The Logic Of Interventionism (Or How To Wake Up In A Prison)

The mainstream media is still full of articles about the alleged evils of cash, which we regard as a typical “trial balloon” launched by the powers-that-be. A salami tactic is therefore employed, not least because this ensures that there will be little protest. A new law or regulation may not be seen as overly onerous in isolation. The average citizen may well think – if he or she is even aware of the adoption of a new law: “Oh well, it is a bit creepy” or “it does make life a bit more difficult”, but “if it helps to keep us safer/more prosperous/more free/saves the planet, I can put up with it”. And so one freedom after another is taken away. If pursued to its logical conclusion, no freedom will be left in the end.

Moscow Furious After Both Belgium And France Freeze Russian State Assets

Both France and Belgium have moved to freeze Russian state assets on Thursday, prompting an angry response from Moscow and serving to further inflame tensions between Russia and Europe amid escalating violence in Ukraine and an increasingly aggressive stance towards the Kremlin on the part of Washington and NATO.

The Corporate Earnings Cycle Has Just Turned Negative In The US

The evolution of corporate earnings in their broadest form can provide a useful indication of the subsequent performance of the US stock markets. This makes intuitive sense. Growing earnings are generally a reflection of good economic conditions which should be bullish for equities. The opposite also applies of course. But it is at key turning points that this indicator becomes particularly insightful, in our opinion even more than the actual level of the price-earnings ratio.

Russia, Greece Ink Pipeline Deal As Gazprom Boosts Ukraine Bypass

Greece completes stage one of the dreaded "Russian pivot" as energy ministers from Athens and Moscow ink an MOU on Gazprom's Turkish Stream pipeline. Meanwhile, Gazprom signs a deal with Shell and others to double the capacity of the Nord line, a move which will, over time, decrease the energy giant's dependence on Ukraine for transport.

ECB Admits Emergency Call On Greece ELA Planned For Friday

Having vehemently denied teh rumor that Benoit Coeure specifically said he questioned whether Greek banks will open on Monday, The ECB has, rather awkwardly, admitted that:

*ECB SAID TO HOLD UNSCHEDULED CALL ON GREECE ELA ON FRIDAY

Given the accelerating outflows and implicit bank run today's comments will create, if The ECB does not re-up the ELA, it is indeed over for Greek banks (unless Russia or China step in over the weekend) come Monday morning.

There Will Never Be Enough Good Jobs Ever Again

It’s over. Except for a short moment or a wild and self-exhausting governmental mandate (both of which are doubtful), there will never again be enough “good jobs” to go around. That model is gone and we need to root it out of our imaginations.

ECB "Blesses" Greek Bank Runs, Says Unsure If Banks Will Reopen Monday

Just minutes after Greek FinMin Varoufakis warned people were trying to "incite capital flight" from Greece and Dijsselbloem stated that "capital outflows from Greece are worrying," Reuters is reporting that The ECB dropped the bank run hammer:

ECB TOLD EURO ZONE FINANCE MINISTERS IT WAS NOT SURE IF GREEK BANKS WOULD BE ABLE TO OPEN ON MONDAY- OFFICIALS

Friday sees Russia-Greece meetings and Euro area leaders are supposedly meeting on Monday evening due to the seriousness of the situation so it appears the endgame is looming large one way or another.

IMF Previews The Market's Final Days: Central Banks "May Have To Become Market Makers"

"The time it takes for the global regulatory community and central banking world to find a solution this time may be longer than the time where one episode of big illiquidity happens. Then the question is what to do. In my view the only thing that can be done at that time is that central banks should become again market makers of last resort."

Is Greece Hurting The Euro Or The Euro Hurting Greece?

So a nation that had essentially 40 continuous years of production expansion suddenly goes into a tailspin upon changing up the monetary basis of trade suggesting that we can pinpoint the culprit. A 5 year old could pick up on this actuality. So how is it that these supposed omniscient academics at the ECB are simply incapable of seeing the blatantly obvious?

Fear Trumps Greed As Chinese Stock Bubble Canary In The Coalmine Croaks

Chinese stocks had a tough night with CHINEXT dropping back into official correction once again and the rest of the Chinese stock euphoria fading systemically. In fact, Chinese stocks have gone nowhere in the last month - which is a major problem for a margin-loan-driven ponzi-fest. However, there is a much more worrying canary in China's coalmine which as one analyst warns means "investors are becoming more fearful than greedy." The "No-Brainer" China IPO Trade has tumbled in the last few weeks as limit-up gains disappear, and is nearing a bear market.

Eurogroup Meeting Ends Without A Deal, Greek Belligerence Grows

Another day over, and another failure to reach a Greek deal, except for the usual pathetic rumor mill allowing "someone" to exit positions:

  • NO DEAL AT EUROGROUP, SAYS DOMBROVSKIS ON TWITTER

As Greek belligerence grows:

  • GREECE WON'T BE BLACKMAILED, GREEK GOVT OFFICIAL SAYS
  • GREEK GOVT SAYS SOME PEOPLE SEEKING TO INCITE CAPITAL FLIGHT

And now, onward to the next Eurogroup meeting.