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Friday, August 29, 2014

America, IF Terrorists Cross the Boarder from Mexico to ""KILL"" Americans........................YOU have ONLY Obama and the Fricking ""LIBERALS"" in Congress to BLAME for Failing to Secure the Boarder with Mexico!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

""LIBERALS"" are the TRUE ***Weapons of MASS Destruction***!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Online posts show ISIS eyeing Mexican border, says law enforcement bulletin
By Jana Winter

EXCLUSIVE: Social media chatter shows Islamic State militants are keenly aware of the porous U.S.-Mexico border, and are “expressing an increased interest” in crossing over to carry out a terrorist attack, according to a Texas law enforcement bulletin sent out this week.

“A review of ISIS social media messaging during the week ending August 26 shows that militants are expressing an increased interest in the notion that they could clandestinely infiltrate the southwest border of US, for terror attack,” warns the Texas Department of Public Safety "situational awareness" bulletin, obtained by

The three-page bulletin, entitled “ISIS Interest on the US Southwest Border” and dated Aug. 28 was released to law enforcement on Thursday.

“Social media account holders believed to be ISIS militants and propagandists have called for unspecified border operations, or they have sought to raise awareness that illegal entry through Mexico is a viable option,” states the law enforcement bulletin, which is not classified. 

Judicial Watch: Feds’ Bulletin Describes Threat of Imminent Terrorist Attack on Southern Border
By Andrew C. McCarthy 

For those of us who’ve been raising alarms about both the jihadist threat and the national-security vulnerability created by the Obama administration’s non-enforcement of the immigration laws, this is not a surprise — particularly less than two weeks before September 11. But it is nonetheless jarring to read. Judicial Watch has just put out this statement:

""***ILLEGAL***"" Immigration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 
This Sanction WAR "IS" about to get REAL Ugly!!!!!!!!!!!!!!!!!!!!!!!!!!!! You Can BET Putin WILL Respond!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

U.K. Wants EU to Block Russia From SWIFT Banking Network
By Robert Hutton and Ian Wishart

The U.K. will press European Union leaders to consider blocking Russian access to the SWIFT banking transaction system under an expansion of sanctions over the conflict in Ukraine, a British government official said.

The Society for Worldwide Interbank Financial Telecommunication, known as SWIFT, is one of Russia’s main connections to the international financial system. Prime Minister David Cameron’s government plans to put the topic on the agenda for a meeting of EU leaders in Brussels tomorrow, according to the official, who asked not to be named because the discussions are private.

“Blocking Russia from the SWIFT system would be a very serious escalation in sanctions against Russia and would most certainly result in equally tough retaliatory actions by Russia,” said Chris Weafer, a senior partner at Moscow-based consulting firm Macro Advisory. “An exclusion from SWIFT would not block major trade deals but would cause problems in cross-border banking and that would disrupt trade flows.”

Russia Sanctions 
Once Again It's TIME to Throw DOWN the ""BULLSHIT CARD""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

To YOU Fricking ""BIG Government"" Types and YOU Fucking BANKERS.........................The American Taxpayer has Already BAILED your ASS Out at least 3 Times since 1989 and it NOW Time that YOU ASSHOLES do what "IS" Needed to Protect Yourselves from Cyber Thieves of SHUT Down the Use of the INTERNET and GO Back to the WAY Banking was DONE 30 Years Ago before the Internet........................MAIL and Human Clearing of Transactions through the Federal Reserve System. It Worked Just FINE back then and IF the THREAT "IS" this CRAVE then.........................Houston ""*****YOU*****"" have a Problem!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

America, IT just might be TIME to PULL the PLUG on the INTERNET..........................For the Sake of the Children and Hillary's Fricking Village!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Cyber-Terror Bailout: They're Already Talking About It, and You May Be on the Hook
By Carter Dougherty

Bankers and U.S. officials have warned that cyber-terrorists will try to wreck the financial system’s computer networks. What they aren’t saying publicly is that taxpayers will probably have to cover much of the damage.

Even if customers don’t lose money from a hacking assault on JPMorgan Chase & Co., the episode is a reminder that banks with the most sophisticated defenses are vulnerable. Treasury Department officials have quietly told bank insurers that in the event of a cataclysmic attack, they would activate a government backstop that doesn’t explicitly cover electronic intrusions, two people briefed on the talks said.

“I can’t foresee a situation where the president wouldn’t do something via executive order,” said Edward DeMarco, general counsel of the Risk Management Association, a professional group of the banking industry. “All we’re talking about is the difference between the destruction of tangible property and intangible property.”

Cyber Attack 

TIME to ""SHORT the EURO""!!!!!!!!!!!!!!!!!!!!!!!!!!


Goldman Slashes EURUSD Forecast To 1.20


Having flip-flopped from forecasting EUR strength for the next 12 months in April (target 1.40), Goldman has rapidly ratcheted down its expectations for the flailing currency to 1.30 previously and now forecasts EURUSD at 1.20 in 12 months. As Goldman notes, "because we believe the dynamics of the Euro have fundamentally changed and because we expect cyclical outperformance of the US, a prolonged period of Euro undervaluation can be expected and this is reflected in our longer-term forecasts." Trade accordingly...


Via Goldman Sachs, 

TIME to ""SHORT the EURO""!!!!!!!!!!!!!!!!!!!!!!!!!! 

Iran says it has begun arming West Bank
Commander of Basij militia says Tehran’s efforts will lead to Israel’s annihilation
By AFP, AP and Times of Israel staff

Iran said Wednesday it was stepping up efforts to arm West Bank Palestinians for battle against Israel, with Basij militia chief Mohammad Reza Naqdi saying the move would lead to Israel’s annihilation, Iran’s Fars news agency reported.

“Arming the West Bank has started and weapons will be supplied to the people of this region,” Naqdi, who heads the nationwide paramilitary network, said.

“The Zionists should know that the next war won’t be confined to the present borders and the Mujahedeen will push them back,” he added. Naqdi claimed that much of Hamas’s arsenal, training and technical knowhow in the recent conflict with Israel was supplied by Iran.

On Monday Iran’s state TV broadcast footage showing a purported Israeli drone that the country’s Revolutionary Guard says it shot down near an Iranian nuclear site, and Tehran said it would retaliate by supplying weapons to Palestinians in the West Bank.

Arabic-language Al-Alam aired a brief video on Monday filmed in a desert area showing what the channel said were parts of the drone. A TV scroll said the drone was downed on Saturday.

