Reality

Celebrating This Land Of Absurdity

As far as we can tell, U.S. Treasury investors suffer the same cognitive dissonance that the broad U.S. populace takes with them to the shore each July 4th as they celebrate Independence. They believe they live in the greatest country ever conceived. They believe they experience more freedom, opportunity, and prosperity than their cohorts in other nations. They believe their system of government provides for their representation. Yet at the same time they sense that something’s off.

America's "Soaring" Gasoline And Oil Demand Was Just An Illusion: How The EIA Fooled The Algos

"Could it be that the U.S. demand that's helped drive a near doubling of oil prices since mid-February was illusory?" That may be a reasonable conclusion to draw from the latest data published by the DOE.  When looking at weekly figures, it looks like U.S. gasoline demand is soaring. But the latest monthly data, showing the numbers for April, paint a very different picture. They show U.S. gasoline consumption falling between March and April. "The discrepancy between the two sets of data that gives cause for concern."

Kyle Bass Shares The "Stunning" Thing A Central Banker Once Told Him

"I had a fascinating out of body experience meeting with one of the world's top central bankers in a private meeting about three years ago. it was one of those moments where I...it was one of those epiphanies almost, where it's something you and I knew, but hearing him say it, call it one of the four top central bankers in the world, it was a jarring experience for me..." - Kyle Bass

How To Spot A False Flag Event

It's time for those of us who have been reluctant to consider the possibility that our own government could actually be complicit in domestic terrorism in order to further a nefarious agenda to at least stop accepting the government and media’s version of these tragedies at face value. For the most part, the mainstream media is little more than a propaganda ministry for the federal government.

"This Is The Capitulation Phase" - Why Treasury Yields Are About To Really Plunge

For the rates market, the significance of this acceptance phase by pensions cannot be understated, in our opinion. A $3 trillion industry running a $500 billion funding gap and a significant duration gap waking up to reality is likely to have major implications for the market. In the extreme case, entire pensions could be offloaded from corporate balance sheets to insurance companies (increasingly like the UK, Exhibit 1)–generating significant demand for long-end duration during such transactions.

Hedge Funds No Longer Have Any Idea How To Trade This Market

While we sarcastically pointed out back in 2013 that with the Fed (and now every other central bank) as the market's Chief Risk Officer, there is no longer a need for anyone to do fundamental analysis, this has not only come true but the outcome is now is far worse. Because it confirms what we have said all along: not only is there no market left aside from what Central Banks decide will happen to "risk assets" on any given day, but the smart money- both hedge and mutual funds - have now completely lost the plot.

Hacked Emails Confirm NATO Push To Provoke, Escalate Conflict With Russia

Just two weeks ago, a huge scandal erupted within another 'union' as Germany slammed NATO for "warmongering" destroying the fictional narrative that 'innocent' NATO was merely reacting to evil Russian provocations. Now, as The Intercept's Zaid Jilani and Lee Fang expose, retired U.S. Air Force Gen. Philip Breedlove (yes an ironic name for a warmonger), until recently the supreme commander of NATO forces in Europe, plotted in private to overcome President Barack Obama’s reluctance to escalate military tensions with Russia over the war in Ukraine in 2014, according to apparently hacked emails from Breedlove’s Gmail account.

Brexit & The Crisis Of Capitalism

Thousands of commentaries have been issued about Brexit in the past week. Most discuss Brexit as the result of immigration issues, class war, political theater, a reaction against the European Union's bureaucratic power, sovereignty, etc. Other essays focus on the potential upsides or downsides of Brexit. What few if any commentators present is the idea that Brexit is a symptom of the Crisis of Capitalism...

Bob Janjuah Explains All That Is Wrong With The Financial System (And Remains Bearish)

"By dumping the responsibility for the heavy lifting for growth on central banks, we have ended up with asset bubbles, rampant speculation, lack of investment in productivity and in the real economy, significant levels of financial engineering to artificially boost earnings, and merely the (now failed) hope that “trickle down” still works. The outcome has been almost unprecedented levels of rising inequality in the global economy.  I suspect that it is this inequality that was behind a fair chunk of last week’s Brexit outcome and which has driven the rise of extremism across other important nations/blocs."

The Italian Job: "How Did Things Go So Bad?"

How on earth did things go so wrong? Could it be as simple as power-mongering and greed? To rob a line from the 2003 Italian Job, “There are two kinds of thieves in this world: The ones who steal to enrich their lives, and those who steal to define their lives.” Could it be that average working Italians, especially those who have been around for a good long while, feel as if they’ve been victims of both of the two kinds of theft, doubly wronged? “Basta!” their voices scream in defiance. Enough is enough!

ObamaScare Looms - Health Insurers Are Looking For A Taxpayer Bailout

Insurers helped cheerlead the creation of Obamacare, with plenty of encouragement – and pressure – from Democrats and the Obama administration. With the prospect of tens of millions of new customers forced into the market for comprehensive health-insurance plans, whether they needed that coverage or not, underwriters saw potential for a massive windfall of profits. Six years later, those dreams have failed to materialize. Now some insurers want taxpayers to provide them the profits to which they feel entitled - not through superior products and services, but through lawsuits.

Fighting Back? "Robo-Lawyer"-App Overturns 160,000 Parking Tickets

Got a bullshit parking ticket? Now you can appeal it in less than a minute. The new chatbot tool, DoNotPay, uses previously successful appeal letters to draw up a customized template, allowing users to avoid courts, legal fees, stress, and having to use a lawyer. So far, the free app has overturned 160,000 parking tickets in London and New York. With a success rate of 64%, DoNotPay has appealed $4 million in parking fines in just two cities in only nine months of operation.