Alleged Mastermind Behind Israel Bus Explosion Identified As Swedish National Mehdi Ghezali

The latest development in yesterday's Bulgarian bus bomb explosion, is the identification of the alleged bomber. According to Times of Israel he is Mehdi Ghezali, "reportedly a Swedish citizen, with Algerian and Finnish origins. He had been held at the US’s Guantanamo Bay detainment camp on Cuba from 2002 to 2004, having previously studied at a Muslim religious school and mosque in Britain, and traveled to Saudi Arabia, Afghanistan, and Pakistan. He was also reportedly among 12 foreigners captured trying to cross into Afghanistan in 2009."

 

The Stunning Political Reality Of The Fiscal Cliff Debate

In his testimony over the last two days, Bernanke has listed the 'fiscal cliff' as one of the two greatest risks to the US economy, along with the situation in Europe, and urged Congress to enact 'earlier rather than later' a plan that achieves 'short-term and long-term objectives,' with the primary short-term objective to adjust the timing of the near-term fiscal contraction "to allow the recovery a little more space to continue." . However, like us, Goldman believes that resolving the two key issues - the fiscal cliff and the need to raise the debt limit - will be more difficult than it was last year, for three reasons: (1) the "easiest" options to lower the deficit have already been adopted, so the remaining options touch more controversial areas than those enacted last year; (2) some members of both parties have indicated that they regret the agreements reached in 2010 and 2011, implying less willingness to compromise this year, and (3) both parties appear to be contemplating strategies that involve allowing most or all of the policies to change at year end, as a means to achieving their ultimate policy goal. Stunning! Sure enough, as debate on the fiscal cliff gets underway in earnest, the tone of rhetoric has predictably worsened. We suspect the only way they will ever agree is after the market makes it clear that any other path is unacceptable.

Goldman Adjusts Q2 GDP... Again

It's becoming a farce now: if it is a day ending in -y, Goldman has to tweak their Q1 GDP tracking forecast. Sure enough...

The World Is Heading Toward A Major Crisis

Admin at Marc Faber Blog - 1 hour ago

The breaking point could be three, four, five years away. The world is heading toward a major crisis. - *in Smart Money* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.* 

North Las Vegas city leaders declare state of fiscal emergency

Eric De Groot at Eric De Groot - 3 hours ago

Reality check is here and now for many municipalities across America. The division between public and private interests will only widen in the coming years. Market forces, the final arbiter over opinion and personal bias, will generate unexpected outcomes like the one below. Headline: North Las Vegas city leaders declare state of fiscal emergency To the list of the nation's summer... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

More Earthquakes In The Silver Market

Eric De Groot at Eric De Groot - 3 hours ago

I know neither Rule or Sprott, and realize they have a vested interest in talking their book, but their assertion that substantial upside for silver exists once a technical trigger is generated is supported not only by their observations in the physical but also by statistical concentrations in the paper market. The invisible hand is furiously covering its shorts into (D-wave) weakness while... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

P.E.T.A...(people eating tasty animals)

Butchering Smokey

noreply@blogger.com (Patrice Lewis) at Rural Revolution - 10 hours ago

I'll repeat the warning I put up every time we butcher: *DO NOT READ THIS POST* if you are vegetarian or have a squeamish stomach. This post shows pictures of our heifer being butchered. I don't want anyone complaining that they weren't adequately warned about the graphic nature of these photos. Okay? Okay. That said, this morning we butchered our heifer Smokey. Smokey is our herd matron Ruby's calf, and let me tell you she's been a pill from Day One. She's always had a snarky personality (gets it from her mom) and is a clever escape artist to boot. Altogether a pain in the patook... more » 

Chris Hedges: Brace Yourself, the American Empire Is Over

 

 

A Short History of Greek Military Coups.

To understand modern Greece one must understand it’s ancient history and it’s Geography. The Golden era of ancient Greece was rarely Pan Hellenic, with the legendary exception of King Menelaus’ expedition and siege of Troy, the brief cooperation during the war against King Xerxes of Persia, and perhaps Alexander the Great’s domination of what is now Greece, it has predominantly been the glorious histories of city states. And it’s geography is crucial, it has always been thought to stand as the boundary between East and West, whether you consider the ‘East’ to be Persia, the Ottoman Empire, or Communist eastern Europe it is best to understand that Greece’s eastern frontiers have never been an impassable barrier, infact Greece’s porous frontiers have ebbed and flowed with fickle fate and capricious fortune. As a consequence Greece is one of the most polarised nations on the planet.

