While the current episode of Russian geopolitical and economic turmoil may seem significant, the following chart from Goldman Sachs shows the tempestuous time the nation has had over the past 150 years...
Having become convinced that the North Koreans are responsible for hacking the Japanese company Sony (with the apparent help of China or some Chinese folks... though not Russia or ISIS yet), President Obama will hold a press conference to - we are sure - show us the proof, explain how bad the movie was anyway, discuss the "costs" to be imposed, and point out that the terrorists did not win...
United States Of Newspeak – Obama Spins Executive Orders As "Presidential Memoranda" To Avoid ScrutinySubmitted by Tyler Durden on 12/18/2014 22:50 -0500
If there’s one thing we have learned about Barack Obama, it’s that he is a master of deception and absolutely loves to lie to the public. He seems to enjoy conning the plebs to such a degree, I think he actually receives blasts of dopamine every time he does it. The bigger the lie, the better the rush: "President Obama has issued a form of executive action known as the presidential memorandum more often than any other president in history — using it to take unilateral action even as he has signed fewer executive orders. Like executive orders, presidential memoranda don’t require action by Congress. They have the same force of law as executive orders and often have consequences just as far-reaching. And some of the most significant actions of the Obama presidency have come not by executive order but by presidential memoranda."
Obama KNEW Drone Strikes Were Counter-Productive, But Did It ANYWAY
As we explained previously, quietly hidden within the humanitarian-sounding "The Ukraine Freedom Support Act of 2014", under the premise of enabling further sanctions on Russia, is the provision of "lethal aid" to Ukraine. Today, President Obama signed it into law...
*OBAMA SIGNED RUSSIAN SANCTIONS BILL TODAY, but SAYS HE DOESN'T PLAN TO IMPOSE SANCTIONS UNDER NEW LAW
Because he knows full well that is not the important part. The "lethal-aid" aspect is a direct provocation to Russia.. and he knows exactly how Putin will respond.
- Swiss National Bank Starts Negative Interest Rate of 0.25% to Stave Off Inflows (BBG)
- Putin Strikes Uncompromising Stance Over Crisis Gripping Russia (BBG)
- Sony cancels North Korea movie in apparent win for Pyongyang hackers (Reuters)
- U.S. Said Set to Blame North Korea for Sony Cyber Attack (BBG)
- China’s Short-Term Borrowing Costs Surge as Demand for Money Grows (WSJ)
- Russia Currency Market Bends But Doesn’t Break (BBG)
- Jeb Bush Puts Pressure on Chris Christie for 2016 (WSJ)
- From joy to outrage, Florida's Cuban-Americans greet new U.S. policy (Reuters)
- Russians Quit London Luxury Homes as Only Super-Rich Stay (BBG)
Let’s see. Between July 2007 and January 2009, the median US residential housing price plunged from $230k to $165k or by 30%. That must have been some kind of super “tax cut”.
The global oil price collapse now unfolding is not putting a single dime into the pockets of American households - the CNBC talking heads to the contrary notwithstanding. What is happening is the vast flood of mispriced debt and capital, which flowed into the energy sector owning to the Fed’s lunatic ZIRP and QE policies, is now rapidly deflating. That will reduce bubble spending and investment, not add to economic growth. It’s the housing bust all over again.
"By an almost 2-1 margin, or 59-to-31 percent, those interviewed support the CIA’s brutal methods, with the vast majority of supporters saying they produced valuable intelligence." Does this confirm the total degeneration of American culture into a collective of chicken-hawk, unthinking, statist war-mongering automatons? Alternatively, does it merely reflect the effectiveness of corporate-government propaganda? Is it a combination of both?
President Obama "Normalizes" Relations With Cuba, Opens Diplomatic Channels; USAID Chief Resigns - Live FeedSubmitted by Tyler Durden on 12/17/2014 11:50 -0500
“It is clear that decades of U.S. isolation of Cuba have failed to accomplish our enduring objective of promoting the emergence of a democratic, prosperous, and stable Cuba,” White House says in statement. So sanctions don't work?
Rajiv Shah, the administrator for the U.S. Agency for International Development, oversaw secret US programs aimed at regime change in Cuba, abruptly resigned on Wednesday after US and Cuba announced plans to normalize relations and exchange prisoners.
Most commentators remain in a state of denial about the enormity of the price fall underway. Some, failing to understand the powerful forces now unleashed, even believe prices may quickly recover. Our view is that oil prices are likely to continue falling to $50/bbl and probably lower in H1 2015, in the absence of OPEC cutbacks or other supply disruption. Critically, China’s slowdown under President Xi’s New Normal economic policy means its demand growth will be a fraction of that seen in the past. This will create a demand shock equivalent to the supply shock seen in 1973 during the Arab oil boycott. Today's ageing Boomers mean that demand is weakening at a time when the world faces an energy supply glut. This will effectively reverse the 1973 position and lead to the arrival of a deflationary mindset.... Prices have so far fallen $40/bbl from $105/bbl since we first argued in mid-August that a Great Unwinding was now underway. And there have been no production cutbacks around the world in response, or sudden jumps in demand. So prices may well need to fall the same amount again.
Crude Continues Slide, Ruble Stabilizes, US Futures Rebound As Global Stocks Slump: All Eyes On YellenSubmitted by Tyler Durden on 12/17/2014 06:50 -0500
Previewing today's market: near record low liquidity, with chance of ridiculous volatility in the Ruble, energy and equity markets. While no doubt today's main event will be the "considerable" FOMC announcement and the Fed's downward-revised economic projections followed by Yellen's press conference, what traders will be most excited by is that, finally, Jim Bullard will no longer be bound by the blackout period surround FOMC decisions, and as such can hint of QE4 again at his leisure during key market inflection (i.e., selling) points.
After the worst week for stocks in years, and following a significantly oversold condition, it will hardly come as a surprise that the mean reversion algos (if only to the upside), as well as the markets themselves (derivative trading on the NYSE Euronext decided to break early this morning just to give some more comfort that excessive selling would not be tolerated) are doing all they can to ramp equities around the globe, and futures in the US as high as possible on as little as possible volume. And sure enough, having traded with a modestly bullish bias overnight and rising back over 2000, the E-Mini has seen the now traditional low volume spike in the last few minutes, pushing it up over 15 points with the expectation being that the generic algo ramp in USDJPY ahead of the US open should allow futures to begin today's regular session solidly in the green, even if it is unclear if the modest rebound in the dollar and crude will sustain, or - like on every day in the past week - roll over quickly after the open. Also, we hope someone at Liberty 33 tells the 10Y that futures are soaring: at 2.13% the 10Y is pricing in nothing but bad economic news as far as the eye can see.
While most Americans are busy Christmas shopping and making preparations for trips to see family, Congress remains hard at work doing what it does best. Giving gifts to Wall Street and trampling on citizens’ civil liberties.
On the wall of George Orwell's Ministry of Truth from his novel 1984 there were three slogans: "WAR IS PEACE, FREEDOM IS SLAVERY, IGNORANCE IS STRENGTH" It occurred to us that these apply just a little bit too well to the way the Washington, DC establishment operates. But there is a fourth slogan they need to add to the wall of Washington's Ministry of Truth. It is this: DEFEAT IS VICTORY!
President Obama Praises "Patriotic" Torturers, Says USA "Greatest Force For Human Dignity The World Has Ever Seen"Submitted by Tyler Durden on 12/09/2014 13:03 -0500
The White House just released President Obama's response to the CIA Torture Report...