Submitted by Tyler Durden on 10/01/2015 - 15:53
"The system failed in 2008/09 and rather than allow a proper creative destruction cleansing, policy makers have been aggressively propping it up ever since. We think the end game is that when the next global recession hits, then QE/zero rate world will be re-appraised."
BofA Issues Dramatic Junk Bond Meltdown Warning: This “Train Wreck Is Accelerating”
Submitted by Tyler Durden on 10/01/2015 - 18:00 For those eager to push aside the endless government propaganda and concerned about the rapidly deteriorating economy, here is a list of the Top 20 biggest private-sector job cut announcements of 2015. Our advice: for anyone who is still employed at any of the following corporations, if you can find a job elsewhere (because the "recovery" and all), do it before you too become a seasonally-adjusted pink-slip.
Submitted by Tyler Durden on 10/01/2015 - 17:30 The signs of deflation are now flashing all over the globe and the possibility of an associated financial crisis is now dangerously high over the next few months. Our preferred model for how things are going to unfold follows the Ka-Poom! Theory, which states that this epic debt bubble will ultimately burst first by deflation (the "Ka!") before then exploding (the "Poom!") in hyperinflation due to additional massive money printing efforts by frightened global central bankers acting in unison. First an inwards collapse, then an outwards explosion.
Submitted by Tyler Durden on 10/01/2015 - 18:30 Between the demographic time bomb about to go off - that is, the growth of the elderly population far exceeding the growth of the working age population by several orders of magnitude - and then the weak economy, the huge expansion of entitlements under the health care law, and the dramatic increases of the costs of those entitlements, including for labor, what could possibly go wrong?
In Latest Sign Of EM Chaos, Turkey's FX Reserves Fall Below Key Threshold Ahead Of Pivotal ElectionsSubmitted by Tyler Durden on 10/01/2015 - 16:45 If you think it’s bad now, just wait until November. If AKP doesn’t secure an absolute majority there’s no telling how Erdogan will react and if Ankara moves to nullify yet another democratic election by intentionally stirring up the PKK, you can expect outright chaos.
Submitted by Tyler Durden on 10/01/2015 - 16:30 The system is a machine in which each gear serves the whole. So go ahead and try to "reform" the system by extracting whatever gear you don't approve of: the Deep State components, the Security State organs, the Federal Reserve, cartels/monopolies enforced by the State, the suppression of democracy, crony capitalism, whatever. The system is interdependent. Each subsystem needs the others to function.
Submitted by Tyler Durden on 10/01/2015 - 16:07
Submitted by Tyler Durden on 10/01/2015 - 15:45 "It's living in hell in Syria. They are living in hell," according to Donald Trump, blaming President Obama's failed policies. However, in a reversal of policy - earlier this month he told Fox News the US should take in more refugees - Trump told a New Hampshire rally: "If I win, they're going back."
Submitted by Tyler Durden on 10/01/2015 - 15:20 Every year ending in a '5' has posted a positive return since 1875. In other words, the last 13 '5' years have left stock investors "high-fiveing" each other. However, the number of times the S&P 500 has finished the year positive - after being down 6% at end of Q3 - is ONE!
Submitted by Tyler Durden on 10/01/2015 - 14:55 Always the silver lining... refugee housing crisis "solved"
Submitted by Tyler Durden on 10/01/2015 - 14:30 Two years after the controversial appointment of Saudi Arabia to the U.N. Human Rights Council, leaked diplomatic cables have revealed the U.K. was a key player in the election of the Gulf State - despite the Saudis’ appalling human rights record. What is surprising is the next chapter in the farcical saga...
Submitted by Tyler Durden on 10/01/2015 - 14:06 As Bloomberg reports, "German Chancellor Angela Merkel’s government signaled it will step up expulsions of economic migrants after the influx of asylum seekers reached a record in September."
Submitted by Tyler Durden on 10/01/2015 - 13:52 Those paying close attention to the geopolitical chess game unfolding in the Middle East might have noticed a rather amusing contradiction in Riyadh’s foreign policy stance of late...
Submitted by Tyler Durden on 10/01/2015 - 13:41 But the question remains whether financial condition concern should manifest itself through unemployment and inflation dual mandate forecasts or be a separate consideration all together? To me, the danger in the latter is it turns central bankers into traders and market timers and that is something they are unlikely to have trained for
Submitted by Tyler Durden on 10/01/2015 - 13:15 "Under U.S. law - the law that, not coincidentally, governs most of the world’s largest online platforms - intermediaries such as Twitter and Facebook generally can’t be held responsible for what people do on them. But the United Nations proposes both that social networks proactively police every profile and post, and that government agencies only “license” those who agree to do so." Interestingly, it appears Apple and Facebook want to get ahead of the curve and begin censoring news the U.S. government might find embarrassing right away.
