Asshole statement of the day: Yellen: Banks ‘very much stronger’; another financial crisis not likely ‘in our lifetime’

Fed Chair Janet Yellen said Tuesday that banks are “very much stronger” and another financial crisis is unlikely anytime soon. Speaking during an exchange in London with British Academy President Lord Nicholas Stern, the central bank chief said the Fed has learned lessons from the financial crisis and has brought stability to the banking system. Banks last week passed the first round of the Fed’s stress tests to see how they would perform under adverse conditions like a 10 percent unemployment rate and turbulence in commercial real estate and corporate debt. “I think the public can see the capital positions of the major banks are very much stronger this year,” Yellen said. “All of the firms passed the quantitative parts of the stress tests.” She also made a bold prediction: that ” another financial crisis the likes of the one that exploded in 2008 was not likely “in our lifetime.” The crisis, which erupted in September 2008 with the implosion of Lehman Brothers but had been stewing for years, would have been “worse than the Great Depression” without the Fed’s intervention, Yellen said. Nick Note: Remember this day and this quote. From Janet Yellen:

another financial crisis the likes of the one that exploded in 2008 was not likely “in our lifetime.”

This will go down in history as the dumbest thing ever said by the Federal Reserve ever. We are headed for the greatest Financial Crises in world history.

Something for you to think about. Why did she all of a sudden feel compelled to make this statement?  What does she know she does not want you to know?

Harker stands by Fed rate hikes but nods to weak inflation

The Federal Reserve rightly plans to raise U.S. interest rates once more this year given recent inflation weakness is likely temporary, a Fed policymaker said on Tuesday even as he predicted it would take a bit longer for prices to rebound to the U.S. central bank’s goal. The comments from Philadelphia Fed President Patrick Harker, a centrist U.S. rate-setter, reinforce the central bank’s wait-and-see approach to two months of surprisingly soft price readings which have brought its preferred inflation measure down to 1.5 percent. “I’m sticking to my outlook that we’re on the right path,” Harker told the European Economics and Financial Center in London, according to prepared remarks. “In the case of inflation, I’ve seen the factors exerting downward pressure as temporary.” Nick Note: The Fed is starting to feel the heat. their bullshit mathematical Doctoral University models tells them everything is fine. The problem is more and more REAL data is showing deflation and warning about another recession. Real world data is not part of what they do. That is why they ALWAYS get it wrong. They are missing the storm clouds on the horizon….. Nothing new. The economy is already entering a recession in may sectors. And the FED with their heads up their asses are missing it.

 

UPS to freeze nonunion workers’ pension plans

United Parcel Service Inc. is planning to freeze pension plans for about 70,000 nonunion employees, seeking to contain the burden of a retirement fund with a nearly $10 billion deficit. The package carrier would be the latest major U.S. corporation taking steps to corral rising pension obligations. The collective deficit in the S&P 1500 pension plans totaled $408 billion at the end of last year, according to consulting firm Mercer. UPS UPS  has more than 434,000 workers world-wide, with more than 80% in the U.S. Most of them are unionized. The company is expected to outline changes to nonunion staff as soon as Tuesday, people familiar with the matter said. Nick Note: if UPS one of the biggest most profitable companies in the world has a underfunded pension problem you can get a feel for the rest. This is the monster that will come in the night

Fed’s Williams sees advanced economies stuck in low growth mode

Central banks in the United States and other advanced economies will find themselves stuck with slow growth over the long-term unless fiscal authorities do something decisive to turn things around, a U.S. central banker warned Tuesday. That dour view may come as a surprise given that the Federal Reserve raised interest rates earlier this month and plans to continue to do so gradually to keep the U.S. economy from overheating. Rising interest rates often signal optimism about economic prospects. But, San Francisco Federal Reserve President John Williams said Tuesday, while the economic news is encouraging in the short-term, over the longer run it is bound to disappoint. Aging demographics and a productivity slowdown are putting the brakes on global growth, he said.  Growth in the U.S., the euro area, the U.K. and Canada now estimated at just 1.5 percent. That is about half the normal pace before the financial crisis. Lower growth reduces the demand for investment and pushes down on interest rates, leaving central banks less room to cut rates to offset an economic shock. Nick Note: Slowly the Fed admits the truth. Trump needs 3.5% growth for his economic “miracle”. its not going to happen. And push down on interest rates is the order of the day.

 

 

Draghi: ECB will be cautious in adjusting stimulus effort

European Central Bank head Mario Draghi says the bank’s stimulus efforts need to be “persistent” even as the economy recovers and that any scaling back of support has to come gradually. Draghi’s said in a speech Tuesday at a conference in Sintra, Portugal, that “there are strong grounds for prudence” in adjusting the level of stimulus and that any withdrawal of stimulus “will have to be made gradually.” Draghi said  that stimulus “is still needed” and that bank policy “needs to be persistent and we need to be prudent” about adjusting it. “Raising rates at the wrong time will cause a recession.” Nick Note: See that part about raising rates causing a recession that Draghi just warned about. That is exactly what Yellon Federal Reserve chair PERSON just did. Look out below!

 

Bernanke: Economists totally missed Trump’s populist uprising, but now we need to help

Former chairman of the Federal Reserve Ben Bernanke said Monday that economists have a “responsibility” to help address populist frustrations. “The credibility of economists has been damaged by our insufficient attention, over the years, to the problems of economic adjustment and by our proclivity toward top-down, rather than bottom-up, policies,” Bernanke, now distinguished fellow in residence, Brookings Institution, said in prepared remarks for a dinner speech called “When growth is not enough.” Nick Note: Hear me well. Economists got their heads up their collective asses. They look at the world through their mathematical models. Historic models. And that is now how economies work. They are fast moving dynamic events that defy mathematics. Want proof? Since its inspection the Federal Reserve has been on the wrong side of every single move of significance. And worse yet it has made every down turn far far worse then it would have been if they had simply left things alone. We are headed for the biggest stock market crash and economic downturn since the great depression. And yes their economic models will pick it up… unfortunately after the fact.

 

Chicago Fed national economic index matches multimonth low as factories, hiring a drag

Another sign of the springtime pause for the U.S. economy emerged Monday in the Chicago Federal Reserve’s snapshot of the national economy. The Chicago Fed’s National Activity index retreated to a negative 0.26 in May from an upwardly revised 0.57 in April, pulled down by manufacturing in particular, but also dragged lower by the employment and consumption/housing components. May’s reading is the lowest since January, when a negative 0.26 was also reported; the index was last lower than that result in August 2016. April’s was the highest reading since March 2014, according to historical data tracked in the St. Louis Fed FRED database. Nick Note: And another one! That shows that we are very close to the last hurrah. i think they have a quick fast short clearing rally before the death plunge. i would hate to be a FED governor at one of their closed door meetings right now. They have screwed up royally. Yield curve gets flatter by the day.

US durable goods orders fell in May by the most in 18 months

Demand for long-lasting U.S. factory goods fell by the most in 18 months, and a key category that tracks business investment also slipped, evidence that manufacturing output is barely growing. The Commerce Department says orders for durable goods — items meant to last at least three years — slid 1.1 percent in May. It was the second straight decline. U.S. manufacturing has struggled to gain its footing this year. A plunge in demand for civilian and military aircraft drove the decline in May. Excluding transportation goods, orders actually ticked up 0.1 percent, after dropping the previous month. Nick Note: Further proof the US economy is headed off the proverbial cliff. And the stupid ass FED raised rates. Yield cure flatting. The smart money knows what is coming and getting ready

Slowdown in US inflation due to one-off factors: Fed’s Williams

A recent slowdown in U.S. inflation was mainly due to one-off factors and should not prevent further increases in interest rates, a top U.S. central banker said on Monday. Speaking to reporters before a speech in Sydney, San Francisco Federal Reserve Bank President John Williams said three rate rises this year and three to four next year would be fine as long as the economy progressed as hoped, though much would depend on how the data unfolded. Williams said his own estimate of neutral policy — a rate that was neither a stimulus nor a drag on growth — was a little below 3 percent. Nick Note: this is a example of the idiots that are part of the Fed.  We have reported to you the concern abut deflation, bad debt and poor worker productivity and the lack of wages increases. And this wooden head calls these dangerous trends “one off factors” Stupid is GODS favorite color. He painted the world with buckets of it.

Italy holds emergency cabinet meeting over Veneto banks

The Italian cabinet convened on Sunday afternoon to approve an emergency decree that will start liquidation proceedings for two ailing Veneto-based lenders, Banca Popolare di Vicenza and Veneto Banca, the prime minister’s office said. The decree must be approved by midnight on Sunday, in time for the reopening of bank branches and markets on Monday. The European Commission on Friday gave preliminary approval for the Italian plan to wind down the two banks with state money in a move that may allow Rome to solve its latest banking crisis on its own terms. The decree is expected to split the two lenders’ assets into “good” and “bad” banks. The country’s top retail bank Intesa Sanpaolo ) is set to buy the good assets for one euro, leaving the state to foot the bulk of the bill for losses stemming from the banks’ bad loans, legal risks and restructuring costs. Nick Note: The European banks are broke especially in southern Europe. Their are trillions in bad debt. They are barely managing the crises. As the global economy continues to weaken these toxic banks will bow up in central bankers faces. You will see a lot more weekend and middle of the night bailouts…. Which in truth are only sweeping the loses under a very lumpy carpet.

 

Australia to seek greater powers on encrypted messaging at ‘Five eyes’ meeting

Australia said on Sunday it will push for greater powers to tackle the use of encrypted messaging services used by terrorists and criminals at an upcoming meeting of ministers from the “Five Eyes” intelligence network. The United States, United Kingdom, Canada, Australia, and New Zealand, will meet in the Canadian city of Ottawa next week, where they will discuss tactics to combat terrorism and border protection, two senior Australian ministers said. Australia has made it clear it wants tech companies to do much more to give intelligence and law enforcement agencies access to encrypted communications. “I will raise the need to address ongoing challenges posed by terrorists and criminals using encryption,” Australian Attorney General Senator Brandis said in a joint statement. Nick Note: If they make encryption illegal we will all lose a very important part of our right to privacy. I urge you to get your privacy tools. if you have not ordered from us your Privacy internet security disk please call customer service. it is free upgrade to your subscription.

