Tuesday, October 18, 2016

PC Racism Is OK

This is about par for the current curse and course of PC. The article states 50% of the funds for the institute came from tax dollars, so does this mean those who were taxed and differ with these obvious racial choices can ask the Federal government for a rebate? And you're worried about Trump?

How about a rebate?
----

Smithsonian on Why Clarence Thomas is Not in New African American Museum: ‘We Cannot Tell Every Story’

By Penny Starr | October 18, 2016 | 10:16 AM EDT

Justice Clarence Thomas (AP Photo)
(CNSNews.com) – The new Smithsonian Institution’s National Museum of African American History and Culture’s tagline is “powerful moments in African American history, culture, and community.” However, the museum – with a $540 million price tag funded 50 percent by U.S. taxpayers and with a collection of more than 36,000 artifacts and 100,000 people represented – doesn’t include many prominent blacks, including Supreme Court Justice Clarence Thomas and Edward Brooke, a Republican who became the first African American to be elected to the U.S. Senate by popular vote in 1966.
After touring the new museum and exploring the website, which contains information on all the exhibitions in it, CNSNews.com asked the Smithsonian why Thomas, Brooke and eight other prominent men and women are not included in the museum.
CNSNews.com asked: “Many prominent African Americans are not included in the museum, most notably Supreme Court Justice Clarence Thomas … Can [the institute say] why Thomas and the others listed below are not a part of the museum exhibits?”

Linda St. Thomas, chief spokesperson for the Smithsonian, replied:

“There are many compelling personal stories about African Americans who have become successful in various fields, and, obviously, Associate Justice Thomas is one of them,” St. Thomas said in an email. “However, we cannot tell every story in our inaugural exhibitions.

“We will continue to collect and interpret the breadth of the African American experience,” St. Thomas said.

The other African Americans not included in the museum, who are conservatives, are:

• Cora Brown, first African American woman elected to a United States state Senate, winning a seat in the Michigan State Senate in 1952.

• Alveda King, niece of Martin Luther King Jr., who served in the Georgia state legislature and is a pro-life advocate with Priests for Life.

The Black Lives Matter organization is represented in the museum, including support for homosexual blacks. (CNSNews.com/Penny Starr)
• Sen. Tim Scott (R-S.C.), first African-American senator from the state of South Carolina, the first black Republican elected to the United States Senate since the election of Edward Brooke in 1966, and the first elected from the South since 1881, four years after the end of Reconstruction.

• Michael Steele, first African-American chairperson of the Republican National Committee, who served from January 2009 until January 2011.

• Kenneth Blackwell, mayor of Cincinnati, Ohio from 1979 to 1980, the Ohio State Treasurer from 1994 to 1999, and Ohio Secretary of State from 1999 to 2007.


The left-wing group Code Pink is represented in the museum in images of a Black Lives Matter protest. (CNSNews.com/Penny Starr)
• Thomas Sowell, American economist, social theorist, political philosopher, and author.

• Shelby Steele, American author, columnist, documentary filmmaker, and a Robert J. and Marion E. Oster Senior Fellow at Stanford University's Hoover Institution.

• Walter E. Williams, American economist who is the John M. Olin Distinguished Professor of Economics at George Mason University.

Questionable Cushion

It hardly a riddle that needs solving. The Fed has painted itself into the proverbial corner. They've all but thrown in the towel on returning any time soon to "normal" growth and now with Yellen's "higher pressure" economy speech they've also told you something else.

They'll have a difficult time getting overly aggressive with kicking up interest rates should inflation get too far out of hand. They are in the minds of many already lodged in purgatory. Miscalculating further would put them some other place they don't want to go.

So a stronger dollar and higher bond yields might not cushion against higher gold prices as in the past.
----
kitco.com/news/2016-10-17/Higher-Bond-Yields-Won-t-Dim-Gold-s-Luster-Analysts.

(Kitco News) - Higher global bond yields might not be a major hurdle for the gold market as analysts say there are other factors that still make the yellow metal attractive.
rising global bond yields won't be a major hurdle for gold prices according to some analsytsBond markets are grabbing investors’ attention Monday as yields in U.S. 10-year note rose overnight to its highest level since early-June; at the same time, German and U.K. 10-year bonds hit their highest levels since late-June. Despite being off their recent highs, yields are still relatively elevated with 10-year bonds trading around 1.76%. Meanwhile, U.K gilts had a yield of 1.15%, its highest level since the Brexit referendum. Finally, German Bund managed to jump back into positive territory with its yield at 0.073%.
This jump in yields was not enough to hurt gold with the metal managing to hold key support above $1,250 an ounce on Monday.  December gold futures settled the day at $1,256.60 an ounce, up 0.09% on the day.
Barry Potekin of RMB Group, said that contrary to historical norms, he could see gold move up in step with bond yields. He added that opportunity costs aren’t the only thing that investors should be paying attention to in this current market environment.