This "IS" just a SMALL Sample of what I have Found this morning that PROVES ""BIG Government"" has totally SCREWED UP....................................Again in the WEST. The Economic Conditions of Europe and America are going to be Leveraged by the ASSHOLES of the World. Expect Ukraine to get MUCH Worse, The Middle East "IS" going to be Consumed by >""Civil WAR""< and China "IS" going to begin it Imitation of What RUSSIA IS doing in the South China SEA in 2015. WAR "IS" Coming ALL Thanks to the ""LIBERALS"" in America and the Socialists in Europe!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Israel vs. Iran....................................It's going to HAPPEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Obama's Anti-ISIS Strategy Summarized In 1 Cartoon

"Do nothing stupid..." 

You ALL Especially You Folks in Europe want to Listen to what ""Charles Krauthammer"" has to say in this Segment of Special Report!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

No US strategy for dealing with ISIS in Syria yet?

Reaction from the 'Special Report' All-Star panel 

Vladimir Putin: Don't mess with nuclear-armed Russia
Vladimir Putin attending the Seliger 2014 National Youth Forum

Russia's president, speaking at a pro-Kremlin youth camp at a lake near Moscow, said "it's best not to mess with us," adding "I want to remind you that Russia is one of the leading nuclear powers"
By Colin Freeman

 Vladimir Putin raised the spectre of nuclear war with the West on Friday as he defied international condemnation over his decision to send thousands of Russian troops and heavy armour into Ukraine.

Accused by Europe and Nato of launching a full-scale invasion of eastern Ukraine, the Russian leader boasted to a group of Russian youngsters that "It's best not to mess with us."

In language not seen since the height of the Cold War, he told his audience: "Thank God, I think no one is thinking of unleashing a large-scale conflict with Russia. I want to remind you that Russia is one of the leading nuclear powers."

Mr Putin's comments, made during a visit to a pro-Kremlin youth camp on the banks of a lake outside Moscow, will horrify Western governments as they try to bring Russia into check. Even during the height of Cold War hostilities, few Kremlin leaders ever resorted to the direct mentions of Russia's nuclear arsenal.

He made his remarks as European leaders prepare to gather tomorrow for an emergency summit to discuss further sanctions on Moscow over the appearance in the last few days of more than 1,000 regular Russian troops in eastern Ukraine.

UKRAINE...........................Thanks to Obama "IS" Totally FUCKED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

I'm Guessing that Rush Limbaugh "IS" going to Open with a Blistering Attack on Obama's Press Conference and the FACT He Doesn't have a PLAN to Deal with ISIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

YEP..........................I Nailed that ONE TOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!

This "IS" going to be a Epic 1st Hour of his Show Today!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
ROTFLMFAO in TEARS......................Damn Putin makes me LOOK Good!!!!!!!!!!!!!!!!!!!!!!!!!! 

I Know Folks, I make this SHIT Look Easy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

To YOU Readers from Europe I Strongly Suggest Buying VERY Warm Winter Clothing NOW because the NEXT Round of ""Sanction"" could be the Tipping Point for Putin to PLAY the ""Natural Gas"" Card!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Russia says 'high risk' to gas deliveries to Europe this winter

Russia's energy minister says Ukraine might siphon off supplies intended for the rest of Europe as tensions escalate
By Szu Ping Chan, and AFP

Russia has warned that there is "high risk" that deliveries of gas to Europe will be disrupted as international tensions over Ukraine mounted.

EUROPE.................................Totally FUCKED for the REST of this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 
Wall Street Admits That A Cyberattack Could Crash Our Banking System At Any Time
By Michael Snyder

Wall Street banks are getting hit by cyber attacks every single minute of every single day.  It is a massive onslaught that is not highly publicized because the bankers do not want to alarm the public.  But as you will see below, one big Wall Street bank is spending 250 million dollars a year just by themselves to combat this growing problem.  The truth is that our financial system is not nearly as stable as most Americans think that it is.  We have become more dependent on technology than ever before, and that comes with a potentially huge downside.  An electromagnetic pulse weapon or an incredibly massive cyberattack could conceivably take down part or all of our banking system at any time.

This week, the mainstream news is reporting on an attack on our major banks that was so massive that the FBI and the Secret Service have decided to get involved.  The following is how Forbes described what is going on...

Economic WARfare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Cyber Attack 

""GLOBAL WAR"" in this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Michael Snyder 
Yet Another ""Socialist"" ***BIG Government*** Type that has Totally FUCKED UP the Economy and the ""***POOR***"" She Claimed to be SOOOOOOOOOOOOOOOOOO Supportive Of!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

To You Folks in Brazil, If you THINK it's BAD Now, You ain't seen Nothing YET!!!!!!!!!!!!!!!!!!!!!!!!! Just Sit Back and watch what Happens when the Economies of Japan and China Collapse in 2015!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Brazil's economy falls into recession, latest figures show

Brazil has fallen into recession, just a month before the general election, latest figures show.

Economic output, GDP, fell by 0.6% in the three months to June, worse than analysts had predicted, and revised figures for the first quarter of the year also showed a fall of 0.2%.

A recession is usually defined as two consecutive quarters of contraction.

The news will be damaging for the government of President Dilma Rousseff.

According to the most recent poll, Ms Rousseff would lose to a rival candidate, environmentalist Marina Silva, if October's election went to a second round.

The World Cup, held in June and July, was not regarded as generally good for business, says the BBC's Wyre Davies in Rio de Janeiro.

"There were more days off for employees and many traditional tourists stayed away," he says. 

Brazil GDP Probably Shrank Most in 5 Years as Vote Nears
By Matthew Malinowski and Raymond Colitt

Brazil’s economy slipped into recession for the first time in more than five years as investments contracted on lower confidence before the October presidential election.

Gross domestic product shrank by 0.6 percent in the April-June period from the previous three months, after contracting a revised 0.2 percent in the first quarter, the national statistics agency said today in Rio de Janeiro. The contraction in the second quarter was bigger than the median estimate of 42 economists surveyed by Bloomberg, who expected a 0.4 percent drop.

President Dilma Rousseff has attempted to revive growth with tax cuts, billions of dollars in credit and higher social spending. With inflation hovering around the upper limit of the target range, consumer and business confidence eroded in the run-up to the first round vote on Oct. 5. It’s the first time the economy contracted for two consecutive quarters since the aftermath of the global financial crisis in 2008.