 

It’s going to end ‘extremely badly,’ with stocks set to plummet 40% or more, warns Marc ‘Dr. Doom’ Faber

If the man often hailed as the original “Dr. Doom” is right, the stock market could see another “lurch” higher — at which point investors may want to cash out quickly and run for cover. Marc Faber, the editor of “The Gloom, Boom & Doom Report’ and a perennial bear, isn’t backing down from his latest dire prediction that would send stocks plummeting by 40 percent or more. A drop of that size could take the S&P 500 Index down from Friday’s closing price of 2,438 to 1,463. He used the meteoric rise of FANG stocks, which reflects Facebook, Apple, Netflix and Google (Alphabet), as a glaring bearish signal. “We’ve had more than eight years of a bull market. The Nasdaq is being driven by very few stocks,” said Faber on Friday’s “Trading Nation.” That rally “is not a particularly healthy sign from a technical point of view, and valuations are very high,” the investor added. Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it. “Either people with money will be taxed heavily … or we’ll have a massive deflation in asset prices — I repeat: massive,” he warned. “Eventually the system will break.” Nick Note: Yes we are headed for what will eventually be a 90% stock market crash… which we know how to trade. and we will enter a massive deflation and a mindless rush into US government Treasuries. We will end up with negative interest rates of minus 25% or more. You have been warned and thank GOD we are some of the only fortunate people on the planet who know exactly what to do. Be patient a huge pay day is on the way.

Illinois could be 1st state with ‘junk’ credit due to budget

(AP) — Illinois is on track to become the first U.S. state to have its credit rating downgraded to “junk” status, which would deepen its multibillion-dollar deficit and cost taxpayers more for years to come. S&P Global Ratings has warned the agency will likely lower Illinois’ creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year, increasing the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt. The agencies are concerned about Illinois’ massive pension debt, as well as a $15 billion backlog of unpaid bills and the drop in revenue that occurred when lawmakers in 2015 allowed a temporary income tax increase to expire. Nick Note: This is just the start of the  pension led shortfall wipe-out. The untold truth is most states and major corporations have huge unfunded pension liabilities they have been hiding for years. What has changed is the facts the baby boomers are retiring and as you are seeing its starting to push the entities that owe all that money over the cliff.

Fed’s Bullard says time for Fed to pause on interest-rate hikes

The Federal Reserve can afford to stop raising short-term interest rates and wait and see how economic developments and Washington policy debates play out in coming quarters, said St. Louis Fed President James Bullard on Friday. “Many future developments could impact [the Fed’s] policy path, but the Fed does not need to pre-empt any of them,” Bullard said in a speech to a bankers convention in Nashville. Optimism about the economy has faded since March with economic data surprising to the downside, he noted.

The St. Louis Fed president has been an outlier among his colleagues, calling for interest rates to remain basically flat through 2019. This is much lower than the median forecast of Fed economists, which calls for one more rate hike this year and three each in 2018 and 2019. Bullard said he saw no reason to raise interest rates as the economy appears to be firmly stuck in a “low growth, low-inflation and low-interest-rate regime.” Nick note: The Fed Reserve really  screwed up this time. The economy will soon be like a bus headed off a cliff. Once you go airborne their is no stopping the wreck.

JC Penney and Dillard’s are about to be kicked out of this big index

It’s summer, and trading is light, but here’s something that might perk your interest: Friday is usually the heaviest volume day of the year. It’s the annual Russell Reconstitution, the day when the Russell indexes are rebalanced. There’s $8.5 trillion in asset benchmarked to or invested in products based on the Russell U.S. indexes. Why is this important? Indexes rule the world because passive investing rules the world, and these indexes determine what go into many mutual funds and many ETFs. The main interest is to look at stocks that are going into or out of the large-cap Russell 1000, and into or out of the small-cap Russell 2000. Both are market-cap weighted indexes. Passive investors tied to these indexes will have to buy or sell these stocks depending on how the stocks have performed in the last year. The largest 1,000 by market cap go into the Russell 1000. The remaining roughly 2,000 go into the Russell 2000. The breakpoint — the dividing line between the Russell 1000 and the Russell 2000 — is about $3.4 billion. Nick Note: here is the cruelest Wall Street trick of them all.  ALL indices kick out the losers. That way silly people looking at the index to invest always see them going up. The problem is investors can’t kick out the losers until after they lose money. That is why its impossible for investors to get the return the indices show. The cruel trick is they kick out the losers and replace them with a new group of winners. Its a rigged game

How the mighty have fallen. This is where it gets a little fun — traders get to see who gets kicked out of the Russell 1000, and who has risen into the Russell 1000 from the Russell 2000.

Let’s start with the losers, because, well, there’s a morbid sport in looking at once-mighty companies that have seen better days.

No surprise, there’s some big retail names that are being given the boot: JC Penney, which is down to a mere $1.4 billion market cap, and Dillard’s, which is down to $1.5 billion, are both getting kicked out of the Russell 1000. Some former internet/tech darlings are also getting the boot: Groupon, Yelp and Fitbit.

Finally, it’s been a mess for oil companies, and plenty of names are getting tossed: Diamond Offshore, Noble, Ensco, Rown, Penn Virginia.

Steve DeSanctis, SMID-Cap Strategist for Jefferies, notes that the Russell 2000 has traditionally hosted companies on the way up, and then on the way down: “That’s one of the problems with the Russell 2000: You do get a heavy dose of companies that are well past their prime, companies that have to reinvent themselves after being a great company.”

Then there’s the other way around: small companies that are knocking the cover off the ball, and graduating to the Russell 1000.

The best example is AMD, which has had quite a year, going from roughly $5 to $14 in the last 12 months, and adding more shares to boot. “AMD was an also-ran years ago, but reinvented themselves and now they compete with companies like NVIDIA,” DeSanctis told me.

So will there be any price action? DeSanctis notes that stocks going from the Russell 1000 to the Russell 2000 often outperform short-term. Why? Because those stocks are going from being a small fish (a small market cap) in a big pond (the Russell 1000) to a bigger fish in a smaller pond (the Russell 2000). They will gain a larger market weight in the Russell 2000, which will force indexers to buy them, often resulting in a bump up in price.

Oil edges up, but still set for worst H1 performance in 20 years

Oil edged up on Friday, recovering some of the steep falls earlier in the week, but crude is still set for the worst first-half decline in two decades despite ongoing production cuts. Brent crude futures were at $45.39 per barrel at 0501 GMT, up 17 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 17 cents, or 0.4 percent, at $42.91 per barrel.

An oil pumpjack operates near Williston, North Dakota.

Andrew Cullen | Reuters
An oil pumpjack operates near Williston, North Dakota.

Oil prices have fallen about 20 percent this year despite an effort led by the Organization of the Petroleum Exporting Countries (OPEC) to cut production by 1.8 million barrels per day (bpd) that has been in place since January. That’s the worst first-half performance for crude oil since 1997, when rising output and the Asian financial crisis led to sharp price falls. The weak markets are a result of doubts over OPEC’s ability to rein in a fuel supply overhang that has dogged markets since 2014 as production has largely outpaced consumption. Nick Notes: Most of our oil trades are up 30% so far this year. Chump Change!  We will make a killing! please see Thursdays Radio Free Wall Street webcast  titled  Oil Market Crashing to see my thought on what will be a big trade for us.

Sterling falls to one-week low after Bank of England’s Carney says now is not the time to raise rates

BOE’s Carney on trade imbalances

BOE’s Carney on trade imbalances   Tuesday, 20 Jun 2017 | 1:01 AM ET | 02:44

Sterling fell by almost a full cent against the dollar on Tuesday after Bank of England governor Mark Carney said now was not the time to raise interest rates, dashing some investors’ hopes that the central bank had shifted in that direction. Speaking to London’s banking community alongside finance minister Philip Hammond a day after Brexit talks started, Carney cited weak wage growth, mixed signals on consumer spending and business investment as reasons for not moving to raise interest rates any time soon. Nick Note: The Pound is very vulnerable to how the Brexit negotiations pan out. I am not ready to short the pound just yet. The Euro is dead meat. We could see the worlds top currencies the dollar by far and a role for the Pound. if the Brits are smart they will position themselves as that offshore tax haven safe  place for the wealthy fleeing the European Union Collapse.

 

China’s bond market to surpass Japan as world’s second largest in five years: UBS

China’s bond market will double in size from the current $9 trillion over the next five years, overtaking Japan’s to become the world’s second largest behind the United States’, UBS Asset Management said in a report. Underpinning that growth is a law passed in 2015 to prohibit local provinces and cities from borrowing from banks. Instead, they were required to borrow in the public debt markets as Chinese authorities sought to transfer some risks away from banks. China’s rising debt and moderating growth have often been cited as a key risk to global markets as the country’s economic influence widens. Moody’s last month downgraded the country’s rating from A1 to Aa3 and flagged that its economy-wide debt levels were expected to increase further in the years ahead. Reforms were only likely to slow China’s growth rate, the agency said. In a note this week, PIMCO’s emerging markets portfolio manager Isaac Meng noted that the 10-year Chinese government bond yield sank below the one-year yield — which happened only once before, on June 2013, amid “a severe liquidity crunch in the interbank market.”Nick Note Warning Warning Chinese debt is on a verge of its biggest wipe out ever. And as you are seeing the bankers are trying to get the suckers into the game so they can unload on them

Gundlach says flatter Treasury yield curve could become a concern

The U.S. Treasury yield curve flattening could become a concern for economic growth when two-year and three-year Treasury note yields are about the same, and the price per barrel of WTI crude oil falls into the $30-dollar range, said Jeffrey Gundlach, chief executive at DoubleLine Capital, on Wednesday. The slope of the yield curve has been flattening in recent days, with short-term rates rising faster than longer-bond yields. This typically happens when monetary policy is tightened. Last week, the Federal Reserve raised its benchmark interest rate for the third time in six months, providing its latest vote of confidence in a slow-growing but durable economy. The Fed also announced plans to start gradually paring its bond holdings later this year. The yield curve between five-year notes and 30-year bonds flattened to 96 basis points, the narrowest since December 2007.

Nick Note: The yield cure is flattening. This is the LAST thing the FED wants.  Banks will be devastated as their short term cost of borrowing goes up as their long term lending pays them less. The interest rates spreads are flatting and that is death for a banker. this will hasten the coming bank wipe out.  Its the p rice they will pay for making the colossal mistake of raising rates as the global economy is slipping into a recession.

