Archive for 2016

GaWD SaVe THe QUeeN…

Courtesy of ZeroHedge. View original post here.

Submitted by williambanzai7.


Bank of Japan Owns Over Half of Japanese ETFs; Why Stop There?

Courtesy of Mish.

In addition to being well on the way of cornering the Japanese bond market, the bank of Japan is even further on its way of cornering the Japanese stock market.

Bloomberg reports Bank of Japan Owns More Than Half of Nation’s ETFs.

The Bank of Japan may become an even bigger shareholder of the nation’s equities if policy makers decide to boost stimulus this week. The central bank’s holdings have been rising since it began buying Japanese exchange traded funds at the start of the decade, and now account for more than half of those ETFs.

ETF Whale

ETF Whale

Clearly 50+% is inadequate. Japan’s central bank needs to corner 100% of the market. After it does, it can then institute rules that share prices can only go up in price, never down.

For my sarcastic take on cornering the bond market, please see Bank of Japan Corners 33% of Bond Market: All Japanese Bonds, 40 Years and Below, Yield 0.3% or Less.

Mike “Mish” Shedlock

Original article here.

Bernie Sanders Is A “Testament To American Suckerdom”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Jeff Deist via The Mises Institute,

This article from the Free Beacon about Bernie Sanders being kicked out of a “hippie commune” in 1971 reads like something from The Onion. Bernie, age 30(!) at that point, was like a bad college roommate who preferred late night political discussions to housework and cleaning. And based on uncontested reports of his nonexistent career path, we can safely assume he contributed nothing to the communal finances.

That Bernie Sanders – a shiftless layabout who openly joined socialist and communist groups – can even sniff the US presidency is a testament to American suckerdom and an enduring fetish for collectivism among rich westerners.

But the question of communes is an interesting one for libertarians. Under what conditions, with what people, and for how long can collectivism work? Economics helps explain why communal living (beyond family groups) tends to fail because of bad incentives, but it alone doesn’t explain the political and sociological elements. 

Voluntary communal living is not per se impossible, in small homogeneous groups with close-knit identities and deeply shared values. Israeli kibbutzim are one keen example, although most today employ some elements of private property ownership and differing wages for various jobs. Amish and Mennonite communities in the US are another, with the interesting feature of a “rumspringa” period where young people are permitted to sample modern life before deciding to commit to the church and community.    

Milton Friedman, writing in Chapter 5 of Free to Choose, had this to say about kibbutz communities in Israel:

Egalitarians in the United States may object that the fewness of communes and their fragility reflect the opprobrium that a predominately “capitalist” society visits on such communes and the resulting discrimination to which they are subjected. That may be true for the United States, but as Robert Nozick has pointed out, there is one country where that is not true, where, on the contrary, egalitarian communes are highly regarded and prized. That country is Israel.

Everyone is free to join or leave a kibbutz, and kibbutzim have been viable social organizations. Yet at no time, and certainly not today, have more than about 5 percent of the Jewish population chosen to be members of a kibbutz. That percentage can be regarded as an upper estimate of the fraction

continue reading

Another Indiana Poll Goes Trump’s Way But Silver’s Secret Sauce Projects Cruz Will Win

Courtesy of Mish.

A third Indiana poll has Donald Trump in the lead once again.

The latest poll is by You-Gov. It has Trump 40%, Cruz 35%, and Kasich 20%.

In the three relevant polls, Trump leads by +8, +5, and +6 percentage points over Ted Cruz.

Three Indiana Polls

Indiana polls 2016-04-24

The results of the latest poll has Trump’s odds of winning dropping in both Nate Silver’s “Polls Only” forecast and his “Secret Sauce” odds.

Silver’s Polls Only Projection

Indiana Polls Only 2016-04-24

Continue reading here…

Why Voters Will Stay Angry

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

From the supporters of Donald Trump to the street protesters of southern Europe, voters around the world are mad as hell. Inequality, immigration, and the establishment’s perceived indifference are firing up electorates in a way that’s rarely been seen before. As the following charts from Bloomberg show, the forces shaping the disruption of global politics have been building for years and aren’t about to diminish…

The world’s middle classes are getting poorer

The share of wealth owned by the middle class declined in every part of the world on a relative basis

U.S. workers’ share of income has dropped to near the lowest since World War II

And in the past century, the rich have gotten markedly richer

Incomes in Europe’s southern crisis countries have fallen since 2009, while rising elsewhere

Things are even worse for young people

In Spain and Greece, unemployment among those under 25 is still close to 40 percent despite a slight improvement in recent years

U.S. student debt is soaring, while median pay for recent college graduates has barely budged

