from Stefan Molyneux
The Game of Power
by Nomi Prins
Daily Reckoning
Building from my latest Don’t Get Caught in the U.S – China Crossfire – Game of Thrones Part I (click here) and Part II (click here) featured on The Daily Reckoning – find a Game of Thrones layout of the central banking game of power.
The Fed, led by Janet Yellen, is acting as if it will retain its power forever simply because it’s currently the most power player in the game of global monetary policy. As stated at the beginning of Part I, the Fed behaves as if it has no idea that there are other countries and central banks operating around the world which would love to claim the top power spot.
The People’s Bank of China (PBoC) doesn’t have to convince these other central bankers that it is the best candidate to take over that top spot, it only has to be the best alternative to the Fed. Under the Fed’s monetary lead, stock markets have reached historic highs on a steady diet of artificial money.
Icahn: I’m ‘More and More’ Concerned About the Stock Market
by Berkeley Lovelace Jr.
CNBC.com
Billionaire investor Carl Icahn told CNBC on Monday he is “more and more” concerned about the stock market, and many S&P 500 companies are “way overvalued,” considering the risk in emerging markets.
In an interview with Scott Wapner on “Fast Money Halftime Report,” the chairman of Icahn Enterprises said he is cautious about the market on the long term basis, but on the short-term it’s “anybody’s guess.”
Icahn did say, however, that nutritional supplement-company Herbalife is “undervalued” and is a good model that gives jobs to many people. Icahn’s firm is the largest shareholder of Herbalife, and he has been in a high profile battle against hedge fund billionaire Bill Ackman over the company.
Favorability Ratings: Clinton vs. Trump, Hollande vs. Le Pen vs. Sarkozy
by Mike ‘Mish’ Shedlock
Mish Talk
The favorability ratings of Donald Trump and Hillary Clinton are the worst ever in US politics. However, those ratings they pale in comparison to the negativity in French politics.
Favorability Ratings Trump vs. Hillary Clinton
Favorability Ratings Hollande, Sarkozy, Le Pen
Hollande Upsets Everybody
A steel town visit by Hollande backfires as the unpopular president struggles to gather support for re-election bid.
The poster complains about tax havens and high unemployment.
Please consider Indiscreet Hollande Upsets Even his Closest Allies.
Not Your Mate
by Tim Price
Sovereign Man
The consumption of financial media can be dangerous. Mixed with overpriced global brands, it can be deadly. In August 2000, Fortune Magazine published an article entitled ‘Ten stocks to last the decade’. As befits something written during the latter stages of the TMT boom, Fortune’s recommendations concentrated on Technology, Media and Telecoms stocks. Their ‘Ten stocks to last the decade’, and their stock prices at the time of original publication, were:
Another View of ETFs
by Monty Pelerin
Monty Pelerin’s World
Another view of ETFs is available from ETF Daily News. Their approach differs from the Dynamic Momentum System (DMS) used here, but those interested in ETFs should find value at this site.
There are major differences between the DMS approach and the one at ETF Daily News. The DMS approach focuses on short-term opportunities, trades frequently and is not a comprehensive trading strategy. DMS was designed to allow one to be aggressive with a small portion of one’s portfolio. If used, it should be used in conjunction with, not as a substitue for, a properly designed portfolio. The ETF Daily News approach could be used to develop a diversified portfolio.
No representations are made regarding the outcomes from using these rankings.
The information provides another way to approach ETF investing. Regardless of what system or philosophy you follow, be aware that correlation exists in markets. Diversification as a protection tends to break down in market melt-ups or melt-downs, although bonds are probably the best protection against stock movements.
Financial War Conversation with America’s Top Spy
by James Rickards
Daily Reckoning
Only one person has ever been Director of both the National Security Agency and the Central Intelligence Agency. That person is retired Four-Star General Michael Hayden.
On June 1, 2015, I had the chance to talk to Mike Hayden on Capitol Hill in Washington, DC.
We were both there as part of a conclave to discuss the status of Iran-U.S. negotiations on uranium enrichment and Iran’s nuclear weapons program. We had a chance to talk one-on-one about my specialty, which is financial warfare, and the potential impact on investors. Needless to say, General Hayden’s insights were fascinating.
General Hayden’s career as a military and intelligence officer spans four decades beginning with his commission as an Air Force officer in 1969.
Hillary Called Black Servant the ‘N-Word’ Claims Former Clinton Chef
from Paul Joseph Watson
[Ed. Note: Why would Hillary call the chef a ‘Neo-con’? I don’t get it.]
