Sunday, June 26, 2016

Overnight

With post-Brexit still much in the news, Asian shares continued with the exception of Japan to trade lower as concerns about volatility weigh on markets. The Hang Send dropped 1.4%, the Shanghai Composite Index fell 0.5%, the Kospi lost 0.7% while the Australian ASX 200 traded flat.

The Nikkei recovered from last week's sell off after the UK voted to leave the EU, rising 1.8%, still way down from last Friday's almost 8% drop. But China being China devalued the yuan in the largest drop since last summer.

The volatility should not surprise as investors seek to get a fix on what Brexit means on a longer term, focusing on whether it will lead to more countries move to egress the EU. The People's Bank of China fixed the yuan at 6.6375 to the U.S. dollar, nearly a 1% depreciation and that almost matched the 1.1% depreciation the PBOC implemented last August. Some will deny it, but this is about trade.

The expectation is that trading will remain volatile this week, as investors continue to factor in the implications of the U.K. referendum outcome. They are monitoring how the country will go forward in its relations with Europe, as well as any further financial contagion. Reuters reported: "MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shrank losses to 0.6 percent as companies with UK exposure in particular came under more pressure."

Safe-haven assets like government bonds and gold also rallied with gold finishing at $1,323.68 an ounce.

Partly True

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
Now that a stalwart of PC financial news group, CNN Money, has laid the bad news on us, London financial market in a panic after Brexit turns out the light and closed the door on UK EU membership, we're all suppose to quiver and shake and act contrite as if we're going to miss Big Brother.

Dutch finance minister Jeroen Dijsselbloem, a key euro official, said losing full access to the rest of Europe would be the "price" Britain would pay for Brexit. Speaking to Dutch TV station RTL on Friday, Dijsselbloem said rival financial centers like Amsterdam and Frankfurt would benefit.The governor of the Bank of France also questioned London's future as the financial capital of Europe. 

This is post-financial earthquake aftershock tremors, thinly veiled threats designed to strike fear and angst. Here's another quote: "Leaving the union may disrupt this link, with some high-profile EU officials already calling the so-called "passporting rights" of U.K. banks into question."  Another big lie is set up under the straw man stratagem. You wave in front of the sinners what they supposedly had but now through their foolishness lost. "Britain has already lost an influential voice in Brussels, after Britain's EU commissioner Jonathan Hill resigned over the weekend. He was in charge of the financial services portfolio within the commission, which proposes European laws and enforces them. Latvian commissioner Valdis Dombrovskis will now take over the crucial post."
This is typical MSM journalism to inject guilt, like sellers' remorse in the stock market. To hear the shills tell it the EU was a paragon of goodness dressed all in pure white robes. Here's another CNN hatchet job: money.cnn.com/2016/06/24/investing/brexit-uk-companies/index. The ink is hardly dry on the papers and the sky is falling. Notice how this next piece is worded. 

British Airways owner IAG (ICAGY) almost immediately issued a profit warning. The company said it anticipates minimal long-term impact, but it issued a profit warning because of a difficult trading environment and current market volatility. 

Low cost airline EasyJet (ESYJY) was slammed. The stock fell over 14% Friday. CEO Carolyn McCall said the company doing everything it can to ensure "the U.K. remains part of the single EU aviation market" so planes can still fly freely around Europe.So here's a question: how freely were planes flying around Europe before the advent of the EU?  These people want you to think you to think a return to prehistoric times is certain without the Brussels bureaucrat stooges. 

And that's half true. Keep following them them and that's where we'll all wind up.

You Never Know

 https://si.wsj.net/public/resources/images/BN-OQ521_brexit_P_20160624142136.jpg
If you ever played poker, you know deception is necessary. It's called bluffing.

The contempt and arrogance of Brussels bureaucrats showed up big time in the Brexit saga. They didn't miscalculate the British people. That's too deceptive, too dishonest a term.You can't miscalculate something you don't recognize or believe exists. Their views from the beginning were utter contempt and disdain for common people.

In a WSJ Weekend piece, Fraser Nelson, the editor of Spectator and Daily Telegraph columnist, writes in his "A Very British Revolution," The world is looking at Britain and asking: What on Earth just happened? Those who run Britain are asking the same question.

