miracle of modern digital image enhancement, everybody can look like a supermodel made of porcelain.  Just don't ever go out in public

Apr 30, 2010 10:31 AM

It's not easy to hit a CVN with a ballistic missile...China's "technology" is much ado about very little.

Apr 30, 2010 10:32 AM

Can't trick the "consumer" into thinking they have a paycheck that they don't actually have.

Apr 30, 2010 10:35 AM

Krasting is counting "interest" on the SSTF holdings as income.  That's an illusion.  Interest is just more money owed the SSTF by the same damned gov't.

Should just compare outlays to payroll taxes for the real picture.  It's worse.  Cashflow for SSTF is all that matters.

Apr 30, 2010 10:37 AM

Because they are DEPENDANT upon those SS TAXES to keep coming in to fund operations!

Sure, they can wipe out all their obligations by just not paying them, but they need the revenue from those programs.

SS has hidden spectacularly massive deficits for decades and nobody said shit about it.  Even the vaunted Clitton "surpluses" were ENTIRELY SS and then the Congress and Bill got together at EOY to spend all of them.  TreasuryDirect says the national debt never went down during the surplus years.

Apr 30, 2010 10:39 AM

Um...England defeated Spain navy-on-navy.

These hypersonic cruise missiles are a lot of hype and not something the Navy is unprepared for.

Apr 30, 2010 10:41 AM

Huh?  Those who are levered, iow, the rich, go broke in deflation, and all of the banks.

People think banks have money?  LOL...they are the most levered institutions on the planet along with governments.  Look at the deflation of 2008, we were days away from every bank everywhere going completely tits up.

WTF is money?  Who has money?  Everyone has bank accounts that are worthless in a deflationary crash because the bank fails.

Apr 30, 2010 10:51 AM

Champagne supernova is my guess.

Growth has turned to contraction...there is no theory, school, or set of equations that make any sense to the debtpeddlers at this point because we have left Kansas.

Apr 30, 2010 10:52 AM

At what point does mass Point of Recognition arrive that the oil peak means that the Age of Growth is over?

The future cannot repay today's debts.

I have to believe that somebody besides a few of us was perspicacious enough to see this...and yet this debtmoney is still afforded confidence and respect.  So, why not just print it?  I think mass inertia and ostrich behavior should carry us through...

Apr 30, 2010 10:59 AM

well...it gets worse than that.  Such a system as you describe would have a longterm stability.

What happens is that the bankers begin lending gold they don't even possess.  The Sterling Bill was the lynchpin of British Imperial Power for centuries based upon this.

They ran inflation bubbles all throughout the east and latin america long before this crisis or the .com bubble ever "struck" anyone as the first bubble they'd ever seen.  People really need to review history.  Pump & dump has been used habitually by the major powers on the developing world with unbacked debtmoney for a long, long time.

There were so many bubbles after the BOE's inception that it wasn't funny.  The Sterling Bill was a truly revolutionary invention.  It was allowed to impersonate gold all over the world.

Apr 30, 2010 11:10 AM

Look at the production curve...either in aggregate or nation-by-nation.

THERE is your Peak theory, right there.

Despite a freaking 300 or 400% runup in the price, NO NEW SUPPLY.  Right here we have actual production figures BITCH SLAPPING a fundamental "axiom" of all economics theory right in the face before issuing an institutional beatdown to it with dimension lumber.

The economists were WRONG.  Higher prices do not cause more supply; they only do when they CAN.  Economists DID NOT accept and DO NOT RECOGNIZE that supply rates can peak!  This shit to them is TOTALLY unforseen.  The reason for this is because their stupid theories and schools were hashed out 100 years ago when supplies could grow YoY seemingly forever.  Hubbert didn't release his Peak Theory in oil until the 1950s and he was laughed at for forecasting something coming to the USA 20 years hence.

The economists assume ever-increasing supply and they are in charge; they have the ears of the "leadership" and they assume rosy scenarios.

At least with gold, all the supply ever mined is still here; with oil, every last barrel has been burnt.  This should serve as a warning to peak deniers like Douchinger because gold's supply data is better-developed than oil's.

Apr 30, 2010 11:53 AM

I look at it like this:  the world has been on ZIRP since Japan hit the supply-side wall in the late 80s.

Against that backdrop, and steadily rising price trends, I can name several commodities for which there have been peak supply rates followed by declines and no amount of repricing has affected this.  Peak is a real phenomenon and no amount of monetary crap can undo it.  Being on or off the gold standard changes nothing.

The US maintained the BW gold standard until domestic supply peaked.  We're down 40% in production since then.  Free money, gold, none of this matters.  The earth's ability to produce or deliver the commodity is all that is relevant.

Apr 30, 2010 12:06 PM

DROP THE BOMB

Apr 30, 2010 12:11 PM

Why should anyone care?!??

It's a FX swap line.  There's a dollar liquidity crunch in progress as the EU delevers.

If we force them to bid for dollars on the open market, it will drive the DXY through the roof and that will blow all muffuggin shit up

Apr 30, 2010 3:31 PM

DC CityPaper called him Eric "Place" Holder during his time here as a city and US Attorney.

The guy is a total fuckin joke and a crony/associate/fellow black of Barry O.

Apr 30, 2010 3:34 PM

I shorted the hell out of WM.  Was my first real short and how I built what became a mighty stake lol

Good to be doing God's Work with Goldman for a change

Apr 30, 2010 4:06 PM

Yeah, I think it was Waco?

Either way they got the bad guys at Ruby Ridge...shot that unarmed pregnant woman right through the head.  She was probably an "enemy combatant."

Apr 30, 2010 4:07 PM

Long as that target ain't deez nuts

Apr 30, 2011 8:00 AM

Needed to be Iridium, IDIOTS but IE9 wouldn't let me post till I clicked Compatibility View lol

Apr 30, 2011 8:04 AM

why would you CARE about any of this race baiting bullshit?

You know that this notion of "racism" was invented like a century ago?

Why does anyone white feel the need to defend themselves against what was ALWAYS a meritless and irrelevant ad hominem?

Apr 4, 2011 1:13 PM

we're going to ram into the overhead supply curve again as it declines.  Crash, then repeat.

Apr 4, 2011 1:26 PM

huh?  we have an entire MONTH devoted to celebrating black people for things they didn't really do.  An entire entertainment industry dedicated to propagating images of them that aren't representative, and a news media that won't disclose the race of a criminal if they happen to be black (speak no evil).

And Obama is rich as shit...wtf are you talking about?

Apr 4, 2011 12:03 AM

because they were all shredded?

Apr 4, 2011 12:46 PM

I can synopsize the IMF paper:

GET BACK ON YOUR WHEELS HAMSTERS!  RUN HARDER

Apr 4, 2011 2:05 PM

I called him the "BankermanChurian Candidate" a few years ago.

Apr 4, 2011 2:28 PM

for shits and giggles, which countries were the rapists from?

Apr 4, 2011 2:28 PM

...proving the NEED for France to get that 2nd nuclear carrier

Apr 4, 2011 3:06 PM

I've thought about it but never been asked

Apr 4, 2011 3:08 PM

unconventional oil has a massive extra energy investment, aka lower EROI, aka it is to a large extent a translation of one form of energy for another.  You have to invest significant heat to get tarsands made into synthetic crude.

The growth in production since C&C peaked in 05/06 has been leveraging NG into oil, albeit at positive EROIs.

Apr 4, 2011 3:12 PM

as has been explained, Cushing is largely irrelevant these days (WTI)

Apr 4, 2011 3:19 PM

the last year may have made a new peak in production.  Need to see this year's data to know whether it was an aberration

Apr 4, 2011 3:23 PM

SPLC is jew-run and funded

Apr 4, 2011 4:45 PM

Debt IS cash, nigga

Well ain't it???

Apr 4, 2011 4:49 PM

3.7 is a fine yield for a chip tech stock

Apr 4, 2011 5:41 PM

how about get our troops the fuck out of there?

Apr 4, 2011 5:48 PM

yeah there is something wrong with it- it's disgusting.

But that dumb bitch in the black dress really sure was a watercarrier for the administration; her bias was totally obvious

Apr 5, 2010 1:04 PM

What a fucking pig you are, damn.

Maybe someone will glass your city and your family, asshole

Apr 5, 2010 1:36 PM

Deplorable.

Any excuse to light people up with a 30mm cannon...oops, I mean "service targets with delivery systems."

When the command tells them you are the enemy, you too will be on Candid Camera.

Apr 5, 2010 12:34 PM

Gold and oil are in supply decline.

What you're seeing in pricing is a reflection of crumbling faith in fiat and credit dollars.

Demand has been artificially driven higher by an inherent loss in value of the currency.  This is *not* reflected in the DXY or the long bond.  But, there are many now who are already discounting ANY paper instruments based upon the presumption of a future of growth.

It is important never to forget that a dollar is more than a currency, but rather a debt instrument relying on a particular set of fundamental macroeconomic assumptions for it to have inherent systemic feasibility as an ongoing proposition.

Apr 5, 2010 12:36 PM

What happens when Credit can no longer inflate?

Your creditmoney collapses as an institution.  What is its value then?

What are the value of promises to pay in the future that cannot be kept?  There is your dollar right there.

Apr 5, 2010 12:41 PM

Wrong.

Every massive inflation featured high unemployment - ALL of them.  That creates the condition for the devaluation.

You guys cannot see the forest for the trees...I ask you, what is the VALUE of a dollar when credit cannot and will not grow?

Gold and oil are discounting a drop in the value of the dollar.  I submit that the dollar is doomed as a forward proposition simply because credit ISN'T growing and will not grow.

All of this relentless credit deflation yet the dollar prices of commodities all across the board are rising.  Why is the Yen POG at all-time highs?  The Euro POG?  What is gold discounting in the Euro?  Collapse!  Invalidity as a fundamental institution.

You deflationists are *correctly* pointing out that we are facing a massive credit collapse, yet you cling to the debtpaper.  The dollar is a promissory note, ok?  It has no special powers because of the ink printed on it; it's just a debt instrument frankly indistinguishable from a lot of others.

When nobody will lend the US Gov't any dollars other than the Fed, what is the value of the FRN?

Apr 5, 2010 12:47 PM

Sigh...why do you people retreat to your gd useless monetarist definitions of inflation and deflation!??!?

Why not just argue over how many angels dance on your pinheads?

What matters to PEOPLE is what the PRICE is, in terms of hours of my labor, to buy something.  Nobody gives two shits about monetarist M3s or other credit metrics.  What matters is the REAL price of eggs, the REAL price of oil, and the REAL price of all the other REAL things out there.

Do I give a shit if credit collapses to ZERO if the REAL price of oil blows sky high in the notes I get paid as wages?

You monetarists exist in a vacuum which PRESUMES the viability of the money that you analyze.  I will say this again: the dollar and debt in the aggregate are facing an EXISTENTIAL crisis.  Therefore, those who analyze the water INSIDE the fishtank and ignore that the tank has a large sledgehammer swinging toward it, are kind of missing the point.

Apr 5, 2010 4:21 PM

Douchinger can't ban everybody who argues with your bullshit monetarist deflation priceless fiat dollars case here, bud.

What happens to Japan?  POG in Yen at or near highs...that's what, mfer.

Japan is an exercise in coming sovereign DEFAULT.  Go ahead and stockpile the notes of bankrupt states chanting the TF meme that wages must drive inflation.

Apr 5, 2010 4:22 PM

Apr 5, 2010 4:27 PM

Fine...you send me something in return that I want.

My FRNs buy 50% less oil than they did last year, bud.  I'm not happy about my priceless FRNs.

CYR comes from the TF school of Douchinger suckups who can't trust their own lyin eyes on what the almighty fuckin MARKET is telling them about fiat paper and debt!

They're as bad as the ZH goldbugs to whom every single dollar price drop in the POG is MANIPULATION.

For the TF Douchingites, every rise in the POG is MANIPULATION (by speculators).

Oil CAN'T be in supply decline, Gold CAN'T be in supply decline...it's all "speculators," just like the fuckin price of Greek bonds!  Peak oil doesn't exist, it's all just MANIPULATION and scheming by people who outwardly appear to be incompetent. 

Apr 5, 2010 4:36 PM

CREDIT INFLATION/DEFLATION WHEN DEBT IN THE AGGREGATE IS FACING AN EXISTENTIAL CRISIS IS MEANINGLESS.

Got it?  I wrote it in all caps for you.

The creditmoney system is threatening to self-immolate in the face of REALITY, which is a future of DECLINING production, credit demand, etc.!  OK?

The "remedy" to this from a monetary perspective is to PRINT.  This will not fix the economy because REAL things are not dependent upon fictions like credit and fiat paper to happen.

Prices are rising across the board and people keep bleating about credit contraction and claiming it's fucking SPECULATORS and MANIPULATION all across the board.

HORSESHIT.

It is a LEGITIMATE DISCOUNTING of the VALUE of MONEY, which in our system = debt!  It is a recognition that DEBT promises SHOULD be discounted.

Inflation is NOT WHAT YOU SAY IT IS.

Inflation is, as I defined it to the class in highschool, a decrease in the value of money with respect to goods and services. NOTHING ELSE.

Credit and money supply inflations DRIVE that definition of inflation as outputs in the real world.

Currency, money, DEBT, are supply and demand instruments.  If there is LITTLE demand for debt (money) then why should we be surprised that real goods priced in debt have gone UP in apparent price?

I am telling you and CYR and have told the Douchingites each time till I got banned that your lying eyes are not really lying.  Your theories are.

Apr 5, 2010 5:15 PM

Take a look at that Wikileaks FOIA video right here on ZH.

Do YOU wanna fight that shit?  I'd personally rather leave and go to a country not infested by the almighty dollar.

Just think, when the militias stir up some shit and a couple cops get killed, they will bring the jackboot down HARD.  If you want to be standing in a crowd holding a "weapon" when an Apache is circling, and end up on a future FOIA disclosure, by all means.

I'd rather cash everything out and move.

Apr 5, 2010 5:18 PM

Look at what violence is permitted to happen, though.

Any violence that poses a legitimate threat to governance is destroyed.  Random "minority" rioting?  They let that proceed and maybe disarm the populace before and during and after.

So if a bunch of white people start rioting, expect tanks.  And they will shoot.  And if the cops get shot, they'll call the military and they will shoot too.  All their commanders have to do is finger YOU as the enemy and they will kill you.  They will send 30mm ordnance onto you and a group of photographers and laugh about it and hope you get up so they can shoot you again.

Apr 5, 2010 9:13 PM

Absolutely man.  Feel the same way.

The love of money is the root of all evil...we just chase it here, like hamsters on a wheel.

Apr 5, 2011 12:28 AM

well, we all KNEW that the UE headline rate was going to decline as the waves of 2008ers started to drop off the rolls.  That is happening now and expect them to relentlessly drive the numbers toward that goal because the reelection campaign of The One has commenced

Apr 5, 2011 12:35 AM

so we should have compulsory sterilization then?

Apr 5, 2011 2:38 PM

the whole south seas and other global bubbles in this period are what the EW kooks refer to as a primary wave with what followed, mini depression, global revolutions etc., as the corrective retrace.

The monetary shenanigans in the 1700s were enormous, a lot of macro trends colliding at that time, aristocracies, revolutions, VOC, all of it.

Apr 5, 2011 9:21 AM

ALL of this likely because they refused the NRC's recommendation of hardened H2 venting systems and were incapable of airlifting backup generation within a nearly ONE DAY window

Apr 5, 2011 9:38 AM

I pretty much agree with this.  They are going to have to let the cores melt in a controlled manner, even if it means containment breach (assuming that hasn't already happened).

Their goal of cooling things is simply causing massive radiation release because there are leaks and cracks now all over.  At this point it is going to have to be lead and sand and boron or maybe tin instead of lead.  I still think the problem is with the SFRs.  They are going to have to end up creating radioactive lava just to *immobilize* the waste.

There appears no hope to actually "fix" anything and I have no clue why they still seem to act as if that is a possibility.  Pumping water through leaky cores and SFPs makes it impossible to access the reactors to make ANY repairs.  And not cooling these things leads to melts and fires and breaches and even worse rates of contamination dispersion.   Clear catch .22.

Get a crane in there with some kind of means by which it can lift the roof off of the SFPs.  Dump in lead, boron, sand.  As they exhaust potential tools which can plug the cracks and stop the flow of contaminated water, they are going to end up having to solidfy and immobilize the fuel.  This is the point of no return.

Apr 5, 2011 9:44 AM

I have a very strong suspicion that the reason the problem looks intractable is because it actually is.

They face the devil of fire and uncontrolled meltdown on one side and the deep blue sea of continued contaminated water leakage on the other.  There is no way out through conventional means.

It's pretty clear that the structures containing nuclear fuel have immense leaks now; they cannot contain water.  Every drop sprayed becomes a contaminant foreclosing the possibility of getting workers in to fix anything.  How can someone fix a leak when what's flowing out of that leak is highly radioactive?

Apr 5, 2011 9:51 AM

bbbbut...bbbbut...he's been on TV!!!!!

I wonder how many bans he dished out for those who even questioned the certainty of his claims.

I'd never go out on a limb like that where credibility is concerned.  There was always the possibility here of serious radiation release.

It's been deductively clear for some time now that the coolant loops in both the reactors and SFPs are open.  Without a closed cooling loop, there is no such thing as a stable situation.

Apr 6, 2010 11:16 PM

Big game of sovereign-level chicken; this is only the beginning.

The edges are fraying bigtime.  WTF is in it for Greece to have this magical, special "funding" we keep hearing they'll lose?

WTF is the IMF going to do other than shove the debt up their asses?  The pensions are getting cut either way, and austerity is coming.  The only question is do you sell out your national assets to the bankers or do you tell them to EAT IT.

For Greece?  They should say what Iceland said:  fuck you.  Bring the fucking overlevered banks down too.  This inflation pump and dump is as old as the Bank of England itself.  They used the Sterling Bill as a weapon of imperial war for centuries.

The banks lent "Greece" money the banks themselves never had via the innovation of fractional reserve.  So why should they pay it back at all?  Everyone should be asking themselves, if a goldsmith gives you a paper loan and he never had the specie backing it, do you *really* owe his ass repayment?

The terms are "give us your islands" and you other national assets in exchange for the fact that the fucking banks that kited the checks and invented the credit money happen to be sited in OUR countries.  Fuck you Germany, fuck you France, fuck you United States, fuck you Goldman Sachs.

Apr 6, 2010 12:03 AM

Just fuckin DEFAULT already?  JFC.

Greece is playing chicken with the Euro.  It's like bein in the wayback seat in the van and throwing shit at the driver.  Greece has some leverage to guide this over a cliff.

Apr 6, 2010 12:13 AM

Time to borrow euros and long gold?  lol

The predatory action has moved to the sovereign phase now.

I marvel that the "banks" think they're entitled to be paid back money they lent that they never actually had.  All because they are "special" by virtue of being "authorized" to engage in fractional lending scams.

Fractional lending is immoral when done by for-profit actors

Apr 6, 2011 10:08 AM

I have 39.71 as my last...

The weakening on the Yen has just been freaking RELENTLESS.  The AUD is up to 1.04, Euro to 1.43, CAD nearly 1.04, BRL at 1.6; appears to be some massive effort to cheapen both Yen and USD.

So much for the "euro parity" traders.

At least this is a heads up for real black swans; the response by policymakers will be to ruthlessly cheapen the currency in response to nearly every hiccup.  Inflation is the only game that they know.

Apr 6, 2011 4:15 PM

c'mon the fuckin Euros need an excuse to print too...Japs are and the US is.  They feel left out

Apr 6, 2011 6:18 PM

how do you propose the banks come up with the money to pay this interest you think you're entitled to?

Apr 6, 2011 6:28 PM

technology will just save us right on cue...or are you becoming a nonbeliever?

Apr 7, 2010 1:55 PM

All the EVERYTHING is gone, guys.

Do you REALLY believe that OPEC actually cut production or is it simply more plausible that they peaked?  Their reserves are vastly overstated, so is their historical production.

In ponzi math, 9 real = 12 claimed.  Same as gold and everything else.  If you can't believe your lyin eyes, not my fault.

All the trust funds, all the promises...all the real shit, looted.  Bankster clan members have been selling shit they didn't own for centuries.  Hell the entire INSTITUTION of banking is lending something you don't even have against someone else's REAL collateral that they do have and finding a way to take possession of it.

The ULTIMATE con.

Apr 7, 2010 1:59 PM

He didn't say it was "the Jews," he said those who did it were jewish.  The latter is a factual statement.

Members of the Tribe have been running scams like this since they started making their surnames derivatives of precious gems and metals.

Apr 7, 2010 10:01 AM

They won't sell the Greek debt...why would they?

The whole POINT is to force Greece to accept bankster-friendly austerity, trading the worthless debtpaper lent by banks that never actually had any capital for real productive assets and real estate.

Anything that does not jibe with that model will be rejected.

Boo hoo Greece, we couldn't move your debt unless you accept debt slavery.  Greece and Iceland are the same phenomenon as gold and oil - a move from paper fiction assets lent by banks that never had the capital to lend into real assets.

I'm gonna go out on a limb and say that NO solution will be ratified for a debt collapsed state such as Ireland, Greece, or Iceland, or any future ones, that does NOT include trading of paper claims for real assets.  Yes, this shit is Versailles Treaty stuff and will eventually lead to unrest and war.

The most grotesque part of this all is that the money was lent into these nations in order to turn profits, but it was created from thin air by the banks.  Banks today have no nexus to reality; everything on their books, how they operate, the "money" they pretend to invent, is all a fiction.

Despite the paperbulls objections, you cannot divorce money from reality like this for an indefinite time before money ITSELF (and because it is all debt, that too) loses its corporeality.

Apr 7, 2010 10:11 AM

Why the hell is Greece seeking MORE money?

Fuck, CHARTER A BANK and lend it to yourself!!!

The "money" ostensibly lent by these major banks in the banskter West NEVER EXISTED.  They spun it out of the ether as an ACCOUNTING ENTRY.

I am continually amazed that people let numbers on a piece of paper TELL THEM that their life is over.  WTF, is that credit card balance going to jump off the page and physically strangle you?  It's a freaking ABSTRACTION; it has NO corporeal form.

The West figured this out; just create money if you don't have it.  Fuck "international finance."  ANYone can run a credit bubble or a fractional scam or invent debtmoney out of thin air.

The TRICK of the West and the banking Clan has been to convince people to REPAY the fictional paper with real assets.

Imagine you are a goldsmith with NO gold.  That's a major bank of today.  NO assets.  Yet you can lend to infinity without regard to what YOU have.  You get to invent money in the form of debt obligations.  Why should ANYONE take your notes seriously?  Why does anyone take the FRN seriously at this point?  There's no inherent, mandatory nexus to reality implicit therein.

So our "goldsmith" who actually doesn't smith gold and has none, makes loans that the rubes in the village treat as having real worth.  Then, for whatever reason, they default bc the ponzi ends.  You HONESTLY mean to tell me that people are SO STUPID that they will GIVE this bankster all of their REAL property, their daughters, their cattle, and whatever else the "loan" was collateralized with?!??!  That's not freaking "banking," that's outright FRAUD.  You get a CONMAN who convinces people to treat fictional paper as real then he ends up owning the entire village and having everyone as a debt serf??

Lemme ask someone something:  wtf is the BANK'S side of the loan collateralized with??  They have no collateral, no reserves, no assets, a negative worth...yet they continue to lend and demand interest.

Apr 7, 2010 12:04 AM

LOL...higher rates will bring a bid in fixed income?

No.  They'll crush the sovereign selling them.  We cannot afford to repay our debts at a 0% coupon, much less rising rates.

Rates blowing out means deflationary flight of capital.  Look at the US's fiscal and funding picture.  Would you be less or more inclined to lend them your money at a higher rate knowing that they had that much more interest to have to cough up?

Interest rates are balancing on a knife edge.  Once they go up, they BLOW up.  This is why I'm a QEx believer...there is no possible way the US can fund at higher rates; we're struggling enough as it is at these rockbottom coupons.

Apr 7, 2010 2:25 PM

It's easy to buy 10kbpd of paper oil per day but incredibly hard at this point to lock up a REAL supply of that amount.

Apr 7, 2010 2:27 PM

You just imagine you have it.

Then you lend against it versus collateral.  Then you get the obligor to default.  Then you take possession of his shit.  Then you unimagine you had the extra gold.

Apr 7, 2010 2:31 PM

High estimate??

You're aware gold production peaked in 2000, right?

Production has fallen since...inexorably.

Apr 7, 2010 2:37 PM

Uh...Pakistan already has the Bomb.  They are muslim.

PRK has it as well...haven't used one.  Iran will be no different.

Apr 7, 2010 2:42 PM

Crash the Euro to drive money into bonds

Apr 7, 2010 2:50 PM

On another note, as the market melts higher and especially gold rallies, Douchinger locks down TF with increasing bitch PMS frequency...ROTFL.

Like I am gonna PAY HIM to read his drivel and listen to the deflationist drone of his cult. 

Apr 7, 2010 5:04 PM

FUCK YOU DURDEN...the government NEVER LIES.

Apr 7, 2010 9:51 AM

The best part of the meltup is how Douchinger is now locking TF almost every week.  Got to be frustrating to be a deflationist short and doing all this TA jibber jabber and especially hating gold.  One of his "gold star" peeps is an acquaintance of mine; waiting for a 9 handle on gold...yeah, good luck with that.

Apr 7, 2011 10:44 PM

what a moron bitch...cheapening the dollar makes GDP go up?!

Yeah, you dumb fat cunt and measuring your weight in KILOS makes it go down!

Oh but wait, you still stay the same weight, it's just measured in different units.

Apr 7, 2011 11:21 AM

yes; they totally outmaneuvered Nabucco/EU.

The Georgia war was because the only route out of the caspian that does not go through Russia or Iran is....Georgia.

Things are easy to figure out if you look at a map

Apr 7, 2011 11:24 AM

attacking his oil infrastructure???  Why, that's basically an attack against the West, isn't it?

Apr 7, 2011 11:26 PM

PLAN couldn't succeed in an amphibious invasion of Hong Kong, much less Taiwan

Apr 7, 2011 11:29 AM

UCB's rainwater isotope analysis is very bearish for apocalyptics.  Rad levels declining markedly across the board for days now.

Apr 7, 2011 11:36 PM

doesn't even matter bc they can't do much of shit while they're up there.  The 29Ks and whatnot can fire the Brahmos I guess, but that's about it; antishipping and limited target strikes, air superiority only.

Tough to do against a decent airforce and no capability to really strike ground targets=no air superiority, bye bye air wing.  So if you think of it that way, these are defensive assets at most; they can sink ships and intercept carrier-borne aircraft is about it.

Maybe offensive against tankers and you can splash Harriers...against de Gaulle or a Nimitz, forget it.  Splash, sink, bomb.  A floating helo platform is scary to pissant nations.  If they have real jets, they're unfazed by it.

The sheer firepower the big CATOBAR carriers bring to any engagement is awesome.

Apr 7, 2011 11:44 PM

sure...but what happens to shipping and supplies when a CBG is out there sinking all your boats?

You don't have a navy anymore if a carrier shows up.  India's ancient Viraat simply dominated against Pakistan.  An antiquated harrier carrier versus surface shipping of any kind is a turkey shoot.

China's position is precarious in that any nation with projected air power can strangle their shipping.  Sure, you cannot invade a nation from a carrier if they have a competent airforce, but that's just not the point.

de Gaulle can impose its will against Libya and pretty much any 3rd world country, as can our CVNs.

As for laser-guided bombs, how the fuck are you going to get your planes near any of these carriers?  The cruisers surrounding it will light you the hell up with SAMs from outside the range you can hit the carrier even with something like a Brahmos.  And the fleet defense aircraft will be patrolling an even wider radius. 

And your subs expecting to sneak up on a carrier through the barrage of wartime ASW...forget it.

Apr 7, 2011 11:51 PM

dollar is getting blowtorched/monkeyhammered....wow.

Big move for the overnight

Apr 7, 2011 11:54 PM

seriously, are you really actually a cute young chick who is a PM bug?  Do you own a unicorn?

Apr 7, 2011 2:32 PM

Judaism:  the religion of tolerance and peace...

Apr 7, 2011 2:37 PM

what I find funny is how some of the biggest opponents to the concept of Peak Oil are the same ones often most hysterical about the nuclear accident in Fukushima.

WTF are we supposed to do now??  For peak deniers, nukes were our ONLY TRANSITION STRATEGY.

There IS NOTHING ELSE right now that can even HOPE to provide "power" (even assuming we had the capacity to convert that electricity into liquid fuel)

Apr 7, 2011 2:40 PM

bob, STFU...you are on the wrong side of this one too.

Peak was CALLED 20 years before it happened here.

Do the damned research.  Accept what I and Flak are saying.  Oil is not an infinite resource and the rate at which it is produced cannot grow forever. 

Apr 7, 2011 2:41 PM

not a fucking bit.

Do you actually think that their process of drilling 3 miles down is CHEAP?

WTF do you think happens to production like COS with their breakeven of $39/bbl if the oil price went to $30.  It gets SHUT IN.

Apr 7, 2011 2:44 PM

why the fuck did Mexico peak in 2004?

Why did the UK and Indonesia both peak around 1999?

Why has Burgan peaked (and Kuwait)?

Why are the VAST MAJORITY of oil-producing nations in production decline?

Fucking environmental regulations?!?  Get your head out of your ass bob.  You are one who "can see" so you're expected to be smarter than this.

Apr 7, 2011 3:29 PM

yes, let's start out with the OBSERVATION that the perpetual ponzi growth society has been astoundingly GREAT for the upper crust and then jump to the conclusion that they want to kill it.

FOR WHAT?  This makes NO FUCKING SENSE whatsoever!

What fucking enterprise WILLINGLY sells less product than they can?  Why in the hell would "TPTB" want to DESTROY the system of perpetual growth that has made them masters of the world?!??

Apr 7, 2011 3:31 PM

"bitch."  "Deal with it bitch"

Apr 7, 2011 3:40 PM

Also very important to look at Mexico.

Its future (or now) is UK's chart.

Production peak against level or rising consumption and you see a DRAMATIC decline in exportable oil.  As a gigantic net importer, the US (like all importers) is critically dependent upon the availability of oil for export (a surplus between production and consumption in oil producing nations).

It may come to having to force steep consumption declines in nations like Mexico.  I'll leave it to your imagination as to how that would be accomplished.

Apr 7, 2011 3:43 PM

Listen you retarded jackfuck...PEAK OIL for the TRILLIONTH time does NOT MEAN THE WORLD IS RUNNING OUT OF FUCKING OIL.

It means that PRODUCTION of oil is NO LONGER GROWING IN RATE.

Apr 7, 2011 3:46 PM

SURE I WAS, MORON.

I was buying COSWF hand over fucking fist when the price of oil was below their cost of production!

And I was having PO arguments weekly with idiots like you.

And here we are with the price spiking again as demand recovers but supply doesn't.

Why don't you drill in your head for oil, dipshit?

Apr 7, 2011 3:46 PM

it's what's between his ears

Apr 7, 2011 3:51 PM

i'm drawing a blank on those whacked out Christians...who were they again?

Asking because i am tired of the equivalence bullshit

Apr 7, 2011 3:55 PM

there was this Jesus guy...

Apr 7, 2011 4:35 PM

so you believe you can just dismiss all data offhand?

What the fuck data do YOU have (i.e., evidence) that there is some massive conspiracy?

That's what I thought.  Your argument is fail.

Apr 7, 2011 4:37 PM

globally?  IT WOULDN'T MAKE A FUCKING BIT OF DIFFERENCE.

Those resources are relatively trivial of thcompared to the overall consumption picture.  You have absolutely no clue about any of this, what the sizes of the resources are, or their expected rates of production.

So shut your fuckin dumbass hole

Apr 7, 2011 4:38 PM

rates are declining because oil production has achieved peaks there.  It's a geological phenomenon

Apr 7, 2011 4:46 PM

people are fucking stupid.

They will not contest that growth in oil production can't go on forever.  Nor will they argue that oil is infinite in quantity.

Just NOT NOW.  Not in MY LIFETIME.  So, they persist in a state of denial because it just can't be that we will be the ones to cross this epoch.  Please, let it be a future generation.

Everyone implicitly knows that the world runs on oil and a scarcity in that product or even a failure to grow its availability will be incredibly disruptive.  So they invent psychological devices to permit themselves to remain in denial.  This isn't even dissonance; it's straight out self-delusion.

Apr 7, 2011 4:53 PM

Need to see Areva doc; won't take his word for it.

Fuel pool crack was the biggest worry...a total coffin corner.

That said, UCB is showing markedly declining rad levels across the entire isotope spectrum.

Apr 7, 2011 4:55 PM

tell her you're going to buy yourselves a younger woman as a companion

Apr 7, 2011 5:49 PM

I will explain below

Apr 7, 2011 6:09 PM

ok...the Chinese acquired the rust bucket Varyag with the promise that it would never be deployed to the water.  It is an older carrier of Kuznetzov class (the Russians have one of these operational) and slightly larger than the Gorshkov that the Indians have purchased and which is being made operational for them (lazily) by the Russians.

The reason for the ski jump is because this is a STOBAR style carrier configuration.  It uses forward speed and a skijump to get sufficient airspeed for the aircraft aboard.  This is in contrast to the CATOBAR operation of our carriers, the French CDG, and Brazil's Sao Paulo which was formerly the French Foch.  What this in essence means is that planes must be lighter to successfully take off.  In plain words, that means no heavy strike packages can be flown from the deck. 

Consequently, a carrier such as this is a poor tool for force projection beyond VTOL aircraft (of which the Harrier is the only currently operational version) and helos (for which there are many smaller carriers owned by Thailand, Italy, India, etc).  These 2nd tier carriers can support a dozen or so Harriers.  We call these Amphibious Assault Carriers (like Kearsarge) and among nations with carriers, all beyond the nations mentioned are of solely this capability.

Among nations, 3 possess any capacity to launch real strike packages from std fixed wing aircraft- the US (10), France (1), and Brazil (1, although it cannot launch newer strike aircraft such as the Rafale or F18 and is limited to older Super Entendard class planes).  All other carriers including the Varyag, Kuznetzov, and Gorshkov, while being able to launch contemporary fighters (Su27 variants from the former 2, and Mig29K from the latter), simply cannot pose any real offensive risk.  Their roles are for mostly air-based fleet defense, and perhaps some air superiority.

Surely, a wing of Su27s plus helos can destroy a lot of stuff as the Su27s provide air cover and the helos launch missiles, but you cannot *bomb* at altitude with these carriers; you cannot fly in at 600KIAS at 40,000 feet and drop JDAMs from a 4 or 4.5G fighter/bomber.  Only the US and France can do that.

So, with these vessels, you can dominate a contest against a Harrier Carrier and you can sink ships, and surely fuck up a nation like Ivory Coast with your helos, but you cannot force project and bomb people like we do or France is doing in Libya.  And the Sao Paulo, to a lesser extent, though it would be outmatched from an air superiority perspective against a modern-equipped air force as well as against a CBG possessing 4G fighters.  That said, Brazil may well spend a ton of money to lengthen their catapult to give themselves a higher capability.  As things stand they are limited to the A4 Skyhawk which is absolutely no match for a Sukhoi 27 or Mig 29 or a terrestrial airforce with at least a 4G fighter.

Apr 7, 2011 9:29 AM

so, what...the ECB is actually going to try to from organic demand or something?  They hope to be a carry trade target here or something?

