Archive - Mar 29, 2015

As expected, the GOP is about to have a field day thanks to Hillary herself, whose actions have made her an easy comp to none other than than the most disgraced US president in recent history, Richard Nixon himself. From the Hill: Republican National Committee Chairman Reince Priebus blasted Hillary Clinton on Saturday for wiping her server and permanently deleting all emails.  "Even Nixon didn't destroy the tapes," Priebus said in a statement.

Despite all the talk of a "positive climate" Greek talks with their creditors have ended badly for the desperately cash-strapped nation. As WSJ reports, Greek proposals for a revised bailout program don’t have enough detail - are "piecemeal and vague" - to satisfy the government’s international creditors, eurozone officials said. Furthermore, as Dow Jones reports, EU finance ministers are unlikley to meet again until mid-April (and in the meantime, Greece has to pay salaries, pensions, and most critically IMF debts due on April 9th). It appears clear that the EU is prepared to let Greece entirely run out of money in an effort to squeeze Tspiras as much as possible (though that action will likely further force a pivot to Putin).

Just a week after Jean-Claude 'I am not a hawkish warmonger' Juncker pressed for the creation of a Unified European Army to combat the 'looming' threat of their massive trade partner Russia; RT reports Arab leaders have agreed to form a joint military force from roughly 40,000 elite troops and backed by warplanes, warships and light armor at a Sharm el-Sheikh summit. Egyptian President Abdel Sisi has announced a high-level panel will work out the structure and mechanism of the future force. The work is expected to take four months. It appears The Endgame of this global game of Risk is fast approaching as one-by-one, geographically proximate nations join forces for whetever comes next.

When we left you yesterday, we were trying to connect the bloated, cankerous ankles of the US economy (Part 1) to the sugar rush of its post-1971 credit-based money system (Part 2). Today, we look at the face of our government. It is older... with more worry lines and wrinkles. But whence cometh that pale and stupid look? That is also the result of the same advanced diabetic epizootic that has infected American society.

- “Bubbles in credit” has jumped as the biggest concern (30%), having been third on the list in January’s survey,
- “Supply” has risen to be the second biggest concern (19%),
- “Geopolitical conflict” is the third biggest concern (14%), but this is down from being the top concern in January’s survey,
- "Deflation in Europe" (the second biggest concern two months ago), is now down in 7th place (just 3%).

A look ahead at the major drivers in the days ahead.  

No wonder complacency reigns supreme: any time the stock market tumbles by more than 3%, a Federal Reserve flack runs to a microphone and starts talking about how the Fed stands ready to launch QE4 or "whatever it takes" to push stocks back into rally mode.   For context, recall that both VIX and VXX tend to reach 40 in real moments of panic/fear. That the VXX "soaring" 2 points from 24 to 26 now qualifies as an extreme of fear is absurd. Yet this is the logical result of central banks constantly "saving" equities every time they swoon the slightest bit: traders and punters know that the Fed making reassuring sounds is all that's needed to reverse any decline and restart the Bull advance.

Another myth explained...

Do our childish minds really think those whom we blindly empower will scurry away like cockroaches exposed by the refrigerator light and leave us be after the fall? Really? Are we serious?

How will the central planners contain this MONSTER?!

Unless We Learn Our History, We're Doomed to Repeat It