Archive - 2013

December 31st

The Trends To Watch For In 2014

The following 8 key dynamics (from government over-reach and economic stagnation to civil discontent and beyond) will play out over the next two to three years...

2013 Summed Up In Just One Chart

Given it is the last day of what is being reported as a breath-takingly good year, we thought a gentle reminder of the reality underlying the exuberance was worthwhile. Presented with little comment, we give you 2013... the death cross...

2013 – Dense Fog Turns Into Toxic Smog

As usual, in 2013, sticking to facts was a mistake in a world fueled by misinformation, propaganda, delusion and wishful thinking. Those in power have successfully held off the unavoidable collapse which will be brought about by their ravenous unbridled greed, and blatant disregard for the rule of law, the U.S. Constitution and rights and liberties of the American people.

"There is no disputing the facts. The economic situation is deteriorating for the average American, the mood of the country is darkening, and the world is awash in debt and turmoil. Every country is attempting to print their way to renewed prosperity. No one wins a race to the bottom. The oligarchs have chosen a path of currency debasement, propping up insolvent banks, propaganda and impoverishing the masses as their preferred course. They attempt to keep the masses distracted with political theater, gun control vitriol, reality TV and iGadgets. What can be said about a society where 10% of the population follows Justin Bieber and Lady Gaga on Twitter and where 50% think the National Debt is a monument in Washington D.C. The country is controlled by evil sycophants, intellectually dishonest toadies and blood sucking leeches. Their lies and deception have held sway for the last four years, but they have only delayed the final collapse of a boom brought about by credit expansion. They will not reverse course and believe their intellectual superiority will allow them to retain their control after the collapse.”

Stephen Roach Warns China's Policy Incoherence Has Become Evident

China was hardly lacking in policy pronouncements in the final months of 2013. From the 60-point reform program issued by the Central Committee’s Third Plenum in early November to the six core tasks endorsed by the Central Economic Work Conference a month later, China’s leaders proposed a raft of new measures to address the daunting challenges that their country faces in the years ahead. But, seen in their entirety, the risk of incoherence has become evident. Given the likely tradeoffs between strategy and tactics – that is, between long-term reforms and short-term growth imperatives – can Chinese policymakers really accomplish all of their objectives?

2013 Greatest Hits: Presenting The Most Popular Posts Of The Past Year

The fifth anniversary of Zero Hedge is just around the corner, and so, for the fifth year in a row we continue our tradition of summarizing what you, our readers, found to be the most relevant, exciting, and actionable news of the year, determined objectively by the number of page views. Those eager for a brief stroll down memory lane of prior years can do so at their leisure, by going back in time to our top articles of 2009, 2010, 2011 and 2012. For everyone else, without further ado, these are the articles that readers found to be the most popular posts of the past 365 days...

What Happens When The Giants Unwind?

The world has depended on Chinese and American stimulus for years, and, as Caixin's Andy Xie notes, one implication of their tightening is a slowing global economy in 2014.

Dancing With The Dimons

It's not all work, work, work for the 1% who are trickling down their wealth effect and saving the USA one internet IPO at a time. The following images of the Dimons suggest they find time for some fun in between market manipulation, in which guilt is neither admitted nor denied, and litigation...

Dow Surges To Best Year Since 1995 As Bonds & Bullion Slump

2013 is in the books... and quite a year it was...

  • Fed Balance Sheet +39%
  • Dow Transports' best year since 1997 +39%
  • Russell 2000's best year since 2003 +37%
  • S&P 500's best year since 1997 +29%
  • Dow Industrial's best year since 1995 +26%
  • USD, WTI Crude, and Treasury 5s30s curve Unchanged
  • 30Y Bonds' worst year since 2009 -13%
  • Gold's worst year since 1981 -28%

The last few days have seen VIX rising, stocks limp higher (with a mini melt-up into the close today on huge volume), bond yields higher, and the USD lower.

Caption Contest: Nutcracker On The NYSE

We are not exactly sure why the ballerinas of the Nutcracker can be found on the floor of the TV studio formerly known as the New York Stock Exchange (currently owned by the Atlanta-based ICE), but we are sure there is a good reason.

 

Bonds Close 2013 At 30-Month High Yields

The Treasury bond has now closed for 2013 with the (highest duration) 30Y Treasury Future down 13% for the year. Of course, those invested in fixed income are not all long the long-end but across the whole complex yields are at highs. 10Y ended at 3.03% - its highest since July 2011 and 30Y at 3.97% - its highest since August 2011. The short-end remains under control (though 15bps higher than its mid-November trough and double the May lows at 40bps) but the 7Y yield has surged back to 2013 highs also not seen since mid 2011. Perhaps most notable is that despite all these moves, 5s30s is unchanged on the year, while 2s10s is +120bps.

Previewing Tonight's Uber Surge Pricing Schedule

Since no matter what, there will be yet another outcry against Uber tonight, mostly by its most fervent customers and the same confused media outlets, the company has preempted the sound and the fury, and has preannounced just what times riders can expect to pay up to 6x (or more) their usual fare as they contemplate going from point A to point B across the various metropolitan centers in which it operates.

Russian Banks Buy 181.4 Tons Of Gold In 2013

With headlines crowing of gold's worst year since 1981 as a signal that the status quo is winning and proof positive that fiat-currency naysayers must be wrong, it would appear that the rest of the world's central banks (and banks) have used the price depreciation to stack the precious metal. As Bloomberg reports,

*RUSSIAN BANKS BOUGHT 181.4 TONS OF RUSSIAN GOLD IN 2013: RIA
*RUSSIAN BANKS BOUGHT ALMOST 90% OF RUSSIA 2013 GOLD OUTPUT: RIA

This 5.834 million ounce addition (8.3% YoY) is more than double that of Russia's central bank additions in 2013 with Bitcoin-favoring Sberbank piling up 48.5 tons alone in 2013.