Obama's Anti-Russia Policy Escalates: DoD Tells Congress Nukes Are Still On The Table

The US is playing a dangerous game of nuclear brinkmanship. Robert Scher, undersecretary of defense, has even floated the idea of a nuclear first strike against Russia. Claiming that Russia has violated the INF Treaty by testing a banned ground-launched cruise missile, Scher laid out possible options in testimony before Congress...

China Mocks G7 As "Gathering Of Debtors", Warns "Confrontation Will Be A Disaster For Europe"

"Since the very beginning of the establishment of the G7, it has been a rich-man's club that consists of Western major powers and aims to maintain the collective hegemony of the US-led West. Whether the G7 will become a geopolitical tool or a Cold War relic largely depends on European countries. Unlike the US, Europe shares a closer geopolitical and economic links with Russia. If the G7 becomes a platform for the confrontation between the West and Russia, it will undoubtedly be a disaster for Europe."

Consumers Are Not Following Orders

Last week the government reported personal income and spending for April. After months of blaming non-existent consumer spending on cold weather, shockingly occurring during the Winter, the captured mainstream media pundits, Ivy League educated Wall Street economist lackeys, and Keynesian loving money printers at the Fed have run out of propaganda to explain why Americans are not spending money they don’t have. The corporate mainstream media is now visibly angry with the American people for not doing what the Ivy League propagated Keynesian academic models say they should be doing. An economy built upon the consumption of iGadgets, Cheetos, meat lovers stuffed crust pizza, and slave labor produced Chinese baubles, along with the production of enough arms to blow up the world ten times over, and the doling out of trillions to the non-productive class, is doomed to fail.

China Dumps Record $120 Billion In US Treasurys In Two Month Via Belgium

After a record $92.5 billion drop in March, "Belgium" sold another $24 billion in April, bringing the total liquidation to a whopping $116.4 billion for the months of March and April. This means that after adding mainland China's token increase of $2 billion in April after a $37 billion increase the month before, net of Belgium's liquidation China has sold a record $77 billion in Treasurys in the most recent two months.

Investors Ditch Cash Market For Futures As Treasury Liquidity Evaporates

In what amounts to still more evidence that investors are moving into derivatives in order to avoid illiquid cash markets, UBS finds that over the "past three months, daily average futures volume stands at nearly 70% of cash Treasuries, based on the notional amounts transacted... up from about 50% in 2011."

What Comes Next, Part 2: The Looming Transformation

The serial bubbles of the 2000’s are nothing more than what was wrought of the 1920’s, in general. The monetary character of both is not coincidence, as the failures that bookend each of these ages induces the transformation: from monetary to fiscal and back to monetary again. That looks like progress and accountability, but in each it only leads to more extreme measures (relative to the last) to still achieve what Robert Owen and Karl Marx conceived more than a century and a half ago. That leads us to 2015 and what is certainly the ragged end of the eurodollar standard. The third socialist age was undone by August 2007, but that did not stop its proprietors of “eurodollar socialism” under the name “investor capitalism” from trying to rebuild and restore it to full capacity. The groundwork has already been laid, and it is exactly what you would expect given the history since 1907. There are no widespread details about a return to capitalism and sound money practices, only how to overcome the third installation of that timeless barrier thrown down in the collapse of each of the asset bubbles so far – value.

Deutsche Bank Exodus Continues As Real Estate Chief Leaves For Blackstone

On the heels of resignations from co-CEOs Anshu Jain and Jürgen Fitschen, Deutsche Bank loses another high profile employee as the bank's global head of commercial real estate departs for Blackstone. Jonathan Pollack's departure comes just one month after the bank's head of structured finance Elad Shraga left to start his own fund and seems to lend credence to the idea that Deutsche Bank may be in trouble.  

Saxobank CIO: Credit Cycle Has Peaked, Gold Will Be Best-Performing Commodity

"Forget the 1930s; inflation is different this time," says Saxobank's Steen Jakobsen, warning that while there may be a summer of growth in Europe, hell will come afterwards, "European 'cost advantage' is disappearing fast and furiously – enjoy the summer of growth – afterwards, you can expect: zero growth, zero reform and higher inflation 'expectations'... The credit cycle has peaked... and Gold will be the best performer in commodity-led rally - we see 1425/35 by year-end."

Visualizing The Wealth Of Nations Over 2000 Years

From Year 1 to today, Angus Madison, a British economist who specialized in measurement and analysis of economic growth and development, combined modern research techniques with his own extensive knowledge of economic history to estimate the historical spread of The Wealth of Nations...

Warren Buffett And Weather Forecasts

"Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices."

Will The ECB Finally Use The Greek "Nuclear Option" This Wednesdsay?

With both sides digging in and unwilling to budge, will Europe revert back to its strategy from day 1, namely creating a slow initially, then fast bank run in Greece, one which leads to gradual then sudden capital controls, resulting in civil discontent and disobedience and ultimately, a violent overthrow of the Greek government.

Bilderberg 2015 – Where Criminals Mingle With Politicians

"This is what happens when you let money run riot and you allow industries to police themselves. This is what happens when the rich and powerful are endlessly granted special privileges, celebrated and permitted or even encouraged to place themselves above the law. And this is what happens when ordinary people feel bored by and excluded from politics, largely because their voices matter so little..."

In Dramatic Decision Judge Finds Fed Bailout Of AIG Was "Illegal", Government "Violated Federal Reserve Act"

"Starr alleges in its own right and on behalf of other AIG shareholders that the Government’s actions in acquiring control of AIG constituted a taking without just compensation and an illegal exaction, both in violation of the Fifth Amendment to the U.S. Constitution.... Having considered the entire record, the Court finds in Starr’s favor on the illegal exaction claim. As the Court noted during closing arguments, a troubling feature of this outcome is that the Government is able to avoid any damages notwithstanding its plain violations of the Federal Reserve Act. "

-  U.S. Court of Claims Judge Thomas Wheeler

Magna Carta Now: Riots, Real Justice, & Reaching Our Own Runnymede Moment

Right now it’s pretty clear that the temperature is rising. People are starting to wake up to the fact that, when it really counts, they’re no more free than a medieval serf. They pay taxes at gunpoint. They have no access to real justice. And many of the most important aspects of their lives, from the value of their savings to their medical care to the way they’re allowed to educate their own children, are tightly controlled. If the surge in riots and anti-government violence is any indicator, it looks like history may be repeating itself. And we may soon be reaching our own Runnymede moment.

Gap To Fire Thousands, Close A Quarter Of All Specialty Locations

Moments ago, one of the biggest clothing retailers in the US confirmed the worst nightmares about the state of US consumer spending, when it reported that it would shut down over 25% of all of its specialty stores in the US, or about 175 (of which 140 will be shut in the current year), leaving the firm just 500 specialty locations and 300 outlet stores. And, in addition to the thousands of job terminations these closures would entail, the company will further fire another 250 in its headquarters.

Hillary Clinton Backs Fast-Track On Obama's Trade Deals

Hillary Clinton actually supports Barack Obama’s trade-policy, and even supports the way in which he is trying to get it through Congress. However, the news-media didn’t report it that way. Hilary is repeating her earlier tactics, in 2008, when she tried to give the impression that she had opposed her husband Bill Clinton’s NAFTA, though in fact she had earlier bragged about how great it was for the country and claimed it as if it were her own.