Never has there been a greater coalition of the establishment than that assembled by Prime Minister David Cameron for his referendum campaign to keep the U.K. in the European Union. There was almost every Westminster party leader, most of their troops and almost every trade union and employers’ federation. There were retired spy chiefs, historians, football clubs, national treasures likeStephen Hawking and divinities like Keira Knightley. And some global glamour too: President Barack Obama flew to London to do his bit, and Goldman Sachs opened its checkbook.
And none of it worked. The opinion polls barely moved over the course of the campaign, and 52% of Britons voted to leave the EU. That slender majority was probably the biggest slap in the face ever delivered to the British establishment in the history of universal suffrage.
Mr. Cameron announced that he would resign because he felt the country has taken a new direction—one that he disagrees with. If everyone else did the same, the House of Commons would be almost empty. Britain’s exit from the EU, or Brexit, was backed by barely a quarter of his government members and by not even a tenth of Labour politicians. It was a very British revolution. 

But the truth is it goes way beyond the British establishment. There are others lining up now, Sweden, the Netherlands, Italy, maybe even France. In America it could be called a Texit. Mr. Nelson goes on to try to make a point--incorrectly and completely misunderstood in our view--others are trying to make summarized in these two paragraphs of his.
Donald Trump's arrival in Scotland on Friday to visit one of his golf courses was precisely the metaphor that the Brexiteers didn’t want. The presumptive Republican presidential nominee cheerily declared that the British had just “taken back their country” in the same way that he’s inviting Americans to do—underscoring one of the biggest misconceptions about the EU referendum campaign. Britain isn’t having a Trump moment, turning in on itself in a fit of protectionist and nativist pique. Rather, the vote for Brexit was about liberty and free trade—and about trying to manage globalization better than the EU has been doing from Brussels.

The Brexit campaign started as a cry for liberty, perhaps articulated most clearly by Michael Gove, the British justice secretary (and, on this issue, the most prominent dissenter in Mr. Cameron’s cabinet). Mr. Gove offered practical examples of the problems of EU membership. As a minister, he said, he deals constantly with edicts and regulations framed at the European level—rules that he doesn’t want and can’t change. These were rules that no one in Britain asked for, rules promulgated by officials whose names Brits don’t know, people whom they never elected and cannot remove from office. Yet they become the law of the land. Much of what we think of as British democracy, Mr. Gove argued, is now no such thing.

What Mr. Nelson seems to miss just as in the UK, there are rules in the U.S."promulgated by" officials whose names Americans don't know, "people they never elected and cannot be removed from office. Yet they become the law of the land." We will cite just too easy examples, both of which profoundly effect the lives of many, many people, not just in the now but more importantly the future, one local and one national: the Federal Reserve Board of the United States and any regional coastal control board.

Instead of grumbling about the things we can’t change, Mr. Gove said, it was time to follow “the Americans who declared their independence and never looked back” and “become an exemplar of what an inclusive, open and innovative democracy can achieve.” Many of the Brexiteers think that Britain voted this week to follow a template set in 1776 on the other side of the Atlantic.

Mr. Gove was mocked for such analogies. Surely, some in the Remain camp argued, the people who were voting for Leave—the pensioners in the seaside towns, the plumbers and chip-shop owners—weren’t wondering how they could reboot the Anglo-Scottish Enlightenment for the 21st century. Perhaps not, but the sentiment holds: Liberty and democracy matter. As a recent editorial in Der Spiegel put it, Brits “have an inner independence that we Germans lack, in addition to myriad anti-authoritarian, defiant tendencies.”

The America that your praise, Mr. Nelson, was founded on that "inner dependence...in addition to  myriad anti-authoritarian, defiant tendencies," characteristics much adopted at least in part from it's UK roots.

You then, Mr. Nelson, in all your glibness spread a little of your own deception, citing if only the Germans would have a cut a better deal for the UK to control its own immigration problem things might have turned out different.  "The EU," you write, "took a gamble: that the Brits were bluffing and would never vote to leave."A large segment of Americans, hardly what they've been unjustly labeled, "haters" or "xenophobes" by MSM and others, and evidently you, want the same thing, a little more say in their immigration problem and in their lives. We seem to recall Angela Merkel facing a similar outcry in Germany.

