en Saudi Arabia To Trim Oil Exports To US To Force Inventories Lower <p><a href=""><em>Authored by Zainab Calcuttawala via,</em></a></p> <p>Riyadh plans to <strong>purposely <a href="">reduce exports</a> to the United States to force a reduction in the latter&rsquo;s sizeable inventories,</strong> which are preventing a greater rise in global oil prices, according to Saudi Oil Minister Khalid Al-Falih.</p> <p><a href=""><img height="305" src="" width="600" /></a></p> <p>Just one day after OPEC announced a nine-month extension to its November production cut deal, the top oil official told reporters on Friday that<strong> &ldquo;exports to the U.S. will drop measurably.&rdquo; </strong></p> <p>Two sources close to the matter told Bloomberg that<strong> starting next month, Saudi crude supplies to American importers will be reduced to below one million barrels a day next month</strong> &ndash; a 15 percent decrease from the monthly average so far in 2017.</p> <p><a href=""><img height="312" src="" width="600" /></a></p> <p>The Organization of Petroleum Exporting Countries&rsquo; (OPEC) deal does not set limits on the amount any member country can export to its customers.<strong> This is why Saudi cargoes to the U.S. in recent months have totaled 1.21 million barrels a day &ndash; the highest rates since 2014, the year of the oil price crash.</strong> As the de facto leader and largest producer of OPEC, Saudi Arabia has cut its production the most of any member of the bloc. But stubbornly high fossil fuel inventories - which have been maintained worldwide, but are most readily measured in the U.S. due to open customs data &ndash; have prevented the measures from buttressing oil prices in a lasting way. Importer nations have opted to take advantage of low oil prices to stock up for the future.</p> <p>The Energy Information Administration reports that<strong> American crude inventories have been on a <a href="">downward trajectory</a> in recent weeks, so the lower shipments may have a magnified impact as they are doled out.</strong></p> <p>Bloomberg also noted that <strong>Saudi Arabia generally has less oil to supply to the U.S. in summer months</strong> due to amplified domestic demand for cooling needs during the scorching desert summer.</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 303px;" /></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="537" height="273" alt="" src="" /> </div> </div> </div> Business Cartels Chronology of world oil market events Crude Economy Energy crisis Energy economics Energy Information Administration Oil reserves in Saudi Arabia OPEC OPEC Organization of Petroleum-Exporting Countries Petroleum industry Price of oil Saudi Arabia World oil market chronology from Sat, 27 May 2017 19:00:00 +0000 Tyler Durden 596799 at US Deploys Third Aircraft Carrier Toward North Korea <p>One month ago, <a href="">when we first discussed that in addition to the CVN-70 </a>Carl Vinson aircraft carrier group, the US was deploying two more carriers toward the Korean peninsula, some took the Yonhap-sourced report skeptically: after all, what's the incremental symbolic impact of having three, or even two aircraft carriers next to North Korea when just one would more than suffice. Then, two weeks ago, the report was proven half right when <a href=";linkId=37768098">US officials announced </a>that in addition to the first US carrier already on location, the US Navy is moving the USS Ronald Reagan aircraft carrier to the Korean Peninsula, where it would conduct dual-carrier training exercises with the USS Carl Vinson.</p> <p><a href=""><img src="" width="500" height="281" /></a></p> <p><em>Aircraft carrier CVN-76 Ronald Reagan </em></p> <p>After completing its maintenance period in Yokosuka, Japan, the USS Ronald Reagan departed for the Korean Peninsula on Tuesday, according to the Navy. "Coming out of a long in-port maintenance period we have to ensure that Ronald Reagan and the remainder of the strike group are integrated properly as we move forward," Rear Adm. Charles Williams said in a press release.&nbsp; Once it arrives in the region, the carrier will conduct a variety of training exercises but primarily focus on certifying its ability to safely launch and recover aircraft, the service said. In other words, training for combat missions involved the North Korean capital.</p> <p>We concluded our report from mid-May by saying that the US Navy may soon "further deploy the CVN-68 Nimitz, which was the third carrier reported to be eventually making its way toward Korea."</p> <p>We didn't have long to wait, <a href="">because on Friday the Kitsap Sun confirmed </a>what we reported initially over a month ago, namely that the USS Nimitz will depart Naval Base Kitsap-Bremerton on Thursday on its first deployment since 2013. Official details of the deployment were hazy, with spokeswoman Theresa Donnelly saying that The Nimitz-class aircraft carrier is expected to be in the western Pacific for six months with visits to the Middle East and Asia-Pacific, "though plans could change in response to world events."</p> <p>However, a subsequent report from <a href="">VOAnews </a>confirms that the ultimate destination is none other than the country the US will almost certainly attack next, North Korea: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>The United States is sending a third aircraft carrier strike force to the western Pacific region in an apparent warning to North Korea to deter its ballistic missile and nuclear programs, </strong>two sources have told VOA. The USS Nimitz, one of the world’s largest warships, will join two other supercarriers, the USS Carl Vinson and the USS Ronald Reagan, in the western Pacific.