The Truth is Not a Choice

Don't Abort the Constitution

8(29-30)15 Gleaning Now The Turning Prophetic Stone Upon Ten Toes

The Shemitah is About to End 

Expect Even Greater Fireworks In September And October

In the process they have been drawing down their foreign exchange reserves by $400 billion. At the same time the Chinese have been dumping U.S. Treasuries. This has put pressure on yields. The market reaction this week has been to experience enormous destabilizing volatility, and this should lead to even greater fireworks as the markets head into September and October.

This Global Collapse Will Be Unlike Anything In Recorded History

FISHY FULL MOON: According to folklore, this weekend’s full Moon is the Sturgeon Moon, named by Native American tribes of the Great Lakes who caught lots of sturgeon during the month of August. A Moon named after an ancient slimy fish? Go outside and take a look. It’s prettier than it sounds. [photo gallery]

http://www.spaceweather.com

SIMMERING GEOMAGNETIC STORM: For the third day in a row, Earth’s magnetic field is simmering with G1-class geomagnetic storms. The drawn-out event has ignited some of the first visible auroras in months around the Arctic Circle. Just hours ago, Jaromir Stanczyk witnessed this display over Iceland:

George Russell of Fox News broke the story of how a branch of media giant Thomson Reuters and the United Nations Foundation are training journalists and paying for stories to “popularize” the U.N.-sponsored Sustainable Development Goals and make them attractive to news consumers.

The Sustainable Development Goals (SDGs) are outlined in the U.N. report, “Transforming our world: the 2030 Agenda for Sustainable Development,” a manifesto to be adopted by the nations meeting at the United Nations Headquarters in New York from September 25 to 27, as the global organization celebrates its 70th anniversary.

The SDGs, such as “End poverty in all its forms everywhere,” sound positive. However, in reality, the concept of “sustainable development” is a Marxist scheme that researcher Michael Hichborn of the Lepanto Institute calls “a United Nations plan for the creation of a global socialist utopia thinly disguised as a poverty reduction program.”

Thomson-Reuters says, “The intensive training program aims to provide professionals from 33 countries with information, tools and strategies to understand the complex issues surrounding the next set of UN global development goals. The program will enable reporters, editors and spokespeople to better understand, report and communicate around some of the issues related to two crucial upcoming UN conferences: the UN Summit in New York in September that will see the adoption of the new Global Goals, and the UN Climate Change Conference in December in Paris, which is aimed at reaching a universal climate agreement.”

Marta Machado, who’s in charge of the Thomson-Reuters initiative, has worked for the Antichrist Muslim Brotherhood channel, Al Jazeera, and CNN.

The United Nations Foundation, started by CNN founder Ted Turner, claims the effort is designed to “increase, enhance and influence global communications and media reporting” on the campaign.

However, in a press release that carried the subheadline, “Why communications matter in 2015,” the United Nations Foundation said the campaign will include media training, financial grants and “a sustained surge in targeted digital media,” designed to “help increase the volume and animate a global public conversation about the new goals, creating the environment to help us achieve success by 2030” (emphasis added).

Hence, the coverage will be slanted in favor of the United Nations.

Paying the Media for Pro-U.N. Coverage

Another “partner” in the global media campaign on behalf of the U.N. is the Jynwel Foundation, described as the philanthropic initiative of Jynwel Capital, an international investment and advisory firm based in Hong Kong.

As this campaign unfolds, it is a virtual certainty that the real purpose of the SDGs—to punish Americans and other “rich” people—will be carefully concealed.

As amazing as it seems, a report on foreign aid from the World Bank and the International Monetary Fund (IMF) is actually titled, “From Billions to Trillions: Transforming Development Finance.” A United Nations General Assembly report, dated August 14, 2015, calls for “several trillion dollars per year” to be spent to implement “sustainable development” on a global level.

But don’t call it theft; call it “sharing.” Indeed, a report titled, “Financing the Global Sharing Economy,” proposes global taxes on financial transactions, energy and other measures to bring in over $2.8 trillion. The founder of Share the World’s Resources (STWR), Mohammed Mesbahi, has outlined a “strategy for world transformation” that condemns “the materialistic and self-seeking idea of the American Dream.”

In order to acquire these resources, new taxes on the national and global level are being pushed in the name of stabilizing the stock market.

After the Dow Jones Industrial Average plummeted more than 1,000 points at the open on Monday, the “progressives” in favor of financial transaction taxes went into action. James Henry, senior fellow at the Columbia University Center for Sustainable International Investment, was quoted as saying the stock turbulence is “a great example of why we need a Financial Transaction Tax,” a proposal that he says would raise hundreds of billions of dollars.

Almost on cue, socialist Senator Bernie Sanders (I-VT) endorsed the idea. Sanders, who backs a 90 percent top marginal tax rate, says his proposed financial transaction tax will reduce “risky and unproductive high-speed trading and other forms of Wall Street speculation…” In order to make it attractive, he says the proceeds “would be used to provide debt-free public college education.”

Jared Bernstein, the economic adviser to Vice President Joseph R. Biden Jr. from 2009 to 2011, says in a New York Times column that Sanders is right. “A financial transaction tax is a smart, fair way to raise urgently needed revenues while reducing unnecessary trading that makes our markets more volatile,” he wrote.

The council of the Socialist International convened on July 6 and 7 at the United Nations Headquarters in New York, and endorsed the Millennium Development Goals and the “post-2015 development agenda.”

Sanders is reported to be a member of the Democratic Socialists of America, the U.S. affiliate of the SI.

Such a tax could be applied on a global basis as well. Steven Solomon, a former staff reporter at Forbes, says in his book, The Confidence Game, that a global financial transactions tax “might net some $13 trillion a year…”

Calls for global taxes and more foreign aid are not new. The difference this time around is that the Vatican has endorsed the SDGs. Archbishop Bernardito Auza, Apostolic Nuncio and Permanent Observer of the Holy See to the United Nations, gave a formal statement to the world body endorsing the “sustainable development” agenda.

Pope Francis will formally address the United Nations General Assembly in New York City on Thursday, September 25.

THE YEAR of SATAN 

“The first speaker, Dr. Amen, made reference to the Egyptian pyramids and how they were built upon an “idea,” and if man could build something like that all those thousands of years ago, what could he do today if he put his mind to it? I found that to be somewhat disturbing, as the pyramids, no matter how impressive they are, represent the ancient pagan religions which got their start in Babylon when Nimrod gathered men (the community) together to commit idolatry by building a tower to honor themselves as gods (Gen. Ch. 11). And yet here it was, the analogy that was chosen to illustrate this new “idea” Saddleback would launch for their 52 week program.

I’d like to state that Saturday Jan. 15th, 2011 will go down in the history books as the day Saddleback Church “sheep” were sold a bill of goods. The masses had come out in droves for answers to their weight loss difficulties & health problems, but unbeknownst to them, they were being given a prescription for restructuring society & population control – better known as “Agenda 21”/Sustainable Development” or “Smart Growth”.

The US is playing games with public trust by passing different versions of the same intrusive surveillance system, a modern day Panopticon. Any alleged changes to the bulk collection program are purely cosmetic, according to ex-MI5 agent Annie Machon.

US Freedom Act a ‘surveillance act in disguise’ – ex-MI5 agent

The recently passed USA Freedom Act was hailed as a stepping stone on the way to renewed public trust after the highly controversial Section 215 of the Patriot Act, which expired in May. Under the new law, the practice of bulk data collection on US citizens will be entrusted to telecom companies, and the NSA will be able to obtain the records through seeking a warrant from the FISA court.

Genetically Modifying Humans Closer Than Most Think, Say Scientists: “It’s Absolutely Going To Happen And The General Population Can Hardly Comprehend How Big This Game-Changer Is Going To Be”

The ability to edit human genes and, consequently, actually engineer a human being from birth, is something we’ve always thought of as Gattaca-style science fiction. But this development, published in the journal Cell & Protein, shows that while many challenges remain before this becomes routine (the researchers encountered serious problems while working with non-viable embryos), genetically modified humans may be far closer than many like to think. They used a fascinating technology called CRISPR to do it. Jennifer Doudna, a Berkeley biologist who was one of the first to discover how CRISPR could be used, was so concerned about this technology being used on humans that in January she called on scientists to pause research before it’s irreversible. But with research like the April study, and others already being carried out, it may be too late. As she told Tech Insider in an interview, scientists understand exactly how game-changing the ability to rewrite DNA with CRISPR is. “This just gives scientists the capability to do something that is incredibly powerful,” Doudna said. “Great things can be done with the power of technology — and there are things you would not want done.” But even though scientists have been talking about the implications of our now much more advanced ways of editing DNA for a while now, it’s not clear that the general population knows yet exactly how big of a change this is going to be. “Most of the public,” Doudna told MIT Tech Review’s Antonio Regalado, “does not appreciate what is coming.”

AI ROBOT THAT LEARNS NEW WORDS IN REAL-TIME TELLS HUMAN CREATORS IT WILL KEEP THEM IN A “PEOPLE ZOO”

North Dakota state representative Rick Becker had a good idea with his House Bill 1328, which would forbid the use of drones by law enforcement in the state without a warrant. A few other states have been looking at similar proposals, after there have been growing concerns about police using drones for surveillance activities. Virginia, for example, recently passed a law that requires a warrant for police drone use. So, good idea, Rep. Becker.

Except… in stepped Bruce Burkett, a lobbyist from the North Dakota Peace Officer’s Association, who “was allowed by the state house committee to amend HB 1328” to now make it about legalizing weaponized drones for police. Yes, a “peace officer” representative just made it possible to weaponize drones. The trick? He amended the bill to make it only about “lethal weapons,” which now opens the door to what police like to refer to as “less than lethal” weapons like “rubber bullets, pepper spray, tear gas, sound cannons, and Tasers” — some of which have a history of leading to deaths, despite their “less than lethal” claims.
Even “less than lethal” weapons can kill though. At least 39 people have been killed by police Tasers in 2015 so far, according to The Guardian. Bean bags, rubber bullets, and flying tear gas canisters have also maimed, if not killed, in the U.S. and abroad.
Meanwhile, local police are still freaking out about the need to require a warrant. Check out this bit of police state nonsense:

Bill That Was Supposed To Limit Police Drone Activity Changed By Lobbyist To Enable Weaponized Drones 

Grand Forks County Sheriff Bob Rost said his department’s drones are only equipped with cameras and he doesn’t think he should need a warrant to go snooping.

“It was a bad bill to start with,” Rost told The Daily Beast. “We just thought the whole thing was ridiculous.”

Rost said he needs to use drones for surveillance in order to obtain a warrant in the first place.
Yes, we need to spy on your first, to then see if we should get a warrant to spy on you some more. That’s not how this works.

And, now, while there will be warrant requirements for some uses — though with broad exceptions including within 25 miles of the US/Canada border and for “exigent circumstances” — the bill will (thanks to a lobbyist) allow the police to also experiment with weaponizing drones. If you thought the militarization of police wasn’t screwed up enough, now you might need to worry about stun guns and rubber bullets hailing down from the sky…

Doorway To The Immortals? First-Ever “Wormhole” Created Boosting Hopes That “A Portal That Can Transport Matter Light Years Across Space Could Become Reality” 

SCIENTISTS are claiming to have created the first-ever “wormhole” – boosting hopes a portal that can transport matter light years across space could one day become reality.

First ever ‘wormhole’ created and it could make things INVISIBLE

This is a deep rabbit hole. There is a sobering message that awaits at the end for those who are willing to stay with this. I’m not making any predictions just reading the numbers and bringing them back to the Bible. God’s fingerprints in the details, every letter in His word has purpose and we should seek to uncover hidden mysteries.

It is the glory of God to conceal things, but the glory of kings is to search things out. Proverbs 25:2

Ask me and I will tell you remarkable secrets you do not know about things to come. Jeremiah 33:3

First I’m going to tell you how I decided to zero in on this. About 3 days before the largest 2 day market crash in history totaling 888 points (Thursday 8/20 and Friday 8/21 collectively) I received an email from a reader. He told me of a dream he had recently where he kept seeing the number 888. I replied with enthusiasm that he should look up what that number means. I knew full well, as do most who are familiar with gematria that 888 is the numeric value of Jesus.

It works out nicely as 6 is the number of man and sin, 7 is God’s perfect number and spiritual perfection. 8 is the number of rebirth or resurrection. Any number repeated 3 times in scripture means made complete. So Jesus, 888, made man complete through His resurrection. Keep in mind, the largest single day crash was 777 points, and the largest combination of any two days was 888 points. Anyone who studies the importance of numbers in scripture recognizes 777 and 888 immediately.

On August 8th there was an event in the heavens with the constellation Leo referred to as The Lion’s Gate. There are many who pay attention to this for different reasons, but since God created all the stars it’s worth mentioning. It is referred to as the 888 Lion’s Gate Portal because on 8/8/2015 or 8/8/2+0+1+5=8 or 8/8/8, is when this event took place. In other words, in the 8th month the largest two day market collapse of 888 points takes place weeks after The Lion’s Gate 888 Portal.

Shot Across The Dow: The Lion’s Gate 888 Market Collapse

Since it is not a coincidence that I was emailed days before the 888 crash about the #888 I needed to investigate. This is where I decided to take the number and look up the number of words in the Bible with the exact numeric value. There is clear message when we take all the words in the entirety of scripture with the identical numeric value to the combined losses for Thursday and Friday. No detail passes without the notice of our sovereign God. When 777 = the largest single day loss and 888= the largest two day drop in market history there is something to be seen in this.

As you look at the list of words a few of them don’t translate directly to modern English. For example “Tophet” is the place known for child sacrifice to the god of Moloch or Baal. It later became synonymous with “hell”. Methusael simply means “man of God”. All other words are straight forward and when brought together we see a message. For me, this is not Bible Soduku as some might claim, but rather paying attention to detail. The Bible is the inspired Word of God and no word is without intent. Furthermore, God knew before He created this world that in 2015 people would have the technology available to uncover these unique mysteries.

