Stacy Summary: Note that the income equality hit its peak just when the US went off the gold standard; since then the poor, the middle class and anyone who has to labor for a living have been impoverished through inflation, which always and forever favors those closest to the money spigot. With such a corrupt system, however, many will endorse this set up as they believe they have a chance to be that top 1% that takes 2/3rds of all income growth.
The More Gilded Age
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http://www.youtube.com/watch?v=yge311sFhC8
Lest We Forget Our Anthemic Promises…
@Max & Stacy
Could it be that you two are just as addicted to this as we all are.
Hahahaha.
Maybe you can have a holiday on the Bank Holidays?!
@Scott from Oregon
I think these guys will need to be pushed, they’re not just gonna jump.
Maybe it will end up like the French Revolution with US citizens taking these bankers to the top floor and pushing them out.
Madame Guillotine is too fast a death for these goons.
New song title:
“Push Yankees Push”
Graph illustrates the decline of the middle-class in America.
If we use fed reserve notes we “endorse” the set-up.
When you say labour,…does hitting the buy and sell buttons count? (there is some movement there!)
where’s Mep ? Mep if you’re reading this ,drop by for some coffee talk, max and stacy have coffee on ,milk ,sugar ? flat white ? two sugars please …
i was looking at 2 graphs the other day ,same time period for america ,[1920's - 2009 ] one graph was for rates for incarceration, the other graph was for private debt levels in america ,it was hard to tell graphs apart ,as they were almost totally identical ,somewhat disturbing. but i guess not really surprising, nearly all graphs seem to go parabolic from late 1970′s no matter what they are. might as well enjoy the view while we can.
I think the problem that Max and Stacy have is that there’s so much action going on they feel it a duty to report and act on it. I mean we are obviously living through a key point in history – it probably would do good to chill out and energise for the run in but that sense of public duty..
Regarding the debt and the bail-outs. I see a lot of people are sick of the bail-outs and there’s a wave of people who think that the economy is rigged. I reckon that it’s just going to come down to people refusing to pay their credit cards and mortgage payments. I mean you don’t really want to tell people to do that but there’s going to be a tipping point where everyone says they’re doing it so I’m gonig to as well.
Is this the revolution?
The tipping point is when the fat Bastards can’t get their food from walmart.
Mike
green back getting boost us stock going down. they may have pumped this market to high to fast
@Mike/Loverpool,…….I shop at ASDA, does that count?
i was watching a video of ben bernanke ,that guy just exudes anxiety from every pore in his body, he seems to have an aura of constant or permanent anxiety about him , this is hardly reassuring .?
A bit left field but here you go, has anyone had an Obama dream?
My girlfriend/maybe ex-girlfriend did at the beginning of the week and told me about it and then I had one the day after. I won’t bore you with the details, just curious.
according to this article the australian government is formulating policy based on the assumption that house prices will continue to go up
http://www.theaustralian.news.com.au/story/0,25197,25931551-601,00.html
See how today ends this will clearly set the tone for next week we are super overbought. They may have moved this market to high to fast I have never seen such a huge move like this just come out nowhere.
Australia, mm.
Got a question here. A large part of Oz’s exports are in gold.
So, the world is in a currency crisis and seeks refuge in gold. Price goes exponential and Oz suddenly becomes the richest country in the history of the world??
If not, why not?
black douglas , i haven’t had a dream about obama but i did have a dream about george bush , i dreamt that he was a broken down old disc jockey living in texas , what was your dream ?
@Black douglas ,.we will need gold to parabolic so we can pay off australias almost 2.5 trillion dollar private public /debt .here’s hoping.
Well.
My girlfriend is North American and was an Obamanoid. Her dream was that there was some magnetism between her and Obama. Later he turned up at her place and was doodling for a while and then left. The Michelle turned up immediately saw the doodle and got really angry. Then girlfriend reassured her that nothing was going on and Michelle believed her.
I take this as Michelle being the US people (who are kind of married to the president right) and that in the end she didn’t betray them..
