by amongthenumberedsaints

Perhaps the look on Jeff Cox’s face sums up the day as talking head after talking head stepped up to reassure investors that the market is not beholden to central banks despite the most in-your-face example of it since the PPT in 2008..

The Halloween Yen Massacre Sends Market To All-Time Highs

Of course it was really all about USDJPY and Nikkei – that is a 1230 point rally in the Nikkei! and a 3 handle rip in USDJPY

Antichrist NWO 666 Team US Sends Representative To Join Antichrist Petrus Romanus In Rome For Push Of End-Time ‘Global Sataic Covenant Of World Religions’

In Rome to promote “a conversation about a new covenant, an interreligious peace treaty,” White said we need to overcome the cynicism that questions whether anything new and effective can be done in this area. Our time is different, says White, “when the violence proliferated so explicitly in the name of God, that can come into this ‘convert or die’ type of energy, that is the urgency that is new.” “We have to actually go beyond photo opportunities, beyond interfaith conferences, and say: What would our agreement look like in terms of an interreligious fatwa against violence?” White believes Rome is important because it is “an address by which people are projecting perhaps on to Pope Francis, the Catholic Church, but again the archetype of Saint Francis” a space where effective dialogue can take place. “So I believe that a number of the world’s religious leaders are dropping through Rome more than ever before, and appealing for that type of neutral brokerage, a >>>third<<< side,” White said.

Petrus Instructs Laity Not To Wait On Theologians To Work Out Details But Start Gathering Under One-World Religion Now

His words came during an October 10th encounter at the Casa Santa Marta with members of the community founded by Evangelical leader Tony Palmer who was killed in a road accident last July. Palmer became friends with Cardinal Jorge Mario Bergoglio when he worked in Buenos Aires as international ecumenical officer of the Communion of Episcopal Evangelical Churches.

Salt Lake City Brigham Young Masonic Mormon Cult Wants In On Prophetic End-Times NWO 666 Satanic One-World Church: To Be First U.S. City To Host Parliament Of World Religions

The Beehive State will welcome the world’s largest and most historic interfaith gathering to Salt Lake City in 2015.

This is the first time in 22 years the Parliament of the Word’s Religions has voted to hold its conference in the United States.

“America is the home base of the interfaith movement, and it’s about time the Parliament come back home,” Parliament Chair Imam Abdul Malik Mujahid said in an announcement.

Reid Neilson, managing director of the LDS Church’s Historian Department, wrote his doctoral dissertation on the Parliament. Neilson pointed out the significance of the Parliament’s choice of Salt Lake City, the global center for the Church.

“This says the Church is being taken seriously,” Neilson said. “We are a global face and should be included in any major global conversation.”


When Apple and Google unveiled new encryption schemes last month, law enforcement officials complained that they wouldn’t be able to unlock evidence on criminals’ digital devices. What they didn’t say is that there are already methods to bypass encryption, thanks to off-the-shelf digital implants readily available to the smallest national agencies and the largest city police forces — easy-to-use software that takes over and monitors digital devices in real time, according to documents obtained by The Intercept.


We’re publishing in full, for the first time, manuals explaining the prominent commercial implant software “Remote Control System,” manufactured by the Italian company Hacking Team. Despite FBI director James Comey’s dire warnings about the impact of widespread data scrambling — “criminals and terrorists would like nothing more,” he declared — Hacking Team explicitly promises on its website that its software can “defeat encryption.”

The manuals describe Hacking Team’s software for government technicians and analysts, showing how it can activate cameras, exfiltrate emails, record Skype calls, log typing, and collect passwords on targeted devices. They also catalog a range of pre-bottled techniques for infecting those devices using wifi networks, USB sticks, streaming video, and email attachments to deliver viral installers. With a few clicks of a mouse, even a lightly trained technician can build a software agent that can infect and monitor a device, then upload captured data at unobtrusive times using a stealthy network of proxy servers, all without leaving a trace. That, at least, is what Hacking Team’s manuals claim as the company tries to distinguish its offerings in the global marketplace for government hacking software.

Hacking Team’s efforts include a visible push into the U.S. Though Remote Control System is sold around the world — suspected clients include small governments in dozens of countries, from Ethiopia to Kazakhstan to Saudi Arabia to Mexico to Oman — the company keeps one of its three listed worldwide offices in Annapolis, Maryland, on the edge of the federal intelligence and law-enforcement cluster around the nation’s capital; has sent representatives to American homeland security trade shows and conferences, where it has led training seminars like “Cyber Intelligence Solutions to Data Encryption” for police; and has even taken an investment from a firm headed by America’s former ambassador to Italy. The United States is also, according to two separate research teams, far and away Hacking Team’s top nexus for servers, hosting upwards of 100 such systems, roughly a fifth of all its servers globally.

