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The Endgame

There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become confused by policy failures, and privately, occasionally even downright pessimistic, at a loss to see a statist solution. It is hardly exaggerating to say there is a growing feeling of impending doom. In short, growing evidence of price inflation and stagnant production can be expected to materially increase the risk of a global banking and currency meltdown. The best escape-route is ownership of anything other than purely financial assets and fiat currency deposits. No wonder the price of gold, which is the soundest of moneys, appears to have entered a new bull market.

FBI Agents Busted For Planting Hidden Surveillance Microphones In Public Places

"Hidden microphones that are part of a clandestine government surveillance program that has been operating around the Bay Area has been exposed." If Congress wasn’t so busy being corrupt shills for the powerful it might do something to stop this. We're not holding our breath. Time and time again throughout U.S. history, you see the FBI working to undermine the public’s freedom in order to protect whatever racket their status quo masters happen to be running at the time.

Fed Worries About Deflation But Pays Banks Billions Not To Lend QE Proceeds!?

In a world in which growth is slowing, is it not strange that the Fed (privately owned by the largest banks in the world) would institute a system of rising payments rewarding banks for not taking risk or lending money!  This all tends to make believe that manipulation is the order of the day and the explanation is far simpler than most would believe...

How Hedge Funds Invest Heavily In Washington D.C.'s Culture Of Corruption

If you want to get a sense of what’s motivating Donald Trump and Bernie Sanders voters, it’s a desire to take people like Robert Shapiro, remove them from the halls of power, and toss them into a cardboard box on the street. Of course, that won’t be happening any time soon, but that’s what a lot of people want. As we detail below, confirmed recently by Congressman X, Washington is infested by the secretive world of the dark money groups representing mercenary hedge funds in their insatiable quest for more and more money. In many ways, it’s merely a microcosm of America in 2016. A culture in which ethics has become so irrelevant, it isn’t even a nuisance; it simply never factors into the equation.

California Tax Revenues Miss Projections By $1 Billion As Residents Flee The State

California's tax revenues came in $869 million less than forecast for the first four months of the year. Governor brown is now expected to cut some of the proposed spending increases in education, healthcare and infrastructure as a result of the miss. Many things were blamed for the shortfall, from slower than expected wage growth (there's a fix for that!), to lower capital gains taxes from a struggling market. While those were surely a factor, perhaps the biggest reason is the one that was also unmentioned: residents are fleeing the state in droves.

Satyajit Das Is "Astonished Investors Haven't Raised Pitchforks At Policy-Makers"

"They’re going to have to stop people from taking out cash... I would argue that it’s not going to be able to be dealt with, and it creates enormous social and political pressures… What we’re going to see is a period of financial repression, which is very, very dangerous... I honestly don’t know how it’s going to end. In the 1920s and 1930 when similar pressures built up, it didn’t actually have a very good ending."

Drug Prices Soar Most In The 21st Century

While the 1998 Viagra "spike" came and went, in recent years, pharmaceutical preparation, i.e., drug prices have been soaring higher with every passing year, and according to today's PPI report, at the wholesale level, drug prices in April surged by 9.6% over the past year, the biggest increase since 1982 when excluding the Viagra outlier, and certainly the most in the 21st century.

The Biggest Source Of Global Growth In 2016 Is About To Hit A Brick Wall

crash car testAfter issuing a record $1 trillion in combined bank and shadow loans in the first quarter which just like during the financial crisis provided a short-term catalyst for global growth (and sent China's debt/GDP to new all time highs) China's dramatic debt issuance binge is about to hit a brick wall. The reason: combined new loans in April by the Big Four state-owned banks were more than halved from March's level.

Nordstrom Plummets After Reporting Terrible Earnings, Slashing Guidance

The reason why the stock is getting monkeyhammered after hours is that the company slashed its guidance, and instead of seeing a 0-2% increase in comp sales, JWN now expects -1 to +1% for 2016. Worst of all is that instead of seeing EPS of $3.10-$3.35, Nordstrom slashed earnings guidance, and now expects only $2.50-$2.70 in EPS for the full year.

Major Court Ruling Against Obamacare, "Insurers Will Scream"

Healthcare insurers are already taking it on the chin. Some insurers got out of the healthcare business entirely, others stopped coverage in multiple states due to mounting losses. What happened is healthy individuals, especially millennials decided to opt out of Obamacare. Those who opted in after having been denied coverage previously were high-cost individuals. Adding fat to the fire, a federal court ruled today that “cost sharing reductions”  to insurers are unconstitutional payments.

Why Hedge Funds Have Rarely Been More Bearish: Highlights From The SALT Conference

Following last week's Sohn Conference, where the overarching theme was one of prevailing bearishness topped by Stanley Druckenmiller's near-apocalyptic forecast that only gold will be left standing after all confidence evaporates in the "magic people" known as central bankers,  yesterday some 1,800 hedge fund industry executives gathered in Las Vegas at the SkyBridge Alternatives Conference or SALT, where the prevalent concern about the future of the world continued, driven primarily by worries about China.

Regulators Want To Know What Goldman Was Doing In The Panama Papers Database

What investigators found from the recently published Panama Papers database and other leaked documents is that none other than Goldman Sachs and three other banks that are licensed by the state of New York had set up Panamanian shell companies. The other banks are BNP Paribas SA, Canadian Imperial Bank of Commerce and Standard Chartered Plc.