September 27th, 2014
No, this is not Ferguson: it is, according to many, the world's most capitalist city, Hong Kong, where over the past few hours, around 50,000 students are said to have massed on late Saturday, demanding more democracy, as tensions grew over Beijing's decision to rule out free elections in the former British colony.
Not Even a Dead-Cat Bounce: Russia Sanctions, Whiff of Reality Sink ‘Economic Expectations’ in GermanySubmitted by testosteronepit on 09/27/2014 12:08 -0400
And German consumers were supposed to save the Eurozone – along with the global economy.
And no, it certainly can not be characterized as doing God's work............................
Most of the really big returns made by investors and entrepreneurs come from companies which seem to have one unmistakable element.
There may be one great conspiracy dictating the course of the capital market, but if there is not, what is the near-term outlook for the dollar?
When one thinks of Japan and natural disaster, the things that usually come to mind are earthquakes, tsunamis, radioactive lizards, the occasional massive nuclear power plant explosion. Not volcanoes - those are usually delegated to the sole country that dared to give bankers the middle finger, Iceland. And yet, overnight Japan declared a level 3 alert (on a scale of 1 to 5) when a volcano in central Japan erupted, sending ash clouds down the mountain’s slope for more than 3 kilometers. According to RT, at least one person has died and 70 were injured, while aircraft have been forced to divert to avoid the dangerous area. Medics confirmed the death of at least one person, while 70 more were reported to be injured, NHK reported. Thirty of the injured have been sent to hospital in critical condition, health officials added. One can only hope there were no nuclear power plants in the immediate vicinity of the volcano.
With Janet Yellen set to remove the 'wealth-creating' nutrients of QE within a month, it appears there is only way left to The American Dream... latch on to a billionaire (or their son or daughter). As a patriotic courtesy to our readers we provide the dummies guide to befriending a wealthy benefactor... everything from their marital status and demographic to the most critical factor for success - where to hang out in 2015 to catch their eye.
Gold bullion in Singapore climbed $9.29 to $1230.29 and gold was on track for a gain of almost 0.8% for the week prior to concentrated and continual selling in London and then on the COMEX pushed gold lower. Trading action had all the hallmarks of the Gold Anti Trust Action Committee's (GATA) 'gold cartel' and their determination to keep gold prices capped and "animal spirits" low in the gold market.
You were born free … a bundle of tremendous potential...
I don't want to spoil the revelations of "This American Life": It's far better to hear the actual sounds on the radio, as so much of the meaning of the piece is in the tones of the voices -- and, especially, in the breathtaking wussiness of the people at the Fed charged with regulating Goldman Sachs. But once you have listened to it -- as when you were faced with the newly unignorable truth of what actually happened to that NFL running back's fiancee in that elevator -- consider the following:
- You sort of knew that the regulators were more or less controlled by the banks. Now you know.
- The only reason you know is that one woman, Carmen Segarra, has been brave enough to fight the system. She has paid a great price to inform us all of the obvious. She has lost her job, undermined her career, and will no doubt also endure a lifetime of lawsuits and slander.
So what are you going to do about it? At this moment the Fed is probably telling itself that, like the financial crisis, this, too, will blow over. It shouldn't.
A man who had been fired from a food processing plant in an Oklahoma City suburb beheaded a woman with a knife and was attacking another worker when he was shot and wounded by a company official, police said Friday. As AP reports, while questioning the suspect's co-workers, investigators learned he had recently started trying to convert several employees to Islam. As the director of news and information for the Islamic Society of Greater Oklahoma City stated, "they have this ISIS thing on their minds and now this guy has brought it to America."
For the longest time anyone suggesting that Europe's economic collapse was nothing short of a deflationary collapse (which would only be remedied with the kind of a money paradopping response that Japan is currently experiment with and where, for example, prices of TVs are rising at a 10% clip courtesy of the BOJ before prices rise even more) aka a "Japan 2.0" event, was widely mocked by the very serious economist establishment, and every uptick in the EuroSTOXX was heralded by the drama majors posing as financial analysts as the incontrovertible sign the European recovery has finally arrived. Well, they were wrong, and Europe is now facing if not already deep in a triple-dip recession. Which also explains why now it is up to the ECB to do all those failed things that the BOJ did before the Fed convinced it it needs to do even more of those things that failed the first time around, just so the super rich can get even richer in the shortest time possible. So we were a little surprised when none other than Goldman Sachs today diverged with the ranks of the very serious economists and the drama major pundits, and declared that "recent trends in some European economies already qualify as a Japanese-style stagnation."
To claim that this is the market at work makes no sense anymore. Today central banks, for all intents and purposes, are the market. Our overall impression is that the Fed has given up on the US economy, in the sense that it realizes – and mind you, this may go back quite a while - that without constant and ongoing life-support, the economy is down for the count. And eternal life-support is not an option, even Keynesian economists understand that. Add to this that the "real" economy was never a Fed priority in the first place, but a side-issue, and it becomes easier to understand why Yellen et al choose to do what they do, and when. When the full taper is finalized next month, and without rate rises and a higher dollar, the real US economy would start shining through, and what’s more important - for the Fed, Washington and Wall Street - the big banks would start 'suffering' again.
Having earlier warned that the Ebola epidemic could kill "hundreds of thousands" and is a "priority for US," President Obama's concerns about "slowing economic growth in Africa," are perhaps the most telling statement of the Nobel Peace Prize winners comments this morning. However, as Bloomberg Businessweek's Brendan Greeley explains in this brief clip, US government bureaucracy stymied efforts to develop and test ZMapp - the potential Ebola treatment.
Self-evidently, all the major economies are saturated with debt. Accordingly, central bank balance sheet expansion has lost its Keynesian magic entirely. Now the great sea of freshly minted liquidity simply fuels the carry trades as gamblers everywhere load up with any asset that generates a yield or short-run capital gain, and fund these bloated positions with cheap options and repo style finance. But here’s the obvious thing. Central banks can’t normalize interest rates - that is, allow the money markets to rise off the zero-bound - without triggering a violent unwind of the carry trades on which today’s massive asset inflation is built. On the other hand, they can no longer stimulate GDP growth, either, because the credit expansion channel to the main street economy of households and business is blocked by the reality of peak debt. Yes, the era of Keynesian money printing is over and done. But don’t wait for the small lady at the Fed to sing, either.