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Delaware Has One Billion Reasons Not To Change Its Laws Of Incorporation

In the aftermath of the Panama Papers scandal, one topic that will only continue to receive attention as this topic moves along, is the state of Delaware and its perceived status as a U.S. tax shelter. According to Bloomberg, the state has about 1.1 million business entities, and one single building located at Wilmington's 1209 Orange Street is the home address of 285,000 companies including Alphabet (Google), Ford Motor Co., and Wal-Mart. However, as pressure from mounts from the outside asking Delaware to reform some of its laws around incorporation and business in general, there is one good reason why the state will choose to leave everything at the status quo if at all possible.

With Tech Tanking, Can Anything Save The System?

The big questions are: 1) Can an economy grow when its banks, energy companies and tech giants are all losing ground? 2) Can a hyper-leveraged global financial system survive if its main economies can’t grow? The answer to both questions is almost certainly “no.”

Computer Virus Discovered In German Nuclear Power Plant

Remember when "someone" used the Stuxnet virus in an Iranian nuclear plant several years ago to freeze Iranian nuclear production, leading to a major diplomatic scandal involving the spy agencies of both the US and Israel, as the world learned that in the present day industrial sabotage only needed a flash drive and a computer virus to render even the most sophisticated piece of industrial machinery obsolete? Well, a few minutes ago, Bloomberg reported that a computer virus was discovered in a German nuclear power plant.

Frontrunning: April 25

  • Obama sending more forces to Syria to consolidate gains against Islamic State (Reuters)
  • Global stocks, dollar stumble ahead of Fed, BOJ meetings (Reuters)
  • The Rise and Deadly Fall of Islamic State’s Oil Tycoon (WSJ)
  • Oil Producers Lock In Once-Snubbed Prices (WSJ)
  • Yellen's Scope for Summer Rate Hike Widens as ECB Signals a Hold (BBG)
  • 11,000 jobs at risk as BHS teeters on brink (The Times)

Futures Rebound Off Lows Following Chinese Intervention; Oil Dips Ahead Of Fed, BOJ

Futures are currently unchanged, but the E-mini was down as much as 12 points less than two hours earlier after the European open when this time it was up to the PBOC to intervene in global markets by pushing the Yuan higher (selling USDCNY via intermediary banks) sending global stocks sharply higher off session lows and leaving the S&P futures virtually unchanged. As Bloomberg reported, there has been increasing USD/CNY selling in afternoon session as Dollar Index edged lower. This is the PBOC entering the building and levitating stocks.

Switzerland Readies Military In Preparation For A New Wave Of Migrants

Just 4 months after Swiss army chief André Blattmann warned the risks of social unrest in Europe are soaring and advised the Swiss people to arm themselves, Switzerland is escalating its military preparedness. In response to Balkan countries closing down traditional migrant routes to Europe, Switzerland's military is taking steps to prepare for a potential new wave of immigrants in case it becomes part of a new route. As such, the neutral nation has put together a formal emergency preparedness plan, which outlines three scenarios, one of which would call for significant military intervention.

CEOs Are Hopeful But "Looking For A Macro Curveball"

It's not just Halliburton ("What we are experiencing today is far beyond headwinds; it is unsustainable") and Intel (12,000 layoffs amid re-evaluation of programs) that are facing up to a new normal very different from expectations. As Avondale Asset Management notes, having poured over 100s of earnings transcripts, while most CEOs don’t see signs of an imminent downturn, the environment still feels a little fragile. It seems that almost everyone is on high alert for a macro curve-ball...

Towards A 'Google World Order'?

"It's a relationship that bears watching." Government watchdogs and outside experts have long warned that Google had unprecedented and unfiltered access to the Obama White House, which has been a major beneficiary of Google’s massive campaign coffers. Now, for the first time, two key parts of that entangled relationship, the extensive White House visits and revolving door between Google and the Obama administration, have been documented...

Frontrunning: April 21

  • World stocks gain along with oil, clock ticks down to ECB (Reuters)
  • Draghi Expected to Defend ECB in Face of German Criticism (WSJ)
  • Trump, Cruz, Kasich seek to win over Republican leaders at party meeting (Reuters)
  • Donald Trump Plans to Adopt More-Traditional Campaign Tactics (WSJ)
  • Japan, Not Germany, Leads World in Negative-Yield Bonds (BBG)

Frontrunning: April 20

  • After big New York wins, Trump and Clinton cast themselves as inevitable (Reuters)
  • Eastern States Take Turn in Presidential Primary Spotlight (WSJ)
  • China's Stocks Tumble Most in Seven Weeks to Break Trading Calm (BBG)
  • Oil falls on end to Kuwaiti strike, supply outlook (Reuters)
  • Oil price's decline weighs on global stock markets (Reuters)

Kuwait Oil Workers Strike Over; Oil Tumbles

The catalyst that moved oil prices higher over the past two days, and which had overriden the "bad news" from the Doha talks failure, was the Kuwait oil workers strike announced over the weekend and which resulted in up to 1.6mmb/d in production being taken offline. As of moments ago, however, according to Kuwait's Aljarida press website, the strike is now over.

Frontrunning: April 19

  • Early Warning Signs of Recession Flash Faintly in U.S. Jobs Data (BBG)
  • Who Needs Buybacks? One S&P 500 Variant Just Rallied to a Record (BBG)
  • The unpredictable new voice of Saudi oil (FT)
  • Saudi's Other Warning Makes Oil Traders Sweat After Doha Failure (BBG)
  • U.S. oil investors rush for protection at $35 as Doha talks collapse (Reuters)
  • Trump candidacy: Where some fear to tread others see a path to victory (Reuters)

"War, Confiscation Or Redistribution" - An Anecdote On Systemic Reset

"People work in order to convert their time into a unit of account,” he said. “We call that money, and it’s an invention that allows us to store time.”

The problem that we face now is that there is simply too much time that’s been saved. Another way of saying it is that there’s too much capital in the world, in too few hands.”

Bundesbank Defies Elites: Warns That "Plans To Abolish, Criminalize Cash Out Of Line With Freedom"

With everyone from ivory tower academics to sin-street hookers proclaiming the need for and benefits of a "war on cash" to save the world from criminals and tax-evaders (oh yeah and to stop NIRP-driven savers from hording cash and crushing central planners' dreams), it is perhaps shocking that Bundesbank board member Carl-Ludwig Thiele warned at an event this week that the attempt to abolish and criminalize cash is out of line with freedom. He said that citizens should continue to decide how and in what form they want to use their money.