U.S. Trade Deficit Hits a 5 Month Low

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“The trade deficit in the U.S. unexpectedly narrowed in June, reflecting the biggest drop in imports in a year as the economy moved closer to energy independence.

The gap shrank 7 percent to $41.5 billion, the smallest since January, from May’s $44.7 billion, Commerce Department figures showed today in Washington. The median forecast in a Bloomberg survey of 66 economists called for a deficit of $44.8 billion. The drop in purchases of foreign goods included declines in autos and cellular phones, while petroleum imports were the lowest in more than three years.

Demand for goods made overseas will probably rebound in coming months, helped by growinghousehold spending and business investment. Exports were little changed at a record, a sign markets overseas will represent less growth for American factories as Europe’s economy struggles to pick up and geopolitical tensions mount.

“Imports are going to bounce back because of the strength of the U.S. consumer,” said Jay Bryson, global economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “The U.S. is doing better than most advanced countries.” While exports also may rise, “overall, trade won’t add a whole heck of a lot to economic growth,” he said.

Stock-index futures held earlier losses after the report. The contract on the Standard & Poor’s 500 Index maturing in September dropped 0.4 percent to 1,905 at 8:48 a.m. in New York as a buildup of Russian troops on the Ukrainian border intensified investor concern that the crisis will escalate.

Bloomberg survey estimates ranged from trade deficits of $41 billion to $46.7 billion. The Commerce Department initially reported a $44.4 billion shortfall for May.

Fewer Imports…”

Full article

Finding Alternative Exotic Investments

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” “I am a musician, and the monkey is a businessman. He doesn’t tell me what to play, and I don’t tell him what to do with his money.”

David Bonderman, co-founder of private-equity firm TPG Capital, is doing his best French accent for the Beverly Hills crowd, parroting a blind organ grinder confronted by Peter Sellers’s Inspector Clouseau character in the 1975 film “The Return of the Pink Panther.” The audience, gathered in April for the Milken Institute Global Conference, erupts in laughter. So does Leon Black, founder of Apollo Global Management (APO) LLC, who is seated next to Bonderman.

Bonderman’s message is clear, Bloomberg Markets magazine will report in its September issue. Like the film’s monkey and organ grinder, alternative-asset managers and their investors depend on each other. ….”

Full article

DOW Theory Shows Bulls are Firmly in Control

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“CHAPEL HILL, N.C. (MarketWatch) — The Dow Theory—the oldest stock-market timing system in widespread use — remains bullish.

The Dow Theory, for you history buffs, was introduced gradually over the first three decades of the 20th century in editorials in the Wall Street Journal by its then editor, William Peter Hamilton. The three preconditions for a sell signal that he set out are:

  1. •Step #1: Both the Dow Jones Industrial Average and the Dow Jones Transportation Average must undergo a “significant” correction from joint new highs.
  2. •Step #2: In their subsequent “significant” rally attempt following that correction, either one or both of these Dow averages must fail to rise above their pre-correction highs.
  3. •Step #3: Both averages must then drop below their respective correction lows

To be sure, though these steps might appear to be clear enough, they still leave room for interpretation. Among the three Dow Theorists I follow, for example, there is disagreement about whether step #1 has even been satisfied by recent market action.

That’s because it’s not clear whether the stock market’s recent decline qualifies as “significant.” It sure felt significant last week, especially on Thursday when the Dow fell by more than 300 points.

But the rule of thumb that many Dow Theorists employ is that, to be “significant,” the correction needs to last at least three weeks and retrace at least one-third of the previous move.

That would rule out what we’ve seen since the July market highs, of course; that decline so far has lasted just eight trading sessions for the S&P 500 SPX -0.32% and 13 for the Dow Jones Industrial Average DJIA -0.28% — and led to losses of less than 4% for each index.

On that interpretation, therefore, not even the first of this three-step process has been triggered. Richard Moroney, editor of Dow Theory Forecasts, is in this camp, writing that the Dow Theory is “unambiguously bullish.”

Jack Schannep is also bullish, though he does think step #1 has been satisfied. That’s because he believes that, in order for the Dow Theory to be relevant to the 21st century, it must be modified to acknowledge that market movements — even significant ones — occur more quickly than they did when Hamilton introduced his theory a century ago. And Schannep’s modified version of step #1 has been triggered; he is therefore focusing on the second of the three-step process for a sell signal.

Reasons for optimism….”

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S&P Agrees with the IMF, Bifurcation Hurting the Economic Growth Cycle

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“Economists have long argued that a rising wealth gap has complicated the U.S. rebound from the Great Recession.

Now, an analysis by the rating agency Standard & Poor’s lends its weight to the argument: The widening gap between the wealthiest Americans and everyone else has made the economy more prone to boom-bust cycles and slowed the 5-year-old recovery from the recession.

Economic disparities appear to be reaching extremes that “need to be watched because they’re damaging to growth,” said Beth Ann Bovino, chief U.S. economist at S&P.

Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station's Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act, July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.

Tom Williams | CQ Roll Call | Getty Images
Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station’s Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act, July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.

The rising concentration of income among the top 1 percent of earners has contributed to S&P’s cutting its growth estimates for the economy. In part because of the disparity, it estimates that the economy will grow at a 2.5 percent annual pace in the next decade, down from a forecast five years ago of a 2.8 percent rate.

The S&P report advises against using the tax code to try to narrow the gap. Instead, it suggests that greater access to education would help ease wealth disparities….”

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Curiously Strange Evidence Surfaces on Flight MH17

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“The tragedy of Malaysian MH 017 continues to elude any light of clarity being cast over it.

The flight recorders are in England and are evaluated. What can come of it? Maybe more than you would assume.

Especially the voice recorder will be interesting when you look at the picture of a cockpit fragment. As an expert in aviation I closely looked at the images of the wreckage that are circulating on the Internet.

Peter Haisenko in Cockpit of Condor DC 10

First, I was amazed at how few photos can be found from the wreckage with Google. All are in low resolution, except one: The fragment of the cockpit below the window on the pilots side. This image, however, is shocking. In Washington, you can now hear views expressed of a “potentially tragic error / accident” regarding MH 017. Given this particular cockpit image it does not surprise me at all.

Entry and exit impact holes of projectiles in the cockpit area

Source for all photos: Internet

I recommend to click on the little picture to the left. You can download this photo as a PDF in good resolution. This is necessary, because that will allow you understand what I am describing here. The facts speak clear and loud and are beyond the realm of speculation: The cockpit shows traces of shelling! You can see the entry and exit holes. The edge of a portion of the holes is bent inwards. These are the smaller holes, round and clean, showing the entry points most likely that of a 30 millimeter caliber projectile. The edge of the other, the larger and slightly frayed exit holes showing shreds of metal pointing produced by the same caliber projectiles. Moreover, it is evident that at these exit holes of the outer layer of the double aluminum reinforced structure are shredded or bent – outwardly! Furthermore, minor cuts can be seen, all bent outward, which indicate that shrapnel had forcefully exited through the outer skin from the inside of the cockpit. The open rivets are are also bent outward.