</p> </blockquote> <p>The Nimitz will lead Carrier Strike Group 11, which includes guided-missile destroyers USS Shoup and USS Kidd from Naval Station Everett, guided-missile destroyers USS Howard and USS Pinckney and guided-missile cruiser USS Princeton from San Diego, and a conglomeration of aircraft squadrons that comprise Carrier Air Wing 11, including Naval Air Station Whidbey Island-based Gray Wolves of Electronic Attack Squadron 142.&nbsp; </p> <p><em><a href=""><img src="" width="500" height="281" /></a><br />Aircraft carrier CVN-68 Nimitz</em></p> <p>After returning from its last deployment, the Nimitz underwent a 20-month maintenance and modernization period at Puget Sound Naval Shipyard that was completed in October. It has spent most of the past seven months at sea undergoing training and inspections in preparation for deployment. Now the ship and crew are ready to go, said commanding officer Capt. Kevin Lenox.</p> <p>"I am so incredibly proud of the entire Nimitz team and the terrific coordination and support across the entire strike group, especially in such a condensed training cycle," he said in a news release. "The crew stepped up to the plate, and I'm confident we're ready to meet whatever challenges lie ahead on our upcoming deployment."</p> <p>While it is rare for the U.S. military to deploy two carriers in the same region at the same time, it is almost unheard of to have three aircraft carriers in close proximity to each other absent current or imminent military action. Which may be the case soon: as VOA notes, North Korea’s growing nuclear and missile threat is seen as a major security challenge for Trump, who has vowed to prevent the country from being able to strike the U.S. with a nuclear missile.&nbsp; </p> <p>Sitting alongside Japanese Prime Minister Shinzo Abe, Trump said on Friday prior to the start of the G-7 meeting in Sicily that world leaders would have a “particular focus on the North Korea problem.” The White House issued a statement on Friday which said the two leaders have agreed to “enhance sanctions on North Korea” in an attempt to prevent the further development of North Korea’s ballistic missile and nuclear programs.</p> <p>Meanwhile, as <a href="">reported on Friday</a>, the U.S. military will test a system to shoot down an ICBM for the first time next week. It is intended to simulate a North Korean ICBM aimed at the U.S. The Missile Defense Agency said it will test an existing missile defense system on Tuesday to try to intercept an ICBM. The Pentagon has used the Ground-Based Midcourse Defense (GMD) system to intercept other types of missiles, but never an ICBM. The GMD has been inconsistent, succeeding in nine of 17 attempts against missiles without intercontinental range capability since 1999.</p> <p>So, perhaps as a contingency plan, the US will soon have not one, not two, but three aircraft carriers in the proximity of the Korean peninsula "just in case." The trip from Naval Station Everett is expected to take several weeks. Meanwhile, here is the latest deployment of US naval forces around the globe as of May 25, courtesy of <a href="">Stratfor</a>.</p> <p><a href=""><img src="" width="500" height="757" /></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="1023" height="575" alt="" src="" /> </div> </div> </div> Asia-Pacific Carrier air wing Carrier Air Wing Eleven Carrier Strike Group 1 Carrier Strike Group 11 Carrier Strike Groups Electronic Attack Squadron G-7 Japan Middle East Middle East Military Missile Defense Agency navy Nimitz Nimitz-class aircraft carriers None North Korea Pentagon Politics United States Navy United States Navy US military USS Carl Vinson USS Nimitz USS Ronald Reagan War White House White House Sat, 27 May 2017 18:50:45 +0000 Tyler Durden 596812 at Never Forget <p>The price of 'freedom'...</p> <p>&nbsp;</p> <p><a href=""><img src="" width="600" height="391" /></a></p> <p><a href=""><em>Source:</em><br /></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="1084" height="707" alt="" src="" /> </div> </div> </div> Commodity markets Elections in Dominica Elo rating system Pricing Technology Sat, 27 May 2017 18:30:00 +0000 Tyler Durden 596802 at One Bank Spots An "Amber Warning Sign" Inside The Vol Complex <p>In a time when record low volatility has spawned a cottage industry of vol and Vix experts, with analysts desperate to explain either why volatility is where it is - here the simplest explanation is not only the record injection of liquidity by central banks pushing risk assets to all time highs but the fact that even hedge funds appear to have thrown in the towel on alpha-generation and are barely trading, <a href="In general equity prices are negatively correlated with volatility, which is consistent with an emphasis on protection and levered exposure to the upside. Rising prices are associated with falling volatility and falling prices with rising volatility. Rising (and expectations of rising) prices convert call exposure into the underlying and reduce concern for the need for protection. Volatility demand is satisfied at lower volatility prices. Falling prices creates more concern for protection.">as shown last week</a>...<strong></strong> </p> <p><a href=""><img src="" width="500" height="422" /></a></p> <p>... or where it will go next, even though there is no causal link between backward-looking implied or realized vol and future events, few have come up with a comprehensive analysis or theory of which volatility metric is relevant or appropriate when discounting risk inflection points. </p> <p>One such recent attempt comes from Deutsche Bank's Dominik Constam who in his latest Global Market Strategy letter believes he has found what may be a fulcrum predictive vol indicator which, as he writes overnight, is "<strong>an amber warning sign that momentum in stocks might be peaking over the coming months.