DIC 16 16 SIT EC
y POL
ZERO HEDGE
ECONOMICS
While Gold spiked today on China, it remains the biggest
laggard post-Fed (though even bank stocks are now red)...
See all charts at: http://www.zerohedge.com/news/2016-12-16/stocks-suffer-worst-week-election-banks-bullion-bonds-sink
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The
"Trump Trade" continued with global equity funds receiving $21
billion in inflows in the past week according to Bank of America, as investors
rushed into reflation assets, while money flowed out of bonds for seventh week
in a row. For one more week news for the "active managed" community
was negative: of the $20.7 billion in equity inflows, $31 billion was in the
form of ETFs, which meant another $10 billion in outflows from mutual funds and
other active vehicles.
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As it goes in silver, so it goes in gold. In London at least. In a bid to have UBS
reinstated as a defendant in a London Gold Fix antitrust
lawsuit, plaintiffs documents submitted to a New York Court last
week include explosive chat
room transcripts of UBS and traders from different banks encouraging each other
to “push,” “smack,” and “whack” gold prices.
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As the Obama administration continues to
applaud its "housing recovery", homeownership rates among "Young
Adults" and "Blacks" are down 18% and 16%, respectively, since
2004...And while that's definitely a
big "Change," its somewhat lacking on the "Hope."
See all the charts and explanation at: http://www.zerohedge.com/news/2016-12-16/obama-housing-recovery-crushes-blacks-young-adults-homeownership-rates-crash
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Trade is an essential part of economic
prosperity, but how much do you know
about global trade?
The interactive
visualization you see in this post was created by data visualization expert Max
Galka from the Metrocosm blog.
(Also check out his new project, Blueshift,
which allows users to upload data and visualize it on maps with no coding
required.)
Trade is an essential part of economic prosperity, but, as
Visual Capitalist's Jeff Desjardins asks, how much do you know about global trade?
VIDEO
URL https://youtu.be/WPLnMsAhrxg
The stunning
visualization below helps to map international trade on a 3D globe, plotting
the exchange of goods between countries. It enables the abstract concept of
trade to become more tactile, and at the same time the visuals make it easier
to absorb information.
EXPLORING THE MAP
Here are a few things
we found particularly interesting, as we scanned through the map:
- When looking at the globe as a whole, trade is concentrated into obvious hubs. The United States, Europe, and China/Japan are the most evident ones, and they are all lit up with color.
- There are also obvious have-nots. Take a look at most of the countries in Africa, or click on an individual country like North Korea to see a lack of international trade.
- In fact, North Korea is completely vacuous, except for one lonely dot floating to China every so often. After taking a quick look at the data, it seems China takes in over 60% of North Korea’s exports, which are mostly raw materials such as coal, iron ore, or pig iron.
- Now click on South Korea, and the situation is completely different. By the way, South Korea exports $583 billion of goods per year, while the hermit nation does just $3.1 billion per year.
- This map also shows how dependent some countries are on others for trade. Look at Canada, a country that sends close to 75% of its exports to the United States. Mexico has a similar situation, where it does most of its business with the U.S. as well.
- This is a stark contrast to Cuba, which doesn’t trade enough with any one partner to have it visualized on this scale at all. Cuba has exports of only $1.7 billion, and its largest trading partner is China, which only takes in $311 million of goods per year.
Want to see more on
international trade? Check out this set of maps that shows China’s rising
dominance in trade, or the flow
of oil around the world.
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If this market rally seems eerily familiar, it’s because
it is. In fact, the backdrop of the
rally reminds me much of what was happening in 1999...
“If this market
rally seems eerily familiar, it’s because it is. In fact, the backdrop of the rally reminds me much of what was happening
in 1999.
1999
- Fed was hiking rates as worries about inflationary pressures were present.
- Economic growth was improving
- Interest and inflation were rising
- Earnings were rising through the use of “new metrics,” share buybacks and an M&A spree. (Who can forget the market greats of Enron, Worldcom & Global Crossing)
- Stock market was beginning to go parabolic as exuberance exploded in a “can’t lose market.”
If you were around then, you will remember.”
Of course, this is
what we were told this week by Janet Yellen, and the Fed, as they finally
lifted rates for the first time in 2016 with the expectation the economy
will continue to perform “well,” the current rate is only modestly below the
“neutral” rate, and the rate hike is a vote of confidence in the economy. Or
course, the irony is when she stated the Fed is expecting to hike rates 3-times
next year. Considering their previous track record for lifting rates, it
is astonishing the market continues to “buy” the nonsense.