Apr 8, 2010 1:24 PM

ROTFL...Australia has NOTHING of the kind!

When you say "huge," dude...we need like 10 more SAUDI ARABIAS for China to be like the USA.  Like 100 MILLION barrels PER DAY.

Australia's energy reserves are insignificant.  We need light sweet 100:1 EROI black gold for China to be the 21st Century America.

KSA has huge energy reserves.  Canada's are huge but of astoundingly LOWER EROI.  Countries like Iraq have huge energy reserves.  Australia does NOT.

Apr 8, 2010 12:48 PM

China is not taking over.

What everybody like Armstrong fails to understand is that this is not a normal business cycle.  We are not in the same world as we used to be, where energy supply can be grown going forward.  We are now in a contractionary climate.

America will not "fall" and then China just takes up the reigns and expands and grows and modernizes to a newer, moderner, 21st century version of what we were in the 20th.  There simply IS NOT the oil supply to support that.

Not even fucking close.  Take a look at the Wiki page of oil consumption per capita and how it DIRECTLY lines up with the wealthy nations who consume the most versus the poor nations who consume the least.

Take a look at how much per capita consumption Americans or W. Europeans use and then apply that amount to the population of China and India.  You will rapidly see that oil production would need to triple from here.  That simply is laughably impossible.

There is no rosy future for China to be the next, bigger version of America.

This is the problem with economics as a pseudoscience - it pays NO attention to the resource constraints in the real world.  It ASSUMES that higher prices always lead to more production; that is an AXIOM of economics.  In fact, this was the biggest obstacle to understanding of Peak that an otherwise intelligent economist friend of mine had.  It seemed outside the realm of the possible that higher prices or demand would *not* in some way lead to more supply.

The oil peak does not care what men think.  It is the physical world of FINITE headroom and capacity and rates of doing things imposing itself upon us.

Apr 8, 2010 2:19 PM

Confused here...

Um, what part of exponential compounding does the author think is novel?

Listen, when something has a growth rate, it DOUBLES on a predictable interval.  Don't say OMG, in THIS doubling interval, we added as much as the entire rest of history combined...that's what doubling IS.

NOBODY should be surprised that the national debt keeps doubling

Apr 8, 2010 4:23 PM

ROTFL.

And then what do you do when a toxic cloud from a reactor or plant accident blows over it?

Putting down roots in a crisis that you would EXPECT to devolve to Madmax requiring a compound and your own fuel supply is IDIOTIC.

How'd the Polish Jews do on their remote farms in 1940?

Did any of you watch Dr. Zhivago like I told you to?

Apr 8, 2010 4:28 PM

WTF is the POINT of something like that?

I mean, yeah it's cool to shoot as a LUXURY but it has no place whatsoever in the future you people foresee.

You need to watch Zhivago, where they seized EVEN HIS REMOTE COUNTRY FARM, and put a sign on the front door, "PROPERTY OF THE PARTY, ENTRY FORBIDDEN, PENALTY DEATH" and then watch Heat.  Have NOTHING you cannot skip out on in 30 seconds flat if you feel the heat around the corner.

In this madmax world you all are "planning" for, you are talking about putting down ROOTS for fuck's sake, and lugging around ridiculously heavy weapons.  You can't CARRY all these freakin guns with you while you carry provisions and water as you have to HIKE out of the fallout zone!

JFC, one industrial accident upwind and your entire compound is POISONOUS.

If you want to stockpile something, stockpile medicines, basic antipyretics, antibiotics.  Think about it...a trivial infection can kill you without medication.  Those with the medicines will be the gods.  Everyone else BUYS THEM.  And you want to talk pricing leverage, talk to a guy whose child is dying from a scratch.  Nevermind just to keep yourself alive long enough for things to settle down.

Apr 8, 2010 4:45 PM

I've commented on this frequently over the past 3 or 4 years...why in the hell did the OWNERS of US companies, namely the pension and mooch funds, some of whom own enough shares to have their own directors on the board, allow the management to direct all the profits into mgmts' pockets??

Apr 8, 2010 5:04 PM

Naw...many jews ran.  They just didn't get far enough.  It wasn't as if the polish jews, who were by far the most disproportionate victims of Reinhard, had the internet or CNN to tell them the blitzkreig was coming.  It all happened very quickly and it was too late before really anyone could do much of anything.

One must consider that not all concentration camps were for extermination; there was a specific profile to which ones located in which places were and were not.  So the "jewish experience" in WW2 was not uniform. 

As for fire alarms, you gotta see some smoke and fire.  It's a good analogy, but a better one is a nightclub fire.  You need to be at or out the exit before the crowd gets Point of Recognition or else your fate is precarious.

The deflationists seem to plan to be the guy scooping up dropped cellphones and jewelry and loose change after the stampede.  Yeah, good luck with that. 

Apr 8, 2010 5:09 PM

Let me translate Bernanke's statement for everyone:

You need to pay us back real things for the imaginary dollars we lent you which was "collateralized" by capital we did not have.

I'm going to enjoy Madmax.  I'll go into a village and proclaim myself a goldsmith with a massive hoard.  Then I will flood the region with paper "loans" against my 0 reserves and then jack rates to force everyone into default and say it's time for austerity, now give me your land, cattle, and daughters.

The fucking Fed deals with IMAGINARY MONEY backed by NOTHING.  Why should ANYONE respect their loans?  They lent what they did NOT HAVE.  All the banks do that.

What we should DO is repay the banks IN-KIND.  IOW, print up our OWN money based upon NO CAPITAL and lend it to ourselves at a mandatory exchange rate and call it a done deal.  Fuck them and their usury.

Apr 8, 2011 2:27 PM

blah blah blah...Japan hasn't defaulted yet and up until Fukushima was facing FX increase

Apr 8, 2011 5:24 PM

I am?  WTF...I need to go flip them for smokes

Apr 8, 2011 5:26 PM

you're full of crap...most of the national debt is held by merkins.  SS is the largest creditor.

Apr 8, 2011 9:56 AM

This idiot actually believes that there is more supply coming of things like oil...HAHAHAHAHAHAHA

Economists are fucking morons

Apr 8, 2011 9:58 AM

KidofSpeed Part 2

Apr 9, 2010 1:18 PM

WTF happened to my post???

The Fed cannot be insolvent because a FRN is an obligation to pay one FRN.

Apr 9, 2010 10:22 AM

I find this shit HIGHliarious.

Everyone is running around fretting about what NUMBERS ON A PIECE OF PAPER say.

WTF...OMFG...Greek bonds print 14%.  So, what, they have to pay someone 14% on imaginary money lent to them by a bank that never had any real capital to begin with??!?

JFC, *I* will lend Greece $265B in imaginary TravDollars right now at only 5%.  Just give me access to the fucking Fed's mouse and I'll make a few clicks.

What we call "money" which is actually DEBT is trending toward a Point of Recognition that the whole shebang is a fucking FARCE.  Why should ANYONE respect a loan by a bank that never had any capital?

Real Bills Doctrine, coming to a theatre NEAR YOU!

The entire system of phony promises and phony lending of phony capital against real assets is coming to an end.  The bankers are struggling as mightily as they can against it, because their entire LIVELIHOOD and the entire "profession" of modern or neoclassical economics, depends upon the perpetuation of this system whereby they entitle themselves to REAL assets for doing the service of lending out phony, imaginary, fictitious, illusory capital.

In essence, our system consists of a village where one guy enshrines himself with a flow of real goods for providing the service of printing money.  He lends his unbacked PAPER to you so you can have money, and in return you give him a bushel of grain every month and a balloon of your cattle at the end of the loan term.

This is EXACTLY what happens when the Chief uses force of arms to ordain some entity or person with the exclusive right to take payment for the provision of money.  In fact, that is the whole freakin REASON BEHIND Central Banking!  It's what Paterson and the BOE had IN MIND when they founded this racket in 1694 (with completely fictitious capital).

Apr 9, 2010 10:57 AM

FUCK YOU, Durden...the banks NEVER LIE

Apr 9, 2010 9:59 AM

Every single measure enacted in the last 1.5 years has been to help the BANKS.

TARP was the Senate going alone to put taxpayers DIRECTLY on the hook for giving the banks MONEY with which they paid themselves MASSIVE bonuses.

They told us the REAL economy would collapse...oh really?  You mean my car wouldn't have started on that morning?  The electricity would have shut off?

These motherfucking bankers and economists act like the SUN ITSELF would not rise if it wasn't for their jew confetti (that is a Weimar term).

Apr 9, 2011 2:09 PM

are you an idiot?

Japan is known to have 100,000kg of plutonium laying around, and perhaps 300,000kg stored elsewhere in the world for them.

The mechanics of the implosion device are not in any way a technical challenge for this nation.

They have been a de facto nuclear weapons State for decades.  WTF would they need to hide?

Apr 9, 2011 2:10 PM

good god, STFU

Apr 9, 2011 2:13 PM

typical asian bullshit...the fretting over "worry" and "trouble."  This is why people don't speak up in consensus building sessions.  Don't complain, don't cause trouble.

You see the same shit out of China in official notices advising people NOT to cause any trouble to local authorities over the toxic waste pouring out of every waterway and toxic smog blanketing the land.  Fuck disease, death, mutant children; worry and trouble (inconvenience) are what matter.

Apr 9, 2011 2:15 PM

concur..and you know who subsidized all that fiber buildout?  WE DID.

WE (in the form of our local gov'ts) provided easements for these wires as a public benefit so that shitty companies like Comcast can strangle inexpensive providers out of business?  WTF, have you seen how much an on-demand movie costs?  Fkin FIOS seemed to want like $8!  PSN wants like $3 or 4...no wonder they're so pissed at Redbox.

Most of these movies aren't worth more than a fuckin dollar.

Aug 1, 2010 11:13 AM

she's stupid.  Stupid people can't be educated.

Aug 1, 2010 11:30 AM

Companies need to borrow more money in order to keep executive payscale growth.  Fuck shareholders.  Fuck dividends.  Fuck profitability.

Corporations exist to serve executives

Aug 1, 2010 12:02 AM

STFU all you little people and get the fuck deeper into debt!

Aug 1, 2010 4:14 PM

The world is awash in dollars and they are available to anyone for the right price.  There will be no deflation.  Every time it pops up, the Fed crushes it with liquidity at the margins.

Sure, if you are solvent or can access credit or cash, you can vulture on people who are dumb enough to try to repay their debts.

Aug 1, 2011 10:14 AM

...as opposed to what, the peace and tranquility there now??!

Aug 1, 2011 11:23 AM

yeah, I think they were out protesting TARP, dipshit

Aug 1, 2011 11:47 AM

huh?  Minorities already do a bangup job reflecting poorly on themselves, especially blacks, who manage to commit greater than half the homicides in the US each and every year.  50% of black women have herpes..the list goes on and on.

WTF did they need Obama for?  The meaner areas are ALREADY USING MARTIAL LAW.  You should really look around at the curfews in certain major cities that have been NECESSARY to curtail black crime.  Hell, look at the Black Expo in Indianapolis recently where they had to erect a veritable police state to avoid a repeat of the rash of shootings from the same event the previous year.  Local commentators were asking, "safety, but at what cost?"  This is the cost.

I have no idea why you see this as injustice...not only do the "meaner" areas require this level of security, the populations there demand it to restrain their own impulses.

Aug 1, 2011 11:54 AM

don't ever look at the NG productive curve...your head will blow up

Aug 1, 2011 11:58 AM

Why are you disturbing all the hysteria and panicking with all of these FACTS, dood?!?!?!

Just go along with the herd mythology

Aug 1, 2011 6:17 PM

wtf is wrong with eating kittens?

Aug 1, 2011 8:24 AM

read ch. 17 Brave New World.  Leisure time isn't a benefit for most

Aug 1, 2011 8:25 AM

did you see Watson perform?  Watson destroyed all humans

Aug 1, 2011 8:26 AM

MCD is 365black now.  Nothing that is a jobs bin for this demographic can be allowed to shed workforce.

Aug 10, 2011 12:43 PM

yeah, wake me up when they actually vote these bums out

Aug 10, 2011 9:23 PM

have you not been paying attention to the rest of the market?  shit is absolutely cratering.

You trade with a trailing stop in this volatility, you'll be stopped out.  Better to spend the money on a downside put for insurance.

The CHF has gone even more apeshit than gold

Aug 11, 2010 12:23 AM

EROI is what matters, Gulf oil is higher than tarsands.  The lowest-cost producer is Syncrude.  They have the Cadillac deposits, all surface.

Aug 11, 2011 1:55 PM

well, it's also a matter of that the rest of the currencies can't have everyone flocking to CHF and making life hard for them.  This is why FDR banned gold, because people were stampeding out of FRNs.  On the flipside, the desire for safe haven is making life expensive for any exporter

Aug 11, 2011 1:59 PM

Buying gold doesn't take money out of the economy, dude.  It transfers the money from one holder of gold to the other.

CBs don't redeem paper money for gold any longer.

Aug 11, 2011 12:11 AM

Brioni suit pants do not cost $6000, and Kiton is typically more expensive than Brioni due to the thinner wools they tend to use.

Aug 11, 2011 12:12 AM

why are you still fixated on taxing?

Aug 11, 2011 2:36 PM

yes...rich people buy swiss watches.  I'm wearing one now and have another at home.

Losers wear knockoffs or cheap crap like chinese Fossil trying to look bigtime.  Only non-swiss watch worth a shit is seiko.

Aug 11, 2011 2:39 PM

the EZ banks are not in great shape and most of the eurozone is a net debtor.  What you meant to say is that the deutschemark is in great shape

Aug 11, 2011 2:43 PM

Look man, it's very important that you and everyone else understand this concept.

DEBT is a supply and demand instrument like ANYTHING ELSE.  There is NO DEMAND for credit in the US at even 2%.  Nobody will borrow at that rate.  YES, the Fed follows the economy and YES, there is very little wealth that can be had in the US.  There's no POINT in borrowing money to do economic activity here because aggregate economic ROI has gone flatline or even negative in the USA.

Would sovereign rates be higher?  Sure!  Would people be lining up to borrow at 10%?  Hell no.  Credit's inability to GROW at higher rates is WHY the Fed had to follow the rate regime downward.

All the idiots out there thinking high rates will magically make their stupid savings account money by virtue of magic are fools.  To PAY YOU the coupon, the banks have to EARN a higher one elsewhere...and they cannot!

Aug 11, 2011 3:11 PM

people who use their phone as a watch lack class and style.  Simple as that.  This may work for you, but let's just be honest about the truth.

Aug 11, 2011 3:15 PM

well, the riots that took place in London and Milwaukee were by a particular demographic that doesn't apparently warrant heavy news coverage.

Aug 11, 2011 8:22 PM

look at USPS's employment demographics...does that "look like america"?

the jobs programs (USPS, FNM, FRE, Federal Agencies) that created the artificial black middle class are going to evaporate because the nation can no longer afford this carrying cost and none of the organizations that hired for race reasons have failed to be completely fuckin destroyed by the hiring and promotion policies

Aug 11, 2011 8:23 PM

compare the employment demographics of your PS versus ours

Aug 11, 2011 8:24 PM

look no further than the .gov's hiring and promotion policies.  Seriously.

I know these hate facts are scary to you and everyone here, but the truth will set you free.

Aug 11, 2011 8:27 PM

Scamtrak lol...the TGV system in France and Europe actually turns a profit as does the Shinkansen.

But when you turn GSEs into blacktopias, wtf do you expect, competence?  It's run like Atlanta or Philly schools

Aug 11, 2011 8:29 PM

look:  no GSE has had any kind of MERIT-based hiring or promotion policy for several decades.  Their ultimate collapse was as foregone a conclusion as Zimbabwe's

Aug 11, 2011 8:37 PM

yes, they have a mental disorder.

Only crimes committed by white people are worthy of condemnation.  Nothing done by anybody else should be disapproved.

London riots?  Hardly covered...got pics of blacks forcing dumbass whites to strip naked in the middle of the street.  Not news.  RT covered it in its awesome blackness.  CNN?  Nah.  Flash mobs in the USA, Ohio, Wisconsin, Philly?  Nah, talk about flash mobs and show a picture of the white version, where people show up and do a dance routine.

So if a brownish person stones a fag, that's cultural sensitivity.  If a white person does something, ZOMG, roll 24x7 coverage.

I mean, FFS, they are cutting women's clitorises off in Egypt by the zillions, in saharan Africa as well...yet...we...hear...shit about it.  We just keep hearing about the same old holocaust shit on the Hitler Channel and the Jena 5 or 6 or wtfever and Martin Luther King.

It's almost as if the media is dominated by people who are both marxist and hate anglo saxons.

Aug 11, 2011 8:41 PM

the police LET THEM RIOT.

Wanna know why the Police weren't there when they were in their SWAT RIOT glory for G20 and shit?  Guess?

Google David Dinkins and Crown Heights if you don't know.  Cultural sensitivity is why.  Don't want to bring the truncheon down because the cultural sensitivity towards people who are uncivilized and violent must predominate everything.  And, they've already cued the fucking EXCUSES for wanton violence, looting, and arson.  It's all whitey's fault.

Everybody need to wake up and pick a fuckin side, because if this shit comes your way, what...you're gonna go over and make peace with your bbbbbut....bbbbut...I Voted For Obama act?

Aug 11, 2011 8:43 PM

it took Hitler half a decade to even reduce this ownership bloc to 33% or so.  In the end, after all the nonstop agitation and the marxist insurgency funded by the bankers in the clan and advocated by the media moguls in the clan, the Germans did what many had done before, decided they just couldn't coexist and began expulsion.

The genocide was actually Himmler's idea.

Don't believe we have a bent up news media?  Watch RT.  The russians retook control of their country and they WILL actually show the reality of the London riots where our news media ignores it or lies because it simply doesn't mesh with the PC doctrine

Aug 11, 2011 8:45 PM

wtf are you gonna do, start hollering "RAYCISS" at everybody?

You ain't having fucking anyone banned

Aug 12, 2010 11:47 AM

the outflow is due to Boomers retiring.  Simple as that, and get used to it.

Aug 12, 2011 11:25 AM

Europe needs lots of dollar

Aug 12, 2011 8:01 PM

I was also a NMS; I received a tiny check.  That plus $.25 back then got me a dialtone.  One of my former business partners went to school in a time when it meant admission to places like Harvard.  Bernank too. 

The entire Atlanta school system was dedicated to closing an achievement gap that despite 30 years of trillions in spending, hasn't BUDGED AN INCH (except by cheating).  There are a myriad of programs like the NASP set up to reward even the mediocre so long as they are the appropriate color.

We will lower the standards of everything so we can have adequate participation by those who cannot otherwise make the grade.  This is suicidal.

And we will denigrate the people who invented the car, airplane, modern medicine, refrigeration and literally everything else, with collective guilt.

Aug 12, 2011 8:11 PM

it's a nice theory, but it runs into the inexorable math of the compound interest function on the existing money supply.

It also doesn't gel well with the spending habits of sovereigns.  Look, Japan hit the wall of economic saturation 30 years ago and they are still buying bonds with QE.

I continue to reiterate this point:  there is NO DEMAND for credit in the US, even at ZIRP.  Think about this.  What business could you start now with a low-interest loan in this economic climate that has a chance at earning a positive ROI?  Without subsidies. 

Open a factory?  LOL.  Mine?  LOL.  The basic things that go on in a growth-stage economy have all been tapped out.  The oil is depleted, the mines are depleted; we moved from hematite to lower-grade ores long ago.  Production of everything in the US except bullshit has been in decline for decades.

All these things are not the sign of an economy that is motivated any longer by credit offered even at 0%.  The world economy, in the aggregate, is facing this same scenario due to the oil peak.

Aug 12, 2011 8:14 PM

I wrote years ago, think it was on TF, that the Liquidity Trap that Japan encountered and has been trying to QE out of for decades, was not even acknowledged as real by contemporary economic theory.

The basic theories that the economists live by do not take into account the inability of something to grow further.  Yields in Japan are zero.  Real yields.  There's a point at which all things saturate and you cannot just pump in more catalyst to make the reaction move faster

Aug 12, 2011 8:18 PM

partially true.

On the flipside, question why there is "nobody" that is creditworthy...it is because there is nothing to DO anymore in an aggregate economic sense in the USA or Japan that can earn a real profit.

Businesspeople, the potential lenders, realize this, which is why there is NO DEMAND for credit.  Housing was a synthethic economy.  It has been THE economy here for a decade at least...a classic ponzi of flipping to a bigger idiot.  Before that it was stocks.

We've been in a direct ponzi since at least the mid 90s.  At each crash point, demand for credit crashed and the Fed was forced to decrease the price of credit.  While there was still surplus oil capacity, that succeeded at various points at animating the corpse.  Then we hit C&C peak in 2005.

Aug 12, 2011 8:20 PM

deeper than that:  at a basic level, you neither lend nor borrow at 2% when 1% is the best ROI you can achieve.

This is where we are.  I wrote extensively on this and the principles of synthetic debt on TF back in 07/08.  People think CDSs were "reckless" wagers; they weren't.  They were the only thing forwarding growth of the credit base once the real economy achieved an inflection point.

Aug 12, 2011 8:23 PM

shit...all I got was a little Finalist card followed by the tiny little check for an amount that didn't cover freakin books for a year. 

Aug 12, 2011 8:24 PM

we don't need more jew confetti

Aug 12, 2011 8:34 PM

uh oh, someone just pulled a Helen Thomas

Aug 12, 2011 8:36 PM

good luck with that gold bubble if that's the case

Aug 12, 2011 8:52 PM

DC still majority black.  Have those people ever worked?

Aug 12, 2011 8:53 PM

somewhere there is a bell ringing; shouldn't you be salivating?

Aug 12, 2011 9:03 PM

The Chinese also brought in the Japs ostensibly to help with this and immediately started trying to steal their technology.  The japs up and left them.  This stuff is documented.

ANYone who does business with China is looking to get ripped off

Aug 12, 2011 9:08 PM

TGV and Shinkansen turn profit.

That was their investment as a result of the US's oil peak and Arab tiff in 73.  Japan has a 30 year run without a single fatality.

they have 200mph trains and we have...SUVs and suburbia.  The cheap oil we fought for, the reserve privilege of the petrodollar, will be our ultimate undoing.

With knowhow and investment, these things could be running at speeds competitive with airplanes over intermediate distances

Aug 12, 2011 9:16 PM

even better, they are taking railbeds and turning them into bike trails

Aug 13, 2010 10:08 AM

NO.  Complete bullshit.

Aug 13, 2010 10:17 AM

Yes, but we can't have black kids failing and ending up by the tens of thousands in riots/waiting for Sec 8 handouts.

HS, therefore, had to be changed so that we didn't have a racial disproportionality to "failure," then we use college to remediate.  The problem is the legions of kids who end up in the latter not knowing that they really are mediocre and do not belong there.

College *now* is the result of parasitic drag trying to mediate the fact that 25% of our population is 3rd world stock with 3rd world IQ and 3rd world culture.  The cost of it all really IS the cost of trying to paper this over with diplomas.

Aug 13, 2010 11:25 AM

bingo.

The executives outsource labor to increase PROFITS, NOT LOWER COSTS to consumers.

Prices DID NOT go down as a result of moving production...profits went up.  As the executive class has hijacked all corporations, they are making the business decision to pay themselves all the profits.

Back in the 50s, unions and shareholders kept profits flowing in larger shares to rank-and-file employees and owners (dividends).  At some point in Raygun years, the executive class did a takeover of the entire corporate world (inc union leadership) and it is at this point that their executive payscales began their meteoric rise, dividends evaporated, and employees started getting fucked.

You are not part of this class.  You would know if you were.  Because your dad would be.

Once the pressure from owners to deal favorably with employees and owners abated, executives decided to run corporations as their own personal Disneylands.  Toga parties, jets, multimillion $ offices, free living and vacations.  Nothing is too good for them because it isn't THEIR MONEY.  It's OWNERS' money they're spending.

Aug 13, 2010 11:58 PM

Funny story.  I had a krugerrand in Colombia.

The wand metal detector in the airport sensed it in my pocket.  Everyone was like wow what is this, where is it from, and wanted to hold it.  And wanted to have it too.  They implicitly knew what it was and that it was very highly worthful.  My companion there held it but couldn't tell you the USD POG, still wanted it.

So go figure, seems like people like the shit outside of the US.  And, the Colombian paper notes have an ASSLOAD of zeroes on them.

I mean, wtf says scoreboard louder than pulling out 200,000 pesos from a Citi ATM?  Or a hotel bill of 300,000 pesos...or a flight adjustment that was 700,000 pesos?  Or blowing 400,000 pesos on clothing?

Paper notes are the joke...there is so much fraud and bullshit sitting on that "government monopoly."  This video was funny up above, simply because I have a sense of humor.

But to assert that a gov't won't fuck its "monopoly" defies the ENTIRETY of recorded history.  The gov't will STILL be around, STILL be able to issue notes; the monopoly doesn't go away when they shit all over their population with debasement.  They know that and that's why they do it.

I bet those who stockpiled Colombian peso notes, Cruzeiro Reals, or USSR Rubles wish they had chosen another wealth storage agent.  Likewise, I bet a lot of Argentines wish they hadn't stored their wealth in the form of negative interest rate loans to insolvent institutions (bank accounts).

Wanna find me a better mechanism of savings, I'M ALL EARS.  That said, I think that the paperbugs must not travel much.  I have so many paper notes laying around from travels with a shit ton of zeroes on them.

Aug 13, 2010 12:24 PM

IP is stolen.  We have laws to protect it as well as international treaties.  China chooses to ignore them and we choose to let them do so.

As far as IT unionization...lol.  So long as the policy structure of the USG is to encourage offshoring, labor has no pricing power.  This situation is management's dream.  The problem is that management is no longer ownership.  Ownership are all of us and our 401ks and pensions.  They need to tell management to FUCK OFF and die!  Management took corporations, cut dividends, pocketed profits, and gave a share price ponzi to owners which collapsed.  Time to find new management.

US corporations have been wildly profitable but those profits have gone to managers instead of owners.  This is why we really need a stock market collapse to drive decisionmaking back towards dividends.  Dividends prove profits as they can't be faked once a company cannot raise capital.  But the orgy allowed managers to borrow money to pay themselves bonuses, which is exactly what they did.

America became the Bamboo Lounge

Aug 13, 2010 12:31 PM

You're a complete fucking idiot if you think the savings in labor costs goes into consumers' pockets.

Profits go to MANAGERS these days.  Not consumers.  Not owners.

Earlier smartphones were built in Korea or Japan usually from components made there too.  Then, production moved to China.  Did YOU see a massive price drop?  Nope.

The iPhone4 is still $600 like the original iPhone.  The economies of scale and competition have driven costs downward for most devices such as this, meaning you get more phone for your dollar, but this is *natural* deflation via increases in technology.  The point is that there has been no decrease in price due to the consolidation of labor usage in slave camps like China.  It's just meant more profits for corporations which meant larger bonuses for management.

Aug 13, 2010 2:35 PM

Bell Labs FTW.  I mean, transistor??? Scoreboard.

T. Long is a ponzi player.  Execs care about the share price because share price = bonus.  So they will fucking fire everyone, goose the EPS, take a huge bonus and watch the company die.  They get their golden BK parachute and to retain "top talent" during reorg. 

All the owners of corps got drunk with the ponzi instead of being satisfied with CASH FLOW.

Now, T. Long is a fuckin speculator doing HFT.  How droll; wtf is he gonna say about innovation if that's his idea of it?

Aug 13, 2010 2:44 PM

oh yeah, the chinks, dots, and russkies are all so much smarter than we.

That explains their societies versus ours...right?  I mean, it's how the Soviets landed on the moon and chinese invented the iphone.

Aug 13, 2010 2:50 PM

what the fuck are you doing posting on the internet?

go live in a cave, Luddite

Aug 13, 2010 3:08 PM

Sprott FTW

Aug 13, 2010 3:48 PM

I kinda liked Busch because he primarily had the good sense to stay the fuck off my TV!

He was no more or less miserable than any of the past 5 Presidents

Aug 13, 2010 3:51 PM

did he say he was a conservative?

So what if Newt left his wife, she was probably a bitch

Aug 14, 2010 11:14 AM

yes, when I try to explain the scope and extent of US corruption to foreigners who believe that their 3rd world nation is more corrupt, just trying to grasp the circuitous details and routes monies go thru actually makes them dizzy.

Our elites have shell corporations all over the world, trusts, random vehicles, banking secrecy, co-conspirators in a money laundering lazy susan from here to China.

You really have to have a head for details to even get how you are being robbed blind.  When confronted with this, most americans just say "Obama will fix it" or some other party line retreat.

Aug 14, 2010 11:23 AM

JGBs??

He's doing what Gross is, and that's frontrunning the portion of the duration curve the Fed hasn't already flattened to 0%.

The Fed's activities are systematically pushing everyone further out the duration curve as they seek capital gains from OMOs and QE.  Essentially, with the Fed in the bond space, MBS and USTs of longer duration are seen as risk-free gains.

Only when/if people flood out of bonds into *all* commodities (not just gold) and other real things, we will see a bond crash.  As of now, GSE and bond funds have been the surest bet for any investor/speculator over the past few years.

Aug 14, 2010 11:47 AM

lol...I was in the 3rd world for the past week, spending local notes with tons of zeros on them and having the locals gaga over a krugerrand.

In fact, every time I go outside of the US fishbowl, I realize that gold is a saner savings vehicle than paper.  Paper might work for the elites, but they won't honor my claim tickets in a liquidation.

Aug 14, 2010 12:03 AM

The gov't apparently does nothing BUT lie.  The Truth is classified, so divulging it is treason.

Read that last sentence again, everyone.

Or if you can't, just fucking get off your fat American ass and go travel somewhere outside of the comfort zone of American chain restaurantopia.  Like another country.  Go see how the 3rd world lives.  Marvel at how many zeros they have on their notes and remember that those weren't always there.

Americans live in a fishbowl and they think the end of the universe is the tank walls.

Aug 14, 2010 12:06 PM

WTF is the difference between a "world" currency and the USSR Ruble?

JFC, man, open your eyes.  Seriously.  People will CONTINUE to do their duty; that's what men do.  They continue to show up at the power plant or the water plant.

I don't see any credible distinction between the "world" currency of the USD and any other note.  The USSR collapsed and life went on.  It's not as if people won't figure out how to wake up in the morning in the absence of the almighty dollar.

The problem here is that we are Americans and apparently most of you live in a FISHBOWL.  Step outside of the tank.  Gasoline costs?  What, I won't be able to DRIVE TO THE STRIP MALL????  OMGWTF.

Get a grip, people...life goes on.  People seem to find a way to survive elsewhere in the face of unaffordable gasoline.  It was 9700 pesos per liter in Colombia.  There are still cars on the road, people eating, living life.

This is the problem; we Americans collectively cannot CONCEIVE of how "those people" could POSSIBLY get by without wal mart and ipods and V8 engines in SUVs.  OMGWTF, how do they possibly LIVE!??!?  Whatever are we to do??!?

You hit the nail on the head, people were WHINING when oil was $150/bbl.  And that is because we are a nation of WHINERS.  Europeans and S. Americans LAUGH AT US because their lives don't feature the same excessive comforts.  We're all like a bunch of spoiled, pampered WOMEN.  Whine, complain, and get "offended" at the drop of a gd hat.

Trust me, man, people have been through worse than 150/bbl oil and somehow managed to muddle through.  In Argentina, Brazil, etc., oil went to infinity/bbl in the local paper before they issued new notes that started to rack up their own line of 0's.

Yeah, life will change.  You may have to actually use those two things attached to the bottom of your fucking legs and actually WALK somewhere.  You may have to actually wear the same apparel more than a few times.  You may have to actually line dry your clothes.  May only get 1500 calories per day instead of 3000 and might start losing weight.  HOLY SHIT, that sounds like the fucking APOCALYPSE to me.

Aug 14, 2010 12:08 AM

The system doesn't have to collapse, sheesh.

what is all this fascination with total collapse to madmax?  How many devaluations have Argentina or Brazil been through?  There are STILL PEOPLE THERE.  Lights still come on, water still runs, food still gets grown.

The collapsaholics like Mako are apparently as myopic as the polyannas.  Fuckin currencies go tits up all the fking time.  And yet the State persists.  There are MANY nations out there right now on their 3rd or 4th currency in 20 years!

I have to marvel at the commentary and ask, do you people ever TRAVEL?  I mean, gfd, I guess maybe I don't go to the tourist equivalent of Eurodisney when I step outside the country, but I've been now in, what, 3 or 4 places in the past few years that have all experienced severe currency inflations NOT due to credit demand...where said may be the 2nd or 3rd replacement for successors that also collapsed.  Where a throwaway note has 1000 on it.

Yet I KNOW people who fucking grew up in these places and they have pictures of themselves smiling on facebook from the days before during and after the currency meltdowns.

GFD life goes on.

Aug 14, 2010 12:19 AM

Index futures dictate the market.  The daily action is just to normalize to them.

Market action now is getting more like it's forming an Einstein-Bose condensate

Aug 14, 2010 12:52 AM

Late, bitchez

Aug 14, 2010 3:40 PM

Gross:  he is expecting the Fed to move out the duration curve and buy those longer rates down.

Buffett's bonds are not going to go any higher but probably not any lower either.  Neither one can "get out" of positions that large at any rate.

Aug 14, 2011 1:59 PM

the labor that isn't affordable is EXECUTIVE labor.

Companies can't afford their workforces because they have to preserve executive bonuses

Aug 14, 2011 11:22 AM

so these were 6-8 sigma market moves eh?  Is there anyone who doesn't see these things never happening again?

Something has always been completely wrong with the risk model assumptions out there

Aug 14, 2011 3:01 PM

you should really investigate the production figures for kerogen in those shales...this is not oil, rather an oil precusor

Aug 14, 2011 3:04 PM

Accepting it does not guarantee survival, man.  Luck does

Aug 14, 2011 3:14 PM

they come into my affluent neighborhood and we will be stacking them like firewood.  Large calibre repeating firearms are the province of the affluent

Aug 14, 2011 6:41 PM

You're an idiot...nobody should care what you think

Aug 14, 2011 6:42 PM

the KKK?  You mean all 3 of them?  They installed Obama?

Why do you suppose people of all races avoid blacks?  Just don't like melanin?

Aug 14, 2011 6:44 PM

Jewish hate groups are the arbiter of who a hate group is.

Jewish organizations such as NAACP, SPLC, and ADL make the definitions

Aug 14, 2011 6:48 PM

Nobody would want to ride on a black-only bus, jfc.  And blacks farejump as a rule so such a system would go bk immediately.

Without white people to leech off of, blacks' societies quickly revert back to African norms

Aug 14, 2011 6:49 PM

Who, Oscar Wilde?

Aug 14, 2011 6:53 PM

as opposed to a cocksucking cokehead like the current guy?

I mean, can things really get worse?  Why would Bachmann do ANYTHING differently than her predecessor?  She'd be Busch 3.0

Aug 14, 2011 6:59 PM

take this from me:  one of the positive side effects of the government's 30-year race-based hiring and promotion policies and their consequences-be-damned construction of an artificial black middle class is that the government, as an entity, is totally incompetent.

Look, the government has an issue with NASA's "lack" of black scientists and is bound and determined to rectify this "crisis" (along with others like lack of blacks in SOCOM).  And it doesn't matter if they have to eliminate all real space travel to dumb the agency down to the level that can support this additional white tax.  Same thing with the SOCOM; operational readiness and capability is secondary to diversity in importance.