Submitted by Tyler Durden on 10/01/2015 - 12:25 Ever since The Fed began to taper QE, global manufacturing growth (as ascribed by JPMorgan's global PMI) has been falling almost incessantly. August's 50.6 print is the weakest 'expansion' since June 2013 as output fell to its lowest since April 2013 with New Orders falling.
Significant nominal peaks in the price of silver tend to come after significant nominal peaks in the Dow. This has been the case for the last 100 years at least.
It is no coincidence that significant silver rallies follow after significant Dow rallies end, as I have explained before. It is simply a natural reaction to what caused the stock market rally as well as the effects of that rally. So, if it happened before, it will certainly occur again.
These stock market rallies are driven by the expansion of the money supply, causing a big increase in value of paper assets (including stocks) relative to real assets. When the increase in credit or the money supply has run its course, and is unable to drive paper price higher; value then flees from paper assets to safe assets such as physical gold and silver, causing massive price increases.
Investment Research Dynamics:
Forbes released its annual list of wealthiest Americans this week. The data shows that Jeff Bezos, the founder and CEO of Amazon.com, made $16 billion in 2014. While perhaps admired by the segment of our society that worships the dollar above all else, this is nothing more than the grotesque reminder how just how fraudulent the United States system has become.
Bezos earned in one year more than 8x the amount of net income that he has delivered to AMZN shareholders cumulatively over the 20-year operating history of the Company:
What did you do this morning? Regular routine; maybe a little breakfast, see the kiddos off to school, maybe a little light reading? Pretty similar to yesterday and the day before?
These are the questions that have been bothering me for a week or so, because I can not figure out what I have done to warrant such hatred by the elitist running this country. The disdain that must ooze from the pores regarding the other 99.9% of humanity, in the U.S. in particular, must have done something truly vile and evil.
I was standing on the porch a few nights ago while my wife and I were looking at the chemtrail infested sky at sunset. That’s when it hit me. My wife has even begun to understand the trails across the sky are not natural nor are they contrails generated when hot exhaust air from a jet engine meets cool upper atmosphere air. If that were case then someone please explain this:
As foreign refugees continue to flood into Western Europe, one country in particular stands out for bearing the brunt of the refugee crisis. Germany has embraced more of these people than any other nation in the EU, and it looks like the fabric of their society is beginning to buckle under their weight. This isn’t happening in a cataclysmic sort of way (at least for now), but the crisis is clearly affecting the lives of the average German, and not in a good way.
I’m sure the German government thought that everything would be hunky dory. They probably assumed that these refugees would one day make an excellent cheap labor source to shore up their falling birth rates, and Germany’s citizens would embrace the downtrodden foreigners with open arms. Of course, nothing of this magnitude is ever that simple. You can’t make an omelet without cracking a few eggs, and in this case, the native Germans are the eggs. Here’s what the average German has been dealing with in just the past week:
A month and a half ago, when the US-Turkey deal for the creation of Kurdish ISIS-free zones was still the big talking point in the Syrian war, Russia was engaged in a diplomatic effort that flew under the radar. Their plan: to create a “broad coalition” of countries to seriously confront the ISIS threat.
The idea, floated by Russian minister Lavrov at the Iran nuclear negotiations in Vienna and other international venues, received little attention and wasn’t taken very seriously by anyone. Spurned by the so-called “Syrian National Council,” rejected by the Saudis, and, inevitably, turned down cold by the White House, it looked like this was destined to be another Russian foreign policy initiative that would whither on the vine.
With many people still wondering if the downside action has been a test of the recent lows, today King World News is pleased to share an extraordinary piece which takes a look at the staggering amount of withdrawals by frightened investors out of mutual funds in the past 3 months as panic recently began to engulf the world. This piece also includes two key illustrations that all KWN readers around the world must see.
Jason Goepfert at SentimenTrader: “Investors fled U.S. mutual funds in August. Domestic funds suffered more than $60 billion in outflows over the past three months, among the most severe redemptions in thirty years. As a percentage of total assets, the damage wasn’t as bad but still ranks as extreme (see chart below)
In last week’s article I pointed out that negative interest rates should lead to a general shift in consumer preferences from money towards essential goods.
Central bankers may wish for this outcome on a controlled basis to allow them to hit their price inflation targets, and this could happen quite quickly. If people face a tax on their cash and bank deposits, which is what a negative interest rate amounts to, they will simply reduce these balances, artificially boosting demand.
There can be little doubt that negative interest rate policies (NIRP) are now a distinct possibility after the Fed backed down from raising the Fed Funds Rate at their September meeting, having prepared markets well in advance for the event.
Bill Bonner, founder of Agora Financial, joins the show to discuss the hysteria preceding Janet Yellen’s announcement last week that the Fed would not raise interest rates. We also consider various ugly endgames for the US dollar, and whether federal debt will all come crashing down with a bang or a whimper.
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