en Deutsche Bank CEO Warns Of "Fatal Consequences" For Savers <p>Deutsche Bank's war of words with the ECB is not new: it was first unveiled in February when, as we wrote at the time "<a href="">A Wounded Deutsche Bank Lashed Out At Central Bankers: Stop Easing, You Are Crushing Us</a>." Europe's largest bank, with the massive derivatives book, then upped the ante several months later in June, when its chief economist Folkerts-Landau launched a shocking anti-ECB rant in <a href="">which it warned of social unrest and another Great Depression</a>. </p> <p>Ironically, these infamous diatribes hurt more than helped: telegraphing to the market just how hurt DB was as a result of the ECB's monetary policy, the market punished its stock, which has been recently trading within spitting distance of all time lows, in effect making Deutsche Bank's life even harder as it now has to contend not only with its own internal profitability problems, but also has to maintain a market-facing facade that all is well. So far, it has not worked out very well, prompting numerous comparisons to <a href="">another infamous bank</a>. </p> <p>&nbsp;</p> <p><a href=""><img src="" width="503" height="277" /></a></p> <p>So, in what may have been DB's loudest cry for help against the ECB's unwavering commitment to rock-bottom interest rates, the bank's CEO, John Cryan, warned in a guest commentary ahead of the Handelsblatt Banking Summit titled, appropriately enough "Banks in Upheaval", to be held in Frankfurt on August 31 and September 1, that “<strong>monetary policy is now running counter to the aims of strengthening the economy and making the European banking system safer.</strong>"</p> <p>However, his most striking warning was not aimed at Mario Draghi, but at Germany itself - and ostensibly his own clients - implicitly suggesting that if Deutsche Bank goes down it is taking everyone down with it, when, as cited by Bloomberg, he warned of <strong>“fatal consequences" for savers and pension plans </strong>while “<strong>companies refrain from investments due to ongoing uncertainty and demand less loans</strong>.”</p> <p><a href=""><img src="" width="500" height="312" /></a></p> <p>The details are known to those who have followed the paradox of central bank failure - if only for the economy and ordinary people -&nbsp; summarized <a href="">earlier today by Citi's Matt King</a>. </p> <p>Quoted by <a href="">Handelsblatt</a>, Cryan warned that "the ECB’s policy is squeezing the margins of Europe’s struggling banks, making it harder for insurers to find profitable investments and dangerously distorting financial market prices." Meanwhile, he added, the hoped-for benefits haven’t materialized. “Given the continued uncertainty, companies are holding back on investments and are hardly seeking any credit anymore,” he wrote. </p> <p>He added that it was unacceptable that financial regulators demanded that banks increase their safety cushions but then imposed punitive interest rates on these additional reserves.</p> <p>Many agree with Cryan:"The hoped for pan-European investment boost hasn’t happened, and neither have the expected structural reforms in the affected euro member states,” said Georg Fahrenschon, president of the German Savings Bank Association. Instead, uncertainty is growing throughout the euro zone in light of the “horrendous sums of money the ECB is now directly pumping into the markets,” he added.</p> <p>While Cryan admits that the ECB's intervention did avoid an all out collapse in Europe it has done so at extreme costs, like negative rates on most German debt. Which is why, Cryan writes it is high time for a change in direction at the ECB. He would say that: <strong>his bank is in the midst of a painful restructuring and battling to keep the confidence of investors, so the side effects of the ECB’s policy are causing it particular pain. </strong>That’s one reason why Mr. Cryan is particularly critical of the negative interest rate on bank deposits at the ECB. He said net interest income, traditionally the most important pillar of bank earnings in the euro zone, <strong>had fallen by 7 percent since 2009</strong>.</p> <p>Martin Lück, strategist at Blackrock, the world’s largest asset manager, agrees with Cryan and fears that the ECB's actions are having the opposite effect of the spending spree intended. With interest rates falling, people have to save more rather than less to secure their pensions. And the punitive banks are weakening banks and forcing them to curb their lending, he said. Insurers and pension funds were also being hit because they had to enter ever higher risks to secure returns on their investments. This has become evident with the slide in yields into negative territory on many sovereign bonds including 10-year German government paper. These securities are the backbone of the insurers’ investments.</p> <p>Private investors face the same problem. If they don’t want to take higher risks, for example by investing in stocks, “then they must save substantially more than before to secure their pension,” said Frank Engels, head of fixed income fund management at Union Investment.</p> <p>Meanwhile, the beneficiaries of the ECB's asset reflation policy are few: <strong>only around nine million Germans own stocks, just over 10 percent of the population. </strong>The risk is now that savings will lie dormant in bank accounts without earning interest. Germany’s central bank, the Bundesbank, has calculated that Germany had a savings ratio of 9.7 percent for 2015, the highest level since 2010, and it’s likely to rise further in 2016. In the first quarter it was up 0.2 percentage points above the year-earlier level.</p> <p>Worse may come if Cryan's fatalistic warning comes true: after all, few CEOs ever talk of "fatal consequences", especially since the context of these words has become so very clear.</p> <p>* * * </p> <p>So what, according to the CEO, is the only lifeline available to European banks, and to savers, in Europe? In his guest comment, Cryan said that an EU banking union was an important step that should be followed by a capital markets union, which become more important in order to provide the much needed funding for companies as banks shrink their balance sheets. In short, a continent-wide backstop system. </p> <p>The warnings for savers could not be any clearer.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="620" height="387" alt="" src="" /> </div> </div> </div> Blackrock Capital Markets Deutsche Bank fixed Germany Great Depression Monetary Policy Thu, 25 Aug 2016 09:48:16 +0000 Tyler Durden 570529 at Heading Down The J-Hole: "The Fed Isn't Hawkish" <p><span style="text-decoration: underline;"><strong>The Fed isn&rsquo;t hawkish</strong>,</span> exclaims Bloombergs Mark Cudmore. In fact, in relative terms, recent rhetoric has been long-term dovish, which means <strong>the dollar will likely break the lower end of its range soon.</strong></p> <p><em><strong>&ldquo;Rubbish,&rdquo;</strong></em> I hear you cry.<em> &ldquo;Look at all the headlines we&rsquo;ve had from Fed speakers in the past week. Look at Fed futures! The probability of a rate hike by year end has climbed.&rdquo;</em></p> <p><img height="312" src="" width="600" /></p> <p>Beyond the consistent headlines talking up an imminent Fed hike or regurgitating the truism that every meeting is &ldquo;live,&rdquo;<u><strong> the substance of recent commentary from policy makers has been notable for its balance, and that&rsquo;s a dovish shift</strong></u>.</p> <p>While they&rsquo;ve desperately tried to assure the market that they still hope to raise rates soon, <strong>they&rsquo;ve also reiterated that the neutral rate is perhaps much lower than envisioned.</strong></p> <p>By citing the many issues potentially preventing a sustained hiking cycle, they&rsquo;re<u><strong> subtly acknowledging the &ldquo;one and massive pause&rdquo; theory that the market has been pushing for a while.</strong></u></p> <p>That&rsquo;s why the yield<strong> curve has flattened further even as the probability of a 2016 move increases... <u><em>&quot;fool me a 4th time and I lose all faith in The Fed&quot;</em></u></strong></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 299px;" /></a></p> <p><strong>The dollar rallied hard for 18 months from mid-2014 on the premise that the Fed was on the verge of beginning a wholehearted hiking cycle.</strong></p> <p>It finally raised rates in December 2015, and the dollar has weakened since then. What happened? <em><strong>Everyone realized that the hiking cycle would be significantly slower than anticipated.