</strong>"</p> <p>As Konstam simply frames it, "in general equity prices are negatively correlated with volatility, which is consistent with an emphasis on protection and levered exposure to the upside. Rising prices are associated with falling volatility and falling prices with rising volatility. <strong>Rising (and expectations of rising) prices convert call exposure into the underlying and reduce concern for the need for protection. Volatility demand is satisfied at lower volatility prices. Falling prices creates more concern for protection.</strong>" </p> <p>That - absent any reference to Greek letters, to central banks, to CTAs and risk parity funds, or to vol ETFs - is about the simplest, and most accurate explanation for why vol is where it is at any given moment. What does it mean for the future?</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Spikes higher in correlation, <strong>either much less negative correlation or positive correlation therefore appear to be related to mature bull markets. </strong>The chart below shows change in correlation versus a year ago and there are coincident or near-coincident peaks in momentum viz June 2000, June 2006, October 2007, October 2009, March 2011 and March 2014. The move from extreme negative toward positive correlation likely reflects a causality whereby the demand for call exposure gives way to demand for put exposure as investors become invested in a rising market and more fearful of a turning point. <strong>This is reflected in a positive correlation between put-call volume ratios and the change in correlation</strong>.</p> </blockquote> <p>However, this time something has changed: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>It is therefore interesting that as volatility has remained low, <strong>the put call ratio has been falling as investors seek exposure to the rising SPX (buying more calls relative to puts). </strong>Moreover this has coincided with a sharp move higher in correlation momentum from a very negative -1.22 in March 2016 to the current +0.19 in April 2017 (correlation itself is still quite negative at -0.74 but it is the shift in momentum that we care about<strong>). </strong></p> </blockquote> <p><a href=""><img src="" width="500" height="397" /></a></p> <p>Konstam's conclusion: <strong>"This is an amber warning sign that momentum in stocks might be peaking over the coming months</strong>."</p> <p>Which, of course, will be true if "this time is not different", however when it comes to volatility, there are two problems. As we showed last August when we demonstrated a recent analysis by Horseman Capital's Russell Clark, "<a href="">The VIX Is Now Broken</a>" and furthermore, a recent scientific study has confirmed that <a href="">VIX is also manipulated</a>. As such any assumption, current or future, that vol will act in a "rational", market efficient manner, especially with the ECB and BOJ continuing to inject a record amount of liquidity into the system, may prove not only self-defeating but become a feedback loop whereby those who go long are forced to cell, pushing Vix even lower, making the divergence from "normal" that much greater. </p> <p>Incidentally, the best catalyst for a spike in vol may be far simpler: Trump is coming back. After all it was Trump that unleashed a nearly 6 sigma move in numerous vol metrics less than two weeks ago; it is therefore safe to expect that his return to the US will provide even more volatility fireworks in the days and weeks to come. </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="497" height="381" alt="" src="" /> </div> </div> </div> Alpha Bank of Japan Central Banks Economy European Central Bank Financial risk Hedge Mathematical finance S&P/ASX 200 VIX Technical analysis VIX Volatility Volatility Volatility smile Sat, 27 May 2017 18:17:00 +0000 Tyler Durden 596809 at McMaster Responds To Kushner's "Russia Back-Channel" Report <p>Having admitted that their <a href="">Memorial Day Weekend blockbuster scoop</a> that President Trump&#39;s son-in-law<em> &quot;discussed the possibility of setting up a secure communications channel between the Trump transition team and the Kremlin with Russian Ambassador Sergei Kislyak,&quot;</em>&nbsp; is <strong>really a non-story</strong> because, as they state themselves<em> &quot;It is common for senior advisers of a newly elected president to be in contact with foreign leaders and official,&quot; </em><a href=";wpisrc=nl_most&amp;wpmm=1">The Washington Post reports</a> that President Trump&#39;s national security adviser, H.R. McMaster agrees this is a non-story<strong>, saying Saturday he &quot;would not be concerned&quot; about having a back-channel communications system with Russia.</strong></p> <p><a href=""><img height="387" src="" width="600" /></a></p> <p><a href=";wpisrc=nl_most&amp;wpmm=1">WaPo reports </a>that McMaster and National Economic Council Director Gary Cohn, who together briefed reporters Saturday, were<strong> unwilling to discuss the Kushner matter, as was White House press secretary Sean Spicer.</strong> White House officials insisted the briefing be conducted off-camera, preventing photographers or television cameras from documenting it.</p> <p>As McMaster and Cohn took the stage in the briefing room, a television screen just over their shoulder played CNN, which at that moment aired a discussion of the Kushner-Russia story under a &quot;breaking news&quot; banner.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;We&#39;re not going to comment on Jared,&quot;</strong> Cohn said.