The White House has released their (lengthy) fact sheet...
"During the six-month initial phase, the P5+1 will negotiate the contours of a comprehensive solution... Over the next six months, we will determine whether there is a solution that gives us sufficient confidence that the Iranian program is peaceful. If Iran cannot address our concerns, we are prepared to increase sanctions and pressure.
Suspend certain sanctions on gold and precious metals, Iran’s auto sector, and Iran’s petrochemical exports, potentially providing Iran approximately $1.5 billion in revenue
Israelis, Saudis, and Republicans are already questioning the decision...
UPDATE: Details of the deal are emerging including $4.2bn in FX
Despite earlier denials from Iran's Deputy FinMin, EU, Iran, and US officials have confirmed:
- *IRAN NUCLEAR ACCORD WITH WORLD POWERS ENDS 10-YEAR DEADLOCK
- *IRAN WILL HALT 20% ENRICHMENT FOR 6 MONTHS, FARS REPORTS
- *IRAN AGREEMENT DOESN'T FORMALLY RECOGNIZE RIGHT TO ENRICH
- *IRAN AGREEMENT WILL STILL ALLOW IRAN TO ENRICH URANIUM
- *IRAN INTERIM AGREEMENT FREEZES ADDITIONAL SANCTIONS
- *IRAN DEAL LIFTS TRANSPORT AND INSURANCE SANCTIONS ON OIL
There are no details yet - but an interim agreement has been reached to 'roll back' some of Iran's nuclear program in exchange for a lifting of some sanctions. Close U.S. ally Israel opposes the deal as too generous to an enemy it sees as a mortal threat. Israel is not a party to the talks. President Obama will address the nation at 1015ET to take a victory lap (perhaps this foreign victory will lift his domestic approval rating off record lows)...
“We paid our Social Security and Medicare taxes; we earned our benefits.” It is that belief among senior citizens that President Obama was pandering to when, in his second inaugural address, he claimed that those programs “strengthen us. They do not make us a nation of takers.” If Social Security and Medicare both involved people voluntarily financing their own benefits, an argument could be made for seniors’ “earned benefits” view. But they have not. They have redistributed tens of trillions of dollars of wealth to themselves from those younger. Social Security and Medicare have transferred those trillions because they have been partial Ponzi schemes.
"The Senate was established to make sure that minorities are protected."
-Senator Harry Reid 12/8/06
This gridlock [filibusters] has consequences. Terrible consequences. It is not only bad for President Obama and bad for the United States Senate; it’s bad for our country. -Senator Reid, 11/ 21/13
- When it fails, do more of it - Bank of Japan hints at extending ultra-loose monetary policy (FT)
- PBOC Says No Longer in China’s Interest to Increase Reserves (BBG)
- Fed casts about for endgame on easy-money policy (Hilsenrath)
- Big trucks still rule Detroit in energy-conscious era (Reuters)
- Debt Limit Rise May Not Be Needed Until June, CBO Says (BBG)
- Some Insurance Regulators Turn Down White House Invitation (WSJ)
- Say Goodbye to the Car Salesman (WSJ)
- U.S. drone kills senior militant in Pakistani seminary (Reuters)
- French business sector contracts sharply (FT)
- How Germany's taxman used stolen data to squeeze Switzerland (Reuters)
- Fed casts about for endgame on easy-money policy (WSJ)
- France, Italy call for full-time Eurogroup chief (Reuters)
At this point it is incredible that there are any Americans that still trust anything that comes out of the administration's collective mouth. And of course it is not just Obama that has been lying to us. Corruption and deception are rampant throughout the entire federal government, and this has been the case for years. Now that some light is being shed on this, hopefully the American people will respond with overwhelming outrage and disgust. Aside from the now "fake" employment data, the following are five massive economic lies that the government has been telling you... Our financial system is far more vulnerable than we are being told. We are in the terminal phase of the greatest debt bubble in the history of the planet, and when this bubble bursts it is going to be an absolutely spectacular disaster. Please don't believe the mainstream media or the politicians when they promise you that everything is going to be okay.
- JPMorgan $13 Billion Mortgage Deal Seen as Lawsuit Shield (BBG)
- J.P. Morgan Is Haunted by a 2006 Decision on Mortgages (WSJ)
- World powers, Iran in new attempt to reach nuclear deal (Reuters)
- Keystone Foes Seek to Thwart Oil Sands Exports by Rail (BBG) - mostly Warren Buffet?
