Go find a chart of lending in China. While you’re at it, go find a chart of U.S. treasury consumption by our commercial banks.
Did you know that Japan’s debt is 200% of GDP? Did you know that 90% of it is funded internally? Think about this for a second, for we are about to go down the road of Japan, via our retarded monetary policy. If you are a bank, why would you ever lend money to Joey Bag O’Creditcards, when you can buy Treasuries, virtually risk free, and grab a big fat spread?
Well, that’s exactly what is transpiring today, as evidenced by the data.
All of you fuckers are worried about financing the deficit. I’ve been telling you all along: the American deficit will be funded by the American people.
Get in the vortex.
As an aside, Germany is starting to sound like they’ve had enough of being the EU’s piggybank. Coupled with Obama’s plead for Germany to spend more, this years g20 meeting should be interesting.
Scotty Bleier has been telling you for months now: we are Japan. Indeud we are. What part of vortex don’t you get?
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I have that exact car.
Hmm, are the Japanese T-bill spreads big and fat?
Fat enough to cause people to throw money into Japanese debt.
Smartest trader I know. $2bn under management and half is his. His biggest position?
Short Japanese Long bonds.
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That car is a classic, as is the former broker sitting in it.
unsustainable and unforgivable!
http://www.youtube.com/watch?v=0dJu1Jj7VTw
From inside the funnel I don’t get how generally complacent we gringos are with government incompetence. If I had a bunch of pay pissoirs out in this vibrating economy I sure as hell would not hire a CEO from the current White House team. Anyone who can crush the Harvard endowment sure aint a proxy for competence in the big chair. We are well and truly vuvuzeled right up the vortex. Amen Fly, you got it nailed.
…hmmm…Debt Summit G-20++
Topics: How do we fuckover China without starting WW3?
I’m smothered in FAZ, TZA, and GENC…. it’s like gravy on Thanksgiving turkey and mashed taters… you know you’re going to pay for it but you just can’t stop eating
We may try to be Japan, but Japan did their fiscal measures during a global credit and economic expansion. Today is a lot different indued.
Plus while we may fund our treasuries we as a nation can not absorb all issuance of treasuries, (like Japan,) unless baby boomers pull their money out of the stock market completely.
I think there is around $2trillion in cash hanging around in money mkts.
As for the baby boomers pulling their money out of the stock market, you are in luck. They will be required by IRA governance laws to do just that.
EXACTLY.
401k’s could be funneled into Treasuries.
Yeah, because returns on Treasuries are so awesome right now… who wouldn’t make that trade?
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SIG
Fly,
It looks like the PPT will hit oversold levels sometime soon. Just yesterday, you revealed that you’re now 100% short in your personal account. Given the ever-more evident pressures to the downside for the economy and the markets, will you get out of TZA and or VXX, short-term, if the PPT indicates oversold? Or just hang on this time, and ride out any short-term rallies?
I will put cash to work on some longs.
Gone With the Wind 2: The rise of dollar carry trade.
What’s up with MS?
DOW 9K.
long BGU (SPX triple long) in a 1/8th position at 45.37.. Not betting big today on long side until we get a dollar bounce, to fade. I think treasuries and yen are getting a little too overheated,near term. 3/8ths total long in portfolio.
going to 100% cash….nice call fly..out for the rest of the day
You will make it back; never bet against the man in the time machine.
Jeff Skillings release from prison will coincide with the untimely end of the world.
And Conrad Black is now saddling up all four horses of the apocalypse…
Sorry – “Dark Lord” Black.
My FAS has not been filled yet @21. Waiting….
No idea what you’re trying to say.
IMHO, the summing up of deflation is way too simple….so many moving parts shortterm. Serious lack of demand is clear, been clear for almost all of 2009, stupid bubble. But, I am really seeing a huge new theme in China forming…a pattern that I am watching. BTW, FLY if this continues to play out……you could see why I Hate STUPID analyst so much..they are paid big money to warn and help people but instead they upgrade FSLR,etc last week….it’s so much like fingernails on a chalk board for me.