</strong></em></p> <p>The market has consistently been more dovish than the Fed, and correctly so. <strong>The next step is for the committee to converge to the fact that a sustained hiking cycle is a myth</strong>. Sure, a hike this year is very possible, as well as perhaps another one next year. But rates are not roaring higher any time soon.</p> <p><strong>Fed rhetoric is tacitly starting to admit this fact through all the statements questioning the whole policy framework.</strong> Indeed, that is the <strong>whole focus of this weekend&rsquo;s Jackson Hole economic symposium</strong>.</p> <p><span style="text-decoration: underline;"><strong>The most hawkish people left are the media</strong></span> who love the excitement of a will-they-won&rsquo;t-they story. <em><strong>Once the real story emerges, the dollar may face serious long-term downside.</strong></em></p> <p>The 1,150 support in the Bloomberg Dollar Index has held repeatedly during the past 18 months...</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 322px;" /></a></p> <p><u><strong>It&rsquo;s unlikely to hold much longer and could even be broken as soon as Jackson Hole comments are assessed</strong></u>.</p> <p>Even more interesting, perhaps, is the<strong> relative call to be made between the Fed policy shift and the macro environment.</strong> BofAML&#39;s Michael Hartnett lays out a framework for thinking about this relationship below:</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 525px;" /></a></p> <p>&nbsp;</p> <ul> <li>Dovish Fed &amp; stronger macro: yield curve bull steepens (short-rates fall faster than long-rates)&hellip;bullish combo for risk assets = OW equities, credit, commodities &amp; EM equities until market corrects as investors think the Fed is &ldquo;behind the curve&rdquo;;</li> <li>Hawkish Fed &amp; stronger macro: yield curve bear steepens (long-rates rise faster than short-rates)&hellip;renewed animal spirits &amp; proof of &ldquo;Quantitative Success&rdquo; = OW US$, value, banks/cyclicals &amp; EAFE equities;</li> <li><strong>Dovish Fed &amp; weaker macro: yield curve bull flattens (long-rates fall faster than short-rates)&hellip;secular stagnation worries deepen = OW govt bonds, gold, growth &amp; US equities;</strong></li> <li>Hawkish Fed &amp; weaker macro: yield curve bear flattens (short-rates rise faster than long-rates)&hellip;recession risk rises = OW cash, vol and defensives.</li> </ul> <p>Right now we have &quot;hawkish&quot; Fed pricing into Fed Funds with a drastically-weakening macro picture...</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 301px;" /></a></p> <p>&nbsp;</p> <p>We suspect - post J-Hole - that the market&#39;s realization of a &quot;dovish&quot;-er Fed and a weaker macro backdrop will be realized, and as BofA just explained - that is good for bonds, gold, and bull-flattening collapse in the curve (which is already starting).</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="568" height="497" alt="" src="" /> </div> </div> </div> headlines Recession Yield Curve Thu, 25 Aug 2016 09:45:00 +0000 Tyler Durden 570537 at Another Cog In The Exploding Resentment Wheel <p><em style="line-height: 20.8px;"><span style="color: #800000;">By Chris at&nbsp;<a href=""></a></span></em></p> <p><em>Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing.</em> </p> <p> Welcome to this week's edition of&nbsp;<strong>“World Out Of Whack”</strong>&nbsp;where every Wednesday we take time out of our day to laugh, poke fun at and&nbsp;present to you&nbsp;absurdity in global financial markets in all it's glorious insanity. </p> <p> <img src="" alt="kramer" width="200" height="189" style="display: block; margin-left: auto; margin-right: auto;" class="size-full wp-image-15484 aligncenter" /></p> <p>While we enjoy a good laugh, the truth is that the first step to protecting ourselves from losses is to protect ourselves from ignorance. Think of the&nbsp;"World Out Of Whack"&nbsp;as your double thick armour plated side impact protection system&nbsp;in a financial world littered&nbsp;with&nbsp;drunk drivers.</p> <p><span style="font-weight: 400;">Selfishly we also know that the biggest (and often the fastest) returns come from asymmetric market moves. But, in order to identify these moves we must first identify where they live.</span> </p> <p> <span style="font-weight: 400;">Occasionally we find opportunities where we can buy (or sell) assets&nbsp;</span><span style="font-weight: 400;">for mere cents on the dollar&nbsp;</span><span style="font-weight: 400;">-&nbsp;because, after all, we are capitalists.</span></p> <h3 style="text-align: center;"><span style="color: #339966;">In this week's edition of the WOW we're covering rising inequality</span></h3> <p> Warning signs are flashing everywhere that the status quo isn't being tolerated anymore. We know that the&nbsp;elites are&nbsp;getting a little nervous and&nbsp;the natives... well, they are getting restless. </p> <p> Seemingly left field events&nbsp;such as <a href="" target="_blank">Brexit,</a>&nbsp;the rise of right-wing political parties in Europe, and the "surprising" popularity of <a href="" target="_blank">Trump</a> are concerning the establishment and so they should. </p> <p> I discussed in <a href="" target="_blank">"World Out Of Whack - The Shifting Zeitgeist"</a><strong>&nbsp;</strong>one element contributing to&nbsp;this. In that post I discussed&nbsp;the fact that a shrinking middle class is a key puzzle piece to the political changes unravelling&nbsp;in front of us. A&nbsp;shrinking middle class, however&nbsp;tells&nbsp;only half of the story.</p> <p>Another aspect is how people view their position in societies. How Joe Sixpack thinks of himself relative to the rest of his countryman is really important in understanding behavioural economics. Let's dig in. </p> <h3><strong>Theory</strong></h3> <p> Remember when your&nbsp;parents told you that talking to the schoolyard bully was the best way to deal with him, and after a blood nose and black eye you realised that, no, their theory was rubbish&nbsp;and the only way to deal with him was a sharp unsuspected kick in the nuts?</p> <p>Well, the truth is standard economic theory is rubbish too. Human behaviour is far from rational.</p> <p>Universities teach standard economics where we're led to believe&nbsp;that all human decisions are rational and informed, motivated by an accurate concept of the worth of all goods and services and the utility all decisions are likely to produce. </p> <p> This is of course where the efficient market hypothesis nonsense stems from. </p> <p> I've made a point in these pages of discussing relativity before because it's so important in&nbsp;behavioural economics. Standard economics doesn't speak of it. </p> <h3><strong>Relativity</strong></h3> <p> We value things on a relative basis, which is to say we search for a benchmark. It's how we find a way of "grounding" our decisions and finding a justification allowing us to get comfortable with them. Often decisions are irrational and predictably so.</p> <p>One of these irrational behaviours relates to relativity. Independent studies have shown that when a&nbsp;test group is&nbsp;given money&nbsp;they are happy. All good and completely understandable. Rational. </p> <p> In the same study a separate test group was&nbsp;given money&nbsp;but then it was&nbsp;revealed to them that a group of their peers was&nbsp;given substantially more money. The test group reported feeling unhappy and cheated. Irrational.</p> <p>Rationally we could argue that this group should&nbsp;be happy with the fact they've received money&nbsp;which they never had before, and the fact that their peers received more than them should not decrease their happiness with receiving something, but that's not how we work. </p> <p> Ever given one of your kids a slice&nbsp;of cake which is smaller&nbsp;than the one their brother or sister got? Well, it turns out adults are no different. </p> <p> <strong>People don't want to be wealthier, they want to be wealthier than the next guy.</strong> At heart we're a competitive species and envy is widespread and a powerful force. </p> <p> When this happens at&nbsp;a national level the effects are felt both politically and economically. </p> <p> This brings me to... </p> <h3><strong>Wealth Inequality</strong></h3> <p> The average income of the richest 10% of the population is about nine times that of the poorest 10%&nbsp;across the OECD today.