Wednesday, October 8, 2014

FRANCE AND THE POLITICAL WILL TO DELIVER

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

If France is the high water symbol of socialist egalitarianism, forget the Queen. God save the rest of us. France is an ugly, stumbling, bumbling mess as is much of Europe. And the U.S ain't far behind.

People who constantly lament and blame political gridlock in America for many of its ills completely miss the bouncing ball. Without gridlock America by now would be sharing a front row seat with France in its economic, socialistic theater of the absurd.

In a recent New York Times interview with French President Francois Hollande's new cabinet member to oversee the the French economy, 36-year-old Emmanuel Macron, we get a look at the task ahead and some idealistic enthusiasm characteristic of youth.

Here are some excerpts from that October 3, 2014 Paris interview

A decade ago, Mr. Macron might have seemed out of place in these halls of power, which have tended to be run by elder statesmen focused on bolstering the vaunted French welfare state. But as one of the youngest people ever to hold a cabinet position, he has quickly become the face of France’s New Socialism, a pro-business technocrat bent on modernizing the country’s social model.

Despite his youth, Mr. Macron has been a major force behind a recent shift by the politically struggling Mr. Hollande toward a more centrist economic policy for France. The economy is essentially stagnant and mired in what Mr. Macron describes as “mass unemployment” — around 10 percent, just shy of the 11.5 percent eurozone average.

As part of the Hollande government’s newly stated resolve, last week it issued a “no austerity” declaration of budgetary independence from the German-led orthodoxy that has been widely blamed for making economic growth hard to achieve in much of the eurozone. Even as it announced 50 billion euros ($63 billion) in spending cuts over the next three years, the government said it would not meet the deficit targets overseen by the European Union until at least 2017

Essentially daring Brussels, the Hollande government indicated it intends to start charting its own economic course, in ways meant to retain many of the country’s social programs, while sharply increasing its global competitiveness.

On Monday, news reports suggested that the European Commission might be preparing to censure France when it reviews its new budget. But Simon O’Connor, a commission spokesman, said it was premature to say how Brussels might respond, until after France formally submits the budget, which is expected on Oct. 15.

In many ways it is Mr. Macron’s job to help sell the Hollande administration’s new approach — not only to corporate France but to a French public worried about its future.

“France is a strong, wealthy country,” he said, citing a strong research and development base, universal education, large foreign investment and world-class companies. “But we are always obsessed by our own weaknesses,” he continued. “It’s sort of a French state of mind." 

As the French economy continued to flag, Mr. Hollande made Mr. Macron his main economic adviser at the Élysée Palace in 2012. This time, he pushed the president hard to break with the “old socialism,” helping to draft a so-called Responsibility Pact that increased flexibility in France’s rigid labor market and promised companies €40 billion in tax breaks in exchange for pledges to do more hiring. 

Now, what is important, Mr. Macron said, as a late train from the nearby Gare de Lyon rumbled beneath his window, is that France continue to streamline and modernize the welfare state.

“For me being a Socialist today is about defending the unemployed, but also defending businessmen who want to create a company, and those who need jobs,” he said. “We have to shift the social model from a lot of formal protections toward loosening bottlenecks in the economy.”

That will be no easy task. Numerous French presidents have rolled out reform plans, only to fold after the French took to the streets. Last week, thousands marched against Mr. Hollande’s plans to reduce social spending and open the economy to greater competition.

What if Mr. Hollande, already the most unpopular president in modern French history, now decides to retreat?

Mulling the question, Mr. Macron lifted a glass of Burgundy wine, a pleasure that he permitted himself given the late hour, then grew suddenly serious. “The deal I had with the president and the prime minister was to deliver. If they decide not to deliver, I will move.”


BROKE AND DESPERATE

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

The International Monetary Fund speaks and Wall Street in its confusion listens.

Here's a quote from today's front page Wall Street Journal.

Stocks tumbled on escalating concerns about global growth prospects, especially in Europe, as new data showed deepening stresses in the continent’s economy and remarks from a leading policy maker highlighted the lack of consensus in dealing with the slowdown.


The Dow Jones Industrial Average slid nearly 273 points, or 1.6%, its worst daily decline since July and fourth-biggest point drop of the year. The slump in U.S. share prices followed big losses in German, French and U.K. stock markets.

Long known for its harsh austerity leanings, the IMF for years made loans to strapped countries many believe with conditions as strict as those repayment reparation liens on Germany following WWI many again believe led in part to WWII.

According to today's Financial Times, the IMF claims "there is an almost 40 per cent chance of a eurozone recession in  the next six months, and downgraded other countries outside North America."

