MAY 13 SIT EC y POL
ZERO HEDGE
What
Peter Schiff Said To Ben Bernanke. Submitted by Tyler
Durden on 05/13/2015, "You said you weren’t monetizing the debt when
you talked to Congress. You said the Fed was going to sell the bonds, but none
of them have been sold. They’ve all been rolled over. So how are you claiming
victory when you haven’t exited? You haven’t raised rates, you haven’t shrunk
the balance sheet. You were wrong in the past. You didn’t see the financial
crisis coming. You told us there was no housing bubble. You said subprime was
contained. So you were certainly wrong then. So how do you know you’re not
wrong now? Is there anything that might change your opinion and get you to
rethink and maybe admit that your outlook is wrong?"
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A
Generational Storm Is Coming. by Bill
Bonner via Bonner & Partners, Submitted by Tyler
Durden on 05/13/2015. You are heirs to claptrap, nonsense, bogus theories,
and trillions of dollars in debt. The systems, programs, and institutions your
parents set up are mostly worthless scams. Worse, they produce outcomes
contrary to their stated goals.
All of those assertions take more time to explain and prove
than we have time for now. But here’s a little example that you will
appreciate…
[Here only subtitles: go to
http://www.zerohedge.com/news/2015-05-13/generational-storm-coming
for the full
article. This is a wishful thinking though it contains some real truth ]
25 Years of Poverty
A Suicidal System of Credit
Time to Wipe the Slate Clean
Either you break free from the jackass things your
parents have done to you … or you deserve what you get.
Congratulations, chumps.
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"We
The People" Need To Circle The Wagons: The Government Is On The Warpath.
Submitted by Tyler Durden on 05/13/2015. Have you ever
wondered why the Constitution begins with those three words “we the people”? It
was intended to be a powerful reminder that everything flows from the
citizenry. We the people are the center of the government and the source of
its power. That “we” is crucial because it reminds us that there is power
and safety in numbers, provided we stand united. We can accomplish nothing
alone. Unfortunately, we have been ousted from that protected circle, by the
courts, the politicians, and the corporations - replacing us with yes-men,
shills who dance to the tune of an elite ruling class. To put it a little
more bluntly, stop thinking like mindless government robots and start acting
like a powerhouse of citizens vested with the power to say “enough is enough.”
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45%
Of US Voters Are Worried The Government Will Use Military Training Exercises
For Power Grab. Submitted by Tyler
Durden on 05/13/2015. Mainstream media reporting on the controversy over
the Jade Helm 15 military exercises, set to take place over eight weeks across
several U.S. states, was primarily about characterizing and demonizing Texans
concerned about the exercises as backwater, paranoid rednecks with wild
fantasies about an imminent government takeover. While exercises like these
will always cause the imagination of some to run amok, the key point here is
this: concerns that U.S. military exercises will be used to exert
more power over states is not a fringe view.
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America's
Class Segregation Problem In 4 Charts. Submitted by Tyler Durden on 05/13/2015 Based on Harvard Political scientist Robert Putnam to whom “a
family’s socioeconomic status has become more important than their educational
aptitude in predicting whether an eighth-grader would graduate from college according
to WSJ.
“One surreal night
of mass chaos, indiscriminate pillaging, violent street clashes, and widespread
arson notwithstanding, race relations in America have generally improved over
the last five or so decades. Even as the nation's focus has shifted back to the
issue of racial discrimination on the heels of several high profile incidents
of apparent police misconduct, America has at least managed to overcome
overt racial segregation and steer generally (but not always) clear of the
types of egregious civil rights violations that still existed a century after
the Emancipation Proclamation.
“However, one type of segregation that has certainly not
disappeared but has instead only grown is class-based segregation. The following four charts demonstrate how
the interplay between income and education has served to exacerbate the class
divide among America's youth, curtailing opportunities for the poor in the process.
SEE more graphs: The Parent Gap;
Soft skills, Predicting College Graduation..
“Don't worry
America, we're sure the "wealth effect" from QE will start to trickle
down to the lower tax brackets any day now and when that day comes all your
problems will be solved at which point you can write to PIMCO and explain how
great of a man their newest
adviser is.”
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The
History Of Treasury Market Liquidity (And Lack Thereof) In One Chart. Submitted by Tyler
Durden on 05/13/2015
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ETF
Issuers Quietly Prepare For "Market Meltdown" With Billions In
Emergency Liquidity. Submitted
by Tyler Durden on 05/13/2015. Looking for signs
that the country's largest asset management firms believe a market meltdown may
be on the horizon? Look no further than Vanguard and several other large ETF
providers who have set up billions in credit lines with banks to guard against
the possibility that a wave of redemptions could wreak havoc on illiquid credit
markets.