Me? I was in the bank and Obama was the bank manager. I was about to get some hugely unmanageable charge and I was outraged. The manager – Obama saw my reaction and immediately cancelled the charge..
Haven’t tried to figure that one out yet..
quick break down australias debt , reserve bank australia figures as from Prof keen. almost 2 trillion dollars private debt . plus almost 100 billion dollars junk corporate bonds , plus public debt 350 -400 billion dollars. these are minimum figures used by prof keen and are supposedly beyond dispute . don’t expect to be to just google these figures though [.they don't want you to know] . this is the land of ‘ happy banking’. it’s different here like everywhere else.
Off topic
Hanky Panky Paulson pwned.
Not so strident now are you Wank Paulson, some first class mumbling and stuttering on display there. And stop doing that thing with your little finger!…Frickin’ freak!
http://www.youtube.com/watch?v=8kOG-gVn4Ck
hmmmm……..Thankyou for sharing your dreams with us.interesting ,we will have to wait and see if dreams really do come true ? do we have any dream catchers here ?
@vagabond
Broken down old DJ in Texas. That sounds like genious comedy sketch. You gotta do it man, you gotta do it. He’s obviously back on the bottle and rambling away all his ugly secrets (like Madoff). You just have to pick the tunes and Youtube is yours.
Australia. I know they’re up to their necks in it. I’m just trying to work out if the gold price spikes will cover it and then some. Is it possible?
One thing for sure the shorts have been getting the snot beat out them badly. I dont anybody was short has any money left to short
One thing I remember when I read Jim Rogers book was this
if you think price can’t go any higher your wrong
@Vagabond,……Re:DreamCatcher
Did any of you hear a HARRP : (
@ Black douglas ,thankyou for your kind words but the joke about gw as a disc jockey comes from reference already made to tony blairs days as a disc jockey at oxford , his ‘spacematic disco ‘ days ,later changed to his running of the spacematic disco economy complete with flashing coloured christmas tree lights that have we have all been dancing to ever since. someone please turn off the music ….turn the lights on .thankyou.
@Stacy
i thought you two were going on VACAY? have some sex or go scuba diving or something.
have the fun that i can’t (right now)
@Dedo ,…not yet but perhaps soon .i’ll let you know ! ; ) ciao
@ Mike Liverpool ,..what are thoughts on British pound ? ,..where do you think it shall likely go from here ?
You know with Blackstone Group LP Chief Executive Officer Stephen Schwarzman cashing out (why would he leave at the bottom….enough is never enough with these narcissists) and the recent year of bankers panicking feverishly for obscene chunks of money from the public trough like its a last gasp effort or a blow off top in pilfering…maybe this graph depicts a turning point?
http://www.iacmusic.com/Uploads/18307_10_6_2007_6_23_16_PM_-_FERDINAND_PIC.jpg ‘Remember Ferdinard ‘ Ferdinard was a thorough bred race horse and winner of the Kentucky Derby 1986 a Beautiful Horse. he was sent to Japan where he was killed in a slaughterhouse because he was no longer considered ‘ a winner’, 90 % of all race horses in Japan end up this way ,.most Kentucky derby ‘winners’ also end up this way because that is where all good race horses go to retire. Peta in America posted footage[not linked here ] of his last minutes at the slaughterhouse something that i would not want anyone to see so have not posted the link . but please spare a thought for our animal friends.link attached is a Beautiful picture of Ferdinand in his prime. next time you see ‘ Remember Ferdinand ‘ you will know why , steer clear of the so called ‘ racing industry’.and the race track , each time one of these Beautiful creatures dies like this a bit of our humanity goes with it . The Racing industry is Barbaric. Thankyou Friends .
credit default swap derivative
Just the name of that sound like a claymore mine
I think maybe Goldman should liable and all assets seized for fraud. It was a meaningless piece of garbage design as a destructive financial instrument and a attempt to completely over run the US government and seize control with financial dominance they clearly have been waging financial war against the people of the USA
Then they have the nerve to give themselves ten’s of billion in bonus money. You know why Bernake is sweating bullets and sound like he scared to death is because hes in bed with Goldman not saying that’s the why he wanted it that was the system when he took over. He didn’t have the balls to stop it.
