Mexico

Secession:  Exploding Movement, Tempest In a Teapot … Or Something Else?

Presented with little comment since whatever we say would likely be superfluous to this all-encompassing speech. The full Ron Paul 'Farewell to Congress' speech and transcript.

...To achieve liberty and peace, two powerful human emotions have to be overcome.  Number one is 'envy' which leads to hate and class warfare.  Number two is 'intolerance' which leads to bigoted and judgmental policies.  These emotions must be replaced with a much better understanding of love, compassion, tolerance and free market economics. Freedom, when understood, brings people together. When tried, freedom is popular.

 

The best chance for achieving peace and prosperity, for the maximum number of people world-wide, is to pursue the cause of LIBERTY...

If nothing else, read the five greatest dangers that the American people face today that impede the goal of a free society.

• The Bild is now a source for EURUSD stop hunts: Germany eyes 'bundled' loan payment to Greece-paper (Reuters, Bloomberg)
• Congress comes back Tuesday to confront “fiscal cliff.”  (Reuters)
• Gen. John Allen ensnared in Petraeus scandal (Politico)
• FBI Agent in Petraeus Case Under Scrutiny (WSJ)
• Comcast's NBCUniversal unit lays off 500 employees (Reuters)
• University Fees Stoke U.K. Inflation (WSJ)
• Consumers Closing Wallets in Japan Add to Noda’s Woes (Bloomberg)
• John McAfee Wanted for Murder... and explaining bathsalt anal suppositories (Gizmodo)
• Europe Gives Greece 2 More Years to Reach Deficit Targets (Bloomberg)
• Where Spain Is Worse Than Greece (WSJ)
• Microsoft's Windows unit head, once a possible CEO, exits (Reuters)
• Glitch stops NYSE trading in 216 companies (FT)
• Large European Banks Stash Cash (WSJ)
• The death of San Bernardino: How a vicious circle of self-interest sank California city (Reuters)
• Apple stores most productive US shops (FT)
• Treasuries See U.S. Falling Over Cliff as Yields Converge (Bloomberg)
• Bra-Bodysuits Make H&M One Hit Wonder as Zara Prospers (Bloomberg)

Many Americans voted for “the lesser of two evils” and were disappointed in the result.  This must have been an emotional double whammy in the sense that not only did the guy you disliked so much that you were willing to vote for a candidate you didn’t like win, but you didn’t vote your conscience. What allowed Mike Krieger to do this was the complete and total recognition that under both major candidates America loses. His major issues are:

1. The Federal Reserve scam and Wall Street theft.
2. Civil liberties and the destruction of the Constitution.
3. Our aggressive foreign policy and imperial wars abroad that help only the oligarchs and impoverish the masses.

The country has cancer, not a common cold, and our response therefore must be much more serious than either of these corporate candidates are willing to commit to. Unfortunately, it will get ten times worse in the coming years, and we strongly believe that 2013-2016 will be a historic period in the political transformation of the United States.  The show is over.  It’s time to buckle up.

The upcoming week comes less loaded with policy events. The only major one is the Eurogroup meeting on Monday, however EU officials have already confirmed that no decision on the next Greek aid tranche will be made before the Troika’s next report on Greece’s adherence to the bailout conditions. Greece has scheduled an auction for Tuesday in order to roll over €3.1 bn in T-bills expiring by the end of the week. Additionally, in the US, the President has invited leadership of both parties for a first round of talks on the fiscal cliff. The data calendars also look lighter, with the publication of the FOMC minutes on Wednesday, and US Philly Fed on Thursday.

Does China have what it takes to get from here (industrialized export economy) to there (sustainable growth, widespread prosperity)? The same can be asked of every nation: do they have what it takes to move beyond their current limitations to the next level? Consider corruption. Corruption isn't just a "values" issue: corrupt societies have corrupt economies, and these economies are severely limited by that corruption. A deeply, pervasively corrupt economy cannot get from here to there. Corruption acts as a "tax" on the economy, siphoning money from the productive to the parasitic unproductive Elites skimming the bribes, payoffs, protection money, unofficial "fees," etc. By definition, the money skimmed by corruption reduces the disposable income of households and enterprises, reducing their consumption and investment... Pull aside the curtain and what you find is a China crippled by corruption and debt.

There was one election outcome yesterday that few noticed, judging by mainstream media. We are referring to Colorado’s Amendment 64, which regulates marijuana in a similar manner to alcohol.  It is basically full legalization of pot for adults over 21. It’s interesting that the two states to legalize marijuana both voted for Obama in this election.  Will he now betray all these faithful voters?  Based on his first term performance, you can count on it.  Your move Mr. Holder.

Rampant Evidence of Electronic Vote Tampering

Today doesn't matter. Tomorrow won't matter either. 

