How The Petrodollar Quietly Died, And Nobody Noticed

How The Petrodollar Quietly Died, And Nobody Noticed (ZeroHedge, Nov 3, 2014):

The Petrodollar, long serving as the US leverage to encourage and facilitate USD recycling, and a steady reinvestment in US-denominated assets by the Oil exporting nations, and thus a means to steadily increase the nominal price of all USD-priced assets, just drove itself into irrelevance. A consequence of this year’s dramatic drop in oil prices, the shift is likely to cause global market liquidity to fall.  This decline follows years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling. But no more: “this year the oil producers will effectively import capital amounting to $7.6 billion.

Why Housing Is Dead: First-Time Buyers Collapse To 27-Year Lows

Why Housing Is Dead: First-Time Buyers Collapse To 27-Year Lows (ZeroHedge, Nov 3, 2014):

The Millennials (one of the biggest generations in US history) are just not getting with the status quo program. As we detailed previously, with lower credit scores, less disposable income, and a soaring number of people living with their parents; so it should be no surprise that The National Association of Realtors (NAR) today admitted that first-time homebuyers plunged to the lowest level in 27 years. The blame – of course – rather than low/no-growth fiscal policies, student debt servitude, and inequality-driving cheap-funding monetary policy, is price comnpettion from ‘investors’ and too “stringent credit standards,” perfectly mirroring FHFA’s Mel Watt’s Einsteinian insanity desire to dramatically ease lending standards and slash minimum down-payments (as we noted previously). Perhaps NAR accidentally stumbles on the biggest reason no one is buying in their profiling: the typical first-time buyer was 31-years-old, while the typical repeat buyer was 53 – smack in the middle of the Millennial collapse.

Japan’s Monetary Pearl Harbor

kuroda_0

Japan’s Monetary Pearl Harbor  (Of  Two Minds, Nov 2, 2014):

Trying to “fix” a sclerotic, inefficient state-cartel economy by boosting inflation–the ultimate goal of Japan’s Monetary Pearl Harbor– is a self-liquidating path to destruction.

The Bank of Japan’s surprise expansion of financial stimulus strikes me as the monetary equivalent of Pearl Harbor –not in the sense of launching a pre-emptive war (though the move does raise the odds of a global currency war), but in the sense of a leadership pursuing a Grand Strategy to the point of self-destruction because they have no alternative within their intellectual and political framework.

Most People Cannot Even Imagine That An Economic Collapse Is Coming

… because it threatens the status quo.

Especially parents of small children seem to be completely ‘unable’ to imagine what is coming.


Most People Cannot Even Imagine That An Economic Collapse Is Coming (Economic Collapse, Nov 2, 2014):

The idea that the United States is on the brink of a horrifying economic crash is absolutely inconceivable to most Americans.  After all, the economy has been relatively stable for quite a few years and the stock market continues to surge to new heights.  On Friday, the Dow and the S&P 500 both closed at brand new all-time record highs.  For the year, the S&P 500 is now up 9 percent and the Nasdaq is now up close to 11 percent.  And American consumers are getting ready to spend more than 600 billion dollars this Christmas season.  That is an amount of money that is larger than the entire economy of Sweden.  So how in the world can anyone be talking about economic collapse?  Yes, many will concede, we had a few bumps in the road back in 2008 but things have pretty much gotten back to normal since then.  Why be concerned about economic collapse when there is so much stability all around us?

Unfortunately, this brief period of stability that we have been enjoying is just an illusion.

Read moreMost People Cannot Even Imagine That An Economic Collapse Is Coming

Why Apple Is Preparing To Issue Even More Bonds

Why Apple Is Preparing To Issue Even More Bonds (ZeroHedge, Nov 3, 2014):

As its recent 10-K confirmed, AAPL’s domestic cash – the amount of cash available for such corporate transactions as dividends and buybacks – had dropped to just $18.1 billion (and that is including the several billion in commercial paper issued in fiscal Q4), the lowest domestic cash hoard since March 2010, a time when AAPL’s offshore cash was a tiny $24 billion compared to the near record $137 billion last quarter!  So knowing full well that a buyback a day keep the Icahnator away, AAPL, urgently looking to refill its domestic cash since its offshore cash remains untouchable (absent being taxed on its repatriation), did the only thing it could do: prepare to issue more bonds, which is what we forecast would happen a few weeks ago, and what the WSJ overnight confirmed is already in progress.

