Submitted by Tyler Durden on 09/28/2015 - 07:20
Update: And there it is: GLENCORE DEBT INSURANCE COSTS SURGE TO RECORD HIGH; 5-YR CREDIT DEFAULT SWAPS RISE 154 BASIS POINTS FROM FRIDAY'S CLOSE TO 708 BASIS POINTS
Those who listened to our reco to buy Glencore CDS at 170 bps in March 2014 can take the rest of the year off. As of this moment, GLEN Credit Default Swap were pushing on 600 bps, 4 times wider, and on pace to take out the 2011 liquidity crunch highs. After that, it's smooth sailing to all time wides and the start of a self-fulfilling prophecy which leads to the Companys's IG downgrade and the collapse of trillions in derivative notionals as what may be the trading desk of the biggest commodity counterparty quietly goes out of business.
With $19 Billion In Derivative Liabiltiies, Some Observations On Glencore's "Counterparty Risk"
Submitted by Tyler Durden on 09/28/2015 - 09:28This Is When Junk Bonds Go Kaboom!
Submitted by Tyler Durden on 09/28/2015 - 09:12 We have been warning for months that high-yield bonds have decoupled from equity markets, just as they did in 2007/8, and the credit cycle's turning will inevitably flow through to crush the only thing left supporting stock valuations - the irrational non-economic corporate buyback-er. However, as we detail below, time's running out and it’s getting tougher out there for our QE and ZIRP-coddled corporate junk-bond heroes.RANSQUAWK WEEK AHEAD VIDEO: 28th September 2015 - Friday sees the latest nonfarm payroll report from the US, with surveyed expectations for the...
Submitted by RANSquawk Video on 09/28/2015 - 10:02· Friday sees the latest nonfarm payroll report from the US, with surveyed expectations for the reading at 200k
· This week sees the advance reading of Eurozone and German CPI for September, which may see added attention given recent suggestions the ECB may expand QE
by Pater Tenebrarum, Contra Corner:
James Grant, Wall Street expert and editor of the investment journal «Grant’s Interest Rate Observer», warns of ever more extreme central bank policies and bets on the comeback of gold.
The global financial markets are under severe stress. The postponed interest rate hike in the United States, the fast cooldown of the Chinese economy and the crash in the commodity complex are causing a great amount of unease among investors. Fear is growing that the world slips into recession. «Central bank policy is intended to paper over the cracks in the systems. Seven years after the outbreak of the financial crisis we’re paying for this with a lack of growth», says James Grant. The sharp thinking editor of the iconic Wall Street newsletter «Grant’s Interest Rate Observer» draws worrisome parallels between the command based central planning of the Chinese economy and the economic policies in the West. He also doubts that Fed Chair Janet Yellen is the right fit for the top job at the world’s most powerful central bank. Looking for protection he points to gold and shares of gold miners
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James Grant, Wall Street expert and editor of the investment journal «Grant’s Interest Rate Observer», warns of ever more extreme central bank policies and bets on the comeback of gold.
The global financial markets are under severe stress. The postponed interest rate hike in the United States, the fast cooldown of the Chinese economy and the crash in the commodity complex are causing a great amount of unease among investors. Fear is growing that the world slips into recession. «Central bank policy is intended to paper over the cracks in the systems. Seven years after the outbreak of the financial crisis we’re paying for this with a lack of growth», says James Grant. The sharp thinking editor of the iconic Wall Street newsletter «Grant’s Interest Rate Observer» draws worrisome parallels between the command based central planning of the Chinese economy and the economic policies in the West. He also doubts that Fed Chair Janet Yellen is the right fit for the top job at the world’s most powerful central bank. Looking for protection he points to gold and shares of gold miners
Read More
President Obama Explains To The UN Why The World's Chaos Is Not His Fault - Live Feed
Submitted by Tyler Durden on 09/28/2015 - 10:01 With The UN's Ban earlier commenting that "Syria is out of control" and demanding that Russia, US, Saudi, iran and Turkey cooperate, it will be interesting to see what tack President Obama takes in his address this morning...Nasdaq "Death Crosses" For First Time Since 2012
Submitted by Tyler Durden on 09/28/2015 - 09:43 With Biotechs in a bear market, and Nasdaq having dropped back into negative territory for 2015, the year's leading equity index has now joined the rest of the majors and completed its "death cross."Bill Dudley Gives 2015 Rate Hike Odds, Even As He Says "Not Calendar Guidance"
Submitted by Tyler Durden on 09/28/2015 - 08:51 When is a 'date' not a 'date'? When a Fed member says so. The Fed speaker confusion-carpet-bombing contonues this morning with Bill Dudley who offered the following "insight":*DUDLEY: HE EXPECTS FED PROBABLY WILL RAISE RATES LATER THIS YR (so a date?)