</p> <p>For much of the 20th century this wasn't the case. Everyone got richer together and in fact the income gap&nbsp;in developed countries narrowed progressively until around the 1970's and 1980's before the&nbsp;pattern began to reverse.</p> <p>Since the 80's the wealth gap has been growing consistently in most&nbsp;OECD countries and since the global financial crisis this inequality gap has exploded higher. Taking massive amounts of taxpayer&nbsp;money and doling&nbsp;it out to a tiny minority will do that. </p> <p> <img src="" alt="OECD Income Inequality" width="550" height="423" style="display: block; margin-left: auto; margin-right: auto;" class="aligncenter wp-image-15745" /> </p> <p> According to an&nbsp;OECD report published last year:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><em>"Since the 1980's income inequality has risen in most OECD countries. A quarter of a century ago disposable income of the top 10% of earners was on average around 7&nbsp;</em><em>times higher&nbsp;than that of bottom 10%; by 2010, it was around 9.5 times higher. Since the mid-1980's,&nbsp;average inequality in OECD countries has risen by almost 10% to just under 32 Gini points, the&nbsp;standard measure of inequality.</em> </p> <p>&nbsp;</p> <p><em>The shift was even more pronounced over</em><em>roughly the same period among the top 1% of earners,&nbsp;especially in English speaking countries. In the United States for example, the share of pre-tax income going to the richest 1% more than doubled, reaching almost 20% in 2012."</em></p> </blockquote> <p> This trend is strong and growing stronger. In the US between 1975 and 2012 statistics show around 47% of the total growth in pre-tax incomes went to the top 1%. In Canada this figure was 37% and it was over 20% in both the UK and Australia.</p> <p>The realisation by citizens&nbsp;that this inequality exists&nbsp;is exacerbated&nbsp;when they see blatant corruption allowing for and feeding the inequality. It's one thing seeing&nbsp;someone get richer than you by hard work and it's entirely something else seeing them get there via corruption.</p> <p>Remember this guy?</p> <p><img src="" alt="mf-global-jon-corzine-missing-funds" width="400" height="268" style="display: block; margin-left: auto; margin-right: auto;" class="aligncenter wp-image-15748" /> </p> <p> Corzine isn't the problem of course. Sure, he deserves a bat to the head but he's a product of a deeper problem. A system which allows for and encourages many Corzines is what Joe Sixpack is fed up with. </p> <p> The symbiotic relationship between politicians and special interest groups is surpassed only by the parasitic relationship between both of these parties and citizens.</p> <p>As example upon example of crony capitalism has been layered upon the citizenry, they've begun to realise that promises for heavier regulation and tighter controls don't work when <strong>business and politics are in a partnership to plunder.</strong></p> <p>The rise of and role of government in the free market is directly correlated with income inequality, and across the developed world we're experiencing a dramatic shift in trust. Voters across the developed world are showing signs that they've had enough. </p> <h3><strong>No More Free Enterprise</strong></h3> <p> A problem not often discussed is that even though what we have today in much of the developed world is&nbsp;free market capitalism in the same way that&nbsp;McDonald's is health food, the majority don't necessarily understand that. This distorted, heavily managed, controlled, and regulated interventionist welfare state entangled with a web of corrupt government-private sector relationships is still labelled as capitalism and that worries me. </p> <p> I spoke a few weeks ago about <a href="" target="_blank">Tesla.</a>&nbsp;Here&nbsp;we have a company which would simply not exist without special deals struck&nbsp;with the establishment. These are not some backdoor deals done far from the spotlights. They are detailed in the companies financials for all to see. It makes one wonder what the backdoor deals look like if this is what the front door deals look like.</p> <p style="text-align: center;">-------------------------------------------------------------</p> <p style="text-align: center;"><em>Why is Kyle Bass (along with 5 other world's investing giants) placing big bets on gold? </em></p> <p style="text-align: center;"><em>Find out in a <a href="">free report called 'Six Great Reasons To Own Gold'</a></em></p> <p style="text-align: center;"><span style="font-size: 13.008px; line-height: 20.0063px;">-------------------------------------------------------------</span></p> <p> The threat of a backlash against capitalism is what worries me most. True capitalism, that is. The rumblings are there and growing stronger. In the UK we watched that manifestation of true economic ignorance: Jeremy Corbyn elected to lead the labour party. This is what the public are voting for. Scary! </p> <p> What the electorate may&nbsp;get could&nbsp;be worse than what we have, but Joe and Jane Sixpack increasingly no longer care and are prepared to step into the unknown for something... anything... just not what exists now. </p> <p> There are sectors that will benefit should this accelerate and take place and I've got many&nbsp;on my watch list but&nbsp;my question for you today is this: &nbsp;</p> <p><a href=""><img src="" alt="Wow Poll 11" width="250" height="213" style="display: block; margin-left: auto; margin-right: auto;" /></a></p> <p>Leave your comment <a href="">here.<br /> </a></p> <p> Investing and protecting our capital in a world which is enjoying the most severe distortions of any period in mans recorded history means that a different approach is required. And traditional portfolio management fails miserably to accomplish this.</p> <p>And so our&nbsp;goal here is simple: protecting the majority of our wealth from the inevitable consequences of absurdity, while&nbsp;finding the most asymmetric investment opportunities for our capital. Ironically, such opportunities&nbsp;are a result of the actions which&nbsp;have landed the world in such trouble to begin with. </p> <p> - Chris </p> <p> <em>"</em><em style="font-size: 13.008px; line-height: 1.538em;">Our great democracies still tend to think that a stupid man is more likely to be honest than a clever man, and our politicians take advantage of this prejudice by pretending to be even more stupid than nature made them." —</em><span style="font-size: 13.008px; line-height: 1.538em;">&nbsp;Bertrand Russell</span></p> <p style="text-align: center;"><span style="font-size: 13.008px; line-height: 20.0063px;">==============</span></p> <p style="text-align: center;">Liked this article?&nbsp;<a href="">Don't miss our future articles and podcasts, and</a></p> <p style="text-align: center;"><a href="">get access</a>&nbsp;<a href="" style="line-height: 20.8px; font-size: 1em;">to free subscriber-only content here.</a></p> <p style="text-align: center;"><span style="font-size: 13.008px; line-height: 20.0063px;">==============</span></p> Australia Corruption Kyle Bass Kyle Bass Thu, 25 Aug 2016 09:31:12 +0000 Capitalist Exploits 570558 at Cutting Through The Crap: The Ultimate Clinton-Trump Policy Cheatsheet <p>Amid the sound and fury of the presidential campaigns, one thing that is crucially <strong>un</strong>important appears to be policies... but in case you need to actually understand the actual differences between &#39;the crook&#39; and &#39;hitler&#39; actually are, HSBC has provided a <strong>handy cheatsheet...</strong></p> <p>A list of things to utterly ignore when casting your vote...</p> <p><a href=""><img height="569" src="" width="600" /></a></p> <p><em>Source: HSBC</em></p> <p>But of course - what really matters is who the candidates are perceived to be by the mainstream media&#39;s constant propaganda.</p> <p><a href="">Here is The Onion to explain: </a><span style="text-decoration: underline;"><strong><a href="">Why People Don&#39;t Like Hillary Clinton?</a></strong></span></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Although she&rsquo;s secured the Democratic presidential nomination, many voters across all demographics are still hesitant to vote for Hillary Clinton.</strong> The Onion breaks down the reasons Clinton is having a hard time luring reluctant voters.