The Tragicomedy Of Self-Defeating Monetary Policy
Submitted by Tyler Durden on 01/04/2016 - 21:25
Bill Dudley and the Federal Reserve (Fed), in their efforts to influence economic growth may have created a speculative and consumption driven environment that is crushing productivity growth. Ingenuity, not debt, made America an economic powerhouse. If we are to resume down that path we need the Fed to end their “self-defeating” policies and in its place we must demand ingenuity from them. The Fed, along with government, needs to properly incent productivity. The Fed should start this arduous task by removing excessive stimulus which will take the speculative fervor out of markets and allow asset bubbles to deflate.
This Just Became The Most Important Map In Geopolitics
Submitted by Tyler Durden on 01/04/2016 - 21:01
Because the sectarian divide is set to become the key geopolitical issue in the weeks and months ahead, we thought it an opportune time to present the following map from Goldman which does a nice job of delineating the Sunni-Shiite split in the Mid-East.
Some Canadians May Eat Themselves To Death Unless Oil Prices Rise, Doctor Warns
Submitted by Tyler Durden on 01/04/2016 - 21:00
In the heart of Canada's oil patch, suicide rates are on the rise, property crime is soaring, and food bank usage is at all time highs. In case Albertans didn't have enough to worry about as their economy collapses under the weight of lower for longer crude, one doctor now warns that a protracted recession could cause an obesity epidemic.
After Tumbling At Open, Chinese Stocks Erase All Losses
Submitted by Tyler Durden on 01/04/2016 - 20:40
Update: It's a miracle..."Someone" stepped in and bid the entire Chinese market higher off its huge opening gap down...
Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.
With A Straight Face, US Government "Finds" Number Of Retiring 20-24 Year-Olds Has Doubled
Submitted by Tyler Durden on 01/04/2016 - 20:26
For Americans between the ages of 20 and 24, the share of those sidelined over the past decade because they were in school increased, unsurprisingly, during the decade that included the Great Recession. What's more unusual is that the share of 20- to 24-year-olds who say they're retired doubled from 2004 to 2014.
"Refuse To Compromise", Ron Paul Implores "Purism Is Practical"
Submitted by Tyler Durden on 01/04/2016 - 19:45
The ever-growing number of Americans who are joining the liberty movement are not interested in “reforming” the welfare-warfare state. They also have no interest in “fixing" the Federal Reserve via “rules-based” monetary policy. Instead, this movement is dedicated to auditing, then ending, the Fed and stopping the government from trying to run the economy, run the world, and run our lives. If this movement refuses to compromise its principles, we may succeed in restoring a society of liberty, peace, and prosperity in our lifetimes.
Is 2016 The Year Of The Dollar Collapse?
Submitted by Tyler Durden on 01/04/2016 - 19:35
"In America, the idea is that if you work hard and play by the rules, you’ll be rewarded with a good life for yourself and a better chance for your children.” That’s what America used to stand for, and indeed much of the Western world. Freedom. Truth. Hard work and fair play. Building a better life. But those ideals have all but faded now, displaced by a new normal of war, debt, government surveillance, freedom-killing bureaucracy, and a monetary policy that decimates responsible, hard-working people for the benefit of a tiny elite.
Montel Williams Calls For "Shoot To Kill" In Oregon Showdown; Militiamen Respond They Are "Ready To Fight"
Submitted by Tyler Durden on 01/04/2016 - 19:23
Gold: The Unsurance Policy - Love It Or Loathe It
Submitted by Tyler Durden on 01/04/2016 - 19:20
Grant Williams, Of Things That May You Go Hhhmm, gave the following presentation at Mines & Money in London in early December laying out why he believes the gold price is languishing despite a wealth of what would ordinarily be positive catalysts. Currently, outside those who focus on precious metals, there is an enormous amount of apathy but, we suspect, that apathy will shortly turn to enthusiasm - an enthusiasm which will expose the rift between paper prices set in NY and the structural changes undergone in the physical markets over the last several years. Still, outside of today's small move, for now... Nobody Cares.
This Is A Very Troubling Chart
Submitted by Tyler Durden on 01/04/2016 - 18:54
The chart below, showing the total number of monthly FBI Firearm background checks - a direct proxy for gun purchases in the U.S., needs no commentary.
China Day 1: Monumental Destruction
Submitted by Tyler Durden on 01/04/2016 - 18:30
The main lessons from today is that market shocks can be quite quick, when they suddenly unravel. There is no need for markets to follow an observable pattern (therefore casting an omen just for you). Recall as well that this is just "day 1"! There are ~20 additional dramatic trading days ahead this month, where anything can precipitously take place.
Citigroup Says "It's Too Early To Panic"; Here's Why
Submitted by Tyler Durden on 01/04/2016 - 18:14
Panic. That is, according to some of the best strategists on Wall Street, the most concise summary of trader sentiment today following a near history rout in the market on the first day of trading of 2016. But don't worry: according to Citi's Brent Donnelly, "It is too early to panic." Here's why.
Jailhouse Diary Of A Libor Manipulation Scapegoat
Submitted by Tyler Durden on 01/04/2016 - 18:00
"It was over. The guard led me into a room daubed in graffiti, with the faint smell of cigarettes and urine. He allowed me to use the toilet, but it had no door – the days of privacy and dignity were over. A plastic toilet with no seat. I couldn’t really comprehend it."
US Government Discovers 10 Years Of "Processing Errors" In Construction Spending Data Slamming GDP
Submitted by Tyler Durden on 01/04/2016 - 17:42
Earlier today the US Census released its latest, November, construction spending data, which not only missed expectations of a 0.6% rebound, but tumbled -0.4%, the most since June of 2014, while all the recent data had been mysteriously revised lower. And then the source of the mystery was revealed, because in the fine print the government made a rare admission: all the construction spending data for the past 10 years had been "erroneous."
Late-Day Buying Panic Saves Stocks From Worst Start To January In 84 Years
Submitted by Tyler Durden on 01/04/2016 - 17:33
