Brazil

Add It Up... And It Doesn't Add Up

Continuing deceleration of population growth offset by rate cuts incentivizing ever greater debt loads (with continually underperforming GDP) was the central banks only play. And now as population growth and decelerating demand really begin to wane...the playbook is basically exhausted save for one play...simply print money with which to buy and "permanently retire" those assets. Think Treasury's, think MBS, think equity's...think anything that can be digitally created and digitally destroyed all to perpetually shrink the outstanding float (think perpetual short squeeze). How long this can maintain asset values northward march in the face of the populations southward divergence is anybody's guess.

Just Stop It!

The posse of fools in the Eccles Building is so petrified of a stock market hissy fit that it has more or less created a Wall Street doomsday machine.

Paul Craig Roberts: "Americans Are A Conquered People"

The optimism that we see is that the public’s support of outsiders is an indication that the insouciant public is waking up. But Americans will have to do more than wake up, as they cannot rescue themselves via the voting booth. In our opinion, the American people will remain serfs until they wake up to Revolution. Today Americans exist as a conquered people.

If You're Going To The Rio Olympics, Here's How To Make A 56% Return 'Legally'

Despite warnings that "your life is at risk," the threat of Zika, a collapsing government, and rising social unrest, many will still visit Brazil this summer for the Rio Olympics. As a public service announcement, we believe that making the trip should be worthwhile for those strong-willed travelers treking to South America; and, courtesy of Deutsche Bank, we have found a 'foolproof' way to turn a 56% return... should you wish to.

Understanding Societal Collapse: Warnings From Venezuela's Crisis

"For the average "middle class" person in Venezuela -- educated and still holding on to a good job -- he needs two years of wages to buy a single plane ticket in his own currency. He's stuck there. The problem is that he waited too long to leave... You can't even find some land and grow your own food. You cannot do that when you have the government stealing it from you. It’s a no win situation."

Brazilian Risk Assets Slammed After New President Suffers First Corruption Scandal Crisis

Today we got confirmation how much of an uphill climb the Temer administration will have when Brazil's Folha de S. Paulo newspaper reported that it has had access to recordings of conversations that took place in March between then-senator Romero Juca and current minister, and a former executive linked to state-run oil company Petrobras. In the conversations, the minister allegedly says a change in federal government leadership would lead to an agreement to prevent the wide corruption probe dubbed Carwash from proceeding.

Can Russia Survive Washington's Attack?

Neither Russia nor China seek conflict. It is a gratuitous and reckless act for Washington to send the message to Russia and China that they must choose vassalage or war.

The Mother Of All Head & Shoulder Patterns Just Completed The Right Shoulder

China was, in essence, the right shoulder to the greatest head and shoulder pattern in the history of mankind.  Central banks and federal governments will do everything in their power to maintain the present system.  They will attempt anything and likely everything to maintain what ultimately cannot be maintained.  Unfortunately, no one knows how much is too much and the economic, financial, and societal ramifications.  Invest accordingly?!?

Is China A "House Of Cards"?

Xi not only is the Commander-in-Chief in the fight against corruption; he’s now Commander-in-Chief of China’s joint battle command center as well. Yet even this awesome concentration of power does not mean that Xi is an unassailable deity. On the key drama – the state of the economy – it has emerged that in a recent interview by the People’s Daily with an anonymous “authoritative person”, printed on the front page and exposing deep economic divergence among the CCP leadership, the “authoritative person” in question was none other than Xi. He had to take to the key media read by anyone who’s anyone in China to press his point on how to fix China’s debt-ridden economy; low growth is OK, and the new normal; as for blind credit expansion/monetary easing, that’s not OK. Xi, once again, is adamant; it’s now or never to start a painful restructuring of the Chinese system.

SaxoBank CIO Warns "Central Banks Can Do Nothing"

Saxo Bank chief economist Steen Jakobsen said that zero rates, zero growth, zero productivity, and zero reforms have left a great many countries adrift in a “new nothingness”. The products of this nothingness, said Jakobsen, include apathy, stagnation and “an economic outlook based more in peoples’ heads than in reality”.

With 'Recovery' Disproved, There Is Every Need To Examine The Worst Case

There is a great deal that is wrong with mainstream economic commentary, starting with its unwavering devotion to orthodox economics and unshakable faith in their “stimulus.” No matter how little is actually stimulated there is never any doubt that the media will simultaneously forget the last one while lavishing praise on the next one. It is, however, the actual economic commentary itself that may be the most damaging. Because nothing works, every news story is printed from the shallowest, narrowest perspective. It is a grave disservice to the public and journalism.