Parents in major western countries are increasingly worried about their children’s prospects

Immigration and war are compounding the anxiety

European countries are seeing unprecedented flows of refugees seeking asylum and have little power to stop them within the passport-free zone

As Syria’s implosion sends millions of refugees toward the EU, more voters choose immigration as a top concern

Americans worry about immigration more than they did 14 years ago

All this is causing politics to fragment

Last year, only 19% of Americans trusted their government “just about always” or “most of the time” – down from 54% after the 9/11 attacks

As measured by historical voting in the U.S. House of Representatives, the two U.S. political parties have moved away from the center in the past 40 years

It’s the same picture in Europe as distrust of government has surged, to a high of 84% in Spain

That’s all helping insurgent parties storm the region’s national parliaments

Political newcomers have gained far greater share in recent elections, and established parties in some cases have withered away

Asia is bucking the trend. So far

Asia has largely been exempt from the West’s discontent, in…
continue reading

The British Response To Obama “Why Should We Take Advice From A President Who Has Surrendered The World To Chaos?”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Following Obama’s stunning foray into UK politics with his anti-Brexit oped (which surprised both the pro and anti-Brexit camp as there was little to be gained from Obama’s gracious entrance of an elephant in a UK political China store) on Thursday evening, one person who had a rather visceral reaction was London Mayor Boris Johnson who slammed Obama’s “hypocritical” Brexit diatribe and accused Obama “ancestral dislike of the British empire – of which Churchill had been such a fervent defender” on being part-Kenyan.

Needless to say at this point any rational dialog ended, and even though Johnson had many valid points, they all got lost in the quasi ad hominem din.

However, a far more tempered op-ed appeared in The Telegraph by Janet Daley, one in which she does not invoke Obama’s African heritage, but rather his achievements, or lack thereof, in the global arena, and asks point blank:”Why should we take advice from a president who has surrendered the world to chaos?

Why indeed?

This is her take:

I wonder who in Downing Street briefed Barack Obama’s team on the wording of his friendly warning to the British. Somebody obviously pointed out that the population of this country retained a quaint obsession with the Second World War, and would therefore treat any reference to the glorious dead as irreproachable. So the President invoked the European graves of those American servicemen who died to protect – well, what exactly?

I thought it was the democratic values and reverence for national independence that Britain shared with the US. Did Mr Obama have any sense at all that what he was now urging the British electorate to accept was precisely the surrender of those sacred principles of democratically accountable government and self-determination for which the combined American and British forces had made their ultimate sacrifice?

Could this bizarre intervention have been more cynical or wilfully misinformed? In the end, it seemed to come down to trade advantages – to what might once, back in the day, have been called the global interests of US corporate capitalism. Mr Obama even made specific reference in his article in Friday’s Daily Telegraph to the importance of current negotiations on the Transatlantic Trade and Investment Partnership (TTIP), which would reduce barriers to US business interests in the…
continue reading

Chinese Dragon: Breathing Credit Fumes

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Eugen von Bohm-Bawerk via,

Economic forecasting, no matter how complex the underlying model may be, is essentially about extrapolating historical trends. We showed last week how economic models completely fail to pick up on structural shifts using Japan as an example. On the other hand, if an economy doesn’t really change much, as in the case of Australia over the last thirty years, model “forecast” are generally quite accurate. However, spending millions of dollars to do the job of a ruler doesn’t seem like wise resource allocation to us. That said there’s obviously a very limited market for model based GDP forecast and most of them are not exchanged among pure market based players, but rather between governmental funded agencies. True, Wall Street spews out their sell-side GDP propaganda on a regular basis, but claiming international banking is anything akin to a free market is absurd. GDP forecasting is something only wasteful organizations do and that should tell you all you need to know about these exercises in futility. 

IMF Forecast for Australia since 1990

Take the latest IMF forecast for China as a half decent example. According to the IMF, the credit junkie known as China, which needed one trillion dollar in fresh credit in the first quarter alone to create GDP “growth” of somewhere between 6.3 and 6.7 per cent (265 billion dollars for the quarter) will continue to race ahead with six per cent growth for the foreseeable future. The Chinese economy is 100 per cent dependent on ever more money and credit expansion to maintain its completely unsustainable momentum and will very soon come crashing down. And by the way, China’s reported GDP numbers are obviously grossly overstated anyway.

China TSF Q12016

Peddling IMF-fiction though becomes even clearer when we reverse engineer their GDP forecast based on traditional growth models. We know the Chinese labour force is shrinking and the millions of underemployed peasants which used to be the backbone of China’s success are close to exhausted. As the labour force contracts and more resources are spent on taking care of the unproductive members of society savings, and hence investments, will also contribute less to growth going forward.