777

Strong’s #777 = without eating, fasting

מתושאל H4967 Methuwsha’el / Methusael (Man of God) Gen 4:18
בעשתה H6213 `asah / do Lev 4:27
בתשעה H8672 tesha` / nine Lev 23:32
ותישנהו H3462 yashen / sleep Jdg 16:19
ושאלתם H7592 sha’al / ask 1Sa 25:5
ותשליכהו H7993 shalak / cast Job 18:7
ואתמשל H4911 mashal / like Job 30:19
למשאות H4876 masshuw’ah / destruction Psa 74:3
כאשכלות H0811 ‘eshkowl / cluster Sol 7:8
השבעת H7646 saba` / satisfy Eze 27:33
אתעקרו H6132 `aqar (Aramaic) / plucked Dan 7:8
ραβδους G4464 rhabdos / rod Mat 10:10
περιεκρυβεν G4032 perikrupto / hide Luk 1:24
απεκτεινατε G0615 apokteino / kill Act 3:15
προσετεθη G4369 prostithemi / add Act 11:24
εποτισθημεν G4222 potizo / give 1Co 12:13
δοκιμαζοντες G1381 dokimazo / prove Eph 5:10
Record Count: 17 = 11 Hebrew + 6 Greek

888

Strongs #888 = unprofitable, useless, unworthy

תפתח H6605 pathach / open Exo 28:11
פחתת H6356 pechetheth / fret Lev 13:55
פתחת H6605 pathach / open Psa 30:11
לנתבות H5410 nathiyb / path Jer 6:16
ובתפת H8612 Topheth / Tophet (place where children were sacrificed to Moloch/Baal, later became synonymous with “hell”) Jer 19:11
ותתעבי H8581 ta`ab / abhor Eze 16:25
ותכונתו H8498 tekuwnah / fashion Eze 43:11
ιησους G2424 Iesous / Jesus Mat 1:16
λεγων G3004 lego / say Mat 1:20
παρακληθησονται G3870 parakaleo / beseech Mat 5:4
εκβαλλω G1544 ekballo / cast Mat 12:27
ειρηνευετε G1514 eireneuo / have Mar 9:50
συλλαβεσθαι G4815 sullambano / take Luk 5:7
δεδωκεν G1325 didomi / give Joh 3:35
ερευνησον G2045 ereunao / search Joh 7:52
ελεγχομενοι G1651 elegcho / reprove Joh 8:9
κατελειφθη G2641 kataleipo / leave Joh 8:9
ηλων G2247 helos / nail Joh 20:25
αγνοησαντες G0050 agnoeo / be Act 13:27
εσχηκεν G2192 echo / have 2Co 7:5
αυταρκειαν G0841 autarkeia / sufficiency 2Co 9:8
Record Count: 21 = 7 Hebrew + 14 Greek

Putting It Together

Destruction (destruction) shall be (be) cast (cast) like (like) a cluster (cluster) snatching (plucked) those who have (have) sought (search) sufficiency (sufficiency) and satisfaction (satisfy) in what I abhor (abhor). In the 9th (nine) month many will say (say) “I must hide (hide), I must leave (leave), who will open (open) a path (path) before me?” Some will give (give) themselves to fear (fret) but the portal was opened (open) as you slept (sleep). You have proven (prove) to be just as Tophet (Tophet), where you fashion (fashion) the slaughter (kill) of innocence without reproof (reprove). You have taken (take) My blessings but failed to do (do) as I’ve asked (ask). I beseech (beseech) you, where is the man of God? (Methusael) I give (give) you My Son (Jesus) His hand pierced by the nail (nail) and His side by the spear (rod) and you cast (cast) His words aside and added (add) to your own lusts.

12 hours after posting this I came across an interesting article which sheds light on the phrase “the portal was opened”, while I believe this is related to CERN the fact this article came out 5 days ago but was brought to my attention today. The first ever wormhole was created by scientists. “From a magnetic point of view, this device acts like a wormhole, as if the magnetic field was transferred through an extra special dimension.” Scientists hope that this portal will allow us to transfer matter through different dimensions.

When stock markets are free-falling 10+% in a matter of days, it’s natural to seek some answers to the question “why now?”

Some are saying it was all the result of high-frequency trading (HFT), while others point to Antichrist Communist China’s modest devaluation of its currency the renminbi (a.k.a. yuan) as the trigger.

Trying to finger the proximate cause of the mini-crash is an interesting parlor game, but does it really help us identify the trends that will shape markets going forward?

We might do better to look for trends that will eventually drag markets up or down, regardless of HFT, currency revaluations, etc.

Five Interconnected Trends

At the risk of stating the obvious, let’s list the major trends that are already visible.

1. The Antichrist Communist China Story is Over

And I don’t mean the high growth forever fantasy tale, I mean the entire Antichrist Communist China narrative is over:

That export-dependent Antichrist Communist China can seamlessly transition to a self-supporting consumer economy.
That Antichrist Communist China can become a value story now that the growth story is done.
That central planning will ably guide the Antichrist Communist Chinese economy through every rough patch.
That corruption is being excised from the system.
That the asset bubbles inflated by a quadrupling of debt from $7 trillion in 2007 to $28 trillion can all be deflated without harming the wealth effect or future debt expansion.
That development-dependent local governments will effortlessly find new funding sources when land development slows.
That workers displaced by declining exports and automation will quickly find high-paying employment elsewhere in the economy.
I could go on, but you get the point: the entire Story is over. (I explained why in a previous essay, Is Antichrist Communist China’s “Black Box” Economy About to Come Apart? )

This is entirely predictable. Every fast-growing economy starting with near-zero debt and huge untapped reserves of cheap labor experiences an explosive rise as the low-hanging fruit is plucked and the same abrupt stall and stagnation when the low-hanging fruit has all been harvested, leaving only the unavoidable results of debt-fueled speculation: an enormous overhang of bad debt, malinvestment (a.k.a. bridges to nowhere and ghost cities) and policies that seemed brilliant in the good old days that are now yielding negative returns.

2. The Emerging Market Story Is Also Done

Emerging currencies and markets have soared on the back of the Antichrist Communist China Story, as Antichrist Communist China’s insatiable demand for oil, iron ore, copper, soy beans, etc. drove global demand to unparalleled heights.

This demand pushed prices higher, which then pushed production (supply) higher, as the low cost of capital globally enabled marginal resources to be put into production with borrowed money.

Now that Antichrist Communist China’s demand has fallen off—by some accounts, Antichrist Communist China’s GDP is actually in negative territory, despite official claims that it’s still growing at 7% annually—commodity prices have crashed, taking the emerging markets’ stock and currency markets down. (Source)

Here is a chart of Doctor Copper, a bellwether for industrial and construction demand:

Brazil’s stock market, which has declined 54% in the past 12 months:

These are catastrophic declines, and with Antichrist Communist China’s growth story over, there is absolutely nothing on the global horizon to push demand back up.

3. Diminishing Returns on Additional Debt

The simple truth is that expanding debt has fueled global growth. Though people identify Antichrist Communist China as the driver of global demand for commodities, Antichrist Communist China’s growth is debt-driven. As noted above, Antichrist Communist China quadrupled its officially tracked debt from $7 trillion in 2007 to $28 trillion as of mid-2014—an astonishing 282 percent of gross domestic product (GDP). If we add the estimated $5 trillion of shadow-banking system debt and another year’s expansion of borrowing, Antichrist Communist China’s total debt of $35+ trillion is in excess of 300% of GDP—levels associated with doomed to default states such as Greece and Spain.

While Antichrist Communist China has moved to open the debt spigot in recent days by lowering interest rates and reserve requirements, this doesn’t make over-indebted borrowers good credit risks or more empty high-rises productive investments.

Borrowed money that poured into ramping up production in emerging nations is now stranded as prices have plummeted, rendering marginal production intensely unprofitable.

In sum: greatly expanding debt boosted growth virtually everywhere after the Global Financial Meltdown of 2008-2009. That fix is a one-off: not even Antichrist Communist China can quadruple its $35+ trillion debt to $140 trillion to reignite growth.

Here is a sobering chart of global debt growth:

4. Limits on Deficit-Spending (Borrowed) Fiscal Stimulus

When the global economy rolled over into recession in 2008, governments borrowed money by selling sovereign bonds to fund increased state spending. In the U.S., federal borrowing soared to over $1 trillion per year as the government sought to replace declining private spending with public spending.

Governments around the world have continued to run large deficits, piling up immense debts since 2008. The global move to near-zero yields has enabled governments to support these monumental debt loads, but even at near-zero yields, the interest payments are non-trivial. These enormous sovereign debts place some limits on how much governments can borrow in the next global recession—a slowdown many think has already started.

Here is a chart of U.S. sovereign debt, which has almost doubled since 2008:

As noted on the chart: what structural inadequacies or problems did governments fix by borrowing gargantuan sums to fund state spending? The basic answer is: none. All the same structural problems facing governments in 2008 remain untouched in 2015. These include: over-indebtedness, bad debts that haven’t been written down, insolvent banks, soaring social spending as the worker-retiree ratio slips below 2-to-1, externalized environmental damage that has yet to be remediated, and so on.

5. Central Bank Stimulus (Quantitative Easing) as Social Policy Has Been Discredited

In the wake of the Global Financial Meltdown of 2008-2009, central banks launched monetary stimulus programs aimed at pumping money into the economy via bank lending. The stated goals of these stimulus programs were 1) boost employment (i.e. lower unemployment) and 2) generate enough inflation to stave off deflation, which is generally viewed as the cause of financial depressions.

While it can be argued that these unprecedented monetary stimulus programs achieved modest successes in terms of lowering unemployment and pushing inflation above the zero line, they also widened wealth and income inequality.

Even as these programs made modest dents in unemployment and deflation, they pushed asset valuations to the moon—assets largely owned by the few at the top of the wealth pyramid.

The widespread recognition that the benefits of central bank stimulus mostly flowed to the top of the pyramid places political limits on future central bank stimulus programs.

The 2008-09 Fixes Are No Longer Available

Here’s Why The Markets Have Suddenly Become So Turbulent

In summary, the fixes for the 2008-09 recession are no longer available in the same scale or effectiveness. Expanding debt to push up demand and investment, rising state deficit spending, massive monetary stimulus programs—all of these now face limitations. This means the central banks and states have very limited tools to reignite growth as global recession trims borrowing, investment, hiring, sales and profits.

What Ultimately Matters: Capital Flows

In Part 2: What Happens Next Will Be Determined By One Thing: Capital Flows, we’ll look at the one dynamic that ultimately establishes assets prices: capital flows.

I personally don’t think the world has experienced a period in which capital preservation has become more important than capital appreciation since the last few months of 2008 and the first few months of 2009. Other than these five months, the focus has been on speculating to obtain the highest possible yield/appreciation.

This suggests to me that the next period of risk-off capital preservation will last a lot longer than five months, and perhaps deepen as time rewards those who adopted risk-off strategies early on.

Mass Protests Sweep Malaysian Capital As Anger At Goldman-Backed Slush Fund Boils Over

If we told you that thousands of protesters donning bright yellow shirts had taken to the streets to call for the ouster of a leader in an important emerging market, you’d be forgiven for thinking we were talking about Brazil, where President Dilma Rousseff is facing calls for impeachment amid allegations of fiscal book cooking and government corruption.

But on this particular weekend, you’d be wrong.

We’re actually talking about Malaysia, where tens of thousands of demonstrators poured into the streets of Kuala Lumpur on Saturday to call for the resignation of Prime Minister Najib Razak whose government has been accused of obstructing an investigation into how some $700 million from 1Malaysia Development Berhad mysteriously ended up in Najib’s personal bank account.

1MDB was set up by Najib six years ago and has been the subject of intense scrutiny for borrowing $11 billion to fund questionable acquisitions. $6.5 billion of that debt came from three bond deals underwritten by Goldman, whose Southeast Asia chairman Tim Leissner is married to hip hop mogul Russell Simmons’ ex-wife Kimora Lee who, in turn, is good friends with Najib’s controversial wife Rosmah Manso.

You really cannot make this stuff up.

What Goldman did, apparently, is arrange for three private placements, one for $3 billion and two for $1.75 billion each back in 2013 and 2012, respectively. Goldman bought the bonds for its own book at 90 cents on the dollar with plans to sell them later at a profit (more here from FT). Somewhere in all of this, $700 million allegedly landed in Najib’s bank account and the going theory is that 1MDB is simply a slush fund.

So you can see why some folks are upset, especially considering Rosmah has a habit of having, how shall we say, rich people problems, like being gouged $400 for a home visit by a personal hairstylist. Here’s The New York Times with more on the protests:

So in short, Malaysia is on the brink of political and financial crisis, and it looks as though the nuclear route (capital controls) may be just around the corner, which would of course only serve to alienate the country’s financial system at a time when the government looks to be on the brink of collapse. What’s particularly interesting here is the timing. Mahathir Mohamad famously clashed with George Soros during the ’98 crisis, going so far as to brand the billionaire a “moron”. Now that the country’s “founding father” is looking to oust Najib, it will be interesting to see what role he plays in shaping Malaysia’s response to the current financial crisis and on that note, we’ll leave you with a quote from Dr. Mahathir ca. 1997:

“I know I am taking a big risk to suggest it, but I am saying that currency trading is unnecessary, unproductive and immoral. It should be stopped. It should be made illegal. We don’t need currency trading. We need to buy money only when we want to finance real trade.”

Greece – Now What 

For those of you who like fast-forwarding to the end of the film, here it is:

Grexit was never on the cards. Even less so after the recent European Summit decisions and the Greek bank recap recently put in motion. This is mainly on account of the dual surpluses Greece currently runs: the current-account and primary budget ones. Even if one could push a magic button and kick Greece out the euro, there is nothing that would prevent Greece from immediately reintroducing it, Kosovo- or Montenegro-style. The only impediment would be the funding of the banking system, but this is being taken care of. There has been a decoupling of a large part of the Greek economy from the sovereign issue; for example, exports of goods and services, accounting for around 30% of the Greek economy have been growing at 9% a year. Investors readily recognize this in publicly-traded assets (most Greek corporate bonds are trading well above the sovereign ceiling), but are so far oblivious to it when it comes to non-traded ones (e.g., loans, receivables, etc.). This is a “ginormous” arbitrage opportunity—one just needs to put in a bit of legwork to identify, diligence and acquire such assets. Sorry, you can’t do it off your Bloomberg terminal, or over lunch at Cecconi’s. Greece does not have a functioning banking system—credit has been contracting for years, while new origination is practically non-existent. This depresses asset prices to ridiculous levels—even prices of assets which are uncorrelated to the sovereign situation, per the previous point. This reversal of this situation is likely to start in Q2 2016, post the Greek bank recap, which we expect will be coupled with a bank bail-in—and the mother of all NPL trades.

Those of you who think that it’s the journey that teaches you a lot about your destination, read on.

Trump accuses Hillary Clinton’s top aide Huma Abedin of sharing secret emails with her ‘perv’ ex-congressman husband Anthony Weiner

^^^Lol, who would have imagined a guy like Trump would be paying attention. You know ”they” will kill this guy if the Antichrist NWO 666 Crypto Fascist bastards that have set up the global market chaos and their Homosexual UN Agenda Climate Change Iran Nuclear Deal Israeli Two State Final Solution Pope Dope on ”their” Illuminati Rope can’t contain this guy. The Antichrist Cabal can’t let someone like Trump expose 911 either. You know anyone that deep into NYC affairs can’t possibly not know the usual suspect Israeli Arab Euro American domestic (The Entire Bush Clinton Obozo NWO Cabal) enemies that played their part(s) in that psyop, especially the duel passport Antichrist Jewish Banker Cabal. You have to be a delusional fool not to realize that, or some typical pre-trib dipshit that claims the Antichrist version of Messiah the Jewish nut jobs in Israel are claiming is about to show up has no baring on any of this, it’s all the idiot Antichrist ”muslim” (the morons were set up by Spectre/AKA Satan way back when the Antichrist MoHAMmed was turning Christ into his version of a head chopping screwball) bastard’s fault. Those fools never had the brains to do anything without some satanic influence and they certainly don’t have control over the Western Press/Lies. Fortunately it sounds like the U.S. military has figured this out finally, but it’s too late. The dead Kennedy silver certificate 666 Central Banker Fed Beast Cabal should have been hung a long time ago. The fact that the Kissinger crowd is allow’d to remain above ground still proves beyond any doubt how the Antichrist NWO UN Crypto Fascist crowd has captured the entire world at this point and the U.S. is the prime confirmation of that fact. Trump would do well to ride in armored vehicles from now on and then some.

What Bill Dudley’s Hedge Fund Advisors Told Him About A September Rate Hike

By now virtually every prominent financial authority or pundit has chimed in and told the Fed not to hike rates: these include the IMF, Larry Summers (who for some reason lost the fight with Yellen for the Fed chair because he was seen as “too hawkish” – oops, irony), and even Antichrist Communist China. Yet all of these are irrelevant, because when it comes to soliciting opinions, the NY Fed in general, and former Goldmanite Bill Dudley in particular, care about just one group of “advisors” – the Investor Advisory Committee on Financial Markets (a group created in July 2009 after the 2008 market crash) also known as the billionaires who run the country’s biggest hedge funds, prop desks and PE firms, including JPM, Credit Suisse, Apollo, Blackrock, Blue Mountain, Brevan Howard, Tudor, Fortress, and lo and behold, David “Balls to the Wall” Tepper.