Oil Spikes As Netanyahu Threatens Iran

The first on-the-record comments, regarding the bombing in Bulgaria, from Israel's Netanyahu are not the most politically correct. His ire with the world's ignorance of Iran's terrorist-fostering position is very clear as are his threats and promises for retribution. Not good. And sure enough, WTI crude is spiking on this news to $91.75 (18% higher than its EU-Summit lows) back to 2-mointh highs. Via Bloomberg,

• *NETANYAHU THANKS BULGARIA FOR AID TO VICTIMS OF TERROR ATTACK
• *ISRAEL'S NETANYAHU SAYS IRAN, HEZBOLLAH CARRY OUT GLOBAL TERROR
• *NETANYAHU SAYS ATTACKS WERE PLANNED IN INDIA, THAILAND
• *NETANYAHU SAYS HEZBOLLAH ACTED AT BEHEST OF IRAN
• *NETANYAHU SAYS TOO DANGEROUS TO LET IRAN HAVE NUCLEAR ARMS
• *NETANYAHU SAYS ISRAEL WILL PURSUE, PUNISH TERRORISTS WITH FORCE
• *NETANYAHU SAYS WORLD MUST RECOGNIZE IRAN AS TERROR THREAT

Meanwhile, as a reminder, a 4th carrier group is on its way to the Gulf...
 

What Housing Recovery? Existing Home Sales Miss By Most In 2 Years

While it seems like everyone 'wants' the housing recovery to be real and organic (and not simply a reflection of limited supply and P.E. investor interest in scraping up the lowest fruit - they have to earn their commish after all), even the NAR couldn't put lipstick on this morning's pig of an existing home sales number. The biggest drop MoM in 16 months and the largest miss to expectations in 24 months is hardly the stuff of a solid foundation for the renaissance of the American Dream. CNBC's Diana Olick speaks the truth on the distressed supply drying up (despite Liesman's efforts to ignore it).

Another Double Digit Negative Philly Fed Print Means Fourth Miss In A Row

Every single economic data point keeps coming worse than expected, and the S&P is just shy of 2012 and probably all time (for those who still care about such things) highs. The Philly Fed just posted its July index print which was as usual abysmal, posting its third negative month in a row, coming in at -12.9, and missing expectations of -8.0 for the fourth month in a row. And while the bulk of index subcomponents were more or less in line, the biggest and most notable change by far was the Number of Employees which tumbled from 1.8 to -8.4. Sadly, which the economic contraction accelerates and print after print is horrible, once again they are not nearly bad enough to usher in New QE any second, even as the market has priced in not only QE 4, but 5, 6, and so on.

Are Postal Workers About To Go Postal On Imminent USPS Benefits Default?

So far the beyond insolvent US Postal Service has been able to avoid outright bankruptcy simply because no major cash outflows were required by the organization. That is about to change in just under two weeks when the USPS is due to make a $5.5 billion payment for retirement accounts. The problem: the USPS does not have the money and needs a bailout. The bigger problem: the USPS needs Congressional action to authorize this latest and so far greatest USPS bailout, however with Congressional recess imminent this won't happen. So are several hundred thousand postal workers about to go postal once they realize that (earmuffs time for all those who love chanting ideological slogans, but have yet to graduate to the abacus) math matters, and every "welfare-funding" entity in the US is ten times broke over? And maybe most importantly: just how will the postal labor union vote in the upcoming election if indeed they suddenly are denied what they had been lied to for years is rightfully theirs?

Spanish Bond Spreads Hit All-Time Record Highs

Despite all the pats on the back from fellow EU political members and reassurances that all will be well with political reforms, 10Y Spanish bond spreads (the additional risk over German bunds that investors demand before lending money to Spain) just hit all-time record highs. At over 580bps, we are now we well above the pre-Euro era highs (remember focus on spread not yield since Bund rates were so different back then - though current yields remain above the 7% Maginot Line of unsustainability). Spain 10Y bond spreads are now 40bps wide of pre-Summit peak levels and 130bps wider than post-Summit kneejerk reaction lows. But look at stocks and we know all is fixed in Europe...

The First Casualty Of Liborgate's Swiss Expansion: "Michael Zrihen No Longer Trading"

In an exclusive report Zero Hedge yesterday presented the connection between the 16 BBA member banks, and something far more sinister: the sleepy, quiet (just as they want it) universe of Swiss hedge funds and private banks. One of our key focuses was on a gentleman named Michael Zrihen. We said: "So allegedly Zrihen, who now works in Geneva (keep a note of this), manipulated Libor at CA, and is now at Lombard Odier - "Geneva's oldest firm of private bankers and one of the largest in Switzerland and Europe." There is no news on whether Zrihen has been let go by Lombard Odier. Yet." We now have news. As of moments ago:

• LOMBARD ODIER SAYS MICHAEL ZRIHEN `NO LONGER TRADING'
• LOMBARD ODIER SAYS ZRIHEN JOINED THE FIRM IN DEC 2010
• LOMBARD ODIER SAYS HAS NO ROLE IN EURIBOR, LIBOR SUBMISSIONS

As a reminder, this is just the tip of the Swiss Liebor rabbit hole. Many more hedge funds will be implicated.

