Economy

Oakland activists block Israeli ship for third day

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– Oakland activists block Israeli ship for third day (Al Jazeera, Aug 18, 2014):

They are considering making the action a weekly event, to coincide with the arrival of new vessels

Pro-Palestinian protesters on Monday continued a campaign to block an Israeli commercial vessel from docking in Oakland, California, for a third day.

About 20 protesters arrived at the port at 5 a.m. local time to block the container ship, owned by Zim Shipping Services Ltd., one of the world’s largest container shipping companies, from entering the Port of Oakland and unloading cargo. Two demonstrators were detained and cited, according to the Oakland Police Department.

Read moreOakland activists block Israeli ship for third day

Evelyn de Rothschild Interview On China (Bloomberg Video)

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H/t reader squodgy:

“Several years ago, when I first got interested in who owns what, I saw this video which shows where the man himself was worming his way in.

Not only is he now selling weather guarantees (no connection with chemtrails & HAARP there then?!?!….erm), he is advocating the one world currency and the supervisor of the Chinese Central Bank is his ‘friend’.

Again, what we are seeing is all window dressing to keep us confused. Whatever Vlad does with China, it has Rothschild’s nod of approval because they’re already in there.

Think about it, the USA and EU are bust, the BDI is bottomed so world trade is grinding to a halt. China has just admitted it has been borrowing trillions to build twenty cities……….who other than the people who own 90% of world assets would stump up that much? It was their perfect leverage to gain control of the Chinese financial sector.

In my humble opinion, the Chinese Credit Card is one of Rothschild’s moves, and if Vlad locks in to it, it will please Evelyn.”

June 7 (Bloomberg) — Evelyn de Rothschild, chairman of E.L. Rothschild Ltd., talks about China’s economic development and outlook for the country’s financial services industry. De Rothschild speaks from Beijing with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)

Absolute Bubble Insanity: For Nearly Half A BILLION Dollars, Here Is The World’s Most Expensive Penthouse

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–  Absolute Bubble Insanity: For Nearly Half A Billion Dollars, Here Is The World’s Most Expensive Penthouse (ZeroHedge, Aug 19, 2014):

Forget Hong Kong, London and New York: when it comes to the pinnacle in absolute real estate insanity – perhaps in all of history – look no further than James Bond’s favorite gambling mecca, Monaco. It is in this tiny Riviera principality where we find the Tour Odeon, a double-skyscraper being built by Groupe Marzocco SAM near Monaco’s Mediterranean seafront, which will contain a 3,300 square-meter (35,500 square-foot) penthouse with a water slide connecting a dance floor to a circular open-air swimming pool. The description is nice, but it is the bottom line that is mindblowing: Bloomberg reports that the apartment may sell for more than 300 million euros ($400 million) when it goes on the market next year, French magazine Challenges reported. That would make it the world’s most expensive penthouse, according to broker Knight Frank LLP.

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Wall Street banks ‘may desert UK for Ireland’ if Britain leaves EU

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– Wall Street banks ‘may desert UK for Ireland’ if Britain leaves EU (RT, Aug 19, 2014):

Wall Street banks could abandon Britain for the Republic of Ireland if the UK decides to leave the EU, senior figures in the industry have reportedly said. This is despite a Forbes report that names London the world’s ‘most influential city’.

Changes to EU banking rules could see London stripped of its financial preeminence. Some major institutions including Bank of America, Citigroup and Morgan Stanley are believed to be drawing up plans to desert the City amid concerns the UK is drifting further from the EU.

This is despite a Forbes list of “The World’s Most Influential Cities 2014” which ranked London as the most influential city in the world, because it attracts more than double the amount of foreign direct investment deals than New York, which came in second.

Read moreWall Street banks ‘may desert UK for Ireland’ if Britain leaves EU

Putin Considers Banning Jack Daniel’s

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xi-jinping-vladimir-putin

– Putin Considers Banning Jack Daniel’s (ZeroHedge, Aug 19, 2014):

We knew the blowback from western sanctions against Russia would get serious – and Europe is already finding that out the hard way – but Vladmimir Putin appears to have gone ‘cruel-and-unusual’ in his latest step. As ITAR-TASS reports, Russian consumer-protection agency Rospotrebnadzor will decide in next few days whether to seize Jack Daniel’s Tennessee Whiskey and Honey Liqueur after ‘reportedly’ finding “suspicious” chemicals in batch of flavored whiskey on sale in Sverdlovsk stores. Luckily Jack Lew has told us this will not impact the US economy (unless of course, you are Jack Daniels).