This just means, once you eliminate merit, the organization is no longer operating at its maximum capability.  And that is how every agency across the government is.  They have tossed overboard standards for the CIA, NRO, FBI, etc., in the name of diversity.

The agencies that have merit-based standards (aka, have a diversity crisis) will be crippled in the name of progress.

Aug 14, 2011 7:01 PM

ethical people probably find you and your stance on abortion disturbing.

Aug 14, 2011 7:37 PM

you must have a real problem with pretty much all nonwhite people, then

Aug 14, 2011 7:39 PM

we're a ghetto nation now...cheat lie steal, whatever you have to do to get dat paper

Aug 14, 2011 7:42 PM

even if every single nation on earth banded together, they would still not be at parity with our naval capability.

We're literally that far ahead.

India is not joining any alliance Pakistan is in anyhow

Aug 14, 2011 7:49 PM

inflation, man...nickel won't cut it

Aug 15, 2010 10:24 PM

You state things as axioms which are not true.

Labor 100 years ago is worth the same as labor now.  Labor is labor.  It's an abstraction.  The LTV from Marx, et. al., was not intended to be fixed by a particular point in time.

Whale oil labor in 1840 was worth what it was paid, this is supply and demand where value is created by the market.  Do not say that this labor was worthless at THAT point in time because it is worthless now.

Software development labor now would have been worthless THEN.  So, if one of us cashes a check for $100 for some coding work, our $100 is 100% overvalued?  This notion that the value of labor decays due to entropy is also grossly wrong.  Entropy has nothing whatsoever to do with it.

Aug 15, 2010 10:31 PM

I agree with you mostly...I see a lot of bugs who want to buy gold and have it "go up" and then they will be rich and can buy things.

AKA, speculators.  But there are others who are merely using it as a more secure savings vehicle that is portable. 

There is no difference between most paperbugs and goldbugs in terms of their desire to be vultures and feast on the carcasses of the bankrupt and become "kings" of a sort.  But there are others who realize that this is a bullshit fantasy and that gold is merely another form of wealth storage.

But it is true that you have to be a bit of a hitter to even afford an ounce these days.  Most people can't just drop $1200 on something the size of a dollar coin

Aug 15, 2010 10:37 PM

I'd be more worried about FRN confiscation or 401ks.

Gold requires trucks and men.  FRNs are in accounts where you can mouse-click them away.

When Argentina collapsed, what did THEY seize?  What do countries seize these days?  They grab bank accounts.  They tax away property and try to turn it into cashflow.

Aug 15, 2010 11:42 PM

you must have failed middle school then, you stupid motherfucker.

It's PEOPLE'S.  People is already plural.

Aug 15, 2010 2:45 PM

Is there NOT a derivatives market in existence which is several orders of magnitude LARGER than the underlier?

When the tail wags the dog in stocks, paper prices go up, nobody cares.  When the tail wags the commodities markets, people can STARVE.

Aug 15, 2010 5:11 PM

Don't let the door hit you on the ass, dumbshit.

You keep hangin onto paper while they tack on zeros and arguing over how many angels dance on the pinheads of the stupid shit you call "financial instruments" which in the real world is of zero fucking utility.

I cannot IMAGINE anyone intelligent thinking that FRNs are a good savings mechanism in the face of every single fucking country in the world undergoing RELENTLESS devaluation over the histories of every currency they've EVER introduced!

Is the fuckin Pound Sterling still a POUND of sterling, jackass?  All this dumbshit talk of deflation...as if the FRN is going to survive that.  What "asset" will NOT be mauled by deflation?

You deflationist financial wizards don't seem to understand what a credit collapse does to the supply side of the production equation, do you?

Aug 15, 2010 5:23 PM

can't figure it out either...I mean, I share his frustration with the madmax gold bugs thinking they will be kings in the zombie apocalypse, but jfc, no need to bitch out over it.

What I CANNOT fathom is paperbuginess...or those who would use a CONFIDENCE SCHEME (FRN) as a savings vehicle.  The SOLE point of advantage of the FRN is that on this present day, you can buy shit at walmart with it.  That's the ONLY thing a FRNbug can say in its defense.

Yet, across the world, across history, we probably ALL have spare change from travels in our dressers that are NO LONGER legal tender in the nations they were issued by or else are now WORTHLESS due to devaluation or repudiation!  Even the goddamned FRN was de jure revalued once in the last Depression.

That's it...the FRN is accepted today by a confidence agreement.  These things change.  The government has monopoly power to declare the FRN null and void.  I can't imagine trusting my "savings" to this or any other government.  We've had a good run, but even the pound sterling is a fraction of a pound now.

The FRN is a more stable equivalent of beanie babies; it has value now because people feel as if it does.  True, gold or anything else is the same, but one is ink on paper whose value derives from who printed it and exactly what ink is on it.  And it is subject to confiscation, revaluation, repudiation, or any of another host of ills that can be visited by the type of sovereign we seem to ALL agree that we have.  Who the fuck cares if it's liquid HERE?!?!  Is HERE the only place on the planet?

I mean, didn't the Euro appear to be on course to collapse like a month ago???

Gold bugs may be irrational, but fiatbugs and especially FRNbugs are even MORE so.  Their whole decisionmaking tree rests upon induction based upon worthfulness today extrapolated out over "forever" and relying on fucking SOVEREIGNS' fiat power!  JFC, the FRN is the essence of tulip bulbs or .com stocks

Aug 15, 2010 5:42 PM

Dude, you ever been to Serbia?

One of my friends went from having a nice life till the day in her words that the US "told muslims it was ok to come and kill us."  Then she was living with her family in a CAR in a WAR ZONE.

There are buildings in Beograd with holes from our bombs STILL IN THEM.  And know what?  LIFE WENT ON.  It was hard, shit sucks sometimes, but people still go on living.  Their world did not end and there were no remnants of zombies there.

Fuck the USA and its exaggerated sense of self-entitlement and worth.  This reminds me of when Hillary Clitton and the "boomers" hit 50 as if it was the FIRST TIME anyone or any generation had hit 50.  It was nothing but a bunch of pansy naval gazers marveling at their own reflections.

There will be upheaval, sure.  There will be hardship, sure.  But the world WILL NOT end.

How will people get from suburbia to jobs?  THEY WON'T.  That's the punchline!  And they'll figure out how to get by the same as Bosnian serbs did who lived in cars for a time.

Things are nowhere NEAR as dire as you collapsaholics make them out to be.  You're all a bunch of misanthropes; that is the real truth here.

There is 85mbpd of oil produced now, MORE than enough for us to get the fuck by as all of India does.  OMG, we will have to walk more, eat less, CONSUME less, run the AC less, run the TV less.  Holy shit, what a CATASTROPHE.

I can tell by this commentary that you've never been to the third world; most people haven't.  Therefore, actually living outside the fishbowl seems inconceivable.  Go get drunk with some serbs in the midday who earn 300 euros a month and tell them just how unimaginable it all is to survive.  Talk to a brazilian or any other South American, a local.

They're going to laugh at you.  Most of the world laughs at the things we Americans view as tribulations, and quite rightfully so.  If the USA collapses and zombies break out, I'll just fucking leave and go somewhere not populated by legions of spoiled women...pretty much anywhere else will do.

Aug 15, 2010 6:01 PM

oh, SOMEHOW, I think people will find the intenstinal fortitude to CARRY ON in the face of the CATASTROPHE of having less processed cheese on a daily basis.

Maybe blacks won't, but who gives a shit about them?

You guys seem to routinely IGNORE any evidence suggesting a zombie apocalypse will NOT occur.

I mean, GFD man, the POWER went out on the ENTIRE N. EASTERN SEABOARD for days a few years ago...what happened?  Zombies?

BTW, I read up on Stuxnet and lemme guess...yet ANOTHER buffer overrun vector in MS.  WTF is the matter with these guys?  How many gd'd times does the same attack vector have to hit MS before they ditch their shitty C++ programming techniques and/or comprehensively review all their code to identify unchecked buffer writes!??!  I wrote code for 20 years, even in x68 assembly and NEVER ONCE wrote to a buffer without a basic length check of the input, yet it appears that every single MS codebase, from IE to the freaking thing that reads in the .lnk files to make pretty shortcuts just fucking assumes that the bytestream will conform to expectations.  Cannot fathom this...

Aug 15, 2010 6:09 PM

must ask: have you been to Argentina to assess this threat firsthand?

Gangs, violence, kidnappings, and robberies occur at much higher rates in S. America than here.  But, I was just in Colombia the other day, and LOOK!  I am still upright and walking and talking.  Likewise the last time I was in Brazil, wow, I even walked alone at night on the str33tz.  Holy crap am I like Charles Bronson?

In reality, things are not as bad as they are made out to be.  We have an abundance of criminal 3rd world element here, they happen to share identifiable characteristics and so this type of crime should be easier to see coming here than down there.

The reality is that we right now have places in America as much violent as Brazil or Argentina or Colombia and inhabited by people sharing similar characteristics as those down there.

But to assert that society is going to collapse to roving street gangs and Clockwork Orange; c'mow now, put the bong down.  You build walls, put on concertina, and you carry on.  In brazil, it even gets you not having to stop at streetlights after dark, so there are some plusses.  But the reality is that most crime is concentrated in the ghettos, slums, favelas, just like here.

If/when the time comes, the criminals won't be hard to spot, trust me on that.  Despite a lifetime worth of programming, you will very quickly learn to assess threats which do not occur by ambush, or else you'll just be a dipshit who gets crept on.

Aug 15, 2010 6:21 PM

wow...Bravo actually SAID all that stupid shit?

Is he aware there was growth in the world without a creditmoney system and without monetary inflation? 

Was the Big Bang when the Fed was created?  The start of time and the universe and all that shit?  Profits only grow via inflation?  That's news to me.  Cuz the fkin Dutch East India Company seems to have proven otherwise in a nation without the BOE, Sterling Bill, and a creditmoney system of inflation.

I mean, it's not as if Real Bills was the world system for hundreds of years or anything.

Inflation doesn't cause growth, it follows it.  The problem that nitwits don't get is that contraction causes the collapse of creditmoney systems via deflation.  OTHER money systems, including Real Bills, do not have that flaw.

What credit money systems DO is provide 1st-tier seigniorage profits for BANKERS.  Deflation causes those to go away.

Aug 15, 2010 6:31 PM

Shit, if you don't LIKE the AM fix, you can always buy at that price.  Look at it as a gift from them to you.  It sure beats whining and bleating like a bitch.

Aug 15, 2010 6:40 PM

wouldn't believe that he ate a fish from the gulf, or if he did that it wasn't completely tested like with a mass spectrometer ahead of time.

The government is full of shit these days.  Maybe he ate it then they gave him ipecac.  Won't also believe he swam there unless I saw it with my own two eyes.

Had a conversation with an idealistic HS student on a plane about the mm-wave scanners at airports and she insisted that they smudge out your face and delete the images, well, because she saw it on TV that they do.  Seems to never occur to people that they could possibly be getting lied to.

Aug 15, 2011 1:10 PM

Prefer phone7

Aug 15, 2011 1:16 PM

he's still a growth monkey...I love how they replaced the other CEO as sales slumped.  I mean news fucking flash...at what point did they think the market for $5 coffees could grow to infinity?

Aug 15, 2011 1:25 PM

who runs the MSM?

Aug 15, 2011 10:53 AM

Nixxon had no choice...the die was cast before he entered office.  At least he got the fuck out of Vietnam, something Blama lacked the stones to do

Aug 15, 2011 11:30 AM

Bretton Woods was simply untenable in the face of US Peak Oil.  Period.

The clever powers replaced a FRN collapse underway in the 70s (THIS is what a reserve currency death looks like) with a petrodollar standard.  Backed by gold, now backed by oil.

As the world has peaked, the FRN is again called into question.

Aug 15, 2011 11:31 AM

Gold production hadn't even close to peaked at that point so they could have bought all the gold they wanted with the dollars

Aug 15, 2011 11:34 AM

so now Bama's fuck ups are NIXXON's fault???

Aug 15, 2011 12:02 AM

from that table on net worth broken down by ethnicity, I can only assume RAYCISS whitey is why asians had higher nets than white people.

Aug 15, 2011 12:04 AM

post hoc ergo prompter hoc...fallacy.  STFU

Aug 15, 2011 12:07 AM

they weren't disagreeing long because I took a detour and ran them over too

Aug 15, 2011 12:08 AM

dude...does the interest come from fucking MAGIC?

How do you think the banks get the money to PAY that interest?

Aug 15, 2011 12:11 AM

class warfare?  You bought that shit?  Look at the videos of the london riots, man...class?  Try race.

Aug 15, 2011 12:12 AM

Figure it out:  the world has historically persecuted Jews because jews have historically DONE THE SAME SHIT AS THE BERNANK AND ALL THE BANKSTERS HAVE.

Where do you think the term "jew confetti" comes from?

Aug 15, 2011 12:15 AM

and then you'd have been pilloried all over the media as a RAYCISS gun nut who hates black people.

these were just "youths", ok?  And I see that "flash mobs" mean a bunch of happy white people meeting to do a dance routine.

The SDHTF in London...blacks hit the fan.  Like Katrina or LA, Detroit, Watts.

Aug 15, 2011 12:15 AM

you jackasses will soon learn that FRNs are not to be confused with savings

Aug 15, 2011 2:22 PM

Rasmussen is consistently the most accurate forecaster of what approval/disapproval means in an electoral sense.  I guess Gallup captures the wider public that doesn't vote.

Aug 15, 2011 2:25 PM

no question about that...if they gave even a vaguely forthright airing of his repeated gaffes, screwups, and assorted shit that they made the nightly fodder out of Busch for, he might be cracking 30 right now.

But this will be a good lesson for the public not to believe any of the MSM anymore.  Trust the media NOT owned by one clan.

Aug 15, 2011 2:27 PM

the clan that owns the media is gung ho for blacks.  They can't not love him

Aug 15, 2011 2:30 PM

I dunno...the market's reaction during the huge slide was a telegraph that QE3 was not forthcoming.  I don't believe the downgrade could move the SPY that far that fast.  But here we are back in a V bottomed uptrend.

Either way, volatility like this is usually a sign to GTFO.

Aug 15, 2011 2:31 PM

MMI was a shitty company...they've LONG since been left far behind in terms of handsets.  Google bought them I guess for vertical integration but who is going to get them to parity with the frontrunners of HTC and Samsung?

Aug 15, 2011 2:33 PM

another also-ran in the US mobile space?

Aug 15, 2011 2:36 PM

Apple tends to have shitty hardware, or at least stuff that is a bit behind the curve.

WP7 is the wildcard in this race; the interface makes the droid and icrap look antiquated.  MS should buy Samsung

Aug 15, 2011 2:37 PM

as an IP attorney, I can rain on your parade here...

Aug 15, 2011 3:15 PM

"social tensions" from income inequality?  Did they just go blame poverty for crime again?

Where the hell are the massive crime sprees and riots in Dakka?

Aug 15, 2011 3:48 PM

priority only extends to the claims, dude.  and without a working embodiment, you have nothing.  As we are still a first-to-invent system, you have nothing here to hang your hat on other than you are a loser

Aug 15, 2011 4:04 PM

that's a strange phenomenon that I noted during the campaign...I said this guy appears to have walked out of a cornfield 6 years ago.

Aug 15, 2011 4:05 PM

yeah...what for?  The world isn't as you wish it was, man.

There is no such thing as color blindness and there never will be. 

Aug 15, 2011 4:06 PM

didn't stop Soetero did it?  Just get photoshop out and the Schwartz can be natural born too

Aug 15, 2011 4:08 PM

no it means DAT'S RAYCISS

Aug 15, 2011 4:12 PM

every street SHOULD be MLK street.  Martin Luther King invented everything.  Rayciss like George Washington, Isaac Newton,and Thomas Edison stole Martin Luther King's ideas.  Nobody ever dreamed before Martin Luther King invented having a dream.  He's the most significant man that ever lived.  He was the one who crossed Valley Forge but the rayciss wouldn't put him in the picture.  He invented the airplane and landed on the moon, built the pyramids, and defeated godzilla.  Every day should be Martin Luther King day.

Aug 15, 2011 4:14 PM

no man, it really DID happen just to throw moonbats like you off the scent of the master conspiracies with triangles and cool numbers n'shit

Aug 15, 2011 4:15 PM

no man it was the Trillumimasons and they used a death beam...from a triangle

Aug 15, 2011 4:16 PM

um...the CIA recruits from DEVGRU to do their clandestine work.  This would make that whole promotion pipeline from delta and 6 a bit less well-traveled.

Aug 15, 2011 4:18 PM

i'm sorry but she look like a babboon...does dat be rayciss?

Aug 15, 2011 4:20 PM

no...he's bi.  Hadn't you heard?  It's not a particularly well-kept secret it seems.  At this point, he doesn't appear to be much interested in women

Aug 15, 2011 9:14 AM

Samsung already has better hardware in their sets than the others, as does HTC.  They will just partner with MS and produce phone7 handsets.  Having been a smartphone user since years before the iPhone, I never thought I'd say this but the latest MS smartphone OS is stupidly good.  Samsung's oled screens are also best in class; they had more orders than they could fulfill

Aug 16, 2010 12:08 AM

Gawd, not this shit again.

The "developing world" didn't invent useful things.  There was no theft of resources.  There was trade.

The transistor wasn't invented by a mexican, the airpline by a chinaman, and the light bulb by an indian.  The western world created all the things people use and want, the developing world didn't.  IQ and the Wealth of Nations.

Aug 16, 2010 12:30 AM

Occam's Razor buddy:  the vast conspiracy is not the simplest explanation

Aug 16, 2010 2:19 PM

People should really watch RT and AJ for a different perspective.

A commentator on RT last night called Obama "firmly controlled" by elite banking interests.  Called for elimination of money creation by banks and return to nationalized currencies.

You would NEVER hear anyone get away with saying that on US TV.  Our MSM is totally irrelevant now.

Aug 16, 2010 2:22 PM

Jealous????

Naw, man, I just don't want to live in a muslim country ruled by stupid fucking clerics

Aug 16, 2010 2:35 PM

isn't this how things are SUPPOSED to work?  Like you use your own fkin cash instead of CREDIT all the time?

Now start paying dividends, bitchez, and I might buy your fuckin stock

Aug 16, 2010 2:38 PM

Is anyone ELSE going down?

NO MORE sacrificial lambs!

Aug 16, 2010 4:26 PM

It takes off the steepener trades or it gets the hose again.

Didn't we just talk about this the other day?  I said GROSS.  The Fed is going to push everyone out the duration curve by systematically depriving them of short-term yields.  It is OBVIOUS.

They desperately want people to borrow to buy things.

Aug 16, 2010 7:54 PM

They won't have any choice.  Look, I know people with formerly-rich Argentine relatives, who basically with all that was left after these devaluations, could afford a nice pair of shoes.

Billionaires are relatively common.  Only those with severe connections to the political class will escape it, as was the case in Argentina.  Yes, they will fuck over everyone.

Those who talk about Raygunomics, lol.  It was an increase in taxes on the middle class via elimination of deductions on interest, such as student loans and CC debt, with a concomitant decrease in tax rates for the very rich.  IOW, it was a total joke and it spawned all this.

Raygun was a figurehead; get that through your minds, folks.  He was no more "in charge" than Crater was; he had the same backers who now back Obamma.

Aug 16, 2010 7:57 PM

$1.4T was total bullshit.  That was just the headline number.  TreasuryDirect told a different story and you can only hope to estimate the losses embedded in the Fed's balance sheet, all of which pass through to the Treasury.  I originally estimated $2.5T and I think that's a decent number to shoot for this time, too.

Aug 16, 2010 8:03 PM

I'll bet money that they flatten the 30 too.

With mortgages indexed to longer-duration bonds, there is really no choice here to lower "real world" interest rates.

The whole spread function mandates it.  It's the last thing they can really do to try to spur lending.  Collapse all rates in all durations and hope that people are motivated by 2% mortgages and shit. 

Why?  Because DEMAND by US for credit of any duration has waned markedly.  So they will try to sweeten the deal.

Aug 16, 2010 9:04 PM

will it mean cheap physical for the little people?

Aug 16, 2011 1:16 PM

turn up the volume, bitchez

Aug 16, 2011 1:58 PM

the lizards already invaded the US and UK well over a century ago

Aug 16, 2011 1:59 PM

or learn how to smelter...jewelry will be exempt

Aug 16, 2011 11:07 PM

these articles are so much mental masturbation by people unwilling to accept that the Era of Growth was ended by world Peak Oil.  None of this monetary or fiscal shit matters, because oil cannot be printed.

Dunno which is worse, the delusions that we can restart growth by fiscally stimulating or that if we just "let the debts go" that we'll achieve a new era of growth after that.  Neither side can face the hard truth.

Aug 16, 2011 11:13 PM

I know a guy who bought 300k worth of gold in the 90s...cost basis around 400 he said. 

Aug 16, 2011 11:14 PM

yeah sure, Cliff...you know that's not what you meant and so did everybody else.

Aug 16, 2011 11:31 PM

pretty much everything is up...meat is way up.  I have to really hawk specials now to even get the bill down but they've definitely jacked prices on everything.  Hell, oil is the levered material in all of this.  We eat oil.

Aug 16, 2011 12:27 PM

everyone

Aug 16, 2011 2:04 PM

his clan already pretty much took over

Aug 16, 2011 2:06 PM

we're AAAA and so are they

Aug 16, 2011 4:58 PM

needs to cross at least $16T for the next fiscal year...maybe 16.5

Aug 16, 2011 5:05 PM

why not just pay the debt with the fake cash instead of trying to live large AGAIN?

Aug 16, 2011 6:47 PM

We have always been at war with Eastasia

Aug 16, 2011 6:48 PM

he's cousins with the editors and guys like wiesenthal

Aug 16, 2011 9:54 AM

our yields sugggest quadruple A.  Same with Japan

Aug 17, 2010 10:47 PM

The Fed stands ready to lend to nearly anyone.

Also, why would MMFs refuse to roll funding when they have no other sources of yield.  The real risk is that they will all seek out pair trades such as these and everyone *retreats* to risk-free yields with leverage.

Aug 17, 2010 12:15 PM

yes, please...I always like it when people talk about me

Aug 17, 2010 12:22 PM

yes, please...I always like it when people talk about me, so much so that I double-post it

Aug 17, 2010 2:54 PM

Ignoratio elenchi.

You conspiracybugs don't do logic, do you?

The apparent conspiracy is because of concert of action of likeminded actors.

Why do FISH SCHOOL?  Is there a commander telling the swarm to move in this or that direction?  YOU need to read up on emergent complexity...

Aug 17, 2010 2:59 PM

what crack are you smoking?

The developed world looted the undeveloped?!??  By what, providing them refrigeration and electric power?

There were no GOODS to loot, only some raw materials to use to make things everyone wants.  The gfd injuns or africans should have gone to the fuckin moon if all it was was the land under their feet having the "wealth."  The oil had to wait a lot longer for someone smart enough to show up to figure how to get it out

Aug 17, 2010 4:05 PM

Risk, bitchez

Aug 17, 2010 4:41 PM

Hmm...no, actually, I dont think I will

Aug 17, 2010 4:50 PM

Hold up, so waiting in line for a FREE HOUSING HANDOUT is "getting treated like cattle"???

The future with food lines will only look like this if the people IN the lines look like this.

Compare Katrina flooding in New Orleans versus places with people who don't look like the people in New Orleans.  Or the Kobe quake.  Or the Indonesia Tsunami...

How the fuck is offering people a FREE HANDOUT to move their criminal, welfare leeching, nonworking asses into someone's neighborhood so they homies can piss on the neighbor's lawns and run the car stereo at maximum volume for 2a parties "systematic shaming"?  Those people in those lines SHOULD be ashamed - of THEMSELVES.

Aug 17, 2010 4:59 PM

They don't want to bottom kill because then they cannot produce from the wells.

They would have to reasses the formation for another point to begin producing from it.

Aug 17, 2010 5:04 PM

If there is a BP cover up, the government has been complicit in it from day one.

Bama doesn't want to get Katrina'd and his lackeys in MSM have really beaten the BP's fault meme to try to keep the slick off of him, but at the same time obfuscating, downplaying, and really working to keep this on the DL

Aug 17, 2010 6:46 PM

Strategy, bitchez

Aug 17, 2011 1:24 PM

I reckon they know they are going to be prosecuted

Aug 17, 2011 10:04 AM

icanhaz $500M at 1.1%?

Aug 17, 2011 10:06 AM

no, they lent it.  But, no, it didn't exist prior to its conjuring via magic

Aug 17, 2011 11:03 AM

Gold just has to catch up with the imaginary interest paid on all those USTs

Aug 17, 2011 11:38 AM

bonds pay a coupon...gold does not.  In a growth climate, that is why interest instruments outperform gold.  At the point when people realize that the coupon <= inflation, gold merely revalues to reflect that

Aug 17, 2011 11:50 AM

I have artwork by dees nutz

Aug 17, 2011 12:00 AM

yes...people in these countries are WAY HAPPIER.

the notion that poverty causes anger which leads to crime is utter bullshit.  The shit you own ends up owning you.  Imagine all the stress just to maintain a fucking lifestyle with material goods.

Everywhere I go, usually it is to countries that are not on the greatest of times, I find people way friendlier and happier than Americans, who are all obese, worn out, and nasty.

Aug 17, 2011 12:03 AM

girl?  Uh yeah, color me skeptical

Aug 17, 2011 12:25 AM

the japs can't intervene faster than we can lol

Aug 17, 2011 8:33 PM

additionally, were the sovereigns who held complicit in the Gordon Brown type moves to sell off bullion?

I wonder if anyone even has Chavez's gold or if they'll have to scrounge around for it

Aug 17, 2011 9:19 AM

keep on dreamin

Aug 18, 2010 1:25 PM

This warrants a Goled, bitchez

Aug 18, 2010 11:02 PM

Emergency, bitchez...sheesh.

This type of competitive QE is going to set up major, major stresses in the international markets.

There's no real way to "devalue" currencies these days, as the bankers are finding out, bc none are pegged to anything real. 

All we can do is cheapen relative to yen, which causes them problems. 

Aug 18, 2010 11:26 PM

This is stupid.

the MONEY SYSTEM we operate in represents a mathematically unpayable debt.  The system is in default the minute it's created.

Money gets lent into existence.  But this loan is ONLY the principal.  The interest is not created.  Therefore, at any given time, a creditmoney system lacks sufficient money to extinguish all liabilities.  The money in existence now in FRNs represents ONLY the principal balance.  Interest on that money does not exist and cannot exist without MORE borrowing.

Do you GET IT?  Anyone who uses a FRN is participating in the same type of ponzi.  The system REQUIRES people to do exactly what the Greeks did and Irish did and Americans did, and that's to GROW DEBT.  If they did not, exactly what is happening will happen, a deflationary collapse of the money supply.

Aug 18, 2010 11:42 AM

gold just went vertical by $10...wtf happened, did JPM go tits up?

Aug 18, 2010 5:34 PM

100% right.

They will take the country and rent it back to the people who live there.  Seen this time and time again in S. America.

Default and return with a production-backed currency.

Currency scarcity is an ILLUSION created by bankers who LENT you your money at interest!  The system at NO POINT contains enough money to pay all oustanding claims against it (lending money creates only the principal which can extinguish; it does not create sufficient money to extinguish even simple interest)!  Deflation if credit stops growing is INEVITABLE as a mathematical certainty.

At that point, you get the liquidation BY bankers to take all the interest you cannot pay.  The banks created the money lent to Greece out of THIN AIR, not out of REAL capital.

Aug 18, 2010 5:46 PM

Don't tell douchinger and the precious FRN crowd that.

Aug 18, 2010 5:53 PM

Austerity is merely code for NOW IT'S TIME TO PAY US THE INTEREST.

Look, a debtmoney system creates $100 at its outset.  It's owed $100 + interest.  The interest doesn't exist.  Deflation is built into it.  Either you pay the principal back and default on the interest, in which case banksterman takes some of your property, or else you roll the loan and end up paying all the principal back as coupon payments and end up defaulting on the whole fucking money supply in which case banksterman takes everything.

All for the privilege to have money provided by banksterman. This is the ESSENCE of the pernicious evil known as banking and Central Banking.  This is why the banking clan gets run out of every country they've ever congregated in.

All nations must by fiat eliminate their banks and central banks and go to Real Bills, production-backed currency.  Or else they will all suffer this same fate.  The money to repay the interest owed at any given point in time does not exist!  It is physically impossible to extinguish the debt.

Aug 18, 2011 1:06 AM

WN will only stay $49 as long as their fuel hedges hold out and the petrodollar keeps steaming along.

You put ROW prices on fuel and you see how rail makes sense.  I dunno about 43 fkin billion tho.

Aug 18, 2011 1:09 AM

horseshit...nobody is suggesting coast-to-coast rail, it is SFO to LAX for fuck's sake, a few hundred miles.

The goddamned TGV and shinkansen do this mileage all the time and turn a PROFIT.  200mph rail between NY and DC actually makes sense.

Aug 18, 2011 1:15 AM

if people realistically want to be getting around in 10 years, we better build the rail now while we can

Aug 18, 2011 1:21 AM

average vs top speed...110 is pretty good if the thing makes stops en route

Aug 18, 2011 1:55 AM

complete bullshit.

The prohibition was for "your brother," which means another jew.  It is an affirmative duty to lend to gentiles at interest, according to the talmud

Aug 18, 2011 1:57 AM

wth...jew has ALWAYS been an ethnicity.  JFC, don't you read the bible at all?  It is and was a TRIBE.  Judaism is just the clan religion.

The notion that jewish is a religious choice is bullshit

Aug 18, 2011 10:13 AM

Hyper, bitchez

Aug 18, 2011 10:34 AM

ditto...but the moves lately are UGLY even in this space

Aug 18, 2011 11:51 AM

geez, man, shit just happens...the collapse was not fucking engineered.  Does it give you guys some kick to fall over yourselves for Potent Directors Fallacies?

WTF, was Rome's collapse engineered too?

Aug 18, 2011 11:54 AM

it's more than that...the only refineries on earth capable of refining the taffy he calls "crude" are on the Gulf Coast

Aug 18, 2011 4:36 PM

if the EUR comes apart...what, that's #2 world reserve-ish currency?  They can't just back out of the EUR without blowing everything sky high.  And I mean everything.

Aug 18, 2011 5:59 PM

they already ARE drilling everywhere, moron

Aug 18, 2011 6:04 PM

see "Greece"...or see "about anywhere else."

The government can TRY a lot of things; doesn't mean they can make them stick.  They tax drug transactions at "jail" right now and those seem to be sailing right along.

Aug 18, 2011 6:05 PM

why in the fuck would anybody ever trade you their farm plus livestock for your stupid few ounces of silver?

Silver isn't that valuable ,nor rare.  And if the farm is not sustainable, why would you trade for it anyway.

You silverbugz are frickin idiots

Aug 18, 2011 6:13 PM

the tax the rich policies are going to extend to real estate; mark my words.  Go after those rich people's homes, the ones for $1MM and up.  The carrying cost of real estate has nowhere to go but up

Aug 18, 2011 6:16 PM

Chavez's gold, unlike comex, isn't supposed to be encumbered by any paper.  Granted, it was probably sold and leased out 10x over by now, but there's a marked difference between his demand of what is supposed to be sittin in a vault with his name on it and expecting COMEX counterparties to cough up physical off a futures exchange (which wouldn't happen anyway).

Comex is a CASH SETTLEMENT futures exchange; it is NOT intended for actual physical things anymore.  Real gold is bought from real miners who really dig the shit out of the real ground.  The futures markets exist for these real producers to hedge on a cash basis.  The banks like JPM make them pay for that insurance.  Look at the Comex/Nymex as an insurance vehicle and it starts to become more apparent how misguided the crashthecomex crowd is.

Aug 18, 2011 6:18 PM

75% of world debt is denominated in dollars.  40 years of BW has made the dollar like herpes.  You just have to live with it and the inconveniences and pain of occasional outbreaks.

Aug 18, 2011 9:26 AM

we already pretty much mined out this country.

Aug 18, 2011 9:30 AM

people know how much gold is worth because they are dumping all that jewelry and getting plasma TVs they couldn't otherwise afford or a nice downpayment on a shiny new car.  Or maybe it's the "best christmas ever" for the family as they parted with more of their wealth than ever in exchange for pricey consumer merchandise.

Gold has been steadily climbing, having some mini crashes which are good because they firm the conviction of the wallflowers that they were smart to dump the jewelry and smart not to buy into this bubble.  If there is a stampede off the sidelines, gold will double or triple from here in short order.  There simply aren't enough paper instruments to handle the volume of dollar slosh

Aug 19, 2010 10:35 AM

Playing, bitchez

Aug 19, 2010 10:37 AM

JFC look at that revenue projection graph..HAHAHAHAHAHAHAHA.

The deficit is north of $2T. 

Aug 19, 2010 10:47 AM

WTF is wrong with the Philly Fed for releasing numbers like this?  Why are they not getting with the program??

Aug 19, 2010 11:23 AM

hahahaha...who the fuck would want to fly on a chinese airliner?

They can only sell them right now and operate them in countries with shitty safety standards.  Their current premier offering is a clone of the MD80.

In 30 years, their best military jet is a ripoff of the Lavi, requiring Russian engines because China simply ISN'T high-tech enough to produce the powerplants.

For China to TRULY be competitive will require an undoing of 30 years' worth of what's brought them to where they are now, and that is ripping people off, stealing IP, copying, counterfeiting, and using their people as a slave labor force while running real estate and manufacturing ponzis.

Aug 19, 2010 11:28 AM

why in hell would the chinese want the yuan to appreciate?

It's a nation loaded with bad debts and excess leverage

Aug 19, 2010 11:34 PM

Silver is not a buy and will not run like gold until production peaks.  Spot on with your comment.

Soon as silver production peaks and begins to decline, the price rise will be as relentless as gold's.  The latest production data I've seen suggests we might be on a plateau, but until there's a YoY decline, it's premature to call such a peak.

Aug 19, 2011 2:02 PM

uh...Android is a mobile phone OS.  Crapintosh sales are a statistical blip

Aug 19, 2011 2:04 PM

how so?

Margin hikes won't suppress the price for very long

Aug 19, 2011 2:54 PM

I watch all of about 4 channels out the 500 worth of shit that is on the basic cable.  The shit on TV is just revolting these days and the average member of the public has Jersey Shore manners now.

Aug 19, 2011 8:56 PM

and, gee, who has been writing about this for a few years already?

Aug 2, 2010 10:05 PM

same thing, in not so many words, that I argued with douchinger about on TF.

Austerity means default by the sovereign.  Deflation kills debtors.

The only avenue is to either accept death now or do what everyone does and try to extend the game.  The situation is actually hopeless from a macro perspective of attempting to restart aggregate growth. 

I see no possibility of austerity and cutting; how long could such a cycle last before you're voted out and people beg Christ to print?  As long as they can monetize, they will monetize.  The elites are better-served now by that; they are head hogs at the leverage trough.

Aug 2, 2010 10:09 PM

don't believe the police state?

Look at what Gates says about Wikileaks.

GATES claims the moral high ground while the Armies he commands REGULARLY slaughter civilians...knowingly.  In fact, the video which brought Wikileaks its boon in eyeballs was precisely showing THAT, the gunning down of innocents by a 20mm chain gun.

