Archive - Jan 2015

It’s important that we all, European or not, grasp how lacking in morality the entire system prevalent in the west, including the EU, has become. This shows in East Ukraine, where sheer propaganda has shaped opinions for at least a full year now. It’s not about what is real, it’s about what ‘leaders’ would like you to think and believe. And this same immorality has conquered Greece too; there may be no guns, but there are plenty victims. The EU is a disgrace, a predatory beast unleashed upon all corners of Europe that resist central control and, well, debt slavery really, if you live on the wrong side of the tracks. SYRIZA may be the last chance Europe has to right its wrongs, before fighting in the streets becomes an everyday reality.

Spy 1: You can ask about ETF. . . . E-T-F. E, exchange.
Spy 2: Yes, got it.
Spy 1: How they are used, the mechanisms of use for destabilization of the markets.
Spy 2: Aha.
Spy 1: Then you can ask them what they think about limiting the use of trading robots. . . .

"The only conference call you will ever need," according to Jim Cramer, is Caterpillar, it "is my gospel, my go-to call on which many of my decisions are based... I trust Caterpillar's long-term vision... it is a superb evaluator of what's happening in each of the countries it sells in and gives you the most thorough description of each economy." As Cramer concludes, "Caterpillar's the primer, the sopurce for your global outlook..."

"There is no alternative..." "Cleanest dirty shirt..." "Fed has to raise rates..." "Decoupled..." - Umm no! 2015 has started with the worst disappointment and weakness in US Macro data in at least a decade... but apart from that, BTFD!

Once one oligarchy falls, it will threaten to topple a long line of oligarch dominoes.

"Can Fed policy ever be local again?" asks Bloomberg's Richard Breslow ahead of this week's meeting, as there are plenty of things to focus on if you want to be worried about the world...

On this day in 1955, the police were called to the five story, Fifth Avenue, mansion of Serge Rubenstein. There they found the corpse of the controversial 46 year-old "Financier." He had been strangled with a curtain cord. Rubenstein embodied in one man everything that would later be called "the sins of the eighties." He was greedy. He was flashy. He was a raider. His operations were shrouded in mystery and covered by dummy companies. And he used the press to exaggerate his wealth, so that he could bump up his credit with gullible bankers. He had been the guest of presidents and potentates. And through it all most folks thought he was a real slime ball. In covering his murder, Time magazine felt he had so many enemies that, with only a little tongue in cheek, Time congratulated the New York City police on having "....narrowed the list of suspects down to 10,000." It never got narrower.

Alexis Tsipras has announced his new cabinet to lead Greece forward - with or without Europe. As was expected the economist Yanis Varoufakis was given the key position of Finance Minister, and another influential economist, Nikos Dragasakis was appointed Deputy Prime Minister...

A succinct description of modern civilization: a place where global connectivity has never been greater, but neither has warrantless surveillance.

"This is not blackmail," explains new Greek Finance Minister Yanis Varoufakis, "we simply want to end this seemingly never-ending Greek Crisis." In what must be worryingly calm and simple to comprehend words for Brussels, Varoufakis tells CNBC's Michelle Caruso-Cabrera, "this is what happens when you humilate a nation and don't give it any hope." Carefully noting that membership in the Euro is not imperative, Varoufakis concludes "bankruptcy cannot be dealt with by borrowing more," asking rhetorically, "how can I look the German and Finnish taxpayer in the eye and tell them you know I can't really pay you the money I have already borrowed from you..." but lend me more so I can pay back the ECB?

We are happy to report that the P&L drought may have finally ended, and we have none other than the man many have suggested could be next in line for the title of honorary "Tom Stolper" of the FX realm: BofA's technical strategist MacNeill Curry. Moments ago, Curry came out with a trade reco which is, not surprisingly, just in line with what the vast consensus, and not to mention the Bank of Japan, thinks: long USDJPY.

According to the doctrine of central planners, the idea of Q€ is to lower rates to encourage borrowing (and credit creation) to spark growth and kickstart a virtuous recovery. As the following chart shows, that is total and utter crap... French jobseekers just hit a fresh record high and French rates just hit a record low - and that has been the story for 6 years. So  - just as The Fed was finally forced to admit, Q€ is nothing more than wealth redistribution from all taxpayers to the ultra-rich asset owners who - it is hoped- will bless the plebeians with some trickle-down-ness... with every asset under the moon already at record highs, once again we ask - just what do you think this will achieve Draghi.

Greece will be first, followed by the rest of the PIIGS in Europe. Japan is also on the block as will be the UK and ultimately the US.