Trump traction has much more to do with the issues that you cite pushed Brexit into the leave win column that people like you are willing to understand or admit.  One wonders who the real xenophobes are? The Trump movement is hardly a turning in, to use your condescending view, "a fit of protectionist and nativist pique." It's a turning away from smothering centralized control, a breath of liberty, sovereignty and freedom your beloved Brits just demonstrated they so desire and so deserve, sir. You conclude, suggesting: You never know: the principles of democracy,sovereignty and freedom might just catch on.

You never know:  And people like you, sir, might get it some day; that's what others also want.




On His Way Out

A dog's going to scratch we're he itches and the chips will falls where they will.

It's a decent idea, unless you're short, to avoid those falling chips if you can . After the Brexit experience half the globe is trying to assess the damage and where some of those chips will hit the ground next. Mixed therein is a constant--human emotions like anger, resentment,  joy, relief and revenge. You can count on it. Another thing one can count on is the range of these assessments.

If moderation is, as it's been suggested over the centuries, a good thing, it's probably even more significant now. In retrospect, it's clear many were way to overloaded the long side of the Brexit gambol. So far that seems to have been pushed adrift by the tragic side. In this case, last one out turn off the lights. Maybe. Winston Churchill reportedly remarked most of us whenever we're fortunate enough to trip over opportunity simply pick ourselve up, brush ourselves off and move on down the street. Unless you need the money, don't be too quick to get flushed out.

We happen to think the breakup of the EU in the long run in the name of personal liberty will be one of humanity's finest hours before the robots displace the whole tribe. Evolution is what evolution does. One apparently popular MSM theme now is money will avoid heading to the UK and many of those potential UK wannabes. We think just the opposite. We think after the short-term dust settles it will attract money for obvious reasons. A simple one is an independent pound. Not too many so-called safe haven, soverign currencies around. Sovereignty and the EU was a classic get-go oxynoron.

We also believe the UK exit will force the EU to show it's smothering arrogance and drop more money on lost causes like Greece. In short, Greece just picked up more bargaining chips. So did Italy and the perennial rule breaker France. Toss in Spain and Portugal and you have the sauce for an even greater spending spree with the ultimate default later. It often takes a lost cause to recognize one.

So the smart money is leave now if you want to survive later to avoid the rush. A dog is going to scratch wherever he itches. Leave the light on for the last Brussel's bureaucrat out the door. He will probably stop, look and assign the light switch to a committee on his way out.

Friday, June 24, 2016

If You're Smart

If you're smart you will use this Brexit turmoil to pick up some cheap assets, globally, but you need to do your homework.

 One hint is those assets that went the opposite direction of gold, for example. Panic is panic and the species still known as Homo sapiens just can't help it. They're wired that way. A stronger dollar will temporarily dent U.S. multinationals meanwhile upping the pain for commodity-based emerging markets. That could increase the speed of the BRICs coming up with an alternative to the dollar for international trade down the road.

The pundits will, as is their weakness, put too much attention on analyzing the micro. To make money that's a loser's game. Great for the ego, meaningless for your bottom line. There is always fallout. The Swiss franc that many believe was overvalued anyway is now more overvalued. The yen follows the trade winds, like any good clipper ship of days gone long ago.

The currency market as has been already demonstrated will be where a lot of the action happens. Japanese Prime Minister Abe's got more problems now than he thought he had. Eurosceptics from France to the Netherlands to Sweden are demanding their own referendum. Even Scotland's call for one to leave the UK--something they should've done the first time around minus all the heavyweight elitist scaremongering--is an indirect blow to the EU. It's part of a trend and trends as they gather momentum scare the status quo. You got one, we want one too.

A recent pole--if anyone can trust those mostly MSM manipulated jokes--showed French voters more skeptical about the EU than British voters. That should make Germany happy.  A hidden theme here is one MSM and the elites always tried to hide: You're on your own and you should be. Take advantage of the freedom.

Here are a couple of post-Brexit quotes from the Washington Post, just what one would expect from that corner. As is their reputation, they have it all wrong. The open borders didn't fail simply because it was unpopular it failed because it didn't create the big lie the Post wants you to believe. Nor was the single market trading scheme near what these folks claim. There's another question here. Whatever so-called success single bloc trade enjoyed was enjoyed by whom?