[[ According to INVESTOPEDIA
www.investopedia.com/terms/e/etf.asp
DEFINITION of 'Exchange-Traded Fund (ETF)' An ETF, or exchange traded fund,
is a marketable security that tracks an index, a commodity, bonds, or a basket
of assets like an index fund. Unlike mutual funds, an ETF
trades like a common stock on a stock exchange.
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www.investopedia.com/.../exchange-traded-products-etp.asp
Exchange traded products
include exchange traded funds (ETFs), exchange traded vehicles
(ETVs), exchange traded notes (ETNs) and certificates.
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www.investopedia.com/terms/e/etf-futures-and-options.asp
A variety of
derivative products based on exchange-traded funds. ETF
futures are contracts that represent an agreement to buy (or sell) the
underlying ETF ...
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economictimes.indiatimes.com
ETF Definition: ETFs or exchange traded funds
are similar to index mutual funds. However, they trade just like stocks.]]
“Essentially, ETF providers are
worried that in a pinch (i.e. when ETF sellers outnumber ETF buyers), they will
be forced to liquidate assets into structurally thin markets at fire sale
prices in order to meet redemptions, triggering a collapse in the underlying
securities (like HY bonds)”.
In case it isn’t
clear enough from the above that ZIRP is in large part responsible for this,
consider the following:
"These funds offer daily
or even intraday liquidity to investors while holding assets that are hard to
sell immediately, thus making the funds vulnerable to liquidity risk," U.S. Federal Reserve Vice Chair Stanley
Fischer said in a speech in March in Germany, pointing directly to ETFs and
saying they have mushroomed in size while tracking indexes of "relatively
illiquid" assets.
In the final analysis, these liquidity lines are
essentially distressed loans when drawn down, and the effect is to create yet
another delay-and-pray ponzi scheme whereby liquidation is temporarily
forestalled by borrowed money.
Recall that Howard
Marks recently
warned investors against ignoring the fact that an ETF can't be more liquid
than the underlying assets and the underlying assets can be highly illiquid. So
while Marks may have wondered rhetorically what could happen in a worst case
scenario, the market is itself now quietly taking steps to avoid that moment as
long as possible
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It's Only Fair To Tax The Wealthy, Obama Says: "They Are Society's Lottery Winners". Submitted by Tyler Durden on 05/13/2015. "when I say that, I’m not saying that because I dislike hedge fund managers, or I think they are evil, I’m saying that you’re paying a lower [tax] rate than a lot of folks who are making $300,000 a year... There’s a fairness issue involved here. And by the way, if we were able to close that loophole, I could now invest in early childhood education to make a difference. That’s where the rubber hits the road. That’s … where the question of compassion and ‘I’m my brother’s keeper’ comes into play. And if we can’t ask from society’s lottery winners to just make that modest investment, then really this conversation is for show."
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Forget
Mattresses, Greeks Are Stashing Their Cash In Cars. Submitted by Tyler
Durden on 05/13/2015. As Greek empty their bank accounts at a record pace,
waiting for the capital-controlling, bank-holiday-based 'other shoe' to drop on
Grexit, devaluation, and drachmatization; they are not stashing their cash in
the proverbial mattress. Instead, as The
Telegraph reports, there is a slightly surprising sign that Greece is in
the classic throes of a bank run (as
we saw in Russia last year): car sales jumped by 47% in April.
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The
US Is In Recession According To These 7 Charts. Submitted by Tyler
Durden on 05/13/2015. The evidence continues to mount...
So here are seven charts that
scream "recession" is here...
1- Retail Sales are weak - extremely weak. Retail
Sales Ex-Auto-gas have not dropped this much YoY outside of a recession...
2- And if Retail Sales are weak, then Wholesalers are
seeing sales plunge at a pace not seen outside of recession...
3- Which means Factory New Orders are collapsing at a
pace only seen in recession...
4- Which means Factory Orders are collapsing at a pace
only seen in recession...
5- And Durable Goods New Orders are negative YoY once
again - strongly indicative of a recessionary environment...
6- Whole sale Inventories/Sales. Which
is not going to improve anytime soon since inventories have not been this
high relative to sales outside of a recession. In fact, the last time durable goods orders
fell this much, The Fed launched QE3 - indicating clearly why they
desperately want to raise rates imminently... in order to have some
non-ZIRP/NIRP ammo when the next recession hits.