As I penned last
weekend, the ramp up in the market against a backdrop of a “fear” of rising
inflationary pressures, when none really exists, is a dangerous brew for the
markets. With interest rates and the
U.S. Dollar already heavily front running the Fed in the tightening of monetary
policy, there is a very high risk of an “accident” occurring which takes
investors by surprise.
Here is what I am reading this
weekend.
Fed, Economy & More Trump
- Trump’s Unhappy Fate Is To Oversee A Crisis by James Rickards via Daily Reckoning
- Fed & The Destruction Of The American Dream by Danielle DiMartino-Booth
- Why Trump Is Biggest Risk To Global Economy by Ivana Kottasova via CNN Money
- Reversing The Tragic Trends Of Our Time by IBD
- Trumps Self-Defeating Trade Policy by Steve Chapman via Reason.com
- Economy Not As Strong As Consensus Believes by Robert Johnson via MorningStarr
- What A Fed Rate Hike Will Mean by Patrick Gillespie via CNN Money
- What Markets Did Last Time Fed Raised Rates by Katie Little via CNBC
- Some Factors To Consider About Trumphopia by Anthony Mirhaydari via The Fiscal Times
- Will Fed Words Finally Come To Something by Caroline Baum via MarketWatch
- Trump Doesn’t Herald New Paradigm Of Growth by Joachim Fels via PIMCO
- Trump, Crony Capitalist-In-Chief by David Cay Johnston via Daily Beast
- Fed’s Rate Increase And You by Stephen Gandel via Fortune
- Air Pocket Coming To Houston Home Sales – by Aaron Layman
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Markets
- Bonds Are Flashing A Warning Sign For Stocks by Jonathan Garber via BI
- The One Chart “Trump Traders” Must See by Greg Guenthner via Daily Reckoning
- Gundlach: Watch For “Sell Off” By Inauguration by Akin Oyedele via BI
- Now Is The Perfect Time To Buy Stocks by Bryan Rich via Forbes
- How To Make The Trump Rally Last by Mohamed El-Erian via Bloomberg
- The “Big Fat Ugly Bubble” Is The Threat by Mark Spitznagel via ZeroHedge
- Real Winner Of OPEC Deal: Shale Drillers by Patti Domm via CNBC
- Markets In The Trump Era by Jonathon Trugman via NY Post
- Feel Great About The Market? Some Perspective by Gregg Fisher via Gerstein-Fisher
- How Trump Could Blow Up The Bull Market by John Mauldin via Forbes
- 7-Stumbling Blocks To The Market by Evelyn Cheng via CNBC
- 5-Lies Investors Tell Themselves by John Coumarianos via WSJ
- Trump Rally Biggest Since Hoover by Sue Chang via MarketWatch
- What Would Bertrand Russell Say About The Index by Doug Kass via Real Clear Markets
- Dow 20,000? Do I Hear 21? by Michael Kahn via Barron’s
- Back To Extreme Greed by Chris Sheridan via Financial Sense
- Dividends Show Distress In Economy by Ironman via Political Calculations
- How Overpriced Is The Market Anyway by Michael Kahn via Barron’s
- Goldman Sachs’ Covert Scheme To Raise Oil Prices by Michael Covel via Daily Reckoning
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Interesting Reads
- Real “Fake News” Is Mainstream Media by Tom Basile via Forbes
- This Christmas We Need Humility by Stephen Moore via The Washington Times
- The Complexity Of Inequality by Michael Heise via Project Syndicate
- 4-Lessons Of America’s Election by Michael Boskin via Project Syndicate
- Risk Of A Global Conflagration Has Risen via Council On Foreign Relations
- Time For A Return Of Keynes by Therese Raphael via Bloomberg
- Did ACA Add 20-Million To Insurance Rolls? No. by IBD
- Hamilton Would Not Approve by Lambert Strether via Naked Capitalism
- A Short Squeeze In Treasuries by Edward Harrison via Credit Writedowns
- American Dream May Be Hard To Revive by Bob Davis via WSJ
- Will Trump Bring Higher Rates? Don’t Count On It by Neil Irwin via NYT
- Emerging Market Hat Trick by Rob Arnott via Research Affiliates
- Interest On Debt Fastest Growing Budget Item by CRFB
- Historical Valuation Measures Are Double by John Hussman via Hussman Funds
- This Is The Index To Watch by Dana Lyons via Tumblr
- Why Is The Fed Tilting At Windmills by Jesse Felder via The Felder Report
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POLITICS
Hannity: "Let me be clear, Russia did not give you the Podesta documents
or anything from the DNC?"
