"...policymaking is dominated by powerful business organizations and a small number of affluent Americans, then America’s claims to being a democratic society are seriously threatened...
...even when 80% of the population favored a particular public policy change, it was only instituted 43% of the time."
The majority of global growth in the next decade will instead be generated by "frontier markets". in fact, over the past five years, 43 of the 47 highest-growth economies have come from the frontier.
As we reported last night, whether as a result of Snowden revelations and NSA blowback by BRIC nations, or simply because the global economy is contracting far faster than rigged and manipulated markets worldwide will admit, IBM's Q1 revenues not only missed consensus earnings, but dropped to their lowest level since 2009. And yet, IBM stock is just shy off its all time highs and earnings per share have been flat if not rising during this period, leading even such acclaimed investors who never invest in tech companies as Warren Buffett to give IBM the seal of approval. How is that possible? Simple: all that investment grade companies like IBM have done in the New Normal in order to preserve the illusion of growth, is to use cash from operations, or incremental zero-cost leverage, to fund stock buybacks. In essence a balance sheet for income statement tradeoff. However, that "great stock buyback gimmick" as we call it, is finally coming to an end.
Krugman: "There's zero evidence that the kind of extreme inequality that we have is good for economic growth. In fact, there's a lot of evidence that it is actually bad for economic growth. Nobody wants us to become Cuba." Ah yes, inequality, the same inequality that the Fed - Krugman's favorite monetary stimulus machine - has been creating at an unprecedented pace since it launched QE. Just recall: "The "Massive Gift" That Keeps On Giving: How QE Boosted Inequality To Levels Surpassing The Great Depression." So while Krugman is right in lamenting the record surge in class divide between the 1% haves and the 99% have nots, you certainly won't find him touching with a ten foot pole the root cause of America's current surge in inequality. And, tangentially, another thing you won't find him touching, is yesterday's revelation by Gawker that the Nobel laureate is the proud recipient of $25,000 per month from CUNY to... study inequality.
While the western media paints Vladmir Putin as some cross between Napoleon and Hitler marauding across Europe breaking international laws willy-nilly, there is one red line he is apparently unwilling to cross. In a somewhat surprising turn of events, none other than Edward Snowden called in to a Putin live telethon and asked the Russian President: "Does Russia intercept millions of citizens’ data?" Putin's response (whether true or not) is worth paying attention to by his opponent on the world stage: "Russia uses surveillance techniques for spying on individuals only with the sanction of a court order. This is our law, and therefore there is no mass surveillance in our country."
Initial jobless claims rose very modestly from last week's near 7-year lows but handily beat expectations with the 4-week average at its lowest since September 2007. Of course, as Yellen explained yesterday, none of this matters as if one indicator of jobs improvement gets too strong to enable more easy money, we simply flip to another that indicates a different worse (more real) reality. Continuing Claims also dropped (beating expectations) to uits lowest since Dec 2007 (as if the whole crisis never happened).
Despite Janet Yellen's meet-and-greet with the unemployed and criminal classes, the absence of Ben Bernanke has seemingly empowered several Fed heads to be just a little too frank and honest about their views. The uncomfortable truthsayer this time is none other than Dallas Fed's Fisher:
*FISHER SAYS FED POLICIES HAVE MADE THE RICH 'MUCH RICHER' (but...)
*FISHER: UNCLEAR IF FED POLICIES WILL BENEFIT THE MIDDLE-CLASS
We wonder how President Obama, that crusader for fairness, equality and all time Russell 2000 highs, will feel about that? In the meantime, just like the Herp, QE is the gift that keeps on giving.. and giving... and giving... to the 0.001%.
First we deny, then we deny we ever denied, and then we forget we were ever in denial. Man is an extremely efficient organic computing machine, so this is just kid’s stuff we learn right out of the crib.
Finds the answer is: "very"
We realize the future for blogging was bright, but this bright? Moments ago, Bloomberg View, Bloomberg's in house blogging operation, announced that El-Erian had joined it as a columnist. And just like that Mohamed has his own unedited venue in which to spill all the dirt on his former employer.
Just a few weeks ago, someone (allegedly Russia) leaked a recorded phone conversation of Victoria Nuland commenting "fuck the EU" and how she (the US) wanted the political stage set in Ukraine. A lot has happened since then but as multiple pro-Russian sources have now 'confirmed', the new puppetmaster appears to be in town (or was). As Interfax reported, citing sources inside the Ukrainian parliament, none other that CIA Director John Brennan landed in Ukraine on Saturday under an assumed name and held a "series of secret meetings" with the country's "power bloc" Interfax reported. Commenting on the report, deputy chairman for the State Duma's Defense Committee Frants Klintsevich said that he would view such a visit as a challenge to Russia.
Churkin: "In just a few hours things may take an irreversible turn for the worse"
Today's emergency session in the UN summoned by none other than Russia, whose representative Churkin has just started to speak, has begun.
*WEST, KIEV 'HENCHMEN' GOVT RESPONSIBLE FOR INSTABILITY: CHURKIN
*RUSSIA 'SPREADING FICTION, WE MUST STOP THIS TONIGHT,': POWER
The live webcast below.
"Just after the United States entered World War II, two simultaneous initiatives unfolded that would dictate elements of financing after the war, through the joint initiatives of foreign policy measures and private banking whims. Plans were already being formulated to navigate the postwar peace, especially its international power implications for finance and politics, in the background. American political leaders and scholars began considering the concept of “one world” from an economic perspective, void of divisions and imbalances. Or so the theory went. The original plans to create a set of multinational entities that would finance one-world reconstruction and development (and ostensibly balance the world’s various economies) were conceived by two academics: John Maynard Keynes, an adviser for the British Treasury, and Harry Dexter White, an economist in the Division of Monetary Research of the US Treasury under Treasury Secretary Henry Morgenthau."
Despite popular belief, every culture of every nation draws a line in the sand against government tyranny. The problem is, many draw this line so close to total defeat that it rarely matters.
The evil of modern central banking can nowhere better be seen than in this week’s mad stampede into $4 billion of Greek bonds. The fact is, Greece is not credit-worthy at nearly any coupon yield, but most certainly not at the 4.75% sticker that was attached to the offering. And the claim that Greece’s fiscal affairs have turned for the better is really preposterous. But none of this matters, of course, because the howling pack of money managers who scooped up the Greek debt at an oversubscribed rate of 5X were not pricing the non-credit of the former Greek state, but the promises of Mario Draghi. The very worst evil of monetary central planning is that it enables clueless politicians to believe in their own fiscal fairy tales, and to persist in the ritual can-kicking that is the scourge of central bank intoxicated politicians everywhere. In the context of its shattered economy, the Greek budget is a house of cards. Still, its current leaders, whose tenure is precarious by the day, get their turn in the spotlight to issue utterly specious pettifoggery...