 

 

US oil settles at $42.53 a barrel, down 2.25%, after hitting 10-month low

Oil prices fell about 3 percent to a 10-month low in heavy trading on Wednesday, as nagging fears about the global crude glut fed a sell-off that was interrupted only briefly after news of a larger-than-expected drop in U.S. inventories. U.S. crude futures touched a low of $42.13, the lowest intraday level since August 2016. They closed at $42.53, down 2.25 percent. Since peaking in late February, crude has dropped by more than 20 percent. Rallies in that time have not been sustained as concern about inventories has prevailed over brief signals of rebalancing.  “The market wants proof that OPEC cuts are shifting petroleum balances, and it’s not getting it. Crude prices are now on the hunt to find the stress point for the U.S. producers and we’re not there yet,” said Anthony Headrick, energy market analyst at CHS Hedging LLC in Inver Grove Heights, Minnesota. Nick Note: As you know we have been screaming for years about the profound changes Fracking will make to the energy oil equation. Fracking is here to stay and its the biggest game changer in oil ever. Remember this is the start. Natural gas will be the transportation fuel of the future and $10 a barrel oil will mean the Sheiks of the middle east will go back to following their herds of sheep and harvesting dates.

Fed policymakers in tug-of-war on inflation, instability

The outlook for inflation and the future of financial stability are emerging as dueling concerns at the heart of a debate at the U.S. central bank over how fast to proceed on future interest-rate hikes. That is a change from years past, where high unemployment was at the top of the Federal Reserve’s worry list for the U.S. economy. But with the U.S. unemployment rate now at 4.3 percent, most Fed officials are now convinced that nearly all Americans who want jobs can and do get them. Fed Chair Janet Yellen expressed confidence inflation would eventually perk up, but some policymakers cast doubt. Chicago Federal Reserve Bank President Charles Evans on Tuesday became the latest to express worries on that front, saying he is increasingly concerned that a recent softness in inflation is a sign the U.S. central bank will struggle to get price pressures back to its 2 percent objective. “I will say that the most recent inflation data made me a little nervous about that. I think it’s much more challenging from here on out,” Evans said in an interview with broadcaster CNBC. Evans, who is a voter this year on the central bank’s rate-setting committee, said that global forces, not just specific one-off reasons, could be behind a retreat in inflation over the past three months. He said on Monday that he supports waiting until the end of the year before considering another rate hike. Speaking to reporters after a speech at the Commonwealth Club of California, Dallas Fed President Robert Kaplan had similar concerns, saying he wants to wait for more evidence that the recent retreat in inflation would be temporary. Nick Note: the Fed is baffled! Their models are not working and the economy is in a deflation and son to enter a depression. and they are in denial.

 

Oil falls as bulls discount OPEC cuts, set for worst H1 since 1997

Oil steadied on Wednesday, paring earlier losses, but was set for its largest price slide in the first half of any year for the past two decades, as investors discounted evidence of strong compliance by major producers with a deal to cut global output. August Brent crude futures LCOc1 were flat at $46.02 a barrel by 1107 GMT, having fallen earlier to seven-month lows. U.S. crude futures CLc1 for August delivery were up 4 cents at $43.55, having hit their lowest since September on Tuesday. So far this year, oil has lost 20 percent in value, its worst performance for the first six months of the year since 1997. Compliance with an agreement by the Organization of the Petroleum Exporting Countries and other producers to cut output by 1.8 million barrels per day from January reached its highest in May since the curbs were agreed last year.”The slide in oil prices seems to be unstoppable,” said Julius Baer commodities research analyst Carsten Menke. Nick Note: they will regroup and counter attack. Reality is oil is the most over valued commodity in the world. OPEC has a impossible tack in the long run. The fracking revolution is changing the emery equation forever

 

Brussels in denial over EU crisis: Out-of-touch Eurocrats failing to tackle rising public anger across the continent

Significant splits have opened up between the European Union’s so-called gilded elite and the ‘simmering discontent’ of ordinary citizens, a damning report has revealed. A withering study by a major think-tank found a ‘visible divide’ between the opinions of Eurocrats and the bloc’s population of 508million. The data – based on a survey of public opinion – showed a ‘continent split’, according to London-based international affairs organisation Chatham House. The wider public were more likely to express concerns over a range of contentious political issues changing the face of Europe, from the huge influx of immigration and the power wielded by the EU over sovereign states. Nick Note: The EU has a great big problem. it was a shotgun wedding to begin with. Now that Italy, Spain, Greece and Portugal are in a recession with their banks broke the pressures are enormous. The masses blame their increasing poverty on EU membership. And they are partially right. The EU will not fal apart. it will burst apart at the seems as the southern members go back to their original currencies to discount their massive debts

Paul Ryan: US can’t hit 3% growth without tax reform

House Speaker Paul Ryan believes the United States cannot reach 3 percent gross domestic product growth — the Trump administration’s goal — without overhauling the tax system “I do believe you cannot even get close to 3 percent if you don’t get this kind of fundamental fiscal policy put to place. So I think tax reform’s absolutely essential for getting faster economic growth that’s durable, long-lasting,” the Wisconsin Republican told CNBC’s “Power Lunch” on Tuesday. Since Republicans won the White House and both chambers of Congress, they have pushed for overhauls of the U.S. health-care and tax systems and moved to slash regulations, saying those measures will help the U.S. break out from sluggish economic growth. But the GOP has faced early setbacks in achieving its legislative agenda, particularly in its effort to pass an Obamacare replacement. Nick Note: two things. The US economy cannot and will not grow at 3%. And no meaningful  tax legislation will be passed.

 

The booming stock market is in denial, economist David Rosenberg warns

Fresh stock market records could be creating a false sense of security in the market. Gluskin Sheff’s David Rosenberg, one of the first Wall Street strategists to turn bullish following the 2008 financial crisis, says investors could be taking on a lot more risk than they think by pouring money into U.S. equities. It comes as an anomaly continues in the market. Bond yields, a “safe haven” asset, have been falling while stocks have been rising.  Rosenberg’s latest comments come on a day when the Dow and S&P 500 closed at all-time records. Plus, the Nasdaq had its best day of the year, closing up 1.42 percent. Rosenberg, Gluskin Sheff’s chief economist and strategist, has been warning a day of reckoning is coming. He has been telling investors since September that a “perfect storm” correction is coming. Nick Note: another warning about a stock market crash that is baked into the cake

Oil prices are tumbling more than 2% right now, entering bear market

 

Oil prices continued to search for a bottom on Tuesday, falling more than 2 percent to fresh seven-month lows on signs of rising production in key parts of the world. U.S. West Texas Intermediate crude oil futures were last down $1.21, or 2.7 percent, at $42.99. WTI fell on Tuesday to the weakest intraday prices since Nov. 14, when the contract hit $42.20 a barrel. Prices for WTI’s August contract, which becomes the front-month tomorrow, were down $1.20, or 2.7 percent, at $43.23. Trading volume on Tuesday was concentrated in the August contract. Nick Note: we are well positioned to enjoy this move….. Its far from over

Argentina sees strong demand for surprise 100-year bond

Argentina sold $2.75 billion of a hotly demanded 100-year bond in U.S. dollars on Monday, just over a year after emerging from its latest default, according to the government. The South American country received $9.75 billion in orders for the bond, as investors eyed a yield of 7.9 percent in an otherwise low yielding fixed income market where pension funds need to lock in long-term returns.

A trader works on the floor of the Buenos Aires Stock Exchange in Buenos Aires, Argentina

Diego Giudice | Bloomberg | Getty Images
A trader works on the floor of the Buenos Aires Stock Exchange in Buenos Aires, Argentina

Thanks to a stronger-than-expected peso currency, the government has increased its overall 2017 foreign currency bond issuance target to $12.75 billion from its previous plan of issuing $10 billion in international bonds, Finance Minister Luis Caputo told reporters in Buenos Aires. Still, the move came as a surprise given Argentina only last year ended a decade-long dispute with creditors over its 2002 default and residents tend to frown upon accumulating debt in dollars. Nick Note: a 100 year bond. Get this just a year ago they defaulted on the same bonds different maturities. So they go back to the market and offer 100 year bond. Now you see while more and more quality government bonds are yielding so low and negative

Fed’s Evans says may be worth waiting to year-end to assess next rate hike

Chicago Federal Reserve President Charles Evans said on Monday it may be worthwhile for the U.S. central bank to wait until year-end to decide whether to raise rates again. Given the recent softening in inflation data, “I don’t see why we would not be served to allow more time to wait,” Evans told reporters after his speech before the Money Marketeers of New York University. In earlier prepared remarks, Evans said with inflation stubbornly soft despite a 16-year low in the U.S. unemployment rate, the Federal Reserve should move only slowly to raise interest rates and trim its massive bond portfolio.  “The important feature is that the current environment supports very gradual rate hikes and slow preset reductions in our balance sheet.”Repeating much of a similar talk he gave in May, Evans said that while the Fed had essentially achieved its goal of full employment, it has had a “serious policy outcome miss” on its other goal of 2 percent inflation. Nick Note: They really screwed up this time. As the US economy in a deflation enters a full blow recession/depression they screwed up big time. They raised rates in a deflation and that is a big NO NO!

A bubble is a bubble.. even if it has not popped….YET

There may be trouble ahead for the U.S. stock market, two experts warned on Monday. Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, said there is a little enthusiasm and a bit of chasing going on right now in the market. “Valuations are stretched. There’s plenty of headwinds in the second half so I don’t think the market is going to trade much higher than where we are right now before rolling over,” he said in an interview with “Power Lunch.” The problem is that investors are betting on tax reform from Washington, D.C., and “at best” there may be something in 2018, he explained “Nothing might happen. If nothing happens and we don’t get any fiscal push here, you’ve got to think about a recession in 2019,” Wren said. Mark Eibel, client investment strategies director at Russell Investments, agrees. Until there is tax reform, there will continue to be low volatility and risk to the downside, he said.”You’re banking on Congress at this point to take you higher. I don’t know if I want to be on that side of the trade,” he told “Power Lunch.” Nick Note: Trumps agenda was a political get elected ploy at best. The truth is buy into make America great again or not, Trump will be occupied. That is trying to keep himself in office and his family and close friends out of jail. No time for great again! These special prosecutors can be such a nuisance.

 

Trump nominates Dodd-Frank opponent to police Wall Street

Pedestrians walk along Wall Street near the New York Stock Exchange.

