Tyler Durden's picture

Things In The Middle East Are About To Get Much Worse

There are major clashes occurring currently in The West Bank tonight as claims of 10s of thousands and Palestinians clash with Israeli soldiers. An Israeli army spokeswoman told the AFP news agency, "there are thousands of rioters there. They are rolling burning tyres and throwing Molotov cocktails and fireworks at soldiers and border police... The soldiers are responding with riot disposal means." Sadly, as the photos below reveal taken moments ago show, things appear set to get very much worse.



Tyler Durden's picture

America's Dumbest Move Yet: Seizing A Foreign Bank

Ten dark suited men entered the premises of FBME bank in Cyprus on Friday afternoon and took it hostage. The men were from the Central Bank of Cyprus (CBC). And they commandeered FBME because an obscure agency within the US government recently issued a report accusing the bank of laundering money. It just so happens that FBME... and Cyprus in general... is where a lot of wealthy Russians hold their vast fortunes. Bear in mind, there has been no proof that any crime was committed.



Tyler Durden's picture

Where China Goes To Outsource Its Own Soaring Labor Costs

30 years ago, the great outsourcing wave took millions of US low-skilled jobs and planted them right in the heart of China, which was about to undergo the fastest industrialization-commercialization-financialization experiment in history. $26 trillion in bank assets later, the world's biggest housing bubble, and a teetering financial system that every day depends on Beijing making the correct central-planning decision (of kicking the can one more day, of course) or else the biggest financial collapse in history will take place, all lubricated by years of inflation in everything and most certainly wages, and suddenly outsourding jobs in China is not all that attractive.  In fact, it has gotten so bad that China itself is now forced to outsource its own labor to cheaper offshore markets. Such as this one.



Tyler Durden's picture

The "Insider Threat Program" And The Government's War On Whistleblowers

The Obama Administration’s Orwellian government employee snitch network, dubbed the “Insider Threat Program,” first made headlines about a year ago. Fast forward a year, and it appears that several members of Congress are also becoming increasingly concerned. Some are starting to ask questions, but as usual, the “most transparent administration in history” is entirely nontransparent. What is clear since the Edward Snowden revelations is that the government has zero interest in reining in these programs. It merely wants to make sure the public can never learn about government criminality in the future. Hence the aggressive “war on whistleblowers.”



Tyler Durden's picture

You Know It's The New Normal When...

Two quick quick anecdotes about the new (ab)normal.



Tyler Durden's picture

America The Divided: Everyone Knows We Have Problems But There Is Very Little Agreement On Solutions

A house divided against itself will surely fall.  America is more divided today than it has been in decades, and the deep divisions that are tearing us apart continue to get even worse.  In fact, a newly released Rasmussen Reports national survey discovered that 67 percent of voters believe that America is even more divided now than it was four years ago. What most Americans can agree on is that we are facing tremendous problems as a nation.  Unfortunately, there is very little agreement on what the solutions to our problems are. 



Tyler Durden's picture

Food Inflation Watch: California Farmers' Water Costs Surge 700% After Government Cuts Supply

When we reported on the government's decisiosn to withhold irrigation water to California for the first time in 54 years, we warned there would be consequences: farmers are hit hardest as "they're all on pins and needles trying to figure out how they're going to get through this." Fields will go unplanted (supply lower mean food prices higher), or farmers will pay top dollar for water that's on the market (and those costs can only be passed on via higher food prices). Sure enough, as Bloomberg reports, farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.



Tyler Durden's picture

Japanese Inflation Holds Near 23 Year Highs As Food, Energy, & TV Costs Soar

Japanese CPI printed 3.6% in June, modestly down from May's 3.7% YoY, but hotter than the expected 3.5% YoY analysts predicted. If you don't eat food or use energy then inflation merely bit 2.3% of your income this year but if you did then you may have noticed that energy costs are 9.1% higher YoY, TVs +8.0%, and Food +4.1% (both showing no signs of making Japan's Misery Index any less, well, miserable). PPI also printed at 3.6% (23 year highs). So when the Japanese politicians say "Abenomics is well on its way to achieving its goals..." they must mean 'of lowering living standards for all Japanese people'.



