"Back in 2008, in the midst of a crisis of global proportions, Ernst Stavro Paulson and the enigmatic Dr.Yes brought SPECTRE out of the shadows and into the collective conscious of the world. They did so by seemingly offering a cunning solution to the fears that gripped mankind in the wake of the GFC—free money!"
We like the fact that college students are angry enough to revolt against the massive debt being piled on their backs just because they want to get a college degree and a good job. They should be protesting because the expenses involved have gotten ridiculous. Then, if they do graduate, a great many of them can’t find employment. Too many are forced to remain living with their parents without a chance at the American Dream, which has now become just that - a dream. Unfortunately, too many of these young people are also upset about ridiculous things. They are part of a hypersensitive, hyper-politically correct group known as ‘Social Justice Warriors.’
Here's what's obvious, but unacceptable: we need a new system. Not a system modified with tiny tweaks and a feeding trough filled with borrowed money--an entirely new system designed from scratch to be sustainable and with opportunities to build capital for all.
"Clients are quick to point out similarities between the current low breadth environment and the narrow breadth regime that emerged during the tech bubble in the late 1990s. Our Breadth index currently equals 1, one of the lowest levels in the 30- year series. The typical episode lasted four months, with past episodes ranging from two months in 2007 to a high of 14 months during the tech bubble."
In a bipartisan bid to encourage commercial exploitation of outer space, the U.S. Senate this week unanimously passed the Space Act of 2015. The Extraterrestrial ‘Finders Keepers’ law allows US citizens and companies to legally claim ‘abiotic’ natural resources including water and minerals. However, the bill could be a direct affront to an international treaty that bars nations from owning property in space.
If there is one 'winner' from last night's terrible events in Paris, it is France's anti-EU, anti-immigration far-right wing Front Nationale party leader Marine Le Pen. Having already ascended to the lead in yet another poll ahead of France's 2017 elections, Le Pen came out swinging this morning call for France to "re-arm itself," stating that radical Islam must be "eradicated" from France. She further demanded that border controls be made "permanent" and binational Islamists must be depreived of their French passport.
Ignorance about recessions has taken hold because of a simplistic idea that a recession is two successive quarterly declines in GDP or, more broadly, a situation where we see some, but not all, of the typical markers of recession. While the final determination of recession might be delayed by a year of more, our leading indexes have never been this weak outside a recession. If this is indeed a recession, policy makers would be remiss in assuming that this is an economic slowdown rather than a recessionary vicious cycle.
When asked if ISIS was gaining in strength, President Obama rifled back, "I don't think they're gaining strength... what is true is that from the start, our goal has been first to contain and we have contained them."
Brutal news is pouring in from pretty much everywhere. The world, in short, is rolling over. Debt monetization on the scale so far attempted has failed to stop the implosion of tens of trillions of dollars of bad paper, growth has stalled and geopolitics has begun to turmoil. And none of this is a surprise. It’s just what you get when you put monetary printing presses in the hands of governments and/or big banks.
U.S. stock investors may be complacent regarding the ability of the stock market to withstand higher interest rates. Their confidence may come from the fact that, historically, markets have not peaked until 12-24 months after the Fed begins to tighten. This assumes the tightening cycle begins with the first official rate hike. But if it really began with the increase in the Shadow Rate, then a December rate hike will already be 19 months into the tightening cycle! Plus, given how overvalued stocks may currently be, and the amount of corporate debt accumulated to finance share buybacks, this bull market may be far more vulnerable than most to higher interest rates.
Earlier this week, the “independent” anti-doping commission WADA found that Russia engaged in state-sponsored doping and more importantly, recommended that Russia’s track and field athletes be suspended from Olympic competition in 2016. On Friday evening, that’s exactly what happened because as WSJ reports, “track and field’s world governing body provisionally suspended Russia’s athletes from international competition indefinitely."
Roughly 21 tonnes, or 685,652 troy ounces of gold in .999 fine kilo bars, was withdrawn, net of a small deposit of 27,328 ounces, from the Brinks warehouse in Hong Kong yesterday. To put that into some perspective, that is the same amount of all gold in the entire JPM warehouse in the US. The point of this is that the price discovery in New York is becoming increasingly distinct from the actual physical supply and demand flows of bullion which are taking place in Asia... And that is a potentially dangerous development, especially with respect to a commodity that is being traded at a leverage in excess of 200:1.
Pope Francis said "war is madness," just over a year ago while condemning the idea of war in God's name, and today, in a succinct but notably unforgiving and emotional statement, Francis reiterated his previous warning that a "piecemeal" World War III has already begun and, as he previously stated, the international community would be justified in using force to stop what he called "unjust aggression" by Islamic State militants.