Back in mid-2009, we said that with the Fed and central banks nationalizing capital markets, macro and even micro data and newsflow will matter increasingly less and less, and the only thing that does matter is the Fed’s weekly H.4.1 statement, showing the changes to the Fed’s balance sheet. It also means that so-called “data dependency” is a farce (it is, and has always been “Dow dependency”), and that the impact of incremental newsflow will
Several Top Secret documents, sourced from Edward Snowden’s files, have recently been published, revealing how the National Security Agency (NSA) spied on India’s ballistic missiles systems and nuclear weapons. The NSA did so using its interception programme, Rainfall, via its bases in Australia and Thailand. These Top Secret documents make it more plausible to view two events with suspicion: the death, allegedly accidental, of Homi J. Bhabha, the father of Indian nuclear power, and also,
After being force-fed more stimulus than John Belushi, and endless rounds of buying any and every asset that dares to expose any cracks in the potemkin village of fiat folly, Japan remains stuck firmly in what Abe feared so many years ago – a “deflationary mindset.”
As Bloomberg reports, cash and deposits held by Japanese households rose for 42nd straight quarter at the end of June as the nation’s consumers continued to favor saving over
We’ve spent a lot of time of late discussing the inevitable public pension crisis that will eventually wreak havoc on global financial markets. And while the scale of the public pension underfunding is unprecedented, with estimates ranging from $3 – $8 trillion, there is another taxpayer-funded retirement benefit that has been promised to union workers over the years that puts pensions to shame…at least on a percentage funded basis.
Other Post-Employment Benefits (OPEB), like pensions,
Since its current world-beating bull run began in late 2015, bitcoin has surmounted a series of pitfalls that were supposed to kill the market. The list is remarkably long. The DAO hack. The PBOC crackdown. The ICO craze. The SEC’s rejection in March of two proposed bitcoin ETFs. And, most recently, the network split that spawned bitcoin cash. All were supposed to burst the roaring valuation bubble, yet in almost every example, a temporary pullback
Since Bay Area TV anchor Frank Somerville published an honest description of “the hate” he experienced from “violent, clad in black” protesters while trying to document a right-wing rally in Berkeley, the liberal media has decidedly turned against AntiFa – the loosely organized band of black-clad thugs who show up to “counter-protest” at conservative events and demonstrations around the country. WSJ’s report describes the group as the left-wing equivalent of the fascists and white supremacists
As the date of the Kurdish independence referendum approaches, oil industry moguls should be concerned about an oil production war between Iran and headless Iraq.
The Kurds are expected to vote on their political status in late September. A vote in the affirmative would mean that Iraq would lose a chunk of its northern areas, which includes the crucial Kirkuk oilfield and its surrounding reserves.
Many in the media are diving deeply into minutiae in order to discredit any notion that President Trump might have been onto something in March when he fired off a series of tweets claiming President Obama had “tapped” “wires” in Trump Tower just before the election.
According to media reports this week, the FBI did indeed “wiretap” the former head of Trump’s campaign, Paul Manafort, both before and
In the aftermath of a surreal Janet Yellen press conference, in which the Fed chair admitted that Fed “no longer understands” the “mystery” that is inflation, we did our best to explain to Yellen that the reason why the Fed’s search for inflation has been fruitless, is because for nearly a decade it has been looking in the wrong place: the “real economy” where the Fed’s impact has been negligible, as opposed to “asset prices”
In what has been the most stunning admission by Janet Yellen so far during her press conference, the Fed Chair said that “we don’t fully understand inflation” and added that the “shortfall of inflation this year is more of a mystery.”
With all due respect, it’s not. But since the Fed is often confused, we would like to do the central bank a favor and “explain” inflation, or the lack thereof as the Fed
Today’s the day. On Nov 25, 2008 The Fed announced it would begin buying assets for its own account to save the world. In Oct 2014, The Fed ended its QE3 buying program but continued to reinvest the proceeds to maintain its $4.4 trillion balance sheet. Today, Janet Yellen announced the balance sheet will be allowed to normalize, with reinvestments slowed/stopped starting in October.
*FED: HURRICANES UNLIKELY TO ALTER ECONOMY’S COURSE MEDIUM TERM *FED:
“Community is not something you have, like pizza. Nor is it something you can buy. It’s a living organism based on a web of interdependencies- which is to say, a local economy. It expresses itself physically as connectedness, as buildings actively relating to each other, and to whatever public space exists, be it the street, or the courthouse or the village green.”
-James Howard Kunstler The Geography of Nowhere: The Rise and Decline of America’s Man-Made
One day after the much anticipated Fed announcement in which Yellen unveiled the “Great Unwinding” of a decade of aggressive stimulus, it has been a mostly quiet session as the Fed’s intentions had been widely telegraphed (besides the December rate hike which now appears assured), despite a spate of other central bank announcements, most notably out of Japan and Norway, both of which kept policy unchanged as expected.
