The reality of what happened in Cyprus is a far different matter. And the reason that this reality has not been featured as headline news is because doing so would reveal the following:
There is no better way to describe what the recently departed CFTC commissioner Scott O'Malia just did when he bailed from the commodity watchdog to become the new head of the International Swaps and Derivatives Association, aka ISDA, the biggest banking group that has constantly opposed every intervention and attempt to regulate the swaps market by the CFTC since the Lehman crisis, than an epic farce.
Those keeping track and hoping the second default would finally hit have to hold their breath again after yet another last minute bailout has now made a complete mockery of China's "deliberate" intentions to clear up the rot plaguing its bond market. As Reuters reports, Huatong avoided a "landmark bond default at the last minute on Wednesday, raising enough funds to pay off both principal and interest on a 400 million yuan ($64.51 million) bond." Who bailed it out? Why the same government which continues to say one thing and do something totally different.
Bitcoin Reached Next Stage In Money Evolution, Smart Contracts Replace Wall Street Bank Functions - NOW!Submitted by Reggie Middleton on 07/23/2014 07:00 -0400
The future of finance has arrived and NOTHING will be the same. Smart contracts as a proof of concept are now no longer a concept. This technology makes it clear why an "investment bank in a wallet" causes banks to fear bitcoin!
Professor Krugman is at it again - conjuring fairy tales about a benign long-term fiscal outlook. Notwithstanding that the public debt has surged from 40% to 75% of GDP during the six short years since 2008, he claims there is no reason to fret and that there is no debt spiral anywhere in the future. In part that’s because the Keynesian priesthood has declared that interest rates have down-shifted on a permanent basis. Under a regime of even modest monetary normalization over the next quarter century, current fiscal policy will lead to interest rates that are far higher, not lower, than the growth rate of nominal income. So its time to put Greece right back into the front and center of the US fiscal picture.
?Economics is like a Monet painting. Stand too close and all you see is a bunch of seemingly random paint strokes. Back up a few steps and an image emerges. The painting of bubblenomics started with the Plaza Accord, September 1985, where five nations agreed to manipulate the dominant currencies at the time. Japan enjoyed a 50% devaluation of the US$ vs the yen, artificially enriching its citizens so they could travel the world in busloads with eighty pounds of cameras around their necks. The consequences of that bubble have yet to be corrected. Based on healthy guidelines, the price of real estate is far too expensive today, or, more precisely, the cost of housing is too high but we may need another crisis before the market will wake up to the needed changes. In the meantime, money printing and hype will continue.
History is replete with the total failure of Central Planning. Whether one look to China or the USSR or the US today, Central Planning has never successfully worked. It creates the illusion of stability in the short-term, but eventually the truth comes out: that it is a TERRIBLE means of deploying capital (both human or monetary).
- EU Works to Punish Russia as MH17 Bodies Leave Rebel Area (BBG)
- Bodies From Malaysia Airlines Flight Begin Long Trip to Netherlands (WSJ)
- Israel pounds Gaza as Kerry arrives (Reuters)
- U.S. judge dismisses Republican lawsuit over Obamacare subsidy for Congress (Reuters)
- Israel Soldier Missing Amid Assault on Hamas in Gaza (WSJ)
- Detroit Retirees Vote in Favor of Pension Cuts (WSJ)
- Russia Axes 1st Bond Sale in 3 Months as Ukraine Drives Up Yield (BBG)
- Wall Street Cut From Guest List for Jackson Hole Fed Meeting (BBG)
- Credit Suisse to Exit Commodities, Posts Big Quarter Loss (BBG)
- Draghi Cedes Euro Control to Yellen on Fed Rate Wagers (BBG)
Following the overnight ramp in various JPY crosses (dragging equity futures higher, and the Nikkei up 0.8%) it is as if the market is desperate to put all of last week's geopolitical events in the rearview mirror, and while yesterday there were no economic events of note, today's CPI and existing home prints should provide at least some distraction from the relentless barrage of one-line updates on Ukraine and Gaza. Still, that is precisely where the biggest risk remains, with an emphasis on the possibility of more Russian sanctions, this time by Europe.
The more one thinks about potential solutions to the gigantic mess we have found ourselves in as a species, the more one has come to believe we need to break apart into a vast multitude of city-states. The revolutionary concept of America in the first place was this idea of “self-governance,” something we do not posses an iota of in this day and age. As was noted recently in an academic paper published by Princeton and Northwestern, these United States have mutated into nothing short of an oligarchy. In fact, the study demonstrated that the will of the people has essentially zero impact on legislation whatsoever. The current overly centralized paradigm parasitically engulfing the planet will experience a series of spectacular collapses in the years ahead that will make 2008 look like practice. As the centralized beast episodically implodes upon itself, we will have a historic chance to remake our world in a new way that will better serve humanity. That new paradigm will consist of freedom through decentralization
Today we’re going to explain what the “final outcome” for this process will be. The short version is what happens to a cancer patient who allows the disease to spread unchecked (death).
Reading through the media coverage one might think that anyone wanting to come to the US can do so with relative ease. After all, there is an ongoing debate on providing amnesty to illegals and the system seems to be so overloaded at the border down south that why not just take your chances? However, for skilled professionals and expats the reality is quite different. These days employment opportunities in the US need to be carefully balanced against subjecting yourself to US laws and regulations, some of which are unique in the developed world and can have serious consequences on your wealth, wellbeing and even personal freedoms.... As Churchill once said, "Americans will always do the right thing once they run out of options". I just hope us foreigners will still be around to see it.
Would you like to have a digital identity card that is automatically issued to you at birth? In one European nation, residents use such a card when they go to the hospital, when they do their banking, when they go shopping and even when they vote. This card has become so popular that this particular European country actually plans to start issuing them to millions of non-citizens all over the planet who request them. Never heard about this? Neither had I before this week. The Economist is calling for the entire planet to adopt this “national identification system” that the little nation of Estonia has adopted. The Economist is touting all of the “benefits” of a “national identification card”, but are there dangers as well? Could adopting such a system potentially open the door for greater government tyranny than we have ever known before?
The S&P 500 has only been at this level or higher a handful of times in the last 100 years. All of them have coincided with major market peaks.
Yesterday, we laid out extensively what the official Ukrainian case was when it came to "proof" that Russian separatists had launched the Buk missile which allegedly took down flight MH-17; we also highlighted several glaring inconsistencies and questions that still remained open after the "incriminatory" YouTube clip release. So far, any international response has been muted to this hastily prepared evidence of Russian involvement, although the day is still young. So what about the Russian side? Below we present the key arguments made by Russia to suggest that not it, but Ukraine, was responsible for taking down the Malaysian Boeing.