en Nigel Farage Batters Obama: "He Came To Britain And Behaved Disgracefully" <p>Back in April President Obama took a trip over to the UK in order to lecture another country on how to vote - Obama of course was staunchly in the Remain camp. Obama <a href="">even penned an op-ed</a> titled: &quot;As your friend, let me say that the EU makes Britain even greater.&quot;</p> <p>Of course, we all know the historic outcome of the Brexit vote, and <strong><a href="">we have even asked </a>if it was Barack Obama who actually was the deciding factor:</strong></p> <p><a href=""><img height="318" src="" width="600" /></a></p> <p>UKIP leader Nigel Farage has never been shy of course, but lately has been making sure to remember all of those who tried to downplay or influence the vote. For example, in his first appearance in the European Parliament since the Brexit vote,<a href=""> Farage took the time </a>to make sure the audience knew he hadn&#39;t forgotten that everyone laughed when Farage said that he was going to lead a campaign to get Britain to leave the EU, saying &quot;You&#39;re not laughing now are you.&quot;</p> <p>Farage hadn&#39;t forgotten Obama&#39;s attempt to influence the vote either. In a recent interview with Fox News, Farage was asked what can be done about Putin if the UK isn&#39;t in the EU, to which Farage raged that Obama had behaved disgracefully when compared to Putin.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;<strong>Well ultimately let me say this, Vladimir Putin behaved in a more statesmanlike manner than President Obama did in this referendum campaign</strong>. <span style="text-decoration: underline;"><strong>Obama came to Britain and I think behaved disgracefully, telling us we&#39;d be at the back of the queue</strong></span>. Treating us, America&#39;s strongest, oldest ally, in this extraordinary way. Vladimir Putin maintained his silence throughout the whole campaign.&quot;</p> </blockquote> <p><iframe frameborder="0" height="315" src="" width="560"></iframe></p> <p>* * *</p> <p>Oh that does it, Obama won&#39;t be inviting Farage on any of the remaining 36-hold golf outings!</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="724" height="384" alt="" src="" /> </div> </div> </div> Barack Obama Fox News President Obama Vladimir Putin Wed, 29 Jun 2016 02:20:00 +0000 Tyler Durden 564734 at Doug Casey Debunks The Common Excuses for "Staying" In One Country <p><a href=""><em>Submitted by Doug Casey via,</em></a></p> <p>Tell a person that it&#39;s a big beautiful world, full of fresh opportunities and a sense of freedom that is just not available by staying put and you will <strong>inevitably be treated to a litany of reasons why expanding your life into more than one country just isn&#39;t practical</strong>.</p> <p>Let&#39;s consider some of those commonly stated reasons, and why they might be unjustified. While largely directed at Americans, these are also applicable to pretty much anyone from any country (for example, Britain... or Germany).</p> <p><strong>&quot;America is the best country in the world. I&#39;d be a fool to leave.&quot;</strong></p> <p>That was absolutely true, not so very long ago. America certainly was the best &ndash; and it was unique. But it no longer exists, except as an ideal. The geography it occupied has been co-opted by the United States, which today is just another nation-state. And, most unfortunately, one that&#39;s become especially predatory toward its citizens.</p> <p><strong>&quot;My parents and grandparents were born here; I have roots in this country.&quot;</strong></p> <p>An understandable emotion; everyone has an atavistic affinity for his place of birth, including your most distant relatives born long, long ago, and far, far away. I suppose if Lucy, apparently the first more-or-less human we know of, had been able to speak, she might have pled roots if you&#39;d asked her to leave her valley in East Africa. If you buy this argument, then it&#39;s clear your forefathers, who came from Europe, Asia, or Africa, were made of sterner stuff than you are.</p> <p><strong>&quot;I&#39;m not going to be unpatriotic.&quot;</strong></p> <p>Patriotism is one of those things very few even question and even fewer examine closely. I&#39;m a patriot, you&#39;re a nationalist, he&#39;s a jingoist. But let&#39;s put such a tendentious and emotion-laden subject aside. Today a true patriot &ndash; an effective patriot &ndash; would be accumulating capital elsewhere, to have assets he can repatriate and use for rebuilding when the time is right. And a real patriot understands that America is not a place; it&#39;s an idea. It deserves to be spread.</p> <p><strong>&quot;I can&#39;t leave my aging mother behind.&quot;</strong></p> <p>Not to sound callous, but your aging parent will soon leave you behind. Why not offer her the chance to come along, though? She might enjoy a good live-in maid in your own house (which I challenge you to get in the U.S.) more than a sterile, dismal, and overpriced old people&#39;s home, where she&#39;s likely to wind up.</p> <p><strong>&quot;I might not be able to earn a living.&quot;</strong></p> <p>Spoken like a person with little imagination and even less self-confidence. And likely little experience or knowledge of economics. Everyone, everywhere, has to produce at least as much as he consumes &ndash; that won&#39;t change whether you stay in your living room or go to Timbuktu. In point of fact, though, it tends to be easier to earn big money in a foreign country, because you will have knowledge, experience, skills, and connections the locals don&#39;t.</p> <p><strong>&quot;I don&#39;t have enough capital to make a move.&quot;</strong></p> <p>Well, that was one thing that kept serfs down on the farm. Capital gives you freedom. On the other hand, a certain amount of poverty can underwrite your freedom, since possessions act as chains for many.</p> <p><strong>&quot;I&#39;m afraid I won&#39;t fit in.&quot;</strong></p> <p>The real danger that&#39;s headed your way is not fitting in at home. This objection is often proffered by people who&#39;ve never traveled abroad. Here&#39;s a suggestion. If you don&#39;t have a valid passport, apply for one tomorrow morning. Then, at the next opportunity, book a trip to somewhere that seems interesting. Make an effort to meet people. Find out if you&#39;re really as abject a wallflower as you fear.