Government interference gone mad... "Do It For Denmark"
Both sides held a gun to the nation’s head. The gun backfired.
The growing dilemma we now face is private police officers outnumber public officers (more than two to one), as the corporate elite transforms the face of policing in America into a privatized affair that operates beyond the reach of the Fourth Amendment. What we’re finding ourselves faced with is a government of mercenaries, bought and paid for with our tax dollars, all the while claiming to be beyond the reach of the Constitution’s dictates. When all is said and done, privatization in the American police state amounts to little more than the corporate elite providing cover for government wrong-doing. Either way, the American citizen loses.
With the world and his cat positioned for spread compression in European peripheral sovereigns ahead of the ECB's Q€, the natural 'short' that weighs on Bunds (against Spain, Italy, Portugal etc.) is being massively squeezed this morning. 10Y Bund yields have ripped 11bps from the start of the ECB press conference... in context, that's a 25% collapse in yield.
Just over a year ago, we warned that while the world of speculative capital is focused intently on the Twitter and Facebook #Ref/0 fundamental valuations in the publicly-traded equity markets, the real dot-com 2.0 bubble is occurring in the private markets. Few paid attention, prefering the head in the sand "well the music is still playing" meme; but one (or two) billionaires noticed, and with all eyes intently focused on Nasdaq 5,000 (as some indicator that we made it back to Nirvana), Mark Cuban unleashes uncontestible exposition why is this bubble far worse than the tech bubble of 2000.
What people and central bankers do not understand, is that you can't devalue your way to prosperity. Absolutely nothing has changed since the last crisis. The same too big too fail banks have only gotten much bigger. The same people that were in charge leading into the crisis and during it, are the same people who are in charge of fixing it. New regulations were established to try and regulate the industry, but they will be proven to be ineffective. Why? Because the Volcker Rule and Dodd-Frank have had all the important elements removed, thanks to the massive lobbying power of the TBTF banks and the Fed.
It is becoming clear that a pretty wide divide seems to appear between what many people think the Syriza government in Athens should do, and what they actually can do at this point in time. It should be useful to clarify what this divide consists of, and how it can be breached, if that is at all possible.
There is no exit strategy…there is only a continuation strategy... and The Fed’s cronies have always known this. Yellen is simply paralyzed with fear that the markets will violently react to a tightening of policy. The Fed is being held hostage to the financial markets but, ironically, is in no mood to escape its captors despite so many clear opportunities. The lack of action, by Yellen, can only be described as cowardly.
"Ultimately... it would be very hard for Greece to introduce a viable new currency unilaterally."
- Goldman Sachs
TINA and the complacent belief in free lunches strip the resiliency from a system and leave it vulnerable to collapse...
"...we are failing to deliver on our obligations as Americans, that is undeniable. We are allowing the political class to plunder our wealth, negate our freedoms and desecrate our Constitution. Sadly we have become the immoral populace our founding fathers warned all future generations not to become... The duty and obligation is ours and so too then are the failures and successes of our society. We are 15 years in to what is absolute denial regarding the competence of our nation’s policymakers. Yet here we sit, silent and indifferent to our own demise; so completely antithetical to the character of a true American."
Those of us who are libertarians have a tendency to speak frequently of “the New World Order.” When doing so, we tend to be a bit unclear as to what the New World Order is. Is it a cabal of the heads of the world’s governments, or just the heads of Western governments? Certainly bankers are included somewhere in the mix, but is it just the heads of the Federal Reserve and the IMF, or does it also include the heads of JPMorgan, Goldman Sachs, etc.? And how about the Rothschilds? And the Bundesbank—surely, they’re in there, too?
And then there were 21. Hours ago on Saturday, the country whose currency is largely pegged to the dollar which itself is now anticipating a rate hike in the coming months, surprised the world by confirming its economic slowdown yet again following a recent rate cut just this past November when it lowered its benchmark rate by 40 bps, after it again cut benchmark lending and deposit rates by 25 bps starting on March 1. Specifically, the PBOC will lower the one-year lending rate to 5.35% from 5.6% and its one-year deposit rate to 2.5% from 2.75%. It also said it would raise the maximum interest rate on bank deposits to 130% of the benchmark rate from 120%.