6313 Gleaning BeasT Fed Zer0 0BombA- Bond Worse Than 1000 Bush Lights

by amongthenumberedsaints

So in short: Japan’s Plan B is not only not a panacea, but it is aHouse of Bonds Cards that would not survive an even modest gust of wind, and an even more modest contemplation into its true internal dynamics.

The Problems With Japan’s “Plan (jg)B”: The Government Pension Investment Fund’s “House Of Bonds”

Oh, that’s right: this is where Kuroda’s plea to please not sell bonds, just to buy stocks comes into play. The problem is only the BOJ can come up with money out of thin air, for everyone else buying something, means selling something else first. So unfortunately unless the BOJ wishes to further increase its QE, which will be needed to absorb all the selling without a surge in yields (something Kyle Bass warned about last week), a move which however would further break the connection between bonds and inflation expectations, and further destabilize the equity, FX and bond markets.

Why the Fed Can’t Stop Fueling The Shadow Bank Kiting Machine

Ever feel like you can’t put that math PhD to good use anymore and make money scalping ahead of order flow, sub-pennying and frontrunning retail in normal and dark pool markets because volumes are just off 1929 levels? Then the Chicago Fed has an offer you just can’t refuse.

Fed Hiring HFT Expert With Emphasis On “Systemic Risk”

with an emphasis on high-speed trading, algorithmic trading, technology, and regulatory changes that impact trading and markets and/or developments in domestic and international payment systems.

http://www.zerohedge.com/news/2013-06-03/thank-you-ctrl-p-deposits-rise-record-21-trillion-over-bank-loans

It may come as a surprise to some that the total level of commercial bank loans outstanding as of the most recent week, May 22, was “only” $7.303 trillion. We say only because this number is $20 billion less than the total commercial loans outstanding as of the weeks following the Lehman failure, just before the most epic deleveraging episode in recent US history began. It is also just $600 billion higher than the cyclical lows of $6.7 trillion (net of the February 2010 readjustment of the commercial loan terminology).

 and there was given to it to give a spirit to the image of the beast, that also the image of the beast may speak, and [that] it may cause as many as shall not bow before the image of the beast, that they may be killed.

http://www.biblegateway.com/passage/?search=Revelation%2013&version=YLT

http://www.prisonplanet.com/obama-to-sign-u-n-firearms-treaty-rejected-by-senate.html

LAPD confronts Call of Duty ‘Ghost’ statue in tense standoff 

Late last night the offices of Los Angeles-based independent game studio Robotoki were stormed by the Los Angeles Police Department after a curious designer pressed the building’s “panic” button, studio founder Robert Bowling told Polygon.

http://usnews.nbcnews.com/_news/2013/06/03/18722878-supreme-court-upholds-dna-swabbing-of-people-under-arrest?lite

National DNA Database: Supreme Court Approves Police can Collect DNA from Innocent People

http://www.mrconservative.com/2013/06/18266-florida-swat-officers-arrest-christians-for-reading-bibles-outside-of-abortion-clinic/

The move in core US rates clearly had a negative impact on total return performances in US Credit with IG and HY benchmarks down -2.4% and -0.6%, respectively.

Sell Bonds 

In almost every asset class, volatility has made a phoenix-like return in the last few days/weeks and while equity markets tumbled Friday into month-end, the bigger context is still up, up, and away (and down and down for bonds).

Where Do We Stand

It does not take an advanced degree in economics to realize that we are now over the financial precipice as detailed by both guests. The Nikkei 225 is down over 300 points, which is  over 16% from its “highs” a week ago, and as written by Tyler Durden of Zero hedge, “JGB implied volatility is on the rise once again. All things considered… not good.”