</p> <p><strong>&quot;I don&#39;t speak the language.&quot;</strong></p> <p>It&#39;s said that Sir Richard Burton, the 19th century explorer, spoke 10 languages fluently and 15 more &quot;reasonably well.&quot; I&#39;ve always liked that distinction although, personally, I&#39;m not a good linguist. And it gets harder to learn a language as you get older &ndash; although it&#39;s also true that learning a new language actually keeps your brain limber. In point of fact, though, English is the world&#39;s language. Almost anyone who is anyone, and the typical school kid, has some grasp of it.</p> <p><strong>&quot;I&#39;m too old to make such a big change.&quot;</strong></p> <p>Yes, I guess it makes more sense to just take a seat and await the arrival of the Grim Reaper. Or perhaps, is your life already so exciting and wonderful that you can&#39;t handle a little change? Better, I think, that you might adopt the attitude of the 85-year-old woman who has just transplanted herself to Argentina from the frozen north. Even after many years of adventure, she simply feels ready for a change and was getting tired of the same old people with the same old stories and habits.</p> <p><strong>&quot;I&#39;ve got to wait until the kids are out of school. It would disrupt their lives.&quot;</strong></p> <p>This is actually one of the lamest excuses in the book. I&#39;m sympathetic to the view that kids ought to live with wolves for a couple of years to get a proper grounding in life &ndash; although I&#39;m not advocating anything that radical. It&#39;s one of the greatest gifts you can give your kids: to live in another culture, learn a new language, and associate with a better class of people (as an expat, you&#39;ll almost automatically move to the upper rungs &ndash; arguably a big plus). After a little whining, the kids will love it. When they&#39;re grown, if they discover you passed up the opportunity, they won&#39;t forgive you.</p> <p><strong>&quot;I don&#39;t want to give up my U.S. citizenship.&quot;</strong></p> <p>There&#39;s no need to. Anyway, if you have a lot of deferred income and untaxed gains, it can be punitive to do so; the U.S. government wants to keep you as a milk cow. But then, you may cotton to the idea of living free of any taxing government while having the travel documents offered by several. And you may want to save your children from becoming cannon fodder or indentured servants should the U.S. re-institute the draft or start a program of &quot;national service&quot; &ndash; which is not unlikely.</p> <p><u><strong>But these arguments are unimportant. The real problem is one of psychology.</strong></u> In that regard, I like to point to my old friend Paul Terhorst, who 30 years ago was the youngest partner at a national accounting firm. He and his wife, Vicki, decided that &quot;keeping up with the Joneses&quot; for the rest of their lives just wasn&#39;t for them. They sold everything &ndash; cars, house, clothes, artwork, the works &ndash; and decided to live around the world. Paul then had the time to read books, play chess, and generally enjoy himself. He wrote about it in&nbsp;<em>Cashing In on the American Dream: How to Retire at 35</em>. As a bonus, the advantages of not being a tax resident anywhere and having time to scope out proper investments has put Paul way ahead in the money game. He typically spends about half his year in Argentina; we usually have lunch every week when in residence.</p> <p><u><strong>I could go on. But perhaps it&#39;s pointless to offer rational counters to irrational fears and preconceptions.</strong></u> As Gibbon noted with his signature brand of irony,<em><strong> &quot;The power of instruction is seldom of much efficacy, except in those happy dispositions where it is almost superfluous.&quot;</strong></em></p> <p>Let me be clear: <u><em><strong>in my view, the time to internationally diversify your life is getting short. And the reasons for looking abroad are changing.</strong></em></u></p> <p>In the past, the best argument for expatriation was an automatic increase in one&#39;s standard of living. In the &#39;50s and &#39;60s, a book called&nbsp;<em>Europe on $5 a Day</em> accurately reflected all-in costs for a tourist. In those days a middle-class American could live like a king in Europe. But those days are long gone. Now it&#39;s the rare American who can afford to visit Europe except on a cheesy package tour. That situation may actually improve soon, if only because the standard of living in Europe is likely to fall even faster than in the U.S. But the improvement will be temporary. One thing you can plan your life around is that, for the average American, foreign travel is going to become much more expensive in the next few years as the dollar loses value at an accelerating rate.</p> <p>Affordability is going to be a real problem for Americans, who&#39;ve long been used to being the world&#39;s &quot;rich guys.&quot; But an even bigger problem will be presented by foreign exchange controls of some nature, which the government will impose in its efforts to &quot;do something.&quot; FX controls &ndash; perhaps in the form of taxes on money that goes abroad, perhaps restrictions on amounts and reasons, perhaps the requirement of official approval, perhaps all of these things &ndash; are a natural progression during the next stage of the crisis. After all, only rich people can afford to send money abroad, and only the unpatriotic would think of doing so.</p> <h3><u><strong>How and Where</strong></u></h3> <p>I would like to reemphasize that it&rsquo;s pure foolishness to have your loyalties dictated by the lines on a map or the dictates of some ruler.<strong> The nation-state itself is on its way out.</strong> The world will increasingly be aligned with what we call phyles, groups of people who consider themselves countrymen based on their interests and values, not on which government&#39;s ID they share. I believe the sooner you start thinking that way, the freer, the richer, and the more secure you will become.</p> <p><strong>The most important first step is to get out of the danger zone.</strong> Let&rsquo;s list the steps in order of importance.</p> <ol> <li> <p>Establish a financial account in a second country and transfer assets to it immediately.