Submitted by Tyler Durden on 09/21/2015 - 07:50 When The Fed's own cheerleader-in-chief (see October 2014) slams you for cheerleading, you know it's gone too far. In a stunning 30 second clip on CNBC this morning, St.Louis Fed head Jim Bullard sent a message to "your friend Cramer", saying "The Fed cannot permanently raise stock prices," adding, rather astonishingly to the anchors, "to have [Cramer] cheerleading for lower rates 24 hours a day is unsavory."
Foucault Does FOMC: Deutsche Bank Explains The Fed's Decision By Mixing Quantum Theory With Post-ModernismSubmitted by Tyler Durden on 09/21/2015 - 09:05 "The market is now observing itself from another angle as an observer of the observer of the observers."
Submitted by Tyler Durden on 09/21/2015 - 08:49 Having no cost to money is the economic equivalent of no intelligent laws in society. The equivalent of using our money but having a baseline of zero for the benefit produced with that money. The results are what you would expect, the wild west, One might say, Financial Anarchy.
from The Wealth Watchman:
As Greece concludes its meaningless elections, and sends the same powerless “yes-men” back to Athens to rubber stamp whatever schemes of dispossession that Dijsselbloem has crafted for the Greek people, the rest of the world continues to cast the only vote that matters! For since June, the already high levels of gold and silver purchases have not only continued, but have soared, both in Western retail demand, and in the far East.
Many of those Eastern powers have also escalated the pace at which they’ve bid their US treasury holdings adieu! It’s one thing however, just to say that the world is now leaving treasuries behind, it’s quite another to show it, as this chart so powerfully does…
Submitted by Tyler Durden on 09/21/2015 - 08:30 In the week following the Fed's admission it is not only market-driven but now has a 4th mandate, which is to respond to China's hard landing on a day-to-day basis, US macro events mecrifully slow down to give everyone a chance to digest what the Fed just did. Here are the highlights.
Submitted by Tyler Durden on 09/21/2015 - 08:14 "In such a downside scenario there could be pressure on the central bank to provide about 10-12% of GDP in reserves to the market to offset outflows as well as hedging demand (which could be met by intervening in forward markets). This is roughly USD1.0-1.2trn – that would be about 30% of its current reserve portfolio."
Bill Holter says, “All that’s left is a reset,” and the Fed is now helpless to stop the coming global financial calamity. This is not going to just be a financial problem, but a problem getting things you need to live. Holter says, “These big stores get stocked up every single night.”
“The average store only has food for about two or three days. So, this is not going to just be an issue about you paying your bills. It’s going to break down so badly it is going to be an issue about whether or not you can get food.”
On gold and silver, is this the bottom? Holter says, “To answer your question, yes, I think this is the bottom. Can they push the price down again? It’s possible, but like you say back in 2009, silver on the COMEX was trading just under $9, and to buy retail metal, you could not get anything under $15. . . . The physical market has hit a hard bottom.”
Submitted by Tyler Durden on 09/21/2015 - 07:31
- Fed is out so...BOJ brainstorms stimulus overhaul as options dwindle (Reuters)
- And... Yellen Pause Ups Pressure on Draghi as Global Pessimism Mounts (BBG)
- But... Eurozone Nears Limits of What Monetary Policy Can Do (WSJ)
- Global shares struggle on global growth concerns (Reuters)
- VW's Emissions Cheating Found by Curious Clean-Air Group (BBG)
- David Cameron allegedly fucked a dead pig's head (Mirror)
Submitted by Tyler Durden on 09/21/2015 - 06:55 After sliding early in Sunday pre-market trade, overnight US equity futures managed to rebound on the now traditional low-volume levitation from a low of 1938 to just over 1950 at last check, ignoring the biggest single-name blowup story this morning which is the 23% collapse in Volkswagen shares, and instead have piggybacked on what we said was the last Hail Mary for the market: the hope of more QE from either the ECB or the BOJ. Tonight, it was the latter and while Japan's market are closed until Thursday for public holidays, its currency which is the world's preferred carry trade and the primary driver alongside VIX manipulation of the S&P500, has jumped from a low of just over 119 on Friday morning to a high of 120.4, pushing the entire US stock market with it.
Submitted by Tyler Durden on 09/20/2015 - 23:29 While the rest of the levered-beta 2 and 20 chasers formerly known as "hedge funds" recently accused risk parity of blowing up their August returns (September is not shaping up much better) the biggest risk-parity fund in the world also found a scapegoat: the global economy, which according to Dalio, is the reason for All Weather's dramatic August slump. Bridgewater's message is simple: absent far more easing, what the charts above signal is that the US economy is about to slam head-on into an economic recession.
Submitted by Tyler Durden on 09/20/2015 - 22:35 As of today you really can pay your taxes, your credit cards, your mortgage, shop at Costco, and buy your groceries without so much as a bank account while using sound money.
The Obama Administration wants Congress to vote on the Iran nuclear agreement, but is refusing to answer questions about Iran’s past history of killing Americans and Israelis.