Assange: "That's correct."
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“If
[the CIA] are going to allege something like that they should show the trace
route, and the path it went and how, and through which path those
packets went from the DNC to the Russians to WikiLeaks. They failed to do that. That tells me that what they are saying is a pack of crap.
They are just concocting these things
to support the existing administration and to also support the move toward a
new Cold War.”
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Moments ago, the WaPo, whose main mission over
the past month has been to pin Clinton's presidential failure first on Russia
and then on Vladimir Putin, reported that FBI Director James B. Comey and
Director of National Intelligence James R. Clapper Jr. have backed a CIA
assessment that Russia intervened in the 2016 election in part to help Donald
Trump win the presidency.
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"Do not even consider getting into a new Middle East war - unless
Congress votes to authorize it, the American people are united behind it, vital
U.S. interests are clearly imperiled, and we know how the war ends and when we
can come home. For wars have a habit of
destroying presidencies."
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Yesterday, Facebook announced plans to use a
"third-party fact checking organization" known as The Poynter Institute
to flag "fake news." Imagine our
complete shock when we discovered that the funding sources behind Poynter included the who's who of Billionaire
leftists like George Soros.
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WORLD ISSUES and ME
The derisking following headlines of China seizing a US underwater drone has sparked
further weakness in the offshore Yuan, slamming USDCNH to record lows...
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Putin has had enough of the
relentless barrage of US accusations that he, personally, "hacked the US
presidential election" and on Friday his spokesman told reporters in Tokyo
that "you need to either stop talking about it,
or finally show some kind of proof. Otherwise it just looks very indecent."
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The Russians knew!!....
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DEMOCRACY NOW
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GLOBAL RESEARCH
Vladimir
Putin was Never Head of the KGB, Nor Did He Order the Hacking of the DNC By Michel Chossudovsky
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Constitutional
Crisis, Movement to Undermine President-elect Donald Trump’s Accession to the
White House? Michel
Chossudovsky
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INFORMATION CLEARING
HOUSE
While Decrying “Massacre” in Aleppo, US Steps
up Bloodshed in Mosul By Bill
Van Auken
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The "Elite" Coup Of 2016 By Moon Of Alabama There is an "elite" coup
attempt underway against the U.S. President-elect Trump
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COUNTER PUNCH
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Jeffrey St. Clair That
Magic Feeling: the Strange Mystique of Bernie Sanders
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Missy Comley Beattie Waste
No More Time On Clinton
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SPUTNIK and RT SHOWS
Rania Khalek: Jihadists US Empowered in Syria Are Going To
Attack Us
https://sputniknews.com/middleeast/201612161048671660-jihadists-us-empowered-syria-attack/
https://sputniknews.com/middleeast/201612161048671660-jihadists-us-empowered-syria-attack/
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Fake News? Obama’s Russia Myths Debunked
https://sputniknews.com/politics/201612171048678443-obama-press-conference-russia-factchecking/
https://sputniknews.com/politics/201612171048678443-obama-press-conference-russia-factchecking/
Related
Putin Gave Obama 'Clear Response' on Alleged Russian
Interference in US Vote
https://sputniknews.com/politics/201612161048637101-putin-obama-us-vote/
https://sputniknews.com/politics/201612161048637101-putin-obama-us-vote/
Related
President Obama’s End
of the Year News Conference
https://sputniknews.com/us/201612161048672776-president-obama-press-conference/
https://sputniknews.com/us/201612161048672776-president-obama-press-conference/
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US Arming Opposition Rebels in Syria Allied With Al-Qaeda -
Congresswoman
https://sputniknews.com/us/201612171048679754-us-armed-syria-al-qaeda/
https://sputniknews.com/us/201612171048679754-us-armed-syria-al-qaeda/
Related
US Lawmaker Gabbard Discussed With Donald Trump Daesh, Syrian
War
https://sputniknews.com/us/201611211047686604-gabbard-trump-daesh-syria/
https://sputniknews.com/us/201611211047686604-gabbard-trump-daesh-syria/
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RT SHOWS
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WASHINGTON BLOG
Posted on December 16, 2016 by Charles
Hugh Smith
There is only one narrative in
the mainstream media about populism: it destroys democracy and leads straight
to fascism. This is an ignorant and false narrative. Here’s a typical example of the mainstream anguish
that the elites’ preferred narratives are falling apart because they’ve left
the bottom 95% behind: How Democracies Fall Apart: Why Populism Is a Pathway
to Autocracy
Granted, this is an international context for populism, but this is no excuse for overlooking America’s history of
progressive populism. Are the “experts” beating the drum that
populism inevitably leads to autocracy so poorly educated about American
history that they don’t know that populism can be powerfully progressive, or
are they being willfully blind to serve their elitist masters?
