Almost every society that has collapsed has seen such a fall heralded by severe economic turmoil. We are seeing such turmoil in the freefall of the U.S. economy and, from a bigger picture, the world economy. The world is about to enter into a period of global depression unlike anything seen before, and the necessary element to cement such a depression will soon be present: the element of war. With that element present the final link will have arrived in Obama’s grand plan to enslave the citizenry completely and destroy the U.S.
Warfare is necessary to provide the justification needed for the administration to declare martial law. Little by little Obama has been chipping away at every cornerstone of the foundations of American society. He originally had both houses of Congress, and now he’s down to just one; however, his actions have not abated. If anything they’ve increased, especially in rapidity as he has (we hope!) only a year left.
Submitted by Tyler Durden on 01/24/2016 - 13:20 After a brief hope-strewn bounce in September and October, world trade volumes have reverted to their recent stagnating growth trend, drooping 0.1% MoM in November as world industrial production swoons 0.4% MoM. On a smoothed year-over-year basis, world trade volume growth is decelerating at the fastest pace since Q4 2012 (right before QE3 was announced to save the world) and world industrial production growth is near its weakest since Q4 2008. It's not just China either as import volumes declined at the same rate in advanced economies and emerging economies.
Submitted by Tyler Durden on 01/24/2016 - 12:50 What began with Greenspan’s early-nineties covert bank recapitalization evolved into Bernanke’s foolish policy to openly inflate risk markets with new central bank Credit. Amazingly, U.S. inflationism took the world by storm. The issue today goes much beyond a stock market correction, a bear market or even global financial crisis. Contemporary central banking has failed. Theories have failed. Doctrine has failed. The inability to spur self-sustaining economic recovery has been a major issue.
"The Spread Beyond EM And Materials Is Alarming" - Citi's Global Earnings Revision Index Drops To 7 Year LowSubmitted by Tyler Durden on 01/24/2016 - 12:19 As downward earnings revisions spread beyond just emerging markets and materials, Citi's "global earnings revisions" index has dropped to a seven year low, just in time for consensus Q1 2016 EPS to slide from an increase of 1% to a decline of -1.7%, which would make it the first four consecutive quarters of declining EPS since the financial crisis.
Submitted by Tyler Durden on 01/24/2016 - 11:30 The real enemy of investors is not these fairly routine 10 or 20% downturns. The real enemy is the bear market that is associated with a recession or crisis, the one that knocks your equity block down by 40 or 50%. And actually it isn’t even the depth that is the real enemy. For most investors the enemy is time.
filed under "white trash"
Submitted by Tyler Durden on 01/24/2016 - 11:05 "ha ha ha ha ha"
Submitted by Tyler Durden on 01/24/2016 - 10:16
Submitted by Tyler Durden on 01/24/2016 - 09:30 So what is holding back risk appetite? A major overhang remains the question of how China will manage its currency. CNY is near the lower end of a range that has existed since August, a range our economists expect to hold through mid-year. But keeping the currency stable is being challenged by USD strength, and makes it more difficult for China to ease policy to support growth. We think this issue, above all others, is the main macro dilemma facing markets in 2016.
Submitted by Tyler Durden on 01/23/2016 - 23:40 Despite the services economy starting to turn down towards manufacturing's inevitable recessionary prints, there remains a hope-strewn crowd of status-quo face-savers desperately clinging to the linear-thinking "but manufacturing is only 12% of economic output and thus is no longer a good bellwether for the overall economy" narrative. Here is why they are wrong not to worry...
Submitted by Tyler Durden on 01/23/2016 - 23:17 "The world’s central banks can’t save us anymore." That was the message from some of the world’s most prominent investors at the World Economic Forum in Davos, Switzerland, on Friday. Each was resistant to putting on fresh positions and expected asset prices to head downward. In short, they say, the only winning move is not to play the game. “The trade now is to hold as much cash as possible,” said Nikhil Srinivasan, chief investment officer for Generali, a European insurer with $480 billion in assets. “Equity markets could go down 15% to 20%.”
Submitted by Tyler Durden on 01/23/2016 - 21:50 The world is now in recession at best and maybe flirting with a global depression. This means politicians will do what is best for their national political future and the consequences for the national economy, citizens or business future is of little consequence to them. This also suggests that global alliances will mean little when domestic national politicians are fighting for survival. Here is how the chess matches have turned out so far in the Putin/Obama competition.
Submitted by Tyler Durden on 01/23/2016 - 21:15 “Overall I think the United States is very aware of the danger of Iran’s mischief and nefarious activities… I don’t believe the United States is under any illusion as to what type of government Iran is.”
