Common Sense And The Rapidly-Incoming Tide
The Market Ticker ® - Commentary on The Capital Markets
Posted 2011-11-19 09:47
by Karl Denninger
in Editorial
Ignore this thread
Common Sense And The Rapidly-Incoming Tide
 

The tide is turning......

MEMPHIS, Tenn. -- Occupy Memphis member Mallory Pope had just finished telling a group of about 75 tea party followers Thursday night that politicians should not allow themselves to be influenced by lobbyists and unions when she received an unexpected invitation.

"It sounds to me that y'all ought to be joining us," said Jerry Rains, a 64-year-old computer programmer and tea party member. "You have a lot of the same goals we have, which is to take our country back."

Pope and fellow Occupy Memphis protester Tristan Tran had a lively, sometimes strained and confrontational, but mostly civil discussion with members of the Mid-South Tea Party at a municipal meeting hall outside Memphis.

The factions saw eye-to-eye on some issues and clashed on others. And, while the young speakers didn't change many minds, they did earn praise from the tea party members for their passion, honesty and courage.

THIS.

You want change?  You want to see actual change?

Then you have to stop doing things that don't work -- by your own experience -- and embrace those that do work, whether you agree with every single point on the table or not.

I will never find "consensus" with my views if I insist that every point of what I would use as a platform were I to run for office be adhered to in order to participate.  Were that to be my standard there is only one way I'd find common ground, and that is if I was to be crowned a dictator!

That's not America folks, and God willing, it never will be.

Face it folks: The Tea Party was maligned as a bunch of redneck racist cross-burning KKK members by the hard-left political establishment.  I called that sort of crap what it is at the time: Bigotry and over the line.

So what is when the hard-right maligns Occupy as a bunch of dope-smoking communists and marxists?  The exact same thing: Bigotry and far over the line.

Are there "dope-smoking hippies" in Occupy?  I'm sure there are.  I'm also sure there are redneck racists within the Tea Party.  But the presence of those who would try to exploit something for their own puerile purpose does not make the movement, nor does it constitute endorsement by that movement.

Here's reality folks: The Tea Party, if we are talking about what founded the Tea Party -- the Santelli Scream if you will, of if you prefer my original Tea Bag Ticker, which is this singular message, is where we need to find that common ground and focus:

So long as we have an inauguration drawing this sort of crowd and not a protest about our government blowing $700 billion of our dollars so that The Pigmen of Wall Street can continue to rob our nation blind, then saddle us with the bill when their bets go bad, we will see no solution.

I cannot take credit for the idea floated on the forum, but I do like it.

It is time for We The People to send a strong message to Washington DC - no more.  No more loading our children and grandchildren with debt.  No more bailing out speculators and bankers who made bets they knew were unsafe at the time.  No more bailing out people who came to Congress to demand the removal of leverage limits, got what they asked for, then blew themselves up with the very leverage they demanded to be able to use.

No more.

Therefore, on February 1st, which is more than enough time for Barack Obama to be seated in his chair in the West Wing, I am recommending an act of peaceful, lawful and yet unmistakable protest.

That is, to mail President Obama one teabag.  Nothing dangerous, nothing illegal - just one teabag.

Send one to your Congressman and one to each Senator.

Later, when the weather is a bit warmer and fountains are running water (rather than frozen!) this sort of protest can be repeated with LOOSE tea in select cities.

For the Tea Party, take the "guns, gays and God" thing and shelve it folks.

From the left, take the "I want my mathematically-impossible freebie" and shelve it folks.

Here's the punch line, in case you missed it in the Huffington Post article:

"The Occupy movement has remained adamant about not drafting a list of demands because terrorists make demands, and we're not terrorists," said Pope, a graphic design student. "We shouldn't have to demand a democratic process."

Remember the shopworn criticism from The Right, and from the mainstream media?  "There's no list of demands."  Well it's true that there's no list of demands, because there shouldn't have to be demands.  Demands are made by terrorists; the rule of law is followed in a representative republic, and does not need to be stated as a demand as it is implied in any lawful, rational, rights-based society and government.

Wake up and smell the coffee damnit.  The Attorney General of Nevada just issued a 600+ count indictment against criminal behavior in bank-sponsored foreclosure actions.  Hundreds of counts of felony misconduct are alleged.  That leaves just 99,400 more that have yet to be charged nationally, does it not?

The tide is turning.