Police were reportedly informed about the killing when Marin called them around 2:45 p.m. The report said when officers arrived, they found Marin jogging with a long knife covered in blood.

Suspect charged after Oklahoma man nearly beheaded 

Reports of the Oklahoma beheading came one day after a man with a history of psychiatric problems beheaded his mother in her Long Island, N.Y., apartment and dragged the body and head out onto a street, where onlookers initially thought they were witnessing a macabre Halloween prank, police and witnesses said.

Oklahoma police said the beheading victim is the son is a highway patrol trooper, but that does not appear to be a motive.

“There is no doubt that what we saw is an accurate reflection of what they think. That’s the reason they won’t offer an apology. Everybody knows it’s how the president thinks about the Israeli leadership under (Israeli Finance Minister Yair) Lapid, under Bibi,” said Krauthammer, a syndicated columnist, referencing the prime minister’s nickname.

The Atlantic reported on Tuesday that a senior White House official called Netanyahu a “chickens..t” who was “scared to launch wars,” adding he was only interested in “protecting himself from political defeat.”

“What the Israelis are worried about, more than anything else, is that Obama cuts a bad deal with Iran. The deadline is in three weeks. And, no one is sure what’s going to happen,” Krauthammer said.

“If there is a deal, Iran will be a threshold nuclear power, meaning it’ll be three months away, four months away, at any time it wants in the future, of getting a nuke. And, that, for Israel, would be an existential threat,” he said.

Netanyahu Remarks Showcase Obozo’s ‘Incompetence’

hough the White House quickly backtracked the statement, Krauthammer said it was part of a larger issue about the Obama administration’s inability to successfully navigate foreign policy, adding the U.S. had strained relations with Russia, Turkey, Saudi Arabia and other Gulf states, and with Egypt.

“The foreign policy of the U.S., no matter if you’re a man of the left or a man on the right, however you see this, is at it’s lowest ebb with a president who promised to improve relations” he said. “They are at their low ebb everywhere. This is a measure of his incompetence”

The tension between Obama and Netanyahu exhibited the “worst relations between administrations, Israeli and American, probably in 50 years,” Krauthammer said, adding that Israel’s prime minister was concerned with how the U.S. would approach negotiations with Iran over its nuclear weapons program.

Considering the BOJ’s overnight move, he was absolutely correct.

Back in late September, we posted what Albert Edwards thought at the time was “The Most Important Chart For Investors” which was quite simply, a chart of the USDJPY. Here is the punchline of what he said:

We have long believed that investors ignore Japan at their peril. Time and time again, investors have missed major global market trends that have been catalysed by Japan. We have felt for some time that a fragile Chinese economy could be pushed over the edge by a further yen devaluation – in many ways a replay of the Asian crisis of 1997. And just as the Chinese real economy data has taken a turn for the worse in August, the yen has slipped below a key 15-year support level against the dollar. This is probably the most important chart investors should focus on. The next phase of global currency wars may have begun.

We have written previously that Japan?s QE and the associated yen weakness could trigger a re-run of the 1997 Asian crisis, only this time sucking in the Chinese renminbi. The yen has just broken below a key long-term support and after a brief technical pull-back, its decline is likely to accelerate. This will trigger a wave of profit-crushing deflation flowing from east to west. Andrew Lapthorne has just written a great note on Japanese equities. He says yen weakness, not corporate self-help, is the key to Nikkei outperformance, with Germany looking particularly vulnerable. It looks as if yen weakness is what we’ve now got!

Staring long and hard at the Yen/$ chart, I think that, in the current circumstances, the yen/$ will head to 120 pretty quickly – perhaps after a short reinvigorating retracement. And, if the dollar’s ascent is given extra impetus by the DXY also breaking out, a decline in the yen below Y120 will see an end to its 30-year uptrend – a trend that has relentlessly exported deflation from the west to Japan. Sound far-fetched? One of the few things I have learnt over 30 years in this industry is that when traders decide the yen/US$ starts to move it can jump by Y10 or Y20 very, very quickly indeed.

“The Most Important Chart For Investors” Flashback, And Why USDJPY 120 Is Now Coming Fast 

So for all those who missed it, here it is again, because it explains not only where the Yen is headed next, but why, sadly, this could well be the end of Japan and the mirage of a recovery that has had everybody hypnotized for the past 6 years.

Albert Edwards Presents “The Most Important Chart For Investors”

Which incidentally has nothing to do with stocks or bonds, and everything to do with all-important FX (which just happens to drive all correlation and risk pairs around the globe thanks to the far greater embedded leverage in FX, and is why all “modern” traders focus almost entirely on the USDJPY and EURUSD).