</p> <p>&nbsp;</p> <p><strong>Iraq War</strong></p> <p>Alarge number of voters are unable to forgive Clinton&rsquo;s support for the invasion of Iraq, even though she&rsquo;s explained over and over again that 2003 was a long time ago</p> <p>&nbsp;</p> <p><strong>Ties To Big Banks</strong></p> <p>Many perceive Clinton as having a cozy relationship with the financial sector, a criticism she&rsquo;s spent millions in untraceable donations trying to fight against</p> <p>&nbsp;</p> <p><strong>Policy-Driven Campaigning</strong></p> <p>Dry, wonkish speeches irritate the public by reminding them there are a wide variety of issues they should be paying attention to</p> <p>&nbsp;</p> <p><strong>Looks</strong></p> <p>Clinton&rsquo;s image is dogged by the unrealistic aesthetic standard set by her 43 predecessors</p> <p>&nbsp;</p> <p><strong>Trustworthiness</strong></p> <p>Voters prefer a candidate whose backpedaling and flip-flopping on issues seems less calculated and strategic</p> <p>&nbsp;</p> <p><strong>Garrison Keillor</strong></p> <p>Still holding a grudge about losing that 1997 Spoken Word Grammy</p> <p>&nbsp;</p> <p><strong>Personal History</strong></p> <p>Clinton would be the first U.S. president who has had sex with a U.S. president, and that&rsquo;s weird</p> <p>&nbsp;</p> <p><strong>Oratory Skill</strong></p> <p>Suffers from unfortunate speech impediment of sounding like a capable, self-possessed woman</p> <p>&nbsp;</p> <p><strong>Statistics</strong></p> <p>Studies have shown that it is at least 35 percent more fun to dislike Clinton than it is to support her</p> <p>&nbsp;</p> <p><strong>Sincerely Wants To Be President</strong></p> <p>Always a red flag</p> </blockquote> <p><a href="">And he is The Onion to explain why <u><strong>The Rest Of Nation Should Stop Wasting Time Trying To Reach Diehard Trump Voters</strong></u></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Saying it should be very clear by now that absolutely nothing can change their position on the matter, steadfast supporters of Republican presidential nominee Donald Trump told the rest of the nation Wednesday that it really shouldn&rsquo;t bother trying to persuade them not to vote for him.</strong></p> <p>&nbsp;</p> <p>The announcement, which was issued by millions of the candidate&rsquo;s staunchest proponents across the country, emphasized that if widespread condemnations of Trump&rsquo;s temperament, denouncements of his racially charged rhetoric, and technical critiques of his sweeping immigration plan were going to sway their opinion, it would have happened already.</p> <p>&nbsp;</p> <p><strong>&ldquo;You can keep writing editorials, running ads, and arguing with us at the dinner table or online, but honestly, at this point, it won&rsquo;t make a bit of difference,&rdquo;</strong> said diehard Trump supporter Bryan Gallagher, 66, who remarked that it had been &ldquo;a complete waste of time&rdquo; when 50 top GOP foreign policy experts published an open letter earlier this month suggesting a Trump presidency would gravely endanger national security, noting that he and everyone else who currently backs Trump is &ldquo;in it for the long haul.&rdquo; &ldquo;You really have no chance of winning us over. You could bring out every living four-star general and have them list all the ways Trump would harm our country&rsquo;s well-being, and we still wouldn&rsquo;t budge.&rdquo;</p> <p>&nbsp;</p> <p><strong>&ldquo;Do you really think you&rsquo;re going to come up with some new criticism of his policies or his preparedness that will finally make us reconsider our votes?&rdquo; Gallagher continued. &ldquo;Please, you should all just save yourself the effort.&rdquo;</strong></p> <p>&nbsp;</p> <p>The loyal Trump supporters said their message was directed at everyone who has actively sought to convince them that voting for the real estate mogul is against their own interests, a group that includes current and former members of Congress, members of past Republican administrations, America&rsquo;s NATO allies, human rights advocates, the pope, and many veterans, as well as their own families, friends, and coworkers. The candidate&rsquo;s backers added that, considering how they have already gone along with everything he has said and done in the 2016 election cycle, those trying to communicate Trump&rsquo;s shortcomings to them should &ldquo;quit wasting their breath.&rdquo;</p> <p>&nbsp;</p> <p>According to members of the pro-Trump constituency, the group has grown especially exasperated when asked by others to consider the possibility of supporting a different candidate based on his or her actual political views and track record. Supporters of the billionaire tycoon were quick to point out that they were given their choice of many different candidates over a period of numerous months, and they, of their own volition, actively opted to support Trump.</p> <p>&nbsp;</p> <p>They added that the evidence that has been presented to them showing that, in fact, other candidates&rsquo; stances on the issues more closely align with their own, that many of the claims made over and over again by the New York businessman are demonstrably false, and that his financial dealings reveal he doesn&rsquo;t in any way practice what he preaches, is of no consequence to them whatsoever and never will be.</p> <p>&nbsp;</p> <p><strong>&ldquo;Look, I&rsquo;ve backed Trump since the day he announced his candidacy, I put up a Trump sign in my yard back in January, and I regularly repeat the phrase that we need to &lsquo;make America great again&rsquo;&mdash;do you honestly believe a long, serious discussion of policy is going to make me any less excited about him?&rdquo; </strong>said 58-year-old voter Vivian Hewitt of Derry, NH. &ldquo;You can put together whatever platform you think will best address the concerns of people like me, but I&rsquo;m telling you, it&rsquo;s not going to work. It hasn&rsquo;t worked for the past year, and it won&rsquo;t work between now and November.&rdquo;</p> <p>&nbsp;</p> <p>&ldquo;So give it a rest, okay?&rdquo; she added.</p> <p>&nbsp;</p> <p>Hewitt and her fellow Trump supporters went on to state that any further arguments made against their preferred candidate from here on out would simply cause them to dig their heels in even deeper.</p> <p>&nbsp;</p> <p><strong>&ldquo;Here&rsquo;s the thing: It&rsquo;s not like I just stood by him each time he&rsquo;s made one of those controversial statements that caused all the naysayers to condemn his campaign; I actually retweeted the very comments that sent everyone into a frenzy in the first place&mdash;so there&rsquo;s really no use in even trying to get through to me on this stuff,&rdquo; </strong>said 33-year-old Greg Lockwood, an Indianapolis resident who voted for the first time in this year&rsquo;s primaries. &ldquo;To be honest, the only time I&rsquo;ve really considered changing my mind about Trump was when he called for simply defunding Planned Parenthood instead of advocating a constitutional amendment banning abortion, because I didn&rsquo;t think his views were extreme enough. See? That&rsquo;s the kind of thinking that your arguments and thinkpieces are up against. They don&rsquo;t stand a chance.&rdquo;</p> <p>&nbsp;</p> <p>Added Lockwood: <u><em><strong>&ldquo;The bottom line is that, no matter what you do, on Election Day we&rsquo;re walking into that booth and we&rsquo;re voting for him. Simple as that.&rdquo;</strong></em></u></p> <p>&nbsp;</p> <p>When asked to comment on their candidate&rsquo;s broad appeal among white supremacists, the diehard group of voters quickly cut off reporters with a loud chorus of &ldquo;Trump! Trump! Trump!&rdquo;</p> </blockquote> <p>See, fair-and-balanced.</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="564" height="393" alt="" src="" /> </div> </div> </div> CRAP Demographics Donald Trump Iraq national security Nomination Real estate The Onion Thu, 25 Aug 2016 09:00:00 +0000 Tyler Durden 570501 at University of Chicago Tells Millennials to Suck It Up, "We Do Not Condone 'Safe Spaces'" <p>In a refreshing and stark contrast to other universities that have seemingly tripped over themselves to accommodate every silly request from America&#39;s pampered Millennials in their never ending quest for &quot;safe spaces,&quot; <strong>the University of Chicago has sent the incoming class of 2020 a letter making very clear that they will find no &quot;safe spaces&quot; in their intellectual journey at Chicago.&nbsp; </strong>The full letter is presented below but here are a couple of the best comments for your reading pleasure: &nbsp;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>You will find that we expect members of our community to be engaged in rigorous debate, discussion, and even disagreement.