We need a banking system but we do not need banks that run roughshod over the people with criminal behavior that no legitimate society and government should ever tolerate.

The tide is turning.

Not a damn thing has changed in this regard since 2007; the total notional value of derivatives has increased since that time and what's worse is that they're using your bank deposits as collateral to back them!  They have refused to put them on an exchange and back every dollar of underwater position with one dollar of capital from an actual shareholder or bondholder because if they were forced to do this they would not have the money to post the margin and they know it, which means that the "contracts" are no contract at all since it is impossible for them to perform.

This is the outright scheme and scam that is being run against you.  Bernanke is coddling these jackasses because he, along with Congress, are locked in a deadly embrace; they both know the above is true and they also both know that the economy does not have actual demand sufficient to absorb the supply -- that is, a good part of the current so-called "GDP" is false just as it has been since 1980.

This must stop!

It is not a matter of politics.  It is a matter of arithmetic.

The tide is turning and we are about to be buried under a 500' wall of water.

Europe is on the verge of economic collapse as a direct consequence of their refusal to face reality for the same 30 years.  We are next in line if we do not both ringfence our financial system and cut the crap in this country.

There is no way around the economic contraction that we must accept in order to restore balance to our economy.  There no way around the deflation of asset prices and the general economy.  There is no way to pay that which has been promised to many -- the promises were intentionally fraudulent and the government agencies, representatives, senators, governors and presidents who made them knew it at the time.

This does not mean we cannot help people.  It does not mean we cannot fix our economic system.  It does not mean we cannot provide the assistance we are able and reform our economic, tax, medical, immigration and government structures to return competitiveness to American manufacturing and ultimately drive economic prosperity.  We can do all of those things, but not in the form and fashion we've claimed to do them up until this point.

But we cannot continue with Ponzi Finance and we must unite as a people around the singular goal of putting an immediate stop to it and jailing every one of the bastards that has promoted and continued these policies to the fullest reach and extent of the law.

The tide is turning and the available time to both lay in the sandbags and get to higher ground is running out.

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User Info Common Sense And The Rapidly-Incoming Tide in forum [Market-Ticker]
Neoplunger
Posts: 221
Incept: 2009-02-08
Green
N.E. PA
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Yes Karl the tide is turning. A change in the social mood at Grand Super-cycle Degree. During this 12/13 year topping process the hope is to return to the old trend. Once the herd realizes the old trend will not return a tidal wave of deflation will sweep across the globe. No one is prepared for the decades of depression that lie ahead. God bless you KD for what you do.

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If bull markets climb a Wall of Worry, I would add that bear markets slide down a Slope of Hope.
Robert R. Prechter

We are about to discover what happens when widespread panglossian delusions run head-on into mathematical reality. Eleua
Captbill
Posts: 842
Incept: 2008-07-22
Gold A True American Patriot!
Arizona's West Shore
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Quote:
The tide is turning and we are about to be buried under a 500' wall of water.


For some reason this line just stuck out...

Great Ticker!

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Incredible. There's Smith and he's standing there and he's got the iceberg warning in his ****ing hand, excuse me, his hand, and he's ordering more speed. Lewis Bodine, RMS Titanic
Halfbrite
Posts: 2459
Incept: 2008-10-13
Green
Arizona via California
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Quote:
But we cannot continue with Ponzi Finance and we must unite as a people around the singular goal of putting an immediate stop to it and jailing every one of the bastards that has promoted and continued these policies to the fullest reach and extent of the law.


Sooo, if this is the only way forward (I agree that it is), are our leaders and the puppet politicians who serve them going to voluntarily lock themselves up?

Of course not.

So what's the alternative?

Start calling for a national strike - an unending, complete work stoppage in Amerika - it's the only way to avoid violence.

Yet that won't work either, since .gov employees and many union employees are happy and oblivious. They will not strike until their benefits get cut, then TS WILL HTF, because they are organized and accustomed to the free lunch the puppet masters have provided since 1980.

They will be the groups to turn to and promote violence. They won't do it themselves, they will just stand back and watch the chaotic free for all that results when police/fire are absent, and the population is enraged.

The FSA will be the ones to protest. (see OWS)

The unions will be the ones to strike. (not the pvt sector)

We're doomed. Sorry to be a pessimist, but it is what it is.






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"That which cannot continue, will not continue. Brace for impact!"

