en Our National Madness <p><a href=""><em>Authored by Charles Hugh Smith vis OfTwoMinds blog,</em></a></p> <p><em>Fakery and trickery are not solutions; they are a form of<strong> self-delusional madness </strong>that destroys the nation&#39;s ability to<strong> face reality </strong>squarely and choose real solutions, no matter how painful the choice and path might be. </em></p> <p><em><img align="middle" border="0" class="wide" src="" /></em></p> <p><strong>The nation has lost its common sense, its soul and its sanity.</strong> Can we summarize the source of this remarkably pervasive madness?</p> <p><strong>Our efforts are now focused not on solving core problems but on <em>covering up core problems</em></strong>, as if covering up problems is a substitute for solving them. Down this path lies madness, for this substitution of false narratives for reality erodes our ability to distinguish not just between reality and fantasy but our ability to distinguish between moral rights and wrongs.</p> <p><strong>The efforts of those in positions of power are now focused on obscuring the truth, marginalizing critics, blaming malevolent external forces, cloaking self-interest with virtue signaling and staking claims to victimhood.</strong> These are the five dynamics that are powering the nation&#39;s descent into madness and dysfunction.</p> <p><strong>Consider Harvey Weinstein.</strong> Evidence is now emerging that Mr. Weinstein and his army of toadies, bullies, thugs, et al. put enormous effort and resources into obscuring the truth, marginalizing critics, and cloaking self-interest with virtue signaling. Next up for Mr. Weinstein&#39;s team of apologists: blame the Russians (or an equivalently malevolent Other), and claim to be a victim of all those testifying against him.</p> <p><strong>This is the model for everyone in positions of power.</strong> The only variation is which of the five will be spewed as a first line of defense, and which will be held in reserve for the last-ditch defense against the truth becoming public.</p> <p><strong>I&#39;m sorry if this is a shock, but the economic &quot;recovery&quot; is nothing but smoke and mirrors designed to obscure the pillage of the nation&#39;s wealth and income by state-protected cartels.</strong> The central bank can&#39;t actually fix what&#39;s broken in our economy, but it can manually push the needle of the stock market higher.</p> <p><strong>So rather than actually fix what&#39;s broken, the &quot;solution&quot; is to make the stock market the primary measure of &quot;prosperity.&quot;</strong> In effect, the stagnation of <em>real prosperity</em> is a problem that would require profound (and painful to those gorging at the feeding trough) changes in the status quo; so the solution is to label the stock market &quot;the measure of prosperity&quot; and then shove it higher.</p> <p><strong>This substitution of trickery for reality solves nothing.</strong> It is the exact equivalent of the student who didn&#39;t study and who learned nothing erasing his F grade and forging an A in its place. Nothing has actually changed in terms of the student&#39;s knowledge or skillset, but he has fooled the authorities focusing on superficialities: incompetent, self-serving administrators who then tout the student&#39;s high grade as evidence of their own success, the media which mindlessly accepts the fake grade as evidence that all is peachy-keen in the school district, and so on down the line.</p> <p>If this happens often enough, the student actually starts believing he can get away with trickery as a solution for all problems: just BS your way through any challenge, and if that fails, then marginalize one&#39;s critics, blame malevolent external forces, furiously virtue-signal, and if all else fails, stake a claim to victimhood.</p> <p>In other words, the student loses touch with reality and is lost. <strong>The USA has lost touch with reality, for its leadership has embraced the notion that trickery and fakery that covers up problems <em>is a substitute for solving problems</em></strong>--and if this fails to convince an increasingly jaded and cynical public, then body-slam the public with the other four tactics: marginalize critics, blame malevolent external forces, cloak self-interest with virtue signaling and stake claims to victimhood.</p> <p><strong>Unfortunately for our nation, <em>madness is repeating what&#39;s failed and thinking it will work next time.</em></strong> Trickery, maligning critics, virtue signaling, blaming outside forces and claiming victimhood no longer have the desired effect on all but the most delusional (or self-serving) supporters of our profoundly corrupt leadership.</p> <p><strong>Actions have consequences.</strong> Fakery and trickery are not solutions; they are a form of self-delusional madness that destroys the nation&#39;s ability to face reality squarely and choose real solutions, no matter how painful the choice and path might be.</p> <p><img align="middle" border="0" class="wide" src="" /></p> <p>*&nbsp; *&nbsp; *</p> <p><em>If you found value in this content, please join me in seeking solutions by <a href="" target="resource">becoming a $1/month patron of my work via</a>. Check out both of my new books, <a href=";camp=1789&amp;creative=9325&amp;creativeASIN=B01MSP2SXM&amp;linkCode=as2&amp;tag=charleshughsm-20&amp;linkId=e45dbb20ba66e69c33a3a26772391278" target="resource">Inequality and the Collapse of Privilege</a> ($3.95 Kindle, $8.95 print) and <a href=";camp=1789&amp;creative=9325&amp;creativeASIN=B01ELXQZGE&amp;linkCode=as2&amp;tag=charleshughsm-20&amp;linkId=33DAOPEVGBNGBS37" target="resource">Why Our Status Quo Failed and Is Beyond Reform</a> ($3.95 Kindle, $8.95 print, $5.95 <a href=";camp=1789&amp;creative=9325&amp;creativeASIN=B01M7YCLI2&amp;linkCode=as2&amp;tag=charleshughsm-20&amp;linkId=60a5ab448cf91113c0df9df97732358e" target="_blank"> audiobook</a>) For more, please visit the <a href="" target="resource">OTM essentials website</a>.</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="385" height="169" alt="" src="" /> </div> </div> </div> Artificial intelligence De Educational psychology Madness Metaphysics Mind Neuropsychological assessment Philosophy Problem solving Reality recovery Thought Truth Will Tue, 21 Nov 2017 13:55:06 +0000 Tyler Durden 607653 at Tencent Overtakes Facebook As Hong Kong Stocks Flash-Smash Overnight <p><strong>Hang Seng futures exploded over 5% higher as after hours trading began last night,</strong> then crashed back to unchanged as the underlying cash index hit its highest since Nov 2007 on the heels of a surge to new record highs for <strong>Chinese tech giant Tencent - which is now larger than Facebook by market cap</strong>.</p> <p>Contracts for November delivery rose to 31,341 at 5:15pm for a 5.1% premium over the underlying gauge...</p> <p><a href=""><img height="316" src="" width="600" /></a></p> <p><strong>Hong Kong&rsquo;s benchmark equity measure advanced 1.9% on Tuesday to its highest close since November 2007</strong>,<a href=""> as WSJ reports,</a> one day after its market capitalization surpassed $500 billion, the company behind messaging app WeChat rallied by another 2.4% on Tuesday, lifting its market value to $523 billion.</p> <p><strong>If Tencent were in the S&amp;P 500, it would be the fifth most valuable company by market value. </strong></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 316px;" /></a></p> <p><strong>It would surpass Facebook at $519 billion</strong> as of their closing prices Monday according to FactSet.</p> <p><a href=""><img alt="" src="" style="width: 325px; height: 426px;" /></a></p> <p><strong>Tencent,&nbsp;<a href="">the world&rsquo;s largest videogame publisher by revenue</a>, is best known in China for its WeChat and QQ messaging and mobile-payment apps, which are installed on almost every PC and smartphone there. </strong>The company has lifted its international profile too, with several big deals in recent years, including acquisitions of the game developer Epic Games Inc. and a minority stake in videogame company&nbsp;<a href="">Activision Blizzard.</a></p> <p>It recently&nbsp;<a href="">purchased a 12% stake</a>&nbsp;in the Los Angeles social-media company&nbsp;&nbsp;<a href="">Snap</a>, becoming one of its largest shareholders, Snap revealed in a filing earlier this month.</p> <p><strong>While little known outside of the U.S., Tencent along with Alibaba and search giant Baidu are China&rsquo;s three big Internet companies.</strong> They have diversified beyond their core businesses in recent years, placing big bets on online video-streaming services and other entertainment plays.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;Tencent is an ecosystem, like Google or Apple,&rdquo; </strong>said Muzhi Li, a Hong Kong-based analyst at Arete Research.</p> <p>&nbsp;</p> <p><strong>&ldquo;It has many assets that have not monetized, like ads, payment and content, so investors have big hopes for the stock.&rdquo;</strong></p> </blockquote> <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="960" height="506" alt="" src="" /> </div> </div> </div> After Hours Alibaba Group Apple Baidu Business China Computing Economy of China Google Hang Seng 40 Hong Kong Instant messaging Instant messaging clients Ma Huateng S&P 500 smartphone Software Technology Tencent Video game publishers WeChat WeChat red envelope Tue, 21 Nov 2017 13:29:50 +0000 Tyler Durden 607655 at Journalist Sara Carter Slams DOJ Attempt To Discredit FBI Informant And Stonewall Uranium One Investigation <p><em>Submitted by <a href=""></a></em></p> <p>Several weeks ago a bombshell report by John Solomon and Alison Spann of&nbsp;<em><a href="" rel="noopener noreferrer" target="_blank">The Hill</a></em>&nbsp;revealed that an undercover FBI informant embedded deep within the Russian nuclear industry had uncovered evidence as early as the fall of 2009 of a massive&nbsp;plot by Russia to corner the American Uranium market. Evidence of the scheme was in the hands of the FBI an entire year before the Obama administration approved the sale of Uranium One to Russia&rsquo;s state-owned Energy giant, Rosatom &ndash; which has since <strong>been&nbsp;exporting &lsquo;yellowcake&rsquo; uranium to Canada, Europe and elsewhere&nbsp;<a href="" rel="noopener noreferrer" target="_blank">via a Kentuky&nbsp;trucking firm</a>.</strong></p> <p><a href=""><img height="135" src="" style="float: right; margin-left: 10px; margin-right: 10px;" width="225" /></a>Based on what the FBI knew &ndash; including evidence which purportedly includes a video of Russians preparing&nbsp;<em><a href="" rel="noopener noreferrer" target="_blank">briefcases of bribe money</a></em>&nbsp;&ndash;&nbsp;<strong>the deal never should have gone through. </strong>Moreover, both Robert Mueller and current deputy Attorney General Rod Rosenstein were directly involved &ndash; and current Attorney General Jeff Sessions and other Justice Department officials appear to be covering for them.</p> <p><u><strong>Mueller&rsquo;s FBI knew&hellip;</strong></u></p> <p>Key among the troubling revelations from&nbsp;The Hill&nbsp;is&nbsp;the undercover informant&rsquo;s claim that&nbsp;<strong>Obama&rsquo;s FBI, headed at the time by director&nbsp;<a href="">Robert Mueller</a>,&nbsp;knew that &ldquo;Russian nuclear officials had routed millions of dollars to the U.S. designed to benefit former President&nbsp;Bill Clinton&rsquo;s charitable foundation during the time Secretary of State&nbsp;Hillary Clinton&nbsp;served on a government body&nbsp;that provided a favorable decision to Moscow</strong>&rdquo;&nbsp;&ndash; a deal which would eventually grant the Kremlin control over&nbsp;<strong>20 percent of America&rsquo;s uranium supply</strong>,&nbsp;as detailed by author Peter Schweitzer&rsquo;s book&nbsp;<a href="" rel="noopener noreferrer" target="_blank">Clinton Cash</a>&nbsp;and the&nbsp;<a href="" rel="noopener noreferrer" target="_blank">New York Times</a>&nbsp;in 2015.</p> <p>The FBI mole&nbsp;also gathered extensive evidence that&nbsp;<strong>Moscow had compromised an American uranium trucking firm, Transport Logistics International (TLI) in violation of the Foreign Corrupt Practices Act&nbsp;</strong>&ndash; engaging in a scheme of bribes and kickbacks involving the company which would have&nbsp;transported the U.S. uranium sold to Russia in the &rsquo;20 percent&rsquo; deal.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>&ldquo;<strong>The Russians were compromising American contractors in the nuclear industry with kickbacks and extortion threats, all of which raised legitimate national security concerns.