Wednesday, September 2, 2015

Bill Gross: "Go To Cash"

The global economy’s finance based spine is so out of whack that it is in need of a major readjustment. Cash or better yet “near cash” such as 1-2 year corporate bonds are my best idea of appropriate risks/reward investments. The reward is not much, but as Will Rogers once said during the Great Depression – “I’m not so much concerned about the return on my money as the return of my money.”

European Integration In Jeopardy: Italy "Willing To Temporarily Suspend Schengen" In Response To Refugee Crisis

Europe's refugee crisis just took a dramatic turn for the worse, and strikes at the very hear of Europe's Shengen customs union which has allowed borderless travel within Europe for decades. As Bloomberg reports, the Italian Province of Bolzano in Northern Italy said in a statement that it agreed with the Italian government on request by German Federal State of Bavaria by "communicating a willingness to restore border controls at Brenner and temporarily suspend the Schengen agreement."

China’s Selling U.S. Debt: Safety Valve or Cause For Concern?

[Ed. Note: Yep, we are actually posting an article from mockingbird outlet CBS News. Why? Because even the mainstream media is concerned about China’s liquidation of US Treasuries. “Cause for concern?” the writer asks. Yeah, just a little!]
by Robert Hennely, CBS News:
Bloomberg News reports that China is selling billions of dollars of its massive inventory of U.S. Treasuries to raise dollars to buy back and stabilize the country’s own currency. The move comes amid a sharp decline in Chinese stocks in recent months and rising concerns about China’s slowing economic growth.
For years, China’s appetite for Treasuries has helped the U.S. government cover its bills. Recently, for example, that helped fund the nearly $1 trillion recovery plan Congress implemented after the 2008 financial crisis. For its part, China uses that debt to anchor its own balance sheet and to insulate itself from global economic shocks.
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What Declining Global Reserves Mean For Bond Yields: Goldman's Take

As Deutsche Bank put it on Tuesday, we've officially reached the end of the "Great Accumulation" as slumping Chinese growth, plunging crude, and an imminent Fed hike have put enormous pressure on emerging economies’ accumulated stash of FX reserves and that means that buyers of USD assets are becoming sellers at the expense of global liquidity and the perpetual bid for some core paper. Now, Goldman has weighed in, noting that the rise in foreign FX reserves held by non-G-7 countries that started around 2003-04 (at around US$1trn) appears to have ended for good.

September 2015 Sure Started Off With Quite A Bang, Eh?

by Michael Snyder, The Economic Collapse Blog:
After enduring their worst August in 17 years, U.S. stocks are off to their worst start to a September in 13 years.  Just yesterday, I declared that we would be entering the “danger zone” this month, and it didn’t take long for the action to begin.  Historically, this month is the worst month of the year for stocks, and most of the biggest stock market crashes throughout our history have come in the fall.  On Tuesday, the Dow plunged another 469 points, and it is now down more than 10 percent from the peak of the market back in May.  That means that we have officially entered “correction” territory.  Asian stocks also crashed hard on Tuesday, so did European stocks, and the price of oil plummeted about 8 percent.  For a long time, there have been a lot of people out there that have been warning that a financial crisis would happen in the second half of 2015, and they are being proven right.  It is actually happening.
Read More…

Gartman Does it Again: Stocks Set To Surge As Newsletter Bulls Hit 6 Year Low

If there is one thing more or less guaranteed to create a bullish scenario for stocks, it is the sudden flip-flop of world-renowned newsletter writer Dennis Gartman once again to a short-of-stocks position. Worse still, his fellow newsletter writers, according to AAII, have not been this 'unbullish' since the trough in March 2009. Of course, what many are missing this morning isd 120 points of The Dow's gains are due to the panic-intervention by The BoJ at last night's Japan open...

Wage Growth Meme Destroyed - Unit Labor Costs Tumble At Fastest Pace In A Year

Unit Labor Costs dropped 1.4% in Q2, missing expectations of a 1.2% drop and falling to the lowest since Q2 2014. Despite all the sound and fury and wage growth looming any minute now... it is not! This is the first consecutive drop in unit labor costs since Q4 2008.

ADP Misses Again, Drops YoY For 7th Month In A Row

Following its disapppointing tumble in July (having missed expectations for 6 of the last 7 months), August ADP printed another miss at 190k against expectations of a 200k rise with last month revised lower. As the energy sectyoir continues to bleed jobs at a rate of 10k per month, ADP's Zandi notes that manufacturing jobs growth is all auto-related (which is extremely worryinmg given the size of inventories). Job groiwth was largely driven by small businesses (85k) as opposed to large business (40k) with Service-producing goods drastically outpacing manufacturing job growth (173k to 17k).