Michael Nagle | Bloomberg | Getty Images
Pedestrians walk along Wall Street near the New York Stock Exchange. Donald Trump has taken a big step towards loosening the shackles on Wall Street by nominating a Capitol Hill aide involved in efforts to rip up the Dodd-Frank act as one of the US’s most powerful bank regulators. Jim Clinger, a former aide to conservative lawmaker Jeb Hensarling, was nominated by the president to chair the Federal Deposit Insurance Corporation, a regulator whose tasks include winding down failing banks. Mr Clinger was named as Wall Street banks lower their expectations for an overhaul of Dodd-Frank in Congress and pin their hopes instead on Trump-appointed regulators watering down rules within existing law. Highlighting the importance of appointees, Gary Cohn, the former Goldman Sachs president who now heads the White House’s economic council, said earlier this year: “Personnel is policy.” Nick Note: we are on the verge of another banking wipeout. How many times do we need to learn the same lesson over and over again. Most of Dodd Frank banking reforms  were never enacted. And what little that has been put in place will now be watered down. The  derivative market is bigger then ever with no i repeat no regulation. Funny i seem to remember President elect and chief bullshitter Donal Trump talking about putting a leash on Wall Street and bringing back the Sarbanes Oxley legislation from the last great depression. Well he lied about everything else why should bnak reform be any different

Some global investors see fresh worries in an old problem: China

Bank of America-Merrill Lynch, fund managers in May named China the biggest potential source for an unpleasant surprise for global markets. The investor services firm Moody’s also downgraded China’s sovereign credit rating last month, its first such move in 28 years.  China resorted to pumping up credit, adding to an already mountainous pile of debt. According to the Bank for International Settlements, China  debt has  reached 257 percent of its gross domestic product at the end of 2016. They warned that debt in China “has risen far faster than in almost any other major economy on record,” and that its continued buildup was the “biggest risk facing emerging Asia.” Policy makers in China appear more worried, too. In late May, the government indicated it would tighten its grip (manipulation) on its currency the Renminbi, stepping back from a longstanding commitment to allow market forces a greater role in its valuation. Nick Note: China will at some point wipe out and it will take a big part of the global financial system with it. The amount of debt in China hidden defies comprehension. And when China screw the world by defaulting their is no recourse. Banks are not allowed to sue never mind collect one single dime in a Chinese bankruptcy…… amazing what they forget to tell you.

Oil prices dip on further rise in U.S. drilling, demand slowdown

Oil prices dipped on Monday, weighed down by a continuing expansion in U.S. drilling that has helped to maintain high global supplies despite an OPEC-led initiative to cut production to tighten the market. Signs of faltering demand have also prompted weakening sentiment, dropping prices to levels comparable to when the output cuts were first announced late last year. Prices for both benchmarks are down by around 14 percent since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended their pledge to cut production by 1.8 million barrels per day (bpd) by an extra nine months until the end of the first quarter of 2018. There are also indicators that demand growth in Asia, the world’s biggest oil-consuming region, is stalling. Nick Note: Global demand slowing at the same time global production is increasing. This is a oil price bust and oil and energy company wipe out. And as you know we have long standing trades for that.

 

Fed’s rate hike should have ‘erred on the side of caution’ as growth weakens

After nearly years of crisis-era zero interest rates, this week the Federal Reserve raised its key interest rate for the second time in just three months.After last week’s quarter point rate hike, the Fed Funds Target Rate now stands at 1.25 percent, which is still very low by historical standards. In doing so, the Fed is signaling its confidence in the economy—which is growing, albeit modestly.  In the first quarter, the economy grew at a marginal 0.7 percent rate, its weakest in three years.  In May, retail sales were down 0.3 percent, a much steeper decline than the 0.1 percent economists predicted. Because consumer spending accounts for more than 2/3 of the economy, a downturn could be sign of trouble ahead for the economy. Nick Note: one of the things that drove the stock market crash of 1929 and the depression of the 1930’s was first over stimulation by the Fed Reserve. Then as the economy was entering a recession they raised rates just like they did now.

 

ETFs see nearly $500B in 12 months; top $3T

The snowball of ETF asset growth is speeding up, thanks in large part to investors’ obsession with cost. We all took pause when the U.S. ETF market hit a record $287.5 billion in net creations in 2016. But consider that the asset haul on a trailing 12-month basis is currently $466.4 billion, according to Bloomberg data. That’s right. The ETF market has gathered nearly half a trillion dollars in the past 12 months alone. If this pace holds, the industry will hit that $500 billion-a-(trailing)-year mark before the summer is over. That figure is practically double what it was a year ago, and it’s something the industry has never really seen before. Nick Note: ETF’s are derivatives trading for the little guy leveling the playing field. The really good part is their is now plenty of liquidity… especially on the other side of  our trades.

Weak inflation erodes conviction at Fed on rate hikes

When the Federal Reserve raised rates earlier this week, Fed Chair Janet Yellen expressed confidence that recent weak inflation readings were transitory. Fed officials on Friday signaled that doubts are simmering. In an interview with Reuters on Friday, Minneapolis Federal Reserve President Neel Kashkari said he was not alone at the U.S. central bank in his view the Fed should have waited to raise interest rates until it was sure the recent drop in price pressures really is temporary. “I wish other people were joining me in my dissents, I’ll say that,” Kashkari said in a phone interview with Reuters. “I think that there’s more sympathy for my views, but maybe people aren’t ready to take action.” Kashkari was the lone policymaker to vote against the Fed’s decision on Wednesday to raise its benchmark lending rate.  “The run of weaker core inflation readings has clearly rattled some Fed officials,” Capital Economics wrote in a note to clients earlier on Friday. Nick Note: The FED rate hikes during a deflation soon to become a recession/depression is a colossal and classic mistake. AS you can see some of the Fed officials are staring to figure it out.

 

Crude oil’s plunge below $50 a barrel is killing the oil and gas IPO market

Energy companies aiming to go public are staying on the sidelines as crude prices struggle to keep above $50 a barrel, analysts and investment professionals say. The price weakness has halted a recovery in stock debuts in the energy sector, which typically accounts for one-tenth of the overall IPO market. U.S. West Texas Intermediate crude futures slipped to a fresh a seven-month closing low below $45 a barrel on Thursday after plunging nearly 4 percent in the prior session. Nick Note: Bottom line the oil market is still vastly oversupplied. Fracking decreases the cost of production while at the same time increasing the recoverable oil and natural gas. And most all oil companies business models need oil over $60 a barrel. And we are headed for $10 a barrel which means a whole lot of oil companies are going to go broke. And we have trades for $10 a barrel oil and the coming wipe out of oil and energy company.

 

Negative-yielding government debt ‘supernova’ jumps to $9.5 trillion

The staggering level of government debt carrying negative yields, after falling from its peak a year ago, is back on the rise. A slew of factors converged in May to send the global total to $9.5 trillion of sovereign debt — a situation where governments effectively are getting paid to borrow money, according to Fitch Ratings. The total represented a 10.5 percent increase from April. Prominent investors have warned of the dangers of so much negative-yielding debt. Janus Henderson’s Bill Gross has called it a “supernova” that will “explode,” while Deutsche Bank CEO John Cryan has cautioned about “fatal consequences” of central banks being enticed by slashing rates to that extent. Nick Note: i am telling you  I believe bond yields will go double digit negative and we have a trade for that. its our Zero Coupon Bond Trade

 

Preliminary June consumer sentiment at 94.5 vs 97.1 expected

Consumers were much less optimistic than economists had expected in June, according to a preliminary reading. The University of Michigan’s Consumer Sentiment Index dropped to 94.5 in June, well below economists’ expectations for a reading of 97.1 during the month, according to Thomson Reuters consensus estimates. Nick Note: People know their is a slow down they are not eating out, buying cars or homes….

U.S. stock ETF inflows balloon to largest of 2017: Lipper

Investors raced into U.S.-based, stock exchange-traded funds this past week despite market jitters, delivering the most cash to those funds since late last year, Lipper data showed on Thursday. Stock ETFs listed in the United States attracted $17.7 billion during the week ended June 14, according to the research service, while their mutual fund counterparts recorded $6.8 billion of outflows in their largest week of withdrawals since April.. The result came as investors grappled with pressure on oil prices, soft economic data and an interest-rate hike by the U.S. Federal Reserve, the second rate hike this year. A massive rotation out of technology shares, such as the so-called FANG stocks – Facebook Inc, Amazon.com Inc, Netflix Inc and Google-parent Alphabet Inc – and into beaten-down sectors, including financials, that began last Friday and resumed this week. Nick Note: this is a slight tremor warning about the coming earthquake. the Stock Market as in ALL stocks are about to enter a epic crash. They will lose over half their CURRENT price. Be warned you go to do this exactly right because the coming bankruptcies and counter party defaults mean you could be right and still not get paid!

 

US factory output fell 0.4 pct. in May as car sales slump

U.S. factory output fell last month as manufacturers cranked out fewer cars, computers and semiconductors,  a sign that economic growth remains sluggish. Factory production slipped 0.4 percent in May. Manufacturing output has largely been flat since February. Overall industrial production, which includes mining and utilities, was unchanged in May. Mining activity posted a large gain for the second straight month, rising 1.6 percent. Much of that increase has been driven by greater oil and gas drilling. Utility production rose 0.4 percent. U.S. manufacturing has shown some signs of life this year after almost no growth in 2015 and 2016. Americans are buying fewer cars, after sales reached record levels last year. They have now fallen for five straight months. Automakers responded by slicing output 2 percent in May. General Motors said Wednesday that it would extend a summer shutdown in at least two Midwestern factories to five weeks from the traditional two weeks. The economy is forecast to grow at a roughly 3 percent annual pace in the current April-June quarter, after tepid growth of just 1.2 percent in the first quarter. But that increase likely reflects a bounce back from the first quarter’s weakness and isn’t expected to be sustained. Growth for all of 2017 is forecast to come in at 2 percent. Nick Note:  Another economic report that is a disaster. they keep getting worse and worse

Prices of imported goods post steepest drop in 15 months

The price of imported goods fell in May by the largest amount in 15 months, Further proof U.S. inflation has cooled off after a sharp runup last year. It’s the second decline in three months and the steepest drop since February 2016.