&nbsp;And&nbsp;none of that evidence got aired before the Obama administration made those decisions</strong>,&rdquo; a person who worked on the case told The Hill, speaking on condition of anonymity for fear of retribution by U.S. or Russian officials.&quot; </em>&ndash;<a href="" rel="noopener noreferrer" target="_blank">The Hill</a></p> </blockquote> <p>In short,&nbsp;<strong>the FBI had ample evidence of the Russian plot&nbsp;before&nbsp;the Obama administration approved the Uranium One deal.</strong></p> <p><u><strong>Iron-Clad Gag Order Lifted</strong></u></p> <p>The FBI informant &ndash; outed five days ago as energy consultant William Campbell&nbsp;-was &ldquo;<a href="" rel="noopener noreferrer" target="_blank">threatened</a>&rdquo; by Obama admin AG Loretta Lynch to keep quiet, according to his attorney &ndash; former Reagan Justice Dept. official and former Chief Counsel to the Senate Intelligence Committee Victoria Toensing. After Senate Judiciary Committee Chairman Chuck Grassley (R-VA) demanded Campbell be allowed to testify in front of Congress, the gag order was lifted.</p> <p><strong>Sessions And The DOJ are running Interference</strong></p> <p><a href=""><img height="151" src="" style="float: right; margin-left: 10px; margin-right: 10px;" width="227" /></a>In a move which can only be interpreted as an effort to protect the&nbsp;FBI, the Obama administration and the Clintons,&nbsp;<strong>AG Jeff Sessions and several Justice Dept. officials have been casting&nbsp;doubt on the value of Campbell&rsquo;s&nbsp;evidence, along with the need for a Special Counsel to investigate.</strong></p> <p>Via John Solomon of&nbsp;<em><a href="" rel="noopener noreferrer" target="_blank">The Hill</a>:&nbsp;</em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;both Attorney General&nbsp;Jeff Sessions&nbsp;in testimony last week and Deputy Attorney General Rod Rosenstein in a letter to the Senate last month&nbsp;tried to suggest there was no connection between Uranium One and the nuclear bribery case.Their argument was that the criminal charges weren&rsquo;t filed until 2014, while the Committee of Foreign Investment in the United States (CFIUS) approval of the Uranium One sale occurred in October 2010.&rdquo;</p> </blockquote> <p><strong>This is, allegedly, a lie which has rubbed several Congressional republicans the wrong way:</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<strong>Attorney General Sessions seemed to say that the bribery, racketeering and money laundering offenses involving Tenex&rsquo;s Vadim Mikerin occurred after the approval of the Uranium One deal by the Obama administration. But we know that the FBI&rsquo;s confidential informant was actively compiling incriminating evidence as far back as 2009</strong>,&rdquo;&nbsp;Rep. Ron DeSantis, (R-Fla.) told The Hill.</p> <p>&nbsp;</p> <p>&ldquo;It is&nbsp;<strong>hard to fathom how such a transaction could have been approved without the existence of the underlying corruption being disclosed</strong>.&nbsp;I hope AG Sessions gets briefed about the CI and gives the Uranium One case the scrutiny it deserves,&rdquo; added DeSantis, whose House Oversight and Government Reform subcommittees is one of the investigating panels.</p> <p>&nbsp;</p> <p>Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) sent a similar rebuke last week to Rosenstein, saying the deputy attorney general&rsquo;s first response to the committee &ldquo;largely missed the point&rdquo; of the congressional investigations.</p> <p>&nbsp;</p> <p><strong>&ldquo;The essential question is whether the Obama Justice Department provided notice of the criminal activity of certain officials before the CFIUS approval of the Uranium One deal and other government decisions that enabled the Russians to trade nuclear materials in the U.S</strong>,&rdquo;&nbsp;Grassley scolded.&quot;</p> </blockquote> <p><strong><a href=""><img height="132" src="" style="float: right; margin-left: 10px; margin-right: 10px;" width="182" /></a>Meanwhile,</strong> John Solomon and journalist Sara Carter&nbsp;<strong>have copies of the FBI informant&rsquo;s evidence</strong>, and Carter just annihilated&nbsp;the DOJ in an&nbsp;<a href="" rel="noopener noreferrer" target="_blank">explosive report</a>&nbsp;laying out the players, the timeline, and the evidence at hand.</p> <p><strong>&ldquo;By the time the sale of Uranium One was approved by the Obama Administration, the FBI&rsquo;s investigators had already gathered substantial evidence and the bureau was also aware of Russia&rsquo;s intentions to enter the U.S. energy market and its desire to purchase a stake in American uranium,</strong>&rdquo; Carter writes.</p> <p><strong>Highlights:&nbsp;</strong></p> <ul> <li>FBI mole William Campbell was a highly valued FBI asset - paid $51,000 by FBI officials at a celebration dinner in Chrystal City, VA, where Campbell&#39;s attorney says they thanked him for his service.</li> <li>Campbell&nbsp;<strong>was required by the Russians, under threat, to launder large sums of money -&nbsp;which allowed the FBI to uncover a&nbsp;massive Russian &quot;nuclear money laundering apparatus</strong>&quot;</li> <li>Campbell collected over 5,000 documents and briefs over a six year period</li> <li>Campbell uncovered a Russian plot to penetrate the Obama administration and gain approval for the Uranium One sale, including a 2010 email which describes&nbsp;&quot;<strong>Russia&#39;s intent on expanding&nbsp;its Uranium&nbsp;expansion in the United States.&quot;&nbsp;</strong></li> </ul> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><div>&nbsp;</div> <p><em>&ldquo;The attached article is of interest as I believe it highlights the ongoing resolve in Russia to gradually and systematically acquire and control global energy resources,&rdquo; said Fisk,&nbsp;who titled the subject line of the email &lsquo;Russian uranium.&rsquo;&nbsp;&nbsp;The article attached to Fisk&rsquo;s email, was a Reuters report in June, 2010, titled&nbsp;&lsquo;Despite price falls, ARMZ confident of Uranium One shareholder approval. -<a href="" rel="noopener noreferrer" target="_blank">Sara Carter</a></em></p> </blockquote> <p>&ldquo;<strong>This is not just about bribery and kickbacks but about a U.S. company that was transporting yellow-cake for the Russians with our approval</strong>,&rdquo; an unnamed U.S. Intelligence official told Carter, adding &ldquo;<strong>This should raise serious questions</strong>.&nbsp;At the time everyone was concerned about Russia&rsquo;s ties to Iran, we still are. And of course, Russia&rsquo;s intentions and reach into the U.S. energy market.&rdquo;</p> <p><strong>And after all of that, </strong>Attorney General Jeff Sessions doesn&rsquo;t think there&nbsp;is&nbsp;&ldquo;enough basis&rdquo; to appoint a second Special Counsel to investigate the Uranium One deal.</p> <p>Moreover, Carter reports that &ldquo;<strong>several Justice Department officials, who formerly commended Campbell, have spoken on background to other news agencies disparaging Campbell and his work at that time&rdquo; </strong>&ndash; despite the FBI&rsquo;s glowing review and $51,000 check.</p> <p><strong>Carter writes:</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;In a story by Michael Isikoff, published on Yahoo,&nbsp;a <strong>DOJ official involved in the case stated that Campbell was a &ldquo;disaster&rdquo; as a potential witness and that &ldquo;there was no question that Campbell&rsquo;s credibility was such that the prosecutors had to restructure the case</strong>,&rdquo;&nbsp;the source said.&ldquo;He got cut out of the case entirely.&rdquo; It is important to note that Campbell was going through 35 intense radiation treatments after being diagnosed with cancer during his time with the FBI, according to hospital records.</p> <p>&nbsp;</p> <p>After years of effective reporting and working in harms way, the cancer diagnosis and treatment had a profound effect on Campbell&rsquo;s ability to interact with in the final stages prior to the indictments, &nbsp;said Toensing.</p> <p>&nbsp;</p> <p><strong>She said her client is ready to present Congress with all he knows and called the stories a &ldquo;smear job.&rdquo; </strong></p> <p>&nbsp;</p> <p><strong>&ldquo;This is what the left do-provide false talking points to compromised reporters who are willing to regurgitate whatever they are fed,&rdquo; </strong>said Toensing.&quot;</p> </blockquote> <p>Keep in mind &ndash;&nbsp;all it took for Rod Rosenstein to establish Mueller&rsquo;s Special Counsel on Russian influence was a&nbsp;<a href="" rel="noopener noreferrer" target="_blank">dubious</a>&nbsp;Russian hacking report by a discredited DNC-linked security firm and a hearsay memo from former FBI director James Comey, stating that President Trump asked him to go easy on former National Security Advisor Mike Flynn.</p> <p>If the DOJ continues to stonewall the Uranium One investigation and Campbell&rsquo;s testimony is given the runaround, one has to wonder if any of the 5,000 documents &ndash; or even the Russian bribe video &ndash; will mysteriously appear in the public domain for the world to see.</p> <p><em>Follow on Twitter @<a href="">ZeroPointNow</a></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="300" height="169" alt="" src="" /> </div> </div> </div> Committee of Foreign Investment Committee on Foreign Investment in the United States Congress Corruption Department of Justice DOJ FBI Federal Bureau of Investigation Federal Bureau of Investigation Iran Jeff Sessions Judiciary Committee national security New York Times None Obama Administration Obama administration Racketeering radiation Reuters Rod Rosenstein Rosatom Russian interference in the 2016 United States elections Senate Senate Intelligence Committee Testimony Twitter Twitter U.S. intelligence United States United States Department of Justice United States intelligence agencies Uranium Uranium Uranium One Tue, 21 Nov 2017 13:22:42 +0000 Tyler Durden 607654 at DOJ Launches Probe Into Harvard's Affirmative Action Admissions <p>The Department of Justice is taking its first tentative steps toward dismantling the 40-year-old system of affirmative action that governs admissions at US colleges and universities by opening an investigation into the admissions practices of America&rsquo;s oldest and most venerated institution of higher education: <strong>Harvard</strong>.</p> <p><a href=""><img alt="" src="" style="width: 500px; height: 236px;" /></a></p> <p>According to the <a href="">Wall Street Journal</a>, the DOJ&rsquo;s investigation into the use of race in its admissions process was inspired by a federal civil lawsuit filed in 2014 that alleged the university discriminates against Asian-Americans. The Department of Education dismissed the group&rsquo;s allegations back in 2015. The lawsuit was brought by Edward Blum, a conservative lawyer who has focused on eliminating affirmative action. Blum, who successfully sheparded a case alleging the University of Texas discriminated against a white student all the way to the Supreme Court last year, laid out his arguments in a <a href="">Washington Post</a> op-ed published back in August, where he pointed out that the DOJ was already investigating incidences of discrimination against Asian Americans.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>It is unfortunate that the Supreme Court has allowed universities to grant preferences to applicants based on race and ethnicity. Last year in Fisher v. University of Texas &mdash; in which Students for Fair Admissions provided counsel to the plaintiff &mdash; the Supreme Court allowed the University of Texas at Austin to continue the practice. Nonetheless, in Fisher and earlier cases, the court has been clear about the how these racial preferences must be implemented: Purposeful quotas and racial balancing are strictly prohibited. And, of course, diversity can never be a justification for invidious discrimination.</p> <p>&nbsp;</p> <p>Proving that Harvard discriminates against Asian Americans is a complex and laborious process that will ultimately play out in open court for all of America to see. But one fact is indisputable: From 1992 through 2013, the percentage of Asians admitted to Harvard each year has been remarkably stable. In 1992, 19 percent of admitted students were Asian, while in 2013, 18 percent were Asian. This is true even though the number of Asian applicants to elite schools have disproportionately risen in recent decades. Research also shows that Asian applicants make up a large percentage of the most qualified applicants.