In an ideal world, the Brexit shock would galvanize Europe into a muscular response. To borrow an analogy from the 2008 financial crisis, if Thursday’s vote was something of a “Lehman moment,” then we should all wish for the next steps to resemble the fast rescue of AIG and the passing of the TARP bailout plan — in other words, a determined commitment that no more dominoes should fall. But Europe’s problems are too deep, and its leadership too fragmented, for this vigorous response to appear probable.
The project of European integration can be thought of as three experiments in the management of globalization. The first is a triumph: The single market for trade in goods and services spurs competition and efficiencies in a bloc of more than 500 million people. The second experiment is a mixed story: The commitment to free movement for students, workers and retirees across 28 countries has expanded individual freedom and prosperity but is politically unpopular. Meanwhile Europe’s third experiment is a disaster. The creation of the euro, the shared currency now used by 19 countries, was quite simply a bridge too far.

Be Prepared

Now that Sir Alan Greenspan, the former Fed Chair, has come out with his pessimistic view, "the worst he's seen in public life," it most likely a decent bet to take the other side of that trade. Greenspan mentions the 1987 debacle as if everyone's memory is as short as apparently his is.

That downturn came as the Fed was hiking rates all summer as Greenspan assumed office that August. He was just as much a part of the October meltdown as he was on his way to Dallas that fateful day to deliver a speech.

We warned you, they'll pump out more negatives about this than an honest investigation into Hiliary's background would turn up in 10 minutes. Be prepared.

During a CNBC inteview today, when discussing the historic Brexit vote outcome, Alan Greenspan unleashed a fiery sermon that could have been prepared just by reading a random selection of posts from this website, the former Fed chairman told his shocked hosts that the current period, far from the raging "Obama recovery" spun every day by adaministration propaganda appratchicks and one that prompted the Fed to unleash a ridiculous rate hike cycle in December just as the US is sliding into a recession, and is instead the "worst period" he has seen, surpassing even the infamous Black Monday in severity.
"This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

zerohedge.com/news/2016-06-24/greenspan-worst-period-i-recall-theres-nothing-it

Thursday, June 23, 2016

Overnight

 What do you know? Though far and few, wonders never cease.

They tried everything, the elitists of  the globe, the NWO thugs, rolled out their big guns, the big scaremongers, the hate crowd who masquerade as friends of the people, it's even conceivable they went farther than that, and it's looks as if the good people of England took their country back. Congratulation to those who voted to leave. You are a stout, brave lot.

They pulled out every dirty trick, even announcing earlier before a single vote had been counted that one high ranking leave official was tossing in the towel, admitting defeat, an obvious attempt to keep voters from going to the polls.These are indeed some evil, dangerous people. Be prepared now for all the horror stories about what will happen next. MSM is not to be trusted. How much you're going to suffer. We read one EU bureaucrat a few weeks ago who, in all his arrogance, said if the leave vote wins, "Leave means now!" Are you listening Mr. Cameron? You will suffer all right, suffer the pleasure of your own liberty, the choice to decide your own future, good or bad.

You should be proud of yourselves. You have just struck a mighty tocsin for liberty around the globe.There can be no greater feeling of accomplishment than that. Sleep well. You earned it.

Here;s what the WSJ had to say: Stocks in Japan suffered their worst day in five years, leading broad losses in markets across Asia while gold surged as results from the U.K.’s referendum on its European Union membership showed the country had voted to leave the trading bloc.
The Nikkei Stock Average on Friday plunged 8.2%, led down by shares in exporting companies as the Japanese yen surged. The Japanese currency reached 99 yen to the U.S. dollar, the currency’s strongest level since November 2013. The move prompted Japan’s top currency official, Masatsugu Asakawa, to say that the authorities there would consider responses as needed.
Some Japanese companies seen as highly exposed to the U.K. economy are fell particularly hard. Industrial conglomerate Hitachi was down 10%, while advertising agency Dentsu dropped 8.9% and auto maker Nissan Motor fell 8.5%.
In Hong Kong, shares dropped 4.7%, as names with exposure to the U.K. such as major banks Standard Chartered PLC and HSBC Holdings PLC took heavy hits. Each dropped close to 9%, as investors fretted about the business and economic consequences of a vote for a British exit from the EU.
A tumble in oil prices, meanwhile, knocked down energy shares across the region. That sector was off 4.1% in Australia, compared with a 2.9% fall in the broader S&P ASX 200. A rush to haven assets helped gold rise 5.9%. 


