In the upcoming week markets will continue to focus on these fiscal issues in the US, now that a temporary Government shutdown past Tuesday is assured. Still on the fiscal side but outside the US, look forward to Prime Minister Abe announcing his final decision on the VAT hike as well as unveiling a widely anticipated economic stimulus package. Finally, fiscal policy also played a role in the Italian political instability with four ministers resigning from the coalition Government. The backdrop to these events is a rapid deterioration of the political climate after former PM Berlusconi was convicted of tax evasion by a High Court.
Back in August, just after the false flag chemical weapon attack in Syria, we showed that despite all the posturing by the Obama administration (and, of course, France's belligerent, socialist leader Francois Hollande), the nation behind the entire Syrian campaign was not one of the "democratic", Western nations but none other than close neighbor Saudi Arabia, and the brain orchestrating every move of the western puppets was one Bandar bin Sultan, the nation's influential intelligence chief. We also explained the plethora of geopolitical and mostly energy-related issues that Saudi and Qatar had at stake, which they were eager to launch a regional war over, just to promote their particular set of selfish interests. A month later, in clear confirmation that this was precisely the case, the WSJ reported that the recent overtures by Obama, brilliantly checkmated by Putin, to push for a peaceful resolution with not only Syria, but suddenly Iran as well, has managed to infuriate Saudi Arabia: traditionally one of the US' closest allies in the region and the key source of crude oil to the western world.
Italian bank holdings of Italian debt: €400 billion, an all time high. Oops.
I have never been fashionable enough to conjure up surely one of the silliest startup ideas with, bar none, the worst name of all time: Fashism. I only know of this site because I read about its demise yesterday. Evidently Ashton Kutcher (who, for reasons wholly alien to me, is heralded as some kind of tech-savant investing genius) put $1 million into this dog.
While it is not entirely accurate to blame the ignominious downfall of RIMM BlackBerry on current CEO Thorsten Heins, who only took over from Co-CEOs Mike Lazaridis and Jim Balsille in early 2012 at a time when the company's decline into irrelevance was already in progress, it is safe to say that the amount of stockholder value destruction under Heins' watch has been unprecedented. As such, one would imagine that the compensation for Heins is "equitable" to his value created for the company and its shareholders, i.e. zero. One would be wrong: as it turns out, and as Reuters reports, in the case of an "exit" event, such as the (faux) $4.7 billion LBO by FairFax Holdings at a price that is just shy of it decade (and longer) lows Heins will profit handsomely, and certainly make far more money than anyone who was long BBRY under his watch. Because the golden parachute that awaits the German, is valued at a whopping $55 million: an amount he will pocket no matter how said exit is achieved, and at what price (or rather cost) to shareholders.
‘Tapering’ may be put off indefinitely due to the very fragile state of the massively indebted U.S. economy. This means that interest rates must be kept low for as long as possible, leading to money printing and electronic money creation on a scale never before seen in history.
This will inevitably lead to higher gold prices - the question is when rather than if.
The last time the State Department issued a comparable worldwide terror alert, the majority of US embassies in the Muslim world were promptly evacuated and a few weeks later the Syrian false flag affair was unleashed upon the world. One wonders just what provocation John Kerry has in mind this time.
STATE DEPT ISSUES NEW WORLWIDE CAUTION ON TERRORIST THREATS; STATE DEPT DETAILS POSSIBLE THREATS IN EUROPE, ASIA, AFRICA
At least the evil terrorizers have not infiltrated the Arctic circle yet. As for the always convenient scapegoat:
STATE DEPT SAYS AL-QAEDA PLOTTING IN MULTIPLE REGIONS
They sure are: mostly in Syria, but luckily they are now armed with US weapons.
- Derivatives Broker 1: Make 6m go lower! They r going up. [Senior yen trader] will buy you a ferrari next yr if you move 3m up and no change 6m (February 29, 2008, via text message to personal mobile phone)
- Yen Desk Head: Lord Baliff, I would suggest a lunch over golden week. Monday or Tuesday if you are around. *** As for kick backs etc we can discuss that at lunch and I will speak to [Senior Yen Trader] about it next time he comes up for a chat.