Specifically, as SocGen’s Albert Edwards notes “we show on the front page chart what I believe to be the key chart investors should be focusing on at present. It shows the yen breaking down against the US dollar. This may be more than just a strong dollar story on the back of Fed tightening however, as it seems the yen has now also broken key support levels against the euro. This is a weak yen story. Though there are good fundamental explanations for recent dollar strength vis-à-vis both the yen and the euro, often commentators like to find a fundamental story to fit market events even when price movements have occurred without any clear fundamental explanation ? for we teenage scribblers (as ex-UK Chancellor Nigel Lawson dismissively called us) all have to fill those column inches of commentary.”

Wait, Albert is now a chartist? So it would appear, with a few large caveats:

Sometimes it is very clear to me that instead of fundamentals driving prices, it is the charts or technicals that are important. Hence I have long been an advocate of keeping one eye on the charts to see if a major support or resistance has been broken. The very fact that the markets contain so many followers of technical analysis means that the soothsaying of chartists can actually be self-fulfilling. Nowhere is this more true than in the world of foreign exchange (FX) trading where fundamentals often play a peripheral role, even in the medium term. And in a world where momentum investing has become more ?fashionable?, FX is the one area where a clear market trend is especially seized upon with relish.
We couldn’t agree more, since we ourselves enjoy point out, more often than not, when various algos activate momentum ignition strategies in the USDJPY to push the broader S&P 500 above (never below) key resistance levels. In fact, it was on Zero Hedge where we pointed out last night the extreme oversold level of the Yen. Edwards, however says to ignore this, and instead to focus on what may be historic weakness in the Yen, which in turn will clobber the global economy.

… if I am right and the yen runs sharply lower from here, then this will spell real trouble for the global economy. (Do not be fooled if there is now a pause in yen weakness or even a partial retracement from these levels, as the rapidity of recent moves means the yen is now extremely oversold against the dollar ? i.e. the daily RSI=88. This should be the pause that reinvigorates the new trend).
Why does a rapidly weakening yen spell trouble for the global economy?

First, because the Chinese economy will see a further rise in its already strong real exchange rate, especially if other Asian currencies are pulled down with the sliding yen. This will hurt the Chinese economy which, from August data, appears to be weakening again. The strengthening renminbi will also exacerbate deflationary pressures further.

Second, a weak yen spells trouble for the west as a wave of deflation washes in from the rapidly devaluing east. This reverses a decade long trend. I believe that profits growth is so anaemic in the west that this monetary tightening via strengthening exchange rates could in itself be sufficient to send US and European profits into outright decline and subsequently their economies into recession (via a contraction in the investment spending). That is why this FX technical break is so important
That’s what could happen. Here is why Edwards believes, it will happen.

We have long believed that investors ignore Japan at their peril. Time and time again, investors have missed major global market trends that have been catalysed by Japan. We have felt for some time that a fragile Chinese economy could be pushed over the edge by a further yen devaluation – in many ways a replay of the Asian crisis of 1997. And just as the Chinese real economy data has taken a turn for the worse in August, the yen has slipped below a key 15-year support level against the dollar. This is probably the most important chart investors should focus on. The next phase of global currency wars may have begun.

We have written previously that Japan?s QE and the associated yen weakness could trigger a re-run of the 1997 Asian crisis, only this time sucking in the Chinese renminbi. The yen has just broken below a key long-term support and after a brief technical pull-back, its decline is likely to accelerate. This will trigger a wave of profit-crushing deflation flowing from east to west. Andrew Lapthorne has just written a great note on Japanese equities. He says yen weakness, not corporate self-help, is the key to Nikkei outperformance, with Germany looking particularly vulnerable. It looks as if yen weakness is what we’ve now got!

Staring long and hard at the Yen/$ chart, I think that, in the current circumstances, the yen/$ will head to 120 pretty quickly ? perhaps after a short reinvigorating retracement. And, if the dollar’s ascent is given extra impetus by the DXY also breaking out, a decline in the yen below Y120 will see an end to its 30-year uptrend – a trend that has relentlessly exported deflation from the west to Japan. Sound far-fetched? One of the few things I have learnt over 30 years in this industry is that when traders decide the yen/US$ starts to move it can jump by Y10 or Y20 very, very quickly indeed.
Remember that “shocking” CPI print from last week? If the SocGen strategist is right, prepare for many more such “stunners” as Japan makes deflation-exporting its only business model, one which could well crush the economies of Europe, China, and the US… and Japan! Case in point: recall what just happened to Sony last week. But the all important offset, a rising global stock market, should make it all better at least until the entire economic base is so hollowed out, not even algos can dismisses the record divergence between stock market myth and economic reality.