&nbsp; <strong>At times this may challenge you and even cause discomfort</strong>.</p> <p>&nbsp;</p> <p>Our commitment to academic freedom means that <strong>we do not support so-called &ldquo;trigger warnings,&rdquo; we do not cancel invited speakers because their topics might prove controversial, and we do not condone the creation of intellectual &ldquo;safe spaces&rdquo; where individuals can retreat from ideas and perspectives at odds with their own. </strong></p> </blockquote> <p><strong>Just when we thought all hope had been lost, </strong>an establishment of higher learning finally steps up to interject some rational thoughts into the public discourse surrounding freedom of expression.</p> <p>&nbsp;</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">.<a href="">@UChicago</a> does not:</p> <p>???? &quot;support so-called &#39;trigger warnings&#39;&quot;<br />???? &quot;cancel invited speakers&quot;<br />???? condone &quot;safe spaces&quot; <a href=""></a></p> <p>&mdash; Justice Don Willett (@JusticeWillett) <a href="">August 25, 2016</a></p></blockquote> <script src="//"></script><p>&nbsp;</p> <p>&nbsp;</p> <p>The letter also directs students to a note it had previously written on freedom of expression...</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 831px;" /></a></p> <p>The <strong>full letter can be reviewed in its entirety at the end of this post,</strong> but below are a couple of the gems that we particularly liked:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<strong>Education should not be intended to make people comfortable, it is meant to make them think.</strong> Universities should be expected to provide the conditions within which hard thought, and therefore strong disagreement, independent judgment, and the questioning of stubborn assumptions, can flourish in an environment of the greatest freedom.&rdquo;</p> <p>&nbsp;</p> <p>Of course, the ideas of different members of the University community will often and quite naturally conflict. <strong>But it is not the proper role of the University to attempt to shield individuals from ideas and opinions they find unwelcome, disagreeable, or even deeply offensive.</strong></p> <p>&nbsp;</p> <p>In a word, the University&rsquo;s fundamental commitment is to the principle that <strong>debate or deliberation may not be suppressed because the ideas put forth are thought by some or even by most members of the University community to be offensive, unwise, immoral, or wrong-headed.</strong></p> </blockquote> <p>For Millennials getting ready start at University of Chicago might we suggest some reading material (<a href="">here</a>) that we shared a few months back that might help you cope in the absence of &quot;safe spaces&quot; at your new home...</p> <p><img alt="Safe Space" height="437" src="" width="600" /></p> <p>No matter where you go in life, someone will be there to offend you. Maybe it&rsquo;s a joke you overheard on vacation, a spat at the office, or a difference of opinion with someone in line at the grocery store. Inevitably, someone will offend you and your values. If you cannot handle that without losing control of your emotions and reverting back to your &ldquo;safe space&rdquo; away from the harmful words of others, then you&rsquo;re best to just stay put at home. <em><strong>Remember, though: if people in the outside world scare you, people on the internet will downright terrify you. It&rsquo;s probably best to just accept these harsh realities of life and go out into the world prepared to confront them wherever they may be waiting.</strong></em></p> <p style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; display: block;">&nbsp;</p> <p><iframe frameborder="0" height="600" scrolling="no" src=";view_mode=scroll&amp;show_recommendations=true" width="100%"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1024" height="678" alt="" src="" /> </div> </div> </div> Twitter Twitter Thu, 25 Aug 2016 08:40:00 +0000 Tyler Durden 570536 at Dakota Access Pipeline Tensions Grow Increasingly Hostile As Officials Cut Off Water Supply, Arrest Dozens <p dir="ltr" lang="en">An ongoing protest by Native American members of the Standing Rock tribe, <strong>intended to halt the construction of the Dakota Access Pipeline</strong>, got a little celebrity &quot;love&quot; today in Washington D.C. as Bernie supporter, Susan Sarandon, and friends decided to swing by to show their support.&nbsp; In July, the environmental group <strong>Earthjustice filed a lawsuit </strong>(included in its entirety at the end of this post)<strong> on behalf of the Standing Rock tribe, seeking an injunction against the U.S. Army Corps of Engineers, which authorized the pipeline&#39;s construction</strong>.&nbsp; Judge James E. Boarsberg heard arguments in the case today but did not offer a ruling instead saying he would issue his opinion by September 9th with an appeal hearing set for September 14th.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">.<a href="">@ShaileneWoodley</a> <a href="">@RileyKeough</a> <a href="">@SusanSarandon</a> <a href="">@JoshFoxFilm</a> in Washington DC to protest the <a href="">#DakotaAccessPipeline</a> <a href=""></a></p> <p>&mdash; Shailene Woodley (@PlanetShailene) <a href="">August 24, 2016</a></p></blockquote> <script src="//"></script><p dir="ltr" lang="en">&nbsp;</p> <p dir="ltr" lang="en">For those that haven&#39;t followed the situation, the <strong>Dakota Access Pipeline is an 1,100 mile, 30-inch diameter pipeline intended to connect oil producers in the Bakken area of North Dakota to refining capacity and other transportation infrastructure in Patoka, Illinois.</strong>&nbsp; The pipeline will initially carry 470,000 barrels of oil per day with capacity as high as 570,000 barrels (roughly 50% of daily Bakken production).&nbsp; The pipeline is expected to cost $3.8 billion and was expected to be completed by the end of 2016 until recent protests halted construction. &nbsp; &nbsp;&nbsp;</p> <p><img alt="Dakota Pipeline" height="495" src="" width="600" /></p> <p>&nbsp;</p> <p>Although the<strong> pipeline primarily runs along private land</strong>, <strong>federal approval was required for crossings at various bodies of water</strong>, like the Missouri River.&nbsp; The lawsuit, filed on behalf of the Standing Rock tribe, alleges that the U.S. Army Corps of Engineers failed to conduct the proper &quot;cultural&quot; reviews before approving construction.&nbsp; The complaint further alleges that running the pipeline upstream of tribal land threatens the water supply of the tribe.&nbsp; According to <a href="">RT</a>:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The tribes&#39; lawsuit filed last month in federal court in Washington <strong>challenges the U.S. Army Corps of Engineers&#39; decision to grant permits at more than 200 water crossings in four states for the pipeline</strong>. The tribe argues the <strong>pipeline that would be placed less than a mile upstream of the reservation could impact drinking water for the more than 8,000 tribal members </strong>and the millions who rely on it further downstream. The lawsuit, <strong>filed on behalf of the tribe by environmental group Earthjustice</strong>, said the project violates several federal laws, including the National Historic Preservation Act. The tribe worries the project will disturb ancient sacred sites outside of the 2.3-million acre reservation.</p> </blockquote> <p>Meanwhile, per the <a href="">New York Times</a>, the<strong> Army Corps of Engineers rejected claims made by the Standing Rock tribe </strong>saying it consulted extensively with tribes, including the Standing Rock Sioux, and that <strong>the tribe failed to describe specific cultural sites that would be damaged by the pipeline.&nbsp;&nbsp;</strong></p> <p>The battle culminated today in a hearing at the U.S. District Court in Washington D.C. with well organized protests drawing some celebrity attention.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Stop the <a href="">#DakotaAccessPipeline</a></p> <p>Join <a href="">@joshfoxfilm</a> <a href="">@shailenewoodley</a> <a href="">@LeeCamp</a> <a href="">@SusanSarandon</a> <a href="">@janekleeb</a> in DC today! <a href=""></a></p> <p>&mdash; LET GO AND LOVE DOC (@LETGOANDLOVEdoc) <a href="">August 24, 2016</a></p></blockquote> <script src="//"></script><p dir="ltr" lang="en">&nbsp;</p> <p dir="ltr" lang="en">Protesting <a href="">#DakotaAccessPipeline</a>. The Native American way <a href="">#NODAPL</a> <a href="">#standingrock</a> <a href=""></a></p> <blockquote class="twitter-tweet"><p>&mdash; Alexey Yaroshevsky (@Yaro_RT) <a href="">August 24, 2016</a></p></blockquote> <script src="//"></script><p>&nbsp;</p> <p><strong>Members of the Standing Rock tribe have been protesting the construction of the Dakota Access Pipeline now for months in North Dakota.