Oct 21

- “Anti-Petrodollar” CEO Of French Energy Giant Total Dies In Freak Plane Crash In Moscow (ZeroHedge, Oct 20, 2014):

Three months ago, the CEO of Total, Christophe de Margerie, dared utter the phrase heard around the petrodollar world, “There is no reason to pay for oil in dollars,”  as we noted here. Today, RT reports the dreadful news that he was killed in a business jet crash at Vnukovo Airport in Moscow after the aircraft hit a snow-plough on take-off. The airport issued a statement confirming “a criminal investigation has been opened into the violation of safety regulations,” adding that along with 3 crewmembers on the plane, the snow-plough driver was also killed.

*  *  *

As RT reports, Continue reading »

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Oct 21

- Obama’s Latest Speech About The Economic “Recovery” Results In Mass Audience Exodus (ZeroHedge, Oct 20, 2014):

Yesterday, Obama made a rare campaign trail appearance in Maryland where he spoke in support of Democratic candidate for governor, Anthony Brown, proceeded with his usual bulletin of reading fabricated economic data off the teleprompter in which he highlighted improvements in US unemployment (if not the 46.5 million people on foodstamps or the 93 million Americans out of the labor force), a rebounding housing market (just as the bouncing dead cat is once again dead), the benefits of health insurance (if no mention of the disaster for small businesses that Obamacare now definitively is) a resurgent manufacturing sector (just don’t look at this chart) even if he did point out the unfairness of families having “two folks working”, and… a mass audience exodus followed.

This is how Reuters summarized it:

President Barack Obama made a rare appearance on the campaign trail on Sunday with a rally to support the Democratic candidate for governor in Maryland, but early departures of crowd members while he spoke underscored his continuing unpopularity.

Continue reading »

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Oct 21

- Living The Grecovery Dream: Two Jobless Parents, Two Kids, One Cat All Living In A Car (ZeroHedge, Oct 20, 2014):

Squeezed between steering wheel, handbrake, door and dashboard, Katerina reads in her history book, takes notes for school. Next to her, on the driver’s seat, cat Eddy stares right in the camera lens. It may look like a cute snapshot on a sunny day, if it wasn’t for a sad detail: a withering spring stuck in a roll of toilet paper.  A distinctive memory of a former normal life that turned into a grim reality for a family of four.

At night the seat where Katerina sits during the day turns into a bed for her sister Fay. Cat Eddy cuddles with Katerina on the back seat. Father Nikos and mother Maria sleep in shifts on the driver’s seat. When the one parent is in the car, the other spends the night on a bench of the park where the car has been parked, on a side road of Irakleio suburb of West Athens. “It’s dangerous when it gets dark,” Maria says “we have to watch out.”

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Oct 21

- Dan Amerman: Will Our Private Savings Be Sacrificed To Pay Down The Public Debt? (Peak Prosperity, Oct 19, 2014):

Recently, an article by Daniel Amerman caught our attention. Titled Is There A “Back Door” Method For The Government To Pay Down The Federal Debt Using Private Savings?, it details the process known as financial repression, where sovereign debts are slowly paid off by syphoning private savings from an unaware populace.

In this week’s podcast, Chris discusses the mechanics of the process, as well as its probability, with Dan:

To understand financial repression, we have to understand that we’ve been there before. Many nations have gone through periods in the past where they’ve had very high levels of government debt. And there are four traditional ways of dealing with that. Continue reading »

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Oct 21

- The Real Bubble Isn’t Stocks… and It Will Make 2008 Look Like a Picnic (ZeroHedge, Oct 2, 2014):

The 2008 crisis was just a warm-up.

The 2008 crisis was a banking and equities crisis. In the simplest terms, investment banks, leveraged to the hilt with garbage mortgage derivatives, became insolvent and began to collapse.

This collapse triggered a selling panic throughout the financial system as every financial entity questioned the quality of the assets backstopping its derivatives trades. The derivative market was over $700 trillion at the time. So just about every major global bank had broad exposure to this market. Continue reading »

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Oct 20

euro-collapse

- Europe’s Fatal Flaw Laid Bare For All To See. Again. (The Automatic Earth, Oct , Oct 17, 2014):

markets, at the end of last week, sort of refound their – shaky – feet, oil up a dollar, EU exchanges up 3% or so, Greece even up over 7%, while interestingly gold didn’t move much at all during the wild week (no safe haven), and most movement was perhaps, through all the see-saw, in bonds. To sum up the week: panic followed by plunge protection teams. And now the ‘leaders’ hope plunge protection will save another day too.

