http://www.zerohedge.com/fullrss2.xml/default en Consumer Confidence Soars To 11-Year Highs (As Inflation Expectations Near Record Lows) http://www.zerohedge.com/news/2016-12-09/consumer-confidence-soars-11-year-highs-inflation-expectations-near-record-lows <p>Americans' confidence in Current Conditions have not been <strong>higher than this since July 2005</strong> following Donald Trump's election. </p> <p>Hope also surged to 2 year highs...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_umich1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_umich1_0.jpg" width="600" height="314" /></a></p> <p>&nbsp;</p> <p>Despite a drop in both short- and long-term inflation expectations...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_umich2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_umich2_0.jpg" width="600" height="320" /></a></p> <p>&nbsp;</p> <p>It seems not everyone is buying th Trumpflation exuberance.</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="964" height="505" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_umich1.jpg?1481296704" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/consumer-confidence-soars-11-year-highs-inflation-expectations-near-record-lows#comments American people of German descent American television Business Climate change skepticism and denial Consumer Confidence Donald Trump Donald Trump presidential campaign Economy Inflation Politics Politics of the United States The Apprentice Fri, 09 Dec 2016 15:21:54 +0000 Tyler Durden 580167 at http://www.zerohedge.com Gold & Silver Paper Has Been Rigged for 20 years - Podcast http://www.zerohedge.com/news/2016-12-09/gold-silver-paper-has-been-rigged-20-years-podcast <h2>Rigged Markets are the Norm</h2> <p><em>by <a href="https://www.marketslant.com/articles/gold-silver-paper-has-been-rigged-20-years-podcast">Soren K </a>of <a href="https://www.marketslant.com/articles/gold-silver-paper-has-been-rigged-20-years-podcast">MarketSlant</a>-The only reason we are even starting to get to the bottom of the LME Silver and Gold scandals is because the game in those markets is over. The carpet baggers have moved on to more fertile fields like China and India. Listen as a 25 year professional with experience on both sides of the fence gives a 1000 foot overview how investors are squeezed from above, via government policies, and from below through trading execution.</em><br />Vince Lanci reacts to LME Silver and Gold Fix scandals. He describes how<br /> all markets are rigged both top-down and bottom-up against the public.<br /> Vince is a 25 year Energy and Metals trader. He is expert in Trade<br /> Forensics and Market Structure analysis, and has contributed to <a href="http://www.zerohedge.com/article/exclusive-second-whistleblower-emerges-deep-insiders-walkthru-silver-market-manipulation"><br /> Zerohedge</a> and <a href="https://www.marketslant.com/articles/exclusive-judge-rules-london-gold-fix-manipulation-case">MarketSlant</a> several times on metals manipulation mechanics. </p> <p><em><br /></em></p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/297020992&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;visual=true" width="100%" height="450" frameborder="no" scrolling="no"></iframe></p> <div class="field field-type-filefield field-field-image-blog"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_blog" width="500" height="303" alt="" src="http://www.zerohedge.com/sites/default/files/images/user238352/imageroot/rigging%202_0.jpg?1481296583" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/gold-silver-paper-has-been-rigged-20-years-podcast#comments Business China Gold fixing India LME Fri, 09 Dec 2016 15:16:26 +0000 Vince Lanci 580165 at http://www.zerohedge.com GDP Hope Fades As Wholesale Inventories Tumble Most In 8 Months http://www.zerohedge.com/news/2016-12-09/gdp-hope-fades-wholesale-inventories-tumble-most-8-months <p><strong>For the 3rd month in a row , wholesale inventories dropped year-over-year</strong> (tumbling 0.4% MoM in October, the most since February) casting modest shadows on the Q4 GDP hope. Sales surged however, jumping 1.4% in October (double the 0.7% increase expected). Overall this reduced the critical<strong> inventories-to-sales ratio but it remains at notable cyclical highs.</strong></p> <p>The 3rd monthly decline in inventories YoY will not help GDP but <strong>wholesale sales surged most since Oct 2014...<br /></strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_invb1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_invb1_0.jpg" width="600" height="314" /></a></p> <p>&nbsp;</p> <p>Pushing inventories to sales lower - but still in notably recessionary territory...</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_invb_0.jpg" width="600" height="314" /></p> <p>&nbsp;</p> <p>The big question remains, what happens when the China credit impulse/US Govt spending flourish fades.</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="963" height="504" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_invb.jpg?1481296002" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/gdp-hope-fades-wholesale-inventories-tumble-most-8-months#comments Business China Gross domestic product National accounts Wholesale Inventories Fri, 09 Dec 2016 15:10:02 +0000 Tyler Durden 580164 at http://www.zerohedge.com Monte Paschi Stock, Bonds Collapse After ECB Rejection http://www.zerohedge.com/news/2016-12-09/monte-paschi-stock-bonds-collapse-after-ecb-rejection <p>Having soared ridiculously (25% off Tuesday lows) following its dip after the Italy referendum 'no' vote, <span class="teaser-text">ailing Italian lender Monte dei Paschi di Siena has seen its<strong> stocks and bonds eviscerated</strong> in today's trading as reality dawns that the fecal matter in Italy is about to strike the rotating object. <a href="http://www.zerohedge.com/news/2016-12-09/ecb-calls-italys-bluff-rejects-monte-paschi-request-more-time-raise-capital">ECB's rejection of Paschi's request for more time </a>has sparked wholesale selling across the Italian banking system.<br /></span></p> <p>BMPS shares are now down for the week -after being up over 15% following the Italy vote...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_BMPS1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_BMPS1_0.jpg" width="600" height="313" /></a></p> <p>&nbsp;</p> <p>And BMPS sub bonds have collapsed, proving once again that this market is clueless... after bouncing on Draghi's dovishly hawkish taper/extension. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_BMPS.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_BMPS_0.jpg" width="600" height="311" /></a></p> <p>The sub bonds involved in the debt-for-equity swap have colapsed 1000-1500bps on local platforms.</p> <p>Perhaps Draghi's omniptence is questionable after all?