China Car Sales Suffer Biggest Crash On Record To Start 2016

The dream of transition to a 'consuming' economy just crashed into the wall of excess debt and leverage. 2016 has started with a 44% collapse in China passenger car sales. This is the biggest sequential crash and is 50% larger than any other plunge in history. Coming at a time when vehicle inventories are near record highs relative to sales, the world's automakers - all toeing the narrative line that growth will be from China - now face a harsh reality of massie mal-investment deja vu.

China's Latest Problem: Half A Trillion Dollars In Unpaid Bills

PBoC governor Zhou Xiaochuan is worried. The amount of debt accumulated by the country's corporate sector is "too much" and poses a "macroeconomic risk." Compounding the problem: the very same corporate sector has more than a half-trillion dollars in unpaid receivables on its books.

Regardless Of Who Wins In November, Freedom & Liberty Both Lose

This is the new America system: a democratic politics of power, plunder and privilege in a perpetual social conflict of social classes, racial groups and gender identities. It is a system in which the individual seems weak, small and powerless; and needing “leaders” who will use politics to bring them to the social, economic, racial and gender “promised lands” that are laid before the constituent-voters, if only this or that political candidate is elected to set the world right for the benefit of a coalition of collective groups who want certain things and to which they are told they are entitled. This the outcome of the journey from liberal individualism to political collectivism.

Is There A US-Russia Grand Bargain In Syria?

It’s spy thriller stuff; no one is talking. But there are indications Russia would not announce a partial withdrawal from Syria right before the Geneva negotiations ramp up unless a grand bargain with Washington had been struck. Tradeoffs seem to be imminent. And that would imply a power shift has taken place above Obama - who is essentially a messenger, a paperboy.

Black Cop Exposes Anti-Trump Protesters As "Most Hateful, Evil People Ever"

Unfortunately for the establishment, the ongoing acts of sponsoreds civil disobedience are not creating the groundswell of anti-Trump terror they had hoped would bring down the anti-establishmentarian. In fact things have gone so far that even Arizona cops questioned their safety among Soros' puppet-protesters. As African-American police officer Brandon Tatum exclaims, the profane-language-using demonstrators "were the most hateful, evil people he has ever seen."

Why The True Cost Of Living Is Much Higher Than We're Told (Or Sold)

Over the past decade, we've been told that inflation has been tame -- actually below the target the Federal Reserve would like to see. But if that's true, then why does the average household find it harder and harder to get by? The ugly reality is that the true annual cost of living is far outpacing the government's reported inflation rate. By nearly 10x in many parts of the country.

Must Watch Video - "The Veneer of Justice in a Kingdom of Crime"

No one in American society is supposed to be immune from criminal prosecution, yet the Justice Department in the Obama administration took it upon themselves to grant such immunity to the mega banks and their employees. This is a tale of the traitors operating within the highest levels of the U.S. government, and it is a saga of how the rule of law was openly torched in front of our very eyes.... Until justice is served, this nation will never heal. Economically, culturally or spiritually.

What’s The Frequency Janet?

To now dismiss Fed policy causation as “correlation theory” is laughable. The markets are now so intertwined and Fed dependent the observation of whether correlation is causality has been rendered moot. Without the Fed – there is no market. That’s now a proven fact. Period.

JPM: The Short Squeeze Is Largely Over

"Three quarters of the previous selling of equity ETFs during January and February has been reversed in just three weeks. CTAs appear to have fully covered their shorts. Indeed both CTAs and Discretionary Macro hedge fund managers appear to be close to neutral right now... we conclude that the short covering phase that started a month ago is very advanced."

Brazil Needs A Stronger Currency Like It Needs A Hole In The Head, Goldman Warns

As we’ve documented extensively this month, the BRL is now trading pretty much exclusively on Lula, as his fate is seen as a proxy for whether Rousseff will ultimately be forced from office. The market apparently believes that anything would be better than the current political arrangement when it comes to shoring up the country’s flagging economy which last year plunged into what might as well be a depression. Now that the high court has blocked his appointment, Brazil should be wary of further currency appreciation, Goldman warns, as an economic rebalancing requires a weaker BRL.

NIRP Hail Mary

Negative interest rates are a tax! Not a traditional tax paid to the government, but an expense paid, on savings. Years of policy designed to encourage spending and discourage savings is likely reaching the end game; the point where those exhibiting prudence must be punished to keep the game going.  At some point, and likely soon, central bankers will be forced to realize the efficacy of lowering interest rates is vanishing and is hindering achievement of their goals. When this occurs a paradigm shift in the way monetary policy is conducted will likely occur. Investors that understand this dynamic, and what it portends, will be in a much better position to protect and profit from the asset price adjustments that lie ahead.

All The Latest Chinese News In Just 7 Bullets

(1) Incoming Jan-Feb data still choppy; (2) Our Synthetic Growth Index (SGI) likely down for Jan and Feb, after up Sep-Dec; (3) As China slows, no problem is too small for a new policy fix; (4) Housing: too many vacant units, in the wrong places, wrong size and wrong price.; (5) SOEs:  excess capacity, old, inefficient in most key China industries. (6) Equities:  recent rally welcome but markets still broken just when more equity financing is needed. (7) NPLs: from past bad decisions, rising sharply. 

KKK-Dressed, Nazi-Saluting Protester Beaten Up By Black Trump Supporter At Arizona Rally

Violence at a Trump rally? Hardly unexpected. However, make that violence between by a black Trump supporter who unloaded on an abusive, KKK-dressed, Hitler-saluting white protester who was being escorted out of the building, and the absurd shock value suddenly evolves to such surreal proportions one would expect a Salvador Dali portrait of Trump in the oval cabinet to emerge any day now.

A Strange Pattern Emerges When Trading The US Dollar In 2016

As Bank of America's FX quant strategist writes, "ahead of the Fed, the USD was already trending lower against 8 out of 9 G10 currency pairs with GBP being the only exception. The surprisingly-dovish Fed has only further accelerated the decline in the US dollar. The decline started in late January and has occurred during the critical local New York trading hours. The US hours downtrend looks likely to continue in the near future."