Submitted by Tyler Durden on 02/03/2016 - 07:43 On Tuesday we got the latest evidence that officials across the globe are preparing to institute a cashless “utopia” when Handelsblatt reported (in a piece called "The Death of Cash") that the Social Democrats - the junior partner in Angela Merkel’s coalition government - have proposed a €5,000 limit on cash transactions and the elimination of the €500 note. Berlin is using a familiar scapegoat to justify the plan: the need to fight "terrorists" and “foreign criminals."
Submitted by Tyler Durden on 02/03/2016 - 10:35 After initial weakness, crude prices have rallied since last night's across the board inventory build reported by API (especially gasoline). Against headline expectations of a 3.8mm build, DOE reported a huge 7.8mm rise with Gasoline also surging 5.9mm barrels. The overnight ramp gains on OPEC rumors have been erased and WTI is back below $30.
Submitted by Tyler Durden on 02/03/2016 - 10:21 With the dollar tumbling and Dudley and Kuroda exposed as impotent, investors are rotating to the safety of not Biotechs but Bullion and Bonds. Gold just pushed above $1135 to 3-month highs, breaking above its crucial 200-day moving-average...
Submitted by Tyler Durden on 02/03/2016 - 10:07 In the words of Markit's chief economist, "the US upturn has lost substantial momentum over the past two months," as the golden child of any current bullish narrative - the Services economy - drops to its weakest since October 2013 (PMI 53.2, missing expectations). Plunging backlogs suggest hiring will slow notably and then ISM Services hit at a 23-month low, plunging back towards manufacturing's weakness, with employmenmt at its weakest sicne April 2014 and unadjusted new orders at their weakest since Jan 2014.
Futures Jump After Bill Dudley Hints At Fed "Policy Error", Warns Of "Significant Consequences" From Strong DollarSubmitted by Tyler Durden on 02/03/2016 - 09:37 "A weakening of the global economy accompanied by further appreciation in an already strong dollar could also have "significant consequences." I read that as saying we're acknowledging that things have happened in financial markets and in the flow of the economic data that may be in the process of altering the outlook for growth and the risk to the outlook for growth going forward."
- Bill Dudley
Submitted by Tyler Durden on 02/03/2016 - 08:40 "Why after several decades of 0% rates has the Japanese economy failed to respond? Why has the U.S. only averaged 2% real growth since the end of the Great Recession? “How’s it workin’ for ya?” – would be a curt, logical summary of the impotency of low interest rates to generate acceptable economic growth worldwide. "
Submitted by Tyler Durden on 02/03/2016 - 08:32 It appears The ADP Employment report was not good enough to support fed rate-hikes as across the majors, traders are selling USDs... Gold is also surging. It appears someone is betting large that this week's payroll data will be weak...
Submitted by Tyler Durden on 02/03/2016 - 08:01 Yesterday we reported that following a spike in calls by the sellside to "sell the rally", hedge funds did just that and according to BofA client data, hedge funds dumped the most shares in the past week in two years. Today, JPM's Adam Crisafulli repeats the firm's now default call for 2016, noting that "the bigger picture backdrop for the market remains the same."
Submitted by Tyler Durden on 02/03/2016 - 06:55 While the biggest news of the night had nothing to do with either oil or China, all that mattered to US equity futures trading also was oil and China, and since WTI managed to rebound modestly from their biggest 2-day drop in years, rising back over $30, and with China falling only 0.4% overnight after the National Team made a rare, for 2016, appearance and pushed stocks to close at the day's high, US E-minis were able to rebound from overnight lows in the mid-1880s, and levitate above 1900. Whether they sustain this level remains to be seen.
Submitted by Tyler Durden on 02/02/2016 - 22:25 The discipline of gold as Reserves backing currency at a revalued price will restore order to a world that has refused to adopt the necessary discipline until forced to do so in the desperate situation now evolving, where there will be no other alternative but to accept the detested fiscal and financial discipline imposed by gold.
Headline should read...Smart Phones...Stupid Sheeplez...