Emerging Markets

First Comes the ""GROWTH Recession"" THEN the MOTHER of ALL ""GLOBAL Recessions""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 
Alright Folks HERE "IS" a MUST Read Post of the DAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

EUROPE and RUSSIA are Both Heading for a ""HARD Landing"" and Another ""GREAT Recession"" in the 2H14. I have Warned the 2H was going to bring ALL Kinds of HELL that WILL Set the Stage for the ""GLOBAL Recession"" of 2015!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

This "IS" just a SMALL Sample of what I have Found this morning that PROVES ""BIG Government"" has totally SCREWED UP....................................Again in the WEST. The Economic Conditions of Europe and America are going to be Leveraged by the ASSHOLES of the World. Expect Ukraine to get MUCH Worse, The Middle East "IS" going to be Consumed by Civil WAR and China "IS" going to begin it Imitation of What RUSSIA IS doing in the South China SEA in 2015. WAR "IS" Coming ALL Thanks to the ""LIBERALS"" in America and the Socialists in Europe!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  

A Whole LOT of PEOPLE are going to DIE because Obama Doesn't have a FUCKING PLAN or CLUE on how to DEAL with ISIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Found: The Islamic State's Terror Laptop of Doom

Buried in a Dell computer captured in Syria are lessons for making bubonic plague bombs and missives on using weapons of mass destruction.
BY Harald Doornbos , Jenan Moussa

ANTAKYA, Turkey — Abu Ali, a commander of a moderate Syrian rebel group in northern Syria, proudly shows a black laptop partly covered in dust. "We took it this year from an ISIS hideout," he says.

Abu Ali says the fighters from the Islamic State of Iraq and al-Sham (ISIS), which have since rebranded themselves as the Islamic State, all fled before he and his men attacked the building. The attack occurred in January in a village in the Syrian province of Idlib, close to the border with Turkey, as part of a larger anti-ISIS offensive occurring at the time. "We found the laptop and the power cord in a room," he continued, "I took it with me. But I have no clue if it still works or if it contains anything interesting."

IS release video purporting to show beheading of Kurdish fighter

The Jihadist "Islamic State" (IS) group has released a video purporting to show its gunmen decapitating what they said was a Kurdish fighter captured in northern Iraq.

IS Kämpfer in Syrien 27.08.2014 Militärflughafen Tabka
The video, titled "A message in blood to the leaders of the American-Kurdish alliance," shows 15 masked gunmen standing around an "Islamic State" (IS) flag as well as alleged Kurdish captives wearing orange outfits.

Three of the men ask Kurdish regional president Massoud Barzani "and the Kurdish government to end their relationship with the US...," the SITE Intelligence Group monitoring service said on Friday.

The video then shows the captive being beheaded by the masked gunmen.

The video follows another released by IS showing the beheading of US journalist James Foley and threatening another kidnapped reporter, Steven Sotloff, with the same fate if US air strikes in Iraq are not halted.

UK Raises Terror Threat Level To Severe (From Substantial)


UK Home Secretary Theresa May has announced that a terrorist attack on the UK is :highly likely," although stressed that there is no information to suggest an attack is imminent:
Her decision is based on the latest intelligence from Syria and Iraq (and we suspect, as Brandon Smith notes, "the goal will be to terrify you and those around you into seeking out a more powerful, more centralized government authority to protect your security.") 

U.K. Terror Threat Raised to ‘Severe’ on New Intelligence From Syria and Iraq
By Robert Hutton 

U.K. Home Secretary Theresa May said the government was raising the terror threat level to “Severe,” the second-highest level, based on new intelligence from Syria and Iraq.

“The increase in the threat level is related to developments in Syria and Iraq where terrorist groups are planning attacks against the West,” May said in a statement in London. “Some of those plots are likely to involve foreign fighters who have traveled there from the U.K. and Europe to take part in those conflicts.”

The “Severe” rating means an attack is “highly likely”, but that there’s no intelligence about a specific plot. The highest level is “Imminent.” 

GAME Over Ukraine, Nothing "IS" going to STOP Putin from Annexing Eastern Ukraine!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NEXT Stop..............................""***The Port City of Odessa***""!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Why is Vladimir Putin Referring to Eastern Ukraine as 'New Russia'?
By Jack Moore

In a new statement, the Kremlin has detailed Russian President Vladimir Putin's address to pro-Russian separatists battling Kiev's force in eastern Ukraine, which referred to the rebels as "the militia of New Russia" or "Novorossiya".

This term is not a new addition to the Russian leader's personal lexicon. In a televised question and answer session in April in the midst of the Crimea crisis, Putin told the audience, in reference to the restive eastern regions of Ukraine: "It's new Russia."

This phrase has raised fears about Putin's territorial ambitions in the former Soviet Union but what does this term really mean?

"Novorossiya", which translates as New Russia, is a historical term for a region conquered by the Russian empire in the 18th century and controlled by Tsarist Russia in the 19th Century.

In the same Q&A, Putin uttered "God knows" why the "New Russian" regions became Ukrainian territory in the 1920s.

This area, shown below, today represents an area of southern Ukraine and borders the controversial Crimea region, which claimed independence earlier this year. 

Bloomberg's Peter Cook reports on President Obama threatens Vladimir Putin with new sanctions against Russia

JPMorgan Sees ‘Lehman Moment’ If Ukraine Deteriorates
By Jason Corcoran

Russia’s equity markets may face a “Lehman moment” if the Ukraine conflict deteriorates further, according to Alexander Kantarovich, head of research for JPMorgan Chase & Co. (JPM) in Moscow.

“With the significant deterioration in the Ukrainian situation, markets may treat this as a Lehman-style shock,” Kantarovich wrote in an e-mailed report today. “Revisiting the post-Lehman lows would imply downside of 50 percent from an index perspective.”

Russia’s ruble-denominated Micex Index (VTBMICX) has fallen 6.6 percent this year. The stock gauge posted the worst monthly drop in July since 2012 as the U.S. and the European Union escalated sanctions targeting Russia’s $2 trillion economy after the downing of a passenger jet on July 17 over Ukrainian territory controlled by pro-Russian insurgents.

The Micex lost 67 percent in 2008, the biggest decline among benchmarks in the 30 largest stock markets, as Lehman Brothers Holdings Inc.’s collapse triggered a global recession and foreign banks cut credit. It rebounded by 120 percent in 2009, data compiled by Bloomberg show.

Kantarovich sees significant differences between the situation now and the 2008-2009 crisis because oil prices, Russia’s chief export, are holding up and an economic contraction “may not be that deep.”

Putin Says Ukraine Must Be Forced Into Talks to Stem Crisis
By Ilya Arkhipov 

President Vladimir Putin said that Ukraine must be forced into negotiations to end five months of bloody battles between pro-Russian insurgents and the army, whose assaults on cities he compared to Nazi Germany’s tactics.