Rutben
Posts: 1414
Incept: 2007-07-27
A True American Patriot!
Phoenix, AZ
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Sam Cooke - A Change is Gonna Come

http://www.youtube.com/watch?v=NaNzxniXx....
Kwerk
Posts: 908
Incept: 2009-03-02


Banned
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I don't see how there will be violence other than a few isolated psychos. Even when everything takes a dump we'll still have a higher quality of life than the bulk of the world. Ever seen how most people live in Mexico, even during the boom?

Are people really going to take up arms for their mcmansions and F150s? Or the their perceived future entitlement to it?

They're going to be living in an apartment and riding the bus to work just like the rest of the world boo hoo... because you never really were middle class. Those people benefited from the imaginary wealth just like anyone else. Not worth killing anyone over when it comes down to it.

I remember when the Egypt thing was going down seeing an interview of one of the guys who said all he wanted was an apartment of his own to raise a family. He was living in a single room with 3 generations. He didn't want a brand new F-150 and mcmansion in the suburbs and a cushy gov job with full benefits, he basically wanted what someone in the USA ghetto projects has! That's the difference, and why this whole thing isn't such a big deal IMO.

Tallystick
Posts: 2228
Incept: 2009-09-20
Green
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From a quick google search, it doesn't appear to be illegal to discriminate against certain occupations. Business owners could refuse to provide goods and services to bankers and politicians.


Standard of living as measured by GDP/capita doesn't reflect happiness. I have a few issues with the metrics used in this index, but it does have illustrative value. Have a look at the following graphic:

Map showing countries shaded by their position in the Happy Planet Index (2006). The highest-ranked countries are bright green; the lowest are brown

inline

Oldpool
Posts: 873
Incept: 2010-06-23
Silver
LI NY
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Uh my deposits are being used as collateral? WTF

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Liberty, Comrade!
Blackswan
Posts: 5562
Incept: 2007-11-06
Gold
Just outside of Philly
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Kwerk you may be right.
Katrina was non violent. Cops did their job. We are not japan. _tsunami...Many scumbags that will take your **** given a chance. Imo

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“It’s checkmate. Everywhere it’s checkmate.”
Hugh Hendry
Mangoelvis
Posts: 1726
Incept: 2009-07-11
Silver
Las Vegas, NV
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The difficult part is convincing those at the front of the line to take less soup than they were promised so there will be some soup left for those at the back of the line.

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Evolutionarily speaking, sloths must taste terrible.
Jal
Posts: 512
Incept: 2009-03-25

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Re.: timing and volatility

Its like a roll of toilet paper ...
The closer it gets to the end the faster it goes.
jal
Crzymorse
Posts: 1186
Incept: 2010-06-25

Maryland
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This weeks examples of Ponzi Finance and crony capitalism.

13.9B in borrowed future taxpayer money to Fannie and Freddie this Q. Close to 5B in derivatives losses, I wonder who are the counter parties. (Our off the balance sheet Raptor and Jedi). Remember when voting, Gingrich was a bought and paid for ***** for the GSEs to pass around.

The war in Iraq cost more this year then any other year of the war and we are leaving Iraq at the end of the year... Go figure that one out.

The debt super committee, the pretend olive branch given to the tea party is now doused in oil and being politically prepared for the funeral pyre by the Boehners (Judas) of the world. I call it the Republician betrayal and public butt****ing of their constituents. How ironic its the republicians that tea bagged the tea party and not the dems. I also think its the beginning of the end of the Republician party.

The post office - is becoming a $5-6B a year subsidy to the department, supermarket and box
stores as well as driving up property taxes for recycling all the ****ty junk mail. A two way screwing.

Obama is officially the elected Stepford Wife of the financial elite not a populist.

Have a good weekend.

Donnetlamb
Posts: 3
Incept: 2010-01-19
Green
Pennsylvania
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Karl:

I have been following your ticker since the summer of 2008. You are brilliant and have never wavered from your core convictions. You are a voice of reason in the midst of endless insanity.

I only want to add a few thoughts. You have touched on these things many times but I think they get lost in the passion to see the “banksters” and the “political ponzi pipers” come to justice.

First is – the “MAJOR WHY” the “political ponzi pipers” keep doing, as you say, “The extend and pretend.” We need to remind ourselves that insolvency in the big banks and the Governments of the world is a CONTROLLING FEAR in these politicians. You yourself have said that if someone would force the debt out into the open unemployment would sky rocket to 40% or higher and there would be a run on the banks and almost a 100% chance of civil unrest that would spiral out of control. This is why they are paralyzed by PANIC. So more accurately the politicians should be called PANIC HERDERS. They are only trying to herd the panic – they cannot stop it. This is huge in understanding why they don’t listen to you or the voice of reason to stop the games. They are only hoping to avoid something they can’t avoid.