</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="969" height="502" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_BMPS.jpg?1481294339" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/monte-paschi-stock-bonds-collapse-after-ecb-rejection#comments Banca Monte dei Paschi di Siena Bond Economy Economy of Italy European Central Bank Financial services Italy Monte Paschi Reality Siena Fri, 09 Dec 2016 14:46:30 +0000 Tyler Durden 580163 at http://www.zerohedge.com Top Hedge Funds Predict How It All Will End http://www.zerohedge.com/news/2016-12-09/top-hedge-funds-predict-how-it-all-will-end <p>In early 2009, roughly at the time when this blog was launched which coincided with the start of the greatest monetary experiment of all time, we warned that there are two ways it will end: either in hyperinflation, or a deflationary supernova, the failure of currency and, eventually, barter. Now, almost 8 years later, some of the world's top hedge funds are in agreement, and they are worried. </p> <p>As the <a href="http://www.wsj.com/articles/hooked-on-qe-hedge-funds-see-dangerous-addiction-1481282839">WSJ reports</a>, these prominent hedge fund managers join an increasingly bigger and louder chorus which says central bank bond buying programs that are pumping trillions of dollars into global markets will end badly. </p> <p>In yesterday's main event, the ECB said it would extend its asset purchase program to the end of next year, buying bonds at a reduced rate. As the following chart from <a href="https://twitter.com/lisaabramowicz1/status/807211104397094912/photo/1">BBG projects</a>, at the ECB's revised rate of bond purchases, its balance sheet will soon surpass that of the Fed.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/12/07/HF%20comp.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/12/07/HF%20comp_0.jpg" width="500" height="238" /></a></p> <p>&nbsp;</p> <p>So what happens next? Prominent managers have told The Wall Street Journal in recent interviews of their doubts about the endgame for quantitative easing around the world.&nbsp; </p> <p><strong>“There’s no non-messy way out of this,” </strong>said Luke Ellis, chief executive of Man Group, one of the world’s biggest hedge-fund firms with $80.7 billion in assets. “There’s two versions” of how this ends, he added. Either central banks could move to so-called ‘helicopter money,’ where they buy debt from the government, which then spends the proceeds or gives it to the population to spend. This “<strong>for a few years looks golden then leads to hyperinflation,” </strong>he said. Or the speed at which money circulates within the economy could grind to a halt. <strong>“Then you effectively have a barter economy,” </strong>he said. </p> <p>In a series of exclusive <a href="http://www.wsj.com/articles/hooked-on-qe-hedge-funds-see-dangerous-addiction-1481282839">interviews with the Journal</a>, hedge-fund executives overseeing around $280 billion in total highlighted a range of problems created by quantitative easing. The problems they highlight are precisely those that QE was designed to solve, and are exactly the same problems we warned about since the 2009, for which we have been repeatedly branded some variation of "fake news." Now the skepticism has become mainstream.</p> <p>This is what, according to the hedge fund managers interviewed by the WSJ, will happen:</p> <p><strong>Damage to economic growth</strong></p> <p>Rather than kick-starting growth, quantitative easing may do the reverse. Some managers fear it distorts financial markets and undermines capitalism. That system relies on profit-hungry investors to differentiate between strong and weak companies—funding the strong while letting the weak die. QE, say some managers, doesn’t differentiate. </p> <p>For instance, the Bank of England is buying the debt of firms it deems make “a material contribution” to the U.K. economy. That has led some investment banks and companies to create new debt especially for it to buy. The ECB has bought €48.2 billion ($51.2 billion) of corporate debt since June, but the hoped-for private-sector investment hasn’t materialized. </p> <p>“What does a market do? It’s a voting mechanism,” said Michael Hintze, billionaire founder of hedge fund CQS, which runs around $12 billion in assets. “Instead you’ve got this 800-pound gorilla out there who’s hoovering up assets. <strong>“There’s a misallocation of capital and an opportunity cost to the real economy,” </strong>added Mr. Hintze, whose portfolio is up 30% this year, ranking it one of the world’s top-performing hedge funds. “It means GDP is not growing as much as it might.” </p> <p>Some put it even more strongly. <strong>“It’s definitely destructive of economic growth,” </strong>said Crispin Odey, founder of Odey Asset Management, which runs $8.2 billion in assets. </p> <p><strong>“Capitalism dies a death,” </strong>said Mr. Odey, who sees government policy as the main factor influencing markets. His fund, a top performer after the credit crisis, is down sharply this year because of being too bearish. “<strong>It’s all policy. It’s the Kremlin. And I’m in the gulags.”</strong></p> <p>* * * </p> <p><strong>Damage to society</strong> </p> <p>In her speech to the governing Conservative Party conference in October, U.K. Prime Minister Theresa May spoke of “some bad side effects” from quantitative easing as people with assets got richer while those without them suffered. U.S. President-elect Donald Trump has said low rates have robbed savers. Those side effects include “envy and distress” within society, <strong>“as people think ‘I can’t get out of where I am,’” </strong>said Andrew McCaffery, group head of solutions at Aberdeen Asset Management, who looks after $170 billion in assets. </p> <p>Ultralow interest rates mean the large part of the population with few financial assets begins to despair of how to generate income to fund retirement, he said. </p> <p>“People see a developing black hole,” he said. This “increases the sense of there being little to lose for many” people.</p> <p>Andrew Law, chief executive of New York-based Caxton Associates LP, which runs around $7.8 billion, said quantitative easing averted economic depression after the financial crisis.</p> <p>But he added: “The losers of QE are society, and democracy is also a loser, because central banks are not publicly elected officials.”</p> <p>* * * </p> <p><strong>Deflation</strong></p> <p>Quantitative easing was also introduced as a way of increasing private-sector spending and raising inflation. Some investors even worried it would spark hyperinflation and rushed to buy gold. Instead, say some managers, it has led to deflation. </p> <p><strong>“It took me a long time to work it out,” said CQS’s Mr. Hintze. “It’s a very complex issue.” He said that massive amounts of liquidity mean that “liquidity’s not worth much anymore,” </strong>which leads to negative interest rates. “I do think it [QE] is a massive deflationary force. The reason is because money is worth less but the price of real assets goes up.”&nbsp; &nbsp;</p> <p>Mr. Odey said quantitative easing leads to deflation because weaker competitors are kept alive by cheap debt as “zombie” companies.