U.S. Import and Export Price Indexes Transmission of material in this release is embargoed until USDL-17-0818 8:30 a.m. (EDT) Thursday, June 15, 2017 T

– MAY 2017 U.S. import prices declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today, after increasing 0.2 percent in April. Lower fuel prices drove the decrease in May and nonfuel prices recorded no change. The price index for U.S. exports declined 0.7 percent in May following a 0.2-percent advance in April. Imports All Imports: Import prices decreased 0.3 percent in May, the largest monthly drop since the index fell 0.5 percent in February 2016. ease in March.  Nick Note: This is a further sign of the deflation we have entered. You don’t import deflation except in a global recession. And here is another news flash. We are entering into a global deflation OBVIOUSLY.  And that is why global prices are crashing….. ASK OPEC if they have a problem.

Oil hits six-week low as OPEC fails to curb oversupply

Oil prices dropped to six-week lows on Thursday, under pressure from high global inventories and doubts about OPEC’s ability to implement agreed production cuts. Brent crude oil LCOc1 fell 30 cents to $46.70 a barrel, its weakest since May 5 and just above six-month lows, before recovering a little to trade around $46.85 by 1150 GMT. U.S. light crude CLc1 was down 25 cents at $44.48, also not far off six-month lows. Both crude benchmarks have lost all the gains made at the end of last year after the Organization of the Petroleum Exporting Countries agreed with other big producers to cut output in an effort to prop up prices. OPEC and its allies have promised to restrict output until at least the end of the first quarter of next year to try to drain surplus supply. But inventories are near record highs in many parts of the world, and many traders expect further price falls. Nick Note: Oil is still big news. Make sure you have your trades in place. OPEC is screwed. No way they can cut as fast as supplies are increasing. Next game is to cook the books. Under supply the US market to make it look like inventories are dropping. That’s OK i know how to take advantage of that game when the times come

 

Oil Holds Losses Below $45 on Surprise U.S. Gasoline Supply Gain

Oil held losses below $45 a barrel after sliding to the lowest in seven months as U.S. gasoline supplies unexpectedly rose for a second week. Futures were little changed in New York after slumping 3.7 percent Wednesday, the first drop in four sessions. Motor fuel stockpiles expanded by 2.1 million barrels last week, the Energy Information Administration reported. Most analysts surveyed by Bloomberg had forecast a decline. Crude output rose while nationwide inventories fell less than predicted. Oil has declined almost 8 percent this month amid speculation increasing U.S. supplies will offset production curbs by the Organization of Petroleum Exporting Countries and its allies including Russia. New supplies from OPEC rivals will be more than enough to meet demand growth next year, the International Energy Agency said Wednesday in its first forecast for 2018. “Demand is not as strong as expected and supply continues to increase despite softer prices,” said Michael McCarthy, a chief market strategist at CMC Markets in Sydney. “There are a lot of reasons to be selling oil. It looks like the downward momentum will continue.” Nick Note: Sooner or later they will figure out they got Frackked! Ten dollar oil here we come

U.S. business inventories drop 0.2% in April

U.S. business inventories fell 0.2% in April, the government said Wednesday. The inventory-to-sales ratio, an indication of demand, was unchanged at 1.37 months. At April’s sales pace, that’s how long it would take for businesses to clear their shelves. U.S. businesses decreased their stockpiles in April by the largest amount since October, while sales were flat.The Commerce Department says business inventories fell by a seasonally adjusted 0.2 percent in April, following March’s gain of 0.2 percent. Sales were flat after contracting 0.1 percent in March. Economic growth as measured by the gross domestic product slowed in the January-March quarter, in part because inventories subtracted from overall economic activity. Annual GDP growth was just 1.2 percent in the first quarter. But economists think second quarter GDP growth will strengthen significantly. Nick Note: Holy Shit Batman this is BAD. YOUR damn right Robin its a freeging BATASTER!

you get my drift another sign of the dark storm clouds on the near horizon.

Millionaires own a record 45% of the world’s wealth — and their share is growing

The world’s millionaires, who represent the top 1 percent of the population, now own a record 45 percent of the global wealth and their share is growing, according to a new report. There are now 17.9 million households in the world, up 8 percent from 16.6 million last year, according to a report from The Boston Consulting Group. The U.S. has the most millionaires, with over 7 million millionaire households, with China ranking second with 2.1 million. The world’s millionaires own over $75 trillion in wealth, or 45 percent of the $167 trillion in total personal wealth in the world, according to the report. Their share is up from 44 percent in 2015. By 2021, the world’s millionaires will control $115 trillion in wealth, or 51 percent of the world total, according to the report. Nick Note: And how  do you think that got so freeging wealthy? and how do you think they are able to keep their wealth increasing.? Why its these wipe outs  they throw every 5 to 10 years. And I am here to warn you another wipe out of the masses is coming. They are going to grab the baby boomers wealth. Who have been convinced that buying junk bonds, trading algorithms and high frequency trading is retirement savings. And buying stocks is a high yielding savings account. 

Consumer prices declined in May

Consumer prices declined in May, reflecting a big drop in energy prices and smaller declines in a number of other areas. It was the second monthly decline in the past three months and underscores how inflation has been a no-show in the slow-growing U.S. economy.
Consumer prices edged down 0.1 percent last month following a small 0.2 percent increase in April, the Labor Department reported Wednesday. Prices had fallen 0.3 percent in March. In addition to a drop in energy costs last month, the price of clothing, airline fares and medical care also declined. Core inflation, which excludes energy and food, rose a slight 0.1 percent in May. “From out of nowhere we have now had three months of unusual weakness in underlying prices,” said Paul Ashworth, chief economist at Capital Economics. The Fed’s preferred measure of inflation, tied to consumer spending, has been below 2 percent for five years and in recent months slipped back a bit.In May, food costs edged up a tiny 0.2 percent while energy costs fell 2.7 percent, led by a 6.2 percent drop in the price of gasoline.  Clothing costs dropped 0.8 percent in May while the cost of new cars and used cars both fell 0.2 percent. Nick Note: their is no inflation their will be no inflation. We are in a deflation (recession soon) that will end up in another Great Depression

 

US retail sales slide 0.3 percent, biggest drop in 16 months

Americans cut spending at gasoline stations, department stores and electronics shops in May as retail sales registered their biggest drop in 16 months, a cautionary sign for the economy. The Commerce Department said Wednesday that retail sales dropped 0.3 percent, the first decline since February and the sharpest since a 1 percent decrease in January 2016. Economists had expected sales to increase slightly in May after rising 0.4 percent in April. Last month, sales fell 2.8 percent at electronics stores, the biggest such drop since March 2016. They fell 2.4 percent at gasoline stations and 1 percent at department stores, which have struggled with competition from online retailers. A slump in consumer spending about 70 percent of U.S. economy early this year is a key reason why the economy expanded at only a lackluster 1.2 percent annual pace from January through March. The Trump administration has said it can accelerate economic growth to 3 percent a year by cutting taxes, loosening regulations and pouring money into roads, bridges and other infrastructure projects. Nick Note Further proof we are heading into a deep dark recession that will turn into a full fledged depression especially if Trump gets driven out of office.

US oil production seen thwarting OPEC effort to boost prices

(AP) — The International Energy Agency says OPEC’s plan to cut production and support prices are likely to be undone by increased output in non-OPEC countries like the U.S. If correct, that could keep a lid on oil prices as a glut of supply grows despite the efforts of countries in the OPEC cartel and allies like Russia to limit production. The IEA said in its monthly oil report Wednesday it expects non-OPEC production to grow 700,000 barrels daily this year and 1.5 million barrels next year, “which is slightly more than the expected increase in global demand.” It said it “makes sobering reading for those producers looking to restrain supply. Global oil demand is expected to grow by 1.4 million barrels per day to a record level of 9.3 million barrels per day in 2018, according to the International Energy Agency (IEA) oil market report published on Wednesday.  In the meantime, global oil supply is set to increase by 1.5 million barrels per day in 2018, doubling the growth rate of 2017. This, in turn, will greatly offset the efforts made by the OPEC countries and other major oil producers led by Russia. Nick Note: This latest estimate of oil production, as is  usually the case with the OPEC controlled IEA, is understating the coming supply increases. The price of crude wil continue to plunge this year and next. Once we get under $30 a barrel the oil companies will be dropping dead  like  chickens at a slaughter house. Nick Note: don’t be fooled oil is doomed to trade at $10 a barrela nd many many oil companies wlil go broke their shares and debt worthless. And they will still produce oil in record amounts as they exit bankruptcy

Gundlach warns U.S. low-risk financial environment could change

The lengthy low-risk, low-volatility U.S. financial environment should not be viewed as a “new paradigm,” influential bond investor Jeffrey Gundlach said on a webcast on Tuesday.  “We’re on increasing watch for volatility,” Gundlach said, pointing out that “there is a massive amount of money that is being short VIX. “It’s a trade that’s made a lot of money and it’s very very crowded, which suggests to me the days of low volatility are numbered,” he said. We “probably won’t see it continue through year end. All told, short-term investors should brace for a rocky summer, Gundlach said. “If you’re a trader or a speculator, I think you should be raising cash today literally today. If you’re an investor you can easily sit through a seasonally weak period,” Gundlach said. Nick Note: What Gundlach calls a “weak period” I call the prelude to the biggest stock market crash ever. The warning signs are everywhere.