In sifting through the available images one thing stands out: All wreckage of the sections behind the cockpit are largely intact, except for the fact that only fragments of the aircraft remained . Only the cockpit part shows these peculiar marks of destruction. This leaves the examiner with an important clue. This aircraft was not hit by a missile in the central portion. The destruction is limited to the cockpit area. Now you have to factor in that this part is constructed of specially reinforced material. This is on account of the nose of any aircraft having to withstand the impact of a large bird at high speeds. You can see in the photo, that in this area significantly stronger aluminum alloys were being installed than in the remainder of the outer skin of the fuselage. One remembers the crash of Pan Am over Lockerbie. It was a large segment of the cockpit that due to the special architecture survived the crash in one piece. In the case of flight MH 017 it becomes abundantly clear that there also an explosion took place inside the aircraft.

Tank destroying mix of ammunition

Bullet holes in the outer skin

So what could have happened? Russia recently published radar recordings, that confirm at least one Ukrainian SU 25 in close proximity to MH 017. This corresponds with the statement of the now missing Spanish controller ‘Carlos’ that has seen two Ukrainian fighter aircraft in the immediate vicinity of MH 017. If we now consider the armament of a typical SU 25 we learn this: It is equipped with a double-barreled 30-mm gun, type GSh-302 / AO-17A, equipped with: a 250 round magazine of anti-tank incendiary shells and splinter-explosive shells (dum-dum), arranged in alternating order. The cockpit of the MH 017 has evidently been fired at from both sides: the entry and exit holes are found on the same fragment of it’s cockpit segment!

Now just consider what happens when a series of anti-tank incendiary shells and splinter-explosive shells hit the cockpit. These are after all designed to destroy a modern tank. The anti-tank incendiary shells partially traversed the cockpit and exited on the other side in a slightly deformed shape. (Aviation forensic experts could possibly find them on the ground presumably controlled by the Kiev Ukrainian military; the translator). After all, their impact is designed to penetrate the solid armor of a tank. Also, the splinter-explosive shells will, due to their numerous impacts too cause massive explosions inside the cockpit, since they are designed to do this. Given the rapid firing sequence of the GSh-302 cannon, it will cause a rapid succession of explosions within the cockpit area in a very short time. Remeber each of these is sufficient to destroy a tank.

What “mistake” was actually being committed – and by whom?….”

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Corporate Debt Ballons, Should You Be Concerned ?

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“It’s not just the stock market we have to worry about. It’s also the bond market.

For the past five years, U.S. corporations have been living in a financial paradise. Interest rates have been on the floor. Wages have been flat. Companies have been able to lay off workers and slash costs. Profits have skyrocketed to record levels. And they’ve spent almost nothing on new capital equipment, either.

And what effect has this had?

In 2007, at the peak of the last credit mania, U.S. nonfinancial corporations owed $7.2 trillion according to data compiled by the U.S. Federal Reserve.

Today? After years of this bonanza, those debts have tumbled all the way down to… er… $9.6 trillion.

All that talk you hear about how corporate balance sheets are in great shape is a bunch of hooey.

Corporations borrowed $993 billion just in the first quarter of this year. Corporate debts have actually doubled since 1999.

Yes, during this time corporate assets have also gone up. Companies have built up some cash reserves (mostly offshore, to avoid the taxman). But the overall picture is alarming.

Today U.S. non-financial corporations are carrying debts equal to 50% of their actual net worth. That is near record levels, and far above historic averages.

In 1950 companies barely owed 20% of their net worth. In the early 1980s it was a little over 25%. Even in 2007 it was below 40%.

And this, note, is after years of record profits. Companies have used their profits, and their borrowings, to drive up their own stock prices.

The picture isn’t much better when you look at U.S. households. In a nutshell, a lot of households have reduced their debts — often by defaulting on their mortgages. But at the same time households have been ramping up more debts — in student loans, in car loans, and on their credit cards. In the first quarter of this year households actually increased their debts by $267 billion — even after you count an $84 billion reduction in mortgage debt. Total debts, after tumbling in the early years of the recession, stopped falling in 2012, and have actually been rising again since early last year….”

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Passing Regulations Afforded the Color of Law

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“The Department of Homeland Security (DHS) acts everyday more like an autocratic government endowed with superpowers beyond anything every imagined by the men who framed our form of government. Consider this disturbing report filed by the Washington Times on August 1 about a DHS raid on a private residence in South Carolina to seize a car that couldn’t pass Environmental Protection Agency (EPA) muster.

Jennifer Brinkley said she saw a line of law enforcement vehicles approaching her home and wondered what was wrong, the local WBTV reported. Homeland Security agents then went to her 1985 Land Rover Defender and lifted the hood.

“They popped up the hood and looked at the Vehicle Identification Number and compared it with a piece of paper and then took the car with them,” she said, WBTV reported.

She told Fox News that she was told the agents seized the vehicle because they thought it violated the Clean Air Act — though at the time, they weren’t completely sure. She also said her vehicle was just one of 40 that feds seized in various locations that same day for the same reason.

Ms. Brinkley told Fox News that she has no idea where the vehicle is now and that feds won’t tell her.

“I’m sad because I owned the car. It’s just an iconic car. I’m in disbelief … and surprised that somebody can come in and take your property,” she told Fox News. “It’s scary, it’s scary when it happens to you.”

What’s even scarier is that it is happening more and more. The EPA, DHS, the U.S. Forest Service, the Bureau of Land Management (BLM), etc. are all accustomed to unaccountably passing regulations afforded the color of law, enforcing those regulations, adjudicating challenges to those regulations in front of “judges” appointment by the commissioners of those agencies, and imposing burdensome fines on anyone foolish enough to defy these petty tyrants.

Charles Pinto Duclos, a French writer and historian contemporary with the Founders, wrote:

We see on the theater of the world a certain number of scenes which succeed each other in endless repetition: where we see the same faults followed regularly by the same misfortunes, we may reasonably think that if we could have known the first we might have avoided the others. The past should enlighten us on the future: knowledge of history is no more than an anticipated experience.

In the case of these federal agencies terrorizing citizens….”

Full article

European Markets and U.S. Futures Celebrate the Bailout of Portugal’s Largest Bank

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“(Reuters) – European stocks rose on Monday and bond yields fell on a banking sector rebound after Portugal prevented the collapse of one of its biggest lenders and shares in the continent’s largest bank jumped in the wake of its latest earnings report.

