T-5 ZERO HOUR Jubilee Count Down Number Of The Beast Federal Reserve Blows Up 1/4 Point

by amongthenumberedsaints

In the first two weeks of August 2008 (just a month before Lehman imploded), as tensions built in US financial markets, Antichrist Communist China weakened the Yuan for 10 straight days. Tonight, Antichrist Communist China just extended its streak of weakening the Yuan fix to 9 days (for an aggregate 1.4% devaluation, the largest such drop outside of August’s devaluation in history). This pushes the Yuan back to June 2011 levels.

Yuan fix at lowest since June 2011…

Antichrist Communist China Weakens Yuan For 9th Consecutive Day, Longest Streak Since 2008 

And finally, this chart raised our eyebrows… as the now ‘vicious’ Petrodollar circle of death accelerates…

showER BefORe FED DeADHEad RATe hiKe 

November 2005, the Federal Reserve announced that it would no longer be tracking the aggregate money supply. It issued a terse, cryptic 143-word press release entitled the “Discontinuance of M3.” M3 was the broadest member of the big 4 of monetary aggregates published by the Fed — M0, M1, M2, and M3 that the Fed had compiled monthly since 1959.

John Williams of Shadowstats noted the oddity of the announcement, opining that M3 was probably the most important statistic produced by the Fed and the best leading indicator of economic activity and inflation. The Fed’s lack of interest in the components of M3 can be directly linked to its inability to foresee the 2008 collapse of the financial system.

Death of M3: The 10th Anniversary

A New York Stock Exchange (NYSE) Trader Update dated November 16, 2015, abruptly announced:

Subject to effectiveness of a rule filing with the SEC, NYSE and NYSE MKT will no longer accept new Stop Orders and Good Till Cancelled (“GTC”) Orders beginning February 26, 2016. Additionally, all existing GTC and Stop Orders residing on the NYSE book will be cancelled.

The NYSE ending GTC orders – which typically expire in 90 days anyway – isn’t a big deal because brokerages have their own in-house GTC orders investors can still employ.

And brokerages will still offer stop-loss orders. The only difference will be they’ll get triggered in-house and then sent as a limit or market order to be executed.

Since investors can still place stop orders and GTC orders with brokerages, the NYSE saying it would no-longer accept stop orders doesn’t appear to be earth-shattering.

But it is. Let me tell you why…

The only explanation for the Exchange’s rule change came from an unnamed NYSE spokeswoman whose email response to inquiries was:

Many retail investors use stop orders as a potential method of protection, but don’t fully understand the risk profile associated with the order type. We expect our elimination of stop orders will help raise awareness around the potential risks during volatile trading.

What the NYSE (which is regulated by the Securities and Exchange Commission and has to have all its rules approved by the SEC), isn’t saying is that with the approval of their regulator, they’re ending two order types investors have used on the Exchange to limit their losses for over 100 years.

And they’re doing it because the public face of trading, the venerable New York Stock Exchange, the stock market as we know it, is broken and they don’t want to take responsibility for what has happened and what is going to happen.

In other words, because the SEC has lost control of stock market trading on the venues it regulates, it is passing responsibility for investor losses along to brokerage houses and, ultimately, to individual investors themselves.

Stop-loss orders are mostly used by investors who aren’t able or willing to watch the market all the time. By putting down a stop order, an investor would could “stop the loss” on a position if the price of his stock fell to a predetermined level.

A stop order becomes a “market” order when the stop-loss price is reached.

For example, if you own a stock at $50 and want to sell it by using a stop order if it falls to $45 (for a 10% loss), once the stock trades $45 your stop-order becomes a “market” order and your stock is sold at the next best price someone is willing to pay. You may sell stock at $45, or less, depending on where other buyers are bidding for your stock.

There used to be lots of “standing” orders left with NYSE specialists and Nasdaq market-makers, so when a stop order was triggered the seller could usually sell his stock at or just below where his stop order became a market order.

When there were lots of standing orders waiting to buy and sell shares, individual stocks and the market didn’t have the huge swings like they have today.

Buy orders could always get cancelled and a stock or the market could fall steeply. But buyers and sellers typically lined up to transact at prices considered fair and orderly.

That’s all changed.

How Bad Management Thins Market Liquidity

The U.S. has 14 stock exchanges and dozens of “dark pools.” And because competing trading venues need orders to create transactions, they “pay for order flow” from brokerage houses and institutional money managers. All that competition spreads orders far and wide. So there’s no singular exchange or place where hundreds or thousands of “standing” orders reside waiting to be executed.

By not properly managing competing trading venues and allowing unrestrained selling of order flow, the SEC aided and abetted the “thinning of liquidity.”

The minimum increment a stock can be traded in has also changed.

Up until 2001, stocks mostly traded in increments of an eighth of a dollar, or twelve and a half cents. Now, under “decimalization,” stocks trade in increments as small as a penny.

What seemed like a good idea to narrow spreads – the difference between the price someone is willing to pay for a stock and the price someone is willing to sell that stock for (which used to be $0.125 and can now be $0.01) – turned out to be another nail in the market’s coffin.

While decimalization theoretically reduced spreads and transaction costs, in practice what happened is investors didn’t leave their orders standing around because intermediaries (meaning specialists on the NYSE and Nasdaq market-makers) could take a small one-penny per-share risk and buy stock a penny ahead of a standing order they saw residing on their books.

By not correcting the mistake of moving to decimalization, the SEC allowed short-term traders to front-run standing orders and use those standing orders as a backstop to exit their trades if prices go the wrong way. That unfair treatment caused investors to leave fewer standing orders in the market, which aided and abetted the “thinning of liquidity.”

Of course the NYSE can’t say any of that.

All they can say is they won’t accept stop orders.

They should say it’s because market liquidity is so thin on big down days, thanks to what the SEC has allowed, that stop orders will get filled way below where they should.

And the NYSE and the SEC now want you to blame your brokerage house for that, or blame yourself for not being more aware of the risks inherent in stop orders.

How to Protect Your Profits Now

My advice is to keep using your stop loss orders as long as your brokerage lets you because using stop orders is smart.

Every empirical study ever done on using stop-loss orders and trailing stops demonstrates they can be incorporated in portfolio management to meaningfully enhance returns.

Just be aware: because of what the SEC allows to happen on their watch, you will get bad fills on your stop orders and you will get stopped out and watch your stock pop right back to some higher level after you’ve been screwed out of your position.

If you choose not to use stop orders, you need to watch the market and your stocks. You can do that by setting up “alerts” on your smartphone or computer to alert you when your positions hit a predetermined price.

And if you keep losing money because the market becomes increasingly volatile, or you’re on the sidelines not making any money because you’re afraid of what’s become of the stock market, send a letter to the SEC and tell them to fire themselves.

They really deserve it.

