Belarus Hikes Refinancing Rate From 22% to 27% To Combat Hyperinflation

Belarus, which recently has been fighting hyperinflation after devaluing its currency by over half, just hiked its central refinancing rate by 5%, from 22% to 27%. We look forward to Comcast's clown channel to pitch Belarussian equities next as the local stock market is poised to outperform every single stock market in the world, complete domestic currency devaluation aside. NB: This is what hyperinflation looks like.

Minneapolis Fed's Kocherlakota Down, Two Dissenters To Go Until QE3

During the last FOMC meeting, we learned that the number of dissenting hawks at the Fed has increased to a whopping 3. Well, make that 2 after Minneapolis Fed's Kocherlakota just basically stuck his tail between his legs. To wit: "the disinflationary pressures of 2010 should soon reappear in the form of a sharp decline in current and expected core PCE inflation rates. In that eventuality, increasing policy accommodation might well be appropriate." One dissenter down, two to go. This also means that as we have been saying forever, all that would take for QE3 is another "deflationary" market flush: not a low-volume algo driven levitation, not a sideways move, a plunge. And when that happens, the Fed will do QE3. The rest is just posturing.





QE 3 Ain’t Coming Unless One of These Two Items Happen

Posted by: Phoenix Capital...

Post date: 08/30/2011 - 11:18

Do you really think the Fed hasn’t already discussed QE 3 and every other insane intervention you can imagine over since the Financial Crisis began in 2008? Do youreally think that the Fed’s... 

 

 

 

 

 

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Government investment disaster in the works??

Posted by : Bruce Krasting

Post date: 08/30/2011 - 11:41

This one stinks. I think it rises to the surface soon.

The Gold Stock Train Ready To Pick Up Speed Again

Eric De Groot at Eric De Groot - 20 minutes ago

Confidence and resolve in the future potential of the gold stocks is comparable to that of a new weight watchers client ‘walking’ a junk food convention for exercise. The Street doesn’t call it climbing a wall of worry for nothing. The train has left the station and will soon pick up speed once the grade declines. The number of passengers on the train have declined into the first consolidation... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

 

 

 

 

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Euro bail-out in doubt as 'hysteria' sweeps Germany

Eric De Groot at Eric De Groot - 2 hours ago

A financial shock wave, originating in Europe, is heading for the United States. It's only a matter of time. This is why bond shorts, while correct, cannot be early. Headline: Euro bail-out in doubt as 'hysteria' sweeps Germany Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country's constitutional... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

Israel Sends Two More Warships To Egyptian Border To Preempt Expected Militant Attack

While it is unclear if geopolitical news, or expectations of imminent QE3 is what just drove WTI to $89, the update from AP that Israel has sent two warships to the border with Egypt will likely not help the oil deflation case. From the AP: "The Israeli military says it has sent two more warships to the Red Sea border with Egypt following warnings that militants are planning another attack on southern Israel from Egyptian soil. Earlier this week, Israel's military ordered more troops to the border following intelligence reports of an impending attack. Israel's home front minister said Tuesday that militants from the Gaza-based Islamic Jihad are in Egypt's Sinai peninsula waiting to attack. Gunmen who infiltrated Israel through the porous Egyptian Sinai border killed eight Israelis earlier this month. The attack sparked calls to increase security on both sides of the frontier and created new tensions between Israel and Egypt. No changes in security alignments were observed on the Egyptian side of the border." And as the market now gyrates violently without any clear idea what to do until Thursday's ISM and Friday's NFP either seal the deal for QE3 or not, expect geopolitical headline risk to return with a vengeance.

Uncle Warren Unhappy With WSJ Claims He Pays Only 10.5% Tax On BofA Dividend; He Really Is Paying A Whopping 14.175%

Kindly-looking, ukulele strumming, no tax paying, birthday celebrating, grandfather figure Warrenn Buffett is angry...

Guest Post: The Limits Of Engineering

The entire premise of the engineering mindset is that problems can be broken down to a small set of quantifiable inputs, processes and outputs. This works fine when measuring and controlling water flow, flow of electrons, and other linear systems, but it is catastrophically mis-applied when Know-It-Alls besotted by their success in extremely limited linear systems attempt to "solve" non-linear problem-sets with linear "solutions." Case in point: war is highly non-linear. The "Whiz Kids" at the Pentagon did not even understand the problem-set, or the nature of war; how could their simplistic, Know-It-All "solutions" possibly work in the real world? Most of our problem-sets are non-linear, and are thus inaccessible to engineered solutions. If we consider the stock market a problem-set, then shouldn't it be possible to engineer 11 good trades in a row? After all, the data is all there for the taking. If a whiz kid could engineer 11 trades that doubled the capital invested--not that impossible when trading futures contracts or options--then in 11 iterations a mere $500 blossoms into $1 million. So go ahead and engineer a "solution" to the stock market "problem" which yields 11 good trades in a row. The problem is that the market--and most of life--is non-linear, and "solutions" cannot be conjured out of simplistic linear models and inputs which cannot be quantified except with a highly illusory accuracy.

Guest Post: The Best Way To Stay Out Of Student Loan Debt And Boost Your Resume

Despite the mind-numbing mantra we constantly hear from our political leaders and central bankers that inflation does not exist, there are certain parts of our lives where even a freeze-dried coffee bean can see that prices are clearly rising: At the grocery store. At the doctor’s office. At the gas pump. One of these places is also our hallowed institutions of higher learning. It’s no secret that the cost of university education, especially in the United States, is staggering. Tuition at private schools in the US averages $30,000 annually, and students often graduate over $50,000 in debt. This leads to a fancy form of indentured servitude; students with this kind of debt load are forced to take the first paid work they can find, and they’ll work for the next 14-years of their life just to start back at zero.

RANsquawk US Afternoon Briefing - Stocks, Bonds, FX etc. – 30/08/11

Submitted by RANSquawk Video on 08/30/2011 - 12:50 ETC RANSquawk A snapshot of the US Afternoon Briefing covering Stocks, Bonds, FX, etc.
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