Hallelujah!

This story ran today on Bloomberg. Anyone surprised?  Sure, if Brexit passes, they'll be some volatility. Life is full of volatility. That's why we'll be buyers--opportunity to be apart of something much better. The word deceit is conjured by one Brexit-stay wag. Question: Who would know more about deceits than the already, long entrenched?

He goes on to say that he is more "worried now, much more worried than I was was in 2008." You'd be worried too if you were about to lose lucrative control of peoples' lives that you and your kind have been doing all in your power to decimate for years.

The campaigns for and against keeping the U.K. in the European Union laid out opposing visions of life outside the bloc as dueling ahead of next week’s referendum enters its final stretch.
Brexit Watch: The pound, the polls, and the probability of Brexit, all in one place
Chancellor of the Exchequer George Osborne painted an unremittingly bleak picture of the country’s finances after a vote to leave, detailing an emergency slate of spending cuts and tax hikes he said would be required. Appearing at a rail depot east of London on Wednesday alongside his Labour Party predecessor, Alistair Darling, Osborne warned that a 30-billion-pound ($43 billion) “black hole” would open in public finances due to reduced trade and investment.
Claims of benefits from Brexit are “fantasy economics. Worse than that, it’s a deceit,” said Darling, who served as chancellor during the financial crisis. “I’m more worried now, much more worried than I was in 2008,” he said.
In a sign of discord within the ruling Conservative party, 57 of it 330 lawmakers declared their opposition to Osborne’s proposed emergency budget, writing in a letter that his position would be “untenable” if he tried to implement it. Labour Party Leader Jeremy Corbyn said he wouldn’t back a fresh round of fiscal austerity either.
Hours earlier, the increasingly confident “Leave” campaign unveiled its own legislative agenda, pledging laws to restrict free movement of people and reduce the influence of EU judges with the goal of an ultimate departure by 2019. With a “framework for taking back control” comprising six bills, its proposals resemble an alternative government platform, again highlighting the divisions among Prime Minister David Cameron’s Conservatives. Most Tories -- and bookmakers -- expect him to step down within a year if “Leave” is victorious.

bloomberg.com/news/articles/2016-06-15/u-k-campaigns-lay-out-post-brexit-visions-in-push-for-dominance.

In the short run, uncertainty is certain. In the long run the UK and its currency will be stronger and better. In fact, it will become even more of a safe haven, like the old Swiss gold-backed franc, against volatility and EU bureaucratic nonsense.

So don't let the scaremongers with deep vested interests in keeping you and your future in their greedy, grimy little clutches frighten you. Think of MLK's famous words: "Free at last, free at last."

Can someone now please shout out a Hallelujah!

Brexit: It's Your Vote And Your Life

If UK voters are looking of another reason to for leaving the EU, here it is. We have no connection with Google or any other Internet news provider. We challenge anyone to prove otherwise.

In fact, Google recently censored us for 16 days for writing material like what we've been writing here since we first began. We defy them, Google, to deny what we just wrote. The censor came without reason. This is about the liberty of the Internet., keeping it out of the hands of indifferent, distant bureaucrats, and at large you're own personal liberty.

 We’ve written plenty of times about ridiculous European plans to create a so-called “snippet tax” which is more officially referred to as “ancillary rights” (and is really just about creating a tax on Google).

The basic concept is that some old school newspapers are so lazy and have so failed to adapt to the internet — and so want to blame Google for their own failures — that they want to tax any aggregator (e.g., Google) that links to their works with a snippet, that doesn’t pay for the privilege of sending those publishers traffic. As you may remember, Germany has been pushing for such a thing for many, many years, and Austria has been exploring it as well. But perhaps the most attention grabbing move was the one in Spain, which not only included a snippet tax, but made it mandatory. That is, even if you wanted Google News to link to you for free, you couldn’t get that. In response, Google took the nuclear option and shut down Google News in Spain. A study showed that this law has actually done much to harm Spanish publishers, but the EU pushes on, ridiculously.