Second – is the GENERAL PUBLIC who fed off of the free money. I believe that one of the reasons that people are so apathetic on the streets is that they suffer from DEBT GUILT themselves. Sure the banksters are stealing from them and there is foreclosure-gate. But many people realize they WILLINGLY TOOK THE DRUGS themselves. They willingly got high off of the free money. I know you know all of this and have said this before. BUT IT IS ONE OF THE MAIN REASONS FOR THE APATHY IN AMERICA – SHE KNOWS COLLECTIVELY SHE IS GUILTY. It was the banksters – the political ponzi pipers and the general irresponsibility of the whole culture of consumerism at any price that got us in this pickle. None of those three entities want to share the blame.

Keep up the good work – I pray these three entities will “awaken” before it is too late.

Don
Exsanguine
Posts: 24
Incept: 2011-10-17
Green
Fargo
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It is refreshing to hear that the core, and sane, group of OWS'rs are realizing they share the same values, mostly, as the tea partiers.

And thank you KD for toning down your incessant ridicule of the "tea party" it is easier to take you seriously this way.

Sadly, i share no optimism in this matter.
We are fooked.
the country is gonna crumble
it will be up to the sane, logical, ethical and moral among us to rebuild it.

Truthseeker
Posts: 8474
Incept: 2007-10-07
Silver A True American Patriot!
NorCal
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Another in a long line of great tickers on the subject. Thanks, Karl.

While I am pessimistic about the short term implications of our national stupor, I find no honor in throwing up hands and declaring it hopeless. Every day, each of us has the continuing opportunity to communicate our concerns and desires, to prepare for life's various possible outcomes, and to make personal decisions that, collectively, squeeze money OUT of the unholy alliance between WS and DC.

Many folks, both on this board and in the towns and neighborhoods I visit, are coming to a similar conclusion. We each can exert influence through the choices we make right now.

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"...But people better realize that the worst-case scenario could actually happen.9/11 happened. This can happen. An economic 9/11, the likes of which we've never seen." Gerald Celente
Jbsilvey
Posts: 14
Incept: 2009-12-11

Phoenix, AZ
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I’m a long time reader and first time poster.

For years, my morning ritual was to check-in on The Market Ticker’s macro view of the world, but recently, not so much. In a nut-shell, I have grown weary of your efforts to legitimize the action of the OWC group, based on the validity of the cause. The cliché’ the ends justify the means, is really a liberal tenant—not valid for conservatives.

Conservatives believe that person responsibility comes first, even before their rights. So to ask a conservative to give support/power to a group that obviously doesn’t share their core values, is asking them to deny their core believe system—and all for some banking laws violations?

While the media tried to define the Tea-Party group by the exception, groups are defined by their members and not the exceptions. For example, showcasing a couple of non-racist KKK members would not define the KKK as non-racist—and the same goes for the cherry picking of OWC group. To contrast, Tea-Party group is exponentially larger than the OWC groups, and no Tea-Party members have been arrested, done graffiti or vandalism, defecating in public or on police cars, been to classes to learn how to get the most out of being arrested, started fires in public demonstrations, broken glass, raped, robberies, drugs, assaults on police officers, etc?—NO; but members of the OWC have done all of these and more. If the OWC group wants support from conservatives, they would collectively need to act responsibility. Why would anyone give support/power to the irresponsible?

The bottom line is that regardless of the validity of the cause, or the showcasing of the exceptions, a true conservative would never back group that conducts themselves as the OWC does.
Drb
Posts: 195
Incept: 2011-01-02

TX
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Jbsilvey:

Does this count as a tea-party member arrest:

http://heraldbulletin.com/crime/x1750602....

Crzymorse
Posts: 1186
Incept: 2010-06-25

Maryland
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Jbsilvey,

I heard the same rant on three different conservative outlets in the last three weeks.... Wow, no conservative tea partiers ever urinated or took a dump on public land when deer hunting.... Thanks for the divide and conquer hackneyed talking points..

Brian_cali
Posts: 182
Incept: 2011-10-22
Green
San Francisco
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Hey JB -- go live your Fox News Fantasy. Go vote Republican and insist that you're all safe and secure from the fraud and that the OWS people are all communists. When you lose EVERYTHING, I don't want to hear a PEEP out of your deluded partisan mouth.

