Archive - Mar 6, 2014

Gold Equities are on their way to a parabolic rise

On the heels of the Russian navy intentionally sinking a vessel blocking the Ukrainian navy from entering The Black Sea, Ukraine Pravda reports that it is "most probable that Russian troops will assault units in Ukrainian Crimea overnight continuing to the weekend." Citing a source in the uniformed services, Ukraine Pravda warns that "despite reports that Russian troops ended in learning, active phase lasts. They did not return to the barracks," and maintain "peak readiness."

The oligarchs have taken over the asylum:

• *UKRAINE $1 BLN LOAN-GUARANTEE BILL PASSED BY U.S. HOUSE
• *HOUSE VOTES 385-23 TO PASS $1 BLN UKRAINE LOAN GUARANTEE

We are sure the auditors will be aggressively checking that this money does not flow directly from the US to Ukraine to Gazprom. But notably, we suspect, Jordan and Tunisia might be pissed as they just lst their funding. Not so much for Detroit or Puerto Rico also...

5 years ago today, the S&P 500 made its post-crisis low at the oddly demonic 666 level. What many may not remember is... the last so-called-at-the-time "secular" bull market lasts exactly 5 years and 1 day (from October 10th 2002 to October 11th 2007)... it's different this time though.

The Fed’s basic beliefs and workings are clearly sacrosanct, no matter how many times they fail. And as long as that continues to be the case, expect current and future Fed Chairs to follow Bernanke’s lead and draw up a list of boom-bust blunders shortly after leaving office. The aggregate equity allocation for U.S. households is now at a level that’s only ever been reached in the Internet bubble years of 1998 to 2000. This will surely lift spirits at the next FOMC meeting. (Cue the laugh track.) Higher equity allocations are exactly what the Fed tries to achieve with its so-called portfolio balance channel – their jargon for driving up the prices of a few assets by enough that you push investors into other assets (risky assets, such as equity, in the present case). The Fed’s confessions haven’t gone far enough

Yesterday we reported that with the US aircraft carrier, CVN-77 George H.W. Bush, anchoring in Piraeus, Greece, an unnamed US warship had been granted permission by Turkey to cross the Bosphorus and enter the Black Sea. There was speculation it may be the carrier itself, even though such a crossing would be forbidden by the Montreaux Convention. Today we have the answer: it is not CVN-77, but one of the ships from its aircraft carrier strike group - the guided-missile destroyer USS Truxton, which as the clip below shows, just departed the Greek port of Souda Bay earlier today.

It would appear the Norwegian Nobel Institute is starting to lose it. Just a few years after President Obama won the Peace Prize (while mired in overseas wars), the director of the prestigious entity announced today that Russian President Vladimir Putin, accused of invading Ukraine - suspiciously un-peaceful action - has been nominated for the Peace Prize. Putin joins NSA whistleblower Edward Snowden and Pakistani schoolgirl Malala Yousafzai as a nominee for the award to be announced in October.

The pain we feel when balanced at the cliff’s edge is entirely of our own making and completely within our control to extinguish. All we need do is to abandon the certainty of belief that is presently stuck in our craw.

President Obama released his 2015 budget proposal this week...and as expected, it contained even more language about his MyRA initiative. As we’ve discussed so many times in the past, IRAs are an irresistible kitty for such a bankrupt government. The US government itself estimates that over $5 trillion is tucked away in American retirement accounts. They need that money. Your money. The US government is struggling to come up with new funding sources… and retirement accounts are by far the easiest target. Why? Because the majority of retirement accounts at trapped at big Wall Street banks, which are all de facto agents of the government. All the Treasury Department has to do is make a phone call. Yesterday’s budget announcement constitutes the next phase: automatic enrollment.

A Common Tactic to Discredit Opponents Or to Create Momentum for “Regime Change”

Another quarter down, and another $3 trillion in net worth added. On the surface, the increase in household net worth to a record $80.7 trillion is good news. The problem is that with $2.5 trillion of thie $3 trillion purely thanks to an increase in financial assets, which as has been made quite clear over the past several years, benefit only the 1%, what the lede should say is "another quarter down, another $3 trillion added to the net worth of America's richest." Put another way: of the $94.4 trillion in total assets (gross, not excluding $13.8 trillion in household liabilities), a record 71% or $66.9 trillion, is in financial products. And now you know why the Fed can not possibly allow any hiccups on the road to trickle down Fed balance sheet nirvana. If only for the 1%.

With Western condemnations rife, bailouts ready to flow, US F-16s on the ground in Poland, Crimea voting to join Russia, and allies pulling back from sanctions, we anxiously await President Obama to explain his next steps and just what will trigger them...

Newsweek claims to have identified the mysterious creator of Bitcoin. Satoshi Nakamoto - long believed to be a pseudonym - was hunted down through searches, conversations, and national archives: "It was only while scouring a database that contained the registration cards of naturalized U.S. citizens that a Satoshi Nakamoto turned up whose profile and background offered a potential match. But it was not until after ordering his records from the National Archives and conducting many more interviews that a cohesive picture began to take shape."  

Some remain skeptical that Newsweek have found him but making such a bold claim is aggressive and comments from Bitcoin lead developer Gavin Anderson suggest this is the real Satoshi.

Ukraine's Acting President Turchynov is not happy about what his 'fellow countrymen' in the east are doing:

• *UKRAINE PARLIAMENT TO DISSOLVE CRIMEA LEGISLATURE: TURCHYNOV
• *UKRAINE PRESIDENT SAYS ONLY NATIONAL CRIMEA VOTE IS LEGAL
• *UKRAINE'S TURCHYNOV SAYS MARCH 16 REFERENDUM WOULD BE 'FARCE'
• *TURCHYNOV CALLS MARCH 16 REFERENDUM 'CRIME AGAINST NATION'

So how will he enforce that decision? Perhaps this is the instigation that Putin has been waiting for? Bonds and precious metals are suddenly bid on this news.

The scoop that put NEWSPEAK back in physical...