 

Wholesale prices were flat in May

Inflation at the wholesale level stayed unchanged in May as food and energy prices slipped. The Labor Department says its producer price index, which measures inflation before it reaches the consumer, was flat in May after a 0.5 percent monthly gain in April. Over the past 12 months, producer prices have risen 2.4 percent — with rising gasoline and natural gas costs being a key driver. But energy and food prices weakened in May. Energy prices fell 3 percent in May, while food costs ticked down 0.2 percent. Prices did rise for services such as car rentals and retailing clothing, jewelry, footwear and accessories. Core inflation at the wholesale level, which excludes food, energy and trade services, fell 0.1 percent in May. Nick Note: Its obvious inflation is dead. it is also obvious the US economy is sucking shut,

U.S. shale firms more exposed to falling oil prices as hedges expire

Cash-strapped U.S. shale firms scaled back their hedging programs in the first quarter, leaving them more vulnerable to tumbling spot market prices just after OPEC reached a landmark deal to curb global supply. The pullback in hedging was driven by rising service costs and expectations that prices would continue to rally after the Organization of the Petroleum Exporting Countries extended those cuts in May, analysts said. The market peaked at $55 a barrel in January as cuts got under way, but has struggled since, and closed Monday at $48.29 a barrel [O/R], barely changed from the end of November, when OPEC agreed with nonmembers to cut 1.8 million barrels a day in supply. According to a Reuters analysis of hedging disclosures by the 30 largest U.S. shale firms, most stayed on the sidelines in the first three months of 2017, a stark contrast from a year ago when firms rushed to lock in prices, even though oil was trading $15 a barrel lower. Nick Note: as you are seeing more and more oil coming to market no matter the price.   And in the spring rally the idiot bankers that have overlent to the oil industry had them stop their hedging operations. Which means they will produce oil  even in bankruptcy. Make the trade and we should cash in on this insanity big time

Treasury Secretary Mnuchin says US can pay its bills through early September

The Trump administration has a backup plan to keep the government from defaulting on its financial obligations even if Congress misses an August deadline to raise the debt limit, Treasury Secretary Steven Mnuchin told a congressional panel Monday.Mnuchin had previously set an August deadline for the federal government to avoid a catastrophic default. Mnuchin said he still prefers that Congress increase the government’s authority to borrow before lawmakers leave on a five-week break in August. However, he said he is “comfortable” that the Treasury Department can meet the government’s financial obligations through the start of September. Nick Note: The  way things look right now the debt ceiling increase will be held hostage to the Trump crises. Even if its a great big stinky fight for sure without a doubt all Treasury obligations will be met for sure. That fact will not stop the debt default hysterics.

 

Now bitcoin is crashing along with the drop in technology stocks

Bitcoins

Getty Images

Bitcoin suddenly plummeted Monday, after breaking higher over the weekend to an all-time high. The decline came as major U.S. technology stocks fell for a second-straight day on concerns that the sector has risen to unsustainable levels. At least two major bitcoin exchanges also had problems Monday. “Coinbase is currently experiencing high traffic & customers have receive(d) a “service unavailable” message when visiting Coinbase.com,” according to a statement on the exchange’s status website dated June 12 at 2:08 p.m. ET. The exchange accounts for nearly 17 percent of U.S. dollar-denominated bitcoin trade volume, according to Cryptocompare, and had reported outages in late May amid “unprecedented traffic and trading.” Nick Note: as you know i don t like Bit coin at these numbers. i got out at $2,800. its to high for me i got a nose bleed. This is not investing. its gambling pure and simple

US stocks fall further as technology tumble continues

U.S. stock indexes are declining Monday as technology companies continue to sink. Investors are selling some of the best-performing stocks of the year. TECH SELL-OFF: Big-name technology companies continued to fall. The stocks gave up a month of gains Friday, and on Monday, Apple shed $4.03, or 2.7 percent, to $144.95 while Google parent Alphabet lost $13.16, or 1.4 percent, to $956.96. Facebook fell $1.79, or 1.2 percent, to $147.81 while Microsoft sank $1.15, or 1.6 percent, to $69.17. Technology stocks have done far better than the rest of the market this year and were trading close to all-time highs before Friday’s drop. The S&P 500 technology index shed 2.7 percent Friday, one of its worst drops of the year. Nick Note: this is the kind of break i like to sell into. We got ourselves a TECH bubble for sure. And I believe within the next 12 months we will have another TECH wreck.

Apple shares plunge 7% in two days on downgrade, valuation concerns

Apple shares fell as much as 4 percent Monday morning, on track for a second-straight day of losses due to mounting concerns about unsustainably high stock prices. The iPhone maker has now lost 7 percent of its value in just two days. The decline Monday came after Mizuho downgraded the stock to neutral from buy and lowered its price target to $150 from $160. The iPhone maker’s stock fell 3.9 percent Friday as major tech stocks suddenly plunged. It was down 2.9 percent to $144.65 as of 10:40 am ET Monday. The stock closed at $154.99 last Thursday before the big selling began. Nick Note: I hope your paying attention here. if you wait to see before you increase your positions you will miss the train. The market will collapse and lose more then half its value WITHIN the next 6 months.

Gymboree files for Chapter 11 bankruptcy; CFO leaves retailer

Gymboree has filed for Chapter 11 bankruptcy protection. The children’s clothing retailer announced the move Monday morning, only a few weeks after it partnered with a turnaround firm, AlixPartners, to assist with its operations and then missed a June 1 debt payment. A bankruptcy filing had been seen as imminent, with S&P Global lowering its corporate credit rating on the company to “D” from “CC.” Gymboree also announced Monday the departure of Chief Financial Officer Andrew North, who is leaving for personal reasons. Nick Note: As you can see the bankruptcies have started. All that “high yielding” junk bond debt will wipe out. A whole lot of people think they have money in their retirement accounts. Soon they will find Wall Street has filled their retirement accounts chock full of shit… worthless debt!!

Sell for the summer as the stock market’s next 5% move is down, Deutsche Bank says

Deutsche Bank strategist David Bianco is betting the S&P 500  is heading south. The next move of 5% or is “more likely down than up,” Bianco and his team wrote in a note dated Friday. “The rally so far is justified, but we think it has reached its near-term limits and is vulnerable to summer fatigue and rising anxiety over whether Congress can make pragmatic decisions,” the Deutsche Asset Management team said. The Deutsche Bank strategists also said they are cutting back on stocks. “In accordance with the change of our S&P directional view from balanced risk to down, we tactically lower our equities allocation from 70% to 60%,” they wrote. Nick Note:  The rising choir of annalists turning negative is a warning sign. When the down turn comes in the next 6 to 12 months their will be a blood bath on Wall Street.

 

China’s monthly vehicle sales post first back-to-back drop since 2015

BEIJING, June 12 (Reuters) – Chinese auto sales slipped in May from a year ago, registering two straight months of declines for the first time since 2015, with the automakers’ association saying the weakness may drag on as the rollback of a tax incentive continues to hurt. Auto sales in China fell 0.1 percent in May from a year ago to 2.1 million vehicles, China Association of Automobile Manufacturers (CAAM) said on Monday. In April, sales recorded their steepest fall in 20 months. Nick Note: another sign of the spreading global slow down. Remember global auto manufactures were counting on double digit China Auto sales to bail them out…. Not wipe them out

Japan April core machinery orders fall 3.1 pct mth/mth

TOKYO, June 12 (Reuters) – Japan’s core machinery orders fell 3.1 percent in April from the previous month, down for the first time in three months, in a sign capital expenditure lacks momentum, Cabinet Office data showed on Monday. The fall in the core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months. Nick Note: Proof of the spreading global slow down. This indicator shows us the Japanese export power house is seeing a massive slow down in orders

Trump WON’T promise not to fire Special Counsel Robert Mueller says president’s attorney – arguing he’s a ‘unitary executive’

President Trump’s attorney Jay Sekulow wouldn’t pledge the president to keeping around Special Counsel Robert Mueller. Sekulow, part of Trump’s legal team outside the White House, sat down Sunday with ABC News’ George Stephanopoulos . The attorney argued that Trump is a ‘unitary executive,’ suggesting it would be in his power to remove Mueller, who’s now in charge of the Russia probe. Nick Note: i fear it is possible as he is  getting crazier by the day. President Trump could fire the special prosecuter if he felt he is getting to close to the truth. This will throw the country into a constitutional crises the likes of which we have never seen. And this is a market wipeout kind of event 

Restaurant Industry same-store sales fall again in September MillerPulse data weak for both quick-service and casual-dining chains

Same-store sales fell 0.1 percent in September, according to the latest restaurant survey data from MillerPulse, making it the fifth month out of the past six where industry same-store sales were negative. Traffic fell 2.2 percent, and was equally bad at both quick-service restaurants (down 2.2 percent) and casual-dining concepts (also down 2.2 percent). Combined, the industry-wise weakness has stumped observers and analysts. Restaurant executives so far this earnings season have provided a lot of reasons for the weakness, including generalized “economic uncertainty” along with more specific uncertainty due to the election. Nick Note: a further iron clad sign of the economic crises that is slowly spreading over the entire economy. The warning signs are everywhere retail sales, car sales and restaurant sales are all headed south. The US consumer 70% of the US economy  is spent out, deep in debt and going broke

 

 

 

‘Horrendous storm’ to hit stocks, Wall Street not rational: David Stockman

If David Stockman is right, Wall Street should hunker down. “This is one of the most dangerous market environments we’ve ever been in. It’s the calm before a gigantic, horrendous storm that I don’t think is too far down the road,” he recently said on “Futures Now.”Stockman, who was director of the Office of Management and Budget under President Ronald Reagan, made his latest prediction after lawmakers grilled former FBI Director James Comey over whether President Donald Trump tried to influence the Russia investigation. Nick Note: another voice warning about the coming biggest stock market crash ever. This wipeout has the power to make you fabulously wealthy OR fabulously poor…. you decide

 

Trump accuses ex-FBI director Comey of cowardice over ‘leaks’

Washington (AFP) – US President Donald Trump on Sunday accused James Comey of cowardice by leaking accounts of his meetings with the president, days after the ex-FBI director testified that Trump sought to derail the Russian probe. “I believe the James Comey leaks will be far more prevalent than anyone ever thought possible,” Trump wrote in an early morning tweet. “Totally illegal? Very ‘cowardly!'” Sacked FBI chief Comey delivered his bombshell allegations at a Senate hearing Thursday, saying in his sworn testimony that he had asked a “friend” identified as a Columbia University law professor to release a memo of his conversations with the president to the press. Comey said he had hoped releasing the information via the media would prompt the appointment of a special counsel to handle the Russia probe, a ploy that ultimately proved successful. Nick Note: The fact Comey “leaked” released his personal documents does not mean squat. This is nothing short of desperate spin. Trump has got himself a full blown have to resign or get impeached CRISES on his hands. i am afraid he does not yet realize how serious his problems are. Even if by some miracle for him, Comey goes down it dos not help the president one iota.

Americans Suddenly Sour on the Housing Market

Americans have been ga ga crazy in recent years about the housing market, bidding up prices with gusto as they went. The election helped. By February, the Fannie Mae Home Purchase Sentiment Index (HPSI) had shot up to 88.3, up 5.6 points year-over-year, and the highest ever in the data series going back to 2011. But since then, some dark clouds have appeared, and other dark clouds have been out there for a while – by some measures the darkest in the data series. The index itself still looks benign: In May, it fell 0.5 points to 86.2, down 2.1 points from its February peak. Nick Note: Be warned the biggest real estate wipe-out EVER is baked into the cake. Time to head for the hills…. SELL as in dump all real estate NOW!!