And they may. Germany sinks a bit, but Germany is strong. US housing is at least not falling further, but US consumer spending stalls and drops. The deep dark weakness has not yet hit the big economies. But the nerves are back. Volatility is back with a vengeance. As it should. And that will paint the picture going forward, plunge protection or not. Da markets will come again and again and dare central banks to plunge protect. Continue reading »

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Oct 20

- Liberia collapses into ‘economic hell’ as panicked population abandons farm fields and factories (Natural News, Oct 18, 2014):

Ebola is now spreading so fast in West Africa, and causing so much death so quickly, that the regional economy is on the verge of a total collapse. The Washington Post (WP) reports that Liberia, the hardest-hit Ebola country, is now teetering over a chasm of “economic hell,” as locals increasingly skip work to avoid infection. Continue reading »

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Oct 19

5-truths-you-cannot-disagree-with
Source

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Oct 19

- Because This Time Is Never Different, In 100 Year Old Cartoons (ZeroHedge, Oct 18, 2014):

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Oct 19

- Mel Watt, Federal Housing Finance Agency Head, is Pushing Banks to Make Extremely Risky Home Loans (Liberty Blitzkrieg, Oct 16, 2014):

Mel Watt is one of the most dangerous financial oligarch puppets operating in America today. The first time he came across my radar screen was back in 2009, when he “gutted” Ron Paul’s End the Fed bill while it was in subcommittee, something I outlined in the post: Leverage in PE Deals Soars Despite Fed Warnings; Amidst Insatiable Demand for Risky Fannie Mae Debt. Continue reading »

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Oct 19

- Welcome To Arcadia – The California Suburb Where Rich Chinese Stash Cash In McMansions (Liberty Blitzkrieg, Oct 16, 2014):

The city, population 57,600, projects that about 150 older homes—53 percent more than normal—will be torn down this year and replaced with mansions. The deals happen fast and are rarely listed publicly. Often, the first indication that a megahouse is coming next door is when the lawn turns brown. That means the neighbor has stopped watering and green construction netting is about to go up.

Arcadia is a concentrated version of what’s happening across the U.S. The Hurun Report, a magazine in Shanghai about China’s wealthy elite, estimates that almost two-thirds of the country’s millionaires have already emigrated or plan to do so.

– From the Bloomberg article: Why Are Chinese Millionaires Buying Mansions in an L.A. Suburb?

The surge in foreigners buying up U.S. real estate has been well documented in recent years. Of all this buying, no nation has demonstrated a bigger increase in purchases than China. In fact, it is estimated that 24% of all foreign purchases of domestic real estate this year have come from China, up 72% from last year. In my post from July, Chinese Purchases of U.S. Real Estate hit $22 Billion as The Bank of China Facilitates Money Laundering, I noted that:

In some California communities, 90% of real estate buyers are from China. Yes, 90%. Naturally, many of them are buying multi-million dollar homes in “all cash” transactions. Continue reading »

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Oct 19

- Forget about Ebola – here’s why US banks (and your savings) are now EXTREMELY vulnerable (Sovereign Man, Oct 16, 2014):

For a casual observer of the US economy (most “experts”), you could say that things look pretty good. Unemployment is at its lowest rate in six years. Earnings of S&P 500 companies are higher than ever, while their debt is lower than it’s been in the last 24 years.

Nonetheless, rather than getting excited for good economic times, the big commercial banks are all battening down the hatches. They’re preparing for bad times ahead. Continue reading »

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Oct 19

Christine-Lagarde-IMF

- The IMF And Austrian Theory ( Mises Canada,Oct 17, 2014):

Back in the early 1960s, financial journalist Henry Hazlitt warned against efforts to create an international system to help facilitate the smooth transfer of currencies. Representatives from the world’s leading governments were attempting to increase liquidity in global markets. They wanted to make sure the banking system and sovereign governments would never had a lack of funds. Hazlitt was not fooled. “In plain English” he wrote, “they are pushing for more world inflation.” His words, though accurate, went unheeded. The International Monetary Fund, which was established decades earlier, was to play a role in facilitating endless inflation.

