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.
*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.
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.