So how do IMF economists come up with their 6 per cent forecast? Simple, they add to the total factor productivity assuming China with…
continue reading

Ron Paul Asks “What Did Fed Chairman Yellen Tell Obama?”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

As we reported yesterday, following the meeting held between Obama and Yellen last Monday, one reader tried to get some additional information on what was exchanged between the two most important people in the world beyond the cursory White House statement which is reposted below:

The President and Chair Yellen met this afternoon in the Oval Office as part of an ongoing dialogue on the state of the economy. They discussed both the near and long-term growth outlook, the state of the labor market, inequality, and potential risks to the economy, both in the United States and globally. They also discussed the significant progress that has been made through the continued implementation of Wall Street Reform to strengthen our financial system and protect consumers.

Dissatisfied with the token boilerplate language, the reader requested the minutes from said meeting. The Fed’s response: “we don’t keep those.

It goes without saying that with both the White House and the Fed eager to prevent the disclosure of what was said leaking into the public arena, that it had to be quite important.

How improtant? Here is Ron Paul with his own take on the question of:

What Did Fed Chairman Yellen Tell Obama?

 Last week, President Obama and Vice President Biden held a hastily arranged secret meeting with Federal Reserve Chairman Janet Yellen. According to the one paragraph statement released by the White House following the meeting, Yellen, Obama, and Biden simply “exchanged notes” about the economy and the progress of financial reform. Because the meeting was held behind closed doors, the American people have no way of knowing what else the three might have discussed.

Yellen’s secret meeting at the White House followed an emergency secret Federal Reserve Board meeting. The Fed then held another secret meeting to discuss bank reform. These secret meetings come on the heels of the Federal Reserve Bank of Atlanta’s estimate that first quarter GDP growth was .01 percent, dangerously close to the official definition of recession.

Thus the real reason for all these secret meetings could be a panic that the Fed’s eight year explosion of money creation has not just failed to revive the economy, but is about to cause another major market meltdown.

Establishment politicians and economists find the Fed’s failures puzzling. According…
continue reading

White Lies Matter

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Matthew Continetti via,

How bad is Hillary Clinton’s image? This bad:

Fifty-six percent of Americans view her unfavorably, according to the Huffington Post pollster trend.

One-third of New York Democratic primary voters say she is neither honest nor trustworthy.

Her image, writes Dan Balz, “is at or near record lows among major demographic groups.”

Like, all of them.

Among men, she is at minus 40. Among women, she is at minus 9. Among whites, she is at minus 39. Among white women, she is at minus 25. Among white men, she is 17 positive, 72 negative. Her favorability among whites at this point in the election cycle is worse than President Obama’s ever has been. . . . Among African Americans nationally the NBC–Wall Street Journal poll shows her with a net positive of 51 points. But that’s down 13 points from her first-quarter average and is about at her lowest ever. Among Latinos, her net positive is just two points, down from plus 21 points during the first quarter.

Emphasis mine. No doubt some of this degradation is related to a primary that has turned out to be much more competitive than Clinton imagined. But it’s also worth asking why that campaign has lasted so much longer than we assumed.

A lot of the reason is Clinton: her tin ear, her aloofness, her phony eagerness to please, her suspicion of the press and of outsiders, her — let us say –complicated relationship with the truth, the blithe way in which she dissembles and deceives.

Over the course of three decades in public life Hillary Clinton has misspoken and misled the public and mismanaged herself and her team to such a degree that voters cannot help noticing. Yes, many of her falsehoods are white lies. But white lies accumulate. They matter. Not only do they harm the truth. They are turning Clinton into one of the least popular candidates in history.

Since 1998 Clinton has blamed her poor reputation on the vast right-wing conspiracy. Whitewater, Travelgate, Filegate, the health-care disaster — it was all the fault of the Republicans. What’s forgotten is that Clinton has been lying in the service of her ambitions — most notably by protecting her husband from the truth of his infidelities — since long before Bill ran for president. Nor
continue reading

China’s Brave New Math: 24 Of 28 Provinces Report Higher GDP Than National Average

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

There is a saying that the whole is greater than the sum of its part. This may be true everywhere, except in China, where the total is whatever some goalseek machine decides it is.

We first saw China’s flagrant manipulation of data when the nation released its “better than expected” trade “data” two weeks ago. As shown in the chart below, when it comes to the biggest contributor, imports from Hong Kong, it was beyond simply grotesque and had entered the sublimely ridiculous.

Then last weekend, following the release of China’s official national GDP print of 6.7%, China also released its sequential GDP growth of 1.1% which, when annualized, one got a number of 4.5%.  Just as bad, based on the accumulated quarter-on-quarter data over the last year, annual growth in 1Q was just 6.3% – substantially below the NBS’s 6.7% reading for year-on-year growth.

