Submitted by Tyler Durden on 01/11/2016 - 21:00
"We would be surprised that in this highly leveraged world, in combination with a structural decline in market liquidity, a 7-year cycle decline would just be mild. We think it’s actually just the other way around and in this context we see last year’s rise in volatility as just the start of a period with exceptionally high volatility where we wouldn’t be surprised to see record spikes in volatility over the next 12 to 17 months."
Submitted by Tyler Durden on 01/11/2016 - 23:00 A jump in the overnight cost for borrowing yuan in Hong Kong is "reflecting further PBOC efforts to stamp out speculation," according to Michael Every, head of financial markets research at Rabobank Group. Hong Kong-based Every told Bloomberg in an interview, following a massive spike in overnight borrowing rates for Offshore Yuan that "a 66% rate is murderous for others being swept up in this who are not speculating." PBOC advisor Han earlier warned that short selling the yuan "will not succeed," adding that "it is pure imagination that the Chinese yuan will act like a wild horse without any rein." But as Every notes, the unintended consequences could be a problem, "imagine you needed access to CNH for other purposes for a few days," concluding ominously that "in other EM crises we see that central banks usually win a round like this, but lose in the end."
Submitted by Tyler Durden on 01/11/2016 - 22:40 The state of our nation under Obama has become more bureaucratic, more debt-ridden, more violent, more militarized, more fascist, more lawless, more invasive, more corrupt, more untrustworthy, more mired in war, and more unresponsive to the wishes and needs of the electorate. Most of all, the government, already diabolical and manipulative to the nth degree, has mastered the art of "do what I say and not what I do" hypocrisy.
Submitted by Tyler Durden on 01/11/2016 - 21:56 A month after we first noted the major redemptions at Avenue Capital Group's credit fund (note this is a different fund from Third Avenue), and just one trading day after CEO Marc Lasry strolled arrogantly on to CNBC and told the public that "I don't think it's a time to panic, I think it's actually a time where you've got opportunities out there," Morningstar reports the Avenue Credit Strategies Fund has failed to report asset levels since about mid-December.
Submitted by Tyler Durden on 01/11/2016 - 22:13 Welcome to the recovery: a record number of Americans who are retired, or are collecting Social Security, worked part-time last month.
Submitted by Tyler Durden on 01/11/2016 - 22:10 Reuters reports that the offshore yuan (CNH) implied overnight deposit rate has hit a record high at 82%. This is squeezing CNH shorts... big time. This has crushed the Offshore-Onshore Yuan spread below 100bps for the first time in 2 months...
Submitted by Tyler Durden on 01/11/2016 - 21:50 "We are the people" "Resistance!" and "Deport them!" chanted the sign and flag-toting LEGIDA crowd. "Refugees not welcome!" read one sign, showing a silhouette of three men armed with knives pursuing a woman, while another declared "Islam = terror".
"Unprecedented Demand" - US Mint Sells Nearly As Much Gold On First Day Of 2016 As All Of January 2015Submitted by Tyler Durden on 01/11/2016 - 21:35 According to the Mint, more than half of the week's allocation of silver sold on Monday, the first day of 2016 sales, a sign that demand entering 2016 is literally off the charts. Putting the silver demand in context, the 2.76 million ounces of silver bullion coins sold today is exactly half of the 5.53 million ounces that sold in all of January 2015. Gold too: first-day sales of American Eagle gold bullion coins was also unprecedented, with the 60,000 ounces sold equal to roughly 75% of the 81,000 that sold in the entire month of January 2015.
Unique among the countries on earth, the US government insists that its laws and dictates take precedence over the sovereignty of nations. Washington asserts the power of US courts over foreign nationals and claims extra-territorial jurisdiction of US courts over foreign activities of which Washington or American interest groups disapprove. Perhaps the worst results of Washington’s disregard for the sovereignty of countries is the power Washington has exercised over foreign nationals solely on the basis of terrorism charges devoid of any evidence.
Consider a few examples. Washington first forced the Swiss government to violate its own banking laws. Then Washington forced Switzerland to repeal its bank secrecy laws. Allegedly, Switzerland is a democracy, but the country’s laws are determined in Washington by people not elected by the Swiss to represent them.
Submitted by Tyler Durden on 01/11/2016 - 20:35 “For them to say ‘hey you owe it to us, it’s Springfield’s fault, pick up our pension liability and let us kick the can in the rest of our pension liability, no, no, not happening.”
Submitted by Tyler Durden on 01/11/2016 - 20:20 Despite all the FX stability, Chinese stocks are extending losses... *SHANGHAI COMPOSITE FALLS 0.8% TO BELOW 3,000 LEVEL
Following a record-breaking surge in offshore Yuan against the USD (12 handles top to bottom) during the US session, selling has resumed into the fix. "Expectations the yuan will depreciate sharply should be seen as ridiculous and humorous," warned one Chinese official (who obviously did not get the memo of the last 3 weeks) as The PBOC injected CNY80bn and decided for the 3rd day in a row to hold the Yuan fix unchanged.
Submitted by Tyler Durden on 01/11/2016 - 19:55 The Fed is, indeed, a political, oligarchic force, and a key part of what looks and functions like a banking cartel. During the 2007-08 financial crisis, the Fed’s true nature was clear to anyone paying attention. We can’t really know what we don’t know until we look. We owe it to the “swindled futurity” of the next generation to take a long, hard look through a full and independent audit of the Fed.
Submitted by Tyler Durden on 01/11/2016 - 19:33 ... if analysts, like those at Autonomous are to be believed, China’s banks could require up to $7.7tn of new capital and funding over the next three years. State bailouts could send the government debt to GDP ratio spiralling from 22 per cent to 122 per cent. That kind of shock would be a challenge for any country, even one of China’s vast might.