</p> </li> <li> <p>Purchase a crib in a suitable third country, somewhere you might enjoy whether in good times or bad.</p> </li> <li> <p>Get moving toward an alternative citizenship in a fourth country; you don&#39;t want to be stuck geographically, and you don&#39;t want to live like a refugee.</p> </li> <li> <p>Keep your eyes open for business and investment opportunities in those four countries, plus the other 195; you&#39;ll greatly increase your perspective and your chances of success.</p> </li> </ol> <p>Where to go?</p> <p>The personal conclusion I came to was Argentina (followed by Uruguay), where I spend a good part of my year and even more now that my house at&nbsp;<a href="" target="_blank">La Estancia de Cafayate</a>&nbsp;is completed.</p> <p><strong><em>In general, I would suggest you look most seriously at countries whose governments aren&#39;t overly cozy with the U.S. and whose people maintain an inbred suspicion of the police, the military, and the fiscal authorities. These criteria tilt the scales against past favorites like Australia, New Zealand, Canada, and the UK.</em></strong></p> <p>And one more piece of sage advice: stop thinking like your neighbors, which is to say stop thinking and acting like a serf. Most people &ndash; although they can be perfectly affable and even seem sensible &ndash; have the attitudes of medieval peasants that objected to going further than a day&#39;s round-trip from their hut, for fear the stories of dragons that live over the hill might be true. We covered the modern versions of that objection a bit earlier.</p> <p>I&#39;m not saying that you&#39;ll make your fortune and find happiness by venturing out. But you&#39;ll greatly increase your odds of doing so, greatly increase your security, and, I suspect, have a much more interesting time.</p> <p>Let me end by reminding you what Rick Blaine, Bogart&#39;s character in&nbsp;<em>Casablanca</em>, had to say in only a slightly different context. Appropriately, Rick was an early but also an archetypical international man. Let&#39;s just imagine he&#39;s talking about what will happen if you don&#39;t effectively internationalize yourself now. He said:<em><strong> &quot;You may not regret it now, but you&#39;ll regret it soon. And for the rest of your life.&quot;</strong></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="576" height="357" alt="" src="" /> </div> </div> </div> Australia Germany New Zealand Wed, 29 Jun 2016 01:50:00 +0000 Tyler Durden 564743 at Bernie Sanders: The World Is Rejecting Globalization <p><a href=""><em>Authored by Bernie Sanders, originally posted Op-Ed via The NY Times,</em></a></p> <p class="p-block"><strong>Surprise, surprise. Workers in Britain, many of whom have seen a decline in their standard of living while the very rich in their country have become much richer, have turned their backs on the European Union and a globalized economy that is failing them and their children.</strong></p> <p class="p-block"><span style="text-decoration: underline;"><strong>And it&rsquo;s not just the British who are suffering. </strong></span>That increasingly globalized economy, established and maintained by the world&rsquo;s economic elite, is failing people everywhere. Incredibly, <a href="">the wealthiest 62 people on this planet own</a> as much wealth as the bottom half of the world&rsquo;s population &mdash; around 3.6 billion people. The top 1 percent now owns more wealth than the whole of the bottom 99 percent. The very, very rich enjoy unimaginable luxury while billions of people endure abject poverty, unemployment, and inadequate health care, education, housing and drinking water.</p> <p class="p-block"><strong>Could this rejection of the current form of the global economy happen in the United States? You bet it could.</strong></p> <p class="p-block">During my campaign for the Democratic presidential nomination, I&rsquo;ve visited 46 states. <u><strong>What I saw and heard on too many occasions were painful realities that the political and media establishment fail even to recognize</strong></u>.</p> <p class="p-block">In the last 15 years, nearly 60,000 factories in this country have closed, and <strong><a href=""> more than 4.8 million</a> well-paid manufacturing jobs have disappeared</strong>. Much of this is related to disastrous trade agreements that encourage corporations to move to low-wage countries.</p> <p class="p-block">Despite major increases in productivity, the<strong> <a href="">median male worker</a> in America today is making $726 dollars less than he did in 1973</strong>, while the median female worker is making $1,154 less than she did in 2007, after adjusting for inflation.</p> <p class="p-block"><strong><em>Nearly 47 million Americans live in poverty. An estimated <a href="">28</a><a href=""> million</a> have no health insurance, while many others are underinsured. Millions of people are struggling with outrageous levels of student debt. For perhaps the first time in modern history, our younger generation will probably have a lower standard of living than their parents. Frighteningly, millions of poorly educated Americans will have a shorter life span than the previous generation as they succumb to despair, drugs and alcohol.</em></strong></p> <p class="p-block"><u><strong>Meanwhile, in our country the top one-tenth of 1 percent now owns almost as much wealth as the bottom 90 percent.</strong></u> <a href="">Fifty-eight percent</a> of all new income is going to the top 1 percent. Wall Street and billionaires, through their &ldquo;super PACs,&rdquo; are able to buy elections.<span style="max-width: 300px;"> </span></p> <p class="p-block">On my campaign, I&rsquo;ve talked to workers unable to make it on $8 or $9 an hour; retirees struggling to purchase the medicine they need on $9,000 a year of Social Security; young people unable to afford college. I also visited the American citizens of Puerto Rico, where some 58 percent of the children live in poverty and only a little more than 40 percent of the adult population has a job or is seeking one.</p> <p class="p-block"><u><strong>Let&rsquo;s be clear. The global economy is not working for the majority of people in our country and the world. This is an economic model developed by the economic elite to benefit the economic elite. We need real change.