Archive - Sep 2013

September 28th

Tyler Durden's picture

How To Boost US GDP: Science Fiction Edition Redux





When back in February 2012 we first suggested (sarcastically) "A Modest Proposal To Boost US GDP By $852 Quadrillion: Build The Imperial Death Star" which as the title suggested, was a quick and easy way to boost US GDP by $852 quadrillion through 'building' the Imperial Death Star (on credit of course - remember: in modern finance, one's "growth" is only limited by how much debt they can issue), little did we know that this would promptly become a viral campaign which in early 2013 culminated with a White House petition to do just this thing. Unfortunately, since then things have devolved so much that science fiction is rapidly becoming the bedrock of both US fiscal and monetary policy. So as we continue to slide down the rabbit hole of insolvency, in a world of peak absurdity, it only makes sense to revisit some comparable, if smaller scale, ideas that may at least prevent another imminent middle east conflict false flag, seeking solely to boost the US economy. Presenting: space ships.

 

Tyler Durden's picture

Biggest Greek Crackdown In 39 Years: Leadership Of Far-Right Golden Dawn Party, Third Most Popular In Greece, Arrested





In what may be a highly destabilizing step, both political and socially, Greece announced this morning that in a shocking political crackdown, the biggest since the fall of the military junta in 1974, the Police had arrested the leader and more than a dozen senior members of the far-right Golden Dawn party after the killing of an anti-fascist rapper by a party supporter triggered outrage and protests across the country. Reuters reports that the party's leader Nikolaos Mihaloliakos, spokesman Ilias Kassidiaris, two other lawmakers and 10 members were arrested on charges of founding a criminal organisation. They are due to appear in court this weekend to be charged formally. Police confiscated two guns and a hunting rifle from the home of Mihaloliakos, saying he did not have a license for them. As has been reported previously, Golden Dawn, is under investigation for the murder of Pavlos Fissas, who bled to death after being stabbed twice by a party sympathiser.

 

 

Pivotfarm's picture

Qatar’s Slave Trade Death Toll





The Egyptians dispensed with the life of their slaves in the construction of the pyramids as if they were nothing but throw-away products before that had even been invented in the modern day and age in which we live.

 

September 27th

Tyler Durden's picture

How Marc Faber Prepares For "When The Shit Hits The Fan"





During a recent round-table discussion (accessible below), Marc Faber explained his asset allocation strategy and his incredulity at what the Fed is doing.

"I have around 25% in gold... and it's my insurance policy. It is important that one day when the so-called shit hits the fan - and I think the Fed is well on its way to creating that situation - you have access to your gold, that it is not taken away."

Faber goes on to discuss his lack of surprise at the Fed's un-Taper, the wealth in-equality impacts, and Asia's growing lack of faith in the USD.

 

Tyler Durden's picture

Guest Post: Don't Cry For Me, Ben Bernanke





Financial volatility since Federal Reserve Chairman Ben Bernanke’s announcement in May that the Fed would “taper” its monthly purchases of long-term assets has raised a global cry: “Please, Mr. Bernanke, consider conditions in our (non-US) economies when you determine when to end your quantitative-easing policy.” That is not going to happen. The Fed will decide on monetary policy for the United States based primarily on US conditions. Economic policymakers elsewhere should understand this and get ready.  All of this is just hard reality. The best way to prepare is to limit the use of credit in boom times, prevent individuals and companies from borrowing too much, and set high capital requirements for all banks and other financial institutions. The Fed surprised markets last week by deciding to maintain its quantitative-easing policy. But that underscores a larger point for non-US economies: You never know when the Fed will tighten. Get ready.

 

Tyler Durden's picture

CNBC Admits Economic Pessimism Surged To 2 Year Highs





You know it's getting troubling when everyone's favorite hopium-providing financial-advisor-pitchfest channel is unable to find a silver-lining upon which to place your BTHFATH 401(k) bets. Steve Liesman unveiled the CNBC All-American Economic Survey and it was not pretty. In a nutshell, optimism is plunging and pessimism is surging as 61% are downbeat on the current state of the economy and pessimistic for the economic future.

 

Tyler Durden's picture

6 Things To Ponder This Weekend (9/27/13)





Here are six things to ponder this weekend:

1. Inflation Debate Continues
2. The Obamacare Nightmare
3. The Disconnect Between "Main Street" and "Wall Street"
4. Payroll Number Become Even More Manipulated
5. Congress Living The High Life At The Taxpayers Expense
6. What If The "Fear Trade" Bubbles Up?

 

Tyler Durden's picture

Credit Markets Signal Bigger Fear Of Treasury Default Than In 2011





Earlier in the week we noted the spike in the cost of protecting against a technical default on US Treasuries. While well below "record" wides of 2011, a very interesting event has occurred. The cost of 1Y protection has surged higher than the 5Y protection - something we have only seen in the summer of 2011. However, this time it's different as the inversion is even greater than in 2011 - although not the most liquid instrument in the world - implying a greater chance (albeit a small probability) of a postponed payment in US Treasuries. As we noted previously, there is a way to trade this away from CDS-land.

 

Tyler Durden's picture

Mapping Iran's Nuclear New Normal





With President Obama now on closer talking terms with Iran's President Rouhani than the Republicans, we thought the "major geopolitical shift," that this is supposed to be should be offset with a glance at the 'known' nuclear facilities that Iran possesses as the White House proceeds along its "difficult" path to "resolution" - not not regime change...

 

Tyler Durden's picture

These Are The Ten "People" Who Run The World (For The Last 20 Years)





Everyone knows that politicians are merely muppets, controlled by financial and corporate interests, injected into an anachronistic legacy represenational system designed to give the person on the street some sense of nominal control over day-to-day events. And while bankers control the flow, production and cost of money, without some means of converting labor (someone else's) into capital (their own), all the money in the world would be for nothing (and the myth that debt is wealth would be extinguished). Which leaves one true controlling agent: Corporations, or as they are better known by the Supreme Court: "people." Which is why, for all those curious who really calls the shots, below we list the top 10 corporations by market cap over the past 20 years. While the landscape has changed at the very top, the premise has not. Looking to find who has been truly in control over the past two decades? Look no further.

 

Tyler Durden's picture

On This Day In History, Oil Prices Have Never Been Higher





The recent drop in WTI crude oil prices has brought out the ubiquitous "well, that's a tax cut for the US consumer" recency-biased talking-heads always looking for a silver-lining to justify something. What they fail to notice, is at $103.57, this is the highest price WTI crude oil has ever been at the end of September. The reason timing is important is the annual cycle of oil prices means comparing Summer with Winter and so on is misleading. So is the highest price ever for oil in the Fall still a positive for the economy?

 

Tyler Durden's picture

T-Minus 4 Days Till Government Shutdown: The Latest Summary





With government shutdown day (now in 3-D IMAX) just four days away, some are unsure what the latest developments are in the fluid and rapidly shifting landscape of Capitol Hill. For their benefit, here is a pithy but comprehensive summary of where we stand currently.

 

Tyler Durden's picture

Weekly Bull/Bear Recap: Sept 23-27th 2013





This objective report concisely summarizes important macro events over the past week. It is not geared to push an agenda. Impartiality is necessary to avoid costly psychological traps, which all investors are prone to, such as confirmation, conservatism, and endowment biases.

 
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