</p> <p>* * * </p> <p><strong>Hard stop</strong></p> <p>Finally, hedge-fund managers see difficulty in ending quantitative easing. </p> <p><strong>“Central banks are sadly helping to create the ‘black hole,’ and the sucking noise and pull is getting bigger,” </strong>said Aberdeen’s Mr. McCaffery, “but you just have to keep going as your alternative options as a central banker are just too unpalatable to consider. </p> <p>Using an analogy we first came up with in 2009, McCaffrey slammed the use of a drug placebo to keep the system intact: “More methadone is not going to help, a form of cold turkey [is] needed, but no central bank is going to do that,” he added. He warns governments’ debt-to-GDP levels have risen. </p> <p>The punchline: </p> <p><strong>“In the long term, it implies rates can never go up, as the damage will be extraordinary in nature,” </strong>he said, as they struggle with their debt loads. For now, however, the market which moments ago hit new all time highs, is blissfully ignoring all of the above.</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="3933" height="404" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/top%20HF%20teaser.jpg?1481293810" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/top-hedge-funds-predict-how-it-all-will-end#comments Bank of England Bank of England Bond Business Central Banks Central banks conservative party Credit Crisis Crispin Odey Deflation Donald Trump Economic bubbles Economy Hedge fund Helicopter money Hyperinflation Inflation Michael Hintze Monetary policy Quantitative Easing Quantitative easing Systemic risk Turkey US Federal Reserve Wall Street Journal Fri, 09 Dec 2016 14:32:38 +0000 Tyler Durden 580160 at http://www.zerohedge.com Congress Set to Fund ‘McCarthyesque’ Investigation of Alternative Media? http://www.zerohedge.com/news/2016-12-09/congress-set-fund-%E2%80%98mccarthyesque%E2%80%99-investigation-alternative-media <div id="article-tools" style="box-sizing: border-box; padding-top: 15px;"> <ul class="tools-list" style="box-sizing: border-box; margin-top: 0px; margin-bottom: 20px; list-style-type: none; list-style-image: initial; height: 30px;"> <li style="box-sizing: border-box; float: left;"><span><br /> <div class="top-article-title" style="box-sizing: border-box; text-shadow: rgba(255, 255, 255, 0.247059) 0px 1px 0px; line-height: 26px;"><span style="color: #303030; font-family: Roboto, sans-serif;"><span style="font-size: 24px;"><em style="font-variant: inherit; font-weight: inherit; box-sizing: border-box; font-stretch: inherit; font-size: 18px; line-height: inherit; color: #818181;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: 24px; line-height: inherit; font-family: inherit; color: #303030;">Via&nbsp;<a href="http://www.thedailybell.com/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #222222; outline-style: none; outline-width: 0px;">The Daily Bell</a><a href="http://www.thedailybell.com/news-analysis/us-domestic-tumult-orchestrated-or-not/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #1e439a;">&nbsp;</a></span></strong></em>&nbsp;</span></span><span style="color: #0c5b3c; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif; font-size: 14px;">&nbsp;</span></div> <p></p></span></li> </ul> </div> <div id="article_main" class="article_text" style="box-sizing: border-box; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;"> <blockquote style="box-sizing: border-box; padding: 10px 20px; margin: 0px 0px 20px; font-size: 17.5px; border-left: 5px solid #eeeeee;"> <p style="box-sizing: border-box; font-size: 16px; line-height: 24px; padding-bottom: 8px;">Republicans ready to launch wide-ranging probe of Russia, despite Trump’s stance … &nbsp;Congress is doubling down on promises to investigate Russia, after President-elect Donald Trump dismisses evidence that Russia was involved. –&nbsp;<span style="box-sizing: border-box; font-weight: bold;"><a href="https://www.washingtonpost.com/news/powerpost/wp/2016/12/08/republicans-ready-to-launch-wide-ranging-probe-of-russia-despite-trumps-stance/?utm_term=.cbc49172c20e" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">Washington Post</a></span></p> </blockquote> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">In the new year, Congress may&nbsp;authorize and urge wide-ranging investigations into the alternative media under the guise of claiming that non-mainstream reporting cooperated with Russia in generating “fake news” that undermined&nbsp;US elections.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Within the context of legislative accusations, “fake news” is apparently not generated by the mainstream and can only be found in non-mainstream news and information. The result could be the hounding of the alternative media at the expense of the mainstream media.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">More:</p> <blockquote style="box-sizing: border-box; padding: 10px 20px; margin: 0px 0px 20px; font-size: 17.5px; border-left: 5px solid #eeeeee;"><p style="box-sizing: border-box; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px;">Leading Senate Republicans are preparing to launch a coordinated and wide-ranging probe into Russia’s alleged meddling in the U.S. elections and its potential cyberthreats to the military, digging deep into what they view as corrosive interference in the nation’s institutions.</p> <p style="box-sizing: border-box; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px;">Such an aggressive approach puts them on a direct collision course with President-elect Donald Trump, who downplays the possibility Russia had any role in the November elections — arguing that a hack of the Democratic National Committee emails may have been perpetrated by “some guy in his home in New Jersey.”</p> <p style="box-sizing: border-box; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px;">The fracture could become more prominent after Trump is inaugurated and begins setting foreign policy. He has already indicated the country should “get along” with Russia since the two nations have many common strategic goals.</p> <p style="box-sizing: border-box; font-size: 16px; line-height: 24px; padding-bottom: 8px;">… The loudest GOP calls for a Russia probe are coming from McCain and Sen. Lindsey Graham (S.C.). Both have taken a hard line on Russia and have been highly critical of Trump, particularly his praise of President Vladimir Putin.</p> </blockquote> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">In a previous article&nbsp;<a href="http://www.thedailybell.com/news-analysis/fake-news-criminalized-2/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">HERE</a>&nbsp;we reported on statements from the head of Britain’s international military intelligence (MI6) who said he was “deeply concerned about the risks posed by hybrid warfare, where countries take advantage of the internet.”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Alex Younger, aka “C,” said he was worried about countries that<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">“</em>further their aims deniably through means as varied as cyberattacks, propaganda, or subversion of democratic process.”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Even Pope Francis recently added his voice to “fake news” denunciations, reportedly making the point that politicians in particular ought not to be criticized.