Now I see that CNN says that the gov will go after MIT students who helped whistleblowers encrypt data...

The gov will not allow you to tell the truth.  The truth is "classified."

Aug 2, 2010 10:11 PM

huh?  and deprive the richies who own nothing but bonds of their coupon?

that would fuck them in the ass and that ain't happening, unless enough black people find themselves able to actually make payments on their mortgages

Aug 2, 2010 11:23 AM

the best part is Gates' mendacious reference to Wikileaks' disclosure as "morally wrong" and putting people in harm's way...wtf???

WTF has the war done?  For Gates to claim the moral high ground is absurd when criminality, corruption, and incompetence have placed more people in harm's way than DISCLOSING it ever could.

So showing an Apache lighting up a group of civilian reporters is placing ppl into harm's way??  Every fucking day, Gates' army slaughters innocents in military actions...the freaking deployment of troops puts people into harm's way.

But, because the gov't CLASSIFIES evidence of its criminal malfeasance, suddenly exposing that malfeasance is now the crime?

Aug 2, 2010 11:25 AM

but...but...China is the FUTURE!!!!!!1

Aug 2, 2010 11:25 PM

I love that part "don't make trouble for the government."

It's not that criminality and fraud are rampant, no...what matters is that they don't want you to bother them about it.

Telling the truth will get you locked up everywhere now it seems.

Aug 2, 2010 4:26 PM

Waving, bitchez

Aug 2, 2010 7:04 PM

bbbbut...bbbbut..China is the future!!!!!!1

Aug 2, 2010 9:42 PM

Sounds like DEFLATION to me, just like Douchinger said!

The price of everything is dropping.  Oh, no wait, it's not.

Gold at 1180 oil at 82.  Deflationary as hell, right?

Aug 2, 2010 9:42 PM

the slide in housing prices will be protracted.

There's enough fraud and sausage hiding to keep prices fluffed some as they slide

Aug 2, 2011 1:43 PM

people fall for this shit???  I mean they think WOW I am getting actual cash for this crap I don't wear?  Are they THAT stupid?

I will give them 60% of spot, sheeit.  And I will give the turncoat $1200

Aug 2, 2011 1:50 PM

eh...the friends and family were probably tickled that they "got so much" for all that worthless jewelry they had.  That enabled them to take that trip to vegas and gamble with the money.  Or get that 3D flat screen.

Aug 2, 2011 1:54 PM

people much richer than you can afford it.

Aug 2, 2011 10:27 AM

everybody spouts this "20% correction" shit.  They were saying it about the SP for 2 years.  Gold corrected down to 1490 from nearly 1600 not more than a few weeks ago.

Aug 2, 2011 11:34 PM

yeah, lord knows they don't print that or have a massive NPA problem with THEIR loans..LOL

Aug 2, 2011 11:44 PM

are you tards paying attention to the TLT?  I mean, shit bonds been goin up up up...how you can call these types of yields OTHER than AAA is beyond me.

The ridiculous yields of USTs warrant a AAAA rating, IMO.  And, yes, I am fully aware that we are fuckin bankrupt.  The market will set the paper price, fuck the raters.

Aug 2, 2011 11:45 PM

used cars are harder to find due to Cash for Clunkers, where they junked a lot of the potential used car supply.

Another dipshit program from Obama

Aug 2, 2011 2:30 PM

WTF do you think is gonna happen to the drachma, idiot?  People already prefer Euros printed by non-PIIGS

Aug 2, 2011 9:40 AM

I feel lucky that Bill Gross has my back and is lookin out for me

Aug 2, 2011 9:46 AM

Did anyone really think that the country that produces counterfeit EVERYTHING ELSE would not produce counterfeit companies?

Aug 20, 2010 11:28 AM

Yields are in secular decline because demand for money has decreased.  Interest rates are the price of money.

the Fed is probably distorting the curve with their OMOs, but they hope to get some activity by the salivating would-be speculator knife-catchers out there.

Already people are abuzz with talk of how "great" a time it is to buy, what with houses "so cheap" and rates so low.  The Fed's hope is that credit demand will pick up and then rates can normalize.  What we have here is a loss-leader teaser sale on credit.  One that the .gov is gorging itself on.

Just imagine what would happen after the gov has stuffed itself to the gills with cheap credit and then rates were to go up.  It'd be game over immediately.

Aug 20, 2010 12:17 AM

3.  Gold production peaked in 2000.  Silver production is yet to peak.

Aug 20, 2010 12:27 PM

yes, you do, you stupid fuck.  Unless you get your bread wholesale

Aug 20, 2010 12:33 PM

uh, no...oil went overboard first.

And when the euro was crashing, the POG went up a ton.

Aug 20, 2010 12:35 PM

do you even vaguely understand what will happen to the dollar in a deflationary depression?

Aug 20, 2010 12:58 PM

where the hell do you get this "8%" shit, except out of your ass?

Aug 20, 2010 4:24 PM

the other party is socialist too

Aug 20, 2010 8:42 PM

broadening divergences.  This was a great time to short in 07.  These omens were what I told trading friends to wait for before starting to get short again after the 09 bottom.

But at this point, I have to ask, how much of the HOs is a side effect of the HFT phenomenon and won't the Fed simply buy more futures to support the market?

Aug 20, 2010 8:45 PM

I made $68,000 on AIG puts...watchu talkin bout Willis?

Aug 20, 2011 10:47 PM

this is just the dumbest hysterical shit ever

Aug 20, 2011 10:48 PM

yeah, these idiots with their radiation phobia. Wildlife in Chernobyl Zone is flourishing due to lack of humans

Aug 20, 2011 11:00 PM

who doesn't want to see Obama evicted from office in disgrace at this point?  The mfer is miserable.

Aug 20, 2011 5:19 PM

we've also traded our entire manufacturing base for the goods that we used to manufacture.  And the execs of those corporations got filthy rich

Aug 20, 2011 5:20 PM

maybe the century but not any larger than the Sterling Bill, which was the lynchpin upon which the entire Imperial power of the British rested.

Aug 20, 2011 5:23 PM

no, they don't.  I can see you've never been to Brasil

Aug 20, 2011 5:26 PM

I have made reference to this phenomenon previously...and what better statement of how big gov socialism leads inevitably to concentration of power in fewer and fewer hands.  As night follows day.

Those who could not pay the taxes to support the dole and empire ended up having to sell to stronger and stronger hands.  These people became noble families some of which still exist to this day.

Aug 20, 2011 5:32 PM

Land Title is only as good as the rule of law.  If you dispute this, reference Rhodesia or S. Africa.  Land has been redistributed wholesale for political reasons to people who refused to cultivate it, let eveything go to shit, sold off all the equipment and wiring in the houses torn out of the walls for scrap, and let the fruit from trees rot on the ground.  Now, still in complete squalor and poverty, the politically connected are consolidating these parcels away from squatters who are moving back to the ghettos.

Aug 20, 2011 5:35 PM

people should watch Dr. Zhivago.  Besides being an all-time classic movie, it has a lot to tell you about the sanctity of property rights when "TSHTF."  The Party went around slapping notice of confiscation upon all land and real property and improvements and entrance was forbidden with a death sentence.  The good doctor returned from one of his impressments by one of the rival factions to find his town home also confiscated.

People who look at the gibs me dat culture we have now, with half the nation on the dole, and are expecting political parties to protect their rights are fools.

Aug 20, 2011 5:36 PM

fuck you, racist defender of an apartheid State.

Aug 20, 2011 5:39 PM

Moon landings are not important.  Diversity is what matters.  Nothing can stand in its way.  Obama just issued an order effectively freezing federal government hiring of white people.  He wants increased diversity despite the fact that blacks are significantly overrepresented in the federal payroll.  Look this shit up.

We are 365black now, NASA will get shitcanned because it is in crisis due to lack of black scientists.  It doesn't matter how far standards have to be lowered to get agencies like the USCG or USAF or SOCOM to survive their crises of lack of diversity.

Aug 20, 2011 5:45 PM

gangbangers have no interest in forcibly taking land.  They will get the government, as occured in Rhodesia or S. Africa, to simply give them the land as if that will convey its wealth to them.  Then, they will ignore the productive capacity and sell all the machinery, pipes, anything metal, the wiring in the fucking houses, for scrap and burn it on drugs and liquor.

But this will move us towards more diversity of land ownership which is a good thing.  In a contest between starvation and poverty, and diversity, diversity MUST win.  It is all-important and the only thing that matters.  The Mao Luther King statue should be taller.  MLK is the most significant person who ever lived.  He invented dreams. 

If shit goes this way, you'd better HOPE there is anarchy because the political machinery will INEXORABLY move toward a feudal empire of the politically connected.  The armed gangs roving the countryside is a more favorable outcome than a functioning government confiscating everything to give it to a failed race.

Aug 20, 2011 5:47 PM

they didn't PLUNDER much of shit.  The gold that came back came primarily from MINING OPERATIONS that the natives had no fucking clue whatsoever how to effect.

This is like how Rhodesia was a net food exporter because a successful minority race appeared that had mastered the hard work of organized agriculture.  Now that this minority has been dispossessed of the land, the failed majority is in charge and we see utter economic collapse.

Aug 20, 2011 5:52 PM

why should ANYONE CARE?

The injuns were doing NOTHING with the land. They were thieves and squatters.

If the white man hadn't taken it, you wouldn't be posting this drivel bullshit on your fucking couch in your climate-controlled room on your fucking computer.

Go back to the land, live with parasites and curable diseases.  The average life expectancy of an injun was what, 35 years?  THAT is the people you would entrust with land?

Look, I know it really sucks that the races aren't all equal, that some are successful races and some are failures.  This is simply darwinist evolution, ok?  The same as how various species of plants and animals systematically exterminate each other.  This is how mammals came to be and vertebrates before them.  It is a part of the cycle of life.  We cannot hold back progress to placate the egos of members of failed races.  They must be pushed aside.

Aug 20, 2011 5:53 PM

I'm sure the first comment in reply to you mentioned Jevon's Paradox.  You'd be wise to make peace with it

Aug 20, 2011 5:54 PM

no, we really aren't seeing anything of the kind in Africa until/unless the black death comes there and culls the population.

Aug 20, 2011 8:40 PM

yeah actually I have...and you have still never been to brazil if you believe that 99% of the population lives in favelas

Aug 20, 2011 8:51 PM

it's possible, why?  What, because you imagined it?  ROTFL

Aug 20, 2011 8:53 PM

as well he should have...his statement about QM is correct

Aug 20, 2011 8:56 PM

Flak, stop SHITTING on people with your goddamned maths and thermodynamics and shit.

You are part of the problem because you just don't BELIEVE hard enough.  We need EVERYONE to wish TOGETHER as strenuously as possible, and only THEN, with the power of imagination and the human mind, anything will be possible, even the impossible.

Aug 20, 2011 9:00 PM

You are here defending a racist, apartheid State.  That makes you a racist.

Now kindly go fuck yourself.  I hope that the looting starts, it's time to put people like you in piles to be burned.

Aug 20, 2011 9:03 PM

you accuse me of racism and yet defend a racist, apartheid State?

Who the fuck said I voted for Odumbshit?

Aug 20, 2011 9:06 PM

The Greeks mastered the written word, mathematics, and the wheel.  They had large cities and built architectural monuments which still stand.  The injuns did what exactly?

The Greeks weren't a bunch of nomads roaming around and extincting indigenous species.

The rest of your post is just trash.

Aug 21, 2010 3:32 PM

All those words just to say "we're fucked"???  What happened to the laconic?

Aug 21, 2010 4:28 PM

Pretty significant when feel-good life coaches are saying GTFO.  Either going to move momnpops or is a huge contrarian indicator

Aug 21, 2010 4:56 PM

the debts are unpayable.  Either they will default or they will be liquified.

In the face of this, it seems wise to go heavily into debt and wait for jubilee.  This course is not without risk but seems to have paid off.  That fuckin Real Housewife bitch just filed BK and then went on a $60k shopping spree.  It seems like nobody is gonna repay

Aug 21, 2011 1:32 PM

yeah, this stuff is idiotic...as if growing money will grow the economy by magic

Aug 21, 2011 9:01 PM

huh?  It sucks to be black regardless.  Think about it, if you are average, your IQ is about 85, and you have 10x the propensity to commit violence as whites, and probably 80x that of asians, both of whom have an average IQ one sigma to the right of your mean.  About 4% of blacks annually are ready for college and only about half graduate high school.  Your likelihood of being arrested in your life is 50/50 and 33% of black men do serious time at least at one point.  Roughly half of black women have herpes.  It's simply impossible for you, as an average black kid, to ever hope to integrate into what the majority here refers to as "civilized society," because as Jared Diamond put it, your original environment selected away from civilization.

The lies told about Soetero and the rest of this bs are insignificant compared to the reality of genetics and evolutionary biology.

Aug 21, 2011 9:02 PM

who was it who had said NATO was surrendering and losing?

Looks like yet ANOTHER win for the warhawks.  Huge feather for France, who led this invasion.

Aug 21, 2011 9:09 PM

this shit serves notice that there is a 2nd nation with significant enough force projection capability to knock over most dictators.  We can stoke revolution in any nation now (bc there are always significant opposition factions in any backwaters) and with our or France's CVN, project air power sufficient to cripple your ability to repel rebellion.

It's really that simple.  A demonstration, if you will.

Aug 21, 2011 9:14 PM

potentially the stupidest thing I have ever read....

Aug 22, 2010 11:40 PM

we're not short on jews, send them over

Aug 22, 2010 4:06 PM

moral theft?  That's a peasant mentality.

You have no moral obligation to repay debt.  It is a contract matter, purely business.  The bank never actually had the money that it lent to you anyhow.

Aug 22, 2010 4:11 PM

not unless you can buy a bunch of hard to find physical assets and then default

Aug 22, 2010 4:17 PM

good lookin H&S pattern there

Aug 22, 2010 6:47 PM

Unfunded, bitchez

Aug 22, 2010 9:20 PM

Finally, bitchez

Aug 22, 2011 10:05 AM

yeah, they just came right out and said it...

Aug 22, 2011 11:25 AM

Monetize bitchez

Aug 22, 2011 11:45 AM

this must be the tailwind to the Gold price

Aug 22, 2011 11:51 AM

the debt-money system makes printing inevitable when credit cannot grow organically.

This is very simple math.  Debtmoney exists in a state of defacto default at all times.  The only thing preventing a great unwind is the expectation that the future will hold more borrowing.  If it does not, the interest owed on existing money begins to cannibalize the monetary base.

If the Bernank is smart, he will be seen as the Mises or Fisher or Keynes of the next century for his "monetary phenomena in CONTRACTIONARY economic climates."  Literally, this is greenfield for the economics profession.  Nobody has ever studied anything other than growth.

Aug 22, 2011 11:56 AM

at least Geithner is so short he won't have to get down on his knees to suck Pelosi's dick

Aug 22, 2011 3:02 PM

I can't agree with that...certainly monetary collapse was at hand.  But that doesn't mean the lights have to go out.

Aug 22, 2011 3:03 PM

A lizard

Aug 22, 2011 5:50 PM

the immigrations policies of the indigenous nations did not make such settlement illegal.

Aug 22, 2011 5:56 PM

the sheeple will never awaken, nor would you want them to

Aug 22, 2011 6:00 PM

huh?  These guys are jews, not whites

Aug 22, 2011 6:01 PM

and the NY DAs are recommending dropping all charges against DSK...free man

Aug 22, 2011 6:01 PM

DSK is cleared, free...charges will be dropped

Aug 22, 2011 6:59 PM

yeah, I saw 14-period RSI in excess of 80 today, which is pretty overbought.  Last time it went up to these rarified heights it traded mostly sideways after a correction, for a period of 2 or 3 months

Aug 22, 2011 7:00 PM

how about the days when you could get 3 oz and remain under the Patriot Act limit?  You can almost not get one now.  It hits 1950 and one ounce will require documents

Aug 22, 2011 7:04 PM

and the deer in lights pic has got to be on that.  If we can get Keanu to say "bogus" in his Matrix togs along with it, that is epic mark-out moment

Aug 22, 2011 7:07 PM

more interesting than the dollar price is the price in other currencies.

You've got 4 digits in everything (sounds like my previous gf lol), 146k yen (strong yen?), 1329 EUR, 1159 GBP, freakin 3059 reais (from a trading range down in the 2200s before this breakout)...gold is just cranking momentum in all currencies at this point.

Aug 22, 2011 8:19 PM

huh???  I said you USED to be able to get 3 oz under the limit.  The Patriot Act requires ID documentation and a paper trail at $2000

Aug 23, 2010 1:02 PM

inflation = decrease in value of money with respect to goods and services.  CAUSES: increase in money supply, decrease in faith in currency.

Deflation = the opposite.

The FRNbugs or deflationists don't seem to understand how this will work.  Credit is deflating.  However, most production is debt-driven.  As debt goes, so goes production.  Normal supply/demand laws with respect to remaining production means prices STAY UP.

The FRN will NOT ever be precious.  Anyone stockpiling the paper notes of a bankrupt state is a fool.

Aug 23, 2010 1:52 PM

these are monetarist definitions...and who fkin cares?

What does it MATTER if money supply increases or decreases EXCEPT in what the EFFECTS are out here in the real world?

The fundamental question and argument is whether stockpiling the paper notes of a bankrupt State is a good idea vis a vis stockpiling a shiny metal or other real asset.

At some point when credit-driven production gluts are worked out, new supply will not manifest at affordable prices.  How many McMansions can be sold in Detroit?  There's no INCOME for them and the fundamental energy and materials costs requisite to stand them up cannot be made to be zero.

At some point, products sell for cost of construction.  And production declines.  It's as simple as that.  Those waiting for their FRNs to fetch a house based on oil at $5/bbl will die broke.  Economies can be wrung out, such as manufactured housing, but the fundamental lumber and materials and energy have real costs associated with them that the endeavor CANNOT be sold below.

Aug 23, 2010 1:56 PM

gold is at $1227.  It still has value.  Even a McMansion hasn't gone to 0 like pets.com or tulip bulbs or your IQ

Aug 23, 2010 11:46 AM

Precious dollar bugs take note.

If dollars become THAT precious, they gonna just take them from you.

Aug 23, 2010 11:55 AM

yes, we should imitate the EM and pretend that activity here is still as profitable as there.

We should pretend that our oilfields aren't tapped out and that we can just print our way to profitable extraction, just like the of-yet untapped EM fields out there

Aug 23, 2010 2:02 PM

Except in this case, he is CORRECT.  He is merely repeating me.

There is no demand for money at 4%.  There will be even less at 18%.

18% is a recipe for the most savage deflation you have ever seen or ever will see, precipitating immediate collapse.

The other guy posting about debts getting sold off is why high rates are associated with inflation when in fact they are deflationary by themselves.

Rates CANNOT go organically to 18%.  They are already ridiculously low and there is STILL NO DEMAND.  The banks and Fed are *following* the market.

An artificial rate regime at 18% would destroy everyone who has any paper.

Aug 23, 2010 6:25 PM

Dude...let's take a step back and look at this.  Deflationists seem to miss the forest for the trees.

The USG is the most heavily indebted entity on the planet.  How would THEY be able to tolerate deflation?  It'd kill them as surely as it nearly killed every levered player in 2008.

The USG can incontrovertibly not repay ITS debts.  How the hell can the FRN maintain worth in the face of that?  I understand that the "math" says that the FRN becomes more worthful as deflation sets in, but this simply defies any common sense or intelligence, because the FRN is the note of a bankrupt sovereign and a bankrupt central bank.  Only in bizarro world can that become more worthful.

Eventually as deflation continues to grind, confidence in the FRN will evaporate.  Military or not.  Nukes or not.  Reserve currency or not.  And then it is all over in a heartbeat.

Is that TODAY?  No.  Obviously not.  Is it coming?  Of course, just as surely as a Pound Sterling is a fraction of a pound now (11 pounds to the ozt of Ag) despite the UK having suffered "deflation" in the 1930s and god remembers how many wars and the South Seas bubble and all that shit along the way.

The Pound's march toward ever-smaller fractions of an ACTUAL pound of sterling silver has been RELENTLESS.  So shall it be with the dollar.  By hook or by crook man.

Study freakin history.  Deflation precedes devaluation as surely as night follows day.  It is the ONLY way to make the math work.  I marvel at precious dollar FRNbugs, I really do, thinking that this time will be different from every other time in history and the FRN will simply live forever.  It won't.

So, you can either prepare now for that or try to be a vulture and pick up wallets and cellphones and watches DURING the panic stampede out of the burning nightclub.  FRNbugs must fancy that there is some exit that the rest of the patrons don't know about, or that they are fireproof, or Batman.

Aug 23, 2010 6:40 PM

What was so bad about Hitler compared to all the other leaders back then?  He didn't do anything the rest of them wouldn't and didn't do.  Germany wanted rid of their banking clan and all their cousins.  Had Ben Gurion not been interested in making a political play for international recognition, they all would have moved to palestine.

Now, it turns out that Germany has a saner fiscal posture and policy, is not a warmongering imperial nation, they've gotten back to essentially protestant values of work and community.  They are one of the pillars of stability now in the world.  Nations with large tribe contingents are still warmongering and running confetti ponzis.

I mean, how many Germans did WE kill?  How many did the Soviets?  It was bad to be a polish woman during any part of this war, and the Soviets invaded, occupied and pillaged most of eastern europe for 40 years after the war.  Looking at the relative carnage, Hitler just doesn't make the grade as far as psychopathic dictators go, not compared to some of his contemporaries and many others throughout history.

Aug 23, 2010 6:47 PM

Um, JB, the "reserve currency" has no intrinsic value.

All it has presently is our stranglehold on the House of Saud and our occupation of the ME.  Neither of these is immutable.

Perhaps we will see a roman-esque multicentury decline, but that's anybody's guess.  But the fact that the FRN is reserve is meaningless.  It has no value beyond confidence in it and our military extortion racket.

As WW2 proved, nations can rise from poverty to world military power in relatively short timeframes.  A few better strategic concessions here or there and the Axis powers could have easily avoided destruction.

ALL paper currencies go to zero; this is an axiom.  The Pound Sterling...you know why it's called that, right?  It's what it originally was.  READ it.  Now tell me how much sterling a GBP fetches today.  It went from reserve to not, has survived the death of the Empire, depressions, bubbles' bursting, etc., sure it's still worth something, but it ain't buying you no pound of sterling anymore.

Aug 23, 2010 6:52 PM

Are you fking stupid?

What did FDR do to the dollar during the Depression? 

Idiot.  How much sterling does a pound now fetch?

Fiats' march toward zero is unabated.  The interest on today's debt doesn't exist, man; it HAS to be printed.  The type of en masse repudiation that money-supply-consuming deflation will cause will render the values of debts worthless.  PAPER claims will be worthless and that is what the FRN is.

WTF good is a debt note obligating someone to pay you a sum of FRNs if the FRN has become "priceless"?  The debt will simply NOT BE PAID and your claim is a bagel.

Meanwhile, debt-driven production will drop and prices of consumables and past-peak commodities will march higher

Aug 23, 2010 7:05 PM

This is easy.  I been meaning to create some content on how oil and credit work, but just been too lazy.

anyhow, the 2007 oil runup was fueled by the fact that global consumption had exceeded global production for a prolonged period following the world C&C peak in 2005.  Inventories were under relentless drawdown.

Then, the credit cycle peaked as $140 oil simply rendered a LOT of shit totally uneconomical.  Just couldn't be done with those types of energy costs and the market prices that could be supported.

And I mean ALL kindsa shit, airlines, buses, taxis, everyday food related and ordinary things.  Uneconomical.  fuckin PIZZA delivery.  It cut into every margin everywhere.  FEDEX, UPS.  ALL started charging fuel surcharges to preserve margins and in some cases any profitability at all.

And this price increase across the board caused people to walk and get their own pizzas.  Demand collapsed.  The US cut daily oil consumption by 10% in fact from 20mbpd to around 18.  Consumption fell well below production, consequently, there was a glut.

But the price fell so low that it fell below the breakeven of nonconventionals, which bottom in the high $30s/bbl.  This caused that activity to be uneconomical so it got shut in.  Production dropped.  Slack capacity went away, up goes the price again.  Simple as that.

No conspiracies and no evil speculators necessary

Aug 23, 2010 7:39 PM

Argentina, MFER.

You trade it for whatever paper is when you need PAPER.

You do not dump the whole fuckin lot of it.

You trade it for things, ONE OF WHICH could be paper.  Wanna stockpile cattle, go ahead?

I'm not a goldbug.  It has no special magical properties other than people want it, just like a lot of other shit I may or may not agree with.  Diamonds for example.  USELESS when they are flawless and colorless.  Industrial use as a cutting or grinding tool.  But go figure, people highly covet the ones without color and inclusions.

If you wish to stockpile oil, hell, I would LOVE to do that, but can't.  Can't stockpile uranium either.  Cattle not so much, chickens, etc.  But SOME alternative to paper.  And if you NEED PAPER, you SWAP assets for paper.  If you need chickens and you have cows, SURELY even you can figure out how you could make this happen.

Aug 23, 2010 7:51 PM

JFC, you are ALL IDIOTS.

The money does not get destroyed.

The money already paid for the house and paid the builders and got redeposited elsewhere.  What got destroyed was the value of the debt obligation in real assets.

THAT is inflation, actually.  Debt loses its moneyness that way.  Defaulted debts stop fetching as many real things as they used to.

Everyone who doesn't understand the mechanics of monetary creation and even what inflation or deflation are should STFU, seriously.

That includes Mako, who speaks as if monetarism is an axiom.  IT'S NOT.  in fact, the QTM is the most ridiculous piece of rubbish in history.

Aug 23, 2010 8:03 PM

gosh, this is just BAD.

Don't equate money and debt if you don't mean to.

A defaulted debt is worth less than a non-defaulted one.

The ONLY way for money to be destroyed is for loans to be repaid.  THAT is what is occurring, a decrease in system leverage, or debt outstanding.

Interest cannibalizes the money supply and destroys money, default does not.  WTF does it matter if the fucking bank's asset sheet goes to 0 when they conjured the money in the first place?

In fact, what you end up with is UNBACKED NOTES in circulation, whereas they were formerly backed by a payment stream derived from real work or production.

For the life of me I do not understand why you guys see cascading default as deflationary.  It's not, it never has been.  Systemic default IS hyperinflation.

FRNs are only useful for repaying debts denominated in them, of which every single FRN came into existence as a result of.  If a debt security no longer commands FRNs, it has no worth.  you sure as shit ain't gonna get someone to trade gold for it.

This is precisely WHY we are seeing what appear to be BOTH inflation and deflation at the SAME TIME.  WTF, do I have to write a treatise on this shit?

The bottom line is that mainstream economics, DOUCHINGER AND MISH too, are WRONG.  They do not understand the fundamental nature of debt, the fiat notes conjured as a result of debt, and least of all how money is destroyed.

Fuck, if you can't get basic accounting right, and what is a liability and what is an asset, then how can you be expected to understand larger concepts?

If a bank lends $100, they have a note saying "IOU $100."  The borrower has $100.  There is not $200 in the system.  There is $100.  If the note is defaulted upon, the value of DEBT goes to 0.  Insofar as money and debt are fungible, there are concomitant deflationary effects.  But as this proceeds to a systemic level, debt starts to lose moneyness.  When this occurs, the notes BASED on the debt whose purpose and existence depend upon the debt, begin to lose theirs too.

Aug 23, 2010 8:06 PM

this is because the Fed is desperate to preserve the moneyness of debt.  USD debt is their only product.

Aug 23, 2010 8:12 PM

Only one asset has gone in one direction, and that's the DOLLAR, you fucking moron.

How many pounds does it cost to buy a POUND STERLING now?

Britain had the reserve currency and the world's strongest military and was the largest empire the world had ever known.

Tell me how many pounds it takes to buy a pound.

Aug 23, 2010 8:18 PM

nothing at all wrong with this...TALLY STICKS.

The essence of FIAT.

No requirement here to BORROW from a bank to get the notes.

CA issues them and then taxes them out of existence.  Money without interest.

Aug 23, 2010 8:28 PM

CHF busted out Hungary.

This is the inflation/deflation that Jefferson was talking about.  Switzerland gonna own Hungary on paper.

Aug 23, 2011 1:40 PM

uh...that famine was as a result of a German blockade.

if the oil "runs out" you're gonna need more than a fuckin garden.  everybody is going to need 5+ acres.

Aug 23, 2011 1:44 PM

lol...ever actually BEEN to yugoslavia?  Belgrade is still there, as are all the other cities.  Fuck, even Beirut is still there.

People who lived in the country got run off their property by advancing albanians and kosovars.  I know bosnian serbs who went from having all of this property you speak of to living in a car just due to the vagueries of war.

Putting a tent stake down is not a good idea...and if you want power and lights and protection from warlords for the most part, the city is where you end up - JUST LIKE IN THE THIRD WORLD NOW where things are already in many cases far enough gone to begin with that they look like MadMax to the average American.

I wonder wtf you guys do with your vacations if not travel and see places.  There are right now, today, a ton of areas where people are living in what you would consider madmax. 

Aug 23, 2011 10:26 AM

...in case they have to leave the euro and need to support their currency.  Duh

Aug 23, 2011 12:21 PM

The cities are the place to be because that is where the political power lies.

The rural areas lack the votes to even keep the food they grow.

ANYONE who says to retreat to a rural area because there is food there is a fool.  They think food magically grows itself in the absence of petrochemical agriculture?  In Argentina's collapse the lights stayed on in the city, police services stayed in the city.  These things were often nonexistent in rural areas because those people lack votes and power.

The notion that city dwellers are going to roam the countryside looking for food...where does this stupid shit come from?  I am tired of idiotic articles like this from TD day in and day out from morons thinking we collapse to MadMax and everything just goes to shit and you can hide in a bunker somewhere with a bunch of canned ham.

Aug 23, 2011 12:38 PM

well fuck, they stuffed CFC and MER inside BAC, wtf did they expect when these rats finally chewed their way to the light?

Aug 23, 2011 3:34 PM

i'm looking in everyone's yard and I am not seeing any.

Perhaps you might wanna look up petrochem agro for a bit if you want to get a reality check.  Growing enough food to feed yourself without it is backbreaking work which requires dawn to dusk effort not just from you but from the kids as well.  This is why we have shit like daylight saving time still and why kids used to go out to work the farm with the dad at dawn.

It's time to get the fuck real, seriously.  If TSHTF like you misanthropes salivate for, you're going to die very quickly.  Luck is the only thing which helps in a catastrophe of that magnitude.

Aug 23, 2011 3:35 PM

I would bet a krugerrand that if we peeked under the covers of your stupid little farm, we'd see petrochem as far as the eye could see.  In the shit you run your tractors on, the shit you feed those animals, and in a million other places.  You're doomed.

Aug 23, 2011 3:38 PM

and of course you don't EVER use electricity provided by some distant power plant?

GFD will you people just think through shit?  You actually sat down on a fuckin computer and typed this out and posted it on the internet to say that you can ride everything out in a small village like frenchies a century ago?

Aug 23, 2011 3:50 PM

you and tyler are stupid.

Lake Anna RIGHT NEAR THE EPICENTER has a NPP, only built to withstand quakes about this powerful.

NYC is not the freaking world

Aug 23, 2011 3:55 PM

no fkin shit...do people think that bc Indian Point is near the ALMIGHTY new york fucking city that it is the ONLY NPP on the east coast?

Lake Anna is known for good waterskiing precisely because of coolant flow from the NPPs there.  It's like Indian Point is the only plant anywhere near anyone...because of WALL STREET OMFG

Aug 23, 2011 3:57 PM

the geology is different here...quakes propagate significantly further and with less loss of energy over distance

Aug 23, 2011 4:01 PM

I wait for him to claim he inherited the earthquake

Aug 23, 2011 4:03 PM

that, like everything else, is Busch's fault

Aug 23, 2011 4:08 PM

does a homo like bama strike you as the chicken and waffles type?  Mfer didn't even know how to order a burger

Aug 23, 2011 4:10 PM

yeah, it only looks shitty up close.

We won't know if Lake Anna NPP cracked and is venting Cs137 into the metro area for another week or so, surely.  Shit, I really should have picked up a geiger counter for a bd present

Aug 23, 2011 4:23 PM

well if we see it go pop like fukushima, I am DEFINITELY outta here

Aug 23, 2011 4:25 PM

and you've proven beyond any doubt that you are not the sharpest tool in that shed

Aug 23, 2011 4:33 PM

you look into that number a bit and you see how bad it is.  45% *strongly* disapprove.  At this particular point, a dead dog could beat him.  Rasmussen polls LVs, not the general public, and his results typically bullseye.

A 45% strong disapproval is nearly an electoral loss in and of itself.  A couple more percentage points and you cannot win.  Busch towards the end of his reign had ratings in the -30s, which is spitting distance away from here.  Some of the ethnic data is suggesting all time low support among hispanics.  Obama appears to only have the worst of the YT guilt crowd libtards and the black bloc going for him as strongly favorable right now.  Gallup has him at nearly 90% approval rating from blacks.  32% whites, 44% hispanics.  Gee, which group is out of touch?

There simply can be no common ground and several people here need to wake the fuck up.

Aug 23, 2011 4:49 PM

this article is nonsense...gold was technically overbought and there were a number of us looking to short it.  I had planned to enter short today but the drop began overnight and I just couldn't find my price

Aug 23, 2011 5:00 PM

why do you think I refer to GWB as "Busch"?  I am not misspelling it unintentionally

Aug 23, 2011 5:01 PM

yeah, bc with Tiger in the tank, the PGA and all the guilty YTs all over the country need their Great Black Hope back

Aug 23, 2011 5:05 PM

you guys can't help but find a conspiracy everywhere, can you?  The polling results matched what the outcome was in the past few elections.  The fraud that existed came out of paper counties and democrat-heavy cities.

Aug 23, 2011 5:14 PM

i blame black people for things they are to blame for, moron.

As far as faith in the currency, that's horseshit so far.  I expect that somebody has been printing somewhere, explaining gold's strength in all currencies.  Or maybe everyone is.

Aug 23, 2011 5:16 PM

are you talking to ME, jackass?

Gold had a 14-period RSI in excess of freakin 80.  It was making a 2nd top on clear technical divergence from the previous one.  Simply a matter of moving too far, too fast.  In fact, I said this on the gold thread YESTERDAY.  If you were paying attention, you could have made a lot of that worthless fiat which gets you more stupid silver Eagles yesterday than today

Aug 24, 2010 10:25 PM

of course this will happen.

If you put food in front of animals, you'll draw more of them.  They'll multiply with the abundance.  Put a whole bunch of shit out and see how many more flies you get.

But this won't save the fish in the near-term.  The death to various animals and whatnot will continue, however, the Gulf will right itself eventually.  Fishing will have to be destroyed just like it was in a lot of the Pac NW when the clearcut soil runoffs choked the spawning grounds.  Nature will clean itself up eventually.

All this kvetching over species is a bit misguided.  There's a high probability that within the next 100M years, 75-90% of species will get wiped out.  It's happened every so often on this planet, big dieoff events.  So we shouldn't weep for "Mother Earth," she will outlast us.

We've multiplied as the oil production curve has permitted us too. Study graphs of world population overlayed atop the coal and oil ages.  We've grown like these bacteria will.  And when the supply peaks, their population will crash.  In fact, a study of the rapid growth and subsequent collapse of bacteria populations as they outrace their energy supply should be something that we study and enact public policy on.