Why They Keep Trade Deals Secret
by Claudio Grass
Mises.org
Thousands of people recently demonstrated in Brussels against free trade deals negotiated by the EU. This happened just days before a meeting of EU trade ministers in Bratislava last month, which was considered the last push to salvage the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States. Not only is Europe divided on the deal, but the talks have been extremely secretive.
Many protestors were especially opposed to the secrecy surrounding the trade deals.
It appears that the two partners wanted the negotiations process to remain well under the public’s radar, counting on people being distracted by other matters, such as “Brexit,” terrorism, the refugee crisis, and the ongoing economic slump.
Bank of America Tells Stock Investors to Get ‘Real’ as Inflation Makes Its Comeback
‘Buy humiliation and sell hubris,’ says Michael Hartnett
by Sue Chang
Market Watch
Inflation is making a comeback and it’s time investors start thinking about hedging against its corrosive effect on assets and against the monetary policy tightening that’s likely to accompany bubbling price risk, a Bank of America Merrill Lynch strategist said Monday.
The best approach? “Buy humiliation, sell hubris,” said Michael Hartnett, chief investment strategist at Bank of America.
He predicted inflationary pressure will build as central banks begin to scale back policy support. Ahead of that reversal, investors should rotate out of stocks and bonds to “real” assets, given their positive correlation with inflation.
“Today the humiliation is very clearly commodities, while the hubris resides in fixed-income markets,” Hartnett said.
ECB’s First Chief Economist Warns – The EU is a ‘House of Cards’
by Michael Krieger
Liberty Blitzkrieg
None of the following about the EU will come as a surprise to most of you, but the language used by Otmar Issing is nevertheless pretty remarkable.
The Telegraph reports:
The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.
“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.
Bonds & Bullion Bid, Stocks Skid As China Currency Collapse Continues
from Zero Hedge
The storms are coming…
[…] For the 11th day of the last 12, the Yuan has weakened to fresh 6 year lows for Offshore…
[…] And the effects are starting to ripple through markets.
US equity futures show the desperate effort to pump stocks green around the US open… with an ugly close
Is this Why US Industrial Companies Don’t Invest?
by Wolf Richter
Wolf Street
Production lower than 2 years ago, with ugly capacity utilization.
Total industrial production in the US fell 1.0% in September compared to September 2015, according to the Fed’s Board of Governors today. The index, at 104.2, is now 2.3% off its all-time peak in November 2014, and also 1.3% below where it had been two years ago (105.6). So two years in a row of year-over-year declines.
The first time the industrial production index had reached this level was in March 2007!
Costa Rica: When Lifestyle Trumps Finance
by Ted Bauman
The Sovereign Investor
Costa Rica is an unusual place.
For starters, its army was disbanded shortly after World War II in order to take military coups out of the political equation. It’s been peaceful ever since, unlike its Central American neighbors.
Like Uruguay farther south, Costa Rica has a strong track record of good governance, strong economic growth and good policies on individual rights, human development and care for the environment. Thanks to its military-free budget, it has a highly educated population, low inequality and correspondingly low crime.
The country’s focus on good living rather than political squabbling has allowed it to move from dependence on coffee and banana exports to a diversified economy embracing medical and ecotourism, pharmaceuticals and software. It has good infrastructure and communications services.
Painful Dilution and Incredible Numbers
by Gerardo Del Real
Outsider Club
Gold was relatively flat this week, settling in the $1255 range. After several weeks of declines it appears to be consolidating a bit.
I’d still be cautious and expect to see a couple of head fakes before another leg down.
The dollar continues higher and closed up approximately 1.4% of the week.
Like gold, silver was also relatively flat, registering a slight gain of approximately 0.3% for the week and settling in the $17.43-an-ounce range.
Copper fell approximately 2.4% this week and closed at approximately $2.11/lb. while platinum and palladium were down approximately 3.1% and 4.1% respectively.
Empire State Kicks Off Regional Manufacturing Reports With Dismal Showing: Spotlight on Look-Ahead Sentiment
by Mike ‘Mish’ Shedlock
Mish Talk
The Empire State manufacturing survey is the first in the series of monthly reports from the Fed regions.
This survey picked up where it last left off, in the red, but deeper.
The Econoday Consensus Estimate for the Empire State survey was +1.00 vs. an actual reading of -6.8.
As is typically the case, economists were too optimistic. the lowest estimate for the survey was 0.00.