</p> <p>&nbsp;</p> <p>&quot;We&#39;re just not going to comment.&quot;</p> </blockquote> <p>McMaster said he could not talk about Kushner&#39;s talks with Russia because &quot;it&#39;s not something that I&#39;ve in any way been involved with or that I have any knowledge of.&quot;</p> <p>However,<a href=";wpisrc=nl_most&amp;wpmm=1"> as WaPo reports,</a> McMaster, a decorated three-star Army general, was <strong>asked whether he would be concerned if an official on his National Security Council staff or elsewhere in the Trump administration sought a back-channel communications system with the Russian embassy or the Kremlin in Moscow. </strong>His response is telling...</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;No,&quot; McMaster said. &quot;We have back-channel communications with a number of countries. So, generally speaking, about back-channel communications, what that allows you to do is to communicate in a discreet manner.&quot;</strong></p> <p>&nbsp;</p> <p>He continued, <strong>&quot;No, I would not be concerned about it.&quot;</strong></p> </blockquote> <p><a href=";wpisrc=nl_most&amp;wpmm=1">The Washington Post reports </a>that <strong>the press conference grew more tense after that</strong>... we suspect the reason is clear, The White House would not be drawn into the non-story narrative that the entire press corps wants to run with for the weekend.</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="691" height="446" alt="" src="" /> </div> </div> </div> American Presbyterians Donald Trump First 100 days of Donald Trump's presidency H. R. McMaster McMaster Military personnel National Economic Council national security National Security Council Politics Presidency of Donald Trump Russian embassy Russian interference in the 2016 United States elections Sean Spicer Sergey Kislyak Trump Administration United States White House White House Sat, 27 May 2017 17:30:00 +0000 Tyler Durden 596804 at Intelligence Agencies Admit 23,000 Jihadis Live In Britain; 3,000 Pose "Imminent Threat" <p>After failing to thwart two terror attacks that have occurred in the U.K. so far this year &ndash; both of which were carried out by suspected jihadis who were known to U.K. authorities &ndash; <strong>intelligence agencies have identified 23,000 potential jihadis living in Britain, according to a report published in the <a href="">Times of London on Saturday.</a>&nbsp;</strong></p> <p>The report emerged after U.K. <strong>Prime Minster Theresa May downgraded the terror threat to &ldquo;severe,&rdquo; </strong>after raising it &ldquo;critical&rdquo; on Tuesday in the aftermath of the attacks.</p> <p>Of this &#39;pool&#39; of potential terrorists,<strong> 3,000 are suspected of posing an &ldquo;imminent threat&rdquo; </strong>and are being investigated accordingly, the Times reports. Meanwhile, the other 20,000 have been involved with past investigations and have been <strong>categorized as posing a &ldquo;residual risk.&rdquo;</strong></p> <p><a href=""><img src="" style="width: 500px; height: 283px;" /></a></p> <p>Both suspected Manchester attacker Salman Abedi and Westminster killer Khalid Masood were<strong> in a pool of &ldquo;former subjects of interest&rdquo; and were no longer the subject of surveillance efforts,</strong> the Times reported. Abedi, a 23-year-old whose parents immigrated to the U.K. from Libya, killed 22 kids, in addition to himself, on Monday when he detonated a bomb just as attendees of a concert by American singer Ariana Grande were rushing for the exits following her performance.</p> <p><strong>The report comes amid intensifying criticism of the intelligence agencies,</strong> who have been accused of doing an inadequate job identifying former &ldquo;subjects of interest&rdquo; who have returned to extremism.&nbsp;</p> <p>The notion that there are 23,000 potential jihadis in the U.K. is &ldquo;horrifying,&rdquo; said Anthony Glees, head of security and intelligence at the University of Buckingham.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>&ldquo;We should double the size of MI5, as we did in World War II, and expand the number of intelligence-led police by the thousands.&rdquo;</strong></em></p> </blockquote> <p>Meanwhile, thousands of soldiers will remain deployed on Britain&rsquo;s streets through Monday, <a href="">the Times reported.</a></p> <p>We leave it to Nigel Farage to sum up a nation&#39;s concerns...</p> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">UK authorities have identified 23,000 potential jihadist extremists. The problem is much worse than we first thought. <a href=""></a></p> <p>&mdash; Nigel Farage (@Nigel_Farage) <a href="">May 26, 2017</a></p></blockquote> <script async src="//" charset="utf-8"></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="566" height="320" alt="" src="" /> </div> </div> </div> Abdullah Yusuf Azzam British intelligence agencies Conservatism in the United Kingdom Crime Crime prevention Government Law enforcement Learning MI5 National security Nigel Farage Osama bin Laden Politics Prevention Privacy Safety Stateless people Surveillance Twitter Twitter University of Buckingham War War in Afghanistan Sat, 27 May 2017 17:05:49 +0000 Tyler Durden 596803 at Two White Women Forced To Close Burrito Shop Because Of "Cultural Appropriation" <p><a href=""><em>Authored by Mac Slavo via,</em></a></p> <p class="mol-para-with-font"><strong>There may not be a single notion among leftists that is more groan inducing than cultural appropriation.