The flip side of bettin’ that you’re going to be in the .01% club, is the fear of being left behind in a society that does not look back.
@Mike/Liverpool: (eh, fat bastards…)
January 19, 2009 12:23 AM
Michael Shedlock said…
Some decent ideas but a ludicrous conclusion.
“Hyperinflation in China will be a monumental event
Because China makes most of the world cheap consumer goods, it will export its hyperinflation around the world. This means that no fiat/paper currencies will survive this with its purchasing power intact. Some will lose all value (dollar) while others will only survive but experience a loss of purchasing power (yuan, euro, yen, etc…). ”
What an amazingly ridiculous conclsion. If there was hyperinflation in China it would be the Yuan that goes to zero, not the dollar. Just like Zimbabwe.
There is absolutely no mechanism by which China can cause hyperinflation in the US, no matter how much China prints or does not print.
The article seems to be written with a pre-ordained conclusion even though no case was made for it in any of the preceding points.
Mish
January 19, 2009 3:31 AM
Eric deCarbonnel said…
Hi Mish,
“There is absolutely no mechanism by which China can cause hyperinflation in the US, no matter how much China prints or does not print.”
I have to respectfully disagree. China does have a mechanism capable of effecting prices in the US. As the US’s biggest supplier of consumer goods, Chinese exporters will have to pass on their rising costs or go out of business, which means either Wal-Mart shelves will either be empty or prices will go up.
Inflation is China’s next export
In the simplest of terms, the price of goods depends on the balance between supply and demand. For example, when the demand for goods rises (ie: the money supply expands), the price of goods rise.
Hyperinflation in the US will come from the supply side. When China depegs and the dollar’s purchasing power crashes, imports into the US will dry up. This means the supply of goods in the US will suddenly shrink dramatically while the demand for goods remains roughly the same. With the same amount of money chasing far fewer goods, prices in the US will soar.
http://www.marketskeptics.com/2009/01/hyperinflation-will-begin-in-china-and.html
PS: Loved your entry on Unsold Car Images From Around The World
Vagabond,
Given I missed the Blair metaphor.
Ferdinandism – Is this the process of robbing pensions?
Even Warren Buffet stated we are in war and have been Pearl Harbored. Who was doing the bombing Goldman Sachs and that’s a direct quote
“I take this as Michelle being the US people (who are kind of married to the president right) and that in the end she didn’t betray them..”
ARRRGH. WE are not MARRIED to OBAMA.
Please hit repeat.
My advice: don’t date airheads.
@BlackDouglas:
The bankers and the corporate heads have been seen in bed with Obama, but no one here has heard anything about marraige. The media and the politicians keep rumours under wrap.
Goldman Sachs infiltrated our government like a bunch of communist spies then went to financial war taking power of the fed and monetary system treating themselves like kings or gods screw everybody else THIS ISN’T A BEST SELLING NOVEL THIS IS REAL!!!!!!!!!!
Stacy you are killing me with this chart. I can only vaguely remember what I paid to eat at one of those fancy outdoor neighborhood cafe’s in the Hamptons, back in the 70′s when the trend was at flatline. Westchester Co. must be some kind of yuppie living hell for all but the Blessed Ones living on Billionaire’s Row. Note how Nixon’s ‘Oil price-freeze’ and the ‘Hell NO We Won’t Go’ crowd possibly triggered that first short downward fall.
Speaking of NUMBER FREAKS, y’all really might enjoy George Ure’s musings over at http://urbansurvival.com
Today, for example, where he says:
..But now we have all the items in place for an ‘automated meltdown’ and how low it will go may depend on blind luck. If you read up on algorithmic trading, remember that the NYSE has stopped posting program trading volumes in steps.