</p> </blockquote> <p><strong>The issue at the crux of the DOJ&rsquo;s suit is that the composition of Asians in elite schools&rsquo; student bodies has remained, more or less, constant for the 30 years even as the number of Asian-American applicants has increased, which suggests that these schools are adhering to an illegal quota system. </strong></p> <p>As <a href="">WSJ </a>points out, Asian-American groups have been raising questions about the unfairness of university admissions policies since 1989. But last year&rsquo;s 4-3 Supreme Court ruling in favor of the University of Texas left the door open to future legal challenges by saying universities should continue to review their affirmative-action policies to assess their positive and negative effects.</p> <p>Furthermore, the DOJ is also alleging that Harvard has obstructed its investigation by failing to turn over certain documents requested by the DOJ&rsquo;s civil rights division. Harvard&rsquo;s chief attorney has challenged the authority of the Justice Department&rsquo;s Civil Rights Division to investigate the school under Title VI. In response, the Justice Department said the investigation was properly delegated to that division.</p> <p>The DOJ provided ample warnings and hints that it intended to investigate affirmative action practices, even posting a jobs listing in August seeking attorneys with experience in affirmative action cases.</p> <p>Should Harvard lose this court battle, the school could lose its access to federal funds under Title VI of the Civil Rights act (luckily, the university still has a $40 billion endowment to fall back on). The plaintiffs in the lawsuit are members of Students for Fair Admissions, which includes a group of Asian American students who were denied entry to Harvard.</p> <p>Of course, Harvard is hardly the only school in the Ivy League that has been investigated for its admissions practices pertaining to Asian applicants. <a href="">Buzzfeed </a>back in May published a trove of documents from Princeton&rsquo;s admissions department. The files provided unprecedented insight into the role that race plays in admissions - a revelation that unsurprisingly angered Asian-American student groups. In the files, admissions officers rejected Asian candidates with strong test scores and grades because they had &ldquo;similar profiles&rdquo; to other applicants, and referred to some candidates as &quot;standard pre-med&quot;.</p> <p>Given that revelation, we imagine the DOJ will soon move on to target other elite schools as it seeks to fundamentally change the federal guidelines surrounding college admissions. Widespread cried of racism by admissions committees will hardly be far behind...</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="881" height="415" alt="" src="" /> </div> </div> </div> Affirmative action Affirmative action in the United States Department of Education Department of Justice Department of Justice Discrimination Education Education Education policy Edward Blum federal guidelines surrounding college Fisher Fisher v. University of Texas Harvard Harvard University Ivy League Justice Department’s Civil Rights Division Politics Social inequality Structure Supreme Court Supreme Court of the United States University and college admissions University of Texas University of Texas at Austin Wall Street Journal Tue, 21 Nov 2017 13:07:41 +0000 Tyler Durden 607648 at Frontrunning: November 21 <ul> <li>U.S. sues to stop AT&amp;T buying Time Warner, says would hike rates (<a href="">Reuters</a>)</li> <li>Merkel Tells Her Rivals: Back Me or Face Voters (<a href="">BBG</a>)</li> <li>German Turmoil Threatens Europe (<a href="">WSJ</a>)</li> <li>European Giants Are Making a Bad Month Worse for Stock Market (<a href="">BBG</a>)</li> <li>Taylor Swift Is Building a Wall (<a href="">VF</a>)</li> <li>Balance of Power: Putin Reaches for Prize with Syrian Victory (<a href="">BBG</a>)</li> <li>Iran's president declares end of Islamic State (<a href="">Reuters</a>)</li> <li>At the Riyadh Ritz, Detained Saudis Negotiate for Freedom (<a href="">WSJ</a>)</li> <li>Iraq Is Giving OPEC a Big Headache (<a href="">BBG</a>)</li> <li>Brexit-Hit Banks to Start Moving Staff in Early 2018 (<a href="">BBG</a>)</li> <li>Judge in California blocks Trump's order on sanctuary cities (<a href="">Reuters</a>)</li> <li>21st Century Fox in $90 million settlement tied to sexual harassment scandal (<a href="">Reuters</a>)</li> <li>Tencent's stellar share rally sees it surpass Facebook in market value (<a href="">Reuters</a>)</li> <li>Asia's Richest Banker Spots a Once-in-a-Lifetime Opportunity (<a href="">BBG</a>)</li> <li>New Venture Funds Thrive as More Investors Put Money in Tech (<a href="">WSJ</a>)</li> <li>Counting the costs: U.S. hospitals feeling the pain of physician burnout (<a href="">Reuters</a>)</li> <li>Tillerson accused of violating law on child soldiers (<a href="">Reuters</a>)</li> <li>Fear of Tech Giants Fuels Deal Boom (<a href="">WSJ</a>)</li> <li>Czech police ask parliament to allow prosecution of prospective PM Babis (<a href="">Reuters</a>)</li> <li>Nestle Is Among Potential Suitors for Hain Celestial (<a href="">BBG</a>)</li> <li>Nestle Unions Say More Than 1,000 French Jobs May Be at Risk (<a href="">BBG</a>)</li> <li>Once inside Kim Jong Un's inner circle, top aide's star fades (<a href="">Reuters</a>)</li> <li>Here’s a List the Nordics Would Rather Not Top&nbsp; (<a href="">BBG</a>)</li> </ul> <p><strong>Overnight Media Digest</strong></p> <p><em><span style="text-decoration: underline;">WSJ</span></em></p> <p>- Starboard Value LP has taken a 10.7 percent stake in Mellanox Technologies Ltd, urging the company to improve its margins and stock and explore a potential sale.</p> <p>- Federal regulators this week are expected to unveil their plans for reversing Obama-era rules that require internet-service providers to treat all web traffic equally, a move that could fundamentally reshape the internet economy and consumers’ online experience.</p> <p>- The Justice Department asked the Supreme Court to fully reinstate its travel restrictions on residents of six Muslim-majority countries, the latest move in a legal battle over entry to the United States that has raged since the Trump administration's first days.</p> <p>- Nebraska officials approved the Keystone XL pipeline, removing its last major regulatory hurdle, though the future of the long-delayed project remains far from certain.</p> <p>- The Justice Department sued to block AT&amp;T Inc from taking over Time Warner Inc on Monday, a sweeping challenge to a deal it says would give one company too much control in a rapidly evolving media landscape.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">FT</span></em></p> <p>Financier Amanda Staveley has made a formal offer of up to 300 mln pounds for Newcastle United, in a move that values the Premier League football club below the sum sought by Mike Ashley, its entrepreneur owner.</p> <p>Uber Technologies Inc has entered an agreement to buy thousands of cars from Volvo AB to prepare a fleet of fully driverless on-demand vehicles, in a significant acceleration of the ride-hailing company’s ambitions in the area.</p> <p>Goldman Sachs Group Inc chief executive confirmed the U.S. investment bank will have hubs in both Frankfurt and Paris after Brexit as it prepares to shift jobs out of the UK.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">NYT</span></em></p> <p>- Marvell Technology Group Ltd, which has its headquarters in Bermuda, is buying Cavium Inc based in San Jose, California. The resulting company will produce chips used in hard disk controllers, data processors and network channels. The companies expect to save as much as $175 million within 18 months of closing the deal.</p> <p>- The New York Times said it was suspending Glenn Thrush, one of its most prominent reporters, after he was accused of inappropriate sexual behavior.</p> <p>- The Justice Department sued to block AT&amp;T Inc 's$85.4 billion bid for Time Warner Inc on Monday, setting up a showdown over the first blockbuster acquisition to be considered by the Trump administration and drawing limits on corporate power in the fast-evolving media landscape.</p> <p>- The Mumbai-based Mahindra Group, said it would begin producing off-road recreational and work vehicles at the plant, in Auburn Hills, early next year. It indicated that this might be just a first step in its ambitions for the American market.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Canada</span></em></p> <p>THE GLOBE AND MAIL</p> <p>** Nebraska has approved an alternative route for TransCanada Corp's $8 billion Keystone XL pipeline, a ruling that removes a key hurdle in the decade long-quest to link Alberta's oil sands to U.S. refineries on the Gulf Coast.</p> <p>** Three Glencore Plc executives have resigned from the board of its Toronto-listed subsidiary Katanga Mining Ltd after an internal review found "material weaknesses" in its financial reporting controls, amid a regulatory probe by the Ontario Securities Commission (OSC).</p> <p>** The plan by General Motors Co to perform final assembly of full-sized pickup trucks in Oshawa, Ontario, will lead to production of about 60,000 vehicles at the assembly plant in that city, the auto maker has confirmed.</p> <p>NATIONAL POST</p> <p>** The Public Interest Advocacy Centre, a consumer rights group, argues consumers could face prolonged bill shock if the Canadian Radio-television and Telecommunications Commission gives wireless carriers extra time to implement protections on how customers are billed for international roaming and data usage.</p> <p>** Alberta-based Aurora Cannabis Inc announced its intention to launch a takeover bid for Saskatchewan-based CanniMed Therapeutics Inc, another medical marijuana producer. </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Britain</span></em></p> <p>The Times</p> <p>Baroness McGregor-Smith, the Conservative peer, is to be the subject of a second investigation by City regulators over her final months running the troubled outsourcer Mitie Group Plc .</p> <p>As losses at HBOS spiralled in early 2009, attending both its audit committee and then an audit committee for Lloyds Banking Group Plc was "one of the worst moments of my professional life", Jan du Plessis, one of the City's most experienced operators, has told the High Court.</p> <p>The Guardian</p> <p>London is losing the European Medicines Agency to Amsterdam and the European Banking Authority to Paris, in one of the first concrete signs of Brexit as the UK prepares to leave the European Union.</p> <p>British Gas owner Centrica Plc is to scrap its widely criticised standard variable tariff (SVT) for new customers from April, and other energy companies are expected to follow suit.</p> <p>The Telegraph</p> <p>The energy industry's war of wars with the government has escalated markedly after British Gas claimed ministers knew about its plans to end standard variable tariffs but pushed ahead with controversial plans for an energy price cap regardless.</p> <p>iSmash, the smartphone repair business backed by Carphone Warehouse co-founder David Ross, is ramping up expansion plans with a deal to launch three new concessions in Maplin.</p> <p>Sky News</p> <p>The controversial sportswear tycoon Mike Ashley is nearing the final whistle as the owner of Newcastle United Football Club after receiving a formal takeover offer from Amanda Staveley, the financier.</p> <p>Theresa May is visiting the West Midlands to promote a 1.7 billion pounds ($2.25 billion) investment as part of the government's industrial strategy, as the countdown to the Budget begins.</p> <p>The Independent</p> <p>British workers may be willing to accept lower wages in the wake of the Brexit vote, according to Dave Ramsden -- the newest member of the Bank of England's Monetary Policy Committee. </p> Bank of England's Monetary Policy Committee Bitly Brexit Business Canadian Radio-television and Telecommunications Commission Czech Czech police data processors Department of Justice European Banking Authority European Medicines Agency European Union European Union European Union General Motors Glencore goldman sachs Goldman Sachs Gulf Coast High Court Infrastructure International relations Iraq Keystone Pipeline KIM Lloyds Monetary Policy New York Times Newcastle United Football Club Ontario Securities Commission OPEC Organization of Petroleum-Exporting Countries Reuters Reuters smartphone Supreme Court SWIFT Time Warner Trump Administration Volvo Tue, 21 Nov 2017 13:00:27 +0000 Tyler Durden 607652 at Why Cryptos Will Not Replace Gold As A Store Of Value <p><span style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif;"><span style="font-size: 16px;"><strong><a href="">Why Cryptos Will Not Replace Gold As A Store Of Value</a></strong></span></span></p> <p><span style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif;"><span style="font-size: 16px;"><strong>&nbsp;</strong></span></span><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Gold versus Bitcoin: The pro-gold argument takes shape</strong><br /><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Why cryptocurrencies will not replace gold as a&nbsp;store of value</strong><br /><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Similarities between crypto and gold but that does not make them substitutes</strong><br /><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Gold remains a highly liquid market, cryptocurrencies continue to be fragmented and difficult to spend</strong><br /><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Bitcoin&nbsp; does not make it an effective hedge against&nbsp;stocks<br />- Gold coins and bars cannot be hacked and vaults are insured</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href=""><img src="" width="640" height="480" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-12453" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This weekend saw bitcoin shoot up over $8,000 and Bloomberg covered how some preppers were turning to bitcoin over gold. Does this mean it's all over for gold? Is it set to be supplanted as a safe haven by crypto currencies?