The man who trades freedom for security does not deserve nor will he ever receive either. – Benjamin Franklin
– Janet Yellen Trolls America’s Poor: Tells Them It Is Important To Get Rich (ZeroHedge, Sep 16, 2014):
The Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as “the middle.” Her message? Build assets, or said otherwise… get rich.
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– How Banks Continue FX Rigging Right Under The SEC’s Noses (ZeroHedge, Sep 16, 2014):
The good news is that the rigging of the FX markets – now conspiracy fact, not conspiracy theory – has, according to Bloomberg, forced the world’s biggest banks to overhaul how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation with the “modernization of processes that probably should have been brought in 15 or 20 years ago.” However, the FX market is far from ‘clean’ as Bloomberg notes, while banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are still communicating with clients and counterparts at other firms via Snapchat, circumventing their company’s controls right under the nose of the SEC. As one trader commented, “these [reform] changes look like fig leaves.”
As Bloomberg reports, positive changes are happening (on the surface)…
Read moreHow Banks Continue FX Rigging Right Under The SEC’s Noses
A welcome distraction: the Islamist dude with the $6.500 James Bond watch.
(The Mossad and our CIA are obviously paying well. More info down below.)
– NSA Warns “Bad Guys Are Everywhere” As Spooks Run Afoul Of German Laws Again (ZeroHedge, Sep 16, 2014):
Successfully Distracted …
We can probably “thank” ISIS for having distracted everyone from the ongoing spy scandal. A new barbaric and powerful terrorist group the danger of which is blown out of all proportion by politicians and the media is no doubt a Godsend for the national security apparatus and the military-industrial complex. In fact, this reminds us that ISIS looks suspiciously like an artificial creation anyway, one that has at some point undoubtedly received assistance from one or more states.
In a previous missive (see “Equal Opportunity Spy-Fest” for details), we discussed an article in German news magazine Der Spiegel (which has by the way done some excellent sleuthing beyond merely reporting on the content of the Snowden files). The article at Der Spiegel inter alia mentioned occasions when representatives of the “national security” apparatus or government spokesmen speaking on its behalf were caught in blatant lies and noted in its conclusion:
Read moreNSA Warns ‘Bad Guys Are Everywhere’ As Spooks Run Afoul Of German Laws Again
Related info:
– Goldman’s Take On China’s “Stealth QE”:
“Domestic media (Sina) reported that the PBOC conducted RMB 500bn of Standing Lending Facility operations with the big 5 commercial banks (ICBC, BOC, BoCOM, CCB, ABC). The reports note that the duration is 3 months and the RMB 500 bn is evenly split among the banks. This amount is roughly the same as a 50 bps cut to RRR for the whole banking system on a static basis. There is no official confirmation from the PBOC yet. Still, such an easing would be consistent with our expectation that (1) monetary policy will loosened amid the drastic slowdown in activity growth and falling inflation, and (2) full scale RRR and interest rate cuts are unlikely because they would be viewed as aggressive stimulus.”
– What Happened After China’s Last “Stealth QE”?:
In a worrying sense of deja-vu all over again, today’s rip higher reflects perfectly the US equity market’s knee-jerk reaction to the last ‘Stealth QE’ from China on July 28th. That did not end well as hot money flowed out to the instantaneously “easiest” central bank in the world…
– Markets React Violently To China’s Stealth QE:
From copper to high-yield credit and from stocks to bonds and gold, markets are reacting violently to the headlines from China that they are unleashing another 500bn Yuan “stealth QE”… everything is rallying.. except the USD (biggest drop since May).
– China Launches CNY500 Billion In “Stealth QE” (ZeroHedge, Sep 16, 2014):
It has been a while since the PBOC engaged in some “targeted” QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it’s time for some more. From Bloomberg:
- CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS
- PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA
- PBOC PROVIDES 100B YUAN TO EACH BANK TODAY, TOMORROW WITH DURATION OF 3 MONTHS: SINA
Just as expected, the Chinese “derivative” currency, the AUD, goes vertical on the news, and the S&P 500 goes vertical alongside:
– Desperate Californians steal water from fire hydrants as rich community pays half a million dollars for overwatering lawns (Natural News, Sep 15, 2014):
The ongoing water crisis in California has sparked an apparent crime wave in some parts of the state, with desperate residents illegally taking water from fire hydrants in the middle of the night to keep their lawns green and their animals happy. Reports indicate that, in some areas, as much as 10 percent of the water supply has gone missing, presumably due to theft, a premonition of much worse things to come if rains remain at bay.