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">The statements from British law enforcement are laying the groundwork for action&nbsp;aganst&nbsp;fake news. This could be&nbsp;where the US is headed as well. (Certainly, a false flag might help …)</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">A step in this direction can be seen in a recent interview between TV host Tucker Carlson and Democratic Rep. Adam Schiff on Tucker’s FOX News program.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;"><a href="http://www.powerlineblog.com/archives/2016/12/full-of-schiff-3.php" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">HERE,</a>&nbsp;from PowerlineBlog.com:</p> <blockquote style="box-sizing: border-box; padding: 10px 20px; margin: 0px 0px 20px; font-size: 17.5px; border-left: 5px solid #eeeeee;"><p style="box-sizing: border-box; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px;">The subject under discussion was Russian cyber hacking in connection with our just concluded election …&nbsp;Among other highlights, Schiff accused Carlson of “carrying water” for Vladimir Putin and the Kremlin before counseling him not to resort to “personal insults.”</p> <p style="box-sizing: border-box; font-size: 16px; line-height: 24px; padding-bottom: 8px;">… Schiff took it a step further, saying that Carlson’s show should be moved to RT, the news network funded by the Russian government. Schiff repeatedly dodged Carlson’s demand that Schiff attribute the hacking of John Podesta’s email account to the Russian government. In its own way this makes for compelling viewing.</p> </blockquote> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Does this seem like a kind of McCarthyism?&nbsp;…&nbsp;Accusing a reputable journalist of working on behalf of an “enemy” of the United States because that reporter is posing unwelcome questions. You can see the video&nbsp;<a href="https://www.youtube.com/watch?v=bvMeGugrt1g" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">HERE.</a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Carlson seemed a bit taken aback by Schiff’s accusations. This may be because Carlson – as politely confrontational as he is – didn’t fully understand the program that certain elements of Congress have apparently embarked upon.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">The funding for this program is already being put in place. The House has passed a bill, “H.R. 6393, Intelligence Authorization Act for Fiscal Year 2017” that will ultimately provide resources to establish that&nbsp;the alternative media is disseminating Russian propaganda and thus aiding and abetting the “enemy.”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Almost the entire House voted for the bill which is now with the Senate. One might think that the Senate will not pass this bill in advance of Donald Trump’s presidency. In fact, there is only about a 30 percent that the bill will be passed, according to some estimates.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">But it is surely feasible that the bill will pass because there is a sizable anti-Trump rump of Senate Republicans that would be as pleased to fund attacks on the alternative media as their Democratic colleagues. Support is probably being lined up very quietly even now.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">Trump himself has not spoken out on the bill, nor has he said much about hearings that will establish the basis for upcoming attacks that may be aimed at&nbsp;him as well. The alternative media provided Trump with a good deal of support during his campaign.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">We have suggested that&nbsp;Rand Paul might&nbsp;speak out on behalf of his father who has already been labeled as a Russian propagandist despite his near successful GOP presidential candidacy. You can see that article&nbsp;<a href="http://www.thedailybell.com/news-analysis/will-rand-paul-fight-fake-news-with-a-filibuster/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">HERE:</a>&nbsp;“Will Rand Paul Fight Fake News With a Filibuster?”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;">It is possible that anti-media campaign is being pushed forward mostly by the Clintons and their allies. Hillary Clinton had suggested she would&nbsp;attack the alternative media once she won the race but even though she lost perhaps her plan was initiated anyway. There are certain “hurried” elements about it.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; line-height: 24px; padding-bottom: 8px;"><span style="box-sizing: border-box; font-weight: bold;">Conclusion:&nbsp;</span>It is hard to tell at the moment whether this is perhaps&nbsp;a Clinton/CIA gambit or whether it has the full backing and support of the London’s City financial establishment. If it is the former, it may not succeed. The latter group, on the other hand, is not always&nbsp;efficient but far more powerful.</p> <div id="article_main" style="box-sizing: border-box; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: inherit; font-family: lucida_granderegular, Verdana, sans-serif; color: #000000;"> <p style="box-sizing: border-box; margin-top: 0.25em; margin-bottom: 0.75em; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.3; font-family: inherit;"><em style="box-sizing: border-box; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">Edit</strong><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">or's Note:&nbsp;</strong><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">The Daily Bell is giving away a silver coin and a silver "white paper" to subscribers. If you enjoy DB's articles and want to stay up-to-date for free, please subscribe&nbsp;<strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><a href="http://www.thedailybell.com/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #1e439a;">here</a>.&nbsp;</strong></strong></em></p> </div> <p style="box-sizing: border-box; margin-top: 0.25em; margin-bottom: 0.75em; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.3; font-family: lucida_granderegular, Verdana, sans-serif; color: #000000;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">More from</span><a href="http://www.thedailybell.com/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #1e439a;">&nbsp;The Daily Bell:</a><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">&nbsp;</span></p> <p style="box-sizing: border-box; margin-top: 0.25em; margin-bottom: 0.75em; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.3; font-family: lucida_granderegular, Verdana, sans-serif; color: #000000;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; color: #1e439a;"><em style="box-sizing: border-box; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; text-decoration: underline;"><a href="http://www.thedailybell.com/news-analysis/will-rand-paul-fight-fake-news-with-a-filibuster/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #1e439a;">Will Rand Paul Fight Fake News With a Filibuster?