Read morePutin Considers Banning Jack Daniel’s

36% Of Americans Haven’t Saved Anything For Retirement

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– 36% Of Americans Haven’t Saved Anything For Retirement (CBS, Aug 18, 2014):

Over a third of all Americans (36%) have not saved any money for retirement, according to a new Bankrate.com (NYSE: RATE) report. Sixty-nine percent of 18-29 year-olds haven’t saved anything, along with 33% of 30-49 year-olds, 26% of 50-64 year-olds and 14% of people 65 and older.

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Europe unveils €125 MILLION in ‘exceptional support’ to food producers – EU farmers could lose up to $16 BILLION

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– Europe unveils €125mn in ‘exceptional support’ to food producers (RT, Aug 18, 2014):

The European Commission said it will provide up to €125 million from Monday till the end of November to compensate food producers coping with Moscow’s food ban.

“The exceptional measures announced today will include market withdrawals especially for free distribution, compensation for non-harvesting and green harvesting. The financial assistance will cover all producers whether they are organized in producers organizations or not,” the European Commission said in the statement.

Read moreEurope unveils €125 MILLION in ‘exceptional support’ to food producers – EU farmers could lose up to $16 BILLION

Russia Launches China UnionPay Credit Card

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unionpay

– Russia launches China UnionPay credit card (RT, Aug 15, Edited Aug 18, 2014):

Forget Visa and MasterCard. After the two American credit system payment companies froze accounts without notice in March, Russia has been looking for an alternative in China UnionPay.

China UnionPay plans to have 2 million cards in Russia in the next three years.

Instead of seeing the small Visa and MasterCard logo on credits cards, ATMs, and retail outlets, Russians will start to see the three words “China. Union. Pay.”

Read moreRussia Launches China UnionPay Credit Card

Obama’s Secret TPP Deal Would Be Disastrous For America

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obama-my-work-here-is-done

– Obama’s Secret TPP Deal Would Be Disastrous For America (Economy in Crisis, Aug 15, 2014):

Recent reports continue to show that our economy is still struggling. Instead of solving the problem, President Obama continues to push for more secret “free trade” agreements, modeled after the North American Free Trade Agreement. Especially disturbing, in the President’s grand push for a 12-nation trade pact dubbed the Trans-Pacific Partnership(TPP), is that Congress has been left out of negotiations. “We want transparency. We want to see what’s going on there,” House Minority Leader Nancy Pelosi (D-Calif.) told reporters. “We have a problem with that.”

Instead of Granting Congress more transparency, the president has asked for Congress to grant him Trade Promotion Authority or Fast Track as it is also called. This would mean the president could sign the deal before Congress approves it and then ram it through Congress with limited debate and no opportunity of filibuster.

Read moreObama’s Secret TPP Deal Would Be Disastrous For America

“Anti-Putin” Alliance Fraying: Germany, Slovakia, Greece, Czech Republic Urge End To Russian Sanctions

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putin smile_0

– “Anti-Putin” Alliance Fraying: Germany, Slovakia, Greece, Czech Republic Urge End To Russian Sanctions (ZeroHedge, Aug 16, 2014):

Last week Germany reported that in the second quarter, its GDP declined by 0.2%, worse than Wall Street consensus. This happened a few shorts days after Italy reported a second consecutive decline in its own GDP, becoming the first Europen country to enter a triple-dip recession. What’s worse, Europe’s slowdown took place before the brunt of Russian sanctions hit. Surely in the third quarter the GDP of Germany, a nation whose exports accounts for 41% of GDP, will be even worse, with whisper numbers of -1% being thrown casually around, but one thing is certain: Europe is about to enter its third recession since the Lehman collapse just as we forecast at the end of 2013, a “triple-dip” which may become an outright depression unless Draghi injects a few trillion in credit money (which will do nothing but delay the inevitable and make it that much worse once the can can no longer be kicked), and unless normal trade ties with Russia are restored.

