If you share our sense of outrage at the way wounded veterans are treated by Delta Airlines and other commercial carriers, then please get involved. Merry Christmas
- Global Currency Tensions Rise (WSJ) - in other words, when everyone eases to infinity, nobody eases
- EU to give Spain, France more time to cut deficit (Reuters) - But not because their economies are not "recovering" fast enough, oh no.
- As we expected, Grupo Bimbo considering a bid for Hostess' snack cakes and bread brands (NY Post)
- Time for bus-control: Eleven children killed in latest Chinese bus crash (Reuters)
- Greece Should Write Off Billions of Overdue Taxes, Report Says (BBG) - not all taxes in perpetuity?
- India clamps down on gang-rape protests, PM appeals for calm (Reuters)
- But Meredith Whitney said... Push for Cheaper Credit Hits Wall (WSJ)
- For Greece, last major austerity package, says eurozone official (Kathimerini)... "unless there is another one"
- Americans Miss $200 Billion Abandoning Stocks (BBG) ... and two flash crashes... and $15 trillion in artificial central bank props
- Goldman Sachs Takes Long View Over Payouts (FT)
- Cliff Would Strike Low Incomes Hard (WSJ)
- Afghan policewoman kills US police adviser (AP)
- For Sale in Japan: Electronics Assets (WSJ)
We believe that because the Rockefellers and Rothschilds created our “modern” banking system with the express diabolical intent of transferring the wealth of nations to themselves with zero work and of preventing the people of these nations from revolting through the imposition of debt enslavement achieved through the administration of the fractional reserve banking system, it is impossible to be a moral person and work for a bank.
Why Did We Lose Our Rights if the Government Isn’t Even Keeping Us Safe?
Bryant saw a flash on the screen: the explosion. Parts of the building collapsed. The child had disappeared. Bryant had a sick feeling in his stomach. “Did we just kill a kid?” he asked the man sitting next to him. “Yeah, I guess that was a kid,” the pilot replied. “Was that a kid?” they wrote into a chat window on the monitor. Then, someone they didn’t know answered, someone sitting in a military command center somewhere in the world who had observed their attack. “No. That was a dog,” the person wrote. They reviewed the scene on video. A dog on two legs? The above article is a must read for every American citizen, particularly those that get up in arms about domestic gun control, but never think twice about the horror caused by our foreign policy, which regularly murders innocent children overseas.
Even as the Nobel peace prize award-winning administration has been vocally partially withdrawing, but never fully, US troops from various middle eastern nations over the past several years, it appears that it has decided to open up a brand new military front, and position US soldiers in yet another hotspot, which is sure to escalate in the future, namely Syria, where yesterday, quietly in the media blanket coverage of the Newtown tragedy, the Pentagon said that some 400 US troops and several Patriot missile batteries would be stationed as part of a NATO force to protect Turkey from "potential Syrian missile attack." As the AP reports, "Defense Secretary Leon Panetta signed a deployment order en route to Turkey from Afghanistan calling for 400 U.S. soldiers to operate two batteries of Patriots at undisclosed locations in Turkey, Pentagon press secretary George Little told reporters flying with Panetta." As is well known to those who follow the local conflict, the traditional narrative is that the US is supporting the oppressed Syrian rebellion, which has been fighting the Assad regime as glorious guerrilla freedom fighters. What is less known is that parts if not all of the Syrian rebellion have an "explicit stamp of approval" from Al Qaeda, the same Al Qaeda, which when useful, is carted out to justify US foreign, and at times very domestic, interventions, and the trampling of all civil liberties (see U.S. Terrorism Agency to Tap a Vast Database of Citizens) , in various other parts of the world.
American Military Starts Assassinating Children
There was a time when working on Wall Street, either on the sell or buy side, was the dream of every able-bodied worker who could do simple addition in their head and wasn't afraid to cut the occasional corner in exchange for a bottle of Bollinger and a sizable year end bonus. That, however, was so 2006 and with the long overdue conversion of the banking sector into a utility the stratospheric compensation payments from the peak of the credit bubble are long gone. So what is the New Normal dream job? Become a California state worker, preferably one who deals with neurotic and/or crazy people (i.e., a psychiatrist), and rake it in. The following chart from Bloomberg shows just how generous the otherwise insolvent state of California is when it comes to paying its public servants, and the 100%+ increase in California employee state pay since 2005. Needless to say, this is a rate of increase in compensation that 99% of workers in the private sector would die for.