Next time I hear someone condemn Bama's science czar for being a eugenicist or wanting to sterilize people, I may shit bricks.  WTF else is our alternative?  We cannot keep growing forever and the consumption glut in the West that has led to lower population growth cannot continue indefinitely.

There's a reason that this blessed plot now supports more than 300M people when the injuns numbered only a fraction thereof and it wasn't because they were at ALL in "harmony" with the land.  Every large land mammal on this continent was extincted within the last 10,000 years, anything bigger than a bison.  You can see their fossils at natural history museums.  The peace-loving, nature-harmonious, noble savages had a hand in that.

Aug 24, 2010 10:33 PM

Screw that.  don't be a masochist.

This situation here is like GS and the elites are the nurse AND the person who lit you afire.

If pain comes of its own accord, then fine.  But we've had our assholes ripped open by these rapists and now they want to dump a full container of Morton's onto it.

Let THEM suffer.

We have too many "austerians" who nothing more than misanthropes.  NONE of this is necessary.  Sure, we need to adjust, but we do not need to have a trial by fire.

Aug 24, 2010 10:39 PM

two things:  one, I am AMAZED that there is any money at all in Illinois pensions, that the governors there haven't looted it, all the ghetto pavement apes and their less-pigmented enablers, the whole fucking lot of them, crooks.

Second thing is look at what GS is doing...look at what wall street is doing.  Encouraging the pension trustees to go for fucking broke; they CANNOT STAND that there is money out there somewhere.  These IBs EXIST to find people with money and bust them out.

Wall Street has to go, the parasitic banking clan has to go, the entire industry of usury has to go, and if it means ovens, then so be it.  They WILL NOT STOP until there is mass starvation and they are made to stop.  Because they don't fucking CARE about anyone other than themselves and their cousins.  Not a fucking whit. 

The Street will attempt to take every dollar from everyone it can find, even if it has to BRIBE every trustee directly to get them to sell their pensioners into poverty.  The Street MUST GO.  And take the Fed with them.

Aug 24, 2010 10:51 AM

goled bitchez just took a big spike $20 straight up

Aug 24, 2010 11:02 PM

Bubble, bitchez

Aug 24, 2010 11:08 AM

it's behavin like somethin i wish I had 1000oz of

Aug 24, 2010 2:45 PM

correlation, bitchez

Aug 24, 2010 3:19 PM

China's currency intervention is runnin on 30 years now, been doin fine

Aug 24, 2010 3:33 PM

Need to print more yen.

But everyone in debt (everyone) now needs a cheaper currency.  Those NOT in debt need a cheaper currency to keep their export ponzis going.

So, everyone should peg to the dollar and import OUR inflation.

Aug 24, 2010 3:39 PM

count me in, too.  Tho the A320 is ok, the rest of them suck.  Prefer GE and that this thing was made 100% here. 

But this whole shit about floppy wings, gfd half the planes aloft have composite wing sections now.

We'll see how well the "globally sourced" shit works out; so far, not as well as hoped.

Aug 24, 2010 3:55 PM

jealous?

Aug 24, 2010 4:29 PM

This is superficial.

I've tried in many instances to explain synthetic debt so I'll give it another crack.  The CDS sellers did not hang onto the coupon.  They securitized it.

This technique permitted net notional outstanding and credit to grow far in excess of what any real economy would have permitted.  It also goosed the shit out of GDP.

There were derivatives based upon equity tranches of CDS payment streams.  Nobody has any fucking clue where this paper trail runs, but these toxic shitpiles are out there all over the world, just waiting to implode if not liquified.  CDSs are like bonds in reverse, except without the capital.  They are ideal for synthesizing securitized debt instruments to maintain fee flow.  They've been a license for Wall Street to print fucking money.

Only idiots like AIG were stupid enough to not net out.  GS stands only in the middle of most of these things, having written the CDSs then tranched and sold off the payments, taking fees and a skim with them.  These mfers even tranched up tranches.  Pile a bunch of equity tranches into another CDO and call the supersenior of that CDO^2 AAA+.

This is what grew credit and how the banking titans got rich...by manufacturing demand for FRN product far beyond the organic demand, creating their own credit originations and skimming the flow of money across their derivatives desks.

When the music stopped, they all nearly died not because of real exposure but because too much of this shit was clogged up in their off-sheet SIVs.  None of them had stopped the manufacturing of debt and they were on-hook for liquidity events as a result of having to service product in the middle stages of manufacture.

Think of it like this...a drug dealer buys a lot of raw material for meth on credit.  His meth lab gets blown up or burns down.  He's got a liquidity problem.  That's literally what happened to Wall Street.  The end market froze completely and they still owed for the raw materials in their SIVs.

Aug 24, 2010 4:30 PM

An actual pound of sterling has done well against the Pound Sterling over these last 400 years

Aug 24, 2010 4:33 PM

this number omits the losses buried on the Fed's balance sheet.

It also overestimates Fandie losses

Aug 24, 2011 1:04 AM

then, to be blunt, you're both myopic and stupid.  Both are probably willful.

Black violence rates are higher across all socioeconomic spectra...in fact, rich blacks have crime rates (and average IQs) pretty close to lower-rung whites.

Simple facts.  Economics and education?  Well, you might want to look at adoption studies where ghetto kids are adopted into upper class white familes.  Do you suppose they tend to do as well as their adopted siblings who are naturally born from the parents or do you suppose they trend more toward their biological heredity?  And, on the flipside, east asian kids adopted into white families (again, POOR AS SHIT 3rd world asian kids) tend to do...drum roll...BETTER than the white kids!  Again, nurture or nature?

I've got bad news for you: it's the latter.  Maybe it is epigenetic but it is STILL hereditary.

Aug 24, 2011 1:08 AM

not when the federal gov't disproportionately promotes blacks on the basis of skin color.  The black middle class in the USA is an artificial gov't creation.  And, Obama just froze hiring for white people.  Well, he didn't say that, he froze hiring until more diversity could be promoted.  Simple problem though is that blacks are grossly OVERrepresented on the federal payroll.  In some agencies, they occupy half the positions (inc GSEs like FNM and FRE).  But Mont Cty isn't majority black...PG might be and now it's a clusterfuck

Aug 24, 2011 1:09 AM

you keep pissing into the wind against me RNR...you had your chance with the cards and blew it; just not fast enough.

You call me out on nothing, boy

Aug 24, 2011 1:15 AM

LOL...I like that.

But, the reality is that I go with the TRUTH irrespective of its popularity.

Look at my junk rating for suggesting gold was technically overbought...it WAS.  It's inarguable that it was.  It needed to correct. 

These same idiots were frothing with mosely-claven over silver and MANY of us were warning them not to jump into that pool headfirst, but to wait a bit.  And they bit our heads off.  And then look what happened.  The clavens were wrong, and they led fools off a cliff.  Had those pumpers simply said wait for the correction, they'd have gotten their lemmings WAY more physical silver for their fiatscos.

ZH has its own orthodoxy and its own set of echoes in the chamber.  At times I may hold a opinion (based on truth) which is consistent with this orthodoxy and at times I may not.  It is not that I am being unreasonable; it is that you suddenly do not want to hear the truth.

Aug 24, 2011 1:19 AM

you fucking bitch, you led those people OFF A FUCKING CLIFF at $50.

It's taken HOW MANY months to crack 40 again?  Dead money- they would have been better-served by saving their fiatscos and trading them in for silver which is miraculously STILL available when it bottomed in the low 30s.

Reading you cast yourself as fuckin ZORRO or some kind of hero to the sheep...wtf.  You are their worst enemy- a fool leading the blind.

Aug 24, 2011 1:31 AM

who were those greatest people?  The Wrights?  Edison?  Tesla?  Newton?  Archimedes?

The problem here that we have is that actually nearly ALL of the people who are controlling finance and media ARE jews.  This does not mean ALL jews control finance and media as our ostensibly jewish friend the BK lawyer apparently isn't in the right synagogue.

However, I'm sure we can find ample nepotism in his background, but obviously not enough to get him to plutocrat.

Aug 24, 2011 1:35 AM

here you are again salivating at the chance to be an oligarch...you piece of shit

Aug 24, 2011 10:01 AM

yes, WW2 was an elective war for us.  There is 0% chance Germany would have ever invaded the USA and 0% the Japs would have either.  Germany lacked the navy and Japan lacked the army.

The tide had already turned on the Germans after the destruction of 6th Army and they were defeated on the Eastern Front long before we entered the war.  Yet we congratulate ourselves for winning WW2.  Sure, we did defeat Japan but we did not win the war in Europe.

Aug 24, 2011 11:38 AM

wtf?!?! just yesterday you called me stupid for suggesting gold was overbought...put your tits away and STFU

Aug 24, 2011 11:54 AM

QE will have to be in concert with the ECB; we simply can't just print the dollar without totally fucking all the FX crosses at this point.

Aug 24, 2011 11:55 AM

and yet here you are aping me...go figure

Aug 24, 2011 11:59 AM

the real problem is this:  the Fed is willing to print but not in the quantities that the politicians seem to expect.

the bernank has REPEATEDLY called for some fiscal discipline on the Hill and they told him to go fuck himself.  Bernank deals with his banker peers across the world who are like wtf bitch you are killing our export sector, but the politicians deal with each other and constituent cronies who bribe them (sometimes these may be bankers).

The bernank has sovereigns to answer to, as opposed to just Wall St.  When the Congress went into the debt ceiling like they did, and emerged with NOT ONE DOLLAR worth of real cuts, and instead expecting (along with Bama), $2T deficits until the next admin, when they will likely go to 4, then 8, etc., the Bernank may be having to cut off the punchbowl a bit.

Aug 24, 2011 12:35 PM

yeah...the 10 year projection is forecasting deficits, what...1/3 of what they are now?  How in the fk is this gonna happen?

And the revised case is $350B/yr?  GTFO here with that BS, CBO

Aug 24, 2011 12:42 AM

the engineers I know...all of us were talking about this shit before the internet existed.  Hell, back in like 1995 I said that the only way out was printing money.  Were you even potty trained then?

Aug 24, 2011 12:43 AM

I can't say what needs to be said in 3 paragraphs or less...

Aug 24, 2011 12:50 AM

ROTFL...South Africa?  With a homicide rate higher than that in IRAQ during the war?  WTF are you smoking, crackhead?

DeathofJohannesburg blog...look at that shit...there is your success?  Where?

Incarceration rate low because the police do SHIT.  Murder rate twice as high as even Detroilet, and then some.  South Africa WAS a success just like Rhodesia WAS.

Aug 24, 2011 12:54 PM

Robbery, bitchez

Aug 24, 2011 12:58 AM

WTF...how about this:  I was never hurt by anyone from another race.  I can't see how you can say "reason" and then emotionalize in the same sentence...oh yeah, you're a woman.

I am stating FACTS, Ms.  FACTS.  Call them "hate facts," as I do...but they are still facts.  And that is what unsettles you the most.  There is nothing in error about any fact I have stated, yet they still seem rayciss.  That would indicate that the problem is on your end.  Facts should not cause you to have this sort of reaction.

I don't know wtf individuals or these people from other races have to do with the generalization.  Individual cases say nothing about valid statistical generalizations (and the converse is true too).

Some of us DO NOT take one or two anecdotes and apply them as generalizations.  In fact, I've known vastly more noncriminal black people than the opposite over the years, but this DOES NOT CHANGE the valid statistical generalization.  It does not change that areas with high concentrations of blacks will have high crime rates.  It does not change that black HS graduation rates are 50% or that herpes infection rates among black women are 50% despite the black women I've slept with not having been infected and the blacks I know all having graduated highschool.

It would be the height of idiocy to PROJECT (as you have done) the traits of the blacks or hispanics or asians or indians or anybody else that *I* know as representative of the larger trends of groups they belong to simply because MY situation is not typical either (nor is yours)!  To understand larger trends, you must simply study them.  I have known a couple of white murderers and one hispanic.  Does this mean that homicides are 66% white and 33% hispanic-committed?  Of course not.  My personal situation is NOT representative and neither is yours.

And love got nuthin to do with that.  Love away, but keep your ass out of black-concentrated neighborhoods if you want to stay unrobbed and unraped.

Aug 24, 2011 2:27 PM

uh, Durden, there is more to the East Coast than your motherfuckin beloved NYC

Aug 24, 2011 2:28 PM

Britain is screwed...bitchez

Aug 24, 2011 2:32 PM

the UK's hail mary was importing a ton of 3rd worlders who they hoped would be their next-stage on the pyramid of growth and instead those people just sucked the fucking State dry and have tried to impose sharia and shit everywhere they've gone, trying to take the UK to the state of the shithole they came from.

And you've got blacks rioting and burning and looting because the cops shot a gangbanger or because black youth are being frisked frequently (black youth commit nearly 100% of their crime where they comprise even a sizable minority).  Juxtapose this with a pussy YT guilt population that has decided to commit suicide and you have a recipe for FUKD.

Children of Men...won't be Britain soldiering on...

Aug 24, 2011 2:35 PM

racial warfare is already open if you are at one of these big state fairs or "black family reunions"

Aug 24, 2011 2:40 PM

if you were him, wouldn't you?  WTF, hell yes you would

Aug 24, 2011 2:42 PM

oh this is just bullshit...the middle class isn't in a position to prevent the lower class from doing anything.  Who the fuck is denying the lower class access to anything?  The middle class pays the taxes to overfund the schools the lower classes destroy.

Aug 24, 2011 3:47 PM

Bletchley Park anyone?

Aug 24, 2011 3:48 PM

no it wasn't.  Blacks and browns have been background scenery

Aug 24, 2011 3:50 PM

"lots" of rioters?  How about quantifying that?

It's easy to say "lots" of murders were committed in NYC by whites, but 90% of them were still done by blacks and hispanics.

Aug 24, 2011 4:06 PM

so the Fed is going to reverse repo cash to the banks?  Aren't the NBRs the banks' cash?

Aug 24, 2011 4:45 PM

every intervention tends to coincide with a technical extreme in the market so as to achieve maximum effect.

Aug 24, 2011 8:51 PM

you are free to write software and give it away

Aug 24, 2011 8:53 PM

iDon'tCare

Aug 24, 2011 8:58 PM

fuck Apple...have always hated them, always will.  It's a brand, they could put the logo on a turd and people would stand in line for them.  Everyone has an iPhone now, totally played out.  And fuck google too.

The irony is that microsoft's products and those bastard intel chips are what resurrected Apple from the grave

Aug 24, 2011 9:45 AM

I'm not...I believe it's better to let them starve to death than to never have them at all.  Viva la perpetual growth!!

Aug 25, 2010 10:52 AM

The executive class systematically stole all cash flow for the past 20 years, swapping it for share price ponzis.

The supposedly conservative mooch fund and pensions that owned their shares LET them get away with it, as these are the true owners of the SP500.  I guess they got drunk with the "growth" returns and everyone drank the koolaid.  People actually have said dividends suck and you should go for the share price.  The ponzi makes next Q's share price all-important for execs to capture the real cash in terms of bonuses.  That is the game.

And they don't care if they wreck the fucking company.  A few years of ponzi followed by all-out collapse and BK is more lucrative to an executive than 20 years of well-run, sustainable, dividend producing operations.

Aug 25, 2010 10:55 AM

as I expect yields to continue to decline, I expect capgains from MLPs.  Been playing these for a while.  Being paid to own something, you know like being an actual OWNER of a share of a venture, is nice.

The steals of the century were certain coal and pipeline MLPs during the 08 crash.

Aug 25, 2010 11:30 PM

Vicious, bitchez

Aug 25, 2010 3:50 PM

you could, um, just turn around and buy more physical with the cash you still have

Aug 25, 2010 3:59 PM

I'm the nicest guy here.

Just look at the smiley.

Goled, bitchez!

Aug 25, 2010 5:07 PM

I think they were pissed where I called them pavement apes

Aug 25, 2010 5:09 PM

Mort, you and your cousins need to go strangle some other nation

Aug 25, 2010 8:32 AM

I agree...this monetary system needs to go.

But we do not have to suffer 3rd degree burns or the apocalypse as a result.

USians could cut our oil consumption in half and still live very well.  There are many of us here who were alive in the 70s and don't recall grinding poverty or austerity.

The problem is that consumption per capita of energy is pretty much the arbiter of wealth for a society.  And ours has gone UP, way up.

Aug 25, 2011 1:04 AM

China's ability to sink a CVN is highly debatable.  in wartime ASM, probably nil absent use of a nuke

Aug 25, 2011 1:50 PM

and then we will devolve into a regime where like in brazil, cops get gunned down all the time.

Aug 25, 2011 11:28 AM

YT?  Sound it out

Aug 26, 2010 10:07 PM

Uh, no you do NOT.  Crime rates are near 20-year lows.

NYC is safer than most medium sized cities.

Only Detroit and Baltimore and St. Louis and other medium cities with large percent black populations have significant violent crime rates.  There is no war zone out there, just urban blight confined to relatively small areas.  There is no breakdown whatsoever.

You watch WAY too much Death Wish.  Even Washington DC has gentrified most of the city proper now.  Sure, certain cities will be no-go's...Newark, Baltimore, Detroilet, parts of New Orleans, areas in Chicago.  But on the flipside, there's NYC, Washington, most of the cities on the west coast, the midwest, Salt Lake, Boise, etc. etc.  There are more cities and states WITHOUT these types of problems than there are with them.  Basically just look at racial demographics if you need a quick estimate of risk profile.

Aug 26, 2010 10:21 PM

YES.

How many of these stupid hyperinflation vs deflation threads have I said, jfc people stockpile WHATEVER floats your boat.

Land, coal, oil, silver, gold, platinum, diamonds, wheat, wood, cigarettes, yes, even PUSSIES.  If you can stockpile pussies for trading, SURE.  Pussies have value now and in the future and can be traded for other things that you want.

Gold has no special inherent value beyond any other thing that people want.  If a pack of smokes costs $5 and gold $1200, the market is saying that the ratio of smokes to gold is 240:1.  A pussy can be rented for $50 these days, and a higher quality pussy for $100 or even more.  So the market is saying that low-grade pussies are at 24:1 to gold and higher grade pussies 12:1 or even a lower ratio.  These are all just real assets, no more, no less.  Market says gold is 2:1 to rhodium right now...market says Californium-252 is 1:1,000,000 to gold.  To own a pussy instead of rent it, hell, that may be 1:1 to gold, I'm not that up to speed on this market, could even be more depending upon the quality of the pussy's life support system.

If you want real assets, amass and save whatever floats your boat.

Aug 26, 2010 10:37 PM

You think I don't have ample ammo?

Telling people to stockpile ammo and stockpiling ammo is an idiot's errand.  Ammo has never, excepting nations at war and under siege, been a currency.

Ammo is USELESS in a breakdown.  I know that's hard for you guys to grasp because you think you're the protagonist in SOCOM or Call of Duty.

2 legged predators?  Nice fantasy.  In madmax you want to avoid gunfights LIKE THE PLAGUE.  I guess it never occurred to you geniuses that a gunshot wound without effective medical care means amputation or infection and death.

You want to stockpile something useful, stockpile antibiotics or aspirin.  I feel like this place is Gorillas in the Mist sometimes, with the utterly nonsensical shit some of you say.

A person with a child dying from fever is your "captive audience."  What the fuck does your ammo have to offer ANYONE except those who are interested in killing?  According to you guys, the cities are already warzones and the zombies are about to start roaming the burbs looking for brains.  Trust me, you guys are SAFE.

Aug 26, 2010 10:55 PM

Trust me on this one:  if it comes to madmax, you won't be out shooting 10000 rounds a year, bud.

You'll be run out of your bunker, smoked out by me and the zombie hordes, and be packing at most one rifle and maybe 200 rounds.  If you load yourself down with all that ammo, me and the hordes will quickly run you down.

See, there are going to be way more of the zombies than you.  And the zombies will vote for politicians who promise to drive Abrams straight up your backside.

You're spot-on about medicine...infinitely more valuable than ammunition.

Hell, man, if it comes to this, just grow poppies and MJ like they do in Afghanistan.  The local warlords are gonna make you do it anyhow.

How long do lone gun survivalist types last in the face of Mexican drug gangs.  Sorry, the whole guns&ammo crowd hasn't actually done very much thinking.

MOBILITY is what matters in an apocalypse.  So maybe me and the hordes see your little compound.  Maybe you have a .338 Lapua and a few crazy friends and you have standoff capability.  So, we just poison your damned farm.  Spread the wrong shit all over you or blow up an industrial plant upwind or pour some nasty shit into the stream upriver or we just like light the whole motherfucking thing on fire.

Trust me, you're coming out and you're going to be running with what you can carry on your back.  The Heat Rule is in full effect in such a situation.

Aug 26, 2010 11:00 PM

ROTFL.

We have this big nuclear fireball in the sky that provides all the Vitamin D one could need.  It's called the sun.  Check it out sometime.

As for the particulate masks, LOL.  So, um, when the bomb goes off that pollutes your ENTIRE FUCKING COMPOUND, what do you do with all that ammo?  Shoot all the chickens and goats with it?

MOBILITY is what matters and flexibility.  This is one of the advantages of gold for example versus other real assets.  Opium is certainly an alternative, as are diamonds or lots of other things people want like medicines such as antibiotics.  But last i heard the MORE primitive people were the more they seem to desire gold, all the way down to nomads roaming the fucking Sahara desert and eating camel shit.

Aug 26, 2010 11:01 PM

NO, MORON...you melt it into the shape of a fucking CALF and then rally a vast jew army

Aug 26, 2010 11:07 PM

Does your land have a deed registered with the government?

Then, yeah, um...we will know where you are.

And we are COMING FOR YOU, Colonel Cooper...not your guns and ammo, just you.  We want to force you to join the vast roaming zombie hordes.

You ever see Dr. Zhivago?  I recommend ALL the bug out mountaintop compound madmaxers to watch this movie.  When the "Party" pastes a placard to your farmhouse saying "property of the Party, no entrance, penalty death," it might wake ya up.

Aug 26, 2010 11:13 PM

FDR lopped 40% off the dollar overnight...that inflationary enough for ya?

Aug 26, 2010 5:08 PM

change the system.
Billions don't have to die to sate apocalyptic misanthropes such as you

Aug 26, 2010 6:24 PM

Idiotic.

Ammo is subject to the same (and more actually) confiscation concerns as gold or any other asset.  Ammo can be seized and support therefor would be relatively broad.

Ammo is also, in a societal breakdown, relatively USELESS.  Read that again.

You cannot shoot your way to prosperity.  Ammo is a tool, if everyone is shooting, sure it's great to have, but not so great as being nowhere in the area.  Short of societies under a state of siege warfare (like Serbia) ammo has not been a currency.  And certainly, it has not compared to gold or silver or diamonds or art...ever.

Oh wait, you say, you can shoot animals with it.  Riiiight.  300M starving people.  How long you think the animal supply will last - look at Haiti.  Some people are stockpiling 10,000 rounds...for what?  Too heavy to transport, how could you ever shoot that much?  Basically hoping for scarcity and black market need, hoping for violence, hoping for starvation.  Ammo is a true vulture's play.

Look how much soldiers carry on patrol; there's your guide.  What use would a pig owner have for ammunition once he already has some?  Ammo may enter a value bubble, but there are so many rounds out there that they will be distributed and supply will begin to dwarf demand.  If people are shooting THAT much, the demand will still drop because vast swathes of people will be shot dead.

Stockpiling ammunition is an idiot's errand.

Aug 26, 2010 6:31 PM

horseshit.

How much is a box of .45 worth, 230gr FMJ?  What, $25?  Look at the weight of the thing.  Compare it to just 2 oz of Ag.

Sure, ammo is a real asset and has real value, but it's not going to serve as currency.

If you get a drop in the supply of ammo due to economic collapse, what do you think this will do to the silver, gold, oil, wheat supplies?

Sure, you can trade ammo or guns or horses for other real things; it's always been that way.  Ammo is not scarce even now...there's plenty of it out there at the right dollar price.

Aug 26, 2010 6:43 PM

Serbia was in a state of war and under siege and bombardment.  They produce no oil and were quickly stripped of industrial capacity.

Note that this was NOT the experience for any South American nation, all of which have gone through a hyperinflation.  The two largest nations in S. Am are each on at least their 3rd currency in the past 20 years.  At no point did ammunition become a currency nor toilet paper.

Large relatively resource-rich nations can't be starved to scarcities in basics like this.  The US produces easily enough food to feed all of us, and still 5-6mbpd of oil per day, has relatively vast coal, gas, and uranium reserves, along with fresh water, timber, abundant wind, sun, and even hydro still out there.

Assuming we annex Canada in case of apocalypse, we have access to relatively gigantic additional reserves of oil, gas, uranium, coal, water, timber, and about every other mineral out there.  Just seizing the tarsands would get us to the production levels we were at near peak, granted these are 1970-era figures, but we seemed to be doing pretty ok back then.  Certainly not starving and having zombie outbreaks.

Aug 26, 2010 6:53 PM

Me and the rest of the zombie horde have guns and ammo too...we'll just shoot you and take all of it.

Aug 26, 2010 7:01 PM

ok, here's what's wrong with the bugout ammo crowd.

Maybe you have a group of friends, but you're in one place.  I am with the zombie hordes...we are many more.  We, too have guns and ammo.  But you were smart, you holed up in a nice strong house in arable land with abundant timber.

So, we just burn it ALL TO THE FUCKING GROUND.

Trust me, you'll come out.  Medieval people figured out how to lay sieges...apparently modern madmax idiots have forgotten.  Eventually, when the hordes start lobbing dead cows and corpses over your walls, you might wake up.  You ever heard of fire?  It TRUMPS guns and ammo.

Or maybe the zombie party will get political power and send an A10 your way to deliver some 30mm gift packages.

Aug 26, 2010 8:29 AM

I have personally noticed and commented on exactly the same phenomenon when in the 3rd world.  the locals tend to hate this type of situation and yearn for the US's "controlled" traffic environment.  But if you really pay attention, you can see how there is organization in the chaos and jams clear MUCH more quickly than they possibly would in the US.

We have idiots around where I live STOPPING for the flashing yellow, but if the light is off due to power outage, just speeding right through it.  They don't even have a basic grasp of interpersonal traffic control in them, nor even know the rules of the road.  They do shit assbackwards.

Aug 26, 2010 9:38 AM

collapse, bitchez

Aug 26, 2011 1:39 AM

a quote is a bid or ask...it's an order, just like if you did it.

Aug 26, 2011 1:41 AM

yes that is the point of trading rapidly, to be able to pull quotes before they can fill and to arbitrage

Aug 26, 2011 1:48 AM

dumbass, he said in DEVELOPED nations.  There is nobody yet starving in developed nations. 

Aug 26, 2011 1:51 AM

Starving in the Horn of Africa is the fault of Africans.

Perhaps it's the West's fault for sending them so much food as to facilitate rampant overpopulation and complete lack of interest in self-sustenance.  Why grow food when whitey will drop care packages?

Aug 26, 2011 11:28 AM

maybe because DELFATION is not a word

Aug 27, 2010 1:28 PM

You voted for obama, bitch

Aug 27, 2010 10:59 PM

84 is a ridiculous print for JPY...dunno how long the BOJ can sustain it here before the deflation stresses become unbearable.  They will be forced to buy dollars and dollar assets.  Could easily spark a rally.  Then we will print dollars and buy Treasuries and yen assets.  So maybe the japs can own the US and we can own Japan and we'll all just swap addresses.  Some of our citizens are a bit fat to be in Tokyo mansions, tho.

Aug 27, 2010 11:04 AM

This is just the camel's nose of austerity.

see, rich tribers like Mort own a TON of claim tickets to the upcoming liquidation in the form of USTs.  They want them ALL PAID BACK.  Out of your kids' organs if necessary.

Notice how they've shaped the public opinion toward "let's slash and burn and suffer."  We see this on ZH where there are people who are actually begging for mass suffering to come.

Austerity is the IMF's prescription for looting via deflation.  DO NOT BE MISLED by it.

The solution is to ABANDON the debt model and repudiate the claim tickets of shylocks like Mort.  Look, what Rothschild figured out is that if he could start a money-as-debt racket, the math would inevitably bankrupt the sovereign and then he could own the whole fucking country.  That is the POINT of usury!  For fuck's sake, recognize that. 

The whole POINT of tribe carpetbaggers in the south was to lend to blacks for the PURPOSE of acquiring their entire years' worth of sharecrop!  It's a way to make your MONEY work so that you do not have to.  And the con is so insidious that you can make PRETEND money turn into real things WITHOUT work.  It is the way of the PARASITE.

Only the very intelligent understand the mathematical inevitability of usury.  The stupid simply see the rich getting richer without working while the poor work harder and harder and go backwards.  Institutional Usury lets money "make" money without work and it INEVITABLY bankrupts the poor and stupid...this is why it and its purveyors have been reviled as con artists throughout history.

Usury mathematically leads to bankruptcy and liquidation.  Once the machine of geometric compounding is set into motion, there is a very short window to get out, after which it CANNOT be stopped and will proceed to its final, foredestined outcome.

Aug 27, 2010 2:36 PM

Moronic FALSE DILEMMA.

Anyone who voted for either major party candidate wasted their vote

Aug 27, 2010 2:46 PM

Fuck you, Mike Krieger.

The "elites" or whatever they think themselves to be, NEVER HAD THE RIGHT TO RULE.

Read the fucking Preamble and DOI.  BY, OF, FOR the People.

In fact, I know some of these "elites."  They hate the middle class.  It offends them that "those people" should have ANYTHING at all.  They hate riding in the same airplanes as you, that you can drive the same types of cars, that you can eat at the same restaurants, stay in the same hotels, or live in the same buildings as they do; they hate being in your presence.  They liked it better in the middle ages where they could run your children over with their carriages and they would do so without compunction.  It is THEIR right to have things, THEIR right to take what you have because it isn't YOUR RIGHT as a "commoner" to have it.  It's an offense against their natural order of things for you, the commoner, to be in possession of ANYTHING.

This is why they wage war against the middle class.  The middle class is full of people who are beneath them. 

Aug 27, 2010 5:49 PM

A couple of things:  don't EVER put yourself in my class.

The other is that if you really were smart you'd have either seen through Obama's bullshit for what it was or else have had the good sense to listen to one of us smart people as far as what you should have done.

I was on many forums telling people not to fall for this logical fallacy of false dilemma between D and R, and calling Obama "Teddy Ruxpin."  If you ever see that anywhere on the web, it came from me.

What I find most offensive is the conceit of the near-smart like you.  You aren't half as intelligent as you think you are and people like you with bloated egos and mediocre IQs are a dime a dozen.  Think you're brilliant, huh?  Then explain how the fuck you fell for the Obamacon.

Aug 27, 2010 5:54 PM

People like you would vote for a pile of shit with "your nose held."

that's what's wrong with you.  You vote for shit.

WOW...you helped "expose" the progressives.  LOL.

Look, a lot of you just need to stop talking and start paying attention; really, it's as simple as that.  What and who each of these candidates was and who they represented was obvious.  OK, obvious to me, but I talk a lot and will state things as unconditional maxims - you should listen, and quite probably obey.

Hell, I was a guy who bet money prior to the Iraq War that we'd find no WMD to justify the war, right into the TEETH of the media and "evidence" barrage being levied by Busch, Powell, and Tony Blair.  Must have been something in Blair's speech, I simply intuitively knew that he was lying.  Only now in hindsight do the others get what I found obvious a priori

Aug 27, 2010 5:58 PM

You are one of the ones who should STFU and start paying attention.

Busch did not create this, he only continued it as his predecessors had.  The end of the US began when we achieved Peak Oil, in 1970.  It's really as simple as failure to grow of our energy supply.

This import petrodollar racket was our stopgap.  The USSR had none.  They Peaked in 1989.  I'll give you a gold star if you can tell me what happened to their empire the next year.

Aug 28, 2010 1:45 PM

Let's not paint with too broad a brush here.

I hope you've noticed some particular demographics trends as far as civil disorder, rioting, crime, and the absence thereof.

The "blood in the streets" will depend solely upon what people are in the streets

Aug 28, 2010 11:26 AM

Doesn't need to be commodity-backed.

Real Bills Doctrine would permit anything of value to back notes.

That said, the mathematics of exponential compounding make default INEVITABLE.

This is why we must ALL reject austerity as all that will do is make everyone into a starving waif while the government and our national income goes to PAY INTEREST.

Right now, we have a functional national economy.  Not at the 2007 mania levels, but we do make things, grow things, produce some things.  There IS income.

The problem is let's say you're a person and your CC is maxed out.  You can cut your food budget to try to continue to "make payments" on that CC but you cannot CUT your expenditures fast enough to keep up with the growth of the debt.  This is the FACT of geometric growth compounding.  It's a mathematical inevitability.  The debt will continue to grow and the interest owed on the principal will continue to grow as interest begets interest.  Even your ability to "service" the debt eventually consumes 100% of your income.  You can live in the streets, cut every single bill to 0, but you can't keep up with the compounding.

It is important to realize the situation and repudiate the debt, rather than allow the accounting ledger to consume your life.  Jew carpetbaggers made hay off of this interest lending during the post-Civil War era, when they lent to black sharecroppers.  Just as the payday loan people end up rolling the balance due to the INTEREST they owe and eventually it consumes their entire paycheck and then 2, then 4, etc., so was it with the blacks.  The carpetbagger routinely ended up owning the sharecroppers' entire year worth of production.  Slave to one guy, free, now slave to another.

People who are short on money get onto the interest merrygoround and if they do not get off after ONE interval, they're mathematically doomed.  They end up having to forego FOOD and shelter in order to make INTEREST payments.

The US must NOT attempt to "make good" on its debts to bankers and the elite.  It must repudiate them.  Otherwise, the elites will do precisely what they have done with Greece, Iceland, Ireland, Argentina, etc., and that's to have us SELL OFF our nation to creditors.  Spain currently basically rents Colombia to Colombians.  During the last major default/inflation that put all those zeroes onto the local paper, Spanish banks and telcos came in and "bought" a lot of the hard assets, cell infrastructure, mines, banks, etc., simply because Spain had access to the currency that Colombians "owed."

Aug 28, 2010 2:01 PM

Again, I will say there is ABSOLUTELY no need for a gold standard, and one is counterproductive.

Real Bills is, in the abstract, an everything standard.  All real things back "money" as we know it.

There's no need for gold to extinguish maturing bills' imbalances.  This could be done by coal, oil, wheat, or the services of a dentist.  The point is that all things of real value, NOT DEBT INSTRUMENTS, serve as the basis for money.

The reason central banking EXISTS is to charge interest on the existence of money.  It's as simple as that.  As long as the people honor the debt, the math makes sovereign bankruptcy inevitable because the economy cannot grow at the rate that interest compounds.  Perhaps this is by original design or simply the bankers merely desired to take a cut of real production as seigniorage, but that's the end consequence nonetheless.

Again, I will say, given the math of the present situation, either print or repudiate; there are NO other options.  We collectively MUST REJECT the notion of austerity or "paying it back."

The Z1 consumer credit metric is around $50T.  That is the total amount of money-as-debt outstanding.

It is INARGUABLE that the bank that controls the FRN in which all that $50T is denominated, NEVER had $50T of actual capital or "real" money to lend.  The banking system exists by lending entirely fictional money then charging compounding interest on it.

In reality, what we SHOULD DO is charter our OWN bank, and lend ourselves the SAME fictional money that the Fed and its member banks lend, and repay them with that.  We must repudiate the FRN as has been done in the past to the paper of previous central banks in the USA.