Monday, October 17, 2016

New Thug

In our recent blog, "Choose Your Thugs Carefully," we noted a new economic thug is here, slow growth and inflation. Now you have even more evidence with the recent Bank of England announcement.

On Friday, both the Bank of England AND the US Federal Reserve made clear signals that they WANT inflation.
The Bank of England is prepared to tolerate higher inflation over the next few years and will keep interest rates low to support economic growth, according to Governor Mark Carney.
Source: Telegraph
In a further indication that the Federal Reserve will be inclined to let inflation run hot for a while, Chair Janet Yellen on Friday said it's useful to consider the benefits of a "high-pressure economy."
Some would call this stagflation. What you really want is to turn it into money. This is Fed Chair Yellen's new buzz word, pressure economy. The Fed is out of ideas and bullets.  This is their version of Hillary's ear piece during the debate. "Hey, Mark! This is what we're doing."  "Hey, Janet. Roger!"
 You might want to consider the inconsiderable up to now, commodities. And we will let you imagine what one or two of them might be.

Chinese Capital Flight

A sudden drop in Chinese B shares causes concern about capital flight.

There is market speculation that B shares can no longer be used as a tool to hedge against the yuan," said Jackson Wong, associate director at Huarong International Securities Ltd. in Hong Kong. The State Administration of Taxation last week published rules requiring banks to perform due diligence on non-resident financial accounts from 2017.

“We saw some unknown institutions’ heavy selling around 2 p.m.,” said William Wong, Hong Kong-based head of sales trading at Shenwan Hongyuan Securities Ltd. “It is very likely that some overseas investors want to move money out” after the new rules.
 zerohedge.com/news/2016-10-17/shanghai-b-shares-unexpectedly-crash-over-6-last-90-minutes-trading



http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/10/16/shanghai%20b_0.png

Overnight


Maybe an interest rate hike isn't for certain come December after all. At least that's what some Asian investors seemed to be saying in overnight trading, according to the WSJ, "as weak economic data from the U.S. prompted traders to dial back expectations that the Federal Reserve will raise interest rates in December." The meme here is that rising rates in the U.S.would cause money to flow that direction hurting Asian markets in the process.

The Nikkei 225 regained earlier losses and was up 0.1% and other markets also gained with the Hang Seng Index up 0.9%, the ASX 200 higher 0.4%, the Kospi rallied 0.2% while the Shanghai Composite Index managed a 0.5% gain. Still U.S. data about industrial production disappointed coming in at a 0.1% gain when 0.2% was expected. One pundit referred to the 0.1% gain as "anemic,"obviously not helping investor moods.

The yen edged up against the dollar, trading at 103.79, rising from Monday's 104.04 level. Oil also rallied Tuesday with Brent adding 0.62% at $51.84 while U.S. crude futures tacked on 0.6% at $50.24. Gold overnight changed direction by halting a 6% decline over the last few weeks.









Maybe Not So Fast

Wall Street is known for many things. One that gets much less attention than it deserves is its myths.

For almost since the middle of this so-called recovery we've heard about all the cash that's sitting on the sidelines and in corporate coffers just waiting to pile into the market when we reach some sort of so-called normal.

Well, maybe that calls for another of those not so fast.
----
While the "cash on the sidelines" myth has infuriated many, it remains a staple excuse for why there's always a buying opportunity in stocks when the market dips. However, as Ned Davis Research warns "we can't find much cash on the sidelines... and when we do it seems mostly offset by debt/liabilities," crushing yet another pillar of strength for stocks.
Ned Davis notes there is a lot of talk about all the cash on the sidelines from pessimistic investors that could power the market higher. There is some public caution and overall savings have risen somewhat, but I am having a hard time finding evidence that cash (potential demand) is anywhere near the market value of stocks (potential supply).

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/10/16/20161017_cash1_0.jpg

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/10/16/20161017_cash2.jpg

 In fact, the only place Davis really finds a lot of cash is from nonfinancial corporations. This cash is being used aggressively to buy back stocks plus mergers and acquisitions. My only problem with corporate cash is that it seems to be financed not out of profit growth, but rather debt offerings. Either way this produces demand, but it can also hurt balance sheet quality (as we have detailed previously)

More: zerohedge.com/news/2016-10-17/market-myth-shattered-ned-davis-warns-theres-no-more-cash-sidelines
 

Stressed


Nearly 40 percent of Americans have experienced tension with friends or family over the 2016 presidential election

Together with SSRS, a survey research firm, ABC News asked voters how often they discuss the presidential election with relatives or friends and whether the subject causes any friction.
Ninety percent of Americans talk about the presidential race often with friends or family, the survey shows. 

