Moments ago, the Goldmanite in charge of the European Central Bank delivered yet another speech, this time seeking to offset some of the hawkish comments over the weekend from his comrades, all of which suggested that no more easing, or public QE, was coming any time soon. It was, as usual, full of the same lies that have pushed European stocks to highs not seen since Lehman even as Europe's economy is now slumping into a triple-dip recession. Here is a choice selection of his comments, properly annotated.
- Scots spurn independence in historic vote but demand new powers (Reuters)
- Salmond’s Journey as Scotland’s Leader Ends Short of Destination (BBG)
- European Stocks Rally to 6 1/2-Year High on Scottish Vote (BBG)
- Jack Ma Planning Personal Roadshow With Clinton to Immelt (BBG)
- Some consumers say Apple is losing its 'cool' factor (Reuters)
- Gold IPhones at $3,600 as China Delay Fuels Black Market (BBG)
- This Man's Job: Make Bill Gates Richer (WSJ)
- Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers (BBG)
- France says it launches first air strikes in Iraq (Reuters)
Whatever Russia does, doubt does not even enter the equation. The answer is sanctions. So here we go again. No one ever lost money betting on the stupidity of the usual, unknown “senior US officials” – who are now spinning the latest sanction package is to force Moscow to “respect international law and state sovereignty.” A cursory examination of the historical record allows this paragraph to be accompanied by roaring laughter. As for Russia’s "isolation", companies are barred from, in Washington-Wall Street newspeak, "important dollar-denominated funding sources." Or, euphemistically, "Western capital." This means the US dollar and the euro. Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro.
Moments ago, as was widely preannounced, the US Treasury unveiled its latest round of Russian sanctions. While the bigger picture was well-known, here are some of the highlights:
- U.S. SANCTIONS FOCUS ON FINANCIAL, ENERGY, DEFENSE SECTORS
- U.S. TREASURY ADDS SBERBANK TO SANCTIONS LIST,
- U.S. TREASURY SANCTIONS AFFECTS GAZPROM, GAZPROM NEFT, LUKOIL, ROSNEFT, AND SURGUTNEFTGAZ
- U.S. TIGHTENS DEBT FINANCING RESTRICTIONS TO 30 DAYS
And instantly: PUTIN: GOVT DRAFTING PROPOSALS TO RETALIATE AGAINST SANCTIONS
- Russia faces new U.S., EU sanctions over Ukraine crisis (Reuters)
- Glasgow pulls no punches in welcome to 'Save the Union Express' (Guardian)
- Pound Seen Tumbling Up to 10% on Scottish Yes Vote (BBG)
- Moscow stifles dissent as soldiers return in coffins (Reuters)
- Ukraine's leader sees no military solution of crisis, eyes reforms (Reuters)
- Venezuela Threatens Harvard Professor for Default Comment (BBG)
- Australia Raises Terror Alert to Highest Level in a Decade (BBG)
- Activist Investors Build Up Their War Chests (WSJ)
U.S and NATO Responsible for Ukraine Crisis … and West Has Agreed to Cover Up Details About Shoot Down of Malaysian Airlines Flight 17
- Just how many rats are there? Steven Cohen's Firm Loses Another Top Executive (WSJ)
- Iceland Sees a Potential Volcanic Eruption, and Airlines Cower (Bloomberg)
- Iraqi forces battle to drive jihadists from Saddam's home town (Reuters)
- Israel, Palestinians Agree to Extend Gaza Truce for 24 Hours (BBG)
- Pimco now buying junk (BusinessWeek)
- Pakistan arrests 147 in Punjab towns as protests in capital continue (Reuters)
- Ex-Rabobank Employee Pleads Guilty in Libor-Rigging Probe (BBG)
- Ebola Orphans Targeted by Aid Groups as Newest Victims (BBG)
- Two California youths accused of plotting high school shooting spree (Reuters)
- Only Rich Know Wage Gains With No Raises for U.S Workers (BBG)
- Fed Decision-Day Guide: QE Tapering to Inflation Debate (BBG)
- Obama says strains over Ukraine not leading to new Cold War with Russia (Reuters)
- Siemens to BP Prepare for Downward Russia Business Spiral (BBG)
- Paying Ransoms, Europe Bankrolls Qaeda Terror (NYT)
- Argentina Banks Preparing Bid to Help Argentina Avoid Default (WSJ)
- Obama Weighs Fewer Deportations of Illegal Immigrants Living in U.S. (WSJ)
- India Warships Off Japan Show Rising Lure as China Counterweight (BBG)
- Hong Kong Popping Housing Bubbles London Can’t Handle (BBG)
- Carnage at U.N. school as Israel pounds Gaza refugee camp (Reuters)
The attached Barron’s article appeared in December 2007 as an outlook for the year ahead, and Wall Street strategists were waxing bullish. Notwithstanding the advanced state of disarray in the housing and mortgage markets, soaring global oil prices and a domestic economic expansion cycle that was faltering and getting long in the tooth, Wall Street strategists were still hitting the “buy” key. In fact, the Great Recession had already started but they didn’t have a clue: "Against this troubling backdrop, it’s no wonder investors are worried that the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears."
