weekly change in the Fed Balance Sheet from Deutsche Bank

I, Who Vowed to Never-Ever Short Stocks Again, Just Shorted the Entire Market

And even after today’s dip, the S&P 500 is up nearly 29% for the year, and the Nasdaq 35%, despite lackluster growth in the global economy, where many of the S&P 500 companies are getting the majority of their revenues.
Mega-weight in the indices, Apple, is a good example: shares soared 84% in the year, though its revenues ticked up only 2%. This is not a growth story. This is an exuberance story where nothing that happens in reality – such as lacking revenue growth – matters, as we’re now told by enthusiastic crowds everywhere.
Until just a couple of months ago, the touts were out there touting negative interest rates soon to come to the US and thus making stocks the only place to be. Those touts have now been run over by the reality. Now they’re touting QE4 by the Fed, or whatever. And people were looking for any reason to buy.
The unanimity of it all was astounding. I’ve seen this before, but not in this magnitude.

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Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington

Broke Billionaires (and Other Ridiculous Signs of The Top)

Uber, WeWork, Lyft, Slack, Peloton, Pinterest– there are so many tech companies, or companies masquerading as tech companies– that consistently lose tons of money. It’s absurd. In finance, a startup that eventually becomes worth more than a billion dollars is referred to as a ‘unicorn’ because it’s supposed to be so rare that it borders on impossible. And that’s basically what these companies are– donkeys with fake horns. They’re not real unicorns.
They bleed cash. Many of them have no hope of ever turning a profit. And the rock-star famous people who own them are often just “Billionaires In Name Only,’or BINOs.

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jerome-powell-pinocchio-300x208

The Fed Is Lying To Us

Things are now serious. Here in late 2019, both the Federal Reserve and the ECB are now both easing again – or back to ‘fraudulent money printing’. A fraud is meant to deceive while removing something of value from one or more parties.
When printing money, the central banks say they are doing it to protect the economy, jobs and the financial system.
But what’s actually happening is that wealth is flowing like a raging river towards a select few individuals and corporations.
It’s critical to understand that the central banks cannot print up prosperity. All they can do, being redistributive organizations, is take purchasing power away from one side and hand it to another. So the key question to be asking now is: Who’s winning and who’s losing? Well, here in the US, we already know that it’s the tippy-top 0.1% that is doing almost all of the ‘winning.’ The next 0.9% are doing pretty well, too. But by the time we get just slightly below the top 10%, we run out of “winners”.

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Peter Schiff - Great Recession's Coming

Peter Schiff: The Fed Will Try Again But It’s Not Going to Work

The Fed managed to “rescue” the economy after the financial crisis, but in the process, it created an even bigger bubble than the one that popped in ’08. This bubble is about to burst and the Fed will try to repeat the process. The difference is this time it won’t work, as Peter explains. He added: “We’re going to have a deep recession with rising interest rates and this whole thing is going to come imploding down.”

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Largarde (IMF) and Moreno (Ecuador)

Ecuador – and the IMF’s Killing Spree

For close to 40 years the IMF has weaponized its handle on the western economy through the dollar-based western monetary system, and brutally destroyed nation after nation, thereby killed hundreds of thousands of people. Indirectly, of course, as the IMF would not use traditional guns and bombs, but financial instruments that kill – they kill by famine, by economic strangulation, preventing indispensable medical equipment and medication entering a country, even preventing food from being imported, or being imported at horrendous prices only the rich can pay.

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A U.S. soldier looks through a pair of binoculars as a fire in the Rumeila oil field burns in the background in southern of Iraq, March. 30, 2003. Jin Sung-chul | Yonhap | AP

Petrodollar Warfare: The Common Thread Linking Venezuela and Iran

Part of the reason the United States continues to maintain such a heavy military presence in Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Egypt, Israel, Jordan, Yemen, Syria, and so on is that U.S. bases in these countries serve as launching pads for invasion against the next oil-bearing country that tries to defy the global financial order. Where oil is buried, in a way, the U.S. must go in order to ensure the petrodollar system is preserved.

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Recession. Revolution. Recovery.

“The biggest consequence of central bank and government policy following the financial crisis of ten years ago was that the already rich and powerful became even wealthier and more powerful. As state-sponsored inequality boomed, significant portions of the global population finally realized the whole thing is a rigged sham, and populist movements swept the globe.
All of this political energy is a direct consequence of central bank policy, entrenched oligarchy and government corruption. We’re now at the point where significant percentages of the population in countries around the world want to metaphorically burn the whole thing down. Once the economic cycle kicks in and joins the political cycle already underway, then you’ll see the real fireworks.”

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tech-bubble

The Profitless Prosperity Sector Will Collapse…

Ever since Amazon came to dominate internet retailing; there has been a mantra that profits are irrelevant (in the short to medium term) if you can rapidly gain market share. In certain sectors with massive addressable markets, this may be true, but how many billion-dollar dog-walking apps does the world need? How many supposedly ‘disruptive’ industries are simply taking a current industry, adding a bit of marketing flair, maybe an app to the front end and then massively subsidizing users to gain market share, generating explosive revenue growth along the way. If you give a product away for dramatically less than your cost, of course people will migrate to your product.

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Lloyd Blankfein, Golman Sachs Chairman

Wall Street’s Corruption Runs Deeper Than You Can Fathom

Glass-Steagall Act, signed into law as the U.S.A. Banking Act of 1933, the legislation had been crucial to safeguarding the financial industry in the wake of the Great Depression. But with its repeal in 1999, the barriers separating commercial and investment banking collapsed, creating the preconditions for an economic crisis from whose shadow we have yet to emerge. Carmen Segarra, a Wall Street whistleblower in her book “Noncompliant: A Lone Whistleblower Exposes the Giants of Wall Street” described the deep corruption in our banking and financial system and how the powerful rewards bad behaviours.

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German Police Raid Deutsche Bank Headquarters

Panama Papers: German Police Raid Deutsche Bank Headquarters Over Alleged Money Laundering, Stock Hits All Time Low

In what appears to be the latest in a string of financial crimes and scandals that have generated some $18 billion in fines since the financial crisis, prosecutors are investigating whether two employees in the bank’s wealth management division helped clients set up accounts in offshore tax havens, including the British Virgin Islands, and possibly allowed criminals to move money through these shelters, some of which may have flowed through accounts at the bank (other employees may also have been involved, prosecutors said).
According to the Financial Times the illicit transactions that two DB wealth management employees neglected to flag in 2016 alone stood at €311 million ($353 million), but people familiar with the case is almost certainly much larger, given that the suspicious activity continued for five years.

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Financial Crime

The Global Financial Crime Wave Is No Accident

From the LIBOR-rigging scandal to the offshore secrets of the Panama Papersand ‘dark money’ in the Brexit vote, it is everywhere. In my recent work with anti-corruption group Global Witness, I saw first-hand how ordinary people in some of the world’s poorest countries suffer the consequences of corruption and financial crime. We exposed suspicious mining and oil deals in Central Africa, in which over a billion dollars of desperately-needed public finances were lost offshore. The story is about the West as much as Africa. The deals were routed through a dizzying web of offshore shell companies in the British Virgin Islands, often linked to listed companies in London, Toronto and elsewhere.
For Strange, money laundering, tax evasion and public embezzlement were a result of the collapse in the 1970s of the post-war financial order.

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