Rehypothecation 101: China style

[Jessica6]

(09-18-2012 07:23 AM)Scuffalufacus Wrote:  So what's the trigger point?

I don't know if there really is such a thing or just that when something major does happen, people go around looking for the most plausible 'cause'.

[Wingsprint]

Very good post...thanks Terp

The shell game is over......
We turned over all the shells......
and the shells were all empty.....

[Terpentin]

Thanks for the kind words all.

Yes, it seems as if the global 3-card-monte is just about over...and yes, probably some random cause will be blamed after the fact.

We shall cease the days we have left and take solace in the fact that we won´t be suprised when the day finally comes - unlike so many others.

[vikingwoman]

Very good thread - jessica6 excellent tips there to watch for -I'll will definitely be watching for Chanos.

The question about what you could be doing right now - I think that creating barter networks with your friends, neighbors and family might be a pretty good idea - also noting skills sets that your friends and neighbors have.

While on one hand it might be premature to out oneself as a prepper - its never too late to volunteer for food shelves and host parties to get to know your neighbors to help leverage a SHTF lifestyle.

My mom grew up in a small town during the worst of the depression and she tells me often about people had to come together to help each other survive.

I grew up in tornado country - and blizzard country. Americans in particular have a very instinctual way to bind together and work well - versus rioting and creating a 'wild west' sort of atmosphere. (btw - that is also kind of a myth- most of the wild west was really pioneers who had to cooperate to survive.)

[Scuffalufacus]

(09-18-2012 08:48 PM)vikingwoman Wrote:  I grew up in tornado country - and blizzard country. Americans in particular have a very instinctual way to bind together and work well - versus rioting and creating a 'wild west' sort of atmosphere. (btw - that is also kind of a myth- most of the wild west was really pioneers who had to cooperate to survive.)

I just hope they don't HAARP the world through the worst of Winter in the North......

[vikingwoman]

We can handle it where we live...it's if they haarp down south with a snowy icy winter from a couple of years ago - we lost crops to the drought in texas last year, now the drought in corn country this year...winter I can handle - its losing crops and harvests that scare me.....

(p.s. I got a boatload of food in my basement which I intend to share and barter)
p.s.s. - I don't drink or smoke but I might start collecting some stuff for barter too.

I also think that if enough crap happens communities will use their own groupon or certificate programs for work/goods exhange. This happened during the depression in this country and some communities are doing it again in pockets.

americans have a way of not only surviving but thriving in crisis...of course lately it seems like we spaz out, but if we stop spazzing we can be pretty awesome.

[Katy]

My small community is pretty connected and farmery. What i'd like to do is take advantage of the flooding patterns around us, and find a way to keep the little low areas that cut us off from the main road, mildly flooded and covered with green slime, keep the pigweed and other scruff growing high, and maybe make some biohazard signs indicating Infectious Toxins Ahead.
Nothing to see here, folks.

and try to keep the cows from mooing.

[Zero Point]

(09-18-2012 08:53 PM)Scuffalufacus Wrote:  

(09-18-2012 08:48 PM)vikingwoman Wrote:  I grew up in tornado country - and blizzard country. Americans in particular have a very instinctual way to bind together and work well - versus rioting and creating a 'wild west' sort of atmosphere. (btw - that is also kind of a myth- most of the wild west was really pioneers who had to cooperate to survive.)

I just hope they don't HAARP the world through the worst of Winter in the North......

I always thought they'd cause TEOTWAWKI in a northern hemisphere winter...

[Truth Seeker]

(09-18-2012 10:39 AM)Psychonaut Wrote:  

(09-18-2012 08:39 AM)Da Ghost Wrote:  This house of cards will fall eventually.

I always thought "recovery" would be the trigger, with growth leading to increased interest rates and collapse of the OTC interest rate derivatives markets. However, now, I can see where demand for higher bond yields could lead to the same scenario (higher interest rates) even in the absence of growth (and "over-heating"). So, I now believe the crash could come sooner rather than later.

That having been said, I am still no Nostradamus. Maybe, the question should not be when will this all go down, but what should we be doing right now.

As in live today in a way that mitigates the effect of the mathematically inevitable.

IMHO, this is the post of the year


I still can't wrap my mind around why so many claim to see this all coming, yet allow their circumstances to paralyze themselves into a constant state of observation/conversation. "The system" is rigged; NO SHIT, Why keep playing the game then?

[vikingwoman]

(09-19-2012 06:19 AM)Truth Seeker Wrote:  

(09-18-2012 10:39 AM)Psychonaut Wrote:  

(09-18-2012 08:39 AM)Da Ghost Wrote:  This house of cards will fall eventually.

I always thought "recovery" would be the trigger, with growth leading to increased interest rates and collapse of the OTC interest rate derivatives markets. However, now, I can see where demand for higher bond yields could lead to the same scenario (higher interest rates) even in the absence of growth (and "over-heating"). So, I now believe the crash could come sooner rather than later.

That having been said, I am still no Nostradamus. Maybe, the question should not be when will this all go down, but what should we be doing right now.

As in live today in a way that mitigates the effect of the mathematically inevitable.

IMHO, this is the post of the year


I still can't wrap my mind around why so many claim to see this all coming, yet allow their circumstances to paralyze themselves into a constant state of observation/conversation. "The system" is rigged; NO SHIT, Why keep playing the game then?

There are two issues. One is that certainly in the US is that if you keep the masses illiterate or ignorant of economics, then you won't have competition in better (or freer) economic ideas. Most US citizens know absolutely nothing about macro economics - nor do they even express an interest. That way they remain both passive and dependent upon the economics determined by any cabal.

On a more positive note, the emergence of the blogosphere and internet content is slowly teaching and increasing awareness of not only this "rigged system" but more and more people are choosing to break away from the "system' and living off-grid, or going cash only and taking their deposits and going purely physical assests.

We are seeing a slow increase in real estate growth and since a lot of the data doesn't measure investment real estate single family home purchases - however that said, I know that foreclosures are being snapped up by mom and pop investor purchases....also the rise of precious metals taking physical delivery is increasing. I also see more people paying off their creditors, saving more money, and opening up bank accounts with credit unions.

What we have, however, is a vacuum of an alternative economic solution - and any alternative economic solution (aka when Hitler invented his own certificates and when Lincoln minted/printed US dollars during the civil war) is quickly obliterated by war or confiscation...so offering barter exchange networks have to be very off the radar or alternative types of certificates in exchange for goods and services have to be very stealth. This is why developing face to face networks will probably be very important in the future.

When backs are totally against the wall, I think we will be seeing a lot more creative and passionate people find solutions and innovations to what is clearly not working right now around the world.

BTW - Big news this morning- on Bloomberg, Bank of Japan doing an unannounced stimulus with their currency...probably

Also - Jim Chanos will be on Bloomberg next Tuesday at 7am Central 8am Eastern talking about the overheated market and finding value stocks....Betty Liu on Bloomberg.