Dollar Dump Sparks Safety Scramble For Bonds & Bullion

Submitted by Tyler Durden on 11/14/2014 - 16:05
Stocks were somewhat of a sideshow to the moves in Bonds, commodities, and FX today. Trannies (Airlines) and Nasdaq (AAPL) led on the week with Small Caps the laggard and Dow/S&P not much better. A 6-7bps plunge in yields from around 10am ET today left Treasury yields only 0-2bps higher on the week. The USD dumped at around the same time, cracking back to unchanged on the week as USDJPY failed at 117. While oil prices lifted modestly today, WTI Crude fell 3.2% this week - 7th week in a row - longest losing streak since 1986 (the last time US oil production was above 9 mm bbl/d). Silver screamed over 7% off its intraday lows today (+4.1% on the day - the best day in 5 months) and gold surged 2.4% on the day (4.1% off the lows) for its 2nd best day in 5 months.  VIX (higher on the week), HY credit, and TSYs all diverged notably on the week from equity 'strength' but today's moves were seemingly driven by Swiss Gold Initiative rumors. It's a Friday so 330ET saw the standard ramp to grab the S&P green and record close (+0.02%)

"No, Taxes Are Not What We Pay For Civilized Society"

Submitted by Tyler Durden on 11/14/2014 - 15:16 “Taxes are what we pay for civilized society.” The famous quote by US Supreme Court Justice Oliver Wendell Holmes Jr. is inscribed above the entrance to the headquarters of the IRS. Most people don’t have a clue what he meant, or in what context the statement was made. They simply parrot it around to justify the state’s racketeering behavior. The logic is as twisted as saying “war is the price we pay for peace” or “debt is the price we pay for recovery.” They’re all logical fallacies, and assertions backed by zero objective evidence. This is not how a ‘civilized society’ conducts itself.
 

Depression-Level Collapse In Demand: In Historic First, Glencore Shuts Coal Mines For 3 Weeks

Submitted by Tyler Durden on 11/14/2014 - 14:25 In a historic move showing just how profound the collapse in global commodity demand and trade is, earlier today the Sydney Morning Herald reported that Australia's biggest coal exporter Glencore, which last year concluded its merger with miner Xstrata creating the world's fourth largest mining company and world's biggest commodity trader, will suspend its Australian coal business for three weeks "in a move never before seen in the Australian market, to avoid pumping tonnes into a heavily oversupplied market at depressed prices." Putting this shocking move in context, it is something that was avoided even during the depths of the global depression in the aftermath of Lehman's collapse, and takes place at a time when the punditry will have you believe that the US will decouple from the rest of the world and grow at 3% in the current quarter and in 2015.

Stephen Roach Warns The Fed's Fixation With Markets Is "A Potentially Deadly Trap"

Submitted by Tyler Durden on 11/14/2014 - 13:19 The Fed remains fixated on financial-market feedback – and thus ensnared in a potentially deadly trap. Fearful of market disruptions, the Fed has embraced a slow-motion exit from QE. By splitting hairs over the meaning of the words “considerable time” in describing the expected timeline for policy normalization, Fed Chair Janet Yellen is falling into the same trap. Such a fruitless debate borrows a page from the Bernanke-Greenspan incremental normalization script of 2004-2006. Sadly, we know all too well how that story ended.


 

Hyperinflation in the U.S.?

by Dr, Jeffrey Lewis, Silver-coin-investor:
“WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives.” -General Smedley Butler, USMC
“Let me issue and control a nation’s money and I care not who writes the laws.” -Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild
Recently I have been discussing with my cousin, who collects paper currency, which holds better value: gold/silver coin, or paper currency.
Read More @ Silver-coin-investor.com

Brics GDP bigger than G7 in purchasing power: Putin

from The BRICS Post:
Russian President Vladimir Putin on Friday said Moscow wants to work with other countries to “remove the imbalances in the global economy”.
In Vladivostok on Friday, Putin said the GDP of the BRICS countries calculated at the purchasing power parity is greater than that of the G7, the Group of major industrialized nations.
“As far as I know, the GDP of BRICS is $37.4 trillion, while that of the G7 is $34.5 trillion. And if we go and say: ‘No, thank you, we are going to do this and that here on our own, and you can do it the way you want it,’ this will only add to the imbalances. If we are really set to resolve some issues, we should do that together,” he told Russian agency Itar Tass.
Read More @ TheBRICSPost.com

OBAMA IS CURRENTLY PLACING THE U.S. IN A CORPORATE CONTROLLED POLICE STATE DICTATORSHIP

by Dave Hodges, The Common Sense Show:
While the United States is fully preoccupied with global crises ranging from the fight against ISIS in Iraq and Syria, the spread of Ebola and the conflict in Ukraine, there is another development on the world stage which threatens the economic health of every single American and American based business. Specifically, I am referencing the Trans Pacific Partnership. The protocols of the TPP establishes a free-trade zone/bloc stretching from Vietnam to Chile and Japan. The most draconian free trade agreement in history includes nearly a billion people which encompass almost 40% of the world’s economy. Since Obama failed to fast-track the TPP into law last year, he has made amazing progress and America is nearing its fate with destiny
As America races toward her date with destiny, there is yet another “fundamentally transforming” event coming her way and that event is known as the Trans-Pacific Partnership (TPP).
Read More @ Thecommonsenseshow.com

Stockman – This Will Dislocate Every Market In The World

from KingWorldNews:
Eric King: “What the Bank of Japan just did, you obviously had a big piece that you put together on that (unprecedented move). Aren’t Europe and the United States going to have to respond to that with their own money printing? They can’t just let Japan lead the race to the bottom (in the currency wars). And doesn’t that force the other Asian countries to print more money as well?”
Stockman: “Exactly. This is getting downright stupid. As I said the other day, ‘The Bank of Japan jumped the shark.’ The idea that they are going to create balance sheet, or liquidity, at the rate $3 trillion a year, when you look at the equivalent in terms of a U.S. sized economy, when they have already massively expanded their balance sheet, is almost hard to believe….
Victor Sperandeo continues @ KingWorldNews.com

Congress Passes Keystone XL Pipeline Bill, Senate Can't Block, Obama Veto To Come?

Submitted by Tyler Durden on 11/14/2014 - 12:57 As somewhat expected the House passed the Keystone XL Pipeline approval bill:
*HOUSE PASSES KEYSTONE APPROVAL BILL 252-161; SENATE VOTE NOV 18
It is relatively clear that the Senate does not have the votes to be able to overturn and thus it will be forced on to President Obama's desk - "to veto" or "not to veto."