</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hardly.&nbsp;People read such information and continue to believe that gold and cryptocurrencies are substitute assets. They are not. So why are they so often pitched against one another?</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Bitcoin and its contemporaries clearly have a role to play, the volume of demand demonstrates this and the technology is powerful. But, that role is not as a replacement for gold as a store of value.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="" target="_blank">Risk Hedge</a>&nbsp;sums it up saying:</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>"Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge."</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Risk Hedge provided a great summary of the major flaws and differences in the gold versus crypto debate and the six reasons are listed below.</p> <blockquote style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><h3><strong>#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.</strong></h3> <p>The definition of “<a href="" target="_blank" rel="noopener noreferrer">fiat money</a>” is a currency that is legal tender but not backed by a physical commodity.</p> <p>Since the United States abandoned the gold standard in the 1970s, this has been the case with all major currencies, including the US dollar.</p> <p>Ever since then, US money supply has kept increasing, and so has the national debt. In contrast, the dollar’s purchasing power has been on the decline.</p> <p>Take a look at this historical gold price chart.</p> <p><img src="" style="height: auto; max-width: 100%;" class="fr-fic fr-dib" /></p> <p>The huge spike in gold prices started right around the time when the Bretton Woods agreement collapsed in 1971 and US paper dollars couldn’t be converted to gold anymore. A clear sign of the decline in the dollar’s purchasing power since the move into a pure fiat money system.</p> <p>It’s clear that cryptocurrencies partially fit the definition of fiat money. They may not be legal tender yet, but they’re also not backed by any sort of physical commodity. And while total supply is artificially constrained, that constraint is just... well, artificial.</p> <p>You can’t compare that to the physical constraint on gold’s supply.</p> <p>Some countries are also exploring the idea of introducing government-backed cryptocurrencies, which would take them one step closer toward fiat-currency status.</p> <p>As&nbsp;<a href="" target="_blank" rel="noopener noreferrer">Russia</a>,&nbsp;<a href="" target="_blank" rel="noopener noreferrer">India</a>, and&nbsp;<a href="" target="_blank" rel="noopener noreferrer">Estonia</a>&nbsp;are considering their own digital money,&nbsp;<a href="" target="_blank" rel="noopener noreferrer">Dubai</a>&nbsp;has already taken it one step further. In September, the kingdom announced that it has signed a deal to launch its own blockchain-based currency known as emCash.</p> <p>So ask yourself, how can you effectively hedge against a fiat money system with another type of fiat money?</p> <h3><strong>#2: Gold Has Always Had and Will Always Have an Accessible Liquid Market.</strong></h3> <p>An asset is only valuable if other people are willing to trade it in return for goods, services, or other assets.</p> <p>Gold is one of the most liquid assets in existence. You can convert it into cash on the spot, and its value is not bound by national borders. Gold is gold—anywhere you travel in the world, you can exchange gold for whatever the local currency is.</p> <p>The same cannot be said about cryptocurrencies. While they’re being accepted in more and more places, broad, mainstream acceptance is still a long way off.</p> <p>What makes gold so liquid is the immense size of its market. The larger the market for an asset, the more liquid it is. According to the World Gold Council, the total value of all gold ever mined is about $7.8 trillion.</p> <p>By comparison, the total size of the cryptocurrency market stands at about&nbsp;<a href="" target="_blank" rel="noopener noreferrer">$161 billion</a>&nbsp;as of this writing—and that market cap is split among 1,170 different cryptocurrencies.</p> <p>That’s a long shot from becoming as liquid and widely accepted as gold.</p> <h3><strong>#3: The Majority of Cryptocurrencies Will Be Wiped Out.</strong></h3> <p>Many Wall Street veterans compare the current rise of cryptocurrencies to the Internet in the early 1990s.</p> <p>Most stocks that had risen in the first wave of the Internet craze were wiped out after the burst of the dot-com bubble in 2000. The crash, in turn, gave rise to more sustainable Internet companies like Google and Amazon, which thrive to this day.</p> <p>The same will probably happen with cryptocurrencies. Most of them will get wiped out in the first serious correction. Only a few will become the standard, and nobody knows which ones at this point.</p> <p>And if major countries like the US jump in and create their own digital currency, they will likely make competing “private” currencies illegal. This is no different from how privately issued banknotes are illegal (although they were legal during the Free Banking Era of 1837–1863).</p> <p>So while it’s likely that cryptocurrencies will still be around years from now, the question is, which ones? There is no need for such guesswork when it comes to gold.</p> <h3><strong>#4: Lack of Security Undermines Cryptocurrencies’ Effectiveness.</strong></h3> <p>Security is a major drawback facing the cryptocurrency community. It seems that every other month, there is some news of a major hack involving a Bitcoin exchange.</p> <p>In the past few months, the relatively new cryptocurrency Ether has been&nbsp;<a href="" target="_blank" rel="noopener noreferrer">a target for hackers</a>. The combined total amount stolen has almost reached $82 million.</p> <p>Bitcoin, of course, has been the largest target. Based on current prices, just one robbery that took place in 2011 resulted in the hackers taking hold of over $3.7&nbsp;<em>billion</em>&nbsp;worth of bitcoin—a staggering figure. With security issues surrounding cryptocurrencies still not fully rectified, their capability as an effective hedge is compromised.</p> <p>When was the last time you heard of a gold depository being robbed? Not to mention the fact that most depositories have full insurance coverage.</p> <h3><strong>#5: Hype and Speculation Continue to Drive Cryptocurrencies’ Value.</strong></h3> <p>Since the beginning of the year, the value of Bitcoin has more than quadrupled—a tremendous spike in value that has sent investors rushing to invest in cryptocurrencies. But could this be nothing more than a market bubble?</p> <p>One of the world’s most successful hedge fund managers, Ray Dalio of Bridgewater Associates, certainly seems to think so.</p> <p>In September 2017, he told&nbsp;<a href="" target="_blank" rel="noopener noreferrer">CNBC</a>, “It's not an effective store hold of wealth because it has volatility to it, unlike gold. Bitcoin is a highly speculative market. Bitcoin is a bubble.”</p> <p>The spike in Bitcoin prices seems to only lend credence to this view. With such an extreme degree of volatility, cryptocurrencies’ value as a hedge is questionable. Most people buy them for the sole reason of selling them later at higher prices.</p> <p>This is pure speculation, not hedging.</p> <h3><strong>#6: Cryptocurrencies Do Not Have Gold’s History as a Store of Value.</strong></h3> <p>Cryptocurrencies have been around for less than a decade, whereas gold has been used as a store of value for thousands of years. Because of this long history, we know for a fact that stocks and bonds have low or negative correlations with gold, particularly during periods of economic recession. This makes gold a powerful hedge.</p> <p>What little data we have on cryptocurrencies does not show the same. Consider this year alone: while the US stock market continues to run record highs, the same goes for Bitcoin.</p> <p>It’s true that gold has also gone up, but the correlation has been very low and, during times of recessions, tends to swing to the negative side, as you can see in the graph below.</p> <p><img src="" style="height: auto; max-width: 100%;" class="fr-fic fr-dib" /></p> <p>Since 2010, there have been 15 times where the S&amp;P 500 has seen drops of 5% or more. Out of those 15 stock market downturns, Bitcoin has been down for 10 of them.</p> <p>How is that a good hedge?</p> <p><strong>Read the original article&nbsp;<a href="">here</a></strong></p> </blockquote> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><br />Related Content</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="" target="_blank">Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="" target="_blank">Gold Is Better Store of Value Than Bitcoin – Goldman Sachs</a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="" target="_blank"><strong>Bitcoin and Gold – Outlook and Safe Haven?</strong></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>News and&nbsp;Commentary</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Gold falls on pressure from stronger dollar, rate hikes in focus (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Asian Stocks Advance; Dollar, Treasuries Steady (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Gold, Euro Slump As Merkel Admits “New Elections Are The Better Way” (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Yellen Says She’ll Leave Fed Once Powell Sworn in as Chair (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">No EU deposit insurance if bad loans not cut: ECB's Draghi (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href=""><img src="" style="height: auto; max-width: 100%;" /></a>Source: Bloomberg</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Gold Drops To Key Technical Support After $2 Billion Purge (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Gold is rising despite threat of higher interest rates - Rickards (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">Thorne, Magic Money, and Cyberbucks: Three pre-Bitcoin monetary experiments (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">The Fed Plans For The Coming Recession - Next-Generation Crazy (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">ECB wants to end deposit protection &amp; offer savers 'appropriate amount' of their own money (</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold Prices (LBMA AM)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">21 Nov: USD 1,280.00, GBP 967.04 &amp; EUR 1,090.69 per ounce<br />20 Nov: USD 1,292.35, GBP 974.82 &amp; EUR 1,096.43 per ounce<br />17 Nov: USD 1,283.85, GBP 969.31 &amp; EUR 1,088.19 per ounce<br />16 Nov: USD 1,277.70, GBP 969.01 &amp; EUR 1,085.53 per ounce<br />15 Nov: USD 1,285.70, GBP 976.62 &amp; EUR 1,086.29 per ounce<br />14 Nov: USD 1,273.70, GBP 972.47 &amp; EUR 1,086.59 per ounce<br />13 Nov: USD 1,278.40, GBP 977.59 &amp; EUR 1,097.89 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Silver Prices (LBMA)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">21 Nov: USD 17.00, GBP 12.85 &amp; EUR 14.50 per ounce<br />20 Nov: USD 17.15, GBP 12.94 &amp; EUR 14.56 per ounce<br />17 Nov: USD 17.09, GBP 12.95 &amp; EUR 14.49 per ounce<br />16 Nov: USD 17.04, GBP 12.92 &amp; EUR 14.48 per ounce<br />15 Nov: USD 17.12, GBP 13.00 &amp; EUR 14.45 per ounce<br />14 Nov: USD 16.94, GBP 12.92 &amp; EUR 14.45 per ounce<br />13 Nov: USD 16.93, GBP 12.93 &amp; EUR 14.53 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><br />Recent Market Updates</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="">-&nbsp;Money and Markets Infographic Shows Silver Most Undervalued Asset</a></strong><br /><strong><a href="">-&nbsp;Is New Fed Chief A “Swamp Critter Extraordinaire”?