Thursday, March 15, 2012
Submitted by Tyler Durden:
America is just going through the motions because we have no other choice--or so we believe.
I have long thought that America Is Just Going Through the Motions--of caring about the deficit, of financial "reform," and everything else:
Let's be honest, shall we? There never was any fire for real reform of the financial sector. It was all rote, a foul, stupid play-act, a passionless pantomime of "caring" and fake-"progressiveness" displayed for propaganda purposes.
I now think we're just going through the motions because we have no other choice than to "extend and pretend" the Status Quo. Choice is of course a matter of perception, a situation where perception defines what is "possible" and what is "impossible."
Interestingly enough, the "possible" is what we think we can manage, while the "impossible" is what happens to us whether we thought it possible or not. ...Could we choose another future other than collapse? At this point, the answer is no, because we have no other choice.
Egypt calls Israel its number one enemy, saying it will “revise all its relations and agreements” with Tel Aviv. In a protest against Israeli attacks on Gaza, Egyptian MPs have voted to expel Israel's Ambassador in Cairo, and to halt gas exports.
"Egypt will never be the friend, partner or ally of the Zionist entity [Israel] which we consider as the first enemy of Egypt and the Arab nation," reads the text of a report prepared by the Arab Affairs Committee of the People's Assembly, the lower house of Egyptian parliament.
Initially intended to be a day of rage (by the Imperialists) it turned out to work in the Governments favour. We also discuss Syria's armaments. And the Imperialists intentions. Source
The Baath Party was founded by a Christian who wanted to see a Pan Arab nationalism.
The so-called war on terror is just one of the reasons the West says it gets involved in conflicts abroad - the other is bringing democracy. But as the US and its allies criticize other countries for their lack of freedom and human rights, they're failing to notice matters closer to home, as Marina Portnaya explains. Source
Well, you're back Mr Van Rompuy, another two and half years. No doubt a reward for your great success. Indeed, listening to you I thought perhaps I had got it all wrong.
You talked about how positive the last Council meeting had been - that we've reached the turning point, that everything is going swimmingly. I was beginning to believe it.
But then I realised you did not mention the D word- default. No, that cannot be talked about. We pretend there has not been a default. Well, we know in fact in Greece last week there was a very major credit event.
Submitted by Tyler Durden: As we have repeatedly said in the past, the quarterly Flow of Funds (or Z.1) statement is most interesting not for the already public household net worth and leverage data which serves to make pretty charts and largely irrelevant articles, but due to its insight into the stock and flow of both the traditional financial system but far more importantly - into shadow banking. And this is where things get hairy. Because while equities may have returned to 2008 valuations, the credit shortfall across combined US liabilities - traditional and shadow - still has a $3.6 trillion hole to plug to get to the level from March 2008 (see first chart). It is this hole that is giving equities, which have already surpassed 2008 levels, nightmares. Because while the Fed is pumping traditional commercial banks balance sheets via reserve expansion (read: fungible money that manifests itself most directly in $5 gas at the pump) resulting in a $2.3 trillion rise in traditional liabilities from Q3 2008 through Q4 2011, what it is not accounting for is the now 15 consecutive quarters of shadow banking system contraction, which peaked at $21 trillion in Q1 2008, and in Q4 2011 declined to $15.1 trillion... and dropping. It is this differential that will be the source of the needed "Outside" money, discussed yesterday, and that is only to get equity valuations to a fair level! But considering the Fed's propensity to print at any downtick, this is very much a given, much to the horror of Dick Fisher. Any additional increase in stock prices will require not only the already priced in $3.6 trillion, but far more direct Outside money injections.