Edwards’ bottom line: “If a clear break in the yen downwards against both the dollar and euro is occurring, not only will this spell trouble for the beleaguered Chinese economy and exacerbate deflation in the west, but it will also break the spell of German economic dominance.”

* * *

And here is what Albert told us moments ago:

The amazing thing is how little interest there is with western investors about Japan and how it effects US or European portfolios

Notwithstanding the fact that it is the 3rd biggest economy in the world by a long way (the same size as Germany and France added together if you look at it the right way ie current exchange rates rather than PPP)

Little understanding out there what yen devaluation means for Chinese renmimbi and how they will be forced to devalue too

ECB money printing will never be able to compete with Japn. The euro might be going down v the dollar but it will be going up against theyen

Little understanding how, not only will eurozone be going into recession and deflation but that Germany will be the weakest economy in zone. Once Germany’s budget deficit starts to rise sharply as a result of their recession the new mad balanced budget act will kick in and they will be cutting spending aggressively. Expect the eurozone to disappear down a black hole!

New British government threats that a Christian school, which previously was rated “good” and “excellent,” may be closed if it doesn’t promote “other faiths” are based on new regulations that need to be reviewed, according to school officials.

Christians outraged by orders to teach ‘other faiths’

WND reported the U.K.’s official education inspector told an independent Christian school that it is out of step with “British values” prescribed by the government and must invite someone from another faith, such as a Muslim imam, to lead assemblies or it risks being closed.

The threat comes amid a series of new school inspections imposed by the government in response to a “Trojan horse” scandal in which several public schools in Birmingham, England, were taken over by Muslim managers who imposed Islamic education standards.

The U.K.’s Office for Standards in Education, Children’s Services and Skills, known as Ofsted, then established new rules requiring the active promotion of “British values” such as tolerance.

Consequently, the government sent a letter to Trinity Christian School in Reading that it was failing to “meet the new requirements for the spiritual, moral, social and cultural development of pupils.”

But that was only months after the government’s inspection of the program found the school “good” in most categories.

And on the topic at hand, the government report, as of November 2013, said: “The provision for pupils’ spiritual, moral, social and cultural development is excellent. Every care is taken to provide pupils with plentiful opportunities to enhance their spiritual understanding and development through the biblically based curriculum and daily Christian assemblies that are in keeping with the ethos of the school. … Pupils are well prepared for life in modern, multicultural, democratic British society through the teaching of the Christian principle to ‘love thy neighbor’ as found for example in the teaching of the biblical story of the Good Samaritan.”

The nonprofit British charity Christian Institute has said it may mount a legal challenge to the changes.

Vatican Radio On Need For U.N., U.S., And Rome To Form End-Times Superchurch Featuring Petrus As “Peace Archetype”

Call to action for ‘Global Covenant of World Religions’

Why Rome is so important is it’s become an address by which people are projecting perhaps on to Pope Francis, the Catholic Church, but again the archetype of Saint Francis, who stood for peace, and was courageous enough to go, in the 13th century during the crusades, to reach out to a sultan – that archetype is actually interestingly been invoked. So I believe that a number of the world’s religious leaders are dropping through Rome more than ever before, and appealing for that type of neutral brokerage, a third side…..you’re seeing hopeful signs of people reaching out, courageous stands for peace and renunciation of violence….”

There are bits and pieces and streams of interfaith laws that talk about protection of people and religion but in fact it’s not working.

Meanwhile, The French Are Revolting… 

Dozens of Ex-Gitmo Prisoners Joining Prophetic Antichrist NWO Tool AKA ISIS

The news that some of the prisoners leaving Guantanamo are joining militant forces may complicate President Barack Obama’s inaugural promise in 2009 to shut down the facility, which was opened in the wake of the NWO 9/11 attacks.

A senior administration official said earlier this month that The NWO Antichrist Obozo 911 Ebola POTUS Clown is considering the use of Crypto Fascist 666 executive power to override a congressional ban on bringing Guantanamo Bay detainees to the United States, which would allow him to achieve his goal of closing the detention facility.

ISIS is plotting online to kill Western civilians with EBOLA and poisoned needles, Spanish security chief warns

ISIS is urging supporters in the West to kill civilians by any means possible – including using Ebola as a chemical weapon and stabbing people with poisoned needles, a senior Spanish politician claims.

Mr Martinez, the second in command in Spain’s interior ministry, said investigators had identified ‘many examples’ of threats to use Ebola as a chemical weapon. He pointed out three specific cases in which aspiring jihadis ‘linked to ISIS’ had used internet chat rooms to seriously discuss the viability of harnessing the deadly virus and other toxins as part of a new terrorism offensive, according to Spain’s RTVE media company.

