Germany

Raoul Pal: Business Cycle Tinder For A Global Banking System Fire

"...after every single two-term presidential election (i.e. when the incumbent changes) and there is a 100% track record of a recession within the next 12 months. It either starts just beforehand or starts afterward, but within 12 months there is a 100% chance of a recession... Even if they do raise rates, the yield curve will flatten like crazy... I think the Fed is almost an irrelevance at this point."

Fooled Again

The naive hopes of Bernie Sanders’ supporters - to build a grass-roots political movement, change the Democratic Party from within and push Hillary Clinton to the left - have failed. The multibillion-dollar extravaganza of our electoral Circus Maximus is part of the smokescreen that covers the ongoing devastation of globalization, deindustrialization, trade deals such as the Trans-Pacific Partnership, endless war, climate change and the intrusion into every corner of our lives by the security and surveillance state. Our democracy is dead.

Why The EU Is Doomed

We are accustomed to looking at Europe’s woes in a purely financial context. This is a mistake, because it misses the real reasons why the EU will fail and not survive the next financial crisis. We normally survive financial crises, thanks to the successful actions of central banks as lenders of last resort. However, the origins and construction of both the the euro and the EU itself could ensure the next financial crisis commences in the coming months, and will exceed the capabilities of the ECB to save the system.

The Existential Madness Of Putin-Bashing

Official Washington loves its Putin-bashing but demonizing the Russian leader stops a rational debate about U.S.-Russia relations and pushes the two nuclear powers toward an existential brink.

Merkel Says Europe Is In "Critical Situation"

"We need solutions for Europe and we are in a critical situation," Merkel said as she arrived at the gathering. "You can't solve all Europe's problems in one summit. What we have to do is show in our deeds we can do things better in the realms of security and fighting terrorism, and in the field of defense."

Deutsche Bonds "Dropping Like A Stone" As 'Most Dangerous Bank In The World' Plummets

"They are dropping like a stone," warns one European credit strategist as signals from the bottom of Deutsche Bank's capital structure signal a "huge increase in the potential for a coupon skip." With DB stock tumbling towards record lows again (EUR 11 handle), Bloomberg reports, the bank’s 1.75 billion euros ($2 billion) of 6% additional Tier 1 bonds, the first notes to take losses in a crisis, are crashing... as the world's most systemically dangerous bank faces existential problems once again.

European, Japanese Bankers Threaten Mutiny Over Basel Committee's Capital Rules

European and Japanese banking officials are reportedly enraged that the (US-backed) world's top banking regulator would dare to demand banks hold higher levels of capital to meet credit, market and operational risks. These rules are not new, of course, but the bankers, used to getting their own way reportedly demanded in two heated meetings this week that The Basel Committee 'scale back; the rules to ensure the rules have no “particularly negative consequences for specific regions,” such as Europe.

Taper Tantrum II: "There's No Simple, Painless Solution"

It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.

European Leaders Discuss Plan For European Army

"We are going to move towards an EU army much faster than people believe." But the creation of a European army, a long-held goal of European federalists, would entail an unprecedented transfer of sovereignty from European nation states to unelected bureaucrats in Brussels, the de facto capital of the EU.