Half a century later, the IMF has overseen a tumultuous business cycle that came to a screeching halt in 2008. Big, overleveraged banks were on the verge of collapsing; millions of people lost their jobs and their homes; governments spent billions of dollars to maintain their welfare safety nets. The end result, which is still ongoing, is stagnant economic growth with dim prospects for recovery. Continue reading »

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Oct 19

- Kudos To Herr Weidmann For Uttering Three Truths In One Speech (David Stockman’s Contra Corner, Oct 17, 2014):

Once in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets.

These days the Keynesian chorus in favor of policy activism is so boisterous that a succinct statement to the contrary rarely gets through – especially at Rupert Murdoch’s Wall Street yarn factory. But here’s what penetrated even Brian Blackstone’s filters:

“The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” he said.

Continue reading »

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Oct 19

Related info:

- FBI Files On Famous Physicist Richard Feynman Released


Richard Feynman

- The Farce That Is Economics: Richard Feynman On The Social Sciences ( Sinclair & Co., Oct 18, 2014):

Richard Feynman on the Social Sciences

What do real scientists have to say about sciences that are not so real?

Born in 1918, Richard Feynman was an American theoretical physicist known for his work in a variety of fields where he made an immeasurable contribution, including quantum mechanics, quantum electrodynamics and particle physics. He was also credited with introducing the concept of nanotechnology, a breakthrough that holds so much promise today. Continue reading »

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Oct 18

- Happy 27th Anniversary Black Monday (ZeroHedge, Oct 17, 2014):

“It could never happen again… right?”

20141017_Black Monday 1987

And if you think this time is different – just take a look at the ‘tricks’ they used 27 years ago to stop the fall – A Fed statement and borken/halted exchanges… Continue reading »

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Oct 18

- Yellen Translated: “Let Them Eat Cake”  (ZeroHedge, Oct 17, 2014):

ECRI’s Lakshman Achuthan is not happy at Janet Yellen’s speech this morning

According to the Fed’s triennial Survey of Consumer Finances, the top 10% of U.S. families are doing just fine, and those in the bottom fifth are essentially being kept afloat by transfer payments; but the inflation-adjusted median family income has shrunk by one-eighth since 2004. Quite simply, middle-class incomes are being gutted. Continue reading »

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Oct 18

- Handelsblatt: “Four German Banks On The Brink” (ZeroHedge, Oct 17, 2014):

Several days ago we were confused why, out of the blue, a €1 billion loan BWIC appeared that was dumping German non-performing loans. After all, the whole point of the European “recovery” fable to date has been to deflect all the attention from the “pristine” German banks, up to an including world-record derivatives juggernaut Deutsche Bank,  and to focus on Greece and other insolvent peripheral European nation. Earlier today, German Handelsblatt provided an answer, when it reported that “four German banks are on the brink”, i.e., four banks of which three are known, HSH Nordbank, IKB and MunchenerHyp, will likely fail the ECB’s stress test whose results are due to be announced next Friday.

Keep in mind that this is a significant fraction of the 24 German banks that are undergoing the ECB’s Stress farce test. So one wonders: if one in six German banks is so unsafe even the ECB (which kept Cypriot banks going well past their insolvency) will give them a black stamp (because in Europe failing a bank stress test is first of all impossible since both Bankia and Dexia passed theirs with flying cololrs, but more importantly a death sentence), what does that leave for the rest of Europe’s banks, all of which are in far more dire shape than sleepy Germany?

In any case, here is Handlesblatt’s warning: Continue reading »

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Oct 18

- And The Market Breaks Again… (ZeroHedge, Oct 17, 2014)

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Oct 18

One reader at RT commented:

“Swiss is quickly becoming an oasis in the vast desertification of eurozone.”

… but only an oasis for the rich and powerful, …

… at least that is what reports that are coming in on my end tell me.

I’ve also been told that you cannot go there anymore, because it simply has become far to expensive.

Will Switzerland be (again) a refuge for elite when the financial collapse (and WW3) will take place?


