The Bundesbank, Germany’s powerful central bank, announced very publicly this morning the further repatriation of some of it’s gold being held in foreign locations – namely in Paris and New York with the Bank of France and the Federal Reserve.
Market Wrap: Chinese Stocks Crash As Financials Suffer Record Drop; Commodities Resume Decline; US ClosedSubmitted by Tyler Durden on 01/19/2015 07:12 -0500
Following last week's Swiss stock market massacre as a result of a central bank shocker, and last night's crack down by Chinese authorities, it almost appears as if the global powers are doing what they can to orchestrated a smooth, painless (as much as possible) bubble deflation. If so, what Draghi reveals in a few days may truly come as a surprise to all those- pretty much everyone - who anticipate a €500 billion QE announcement on Thursday.
The rumors of Russia selling its gold reserves, it is now clear, were greatly exaggerated as not only did Putin not sell, Russian gold reserves rose by their largest amount in six months in December to just over $46 billion (near the highest since April 2013). There is another trend that also continues for the Russians - that of reducing their exposure to US Treasury debt.
There are more important factors than merely looking at the total size of the QE program that is apparently coming next week from the ECB. the greatest probability in my opinion, and the only way we believe Draghi can retain enough votes, is for the Council to reject risk sharing (as suggested in the Der Spiegel article). This means QE will be implemented by the National Central Banks who would be responsible for the purchasing of their own debt. We believe this structure is of critical importance, because unlike other ‘bail-out’ structures, such an action is anti-integration. It would be a step back-ward; a step away from being a union.
Self-government is the gift our founding fathers made possible and out of lack of respect for the sacrifices of the past, the constitutional rights of the present and the freedoms of future Americans we allow it to be traded for a comfortable existence. We must stop and truly understand the concept of self-government as it was meant to be and then mentally reconcile that with the current state of our government. We are parented not represented. We are enslaved with encroaching laws that are demeaning to rational self sufficient adults. And by a legislative body that feeds from our bosom, fights with our fists and has buried us in debt to a foreign body who they sold the rights to our currency. How is this in any way a self-governed society? We have been captured by a group of fraudulent citizens who control our money, our military and have desecrated our constitution.
Today, the "developed nation" hecklers are deathly silent after what may be the biggest western central bank faux pas in recent history, and which has - perhaps for the first time in history - manifested in lines of people in front of currency exchange bureaus nowhere else but in that bastion of capitalism: Geneva.
"It's Carnage" - Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds CrushedSubmitted by Tyler Durden on 01/15/2015 06:07 -0500
Over a decade ago, George Soros took on the Bank of England, and won. Less than two hours ago the Swiss National Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more. What happened next was truly shock and awe as algo after algo saw their EURCHF 1.1999 stops hit, and moments thereafter the EURCHF pair crashed to less then 0.75, margining out virtually every single long EURCHF position, before finally rebounding to a level just above 1.00, which is where it was trading just before the SNB instituted the currency floor over three years ago.
The French are disarmed and utterly socialized. Millions of them march in Paris in a display of solidarity, but solidarity behind what solution? Even more government; the same government that created the problem in the first place? Even more centralization? The globalization of despotic security policies? The French have dug their grave, and now they are going to have to lie down in it. Americans do not have to follow the same path. We do not need more government. We do not need more surveillance, more police militarization or more troops on the streets. Make no mistake, many illusions are about to be shattered. You can be caught up in the storm as a helpless spectator and victim or you can become a barrier.
In all the drama over the recent terrorist events in France, Americans almost forgot that there is evil, pure, concentrated evil, as opposed to CentCom Twitter account hacking evil, in their own backyard and only the government can possibly protect them from it. Sure enough, what better way to remind them of just this than to merge a deranged lunatic, bombs, ISIS, and an attack on DC all into one. That is precisely what ABC blasted about an hour ago, when it reported that the FBI had arrested an Ohio man (different from the one who wanted to kill John Boehner) for plotting an Islamic State-inspired attack on U.S. Capitol, where he hoped to set off series of bombs aimed at lawmakers whom he allegedly considered enemies.
Thing is, that whole line about how lower oil prices were going to be a boost for our economies was ignorant from the start. And there’s still plenty people believing just that. That may explain those EU stock exchange gains. That sort of thing all comes from people who don’t understand to what extent oil is pivotal to our societies. We’re not in 2008 anymore, when an oil price drop actually helped us crawl out of a tight spot. We’re $50 trillion down the road, and there won’t be another $50 trillion, or another road. For all intents and purposes, we are the center today, and we cannot hold this way.
"As for the blessed Battle of Paris, we ... claim responsibility for this operation as vengeance for the Messenger of God," said Nasser bin Ali al-Ansi, a leader of the Yemeni branch of al Qaeda (AQAP) in a video recording posted on YouTube. As Reuters reports, this was the first time that a group officially claimed responsibility for the attack. The group also mocked the 'unity' rally in Paris on Sunday, saying the shock on display showed feebleness: "look at how they gathered, rallied and supported each other; strengthening their weakness and dressing their wounds," it said of Western leaders who attended the event.
'After two days of sharp intraday and vicious reversals, the BTFD algos are suspiciously missing overnight, when as reported earlier, a bout of margin calls and stop loss selling meant not crude but copper would crash in today's episode of "guess the crashing commodity", on what Goldman dubbed a Chinese demand collapse which for those confused is different than an OPEC supply glut, and is also the reason why the entire commodity complex is trading at a decade plus low. As a result copper plunged to a five and a half year low, in the process halting the market due to the severity of the plunge. But the big event overnight was the farcical announcement by the European top court, which as everyone expected, rejected the German rejection of the OMT as illegal, stating it was not only legal (with certain conditions) but greenlighting the way for the ECB's QE in one week, a move which sent the EURUSD crashing to a fresh 9 year low!
Do you know what an “extremist” is? In the wake of the horrible terror attacks on the offices of Charlie Hebdo in France, Barack Obama is speaking very boldly about the need to win the war against “extremists”, and he has announced plans to host a major global summit on “extremism” next month. And on the surface that sounds great. But precisely how are we supposed to determine whether someone is an “extremist” or not? What criteria should we use?
In comparing pre-collapse USSR to Russia today, commentators and analysts showcase their ignorance. Recent events, such as the overthrow of the government in Ukraine, the secession of Crimea and its decision to join the Russian Federation, the subsequent military campaign against civilians in Eastern Ukraine, western sanctions against Russia, and, most recently, the attack on the ruble, have caused a certain phase transition to occur within Russian society, which, I believe, is very poorly, if at all, understood in the west. This lack of understanding puts Europe at a significant disadvantage in being able to negotiate an end to this crisis.