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Ponzi Units and Economic Maladjustments up the Ying Yang

The twin evils of just-in-time inventory and globalism coupled with massive money printing have combined to create too much money and not enough stuff. Like those taking Covid vaccines, it leads to economic clotting and neurological illness. As a result, global supply chains are in a complete and utter state of chaos. Here is what container rates look like — a shitstorm.

Meanwhile, ships are backed up and waiting at ports. Top UPS exec warns, “Order your Christmas presents now.”

With 12 million people moving off the unemployment dole and no more stymies in sight, August retail sales were down 1.6%.

“We need lower consumer demand to give supply chains time to catch up … recover efficiency … and break this vicious circle,” said CEO of Maersk’s APM Terminals, one of the largest container port operators.

All the offshoring is now taking down industries, such as domestic printing. These zombie companies are everywhere, but the lack of financial market-price discovery keeps them in limbo until they finally collapse, like big Chinese property developer Evergrande’s $300-billion Ponzi scheme. See Forbes’ “What Would A Restructuring Of Evergrande Look Like?”

Last night in a sheer nothing to see here, move along coinkydink there was a fire at the interconnector, which links the British and French power grids. UK’s National Grid warned that the disruption is expected to last until March, raising more fears over tight supplies in the coming months.

The second chart and the red line shows the crippling impact of high inflation on consumers. Consumers don’t expect their earnings to keep up.

Jeff Gundlach says this inflation is understated.

Expensive food costs globally are a huge issue. This opens the way for civil disorder and revolution. The New Underworld Order must be licking their lizard lips.

There is so much inflationary money and debt sloshing around versus legitimate investment opportunity that the plebs have turned to a Ponzi scam called NFTs, or non-fungible tokens. NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.

It goes without saying that these bear a strong resemblance to the Dutch Tulip Bulb mania of the 17th century.

After Christie’s auction house got involved in this scam and sold “NFT artwork” — a collage of images by digital artist Beeple for a whopping $69.3 million — NFTs have suddenly captured the attention of the Boyz, Crime Syndicate and punters.

Crazy Pills GIFs | Tenor

Typical of this inexplicable mania:

Dementia Joe thinks he is on the case.

Old timer observers like Fred Hickey (and me — it’s why I don’t publicly involve myself in this sector anymore) have egg on their faces dealing with this hysteria, but you know they will ultimately be more than right.

Money Printing GIFs - Get the best GIF on GIPHY

34 Comments on Ponzi Units and Economic Maladjustments up the Ying Yang

  1. I thought from the beginning that coronavirus was a distraction to divert attention away from the need for massive bailouts of the global financial system. The usual suspects opportunistically used coronavirus to seize upon yet another chance for grifting and political power.

  2. Russ, I think you should write more about economic, finance and markets. That’s where your best expertise lies. We are in the midst of a historic bubble. Your insights can prove invaluable to many.

      • Eh…you are just being modest. Heck, you are good at all of it, and BTW you could have sold out and been on CNBC ages ago, but Louis Rukeyser would have made you work for it (inside joke folks).

        Just know you are good at all of it, otherwise smart folks like me (kidding) would never stop in; I mean honestly, do you know how much competition you have in the “truth market”? = )


        P.S. Some day we need to talk about Iron Mountain and its repository; I am not sure why this one hit me as I was typing this response, but it just did…there is gaming afoot with the Iron Mountain gov. site in PA, and the Iron Mountain Corporation. Another idea, for another time. I am to trying to ruin a moment.

    • WW:
      The macro trends all point towards catastrophic inflation, however could there actually be deflation coming?

      I’m not an inventor, I don’t have much finance experience so I wanted to throw this out there and see what you think:

      Most all the money in the economy is locked up in assets, there is very little velocity. What this could mean is that in the event of a crash (like a cyberattack) the monetary value of everything will crater. But people will still be on the hook for their debts. Explained another way if the value of all the overpriced assets is “reset” and the debt is not won’t this be killer deflation?