What a hyperinflation will do is reduce our living standards to what they would be without reserve currency status and to what is commensurate with our debt/equity ratios as a nation.  Austerity will only make the banking clan the owners of EVERYTHING.

This is precisely what Jefferson MEANT in his famous quote!  Austerity IS the deflation.

If you are a banker and you lend freely, you create inflation via fictional capital.  Then, at some point, your loans are repayable ONLY in terms of your own banknotes.  So you shut off the supply, creating deflation.

At the time of lending, the money for the aggregate interest owed on all money outstanding DOES NOT EXIST.  It REQUIRES perpetual rolling growth of credit!  If there is, again, $50T or so of Z1 credit outstanding and let's just say it has an average coupon of 1%, this means there is $50T of debtmoney out there but $50.5T of debt money OWED.  The interest hasn't been created yet, and it requires someone else to BORROW it.

So, as a banker, you shut off the supply of credit and your entire note base is in effective default because there isn't enough money to pay all claims.  You only lend the principal.  By this deflation, you can then force cascading default, call all loans, and acquire collateral.  This is the SCAM of lending, it's exactly what it does.

Over the centuries, so many people have seen so many others get caught in this CON that usury or lending at interest was FORBIDDEN by most religions as contrary to social harmony, as an evil.  Central banking is merely usury at a national or worldwide level.  It MUST be repudiated, once and for all.

Aug 28, 2010 2:31 PM

The Fed HAS NO CHOICE but to continue to do QE.

Look, you have to step back and examine how money is created and what happens when it is.

Simple thought experiment.  Bank lends $100 in FRNs at 5%.  The $100 exists, the $5 owed at EOY 1 does not.  Someone else has to borrow it, perpetually increasing the credit base.

When we hit credit peak a couple of years ago, people are not borrowing in increasing amounts.  The Fed has no choice but to effectively PRINT the interest owed that does not exist and will not be borrowed otherwise the credit base will implode as a matter of basic mathematics.  Look, you can run this on a simple excel spreadsheet and see what happens when borrowing goes into reverse.  All of the interest payments due begin to compete for the money supply along with the principal due.

This is how we can have this big QE but no apparent inflation or deflation as expressed by aggregate prices.  This is highly probative that the interest claims on the monetary base for the QE period were $1.75T.  THAT is the required additional borrowing needed in order to service TODAY's interest claims on TODAY's monetary base.

This is exactly what Japan has done to prevent deflationary collapse, they print the interest owed.  Printing interest owed really divorces interest from reality, because the money is coming from nowhere and then being extinguished as payment to a bank to prevent cascading default and monetary collapse.  This is why real yields are near-zero, because there is nothing REAL behind the interest.  The Fed may as well be scratching out the interest component on a piece of paper and calling it even.

If I lent one of you $100 at 5% interest and I forgave you the interest, what is my yield?  There is your ZIRP.

Addendum:  so I lent you $100 at 5%.  At the EOY, you are like look dude, times are tough, I can't pay you the $5; I can't service the debt.  So I offer you $105 at 3%.  Perhaps you think well, I couldn't have come up with $10 at EOY2, but maybe I can swing $8.  Maybe at EOY2, times are still tough, so I drop it to $108 at 1%.  Maybe there's demand for a loan on those terms.  I've just cut my effective yield from getting $15 at EOY3 to $9.  At which point I begin saying hey, I'll just take the principal, no interest, I have gotten to ZIRP.  This is how the FFR follows the aggregate market.

The market is telling the Fed that the economy cannot service the debt, thus there is no demand for higher-interest money.  So the Fed tries to find a point at which there will be demand for it, and here we are at 0.  ZIRP effectively forgives interest.  It doesn't forgive PAST interest, just future interest, basically, pay me what you already owe me and no more from this point on.

If you review my loan example, it does grow credit outstanding and prevent default by the borrower.  However, it has no effect on the efficacy of his harvest or whether the coal seam he originally borrowed to finance development of has been exhausted.  And that's the fundamental problem here, money is NOT the economy, which has its own problems revolving around the decreasing EROI of energy supply creating effectively less net aggregate energy.

Aug 28, 2010 2:36 PM

And this is the problem!

Gramma's savings was what Gramma ACTUALLY SAVED.

You don't work and produce for compound fucking interest!  You're just a rentier usurer!

We're ALL looking to let TIME make us rich and get something for nothing!  Let someone else do the work, I'll just use interest compounding.

All the fucking complaints about the elite yet none of you seem to understand how they STAY ELITE.  Their money "works" so they don't have to.

Aug 28, 2010 3:30 PM

I dunno but Dunning-Kruger in full effect these days.

I'm not so much concerned with the desires of men, because Mother Nature bats last and she has lightspeed hands through the strikezone and vicious opposite field power.

The whims of would-be kings are irrelevant if the sun decides to explode tomorrow.  I see society as no more than emergent complexity.  All this cannot exist without energy.  We as a species rode an energy supply wave that has inflected.

All I do know is that life will go on and I intend to plan now to live out mine without too much suffering, as well as for my children.  Not really "into" the whole revolution.  Nobody wants to listen to the truth or to me; they'd really rather shout D & R back and forth and when they can't solve something, declare it as insoluble.  I'm talking as a guy who's been told to use poorer vocabulary in order to not intimidate coworkers...people just don't want to hear the truth; there's no future for people like you or me who speak it and if they'd just let us have the steering wheel, we could guide the car back from the precipice.  I've resigned myself long ago to the fact that I am outnumbered by the cretins by many orders of magnitude.

The power structure relies on energy for its existence, and it will fall of its own accord.  The world will grow larger again.  I don't fear for myself what's coming because I've seen with my own two eyes that true meaning can be found outside of the obesity of consumption that we have in this fishbowl.  People need to get off the hamster wheel and understand that money cannot buy happiness.

But to change the system?  It has too much inertia now.  I'd sooner reverse a glacier with my bare hands than affect the outcome of this system.

Aug 28, 2010 3:58 PM

You just presented a false dilemma without even knowing it.

If you cannot speak or think without committing logical fallacies, then please cease speaking and thinking.

Aug 28, 2010 4:04 PM

Biggest threat to national security are people like Mullen.

He obeys orders to go to War in the face of a CONSTITUTIONAL MANDATE that Congress declare one.

Aug 28, 2010 5:10 PM

if the market stays flat, the only returns will be had in dividends.

I'm long certain higher yielding stocks simply because I believe the trend of flattening yields will continue.

Aug 28, 2011 2:37 PM

thank god, bc I was worried there for a second

Aug 28, 2011 2:52 PM

I'm on the next leg of my "Economic Collapse Tour" - Iceland.  People here in the city seem to not be starving or rioting.  In fact, everything looks pretty ok.  I've noticed having been to 3 or 4 countries in a row now with a lot of zeroes on the banknotes that all of this apocalypse fantasizing people have with their bugout ranches is just mostly idiotic.

Aug 28, 2011 4:44 PM

completely wrong- subtracting blacks and hispanics places us ahead of china.

Our system is not bad at all; we just have a large population with hereditably low IQs

Aug 28, 2011 4:51 PM

akak is a mossad psyop

Aug 28, 2011 4:56 PM

they're awesome at stealing things tho

Aug 3, 2010 10:05 PM

Seriously?!?  The same fuckin people that's been buyin all the other bonds!

Aug 3, 2010 10:25 PM

Lotta people saving tons by not payin the underwater mortgage.  In fact, probably half the people in that tri-state area are underwater.

Also, there are still people with a LOT of money.  I was outta work for 7 months in 09 but since getting back in, I am earning again and makin hay while the sun shines.  I've cut back on expenditures quite a bit, and devote more to savings, which is easier when your income goes up and expenses go down.

But you can get a lot of high-end jewelry off of Craigslist if you are patient and set lowball offers.  People are divesting themselves of a lot of saleable things these days.  And if you still have credit, the sky's the limit on the oblivion you can spend yourself into.

Aug 3, 2010 10:35 PM

no, they most certainly do not.  Nature finds a sustainable equilibrium.

The only place where it does not is the deer on the island anomaly.  Over time, animals and plants evolve to even smack down invasive weeds.

Our system is one of unchecked geometric growth led by a group of "academics" who do not understand the limits thereof.

Our only hope out of this is fusion power...yet I see very little in terms of the Manhattan Project necessary to move that ball down the field.  Instead, we squander our printing on bankers and debt...for fuckin what?  Coke binges and mansions?

Aug 3, 2010 10:52 PM

that's isn't what Achdumshitjad said.

That's a fictitious re-rendering of the quote.  But, what should you expect from Tribe-controlled media outlets?

Aug 3, 2010 11:02 AM

Sounds like China wants to support *production* at below cost.  IOW, a subsidy

Aug 3, 2010 11:32 AM

Confusion, bitchez

Aug 3, 2010 2:38 PM

Gamma, bitchez

Aug 3, 2010 3:36 PM

How many wars has Iran fought in the last 10 years?  20?  50?

How many wars are they engaged in right now?

How many are WE engaged in?

You fucking moron

Aug 3, 2010 3:56 PM

no Granite, bitchez?

Aug 3, 2010 5:26 PM

"In financial news, trav7777 downgrades S&P to IDIOTS"

Seriously, "Farce, bitchez" was a better opening post for this article...

Aug 3, 2010 5:29 PM

Lies, bitchez

Aug 3, 2010 5:35 PM

Auditioning for Captain Obvious, she is?

Look...EVERYONE KNOWS that the announcements are a fucking farce!  Everyone knows that there is no recovery and that the data shows the opposite and what doesn't is a bunch of cark.

Nobody CARES.  The system is built on pretend, not reality

I mean where the fuck was the "market" to discount the impossibility of perpetuation of economic growth?  Where was the market discounting the clear ponzis in .com and housing?  Nowhere, that's where.  Markets aren't rational and they aren't efficient.

Well, they're efficient now, because only computers do the trading.  And they're also highly rational for the same reason.  The apparent valuation provided by computers is irrelevant; they care solely about moving the tape in a direction so as to "outwit" another computer and move some of that computer's firm's money into other hands.

Aug 3, 2010 5:38 PM

He honestly seemed to care when his aged wife drowned.  But the dude has more money than G-d now, surely that has salved some of the sting.  Instead of a 51 yr old, he can now opt for 2 25.5 yr olds or even 3 17 yr olds.  That's math, bitchez

Aug 3, 2010 5:41 PM

Don't weep for Lebanon or Hariri.  Let's see here...his fucking CHILDREN made the "top 10 billionaires under 20" list off the inheritance.  He was as corrupt as any Syrian

Aug 3, 2010 5:52 PM

My next first is "NOT ORI, Bitchez"

Aug 3, 2010 6:18 PM

Gee, when ALL major media outlets are either neocon or Tribe controlled, plus all the major banks, the Federal Reserve, you've got the 3 major newspapers under Tribe control.  How fucking HARD could it be to get your message across?

The message and the money is monoethnic...yet people keep saying "it's the whites."  Maybe Netanyahu is confused by the WASPy names that have been adopted by his cousins here

Aug 3, 2010 6:19 PM

ok...his Chief of Staff is an Israeli citizen.  Do you REALLY think what you propose has a snowflake's chance in hell of happening?

Who *controls* funding in the US?  Look up and down the Fed Board list.  Find me the non-semites.  If you are in a power position in finance or media and you are NOT a semite, then YOU are a token!

Aug 3, 2010 7:40 AM

Climb, bitchez

Aug 3, 2010 9:54 PM

It had no chance of working.  Economists set policy, engineers and geologists do not.  Economists do not understand the limits to exponential growth.  Engineers do.  Geologists studying oil production curves do.  At the point aggregate energy inputs peak, there is nothing the monetary regimes can do.  Because, to be perfectly blunt, you can't PRINT OIL.

When EROI goes to unity, it is literally all over.  I mean all.  No amount of free cash can make water yield more energy going downhill than it took to pump it uphill.

This is where economics collide with thermodynamics and you will bear witness to what is real science and what bows down before it.

Aug 3, 2011 1:13 PM

I shop at Bloomingdales in an expensive mall for kids clothes.  There's a rack in the back where you can get like the $80 jeans and Polo crap and because they were returned, they are discounted sometimes twice.  I've picked up desirable brand stuff (for teens, you know how it is) for like Target prices. 

People who blindly just buy things are idiots

Aug 3, 2011 1:18 PM

lot of people hedonically adjusting to poisoned food and soon to just poison in order to hang onto that Merc lease so they don't end up on Repo Games

Aug 3, 2011 1:43 PM

the 1yr daily SP chart is just fugly...this is pretty much a make or break point here.

Aug 3, 2011 10:06 AM

lol...the government has to go to the same guy for cash to pay its promises.

Aug 3, 2011 10:07 AM

that is more Minitruth than Matrix

Aug 3, 2011 10:10 AM

disappointment, bitchez

Aug 3, 2011 9:29 AM

lol...man, think about what you are saying.  Do you think the average person is going to be ABLE to own gold at $3000 an ounce?

How many ounces is the average monthly salary going to be able to run out to the coin dealer and buy?  None!  Sheeple are net SELLERS of gold.

Aug 3, 2011 9:41 AM

by that point, who is going to obey?

Aug 3, 2011 9:42 AM

how do you buy real gold on leverage?  You mean paper GLD?

Aug 3, 2011 9:50 AM

can't agree here...gold is far too expensive for an ordinary person to be able to plunk down anything.

WTF, you think J6P's woman is going to go into a coin shop and drop $200 for a coin the size of a freakin DIME?  Try it sometime- take a sheeple into a coin store with you.  I did one time and she was derisive about "how much he spent" on bags of junk silver.  Like that guy just spent $4800 (or whatever) on those coins.  Like it was a foolish expenditure of money.  And if I bought a Krug or something, same attitude.  Tell her to save her money and she retorts oh well YOU just spent freaking $1x00 on a stupid coin!

The naivete class is a net SELLER of gold.  This is how C4Gs are everywhere and it's such a growth business.  The sheeps are desperate for cash to fund merchandise purchases and for entertainment. 

Aug 3, 2011 9:52 AM

collapse of the dollar was staved off by an unholy alliance with the House of Saud.  In addition, the gold production base moved from a few major producers to a fragmented supply regime.  And CBs dumped

Aug 3, 2011 9:54 AM

horseshit.  Gold has value because bitchez give up pussies for it. 

Water is cheap because it is in relatively abundant supply

Aug 3, 2011 9:56 AM

all Confidence Schemes are like this.  What other confidence schemes can you point out?  the FRN and USTs are both the same thing.

Aug 30, 2010 1:29 PM

not if they're short.

I mean with the massiveness of the bond rally, they should be giving this guy a parade.  China's decision to cease accumulation and actually roll off while the bonds have done nothing but rally like pets.com shows them to be the dumb money

Aug 30, 2010 11:16 AM

gotta debase against debt, only thing the currency is based on. 

Aug 30, 2010 11:40 AM

but...but...I was assured that the chinamen were going to take over the world just like the japs were in the 1980s.  I mean, I saw a few movies with this theme, for cryin out loud.

Don't worry, that magical asian centrally planned economy is IMMUNE to any laws of economics or even physics for that matter.

Aug 30, 2010 8:43 PM

Explodes, bitchez

Aug 30, 2010 9:26 PM

absofuckinglutely correct.

H1Bs are brought here NOT because there are no local workers to do the work but because MANAGEMENT is looking for CHEAP workers so they can INCREASE their OWN bonuses!!!!

That's ALL it is about.

I've worked side by side with H1Bs and managed them over the years.  Some are competent, many are not, all are cheap.  They lie like dogs however, and the entire H1B scam is for a staffing company to put mutually irreconcilable skills on the req and then "oh we can't find an American." Then they get an H1 who LIES and says he is an expert in both mainframe and web, Oracle and DB2, Unix and Windows, .net and J2ee, with however many years you want of experience in all of them.  And, lo and behold, the resume's a hit, you're hired for cheap.  Nevermind it's all lies and the only concern was to get a guy in for cheap so the branch manager can show cost cutting and earn HIMSELF a larger paycheck.

THIS is why US companies seem to be doing so much less right lately.  The whole point is the share price and management bonus payments.  Companies are run into the ground to serve these goals.  And in my last stint at a telco, I heard constantly how expensive I was but none of these H1s could have possibly done what I did and I was earning the least I'd pulled in for the past 10 years or so on this contract.  They simply would NOT pay and expected labor rates somewhere in the H1 ballpark.  Fine, go fuck yourselves, hire cheap talent that is mediocre and knows it's getting fucked over to make some VP a bigger bonus check.

Do these idiot managers think those H1s are actually trying hard?  Those that were competent, in my experience, slacked off BIGTIME because they knew they were getting fucked like a slave.  They found ways to get that effective hourly rate up.  As an architect or manager of them, you had to crack the whip to get shit done sometimes.

Aug 30, 2010 9:35 PM

yeah, I am constantly pissed off by hearing how the US has all this crime, the US has this awful 'health care' system as measured by QoL metrics, the US is "behind in math," etc.

NO.  Blacks and hispanics are.  They are 3rd world populations.

People talk about societal breakdown and riots, over half of the violent crime in the US is committed by blacks, roughly a 3rd by hispanics.  If you have large concentrations of them, expect little Mexico or little Africa to break out if there is a disruption in civilized services.  This is precisely why the Kobe Quake or SD fires had no riots and were ordered, whereas Katrina was a clusterfuck.

What galls me is they blame whites for their miscreant behavior...whitey "abandoned" the poor Katrina refugees who were either too stupid to leave or else stayed planning to loot.

If you subtract blacks and hispanics, 25% of our population, out, you can see a COMPLETELY different picture of this country.  Instead, we have a media machine run by cousins of the financial machine players, all of whom are fascinated to the point of loving admiration of savages.  On television, life is upside down and ignorant people think the truth is racist.

Aug 31, 2010 11:37 PM

this is exactly what I argued the Fed would do, on inflation/deflation arguments with Douchinger.  They are going to print money and try to dictate asset prices.  They will cause inflation by ANY MEANS NECESSARY.

How many times do I have to fucking say that the MATH of a debt money system makes implosion inevitable once credit stops growing, before people GET IT?

The Fed has no fucking choice...either they engineer inflation or the dollar collapses into a black hole.  This was the pressing question, what happens to equities in such a case and I've been asking that for years now, having seen what was coming in the mid 2000s.  I see continued yield compression, stock market support, and the Fed printing the unborrowed interest needed to maintain support on the monetary base.

Aug 31, 2010 4:10 PM

Victory, bitchez!

Aug 31, 2011 8:53 PM

what this effectively means is that demand for credit at 12.5% base rate has declined markedly...the BCB must adjust their pricing to follow the supply/demand curve

Aug 31, 2011 8:55 PM

carrying a Maple is stupid...you will scratch it up and then you'll get less from the dealer.  Many dealers don't even want to deal in mapes for this reason.  Anything beyond crown gold in purity is not meant to be carried; get an Eagle or Krug

Aug 31, 2011 8:59 PM

yes, Brazil has been so hot that this is a big move for them.  I have traveled there repeatedly and could measure the economic pace by the makes of cars on the roads.  Went from rarely seeing anything beyond the american brands to ML420s and X5s all over the place within the span of 6 months.

Aug 31, 2011 9:03 PM

look; central banks don't SET interest rate regimes- they follow them.

The CBs overnight rate is the base interest rate upon which all others are indexed because that's fundamentally where money ultimately is lent from.  If the CB sees diminished demand for credit, aka no offers at 12.5%, the rate must go down.  It's the same as a bond auction where the demand at a particular coupon dictates the pricing of the notes.

When you hit zero, you have to force money into the economy because nobody will borrow.  If all the things you could do with money could only earn you 0% ROI, you wouldn't borrow at 0.  This is where we and Japan effectively are already in a macroeconomic sense.

Aug 31, 2011 9:06 PM

oh, it's going to flow. Bank on that.

However, it's not going to flow in the idiots' manner of "divide reserves by desired consumption to get lifespan" nor is it going to flow at rates commensurate with surface fields of similar size class.  These HUGE fields will at most flow 500kbpd out of an 8BBbl reservoir.  The flow rates from wells this deep are pathetic actually.

Aug 31, 2011 9:08 PM

ZIRP is already a sign that returns in the aggregate have diminished to 0.  The bank cannot even lend money at 0%.  Think about what that means.

QE1 was a bigger bang at any rate in its fundamental structure than QE2 was, so comparing them apples-to-apples is specious.

Aug 31, 2011 9:11 PM

did they even fucking ASK the taxpayers if they thought this stupid shit corn ethanol was a good fucking idea?

Corn ethanol is in the aggregate a NEGATIVE ROI behavior.  This is the most utterly batshit stupid thing anyone can do.

I propose that the "taxpayers" give me a guarantee to pump water uphill during the day so that I can release it at night in order to supplement the lack of solar energy after dark.  If corn ethanol makes sense, surely my idea is even better, right?

Aug 31, 2011 9:20 PM

wtf you ask me that question for?  Did I "get" to drink cachaca?  The shit is everywhere.  Brazil is cheap if you know where to shop.  And for dois reas you can be drinking this stuff by the beach all goddamned day.

brazilian girls are yet to be surpassed...my economic collapse tour has taken me to serbia, colombia, brazil, and iceland.  Each has some smokin hot chicks and in belgrade every 10th one look like a supermodel, but the brazilians have somethin you can't put your finger on.

Aug 4, 2010 10:57 AM

you guys really don't grasp modern warfare, do you?

The Straits cannot be controlled by Iran.  They will control neither the seas nor the skies nor the ground.  All their shore-based assets would be bombed in the first portion of the engagement.  Their naval assets would be suppressed.  Our CVNs will guarantee theatre air supremacy.  We'll have choppers and planes and even drones (serious lifespan these give from smaller carriers) roaming the skies looking for speedboats anchored or at sea and just blowing them up.

We've got a few hundred thousand troops in theatre and a MAJOR air base in Bahrain with hundreds of terrestrial aircraft.

People just think the US is just going to let Iran have those silkworm and sunburns intact on their shoreline?!?!  The opening stages of such a war would be to clear Iran's naval and antiship assets from the board.

Aug 4, 2010 11:11 AM

For the love of money is the root of all evil.

Our dominant ethnic group loves money so much they have historically named themselves after it.  Our society revolves around the stereotypical attributes of that group, neurosis, aggression, self-loathe, and the love of money.

Aug 4, 2010 3:01 PM

Did they even fuckin HIT Israel?

Aug 4, 2011 2:01 PM

well, this /ES chart is fuckin ugly

Aug 4, 2011 2:55 PM

Nice brutal selloff the likes of which not seen since 08 as a birthday present for NeObama

Aug 4, 2011 7:19 PM

yeah, basically the BOJ just crashed everyone's markets

Aug 4, 2011 9:26 AM

right now, the Yen move is apocalyptic...off 3%?  WTF

Aug 4, 2011 9:31 AM

INSANITYZ BITCHEZ

Aug 4, 2011 9:40 AM

major, major currency moves...overnight, the zenz wuz off 3+% against the dollarz.  This isn't just a US thing...every currency regime is trying to outprint the compound interest function that implodes currency base when the economics world gets turned upside down by failure to grow debt.

Aug 4, 2011 9:48 AM

he thinks that printing destroys the power of the FRN.

What he doesn't want to accept (due to the ethnicity of one of his main acolytes) is an analysis of Weimar, where the confettiers came out the other side of the hyperinflation owning all of Germany.  In fact, reversing this outcome was one of the main thrusts behind the german nationalist movement spearheaded by a guy named Adolf and his enactment of prohibition of ownership of various assets by members of a particular clan (same clan as the confettiers).

Aug 5, 2010 1:10 PM

Withhold, bitchez

Aug 5, 2010 11:16 AM

The Fed needs to lower the interest rate and offer lower priced loans to spur wheat production.  Because paper can change the weather, soil, climate, everything.  This is a fundamental tenet of economics.

The price rise will cause all kinds of other producers of wheat to start filling the demand.  Hell, I think I may start a farm on Antarctica because more demand=more wheat

Aug 5, 2010 11:21 AM

Obama get all he shit fo free...ain't that how it work for everbody?

Aug 5, 2010 11:46 AM

Liquidity is useless when nobody wants to borrow!

The housing bubble ran out of steam when it started reaching borrowers who weren't even making ONE payment.

There's no pool of creditworthy borrowers out there interested in loans!  The only people interested are those who do not intend to repay

Aug 5, 2010 12:00 PM

Why the outrage?

JFC, what is the difference between this and inflation?

We, as a nation, obsess ourselves over the downtrodden, the poor, minorities, etc., anyone who's a have-not.

Same in schools; we devote most resources to trying to get the stupid kids Cs, when they will NEVER contribute a damned thing to society.  Meanwhile, we let our smart kids languish.  All revolves around not having to tell the stupid and nonproductive that they are stupid and nonproductive.

The reason kids do poorly in school is because they are stupid or lazy.  It is mostly the same with life and society.  It's not their fault, nobody is "blaming" or judging, but it just is the way it is.  The reason some people suck at gymnastics is because they are clumsy.  Should the gymnastics programs spend almost all of their resources on trying to get people like this to traverse a balance beam?

As a society, things are being given to people who do not deserve them, haven't earned them...all up and down the spectrum, from the spoilt rich brat kids of the elites who get Princeton hookups due to their heredity, to the thug class leeching welfare bennies.  Burn it all down and replace with meritocracy. 

THIS is what nobody wants to say or tell about the Founders; they were meritocrats.  No titles, no nobility, not even a VOTE for everyone. 

Aug 5, 2010 2:11 PM

Luck, bitchez

Aug 5, 2010 2:40 PM

Don't tell the truth - it's CLASSIFIED.  Divulging it will get you into a lot of trouble.

Only lies are tolerated around here, motherfuckers.

Aug 5, 2010 2:53 PM

Call COMEX...they lend shit they ain't got all the time

Aug 5, 2010 3:25 PM

yeah but they're all black, meaning they came out of the other groups listed

Aug 5, 2010 3:31 PM

Racist?  Pointing out the truth is racist?

Go take a look at Huffington's 10 poorest countries...you'll start to notice some trends popping out.

Aug 5, 2010 3:33 PM

Poverty does not cause criminality...it is the converse

Aug 5, 2011 10:57 PM

this really IS the Fed telling SP to fuck off.  There is no force or effect from this downgrade other than SP was making a political statement

Aug 5, 2011 2:54 PM

they can trade us for all our military hardware and nuclear weapons on their soil

Aug 5, 2011 9:02 AM

can't do that...it would be a blackpocalypse, because about half of the FNM employees are black.  Every effort must be expended to persist and maintain the artificial black middle class, even running companies that lose billions.

Aug 5, 2011 9:03 AM

so at what point will anything have happened "under Obama's watch"?

Aug 5, 2011 9:05 AM

the taxpayers sent shit like Barney Fag back to Congress over and over again

Aug 5, 2011 9:13 PM

if this sticks, Obama is dead.  The jackals will start circling and taking chunks with increasing boldness

Aug 5, 2011 9:21 PM

rotfl...don't start cashing those checks yet.

last time interest rates went apeshit, so did gold...upward.  This is sovereign default risk, here, bitchez

Aug 6, 2010 1:29 PM

It would be easier to sympathize with the Palestinians if they didnt fuckin SUCK so much

Aug 6, 2010 1:45 PM

this report was anemic like Karen Carpenter was slightly underweight

Aug 6, 2010 1:51 PM

No, MONEY is their god.  This is a tribe who's historical love of money was so profound that many have named themselves after it.

Who do you think Paul was talking about in his famous quote?

While I'm up, jews DID do it.  Those who did it are jews.  Does this mean that all jews are culpable?  Of course not.  However, it's inarguable that this is yet another financial crisis with the Tribe's fingerprints ALL OVER the crime scene.  In fact, it's hard to conceive of their having a more monolithic lock on the financial system than they do.

Those who are not rabid zionists and not complicit and who also oppose this would be wise to get out in front of it and solve the schism in their own clan.  Before it turns into another purge

Aug 6, 2010 1:55 PM

Sometimes you are astute, and sometimes not.

Listen, you stupid fuck, Gold production peaked in 2000.  A decade-long price runup as supply rate inexorably declines is to be expected.  Were gold like houses or nasdaq stocks and actually NOT suffering from a supply rate cap that is *decreasing*, I might agree with your bubble bullshit.  However it's not.

One cannot simply conjure gold as houses or .com stocks could be.  It has to be mined.  And the maximum amount that can be mined YoY is DECLINING.

Aug 6, 2010 9:24 PM

Every time a little deflation rears its head, the Fed stomps on it.

That's their function.  The thing is that gold still fetched the same amount of the other things being liquidated, but we were having a GLOBAL money market run in progress.  The dollar was days away from vaporizing.  The Fed would have HAD to backstop every FDIC, every MM - in fact, that's precisely what they DID do.

There will be no dollar scarcity, not as long as they are freely conjurable by the central bank.

Aug 6, 2010 9:31 PM

This is just insane...does your fuckin brain orbit around the FRN?

You're aware that there are other currencies out there, right?  Why the obsession over the dollar gold "price"?  I get the whole spec trader trying to gamble to get something for nothing thing, but shit, man...look at the POG *not* just in FRNs.  You'll notice something.

Gold is an alternative to paper currencies, not without some drawbacks, but also with many advantages.  When I take a trip to the 3rd world, I and many like me, pack some Krugs because these things have value in ALL currencies, in ALL nations.  There is nowhere that doesn't accept gold and where gold is not translatable into local paper.

In fact, lives have been saved by having a K-rand sewn into clothes after a robbery or theft.  Gold is disaster insurance.

WTF are you precious dollar folks going to do with your 25% gain if they lock the banks due to another global run?  THAT is what the paperbulls are hoping comes back!

In fact, they are salivating at it, HOPING we get another Sep 08, where we were literally HOURS or DAYS at most away from total systemic collapse.  Do you HONESTLY think you'd be able to access your FRNs at such a time??!  If you do, are you stupid?

Review what late 08 had going on; a global, multitrillion dollar run on all MMs, a total collapse in commercial paper, interbank lockup, etc.  The problem, yes, was apparent cash scarcity due to deflationary redemptions and default.  So the Fed provided cash.  It's either that or they will LOCK the fucking banks and you will NOT be able to cash out of anything.

Being a paper bull liquidationist vulture means you are planning to go through a nightclub AFTER the fire has started and AFTER the stampede for the exits has begun, in order to pick up dropped wallets and cellphones.  Are the paper bulls seriously stupid enough to believe that THEY have a secret exit that nobody knows about?

Aug 6, 2010 9:38 PM

Less "dense" than the earth?  You're sure the earth moves away a tiny bit, huh?  "sure"?

Ever heard of Isaac Newton?

Aug 6, 2011 10:30 AM

fuck Chris Rock.  Wake me when his demographic is able to something other than destroy everything they come into contact with.

FNM/FRE?  half black.  USPS?  Ditto.  Fed Gov?  365black and hiring and promoting like crazy for the "right" kind of diversity.

Look at NYC..98% of shootings by blacks and hispanics.  Atlanta and Philly schools? Massive cheating scandals.  Minnesota state fair in Milwaukee?  A black mob breaks out, witnesses all said they just started going after white people, pulling them off motorcycles and out of cars and beating them.  This just happened and is one of haf a dozen recent incidents matching the same profile.  There's a white guy who was in the ICU because he was beaten so badly by a group of blacks...where is the national attention?  Where is Sharpton?  Where is Chris Rock calling for healing?

So, really, fuck Rock and his stilted and self-deceptive comedy schtick.  Nobody is adding up the severe carrying cost of his demographic.  Nobody wants the "hate facts."  NOW in retrospect it was RAYCISS to have lent to the people that CRA and anti-redlining said it was RAYCISS NOT to lend to.

The USA is in terminal social decline...this type of crminal malfeasance, corruption, and fraud didn't used to be our stock in trade.  But I'm sure this is nothing that the new half black Spiderman from Marvel won't solve.

All these behaviors that you guys champion a return to are not some shared cultural norm, and you need to wake up to that fact.

Aug 6, 2011 10:49 AM

you have to examine the demographics of poverty now to understand that such programs, if enacted today, would be blasted as rayciss for lacking diversity

Aug 7, 2011 1:35 PM

they would if their entire bar was predicated upon being the sales end of a ponzi

Aug 7, 2011 1:39 PM

China has systematically destroyed their environment and misdeployed capital to negative ROI pursuits all in order to appear western.

So, people will move back to where, polluted farms with all the water going to try to prop up the ponzi?

Aug 7, 2011 1:41 PM

that will change.  Science and engineering used to be all white people.  The competency is there, and at some point, an engineer will be seen again by our women as a catch (instead of a black thug with a criminal record) and then the career will be more desirable.

Right now, engineering is not glamorous and not particularly lucrative compared to a lot of bullshit professions.

Aug 7, 2011 11:41 PM

eager to see whether Bama's popularity rating goes down faster than the SP500

Aug 7, 2011 2:35 PM

and if they "ban gold," you buy Platinum.  Pt and Pd are so astoundingly rarer than Au that it makes their relative dollar prices ridiculous

Aug 7, 2011 3:32 PM

you stupid dipshit, at no point did he say ANYTHING about the US's deserved credit rating, NOR about other raters.

What he DID SAY was that SP is stupid and useless and only did this downgrade as a political statement to try to rehab their reputation.

Maybe you just can't fucking read?

Aug 7, 2011 3:48 PM

I had sold my LEH puts that Friday expecting a better set of terms.  Left $125k on the table on that one by not waiting till Monday lol

Aug 7, 2011 4:07 PM

yes...recall that in 08, the most savage counter-trend rallies (and 07) were when things were abolutely the bleakest.  When we were hours away from shit coming apart, BSC fail, LEH fail, etc.  The only time when stuff went really down and stayed there was during the LEH days but it effectively bottomed a month or two later then we got the 100% nonstop rally.

Aug 7, 2011 4:14 PM

I wouldn't be surprised if SP issued an upgrade tonight or before open depending upon how bad things look overnight.  SP doesn't have any credibility anyhow

Aug 7, 2011 4:30 PM

wtf difference does the Treasury Secretary make?  He doesn't set the fiscal policy nor propose budgets nor pass them.

Fire the Congress and Obama

Aug 7, 2011 4:47 PM

this COO guy is an idiot.  He loves China because government pours money into the pockets of people like him.  Fucking 5-year plans from government, wtf.  As if idiots in government who get there because of connections are the reason for economic success

Aug 7, 2011 4:53 PM

China is great for oligarchs.  That's all you need to know.  Far more fertile slave class to strip mine.

No laws against dumping toxic shit in the water...it's a COO's wet dream.  Maximum profit and you can always count on the French to keep their environmental laws so you can escape there to live.

If someone complains, the government steps on them to preserve the business class.  Everything is accomplished by bribes and corruption and the government operates with impunity.  If thousands die or a building falls over, or half the nation gets cancer, the government stands ready with tanks and propaganda advising the people "not to make trouble" for their leaders, lest those leaders "lose face."  It may as well be ancient feudalism.  The Chinese middle class exists as a propaganda tool, nothing more.

Aug 7, 2011 4:55 PM

China's national policy is to steal anything they can.  They have no concept of western culture of cooperative business.  Their plan is to exploit and make the 5 year plan by any means possible.  If this costs them customers in the long run, who cares?  They have the same mentality as western executives.  Make as much money as possible for ME NOW and fuck the world.

Fuck the people, fuck the air, water, land...everything. 

