Wednesday, July 13, 2016

Why Helicopter Money Won't Push Stocks Higher...



In effect, helicopter money turns the entire economy into a Ghost City. Things look busy and productive until the day the helicopter money runs out. From that day on, everything crashes back to reality and tumbleweeds are soon blowing down empty streets.
 

Fed’s Mester Says Helicopter Money “The Next Step” In US Monetary Policy

from Zero Hedge:

“We’re always assessing tools that we could use,” Mester told the ABC’s AM program. “In the US we’ve done quantitative easing and I think that’s proven to be useful. “So it’s my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.
Think “helicopter money” is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan’s Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that “boosting fiscal and monetary stimulus at the same time would be effective” in Japan)? Think again.
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Some Stocks Fall: Mainstream Media Proclaims "Flat Is Kind Of A Win!"

 

Possible Italian Panic Emptying ATM Machines? News Spreads to USA Leading to Panic Food Prepping!

from Silver The Antidote:

Is this all over reaction ? not enough news so take it with a pinch of salt. but just in case keep watching headings in case it is real and develops.

Will The Bank Of England Become The 55th Central Bank To Cut Rates Since 2014?


Malayisa's surprise rate-cut overnight made it the 54th central bank to ease policy since the beginning of last year. Will Carney make The Bank of England the 55th tomorrow?

Saddest Bumper Sticker Of The Year

Email-Gate Blowback: Trump Takes Lead Over Clinton In 3 Key Swing States

With the majority of Americans disapproving of FBI Director Comey's (and implicitly Loretta Lynch's) decision to let Hillary off, it is perhaps not surprising that in the first major poll following the email-gate debacle, Donald Trump has taken the lead in three key swing states and narrowed Clinton's lead overall to just 3 points. As one analyst noted, "while there is no definite link between Clinton's [drop and the DoJ decision] she has lost ground to Trump on questions which measure moral standards and honesty."

Talk Of Oil "Death Spiral" Emerges

Lipow Oil Associates sees the start of a "death spiral" as "product inventories are high, margins come under pressure, refiners reduce crude runs and therefore the crude-oil glut grows to the point where someone wants to discount" to unload it--inspiring refiners "to kick up their runs again." .
 

Former DOJ Prosecutor Sues Obama, Black Lives Matter And Eric Holder For Inciting Race War





Be Aware, But Not There! National 'Day of Rage' Scheduled For July 15th, 2016




The hacktivist group Anonymous is now calling for nationwide Day of Rage protests on Friday, July 15th. No matter how great your empathy might be for those who have unjustly lost their lives, these protests are not safe places to be.

Humpday Humor: Earnings Expectations Edition




Fool me once, shame on you. Fool me twice, shame on me. Fool me for the sixth year in a row - I must be a bloody idiot!!

Boris Johnson Appointed British Foreign Secretary




While today's resignation of David Cameron and immediate appointment of Teresa May as his replacement was fully expected, moments ago May's cabinet served up her first major surprise when it was revealed that the man who led the Brexit campaign, Boris Johnson, and who many assumed would not hold a key role in the new UK cabinet, was just appointed to replace Philip Hammond in what may be the most prominent and important role as the UK prepares to negotiate its exit from the EU: that of foreign secretary.

Something "Unexpected" Emerges In The Blendon Township Police Activity Log


French Intel Chief's Stunning Warning: Europe Is "On Brink Of Civil War" Due To Migrant Sex Attacks




In a shockingly non-politically-correct outburst, Patrick Calvar, chief of the Directorate General of Internal Security, told members of the French parliamentary commission that thanks to the increasing frequency of sexual assaults by islamic migrants, "Extremism is growing everywhere... We are on the brink of civil war." 

Fed's Beige Book Repeats "Modest Improvement", No Rate Hike Odds Reaction




The Beige Book offered its ubiquitous modest, moderate, mummified growth outlook with little insight into whether the Fed is considering any rate hike in the immediate future, with the following summary of the Fed's two non-market mandates: "Labor market conditions remained stable as employment continued to grow modestly since the previous report and wage pressures remained modest to moderate. Price pressures remained slight."

