– Oil CEO Wanted University Quake Scientists Dismissed: Dean’s E-Mail (Bloomberg, May 15, 2015)
– Obama Just Called This “Rotting, Decaying Hellhole” A Symbol Of “Promise For The Nation” (ZeroHedge, May 18, 2015):
Speaking in Camden, New Jersey, President Obama just uttered the following Detroit-esque words of doom:
*OBAMA SAYS CAMDEN IS SYMBOL OF PROMISE FOR NATION
All over America, formerly prosperous communities are being transformed into crime-infested wastelands of poverty and despair. Of course the most famous example of this is Detroit. At one time, Detroit was the greatest manufacturing city that the world had ever seen and it had the highest per capita income in the entire country. But now it has become a rotting, decaying hellhole that the rest of the planet laughs at. And of course Detroit is far from alone. There are hundreds of other U.S. cities that are suffering a similar fate. In this article, the focus is going to be on Camden, New Jersey, but the truth is that there are lots of other “Detroits” and “Camdens” all over the nation. Jobs and businesses are leaving our cities at a staggering rate, and what is being left behind is poverty, crime and extreme desperation. Continue reading »
– Revealing The Identity Of The Mystery “Belgian” Buyer Of US Treasurys (ZeroHedge, May 18, 2015):
After months of speculation and confusion, on Friday we finally got if not direct, then certainly indirect, evidence from this month’s TIC data that “Belgium” was merely a front for China.
– The Debt To GDP Ratio For The Entire World: 286 Percent (EconomicCollapse, May 17, 2015):
Did you know that there is more than $28,000 of debt for every man, woman and child on the entire planet? And since close to 3 billion of those people survive on less than 2 dollars a day, your share of that debt is going to be much larger than that. If we took everything that the global economy produced this year and everything that the global economy produced next year and used it to pay all of this debt, it still would not be enough. According to a recent report put out by the McKinsey Global Institute entitled “Debt and (not much) deleveraging“, the total amount of debt on our planet has grown from 142 trillion dollars at the end of 2007 to 199 trillion dollars today. This is the largest mountain of debt in the history of the world, and those numbers mean that we are in substantially worse condition than we were just prior to the last financial crisis. Continue reading »
– David Stockman: “We Are Entering The Terminal Phase Of The Global Financial System” (David Stockmann’s Contra Corner, May 18, 2015):
Today David Stockman, the man President Ronald Reagan called upon along with Dr. Paul Craig Roberts to help save the United States from disaster in 1981, warned King World News that we are now entering the “terminal phase” of the global financial system that will end in total collapse.
Eric King: “David, I wanted to get your thoughts on gold in the midst of this big deflation you think is in front of us. When you look at the collapse of 2008 – 2009, gold was one of the best performing asset classes. Gold went down but it went down much less relative to virtually everything else. Contrast that to 1973 – 1974, where we had a 47 percent stock market collapse. But during that time we had skyrocketing gold and silver. What’s in front of us because it looks like gold and silver may be ending a 4 year bear market and ready for a 1973 – 1974-style up-move?”
David Stockman: Continue reading »
– So Much For The Oil Crash: Cali Gas Price Almost Back To Year Ago Levels; Los Angeles Gallon Rises Over $4.00 (ZeroHedge, May 18, 2015):
While one could, at least superficially, make the case that for the US consumer (if nobody else) lower oil prices are indeed better than the opposite, we wonder how the same pundits will spin that according to AAA, not only are Los Angeles gas prices now back over $4.00 per gallon, erasing almost all losses from a year ago.
– Gold Hits 3-Month Highs Amid “Frenetic Liquidity” (ZeroHedge, May 18, 2015):
Gold topped $1230 this morning – breaking to 3-month highs and up over 4% year-to-date – up 5 days in a row for the best run in 4 months. The surge comes causally or correlatedly coincidental with China’s explicit shift into extraordinary measures (LTROs) but, as The FT reports, market participants are concerned that algo-based funds have created a “frenetic liquidity” environment as everyone from real money to central banks “aren’t trading the gold market the way they used to.”
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes
From the article:
“If that’s “success“, we would hate to see what Keynesian failure looks like.”
– This Is What Keynesian “Success” Looks Like: Soaring Part-Time Jobs, Record Low Real Wages (ZeroHedge, May 17, 2015):
Though we noted the plight of the Japanese worker in a previous post, a plight which arrived in the US some five years ago yet which the mainstream still refuses to acknowledge, the punchline may have been somewhat diluted. So here it is again, without much additional commentary.
When it comes to the consequences of Japan’s QE, now in its third year, the head of the BOJ has been very clear: Continue reading »
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the 26 most terrifying words in the English language. They also discuss vigilante governments and bond vigilantes. In the second half, Max interviews Harry Cole (Twitter: @MrHarryCole) about the Conservative party victory in General Election 2015. They also discuss Scotland, the EU referendum and the TTIP trade deal.