This dovetailed with easing fears of higher U.S. interest rates following Friday’s U.S. employment report, and eclipsed growing geopolitical concerns over the Middle East and the effect of Western trade sanctions on Russia.

Lisbon on Sunday announced a near 5 billion-euro rescue of the country’s largest listed bank, Banco Espirito Santo, preventing it from collapsing and potentially destabilizing the banking sector regionwide.

“The market’s initial reaction is that it’s pretty reassuring to see Portugal moving quickly to rescue BES. Overall it eases systemic fears that had resurfaced last week,” Saxo Bank sales trader Andrea Tueni said.

On Monday, HSBC reported a larger-than-expected drop in profits, but investors looked instead to the bank’s attractive dividend yield and scooped up the shares, lifting them to a three-month high….”

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Documentary: Earthlings

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If you watch this from begining to end you will come to know fully what willful ignorance means.

There will be no mercy from your maker.

Cheers on your weekend!

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209k Jobs Added in July, Unemployment Rate Rises to 6.2%

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WASHINGTON—Hiring by U.S. employers slowed in July but remained robust with broad-based payroll gains, evidence of continued strength in the labor market and the broader economy.

Nonfarm employment rose by a seasonally adjusted 209,000 last month, the Labor Department said Friday.

The unemployment rate, obtained via a separate survey of households, ticked up to a seasonally adjusted 6.2% in July from 6.1% in June. The jobless rate has fallen 1.1 percentage points since July 2013, when it was 7.3%.

Economists surveyed by The Wall Street Journal had expected payrolls to rise by a more robust 230,000 and the jobless rate to remain at 6.1%.

Payrolls rose by 298,000 in June, revised up from an earlier estimate of 288,000, and May’s gain was revised up to 229,000 from an earlier estimate of 224,000. Payroll gains have averaged 245,000 over the past three months, compared with an average of 209,000 in the 12 months ended in June.

July’s gain extended a streak that has seen nonfarm employers add 200,000 or more jobs in six consecutive months for the first time since 1997.

The U.S. economy stumbled in the wintry first quarter as gross domestic product-—the broadest measure of output across the economy—contracted at a 2.1% seasonally adjusted annual rate. But growth rebounded in the second quarter, with GDP growing at a 4% pace as companies continued to hire workers and the jobless rate declined at a rapid pace.

The Federal Reserve on Wednesday acknowledged improvement in the labor market. But its policy statement warned that “a range of labor market indicators suggests that there remains significant underutilization of labor resources,” and that “a highly accommodative stance of monetary policy remains appropriate” given the state of the economy.

The Fed has kept short-term interest rates near zero since December 2008 to bolster the U.S. economy through a financial crisis, a deep recession and a lackluster recovery. The central bank now is winding down its bond-buying program and officials expect to begin raising rates sometime next year, though Chairwoman Janet Yellen in mid-July said that rate hikes “likely would occur sooner and be more rapid than currently envisioned” if the labor market “continues to improve more quickly than anticipated.”

In July, hiring was broad-based. Payrolls rose in the professional and business services, manufacturing, retail, construction and public sectors….”

Full report

How Low Do the Markets Go ?

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Point wise, today did not feel like a good day.

Volume wise, we seem to have nothing to worry about.

The DOW looks worse than the S&P partly due to the fact we have reached the level where the year began.

sc (1)

The next key level to watch is 1905ish on the S&P. Below that there is a lot of support at 1850ish S&P.

RSI, MACD, & Williams all indicate we have some more room to fall, but i would be surprised if we fall much further. I would bet on a intra day test of S&P 1905 and then some type of reversal.

If we have a stellar jobs report tomorrow then expect the market to fall a bit as the pundits of spin are creating fear over the fed rasing rates sooner than later due to some inflation and improving labor conditions.

Let’s face it, the employment scenario for many, many, many citizens is still terrible.

Also the smart money knows that off balance sheet losses for the big banks is still a major problem; so ZIRP should be in force and there should be no reason to fret about rates moving higher sooner over later.

A worst case scenario would be to see some heavy volume taking the S&P down to the 1815-1830 level. Chances are we do not see this level as the market has that teflon resilience in play.

To be safe, I’m taking half my money off the table hoping the S&P heads lower to give me a good buying opportunity. Luckily, i’m up around 42% for the year so taking some profits would not be a bad thing. If i do not get the buying opportunity i’m looking for then i get to redeploy funds into more issues creating more risk tolerance in a slightly volatile sketchy market.

May the markets be on your side.

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House Clears Way for Lawsuit Against Obama

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“House Republicans voted to proceed with a lawsuit against President Obama on Wednesday, saying that his executive actions are so extreme that they violate the Constitution.

The nearly party-line vote — all Democrats voted against it, and all but five Republicans voted for it — further agitated an already polarized climate on Capitol Hill as both parties used the pending suit to try to rally support ahead of the November elections.

Halfway across the continent, Obama almost gloated at the prospect of being sued.

“They’re going to sue me for taking executive actions to help people. So they’re mad I’m doing my job,” Obama said in an economics speech in Kansas City, Mo. “And by the way, I’ve told them I’d be happy to do it with you. The only reason I’m doing it on my own is because you’re not doing anything,” he said of Congress.

The clash came a day before Congress is scheduled to begin a 51 / 2-week summer break and as must-pass bills on reshaping veterans’ health care and highway construction appeared headed for passage — while most everything else was not….”

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Should You Really Be Concerned About Derivatives ?

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“………SYSTEMIC RISK FROM CONTAGION

Apart from numerous background pressures, the system limps along deeply wounded and probably fatally so. When China wanted to exit the long-term USTreasurys, the USFed accommodated them. They launched Operation Twist without much clear explanation of its provisions. We are always led to trust the magic of their machinations. China actually transferred their long-term bond holdings to short-term holdings, in order to make possible their redemption at maturity, and soon, like before the implosion. The USFed accomplished the task by putting on an enormous swath of cleverly devised Int Rate Swaps, which in effect switched from LT bond to ST bond. There are a great many other types of derivatives, such as exotic swaps, and customized contracts.

The entire Euro Monetary Union has its foundation created upon swapped hidden debt into FOREX currencies, an illicit deed that to this day has not been resolved. The Maastricht Treaty was circumvented by means of heavy swap contracts, shifting debt onto currency obligations in the form of these derivative swaps. Many were the big investment banks eager to assist in the deception and illicit qualification process, and thus earn big fees. The nations of Italy and Spain, for instance, were able to qualify for the European Monetary Union by hiding their debt with the FOREX swaps. Prosecutions are laced all through the Deutsche Bank chambers here and now, the legal wheels of justice grinding slowly. Therefore, the Euro Currency has a phony fraudulent foundation, an illicit basis enabled by derivative abuse. The victim of the ongoing prosecution, if the USGovt chooses to impose yet more heavy fines, could be the German alliance. The Germans are ready to jump ship, away from the sinking USS Dollar.

