The Stimulus Monkeys Are Screeching And The Central Banks Are Pushing On A String

There is overwhelming evidence that the rampant money printing of the past decade or two has done nothing to generate sustainable growth in mainstream living standards and real wealth. Yet the monkeys keep rattling the cage, promising and demanding more ZIRP(and now N-ZIRP) and more fraudulent purchase of government debt with fiat credit congered by their printing presses. Consider some striking proof of failure...

NYPD Put On High Alert After ISIS "Unleash Killings" Video, Feinstein Warns Of Terrorist Sleeper Cells

NYPD cops were put on high alert Saturday night after ISIS released a propaganda video urging the killing of "intelligence officers, police officers, soldiers, and civilians" in the US, according to The NY Post. This was then further fear-mongered by Senator Diane Feinstein who said Sunday she believes there are terrorist sleeper cells in the U.S. that could carry out attacks similar to the ones in France - thoiugh not mentioning any specific threats. Of course, this heightened terror alert comes at the worst possible time, as AP confirms what we discussed previously, that NYC has seen a steep decline in the number of arrests amid a rumored work slowdown by NYPD cops on the heels of disillusionment with de Blasio.

 

Nightmare On Wall Street: 2014 Banker Bonuses Set To Drop

To most people it would be shocking that after $60 billion in litigation charges, i.e., the "cost of doing criminal business" for just the first 9 months of 2014 and a ridiculous $178 billion since Lehman the there would be those who are stunned that bonuses on Wall Street may take a hit as a result of all this rampant, and caught, criminality. Well, "those" exist. They are called bankers, the same group which in poll after poll heading into the end of 2014 predicted that this bonus season would be far better than what was paid out in 2013 (and most of which spent the money well in advance). Alas, that is not going to be the case.

Steen Jakobsen Warns "Things Are About To Take A Different Turn In 2015"

People are becoming more critical of our current monetary system. In the past six years, central banks have promised us growth within six months’ time. They and the whole monetary and financial system have lost credibility. The banks’ profit to GDP is the highest in history in an economic environment where we have the highest amount of unemployment since WWII. There is something very wrong with the way the system works and this is all due to the overemphasis on trying to minimize the business cycle. The real conclusion of QE can only become visible if we experience the full business cycle. In Jakobsen's view, we have never been allowed to have a down cycle since 2008. But now, there is finally going to be a down cycle because central planners can’t print more money. As Jakobsen puts it: “Now is the time for the real economy to take over”.

The Fed Is Losing, If Not Already Lost, Control

Why does one believe the word “catastrophe” was used by The Fed's Charlie Evans? Hmmmmm? After all, the very articulated and polished minutes of what members expressed to one another as to set the current policy was just made public. We thought the verbiage of choice was now “patient.” Unless... You know you’ve either lost, or in the process, of losing control of the markets ear. In our opinion, this is an unveiled showing of possible outright panic developing behind the proverbial curtain.

Credit Giving Equities A Red Flag

Let’s focus on what happened in the lead up to the summer of 2011, right before the markets cratered on the back of everything that was going on in Europe and the downgrade of the US' credit rating by S&P. The leveraged loans index peaked at the start of the year and traded sideways up until that eventful August. This was a sign that something was not right in the credit markets; and equities pretty much followed the same pattern.  If we fast forward to today, we can see that the leveraged loans index peaked in July 2014, indicated by the red line in the graph, and has noticeably declined since; at the same time equities continued to move higher, a divergence which is a novelty in this bull market. Is this telling us something?  We believe so - it is a red flag for equities.

Arson Attack On German Newspaper After Printing Charlie Hebdo Cartoons; Thousands Take To Streets In France - Live Webcast

A day when over 700,000 people are said to have taken part in marches across France in Paris, Orleans, Nice, Pau, Toulouse and Nantes, following three days of deadly attacks in the Paris area to commemorate the victims' memories, there was another attack which may be tied to the Charlie Hebdo tragedy, this time by unknown assailants who launched an incendiary device on the building of German newspaper Hamburger Morgenpost shortly after 2am local time when nobody was in the building, and which, as Bloomberg reports, had in recent days reproduced the cartoons published by Charlie Hebdo. 

Oil Price Blowback: Is Putin Creating A New World Order?