It had to happen! The blame game on that horrendous airline incident has reached the expected loud monotone of pointing fault, lock, stock and barrel at Russia... and, more specifically, to that villain ex-KGB Slav, Vladimir Putin. The US media barrage of grotesque and obscene propaganda against America’s former foe and competitor has found a leader of this warring marching band in Barack Obama. If the UN is incapable to change or influence the hegemonic geopolitical behavior of the United States... where else can the world look to find resolution to conflicts such as we have in Gaza and Ukraine today? Enter the BRICS group of nations...
"As the cost of food continues to rise, the cost of not paying attention to what you are eating rises exponentially. Companies will continue to try to mask inflation by shrinking package sizes, and when that is no longer possible, increasingly inserting empty fillers (or worse) into their products."
Today, we can finally end any debate on the topic of just where the world's illegal money comes to roost. The answer: ultra-luxury real estate, primarily in New York, courtesy of a report in New York magazine that catches up with what we first said in the summer of 2012, and which is titled, appropriately enough: "Stash Pad."
Now, for the first time, we have empirical proof that hedge funds are indeed on the verge of extinction. In its hedge fund quarterly note (which it clearly ripped off from Goldman), Bank of America has concluded what we said in the beginning of the decade: "Hedge Funds are less attractive post the financial crisis with lower alpha and less diversification benefits." Or, in other words, hedge funds (for the most part: this excludes those extortionists also known as activists who successfully bully management teams into levering up in order to buyback record amounts of stock, in the process burying their companies and employers when the next downturn arrives) no longer provide a service commensurate to their astronomical fees.
It’s been obvious for quite some time that the so-called “war on terror” is nothing more than a fear-mongering induced power grab; a convenient excuse to strip the citizenry of its civil liberties and humanity. Many commentators, including myself, have predicted for years that the entire counter-terror juggernaut that has been constructed post-9/11 would be ultimately redirected upon the domestic population. Snowden’s heroic whistleblowing has already proven without a doubt that the government spy apparatus (along with tech company complicity) has been zeroed in on the domestic population for quite some time, but is the situation about to escalate? Are the feds so fearful of their own people, they are about to focus all their counter-terror energy on U.S. citizens? It appears so.
As Senator Ron Johnson so appropriately blasted, "I'm not sure sanctions had any effect whatsoever other than, you know, the Russians have mocked them," and so it is that the Treasury's (little heard of) "Terrorism and Financial Intelligence" division is preparing to unleash its most deadly weapons yet - an arsenal of financial weaponry aimed at hitting foreign adversaries with limited cost to allies. It appears clear that while the US dropped speech-bombs and sanction-mines, proclaiming the disastrous economic significance of these efforts, Russian stocks soared (vastly outperforming the US) and the Ruble strengthened... and so - as undersecretary David Cohen tells the WSJ, "What we've done over the past 10 years is to create a new method of projecting U.S. power..." e.g. sell non-US stocks (thus buy US stocks).