New York City
In terms of purchasing power, China now has the largest economy on the entire planet, but that is not the only area where China has surpassed the United States. China also accounts for more total global trade than the U.S. does, China consumes more energy than the U.S. does, and China now manufactures more goods than the U.S. does. In other words, the era of American economic dominance is rapidly ending.
Holding the line of America's political leaders with regard the risk of an Ebola outbreak in the US, NY Mayor Bill de Blasio explained today "there is no cause for alarm." However, in his next breath, as Bloomberg reports, he announced that America's most-populous US city is increasing vigilance against the Ebola virus by involving every agency that interacts with the public. De Blasio called the meeting after the death yesterday in Dallas of Thomas Eric Duncan, "to make sure that if anyone does present themselves with symptoms, we have a clear protocol on how to handle the situation." Meanwhile, New Jersey Governor Chris Christie told reporters today in Trenton, "we're not ready at airports yet but we will be."
From an alarming increase in government seizure of private property under the guise of eminent domain, to blatant disregard for the property rights of bondholders during bailouts, the US has plunged to #36 in the world in respecting property rights (from 9th in 2005). The decline of economic freedom in the US has destroyed opportunities, growth, and wealth creation along with it. Is this as bad as Argentina, Equatorial Guinea, or Venezuela? No. But it’s not about where you’re at. It’s about where you’re going. And the trajectory is clearly negative.
The meaning of events and market signals differ hugely from country to country, tribe to tribe, generation to generation. Ferguson does not mean the same thing as Hong Kong. Hong Kong does not mean the same thing as Tahrir Square or even Tiananmen Square. Monetary policy does not mean the same thing in Beijing as monetary policy means in Washington, which in turn does not mean the same thing as monetary policy in Paris or Rome. But we have an innate tendency to act as if these signals DO mean the same thing, and we can totally wrong-foot our investments as a result. The biggest thing happening in the world today is the growing divergence between US monetary policy and everyone else’s monetary policy with three HUGE implications: one for investment strategy selection, one for global growth, and one for … (gulp!) gold.
And now, for the best news of the day, we go to NPR which reports that Eric "Too Big To Prosecute" Holder is resigning. From NPR: "Eric Holder Jr., the nation's first black U.S. attorney general, is preparing to announce his resignation Thursday after a tumultuous tenure marked by civil rights advances, national security threats, reforms to the criminal justice system and five and a half years of fights with Republicans in Congress."
It has been several years since the disjointed, confused, and extremely disorganized Occupy Wall Street movement made any headlines. Alas, in the interim, the career prospects of those who comprise its up prime age demographic have gone nowhere but down while inversely impacting the nominal free time of said cohort, which is why we were somewhat surprised it took as long as it did for the same individuals, best known for camping out in Zucotti Park (until it started snowing of course), to stage a daring comeback. Which they did today, following a weekend in which New York City was overrun with "The People's Climate March", protesting against climate change by... leaving behind them tons of non-biodegradable garbage. It is this same group that has once again made its way all the way down into the Financial district, and specifically in front of the TV studio formerly known as the NYSE.
Of the stories in the past two days, there is hardly anything more bizarre than that of Omar J. Gonzalez, 42, of Copperas Cove, a veteran had served three tours in Iraq — and relatives said served as a sniper — managed to jump over the White House fence, sprinted more than 70 yards across the Northern Lawn, got to the front double doors of the North Portico, turned the brass knob and stepped inside the vestibule. "There he was grabbed and subdued by an officer standing post inside the door." He war carrying a folding knife with a serrated blade and was located just feet away from where Obama would have normally been, if only Obama had not just minutes ago taken the wife and kids for yet another weekend mini getaway.