Sen. Marco Rubio, R-Fla., asked Secretary of State John Kerry questions regarding how many Americans and Israelis have been killed by Iran forces since the country’s 1979 revolution, but has yet to receive a concrete answer. Rubio asked the question, in various forms, on three occasions and received written replies that danced around the issue.
The Pentagon is reportedly reviewing and updating its contingency plans for a war with Russia for the first time since the collapse of the Soviet Union, with a defense official telling US media that Russia’s “actions” prompted the assessment.
“Given the security environment, given the actions of Russia, it has become apparent that we need to make sure to update the plans that we have in response to any potential aggression against any NATO allies,” a senior defense official familiar with the plan told Foreign Policy.
According to Michèle Flournoy, a former undersecretary of defense for policy and co-founder of the Center for a New American Security, the move was prompted by the Ukraine situation.
In Spain’s north eastern region of Catalonia, the fear-mongering and doom-saying is reaching a deafening crescendo. If voters return a majority of pro-independence politicians in next Sunday’s regional elections, all manner of economic disaster will befall the region — according to the defenders of Spain’s established political and economic order.
The doomsayers include the Spanish government, the main opposition party, PSOE, Angela Merkel, David Cameron, Barack Obama, John Kerry, the spokesperson of the president of the European Commission, Margaritis Schinas, and just about every business lobby representative in Spain. Some Catalan business leaders have even urged their employees to vote against independence, warning that a yes-vote on Sunday could lead to them losing their jobs — a major threat in a nation with over 20% official unemployment!
A new article reported that 3,500 Uyghurs are settling in a village near Jisr-al Shagour that was just taken from Assad, close to the stronghold of Turkistan Islamic Party (TIP) that is in the Turkey-backed Army of Conquest. They are allegedly under the supervision of Turkish intelligence that has been accused of supplying fake passports to recruit Chinese Uyghurs to wage jihad in Syria.
from Northman Trader:
When the Fed embarked on its mission to rescue the economy in 2009 it did so on the following premise: Save the banks by re-inflating the housing and stock markets via easy money and, as a result, companies would hire and the eventual scarcity of labor would produce wage growth with the end result that the resulting inflation would permit for a tightening cycle to normalize rates.
The problem: After 7 years and trillions of dollars in debt and balance sheet expansion there is no inflation nor is there any wage growth. And the reason for this is a structural one that central banks have been refusing to acknowledge and admit: The massive underlying shift in technology that is radically changing the global labor market. Not for the better, but for the worse.
The Money GPS:
by Anand Giridharadas, NY Times:
A former C.I.A. officer with experience in Turkey wrote a provocative essay this summer about the “deep state.” The phrase refers to a parallel “secret government” embedded in the military and intelligence services, whose purpose is to provide a check on electoral democracy.
Tim Young of SelfSeficientMan.com joins me today to talk about how he broke free from dependency on a failing system and forged a new path. He provides some valuable tips on prepping and self-sufficiency.
September 18 – Reuters: “The world’s leading central banks are facing the risk that their massive efforts to revive economic growth could be dragged down again, with some officials arguing for bold new ideas to counter the threat of slow growth for years to come. A day after the U.S. Federal Reserve kept interest rates at zero, citing risks in the global economy, the Bank of England’s chief economist said central banks had to accept that interest rates might get stuck at rock bottom. In Japan, where interest rates have been at zero for more than 20 years, policymakers are already tossing around ideas for overhauling the Bank of Japan’s huge monetary stimulus program as they worry that it will be unsustainable in the future, according to sources familiar with its thinking. Separately a top European Central Bank official said the ECB’s bond-buying program might need to be rethought if low inflation becomes entrenched.”
Most just scoff at the notion that there has been a historic global Bubble, let alone that this Bubble has over recent months begun to burst. Talk of an EM and global crisis is viewed as wackoism. Except that the Federal Reserve clearly sees something pernicious in the world that requires shelving, after seven years, even the cutest little baby step move in the direction of policy normalization.
chart: Fed Balance Sheet, via MyBudget360.com
This video has been blocked and removed twice….. Sorry For the inconvenience.
by Andrew Emett, Activist Post:
After purchasing the rights to a drug that prevents infections in people with weakened immune systems, including AIDS patients and cancer survivors undergoing chemotherapy, a pharmaceutical company has raised the price of the drug by 5,000%. Instead of paying $13.50 per pill, patients with life-threatening illnesses are now forced to pay $750 per pill.
Led by a former hedge fund manager, Turing Pharmaceuticals was founded by Martin Shkreli after his first startup biotech company, Retrophin, ousted him last year amid accusations of stock impropriety. Shortly after founding Turing Pharmaceuticals, Shkreli secured the exclusive rights to sell Daraprim (pyrimethamine), which helps prevent malaria and treats toxoplasmosis.
The cuckservative world is agape, and the liberals are running screaming — and scared — today.
Donald J. Trump on the Right to Keep and Bear Arms
The Second Amendment to our Constitution is clear. The right of the people to keep and bear Arms shall not be infringed upon. Period.
Let me begin: While Mr. Trump’s position is miles ahead of many others in the political sphere, he could have stopped right here when it comes to the law — after all, The Second Amendment is clear.