The American people are coming to the realization that everything Ron Paul has stood for in the last 40 years is true. He has been proven right regarding the Federal Reserve, the Military Industrial Complex, and the Warfare/Welfare Surveillance State. The American people have grown weary of inflation, wars of choice and being spied upon. Ron Paul’s consistently right message is finally making headway... The corporate media will avoid reporting it. They try their best to ignore Ron Paul’s 30 plus year intellectual march through our institutions. But the facts in Pew Research’s 50 year survey of US views of “America’s place in the world” do not lie: This year the highest percentage of Americans ever — 53 percent — agree with the statement that “the US should mind its own business internationally and let other countries get along the best they can on their own.”
"It’s time to put that power back where it belongs," explains Jonathan Zimmerman in today's Washington Post, "Barack Obama should be allowed to stand for re election just as citizens should be allowed to vote for — or against — him. Anything less diminishes our leaders and ourselves." The 22nd Amendment, limiting the Presidential term, according to Zimmerman, reflected "a shocking lack of faith in the common sense and good judgment of the people." Of course, in the increasingly 'entitled' America, it would only cost a few hundred million to bribe all the newly downgraded Middle-to-Lower class Americans with Obamaphones in order to finally get a "dictatorial democracy" by indirectly funding the lower common denominator with $400 in free money every election cycle.
In addition to the bevy of ugly European unemployment and inflation news just reported, the overnight session had a dollop of more ugly macro data for the algos to kneejerkingly react to and ramp stocks to fresh time highs on. First it was China, where the PBOC did another reverse repo, however this time at a fixed 4.3% rate, 0.2% higher than the Monday iteration and well above the 3%-handle from early October, indicating that China is truly intent on tightening its monetary conditions. Then Japan confirmed that despite the soaring imported food and energy inflation, wages just refuse to rise, and have declined now for nearly 1.5 years. Then, adding core insult to peripheral injury, Germany reported retail sales that missed expectations of a +0.4% print wildly, declining -0.4% from a prior downward revised 0.5% to -0.2%. And so on: more below. However, as usual what does matter is how the market digests the FOMC news, and for now the sense is that the risk of a December taper has risen based on the FOMC statement language, whether warranted or not, which as a result is pushing futures modestly lower following an epic move higher in the month of October on nothing but pure balance sheet and multiple expansion. The big data week in the US rolls on with the highlights being the Chicago PMI and initial jobless claims, which are expected to print their first accurate, non-impaired reading since August.
Charts Show that U.S. Policy Has Increased Terror Attacks
JPMorgan Chase has had a bad year. Not only has the bank just reported its first quarterly loss in more than a decade; it has also agreed to a tentative deal to pay $4 billion to settle claims that it misled the government-sponsored mortgage agencies Fannie Mae and Freddie Mac about the quality of billions of dollars of low-grade mortgages that it sold to them. Other big legal and regulatory costs loom. JPMorgan will bounce back, of course, but its travails have reopened the debate about what to do with banks that are “too big to fail.” We now have a global plan, of sorts, supplemented by various home-grown solutions in the US, the UK, and France, with the possibility of a European plan that would also differ from the others. In testimony to the UK Parliament, Volcker gently observed that “Internationalizing some of the basic regulations [would make] a level playing field. It is obviously not ideal that the US has the Volcker rule and [the UK has] Vickers…” He was surely right, but “too big to fail” is another area in which the initial post-crisis enthusiasm for global solutions has failed. The unfortunate result is an uneven playing field, with incentives for banks to relocate operations, whether geographically or in terms of legal entities. That is not the outcome that the G-20 – or anyone else – sought back in 2009.
UPDATE: *OBAMA SAYS REPUBLICANS MUST SET ASIDE SOME PARTISAN CONCERNS
Senator Harry Reid has a cunning new plan and says "we're getting closer," providing yet more hope that the US won't tip inauspiciously over the edge of the economic abyss. The latest rumored deal proposal, to be presented at the White House meeting at 3pm, includes automatic spending cuts, a framework for budget negotiations, extends the debt ceiling for 6-9 months, and funds the government through December at current sequester levels. Doing so, as AP reports, would punt the fight over whether to lock in 2014 sequestration levels at $967 billion until December. And by extending the debt ceiling until the middle of next year, it would put the issue in the center of the heated 2014 midterm elections. While this provided some short-term optimism, Obama was quick to remind the market that "it appears that has been some progress in the Senate in fiscal impasse negotiations and will see if it is real when he meets congressional leaders."
The situation in DC is fluid, but here is the most coherent narrative so far from NBC Washington DC: "A woman opened fire near the U.S. Capitol after trying to ram her car into the White House gates Thursday afternoon; she was then shot. A U.S. Capitol Police officer was injured in the event, though it is not clear that the officer was shot. The incident began at about 2:30 p.m. at the White House gates at 15th and E streets, NBC News confirmed. The driver tried to ram the gates but failed, and then was pursued by Secret Service. She bailed out of her car near the Capitol building and began shooting, NBC News' Pete Williams reported. Some reports said that as many as 10 to 15 rounds were fired. The injured officer was airlifted to an area hospital. The U.S. Capitol building was on lockdown after the shooting, though that lockdown has now been lifted. Parts of Pennsylvania Avenue are still closed." According to Fox reports the woman was 18 years old and there also a child in the car. The child is said to be unhurt.