</strong></u></p> <p class="p-block">But we do not need change based on the demagogy, bigotry and anti-immigrant sentiment that punctuated so much of the Leave campaign&rsquo;s rhetoric &mdash; and is central to Donald J. Trump&rsquo;s message.</p> <p class="p-block">We need a president who will vigorously support international cooperation that brings the people of the world closer together, reduces hypernationalism and decreases the possibility of war. <strong>We also need a president who respects the democratic rights of the people, and who will fight for an economy that protects the interests of working people, not just Wall Street, the drug companies and other powerful special interests.</strong></p> <p class="p-block"><strong>We need to fundamentally reject our &ldquo;free trade&rdquo; policies and move to fair trade. </strong>Americans should not have to compete against workers in low-wage countries who earn pennies an hour. We must defeat the Trans-Pacific Partnership. We must help poor countries develop sustainable economic models.</p> <p class="p-block">We need to end the international scandal in which <strong>large corporations and the wealthy avoid paying trillions of dollars in taxes</strong> to their national governments.</p> <p class="p-block">We need to create tens of millions of jobs worldwide by combating global climate change and by transforming the world&rsquo;s energy system away from fossil fuels.</p> <p class="p-block"><strong>We need international efforts to cut military spending around the globe and address the causes of war: poverty, hatred, hopelessness and ignorance.</strong></p> <p class="p-block"><u><strong>The notion that Donald Trump could benefit from the same forces that gave the Leave proponents a majority in Britain should sound an alarm for the Democratic Party in the United States</strong></u>. Millions of American voters, like the Leave supporters, are understandably angry and frustrated by the economic forces that are destroying the middle class.</p> <p class="p-block">In this pivotal moment, the Democratic Party and a new Democratic president need to make clear that we stand with those who are struggling and who have been left behind. <u><em><strong>We must create national and global economies that work for all, not just a handful of billionaires.</strong></em></u></p> <p>* * *</p> <p>In other words - unless Hillary can put her special interest crony-capitalist history behind her (and impossible task against Trump&#39;s &#39;take no prisoners&#39; approach) she will have to distract (to standa chance) by putting Bernie on the ticket as VP... Or Trump&#39;s gonna win.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="612" height="342" alt="" src="" /> </div> </div> </div> Bernie Sanders Donald Trump European Union Fail Global Economy Nomination Puerto Rico Unemployment Wed, 29 Jun 2016 01:20:00 +0000 Tyler Durden 564746 at In Gold We Trust, 2016 Edition <p><a href=""><em>Submitted by Pater Tenebrarum via,</em></a></p> <h3><strong>The 10<sup>th</sup> Anniversary Edition of the &ldquo;In Gold We Trust&rdquo; Report</strong></h3> <p>As every year at the end of June, our good friends Ronald Stoeferle and Mark Valek, the managers of the Incrementum funds, have released the <em>In Gold We Trust</em> report, one of the most comprehensive and most widely read gold reports in the world. The report can be downloaded further below.</p> <p>&nbsp;</p> <p style="text-align: center;"><img alt="Gold, daily" class="aligncenter wp-image-45615" height="435" src="" width="640" /></p> <p style="text-align: center;">Gold, daily, over the past year &ndash; click to enlarge.</p> <p>The report celebrates its 10<sup>th</sup> anniversary this year. As always, a wide variety of gold-related topics is discussed, providing readers with a wealth of valuable and intellectually stimulating information. <strong>This year&rsquo;s report inter alia includes a detailed discussion of gold&rsquo;s properties in terms of Nicholas Nassim Taleb&rsquo;s &ldquo;fragility/ robustness/ anti-fragility&rdquo; matrix, as well as close look at the last resort of mad-cap central planners that goes by the moniker &ldquo;helicopter money&rdquo;.</strong></p> <p>Since falling to a new multi-year low amid growing despondency and a crescendo of bearishness late last year,&nbsp; gold has celebrated a rather noteworthy comeback. As our regular readers know, we pointed to many subtle signs that indicated to us that a trend change might soon be afoot as the low approached (particularly in gold stocks, see e.g. &ldquo;<a href="">Gold and Gold Stocks, it Gets Even More Interesting</a>&rdquo; or &ldquo;<a href="">The Canary in the Gold Mine</a>&rdquo; for some color on this).</p> <p>Ronald and Mark are <em>inter alia</em> looking into the <strong>question whether gold&rsquo;s recent comeback marks the resumption of the secular bull market, and which factors are likely to drive precious metals in coming years</strong>. As they correctly argue, the increasing desperation of central bankers and their willingness to boost inflation at all cost is going to lead to a plethora of unintended consequences, all of which are likely to boost the gold price.</p> <p>They also shed light on one issue that&nbsp; &ndash; apart from a handful of exceptions &ndash;&nbsp; is clearly not on anyone&rsquo;s radar screen at the moment: namely the possibility that central banks might finally &ldquo;succeed&rdquo;. In other words, the possibility that gold&rsquo;s recent rise is actually the harbinger of another event widely regarded as &ldquo;impossible&rdquo; &ndash; the return of price inflation.</p> <p>In this context, we want to reproduce a chart from the report, which <strong>shows the proprietary Incrementum inflation signal vs. the gold price and a number of other inflation-sensitive assets. </strong>As can be seen, the signal has flipped rather forcefully toward inflation, after having been stuck for several years in &ldquo;disinflation/ deflation&rdquo; territory.</p> <p style="text-align: center;"><a href="" target="_blank"><img alt="Incrementum signal" class="aligncenter wp-image-45616" height="366" src="" width="640" /></a></p> <p style="text-align: center;">The Incrementum Inflation Signal vs. inflation-sensitive assets &ndash; click to enlarge.</p> <p>&nbsp;</p> <p><strong>This incidentally jibes with the <em>ECRI Future Inflation Gauge,</em> which has recently reached a new multi-year high as well.