- And just in
case you figured that if domestic prosperity won't goose the economy, Chinese
and Japanese stimulus means the rest of the world will save us... nope!! Export
growth is now negative... as seen in the last 2 recessions.
- And
deflationary pressures (Import Prices ex-fuel) are washing upon America's
shores at a pace not seen outside of a recession...
- And just in case
you figured that if domestic prosperity won't goose the economy, Chinese and
Japanese stimulus means the rest of the world will save us... nope!!
Export growth is now negative... as seen in the last 2 recessions.
- And deflationary pressures (Import Prices ex-fuel) are
washing upon America's shores at a pace not seen outside of a recession...
7- Employed Population %. But apart from that, given that US equities are at record highs,
everything must be great in the US economy... [irony. Fact :in 2014 a little
bet up –almost similar- than in 2005-9]
Wait a minute.
[So, if this
is not recession how we can called .. soft recession? Or soft transitional to an eminent
crash? See below: Import
Prices Plunge For 9th Month In A Row, Biggest Drop Ex-Fuel Since 2009]
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China
Lashes Out At US: "Refrain From Provocative Action". Submitted by Tyler
Durden on 05/13/2015. While apparently the US does not have its hands full
already with orchestrating (and profiting from) two proxy regional wars, one in
Ukraine and one in the Middle East, and feels compelled (by shareholders of US
"defense" companies) to prove to the world it has long since lost its
globocop status when China roundly ignores American threats, China wasted no
time to do just that and overnight Beijing strongly condemned a proposed U.S.
military plan to send aircraft and Navy ships near disputed South China Sea
islands to contest Chinese territorial claims over the area. It didn't end
there and China escalated verbally to a near breaking point when Beijing urged
“relevant countries to refrain from taking risky and provocative action.”
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Gold
& Silver Surge On Heavy Volume As Dollar Dives After Retail Sales Slump. Submitted by Tyler
Durden on 05/13/2015. Is bad news good? For now, stocks levitate in
their ubiquitous run-stop opening ramp manner, bonds are leaking higher in
yield but precious metals and currencies are extremely active...
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"QE
Doesn't Work... But We Can't Wait For More". Submitted by Tyler Durden on 05/13/2015. It is perhaps
an emblematic description for our current bubble age; QE doesn’t work but “we”
can’t wait for more. Maybe that is just the logical evolution of
monetary magic, since QE was brought on with almost mythical properties that
were going to cure a lot of financial and economic ills (Bernanke the former).
Now resignation (Bernanke
the latter) has left it with only the hope that it can just save us from
the worst downside, even without any real expectation of a true upside in the
economy. In other words, markets hope for the QE zombie, where the economy
is kept from death by it, with full recognition now that it will never regain
full life either.
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Import
Prices Plunge For 9th Month In A Row, Biggest Drop Ex-Fuel Since 2009. Submitted by Tyler
Durden on 05/13/2015. US Import Prices fell 10.7% in April (missing
expectations of a 9.7% decline) making this the longest streak of YoY declines
outside of a recession in history. In fact, YoY Import Prices have only
risen 5 times in the last 36 months. This is also the 10th monthly decline
in import prices (-0.3% vs +0.3% expectations) with with Food and Beverage
prices dropping the most and non-fuel-related import costs dropping the most
since 2009 and imports ex-fuel and food fell 2.2% YoY in April. The
biggest price deflationary pressures appear to come from ASEAN with overall
manufactured goods sliding 0.4% against non-manufactured rising 0.5% in April.
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US
Retail Sales Hint At Recession, Weakest Since Financial Crisis. Submitted by Tyler
Durden on 05/13/2015. Despite bouncing back last month at the fastest pace
in a year, April just printed the slowest YoY growth since Nov09 at just
0.9% (retail sales has still missed expectations for 4 of the last 5
months). Against expectations of a 0.2% MoM rise in April (considerably slower
than the 0.9% pop in March), Retail Sales missed with a 0.0% change. Ex-Auto
and Gas MoM also missed with a mere 0.1% gain (aghainst +0.5% exp.) but it was
the control group that saw the biggest miss, printing 0.0% (against hopeful
expectations of a 0.5% gain). There was widespresd weakness with outright
declines in autos, furniture, gas, food, electronics (AAPL hangover), and
general merchandise.
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The
Central Problem With Central Banks: They Become The Greater Fools/Bag-Holders.
