Russia Adds Two More Warships To Mediterranean Task Force Near Syria
Submitted by Tyler Durden on 05/20/2013 - 22:12
A few days when reporting that the Russian Pacific fleet had crossed the Suez canal for the first time in decades in order to form a Mediterranean task force parked in Cyprus for obvious symbolic reasons (in close proximity to Syria and the Israel-parked Kearsarge), some observed that while the submarine support was adequate, the actual warship fleet designated to support any potential escalation in Syria would be largely insufficient. Perhaps the Russian Navy heard these complaints, and several hours ago RIA reported that two extra warships from the Russian Black Sea fleet had joined the Mediterranean task force, citing Capt. First Rank Vyacheslav Trukhachyov, has said. None of these recent deployment should come as a surprise: in March Russian Defense Minister Sergei Shoigu said a permanent naval task force in the Mediterranean was needed to defend Russia’s interests in the region. Read Syria, Cyrpus (where the task force will be on anchor indefinitely), and, of course, any and all western offensive involving Iran. And slowly but surely said task force is nearing completion.
- Comments: 130
- Reads: 16,616
Bitcoin – The Tyranny Test
Submitted by Tyler Durden on 05/20/2013 - 21:40
An increasing number of people have complained about governments and central banks in recent years, even using the word “tyranny” to describe them. They are, of course, called names in the establishment press: conspiracy theorists, mainly. Calling someone a name, however, does not erase their argument (at least not among rational people) and both the governments and the big banks stand accused. Up till now, however, these accusations were never accepted by the general public. The average guy really didn’t want to hear about the evils of government money. After all, that was the only thing he had ever used to buy food, clothes, gasoline, cars, and so on. He didn’t want to acknowledge the accusations because he feared what might happen to him without his usual money. Now, however, we have a brand new currency (called Bitcoin) available to us: something radically different. This gives us a new way to directly address the subject of monetary tyranny, providing a clear test for the governments and money masters of the world.
- Comments: 131
- Reads: 14,611
WTF Chart Of The Day: "It's All About The Earnings"
Submitted by Tyler Durden on 05/20/2013 - 21:10
"Earnings are the mother's milk of the stock market," is the oft-repeated anthem of a million marching lemmings; parroting the same phrase come hell or high-water in the dismal hope that they can gather moar assets-under-management, garner moar fees, and make moar TV appearances. However, as the chart below shows, we suspect perhaps given the reality of earnings expectations that the new normal mantra for stocks-for-the-long-term should be - "Central Bank liquidity is the PCP of the stock market."
- Comments: 65
- Reads: 19,425
Apple Meets The "Fairness Doctrine", Is Set To Pay A Whole Lot More In Taxes
Submitted by Tyler Durden on 05/20/2013 - 20:23
Last September, when we exposed the heretofore unknown entity actively managing Apple's $100 billion+ in offshore held cash (and thus untaxed in the US), we made the following "bold" prediction: "with the topic of finding effective tax loopholes which are perfectly legal, yet which apparently are unfair, serving as the basis of the entire presidential race to date, what Apple can be absolutely certain of is that once the farce culminating on November 6 is over, the government's eye will finally turn to minimizing "externalities" among such companies which have been able to pass through corporate tax savings to end consumers by abiding within the legal system that countless other muppet congressmen, senators and presidents have developed over the ages. Because while AAPL may have built the iPhone, very soon it will be only fair that it share its profits acquired over the years, and thus its cash balance...with the general public." Or in other words, in September we predicted the Apple "tax witchhunt" would take place shortly after Obama won his reelection. Today, it has officially begun.
