Want to hear the worst idea in the history of horrible ideas? How about we take the industry responsible for destroying the U.S. economy and wrecking the lives of tens of millions of people, and then allow it to create a “government-industry cyber war council.” It appears that trillions in taxpayer bailouts simply wasn’t enough for Wall Street. Noting that it can seemingly get whatever it wants whenever it wants, the industry is now positioning itself to overtly control U.S. “cyber” policy. What could go wrong?
Following the catalysts of broken down US-sponsored peace-talks and the teenager deaths on both sides Hamas (admitting its responsibility for the first time) unleashed more than 240 rockets into Israel in the past four weeks (including 100 since yesterday), Israel has drawn the line. As Bloomberg reports, Israel struck more than 90 targets in the Hamas-controlled Gaza strip from air and sea and PM Netanyahu suggested the option of a ground incursion was on the table. This is heaviest barrage since November 2012 and is set to worsen as Defense minister Ya'alon warned, this "will not end in just a few days," adding that Israel "is prepared to expand the campaign by every means at our disposal." In preparation for escalation, Israel has called up 40,000 reservists today as news hits that Tel Aviv airport has been closed due to shelling as "Operation Protective Edge" expands.
You know it has become a farce when...
As China's anti-corruption crackdown continues, the crony-capitalists are slowly exposed. As EJ Insight reports, the son-in-law of former PBOC governor and former Tianjin mayor Dai Xianglong bought millions of dollars of shares (via offshore entities) ahead of Beijing's decision to allow mainland residents buy Hong Kong stocks directly. It appears the Chinese have learned a lot from the West.
- Bond Anxiety in $1.6 Trillion Repo Market as Failures Soar (BBG), as reported first by Zero Hedge
- As Food Prices Rise, Fed Keeps a Watchful Eye (WSJ)
- Yellen’s Economy Echoes Arthur Burns More Than Greenspan (BBG)
- Draghi’s $1.4 Trillion Shot: Silver Bullet or Misfire? (BBG)
- Israel's Netanyahu phones father of murdered Palestinian teen (Reuters)
- Ukraine says forces will press forward after taking rebel stronghold (Reuters)
- Goldman Sachs Brings Forward Rate Forecast as Treasuries Drop (BBG)... you mean rise?
- Super typhoon takes aim at Japan (Reuters)
- Kidnapped Nigerian girls 'escape from Boko Haram abductors' (Independent)
- Merkel says U.S. spying allegations are serious (Reuters)
"He who controls the past controls the future. He who controls the present controls the past" - From George Orwell’s 1984. The reason Big Brother and his band of technocrat authoritarians spend so much time and effort erasing history in the classic novel 1984, is because they are a bunch of total criminals and they know it. Their grip on power is made so much easier if the proles are kept ignorant, confused and in the dark. This strategy is not just fiction, it is the philosophy of tyrants and authoritarians throughout history. While the internet is an amazing tool for communication and free speech, we must also be aware of how it can be abused by those in power who wish to whitewash history.
The reputation of bearish-biased research boutiques is set to soar following the latest fiasco involving Spanish mid-cap tech company Let's Gowex (GOW) which a week ago was the subject of a research report by Gotham City Research and its Twitter frontliner, @LongShortTrader. In the report, Gotham predicted that "Gowex shares are worth €0.00 per share." Its conclusion: "the shares will be suspended, just as Pescanova’s shares were suspended." Needless to say at the time Gowex vehemently denied the report saying all its allegations were false. Gotham was right and hours ago the CEO admitted the company which as recently as a week ago had a $2 billion market cap was nothing but a complete fraud.
Pro-Russian separatist forces have been forced to retreat from their stronghold in Slavyansk following "massive shelling" in the early morning from Ukraine's 'anti-terrorist' forces. Armored vehicles entered the city and the rebels, according to RT, decided to move back to their headquarters in Kramatorsk to 'prepare' in advance for further offensives. Just days after the cease-fire was lifted, newly-appointed Defense Minister Valery Heletey commented the "order to free Slaviansk from the (separatist) fighters has been carried out," but pro-Russian supporters are not done yet and exclaimed: "Pass on these words to Putin: the people of the Donbass believed him for some reason when he said he would help. But now they (government forces) are killing peaceful civilians and if that is not genocide I would like to know what is."
