- Presidential Task Force Recommends Overhaul of NSA Surveillance Tactics (WSJ)
- Monte Paschi's Largest Shareholder Says It Will Vote Against $4.1 Billion Capital Increase (WSJ)
- SAC Reconsiders Industry Relationships—and Its Name (WSJ)
- Icahn’s Apple Push Criticized by Calpers as ‘Johnny Come Lately’ (BBG)
- In Yemen, al Qaeda gains sympathy amid U.S. drone strikes (Reuters)
- Missing American in Iran was on unapproved mission (AP)
- In China, Western Companies Cut Jobs as Growth Ebbs (WSJ)
- U.S. lays out steps to smooth Obamacare coverage for January (Reuters)
- Las Vegas Sands Said to Drop $35 Billion Spanish Casino Proposal (BBG)
- Twitter Reverts Changes To Blocking Functionality After Strong Negative User Feedback (TechCrunch)
While the generic overnight futures meltup is present this morning, it is nothing compared to what the epic surge in the EURJPY early in the overnight session suggested it would be, and in fact the levitation in US equities driven as usual by Yen carry trades (just what is the P/E or PEG on the USDJPY, or the EURUSD for that matter?) is far more muted than seen in recent days. The main reason for the easing of the carry-risk signal pair is the increasing confusion over what may happen next week when increasingly more are convinced Bernanke will announce a Taper, and since everyone remembers the summer very vividly, the last thing anyone wants is to be the last Kool-aid drinker at the centrally-planned party.
The IMF just dropped another bombshell. After it recently suggested a “one-off capital levy” – a one-time tax on private wealth as an exceptional measure to restore debt sustainability across insolvent countries – it has now called for “revenue-maximizing top income tax rates”. The IMF’s team of monkeys has been working around the clock on this one, figuring that developed nations can increase their overall tax revenue by increasing tax rates. They’ve singled out the US, suggesting that the US government could maximize its tax revenue by increasing tax brackets to as high as 71%.
Meet Mike Caldwell. He is the maker of what seems to be the most popular physical bitcoins on the market, the Casascius coin. All Mr. Caldwell does is have people who want the coins produced send him a certain quantity of bitcoin and then for a $50 fee he puts the private key on a physical coin and sends them back. For this horrible crime of ingenuity and creativity, the U.S. government naturally, has decided to target him. Because they are too busy ignoring the real financial crimes happening out out there…
Economic history is pockmarked with policies instigated with the full intention of improving economic performance which have eventually turned out to do real damage. From the Napoleonic Wars to Weimar and up to the present day gold standards and Keynesianism, Deutsche's Jim Reid notes all too often economic institutions allow themselves to be stuck in intellectual cul-de-sacs at their peril. Such a risk appears alive and well today in the halls of the Federal Reserve. The outlook for tapering is mired in a continuing war between an institutional framework which sees QE as an emergency measure that has gone on far longer then was desired and an economy whose self-sustaining momentum is far from secure. The following statements from the FOMC members shows the tight-rope of uncertainty they are treading...
Thanks to the "pulling forward" of future production in the channel-stuffing-based inventory build of Q3, consensus estimates for the growth of the US GDP in Q4 2013 has collapsed to new lows for this cycle at a mere 1.5%. However, the "escape-velocity" recovery remains just around the corner as estimates for Q1 and Q2 2014 remain unimpacted by such nuance as reality...
Of the nine passengers aboard the small Makani Kai Air plane flight that crashed off the shore of Molokai Wednesday night, eight survived. The lone fatality was Loretta Fuddy, infamous for her "I have seen the original records" confirmation of the long-form birth certificate of the US President in 2011. Fuddy, who was 65 years old and had served as Hawaii's state health director since January 2011, is described as "selfless, utterly dedicated, and committed" is a "terrible loss for the state".
Last month, we offered a plain language translation of the Warsh op-ed, because we thought it was too carefully worded and left readers wondering what he really wanted to say. Translation wasn’t necessary for Fisher’s speech, which contained a clear no-confidence vote in the Fed’s QE program. Now William Poole is more or less saying that we have no idea what’s truly behind the Fed’s decisions. But he doesn’t stop there. He’s willing to make a prediction that you wouldn’t expect from an establishment economist... Poole’s refreshingly honest take on the Fed’s inner workings – from someone who truly knows what goes on behind the curtains – is more than welcome.
It takes the planet 1.5 years to restore what humanity burns through in a year. The silver lining, the US is #1 in something once again - consumption. In fact, it would take 4.4 Earths to sustain the planet if everyone lived like Americans. Rather disappointingly, the USA is 56th in the world for alcohol consumption per capita (though we suspect that will rise).
This past Friday the Bureau of Labor Statistics released the November jobs report which sent the mainstream analysts and economists into an ecstatic state as the numbers were substantially stronger than estimates. However, in reality, the employment report continues to show that employment is being driven almost entirely by population growth rather than real economic strength. The long term implications of these secular shifts are crucially important to the future of everything from investing, to living and the future of our economy. It is not too late to change our future, but it eventually will be if we do not begin to make changes soon.
"It is an elementary obligation of a human being to repay trust with sense of obligation and benevolence with loyalty. However, despicable human scum Jang, who was worse than a dog, perpetrated thrice-cursed acts of treachery in betrayal of such profound trust and warmest paternal love shown by the party and the leader for him. From long ago, Jang had a dirty political ambition. He dared not raise his head when Kim Il Sung and Kim Jong Il were alive. But, reading their faces, Jang had an axe to grind and involved himself in double-dealing. He began revealing his true colors, thinking that it was just the time for him to realize his wild ambition in the period of historic turn when the generation of the revolution was replaced."... Or, in brief, if you don't like your uncle, you can execute your uncle.
From liquidity-driven perception to the Keynesian endpoint economic reality... just follow the arrows...