Friday, January 29, 2016

The Disturbing Reasons Why The Bank Of Japan Stunned Everyone With Negative Rates

"When stocks are falling this much, it's hard to justify not acting," said one of the individuals, who has occasional contact with Kuroda.

And The Biggest Contributor To U.S. Growth in 2015 Was...

One look at the chart below should explain not only how the "services" half of the US economy continues to grow, but just which tax, because that is how the Supreme Court defined Obamacare, is responsible for healthcare "spending" amounting to a quarter of the growth in US personal consumption expenditures...

Latest Twist In The Stock Market's Wild 2016 Ride

Bad stuff tends to happen in bad markets. This includes volatility spikes. Thus, the presence of this recent 4-day roller coaster is perhaps a clue that our present market landscape is not a healthy one.

Something's Gone Horribly Awry

Clearly, something’s gone horribly awry. Hard work, perseverance, and ingenuity likely have something to do with the shiny streets. Conversely, sloth, drug abuse, and mental defectives likely have something to do with the blighted streets. But we also have an inkling that 20 years of activist Fed policy has left its marks all over both.

WTI Plunges To $32 Handle - Erases All "OPEC Production Cut Hope" Gains

Well that de-escalated quickly...

China's Biggest Drop "Since Lehman" Is Worst.January.Ever

Thanks to BoJ's global "float all boats" NIRP-tard-ness, Chinese stocks avoided the headline of "worst month in 21 years" by rallying above the crucial 2,667 level (for SHCOMP). However, January's 23% pluinge is the worst month since October 2008 and is officially the

6 Cities In Michigan Have Even Higher Levels Of Lead Than Flint

The problem is... we’re still using kids as lead detectors.”

Macro Hedge Funds Crushed Again

That giant sucking sound you hear is the P&L of macro/FX hedge funds as they look in dismay at their USDJPY exposure.

Grenade Hurled At Refugee Shelter As 40% Of Germans Tell Merkel To Resign

It's all falling apart in Germany as frightened citizens load up on small arms and hurl grenades at migrant centers while at least 40% of the public now believes the "Iron Chancellor" should resign.

What Oil Production Cuts: Iran Says It Won't Support Any Supply Cut Or Emergency OPEC Meeting

The main reason for oil's torried surge over the past 2 days is that following yesterday's Russia-Opec "oil production cut" headline fiasco, crude traders - who as we previously reported already had a record net short position - scrambled to cover their exposure on the assumption that where there is oily smoke, there will be fire. We can now put to rest any speculation that OPEC will proceed with any supply cuts, whether Russia requests it or not, because as the WSJ reported moments ago, not only will OPEC not support a supply cut but it will also not support an emergency OPEC meeting.

And The Market Breaks... Again

Something just broke in the options markets...

The Last Time Inflation Expectations Were This Low, Bernanke Unveiled QE2

While University of Michigan confidence slipped modestly from December's print, the tumble in expectations (hope) from the preliminary print is perhaps more important as stocks dropped and volatility struck. However, more problematic for an inflation-hoping Federal Reserve is the drop in 12-month inflation expectations. The last time inflation expectations were lower than this was September 2010.. when Bernanke hinted at QE2 at jackson Hole.

Chicago PMI Spikes Most Since 1980... Yeah, Seriously

After crashing to post-Lehman lows in December, there was some hope for a bounce in January but this is simply idiotic. Chicago PMI soared 30%  - the most sicne 1980 - from 42.9 (7 year lows) to 55.6 (1 year highs). This was miraculously driven by double-digit and all-time record gains in new orders and order backlogs.

This Is Why "Everyone Was Shocked" By The BOJ Announcement

EURUSD Snaps Lower, Tests Key Resistance

EURUSD just broke 80 pips lower instantaneously as it seems a somewhat delayed reaction to US GDP data sparked panic buying of USDollars (despite Fed Funds futures pricing in no more rate hikes in 2016). At 1.0855, EURUSD is testing the ket 50-day moving-average and is back below pre-Draghi levels...

The Death Throes Of The Bull

Not only is the specter of recession growing more visible, but it is also attached to a truth that cannot be gainsaid. Namely, having stranded itself at the zero bound for an entire business cycle, the Fed is bereft of dry powder.

"Peddling Fiction" - US Economy Grew A Paltry 0.69% In The Fourth Quarter, Missing Expectations

And so the final quarter of 2015 is in the history books and we can officially accuse the US Bureau of Economic Analysis of "peddling fiction" about the US recovery, because at a growth rate of 0.69%, the annualized rate of economic growth was the lowest since the first quarter of 2015 when it grew an almost identical 0.64% which was blamed on the harsh weather. This time however, there is no easy scapegoat.

Macy's Slashes Guidance Again, Twice In One Month

Earnings per diluted share for the full-year 2015 now are expected in the range of $3.54 to $3.59, excluding expenses related to cost efficiencies announced earlier in January and asset impairment charges associated primarily with spring 2016 store closings. This compares with previous guidance in the range of $3.85 to $3.90. Updated annual guidance calculates to guidance for fourth quarter earnings of $1.85 to $1.90 per diluted share

Bond Yields Are Collapsing Around The World

Kuroda's decision to go full NIRP-tard is benefitting investors worldwide... in bonds. JGB yields hit record lows, 5Y Bunds are trading below the -30bps ECB deposit rate, and US Treasury yields are collapsing across the curve with 10Y below August's Black Monday lows back to 9 months lows...

