Evil corporate America meets oppressive police state: “When we received word of potential strikes and disruptive activity on Black Friday 2012, that’s when we started to ask the ARC to work with us. ARC had contracted with Lockheed leading up to Black Friday to help source open social media sites.”
Since our Keynesian central bankers have no clue that their prodigious money printing resulted in the drastic underpricing of credit and capital over the course of the past two decades, they are flying blind. They simply fail to see that the global economy is now swamped in more excess capacity than at any time since the 1930s, and probably even then. So they keep expecting the commodity cycle to momentarily bottom and prices to rebound, thereby reflating CapEx and household spending.
If you missed the third democratic debate, don't worry, you are not alone: the President himself had much more important pursuits to attend to when the potential successor from his party was laying out her (or his) ideological vision for the future of America.
The upside is ephemeral, illusory or wishful thinking; the downside is real and lasting.
Combine the rising regulatory burden with the decline of entrepreneurship, and you get a bubbling brew that is toxic to self-employment/small business.
Over the last two decades the Fed’s interventionism has created artificial booms and real busts. Their dreadful mistakes are “fixed” by currency debasement, lower interest rates, and money printing – creating even worse mistakes. They have successfully gutted the American economy and left a hollowed out shell. The coming collapse will be three pronged as stocks, bonds, and real estate are all simultaneously overvalued. Junk bonds are the canary in a coalmine. High end real estate in NYC has topped out. New and existing homes sales growth has stalled out. Retailers desperately slash prices to maintain sales, while destroying their profits. Corporate profits are falling. The stock market is teetering on the edge.
Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe. This is no where more true than Forex.
To help Main Street, the Fed must stop incentivizing speculation over investment and end policies that have shifted wealth and income to the top of the wealth pyramid. Main Street's woes are largely structural: the high cost of regulations, the soaring cost of healthcare insurance, the artificial-scarcity costs imposed by cartels enforced by the federal government and the pressures generated by globalization and automation. The Fed can't solve those problems, but it can certainly stop enriching the already-super-wealthy at the expense of the rest of us.
It is vital to give proper consideration to the improper liberties that are being taken by those with “unwarranted influence” and “misplaced power”. Value extraction has replaced value creation in pursuit of short?term, self?serving benefits at the expense of long?term stability and durability of corporate America and therefore the country as a whole. As citizens, our obligation is to be well?informed, cognizant, outspoken and to vote. The words of men may temporarily suspend but they do not alter the laws of financial dynamics. The fundamentals always take precedence eventually.
For all intents and purposes, the National Security Agency has supposedly ceased its bulk collection of metadata from Americans’ phone calls, but read the fine print: nothing is going to change.
What should the rational investor do in an environment of ongoing financial repression? If you wanted to trigger a bank run, this is certainly how you might go about it.
- Brussels on Edge as Lockdown Continues (WSJ)
- Stocks Pare Decline as Crude Oil Erases Drop on Saudi Comments (BBG)
- Italy’s Eni Plans to Pump Arctic Oil, After Others Abandon the Field (WSJ)
- Treasuries Decline as Economists Say GDP to Be Revised Higher (BBG)
- Why the Housing Rebound Hasn’t Lifted the U.S. Economy Much (WSJ)
- Argentina Fever Is Back for Investors as Kirchner Rival Triumphs (BBG)
The Fed was out in force yesterday peddling some pretty heavy-duty malarkey about the up-coming rate liftoff at the December meeting..."If we begin to raise interest rates, that’s a good thing." That’s not a bad thing." Goldman is putting out the final mullet call for this Bubble Cycle because it knows that this bull is dying; that insiders still have massive amounts of stock winnings to unload; and that the clock is fast running out. The expiring clock is evident in the S&P 500’s one-year round trip to nowhere. Despite the fact that the Fed has ponied-up a stick save at every single meeting this year, the market’s 27 separate efforts to rally have all failed for the simple reason that the jig is up.
Westerners have a deep history of a culture of myths (see Joseph Campbell). We love to believe in Santa Claus, "The American Dream," the Tooth Fairy, housing market always goes up, and countless others. So it's easy for us to be 'terrorized' by a myth; that hiding behind every corner are evil 'terrorists' waiting to blow themselves up because 'they hate our freedoms.'
- Security jitters drive European investors back to safe havens (Reuters)
- Global Anti-ISIS Alliance Begins to Emerge (WSJ)
- Merkel says cancelling soccer match was 'responsible' decision (Reuters)
- Paris attacker may have had accomplice on journey through Balkans (Reuters)
- Drop Assad demands if you want to unite against Islamic State: Russia to West (Reuters)
- Putin sets up commission to combat terrorism financing (Reuters)