*DUDLEY: THAT'S NOT CALENDAR GUIDANCE, THAT'S DATA-DEPENDENT (not a date?)
His double-speak has sent stocks and bonds lower and USD higher for now...
Personal Income Rises At Slowest Pace In 5 Months As Savings Rate Drop
Submitted by Tyler Durden on 09/28/2015 - 08:39 Personal income rose at 0.3% MoM in August, the weakest growth and biggest miss since March's tumble. At the same time spending rose 0.4% MoM, slightly more than expected. Of course this relative shift means the savings rate declined from 4.7% to 4.6%, which is to be cheered by economic models the emphasize spending over saving.Commodity Carnage Continues Amid Fears Of Glencore Liquidation
Submitted by Tyler Durden on 09/28/2015 - 08:23 Despite a relatively unchanged US Dollar, commodities across the board are under significant (and seemingly coordinated) pressure this morning. It appears that the key selling began as Europe opened and the carnage in massive commodity group Glencore began to materialize. Glencore CDS is now above 700bps (up 154bps today) and stocks down almost 30% today...Dying Petrodollar Ripples Through Markets As Asset Managers Bemoan Loss Of Saudi Bid
Submitted by Tyler Durden on 09/28/2015 - 08:11 "It was our Black Monday. The big question is when will they come back, because managers have been really quite reliant on Sama for business in recent years."Frontrunning: September 28
Submitted by Tyler Durden on 09/28/2015 - 07:50- Headline winner: "Read Beyond Massive Job-Cuts Headlines: Labor Market Is Fine" (BBG)
- And speaking of lies: The More Yellen Talks Up Inflation, the Less Traders Believe Her (BBG)
- How Some Investors Get Special Access to Companies (WSJ)
- Victorious Catalan separatists claim mandate to break with Spain (Reuters)
- Russia seizes initiative in Syria (Reuters)
- Former VW boss Winterkorn investigated for fraud (Reuters)
- Investors Pull Back From Junk Bonds (WSJ)
US Futures Resume Tumble, Commodities Slide As Chinese "Hard-Landing" Fears Take Center Stage
Submitted by Tyler Durden on 09/28/2015 - 06:47 It was all about China once again, where following a report of a historic layoff in which China's second biggest coal producer Longmay Group fired an unprecedented 100,000 or 40% of its workforce, overnight we got the latest industrial profits figure which plunging -8.8% Y/Y was the biggest drop since at least 2011, and which the National Bureau of Statistics attributed to "exchange rate losses, weak stock markets, falling industrial goods prices as well as a bigger rise in costs than increases in revenue." In not so many words: a "hard-landing."Andy Hoffman from Miles Franklin is back to document the current state of the collapse of the global economy – and the situation is only getting worse by the day. From Caterpillar to Glencore Mining, the future is as clear as it is bleak.
And most Americans still have absolutely NO IDEA what’s in store for them as the FED dominoes of fraud begin falling. TRILLIONS have been printed with no “trickle down” in sight. Meanwhile, there is plenty of paper silver and gold, and precious little PHYSICAL – even as the 1980 inflation adjusted all-time high for silver passes $600 per ounce. The sheeple sleep snug in their beds certain that today’s debt based paradigm will continue forever. They are in for a rude awakening.
from Paul Craig Roberts:
Washington’s IQ follows the Fed’s interest rate — it is negative. Washington is a black hole into which all sanity is sucked out of government deliberations.
Washington’s failures are everywhere visible. We can see the failures in Washington’s wars and in Washington’s approach to China and Russia.
The visit of Chinese President Xi Jinping, was scheduled for the week-end following the Pope’s visit to Washington. Was this Washington’s way of demoting China’s status by having its president play second fiddle to the Pope? The President of China is here for week-end news coverage? Why didn’t Obama just tell him to go to hell?
