For those to whom this comes as a surprise, following the periodic jaunts of Tim Geithner to Europe explaining just what is truly important in life, not to mention Obama's daily phone calls to Mario Monti, we feel truly sorry:
- "Obama doesn't want anything on a macroeconomic scale that is going to rock the global economy before Nov. 6," a senior EU official told
- "As far as European leaders are concerned, they don't want Romney, so they're probably willing to do anything to help Obama's chances," said the source, an EU official involved in finding solutions to the debt crisis.
Dalio On Gold: Buffett Is Making A Big Mistake
We discussed Bridgewater's Ray Dalio in depth late last week
and his historical perspective on the world we are living through. It
appears CNBC has found this intriguing too and the largest hedge fund
manager in the world has been espousing his views all morning. Most
notably he very concerned at the possibility for social unrest (just as
we have pointed out again and again) highlighting the rise of Hitler in 1933 and its parallels to the current social disruptions around the world as global economies sufffer painful deleveragings. His suggestion is that gold "should be part of everybody's portfolio" as he explains the reality of the endgame of fiat monetary systems. As far as Warren Buffett's distaste for the yellow metal, he opines "I think he is making a big mistake."Bill Gross Summarizes Main Street's "Benefits" From QEternity
The old 'new normal' bond guru succinctly sums up Bernanke's failed logic with QEternity in 80 characters...Gross: Fed buys Mtges but banks fail to pass through lower yields to future home buyers.
— PIMCO (@PIMCO) September 21, 2012
Coming to an area near you... sooner then you think...
Athens Municipality Runs Out Of Cash; Suspends All Operations
Remember when we said cash flow is always more important than diluting the M2 (the Fed is great at the latter, powerless at the former)? Here's why: The municipality of Acharnes in northern Athens has decided to suspend all of its operations after running out of money. The municipal council met on Thursday night and voted to stop providing anything other than basic services because of its inability to pay employees’ wages and regular expenses. In Nintendo Donkey Kong Game and Watch parlance: Game over.
Economic Effects of QE Will Be Realized Soon Says The Markets
Eric De Groot at Eric De Groot - 2 hours ago
Agreed, the message of the market confirms that the economic effects of
QE3 will be realized soon. That's why suggest that the equity bears read
Jim's comments below. Growing trend energy behind the trend implies a
steady rotation risk-on rotation (chart) into equities as long as
the dominant cycle permits. Chart: Risk-on versus...
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content, and more! ]]
Video: I Am Long Commodities & Short Stocks
Admin at Jim Rogers Blog - 3 hours ago
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
Total Donations over the last 3 1/2 years. approx $165.00 (Thank You).
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Western World: The Government Makes Up 50% Of The Economy
Admin at Marc Faber Blog - 3 hours ago
If we have an economic crisis in the Western world it’s because the
government makes up 50 percent or more of the economy. This is a cancer
that is taking away people’s freedom. - *in CNBC*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Harvard Losing Out to South Dakota in Graduate Pay: Commodities
Eric De Groot at Eric De Groot - 3 hours ago
Econ 101 explains why Harvard University 's graduates are earning less than
those from the South Dakota School of Mines & Technology; The price of
labor moves higher when growing demand creeps up fixed or shrinking
supply. While this trend is a global phenomenon, don’t expect the local
newspapers to write about it or the students getting full rides to Mines &
Technology...
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content, and more! ]]
Exclusive: U.S. mortgage task force to act soon
Eric De Groot at Eric De Groot - 3 hours ago
More political arm waving designed to change perceptions and garner votes.
Headline: Exclusive: U.S. mortgage task force to act soon NEW YORK
(Reuters) - The mortgage task force formed by President Barack Obama to
probe misconduct that contributed to the financial crisis will soon take
legal action, New York Attorney General Eric Schneiderman said on Thursday.
