>>>SQUEEZ IS ON<<<
and those that can’t dump their assets are hedging aggressively (while maintaining the illusion with VIX that all is well)
“There’s something going on in derivatives land,” is the warning from ADM’s Andy Ash and as Paul Mylchreest notes the relationship between VIX and SKEW suggests the options market is pricing in the possibility of a major market event. The process enables professionals to maintain the illusion of calmness in VIX while hedging their positions (as they attempt to unwind as we have shown). Whether this ‘event’ is a crash or melt-up is historically unclear but given the taper and the trend of the last few years, we suspect the former more likely that the latter.
Those who see the current era as the New Normal also have one logical action: sell now at the top and wait for the smoke to clear in 2016.
In The Generational Short: Banks, Wall Street, Housing and Luxury Retail Are Doomed, I addressed how generational changes in values could affect the stock market. That values change over time is common sense, and so is the idea that values drive choices about purchases, debt and investments that ultimately influence stock valuations.
The implicit conclusion: the Baby Boomers won’t have anyone to sell their stocks, real estate and bonds to. Correspondent Eric A. demolished the fantasy that Gen X will have the income and assets to buy the Boomers’ stocks held in IRAs, local government and union pension funds and 401K accounts in Generation X: An Inconvenient Era (May 23, 2013).
The idea that Gen-Y will have the wealth (not to mention the desire) to buy the Boomers’ stock market portfolios at nosebleed valuations poses a peculiar conundrum: the only way Gen-Y will have the wealth to buy Baby Boomers’ assets is if the Boomers sell their assets and pass the wealth along to Gen-Y.
So if both Gen-X and Gen-Y are out as buyers, who’s left to buy the tens of trillions of dollars of Boomer assets at bubblicious prices? Given that other nations face the same demographic dilemma, the answer appears to be: no one.
June 23, 2014 /PRNewswire/ — Twenty-six percent of Americans – just over one in four – have no emergency savings, according to a new Bankrate.com RATE +0.29% report. Sixty-seven percent have saved less than the recommended six months’ worth of expenses and half have saved less than three months’ expenses. The percentage of Americans with at least three months’ expenses in savings declined from 45% last year to just 40% this year.
“Americans continue to show a stunning lack of progress in accumulating sufficient emergency savings,” said Greg McBride, CFA, Bankrate.com’s chief financial analyst. “Even among the highest-income households — those with annual income of $75,000 or above — fewer than half (46%) currently have a six-month savings cushion.”
At the DWAS Department — it’s not our goal to shut off water. We want people’s water on, just like they do; but you do have to pay for your water…That’s the bottom line.”
Garner said the reality is that nearly half of Detroit Water and Sewerage customers can’t pay their bills; and that has led activists to lobby the UN to step up and take action.
“If they do contact us we are willing to speak with them,” she said, adding “We owe it to the customers that are paying to collect from those that aren’t. Somebody has to pay for the water.”.
So, sorry America: you are stuck where you are, eating food that has rarely if ever cost more, fueling up with gas that is approaching it all time high summery prices. Enjoy Yellen’s “noise.”
Everyone knows that assorted food prices – most notably various meats such as beef and pork – have never been higher, but to Janet Yellen that’s just noise. After all, why worry about food inflation or the highest gas prices on this day in the year with the exception of 2008 of course, when one can just keep buying ever (hedonically) cheaper plasma TVs (although unclear where said TVs would be put with rent inflation also off the charts). So perhaps the thinking is that the average American can just hop on a plane and go to where the prices are lower? Not so fast.
According to the latest CPI report, the May surge in airfare prices was so dramatic and unexpected, that on a compounded annualized basis (CAGR), the May surge in airline fares was a whopping 97%: the highest since 1999, and the third highest ever.
With the number of drone failures rising domestically and the likelihood of an exponential rise in drone strikes in Iraq imminent; the US federal court has decided now is the time to release the redacted memo justifying the use of unmanned drone strikes on US citizens. …also recognized that “the realities of combat” render certain uses of force “necessary and appropriate,” including against U.S. citizens who have become part of enemy forces-and that “due process analysis need not blink at those realities.”
there are other factors besides rising food costs that experts and historians agree can lead to instability within a country. Unemployment (or in the case of the United State, chronic underemployment), political oppression (which has gotten worse and worse in the U.S. over the past 50 years especially), economic instability (think of another economic collapse like the one which triggered the recent “Great Recession”) and political corruption (think of the various and growing scandals within the current administration).
That said, experts note, there is something fundamentally unnerving about a lack of food — the inability to either obtain it or gain access to it. As Bar-Yam explains, “The analysis suggests the doubling of food prices we have seen since 2005 pushed many in the greatest poverty across the line from bare subsistence into desperation and starvation. When people are not able to feed their families, they have little to lose and become willing to take strong actions.”.
2014 – 2025 World’s debt-based banking system suffers catastrophic debt collapse due to wildly over-leverage derivatives combined with endless money creation by central banks.
2014 – 2034 Over the next 20 years or so, the odds of either a major nuclear power disaster — or a catastrophic worsening of the Fukushima Daiichi facility — is shockingly high. As we’ve already seen, nuclear disasters can be set off by natural disasters such as earthquakes. Nuclear power plants can also be compromised by power grid failures and EMP weapons (see below).
Housing recovery? Maybe for the richest, and even they are far less exuberant about purchasing $1MM+ mansions. For everyone else, enjoy “plunging” hedonically-adjusted LCD TV prices. Everything else is, well, noise.
This is bad because while in April there was a modest increase sales in house buckets from $250 all the way up to $1MM +, in May the only bucket that had an increase in sales from a year ago was that exclusively reserve for the ultra-richest, i.e., those who benefit the most from the Fed’s non-trickle downing wealth effect policies. In fact, on a price bucket basis, the May data was unformly worse than April!
The government of Bashar Assad in Damascus on Monday condemned as a “flagrant violation” of its territory Israeli air raids that reportedly killed 10 Syrian soldiers overnight near the Golan Heights.
“The Israeli occupation forces on Sunday and Monday carried out a new attack against positions inside Syrian territory, which constitutes a new, flagrant violation of the 1974 Separation of Forces Agreement, of the UN charter and international law,” Syria’s foreign ministry said in a statement.
Doug Hagmann and I have been very consistent in stating that World War III would begin in Syria. Further, my military sources have been telling me for 15 months that war in the Middle East, and possibly World War III, will commence in Syria for a variety of reasons. The world is beginning to witness the unfolding of this prediction. Historians may look back upon Israel’s recent attack upon nine military targets inside of Syria as a the Archduke moment for World War III.
ISIS will no doubt cross into Syria and its actions will lead to widespread destabilization of the Syrian government. The world would soon see a horrific carnage as ISIS’ actions in Iraq are merely the preliminary event.
Syria must be taken and fortified by the West. Holding Syria is the key to warding off a Russian invasion should the IDF and NATO invade Iran to stop its practice of selling its oil for gold to the BRICS.
If Syria is occupied, the United States will be able to employ airpower and utilize its small and medium missile batteries. These weapons would be able to repel a Russian counter-attack in Syria. With Russia being stopped at the gate, the door is open to invade Iran. Yet, another false flag will have to be unleashed to give the U.S. the justification to invade Iran.
“Now both of these camps are enemies of the United States,” he continued. “And when your enemies are fighting each other, don’t strengthen either one of them. Weaken both.”
“And I think by far the worst outcome that could come out of this is that one of these factions — Iran — would come out with nuclear weapons capability,” Netanyahu asserted. “That would be a tragic mistake. It would make everything else pale in comparison.”
Former United Nations Ambassador John Bolton, a proponent of America’s 2003 invasion of Iraq, argued in a radio interview on Sunday the U.S. should stay out of the current conflict and instead let Sunnis and Shiites fight it out.