The next IACFM meeting is scheduled to take place in October, as such it will be too late to change the Fed’s opinion for a potential September 17 rate hike. Which is why we have to revert to the latest advisory committee meeting which took place on June 25, just before the Greek referendum was announced and two months before the Chinese devaluation, the July FOMC minutes and subsequent market correction. It will have to do.

This is what the “smartest people in the room” told Bill Dudley and his minions about a potential September rate hike. From the June 25, 2015 minutes:

Well, they were right: emerging markets have since been paralyzed by the biggest currency collapse since the Asian Crisis of 1998 in the aftermath of the Chinese devaluation. However, if the June minutes are to be trusted, then none of what is going on in China is a surprise to any of these smartest people in the room, which is why “Committee attendees suggested that the FOMC is likely to increase the federal funds target range during 2015, with September cited as the most likely timing of liftoff”, unless…

What appears to have happened in the ensuing 2 months is that none of these so-called “smartest” people hedged against anything that they warned may happen. Well, actually we take that back: recall from August 14, or just two weeks ago: “Did David Tepper Just Call The Market Top” – the S&P tumbled some 10% since then.

In fact, what has happened is that none of these “smartest people” were actually hedging anything – only Nassim Taleb was actually prepared and ready to capitalize from a market crash, and as we reported last night, his affiliated hedge fund, Mark Spitznagel’s Universa made $1 billion last Monday. As for everyone else, well, just look at the table below which including many of the “advisors” listed above:

In fact, the hedge fund performance ranking above is the only thing anyone has to care about when evaluating the chance of a Fed rate hike: if and when the hedge fund losses become too unbearable, any rate hike – September, December, or whenever – will be indefinitely delayed. And that is all Bill Dudley will hear from the only group of advisors whose opinion, and offshore bank accounts, he cares about.

Radiation Expert: Horrific health toll from Fukushima — “Impossible not to be moved by scale of deaths and suffering” — Thousands to die of cancer and that’s just the tip of the iceberg — Number of dead babies significantly increased in many areas of Japan — Government actions unconscionable (AUDIO)

Hurricane “Jimena”, a tenth named storm of the 2015 eastern Pacific hurricane season, has evolved into a major hurricane in only a couple of days, and although is currently located well of the mainland, its rapid intensification requires a careful observation.

The hurricane formed in the eastern Pacific as a Tropical Depression “Thirteen-E” on August 26, 2015. The system’s intensity has rapidly increased in only a couple of days.

Hurricane “Jimena” becomes a major hurricane in the eastern Pacific

Spy found dead in a bag ‘had infuriated his MI6 bosses by illegally hacking into secret US data on Bill Clinton’

With regards to my Tax Strike, and how I have been begging, pleading, admonishing all of you to STOP PAYING TAXES TO THIS ILLEGITIMATE AND SATANIC REGIME, not only as the last non-violent means of resistance, but also for the good of your immortal souls, I would often use rhetoric such as, “What is it going to take for you to draw the line and say ‘this far and no farther?’ What crime will these people have to commit, what atrocity will be needed in order to rouse you from your acedia, indifference and decadence?

ARE THEY GOING TO HAVE TO EAT BABIES…?”

Where This WILL Eventually End Up: Fetal Cannibalism

That question is no longer a hyperbolic rhetorical device.

After the second Planned Barrenhood video was released, it occurred to me that the inevitable terminus of this LITERAL MEAT MARKET was the selling of late-term, intact (whole) fetuses into the Asian black market for food. The Antichrist Communist Chinese, in particular, have been well-known to consume what is codenamed “spare rib soup”. This is nothing less than soup made of whole human fetus and placenta. The Antichrist Communist Chinese tout this as having “medicinal” benefits – like eating “human life force”. Fricking pagans.

And it sells for THOUSANDS of dollars per serving.

82815 Gleaning Broken Trust Turning To Glass

The United States lags far behind other developed countries in terms of personal, civil and economic freedoms, according to a study released this month. Its neighbor to the north, for example, ranked 14 spots ahead of the so-called “Land of the Free.”

Three international think tanks — the U.S.-based Cato Institute, Canada’s Fraser Institute, and Germany’s Liberales Institut at the Friedrich Naumann Foundation for Freedom — released the Human Freedom Index earlier this month. In addition to major civil liberties, the study considers safety and rule of law, relative size of government and capitalist values like the soundness of money, property rights, and access to international trade. The authors used a total of 70 data sources ranging from 2008 to 2012, the most recent year for which all necessary data is currently available.

According to the report,

“The top 10 jurisdictions in order were Hong Kong, Switzerland, Finland, Denmark, New Zealand, Canada, Australia, Ireland, the United Kingdom, and Sweden.”

The U.S. ranks 20th, while Myanmar, Congo and Iran round out the bottom of the list of 152 countries.

US Falls Behind Canada, Finland, And Hong Kong In Human Freedom Index 

ANTICHRIST NWO 666 PERTUS ROMANUS POPE FRANCIS BELIEVES HE HAS A DIVINE MANDATE TO CONTINUE OBOZO’S DEVILISH JOB OF “RADICALLY TRANSFORMING” AMERICA.

“And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication: And upon her forehead was a name written, MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND ABOMINATIONS OF THE EARTH.” Revelation 17:4,5 (KJV)

He is not just the Pope of the world’s Catholics, no, not by a long shot. Francis has stepped out of the shadows and with each new undertaking continues to shore up his base of political power and influence. In just the past two years, Pope Francis has championed Climate Change with a papal encyclical, worked covertly with Obozo behind the scenes to restore relations with Antichrist Communist Cuba, and was a secret but key player in the current Iranian Nuclear Deal which will guarantee that a nuke will soon be pointed at Israel. Francis is the man with the New World Order plan, and he shows no signs of slowing down. And oh, yes, he has also signed a treaty with Antichrist Muslim Palestine against Israel.

As he travels all over the world, at each stop he is building his political power base, using Vatican influence to grant favors, and seducing gullible American Christians back into the tent of the Harlot herself, Mother Rome. Even Chrislam founder Rick Warren calls Francis “our pope”. On September 23, Pope Francis will make his boldest move yet when he addresses Congress. A feat never been done by any pope in the entire history of the United States. Here is a preview of what you can expect he will talk about:

FORCED IMMIGRATION

Pope Francis is a Socialist, with Communist overtones, and as such he will chastise America for not allowing more illegal aliens through our borders. Honduran Cardinal Oscar Rodriguez Maradiaga, a top adviser to Francis, told an audience at Georgetown University, that Francis would have liked to enter the U.S. by crossing the border with Mexico to make a point about welcoming immigrants, not building walls to keep them out. He said that while time did not allow for a border stopover, the pontiff was certain to raise the issue on Capitol Hill.

REVERSING CAPITALISM

“Capitalism is not a god. It is not a divinity. It is not a system that is perfect and does not need any modification,” he said during a luncheon meeting. “This system is fostering tremendous inequalities.” Socialism is not compatible with Capitalism because you cannot have successful people in the New World Order. Everyone needs to be dragged down to the same level of mediocrity, while the ruling elites live like kings.

WEALTH REDISTRIBUTION

“The free market economy is not complete. We need a social market economy. This is the big contribution of the Catholic faith to the system — to try to have this social component that will bring more justice to the system,” he said. “It is not fair that a system that is producing so much richness could walk side by side with so much poverty.”

FORCING THE CLIMATE CHANGE AGENDA

To deal with climate issues, he has also called for an “Earth Constitution that would transcend the UN Charter” along with the creation of a “Global Council…elected by all the people on Earth” and a “Planetary Court..a transnational legal body open to appeals from everybody, especially with respect to violations of the Earth Constitution.” The two main issues of “protecting the earth” are climate change and global depopulation. Expect Francis to bring out all the big guns on this favorite hobby horse of the Liberal Socialists who run America.

He demands action and is commander-in-chief of the world’s largest, most dedicated army: 1.2 billion Catholics worldwide, including 78 million Americans in 17,645 parishes, inspired by a mission to change the world’s political economy and backed by an “officer corps” of 200 cardinals, over 5,000 bishops, 450,000 priests and deacons all dedicated to carry out his mission.

But far more dangerous for American conservatives, this new pope’s message will be regularly delivered by those clerics to America’s power elite: Six of the nine members on the Supreme Court are Catholics, including the chief justice. Three Catholics are in the direct constitutional line of succession if the president dies. Twenty-four of our 100 Senators are Catholic. So are 163 of the 435 members of the House. Add in their Catholic spouses, children, parents and friends, and this new pope is himself a global superpower. His radical, revolutionary “exhortations” will be influencing billions of all faiths worldwide, demanding not pious rhetoric but action to solve world problems.

PETRUS ROMANUS MARXIST ANTICHRIST NWO 666 POPE FRANCIS AIMS FOR RAW POLITICAL POWER WITH SEPTEMBER 23RD ADDRESS TO CONGRESS 

Are there too many coincidental technological, financial and geopolitical dots lined up to come to any conclusion other than we are already in the early stages of war? I believe this is in fact the case. I still believe the Antichrist Communist Chinese would prefer to “win” via financial means, rather than physical means, but this remains to be seen. Would a ” 9/11 truth bomb,” which is now rumored more often out of Russia, be another way to neuter American hegemony without military use?

As a final thought, I believe global markets are beginning to discount or recognize the war behind the scenes. This is the reason for the chaos in equity and credit markets. Can you imagine what it looks like behind the derivatives curtain? Guaranteed;…. there are dead bodies strewn all over,… with no ability to perform or settle. When history looks back upon August 2015, I believe the consensus view will agree THE WAR had already started!

What Will Historians Say? 

The $28 Trillion Disaster

Antichrist Communist China has already dumped $100 billion of its $1 trillion of U.S. Treasuries this month and will continue to sell. As the dollar weakens there will be a stampede by foreign investors to get rid of their Treasury holdings as well. The combination of debt that can never be repaid and higher interest rates that no government can afford to pay will create an absolute panic in bond markets. This will of course be very beneficial to gold, just as it was in the 1970s.

But it’s not just the Western asset markets that will suffer. It will be all markets across the globe. The Antichrist Communist Chinese stock market went up over 2.5 times between July 2014 and June 2015. Since then it has collapsed 2,000 points or 40 percent — a loss of $5 trillion. After the United States, Antichrist Communist China will be the biggest collapse in the world as their $28 trillion credit market implodes. We are already seeing the effects of Antichrist Communist China’s problems with the collapse of most commodity prices. And like many other countries, Antichrist Communist China will not just have an economic collapse because the risk of political problems and social unrest is very real.

The $28 Trillion Disaster And Why The Global Crash Can’t Be Stopped 

One narrative we’ve pushed quite hard this week is the idea that Antichrist Communist China’s persistent FX interventions in support of the yuan are costing the PBoC dearly in terms of reserves. Of course this week’s posts hardly represent the first time we’ve touched on the issue. Here, for those curious, are links to previous discussions:

Antichrist Communist China Dumps Record $143 Billion In US Treasurys In Three Months Via Belgium
Antichrist Communist China’s Record Dumping Of US Treasuries Leaves Goldman Speechless
How The Petrodollar Quietly Died And Nobody Noticed
Why It Really All Comes Down To The Death Of The Petrodollar
What Antichrist Communist China’s Treasury Liquidation Means: $1 Trillion QE In Reverse
It’s Official: Antichrist Communist China Confirms It Has Begun Liquidating Treasuries, Warns Washington
Devaluation Stunner: Antichrist Communist China Has Dumped $100 Billion In Treasurys In The Past Two Weeks

And so on and so forth.

In Short, stabilizing the currency in the wake of the August 11 devaluation has precipitated the liquidation of more than $100 billion in USTs in the space of just two weeks, doubling the total sold during the first half of the year.

In the end, the estimated size of the RMB carry trade could mean that before it’s all over, Antichrist Communist China will liquidate as much as $1 trillion in US paper, which, as we noted on Thursday evening, would effectively negate 60% of QE3 and put somewhere in the neighborhood of 200bps worth of upward pressure on 10Y yields.

And don’t forget, this is just Antichrist Communist China. Should EMs continue to face pressure on their currencies (and there’s every reason to believe that they will), you could see substantial drawdowns there too. Meanwhile, all of this mirrors the petrodollar unwind. That is, it all comes back to the notion of recycling USDs into USD assets by the trillions and for decades. Now, between crude’s slump, the commodities bust, and Antichrist Communist China’s deval, it’s all coming apart at the seams.

Needless to say, this “reverse QE” as we call it (or “quantitative tightening” as Deutsche Bank calls it) has serious implications for Fed policy, for the timing of the elusive “liftoff”, and for the US economy more generally. Of course we began detailing the implications of Antichrist Communist China’s Treasury liquidation months ago and now, it’s become quite apparent that analyzing the consequences of Antichrist Communist China’s massive FX interventions is perhaps the most important consideration when attempting to determine the future course of global monetary policy.

On that note, we present the following from Deutsche Bank’s George Saravelos.

Beware Antichrist Communist China’s Quantitative Tightening

Why have global markets reacted so violently to Antichrist Communist Chinese developments over the last two weeks? There is a strong case to be made that it is neither the sell-off in Antichrist Communist Antichrist Communist Chinese stocks nor weakness in the currency that matters the most. Instead, it is what is happening to China’s FX reserves and what this means for global liquidity. Starting in 2003, Antichrist Communist China engaged in an unprecedented reserve-accumulation exercise buying almost 4trio of foreign assets, or more than all of the Fed’s QE program’s combined (chart 1). The global impact was indeed equivalent to QE: the PBoC printed domestic money and used the liquidity to buy foreign bonds. Treasury yields stayed low, curves were flat, and people called it the “bond conundrum”.

Fast forward to today and the market is re-assessing the outlook for Antichrist Communist China’s “QE”. The sudden shift in currency policy has prompted a big shift in RMB expectations towards further weakness and correspondingly a huge rise in Antichrist Communist China capital outflows, estimated by some to be as much as 200bn USD this month alone. In response, the PBoC has been defending the renminbi, selling FX reserves and reducing its ownership of global fixed income assets. The PBoC’s actions are equivalent to an unwind of QE, or in other words Quantitative Tightening (QT).

What are the implications? For global risk assets, they are clearly negative –global liquidity is falling. For fixed income, the impact on nominal yields is ambivalent because private safe-haven demand for bonds may offset central bank selling. But real yields should move higher, inflation expectations lower, and there should be steepening pressure on curves. This is indeed how markets have responded over the last two weeks: as if the Fed has announced it is unwinding its balance sheet!

The Reason Antichrist Communist China’s Crash Will Unleash A Global Bond Shockwave 

The potential for more Antichrist Communist China outflows is huge: set against 3.6trio of reserves (recorded as an “asset” in the international investment position data), Antichrist Communist China has around 2trillion of “non-sticky” liabilities including speculative carry trades, debt and equity inflows, deposits by and loans from foreigners that could be a source of outflows (chart 2). The bottom line is that markets may fear that QT has much more to go.