<br style="box-sizing: border-box;" /></a></span></em></strong></p> <p style="box-sizing: border-box; margin-top: 0.25em; margin-bottom: 0.75em; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.3; font-family: lucida_granderegular, Verdana, sans-serif; color: #000000;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><em style="box-sizing: border-box; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; color: #1e439a;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; text-decoration: underline;"><a href="http://www.thedailybell.com/news-analysis/populism-vs-globalism-a-meme-that-doesnt-exist/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; color: #1e439a;">‘Populism Vs. Globalism’ – a Meme That Doesn’t Exist in Reality</a></span></span></span></em></strong></p> <p style="box-sizing: border-box; margin-top: 0.25em; margin-bottom: 0.75em; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.3; font-family: lucida_granderegular, Verdana, sans-serif; color: #000000;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><em style="box-sizing: border-box; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><a href="http://www.thedailybell.com/news-analysis/elites-plot-to-replace-austrian-free-market-economics/" style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: 1.2; font-family: inherit; word-wrap: break-word; text-decoration: underline; color: #1e439a;">Elites Plot to Replace Austrian Free-Market Economics?</a></span></em></strong></p> </div> http://www.zerohedge.com/news/2016-12-09/congress-set-fund-%E2%80%98mccarthyesque%E2%80%99-investigation-alternative-media#comments American people of German descent Business Central Intelligence Agency Climate change skepticism and denial Congress Conservatism in the United States Democratic National Committee Donald Trump Donald Trump Donald Trump presidential campaign Fox News Politics Politics Politics of the United States Rand Paul Reality Republican Party Russian government Senate Stop Trump movement The Apprentice Vladimir Putin Vladimir Putin Fri, 09 Dec 2016 14:24:00 +0000 TDB 580159 at http://www.zerohedge.com Breaking The Correlation Curse http://www.zerohedge.com/news/2016-12-09/breaking-correlation-curse <p><em>Via ConvergEx&#39;s Nick Colas,</em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>The &ldquo;Curse of Correlation&rdquo; may have finally met its match.&nbsp;</strong> Ever since the Financial Crisis, most U.S. equity sector groups have traded with very tight correlations to the market as a whole.&nbsp; We&rsquo;ve tracked this phenomenon since 2009, and average sector correlations have been +80% over that time rather than the 50% considered &ldquo;Normal&rdquo;.&nbsp; <strong>Over the past month, however, sector correlations averaged just 57%. </strong>That&rsquo;s the lowest observation since we started keeping track of this indicator in October 2009.&nbsp; <strong>So what gives, and how long will it last?&nbsp; The one word explanation is &ldquo;Trump&rdquo;.&nbsp;</strong></p> <p>&nbsp;</p> <p>The President-Elect&rsquo;s proposed policies <strong>break so completely with the last 8 post-Crisis years that investors are re-evaluating everything </strong>from the trajectory of long term interest rates to which sectors stand to benefit the most under a Trump presidency.&nbsp; As for how long this new/old &ldquo;Normal&rdquo; will last, just ask yourself <strong><em>&ldquo;How predictable do I think new administration will be, especially in its first year?&rdquo;&nbsp;</em></strong></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_corr1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_corr1_0.jpg" style="width: 600px; height: 308px;" /></a></p> <p>&nbsp;</p> <p>Our assumption: not very, which means correlations will remain low.</p> </blockquote> <p><strong>Search for &ldquo;Famous curses&rdquo; on Google, </strong>and you&rsquo;ll find the Internet has a minor fascination with systematic and seemingly unexplained misfortune.&nbsp; A few examples:</p> <ul> <li><strong>The Hope Diamond.</strong>&nbsp;Forty-five carats of death and destruction, including a stint as the prized jewel of Louis XVI of France until the unpleasantness known as the French Revolution came along. Other owners have reputedly been torn to pieces by mobs (France) or dogs (Constantinople).&nbsp; And they were the lucky ones&hellip;</li> <li><strong>King Tut.&nbsp;</strong>The money man behind the 1922 unearthing of this 18th&nbsp;Dynasty pharaoh, Lord Carnarvon, died shortly after the discovery.&nbsp; As did 20 other people associated with the excavation.&nbsp; Lead archaeologist on the dig Howard Carter did manage to live 17 years after breaking the tomb&rsquo;s seals, however.</li> <li><strong>James Dean&rsquo;s Porsche 550 Spyder.&nbsp;</strong>Dean died in a crash while driving it, and as it was parceled out for parts, some awful things happened to the people who took the pieces.&nbsp; The outer shell of the car disappeared outright and has never been found.</li> <li><strong>Otzi the Iceman.&nbsp;</strong>Remember the frozen Bronze Age corpse found in the Alps back in 1991?&nbsp; Like King Tut, several of the teams that excavated him or did the follow up research on the body have met with untimely deaths.</li> </ul> <p><strong>Capital markets have had their own curse since the 2008 Financial Crisis: correlations between disparate asset classes and sectors have remained remarkably high.&nbsp;</strong> Some groups might under/overperform (tech up, financials down), but on any given day/week/month they tended to move in the same direction as the S&amp;P 500. The &ldquo;Curse of Correlation&rdquo; had notched its own victims, chiefly active money managers who tried to outperform the passive indices with modest sector over/under weights.&nbsp; That playbook worked fine in the 1980s and 1990s, but not lately.&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_corr.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/12/02/20161209_corr.jpg" style="width: 549px; height: 348px;" /></a></p> <p><strong>We have tracked the &ldquo;Curse of Correlation&rdquo; on a monthly basis since October 2009.&nbsp;</strong>The basics are simple: the average sector (tech, financials, utilities, etc) correlation to the S&amp;P 500 has been 82.3% since we started looking at the data.&nbsp; Other asset classes, such as Emerging Market and EAFE (Europe, Asia, Far East) developed economy equities have been in that same low-80% range.&nbsp; High yield corporate bonds have shown a 70% average correlation to equities. History, experience, and common sense tell us that all these correlations to U.S. stocks should be closer to 50%.&nbsp; Yes, they are all financial assets, but how much should tech stocks trade like junk debt or utilities?&nbsp; Not as much as they have.</p> <p><strong>Now, correlations have declined dramatically</strong>:</p> <ul> <li><strong>Average sector correlations to the S&amp;P 500 were 56.8% over the last month, the lowest reading since we started looking at the data in 2009.</strong>&nbsp;The prior low of 58.4% was in December 2014. Just 2 months ago, average correlations were 79% and last month they came in at 66%. The trend is clearly our friend here.</li> <li><strong>Correlations between non-US equities and the S&amp;P 500 were 77.5% for the developed economies of the EAFE countries and 51.6% for the Emerging Markets.&nbsp;</strong>Two months ago those readings were 88.4% and 87.8%, respectively.</li> <li>Domestic high yield corporate bonds showed a 54.75% correlation to the S&amp;P 500 over the last month.