Read More
Washington’s IQ follows the Fed’s interest rate — it is negative. Washington is a black hole into which all sanity is sucked out of government deliberations.
Washington’s failures are everywhere visible. We can see the failures in Washington’s wars and in Washington’s approach to China and Russia.
The visit of Chinese President Xi Jinping, was scheduled for the week-end following the Pope’s visit to Washington. Was this Washington’s way of demoting China’s status by having its president play second fiddle to the Pope? The President of China is here for week-end news coverage? Why didn’t Obama just tell him to go to hell?
Read More
from grindall61:
by Tom Chatham, Alt-Market:
In the coming days we will ultimately see very many problems and disasters that take many by surprise. This article is not to diminish the potential severity of these coming events but to help you realize the more important aspects of these events.
If you are on the ocean and your boat gets a hole in it, you will likely sink eventually if you cannot prevent the boat from filling with water. That event in itself may seem like a disaster at the time but when taken in context with other events taking place, how serious is that hole?
The future will provide you with many events that you must navigate and to do so you must be able to see them clearly for what they are and determine which is the most dangerous.
Read More…
In the coming days we will ultimately see very many problems and disasters that take many by surprise. This article is not to diminish the potential severity of these coming events but to help you realize the more important aspects of these events.
If you are on the ocean and your boat gets a hole in it, you will likely sink eventually if you cannot prevent the boat from filling with water. That event in itself may seem like a disaster at the time but when taken in context with other events taking place, how serious is that hole?
The future will provide you with many events that you must navigate and to do so you must be able to see them clearly for what they are and determine which is the most dangerous.
Read More…
from TheAlexJonesChannel:
from Zen Gardner:
Don’t people even think anymore? How can they swallow this wholesale engineered fabricated snowstorm of distorted disinformation and not see through it?
Just look squarely at this instantly appearing, highly sophisticated, fully mobile in flashy new vehicles, heavily armored ISIS machine. They’re a well supplied and coordinated organization of a supposedly bunch of radicalized Islamic rebels, pulling recruits out of the war torn rubble of a devastated Middle East almost overnight. And the supply of not just weapons but the coordination of very difficult food, water and medical logistics.
Read More…
Don’t people even think anymore? How can they swallow this wholesale engineered fabricated snowstorm of distorted disinformation and not see through it?
Just look squarely at this instantly appearing, highly sophisticated, fully mobile in flashy new vehicles, heavily armored ISIS machine. They’re a well supplied and coordinated organization of a supposedly bunch of radicalized Islamic rebels, pulling recruits out of the war torn rubble of a devastated Middle East almost overnight. And the supply of not just weapons but the coordination of very difficult food, water and medical logistics.
Read More…
by Robert Hunziker, Counter Punch:
Some nuclear advocates suggest that wildlife thrives in the highly-radioactive Chernobyl Exclusion Zone, animals like it, and not only that, a little radiation for anybody and everybody is harmless and maybe good, not bad. This may seem like a senseless argument to tackle were it not for the persistence of positive-plus commentary by nuke lovers. The public domain deserves better, more studied, more crucial answers.
Fortunately, as well as unfortunately, the world has two major real life archetypes of radiation’s impact on the ecosystem: Chernobyl and Fukushima. Chernobyl is a sealed-off 30klm restricted zone for the past 30 years because of high radiation levels. Whereas, PM Abe’s government in Japan has already started returning people to formerly restricted zones surrounding the ongoing Fukushima nuclear meltdown.
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Some nuclear advocates suggest that wildlife thrives in the highly-radioactive Chernobyl Exclusion Zone, animals like it, and not only that, a little radiation for anybody and everybody is harmless and maybe good, not bad. This may seem like a senseless argument to tackle were it not for the persistence of positive-plus commentary by nuke lovers. The public domain deserves better, more studied, more crucial answers.
Fortunately, as well as unfortunately, the world has two major real life archetypes of radiation’s impact on the ecosystem: Chernobyl and Fukushima. Chernobyl is a sealed-off 30klm restricted zone for the past 30 years because of high radiation levels. Whereas, PM Abe’s government in Japan has already started returning people to formerly restricted zones surrounding the ongoing Fukushima nuclear meltdown.
