The Trump threat isn’t to the Constitution, to America’s standing in the world, or even to Republican Congressional candidates, it is to the establishment. If you think Trump’s supporters are angry about the way the government and the business world colluded, you are right. The establishment fails to appreciate the anger. They’re just furious. Even if Trump fails to win, there will be more in the wings. He is inspiring a change and he doesn’t even understand how profound.
If there was still any doubt whether the Trump juggernaut can be stopped before, if not so much after the Michigan primary earlier this week, it can be laid to rest now because shortly after Trump received the endorsement of Chris Christie, the real estate mogul has now secured his second highest profile backing, that of Ben Carson who according to the Washington Post will endorse Trump officially on Friday morning.
“Some might wonder to what extent Gulf Arab financing has continued to subsidise the caliphate. Certainly, IS was able to draw on some other sources of income between January 2015, when Raqqa’s economy had reportedly collapsed, and mid-January 2016, when IS forces have been able to launch a major new Syrian offensive. The money is coming from somewhere.”
While admitting he shares some blame for the widening partisan divide during his term in office, President Obama dismissed the notion that he's responsible for the rise of Donald Trump, who has harnessed voter anger during his presidential run, urging GOP elites to do some "introspection" about the how "the politics they've engaged in allows the circus we've been seeing to transpire."
We’re repeating the same crazy thing that nearly brought down the system back in 2008 - paying people to borrow money. The primary difference is that, this time around, the bubble is much bigger. Back then, the subprime bubble was “only” $1.3 trillion. Today, conservative estimates show that there’s over $7 trillion in negative rate bonds. What could possibly go wrong?
The last time that global liquidity conditions contracted at this pace was March 2008 (right as stocks dead-cat-bounced on the back of The Fed's guarantee of Bear Stearns' sale to JPMorgan)... and things escalated rather quickly thereafter.
Of course, if things were as good economically as we are told by Wall Street and the mainstream media, would the ECB really be needing to drop further into negative interest rate territory and boost QE? By fully committing to hiking interest rates, and promoting the economic recovery meme, changing direction now would lead to a loss of confidence and a more dramatic swoon in the financial markets. Such an event would create the very recession they are trying to avoid.
China has been an unofficial price-setter for most metals over the past decade. And this week, the country became an official participant in setting prices for one of the world’s most important precious metals markets. That’s the London Bullion Market silver price. Where one of China’s largest banks just became a member of an elite group of players that controls fluctuations in this key metal.
"My Bullish tactical call is over. While we have repeatedly highlighted 2030 as our upside target, the rapid post ECB reversals in the cross asset technicals dictates that we abandon our tactical view at this time in favor of a far more defensive posture. Our structural Bear Market call with downside to 1,670 remains intact. We would sell Global Equities and Commodity Currencies on the back of recent countertrend strength and buy Gold."
And so things are back to normal: following yesterday's unexpectedly poor 10 Year auction, which tailed notably while the bid to cover dipped despite it trading at the -3.00% fails rate in repo, moments ago the Treasury sold $12 billion in a 30Y reopening of Cusip RQ3, at a yield of 2.72%, stopping through the 2.731% When Issued by 1.1 bps, the most since mid-2015.
As Donald Trump speeds toward the White House, the mainstream media will soon be gumming vigorously about how American politics became so unhinged. They need look no further than the Red Suzerains of Beijing. It is their monumental foolishness that has made The Donald possible.
In the geopolitical and oligopolistic global oil market, purely financial supply and demand has often been a secondary force, acting when it is allowed to act. It is the strategic behavior of the producing titans, not their talk or the slow-motion supply-demand balance, which has the real power to move markets. That is the case in the last two years and remains the case in 2016.
"Everyone is offside," exclaimed one trader we talked to, noting the swings in EURUSD and stocks have tagged stops everywhere. Dow futures are now down 300 points from Draghi highs with S&P futures breaking below the crucial 1980 trendline support. As the trader concluded, "it's a bloodbath."