“If the US is serious about ensuring that China does not dominate these waters, then the longer it waits, the riskier its freedom-of-navigation activities will become.”
If you’re a fan of dovish policymakers who are committed to Keynesian insanity, you can always count on Minneapolis Fed chief Narayana Kocherlakota who is out today with the latest hint that NIRP is coming to America.
Just two weeks after House speaker John Boehner dramatically announced his premature resignation without cause from his position seemingly in an attempt to difuse the tension within the GOP, there has been another just as dramatic development when moments ago we learned that Boehner's chosen successor Kevin McCarthy has withdrawn his candidacy for the speaker position: "While I am grateful for the encouragement I’ve received, I will not be a candidate." This puts in jeopardy not only any future negotiations over US government funding when the continuing resolution expires in mid-December but more importantly puts into question what happens with the US debt ceiling when the US government runs out of emergency measures some time in early November as Jack Lew has warned is the deadline for getting a deal struck.
Following two stellar auctions earlier this week, when both the 3 and 10 Year showed substantial demand, and in the case of the latter a near record surge in foreign central bank takedown, today's final 30Year auction went without a glitch as the Treasury sold $13 billion in the RN0 reopening, which priced at 2.914%, through the When Issued 2.917%, lower than the 2.98% in September, and virtually unchanged from the yield the 30Y paid at the last auction of 2014. In other words, just like stocks, so the long end of the curve has gone exactly nowhere in 2015.
To combat Islamic militants the White House says threaten national interests, the U.S. has spent nearly $100 billion to arm and train foreign militaries across the Middle East, North Africa and South Asia, an analysis by Vocativ shows. And nearly all of them are reeling from setbacks that threaten to undermine what’s become a core component of American foreign policy in these regions. As a former military commander and United States ambassador in Afghanistan recently noted, "our track record at building security forces over the past 15 years is miserable."
Americans who are unemployed (or earn less than $50,000 per year) are the most upbeat in six months accoridng to Bloomberg Comfort survey data. Despite near-record layoffs, stagnant incomes, global instability, and domestic uncertainty, the jobless are happier and happier as full-time-workers lose faith.
The urgency of the moment favors cooperation, while geography gives Russia major advantages in leading the fight. The highly charged political atmosphere in the U.S., in the midst of a Presidential election, only adds to the fog of war in Syria, forcing public denials and secret agreements where there needs to be utmost clarity, making military cooperation in Syria almost impossible, while raising the risks of accidental conflicts between so-called partners. Adding to the confusion is the increasingly cordial meetings between Russian and Saudi leaders.
WTI Crude has recovered the losses following yesterday's DOE-reported inventory and production rise as it appears comments from OPEC Secretary-General Al-Badri told The IMF that demand will climb more this year than previously projected (coming on the heels of EIA's comments that oil companies worldwide will cut investments in oil exploration and production by a record 20 percent this year.) USD weakness is also helping drive algos to run stops in crude.
Over the past 5 years, the one forecast that was clear to anyone with even an introductory grasp of economics and finance, is that a Chinese economic collapse is inevitable and just a matter of time. Apparently, in retrospect, this was also clear to the head of the IMF, Christine Lagarde, who during a press conference in Lima, said the following:LAGARDE SAYS CHINA'S SLOWDOWN WAS PREDICTABLE, IS A "GOOD MOVE" There is just one problem with that: of all market participants, the IMF is perhaps the only one who did not predict China's slowdown. Quite the opposite.
US equity markets have shrugged off China's disappointing open and surged back to the highs of the day (with Trannies leading). However, a few of the "gurus" favorite stocks are not buying the dip... as the so-called FANG names are notably weaker over the last 3 days...
"What we're talking about here is global Internet censorship. It will criminalize our online activities, censor the Web, and cost everyday users money. This deal would never pass with the whole world watching - that’s why they've negotiated it in total secrecy."
Bill Gross Sues PIMCO "Cabal" Over Ouster, Seeks "Hundreds Of Millions", Blames El-Erian - Full ComplaintSubmitted by Tyler Durden on 10/08/2015 - 11:14
“Driven by a lust for power, greed, and a desire to improve their own financial position and reputation at the expense of investors and decency, a cabal of Pimco managing directors plotted to drive founder Bill Gross out of Pimco in order to take, without compensation, Gross’s percentage ownership in the profitability of Pimco."
Are you ready for this... are you sitting down... you better be sitting down. Cause here it comes...
Following yesterday's flip-flop on TPP, Hillary Clinton has unleashed some new financial system 'policies' this morning, the most crucial of which includes the provision of a transaction tax which will dramatically penalize high-frequency traders (gratifying critics of HFT's instability-creating market structure). The question is, who is she trying to appease with this 'policy'? The answer is simple - Follow the money... once again.
The Power Elite aristocracy isn't dumb; they fully understand once the illusion of their shared purpose and identity with the commoners is shattered, their invulnerability is history.