Monday, October 19, 2015

Facing Dire Financial Straits, Saudi Arabia Delays Contractor Payments To Preserve Cash

As Bloomberg reports, "Saudi Arabia is delaying payments to government contractors as the slump in oil prices pushes the country into a deficit for the first time since 2009."

The Calm Before The Storm?

The Fed has worked overtime since the 2008 crisis to produce a stability, a sense of normalcy in the economy and markets. It is a stable equilibrium now but almost any minor shock could change that dynamic for the worse and quickly. Widening credit spreads, Treasuries and gold outperforming stocks indicate that some parts of the market are already preparing for the storm. Stocks are about the only asset yet to batten down the hatches. If this is the calm before the storm, stock investors are about to get swept overboard.

China's Glencore: State-Owner Miner And Steel Trader Avoids Default With Last Minute Bailout

While the macro watchers were keenly awaiting China's macroeconomic data dump on Sunday night, which was far worse than reported (as we will show shortly), a just as notable development was taking place in China's microeconomic world, where as the FT reported on Sunday, China's state-owned SinoSteel, the country's second largest importer of iron-ore, and a major miner and steel trader (yes, another commodity trader) was "poised to default on its bonds this week, the latest test of whether Beijing is willing to impose market discipline on national champion companies."

Wall Street's Latest Bounce - Ostrich Economics At Work

It is more evident than ever that the world economy is heading into a deflationary conflagration, but today’s generation of house trained bulls wouldn’t recognize a warning if it slapped them upside their horns. They refused once again last week to exit the casino because they got another signal from Hilsenramp that the Fed is on “hold” until at least next March. Call it Ostrich Economics. But do it quick. Those side-effects are coming to the casino some day real soon.

Crude & Copper Crumbling After China Reality Sinks In

Frontrunning: October 19

  • Great News: China’s GDP Growth Beats Forecasts as Stimulus Supports Spending (BBG)
  • Oh wait, maybe not: China GDP: Deflategate Comes to Beijing (WSJ)
  • Actually, definitely not: Shanghai rebar falls to record low after weak China GDP (Reuters)
  • But who cares: European Shares Gain on Earnings as Bonds Drop, Metals Decline (BBG)

Morgan Stanley Q3 Earnings Crash, Revenues Miss By $1.2 Billion; Volatility And Burst Chinese Stock Bubble Blamed

While the big TBTF banks managed to hide much of their ugly balance sheet exposure, and prevent it from hitting the income statement in Q3 as reported previously, while covering up prop trading losses as well as they possibly could, the banks without trillions in deposits were less able to do so: first it was Jefferies, then Goldman posted its worst quarter in years, and now here comes the bank also known as Margin Stanley, which moments ago reported Q3 EPS of $0.34, which even if adjusted for various "one-time" items, at $0.48, not only missed consensus of $0.63 wildly, but it also missed the lowest range of the estimate range ($0.53-$0.70).

Futures Flat As Algos Can't Decide If Chinese "Good" Data Is Bad For Stocks, Or Just Meaningless

The key overnight event was the much anticipated, goalseeked and completely fabricated Chinese economic data dump, which was both good and bad depending on who was asked: bad, in that at 6.9% it was below the government's 7.0% target and the lowest since Q1 2009, and thus hinting at "more stimulus" especially since industrial production (5.7%, Exp. 6.0%) and fixed spending also both missed; it was good because it beat expectations of 6.8% by the smallest possible increment, and set the tone for much of Europe's trading session, even if Asia shares ultimately closed largely in the red over skepticism over the authenticity of the GDP results. Worse, and confirming the global economy is now one massive circular reference, China accused the Fed's rate hike plans for slowing down its economy, which is ironic because the Fed accused China's economy for forcing it to delay its rate hike.

RANsquawk Week Ahead video - Now available in the video section: 19th October - ECB rate decision & press conference set for Thursday, with...

· ECB rate decision and press conference is set to take place on Thursday, with participants looking for indications as to if and how the central bank’s QE programme may be expanded
· US earning season continues next week, with high profile names including IBM, Alphabet,, Morgan Stanley and Bank of New York Mellon all scheduled to report

Clinton Considers Mandatory Gun "Buy-Backs" - Ignites Confiscation Concerns

Just days after talk of President Obama's gun control executive orders, and following a disappointing showing at the Democrat Debate, Hillary Clinton has jumped back on the populist bandwagon suggesting that, as Fox reports, it is "worth looking into" mandatory gun buy-back programs like ones in Australia.  "This validates what the NRA has said all along," said Chris Cox, executive director of The NRA, with Clinton's comments making “very clear” that the underlying goal of gun-control advocates is confiscation.

Moving Toward A One World Government, A One World Economy And A One World Religion

by Michael Snyder, The Economic Collapse Blog:
The global elite have never been closer to their goal of a united world. Thanks to a series of interlocking treaties and international agreements, the governance of this planet is increasingly becoming globalized and centralized, but most people don’t seem alarmed by this at all. In the past 30 days, we have seen some of the biggest steps toward a one world government, a one world economy and a one world religion that we have ever witnessed, but these events have sparked very little public discussion or debate. So please share this article with as many people as you can. We need to wake people up about this before it is too late.
From September 25th to September 27th, the United Nations launched a “new universal agenda” for humanity.
Read More…

Only Gold & Silver Will Protect You From Fiat Debasement


Brien Lundin from Gold Newsletter joins me to discuss the Fed’s only remaining bullet, further debasement of the fiat currency. Of course for those who understand what “debasement” is code for, it means that ultimately we will see hyperinflation of the US dollar.
The only question is, when will it start? As Brien points out “Of course It depend on how you define hyperinflation… Since they removed silver from US coinage, the US dollar has lost about 90 percent of its purchasing power. So by some people’s definitions of hyperinflation we have already seen that.” Brien reminds us that the only way to protect yourself from the Federal Reserve’s currency debasement is with physical gold and silver.

