Gross Lambasts Central Bank Policies, says Investors Are ‘Mongrel Dogs’ in Search For ‘Tidbits’

In his latest treastise against negative rate policies, B. Gross likened the environment to a Vegas casino — as it pertains to credit and how it perverts everything.

“Our financial markets have become a Vegas/Macau/Monte Carlo casino, wagering that an unlimited supply of credit generated by central banks can successfully reflate global economies and reinvigorate nominal GDP growth to lower but acceptable norms in today’s highly levered world,” Gross said in his latest Investment Outlook titled “Doubling Down.”

“At some point investors – leery and indeed weary of receiving negative or near zero returns on their money, may at the margin desert the standard financial complex, for higher returning or better yet, less risky alternatives,” Gross said.

“A commonsensical observation made by yours truly and increasing numbers of economists, Fed members, and corporate CEOs (Jamie Dimon amongst them) would be that low/negative yields erode and in some cases destroy historical business models which foster savings/investment and ultimately economic growth,” Gross said.

He added: “Our argument is that NIMs (net interest margins) for banks, and the solvency of insurance companies and pension funds with long dated and underfunded liabilities, have been negatively affected and that ultimately, the continuation of current monetary policies will lead to capital destruction as opposed to capital creation.”

All told, Gross said central bankers have fostered a casino-like atmosphere that present “a Hobson’s Choice, or perhaps a more damaging Sophie’s Choice of participating (or not) in markets previously beyond prior imagination. Investors/savers are now scrappin’ like mongrel dogs for tidbits of return at the zero bound. This cannot end well.”

Similarly, I can relate to good olde Bill’s prognostications, as  I’ve been predicting a fleeting doom since December of last year. The prevailing wisdom had been that central banks had overstepped their boundaries and their schemes, once laid bare, would result in massive FX dislocations — which in turn would cause EM to implode and contagion spread. This occurred in early 2016, but was halted after the Fed indicated they were just kidding about hiking rates and markets took solace in easy monetary policy.

Bull markets are difficult to stop and a fool’s errand to short with regularity. If you’re comfortable applying risk to your portfolios and have proverbial lines in the sand from which you can reduce exposure to markets, in the event of a pullback, go crazy and buy stocks. I’ve said this here on numerous occasions. Personally, I’ve been investing for over 25 years in markets, more active than anyone I’ve ever known. I’ve played the craziest tapes and made plenty of money doing it. I’m not doing that in 2016, after retiring from money management and deciding to only trade Exodus signals.

The cause that I’ve found a spirited purpose in is to expose the corrupt nature of the central banks and policy makers — using iBC as my bullhorn. I’ve found there’s a greater purpose to life than simply nailing the next trade. Maybe my philosophy on life will change in the future. But for now, that’s how I feel.

In what can only be described as the greatest achievement in internet trolling history, Wikileaks founder, Julian Assange, fucked with the world — luring them into a press conference for months — only to say ‘we don’t release documents at 3am.’

In other words, he’s not going to release any damning information before the elections.

In this Wikileaks show of sheer and utter wasteful rot, several soft spoken ladies and men carried on for a few hours — speaking to the limitless virtues of Wikileaks, in addition to the unfortunate fact that Julian has been stowed away in an Ecuadorian embassy for five years eating ceviche, in an effort to escape the long, jagged, arm of the US lawman.

Consequently, we’ve all been rickrolled. It’s time for us to go back to Hillary on the verge of brain collapse and her spine cracking in half due to some mysterious ailment that is sure to buoy the Trump truck all the way to the fucking White House.

It’d be so god damned funny if I weren’t so god damned tired.

I’ll be providing updates as the information gets filtered and processed through the appropriate channels. In the meantime, BEHOLD and watch the event live streamed here.

The joys of saber rattling the Russian Bear are finally bearing fruit. Whilst our diplomats and professional corporate owned politicians drink themselves to sleep tonight, Russia is moving in SA-23 Gladiator anti-missile, anti-aircraft systems into Syria — according to Fox News.

Russia has deployed an advanced anti-missile system to Syria for the first time, three US officials tell Fox News, the latest indication that Moscow continues to ramp up its military operations in Syria in support of President Bashar al-Assad.

While Moscow’s motives are not certain, officials say the new weapon system could potentially counter any American cruise missile attack in Syria.

Components of the SA-23 Gladiator anti-missile and anti-aircraft system, which has a range of roughly 150 miles, arrived over the weekend “on the docks” of a Russian naval base along Syria’s Mediterranean coastal city of Tartus, two US officials said.

It is the first time Russia has deployed the SA-23 system outside its borders, according to one Western official citing a recent intelligence assessment. The missiles and associated components are still in their crates and are not yet operational, according to the officials.