"The Biggest Problems We Face Is That We’re All Flying Blind To A Large Degree" Warns Deutsche Bank

"One of the biggest problems we face is that there is no historical template for current global market conditions so we’re all flying blind to a large degree. Never before have so many of the most important countries in the world printed so much money and left base rates at near zero for so long. Also never before has the largest economy in the world tried to start a slow process of reversing said extraordinary policy. So there is no road map for this journey, only educated (hopefully) predictions."

RANSQUAWK PREVIEW VIDEO: ECB September'15 Rate Decision: The ECB are expected to leave all three rates unchanged, with focus turning to...

  • All surveyed analysts expect the ECB to keep their three key interest rates unchanged
  • A number of analysts have suggested that inflation rhetoric could be downbeat and further QE is a possibility later this year, as such any potential indication to this by Draghi is likely to take centre stage at the press conference
  • The central bank are said to be concerned by inflation expectations, with low energy prices and recent EUR strength raising concerns about the central bank’s mandated 2% inflation target


China Stocks Fail To Close Green Ahead Of National Holiday Despite Constant Intervention, US Futures Rebound

Since today was the last day of trading for Chinese stocks this week ahead of the 4-day extended September 3 military parade holiday to mark the 70th anniversary of the allied victory over Japan, and since Chinese stocks opened to yet another early trading rout coupled with the PBOC's biggest Yuan strengthening since 2010 as we observed earlier, there was only one thing that was certain: massive intervention by the Chinese "National Team" to get stocks as close to green as possible. Sure enough they tried, and tried so hard the "hulk's" green color almost came through in the last hour of trading and yet, despite the symbolic importance of having a green close at least one day this week ahead of China's victory over a World War II foe, Beijing was unable to defeat the market even once in the latest week which will hardly bode well for Chinese stocks come next week.

Sheep Led To The Slaughter: The Muzzling Of Free Speech In America

“If the freedom of speech be taken away, then dumb and silent we may be led, like sheep to the slaughter.” - George Washington

The Market's "Other" Panic Indicator Just Went Off The Charts

With indicators from macro-fundamentals (e.g. retail sales, core capex, inventory-to-sales) to market-oriented measures (VIX levels and backwardation, HY credit spreads, commodity prices) all flashing various colors of dead canary in the coal-mine red, we thought today's colossal spike in the Arms (TRIN) Index was a notable addition.

The Myth Of A Russian 'Threat'

Not a week goes by without the Pentagon carping about an ominous Russian "threat". The Pentagon’s rhetorical games also serve to mask a real high-stakes process; essentially an energy war – centering on the control of oil, natural gas and mineral resources of Russia and Central Asia. Will this wealth be controlled by oligarch frontmen “supervised” by their masters in New York and London, or by Russia and its Central Asian partners? Thus the relentless propaganda war.

Is The Stock Market Now "Too Big to Fail"?

By turning the health of the economy into a reflection of the stock market, the Status Quo has made the stock market into the one bellwether that matters. In effect, the stock market is now integral to the economy as a measure of sentiment and evidence that all is well with the economy as a whole.

filed under (unt

Clinton emails contained spy satellite data on North Korean nukes

from Washington Times:
COne of the most serious potential breaches of national security identified so far by the intelligence community inside Hillary Rodham Clinton’s private emails involves the relaying of classified information concerning the movement of North Korean nuclear assets, which was obtained from spy satellites.
Multiple intelligence sources who spoke to The Washington Times, solely on the condition of anonymity, said concerns about the movement of the North Korean information through Mrs. Clinton’s unsecured server are twofold.
First, spy satellite information is frequently classified at the top-secret level and handled within a special compartment called Talent-Keyhole. This means it is one of the most sensitive forms of intelligence gathered by the U.S.
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Macau’s Economy Blows Up

from Wolf Street:
China’s crackdown on corruption, or at least the ostentatious display of the spoils of corruption, and its selective hunt for corrupt officials, which to some observers resembles a political purge, may or may not tamp down on actual corruption, which is what greases the wheels in the Chinese economy. But it’s certainly doing a number on Macau.
Macau is the only place in China where Chinese can legally gamble away their wealth without having to resort to the stock market or other schemes. It’s also a convenient place where they can circumvent China’s currency controls to siphon money out of China and send it to “safe havens,” such as over-priced homes in the most expensive trophy cities in the US near the peak of US Housing Bubble 2.
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Ron Paul – The War On Cash


As Economy Collapses, DHS Draws Up Plans To Deal With “Cyber Pearl Harbor”

Putin prepares to back Assad in Syria and oppose the US, its ISIS proxy army and the Bankers.
from X22 Report:


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