Schneiderman,...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]According To The Knee-Jerk Market, South Africa Mines Silver
Moments ago, a stray headline crossing Bloomberg was the catalyst for violent selling across the precious metal complex. The headline in question is this:- SOUTH AFRICA GOLD PRODUCERS TO CONSIDER BRINGING FWD WAGE TALKS
Gold Hits All Time Highs In Euro, Swiss Franc And Brazilian Real
Gold has now reached all-time record highs in terms of the Euro, Swiss Franc, and Brazilian Real. Gold in USD is up 90% from the March 2009 equity lows and up 50-65% in the rest of the major fiat currencies.
Art Cashin And Dick Fisher Expose The Farce That America's Corrupt And Bought Congress Has Become
Dick Fisher speaks: "Just recently, in a hearing before the Senate, your senator and my Harvard classmate, Chuck Schumer, told Chairman Bernanke, “You are the only game in town.” I thought the chairman showed admirable restraint in his response. I would have immediately answered, “No, senator, you and your colleagues are the only game in town. For you and your colleagues, Democrat and Republican alike, have encumbered our nation with debt, sold our children down the river and sorely failed our nation. Sober up. Get your act together. Illegitimum non carborundum; get on with it. Sacrifice your political ambition for the good of our country—for the good of our children and grandchildren. For unless you do so, all the monetary policy accommodation the Federal Reserve can muster will be for naught.”"Gold A Fistful Of Dollars Away From 2012 Highs
At
$1787, gold is rapidly closing in on its recent nemesis-like $1800
level as it appears Dalio's 'expected path of least resistance' for
Central Banks - i.e. QEternity - is being priced in from a balance-sheet
'stock' perspective (as opposed to equities needing the 'flow')...
Just as Bernanke must be hoping, so (real money) hard assets wonder -
is fourth time the charm?First Spanish Bailouts Conditions Revealed: Pension Freeze, Retirement Age Hike
As we reported first thing this morning, Spain, while happy to receive the effect of plunging bond yields, most certainly does not want the cause - requesting the inevitable sovereign bailout. To paraphrase Italy's undersecretary of finance, Gianfranco Polillo: "There
won’t be any nation that voluntarily, with a preemptive move, even if
rationally justified, would go to an international body and say -- ‘I
give up my national sovereignty." He is spot on. However,
the one thing that will force countries to request a bailout is the
inevitable outcome of soaring budget deficits: i.e., running out of cash
(as calculated here previously, an event Spain has
to certainly look forward to all else equal). Which simply means that
sooner or later Mariano Rajoy will have to throw in the towel and push
the red button, knowing full well it most certainly means the end of
his administration, and very likely substantial social and political
unrest for a country which already has 25% unemployment, all just to
preserve the ability to fund its deficits, instead of biting the bullet
and slashing public spending (and funding needs), which too would
cause social unrest - hence no way out. But why would a bailout
request result in unrest? Reuters finally brings us the details of what
the Spanish bailout would entail, and they are not pretty: "Spain is
considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package, sources
with knowledge of the matter said...The accelerated raising of the
retirement age to 67 from 65, currently scheduled to take place over 15
years, is a done deal, the sources said. The elimination of an inflation-linked annual pension hike is still being considered."Point Out The Recovery On These Charts
The last couple of months have been characterised by some weak but 'relatively positive' surprises in macro economic data compared to dismal expectations; but that rising momentum has begun to fade very recently. Sagging domestic growth and weak external demand have created noticeable slowdowns in the industrial production and manufacturing sector. This, as Bloomberg Brief notes, has been the area of the economy that has been the primary driver of growth throughout the recovery and represents the greatest risk to the current economic outlook for sub-trend growth at or below 2 percent. As Joseph Brusuelas points out, these disappointing charts indicate, fiscal gridlock aside, the deterioration in the industrial sector is a 'dagger pointed straight at the heart of a weak cyclical expansion'.