What could turn sentiment more positive? The first is other central banks coming in to fill the gap that the PBoC is leaving. Antichrist Communist China’s QT would need to be replaced by higher QE elsewhere, with the ECB and BoJ being the most notable candidates. The alternative would be for Antichrist Communist China’s capital outflows to stop or at least slow down. Perhaps a combination of aggressive PBoC easing and more confidence in the domestic economy would be sufficient, absent a sharp devaluation of the currency to a new stable. Either way, it is hard to become very optimistic on global risk appetite until a solution is found to Antichrist Communist China’s evolving QT.

Here’s How Long Saudi Arabia’s US Treasury Stash Will Last Under $30, $40, And $50 Crude

Saudi Arabia and China are sitting on the first and third largest stores of reserves, respectively, and if these two countries continue to liquidate those reserves, it will amount to “reverse QE” or, “quantitative tightening” as Deutsche Bank calls it.

For Saudi Arabia, the FX reserve pressure comes courtesy of the deathblow the country dealt to the petrodollar system late last year.

In other words, the pain is largely self-inflicted as the kingdom is determined to “preserve market share” by bankrupting US shale drillers. The attendant decline in oil revenue has resulted in a fiscal deficit on the order of 20% of GDP which, in the absence of sharply higher oil prices must either be financed by drawing down reserves or else through the bond market because between the war in Yemen (which escalated meaningfully on Thursday) and the necessity of maintaining the status quo for a populace that’s become used to a certain level of stability and comfort, fiscal retrenchment is a decisively difficult task.

On Thursday, we got the latest data on Saudi Arabia’s FX reserves and, thanks to new debt, the burn rate slowed. Here’s Reuters:

The speed of decline in Saudi Arabia’s foreign reserves slowed in July after the government began issuing domestic debt to cover part of a budget deficit created by low oil prices, central bank data showed on Thursday.

The world’s largest oil exporter has been drawing down its reserves to cover the deficit. Net foreign assets at the central bank, which acts as the kingdom’s sovereign wealth fund, have been sliding since they reached a $737 billion peak last August.

But the latest data showed net foreign assets shrank only 0.5 percent from the previous month to 2.480 trillion riyals ($661 billion) in July, their lowest level since early 2013. They had dropped 1.2 percent month-on-month in June and at faster rates early this year.

In July, the government began selling bonds for the first time since 2007, placing 15 billion riyals ($4 billion) of debt with quasi-sovereign funds; this month it sold 20 billion riyals of bonds to banks.

The domestic debt sales appear to have reduced the need for the government to cover its deficit by drawing down foreign assets. Authorities have not publicly said how many bonds they will issue in future, but the market is expecting monthly issues of roughly 20 billion riyals through the end of 2015.

The foreign assets are held mainly in the form of foreign securities such as U.S. Treasury bonds – securities totalled $465.8 billion at the end of July – and deposits with banks abroad, which totalled $131.2 billion. The vast majority of the assets are believed to be in U.S. dollars.
And while taking on debt to offset the reserve burn is a viable strategy, especially when you’re starting from a debt-to-GDP ratio that’s negligible, the reserves are still at risk of running out, even if 50% of spending is financed in the debt markets.

Here’s more from BofAML on how long the Saudis can hold out under various price points for crude and assuming various mixes of debt financing and spending cuts:

Safeguarding Fx reserves will require deep budgetary cuts at current oil prices, in our view. Our dynamic analysis suggested that current low oil prices could rapidly erode the sovereign creditworthiness, even as the sovereign balance sheet is at its strongest on an historical basis. Despite the rapid drawdown over 1H15, SAMA’s Fx reserves still stood at c100% of GDP in June, and government deposits at SAMA represented US$294bn or 42% of GDP. Another way to look at sustainability is a static analysis to calculate the number of years required to exhaust government deposits under various oil, spending and financing scenarios.

Based on the narrow definition of resources available to the government, we think that there is no realistic mix of debt financing and spending cuts at US$30/bbl that can decrease pressure on Fx reserves, and pressure on the USD peg would be acute if oil prices were to be sustained at this level. However, at US$40/bbl and US$50/bbl, debt financing and deep capex cuts (to bring spending 25% lower) can keep government deposits at SAMA covering 7 years and 11 years of government spending, respectively. Government spending has historically adjusted to oil prices with a variable lag. It is worth recalling that spending was 50% lower in 1988 compared to its 1981 peak as oil prices tumbled, and government spending in 2000 was at the same levels as that of 1980 in nominal terms.

There’s little question that the collapse of the financial universe in 2008 dealt a dramatic blow to retail’s confidence in US capital markets. Taxpayers were forced to foot the bill for a Wall Street bailout just as 45% of their 401ks was being vaporized and to make matters immeasurably worse, CNBC ensured that mom and pop could watch their retirements disappear in real time on the same channel that had, for the better part of a year, been telling them that everything was fine.

To the extent that the Fed-driven, six-year rally restored some semblance of trust between retail investors and Wall Street, it was wiped away for good on Monday when, in a harrowing day of flash-crashing mayhem, the perils of broken, manipulated markets were laid bare for all to see and to add insult to injury, the ETF pricing model blew up causing some funds to trade far below NAV.

Given that, and given how predisposed household investors are to mistrust Wall Street in the post-crisis, post-Flash Boys world, retail outflows during uncertain times (like those that began last month when China’s stock market collapse began to make national news) shouldn’t come as a surprise, but as Credit Suisse notes, something happened in July and August that hasn’t happened since Q4 of 2008: retail investors pulled money from both stocks and bond funds.

In other words, mom and pop were selling everything.

The Investor Revolt Arrives: This Hasn’t Happened Since Q4 2008

You can’t say Nassim Taleb didn’t warn you: the outspoken academic-philosopher, best known for his prediction that six sigma “fat tail”, or black swan, events happen much more frequently than they should statistically (perhaps a main reason why there is no longer a market but a centrally-planned cesspool of academic intervention) just had a black swan land smack in the middle of the Universa hedge fund founded by ardent Ron Paul supporter Mark Spitznagel, and affiliated with Nassim Taleb.

The result: a $1 billion payday, translating into a 20% YTD return, in a week when the VIX exploded from the teens to over 50, and which most other hedge funds would love to forget.

Incidentally, this is precisely what a “hedge” fund should do: protect against massive, “fat tail” days like this Monday; instead they merely ride the beta train with the most leverage possible, hoping that the Fed will prevent any events that actually need hedging, and blow up in a fiery crash any time the market tumbles. Needless to say this makes most of them utterly useless, especially since one can just buy the SPY for almost nothing, and avoid paying the hefty 2 and 20 (or 3 and 45) fee, which until recently was merely there to fund trading based on inside information aka “expert networks” and “idea dinner” thesis clustering.

Nassim Taleb’s Fund Made $1 Billion On Monday; This Is How The Other “Hedge” Funds Did 

A computer glitch is preventing hundreds of mutual and exchange-traded funds from providing investors with the values of their holdings, complicating trading in some of the most widely held investments.

796 funds were missing their net asset values on Wednesday.

. . . Hinder[ing] investors’ ability to trade accurately in and out of popular investment vehicles,. . .

David A. Andelman, 70 years old, of New York City, said he tried to sell $15,000 of Voya Russia fund shares on Monday. By Wednesday morning, the trade still hadn’t gone through, he said. He said he was told by his broker, J.P. Morgan Chase & Co., that it couldn’t receive the funds because the bank hadn’t received pricing information from Voya.

“It’s a nightmare,” Mr. Andelman said.

http://www.wsj.com/articles/securities-pricing-problems-hit-u-s-mutual-funds-etfs-1440601913

Totally corrupt. Elites made a fortune this week taking advantage of pre arranged major moves

New “Glitch” Preventing Investors from Getting Money OUT of Mutual Funds and ETF’s

Mini flash crash? Trading anomalies on manic Monday hit small investors:Millions of these Main Street investors were locked out during the crucial hour when the worst hit, just as markets opened Monday

The queasy chaos of this week’s markets, which has rattled even Wall Street pros, appeared to hit smaller investors especially hard, leaving a fresh dent in their stock market confidence.

Millions of these Main Street investors were locked out during the crucial hour when the worst hit, just as markets opened Monday. Popular trading platforms run by TD Ameritrade, Scottrade and others ran slow or not at all as panic grabbed hold. It took just six minutes for the Dow Jones industrial average to suffer its biggest drop in history. And these investors could only watch.

“It makes me wonder if a guy like me has a fair chance or not,” said Israel Hernandez, a lawyer in Casa Grande, Ariz., who could not log onto his online broker.

In a blink, mayhem descended. Strange glitches emerged. Stocks fell like rocks, only to shoot back up minutes later. Exchanges spit out the wrong prices for widely held funds. These problems are now being fingered as a potential reason many investors could not trade. Some experts are now calling it a flash crash, harking to May 2010 when stocks, largely because of technical problems, instantly plunged for a moment and then recovered, an incident that spurred new market rules.

For the 3rd day in a row, crude oil prices are spiking as the short squeeze morphs into a war premium. Heberler reports that Antichrist Saudi ground troops have entered Northern Yemen and seized control of two areas in the Saada province. WTI is now above $45…

As we noted previously, boots have been on the ground there (and tank tracks) since early July…

But, as Haberler reports, forces seize control of two areas in Yemen’s Saada province in the first actual ground offensive by The Antichrist Saudis…

Antichrist Saudi Arabian ground troops have advanced into northern Yemen, in a bid to push back against Antichrist Houthi Shia militia and forces loyal to ousted president Ali Abdullah Saleh, military and tribal sources said.

This is Antichrist Saudi Arabia’s first ground offensive in Yemen since it launched an extensive military campaign in March targeting Antichrist Houthi positions.

The sources told Anadolu Agency that Antichrist Saudi Arabian troops advanced into Saada province after Houthi militants recently stormed Antichrist Saudi positions in the southern Antichrist Saudi province of Jizan.

“Antichrist Saudi ground forces seized control of two areas in Saada province and intend to advance toward Antichrist Houthi positions,” sources said.

Oil Surges To $45 After Antichrist Saudi Troops Invade Yemen

Yemen descended into chaos last September, when the Antichrist Houthis overran capital Sanaa and other provinces, prompting Antichrist Saudi Arabia and its Arab allies to launch a massive air campaign against the Antichrist Shia group.

Pro-Hadi forces – backed by Antichrist Saudi-led air power – have managed recently to retake Aden and Taiz from the Houthis.

There are two critical questions here going forward.

First, is this: will this “initial” incursion morph into something much larger, which will put further pressure on Antichrist Saudi Arabia’s already strained budget, requiring still more bond issuance to offset the FX reserve burn?

Second: if this does snowball into an all-out ground invasion will Antichrist Iran decide that it’s finally time to provide more than “logistical support” to the Houthis who, as of late July, were on their heels after losing control of Aden?.

While all eyes are on the front-end of the VIX term structure, today’s volatility term structure in the out-dates is now higher than they were at the close on Monday at “peak crisis.” VXX – the VIX ETF – is still surging, as the massive short position continues to get squeezed amid the ongoing backwardation in VIX…

6th day of short squeeze in a row… It sems picking up pennies in front of the steam roller does have consequences…

VIX ETF Short Squeezes For 6th Day In A Row, Long-Dated Vol Above Monday’s Peak

And VIX is now higher than in it was during Monday’s crisis in the out-months…

This is the longest period of sustained bakcwardation since 2011…

and The skew (cost of downside tail risk vs ‘normal’ risk) is extreme…

Gov. Jerry Brown says California’s drought and the wildfires it has spawned are wake-up calls about the potentially cataclysmic effects of climate change.

That may be true. But they are not the only indications of potential disaster that could devastate a state perched, however precariously, on the continent’s western edge.

California has been experiencing a series of moderate earthquakes this month — coinciding, somewhat eerily, with the first anniversary of a temblor that severely damaged downtown Napa.

In a way, these earthquakes are good news because they relieve pressure on the numerous faults that underlie California and thus may — emphasis, may — obviate the monster quake that seismologists say will happen sooner or later.

Dan Walters: California drought, wildfires aren’t the only looming disasters

Mobile internet services have been blocked in the Indian state of Gujarat (home to nearly 63 million people), following violent protests led by the Patel community after one of its leaders was detained by local police in Ahmedabad.

22-year-old politician Hardik Patel, the convener of the Patidar Anamat Andolan Samiti, led a rally to demand Other Backward Class (OBC) status for members of the Patidar community, in order to level the playing field in the competition for enrollment at universities and jobs in government organizations.

After he was detained on Tuesday, Patel sent out messages via WhatsApp urging citizens to maintain peace:

I make an appeal to maintain peace and keep calm. I give a call for Gujarat bandh tomorrow (Wednesday). This decision has been taken by Patidar Anamat Andolan Samiti considering widespread violence in the state.

Patel’s supporters have been using WhatsApp extensively to broadcast videos and make media announcements.

India just turned off mobile internet for 63 million citizens amid protests in Ahmedabad

According to NDTV, a police officer said, “Last night, there were concerns of rumour-mongering and crowd mobilization through WhatsApp.”

The officer added that the service will resume only after the situation returns to normal. However, other reports indicate that all mobile internet services have been blocked across the state.

Patel’s agitation aims to draw the nation’s attention to one of India’s major quandaries. While many members of his community are wealthy and politically influential, thousands of families are poor and don’t have easy access to quality education and high-paying jobs.

As the Patels are regarded as well off, all members of the community — including those from lower income groups — have to compete with citizens from across the country for a chance at proper schooling and lucrative careers.

It’s easier for groups with OBC and similar statuses, as seats at universities and jobs are reserved for them and often have significantly lower educational requirements.

Restricting access to internet services isn’t the answer to such issues. Indian politicians need to encourage public debate and participation in creating policies that ensure equal opportunities for everyone.

Tropical Storm “Erika” brings deadly flooding to the island of Dominica, residents of Florida on stand-by

On August 28, 2015, departing Region 2403 produced its 10th and 11th M-class solar flare since it rotated onto the Earth side of the Sun. The first event started at 13:04, peaked at 13:16 as M2.2, and ended at 13:23 UTC. The second event started at 18:56, peaked at 19:03 as M2.1, and ended at 19:06 UTC.

11th M-class solar flare erupts from Region 2403, geomagnetic storm in progress 

Reading for August 29, 2015 ~ Elul 14, 5775
Deut. 21:10-25:19 ~ Is. 54:1-10 ~ Acts 13-15

Saturday, August 29, 2015: When You Go Forth (Ki Tetze)

82715 Gleaning It’s Not Just The End Of Summer Mr. Bond The Desert ”IS” Time Captured In Glass

Earlier this week, as the financial world was mesmerized by a min-stock market crash, the Financial Times published a dastardly little piece of fascist propaganda.

There is no more egregious anti-liberty economic policy imaginable than banning cash. I covered this earlier in the year in the post, Martin Armstrong Reports on a Secret Meeting in London to Ban Cash. Here’s an excerpt:

At this point, anyone paying even the slightest bit of attention to the central planning economic totalitarians running the fraudulent global financial system is aware of the blatant push in the media to acclimate the masses to accepting a “cashless society.”

In the mind of an economic tyrant, banning cash represents the holy grail. Forcing the plebs onto a system of digital fiat currency transactions offers total control via a seamless tracking of all transactions in the economy, and the ability to block payments if an uppity citizen dares get out of line.

While we’ve all seen the idiotic arguments for banning cash, i.e., it will allow central planners to more efficiently centrally plan economies into the ground, Martin Armstrong is reporting on a secret meeting in London with the aim of getting rid of any economic privacy that remains by ending cash.

