Archive for the ‘Uncategorized’ Category
Paul Craig Roberts: "Americans Are A Conquered People"
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By Tyler Durden
Authored by Paul Craig Roberts,
As readers know, I have seen some optimism in voters support for Trump and Sanders as neither are members of the corrupt Republican and Democratic political establishments. Members of both political establishments enrich themselves by betraying the American people and serving only the interest of the One Percent. The American people are being driven into the ground purely for the sake of more mega-billions for a handful of super-rich people.
Neither political party is capable of doing anything whatsoever about it, and neither will.
The optimism that I see is that the public’s support of outsiders is an indication that the insouciant public is waking up. But Americans will have to do more than wake up, as they cannot rescue themselves via the voting booth. In my opinion, the American people will remain serfs until they wake up to Revolution.
Today Americans exist as a conquered people. They have lost the Bill of Rights, the amendments to the Constitution that protect their liberty. Anyone, other than the One Percent and their political and legal servants, can be picked up without charges and detained indefinitely as during the Dark Ages, when government was unaccountable and no one had any rights. Only those with power were safe. In America today anyone not politically protected can be declared “associated with terrorism” and taken out by a Hellfire missile from a drone on the basis of a list of human targets drawn up by the president’s advisers. Due process, guaranteed by the US Constitution, no longer exists in the United States of America. Neither does the constitutional prohibition against the government spying on citizens without just cause and a court warrant. The First Amendment itself, whose importance was emphasized by our Founding Fathers by making it the First Amendment, is no longer protected by the corrupt Supreme Court. The Nine who comprise the Supreme Court, like the rest of the bought-and-paid-for-government, serve only the One Percent. Truth-tellers have become “an enemy of the state.” Whistleblowers are imprisoned despite their legal protection in US law.
The United States government has unaccountable power. Its power is not accountable to US statutory law, to international law, to the Congress, to the judiciary, to the American people, or to moral conscience. In the 21st century the war criminal US government has murdered, maimed, and dislocated millions of people based on lies and propaganda. Washington has destroyed seven countries in whole or part in order to enrich the American elite and comply with the neoconservative drive for US world hegemony.
Americans live in a propaganda-fabricated world in which a brutal police state is cloaked in nice words like “freedom and democracy.” “Freedom and democracy” is what Washington’s war machine brings with sanctions, bombs, no-fly zones, troops, and drones to countries that dare to cling to their independence from Washington’s hegemony.
Only two countries armed with strong military capability and nuclear weapons—Russia and China—stand between Washington and Washington’s goal of hegemony over the entire world.
If Russia or China falter, the …read more
Source: Paul Craig Roberts: "Americans Are A Conquered People"
All You Need To Know About The China Boom-Bust Cycle In One Chart
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By Tyler Durden
If anyone is still confused about the not so subtle dynamics between markets and monetary policy in China, or the country’s bipolar, and ever more frequent boom and bust cycles, you won’t be after seeing this chart from Socgen.
If still unclear, here is SocGen’s explanation:
Our economists expect China’s structural deceleration to continue over the coming years and it should thus remain a major source of uncertainty for commodity prices and equity markets alike. The recent recovery in Q1 16 was based on a sharp rebound in the property sector and significant credit injections.
This stimulus can only be temporary, as it increases debt in the system, keeps zombie companies alive, and defers reforms, at the cost of higher risk for financial stability in the future. Policymakers are aware of the risks coming from an overheating housing market and excessive debt build-up. As long as the recovery in the property keeps going, the economy could perform more or less in line with market expectations.
But, as Chinese authorities will eventually reduce credit easing, we expect the economy to return on its deceleration path in the coming quarters. The economy is thus likely to continue suffering from a series of mini boom-and-bust-cycles that will create repeated periods of volatility.
We just had a 3 months period of stability. Following the latest Yuan fixing released moments ago, which at 6.5693 was the lowest since March 2011, it sounds like we are about to have some volatility.
Source: All You Need To Know About The China Boom-Bust Cycle In One Chart
Eurogroup Agrees To Disburse €7.5BN To Greece Which Will Be Used To Repay Creditors
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By Tyler Durden
Once upon a time, markets trembled when Greek bailout implementation headlines were announced, which is what just happened if slightly ahead of our forecast schedule…
Kazimir Says Eurogroup Meeting Won’t Be an Easy One: translation – Greece will agree to everything some time around 4am
— zerohedge (@zerohedge) May 24, 2016
… and this time nobody cares. Well maybe the Greeks do, but by now even they realize that most of the “money” they receive will be used to repay creditors and especially the ECB, and they will see virtually none of it.
So, for them, or anyone else who cares, here are the key headlines and details as they come in. Few surprises from what had been leaked previously.