The city of Lemoore, for instance, a community of some 25,000 people south of Fresno, has seen numerous water thefts in recent weeks — a growing black market for water amidst one of the worst droughts in California history. According to The Hanford Sentinel, thieves are believed to be attaching hoses to fire hydrants throughout the city and pumping water into large plastic tanks affixed to the back of trucks.
– Bank Of America Has A Message For Its European Depositors: “We May Charge You” (ZeroHedge, Sep 15, 2014):
Because Mario Draghi wasn’t joking about that whole NIRP thing. And yes, negative deposit rates mean just that.
As the letter says, don’t worry: Bank of America has an extensive team of “liquidity and investment management solutions” experts who will gladly advise you to rotate your money out of deposits and into financial stocks, preferably that of BAC itself.
– Why Scotland Has All The Leverage, In One Chart (ZeroHedge, Sep 15, 2014):
As Scotland prepares to vote for or against Independence from the Union on Thursday, it appears everyone has an opinion on what may, what should and what will happen. At the basis of every such opinion is some basis in fact, misguided as it may be in most cases, about who has all the leverage, with the dominant one being that Scotland would make a horrendous mistake if it says goodbye to the UK and puts a border around what is currently a third of UK’s landmass.
Some, such as Deutsche Bank, the bank that has the single greatest derivative exposure in the world and is therefore most leveraged to maintaining the status quo, saw its “Chief Economist & Member, Group Executive Committee, Deutsche Bank AG” David Folkerts-Landau personally put pen to paper on Friday and in rambling, demagogic terms, explain why it would be a “Wrong Turn” for Scotland to seek self-determination.
– Minimum-Wage Blowback; The De-Humanization Of Fast-Food Has Begun (ZeroHedge, Sep 15, 2014):
In January we noted ‘Smart Restaurant’ – the burger-flipping robot – and just last month we reported on China’s robotification of the fast-food business; but, as The Washington Post reports, the greatest enemy to the minimum-wage-demanding fast-food worker has arrived: you can now order your own quarter-pound bacon cheeseburger from a welcoming, non-judging machine. With McDonalds sales the worst in almost a decade, it appears their need to maintain profits has stoked a move towards dehumanization. One wonder how long before this action is also declared ‘unpatriotic’.
Read moreMinimum-Wage Blowback; The De-Humanization Of Fast-Food Has Begun
– UK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond (ZeroHedge, Sep 15, 2014):
Yuanification continues around the world. As The USA attempts to corral its allies in a ‘broad coalition’, an increasing number of people – including domestic economic policy advisors – are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world’s de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government’s reserves of foreign currency. Osborne described this dialogue outcome as “a historic moment” and a statement of British confidence in the potential of the RMB to become “the main global reserves currency”.
Read moreUK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond
– US Industrial Production Follows China; Misses With Biggest Drop Since Jan (ZeroHedge, Sep 15, 2014):
But but but… the survey all said record highs… Yet another piece of hard data hits the tape and disappoints. While Fed surveys point to an exuberant economy, Industrial Production fell 0.1% in August (missing +0.28% expectations) for its worst print since January’s “weather”-related plunge. This comes on the heels of Chinese Industrial Production at its worst in 6 years… perhaps explaining why global GDP expectations continue to test cycle lows. US Capacity Utilization also dropped to 78.8% (lowest since Feb) and the weakness was all Manufacturing driven as production slumped 0.4% MoM – its worst since Jan. So who you gonna believe? Soft surveys? or Hard data?
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What could possibly go wrong?
For the best viewing experience, watch the above video in hi-definition (HD) and in expanded screen mode
“… today the average family of four in America is associated with roughly $735,000 of debt.”
– Debt – Crash Course Chapter 13 (Peak Prosperity, Sep 12, 2014):
The fundamental failing of today’s global economy can be summarized simply: Too Much Debt
We have taken too much of it on, too fast, in too many markets around the world, to have any hope of making good on it. Not only does the math not work out, but also on a moral level, we are placing a tremendous obligation on future generations that will unfairly limit the prosperity they can enjoy tomorrow in order to finance our consumption today.
In the US alone, total credit market debt stands at over $57 trillion and is doing its damnedest to continue expanding exponentially. Since simple math shows us that this debt level cannot be supported, the key questions to ask at this stage are:
Will the unsupportable debt disappear via default, or inflation?