As discussed a year ago, some in the EU Commission are all for creating an EU-wide snippet tax, and as ridiculous and counterproductive as that is, the Commission is about to make a decision on it, and the public consultation on the issue is about to close (it ends tomorrow). Thankfully, many, many different groups have set up nice and easy systems to understand and respond to the consultation — which you should do. Here are just a few options:

• The EU Commission’s own consultation platform (this one is messy, buggy, and annoying, but it’s the official one).
• The site FixCopyright.eu has a well done “answering guide” that helps you through the consultation and explains the details behind many of the questions in the consultation.
• SaveTheLink.org from OpenMedia has a simple signup form that just adds your name to a letter.
• The group Allied for Startups has another good sign on letter Stop the link tax

zerohedge.com/news/2016-06-15/eu-wants-impose-tax-sharing-links-internet

Overnight

We always enjoy it when we read an opening paragraph like this one from Reuters:

Japanese stocks rose in choppy trade on Wednesday, snapping a four-day losing streak thanks to short-covering, while coming central bank meetings and worries that Britain might vote to leave the European Union kept investors on edge.

Short-covering is the polar stock market opposite of profit taking in the media as the the market was down today owing to profit taking. What that really means is they don't have a clue why the market did what it did, since there is short-covering and profiting-taking every day the market is open. So more of the same is most likely more accurate in the face of little news.

With that said, the Nikkei edge up some, 0.38%, to 15,919 after opening down, the Shanghai Composite was up 1.40%, the Hang Send Index 0.27% while the Korean and Australian markets moved down with the Kospi off -0.16% and the ASA 200 dropped -1.08%

China apparently paid a price for its earlier attempts this year to control capital flight out of the country as, the WSJ reported: MSCI said it would admit Pakistani stocks to its Emerging Markets Index for the first time while excluding Chinese A shares, citing the inability of investors to get their money in and out of the country freely as a key reason. But again much seems to be riding on Wednesday's Fed meeting and the same for the upcoming meetings at the BOJ as investors remain cautious over these and the scheduled Brexit vote in the UK.

Not New

 reuters.com/article/us-funds-doubleline-gundlach-


This isn't new. What's new is more and more coming right out and saying it. MSM lackeys and sycophants aside, this is a healthy sign. Social, financial or whatever, facts are stubborn things and people are finally getting less and less cowered by PC irrespective.

You can't criticize unless you're civil and have a better plan. And other such nonsense. The market is way over-valued, the Fed has created numerous bubbles and people are finally getting it: the only emperor is the emperor of ice cream. That clearly omits bureacrats, politicians, elists, economists, climate alarmists and central bankers.

We will be buyers on any significant downturn owing to Brexit. Not that the EU will survive because it shouldn't. There are only two boondoggles in this century that will prove to be greater farces than the EU. One of them is gluten, the other climate change. People are slowly catch
ing on to the gluten farce and the EU charade. Climate change won't be far behind.

You know the time is growing near when their backers and fellow zealots seek to make it a criminal and civil offense to question their orthodoxy or speak out against them. They're worried. Speak out. These nearsighted, arrogant central bankers hold your financial future in their scope of incompetence. If you screw up your future that's one thing. Own it and move on. If they do it's another, one you should be ashamed of allowing to happen.

If you have a voice, use it. A vote, exercise it. The only thing these people understand is pressure. And lots of it. If that sounds a bit bellicose, so be it. They'll be a hell of a lot less apologetic after their incompetence finishes screwing up the next generation of your life.

Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks.

The man known on Wall Street as the 'Bond King' is one of the first heavyweight investors to publicly raise red flags about the credibility of major central banks, including the U.S. Federal Reserve, as countries struggle to manage economic growth.
Last year, Gundlach correctly predicted that oil prices would plunge, junk bonds would live up to their name and China's slowing economy would pressure emerging markets. In 2014, he forecast U.S. Treasury yields would fall, not rise as many others had expected.

"Central banks are losing control and they don't know what to do ... just like the Republican establishment and Donald Trump," Gundlach told Reuters in a telephone interview, referring to the Republic Party's unpredictable presumptive nominee for U.S. President.
Safe-haven German Bund yields fell below zero on Tuesday for the first time and global equity markets slid for a fourth day in a row on intensifying worries about a potential British exit from the European Union next week.