It’s time we recover America’s
history of progressive populism. It’s awfully easy for elites and
their toadies (witting or unwitting) to dismiss the citizenry who reject elitst
narratives as “deplorables,” just as it is easy for them to dismiss populist
resistance to their control as being “undemocratic.”
This is of course the exact
opposite of the truth: populism is the result when the institutions
of “democracy”–i.e. the machinery of elite control–have failed to respond to
the concerns and opinions of non-elites.
Having been rendered impotent and voiceless in the
elite-dominated machinery, the bottom 95% have no alternative but to join a
populist movement–a movement that in America often takes the form of a third
party or an insurgency in an established political party (for example, Sanders
and Trump).
⇒ Keep Reading
⇒ Keep Reading
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NOTICIAS IN SPANISH
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La crisis italiana puede generar una nueva
crisis del euro
Sergi Cutillas
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Keiser
report 1006 El reto que afrontan quienes
causaron la crisis financiera mundial tras la victoria de Trump
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PRESS TV
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US becoming vulnerable to Russia: said Obama
[[The loser of the
Syrian war, claiming now stupid supremacism.
Wake up OB: regimen
change in Syria is over. If you want to set a
Road to WW3 for him
to walk in it, it won’t work. Trump has the
right to a 2nd
term and he will got it If he avoid WW3. You wrong if
you believe Trump is
an idiot.. Trump defeated you & Hillary in one
single shot with your
own means: fraud & bla-blah. Who is the idiot?
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NO EVIDENCE NO CASE. New electoral system needed by 2020
Hillary commits fraud
during the primaries & obstructs Justice pursuit
by FBI director James
Comey. Now she wants to accuse the FBI, besides
Russians, of favoring Trump. Without hard evidences in either
case? ...
That is a puzzle for
idiots … Nobody in his right mind will take it.
The fact is that both
of them commit fraud, Hillary in the primaries and
Trump in the finals.
So, none of them is qualified to run in a new round
of elections, if
happens. Both of them broke Laws (Trump evaded taxes)
The case is worse with Hillary: she is guilty en the Libyan
affair. Deleting
tapes is obstruction of justice and the killing of a US
ambassador is
criminal negligence (personnel who die did demand help from
her).
The killing of a
Lybian President is a violation of International rules,
and receiving money
from Saudis to facilitate such massacre is a
violation of US
rules. Besides there are evidences of arms & tech
given to Saudi terrorists. They used to spread
terrorism worldwide
(specially Syria). In sum,Hillary’s
complicity in terrorism, her frauds
and crimes are still unpunished. Her indictment should be continued
and jail is the place that she deserves.
Besides, it is false that she won the popular vote in the
finals, they both
Hillary and Trump were against the recount pursuit by Jill
Stain. Hillary
did it with the support of Obama & members of the
Judiciary system
that are against Trump. She cannot invoke the recount at
convenience,
that is totally
dishonest. The recount was sabotaged with her complicity.
She cannot mention
“popular vote” in her favor because of such sabotage
and because she
killed the popular vote in favor of Sanders during the
primaries, and she
did it via super-delegates maneuvers. That is fraud too.
Certainly we deserve a new round of election, but not with
super-packs to
buy elections, nor duopoly system , and much less with
super-delegates
and obsolete rules. UNFORTUNATELY,
the national situations is so critical
that an election
can break the whole Unity of the Nation.
