According to Reuters, the US deficit panel's recommendation to cut the budget fails to win 14 votes of support from the teleprompter's commission. This means no deficit vote will go to congress. And so the bullshit continues: America will never adopt austerity until the revolt or the Fed's overthrow arrives.
Bart Chilton Urges Corrupt CFTC Colleagues To Actually Act On Behalf Of Investor Protection For Once, Move On Position LimitsSubmitted by Tyler Durden on 12/03/2010 - 11:38
Even as the CFTC is doing its best to postpone indefinitely (and hopefully infinitely) a review of limit speculative positions held by commodity traders (read JPM), commissioner Bart Chilton, who really should shut up if he knows what is good for him, told the CFTC to instead act quickly and actually do something right for investor protection for once (not necessarily in those words). From Reuters: "The regulator, which has a mid-January deadline, has been pushing back
the date to propose new speculative limits in energy and metals markets,
and so far has not given a time for when it will be introduced. This proposal should be discussed on December 9th at the commission's
next meeting; a proposal should be put out for public comment as soon as
possible; and we should commit to meeting the statutory deadline," said
Bart Chilton, a CFTC commissioner. "We can always find excuses, justifications, or pretexts for inaction --
this rule is too important to let any of those get in the way of
fulfilling our statutory responsibilities, and keeping our promise." The problem is that none of "those" are standing in the way of fulfilling statutory responsibilities: there are only two things that are standing in the way, and they are called Jamie Dimon and Blythe Masters.
Last week's advance durable goods report, which everyone promptly forgot about because it showed, gasp, bad data, just got even worse. Today, the final revision of the durable goods number was released, showing an even greater drop in durable goods orders. To wit: instead of a -3.3% decline, the final number in durable goods ended up being -3.4%: "New orders for manufactured durable goods in October, down two of the last three months, decreased $6.9 billion or 3.4 percent to $195.7 billion, revised from the previously published 3.3 percent decrease. This followed a 4.9 percent September increase." And as expected the artificial inventory led "bounce" refuses to relent: "Inventories of manufactured durable goods in October, up ten consecutive months, increased $1.5 billion or 0.5 percent to $316.9 billion, revised from the previously published 0.4 percent increase. This followed a 0.7 percent September increase." In other words: fake recovery, based on increasingly more fake numbers, relying on hoarding of unsellable products (just as GM has been doing lately).
ISM Servies prings at 55.0 compared to expectations of 54.8, now that all difusion indices trade like S&P earnings esmates. Key indices come in as follows as farce of a market goes green.
- New Orders: 57.7 vs. Prev. 56.7
- Employment: 52.7 vs. Prev. 50.9
- Prices: vs. Prev. 68.3
More shortly. And yes, who needs jobs in this country when you have outsourced all your economic data collection to China.
Have you ever heard of Section 747? No, it’s not where the government is hiding the aliens. And it’s not the secret area where The Bernank prints all the money. Section 747 is a small paragraph buried deep in the 3000 page monstrosity known as the Dodd-Frank Act. And Section 747 is causing a lot of folks in the HFT world to be very concerned.
It was only two days ago that Goldman upgraded its own bonus pool by saying the economy is now going nowhere but up, up, up. That lasted for 72 hours. Below is Hatzius' (first of many) mea culpa for finaly selling out: "A clearly disappointing report all around, with payrolls up much less than expected and the unemployment rate up. Although hours worked rose only 0.1% in November, this rough proxy for real GDP less productivity changes is tracking at roughly a 2½% annual rate. Flat wages coupled with the small increase in payrolls suggests very little wage and salary growth in November." We give the Goldman "strategist" 3 months before he starts beating the QE 3-666 drums again.
Economy Needs To Create 235K Jobs A Month To Return To Pre-Depression Levels By End Of Obama Second TermSubmitted by Tyler Durden on 12/03/2010 - 10:18
When we last ran this number, the economy needed to create 232,400 jobs per month to get to the same unemployment rate as last seen in December 2007, just before the depression started, courtesy of today's massive disappointment we can now increase the creation requirement to 235,120. As a reminder this is the number of jobs per month that need to be created between December 2010 and November 2016, or the end of Obama's now improbable second term, for jobs to recover their losses when taking into account the natural growth of the labor force of 90,000 people per month. Also, when ignoring the demographic shift, or just accounting for the absolute number in jobs without accounting for the labor force growth which is so wrong only the BLS looks at that number, the breakeven has been pushed back from June 2013 to July 2013. Economic collapse you can finally believe in. And now, with the BLS' good graces, the government can promptly pass the jobless benefits extension, which is what this whole doctored data charade is all about.
Private payrolls +50K on expectations of +160K! Manufacturing payrolls plunge 13K on expectations of +5K. Previous revised down to -7K. As Zero Hedge expected the ADP was totally and completely off. And so the myth of the recovery can suck it.
Live Chat With Julian Assange Crashes Guardian Website, As Assange Prepares To Be Arrested ImminentlySubmitted by Tyler Durden on 12/03/2010 - 09:11
The Guardian, which earlier was conducting a live chat with Julian Assange from an undisclosed location, has generated such massive traffic that the entire Guardian website was down at last check. We expect the Guardian will find some (Swedish) replacement servers, at which point we suggest readers join in the chat which can be accessed at the following link. This is likely the last live interview with Assange before he is arrested any minute now.
Jean Claude Trichet has finally learned the Bernank's lesson #1 on Central Bankering: when all else fails, buy it all. The FT reports that according to traders the ECB was on Thursday buying Portuguese and Irish bonds in €100m tranches – four times bigger than previously, which in turn sharply brought down the cost of borrowing for Lisbon and Dublin and sparked a euro rally. Just like in the US, this means that virtually no assets reflect their true value, as the ECB is now monetizing debt, without even having formally announced it is doing so, either in a sterilized or unsterilized fashion. This means that next week's update of the ECB SNP programme will demonstrate a surge in bond buying. This is especially the case when factoring in that Trichet is currently out in the market waving every Portuguese Bond in. It is a sad day that the only way the ECB, just like the Fed, can create an upward move in an asset class only by forcing a short squeeze.
- China calls for tighter monetary policy in 2011 as Beijing fights inflation.
- Euro steady at $1.3209 in morning European trading.
- Oil floats near $88 a barrel in Asia as economic indicators encourage hopes for stronger demand.
- Retail sales in eurozone rose 0.5% in October.
- Spain to approve measures to calm markets over bailout; may raise tobacco tax.
- Trichet pressures governments to fix the debt crisis as he buys them time to ax budget deficits.
RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 03/12/10
As if it wasn't enough that America's ruling oligarchs were sufficiently happy with abdicating their governing duties to the Federal Reserve, they have now decided to imitate China in every possible way, and in addition to making up economic data as they go (for actual numbers just look around you, for all the other imaginary bullshit there's the BLS), they have now proceeded to wipe their ass with the first amendment, on their way to converting the US to a complete banana republic. After Joe Lieberman made a mockery of Internet freedom of speech (and of Amazon's independence) he has now decided to step up his campaign against un-coopted journalists everywhere, precisely as we suspected would happen next in the USSA. Per MSNBC, the Independent Connecticut senator has told Tableau, a Seattle company that allows Web users to post charts, to remove several charts describing the release of WikiLeaks material. The company removed the charts on Thursday, following the lead of Amazon, which had taken down the WikiLeaks documents themselves. The punchline: none of the charts contained any classified data: "The charts were not produced by WikiLeaks, but by a freelance journalist. And they contained no classified or secret material. The charts merely depicted how many times each country, or topic, was discussed in the cables." In other words, as Bill Dedman concludes: "these charts were journalism."