• Obama and Romney Deadlocked, Polls Show (WSJ)
• NYC Commuter Week Faces Uncharted Ground as Storm Brews (Bloomberg)
• New York region struggles to move on a week after Sandy (Reuters)
• Europe's Bank Reviews Collateral (WSJ)
• Less circuses to pay for the bread? Time Warner Cable misses on falling demand (Reuters)
• Spanish unemployment total jumps by 128,242 as recession continues to take its toll on economy (Independent)
• Goldman Sachs Partner List Drops 31 Since February, Filing Shows (Bloomberg)
• China's mission impossible - a date for Hu's military handover (Reuters)
• German-Iranian trade booming (Jerusalem Post)
• Russia supplying arms to Syria under old contracts: Lavrov (Reuters)
• Russia endorses Egyptian-led regional group on Syria (Reuters)
• Election Winner Must Win Over Wall Street (Bloomberg)
• On Google, a Political Mystery That's All Numbers (WSJ)
• Richard Koo: explain to Americans why $22 trillion in debt in 4 years is good for them.. or something (FT)

The following is a list of key events (and commentary) to watch over the next two months. From Germany's voting phases for Greek aid to various national strikes and regional elections, there's plenty here of critical importance to the future of the sovereign debt crisis.

The number of people in Greece classified as living below the poverty line reached 2.34 million (or over 20% of their 11.3 million population). Ekathimerini reports that the Hellenic Statistical Authority (ELSTAT) has released data from 2010, the first update of this frightful data series post austerity measures. Household spending has dropped dramatically in the two years since then suggesting the current picture is considerably worse. Still, comparing apples to slightly smaller apples, CIA data shows Greece now considerably more impoverished than Iran, Bosnia and Herzegovina, Mexico, and the West Bank. The EUR6,591 per annum poverty line in Greece compares to average per capita income of EUR12,637 but what is perhaps most worrisome - as social unrest continues to rise - is that Greece is among the European countries with the greatest financial inequalities, as the richest 20% of the population had an annual income that was six times that of the poorest 20%.

As we enter the North American session, equity markets are seen marginally higher, as concerns over the never-ending Greek debt drama are offset by the release of an encouraging data from China. Chinese HSBC Manufacturing PMI printed a fresh 8-month high, while the official Chinese Manufacturing PMI came in line with expectations. In addition to that, a state researcher has said that the countries economy has bottomed and is stabilizing. Meanwhile in Greece, the fact that debt is now seen climbing to 192% in 2014 and an agreement on how to defuse the situation has yet to be found may lead to another speculative attack not only on Greek paper, but also other southern states. As a result, GR/GE 10s spread is seen wider by 30bps, however other peripheral bond yield spreads with respect to the German Bund are tighter. The second half of the session sees the release of the latest weekly jobs report, consumer confidence and the weekly DoE from the US.

It was a week ago when we first observed that the defense of 1400 in the ES at all costs must go on, or else the only thing that is keeping the market propped up - psychology (now with the AAPL euphoria long gone), would be gone as would all support. But once again, the overnight session has proven that, with a little help from its central banking friends, 1400 (and 1.2900 in the EURUSD) can be defended. This was in danger of being breached until China reported two PMI numbers: an official one which printed at 50.2, or modest expansion, and up from 49.8, magically right on top of expectations of 50.2, and the HSBC PMI, which also rose to 49.5, from 47.9: the 12th straight contraction print, but the highest number in 8 months. The market spin is naturally that this is an indication of a rebounding China. Sadly, just like in the US, this is merely pre-party congress data manipulation. The only thing that does matter out of China: whether or not the country will actually ease as opposed to doing day to day reverse repo injections. Without the former, the Chinese economy will not rebound, and will not lead to an improvement in corporate outlook for US tech stocks, period, the end.

A cyber attack does not have to be limited to a single country and its networks.  It could be used to strike multiple countries and fuel a global firestorm of systems failures.  Globalists need a macro-crisis, a world-wide catastrophe, in order to present their “global solution” to the desperate masses. This solution will invariably include more dominance for them, and less freedom for us.  A global crisis can also be used to manipulate various cultures to forget concerns of sovereignty and think in terms of one-world action.  Surely, a worldwide breakdown can only be solved if we “all work together and all think alike”, right...? Without a doubt, a cyber attack serves the interests of elitist entities and banking monstrosities like nothing else in existence.  Set off a nuke, start WWIII, turn the U.S. dollar into stagflationary dust; a cyber attack tops them all, because a cyber attack can lead to them all while maintaining deniability for the establishment.  The fact that whispers of cyber threats have turned into bullhorn blasted propaganda should concern us all.  Are we being conditioned for a cyber event in the near future?  That remains to be seen.  However, none of us should be surprised if one does occur, especially in light of the many gains involved for globalists, and all of us should be ready to dismantle and expose any lies surrounding the event before the American public is whipped into a 9/11 style frenzy yet again