Continuing to play Obama like a fiddle, the Snowden revelations have done more to change US foreign policy in a few short months, than all laws passed since the advent of the Patriot Act. In the latest example of just this, moments ago, USA Today first and the WSJ and others subsequently, reported that according to Dianne Feinstein, chair of the Senate Intelligence Committee and an NSA supporter, the National Security Agency has stopped gathering intelligence on allied political leaders, a practice that has drawn global criticism. "The White House has informed me that collection on our allies will not continue, which I support," according to Feinstein. It was not immediately clear if this is an implicit admission that the White House actually did know about the NSA's spying on foreign leaders over the past decade, and lied about being unaware. Recall that Obama denied just this last night, but at this point the pit of lies is so deep, few actually care or are keeping track.
In the paradoxical New Normal media world in which the legacy creators of original content (even if most of it is designed to suit a specific agenda) are hopelessly burning cash at an ever faster pace, while those who (at least for the time being) are profitable and cater to the "social network crowd" do so on the backs of kittens, slideshows and headlines designed to attract the lowest common denominator, what is one to do? One suggestion, as the following XKCD table shows, is to rewrite history, while focusing on the only thing that matters: trolling for reads, bobbing for CPM and clickbaiting, of course.
This artificial prosperity plan for Wall Street has the added benefit of allowing the captured politicians in Washington D.C. to continue their $1 trillion per year deficit spending with no consequences for their squandering of future generations’ wealth. Bernanke and Yellen will never taper, because they can’t. The Fed balance sheet will continue to grow by at least $1 trillion per year until they crash the financial system again. Except this time, there will be no money printing solution. We are all trapped like rats in this monetary experiment being conducted by evil mad scientists. No one will get out alive. Welcome to the new normal. Now eat your cheese.
The wonder that is Amazon summarized in six plus one easy charts.
And so, one by one, the crazy pills theories start rolling out. Yesterday, as we first pointed out, Deutsche Bank made waves when it became the first "serious" organization to suggest that the Fed has now missed its tapering window, and will plough on thorough until the next downturn without ever lowering the pace of Flow (of course the reflexive paradox that the economy would be in an out of control depression without QE in the first place somehow does not figure in that calculation). And while this has not been a novel idea (we first predicted that once perpetual QE starts it will never taper, long before QE 3, aka QEternity was even publicly announced last summer) today, all the penguin "pundit" copycats have jumped aboard this theory. Well, not all. SocGen has decided to make waves of its own with an even crazier pills idea: instead of no taper... ever... the Fed, that glorious redistributor of wealth from the middle class to the 1%, while happy to adhere to that old saying: "a funded welfare program a day, keeps the guillotines away" will not only not announce a Taper in next week's FOMC meeting but will in fact hike QE!
America, as a nation and a culture, is now being held hostage and tortured into submission on a grand scale using economic terror by the elitist establishment which dominates BOTH major political parties. The goal? To push our society to conform completely with the concepts of globalization, bureaucratic micro-management, and greatly reduced living standards. We are being conditioned to accept defeat and failure, and like children, to cry out for a parental authority to save us in our state of helplessness and fear, even if that authority was the cause of our fear from the very beginning. With so many near misses culminating so close together, it may be wise to consider what could happen in the the next three months while we wait for debt debate theater part deux. Like a prisoner in Abu Ghraib, America is trapped, waiting for the next humiliation, the next degradation, or the next session of pain. Are we merely being acclimated to the idea of incessant crisis? Are we learning to become apathetic at the edge of the chasm? Or, are we being driven to madness, mass-madness, by a concert of elitist interrogators seeking our acquiescence? Again, the central purpose of torture is to acquire consent. Not just extorted consent, but voluntary consent. The globalist establishment wants us to beg them to save us from the tortures they create. If we never give them this, they will never win.
There was some hilarious news overnight: such that supposedly Spain's GDP rose 0.1% in Q3 thus ending a 2+ year recession. There is no point to even comment on this "recovery" - we will merely remind that starving your economy of imports for the sake of generating a GDP-boosting trade surplus, while consumption declines, solves nothing and point readers to charts of Spanish non-performing loans, housing prices, and unemployment, oh and the massive Bad Bank of course, and leave it at that. In terms of real news, futures are lower following a drubbing in Asia over the previously discussed concerns over tighter Chinese monetary policy. Amusingly, as Reuters notes, this has hit global shares still high on hopes of extended U.S. stimulus on Wednesday, when the dollar tentatively steadied at an eight-month low after its latest slide. The immediate casualty is the USDJPY, which continues to slide and is approaching the 200SMA. In short: fears that China may have resumed tapering have offset yesterday's hope that "horrible" job numbers mean no Fed tapering until mid-2014.... New Normal fundamentals.