The Daily Caller reveals how Hillary Clinton paid 800,000 dollars to five groups on the extreme left, via the Super-Pac, Onward Together. The lucky beneficiaries are: Indivisible (already a beneficiary of George Soros’s generosity, it denies however — despite the documents of the Electoral Commission — receiving gifts from Soros and Clinton); Swing Left; Color of Change; Emerge America; and Run for (…)
On September 18, the US Senate voted to ban the use of products from the Moscow-based cyber security firm Kaspersky Lab by the federal government, citing national security risk. The vote was included as an amendment to an annual defense policy spending bill approved by the Senate on the same day. The measure pushed forward by New Hampshire Democrat Jeanne Shaheen has strong support in the House
When it comes to 9/11, there are two groups of people: those who don’t know exactly what happened, and those who orchestrated it.
Nearly everyone on earth belongs in the former category, but a lot of folks like to pretend they have a rock solid understanding of the events which transpired on that fateful day in 2001. Scoffing mainstream adherents like to pretend they’re confident that the official
North Korea, Iran, Venezuela are targets in “compassionate” America’s war on the “wicked few.” It’s almost as though Washington felt its hegemony threatened…
Paul Delaroche, Napoléon à Fontainebleau, 1840. With other global powers increasingly at odds with US foreign policy under Donald Trump, the nation’s hegemony on the world stage may soon face its own crisis point.
This was no “deeply philosophical address”. And hardly a show
US Secretary of State Rex Tillerson will give on-camera press briefing at 7:40pm, according to a White House statement. There are no details specifying what Tillerson will address in briefing, but we note that he was set to meet today with counterparts from Iran and countries that signed Iran nuclear deal.
As AP reported earlier, Secretary of State Rex Tillerson has opened the highest-level meeting between U.S. and Iranian officials since the start of the Trump administration.
Between 2007 – 2010, a USDA study estimated that 1 in 8 Americans ate some form of pizza on any given day. That number climbs to about 1 in 4 for males and 1 in 5 for females when looking specifically at Americans age 12 to 19. There’s no escaping it; pizza is engrained in our diets.
Pizza is not only a pillar of the American diet, but also of our culture.
Earlier today we reported that as part of the government’s sentencing memorandum (published at the bottom), federal prosecutors asked that disgraced former Congressman Anthony Weiner, and the man Hillary Clinton has quietly added to what has become a virtually infinite list of reasons why she lost the presidential election, be sentenced to about two years in prison for engaging in sexting with an underage, 15-year-old girl. Prosecutors filed paper in Manhattan Federal Court on Wednesday
What was supposed to be a remembrance ceremony for this man, comedian and civil rights activist Dick Gregory, yesterday turned mildly bizarre, which is a recurring theme as it were, when California congresswoman Maxine Waters took the stage.
Rather than focus on the lifetime accomplishments of Gregory or fond personal memories, you know all the stuff you would usually include in a eulogy, Waters decided a funeral ceremony was the perfect place to
Every year the American Society of Civil Engineers (ASCE) comes out with a report card on the condition of America’s infrastructure. We got a D+ this year. According to them, “Deteriorating infrastructure is impeding our ability to compete in the thriving global economy, and improvements are necessary to ensure our country is built for the future.”
They calculate that every family in America will lose $3,400 a year because of infrastructure deficiencies. If the problem isn’t fixed, they
As initially reported by the Census Department, motor vehicle sales were up 1.2% in July following a 0.9% gain in June. At the time, I commented, “This is unbelievably bizarre in the face of actual auto sales reports.”
Even after weakening to a category 4 storm shortly before making landfall along the southeastern coast of Puerto Rico, Hurricane Maria has caused unprecedented devastation to the cash-strapped island, knocking out electricity for all residents. Worse still, the island’s governor has said it could be months before power is restored to all customers, according to the Associated Press.
The strongest storm to hit Puerto Rico in nearly 90 years tore off roofs and doors
Is ‘the committee to save the world’ about to ‘unsave the world’? Not according to The Fed who see their balance sheet unwind as boring a “watching paint dry.”