‘Make Soros Happy’: Clinton Campaign Discusses Importance of Pleasing Billionaire in Leaked Email
“I would only do this for political reasons (ie to make Soros happy),” the email states
by Infowars.com
Info Wars
Members of Hillary Clinton’s presidential campaign discussed the political importance of pleasing billionaire George Soros in emails published by WikiLeaks.
The email, among thousands allegedly hacked from Clinton campaign Chairman John Podesta, reveals a discussion between several prominent figures – including campaign manager Robby Mook and Clinton aide Huma Abedin – regarding the organization “America Votes.”
Negative Shocks, Deeper Recessions and the Great Threat to Financial Stability
from King World News
As the world awaits the next round of monetary madness, here is a dire warning about negative shocks, deeper recession and the great threat to financial stability.
Here is what Peter Boockvar wrote today as the world awaits the next round of monetary madness: In a speech titled “Why are interest rates so low? Causes and implications”, Stanley Fischer is premising the speech on “why we should be concerned about such low interest rates.” He raises the possible explanations for why and risks that it entails. Firstly, “the economy’s long run growth prospects are dim.” Secondly, “low interest rates make the economy more vulnerable to adverse shocks that can put it in a recession” which “could therefore lead to longer and deeper recessions when the economy is hit by negative shocks.” Thirdly, “low interest rates may also threaten financial stability as some investors reach for yield and compressed net interest margins make it harder for some financial institutions to build up capital buffers.”…
Andrew Zatlin – Economy Starting to Sink?
from Financial Survival Network
According to Andrew Zatlin the economic data are starting to conflict and that could mean we are approaching an inflection point. Less people are dining out in restaurants, buying diamonds and expensive Manhattan real estate. This can’t be a good indicator for the economy. Will it turn into a recession or will the Fed come to the rescue? Lady Janet Yellen is now throwing around the notion of buying stocks, which might be good for the stock market, but will it help the overall economy?
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John Rubino – When in Doubt Go Into More Debt
from Financial Survival Network
John Rubino says that it’s all playing out as expected. Central banks are stepping on the monetary accelerator in hopes that this time really will be different. Where have we heard that before? At the same time political instability is increasing. Wikileaks is keeping up the rate of document dumps, further underscoring the systemic corruption that we’ve all known has become endemic. Have we all become jaded and immune to it? Hopefully not, but don’t count on it.
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As WikiLeaks Access to Internet is Severed, New Clinton Email Bombshell Emerges
by Pam Martens and Russ Martens
Wall Street on Parade
According to the above statement from the WikiLeaks Twitter account, a state party has intentionally cut off access to the Internet for Julian Assange, the founder and Editor-in-Chief of WikiLeaks. This happened after the ninth consecutive day of releases of emails from the hacked account of John Podesta, the chair of Hillary Clinton’s presidential campaign committee. It also comes on the heels of a potentially serious campaign finance problem for the Hillary for America committee, the primary fundraising vehicle for Clinton, according to an email released by WikiLeaks just yesterday. This would be the second time in less than six months that the Clinton campaign’s finances have come under scrutiny.
In April and May of this year, Senator Bernie Sanders’ campaign charged the Clinton campaign with serious violations of campaign finance law, including “looting funds meant for the state parties to skirt fundraising limits on her presidential campaign,” and exploiting “the rules in ways that let her high-dollar donors like Alice Walton of Wal-Mart fame and the actor George Clooney and his super-rich Hollywood friends skirt legal limits on campaign contributions.”
They Think You’re Crazy if You Expect Default. It’s Crazy if You Don’t.
by Simon Black
Sovereign Man
On May 12, 1780, John Adams wrote to his wife Abigail,
“I must study politics and war that my sons have the liberty to study mathematics and philosophy. . . in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry and porcelain.”
(… to which I would add, “so that their children can hide from the world in their safe spaces.”)
There may be no other quote that so succinctly surmises the rise and fall of empire.
In the early days, people had no illusions about the hard work and dedication required to create a civilization out of nothing.
Explain How This is Not Domestic Terrorism Please…
by Karl Denninger
Market-Ticker.org
“I mean honestly, it’s not hard to get some of these *******s to pop off. It’s a matter of showing up, to want to get into the rally, in a Planned Parenthood t-shirt. Or, Trump is a Nazi, you know. You can message to draw them out, and draw them to punch you.“
On video, from the people involved.
Hillary’s supporters and, if their own words are to be believed, explicitly linked to Hillary and her campaign.
Democrats are using trained individuals who they are sending into Republican rallies for the specific purpose of inciting violence. How is that not, may I ask, a crime?