Mueller staffing up Russia probe while Trump lawyer declares victory

President Donald Trump’s lawyer has responded to fired FBI Director James Comey’s tell-all to Congress by taking a victory lap.The evening before Comey’s testimony, Marc Kasowitz was spotted buying a box of cigars, and sources overheard him saying, “We won. Trump’s in the clear. … It’s clear Trump didn’t do anything wrong.” On the other side of Pennsylvania Avenue, special counsel Robert Mueller has been quietly and methodically building the equivalent of a small US attorney’s office — a team of formidable legal minds who’ve worked on everything from Watergate to Enron, unlikely to leave any stone unturned. Nick Note: Muller is gearing for impeachment… while the Trump teal is getting ready for a golf outing

Next Asset Bubble Cracks: It’s so Big even the Fed is Fretting

Commercial real estate’s eight-year boom has reached such breath-taking levels that even the Fed has been pointing it out as one of the reasons for tightening monetary policy. The Fed is worried because of the size of the sector, its leverage, and what it did to the banks during the Financial Crisis. And now commercial real estate prices are heading south once again.

Green Street’s Commercial Property Price Index, which tracks the value of property owned by real-estate investment trusts, fell 0.4% in May to the lowest level since May 2016:

This is not happening because there is some sort of crisis. And this is not a crash, as during the Financial Crisis, when the spigot was suddenly turned off and liquidity disappeared overnight. Instead it’s a slow process that is happening despite super-low long-term interest rates, enormous liquidity in the markets, and super-easy financial conditions powered by yield-chasing risk-blind investors. Nick Note: As you can see by the chart the real estate bubble is bigger then ever. And its about to crash. The hell of it is they all know and their is literally nothing to do. This coming wipe out like the last one can not be avoided. its being driven by the retail wipe out we have been reporting to you

Comey: ‘I was fired because of the Russia investigation’ Comey said — based on the president’s own words

Trump fired him in some way because of the FBI’s ongoing investigation into potential coordination between Russia and the Trump campaign. “It’s my judgment that I was fired because of the Russia investigation,” Comey said. “I was fired in some way to change, or the endeavor was to change, the way the Russia investigation that was being conducted.” Comey said this was “a very big deal,” not only because of the FBI’s investigation. He also said it was “a very big deal” if any Americans were involved in coordinating with the Russians. Nick Note: Talk about Bad Karma. Trump beats the crap out of the Director of the FBI. Let’s face facts, demands, no matter how subtle they are from the most powerful man in the world are very hard to refuse. Especially when he can fire you! And refuse to stop the investigation is what Comey did… And he lost his job. Here is where Karma kicks in. The very investigation Trump wanted to avoid: his Russian friends hacking into the DNC server to help him win the election. Is now a great big AW SHIT! As a direct result of his firing the FBI director, there is now a full blown criminal investigation. Special Prosecutor, subpoenas and all.

Trump’s poll numbers are in a very, very bad place

On March 11, 45% of Americans approved of the job Donald Trump was doing in Gallup’s daily tracking poll. It’s been all downhill since then. In the intervening 86 days, Trump’s job approval has never again reached 45% in Gallup’s data. In fact, the last time Trump was even at 43% was on April 28. He’s spent most of the time between then and now mired in the low 40s and high 30s. And now, Trump finds himself in the midst of his worst extended poll run of his presidency. Starting on May 28 when Gallup put his job approval at 42%, Trump has been sliding downward. The latest Gallup track on June 3 put Trump’s job approval at a dismal 36% — a single percentage point away from the lowest ebb of his time in the White House. (On March 28, Trump’s job approval was at 35%.) The Gallup numbers are no anomaly. Nick Note: Love Trump, hate Trump, the reality is, contrary to Fox News spin, people don’t like what they see. AND, AND Trumpgate has all the earmarks of a full blown resign or get impeached crisis…

ABC NEWS: SESSIONS OFFERED TO RESIGN

Attorney General Jeff Sessions has become so tense that Sessions at one point recently even suggested he could resign. The friction between the two men stems from the attorney general’s abrupt decision in March to recuse himself from anything related to the Russia investigation — a decision the president only learned about minutes before Sessions announced it publicly. Multiple sources say the recusal is one of the top disappointments of his presidency so far and one the president has remained fixated on. Trump’s anger over the recusal has not diminished with time. Two sources close to the president say he has lashed out repeatedly at the attorney general in private meetings, blaming the recusal for the expansion of the Russia investigation, now overseen by Special Counsel and former FBI Director Robert Mueller. But sources say the frustration runs both ways, prompting the resignation offer from Sessions. Attorney General Jeff Sessions suggested he could resign amid rising tension with President Trump. Nick Note: Trump is going ape shit crazy over the fact Sessions recused himself. Trump was counting on an inside guy to put out this raging fire. Now the shit is hitting the fan and Trump is so mad he could spit bullets.

Feds Arrest NSA Contractor in Leak of Top Secret Russia Document

Barely an hour after a news organization published an article about a Top Secret National Security Agency document on Russian hacking, the Justice Department announced charges against a 25-year-old government contractor who a senior federal official says was the leaker of the document. The May 5, 2017 intelligence document published by The Intercept, an online news organization, describes new details about Russian efforts to hack voting systems in the U.S a week prior to the 2016 presidential election. While the document doesn’t say the hacking changed any votes, it “raises the possibility that Russian hacking may have breached at least some elements of the voting system, with disconcertingly uncertain results.” It adds that the government found evidence that Winner “had email contact” with the news outlet, and that Winner was one of just six individuals who had viewed the intelligence reporting since the U.S. government published it internally. Nick Note: This is the tip of the iceberg. This proves the leaks are real. Please notice that for a fact, Russia was hacking into our voting machines besides hacking into the DNC computers… All to ensure a Trump victory. You may ask why was Russia was so cooperative… Answer, the sanctions are killing them.

Yahoo: Trump team tried to drop Russia sanctions

President Donald Trump’s administration moved quickly to try and lift economic sanctions on Russia and other punishments former President Barack Obama had put in place as soon as it took office in January, according to multiple sources who have spoken with Yahoo News. “There was serious consideration by the White House to unilaterally rescind the sanctions,” according to Dan Fried, who retired in February as Coordinator for Sanctions Policy at the State Department. Fried told veteran investigative journalist Michael Isikoff, a former national investigative correspondent for NBC News and Newsweek alumnus, that in the early weeks of the administration he got several “panicky” calls from U.S. officials. They asked: “Please, my God, can’t you stop this?” Lifting the sanctions “would have been a win-win for Moscow,” according to Tom Malinowski who served as assistant secretary of state for democracy until inauguration day. Malinowski told Yahoo News that he heard the administration was working on a “grand bargain” with Russia. Nick Note: There are things you know and things that can be proven. FOR SURE the Trump deal, in payment for breaking into the DNC servers, was Russia demanded that TRUMP remove the sanctions. He tried. Thank GOD honest patriots in the Trump administration blew the whistle. All that remains to see is if Trumps treason can be proven and if he is forced to resign and or be impeached. Either way Trumps agenda is over. The markets and economy will wipe out!

Democrats Weigh Using Debt Ceiling Debate to Thwart GOP Tax Cuts

Congressional Democrats might abandon their calls for raising the nation’s debt limit without any conditions, with House and Senate party leaders now discussing whether to use their leverage to try to prevent Republicans from enacting tax cuts for wealthy Americans. House Minority Leader Nancy Pelosi signaled the shift Friday, telling reporters that “we’re not there to raise the debt ceiling to throw a few crumbs to the middle class” and provide big cuts for the wealthy. It’s unclear how this would work in practice, but Democratic aides in both chambers said they are discussing possible strategies to tie the debt ceiling to blocking tax cuts. Such an approach would be a significant change for Democrats, who have spent the past eight years arguing that debt ceiling increases should be free from conditions, and could further complicate efforts to raise the government’s borrowing authority when the current limit is reached later this year. Nick Note: I want to be clear here. The Trump agenda is dead. He has gotten through a supreme court Judge (by changing the rules) and got us out of the Paris accord that was never implemented and never voted on by congress!. That’s it. Wall street has priced in the impossible… like massive corporate and personal tax cuts AND AND AND a massive infrastructure stimulus bill. Forget these wet dreams. Trump will spend the rest of his term defending and being investigated for his Russian sell out. Its over! And I think the shit will hit the fan when the Democrats who smell blood block EVERYTHING in sight including raising the debt ceiling. What little Republican support he begrudgingly HAD is gone. Russiagate here we come!

Will Trump block Comey testimony? White House does not know yet

White House officials said on Friday they did not know yet whether President Donald Trump would seek to block former FBI Director James Comey from testifying to Congress next week, a move that could spark a political backlash. “I have not spoken to counsel yet. I don’t know how they’re going to respond,” White House spokesman Sean Spicer told reporters. Comey was leading a Federal Bureau of Investigation probe into alleged Russian meddling in last year’s U.S. presidential election and possible collusion by Trump’s campaign when the president fired him last month. Critics have charged that Trump was seeking to hinder the FBI’s investigation by dismissing Comey. The former FBI chief is due to testify on Thursday before the Senate Intelligence Committee as part of its own Russia-related investigation, and his remarks could cause problems for the Republican president. Nick Note: Here is where we cut through the bullshit! If President Trump has nothing to hide and wants the truth out, as he says… THEN he should instruct Former FBI director Comey to testify openly and tell the truth… BUT if he is dirty, as I believe, he will silence the former FBI director by claiming executive privilege on their conversations… it will be very interesting and revealing any way it goes.

Comedian Kathy Griffin says her career is over after gory Trump photo

Comedian Kathy Griffin tearfully apologized in a Friday press conference for posing with a fake bloodied and severed head depicting U.S. President Donald Trump, saying that she felt her career was now over and that Trump “broke” her. Griffin has lost sponsorships and jobs, including her role as co-host of CNN’s New Year’s Eve coverage with journalist Anderson Cooper, since a photograph and video from the shoot appeared on social media on Tuesday. President Trump said the image of Griffin with the gory mask resembling him was “sick” and that it had traumatized his family, especially his youngest son, 11-year-old Barron. Trump’s oldest son, Donald Jr., called for employers to drop the comedian. “I don’t think I will have a career after this. I’m going to be honest, (Trump) broke me,” said Griffin, 56, a two-time Emmy-winning performer known for her deliberately provocative brand of humor. She added that she had received death threats. Nick Note: In no way do I condone the disgusting photo shoot. I would only go so far. But she should understand when you attack powerful people they attack back! I have spent a life time going after corrupt and powerful politicians and bankers. I can tell you they fight back and they fight dirty. Right now I find myself in the unfortunate position of having to blow the whistle on President Trump, who I believe is corrupt and has sold his soul to the Russian devil. Why do I take on this fight? It’s really simple, because his corruption, treason and flip flops will drive the US and world economy into the next great depression… and the little guy will be little more than a debt slave.