And very important:
Read more‘Today The Average Family Of Four In America Is Associated With Roughly $735,000 Of Debt’
Related info:
– The Fed Has A Big Surprise Waiting For You (ZeroHedge, Sep 13, 2014):
The US economy is dead. The Fed has known this for a long time, but pumped it up to where it is now to draw in all the greater fools, the so-called big investors who have made money like honey from QE and ZIRP. They are the greater fools. The American real economy ceased being a consideration long ago. We’re in for big surprises, and they won’t be pretty, they’ll be pretty nasty. There are far too many people who think of themselves as smart who don’t see the difference between a theater play and a reality show. The Fed will raise rates because that will make the biggest banks the most money. There’s nothing else that matters. The Fed can’t revive the US economy, that’s just a foolish notion. But it can suck a lot of wealth out of it.
– Speculation swirls over Fed language on rate hike (Guardian/AP, Sep 15, 2014):
When the Federal Reserve issues a policy statement after it meets this week, the financial world will be on high alert for two words:
“Considerable time.”
The presence or absence of that phrase will trigger a rush to assess the likely timing of the Fed’s first increase in interest rates since it cut them to record lows in 2008.
The Fed’s recent statements have said it expects to keep its key short-term rate near zero for a “considerable time” after it stops buying Treasurys and mortgage bonds. Those bond purchases have been intended to keep long-term rates down to support the economy.
Flashback.
Published on Jun 5, 2013
If this doesn’t wake you up, I don’t know what will.
Links to get you started on your research:
– Kohl’s And The Rest Of The Retailers Are In Deep Trouble (Sovereign Man, Sep 13, 2014):
Kohl’s And The Rest Of The Retailers Are In Deep Doo Doo
“Facts are stubborn things, but statistics are pliable.” ? Mark Twain
I never believe government manufactured numbers. They will always be adjusted, massaged, and manipulated to achieve a happy ending for the propagandists attempting to control and fleece the sheep. Yesterday, the government produced retail sales numbers for August that were weak and the corporate MSM propaganda machine immediately threw up bold headlines declaring how strong these numbers were. Positive stories were published on the interwebs and Wall Street hack economists were rolled out on CNBC, where the bubble headed bimbos and prostitutes for the status quo like Jim Cramer and Steve Liesman declared the recovery gaining strength. Woo Hoo.
Read moreKohl’s And The Rest Of The Retailers Are In Deep Trouble
– The Trials and Tribulations of “Abenomics” (Acting-Man, Sep 14, 2014):
We have frequently discussed the nonsensical attempt by Japanese prime minister Shinzo Abe and BoJ governor Haruhiko Kuroda to print and spend Japan back to prosperity. By now it is well known that devaluing the yen has not achieved the desired effect, but rather the opposite. Not only have exports not really received the expected boost, but Japan’s trade and current account surplus have decreased markedly, even posting negative numbers for the first time in decades. Of course, currency debasement never works: it cannot work. This is Keynesian logic and brilliance in all it splendor.
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– Why The Rigging Of The Gold Market Matters (Zerohedge, Sep 14, 2014):
In a radio interview recently I was asked a question to which I could not easily give a satisfactory reply: if the gold market is rigged, why does it matter?
– Russia may restrict import of Western cars, clothes in new sanctions tit-for-tat (RT, Sep 12, 2014):
Imports of Western cars and clothes into Russia could be restricted as part of a second round of “retaliatory” measures prepared in response to the sanctions against Moscow, says presidential aide Andrey Belousov.
There are many sellers of non-agricultural goods in the West who are heavily dependent on the Russian market, the official said.
Read moreRussia may restrict import of Western cars, clothes in new sanctions tit-for-tat
FYI.
– The Fed Has A Big Surprise Waiting For You (ZeroHedge, Sep 13, 2014):
…
The US economy is dead. The Fed has known this for a long time, but pumped it up to where it is now to draw in all the greater fools, the so-called big investors who have made money like honey from QE and ZIRP. They are the greater fools. The American real economy ceased being a consideration long ago. We’re in for big surprises, and they won’t be pretty, they’ll be pretty nasty. There are far too many people who think of themselves as smart who don’t see the difference between a theater play and a reality show. The Fed will raise rates because that will make the biggest banks the most money. There’s nothing else that matters. The Fed can’t revive the US economy, that’s just a foolish notion. But it can suck a lot of wealth out of it.
– Art Cashin: “Things Could Theoretically Turn Into What I Call A Lehman Moment” (ZeroHedge, Sep 13, 2014):
Courtesy of Finanz und Wirtschaft, interview by Christoph Gisiger
Wall Street veteran Art Cashin does not fully trust the record levels at the stock market and draws worrisome parallels between the geopolitical tensions over Ukraine and the Cuban missile crisis.
