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.
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]
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.
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 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.
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.
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.”
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:
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…
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.
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.
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.
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
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
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.
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.”
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.
^^^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.
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.
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…?”
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.