</a></strong><br /><strong><a href="">-&nbsp;Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe</a></strong><br /><strong><a href="">-&nbsp;UK Debt Crisis Is Here – Consumer Spending, Employment and Sterling Fall While Inflation Takes Off</a></strong><br /><strong><a href="">-&nbsp;Protect Your Savings With Gold: ECB Propose End To Deposit Protection</a></strong><br /><strong><a href="">-&nbsp;Internet Shutdowns Show Physical Gold Is Ultimate Protection</a></strong><br /><strong><a href="">-&nbsp;Gold Coins and Bars Saw Demand Rise 17% to 222T in Q3</a></strong><br /><strong><a href="">-&nbsp;Prepare For Interest Rate Rises And Global Debt Bubble Collapse</a></strong><br /><strong><a href="">-&nbsp;Platinum Bullion ‘May Be One Of The Only Cheap Assets Out There’</a></strong><br /><strong><a href="">-&nbsp;World’s Largest Gold Producer China Sees Production Fall 10%</a></strong><br /><strong><a href="">-&nbsp;German Investors Now World’s Largest Gold Buyers</a></strong><br /><strong><a href="">-&nbsp;Gold Price Reacts as Central Banks Start Major Change</a></strong><br /><strong><a href="">-&nbsp;Why Switzerland Could Save the World and Protect Your Gold</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">&nbsp;</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Important&nbsp;<span class="m_-928942620346942956il">Guides</span></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">For your perusal, below are our&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">most</span>&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">popular</span>&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">guides</span>&nbsp;in 2017:</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*N5MhbFRBkTqXW95dlRy194d-P0/5/f18dQhb0S5ft8X-f1rW8cCGTT51FcdHN5s9DSvWrM1ZW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z_p0c67hcl-W1qMTKP5xLd3bN8zTG51RBdNtW3L39B54P7Fz2W8rCHmp3PnStQVS9p0b63dhWbW8mp0Tc5x5KNkW7-XB_567h1CPW8r5PXz49z-4PN2MV0Xm5w8jDW1mw3yc59SFsZN4H-tjrQC5z2VPC2cV7gvpc4W4XYhBl2y9PQJW4sxqtN7h5hQFW28TbSB2Cg_LLW96LzRy5DkRJDW5BRXXj2y4Lc7N3Kd2SV_-Nf6W3brNsz66rKFTW2xH0xz1lcG1VVQBGcH5DQdGhN22JjmzdPgQwW9464-Y5GFs9DW4Rj6Nh6BzJrnN45Ly2MkwRN4W8qYMH51FnsVDW2X9_p02MVHnbN2GZdYq215_BW1J7MZd3mgJK7W4F32xR1JjtM5W4Bn5JG3ZzLH2W5jL56q7dkHC7W3VtW1b1MWhN-W1MKd944yqBfl111" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;To Storing Gold In Switzerland</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*W5Hh19S2J1j6jW1gxPj45yTRLt0/5/f18dQhb0S5fw8X-fbXW8cCGTT51FcdHN5s9DSvWrM1YW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z_p0c67hcl-W1qMTKP5xLd3bN8zTG51RBdNtW3L39B54P7Fz2W8rCHjG25x99KVwyMQc6PVJWyW625bx16Gj8TSW6bVy-525hjVhW83KHrF7J39qHN2m8DqKmmF0wW1jsTjn5VDnrHVbq5fx4TKc2lW6Rjg6t5Pk17jW2xZzRk8LpcPpW36k5sF4FnHNZW1mvfQB2BpzSjN1mT8mr2g4dYW5VZ-P_37vq3BW2--Tfh1w3GzfW5CkFpW6ZccdyW5vvKY_3N2S6fW3KRSNH8yxr7CW7YJp821cQlwRW63x06S1bBvW3W408wWR11rnNbV4Vjkz6NjfdLW55Fr2P5nn1d6W301cwV4GX00sW5hfR428jJDdkW4Cy2w54wj2JxVMFy4w4hyJQMV6N2-D1mPRd4N6YRN0Y4ZDMLD2LMBk7BT1f5Fq5PC03" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;To Storing Gold In Singapore</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*W7dc5x_8dXcz0W57pb-W8yRfPY0/5/f18dQhb0Sjv98X-fhGW8cCGTT51FcdHN5s9DSvWrBCVW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z0sTg7mCbb0W57V1HT7tVHF9W8Z32tg35s628W859LV685kgn-W5mG2963qCNtmW8hTG4j5Zh496W2d551v3pNnKLVLrb9R83_Pn-W7JCxGl81bhDKW7N_KqM11GBXTW41TlcR3TwTqzW19BjML1ks0KjW7RPZVs5-2sjBW7ZzDyK7GLjPjW2KH_vB6SdpRZW1hx1p11Gg3W9W6rwy5K1YZKs5W2gFslL6NqPjwW1tbMwf7n90PHW67SS1j224DVBW6SdFBY1S1FW8W1Th1-Q1X2dwGW1swLvy81myPRW1B9M4Q6SdHPtW7C3gqS89xKZ9W1Ms6WG19gjwJN42ktpLPs031VgkKmy5qqk_FW41Q13s3srYmmW2-yGlm4v9PYhVmLW2J4r5l5jW7fnqv3187HWVW794lJw3T7yBDW1Zq0mT90vVQHW7SNfQy7BfhjRN3QzSrFQN_TjVcGblm3cFvNY0" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;to Tax Free Gold Sovereigns (UK)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Please share our research with family, friends and colleagues who you think would benefit from being informed by it.</p> Alternative currencies Bitcoin Bitcoin Blockchains Bridgewater Business Central Banks China Cryptocurrencies Cryptography Decentralization Digital currency Draft:EXMO Cryptocurrency Exchange Dubai Estonia European Central Bank European Union Finance goldman sachs Goldman Sachs Google India Legality of bitcoin by country or territory Money Money Supply National Debt Purchasing Power Ray Dalio Recession Reuters S&P 500 Sovereigns Switzerland US Federal Reserve Volatility World Gold Council World Gold Council Tue, 21 Nov 2017 12:34:13 +0000 GoldCore 607651 at Lebanese Army On "Full Combat Readiness" At Southern Border To Counter "Israeli Enemy" <p>Two days after Israel <a href="">provided the first ever official confirmation </a>of covert ties with Saudi Arabia, a step many analysts see as a precursor to future conflict in the Middle East involving adversaries Iran and Lebanon, on Tuesday the head of the Lebanese Army told the military to be at “full combat readiness” to face “the Israeli enemy” at the country's southern border. The announcement comes as Arab nations, including Saudi Arabia, vow to tighten their grip on Lebanon’s Hezbollah militia.</p> <p><a href=""><img src="" width="500" height="346" /></a></p> <p>"<strong>The army needs to be prepared to “confront the threats and violations of the Israeli enemy and its hostile intentions against Lebanon</strong>,” Joseph Aoun said on Tuesday, while urging the army to cooperate with United Nations forces in Lebanon under UN Security Council Resolution 1701, adopted to resolve the 2006 Israel-Lebanon conflict. The statement came after Lebanese President Michel Aoun said that “Israeli targeting still continues and it is the right of the Lebanese to resist it and foil its plans by all available means,” according to Reuters.</p> <blockquote class="twitter-tweet"><p dir="rtl" lang="ar">???? ????? ?????????: ?????? ??? ???????? ?????? ??? ?????? ???????? ??????? ??????? ????? ?????????? ????????? ??? ?????? ?? ????? ??????? ?? ????? ????? ?????? ??? ??? ????? ?????? ??? ??? ????? ?????? 1701 ???????? ???????? ?? ???? ????? ??????? ?? ?????? ?????? ??? ?????????.</p> <p>— ????? ???????? (@LebarmyOfficial) <a href="">November 21, 2017</a></p></blockquote> <script src=""></script><p>President Aoun’s remarks were echoed by Lebanese Foreign Minister Gebran Bassil, who also cautioned Tel Aviv against sparking a war, <a href="">according to RT</a>. Lebanon is ready to act, but will do its utmost to prevent Israel from an invasion, he told RT last week. “We should restrain Israel from starting a war exactly because Lebanon is sure to win it,” he said. </p> <p><em><a href=""><img src="" width="500" height="281" /></a><br />Lebanese Army soldiers. Hassan Abdallah / Reuters</em></p> <p>As <a href="">reported at the start of the month</a>, Lebanon has been undergoing a deep political crisis after Prime Minister Saad Hariri abruptly resigned on November 4 in a televised statement from Saudi Arabia. In his resignation address, Hariri accused Iran and Shiite Hezbollah militia of sowing strife in Arab countries.</p> <p>As <a href="">further reported</a>, on Sunday the Arab League called an emergency meeting in Cairo blaming Iran for destabilizing the region. The alliance also described Hezbollah as a terrorist organization, but stopped just short of threatening any action against either. Ahmed Aboul Gheit, the Arab League’s secretary-general, said its members may reach out to the UN Security Council to discuss possible steps against the Islamic republic. </p> <p>Meanwhile, Tehran dismissed the Arab League statement on Iran, saying it was “full of lies” and the product of Saudi “pressure and propaganda.” Iranian Foreign Ministry spokesman Bahram Ghasemi <strong>called on Saudi Arabia to stop its “barbaric attacks” in Yemen</strong>. <strong>He also called on Riyadh to drop its embargo on Qatar, a country which has close ties to Tehran.</strong></p> <p><strong>&nbsp;</strong>On Tuesday, president Aoun defended Hezbollah, saying his country had been subject to Israeli invasions for decades and therefore had the right to protect itself. Aoun rejected “insinuations accusing the Lebanese government of partnering in terrorist acts.”</p> <p><strong>"Lebanon has confronted Israeli aggressions from 1978 until 2006 and has been able to liberate its territories,” </strong>he added, as <a href="">cited by National News Agency</a>. </p> <p>For those who may have missed some of the recent, rapidly moving events in the region, here is a quick rundown:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Saudi Arabia, a regional arch-rival of Iran, has recently demanded that the Lebanese government pressurize Hezbollah to disarm, and also threatened to take action against Iran’s “aggressive” involvement in the affairs of Yemen and Lebanon. Speaking to Reuters last Thursday, Saudi Foreign Minister Adel Al-Jubeir said Riyadh is “reacting to that aggression and saying enough is enough.” </p> <p>&nbsp;</p> <p>The bellicose statements from Saudi Arabia notably coincided with comments made by Israel’s top political and military brass. On Sunday, Israel’s Energy Minister Yuval Steinitz told Israeli Army Radio that cooperation “with the moderate Arab world, including Saudi Arabia, is helping us curb Iran.” Steinitz added that his country, which fought Arab nations in several wars, is “usually the party that is not ashamed” of such ties. </p> <p>&nbsp;</p> <p>The disclosure comes days after Lieutenant General Gadi Eisenkot, chief of staff of the Israeli Defence Forces (IDF), said that Tel Aviv is willing to contribute to “a new international alliance” in the Middle East, which is determined “to stop the Iranian threat.”<em> </em>He said that, while Israel does not planning on striking Hezbollah, it is ready to share intelligence on Iran with Saudi Arabia. Tel Aviv and Riyadh do not have diplomatic ties with each another.</p> </blockquote> <p>Earlier this week, Iran reiterated once again it is determined to bring lasting peace to Syria, while its Gulf neighbors are sparking tensions in the region. Tehran has been working with international allies such as Russia and Turkey to ensure ceasefire in Syria and pave the way for political reconciliation, Iranian Foreign Minister Javad Zarif said on Sunday. At the same time, Riyadh “fuels terrorists, wages war on Yemen, blockades Qatar [and] foments crisis in Lebanon,” Zarif tweeted. The Iranian diplomat posted his statement after a new round of talks with his Russian and Turkish counterparts, Sergey Lavrov and Mevlut Cavusoglu, respectively who met in Antalya, Turkey, on Sunday to discuss the Syrian conflict.</p> <p>On Wednesday, the president of Iran and Turkey are set to meet with Russian president Putin in Sochi, where a day after a previously undisclosed meeting with Syrian leader al-Assad, Putin will seek to formalize the end of the Syrian civil war and establish the framework for the future in the middle east, one which certainly will include a prominent role for the Kremlin which has eagerly stepped into the power vacuum left by the receding US presence from the region. </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="900" height="506" alt="" src="" /> </div> </div> </div> Arab League army Hassan Nasrallah Hezbollah Hizballah International reactions to the 2006 Lebanon War International relations Iran Iranian Foreign Ministry Israel Israeli Army Radio Israeli Defence Forces Lebanese Army Lebanese government Lebanon Lebanon War Michel Aoun Middle East Middle East Middle East National News Agency Politics Politics of Lebanon Proxy wars Reuters Saudi Arabia Turkey U.N. Security Council United Nations War Tue, 21 Nov 2017 12:28:08 +0000 Tyler Durden 607649 at Bonds, Futures, Global Stocks All Rise, Boosted By "Germany's Brexit Moment"; TSY Curve Collapse Continues <p>S&amp;P 500 futures are higher, continuing on yesterday's momentum, after European and Asian shares also rose alongside a rebound in oil, as the year-end performance chase appears to be accelerating. There were several different moving parts in a mixed European session, in which early Euro strength gave way to weakness...</p> <p><a href=""><img src="" width="500" height="246" /></a></p> <p>... which in turn pushed the Stoxx 600 and US index futures higher, rising above yesterday's session high on negligible volumes.