Read more“Anti-Putin” Alliance Fraying: Germany, Slovakia, Greece, Czech Republic Urge End To Russian Sanctions

Washington Post: Europe Is Stuck In a “Greater Depression”

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–  Washington Post: Europe Is Stuck In a “Greater Depression” (Washington’s Blog, Aug 15, 2014):

“It’s a Little Misleading to JUST Call This a Depression. It’s WORSE than That”

The Washington Post’s Wonkblog reports:

Europe hasn’t recovered, because it hasn’t let itself. Too much fiscal austerity and too little monetary stimulus have, instead, put it more than halfway to a lost decade that’s already worse than the 1930s.

It’s a greater depression.

Read moreWashington Post: Europe Is Stuck In a “Greater Depression”

Japan’s Keynesian Demise: A Cautionary Tale For Our Times

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– Japan’s Keynesian Demise: A Cautionary Tale For Our Times (David Stockman’s Contra Corner, Aug 15, 2014):

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The ragged Keynesian excuse that all will be well in Japan once the jump in the consumption tax from 5% to 8% is fully digested is false. Here’s the problem: this is just the beginning of an endless march upwards of Japan’s tax burden to close the yawning fiscal gap left after the current round of tax increases, and to finance its growing retirement colony. There is no possibility that Abenomics will result in “escape velocity” Japan style and that Japan can grow its way out of it enormous fiscal trap. Instead, nominal and real growth will remain pinned to the flatline owing to peak debt, soaring retirements, a shrinking tax base and a tax burden which will rise as far as the eye can see. Call that a Keynesian dystopia. It is a cautionary tale for our times. And Japan, unfortunately, is just patient zero.

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NAFTA Is 20 Years Old – Here Are 20 Facts That Show How It Is Destroying The Economy

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NAFTA-Logo

– NAFTA Is 20 Years Old – Here Are 20 Facts That Show How It Is Destroying The Economy (Economic Collapse, Aug 14, 2014):

Back in the early 1990s, the North American Free Trade Agreement was one of the hottest political issues in the country.  When he was running for president in 1992, Bill Clinton promised that NAFTA would result in an increase in the number of high quality jobs for Americans that it would reduce illegal immigration.  Ross Perot warned that just the opposite would happen.  He warned that if NAFTA was implemented there would be a “giant sucking sound” as thousands of businesses and millions of jobs left this country.  Most Americans chose to believe Bill Clinton.  Well, it is 20 years later and it turns out that Perot was right and Clinton was dead wrong.  But now history is repeating itself, and most Americans don’t even realize that it is happening.  As you will read about at the end of this article, Barack Obama has been negotiating a secret trade treaty that is being called “NAFTA on steroids”, and if Congress adopts it we could lose millions more good paying jobs.

Read moreNAFTA Is 20 Years Old – Here Are 20 Facts That Show How It Is Destroying The Economy

“Soros Put” Rises To Record: Is The Billionaire Investor Betting On Market Crash?

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George-Soros

– “Soros Put” Rises To Record: Is The Billionaire Investor Betting On Market Crash? (ZeroHedge, Aug 15, 2014):

Back in February we observed, with some surprise, when Soros Fund Management, the investment vehicle of the famous Hungarian billionaire investor revealed in its Q4 13F that the firm had taken its bearish S&P 500 ETF – aka SPY – put exposure to a then record $1.3 billion notional, prompting us and many others to ask if Soros was preparing for a market crash. Fast forward to today when following the latest 13F disclosure from the same fund, we note, with double the surprise that a quarter after the same ETF put was lowered to “only” $299 million notional, Soros has once again increased his total SPY Put to a new record high of $2.2 billion, or nearly double the previous all time high, and a whopping 17% of his total AUM.

Some observations, which we presented previously: the “Soros put” is a legacy hedge position that the 84-year old has been rolling over every quarter since 2010. Since this was an increase of 638% Q/Q this has some people concerned that the author of ‘reflexivity’ and the founder of “open societies” may be anticipating some major market downside.

