- Panama Papers: Biggest Banks Are Top Users of Offshore Services (WSJ)
- Panama Papers probes opened, China limits access to news on leaks (Reuters)
- Credit Suisse CEO Distances Bank From ‘Panama Papers’ (WSJ)
- Fed's Evans says market more pessimistic on U.S. rate hikes (Reuters)
- IMF's Lagarde Says Risks to Weak Global Recovery Are Increasing (BBG)
Lars Schall explores the time-honored tradition of following the money in an attempt to discover answers to yet unresolved questions regarding the terrorist attacks of 9/11 in New York City. Mr. Schall is an independent investigative journalist that has produced many hard-hitting pieces regarding Central Bankers' manipulation of gold prices, and the failure of the US Central Bank (The Federal Reserve) to return all of Germany's gold reserves in the past.
Iran's Future Is In Missiles, Not Dialogue, And Anyone Who Says Otherwise Is "Ignorant Traitor": AyatollahSubmitted by Tyler Durden on 03/30/2016 13:30 -0400
The US and its Mid-East allies are furious at Iran for a series of ballistic missile tests that Washington thinks may well violate a UN Security Council resolution. And while some Iranian politicians are prepared to take a conciliatory stance, the IRGC and the Ayatollah are having none of it.
"Eventually, they'll buy all the government bonds; they'll buy all the corporate bonds, all the shares outstanding. Afterwards the housing market goes down, they'll buy all the homes and then the government will own everything... That's the road to socialism."
“What if the banks stop loaning you money to make your payments on your loans? What happens then?”
“I guess I’m assuming that won’t happen.”
Two weeks ago we reported that while for most of 2015, tax withholdings rose at a rate of 5% or more from a year ago, on the back of job growth and gains in wages, commissions and other incentive pay, in recent months there has been a substantial dropoff in this key indicator. Today, TrimTabs put an actual jobs number to this particular decline in tax withholdings: according to the research service, the US added only 55,000 to 85,000 jobs in February, less than half of the official estimate.
- Europe shrugs off pre-G20 China stocks slump, sterling steadies (Reuters)
- China Unveils Its Deliverables for G-20 -- And No Plaza Pact (BBG)
- Foreign Money Could Be Slow to Enter China’s Bond Markets (WSJ)
- China Urged to Stomach Much Higher Fiscal Deficit (WSJ)
- Trump's Momentum Has Republicans in Congress Confused and Cowed (BBG)
When a leading nominee for President gets something exactly right, we should applaud them for it. In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct. Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama. The funny thing is that the Federal Reserve is not even part of the federal government. It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago. It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.
The same Fed which for 7 years provide generous funding to offshore commercial banks, is now granting foreign central banks the same arbitrage privilege, one which worst of all, is almost entirely shrouded in secrecy.
“The most serious risk and the one that has the most potential for escalating in the future is the enterprises’ lack of capital," Fannie's top regulator, Mel Watt says. The GSEs' capital buffer is being steadily depleted as the government sweeps the entirety of the businesses' profits, putting taxpayers in the absurd position of having to bail out two entities they've already bailed out due to the constraints imposed in an effort to recoup the first bailout.
Official Treasury tax-receipt data are at major odds with the much more upbeat numbers reported by the Labor Department. January’s year-over-year payroll increase of 2.665 million, or 1.9%, along with a 2.5% gain in average hourly earnings should yield something in the neighborhood of 4.5% year-over-year growth in tax withholdings — or more than double the actual growth rate in recent weeks. And yet over the past 10 full weeks, starting Dec. 7, tax withholdings have grown just 3.1% from a year ago.
"Unfortunately, I am far more skeptical that these tools will be useful to policymakers in the second scenario of a stressed economic environment. Given the massive externalities on Main Street of large bank failures in terms of lost jobs, lost income and lost wealth, no rational policymaker would risk restructuring large firms and forcing losses on creditors and counterparties using the new tools in a risky environment, let alone in a crisis environment like we experienced in 2008. They will be forced to bail out failing institutions—as we were."
The bottom line is that government needs more money. Lots of it. And there is perhaps no easier pool of cash to "borrow" than Americans’ retirement savings. $7.3 trillion in US IRA accounts is too large for them to ignore. And if you think it’s inconceivable for the government to borrow your retirement savings, just consider the following...
In milestone, two entrepreneurs are set to open a tractor factory in Cuba. The move will mark the first time a US factory has been located on Cuban soil since the revolution.
Now that talking about NIRP in the US is no longer anathema but a matter of survival for market participants for whom frontrunning the Fed's policy failure has emerged as a prerequisite trade, the question is: what are the mechanics of NIRP, what are the implications of negative rates for US markets. Here is the handy answer