Google

• China stocks resume sharp slide as economic worries mount (Reuters)
• OECD head says sees further cut to global growth forecasts (Reuters)
• The U.S. Dollar Is Gaining Like It's the 1980s — For Better or Worse (BBG)
• Glencore Slumps to Record Low, Erasing Gains Since Debt Plan (BBG)
• Woman killed, 400 homes destroyed by California wildfire (Reuters)
• Why Morning Is the Worst Time to Trade Stocks (WSJ)
• German Investor Confidence Damped by Weaker Emerging Markets (BBG)

• China stocks slide as data raises fresh economy worries (Reuters)
• Was Tom Hayes Running the Biggest Financial Conspiracy in History? (BBG)
• The Fed’s Policy Mechanics Retool for a Rise in Interest Rates (NYT)
• Germany re-imposes border controls to slow migrant arrivals (Reuters)
• Thousands flee California wildfire as homes go up in flames (Reuters)
• Bavarian minister says German border controls could last for weeks (Reuters)
• China sells record FX in August, shows pressure after devaluation (Reuters)

We Americans are in something approaching complete denial about how truly horrible our nation’s recent impact on the rest of the world has been. We are universally hated, even by those who have their hands out to receive their Danegeld, and the world is undoubtedly shaking its head as it listens to the bile coming out of the mouths of our presidential candidates. Shakespeare observed that the “evil that men do lives after them,” but he had no experience of the United States.

News That Matters

Late last year, Paul Krugman took a field trip to Japan to observe Keynesian insanity prowling around in its natural habitat. While he was there, he gave Prime Minister Shinzo Abe some sage advice which can be roughly summarized as follows: "Abenomics is working so why would you screw it up by getting fiscally responsible all of the sudden?" Nine months later, Japan is still a deflationary deathtrap and Krugman is "really, really worried"...

Ironic, because it is precisely CNBC's constant cheerleading of what little viewers it had left that pushed the market to such nosebleed levels that on August 24 it suffered its second flash crash in just five years. It is even more ironic, because instead of a rational, objective coverage of the newsflow, the constant stream of cherry-picked, double seasonally adjusted good news is precisely why viewers had left the Comcast cable station in droves realizing the disconnect between the economy and stocks is simply too gargantuan to stomach, and that they are being lied to.  As a result, it wasn't until the much dreaded market crash that viewers finally came back. At least some of them.

Forget nuclear facility sabotage; ignore stock market glitches; the world of cyber-threats just got serious. As The Telegraph reports, an Android app virus seduces users by promising porn but takes compromising photos of them to use as blackmail. The 'ransomware' demands a ransom of $500 (paid via PayPal) and warns "your device has been blocked for safety reasons listed below. All your files are encrypted. You are accused of viewing/storage and/or dissemination of banned pornography." Given the populist rhetoric among the presidential candidates (and urge for the younger demographic's vote), this would seem like a slam-dunk for any administration's cyber-crime unit.

The current refugee crisis is not an EU problem, but rather "a German problem," according to Hungary's Prime Minister Viktor Orban as his nation's borders are swamped with foreigners seeking to travel on to Germany. "People in Europe are full of fear because they see that the European leaders are not able to control the situation," he exclaimed after a meeting with EU President Schultz. He is right, of course, as we detailed here and here, but the sheer scale of the tragedy is worst than many could imagine. Orban defended his decision to erect a fence along its southern border with Serbia, saying: "we don’t do this for fun, but because it is necessary," adding rather pointedly that his country was being "overrun" with refugees, most of whom, according to the prime minister, were not Christians.

Understand this now. As Jim Quinn explains, YOU are the enemy of the state. They don’t give a stuff about you. They treat you as sheep and cows to be sheared and milked. If you start questioning them, they will slaughter you. They have militarized the police forces and put you under 24 hour surveillance because they fear an uprising. There only a few hundred thousand of them and there are millions of us. A conflict is looming.

Europe's refugee crisis just took a dramatic turn for the worse, and strikes at the very hear of Europe's Shengen customs union which has allowed borderless travel within Europe for decades. As Bloomberg reports, the Italian Province of Bolzano in Northern Italy said in a statement that it agreed with the Italian government on request by German Federal State of Bavaria by "communicating a willingness to restore border controls at Brenner and temporarily suspend the Schengen agreement."

• Markets on edge as policymakers flex muscles (Reuters)
• European shares recover from rough ride (Reuters)
• For Stock Markets, the Moment When Humans Matter (WSJ)
• Puerto Rico's PREPA, bondholders have framework for deal (Reuters)
• Hundreds of migrants protest at Budapest station, want to go to Germany (Reuters)
• New Whale Seen Moving Tokyo Markets (BBG)

News That Matters

"It is estimated that sub-Saharan Africa will have 900 million more inhabitants in the next twenty years. Of these, at least 200 million are young people looking for work. The chaos of their countries of origin will push them further north." That is the future. It will no more go away by itself, and by ignoring it, than the present crisis, which, devastating as it may be, pales in comparison. Europe risks being overrun in the next two decades.

• Hilsenrath: Fed Appears to Hold Line on Rate Plan (WSJ)
• Europe, Asia stocks set for worst monthly drop in three years on China, Fed (Reuters)
• Beijing abandons large-scale share purchases (FT), if only for a few hours
• China’s Next Problem: Paying for Its Stock-Market Bailout (WSJ)
• Crises Put First Dents in Xi Jinping’s Power (WSJ)
• Man Group’s China Chief Said to Assist Police in Probe (BBG)