That the IMF is now calling for monetary stimulus should strike you as strange and it just might be a clear signal the economic bottom is in.  This bureaucratic outfit's had to change its forecasts more often than someone with a bad case of IBS changes underwear.

Much of this doom and gloom stuff over shadows another drag on things. Bureaucrat-laden places like Brussels and Washington have declared open season on alleged corporate and state wrong doers, "EU's Amazon probe steps up pressure over tax deals," reads another Times headline.

There are two ways to treat over burdensome taxes, tax avoidance and evasion. Until recently only evasion was illegal.

 The political climate in Brussels--and across Europeans capitals--has hardened towards US  companies in recent months, especially in the technology sector.

The decision to probe such tax rulings is not just putting the spotlight on individual companies. By targeting governments alleged to have facilitated corporate tax avoidance, iths opened up another front in the global battle against tax avoidance.

To even the most insensitive nose this has more the smell of money to it than illegality. Toss in the not so small payback motive for how a greedy band of Washington regulators treated certain European banks. And going after U.S. technology is no accident, either. 


Basic translation: Governments are desperate and broke.











 

OVERNIGHT


Investors will be looking at the debate minutes between the hawks and the doves in the latest Fed report to be released today in an attempt to get a handle on when interest rates will head up.

Meanwhile, overnight stocks in Asia took a dive with Japan's Topix (.TOPX) shedding 1.1 percent and the Nikkei (.N225) down 1.0 percent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 percent, while Australia's main index (.AXJO) lost 0.9 percent.

China's markets  after a week-long break from moved up slightly with Shanghai (.SSEC) up 0.5 percent. But trouble, though many believe it is subsiding, in Hong Kong (.HSI), sent the market there down 0.7 percent. Meanwhile, oil absorbed another hit with Brent losing $1.18 to $90.93 a barrel and West Texas Intermediate down $1.07 to $87.78 as deflationary concerns continue to rule the day.

The International Monetary Fund's report released earlier apparently didn't do much to bolster investor confidence about a quick end to the global slowdown either.


Tuesday, October 7, 2014

PROPPING UP A MARKET

http://si.wsj.net/public/resources/images/P1-BR328_BUYBAC_G_20140915184546.jpg

Buy back binge might be an understatement. 

Putting a huge prop underneath the market might be closer to the truth. Here's a blurb from http://www.crossingwallstreet.com

More stats on the amazing trend of share buybacks:
Five years of profit growth have left S&P 500 constituents with $3.59 trillion in cash and marketable securities and they’ve raised almost $1.28 trillion in 2014 through bond sales, headed for a record.
(…)
S&P 500 companies will spend $565 billion on repurchases this year and raise dividends by 12 percent to $349 billion, based on estimates by Howard Silverblatt, an index analyst at S&P. Profits would reach $964 billion should the 8 percent growth forecast by analysts tracked by Bloomberg come true.
Profits climbed to about $230 billion over the last three months, based on analyst forecasts. That compares with total buybacks and dividends of about $235 billion, assuming repurchases estimated by Silverblatt are evenly divided between the third and fourth quarters. Cash returned to shareholders exceeded profits in the first quarter for the first time since 2009, data compiled by Bloomberg and S&P show.
(…)
The reluctance to raise capital investment has left companies with the oldest plants and equipment in almost 60 years. The average age of fixed assets reached 22 years in 2013, the highest level since 1956, according to annual data compiled by the Commerce Department.
 Here's some random buyback quotes from various sources and times of this year. The two charts are from the 9/22/14 WSJ article,"Companies' Stock Buybacks Help Buoy the Market."

In total, US companies have announced USD309bn worth of share repurchases year-to-date, up from USD259bn for the same period a year ago, according to Thomson Reuters data.


Cisco: Back in February, Cisco announced an $8 billion bond issue “to help finance stock buybacks after the shares lost almost 6 percent over six months.”

Corporations bought back $338.3 billion of stock in the first half of the year, the most for any six-month period since 2007, according to research firm Birinyi Associates. Through August, 740 firms have authorized repurchase programs, the most since 2008.

http://si.wsj.net/public/resources/images/P1-BR325A_BUYBA_D_20140915184834.jpg


 The lesson here should be clear. Corporations have their own way of printing money


CHANGE OF MIND

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

The move comes conveniently at a time when tensions between the EU and top oil supplier Russia are running high.

 According to a story on Mining.com, The EU has changed its mind about labeling Canadian oil sands as "dirty." 