</strong>&nbsp; Protesters have setup a camp along the Missouri River on land belonging to the US Army Corps of Engineers, despite not having the proper permits to do so.&nbsp; The number of people at the camp has steadily grown over the past several weeks and have been estimated to be as high as 5,000 at various points in time.&nbsp;</p> <p><img alt="DAP Protesters" height="345" src="" width="600" /></p> <p>&nbsp;</p> <p><strong>Protests at the site have grown more contentious in recent days with protesters trespassing on private land to halt construction operations and taking to horseback to taunt police officers.&nbsp; </strong>&quot;Safety&quot; concerns at the site forced the Morton County Sheriff&#39;s department to halt construction last week as <strong>some protesters were found to be carrying &quot;pipe bombs and guns.&quot;</strong>&nbsp; According to <a href="">NPR:</a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;Construction at the site is now halted. Law enforcement said <strong>some are carrying pipe bombs and guns. Twenty-eight protesters were arrested over the last week, including Standing Rock Chairman Dave Archambault. He&#39;s urging protesters to comply with the law.</strong></p> <p>&nbsp;</p> <p>When Sheriff Kirschmeier was speaking about &quot;safety concerns&quot; Thursday, he said, &quot;<strong>There have been some instances where things have become unlawful. ... Things have been taken a little bit further every day.</strong>&quot;</p> </blockquote> <p>The escalation of the protests<span style="text-decoration: underline;"><strong> prompted police to remove water tanks and trailers that had been supplied by the North Dakota Department of Health</strong></span> as Homeland Secuity Division Director, Greg Wilz, told the <a href="">Birmarck Tribune</a> that &ldquo;based on the scenario down there, we don&rsquo;t believe that equipment is secure.&rdquo;&nbsp;</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">We will continue to defend the land, water, &amp; people from the pollution of Mother Earth. Stop <a href="">#DakotaAccessPipeline</a> <a href=""></a></p> <p>&mdash; Urban Native Era (@UrbanNativeEra) <a href="">August 13, 2016</a></p></blockquote> <script src="//"></script><p>&nbsp;</p> <p><iframe frameborder="0" height="321" scrolling="no" src="" width="480"></iframe></p> <p>&nbsp;</p> <p>With environmental interests recruiting celebrities to help draw attention to the cause we&#39;re pretty sure we&#39;ll be hearing more about the Dakota Access Pipeline over the coming weeks.</p> <p><iframe frameborder="0" height="600" scrolling="no" src=";view_mode=scroll&amp;show_recommendations=true" width="100%"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="800" height="538" alt="" src="" /> </div> </div> </div> Twitter Twitter Washington D.C. Thu, 25 Aug 2016 08:15:00 +0000 Tyler Durden 570528 at Government Study Admits Fed Policies Have Deepened Downturn For Many <p><a href=""><em>Via The Daily Bell,</em></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Wealthy Have Nearly Healed From Recession; the Poor Haven&rsquo;t&nbsp; </strong>&hellip;</p> <p>&nbsp;</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 395px;" /></a></p> <p>&nbsp;</p> <p>The Great Recession and the subsequent recovery from it have deepened the wedge between the very wealthy and everyone else in America, plunging the poor deeper into debt and wiping out two-fifths of the wealth held by families in the heart of the middle class. The wealthiest Americans, meanwhile, appear close to regaining all their losses over the same period, according to an analysis released last week by the Congressional Budget Office. &ndash; Washington Post</p> </blockquote> <p>This analysis helps prove a point we&rsquo;ve been making for years: <u><em><strong>Fed stimulation provided by too-low interest rates does NOT stimulate industry only finance and speculation.</strong></em></u></p> <p><strong>The Congressional Report doesn&rsquo;t seem to mention central banking, so in this article we will rectify the omission.</strong>&nbsp;The entire justification for central banking is that it helps policymakers produce prosperity. But it doesn&rsquo;t.</p> <p>We don&rsquo;t need a government analysis to confirm this but it&rsquo;s useful to have because it illustrates once more the truth of what&rsquo;s occurring in terms of economic manipulation.&nbsp;The entire apparatus of monetary leadership, and its influence on the marketplace itself, does not deliver what it is supposed to.</p> <p><strong>The idea is that the Fed provides additional liquidity as necessary. But this is a form of price-fixing</strong>.&nbsp;In a&nbsp; normal economy where the government itself was not involved in &ldquo;adjusting&uml; the value and volume of currency, the value would be provided by the market itself.</p> <p>This is the way it has traditionally worked throughout history. <strong>The last century has been one enormous experiment. But the consequences are obvious.</strong></p> <p>Say an economy utilizes gold as money. When too much gold circulated in the marketplace, the value relative to what could be purchased would likely decline. As the value declined, less gold would be produced and circulated. Mines would close, etc.</p> <p>When less gold was produced, demand would build. The competitive marketplace itself would define the value of &ldquo;money&rdquo; and thus the contraction or&nbsp;expansion of money stock.</p> <p>This does not seem to be a complex point. It is generally admitted that the only way to set a valid price is to allow the market itself to produce the value.</p> <p>But somehow, not when it comes to money.</p> <p>Then it seems to be universally acknowledge by power brokers in the US and abroad that a monopoly facility (a central bank) is necessary to adjust the price.</p> <p>It makes no sense. And furthermore it is an example of what we call an elite dominant social theme.</p> <p><strong>It is paradigm circulated throughout the world that is so prevalent and fundamental that the mainstream media simply doesn&rsquo;t question it.</strong></p> <p>Global warming is such a theme (<a href="">here</a>). Vaccines are such a theme (<a href="">here</a>). These themes and many others constitute the propaganda launched by governments &ndash; and shadowy power brokers &ndash; to reinforce and justify authoritarianism.</p> <p><em><strong>Every dominant social theme has two parts. The first part is the problem. Fear is to be raised and deepened whenever possible. That&rsquo;s why so many elite memes focus on scarcity. The world is running out of water, food, air, etc.</strong></em></p> <p><em><strong>The solution is always to be found in government &ndash; the bigger the better. The idea is to justify and advance global government (via the UN) whenever possible.</strong></em></p> <p>This is one reason that we are suspicious of the &ldquo;nuclear weapons&rdquo; narrative that we have been concentrating on of late. It fits perfectly into the fear-based elite paradigm. Nuclear weapons exist and can destroy the world. Only government can stop their spread and usage.</p> <p><u><strong>The same paradigm can be spotted when it comes to central banking. The world is ever in danger of recessions and depressions. And only monopoly central banking &ndash; the control of the money supply by an elite, technocracy &ndash; can save us from poverty.</strong></u></p> <p>Questions do arise of course. But always they have to do with the &ldquo;job&rdquo; a given central bank is doing. They are policy questions pertaining to the competence of a monopoly money-printing facility.</p> <p>But the basic functionality is almost never questioned in the Kabuki ritual that passes for establishment dialogue.</p> <p>But it should be. Unfortunately, as with so many articles in the mainstream media and&nbsp;Washington Post in particular, when something substantive is presented, the analysis is lacking.</p> <p>The article presents the information but then leaves it lying there like a dead thing. No fundamental explanation is offered.