The Secret Service at Booker Elementary: The Dog That Did Not Bark

from What Really Happened:
9/11 White House press briefing:
The United States Secret Service immediately secured the President, the Vice President and the Speaker of the House, and they are all safe.
Okay, let’s have a look at how the Secret Service reacted when President Bush was informed by Andrew Card that America was under attack:
The fictional Sherlock Holmes solved the crime in “Silver Blaze” by deducing it was the owner of the house who was the criminal. How did he know? Because the dog did not bark. The only person who could have committed the crime without arousing the dog was someone the dog knew as a friend; the dog’s owner.
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The Criminalization of Christianity

from Prepper Recon:

The Dismal Thing Schlumberger Just Said about US Oil

from Wolf Street:

An engineer in the oil industry, who’d sold his house in Houston and bailed out after finding work in another state, just told me this:
A young civil engineer that I am working with is looking for more permanent, stable work. He talked with a head hunter today. The head hunter suggested that the young engineer stay where he is. He said he had 30,000 resumes in his database of engineers who were looking for work right now. Just amazing. I don’t know how many engineers there are in Houston. 200,000? 300,000?
I then called a friend of mine who works for Jacobs. Well, he no longer works there. He was laid off. A very seasoned engineer. He said he was glad I left Houston and that things were looking grim. Fluor and Technip had also laid off a lot of engineers. He said he heard that Fluor, which goes after megaprojects, had laid off 30 Process Engineers – which is what I am.
Read More

The Zionist Rulers of Arabia

from Zen Gardner:

In the year 851 A.H. a group of men from AL MASALEEKH CLAN, which was a branch of ANZA Tribe, formed a caravan for buying cereals (wheat and corn) and other food stuff from IRAQ, and transporting it back to NAJD. The head of that group was a man called SAHMI BIN HATHLOOL. The caravan reached BASRA, where the members of the group went to a cereal merchant who was a Jew, Called MORDAKHAI BIN IBRAHIM BIN MOSHE’.
During their bargaining with that merchant, the Jew asked them : “Where are you from?” They answered: “From ANZA TRIBE; a clan of AL MASALEEKH.” Upon hearing that name, the Jew started to hug so affectionately each one of them saying that he, himself, was also from the clan of AL MASALEEKH, but he had come to reside in BASRA (IRAQ) in consequence to a family feud between his father and some members of ANZA Tribe.
Read More…


by Jeff Berwick, Dollar Vigilante:

Irwin Schiff, father of Peter Schiff and freedom activist passed away in a US prison where he was being held as a political prisoner.
We would like to express our condolences to the Schiff family and publicly thank Irwin Schiff for his service and sacrifice.
Irwin Schiff was a prominent figure in the tax protester movement.  From Wikipedia, “Schiff was known for writing and promoting literature in which he claimed the United States income tax is applied incorrectly. He lost several civil cases against the federal government and had a record of multiple convictions for various federal tax crimes. Schiff was serving a 13-plus year sentence for tax crimes at the time of his death.”
While we respect the years of his life he put into this effort and the ultimate sacrifice he undertook by becoming a political prisoner we have always felt that fighting the IRS via the US government’s own “justice” system would never be successful and we mostly recommend that Americans who can just try to get out of the US to escape the largest and most aggressive tax collection outfit on Earth.
Read More

Gotta love laws making it get injected with mercury...

SB 792: Mandatory Adult Vaccinations Coming to California For Day Care Providers

This bill mandates proof of vaccination for measles, pertussis and optional annual flu vaccine (for the first year of employment) for daycare providers, early childhood teachers, head start teachers, parent co-ops where money is exchanged, YMCA early childhood and after school program caregivers, in home daycare providers and parent volunteers who care for and supervise children. A personal belief exemption for the flu vaccine is allowed but it is unclear at the time of this writing if the personal belief exemption will be allowed past the first year of employment. Medical exemptions for all three of the mandated vaccines include titer testing, pregnancy contraindicated for MMR. pre-pregnancy, lactation, pregnancy, infertility and autoimmune diseases are all considerations for medical exemption for the TDaP & MMR vaccines.
Read More

The Whole Economy is Turning Down

from USAWatchdog:

"Good News" - China GDP Beats Expectation Leaving Fed 'Relieved', Stocks Disappointed

AsiaPac stocks were generally lower heading into the all-important Chinese macro data (S&P -6pts, Japan -0.7%, China -0.2%) as JPY erased Friday's ramp and crude dropped back below $47. The PBOC left the Onshore Yuan fix practically unchanged (following Friday's significant devaluation). Then the data hit... China GDP beat expectations (printing 6.9% YoY vs 6.8% exp) but is still the lowest growth since Q1 2009. Industrial Production missed (printing 5.7% YoY vs 6.0% exp). Retail Sales beat (10.9% YoY vs 10.8% exp). The initial reaction was kneejerk buying in USDJPY and stocks but that is fading as "good news" will relieve The Fed's angst over growth...


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