– Greece Will Default On June 5 Without Deal, IMF Leaks (ZeroHedge, May 16, 2015):
Another week came and went with no breakthrough in negotiations between Greece and its creditors. The IMF is now fed up and has reportedly refused to be a part of any new bailout program for Greece, after Athens drew down its SDR reserves to makes its latest payment to the Fund. That money will now need to be repaid and in a move that surely marks the new gold standard for absurd circular funding schemes, Greece will likely look to use the next tranche of IMF money to payback its IMF SDR reserve which it tapped to pay the IMF. The country’s public sector employees live in limbo, not knowing from one week to the next whether they will be paid and commuters are now subjected to a 50 second looped highlight reel of the Nazi occupation meant to rally the country behind the government’s quarter trillion euro war reparations claim (they might as well just ask for a ‘gagillion’) on Germany which has now become the symbol of tyranny and debt servitude for many Greek citizens. Continue reading »
– The Coming Crash of All Crashes – but in Debt (Armstrong Economics, May 16, 2015):
Why are governments rushing to eliminate cash? During previous recoveries following the recessionary declines from the peaks in the Economic Confidence Model, the central banks were able to build up their credibility and ammunition so to speak by raising interest rates during the recovery. This time, ever since we began moving toward Transactional Banking with the repeal of Glass Steagall in 1999, banks have looked at profits rather than their role within the economic landscape. They shifted to structuring products and no longer was there any relationship with the client. This reduced capital formation for it has been followed by rising unemployment among the youth and/or their inability to find jobs within their fields of study. The VELOCITY of money peaked with our ECM 1998.55 turning point from which we warned of the pending crash in Russia. Continue reading »
– Leading German Keynesian Economist Calls For Cash Ban (ZeroHedge, May 16, 2015):
It’s official: the world has gone central-planner crazy.
Monetary policy, whether in the form of “conventional” methods such as the micromanagement of policy rates or so-called “unconventional” measures such as QE, has proven utterly ineffective when it comes to both “smoothing out” the business cycle and reigniting economic growth in the wake of severe downturns. If anything, recent history has shown the exact opposite to be true. That is, the Fed helped to engineer the housing bubble and has now succeeded in inflating a similar bubble in stocks and fixed income. Meanwhile, the Japanese experience with QE has plunged the country into what we have affectionately dubbed “The Kuroda Zone”, wherein the BoJ has cornered both the stock and bond markets while failing to promote wage growth or meaningfully raise inflation expectations. In China, the PBoC has taken to cutting policy rates at the first sign of weakness in the stock market, helping to sustain what will perhaps go down in history as the second coming of the tulip bulb mania, while the ECB has taken the insane step of adopting a trillion euro bond buying program while simultaneously demanding fiscal discipline, meaning the central bank’s bond monetization efforts are set against a backdrop of meager supply. Continue reading »
– Why Are Exchange-Traded Funds Preparing For A ‘Liquidity Crisis’ And A ‘Market Meltdown’? (Economic Collapse, May 13, 2015):
Some really weird things are happening in the financial world right now. If you go back to 2008, there was lots of turmoil bubbling just underneath the surface during the months leading up to the great stock market crash in the second half of that year. When Lehman Brothers finally did collapse, it was a total shock to most of the planet, but we later learned that their problems had been growing for a long time. I believe that we are in a similar period right now, and the second half of this year promises to be quite chaotic. Apparently, those that run some of the largest exchange-traded funds in the entire world agree with me, because as you will see below they are quietly preparing for a “liquidity crisis” and a “market meltdown”. About a month ago, I warned of an emerging “liquidity squeeze“, and now analysts all over the financial industry are talking about it. Could it be possible that the next great financial crisis is right around the corner?
“Ghost towns in UK are a real problem.
People shoring up their pension funds with nice properties in quaint or popular locations have been depriving communities of continuity and business for decades, but the failure of Local and National Government to address the issue and its Social consequences has resulted in an exponential growth.
Where we live, in a picturesque part of the country, small villages have really become ‘holiday villages’ due to a large portion of the properties being let to people on vacation.
But, out of season, there’s just no one there….reminiscent of THE SHINING.”
– The one figure that shows the scale of London’s housing crisis (Independent, May 15, 2015):
The realities of London’s housing crisis have been made even more clear, after it has been found that seven out of 10 properties on one Kensington street are second homes.
On the 300 metre length of Ashburn Place in Kensington, West London, which has 131 residential addresses, 70 per cent of the homes are not classed as a main home, according to Kensington & Chelsea Council.
– Gold Breaks Key Technical To 3-Month High, Silver Surging (ZeroHedge, May 14, 2015):
The last 3 days have seen precious metals surging. Silver is up over 7% – its biggest such rise since Aug 2013, and Gold up 3% – its largest in 4 months. Volume is heavy also. A specific catalyst is unclear but USD weakness is being cited, weak macro data suggesting further easing, China demand ahead of SDR-backing, and finally the realization that the Chinese shift to unconventional monetary policy (LTROs) is a slippery slope to full-blown QE from which few (if any) have ever escaped.
– Bundesbank Blasts Draghi For Breaking Bailout Taboo (ZeroHedge, May 14, 2015):
“The head of Germany’s Bundesbank ripped into the European Central Bank on Thursday, saying emergency funding for Greek banks broke the taboo of financing governments and it was not up to central banks to decide who was or wasn’t in the euro zone,” Reuters reports.