The ‘Fragile’ Potemkin Stock Market Conceals A Post-Industrial Slum

Signs and Wonders (Kunstler, Nov 3, 2014):

“Holy smokes,” Janet Yellen must have barked last week when Japan stepped up to plug the liquidity hole left by the US Federal Reserve’s final taper trot to the zero finish line of Quantitative Easing 3. The gallant samurai Haruhiko Kuroda of Japan’s central bank announced that his grateful nation had accepted the gift of inflation from the generous American people, which will allow the island nation to fall on its wakizashi and exit the dream-world of industrial modernity it has struggled through for a scant 200 years.

Read moreThe ‘Fragile’ Potemkin Stock Market Conceals A Post-Industrial Slum

Guess How Much Americans Plan To Spend On Christmas And Halloween This Year…

Guess How Much Americans Plan To Spend On Christmas And Halloween This Year…

Guess How Much Americans Plan To Spend On Christmas And Halloween This Year… (Economic Collapse, Oct 27, 2014):

It is that magical time of the year for retailers.  The period between mid-October and late December can often make the difference between success or failure in the retail industry, and this year will be no exception.  As you will see below, it is being projected that Americans will spend a massive amount of money this holiday season.  In fact, what Americans plan to spend on Christmas this year is greater than the yearly GDP of the entire nation of Sweden.  So isn’t this good economic news?  Shouldn’t we be happy that Americans are opening up their wallets so eagerly?  Well, it depends how you look at it.  Even though our spending is increasing, our incomes are not.  As I discussed the other day, 50 percent of American workers make less than 28,031 dollars a year and incomes have been stagnant for years.  That means that any increases in spending must be funded by more debt, and that is not good news at all.

In 2014, approximately 70 percent of all Americans will participate in Halloween.  It seems like with each passing year this dark holiday become even more popular, and before it is all said and done it is being projected that Americans will spend a whopping 7.4 billion dollars this time around…

Read moreGuess How Much Americans Plan To Spend On Christmas And Halloween This Year…

Where Is Swiss Gold? – Location, Location, Location

Where Is Swiss Gold? – Location, Location, Location (ZeroHedge, Nov 3, 2014):

With the Swiss gold stored at the Bank of Canada, now having been transferred out of the Bank of Canada’s Ottawa vault to an unknown location, the Swiss public would be wise to question the SNB on this move. The Swiss gold stored at the Bank of England in London seemingly being ‘actively managed’ one of the world’s largest centres for unallocated gold trading, the Swiss public would also be wise to enquire on this issue. And with significant historical quantities of Swiss gold that were stored with the US Federal Reserve Bank in New York no longer there after the SNB seemingly brought their US vaulted gold holdings to zero, the Swiss public need to question why these particular holdings were targeted for sales from 2000-2005 and not domestically held gold.

The Experiment That Will Blow Up The World

kuroda_0

The Experiment that Will Blow Up the World (Acting Man, Oct 31, 2014):

The BoJ Goes Even Crazier

It has been clear for a while now that the lunatics are running the asylum in Japan, so perhaps one shouldn’t be too surprised by what happened overnight. Bloomberg informs us that Kuroda Jolts Markets With Assault on Deflation Mindset.

The policy hasn’t worked so far, in fact, it demonstrably hasn’t worked in Japan in a quarter of a century. Therefore, according to the Keynesian mindset, we need more of it. Mr. Kuroda therefore delivered a surprise spiking of the punchbowl that immediately impoverished Japan’s consumers further by causing a sharp decline in the yen:

Read moreThe Experiment That Will Blow Up The World

NEWSFLASH: The Federal Reserve Isn’t Stopping Quantitative Easing!

federal-reserve-quantitative-easing-printing-money

NEWSFLASH: The Fed Isn’t Stopping QE! (ZEroHedge, Nov 2, 2014):

What has been expected for quite a while has now officially happened. The Federal Reserve stated that it would stop intervening on the market where it has been buying treasury bonds and mortgage-backed securities like there was no tomorrow anymore. The program started at a rate of $45B per month but was upscaled rather fast to $85B per month before being gradually scaled back since the beginning of this year. The Fed’s balance sheet has expanded considerably as you can see on the next chart.

