At King World News, ShadowStats' Williams sees hyperinflation, dollar collapse

 

 

Charting The European Spread Massacre

Europe is now closed, which means the ES no volume ramp into the close will likely be next, even as the RISK index trails and allows another 10 point divergence at EOD, for today's pair trade compression opportunity. We will demonstrate it when it appears. Of course, nothing has changed, and in fact things in Europe are getting exponentially worse, with contagion now squarely hitting Italy and Spain, both of which have seen their spreads and CDS blow out in both the past week and YTD. Below is a visual update of the massacre.

 

Julian Phillips: Russian government isn't selling gold

 

 

Crunch Time Looms For Public-Sector Pensions? 

Posted by: Leo Kolivakis

Post date: 07/11/2011 - 11:20

More ideological warfare on public-sector pensions...

Graham Summers Weekly Market Forecast (Risk Off Edition)

Posted by: Phoenix Capital Research

Post date: 07/11/2011 - 11:21

How bad must things be getting that Geithner, a man who has lied and swindled the American people with impunity, and has never once suffered the consequences of his actions, is voluntarily “getting out of Dodge”? The answer: BAD.

The Cost Of Obama's Latest TV Appearance: $112.5 Million Increase In The US Deficit, $150 Million Increase In US Debt 

The most meaningful summary of Obama's most recent (in a long series) speech, which this time was only 14 minutes delayed: the US Deficit increased $112.5 million during the president's latest teleprompted appearance (9m deficit $973 bn ; $108 bn / mo ; $3.6 bn / day ; $150 mm / hr ; $2.5 mm / minute). Since US debt increases at a rate about 30% higher than the actual deficit, the actual new debt incurred was about $146 million. And that's all you need to know about the latest episode in the political tragicomedy charade. 

Congressman Brad Miller Blasts Legality Of Bank Of America's $8.5 Billion RMBS Settlement 

We haven't commented extensively on the recently announced Bank of America $8.5 billion RMBS "non-settlement" settlement because frankly, it is a total travesty, ripe with so many conflicts of interest, it has no chance in hell of being final, and will likely see numerous revisions before it is complete, in the process costing BAC many more billions in legal fees and charge offs. We also expected that it was only a matter of time before politicians swarmed like a flock of crows on this rotting carcass of a deal, which will only make the life of BAC worse (we did share our amazement that BofA's stock rose on the news). Sure enough, here comes the first Congressman to contest that the proposed settlement is not an "arm's length transaction." And while our opinion of politicians is well-known, Miller's conclusion is spot on: "it is important that the American people know that their government is acting on their behalf, not on behalf of powerful financial institutions. It is important that the public and Congress be able to assess whether the enterprises settled claims that would limit taxpayer losses on a tough, arm's length basis, rather than providing another indirect subsidy to the banking industry." Alas, nobody even remotely believes that the government represents anything but the interests of the banks. But a bold effort. One thing is certain: the final BAC settlement, if one even comes to fruition, will not be $8.5 billion. 

Famous Last Words of A FOOL... I call BullShit...

Obama: I Will Refuse to Sign Any Short-Term Deficit Deal

President Obama pushed congressional leaders for the largest possible deficit-reduction deal on Monday, saying he would refuse to consider a short-term stop gap measure.

Brent-WTI Spread Hits New All Time Record, May Double If Citi's Ed Morse Is Right 

Submitted by Tyler Durden on 07/11/2011 12:42 -0400

After last month, many funds got wiped out after the Brent-WTI spread collapsed from about $20 back to $14 in the span of days following the mid-June market swoon, the subsequent unprecedented rally driven purely by the ISM's inventory build up (which was massacred when last week's NFP confirmed aspirations about the end of the soft patch were proven to be simply naive if not outright moronic) has once again sent crude traders, who had now recalibrated their models to expect a spread in the mid-teens, upchucking (and in many cases negotiating margin calls with their prime brokers) after it just hit a fresh all time wide of $22.14, a nearly 100% move in just two weeks. The last time the max pain trade hit it caused such industry titans as John Arnold's Centaurus to gate, and do everything in their power to not lose LPs. What happens after the last two days move, will be seen shortly. Expect another spike in crude (and commodity) vol when the next big player throws in the towel. 

 

 

 

 

 

Guest Post: Does The US Government Want To Prevent You From Leaving? 

In the US, the government now requires all citizens to have a passport in order to pass the border, even when driving into Mexico or Canada. Obtaining a passport, however, is neither free nor guaranteed. You must apply, pay an ever-increasing fee, and wait for weeks to be approved and receive it. Naturally, the privacy statement on the application also acknowledges that the responses can be shared with other departments in the government, including Homeland Security. If this proposal passes, then US citizens will have a nearly insurmountable hurdle to obtain a passport and be able to leave the country at will. Even if it doesn’t pass, it’s a clear demonstration of what the people who run the country are thinking. Have you reached your breaking point yet, comrades? Let me know what you think.

 

 

 

Boehner Response To Obama Imminent 

Submitted by Tyler Durden on 07/11/2011 13:22 -0400

First, it was the president's turn to waste a few hundred million in deficit dollars by doing nothing to help the country (though certainly talk about it). Now it is Boehner's time for a retort. We anticipate, with about 100% certainty, that about $150 million in deficit funding debt will be added for the duration of this latest spectacle. And since, debt is not actually being added per se while the US in breach of the ceiling, this is simply the amount that will be plundered "transitorily" from government pension funds until the debt target is finally lifted. Watch the top GOPer's response live here at 1:30 pm EDT.

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