Then over the weekend, China’s farcical “data” entered the twilight zone, when 24 of 28 Chinese province-level regions reported GDP that was higher than the national figure of 6.7%.

As China Radio International reports, 28 of 32 Chinese provinces, municipalities and autonomous regions have released their first-quarter GDP growth figures, with Chongqing and the Tibet Autonomous Region taking the lead.

24 of the provincial-level regions reported rates above the national figure of 6.7%, while places like Jilin found themselves at the bottom of the list with a 6.2% growth. Two other provinces in the country’s northeast, Liaoning and Heilongjiang, have not revealed their numbers yet as well as central Shanxi. 

The immediate spin was even more hilarious: not even stepping for second to appreciate that 85% of provinces “reported” numbers that were greater than the average, a professor Liu Yuanchun at the Renmin University of China said “the figures show the government’s stimulus policies are producing results, which signal stable growth.”

Actually, what the figures show is that China not only continues to fabricate its data with every passing quarter, but it has gotten to the point where it no longer cares if the data makes no sense at all and the government is exposed lying with every incremental data release.

Considering China once again is desperate to recreate its massive debt-fueled capacity glut, one would think…
continue reading


Phil's Favorites

Powell Spews Baby Poop In Attempt To Reassure Investors


Powell Spews Baby Poop In Attempt To Reassure Investors

Courtesy of  

Let’s look at a few of Chairman Pow’s words at yesterday’s press conference. Please read them and tell me whether this sounds to you like a man who doesn’t understand what he’s doing. Or if you think he’s deliberately pulling words out of his ass, stringing them together, and spewing them from his mouth in an effort to gaslight the investing public.

I’ll take the latter. The Fed is in the propaganda business. It knows what it is doing. Double talk, lies, and utter bullshit are its stock-...

more from Ilene

Lee's Free Thinking

Powell Spews Baby Poop In Attempt To Reassure Investors


Powell Spews Baby Poop In Attempt To Reassure Investors

Courtesy of  

Let’s look at a few of Chairman Pow’s words at yesterday’s press conference. Please read them and tell me whether this sounds to you like a man who doesn’t understand what he’s doing. Or if you think he’s deliberately pulling words out of his ass, stringing them together, and spewing them from his mouth in an effort to gaslight the investing public.

I’ll take the latter. The Fed is in the propaganda business. It knows what it is doing. Double talk, lies, and utter bullshit are its stock-...

more from Lee

Zero Hedge

Visualizing The World's Stock Market's Performance For The Past 30 Years

Courtesy of Jeff Desjardins, Visual Capitalist

Charting the World’s Major Stock Markets

Most investors around the world are familiar with the S&P 500 index.

Not only is it the most widely accepted barometer of U.S. stock market performance, but it’s also been on a 10-year bull run, now sitting at all-time highs near 3,170.

This week, we chart those historical returns, and then use the U.S. benchmark as a backdrop to compare other major stock markets around the world, such as those in Europe, Asia, and Canada.

Putting Them All at Scale

One challenge in comparing global markets directly is that all indices are on arbitrary scales. ...

more from Tyler

Chart School

Funds are getting ready to move out of USA

Courtesy of Read the Ticker

Just before the hang over in the US equity markets, money will move and take their well earned gains else where. Here is why.

More from RTT Tv

Charts in video.

US is in the late cycle boom.

Click for popup. Clear your browser cache if image is not showing.

US stock market with the US dollar, they have risen together from 2012. A change of this will force money to move.


more from Chart School

Kimble Charting Solutions

Euro Breakout In Play? Gold Bulls Sure Hope So!

Courtesy of Chris Kimble

The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullis...

more from Kimble C.S.

Insider Scoop

8 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

  • Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock surged 36.4% to $137.00 during Friday's pre-market session. The market value of their outstanding shares is at $6.1 billion. The most recent rating by Janney Capital, on December 13, is at Buy, with a price target of $175.00.
  • GlaxoSmithKline, Inc. (NYSE: GSK) shares surged 1.1% to $46.44. The market value of their outstanding shares is at $112.9 billion. According to the most recent rating by UBS, on November 21, the current rating is at Buy.
  • AstraZeneca, Inc. (NYSE: ... more from Insider

Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...

more from Bitcoin

Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market


For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...

more from Our Members

The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...

more from Tech. Traders


Why telling people with diabetes to use Walmart insulin can be dangerous advice

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


Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...

more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:


more from M.T.M.


Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


more from Promotions

About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>

As Seen On:

About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>