“The Ukrainian authorities must be forced to begin substantive talks,” Putin said today at Lake Seliger in Russia’s Tver region. “There has to be a substantive -- diplomats like using this word -- understanding of what rights the people of Donbas, Luhansk, the whole of the nation’s southeast will have.”

Putin said the Ukrainian military’s attempt to retake separatist-held areas of the country by force reminds him of World War II when Nazi troops besieged and bombed cities including his hometown of St. Petersburg.

The government in Kiev was joined yesterday by the U.S. and Europe in accusing Russia of escalating the five-month conflict in Ukraine by sending troops over the border to support a counter offensive by the separatists. The U.S. and the European Union threatened Putin with further sanctions. Ukrainian Prime Minister Arseniy Yatsenyuk said today that his nation may seek NATO membership as a result of the latest military deployments. 

Ukraine Fighting Surges as Russian-Backed Forces Gain
By Ilya Arkhipov, Volodymyr Verbyany and Angela Greiling Keane

Separatists in eastern Ukraine are battling government forces on two fronts near the Sea of Azov and south of Donetsk as NATO reports a surge of Russian troops and advanced equipment into the war-zone.

The U.S. and the European Union are threatening Russian President Vladimir Putin with further sanctions, even as the EU began talks in Moscow today aimed at a temporary deal with Ukraine to allow natural gas flows to resume. Russian Foreign Minister Sergei Lavrov dismissed satellite photos that NATO said show Russian troop movements as fakes.

“There was news that space imagery shows movements of Russian troops and the images turned out to be from computer games,” Lavrov told reporters today in Moscow. 

JPMorgan Hack Said to Span Months Via Multiple Flaws
By Jordan Robertson and Michael Riley 

Hackers burrowed into the databanks of JPMorgan Chase & Co. and deftly dodged one of the world’s largest arrays of sophisticated detection systems for months.

The attack, an outline of which was provided by two people familiar with the firm’s investigation, started in June at the digital equivalent of JPMorgan’s front door, an overlooked flaw in one of the bank’s websites. From there, it quickly developed into any security team’s worst nightmare.

The hackers unleashed malicious programs that had been designed specifically to penetrate JPMorgan’s corporate network. Using these sophisticated tools, the intruders reached deep into the bank’s infrastructure, silently siphoning off gigabytes of information, including customer-account data -- uninterrupted until mid-August.

Euro Set for Seventh Weekly Decline as Region’s Inflation Slows
By Rachel Evans and Eshe Nelson

The euro was set for a seven-week slide, the longest stretch in more than a decade, as a report showed gains in consumer prices in the region slowed this month.

The 18-nation currency headed for drops this month versus most of its 16 major counterparts as Goldman Sachs Group Inc. cut its outlook for the currency. European Central Bank officials meet Sept. 4 after ECB President Mario Draghi said Aug. 22 in Jackson Hole, Wyoming, that inflation expectations in the region have fallen, fueling bets officials will add to monetary stimulus. Canada’s dollar extended gains after a report show its economy expanded at the fastest pace in three years. Russia’s ruble weakened to a record.

“We’re still looking for a lower euro based on the policy divergence there, with the ECB continuing to be dovish,” Eric Viloria, a strategist at Wells Fargo & Co. in New York, said in a phone interview. “We had those dovish comments from Draghi at Jackson Hole, acknowledging the decline in inflation expectations. We’re going to be monitoring the European Central Bank meeting closely to see if there’s any signal of further measures.”

Danish GDP Shock Has Economists Querying Government Numbers
By Peter Levring

The chances of Denmark’s economic forecasts being supported by reality grew more remote this week after second-quarter data showed a surprise contraction that suggests the projected recovery has been derailed.

Gross domestic product shrank 0.3 percent last quarter, when economists surveyed by Bloomberg had foreseen a 0.3 percent expansion, according to figures published by the statistics office today. For the government to meet its 2014 target, annualized GDP growth will need be more than 5 percent in the final two quarters of the year, said Jes Asmussen, chief economist in Copenhagen at Svenska Handelsbanken AB.

“The chances of output meeting the government’s GDP target are so far out in the woods that I’m afraid there simply isn’t a wood that big,” Asmussen, who was the only economist of those surveyed by Bloomberg to predict a contraction last quarter, said by phone. The growth rate predicted by the government now “seems very unlikely as the current quarter is already looking very weak,” he said.

The Economy Ministry said this week it’s sticking to growth forecasts for 2014 and 2015, predicting an expansion of 1.4 percent this year and 2 percent next year. The government says it’s pushing spending to the limit of what’s allowed under budget rules to prop up Scandinavia’s weakest economy. Growth in the euro region has stalled as its three-largest economies weakened, led by a contraction in Germany. The development suggests Europe may still have far to go before recovering from its debt crisis.

Italy Back In Deflation With Lowest CPI Print In History; European Inflation Lowest Since 2009


Curious why European bond yields tumble to fresh new lows day after day (with the explicit backstop of the ECB of course, which makes fundamental analysis of sovereign solvency an irrelevant matter)? Then look no further than Italy, where as the chart below shows, not only has the economy "filled the gap" of its economy as tracked by its EU-Harmonized CPI, but at an August print of -0.2%, this is the lowest print in history, worse even than the brief -0.1%, flirt with deflation recorded just in the aftermath of the Lehman crash.

Italy Posts Biggest Consumer Price Decline on Record Amid Slump
By Alessandro Speciale and Lorenzo Totaro

Italy’s consumer prices this month dropped the most since records began after the euro-area’s third-largest economy slipped into recession, adding to concerns that the region might be headed toward deflation.

The inflation rate based on European Union measurements fell 0.2 percent in August from a year earlier, Rome-based national statistics office Istat said in a preliminary report today. That’s more than the median forecast of a 0.1 percent decline in a Bloomberg News survey of 12 economists. Prices also fell 0.2 percent from July.

Italy’s economy contracted for a second quarter in the three months through June sliding into its third recession since 2008, Istat said in a separate report today. Data also showed unemployment at a record high in the second quarter. The slump comes as Prime Minister Matteo Renzi is under pressure to deliver on his program of reforms and European Central Bank President Mario Draghi has hinted he could add more stimulus to foster economic growth and prevent deflation. 

Nowotny Hints at ECB Forecast Cut as Euro-Area Economy Lags
By Boris Groendahl and Alexander Weber

European Central Bank Governing Council member Ewald Nowotny suggested the institution may cut its economic forecast when it presents an updated estimate next week.

“It’s no secret that we are seeing somewhat of a downturn in the economy,” Nowotny told reporters in Alpbach, Austria, late yesterday. “Germany is no longer able to be a locomotive for growth.”

