"When are actual boots-on-the-ground, not Presidential promise-breaking boots-on-the-ground?" ... when, as The Washington Post reports, those 'boots' are protected by 'legal alchemy' called Title 50... simply put, as Ignatius concludes, "U.S. boots are already on the ground, and more are coming. The question is whether Obama will decide to say so publicly, or remain in his preferred role as covert commander in chief."
Here’s the giant flaw in Obama’s incendiary strategy. The Peshmerga can be counted upon to ferociously defend Kurdistan against ISIS encroachment, and the Shiite militias will doubtless accomplish the same in their own territories. But no one with a modicum of historical knowledge would think it sane to send them up into the Sunni lands of the Euphrates valley to mop-up after the American bombs, missiles and drones. In short, once Washington is in full bombs away mode there will be no Free Syrian Army or reconstituted Iraqi army to finish the job. So what Obama actually launched last evening was Operation Blowback - Washington's stupidest military campaign yet.
- Showtime for Apple: Big phones, smart watches and high expectations (Reuters)
- Bank of England Gov. Mark Carney Signals Spring Rate Rise (WSJ)
- Quebec Shows Scots Question Returns Even If Answer Is No (BBG)
- Hush money with a 9 year vesting period: Ex-SAC Fund Manager Martoma Sentenced to Nine Years in Prison (BBG)
- Dreams on hold, Brazil's 'new middle class' turns on Rousseff (Reuters)
- Fed to Hit Biggest U.S. Banks With Tougher Capital Surcharge (WSJ)
- Egypt court sentences Brotherhood leader, cleric to 20 years in jail (Reuters)
One of the more amusing comments overnight came from Bank of America, which now predicts that China's export growth will be boosted by iPhone 6 by 1% per month through year-end. Whether or not this is accurate is irrelevant, but we are happy that unlike before, BofA has finally figured out that iPhone sales are positive for Chinese GDP, not US, which was the case with the release of the iPhone 4 and 5, when clueless strategists all came out boosting their US (!) GDP forecasts on the iPhone release. We note this because the long-awaited release of Apple's new iPhone will certainly grab some attention tomorrow. According to a BofA poll last week and of the 124 respondents surveyed, 66% of those have noted that they are going to buy the new iPhone and of those planning to buy 75% of those will be replacing their iPhone 5/5s.
UK In "Full Panic Mode", Rains Brimstone, Bribes On Scotland As "Yes" To Independence Poll Crosses 50%Submitted by Tyler Durden on 09/07/2014 22:59 -0400
All pundits who over the past few months have been saying the possibility of Scottish independence as a result of the September 18 ballot, is at best a pipe dream got a rude wake up call overnight, when Scottish YouGov poll for the Sunday Times put the "Yes" (for independence campaign) on top for the first time since polling began, with No below the majority cutoff line for the first time, at 49, when undecided voters are excluded, and even when including undecideds "Yes" is still ahead by two points at 47-45. As the Spectator reports, "in the space of four weeks, "No" has blown a 22-point lead."
A permanently high plateau of stock prices is a marvelous innovation: you can practically set your watch to the steady tick of new all-time highs, and all you need to plan your retirement or cash-out of your stock options is a ruler and a pencil--just extend the price line as far forward as you want, and calculate your wealth. The only downside of this permanently high plateau of stock prices is that it eliminates the need for the financial punditry and the workforce of money managers. With bearish influences and volatility both eradicated, there is nothing left to talk about except the upward slope of the permanent plateau.
The US may be closed on Monday, but after a summer lull that has seen trading volumes plunge to CYNKian lows, activity is set to come back with a bang (if only for the sake of banks' flow desk revenue) with both a key ECB decision due later this week, as well as the August Nonfarm Payrolls print set for Friday. Among the other events, in the US we have the ISM manufacturing on Tuesday, with markets expecting a broadly unchanged reading of 57.0 for August although prices paid are expecting to decline modestly. Then it is ADP on Thursday (a day later than usual) ahead of Payrolls Friday. The Payrolls print is again one of those "most important ever" number since it comes ahead of the the September 16-17 FOMC meeting and on the heels of the moderation of several key data series (retail sales, personal consumption, inflation). Consensus expects a +225K number and this time it is unclear if a big miss will be great news for stocks or finally bad, as 5 years into ZIRP the US economy should be roaring on all cylinders and not sputtering every other month invoking "hopes" of even more central bank intervention.
Movement to Declassify 9/11 Information Gathers Momentum ... 9/11 Commission Chairs and Congressmen Call for DeclassificationSubmitted by George Washington on 08/31/2014 02:30 -0400
With regard to the goings-on in Ukraine, quite a few European and American voices piping in, saying that, yes, Washington and Kiev are fabricating an entirely fictional version of events for propaganda purposes, but then so are the Russians. They appear to assume that if their corporate media is infested with mendacious, incompetent buffoons who are only too happy to repeat the party line, then the Russians must be same or worse. The reality is quite different.
"Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly.... Central banks, including the U.S. Federal Reserve, have taken aggressive action, consistently lowering interest rates such that today they hover near zero. They have also pumped trillions of dollars’ worth of new money into the financial system. Yet such policies have only fed a damaging cycle of booms and busts, warping incentives and distorting asset prices, and now economic growth is stagnating while inequality gets worse. It’s well past time, then, for U.S. policymakers -- as well as their counterparts in other developed countries -- to consider a version of Friedman’s helicopter drops. In the short term, such cash transfers could jump-start the economy... The transfers wouldn’t cause damaging inflation, and few doubt that they would work. The only real question is why no government has tried them"...
"In our view, the meaning of the (law) is clear and unambiguous," the nonpartisan Government Accountability Office (GAO) wrote, The Pentagon broke the law when it swapped Army Sgt. Bowe Bergdahl, a prisoner in Afghanistan for five years, for five Taliban leaders. As AP reports, the GAO charges that the administration failed to notify the relevant congressional committees at least 30 days in advance of the exchange, and furthermore, used $988,400 of a wartime account to make the transfer without express appropriation - breaking the Antideficiency Act. So it seems The White House's previous statement that it "acted lawfully" are once again false. As Republican Senator Susan Collins exclaimed, "The president's decision is part of a disturbing pattern where he unilaterally decides that he does not have to comply with provisions of laws with which he disagrees."
The Wall Street Journal's Jon Hilsenrath unleashed an instantaneous reaction to today's FOMC minutes and the message is clear - markets are much less uncertain than the Fed about the timing (sooner rather than later) of the first rate-hike. The minutes of the meeting, Hilsy notes, provide fresh evidence of an intensifying debate inside the central bank about when to respond to a surprisingly swift descent in the unemployment rate and rising consumer prices. The minutes appeared to reflect a slightly more aggressive stance than Ms. Yellen's testimony.
This weekend’s “Things To Ponder” is comprised of a variety of readings that cover a fairly broad spectrum from educational to informative and even a little bit sarcastic.
Yes, there is malpractice, but our current system is insane.
Have you ever heard of the Office of Information and Regulatory Affairs, otherwise known as OIRA? OIRA was created in 1980, and shortly thereafter the Reagan administration greatly expanded its powers by signing an executive order that gave the office the authority to review all federal rules. Ever since then, it has been used to rewrite or entirely block regulations from almost every regulatory body imaginable. Simply put, this powerful organization operating in the shadows of America’s faux democracy is used by lobbyists and large corporate interests to further entrench the established oligarchic power structure.