We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Fed Preparing For US Default Says Plosser

That giant whooshing, and humming, sound you hear are all the printers at the basement of Marriner Eccles getting refills and start the warm up process. Because according to the Fed Charles Plosser the Federal Reserve is actively preparing for the possibility that the United States could default. Which can only mean one thing: an immediate paradrop of millions of $100 bricks to every man woman and child in the US since as we all know by know Tim Geithner has repeatedly confirmed the Treasury has absolutely no default plans. None.

Banking Cartel Got Stuffed Today.

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 6 minutes ago

Good evening Ladies and Gentlemen: I hope you took my advice and took a couple of aspirins last night and then today not look at the financial TV boob tube (CNBC). On Saturday, the COT reported a huge increase in commercial shorts. Yesterday, the open interest reported in gold, came at a monstrously high 542,950 which forced the bankers to raid and the raid was intense. The problem the

Paul Ryan Responds To "Gang Of Six" "Bipartisan" "Deficit-Cutting" "Plan"

When we presented the Gang of Six joke of a deficit-cutting "plan" we called it a "talking point bulletin full of ridiculous fluff with nothing substantial." It appears that at least Paul Ryan seems to agree: "The plan is not a budget. It is a set of talking points and graphs that outlines an ambitious proposal that has serious flaws but also the potential for worthwhile budget and tax reforms." The Wisconsin Congressman has just released a much needed follow up to the 4 page chart book (disclosed previously here), which confirms that the "Compromise" plan is DOA in the Congress.... 48 hours away from D-Day: "The following analysis examines these problems, raises questions about the lack of detail in the plan, and notes the areas where there is potential to make progress on spending restraint and tax reform."

Bipartisan Plan Summary Charts Confirm Key Deficit "Cuts" Come From Imminent Social Security Pillage

For those who are about to get cerebral hemorrhage trying to figure out the ensuing math, don't worry: it is all based on Marx to Myth.

Summarizing The Challenges Facing The "Global Central Bank"

Morgan Stanley, traditionally the second most Kool-aidy bank on Wall Street, just after Deutsche Bank (and specifically the Germans' head economist) begins its latest report on the challenges facing the "global central bank" on a rather downbeat note: "Slowing growth is threatening the creditless, jobless recovery in the US and the Fed stands ready to act. The European flu has flared up and the risks to the ECB’s strategy of normalising policy have risen markedly. And emerging market central banks are balancing domestic growth against downside risks to developed market economies as they keep policy from becoming restrictive or even tightening too quickly. The world today appears to be in an eerily similar place to mid-2010." Hmm, where have we heard this 2011=2010 theme before... Anyway, it gets worse: "there are some important differences too. This time, the US and euro area economies are facing downside risks to growth just as normalising monetary policy is slowing EM economies down too. A year ago, EM monetary policy was still stimulative and domestic demand growth was encouraged as output gaps were still negative. The risks to global growth today are thus broader now than they were last year. At the same time, the thresholds for central banks to ease appear to be higher this year too. Rising core inflation in the US, elevated inflation in the euro area and a recent battle with inflation in the EM world all make it difficult for central banks to abruptly reverse the direction of policy. A look at the challenges facing DM and EM central banks has the Fed, the ECB and the RBA facing the biggest downside risks to growth in the DM world while the ECB (again), the BoE and the Riksbank face immediate inflation concerns. In the EM world, central bankers have no time to rest despite a recent victorious battle with that old enemy, inflation. European contagion and weaker global growth should keep policy-makers there on their toes for the next few months." Indeed it should, but with so many central bank actors, each of which experiencing their own set of unique challenges, who can keep track of all the often times opposing responses that the central planners are presented with? Well, courtesy of this handy, dandy tearsheet from MS, now you can too.

ES-RISK Spread Compression Unwind Threshold Reached

No point in getting too greedy: after the latest spread compression opportunity was presented courtesy of yesterday's late afternoon ramp on speculation of a debt deal, breaking the ES-RISK correlation, and taking it to a 12 point spread, it has since contracted to a nearly negligible 4 points as of last check. The only thing better than free money from a 100% spread closure is 66% spread closure.At $50 per ES contract pt (coupled with a comparable DV01 match on the synthetic RISK side) this is $450 profit (on only ~$5k margin), or around 9% return in one day. We'll take it. Spread entry/exit points provided as usual by Capital Context.

Euro Jumps On News Of Latest Agreement Between Germans And French As Market Prices In Nth Greek Bailout

The EURUSD is pushing higher in the low volume afterhours session after a Reuter report that the German and French delegations have reached an agreement over Greece. Since this is about the 6th "pricing in" of Greek bailout, we can't help but be extremely skeptical that this short-lived bounce will promptly reverse especially since the USD is about to pop on comparable good news to come out from the Obama meeting with Boehner.

Sellers Dig In Yesterday – Buyers Dig In Today

July 20, 2011, at 3:06 pm
by Dan Norcini in the category Trader Dan Norcini |

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Dear CIGAs,

Quite a battle royale is being waged at the current time in the gold market. The bullion banks are digging in at and above the $1600 level while buyers are digging in just above the $1580 level where a new support level is emerging. The victory will be to whichever side refuses to blink. Open interest readings are at relatively high levels so the stakes are serious.
Yesterday we had a bearish outside reversal pattern form on the short term charts that I employ; today we had a bullish thrusting pattern on that same chart. Bulls regained the broken short term support level near $1595 that had failed yesterday but did not manage to recapture the $1600 level for any significant length of time. They will need to clear and HOLD that level to set up a challenge of the bullion bank capping level at $1610.
The new support level formed just above the $1580. This level now takes on a new significance and will need to hold on any subsequent retreat in price to prevent any further long liquidation on the part of the shorter term oriented traders.

For the time being, the bears still retain a slight advantage because of the inability of the bulls to hold $1600. Based on what I can see of the open interest readings, a fairly large contingent of brand new short sellers has formed. Some of them will be squeezed out if $1610 gives way as they are counting on that bearish outside reversal pattern to hold.
There are still plenty of cross currents at work in these markets which has kept just enough uncertainty in the minds of traders to keep most on pins and needles and ready to react very quickly to sudden changes in price. I might add what I said yesterday, the modus operandi is to react first and think later. We saw some of that in the long bond today. Yesterday I marvelled at the apparent "counterintuitive" 1 1/2 point rally based merely on a statement from the President that some progress was being made in the US debt limit negotiations. Traders today did have time to think about this overnight and took back a full point from the best levels of yesterday. Bonds are back to a holding pattern now as traders gauge the next direction for interest rates but most seem to agree with my assessment from yesterday that the sharp move higher was unwarranted.
Click here to read the full article on Trader Dan Norcini’s blog…