Still three-plus years left in Obama’s presidency, where mediocrity has been elevated to a highly acceptable status. A good and intelligent man has proven to be an incapable leader, often by making poor choices in the advice received... However, not all has to be lost for Obama; he still has time to reweave a legacy that now appears grey and bleak. And that reweaving will not be on the domestic front; for the economic future of 80 percent of Americans has already been cast... the slope pointing downward no matter what hopeful lies are manufactured in Washington. Reweaving, for Obama, should take place at the international front; a great opening has appeared before him partly by chance and partly by what other world leaders have to gain as well.
Update: Well, kiss that idea goodbye: GOVERNMENT WILL SHUT DOWN TONIGHT; HOUSE WILL NOT ATTEMPT MORE VOTES TONIGHT, WAPO REPORTS (link)
While it will be supremely ironic if stocks were to soar on the day the US government shuts down (it would be curious to see how Congress would spin that particular "market" reaction to a world without a US government), a ramp in the futures is precisely what is going on. And while there is no definite reason for this market reaction, it is being attributed to two things: first, the House Rules panel announced moments ago it would meet at 10:30 pm on a new spending Bill and are that Republicans are said to seek talks with the Senate on spending. Of course, if the GOP folds in the last moment, it would be Boehner's most epic collapse to date (in a long and illustrious series of humiliations). Which brings us to reason number two: also moments ago, John McCain pretty much threw his colleagues under the bus, saying House Republicans will not "succeed in the end" and that the House will end up sending a clean CR, just as Obama has demanded all along, which in turn has emboldened traders to assume that there is a better than negligible chance the GOP will once again bend over.
Over the past week, many have been scratching their heads over why JPMorgan is so eager to comply with the DOJ's investigation into the banks misrepresentation of the quality of its RMBS bundled mortgages, having gone so far as to suggest a number that could be as large as $4 billion in cash (with a $7 billion non-cash component), though still shy of the DOJ's $20 billion ask. The reason, as the WSJ reports, may be very simple one: a rat is providing the Feds with information deep from within the house of the whale. "The Justice Department's pursuit of possible criminal charges against J.P. Morgan Chase & Co. is based in large part on a key cooperator from inside the bank who is aiding the government and has provided information suggesting the bank vastly overstated the quality of mortgages that were being bundled into securities and sold to investors, according to people familiar with the matter."
"When Pravda.ru editor, Dmitry Sudakov, offered to publish my commentary, he referred to me as "an active anti-Russian politician for many years." I'm sure that isn't the first time Russians have heard me characterized as their antagonist. Since my purpose here is to dispel falsehoods used by Russia's rulers to perpetuate their power and excuse their corruption, let me begin with that untruth. I am not anti-Russian. I am pro-Russian, more pro-Russian than the regime that misrules you today. I make that claim because I respect your dignity and your right to self-determination. I believe you should live according to the dictates of your conscience, not your government. I believe you deserve the opportunity to improve your lives in an economy that is built to last and benefits the many, not just the powerful few. You should be governed by a rule of law that is clear, consistently and impartially enforced and just. I make that claim because I believe the Russian people, no less than Americans, are endowed by our Creator with inalienable rights to life, liberty and the pursuit of happiness..."
The definition of what makes an “enemy” may vary from person to person. But we would say that, generally, an enemy is one who has an active ability to do irreparable harm to you or your essential values. He is motivated by destruction, the destruction of all that you hold dear. He is capable and unrelenting. He is a legitimate threat. He will not compromise. He will not waver. He will do anything to wound you. He will not stop. He is possessed. Americans have spent the better part of a century being told who their enemies are with very little explanation or substantiation. We have blindly rallied around our patriotic prerogative without knowing the root cause of the conflict or the nature of the target we are told to annihilate. We have been suckered into war after war, conjured by international interests in order to lure us into accepting greater centralization and concentrated globalism. As a culture, we're sorry to say, we have been used. We are a tool of unmitigated doom. We are the loaded gun in the hand of the devil. When one applies the above definition of “the enemy” to Syria, one comes away with very little satisfaction. So, the question arises: If Syria is not the real enemy, who is?
McCain Says Take The Deal; Assad Warns It's Obama's Problem: "We'll Do Anything To Prevent Another Crazy War"Submitted by Tyler Durden on 09/09/2013 19:22 -0500
The first clips from Charlie Rose's interview with Assad are being released and given the Russia-Syria discussions, Obama's skepticism, and now John McCain's 'dubious support' for "the US getting on board with Russia's proposal for Syria to hand over its chemical weapons," we thought this brief view of Assad's response was telling...
Perhaps the 77 year-old republican senator should stick to online poker. Because if the war hawk was in charge of US foreign policy, World War III would be a distant memory. Courtesy of The Burning Platform, the chart below lists of countries where John McCain has not called for military intervention. It is, in a word, large.
Who Is Going To Buy The US Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?Submitted by Tyler Durden on 09/07/2013 14:51 -0500
Yesterday we implied a difficult question when we illustrated the huge size of US Treasury bond holdings that China and Russia have between them - accounting for 25% of all foreign held debt - implicitly funding US standards of living (along with the Federal Reserve). The difficult question is "Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills?" What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own? If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria.