Posts Tagged ‘Jesse’s Café Américain’

Enjoying Coffee in the Lodge with Jesse


Enjoying Coffee at the Lodge with Jesse 

By Ilene

coffee at the lodge with JesseI have long been a fan of Jesse’s Café Américain. Jesse is a brilliant writer and a deep thinker who uniquely transcends politics, easily seeing through lies and disinformation. He has a great feel for what really matters, and the courage to speak out about it.  Jesse and I have spoken before about the economy, markets and politics, and being at a crossroads once again, it was a perfect time to catch up. 


Ilene: Hi Jesse, since our last interview, I would guess that we’d both agree that nothing has been done to clean up the financial system – the banks and government interconnectedness, conflicts of interest, and out-and-out fraudulent activities.  Are things better or worse, or in line, with what you were expecting over a year ago?

Jesse: I think things are progressing in line with what I had expected, with the Fed and the government trying to prop up an unsustainable status quo by monetizing debt.  I am still a little shocked by the brazen manner in which the financial markets are being conducted and regulated, and the news is reported in the US. It is one thing to hold a theory that says something will happen, but it is quite another to see it actually happening, and so blatantly, almost without a word of protest.

Ilene: How do you view our financial system and the global financial system now, with no progress towards any kind of reform?

Jesse: The US is now being run by an oligarchy, with lip service being paid to the electorate in allowing the people to vote for the candidates that the parties and the powers will put forward.  There will be no recovery for the middle class until they assert themselves. I know I have stated this often in my tag phrase, “The banks must be restrained…” But it is the case.

There are areas of resistance to this trend on what one might call ‘the fringes of Empire,’ those client states which have been ruled by powerful cliques with the support and the protection of the US.  Although certainly not a great analogy, it does remind one of…
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JP Morgan’s Commodities Trading Head Blythe Masters to Troops: “Don’t Panic”


JP Morgan’s Commodities Trading Head Blythe Masters to Troops: "Don’t Panic"


Note to Blythe Masters: Sorry to hear about your losses in the coal market because of a ‘rookie error’ in taking on overlarge positions, but an epic short squeeze is coming for your massive and untenable positions in silver and gold, and hell is coming with it.

And the vampire squid and its minions are going to wrap themselves around your neck, and inexorably suck the life from you, while the hedge funds lick your wounds. Your protectors in the government will not even return your calls, because they will be running for their own lives away from the disaster that you created, denying all knowledge of it, any of it.

And then, by all means, you may panic.

JPMorgan’s Masters Urges No `Panic’ as Commodities Unit Slips
By Dawn Kopecki
Aug 03 2010

Blythe Masters, JPMorgan Chase & Co.’s head of commodities, sought to reassure her team on an internal conference call after “extremely difficult” dismissals, defections and a first half in which some results were as much as 20 percent below expectations.

“Don’t panic,” she said in summing up the 35-minute call, a recording of which was obtained by Bloomberg News. “No one’s going to get screwed. We’re not going to do crazy things on compensation at the end of the year.”

Masters, who was named to run the business in late 2006, said the bank began dismissals on July 21, a day before the call, to trim overlap after buying parts of RBS Sempra Commodities LLP. The bank cut less than 10 percent of the combined front office, even as the oil unit lost “key people” who needed to be replaced, she said. She was discussing results with top executives after “we made a bit of

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Nothing Was Sacred: The Theft of the American Dream

Jesse wrote a terrific opening post for Phil’s Weekend article and popular R.E.M. song "It’s The End of the World as We Know It." - Ilene 

Nothing Was Sacred: The Theft of the American Dream


America must decide what type of country it wishes to be, and then conform public and foreign policy to those ends, and not the other way around. Politicians have no right to subjugate the constitutional process of government to any foreign organization.

Secrecy, except in very select military matters, is repugnant to the health of a democratic government, and is almost always a means to conceal a fraud. Corporations are not people, and do not have the rights of individuals as such.

Banks are utilities for the rational allocation of capital created by savings, and as utilities deserve special protections. All else is speculation and gambling. In banking, simpler and more stable is better. Low cost rules, as excessive financialisation is a pernicious tax on the real economy.