One conversation, identified as having taken place between ISIS sympathisers in mid-September, referred to ‘the use of Ebola as a poisonous weapon against the United States,’ he claimed.
Another conversation reportedly saw militants working out how best to employ ‘deadly chemical products’ they had stolen from laboratories.

Rep. Paul Broun: Obozo And ‘Incompetent Boob’ At CDC Are Exposing America To Ebola

Tom Freiden, who heads the Centers for Disease Control and President Obama want you to have Ebola, and so they’ve ushered in into the United States says a Georgia congressman.

After suggesting that President Obama may want Americans to contract the Ebola virus, Rep. Paul Broun, R-Ga., told Rick Wiles of “Trunews” yesterday that the decision to send U.S. military service members to West Africa on a relief mission may end up bringing the Ebola epidemic back to the U.S.

“Barack Obama’s using the military to actually expose them which could expose further people across this country,” he said.

Broun added that the Joint Chiefs of Staff and other military officials should have defied orders to organize a military operation in West Africa…

The congressman also called CDC director Dr. Tom Frieden an “incompetent boob” who “needs to be removed ASAP”…

As the Father hath loved me, so have I loved you: continue ye in my love.

10 If ye keep my commandments, ye shall abide in my love; even as I have kept my Father’s commandments, and abide in his love.

11 These things have I spoken unto you, that my joy might remain in you, and that your joy might be full.

12 This is my commandment, That ye love one another, as I have loved you.

13 Greater love hath no man than this, that a man lay down his life for his friends.

14 Ye are my friends, if ye do whatsoever I command you.

15 Henceforth I call you not servants; for the servant knoweth not what his lord doeth: but I have called you friends; for all things that I have heard of my Father I have made known unto you.

16 Ye have not chosen me, but I have chosen you, and ordained you, that ye should go and bring forth fruit, and that your fruit should remain: that whatsoever ye shall ask of the Father in my name, he may give it you.

17 These things I command you, that ye love one another.

18 If the world hate you, ye know that it hated me before it hated you.

19 If ye were of the world, the world would love his own: but because ye are not of the world, but I have chosen you out of the world, therefore the world hateth you.

20 Remember the word that I said unto you, The servant is not greater than his lord. If they have persecuted me, they will also persecute you; if they have kept my saying, they will keep yours also.

21 But all these things will they do unto you for my name’s sake, because they know not him that sent me.

22 If I had not come and spoken unto them, they had not had sin: but now they have no cloak for their sin.

23 He that hateth me hateth my Father also.

24 If I had not done among them the works which none other man did, they had not had sin: but now have they both seen and hated both me and my Father.

25 But this cometh to pass, that the word might be fulfilled that is written in their law, They hated me without a cause.


Jesus told this ·story [parable] to some people who ·thought they were very good [were confident of their own righteousness] and ·looked down on [scorned; despised] everyone else: 10 “Two men went up to the Temple [courts] to pray, one a Pharisee and the other a tax collector [C despised by their fellow Jews because they worked for the hated Romans and were notorious for extortion]. 11 The Pharisee ·stood alone and prayed [or stood and prayed about himself], ‘God, I thank you that I am not like other people—thieves, ·cheaters [evildoers; unrighteous people], adulterers—or even like this tax collector. 12 I fast twice a week [C Pharisees commonly fasted on Monday and Thursday], and I ·give one-tenth of [pay tithes on] everything I get!’

Being Right with God 

13 “[L But] The tax collector, standing at a distance, would not even ·look up [L raise his eyes] to heaven. But he beat on his chest [C a sign of sorrow and remorse] and said, ‘God, have mercy on me, a sinner.’ 14 I tell you, when this man went home, he was ·right with God [justified], ·but the Pharisee was not [L rather than that (other) man]. [L Because] All who ·make themselves great [exalt themselves] will be made humble, but all who make themselves humble will be ·made great [exalted].”

the four angels who had been allowed to harm the land and the sea.


“Do not harm the land or the sea or the trees,” he said. “Wait until we mark with a seal the foreheads of those who serve our God.”

And when he had opened the seventh seal, there was silence in heaven about the space of half an hour.

2 And I saw the seven angels which stood before God; and to them were given seven trumpets.

3 And another angel came and stood at the altar, having a golden censer; and there was given unto him much incense, that he should offer it with the prayers of all saints upon the golden altar which was before the throne.

4 And the smoke of the incense, which came with the prayers of the saints, ascended up before God out of the angel’s hand.

5 And the angel took the censer, and filled it with fire of the altar, and cast it into the earth: and there were voices, and thunderings, and lightnings, and an earthquake.