</strong> These people flip their lids every time someone borrows an idea from another culture. <strong>To them you&rsquo;re a racist if you act, speak, or dress like anyone who isn&rsquo;t from your tribe,</strong> or if you even celebrate their holidays. And of course, it generally only applies to white people, as if they&rsquo;re going to ruin every culture they touch.</p> <p class="mol-para-with-font"><a href=""><img height="432" src="" width="486" /></a></p> <p><u><strong>Now this petty belief is ruining reputations and livelihoods. </strong></u>It Portland, Oregon, it forced two successful business owners to close up shop. Kali Wilgus and Liz &lsquo;LC&rsquo; Connelly, who are two white women, started a burrito business several months ago called Kooks Burritos. It was an instant hit. <strong>Last week they revealed in an interview with a local newspaper, that they had learned <a href="" target="_blank">some of their recipes during a trip to Mexico</a>.</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p class="mol-para-with-font">Explaining their trip, Connelly told the newspaper:<strong> &lsquo;I picked the brains of every tortilla lady there in the worst broken Spanish ever, and they showed me a little of what they did.</strong></p> <p class="mol-para-with-font">&nbsp;</p> <p class="mol-para-with-font">&lsquo;In Puerto Nuevo, you can eat $5 lobster on the beach, which they give you with this bucket of tortillas. They are handmade flour tortillas that are stretchy and a little buttery, and best of all, unlimited.</p> <p class="mol-para-with-font">&nbsp;</p> <p class="mol-para-with-font">&lsquo;They wouldn&rsquo;t tell us too much about technique, but we were peeking into the windows of every kitchen, totally fascinated by how easy they made it look. We learned quickly it isn&rsquo;t quite that easy.&rsquo;</p> </blockquote> <p class="mol-para-with-font"><strong>After the article was published, social media lit up with accusations of cultural appropriation.</strong> The outrage snowballed after a writer for the <a href="" target="_blank">Portland Mercury</a> slammed the two women for cultural appropriation, and &ldquo;colonizing&rdquo; recipes from Mexican cuisine.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p class="mol-para-with-font">&lsquo;This week in white nonsense, two white women&mdash;Kali Wilgus and Liz &lsquo;LC&rsquo; Connely&mdash;decided it would be cute to open a food truck after a fateful excursion to Mexico,&rsquo; the piece opened.</p> <p class="mol-para-with-font">&nbsp;</p> <p class="mol-para-with-font"><em><strong>&lsquo;The owners of Kooks Burritos all but admitted in an interview with Willamette Week that they colonized this style of food.</strong></em></p> <p class="mol-para-with-font">&nbsp;</p> <p class="mol-para-with-font">&lsquo;So let&rsquo;s recap the story thus far: These two white women went to Mexico, ate tacos, and then decided they would just take what the locals clearly didn&rsquo;t want to give them.</p> <p class="mol-para-with-font">&nbsp;</p> <p class="mol-para-with-font">&lsquo;If that wasn&rsquo;t bad enough, they decided to pack up all their stolen intellectual property and repackage it.&rsquo;</p> </blockquote> <p class="mol-para-with-font"><strong>The business was also eviscerated on Yelp by hyperventilating social justice warriors.</strong></p> <p class="mol-para-with-font"><img alt="cultap3" class="alignnone size-full wp-image-45373" src="" style="width: 486px; height: 442px;" /></p> <p class="mol-para-with-font"><img alt="cultap2" class="alignnone size-full wp-image-45375" src="" style="width: 485px; height: 332px;" /></p> <p class="mol-para-with-font"><img alt="cultap1" class="alignnone size-full wp-image-45374" src="" style="width: 486px; height: 532px;" /></p> <p class="mol-para-with-font"><em>Somehow, I find it quite funny that there&rsquo;s some sad sack out there, cautiously protecting his precious tortilla recipe from white people, but I digress.</em></p> <p class="mol-para-with-font"><strong>Amid this backlash, the two women have shut down their business, seemingly without comment. </strong>Their website, Facebook account, Instagram account, and Twitter profile have all disappeared. And all because they were white people who had the audacity to serve burritos to the public.</p> <p class="mol-para-with-font">Cultural appropriation is a bizarre concept when you think about it. It demands that you treat every culture like an animal in a zoo. You can admire them from afar, but don&rsquo;t you dare touch.</p> <p class="mol-para-with-font">It&rsquo;s also a sign of <strong>severe cognitive dissonance among leftists.</strong> They claim they want everyone in the world to mix and live in peace, but they<strong> snap at people who dare to share another culture</strong>.</p> <p class="mol-para-with-font">Ironically, it <strong>sounds an awful lot like regular old racism.</strong> It used to be that liberals fought ideologies that segregated races and cultures. Now these people are fighting for the same thing that racists in the past fought for; which is to maintain the purity of certain races and cultures. And just as it was in the past, this deluded belief is ruining lives.</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="486" height="432" alt="" src="" /> </div> </div> </div> Cognitive Dissonance Mexico Newspaper Twitter Twitter Sat, 27 May 2017 16:22:03 +0000 Tyler Durden 596763 at Mortgage Rates Tumble To 6-Month Lows <p><em><strong>After a week of dismal housing data, a silver lining perhaps.</strong></em> The spike in U.S. mortgage rates since the November presidential election has been cut in half.</p> <p>As Bloomberg notes, the average rate on a&nbsp;30-year fixed mortgage&nbsp;dropped in the week ended Thursday to a <strong>six-month low of 3.95 percent,</strong> according to Freddie Mac data.