It must be pointed out that gold is certainly no longer the bargain it was at the lows over a decade ago (at which time Warren Buffett undoubtedly hated it just as much as today). This is by no means akin to saying that there is no longer a bull market in force though. What seems however extremely unlikely to us is that the long term bull market is anywhere near to being over. After all, the people in charge of fiscal and monetary policy all over the globe are applying their 'tried and true' recipe to the perceived economic ills of the world in ever bigger gobs of 'more of the same'. Until that changes – and we feel pretty sure that the only thing that can usher in profound change on that score is a crisis of such proportions that the ability of said authorities to keep things under control by employing this recipe is simply overwhelmed – there is no reason not to hold gold in order to insure oneself against their depredations.
Tim Geithner's time is almost done, but the former NY Fed head is only one of very many whose position is expected to be replaced in Obama's second term (just so there is a non-continuous chain of command if and when the time comes for the people to demand an explanation for the state of the US economy from the talented Mr. Geithner). Who else is out and who is expected to be in? The following list attempts to cover all upcoming rotations at the top of the US cabinet. What is not attempted is a prediction of where in the private sector people such as Geithner will end up: that is considered largely self-explanatory.
Sweeping changes are taking place at the state level as pension trustees and legislatures push for higher monthly contributions to pension plans, a later retirement age and lower annual cost-of-living adjustments for current and retired workers. Unions (those that don't make Twinkles, in any event), are making the concessions because they can see the future absent shared sacrifice — the termination of defined benefit plans in favour of defined contribution plans. Be that as it may, employee contributions are going up — a de facto tax hike. And this will work directly against any upturn in consumer spending when you consider that the state and local government sector employ nearly 20 million people or 15% of the national job pie. So we will have less government, fewer entitlements and more whisperings that it isn't just the $250,000+ high-income households that are going to experience tax increases and diminished disposable income growth. This is shared sacrifice. To think that the nation could have ever gone to war in Iraq and in Afghanistan under the Bush regime, putting our troops at great risk not to mention the emotional scars on their families, while here at home civilians would be allowed to enjoy tax cuts and a debt-financed consumption binge.... One has to wonder what events could provide positive momentum to GDP growth, push corporate earnings to record highs as the consensus predicts as early as next year, or generate any lasting inflation, for that matter. It's the people that make these pricing decisions. Businesses can only price up to what consumers are willing to pay. It is households that determine whether or not we have inflation, not some bureaucrat in Washington who believes he has control over some printing press.
Is this really the reason why markets are rallying today? (or is it front-running the potential 'cone of silence' from a long-weekend in DC) We suspect neither, but Mike Krieger, having written extensively on the two-party political sham, notes the issue is that both the Democratic Party and the Republican Party are at their core the same on the big issues most affect these United States at this time. This past election should have been a wakeup call to the Republican establishment, but based on John Boehner’s recent actions, they have learned absolutely nothing. The Republican Party is imploding from within since its leaders don’t actually stand for anything. Here is how Mr. Boehner treats those within his party that do stand for something.
"High ranking generals and admirals earn their stars. They earn their stripes. Then, they earn their cash." Citizens for Responsibility and Ethics in Washington (CREW) has just released a fantastic new report on the revolving door between the Pentagon and the private sector, which raises serious concerns not only about ethics and corruption within the defense sector, but also raises issues of national security if retired generals are merely acting as mercenaries once they retire. As Mike Krieger notes: "When I first figured out the gigantic ponzi scheme, theft and fraud within the financial system... I never imagined the same thing goes on in virtually every sector of our corrupt crony capitalist economy... including the military." Absolutely incredible...
The schizophrenia in US equity markets (and by correlation all risk markets) is nowhere better highlighted than the last 24 hours of 2% swings in the S&P 500 on nothing more than boiler-plate comments from DC. However, as BofAML's Ethan Harris notes, "the year-end fiscal challenges in the US are more like an 'obstacle course' than a 'cliff' - politicians must navigate about 10 major policy decisions before year-end." We continue to expect a messy multistage deal on the cliff - with some wishy-washy partial deal late December and more complete resolution (as it will be called) late Spring. We agree with BoFAML's view that until then, we suggest that investors fade the likely “press fakes” of an imminent deal, and brace for downside volatility. It seems to us that the negotiations remains stuck at square one.
- OECD slashes 2013 growth forecast (FT)
- Fiscal Cliff Compromise Elusive as Congress Returns (Bloomberg)
- China’s PBOC Chief Search Spurs Focus on Finance Regulators (Bloomberg)
- Elected, but Still Campaigning (WSJ)
- Pentagon Readies Options for Afghanistan Force After 2014 (Bloomberg)
- Greece Wins Easier Debt Terms as EU Hails Rescue Formula (Bloomberg)
- Monti presses Cameron for EU referendum (FT)
- Welcome, Mr Carney – Britain needs you (FT)
- Argentina seeks halt to $1.3bn debt order (FT)
- Asean chief warns on South China Sea disputes (FT)
- South Korea Tightens FX Rules to Temper Won Surge (WSJ)