What the NYSE Isn’t Saying About Its Earth-Shattering Decision 

Well, liftoff has officially begun.

Fed Mouthpiece Reads Liftoff Tea Leaves 

Assuming 25 bps doesn’t tip EM into crisis and/or trigger some kind of dramatic, unforeseen meltdown elsewhere, the Fed is about to embark on the first rate hike cycle in over a decade.

Of course the hike itself isn’t what’s interesting – virtually no one thought the Fed would fold again, even as Antichrist Communist China did its best to create a bit of pre-Yellen drama by stirring up the deval fears with a nod to a new trade-weighted index for the yuan.

In short, it’s now all about reading the “flight path” tea leaves and when it comes to the FOMC and tea leaf reading, there’s only one man for the job.

When last we checked in with billionaire Sam Zell, the real estate mogul was busy offloading some $5.4 billion in apartments from Equity Residential’s portfolio. The 23,000 units were sold to Barry Sternlicht’s Starwood Capital and as we noted at the time, Zell has traditionally had a very keen nose about such things as “market peaks”: the 74 years old is credited with calling the top of the real-estate market in 2007, when he sold another one of his companies, Equity Office Properties Trust, to Blackstone for $23 billion.

Despite his penchant for getting it right, Zell warned last September that when it comes to calling market peaks, “you’ve got to tiptoe [because] if you’re wrong on when, that’s a problem.”

Well on Wednesday, Zell “tiptoed” into an interview on Bloomberg TV and made a rather decisive prediction about where the economy is headed now that the Fed has waited too long to hike.

“I think this interest rate hike is too late,” Zell said, before suggesting that “this economy is closer to falling over than it is to going up.”

Zell’s conclusion: “I think there’s a high probability that we’re looking at a recession in the next twelve months.”

“The central bank has been too cautious and the economy would already be adjusting if it raised rates six to nine months ago, giving Chair Janet Yellen ‘more room if a recession is on the way,'”, Zell says.

Again we see the old “hike so we have room to cut after we cause a recession” argument.

Billionaire Sam Zell Warns Fed Too Late, “Recession Likely In Next 12 Months”

Note that this is entirely consistent with the notion that if, as a result of the Fed missing its window, NAIRU undershoots, if (or, more appropriately “when”) it snaps back, a recession is a virtual certainty if history is any guide. Recall what BNP said last month: “NY Fed Fed President William Dudley recently pointed out that whenever the US unemployment rate has increased by more than 0.3-0.4pp from its low, there has always been a recession. Knowing this, it is perhaps not surprising that the median Fed forecast always shows the unemployment rate levelling off close to its equilibrium. The Fed would presumably be reluctant to forecast that its actions (or lack of them) would cause an undershoot in the unemployment rate, which would more than likely end in a recession.”

Something Strange Is Taking Place In The Middle Of The Atlantic Ocean 

In the latest sign that the world is simply running out of capacity when it comes to coping with an inexorable supply of commodities, three diesel tankers en route from the Gulf to Europe did something rather odd on Wednesday: they stopped, turned around in the middle of the ocean, and headed back the way they came.

“At least three 37,000 tonne tankers – Vendome Street, Atlantic Star and Atlantic Titan – have made U-turns in the Atlantic ocean in recent days and are now heading back west,” Reuters reported, citing its own tracking data.

The Vendome Street actually made it to within 800 miles of Portgual (so around 75% of the way there) before abruptly turning around. “Ship brokers said a turnaround so late in the journey would come at a cost to the charterer,” Reuters notes.

The problem: low prices, no storage capacity, and soft demand.

The Horrifying Truth Americans Are Not Being Told – Antichrist Islamic Cannibalism, Kuru And The End Days 

The Antichrist Muslim Brotherhood in fact was exposed on Al-Tahrir Egyptian TV Ahmad Abdo Maher, discuses the high-school curriculum issued by the highest religious authority in Egypt during the rule of Antichrist MoHAMmad Morsi in which the Antichrist Muslim Brotherhood’s Al-Azhar University encouraged students to cannibalize apostates and Antichrist Muslims who abandon praying. The schoolbook stipulated that the act can be carried out so long the human flesh is eaten uncooked in respect to the dead body and that the act “does not necessitate a governor’s consent or is it punishable by law.”

The point here is it is not just Antichrist ISIS or the Antichrist FSA or any one specific terror group, but cannibalism is a common practice across a number of Islamic terror organizations.

Woman to be stoned to death by Antichrist Iran as world marks UN ‘Human Rights Day’ 

An investigation into Planned Parenthood clinics in Ohio has found that they not only dump fetal remains in a landfill after abortions, but they also “steam-cook” the fetuses.

Christian Today reports that Ohio Attorney General Mike DeWine conducted the investigation of the so-called non-profit healthcare provider and found that they were in violation of “humane” disposal methods of the fetuses which are required by law.

“First, steam-cooking foetuses and then disposing of them in a landfill is not humane,” stated DeWine.

“It will come as a shock to Ohioans to find out that foetuses are being cooked and then they’re being put in a landfill, and they’re going to be mixed in with the garbage and whatever else goes into a landfill,” DeWine continued.

Planned Parenthood immediately filed a lawsuit after being accused of these inhumane practices.

However, Troy Newman, president of the abortion-practitioner watchdog Operation Rescue, told LifeNews.com that Planned Parenthood’s lawsuit was meant to distract from the real issue of their inhumane practices.

“[It’s] an obvious ploy to deflect attention from their own lawbreaking by falsely accusing the attorney general. But perhaps the larger question is if dumping the cooked remains of aborted babies in landfills is inhumane, shouldn’t we also consider the dismemberment deaths of these babies through suction or other procedures more inhumane?” Newman said, getting to the heart of the issue.

Planned Parenthood Reportedly ‘Steam-cooks’ Aborted Fetuses before Disposing of Them 

At 2 p.m. EST, the only thing the financial world will care about and discuss will be the Fed’s [first rate hike in 9 years|epic disappointment]. So for those who still haven’t made up their mind about what the Fed’s [dovish|non-dovish] rate hike means, here is all you need to know.

First, a list of all the key announcements and public statements that everyone will be parsing at a feverish pace, courtesy of Citi:

The schedule

14:00 EST/19:00 GMT: Statement and economic projections
To be released here: http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Statement will detail if anyone dissented to the decision. If so, most likely Evans.
Expected alongside the statement: Implementation/operation details note released by NY Fed regarding lift-off.