The U.S. intelligence community has been observing the shipment of the SA-23 inside Russia in recent weeks, according to one official.

When asked about the purpose of the Russian defense shield being installed in Syria, one anonymous fuckhead of a US official said “Nusra doesn’t have an air force do they?”

Let’s reiterate, for posterities sake, what exactly is going on in Syria. Russia is backing its long term ally, Assad. While being a dictator and hard man, Assad was a secular leader who didn’t have an ax to grind with those unwilling to follow the insane edicts of Islam. We are literally backing ISIS in Syria. At first, there was some ambiguity to it. No one quite understood why we weren’t bombing their oil tankers and American humvees into the dirt — until Russia entered the arena and started to do it for us. Since then, our relations with Russia have soured and it’s now revealed that the so called ‘rebels’ we back in Syria are merging with Al-Nusra — which is Al Qaeda aka ISIS. It gets real confusing, as America plays 3 card monte with the world, moving around these terrorist groups like seashells.

What’s important to know is that we seem willing to risk hundreds of millions of American lives in order to support a terrorist linked rebel group in Syria.

Explain that.

Krauthammer’s take.

In what has been advertised to be the most important documents since the Da Vinci code, Julian Assange and his comrades promise to inflict irreversible damage to the global elite establishment crony capitalist corporate whore of a campaign, Hillary R. Clinton.

There is widespread panic amongst the establishment owned media gimps, men prancing about on the teevee (John Harwood and Jake Tapper come to mind), trying to discuss Donald J. Trump’s glorious 1995 tax returns, which showed that he had a loss of $995 million to carry over through eternity. What’s most impressive about the $995 loss isn’t the loss itself. It’s the fact that he came all the way back, like Batman stuck in that fucking hole of a prison, finally escaping to defeat and publicly shame the corporate hack, Bane.

At any rate, Assange is going to release the documents tonight, 4am est — which will come by webinar — in order to effectively school all of the catamites traversing Twitter in search of negative D.J. Trump memes.

Tomorrow's press conf in Berlin proceeds. London speech by Assange has been moved to Berlin due to specific information. #wikileaks10

— WikiLeaks (@wikileaks) October 3, 2016

It is widely believed, upon the release of said documents, H.R. Clinton will resign from the campaign and turn herself in to live out the rest of her days in prison.

This is a must read for anyone who is truly interested to see how deep the rabbit hole goes, as it pertains to US sponsored propaganda.

The Pentagon gave a controversial UK PR firm over half a billion dollars to run a top secret propaganda programme in Iraq, the Bureau of Investigative Journalism can reveal.

Bell Pottinger’s output included short TV segments made in the style of Arabic news networks and fake insurgent videos which could be used to track the people who watched them, according to a former employee.

The agency’s staff worked alongside high-ranking US military officers in their Baghdad Camp Victory headquarters as the insurgency raged outside.

Bell Pottinger’s former chairman Lord Tim Bell confirmed to the Sunday Times, which worked with the Bureau on this story, that his firm had worked on a “covert” military operation “covered by various secrecy agreements.”

Bell Pottinger reported to the Pentagon, the CIA and the National Security Council on its work in Iraq, he said.

Unbelievably, the U.S. paid upwards of $500m to a Brtish firm, in order to produce propaganda. Perhaps this was a small concession to the UK for their ardent support of our efforts in Iraq and throughout the middle east.

The third and most sensitive programme described by Wells was the production of fake al Qaeda propaganda films. He told the Bureau how the videos were made. He was given precise instructions: “We need to make this style of video and we’ve got to use al Qaeda’s footage,” he was told. “We need it to be 10 minutes long, and it needs to be in this file format, and we need to encode it in this manner.

The American origins of the news items were sometimes kept hidden. In 2005, revelations that PR contractor the Lincoln Group had helped the Pentagon place articles in Iraqi newspapers – sometimes presented as unbiased news – led to a DoD investigation.

Here is an interview with Bell Pottinger, regarding his work there.

A firsthand account of Bell Pottinger’s top secret work in Iraq from The Bureau on Vimeo.

I wonder if the Pentagon is softly suggesting some articles to be placed at the NY Times or Washington Post? Nah, they wouldn’t impune on our great experiment in democracy.

Remember those wonderful Jihad John beheadings, acted out by an English citizen? What wonderful HD footage that was. I always found the cinematography to be first rate, in spite of its dreadful content.

The U.S. is slowly barreling towards a conflict with the inherently evil Russian empire, so eloquently depicted in a variety of children’s cartoons. After Russia announced they were backing out of a plutonium deal, the White House escalated the schism and decided to totally break off diplomatic relations over the war torn Syria.