Daily US Opening News And Market Re-Cap: September 21
As we enter the North American cross over, equity indices in Europe are seen higher, supported by telecom and health care sectors. There was little in terms of fresh news flow and instead the price action was largely driven by expiration of various futures and option contracts. On that note, it is not only the quadruple witching day, but also quarterly S&P rebalancing. As such, brief spells of volatility will be observed as market participants close out remaining positions. Looking elsewhere, range bound price action was observed in the fixed income market, where the benchmark German Bund is currently trading in close proximity to 140.00 level. Talk of demand from Middle Eastern accounts in EUR/USD earlier in the session saw the pair trip buy stops above 1.3000 and then above 1.3025. GBP/USD was a direct beneficiary of USD weakness, which in turn pushed the pair above 1.6300 level (touted option barrier). Going forward, the second half of the session will see the release of the latest CPI from Canada.Police Open Fire On "Prophet Protesters" In Pakistan, One Killed
The
torching of US embassies across the Muslim world may have been put on
the backburner, perhaps driven by the withdrawal of virtually all
embassy personnel across the affected regions, but the anti-US
sentiment, whether predicated by some movie or not - and oddly enough
nobody appears to have set any French embassies on fire following the Prophet Mohammad cartoon which
appeared earlier this week, continues. The latest affected country:
Pakistan, where "police opened fire on rioters who were torching a
cinema during a protest against an anti-Islam film Friday, killing one
man on a holiday declared by the government so that people could demonstrate against the video."
So, the government specifically creates a "holiday" to protest the
video then shoots people who protest the video? Does anyone else get the
feeling that all authorities here are urgently doing their best to
preempt a war? Was there a secret G-50 meeting in which it was decided
the world was too overpopulated and a war was desperately needed? Surely
that is ludicrous: just look at the natural growth that the world
experienced after the first great depression unaided and unabetted by
such trivialities as world war.Frontrunning: September 21
- Europe’s crisis will be followed by a more devastating one, likely beginning in Japan. (Simon Johnson)
- Porsche, Daimler Indicate Europe’s Car Crisis Spreading (Bloomberg)
- No progress in Catalonia-Madrid talks (FT)
- Hilsenrath speaks: Fed's Kocherlakota Shifts on Unemployment (WSJ) - luckily QEternity made both obsolete
- Lenders Reportedly Consider New Greek Haircut (Spiegel)
- Fed Officials Highlight Benefits of Bond-Buying (WSJ)
- ESM to Launch without Leverage Vehicle Options (WSJ)
- Japanese companies report China delays (FT)
- Borg Says Swedish Taxes Can’t Go Into Ill-Managed European Banks (Bloomberg)
- Greek Leaders Struggle With Spending Reductions (Bloomberg)
- Asian Stocks Rise as iPhone 5 Debut Boosts Tech Shares (Bloomberg)
- China government's hand seen in anti-Japan protests (LA Times)
Overnight Sentiment: Rumors Regurgitated, Refuted
The overnight session has been dead, leading to continued trading on the two regurgitated rumors appearing overnight, one coming from the FT that the EU is in "fresh" talks over a Spanish rescue plan - something which is not news, but is merely the occasional catalyst to get algos snapping up EURUSD and to keep it from sliding far below the 1.3000 barrier. This rumor has subsequently been swatted down later when Italy's undersecretary of finance, Gianfranco Polillo, in an interview in Rome, repeated what has been known to most for over two months, namely that Italy and Spain won’t request bailouts unless there a new surge in bond yields (just as we explained first thing in August), and adding that "There won’t be any nation that voluntarily, with a preemptive move, even if rationally justified, would go to an international body and say -- ‘I give up my national sovereignty." A surprising moment of lucidity and truth for a European. Naturally the reemergence of the rumor is supposed to draw attention away from the real news, which is that broke Catalonia is ever closer to bluffing its independence in exchange for a bailout, or else. The other real news is that as Confidencial reported, the Spanish government has asked Santander, Banco Bilbao Vizcaya Argentaria and CaixaBank to take 30% stake in the Spanish bad bank, something which will hardly make shareholders in these companies happy for the simple reason that no bank in Spain is "not bad" if the current rate of deposit outflows continues. Finally, a second rumor appearing late yesterday is that Greek lenders are considering a new Greek bond haircut. This too has since been refuted when German Finance Ministry spokesman Martin Kotthaus told reporters in Berlin at a regular press conference that this report is without basis. In other words, as we said, rumors refuted, leaving us with essentially no real news overnight.Apple Creates New Job Category: Professional, Like, Line-Waiters