From the assassination of President Kennedy via the stock market crash of 1987 and the Fall of the Berlin Wall through to the burst of the dotcom bubble, the terror attacks of 9/11 and the collapse of Lehman Brothers: Art Cashin has experienced all the major world events of the last half century at the floor of the New York Stock Exchange. Currently, the highly respected Wall Street veteran keeps a close eye on the geopolitical tensions in the Middle East and on the situation in Ukraine which reminds him of the Cuban missile crisis «The markets are edgy and nervous», says the Director of Floor Operations for UBS Financial Services while constantly checking the quotation board. Like many traders here, he is somewhat skeptical of the huge stock market rally that started in March 2009. «I think it is a question of the extraordinarily low interest rates», he explains.
Read moreArt Cashin: ‘Things Could Theoretically Turn Into What I Call A Lehman Moment’
– America’s Poor Have Never Been Deeper In Debt (ZeroHedge, Sep 13, 2014):
When it comes to the poorest quartile of US society, some 14 million people, any suggestion that US society is deleveraging and setting the stage for pent up releveraging and thus, economic growth, is dead wrong. In fact, as the Fed’s triennial Survey of Consumer Finances, released last week showed, America’s poorest have never been more in debt!
– Europe Folds To Russian Demands, Delays Ukraine Free Trade Deal By Over A Year (ZeroHedge, Sep 12, 2014):
While the world was poring through the details of the latest round of preannounced western sanctions against Russia – a round which Russia commented would have virtually no actual impact – and just as excitedly awaiting the Kremlin’s retaliation which Putin warned is coming shortly, far from the glare of the center stage Europe quietly folded to a bigger Russian demand namely to delay the implementation of a Ukraine free trade deal by more than one year until the end of 2015 and likely beyond.
Read moreEurope Folds To Russian Demands, Delays Ukraine Free Trade Deal By Over A Year
– China Daily: “Western Sanctions Will Make Moscow Back The Chinese Yuan Against The Dollar” (ZeroHedge, Sep 12, 2014):
Op-Ed posted in China Daily
West’s Antics Pushing Russia closer to China
The recent NATO summit in Wales, held against the background of the armed conflict in Ukraine, has brought back the Cold War atmosphere to Europe. NATO’s partnership with Russia remains formally suspended. In fact, NATO is treating Russia more as an adversary than a partner.
Read moreChina Daily: “Western Sanctions Will Make Moscow Back The Chinese Yuan Against The Dollar”
– US Unveils Latest Russian Sanctions, Putin Immediately Responds That Russia Drafting Retaliation (ZeroHedge, Sep 12, 2014):
Moments ago, as was widely preannounced, the US Treasury unveiled its latest round of Russian sanctions. While the bigger picture was well-known, here are some of the highlights:
- U.S. SANCTIONS FOCUS ON FINANCIAL, ENERGY, DEFENSE SECTORS
- U.S. TREASURY ADDS SBERBANK TO SANCTIONS LIST,
- U.S. TREASURY SANCTIONS AFFECTS GAZPROM, GAZPROM NEFT, LUKOIL, ROSNEFT, AND SURGUTNEFTGAZ
- U.S. TIGHTENS DEBT FINANCING RESTRICTIONS TO 30 DAYS
As Bloomberg reports, action deepens existing sanctions on Russian financial institutions, expands sanctions on Russia’s energy sector, targets additional energy- and defense-related firms, U.S. Treasury says in statement. “Today’s actions demonstrate our determination to increase the costs on Russia as long as it continues to violate Ukraine’s territorial integrity and sovereignty,” Under Secretary for Terrorism and Financial Intelligence David S. Cohen says in statement
Treasury Dept says it “maintains significant scope to expand these sanctions.”
– Stanford engineers aim to connect the world with ant-sized radios (Stanford, Sep 9, 2014):
Costing just pennies to make, tiny radios-on-a-chip are designed to serve as controllers or sensors for the ‘Internet of Things.’
Stanford engineering team, in collaboration with researchers from the University of California, Berkeley, has built a radio the size of an ant, a device so energy efficient that it gathers all the power it needs from the same electromagnetic waves that carry signals to its receiving antenna – no batteries required.
Read moreStanford engineers aim to connect the world with ant-sized radios
– UK Suffers Biggest Capital Outflow Since Lehman As Scottish Vote Nears (ZeroHedge, Sep 12, 2014):
Investors pulled $27 billion out of UK financial assets last month – the biggest capital outflow since the Lehman crisis in 2008 – as concern mounted about the economic and financial consequences if Scotland left the UK, according to Reuters. Furthermore, Morgan Stanley said daily equity flow data pointed to “some of the largest UK equity selling on record.”
Read moreUK Suffers Biggest Capital Outflow Since Lehman As Scottish Vote Nears