Robots are going to take all our jobs, and it doesn’t matter. We should actually be thrilled about the prospects of automation, because it means freeing up economic resources, including arguably the most valuable resource, time.
Securities Industry and Financial Markets Association
"... it would only take a 100 basis point rise in Treasury bond yields to trigger the worst price decline in bonds since the 1981 bond market crash. And since those interest rates are embedded in the pricing of all investment assets, that would send them all much lower."
"The most shocking hole that will be blown through people’s portfolios is if discount rates rise again fairly quickly. Even if the circumstance is one in which the global economy is doing well, the impact of a 1.5% increase in the discount rate on equities from here is a fall of over 30%, which would almost certainly be enough to swamp the earnings impact of the decent growth."
According to Goldman, here is the unpleasant choice facing the world: continue slowly sinking into a deflationary singularity, coupled with ever greater systemic leverage which makes escape from the ZIRP/NIRP trap impossible as social unrest builds up and ultimately spills over into the streets, or unleash an inflationary impulse, one which crushes countless debt holders, leads to trillions in losses, and requires yet another consolidated bailout.... oh, and also more social unrest.
As the Fed has rushed headlong into boosting interest rates, it forgot one small thing: combining a duration estimate of 5.6 years with a total notional exposure of $17trn, and current Dollar price of bonds of $105.6, indicates that, to first order, a 100bp shock to interest rates would translate into a $1trn market value loss. That is using the more conservative estimate of the bond market. Using the broader bond market sizing of $40trn, the market value loss estimate would be $2.4 trillion. And just like that the Fed is trapped.
This is just the beginning. The bond bubble will take months to completely implode. And eventually it will consume even sovereign nations. Globally the bond bubble is $100 trillion in size: larger than even global GDP.
“I can’t even say with conviction that I’m sure, looking strictly on a cost-benefit basis, that FATCA’s... benefits are going to outweigh the cost.” FATCA constitutes theft. The US government is generating a little bit of revenue and the great expense of foreign banks and governments (not to mention the thousands of Americans who have had to renounce their citizenship because of FATCA’s idiotic rules).
The following story is guaranteed to make you sick. Once again, we’re shown that following trillions in taxpayer funded bailouts and backstops, TBTF Wall Street banks immediately went ahead and focused all their attention obtaining loopholes in order to transfer risk and make billions upon billions of dollars in the financial matrix, as opposed to adding any benefit whatsoever to society.
Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."
Dear NSA Employees, You Now Have a Green Light to Loot and Pillage. It’s Time to Get Paid:Are you just another one of those frustrated NSA employees who feels that unconstitutionally spying on your fellow citizenry under false pretenses isn’t giving you same thrill it once did? If so, have no fear.
Regardless of the origins of the Ebola crisis, whether it be conspiracy or gross incompetence, there are a number of aspects to the entire situation which simply do not add up. While one would not argue that preparedness on the part of the federal government regarding a possible pandemic is a bad thing, its behavior thus far has exuded anything but preparedness. Considering America’s sordid history with national emergency exercises, the ongoing FEMA pandemic exercise cannot help but raise red flags.