The change would open up European markets to energy from Canada. The above quote sort of tells the tale. Before the Ukraine situation erupted, the European Commission had a different take:
 The commission agreed in 2011 that oil sands fuel should receive a carbon rating a fifth higher than for standard oil, but some member states balked at the move.  

In short what the change means is it "drops a mandatory requirement for oil sands oil to be labelled as unclean and highly polluting."

Some politicians and environmentalists are unhappy. But it shows what a threat of an energy crunch will do. 
http://www.mining.com/crude-from-oil-sands-not-dirty-european-union-30944/

DECISION MAKING

https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcSGb_VHQn4cdI7xWaLrgWxmpePV45ewmkgBsxd9UDPpnurW-3Ny

Anyone who thinks real inflation is anywhere near being below two percent is still suffering from a bad case of birth canal trauma.

Those fontenelles, or soft spots in the fetal skull, are suppose to remain flexible to allow undamaged passage through the birth canal during delivery. It's obvious in some cases that never happens.

And that's probably another good reason to mandate C-sections for any mother suspected of wanting her offspring to grow up and become a bureaucrat or politician.

Most people recognize that the Consumer Price Index is cooked. Over the years it's been changed so often to keep out the disturbing stuff it should be called the Chameleon Price Index.

Meanwhile, back at the big economic Eurozone ranch, it looks as if ECB President Mario "Whatever It Takes" Draghi suffered another shot across his leadership bow. According to the Financial Times, Eurozone inflation is getting lower than a fat duck's belly.

A closely watched gauge of inflation rates expected by financial markets has fallen to the lowest on record, dealing another blow to Mario Draghi, European Central Bank President.

The rate their talking about is that expected over five years starting in five years' time fell, per the Times, quoting Barclays data based on swap rates, to 1.88 percent. The euro swaps market came about as recently as 10 years ago and the above rate is below the previous low close in 2010.

So the data, to begin with, is fairly short. But we'll let that slip for now. And these people, mostly university-trained economists, can't predict next week let alone something as ridiculous as "five years starting in five years time." At the very least this is good Jimmy Kimmel Live material.

Draghi may have brought this problem on himself. Earlier this year at the annual Jackson Hole, Wyoming, economic bigwig confab, he mentioned the "five year-five year" inflation gauge. The leech-infested MSM glommed onto the term and now off we go.

There are several caveats here, but first another quote from the article. 

By keeping inflation expectations in line with their target central bankers aim to affect pricing behaviour and keep actual inflation rates under control.

Now read that sentence three times and then ask yourself if you smell anything that starts with an "m" and ends with an "n" as in manipulation?

Monetary policy is the purest of pure manipulation. So here are two questions we'll leave you with.

1. Why should self-respecting investors believe anything that MSM parrots?

2. Why would any self-respecting investor believe that gold and energy markets right now are not being manipulated?

You'll have to answer those questions for yourself and come la cara to la cara with something most humans loathe, making decisions.
t. man hatter





AROUND THE WEB

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRUZ75ai_-sXdWJ9DIqexyPpVHELJCG3SvyAsAjm1M0VXQgzKQZziUYVp4bPs6p8QmXxCurZZIUeR_Noq6E42MpBgbCN4Sek0dJSit1OWKs_T8TZZZ7TH1aIZ_NVnW7-5ZZLuuevKjYxQ/s1600/image.jpg

1. (Reuters) - As oil production swells, demand falters and prices slide, the global oil market appears on the verge of a pivotal shift from an era of scarcity to one of abundance.

Oil prices have fallen as much as 20 percent since June, despite a host of rising supply risks, leading more investors and traders to consider whether 2015 is the year in which the U.S. shale oil boom finally tips the world into surplus.http://www.reuters.com/article/2014/10/07/us-oil-markets-inflection-analysis-idUSKCN0HW09L20141007

2. Waning tension in Ukraine and bargain prices are helping make Russian stocks a favorite among emerging-market investors.

Asset managers added $154 million to U.S.-based exchange-traded funds focused on Russian equities last week, the biggest inflow among developing-nation ETFs, even as the benchmark index slumped to a two-month low, data compiled by Bloomberg show. Money is coming into Russia at the same time as traders pulled $1.2 billion from ETFs that invest across emerging markets in the five days ended Oct. 3.
http://www.bloomberg.com/news/2014-10-07/etf-bulls-fuel-biggest-inflow-in-emerging-markets.html

3. Ebola, Marburg, Enterovirus and Chikungunya - these diseases were not even on the radar of most people coming into 2014, but now each one of them is making headline news.  So why is this happening?  