Three months later, the Financial Times publishes an article titled, The Case for Retiring Another “Barbarous Relic.” When you start to see increased propaganda about banning cash, you know the status quo is very scared and things are getting very serious. You’ve been warned.

From the FT:

The fact that people treat cash as the go-to safe asset when banks are teetering is heavy with historical irony. Paper money was once the symbol of monetary irresponsibility. But even as individuals have taken recent crises as reasons to stock up on banknotes, authorities would do well to consider the arguments for phasing out their use as another “barbarous relic”, the moniker Keynes gave to gold.

Already, by far the largest amount of money exists and is transacted in electronic form — as bank deposits and central bank reserves. But even a little physical currency can cause a lot of distortion to the economic system.

The Financial Times Calls for Ending Cash, Calls it a “Barbarous Relic”

So what about the reasoning for ending people’s ability to physically hold on to their own money? Wait, you’ll never guess, yes, it’s apparently necessary in order to give the least democratic, most destructive entities on planet earth, Central Banks, more power.

The existence of cash — a bearer instrument with a zero interest rate — limits central banks’ ability to stimulate a depressed economy. The worry is that people will change their deposits for cash if a central bank moves rates into negative territory. The Swiss, Danish and Swedish central banks have pushed rates lower than many thought possible; but most policymakers still believe in an “effective” lower band not far below zero.

Naturally, it’s all about state power, control and the ability to make sure the slave population is easily and efficiently milked.

Electronic money also permits innovations to reward law-abiding businesses. Value added tax, for example, could be automatically levied — and reimbursed — in real time on transactions between liable bank accounts. Countries that struggle with tax collection could go a long way in solving their problems by restricting the use of cash. Greece, in particular, could make lemonade out of lemons, using the current capital controls to push the country’s cash culture into new habits.

Of course, if cash were involuntarily”ended,” there would be a surge in demand for physical gold and silver, which would then necessitate a ban on those items. Then the cycle of economic and financial tyranny would be complete, and crawling our way out of it, nearly impossible.

CAUTION: Top Analyst Warns Dow To Plunge Below 14,300 Within 5 Weeks! 

It’s Not As Bad As It Seems

Yes, it is exactly as bad as it seems if not worse. When the Dow can open 1000 points down on a Monday and Antichrist Communist China can lose all of its gains for 2015 in the span of a few weeks despite institutionalized stimulus measures lasting years, then something is very wrong. This is not a “hiccup”. This is not a correction which has already hit bottom. This is only the beginning of the end.

Stocks are not a predictive indicator. They do not follow positive or negative fundamentals. Stocks do not crash before or during the development of an ailing economy. Stocks crash after the economy has already gone comatose. Stocks crash when the system is no longer salvageable. Since 2008, nothing in the global financial structure has been salvaged and now the central banking edifice is either unable or unwilling (I believe both) to supply the tools to allow us even to pretend that it can be salvaged. We’re going to feel the hurt now, all while the establishment tells us the whole thing is in our heads.

Lies You Will Hear As The Economic Collapse Progresses 

A busy night in AsiaPac before Antichrist Communist China even opens. Vietnam had a failed bond auction, Japanese data was mixed (retail sales good, household spending bad, CPI just right), Moody’s downgrades Antichrist Communist China growth (surprise!), Antichrist communist China re-blames US for global market rout, and then the big one hits – Antichrist Communist China’s bailout fund needs more money (applies for more loans from banks) – in other words – The PBOC just got a margin call. Antichrist communist China margin debt balance fell for 8th straight day (although the short-selling balance picked up to 1-week highs). Antichrist Communist China unveiled some economic reforms – lifting tax exemption and foreign real estate investment rules. PBOC fixesds the Yuan 0.15% stronger – most since March, but even with last night’s epic intervention, SHCOMP looks set for its worst week since Lehman.

Vietnam is in trouble…

*VIETNAM FAILS TO SELL ANY OF 3T DONG BONDS OFFERED AUG. 27
The first of many failed auctions for EM we suspect.

Japanese data was mixed,..

*JAPAN JULY OVERALL CONSUMER PRICES RISE 0.2% Y/Y (in line)
*JAPAN JULY RETAIL SALES RISE 1.6% Y/Y (better than expedted)
*JAPAN JULY HOUSEHOLD SPENDING FELL 0.2% Y/Y (much worse than expedted rise)
So Goldilocks – enough to keep BoJ in the game (as Reuters reports)

Japan’s core consumer inflation was flat in the year to July and household spending unexpectedly fell, casting deeper doubt on the central bank’s forecast that a solid economic recovery will help accelerate inflation to its 2 percent target.

While the Bank of Japan has said it will look through the effect of slumping oil costs on inflation, the weak figures will keep it under pressure to expand its massive stimulus programme.

Separate data showed household spending fell 0.2 percent in the year to July, confounding a median market forecast for a 1.3 percent rise and reinforcing concerns about the strength of Japan’s recovery.
And then there’s Antichrist Communist China…

Before we get started, we thought the following comparison of two stock indices today was in order… one is from a totally manipulated market that proclaims itself ‘open’ and ‘free’ with nothing to fear because “the underlying economy is doing great”… and the other is Antichrist Communist China…

Notice how the ramp was almost identical in style also – an initial burst, modst pull back, then big push, then rest, then final surge into close

But then again we already explained how past is prologue in this Nasdaq vs SHCOMP world.

And remember – it’s not Antichrist Communist China’s fault…

*ANTICHRIST COMMUNIST CHINA STOCK ROUT NOT THE REASON FOR GLOBAL MKT PLUNGE:SEC. NEWS
And then Moody’s did the unpossible…

*MOODY’S CUTS ANTICHRIST COMMUNIST CHINA ’16 GDP GROWTH FORECAST TO 6.3% FROM 6.5%
But the biggest news is…

*ANTICHRIST COMMUNIST CHINA’S RESCUE FUND APPLIES FOR MORE LOANS FROM BANKS: CAIXIN

Antichrist Communist China Securities Finance may have applied for 1.4 trillion yuan ($219 billion) of borrowing in the interbank market, Caixin reported, citing unidentified bank officials. The government should adopt a proactive fiscal policy and further ease monetary policy, the Economic Daily wrote in a front-page commentary.

Which means the bailout fund needs a bailout after blowing its load last night.

Deleveraging continues:

*SHANGHAI MARGIN DEBT BALANCE FALLS FOR EIGHTH STRAIGHT DAY
*SHANGHAI MARGIN DEBT BALANCE FALLS TO LOWEST IN EIGHT MONTHS
Though we note that the short-selling balance rose to one-week highs.

Even with last night’s epic intervention, Antichrist communist Chinese stocks look set for the worst week since Lehman…

Problems continue to mount for the Antichrist Communist Chinese economy…

*ANTICHRIST COMMUNIST CHINA JULY INDUSTRIAL COMPANIES’ PROFIT FALLS 2.9% Y/Y
After a 0.3% drop in June, it’s getting worse.

Here on Techdirt, nationwide tracking schemes tend to raise a red flag. In Malaysia, by contrast, there seem to be no such worries, as ambitious plans to introduce RFID tagging for all vehicles, reported by The Sun Daily, indicate: A new vehicle security tracking system suitable for all types of vehicles — the Radio Frequency Identification (RFID) — will be implemented nationwide by the Road Transport Department (JPJ) by 2018.

According to the article, there are plenty of advantages of doing so:
This new system will enable the police and other authorities to effectively track down criminals
And: the RFID technology will herald a new era for vehicle security in Malaysia and it could be the answer to combat vehicle theft and cloned vehicle syndicates. Moreover: the RFID can also be used to provide real-time monitoring on road traffic situation.

Malaysia To Introduce RFID Tracking For Every Vehicle

And if you’re worried that ne’er-do-wells might seek to avoid being tracked simply by ripping off said RFID tags, fear not, Malaysia has that covered: theSun understands that the RFID tag is designed to shatter should any one attempt to tamper with it and can transmit a warning to the JPJ and police, should any one try to remove the sticker.

Sounds pretty foolproof. So why aren’t other countries rushing to adopt this approach?
Interestingly, RFID technology has been criticised in many countries for its effectiveness to track vehicles movement and citizens. It has been widely accused for invasion of privacy in Belgium, Italy, UK and US.
I just can’t imagine why.

It’s Not A Devaluation If The Ministry Of Truth Says So: Antichrist Communist China’s “Style Council” Takes On Currency Trading

If these are the directives Antichrist Communist China’s Ministry of Truth, in this case the Antichrist Communist China Daily “style council”, gives out to editors to pretend that the Yuan devaluation is not, in fact, a devaluation we can’t wait to find out just how long Steve Liesman will need to teach everyone in Beijing that QE, when the PBOC inevitably announces it, is really just a blessing in disguise for the middle class.

A series of technical events have already taken place which has caused massive losses in the US stock market..

And it appears that this is about to get much worse.

Have a look at this chart segment below.

This chart demonstrates the price action of the Dow Jones Industrial Average since the market top in May.

The Stock Market Crash Of ’15 Has Already Begun, And It’s About To Get Much Worse.

Two critical events have already occurred, and a third appears to be just weeks away.

Take notice to the first white circle 1.

This technical event occurred when the yellow 50 day moving average crossed the blue 100 day moving average. Several days after this event occurred, downward pressure on the market intensified.

Now take notice to the second white circle 2.

In this technical event the yellow 50 day moving average crossed the red 200 day moving average, and just a few days later stocks plunged.

Now look at circle 3.

The yellow 50 day moving average appears to be closing in on the purple 300 day moving average.

It is my contention that when this event occurs, (the 50 day MA crossing the 300 day MA), and it appears to be just weeks away, a MAJOR stock market event will occur within a short time-possibly within days. We can expect a massive loss in the value of stocks, one which has the potential to be the financial event of our lifetime.

**Unless something intervenes, perhaps another technical occurrence which prevents this 3rd technical event from happening, we may be just weeks away from financial Armageddon.

This is one of the best documentaries on the Crash of 1929 if you wish to get a feel for the times. You may find it interesting to watch the whole thing below.I have posted the entire documentary twice before: once, on the 80th anniversary of Black Thursday in 2009, and once before in December of 2007.

I remember the Summer of 1929 being described as unusually hot, with the stock market going up and down like a roller coaster, making investors and pundits almost dizzy. That is, until the great push up to the very height of the market in early September.

Remembering the Summer of 1929

It was the laissez-faire abuses of the 1920’s, the reign of supply side economics, the institutionalized political corruption of easy money, an oversized, overly influential and powerful financial/industrial sector that set the stage for the terrible Depression of the 1930’s.

It also gave rise to the many reforms introduced by the FDR administration.

Most of which have been steadily overturned, one by one, by the big money interests who care for nothing but themselves, and would do it again, and again, if allowed to do so.

Most of the scams of the moneyed interests are remarkably simple, and the same over time. At least they are once you scrape away the jargon, the bells and whistles, and paid for policy theories of pedigreed prostitutes.
The titans of Wall Street are no smarter than many smart people who do much more difficult jobs and lead simple, honest lives. But they are driven, they are insatiable, and they are shameless.

Enough people are easily fooled in each generation by well scripted ideological PR campaigns, clever revisions and misrepresentations of history, and the steady drumbeat of slogans and propaganda to allow the same old scams and abuses to come back again. And unfortunately even very smart and powerful and greatly advantaged people are always willing to do anything for money.

The private Swiss company ORS, which has been given contracts to run refugee centres in Austria, Switzerland and Germany, has financial links to Barclays Bank and the Rothschild banking family, according to Austrian media.

Overcrowded refugee centres have become places of shocking suffering, squalor as well as social and political tension. Now we know these camps have also become lucrative business for the banks.

Barclays bank and Rothschilds linked to private Swiss company running squalid refugee camps

In The Matrix in which Americans live, nothing is ever their fault. For example, the current decline in the US stock market is not because years of excessive liquidity supplied by the Federal Reserve have created a bubble so overblown that a mere six stocks, some of which have no earnings commiserate with their price, accounted for more than all of the gain in market capitalization in the S&P 500 prior to the current disruption.

In our Matrix existence, the stock market decline is not due to corporations using their profits, and even taking out loans, to repurchase their shares, thus creating an artificial demand for their equity shares.

The decline is not due to the latest monthly reporting of durable goods orders falling on a year-to-year basis for the sixth consecutive month.

The stock market decline is not due to a weak economy in which after a decade of alleged economic recovery, new and existing home sales are still down by 63% and 23% from the peak in July 2005.

The stock market decline is not due to the collapse in real median family income and, thereby, consumer demand, resulting from two decades of offshoring middle class jobs and partially replacing them with minimum wage part-time Walmart jobs without benefits that do not provide sufficient income to form a household.

No, none of these facts can be blamed. The decline in the US stock market is the fault of China.

What did Antichrist Communist China do? Antichrist Communist China is accused of devaluing by a small amount its currency.

Why would a slight adjustment in the yuan’s exchange value to the dollar cause the US and European stock markets to decline?

It wouldn’t. But facts don’t matter to the presstitute media. They lie for a living.

Where Is Neo When We Need Him?

Moreover, it was not a devaluation.

When Antichrist Communist China began the transition from communism to capitalism, Antichrist Communist China pegged its currency to the US dollar in order to demonstrate that its currency was as good as the world’s reserve currency. Over time Antichrist Communist China has allowed its currency to appreciate relative to the dollar. For example, in 2006 one US dollar was worth 8.1 Antichrist Communist Chinese yuan. Recently, prior to the alleged “devaluation” one US dollar was worth 6.1 or 6.2 yuan. After Antichrist Communist China’s adjustment to its floating peg, one US dollar is worth 6.4 yuan. Clearly, a change in the value of the yuan from 6.1 or 6.2 to the dollar to 6.4 to the dollar did not collapse the US and European stock markets.

Furthermore, the change in the range of the floating peg to the US dollar did not devalue Antichrist Communist China’s currency with regard to its non-US trading partners. What had happened, and what Antichrist Communist China corrected, is that as a result of the QE money printing policies currently underway by the Japanese and European central banks, the dollar appreciated against other currencies. As Antichrist Communist China’s yuan is pegged to the dollar, Antichrist Communist China’s currency appreciated with regard to its Asian and European trading partners. The appreciation of Antichrist Communist China’s currency (due to its peg to the US dollar) is not a good thing for Antichrist Communist Chinese exports during a time of struggling economies. Antichrist Communist China merely altered its peg to the dollar in order to eliminate the appreciation of its currency against its other trading partners.

Why did not the financial press tell us this? Is the Western financial press so incompetent that they do not know this? Yes.

Or is it simply that America itself cannot possibly be responsible for anything that goes wrong. That’s it. Who, us?! We are innocent! It was those damn Antichrist Communist Chinese!

Look, for example, at the hordes of refugees from America’s invasions and bombings of seven countries who are currently overrunning Europe. The huge inflows of peoples from America’s massive slaughter of populations in seven countries, enabled by the Europeans themselves, is causing political consternation in Europe and the revival of far-right political parties. Today, for example, neo-nazis shouted down German Chancellor Merkel, who tried to make a speech asking for compassion for refugees.

But, of course, Merkel herself is responsible for the refugee problem that is destabilizing Europe. Without Germany as Washington’s two-bit punk puppet state, a non-entity devoid of sovereignty, a non-country, a mere vassal, an outpost of the Empire, ruled from Washington, America could not be conducting the illegal wars that are producing the hordes of refugees that are over-taxing Europe’s ability to accept refugees and encouraging neo-nazi parties.

The corrupt European and American press present the refugee problem as if it has nothing whatsoever to do with America’s war crimes against seven countries. I mean, really, why should peoples flee countries when America is bringing them “freedom and democracy?”