The Four Things That Keep Citi Clients Up At Night




The investment community remains in a quandary as the S&P 500 hits new highs alongside fund managers struggling with portfolio performance. Three questions tend to be uppermost in their minds – 1) can “defensives” keep rallying, 2) how can investors be “bearish” if the S&P 500 touches record levels and 3) what if Trump wins? An added concern - or perhaps hope - is whether there a possibility of even higher P/E ratios if US bond yields are suppressed by negative yields elsewhere?

Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy




"We're always assessing tools that we could use," Mester told the ABC's AM program. "In the US we've done quantitative easing and I think that's proven to be useful. "So it's my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.

This Is What Happens To Car Sales In A "Socialist Utopia"




Before the 'election' of President Maduro, Venezuelan domestic car sales were in the 8 to 10,000 range per month. Since Maduro's election things have gone south fast in the socialist utopia...

Steller 30Y Auction Sees Highest Foreign Central Bank Buying On Record, Helped By Short Squeeze




Following two disastrous auctions earlier this week, moments ago the US treasury sold $12 billion in 30Y paper that in an absolutely stellar auction, one which not only stoped through, but set two new records.

Spoofing Trader Who Outsmarted Citadel And HFTs Gets 3-Year Jail Sentence




Michael Coscia, the first person convicted of spoofing after it was made a crime under the Dodd-Frank Act, was sentenced to three years in prison by a federal judge in Chicago. His real crime? Taking on the HFTs, and Citadel, and winning. Now he gets to spend 3 years in prison thinking about it. And let that be a lesson to anyone else out there who dares to do the same.

"Dear Bernie Sanders Supporters..."




"Don’t let the Democratic party steal your thunder. You created this revolution because you know something is wrong with the United States, and you saw Bernie Sanders as your next best chance to fix it. You’re right - there is something wrong with America. Many things, in fact. From inequality to money’s control over politics (see: oligarchy), police brutality to never-ending wars, social inequity to economic insecurity … need I go on? Regardless, this revolution is now yours for the taking, but it will be lost if you allow yourself to vote for Hillary Clinton — or Donald Trump, for that matter."

"Gangster Islam" Takes Over Europe




"Gangster Islam," a crime wave packing prisons and overtaking Europe, is a problem the mainstream media seems unwilling to report. As The Gatestone Institute's Timon Dias explains in the following brief clip, even ordinary Europeans - for fear of being called "racist" or even being imprisoned for "hate speech" - are afraid even to talk about it.

Donald Trump Rips Ginsburg: "Her Mind Is Shot, She Should Resign" As NYT Says Trump Is Right




Following two days of inexplicable attacks by none other than a Supreme Court Justice, who said she would move to New Zealand if Trump were elected, as well as calling Trump "a faker", the Donald finally snapped and ripped Supreme Court Justice Ruth Bader Ginsburg in a Twitter message late Tuesday. "Justice Ginsburg of the U.S. Supreme Court has embarrassed all by making very dumb political statements about me," Trump wrote on his Twitter account. “Her mind is shot — resign."

Why Active Managers Are Having The Worst Year On Record




It has already been an abysmal year (and decade) for hedge funds in particular, and active asset managers in general. But how abysmal? According to Bank of America, "just 18% of large cap funds outperformed the Russell 1000 in 1H16, so far making it the worst year for active funds in history (since ’03)."


"Wrong Way Gartman"...

Oil Plummets After Gartman Covers Crude Short, Goes Long




"Following the “reversal” to the upside, we wish firstly to cover this short position AND we wish to go long of crude oil at the same time. So we are buying two units of crude this morning; one to cover the short and the other to go long. We trust we are clear."