This week Americans will enjoy Independence Day with family cookouts and fireworks. Flags will be displayed in abundance. Sadly, however, what should be a celebration of the courage of those who risked so much to oppose tyranny will instead be turned into a celebration of government, not liberty. The mainstream media and opportunistic politicians have turned Independence Day into the opposite of what was intended. The idea of opposing - by force if necessary - a tyrannical government has been turned into a celebration of tyrannical government itself!
Same stuff... different country. Once again someone (former opposition leader Musallam al-Barrak) exposed the corruption among the elites (revealed documents that allegedly prove billions of illicit financial transfers were made to senior officials, including judges) and the leaders (Kuwait officials) decided he should be arrested and charged with slander. This has caused uproar among the people as hundreds of protesters rallied overnight in support of al-Barrack, marching from his house to the jail chanting: "The people want to cleanse the judiciary!" The police in the oil-rich nation of Kuwait used tear gas and stun grenades early Thursday to disperse the protesters. As we have noted previously, uprising against government corruption is a global trend and in the case of Kuwait (which is oil-rich, the last friendly place to US in the Middle East, and has the highest per capita Twitter usage on the planet), we suspect this 'spring' is far from over.
How to start World War 3? Step 1) Hack IDF Twitter account; Step 2) Tweet that Israel's secret nuclear facility has suffered a potential leak after shelling; Step 3) wait for US response... It appears (though for now has not been confirmed) that the Israel Defense Force's Twitter account was hacked by the Syrian Electronic Army who then tweeted "#WARNING: Possible nuclear leak in the region after 2 rockets hit Dimona nuclear facility" The Tweet was deleted soon after - not before all major newswires picked it up - and the report has been denied by the IDF. We can only imagine the market response to this tweet if US traders were not all out buying beers and burgers..
Not so happy 4th of July for residents and visitors of the Outer Banks. As Bloomberg reports, Arthur strengthened off the coast of North Carolina to become the first hurricane of the Atlantic season, packing maximum winds of 75 miles (120 kilometers) per hour. Officials have issued a mandatory evacuation order and a county-wide state of emergency has been declared.
- Obama Decries Big Bonuses at Bank Trading Desks as Risky (BBG)
- India central bank seeks to swap gold to improve reserves quality (Reuters)
- There goes Q3 GDP: Arthur Strengthens to Become First Atlantic Hurricane (BBG)
- Airports Serving U.S. Tighten Checks on Stealth-Bomb Threat (BBG)
- Fear, cash shortages hinder fight against Ebola outbreak (Reuters)
- Brent Declines as Libya Rebels Say Ports Are Open (BBG)
- Shiites Train for Battle in Iraqi Holy City (WSJ)
- Dimon’s Cancer Has 90% Cure Rate With Demanding Therapy (BBG)
- Goldman says client data leaked, wants Google to delete email (Reuters)
- ECB Watchers in the Dark Look to Draghi for Illumination (BBG)
Last week, Nick Hanauer explained how the pitchforks were out for him and his 'zillionaire' friends' he was right; but his 'solution' is far from correct..."If Hanauer really wants to test out his theory, I propose this to him: shed your billions of dollars and give the money directly to your employees. Drain your bank accounts and give the proceeds to the spend-happy middle class. If consumer demand truly grows the economy, then the profits will come roaring back. Hanauer is right that economic inequality can create resentment. But he doesn’t see the real culprit: a government that insists in meddling in the marketplace. His solutions don’t fix the problem; only exacerbate it."
- France's Sarkozy faces corruption probe in blow to comeback hopes (Reuters)
- Ukraine Says Military Offensive Against Rebels Yielding Results (WSJ)
- JPMorgan Investors Show Support for Dimon in Cancer Fight (BBG)
- World’s ATM Moves to Frankfurt as Yellen’s Fed Slows Cash (BBG)
- Argentina Seen Backtracking on Fernandez Vows as Legacy at Risk (BBG)
- Palestinian teen killed in possible revenge attack (Reuters)
- The Bill and Hillary Clinton Money Machine Taps Corporate Cash (WSJ)
- London House Prices Surge the Most Since 1987, Nationwide Says (BBG)
- Last Jew in Afghanistan faces ruin as kebabs fail to sell (Reuters)