Norway’s Interest Rate Conundrum

We are experiencing 1970’s style stagflation, coming from the supply side, not demand. Prices are going up because Norges Bank continues to destroy the Norwegian Krone, turning it into the Nordic Peso. This is where they are “hiding” the damage to save rest of the economy. For example, housing prices will rise in NOK but fall in USD or gold (universal commodity) terms. It’s a shell game, leading to long term decline or even worse, an unexpected period of elevated inflation, requiring a rapid rise in interest rates. 

"Gloom" Returns To China's Economy: Industrial Production, Retail Sales Miss Lowest Estimates

Factory output grew just 5.4% in January and February from a year earlier, data released by the National Bureau of Statistics (NBS) showed, slowing from a 5.9% rise in December to the weakest since November 2008; the print matched the lowest Wall Street estimate. Meanwhile, retail sales rose 10.2% over the two-month period from a year ago, below the lowest Wall Street estimate of 10.5%, and far below the December’s 11.1% increase, pushing the trend growth in this series to lows not seen since early 2015.

Fukushima Five Years Later: "The Fuel Rods Melted Through Containment And Nobody Knows Where They Are Now"

:The fuel rods melted through their containment vessels in the reactors, and no one knows exactly where they are now... Tepco has been developing robots, which can swim under water and negotiate obstacles in damaged tunnels and piping to search for the melted fuel rods. But as soon as they get close to the reactors, the radiation destroys their wiring and renders them useless." 

Democracy, Be Damned - The "Sea Island" Conspiracy Reveals The Deep State

What we see at Sea Island is that, despite all their babble about bringing the blessings of “democracy” to the world’s benighted, AEI, Neocon Central, believes less in democracy than in perpetual control of the American nation by the ruling Beltway elites. If an outsider like Trump imperils that control, democracy be damned. The elites will come together to bring him down, because, behind party ties, they are soul brothers in the pursuit of power.

What The Average Zhou Thinks Of China's Housing Bubble: "Only After War Breaks Out, We'll Be Able To Afford It"

"[the empty homes] belong to the real estate speculators, the hoarders and the corrupt officials... It's just a game for the rich! Beijing isn't a livable city at all. The price makes it off-limits. It’s also a food chain: Only the richest and most capable people can live here... The housing market is part of the bubble economy. In 5 years or so, after a war has broken out, then the middle class will be able to afford a home."

Why Negative Rates Can't Stop the Coming Depression

The logic of lowering rates below zero is so boneheaded that only a PhD could believe it. It’s all relative, you see. It’s like standing on a train platform. The train next to you backs up…and you feel you’re moving ahead. Negative interest rates are like backing up. They give borrowers the illusion of forward motion... even if the economy is standing still.

Why Companies Don't Want You To Look At GAAP Earnings

"For FY 2015, the 20 companies in the DJIA that reported non-GAAP EPS reported an average year-over-year decline in non-GAAP EPS of -4.8%. These same 20 companies reported an average year-over-year decline in GAAP EPS of -12.3%." - FactSet

It's Not Just The Republican Party; The Corrupt, Cronyist Democratic Party Is Imploding Too

The protected classes love the Status Quo, because it exists to protect their privileges. The unprotected classes loathe the Status Quo for the same reason. Anyone who thinks the Democratic Party isn't imploding for the exact same reasons the Republican party is imploding is purposefully ignoring reality - a reality that threaten the protected classes' lock on wealth and power.

 

Everything Was Working Great... And Then Today's ECB Blog Post Left JPMorgan "Dazed And Confused"

"... this leaves us thoroughly confused. We had thought that the ECB was turning away from further moves into negative territory because of the impact on bank profitability and, hence, on credit availability. Constancio appears to say this is not the key reason. It is disappointing to us to see the ECB without a clear and convincing explanation for why it perceives a bound on rates at -0.4% at this point."

Pentagon Admits It 'Kinda Sorta' Deployed Spy Drones Over America

In what will likely not surprise too many, The Pentagon has admitted it has deployed drones to spy over U.S. territory for non-military missions over the past decade. Confirming yet another conspiracy theory is conspiracy fact, FBI director Robert Mueller testified before Congress that the bureau employed spy drones to aid investigations, but in a "very,very minimal way, very seldom." The report concludes, "the appetite to use spy drones in the domestic environment to collect airborne imagery continues to grow."

What Does Nasdaq Know?

Nasdaq risk is dramatically higher than S&P risk at current levels. Despite the exuberant ramp of the last few weeks, the ratio of Nasdaq VIX to S&P VIX is at its highest in over 6 months. This is worrisome since the last time Nasdaq traders were this much more concerned about future risk than S&P traders, was right before the August flash-crash collapse...

A Top Performing Hedge Fund Just Went Record Short: Here's Why

What remains most remarakable about Horseman Capital is that even as it modestly boosted its gross exposure to 59%, as of February the fund's net short exposure has risen from what was a previous record of 76%, to a whopping -88%, an unprecedented record even for one of the world's most bearish hedge funds!

Why Bond Traders Have No Idea What's Going On

"...markets have essentially lost confidence in the ability for central banks to stoke growth and inflation... we see very few reasons to be excited by today’s action or any development since the February 11th market lows."