EUROGROUP MEETING ENDS, DEAL ALLOWS LOAN DISBURSEMENT
EU DIJSSELBLOEM: REACHED FULL STAFF LEVEL AGREEMENT ON GREECE
* * *
DIJSSELBLOEM: ESM TO APPROVE E10.3 BLN IN SEVERAL DISBURSEMENT
DIJSSELBLOEM: INSTITUTIONS TO HAVE FINAL CHECK ON LEGISLATION
DIJSSELBLOEM: NEED TO MAKE SURE GREECE STAYS ON FISCAL PATH
DIJSSELBLOEM: AGREED ON METHODOLOGY OF GREECE DEBT SUSTAINBLTY
DIJSSELBLOEM: ASKED ESM TO LOOK AT MEASURES IN DEBT REPAYMENTS
DIJSSELBLOEM: DEBT MID-LONG MEASURES INTO EFFECT JULY 2018
DIJSSELBLOEM: SMP, ANFA PROFITS ALSO PART OF DEBT DEAL
DIJSSELBLOEM: UNUSED ESM FUNDING COULD BE USED TO SWAP GR DEBT
DIJSSELBLOEM: AGREED ON MECHANISM FOR DEBT MEASURES IN L-TERM
DIJSSELBLOEM: IMPORTANT THAT IMF ON BOARD WITH GREECE
DIJSSELBLOEM: IMF TO RECOMMEND NEW PROGRAMME FOR GREECE BY YR END
DIJSSELBLOEM: BUT IMF WILL DECIDE ON NEW DEBT SUSTAINABILITY
DIJSSELBLOEM: DEBT RELIEF WILL BE DELIVERED AT END PROGRAM
* * *
MOSCOVICI: GREECE SHOWED POLITICAL RESPONSIBILITY
MOSCOVICI: ESSENTIAL THAT IMF REMAINS IN GREECE PROGRAM
MOSCOVICI: GREECE WILL BE ABLE TO REPAY STATE ARREARS NOW
* * *
REGLING: LOAN TRANCHES LINKED WITH GR PROGRAM IMPLEMENTATION
REGLING: FIRST GREECE LOAN TRANCHE OF E7.5 BLN IN JUNE
REGLING: SECOND LOAN TRANCHE TO BE GIVEN IN AUTUMN
REGLING: GREECE NOW TO IMPLEMENT OUTSTANDING PRIOR ACTIONS
* * *
According to Bloomberg, the First set of measures includes:
- Smoothening the EFSF repayment profile under the current weighted average maturity
- Use EFSF/ESM diversified funding strategy to reduce interest rate risk without incurring any additional costs for former program countries
- Waiver of the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek program for the year 2017
- “Decision on the smoothening of the EFSF repayment profile and the reduction of interest rate risks should be taken as a matter of priority”
For the medium term, the Eurogroup expects to implement a possible second set of measures following the successful implementation of the ESM program:
- Abolish the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek program as of 2018
- Use of 2014 SMP profits from the ESM segregated account and the restoration of the transfer of ANFA and SMP profits to Greece (as of budget year 2017) to the ESM segregated account as an ESM internal buffer to reduce future gross financing needs.
- Liability management – early partial repayment of existing official loans to Greece by utilizing unused resources within …read more
Source: Eurogroup Agrees To Disburse €7.5BN To Greece Which Will Be Used To Repay Creditors
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NBC exec: ‘Apprentice’ was key to Trump’s candidacy
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Donald Trump wouldn’t have overwhelmed the Republican presidential race without his exposure on “The Apprentice,” the NBC executive who currently oversees the show said on Tuesday. …read more
Source: NBC exec: ‘Apprentice’ was key to Trump’s candidacy
With The Lowest Volume Since Q1 2014, The Global M&A Boom May Be Over
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By Tyler Durden
Global M&A fell off a cliff in Q1, with volume levels not seen since Q1 2014. Dollar volume was down 49.2 percent sequentially, and 13.8 percent on a YoY basis.
According to Goldman Sachs, economic uncertainty, higher levels of volatility, and uncertainty around global central bank activity all played a role in the slowdown.
From Goldman's 10-Q
During the first quarter of 2016, our business activities were negatively impacted by a challenging operating environment characterized by economic uncertainty, higher levels of volatility and significant price pressure across both equity and fixed income markets, particularly during the first half of the quarter. These factors, as well as uncertainty around global central bank activity, impacted investor conviction and risk appetite for market-making activities, and industry-wide equity underwriting and mergers and acquisitions activity for investment banking activities.
The question is whether or not the slowdown is indicative of the M&A boom being over, or is it just a temporary hiccup. Using Goldman's rationale, the boom may just be over.
Economic uncertainty abounds after the US posted a Q1 GDP of dismal .5%, and central bankers are as confused as they ever were, with planners unable to come to a consensus on who can intervene in the markets, or when, and whether or not it's ok for the US to raise rates.
If the M&A boom is over, here are the banks that will be hardest hit by the slowdown
As the WSJ points out, banks such as Goldman Sachs and JP Morgan have diversified enough businesses where they can absorb some of the slowdown in M&A, but the smaller boutique firms such as Lazard, Evercore Partners, Greenhill, Moelis, and Houlihan Lokey don't have that luxury, and may see shares hit the hardest over the coming months because of it.
As the very same conditions persist throughout the second quarter that drove such a severe slowdown in the first quarter, it's reasonable to expect that the M&A boom may have just hit the wall.
