If an economic system collapses in the woods and no one is paying attention, are there any consequences outside the woods? Well, yes, of course. As with most situations financial and global, however, consequences are not usually taken very seriously until they have spawned a vast bog of sewage we all have to then swim through. The issue is and always will be “interdependency,” and the dissolution of sovereign borders. The European Union dynamic, for example, can only end in one of two ways - the complete dismantling of the supranational body and a return to sovereignty, or, a socio-economic crisis followed by even more centralization and the end of all remnants of sovereignty. Either way, the consequences will not be pretty. The same strategy may also be used in the Western hemisphere; more specifically, the collapse in South America that almost no one in the mainstream seems to be paying much attention to.
Similar to Saudi Arabia, which is a swing producer, China is acting like a swing consumer. However, as China doesn’t report its storage data, it is difficult to estimate how long this trend will continue. Though other factors were involved in encouraging the bulls to buy at lower levels, the increased demand from China also helped in lapping up the excess production. If their imports drop, the world will return to the supply glut and oil prices will retrace back to the lower $30s per barrel.
Is Everyone Wrong On The "Causation" Of The Commodity Bubble? While it appeared 'retail' was responsible for the panic-buying chaotic volume surge in Chinese commodities, Axiom Capital Management's Gordon L Johnson points out that in fact... China Bank Special Interest Vehicles' "Bold" Commodity Speculation Is The Real Budding Black Swan
It’s been about 15 years now since passenger airliners struck the World Trade Center towers on 9/11, and we are still suffering the consequences of that day, though perhaps not in the ways many Americans might believe. The 9/11 attacks were billed by the Bush Administration as a “wake-up call” for the U.S., and neocons called it the new Pearl Harbor. But instead of it being an awaking, the American public was led further into blind ignorance. Clearly, after 15 years of disastrous policy, it is time to admit that the U.S. response to 9/11 has damaged us far more than the actual attacks ever could.
The financial system is sitting on the edge of a cliff and an increasing number of investors are beginning to realize it.
"A portfolio built to only withstand stress thanks to central bank intervention is one destined to blow-up spectacularly."
Austria Just Announced A 54% Haircut Of Senior Creditors In First "Bail In" Under New European RulesSubmitted by Tyler Durden on 04/10/2016 21:08 -0400
Following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.
Following protests by disaffected coal miners in the "gritty" streets of Shuangyashan, Beijing is out with a stark warning for Party officials: suppress demonstrations and social unrest, or lose your job.
It seems for Nassim "Black Swan" Taleb, less is more. After perfectly summarizing the circus that is the American Presidential election camapaign in 17 words last week, he appears to have gone one step further with a two-word summation: "No SHillary."
The system is rigged... and rotten. Elections are exercises in solemn deceit. And the Fed’s management of the economy is a mixture of delusion and self-serving scam. We don’t have much doubt about it. That’s just the way it is. But that honesty is "cynical" and "anti-American," according to some. However, we’re not alone in our skepticism. Apparently, about half the country is “anti-American.”
Just as with Siamese twins, it’s a risky proposition for one country to have too much dependency on another.
Trump’s blunt, angry, provocative, anti-establishment message has struck a chord among millions of disaffected Americans who have been ignored, abused, scorned, and shit on by the elitist establishment, banking cabal, corrupt politicians and government apparatchiks. The Deep State establishment has overstepped their bounds. Their ravenous pillaging of the national wealth through outsourcing millions of American jobs, largest mortgage control fraud in history, and outrageous gall in shifting their losing bets onto the backs of hard working Americans is about to bite them in the ass.
"People are not voting for Trump (or Sanders). People are just voting, finally, to destroy the establishment."
If WMP buyers decide to ‘go on strike’ for whatever reason, a liquidity crunch in the shadow banking sector could quickly develop in our view.
In recent weeks Chinese stocks remained relatively resilient, levitating quietly day after day. That all changed overnight when the Shanghai Composite plunged by 6.4% with the drop accelerating into the close. This was the biggest drop in over a month and was big enough to almost wipe out the entire 10% rebound from the January lows in one session.