Perhaps the ugliest derivative story is the IRS Tax secure stream contract very likely used by China as collateral, which is suspected by the Jackass to be the backend deal to secure a Gold Lease from China. It is related to the 1999 Most Favored Nation granted by US to China. The Chinese would receive gigantic direct foreign investment, and thus build an industrial base. The Wall Street criminal bankers would receive a vast hoard of gold bullion, leased from the Chinese Mao Era gold reserves. The Chinese distrusted the US bankers, after many past experiences, which might include several rafts of fake gold bars sent to Hong Kong banks by the Clinton-Rubin Admin. In the outcome, the Wall Street masters reneged on the gold lease, while the USEconomy entered a downward spiral of recession which accelerates downward. The Jackass suspects that the powerful recession made impossible the honoring of the IRS secure stream derivative contract held as collateral, forcing a national default. In the last few months, we see China busy securing US commercial property. The Chinese have taken control of the JPMorgan Chase headquarters in South Manhattan, the famed One Chase Plaza. In it is contained the largest private gold vault facility in the world. It has underground tunnels connected to the US Federal Reserve. Many are the rumors and suspicions that with the end of the Federal Reserve Act operational contract, following 100 years of hidden financial tyranny, that the Chinese might have taken over a strong interest in the Fed, maybe a controlling interest.

GOLD ON WHITE HORSE

The Western financial system is operating on fragile tenterhooks, on shaky pylons, on that same vaporous floating spinning illusory foundation. A few big banks have entered failure, like Banco Espirito Santo in Portugal. When big banks begin to fail, the belief has been, the risk of contagion will be the main focus. Since Lehman, the major Western banks have lashed themselves together for safety and security. They have done so with financial derivatives, the rope to connect them together. Thus no repeat of Lehman failure, a big financial firm failure to put the entire system at risk of breakdown. So the next failures will put the entire system at risk of collapse. This is the oft-described nuclear outcome, which has been brought upon by the overusage of derivatives. Their total in usage is somewhere between $700 trillion and $1.4 quadrillion, depending on the definition and the team doing the calculation. Claims of big reductions in derivative overall usage are a lie, since new derivatives are put on quickly. They offer short-term security but long-term systemic risk. The world faces a guaranteed systemic implosion caused by derivatives. Bank failures and contagion will lead to the widespread connected failures, and lost control by both governments and central banks to manage them. Gold will be the secure port during the stormy outcomes.

The derivative cost will be revealed as obscene, in high multiple $trillion suddenly. The public will ask questions like how we could have permitted the situation to go out of control. To be sure, derivatives assure the equivalent of a financial nuclear explosion. The answer to the question posed is that the Rubin Doctrine has been used after the Rubin thefts of the USGovt gold reserves at Fort Knox. The doctrine dictates the sacrifice of tomorrow for a few more todays. Well, tomorrow has arrived. The return to the Gold Standard is the answer, but the clean-up crews will be busy for a long time. The Gold Price will reach incredibly high levels when the derivative implosion occurs, which should occur when the East introduces a legitimate gold-backed new BRICS currency for trade settlement. The fallout will be tremendous, as the USDollar is rejected on the global stage.

A solution must also come for the ancillary devious devices like secret weapons on weather, virus, espionage, and more. Gold will continue to draw capital away from the dying corrupted sinking system. Then finally the Gold Standard will be installed, but by the Eastern nations. It will be led by Russia, China, and Germany. The United States will be indescribably isolated. The US Fascist leaders have attempted to isolate Iran, but Tehran will be integrated into the Eurasian Trade Zone. The US Fascist leaders have attempted to isolate Russia, but Moscow will be integrated into the Eurasian Trade Zone. The US Fascist leaders have attempted to coerce Europe to join a deadend insane war with an absurd basis, but the core powers of the NATO will move away and be integrated into the Eurasian Trade Zone. The United States is a hair away from losing both Germany and France to the Eastern Alliance. They will embrace gold, and walk away from the USDollar, with a certain absorbed cost. Great changes are coming like a fierce new storm……”

Full article

Argentina Faces Default Again

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“Argentina faces default Wednesday for the second time in 13 years if it doesn’t meet a deadline to make payments to a small group of bondholders. WSJ’s Matthew Cowley explains Argentina’s dispute with these creditors and the long-standing battle that stems from the country’s default in 2001. (Photo: Getty Images)

Argentina teetered on the brink of its second default in 13 years after talks with bondholders collapsed late Wednesday.

The setback, after glimmers of hope in recent days that a last-minute agreement could be reached, immediately sent Argentine stocks plunging in after-hours trading.

Still, there remained the possibility that talks could resume and a deal could eventually be reached.

At a news conference after talks with a court-appointed mediator ended Wednesday, Argentine Economy Minister Axel Kicillof, who had led the country’s delegation to New York, said “we won’t sign an agreement that would compromise Argentina’s future.” A spokeswoman later said negotiations would continue, without giving a timetable.

“Default is not a mere ‘technical’ condition, but rather a real and painful event that will hurt real people,” said Daniel Pollack, the mediator, in a statement late Wednesday. He added, “The full consequences of default are not predictable, but they certainly are not positive.”

The development is the latest turn in a yearslong battle between Argentina and a small group of hedge funds that have demanded full payment for bonds the country defaulted on in 2001. Argentina has refused to pay, despite an order by a U.S. District Court judge requiring it to pay the hedge funds. The issue came to a head Wednesday as Argentina missed a deadline to make a payment it owed to other bondholders, because the court order had prevented such a move.

Mr. Pollack, who had been trying to broker a deal between the two sides, said the country would “imminently” be in default. Standard & Poor’s Ratings Services had earlier Wednesday declared Argentina in default on some of its bonds.

 

A default would pressure an economy already mired in recession, potentially leading to higher inflation and a weaker currency. The breakdown of negotiations also complicates President Cristina Kirchner‘s efforts to stabilize the economy ahead of elections next year…..”

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Greenspan: Stocks Will See a Major Correction

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“Equity markets will see a decline at some point after rising for the past several years, former Federal Reserve chairman Alan Greenspan said in an interview on Bloomberg TV.

“The stock market has recovered so sharply for so long, you have to assume somewhere along the line we will get a significant correction,” Greenspan said on Wednesday.

Alan Greenspan

Andrew Harrer | Bloomberg | Getty Images
Alan Greenspan

Greenspan’s comments come amid growing concern that interest rates near record lows are creating asset-price bubbles….”