Recovery in the 18-nation euro area stalled in the second quarter after its three biggest economies failed to grow, with Germany contracting 0.2 percent. Inflation (ECCPEST) in the region slowed to 0.3 percent this month and the unemployment rate remained close to a record, the European Union’s statistics office in Luxembourg said today.

EUROPE..............................Totally FUCKED for the REST of this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Economic WARfare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NATO Ukraine 

PUTIN.................................He's OLD KGB!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

China Military 

I Make it SOOOOOOOOOOOOOOOO Fricking EASY to ""***Connect the Dots***"" Here so PLEASE Pass this WARNING along to a Friend!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Coming CORRECTION "IS" going to make 2008 Look like it was Nothing MORE Than a Fricking ""BAD Weekend in Vegas""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Folks the U.S. Economy "IS" Rolling OVER and there "IS" Nothing that B-1 Yellen can do to Stop IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Personal Spending Suffers First Drop Since January As Consumer Income, Outlays Miss


Judging by the just released personal income and spending data, consumers are already forecasting a long, harsh winter. With incomes and outlays expected to rise by 0.3% and 0.2% respectively, the July data was a big dud, missing on both expectations, and while income rose by a modest 0.2%, far below the 0.5% in June, it was personal spending which in fact declined by 0.1%, a major drop from the 0.4% increase in the prior month, and the first outright decline in spending since January. As CNBC's Steve Liesman explained the disappointing data: "weather." 

U.S. Consumer Spending Falls for First Time in Six Months
By Lorraine Woellert

Consumer spending in the U.S. unexpectedly dropped in July for the first time in six months, a sign households are lagging behind as wages fail to accelerate.

Household purchases decreased 0.1 percent after increasing 0.4 percent in June, Commerce Department figures showed today in Washington. None of the 79 economists in a Bloomberg survey projected a decrease. Incomes climbed 0.2 percent, the smallest monthly advance this year.

Consumer spending, which accounts for about 70 percent of the economy, has been held back by tight credit and meager wage growth that is barely able to keep up with inflation. A sustained labor market upswing is needed to lift earnings and help boost outlays at retailers such as Ross Stores Inc. (ROST)

“It’s a weak starting point for the third quarter,” said Jacob Oubina, senior U.S. economist at RBC Capital Markets LLC in New York. “It’s going to lead to a markdown in third-quarter forecasts.” RBC Capital Markets is the top forecaster of personal spending over the past two years, according to data collected by Bloomberg.

Stock-index futures trimmed earlier gains after the report. The contract on the Standard & Poor’s 500 Index expiring in September rose 0.1 percent to 1,999.3 at 8:44 a.m. in New York.

Housing Stumbling in Slowest Season for U.S.: Mortgages
By Prashant Gopal

Just when the stumbling U.S. housing market could use a boost, it’s entering the slowest period of the year.

Online home searches, an indicator of demand, peak from March through August, according to Trulia, a real estate information firm that studied three years of its search activity. By September, as summer ends and children start school, searches fall below the annual average and decline further until December.

The seasonal slowdown means a turnaround in the housing market is unlikely for the rest of this year. After a robust 2013, new and existing home sales are down from a year ago even with inventories up and mortgage rates holding close to record lows. The pace of new-home purchases fell to the slowest in four months in July as rising prices and tight credit kept buyers at bay and forced economists to lower forecasts.

“The first half of the year has definitely been disappointing,” said Joel Kan, director of economic forecasting at the Mortgage Bankers Association. “There is upside potential but we don’t expect a sudden or sharp increase in home sales or originations in coming quarters.”

The MBA last month lowered its forecasts for purchase originations in the third quarter to $159 billion compared with $195 billion in the same period a year earlier. In January, the trade group had predicted the quarterly figure would reach $202 billion.

Retail Sales 

U.S. Housing................................Now Comes the CORRECTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

First COMES the ""GROWTH Recession"" THEN the MOTHER of ALL ""GLOBAL Recessions""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Coming CORRECTION "IS" going to be FRICKING BRUTAL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Thursday, August 28, 2014

To YOU Readers from Europe I Strongly Suggest Buying VERY Warm Winter Clothing NOW because the NEXT Round of ""Sanction"" could be the Tipping Point for Putin to PLAY the ""Natural Gas"" Card!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Is It War? Ukraine Conflict Definition Softens in West
By Gregory Viscusi

For governments in the Baltic states of Latvia and Lithuania, Russia has invaded Ukraine and the two countries are now at war. Head further west, and they’re less sure what to call it.

While all agree that a line has been crossed, U.S and NATO officials prefer to speak of an “incursion,” the word used by President Barack Obama at a White House press conference yesterday. French and German leaders have warned President Vladimir Putin of further sanctions without defining what Russian forces have done.

“In the past 48 hours, we have tipped into a formal invasion,” Ian Bremmer, president of the Eurasia Group, said in a Bloomberg television interview. “Russia and Ukraine as sovereign countries are now at war and it’s going to be very difficult for the United States and Europe to deny that reality.”

Russian Recession Risk Seen at Record High Amid Sanctions
By Andre Tartar and Anna Andrianova

The chance of Russia’s economy tipping into a recession is rising as the escalating crisis in Ukraine raises the risk of the government in Moscow retaliating with further import bans, according to a survey of analysts.

The probability of a recession in the next 12 months rose to 65 percent from 50 percent, the highest since the first such Bloomberg survey in June 2012, according to the median estimate of 26 economists in the poll. Russia will enact additional restrictions in retribution for sanctions imposed by the U.S. and the European Union, according to 15 of 25 economists. Of those, 12 expect Russia to target cars and consumer goods.

The standoff with the U.S. and its allies over Ukraine is capsizing Russia’s $2 trillion economy. The ruble weakened, inflation accelerated and capital flight quickened as the two sides exchanged salvos of sanctions. After the U.S. and the EU blacklisted some Russian individuals and businesses, President Vladimir Putin this month banned imports of some food products.

“After the last round of sanctions and somewhat unexpectedly harsh Russian retaliation, which is going to hurt it more than the Western countries, it is becoming obvious that economic reasoning was not found in Russian policy makers’ toolkit,” Nerijus Maciulis, chief economist at Swedbank Lithuania in Vilnius, said by e-mail.

Russian sovereign ruble bonds have declined 11.23 percent since the beginning of the year, compared with a 6.23 percent advance for the Bloomberg Emerging Market Local Sovereign Index. The ruble has lost more than 10 percent against the dollar this year. 