&nbsp;That&rsquo;s well below the long run average of 70% and the 87.8% of two months ago.</li> <li><strong>Looking at the individual sectors, all show materially lower correlations to the market as a whole over the past month.</strong> Technology is down to a 70% correlation from 92.9% two months ago.&nbsp; Energy stocks are less than 50% (41.4%, to be exact) correlated to the S&amp;P 500, versus 72.4% two months ago.&nbsp; Even the big winner of the last month &ndash; Financials &ndash; are now just 53.2% correlated to the U.S. equity market as a whole.</li> </ul> <p><strong>It is hard to overstate how important a development this is.&nbsp;</strong> Lower correlations signal that investors are actively choosing winners and losers more aggressively than at any point since the Financial Crisis.&nbsp; If you think back a few years to the &ldquo;Risk On, Risk Off&rdquo; markets of 2010 &ndash; 2015, you will recall how monotonically stocks responded to macro news.&nbsp; Good, or bad, everything pretty much worked (or not) depending on the market&rsquo;s perception of central bank interest rate policy.&nbsp;&nbsp;</p> <p><strong>Now, we have a brand new paradigm that is actually the same as the old (pre-Crisis) paradigm.&nbsp;</strong> Since President-Elect Donald Trump&rsquo;s surprise win, investors have been hustling to identify new macro trends (higher interest rates, primarily) and unlock potential winners (financials, industrials, materials, and health care, for the most part).&nbsp; And since most investors don&rsquo;t have a lot of money on the sidelines, they are expressing these views by selling losers (tech and utilities) to buy the new market leadership.&nbsp;</p> <p><strong>For those with a nostalgic bent and/or a lot of miles on the clock, this will all look pretty familiar.&nbsp;</strong> It is 1991 &ndash; 1996 all over again &ndash; a typical cyclical rally, but now caused by anticipated fiscal policy rather than a Fed rate cycle.&nbsp; And for those without that historical perspective, it just looks like a lot of performance chasing into the end of the year.&nbsp;</p> <p><strong>As for whether the old dogs or the young pups will end up right is up for grabs at the moment.&nbsp; </strong>All the correlation data simply tells us is that this time (post-election) is actually different from any point since the Financial Crisis.&nbsp; <strong>The &ldquo;Curse of Correlation&rdquo; has lifted, for now.</strong>&nbsp; If it really is a new day, we shouldn&rsquo;t see correlations return to their post-Crisis highs for many years.&nbsp; One month, however good, is not enough time to know for sure.&nbsp; But you have to start somewhere, even in the curse-breaking business.</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="549" height="348" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_corr.jpg?1481290599" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/breaking-correlation-curse#comments Asset allocation Business Capital Markets Donald Trump Economy ETC Far East Finance Financial crisis of 2007–2008 Financial risk France G factor Google High Yield Investment Money Money On The Sidelines Porsche S&P 500 US Federal Reserve Fri, 09 Dec 2016 14:20:47 +0000 Tyler Durden 580158 at http://www.zerohedge.com Following Twitter Spat, Boeing Gives $1 Million To Trump Inauguration http://www.zerohedge.com/news/2016-12-09/following-twitter-spat-boeing-gives-1-million-trump-inauguration <p>Just days after president-elect Donald Trump called out Boeing for <a href="http://www.zerohedge.com/news/2016-12-06/boeing-slides-after-trump-tweets-airplane-costs-are-out-control">"out of control"</a> costs on its Air Force One bid, the aircraft manufacturer has decided to match its donation to President Obama, <strong>giving $1 million to the president-elect’s inauguration</strong>,&nbsp;<a href="http://www.usatoday.com/story/news/politics/onpolitics/2016/12/08/boeing-pledges-1-million-donald-trumps-inaugural-events/95164604/">USA Today reports.</a></p> <p>We are sure it's nothing but a coincidence, but just a few short days after president-elect Trump's tweet-storm over the outrageous bid for replacement Air Force Ones...</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/806134244384899072">December 6, 2016</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>Boeing has decided, as <a href="http://nypost.com/2016/12/09/boeing-is-giving-1m-to-trumps-inauguration/">NY Post reports</a>, <strong>to donate $1 million to Trump's inauguration...</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>"The donation is the exact same amount given by Boeing to the last inauguration, President Obama’s second in 2013.</strong></p> <p>&nbsp;</p> <p>The Trump team plans to raise $75 million for the inaugural, which will be held Jan. 20 in Washington, DC.</p> </blockquote> <p>The timing is anything but coincidental...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>Seemingly unprompted, Trump suggested Tuesday that the company is taking American taxpayers for a ride.</strong></p> <p>&nbsp;</p> <p>“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” Trump said on Twitter.</p> <p>&nbsp;</p> <p>Trump also told reporters gathered Tuesday at Trump Tower, “The plane is totally out of control. It’s going to be over $4 billion for Air Force One program and I think it’s ridiculous. I think Boeing is doing a little bit of a number. We want Boeing to make a lot of money, but not that much money.”</p> <p>&nbsp;</p> <p>But later that day the president-elect spoke with the head of Boeing — and sounded optimistic.</p> <p>&nbsp;</p> <p><strong>“I spoke to a head of Boeing,” Trump told NBC’s “Today” on Wednesday, “and I think we’re going to work it out. That’s what we’re here for. I will negotiate prices.”</strong></p> </blockquote> <p>Of course, none of this should come as a surprise, as Boeing (as recently as 2014) was <a href="https://www.washingtonpost.com/politics/for-hillary-clinton-and-boeing-a-beneficial-relationship/2014/04/13/21fe84ec-bc09-11e3-96ae-f2c36d2b1245_story.html?utm_term=.8c550691a9c5">exposed for the mutually beneficial relationship </a>between one of the world’s major corporations and a potential future president. <strong>Hillary Clinton functioned as a powerful ally for Boeing’s business interests at home and abroad, while Boeing has invested resources in causes beneficial to Clinton’s public and political image.</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>In 2010, two months after Boeing won its $3.7 billion Russia deal<strong>, the company announced a $900,000 contribution to the William J. Clinton Foundation</strong> intended to rebuild schools in earthquake-ravaged Haiti. The foundation, which Hillary Clinton now helps lead with her husband and daughter, has become a popular charity for major corporations.</p> <p>&nbsp;</p> <p>The Boeing relationship meshed well with efforts by Clinton to expand the State Department’s advocacy of U.S. economic interests abroad, part of a broader philosophy that has emphasized partnering government with businesses to solve problems. A potential side benefit for Clinton has been the chance to strengthen ties to the kind of powerful allies in the business community who could assist a possible presidential bid.