Steve Quayle & “V,” The Guerrilla Economist 

Financial Road to Hell: Paved with masterful deceit – the loss of all control

http://www.prisonplanet.com/british-finance-mps-to-attend-bilderberg-meeting.html 

With the dramatic public reversal of deniability of their existence and the acknowledgement that the newly elected leader of the Swedish social-democratic party, Stefan Löfven, will be the guest of Jacob Wallenberg – a prominent member of the Bilderberg steering committee, Bilderberg confirmation of the decades of reporting by the late Jim Tucker is vindicated. 

http://batr.org/solitary/060213.html

Aiming to salvage or spin off the assets, Quasha generated a dizzying web of  Bank ofCredit and Commerce International (“BCCI”) was started in Pakistan with  Anson Ng of the Financial Times, and Danny Casolaro, a freelance reporter.  by BCCI, renamed First American, and run by Robert Altman and Clark Clifford.

http://wiretap.stumblers.net/notes/notes-2/

http://news.efinancialcareers.com/uk-en/142876/seven-banks-and-bankers-who-always-attend-bilderberg-meetings/

trading in SPY exploded at 09:59:59.985, which is 15 milliseconds before the ISM’s Manufacturing number released at 10:00:00. Activity in the eMini (traded in Chicago), exploded at 09:59:59.992, which is 8 milliseconds before the news release, but 7 milliseconds after SPY. 

15 Milliseconds Of HFT Fame: Watch Today’s Early Leak Of The ISM Print

Joseph Stiglitz Was Right: Suicide

But, Stiglitz was right; we have signed a suicide-pact. We have decided that we need to destroy everything and start again. That’s what normally happens when those that are lagging behind finally catch up with us, we change the boundaries, so they are lagging behind again. But, this time, it’s our own death that will come about. Our economies will die. The politicians are not economists. They can’t tell us what will happen and what bright new future they will construct. But, they are the ones that are the apprentice-sorcerers that are waving the wands, dressed in economists’ clothes.

http://www.washingtonsblog.com/2013/06/the-big-banks-and-commodities-future-trading-commission-conspired-to-hide-speculation-from-congress.html

When a congressman on the Agricultural Commission asked the CFTC for a sample of one of the exemption letters, the CFTC official said he had to ask Goldman Sachs whether or not the CFTC could show a copy to Congress.  In other words, the banks were already running D.C. by the 90s.

Central Bankers Gone Wild:Japan is about to unleash the most significant currency war 

And Just In Case Abenomics Fails…

based on orders from Iran’s supreme leader, Ayatollah Ali Khamenei, the country has made great progress in the field and currently several labs in Iran are working independently of each other in developing the biological elements, although the general said the effort is defensive.

http://news.silobreaker.com/iranian-general-warns-of-biowarfare-5_2266864733598515211

They also displayed bottles of chemicals and other lab equipment as well as remote-controlled toy helicopters authorities said the men planned to use to disperse the gas.

http://www.abc.net.au/news/2013-06-02/iraq-captures-suspected-chemical-weapons-team/4727750

Militants who oppose giving girls the right to education have
been blamed for the alleged poisonings

http://rinf.com/alt-news/breaking-news/almost-100-afghan-schoolgirls-poisoned-in-suspected-gas-attack/38459/

But in recent months it has become almost unbearable. It feels almost like an openly criminal environment now. The problem is not only “lack of visible security,” but in some cases the security are either working with the vendors on their scams, or are sexually harassing female foreigners quite openly, even those who are obviously accompanied by their husbands.

http://www.thetower.org/lawlessness-blackouts-roil-egypt-as-u-s-warns-against-pyramids-tourism/

http://www.zerohedge.com/news/2013-06-03/thought-experiment-why-do-we-bother-paying-personal-taxes

The US government will take in about $2.5 trillion in taxes this year.  Seems like a lot of money but when you look at what the Fed and US govt can do when they really wants to, $2.5 trillion is child’s play.  The Fed alone has doled out trillions in USD to TBTF banks alone.  Add in TARP and other bailout programs, the backstops on FNMA/FHLMC (still not counted on the govt’s balance sheet), the interest savings associated with ZIRP (to the borrowers, not savers), the FDIC insurance subsidy which accrues to the banks, the mortgage interest subsidy and financing provided to the real estate industry, the growing mountain of federally insured student loans fueling the bubble in education, etc.

Holder Laid the Groundwork for “Too Big to Jail” In 1999

In the best years, the U.S. financial sector made 40% of all corporate profits. This is bad, given that economist Steve Keen has shown that “a sustainable level of bank profits appears to be about 1% of GDP”, and that higher bank profits leads to a ponzi economy and a depression

http://www.washingtonsblog.com/2013/06/40-of-the-worlds-banks-are-publicly-owned.html

A member of Iceland’s parliament pointed out that Iceland’s main banks used to be public, but that the politicians let them be privatized a few years before the crisis.

Remove Eric Holder from Office, Prosecute for 1st Amendment Violations

“While the White House publicly backed Mr. Holder as he tried to smooth over the latest uproar amid new speculation about his future, some in the West Wing privately tell associates they wish he would step down, viewing him as politically maladroit.”

http://dailycaller.com/2013/06/02/even-some-west-wing-aides-want-holder-to-resign/

The agent in the Cincinnati office, where the targeting took place, told congressional investigators that he or she was told in March 2010 by a supervisor to search for Tea Party groups applying for tax-exempt status and that “Washington, D.C., wanted some cases.”

http://investmentwatchblog.com/breaking-irs-agent-says-orders-to-flag-tea-part-groups-came-from-dc/

Did those directions came from Washington, D.C.? the investigator wanted to know.

‘I believe so,’ was the answer.

Another Cincinnati IRS employee, whom the oversight committee described Sunday as ‘more senior,’ told the investigators that he or she applied for another job in July 2010 out of a desire to avoid connections with a program that targeted certain Americans because of their political beliefs.

‘It was the whole tea party. It was the whole picture,’ the senior agent said.

‘I mean, it was the micromanagement. The fact that the subject area was extremely sensitive and it was something that I didn’t want to be associated with.’

IRS employee in bombshell congressional interviews about tea party targeting: ‘Washington, DC wanted some cases 

Three separate congressional committees will hold hearings in the coming week about the IRS scandal, including a House Oversight and Government Reform hearing Monday

New IRS Chief Faces Questions on Hill Over Growing Controversies

The report states the IRS spent about $50 million to hold at least 220 conferences for employees from 2010 to 2012, according to the House Oversight and Government Reform Committee

If the accusations are true, then the Obama campaign may have violated federal laws by using a government agency to harass and intimidate a political opponent, charges which could lead to Obama’s impeachment from office and jail time for anyone aiding such an operation.

http://www.examiner.com/article/obama-may-have-used-irs-to-attack-romney-on-taxes

Klein said Obama resisted giving Bill Clinton a role in his re-election bid but went along with the advice of adviser David Axelrod when his race against Republican candidate Mitt Romney tightened.

Bill Clinton agreed to give a sterling endorsement of Obama with Obama agreeing to do the same for Hillary Clinton, said Klein, a former Newsweek foreign editor and ex-editor in chief of The New Times Magazine who has written books about Obama, Hillary Clinton and the Kennedys.

Book: Bill Clinton called Obama ‘incompetent’

You’ve got to hand it to Obama – he’s managed to squeeze in a near-record amount of scandals in a relatively short time (four years). But in sum, they are prime examples of just how little respect this president has for our country’s founding heritage and principles.

Obama Administration a ‘culture of intimidation and cover-ups’

“The scale of it and the length of time, this was a pattern. This was a culture of discrimination where it was OK to go after conservative groups. [But] progressive groups seemed to find the process just worked OK for them. That’s what’s troubling.

“This appears to be just the latest example of a culture of cover-ups and political intimidation in this administration,” Camp continued. “It seems like the truth is hidden from the American people just long enough to make it through an election.

http://investmentwatchblog.com/breaking-issa-calls-carney-a-paid-liar/

http://intellihub.com/2013/06/02/us-military-blocks-access-to-christian-website-due-to-hostile-content/

The pentagon claimed the block was due to malware somewhere on the website, a vague and not very logical explanation. It also came just weeks after the government began to label Christian groups as potential threats, religious extremists, and other fear-based, absurd titles, so most people who view this in the proper context, don’t buy the official narrative for a second.

http://intellihub.com/2013/06/02/ex-obama-secret-service-exposes-gun-control-agenda/

We see this throughout history as certain forms of ‘equal’ government are pushed by those at the top who in fact hog the resources for themselves under the guise of government duty and use phony patriotism (or worse) to silence the opposition.