Submitted by Tyler
Durden on 05/13/2015. The conventional view is that the Fed will never need
to print-and-buy more than a few hundred billion dollars to stem the tide of
selling. But the conventional view has a fatal flaw that Greenspan outlined in
his Foreign Affairs article: when markets go bidless,
"animal spirits" may be beyond calming. Once central bank
buying fails to stem the tide, markets will truly panic. Can central banks
double, triple and quadruple their balance sheets almost overnight to absorb
the mass dumping of risk-on assets? Will there be no consequences,
political and financial, to central banks becoming the greater fools who
will buy even as asset values are crashing?
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Chicago
"Junking" Triggers $2.2 Billion Payment, Deepening Financial Crisis. Submitted by Tyler
Durden on 05/13/2015. Following an Illinois Supreme Court ruling that
struck down a pension reform plan aimed at closing a $100 billion funding gap, Moody's
downgrades Chicago to junk, giving the city the dubious distinction of being
the only major city "in recent history" to carry such a low rating
other than Detroit. Chicago now faces accelerated payments to creditors of
more than $2 billion.
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Submitted by Tyler
Durden on 05/13/2015 - 07:45
- Obama, McConnell missteps undercut trade pact in U.S. Senate (Reuters)
- Bears Beware: Rout Puts Investors on Wrong Side of Central Banks (BBG)
- U.S. Set to Rip Up UBS Libor Accord, Seek Conviction (BBG)
- Greece’s Creditors Said to Seek EU3 Billion in Budget Cuts (BBG)
- Amtrak train derails in Philadelphia, killing at least five (Reuters)
- Oil glut worsens as OPEC market-share battle just beginning (Reuters)
- China Stimulus Aims at Restructuring Trillions in Local-Government Debt (WSJ)
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Greece
Is Now Just A Political Issue. Submitted by Tyler
Durden on 05/13/2015. The troika wants the Syriza government to execute
things that run counter to their election promises. No matter how many
people point out the failures of austerity measures as they are currently being
implemented in various countries, the troika insists on more austerity. Even as
they know full well Syriza can’t give them that because of its mandate. Let
alone its morals. It’s a power game. It’s a political game. It always was.
But still it has invariably been presented by both the international-press
and the troika as an economic problem.
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WASHINGTON BLOG
Former
U.S. Government Official: U.S. Is ALREADY at War with China and Russia.
Posted on May 13, 2015 by WashingtonsBlog . U.S. Has
Already Started WWIII. Top economic and political experts say we’re drifting towards World War 3.
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Nazism
of Ukraine’s Western-Backed Government Is Hidden by Western ‘News’ Media.
Posted on May 13, 2015 by Eric Zuesse.
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Timothy
McVeigh and the Oklahoma City Bombing. Posted on May 13, 2015 by WashingtonsBlog . Cover-up? False flag? Wacky conspiracy theory?
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LATINO NEWS
A 40 años del asesinato de Roque
Dalton. Érase un hombre a su pluma y fusil atado. Pablo A. Jofre Leal
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Occidente se arroga el derecho a intervenir en
otros paÃses. Roberto Savio
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Argentina El Estado Monsanto . DarÃo Aranda
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El Club de los “atemperados”: derechas y nuevas
derechas en América Latina . Esteban De Gori, Gisela
Brito
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Cuba La Isla se amplÃa al mundo ¿es un proceso o una
circunstancia? VÃctor Andrés Gómez
RodrÃguez
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PRESSTV
Who’s
supporting terror in Middle East? .
Wed May 13, 2015 This edition of The Debate focuses on the real sponsors of
terrorism in the Middle East.
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‘US
uses ISIL to fight its dirty wars’ Wed May 13, 2015 Stephan Lendman
says the United States uses ISIL to fight its dirty wars.
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NATO
to stay in Afghanistan after 2016. Wed May 13, 2015 The NATO secretary
general says the alliance will keep some troops in Afghanistan beyond 2016.
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Greek
economy back into recession. Wed May 13, 2015 New data show that
Greece’s economy has slipped back into recession after contracting by 0.2 percent
in Q1.
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‘US
abuses Minsk II deal on Ukraine’ . Wed May 13, 2015 The US is abusing
the framework of the Minsk II agreement on Ukraine to pursue its own agenda in
the region, a geopolitical analyst in Europe says.
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‘IAEA
request may impact Iran security’. Wed May 13, 2015 A commentator says
there has to be an opportunity for Iran to reject IAEA’s request to inspect its
military sites because it will impact Iranian national security interests.
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