Fresh Start

After Brexit: The System Cannot Hold

The overwhelming underlying principle that we see at work here is that centralization is dead, because the economy has perished. But that is something we can be sure no politician or bureaucrat or economist is willing to acknowledge. They’re all going to continue to claim that their specific theories and plans are capable of regenerating the growth the system depends on. Only to see them fail. It’s high time for something completely different, because we’re in a dead end street.

Beijing Orders Apple To Stop Sales Of iPhone 6 Models

Apple has been told by Beijing's intellectual property regulator to stop sales of the iPhone 6 and iPhone 6 Plus in the city. The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website

Valeant Shares Plunge Again After Company Slashes Guidance

The bad news for Valeant shareholders just keeps coming.  After repeatedly cutting its guidance in the past several months, earlier today VRX once again cut guidance dramatically, sending shares plunging by 10% in the premarket. In its just released Q1 results, which missed non-GAAP EPS expectations of $1.37 by 10 cents, the company took the knife to its latest set of full year 2016 projections.

China Is Now Conducting "Security Reviews" On Foreign Tech Products

"China must find a middle ground and determine which things can be imported but have to be secure and controllable; which things may be imported, digested and absorbed for re-innovation; which things can be developed in collaboration with others; and for which things we must rely on our own strength and indigenous innovation." - Xi Jinping

The End Is Near For Brazil's Ultra-Corrupt Government

"We could lose a decade of economic growth in three or four years," one official exclaims, "in other words, a decade of growth would be lost during Dilma’s mandate if she continues on as president." This recession, and concurrent high inflation, has been magnified by the biggest scandal in political memory...“It is considered common sense now that she will be impeached. Only a miracle can save her. All the factors are pushing that way."

Frontrunning: March 22

  • Brussels Rocked by Deadly Attacks With Blasts at Airport, Subway (BBG)
  • Death count climbs in Brussels blasts (Reuters)
  • Europe on High Alert After Blasts in Belgium (WSJ)
  • Brussels Phone Users Urged to Text Not Call as Networks Jammed (BBG)
  • U.S. Embassy Urges Citizens in Brussels to Shelter in Place (BBG)
  • Oil prices swept lower after Brussels blasts spook investors (Reuters)

"Investors Have Completely Lost Faith In Deutsche Bank" A Top 10 Shareholder Admits

After a day of "rock solid" Lehman-isms, emergency bond buyback plans, and a stock price still unable to close green, Deutsche Bank is on the ropes (despite CNBC proclaiming that "it doesn't feel like a Lehman moment.") However, as dawn breaks across the motherland, something more insidious is breaking for Germany's largest bank. Deutsche faces an uphill task rescuing its stock from record lows, especially, as Reuters reports, a top 10 shareholder exclaims "investors have completely lost faith in the bank," and a fast recovery from this crisis was unlikely.

Saudi Arabia Bans Flights, Travel To Iran

This morning, the headlines surrounding what's quickly mushroomed into a Mid-East melee are coming fast and furious and in the latest escalation, the Saudi foreign ministry says the kingdom will now cut all commercial ties with Iran.

How Socialism Destroyed Puerto Rico, And Why More Defaults Are Looming

With Puerto Rico missing a payment on a bond overnight "due to non-appropriation of funds" but denying that this constitutes anything close to a default, the territory may be about to retake the limelight as Greece is now "fixed." As Peter Schiff explains, this is far from over... As in Greece, the Puerto Rican economy has been destroyed by its participation in an unrealistic monetary system that it does not control and the failure of domestic politicians to confront their own insolvency. But the damage done to the Puerto Rican economy by the United States has been far more debilitating than whatever damage the European Union has inflicted on Greece. In fact, the lessons we should be learning in Puerto Rico, most notably how socialistic labor and tax policies can devastate an economy, should serve as a wake up call to those advocating prescribing the same for the mainland. 

The Financial Attack On Greece: Where Do We Go From Here?

Every nation has a right to defend itself against attack – financial attack just as overt military attack. That is an essential element in the principle of self-determination. Greece, Spain, Portugal, Italy and other debtor countries have been under the same mode of attack that was waged by the IMF and its austerity doctrine that bankrupted Latin America from the 1970s onward. International law needs to be updated to recognize that finance has become the modern-day mode of warfare. Its objectives are the same: acquisition of land, raw materials and monopolies. A byproduct of this warfare has been to make today’s financial network so dysfunctional that nations need a financial Clean Slate.

Why The BRICs Are Less Worried About The Next Crash

When even Jamie Dimon warns that "another crisis is coming", and points to the utter lack of market liquidity and the likelihood of another flash crash, it probably means that not only has he been reading this website, but that JPM's chief prop trading group, the Chief Investment Office, infamously long three years ago is already short and just waiting for the bottom to fall out of the market. One group, however, that is not be too worried about the next global financial crash - at least superficially - are the BRICs, because according to the Russian Prime Minister Dmitry Medvedev, "the creation of the BRICS reserve currencies pool worth $100 billion will allow member states to depend less on negative processes in the world economy and bypass market volatility."

"Odious Debt" Has Finally Arrived: Greece To Write Off "Illegal" Debt

It was back in June 2011 when we first hinted that the time of Odious Debt is rapidly approaching. Today, nearly four years later, Odious Debt is now a reality in Greece, where Zoi Konstantopoulou, the head of the Greek parliament and a SYRIZA member, released two videos which have promptly gone viral, designed to promote the investigative parliamentary committee to look into the circumstances surrounding the signing of the country’s two bailout agreements that led Greece to implement its austerity measures. According to Greek Reporter, Konstantopoulou has said that the newly established “Debt Truth Committee,” will investigate how much of the debt is “illegal” with a view to writing it off.