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from USAWatchdog:
Former top Wall Street banker Nomi Prins says we are headed for a calamity and the “Fed put themselves in a catch 22” situation with a very bad policy to bailout the banks.
Former top Wall Street banker Nomi Prins says we are headed for a calamity and the “Fed put themselves in a catch 22” situation with a very bad policy to bailout the banks.
by Chris Powell, GATA:
Dear Friend of GATA and Gold:
With his latest commentary, “Buy Gold While You Still Can,” market analyst Chris Martenson fully endorses the market manipulation account of the gold market, citing documents and developments GATA has been citing for years — and does so without, of course, a single reference to GATA.
As Plato said — or maybe it was Yogi Berra — “First they ignore you, then they laugh at you, then they fight you, and then they go back to ignoring you, claiming that everybody knew all along what you were trying to tell them.”
Read More
Dear Friend of GATA and Gold:
With his latest commentary, “Buy Gold While You Still Can,” market analyst Chris Martenson fully endorses the market manipulation account of the gold market, citing documents and developments GATA has been citing for years — and does so without, of course, a single reference to GATA.
As Plato said — or maybe it was Yogi Berra — “First they ignore you, then they laugh at you, then they fight you, and then they go back to ignoring you, claiming that everybody knew all along what you were trying to tell them.”
Read More
from Zero Hedge:
Having warned that “we are on the precipice of a liquidation in emerging markets like the fourth quarter of 1997,” Passport Capital’s John Burbank sits down with RealVisionTV to discuss why “the Fed would eventually be forced into a fourth round of quantitative easing to shore up the economy.” Being among 2015’s best performing hedge funds, successfully navigating this turmoiling unwind of the Fed’s efforts to “mean-revert” the world’s assets back to normal, Burbank concludes,“nothing’s safe,” no matter what The Fed does, “the liquidity of everything is being taken down.”
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Having warned that “we are on the precipice of a liquidation in emerging markets like the fourth quarter of 1997,” Passport Capital’s John Burbank sits down with RealVisionTV to discuss why “the Fed would eventually be forced into a fourth round of quantitative easing to shore up the economy.” Being among 2015’s best performing hedge funds, successfully navigating this turmoiling unwind of the Fed’s efforts to “mean-revert” the world’s assets back to normal, Burbank concludes,“nothing’s safe,” no matter what The Fed does, “the liquidity of everything is being taken down.”
Read More
Under the spending deals cut by House Speaker John Boehner (R.-Ohio), the federal government’s debt has climbed $3,968,445,855,460.28, according to debt numbers published by the U.S. Treasury.
That works out to an increase in the debt of $26,627.43 per each of the 149,036,000 people who, according to the Bureau of Labor Statistics, had a full- or part-time job in the United States as of August 2015.
When the first spending deal made by Speaker Boehner took effect on March 4, 2011, the total federal debt was $95,162.43 per the 149,036,000 workers who had jobs as of this August. It now equals $121,789.86 for each of those workers.
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filed under (unt
by Amy Chozick, New York Times:
Hillary Rodham Clinton said on Sunday that she could not fully explain the discovery of a string of work emails sent from her personal account more than two months earlier than when she has said she began using that address as secretary of state. But she said she hoped that voters would look past what she called the “drip, drip, drip” of the furor over her emails.
“There was a transition period. You know, I wasn’t that focused on my email,” Mrs. Clinton said on NBC’s “Meet the Press” when asked about emails sent from her personal account in her first two months after taking office in January 2009. She had previously said she did not begin using a clintonemail.com address for State Department business until that March.
The State Department said on Friday that Mrs. Clinton had exchanged emails in late January and February 2009 with Gen. David H. Petraeus, then the commander of the United States Central Command.
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Hillary Rodham Clinton said on Sunday that she could not fully explain the discovery of a string of work emails sent from her personal account more than two months earlier than when she has said she began using that address as secretary of state. But she said she hoped that voters would look past what she called the “drip, drip, drip” of the furor over her emails.
“There was a transition period. You know, I wasn’t that focused on my email,” Mrs. Clinton said on NBC’s “Meet the Press” when asked about emails sent from her personal account in her first two months after taking office in January 2009. She had previously said she did not begin using a clintonemail.com address for State Department business until that March.