Why are so many deadly diseases breaking out all over the world right now?  Is there some kind of a connection, or is the fact that so many horrible diseases are arising all at once just a giant coincidence?  And this could be just the beginning.  For example, there are now more than a million cases of Chikungunya in Central and South America, and authorities are projecting that there will be millions more in 2015.  The number of Ebola cases continues to grow at an exponential rate, and now an even deadlier virus (Marburg) has broken out in Uganda.  We have gone decades without experiencing a major worldwide pandemic, and many people believed that it could never happen in our day and time.  But now we could potentially see several absolutely devastating diseases all racing across the planet at the same time.
http://theeconomiccollapseblog.com/archives/there-will-be-pestilences-why-are-so-many-deadly-diseases-breaking-out-all-over-the-globe-right-now 

4. The US stock market had rocky periods during the third quarter of 2014. There were concerns about rising geopolitical risk that impacted market sentiment. Those concerns triggered some abrupt, albeit minor, corrections. Volatility of the major averages within the quarter was restrained to single-digit declines. These masked some of the market shifts. On September 9, Bloomberg reported as follows:

Beneath the U.S. stock market's record-setting gains, trouble is stirring. About 47 percent of stocks in the Nasdaq Composite (CCMP) Index are down at least 20 percent from their peak in the last 12 months while more than 40 percent have fallen that much in the Russell 2000 Index and the Bloomberg IPO Index. That contrasts with the Standard & Poor's 500 Index (SPX), which has closed at new highs 33 times in 2014 and where less than 6 percent of companies are in bear markets, data compiled by Bloomberg show.
The key elements of geopolitical risk are the evolution of ISIL and its activities in Syria, Iraq, and the broader region known as the Levant. In addition, there is continuing turmoil in Nigeria, a primary oil source. A spreading Ebola epidemic adds to risk. There are also of course problems involving Russia and Ukraine and the responses of the US and European Union to that crisis. In addition, there are tensions in the South China Sea that do not always appear on the news media’s radar screen in the US. Developments there are gradually worsening. 
http://online.barrons.com/news/articles

5.  Hewlett-Packard confirmed Monday that the company will split into two separate businesses. The breakup that will lead to massive layoffs.


6. Here's a tale-tell chart from the site below with story about the wealth of Congress. And they just don't get it.
  http://cdn.thefiscaltimes.com/cdn/farfuture/1-N-vuvtJ54rnwrkMhh_NnGprWNPUqf1YFXDdrZH3sg/mtime:1412559226/sites/default/files/media/10062014_Congress_Net_Worth.jpg
It has long been a given that Congress is a playground for the wealthy, with many members like Rep. Darrell Issa (R-CA), Rep. Michael McCaul (R-TX) and Sen. Jay Rockefeller (D-WVA) millionaires many times over.
The House -- the so-called “people’s chamber,” created by the Founders to be closer than the Senate  to average Americans – is much wealthier than the rest of the country and far wealthier than past Congresses. An analysis by the Center for Responsive Politics shows freshmen House members in the 112th Congress boasted a median net worth of $807,013, compared with a median income of just $44,900 for the public at large last year. In fairness, that number includes homes and cars, and the public at large includes 15 year olds and older.
- See more at: http://www.thefiscaltimes.com/2014/10/06/Why-Americans-Think-Congress-Just-Doesn-t-Get-It#sthash.E0hxj8GO.dpuf
t’s not just the drought in parts of the U.S. and in other countries that’s driving food prices. A number of diseases and rare bacteria are also affecting how much you ultimately pay for your groceries.
Coffee plantations, for example, are experiencing a double whammy: They’re being hit by a fungus as well as by a beetle that’s attacking the beans. Even Ebola is having a damaging effect on cocoa imports from Africa by holding up shipments.
SLIDESHOW: 9 Reasons You’re Paying More for Groceries
Food prices have been on the rise for most of the year and it’s unlikely they’ll drop anytime soon.
The Agriculture Department expects meat prices to rise 6.5 percent in 2014, up from a 5.5 percent forecast earlier this year and well ahead of the 20-year average increase of 2.9 percent.
The trend is similar when it comes to milk and other dairy products, as well as vegetables, fruits and nuts.
On the positive side, corn and wheat crops have been good this year as the Department of Agriculture reported larger-than-expected stockpiles of the grain, prompting prices to fall.
One other piece of good news for consumers—with gas prices dropping below $2 in some areas, a trip to the grocery store costs a lot less.
- See more at: http://www.thefiscaltimes.com/2014/10/06/9-Reasons-You-re-Paying-More-Groceries#sthash.r7vAs2lx.dpuf
Food prices have been on the rise for most of the year and it’s unlikely they’ll drop anytime soon.
The Agriculture Department expects meat prices to rise 6.5 percent in 2014, up from a 5.5 percent forecast earlier this year and well ahead of the 20-year average increase of 2.9 percent.
The trend is similar when it comes to milk and other dairy products, as well as vegetables, fruits and nuts.
On the positive side, corn and wheat crops have been good this year as the Department of Agriculture reported larger-than-expected stockpiles of the grain, prompting prices to fall.
One other piece of good news for consumers—with gas prices dropping below $2 in some areas, a trip to the grocery store costs a lot less.
- See more at: http://www.thefiscaltimes.com/2014/10/06/9-Reasons-You-re-Paying-More-Groceries#sthash.r7vAs2lx.dpuf
Food prices have been on the rise for most of the year and it’s unlikely they’ll drop anytime soon.
The Agriculture Department expects meat prices to rise 6.5 percent in 2014, up from a 5.5 percent forecast earlier this year and well ahead of the 20-year average increase of 2.9 percent.
The trend is similar when it comes to milk and other dairy products, as well as vegetables, fruits and nuts.
On the positive side, corn and wheat crops have been good this year as the Department of Agriculture reported larger-than-expected stockpiles of the grain, prompting prices to fall.
One other piece of good news for consumers—with gas prices dropping below $2 in some areas, a trip to the grocery store costs a lot less.
- See more at: http://www.thefiscaltimes.com/2014/10/06/9-Reasons-You-re-Paying-More-Groceries#sthash.r7vAs2lx.dpuf
Food prices have been on the rise for most of the year and it’s unlikely they’ll drop anytime soon.
The Agriculture Department expects meat prices to rise 6.5 percent in 2014, up from a 5.5 percent forecast earlier this year and well ahead of the 20-year average increase of 2.9 percent.
The trend is similar when it comes to milk and other dairy products, as well as vegetables, fruits and nuts.
On the positive side, corn and wheat crops have been good this year as the Department of Agriculture reported larger-than-expected stockpiles of the grain, prompting prices to fall.
One other piece of good news for consumers—with gas prices dropping below $2 in some areas, a trip to the grocery store costs a lot less.
- See more at: http://www.thefiscaltimes.com/2014/10/06/9-Reasons-You-re-Paying-More-Groceries#sthash.r7vAs2lx.dpuf