6 And the seven angels which had the seven trumpets prepared themselves to sound.

7 The first angel sounded, and there followed hail and fire mingled with blood, and they were cast upon the earth: and the third part of trees was burnt up, and all green grass was burnt up.

Revelation 8

It seems money does grow on trees…

A gentle reminder – Blackstone’s Larry Fink met Shinzo Abe two days ago… (the same Blackstone that warned of carnage if selling ever begins in corporate bond land)… clearly the Japanese panicked!

Welcome to your fundamental-driven markets!! The farce is almost complete. The day after The Fed stops QE, The BoJ raises its bond AND STOCK buying program!!!!

In a surprise move given all the recent congratulatory bullshit from Abe and Kuroda on breaking the back of Japan’s deflation and bring about recovery (forgetting to mention record high misery index, surging bankruptcies and a crushed consumer), the Bank of Japan (by a 5-4 vote) raised its bond-buying program from JPY 70 trillion to 80 trillion… and triple its ETF buying to JPY 3 trillion. This move, on the heels of more confirmation of broader foreign asset purchases in Japan’s GPIF sent USDJPY instantly gapping 1 big figure higher to 110.30 and Nikkei futures instantly rose 400 points. S&P futures are also surging. Gold and silver are tanking and TSY bonds are selling off.

Markets Explode Higher As Bank Of Japan Goes All-In-er; Increases QE To JPY 80 Trillion

The S&P hits a record high thank to a few hundred billion in more money printing by a central bank, and guess who pops up to take credit for the market, pardon, the economy?

This guy

The Antichrist NWO 666 Team Suicide Vampire Squid POTUS Obozo 911 Ebola Clown Speaks On The Economy – Live Feeding Of The Beast

Only $511,829,000,000 in the last five days. If they hit the limit today will bring it up to $811,829,000,000 in four days.

They changed the rate for 10/30 & 10/31 to 5 bp.



“$811,829,000,000 in four days.” …. if this isn’t the red flag of the week… just four days and we need damn near a trillion dollar pump.

That is a pretty expensive habit motherfuckers, time to seek some real help.

Nikkei Futures Halted Limit Up (+1100) As USDJPY Tops 112

Bwuahahahaha… Nikkei futures halted limit up – over 1100 points post-BoJ (+1400 post-FOMC) as USDJPY tops 112 (up 4 handles post-FOMC) to its highest since Jan 2008.

Two days ago, when QE ended and knowing that the market is vastly overstimating the likelihood of a full-blown ECB public debt QE, we tweeted the following:

Zero Hedge @Zerohedge

It’s all up to the BOJ now.

2:02 PM Oct 29 2014

Little did we know how right we would be just 48 hours later.

Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High

But while Japan’s eagerness to bet its retirees lifetime savings on GoPro had been well-known previously, it also meant that someone would have to step in and buy the hundreds of billions of JGBs the GPIF had to sell in what over the past year became the world’s most illiquid bond market, often going for days without a single transaction.

That someone, a few hours ago, was revealed to be the Bank of Japan, which in addition to now clearly becoming the only buyer of only resort for Japanese bonds, has tipped its hands that it is going all in on pushing the Nikkei higher at all costs, even if it means crushing the domestic economy, something which even Keynesian “experts” say will be the outcome if the Yen continues to slide below 110 for the dollar.

So for all those wondering why futures are back to all time highs, here is the reason:

No wait, sorry, that’s reality – something that hasn’t mattered to markets since 2008. Here is the reason, all thanks to CTRL-P:

In other words, several days after Larry Fink mysteriously visited Abe, the BOJ announced it would do everything in its power push the Nikkei into green for the year, which it did with its announcement overnight, and to truly crush the local population’s buying power.

Kuroda also had some truly comedic one liners:

And now that Japan has gone all in on runaway inflation, we expect that Abe’s reign of terror to be cut short as finally the people’s anger at this Keynesian madman on top of it all will finally explode.

The good news in all of this is that the desperation is increasingly palpable, and since Japan is about to go pro in deflation exporting to the US and mostly Europe, expect even more violent reprisals from the world’s other central banks and so on until finally it is only central banks left trading with each other. Much like today.

In the meantime, here is what is going on:

S&P 500 futures up 1.2% to 2011.6
Stoxx 600 up 1.4% to 335.5
US 10Yr yield up 1bps to 2.32%
German 10Yr yield down 1bps to 0.84%
MSCI Asia Pacific up 1.3% to 142.2
And the punchline:

Gold spot down 2.2% to $1172.3/oz
Because in the new normal diluting your currency even more is even more negative for undilutable currencies.

A Massive FX Quake Hits Japan: This Is What It Looked Like

When central bankers go wild…

The leaves of the tree are for the healing of all the nations.