Furthermore, remember that what was disclosed yesterday is a snapshot of Soros’ holdings as of 45 days ago. What he may or may not have done with his hedge since then is largely unknown, and since there are no investor letters, there is no way of knowing even on a leaked basis how the billionaire has since positioned for the market.

Then again, considering that not only Yellen, who has warned about bubble pockets in stocks, but the BIS, Icahn and numerous other fund managers, now openly warn that the entire market has entered bubble territory, perhaps this is a case where the simplest explanation is also the right one…

Warren Buffett’s Dad Was Right (About Everything)

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From the article:

“Far away from Congress is the real forgotten man, the taxpayer who foots the bill… For if human liberty is to survive in America, we must win the battle to restore honest money.”

“the paper money disease here may take many years to run its course…but when that day arrives, our political rulers will probably find that foreign war and ruthless regimentation is the cunning alternative to domestic strife.”

– The key libertarian in Warren Buffett’s life who he never listened to (The Blaze, Aug 13, 2014):

Warren Buffett has famously supported the Obama administration and other Democrats, even lending his name to the so-called “Buffett Rule,” which calls for raising income taxes on high earners. As such, it may surprise you to learn that a key person in Warren Buffett’s life was an ardent proponent of political views diametrically opposed to those of the “Oracle of Omaha.”

111 years ago today, Warren’s father Howard Homan Buffett was born in Omaha, Nebraska. Buffett, like his son Warren, worked in the investment business, but also served four terms in the U.S. House of Representatives from 1943-1949 and then again from 1951-1953, as an anti-New Dealer, anti-Fair Dealer and overall anti-interventionist of the Republican “Old Right.” Politically, it could be said that Buffett was the Ron Paul of his day.

Buffett even corresponded with leading libertarian Murray Rothbard, asking Rothbard in one letter where he might be able to procure a copy of his “The Panic of 1819,” so that he could pass it along to his son.

Read moreWarren Buffett’s Dad Was Right (About Everything)

Canada Releases Atrocious Jobs Data; Then Revises It Above The Highest Estimate Following Public Outcry

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– Canada Releases Atrocious Jobs Data; Then Revises It Above The Highest Estimate Following Public Outcry (ZeroHedge, Aug 15, 2014):

This morning it was take two for the Canada jobs print, which was as follows: In July, Canada employment increased 41.7K in July according to Statistics Canada, from -9.4K in prior month. This was about 41K higher than the previous “erroneous” print, and double the original estimate: high enough to make everyone happy. In fact, it was so high, it surpassed the highest range of the forecast, which topped out at 41.4K based on 20 economists.

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Europe Blinks – May Cancel Russian Sanctions

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checkmate

– Europe Blinks – May Cancel Russian Sanctions (ZeroHedge, Aug 15, 2014):

It appears the pain that Europe is already suffering post-Russian sanctions, is too much to bear (as we explained here). While NATO admits it saw Russian military forces cross the Ukraine border, European leaders, after discussions on widespread ‘aid’ for nations suffering from Russia’s food ban, have said they are ‘ready to review Russia sanctions’ if the situation stabilizes. Furthermore, snubbing Washington, European leaders said they do not want to impose more sanctions on Russia. Obama alone again?

As Bloomberg notes,

Read moreEurope Blinks – May Cancel Russian Sanctions

Mr. ‘Making $400,000 PER HOUR’ David Tepper Unwinds S&P, Nasdaq Calls; Liquidates QCOM, JPM; Adds To AAL, GM: Full 13F

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Related info:

– Making $400,000 PER HOUR, The Best Paid Hedge Fund Manager In 2013 Was …

David-Tepper

– David Tepper Unwinds S&P, Nasdaq Calls; Liquidates QCOM, JPM; Adds To AAL, GM: Full 13F (ZeroHedge, Aug 14, 2014):

For everyone curious how the market’s favorite “balls to the wall” barometer did in the second quarter (which ended 45 days ago), here is the full breakdown.

First the notable liquidations: in the three months ended June 30, Tepper closed his SPY and QQQ Call positions, which had a total notional equivalent of over $1.5 billion, as well as liquidating his stakes in QCOM, JPM, Metlife, Trinity, Delphi, Hess, Valmont, Ingersoll-Rand, Omincom and Beazer.

Tepper entered new positions in Mohawk, Weatherford and Ryland Group.