John Bolton: U.S. should stay out of Iraq <—Every idiot that served in Iraq has the right to knock this asshole out on sight
As for US “foreign policy”, just how many other ways can one describe a flaming, slow and increasingly faster-motion trainwreck?
John Kerry came, saw and as usual made a horse ass out of himself.
The bravado is real enough. But the front line with Isis in the north of Iraq is now 600 miles long. That is a long line for the Kurds and a few hundred Christian militiamen to hold.
Captain Firaz Jacob knows he may well be mounting a last stand at the frontiers of the Christian settlement of Bartella on the outskirts of Mosul. Less than a mile down the road are the jihadists of Isis, the Islamic State of Iraq and al-Sham, and the portly, middle-aged Mr Jacob is aware that his home-grown militia are outnumbered.
“I stand here waiting for my destiny,” he said, as he stood this week by the last check-point on the road to Mosul and the black flags waiting in the desert. Speaking of why he and his men were refusing to give up and go, Capt Jacob said was determined to resist the jihadists and their allies, who last week over-ran most of the rest of northern Iraq.
“We will stay here despite everything,” he announced. “All these armed groups we have seen, but nevertheless we will remain. We love our Christian way of life, we love our churches and we love our community.”
Former Acting Central Intelligence Agency Director Michael Morell said it may be at least a year before ISIS poses a serious threat to the U.S.
However, he said the threat could be sooner if the U.S. offered direct assistance to Iraqi Prime Minister Nouri al-Maliki.
Upon his release through what observers say was under a general amnesty, King said that al-Baghdadi said, “I’ll see you guys in New York.”
Senator Rand Paul warned Americans about this growing trend of demonizing innocent Americans in a speech he delivered to Congress three years ago in opposition to the National Defense Authorization Act noting that those who don’t subscribe to the status quo could be branded as extremists and terrorists. Paul’s prediction couldn’t have been more accurate, especially considering the manhunt and circumstances surrounding the ordeal with Martin Winters:
Sen. Rand Paul (R-Ky.) said Sunday that the Sunni militants taking over Iraq have quickly gained power because the United States has armed their group in Syria.
“I think we have to understand first how we got here,” he said on CNN’s “State of the Union.” “We have been arming [the Islamic State in Iraq and Syria] ISIS in Syria.”
ISIS, an al Qaeda offshoot, has been collaborating with the Syrian rebels whom the Obama administration has been arming in their efforts to overthrow Syrian President Bashar al-Assad, Paul explained.
Following our comprehensive update yesterday, there is not as much to report, but for all those following the Iraq situation closer than the surgeon general recommends, here are the latest updates.
ISIL Controls Western Borders; Kerry in Bagdad: Oil extends gain as conflict in Iraq escalates with ISIL-led militants capturing border crossings with Syria and Jordan and gaining territory.
From Reuters: U.S. Secretary of State John Kerry met Iraq’s prime minister in Baghdad on Monday to push for a more inclusive government, even as Baghdad’s forces abandoned the border with Jordan, leaving the entire Western frontier outside government control.
It’s crumbling so quickly: Just 2½ years after American troops came home, Iraq is back in crisis.
And chaos in Iraq, a diverse nation that stands as a buffer zone between the mostly Sunni Mideast and mostly Shiite Iran, is troubling around the world.
There were plenty of warnings, of course.
A look at how we got here:
WHEN DID THE TROUBLE START?
The answer depends: How far back do you want to go?
Teens were drugged, stripped naked, raped, hunted down in the woods and killed by European royals according to this week’s latest eyewitness to testify before the International Common Law Court of Justice in Brussels. The woman was the fourth eyewitness to give accounts about these human hunting parties of the global elite Ninth Circle Satanic Child Sacrifice Cult network. A former member of the Netherlands criminal drug syndicate known as Octopus testified that victims were obtained for these human hunting parties from juvenile detention centers in Belgium and Holland.
“In 2004 I was an involuntary witness to torture, rape and murder sessions of drugged children performed for a group of high ranked people of the Netherlands” stated a woman. “I was taken to a hunting party in Belgium close to Brussels where I saw two boys and a girl ages 14 to 16, hunted and killed by global elites. The human hunting party was heavily guarded by the Netherlands Royal Guards. I was told that King Albert of Belgium was present.”
his is one in a series of articles taken from eyewitness testimony before the International Common Law Court of Justice in Brussels. Five international judges are examining evidence of child rape, torture, murder and kidnapping allegedly done by global elite members of the Ninth Circle Satanic Child Sacrifice Cult network. Regular Ninth Circle child sacrifices were said to take place in the catacombs of Catholic Cathedrals, the Vatican, on private estates and groves and government military bases in Belgium, Holland, Spain, Australia, Ireland, France, England and the US. At least 34 child mass grave sites were identified in Ireland, Spain and Canada – and refused excavation by the respective governments, Crown of England and Catholic Church. Named as present in Ninth Circle activities were Pope Francis, former Pope Ratzinger;Anglican, United Church of Canada and Catholic Church officials including Cardinals; members of European royalty including Queen Elizabeth and Prince Phillip; officials of the Canadian, Australian, UK and US military and governments including the USA’s CIA, plus prominent government ministers, judges, politicians and businessmen from the US, Belgium, Holland, Canada, Australia, France, Ireland and the UK.
Press reports claim that documents about Osama Bin Laden’s family were among 14,000 files seized by German port authorities
The British jihadist who calls himself Abu Rashash Britani, has called for the beheading of the Prime Minister and the Home Secretary in a violent twitter rant. The man, who is currently believed to be fighting for ISIS in either Iraq or Syria has already threatened to bring terror back to the UK.
Matteo Renzi, the Italian prime minister, has said that Italy will push for a “United States of Europe” during its six-month EU presidency, in a move likely to raise hackles in Britain.
Launching an appeal to convince European leaders to show “that a stronger and more cohesive Europe is the only solution to the solve the problems of our time”, Mr Renzi said: “For my children’s future I dream, think and work for the United States of Europe.”
He further called for “courageous leaders” to work towards achieving that goal – something that Britain has always objected to. In 1988 Margaret Thatcher, then prime minister, dismissed the idea that the United States might be a model for the future of Europe and David Cameron is actively trying to prevent the election of a committed federalist, Jean-Claude Juncker, to the head of the European Commission.
Italy takes over the rotating EU presidency from Greece on July 1. Its job will be to steer the EU at a time when the so-called “European Project” is coming under renewed attack, in the wake of an EU-wide surge in support for Eurosceptic parties in the recent European elections..
Today’s bombshell is the natural next-step in the evolution of the One World Religion – a temple to call their very own. And where better to build that abomination than in the city that is most famous for introducing the world to Adolf Hitler and the Holocaust but in Berlin, Germany. If the irony of that doesn’t punch your buttons, then you need to go look up the definition of the word “irony”. Seriously, could it be any plainer, any more in-your-face than that?
They are calling it the House of One, and it is just that. The world’s 3 major religions under one roof where they will, at first, worship in separate compartments within the the complex, but then all come together to find that oh-so-elusive “common ground” that Rick Warren is such a fan of. If no one ever told you the secret to boiling a live frog in a pan of water without it first jumping out, go look it up. There is much wisdom there.
The BBC reports that an architecture competition has been held and the winner chosen. The striking design is for a brick building with a tall, square central tower. Off the courtyard below will be the houses of worship for the three faiths – the synagogue, the church and the mosque. It is to occupy a prominent site – Petriplatz – in the heart of Berlin.
It appears no matter where you look; no matter how ‘allied’ a nation is, it is turning its back on the US…
The magazine did not say who recorded the conversation, or how it obtained the recording… which makes one wonder if the KGB had a hand in it? Alienating 2 key NATO players.
Well this is awkward. A week after the Polish central bank was busted offering favors to the government (exposing its utter un-independence); the same Polish news magazine has obtained s ecret recording of Foreign Minister Radoslaw Sikorski saying that Poland’s relationship with the United States was worthless. The Wprost news magazine said the recording was of a private conversation between Sikorski and Jacek Rostowski (finance minister) with such headlines as “you know that the Polish-US alliance isn’t worth anything;” also describing Warsaw’s attitude towards the United States using the Polish word “murzynskosc” – roughly translated as a negro slave – “It is downright harmful, because it creates a false sense of security … Complete bullshit. We’ll get in conflict with the Germans, Russians and we’ll think that everything is super, because we gave the Americans a blow job. Losers. Complete losers.” USA – making friends wherever they go
But why is Iraq not taking advantage of the slowdown in the ISIS offensive and seeking halt the military momentum? Simple: its army is running out of supplies!
Sunni militants have seized another town in Iraq’s western Anbar province, the fourth to fall in two days, officials said Sunday, in what is shaping up to be a major offensive in one of Iraq’s most restive regions.
Iran’s supreme leader meanwhile came out forcefully against any U.S. intervention in Iraq, accusing Washington of fomenting the unrest and appearing to quash recent speculation that the two rivals might cooperate in addressing the shared threat posed by the advance of Islamic extremists.
As ABC reports, the Iraqi military ran out of Hellfire missiles six days ago, and though the U.S. is rushing more missiles into the country, Iraq has only two modified Cessna aircraft to launch them in their battle against the radical Islamic militia ISIS.
ISIS has damaged 28 tanks and shot down three helicopters, a significant percentage of the government force, and the militia killed an entire Iraqi Security Force brigade in the last couple of days at the border with Syria, which ISIS now controls.
The losses have left the Iraqi military with no offensive capability, and no real air force.
Meanwhile, ISIS is taking advantage of its involuntary restocking by the US army, after its plunder of an unknown number of US Black Hawk helicopters and Humvees (the topic of choice in ISIS’ trolling of Michelle Obama as reported yesterday) during its Mosul offensive several weeks ago.
That wraps up the military deployments (or lack thereof) in the past 48 hours.
The US takes was slightly different, and according to the new White House spokesman, Obama once again reverted to his favorite topic: costs. From Bloomberg
President Obama spoke with Russian President Putin this morning to urge him to use influence to promote peace and stability in Ukraine, White House spokesman Josh Earnest tells reporters.
Says Russia faces additional costs without concrete steps to advance peace.
One wonders if the latest disastrous intervention by John Kerry was also discussed, or if that was more of a unilateral “laughter” type comment by the Russian president.
Considering this is the nth+1 conversation between the two presidents which have so far achieved precisely nothing when it comes to joint efforts, one can be sure that this latest phone call will only “result” in a several thousand dollar phone bill on Obama’s hotline phone, invoiced promptly to the US taxpayers.
Israel says direct hits confirmed on Assad army positions; attack comes in response to cross border assault Sunday which killed 15-year-old boy in Golan Heights
She was only finally freed this afternoon.
Ms Ibrahim’s lawyer Mohaned Mostafa said after her release she had been sent ‘to an unknown house to stay at for her protection and security.’
‘Her family had been threatened before and we are worried that someone might try to harm her,’ he said.
In an interview with CNN earlier this month, Al Samani Al Hadi Mohamed Abdullah said that if Meriam was killed, it would have ‘enforced God’s word’ because she broke sharia. He has threatened to kill her himself if she was not executed.
Ms Ibrahim is married to Daniel Wani, an American citizen who is Christian.
Mr Wani’s brother Gabriel, who lives in Manchester, New Hampshire, said: ‘If it’s true it is great news. Knowing him he will want to bring her back to America as soon as he can. I hope he can do that.’