Revelation 22

And it was given unto him to make war with the saints, and to overcome them: and power was given him over all kindreds, and tongues, and nations.

Revelation 13

A third of ·all the people on earth [humanity; mankind] were killed by these three ·terrible disasters [plagues] coming out of the horses’ mouths: the fire, the smoke, and the sulfur. 19 The horses’ ·power [authority] was in their mouths and in their tails; their tails were like snakes with heads [12:9; Gen. 3:1–7], and with them they ·hurt [damaged; injured; wounded] people.

Revelation 9 

20 The ·other [rest of the] people who were not killed by these ·terrible disasters [plagues] still did not ·change their hearts and turn away from what they had made with their own hands [L repent from the works of their hands]. They did not stop worshiping demons and idols made of gold, silver, bronze, stone, and wood—things that cannot see or hear or walk [Ps. 115:4–7; 135:17; Jer. 10:1–16]. 21 These people did not ·change their hearts and turn away from [repent of] murder or ·evil magic [sorcery], from their ·sexual sins [fornication] or stealing.

Most people in the English-speaking parts of the world missed Putin’s speech at the Valdai conference in Sochi a few days ago, and, chances are, those of you who have heard of the speech didn’t get a chance to read it, and missed its importance. (For your convenience, I am pasting in the full transcript of his speech below.) Western media did their best to ignore it or to twist its meaning. Regardless of what you think or don’t think of Putin (like the sun and the moon, he does not exist for you to cultivate an opinion) this is probably the most important political speech since Churchill’s “Iron Curtain” speech of March 5, 1946.

The Russian blogger chipstone summarized the most salient points from Putin speech as follows:

1. Russia will no longer play games and engage in back-room negotiations over trifles. But Russia is prepared for serious conversations and agreements, if these are conducive to collective security, are based on fairness and take into account the interests of each side.

2. All systems of global collective security now lie in ruins. There are no longer any international security guarantees at all. And the entity that destroyed them has a name: The United States of America.

3. The builders of the New World Order have failed, having built a sand castle. Whether or not a new world order of any sort is to be built is not just Russia’s decision, but it is a decision that will not be made without Russia.

4. Russia favors a conservative approach to introducing innovations into the social order, but is not opposed to investigating and discussing such innovations, to see if introducing any of them might be justified.

5. Russia has no intention of going fishing in the murky waters created by America’s ever-expanding “empire of chaos,” and has no interest in building a new empire of her own (this is unnecessary; Russia’s challenges lie in developing her already vast territory). Neither is Russia willing to act as a savior of the world, as she had in the past.

6. Russia will not attempt to reformat the world in her own image, but neither will she allow anyone to reformat her in their image. Russia will not close herself off from the world, but anyone who tries to close her off from the world will be sure to reap a whirlwind.

7. Russia does not wish for the chaos to spread, does not want war, and has no intention of starting one. However, today Russia sees the outbreak of global war as almost inevitable, is prepared for it, and is continuing to prepare for it. Russia does not war—nor does she fear it.

8. Russia does not intend to take an active role in thwarting those who are still attempting to construct their New World Order—until their efforts start to impinge on Russia’s key interests. Russia would prefer to stand by and watch them give themselves as many lumps as their poor heads can take. But those who manage to drag Russia into this process, through disregard for her interests, will be taught the true meaning of pain.

9. In her external, and, even more so, internal politics, Russia’s power will rely not on the elites and their back-room dealing, but on the will of the people.

Putin to Western elites: Play-time is over

In this speech, Putin abruptly changed the rules of the game. Previously, the game of international politics was played as follows: politicians made public pronouncements, for the sake of maintaining a pleasant fiction of national sovereignty, but they were strictly for show and had nothing to do with the substance of international politics; in the meantime, they engaged in secret back-room negotiations, in which the actual deals were hammered out. Previously, Putin tried to play this game, expecting only that Russia be treated as an equal. But these hopes have been dashed, and at this conference he declared the game to be over, explicitly violating Western taboo by speaking directly to the people over the heads of elite clans and political leaders.

To these nine points I would like to add a tenth:

10. There is still a chance to construct a new world order that will avoid a world war. This new world order must of necessity include the United States—but can only do so on the same terms as everyone else: subject to international law and international agreements; refraining from all unilateral action; in full respect of the sovereignty of other nations.

To sum it all up: play-time is over. Children, put away your toys. Now is the time for the adults to make decisions. Russia is ready for this; is the world?