Economic WARfare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Finland Puts Fighter Planes on Alert as Russia Violates Airspace
By Kati Pohjanpalo and Kasper Viita

Finland’s government said its fighter jets were ready to intercept foreign aircraft after Russian planes repeatedly violated the northernmost euro member’s airspace.

A Russian Antonov AN 72 transport plane crossed the Finnish border yesterday at about 12:08 p.m. local time near Porvoo on the Gulf of Finland, the government in Helsinki said. Russian state aircraft are also suspected of two other airspace violations on Finland’s south coast since Aug. 23.

“It shouldn’t be a surprise to anyone that they don’t respect borders,” Charly Salonius-Pasternak, senior researcher at the Finnish Institute of International Affairs, said by phone. “At a minimum, the Russian air force is acting carelessly and that they do so is more and more serious, taking into account the general international and European security situation.”

The Finnish government views the incursions as “extremely unfortunate incidents” that must be “taken very seriously,” Defense Minister Carl Haglund told reporters in Helsinki yesterday. “Three airspace violations within a week is a lot and unfortunately they don’t really have a good explanation. What we know is they are done somewhat on purpose. We don’t know what that purpose is.”

Finland NATO 

Nigel Farage "IS" Doing the HAPPY Dance TONIGHT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 


The Coming Collapse of the EURO WILL Bring an END to the EU Socialist Lab Experiment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 


""BIG Government"" All Around the WORLD are going to begin to FAIL in 2015. Argentina "IS" just a WARM UP of the HELL that's Coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 


German Finance Minister Tells EU Leaders: Free Money Party's Over


Has Germany had enough? Hot on the heels of Mario Draghi's 'demands' that EU leaders undertake "structural reforms" to boost competitiveness and overcome the legacy of Europe's debt crisis, German Finance Minister Wolfgang Schaeuble unleashed perhaps the most worrisome statement tonight for all the free-money-party-goers - the music is about to stop. In an interview with Bloomberg TV, Schaeuble blasted "Europe needs to find ways to foster growth," adding that "the ECB has reached the limit in helping the Euro Area." In a clear shot across the bow of his 'core' cohort, Schaeuble said he "understood" Hollande's demands but shot back that "monetary policy can only buy time."

EUROPE...............................Totally FUCKED for the REST of this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

FRANCE.............................EMU's NEXT ""PIIGS""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Coming CORRECTION "IS" going to be FRICKING BRUTAL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


And Planet EARTH Never Forget, YOU have ONLY American ""LIBERALS"" and European ""Socialists"" TO Blame for the HELL that's Coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Abenomics "IS" SOOOOOOOOOOOOOOO Totally SCREWED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Japan’s July Output Misses Estimates as Spending Slumps
By Toru Fujioka and Masaaki Iwamoto

Industrial production in Japan rose less than expected in July while household spending slumped and the inflation rate remained unchanged, highlighting the challenge of reflating the world’s third-largest economy.

Output expanded by 0.2 percent from June, according to the trade ministry, less than the forecast for a 1.0 percent gain in a Bloomberg News survey of 31 economists. Consumer prices excluding fresh food rose 3.3 percent from a year earlier, the same pace as June, the statistics bureau said.

Today’s data underscores weakness in the economy following a sales-tax hike in April that’s hurting consumption. It also puts pressure on the government and Bank of Japan Governor Haruhiko Kuroda to consider adding stimulus to support the economy before another planned increase in the levy.

“We are still at the bottom without a rebound,” said Junichi Makino, chief economist at SMBC Nikko Securities Inc. in Tokyo. “The situation is fueling concern that the government might not raise the sales tax as planned. The likelihood of a supplementary budget is rising.”

The yen was little changed at 103.72 per the dollar at 10:50 a.m. in Tokyo while the Topix index of shares fell 0.3 percent, declining for a second day.

Output will expand 1.3 percent in August from July, and grow 3.5 percent in September, according to the results of a trade ministry survey. The ministry’s assessment that production has weakened was unchanged.

Abegeddon: Household Spending Re-Collapses As Japanese Unemployment Jumps To 9-Month High


Just when you thought it couldn't get any worse... In a veritable deluge of data from Japan tonight, there is - simply put - no silver lining. First, Japan's jobless rate unexpectedly jumped to 3.8% - its highest since Nov 2013 (despite the highest job-to-applicant ratio in 22 years). Then, household spending re-collapsed 5.9% for the 4th month in a row (showingh no sign of post-tax-hike-recovery). Industrial Production was up next and dramatically missed expectations with a mere 0.2% rebound after last month's plunge (-0.9% YoY - worst in 13 months), quickly followed by a 0.5% drop in Japanes retail trade MoM (missing hope for a 0.3% gain). That's good news, right? Means moar QQE, right? Wrong! Japanese CPI came hot at 3.4% YoY with energy costs and electronic goods 'hyperinflating' at 8.8% and 9.1% respectively. As Goldman's chief Japan economist warns, "the BOJ doesn’t have another bazooka," adding that "The window for reform may already have been half closed." We're gonna need another arrow, Abe! 

Japan’s consumption tax increase was a mistake

From Prof Masazumi Wakatabe.

Sir, Jonathan Soble’s article on Abenomics (“Off target”, Analysis, August 26) is valuable, but problematic.

First, what Japan is facing is not a stagflation. Stagflation is usually caused by supply side shock such as the oil shock, but this is not what Japan is having right now. The government has raised the consumption tax in April, which reduces real income of the people, and the economy is shrinking. This is a downward shift in aggregate demand. Seemingly the price level has increased, but this may have been caused by the consumption tax increase as it happened in 1997: the actual inflation may be decreasing. One piece of evidence for this is the University of Tokyo’s daily price index. The coverage is not as wide as the official index, but it shows a disturbing downward trend since this April.

Second, Mr Soble assumes that Japan is now at full employment. This is very difficult to believe. Some parts of the economy such as construction and the retail sector have more openings for job seekers, but this cannot be generalised to the overall economy. Actually, he refers to stagnating nominal and real wages. This is more consistent with Japan being not fully employed.

Third, citing demographics as a part of demand problem is a common but not well-grounded claim. Mr Soble does not give us the evidence for his main claim, namely that “average incomes are stagnant because the highest-paid jobs are disappearing” with baby boomers’ departure from the labour market.

Having said that, I agree with Robert Feldman, quoted in the article, that “Abenomics is in trouble”, but for reasons other than those Mr Soble gives. The government should admit that the consumption tax increase was a mistake, and the Bank of Japan should be more vigilant about the economic downturn and further monetary expansion than it seems to be now. 

Is Abenomics still working?

