Tyler Durden's picture

Sorry Janet: Technology Is Deflationary

We all know the Federal Reserve is terrified of deflation, because they keep telling us that deflation is the equivalent of death and inflation is the equivalent of oxygen. What they fail to mention is that inflation is only oxygen for debtors barely able to service their debt and those who profits from debt, i.e. bankers and financiers. For everyone earning a wage or salary, inflation is the equivalent of death by a thousand cuts and deflation is the elixir of life. When prices decline, our money goes further, i.e. our purchasing power increases. Only bankers, governments and other parasites that live off the carrion of debt fear deflation and try to destroy the purchasing power of wages with everything in their power.



Tyler Durden's picture

Have No Fear, Joe Biden Is Here (Or Rather, In Kiev)

John Kerry (and more secretly, John Brennan) came, saw, and failed miserably, and repeatedly, to "de-escalate" (or, re-escalate in the case of the CIA visit) the Ukraine situation. So the time has come to bring out the bug gun. Sure enough, heeeeere's Joe, as he arrived in Ukraine. And now sit back and watch as world peace breaks out in 5.... 4.... 3....



Tyler Durden's picture

APC Sporting Russian Flag Parades Around Separatist Occupied Slavyansk

While no business cards were left this time, a Russian-flag-toting APC has been spotted driving through the center of Slavyansk - the pro-Russian held city where several people were killed over the weekend. Of course, it is unclear whether this is yet another brazen attempt at provocation - proving the truce has been broken - as we can't help but notice how comfortable the military vehicle seemed to be posing for the cameras...



Tyler Durden's picture

What Do Janet Yellen, Uri Geller, And Jesus Have In Common?

Meanwhile, we are still puzzling over the miracle produced by the Fed. Uri Geller could bend spoons. The Fed bends the entire economy. Hardly a single price is unaffected. Hardly a single business plan or investment strategy goes forward without an eye on the central bank. Jesus turned water into wine and multiplied loaves and fishes. But the Fed make Him seem like a two-bit shell game hustler. The loaves and the fishes couldn’t have had a market value of more than a few thousand shekels! Every year, more resources must be drawn from the future and enjoyed in the present. Every year, the claims on future earnings increase… and every year the debt becomes even more unsupportable. Somehow. Someday. Those claims on the future will be marked down.



Tyler Durden's picture

Russia Warns It May Enter Recession As Soon As This Quarter

While hardly coming as a surprise to anyone, Russia is getting increasingly more vocal about the near certainty that the country is about to slam headfirst into a technical (at first), and then outright recession.

  • RUSSIA MAY ENTER `TECHNICAL RECESSION' IN 2Q, ORESHKIN SAYS
  • RUSSIAN 2014 CAPITAL OUTFLOWS MAY REACH $70B-$80B: ORESHKIN
  • RUSSIAN 2014 CURRENT-ACCOUNT SURPLUS MAY EXCEED $50B: ORESHKIN
  • RUSSIAN GDP MAY CONTRACT IN 2Q OR 3Q VS YR EARLIER: ORESHKIN


Tyler Durden's picture

Depositor In Failed Russian Bank Loses It, Takes Hostages, Demands $700,000 Ransom

Earlier today, the Central Bank of Russia announced that starting April 21, it would revoke the license of Moscow’s Bank Zapadny. According to reports, "the bank had cooked its books and failed to comply with regulations on the amount of assets a financial organization must maintain to ensure its stability, the central bank said." In other words, your typical FDIC Failure Friday only on Monday morning. Hardly notable. It is what happened next that was shocking. Shortly after the bank shutdown announcement, an armed man took three hostages at a Belgorod branch of precisely this failed Bank Zapadny. Tt appears this may simply be the latest case of a disgruntled bank client taking matters into his own hands.  As RT reports, "he may be a client of the bank wishing to withdraw his deposit despite the bank losing its license.....Life News tabloid says it has identified one of the attackers as 46-year-old Aleksandr Vdovin, a client who holds the bank’s promissory notes for a large sum, and who decided to reimburse them at gunpoint."