"This is why Putin is Public Enemy Number 1. It’s because he’s blocking the US pivot to Asia, strengthening anti-Washington coalitions, sabotaging US foreign policy objectives in the Middle East, creating institutions that rival the IMF and World Bank, transacting massive energy deals with critical US allies, increasing membership in an integrated, single-market Eurasian Economic Union, and attacking the structural foundation upon which the entire US empire rests, the dollar." Up to now, of course, Russia, Iran and Venezuela have taken the biggest hit from low oil prices; but what the Obama administration should be worried about is the second-order effects that will eventually show up...

A Permabull Throws In The Towel: "Stocks Are Massively Overvalued", Key Multiples Are Post-War Records

"The median New York Stock Exchange (NYSE) stock is currently at a postwar record high P/E multiple, a record high relative to cash flow, and near a record high relative to book value!  As of June 2014, the median U.S. stock was priced at a post-war high at slightly more than 20 times earnings! Similarly, at about 15 times, the median stock is also currently priced at a record high relative to cash flow. Finally, the median price to book value ratio has only been higher than it is currently in two years since 1951 (in 1969 and in 1998 which were both followed by significant declines)!" - Jim Paulsen

The 'Real' Threat to Our Liberty Is The Repressive Machinery Of Empire

France’s president, François Hollande, described the attack as an “act of exceptional barbarity.” But killing people is hardly exceptional – neither for the empire nor its enemies. It is routine. And great empires follow their well-trodden paths, too, no matter what mockery they encounter. That path leads in a familiar direction – freedom of speech is chilled. But we know of no instances in which foreign enemies put it on ice. Usually, it is the empire’s own bureaucrats, snoops and protectors who do the chilling. And that cooling is already under way.

France Warns 'Terror Cells' Have Been Activated, US Issues Worldwide Travel Alert

Be afraid, be very afraid. While French Interior Minister Bernard Cazeneuve said Friday "The nation is relieved tonight," after the two standoffs concluded, as CNN reports, the French government's work is not over. French law enforcement officers have been told to erase their social media presence and to carry their weapons at all times because terror sleeper cells have been activated over the last 24 hours in the country, according to a French police source. Investigations continue into which terrorist group was ultimately responsible and, not be outdone in the fearmongery, The US State Department has issued a Worldwide Caution warning travelers, of the "continuing threat of terrorist actions and violence against U.S. citizens and interests throughout the world." Thank goodness we have the governments to protect us.

Princes Of The Yen - How Central Banks 'Transformed' Japan's Economy

The following documentary explains in detail how Japan’s post-war economic, political and social system was manipulated by the Japanese central bank. In all the gory detail, and worryingly prophetic of the current state of most western nations, "Princes of the Yen" reveals how Japanese society was transformed to suit the agenda and desire of powerful interest groups, and how citizens were kept entirely in the dark about this. It is an unprecedented challenge to today's dominant ideological belief system, and the control levers that underpin it. Piece by piece, reality is deconstructed to reveal the world as it is, not as those in power would like us to believe that it is..."Because only power that is hidden is power that endures."

US Ally Saudi Arabia Lashes Blogger 1000 Times For "Islam Insult"

Having topped the charts for beheadings in 2014, and enforced gender segregation, US ally Saudi Arabia has decided that free-speech is 'practically' punishable by death. During a week when 'free speech' is being defended by every Western nation desparate to condemn the terrorist acts against France's satirical magazine Charlie Hebdo, it is therefore quite stunning that, as The BBC reports, Raif Badawi - a Saudi Arabian blogger - was sentenced to 1,000 lashes (carried out over 50 weekly floggings), and 10 years in jail for insulting Islam. With 'friends' like this, who needs enemies?

An Endless Sea Of Energy

With crude oil prices in a strong corrective mode, energy depletion is understandably not on people’s minds these days. However, this is a scenario that many of us might have to deal with at some point in our lifetimes. We might be swimming in oil for now, but this should be no reason to become complacent. Our children and grandchildren will thank us for it.

Capitalism-Socialism-Communism: "A Republic Always Devolves Into An Oligarchy"

"Socialists/Communists try desperately to paint capitalism as the benefit of the greedy rich. People see the bankers as manipulating government but this is not inherent in capitalism, that is the corruption that infects all republics. A republic always devolves into an oligarchy, which is not freedom and is not capitalism."