Financial speculation, as opposed to entrepreneurial investment, creates little value, serving largely to transfer wealth from the many to the few, often by exploiting the weak, and corrupting the law. It does serve to identify and correct market inefficiencies, but this benefit is vastly overrated, because those are quickly eliminated. As such it should be allowed, but tightly regulated and highly taxed as a form of gambling.

When the oligarchy’s enablers, hired help is the politer word, and assorted useful idiots ask, "But how then will we do this or that?" ask them back, "How did we do it twenty years ago?" Before the financial revolution and the descent into a bubble economy and a secretive and largely corrupted government with a GDP whose primary product is fraud.

Other nations, such as China, are surely acting for their own interests, and in many cases the interests of their people, much more diligently and effectively than the kleptocrats who are in power in Washington and New York these days. How then could we possibly subvert the Constitution and the welfare of the people to unelected foreign organizations? If this requires a greater reliance on self-sufficiency, then so be it. America is large enough to see to its own, as the others see to theirs.

Economics will not provide any answers in and of itself. Economics without an a priori policy and morality, without a guiding principle…
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SP 500 September Futures Daily Chart

SP 500 September Futures Daily Chart


Stocks were rallying today on optimism about earnings based on last night’s results from Alcoa and CSX. 

After hours tonight Intel announced better than expected earnings and raised its forecasts. This caused the futures to gap open when they resumed trading. Here is what they look like now, after hours.

This has been a wicked rally off the lows. It *might* be getting towards a short term top, possibly tomorrow, but I would not want to get in front of it. Wait and see how the rally progresses.


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Obama to Tell the G20 to Fix the US By Changing the World

Obama to Tell the G20 to Fix the US By Changing the World

Courtesy of Jesse’s Café Américain

obamaWhen you can’t run a state, run for President. When you can’t run your country, attempt to run the world.

This directive to the G20 is probably going to make the Organizer-in-Chief’s recent pathetic sermonette on altruism and self-denial to Wall Street seem effective by comparison.

Unless he is as prime an example of boobus Americanus as he appears to be by his actions, we suspect that this proposal is intended merely to be an unachievable blue sky diversion from a genuine agenda for reform and action, which might be an annoying hindrance to Obama’s constituents on Wall Street. It has been estimated that the reforms on the table from Europe, for example, might cut the trading revenues at Goldman Sachs by a third.

What Obama does not say, and perhaps does not realize, is that the majority of the problems that exist in the US’s imbalanced trade relationships is the position of the US dollar as the world’s reserve currency.

Owning the reserve currency is a significant benefit for your government and financial sectors, but it makes your manufacturing and productive economy the target of every mercantilist command economy around the globe that is by definition hungry for dollars.

Obama wants G20 to rethink global economy

By Jeff Mason and Dave Graham
Mon Sep 21, 2009 12:29am EDT

WASHINGTON/BERLIN (Reuters) – U.S. President Barack Obama said on Sunday he would push world leaders this week for a reshaping of the global economy in response to the deepest financial crisis in decades

The summit will be held in the former steelmaking center of Pittsburgh, Pennsylvania, marking the third time in less than a year that leaders of countries accounting for about 85 percent of the world economy will have met to coordinate their responses to the crisis.

The United States is proposing a broad new economic framework that it hopes the G20 will adopt, according to a letter by a top White House adviser.

Obama said the U.S. economy was recovering, even if unemployment remained high, and now was the time to rebalance the global economy after decades of U.S. over-consumption. (The recovery is as tenuous as Mr. Obama’s prospects for a second term – Jesse)

"We can’t go back to the era where
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SP Futures Hourly Chart at 1 PM

SP Futures Hourly Chart at 1 PM

Courtesy of Jesse’s Café Américain

The US equity markets have bounced back to key resistance on a much great than expected drawdown in oil inventories.

The trade today seems very technical (ie short squeeze by the 100 million dollar men) and lacking in conviction.

Let’s see how the markets deal with this and then trade accordingly. Volumes remain light, and may do so until September. However, if anything ‘happens’ this market may flop as convincingly as Obama’s "change" platform.

Jesse's Chart





The US Is Not A Low-Tax Jurisdiction

By Mauldin Economics. Originally published at ValueWalk.

Trump has been running his mouth about how the US is one of the highest-taxed countries in the world. This really makes the journalists upset. They say that it’s false. Every time he says this, they have a conniption.