Source: With The Lowest Volume Since Q1 2014, The Global M&A Boom May Be Over
Why China Is Being Flooded With Oil: Billions In Underwater OPEC Loans Repayable In Crude
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By Tyler Durden
When the price of oil was above $100, many of the less developed oil exporting OPEC members decided to capitalize on the high price and cash out by taking loans using the precious liquid as collateral very much the same way corporate CEOs use their inflated stock (thanks to buybacks they authorize) to issue loans against said stock. And why not: even if the price of oil were to drop, they could just pump more until the principal is repaid. However, few oil exporters anticipated such an acute oil plunge in such as short time span, which resulted in the value of the collateral tumbling by 70%, and now find themselves have to repay the original loan by remitting as much as three times more oil!
According to Reuters, this is precisely what happened in the years preceding the great 2014-2015 oil bust: “poorer oil-producing countries which took out loans to be repaid in oil when the price was higher are having to send three times as much to respect repayment schedules now prices have fallen.”
As a result, the finances of countries such as Angola, Venezuela, Nigeria and Iraq have been crippled, in the process creating further division within the Organization of the Petroleum Exporting Countries.
But while these already poor and corrupt OPEC nations were the biggest losers, one country was a huge winner, the country that provided the billions in virtually risk-free, oil-collateralized loans to any country that requested them. China. The same China which has once again proven smart enough to not demand repayment in fiat but in physical commodities, be they oil, copper or gold.
Take Angola for example: Africa’s largest oil producer has borrowed as much as $25 billion from China since 2010, including about $5 billion last December, which according to Reuters forced its state oil firm to channel almost its entire oil output toward debt repayments this year.
Or Venezuela: ever since 2007, China, which has become Venezuela’s top financier via an oil-for-loans program, has funneled an amazing $50 billion into the Chavez first and then Maduro regimes, in exchange for repayment in crude and fuel, including a $5 billion deal last September. While details of the loans have not been made public, analysts from Barclays estimate Caracas owes $7 billion to Beijing this year and needs nearly 800,000 bpd to meet payments, up from 230,000 bpd when oil traded at $100 per barrel.
Oil pumps are seen in Lake Maracaibo, in Venezuela
Ecuador, one of OPEC’s smallest member countries, borrowed up to $8 billion from Chinese and Thai firms, repayable with oil, between 2009 and 2015, according to the national oil company
Many other countries have borrowed money from China (and others such as producers Exxon, Shell and Lukoil, as well as traders Vitol and Trafigura) and promised to repay in oil included Nigeria, Iraq, Venezuela and others.
Fast forward to today when Angola, Nigeria, Iraq, Venezuela and Kurdistan are due to repay a total of between $30 billion and $50 …read more
Source: Why China Is Being Flooded With Oil: Billions In Underwater OPEC Loans Repayable In Crude
Super Bowl 51 tickets go on sale in June
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Ticket packages for Super Bowl 51 will be available through On Location beginning in June. …read more
Source: Super Bowl 51 tickets go on sale in June
Gold Drops, Oil Pops As Another Volumeless Buying-Frenzy Strikes Stocks
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By Tyler Durden
We begin today's end of day catch up with a report from The Onion that seemed highly appropriate:
NEW YORK – According to a brief but conclusive report released Monday, nobody fucking cares.
“Doesn’t fucking matter,” read the report in part, which went on to inform readers that no one gives two shits, so fuck it. “Seriously. Stop wasting everyone’s goddamn time.”
The report further urged those who still hadn’t shut up about it to quit acting like fucking idiots and just give it a rest, for Christ’s sake.
As following the overnight strength – on a Brexit poll of 1000 people that suggested Brexit fears overblown – the ridiculous beat in new home sales (at a record high price)…
…sparked sheer panic bids in homebuilder stocks.. and pretty much everything else. Dow Futures soared 300 points off the overnight lows… (we saw this manic pattern last week)
Trannies were the laggard on the day but bounced off unch for the week, Small Caps are leading…
Futures show the overnight exuberance…
For context today's spikes in stocks – the biggest since March – were very technical – all breaking their 50-day moving-averages…
As the short squeeze comes on again…US Open and EU Close sparked big squeezes in “most shorted” stocks – doubling the performance of the market…biggest 3-day short-squeeze in 6 weeks.
Homebuilders were best (with Utes lagging)…
Today's exuberance lifted The S&P and Small Caps into the green for May…
VIX was jammed down to a 14 handle again…
Treasury yields were far less exuberant than stocks…
But USDJPY 110 was in charge of the day…
Treasury yields all rose on the day but the long-end underperformed (10Y +3bps, 2Y unch) – once again the EU close pivoted the trend from selling bonds to buying them…
The USD Index rose once again (9th day in a row) today (as JPY weakness offset GBP strength – more positive polls) and EUR sunk…
Commodities were very mixed today with copper and crude soaring and PMs dumping… Crude's 2016 highs…
Charts: Bloomberg
Source: Gold Drops, Oil Pops As Another Volumeless Buying-Frenzy Strikes Stocks
