In Unprecedented Step, Japan's Emperor Akihito Intends To Abdicate




In a year marked by surprisined "exits," resignations, and political turmoil, earlier today Japan contributed the latest shocker when Japanese Emperor Akihito, who spent much of his time on the throne "trying to heal the wounds of World War Two" according to Reuters, intends to abdicate in a few years, public broadcaster NHK and other domestic media said on Wednesday, a step that would be unprecedented in modern Japan.

Iconic Hedge Fund Sequoia Explains Why It Liquidated Its Entire Valeant Stake




"Our new leadership elected to sell our position in Valeant Pharmaceuticals, exiting completely by mid-June. Valeant was our largest position to start the year and its 80% decline through June 30 badly penalized our results. For the first half, Sequoia generated a negative 13.2% return vs. a positive 3.8% return for the S&P 500 Index."

Oil Plunges To $44 Handle After Biggest Distillates Build In 6 Months, Production Spike




Following last night's surprising inventory builds (from API), DOE once again totally dismissed the headline with a 2.55mm draw. However, the numbers are all over the place with major builds in gasoline (1.2mm) and distillates (+4.058mm - the biggest in six months). Last week's plunge in crude production (Alaska-driven) was followed by a 0.6% surge in production this week - biggest since Oct 2015. Crude prices had extended their post-API losses into the DOE data, kneejerked higher on the hesadline then plunged on production and distillates.

Loonie Surges As BOC Keeps Rate Unchanged, Cuts 2016, 2017 GDP, Blames Brexit, Wildfires, Weak Consumption




The Bank of Canada did not surprise moments ago when it kept the overnight rate at 0.5%, as expected The Bank said that the "current stance of monetary policy is still appropriate" adding that risks to inflation profile are roughly balanced. It also said that "fundamentals remain in place for a pickup in growth over the projection horizon, albeit in a climate of heightened uncertainty." Where the BOC did surprise was in its latest cut to Canada's economic outlook: the central bank now expects GDP to grow 1.3% in 2016, 2.2% in 2017, down from 1.7%, 2.3%, respectively.

Greater Fools Have Stormed The Casino




Since last Friday’s phony jobs report the casino has become so unhinged that analysis is beside the point. It is not surprising at all that the robo-machines are now gunning for the 2200 point on the S&P 500 charts. That’s what they do. What defies explanation, however, is that the several dozen humans left on Wall Street who apparently talk to Bob Pisani are actually attempting to rationalize this “breakout” of, well, madness.

End Time Persecution Is Here: Russia Just Banned Evangelism And China Has Torn Down 1000s Of Crosses

by Michael Snyder, End Of The American Dream:
We always knew that this was coming. For years, the horrifying persecution of Christians in the Middle East has made headlines all over the globe, but now we are seeing very disturbing examples of government-sanctioned persecution literally all over the planet. As you will read about below, Russia just banned virtually all types of evangelism outside of a church or religious site. And China has been tearing down thousands of crosses and has been demolishing dozens of churches in a renewed crackdown on the growth of Christianity in that nation. Overall, there are 53 countries that now have laws that restrict the Christian faith according to one recent report. When are we going to wake up and realize what is happening?
When I heard about the new law that was just passed in Russia, I was absolutely stunned. I was in Moscow just a few years after the Berlin Wall fell, and the people were very eager to hear about the Christian faith which had been brutally repressed under the Soviet regime for decades.
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Everything “They” Do Now is About Market Manipulation

by Andy Hoffman, Miles Franklin:
For some time, I have made it known that the title of my article on the day the Fed announces QE4 and/or negative interest policy, will be “Ding Dong, the Fed is Dead.” However, in reality that day passed long ago – as exemplified by the Fed’s inaction on June 15th, after having bluffed throughout May of a “potential rate hike.” To that end, my audioblog the following day was titled “Central banks are dead”; and if I had to guess, “Cliff High’s” web bots are likely uncovering the keywords “central banks”; “dead”; “lack of credibility”; “ineffective”; and “impotent” at exponentially growing rates. Which is probably why he thinks silver will reach $38/oz by July 28th – a forecast I’m watching with great intrigue, as his credibility, too, is on the line. Then again, I last weekend “called” the Cartel’s imminent demise – for the most part, due to its tenuous, record-setting silver short position. Not to “make a name for myself,” but because 14 years of research tell me the end game of Precious Metal suppression is nigh – and with it, the “window” to protect yourself. I guess we’ll just have to wait and see; however, what I’ve seen thus far, in just the first day-plus of post-“call” action, tells me I could be on to something.
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“This Is The Disaster Everyone Will Wish They Prepared For”: SoCal Megaquake Threatens 20 Million