In a move that is certain to further escalate already stretched racial tensions in America's most cosmopolitan city, some 100 New York City buses will soon carry jarring anti-Islamic posters which feature photos of an ISIS beheading victim, his alleged executioner, Adolf Hitler, declare "Yesterday's moderate [Muslim] is today's headline" and proclaim "It's not Islamophobia, it's Islamorealism" as part of an "educational campaign." According to the NY Daily News, the ads, paid for by flame-throwing blogger Pamela Geller, at a cost of $100,000, are intended as an “education campaign” to warn of the “problem with jihad” and Islamic sharia law, Geller said.
US imperialism was once a fearsome force - mainly for ill. Under the latter heading, Washington’s savage destruction of Vietnam four decades ago comes readily to mind. But now the American Imperium has become just a gong show on the Potomac - even as its weapons have gotten more lethal and its purposes more spurious and convoluted. There is no more conspicuous proof than Obama’s quixotic “war” on ISIS.
What has happened to America?
What will $1 million buy in New York City? A diamond-encrusted Cartier men’s watch. A small fleet of 2014 Bentley Continentals. Or maybe your very own parking spot in SoHo... "Parking is in serious demand and has proven an excellent investment with no sign of a decline."
- Euro left reeling after ECB's liquidity splurge (Reuters)
- Coalition Emerges to Battle Islamic State Militants (WSJ)
- Ukraine Gas Chief Takes on Gazprom in Race With Winter (BBG)
- Nato leaders fail to agree spending targets (FT)
- JPMorgan Had Exodus of Tech Talent Before Hacker Breach (BBG)
- Mercedes-Benz Sales Rise Despite Weak German Demand (WSJ)
- Secret Network Connects Harvard Money to Payday Loans (BBG)
- ICE looks to crack financial data market (FT)
"Get up! Get down! Fast-food workers run this town!" were the chants from fast-food workers in over 100 cities across America today, as empowered by President Obama's explanation of 'fairness', they demanded a $15-per-hour minimum wage amid strikes, rallies, and acts of civil disobedience. Many fast-food chains and independent restaurants have said that a $15 hourly wage would lead to big price increases on their menus or make it impossible to eke out a profit, adding that they "believe that any minimum wage increase should be implemented over time so that the impact on owners of small and medium-sized businesses." Police arrested 19 workers in NYC and several dozen were placed in handcuffs in Detroit and organizers strongly denied unconfirmed fast-food industry accusations that some workers were being paid $250 to $500 by the union to strike. While the economic reasoning for a minimum-wage hike has been dead-and-buried, we try one more time to explain the hidden costs of the minimum wage.
- Global stocks bounce on sign ECB could launch ABS program (Reuters)
- Putin unveils Ukraine ceasefire plan, France halts warship (Reuters)
- Poroshenko Flummoxes Investors With About-Face on Truce (BBG)
- No Free Lunch for Companies as IRS Weighs Meal Tax Rules (BBG)
- Turkey Struggles to Halt Islamic State 'Jihadist Highway' (WSJ)
- Lego Becomes World's Largest Toy Maker on Movie Success (WSJ)
- U.N. says $600 million needed to tackle Ebola as deaths top 1,900 (Reuters)
- Goldman Sachs Named 'Stabilization Agent' for Alibaba Stock Offering (WSJ)
Eric Cantor Sold For $3.4 Million: Former Head Republican Joins M&A Investment Bank As Vice ChairmanSubmitted by Tyler Durden on 09/02/2014 08:02 -0400
Back in June, when the political career of Eric Cantor came to a sudden, stunning end at the hands of an unknown "tea-partier", we commented that the biggest losers from Cantor's ignoble fall from Congressional grace were his biggest donors. Less than three months later, their loss is Cantor's gain, who after a long auction process has finally, and very expectedly, sold himself off to the highest bidder which as the WSJ reported overnight was none other than boutique M&A advisory firm, Moelis & Co. Per the WSJ, "Mr. Cantor, 51 years old, will be a vice chairman and board member at the firm, effective this week, he and Moelis founder Ken Moelis said in a joint interview on Monday.