MAY 20 16 SIT EC y POL
….
REMEMBER
JUDGE JEANINE PIRRO
“ IT'S
TIME FOR A FEMALE PRESIDENT?. YEAH, IT IS – BUT NOT HER.”
“Hillary Clinton cannot be President of the United States, and
if the establishment, including law enforcement, does not stop her – you have
to,” Judge Jeanine Pirro said in her
opening statement on Justice.
This is not about
politics, she urged. “It’s about preventing people who have no regard for the law, or
you, for that matter, from running this country.”
“The majority of Americans
believe, and are right, that Hillary Clinton is untrustworthy, dishonest and a
liar,” said J.Pirro.
"And don't give me that
woman thing where it's time for a female president. Yeah, it is
– but not her.”
….
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ZERO HEDGE
ECONOMICS
"Ugly
Outcomes" Loom As Fed Suppression Forces Long Term Economic Repression. Submitted by Tyler
Durden on 05/20/2016 : The Federal Reserve has created a semblance
of normality, but by suppressing interest rates they have enabled
non-linear, and very possible ugly outcomes, to become entrenched in US
public debt dynamics. The euro crisis from 2010 to this day show how difficult
it can be to regain investor trust when the unsustainability is first revealed
for all to see.
While inflation will help nominal
GDP grow along with the debt, the Federal Government will still be paying a
similar share of its nominal GDP in 2020 as the Greeks and Italians pay to
service all their debt today. At this point, it is worth noting
how interest rates and hence interest payments suddenly becomes non-linear at
crucial inflection points where investor confidence is lost. When the euro
crisis first erupted this is exactly what happened to troubled nations.
Confidence is easily lost among investors when a nation is on an unsustainable
trajectory. IMAGE
AT: http://i2.wp.com/bawerk.net/wordpress/wp-content/uploads/2016/05/Interest-payment-as-share-of-NGDP-comparison-with-Greece.jpg?resize=730%2C433
Some people argue that the interest rate calculation is
flawed. We beg to differ. Firstly, the Federal Reserve remits all the interest
paid from the Treasury back to the very same Treasury; so in effect the USD2.46
trillion held in marketable debt by the Federal Reserve can be disregarded as
debt per se. In 2015 the Federal Reserve remitted almost USD100bn back to the
US Treasury in addition to the transfer of USD19bn in capital surplus as part
of the Fixing American’s Surface Transportation Act.
However, as the most overleveraged financial institution
in the world are forced to mark-to-market their massive losses on bonds as
rates are moving higher, the Federal Reserve must maintain earnings in order to
recapitalize itself. In other words, the transition from one interest regime to
another makes Fed holdings of US treasuries very real indeed. Fed remittances
will no longer be available to the US Treasury. SEE
IMAGE AT: http://i0.wp.com/bawerk.net/wordpress/wp-content/uploads/2016/05/Fed-Capital-Ratio.jpg?resize=730%2C427
Secondly, the roll over
risk would be greatly increased if the Fed’s RRP is not enough to lift rates (more
here) and stem the outflow of excess reserves. This means the Fed need to
stop reinvesting maturing bonds to drain excess reserves and put additional
pressure on longer dated rates (more
here).
In conclusion the Federal
Reserve has created a semblance of normality, but by suppressing interest rates
they have enabled non-linear, and very possible ugly
outcomes, to become entrenched in US public debt
dynamics. The euro crisis from 2010 to this day show how difficult it
can be to regain investor trust when the unsustainability is first revealed for
all to see.
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Existing
Home Sales Tumble In South, West Regions; Condo Sales Soar. S-
by Tyler Durden on
05/20/2016 :
Single-family existing home sales rose just 0.6% MoM in
April with The South and The West regions seeing notable declines in sales
(down 2.7% and down 1.7% respectively). What saved the headline priont was a
10.3% surge in Condo sales - among the best monthly spikes since the crisis
helped by a spike in sales in The Midwest - where prices are most affordable.
Condos saved the day: .. SEE IMAGE AT: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/05/18/20160520_homesales1.jpg
The NATIONAL ASSOCIATION OF
REALTORS -NAR's chief economy Larry Yun warns again:
"The temporary
relief from mortgage rates currently near three-year lows has helped preserve
housing affordability this spring, but there's growing concern a number of
buyers will be unable to find homes at affordable prices if wages don't rise
and price growth doesn't slow."
