Vigilantes

Germany Submits To Sharia Law

A German court has ruled that seven Islamists who formed a vigilante patrol to enforce Sharia law on the streets of Wuppertal did not break German law and were simply exercising their right to free speech. The "politically correct" decision, which may be appealed, effectively authorizes the Sharia Police to continue enforcing Islamic law in Wuppertal.

Will The Swamp Swallow Trump?

"Yes, the parallels [with Reagan] are certainly there... I’ve been in touch with the Trump team. I’ve even written a book about Trump.... But those guys are going to be surprised. They just have no idea what they’re up against....I’ve seen it happen. There are alligators in that swamp."

Frontrunning: November 17

  • Dollar halts charge as bashed bonds steady (Reuters)
  • BOJ Fires Warning at Bond Market With Unlimited Buying Plan (BBG)
  • Trump Flouts Traditions Heading Into an Office Defined by Them (BBG)
  • Mr. Hedge Fund Goes to Washington, Looking for Ally in Trump (BBG)
  • Donald Trump’s Son-in-Law, Jared Kushner, Could Get Key White House Role (WSJ)

Bond Vigilantes Stir As Trump Team Hints At "Infrastructure Bank"

As part of Donald Trump's "fluid" proposals and trial balloons on how to implement his economic policies, adviser Steven Mnuchin told reporters on Wednesday that the Trump transition team is weighing an "infrastructure bank" to make investments in America's aging infrastructure. Mnuchin said that a "very big focus is regulatory changes, looking at the creation of an infrastructure bank to fund infrastructure investments” which to Wall Street was pure poetry as it heard just two words: "more debt.

Why All Eyes Are Suddenly Back On The Bank Of Japan

"If the BoJ sticks to defending zero in a world where the US is likely to increase fiscal spending then you could make an argument that there is full blown helicopter money except that the BoJ is flying the copter over the US and may be about to become the new US government’s best friend."

The First "Trump Thirty" Auction: Deplorable

If yesterday's 10Y and today's 30Y are indicative of how "easy", or rather difficult it will be to sell debt for the Trump administration, the market may want to significantly reign in its expectations for a $5 trillion incremental boost to the US debt, which at this rate will only happen if the Fed is out there scooping it up in yet another QE operation.

First "Trump Ten-Year" Auction Is A Near Debacle: Tail Spikes, Bid To Cover Tumbles

This was about as ugly an auction as we have seen in years, and if this is indicative of how the market will treat the Trump administration, we may find ourselves in an entirely new regime: one where the bond vigilantes take on not the Fed, but the president. Where have we seen that? Oh yes, in Italy in 2011. That particular episode resulted in the ouster of Berlusconi.

Civil War II - Fourth Turning Is Intensifying (Part 2)

The zombie economy is moribund, the productive people have been pillaged, and the bread and circus act is running on fumes. The American welfare/warfare state is crumbling. The ruling elite are desperate. They don’t want their Ponzi scheme to end, but they always fail. It’s a confidence game, and the game is over. The economic crisis is foreseeable to anyone with their eyes open. This empire will crumble and fall, just as others before throughout history.

Hugh Hendry Interviewed On His "Eureka Moment" Trade Of The Day, QE, China, The Dollar And Much More

In a recent interview with Macro Voices, Hugh Hendry is asked about the trade he has on in his fund, to which the Scotsman says that his team recently had a “eureka moment” and figured out how to design a trade, which has a negative carry when viewed in simple terms, such that they preserve the asymmetric of risk/reward while converting it to a positive-carry trade by adding another “European sovereign component to the trade”.

Is The US On The Verge Of Mass Race Riots?

Ferguson, Baltimore, Ferguson (again), Milwaukee, Charlotte. Much has been made by the media of the recent riots that have taken place across America. Which begs the question: Are these riots passing occurrences or, like a series of smaller seismic events, a forewarning of much larger mass civil unrest to come? For the answers, we take a quick trip back in time.