Of those, 58 percent discuss the election very often and 32 percent somewhat often. Only 4 percent never talk about the presidential election. 

Thirty-seven percent of respondents said the 2016 race has caused tension with relatives or friends.
The major-party nominees, Democrat Hillary Clinton and Republican Donald Trump, are two of the most disliked presidential candidates in history. An ABC News/Washington Post released today found that 63 percent of registered voters see Trump unfavorably and 57 percent have an unfavorable view of Clinton — the highest such ratings for major-party candidates in ABC/Washington Post polling dating back 32 years. 

Even though the presidential contest is causing at least some friction in many voters' relationships, more than three-quarters of Americans think it is appropriate that children pay attention to the race. Seventy-one percent of respondents said it is appropriate that children pay attention to the election, and 29 percent said it is inappropriate.
 
The ABC News/SSRS Poll was conducted using the SSRS probability panel. Interviews were conducted online Oct. 13 and 14, 2016, among a nationally representative sample of 256 respondents age 18 or older. The margin of error for total respondents is +/–7.9 percent at the 95 percent confidence level. Design effect is 1.67. The SSRS probability panel is a probability-based online panel of adults recruited from random-digit-dialed landline and cellphone numbers. For more information, visit http://ssrs.com/research/ssrs-probability-panel/.


Too Many Now Know

http://news.nationalgeographic.com/content/dam/news/2016/10/13/cartograph/03_cartograph.adapt.590.1.jpg
This is a 2012 map and though it doesn't taken in the phony electoral college vote set-up, even if only two states voted red or blue they should be allowed to leave. The current situation does not and will not work. It can be resolved peacefully or otherwise, not that this is something we wish for, recommend,  suggest or hope for. It's simply something one would have to be blind not to see just as were those pundits who wrote off Trump and the appeal his message would have to millions. Call them all the names you want, but we're willing to bet there are just as many intelligent, educated, decent, non-bigoted, creative, non-hateful people among them as there are among you. And yes they're a diverse group, maybe not to your level of diversity ,but that's been the rub all along hasn't it, one group trying to tell the other the way it's going to be?

Kansas is not Indiana or New York.There are boundaries, geographical lines between states for a reason. No one should have to or be told to leave. Today more than ever people want a say in their self-determination. That say can come either peacefully or via violence, again something no thoughtful, loving person would ever wish. The two party system is broke, the separation of powers is broke and the experiment--however magnanimous it was--is now also broke for tens of millions of people,many once know as the middle class.

One could waste energy arguing about who or whom or what destroyed the middle class, but that's now totally irrelevant. As this article shows tampabay.com/blogs/the-buzz-florida-politics/trump-fans-boo-walk-out-on-amy-schumer-in-tampa the gloves are off.  Let's get this party going. It's been a long time in the wind.

There doesn't have to be any riots or even rancor. If Trump loses, the states that vote red could just follow the Brexit lead and quietly opt out of the union. There are no doubt millions of folks who would donate money to pay an exit fee so long as it's not exorbitant.Those who live in the blue states who wish to leave could easily mitigate to the red ones. And vice versa. We could have some real native migration since this would clearly involve people of all races and religions.

Only the hammer and tong people on the left believe this would not involve a wide variety of Americans with different backgrounds, races and creeds and levels of intelligence, education and creativity. This sounds like an idea who time is now no matter who wins this election. At the very least this should be up to the people, not the politicians, bureaucrats and academics.

We've said from the beginning this is the healthiest election in our lifetime, especially when it was reduced to these two final candidates. People no longer need two obviously bankrupt parties to tell them the person who ought to occupy which office. That's an insult to the collective intelligence of this nation no matter how low your once private and now quite public opinion is of them.

Unless you're totally nearsighted and we don't think you are, this will not end with this election. Power might win out in the short run, but truth isn't going anywhere. And now too many people around the globe know the truth.



The Speaker Speaks

 http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2016/10/17/2016.10.17%20-%20Paul%20Ryan%201_0.JPG
If there's a Paulie come lately, it's one the WSJ's editorial board's favorite lap dogs, Paul Ryan, the Republican Wisconsin whiz who doubles as the Speaker of the House. We say that with some intrepidity since we doubt if he's the speaker even in his own house.

Rumors are afloat that lone of those cryo sperm joints has requested some Ryan sperm cells. They want to use them to clone brave risk takers.
----
In a previous incarnation he was most likely a hedge fund manager or a leading NFL punt returner ,a real risk taker this guy.