Finally, it is worth
noting that since the data was better than expected,
there was no scapegoating of "weather" this time.
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UNINTENDED
CONSEQUENCES OF MONETARY POLICY 101: Easy Money = Over-Capacity = Deflation. Submitted
by Tyler Durden
on 05/20/2016 : Somewhere back in the depths of time the
world got the idea that easy money - that is, low interest rates and high
levels of government spending - would produce sustainable growth with modest
but positive inflation. And for a while it seemed to work. But
that was an illusion.
China, as
with so many other things, was the epicenter of this delusion. In response to
the 2008-2009 financial crisis it borrowed more money than any other country
ever, and spent most of the proceeds on infrastructure and basic industry. It’s
steel-making capacity, already huge by 2008, kept growing right through the
Great Recession, and now dwarfs that of any other country. SEE IMAGE “The
long run growth in China’s Steel Industry” AT: http://i1.wp.com/dollarcollapse.com/wp-content/uploads/2016/05/China-steel-produciton-.jpg?resize=550%2C377
The result was
indeed higher prices for iron ore and finished steel up front (that is, the
inflation the architects of the easy money era expected and desired). But this was soon followed by falling prices as the
rest of the world’s steel makers tried to stay in the game. SEE IMAGE AT: http://i1.wp.com/dollarcollapse.com/wp-content/uploads/2016/05/Steel-price.jpg
It’s the same story pretty much everywhere. . In the US, retailers built new stores
at a pace that vastly exceeded population growth, apparently on the assumption
that consumers would keep borrowing in order to buy ever-greater amounts of
semi-useless stuff. And
now bricks and mortar retailing is suffering a mass-die-off. SEE IMAGE “Turning Point: After decades of
Aggressive Expansion , U.S, Mall Development has slowed dramatically” AT: http://i2.wp.com/dollarcollapse.com/wp-content/uploads/2016/05/Retail-space-per-capita.jpg
We’re clearly opening a door
to the volatility of the coming decade that will put today’s uncertainties to
shame.
One final, hopeful note:
In both scenarios, real cash, i.e., gold, is king. In the Great
Depression, things got cheaper, which made life easier and more fun for people
with money. During times of currency devaluation, gold soars in local currency
terms — and life gets easier and more fun for the metal’s owners. So
either way, owning sound money (as opposed to euros, dollars, yen or yuan) is
one part of a plan to survive what’s coming.
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QUICK ECON NEWS in zerohedge
Heavy
Metals Sending A Warning To Economy, Markets. Submitted by Tyler Durden
on 05/20/2016
The vast under-performance of industrial metals compared to
precious metals may be a warning sign regarding the strength of economic
demand and/or investor skittishness. Furthermore, if recent history is a
guide, the stock market may have a difficult time defying gravity much
further as the industrial metals continue their relative deterioration
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Oil
Price Slips After Rig Count Decline Stalls. Submitted by Tyler Durden on 05/20/2016 : For
20 of the last 21 weeks, US oil rig count has declined as it tracked the lagged oil price lower.
That changed today as oil rigs were unchanged week-over-week perfectly
syncing with the lagged lows in oil. Total rigs dropped 2 (thanks to gas
rigs) to a new record low but even that pace has slowed dramatically. Oil
prices are fading modestly on the news... :
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Chicago
Pension Liabilities Jump 168%, Understated By $11.5 Billion. Submitted by Tyler
Durden on 05/20/2016 : New accounting rules show Chicago has
understated its pension liabilities by $11.5 billion. At the end of 2015
the stated liability was $7.1 billion. Today it’s $18.6 billion. That’s a jump
in net liabilities of 168%. Mayor Rahm Emanuel has hopes pinned on union
concessions and help from the state legislature. Neither is likely. Let’s
stop pretending there is another solution, because there isn’t.