Tyler Durden's picture

Frontrunning: April 21

  • Putin playing the long game over Russian kin in Ukraine (Reuters)
  • U.S.-Russia Relations Come Full Circle After Ukraine (WSJ)
  • Japan PM makes offering to Yasukuni Shrine, angers China, South Korea (Reuters)
  • In Gold Miners' Talks, Scale Is Crucial: Combined Barrick-Newmont Would Be Able to Trim Costs (WSJ)
  • SEC Said to Weigh Shining Light on Brokers’ Stock Routing (BBG)... and protmply unweigh it
  • Exelon Beating Facebook in S&P 500 After Valuation Scare (BBG)
  • Court Case May Help Define 'Insider Trading' (WSJ)
  • Spanish banks face tough rivalry in small companies bet (Reuters)


Tyler Durden's picture

Sleepy Holiday Market Prepares For Scripted, Daily Low-Volume Levitation

It has been a largely event-free weekend except, of course, for the previously reported re-escalation in Ukraine following what was a lethal shooting in the east Ukraine city of Slavyansk blamed on Ukraine's Right Front, which has made a mockery, as expected, of the Geneva Ukraine de-escalation announcement from last Thursday. Overnight in Asia, Japan reported its largest ever trade deficit, providing yet more evidence that Abenomics has been an abysmal failure: all we are waiting for now is confirmation that basic Japanese wages have fallen yet again, which would make nearly 2 years in a row of declines. Still, the USDJPY, gamed as usual by HFT algos for which FX is now the last respite as the equity market crackdown gets louder, is doing its best to ramp from the overnight lows and ahead of the traditional US market open surge, as a result equity futures are modestly higher.



Tyler Durden's picture

This Means War: US To Target Putin's Personal $40 Billion Stash

While the White House has continually threatened further sanctions against Russia for non-de-escalation (even as it un-de-escalates itself), the specifics of the additional sanctions have been sparse. German CEO warnings over blowback from economic sanctions... the "nonsense" of replacing Russian gas with US gas... the Russian warnings of "interdependence" and "boomerangs"... all reduce the West's arsenal of financial sanctions. But, as The Times of London reports, perhaps the US has found a crucial pain point for Putin - a sanctions regime that would target Putin's personal wealth, which includes a reported $40 billion stashed in Swiss bank accounts.



Tyler Durden's picture

Martin Armstrong Asks "Do The Feds Really Own The Land In Nevada?"

"Is it true that nearly 80% of Nevada is still owned by the Federal Government who then pays no tax to the State of Nevada? This seems very strange if true as a backdrop to this entire Bundy affair." The truth behind Nevada is of course just a quagmire of politics. Sorry, but to all the commentators who call Bundy a tax-cheat and an outlaw, be careful of what you speak for the Supreme Court has made it clear in 1845 that the Constitution forbids the federal rangers to be out there to begin with for the Feds could not retain ownership of the territory and simultaneously grant state sovereignty. At the very minimum, it became state land – not federal.



Tyler Durden's picture

All You Need To Know About Russia, In Charts

A look below the propaganda surface in charts.



Tyler Durden's picture

JPY Drops, Nikkei Pops As Japanese Trade Balance Nears Record Deficit (36th In A Row)

UPDATE: Goldman folds on "J-Curve" - the pace of that improvement will be far more modest than in past periods of yen weakness.

Another month, another colossal miss for the "waiting-for-the-j-curve" Japanese trade balance. At 1.7tn, this month's adjusted trade balance is the 2nd largest on record, and is the 36th month in a row - the worst March deficit ever. Exports missed dramatically (+1.8% vs 6.5% expected) so, so much for devaluation driving competitiveness in a globally interdependent product development cycle - nearly the lowest YoY gain in exports since Abenomics began. Imports rose more than expected (+18.1% vs 16.2%) as the devalued JPY makes living standards more difficult to maintain. The result of this dismal data - JPY weakness which can mean only one thing - a 120 point rally in the Nikkei.



Tyler Durden's picture

Japan Expands Military Footprint For 1st Time In 40 Years Ahead Of Obama's Visit

Mere days before President Obama is due to visit on his Asia tour, Japan is making some rather uncomfortable 'diplomatic' moves. First, a senior Japanese cabinet official - Keiji Furuya - visited the highly controversial Yasukuni shrine (which is where "Class A" war criminals are enshrined alongside other war dead). And second, and perhaps even more concerning, is, as Reuters reports, Japan began its first military expansion at the western end of its island chain in more than 40 years on Saturday, breaking ground on a radar station on a tropical island off Taiwan. Both moves risk angering China at a time when non-Chinese Asia is looking for reassurance from Obama on his willingness to suport them.



Tyler Durden's picture

US Gas Will Never Replace Russian Gas For Europe

If Cheniere Energy's CEO calling the Obama plan to export LNG to Europe "nonsense" is not enough, the following will provide more than enough color to explain why, as Peak Prosperity's Chris Martenson pointedly remarks, recent entreaties by various US politicians to help wean Europe off of Russian gas are simply preposterous.  The numbers don't add up, and they never will.



Tyler Durden's picture

The "New" SATs (Summed Up In One Cartoon)

Presented with no snark or ironic comment whatsoever...



Do NOT follow this link or you will be banned from the site!