&nbsp; </p> <p><a href=""><img src="" width="500" height="238" /></a></p> <p>Global equity futures rallied with Hang Seng futures outperforming and flash smashing to close the session, after a strong finish for Chinese equities following a report out of MNI that Chinese deleveraging may not be as stringent next year. </p> <p>European stocks rose this morning (Stoxx 600 +0.3%) as the Euro sank, helped by positive notes out from Goldman Sachs, who are overweight European automakers.&nbsp; Goldman said in a Europe strategy note that “deep value sectors” (autos, oil, and utilities) will help Stoxx Europe to return 12% in next 12 months. As a result, European automakers outperform led by VW for a second straight day, with the SXAP index advancing as much as 1.9%, best of 19 groups on the Stoxx Europe 600 benchmark (Volkswagen +3.8%, Porsche +2.7%, BMW +2%, Daimler +1.7%).&nbsp; Additionally, Imperial Brand shares rallied after their CEO change, as analysts speculate that this could increase the likelihood that the company will be taken over by Japan Tobacco. Airliner EasyJet is flying high this morning following strong financial results. Bunds are taking another look at 163.00+ levels having faded rallies above the big figure on several occasions recently. </p> <p>Stocks have already moved on from this weekend's German government crisis: German President Frank-Walter Steinmeier said Germany was facing its worst governing crisis in the 68-year history of its post-World War Two democracy and pressed all parties in parliament “to serve our country” and try to form a government.</p> <p><strong>“The events have already been likened to Germany’s Brexit-moment,” </strong>said Daniel van Schoot, an economist at Rabobank. “That is perhaps exaggerated, but the German political situation is now very unpredictable, more than in the past three decades.”</p> <p>Bonds across the region followed a rise in Treasuries after the<br /> European Central Bank was said to be likely to make only small<br /> adjustments to its guidance on monetary policy next year. EGBs rallied led by gilts which are supported ahead of index extension tomorrow, additionally some focus from European traders on dovish ECB sources piece from yesterday. </p> <p>The dollar stayed within relatively tight ranges versus its major peers, with average volumes. The euro and the pound edged higher, backed by leveraged interest, only to be capped by their respective 55-DMAs before shedding gains. The Swedish krona led G-10 losses on the back of record low interbank rate fixings, while the Turkish lira pared a drop to an all-time low after the central bank raised borrowing costs. Meanwhile, sterling was steady and gilts advanced amid reports Prime Minister Theresa May has the backing of ministers to offer the European Union more money to break the Brexit deadlock. The Australian dollar dropped to a five-month low after suggestions from the central bank that interest rates will stay lower for longer; EUR/SEK breache'd 10.00 briefly before fading back. <strong>Turkey’s lira hit a new record low against the dollar but pared some of the drop after its central bank tightened liquidity, as the standoff between Erodogan and central bank continues.</strong></p> <p><a href=""><img src="" width="500" height="281" /></a></p> <p>In overnight central bank announcements, the Bank of England's Deputy Governor Cunliffe said inflation has been a bit lower than BoE forecast in Autumn and that it’s possible to wait before tightening policy until there is clear evidence that pay growth is responding to unemployment level. Elsewhere, RBA minutes from November 7th meeting stated that any further appreciation in AUD would slow expected pick-up in inflation and the economy. The minutes also stated that there is considerable uncertainty on how fast wages might pick up and add to inflation, while it added that a pass through to inflation may be delayed by many factors. RBA's Lowe stated that there is 'not a strong case' for near-term change in interest rates with the bank paying attention to soft wage growth. </p> <p>In the U.S., confirmation that Federal Reserve Chair Janet Yellen will leave the board in February creates a fourth vacancy for President Trump to fill, making it trickier for investors to bet on the central bank’s interest rate trajectory next year. While the Thanksgiving holiday gives traders an excuse to pause, equities are heading into the end of the year near their peaks, with investors optimistic about global growth and company earnings. </p> <p><strong>Meanwhile the collapse in the US Treasury curve continued</strong>, <strong>with 2s10s moving below 60bps, and screaming inversion as soon as early next year.&nbsp; </strong>At the same time, The gap between French and German borrowing costs on Tuesday narrowed to its tightest level since before the euro zone debt crisis of 2010-2012.&nbsp; Germany’s 10-year yield fell two basis points to 0.34%, the lowest in almost two weeks. Britain’s 10-year yield decreased four basis points to 1.257%, the lowest in almost two weeks. Japan’s 10-year yield dipped one basis point to 0.033%, the lowest in more than a week.</p> <p>Oil prices rose on expectations of an extended OPEC-led production cut, although rising output in the United States capped gains. Brent crude futures were up 0.78 percent to $62.72. &nbsp;&nbsp;&nbsp; West Texas Intermediate crude fell 0.6 percent to $56.09 a barrel. Gold increased 0.3 percent to $1,280.39 an ounce. Copper gained 0.3 percent to $3.13 a pound, the highest in more than a week.</p> <p>Expected economic data include Chicago Fed National Activity Index and existing home sales. Companies including Medtronic, Lowe’s, Salesforce, Analog Devices, HP Enterprise and HP Inc. are reporting earnings</p> <p><strong>Bulletin Headline Summary from RanSquawk</strong></p> <ul> <li>EU bourses firmer this morning with auto names racing away amid a positive note from Goldman Sachs</li> <li>FX price action fairly tepid thus far.</li> <li>Looking ahead, highlights include US existing home sales, APIs, ECB’s Coeure and Fed’s Yellen</li> </ul> <p><strong>Market Snapshot</strong></p> <ul> <li>S&amp;P 500 futures up 0.2% at 2,586.75</li> <li>STOXX Europe 600 up 0.3% at 387.49</li> <li>MSCI Asia up 0.9% to 171.57</li> <li>MSCI Asia ex Japan up 1.1% to 565.37</li> <li>Nikkei up 0.7% to 22,416.48</li> <li>Topix up 0.7% to 1,771.13</li> <li>Hang Seng Index up 1.9% to 29,818.07</li> <li>Shanghai Composite up 0.5% to 3,410.50</li> <li>Sensex up 0.4% to 33,492.20</li> <li>Australia S&amp;P/ASX 200 up 0.3% to 5,963.52</li> <li>Kospi up 0.1% to 2,530.70</li> <li>German 10Y yield fell 1.7 bps to 0.346%</li> <li>Euro down 0.08% to $1.1724</li> <li>Italian 10Y yield fell 2.7 bps to 1.543%</li> <li>Spanish 10Y yield fell 2.4 bps to 1.491%</li> <li>Brent futures up 0.8% to $62.69/bbl</li> <li>Gold spot up 0.3% to $1,280.53</li> <li>U.S. Dollar Index little changed at 94.08</li> </ul> <p><strong>Top Overnight News</strong></p> <ul> <li>U.K. Prime Minister Theresa May won the backing of ministers on both sides of her divided cabinet to offer the European Union more money to break the Brexit talks deadlock; Barring some major breakthrough, global banks will implement their relocation plans early next year to guarantee they’re able to have new offices inside the EU running by the time the U.K. exits</li> <li>German Chancellor Angela Merkel said she’s ready to face voters again to break the country’s political stalemate, betting they won’t blame her for failed talks on forming a coalition</li> <li>Germany: FDP chairman reaffirms rejection of four-party talks; SPD reiterates they will not be part of a grand coalition </li> <li>Putin held a surprise meeting with Syria’s Bashar al-Assad, kicking off a diplomatic drive this week to outline the terms of an end to the Middle Eastern country’s civil war; Putin will speak by phone with Trump later Tuesday, the Kremlin said</li> <li>The ECB is likely to make multiple small adjustments to its guidance on monetary policy next year rather than any major change in language as it ends quantitative easing, according to euro-area officials familiar with the thinking of policy makers</li> <li>BOE: Cunliffe says CPI will peak in 4Q 2017, it’s possible to wait before tightening; McCafferty says equilibrium unemployment rate may be below 4.5% </li> <li>RBA’s Lowe: no strong case for a near-term adjustment in policy, more likely that next move in rates will be higher; increasingly likely that inflation will be subdued for some time yet </li> <li>MNI: PBOC deleveraging campaign may ease somewhat in 2018; PBOC will continue to manage currency and capital controls for at least another decade, according to people familiar </li> <li>Turkey Central Bank: has decided to provide all funding from its late liquidity window effective Wednesday, which will raise the weighted average cost of funding by 25bps</li> <li>Nestle Is Said to Be Among Potential Hain Celestial Suitors</li> <li>AT&amp;T, U.S. Prepare to Battle in Court Over Time Warner Merger</li> <li>Cannabis Grower Aurora Plans to Go Hostile With CanniMed Bid</li> <li>ECB Is Said Likely to Take Small Steps in QE Exit Guidance</li> </ul> <p><strong>Asian equity markets were higher across the board </strong>as the region took the impetus from the positive close on Wall St, with Nikkei 225 (+0.9%) underpinned as exporters benefitted from JPY weakness. The benchmark Japanese index briefly broke above the 22,500 level as stocks coat-tailed on the rebound in USD/JPY, with Toshiba reprieved from yesterday’s slump to sit among the biggest gainers. ASX 200 (+0.3%) also traded with broad-based optimism across its sectors albeit to a lesser extent and Chinese markets completed the upbeat picture following another significant liquidity operation by the PBoC, with the Hang Seng (+1.5%) leading on continued gains in its largest weighted stock Tencent which recently became a member of the exclusive USD 500bln market-cap-club. Finally, 10yr JGBs were relatively flat throughout the session with demand subdued by the broad positive risk tone and a tepid longer-dated enhanced liquidity auction, although a mild uptick was seen in late trade as prices broke above 151.00. PBoC injected CNY 130bln in 7-day reverse repos, CNY 40bln in 14-day reverse repos and CNY 10bln in 63-day reverse repos. Net of maturities, the injection was only CNY 10bn however. PBoC also set the CNY mid-point weaker at 6.6356 vs Prev. 6.6271. Elsewhere, the Japanese Government to cut 30 and 40 year JGB supply in FY 2018/2019.</p> <p><em>Top Japanese News;</em></p> <ul> <li>Top Fund Backs Tencent to Drive Hong Kong Index Even Higher</li> <li>China H Shares Jump to Two-Year High as Financial Firms Rally</li> <li>Richest Asian Banker Sees Once-in-Lifetime India Opportunity</li> <li>Turkey Lifts Bank-Funding Costs as Lira Weakens to All-Time Low</li> </ul> <p><strong>European equities modestly higher this morning (Stoxx 600 +0.2%), </strong>with positive notes out from Goldman Sachs, who are overweight European automakers.&nbsp; Goldman said in a Europe strategy note that “deep value sectors” (autos, oil, and utilities) will help Stoxx Europe to return 12% in next 12 months. As a result, European automakers outperform led by VW for a second straight day, with the SXAP index advancing as much as 1.9%, best of 19 groups on the Stoxx Europe 600 benchmark (Volkswagen +3.8%, Porsche +2.7%, BMW +2%, Daimler +1.7%).&nbsp; Additionally, Imperial Brand shares rallied after their CEO change, as analysts speculate that this could increase the likelihood that the company will be taken over by Japan Tobacco. Airliner EasyJet is flying high this morning following strong financial results. Bunds are taking another look at 163.00+ levels having faded rallies above the big figure on several occasions recently. The bullish fundamentals and flow/positioning motives are well known and documented, but chart-wise market contacts note that support around 162.86 (rising trendline and Monday’s late Eurex base) held on the downside, prompting some intraday buying for a bounce to&nbsp; 163.06 resistance initially and then 163.16 (yesterday’s session peak) vs a high so far at 163.15. Beyond that, 163.22 needs to be breached to expose 163.40 and this month’s 163.63 peak. However, another retreat and failure to retain grasp of the 163.00 handle will bring 162.82 back into play as support (Monday’s actual intraday low), and on a break those short term longs not booking profit at 163.06 are expected to bail. Turning to Gilts, more upside also seen and a return to the 125-plus zone, at 125.29 for a 33 tick gain on the day vs 12 tick loss at one stage, before easing back slightly on larger than forecast UK PSNB shortfalls.