Of course, the press release came after the following tweet last night in which Trump called out Ryan for failing to respond to new allegations about the "quid pro quo" arrangement between the State Department and FBI.

As a reminder, about a week ago we wrote about then newly released FBI interviews with numerous references to State Department officials, including Patrick Kennedy, applying pressure to subordinates to change classified email codes so they would be shielded from Congress and the public (see "Two Boxes Of Hillary Emails Mysteriously Disappear").  Here is the relevant section from the FBI's interview notes:
Hillary

Then, yesterday, according to a report from Fox News, new FBI files reviewed by Jason Chaffetz (R-Utah), Chair of the House Oversight Committee, potentially pointed toward a "quid pro quo" arrangement between the State Department and the FBI whereby Patrick Kennedy, a senior executive at the State Department, offered "additional slots for the FBI at missions overseas" in return of "altering the classification" of certain Hillary Clinton emails.  If true, of course, this new evidence could serve to discredit the entire FBI investigation as the notes are a "flashing red light of potential criminality."
FBI interview summaries and notes, provided late Friday to the House Government Oversight and Intelligence Committees, contain allegations of a "quid pro quo" between a senior State Department executive and FBI agents during the Hillary Clinton email investigation, two congressional sources told Fox News.

"This is a flashing red light of potential criminality," Republican Rep. Jason Chaffetz of Utah, who has been briefed on the FBI interviews, told Fox News.

He said "there was an alleged quid pro quo” involving Undersecretary for Management Patrick Kennedy and the FBI “over at least one classified email.”

"In return for altering the classification, the possibility of additional slots for the FBI at missions overseas was discussed,” Chaffetz said.

"Both myself and Chairman Devin Nunes of the House Permanent Select Committee on Intelligence are infuriated by what we have heard," he added.

"Left to their own devices the FBI would never have provided these [records] to Congress and waited until the last minute. This is the third batch because [the FBI] didn’t think they were relevant," Chaffetz said.
The plumes of smoke continue to grow...the only question now is whether or not the actual fire will be discovered before November 8th?
----
And there you have it. The Hillary clan is in their fourth quarter stall mode.

zerohedge.com/news/2016-10-17/paul-ryan-blasts-fbi-mishandling-bears-all-signs-cover


Good For Them, Great For You



How do you know when you have a real pathetic leadership problem, one full of weak wusses, who want to bribe their way out of the ever-present clutches of big bankers and those ubiquitous, vindictive EU bureaucrats?

If you're a UK citizen who voted for Brexit you are now learning the hard way. The issue here is jobs. In this case, banking jobs in London's financial center. Under a scheme being considered, the Financial Times reports, "Britain would continue to pay billions of pounds in the EU budget after Brexit to maintain cherished single-market access for City of London and other sectors being discussed...."

What's supposedly at stake here is "passporting" rights--that is, one of the phony code terms globalists love to toss around to described their beloved free trade meme. It's free trade alright as long as we say it is. The EU is crumbling before the eyes of the globe. It was a bad idea, badly concocted by some very bad bureaucrats and anti-anxiety prescriptions sales are soaring.

As the Brussels' preference given to the big boys--France and Germany just in the case of banks for openers--proves, it was as layered as a wedding cake from the start. Corruption reigns today as it has for a long, long time. That will never get corrected--if ever--by wusses and stomach-less leaders. Nor will a docile populous solve anything. Leverage to masses comes around rarely.

One of the Times other stories today centers on "too big to fail banks," i.e., Wells Fargo, the San Francisco mortgage juggernaut caught creating phony customer accounts that cost 5,300 presumably miscreant junior employees their jobs. So far only two senior ones have paid any tariff and in their case they're off to a well-paid retirement and most likely in a few seasons lucrative consulting work or seats on boards of directors, all good paying gigs.

So how do you know there is corruption from the top down? Here's one way. The FT, quoting another source, "Since 2012, the top five executives at Wells have banked $450m in performance pay..." And the Times goes on: "Despite the recent disgorgements, only a fraction has been returned."

As we've said before, white collar criminals, if punished at all, go to the local spa. Only blue collars ones hear that clanging sound of steel doors and gates closing behind them. It all seems so corrupt, one wants to conjure the name Warren Buffett, a huge shareholder in the firm, and asked again: What did he know and when did he know it?

As we said: Leverage to the masses comes rarely. There's an old Zen point: People treat us exactly the way we want them to, meaning we allow them to. In sports a big meme is next man when something goes wrong. Corporations follow a similar code. Politicians and bureaucrats who fail to follow the will of the voters need to be held to the same code. Next person up. No loitering or lingering.

It's one of the lessons brought to us by the PC, Zero-tolerance crowd. If it's good for them. It should be great for you.