Kathleen Taylor, Neuroscientist, Says Religious Fundamentalism Could Be Treated As A Mental Illness

Obamacare To Double Cost Of Insurance For Average Californian

Internet monitoring system to stalk social media users who question safety of vaccines

IRS also targeted adoptive families for intimidation and oppression

Torrential rains and flooding ravage Central Europe: the worst in 70 years

http://thecelestialconvergence.blogspot.com/2013/06/deluge-mass-animal-die-off-widespread.html?utm_source=BP_recent&utm-medium=gadget&utm_campaign=bp_recent

DISASTER IMPACT:  Strikes Back – At Least 16 Dead After Rain, Twisters Lash Midwest United States; More Storms Heading East!

.http://theextinctionprotocol.wordpress.com/2013/06/03/philippines-earthquakes-in-mindanao-to-last-for-months-volcanic-anomalies-reported-underground/

http://thewatchers.adorraeli.com/2013/06/02/geomagnetic-storm-still-in-progress-june-2-2013/

Fire north of LA forces nearly 3,000 from homes

To the Muslims in the United States, he said: “We encourage you to carry on with this way, be steadfast in your religion.

http://www.france24.com/en/20130603-qaeda-chief-warns-attacks-us-everyones-reach

At about the same time, three letters laced with ricin were discovered, one addressed to US President Barack Obama, one to Republican Senator Roger Wicker of Mississippi and a third to a justice of the peace in the same US state, Sadie Holland.

Charges were later dropped against a man initially suspected to be behind the letters, Paul Curtis.

http://www.breitbart.com/Big-Peace/2013/06/02/Former-British-PM-Tony-Blair-There-Is-A-Problem-Within-Islam-We-Have-To-Be-Honest-About-It

The friend said that two years ago Jeremiah was approached by UK security officers when he was held at Heathrow on his way back from Saudi Arabia.

During the interview, he was warned about what happens to Muslims who don’t help the Government and was shown documents that confirmed people he knew were being held in prisons throughout the world.

http://www.dailymail.co.uk/news/article-2334476/Woolwich-murder-MI6-connection-Younger-brother-Michael-Adebolajo-paid-thousands-spy-Middle-East.html

The younger brother of one of the men accused of murdering Drummer Lee Rigby was paid thousands of pounds by MI6 as part of spying operations in the Middle East, The Mail on Sunday has discovered.

http://thetruthnews.info/black_ops.html

The media is now consistently referring to three scandals engulfing the Obama presidency, even using a shorthand expression such as a “trifecta” of troubling incidents. Yet, there is a scandal brewing that is worse than the Department of Justice violating freedom of the press, the Internal Revenue Service abusing its power and four Americans left to die at the hands of jihadists in Benghazi, Libya.

http://www.worldtribune.com/2013/05/30/what-happened-to-seal-team-six-the-most-serious-scandal-of-all/

Finally, they are incensed that at the funeral held in Kabul, a Muslim cleric recited a prayer over the bodies of the fallen that confined them to eternal damnation as” infidels.”

http://www.cbsnews.com/8301-18563_162-57587251/chinese-mock-u.s-hacking-claims-ahead-of-calif-summit/

Obama will try to press the “reset” button on cyber relations this week when he sits down with China’s new president in California.

Kerry’s deadline for deciding whether there is any point in continuing diplomatic efforts to renew talks is nearing, while both sides are hardening their negotiating positions. Kerry expects answers from Jerusalem and Ramallah within two weeks.

http://www.haaretz.com/news/diplomacy-defense/u-s-will-drop-peace-process-if-israelis-palestinians-aren-t-serious-senior-american-official-warns-1.527521

In an article by Arshad Mohammed, the Reuters journalist responsible for covering the State Department in Washington, the reporter cited those who called Kerry a “Lone Ranger” condemning the Middle East peace process, and that many involved call Kerry “naive.”