      • Ryan,

        Sure, it could happen. Your analysis and idea is very sound.

        It just seems that in order for us to reach that part of an economic cycle, there would need to be other measures in play such as massive reserves of particular commodities. Currently those reserves are not in place and (as the thread mentions) inventories are having a hard time meeting destinations (hence the tankers), which could result in a slowing of production for a host of reasons (one could be spoilage, but there are others).

        So although you are on the right track, I would humbly suggest that you are early to the “party”. Down the road, we absolutely could see what you are speaking of.

        Simple Citizen

          • Yes, you can count on that (the yo-yo) and are quite “on point”…the real issue becomes the timing, which is very hard to know fully. There are signs, but they can be elusive as to a change in economic patterns.

            Ironically, we may have more access to financial data than ever before, but the economic “noise” is also greater, which can be really confusing at times.

            Oh yeah, for a guy who wrote this:

            “I don’t have much finance experience so I wanted to throw this out there and see what you think”

            I can tell you straight up that you are way ahead of the curve on knowledge or instinct, or both.

            You may feel unsure that you get it, but take from a guy who works in that world, you have an excellent depth of understanding already. Keep looking at it all if for no other reason than so that you can use those abilities to make wise decisions for you and yours.

            All my best,

  3. Just stopping by quickly. Funny, I recently re-watched this one:

    Now RW and BGNZ may wish to correct me here, and that is fine, as they are my seniors; however, I think it is India’s time to run a similar operation.

    Also the Chinese did not give this practice up, they simply moved it to places like Canada. Hey if the carnival works, but the natives might get restless, then simply move the caravan to a new demographic.


      • Sorry for the late response, I am in and out today.

        You should be able to purchase it on ITunes (on the cheap since it is 2018; then I burn a DVD for a personal record / use only — not advocating piracy on WW).

        It basically gives an entire lesson on shorting the myth that is China, which is accurate and hilarious, until you meet the folks who were conned by third tier bank shenanigans and unscrupulous lawyers.

        In my comment, I am ahead on India assuming that the economic hitmen will run the same play in the U.S. some years down the line (since they are not all that creative), and with regard to China, one might opine that the same system for shorts would work; however, one would want to start looking at Canadian exchanges and reverse acquisitions up there.

        The principal still holds and the Canadian system of shelf companies is nearly identical. Having been up there, I would suggest that Montreal and Quebec would catch the issue quickly and squash it; however, I have my doubts on Toronto.

        Either way, I do feel for the people who were hurt. Further, I would opine that the short is the only way to send China a message without a full scale, REAL, war.

        Excellent thread…please be well.


        P.S. If you cannot find it, let me know and we will work something out. I am not near a computer with I Tunes on it at the moment.

      • Russ you can find it on some plattforms like bitchute or odysee, use tools like jdownloader2 to get the file.

        Dont want to link channels here which i dont know.

      • RW,

        Just checked…its on I Tunes, but I was disappointed by the price considering the age. Perhaps Kati has a good alternative; I am not sure since I have never used those sites / tools.


        • Regarding Mainland Chinese, it should be understood and appreciated that “Saving Face” is a higher virtue than Honesty. Put another way, Lying to “Save Face” for the Chinese is akin to the Western “White Lie”

          • As is eating a near live, tortured, dog for the endorphins, from a wet market. for the attainment of being “mucho macho”. All this from a society that gave up on historic archery and never learned ground fighting.

            But yes, I agree with you on the whole “save face aspect”. Actually, without the New Deal that nation would still be in the dark ages.

            Always good to see you here. Will get to the one bellow (which I really liked, although I liked this one too) in a little while; being called for dinner right now.

            Please be well my friend.


      • And to think how timely this post and the film have just become in light of Evergrande. Even the corporations name smacks of “too big to fail”. Oh well, we shall see how this one goes.


    • Ed,

      Kudos to you my friend, that Twitter account looks excellent, and I am glad it is working out for you. I will come back to the post on Mr. Titus.