Tired of reading 640 pages of "The Intelligent Investor"? Exhausted from imbibing 700 pages of "Security Analysis"? Fed up with the 400 pages of "The General Theory of Employment, Interest, and Money"? Have no fear, we have summarized the new normal's investing mantra into 14 words...
We have long discussed the 'hidden' and not-so-hidden inflations that are impacting the standard of living for all but the wealthiest in America... and it is hardly new to anyone that the USA faces a demographic dilemma as aging boomers draw down on an ever-shrinking base of entitlement provisions... However, when we saw this slide from Kimberly-Clark's latest earnings call, we were surprised at just how clearly these two trends showed up...
Mayor Bloomberg's crusade to micromanage what New Yorkers put in their mouth has so far failed, but that just means the attempt to impose the first "New Normal" nanny state, in which individual calorie consumption is regulated for the greater good by the even greater government, has simply shifted its geographic location. In this case to Mexico, which according to the OECD has surpassed the US as the world's fattest country and is "notorious for its love of sweets, fried foods and pastries" where as the WSJ reports, the lower House of Congress passed on Thursday a special tax on junk food that is seen as potentially the broadest of its kind, part of an ambitious Mexican government effort to contain runaway rates of obesity and diabetes.
While last week's relentless panic buying has been extensively commented on, it was last week's nearly 50% plunge in near-term stock vol that the major news as the world went from risk off mode to risk on. It wasn't just stocks whose volatility imploded: it was the implied near-term volatility of all asset classes that was hammered in the past three days. But while everyone is fascinated by the rapid VIX down move, it is what someone did on Friday by betting that VIX will double by February in a 24/29 VIX Call Spread, that was of note. The amount wagered: $6.7 million. Whether or not this was an outright trade, or a hedge (and if one listens to Jamie Dimon perjuring himself to Congress, any trade is a hedge, adding further to the confusion) is unknown, but it is not pocket change betting that the plunge in vol will be merely transitory.
Israel Central Bank Follows Fed With First Woman Chairman Appointment After Larry Summers' RejectionSubmitted by Tyler Durden on 10/20/2013 08:45 -0400
We can only imagine to what depths of misogynistic hell Larry Summers' ego must have tumbled after women ended up overtaking him as heads of not one but the two central banks he was slated to head within a month.
Thirteen cars came off the tracks around 1 a.m. Saturday -- 9 of which were carrying liquefied petroleum gas and four that were carrying crude oil. The derailment prompted local officials to declare a state of emergency and the evacuation of the nearly hamlet of Gainford about 80km west of Edmonton. As AP reports, an eyewitness noted "the fireball was so big, it shot across both lanes of the Yellowhead (Highway)... there's fire on both sides." According to the latest reports, the train cars remain ablaze as the liquified hydrocarbons continue to leak. Parkland County police chief added "how it exploded and why is yet to be determined," but while only 2 injuries (CN employees) and no deaths have been reported, he noted "it's still a risky situation so we need to contain as much as possible and keep people far away." This explosion comes just 3 months after the disaster that too 47 lives in Lac-Megantic and once again raises questions over the safety of dramatically increased rail traffic from/to the Bakken.
As RealtyTrac observes in its latest flipping report, while home-flipping among high-end homes, or those reserved exclusively for the New Normal aristocracy which buys and sells with reckless abandon almost exclusively on an all cash basis, is up 34% over the prior year with flipping on houses priced between $2 and $5 million was up a ridiculous 350%, overall flipping activity is finally starting to subside and in the third quarter was down by a third from Q3 and over 10% down from the the prior year. Not surprisingly, the bulk of the ultra-luxury flips were limited to New York and the four core California bubble markets. "More than three-fourths of all high-end flips were in five markets: the New York metro area and four coastal California markets — Los Angeles, San Francisco, San Jose and San Diego. Flips on homes priced between $1 million and $2 million increased 42 percent year over year, while flips on homes priced between $2 million and $5 million increased 350 percent year over year."
It is oddly appropriate for the BS New Normal, in which as the DOL showed earlier virtually every data point is made up, that moments after the Bloomberg Consumer Confidence Index showed a plunge in consumer expectations to the lowest leve in two years, that the October Philly Fed would come out with a six-month general activity outlook indicator of 60.8 (up from 58.2) and the second highest ever in the history of the series! One really can't make up the farce that biased, propaganda data "reporting" has become.