</p> <p><a href=""><img height="319" src="" width="600" /></a></p> <p><strong>In the seven weeks after the election, borrowing costs increased by 75 basis points to 4.32 percent at the end of December, the highest since April 2014.</strong></p> <p>They&rsquo;ve since managed to retreat 37 basis points - potentially good news for homebuyers and builders as the spring selling season continues to disappoint.</p> <p><a href=""><em>As MishTalk&#39;s Mike Shedlock reminds us</em></a>: Lawrence Yun, NAR chief economist, says &ldquo;Demand is easily outstripping supply in most of the country.&rdquo;</p> <p><em><strong>How long can Yun&rsquo;s silly argument go on?</strong></em></p> <p><u><em><strong>There is not a supply shortage. Rather, there is a supply shortage of homes people can afford at which buyers are willing to sell. If homes were priced to sell, more homes would sell.</strong></em></u></p> <p>Despite rising prices, buyers want higher prices than they can get. At some point, rising prices were bound to choke off sales.</p> <p>It&rsquo;s too early to conclude a sustainable downtrend in housing has started, but if it has,<strong> it would be on top of an overall slowdown in consumer spending led by a slowdown in auto sales.</strong></p> <p>Here is my estimate of the economic and Fed consensus: <strong><em>Don&rsquo;t worry, it&rsquo;s just a temporary soft patch in March, April, and May. The second <strike>quarter </strike>half recovery is still on schedule.</em></strong></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="510" alt="" src="" /> </div> </div> </div> Auto Sales Borrowing Costs Business Economic history of the United States Economics Economy Economy of the United States Finance fixed Freddie Mac Freddie Mac Loans Mortgage industry of the United States Mortgage loan recovery United States housing market correction US Federal Reserve Sat, 27 May 2017 15:52:15 +0000 Tyler Durden 596694 at Bitcoin 'Crashes' To 1-Week Lows - The Difference Between Fear And Concern <p><strong>Bitcoin dropped over $900 from its record high at $2760 </strong>on Thursday in the last 48 hours, but has bounced back to remain <strong>up 17% week-over-week</strong>.</p> <p>A 30% drop from Thursday&#39;s highs...</p> <p><a href=""><img height="333" src="" width="600" /></a></p> <p>&nbsp;</p> <p>But Bitcoin is still up around 140% year-to-date...</p> <p><a href=""><img height="315" src="" width="600" /></a></p> <p>While the volatility is unprecedented, <a href="">Liberty Blitzkrieg&#39;s Mike Krieger</a> notes it is indicative of the emotional excesses as investors experience the<strong> difference between fear and concern of what lies ahead for the global financial system</strong> (and indeed the status quo).</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 246px;" /></a></p> <p><strong>The last 24 hours were&nbsp;quite interesting for me, </strong>and have sparked all sorts of thoughts and tangents&nbsp;in my mind. I&rsquo;ve been absolutely thrilled that yesterday&rsquo;s post,&nbsp;<a href="" rel="bookmark noopener noreferrer" target="_blank" title="Permanent Link to A New Financial System is Being Born">A New Financial System is Being Born</a>, has been so well received in the broader Bitcoin/crypto/tech world, but I also noticed a meaningful contradiction. While the post has been cheered&nbsp;beyond the confines of this website, within <em>Liberty Blitzkrieg</em> itself, it hasn&rsquo;t been celebrated by anyone, at least not publicly in the comment section. In fact, if you scroll through the comment section of the post, you&rsquo;ll see it&rsquo;s <strong>basically 100% skepticism or dislike for Bitcoin. The reason I find this so interesting is because of what it tells me about sentiment.</strong></p> <p>I&nbsp;got&nbsp;a lot of insight from the comment section of this particular post because I know for a fact many of my readers love Bitcoin and have been involved in it for years. I know this based on private conservations I&rsquo;ve had as well as many donations over the years. In a euphoric market environment, I&rsquo;d expect the comment section to yesterday&rsquo;s post to be filled with gloating, giddiness and &ldquo;to da moon&rdquo; commentary. There was absolutely none of that. In contrast, the skeptics were out in full force and totally dominated the discussion, which is fine. I want people to express different opinions and feel like they have the space to totally disagree with something I write. At the same time, it does tell me something about overall sentiment. The people who are long and sitting on gains are largely keeping their mouths shut, while the skeptics are very, very vocal. It&rsquo;s not just here either, <strong>the skepticism and dislike for Bitcoin is even&nbsp;more prevalent within my Twitter feed. Incredibly, despite the recent enormous run, Bitcoin sentiment seems cautious-to-negative. Take that&nbsp;information as you see fit.</strong></p> <p>This sets the stage for the key part of this&nbsp;post which relates to<strong> the difference between fear and&nbsp;concern.</strong> One of these is a largely unproductive emotional state, while the other is a rational response to potential or real trouble. The reason Bitcoin sparked my interest in the topic is&nbsp;because I&rsquo;ve witnessed&nbsp;a lot of people miss the Bitcoin run due to irrational fear, as opposed to reasoned concern. This isn&rsquo;t to gloat about Bitcoin, or predict its future price. Pretty much everyone involved in this space for more than a few days&nbsp;understands&nbsp;that its price could completely collapse any minute and, despite all its advances, Bitcoin remains an experimental project that could end up worthless. I knew that back in 2012 when I first became involved and I know it now, yet&nbsp;I got involved anyway. Why did I do that?