Some have argued that iPhone 5 will single-handedly save the world's economy (as we 'discussed' here)
and indeed it seems an entire new category of employment has been
created thanks to the pathetic desperation of so many needing the new
'old' iPhone. As Bloomberg BusinessWeek
reports, among the thousands of people expected to wait for hours
outside of Apple's stores today, at least a couple hundred of them will
be paid just to stand there. TaskRabbit appears to be the pre-emptive
winner in 'arranging' these 'waiting-in-line' deals as one 'queuer'
stated "I am a professional line waiter." Of course,
the conspiracist would wonder aloud whether these crowd-fillers and
line-waiters are indirectly 'purchased' to create more buzz by the
demigod itself. Nevertheless, what an inspiration these Americans are: "I've done other waiting-in-line things. I think it's going to end up being, like, my specialty."Today’s Items:
Janet Incompetano told a Senate Homeland
Security and Governmental Affairs Committee that a blatantly
unconstitutional executive order is close to completion. Instead of
protecting Americans, Obama’s unconstitutional Executive Order will
allow the NSA and
the Department of Homeland Insecurity to extend their surveillance
capability. There you have it, unlimited surveillance, the NDAA, the TSA, and 1.6 billion bullets and we sadly have the SS in place folks.
John Embry, as with many others, believe we are in the early stages of a global ‘Weimar’
event. Central banks, like the FED, are printing above and below the
table and that there is so much currency, that it is simply both mind
boggling and mind bottling. The US, Europe, Japan, and even China
are in big trouble as the global economy is far weaker than anybody
will acknowledge at this point. So, despite the paper manipulations,
this is remarkably bullish for physical gold and silver. No wonder,
there is historic suppression of both gold and silver taking place.
With that said, after preparing, keep stacking physical and ignore the
paper market noise.
While repeatedly lying to the American
people using a sycophant media, the Obama administration has clearly has
been on an active campaign of murder and terror abroad. We have the U.S. Ambassador to the UN lying on TV stating the attacks were spontaneous when multiple sources show otherwise. We have the US secretly arming Al-Qaeda in Libya and other nations as innocent people are killed. We have Obama paling around with the Muslim Brotherhood when they have violently sworn to destroy the US. Closer to home, we have people dying on the Mexican border thanks to guns provided by the Obama Administration. Oh, lets not forget the National Defense Authorization Act and 1.6 Billion bullets.
Here we go again… At a number of
385,000, more Americans “Unexpectedly” filed for unemployment benefits
than was forecast. Also, another 60,700 dropped off the job cliff as
their emergency and extended payments ended. I can see it now…
The Labor department will blame the recent Mid-East violence for the
increase in unemployment claims because of employer’s perceived mistrust
of their employees.
While it is easy to blame politicians and
bankers for the unemployment problem in the US. Sadly, for many, the
problems lie, not within the stars, but within themselves. Employers
are having a more difficult time finding people who can simply pass a drug test, read and write, have a work ethic and sense of professionalism, or even show up for work.
Eating genetically modified corn, courtesy
of Monsanto, is akin to a slow suicide. In addition, Monsanto Roundup
weedkiller has the same effects according to a new cancer study.
Scientists found that rats exposed to even the smallest amounts,
developed tumors, severe liver and kidney damage, and died. So, the
question is, when will arrest warrants be issued for the higher
executives at Monsanto for attempted mass murder? Oh, wait, Eric
Holder is Attorney General… Never mind. At least France has ordered a probe.
Total Donations over the last 3 1/2 years. approx $165.00 (Thank You). Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
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