We The Sheeplez... is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.

I'm PayPal Verified

 

Video Footage Of Suspected Israel Bus Suicide Bomber Who Is Caucasian And Had Fake Michigan License

The smoke from the exploded bus carrying Israeli tourists was still billowing and yet Israeli PM Netanyahu had already declared that "Iran is responsible for the terror attack in Bulgaria, we will have a strong response against Iranian terror." Perhaps that statement was a little premature: as footage released by Bulgarian police indicates, the suspected suicide bomber is Caucasian, and was in possession of a Michigan driver's license, supposedly a fake one, but why anyone in Bulgaria would be carrying a fake Michigan ID is just a little confusing.

Huge Miss In Initial Claims Follows Last Week's Seasonally-Driven Beat

So much for last week's shocking beat in Initial Claims, which as a reminder printed at 350K on expectations of 372K, driven by the July 4 holiday and, what we described were "onetime factors such as fewer auto-sector layoffs than normal likely caused the sharp decline." This week the initial claims soared right back to 386K on expectations of a 365K print: so last week's 22K beat was promptly reversed following this week's number- a miss 21K above expectations. And of course, last week's 350K was upward revised to352K. Of note is what we said last week: "the Not Seasonally Adjusted claims number rising by 70K is very much irrelevant." Sure enough, this week the unadjusted number rose even more, by 10.8K to 453K, just 13K below last year's number of 470K. This compares to the 32K difference from a year ago for the seasonally adjusted numbers. That this stinks to high seasonally adjusted heaven needs no observation. Finally, people for whom extended claims expired soared by 84K in one week, as those on EUC 2008 benefit is imploding with each week. Overall, a very ugly number, but not horrible enough yet to send the S&P up 100 on imminent NEW QE.

China Aims To Be "Major Gold Trading Center" With Interbank Gold Trading

China has proposed to broaden trading of precious metals in its local market in order to help China become a "major gold trading centre" (see News). The Wall Street Journal was briefed about China's plans by "a person involved with the matter." The paper reports that "the move could increase liquidity and help Beijing gain stronger pricing power for key commodities like gold". China is the largest consumer and now the largest producer of gold in the world and has aspirations to become a major gold trading center on a par with London and New York. China is also the fifth largest holder of gold reserves in the world after the U.S., Germany, France, Italy. Chinese officials have spoken of China’s aspirations to have gold reserves as large as the U.S. in order to help position the yuan or renminbi as a global reserve currency. Indeed, it would be only natural for China to aspire to have their currency become the global reserve currency in the long term. In the longer term, being a major gold trading center would make China a more powerful financial and economic player and indeed could allow them to influence commodity and other important market prices. Indeed, Reuters reported that becoming a major gold trading center "would boost the country's clout in setting global prices".  

The Reign In Spain May Soon Be Over

Recently two noted Spanish economists were interviewed. One was always an optimist and one was always a pessimist. The optimist droned on and on about how bad things were in Spain, the dire situation with the regional debt, the huge problems overtaking the Spanish banks and the imminent collapse of the Spanish economy. In the end he said that the situation was so bad that the Spanish people were going to have to eat manure. The pessimist was shocked by the comments of his colleague who had never heard him speak in such a manner. When it was the pessimist’s turn to speak he said that he agreed with the optimist with one exception; the manure would soon run out.

Frontrunning: July 19

• U.S drought wilts crops as officials pray for rain (Reuters)
• Obama backs aid for drought farmers (FT)
• Greek leaders identify two-thirds of spending cuts (FT)
• Central bankers eyeing whether Libor needs scrapping (Reuters)
• Markets Face a Life Sentence of Hard Libor (WSJ)
• World Bank chief warns no region immune to Europe crisis (Reuters)
• China big four banks' new loans double in early July (Reuters)
• Nokia Loss Widens as Smartphone Sales Slump (WSJ)
• Bundesbank Expected To Buy Australian Dollars In 3Q (WSJ)

 

Morgan Stanley With Huge Q2 Miss, Posts Abysmal Results

Morgan Stanley reported earnings this morning, and showed that unless one has massive loan loss reserves to release, US banks are in big trouble. The firm just reported $0.28 EPS including DVA benefit, on expectations of $0.29. But it was the top line that got blown out, with the firm reporting $7.0 billion in revenue including the DVA fudge, but more importantly $6.6 billion. The expectations was for a $7.58 billion top line: a 14% miss. The top line number plunged over 25% compared to a year ago. The main reason for the collapse in profit: the virtual disappearance of any cash from combined fixed income, commodity and equity sales and trading, which imploded from $3.7 billion a year ago, to just $1.9 billion this quarter. And while the company slashed comp in Q2 as was to be expected following such horrible results, by over 33% to $1.4 billion from $2.2 billion, here is what most are focused on: "As a result of a rating agency downgrade of the Firm's long-term credit rating in June, the amount of additional collateral requirements or other payments that could be called by counterparties, exchanges or clearing organizations under the terms of certain OTC trading agreements and certain other agreements was approximately $6.3 billion, of which $2.9 billion was called and posted at June 30, 2012." In other words, the company has yet to post more than half of its contractually required collateral. In the aftermath of these atrocious earnings, we wish them all the best in getting access to this cash.