Gundlach's remarks come the day before U.S. Federal Reserve officials are widely expected to leave short-term interest rates unchanged following a dismal May jobs report.
"The Fed is confused and their confusion spills into investor psychology," said Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine.
"The Fed changes its tone so frequently, it seems every other week the message is different. They’ve turned into the 'Zombie Fed.' They say the meeting this week is 'live,' but investors all know it isn't at all."

Gundlach said it is a "dangerous price appreciation game" to purchase German Bunds at current levels and that gold and gold miners are still an attractive place to put money to work.
On a webcast for investors later on Tuesday he said negative interest rates implemented by some major central banks, notably in Japan, were backfiring. "Negative interest rates don't do what they're theoretically supposed to do," he said, noting the appreciation in the Japanese yen.
He added that negative interest rates "aren't leading to higher economic growth." He said world gross domestic product could be averaging around just 1 percent against the backdrop of aggressive global monetary policies.

Gundlach also noted the dramatic "drawdowns" from the highs in several stock markets. Germany is down 22 percent, Japan is down 23 percent, China is down 45 percent, the United Kingdom market is down 15 percent and France is down 20 percent.
"Negative rates do not prop up stock markets," Gundl
ach said on the webcast

Gundlach's prescient investment calls have accelerated DoubleLine's rise and earned him a reputation as a savvy investor. DoubleLine's flagship DoubleLine Total Return Bond Fund (DBLTX.O), which invests mainly in mortgage-backed securities, has assets of $60.3 billion, making it one of the world's largest bond mutual funds.

Be Careful What

Central bankers rolled out zero and below zero interest rates like it was a cure all, the fix for all fixes to solve the global slowdown. Such so far has been anything but the case. Be careful what you wish for. Those uninteaded consequences can wreak more than you bargained for.

Yields on the 10-year government debt of Germany dipped below zero on Tuesday for the first time on record, in a dramatic sign of the outsize effect of central-bank policy and investors’ search for safe havens.

That search for safety accelerated on Tuesday as concerns that Britain could vote to leave the European Union next week continued to rattle global markets, pushing yields down on a range of government debt from Japan to the U.K.

The yield on the bund fell to minus 0.03% when European markets opened, from around 0.02% at Monday’s close, according to data from Tradeweb. With political risks around the world mounting, investors see room for yields to fall even further.

Government-bond yields have been falling for the past year across the developed world as investors look for safety and central banks push interest rates close to zero and into negative territory. The European Central Bank has contributed to the fall in bund yields through its massive bond-buying program, aimed at lowering financing costs across the eurozone.

More recently, the U.K. referendum has added to the flight to safety as opinion polls increasingly point to a so-called Brexit on June 23, spurring worries about a stretch of uncertainty that could hurt the global economy.

“The fact that Brexit is now perceived as a possibility is a total game-changer, and it’s very difficult to estimate the macroeconomic impact,” said Franck Dixmier, global head of fixed income at Allianz Global Investors.

hwsj.com/articles/german-10-year-government-bond-yields-dip-below-zero-for-first-time

Do Yourself A Favor

Here are some things you won't see or hear in MSM about the Orlando massacre. As we always say: Read, watch and decide for yourself.

“I mean, I’m pretty sure it was more than one person,” witness Janiel Gonzalez told a bevy of reporters. “Like I said, I heard two guns going off at the same time,” he continued, gesturing back and forth with his fingers indicating the gunfire emanated from separate directions.

Further, he explained, panicked clubgoers had difficulty locating exits during the shooting, which he estimated lasting eight minutes — plenty of time for the shooter(s) to reload multiple times. When Gonzalez and others finally found a door hidden behind a curtain,

“There was probably like 50 people trying to jump over each other just trying to exit the place, and there was a guy holding the door. The guy was holding the door and not letting us exit.”

When they asked why he was blocking their only way out — as the shooting seemed to be drawing near — Gonzalez said the man told them, “No, you guys have to stay inside. Stay inside.” Desperate, the group demanded he move to give them safe passage — but the man’s steadfast refusal to do so provoked a serious question.

blacklistednews.com/Media_Refusing_to_Cover_Numerous_Witness_Accounts_of_Multiple_Shooters_in_Orlando_Massacre

FBI Admits: 'Orlando Shooter May Not Have Worked Alone'
http://dailybail.com/home/fbi-...

