We are currently experiencing disturbances in the force. Credit and volatility have never acted this way before, and I can quantify it exactly. Never before has the VIX gone from 11 to 20 in just four days. But it’s actually bigger than that. Volatility is itself volatile. You can measure the volatility of volatility; traders call it “vvol.” And the only times vvol has been this high since the advent of VIX options were in 2007, 2008, and 2011—all times of serious crisis. But we aren’t in a crisis now, are we? Well, we might be, if you think vvol has any predictive power, as we do.
Perhaps those sub-$50 Bakken prices tell us pretty much where global prices are ahead. And then we’ll take it from there. With 1.8 million barrels “that nobody needs” added to the shale industries growth intentions, where can prices go but down, unless someone starts a big war somewhere? Yesterday’s news that US new oil and gas well permits were off 40% last month may signal where the future of shale is really located. But oil is a field that knows a lot of inertia, long term contracts, future contracts, so changes come with a time lag. It’s also a field increasingly inhabited by desperate producers and government leaders, who wake up screaming in the middle of the night from dreaming about their heads impaled on stakes along desert roads.
A year ago, following the whole Supreme Court farce, a bevy of states proved there are more than just "idiot voters" left in the US, when they decided to sue Obamacare outright over one or more of its provisions. They were promptly shut down by a judicial system that is as corrupt as the government itself (needless to say, both working at the behest of their true financial puppetmaster: Wall Street). And yet, in the aftermath of the now epic fiasco that is Obamacare, and not to mention the violent reaction to the administration as demonstrated in the midterm elections, the president may have a tougher time to brush away the next round of adverse reactions against his latest hugely unpopular executive order, one involving the amnesty of over 5 million illegal immigrants. According to AP, Texas is leading a 17-state coalition in suing over the Obama administration's recently announced executive actions on immigration.
It isn’t just our economy that is crumbling. Something is happening to America that no amount of money will be able to fix. Everywhere around us we can see evidence of the social decay that is systematically eating away at the foundations of our society. It can be found on the streets of our inner cities, in dark basements in extremely rural communities, in the most prestigious boardrooms on Wall Street, and definitely in the halls of power in Washington. Bringing in an entirely different crop of politicians or printing gigantic mountains of money is not going to solve this problem, because it exists in the hearts of millions of ordinary men and women. The truth is that we really need to take a good, long look at ourselves in the mirror...
I believe aggressive empires with bloated bureaucracies, unsustainable debt loads, and chronic military overreach cannot compete against the now capitalist, relatively free-market Asia. The truth is Asia is rising and the debt-ridden Western democracies are failing. The world is an interesting place, and the American Dream still lives - just not so much in the United States any longer. But countries can change for the better; tyrannies are overthrown, and the Internet reformation is a big advantage for people desiring freedom and honest information around the world.
Don’t fence yourself in.
"Drop that plate right now!" – Florida police to 90-year-old WW2 vet Arnold Abbott as he tried to feed homeless people
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.
You have heard of the "No Fly List", right? Well, now the Tories are pledging that if they win the next election in the UK they will establish a list of “extremists” that will have to have their social media posts “approved in advance by the police” before they post them. There are also plans to ban “extremists” from broadcasting and speaking at public events. The stated goal of these proposals is to crack down on terrorism, but in the process the civil liberties of the British people are going to be flushed down the toilet. To help explain, below is a list of 72 types of Americans that are considered to be “extremists” and “potential terrorists” in official U.S. government documents.
Member of Senate Armed Services Committee Agrees
It seems as if the never-ending stream of American plebs being arrested for the most innocuous activities, things that were seen as completely normal just a few years ago, is continuing its irrational march forward toward peak nanny-statism, at which point everything will be criminalized.
- Pope Francis calls for action as Iraqi Christians forced to flee (Reuters)
- Richest Russians Deprived of Luxury Foods by Putin’s Ban (BBG)
- Exxon Drilling Russian Arctic Shows Sanction Lack Bite (BBG)
- Israeli Jets Strike Gaza Targets After Rockets Shatter Truce (BBG)
- U.S. starts aid airdrops in Iraq but no strikes yet (Reuters)
- Banks Said to Be Arranging Argentine Debt Buyer Group (BBG)
- Siberia Flight-Ban Threat Forces Airlines to Mull Options (BBG)
- Malaysia Airlines to Be Delisted in $429 Million Buyout (BBG)
- Erdogan poised to win Turkey's first popular presidential vote (Reuters)
- African Bank Fights Collapse in Espirito Santo-Like Drama (BBG)
- China to build lighthouses on five isles in defiance of U.S. call (Reuters)
We have been warning for years that as a result of the Fed's disastrous policies, America's middle class is being disintegrated and US adults are surviving only thanks to insurmountable debtloads. But not even we had an appreciation of how serious the problem truly was. We now know, and it is a shocker: according to new research by the Urban Institute, about 77 million Americans have a debt in collections.
With year-end target after year-end target having been met and raised by the oh-so-ethical sell-side strategists and asset-gatherers, it appears the Fed's grand plan of dragging every bit of cash into the increasingly more risky equity markets is working. After a rally driven more by financial engineering that real sustainable growth, Bloomberg reports, individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. As one senior equity manager warned, "if Wall Street, after poring over all known data, comes up with a target and we’re already there, and you still see individual investors buying and they’re typically the ones that are late to the party, it would seem there is limited upside," but that didn't stop about $100 billion being added to equity mutual funds and exchange-traded funds in the past year, 10 times more than the previous 12 months. We have found this cycle's greater fool and once again it is the retail investor.
In Hillary Clinton's attempt to seem "one of the people", she made the public relations debacle of portraying herself as "dead broke" at the time she and Bill Clinton left the White House. Of course, the reason this attempt at populist pandering backfired is because as is well-known, even the least educated American, the bulk of wealth American president families accrue is not while in office but after, when they hit the speaking/book publishing circuit. This is just what WaPo found when it conducted a review of the Clintons’ federal financial disclosure: it found that Bill was paid $104.9 million for delivering 542 speeches around the world between January 2001 and January 2013, when Hillary left her job as secretary of state.
What US Veterans Say About The Iraq Fiasco: "When I Left In 2009, I Said In 5 Years There'll Be A Civil War"Submitted by Tyler Durden on 06/16/2014 13:55 -0500
With Iraq having succumbed to sectarian violence worse than anything observed in recent history, which accordint to many was merely exacerbated by US neocon ambitions to feed the ravenous military industrial complex, one can easily discard the opinion of all those on both sides of the argument - first those who said a US intervention was critical, as well as those who demanded a pull out. In fact, the only person who has preserved any credibility, and has not been "surprised" by the recent developments - is the man who said to never get involved in the first place - Ron Paul. But what about those who were tasked with implementing US foreign policy, flawed as it may have been: America's veteran troops.