Major Increase in US Currency in Circulation Possibly Indicates Foreknowledge of 9/11 Attacks

http://www.economicpolicyjournal.com/2013/04/was-bill-bergman-fired-from-federal.html

Why Didn’t the SEC Catch Madoff? It Might Have Been Policy Not To

http://www.rollingstone.com/politics/blogs/taibblog/everything-is-rigged-continued-european-commission-raids-oil-companies-in-price-fixing-probe-20130515

The commission said the alleged price collusion, which may have been going on since 2002, could have had a “huge impact” on the price of petrol at the pumps “potentially harming final consumers”.

Lord Oakeshott, former Liberal Democrat Treasury spokesman, said the alleged rigging of oil prices was “as serious as rigging Libor” – which led to banks being fined hundreds of millions of pounds.

http://bilderberg-2013-live-streams-news.blogspot.com/2013/06/bilderberg-2013-comes-to-grove-hotel.html

http://www.blogtalkradio.com/cfp-radio/2013/05/30/the-hagmann-hagmann-report

http://investmentwatchblog.com/18-signs-that-massive-economic-problems-are-erupting-all-over-the-planet/

The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019.  These new regulations dramatically increase capital requirements and significantly restrict the use of leverage.  Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit.  The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand.  By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy.

http://theeconomiccollapseblog.com/archives/basel-iii-how-the-bank-for-international-settlements-is-going-to-help-bring-down-the-global-economy

These new regulations are going to be phased in between 2013 and 2019.  You can see a chart which shows the implementation schedule for the Basel III regulations right here.

http://www.independent.co.uk/news/world/middle-east/israel-prepares-as-war-clouds-gather-russias-determination-to-supply-syria-with-s300-missiles-raises-fears-of-arming-hezbollah-8641380.html

http://www.truthdig.com/report/item/profiting_from_human_misery_20130217/

A roadmap has been drawn up for completing Economic and Monetary Union (EMU). Its completion, including notably the part related to the banking union, is essential….
http://investmentwatchblog.com/ecb-warns-calm-before-storm-ending-want-to-break-up-the-big-banks-there-will-be-consequences/

“We will inherit a substantial deficit. We will have to govern with much less money around. We will need to show an iron discipline.

Balls:  axe wealthy pensioners’ fuel

Remember, Vrain used to give talks about the benefits of GM foods, but he simply couldn’t ignore the research any longer … and why, then, should you?  All in all, if GM foods have something wrong with them that potentially could cause widespread illness or environmental devastation, Monsanto would rather NOT have you find out about it. Not through independent research, nor through a simple little label that would allow you to opt out of the experiment, should you choose not to take them on their word. As Vrain continued:

Former Pro-GMO Scientist Speaks Out on the Real Dangers of Genetically Engineered Food 

South Korea joins Japanese ban on U.S. wheat imports after shocking GMO contamination announcement by USDA

http://www.shtfplan.com/headline-news/blood-in-the-streets-turkey-explodes-in-violence-extremely-graphic-content_06022013

http://intellihub.com/2013/06/02/turkish-police-run-over-crowds-of-protesters-with-large-tanks-warning-graphic-video/

reports- Turkish Gov’t Shuts Down Twitter & Facebook Access to Prevent Protests from Growing

The protest spread to 67 other cities and 81 provinces over the weekend, says the government.

‘Turkish Spring’ tests Erdogan’s rule 

Turkish Stocks Collapse Most In 10 Years, Bond Yields Surge Most On Record

http://www.zerohedge.com/news/2013-06-03/chart-day-turkish-uprising

‘Iranian, Russian arms giving Assad edge in Syria’

The report also said China has overtaken Britain as the world’s fifth largest arms exporter after the United States, Russia, Germany and France.

China, India, Pakistan boost nuclear arsenals

http://enenews.com/rates-of-thyroid-problems-in-children-near-fukushima-nuclear-plant-are-high-expert-parents-have-reason-to-worry-govt-accused-of-cover-up

http://survivalist.com/surviving-the-finger-of-god/

http://www.zerohedge.com/news/2013-06-03/perfectly-normal-fat-fingerish-dump-restart-trading

Maybe someone hacked the vacuum tubes’ calendar file and instead of Tuesday has pegged tomorrow as a Wednesday which takes away any “fundamental” reason to ramp futures and stocks (or perhaps someone leaked that after Tuesday we get a Wednesday when nothing levitationally magical happens, which however makes no sense:

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