</p> <p>&nbsp;</p> <p>Clinton spokesman Nick Merrill said that her advocacy for Boeing’s jet deal was “the job that every Secretary of State is supposed to do and what the American people expect of them — especially during difficult economic times. She proudly and loudly advocated on behalf of American business and took every opportunity to promote U.S. commercial interests abroad.”</p> <p>&nbsp;</p> <p><strong>Boeing spokesman Sean McCormack said that the company sees its cooperation with the government to encourage exports and create jobs as a “mutual institutional interest, versus a personal one.”</strong></p> </blockquote> <p>It appears Boeing has found a new "mutual institutional interest..."</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="291" height="135" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_boeing.jpg?1481292068" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/following-twitter-spat-boeing-gives-1-million-trump-inauguration#comments American people of German descent Boeing Boeing Business Climate change skepticism and denial Department of State Donald Trump Donald Trump Donald Trump presidential campaign Economy Hillary Clinton Legal affairs of Donald Trump Merrill Mike Pence None Political positions of Donald Trump Politics President Obama The Apprentice Trump International Hotel and Tower Trump: The Art of the Deal Twitter Twitter William J. Clinton Foundation WWE Hall of Fame Fri, 09 Dec 2016 14:02:58 +0000 Tyler Durden 580157 at http://www.zerohedge.com Census Bureau, IRS, And St. Louis Fed Added To Washington Post's List Of "Russian Propaganda" Websites http://www.zerohedge.com/news/2016-12-09/census-bureau-irs-and-st-louis-fed-added-washington-posts-list-russian-propaganda-we <p><a href="http://charleshughsmith.blogspot.com/2016/12/us-census-bureau-irs-and-st-louis.html"><em>Submitted by Charles Hugh-Smith via OfTwoMinds blog,</em></a></p> <p><i>Sorry, U.S. Census Bureau, I.R.S. and St. Louis Federal Reserve - <strong>you&#39;re issuing &quot;Russian propaganda&quot; according to <i>The Washington Post&#39;s</i> shoddy &quot;fake news&quot; methodology.</strong></i></p> <p><b>In case you missed it, <i>The Washington Post&#39;s</i> criminally careless publishing of &quot;fake news&quot; about purported &quot;Russian propaganda&quot; created a backlash</b>--and the Post&#39;s attorney-approved bleating to sidestep responsibility for publishing &quot;fake news&quot; failed to calm the waters.</p> <p>Here&#39;s <i>The Washington Post&#39;s</i> &quot;fake news&quot; article in case you missed it: <a href="https://www.washingtonpost.com/business/economy/russian-propaganda-effort-helped-spread-fake-news-during-election-experts-say/2016/11/24/793903b6-8a40-4ca9-b712-716af66098fe_story.html" target="resource">Russian propaganda effort helped spread &lsquo;fake news&rsquo; during election, experts say</a>.</p> <p>The &quot;experts&quot; claims of expertise were not validated or investigated by the Post, and the Post prominently linked to a list of 200 websites (oftwominds.com among them) that purportedly &quot;wittingly or unwittingly&quot; promoted &quot;Russian propaganda&quot;--but <i>The Washington Post</i> did zero journalistic work to investigate the list or the anonymous &quot;experts&quot; that published it.</p> <p><b>Since the list is bogus, the entire story qualifies as &quot;fake news&quot;</b>--exactly what the Post claims to be investigating. Talk about irony....</p> <p><b>This criminally sloppy publishing of &quot;fake news&quot; isn&#39;t journalism--it&#39;s propaganda.</b> No amount of slippery legalese can erase <b>the fact that <i>The Washington Post</i> published a &quot;fake news&quot; story and featured it prominently on page one.</b></p> <p><b>Let me explain the &quot;methodology&quot; behind the &quot;Russian propaganda&quot; list: guilt by association.</b> Here&#39;s how this works. Say you&#39;re in a totalitarian state with a media controlled by a handful of state-corporate interests. (Sound familiar?)</p> <p>You have lunch with a colleague who is an acquaintance, discuss kids&#39; soccer and gripes about the boss, and you go home, thinking nothing of it.</p> <p><b>The secret police are waiting to arrest you.</b> Your crime is &quot;consorting with an &quot;enemy of the state:&quot; your colleague, unbeknownst to you, is considered an &quot;enemy of the state,&quot; and by having lunch with him, <b>you are guilty by association.</b></p> <p><b>This is the precise methodology of <i>The Washington Post&#39;s</i> shoddy &quot;fake news&quot; list of &quot;Russian propaganda&quot; websites.</b> Any association with an &quot;enemy of the state&quot; site like RT (Russia Today) convicts you by association of being an &quot;enemy of the state.&quot;</p> <p><b>Neither the &quot;fake news&quot; publishers of the list nor <i>The Washington Post</i> combed through the thousands of pages of blog posts on my site and identified those purported to be &quot;Russian propaganda.&quot;</b> They didn&#39;t bother, because, well, that would have taken some serious journalistic work.</p> <p><b>Instead, they labeled oftwominds.com as guilty by association.</b> Here is a chart of my guilt by association:</p> <p><img align="middle" border="0" class="wide" src="http://www.oftwominds.com/photos2016/WaPo-methodology1.png" width="550" /></p> <p><b>Just as a reminder, every major power funds international media outlets.</b> consider BBC (U.K.); Radio Liberty (USA); France 24 (France); NHK (Japan) and China&#39;s overseas broadcast empire.</p> <p>It doesn&#39;t take much of a dose of <i>cui bono</i> (to whose benefit?) to grasp that state-owned and operated media (even if it is at arm&#39;s length to maintain a claim to &quot;journalism&quot;) aim to paint the issuing state in rosy hues while publicizing the woes of its rivals.</p> <p><b>Even the most dimwitted mainstream media &quot;journalist&quot; grasps this obvious fact.</b> The rest of us certainly do.</p> <p><b>So let&#39;s extend <i>The Washington Post&#39;s</i> shoddy &quot;fake news&quot; methodology just a bit, to the sources of oftwominds.com&#39;s &quot;Russian propaganda.&quot;</b> Since oftwominds.com&#39;s content relies on statistics from these three websites, clearly they are <b>guilty by association.</b></p> <p>Here&#39;s the revised chart with another layer of &quot;Russian propaganda&quot; sites: <b>the U.S. Census Bureau, the I.R.S. and St. Louis Federal Reserve (FRED).</b> These sites are integral to oftwominds.com&#39;s output, and so <i>by supplying oftwominds.com with anti-status quo content, they too are guilty of wittingly or unwittingly spreading &quot;Russian propaganda.&quot;</i></p> <p><img align="middle" border="0" class="wide" src="http://www.oftwominds.com/photos2016/WaPo-methodology2.png" width="550" /></p> <p><b>This is the logic of totalitarianism--guilt by association.