Edited Version of FBI Video of Joint FBI & OSP Operation 01/26/2016 [NOTE: Robert “LaVoy” Finicum Shot In The Back @ 6:06]

from fbi:

This is a shortened and edited version of FBI footage showing the joint FBI and Oregon State Police traffic stop and OSP officer-involved shooting of Robert “LaVoy” Finicum on the Malheur National Wildlife Refuge. This condensed clip was shown at an FBI press conference in Burns, Oregon on 01/28/2016. The complete raw footage is also available here:

FBI Releases Video Of Shooting Death Of Oregon Occupier

"Actions have consequences"...

Global Stocks, Bonds Jump On BOJ NIRP Stunner; Rally Fizzles After Crude Fades Gains

It is safe to say that nobody expected the BOJ stunner announced last night, when Kuroda announced that Japan would become the latest country to unleash negative interest rates, for one simple reason: Kuroda himself said Japan would not adopt negative rates just one week ago! However, a few BIS conference calls since then clearly changed the Japanese central banker's mind and as we wrote, and as those who are just waking up are shocked to learn, negative rates are now a reality in Japan. The immediate reaction was to send the USDJPY surging by nearly 200 pips, back to levels seen... well, about a month ago.

"The BoJ's NIRP Will Result In More Currency Wars And Global Growth Slowdown"

"The BoJ actions should lead to further intensification of global currency wars with central banks around the world trying to engineer sustained competitive devaluation against the background of slowing global trade and growth as well as persistent commodity price disinflation. With its latest measures the BoJ will allow Japan to borrow more growth from its trading partners and limit the severity of the imported disinflation."

ANOTHER NAIL IN THE U.S. EMPIRE COFFIN: Collapse Of Shale Gas Production Has Begun

by Steve St. Angelo, SRS Rocco Report:

The U.S. Empire is in serious trouble as the collapse of its domestic shale gas production has begun.  This is just another nail in a series of nails that have been driven into the U.S. Empire coffin. Unfortunately, most investors don’t pay attention to what is taking place in the U.S. Energy Industry.  Without energy, the U.S. economy would grind to a halt.  All the trillions of Dollars in financial assets mean nothing without oil, natural gas or coal.  Energy drives the economy and finance steers it.  As I stated several times before, the financial industry is driving us over the cliff.
The Great U.S. Shale Gas Boom Is Likely Over For Good
Very few Americans noticed that the top four shale gas fields combined production peaked back in July 2015.  Total shale gas production from the Barnett, Eagle Ford, Haynesville and Marcellus peaked at 27.9 billion cubic feet per day (Bcf/d) in July and fell to 26.7 Bcf/d by December 2015:
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The Gold Vaults of London: Malca-Amit

by Ronan Manly, Bullion Star:

Following on from the recent blog post “G4S London Gold Vault 2.0 – ICBC Standard Bank in, Deutsche Bank out“, which discusses the G4S precious metals vault located on Abbey Road in the Park Royal area of London, its instructive to also look at where the other London Gold Market vaults are located.
According to the vaulting pages on the London Bullion Market Association (LBMA) website:
“There are seven custodians offering vaulting services in the London bullion market, three of whom are also clearing members of the LBMA (Barclays, HSBC and JP Morgan). There are also four other security carriers, who are also LBMA members (Brinks, G4S Cash Solutions (UK), Malca Amit and Loomis International (UK) Ltd). The Bank of England also offers a custodian service (gold only).”
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Hillary Clinton: A Deplorable Choice For President

from The Sleuth Journal:

Among an array of deplorable Republican and Democrat presidential aspirants, Clinton stands out as the most dangerous and sinister of the bunch – an unrequited war goddess, risking nuclear confrontation if elected.
Her record in office and since leaving government shows support for imperial lawlessness, indifference to human suffering, and addiction to self-aggrandizement, along with using her high office to accumulate great wealth.
Clinton Foundation donors have direct ties to foreign nations, including a Saudi royal family member, corrupt Ukrainian oligarch/former Kiev parliamentarian, and anti-Chavista Venezuelan media mogul.
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China Nuclear Explosion to Kick Off Uranium Boom

from Outsider Club:

China is about to blow the hinges off the nuclear energy and uranium markets.
This is more fact than speculation.
Here is a headline from today — January 27th, 2016:
Yes, in China’s most recent five-year plan, details of which are emerging now, it is aiming to build 40 nuclear power plants in the next five years.
Right now — at this very moment — China requires 8,161 metric tons of uranium annually. That’s 17.9 million pounds. A full 12% of global demand.
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Will the 2016 Primaries Be Electronically Rigged?

by Victoria Collier and Ben Ptashnik, Truth-Out:

You’ve heard the old adage ‘follow the money.’ I follow the vote, and wherever the vote becomes an electron and touches a computer, that’s an opportunity for a malicious actor potentially to … make bad things happen.” — Steve Stigall, CIA cyber-security expert, in remarks to the US Election Assistance Commission
Primary election rigging in the coming weeks and months is all but assured if American voters and candidates don’t take steps to prevent it now. Evidence that US voting systems are wide open to fraud and manipulation should be taken seriously in light of the unprecedented high-stakes elections we’re facing.
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George Soros Finally Suspends His Lifelong War Against Russia

from Washington’s Blog:

On January 21st, George Soros, who has throughout his life been passionately opposed not just to communism but also to Russia, finally stated in a Bloomberg News interview at the World Economic Forum, that the United States (and possibly the EU, but he says that the EU is in terrible economic shape itself) must now fund a new Marshall Plan for all of Europe, including, this time, even his bĂȘte noire: Russia.
However, is he ending, or merely suspending, his lifelong war against Russia? Let’s look at the evidence, including the background for his comments. The crucial background in order to understand his statement is provided in the links here:
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