  4. Calling RW, BGNZ and Skoolafish…calling RW, BGNZ and Skoolafish,

    Now I am not trying to have a “love fest” here and I do not even know how to use cute emoticons to add to my posts — I am strictly a text motherf*cker, but I was looking for that doc. for RW (see above) and came across this one:

    It does and does not have to do with this thread; however, it has a whole lot to do with Winter Watch! So of course I bought it. Now, I did not have a chance to get far beyond the trailer; however, I do know a bit about the whole topic and would then direct you gentlemen to this text (which I own — I really like Ms. Shannon’s work, someday I may be able to tell you all about “The Spy Next Door” and an intersection that I had with Mr. Hanssen):

    RW, this is a “no-brainer” post for you as I think you will like both of these resources.

    BGNZ and Skoolafish, this all takes place in your hemisphere and being the smart men I know you to be, I thought you would both be fascinated by the film and the text.

    Should none of you get either, no big deal. I may just let you know what I find about out in the film As for the text, just read the description and let me know if I can answer any questions; I will be happy to do so.

    Skoolafish may have ways and means to get free access to one or both, I do not know; however, Julius always seems to find a means to resources that are often free to all.

    All my best,

  5. When it comes to Aus and NZ keep in mind that we are just little colonies down here in the geo strategic 5 eyes. Our Prime Ministers are Mayor McCheese level in the big picture as our Governor Generals call the shots.

    They report to the Queen. We are just corporate outposts. View us in this regard while also considering that Brexit and the recent Nuke Sub deal Oz has with the US -Shafting the French, seems confirmation of the Anglo Alliance going it alone…

    BTW, Did you know that International waters are measured out, not from the shore but the Continental Shelf? Google Earth a map of NZ and look at that shallow water for a true appreciation for our territory of non Nukness

    • Back.

      This was hilarious:

      “Our Prime Ministers are Mayor McCheese level in the big picture as our Governor Generals call the shots.”

      and on this one:

      “They report to the Queen. We are just corporate outposts.”

      I was on an Australian website known as Gumshoe News, vie Julius Skoolafish (who you have probably seen around these parts). I made mention of the same fact and a fella over there (who is not posting here from time-to-time) sort of indicated that I was wrong; however, I was pretty sure that I might not have been and concur with you. Now, being over in the states, I did not wish to be a schmuck and get into an issue on the matter, so I just kept it light and agreed that I may have more to learn. My point – hearing you say it (ans as I stated above, you are my senior and I trust you), make me feel that I was not too off, even if I may have mis-framed it in my writing (I am not mad at the fella and I do not feel he was in the wrong, I just might have not written my point so well).

      Oh yeah, I have been following that nuke deal in Oz. In fact I just read two good ones on (of all places) RT, since the U.S. is really virtually mum on the whole deal and when they are speaking it is gibberish (you are not missing much my friend – same old, same old).

      On this part, I will need to follow up with you, but I have little doubt:

      “BTW, Did you know that International waters are measured out, not from the shore but the Continental Shelf? Google Earth a map of NZ and look at that shallow water for a true appreciation for our territory of non Nukness.”

      Now it seems to me that you are really enjoying life amongst the Hobbits (kidding – Peter Jackson reference). If you do not mind me asking, why did you choose NZ? It looks beautiful and anyone that I have ever met from there was really level headed and friendly; however, I am impressed that one of us would choose it as a location. Please do not feel the need to be too detailed as we are on a public forum; however, I was just wondering.

      Now for a quick list:

      I have often alluded with you to friends from NZ, we have them through St. John’s Ambulance (where I heard about gangs). I cannot get into the details right now, but someday I will be happy to do so. Also, I knew a guy who was with PDL Toll (an American).
      At one time back in 2007ish, I was thinking of opening a segregated account with the Perth mines. I scuttled the idea because I could not visit the mine at the time, and did not wish to go in blind.
      I really do believe that you would enjoy the first documentary, China Hustle. On the second, one I am not sure yet.
      Sorry I was such a goof (maybe still a goof) when I arrived here almost a year ago. I have so little experience in communicating with folks online, that I was just “green”, nervous and plain foolish. Thanks for your patience with me; I am deeply appreciative.