</strong> As can probably be imagined, if the message of these signals is actually borne out, central banks will be facing quite a quandary. It also has potentially far-reaching implications for investors of all stripes, which the report discusses extensively as well.</p> <p><strong>&nbsp;</strong></p> <h3><strong>Conclusion and Download Link</strong></h3> <p>We are certain that our readers will find this year&rsquo;s <em>In Gold We Trust</em> report just as interesting and entertaining as its predecessors. In fact, we believe the anniversary report is an especially well done issue. Enjoy!</p> <p><a href="">Full PDF can be downloaded here,</a> or read below...</p> <p style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; display: block;"><a href="" style="text-decoration: underline;" title="View In Gold We Trust 2016-Extended Version on Scribd">In Gold We Trust 2016-Extended Version</a></p> <p><iframe frameborder="0" height="600" scrolling="no" src=";view_mode=scroll&amp;show_recommendations=true&amp;show_upsell=true" width="100%"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="586" height="357" alt="" src="" /> </div> </div> </div> Central Banks Nassim Taleb Precious Metals Wed, 29 Jun 2016 00:50:00 +0000 Tyler Durden 564742 at WTF Chart Of The Day: When Central Planning Fails <p>Things have not been going according to plan for Kuroda-san and his policy-making 'Peter-Pan's in Japan. Since The Bank of Japan unleashed NIRP on its 'saving' community - which, according to the textbooks would force money to reach for riskier investments, pumping stocks up, or flush cash into inflationary consumption - stock prices have collapsed and bond prices have exploded... <em><strong>In fact, in six months, bonds are outperforming stocks by a central-bank-credibility-crushing 70%!!!</strong></em></p> <p>Rate cuts...not working</p> <p><a href=""><img src="" width="600" height="318" /></a></p> <p><em>h/t @jsblokland</em></p> <p>And it's not just The BoJ that is struggling - since The Fed hiked rates, The S&amp;P is down 3.5% and Treasuries are up 16%!!</p> <p><a href=""><img src="" width="600" height="316" /></a></p> <p>&nbsp;</p> <p>2016 - The year when the central-planners were finally exposed!!</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="959" height="508" alt="" src="" /> </div> </div> </div> Bank of Japan Bond Japan Wed, 29 Jun 2016 00:20:00 +0000 Tyler Durden 564733 at Juncker Refuses To Speak English In Address To EU Parliament <p>While both Angela Merkel and David Cameron, and perhaps Boris Johnson, have been doing all they can to restore some of the badly burned bridges between the UK and Europe over the past week, the European Commission president, Jean-Claude Juncker, perhaps once again under the influence, is seemingly engaged in a one-man crusade to accelerate and crush any last hope of an amicable UK departure with lingering ties to Europe. </p> <p><a href=""><img src="" width="500" height="334" /></a></p> <p>As we <a href="">reported earlier</a>, Juncker pulled a fast one on the EU parliament when he first said that "we must respect British democracy and the way it has expressed its view," a statement that was greeted by rare applause from the UKIP members present. However, Juncker promptly turned the tables when he said "that's the last time you are applauding here... and to some extent I'm really surprised you are here. You are fighting for the exit. The British people voted in favor of the exit. <strong>Why are you here</strong>?" Juncker continued, breaking from his speech text.</p> <p>Then, according to a <a href="">Telegraph correspondent</a>, Juncker added that he has imposed a Presidential Ban on all contact between EU officials and UK officials until Art 50.</p> <p>But the coup de grace, to use the proper language, came <a href="">when as AP reported</a>, Juncker decided to refuse speaking in English altogether. In contrast to recent speeches on Britain's future in the European Union, European Commission President Jean-Claude Juncker didn't speak English Tuesday as he lamented the U.K.'s departure from the bloc.</p> <p>Juncker's official speech to EU lawmakers was made only in French and German. <strong>He did, however, respond to hecklers among the British EU lawmakers in English.</strong></p> <p>Previously, Juncker has often used the EU's most widely spoken and written language as well, particularly when addressing issues close to British hearts.</p> <p>It's unclear whether the move was a political message from one of Europe's longest serving leaders, or an act of caution due to criticism he has received for making mistakes in English in the past.</p> <p>Whatever the motivation, it almost appears that Juncker is doing everything in his power to sabotage any lingering hope of some last minute mending of relations between the EU and the UK. </p> <p>* * * </p> <p>Meanwhile, the fate of the UK aside, the blowback inside Europe is growing and now the prime ministers of four central European countries say the European Union needs to be reformed to renew the trust of citizens in its institutions. <strong>The prime ministers of the Czech Republic, Hungary, Poland and Slovakia also said the forthcoming exit negotiations between the EU and Britain must not leave EU members and their businesses in a worse position than Britain and its companies</strong>. </p> <p>They said the EU should focus on economic growth, an increase of prosperity and the development of a common security policy. The four countries form an informal bloc known as the Visegrad Group and released a joint statement ahead of a summit of EU leaders in Brussels Tuesday.</p> <p>What was left unsaid is that the balance of power has now shifted dramatically, and what was once Merkel's sole domain now sees the periphery as gradually dominating all negotiations thanks to the impromtpy threat of a referendum that any one nation may invoke at a moment's notice. In the aftermath of Brexit, this is a threat that Merkel and Brussels have no choice but to do everything in their power to remedy, even if it means succumbing to every single demand. