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China's $9 Trillion Shadow Banking System Shrinks For The First Time In 9 Months

For the first time in 9 months China's $9 trillion Shadow Banking Industry - defined as the sum of Trust Loans, Entrusted Loans and Undiscounted Bank Loans - contracted, which begs the question: will the biggest deleveraging ever attempted in Chinese history be smooth and contained, or lead to another financial crisis?

Beware The Ides Of October...

"We are are waiting for Mr. October to step up and knock the risk markets for a loop, however, resulting in a nice fall correction (pun intended).  We believe many factors will be converging  by then, including..."

Moscow, Baghdad Sign Huge Arms Deal

The US still has large influence in Iraq but it does not own it. The impressive performance of Russian weapons in Syria makes them in high demand among the countries facing the terrorist threat. The tank deal between Russia and Iraq reflects the trend.

JPMorgan Lists Five "Red Flags" That Point To A 10% Downside Correction

"US growth momentum has turned mixed, with a rollover in manufacturing indicators, credit, housing and car sales. US CESI is in negative territory, which was typically associated with more defensive market leadership. CESI has a good correlation with the S&P500  and points to 10%+ downside for stocks."

Moving Closer To The Precipice

Slowing money supply and credit growth and historically extremely high stock market valuations far more often than not turn out to be uneasy bedfellows. In fact, usually the latter will eventually fall out of bed. Circumspection remains advisable.

China's Plan To Subvert The Global Dollar Standard

The instability brought into the geopolitical equation by the Trump presidency, and the early signs the US economy is grinding to a halt under the sheer weight of consumer and government debt, are increasingly likely to prompt China and Russia into firm financial action, if only to protect themselves in an unstable financial and monetary environment.

'Reflation' In Danger Due To Low Liquidity

The poorer liquidity backdrop for broad and narrow money will represent a headwind to economic growth, risk assets and specifically bank stocks, which we recommend as shorts...

Euro Spikes On Upbeat Draghi Comments, Then Drops On Muted Inflation Outlook

Well that didn't last long:moments after the EUR spiked on Draghi's upbeat economic comments, it has since filled the entire gap and is back to session lows after Draghi talked down Eurozone inflation saying there is no sufficient evidence to alter inflation outlook, and no evidence of a self-sustaining inflation move.

French Selection Ritual, Round Two: Slightly Premature Victory Laps

There is no political constituency for liberty or anything remotely resembling classical liberalism (= libertarianism) in France.I t is clearly time to once again focus on the only thing that one can actually hope for in politicians, and that is entertainment value; luckily we have good news on that front.

India: "No Toilets, But We'll Send Rockets Into Space"

"The worst losers were the poorest people of the country, who are lucky if they have a toilet. 50% of Indians still relieve themselves out in the open... These hungry people have indeed been asked to celebrate that India has recently sent more than 100 satellites into space in a single launch..."

Schlichter: President Trump Needs To Keep His Promises No Matter What

"This much is clear - if President Trump fails to keep his word, he’s toast. And he should be - we’ve spent decades being lied to, bamboozled, and swindled by both fork-tongued liberals and fake 'conservatives'...There’s no more slack to give; we’re done with leeway and wiggle room. The president has two choices: Keep his promises, or fail disastrously."