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Gold And China's Challenge To The "Narrative Of Central Bank Omnipotence"

Gold has meaning to China in the same way that gold has meaning (or should have meaning) to Western investors. Not as an inherent store of value or some timeless monetary standard... but as a symbol of failed confidence in Western central bank control over market outcomes. To both investors and China, gold is an insurance policy against Western central bankers losing control of their massive monetary policy experiment. The difference is that China has the power to do something about it.



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America - Before & After (In 1 Cartoon)

Safer, more secure, more stable? Change it did.



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Reality-Optional Economics: Cockamamie Stories Infecting the Body Politic

The total tonnage of economic malarkey being shoveled over the American public these days would make the late Dr. Joseph Goebbels (Nazi Minister of “Public Enlightenment and Propaganda”) turn green in his grave with envy. It’s a staggering phenomenon because little about it is conspiratorial; rather, it’s the consensual expression of a public that wants desperately to believe things that are untrue, and an economic leadership equally credulous, unmanned, and avid to furnish the necessary narratives that might preserve their jobs and perqs.



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President Obama To Dictate How He'll Fix The Immigration Scandal - Live Feed

Having explained how well the economy is going - best in the world, apparently - President Obama is moving on to the immigration scandal. In an unexpected address from his fund-raising trip to Texas (Dallas actually - 100s of miles from the border), and on the heels of his 'executive action' demands on immigration reform, Obama will explain how it's none of his fault and unless 'the other side' give him carte blanche, it's a humanitarian crisis... think of the children (and the taxpayer funding)...



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Pentagon Admits Spending Millions To Study Social Media Manipulation

Just days after a report published by researchers at Facebook revealed that users of the social media site had been manipulated for science, The Guardian reports that DARPA - the Pentagon-run Defense Advanced Research Projects Agency - has in one way or another funded several studies recently that set out to explore that social networking site, as well as users of Twitter, Pinterest, Kickstarter and others. DARPA told the Guardian that the studies it has funded are essential to US defense interests.



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Why Killing The Ex-Im Bank Is Crucial To The Future Of Capitalism

The overpowering and incessant statist economic management of the American economy, as reflected in the Ex-Im extension mobilization now underway, is causing the engines of capitalist prosperity to shutdown. The main culprit, of course, is our monetary central planners in the Eccles Building. But they are only the leading edge - the exemplar that tells Washington day in and day out that without constant ministrations by agencies of the state, our capitalist economy would continuously under-preform and tumble into the ditch. So what is at stake in the Ex-Im battle is the future of market capitalism itself. If Washington lacks the capacity to say no to the shareholders of a few big US corporations that can be counted on one hand, then the statist predicate will triumph finally and for ever more.



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Germany Blesses "Bail-In" Deposit Confiscation Plan For Failing EU Banks

One year earlier than required, the German government approved plans to force creditors into propping up struggling banks across Europe. As WSJ reports, Germany "leads the way" in Europe by implementing European rules quickly and "creates instruments that allow the winding-down of big systemically relevant institutions without putting the financial stability at risk." What this means is that taxpayers (theoretically) will not be on the hook (though in reality we are sure the mutually assured destruction defense will be played - especially if Deutsche runs into problems) but as German authorities explain, "This ensures that in times of crisis mainly owners and creditors will contribute to solving the crisis, and not taxpayers." As a gentle reminder - creditors includes depositors... remember Cyprus?



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Caption Contest: "Do I Look Like I'm Happy To See You" Edition

"Smile, we're on camera..."



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Fact Or Fiction: Environmental Study Finds Air In Chicago Now 75% Bullets

Highlighting increasingly dangerous conditions within the city, a new study published Monday by Northwestern University’s Department of Environmental Studies revealed that approximately 75 percent of the air in Chicago is now composed of bullets.



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Full List Of Companies "Audited" By CYNK's Public Auditor

While we enjoyed the hours of amusement formerly micro-cap company Cynk Technology (CYNK, with Mr. Marlon L. Sanchez serving as President, CEO, CFO, Secretary, Treasurer & CAO) provided us today, we must sadly conclude that the company is nothing but a fraud. And it is nothing short of a testament to just how broken this excuse for a market is that a company with no assets, no revenues, no website, and one employee can go from zero value to nearly $5 billion in market cap in a few days , adding 150%, or over $2 billion in market cap today alone. That said, the question always is: who is next. Who is the company that is as big a fraud as CYNK and will generate as great a profit in as short a time. For the easiest possible answer we simply found out who the company's "auditor" is (that would be Messineo & Co, CPA LLC of located at the following address) and then we backed into which other companies also use this auditor for their own fraudulent purposes. The full list is below.



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Gold Near 4-Month Highs As FOMC Warning Sparks Buying Scramble In Stocks

Stocks trod water for most of the day until the Fed said they would take the punhbowl away and that markets were complacent and that triggered buying in stocks, bonds, and gold. VIX was the catalyst (just as we saw at the actual FOMC meeting) and we would not be shocked to see a major volume dump after-hours in VXX (as dark pools unload their manipulations). The Dow ripped higher, desperate to reach 17,000 and prove that 'wealth' was back - but failed (although it did manage to get back to unch from the payrolls). Treasury yields limped higher, spiked higher on FOMC then dumped to the low yields of the day by the close (0-1bps lower on the day). Precious metals leaked lower into FOMC but spiked notably after with gold closing near 4-month highs. Oil was sliding into the minutes and did not bounce to close at its lowest in 2 months. VIX did its best to remind everyone that when the FOMC speaks, it's always good market news.



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WTF Chart Of The Day: "Wealth Effect" Edition

Forget irrational exuberance; ignore exorbitant privilege; dismiss the idea that The Fed's actions are for Main Street not Wall Street... the following image says everything you need to know about "the recovery"...



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What Has Driven The VIX Higher In The Past?

A nervous peace prevails in the financial markets as central banks sit on their throne, fingers at the ready on the liquidity switch. As UBS' Bhanu Baweja notes, most volatility buyers have been 'rolled' into their graves. As they have explicitly targeted risk premia in addition to rates, a lot more hangs on the monarchs of monetary policy today than it has in previous cycles. While growth and inflation are both low, they are not necessarily uncertain; and although every crisis is different, certain patterns tend to repeat and certain events have reliably driven volatility higher.



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The Difference Between Bubbles And Panic: Mario Draghi Explains

Bubbles and panic happen. A bubble is a situation where markets ignore fundamentals, even if debtors are unsound. For too long, markets failed to raise funding costs for countries with unsustainable policies. And a panic is a situation where markets also ignore fundamentals, but this time to the detriment of sound debtors.



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Gold Spikes, Bonds & Stocks Surge Despite Fed Warning Over Complacency

As usual the initial knee-jerk reaction (in this case lower in stock prices and higher in bond yields) has been faded rapidly and despite Fed warnings over investor complacency (and real economic uncertainty not being priced in), investors are buying bonds and stocks with both hands and feet (for now)... Gold is spiking higher as the USD drops.



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