Federal-Reserve-Balance-Sheet

Whereas the total balance sheet of the Fed was less than 1 trillion Dollars by the end of 2008, this has been increasing exponentially and in just the last 24 months the assets on the Fed’s balance sheet increased by 60% to 4.5 trillion dollars. Yellen has kept her promise as she said she’d scale the open-market purchases back if the economy would strengthen sooner than anticipated.

Read moreNEWSFLASH: The Federal Reserve Isn’t Stopping Quantitative Easing!

Silver Coin Sales At US Mint Soar To Highest In Two Years

Silver-American-Eagle

Silver Coin Sales At US Mint Soar To Highest In Two Years (ZeroHedge,  Nov 2, 2014):

It never fails: any time there is a dump in precious metals through their paper representation (GLD, SLV, or futures) typically as a hedge to a rally in the dollar (because last week Japan materially increasing its fiat monetary base was also somehow negative for gold and silver) or to meet margin demands from cross-asset liquidation, demand for physical PMs soars confirming yet again that any connection between paper prices and physical demand no longer exists. As reported on Friday, sales of American Eagle silver coins by the U.S. Mint jumped 40 percent in October to the highest in 21 months, defying a slump in New York futures to the lowest in more than four years.

The Silver Nightmare Will Be Over Soon

Ted Butler: The Silver Nightmare Will Be Over Soon (Peak Prosperity, Nov 1, 2014):

Halloween couldn’t have been more terrifying for silver investors. The gray metal cracked under $16/oz on Friday, a price not seen for nearly half a decade.

For years now, it has seemed like silver has been beaten down so badly its price couldn’t go lower. But then it has.

Why has silver seen such a gut-wrenching price decline? (now down 2/3 compared to its high in late 2011). And will it ever see brighter days again?

This weekend, Chris has a long discussion with silver expert Ted Butler on the real culprit behind the wild price slams that have plagued silver: unfairly concentrated positions within the derivatives market:

Read moreThe Silver Nightmare Will Be Over Soon

‘Win ugly or lose pretty’: ‘Dr. Evil’ lobbyist teaches US oil and gas execs to play dirty

‘Win ugly or lose pretty’: ‘Dr. Evil’ lobbyist teaches US oil and gas execs to play dirty (RT, Nov 2, 2014):

A top US political consultant, dubbed “Dr. Evil”, has been caught on tape at an industry conference, advising oil and gas execs to regard public policy as “endless war” and to play on people’s fear and greed to lobby their interests.

Richard Berman’s speech, which he gave in June in Colorado Springs, was leaked to The New York Times by one of the participant’s at the conference who said: “It just left a bad taste in my mouth”. The whistleblower asked for their identity not to be revealed.

Read more‘Win ugly or lose pretty’: ‘Dr. Evil’ lobbyist teaches US oil and gas execs to play dirty

Slavery Is Now Being Put Into Practice By The Ukrainian Government

Ukraine crisis

Slavery Is Now Being Put into Practice by the Ukrainian Government (Washington’s Blog, Nov 1, 2014):

Results from Ukraine’s New Law for Government-Imposed Slavery

(And How Western ‘News’ Media Have Hidden All of This from You)

On September 26th, I headlined “Ukraine Government Officially Introduces Slavery, with Vague Terms,” and I wondered when and where the reports of the consequences of this new law (by a newly installed U.S.-ally government, no less) would be published. An answer to that question is finally starting to appear.

On October 30th was published at

Read moreSlavery Is Now Being Put Into Practice By The Ukrainian Government

Warning: Avoid This Corrupt, Third-World Country At All Costs

Detroit-Third-World

Warning: Avoid This Corrupt, Third-World Country At All Costs (Sovereign Man, Oct 31, 2014):

John Anderson, an American tourist from San Clemente, California, was driving down a poorly-maintained highway when he saw flashing lights in his rearview mirror.

