The proof is clear. According to SWIFT, China’s renminbi is now the second most used currency in the world for global trade settlement, putting it ahead of even the euro. It’s happening. And based on the data, it’s completely obvious (as we continued to chronicle) to just about everyone but the US government. However, we were still surprised to see an article in the Financial Times’ banking intelligence subsidiary (‘The Banker’) entitled "The US’s dollar domination is coming to an end." This reality has become obvious to just about everyone... Reserve currencies come and go. So will the dollar. This is nothing new.
The Real History of the American Strategy for Iraq and the Middle East
On a revised basis, initial claims dropped 2k this week but marginally missed expectations at 312k. This is the 4th week in a row of marginal misses - none of which were large enough to get to excited about but it appears the limit has been reached in this cycle. Continuing claims rose for only the 2nd time in 10 weeks.
Obamacare, the Stimulus, TARP, Fast and Furious, support of the Egyptian regime change, Libyan Leading from Behind, four American killed in Benghazi, blaming a video for the Benghazi attacks, the IRA targeting, NSA email and phone file storage, Syrian Red Line, the Russian takeover of Crimea, the VA handling of veterans, release of Taliban terrorists from Guantanamo, the onslaught of children crossing the Mexican border, two years of lost emails of the key IRS individual and now Iraq. I can’t imagine any previous U.S. President having so many scandals attributed to his administration and virtually none of them adequately answered or resolved.
One can almost smell the CapEx renaissance.... Any minute now.
Now that Eric Cantor is history, crushed by an unexpected Tea Party "David" (literally and metaphorically) as the US population finally begins to say no to an artifical "two-party" system which is quite united in only serving its Wall Street masters, it is time for that other republican, none other than the consummate folding lawn chair John Boehner, to scramble fearing for his own political career. And since the only way the GOP knows to challenge the implosion of the US republic is by making loud noises and providing hours of hollow theatrical entertainment, here comes Boehner with the biggest soap opera he could muster: moments ago the speaker announced he plans to sue Obama "on behalf of the House over his frequent use of executive actions that Republicans believe are beyond his authority."
Putin Scores Another Historic Victory: Austria Signs South Stream Pipeline Deal In Defiance Of EuropeSubmitted by Tyler Durden on 06/25/2014 07:23 -0400
In the great chess-vs-checkers game, Putin just keeps steamrolling his clueless opposition.
What is really going on in Iraq?
Having learned last week that the world's central banks are their sovereign wealth proxies have secretly pumped over $29 trillion into markets in the last few years, it is not entirely surprising to hear from one of the largest - Norway $888 billion oil fund - that it is buying stocks with bond hands and feet. As The Financial Times reports, Yngve Slyngstad, chief executive of Norway's sovereign wealth fund, is hiring aggressively to manage its real estate portfolio and while the oil fund already owns 2.5% of every listed European company on average, it plans to go above 5%. Phew, bagholder found...
These Fake Rallies Will End In Tears: "If People Stop Believing In Central Banks, All Hell Will Break Loose"Submitted by Tyler Durden on 06/24/2014 15:11 -0400
Investors and speculators face some profound challenges today: How to deal with politicized markets, continuously “guided” by central bankers and regulators? In this environment it may ultimately pay to be a speculator rather than an investor. Speculators wait for opportunities to make money on price moves. They do not look for “income” or “yield” but for changes in prices, and some of the more interesting price swings may soon potentially come on the downside. They should know that their capital cannot be employed profitably at all times. They are happy (or should be happy) to sit on cash for a long while, and maybe let even some of the suckers’ rally pass them by. As Sir Michael at CQS said: "Maybe they [the central bankers] can keep control, but if people stop believing in them, all hell will break loose." We couldn't agree more.
While today's Case Shiller data was widely disappointing across the board, indicating a significant slowdown in price gains (and on a sequential seasonally adjusted basis, practically a decline), the one market we paid particular attention to was San Francisco. What we found is a red flag for everyone waiting to time the bursting of the latest housing bubble. Because after an unlucky 13 months of posting consecutive 20% Y/Y price gains, the San Francisco bubble appears to have finally burst, posting "just" an 18.2% price increase, the lowest since January of 2013.
The story of energy and the economy seems to be an obvious common sense one: some sources of energy are becoming scarce or overly polluting, so we need to develop new ones. The new ones may be more expensive, but the world will adapt. Prices will rise and people will learn to do more with less. Everything will work out in the end. It is only a matter of time and a little faith. In fact, the Financial Times published an article recently called “Looking Past the Death of Peak Oil” that pretty much followed this line of reasoning. However, energy common sense doesn’t work because the world is finite.
While the "mysterious, indiscriminate" buyer of US stocks has been fully unmasked now, what most likely do not know is that just this is happening at a comparable record pace nowhere else but the place which is mirroring and repeating every single Fed mistake tit for tit. Japan... “Share buybacks have the effect of supporting the market when it’s weak,” Daiwa Securities Group Inc. quantitative analyst Masahiro Suzuki wrote in a report on June 10.