Aug 7, 2011 4:57 PM

ROTFL...sorry, man, not the oil supply to make that a reality.  Nowhere even close.

China is prosperous for oligarchs, which is how the western business class wants it.  Think about it, they could run over a peasant in their Mercedes in china and do it with impunity, just like the nobles of old wouldn't slow their carriage an iota if a peasant kid was in the street.  They'd just run them over.

Aug 7, 2011 5:43 PM

The UK still has AAA?  WTF...they are more bankrupt than nearly anyone and have been doing more unsterilized injection aka QE than we have.

Aug 7, 2011 9:35 PM

211 now...bovespa up big so is Mexico...go figure

Aug 7, 2011 9:41 PM

you're never going to be an oligarch, you sniveling, misanthropic bitch.

People like you are what's worst about PMs.  You're a vulture who just wants to be a slumlord.

Aug 7, 2011 9:42 PM

but the UK is in even deeper shit than either and it is still AAA

Aug 7, 2011 9:47 PM

how is this shit relevant?  The states with bad credit are already known...SP follows the market again

Aug 8, 2011 1:01 PM

yes, people should scroll down kitco and look at the price action in other currencies.  Gold is actually weaker today in the USD than most other issues, exceptions being CHF and JPY.  It is mass murdering in BRL, now above 2700...clear breakout.

CAD about to come back below parity and AUD looking not far away from it on current trends.

Aug 8, 2011 1:04 PM

Gold now at price parity with Pt...paging doChen lol

Last time this happened was the depths of 08, IIRC.

Aug 8, 2011 1:06 PM

THEY have no intrinsic value.

Please let one bugz say that in response just once.

Let the MSM bleat that stackers are idiots.  Housing wasn't in a bubble either; they all said so.

Aug 8, 2011 1:12 PM

I disagree with the notion of this price manipulation on COMEX.  Also, Silver is NOT a truly precious metal; its main purpose is industrial.  Strip off the demand from industry and you have a sustainable price far lower than here.

Platinum and Palladium are FAR rarer than gold; a savvy metalhead would steer you to them, not to silver, which is readily abundant and whose production has not yet peaked.

Silverbugz are pure speculators, nothing less, nothing more.

Aug 8, 2011 1:15 PM

45?

Look at oil- IT IS TELLING YOU which direction silver is going, ok?  Silver is now PRIMARILY an industrial metal, not a wealth reserve.

Anyone expecting a silver explosion in the face of oil price crash like this and where rarer semiprecious (meaning significant industrial demand component) metals like Pt or Pd haven't budged, is a fool.

You have been bamboozled into looking at Ag as a precious metal when it is only semiprecious.  Gold is standing up right now as the liquid wealth reserve.  The other metals don't have the stones.  I can't tell you that it makes SENSE, I can only comment on what IS.

Aug 8, 2011 1:16 PM

and, of course, that ratio is fixed, right?  It NEVER fluctuates?

Aug 8, 2011 1:17 PM

it's Transitory

Aug 8, 2011 1:29 PM

ask yourself who the loudest people around here pumping that meme were and you'll have your answer

Aug 8, 2011 1:30 PM

why? nobody cares about the gold price anymore than they care about Obama's 57 States

Aug 8, 2011 1:39 PM

confiscation leads to political turnover..this is why it won't occur.

Taxes and bait will accomplish it.  Those smart enough to not take the bait will be fine.  But many of the sheeple will GLADLY accept a "guaranteed return" from an insolvent government.

Those who don't may elect to take their 401 and cash it out, but the choice will be yours.  It's like in the Matrix; the shit won't work by force.

Aug 8, 2011 1:40 PM

we are facing a Depression and you are unconcerned about demand metrics for industrial metals?

When WTI has shed 20%?

Nevermind that your response is a ridiculous nonsequitur as a consequence of presenting a false dilemma.

Aug 8, 2011 1:48 PM

Well, in a hyperinflation event, EVERYthing will go up.  Not just Silver.  There's nothing special about Silver in a hyperinflation.  Buy frickin whatever you want in such a case. 

However, in a deflationary depression where sovereign default looms, there is something very special about gold vis a vis silver or other semiprecious metals.

I have to ask you...WHY silver?  Make me the case for it in lieu of gold.  I can't think of a single advantage it has OTHER than the pumpers say it's going to the moon and CRIMEX will implode and JPM and all the rest of this conspiracy shit, which they CANNOT prove beyond a preponderance.

See, I don't like to traffic in dreams if I am stacking real things; I like things I have evidence for.

The stated goal of silverbugz is to speculate and catch a mania.  That's not my idea of sound "investment" nor "wealth preservation."

Silver is "cheap"; so what?  I submit that among the semiprecious metals, Pd's price figure is most disconnected from its supply metrics, crustal abundance, and industrial demand.  It is indistinguishable in many respects from Platinum both in what it is used for, how much of it is out there, how much of it is produced, and the ridiculous scarcity of significant producing mines.

Those who might purchase silver due to an expectation of price appreciation due to increase in industrial demand from novel usages are investors.  However, they got in long ago and got out at 50.  Those looking to "get rich" due to tulip mania are speculators.  As a consequence, this means that your statement about everyone's being a speculator is demonstrably false.

Aug 8, 2011 1:54 PM

I took a relatively sympathetic girl to a coin shop once and her commentary revolved around how much that guy in front of us "wasted" - ok maybe she didn't say that but she was derisive in terms of how much he spent - on bags of junk silver.  I think he plunked down maybe in the 'hood of $5k?  And it was looked at by her as a purchase of something, an expenditure.  No concept of that those bags might now fetch 4x as many FRNs or that you could buy the bags one day and literally bring them back the next day for the same FRNs (obv minus the spread), whereas the other things you would "spend" on effectively go to 0 when you walk out of the store with them.

Yes, yes, I know 0 is an exaggeration; I have picked up Hermes shirts on StyleForum for $45 instead of what, 600 they cost brand new.  Got a brioni cashmere overcoat for $700, NWT, retail price prob north of 7 grand.  So, yeah, there is SOME recovery value for the shit most people "spend" money on.  This is the mental conceptualization of the average person about PMs.

Aug 8, 2011 10:02 PM

everyone long must be looking for a bounce to GTFO.  This is reminding me more of 08 than anything else.  However, those countertrend rallies were vicious.

At least Nero was playing a musical instrument instead of duffing it up on the golf course...

Aug 8, 2011 10:06 PM

oil is getting totally crushed...we'll see how low it goes and for how long.

If you were an interventionist looking for a man-on-the-street inflation metric to aim for, it'd be oil.  You'd let gold go its merry way.

Gold is either pricing monetary blitz or sovereign collapse.  Oil is pricing severe and sudden contraction.  Brent still at 99, however.  Seems like the Brent price in excess of 120 leads to full stop conditions.

Aug 8, 2011 10:09 PM

the construction of credit-based monetary systems make it a mathematical certainty

Aug 8, 2011 10:13 PM

back in like '05, I predicted the Rogue Wave financial event was going to be the sovereign BK of Japan based upon these very realizations.  I thought '09 and we're a good couple years past that.

There's no way out; everyone needs to devalue because everyone's money is based on debt.  The mercantilist exporters need the debt to fluff their own economies too.

Aug 8, 2011 10:16 PM

if they do, then BAC, C, DB, and a bunch of others go tits up.

The massive deflationary blackholes that used to be MER, CFC, BSC, etc., are still out there; they were just concealed in larger banks.  They are chewing their way to the light from the inside out.

Aug 8, 2011 10:17 PM

yeah, countries that are in economic collapse produce nice edgy music and bitchez without jobs are way less Prince Charming fantasy picky.

Aug 8, 2011 10:21 PM

yes, but rarely.  Last time they were like this was in 08.  Gold was in the mid 700s, Pt at like 750

Aug 8, 2011 11:56 PM

daily RSI in the 16s now...waterfalls like this in the past have led to immediate Fed intervention, the effects of which have lasted usually 5-6 weeks, but sometimes as short as 3 days (TARP) and as long as 2 years (QE).

If they don't intervene, it seems clear that any bounce is shortable...BAC and DB will be going tits up

Aug 8, 2011 12:30 PM

GOLD, bitchez

Aug 8, 2011 12:32 PM

didn't they get MER crammed into their belly too?

Aug 8, 2011 12:32 PM

Citi is a .gov bank at this point

Aug 8, 2011 12:55 PM

totally nonsensical.

Aug 8, 2011 12:57 PM

nah...hell won't break loose.

The NFL season getting lost would cause more riots than gold hitting 2k.

The average salary doesn't have enough left over to buy an ounce and even if you saved it, the missus would just bitch you out for wasting the savings on some fucking coin instead of that new flat screen that everybody else has.

Aug 8, 2011 3:26 PM

Tyler Durden doing the endzone dance lol

Aug 8, 2011 3:57 PM

wish i was as bold as I was in 08...sheeit...saw that H&S a mile away but this one confirmed.

1100 points in a few days; this is just a waterfall crash goin on.  As we're not rocketing north, one must assume that the QE3 is not sailing tomorrow.  The rally started a week before they announced last time and any leak like that would have muted this crash.  In fact the leak was probably SP downgrade plus there will be no QE3 tomorrow

Aug 8, 2011 6:06 PM

haven't seen declines like this since 08...given that every significant piece of news is leaked at least days in advance, I am coming to the conclusion that there won't be a QE3 anytime soon.

If that is the case, that simply hasn't been baked in.  QE1 was real fuel and QE2 was more fumes.  QE3 would have to be mainline injection to get a fix going here.  So many tasty shorts at 1350 and I actually called that top but didn't act on it. 

These slides have been simply brutal this past few weeks.  I mean 500 backed up by a 600.  There'll be a relief rally at some point and it will rip off faces, like that 1000 they hung back in 08.  However, at every turn up back then it was time to get short balls-deep.  I dunno here, but it seems really like we've hit a trend change in overall psychology.  When you see A/D ratios like this, just fking everything is getting bailed on.  In 08, gold went south hard, but now we see it spike bigger than USTs and even the gold stocks were spared the carnage today.

Aug 8, 2011 8:12 PM

it's saying the same thing oil is

Aug 8, 2011 8:21 PM

silver, oil, platinum, and palladium are signaling serious economic contraction, deflation, and sovereign default looming.  So is gold

Aug 8, 2011 8:23 PM

and unleash he will...no choice.  These past few days are reminiscent of 08 but what's looking "priced in" at this point is that there is no confetti immediately forthcoming.

If the semiprecious metals begin to catch a stiff bid, it would indicate massive monetary inflation imminent.

Aug 8, 2011 8:24 AM

Gross has his fuckyou money in an old money portfolio full of dividends.  But he's got to get yield for all his customers to keep the funds rolling in.

That's all he wants; he wants his jew vig.  400 years of ponzi have convinced people that by virtue of having some "capital," that they are entitled to yield as if by magic.

Aug 8, 2011 8:26 PM

exactly...even those who recognize limits don't want to accept their implications.

The PO denier idiots had rested everything on nuclear and then Fukushima happened and now they just put their hopes on unicorns

Aug 8, 2011 8:28 AM

ZOMG...4x background.

Any coal plants within a couple hundred miles?

Aug 8, 2011 8:31 AM

yeah, except Gross has fuckyou money now and his own island.  He ain't gonna be killing himself for the life insurance

Aug 8, 2011 8:31 PM

look, just because you can imagine something doesn't make it a technical fait accompli, ok?

Aug 8, 2011 8:32 AM

bbbbut...S&P has UK rated AAA!  France too

Aug 8, 2011 8:37 AM

if you had to write a conspiracy plot script, this would certainly be the catalyst to galvanize the public into accepting austerity.

The real problem is that ROW has been living off of our monetary creation for decades...our debt has been the base upon which their growth was leveraged and none more so than China and Japan.  Think about the reality of how much currency appreciation they should have experienced through all of this export but which has been abeyed by wanton currency manipulation.

Aug 8, 2011 8:38 AM

the problem with this theory is then who gets to run up the massive debts necessary to keep the exponential compounding going?

In whatever time frame debt needs to double, it has to double again...who is going to do that?  It is the nature of interest-bearing monetary systems to implode themselves.

Aug 8, 2011 8:40 AM

The Chinese are thieves as well; they shouldn't whine about being robbed.

Aug 8, 2011 8:43 AM

You all complain about all the Congress and the Presidents yet your countrymen elected them.

Real people went to the booths and pulled levers for these guys...even Barney Fag and Chris Dodd, two of the most corrupt reps in existence, along with Nadler and Rangle.  They are reelected over and over again.

So just wtf exactly are you trying to save?  You're just trapped on the Titanic but you don't have the wheel nor can you convince the other passengers of a problem.

Aug 8, 2011 9:03 PM

Look, take it from a guy a couple sigmas to the right of you, OR just go the fuck out on teh interwebz and goggle something like "silver industrial demand" before spouting off, ok?

Well OVER HALF of silver consumption is industrial.  I already posted this data in rebuttal to tmosely-claven in a previous argument on this very topic.  You would do well to review it before embarrassing yourself further

Aug 8, 2011 9:15 PM

do you people even bother to CHECK your facts before talking shit?

Silver investment demand was around 200Moz in 2010.  Gold's investment demand Q1 2011 was approx 310 tons or around 9Moz.  I'll leave the GSR to you and I assume you can multiply by 4.

Aug 8, 2011 9:19 PM

I will get into a pissing match with idiots who don't know that their semiprecious metal's supply HAS NOT PEAKED yet (whereas Gold has), and that well over 50% of the demand is INDUSTRIAL.

If industry falls of the cliff into this madmax situation they hope for, there will be so much slack supply that silver will fall to single digits absent hyperinflation.

Aug 8, 2011 9:20 PM

so that move down from 50 never happened?  I dreamt it?

STFU

Aug 8, 2011 9:26 PM

no, I can't think of an advantage.

Instead of shittalking like you usually do, POST ONE.

Try it sometime, idiot; instead of talking crap and waving your fucking hands, actually make a cogent argument.

Demand IS increasing?  In a depression?  WTF alternate universe of idiots do you inhabit?  Silver demand WILL increase assuming economic growth continues, but if we crash like you retards say we are gonna - and that would be one HELL of a crash to make silver back into money sufficient to make a retard like you into a newly-minted slumlord - then the industrial demand for all of this silver goes POOF, bitch.

And that's significantly more than half of existing demand.  Fuckin hell, why am I repeating myself?  I already TOLD YOU THIS SHIT and gave you the effing LINK last time.  Go fucking read it for once.

Aug 8, 2011 9:28 PM

As a matter of fact, Claven, you are the worst offender with accusations of "he's a PSYOP" everytime you get your ass handed to you in an argument, which is just about 100% of the time.

Try rebutting his argument on its MERITS, instead of handwaving and bluster?  RNR may be irritating but he's not a freakin psyop, ok?  You're just stupid, so EVERYONE looks like a professional poster to you.

Aug 8, 2011 9:31 PM

are you fuckin on something?  Post sober, please, so it's at least vaguely coherent

Aug 8, 2011 9:33 PM

Platinum and palladium stocks have been drawn down, moron.

Russia sold its stockpiles into the market.  WTF are you talking about?

Or more pertinently, can you get ANYTHING RIGHT?  Ever?  Give it a try:  do research before talking.

You think it's unlikely that the fertile would pair off?!?!  WTF...they'd all KNOW THEY PASSED THE TEST, you fucking IDIOT.

This is proof positive you wouldn't make the cut.

Aug 8, 2011 9:37 PM

I don't fucking care what PEOPLE see or think.  PEOPLE are idiots!

What matters is FACT, ok?  Don't talk to me about fuckin PEOPLE and their stupid opinions.

Pt, Pd, and Ag are SEMIprecious.  I CLEARLY defined what I meant by that.  They are partially precious but significantly industrial.  Gold, OTOH, has almost no industrial demand at all.  It is truly a precious metal in that sense of the word.  Like how a freakin VVS D/E/F diamond is precious.  Its value does not derive from its Mohs hardness.

Pt and Pd are, like Ag, semiprecious but far rarer than Au or Ag.  In addition, you really ought to read where the entirety of the supply of them comes from, how stockpiles were sold into the spot market, and how low the production figures are, and what the astounding utility of these metals are.  Long Pd as a "true value" trade makes more sense than Silver.

But that's not what silverbugz are about, sense.  They are about mania.

Aug 8, 2011 9:38 PM

huh?  Where the fuck do we mine this shit from if not the Earth's crust?

You did graduate highschool, yes?

Aug 8, 2011 9:40 PM

at WHAT POINT did I say there was a 1:1 correlation in the price moves of these two commodities?  Yeah, that's right, I DIDN'T SAY IT.

You can't make a cogent argument so you INVENT something to argue against.  We call this a logical fallacy, a strawman.

Industrial demand for silver is inelastic?  ROTFL.  Good lord, I'm all ears to hear where you came up with this stupid idea...

Aug 8, 2011 9:53 PM

the severity of the recent moves mandates some kind of intervention tomorrow...this is looking eerily reminiscent of 07

Aug 8, 2011 9:57 PM

oil is just getting woodshedded.  This would seem to give some cover to QE, but if they were gonna QE3 tomorrow, it'd already have been leaked and manifested into the markets.

Maybe we are going to see a return to those emergency Fed announcements like late 07 thru early 08.  Where the shit was LLD and you are like they simply have to announce a discount rate cut today.

The severity of the forex moves is also noteworthy

Aug 9, 2011 1:03 PM

Silver doesn't belong at the bottom of that pyramid if Platinum and Palladium aren't there.  Hell, may as well add Rhodium and Ruthenium too

Aug 9, 2011 1:21 PM

with yields like this, we SHOULD be AAAA

Aug 9, 2011 1:48 PM

Fruit, bitchez

Aug 9, 2011 10:23 PM

daily RSI was 16 man...that is deeply oversold and a bounce was due.

Aug 9, 2011 10:52 PM

The OP totally misses the point.

The reason real rates are so low is because there is just nothing to do that yields a higher rate.  Credit is a supply and demand product like any other.  If there is NO demand at 5%, the lenders cannot expect to lend at that rate.  The rate is dictated by the aggregate economicality of a particular currency regime.

This is how Japan has been at ZIRP for 20 years; there's nothing left really to do in Japan that yields more than that.  There's simply no demand for credit there at 1%

Aug 9, 2011 11:11 AM

there's no room for rising rates because the respective economies cannot generate the yields necessary to pay those rates.

Aug 9, 2011 12:58 PM

what DID work for normal people?

In the USSR, it was dollars, right?

Aug 9, 2011 4:15 PM

the REAL economy is NOT on the verge of collapse.  The financial economy IS.  And they are holding everyone else by the nuts.

There is no reason your car won't run if the dollar vaporizes tomorrow.

Aug 9, 2011 9:36 AM

I guess we are made of stronger stock than those wankers; we can carry 1kg.

You stuff it in a backpack, and don your 7.62, filling the sack up with some extra magazines.  Pistol up on your hip, etc.

Dec 1, 2010 1:16 AM

does 6.02x10^23 mean anything to you?

Dec 1, 2010 1:26 AM

U gonna hook yer peeps on here up with some weight at spot?

Dec 1, 2010 1:28 AM

is that why pussy is still valuable??

Dec 1, 2010 10:01 AM

Germany's troubles with bonds is admission that the sophisticated players see an end to growth.

Economic activity transitioning from growth to "within means" will make GDP look like the oil price chart.  We will have to fall much further before bouncing back to the new normal

Dec 1, 2010 10:28 AM

the message coming from the bankers is pretty unanimous - austerity.  They honestly seem to feel like they've done us a favor with all this QE covering the interest owed on the money they've conjured out of their asses to "lend" to us.

Let me translate Yellen's spiel:  "GET BACK ON YOUR FUCKIN WHEELS, GOY HAMSTERS"

Dec 1, 2010 10:36 AM

expecting everyone to rally to this cause by virtue of a symbol that just makes them "get it" in an epiphany is unrealistic.

They don't get it.  If you say something about the banksters, they'll just reply with "Busch bailed them out with TARP" or something, dragging the thing back to D/R cheerleading.

I know because I tried this for years, prior to TARP and the big crash where I basically begged educated coworkers to see that both parties were the same.  They simply did not WANT to make that realization; there was more comfort in picking a side.  This must be cognitive dissonance; they realized that I was right but rather than accept that painful truth, it gives more solace to just pick a side and feel good by vicariously "winning" through that team.  You get to cheer victories and be righteously indignant over the other side's flaws.

What most people remember from Fight Club is Brad Pitt's abs.  Things are going to have to get really bad before anybody seriously mobilizes and the twists and turns such a movement takes lead to strange outcomes sometimes.  To satisfy righteous indignation, you really need a good scapegoat.  It's hate that mobilizes masses, not rational thought.

Dec 1, 2010 10:38 AM

I simply CANNOT get behind such a vulgar premise

Dec 1, 2010 10:42 AM

criminals like this need to be handed a shovel and forced to dig their own grave

Dec 1, 2010 10:55 AM

one needs to study the works of propagandists to understand how to craft a message.

You need to put people into that picture.  Take a salt-of-the-earth white couple, all american, and have a verminous looking man with teeth showing pounding a ball and chain onto them.  This conveys a particular message; it's easy to get.

Thetas and other star trek shit won't cut it.  Neither will the euro symbol as nobody knows what the fuck that means.

You have to understand how to play to EMOTION, not logic.  Take a look at bama's campaign symbology, the work of jews like Bernays, WW2 propaganda.

The enemy has to always look like a rat, have a semitic hook nose and whatnot, or be a corpulent banker shaped like a hog.

Everyone has been to a mall...use the "You are Here" red dot.  Put a white guy, preferably blonde on a hamster wheel, looking desperate.  Put his woman on her knees with a leash around her neck.  Place the leash in the hand of a rat-looking corpulent banker with the top hat and money spilling out of his pockets.  Red dot says YOU ARE HERE and it is on his chest or even on both of their faces, which is good because it simultaneously dehumanizes the woman and man and leaves the face up to the viewer (they are meant to and will substitute their own subliminally).

Trademarking is about having symbols that are fanciful or arbitrary acquire secondary meaning.  The swastika is a powerful symbol because of all the source-specific connotations it has.  Because of the secondary meanings.  It provokes EMOTION.

Any attempt to create a symbol for the "revolution" or whatever it is must eventually acquire THIS.  It is the sine qua non.  The symbol must not attempt to explain itself nor is it the gold fucking record on Voyager trying to explain the human race in a few pictures.  Stick to black, white, and red. 

Dec 1, 2010 10:58 AM

no there aren't.  You're completely full of BS.

I hadn't seen Fight Club until a month ago.  most guys don't fight, they are fucking pussies. 

I know it's hard for everyone around ZH to come to grips with the fact that the broader world doesn't GET us

Dec 1, 2010 12:01 AM

the wireless providers are capping GBs now...only the grandfathered "unlimiteds" have anything resembling a decent price point.  And that's subject to just having your plan cancelled, fuck you style.

I used 17GB one month on my unlimited ATT PDA plan and I was concerned that if I continue to roll like that, they will just shut me off and say take your business to verizon or else fork over more cash.  As I am right next to a tower, I get 3G+ exceeding 2Mbps and could stream NFLX via a tethered windoze smartphone

Dec 1, 2010 12:02 AM

yes, we DID pay for that infrastructure.  We used bonds and tax cash to PAY the telcos to lay lines that THEY NOW OWN 100%!  How awsumz is that

Dec 1, 2010 12:06 AM

lol...I used to work for Comcast and was responsible for implementing some of these hairbrained ideas.  Don't blame me, blame the marketing idiots.

You want some cool info?  Comcast uses a wholesale plan to provide wireless internet where they put you in a bucket.  They use heuristics to predict how much data you will use and will roll you into a lower bandwidth wholesale plan that is cheaper to THEM but will still charge you for whatever your subscription level is.

So, if you want to fuck Comcast, get a particular data plan, underuse, and then rack that mfer up.  They will pay overages to the end providers like Sprint and Clearwire.

Dec 1, 2010 12:20 AM

The wireless infrastructure relatively sucks.

ALL cellcos RELY on people who have data plans NOT using them.  There simply is nowhere NEAR the bandwidth for people to get off of wirelines.

FIOS gives me 15/5 which translates to 18Mbps roughly on a speedtest.net check.  AT&T's 3.5G service gives me 1.5-2  Mbps and I could hit the tower with a pistol.  I could get the clearwire 4G off the same tower, but to be truthful, the pricing is at rough parity with the data portion of FIOS

Dec 1, 2010 12:57 AM

ah hell, I'd go all eugenic on they azzez

Dec 1, 2010 4:54 PM

yet you can't get peak oil? 

you're 100% right here; modern skyscrapers would not and could not topple.  Even a smokestack couldn't.  It has to do with centripetal acceleration and tensive vs. compressive loading.

The real issue w/ 911 is why and how did WTC7 collapse?  Every report of "911" addresses that building as a footnote.

Dec 1, 2010 4:55 PM

comes up fine in my browser...

Dec 1, 2010 4:56 PM

"when you have to shoot, shoot...don't talk"

my kids know this as the "Tuco Rule"

Dec 1, 2010 8:12 PM

perhaps this is why the Fed didn't transfer Germany's gold back to them.  Collateral.

The dollar sits underneath 75% of world debt.  You need dollars to make your payments?  You borrow them from the Fed

Dec 1, 2010 8:15 PM

you can't.  Gresham's Law is an evolutionary maxim.  Any nation that tries sustainability is destroyed in the growth game by nations that use the debt conjure steroids

Dec 1, 2010 8:22 PM

so we've got 3/4 of the world's debt in dollars.  Wonder what this latest euro contagion is going to cost them in terms of swaps.

So their banks pledge euros to us for our dollars which they need for repayment.  We're gonna JACK the euro.  Fed will have tons of euros, has their gold in their basement.  LOL.  Hopefully, we can buy the Continent with our side of the swap.

As they were dumb enough to borrow in our currency, we can set the price for borrowing it.  And, even now that we hear the dollar is dead and everyone is pissed we're printing it, CNY is still pegged to it and freakin countries are still sourcing dollar debt for their own purposes, even ones who beef the USD, like Brazil

Dec 1, 2010 8:27 PM

Well they fired a lot of dealers in republican districts and those who made contributions to the Bama's opposition.

Dec 1, 2010 8:32 PM

uh yeah, but dude, Tetraethyl Lead is some pretty toxic shit.  Great compound and all that but not a good thing to be belching into the air

Dec 1, 2010 8:48 PM

this is a classic red herring strawman.

How about if they blew the sun up?  WHERE IS THE LIMIT, PEOPLE?????

Let's reductio ad absurdum together now, it's fun!

Dec 1, 2010 8:50 PM

False dilemma.  Check.

Man, you are a TOUR DE FORCE of logical fallacies

Dec 1, 2010 8:51 PM

has the NSA succeeded in hacking skype yet or does anyone know if the ebay takeover has led to backdoors in the AES?

word is that the intelco hates skype

Dec 1, 2010 8:57 PM

GWT thinks literally everything is a master conspiracy.

These people are so all powerful that they fail miserably constantly.  LOL.

Potent directors fallacy

Dec 1, 2010 9:16 AM

probably was why the price sold off so hard; the insiders figured there were no bigger idiots left

Dec 1, 2010 9:25 AM

Potent. Directors. Fallacy.

please make peace with this; the other guy is right.  Obama does not appear that smart to *me*; if he were, he would not say some of the utterly stupid shit that he does.  Certainly he is more intelligent than average, but he is not in any way brilliant.

Dec 1, 2010 9:30 AM

did you expect a dude who is that noticeably feminine to be any good at ballin'?  He ain't pimp material, he ho material

Dec 1, 2010 9:31 AM

coins have the advantage of being better looking and more stackable (as the bars come in packets now).

If you are trading bogus silver in such a scenario, you will be taken out and hanged as a counterfeiter.  Your silver will be as good as your word.

Dec 1, 2010 9:34 AM

uh...the tally sticks were one of the most successful monetary regimes of all time.

In fact, there is no true gold standard like the goldbugs envision that has ever worked.

Dec 1, 2010 9:40 AM

JFC, this is idiotic.

How much is the furniture worth to YOU if you have to abandon it suddenly?  the guy makes a valid point about silver that I've made before about ammo and farms and bunkers.  If you have to ditch and run in the middle of the night like a jew in '39, these heavy things are worthless.

This is why jews today have the deposit boxes with gold and diamonds in them

Dec 1, 2010 9:48 AM

au contraire...historically, the ratio was jiggered differently in Britain vis a vis the LMU.  That is where the arbitrage ensued.  I know politicians seem to believe the sun orbits them, but when Isaac fucking Newton tells you the ratio should be a particular value, you GO WITH THAT SHIT. 

But they had other plans; the end result was a giant vortex sucking gold into GB from the Continent and enabling the eventual standing up of the Sterling Bill, which is what enabled GB to become an empire.  Non-liquidating (aka, not real) gold bills can be conjured and "lent" fractionally.

Dec 1, 2010 9:50 AM

write your congressman, maybe they can pass a law

Dec 1, 2010 9:54 AM

they wanna pick off the euro periphery one by one.

provides dollar strength for the Bernank AND lets the EU plutocrats take control of more of the Risk board.  I mean it's a goddamned affront to those guys that shitholes like fuckin PORTUGAL still have any sovereignty at all!  The Germans want those goddamned hamsters BACK ON THE WHEEL

Dec 1, 2010 9:56 AM

nice vertical $10 gold drop in the span of minutes...what is this, the PM fix?

Dec 1, 2011 1:11 PM

best decade in what, FRN terms?

Dollar creation can be effected very easily.  I shop for groceries and I don't see FRNs getting more worthful despite the cries of deflation.

Dec 1, 2011 1:13 PM

stfu moonbat.

The media is controlled here and not there because of the Holocaust.

As if the endorsement of a fucking cabbie is a sign you're on the right track...lol

Dec 1, 2011 1:28 PM

yes, because these computers can just spit out oil with some spare CPU cycles

Or did you mean plenty of garbage, which is what all of this processing power leads to?

I will grant that solution of a fusion containment problem would be more probable with significantly increased computer power, but we're FAR too busy blowing up shit to be bothered putting research into carbon semiconductors.  And we've got to increase diversity in the government as Job 1.

Dec 1, 2011 1:30 PM

5.56N is a decent round, but it's not going to cut it without the rest of the force pyramid behind you.

SOCOM has already up-calibered after being saddled in too many losing firefights with M4s. 

Dec 1, 2011 1:33 PM

I'm not getting the problem here...antipathy towards jews by germans would have been justified after the financial collapse and bolshevik incursions which divested nearly the entirety of Germany into jewish hands, no?

How many germans starved to death or died of disease as a result of the actions of a few jews?  How many souls are on the Warburgs' tabs?

Dec 1, 2011 1:43 PM

lol...gold has its own fundamentals of supply and demand which affect price.

Gold's production peak was in 2001.  As oil grows in scarcity it will become necessarily MORE expensive in real terms to extract gold from the ground to meet whatever demand there is for it.  At the same time, gold reserves in ground are subject to depletion along a decreasing supply curve.  What this means is that gold production risks (like any commodity) falling off a freaking cliff at any point.

You cretins simply DO NOT understand deflation.  Deflation does not mean that your stupid FRN gets more worthful.  It may against SOME things, but other things will simply NOT BE PRODUCED.

I have counseled morons like you and Douchinger repeatedly to get off your couches and to go to places like Brazil, where IRRESPECTIVE of demand, the prices of things remain high.

When the car dealers worth through their inventory in a liquidation, they will not continue to just operate and sell at a loss!  The FRNbugz can't seem to grasp this.  All the excess inventory will go and then prices will reset HIGHER, and permanently.  There will be LESS people with money to spend on stuff like this, less products sold, less less less.

The precious FRN is transient and in only certain asset classes, like disposable consumer goods and such shit.  Businesses HAPPILY operate at far LOWER volumes in the 3rd world.  The single focus is a PROFIT.  If deflation halves the volume of cars that can be sold in the USA, or halves the number of TVs, do NOT expect the manufacturers to drop prices far enough to try to "make up a loss" on "volume."  It won't happen.

They will dump inventory and close capacity down.  Then prices will go up to whatever their profit point is.  If you don't like it, fuck you.  That's how business works.  Production falls in a contractionary environment, not just consumption.

Again, as I have said repeatedly, reality is backwardating.  Things in existence NOW will command a premium compared to promises of them down the road. 

Dec 1, 2011 1:45 PM

eff that, get her the yellow ticket

Dec 1, 2011 1:47 PM

yeah...um, don't take advice from pumper shills on ZH.

It's not like you weren't warned, man

Dec 1, 2011 1:49 PM

so if you have to run in the middle of the night because of an industrial accident or some other catastrophe, wtf are you gonna do?  I mean, wtf is this, time capsule for anthropologists or something?

Dec 1, 2011 1:50 PM

stop harshing my mellow, bitchez

Dec 1, 2011 1:56 PM

you are in the running for the biggest idiot around here.

Even mosely-claven has STFU trying to dispute peak oil.

When 54/65 oil producing nations reached peak and entered production decline, you'd think that the reality of this would simply be undeniable.  But morons like you who are clearly a combination of stupid and arrogant (Downing Effect) continue to deny it.

This is the problem with you, Max; you VASTLY overestimate your own intelligence and FAIL to comprehend others'.

A decline in flow of oil did not force society to leverage; leverage continued because it is its own exponential growth animal.  The growth of net energy inputs permitted this edifice to remain upright.  Now that oil is declining in production, we are seeing all of the leveraged critters implode spectacularly.

Dec 1, 2011 1:57 PM

no echo chamber is a good place to be.  And people here aren't waked the fuck up.  They refuse to be.  Too scary.

Dec 1, 2011 10:16 AM

again, the US's demographics numbers are being distorted by undesirable minorities.  If you subtract them out, the stats put us at the top of the 1st world.

3rd world nations aren't 3rd world because of all of these symptoms, they are because of the people who live there.  You cannot just build a bunch of roads and redistribute a bunch of money and presto, be Norway.  Unless you have people with attributes on par with an average Norweigian, you won't have anything like Norway.

Dec 1, 2011 10:21 AM

why the hell would you want uneducated people voting?

Dec 1, 2011 10:24 AM

how is social mobility for your aborigines?

same issue here...I'm honestly tired of morons talking about the US when we have a 25% third-world population distorting every quantitative metric.

Dec 1, 2011 10:30 AM

uh...education is only as good as the students in it.

Nothing else really matters.

Nobody immigrates to live in a slum; they tend to create conditions similar to where they left however.  That is because it wasn't the magic of geography that was to blame for the slum - it was THEM.

It always has been PEOPLE who create their culture, not the other way around.

"Access benefits"?  WTF...yeah they access the fuck out of every benefit they can find, which is how they never turn revenue positive.

Dec 1, 2011 12:11 AM

replacing oil is nearly irrelevant.

You have to not only do that plus find something that can grow as well, otherwise, it's the same thing

Dec 1, 2011 12:13 AM

yep

Dec 1, 2011 12:21 AM

i hear an iphone 4s can get the pussy over there

Dec 1, 2011 12:40 PM

wow...antisemite!!!  RAYCISS

next you'll be saying that the MSM message on jews is false too and you will be SHUNNED.

The MSM only lies when it speaks on matters not pertaining to race or ethnicity.  All the myriad hard data demonstrating quantitative inequality is WRONG; the MSM is speaking the truth.