Questions about Prime Minister Shinzo Abe’s reforms have gathered pace in recent weeks, following Japan’s worst GDP slump since the 2011 earthquake and tsunami.

Japan’s second-quarter GDP fell 6.8% relative to the previous three months, largely due to the effect of the recently introduced sales tax on consumer spending. This is in contrast to the 6.1% GDP rise in the first quarter of 2014, attributed to a sales rush before the consumption tax came in. Overall, Japan’s GDP is estimated to have fallen by 1.7% quarter-on-quarter.

Capital Economics expected a narrower 1.3% quarter-on-quarter decline and, following the weak GDP data, has adjusted its growth forecast for Japan for 2014 from 1.5% to 0.9%.

The Coming RECESSION in Japan "IS" going Spread ALL Through ASIA and CRUSH the Dollar Carry Trade that WILL WIPE Out Equity Markets ALL Around the WORLD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

The ***BUBBLE*** that Uncle Ben's ""QE"" VooDoo Created IS going to make 2008 look like it was Nothing MORE than a ""BAD Weekend in Vegas""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Japan jobless rate edges up to 3.8 percent in July

(Reuters) - Japan's jobless rate rose slightly in July and the availability of jobs held steady at the highest in 22 years, giving evidence of a pause in improvement in the labour market.

The seasonally adjusted unemployment rate, released by the Ministry of Internal Affairs and Communications, rose to 3.8 percent in July from 3.7 percent the month before. The median estimate was for the jobless rate to remain unchanged.

The jobs-to-applicants ratio was 1.10 in July. That was unchanged from the previous month, which marked the highest since June 1992, data from the labour ministry showed on Friday.

The median estimate from economists was that the ratio measuring labour demand would remain unchanged. 

Japan July household spending falls 5.9 percent versus year ago

(Reuters) - Japanese household spending fell in July from a year ago, government data showed on Friday, in a sign that consumer spending is struggling to recover after an increase in the national sales tax.

The 5.9 percent year-on-year decrease exceeded the median market forecast for a 3.0 percent annual decline.

Spending fell 0.2 percent in July from the previous month in seasonally adjusted terms as households spent an average 280,293 yen (1,629.23 pounds), the Ministry of Internal Affairs and Communications said. The median estimate was for a 1.6 percent month-on-month increase. 

Japan household spending slumps, output flat as tax pain persists
By By Leika Kihara and Stanley White

TOKYO (Reuters) - Japanese household spending fell more than expected and factory output remained anemic in July after plunging last month, government data showed on Friday, suggesting that soft exports and a sales tax hike in April may drag on the economy longer than expected.

While the Bank of Japan is in no mood to expand monetary stimulus any time soon, the data will keep it under pressure to act if the economy fails to gather momentum after contracting in the April-June quarter, analysts say.

Separate data showed core consumer inflation, which excludes volatile prices of fresh foods but includes oil products, hit 3.3 percent in the year to July, matching a median market forecast.

When excluding the effect of the April tax hike, it stood at 1.3 percent, still distant from the 2 percent inflation target the Bank of Japan pledged to meet sometime next year.

Industrial output rose 0.2 percent in July, much less than a 1.0 percent increase projected in a Reuters poll, data by the Ministry of Economy, Industry and Trade showed.

That was a tepid rebound from a 3.4 percent fall in June, the fastest drop since the March 2011 earthquake, as companies slowed production in response to weak exports and post-tax domestic demand.

Japan’s Inflation Unchanged, Highlighting Central Bank's Challenge
By Toru Fujioka

Japan’s inflation rate was unchanged in July after slowing the previous month, highlighting the challenge Governor Haruhiko Kuroda faces in achieving the central bank’s price-growth target.

Consumer prices excluding fresh food rose 3.3 percent from a year earlier, the same pace as June, the statistics bureau said today in Tokyo. This matched the median projection from a Bloomberg News survey of 31 economists. Stripped of the effect of April’s sales tax increase, inflation was 1.3 percent.

The Bank of Japan has said that consumer prices will increase about 1.25 percent for some time before accelerating to reach its 2 percent inflation goal. Any weakness in inflation following the contraction in the economy last quarter may increase pressure on Kuroda to add to stimulus. 

Kyle Bass Japan................................Abenomics "IS" going to FAIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

The Central Banksters have created a Global Bubble that Makes what they Created last Decade look like it WAS Sound Monetary Policy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 


Central Banks at the Root of Evil

By: Dr Martenson

The current bubbles in financial assets -- in equities and bonds of all grades and quality -- raging in every major market across the globe are no accident.

They are a deliberate creation. The intentional results of policy.

Therefore, when they burst, we shouldn't regard the resulting damage as some freak act of nature or other such outcome outside of our control. To reiterate, the carnage will be the very predictable result of some terribly shortsighted decision-making and defective logic.

The Root of Evil

Blame can and should be laid where it belongs: with the central banks.

They were the "experts" who decided to confront the excesses of decades past (which saw borrowing running at roughly 2x the rate of real economic growth) with even easier monetary policies designed to spur even more borrowing.

Rather than take stock of the simple fact that nobody can forever borrow at a faster rate than their income is growing (no matter how large that entity may be), the Fed, the ECB, the BoJ and the BoE have conveniently overlooked that simple fact and then boldly claimed that the cure is identical to the disease.  If the problem is debt then the solution is even more debt.

If the Fed, et al. were doctors, they would prescribe alcohol to the alcoholic. They would administer more lead to the lead-poisoned patient. They would call for more water to put in the pool where a drowning individual is floundering.

The bottom line is that the Fed and its ilk made the disastrous decisions that gave us the first two burst bubbles of the new millennium. And the wonder of it all is that, instead of being met at the gates with torches and pitchforks and held to account for their errors, they have instead been granted even greater powers, less oversight, and practically zero blame.

And now they’ve given us a third and, I suspect, final bubble. By which I mean I think the effects of this bursting bubble will be so horrendous that a hundred years might pass before people will again be in the mood to speculate on fantasy wealth.

My hope is that, when this third bubble pops, the figurative (and, perhaps, literal?) torches and pitchforks come out. Finally forcing the central banks to answer to the public for their grievously poor decisions.

And yes, the investing public also bears a portion of the responsibility for playing along with the central banks. For years, some have consoled themselves with stories about how This Time Is Different, and many have ignored many obvious warning signs as they've enjoyed stock market and bond gains fueled by seemingly limitless liquidity. 

But in the end, it's the central banks that  set the tempo and the melody at the dance hall.  When they flood the world with liquidity and set interest rates to 0%, they enforce a Hobbesian choice: either play along in the risk markets, or sit in cash earning less than nothing as inflation eats away at your purchasing power.