Switzerland

- Switzerland cuts growth forecast, blames slowing Europe & geopolitical crisis (RT, Oct 16, 2014):

Even the Swiss economy isn’t immune to the “fragile and vulnerable eurozone” and has cut growth forecasts for this year and next. The government points its finger at weak exports to Germany and geopolitical crisis in Ukraine and the Middle East.

The Swiss government has cut back its GDP expectation to 1.8 percent from 2.0 percent growth in 2014, the second revision this year, the State Secretariat for Economics (SECO) said in a statement Thursday. Continue reading »

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Oct 18

- Jim Rogers Warns: Albert Edwards Is Right “Sell Everything & Run For Your Lives” (ZeroHedge, Oct 17, 2014):

From Bitcoin to the Swiss gold referendum, and from Chinese trade and North Korean leadership, Jim Rogers covers a lot of ground in this excellent interview with Boom-Bust’s Erin Ade. Rogers reflects on the end of the US bull market. citing a number of factors from breadth to the end of QE, adding that he agrees with Albert Edwards’ perspective that now is the time to “sell everything and run for your lives,” as the “consequences of [The Fed] are now being felt.” Most notably though, Rogers believes the de-dollarization is here to stay as Western sanctions force many nations to find alternatives. Simply put, Rogers concludes, “we are all going to pay a terrible price for all this money-printing and debt.”

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Oct 18

queen_elizabeth_ii

- The Queen of England Deals Extensively in $17 Trillion Depleted Uranium Trade (Nation of Change, Feb 28, 2014):

Many people are wondering what really caused Fukushima. While we can look into the geologic studies that were taken prior to the Daiichi event, outlining the active 200 meter fault line that Honshu Island rests right on top off, we are obliged as citizens to look even deeper, more so with the admission of an anonymous U.S. government nuclear official that radiation leaking from the plant just 100 meters away is “astronomical.”

Uranium can be mined for some medical purposes and to make electricity, but its main purpose was and is to fuel nuclear warfare against the world. Just six mines provide 85 percent of the world’s uranium and guess who owns the mineral rights to that land?

It may be surprising to realize it is none other than the Queen of England. Continue reading »

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Oct 18

- Japanese Stocks Tumble After BoJ Bond-Buying Operation Fails For First Time Since Abenomics (ZeroHedge, Oct 17, 2014):

Having rotated their attention to the T-bill market in Japan (after demand for the Bank of Japan’s cheap loans disappointed policymakers) in an effort to ensure enough freshly printed money was flushed into Japanese markets, the BoJ now has a major problem. For the first time since QQE began, Bloomberg reports the BoJ failed to buy all the bonds they desired. Whether this is investors unwilling to sell (preferring the safe haven than stocks or eu bonds) or that BoJ has soaked up too much of the market (that dealers now call “dead”) is unclear. Japanese stocks – led by banks – are sliding as bond-demand sends 5Y yields (13bps) to 18-month lows.

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Oct 18

- Define Irony: Janet Yellen Talks Inequality, Has Some Advice – Start A Business, Get Rich Parents (ZeroHedge, Oct 17, 2014):

With no mention of the current turmoil in markets – or suggestion of QE99Janet Yellen’s speech this morning on “Inequality and Opportunity” in America explains how the poor can get rich. After admitting that widening inequality resumed in the recovery (and “greatly concerns” her), as the stock market rebounded (driven by Fed’s free money) and cost-conscious share buying-back companies defer wage growth as the healing of the labor market has been slow; she turns her attention to how the poor can beat the vicious cycle. Rather stunningly, she notes the 4 sources of income opportunity in America: The first two are widely recognized as important sources of opportunity: resources available for children and affordable higher education (so more student debt and servitude). The second two may come as more of a surprise: business ownership and inheritances. As she concludes, “this is how individuals and their families can improve their economic circumstances.

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Oct 18


13.01.2010

Desription:

Col Fletcher Prouty explains how oil was falsely classified a “fossil fuel” in 1892 and how that deception was advanced further in the 70’s by Kissinger and Rockefeller. Prouty also explains that Nixon/Kissinger/Rockefeller were seeking a ‘world oil price’. That effort created what many now call the “Petrodollar” and the impact of that mistake is playing out still today across the planet. Both Sadam Hussein and Libya’s Ghadafi were stopped (murdered) when they attempted to sell oil in 1) Euros or 2) Dinars.