We have to
wait and meanwhile
pay attention to a new electoral system proposed by
qualified people of
the Nation. Before its approval in the Senate and the
Juficial System, the
Nation should give their voice via Referendum.
Now we should keep Trump as President while we fight town by
town,
State by State for a new Electoral rules. The previous
one was broken by
crook people like
Hillary. She cannot make claims on rules
she broken,
and WE SHOULD AVOID THIS TYPE OF PROBLEMS HAPPEN AGAIN.
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West getting revenge for Aleppo victory: The
West's recent initiatives at the United Nations over the situation
in Syria are the "saddest images of diplomatic and political
hypocrisy,” Syria's envoy to the UN tells Press TV. http://www.presstv.ir/
related: Aleppo
liberation ‘significant blow’ to Saudi
[[ Syria has the sovereign right
to defend the integrity of the whole nation invaded by armed foreigners. If the
UN is unable to defend his core principle, what is that useful for?. Either the UN is re-organized from inside
(severely punishing all pro-war rulers who violated “La Carta Magna”)
or the UN is declared obsolete and regional UN untis will be re-assembled
(according to the alliance they got). BOLTON was the one who manage to put the
UN at the service of US Empire and allies policies of neoliberal globalization.
These policies serve only an alliance of bankers and big
Corp who concentrate 99% of capital & riches in their hands while the labor
and middle case of the world live in complete misery. Current explosive
inequality is going to burst soon and not because there is a proletarian class
organized to deposed the 1%, but because the big sharks of capitalism cannot
accumulate more without eating small capitalists and the rest of the fish. Small capitalist can forge alliance with regional labor to
stop the big sharks.
Big bankers are now crashing and their money-bonds dumped
in trash (case London-Italy- Germany, etc). They cannot
advance because other capitalist of the world has created regional networks of trade
and production with their own banks, and these regional powers are armed too.
So,
we have a new reality: there is not one single hegemonic
power at world level, but the UN is still serving the US NATO allies as this was
still a unipolar system. In doing so, the UN is becoming obsolete. No
point in obeying their commands, if they don;t represent the interests of the
whole globe or the interest of special allies. When the UN only serves the
interest of one block they destroy themselves.
To give order to this new reality
(multi-polarism) we have to empower regional institutions instead of the UN. We
have to do what Israel did with the UN resolutions, trashed in the toiled.
For the USA to survive inside
this trend, we have to empower regions inside the FED, before CA and Texas or
others, separate totally from the FED. The same should be done at the level of
the UN: since regions already exist, we have to recognize their power and deal
with them. This means that we have to dis-empower those institutions of
the UN that Bolton empower it. (I don’t
know if he can be useful to do the opposite thing he did before). That is the
current situation in the north.
In the South we have similar chaos:
Mercosur does not represent the South, they represent the north bankers and
their policies. We need to trash that alliance. We have to create new one in
which economic concerns prevail –no mere politics.
We can create the
amazonas region with Brazil, Bolivia, Peru, Col an Ven. And create the Pacific
region at the same time with Chile, Peru y COL all united by a single
train-road (la panamericana del pacifico) . The other option could be to retake
the transpacific road and unite south Brazil with Bolivia and Peru. When the
infrastructure for this works is complete we can return to the Mercosur
project.
I do believe that in the south we put on the
socks over the boots. We have to do the opposite –forget the falso mercosur
& its sock in Ururguay- and pay attention to investments in the above
regions. And forget of course the traditional economic American
supremacism. If they want to invest –with no privileges attached- fine; if they
want to do the same as before, we have to do what Ecuatorians did it, take them
out.
If China, Russia an European want to invest in the
South, fine, under the same lcondition, with not privilege for no one. Then
after we can say that we can have a Mercosur independent from the north. In short, regional networks of business has to be
re-elaborated in the north & South as soon as possible (asap). ]]
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US will retaliate against Russia: Obama Obama
tickling Putin .. and this one not even laugh.
[ [ When a boxer is knocking
down, his brain doesn’t work but his mouse does, and say “I wants to continue”.
. Two thing could happen: the referee declare the game over to avoid further
damage.. or the trainers through a white taw inside the ring demanding: “stop the game”!. I
wonder who is going to save Obama from further damage .. his wife
instead of trainers, or a psychologist in the name of the crow ..instead of a
referee. ]]
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'Settlement bill to have consequences for
Israel : UN Chief [Imagine what the israeli chief may
think]
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