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U.S. Trade Deficit Hits a 5 Month Low

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“The trade deficit in the U.S. unexpectedly narrowed in June, reflecting the biggest drop in imports in a year as the economy moved closer to energy independence.

The gap shrank 7 percent to $41.5 billion, the smallest since January, from May’s $44.7 billion, Commerce Department figures showed today in Washington. The median forecast in a Bloomberg survey of 66 economists called for a deficit of $44.8 billion. The drop in purchases of foreign goods included declines in autos and cellular phones, while petroleum imports were the lowest in more than three years.

Demand for goods made overseas will probably rebound in coming months, helped by growinghousehold spending and business investment. Exports were little changed at a record, a sign markets overseas will represent less growth for American factories as Europe’s economy struggles to pick up and geopolitical tensions mount.

“Imports are going to bounce back because of the strength of the U.S. consumer,” said Jay Bryson, global economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “The U.S. is doing better than most advanced countries.” While exports also may rise, “overall, trade won’t add a whole heck of a lot to economic growth,” he said.

Stock-index futures held earlier losses after the report. The contract on the Standard & Poor’s 500 Index maturing in September dropped 0.4 percent to 1,905 at 8:48 a.m. in New York as a buildup of Russian troops on the Ukrainian border intensified investor concern that the crisis will escalate.

Bloomberg survey estimates ranged from trade deficits of $41 billion to $46.7 billion. The Commerce Department initially reported a $44.4 billion shortfall for May.

Fewer Imports…”

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Finding Alternative Exotic Investments

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” “I am a musician, and the monkey is a businessman. He doesn’t tell me what to play, and I don’t tell him what to do with his money.”

David Bonderman, co-founder of private-equity firm TPG Capital, is doing his best French accent for the Beverly Hills crowd, parroting a blind organ grinder confronted by Peter Sellers’s Inspector Clouseau character in the 1975 film “The Return of the Pink Panther.” The audience, gathered in April for the Milken Institute Global Conference, erupts in laughter. So does Leon Black, founder of Apollo Global Management (APO) LLC, who is seated next to Bonderman.

Bonderman’s message is clear, Bloomberg Markets magazine will report in its September issue. Like the film’s monkey and organ grinder, alternative-asset managers and their investors depend on each other. ….”

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DOW Theory Shows Bulls are Firmly in Control

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“CHAPEL HILL, N.C. (MarketWatch) — The Dow Theory—the oldest stock-market timing system in widespread use — remains bullish.

The Dow Theory, for you history buffs, was introduced gradually over the first three decades of the 20th century in editorials in the Wall Street Journal by its then editor, William Peter Hamilton. The three preconditions for a sell signal that he set out are:

  1. •Step #1: Both the Dow Jones Industrial Average and the Dow Jones Transportation Average must undergo a “significant” correction from joint new highs.
  2. •Step #2: In their subsequent “significant” rally attempt following that correction, either one or both of these Dow averages must fail to rise above their pre-correction highs.
  3. •Step #3: Both averages must then drop below their respective correction lows

To be sure, though these steps might appear to be clear enough, they still leave room for interpretation. Among the three Dow Theorists I follow, for example, there is disagreement about whether step #1 has even been satisfied by recent market action.

That’s because it’s not clear whether the stock market’s recent decline qualifies as “significant.” It sure felt significant last week, especially on Thursday when the Dow fell by more than 300 points.

But the rule of thumb that many Dow Theorists employ is that, to be “significant,” the correction needs to last at least three weeks and retrace at least one-third of the previous move.

That would rule out what we’ve seen since the July market highs, of course; that decline so far has lasted just eight trading sessions for the S&P 500 SPX -0.32% and 13 for the Dow Jones Industrial Average DJIA -0.28% — and led to losses of less than 4% for each index.

On that interpretation, therefore, not even the first of this three-step process has been triggered. Richard Moroney, editor of Dow Theory Forecasts, is in this camp, writing that the Dow Theory is “unambiguously bullish.”

Jack Schannep is also bullish, though he does think step #1 has been satisfied. That’s because he believes that, in order for the Dow Theory to be relevant to the 21st century, it must be modified to acknowledge that market movements — even significant ones — occur more quickly than they did when Hamilton introduced his theory a century ago. And Schannep’s modified version of step #1 has been triggered; he is therefore focusing on the second of the three-step process for a sell signal.

Reasons for optimism….”

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S&P Agrees with the IMF, Bifurcation Hurting the Economic Growth Cycle

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“Economists have long argued that a rising wealth gap has complicated the U.S. rebound from the Great Recession.

Now, an analysis by the rating agency Standard & Poor’s lends its weight to the argument: The widening gap between the wealthiest Americans and everyone else has made the economy more prone to boom-bust cycles and slowed the 5-year-old recovery from the recession.

Economic disparities appear to be reaching extremes that “need to be watched because they’re damaging to growth,” said Beth Ann Bovino, chief U.S. economist at S&P.

Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station's Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act, July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.

Tom Williams | CQ Roll Call | Getty Images
Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station’s Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act, July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.

The rising concentration of income among the top 1 percent of earners has contributed to S&P’s cutting its growth estimates for the economy. In part because of the disparity, it estimates that the economy will grow at a 2.5 percent annual pace in the next decade, down from a forecast five years ago of a 2.8 percent rate.

The S&P report advises against using the tax code to try to narrow the gap. Instead, it suggests that greater access to education would help ease wealth disparities….”

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Curiously Strange Evidence Surfaces on Flight MH17

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“The tragedy of Malaysian MH 017 continues to elude any light of clarity being cast over it.

The flight recorders are in England and are evaluated. What can come of it? Maybe more than you would assume.

Especially the voice recorder will be interesting when you look at the picture of a cockpit fragment. As an expert in aviation I closely looked at the images of the wreckage that are circulating on the Internet.

Peter Haisenko in Cockpit of Condor DC 10

First, I was amazed at how few photos can be found from the wreckage with Google. All are in low resolution, except one: The fragment of the cockpit below the window on the pilots side. This image, however, is shocking. In Washington, you can now hear views expressed of a “potentially tragic error / accident” regarding MH 017. Given this particular cockpit image it does not surprise me at all.

Entry and exit impact holes of projectiles in the cockpit area

Source for all photos: Internet

I recommend to click on the little picture to the left. You can download this photo as a PDF in good resolution. This is necessary, because that will allow you understand what I am describing here. The facts speak clear and loud and are beyond the realm of speculation: The cockpit shows traces of shelling! You can see the entry and exit holes. The edge of a portion of the holes is bent inwards. These are the smaller holes, round and clean, showing the entry points most likely that of a 30 millimeter caliber projectile. The edge of the other, the larger and slightly frayed exit holes showing shreds of metal pointing produced by the same caliber projectiles. Moreover, it is evident that at these exit holes of the outer layer of the double aluminum reinforced structure are shredded or bent – outwardly! Furthermore, minor cuts can be seen, all bent outward, which indicate that shrapnel had forcefully exited through the outer skin from the inside of the cockpit. The open rivets are are also bent outward.