The Petrodollar: http://anticorruptionsociety.com/2011…

Col. Prouty spent 9 of his 23 year military career in the Pentagon (1955-1964): 2 years with the Secretary of Defense, 2 years with the Joint Chiefs of Staff, and 5 years with Headquarters, U.S. Air Force. In 1955 he was appointed the first “Focal Point” officer between the CIA and the Air Force for Clandestine Operations per National Security Council Directive 5412. He was Briefing Officer for the Secretary of Defense (1960-1961), and for the Chairman of the Joint Chiefs of Staff. Continue reading »

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Oct 17

dollar-burning

- Data Dependent Fed Ignores ‘Data’ – Bullard Joins Williams In Call For QE4 (ZeroHedge, Oct 16, 2014):

As yet another fed speaker takes the jawboning lectern today, it is becomingly increasingly clear that The Fed truly has only one mandate – to keep stocks up. While claiming to be “data-dependent”, which judging by the general trend of government-supplied data (and President Obama), things are going great; Jim Bullard joins his intervention-prone colleague Williams: BULLARD SAYS BOND PURCHASES SHOULD BE DATA DEPENDENT and SAYS ‘U.S. FUNDAMENTALS REMAIN STRONG’ but BULLARD SAYS FED SHOULD CONSIDER DELAY IN ENDING QE. So much for data-dependence…

‘U.S. FUNDAMENTALS REMAIN STRONG’

Is that so?

Take a look at this if you haven’t done so yet:

- 12 Charts That Show The Permanent Damage That Has Been Done To The U.S. Economy (Economic Collapse, Oct 13, 2014)

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Oct 17

- Prepare For Epic Volatility: E-mini Liquidity Is Nonexistant (ZeroHedge, Oct 16, 2014):

If you thought the last several days were volatile in the market, you ain’t seen nothing yet: judging by the early liquidity, or rather complete lack thereof, in the market moving E-Mini contract, the asset class through which as we disclosed a month ago central banks directly manipulate markets with the CME’s blessing, then we urge all those who have stop losses close to the NBBO to quietly pull those as they will get hit adversely. The reason? As this Nanex chart of ES orderbook levels show, there is zero, zilch, nada liquidity in the ES (purple line, compare to orange yesterday).

ES liquidity Oct 16

Which means that should yesterday’s volumes carry over into today (volumes which were so high, bank dark pools had to rebuff orders as they couldn’t handle the order surge) and move a market in which there is virtually no orderbook buffer, the S&P will certainly jump around like a rabid bull on meth. Continue reading »

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Oct 17

- Putin: If Ukraine siphons gas from pipeline, Russia will reduce Europe supplies (RT, Oct 16, 2014):

Moscow will reduce gas supplies if Kiev starts siphoning deliveries destined for Europe, said Russia’s President Vladimir Putin during a visit to Serbia.

“There are large transit risks. If we see that our Ukrainian partners start illegally taking our gas from the export pipeline as it was in 2008, we will equally reduce the amount of supply as happened in 2008,” warned Putin on Thursday at a news conference in Belgrade, stressing he was “hopeful” it would not come to that.

However, the Russian president pledged that Moscow will supply enough gas to Europe this winter.

“I can tell you for sure, and I am saying with absolute responsibility, there will be no crisis in Europe due to the fault of Russian participants in energy cooperation,” Putin stressed.

“Russia has always been a reliable supplier, we have enough resources.” Continue reading »

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Oct 17

- 9 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years (Economic Collapse, Oct 14, 2014):

Is the stock market about to crash?  Hopefully not, and there definitely have been quite a few “false alarms” over the past few years.  But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash.  That doesn’t mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.  So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again.  Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.

The following are 9 ominous signals coming from the financial markets that we have not seen in years… Continue reading »

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Oct 17

- This Time Is Different—–For The First Time In 25-Years The Wall Street Gamblers Are Home Alone (David Stockman’s Contra Corner, Oct 14, 2014):

The last time the stock market reached a fevered peak and began to wobble unexpectedly was August 2007. The proximate catalyst back then was the sudden recognition that the subprime mortgage problem was not contained at all, as Bernanke had proclaimed six months earlier. The evidence was the surprise announcement by the monster of the mortgage midway—–Countrywide Financial—-that it would be taking huge write-downs on its $200 billion balance sheet.

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