Submitted by Tyler Durden on 01/11/2016 - 19:10 While the media attention was directed to the shale oil boom in the US, the Saudis created a giant offshore oil project called Manifa. With one single project Manifa added 1 million barrels a day to the world oil glut. Manifa will expand its capacity the coming year, adding a further 500 million barrels a day to world markets.
Submitted by Tyler Durden on 01/11/2016 - 18:47 American adults spent an average of $251 on lottery tickets. With a return of 53 cents on the dollar, this means the average person threw away $118 on unsuccessful lotto tickets – not a great investment. So why are we spending so much? Well, lotteries are a fun, cheap opportunity to daydream about the possibility of becoming an overnight millionaire (or in this case billionaire), but on the flip side people tend to overestimate the odds of winning. Lower-income demographics spend a much greater portion of their annual earnings on lottery tickets than do wealthier ones.
Submitted by Tyler Durden on 01/11/2016 - 18:25 While the President will do his best to put a positive spin on the current economic environment, and the success of his policies, when he gives his “State of the Union” address, it would be worth remembering whom he is actually addressing. It is also worth considering that much of this is likely the reason that Donald Trump is surging in Conservative polling. As with all things – it is the lens from which you view the world that defines what you see. For Wall Street, things could not be better. For Main Street, most everything could be better. The President has a lot of “convincing” to do if he expects to change voter’s attitudes between now and the 2016 Presidential election.
The Trans-Pacific Partnership is finished and will be eligible for a vote in Congress in February 2016. In December, the Democrats held a hearing on the Investment chapter of the Trans-Pacific Partnership. In this episode, highlights from that hearing and a summary of the provisions in one of the TPP’s most important chapters.
One of the (many) fascinating things about this latest global financial crisis is that there’s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling all at once.
China’s malinvestment binge is crashing global commodities, an overvalued dollar is crushing emerging markets (most recently forcing China to devalue), the pan-Islamic war has suddenly gone from simmer to boil, grossly-overvalued equities pretty much everywhere are getting a long-overdue correction, and developed-world political systems are being upended as voters lose faith in mainstream parties to deal with inequality, corporate power, entitlements, immigration, really pretty much everything.
The number of Americans receiving food stamps exceeds 45 million – a level which has remained relatively constant for more than four years now. That figure accounts for nearly 20 percent of the population of the country.
In 1969, there were 2,800,000 Americans in the food stamp program. Since then the number has increased more than 15-fold.
In the midst of a sluggish economic “recovery” (one which many consider non-existent), there is little doubt that a large percentage of these recipients are indeed struggling to feed their families and deserving of assistance, as the gap between the rich and poor in our nation grows ever wider.
It’s no secret that sugar is incredibly bad for you. The typical American diet, which probably has more added sugar than any national diet in the world, is known to cause obesity, heart disease, diabetes, high blood pressure, liver disease, tooth decay, nutrient deficiencies, and of course, cancer (and that’s just the short list). Cancer in particular, has been connected to sugar consumption for some time now, by both mainstream and alternative medicine. Plenty of theories have been posited to explain the precise mechanism for how sugar fuels cancer growth, and it seems that modern science has just discovered another compelling link.
A study conducted by Lorenzo Cohen at the University of Texas was recently published in the Cancer Research journal. It found that sugar influences a metabolic pathway called LOX-12, which affects how cancer spreads in the body. This is big news, because as Cohen noted in an interview with NBC, “The majority of cancer patients don’t die of their primary tumor. They die of metastatic disease.” They discovered this link after feeding mice copious amounts of sugar.
There continues to be a lot of misinformation on the internet, even on the alternative media. So, I thought I set the record straight. Yes, it’s true…. the facts show that the U.S. peaked in silver production a century ago. That’s correct, 100 years ago.
In my recent article, U.S. Silver Production Drops Significantly Again In October… Has Peak Silver Arrived?, I wrote about the recent steep drop in U.S. silver production and how this was a likely trend for many countries in the future . I also stated that if the global economy went into the toilet in 2016, then I believe Peak Silver is already here.
We were just treated to a fake official rate hike, and it was cleverly executed. The recent supposed USFed rate hike was a gigantic fraud, a misdirection, a clever ploy, and an act of extreme desperation. We were told of an official 25 basis point interest rate hike. But a hike of 0.25% is nowhere to be seen. The reality is that the USFed is so strapped, so deeply under siege, so overwhelmed, that it requires urgent help from the USDept Treasury. So they have expanded QE to become Double Barreled Hidden QE to Infinity. It has an important feature now, with national security stamped on it. This is truly the end game for the USDollar. Big thanks to Rob Kirby and EuroRaj on my colleague team for leading the way and shining the spotlight. Their abilities to see through the maze, smoke, mirrors, and din is impressive.
I’m a fan of the AR-15 type of rifles. I always have been. So, when some gun makers started coming out with AR-15s that had a gas piston, instead of the direct gas impingement system, I tested several of them. I think we could have a debate all week long as to the merits of the gas piston system versus the direct gas impingement system and we couldn’t change one another’s minds. There is absolutely nothing wrong with the direct gas impingement system, other than your AR really gets dirty, in short order. Yes, I’m aware there were problems with the first M-16s (military select-fire versions of the semiauto AR-15) when they were first shipped to Vietnam. However, there was stupid thinking on the part of someone who said the guns didn’t need to be cleaned very often and no cleaning kits were even supplied. Plus, there was a problem with the gun powder used in the ammo of the first M-16s. Once these problems were corrected, the M-16 ran fine, so long as you kept them halfway cleaned and lubed, just like any other gun.