Of course, aside from the fact that The Fed has been unable to forecast its way out of a paper bag for decades, more than a few market participants believe otherwise, including BofA who recently warned…“the paint may be drying but the wall is about
In July I wrote a piece titled, “Is the real US Dollar Pain Trade Lower?”. At the time the US dollar was sucking wind, but many traders were still playing for a bounce. The prevailing wisdom was that the Fed’s tighter monetary policy, combined with Trump’s business acumen, along with a tax reform bill, and topped off with a massive short covering surge from emerging market
More than 30 students have been confirmed dead, and 30 more are missing, as rescuers sift through the rubble of the Enrique Rebsamen primary and secondary school, a private school that was one of 44 buildings in Mexico City that collapsed during Tuesday’s historic earthquake. According to the Associated Press, a wing of the three-story school pancaked into a pile of concrete slabs during the quake, killing dozens and leaving dozens more trapped in the
Four months after Moody’s downgraded China to A1 from Aa3, unwittingly launching a startling surge in the Yuan as Beijing set forth to “prove” just how stable China truly is, moments ago S&P followed suit when the rating agency also downgraded China from AA- to A+ for the first time since 1999 citing risks from soaring debt growth, less than a month before the most congress for Chiina’s communist leadership in the past five years
Twitter has evolved to become an important outlet for political discussion, debate and commentary. The platform was notably put to use to successfully organize anti-government protests on numerous occasions, and as Statista’s Niall McCarthy notes, this put some world leaders on edge, unsurprisingly leading to some countries clamping down on the network’s content.
Twitter’s latest transparency report shows the number of content removal requests made by different countries as well as the share that were granted.
Following the organization of the coup d’État in Ukraine, the installation of Nazis in Kiev and the independence of Crimea, Nato is feeding the paranoia of its East European members. Not only did Moscow protect the Crimeans from a government that had Nazis among its members, but conquered by force and annexed this territory that historically had belonged to the Russia. It is on account of this narrative that Washington is succeeding to occupy Eastern
I remember back in mid-2013 when the Federal Reserve fielded the notion of a “taper” of quantitative easing measures. More specifically, I remember the response of mainstream economic analysts as well as the alternative economic community. I argued fervently in multiple articles that the Fed would indeed follow through with the taper, and that it made perfect sense for them to do so given that the mission of the
A day after Bridgewater Associates Founder Ray Dalio claimed that bitcoin was “definitely in a bubble” partly because he said the digital currency was too difficult to spend, CoinTelegraph is reporting that the first-ever bitcoin-only real-estate transaction has been completed in Texas.
The transaction “illustrates crypto’s potential to transform how financial transactions are conducted,” according to Futurism.com.
The Texas-based real estate brokerage firm Kuper Sotheby’s International Realty, the firm that reperesented the buyer, declined to
Crafted by an ad agency immediately following 9/11, the slogan “if you see something, say something” took hold with astonishing speed. The tagline reflected a tectonic cultural shift; the serious and growing need for public participation in the nation’s enforcement paradigm. In many ways, those six words have come to define a change in guard in which
Everyone is making such a big deal about these outtakes. If anything, it makes Larry look like a good olde Irish boy, having a grande olde time with the teevee cameras. I’m sure Larry had an extra pint after all of the insanity was in his ear, hammering and the like.
Netanyahu: “Penguins have no difficulty recognizing that some things are black and white.”
Trump: “I have decided…I’ll let you know.”
Rouhani: “Iran’s defense capacities are only a deterrent.”
President Trump has been notoriously hard to read when it comes to high stakes foreign policy issues. On Wednesday he told the media, “I have decided” concerning whether he’ll scrap the Iran nuclear deal, though not actually indicating what he’s decided. But will the US really unilaterally pull out?
Shares of AMD ($AMD) spiked over 6 percent in after hours trade following a CNBC report that carmaker Tesla has teamed up with the chip maker develop a custom A.I. processor for self-driving technology.
The carmaker has received the first batch of samples from the chipmaker, a source told CNBC.
The new relationship with AMD likely signals a shift away from Nvidia, which is currently providing a small processing chip for Tesla’s
A few short years ago, it was considered tinfoil hat conspiracy theory to say that the goals of the Fed and their QE programs were to boost stock prices, real estate prices, and basically almost every other asset class. Then slowly, years later, the MSM and others began to realize that it was the truth. You even had the likes of former Fed Governors saying so, Richard Fischer, Thomas Hoenig, Charles Plosser, and Jeremy Stein.
The Wall Street Journal won the award for the greatest “Shock And Awe” financial headline of the day when it published a story earlier entitled “Warren Buffett Says the Dow Is Going Over One Million.” The ‘Oracle of Omaha’ apparently made the ‘bold’ prediction at the 100-year anniversary celebration of Forbes magazine in which he also said that “being short America will continue to be a loser’s game.” Here are the highlights from WSJ:
“There is no other agency of government which can overrule actions that we take.”
– Alan Greenspan
The Federal Reserve (Fed) currently expects real economic growth for the foreseeable future to average below 2.00%. Japan, the United Kingdom, and the European region are forecasting an even more anemic pace. On numerous occasions, we have detailed the reasons the United States and many foreign nations are mired
With the Fed set to unveil its first balance sheet reduction in modern history – an event that is largely priced in – what traders are far more interested in, is what will happen to the Fed’s “dots”, where consensus anticipates no move for the 2017 dot, while the 2018 and 2019 dots could shift lower as the FOMC language turns slightly more dovish.