Read moreMr. ‘Making $400,000 PER HOUR’ David Tepper Unwinds S&P, Nasdaq Calls; Liquidates QCOM, JPM; Adds To AAL, GM: Full 13F

Sanctions? ?Pentagon ‘Defies Congress To Buy Russian Helicopters For Afghanistan’

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Mi-17 helicopters

– ?Pentagon ‘defies Congress to buy Russian helicopters for Afghanistan’ (RT, Aug 14, 2014):

Despite the anti-Russian sanctions drive, the US DoD opposes American lawmakers in wanting to buy Russian-made helicopters for the Afghan forces, said Russian arms exporter Rosoboronexport.

“Despite the protests from the congressmen, suggestions of American-made alternative options, the Pentagon-level US officials are insisting on buying the Russian helicopters,” Rosoboronexport deputy head Igor Sevastyanov told journalists on Thursday.

Read moreSanctions? ?Pentagon ‘Defies Congress To Buy Russian Helicopters For Afghanistan’

14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst

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bubble burst_0

– 14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst (Economic Collapse, Aug 14, 2014):

Did you know that a major event just happened in the financial markets that we have not seen since the financial crisis of 2008?  If you rely on the mainstream media for your news, you probably didn’t even hear about it.  Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds.  Now it is happening again.  In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”.  But this is not the only indication that the U.S. economy could be on the verge of very hard times.  Retail sales are extremely disappointing, mortgage applications are at a 14 year low and growing geopolitical storms around the world have investors spooked.  For a long time now, we have been enjoying a period of relative economic stability even though our underlying economic fundamentals continue to get even worse.  Unfortunately, there are now a bunch of signs that this period of relative stability is about to end.

The following are 14 reasons why the U.S. economy’s bubble of false prosperity may be about to burst:

Read more14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst

Conditioned To Catch The Falling Knife

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falling-knife

– Conditioned To Catch The Falling Knife (ZeroHedge, Aug 14, 2014):

The numbers out last night were once again largely on the weak side of disappointing, with very little reaction and even less of an intuitive reaction. As Bloomberg’s Richard Breslow writes, this is the downside of everyone having the same positions. Simply put, we’ve been trained to catch the falling knife by the CBs, one of those trading strategies that will work until it doesn’t and when the knife slips you will really have a taper tantrum.

Via Bloomberg’s Trader’s Notes…

Some strategists are even finding good news in the euro area growth data, noting that it is impressive there is any growth at all when none was expected, unlike U.S. where 1H numbers disappointed — some people just don’t like black and white analysis.

Read moreConditioned To Catch The Falling Knife

Gazprom To Europe: We Own You (At Least Until 2016)

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–  Gazprom To Europe: We Own You (At Least Until 2016) (ZeroHedge, Aug 14, 2014):

It is no secret that in scrambling to find an alternative to Russia’s energy-export dominance, Europe is actively seeking to recreate the US shale miracle (at least superficially, recall that a month ago Germany shelved shale-gas drilling plans until at least 2021, when it would again reassess the shale ban). Curiously, one of the few places that features as a most probable candidate for shale drilling, is none other than Ukraine itself whose Dnieper-Donets basin is a place targeted by local energy company Burisma, where as we have reported extensively in the past, none other than Joe Biden’s son, Hunter, has been strategically placed as a director to give the US a front line of sight into drilling developments.

There is one problem, however, and a rather major one at that: it will take Europe years, in a best case scenario at that, before it can bring its shale output online. In fact, according to Gazprom’s quarterly report released on Wednesday, shale gas production in Europe could be possible in Europe not earlier than in 2016-2018. Which, of course, is Gazprom’s polite way of saying that for at least the next two years, and likely far longer, European marginal gas needs will be met by the dreaded Russian semi-nationalized monopoly, which in turn means that for all the posturing, the Kremlin will have an exclusive “right of first refusal” to determine European economic growth with the literal push of a button.

“Commercial shale gas production in Europe can begin not earlier than in 2016-2018 even with positive geological surveys. But production volumes will not bring about major changes in the European gas market due to a decline in conventional gas production,” the report said.

Read moreGazprom To Europe: We Own You (At Least Until 2016)