Citi: Yen Heading to 95 v the Dollar

Apparently, no one is afraid of a strengthening yen anymore. The good folks at the BOJ have done a splendid job cornering their stock market, via QE fueled ETF purchases in the open market, jacking up share prices of companies that should be indelibly fucked. With the yen rising against the dollar, Japanese exporters and yen carry trade players are placed inside of a jam-box with no place to go but down. Nevertheless, the NIKKEI has been drifting along just fine this summer, as the central bank robber barons apply their science to the markets.

“There is some skepticism that they are going to mount an even stronger defense against yen appreciation,” Todd Elmer, Citigroup’s head of G-10 foreign-exchange strategy for Asia ex-Japan, said in an interview in Singapore on Friday. “International authorities aren’t going to be seeing any signs that a stronger yen is destabilizing other markets. If anything, since the spring, there does seem to be some degree of agreement among international authorities that a somewhat weaker dollar is a better outcome for global markets.”

MOAR

A weak dollar has “been associated with stronger asset prices, less volatility, and I don’t think that pattern is going to change anytime soon,” Elmer said.

The yen will probably reach 95 before the Bank of Japan meets on Sept. 21 unless investors are convinced the authorities will move beyond the policy steps that have been unveiled so far, he said.

The BOJ last month disappointed investors by leaving two key policy tools — bond purchases and negative interest rates — unchanged. That sentiment was compounded after details of a 28 trillion yen ($278 billion) fiscal spending package released on Aug. 2 failed to ignite optimism that Japanese Prime Minister Shinzo Abe can boost growth.

“To me the path of least resistance is lower for dollar-yen,” Elmer said. “There’s not a great deal of fear in the market for intervention.”

Typically, when the yen rises, the NIKKEI falls. Not recently.

Year to date, the yen is higher by 20% v the dollar and the NIKKEI is down 12.25%

Back in March of 2013, the US Department of Agriculture opened up American markets to Egyptian strawberries. This was delightful news for the freedom loving Arab springers, who just got done running through the streets like morons, in search of theocracy. In a little more than 3 years hence, dozens of people are now ill with hepatitis A, provided by the good smoothie makers at Tropical Smoothie.

In a statement given a few months ago, Alain Tulpin of Tulpin Group discussed the difficult harvest Egypt was facing, saying “The weather in Egypt was too cold, which meant the strawberries didn’t get the right colour. The production volumes were also disappointing.” The demand there was a lot lower, I estimate that the consumption decreased by a third. All in all the Egyptian season is disappointing, but that’s the fruit and vegetable sector. One year you will make a profit, the next not so much.”

He did not mention, however, that the weak harvest would produce a bountiful amount of projectile vomiting patrons at a low end Virginian smoothie chain.

The Virginia Department of Health said testing indicates frozen strawberries from Egypt used at Tropical Smoothie Cafe stores may be to blame for the illnesses.
Tropical Smoothie Cafe said it stopped using strawberries from Egypt at all of its stores, including those outside Virginia, after learning about the potential issue. The smoothie chain said the cafes and their food handling practices “have not been implicated in any way.”

Health officials are encouraging anyone who consumed a smoothie with frozen strawberries at a restaurant in the last 50 days to watch for symptoms of hepatitis A. Those include jaundice, fever, fatigue, loss of appetite, nausea, vomiting, abdominal pain, dark urine and light-colored stools.

Individuals who consumed a smoothie from a Tropical Smoothie Cafe in Virginia that contained frozen strawberries on Aug. 5, 6, 7 or 8, 2016, may still benefit from vaccine or immune globulin to prevent hepatitis A, the health department said.

Health officials said a vaccine or immune globulin given within two weeks of exposure to hepatitis A virus is effective at preventing the disease.
There are 96 Tropical Smoothie Cafe locations throughout Virginia, according to the chain’s website. Visit their website for all locations. There is no information at this time that any Maryland locations have been affected.

In a statement given by Tropical Smoothie, they shit (pun intended) on the great pyramid nation of Egypt.

“Tropical Smoothie Cafe was notified by the Virginia Department of Health about several foodborne illnesses in the state linked to frozen strawberries sourced from Egypt. Our cafes and their food handling practices have not been implicated in any way – the health department believes this is a single product issue (strawberries) sourced from Egypt. Egyptian strawberries represent a fraction of our overall strawberries purchased, and were predominantly distributed to stores in the Virginia market. Today, our strawberries are primarily sourced from Mexico and California. However, in an abundance of caution, we voluntarily pulled all strawberries sourced from Egypt from every cafe in our system, not only the Virginia cafes. Our primary concern is for the safety and well-being of our guests and crew members and we will continue to cooperate with the health authorities.”

Be careful where you’re sourcing your fresh fruits and vegetables from.

Hang on, let me guess why yields are rising.

1. Bond bubble of an unprecedented scale.
2. The Fed is gonna hike rates.

Right?

You’re fucking nuts.