5 Reasons To Question The Official Story Of The Orlando Shooting
http://www.blacklistednews.com...

Orlando Shootings: Terrorism or False Flag?
By Stephen Lendman
http://www.globalresearch.ca/o...

Terrorism and G4S: Was Orlando Another False Flag?
June 12, 2016 by Kevin Ryan
http://www.washingtonsblog.com...

Orlando nightclub shooting: Yet another false flag?
It sure walks, talks and quacks like one
By Kevin Barrett on June 12, 2016
http://www.veteranstoday.com/2...

The Orlando Nightclub Shooting & the Media-Government Alliance 
http://www.thetruthhound.com/t...

DHS, FBI, and others - somehow 'missed' a potential attack, by not properly connecting the dots.  This is an extremely unlikely scenario - the event happened 15 minutes from a local FBI field office, who has their "Pulse" on the local community.  Just last month, the FBI foiled a terror plot involving a man who wanted to apparently bomb a synagogue.  They monitor all electronic activity, are we to believe they didn't pick up any 'chatter' ?   We can't disprove a negative, there's no evidence supporting the incompetence theory - that it was a 'mistake.'  Many will say it was incompetence, because Omar was in contact with the FBI previously - and the thinking goes, they already 'knew' about his connections to Islam, and so - should have stopped him from buying guns at the first checkpoint, and at the second checkpoint - from any preliminary preparations that were made minutes leading into the event (such as communication with his Terrorist friends).  Not incompetence.

zerohedge.com/news/2016-06-13/false-flag-blow-back-or-incompetence-forex-look-orlando-shooting

Overnight

Japanese equities took another hit overnight, falling to two-month lows as concerns grow about Brexit. The Nikkei 225 fell 1.3% early after hitting a low that touched an early April low of 15,817.74. Some of the problem storms from a stronger yen, up 12% since January against the dollar as exporters feel the pain. Just yesterday it hit a six-week high of 105.735.

Global risk off trades have dropped replaced by risk on so investors look for safe havens.The Korean Kospi edged lower 0.4%, the Australian S&P/ASX 200 lost 1.8%, the Hang Seng Index fell 0.1% and the Shanghai Composite Index moved up 0.2%.

Japan’s Nikkei Stock Average was down 1.3%, Korea’s Kospi fell 0.4% and Australia’s S&P/ASX 200 lost 1.8%. The Hang Seng Index retreated 0.1%, while the Shanghai Composite Index rose 0.2%.

Chinese investors appear to be waiting on MSCI’s decision, to be announced Tuesday evening in New York, on whether to include Chinese stocks in its widely tracked Emerging Markets Index.

Amid the uncertainty leading up the U.K. referendum next week, investors are shedding riskier assets such as stocks and buying yen and gold. Gold rose overnight and was recently trading at $1,284.50 per troy ounce.

All Tears Have Salt In Them

Fifty-one people were just butchered in Orlando.

Another 50 were injured and those are the one we know about. Even among the lucky non-injured, how much damage was done? Anyone think that was an act of rationality? Anyone think gay lives are less important than, say, lives of African-Americans or Hispanics? We don't don't know the statistics but odds are great that horrible list of victims includes Caucasians, Hispanics and African-Americans.

Let's be clear here. We are not gay. There are news stories the FBI was focusing on homeless people not just in Florida but other places. There's a reason for that, one MSM denies and refuses to focus on. From Connecticut to Colorado, the shooter was a mentally ill person, one known with mental illness. In the Colorado case he even told his psychiatrist, according to reports, he had urges to kill lots of people. Given what we know so far from Connecticut to Colorado to San Bernardino to Orlando or those Twin Towers how many were done by the homeless?

For those who despise the obvious, there are two terms for this--pattern and profile.

Is the psychiatrist libel? Did he or she inform the authorities? We have a so-called President who is either unable or unwilling to call this what it is. One of the reasons should be fairly obvious. If he does he won't be welcome in any mosques anytime soon. You have a whole horde of people from the Beltway to Hollywood who want to take the easy path--focus on the weapons not the reasoning behind the massacres. Some things are just too unpalatable to stomach.