In sifting through the available images one thing stands out: All wreckage of the sections behind the cockpit are largely intact, except for the fact that only fragments of the aircraft remained . Only the cockpit part shows these peculiar marks of destruction. This leaves the examiner with an important clue. This aircraft was not hit by a missile in the central portion. The destruction is limited to the cockpit area. Now you have to factor in that this part is constructed of specially reinforced material. This is on account of the nose of any aircraft having to withstand the impact of a large bird at high speeds. You can see in the photo, that in this area significantly stronger aluminum alloys were being installed than in the remainder of the outer skin of the fuselage. One remembers the crash of Pan Am over Lockerbie. It was a large segment of the cockpit that due to the special architecture survived the crash in one piece. In the case of flight MH 017 it becomes abundantly clear that there also an explosion took place inside the aircraft.

Tank destroying mix of ammunition

Bullet holes in the outer skin

So what could have happened? Russia recently published radar recordings, that confirm at least one Ukrainian SU 25 in close proximity to MH 017. This corresponds with the statement of the now missing Spanish controller ‘Carlos’ that has seen two Ukrainian fighter aircraft in the immediate vicinity of MH 017. If we now consider the armament of a typical SU 25 we learn this: It is equipped with a double-barreled 30-mm gun, type GSh-302 / AO-17A, equipped with: a 250 round magazine of anti-tank incendiary shells and splinter-explosive shells (dum-dum), arranged in alternating order. The cockpit of the MH 017 has evidently been fired at from both sides: the entry and exit holes are found on the same fragment of it’s cockpit segment!

Now just consider what happens when a series of anti-tank incendiary shells and splinter-explosive shells hit the cockpit. These are after all designed to destroy a modern tank. The anti-tank incendiary shells partially traversed the cockpit and exited on the other side in a slightly deformed shape. (Aviation forensic experts could possibly find them on the ground presumably controlled by the Kiev Ukrainian military; the translator). After all, their impact is designed to penetrate the solid armor of a tank. Also, the splinter-explosive shells will, due to their numerous impacts too cause massive explosions inside the cockpit, since they are designed to do this. Given the rapid firing sequence of the GSh-302 cannon, it will cause a rapid succession of explosions within the cockpit area in a very short time. Remeber each of these is sufficient to destroy a tank.

What “mistake” was actually being committed – and by whom?….”

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Corporate Debt Ballons, Should You Be Concerned ?

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“It’s not just the stock market we have to worry about. It’s also the bond market.

For the past five years, U.S. corporations have been living in a financial paradise. Interest rates have been on the floor. Wages have been flat. Companies have been able to lay off workers and slash costs. Profits have skyrocketed to record levels. And they’ve spent almost nothing on new capital equipment, either.

And what effect has this had?

In 2007, at the peak of the last credit mania, U.S. nonfinancial corporations owed $7.2 trillion according to data compiled by the U.S. Federal Reserve.

Today? After years of this bonanza, those debts have tumbled all the way down to… er… $9.6 trillion.

All that talk you hear about how corporate balance sheets are in great shape is a bunch of hooey.

Corporations borrowed $993 billion just in the first quarter of this year. Corporate debts have actually doubled since 1999.

Yes, during this time corporate assets have also gone up. Companies have built up some cash reserves (mostly offshore, to avoid the taxman). But the overall picture is alarming.

Today U.S. non-financial corporations are carrying debts equal to 50% of their actual net worth. That is near record levels, and far above historic averages.

In 1950 companies barely owed 20% of their net worth. In the early 1980s it was a little over 25%. Even in 2007 it was below 40%.

And this, note, is after years of record profits. Companies have used their profits, and their borrowings, to drive up their own stock prices.

The picture isn’t much better when you look at U.S. households. In a nutshell, a lot of households have reduced their debts — often by defaulting on their mortgages. But at the same time households have been ramping up more debts — in student loans, in car loans, and on their credit cards. In the first quarter of this year households actually increased their debts by $267 billion — even after you count an $84 billion reduction in mortgage debt. Total debts, after tumbling in the early years of the recession, stopped falling in 2012, and have actually been rising again since early last year….”

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Passing Regulations Afforded the Color of Law

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“The Department of Homeland Security (DHS) acts everyday more like an autocratic government endowed with superpowers beyond anything every imagined by the men who framed our form of government. Consider this disturbing report filed by the Washington Times on August 1 about a DHS raid on a private residence in South Carolina to seize a car that couldn’t pass Environmental Protection Agency (EPA) muster.

Jennifer Brinkley said she saw a line of law enforcement vehicles approaching her home and wondered what was wrong, the local WBTV reported. Homeland Security agents then went to her 1985 Land Rover Defender and lifted the hood.

“They popped up the hood and looked at the Vehicle Identification Number and compared it with a piece of paper and then took the car with them,” she said, WBTV reported.

She told Fox News that she was told the agents seized the vehicle because they thought it violated the Clean Air Act — though at the time, they weren’t completely sure. She also said her vehicle was just one of 40 that feds seized in various locations that same day for the same reason.

Ms. Brinkley told Fox News that she has no idea where the vehicle is now and that feds won’t tell her.

“I’m sad because I owned the car. It’s just an iconic car. I’m in disbelief … and surprised that somebody can come in and take your property,” she told Fox News. “It’s scary, it’s scary when it happens to you.”

What’s even scarier is that it is happening more and more. The EPA, DHS, the U.S. Forest Service, the Bureau of Land Management (BLM), etc. are all accustomed to unaccountably passing regulations afforded the color of law, enforcing those regulations, adjudicating challenges to those regulations in front of “judges” appointment by the commissioners of those agencies, and imposing burdensome fines on anyone foolish enough to defy these petty tyrants.

Charles Pinto Duclos, a French writer and historian contemporary with the Founders, wrote:

We see on the theater of the world a certain number of scenes which succeed each other in endless repetition: where we see the same faults followed regularly by the same misfortunes, we may reasonably think that if we could have known the first we might have avoided the others. The past should enlighten us on the future: knowledge of history is no more than an anticipated experience.

In the case of these federal agencies terrorizing citizens….”

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European Markets and U.S. Futures Celebrate the Bailout of Portugal’s Largest Bank

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“(Reuters) – European stocks rose on Monday and bond yields fell on a banking sector rebound after Portugal prevented the collapse of one of its biggest lenders and shares in the continent’s largest bank jumped in the wake of its latest earnings report.