</p> <p>Here:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The analysis shows the wealthiest 10 percent of Americans now hold three-quarters of the nation&rsquo;s wealth, up from two-thirds in 1989, and a three percentage-point increase from the start of the recession.</p> <p>&nbsp;</p> <p>Most Americans found themselves with less wealth in 2013 than Americans of a similar age had in 1989; the only age group doing better than its counterparts from a quarter-century ago was senior citizens.</p> <p>&nbsp;</p> <p>The report was commissioned at the request of Sen. Bernie Sanders of Vermont, who made inequality a central theme of his run for the Democratic presidential nomination this year.</p> <p>&nbsp;</p> <p>In a statement, he said the analysis &ldquo;makes clear that since the 1980s there has been an enormous transfer of wealth from the middle class and the poor to the wealthiest people in this country.&rdquo;</p> </blockquote> <p>Of course Sanders has the answer! He doubtless wants MORE government interference so that the problem government has created with its monetary price fixes can be cured by yet more meddling.</p> <p><strong>When central banks provide more money to the economy than necessary (and there is no way to prove how much IS necessary), the extra cash flows into the hands of the wealthy closest to the central bank money spigot.</strong></p> <p>Often this money is &ldquo;invested&rdquo; in securities exchanges and more money is made. This money doesn&rsquo;t necessarily translate into industrial stimulation.</p> <p><strong>The wealthy make more money from central bank processes. But workers are left out of the process.</strong></p> <p>This is a simple and clear result of monopoly money printing. Price fixing never provides us with expected results. It always damages certain groups at the expense of others.</p> <p><u><strong>Over time, monopoly central banking has increasingly impoverished the people it supposedly seeks to help.</strong></u></p> <p>And gradually in this Internet era, workers are realizing it. The Fed, for instance, just launched a Facebook page (<a href="">here</a>). It is already bombarded with negative, nasty comments.</p> <p><strong>People, more and more&nbsp;of them, do understand the impossibility of improving the economy by giving a handful of people the power to expand or contract the money stock at will.</strong></p> <p>In simplest terms it is a ridiculous idea. It can&rsquo;t work. It doesn&rsquo;t work. And this analysis is further proof.</p> <p><strong>We&rsquo;ve been reporting on the gradual decline of central bank &ndash; and Federal Reserve &ndash; credibility for about a decade now</strong> here at DB. Nothing that we have seen leads us to conclude that central banking is held in higher esteem than before.</p> <p>In other words, the trend is down. <strong>And sooner or later the current system will not have the necessary popular support to survive.</strong></p> <p>While this will be a good development for the prosperity of many, we also know the corollary &nbsp;difficulty that will emerge. At this point those who stand behind central banking have long-ago concluded the system is not viable.</p> <p>But that doesn&rsquo;t mean they will cooperate with removing it. What they will inevitably suggest is that because the current system doesn&rsquo;t work, a larger, global system is necessary.</p> <p>The groundwork is already being laid for this global&nbsp; system. Just yesterday we pointed out that both the ruble and the yuan were being positioned to compete with the dollar. And yet the positioning elements &ndash; the IMF and World Bank &ndash; were being provided by the West!</p> <p>The upcoming currency crisis is being manipulated by Western programmatic elements. The solution is to be some sort of increasingly globalized (world) government.</p> <p>And as this conversation proceeds in the mainstream media, you will find little or no analyses of the price-fixing that inevitably accompanies monopoly central banking at any level.</p> <p><u><strong>It will be proposed that global price-fixing will somehow ameliorate the problems coming from regional price fixing of money.</strong></u></p> <p><strong>Conclusion: </strong><em><u>But it won&rsquo;t. The only path to prosperity is to privatize money and let the market itself calculate its value and volume. This should be done as soon as possible. The disease of central banking should be cured by the application of free-market solutions. We eagerly await this outcome and confidently expect its application within the better part of, hm-mm &hellip; a thousand years?</u></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="908" height="598" alt="" src="" /> </div> </div> </div> Bernie Sanders Central Banks Congressional Budget Office ETC Federal Reserve Global Warming Money Supply Nomination Recession recovery World Bank Yuan Thu, 25 Aug 2016 07:30:00 +0000 Tyler Durden 570498 at Is Portugal The Next "Shoe To Drop" In Europe? <p><strong>The fate of Portugal rests in the hands of DBRS, the last remaining credit rating agency assigning an investment grade rating to its sovereign debt</strong> (Fitch, Moody&#39;s and S&amp;P have all lowered the country&#39;s debt rating to junk).&nbsp; Due to a requirement that participant countries have an IG rating from at least 1 rating agency, the <strong>DBRS rating is literally the only thing allowing Portugal&#39;s bonds to remain eligible for the European Central Bank&#39;s 1.7 trillion euro bond buying program.</strong>&nbsp; DBRS is set to update its Portugal rating on October 21 and investors in Portugal sovereign risk are starting to get a little nervous.&nbsp;</p> <p><a href=""><img alt="Portugal 10 Year" height="321" src="" width="600" /></a></p> <p>&nbsp;</p> <p>Until last week there seemed to be little worry about a potential downgrade among investors.&nbsp; That changed when the release of 2Q 2016 GDP showed minimal growth.&nbsp; Fergus McCormick, head of sovereign ratings at DBRS, recently noted in an interview with <a href="">Reuters </a>that although Portugal&#39;s debt carries a &quot;stable&quot; rating that the situation appears to be deteriorating.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;<strong>Friday&#39;s Q2 GDP release (which showed growth at just 0.2 percent) raised our concerns about growth prospects, which appear to be slowing into the third quarter,</strong>&quot; he told Reuters in an interview.</p> <p>&nbsp;</p> <p>&quot;Therefore, the outlook remains stable, <strong>but pressures appear to be mounting from these various fronts,</strong>&quot; he added, also citing European Commission demands that an unwilling Lisbon implement more spending cuts.</p> <p>&nbsp;</p> <p><strong>DBRS&#39;s October review will come just a week after Portugal is scheduled to provide the Commission with a list of those new cuts to get its budget deficit back under 3 percent of GDP.</strong></p> <p>&nbsp;</p> <p>Uncertainties over the make-up of those measures and their impact on the delicate political balance were a concern McCormick said, as was the possibility that <strong>more taxpayer money may be needed to prop up banks including Caixa Geral de Depositos and BCP</strong>.</p> <p>&nbsp;</p> <p><strong>&quot;Will the far-left parties support these two initiatives? This is unclear.&quot;</strong></p> </blockquote> <p>The socialist minority government that came to power in November 2015 has not helped the situation by <strong>raising the minimum wage</strong>,<strong> increasing the number of public holidays and reversing other key reforms, that will make it more difficult for the country to meet its EU fiscal targets.&nbsp; </strong>To be sure, the collapse in oil prices have indirectly taken a toll on Portugal as well with exports to it&#39;s 4th largest trading partner, Angola, falling by 42% in the first half of 2016.&nbsp;</p> <p>As we said yesterday in a post entitled &quot;<a href="">Something &quot;Unexpected&quot; Happened When Seattle Raised The Minimum Wage</a>&quot;:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Seemingly no amount of empirical evidence can convince progressives that raising minimum wages to artificially elevated levels is a bad idea</strong>.&nbsp; Somehow the basic idea that raising the cost of a good ultimately results in lower consumption of that good just doesn&#39;t compute.</p> <p>&nbsp;</p> <p>Though it does seem odd that progressives in states like California lean heavily on higher taxes as a way to curb, for example, fuel consumption.