- How Would Fed Deal With Debt Ceiling Crisis? Look to Minutes for Clues (Hilsenrath)
- Anything to prevent the loss of prop trading: 'Volcker Rule' Faces New Hurdles (WSJ)
- BOE Sees Case for Keeping Record-Low Rate Beyond 7% Jobless (BBG)
- Obama Backs Piecemeal Immigration Overhaul (WSJ)
- Abenomics Seen Cutting Japan Bad-Loan Costs to 2006 Low (BBG)
On Friday October 5, 2012, the BLS released what was arguably the most important report of Obama's first term: the final jobs number, and unemployment rate before the November 2012 presidential election. As so many predicted, it "plunged" from 8.1% to 7.8% allowing the president to conduct countless teleprompted speeches praising the success of his economic recovery. It also served as the basis for the infamous Jack Welch tweet: "Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers" and prompted the pro-Obama media to quickly brand all those who questioned it as conspiracy theorists... Well, as it turns out over a year later, the conspiracy theorists were once again, spot on: the Bureau Of Lies And Subterfuge manipulated the most important jobs report in Obama's career.
If there were any shreds of hope left that the stunning decline of the middle class could be turned around, Obamacare has absolutely destroyed them. Over the past decade or so, the middle class in the United States has been absolutely eviscerated. The number of working age Americans without a job has increased by 27 million since the year 2000, median household income in the U.S. has fallen for five years in a row, and the poverty numbers in this country are spiraling out of control. And now here comes Obamacare. As you will see below, Obamacare is causing millions of Americans to lose their current health insurance policies, it is causing health insurance premiums to explode to absolutely ridiculous levels, and it is systematically killing jobs even though the employer mandate has been delayed for a while.
As Silk Road emerged from the "dark-web", other sites have appeared offering services that are frowned upon by most. As Forbes reports, perhaps the most-disturbing is "The Assassination Market" run by a pseudnymous Kuwabatake Sanjuro. The site, remarkably, a crowdfunding service that lets anyone anonymously contribute bitcoins towards a bounty on the head of any government official–a kind of Kickstarter for political assassinations. As Forbes reports, NSA Director Alexander and President Obama have a BTC40 bounty (~$24,000) but the highest bounty - perhaps not entirely surprising - is BTC 124.14 (~$75,000) for none other than Ben Bernanke. Sanjuro's raison d'etre is chilling, "as a few politicians gets offed and they realize they’ve lost the war on privacy, the killings can stop and we can transition to a phase of peace, privacy and laissez-faire."
Dispassionate discussion of the investment climate.
Obama: "When we buy I.T. services generally, it is so bureaucratic and so cumbersome that a whole bunch of it doesn’t work or it ends up being way over cost."
...and yet, we've been told we must buy a product, and things have been set up so we can only go through the government's market (the "exchange"), and the government has already demonstrated that its market doesn't work. But you can't walk away, you're forced to buy, and there's nowhere else to go. And yet, he wants us to feel bad about the cumbersome bureaucracy the government encountered trying to procure the wherewithal to set up the market it had already decided we would all need to use.
- China to Ease One-Child Policy (WSJ), China announces major economic and social reforms (Reuters)
- Consumers line up for launch of PlayStation 4 (USAToday)
- Trust frays between Obama, Democrats (Politico)
- Yellen Stands by Fed Strategy (Hilsenrath)
- Hero to zero? Philippine president feels typhoon backlash (Reuters)
- Brussels warns Spain and Italy on budgets (FT)
- Moody’s Downgrades Four U.S. Banks on Federal Support Review (BBG)
- CIA's Financial Spying Bags Data on Americans (WSJ)
- Germany Digs In Against Risk Sharing in EU Bank-Failure Plan (BBG)
- Bill Gates wants Norway's $800 billion fund to spend more in Africa, Asia (RTRS)
The overnight global scramble to buy stocks, any stocks, anywhere, continued, with the Nikkei soaring higher by 2% as the USDJPY rose firmly over 100, to levels not seen since May as the previously reported speculation that more QE from the BOJ is just around the corner takes a firm hold. Sentiment that the liquidity bonanza would accelerate around the world (with possibly more QE from the ECB) was undented by news of a surge in Chinese short-term money market rates or the Moody's one-notch downgrade of four TBTF banks on Federal support review. The release of more market-friendly promises from China only added fuel to the fire and as a result S&P futures are now just shy of 1800, a level which will almost certainly be taken out today as the multiple expansion ramp continues unabated. At this point absolutely nobody is even remotely considering standing in front of the centrally-planned liquidity juggernaut that has made "market" down days a thing of the past.
House Oversight and Government Reform Committee Chairman Darrell Issa leads yet another hearing on the Obamacare implementation and the rollout of Healthcare.gov. The Committee will examine the operational challenges in the development of Healthcare.gov and the extent to which recognized Information Technology (IT) best practices were followed. This one should be fun since its the techies answering the questions - US CTO Todd Park and Deputy CIO Henry Chao answering the questions...