"There Are A Hundred Flashing Red Warning Signs Coming From The Environment"

There are a hundred flashing red warning signs coming to us from the environment, the Earth, and all of its supporting ecosystems. Either we get off the 'growth at any cost' express train or we risk wrecking important, valuable, essential and beautiful species, ecosystems and support systems that we rely upon for our health, our wealth, and our happiness. Like the economy, ecosystems are complex systems. That means that they owe their complexity and order to energy flows and, most importantly, they are inherently unpredictable. How they will respond to the change by a thousand rapid insults is unknown and literally unknowable.

About That 2100 S&P Target For 2015, Goldman Was Only Kidding, Now Sees Even More Ridiculous Multiple Expansion

It was just one short month ago when, on the back of the soaring dollar (which has since soared even more), as well as "diminished global GDP growth and lower crude prices", Goldman's David Kostin cut his EPS for 2015 and 2016 from $125 and $132 to $122 and $131. Then, it was just two short weeks ago, the same David Kostin said "we expect the P/E will contract and the index will slip during the second-half of 2015 as the Fed takes its first step in the long-awaited tightening cycle. Our S&P 500 year-end 2015 target of 2100 implies a modest 5-10% P/E multiple compression to 16.0x our top-down 2016 EPS estimate or 14.6x bottom-up consensus earnings estimates." And then, with the S&P now about 20 points away from Goldman's 2015 year end target (and just 120 points from the government-backed hedge fund's 2016 year end target!), the very same David Kostin admits that he was only kidding and that the S&P may in fact rise to a whopping 2300 in the coming year...

IceCap Asset Management: The Third Law Of 'Stock Market' Motion

Astonishingly, Newton’s Third Law seems to be either forgotten or dismissed altogether, and this is a shame because the world’s financial pendulum is in the process of reaching that ever so brief pause, after which it then begins to swing in the other direction. To many thoughtful investors, it has become crystal clear that the world is indeed on the cusp of a dramatic change in direction. There will be extreme cases of financial, social, political and economic losses. But there will also be extreme cases of financial gains – the secret is understanding how and where global capital will flow.

"Serial”-izing The Dow’s New Highs

Another day, another record for the Dow Jones Industrial Average, Main Street’s favorite measure of Wall Street stock performance. How did we get here?  The answer sits in a comfortable blend of good returns from a range of industry sectors.  Seven of the Dow 30 names have added over 100 points to the total 1,303 point gain for the Average this year: Visa (251 points), UnitedHealth (185), Nike (136), 3M (129), Disney (116), Johnson & Johnson (111) and Home Depot (106).  By contrast, there is just one 100 point loser: IBM (negative 137 points). The collapse in energy stocks hasn’t hurt the Dow very much – just 113 points year to date related to declines in ExxonMobil and Chevron.  And to satisfy the most common “What if” scenarios we hear: adding Apple on its split day this June would have added an estimated 166 points, and Facebook’s whole-year 2014 performance would have pushed the Average higher by 162 points.  

It's Official (Finally): The US Is No Longer The World's #1 Economy

It seems rather appropriate that just seven days after the US government hit a whopping $18 trillion in debt, mainstream financial media has picked up the IMF’s recent World Economic Outlook report, which puts the US economy as #2 in the world. China obviously has its own substantial problems, but over the last several decades one thing is for certain - China (and Asia in general) is a place where production and savings are valued. The universal law of wealth is to produce more than you consume. The West has completely broken that.

US Hostage Held By al Qaeda Killed In Botched Special Ops Rescue Attempt

Overnight, two hostages including an American photojournalist, 33-year-old Luke Sommers, who was held for more than a year by al Qaeda's Yemen branch, as well as a South African teacher, Pierre Korkie, were killed in a botched rescue attempt by US special operations forces. This was the second rescue attempt in as many weeks. According to the WSJ, Luke Somers, 33 years old, was killed by militants, U.S. Defense Secretary Chuck Hagel said Saturday. Several members of al Qaeda in the Arabian Peninsula, or AQAP, were also killed in the raid.

Ron Paul Warns, Reckless Congress Just 'Declared War' On Russia

Yesterday the US House passed what I consider to be one of the worst pieces of legislation ever. H. Res. 758 was billed as a resolution “strongly condemning the actions of the Russian Federation, under President Vladimir Putin, which has carried out a policy of aggression against neighboring countries aimed at political and economic domination.” In fact, the bill was 16 pages of war propaganda that should have made even neocons blush, if they were capable of such a thing.

The Ferguson Conundrum Solved By Community Security

The best option, the only option when faced with a conundrum like Ferguson, is for residents to kick government out of the picture completely. Whatever problems might be encountered during such a transition would be a happy trade over the constant crisis wrought by political “mismanagement” or manipulation. In the end, corrupt government will never go away unless we stop handing our responsibilities over to them — and this includes security. We must stop trying to change the system by following the rules that perpetually benefit the system. If we are ever going to get rid of elitist control, we have to step outside the false paradigm and play our own game by our own rules.

Video Of The Day – This Is What Happens When You Call The Cops

In a healthy, moral and civilized society defined by the rule of law, police can play an important role. They should be people who come from the communities they promise to “protect and serve.” They should view themselves as a part of these communities, not as something separate and distinct. Police should see their jobs as having a great degree of risk, and must be willing to accept that risk. This means not pretending to be a solider at war, not choosing the most violent solution to every problem, and not viewing the citizenry as milk cows ready and willing to be drained of their assets via civil forfeiture.

Unfortunately, this isn’t the state of the police in America in 2014, and it’s quickly becoming obvious to everyone.

150 Billion Reasons Why Low Oil Prices Are Not Good For The Global Economy

While the clear narrative forced upon the investing (and consuming) public is that lower oil prices are great for the economy - which is utter crap (as we have explained here and here) - the fact of the matter both primary and secondary effects are extremely significant... and already occurring. As Reuters reports, global oil and gas exploration projects worth more than $150 billion are likely to be put on hold next year as plunging oil prices render them uneconomic as the cost of production has risen sharply given the rising cost of raw materials and the need for expensive new technology to reach the oil. As one analyst notes, "at $70 a barrel, half of the overall volumes are at risk."

Voices Grow Louder To End The US Dollar's Reserve Status

When no lesser establishmentarian than Obama's former chief economist Jared Bernstein called for an end to the US Dollar's reserve status, it raised a few eyebrows, but as the WSJ recently noted, the voices discussing how the burden of being the world's reserve currency harms America, more than just Vladimir Putin is paying attention. While some argue that “no other global currency is ready to replace the U.S. dollar.” That is true of other paper and credit currencies, but the world’s monetary authorities still hold nearly 900 million ounces of gold, which is enough to restore, at the appropriate parity, the classical gold standard: the least imperfect monetary system of history.

Crisis Chronicles: The Panic Of 1819 - America’s First Great Economic Crisis

"The nation was leery of a national bank with seemingly endless power to manipulate the money supply and the Second National Bank of the United States was attacked by both the expansionists and the sound money opponents. It was during this period that future President Andrew Jackson shaped his anti-Bank views in Tennessee while his future hard-money arm in the Senate, Thomas Hart Benton (Old Bullion), shaped his views in Missouri, two of the hardest-hit states. The debate over central banking, and the concern over deflation and inflation, continue two hundred years later."