New Normal

Yuantervention Extreme - Offshore Yuan Explodes 850 Pips Higher, Biggest Jump Ever

While some central banks prefer to stealthily 'manage' their markets, a bid here, a stick-save there, today's epic intervention, short-squeeze, carry-trade-carnage in Offshore Yuan is the most visible hand yet in the new normal world of central planning. USDCNH is now down over 850 pips on the day - a record 1.25% strengthening in the offshore Yuan...

China Warns No "V-Shaped" Recovery Is Coming; Says "There Will Be No Strong Economic Stimulus"

Maybe because not enough people caught the dire warning the first time, moments ago Bloomberg reported that Han Jun, the deputy director of China’s office of the central leading group for financial and economic afairs, spoke at an event at the Chinese consulate in New York and practically reiterated the anonymous source's warning practically verbatim. To wit: "There won’t be a strong economic stimulus and people shouldn’t expect a V-shape recovery; instead long period of L-shape growth path is likely" said Han, who participated in the drafting of China’s latest five year plan.

The Bankers' India Gold Grab: An Update

In the eyes of Western bankers, it was the perfect “scheme” – hence their label for the plan. In the eyes of any sane, rational, human being, it was/is the most naked, clumsy fraud that one could possibly imagine. But the corporate media assured us there was considerable enthusiasm amongst India’s population for this scam. However, in two weeks, out of a population of more than one billion people, holding an estimated 40 million pounds of gold, the Conspirators managed to steal less than 0.000002% of India’s privately held gold. So we’re now told that India’s government sees “temple gold” as its best/easiest target for stealing.

The Tragicomedy Of Self-Defeating Monetary Policy

Bill Dudley and the Federal Reserve (Fed), in their efforts to influence economic growth may have created a speculative and consumption driven environment that is crushing productivity growth. Ingenuity, not debt, made America an economic powerhouse. If we are to resume down that path we need the Fed to end their “self-defeating” policies and in its place we must demand ingenuity from them. The Fed, along with government, needs to properly incent productivity. The Fed should start this arduous task by removing excessive stimulus which will take the speculative fervor out of markets and allow asset bubbles to deflate.

Is 2016 The Year Of The Dollar Collapse?

"In America, the idea is that if you work hard and play by the rules, you’ll be rewarded with a good life for yourself and a better chance for your children.” That’s what America used to stand for, and indeed much of the Western world. Freedom. Truth. Hard work and fair play. Building a better life. But those ideals have all but faded now, displaced by a new normal of war, debt, government surveillance, freedom-killing bureaucracy, and a monetary policy that decimates responsible, hard-working people for the benefit of a tiny elite.

Atlanta Fed Just Slashed Q4 GDP Forecast To Barely Positive 0.7%, Down 1.2% In Ten Days

Moments ago, in its latest Q4 GDP revision, the Atlanta Fed just pulled the rug from under the economy (and the market now that bad news for the economy is bad news for stocks), and slashed its latest quarterly forecast by another 50%, from 1.3% to a barely positive 0.7%.  In other words, according to the Atlanta Fed, Janet Yellen launched a rate hike cycle in a quarter when GDP will be just 0.7%, and which when averaged across the prior 3 quarters, would mean that the US will have grown at just 1.8% in 2015, a 25% drop from the 2.4% GDP growth in 2014.

2015 Greatest Hits: Presenting The Most Popular Posts Of The Past Year

The seventh anniversary of Zero Hedge is just around the corner, and so, for the seventh year in a row we continue our tradition of summarizing what our readers found to be the most relevant, exciting, and actionable news of the year, determined by the number of page views. We bring you the articles that you, dear reader, found to be the most interesting in the past 365 days.

The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels

Banks have finally woken up to the risk their billions in C&I loans issued to fund "financial engineering" are exposed to. The reaction: an unprecedented surge in loan collateralization, with the percent of total loans secured by collateral soaring by nearly 50% in the past quarter to a record 55.9%, the highest ever!

Washington's "Empire Of Chaos" & The Cold War 2.0 'New Normal'

It’s all here: unilateral Exceptionalistan in action against anyone who dares to defy imperial diktats. From Ukraine to Syria, and all across MENA (Middle East and North Africa), the proxy war between Washington and Moscow, with higher and higher stakes, won’t abate. Imperial despair over the irreversible Chinese ascent also won’t abate. As the New Great Game picks up speed, and Russia supplies Eurasian powers Iran, China and India with missile defense systems beyond anything the West has, get used to the new normal; Cold War 2.0 between Washington and Beijing-Moscow.

The World Economy Explained With Two Cows: New Normal Edition

'Keep It Simple Stupid' is the underlying narrative of the "two cows explain economics" meme... but, in light of the 'new normal' reality unleashed by ever-intervening central planners, some of the key political, economic, and corporate systems needed a re-work...

Peak "Office Space"

With the unprecedented surge in unicorns and incessant faith in the ever-increasing productivity of a globalization-crushed American worker, it is perhaps a surprise that the "office space" provided to the intellectual capital-providing, wage-stagnating middle-American, has never been smaller...