Trump is leaving Paris climate agreement

President Trump decided to pull out of the Paris climate agreement on Thursday. “In order to fulfill my solemn duty to protect America and its citizens, the United States will withdraw from the Paris climate accord, but begin negotiations to re-enter either the Paris accord or an entirely new transaction on terms that are fair to the United States, its businesses, its workers, its people, its taxpayers,” Trump said on Thursday. The withdrawal may not actually take effect until 2020. Nick Note: Finally the first and only campaign pledge HE has fulfilled. See, he can do it if he wants to. I guess Russia okayed this one!

Hard times hit New York’s Billionaire’s Row with luxury condo foreclosure

Billionaire’s Row is headed for its first foreclosure. The dubious distinction is going to a stunning apartment on the 56th floor of 157 W. 57th Street — the city’s first “billionaire’s building,” which is home to the Big Apple’s only $100 million condo. “This is the first high-end condo to go into foreclosure,” said Kashy Eyn, of Platinum Properties, who is listing the property with Cash Bernard. There is now a lien on the property for $20.9 million “plus interest and costs,” and a foreclosure auction is slated for June 14, according to Property Shark. “We rarely see luxury condos up for auction, let alone in such an exclusive building as One57, home to the city’s most expensive condo ever sold,” a Property Shark spokesman said. Nick Note: I want you to know there is a global real estate bubble that is about to burst. From Sydney to Miami to New York the bubble is starting to burst. This will be the greatest and biggest real estate bust the world has ever seen. It will devastate the masses. And is part of the coming global recession that I am sure will end up in a global depression.

Trump’s Personal Attorney Now Part of Investigation Into Russian Meddling in Election

President Donald Trump’s personal attorney has become a focus of the expanding congressional investigation into Russian meddling in the 2016 election. Michael Cohen, one of Trump’s longtime and closest confidants, told ABC News that both House and Senate investigators asked him “to provide information and testimony” about any contacts he had with people connected to the Russian government. After Cohen rejected the congressional requests for cooperation, the Senate Select Intelligence Committee voted unanimously on Thursday to grant its chairman, Sen. Richard Burr of North Carolina, and ranking Democrat, Sen. Mark Warner of Virginia, blanket authority to issue subpoenas as they deem necessary. Cohen’s name joins a growing list of top members of Trump’s orbit who are involved in the investigation, ABC reported. Nick Note: They are casting a far and wide net in this criminal investigation. You throw enough shit at the wall, eventually it sticks.

N. Korea fires ‘Scud-type’ ballistic missile: S. Korea

The missile, presumed to be a Scud type, was launched eastward from the vicinity of Wonsan, Gangwon Province, at around 5:39 a.m., according to the Joint Chiefs of Staff (JCS). “The flight distance is around 450 kilometers,” it said. The North’s latest action was immediately reported to President Moon Jae-in, who ordered related government officials to convene a National Security Council meeting, said the JCS. The U.S. Pacific Command also confirmed the launch occurred near Wonsan Airfield, saying the missile was tracked for six minutes until it landed in the East Sea. “The North American Aerospace Defense Command (NORAD) assessed that the missile launch from North Korea did not pose a threat to North America,” the Hawaii-based command said in an emailed statement. “U.S. Pacific Command stands behind our ironclad commitment to the security of our allies in the Republic of Korea and Japan.” Nick Note: Thank you the Clinton’s. It would have been easy to stop this nut job during the Clinton administration. During Hillary Clinton’s watch as head of the department of state, he joined the nuclear family and she did nothing. Now, when not if war comes, it will cost millions of lives… Sad, so sad.

Another Washington Post anonymously sourced hit job dropped on the Trump White House

This one about Jared Kushner asking the Russian ambassador for a “secret channel.” It landed just in time to greet the president upon his return from his first international trip and shortly after Attorney General Jeff Sessions pledged to “put an end to” the rampant leaks coming from within the government. An administration plagued with leaks is now trying to determine whether recent damaging claims may have been fanned from within the West Wing. The latest claim stems from a supposed meeting that President Trump’s son-in-law, Jared Kushner, and Lt. Gen. Michael Flynn had on Dec. 1 or 2 with the Russian ambassador, Sergey Kislyak. According to The Washington Post, U.S. officials who reviewed intercepts between Kislyak and Moscow saw that Kushner requested “a secret [communications] channel with Moscow rather than relying on traditional government systems.” This alleged request by Kushner, the White House aide who conceived of and planned Mr. Trump’s just-concluded, multi-country trip, “adds to a broader pattern of efforts by Trump’s closest advisers to obscure their contacts with Russian counterparts.” LONGEST Nick Note ever : The people leaking in the TRUMP White House (his own people) are the real freedom lovers and heroes. They are risking everything with no chance of reward. The FREE press is doing its job, they are the barking dogs. The president is critical of the process because he knows he is dirty. AND this can bring him down. It is the presses job to report information from sources. Often times not substantiated (that’s the job of the investigators like the now appointed Special Prosecutor) Then as you are seeing, the process moves to the criminal investigation of the allegations. Of course some “leaks” are baseless and of course some are his enemies taking shots at him… SO… A watch dogs job is to bark. Sometimes it’s a rabbit and sometimes it’s home invaders. You don’t stop the dog from barking. And I promise you, it’s not a rabbit in the bushes. As I have been telling you, the president of the United States solicited the break in of the DNC servers by a foreign power. (We played the tape for you so you could see for yourself) And that illegal break in did two things. First, it helped him win the presidency AND, AND, AND second, it compromised his entire administration and subjected them to black mail by a foreign power. And the intercepts of Russian spys having a party because they compromised General Flynn who resigned in humility is proof. I am a life long right wing conservative. I supported Trump (holding my nose) But I did not sign up for this. Trump will resign or be impeached or GOD forbid something worse. Pence will resign because he is dirty. The speaker of the house, RYAN, will be president. And the country will be thrust into an all out depression and possibly a civil war. GOD help us all. You do your part and get rich. That is where you can do the most good.

Russian ambassador told Moscow that Kushner wanted a secret communications channel with Kremlin

Jared Kushner and Russia’s ambassador to Washington discussed the possibility of setting up a secret and secure communications channel between Trump’s transition team and the Kremlin, using Russian diplomatic facilities in an apparent move to shield their pre-inauguration discussions from monitoring. Ambassador Sergey Kislyak reported to his superiors in Moscow that Kushner, son-in-law and confidant to then-President-elect Trump, made the proposal during a meeting at Trump Tower, according to intercepts of Russian communications that were reviewed by U.S. officials. Kislyak said Kushner suggested using Russian diplomatic facilities in the United States for the communications. The meeting also was attended by Michael Flynn, Trump’s (former) national security adviser. The White House disclosed the meeting only in March, playing down its significance. But people familiar with the matter say the FBI now considers the encounter, as well as another meeting Kushner had with a Russian banker, to be of investigative interest. Kislyak reportedly was taken aback by the suggestion of allowing an American to use Russian communications gear at its embassy or consulate. Nick Note: This is called back channel communications. It’s done. BUT doing it do facilitate payoff (loans) and a conduit to receive instructions from your owner is a crime. Remember, the Russians broke into the DNC computer at the request of Donald Trump. And such information won him the election. AND the fact they made a deal means the Trump administration has been compromised (blackmailed) by a hostile foreign power.

President Donald Trump’s son-in-law and senior adviser, Jared Kushner, is under FBI scrutiny as part of the Russia investigation

Reports say investigators believe he has relevant information, but he is not necessarily suspected of a crime. The FBI is looking into potential Russian meddling in the 2016 election and links with Mr Trump’s campaign. The president denies any collusion. Mr Kushner’s lawyer said his client would co-operate with any inquiry. President Trump has described the Russia investigations as “the single greatest witch hunt of a politician in American history”. US intelligence agencies believe Moscow tried to tip the election in favour of the Republican, who beat his Democratic rival Hillary Clinton. Separately, the Washington Post reported that the investigators were focusing on meetings he held last year with the Russian ambassador to the US, Sergei Kislyak, and a banker from Moscow, Sergei Gorkov. Mr Gorkov is the head of Vnesheconom bank, which has been subject to sanctions imposed by the Obama administration in response to Russia’s annexation of Crimea and its support for separatists in eastern Ukraine. The bank is under the control of Russian Prime Minister Dmitri Medvedev and other members of the government, and has been used to fund major projects such as the 2014 Winter Olympics in the southern Russian resort of Sochi. Nick Note: It is obvious this prep school, pompous prick, slum lord is dirty. I hope he gags on his silver spoon. He is dirty, a criminal and a traitor to his country. He was part of the negotiations with the Russians on the break in of the DNC computer sever. Such revelations got Trump elected. AND he also sought and in fact has borrowed money from the Russians. He will be forced out of the white house and soon.

Moody’s downgrades China, warns of fading financial strength as debt mounts

Moody’s Investors Service downgraded China’s credit ratings on Wednesday for the first time in nearly 30 years, saying it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise. The Downgrade comes as the Chinese government grapples with the challenges of rising financial risks stemming from years of credit-fueled stimulus. “The downgrade reflects Moody’s expectation that China’s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows,” the ratings agency said in a statement, changing its outlook for China to stable from negative. “Moody’s views that China’s non-financial debt will rise rapidly and the government would continue to maintain growth via stimulus measures are exaggerating difficulties facing the Chinese economy, and underestimating the Chinese government’s ability to deepen supply-side structural reform and appropriately expand aggregate demand,” the ministry said in a statement. At the same time, Beijing’s need to deliver on official growth targets is likely to make the economy increasingly reliant on stimulus, Moody’s said. Nick Note: China is dead broke, deep in debt and will wipe out in the coming depression. This said depression will become a global depression in large part due to China debt wiping out.