</p> <p><strong>The main reason is because I could see the potential and didn&rsquo;t&nbsp;allow myself to make decisions based on&nbsp;fear.</strong> Fear overwhelms you, stunts your growth, makes you miss out on opportunities, and ultimately&nbsp;prevents you from living&nbsp;a fulfilled, interesting life. I know plenty of people who saw the potential of Bitcoin, but didn&rsquo;t buy any or embrace it out of fear alone. Fear governments wouldn&rsquo;t allow it. Fear the power grid would go down. Fear they&rsquo;d be hacked. Fear overwhelmed them and prevented them from&nbsp;becoming involved&nbsp;in one of&nbsp;the few areas of this terribly corrupt economy filled with actual innovation and optimism. In my years in this space, I&rsquo;ve found crypto currency people (especially the old school ones), to be some of the most humous, talented, decent and optimistic people I&rsquo;ve ever met. So what if it goes to zero? The whole journey has been one of the most interesting of my entire life and worth every minute. As I noted on Twitter earlier today...</p> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Brilliant, talented people are out there doing stuff, fearful envious people are warning me of doom.<br />Gonna bet with the former.</p> <p>&mdash; Michael Krieger (@LibertyBlitz) <a href="">May 26, 2017</a></p></blockquote> <script async src="//" charset="utf-8"></script><p>Which brings me to concern. While I always&nbsp;acknowledged many&nbsp;of the things Bitcoin skeptics pointed out, my response was concern, not fear. Concern allowed me to think things through and determine an appropriate allocation to something as unproven and risky as Bitcoin, but it didn&rsquo;t propel&nbsp;me to avoid something I believed in and wanted to support. Concern is normal and healthy. It helps you take calculated risks and prompts reasonable measures to insure against catastrophe. <strong>Concern doesn&rsquo;t freeze you up. It doesn&rsquo;t prevent you from taking action or embracing new experiences. Fear does.</strong></p> <p><strong>Fear is a negative emotion and mindset that only holds you back. </strong>It prevents calculated risk-taking, without which us humans would still be shivering in caves somewhere. We&rsquo;ve all heard the saying &ldquo;fortune favors the bold,&rdquo; but you&rsquo;ve never heard anyone say &ldquo;fortune favors the fearful.&rdquo; <strong>That&rsquo;s because it doesn&rsquo;t.</strong> And by fortune, we&rsquo;re&nbsp;not just talking material wealth. We&rsquo;re&nbsp;talking mental health, a breadth of experience and the joy and fulfillment that comes from a life of action as opposed to existing in a state of doom and gloom.</p> <p>Of course, there are times when fear is appropriate and beneficial, but I&rsquo;d argue pretty much only&nbsp;when you&rsquo;re faced with a life or death situation, like in the middle of a war zone or being attacked by a wild animal. Fight or flight is very well established&nbsp;element of the human being for good reason, but unless you&rsquo;re in a situation of extreme distress or danger, it&rsquo;s almost always better off to avoid this&nbsp;state of mind.</p> <p>I previously touched on this concept in my series on Spiral Dynamics. Here&rsquo;s what I noted in the piece titled,&nbsp;<strong><a href="" rel="noopener noreferrer" target="_blank">What is Spiral Dynamics and Why Have I Become So Interested in It?</a></strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>All of the madness being perpetrated by the media and divisive pundits on both sides needs to be seen in the context&nbsp;of this unfolding of consciousness. These people are in the fight for their lives to keep the current paradigm they are comfortable with alive. If you accept this view, then you recognize the importance of staying true to your values and not regressing back into first-tier type thinking. As Wilber and others explain, these are fluid states, so periods of stress or fear can&nbsp;result&nbsp;in a regression of consciousness. It&rsquo;s not an exaggeration to say that preventing this from happening is of the utmost significance.</strong></em></p> </blockquote> <p>Expanding our consciousness is probably the most important work any of us can do on an&nbsp;individual basis, and fear is characteristic of the most base level of consciousness. As Ken Wilber described it:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>&nbsp; &nbsp;<span class="title2">1.&nbsp;Beige: Archaic-Instinctual</span>. The level of basic survival; food, water, warmth, sex, and safety have priority. Uses habits and instincts just to survive. Distinct self is barely awakened or sustained. Forms into&nbsp;survival bands&nbsp;to perpetuate life.&nbsp;</em></p> <p><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where seen: First human societies, newborn infants, senile elderly, late-stage Alzheimer&rsquo;s victims, mentally ill street people, starving masses, shell shock. 0.1% of the adult population, 0% power.&nbsp;</em></p> </blockquote> <p><strong>People living a life consumed by fear are in many ways living as if they are mentally ill. Living life in fear is a voluntary choice for most of us, and it&rsquo;s one of the most unproductive, unhealthy lifestyle choices a human being can make.