&nbsp; Could it be that the left actually does understand the basic economics of the minimum wage debate but don&#39;t find the math behind it to be particularly &quot;politically expedient&quot; in certain instances?</p> </blockquote> <p>Seems that politicians will stick to their narratives even when faced with the collapse of their country&#39;s economic well-being.&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="453" height="302" alt="" src="" /> </div> </div> </div> Bond Budget Deficit European Central Bank Fitch Investment Grade Portugal Rating Agency ratings Reuters Sovereign Debt Sovereign Risk Sovereign Risk Thu, 25 Aug 2016 06:45:00 +0000 Tyler Durden 570512 at Four More Mega-Banks Join The Anti-Dollar Alliance <p><a href=""><em>Submitted by Simon Black via,</em></a></p> <p><u><strong>That was fast.</strong></u></p> <p>Yesterday I told you how <a href="">a consortium of 15 Japanese banks had just signed up</a> to implement new financial technology to clear and settle international financial transactions.</p> <p>This is a huge step.</p> <p>Right now, most international financial transactions must pass through the US banking system&rsquo;s network of correspondent accounts.</p> <p><strong>This gives the US government an incredible amount of power&hellip; power they haven&rsquo;t been shy about using over the last several years.</strong></p> <p>2014 was one of the first major watershed moments when the Obama administration fined French bank BNP Paribas $9 billion for doing business with countries that the US doesn&rsquo;t like&ndash; namely Cuba and Iran.</p> <p>It didn&rsquo;t matter that this French bank wasn&rsquo;t violating any French laws.</p> <p>Nor did it matter that only months later the President of the United States inked a sweetheart nuclear deal with Iran and flew down to Cuba to attend a baseball game with his new BFFs.</p> <p>BNP had to pay up. A French bank paid $9 billion because they violated US law.</p> <p><strong>And if they didn&rsquo;t pay, the US government threatened to kick them out of the US banking system.</strong></p> <p>$9 billion hurt. But being kicked out of the US banking system would have been totally crippling.</p> <p>Big international banks in particular cannot function if they don&rsquo;t have access to the US banking system.</p> <p>As long as the US dollar remains the world&rsquo;s dominant reserve currency, major banks must able to clear and settle US dollar transactions if they expect to remain in business.</p> <p><strong>This means having access to the US banking system&hellip; the gatekeeper of the US dollar.</strong></p> <p>But having watched BNP Paribas get blackmailed into paying an absurd $9 billion fine to the US government, the rest of the world&rsquo;s mega-banks knew instantly that their heads could be next ones on the chopping block.</p> <p>So they started working on contingency plans.</p> <p>Blockchain technology provided an elegant solution.</p> <p>Instead of passing funds through the US banking system&rsquo;s costly and inefficient network of correspondent accounts, blockchain technology provides an easy way for banks to send payments directly to one another.</p> <p>I cannot understate how important this technology is.</p> <p><strong>Blockchain may very well be what neutralizes the US government&rsquo;s domination of the global financial system.</strong></p> <p>And while there&rsquo;s been a lot of momentum in this direction (hence yesterday&rsquo;s letter to you), even I&rsquo;m surprised at how fast it&rsquo;s moving.</p> <p><u><strong>Today, four of the world&rsquo;s largest banks announced a brand new joint venture to create a new financial settlement protocol built on blockchain technology.</strong></u></p> <p>Deutsche Bank from Germany, UBS from Switzerland, Santander from Spain, and Bank of New York Mellon have joined together to<strong> launch what they&rsquo;re naming the very un-sexy &ldquo;utility settlement coin&rdquo;.</strong></p> <p>Like Ripple, Setl, Monetas, and several other competing technologies, Utility Settlement Coin has the potential to end the reliance on the US banking system for cross-border payments and financial transactions.</p> <p>Banks will be able to send payments to one another directly without having to transit through the Wall Street financial toll plaza.</p> <p><em>(Global consulting firm Oliver Wyman estimates that the cost of clearing and settling international financial transactions at up to $80 billion annually.)</em></p> <p><strong>This has enormous implications, especially for US banks.</strong></p> <p><strong>The Federal Reserve, for example, has already warned that financial technology could pose stability risks to the US financial system.</strong></p> <p>And they&rsquo;re right.</p> <p>If foreign banks are able to transact directly with one another without having to go through the US banking system, then why would they need to park trillions of dollars in the United States?</p> <p>They wouldn&rsquo;t.</p> <p>Adoption of this technology could cause a gigantic vacuum of deposits out of the US banking system.</p> <p>US banks would take a big hit. And the US government would have far fewer foreign buyers to sell its ever-expanding piles of debt.</p> <p>Make no mistake, the adoption of this technology is a game-changing development with far-reaching implications. And it&rsquo;s happening very quickly.</p> <p><u><strong>If these mega-banks can hit their milestones, they&rsquo;ll launch commercially in eighteen months.</strong></u></p> <p>Mark it on your calendar&ndash; that may be the end of peak US financial dominance.</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="260" height="158" alt="" src="" /> </div> </div> </div> Bank of New York Deutsche Bank Federal Reserve Germany Iran Obama Administration Reserve Currency Switzerland Thu, 25 Aug 2016 06:00:00 +0000 Tyler Durden 570548 at Most Millennials Have Less Than $1,000 In Savings, Live Paycheck-to-Paycheck <p><strong>The majority of millennials are living paycheck to paycheck.</strong></p> <p>A recent survey of millennials by&nbsp;<a href=""></a>&nbsp;found that <strong>51.8% of those aged 18-34 have less than $1,000 held between bank accounts and cash savings.</strong></p> <p>As Visual Capitalist&#39;s Jeff Desjardins notes, this echoes previous data we&rsquo;ve seen &ndash; not just on millennials, but Americans in general. For example, we know that&nbsp;<strong><a href="">14% of Americans have &ldquo;negative&rdquo; wealth</a>. </strong>We also know that&nbsp;<a href="">62% of Americans</a>&nbsp;don&rsquo;t have emergency savings that could cover a $1,000 hospital visit or a $500 car repair.</p> <p>Taking that into consideration, let&rsquo;s dive deeper into this more recent millennial data...</p> <div style="clear:both"><a href=""><img src="" style="border-width: 0px; border-style: solid; height: 1093px; width: 600px;" /></a></div> <div><em>Courtesy of: <a href="">Visual Capitalist</a></em></div> <p>&nbsp;</p> <h2><u>YOUNGER VS. OLDER MILLENNIALS</u></h2> <p>The broad survey data can be further divided into &ldquo;younger&rdquo; and &ldquo;older&rdquo; millennial segments: those aged 18-24, vs. those between 25-34.</p> <p>Based on the survey question, an intuitive expectation would be that <strong>younger millennials are much more likely to have less than $1,000 in savings.</strong> After all, many of the people in this group would still be in school, and many are struggling with<a href="">student debt</a>.</p> <p>However, the difference is far less than one may expect. While it is true that <strong>57.6% of the younger demographic has less than $1,000 in savings, </strong>the older group is not much better off with almost half (47.1%) of them being in the same boat. This shows that many millennials in their late 20s and early 30s are still not able to generate substantial savings.</p> <h2><u>MALE VS. FEMALE MILLENNIALS</u></h2> <p>There is also a significant divide between male and female millennials here, with<strong> 56.7% of females having less than $1,000 in savings.</strong> Compare this number to the male percentage of 46.5%, and it is clear there is a substantial divide between genders.</p> <p>Lastly, males are also more likely to have a substantial amount stored away in their bank account. According to the survey, <strong>21.5% of males have more than $20,000 of savings, while only 11.9% females can say the same.</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="600" height="80" alt="" src="" /> </div> </div> </div> Thu, 25 Aug 2016 03:04:00 +0000 Tyler Durden 570538 at