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="634" height="423" alt="" src="" /> </div> </div> </div> Czech European Union Hungary Poland Slovakia Wed, 29 Jun 2016 00:19:03 +0000 Tyler Durden 564711 at Why Barclays Thinks The V-Shaped Recovery Is Dead: "Massive Redemptions Are Coming" <p>While one can speculate about the causes of today's global risk-on rally (as we did earlier today on <a href="">two</a> <a href="">occasions</a>), a more important question is whether after the recent historic rout (which as shown yesterday <a href="">surpassed the volatility of the 2008 </a>great financial crisis for various, mostly FX-linked assets), stock markets will simply brush it off, forget about all that's happened and as has been the case all too often in the past several years, <em>surge in yet another V-shaped recovery. </em></p> <p>According to Barclays, the answer is no.</p> <p>As the firm's equity strategist, Keith Parker, writes today, active investors considerably increased risk exposures in the week leading up to the UK referendum. That trade did not play out as expected, and as a result this is where active money managers (MFs and HFs) find themselves now:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"By our measures, aggregate equity positioning by active managers is again near post-crisis highs <strong>as the market braces itself for a potential acceleration in redemptions after the equity collapse</strong>. With cash levels at equity MFs fairly low and net cyclical sector positioning near the highs, we believe managers are unprepared for outflows and lengthy risk aversion. Although there is cash on the sidelines, the current environment of heightened uncertainty gives rise to a “buyer’s strike” as investors wait for a sufficient value cushion to open up before deploying precious dry powder. Finally, short interest has considerable room to rise across cash equities, ETFs and futures."</p> </blockquote> <p>Barclays goes on to add that it sees scope for "<strong>positioning to turn much more defensive at active managers and for equity outflows to pick up."</strong></p> <p>And the biggest wildcard, and the reason why we suggested recently BofA's "smart money" clients have pulled money in 21 of the past 22 weeks, not just existing redemption requests, <strong>but the threat of a surge in "massive redemptions" over the next few months. </strong>Here is Barclays: "<strong>Weak active manager performance YTD increases the risk of even larger redemptions in H2."</strong><br /><a href=""><img src="" width="500" height="360" /></a></p> <p>&nbsp;</p> <p>The bank's conclusion: "<strong>The positioning overhang coupled with the ‘prove it mindset’ of investors now, points to further equity downside risk as well as a prolonged market bottoming process like we saw in 2011-12, <span style="text-decoration: underline;">rather than the v-shaped rebounds</span> that have characterized equity markets of late (like January).</strong>"</p> <p>* * * </p> <p>Finally, since this is a touchy topic for countless 17-year-old hedge fund managers whose only trading strategy during this "business cycle" has been to BTFD, here is Barclays' summary of the key points:</p> <ul> <li><strong>Composite equity positioning is 2std above average, at the post crisis highs</strong>. Funds increased risk exposure considerably in the week leading up to the referendum. US MFs and balanced funds are the most exposed currently, while Europe funds went from underweight to neutral.</li> </ul> <p><a href=""><img src="" width="500" height="326" /></a></p> <p><a href=""><img src="" width="500" height="332" /></a></p> <p>&nbsp;</p> <ul> <li><strong>Rebalance bid for equities at the end of month/quarter is unlikely to be material</strong>. Our implied US equity vs. bond allocation proxy is still well above recent lows as US equities are down just 3% in Q2. Additionally, the relative spike in equity vol vs. bond vol does not point to net equity buying by multi-asset funds. <strong>The rebalance bid may be more pronounced outside the US where the selloff was more acute</strong>.</li> </ul> <p><a href=""><img src="" width="500" height="374" /></a></p> <p>&nbsp;</p> <ul> <li><strong>Elevated equity fund betas combined with redemptions fuelled prior selloffs</strong>. US equity MF beta is 2.5std above average despite equity MF redemptions running $30-40bn a month. The selloffs in 2011 and 2012 were preceded by elevated MF beta, underperformance, and redemptions – which then helped fuel the corrections. </li> </ul> <p><a href=""><img src="" width="500" height="360" /></a></p> <p><a href=""><img src="" width="500" height="332" /></a></p> <p>&nbsp;</p> <ul> <li><strong>Short interest has considerable room to rise</strong>. S&amp;P 500 short interest in single stocks is at 2.15% compared to about 2.4% at the recent highs; <strong>this implies nearly $50bn in potential selling pressure</strong>. ETF short interest is also at all-time lows and a rise to September levels would also imply about $50bn of selling pressure. Finally, S&amp;P futures positioning is net long, compared to being net short in February.</li> </ul> <p><a href=""><img src="" width="500" height="337" /></a></p> <p><a href=""><img src="" width="500" height="309" /></a></p> <p>&nbsp;</p> <ul> <li><strong>Sector positioning turned much more cyclical heading into the referendum</strong>. Net cyclical minus defensive positioning by our measures has risen toward the highs, and is reversing. US equity MFs are the most cyclically positioned while global MFs and long-short equity HFs are closer to neutral.</li> </ul> <p><a href=""><img src="" width="500" height="354" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="771" height="555" alt="" src="" /> </div> </div> </div> Barclays Bond Equity Markets recovery Short Interest Smart Money Volatility Wed, 29 Jun 2016 00:12:06 +0000 Tyler Durden 564708 at CCTV Camera Captures Moment Of Istanbul Airport Explosion As Suicide Attacker Blows Himself Up <p>The following video, <a href="">courtesy of Mahir Zeynalov</a>, shows the precise moment when at least one of the two Ataturk Airport explosions took place. Viewer discretion advised.