The State Department said on Friday that Mrs. Clinton had exchanged emails in late January and February 2009 with Gen. David H. Petraeus, then the commander of the United States Central Command.
Read More
by Joe Wright, Activist Post:
In light of how an increasing number of people have called into question the media presentation of such events as the Virginia Shooting, efforts at video authentication technology being undertaken at Florida International University do seem to be an important component of getting to the ultimate truth about what we see – or believe we see – when looking at what any media offers to us. However, there is some mention in the FIU press release posted below about who exactly would be doing the verification.
If we are going to call into question the source of video footage, we also need to call into question the assumption that major media companies would be the correct outlets to do the verification process, especially a company such as YouTube/Google which already has been instrumental in starving out independent journalism.
It would seem wise that a truly independent third party should verify authenticity where “citizen journalism” often serves to undermine major media’s official stories.
Read More
In light of how an increasing number of people have called into question the media presentation of such events as the Virginia Shooting, efforts at video authentication technology being undertaken at Florida International University do seem to be an important component of getting to the ultimate truth about what we see – or believe we see – when looking at what any media offers to us. However, there is some mention in the FIU press release posted below about who exactly would be doing the verification.
If we are going to call into question the source of video footage, we also need to call into question the assumption that major media companies would be the correct outlets to do the verification process, especially a company such as YouTube/Google which already has been instrumental in starving out independent journalism.
It would seem wise that a truly independent third party should verify authenticity where “citizen journalism” often serves to undermine major media’s official stories.
Read More
from KingWorldNews:
Someone from the IMF just said that the chances are 99 percent that China will get approved for reserve currency status. If they do (get approved), how long before China says, ‘Now that we are approved as a reserve currency, now that the world can trade with the yuan, we want to put a little more backbone in our currency, how about backing part of our currency with gold?’
If you put all this together, you have a case for gold. China is going to back their currency with gold.
I have in front of me on my screen four different assets — gold, oil, stocks, and bonds. And the date I have (at the beginning of the charts) is 9/30/2007. Why is that date important? Because that is when the world changed. That was the beginning of the Great Recession and everything changed after that point.
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Someone from the IMF just said that the chances are 99 percent that China will get approved for reserve currency status. If they do (get approved), how long before China says, ‘Now that we are approved as a reserve currency, now that the world can trade with the yuan, we want to put a little more backbone in our currency, how about backing part of our currency with gold?’
If you put all this together, you have a case for gold. China is going to back their currency with gold.
I have in front of me on my screen four different assets — gold, oil, stocks, and bonds. And the date I have (at the beginning of the charts) is 9/30/2007. Why is that date important? Because that is when the world changed. That was the beginning of the Great Recession and everything changed after that point.
Read More
by Bix Weir, Road to Roota:
Very strange goings on in the Silver Derivative world lately. Clearly someone is panicking!
After adding $50B in Silver Derivatives in 1Q 2015 Citibank closed out the position in 2Q 2015! JPM picked up some of the slack with a rise of $7B in Silver Derivatives in Q2.
But that’s not the strangest thing…
Read More…
Very strange goings on in the Silver Derivative world lately. Clearly someone is panicking!
After adding $50B in Silver Derivatives in 1Q 2015 Citibank closed out the position in 2Q 2015! JPM picked up some of the slack with a rise of $7B in Silver Derivatives in Q2.
But that’s not the strangest thing…
Read More…
by Max Hernandez, The Daily Bell:
Synopsis: Nairobi Bombay, a blogger for an anonymous Internet site, is investigating reports that unusually large numbers of people are dying in the new homeless camps. Meanwhile, Dancing Fawn also uses anonymous Internet links in an attempt to track down her missing husband. And Arnold Parker, head of one of the world’s largest financial organizations, takes steps to stop the release of critical information that, unknown to either Nairobi or Fawn, is essential for the success of their searches.
Nairobi* began her investigation by getting copies of every FEMA death certificate issued over the past five years – 27,836 of them. All, fortunately, in electronic format. Each came from a homeless camp and was electronically signed by a physician, a real person with a real phone number. Using an alias she set up for the purpose, she started making phone calls.