</strong></p> <p>Which brings me to the point of this post. While it was inspired by some of the stuff I&rsquo;ve witnessed related to Bitcoin and various people&rsquo;s responses to it, it&rsquo;s about much more than that. It&rsquo;s about sharing some of the things I&rsquo;ve learned over the years based on my own painful mistakes. I&rsquo;ve found that it&rsquo;s always better to be open-minded than stubborn, and that it&rsquo;s always better to be a person of action as opposed to someone living in fear. Fear will bring nothing to you and those around you but misery and happiness. Concern is fine, but how you respond to the concern is what matters. Are you going to cower in a corner, or are you going to try to do something about it?&nbsp;<strong>Karma is action, and action is a huge part of being&nbsp;human. </strong></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="1627" height="902" alt="" src="" /> </div> </div> </div> Bitcoin Currency None Twitter Twitter Volatility Sat, 27 May 2017 15:16:24 +0000 Tyler Durden 596797 at British Airways Cancels All Flights From London After Global IT Outage <p>British Airways canceled all flights from London's Heathrow and Getwick airports scheduled before 6 pm, after a global computer system outage caused massive delays and left planes stuck on runways. Earlier on Saturday, there were reports of BA staff telling disgruntled passengers trying to get away for the Bank Holiday weekend that the company was under cyber attack but this was denied by the airline.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en"><a href="">#Breaking</a> British Airways apologises to customers who are facing delays "following an IT outage"</p> <p>— Press Association (@PA) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><p>The airline said terminals at Heathrow and Gatwick had become extremely congested because of the IT failure and all BA flights scheduled before 1700 GMT had been canceled. he airline also advised passengers against coming to the airports as it would not be able to help them.</p> <p> <iframe src="" width="500" height="281" frameborder="0"></iframe></p> <p>"Please do not come to the airports. We have experienced a major IT system failure that is causing very severe disruption to our flight operations worldwide," the airline said in a statement.&nbsp; "We are extremely sorry for the inconvenience this is causing our customers and we are working to resolve the situation as quickly as possible."</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">We apologise for the current IT systems outage. We are working to resolve the problem as quickly as possible.</p> <p>— British Airways (@British_Airways) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><p>Passengers who were already at the airports were angry with the resulting chaos:&nbsp; </p> <p><img src="" width="500" height="876" /></p> <p>"Still on the tarmac at Leeds. #britishairways reckon Heathrow is so backed up we can't set off. No way we'll make our Vegas flight," one passenger David Raine wrote on Twitter.</p> <p>Another, journalist Martyn Kent, wrote: "Sat on plane at Heathrow for hour and a half now. @British_Airways Captain describes IT problem as 'catastrophic'."</p> <p>Passenger Roshni Burt, who was flying from Heathrow to Bahrain with her young son, said there was no news about when her flight would depart.</p> <p>"When we left the check-in area there were angry people, people getting frustrated that their flights were coming up or near to departure, people getting turned away ... with BA staff basically saying 'if you've not checked in online, you've missed your flight'," she told Sky News.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Flying with <a href="">@British_Airways</a> from <a href="">@HeathrowAirport</a> ? Don't bother <a href="">#britishairways</a> <a href=""></a></p> <p>— Chris Ship (@chrisshipitv) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">Heathrow Airport right now. Thanks to <a href="">#BritishAirways</a> systems crashing. All flights delayed so make sure to give yourself plenty of time <a href=""></a></p> <p>— Philip Napiorkowski (@ukphillad) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">Terminal 5 in <a href="">#Heathrow</a>-huge lines from system outage <a href=""></a></p> <p>— Lesley Mancuso (@lesallyn) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><p>The official Twitter account of Heathrow Airport, the busiest airport in Europe, confirmed the IT failure abd said it was working with BA. </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">We're working with <a href="">@British_Airways</a> following an issue with their IT system this morning that has caused some delays for passengers. 1/2</p> <p>— Heathrow Airport (@HeathrowAirport) <a href="">May 27, 2017</a></p></blockquote> <script src="//"></script><p>Following initial reports that the ground halt was the result of a computer hacks, British Airways refuted media claims that the outage had been caused by a cyber attack, saying that there was no evidence to support that.</p> <p>The problems, which passengers said were had affected flights across Britain, came on a particularly busy weekend with a public holiday on Monday and many children starting their school half-term breaks. </p> <p>BA became the latest airline to be hit by computer problems. Last month Lufthansa and Air France suffered a global system outage which prevented them from boarding passengers. Passengers trying to catch planes in Britain on Saturday reported long delays at check-in desks and flights being held on runways. </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="1200" height="695" alt="" src="" /> </div> </div> </div> Airport Aviation British Air Transport Association British Airways British brands European Low Fares Airline Association France Gatwick Airport Heathrow Airport Heathrow Airport Holdings London Borough of Hillingdon London boroughs Press Association Twitter Twitter US Airways Sat, 27 May 2017 14:42:41 +0000 Tyler Durden 596796 at