Tyler Durden's picture

The Chart That Keeps Mario Draghi Up At Night

With peripheral European sovereign bond yields at or near record lows, no matter how much GDP gets downgraded (Italy), banking system collapses (Portugal), or loan losses surge (Spain); things must be great for borrowers, right? Wrong! And this is exactly what keeps Mario Draghi up at night... In fact, as the following dismal reality chart shows, real corporate lending spreads are at record highs... crushing the credit-created-growth dream of a European Renaissance.



Tyler Durden's picture

CEO Of Russia's 2nd Largest Gold Producer Is "Horrified" At Market Manipulation

The ongoing transition of gold price manipulation from conspiracy theory to conspiracy fact just escalated as Bloomberg reports, Peter Hambro, chairman of Russia's 2nd largest gold producer Petropavlovsk Plc, said he was "horrified" by the manipulation of the London fix given its importance to the industry. One wonders just how many of these individuals, involved in the manipulation, Hambro is dinner-party friends with?



Tyler Durden's picture

The Ten Plagues That Are Hitting America Right Now

Why are so many plagues hitting the United States all of a sudden? Yes, one can always point out bad stuff that is happening somewhere in the country, but right now we are facing a nightmarish combination of crippling drought, devastating wildfires, disastrous viruses, dying crops and superbugs that scientists don’t know how to kill.



Tyler Durden's picture

Creation Of S&P 500 ETFs Rises To All Time High

As if trying to figure out the impact of the central banks' balance sheets and China's record debt creation on stocks wasn't enough of a complexity (actually it really isn't that complex) for a market where fundamentals haven't mattered in 5 years, there is also the issue of ETF basket creation, best known for the daily 3:30 pm ramp when ETFs catch up with their underlying components in a rising market, giving it all a procyclical turbo boost. It is here that SocGen reports that in the past fortnight, there was record equity ETF creation, mostly focusing on the S&P 500.



Tyler Durden's picture

Iraqi Oil In Context: 60% Of OPEC Growth Expectations

While Iraqi crude represents about 4.4% of world production, or around 3.4 mmbd (5th largest in the world); enabling investors to shrug at any fears that ISIS will spread to the South and interrupt this supply (since it will be 'contained'); what many do not comprehend is that in such a tight oil market as we currently have, Goldman warns that as much as 60% of OPEC’s expected capacity growth over the next five years to come from Iraq. Production losses so far have been fairly small, and have only been felt domestically. However, the larger impact of the conflict potentially lies in the medium to long term.



Tyler Durden's picture

Steve "Debt-Is-Good" Liesman Meets Barack "Hope-Is-Better" Obama - Live Feed

Grab your popcorn as The Socialist Singularity comes to be... We are sure Steve Liesman will ask his 'economics reporter' questions while cow-towing to his glorious leader's position on job-destroying 'minimum wage' increases, unpatriotic (though legal) inversions, Fed-driven inequality, and the massive and unprecedented divergence between "bubble" markets and the minions that make it up... always remember "debt-is-good" but "hope-is-better."



Tyler Durden's picture

Liberian Man Tested For Ebola In World's Fourth Most Populous City

Yesterday, when reporting on the latest tragic development in the wost ever Ebola outbreak to sweep through west Africa, namely that the head doctor tasked with containing the virus had himself contracted it, we commented that the "only good news, if any, is that even as the epidemic which has raged for months, and now appears to be out of control, it has not spilled out of Africa into other continents yet." That may not be the case for much longer following an update earlier today by Reuters that a Liberian man in his 40s is being tested for the deadly Ebola virus in Nigeria's commercial capital of Lagos, a megacity of 21 million people, the Lagos State Health Ministry said on Thursday.



Do NOT follow this link or you will be banned from the site!