As I write this, US 2yr notes are yielding 0.77%, based off some fucking inane assumption that we’re in a bond bubble and the Fed is sick and tired of low borrowing rates for the government and are fixing to jack carrying costs for the nation, in order to apply fiscal fuckery onto this great steak’d land, just because.

Now that I got that off my chest, answer the following questions.

How can we be in a bubble when all of Europe and Japan are purposely controlling their bond yields? For those of you who say it’s a conspiracy to say the market is rigged, I entreat you to study the QE programmes of both Europe and Japan. Understand, that without QE, Spanish, Italian, Portuguese, Irish and even French yields would be through the fucking roof. It’s absurd to think that Italy or Spain should be able to borrow at lower rates than America. But that’s what’s happening. Also, it’s positively insane to believe the Japanese markets would be even close to where it is now, if not for their complete control of their stock market, via stock and ETF purchases.

So, with that in mind, global markets are 100% rigged. Period, end of story.

To that point, and using the same logic, we can’t be in a traditional ‘bond bubble’ if the fucking market isn’t natural and is being controlled by central bank printing presses. In my opinion, bonds will continue to outperform, providing there are buyers out there who are fucking mandated, by law, to buy and control the market.

With regard to the Fed hiking rates, come on son. Do we really need to get into this monetary land of fantasy, one that would bring forth an undeniable nightmare for the corrupt and soulless ghouls who depend on fiscal chicanery to gain reelections?

Sanofi tried to buy them about a month ago for much cheaper prices and were told to buzz off.

Enter cash cow Pfizer.

By acquiring Medivation, Pfizer would gain a blockbuster prostate-cancer treatment, Xtandi, that’s already approved and that analysts project will generate $1.33 billion in sales by 2020.

Medivation previously had rejected French drugmaker Sanofi’s offer of $58 a share, plus a contingent value right valued at a maximum of $3 a share. The Financial Times reported earlier Sunday that the Pfizer agreement was imminent.

This deal bodes well for large cap biotech, companies with advanced pipelines and good prospects for positive free cash flow. This is not, however, an endorsement for rampant speculation in early stage refuse, which currently populates the biotech sector in overwhelmingly large numbers.

The deal prices MDVN at $87, approximately 25% above Friday’s close.

The Frankfurter Allgemeine Sonntagszeitung newspaper reported on Sunday that German officials are set to advise its people to stockpile 5 days of water and 10 days of food. Naturally, it must be due to the right wing threat of nazi boot wearing Iranians rampaging throughout Bavaria.

“The population will be obliged to hold an individual supply of food for ten days,” the newspaper quoted the government’s “Concept for Civil Defence” – which has been prepared by the Interior Ministry – as saying.

A spokesman for the Interior Ministry said the plan would be discussed by the cabinet on Wednesday and presented by the minister that afternoon. He declined to give any details on the content.

People will be required to stockpile enough drinking water to last for five days, according to the plan, the paper said.

The 69-page report does not see an attack on Germany’s territory, which would require a conventional style of national defense, as likely.

However, the precautionary measures demand that people “prepare appropriately for a development that could threaten our existence and cannot be categorically ruled out in the future,” the paper cited the report as saying.

Germany’s Defence Minister said earlier this month the country lay in the “crosshairs of terrorism” and pressed for plans for the military to train more closely with police in preparing for potential large-scale militant attacks.

One has to ask oneself: what sort of fuckery is this? The German government is asking its citizens to stockpile 5 days worth of water without a valid reason? There isn’t a credible threat or looming war, so why make such a drastic request?

Time will tell.

Holy shit, I must’ve been sleeping the week this gem came out. This is a work of art. Enjoy.

The Obama administration hasn’t ceded to the will of Turkey’s dictator, Erdogan, likely because the media is watching this shit like a hawk. Over in Turkey, where Erdogan gets to arrest school boys and rip them apart from their parents, for allegedly ‘assisting in the coup’ against his regime, superficialities like ‘rule of law’ or being mindful of a free press is something completely foreign to him. If he doesn’t like a newspaper or a certain teevee channel, he shuts them down.

I needed to add that context before filling you in with the rest of the story.

The U.S. position on Fethullah Gulen, who lives in self-imposed exile in Pennsylvania, is “overshadowing our strategic partnership,” Erdogan said in televised comments on Sunday. “Turkey’s never asked from America to provide documents or proof on criminals that they’ve wanted us to extradite — we’ve given them the terrorists they wanted,” he said.

Well that’s nice, isn’t it? The great Istanbul regularly hands over people to the United States, without ever asking for documents or proof of criminality. This sounds like a great tourist destination for me.

Taking the above into consideration, you can see how Erdogan is a little pissed off by the one way street the Obama administration is operating under. He’s sent us so many people without ever having to burden us with proving they were bad guys. In his mind, it’s only right and fair that we provide him with one mere morsel of a human being, which would then become the crown jewel of his counter-coup insurgency, which has led to over 20,000 arrests and 80,000 people removed from public duty.

