May 3rd, 2016
Revolutions, of course, can take many forms. There are social revolutions, political revolutions... and even financial revolutions. Now that interest rates are negative in many parts of the world, the financial system has become an incredibly destructive force. Negative rates adversely impact the livelihoods of just about everyone, from the average guy on the street all the way to the banks themselves... and a few key players have reached their breaking points and are starting to engage in acts of defiance.
Last week we had a bearish EIA Report and Oil moved up $3 bucks due to Fund Flows getting ahead of the fundamentals.
It can only get better from here... right?
The ECB is effectively out of viable options. The global banking crisis is back.
From our friends at Fasanara Capital we get their latest contrarian - and very bearish - Investment Outlook, which can be summarized as follows: "Reflation Phase To Be Temporary, More Downside Ahead", and which also contains four key conviction trade ideas over the next 12 months. "The narrative of reflation is today dominant and can continue to propel markets for a while longer. But as we know the narrative changes fast, and when it does we can expect a quick re-pricing. As we re-assess the validity of the underlying risks, we expect a shift in narrative in the few months ahead and a sizeable sell-off."
Update: *PAUL RYAN SAYS TRUMP WILL BE NOMINEE IF HE WINS INDIANA: CNBC
Today's primary in the Hoosier State could prove to be the last stand for Ted Cruz and John Kasich, as The Donald looks to deliver the final knockout blow to the two challengers. If Trump wins, it certainly would be an embarrassment for a GOP establishment that has literally done everything it can to stop Trump, most recently touting the Cruz/Kasich alliance that self-destructed just hours after it was announced.
"Most people in the bulk of the job market are not involved in super-high-value jobs. They are doing routine work and tasks and it's precisely these tasks that computers are going to be better at doing..."
German Coverup Scandal: Ministry Urged Erasing "Rape" From "Monstrous" Cologne Migrant Attack ReportSubmitted by Tyler Durden on 05/03/2016 15:17 -0400
A high-ranking police officer has alleged that his seniors tried to strike the word rape from an internal police report after the mass sexual assaults in Cologne over New Year. A chief superintendent in the Cologne police told the investigative committee established in the wake of the attacks that the interior ministry in North Rhine-Westphalia had sought to influence the investigations.
"The marginal economic benefits of the agreement are outweighed by the political consequences of its adoption".
For some time, the rich countries have argued that it is in everyone’s collective interest to demonetize gold. But there is a good case to be made that a shift in emerging markets toward accumulating gold would help the international financial system function more smoothly and benefit everyone.
While in the US and the rest of the free world, anyone who holds a less than bullish view of things is simply marginalized as a conspiracy theorist, ridiculed by establishment economists and pundits, is the recipient of mainstream media hit pieces, or denigrated by the president as "peddling fiction", China has decided to take a more blunt approach: "securities regulators, media censors and other government officials have issued verbal warnings to commentators whose public remarks on the economy are out of step with the government’s upbeat statements."
Tensions were already high as Turkish president Erdogan has been accusing HDP of ties to the outlawed Kurdistan Workers' Party (PKK), and the fight started as the two sides debated a constitutional amendment that would strip lawmakers of their legal immunity...
"There are today, we know, a hundred neighborhoods in France that present potential similarities with what's happened in Molenbeek." - Patrick Kanner, Minister for Urban Areas.
For the moment, silver’s intermediate-term bull market remains in force, albeit with a record level of bearishness on the part of the “smart money”.