“This is not a decision that was taken lightly,” State Department spokesman John Kirby said in a statement. “Unfortunately, Russia failed to live up to its own commitments … and was also either unwilling or unable to ensure Syrian regime adherence to the arrangements to which Moscow agreed.”

“Rather, Russia and the Syrian regime have chosen to pursue a military course, inconsistent with the Cessation of Hostilities, as demonstrated by their intensified attacks against civilian areas, targeting of critical infrastructure such as hospitals, and preventing humanitarian aid from reaching civilians in need, including through the September 19 attack on a humanitarian aid convoy,” he said.

White House spokesman Josh Earnest said patience had run out with Russia.

“What is clear is that there is nothing more for the United States and Russia to talk about with regard to stopping the ongoing violence in Syria and that is unfortunate,” he told reporters.

Bear in mind, Secretary of State, John Kerry, has advocated for a no-fly zone over Syria, which would effectively checkmate Russia into permitting Assad being overrun by U.S. backed terrorists in the country. Moreover, there is leaked audio of John Kerry saying that he asked the Obama administration to put troops on the ground to fight the Assad regime — which would up the ante and pave the way towards full scale war with Russia.

“I think you’re looking at three people, four people in the administration. I lost the argument. I’ve argued for the use of force. I’m the guy who stood up and announced that we’re going to attack Assad for the use of weapons.”

Kerry is on the record saying a Syrian ‘safe zone’ aka ‘nation building programme’ would entail 15-30k troops on the ground.

“All this talk about safe zones does not go through the process of what it really means,” Kerry said.

“Our Pentagon estimates that to have a true safe zone in the north of the country you may have upwards of fifteen to thirty thousand troops. Now are we ready to authorize that? Are we ready to put them on the ground?”

Fucking neocons.

Full disclosure, I am long gold and gold miners and believe both will do fine, especially when revealed the Fed will never, ever, ever raise interest rates.

It’s amusing to see gold miners off by 2.5%, in a very beat me about the face and chin sort of way, at the onset of what has been the single worst month to be long the yellow metal.

Observe the seasonality stats, courtesy of Exodus.

For the past month, the sector has been under fire — off by more than 6.5%. The sell off began when rumors of an imminent Fed hike started to circulate and the sector has been dead money since then. As the technicals devolve, more bears pile into the trade — making it a scary hold for hot money seekers.

But if you took a step back pal (extra Les Grossman), and looked at the technicals of the industry, you might think twice about following all of the other assholes out of the sector and into overbought denizens of depravity, such as semis and oil.

Note that the chart above represents Exodus‘ algorithmic scores for all stocks in the gold industry, encompassing both technicals and fundamentals. In other words, whenever it gets this low, the sector bounces hard off the lows.

In order to best take advantage of the rigged bond yields in Europe, much to the delight of the desperate bond buyers at the ECB, Italy, Belgium, Ireland and Spain will join France at the vanguard in launching  an enormous amount of issuance — wonderfully and splendidly unveiling the 50 year ‘super-long term’ bond for all of the world to ‘enjoy’.

It’s worth noting, both Japan and S. Korea are concocting similar schemes, in order to best take advantage of record lows yields.

The Rome-based Treasury announced the issuance “after a thorough market analysis,” it said in a statement on Monday.

Perhaps said analysis had something to do with this unfortunate fact?

Just to get an idea what a 50 yr bond might yield for those lucky enough to partake, here are the yields for the 30yr bonds for the aforementioned countries.

Italy 2.27%, Belgium (20yr) 0.63%, France (50 yr) 1.37%, Ireland (15yr) 0.71%, Spain 2.02%

My best guess, a truly heinous Italian 50yr bond will yield anywhere from 2.25% to 2.5%.

The Italian job will be lead by IMI S.p.A., BNP Paribas, Goldman Ballsachs, HSBC, JP Morgan and Unicredit.

In spite of the fact that Deutsche Bank is not Lehman and the fear mongering of last week being nothing more than a hedge fund conspiracy theory concocted by assholes, there are some very staid individuals who have questions regarding Deutsche Bank’s $50 FUCKING TRILLION in level 3 assets. For those of you who partook in the 2008 crisis knows that whenever level 3 assets get called into question, there is a lot more fuckery to come — just around the bend.

Charles Peabody tries to make sense of the whole mess, but simply cannot — since the big, dumb, German bank’s derivative book is wrapped in a wreath of black smoke — surrounded by bald headed, big mouthed, body guards (extra Cramer).

Always remember, Deutsche Bank isn’t Lehman. Ergo, everything will be fine.