Dr. Hiram Goodman was not the first physician she was able to contact, but he was the first one willing to give her a telephone interview.
“I’m doing a story on the FEMA homeless camps,” she began.
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Synopsis: Nairobi Bombay, a blogger for an anonymous Internet site, is investigating reports that unusually large numbers of people are dying in the new homeless camps. Meanwhile, Dancing Fawn also uses anonymous Internet links in an attempt to track down her missing husband. And Arnold Parker, head of one of the world’s largest financial organizations, takes steps to stop the release of critical information that, unknown to either Nairobi or Fawn, is essential for the success of their searches.
Nairobi* began her investigation by getting copies of every FEMA death certificate issued over the past five years – 27,836 of them. All, fortunately, in electronic format. Each came from a homeless camp and was electronically signed by a physician, a real person with a real phone number. Using an alias she set up for the purpose, she started making phone calls.
Dr. Hiram Goodman was not the first physician she was able to contact, but he was the first one willing to give her a telephone interview.
“I’m doing a story on the FEMA homeless camps,” she began.
Read More
by Christina Sarich, Natural Society:
In a recent interview on Food Sleuth Radio, Dr. Hansen exposes Monsanto’s latest contrivance – that Bt toxic corn is ‘safe’ to eat. Dr. Hansen provides ‘clean’ science through Consumer Reports that has no private backing, and certainly none by the GM industry.
Hansen states that biotechnology allows you to move genetic traits from any possible source – viruses, bacteria, animals, humans, etc. and put them into plants. This is what allowed scientists to make Bt corn and other Bt crops, and then patent them.
Bt crops are created by inserting a gene from the soil bacterium Bacillus thuringienesis into a plant, thereby creating a pesticide that lives within the plant from roots to stems. The plant itself, in fact, becomes a pesticide, and when insect pests eat them, their guts are altered, and the insect dies.
Read More
In a recent interview on Food Sleuth Radio, Dr. Hansen exposes Monsanto’s latest contrivance – that Bt toxic corn is ‘safe’ to eat. Dr. Hansen provides ‘clean’ science through Consumer Reports that has no private backing, and certainly none by the GM industry.
Hansen states that biotechnology allows you to move genetic traits from any possible source – viruses, bacteria, animals, humans, etc. and put them into plants. This is what allowed scientists to make Bt corn and other Bt crops, and then patent them.
Bt crops are created by inserting a gene from the soil bacterium Bacillus thuringienesis into a plant, thereby creating a pesticide that lives within the plant from roots to stems. The plant itself, in fact, becomes a pesticide, and when insect pests eat them, their guts are altered, and the insect dies.
Read More
According to MHLH (Ministry of Health, Labour and Welfare), Cs-134/137 has been detected from tap-water of Tokyo since October of 2014. The data is from October 2014 to March 2015. The newer result hasn’t been announced yet.
The sample was collected from the tap of Tokyo Metropolitan Institute of Public Health in Shinjuku.
The density was from 0.00178 to 0.003 Bq/Kg. Cs-134 was detected to prove it is from Fukushima plant.
The analysis was implemented by NRA (Nuclear Regulation Authority).
Read More @ Fukushima-diary.com
We have to stop the melted reactors before we can put a containment like Chernobyl around it . Chat room & info by and for the Fukushima Hounds . http://fukushimahounds.freeforums.net/
Fukushima Reactors #1 #2 #3 #4 #5 #6
[Ed. Note:
Please be advised, 70 – 100% of the nuclear fuel in Reactor 2 has
melted down. There is NO nuclear fuel left in Reactor 1 which has
already breached the core’s base (China syndrome). Fukushima is a
Pacific genocide.]
from MissingSky101:
Nuclear Expert: US West Coast being continuously exposed to Fukushima radioactive releases, it’s an ongoing tragedy — Marine Chemist: Impossible to stop nuclear waste flowing into ocean; “It never will be… that’s what keeps me up at night” — Radiation levels spiked 1,000% since floods
from MissingSky101:
Nuclear Expert: US West Coast being continuously exposed to Fukushima radioactive releases, it’s an ongoing tragedy — Marine Chemist: Impossible to stop nuclear waste flowing into ocean; “It never will be… that’s what keeps me up at night” — Radiation levels spiked 1,000% since floods
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