Want to hear the worst idea in the history of horrible ideas? How about we take the industry responsible for destroying the U.S. economy and wrecking the lives of tens of millions of people, and then allow it to create a “government-industry cyber war council.” It appears that trillions in taxpayer bailouts simply wasn’t enough for Wall Street. Noting that it can seemingly get whatever it wants whenever it wants, the industry is now positioning itself to overtly control U.S. “cyber” policy. What could go wrong?
In Reality, War Will Bring An End to the Petrodollar, and Impose Hardship on the Average American ...
Turkey's "200 Tons Of Secret Gold" Trade With Iran: The Biggest, Most Bizarre Money Laundering Scheme Ever?Submitted by Tyler Durden on 06/25/2014 22:18 -0400
While Ben Bernanke once said that "gold is not money", it appears China, Dubai, and most especially Turkey and Iran would disagree. On the heels of the "Petrogold" wars we discussed previously, a leaked report of a secret plot to 'juice' Turkey's trade balance exposes gold at the heart of "one of the most complex illicit finance schemes [prosecutors] have seen."
Export-Import Bank (Ex-Im), the federally-backed bank which has been around since 1934, faces a very serious threat to its survival. The most important aspect of this entire fight is the fact that on opposite sides of the debate are not Democrats versus Republicans, but once again Republicans vs. Republicans. We again see tea party Republicans facing off against establishment RINOs. On one side we hear claims by the tea party wing that the Ex-Im merely serves as a conduit for crony capitalism and favoritism to large corporations, or those willing to bribe officials. On the other side, we see establishment Republicans, who are extremely cozy with mega-corporations, maintaing that the institution plays a crucial role in financing American exports to make them competitive. The battle against the Ex-Im bank, a 80 year old institution, is just another example of the sort of changes that happen in Fourth-Turnings. So what does Barack Obama think of the Export-Import bank? As usual, it depends on who you ask, Presidential-candidate Obama, or President-elect Obama.
- Tea Party struggles to repeat Cantor-style shock in Tennessee (Reuters)
- Iran Deploys Forces to Fight al Qaeda-Inspired Militants in Iraq (WSJ)
- Oil Rallies as Militant Advance in Iraq Threatens Crude (BBG)
- Gold Set for First Back-to-Back Weekly Gain Since April (BBG)
- Hedge Funds Get Stung by Slow Markets (WSJ)
- Sterling nears 5-year high after Carney speech (FT)
- Britain Warns Boom in Real-Estate Prices Threatens Economy (WSJ)
- East Europe Leaders Urge EU Unity to Counter Russia (BBG)
- Formula One Said to Be Valued at $8 Billion as Malone Seeks Stake (BBG)
- Dumb and dumber: Abe Plans Company Tax Cut in 2015 as Kuroda Warns on Budget (BBG)
From Ancient Egypt to Modern America …
Treasuries continue to do nothing wrong. Bullish views on bonds over the past several months have been met with stern opposition; however, several are now beginning to question their defiance. With such in mind, it is worth reviewing once again some possible explanations behind the bid. There are many reasons to expect their strong performance to continue (particularly over the next week).
Moments ago, the Treasury department concluded its auction activity for the week with the issuance of $29 billion in 7 Year Notes (Cusip WN6), which in keeping with the prior two - 2 and 5 Year - auctions earlier in the week, also had a modest tail: the bond priced at a 2.010% yield (73.9% allocation) compared to a When Issued of 2.009%. Then again, considering the big drop in yield from April, when the same auction priced at 2.32% this is perhaps not too surprising. Notably, this was the first 7 Year auction tail since December, and is once again notable considering the overall strength of the secondary bond market.
The New York Fed's historical appreciation society has looked back at what was likely the US' first crash and foud that Alexander Hamilton's actions in 1792 which they claim "appears to have effectively managed the crisis with little or no long-term spillover to the economy," has now become the blueprint for manipulative intervention until this day by the central planners who know far better than 'us' collectively... but there are some lessons that Bagehot has that are worth remembering...
As The Fed tapers and shifts its decision-making process away from rules-based, model-backed strategies in favor of "we'll know when to tighten when we see it" qualitative hand-waving, it seems the need to maintain teams of PhDs - to mutually masturbate over the historical back-fitted effectiveness of their models - is lacking. As The Boston Globe reports, The Federal Reserve Bank of Boston will cut nearly 15% of its workforce - around 160 jobs - in the largest layoff in over a decade... “It’s obviously a tough decision for us and the folks who are here,” Lavelle said. “It’s really about cost and efficiency.” Austerity strikes... (as it turns out the job cuts are due to losing a key customer - The US Treasury!)
A division of the U.S. military known as the Combating Terrorism Technical Support Office (CTTSO), which studies threats to national security (i.e., the status quo’s grip on power) has listed Bitcoin amongst a number of potential terrorist threats. Of course, as we and many others have noted repeatedly, anything which threatens the prevailing criminal status quo will be merely labeled a “terrorist threat” in order to neutralize it. Just in case you aren’t yet convinced of how insane the folks at CTTSO are, “also on the CTTSO’s list of terrorism research topics were Android, Motorola, social media and virtual reality.” What has happened to this country...
20 years in prison... That’s the penalty you could face for traveling to a country the President has labelled to be “of concern”. Sending any form of monetary assistance to people in the country merits further steep penalties. While something as innocuous as travelling abroad is enough to get the average American 20 years in prison, the government is using your tax dollars to aid terrorism directly… and using YouTube as their auditor. Sounds about right for a terrorist organization whose leader has a Nobel Peace Prize.
For years, the suspicion that Mr. Putin has a secret fortune has intrigued scholars, industry analysts, opposition figures, journalists and intelligence agencies but defied their efforts to uncover it. Numbers are thrown around suggesting that Putin may control $40 billion or even $70 billion, in theory making him not only the richest head of state in world history but possibly the richest man alive in the world today, period. Now, the quest to track down, and isolate, Putin's billions launches in earnest.
Military Keynesians Are Full of Sh ... (Cough) ... Shallow Myths