NY Fed website press releases: https://www.newyorkfed.org/press/index.html
Adjust the target band: increase overnight reverse repo rate from 0.05% to 0.25bps
Of primary interest will be the size of the overnight reverse repo facility that the Fed will put in place to pull short rates higher. Citi US
Rates Strategy doesn’t think it will be unlimited, but a size large enough that will keep short rates from falling below the 25bp floor – and the size could be as high as USD1tn.
The o/n reverse repo program is meant to be temporary in nature and will be phased out when the need to pull fed funds higher is not needed. It will be interesting to see how long the RRP program will be needed – perhaps till we get closer to 1% on IOER.
Doesn’t expect changes to size of term reverse repo operations or any further guidance on ending re-investments at this stage
14:30 EST/19:00 GMT: Yellen Press conference
Speech text generally first published on her landing page: http://www.federalreserve.gov/aboutthefed/bios/board/yellen.htm
If not first there, then here: http://www.federalreserve.gov/aboutthefed/bios/board/yellen.htm
Watch the press conference live: http://www.federalreserve.gov/mediacenter/media.htm

How are rates hiked in the age of a $4.5 trillion Fed balance sheet? The following Deutsche Bank infographic explains:

Good luck to all.

The Complete Fed Decision Preview: All You Need To Know 

The Federal Reserve voted unanimously on Wednesday to raise interest rates by a quarter point, marking the first increase in more than nine years. The bank raised its fed funds rate to a range of 0.25% to 0.5%, ending an unprecedented seven-year run of near-zero interest rates. The vote was 10-0. The board of directors also raised the discount rate to 1% from 0.75%. Looking ahead, the Fed said it will “carefully’monitor” actual inflation in light of ‘current shortfall.” And given current economic conditions, the bank said interest rates are only likely to increase in a “gradual” manner, ending up at a long-run target of 3.5%. That was unchanged from its September forecast..

Federal Reserve lifts interest rates for first time since 2006 

…and it’s gone.

Zero Hedge website goes down right when Fed announcement took place.

I guess that was the first casualty of the rate hike

On the 7th anniversary of entering ZIRP, and for the first time since June 29th 2006, The Federal Reserve announced today that it will try and raise interest rates:


Of course, the flowery language and dots are as dovish as possible while maintaining some semblance of credibility with regard growth expectations as The Fed unleashes a tightening cycle for the first time in over 11 years.

Pre-FOMC: S&P Futs 2050, 2Y 98bps, 10Y 2.29%, Gold $1072, Oil $36, EURUSD 1.0960

What’s happened since The Fed folded in September? Macro “data” got worse… Market “data” got better…

The Fed has never raised rates in December when stocks were down over the last 6 months…

And when it has raised rates in December, stocks have pushed lower.

The Fed is raising rates today with the VIX above 20 for the first time since 2000…

That did not end well…

The Fed is also raising rates with Junk bonds trading worse that after Lehman…

Fed Hikes Rates, Unleashing First Tightening Cycle In Over 11 Years 

Of course, if this doesn’t work to revive animal spirits, there’s always Plan B….

Northrop Grumman has revealed a tantalizing image of a new stealth ‘superjet’ capable of firing laser weapons.

The so called ‘sixth generation fighter’ is rumoured to fly at supersonic speeds, although Northrop Grumman, who are developing it, say the specifications are still secret.

The stealth craft is expected to use advanced cooling systems to help disguise its laser systems.

Chris Hernandez, Northrop’s vice president for research, technology and advanced design, told BreakingDefence the sixth-gem fighter will be long range because it won’t have many bases to operate from overseas; it must ‘carry a lot of weapons;’ survivability will be key. What do those requirements and physics lead you to?  ‘This looks a lot like a baby B-2 and this is really getting into our sweet spot,’ Hernandez said.

Northrop Grumman has two design teams working on the new aircraft.  However, the firm would not discuss the plane’s speed, saying that would have to wait for clearer direction from the Pentagon in the future. It is expected to use laser weapons – and this has caused major problems around heat.  As Northrop president for aerospace Tom Vice said, managing heat will be key.  ‘Add in all the aircraft’s power and thrust systems, and you have an enormous heat challenge,’ said Hernandez. The craft is expected to be used in 2030.

In April 2012, the Navy issued a formal request for information for the F/A-XX.
It calls for an air superiority fighter with multi-role capabilities to replace the F/A-18E/F Super Hornet and EA-18G Growler aircraft in the 2030s, Boeing and Northrop Grumman are both developing concepts.  Lockheed Martin has been working on next-generation air dominance-related activities with the U.S. Armed Services and most recently the Defense Advanced Research Projects Agency (DARPA) to determine the best way to maintain air dominance in the post-2035 world. In October of 2012, Frank Kendall, Undersecretary of Defense, tasked DARPA to explore concepts for the next generation of air dominance.

In an attempt to break the battle space into smaller pieces, DARPA defined separate focus areas that span capabilities across the air dominance battle space. ‘This decomposition may not be perfect and will most certainly be fine-tuned over time, but it does provide a logical construct for looking at the future battle space,’ said Mark Jefferson, director of Next Generation Air Dominance programs at the Skunk Works.

Previous reports say the superjet might even not have a pilot.

According to the Pentagon, it may partially fall in the hands of artificial intelligence (AI).
Reports say that both the US Navy and Air Force are planning next-generation fighters that don’t have just a human pilot. Future fighter jets may have an AI co-pilot on board that can help with sensory data in addition to autonomously landing the plane on an aircraft carrier. According to the US Naval Institute (USNI), artificial intelligence will feature prominently on the successors to the Boeing F/A-18E/F Super Hornet and the Lockheed Martin F-22 Raptor. The US Navy is working on the F/A-XX and the Air Force on the F-X, with both designed to replace their predecessors by 2030 at the earliest.

‘AI is going to be huge,’ a US Navy official told the USNI.

While the exact purpose of AI in aircraft isn’t known yet, it could have a number of uses from acting as a co-pilot to carrying out autonomous landings.

According to Popular Science the robotic co-pilots would be especially helpful for aircraft carriers, which are difficult to land on.

Recently the Navy’s X-47B experimental drone landed autonomously on an aircraft, demonstrating the usefulness of AI in such a situation. AI could also help with something known as advanced sensor fusion. This involves combining data from various sensors to get a more accurate reading of a situation or location.

The Navy and Air Force are also hoping to get help from industry experts in Silicon Valley to aid them in the design of such sixth-generation fighters.

The stealth superwing: Next generation ‘Air Dominance’ fighter jet that will have built in laser weapons and could even travel at supersonic speeds revealed

The new rules would require drone owners to pay a $5 registration fee. Penalties go up to $27,000 for civil violations, $250,000 for criminal acts with up to three years behind bars.

People, 13 and older, who purchased drones before Dec. 21, 2015, must register the device by Feb. 19, 2016.

FAA announces drone registration rules as report highlights soaring dangers

Antichrist Iran violated a U.N. Security Council resolution in October by test-firing a missile capable of delivering a nuclear warhead, a team of sanctions monitors said, leading to calls in the U.S. Congress on Tuesday for more sanctions on Tehran.

The White House said it would not rule out additional steps against Antichrist Iran over the test of the medium-range Emad rocket.

The Security Council’s Panel of Experts on Antichrist Iran said in a confidential report, first reported by Reuters, that the launch showed the rocket met its requirements for considering that a missile could deliver a nuclear weapon.

“On the basis of its analysis and findings the Panel concludes that Emad launch is a violation by Antichrist Iran of paragraph 9 of Security Council resolution 1929,” the panel said.

Diplomats said the rocket test on Oct. 10 was not technically a violation of the July nuclear deal between Iran and six world powers, but the U.N. report could put Antichrist NWO 666 U.S. President Barack Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown’s administration in an awkward position.

Antichrist Iran has said any new sanctions would jeopardize the nuclear deal. But if Washington failed to call for sanctions over the Emad launch, it would likely be perceived as weakness.

Diplomats said it was possible for the U.N. sanctions committee to blacklist additional Iranian individuals or entities, something Washington and European countries are likely to ask for. But they said Russia and Antichrist Communist China, which dislike the sanctions on Antichrist Iran’s missile program, might block any such moves.

The panel’s report was dated last Friday and went to members of the Security Council’s Iran sanctions committee in recent days. The report came up on Tuesday when the 15-nation council discussed the Antichrist Iran sanctions regime.

It said the panel considered ballistic missiles capable of delivering nuclear weapons to be those that can deliver at least a 500-kg (1,102-pound) payload within a range of at least 300 km (185 miles).

“The Panel assesses that the launch of the Emad has a range of not less than 1,000 km with a payload of at least 1,000 kg and that Emad was also a launch ‘using ballistic missile technology,'” the report said.

Antichrist Iran’s October missile test violated U.N. ban: expert panel 

House of One in Berlin

Egyptian Air Force makes unprecedented flights over Israeli territory, likely with IDF permission, en route to bombing Antichrist Islamic State Suicide Obozo 911 SPECTRE Squid Clown targets in the Sinai

Egyptian Air Force planes have in recent months crossed into Israeli airspaces part of Egypt’s military campaign against the local Sinai affiliate of the Antichrist Islamic State terror group, Ynet learned on Tuesday.

The unprecedented flights, apparently conducted in coordination with the IDF, were conducted mostly in the triangular border area between Israeli territory, Egyptian land, and the southern Gaza Strip.

The flights are believed to be the first time that Egyptian warplanes entered Israeli airspace since the Yom Kippur War in 1973.

The Egyptian aircraft bombed Antichrist NWO 666 IS Suicide Obozo 911 SPECTRE Squid Clown targets mere kilometers away from the Israeli border, in the vicinity of El Arish and Sheikh Zuweid in the northern Sinai. Entry into Israeli airspace did not result in any clashes with Israeli planes, presumably because of prior coordination..

Judging by the ”3 year trend” Dooms Day Clock reporting and the exponential progression confirmed in the new soulless quantum high frequency Artificial Intelligence era of the image caused to speak and the prophetic measure of the occult Antichrist influence upon this terminal generation and the market trend they have set up, setting the 2015 Dooms Day Clock 2 minutes down from 5 minutes 3 years ago is just the scientists confirming ZERO HOUR CAN HAPPEN ANYTIME FROM 2016 based on the trend, which means they truly put the 2015 Clock at 1 minute, or 2015 would escape a WMD event but from 2016 on BOOM!!!

The trend is not your friend. It’s the prophetic  end.


After this story broke this afternoon, conservative Twitter spent an enjoyable half-hour swapping links to some of the many statements Obozo’s made over the years insisting on regime change in Syria. How about this classic, from all the way back in 2011? Or how about this one from just three months ago? Better yet, how about this one from a mere four weeks ago? With the possible exception of “If you like your plan, you can keep your plan,” no Obozo lie has been told more often or better captures his failures as president.

Obozo wants regime change. Putz Putin doesn’t want regime change. Regime change canceled.

Skull&bones John Kerry: Oh, by the way, the U.S. is no longer asking for regime change in Syria 

On Tuesday, Skull&Bones Kerry was in Russia for talks with Vladimir Putin. As Foreign Policy notes, America’s top diplomat was “wicked psyched” that he found a Dunkin Donuts in Moscow:

The Antichrist NWO 666 Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown Controlled Humiliation Is Complete: Assad Can Stay, Skull&Bones Kerry Concedes After Meeting With Putz Putin

It has been a strange two days for US foreign policy.

Earlier today we reported that in what amounts to a significant blow to the official US position over Syria, namely the multi-year demands to replace president Assad with a western puppet ruler, Skull&Bones John Kerry on Tuesday accepted Russia’s long-standing demand that President Bashar Assad’s future be determined by his own people, as Washington and Moscow edged toward putting aside years of disagreement over how to end Syria’s civil war.”

“The United States and our partners are not seeking so-called regime change,” Skull&Bones Kerry said, adding that the focus is no longer “on our differences about what can or cannot be done immediately about Assad.”

In a testament to the fact that mainstream media is beginning to understand just how weak America’s negotiating position has become, AP offered the following rather sarcastic assessment: “Antichrist NWO 666 President Barack Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown first called on Assad to leave power in the summer of 2011, with “Assad must go” being a consistent rallying cry. Later, American officials allowed that he wouldn’t have to resign on “Day One” of a transition. Now, no one can say when Assad might step down.”

Skull&Bones Kerry also called demands by the “moderate” opposition that Assad step down before peace negotiations begin an “obvious nonstarter.”

All of the above, some may say, makes the US presence in Syria, whether through CIA covert ops, commandos, or even the Islamic State, moot: after all, if the US has folded on an Assad regime change, then there is no longer any point in continuing the proxy war, which revolves around one key issue: regime change in Syria.

But then something even more surprising happened.

Earlier today, Antichrist Islamic State militants launched an attack on a military camp in northern Iraq where Jive Turkish troops have been stationed. According to officials and press reports, seven Kurdish peshmerga fighters were killed and four Jive Turkish troops were injured in the bombardment and rushed to a hospital in Sirnak, a Jive Turkish province bordering Iraq, according to Anadolu Agency. A Kurdish Rudaw news agency report suggested that two of the trainees at the camp were killed and six wounded.

Jive Turkey’s general staff said in a statement that Katyusha projectiles fell into the camp around 3 pm local time. Jive Turkish troops returned fire following the attack according to Jive Turkish officials, who provided no further details. Additionally, according to a report by a Kurdish news website, the Slemani Times, over 70 Turkish soldiers went missing after the attack.

The attack on Jive Turkish soldiers by the Antichrist Islamic State 911 Obozo Suicide SPECTRE Squid Clown takes place two weeks after the Jive Turkish military deployed troops in northern Iraq without preclearance from Iraq in what has been seen by some as a military invasion of sovereign territory and has become a major stumbling block in relations between Ankara and Baghdad. While Jive Turkey claims the troops had been deployed at the invitation of the Iraqi government, Baghdad denies this, describing Ankara’s actions as an “incursion.”

But while the attack on the Jive Turkish soldiers by those they allegedly invaded Iraq to fight may be seen as oddly ironic, the real surprise is what followed shortly thereafter.

Moments ago, the office of the Vice President Dipshit  released a readout of a phone call Joe Bumbling Biden had with Iraq’s PM Al-Abadi. The stunning part is that in a dramatic reversion of the NATO narrative on Jive Turkey’s incursion in Iraq as justified, Dipshit Biden just called on Jive Turkey to withdraw from Iraq.<–LMAO

Here is the full readout of Vice President Biden Dipshit’s Call With Iraq’s Antichrist Muslim Prime Minister Haider Al-Abadi

The Vice President spoke with Iraqi Antichrist Muslim Prime Minister Haider Al-Abadi yesterday following his December 14 call with Antichrist Jive Turkish Prime Minister Ahmet Davutoglu. The Vice President noted the recent deployment of Jive Turkish forces into northern Iraq had occurred without the prior consent of the Iraqi government. Both leaders welcomed initial indications of the withdrawal of some Jive Turkish forces and agreed this should continue, reiterating that any foreign forces can only be present in Iraq with the coordination and permission of the Iraqi government. The Vice President reaffirmed the United States’ commitment to Iraqi sovereignty and territorial integrity and called on Jive Turkey to do the same by withdrawing any military forces from Iraqi territory that have not been authorized by the Iraqi government. The Vice President dipshit encouraged continued dialogue between Iraq and Jive Turkey to address any outstanding grievances in the spirit of mutual cooperation. Both leaders reaffirmed their continued commitment to the fight against Antichrist ISIL 911 Obozo Suicide SPECTRE Squid in Iraq.

So first the US backtracks on its core long-running demand that “Assad must go”, and now it has just turned its back on a key Antichrist NWO 666 NATO-member ally and what is allegedly the biggest provider of funding and supplies (including Ford F250 pick up trucks) to the Antichrist Islamic State, Jive Turkey.

Perhaps if only Putz Putin, Lavrov, and Skull&Bones Kerry had more staring contests such as this one

.. in which the latter invariably blinks, the world’s geopolitical conflicts would be promptly resolved.

In Dramatic Reversal, US Vice President Biden Calls On Jive Turkey To Withdraw Its Troops From Iraq 

Russian missiles will be able to breach the anti-missile defense shield being built by the United States, the head of Russia’s strategic missile forces was quoted as saying on Wednesday.

Russia says can breach US missile defense shield

“Expert estimates show that, according to its ability to analyse data and fire power, the (US) anti-missile defense system being deployed today is not able to resist a massive salvo from a unit of (Russia’s) strategic missile forces,” agencies quoted Colonel-General Sergei Karakayev as saying.

Russia and the US have agreed on a number of ‘critical’ issues, particularly with regard to Syria, US Secretary of State Skull&Bones John Kerry and Russian Foreign Minister Sergey Lavrov said following talks in Moscow.

“The US stands ready to work with Russia,” Skull&Bones Kerry told journalists after meeting with Russian President Vladimir Putz Putin and Lavrov on Tuesday. He added that the two countries’ officials had “a productive day” and the discussions had been “constructive.”

“Despite our countries’ differences, we demonstrated that when the United States and Russia pull together in the same direction, progress can be made,” Skull&Bones Kerry said.

‘We see Syria fundamentally very similarly’ – Skull&Bones Kerry after talks with Putz Putin, Lavrov 

Following the collapse in industrial production, it is no surprise that Markit’s Manufacturing PMI has plunged to 51.3, its lowest since October 2012. Under the surface it is a disaster with production volume growth the softest since October 2013, and new orders crashed to worst since September 2009.

But do not ignore manufacturing because, as Markit notes,

“Although manufacturing only accounts for around one-tenth of the economy, the Manufacturing PMI exhibits a high correlation of 77% with GDP as industrial activity has an important cyclical impact on other parts of the economy.

US Manufacturing PMI Plunges To Lowest Since 2012 As Factory Orders Collapse To 2009 Lows

With many sectors such as transport and business services dependent upon the manufacturing economy’s health, the downturn in the survey data sends a warning signal that the US upturn appears to be rapidly losing momentum as we move into 2016. However, the picture will become clearer with the publication of services PMI numbers on Friday.”

Seems like the perfect time to raise rates.

Industrial Production Crashes Most Since 2009, Weather Blamed 

For the third month in a row US Industrial Production dropped MoM, crashing 0.6% in November (against expectations of a mere 0.2% drop). This is the 9th month of 2015 with no MoM increase in industrial production and is the biggest MoM drop since March 2012. However, for the first time since Dec 2009, Industrial Production fell YoY (down 1.2%) signalling America is deep in recession. The excuse blame is “unusually warm weather” which sent the utilities index down 4.3% as demand for heating tumbled.

Ironically, capacity utilization fell to 77.0% (against exp of77.4%, down from 77.5%), its lowest since January 2014, when it was blamed on cold winter.

Recession? Transitory collapse in Industrial Production…

In 35 years there has not been a drop in IP without a recession. In all US history only ’34, ’52, and ’56 saw such declines with no recession.

So if the wealther was to blame for November, what was to blame for January, February, March, April, May, June, September, and October?

Or could it be unequivocallyu good low oil prices? Oil & Gas Well Drilling Output is the lowest this century…

Dollar & Crude Dumped, Bonds Pumped As Yellen Jawboning Saves Stocks 

Stocks were not impressed at all out of the gate but once Janet started talking, the algos lifted them to the highs (and of course gold was whacked). Crude oil was dumped, along with “sell the news” USDollar longs. Bonds were well bid at the long-end….

Big Banks Caught Using Credit Default Swaps To Destroy Nations – Jeff Nielson

December 9, 2015

At the beginning of 2010, readers were presented with what was (at the time) merely a theory. The Big Bank crime syndicate was engaged in the serial manipulation of credit default swaps, in order to (among other things) destroy the economies of entire nations. It’s one of the reasons these “financial weapons of mass destruction” ( Warren Buffett ) were illegal in the U.S. for roughly 100 years, banned under anti-gambling statutes.

The theory was supported by a combination of compelling empirical evidence and logical deduction (i.e. “circumstantial evidence”) – roughly the same evidentiary basis by which we obtain most of our criminal convictions in our courts of law. The difference here is that with our governments having abandoned the Rule of Law, there was no one ready or willing to adjudicate over such evidence.

Before moving to the new evidence of an open conspiracy by the Big Banks to manipulate this market, it is necessary to review this older evidence. The chronology begins after the Crash of ’08, and takes the form of a comparison of two nations and their economies: Greece and the U.S.

Both nations were clearly hopelessly insolvent. Both nations’ insolvency came largely through absurd levels of military over-spending. The main difference is that one nation – the U.S. – was even more insolvent than the other. It simply pretended (and still pretends) to be “solvent” through enormous and absurdly transparent accounting fraud, which would be instantly prosecuted if attempted by any U.S. corporation (other than a Big Bank ).

Yet despite these two similar economies, there was nothing similar about their interest rates. The benchmark U.S. interest rate was permanently frozen at an ultra-fraudulent 0%. This meant paying no interest on loans to the U.S. government, despite the enormous risk of lending money to history’s most-indebted nation.

Similarly, the (supposed) “market rate” on various maturities of U.S. bonds remained at near-zero, despite the gargantuan risk. Such a disconnect between risk and interest rates has never before been seen in our debt markets. Then there was Greece’s interest rates , an even larger, logical disconnect.

Two nations with very similar economies, and very similar problems: bankruptcy. Yet the interest rates on their debt were not only different, but radically opposite. However, this impossible dichotomy is not the only unequivocal evidence of interest rate fraud. We also have the incredibly steep rise, in Greek interest rates, during a time when there was virtually no change in the government’s fiscal policy. All that changed was the size of the interest payments on Greece’s debts as a result of this interest rate manipulation.

Readers were presented with a detailed explanation of the tag-team of fraud which made possible such extreme manipulation of interest rates. It begins with manipulation of the credit default swap “market,” a crooked book-making operation where the “bookies” taking the bets not only place most of the bets themselves, they also adjudicate on any disputes on the settlement of bets. More pure fraud .

First the Big Banks manipulate credit default swap prices higher in the debt market of the intended victim. Then the tag-team operation moves to the corporate media, another tentacle of the crime syndicate which readers know as the One Bank . The media mouthpieces gasp-and-moan in mock anguish about the supposed “increased risk” in the debt market of the victim, while nothing has changed except the manipulative betting of the Big Bank crime syndicate.

The last tag-team partner in this chain of economic terrorism is the so-called “credit rating agencies.” These agencies claim to assess the manipulative betting in the CDS market, and the Chicken Little hysteria from the mainstream media, and then downgrade the debt of the victim’s market on the basis of a supposed “change in risk” – when, still, nothing has changed in the victim’s economy.

The downgrade on the victim’s debt results in automatic, upward revisions in the interest which the victim must pay on all of its debt. With essentially no regulation of the crime-saturated “derivatives market,” the crime syndicate could (and did) repeat this cycle of manipulation as often as was necessary to officially bankrupt Greece.

Via the economic terrorism of credit default swap manipulation alone, the Wall Street terrorists were able to drive interest payments on Greece’s debt higher by roughly a factor of 600%. Meanwhile, U.S. interest rates were manipulated in the opposite direction. What would have happened if those on Wall Street manipulated U.S. interest rates to 30% (the same level as Greece), resulting in U.S. interest payments rising by more than 1,000%?

Just to pay the interest on its debt (to the same, Big Bank crime syndicate), the U.S. government would have to begin by shutting down the entire government, and disbanding the U.S. military, in order to bring spending down to zero. Then it would have to double everyone’s taxes in order to come up with the full payments to the parasitic bankers. And then, in a few weeks, the U.S. economy would totally collapse – just as Greece’s economy did in 2011.

This is no longer a “conspiracy theory,” however, it is now a(nother) conspiracy fact, as shown by this headline .

Banks Said to Face SEC Probe Into Possible Credit Default Swap Collusion

First some translation. Whenever the (pretend) justice officials, (pretend) regulators, and media propaganda machine announce a “probe” into more, Big Bank serial crime, what it actually means is that another Big Bank mega-conspiracy can no longer be covered up.

First we see the (reluctant) “probe.” Then we see the even more-reluctant token prosecution. Then we see the Big Banks handed their token “punishment”: microscopic fines (in relation to the size of the crimes). And then the same Big Banks repeat the same crimes, and are caught again and again .

We saw it when the Big Banks were caught and convicted of conspiring to manipulate the $500 trillion, LIBOR debt market. We saw it when the Big Banks were caught and convicted of conspiring to launder trillions for the global drug cartels and “terrorist” entities, despite the supposed “wars” the U.S. claims to be fighting against drugs and terrorism. We saw it when the Big Banks were caught and convicted of conspiring to serially manipulate all of the world’s currencies.

Of course neither the corporate media, nor the pretend-regulators, nor the pretend-justice officials ever use the word “conspiracy.” They instead use the word “collusion,” even though the two terms are synonymous. Why? Because the corporate media preaches to us again and again that there are no conspiracies.

We have more unequivocal evidence showing that this “probe” is a cover-up, and not a bona fide investigation. It starts with another headline .

Big Banks must face U.S. [credit default] swaps price-fixing lawsuit

This headline is from a September 2014 report that not only were litigants pursuing a major lawsuit against the Big Banks for conspiring to manipulate the credit default swaps market, but that a U.S. judge had ruled that their evidence was credible enough to proceed to trial.

It should have taken the pretend-regulators and pretend-justice officials about 15 minutes after this ruling to announce their own investigation, announcing that they would begin to investigate a market which they claim to be continually policing. Instead, it took 15 months for this “probe” to begin. That spells cover-up, which is in itself another conspiracy.

We know this is another Big Bank criminal conspiracy to cover up the original conspiracy, based upon the obvious attempt to deceive by the corporate media, as it attempts to downplay the latest, now-exposed, Big Bank conspiracy [from the previous, original headline ]:

In the LIBOR scandal, regulators accused banks of making submissions on borrowing rates that benefited their trading positions. [emphasis mine]

Wrong! The Big Banks were convicted of conspiring to manipulate the LIBOR rate. Even more pathetically, for the first year of the LIBOR pretend-investigation, the pretend-justice officials tried to pass off the absurdity that only one Big Bank (Barclays) had conspired to rig the LIBOR rate.

This lie was pedaled, even though the LIBOR rate is set (in secret) collectively by roughly a dozen Big Banks. It would be akin to accusing a single voter of rigging an election. It was only when the pretend-justice officials finally accepted that they couldn’t sell a “one-bank conspiracy” that a few more Big Banks were added to this token prosecution.

In our system, the general principle is “guilty until proven innocent.” However, the logic behind this has ceased to apply to the Big Bank crime syndicate. Where there is smoke (i.e. some new “probe”), not only do we always see a subsequent fire, we get glimpses, even through the cover-up, of a massive wildfire.

Then we have the confessions of the criminals. A full one-quarter of Wall Street’s and London’s senior banking executives freely admit that crime is a way of life in their industry — organized crime. Even in our justice system (or what remains of it), once armed with confessions, the principle of “innocent until proven guilty” no longer applies – the guilt is conceded.

The Big Banks manipulate credit default swaps to perpetrate economic terrorism against other nations in the world, where they literally destroy the economies of those victim-nations. It used to be a theory, but now the proof is finally emerging. You heard it here first.

Here, as in other roosting places of the superrich, the recent influx of foreign money has gone hand in hand with the rising use of shell companies — generally limited liability companies. Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too.

– From the New York Times article: A Mansion, a Shell Company and Resentment in Bel Air

While New York City and London are already well known as top destinations for shady, foreign-money laundering oligarchs who often attain untold riches by thieving from their own people, the Los Angeles area has likewise morphed into a criminal real estate hub.

Monday’s article in the New York Times, titled, A Mansion, a Shell Company and Resentment in Bel Air, sums up so much of what is wrong about the U.S. economy and society as we reflect on how far we’ve fallen in 2015. A culture in which not only are the rich and powerful above the law, but where foreign criminals also can do whatever the heck they want and get away with it as long as they have billions to throw around. The fact that no one seems to be doing anything about any of it tells you all you need to know.

What follows are a few excerpts, but you should really read the entire article. From the New York Times:

Yet for all that, over four years of violation notices, inspections and hearings, efforts to hold someone accountable for the mess at 901 Strada Vecchia have repeatedly hit a legal wall. It is, as a judge said during an October session where once again nothing got done, “an extremely complicated case.”

That is because “themodernhouseofhadid” belongs not to Mr. Hadid but to an entity that keeps the actual owner at a legal remove — a shell company named 901 Strada L.L.C.

Fueled largely by the vast streams of wealth crossing the globe as never before, a new generation of hyper-luxury homes with stratospheric price tags is colonizing the most gilded hillsides and canyons of Los Angeles. In some areas, every third or fourth home has been torn down, leaving gashes of dirt and debris where new mansions will rise.

And more often than not, the people behind the purchases are hidden by shell companies.

Here, as in other roosting places of the superrich, the recent influx of foreign money has gone hand in hand with the rising use of shell companies — generally limited liability companies. Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too.

Today in Los Angeles, as at 901 Strada Vecchia, L.L.C.s have provided insulation — some would say impunity — amid a gathering anti-development backlash.

Head up North Alpine Drive in Beverly Hills, for example, and on the right is a $14.7 million home owned by a shell company tied to Kola Aluko, a Nigerian businessman who is a figure in an investigation of that country’s former oil minister.

A block away is one of several local properties that have been owned by shell companies tied to a son of Suharto, the corrupt and brutal former president of Indonesia.

And back down the hill is Le Palais, a faux chateau — with a swan pond and a Jive Turkish bath with hand-carved Egyptian limestone columns — that a shell company tied to Mr. Hadid sold to a shell company tied to Lola Karimova-Tillyaeva, a daughter of the president of Uzbekistan. The Karimov family faces corruption investigations in several countries, according to two people who have worked in law enforcement and have knowledge of the inquiries.

The property at 901 Strada Vecchia is the crystallization of all this — in its grandiosity, its 60 pages of violations and other notices, and the ire it has provoked.

Silver-maned at 67, Mr. Hadid, like many of his clients, is an immigrant. Born in Israel, he moved to Virginia as a teenager with his Palestinian family and spent his early business career in the Washington, D.C., area, developing office buildings and Ritz-Carlton hotels. Central to his success even then was his ability to woo foreign financiers — French and German backers, and in particular the SAAR Foundation, a group of Antichrist Saudi investors.

The Antichrist NWO 666 SPECTRE Squid Foreign Criminals Using Los Angeles Real Estate to Launder Money and the Developers Who Help Them 

Among his big-ticket sales was a Beverly Hills house, with a >>>glowing pyramid<<< in a >>>reflecting pool<<<, that was acquired in 2010 by a shell company tied to the stepson of the Antichrist prime minister of Malaysia. (The prime minister is now a target of corruption investigations at home and abroad.)

No. 73 is a home owned by TBN Holdings Inc., which traces to a Antichrist Saudi prince, Turki bin Nasser. As a high-ranking military official during the 1980s and ’90s, Antichrist Prince Turki was involved in arms deals with the aerospace company BAE that led to allegations of bribery and large fines in Britain and the United States. According to reports by The Guardian, the BBC and “Frontline,” Antichrist Prince Turki was a bribe recipient, but, as had long been their practice, American and British authorities prosecuted only the company.

Antichrist Prince Turki did not respond to requests for comment.

At No. 58 is a home bought in 2004 by a shell company tied to another Russian politician, a former senator named Alexander Sabadash. Last spring, Mr. Sabadash was sentenced in Russia to six years in prison for attempted embezzlement of public funds, according to Russian news reports. A man who answered at the phone number listed for the shell company said the Sabadashes might be renting the house.

Finally, at No. 27, is a home owned by a shell company that has ties to the family of Bambang Trihatmodjo, long a contentious figure in Indonesia because his businesses amassed great wealth during the reign of his father, Mr. Suharto. Though Mr. Suharto died in 2008, his family’s fortune remains a focus of questions and legal action. Last summer, the Indonesian Supreme Court ordered the Suharto family to return $324 million that was embezzled from a foundation established with public money, according to news reports.

The money was to have paid for education for the poor.

In July 2014, the city said it intended to revoke the project’s work permits. That week, Mr. Hadid posted on Instagram, “The construction must go on.” It did, even after the permits were pulled. Neighbors documented workers on the site that Thanksgiving.

Mr. Hadid is not the only developer flirting with nine-figure price tags. His main competitor is Nile Niami, a former film producer building a Bel Air home he has said he hopes to sell for $500 million.

One of Mr. Niami’s past projects was a boxy, modern house at 755 Sarbonne Road. In April 2012, a shell company tied to Mr. Niami sold it to a shell company traced to Kola Aluko, the Nigerian businessman.

What followed was a tangle of events spanning two continents, involving oil and water, a host of shell companies and lessons in the difficulty of tracing responsibility.

Mr. Aluko, it turned out, was on a buying spree. In addition to purchasing the Sarbonne Road house for $24 million, shell companies tied to him soon bought another Beverly Hills house for $14.7 million and two others in Santa Barbara for $33 million.

Letting these characters and their billions enter the country is a far bigger threat than Mexican immigrants, but as is typically the case, people prefer to punch downward.

Lt. Col. Robert Macginnis, Tom Horn
Jim Bakker Show 2015 | Show# 2893 | Aired on December 8, 2015

It’s 2:00:01 pm and the Fed has just announced it will hike rates by 25 bps while using very dovish language to convey that just like “tapering was not tightening” in 2013, so “tightening isn’t really tightening”, and unleashing a massive buying order.

So far so good. But the real question is what does this mean for post-kneejerk market dynamics, and the one most important variable of all: liquidity.