How can it be true? How can we have higher taxes than Sweden—where taxes are so high that everything is free, there are ponies everywhere, and everyone is happy?

It depends on how you measure it.

The Wall Street Journal just posted a piece about this, offering the statistic (that most journalists use) that the US collects about 26% of GDP in taxes, compared to an average of 34.4% for other industrialized countries.

First, the fact that we collect 26% percent of GDP in taxes is crazy. For years, even decades, the total take we would end up with was around 20...

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Zero Hedge

Soros Expects "Landslide Popular Vote Victory" For Trump But President Clinton Is A "Done Deal"

Courtesy of ZeroHedge. View original post here.

The following shocking clip of George Soros mumbling through an interview with a Bloomberg reporter shows him admitting that:

"it's all going to lead to a landslide victory for Donald Trump... in the popular vote.... not in the electoral vote because there paid political elements/announcers will have a big role and so the electoral vote will be closer..."

Was it a slip of the tongue by a boasting billionaire to a pretty blonde television reporter? We will never know what he was stumbling to say, but from the words he did mumble, ...

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Chart School

Tech Hold Breakout,.but S&P Wedge Bound

Courtesy of Declan.

It was a mixed day for indices. Large Caps remain bound by wedge support/resistance, but Tech broke upside yesterday from similar wedges and held those breakout today.

There was little change for the S&P over the last couple of days. The one technical change was the MACD trigger 'buy' as other technicals stayed on the bearish side.

Meanwhile, the Nasdaq cleared wedge resistance yesterday, and was able to hang on to the breakout despite today's loss. It too enjoyed a MACD trigger 'buy', but had an On-Bal...

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Phil's Favorites

Kansas Ends Bad Economic News by Not Reporting It

In evaluating the results of real-life economic policy experiments it is important to measure them. Avoiding this step in the experimental process detracts from what could be a valuable learning experience, which could, potentially, put some incorrect theories to rest. For instance, consider Kansas. 


“What’s measured, improves.”

So said management legend and author Peter F. Drucker about the value of using metrics to define specific objectives within an organization.

Drucker is no longer with us; if he were, he might want ...

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Kimble Charting Solutions

U.S. Dollar Rally: A tale of two chart patterns

Courtesy of Chris Kimble.

This article was originally written for See It Market.

The U.S. Dollar Index has been trading in a wide consolidation pattern over the last 18 months or so.  But after the recent U.S. Dollar rally, that consolidation has formed two distinct chart patterns.

And as you may have guessed… one is bullish while the other is bearish.



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Market News

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Financial Markets and Economy

Oil Rises as OPEC Chief Barkindo Seeks to Resolve Output Plan (Bloomberg)

Crude advanced as OPEC’s secretary-general was due to visit Baghdad on Tuesday for talks aimed at resolving a deal on output after Iraq said it should be exempt from planned cuts.

Iron Ore Hoisted on Coat-Tails of Coal’s Record Rally in China (Bloomberg)

Iron ore is surging thanks to its bulk-commodity compatriot, coal. Iron ore futures in Singapore ad...

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Swing trading portfolio - week of October 24th,2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Members' Corner

World Series 2016

Courtesy of Nattering Naybob.

The good news... Waiting since 1945, after 71 years, the Chicago Cubs have a chance to win their first WS since 1908.  The bad news... The Cubs face an Indian's team that has been waiting since 1948 to win a WS and last appeared in 1997.

CLE swept BOS, and took out TOR who had swept TEX, and has only lost ONE post season game.  That being Game 4 ALCS at TO, yet, during that series, no Indians starting pitcher made it through more than six innings. 

In fact, Trevor Bauer, only lasted two outs during his one start, leaving Merritt and the pen to bear the burden of over eight innings of baseball.  Mid range reliever Merritt notched a victory in that game with ERA 1.80; WHIP 0.60 with 5 IP. 

What does all that tell you? Oddly enough, without Carr...

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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...

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Digital Currencies

Gold, Silver and Blockchain - Fintech Solutions To Negative Rates, Bail-ins, Currency Debasement and Cashless

Courtesy of ZeroHedge. View original post here.

By Jan Skoyles

I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.


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Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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