Various Greek leaders have proclaimed the worst over for the desperately troubled nation. The basis for that optimism - a primary surplus - however is being brought into doubt by none other than the Troika (the overseer of the bailouts). As ekatherimini reports, the troika has doubts about Greek projections for a primary surplus this year and next and has begun the process of discussing with Athens the contents of the 2014 budget. Skeptical of Greek projections of a 1.5% of GDP primary surplus this year, it is also ironic that the Greek leaders themselves are downplaying the size of the surplus for fear that handouts will sour. All-in-all, it seems, Greek data (in light of the extreme unemployment) is anything but trustworthy - especially in light of further doubts over the effectiveness of the unified property tax.
China Beige Book Exposes Government Lies: "Conventional Wisdom Of Economic Expansion In China Seriously Flawed"Submitted by Tyler Durden on 09/25/2013 06:58 -0500
There are facts; then there are completely fabricated, made up numbers. And then there is Chinese "data." After having been exposed in the past several years countless times on these pages alone as being absolute manipulated propaganda hogwash, it is amazing that anyone, anywhere still believes anything to come out of the official Beijing mouthpiece, which merely adjusts a few variable cells in the big central planning goalseeking excel spreadsheet and reports the answer. Yet the recent myth of a China "rebound" is one of the factors why stocks recently hit fresh all time highs: forget all that stuff about a CNY1 trillion deleveraging (yes, China's credit bubble is still the biggest in the world) - all that matters is made up garbage. Well, it may be more difficult this time. As Bloomberg reports, a "Beige Book" survey of the Chinese economy conducted in late August showed that "China’s economy slowed this quarter as growth in manufacturing and transportation weakened in contrast with official signs of an expansion pickup, a private survey showed." Surprise: China was lying again.
When we pointed out AIG CEO Benmosche's somewhat disconnected-from-reality comments comparing banker-treatment to lynchings of black people in the deep south, we suspected there would be fallout. Sure enough, none other than Rep. Elijah Cummings (among the leading investigators into the 2008 excesses that led to AIG's bailout) has called for Benmosche to "resign his position as CEO immediately." Cummings stated: “As the leading critic of AIG’s lavish spending before and after its taxpayer funded bailout - and as the son of sharecroppers who actually experienced lynchings in their communities - I find it unbelievably appalling that Mr. Benmosche equates the violent repression of the African American people with congressional efforts to prevent the waste of taxpayer dollars..." We await the "...out of context..." retractions tomorrow...
When it comes to the "fairness doctrine", there was always some confusion in the matter of work ethic: how was it fair that some should work under the socialism-endorsed confines of a 29.5 hour workweek, while being forced to suffer the indignity and moral denigration of watching others labor under the faux guise of capitalism, putting in 60, 80, even 100 or more hours per week in the pursuit of self-actualization, contentment and general happiness? Furthermore, as has been well documented, despite rumors the contrary, the biggest incubator of neosocialism the "fairness doctrine" is not the US, nor Leningrad (sic), but France.... Sephora's flagship Champs Élysées cosmetics store, one which attracts six million people a year or nearly as many as the Eiffel Tower, has been ordered by a French appeals court to close at 9 pm at the latest because it "breached work-time regulations by hosting customers until midnight on weekdays and 1 am on weekends."
Back in October of 2012, Hugh Hendry proposed a very simple investment thesis: '"I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity. The risk premium goes up when the gold price goes up. Societies are more envious of your gold at $3000 than at $300. And there is no valuation argument that protects you against the risk of confiscation. And if you are bullish gold why don’t you buy gold ETFs, gold futures or gold bullion." Since then, anyone who listened to Hendry has made a substantial double digit return (yes, one can make double digits returns on gold even when gold is sliding: such is the "magic" of long gold, short GDX pair trades). However, following a massive, 50%+ selloff, there comes a time when even gold miner stocks become attractive to those with deep pockets filled with reserve fiat. For someone like China, that time may be now. The WSJ reports that China's largest gold company, China National Gold Group Corp., has talked to Ivanhoe Mines "about buying a stake in or asset from the company."
Finally the mainstream media is beginning to get the problems with the Federal Reserve.
"My daughter was raped and abducted," said a Mexican farmer. President Obama says, "What's different in America is it's easy to get your hands on a gun."