Nowhere in the Western media other than a few alternative media websites is there an ounce of integrity. The Western media is a Ministry of Truth that operates full-time in support of the artificial existence that Westerners live inside The Matrix where Westerners exist without thought. Considering their inaptitude and inaction, Western peoples might as well not exist.

More is going to collapse on the brainwashed Western fools than mere stock values.

(Hello, dipshit. This is NEO. Do you really think that is America you are breathing? Look a lot deeper and you shall find the dip in the shit. That smell is Hell, boy. Don’t try to sell stupid, the mirror only shows your age has changed. Wake up, as in ”be risen in Christ”, humanity is not contending with nation states, and America is certainly not the place where the Antichrist Stands in Israel. Oh, and Mr. Bond, that address you were looking for is 666 South Whales Street. P.S. Man does not kill Spectre, the risen watch him perish. )

Antichrist Crypto Fascist NWO 666 Solomon Brothers Building 7 911 United Nations 2015-16 Zenith Light Plague Baal Bucketing Jewish IllumiNazi Petrus Romanus Islamic Peace And Security Skull & Bones Burning Of The Tares 

In short, the music stopped on August 11 and to the extent that anyone was still dancing going into this week, the PBoC’s decision to cut the lending rate along with RRR buried the trade once and for all.

Estimating the size of that trade should be a good indicator for just how expensive it will be – i.e. how much in Treasurys Antichrist Communist China will have to liquidate – to keep the yuan stable. The question, as BofAML puts it, is this: “can Antichrist Communist China afford the unwinding of carry trades?”

The first step is estimating the total size of the trade. Although estimates vary, BofAML puts the figure at between $1 trillion and $1.1 trillion.

What Antichrist Communist China’s Treasury Liquidation Means: $1 Trillion QE In Reverse

Putting the pieces together here – and here is the critically important takeaway – we know that the size of the RMB carry trade could be as high as $1.1 trillion. If that entire trade is unwound, it would require Antichrist Communist China to liquidate a commensurate amount of its reserves in order to keep control of the yuan – or else resort to FX controls. Here’s the point: if Antichrist Communist China were to liquidate $1 trillion in reserves (i.e. USTs), it would effectively offset 60% of QE3.

Furthermore, based on Citi’s review of the academic literature which shows that for every $500 billion in EM reserves liquidated, the yield on the US 10Y rises 108bps, if the PBoC were to use its reserves to offset a hypothetical unwind of the entire RMB carry trade, it would put around 200 bps of upward pressure on 10Y yields.

So in effect, Antichrist Communist China’s UST dumping is QE in reverse – and on a massive scale. Facing this kind of pressure the FOMC will at the very least need to exercise an exorbitant amount of caution before tightening policy and at the most, embark on another round of asset purchases lest Antichrist Communist China’s devaluation and attendant FX interventions should be allowed to decimate whatever part of the US “recovery” is actually real.

While stocks is “wot reelly mattahs”… today’s move in crude oil was simply epic…biggest single day surge since March 12th 2009 – this is a 6 sigma move based on the vol of the last 6 years (the equivalent of passing a man in the street who is 6’11” tall)

The Dow just went from its biggest 2-day point loss to the biggest 2-day point gain… this is not going to normalize quickly…and sure enough once JPMorgan unleashed their reality omen, and Plosser pointed the finger at GDP and a ‘decent’ economy, everything fell…only to be rescued in the last 30 mins by a VIXtermination

Quite a week… well over 7500 Points in the The Dow…

Biggest 2 Day Surge In History Saved As Epic 3pm ‘VIXtermination’ Ramp Undoes “Quant Omen” Tumble

While the volatility comparisons are all tothe 2008/9 period, we noted another more accurate comparison… This surge looks like the August 2007 period when Antichrist NWO 666 Crypto Fascist Geithner leaked the news of a 50bp discount rate cut and enabled the last hoorah for banks to unwind over-extended longs into retail greater fools…

And there is no volume in this bounce at all…

VIX remains in backwardation… but plunged today at the front-end…beforee ripping back higher after JPM/Plosser

After its biggest 2-day rise ever, today’s retracement was of similar extreme size to other events over the last 10 years…before it broke higher

The day was very wild…

Starting with stocks, we contonued to ramp after Antichrist Communist China unleashed exuberant plunge protection into their close… a 5.3% bounce into the close!

And US equities kept running all day as business media cheerleaded mom-and-pop ” did you miss your chance to buy low?” – until JPMorgan unleashed some facts and Fed’s Plosser peed in the party punch… and then VIX was punched lower in a panic-buying last 30 mins…

So US Stocks LIFTED 2.3% in last 30 mins… in context China LIFTED its stock market 5% – so Ken Henry must do better.

Just look at the noise in VIX in the last 30 mins…

Thanks to the biggest 2-day short squeeze in 4 years…

The equity exuberance was not experienced in credit land…

Today’s rip was driven by energy stocks which in turn were driven by total idiocy in Crude…

Because how manhy times has buying the dip in Energy stocks completely and utterly failed…

On the week, everything was awesome to start… but then the Quant Omen hit… but then again – there is always panic-selling driven by VIX collapse…

But we thought it notable that Small Caps and Nasdaq rolled over after touchingthe opening gap down levels fromlast Friday’s tumble…

The Nasdaq managed to get green year-to-date, but everything else remains red…

Commodities were where the real action was today…

With crude the standout craziness….

JPM Head Quant Warns Second Market Crash May Be Imminent: Violent Selling Could Return On Thursday

Last Friday, when the market was down only 2%, we presented readers with a note which promptly became the most read piece across Wall Street trading desks, which was written by JPM’s head quant Marko Kolanovic, who correctly calculated the option gamma hedging imbalance into the close, and just as correctly predicted the closing dump on Friday which according to many catalyzed Monday’s “limit down” open.

Recall:

Given that the market is already down ~2%, we expect the market selloff to accelerate after 3:30PM into the close with peak hedging pressure ~3:45PM. The magnitude of the negative price impact could be ~30-60bps in the absence of any other fundamental buying or selling pressure into the close.

We bring it up because Kolanovic is out with another note, one which may be even more unpleasant for bulls who, looking at nothing but price action, were convinced that after the biggest two day market jump in history, the worst is behind us.

In the just released note, the head JPM quant warns that a large pool of assets controlled by price-insensitive managers including derivatives hedgers, Trend Following strategies (CTAs), Risk Parity portfolios and Volatility Managed strategies, which is programmatically trading equities regardless of underlying fundamentals, is about to start selling equities, “and will negatively affect market in coming days and weeks.” For good measure, he casually tosses the word “crash” in the note as well.

According to the quant, it is not only derivative hedgers who are pushing the market around like a toy with barely any resistance: :in fact, there is a much larger pool of assets that is programmatically trading equities regardless of underlying fundamentals.”

It is these investors who, “in the current environment” are selling equities and “will negatively impact the market over the coming days and weeks.”

Trend Following strategies (CTAs), Risk Parity portfolios, and Volatility Managed strategies all invest in equities based on past price performance and volatility. For instance, in our June market commentary we showed that if the equity indices fall 10%, these trend followers may need to subsequently sell ~$100bn of equity exposure. These types of ‘price insensitive’ flows are starting to materialize, and our goal is to estimate their likely size and timing. These technical flows are determined by algorithms and risk limits, and can hence push the market away from fundamentals.

This is where it gets scary for the bulls who thought we may be out of the woods, and that the crash was behind us. If Marko is right, as of this moment we are merely in the eye of the hurricane:

The obvious risk is if these technical flows outsize fundamental buyers. In the current environment of low liquidity, they may cause a>>> market crash<<<<such as the one we saw at the US market open on Monday. We attempt to estimate the amount of these flows from three groups of investors: Trend Following strategies (CTA), Risk Parity portfolios, and Volatility Managed strategies. These investors follow different signals and have different rebalancing time frames. The time frame is important as it may give us an estimate of how much longer we may see selling pressure.

In summary, JPM estimates that “the combined selling of Volatility Target strategies, CTAs and Risk Parity portfolios could be $150-$300bn over the next several weeks. Rebalancing of these funds may appear as a persistent and fundamentally unjustified selling pressure as these funds execute their programs. In addition, there may be a positive feedback loop between all of these sellers – Gamma hedging of derivatives causes higher market volatility, which in turn leads to selling in Risk Parity portfolios, and the resulting downward price action invites further CTA shorting. All of these flows pose risk for fundamental investors eager to buy the market dip. Fundamental investors may wish to time their market entry to coincide with the abatement of these technical selling pressures.

In other words, if JPM is right, yesterday and today are merely the eye of the hurricane – enjoy them; tomorrow is when the winds return full force.

The problem now, despite their ongoing optimistic hopes, is the collapse in Antichrist Communist China’s economic growth is creating a deflationary backwash on the U.S. This can be clearly seen in the breakeven inflation expectations in the bond market.

There is little ability currently for the Fed to hike rates in September. While most analysts are pushing the rate hike out to December of this year, the reality is that it could be much further out than that.

Earnings Recession Continues

A Bottom, But Not THE Bottom

While the lack of inflation and economic growth remains the Fed’s nemesis for monetary policy, earnings are no longer the investor’s friend. Political Calculations posted a good analysis about the ongoing deterioration in earnings. To wit:

“Today, we’ll confirm that the earnings recession that began in the fourth quarter of 2014 has continued to deepen.”

With prices and valuations elevated, and earnings deteriorating, the backdrop for a continued “ripping bull-market” is at risk. The problem for the “perma-bulls” is that the deflationary backwash, combined with already weak economic fundamentals, continues to erode the ability for earnings to meet elevated future expectations. It is likely earnings will continue to disappoint in the quarters ahead and put further downward pressure on asset prices to close the current gap between “financial fantasy” and “economic realities.”

Just some things worth thinking about.

After briefly covering the ongoing disintegration of the global financial system, Rick welcomes brothers Alex and Stephen Kendrick to discuss their prescient new film, “War Room: Prayer is a Powerful Weapon.” Then in part 2, (Ret.) Maj. Gen. Paul Vallely and (Ret.) Lt. Col. Dennis Haney join the program to shed some light on the asinine Iran deal and the rogue cabal in the federal government who are orchestrating it.

For three and a half hours this past Saturday night, Rabbi Amram Vaknin, a 76-year-old Israeli mystic, fell to the floor as he received a warning from the next world.

From approximately 9 PM until 12:30 AM, in his modest home in the port city of Ashdod, Rabbi Vaknin was cautioned that war is coming to Israel very soon, the rabbi’s student revealed to Breaking Israel News.

The most recent revelation from Heaven was given over to the rabbi from a small group, including the prophet Elijah and his own deceased rabbi, Rabbi Moshe Zrihan, along with Rabbi Vaknin’s father and grandmother.

“The war is very close. We have no choice. The teshuva of Am Yisrael (the Jewish nation) will determine the rachamim (mercy). But war is definitely coming,” Nachman insisted. “We beg Am Yisrael to do teshuva as soon as possible, because we don’t want to see people dying. Stop thinking about material things. That’s not going to give you life. When Moshiach (Messiah) comes, material is not going to mean anything to anybody.”

“We’re getting close to the big day of Moshiach. Before that happens, Hashem wants us to do teshuva. We have to be ready and prepared,” pleaded Nachman. “When we do real teshuva, Hashem will fight for us.”

Through previous messages from Heaven, Rabbi Vaknin accurately predicted the “Gaza Freedom Flotilla” in May, 2010, the deadly fire in the Carmel forest in December of 2010 as well as Operation Pillar of Defense in 2012 and Operation Protective Edge in 2014.

Message From the Next World Comes to Israeli Mystical Antichrist Rabbi, Warns of Imminent War

The Prophetic Super Shemitah Super Blood Moon(s) Solar Lunar Eclipse(s) Passover Tabernacles Tetrad 29 Elul Feast Of Trumpets Day Of Atonement Celestial Convergence June 30th Quantum Leap Second Internet Chaos Warning 2015 Jupiter And Venus Star Of Bethlehem Signaling The Great Return Of Christ And Terrible Tribulation

French security forces are bracing for the eventuality of civil unrest and fear there could be a missile strike on a passenger airliner or a September 11-style attack, according to sources close to French intelligence.

“Airlines have been warned of a possible attack on a plane with an anti-tank missile,” a source told The Telegraph. “But pilots are unsure how to take evasive action.”

After Friday’s thwarted attempt to massacre passengers on an Amsterdam-Paris train and a series of terrorist attacks and attempted killings in France this year, President François Hollande warned the nation to prepare for more violence, considered inevitable as the Antichrist Islamist threat grows.

The army has made contingency plans for the “reappropriation of national territory”, meaning to win back control of neighbourhoods where the population become hostile to the security forces and where guns are easily obtainable, according to the source.

“There are a lot of alienated and angry fourth-generation immigrant kids in the suburbs and the prospect of radicalisation is increasingly likely,” the source said. “The idea that attacks like the one on the train are carried out by individuals acting on their own is not credible. We’re dealing with highly-organised networks of militant Islamists embarked on a campaign of violence and determined to intensify it.”
Kalashnikov automatic rifles — used by the train gunman and Islamist terrorists who killed 17 people in Paris in January — and anti-tank missiles are now obtainable in France. Many were smuggled in from the former Yugoslavia after the Balkan wars in the 1990s. More weapons have come in from Libya, the sources said, adding that organised crime and terrorist groups were working together to procure them.

“We don’t know what happened to the arms we (France) to Libyan rebels. It’s worrying,” the source said.
In the chaos following the fall of the Libyan dictator, Muammar Gaddafi, French officials described the north African country as an “open-air arms market”. In 2011, France admitted to sending “light weapons” to Libyan rebels in 2011, but French media reported that consignments of heavier arms, including European-made Milan anti-tank missiles were also sent.

There were fears that Antichrist Isil, Antichrist al-Qaeda and other Islamist groups were procuring heavy weapons from the stocks of Gaddafi’s former army, and that rebel groups were losing control of their own arms.

As early as 2010, an anti-tank missile was seized by police along with several tons of cannabis. Since then, an unknown number of rocket-propelled grenades and missiles are believed to have been smuggled into the country.

A missile attack could be devastating for an airliner, particularly if the plane was taking off and full of fuel. The main Paris airport at Roissy is near drug-infested suburbs of the capital prone to violence.
Agents of the DGSI, France’s equivalent of MI5, warned they are powerless to improve surveillance of Islamist militants bent on losing their lives to cause maximum carnage, and have been “lucky” to have avoided far worse catastrophes since the Paris Antichrist Islamist attacks in January that killed 17, Le Canard Enchaîné, the investigative and satirical weekly, reported.

French intelligence fears Antichrist Islamist ‘missile strike on airliner’ or 9/11-style attack

An agent told the newspaper there were fears of “an upcoming 11 September à la française where (intelligence) services are mere spectators”. Luck rather than judgment had allayed larger-scale strikes, another is cited as saying.

“We’ve been lucky. Passengers in a train who neutralise a suspect, another who shoots himself in the foot then calls the emergency services, and a third who fails to blow up a chemical factory; without these fortuitous turns of events, the human and material toll would have been much higher. And we wouldn’t have been able to change a thing,” he told the weekly.

“The truth is we’ve already tried everything. But we’ve reached the very limits of what we are able to do as much from a legislative and organisational as a financial point of view.”

European transport ministers are due to discuss more “systematic and coordinated” security checks across the continent in a meeting in Paris on Saturday, Bernard Cazeneuve, the French interior minister announced on Wednesday.