by Mac Slavo, SHTF Plan:
Experts in business and policy have conducted a survey of the potential damage that could be expected after what scientists now say is an inevitable mega-earthquake along the San Andreas fault. It exposed many deep flaws in the system, and forecast a disaster of epic proportions for of Southern California.
Because the pressure has been building for over a century, and simply must be released, the earthquake is not just a potential event, but a liability that is sure strike sooner or later, and models show that the magnitude could easily approach 8.0.
It could easily become every prepper’s worst nightmare – an event big enough to test the shaky resolve of the entire population as they face being cut off from food, water and electricity; even a modestly large earthquake could disrupt pipelines and power lines for water supply, sewage, natural gas and more for several weeks or even months… and it would only take a matter of hours and days for riots and looting to begin.
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Japanese Money Fleeing to Gold, the “Unprintable Currency”

from McAlvany Financial:



Warning – Pokemon Go Can Spy On iPhone Users’ Google Account

by Michael Krieger, Liberty Blitzkrieg:
Several news outlets reported on this yesterday.
Here’s the Forbes take:
iPhone users of Pokemon GO, beware: the app has access to your entire Google account. That’s a major problem for fans of the game. Shockingly, there’s no warning about the extensive permissions either. For now, it’s unclear if Android owners are affected, though reports of sporadic Google account access have emerged.
To be clear, the app, as it stands, can read and write emails. It can also view your Google Docs, search history and Maps use. And your private photos. It’ll also take data that’s standard for modern apps, like IP and email addresses. Given the app by necessity has to use location data, Niantic suddenly has access to incredibly private information of millions of individuals across the world.
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How to Escape the World’s Biggest Ponzi Scheme

by Doug Casey, Casey Research:
It’s the top story in the investment world right now…
As we showed you yesterday, the S&P 500 just hit a new all-time high, topping 2,130 for the first time since May 2015. But it’s not just stocks that are ripping higher.
Bonds have quietly broken out to new all-time highs as well. Remember, a bond’s price rises when its yield falls. On Friday, the yield on the U.S. 10-year Treasury hit an all-time low of 1.37%. Yields on British (0.7%), German (-0.2%), and Japanese (-1.1%) 10-year bonds have also hit record lows over the past week.
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Flynn Effect: Trump Adviser Gives Speech in Moscow, Lt. Gen. and Former DIA Chief Being Vetted for Trump’s VP Slot

from Rogue Money:
While the U.S. media focused on the tragic police killings in Dallas and the European press the Euro2016 matches and NATO’s summit in Warsaw, some subtle unofficial diplomacy was underway last week in Moscow.
Carter Page, an adviser to the Donald J. Trump presidential campaign and a former manager in the Moscow offices of Merrill Lynch, gave a speech at the New Economic School in the Russian capital. To the consternation of The Washington Post, Page called for dialogue and mutual respect rather than continued Cold War 2.0 confrontation with Russia:
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Eating Selenium-Rich Foods Including Shellfish, Nuts and Onions Decreases the Risk of Liver Cancer, Say Scientists

by Amy Goodrich, Natural News:
Liver cancers are on the rise in developing countries. Now, more than ever, prevention measures are becoming crucial in the battle against liver cancer.
Due to late-stage diagnoses and limited treatment options, mortality numbers are very high, and liver cancer is the second most common cause of cancer deaths worldwide. In 2012, the disease claimed the lives of nearly 746,000 people globally. This is just over 9 percent of all cancer-related deaths that year.
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