Dec 1, 2011 2:02 PM

Oh, gotcha.  I'll take this one

The decreased growth rate of net energy input pre-peak caused aggregate profitability to decline toward 0.  In order to make this up, the financial institutions had to use massive leverage to cover for the incredibly meager profitability of endeavors.

Like how China tries to make 1000 more factories all producing shit that earns a fraction of a cent per unit.  There's nothing for them to do to earn a higher profit, so they attempt to make the money through volume.  That is how financial leverage has worked.

Net ROI of our economy has been declining for some time now; consequently, increasing amounts of leverage are necessary to extract profit.

Leverage is EXACTLY what the word describes.  As the horse gets nearer to death, you have to whip it harder.  As the burden gets heavier, you have to use more leverage to move it.

As oil supply now declines, there are a lot of firms trapped in positions of leverage against a DECLINING credit base, where they are having to scramble for dollars to repay.  Some simply cannot.  Musical chairs is an apt analogy.

The decline in net energy means a decline in all things being "done," as power is what does doing. 

Dec 1, 2011 2:03 PM

discoveries PEAKED 47 years ago, dipshit.

There are LESS and LESS new finds going forward.

Please, do YOURSELF a favor and STFU.

Dec 1, 2011 2:07 PM

more diversity...give them ALL a plaque for saying stupid shit

Dec 1, 2011 3:01 PM

their first passports may be different, but 90% of them have the same 2nd one

Dec 1, 2011 3:02 PM

that is fuckin disgusting

Dec 1, 2011 3:09 PM

only cheaper until the local gestapo bashes your door in, drops a joint on the floor, then seizes the cash as the obvious self-evident proceeds of terrorism/drugs/insurgency/organized crime.  And then gives you a bill for the scratch on their battering ram and the rounds they expended shooting your dogs.

Dec 1, 2011 3:15 PM

what matters is what oil is traded in.  Period.

You get major producers to accept other than dollars, you're fine.  The US is not going to the fucking SDR unless the entire oil exporting world bails on the petrodollar.

Dec 1, 2011 3:16 PM

sounds like affirmative action

Dec 1, 2011 3:36 PM

yes, I know...anything they say about race and ethnicity is 100% true.  It's just got to be.  Fuck the data.

Dec 1, 2011 3:38 PM

u talkin bout me?  Nah man, I am alive and kicking.

I intend to be relentless on this "MSM only tells the truth about stuff I want to believe" meme.

Dec 1, 2011 3:46 PM

no; it is not by design...it is emergent complexity, which is not the same.

Here's a good example.  We all think "zero tolerance" is stupid.  That's because it is.  In the schools systems, privately, off the record, NOBODY will defend it.  They all think it's stupid too.  Yet.nobody.does.anything.  They all ADVANCE it in fact.  If you speak to them privately, in their private frame, they agree with you.  They're not idiots.  They're not malevolent.  In the public context, they become agents of the system.  It's almost like a split personality.

The system has its own mind, just as a school of fish appears to have some hive brain as well.  The system has its own demands.  Perhaps it's a byproduct of natural selection such that people who adhere to the system's goals achieve preferential outcomes.

I am among the few people I have EVER met who will stand up and speak out against the hive mind's goals.  And I routinely watch people WHO AGREE WITH ME directly oppose my actions.  They may even come AFTERWARDS and say, btw I agree with you, despite having JUST not only contradicted me but attempted to ostracize me from the hive.  People defend the hive and the hive's mentality even if they disagree with it.

This is a highly interesting animal phenomenon...like lemmings collectively marching to what they invidually would fear.

I would bet when I drop a race grenade in here that half the people who call me RAYCISS actually agree with me 100%.  In fact, their opinions on these things would in many cases scare me.

Dec 1, 2011 3:48 PM

LOL...i write so far above my audience in my professional life that they ask me to dumb it down.

There is no curiosity out there.  Nobody wants to acquire perspicacity into the inherently abstruse.

Dec 1, 2011 5:56 PM

well, I like fellatIO from your mom...does that count?

But, no, I'm not using petitio principii

Dec 1, 2011 5:57 PM

I believe the average grade level among blacks is probably 5th or 4th in terms of reading.  Large swathes are functionally illiterate.

No, more money, AA, and racial setasides will not fix this.

Dec 1, 2011 6:16 PM

so what are we runnin here, 150B a month?

Dec 1, 2011 6:19 PM

The greens need to start protesting the Volt for all the emissions it pollutes the atmosphere with....when it burns up

Dec 1, 2011 6:20 PM

all the kids in lake woebegone were at the 4th sigma from their own mean too

Dec 10, 2010 1:24 AM

yep.

the euro carried the weaker nations into FAR more debt than they would have been able to get into under their own currencies.  And, now the austerity of the compound interest will be far more savage.  Either that or they bail the eurozone and just default.

Just taking the pain of the balance of payments deficits and consequent inflation is a much better bet than dealing with ANYTHING that the IMF or central bank pimps are trying to push

Dec 10, 2010 10:02 AM

...and gold takes a nice $17 slide

Dec 10, 2010 10:04 PM

agree on that one

Dec 10, 2010 10:06 PM

my 401k is up...

I've been in yield plays, energy, miners, and some bonds.  Been a good year or two in it.

Not everyone is sitting in dumbass tech funds

Dec 10, 2010 10:38 AM

in the defense of the society, ethnic minorities are far more likely to commit serious crimes requiring incarceration.

Dec 10, 2010 10:41 AM

yeah, we WANT China to increase prices.  The trade balance is untenable even at this figure.

the whole point is to get them to repatriate dollars by buying things made here.

The problem China has is that their industry isn't profitable NOW, much less with less dollar revenue.  If trade flows normalize somewhat, they are facing an incredible contraction.

Dec 10, 2010 11:01 AM

yeah, um, XB360 does not in any way shape or form obliterate the competition

Dec 10, 2010 11:09 AM

yeah; isn't this the most garbage, self-promoting piece of crap you've ever read?

And all the nonsense talk about "tackling" the big economic issues...what, like letting your beloved banks go bust, Krapkari?  Someone needs to spray paint fuck you on this assclown's forehead

Dec 10, 2010 11:12 AM

how the fuck did society ever morph into something where these idiots think it is their job or role to SOLVE problems???  Congress's job is not to fucking think they are supposed to be fixing shit.  All they do is progressively fuck it up.

Just GO HOME, Congress.  Go the fuck home, leave us alone please.  Let the bankrupt banks get run and shut down and their goddamned crooked executives ruined.

Dec 10, 2010 11:19 AM

A&Pcan'thasbailoutz?

Dec 10, 2010 11:56 PM

YES, asshole, redistribution.

This situation is created through SYSTEMATIC efforts BY the very top of the 1% to capture income from the other strata for themselves.

The executives never LIKED sharing corporate profits with rank and file workers.  They don't LIKE that you are allowed to fly on the same planes as they do and stay in the same hotels or that your kids could go to the same schools.

So they came up with shit like NAFTA and outsourcing in order to make the corporation more profitable and drive their own bonuses through the fucking roof.  They bribed whichever Congress they needed to in order to systematically repeal every protection.

Now we have a parasite class looking to remove every job other than their own to fucking China or Vietnam and, no, not pay a dividend, but pay a bigger BONUS.  Every laid off worker's salary went into some executive's pocket as a bonus.

I love how each and every idiot who defends this crap has some jiminy cricket fucking dream that they can "work" their way up into this plutocracy.  DREAM ON, morons.  Those seats are already reserved for the plutocrats' kids.

The top 10% should pay less taxes because they EARN LESS and the other 90% should pay more due to EARNING MORE.

Oh, and on my way out, fuck you.

Dec 10, 2010 11:58 PM

1950-1975 didn't have a MONSTROUS GOV'T LEVIATHAN EITHER

Dec 10, 2010 3:46 PM

there's no productive enterprise to speak of left.

I live in DC suburbs and Harris Teeter is packed constantly...sort of a midway between Whole Paycheck and a Safeway in terms of price points

Dec 10, 2010 3:55 PM

yes; let's "hold people accountable."

But NOT the people whose malfeasance was exposed by the leaks, just the people who did the leaking.

KILL ALL WHISTLEBLOWERS

Dec 10, 2010 4:10 PM

he was coined Eric "Place" Holder by the Washington CityPaper during his stint as US Attorney for DC.  This is the furthest thing from a conservative rag that there could be

Dec 10, 2010 4:17 PM

they'll probably try to grab him and have him hauled here or work some extradition strongarm to get him onto our soil.

THEN we will see a complete aboutface by the Administration on the propriety of military tribunals as opposed to criminal courts.  For terrorists and brown people, we want to red carpet.  For a white guy, fuck, summary execution.

Dec 10, 2010 4:19 PM

brown people HERE, though, are all that matter to the administration.  It's enough to make your head spin.

Dec 10, 2010 4:24 PM

he's right.  All the other ethnic groups should call the blacks out over their violent crime, illegitimate birth rate, and allergy to education.  To not do so is cowardly.

Oh, but wait, he probably didn't mean that...he meant we are cowards for not passing reparations or something? 

Dec 10, 2010 4:33 PM

ah, 911...the excuse for everything.

I had arguments with anti-government types and 911 was what it took for them to succumb and swallow the line.  They abandoned all skepticism.

Said that 911 could not have been prevented.  Well, shit, it sure could have by locking the cockpit doors!  But when you point this out, the cognitive dissonance is so bad, their desire to go batshit bunker mentality so great, that they just repeat what they said again.

911 was also a huge intelligence failure due to bureaucracy, not lack of info.  911 had precursor attempts, one in Paris just a couple of years earlier, same MO - muslims in a plane, intending to fly it into a landmark.  The El Al guy was on Matthews on 9/13 saying we lock our doors and the pilots will not come out, ever, no matter what.  And he was forced to repeat this simple statement in response to "but what if they are cutting up the flight attendants?"

911 did not need to happen and should have been easily prevented and the answer was not and is not TSA groping kids or porno Xrays.

Dec 10, 2010 4:38 PM

people really must have misread BNW or else they Cliffs'd it off of the internet.  The notion of "self-determination" in an epsilon or delta is utterly absurd.  This was all explained in ch 17, and the friction in the plot was not between freedom and fascism, but between sacrifice and self-gratification.

People strongly need to read that work and understand the counterpoints therein.  The epsilons no more wanted to be alphas than the converse.  Everyone was happy in their particular role.

Dec 10, 2010 4:51 PM

the XB360 was #1 in the gaming space until the 1st and 2nd party Sony developers actually learnt how to develop for the CBE.  Since then, it has been no contest in terms of technology.  Now, even shops who'd sworn off PS3 are having to admit that to realize their visions, they are going to have to bite the bullet and come back to the power it has.

If you want innovation, the XB360 is about as cookie-cutter an architecture as there could be.  Sony/Toshiba/IBM broke new ground with the CBE.  As for the Kinect, it's a gimmick; independent reviews of its contect have shown that to be mediocre.

Stick to misusing words like "penultimate," seriously.

Dec 10, 2010 5:02 PM

who in the fuck would want to access a computer via these interfaces?  It'd be slow and make your arms totally tired.

This was the substance of the first professional gamer reviews of the Kinect...it was a nice gimmick and pretty cool but as far as a machine-human interface?  It's a joke.

The Kinect does nothing to realize the dream of having a cellphone be able to do all of these things.  Meanwhile, the CBE is being placed into TVs and other embedded applications as people have finally gotten their heads off of the standard CPU/GPU architectures.  The Cell can decode 48 SD mpgs simultaneously, even the Air Force is buying PS3s to build their own supercomputer.  If you want a technology revolution, seriously, you need to focus on technology and not gimmicks with graphical tigers.

The wetware last mile interface is not solved by gimmicks like Kinect.

Dec 10, 2010 6:11 PM

silver's been a reliable sell outside the upper BB and a buy at the mid band.  RSI made multiple divergences on the day chart dating back to mid october but the declines were muted.  Watch the 27ish range

Dec 10, 2010 6:12 PM

this isn't even remotely true.  Deflation like you suggest reflects a shortage of money

Dec 10, 2010 6:15 PM

in deflation, the fiatscos get in line with the other claim tickets, aka, the bonds.  They denominate a share of real assets.  The growth may go but the elites don't care so long as they maintain feudalistic control of productive assets.

It's good to be Earl or Baron no matter the era.

Dec 10, 2010 6:19 PM

not just that, but the US was on course to be the world's #1 oil producer for the next 40 years.

We won WW2 because of oil, and we dominated the century because of oil.  The ME continued the ponzi in the 70s; the great Saudi fields weren't developed much until well into the 1950s; this saved the US economy for the following 30 years.

Dec 10, 2010 6:28 PM

DXY will not affect the dollar versus commodities as much as you believe.  Forex rates between a declining euro and relative rise in USD don't dictate dollar price of commodities.

Dec 10, 2011 4:11 PM

dude, people like you have cost a lot of people a lot of money with your shameless pumping.  Right at the height of your manic cheerleading, silver crashed almost 50% in price.

The physical did not disconnect from the paper; it is still widely-available, in quantity, for right around the spot price.

Nothing you predicted as imminent came true.  In fact, the opposite happens.  Perhaps you need to accept that you are the equivalent of a chicken little and are actually a MASSIVE FADE.

People who've gotten rich off silver have done so by fading people like you, cliff.

Dec 10, 2011 4:13 PM

oh, gotcha.  I just need to hold silver for 2000 years to get rich like the pumpers promised.  Or do I have to hold for 100 years?

I don't think there's anybody still alive who's been holding PMs since 1813, idiot.  Really, you need to re-read what you type before posting, unless it is your intent to sound stupid.

Dec 10, 2011 4:14 PM

I am really expecting more whipsaw consolidation.  After big moves, gold typically does nothing for 6 months to a year.

Dec 10, 2011 4:32 PM

The Rothschild BOE is the epicenter of a nearly 400 year ponzi of creditmoney.  In fact, this bank is a charter member of the FRBNY.  For centuries, London was the world hub of trade in real bills, the largest exchanges were there, and the Sterling Bill radiated power all across the world.

Like I said, all those Rothschild palaces did not build themselves.

Dec 10, 2011 4:41 PM

the problem with this thesis is that those who attempt to trade it by holding paper or eDollars are really trying to grab wallets dropped in a nightclub fire stampede from inside the nightclub while the inferno is building.

Sure, you MIGHT get rich that way, but the downside risk is immense simply because you can't guarantee a way out unless you are fucking batman.

A deflationary collapse like that will remove the moneyness of what we think of as money because underlying all of the FRNs in existence (save a small few) are unpayable debts.

In fact, what WILL happen in such a situation is that there WON'T be fire sales of assets.  Look at the mortgage market if you don't believe me.  People just STOPPED PAYING.  And in the case of corporations, everyone will run off with all the physical assets.  There won't be anything left; it'll all be looted from the CEO's desk chair down to the bathroom fixtures.

If you're in a company in collapse, steal all the pens and free sticky notes you want.  This is in fact exactly what happens to foreclosed homes.  They get stripped.

After a deflationary collapse, in EVERY CASE, you find a worthlessness of the notes of the bankrupt State, and a permanent reset higher in the aggregate price level.  This is because the law of positive ROI remains. 

Dec 10, 2011 4:43 PM

really, it matters not anymore...the financial powers that be are cousins who jet across the Atlantic back and forth from these two centers.

Each has its place.

Dec 11, 2010 1:50 AM

yes this was true in the past...nowadays the big barons put their fortunes into foundations, so the wealth can live forever

Dec 11, 2010 1:54 AM

are you fuckin stupid?  I think so.

ANYONE who believes that trade tariffs were the cause of the GD1 is a fool.

Dec 11, 2010 12:10 AM

Horsefuckingshit

Unions were strong because they had the upper hand on labor monopoly.

And so they forced executives to give up the profits.

You idiots who think what you think about fucking unions...wtf?  Would you RATHER all those corporate profits go into the pockets of the executives?  Because THAT'S WHERE THAT SHIT IS GOING NOW that the unions have sold out and been NAFTAfied.

BUSINESS is still very profitable on Chinese labor...and those profits GO TO EXECUTIVES NOW.  EVERY worker fired, take a $40k salary.  The executives divide that guy's former paycheck up amongst themselves as "cost cutting" bonuses.

Your post is RIFE with bullshit; German and Jap labor was NEVER CHEAP and the cost of labor was NOT the problem here.  Germany STILL has high quality products and a trade surplus despite some of the costliest workers in the world.  The DIFFERENCE is that the executive class was not PERMITTED via trade policy by bribed legislatures to OUTSOURCE all of the labor!

Dec 11, 2010 12:24 AM

that's what, in the TOP TWO PERCENT of salaries?

Fuck me if that ain't rich.  And I earn it.

Dec 11, 2010 12:27 AM

now you carry water for the plutocrats on ZH?

The people most interested in taking away what YOU have earned are your OWN EXECUTIVES.

They are RIGHT NOW trying to figure out how they can replace you with an Indian so that THEY can divide up your former paycheck amongst themselves.

They don't give a FUCK about your story, your work ethic, your skills.  You are a human resource to them with a cost point that they are looking to shrink.  Because that is the SUREST way to increase their own bonuses, is to reduce the cost of the human resources.

Dec 11, 2010 12:35 AM

BINGO.

Those at the top are at the trough.  The regional labor unions opposed NAFTA, for obvious reasons.

The national union leadership, owned and bought, told them to shut up and supported it.  Ross Perot was not lying.

Now, here we are, you "own" a company, you don't share in the profits as a shareholder bc dividends are low as shit.  You work for a company, executives are right now salivating as to how to replace your human resource with a cheaper resource so that THEY can take the difference and pocket it!

So, if you're born into the plutocrat class, congrats.  I know a few people who found their way into this.  The richest people I know are connected to the government tit like a starving hog.  Times have never been better for them.  So far as for one to say that they didn't believe there was any kind of housing crisis (in 08)

Dec 11, 2010 2:15 PM

i saw the title and had to check to make sure it wasn't April

Dec 11, 2010 2:19 PM

hanged is the past tense when it is a person.  Hung is for wall decorations and stockings by the chimney.

Dec 11, 2010 2:21 PM

it's the motherfuckers that did 911!!!!

Dec 11, 2010 4:29 PM

the law doesn't permit you in many places to present death as a consequence.  The State wants to exercise a monopoly over the use of force

Dec 11, 2011 2:06 PM

oil is not going to unpeak no matter what we do with this stupid credit system.

You people need to wrap your heads around that.  The credit effects are a SYMPTOM, not a cause.

Dec 11, 2011 2:09 PM

again, no amount of credit bullshit is going to resurrect Cantarell or any other oil field that is in terminal decline.

Just get over it, get over your stupid savings and your stupid expectations of money "making money" by the pure magic of growth.  Get over your idiotic capitalism vs socialism false dilemmas.  NONE of it matters.

Nature is at the plate now.  The count is 3-1. 

Dec 11, 2011 2:11 PM

DATS RAYCISS

Dec 11, 2011 2:15 PM

delusional...it doesn't.

That's the thing you downing effected people don't get.  The scientists are MORE creative than you are.  They come up with shit you can't even grasp nor comprehend and your stupid little "imagination" or whatever you think you're good as as a conceit to cover for your inadequacy in math isn't the indispensible portion of the creative process.

Jimi Hendrix isn't a pile of shit in the overall scheme of things, nor are all the self-important artists in the history of the world.  People like Orville and Wilbur Wright piss on them.

Art trumps nothing...go paint me a fucking oil well.

Dec 11, 2011 2:26 PM

yes, austerity is the backside of the compound interest function where the usurer ends up coming and physically taking the ground under your feet in the land your forefathers built.

Dec 11, 2011 2:40 PM

Let me just give the abridged version of what IB is disclosing above.

"IF IB FAILS, YOUR MONEY IS GONE."

It's as SIMPLE AS THAT.  Brokers are in the business of trying to MONETIZE every single thing they can.  They lend your securities.  They lend the securities you have borrowed.  They lend your cash.  They lend anything in any account, anyWHERE, and there is boilerplate that permits them to do it.

IB borrows money, buys the stock for your margin trade and then lends that stock back to someone else for the cash.  At that point, YES, they probably play roulette with that cash just like all the rest of the cash the firm has access to.  When I worked on MS's NY money desk, they were doing $30B of repo transactions per day back in the early 90s.  This is orders of magnitude bigger now, trying to create money from thin air.

So who really owns anything at this point?  The answer is you own it if it's in your hands and hasn't fallen out of your canoe last camping trip.

If shit goes sideways, the BIG FISH have PURCHASED special "face down trap cards" (YuGiOh reference) from the Congress which WILL put their claims ahead of yours.  PERIOD.  Don't argue, don't dispute, don't question; accept.

Dec 11, 2011 2:42 PM

WTF good is that going to be?

they're going to have their lawyers REITERATE the boilerplate in the contracts you signed and then they will go and DO the opposite!

Dec 11, 2011 2:43 PM

good luck.  The exits in nightclubs are seemingly purpose-built to trap people in case of a conflagration.

Recognize that.

The REALITY is that the credit system NEEDS margin purchasers the same as the mortgage debt needed a physical person's wet signature to close the loop.  The actual mortgage was just the tip of a huge iceberg of credit growth.

Dec 11, 2011 2:47 PM

people fled to the suburbs to get away from crime and blight caused by a group that strangled the inner cities to death.  Decay follows this group everywhere.

It's not as if people WANTED to be a million miles away from everything...it was just a hell of a lot safer out there.  Yes, coddling this group of locusts as they migrate and destroy has caused top-to-bottom systemic misallocation of resources.

Dec 11, 2011 2:52 PM

nah...read more closely.

You buy the groceries on margin, you don't get to take them home.  The store then RE-LENDS (this is hyopthecation) the groceries you bought on margin to someone else and gets the cash back.  They then take the cash which was spun from thin air and play roulette with it; in the case of MFG, that was in-house repo transactions to finance the firm's internal margin position on EU sovereign bonds.  As shit got worse, MFG was forced to start intra-repoing segregated physical accounts such as actual bars of gold.

So, what the fuck do you or anyone else own in this situation? 

I called banking an evil many years ago because it is the speculation using OTHERS' money as collateral.  They get to gamble with your chips.  And we have shit like the FDIC and TARP to socialize the losses when they lose.  But they keep all the winnings.

When you people go out and meet the even dumber friends you all have, who don't "get it," use this analogy.  Bankers are gambling with OUR CHIPS.  When they win, they keep the winnings.  When they lose, they pass the hat to everyone in the casino to make the stack whole again.  Even cretins can grasp this.

Dec 11, 2011 2:54 PM

LOL...you don't get it, do you?  You really don't know, do ya?

Mfin it ain't gonna matter if these are PHYSICAL GOLD BARS in this brokerage; when the shit hits the fan, ALL OF THEM will intra-repo those assets to cover the FIRM's positions.

They WILL GAMBLE WITH YOUR CHIPS, ok?

Dec 11, 2011 2:57 PM

this is only what you understand now.

Beware of those face down cards before you play your next monster.

The big fish have purchased traps that will put them ahead of you in a liquidation.

Dec 11, 2011 7:20 PM

At NO POINT did I ever say people shouldn't own any silver you binary-minded idiot.

I said that they should NOT LISTEN to silver pumping moron shills like YOU as to how to allocate their wealth.  And I have correctly pointed out that real wealth in silver is too heavy to run with and may end up being a TOTAL loss.

If, for some reason, you don't have access to a TRUCK that you can drive out to wherever you're going, you face the possibility of TOTAL LOSS with silver.

1000oz bar is a mere $32k at today's prices.  That is 31.1 kilos.  Do you really think you can pack that?  That's at the upper limit of a professional soldier's pack and you ALSO plan to truck all your ammo and guns and the rest of it.  If you have $320k in silver, you are going to be forced to WALK OUT on 90% of your wealth even if you can pack 62lbs with you.

With gold?  $32k is a mere 18oz at $1700/oz.

Silver is a get rich quick scheme pumped on the internet by people who are MORONS.

Dec 11, 2011 7:21 PM

why, because everyone agreed with me?

wait until I push them toward their mental 3rd rails.  Everyone here is aboard with the fact that the brokerage/trading/market system is a scam.

But there are many planks of MSM orthodoxy they would defend with violence.

Dec 11, 2011 7:27 PM

STFU you frickin idiot

Dec 11, 2011 7:28 PM

the reason they can't get it?  Downing Effect

Dec 11, 2011 7:32 PM

in many cases they are prevented from moving closer due to black crime in the cities and the destruction and blight that they bring everywhere they are.

Fortunately, forward-looking cities are gentrifying to make them safe again

Dec 11, 2011 7:35 PM

oh yeah life is much better where they came from.  Turnkey 1st world countries like Rhodesia and RSA being destroyed in less than one generation, reverting to the natural state of the rest of the continent.

They brought Irish over in ships that weren't seaworthy.  Sharks learnt to swim behind them for the periodic free meals.

Dec 11, 2011 7:47 PM

moron...

there is no fucking shortage otherwise the price would go balistic and there would be no silver around.

they sure as shit wouldn't be selling it from coin shops to idiots like you

Dec 11, 2011 7:48 PM

stockpiles are supply when there is a systemic supply shortage.

You saw that in oil during the runup to $145.

Of course, cliff, you won't let ANYONE get in the way of your GET RICH NOWWWWWWWW silverbug pumper bullshit.

Scoreboard says $32 and that EVERY SINGLE PREDICTION you've made about silver has been WRONG.  You've cost a lot of people a lot of money.  You should be ashamed of yourself.

Dec 11, 2011 7:51 PM

you guys are idiots.

When this crash happens, industrial demand for silver goes off a fucking cliff.  And so does your net worth.

Look at what PLATINUM is saying to you right now, idiots.  It's RIDICULOUSLY rarer than gold and has industrial use, yet it's trading at a price discount.  So is Palladium.

Dec 11, 2011 8:33 PM

no, I am describing YOU, cliff

Dec 11, 2011 8:34 PM

you cannot identify silver at a glance, EITHER, you fucking moron.  Nor gold.  Nor a cogent argument.

Dec 12, 2010 4:55 PM

it won't be so long as the money is taxed out of existence.

Tally sticks or PURE fiat are not inflationary.  That is when government and government alone controls issuance and distribution of money.

the Fed's purchases will only be inflationary at the margins, aka, the deficit portion that is *not* taxed back by the sovereign.  That cash stays out circulating.

Insofar as the interest component keeps exponentiating, this game will end in massive inflation.  To prevent that, the money must be divorced from debt.

Dec 12, 2011 1:50 PM

I clicked it and Chuck Norris came up in the video.  Yes, I AM CHUCK NORRIS

Dec 12, 2011 11:49 AM

how many fucking times do you have to be told this...industrial users buy from PRODUCERS, not from the FUCKING COMEX.  Comex is an exchange...NOT A PRODUCER OR BUYER.

They simply make a market around the margins and provide cash-settlement.

Dec 12, 2011 11:52 AM

rehypothecation is just another word for bankers gambling with YOUR CHIPS.

They gamble with the stock you own outright and they even pledge the shit you bought on margin.

They will gamble with ANY chip you put in their possession, and are authorized to by law.  In the UK, there are virtually no limits whatsoever on this practice.

Dec 12, 2011 12:02 PM

HAHAHAHAHAHAHA...you've never seen a 2nd or 3rd world country, have you?

the police work for bribes and they jack people. The regulatory framework ALREADY exists for the police to legally steal from you.  They can drop a joint in your lap and take your fucking car and everything in it.

If their pensions vaporize, they will use their badges and guns and go take their pensions from the public.

In places like brazil, people with automatic weapons lighting up police cars serve as a rough check and balance on this type of police aggression.  In East Germany, the police power was mostly uninhibited.

We have the nice terrorism/patriotism nexus to steer us more toward the latter than the former.  Mow the cops, they find a rat/informer/friend of the State to rat you out

Dec 12, 2011 12:21 PM

expect worthlessness of all paper assets then, because they are all debt claims

Dec 12, 2011 12:22 PM

jibe ho

Dec 12, 2011 12:31 PM

real economy: negative profitability

solution: leverage and a virtual economy of MLM schemes

Note in EVERY SINGLE "recipe for a solution" we hear about how it will get "growth" going again.  That's a fuckin prerequisite, an axiom, of the system.  It's hundreds of years old and everyone has become accustomed to its running one-way.  It seems impossible that contraction could actually occur, yet that is where we are.

The monetary problems are a SYMPTOM, not a cause

Dec 12, 2011 12:33 PM

facebook is only good as a rolodex of acquaintances and to vet chicks you picked up on dating websites to see if they actually look like their pictures

Dec 12, 2011 12:34 PM

Silicon Valley doesn't have the demographics to ever look like Detroit

Dec 12, 2011 4:26 PM

Ghosts bitchez

Dec 12, 2011 4:38 PM

he has important relatives

Dec 12, 2011 4:40 PM

There's an entire TV channel essentially devoted to replaying Germany's last attempt at ridding themselves of the shackles of this enslavement system

Dec 12, 2011 5:20 PM

fucking bullshit, but whatever.

You idjits with your asinine ideas about how raw materials useless to natives were somehow "plundered" and then turned into useful manufactured articles by some sort of "theft" process....

Manhattan was useless to the injuns, that's why they took $5 for it.

Dec 12, 2011 5:25 PM

Delever and sell....to WHOM?  The Fed?  There's nobody with any fucking money to buy this shit and even if they did, why the hell would they buy the paper of bankrupt sovereigns??@!?!

Dec 12, 2011 7:42 PM

all that debt, needing to grow, needing to be serviced and nobody can do it.

Dec 12, 2011 7:45 PM

they need to print the Z1 and just be done with it

Dec 12, 2011 9:44 AM

I guess silver is "on sale" again?

Dec 12, 2011 9:46 AM

they are fighting it tooth and nail it seems.  But it took the Fed a year from BSC to make the announcement.

We quite possibly may be in for substantial additional selling

Dec 12, 2011 9:51 AM

I guess that "silver-gold parity" is going to have to wait until next week?

Dec 13, 2010 10:33 PM

Somebody JUNKED this?

Whoever you are, fuck you!  LOL, you're junking the fucking Laws of Thermodynamics?  wow

Dec 13, 2010 10:37 PM

Jevon's Paradox, bitch.

All you idiots with your efficiency shit...there are WAY MORE COMPUTERS NOW consuming WAY MORE megawatts!

Colonize other moons...HAHAHAHAHAHAHA.  Which ones, genius?

but...but...MUSIC can be duplicated.  Yeah, um all those electrons require power.  I can't be expected to waste time explaining this to you any further.  With all the extra efficiency, it's AMAZING that oil consumption has increased and so has electrical power demand, eh?

Dec 13, 2010 10:42 PM

what is so nightmarish about eugenics?

Dec 13, 2010 10:43 PM

well, that just means that you're stupid, that's all.

Because EROI is critically important.  If you EXPECT or NEED that ball to return more energy coming down than going up, then you're fucked, aintcha?

See, without surplus power none of this shit you see blinking in front of your face right now would exist.

EROI matters in economics because surplus energy is what does all the doing. 

Dec 13, 2010 2:02 PM

well, that is not technically correct.  both the DOI and the Preamble are referred to in Constitutional cases.  They have some weight but far less than the Document itself, more as a contextual framing thereof.

Dec 13, 2010 2:07 PM

yes, only VERY recently has the SCOTUS seen fit to find any limit whatsoever in the scope of the commerce clause and related dormant commerce clause jurisprudence.

Dec 13, 2010 4:11 PM

huh?  the final "days" of Rome?  History, anyone?

Um...this may come as a shock but the final "days" of Rome took CENTURIES.  There was no "moment" in which the empire fell.  It just petered out over half a millennium, and to a large extent was carried forward by subsequent empires operating out of its latter-day capital

Dec 13, 2010 4:23 PM

lotta people are simply clueless about history and why shit happens.  Lemme help.

The US won WW2, we all know that...but WHY did we win?  Why not Germany?  How was it that we and the Soviets won?  What was the war really about?

Well, it was about oil.  It just so happens that the 2 great 20th century empires were the world #1 and #2 oil producers for like 70 years.  Then, something happened to one of the empires.  Its production peaked.  This was in 1970...it was the USA.  And, all of a sudden, collapse seemed inevitable.  The BW accord came apart, inflation was rampant, seemed like we couldn't do anything well, and Mondale was even talking unilateral disarmament.  But, the powers here were clever and hooked the Saudis into having the USD sort of be buttressed by debt and ME production.  We sort of erected an imperial structure there and began encircling the strategic oilfields.  This is the petrodollar.  And it worked.  We roped the major ME producers into the dollar zone.

Meanwhile, the Soviets were going strong with their empire.  Until something happened.  They peaked in 1989.  And it shouldn't require great genius to figure out what happened next.  There were no great producers in their sphere of influence upon which they could further support their empire and currency.  We had made the necessary strategic moves 15 years earlier.  So, the USSR collapsed.

It was not bankrupted by Raygun or Star Wars.  You cannot "bankrupt" a nation that can print currency...it was bankrupted by inability to grow.  It could certainly grow "credit" and paper but it could not grow real things such as energy.  Its mitigation plan in terms of nuclear proved to be a disaster, i.e., Chernobyl.

The soviets could have "spent" whatever they needed, but they could not print oil or anything else real for that matter.  Assuming the maintenance of their empire required steel, if steel peaked and was in sudden deficit, the empire would have collapsed as a result.  This is simply how things work.

The US Empire is entering its 2nd phase of collapse as a result of the peaking of oil within its larger imperial sphere.  I mean, look around, a lot of 70's-ish talk out there.  The same sort of general malaise, lack of confidence, etc.  The system's energy inputs are no longer growing.

Dec 13, 2010 4:28 PM

our cellphones end up in the 3rd world as well, the used ones.

Also, I saw "Chicago Bears Superbowl XLI Champion" Tshirts and hats on africans on a documentary

Dec 13, 2010 5:50 PM

um...debt is senior to equity.  Debt gets converted to equity and equity gets converted to bagels

Dec 13, 2010 8:20 PM

The Fed got this muthafucka...short at your own risk

Dec 13, 2010 9:28 PM

JPM better like take over Peru or something; that way they can deliver.  Just use some Fed window cash to hire Xe and get it done

Dec 13, 2011 11:19 AM

get ready to rumble...they can't actually close the Strait "legally"

Dec 13, 2011 11:25 AM

the fact that FRN debt underlies 75% of the world and that debt must grow means we are able to marginally continue ganking countries fo' they golds and oils

Dec 13, 2011 12:26 AM

an .06?  Are u nuts?  These things fly well beyond small-arms range and you won't even know it's up there nor be able to hit it.  You'd need AA guns to hit one and the fkin thing is stealth...how you gonna even see it?

The doctrine for shooting at aircraft with small arms is the static wall of fire principle...anyone thinking that a rifle with a maybe 400 yard effective range is going to down an aircraft is a total fool

Dec 13, 2011 12:31 AM

Syria goes first...then Iran.

To do Iran is going to require some kind of uprising that we can "defend" and some kind of signon from "the Arab League" and shit like that.

Once we build the coalition for cover, we move.

Dec 13, 2011 12:45 AM

Concur.

This is a flying wing and would necessarily be aerodynamically unstable.  It did not glide anywhere.  If the control systems quit, it will glide like a pair of pliers.

There doesn't appear to be a fuckin scratch on the thing...not bad for supposedly falling out of the sky.

Dec 13, 2011 5:31 PM

I actually thought Gingrich would win the nomination when I heard he was running...something about it just struck me as probable despite the rest of the field.

The establishment wants him or Romney