SWIFT

Financial Warfare & The Big Reset: Koos Jansen Interviews Willem Middelkoop

Economic warfare aims to capture or otherwise control the supply of critical economic resources or destroying a country’s currency.  The US understands better than anybody else that a country can sometimes be hurt more by doing this than by bombing its infrastructure. The tool of exclusion from the dollar-denominated global financial system is described as a 'neutron bomb' constituting a more potent bomb than any military weapon. But recent developments signal the first stages of the US dollar’s decay.

Fitch Warns Of "Historic Junk Milestone" As US Defaults Surge

Despite the rear-view-mirror-gazing optimists proclamations that default rates have been low (which matters not one jot when pricing the future expectations of default into corporate bond cashflows), Fitch just released its forecast for 2016 defaults and notes that more than $5.5 billion of December defaults has increased the trailing 12-month default rate to 3.3% from 3% at the end of November, marking the 13th consecutive month that defaulted volume exceeded $1.5 billion, closing in on the 14-month run seen in 2008-2009.

Frontrunning: December 14

  • Oil prices drop towards 11-year lows on worsening glut (Reuters)
  • Third Avenue Seen by Top Investors as Fueling More Carnage (BBG)
  • Lucidus Has Liquidated $900 Million Credit Funds, Plans to Shut (BBG)
  • Investor nerves tested with yuan, oil, Fed in play (Reuters)
  • Junk Bonds Stagger as Funds Flee (WSJ)
  • Seattle lawmakers set to vote on allowing Uber, other drivers to unionize (Reuters)

Playing Chess With Putin

"What’s it like playing chess with Obama?" asks a top aid of Russian president Vladimir Putin. Putin replies, "It's like playing chess with a pigeon. First it knocks over all the pieces, then it shits on the board, and finally it struts around like it won."

6 Of 8 Trump Supporters Stand Behind Muslim Travel Ban; Muslims Furious

"We're gonna have to figure it out, we can't live like this. It's going to get worse and worse, we're going to have more World Trade Centers. It's going to get worse and worse, folks. We can be politically correct and we can be stupid but it's going to be worse and worse." Donald Trump said even as an AP summary of Muslim reactions to Trump can be summarized as follows: "He's trying to alienate not only the Muslim population of the United States but all the Muslims around the world."

An Open Letter Calling For The Resignation Of Saudi-Sympathizing Politicians

"...Should you continue your flagrant support of Saudi Arabia by way of foreign aid and weapons sales, you are no longer to be trusted to hold an elected position of influence. You should therefore resign, effective immediately. The question is: Is your allegiance to the people of the United States, or are you beholden to another kingdom?"

Draghi Holds Water Pistol Press Party - Live Feed

Update: PSPP extended to March 2017 "or beyond", regional debt added to QE-eligible asset pool

Having just let everyone down with a less-than-spectacular 10 bps depo rate cut, Mario Draghi will now try to appease a spoiled market by announcing an expansion and/or an extension of PSPP. 

House Democrat Warns Obama's Actions Could Lead To "Devastating Nuclear War"

“Russia’s installation of their anti-aircraft missile-defense system increases that possibility of — whether it’s intentional or even an accidental event — where one side may shoot down the other side’s plane. And that’s really where the potential is for this devastating nuclear war."

Fourth Turning - Politicians Driving The World Towards War

Americans today are blissfully distracted by their iGadgets, plotting out their holiday shopping strategies, leasing new cars, eating out, and buying advance tickets to the new Star Wars movie. They don’t see the wicked winter squalls ahead which will try their souls. We are experiencing the lull before the storms, but the storms are surely coming. The potential for catastrophe is high and burying our heads in the sand is not a strategy.

EU Reaches Deal With Turkey, Will Pay €3 Billion To Stem Refugee Outflow But Not Everyone Wants To Pay Up

As previewed earlier today, moments ago the EU and Turkey reached a deal in which Europe would give Erdogan another €3 billion to be embezzled accordingly (perhaps to buy more tankers for Erdogan's son with which to ferry ISIS oil, or to build a new annex for his palace, or just to recycle the money and purchase even more F-16s from the US), in exchange for which Turkey would promise to close its borders to millions of outpouring Syrian refugees and agree to accept deported refugees already located in Europe.