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Bill Yields Turn Negative On Safe-Haven Un-Rotation

While many watch the stock market, we should take note of the bond markets, specifically the US Treasury market, as a means of more ‘real money’ sentiment.  From Zero Hedge: As stocks have vacillated in a worryingly not-straight-up manner for the last few days with today’s weakness taking the Dow and S&P 500 pre-holiday lows […]

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Five Economic Reforms Millennials Should Be Fighting For

The new generation is being hit hardest by the crisis.  Many of them took student loans only to find no jobs.  Due to the economic boom, and proliferation of online schools like Phoenix, college attendance is at an all time high.  But much of this is financed by banks.  Millennnials are coming into a different […]

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Baltic Dry Index Collapses 35% – Worst Start To Year In 30 Years

The Baltic Dry Index is one of the only significant indexes of the ‘real’ economy, as it measures the transport of physical goods.  While the US stock markets are near their all time highs, the shipment of real physical goods is down 35%, the worst start to the year in 30 years. From Zero Hedge: […]

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Transcript of Kissinger Economic Policy Meeting

The below recently declassified transcript of an internal meeting between Kissinger and his advisers shows an alarming degree of incompetence from all sides.  Remember, this was during a period of great economic turmoil, after the Nixon Shock, and the infancy of the modern Forex market as we know it. There are those who believe in […]

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In Terms of Real Stuff, the Dow’s “New High” Is Pure Illusion

From Charles Smith, Of Two Minds: The rise in equities does not mean stocks “buy” more commodities in the real world–they buy less. If the new highs in the Dow Jones Industrial Average (DJIA) are so wonderful, why does one share of the Dow-30 buy less than it did 14 years ago? What does a nominal […]

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Fed’s Bill Dudley: The Fed Doesn’t Fully Understand How QE Works

The Fed’s Bill Dudley admitted what many of us already suspected.  The Fed has no clue how QE would affect the markets.  Such a statement from a high level Fed official is unusual, and a very telling sign. From Zero Hedge: Well, it took three years, but finally the Goldman Sachs-based head of the New […]

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It’s Getting Congested: The World’s “Three Handle” Ten Year Bonds

A convergence of US/EU bond spreads sends an ominous message about the comparison between the false US recovery/QE program and the EU crisis. From Zero Hedge: Forget “the 1%-ers”, meet the 3%-ers. As US Treasuries sell-off and European bonds continues to surge, the 3% handle on government debt is becoming a crowded trade with the […]

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Indian Bitcoin Exchanges Halted As Government Shifts Capital Control Attention Away From Gold

Another government is going after Bitcoin, the anonymous virtual currency gaining momentum as traditional asset classes are questioned.  In a surprise move, the Indian government has raided one Bitcoin seller and urged citizens to not use the virtual currency: Having failed miserably in the “control” of capital outflows from the Rupee (via Gold), the India government […]

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Colossal Fraud – There are No Free Markets

There may have been a day when markets were truly free, achieving price discovery through the simple mechanism of supply and demand for capital to assets.  That day has long past, we can argue about when it happened.  But now, many markets, most notably financial markets, commodity markets, the stock market, are highly controlled.  Talk […]

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Saxo’s Outrageous positions for 2014

Saxo Bank does an annual predictions report before the new year, anticipating wildcard events that might impact the markets.  See the full report here: TF_OutrageousPredictions_2014 Here’s a few highlights: According to Saxo, there’s a chance that Germany falls into recession, while France’s CAC 40 index could plunge 40pc from this year’s peak. But the predictions […]

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