This dovetailed with easing fears of higher U.S. interest rates following Friday’s U.S. employment report, and eclipsed growing geopolitical concerns over the Middle East and the effect of Western trade sanctions on Russia.

Lisbon on Sunday announced a near 5 billion-euro rescue of the country’s largest listed bank, Banco Espirito Santo, preventing it from collapsing and potentially destabilizing the banking sector regionwide.

“The market’s initial reaction is that it’s pretty reassuring to see Portugal moving quickly to rescue BES. Overall it eases systemic fears that had resurfaced last week,” Saxo Bank sales trader Andrea Tueni said.

On Monday, HSBC reported a larger-than-expected drop in profits, but investors looked instead to the bank’s attractive dividend yield and scooped up the shares, lifting them to a three-month high….”

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Documentary: Earthlings

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If you watch this from begining to end you will come to know fully what willful ignorance means.

There will be no mercy from your maker.

Cheers on your weekend!

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209k Jobs Added in July, Unemployment Rate Rises to 6.2%

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WASHINGTON—Hiring by U.S. employers slowed in July but remained robust with broad-based payroll gains, evidence of continued strength in the labor market and the broader economy.

Nonfarm employment rose by a seasonally adjusted 209,000 last month, the Labor Department said Friday.

The unemployment rate, obtained via a separate survey of households, ticked up to a seasonally adjusted 6.2% in July from 6.1% in June. The jobless rate has fallen 1.1 percentage points since July 2013, when it was 7.3%.

Economists surveyed by The Wall Street Journal had expected payrolls to rise by a more robust 230,000 and the jobless rate to remain at 6.1%.

Payrolls rose by 298,000 in June, revised up from an earlier estimate of 288,000, and May’s gain was revised up to 229,000 from an earlier estimate of 224,000. Payroll gains have averaged 245,000 over the past three months, compared with an average of 209,000 in the 12 months ended in June.

July’s gain extended a streak that has seen nonfarm employers add 200,000 or more jobs in six consecutive months for the first time since 1997.

The U.S. economy stumbled in the wintry first quarter as gross domestic product-—the broadest measure of output across the economy—contracted at a 2.1% seasonally adjusted annual rate. But growth rebounded in the second quarter, with GDP growing at a 4% pace as companies continued to hire workers and the jobless rate declined at a rapid pace.

The Federal Reserve on Wednesday acknowledged improvement in the labor market. But its policy statement warned that “a range of labor market indicators suggests that there remains significant underutilization of labor resources,” and that “a highly accommodative stance of monetary policy remains appropriate” given the state of the economy.

The Fed has kept short-term interest rates near zero since December 2008 to bolster the U.S. economy through a financial crisis, a deep recession and a lackluster recovery. The central bank now is winding down its bond-buying program and officials expect to begin raising rates sometime next year, though Chairwoman Janet Yellen in mid-July said that rate hikes “likely would occur sooner and be more rapid than currently envisioned” if the labor market “continues to improve more quickly than anticipated.”

In July, hiring was broad-based. Payrolls rose in the professional and business services, manufacturing, retail, construction and public sectors….”

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How Low Do the Markets Go ?

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Point wise, today did not feel like a good day.

Volume wise, we seem to have nothing to worry about.

The DOW looks worse than the S&P partly due to the fact we have reached the level where the year began.

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The next key level to watch is 1905ish on the S&P. Below that there is a lot of support at 1850ish S&P.

RSI, MACD, & Williams all indicate we have some more room to fall, but i would be surprised if we fall much further. I would bet on a intra day test of S&P 1905 and then some type of reversal.

If we have a stellar jobs report tomorrow then expect the market to fall a bit as the pundits of spin are creating fear over the fed rasing rates sooner than later due to some inflation and improving labor conditions.

Let’s face it, the employment scenario for many, many, many citizens is still terrible.

Also the smart money knows that off balance sheet losses for the big banks is still a major problem; so ZIRP should be in force and there should be no reason to fret about rates moving higher sooner over later.

A worst case scenario would be to see some heavy volume taking the S&P down to the 1815-1830 level. Chances are we do not see this level as the market has that teflon resilience in play.

To be safe, I’m taking half my money off the table hoping the S&P heads lower to give me a good buying opportunity. Luckily, i’m up around 42% for the year so taking some profits would not be a bad thing. If i do not get the buying opportunity i’m looking for then i get to redeploy funds into more issues creating more risk tolerance in a slightly volatile sketchy market.

May the markets be on your side.

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House Clears Way for Lawsuit Against Obama

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“House Republicans voted to proceed with a lawsuit against President Obama on Wednesday, saying that his executive actions are so extreme that they violate the Constitution.

The nearly party-line vote — all Democrats voted against it, and all but five Republicans voted for it — further agitated an already polarized climate on Capitol Hill as both parties used the pending suit to try to rally support ahead of the November elections.

Halfway across the continent, Obama almost gloated at the prospect of being sued.

“They’re going to sue me for taking executive actions to help people. So they’re mad I’m doing my job,” Obama said in an economics speech in Kansas City, Mo. “And by the way, I’ve told them I’d be happy to do it with you. The only reason I’m doing it on my own is because you’re not doing anything,” he said of Congress.

The clash came a day before Congress is scheduled to begin a 51 / 2-week summer break and as must-pass bills on reshaping veterans’ health care and highway construction appeared headed for passage — while most everything else was not….”

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Should You Really Be Concerned About Derivatives ?

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“………SYSTEMIC RISK FROM CONTAGION

Apart from numerous background pressures, the system limps along deeply wounded and probably fatally so. When China wanted to exit the long-term USTreasurys, the USFed accommodated them. They launched Operation Twist without much clear explanation of its provisions. We are always led to trust the magic of their machinations. China actually transferred their long-term bond holdings to short-term holdings, in order to make possible their redemption at maturity, and soon, like before the implosion. The USFed accomplished the task by putting on an enormous swath of cleverly devised Int Rate Swaps, which in effect switched from LT bond to ST bond. There are a great many other types of derivatives, such as exotic swaps, and customized contracts.

The entire Euro Monetary Union has its foundation created upon swapped hidden debt into FOREX currencies, an illicit deed that to this day has not been resolved. The Maastricht Treaty was circumvented by means of heavy swap contracts, shifting debt onto currency obligations in the form of these derivative swaps. Many were the big investment banks eager to assist in the deception and illicit qualification process, and thus earn big fees. The nations of Italy and Spain, for instance, were able to qualify for the European Monetary Union by hiding their debt with the FOREX swaps. Prosecutions are laced all through the Deutsche Bank chambers here and now, the legal wheels of justice grinding slowly. Therefore, the Euro Currency has a phony fraudulent foundation, an illicit basis enabled by derivative abuse. The victim of the ongoing prosecution, if the USGovt chooses to impose yet more heavy fines, could be the German alliance. The Germans are ready to jump ship, away from the sinking USS Dollar.