Over the past week, as I was away on vacation, the bloggers on my blog roll went crazy with all sorts of outlandish posts. In an effort to keep the information relevant, by which is telegraphed on this bloggery, I will only highlight their recent work. But, just know, lots of outlandish shit has been taking place–some of which will not be repeated in these hallowed halls.

Zerohedge: The Clinton Foundation is a Cesspool of Shit and Garbage

Daily Reckoning: Joe Scarborough is a Globalist Shit Eater, Biased Against Trump

Ritholtz: Ten Worthless Weekend Reads, None of Which Include iBankCoin Because I Never Link to that Crazy Fucking Site

Wealth of Common Sense: How to Survive the Pangs of a Bull Market

Irrelevant Investor: If the Elections Are Interfering with Your Investment Plan, Then You’re a Fucking Moron. Seek Counsel.

Mish: The Banksters Have Increased Their Criminality to Include Charging You For Holding Cash

Pragcap: Being ‘Fiscally Responsible’ is Idiotic, And Growing Out of Deficits Towards Elysium

Contra Corner: The End is Near; You’re All Doomed

Economic Collapse Blog: FUCK INTERNET TROLLS

Financial Sense: DEVALUE THE FUCKING DOLLAR TO SAVE SOCIAL SECURITY!!!

Wolf Street: America Loves Layoffs

Howard Lindzon: America the Juicy: Let the Good Times Roll and the Harems Be Stocked with Fresh Whores

Business insider: Chinese Fuckery

ReCode: Lyft is Looking to Cash the Fuck Out for $9 Billy

Tech Crunch: Fuck Truck Drivers; The Driverless Truck from Red Hell is on its Way (can’t wait for this shit on the highway)

The Verge: Some Moron Vlogger is Providing N. Korea with Free Propaganda

SPECIAL ALERT: Uncle Fred is 55 Years Old. Cheers to Another 55 Years of Vulture Capitalism and Wanton Vagrancy in Capital Markets!

You can’t keep your own doctor, apparently.

According to a new report by Avalere Health, more than 1/3rd of the nation will have 1 or fewer plans in 2017, up from 4%–as insurers say “fuck this shit, we’re out” and opt out of the egregiously ineffective government mandated health insurance scheme.

“Lower-than-expected enrollment, a high cost population, and troubled risk mitigation programs have led to decreased plan participation for 2017,” said Dan Mendelson, president of Avalere. “Congress and the Administration can choose to stabilize these markets and re-establish competition—but only through a consensus process that brings in a broader swath of the uninsured.”

This is how it might play out, per state.

The solution is very simple, obviously. Family plans for middle class folks run anywhere from $1,200 to $1,900 per mo. With that number set to explode higher, thanks to millions of less fortunate people now sucking off the government tit, it’ll likely force many of those middled class families to become naked and without health insurance. The landscape will change dramatically, over time, as the pool of paying Obamacare people shrink. The disheveled will ingratiate themselves with world class leading healthcare, while the slaves of the middled class die from the flu, as they’ll be unable to afford simple visits to the doctor for basic care.

In order to avoid all of this headache, the global elite inside the healthcare-government complex should REWRITE Obamacare and change it to the Clinton plan, once Hillary is elected. The new plan should MANDATE all citizens to become enveloped by this health insurance plan, through onerous taxes levied against them in the same method social security is funded now.

Also, there should be a one time tax of 50% on all assets being held in cash by people with a net worth of $100 million or more, in order to fund this great experiment that will make America healthy again. If you’re unable to find places to invest your cash in this glorious nation of 325 million people, the government will find a place to invest it for you.

Thank you very much. Have a nice day.

Instead of traveling to distinguished parts of Rhode Island or Maine, I wanted to mix it up a bit, so I went to Massachusetts. The locale was terrific and the scenery was great. But the people were of a wantonly barbarous sort. I’ve never seen so many angry people living in such a beautiful place, them and their Elizabeth Warren bumper stickers telling me to ‘GO FUCK YOURSELF’ for doing 50mph in a 55mph lane, with kids in their cars.

The Bernie Sanders folks up there are livid with life and are a vulgar people. The city of Boston should’ve been razed by the British many years ago and the land salted. Instead, those people are driving around angry as sin, foaming from the mouth whilst screaming profanities at a car filled with children. Say what you want about NY, but we draw the line when kids are involved. We’ll hunt you down quietly and kill you after the kids went to bed, sparing them the emotional anguish of hearing vulgarities.

But I’m not from NYC anymore and haven’t been in quite some time. I’d rather be dead than have to move back to that cesspool.

Looking over the market internals, I see apparel stocks were the best performers this week. NWY, URBN and FL led the way. Analysts are saying inventories are very low, heading into the holiday season. I am sure this will work out splendidly for retail investors. Jeff Bezos seems to be transfixed with printing lies at the Washington Post, in his futile attempts to derail Magnanimous Trump. I am certain he is no longer interested in turning all American shopping malls into landfills and America, as a whole, into a Matrix like dystopian society, courtesy of Amazon Prime.

Nothing can go wrong. The market isn’t rigged. That’s a conspiracy theory.

Good night.