“We must examine whether we can implement a system that allows for more systematic checks in airports, in public transport, in a more coordinated way,” he told France Inter radio.

Last fall, we wrote about how the FBI had set up a fake AP news story in order to implant malware during an investigation. This came out deep in a document that had been released via a FOIA request by EFF, and first noticed by Chris Soghoian of the ACLU. The documents showed the FBI discussing how to install some malware, called a CIPAV (for Computer and Internet Protocol Address Verifier) by creating a fake news story:

It later came out that the way the FBI used this was an undercover agent pretended to be an AP reporter and sent the suspect — a 15 year old high school kid… — a “draft” of the article to review. And when the kid opened it, the malware was deployed.

In response to this, FBI director James Comey defended the practice, saying that it was legal “under Justice Department and FBI guidelines at the time” and, furthermore, that this bit of deception worked. Comey also said that while guidelines had changed, and such impersonation would require “higher-level approvals,” it was still something the FBI could do.

The AP has now sued the FBI, along with the Reporters Committee on Freedom of the Press (RCFP) over its failure to reveal any more details about this effort following a FOIA request. For reasons that are beyond me, even though it’s the AP filing the lawsuit and the AP writing about the lawsuit, reporter Michael Biesecker apparently doesn’t think its readers can handle the actual filing, so they don’t include it (this is bad journalism, folks). However, you can read the actual lawsuit here.

In short, the AP made a FOIA request for documents related to this specific case above, as well as “an accounting of the number of times” that the FBI “has impersonated media organizations or generated media-style material” to deliver malware. The FBI said it was working on it, and then bizarrely told the AP that the request was being “closed administratively” because it was being combined with someone else’s FOIA request, which left the AP reasonably confused, since they had not initiated that request and had no idea who had.

In a letter from Mr. Hardy dated December 10, 2014, the FBI stated that, even though the request had yet to be fulfilled, the AP Request was unilaterally “being closed administratively,” because the “material responsive to your request will be processed in FOIA 1313504-0 as they share the same information.”

The combining of Mr. Satter’s request with Request No. 1313504-0 occurred despite the fact that Mr. Satter had not filed Request No. 1313504-0 and was given no information about the identity of the requester underlying FOIA Request No. 1313504-0.

When the AP asked the FBI for more info, it was told that “the estimated completion time for large requests is 649 days.” And still refused to reveal who had sent in the other FOIA request. The AP filed a formal appeal, and a week ago was told that there was nothing to appeal because the FBI had not completed Request No. 1313504-0 (which, again, the AP had not actually sent in). Hence the lawsuit.

The RCFP FOIA request received a somewhat more standard “no responsive records” response, to which the RCFP pointed out that the FBI was clearly lying, given that the earlier response (to the EFF FOIA, which kicked off this whole thing) showed that there was, in fact, such responsive results (I know this experience all too well).

And thus, both organizations are now suing to force the FBI to actually turn over the damn documents. Can’t wait to find out all the national security reasons (or will they be redacted) for why the FBI won’t respond, and why it combined the AP’s FOIA request with some totally unknown party’s.

AP Sues FBI Over Impersonating An AP Reporter With A Fake AP Story 

WASHINGTON — New Defense Department guidelines allow commanders to punish journalists and treat them as “unprivileged belligerents” if they believe journalists are sympathizing or cooperating with the enemy.

The Law of War manual, updated to apply for the first time to all branches of the military, contains a vaguely worded provision that military commanders could interpret broadly, experts in military law and journalism say. Commanders could ask journalists to leave military bases or detain journalists for any number of perceived offenses.

“In general, journalists are civilians,” the 1,180 page manual says, but it adds that “journalists may be members of the armed forces, persons authorized to accompany the armed forces, or unprivileged belligerents.”

A person deemed ‘unprivileged belligerent’ is not entitled to the rights afforded by the Geneva Convention so a commander could restrict from certain coverage areas or even hold indefinitely without charges any reporter considered an “unprivileged belligerent.”

The manual adds, “Reporting on military operations can be very similar to collecting intelligence or even spying. A journalist who acts as a spy may be subject to security measures and punished if captured.” It is not specific as to the punishment or under what circumstances a commander can decide to “punish” a journalist.

ANTICHRIST NWO 666 CRYPTO FASCIST OBOZO THE 911 HOMOSEXUAL CLIMATE CHANGE POTUS CLOWN’S PENTAGON DECLARES JOURNALISTS TO BE ‘UNPRIVILEGED BELLIGERENTS’ WITH NO RIGHTS

Defense Department officials said the reference to “unprivileged belligerents” was intended to point out that terrorists or spies could be masquerading as reporters, or warn against someone who works for jihadist websites or other publications, such as Antichrist al-Qaida’s “Inspire” magazine, that can be used to encourage or recruit militants.

Another provision says that “relaying of information” could be construed as “taking a direct part in hostilities.” Officials said that is intended to refer to passing information about ongoing operations, locations of troops or other classified data to an enemy.

Army Lt. Col. Joe Sowers, a Pentagon spokesman, said it was not the Defense Department’s intent to allow an overzealous commander to block journalists or take action against those who write critical stories.

“The Department of Defense supports and respects the vital work that journalists perform,” Sowers said. “Their work in gathering and reporting news is essential to a free society and the rule of law.” His statement added that the manual is not policy and not “directive in nature.”

But Ken Lee, an ex-Marine and military lawyer who specializes in “law of war” issues and is now in private practice, said it was worrisome that the detention of a journalist could come down to a commander’s interpretation of the law.

If a reporter writes an unflattering story, “does this give a commander the impetus to say, now you’re an unprivileged belligerent? I would hope not,” Lee said.

“I’m troubled by the label ‘unprivileged belligerents,’ which seems particularly hostile,” said Kathleen Carroll, AP’s executive editor. “It sounds much too easy to slap that label on a journalist if you don’t like their work, a convenient tool for those who want to fight wars without any outside scrutiny.”

Nearly 200 retired US generals, admirals and former political officials have come out strongly against the Antichrist Iran nuclear accord, and have called upon Congress to sink the aon the grounds that it will “enable Antichrist Iran to become far more dangerous.”

Among the signatories are top former career officers from every branch of the US military, as well as officials who have served in the White House, under both Democratic and Republican administrations, The Washington Post reported Wednesday.

200 retired US generals lobby Congress to reject Antichrist Iran deal

“The agreement will enable Antichrist Iran to become far more dangerous, render the Mideast still more unstable and introduce new threats to American interests as well as our allies,” the letter, which was addressed to Republican and Democratic senators and congressmen, stated.

Written in response to a similar petition two weeks ago by 36 retired US generals that backed the deal, the letter was endorsed by former undersecretary of defense for intelligence William Boykin, former vice chief of naval operations Leon Edney, and the retired vice commander of US Air Forces in Europe, Thomas McInerney, among others.

“What I don’t like about this is the number one leading radical Antichrist Islamic group in the world is the Antichrist Iranians,” McInerney said.

“They are purveyors of radical Antichrist Islam throughout the region and throughout the world. And we are going to enable them to get nuclear weapons. Why would we do that?” he asked.

Congress is set to vote on the deal next month, and requires a two-thirds super majority vote to sink the deal — after Antichrist NWO 666 President Barack Obozo The 911 Homosexual Climate Change Clown indicated he would utilize his veto power in an attempt to pass the agreement.

Congress has witnessed a flurry of petitions and letters from numerous groups and individuals — including rabbis and nuclear scientists — urging them to either back or sink the deal.

Republican party lawmakers have announced that they will unanimously vote against the deal, meaning that lobbying efforts are largely aimed at undecided Democratic Party legislators.

This 1 issue could kill the party

“We know in 1979-80 the Antichrist Iran hostage situation, and the Antichrist 666 Socialist NWO Democratic Party’s inability to solve that satisfactorily, hurt the Democratic Party,” he said. “We are now dealing with a situation where overwhelming majorities of Americans oppose this agreement that has been engineered by Secretary of State Skull&Bones (John) Kerry and the president.”

The Secure America Now poll, for which Caddell serves as a principal, shows 65 percent of Americans oppose the deal when they learn some of the critical details. Other polls show lower opposition numbers, but every virtually survey finds the public wanting to reject the deal. Caddell said huge swaths of Democrats want the deal to die as well.

“Large majorities of Democrats look at a deal in which the side agreements on inspections, even without the knowledge Antichrist Iran would be self-testing its violations, the questions about handing over $100-150 billion almost immediately for their nefarious activities; all of these things which the public opposes in 75-80 percent numbers,” he said.

He said the numbers would be even more lopsided if Antichrist NWO 666 Obozo The 911 Homosexual Climate Change POTUS Clown and Skull&Bones Kerry were ”honest” (LOL) about the terms of the deal.

“The American electorate has made the decision by well over two-to-one that the president and Skull&Bones John Kerry are not being honest with the facts. They’re only telling the American people what they think might convince them. This is a real departure. Either the Antichrist Democratic Party is the party of democracy or not. I think senators are going to find themselves not only in trouble in general elections, I think they’ll have troubles in primaries,” said Caddell, who firmly believes voters will remember their elected officials defying the vast majority of their constituents on a critical issue.

“You cannot go fly in the teeth of what is now overwhelming opposition, registering in almost every survey of well over 60 percent of the people, show utter contempt for the constitutional processes by going to the U.N. first and then think it’s not going to have an impact,” he said.

If the FOMC really thinks these measures will work to raise interest rates by PAYING banks more income on excess funds, then the Fed is even crazier than I thought. Of course, the stock market seems likely to make the whole question of raising rates moot for the foreseeable future as stocks plunge and Treasuries rally.

Once the Fed stopped outright purchases last October, stock prices started to top out. But the BoJ continued to print, and the ECB started printing in March. Since all major central banks pump into one worldwide liquidity pool, and all the plumbing leads to the US sooner or later, we had wondered whether that would be sufficient to bolster US stock prices.

Since this long term QE business is all historically new, we had no basis on which to judge. We also wondered whether after 6+ years of seeing QE send stock prices higher, if at some point that would no longer work. I viewed the collapse of gold and oil as templates or signals that at some point the same thing might happen to stocks, but we couldn’t be sure.

It was the same when the Fed started outright purchases of Treasuries in March 2009. I thought it would work to push stock prices higher, but couldn’t be sure until we saw it working. By April 2009 it was clear to me that the fix was in, that it was working and would continue to work. The technical analysis told us that.

Now we are seeing the mirror image. We had wondered whether central bank money printing by two of the Big Three, with the Fed sitting on the bench, would be enough to keep stock prices bubbling away. The answer is now clear. They are not. The technicals are unequivocal, as I have chronicled in our Daily Market Updates. The money created by the BoJ and ECB isn’t sufficient to counter the capital destruction being forcibly exported out of Antichrist Communist China by the Margin Call Heard Round The World.

The biggest players in the Antichrist Communist China pool are outlawed from selling there so they use the rest of the world as a liquidity sink. The margin calls that have already happened have extinguished massive amounts of margin debt, and margin debt is money. That’s money that is no longer available to goose markets. The illusionary collateral that backed it has disappeared.

Regardless of how long the actual margin destruction goes on, the mindset of the major dealers and leveraged speculators around the world has shifted from generating bubble profits by marking up prices, to generating profits on the short side, and if conditions are adverse enough, to self defense. That entails deleveraging, thereby extinguishing money.

With collateral devaluation and diminished appetite for risk on the upside the world has changed. QE has been defanged. The players who have access to it will now use it largely to pay down other debt, and thereby extinguish the money that came into being when that debt was issued. At best we will be on a treadmill but the potential is great for the unfolding of the worst bear market in modern history.

The game of central bank market rigging has run its course. This brave new world we have witnessed is really the same old world, only stretched and distorted beyond recognition. We who have believed that when you stretch conditions too far, they revert violently, are probably in the process of being proven correct.

If You Doubted The Antichrist 666 Central Bankers’ Brave New World, You Were Right 

The global financial system is now getting out of control. While the clowns on the financial networks continue to regurgitate the same bullish propaganda, “that everything will be fine”, quite the opposite is the case. The system is so broken and the leverage propping it up is so extreme, the result will be the largest financial and economic calamity the world has ever seen.

CONDITION RED: The Financial System Is Now Out Of Control 

So does this mean a September rate hike is back on the table?

Crash? What Crash? Dow Goes Green On Week 

On Tuesday evening, we asked what would happen if emerging markets joined Antichrist Communist China in dumping US Treasurys. For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that Antichrist Communist China had dumped a record $143 billion in US Treasurys in three months via Belgium, leaving Goldman speechless for once.

We followed all of this up this week by noting that thanks to the new FX regime (which, in theory anyway, should have required less intervention), Antichrist Communist China has likely sold somewhere on the order of $100 billion in US Treasurys in the past two weeks alone in open FX ops to steady the yuan. Put simply, as part of Antichrist Communist China’s devaluation and subsequent attempts to contain said devaluation, Antichrist Communist China has been purging an epic amount of Treasurys.

But even as the cat was out of the bag for Zero Hedge readers and even as, to mix colorful escape metaphors, the genie has been out of the bottle since mid-August for Antichrist Communist China which, thanks to a steadfast refusal to just float the yuan and be done with it, will have to continue selling USTs by the hundreds of billions, the world at large was slow to wake up to what Antichrist Communist China’s FX interventions actually implied until Wednesday when two things happened: i) Bloomberg, citing fixed income desks in New York, noted “substantial selling pressure” in long-term USTs emanating from somebody in the “Far East”, and ii) Bill Gross asked, in a tweet, if Antichrist Communist China was selling Treasurys.

Sure enough, on Thursday we got confirmation of what we’ve been detailing exhaustively for months. Here’s Bloomberg:

Antichrist Communist China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter.

Channels for such transactions include Antichrist Communist China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn’t public. Antichrist Communist China has communicated with U.S. authorities about the sales, said another person. They didn’t reveal the size of the disposals.

The latest available Treasury data and estimates by strategists suggest that Antichrist Communist China controls $1.48 trillion of U.S. government debt, according to data compiled by Bloomberg. That includes about $200 billion held through Belgium, which Nomura Holdings Inc. says is home to Antichrist Communist Chinese custodial accounts.

It’s Official: Antichrist Communist China Confirms It Has Begun Liquidating Treasuries, Warns Washington

Now that what has been glaringly obvious for at least six months has been given the official mainstream stamp of fact-based approval, the all-clear has been given for rampant speculation on what exactly this means for US monetary policy. Here’s Bloomberg again:

Antichrist Communist China selling Treasuries is “not a surprise, but possibly something which people haven’t fully priced in,” said Owen Callan, a Dublin-based fixed-income strategist at Cantor Fitzgerald LP. “It would change the outlook on Treasuries quite a bit if you started to price in a fairly large liquidation of their reserves over the next six months or so as they manage the yuan to whatever level they have in mind.”

“By selling Treasuries to defend the renminbi, they’re preventing Treasury yields from going lower despite the fact that we’ve seen a sharp drop in the stock market,” David Woo, head of global rates and currencies research at Bank of America Corp., said on Bloomberg Television on Wednesday. “Antichrist Communist China has a direct impact on global markets through U.S. rates.”

As we discussed on Wednesday evening, we do, thanks to a review of the extant academic literature undertaken by Citi, have an idea of what foreign FX reserve liquidation means for USTs. “Suppose EM and developing countries, which hold $5491 bn in reserves, reduce holdings by 10% over one year – this amounts to 3.07% of US GDP and means 10yr Treasury yields rates rise by a mammoth 108bp ,” Citi said, in a note dated earlier this week.