</p> <blockquote class="twitter-video"><p dir="ltr" lang="en">The moment of the attack at the Istanbul airport. Horrific. <a href=""></a></p> <p>— Mahir Zeynalov (@MahirZeynalov) <a href="">June 28, 2016</a></p></blockquote> <script src="//"></script><p>&nbsp;</p> <p>And a second video shows the moment the Istanbul attacker was shot and set off his suicide vest</p> <p>&nbsp;</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Another security footage shows a Turkish police officer shoots down one of the three suicide bombers. <a href=""></a></p> <p>— Mahir Zeynalov (@MahirZeynalov) <a href="">June 28, 2016</a></p></blockquote> <script src="//"></script> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="320" height="192" alt="" src="" /> </div> </div> </div> Twitter Twitter Wed, 29 Jun 2016 00:07:30 +0000 Tyler Durden 564730 at The Crackdown Begins: Chinese Bank Sues To Seize Vancouver Real Estate Assets <p>From the very beginning of Vancouver's housing boom episode courtesy of an invasion of shady Chinese hot-money laundering home buyers, which has now officially driven the average list price of Vancouver single homes above $4 million...</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">For the first time ever, the average list price of a single family house in the City of Vancouver is now over $4,000,000.</p> <p>— Vancouver Market (@vancouvermrkt) <a href="">June 25, 2016</a></p></blockquote> <script src="//"></script><p>... we have wondered how long before the Chinese government and financial institutions, if not Canada's local authorities which apparently have no problem with a soaring housing bubble in their midst, finally crack down on these flagrant violators of China's capital controls, whose children have been so openly flaunting their parent's illicit wealth as reported in "<a href="">My Daddy’s Rich And My Lamborghini’s Good-Looking": Meet The Rich Chinese Kids Of Vancouver</a>."</p> <p>We now have the answer. </p> <p>According to the <a href="">Globe and Mail</a>, China CITIC Bank has filed a lawsuit in Canada to try to seize the assets of a Chinese citizen the bank claims took out a $10 million loan in China then fled to Canada. </p> <p>In a first of its kind attempt at intercontinental repossession, the bank is looking to seize numerous Vancouver-area homes, valued at at least $7.3-million, along with other assets, according to the lawsuit, which was filed in the Supreme Court of British Columbia in Vancouver on Friday.</p> <p><a href=""><img src="" width="500" height="281" /></a><br /><em>This $3.5 million home in Surrey B.C. is one of four homes a Chinese bank </em><br /><em>claims are owned by a fugitive who defaulted on a $10 million loan.</em></p> <p>The defendant, Shibiao Yan, owns three multimillion-dollar properties in a Vancouver suburb and lives in a $3-million Vancouver home owned by his wife, according to court documents, the Globe and Mail reports.</p> <p>China has been in the midst of a major corruption crackdown and has stepped up efforts to find fugitives it says are hiding stolen assets abroad. In which case it will have lots of fruitful leads in Vancouver where virtually all real-estate purchases over the past year by Chinese "figutivies." The lawsuit comes amid a debate about the role foreign money, particularly from China, has played in Vancouver’s property boom.</p> <p>“The person involved left China with a large debt owed,” said Christine Duhaime, a lawyer who represents China CITIC Bank in the case, adding that she was not aware of any criminal charges against the man. Yan has not yet filed a response to the lawsuit and the claims have not been proven in court. We doubt he will appear.</p> <p>Duhaime&nbsp; would not comment on the proceedings, but tweeted that the case was of <strong>"global significance for China"</strong>. The reason is clear: it sets a precedent for many future such lawsuits, and confiscations.</p> <p>As <a href="">CBC adds</a>, last week, Justice Gregory Bowden issued a temporary Mareva injunction against Yan, freezing his assets as the bank tries to make good on an arbitration ruling it claims to have obtained in March, ordering Yan to pay RMB 50 million plus RMB 2 million interest. According to the court documents, Yan incorporated a company in B.C. called TYMY Investments in March 2014, and his 36-year-old wife paid $2.5 million for a house in Vancouver a month later. </p> <p>China has been working with Canada for years to finalize a deal on the return of ill-gotten assets seized from those suspected of economic crimes. The agreement was originally announced in July 2013 and has not yet been ratified.</p> <p>But, as G&amp;M notes, it is rare for Chinese banks to use Canadian courts to pursue those who have left the country. Chinese Foreign Ministry spokesman Hong Lei said the bank was protecting its rights in accordance with the law.</p> <p>“This is a normal thing to do internationally,” Hong told reporters in Beijing. </p> <p>According to the lawsuit, China CITIC Bank is seeking repayment for a line of credit worth 50 million yuan, or roughly $7.5-million, taken out by a Chinese lumber company and personally guaranteed by Yan, who was the company’s majority shareholder at the time. </p> <p>Just like this website, Vancouver residents have questioned the legitimacy of foreign funds invested in the city’s real estate market and have urged authorities to do more to scrutinize their origin. </p> <p>So far Vancouver authorities have done a terrible job of responding to these requests, and as a result housing prices in the west coast city have jumped 30 per cent in the last year, in the process pricing out virtually all local buyers, especially since in recent weeks local banks have clamped down on the issuance of mortgages for the luxury sectory, well aware that the bubble is about to burst.</p> <p>And since Canada would do nothing to hinder the parking of hot Chinese money locally, China decided to take matters into its own hands. If successful, and it will be as we doubt Mr. Yan will dare to appear in court resulting in a prompt confiscation of his assets, the action will have a chilling effect on all future purchases, and will most likely lead to a selling avalanche as the Chinese elite in Vancouver scramble to offload its domestic assets and find a new safe haven where it can park its money for the next few years.</p> <p>In other words, with CITIC's lawsuit, the beginning of the end of Vancouver's housing bubble has officially begun.