      Those orange and brown stones were diamonds that I was also following around 07, coming out of Australia. I was interested in contrarian ideas and began to think about the colored diamonds market; however even with a 15% growth year over year, I did not like the nature and control over those markets, so I abandoned the idea.

      Your generosity on the REITs question was a big deal to me, and I often appreciate when we have a moment to speak. Please be well.

      All my best,

      • Wow – thanks SC, I hadn’t listened to “really graceful” for quite a while. Her voice is so very listenable to.

        First thing I noticed at 2:05 was the symbol of Mélusine. Let’s stay with that digression just because it is interesting (and perhaps topical):

        From “Ghost Empire” by Richard Fidler:

        “Raymond de La Forêt was born into a noble family in France that had fallen on hard times. The Count of Poitou took pity on Raymond’s penniless father, so he adopted the boy and raised him as his son in his castle in Poitiers. … “

        I won’t reproduce the full story of how Raymond met Mélusine and the legend that ensued here – you can read a similar version (the French version of this folklore) here …

        … but at page 256-7 of “Ghost Empire” we find a link between the legend of Mélusine and the history of Constantinople:

        “The legend of Mélusine was written in 1387 by Jean d’Arras. The tale grew up around a Byzantine princess known as Melissena of Constantinople.

        This real life Melissena was the fruit of a particularly exotic family tree, born sometime in the middle of the ninth century as the granddaughter of the Emperor Michael I Rangabe, who was descended from the Khazars. Michael’s wife, the Empress Procopia, was part-Khazar too, but she could trace her ancestry all the way back to the Han emperors of China. So the twin streams of Byzantine and Chinese royal blood flowed through Melissena’s veins.

        [Just re-read that paragraph and let it sink in – I have no idea whether it is significant]

        Melissena was considered a very desirable potential bride until her family’s political fortunes collapsed. Her father was castrated by his enemies [ I didn’t mean to go there], and the poor girl was sent away to a convent. When Melissena came of age she was married off to a Viking warrior called Inger, a soldier in the Varangian Guard.

        Inger was well pleased with his bride and brought her with him to the court of the King of the Franks, where he boasted of her double royal lineage. Word of the exotic princess from Constantinople spread through France, and Melissena became an object of fascination in the courts of western Europe. Her exquisite manners and cultural education set her apart from the crude westerners and made her seem other-worldly.

        After she died, the story of Melissena evolved into the folktale of Mélusine. The double fish tail of the water faerie symbolises the twin streams of Melissena’s royal blood.”

        Further interesting reading …

        One interesting little titbit from this anecdote is that the Starbucks logo was directly derived from the mythical occult character of Mélusine.

        • All of this is fascinating. Thank you for the history and the post!

          I think we discussed that Starbucks symbol origin a few weeks back; however all this additional history is excellent.


  6. I’ll address those inquiries on a relevant future topic when it arises. This is Russ’s blog so prefer to stay supportive in that regard.

  7. Seems Steve Munchkin is back with a private equity fund, supplied by sovereign funds in the Middle East (think Saudis).

    Now who is up for a friendly bet?

    My wager is that Jared folds his private equity project into this new fund and they join forces. This is a long play, but please do not be surprised if I get this one pretty right. It’ll be YUGE.


  8. Folks, I hate to get all conspiracy on you all; however, I do think an October surprise is in the air.

    Now there are way too many data points to even try to narrow this one down. RW thinks it could be POTUS. BGNZ thinks bank failures. ME, haven’t got a clue. If I was to be the monkey that I am, throwing at that dartboard, I would go with trade, ports and tankers…yet this could be a real shot in the dark. RW mentioned the ports and tankers last week, but I would opine there is new data to layer upon his, previous, work.

    Strap in, prepare and keep one another close.


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