Financial topics

[Higgenbotham]

I don't agree with Higgie that things could fall apart in hours or days.

That scenario was conditional on:

if the shadow banking system continues to delever in a controlled manner

as outlined in the zero hedge article and I was commenting on Tyler's conclusion as to what would result from that. I do not think the shadow banking system is going to unwind in an orderly manner. Instead, it will be a very disorderly unwinding that will result in a severe but brief deflation. From there, I think things will just spin out of control.

[aedens]

Both are correct to a point and to include the syntax in the curve so to say one I have a hard time telling the Principal about is ELM
and why a pipeline is not needed as some envision for political economy discussions, and yes to date we know this and put our money in it
as a light switch position of base acount. Export Land Model (ELM) assumes exponential production declines and internal consumption resulting in zero exports at the crossing point As noted this has been considered by some for a very long time and guess what we went into? Some into PBA and some distributive services also. The FED knows this also going forward so no skin off my back for now. Basically some are spreading the base of the curve and we forwarded
on some breakdown on the dome of some positions also. This we touched on this H on your triangle note early in the month. I reviewed the chart
and we are smack in the middle of the curve so I do feel better for a second only, but moved out of UPL as noted before.
Sums it up for us bluntly what we have been poking at for some time also so I am not even going to refocus our discussions on segments
we all noted also Sep 07, 2012 http://www.zerohedge.com/news/2012-09-2 ... s-clothing

August third is when we knew and not much later we noted the mouth was closing also. The above posting chart is a
good confirmation on what we seen and it appears the move.
The government will meet its obligations by handing out brand-new printed dollars, with declining purchasing power, and the old folks will have to depend on what support they can beg from their tax-ridden children. Men live by production, but the State lives by appropriation. While the haves and the have-nots struggle over the division of existing wealth, it is the business of the State to improve itself at the expense of both; it picks up the marbles while the boys are fighting. That has been the story of men in organized society since the beginning.

http://www.jpmorgan.com/cm/BlobServer?b ... MungoBlobs

[OLD1953]

It's not so much the syntax IMHO as the emphasis. It isn't so much that disaster is possible, that's almost always true, but that it could now happen in so many different ways.

Bernake sees so many things going down at once that he's scared stiff. The EURO will go down and the zone will break up. Africa is getting hungry, and the whole continent goes to war when that happens. Europe can't even decide on whether Greece should target 18% unemployment or 25% as penance for being a bad country. (sarcasm, yes, but only a little) Greece and probably the rest of the PIIGS will leave the EURO, bailouts or no, and then what price the common market? Will the rest of Europe still accept refugees that get into Italy or will they start locking the borders? Magic eight ball says border checks are coming back! Will China start sinking fishing boats? Will Japan retaliate? Will China invade Japan to punish them for the Rape of Nanking? The Chinese have not forgotten that atrocity.

It's not that everything is a 100% chance, it's that any one of them can derail a shaky US economy. And if the economy goes off the rails again, after a decade of no income growth for the middle class, which was followed by massive job losses and free trillions for the banksters, the country will be in the mood for drastic measures. And that's what he doesn't want. Returning tax rates to the levels of the 90's will only be the start of it. And this time we can't have the same president for the duration of the mess, we have to switch in the middle, so no long term plans please, four years at the maximum and try to push anything controversial to the next term.

[aedens]

Of the top 500 companies in China, 316 are State-Owned Enterprises (SOEs). They account for 82.82 percent of the total revenue, 90.40% of the total
assets, and 81.88% of the total profit of these 500 companies. The top 10 most profitable companies are all SOEs, including three oil companies and five banks.
The victim, He Zhi Hua, refused to accept a paltry payment from the government which has forcefully evicted Changsha Village locals in order to re-appropriate their land for commercial use. When Hua began a protest by lying down on the spot through which construction vehicles had to pass, the local Vice Mayor ordered workers for the state-owned company to murder Hua by driving over his body with a huge road-flattening truck. Shocking images show Hua’s pulverized brains and his mangled body in the aftermath of the state-sponsored execution.
http://www.jamestown.org/uploads/media/cb_09_21.pdf
http://chinascope.org/main/content/view/4876/92/

http://prudentbear.com/index.php/credit ... t_id=10709

[OLD1953]

Know this for a fact, there are a great many in that oft quoted 1% who think that's the way things should be done in America. Every day for two decades I saw articles explaining how the US should be more like China, Bachmann wasn't even close to being the first one hundred. The whole business of China being communist seems to just be irrelevant, because they "get things done".