Surely no one can have failed to notice: engineered electronic intelligence in pocket sized parameters is a formidable little weapon of potential mass destruction.
However, one must not make assumptions, since most of humanity has so far failed to notice that atmospheric aerosol geoengineering is a weapon of mass destruction, I guess it should come as no surprise that ‘smart’ cell phones remain largely unrecognized as the little mind-bombs that they are.
Not the sort of bombs that cause vast explosions – that form of destruction may be close to past its sell-by date for those who would engineer our futures. No need, after all, to blow us all to hell if we are perfectly happy to go there quietly, of our own accord. And many millions seem ready to do just that; led by the Pied Piper of convenience technology.
Billionaire retail magnet Hugo Salinas Price says the world debt has peaked and has no place to go but down.
Salinas Price explains, “It is a global phenomenon, yes. The world has too much debt, and now it’s trying to get out of debt. That’s what’s going on. . . . The debt peaked in August of 2014. I’ve been watching this for 20 years, and I have never seen anything like it. It was always growing, and now something has changed. A big change of this sort is an enormous event. I think it portends a new trend, and that trend will be to get out of debt. Deleverage and pay down debt. That is, of course, a contraction. Contraction means depression. The world is going into a depression. It’s going to get very nasty. The end result is nations, governments are going to have to revalue gold because that is the only thing they will have left. They will have to resort to that to keep trade coming in. No country is completely independent economically. We all need things others produce. . . . In order to have that world trade going, we are going to have to go back to gold. That’s my vision anyway.”
Nasty secondary effects of corporate cost-cutting.By now, 40% of the companies in the S&P 500 index have reported earnings for the fourth quarter, including eight of the top 10 by weight. The S&P 500 companies, accounting for about 80% of market capitalization, are a good sample for what’s going on in corporate America. And what is going on is the first revenue and earnings recession since 2008/2009.
Revenues on a blended basis – actual revenues for companies that have already reported, and estimated revenues for companies that haven’t yet reported – fell 3.5% in Q4 from a year ago, according to FactSet.
All the smart dummies, upper class and yuppies go along with and/or join the Outer Party, thinking they’ll win, when the Inner Party hates them more than the proles.
As I have documented many times, the coming technocracy is not something to come in the dark, distant future, but a present reality. Snowden’s supposed “revelations” were nothing more than rehashed information from years ago that James Bamford included in all his books. Technology is actually 30 years ahead of what is released to the public, and this means the coming AI dominated central system is presently in its reconnaissance stage, gathering intel on the best human opponents through the large online gaming communities. Through all the tracing and tracking, the supercomputers are storing the data for future-predictive algorithmic war gaming.
At a time when Warren Buffet is pulling money out of most markets, he’s putting money into oil. Suspicious?
Buffett Sits on $50 Billion Cash-Hoard, Waiting for Bubbles to Pop
The Next Crash in 2016
Here is one instance where it is not necessarily the case that Warren Buffet is benefitting from “advice” on markets from his insider buddies on Wall Street. He doesn’t need such an edge for this bet, because it is totally a no-brainer. We all know the world is running out of oil. We all know that the U.S. is manipulating the price of oil (via the Wall Street terrorists), because Barack Obama has publicly bragged about it. Read More
A federal appellate court has now given Dow Chemical Company the green light to revive World War Two-era, weed-killing chemicals that will be sprayed on our crops to an even greater degree than the ones currently in use.
According to Dow, its latest weedkiller, Enlist Duo, a toxic combination of 2,4-D and glyphosate chemicals, offers “unrivaled weed control.” But what the company doesn’t tell you is that the formulation came about because glyphosate was proving to be a drastic failure on crops across the globe.
On October 22, 1981, the national debt in the United States of America hit $1 trillion for the first time in history.
It had taken the US federal government over two centuries to reach that mark. And in that period, America had won its independence and built a nation from scratch.
They created an army and a navy, and used them both to aggressively expand the nation’s domain.
They fought an incredibly bloody civil war in dispute over the most fundamental concepts of freedom.
They engaged in worldwide imperialism, stretching the country’s influence to faraway overseas colonies.