OCT 11 16 SIT EC
y POL
ZERO HEDGE
ECONOMICS
Having
jawboned rate-hike odds up near cycle record highs (December odds at ~70%), The
Federal Reserve's Labor Market Conditions Index (LMCI) is crashing.
Following a brief dead cat bounce in July, LMCI is now accelerating lower.
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Corporate buybacks plus
dividends will surpass $1 trillion in 2016, for the first time ever, according
to Barclays calculations. This means that payouts to shareholders will surpass
total S&P500 cash flow by a whopping $115 billion. And with corporate balance sheets increasing encumbered, Barclays
believes that the rate of payouts, rising at 20% in recent years, is about to
grind to a halt, meaning that for stocks, the "party is almost
over."
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While record food-stamps,
sinking real wages, and soaring healthcare and shelter costs are all in the
realm of peddled fiction; US Retailers are never shy
of alternative excuses for their underperformance. It's too-hot, it's too-cold; it's too-low gas prices; it's
too-high gas prices; but now, as
Bloomberg reports, US retailers and restaurants are floating another
excuse to explain their lackluster performance - it's the election, stupid!
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This ratio has a flawless track record of bottom-picking
the S&P 500 since 2009; is it signaling another “buy the dip”, or
breaking its 7-year run?
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Where's
Vladimir Putin when we need him? Having
saved the world yesterday by spiking crude oil with his comments, the return of
bond traders today sees a resumption of risk-parity fund deleveraging (as bond-stock
correlations neared record highs).
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Like the
Titanic, the EU was presented as a “super-state”, one that would be bigger and
better than all the others in Europe. It was
declared unsinkable. Yet, soon after it was launched, it hit an
unexpected iceberg from which it could not recover. Years from now, historians
and economists will debate the identity of the EU iceberg. Some will say Brexit, others will say Deutsche Bank. Still
others will cite events that we have not yet seen.
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Currently economists and market
watchers roughly fall into two camps:
Those who believe that the Federal Reserve must
begin raising interest rates now, and those who believe that raising rates now
will simply precipitate an immediate recession and force the Fed into
battle without the tools it has traditionally used to stimulate growth. Both camps are delusional, but for
different reasons.
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With bond-stock correlations reaching record
highs (and broad risk parity fund performance deteriorating rapidly),
Ray Dalio’s $150 billion Bridgewater Associates managed modest gains across its
main strategies last month - even as macro funds have suffered amid policy and
political uncertainty. However, the manager of the
world's largest hedge fund warns
“Investment returns will be very low going forward,” in his latest investor remarks,
suggesting that betting on
gold could prove preferable.
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So stocks are sold, bonds are sold, and
volatility is forced higher..
See big image at: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/10/08/20161011_EOD4_0.jpg
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POLITICS
Unlike
Reuters' political "reporters", it seems the hacker
collective
"Anonymous" is less impressed by Hillary Clinton's
awesomeness. Following Wikileaks' recent release of leaks, Anonymous reminds Americans of the 'career criminal' in a
video containing a well researched list of wrong-doings, exposing the actions
of Hillary over her career.
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Not only will Fed policy not fix what's broken,
it will actively make the structural
problems worse.
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New emails reveal that "Friends of
Bill" ("FOB" for short) received special access to participate
in Haiti recovery efforts after the 2010 earthquake in which over $10 billion in emergency aid contracts
were awarded.
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In an election year where libertarians have reason to fear every
candidate on the ballot, public
calls for Hillary Clinton to be held accountable for her obvious violations of
the law are a rare bright spot.
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Moments ago, Wikileaks just released its third data dump from
the hacked email account of Hillary Clinton's Campaign Chair, John Podesta,
which is becoming a true headache for Hillary Clinton and her supporter base.
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WORLD AND ME ISSUES
As the U.S. elections draw nearer, the amount of bellicose rhetoric from politicians and key military commanders
(in truth, “politicians” as well) has been increasing. The main focus of that rhetoric has been directed toward
Russia, and is also “blathered” in the direction of China, North
Korea, and Iran when it suits U.S. political interests.