</b> Just in case you haven&#39;t seen the dozens of charts I use in my &quot;Russian propaganda&quot; from the St. Louis Federal Reserve (FRED), take a gander at this:</p> <p><img align="middle" border="0" class="wide" src="http://www.oftwominds.com/photos2016/wages-GDP5-16a.png" width="550" /></p> <p>My analysis <a href="http://www.oftwominds.com/blogmay15/self-employed5-15.html" target="resource"> Endangered Species: The Self-Employed Middle Class</a> relies on Bureau of Labor Statistics (BLS) and I.R.S. website data.</p> <p>My analysis on <a href="http://www.oftwominds.com/blogfeb10/high-cost-housing02-10.html" target="resource"> Why We Keep Getting Poorer: High-Cost Housing</a> is totally dependent on data drawn from the US Census Bureau website.</p> <p><b>Sorry, U.S. Census Bureau, I.R.S. and St. Louis Federal Reserve--you&#39;re issuing &quot;Russian propaganda&quot; according to <i>The Washington Post&#39;s</i> shoddy &quot;fake news&quot; methodology.</b> Your data enabled oftwominds.com and other independent journalist sites to issue content that was skeptical of official claims that are endlessly parroted by a bought-and-paid-for corporate media.</p> <p><b>You are guilty by association.</b> So go ahead, <i>Washington Post</i>, extend the logic of the absurdly threadbare &quot;methodology&quot; of your fake-news &quot;experts&quot; and add the U.S. Census Bureau, I.R.S. and St. Louis Federal Reserve to the list of websites that are guilty by association of &quot;Russian propaganda.&quot;</p> <p><b>Oh, and in case you didn&#39;t get the definition of &quot;Russian propaganda:&quot; it&#39;s anything that is skeptical or critical of America&#39;s ruling elite and its corporate-media shills.</b> Remember: America&#39;s ruling elite is so wonderful and our prosperity is so fantastic that <i>domestic dissent is impossible.</i> Any dissent must be the work of foreign devils.</p> <p><b>And that&#39;s why we&#39;re now swimming in the raw sewage of <i>The Washington Post&#39;s</i> &quot;fake news&quot;.</b></p> <p>&nbsp;</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="519" height="289" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161209_CHS.jpg?1481289826" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/census-bureau-irs-and-st-louis-fed-added-washington-posts-list-russian-propaganda-we#comments BLS Bureau of Labor Statistics Bureau of Labor Statistics Business Census Bureau China Communication Federal Reserve France I.R.S. Japan Media manipulation News Political communication Politics Propaganda Public opinion RT Social Issues St Louis Fed St. Louis Fed Television Totalitarianism U.S. Census Bureau US Federal Reserve Fri, 09 Dec 2016 13:24:53 +0000 Tyler Durden 580153 at http://www.zerohedge.com ECB Calls Italy's Bluff, Rejects Monte Paschi Request For More Time To Raise Capital http://www.zerohedge.com/news/2016-12-09/ecb-calls-italys-bluff-rejects-monte-paschi-request-more-time-raise-capital <p>Earlier this week, we <a href="http://www.zerohedge.com/news/2016-12-07/italy-threatens-ecb-blackmail-demands-more-time-monte-paschi-rescue">reported that according to the FT, </a>a suddenly empowered Rome was demanding that the ECB give it more time to rescue Italy's Monte Paschi show private bailout effort has effectively failed. What is surprising is that Italy was "<em>preparing to blame the bank for losses imposed on bondholders if Rome is forced into an urgent state bailout",</em> a negotiating tactic we dubbed at the time blackmail.</p> <p>The board of MPS, which has the Italian Treasury as its largest shareholder, was asking the supervisory arm of the European Central Bank to give it until mid-January to pull off a €5bn equity injection and try to avoid forcing losses on some debtholders as required under new EU bailout rules.&nbsp; And this is where the blackmail came&nbsp; in: cited by the FT, a person involved in the negotiations warned that “<strong>If they don’t give the extension, the ECB must take responsibility. They will be pushing the button. </strong>We are only asking for five more weeks.” </p> <p>According to Reuters, as of moments ago the ECB has called Italy's bluff, and the central bank "has rejected a request by ailing Italian lender Monte dei Paschi di Siena for more time to raise capital, a source said on Friday, in a move that piles pressure on the Italian government to bail out the bank." </p> <p><strong>The ECB's supervisory board turned down the request at a meeting on Friday on the grounds that a delay would be of little use and that it was time for Rome to step in, the source said. </strong></p> <p>The news follows an <a href="http://www.reuters.com/article/us-eurozone-banks-italy-esm-idUSKBN13Y119?il=0">earlier report </a>according to which the head of the euro zone bailout fund said it was not preparing financial support for Italy though some individual Italian banks have problems and need to raise capital, the head of the fund said on Friday. Klaus Regling spoke two days after the Italian daily La Stampa reported that Italy was set to ask the ESM for a loan of 15 billion euros, quoting sources from the Treasury. </p> <p><strong>"We are not preparing anything. There are lots of rumors ... but this is not the case, we have not been approached by the Italian government (for help)," </strong>Regling told reporters in the Finnish capital Helsinki. </p> <p>He said that Italy did not have a nationwide problem with its banking sector, despite the need of some individual lenders to raise more capital. "This is not at all like in 2009 or 2010 when we had several European countries with countrywide banking problems. Italy is not in that situation today," he said. "Banks are stronger; they have used the last few years to strengthen their capital." </p> <p>He added that the ESM had instruments available to respond to any future emergency. "In theory, we are available to take capital in banks, to do direct banking capitalization. We supported the Spanish banking system in 2012. But again, this is not under consideration."</p> <p>It may soon have to be. </p> <p>As <a href="http://www.reuters.com/article/us-eurozone-banks-italy-montepaschi-excl-idUSKBN13Y1H0?il=0">Reuters adds</a>, the Italian government is expected to intervene to recapitalize the bank to avert the risk of it being wound down. The failure of Monte dei Paschi could threaten the savings of thousands of retail investors, ripple across the wider banking sector and provoke a financial crisis in the euro zone's third-biggest economy. Italy faces the risk of early elections, and the prospect of an anti-euro party coming to power, after Prime Minister Matteo Renzi quit this week following the heavy defeat of his plan to reform the constitution in a weekend referendum.</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="780" height="502" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/monte%20paschi_0.jpg?1481288865" /> </div> </div> </div> http://www.zerohedge.com/news/2016-12-09/ecb-calls-italys-bluff-rejects-monte-paschi-request-more-time-raise-capital#comments Bailout Banca Monte dei Paschi di Siena Bank Banking in Italy Business Countrywide Economy European Central Bank European Central Bank European Central Bank European System of Central Banks European Union European Union Eurozone Italian government Italy Monte Paschi Reuters Fri, 09 Dec 2016 13:10:36 +0000 Tyler Durden 580152 at http://www.zerohedge.com