Despite Surprise Rate-Hike, Russian Ruble Crashes Most In 6 Years

Yesterday’s record-breaking surge in the Ruble appears, as we warned, to have been front-running today’s rate-hike announcement… and despite its surprise size, it is disappointing the market. The 5%-plus swing higher in the Ruble yesterday has been notably retraced as the Russian currency plunges (biggest drop in almost 6 years) after the central bank hiked rates 150bps (expectations were broadly of a 50bps hike) but it appears the ‘whisper’ number was a 200bps hike and a shift in FX policy to more active intervention. The inituial rip rally instantly faded and despite low liquidity due to Russian holidays, USDRUB is back over 43 – which would be a new record low close if it holds.

Russian Central Bank disappointed…

22 of 31 economists in Bloomberg survey forecast 50bps increase; 2 predicted move to 9%; increases of 25bps and 75bps forecast by 1 each; 5 economists projected no change

The reaction:


Second Spaceship Crash In One Week: Virgin Galactic’s SpaceShipTwo Suffers “In-Flight Anomaly” – Live Feed 

For the second time in a week, a vessel due to go to space has crashed. As SpaceFlightNow reports, Virgin Galactic is reporting its SpaceShipTwo suborbital rocket plane experienced an “in-flight anomaly” on a powered test flight over California’s Mojave Desert on Friday. Two pilots were believed to be aboard SpaceShipTwo, according to the scanner discussion. SpaceShipTwo test flights customarily carry two pilots.

According to scientists from NASA and NOAA, the Antarctic ozone hole reached its annual peak on September 11 with the size of 24.1 million square kilometers (93 million square miles). Overall, the 2014 ozone hole is smaller than the large holes of the 1998–2006 period, and is comparable to 2010, 2012, and 2013.

2014 ozone hole update

For at least 27 minutes, the SIP which processes Tape A and Tape B stocks was not working properly. This means that any dark pool, stock exchange or retail broker which relies on the SIP for public quotes was pricing off of incorrect quotes. Of course, any firm which pays for exchange direct feeds was still pricing off of accurate information. Therefore, for at least 27 minutes, an “information asymmetry” existed. You may remember the term “information asymmetry” from last year’s Nasdaq SIP outage when the CEO of Nasdaq said:

“We knew professional traders had access to individual data feeds, but the traditional long investor, retail investor now didn’t have the same information, because of that, we halted the market. The high frequency firms would have access to proprietary feeds from individual exchanges. The consolidated feed which we operate had a problem, wasn’t giving quotes out. We had to halt the market because of that. We didn’t want to have a situation where information asymmetry, as you say.”
?Apparently, the NYSE didn’t think it was necessary to halt trading in their listed stocks. But some dark pools took responsibility and decided to halt trading at their venues. According to Bloomberg , “ITG had to close its Posit dark pool for about 30 minutes and Goldman Sachs Group Inc. briefly halted trading in its Sigma X dark pool.” This makes us wonder about all the other venues that did not halt trading yet rely on the NYSE SIP for pricing.

– Did their customers receive accurate pricing?

– Were retail market orders, which normally receive sub-penny price improvement, priced off of incorrect and stale quotes?

?In addition to possible pricing errors, there was another situation which occurred right in the middle of the SIP outage. At 1:19:19 PM ET, an extremely high number of trades occurred in the E-Mini futures contract. According to Nanex, there were 15,263 contracts that traded during this second. Almost immediately, quote and trade levels spiked on the US equity markets in reaction to this e-mini barrage of trades.

– Were these E-Mini trades placed to take advantage of the misplacing in the equities market?

– Could the E-Mini’s trades have been put through to ignite momentum in a stock market which was already suffering from a liquidity issue due to the lack of correct quotes?

Unfortunately, we don’t know the answer to these questions and doubt that our regulators (even if they knew to ask these questions) would have the data to find the answers. Since the CFTC regulates the E-Mini futures and the SEC regulates the stock market, they maintain two sets of different data. This was evidenced clearly after the May 2010 Flash Crash when it took a Joint CFTC/SEC committee almost 6 months to analyze 45 minutes of trading.

The Day The Market Crashed – The Sequel 

We live in a cross-asset world where high speed traders routinely position multiple asset classes. Unfortunately, our regulators still seem to live in a single asset world. We believe that the CFTC and the SEC should create a Joint Task Force which could quickly be put into action when events like yesterday occur. This task force would be able to share and compare data to determine if any nefarious behavior caused or took advantage of an outage.

One last ironic point about yesterday’s SIP outage. At the exact same time the outage was occurring, an Exchange Leaders Panel ?at a SIFMA event in NYC was just kicking off. The session was billed as:

“This session will explore the competitive, structural and regulatory landscape that Exchanges operate in today, and the challenges and opportunities facing the industry in the year to come.”
No doubt those exchange leaders have some more challenges to address now.

What today’s JPY-carry-trade-enabling Bank of Japan exuberance means to the ‘average joe’…