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="620" height="349" alt="" src="" /> </div> </div> </div> B+ China Corruption Housing Bubble Housing Prices Real estate Yuan Wed, 29 Jun 2016 00:05:59 +0000 Tyler Durden 564739 at Clinton's Plan For Millennials: Loan Forgiveness <p>If Bernie Sanders and his supporters are still waiting to see <strong>whether or not Hillary Clinton is willing to move far enough left on some issues</strong>, the release of Clinton&#39;s Tech &amp; Innovation Agenda yesterday should<strong> make everyone a little bit less concerned</strong>.</p> <p><a href=""><img height="437" src="" width="600" /></a></p> <p>According to the Clinton campaign <a href="">website</a>, Hillary&#39;s Tech &amp; Innovation Agenda has five key parts, much of which Clinton has touched on in the past. However as Wired <a href="">reports</a>, there are a few new proposals as well, including deferring student loans interest free and loan forgiveness in general.</p> <p>From <a href="">Wired</a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The presumptive Democratic nominee has touched on tech issues in an ad hoc way before, urging Silicon Valley to help fight radicalization online and calling for greater protection for on-demand workers. This is the first time, however, that Clinton&mdash;or any presidential candidate for that matter&mdash;is synthesizing these ideas into a comprehensive platform.</p> <p>&nbsp;</p> <p>Though many pieces of the agenda are policy prescriptions Clinton has announced in the past, including a plan to bring broadband access to every American home by 2020, the tech platform includes newer proposals as well. <strong>Her plan would, for instance, allow would-be entrepreneurs to <span style="text-decoration: underline;">defer their student loans interest free for up to three years as they launch their businesses</span>. Business owners who locate in &ldquo;distressed communities&rdquo; or start a social enterprise also <span style="text-decoration: underline;">could ask the government to forgive as much as $17,500 in loans after five years in business</span>.</strong></p> <p>&nbsp;</p> <p><strong>The goal of this part of the plan is to encourage millennials to start businesses</strong>. Entrepreneurship among young Americans has fallen drastically, and student debt is often cited as one of the greatest obstacles to starting up.</p> <p>&nbsp;</p> <p>The tech agenda also affirms Clinton&rsquo;s commitment to net neutrality; her desire to make the United States Digital Service, a tech team that modernizes government processes, a permanent part of the executive branch; her plan to train 50,000 computer science teachers over the next decade; and her interest in ensuring tech companies can recruit top talent from anywhere in the world. According to the platform, Clinton &ldquo;would &lsquo;staple&rsquo; a green card to STEM masters and PhDs from accredited institutions.&rdquo;</p> <p>&nbsp;</p> <p>Silicon Valley will probably be most interested, however, in Clinton&rsquo;s policies regarding privacy and encryption, both topics that have intersected with the country&rsquo;s national security interests in the wake of the shooting in San Bernardino, California. But the newly released agenda may not satisfy. Though Clinton&rsquo;s plan notes the importance of tech companies and law enforcement working together to preserve &ldquo;individual privacy and security?,&rdquo; it offers little in the way of specifics or new information. Clinton has repeatedly called for collaboration between Silicon Valley and the government to win the war against terrorists both online and off, but it&rsquo;s never clear just how she&rsquo;d convince a reluctant tech community to cooperate.</p> </blockquote> <p>Here is the wording from the <a href="">Factsheet</a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span style="text-decoration: underline;">Defer Student Loans to Help Young Entrepreneurs:</span></p> <p>&nbsp;</p> <p><strong>A smaller proportion of millennials today are starting new ventures as compared to their predecessors</strong>. This is not for a lack of desire&mdash;<strong>more than half of America&rsquo;s millennials say they want to start a business&mdash;but barriers like student debt and a lack of access to credit are holding young people back</strong>. Hillary is committed to breaking down barriers and leveling the playing field for entrepreneurs and innovators who are launching their own start-ups. <strong>Hillary will allow entrepreneurs to put their federal student loans into a special status while they get their new ventures off the ground</strong>.&nbsp; For millions of young Americans, this would mean <span style="text-decoration: underline;"><strong>deferment from having to make any payments on their student loans for up to three years&mdash;zero interest and zero principal</strong></span>&mdash;as they work through the critical start-up phase of new enterprises. <strong>Hillary will explore a similar deferment incentive not just to founders of enterprises, but to early joiners &ndash; such as the first 10 or 20 employees</strong>.&nbsp;&nbsp; <strong>Additionally, for young innovators who decide to launch either new businesses that operate in distressed communities, or social enterprises that provide measurable social impact and benefit, she will offer forgiveness of up to $17,500 of their student loans after five years</strong>.</p> </blockquote> <p>* * *</p> <p>So there we have it, <strong>Hillary Clinton will pull millennials out of from <a href="">the basement of their parents house</a> and into the world of business simply by allowing loan deferments that don&#39;t accumulate interest.</strong> <em>For those that can somehow survive a new business in a stressed community for five years, the government will forgive those loans as well.</em></p> <p>Just <strong>as long as nobody ever addresses the core issues that are driving millennials into debt with no real opportunity to repay that debt to begin with, the status quo will continue to survive</strong>, and the politicians will all be left scratching their head as to why these programs just aren&#39;t working. Once again, the Federal Reserve and its monetary polices are left intact, and the politicians won&#39;t ever be forced to make any real fiscal reforms - that would just be too difficult.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="581" height="423" alt="" src="" /> </div> </div> </div> Bernie Sanders Federal Reserve national security Student Loans Tue, 28 Jun 2016 23:50:00 +0000 Tyler Durden 564737 at