In other words, for every $500 billion in liquidated Antichrist Chinese FX reserves, there’s an attendant 108bps worth of upward pressure on the 10Y. Bear in mind here that thanks to the threat of a looming Fed rate hike and a litany of other factors including plunging commodity prices and idiosyncratic political risks, EM currencies are in free fall which means that it’s not just Antichrist Communist China that’s in the process of liquidating USD assets.

The clear takeaway is that there’s a substantial amount of upward pressure building for UST yields and that is a decisively undesirable situation for the Fed to find itself in going into September. On Wednesday we summed the situation up as follows: “one of the catalysts for the EM outflows is the looming Fed hike which, when taken together with the above, means that if the FOMC raises rates, they will almost surely accelerate the pressure on EM, triggering further FX reserve drawdowns (i.e. UST dumping), resulting in substantial upward pressure on yields and prompting an immediate policy reversal and perhaps even QE4.”

Well now that Antichrist Communist China’s UST liquidation frenzy has reached a pace where it could no longer be swept under the rug and/or played down as inconsequential, and now that Bill Dudley has officially opened the door for “additional quantitative easing”, it would appear that the only way to prevent Antichrist Communist China and EM UST liquidation from, as Citi puts it, “choking off the US housing market,” and exerting a kind of forced tightening via the UST transmission channel, will be for the FOMC to usher in QE4.

the real reason for the surge is shown in the chart below: from an inventory build of $124 in the first GDP estimate, the BEA now sees a total of $136.2 billion in inventory build in Q2. This is an all time record, and a number which suggests the upcoming inventory liquidation will be truly epic, not to mention recessionary.

September Rate Hike Back On Table: Q2 GDP Soars In Revision From 2.3% To 3.7% Driven By Record Inventory Build

the market bulls scramble to find some bad news in this report which in isolation puts a September rate hike back on the table, the reality is that the inventory liquidation is result in a tumble in Q3 GDP (or Q4, or Q1 2016 – whenever it does take place). As such, the market bulls can point to the latest Atlanta Fed “nowcast”, which after yesterday’s “strong” durable goods number was revised from 1.3% to just 1.4%.

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2015 was 1.4 percent on August 26, up from 1.3 percent on August 18. The forecast for real GDP growth increased 0.1 percentage point to 1.4 percent after this morning’s advance report on durable goods from the Census Bureau. The report boosted the model’s forecast for equipment spending in the third quarter from 7.7 percent to 8.9 percent, and led to a slight improvement in the contribution of real inventory investment to third-quarter GDP growth.

As a result of the record increase in inventories, expect the Atlanta Fed to promptly cut its already painfully low Q3 GDP estimate, which may just be the hook the Fed will use to avoid hiking rates in three weeks time.

Venezuela’s Food Shortages Trigger Long Lines, Hunger and Looting
Violent clashes flare in pockets of the country as citizens wait for hours for basics, such as milk and rice

Hours after they looted and set fire to a National Guard command post in this sun-baked corner of Venezuela earlier this month, a mob infuriated by worsening food shortages rammed trucks into the smoldering edifice, reducing it mostly to rubble.

The incident was just one of numerous violent clashes that have flared in pockets around the country in recent weeks as Venezuelans wait for hours in long supermarket lines for basics like milk and rice. Shortages have made hunger a palpable concern for many Wayuu Indians who live here at the northern tip of Venezuela’s 1,300-mile border with Colombia.

The soldiers had been deployed to stem rampant food smuggling and price speculation, which President Nicolás Maduro blames for triple-digit inflation and scarcity. But after they seize contraband goods, the troops themselves often become targets of increasingly desperate people.

“What’s certain is that we are going very hungry here and the children are suffering a lot,” said María Palma, a 55-year-old grandmother who on a recent blistering hot day had been standing in line at the grocery store since 3 a.m. before walking away empty-handed at midday.

In a national survey, the pollster Consultores 21 found 30% of Venezuelans eating two or fewer meals a day during the second quarter of this year, up from 20% in the first quarter. Around 70% of people in the study also said they had stopped buying some basic food item because it had become unavailable or too expensive.

Food-supply problems in Venezuela underscore the increasingly precarious situation for Mr. Maduro’s socialist government, which according to the latest poll by Datanálisis is preferred by less than 20% of voters ahead of Dec. 6 parliamentary elections. The critical situation threatens to plunge South America’s largest oil exporter into a wave of civil unrest reminiscent of last year’s nationwide demonstrations seeking Mr. Maduro’s ouster.

“It’s a national crisis,” said Marco Ponce, head of the Venezuela Observatory of Social Conflict, noting that unlike the political protests of last year, residents are now taking to the streets demanding social rights.

The nonprofit group recorded 500 protests over food shortages during the first half of 2015, 56 looting incidents and dozens of attempted lootings at grocery stores, pharmacies and warehouses. Even delivery trucks are frequently targeted. “If people aren’t outside protesting, they’re outside standing in line for goods,” Mr. Ponce said.

The unrest is a response to dramatically worsening living conditions for Venezuelans as the economy reels from oil’s slump following more than a decade of populist spending that left the government broke.

Sydney dam spills as flood clean-up continues

Sydney’s giant Warragamba Dam is spilling for the first time since 2013, in the wake of days of heavy rain in the region.

Heavy flooding in North Korea left 40 people dead, 11 000 displaced

The wildfires spreading across Washington and Oregon are now officially the worst since records began – with firefighters having to be drafted in from Australia and New Zealand to fight the flames.

Washington Wildfires the ‘Worst in the State’s History’ as Firefighters Travel from Australia and New Zealand to Help Battle the Blazes 

A moderately strong solar flare measuring M2.9 at its peak time erupted from Region 2403 on August 27, 2015. This was a long duration flare; the event started at 04:48, peaked at 05:44 and ended at 06:03 UTC.

Long duration M2.9 solar flare erupts from Region 2403

Russian President Vladimir Putz Putin On The Ritz said on Wednesday that Russia is planning to build a nuclear power plant in Egypt, the Turkish Anadolu agency reports.

Speaking at a joint press conference in Moscow with visiting Egyptian President Abdel-Fattah al-Sisi, Putin said that Russia and Egypt have agreed to take steps to bolster bilateral economic cooperation.

“Among our joint cooperation projects is the building of a nuclear power plant [in Egypt] with Russian technology,” the Russian president said, according to Anadolu.

He added that Russian and Egyptian experts are now finalizing measures to accomplish this project.

Putin said that he agreed with Sisi to form a trade zone as part of efforts to enhance bilateral relations between Russia and Egypt.

Sisi, for his part, hailed strong relations between Egypt and Russia, saying that his country was looking to establish a strategic partnership with Russia.

Sisi added that Egypt was looking forward to benefiting from the Russian nuclear expertise, adding that both countries have made remarkable progress in terms of making use of nuclear power.

Putz Putin: Russia Planning to Build Another Post Fukushima Nuclear Plant Time Bomb in Egypt

A dead common murre
As new reports come in of dead or dying sea birds along the coast of Oregon and Washington researchers are still baffled as to the cause

Many beach goers are shocked to find dead or dying birds littered along local beaches some dying birds are so weakthey don’t have the strength to lift their heads
Not the norm Julia Parish, executive director of the University of Washington’s Coastal Observation and Seabird Survey Team, said reports of dead common murres spiked about a month ago.

“There’s a pretty raging debate among seabird biologists at the moment,” she added. Tens of thousands of Cassin auklet have died since last autumn, warm seas are thought to be the cause and NOAA have just released data showing the first half of this year was the warmest ever recorded July was the warmest month ever recorded on the planet, the Pacific is warmer than it ever has been and with an El-Nino event expected this year it will get even warmer.

Josh Saranpaa, assistant director of the Wildlife Center of the North Coast in Astoria, said the center has received about 12 birds a day over the past month, many from Cannon Beach. The majority, about 90 percent, are common murres. “Every bird we’re seeing is starving to death,” he said. “It’s pretty bad.
A NOAA report earlier this month reported a record-setting bloom of toxic algae in North Pacific was killing marine life on an industrial scale! A huge toxic algae bloom from Mexico to Alaska is killing marine life in unprecedented numbers. Now the experts think the killer might be toxic algae proliferating in unusually warm ocean waters. “All the signs are that we’re having a major harmful algal bloom event,” Bruce Wright with the Aleutian Pribilof Islands Association said. Wright said it could be the algae that cause paralytic shellfish poisoning; the algae that generate domoic acid are another possible culprit.
Melissa Good with University of Alaska Fairbanks has been looking for the microscopic green suspects around Unalaska. “They’re a suspected cause for some of the mass deaths we’ve been seeing–the 10 fin whales that were spotted dead off of Kodiak Island; I know Adak has seen a lot of dead birds, King Cove, I believe [birds in] False Pass have been washing up. We don’t know the cause of that yet either,” Good said. “In the past, we’ve seen incidences where sand lance, a little plankton-eating fish, was accumulating these high toxins from these algae in their system.

Dare we mention Fukushima, as long ago as last November Cesium 134, the so called fingerprint of Fukushima was found in small levels 100 miles from the Oregan coast See here and now many baby seals are reported to be dying of a leukemia-linked disorder along California coast see here As NOAA reports of a record-breaking algae bloom expanding across the North Pacific reaching as far north as the Aleutian Islands in Alaska and as far south as southern California we are hearing of more marine life misery off the coast of Alaska and Canada, 21 humpback and fin whales have been found dead in southeast Alaska during the past month, according to Paul Cottrell, Pacific marine mammal coordinator for Fisheries and Oceans Canada. The discovery of four dead humpback whales in B.C. waters in a single week confounded the issue. Coinciding with well above average sea surface temperatures across the North Pacific and West Coast of North America, the bloom is laced with some toxic species that have had far-reaching consequences for sea life and regional and local economies. While algae blooms do occur with regularity across the Pacific Ocean, the size and duration of this year’s event, which began in May, has been unprecedented.

Baby seals dying of leukemia type disorder “every sea bird starving to death!” Record numbers of humpback and fin whales found dead US west coast

The Alaska Maritime National Wildlife Refuge is receiving multiple reports indicating a significant increase in dead and dying birds found on beaches, dead fish whales and sea lions have also been reported in record numbers along the Alaskan coast this year. From Alaska to Mexico starfish are dying off, oysters and scallops are dying in dramatic numbers, Bluefin Tuna have all but gone and now Sardine have vanished from the Pacific. A report earlier this month claimed seventeen dolphins found mysteriously beached near the site of the crippled Fukushima Daiichi nuclear power plant may have died from radiation-induced heart damage, a scientific analysis has suggested.

White lungs a sign of radiation poisoning?
In April 2015, scientists from Japan’s National Science Museum conducted autopsies on the beached dolphins. They found that nearly all of them had lungs that were entirely white, indicating a condition known as ischemia – that is, loss of blood to the organs. The animals’ internal organs showed no signs of infection or any other disease. “I have never seen such a state,” the chief researcher said. Full story here

Media Blackout: Canada Plans To Dump Nuclear Waste Less Than Mile From US Border

Over the last few years, the United States has not had the best track record with Deep Geologic Repositories (DGR) for nuclear waste. In February of 2014, the U.S.’ DGR, known as the Waste Isolation Pilot Plant (WIPP), had two separate incidents that compromised the integrity of the project by releasing airborne radioactive contamination. While most U.S. citizens were relatively unaffected by the events, our Canadian neighbors have proposed a plan to construct a DGR 0.6 miles from America’s largest source of fresh water, the Great Lakes — and the U.S. State Department is remaining relatively uninvolved.

In 2004, Ontario Power Generation (OPG) signed an agreement with the mayor of the Municipality of Kincardine that detailed the million-dollar payments OPG would make to Kincardine and four other shoreline municipalities for their support in the construction of a DRG. On December 2nd, 2005, OPG submitted a proposal to the Canadian Nuclear Safety Commission (CNSC) to construct a long-term DGR for low and intermediate level nuclear waste on the Bruce Nuclear site within Kincardine. Bruce Nuclear is situated on the banks of Lake Huron — the same Lake Huron that borders the state of Michigan.

The 157-page document the OPG submitted to the CNSC outlined their plan to bury low and intermediate level nuclear waste — radioactive contaminated mops, rags, and industrial items as well as, resins, filters, and irradiated components from the nuclear reactors.

The OPG’s 2005 plan included thirty-one limestone burial caverns carved 680 meters below ground, extending approximately 1 kilometer (0.62 miles) from Lake Huron. In the initial report, the OPG published a favorable community reaction:

“The results of Public Attitude Research indicate that…a large number of local residents feel a long-term waste management facility would have no effect on their level of satisfaction with the community,” it said.
Fast forward ten years, and some important public attitudes outside of the Municipality of Kincardine have vehemently voiced their opposition towards a nuclear waste dump less than a mile from one of the world’s largest fresh water sources. There are 41 million people living in the Great Lake region, and the OPG’s plan for a DGR is rightfully rubbing them the wrong way — so much so that groups like Stop the Great Lakes Nuclear Dump, the Canadian Environmental Law Agency (CELA), and the Sierra Club Canada are actively and vocally calling attention to the invalidity of the OPG’s plan, which includes a $35.7 million payment to fund construction.

In a statement to VICE, the Sierra Club’s program director, John Bennet, questioned the integrity of the OPG’s review panel, as it is full of “ex-nuclear industry officials.” He stated, “…[the panel has] never not approved a [nuclear] project.” If you are wondering why a site so close to such an important body of fresh water was chosen to store radioactive nuclear material, you’re not alone. In CELA’s assessment of OPG’s research and plans, they stated:

“OPG has not described how the alternatives to the proposed DGR and the alternative means of carrying out the project were evaluated and compared in light of risk avoidance, adaptive management capacity, and preparation for surprise…The DGR project cannot be identified as the preferred option until this has been done.”
The aforementioned environmental groups are not the only constituents fighting against the DGR. In the United States and Canada, 169 resolutions have been passed against the DGR. Further, U.S. Senators Debbie Stabenow and Gary Peters have co-introduced the Stop Nuclear Waste by Our Lakes Act. The act calls for the State Department to invoke the 1909 Boundary Waters Treaty, mandating a study of OPG’s plan by the International Joint Commission.

Given the United States’ failure to build its own secure DGR, you would think the State Department would be concerned about its largest fresh water source’s close proximity to one. But, according to a VICE source,

“…[a representative from the State Department] said they have no plans to call for the binational review the senators are demanding.”

Above all, given the risk inherent to the generation, disposal, and storage of nuclear power and waste, it is essential we use cases like this to support the aggressive promulgation of sustainable, clean energy. Beyond the threat imposed to those living in Kincardine and the Great Lakes region, everyone along the three hour drive between the Pickering and Darlington nuclear stations and the Bruce Nuclear site will be at risk while the waste is transported to the dump. Our current system is literally toxic and until citizens step up and stop millions of dollars from swaying government municipalities’ support of nuclear power companies, we will have few solutions to this poisonous problem.

Geomagnetic storming expected to continue over the next two days

Geomagnetic storm reaching G2-Moderate levels has been observed on August 27, 2015, mostly due to effects of August 22 CME that arrived late on August 25.

This activity is expected to slightly wane throughout the day, but active levels are again expected later in the day (UTC) and into August 28 as the co-rotating interaction region (CIR) and coronal hole high speed stream (CH HSS) interact with the Earth’s magnetic field.

SWPC forecasters expect conditions to be unsettled on August 29 due to continued effects from the CH HSS.

http://finviz.com

http://quakes.globalincidentmap.com

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