</p> <p><em>Top European News</em></p> <ul> <li>Brexit-Hit Banks Said to Start Moving Staff Abroad in Early 2018</li> <li>Paris, Amsterdam Brexit Winners as Coin Toss Assigns EU Agencies</li> <li>May Prepares New Brexit Offer After Talks With Ministers</li> <li>U.K. Budget Deficit Widens as Inflation Boosts Debt Costs</li> <li>Uniper Tells Shareholders to Reject Fortum’s Takeover Offer</li> <li>EasyJet Reaping Benefit of Ryanair Retreat as Winter Prices Gain</li> </ul> <p><strong>In FX markets, </strong>price action has been relatively contained thus far. The USD index is firmer around the 94.000 handle in thin holiday-impacted trade, with the USD gaining ground vs most major counterparts on a generally more risk-on mood. EUR has been resilient in the face of Germany’s struggles to form a new Government and the threat of another election. EUR/USD continues to find support ahead of stops around 1.1720 and bids at 1.1700, with reported fixing demand in Asia propping the pair, but the 100 DMA around 1.1745-50 capping recovery gains. Elsewhere, AUD has rebounded from overnight lows post-RBA minutes, as Governor Lowe underlined that the next move in rates will be up, although the lead time to any tightening remains lengthy. Meanwhile, GBP was unreactive to the latest public borrowing data as markets look to see whether or not PM May will get the green-light for an enhanced divorce bill offer to the EU.</p> <p><strong>In commodities, </strong>WTI and Brent crude futures have continued to climb through the European session with energy related newsflow on the light-side as prices retrace some of the declines seen in the early stages of yesterday’s session. Energy markets are looking ahead to next week’s OPEC meeting, however, markets are firmly expecting an extension to existing production cuts in lieu of recent rhetoric from the cartel. In metals markets, gold only managed to nurse some of yesterday’s losses overnight as a broad positive risk tone kept safe-haven demand subdued. Copper maintained most of the prior session’s gains with prices supported by the risk appetite and amid gains in Chinese steel and iron ore prices on optimism for increased demand following the winter season.</p> <p><strong>Looking at the day ahead, </strong>central bank speakers will likely be the centre of attention again with Fed Chair Yellen due to speak in the evening as part of a series with former BoE governor Mervyn King, while the ECB’s Coeure chairs a panel in Frankfurt in the afternoon. Datawise, UK public sector net borrowing and CBI trends data for October and November are due, while in the US the Chicago Fed national activity index and existing home sales data for October is due.</p> <p><strong>US Event Calendar</strong></p> <ul> <li>8:30am: Chicago Fed Nat Activity Index, est. 0.2, prior 0.2</li> <li>10am: Existing Home Sales, est. 5.4m, prior 5.39m</li> <li>10am: Existing Home Sales MoM, est. 0.19%, prior 0.7%</li> <li>6pm: Fed’s Yellen Speaks at Stern Business School</li> </ul> <p><strong>DB's Jim Reid concludes the overnight wrap</strong></p> <p>There wasn't much contagion yesterday after the surprise collapse in German coalition talks late on Sunday night. Over the last couple of years negative market reaction to political shocks has often been over before you can digest it fully. Examples being the Greek and Brexit referendums and the Trump election results. Although the German coalition talks collapsing is much lower key than these events, it was still interesting that the DAX was only negative for 1 hour 16mins and that the Euro had snapped back into positive territory 37 minutes earlier even if it&nbsp; did soften again as the day progressed closing -0.49% against the dollar. The DAX closed +0.50% (high to low had been as much as +1.23%) and the Stoxx 600 +0.67% (range 0.91%).</p> <p>Overall it’s hard to see what the solution is to the gridlock in Germany but it’s also hard to see it being that negative for markets other than at the margin. Mrs Merkel yesterday effectively ruled out a minority government and the SPD continue to rule out a return to a Grand Coalition so unless talks can be reignited, a snap election early next year seems increasingly likely. As an outsider not as familiar with the German election process as many of my readers I can't help wondering how a fresh election will help much with recent polls seemingly not changing that much from the September 24th election. However, perhaps the campaigning would persuade enough voters to change their mind that the coalition math might be easier. Unlikely but possible.</p> <p>The good news from our economists in Germany is that the political system means there's no power vacuum and thus no time pressure to progress things. This probably helped prevent the market reacting too negatively yesterday although it can’t be too positive at the margin for Brexit talks and for fresh Macron/ Merkel European initiatives in the near-term. For more on the technicalities and options open now see the note "Coalition talks collapsed - unchartered territory ahead" from our German economists yesterday.</p> <p>Overnight, the Fed’s Yellen has confirmed that she will be stepping down from the Board of Governors once Mr Powell is sworn into the office. Her vacancy will give President Trump a fourth spot to fill in the new Fed, including the Vice Chairman spot. Elsewhere, Trump has redesignated North Korea as a state sponsor of terrorism and the Treasury department is&nbsp; expected to announce additional sanctions today. Notably, Secretary of State Tillerson “still hopes for diplomacy” with the State. We wonder whether North Korea will retaliate with some form of defiance after this so watch out for that. This morning in Asia, markets have followed the positive lead from the US. The Hang Seng (+1.30%), Nikkei (+0.93%), Kospi (+0.15%) and Shanghai Comp (+0.40%) are all up as we type.</p> <p>Turning to Brexit headlines, it seems that in addition to the stalemate on UK’s financial settlement to the EU, there are other unresolved issues before talks can move onto trade and a transition deal. Chief EU Brexit negotiator Barnier has noted that the Irish border will require a specific solution and it’s up to “those who wanted Brexit” to come up with those solutions.&nbsp; Elsewhere, he has warned “the legal consequence of Brexit is that the UK financial services providers lose their passport (rights to the EU bloc)”. Also press reports last night suggested that PM May has cabinet approval to double the settlement offer from the current EUR20bln.</p> <p>Moving onto central bankers’ commentaries now. The ECB’s Draghi reiterated that despite the sound economic recovery, “underlying inflation pressures are still subdued as labour market&nbsp; slack remains significant….(and that we) still need time to translate into dynamic wage growth”. On non-performing loans in the EU bloc, he cautioned that we need to “…work together to cope with this problem….but at the same time doesn’t create the destabilizing effects that people fear”. On Brexit, he noted it was difficult to properly analyse, mainly because “we don’t have yet a precise or even imprecise view of what the negotiating platform will be”. Notably, he said that the Brexit “transition can be managed in a smooth way…but it should be done without compromising over the integrity of the single market”, although “this is easier to be said than done”. </p> <p>Following on, BOE policy maker Mr Ramsden has warned that Brexit could put the economy in an “unusual” slow down for years. He noted “given the long horizon over which the effects of Brexit could play out, we’re likely to be on the flat part of the saucer for some time”. On his decision to dissent on the recent rate hike, he noted there may be more room for the economy to grow without price gains, noting “…one must pay close attention to any signs that above target inflation is feeding through to second-round effects in domestic costs…so far, that doesn’t seem to be the case”.</p> <p>Now recapping other markets performance from yesterday. US equities all strengthened, with both the S&amp;P and Nasdaq up c0.1% and Dow up 0.31%. Within the S&amp;P, telco (+0.97%) and financials stocks rebounded and led the gains, with partial offsets from health care and utilities names. European markets were all modestly higher despite the German political instability.&nbsp; Across the region, the Stoxx 600 (+0.67%), DAX (+0.50%) and CAC (+0.40%) rose modestly, while the FTSE 100 was the relative underperformer (+0.12%). The modest risk on bias was evident in volatility measures, with the VIX down for the third consecutive day (-6.8% to 10.65) while the VSTOXX also fell -7.05% after spending only 43 minutes higher at the open.</p> <p>Over in government bonds, core bond yields were mixed but little changed (UST 10y: +2.3bp; Bunds +0.2bp; Gilts -0.3bp), while peripherals outperformed with Italy and Spanish yields down 3-4bp. Elsewhere, the flattening across the Treasury curve has continued with the 5s30s curve c3bp flatter to 68.8bp, marking a fresh 10 year low.</p> <p>Turning to currencies, the US dollar index and Sterling gained 0.44% and 0.12% respectively, while Euro fell 0.49% following the aforementioned developments in Germany. In commodities, WTI oil dipped 0.58%, in part as investors await potential confirmation of production cuts in the upcoming OPEC meeting on 30th November. Elsewhere, precious metals weakened (Gold&nbsp; -1.20%;Silver -2.30%), with Gold down the most since late September, while other base metals were mixed (Copper +0.91%; Zinc -0.06%; Aluminium -1.44%).</p> <p>Away from the markets, DB’s China research team have published another note looking at China’s macro risks. They have noticed new signs of a tightening in fiscal and monetary policies over the past week. For example, on the fiscal front, the Ministry of Finance issued a document to tighten control over public private partnership projects. On monetary front, the&nbsp; government released draft guidelines on the asset management sector, which from a macro perspective could structurally constrain financial leverage and further tighten credit growth. Overall, the team believes these new measures are positive for China in the long term, but in the next 6 months they will likely cause the economy to slow. <br />Elsewhere the latest ECB holdings were released yesterday. Net CSPP</p> <p>purchases last week was €2.33bn and Net PSPP purchases €12.27bn. This left the CSPP/PSPP ratio at 19.0% last week (15.4% over the last 4 weeks vs. 11.5% before QE was trimmed in April 2017). Although we don’t think CSPP will be trimmed much after the January taper last week’s buying seemed anomalous in part as issuance was high over the period and the ECB may have taken advantage of this, particularly as the upcoming holiday season might bring liquidity challenges later on.</p> <p>Moving to the limited macro data releases from yesterday. In the US, the October Conference board leading index was above expectations at 1.2% mom (vs. 0.8% expected) and 5.2% yoy - the highest since May 2015. In Germany, the October PPI was in line at 0.3% mom and 2.7% yoy. In Japan, we saw a trade surplus of JPY323bn in October, which was modestly larger than expected. </p> <p>Looking at the day ahead, central bank speakers will likely be the centre of attention again with Fed Chair Yellen due to speak late in the evening as part of a series with former BoE governor Mervyn King, while the ECB’s Coeure chairs a panel in Frankfurt in the afternoon. Datawise, UK public sector net borrowing and CBI trends data for October and November are due, while in the US the Chicago Fed national activity index and existing home sales data for October is due.</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="700" height="394" alt="" src="" /> </div> </div> </div> 2s10s 2s10s 2s10s. ASX 200 Australian Dollar Bank of England Board of Governors BOE Bond Borrowing Costs Brexit Brexit negotiations Budget Deficit Business Chicago Fed Chicago Fed Nat Activity Chicago Fed national activity China Conference Board Copper CPI Crude Daimler DAX 30 Deutsche Börse Economy Economy of the European Union Equity Markets Europe European Central Bank European Central Bank European Union European Union European Union Eurozone Federal Reserve flash FTSE 100 German government Germany Gilts goldman sachs Goldman Sachs Grand Coalition Hang Seng 40 headlines Hong Kong India Italy Janet Yellen Japan Japanese government Jim Reid Mervyn King Ministry of Finance Monetary Policy Monetary policy NASDAQ Nikkei Nikkei 225 non-performing loans North Korea OPEC Organization of Petroleum-Exporting Countries People's Bank of China Porsche Precious Metals Price Action Quantitative Easing Quantitative easing recovery Reserve Bank of Australia S&P S&P 500 S&P/ASX 200 STOXX Stoxx 600 SXAP Time Warner Treasury Department Turkey Turkey Central Bank U.S. Treasury Unemployment US Dollar Index US Federal Reserve Volatility Volkswagen West Texas Withdrawal from the European Union Tue, 21 Nov 2017 12:05:00 +0000 Tyler Durden 607647 at Ignore Merkel And Brexit: According To Bill Blain, A New Threat Can Bring Europe Crashing Down <p><em>Blain's Morning Porridge, Submitted by Bill Blain of <a href="">Mint Partners</a></em><a href=""></a></p> <p><span style="text-decoration: underline;"><strong>Europe is like a 4D game of Jenga, and Germany is a very wobbly block - as are the banks</strong></span></p> <p>Europe is an enormous 4 dimensional game of Jenga.