Censored By Sanction? Barclays Freezes Accounts Of Russia's News Agency

The UK has frozen the bank account of Russia's Rossiya Segodnya news agency without any explanation. "To close the account of one of the world’s leading news agencies is censorship, the direct obstruction of journalists’ work," Dmitry Kiselyov, head of the news agency, exclaimed, asking "what kind of press freedom and democracy can Britain claim to have if it prevents one of the world's largest news agencies from working in the country?" As RT reports, while no official justification for the move has been offered, RT reports a source in the banking sector told the agency the Exchequer has put Dmitry Kiselyov on an anti-Russian sanctions list. With David Cameron in full tyrannical 1984-mode, this latest move is perhaps not entirely surprising (though we await the boomerang from Putin).

China Big Cap Stocks Continue Slide Despite Another Liquidity Injection; Margin Debt Rises For 2nd Day

"This has caused me a lot of heartache. It will take some time to recover," exclaims one disgruntled (and self-admitted greedy) Chinese investor who lost it all in the recent equity market demise. "It is forever a planned market, a planned economy," which as one China policy professor noted, means "the massive state intervention, especially preventing major shareholders from selling shares and going after short sellers, has damaged financial sector reform in profound and permanent ways." Having fallen over 4.5% from its highs into the close yesterday, the CSI-300 index and FTSE China A50 are both opening weaker as nearly 30% of securities remain halted and margin debt rises for the 2nd day in a row.

"Someone Has To Be Held Accountable", House Committee Presses Fed On Leaks

When last we checked in with Rep. Jeb Hensarling, the Chairman of the House Committee on Financial Services, he was in the process of learning a frustrating lesson about central bankers in the post-crisis world. Namely, that whatever pretension of accountability the position of Fed chair retained in the lead up to the crisis disappeared entirely when Ben Bernanke 'saved the world' from financial armageddon in 2008.

Will Chinese Farmers Never Learn?

A 30-40% decline in indices and still it appears the average Chinese person thinks "making money trading stocks is easier than farmwork." As the following chart shows, a thundering herd of margin calls, panicing policy makers, and media frenzy has done nothing to dampen renewed gambling fever in what is now the most speculative nation in the world as margin-financing as a percent of trading volumes has exploded once again in the last few days...

David Einhorn Says Varoufakis "Must Not Be Familiar With The Tyler Durden School Of Negotiation"

"Mr. Varoufakis, who kept reminding everyone that he is a professor of game theory, believed that the European leaders would prefer to make concessions now rather than manage the disruption of a Greek default. He must not be familiar with the Tyler Durden school of negotiation: the first rule of using game theory is you do not talk about using game theory. What’s more obvious is that Syriza didn’t understand what the game is."

Germany Just Killed Its Golden Goose

It’s not just about Greece, it’s about the whole EU. The Troika thinks that by scaring the living daylights out of the periphery, its power will increase. Germany just killed its golden goose. And boy, is that ever stupid. The main thing here is that Don Corleone was not a psychopath or sociopath, and that’s more than you can say for Schäuble and Dijsselbloem and Juncker and their ilk. While brute force may look attractive and decisive and all, in the end it will be their undoing. The Italians and Spanish and French have noted every word of this, and more. Europe as it is, is already over. Everything from here on in is a mere death rattle.

US Automakers Worst Nightmare: Chinese Auto Inventories Explode In May

A week ago we exposed the massive number of cars piling up in GM's parking lots in China. A few days later, we note that Chinese auto sales have collapsed at the fastest rate in 3 years and an increasing number of new orders are being cancelled as the stock market crashes. But the triple whammy for US auto manufacturers - who have incessantly pitched China as their growth engine - is news from Huaxia Times that China's import car dealers saw inventory days reach a mind-blowing 143 days in May. For context, the normal average has been 24-36 days. Once again it appears the serial extrapolators at the automakers, excited by the serial extrapolators at the big banks have excitedly mal-invested right at the turn.

Cashtration: As Goes Greece, So Goes The World

The tedious drama that we’ve been observing in Greece in recent years is far from over. What we’re witnessing is the greatest credit bubble/debt bubble that mankind has ever seen. What we’re seeing in Greece is not merely a country of socialistically inclined people behaving very foolishly. We’re seeing a small pin pricking a very large balloon. Greek debt is tied to EU debt. EU debt is tied to world debt. The coming debacle may unfold in this manner...

The One Lesson To Learn Before A Market Crash

Greece is saved!!! I mean BANKERS are saved!!! The market will celebrate the total capitulation of Greece to the EU bankers. Nothing has been resolved. The debt won’t be repaid. The can has been kicked again. Portugal, Spain, Italy, Ireland and even France are essentially insolvent. It’s all a ponzi scheme. The bankers win and the people lose. Hope is not a strategy. Hussman’s weekly tome shows how a crisis plays out. Bad shit happens and the powers that be react with bad solutions that keep their wealth and power protected. Their bad solutions lead to a worse crisis. More bad solutions. And so on, until complete collapse.

German Production Is A Facade Built On Bad Loans...

Similar to the US banks who funded home owners that shouldn’t have received mortgages and made a fortune doing so – at least initially, the Germans funded the periphery nations in an effort to drive output growth domestically. However, financing a large portion of ones’ customer purchases is a high risk endeavour. And the Germans are in the midst of this hard lesson.

Why Did Schauble Almost Use The "Nuclear Option" - Tim Geithner Explains

"The idea was that with Greece out, Germany would be more likely to provide the financial support the eurozone needed because the German people would no longer perceive aid to Europe as a bailout for the Greeks. At the same time, a Grexit would be traumatic enough that it would help scare the rest of Europe into giving up more sovereignty to a stronger banking and fiscal union."

To Mexico And "Beyond": Flash Boys Get Warm Welcome In Emerging Markets

"Exchanges around the world are avidly wooing high-frequency traders, those controversial speed demons of Wall Street. Despite the often explosive debate over this kind of trading in the U.S., bourses in Mexico, Turkey, South Africa and beyond are trying to lure HFT types to boost business," Bloomberg reports.

Argentina As A Model For Greece

"I think that if Greece were to leave the Euro things would get very complicated for them... and this would create the same very unhealthy situation as we have in Argentina. Why? If people start storing value in a foreign currency, in this case Greeks using Euros, this will create a huge lack of transparency and affect normal trade flows and transactions. And we know that the parallel economy in Greece is already quite large the way it is. So imagine an exponential version of that. It would be a very difficult period for Greece."

Even The Players Are Losing Faith In Their Own Shenanigans

What is on display more brightly and clearly than ever, though, is the utter fakery of international banking. The players have lost faith in their own shenanigans. They simply go through the motions now awaiting the political fallout, which is to say the revolt of the people who can still do arithmetic. The old refrain, “your check is in the mail” may not be so reassuring to folks who haven’t eaten for three days. Personally, I would expect the gasoline bombs to be flying around Syntagma Square before the middle of the week.