After a brief exchange with the local police officer, Anderson was shocked when the cop started searching his vehicle.

Anderson had $25,180 in US dollar cash in the car, which by the way was not a crime according to the local laws.

When the cop saw it, he told Anderson that we would take it and threatened him with arrest if he protested.

Read moreWarning: Avoid This Corrupt, Third-World Country At All Costs

And, So It Begins … The Doomsday Machine Has Been Unleashed In Tokyo

And, so it begins………….. (ZeroHedge, Nov 1, 2014):

doomsday_machine_ortho_by_unusualsuspex-d6x8mse

Courtesy of the StealthFlation Blog

By eviscerating the U.S. Bond market, they have completely destroyed the time value of money.  Thus, there no longer exists a viable and productive term deposit on savings.   

Read moreAnd, So It Begins … The Doomsday Machine Has Been Unleashed In Tokyo

Meanwhile, The French Are Revolting …

20141031_france1

Meanwhile, The French Are Revolting… (ZeroHedge, Oct 31, 2014):

Amid record unemployment, even recorder youth unemployment, and politicians willingly breaking EU treaties (with apparently no consequences), it appears – just as in the US – police brutality in France was the straw that broke ‘Le Camel’s back. As RT reports, another anti-police brutality protest turned violent in the French city of Rennes, with masked youths and police engaging in running street battles. The unrest follows the death of a young environmental activist earlier this week. Overnight Thursday, protesters in the northwestern city lobbed flairs at police and flipped over cars, some of which they set ablaze. Police responded by firing tear gas. We hear guillotines are still cheap on ebay.

The French (youth) are revolting…

‘The Most Important Chart For Investors’ Flashback, And Why USDJPY 120 Is Now Coming Fast

–  “The Most Important Chart For Investors” Flashback, And Why USDJPY 120 Is Now Coming Fast (ZeroHedge, Oct 31, 2014):

Back in late September, we posted what Albert Edwards thought at the time was “The Most Important Chart For Investors” which was quite simply, a chart of the USDJPY. Here is the punchline of what he said:

We have long believed that investors ignore Japan at their peril. Time and time again, investors have missed major global market trends that have been catalysed by Japan. We have felt for some time that a fragile Chinese economy could be pushed over the edge by a further yen devaluation – in many ways a replay of the Asian crisis of 1997. And just as the Chinese real economy data has taken a turn for the worse in August, the yen has slipped below a key 15-year support level against the dollar. This is probably the most important chart investors should focus on. The next phase of global currency wars may have begun.

Read more‘The Most Important Chart For Investors’ Flashback, And Why USDJPY 120 Is Now Coming Fast

The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging

The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging (David Stockman’s Contra Corner, Oct 31, 2014):

This is just plain sick. Hardly a day after the greatest central bank fraudster of all time, Maestro Greenspan, confessed that QE has not helped the main street economy and jobs, the lunatics at the BOJ flat-out jumped the monetary shark. Even then, the madman Kuroda pulled off his incendiary maneuver by a bare 5-4 vote. Apparently the dissenters – Messrs. Morimoto, Ishida, Sato and Kiuchi – are only semi-mad.

Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year – a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%.

Read moreThe BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging

The Halloween Yen Massacre Sends Market To All-Time Highs

kuroda_0

The Halloween Yen Massacre Sends Market To All-Time Highs (ZeroHedge, Oct 31, 2014)

Related info:

What The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON

Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High – Nikkei Futures Halted Limit Up (+1100) As USDJPY Tops 112

What The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON

Charting Banzainomics: What The BOJ’s Shocking Announcement Really Means (ZeroHedge, Oct 31, 2014):

Still confused what the BOJ’s shocking move was about, aside from pushing the US stock market to a new record high of course? This should explains it all: as the chart below show, as a result of the BOJ’s stated intention to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month it means the BOJ will now soak up all of the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month.

In other words. The Bank of Japan’s expansion of record stimulus today may see it buy every new bond the government issues.

This is what full monetization looks like.

BOJ expansion chart

More from Bloomberg:

Read moreWhat The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON