In case you weren’t aware, the Pentagon is set to roll out a 50th anniversary commemoration of the Vietnam War. As a part of this event, the Pentagon intends to rewrite history by whitewashing this period of civil unrest and government shame from American history. The propaganda is so blatant that it has resulted in many of the era’s most well known protestors and activists to come together in order to stop it…
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Expecting the state to truly reform the nation’s engines of financialization is like asking the cocaine addict married to the wealthy dealer to divorce the dealer.
Most observers think they know why the government (i.e. the state) has failed to truly reform the financial system: corrupt politicos on the receiving end of the Too Big to Fail (TBTF) banks and financiers’ millions of dollars in lobbying and campaign contributions do the banks’ bidding.
While the reduction of democracy to an auction in which the highest bidder controls the state is certainly one systemic reason for this abject failure, there is an even greater, more deeply systemic reason why the state cannot reform the rotten core of financialization.
Something nasty is going on behind the scenes in the financial system that is not yet apparent.
Treasury futures opened in the early evening and the 10-yr traded down to 2.25%.
Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week.
The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.
Is another TBTF mega bank on the brink of insolvency??
Click here for more from PM Fund Manager Dave Kranzler who warns another banking crisis may be imminent:
Stacy Summary: More turmoil. Has Jim Cramer started yelling at Janet Yellen that “it’s no time to be an academic” blah blah blah.
Treasuries Gain as Oil Drops Below $80 While Stocks Slide
Treasuries and the dollar climbed, oil fell below $80 a barrel and U.S. futures plunged more than 1 percent in one hour as concern deepened that global growth is slowing. European stocks slid an eighth day in the longest rout since 2003 and bonds from Greece to Spain tumbled.
To put the European disaster into context:
Paris’s ’Squalor Pit’ Gare du Nord Becomes French Decline Symbol
On a recent afternoon at Paris’s Gare du Nord train station, a man leans against a lamppost with an empty wine bottle at his feet and spouts a jet of pink vomit over a parking bay for public bicycles.
Locals hurry by, avoiding looking at the man, while visitors stare in fascinated horror.
Do you have a copy of The Rules of the Global Game by Ken Dam aka Mr. SDR? It has been out of print for many years. You can still buy a used hardcover copy, including shipping, for well under $10 on Amazon.
The Fed is leveraged more than Lehman before its bankruptcy. What will be the next move to inflate the market if this goes south?
The IMF’s special drawing rights. It may not work, but it will be the next Hail Mary play when the time comes.
Depression in the USA
Jim Rickards was in Chicago last week talking about his books Currency Wars and The Death of Money. He reminded the audience that the United States is in a depression as defined by years of substandard growth. Yes, we have anemic growth, but it’s well below our capabilities. There are no policy changes in sight to change that.
If that’s true, then where are the soup lines? Our soup lines are more efficient this time around. The 53 million Americans on food stamps now swipe a card. Out of sight, out of mind.
See also: “Hidden Bank Risks Drive Investors to Productive Assets, U.S. Treasuries, and Gold”,
Coming Soon: Unveiled Threat: A Personal Experience of Fundamentalist Islam and the Roots of Terrorism, Janet M. Tavakoli, Lyons McNamara LLC, December 2014.
There is huge volatility in stock markets and European bonds have seen sharp selling again, with Greek 10-year interest rates surging to nearly 9% and Irish bonds rising over 20 basis points to over 1.9%. Spanish 10-year government bond yields rose 26 basis points to 2.37 percent, while equivalent Italian yields were 28 bps up at 2.68 percent. Portuguese yields rose 27 bps to 3.57 percent.
Irish 10 Year Bonds (Thomson Reuters)
As we have warned for many months now, the Eurozone and indeed global financial crisis is far from over. We had a brief interlude after the starter but the main course is soon to commence.
The Bitcoin Foundation held an AMA (Ask Me Anything) session with Jim Harper on Reddit yesterday in order to maximize transparency within the organization. Previously, the Bitcoin community criticized….
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Theories abound why this is suddenly happening, after years of deceptive calm.
Read….. Toxic Mix Blows up: Oil Price Collapse & Junk Bond Insanity
For quite some time, I have pointed out that many oligarchs will ultimately rue the day they made these investments in ghost skyscrapers. It always seemed obvious to me that once the billionaires had their fill, they would become a captive milk cow for local governments. When you buy a $20 million dollar home in NYC, and the market starts to cool even a little, there is no getting out. You are completely stuck and then it will be time to come collect. No one will feel sorry for you. No one will care. If you are an oligarch and you didn’t see this coming, I don’t know what to tell you.
The pied-à-terre tax is now on the agenda in New York City…
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The current Ebola outbreak, unlike others throughout history, is lasting a very long time; with cases now being reported on a variety of continents well outside of its equatorial African origin. In this article, we examine the science behind the disease, what risks we need to worry about, and which we don’t.
What Ebola reminds us of is that when a true pandemic arrives it will travel much faster than those in the past (thanks to air travel being an order of magnitude faster than dawning recognition) and that our complex, highly leveraged, just-in-time global economy is utterly unprepared for even a minor glitch in the flow of goods let alone the virtual lockdown that a true pandemic would require.
A small amount of preparing can make you much less vulnerable should (when?) that comes to pass.
Read the full article here