The all too crucial, and overdue, answer to this question will be delivered when the Fed releases its “implementation note” concurrently with the FOMC statement which should explain all the nuances of just how the Fed will adjust the IOER-Reverse Repo piping that will be crucial to pull of the rate hike in practice, something which has been stumping

Two weeks ago, we cited repo-market expert E.D. Skyrm who calculated that moving general collateral higher by 25bps would require the Fed draining up to $800 billion in liquidity: “In 2013 on my website, I calculated that QE2 moved Repo rates, on average, 2.7 basis points for every $100B in QE. So, one very rough estimate moved GC 8 basis points and the other 2.7 basis points per hundred billion. In order to move GC 25 basis points higher, in a very rough estimate, the Fed needs to drain between $310B and $800B in liquidity.”

That may be conservative.

According to Citigroup’s latest estimate, the liquidity drain could be substantially greater. Here is the take of Jabaz Mathai

There will be a separate document from the NY Fed with details around the operational aspects of the liftoff. Of primary interest will be the size of the overnight reverse repo facility that the Fed will put in place to pull short rates higher. We don’t think it will be unlimited, but a size large enough that will keep short rates from falling below the 25bp floor – and the size could be as high as $1tn.
Putting this liquidity drain in context, the entire QE2 injected “only” $600 billion in liquidity in the span of many months, suggesting that as of tomorrow, the Fed may drain as much as 166% of its entire second quantitative easing operation overnight.

Whether that liquidity is inert and can be easily released by banks, and more importantly, non-banks without resulting in any additional risk tremors is the first $640 billion question that the Fed is facing. The second, third and fourth? Assuming a linear relationship and another 3 rate hikes until the end of 2014, this means that by the time short term rates hit 1%, the Fed may have soaked up as much $4 trillion in liquidity. Here one thing is certain: a $1 trillion drain may not have a material impact when starting from a $2.6 trillion excess reserve base. $4 trillion, however, will leave a mark (the Fed’s entire balance sheet is $4.5 trillion) especially once the market starts to discount just how the rate hike plumbing takes place.

Fed May Have To Drain As Much As $1 Trillion In Liquidity To Push Rates 25 bps Higher

But… “priced in”? “Non-Event”?

2Y yields are within a smidge of 1.00% for the first time since May 2010…

As The Dow dumps off opening highs into the red for the day…

But what do Treasuries know that stocks don’t…

Dow Drops 170 Points From Open As 2Y Yield Surges To Highest Since May 2010

In her first post-rate-hike press conference, Janet Yellen is about to go to extreme lengths to explain just how dovishly bullish raising interest rates is, despite leaving the Fed Funds forecast unchanged since September (i.,e. not dovish). We look forward to her explaining why she is raising rates now – as opposed to September – as economic data has nosedived and the market has done a significant job on contracting credit already. We also look forward to her explaining how, if rate hikes on the path to normalization are so awesome, why is the willingness to do it so low?

Well that’s odd…
Macro “data” got worse… Market “data” got better…

Whore Of Babylon Janet Yellen Explains Why Rate-Hikes Are Bullish – Live Feed

While The Fed is confidently rising rates, the market is signalling its belief that this is a policy error. Not only are longer-dated bond yields lower but short-term money-market expectations for January now see a higher chance of a rate-cut, than a rate-hike.

Market Confidence In The Fed’s Policy Error (Summed Up In 1 Chart)<–LMAO

There was much expectation that the Fed’s announcement would be a Dovish hike based on a reduction in the 2016 median dot, however the Fed did not do that, and instead kept the median 2016 fed funds rate at 1.4% for year end, suggesting 4 rate hikes during 2016 and that the market is underestimating the pace of rate increases.

Where there was some dovishness was in the 2017 year end median FF, which was reduced from 2.6% to 2.4%. This can be seen in the compared dot plots.

Additionally, what is perhaps even more surprising is that while the Fed did boost its 2016 year end GDP forecast, it cut the median core PCE forecast from 1.7% to 1.6%, suggesting that the deflationary forces continue to prevail aside from the “transitory” impact of oil.

Unchanged 2016 Fed Funds “Dot” Signals Fed Expects 4 Rate Hikes In 2016

Perhaps even more important than the actual rate hike announcement, the one statement the market was particularly focused on was the Fed’s “implementation note“, which lays out the Fed’s thought process on how it will actually raise rates in order to maintain the Fed Funds in the 0.25%-0.50% range. What it reveals is that in addition to removing the daily limit on aggregate borrowings through its overnight reverse repurchase facility, previously set at $300 billion (recall that according to Citi, the Fed may need to drain up to $1 trillion in excess liquidity to effect the 25 bps hike), it will have a per counterparty limit of $30 billion per day, which may or may not be enough.

Separately, the Simon Potter’s desk at the NY Fed announced “that the Desk anticipates that around $2 trillion of Treasury securities will be available for ON RRP operations to fulfill the FOMC’s domestic policy directive.”

What is missing from the analysis is how the Fed will approach the fact that securities pledged to the Fed remain outside of the traditional repo pathway, and thus the liquidity shortage among the treasury market is likely to continue if not worsen.

Most of these are in line with expectations. Now it remains to be seen if these theoretically necessary measures will also be practically sufficient.

Fed Reveals Rate Hike “Plumbing” Details: Removes Cap On Reverse Repos, Limits Each Counterparty To $30 Billion

An intense thunderstorm accompanied with heavy rainfall, damaging winds and large hail ravaged Sydney, Australia on December 16, 2015. The freak storm triggered flooding across the affected areas while strong winds and a tornado wreaked havoc, causing severe infrastructural damage and widespread evacuations while numerous people have been left trapped in their homes.

A tornado accompanied by large, golf-sized hail stones, violent winds and floods battered grounds of southern beaches in a Sydney neighborhood that was later declared a disaster zone.

Devastating freak storm wreaks havoc across Sydney, Australia 

More than 10 000 homes and about 7 000 businesses have been cutoff the power supply, and at least 160 calls out have been received by the State Emergency Service (SES). Roofs have been torn off the houses, and a palm tree has been reported to catch fire after being struck by the lightning. Part of the roof at the Shoppers at Westfield mall collapsed when damaging winds hit the area. Cars have been flipped and damaged by the winds and flooding in the area.

A large evacuation has taken place at the desalination plant in Kurnell, after it suffered devastating damage from the storm. Numerous flights have been delayed at Sydney’s airports.

NOTE: If you can’t see what is coming now, especially after the effort made on this blog, lol, for ”free”, and you still need help with the intelligence analysis, because you are a dimwit antichrist dipshit still, here’s your primer.

John 14 

and I will ask the Father, and he will give you another comforting Counselor like me, the Spirit of Truth, to be with you forever. 17 The world cannot receive him, because it neither sees nor knows him.