The problem is that all of it is not just talk: action has been taken,
especially regarding Russia and the Syrian theatre of operations.
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A
Strange "Production Cut" - OPEC Oil Output Hits Record High As
Rosneft Says "No" To Production Cap
Something odd happened on the
way to the recently "agreed upon" OPEC production cut: instead of cutting production, OPEC countries have seen
their oil output surge, and according to an IEA reported released today,
the oil producing countries pumped oil at record-high volume last month, while
officials from three member countries, those exempt from the "deal",
said they plan to raise output even more in the near future.
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Some
oil-price factors are temporary, but others are structural and permanent.
The debate about the causes and effects of the price slump since 2014 will
continue, which both reflects and underscores a fundamental point: the conventional wisdom about the global oil market no longer
applies.
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As the powers-that-be
play whack-a-mole with various systemic risk indicators,
desperately tamping down contagion concerns, amid no progress in strengthening
the world's most systemically dangerous bank; we warned two weeks ago of yet
another canary in the coalmine of Deutsche Bank's demise (that no one was
looking at). This week, that
canary... died.
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In a report published by S&P Global, the rating agency's analysts
noticed not only the latest deterioration in corporate China, but also the
relentlessly growing leverage, noting that rising debt levels will worsen the
credit profiles of China's top 200 companies, requiring the country's banks to raise $1.7
trillion in capital to cover a likely surge in bad loans.
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Global markets and US equity futures fell on Samsung Galaxy Note 7
contagion concern, while the dollar rose to its strongest level in 11 weeks and
U.S. bonds declined as investors boosted wagers that the Federal Reserve will
raise interest rates this year.
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- Samsung scraps Note 7 (Reuters)
- Note 7 fiasco could burn a $17 billion hole in Samsung accounts (Reuters)
- Trump's struggles may depress Democratic voter turnout (Reuters)
- Major Investor Sues Theranos (WSJ)
- S. Africa’s Gordhan to Be Charged; Rand Plunges Most Since June (BBG)
- Oil price falls back from one-year highs, hit by OPEC deal concerns (Reuters)
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DEMOCRACY NOW
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GLOBAL RESEARCH
Two articles with
controversial content , signed by anonymous people
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Alternative
Power Centers Running the World. The Role of Think Tanks, Foundations,
Councils, NGOs … By Harun Yahya,
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Leaked
Email Reveals Potential Collusion Between State Department And Clinton Election
Campaign By Tyler Durden,
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INFORMATION CLEARING HOUSE
How Long
are People Going to be Willing to Live in this Illusion? By
Michael Hudson
To save the banks from making losses that would wipe out
their net worth, you’ll have to get rid of Social Security.
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U.S.
Military Operations Are Biggest Motivation for Homegrown Terrorists, FBI Study
Finds
By Murtaza Hussain, Cora Currier
By Murtaza Hussain, Cora Currier
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American
Power at the Crossroads By Dilip
Hiro
China and Russia are
now trying to ensure that Washington no longer exercises unrestrained power
globally
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Mainstream
Media’s Propaganda War on Syria and Russia By Joe Clifford
Malcom x statement AT:
http://www.informationclearinghouse.info/malcolm-quote.JPG
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Enough
Sabre Rattling Already! By David Stockman
The Washington War
Party is coming unhinged and appears to be leaving no stone unturned when it
comes to provoking Putin’s Russia
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U.S. and
U.K. Continue to Participate in War Crimes, Targeting of Yemeni Civilians By
Glenn Greenwald
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The
Illusion of US Power in the Middle East By Gareth Porter
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Engage In
Sex, Not War By Paul Craig Roberts
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Clinton
Campaign Chair: Hillary Hates ‘Everyday Americans’ By Michael Sainato
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COUNTER PUNCH
Gerald Sussman Russkies at the Doorstep
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Ann Robertson - Bill Leumer
The New York Times Rejects Majority Rule
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Norman Pollack . Indictment: US Guilty of War Crimes
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SPUTNIK and RT SHOWS
Obama Tells Women Protesters to 'Get Own Rally' to Criticize
Bill, Hillary Clinton https://sputniknews.com/us/201610121046244334-women-protest-clinton/
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Republican Elite Far Prefers Clinton to Win US Election, But
Trump Has Grassroots Support https://sputniknews.com/us/201610121046244091-clinton-republican-elite/
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Trump Desire to Get Along With Russia Contributes to
Republican Split https://sputniknews.com/politics/201610121046243893-trump-russia-relations/
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GOP Meltdown: Trump Lashes Out on Twitter After Party Revolt https://sputniknews.com/politics/201610111046238773-trump-twitter-tirade-party-revolt/
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Russian MoD Denies UK Allegations of Involvement in Aleppo
Aid Convoy Attack https://sputniknews.com/middleeast/201610121046245761-russia-uk-convoy-attack/
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RT SHOWS
RT SHOWS
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WASHINGTON BLOG
In Part One of this article I addressed the deceit
of Hillary Clinton and politicians of all stripes as they promise goodies they
can never pay for, in order to buy votes and expand their power and control
over our lives.
