FBI

Listening to the media gleefully hype the numerous construction flaws and rumors of corruption at the Sochi Olympics, we couldn't help thinking that Americans in general have no clue about Russia.  Here are some of the similarities and differences... "Russia is rising.  Maybe we can give her a high five on our way down.  Instead of criticizing others, look in the mirror America."

The ideal system for middlemen is the exact opposite of an open competitive market: low-risk fat profits flow to monopolies or cartels that obscure costs, and turn sellers and buyers into involuntary participants who have no other choice but to give money to the middlemen. The Internet is enabling sellers and buyers to bypass the predatory State and the parasitic middlemen the State enforces. Banks--no longer needed. Sickcare cartels--no longer needed. Higher education cartel--no longer needed.

U.S. Government Labels Dissent As Terrorism

There are some things that today's multi-dimensional, always-on, super-eagle-eye 4k HD televisual extravanganza will not show. High above the crowds roaring in satisfaction at $2,600 per ticket show, SWAT teams and snipers will be attending Super Bowl XLVIII. The Super Bowl, simply put, is a level one national security event. So, behave yourself; do not chant 'hawks' too loud; don't boo the 'Omahas' too much; but most of all don't worry, since the FBI is watching you - “If you have an active shooter or you have anyone who may have a bomb. Snipers have a better angle then anyone who is on the ground to actually hit that target... you have individuals who are at high altitudes inside the arena and then you have individuals that are on the ground moving in and around the crowd."

While joking about potential terrorist plots is below us, the fact that New Jersey police are investigating the appearance of suspicious white powder at several hotels near the site of the Superbowl was too close to an "Onion" headline for us to ignore. As AP reports, the FBI is investigating the substance (found in envelopes - which we suspect were not marked with player's names). No injuries or overnight bouts of unexplained euphoria have been reported.

So far in 2013, Bank of America lost money on 9 trading days out of a total 188. Statistically, this result is absolutely ridiculous when one considers that the bulk of bank trading revenues are still in the form of prop positions disguised as "flow" trading to evade Volcker which means the only way a bank could make money with near uniform perfection is if it either i) consistently has inside information that it trades on or ii) it consistently front-runs its clients (the latter incidentally was a topic we covered back in 2009 relating to Goldman Sachs, and which the bank sternly rejected). We now know that when it comes to Bank of America at least one of the two happened.

• Emerging market sell-off raises specter of contagion (Reuters)
• China Bank Regulator Said to Issue Alert on Coal Mine Loans (BBG)
• Argentina to Ease FX Controls After Peso Devaluation (BBG)
• Pimco's Gross problem: who can succeed the 'Bond King'? (Reuters)
• Ukraine protesters seize building, put up more barricades (Reuters)
• Mideast Turmoil Dominates Gathering of Business Elite (WSJ)
• Central Banks Withdraw Dollar Funding (WSJ) - oh really?
• Samsung warns of weak earnings growth this quarter (FT)
• Three explosions rock Cairo, killing 5 (USA Today)

When facing a corrupt system, provide for yourself and your community those necessities that the system cannot or will not. Become independent from establishment-controlled paradigms. If you and your community do this, the system will have one of two choices: 1)  Admit that you do not need them anymore and fade into the fog of history, Or... 2)  Reveal its tyrannical nature in full and attempt to force you back into dependence. In either case, the citizenry gains the upper hand. We are hard-pressed to think of a better recent example of the non-participation principle in action than the rise of Mexican citizen militias in the Western state of Michoacan.

The Teleprompter-In-Chief Fails to Impress ...

It would appear that the government, via its mortgage-financing subs Fannie Mae and Freddie Mac, is providing yet another $50 to $100 million fillip to banks - but this time at the expense of their ignorance. As Reuters reports, the FBI is investigating "unsophisticated tradecraft," such as hand signals and special telephone ring tones, that some traders are conspiring to rig rates on large orders submitted by the GSEs - front running them in the interest rate swaps market. Of course, no one is surprised at yet another manipulation or malfeasance but the 'high-level-employee' whistleblower's exposure is perhaps not surprising since the size of 'hedging' orders from the mortgage-managers provides an incentive for front-running ahead of the trades - "GSEs frequently submit large interest-rate swap trades, making them easy targets for front running and lucrative targets for market manipulation."

DEA Agent and Justice Department Official Testify In Court that the U.S. Backed the Sinaloa Drug Cartel Between 2000 and 2012

• House Unveils $1.01 Trillion Measure to Fund Government (BBG)
• Credit Suisse Tells Junior Bankers to Take Saturdays Off (BBG)
• Spot the odd word out: ECB Sees Bad-Debt Rules as Threat to Credible Bank Review (BBG)
• Insert laugh track here: Spain GDP grows at fastest pace in almost six years (FT)
• Scandinavian Debt Crisis Waiting to Happen Puzzles Krugman (BBG)
• Fed Said to Release Plan to Limit Banks’ Commodities Activities (BBG)
• Thai Protesters Extend Blockade After Rejecting Poll Talks (BBG)
• China provinces set lower growth goals for 2014 (BBG)

The following is a firsthand story of how and why a former US citizen - who kindly shared this information on condition of anonymity - decided to renounce his US citizenship

With the FBI joining investigations into the New Jersey Governor's Bridge-Gate scandal (and David Wildstein 'pleading da fif'), it would appear Chris Christie is calling in some favors. Bloomberg TV's Stephanie Ruhle reports this moring that the billionaire money manager Stan Druckenmiller proclaimed, "Governor Christie's actions yesterday reinforces my admiration for him," as he (rightly) pointed out that "the country thirsts for a great leader. A leader's actions in crisis are revealing." Druckenmiller went on to explain in his statement that he "believes Chris Christie is a once-in-a-generation leader... and he is showing essential executive skills as a manager: ensuring accountability and taking responsibility."

It’s NEVER to Protect Us From Bad Guys