Expansion of eminent domain in the US to appropriate land to sell for pennies to corporate business did not happen at the request of a bunch of powerless hippies who wanted to grow pot in the Astrodome. It happened because the politicians got in bed with the money.

[aedens]

Know this for a fact, there are a great many in that oft quoted 1% who think that's the way things should be done in America. Every day for two decades I saw articles explaining how the US should be more like China, Bachmann wasn't even close to being the first one hundred. The whole business of China being communist seems to just be irrelevant, because they "get things done".

Expansion of eminent domain in the US to appropriate land to sell for pennies to corporate business did not happen at the request of a bunch of powerless hippies who wanted to grow pot in the Astrodome. It happened because the politicians got in bed with the money.

They all decieve now at all levels as macro parasites. The natural economy is just asserting reality
since they pushed it to be this way if they get it or not. The core it rotten and the extreme polity
cannot change it. The disconnects are real. Bulldozing zones has consequences and if this can be tempered
we shall see.
http://armstrongeconomics.com/7329-2

Micronomics http://tradewithdave.com/?p=12353 or road rollers to so called progress as in other markets.
Who will crash first would not even be a question would it. Real World Value of Reputational Capital
We called them Super Users and trust networks that make credit markets pointless since they murder you
more then not since credit is a death cult so why join.

http://generationaldynamics.com/forum/v ... 882#p15873
Like we record they do not even pretend to care as vendors are beaten to death or just
plain run over which they are. In the long run the Party is for losers backed with pointless gun powder
aimed at the class that produces. Another view was forwarded for here.
"Grey State" preview, there was a split second where I saw myself getting shot in the back of the
head by a FEMA goon on screen in 2013. I seen the screener also a week or so ago...
The way others also see it America is finished and the rest of the Planet see it as a go time
for the chips, since freedom and liberty is all but wiped off the planet. Final warning was laughed at also.

[John]

> Know this for a fact, there are a great many in that oft quoted 1%
> who think that's the way things should be done in America. Every
> day for two decades I saw articles explaining how the US should be
> more like China, Bachmann wasn't even close to being the first one
> hundred. The whole business of China being communist seems to
> just be irrelevant, because they "get things done".

That's exactly what happened in the 1930s, when Benito Mussolini and
Fascism were extremely popular among American liberals. The New Deal
was based on Fascism, and the liberals defended it by saying,
"Mussolini keeps the trains running on time."

[aedens]

> Know this for a fact, there are a great many in that oft quoted 1%
> who think that's the way things should be done in America. Every
> day for two decades I saw articles explaining how the US should be
> more like China, Bachmann wasn't even close to being the first one
> hundred. The whole business of China being communist seems to
> just be irrelevant, because they "get things done".

That's exactly what happened in the 1930s, when Benito Mussolini and
Fascism were extremely popular among American liberals. The New Deal
was based on Fascism, and the liberals defended it by saying,
"Mussolini keeps the trains running on time."

http://www.themoscowtimes.com/opinion/a ... 68525.html

Fascinating how it all ties togeather. It is like the addage I heard today at a apointment today of you cannot blame the product
even if it kills you. No solutions exists that we all can live with since they will just kill you because they can and will and do.

[gerald]

> Know this for a fact, there are a great many in that oft quoted 1%
> who think that's the way things should be done in America. Every
> day for two decades I saw articles explaining how the US should be
> more like China, Bachmann wasn't even close to being the first one
> hundred. The whole business of China being communist seems to
> just be irrelevant, because they "get things done".

That's exactly what happened in the 1930s, when Benito Mussolini and
Fascism were extremely popular among American liberals. The New Deal
was based on Fascism, and the liberals defended it by saying,
"Mussolini keeps the trains running on time."

"Mussolini keeps the trains running on time."

And that appears to be hype and illusion, just like the contemporary so called "liberals".
http://www.independent.co.uk/voices/rea ... 67688.html

[aedens]

Simply stated, an opportunity cost is the cost of a missed opportunity. Applied to a business decision, opportunity cost might refer to the profit a company could have earned from its capital, equipment, and real estate if these assets had been used in a different way.

Last friday as we noted also as did others who did something to redirect capital for this period of consolidation. We noted as the ability to address a flaw in the flow progression and the ability to the thinking supply chain operators to stop a seen error and achieve balance. To be direct we ducked.

http://www.zerohedge.com/news/2012-09-2 ... -flowchart