The central banks are entirely to blame for mis-pricing money and that is the fundamental error that drives every bubble and betrays capital into hopeless investments.

Central Banks Balance Sheet Risk!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Forgetting the Lessons of the Asian Financial Crisis

The disgraced former head of Daewoo Group is trying to rewrite the history of the Asian Financial Crisis.
By Yong Kwon

“Chairman Kim pursued the growth of his company while always keeping in mind the country’s development… He is a nationalist who managed the world… [Western management style] is inhumane, corporations must examine ways to overcome crises without reducing employment.” These are lines found in reviews of the recently published book titled “Conversations with Kim Woo-jung,” a collection of interviews with the founder of the now defunct conglomerate, Daewoo Group.

With a dash of nationalism and populist rhetoric, the book revisits South Korea’s handling of the 1997 Asian Financial Crisis and advances Kim’s opinion that Seoul’s decision in 1999 to dismantle Daewoo because of its high debt-to-equity ratio was a mistake. Estimating the losses from his conglomerate’s breakup at $21 billion, the former mogul lays out the case for how the South Korean people ultimately bore the cost of the government’s error. When asked why he decided to publicize his opinions at this time, Kim answered that he felt 15 years was enough time to prove that the International Monetary Fund and the South Korean government had been wrong. Of course there are more strategic reasons behind this measured response. At a time of economic uncertainty, blaming others while providing populist rhetoric is bound to attract attention.

There is precedence for caution and skepticism when approaching works justifying the behavior of pre-crisis business elites. Throughout post-crisis economies, former elites frequently resist reforms and exploit nationalist sentiments to criticize outside influences like the IMF. They often employ slippery slope arguments for how “Asian values” are different from those in the West, bolstering the dangerous notion that prudent macroeconomic practices and political freedoms are incompatible with the respective national cultures of the region.

Not to Worry about Revisionist History, CHINA and Japan "IS" going to make 1997 look like it was nothing more than a Minor Accounting ERROR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Kyle Bass Japan...................................Abenomics "IS" going to FAIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

China SHADOW Banking............................BANKING Crisis II Coming at YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

To the Readers from Japan, Taiwan, South Korea, Vietnam and the Philippines...................YOU  ALL better believe ME on this THIS ONE, China "IS" Watching what Obama IS Allowing PUTIN to get away with in UKRAINE VERY Closely!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Come 2015, I'm think CHINA "IS" going to TAKE what they Want in Asia because They believe Obama WILL Fail to Honor Treaty Commitments!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Obama Reveals The Grand ISIS Plan: "We Don't Have A Strategy Yet"


President Obama 'knows' how to handle Putin's 'continuation' (not 'invasion') - more sanctions (and costs for Europe) - but when it comes to beating the most "barbaric" terrorists known as ISIS, ISIL, or The Islamic State; he had this to offer... "I don't want to put the cart before the horse. We don't have a strategy yet." Rest assured Americans - who have been told that ISIS could be crossing the borders every day and a constant threat, President Obama is 'working on it'. Perhaps most crucially, while we 'joke' that the administration has no strategy, it is noteworthy that Obama stated it was "not US policy to defeat ISIS, only reverse gains." 


Exposing China’s Provocations

U.S. and allied forces should film Chinese assertiveness and let the whole world see it firsthand.
By James R. Holmes

Exposing China’s Provocations

Sunlight is the best disinfectant when dealing with people who take certain, er, liberties with the truth. If a picture is worth a thousand words; a video clip speaks volumes. Pick your favorite expression for deploying factual evidence to debunk mythmaking. In a war of conflicting narratives such as the one raging across the China seas, the spokesman who produces hard evidence commands an edge over one who can only resort to bluster. Video placed in context beats a shouting match any day.

Which is why the Naval Diplomat advises any sea or air force that operates at close quarters with Chinese ships, aircraft, or personnel to take video — and display it when need be. Record all encounters with People’s Liberation Army units, sure. But also record run-ins with the China Coast Guard, Chinese shipping or energy firms, even the fishing fleet. Together these military and non-military, official and unofficial organizations constitute the long arm of Chinese sea power.

They’re also political implements whereby Beijing prosecutes “three warfares“ — legal, media, psychological — against its Asian rivals and extraregional powers such as the United States. For example, Beijing stakes its claim to “indisputable sovereignty” in the South China Sea, deploys non-military (and sometimes military) assets to police sea areas it claims, and acts put-upon if, say, Manila has the temerity to dispatch coast-guard assets of its own or file a case with the Law of the Sea Tribunal. If successful, three-warfares tactics dishearten or overawe opponents into submission.

China Might Just Be an Assertive Status Quo Power

On balance, Beijing’s policies suggest it is looking to carve out a special role for itself within the current order.
By Robert Farley

Is China a status quo or a revisionist power?

This question dominated 20th century geopolitics. Attempts to discern whether competitors intended to adjust the existing international order in their favor, or to overthrow that order and install something new, sat at the heart of statecraft and diplomacy at the openings of World War I, World War II, and the Cold War.  The question goes to the heart of the willingness of people and statesmen to make the sacrifices necessary to defend national interests. World War I might have been worth fighting against a revolutionary power, rather less so against states that merely desired a reshuffling of the deck.

Unsurprisingly, this question has animated (if often implicitly), U.S. discussion of the problems created by the rise of China.  We can agree on certain things. Chinese pilots are not going rogue; there is a logic behind these intercepts, and it’s worthwhile to expose Chinese provocations. All of this tells us less about China’s long-range aims than we might think, however.

Sometimes it’s hard to see whether a state is pro-status quo or revisionist.  Russia appears only recently to have determined, after 15 years of struggle, that it simply cannot live within the international order created and maintained by the United States. For a very long time Imperial Japan sought to understand its own foreign policy as part of the broader colonial project that the European powers had created, before rejecting even that as insufficient. On the converse, in the Cold War the United States determined, eventually, that Soviet Russia was basically an ornery status quo power, different in character from either Imperial Japan or Nazi Germany.

Thus far, there is precious little to indicate that China genuinely seeks to overturn the existing international order of East Asia, rather than carve out a larger (and more unique) place within that order. Competitive status quo powers do things like creating ADIZs, throwing their weight behind squabble over islands, and playing hardball with respect to contested offshore resources. Similarly, launching increasingly aggressive interceptions of recon aircraft in the vicinity of China is something that we could expect of a mildly competitive status quo power, especially one enjoying growth in economic and military power.

China Military

""GLOBAL WAR"" in this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!