For everyone else, the big corrupt financial institutions are finally starting to spend serious coin on political efforts to disrupt OWS.

Here's a story about a leaked memo from a lobbying firm hired by the banking cartel to stop the protests:

http://openchannel.msnbc.msn.com/_news/2....
Genesis
Posts: 130678
Incept: 2007-06-26
Admin A True American Patriot!
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Quote:
To contrast, Tea-Party group is exponentially larger than the OWC groups, and no Tea-Party members have been arrested,

You sure about that?
Herald Bulletin wrote..
ANDERSON, Ind. — A founder of the American Tea Party of Madison County who unsuccessfully ran for Monroe Township Trustee last month has been charged with dealing drugs from her Alexandria home.

Nova M. Guffey, 47, of the 600 block of Broadway Street, was arrested Wednesday night after an operation that involved agents from the Madison County Drug Task Force and the Madison County Sheriff’s Department’s Special Weapons and Tactics team, Sheriff Ron Richardson said Thursday.

Guffey was charged with a Class B felony count of dealing schedule 3 controlled substances and a count of maintaining a common nuisance, a Class D felony. She was released from the Madison County Jail after posting a $20,000 surety bond.

http://heraldbulletin.com/crime/x1750602....

Now about the brush you intend to try to use on OWS' fringe elements......

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Kwerk
Posts: 908
Incept: 2009-03-02


Banned
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Quote:
Kwerk you may be right.
Katrina was non violent. Cops did their job. We are not japan. _tsunami...Many scumbags that will take your **** given a chance. Imo


I was talking about political violence. Some people seem to think there will be a civil war or assisnations or something.
Soar07
Posts: 353
Incept: 2009-05-04
Green
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How about an update to The Ten Things Ticker?

My biggest question on disconnecting from IRA's, Trading Accounts, etc, is where do I go that is safe?

I don't have faith in any financial institution any more, I don't have much debt to pay down, and I not going to pay off my house in time, so where to go? And I am not going to go out and buy 50000 rounds of ammo or live in a bunker.

Where do we go to escape? Nowhere is my feeling.

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Time to put the USA first! Stop Globalization, Illegal Immigration, Outsourcing. Buy American. Enforce the rule of law. Drop kick political correctness!
20yr2debtfreeusa
Posts: 11
Incept: 2011-04-28

Rockville MD
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As some have pointed out, the country is ruled by the bankers. If in fact what we use everyday as money is rented from them.

I fear that unless there is a idea that is SO BIG, together with proofs and a roadmap....that will put up a wall against the tsunami...we will only waste time in prosecuting these guys who will stop at nothing (picture the country of Columbia).

Maybe in the meantime it would be wise to open a 100% reserve bank backed by dollar coins in the vault? While of course spending everyday fighting back.
Kwerk
Posts: 908
Incept: 2009-03-02


Banned
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Aren't most tea-party people for the legalization of marijuana anyway?
Etz
Posts: 13888
Incept: 2007-06-26
Silver
LA
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There will be no progress as long as people continue to buy the partisan bull****.
Quote:
With the emergence of cross-border wage arbitrage, and the globalization of finance, the US financial sector gained control of the US economy, transforming finance from a sector that served the industrial economy to a dominant position of a profit center, replaced industrial capitalism in which full employment is a necessary objective, with finance capitalism in which structural unemployment is a necessary objective to prevent inflation. Money can actually be made by management decision to lay off employees.

Increasingly, globalized market capitalism, with free trade and financial innovation as its partners in crime, is being exposed by unfolding events as the defective system that has produced unsustainable financial imbalances that resulted in recurring global crises of excessive debt and deficient demand. Monetarism as practiced by contemporary central banking has provided the theoretical anchor for growing dependence on debt as the necessary stimulant and facilitator of financial expansion, confusing unsustainable market expansion fueled by debt as economic growth that would produce sustainable prosperity.

Deregulated market capitalism operating with loose accommodating central bank monetary policies has produced extreme disparity of income and wealth in the name of necessary capital formation both among competitive trading nations and among competitive market participants within nations that have adopted market economy as the only path to economic growth. The flawed theories of monetarism rely on persistent structural unemployment (above 6%) as the prime effective way to maintain price stability unnatural and elusive in business cycles.

http://henryckliu.com/page252.html



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Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora.

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