- Comments: 86
- Reads: 12,244
The Arctic: The Final Energy Frontier
Submitted by Tyler Durden on 05/20/2013 - 20:18
The Arctic is expected to become more important in the coming decades as climate change makes natural resources and transport routes more accessible. Satellite data collected since 1979 shows that both the thickness of the ice in the Arctic and range of sea ice have decreased substantially, especially during the summer months. The melting of the ice facilitates natural resource exploration in the high north. U.S. Geological Survey estimates from 2008 suggest that 13 percent of the world's undiscovered oil and 30 percent of undiscovered natural gas reserves are located in the Arctic Circle. Reflecting the growing interest in the region, the Arctic Council granted six new countries (China, India, Italy, Japan, South Korea and Singapore) observer status during a May 15 ministerial meeting in Kiruna, Sweden.
- Comments: 174
- Reads: 8,605
Guest Post: Another Episode In The History Of Failed Manipulations
Submitted by Tyler Durden on 05/20/2013 - 19:40
In August of 2011, Argentina’s government slowly began to implement a series of actions destined to curtail the right of citizens to access US dollars (foreign exchange in general). The goal was and is to force savings into pesos, as pesos are after the taxable asset in a country that cannot access capital markets and fully monetizes its deficits. From that moment onward physical US dollars started to trade at a premium. First-hand experience on the ground in Patagonia confirm the irreversible damage caused by interventionist policies: Widespread poverty, abandoned infrastructure, scarcity of consumer goods, unseen unemployment and criminality, and the madness of hedging against inflation with the purchase of new cars. The streets of any forgotten small town in Patagonia are filled with brand new 4×4 vehicles that would be the envy of many in North America. We can now see that the sustainability of the manipulation in a segmented/broken foreign exchange market causes a negative carry, which would create a quasi-fiscal deficit in Argentina (i.e. the deficit of the Banco Central), fully opening the gates to hyperinflation.
- Comments: 32
- Reads: 9,678
Stunning Time-Lapse Video Of 2-Mile Wide Oklahoma Tornado
Submitted by Tyler Durden on 05/20/2013 - 19:03
Courtesy of NBC, here is 10-x sped up footage of the massive 2-mile wide tornado ripping through Oklahoma one short hour ago.
- Comments: 244
- Reads: 109,490
Guess Who The Dirtiest Dirty Shirt Is
Submitted by Tyler Durden on 05/20/2013 - 18:42
We continue to hear that the US is the cleanest dirty shirt or that the US economy is doing 'relatively' well as a reason for buying stocks now. Not only is this plainly incorrect (as we have pointed out rather vociferously in the recent past) it flies the face of the disconnect between macro and markets. The fact of the matter is that year-to-date, the US economic data performance is the equal worst (with Japan) of all major economic nations and regions. That is a bucket-load of hope for the second-half of the year - or, as we noted recently, is it just plain silly.
- Comments: 22
- Reads: 11,296
Oklahoma Tornado Live Feed - "This Is About The Worst Damage I Have Ever Seen"
Submitted by Tyler Durden on 05/20/2013 - 18:10
The devastation from what is being described as a mile-wide tornado is horrifying according to local news. The live feed and raw footage of the aftermath suggests casualty rates will be significantly higher as the evening progresses... "The tornado on the ground right now is huge and has hit through populated areas,"
- Comments: 148
- Reads: 20,013
White House Explains: Obama Didn't Know What He Knew When Everyone Else Knew What He Should Have Known
Submitted by Tyler Durden on 05/20/2013 - 18:04
Here is The Hill with the White House's official explanation for what happened: "White House officials were notified of a Treasury Department inspector general report on the IRS but elected not to tell President Obama about it." In other words, neither the IRS was not aware of what is going on (recall the countless "I don't knows" and "I don't recalls") and apparently, neither was the president. And in fact, it was someone else's executive duty to make the decision what the chief executive of the nation is and isn't allowed to know.
- Comments: 230
- Reads: 15,968
Saudi 'Religious Police' Warn Anyone Using Twitter Will Go To Hell
Submitted by Tyler Durden on 05/20/2013 - 17:48
You know something isn’t right in your country when you have a “religious police force.” You know something is really, really not right in your country when the head of that religious police force starts condemning twitter and saying its users will go to hell as a consequence - echoing comments from the imam of the Grand Mosque in Mecca in April who used his sermon – seen by millions on TV – to warn that Twitter was a threat to national unity.