The first step toward ‘blinding the public’ came a couple of years ago when the NYSE changed the rules to supposedly stop ‘double-counting’ of trades (buy side and sell side), but just a couple of weeks back even that was turned off. Reason? How are you going to keep people wandering haplessly into the Big Casino if you just put your life savings into something and trust machines to duke it out and hand you something back? Never gonna happen.
So here we are today: Rally on (for a while), staring into the dark abyss, and wondering “Gee, how come no one has audited the Fed since they stopped reporting M3…and you really mean my 401(k) money is just grist for some flash-trading programs?”
It’s all too much like the Clint Eastwood movie: “Are you feeling lucky, punk?”
Happy Numbering
All kinds of numbers out this morning. Import/Export prices, Retail sales, initial unemployment claims, and inventory levels of business.
Do I care? Nope. The biggy is tomorrow’s CPI data.
Meantime, the market could rally rabidly this morning because of the headlines that the “Euro-Area Economy Contracted 0.1% in Second Quarter”
Slice of roast Bear, anyone?
Reality: Home foreclosures up 7% in July from June.
Smart, very smart: “RBS uber-bear issues fresh alert on global stock markets.”
Banks Begin Quietly Selling Toxic Mortgages http://tinyurl.com/q2afrj
Ed Morse of LCM Commodities, is one of the few oil market pundits saying oil prices will not shoot http://bit.ly/gMPsD
Speaking of the gilded age, I recently worked a wedding at the old SF Federal Reserve building, now a high-end private event space with lots of impressive marble columns. The wedding had a theme, The Great Gatsby, the attire was surreal! Ironcially enough the hotel workers next door were on strike and there was a loud picket line drowning out the wedding procession. As we served the guests sidecars, mint julips, and bubbly, and the auroma of fine imported cigars waft through the facade of the above street open air terrace, I listened to them bemoan of their collective suffering under the union tyrants that paced beneath them.
Strange Days Indeed.
99.9ers Unite Already!
For if we do nothing, our inaction will become our consent, and our children will be told, once again, that because ‘free’ people let these things happen, they are not to be trusted.
Heeeeeee! What a suprise! OECD Puts CAYMAN ISLANDS On Tax ‘White List’ http://www.hedgeco.net/n/11261
Yep, the biggest scum has to be protected. The profits from drugs trading (South America, Poppies Afghanistan etc.) has to be kept somewhere. Casino’s are the most simple way to white wash.
Bloomberg: Sugar May Advance 80% on Supply Crunch http://is.gd/2h0NU
Stimulus transparency watchdogs keep contract details secret http://tinyurl.com/kruzzz
New post: Goldman Sachs: REIT Valuation Back To “Bubble Levels” http://tinyurl.com/pj4ko7
Most/least heavily shorted in the market http://bit.ly/otz5W
Forex reserves shrink $402 mn as major currencies turn volatile – Economic Times http://url4.eu/EWGX
Microsoft chairman Bill Gates is continuing to reduce his stock portfolio in the company http://tinyurl.com/l4hp3t
Botnet that uses Twitter as its command and control structure. Basically what it does is use the status messages to send out new links to contact, then these contain new commands or executables to download and run. It’s an infostealer operation.
The account in question is under analysis by Twitter’s security team. I spotted it because a bot uses the RSS feed to get the status updates.
http://asert.arbornetworks.com/2009/08/twitter-based-botnet-command-channel/
http://www.lewrockwell.com/celente/celente11.1.html
Something I found interesting and can really change things, if it is true,as it relates to this gold ratio:
The Chinese Gold Market
http://www.sovereignman.com/finance/the-chinese-gold-market/
I meant income ratio as it relates to the concentration of wealth in the finance sector versus what would happen if we went back to some quasi hard asset currency unit…..sorry
Notice what occured the last time the US had the nation run by bankers like now we wound up with the Great Depression. Few Liberals I know believe in a gold standard. However it is clear and I try to explain that fiat cheap money has destroyed the middle class along with the global bankers and so called Free Trade. Some are starting to catch on. America has been Wal Marted to death.