A lot of gay people--as should be their right-- voted for Mr. Obama and they most likely will step peacefully into polling booths this November and vote for Hilary. Yet the same rights should be afforded to those who will vote for her opponent whoever it is.  Much of what we have today is a byproduct of PC. The chicken late or soon finds it's way home to roost.

How long will it be before one of the victims in these human slaughters will be a loved one of a Congressperson who gets the toe tag? Brutal. Crass. Insensitive?

Tell that to the friends and loved ones of the Orlando slaughter.

All tears have salt in them.

Linear Paradoxes

Linear thinking is a paradox. That is to say it's paradoxical like many things in life. Things are not always what the seem, as Gilbert and Sullivan wrote: "Skim milk masquerading as whip cream." Or more recently a certain person masquerading as a President.

A+B = C is a process of linear thinking. It most certainly can work when A and B and C are numbers. Just as the reverse would be true: C-B = A. Numbers play a huge role in investing. But behind those numbers are people and despite what one might think, when A+ B = C are not numbers but Alfonso and Betty and Carl, linear thinking is nearly worthless.

Only cellar-dwelling economists with their econometric models think people behave rationally all the time. It's understandable. And it's comforting, like an evening glass of decent wine after a long, tedious day. But it's saddled with the same flaws as the Random Walk theory, humans can't outperform the numbers or averages. As a matter of fact they can and do, often outperforming the averages going up and going down. It's just that all humans can't do it and none can do it all the time, the worst nightmare of the PC tribe. No outliers allowed.

Despite all the nonsense of psychiatry and psychology studies we've had for years, they've yet figure out human behavior. One reason is they keep looking for ways to prove and they continue to assume humans in the main behave rationally, whatever that is. It makes them feel good and important when they have outliers whom they can label mentally sick or deranged. One can almost hear their sighs of relief. It's labeled employment. The so-call in-crowd, therefore, remaining folks, must be rational. What they fail to get is something called circumstances.

Here's a chart with a link to the rest of the article. One of the most obvious human acts of irrationality was inventing a 2,500 pound metal and fiber glass object that can go from 0-100 miles an hour in 10 or 20 seconds, putting a steering wheel behind it and then putting a human being behind the steering wheel.

Forget your religious preferences, if you have any. That's a real leap of faith. We could go on with cell phones, texting and GPS devices and what have you.The idea that people would use such rationally is probably buried somewhere in one of those economists' econometric models about the flood of high paying jobs the Fed has created since 2008.










After hanging around the investment world for more years than we care to recall, we can suggest (note the word, suggest) one piece of advice whether you're talking insurance company annuities or mutual funds or stocks and so forth that the author of this article captures in truth: The first major flaw in the plan is the “compounding” of annual returns over time which never happens. The second, and most important, is the future expectation of returns for individuals over the next 10-20 years.

These are all classic examples of linear thinking. Get sucked in with your own A +B = C thinking. Just be prepared to own it when you do.

davidstockmanscontracorner.com/why-the-next-decade-will-foil-financial-plans

Overnight

For Japan it's the same old same, same old with concern about weak consumer demand and flagging exports as the yen has appreciated 12% against the dollar so far this year. Then, too, many are waiting to see what if any results kick in from negative zero interest rates. Patience in some quarters are growing thinner.

On the other side of the globe the U.S. central bank meets this week as Asian investors keep a sharp watch out for will they or won't they hike rates. As of now the consensus appears they won't. Asian shares traded lower overnight with concerns about the U.S. central bank and the Bank of Japan on tap this week and Brexit to follow a week later. It's fairly safe call volatility will remain an issue until after the UK votes in or our.

The Nikkei dropped 2.6% as a stronger yen put stress on sharerices. Bond yiels in Korea dropped as Reuters reported: "The yield on South Korea's benchmark 10-year treasury bonds fell below the comparable U.S. yield on Thursday for the first time in nearly 10 years, reflecting their divergent monetary policy settings. South Korea's 10-year treasury bonds yielded as low as 2.463 percent, compared with 2.473 percent for the U.S. Treasury Bonds. It was the first time since October 2006."

The Kospi was off 1.6%, the Hang Seng index fell 2.41%, the Shanghai composite edged 0.71% lower and the Shenzhen composite gave up 0.88%, the ASX 200 down 0.92%. Oil traded struggled with the magical $50 a barrel level barely staying above it.