Submitted by Tyler Durden on 01/23/2016 - 20:05 The US has been in a cycle of bubbles, busts, and crashes since at least 1995, and more likely since Alan Greenspan became the Chairman of the Federal Reserve in August, 1987. It has become a machine for transferring income, wealth, ownership, and power to the very top. This is not 'the new normal.' This is financial corruption and the erosion of systemic integrity.
Submitted by Tyler Durden on 01/23/2016 - 19:28 As part of its 363 Asset Sale, the 3rd largest bankruptcy of 2015 after Samson Energy and Sabine Oil, that of Quicksilver, the estate was only able to collect $245 million in cash proceeds from BlueStone Natural Resources. With $2.35 billion in debt, Quicksilver was one of the first casualties of the energy bust when it filed on March 17, 2015. Today's news means that the recovery for its creditors is a paltry 10 cents on every dollar of total debt.
Submitted by Tyler Durden on 01/23/2016 - 18:55 A new analysis of the Trans-Pacific Partnership (TPP) international trade deal has found claims of increased jobs are likely exaggerated..."TPP would lead to employment losses in all countries, with a total of 771,000 lost jobs. The United States would be the hardest hit, with a loss of 448,000 jobs."
Submitted by Tyler Durden on 01/23/2016 - 17:45 "I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under Allah...."
George Orwell once wrote “If you want a picture of the future, imagine a boot stamping on a human face—forever.” Not exactly a cheery thought, and one I don’t agree with.
While the forces pushing for centralization of power have been prevailing for decades, they haven’t won a total victory yet. Technologies that empower the individual and that tend toward decentralization—including the Internet, encryption, 3D printing, and cryptocurrencies—offer a powerful ray of hope, reasons to be optimistic about the future.
So the tug of war between the collectivists and the rest of us continues.
From now on refugees can drive vehicles without having to show a driver’s license when stopped by police, the Swedish newspaper Fria Tider reported, citing Sveriges Radio.
A Swedish court dismissed the case of a young man from Bosnia, who was caught operating a car without a driving permit. The man told judges that he actually had a driver’s license in his country of origin, but had lost it nine months ago when he moved to Sweden.
Although the man did not prove that he had a license in Bosnia, Swedish judges chose not to charge him, because they could not prove that he did not have a license in Bosnia, according to the Swedish newspaper. In other words, Swedish judges had to prove that the man didn’t have a driver’s license in Bosnia, which ended up being an impossible thing to do.
A British governmental inquiry has concluded that Russian President Putin “probably approved” the killing of Alexander Litvinenko by polonium poisoning.
As no evidence is provided for the surmise, we can conclude that this report on an unresolved event that happened a decade ago is part of the lies being used by the West to demonize Putin, just as the lies about MH-17 and “the Russian invasion of Ukraine.”
Litvinenko’s brother and father say that they “are sure that the Russian authorities are not involved. It’s all a set-up to put pressure on the Russian government.” Maksim Litvinenko dismisses the British report as a smear on Putin. https://www.rt.com/news/329804-litvinenko-brother-britain-murder/
As we outlined last week, the bursting of the bond bubble has begun. Twice in the last 15 years, markets have tried to correct the mistakes and excesses of the Bubble Epoch. Each time, the Fed came back with even more mistakes and excesses. Trillions in new credit… lower lending rates… easier terms… ZIRP… QE… and the Twist!
Over the short run, markets respond to myths. Investors are ready to believe almost anything… for a while. But over the long run, there is death and destruction – a reality outside of what we believe.
“If you don’t want a man unhappy politically, don’t give him two sides to a question to worry him; give him one. Better yet, give him none. Let him forget there is such a thing as war. If the government is inefficient, top-heavy, and tax-mad, better it be all those than that people worry over it…. Give the people contests they win by remembering the words to more popular songs or the names of state capitals or how much corn Iowa grew last year. Cram them full of noncombustible data, chock them so damned full of ‘facts’ they feel stuffed, but absolutely ‘brilliant’ with information. Then they’ll feel they’re thinking, they’ll get a sense of motion without moving. And they’ll be happy, because facts of that sort don’t change.” — Ray Bradbury, Fahrenheit 451(Story by John Whitehead, republished from Rutherford.org)
How do you change the way people think? You start by changing the words they use.
In totalitarian regimes—a.k.a. police states—where conformity and compliance are enforced at the end of a loaded gun, the government dictates what words can and cannot be used. In countries where the police state hides behind a benevolent mask and disguises itself as tolerance, the citizens censor themselves, policing their words and thoughts to conform to the dictates of the mass mind.