I created the chart
below for an article I wrote in 2011 when the national debt stood at $14.8
trillion, with my projection of its growth over the next eight years. I
predicted the national debt would reach $20 trillion in 2016 and was ridiculed
by arrogant Keynesians who guaranteed their “stimulus” (aka pork) would
supercharge the economy and result in huge tax inflows and drastically reduced
deficits. As of today, the national debt stands at $19.7 trillion and is poised
to reach $20 trillion by the time “The Hope & Change Savior” leaves office
on January 20, 2017. I guess I wasn’t really a crazed pessimist after all. I
guarantee the debt will reach $25 trillion by the end of the next presidential
term, unless the Ponzi scheme collapses into financial depression and World War
3 (a strong probability).
See graphic at: http://www.whatamimissinghere.com/wp-content/uploads/2011/08/US-National-Debt-1980-2019-Chart.jpg
The total disregard
for the most perilous issue confronting the nation by politicians of all
stripes is a national disgrace, proving beyond a doubt the elite ruling class
has no conscience, no sense of morality, and no loyalty to the common people or
future generations. The sociopaths who act as if they are in control addressed
the 2008 global debt meltdown by adding tens of trillions in new debt to an
already unsustainable system, setting the world on a course towards total
financial collapse and world war.
⇒ Keep Reading
⇒ Keep Reading
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Yesterday I described the conditions that render the U.S.
ungovernable. Here is a chart of why the U.S. economy will also be
ungovernable. Longtime readers are
acquainted with the S-curve model of expansion, maturity, stagnation and
decline.
This is why the economy will be ungovernable: all the financial gambits that have been
played to create the illusion of “prosperity” have reached stagnation/decline.
The key take-away is that the financial gambits–QE, zero
interest rates, etc.–did not actually address the economy’s structural
problems. All the Federal Reserve
and fiscal stimulus policies accomplished was to prop up the corrupt, stagnant
engine of debt-serfdom, rising inequality and financial fragility.
All the monetary gambits are versions of trickle-down
economics: if we give free money to
banks and financiers, this will spur speculation that inflates asset bubbles
that generate a wealth effect–households looking at their swelling IRA
accounts will feel wealthier and thus more enthused about borrowing and
spending money they shouldn’t borrow and spend.
But “trickle down” wealth
effects do absolutely nothing to address the structural challenges that are
undermining the economy: they do nothing to address the collapse of interest
income for the households that save rather than spend, the collapse of low-risk
yields for pension funds, the demographic time-bomb of pensions and social
welfare programs that are unsustainable, stagnating productivity, the crushing
pressure of soaring healthcare costs, and so on.
⇒ Keep Reading
⇒ Keep Reading
NOTICIAS IN SPANISH
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Siria en la conciencia de Europa Santiago Alba Rico y Carlos Varea
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PRESS TV
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