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POLITICS
ME & WORLD ISSUES
Oil
Supply Disruptions Quickly Fading As Canada, Libya, And Nigeria Resume
Production. Submitted by Tyler Durden on 05/20/2016 : Earlier
this week, Goldman unleashed the latest oil rally when
it admitted that while the oil market will take far longer to rebalance
due to rising low-cost oil production, it said that material supply disruptions are providing
a boost to near-term prices. Goldman provided the following visualization
of unplanned ongoing outages where it highlighted the recent stoppages in
Canada, Nigeria and Libya as the most prominent. But in a surprising
twist, it appears that virtually all three of the main disruptions choke points
are being resolved far quicker than expected.
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- Lacking new ideas, G7 to agree on 'go-your-own-way' approach (Reuters)
- Japan's Aso tells G7 FX stability vital, no competitive devaluations (Reuters)
- Snubbed by West, Russia rolls out red carpet for Asian leaders (Reuters)
- The Fed Has Something to Prove to Wall Street (BBG)
- Trump's Supreme Court list: all conservative, some provocative (Reuters)
- Nasdaq Raises Lawsuit Threat Over SEC’s IEX Speed-Bump Plan (WSJ)
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GLOBAL RESEARCH
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US
and NATO Leaders Say EgyptAir Flight 804 Was Bombed Despite Lack of Evidence,
Vow Military Response By Thomas Gaist,
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Hillary could’ve
met him too .. for her impunity. Their
game is going to be over soon.
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INFORMATION CLEARING HOUSE
Bribery Lets
Lobbyists Write The Law.
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U.S. & NATO’s Outrageous Behavior,
Greatest Threat that Exists. By Eric Zuesse
It’s become a
shameful America. And the American people aren’t to blame for it.
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The U.S.
Army’s War Over Russia. By Mark Perry
Top brass profess to
be really worried about Putin. But a growing group of dissenters say they’re
overreacting to get a bigger share of the defense budget.
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Yemen’s
Houthis Aren’t Iranian Puppets. By Thomas
Juneau
It is simply
inaccurate to claim that the Houthis are Iranian proxies.
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"Unfortunately,
today there was another incident with an Egyptian Airlines plane. Apparently,
it is a terrorist attack, which killed 66 people from 12 countries,” Bortnikov was cited as saying by TASS.
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COUNTER PUNCH
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Paul Street Hillary
Clinton’s Neocon Resumé
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Margaret Kimberley Obama’s
Civil Rights Hypocrisy
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Pete Dolack We
Can Dream, or We Can Organize
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Manuel E. Yepe Think
Tanks and the US Power Elite
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WASHINGTON BLOG
NSA Spied On UN to Make Sure Iraq War Resolution Passed …
and Assisted with Torture and Assassinations
You know the CIA was
involved with some of the least savory aspects of the Iraq War. .. But the NSA
got its hands dirty, as well. .. The
Intercept reports:
Specifically: SIGINT [signals intelligence – i.e. spying on
electronic and related communications, which is what NSA does] support to
the U.S. Mission to the United Nations [i.e. American diplomats] has enabled
and continues to enable the diplomatic campaign against Iraq. Your
efforts have been essential to the plans of the U.S. Permanent
Representative to the UN, Ambassador John D. Negroponte [a lovely gentleman], as well as
to the United Kingdom’s Permanent Representative, HMA Sir Jeremy Greenstock.
Ambassador Negroponte took time in February 2003 to provide
unsolicited feedback on the quality, timeliness, and quantity of NSA reporting.
He said that he could not imagine better intelligence support for diplomatic
activity than he receives from the daily NSA reporting on Iraq and the UN. He
was especially grateful for the timeliness of the information and asked our
representative at the U.S. Mission to the UN, … to pass his thanks to the
many people involved in its production and delivery.
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US
Hacking, Spyware Targets Include Mass Media, Phone, and Energy Companies Posted on May
19, 2016 by Robert
Barsocchini
US corporate government wants
to control and drain as much of the world as possible. Reuters, The Register, and others summarize
some of its methods:
“The U.S. National Security Agency has figured out how to
hide spying software deep within hard drives …. giving the agency the
means to eavesdrop on the majority of the world’s computers, according to cyber
researchers and former operatives.
Other outlets note:
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NOTICIAS IN SPANISH
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Política profesional y psicopatía. Marcelo Colussi Los políticos, ¿son enfermos?
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PRESS TV
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