&nbsp; At the moment there are far too many blocks in play. Some of them are likely to leave the edifice teetering but standing. The question is: will any cause it to tumble? </p> <p><strong>Top of the wobbly blocks list is Merkel – what happens next in Germany? </strong>The CDU’s disastrous shift left has opened the door for the extreme right, and has fractured her own support. </p> <p>Merkel’s survivability is questionable. In her wake, all efforts to rejig Europe via closer union and monetary/fiscal harmonisation via banking union are absolutely on hold while the German constitutional crisis (yep, for that is what it is) plays out. </p> <p>Markets don’t seem particularly worried – they have become blasé about political risk and look to the upside of Germany’s apparent rosy and robust financial strength. What’s not to like about Germany?&nbsp; What can possibly go wrong – it regards the current Merkel issue as a short-medium term minor concern. Get over it. </p> <p>On a purely German basis they might be right. The critical thing for Europe is who follows Mutti?</p> <p>Merkel’s threats to call another vote rather than continue coalition talks looks like bluster – sounds like she’s trying to scare the opposition parties into a deal rather than go through the uncertainty of&nbsp; second election. If it comes to a second vote, it’s another miscalculation. </p> <p><strong>The question being asked yesterday was “who replaces her?” She’s been inordinately successful ensuring all upcoming potential political rivals were snuffed out, but one name I heard from two good sources is Jens Spahn. If you’ve never heard about him (and since he’s a German politician you probably haven’t), <a href="">this lays out where he’s coming from</a>. </strong></p> <p>Clearly I have no right to speculate on what happens in German politics when UK politics is such a mess. However, I am indebted to my colleague Steve Previs for pointing out the similarities between the UK and Germany. </p> <p>Spot the difference and who said what: “<strong>No deal is better than a bad deal” </strong>and “<strong>No coalition is better than a bad coalition”. </strong></p> <p><strong>Of course, Brexit is the second wobbly Jenga block. May is looking likely to up her divorce offer – which will further destabilise her own position but might force recalcitrant Europeans to notice. I doubt it. </strong>They are currently looking to the East.. not the West. Ahead of tomorrow’s UK budget, there is some interesting stuff in the papers about how European budget spending will have to be slashed post-Brexit. The pain will be felt across the European soft-underbelly!&nbsp; </p> <p><strong>But the wobbliest Jenga Block might remain the European financial system – and I don’t mean moving the EBA to Paris</strong>. (Good luck to them. After all, the French government would never ever be overly cosy with banks… would it..? </p> <p><strong>The latest wizard wheeze from the ECB is a real sweetie… according to a discussion paper published by the ECB last week on revision the Union’s crisis management framework; if a bank looks wobbly, then: “covered deposits and claims under investor compensation” should be replaced by “discretionary exemptions”. </strong></p> <p>Crashing minor chords.</p> <p><strong>The issue of German liability for the new European deposit insurance scheme (EDIS) was one of the issues that caused the coalition talks to fail: </strong>no Germans politician wants associated with policies that would mean paying the liabilities of Italian banks!&nbsp; </p> <p>It might be even more confusing. <strong>Has the ECB just turned the basis of finance on its topsy-turvy head - again? If you’ve been buying covered bonds issued by undercapitalised, over-NPL’d European banks – then worry</strong>. By putting “covered deposits” in the firing line, covered bonds lose secured status and look subject to the same bail-in **** and all the other uncertainty the ECB leaves in its wake. Pfanbriefe anyone? Suckers!&nbsp; </p> <p>And getting rid of depositor credit insurance? What a marvellous idea. It certainly fits with the European dream.. You know the one: how Europe would work much better if there just weren’t any pesky complaining citizens to worry about. Why not just Europeanise the whole European banking sector, take everyone’s money and give it to French farmers and Brussels Eurocrats? </p> <p>It would be much simpler.</p> <p>Of course it’s all about the Germans refusing to bail out feckless foreign types.. (Of course it is.. everything in Europe is about the Germans..) It’s a carrot and stick approach to solving the Italian bank conundrum – if they reduce NPLs, then the ECB will graciously bail depositors via the EDIS. Otherwise, the Germans aren’t going to give them access.&nbsp; </p> <p>The ECB knows best. (Which is to do what the Germans tell it to do…)</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="427" height="263" alt="" src="" /> </div> </div> </div> Aftermath of the United Kingdom European Union membership referendum Angela Merkel Banking union Brexit Europe European Central Bank European Central Bank European System of Central Banks European Union Eurozone Fail French government Germany Withdrawal from the European Union Tue, 21 Nov 2017 11:10:00 +0000 Tyler Durden 607646 at Millions Upon Millions of Americans Have “Negative” Wealth <p><a href=""><br /></a><a href=""></a></p> <h1><a href=""><span style="text-decoration: underline; color: #3366ff;"><em><strong>Millions Upon Millions of Americans Have “Negative” Wealth</strong></em></span></a></h1> <p><a href=""><span style="text-decoration: underline; color: #3366ff;"><em><strong>Posted with permission and written by Rory Hall, The Daily Coin</strong></em></span></a></p> <p>&nbsp;</p> <p>&nbsp;</p> <div class="post-thumbnail"> <img src="" alt="Millions Upon Millions of Americans Have “Negative” Wealth - Rory Hall" class="thumbnail" /> </div> <div class="mp-content std fix-me"></div> <div class="mp-content std fix-me"> <p>While <a href="" target="_blank" rel="noopener">3 Americans possess more wealth than 50% of the combined poorest</a>, we now learn that 20% of ALL Americans have zero or negative wealth. I presume by having “negative wealth” they have lived beyond their means for so long their debt burden is all they have to show for their life – very sad that people allow themselves to be put in that position. </p> <p>&nbsp;</p> <p>The wealth inequality in America is largely the function of the Federal Reserve system that operates through the U.S. Treasury. Without this mechanism of wealth transference the current wealth imbalance would not exist – it would be almost impossible to have the number of “millionaires”, “billionaires” that currently roam the earth. These people would still be wealthy, but their wealth wouldn’t be completely out of balance with the mass of people. </p> <p>&nbsp;</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> Millions of Americans are living on the edge. </p></blockquote> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> One in five households has zero or negative wealth, according to a report released this week by the Institute for Policy Studies, a progressive think tank based in Washington, D.C. What’s more, an even greater share of African-American (30%) and Latino (27%) households are “underwater” financially. The combined impact of <a href="" class="icon none">$1 trillion in credit-card debt</a>, <a href="" class="icon none">$1.4 trillion in student loan debt</a>, and stagnant wages are taking a toll. </p></blockquote> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> U.S. homes have regained value since the Great Recession, but many households have not. “Millions of American families struggle with zero or negative wealth, meaning they owe more than they own,” the report found. “This means that they have nothing to fall back on if an unexpected expense comes up like a broken down car or illness.” And inequality could get worse through new tax cuts for the wealthy. <a href="" target="_blank" rel="noopener">Source</a></p></blockquote> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p></p></blockquote> <p>The mainstream media, once again, plays their role in keeping people ignorant. Instead telling people the truth about <em>U.S. homes have regained value since the Great Recession</em> and calling it what it is – massive inflation on the edge of hyperinflation – it is played off as some type of benefit for the mass of people – it is not. It is a benefit for the top 0.01% only as they already own, outright, their land, their businesses and our land and businesses. If a person purchased a home 20 years ago for $50k and today that home would sell for $2mm where would that person be able to replace their home, in the same neighborhood, and realize that gain? It wouldn’t happen. This is not an increase in value; it is simply inflation. </p> <p>&nbsp;</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> President Trump’s tax proposals won’t give America’s middle class the reprieve they need to grow their wealth and recover from the financial crash, said Josh Hoxie, who heads up the Project on Opportunity and Taxation at the Institute for Policy Studies. A recent analysis by the <a href=";id=5029" target="_new" class="icon ">Joint Committee on Taxation</a> concluded that taxes would decline for all income groups, with the biggest percentage-point decline for millionaires. <a href="" target="_blank" rel="noopener">Source</a></p></blockquote> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p></p></blockquote> <p>The current tax proposals, like past tax proposals, are for the wealthy to further strip-mine the poor. Having 3 people with more wealth than 50% of the poorest is not good enough – we need to have 3 people with more wealth than 75% of the poorest – that’s progress!! </p> <p>&nbsp;</p> <p>On the other hand we see <a href="" target="_blank" rel="noopener">the other form of “hidden theft” – Inflation</a>. We are beginning to see the cracks in the economy become cavernous while inflation continues to rise chewing up any hope of savings the poor could possibly amass. It’s like a trifecta of wealth transference. </p> <p>&nbsp;</p> <p>With more pay-day-loan shops (loan sharks) popping up everyday, it seems the system is going to continue to exploit and strip the poor of whatever wealth they currently possess. As I stated at the beginning of this article, it is simply the Federal Reserve system doing exactly what it is was designed to do – shift the wealth of the many to the few and with the Federal Reserve Note past its peak and headed to the dustbin of history. The transfer of wealth, it seems, has adapted a particular sense of urgency. </p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p><em style="box-sizing: border-box; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: 20.3333px; line-height: 17.3333px; font-family: &quot;Lucida Grande&quot;, Verdana, sans-serif;">Questions or comments about this article? Leave your thoughts <a href=""><span style="text-decoration: underline;"><strong>HERE</strong></span></a>.</span></em></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <h1><a href=""><span style="text-decoration: underline; color: #3366ff;"><em><strong>Millions Upon Millions of Americans Have “Negative” Wealth</strong></em></span></a></h1> <p><a href=""><span style="text-decoration: underline; color: #3366ff;"><em><strong>Posted with permission and written by Rory Hall, The Daily Coin</strong></em></span></a></p></div> Business Distribution of wealth Economic inequality Economic inequality in the United States Economy Federal Reserve Great Recession Hyperinflation Inflation Institute for Policy Studies Joint Committee on Taxation Millionaire Recession Social inequality Structure Tax U.S. Treasury United States US Federal Reserve Washington D.C. Wealth World Tue, 21 Nov 2017 11:00:27 +0000 Sprott Money 607622 at