It has become exceedingly apparent that most Americans no longer think for themselves. Rather, most conversations in America today consist of an exchange of sound bites, phrases, ideas and talking points that the “matrix” has fed us. Most of us are just zombies that spend our days searching for the things that we are desperately craving. For fictional zombies, that usually consists of brains. For American zombies, that usually consists of something that will feed our addictions. Our society is breaking down in thousands of different ways, and we can see the evidence of this all around us.
Remember when evil North Korean hackers were blamed by everyone in the administration for penetrating the firewall of one of the wealthiest, most sophisticated, most secretive multi-national corporations in what now everyone realizes was an epic publicity, not to mention, punking stunt? Well, now that Kim Jong-Un has served his purpose, and the Interview has generated far more revenue than it would have otherwise (but not before North Korea got to troll the US, showing it too has lost all respect for the leader of the free world after it called Obama "A monkey in a tropical jungle") it is time to milk The Interview for some more propaganda talking points. And sure enough, here comes the Seattle-based cyber security firm Taia Global, which according to the NY Daily News as cited by the Mail has analyzed the "data" and concluded that not so Lil' Kim was right (the FBI was wrong) and it wasn't North Korea after all. So who was it? Why the evil Russians of course.
China may have mastered the art of fabricating economic data to a level unmatched by anyone except the US Department of Labor, but its derivative countries have much to learn. And none other more so than one of China's favorite sources of commodities over the past decade: Brazil. It is here that things are going from worse to catastrophic, as disclosed in today's update of Brazil's fiscal picture.
When Fearmongering Goes Bad: Greece Scrambles To Prevent Deposit Run Goldman Warned About In Its "Worst Case"Submitted by Tyler Durden on 12/29/2014 09:32 -0500
Recall that just over two weeks ago, none other than Greek currency swap expert Goldman (alongside Jean-Claude Juncker who quite explicitly warned Greeks not "to vote wrong") came out with a Fire and Brimstone worst-case scenario which was nothing but an attempt at fearmongering designed to scare Greek MPs into doing Samaras' bidding, in which it said not electing the designated presidential candidate may lead to a worst-case scenario which involves a "Cyprus-style prolonged bank holiday." Basically what Goldman said is that unless Greece quickly folds back in line and does as the unelected Brussels eurocrats demand, there will be a Cyprus-style bank closure coupled with preemptied bank runs. Well.... oops. Because if that was the doubled-down bluff, then Greece just called it, and the "downside scenario" is now in play.
And thus the utter craziness of monetarism is on full display, in that after arguing that declining oil prices are good for American consumers, they are also suggesting that monetary policy is “too tight”, and thus oil prices are contradictorily “too low.” That betrays the central aspect of this orthodox embracing of lower energy prices as nothing more than a shaky rationalization – they still are not comfortable with low prices but accept them lest anyone get worried about what they really suggest. Orthodox monetary theory is, when stripped of its academic trappings, dedicated to high oil prices and low wages.
With Greek CDS surging to near post-bailout highs (and short-end bond yields back above 11%), it appears the market is anxious of the endgame as tomorrow's 3rd and final 'snap-election'-saving vote looms. Following Samaras fearmongering yesterday, it appears Germany is starting to fear the worst (and play down its effect), as Merkel's bloc states "the prospect of a Greek sovereign default is no longer a concern for euro member countries and financial markets," adding "hope that Greece’s international partners would pay if the country’s policymakers refuse to carry out necessary reforms is misplaced." However, as Bruno de Landevoisin notes, "what is at stake is none other than the prosperity of the common man pitted against the privilege of concentrated power."
While North Korea had made it very clear that it had nothing to do with the Sony hack, it did demand a full UN-backed investigation, a proposal quickly shot down by none other than the US which always demands full "transparency" of all actions except when actions are its own, or when the resulting transparency would shine an unwanted light on the hypocrisy behind US national interests. Furthermore, in its first statements regarding The Interview, North Korea was actually quite cordial, and said nothing offensive regarding Obama. All that changed overnight when in its first official statement since its Internet went dark - something which if indeed North Korea did not hack Sony, as it claims, would be seen as a clear act of war if it were to happen to any other "developed" country - North Korea finally lost it and decided that the time to troll the US president has finally arrived, when, as the TV anchor says beginning 1:10 minutes in the clip blow, "Obama always goes reckless in speech and action like a monkey in a tropical jungle."
On the old continent, this December 29th, a succinct political showdown is scheduled to take place which may well become a defining moment for our entirely unsettled new millenium.
After two years of economic torture and financial destruction, Abenomics has finally claimed the Keynesian prize: real wages crash 4.3%, the most in the 21st century, and Japan's legendary savings rate, which peaked at 23% in 1975, just turned negative for the first time ever. Game over Japan.
All of this is political theater. The big story for the markets is not interest rates. It is the US Dollar.
Somehow news about Ebola in the US managed to get past the Ron Klain media gauntlet.
Best Description Of The Just Concluded 7 Year Auction: Plunging Directs, Soaring Indirects, Small TailSubmitted by Tyler Durden on 12/24/2014 11:45 -0500
There was some concern that in today's ultra thin tape, there may just not be enough demand (or volume) to absorb the $29 billion in 7 Year paper that was to be auctioned off at 11:30am. That wasn't exactly the case, and moments ago the Treasury sold, almost without a glitch, CUSIP G87 due December 31, 2021 at a high yield of 2.125%, which was a 0.5 bps tail to the 2.12% When Issued moments before the auction. Some of the more notable features of today's auction: the Bid to Cover was 2.388, the lowest since 2.36 in November 2013, and while Direct Bidder interest tumbled, and at 5.92% of the final takedown was the lowest since February of 2011, this was more than offset by the Indirects (read Japan's GPIF and comparables), whose take down of 56.5% was the highest since the 64.2% from December 2010, when the yield was 2.83%, or 70 bps wider than today's auction.
The system itself is completely corrupt and thoroughly rigged folks. What started as the totalitarian tiptoe has now turned into an extremely dangerous crony capitalist state.
No respite for the American oil patch and its investors.
- Christmas rally enters sixth day in Europe (Reuters)
- Downing North Korea's Internet not much of a scalp (Reuters)
- North Korean Internet Access Restored After Hours-Long Outage (BBG)
- At U.N. council, U.S. calls life in North Korea 'living nightmare' (Reuters)
- Ukraine Cuts Gold Reserve to Nine-Year Low as Russia Buys (BBG)
- De Blasio Seeks to Heal Rifts With Police After Officers Slain (BBG)
- Oil steady around $60 on hopes of strong U.S. data (Reuters) - so it fell below $60 because...
- Australian Dollar Hits Four and a Half Year Low on Chine Growth Worries (Reuters)