Perhaps the ugliest derivative story is the IRS Tax secure stream contract very likely used by China as collateral, which is suspected by the Jackass to be the backend deal to secure a Gold Lease from China. It is related to the 1999 Most Favored Nation granted by US to China. The Chinese would receive gigantic direct foreign investment, and thus build an industrial base. The Wall Street criminal bankers would receive a vast hoard of gold bullion, leased from the Chinese Mao Era gold reserves. The Chinese distrusted the US bankers, after many past experiences, which might include several rafts of fake gold bars sent to Hong Kong banks by the Clinton-Rubin Admin. In the outcome, the Wall Street masters reneged on the gold lease, while the USEconomy entered a downward spiral of recession which accelerates downward. The Jackass suspects that the powerful recession made impossible the honoring of the IRS secure stream derivative contract held as collateral, forcing a national default. In the last few months, we see China busy securing US commercial property. The Chinese have taken control of the JPMorgan Chase headquarters in South Manhattan, the famed One Chase Plaza. In it is contained the largest private gold vault facility in the world. It has underground tunnels connected to the US Federal Reserve. Many are the rumors and suspicions that with the end of the Federal Reserve Act operational contract, following 100 years of hidden financial tyranny, that the Chinese might have taken over a strong interest in the Fed, maybe a controlling interest.

GOLD ON WHITE HORSE

The Western financial system is operating on fragile tenterhooks, on shaky pylons, on that same vaporous floating spinning illusory foundation. A few big banks have entered failure, like Banco Espirito Santo in Portugal. When big banks begin to fail, the belief has been, the risk of contagion will be the main focus. Since Lehman, the major Western banks have lashed themselves together for safety and security. They have done so with financial derivatives, the rope to connect them together. Thus no repeat of Lehman failure, a big financial firm failure to put the entire system at risk of breakdown. So the next failures will put the entire system at risk of collapse. This is the oft-described nuclear outcome, which has been brought upon by the overusage of derivatives. Their total in usage is somewhere between $700 trillion and $1.4 quadrillion, depending on the definition and the team doing the calculation. Claims of big reductions in derivative overall usage are a lie, since new derivatives are put on quickly. They offer short-term security but long-term systemic risk. The world faces a guaranteed systemic implosion caused by derivatives. Bank failures and contagion will lead to the widespread connected failures, and lost control by both governments and central banks to manage them. Gold will be the secure port during the stormy outcomes.

The derivative cost will be revealed as obscene, in high multiple $trillion suddenly. The public will ask questions like how we could have permitted the situation to go out of control. To be sure, derivatives assure the equivalent of a financial nuclear explosion. The answer to the question posed is that the Rubin Doctrine has been used after the Rubin thefts of the USGovt gold reserves at Fort Knox. The doctrine dictates the sacrifice of tomorrow for a few more todays. Well, tomorrow has arrived. The return to the Gold Standard is the answer, but the clean-up crews will be busy for a long time. The Gold Price will reach incredibly high levels when the derivative implosion occurs, which should occur when the East introduces a legitimate gold-backed new BRICS currency for trade settlement. The fallout will be tremendous, as the USDollar is rejected on the global stage.

A solution must also come for the ancillary devious devices like secret weapons on weather, virus, espionage, and more. Gold will continue to draw capital away from the dying corrupted sinking system. Then finally the Gold Standard will be installed, but by the Eastern nations. It will be led by Russia, China, and Germany. The United States will be indescribably isolated. The US Fascist leaders have attempted to isolate Iran, but Tehran will be integrated into the Eurasian Trade Zone. The US Fascist leaders have attempted to isolate Russia, but Moscow will be integrated into the Eurasian Trade Zone. The US Fascist leaders have attempted to coerce Europe to join a deadend insane war with an absurd basis, but the core powers of the NATO will move away and be integrated into the Eurasian Trade Zone. The United States is a hair away from losing both Germany and France to the Eastern Alliance. They will embrace gold, and walk away from the USDollar, with a certain absorbed cost. Great changes are coming like a fierce new storm……”

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Argentina Faces Default Again

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“Argentina faces default Wednesday for the second time in 13 years if it doesn’t meet a deadline to make payments to a small group of bondholders. WSJ’s Matthew Cowley explains Argentina’s dispute with these creditors and the long-standing battle that stems from the country’s default in 2001. (Photo: Getty Images)

Argentina teetered on the brink of its second default in 13 years after talks with bondholders collapsed late Wednesday.

The setback, after glimmers of hope in recent days that a last-minute agreement could be reached, immediately sent Argentine stocks plunging in after-hours trading.

Still, there remained the possibility that talks could resume and a deal could eventually be reached.

At a news conference after talks with a court-appointed mediator ended Wednesday, Argentine Economy Minister Axel Kicillof, who had led the country’s delegation to New York, said “we won’t sign an agreement that would compromise Argentina’s future.” A spokeswoman later said negotiations would continue, without giving a timetable.

“Default is not a mere ‘technical’ condition, but rather a real and painful event that will hurt real people,” said Daniel Pollack, the mediator, in a statement late Wednesday. He added, “The full consequences of default are not predictable, but they certainly are not positive.”

The development is the latest turn in a yearslong battle between Argentina and a small group of hedge funds that have demanded full payment for bonds the country defaulted on in 2001. Argentina has refused to pay, despite an order by a U.S. District Court judge requiring it to pay the hedge funds. The issue came to a head Wednesday as Argentina missed a deadline to make a payment it owed to other bondholders, because the court order had prevented such a move.

Mr. Pollack, who had been trying to broker a deal between the two sides, said the country would “imminently” be in default. Standard & Poor’s Ratings Services had earlier Wednesday declared Argentina in default on some of its bonds.

 

A default would pressure an economy already mired in recession, potentially leading to higher inflation and a weaker currency. The breakdown of negotiations also complicates President Cristina Kirchner‘s efforts to stabilize the economy ahead of elections next year…..”

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Greenspan: Stocks Will See a Major Correction

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“Equity markets will see a decline at some point after rising for the past several years, former Federal Reserve chairman Alan Greenspan said in an interview on Bloomberg TV.

“The stock market has recovered so sharply for so long, you have to assume somewhere along the line we will get a significant correction,” Greenspan said on Wednesday.

Alan Greenspan

Andrew Harrer | Bloomberg | Getty Images
Alan Greenspan

Greenspan’s comments come amid growing concern that interest rates near record lows are creating asset-price bubbles….”

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