United Kingdom

• ECB Haunted by Paradox as Draghi Weighs Risk of QE Signaling (BBG)
• At odds with Republicans, Hillary Clinton to testify on Benghazi (Reuters)
• House tees up conservative plans to raise debt limit (Hill)
• U.S., Russia to Meet at Syria Conference to Discuss Crisis (WSJ)
• Putin Gains Record Support Among Russians Over Syria, Poll Shows (BBG)
• China Plans 2020 Deadline for Dismantling Capital Controls (BBG)
• Nyrstar Drops the Most on Record as Mining Hit by Metal Rout (BBG)

• Global Stock Markets Edge Higher Though Global Growth Concerns Weigh (WSJ)
• Nikkei up 1.9% because Japan export growth slows sharply, raising fears of recession (Reuters)
• Saudis Risk Draining Financial Assets in 5 Years, IMF Says (BBG)
• Syria's Assad flies to Moscow to thank Russia's Putin for air strikes (Reuters)
• US Prosecutor Preet Bharara Probing Daily Fantasy-Sports Business (WSJ)
• Syrian army denies Russian ground forces fighting in Syria (Reuters)

• Canada's Trudeau topples PM Harper in shock election win (Reuters)
• Where Canada’s Harper Hit Hurdles (WSJ)
• Pugnacious Trudeau Steps Out of Father's Shadow and Into Power (BBG)
• European Stocks Decline, Euro Rallies as ECB QE Optimism Fades (BBG)
• Valeant, Under Pressure About Price Increases, Plans Changes (WSJ)
• Syrian rebels say they receive more weapons for Aleppo battle (Reuters)

Politicians have zero respect for our human rights for they only think about how they are going to raid our wealth to pay for their families and retirements at our expense. These people are highly dangerous. They only see government as the solution and do not grasp that we have rights. Government wants to eliminate all encryption because they are hunting money. You have a 1000 times greater chance of dying in a car crash than by a terrorist. They use terrorism as the great excuse to collect everything we do.

"The market does not appear to be discounting negative knock-on effects. The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair," said a Credit Suisse analyst in its report on the scandal. Estimates from Credit Suisse peg the costs of Dieselgate at a worst-case scenarios of $87 billion. This would make the VW scandal could be even bigger than Enron Scandal and BP Deepwater Scandal combined.

• McDonald’s Close to Deciding Whether to Change Structure of U.S. Real Estate (WSJ)
• Stocks Rise as Stimulus Bets Spur $4.1 Trillion Gain; Oil Climbs (BBG)
• Wall Street bonuses likely to plunge as trading revenue drops (Reuters)
• Syrian army launches Aleppo offensive with Iranian support (Reuters)
• Malaysia’s Najib Razak Played Key Role at Troubled 1MDB Investment Fund (WSJ)
• VW Loses Market Share in Europe as Diesel-Motor Recalls Loom (BBG)

For the first time in years, as PanAm Post reports, lawmakers from Argentina’s ruling Front for Victory coalition have proposed upping the size of the country’s largest denomination banknote to AR$200. While some 42% of Argentineans deemed it necessary in a 2014 survey the Cristina Kirchner administration has ignored repeated requests by economists, banks, and other financial institutions to issue larger-denomination bills. Indeed, Congressman Carlos Kunkel, author of the current bill initiative, claims the measure has nothing to do with inflation, but would "reduce the cost of printing and circulating money."

• China economic growth seen slowing despite policy easing (Reuters)
• FBI, Justice Department Investigating Daily Fantasy Sports Business Model (WSJ)
• Obama to slow pace of withdrawal of U.S. troops from Afghanistan (Reuters)
• Corporate America's Epic Debt Binge Leaves $119 Billion Hangover (BBG)
• Islamic State battles insurgents as Syria army prepares assault (Reuters)
• Why Hillary Clinton Can’t Win by Going After the NRA (BBG)

• Democratic rivals back Clinton on emails, but little else in scrappy debate (Reuters)
• Hillary Clinton Shows Relentless Efficiency in First Democratic Debate (WSJ)
• U.S. Examines Goldman Sachs Role in 1MDB Transactions (WSJ)
• JPMorgan Says Trading Pain Isn't Over After Third-Quarter Slump (BBG)
• Islamic State battles insurgents near Aleppo as army prepares assault (Reuters)
• Oil Slide Means `Almost Everything' for Sale as Deals Accelerate (BBG)

• Playboy to Drop Nudity as Internet Fills Demand (NYT)
• Stock futures fall on weak China trade data (Reuters)
• Any Hall is down 20% YTD (WSJ)
• Global Stocks Slide With Metals After Chinese Imports Tumble (BBG)
• Clinton's tack to the left to be on display in Democratic debate (Reuters)
• Switzerland Said to Impose 5% Leverage Ratio on Big Banks (BBG)
• AB InBev, SABMiller brew up $100 billion deal (Reuters)

Fed chief Janet Yellen’s hesitations and the market turmoil since August seem to validate that it is impossible to stop the accommodative monetary policy, unless you accept that doing so would trigger a new global crisis. The Fed is aware that raising interest rates too fast and too high could have the same effect as pressing the nuclear button. The whole system could collapse and it cannot be taken for granted that the central banks would be able to extinguish the fire this time. Their strike force has weakened because their balance sheets are exposed to market fluctuations and their credibility was seriously damaged because the measure they have taken have failed to strengthen the economy.

• Global stocks eye biggest rally in four years on Fed relief (Reuters)
• FOMC Minutes Sap Confidence in Fed's 2015 Rate Hike Resolve (BBG)
• Glencore to cut annual zinc production by a third (FT)
• Tea Party wave that lifted Republicans threatens to engulf them (Reuters)
• Why Kevin McCarthy Came to Quit Speaker Race (WSJ)
• A U.S. Recession Just Got a Little More Likely (BBG)

The US and world economies are drifting inexorably into the next recession owing to the deflationary collapse of commodities, capital spending and world trade. These are the inevitable “morning after” consequence of the 20-year global credit binge which has now reached its apogee. The apparent global boom during that period was actually a central bank driven excursion into the false economics of household borrowing to inflate consumption in the DM economies; and frenzied, uneconomic investing to inflate GDP in China and the EM. The common denominator was falsification of financial prices. By destroying honest price discovery in the financial markets, the world’s convoy of money-printing central banks led by the Fed elicited a huge excess of financialization relative to economic output.

Two years after the controversial appointment of Saudi Arabia to the U.N. Human Rights Council, leaked diplomatic cables have revealed the U.K. was a key player in the election of the Gulf State - despite the Saudis’ appalling human rights record. What is surprising is the next chapter in the farcical saga...