http://www.thefiscaltimes.com/2014/10/06/Why-Americans-Think-Congress-Just-Doesn-t-Get-It





Monday, October 6, 2014

AMERICAN BUSINESS LEADERS

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcRS-hsODiSelkEvFzBkTSe1vsGi3XE1d5Cn2JBo0v5Y-eztMdq74g

The question is what do American business leaders know about the U.S. economy and when did they know it?

According to a story on Yahoo Finance earlier today, In a new study out from Deloitte Financial Advisory Services, 87% of executives expect the U.S. economy to grow next year. Nearly one-half of all executives surveyed feel the economy will experience “slow growth” in 2015.

The numbers are not as good, however, as one might think. Concerns about growth and Fed policy persist.

The U.S. economy grew at the fastest rate in eight years in the second quarter of 2014 and growth numbers for the third quarter will be out in a few weeks. But the big question for investors and business leaders alike remains: when will the Federal Reserve begin raising interest rates?


Friday's employment report from the Labor Department may make that answer a little more clear. A surprising 248,000 jobs were created in the month September following a 180,000 increase in August. The unemployment rate is now at a six-year low of 5.9 percent.
Many economists think that these numbers support the assumption the Fed will raise rates in June. According to the Deloitte study, 21% of executives think the Federal Reserve will tighten monetary policy too soon but 37% believe the central bank will tighten it too late. Williams says those who think the Fed won’t act soon enough are, "saying they are concerned about inflation and interest rates have been so low for so long. And perhaps there are asset bubbles associated with that as well.”
Business leaders feel the biggest threat to the economy right now is the Middle East with 35% saying that was their top concern. China was the second biggest concern with 22% feeling it was the top threat. "People are concerned fundamentally about what can mess things up. And they don’t see very much domestically that can mess things up," says Williams. "I think most people’s concerns about the big mess up is something that is going to happen outside United States."
t. man hatter





GOLD'S CURRENT LACK OF LUSTER



Gold has been so beaten down by the forces of fiat currencies if it were a virus MSM would have a fancy name for it and the CDC would be huffing and puffing about isolation and quarantining everyone.

Here's a couple of interesting charts on the subject of gold and it's value.

http://www.zerohedge.com/news/2014-10-06/one-chart-shows-exactly-how-undervalued-gold-right-now