- Comments: 96
- Reads: 6,942
What Could Possibly Go Wrong Here?
Submitted by Tyler Durden on 05/20/2013 - 17:13
You know it's getting frothy when... "We're seeing many people cash out 401(k)s or IRAs because they want to take advantage of the [real estate] market." As CNNMoney reports, in order to get in on hot housing markets, amateur investors are buying up homes and taking risky measures - like tapping their retirement accounts - to fund the deals. As one adviser noted, "our average client has retirement accounts of about $150,000 and is looking to buy one or two properties," he said. "After 2008, they didn't trust Wall Street. They wanted hard assets." but as with every bubble there is always the greater fool to rely on - "They bought a lot of stuff cheap last year, but now they're paying market value," said Jack McCabe, a Florida-based real estate consultant. "Sometimes they're overpaying... There's no way they can get an 8% return buying at today's market prices." The problem, of course, is amateur investors sometimes spend all their free cash on their purchases, as "a whole lot of the people in the markets are not experts." If the real estate market turns south again, that could leave a lot of investors in dire financial condition for their golden years.
- Comments: 98
- Reads: 12,884
SACked: Cohen Considers Closing
Submitted by Tyler Durden on 05/20/2013 - 16:40It appears that the noose is tightening and the wobbly-chair that Steve Cohen is standing on is getting wobblier... As Bloomberg reports, after five years under investigation for insider trading Steve Cohen is considering a 'deal' with prosecutors that would shut his $15 billion fund to outside investors and (as we noted this morning) shift a family (friends and employees) office.
- *COHEN SAID TO HAVE DISCUSSED DEFERRED PROSECUTION AGREEMENT
- *COHEN SAID TO CONSIDER RETURNING OUTSIDE INVESTORS' MONEY
- *COHEN SAID TO CONSIDER CONTINUING AS A FAMILY OFFICE
The deferred prosecution is intriguing as "when a company enters into a DPA with the government, or an NPA for that matter, it almost always must acknowledge wrongdoing..." and the clock is ticking with the statute of limitations up at the end of July.
- Comments: 44
- Reads: 6,622
Gold's Best Day In 11 Months As Stocks Close Red - Only 8 Hours To Wait 'Til Tuesday Though
Submitted by Tyler Durden on 05/20/2013 - 16:15
All major US cash equity indices closed an odd shade of 'green' today which some have called 'red' - though only marginally and Treasuries ended the day practically unchanged (with 10Y +1bps). But the real action took place away from these two asset-classes. Precious metals were monkey-hammered at their open overnight but staged a miraculous recovery leaving gold with its best gain since June 2012 (didn't hear too much about that on TV?). Credit markets notably under-performed - never managing to get into the green on the day. VIX rose over 0.5 vols to close back above 13%. On the bright side, only a few more hours until Tuesday...
- Comments: 120
- Reads: 17,286
Artificial Growth Exhibit A: China's Inventory Stockpiling Hits All Time High
Submitted by Tyler Durden on 05/20/2013 - 15:49
Need a quick GDP boost in a world in which the uber levered consumer is tapped out and has no more savings or purchasing power, in which the government is facing an existential socialism or bust crisis even as global sovereign debt levels are at unseens before levels, and in which global trade has collapsed (so there go the C, G and (X-M) components of GDP)? No problem, just add some I for Inventory. Better yet, add a whole lot of I, especially if you are that global growth dynamo, China, which over the years many have accused of having taken the term "overcapacity" and put it through the Barry Bonds juicer yet where courtesy of a central-planning regime that has made sure nothing appears to be unused, except for the occasional ghost city or empty mall, proof of such overcapacity has been scarce in official, government data.
- Comments: 20
- Reads: 8,298