Blast From The "Devil's Advocate" Past: Barclays On Libor Manipulation

In retrospect, this may be one of the funnier "research" notes to have come out of Barlcays in the past 5 years.

Spanish 10 Year Yield Back Over 7% Following Ugly Bond Auction

Instead of sticking to selling short-term, LTRO covered debt, Spain was so desperate to show it has capital markets access that this morning it tried selling bond due 2014, 2017 and 2019 with a maximum issuance target of €3 billion. It failed to not only meet the target, but to price the €1.074 billion in bonds due 2017 at anything less than an all time high (6.459%) as a result sending the entire curve blowing out wider, and the 10 Year above the critical 7% threshold again, for the first time since the June Euro summit, whose only function was to give a positive return for the fiscal year to such US pension funds as Calpers and New Year. In summary:  Spain sold 2.98 billion euros of short- to medium-term government bonds on Thursday in a sale at which borrowing costs rose and demand fell. The average yield at a sale of 1.07 billion euros of five-year bonds rose to 6.46 percent compared with 6.07 percent at the previous auction of the debt last month. Investors' bids were worth 2.1 times the amount offered for the five-year paper versus 3.4 times at the last auction, and 2.9 times for the seven-year bond. The average yield at the seven-year sale rose to 6.7 percent from 4.83 percent.






Today’s Items:

First…
When Safe Havens Become Bubbles
http://www.cnbc.com

Safe haven is a lovely term indicating that an asset class, bank or company is rock solid, reliable and dependable.   For centuries, Switzerland was seen as a safe haven.   But today, money is rushing into Denmark.   The only problem with this safe haven and others today, is that this money rushing in has nothing tangible backing it up; thus, when it collapses, it will affect everyone in those safe havens.

Next…
Banks Are Agents Of The State
http://kingworldnews.com
http://www.forbes.com

According to John Hathaway, gold should be trading well above $2,500; however, there is tremendous corruption in the banking system, from LIBOR to HSBC’s drug money laundering.   The powers that be do not want see gold going to $2,500.   Because of Asian rock solid demand, gold has frustrated those who want gold to go below $1500.   In short, have patience and wait out this paper storm because the current price is a slight of hand illusion.

Next…
11 Nails in the Coffin of the Petrodollar
http://theeconomiccollapseblog.com

Here are a few of those international agreements…
1. China and Russia
2. China and Brazil
3. China and Australia
4. China and Japan
5. China and Iran
6. China and Africa
See a pattern developing folks?

Next…
Assassination Attempt of Hillary Clinton in Israel
http://www.beaconequity.com

After having tomatoes and shoes thrown at her motorcade in Egypt, someone tried to assassinate Hillary Clinton.   Either that, or someone decided, at an opportune moment, to simply throw out a bucket of water.

Next…
Definitely Fraudulent
http://news.yahoo.com
http://www.whitehouse.gov

Investigators for Arizona sheriff Arpaio’s posse have declared the obvious…   That Obama’s birth certificate is definitely fraudulent.   Of course, this is a step up from the March statement that it was computer generated.   The new information points out that the handwritten codes in boxes, specifically the 9′s, which indicate that the information for those boxes were not available; however, they are filled out in the copy.   Can Obama say identity theft?

Next…
UBS Issues Hyperinflation Warning
http://www.zerohedge.com

UBS has put out a report that there is some risk that hyperinflation could arise in one or more large currencies.  These countries are the top deficit countries and face a very serious possibility of hyperinflation…   Unless we have a war.    The U.S., Japan, the UK, France, Spain and India all top the countries that could see hyperinflation.

Next…
Very Real Danger of Collapse
http://www.shtfplan.com

Credit expansion is the most important factor responsible for the last few decades of expansion. In the process, many nations around the world have run up a horrifying debt to unprecedented levels.   In 2007, cracks in this expansion began to occur and now we are seeing the accelerated collapse.   This means the loss of, not only material wealth, but the underlying social infrastructure of modern civilization.   Are you ready.

Finally, please prepare now for the escalating economic and social unrest.   Good Day!

We The Sheeplez... is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.

I'm PayPal Verified