Reuters reported it this way: Britain has voted to leave the European Union, results from Thursday's landmark referendum showed, an outcome that sets the country on an uncertain path and deals the largest setback to European efforts to forge greater unity since World War Two.
World financial markets dived as nearly complete results showed a 51.8/48.2 percent split for leaving. Sterling suffered its biggest one-day fall of more than 10 percent against the dollar, hitting a 31-year low on market fears the decision will hit investment in the world's 5th largest economy.
The vote will initiate at least two years of messy divorce proceedings with the EU, raise questions over London's role as a global financial capital and put huge pressure on Prime Minister David Cameron to resign, though he pledged during the campaign to stay on whatever the result.
The euro slumped more than 3 percent against the dollar on concerns a Brexit vote will do wider economic and political damage to what will become a 27-member union. Investors poured into safe-haven assets including gold, and the yen surged. European shares were on course to open 6 to 7.5 percent lower.
There was no immediate comment from the Bank of England. Global policymakers prepared for action to stabilize markets, with Japanese Finance Minister Taro Aso promising to "respond as needed" in the currency market.
Yet there was euphoria among Britain's eurosceptic forces, claiming a victory they styled as a protest against British political leaders, big business and foreign leaders including Barack Obama who had urged Britain to stay in the bloc.
"Dare to dream that the dawn is breaking on an independent United Kingdom," said Nigel Farage, leader of the eurosceptic UK Independence Party.
"If the predictions are right, this will be a victory for real people, a victory for ordinary people, a victory for decent people ... Let June 23 go down in our history as our independence day."
He called the EU a "doomed project".
By 5.41 a.m. (0441 GMT), 93 percent of the vote had been counted, making Leave's lead impossible to reverse.
Asked if Cameron, who called the referendum in 2013 and campaigned to stay in the bloc, should resign if Britain voted for Brexit, Farage said: "Immediately."
An aide working in Cameron's office told reporters: "We're in uncharted territory... Everyone's just really tired. They haven't slept."
The United Kingdom itself now faces a threat to its survival, as Scotland voted 62 percent in favor of staying in the EU and is likely to press for a new referendum on whether to become independent after its 2014 vote to stay in the UK.
Scottish First Minister Nicola Sturgeon said Thursday's vote "makes clear that the people of Scotland see their future as part of the European Union."
Northern Ireland's largest Irish nationalist party, Sinn Fein, said the result intensified the case for a vote on whether to quit the United Kingdom.
European politicians reacted with shock. "Please tell me I'm still sleeping and this is all just a bad nightmare!" former Finnish Prime Minister Alexander Stubb tweeted.
Quitting the EU could cost Britain access to the EU's trade barrier-free single market and mean it must seek new trade accords with countries around the world. President Barack Obama says it would be at the "back of a queue" for a U.S. pact.
The EU for its part will emerge economically and politically weakened, facing the departure not only of its most free-market proponent but also a member country that wields a U.N. Security Council veto and runs a powerful army. In one go, the bloc will lose around a sixth of its total economic output.
Cameron is expected to formally report the result to his European counterparts within days and prepare negotiations for the first exit by a member state from the EU -- an exit he has said would be irreversible.
The British leader called the referendum in 2013 in a bid to head off pressure from local eurosceptics, including within his own party. Initially billed as an easy ride, the vote has now put his political future on the line. Party ally Boris Johnson, the former London mayor who became the most recognizable face of the "leave" camp, is now widely tipped to seek his job.
Opinion polls had see-sawed throughout an acrimonious four-month campaign, but the Remain camp edged ahead last week after a pro-EU member of parliament, Jo Cox, was shot and stabbed to death by a man shouting "Britain first". The attack shocked Britons and raised questions about whether the tone of the debate was fuelling intolerance and hatred.
In the end though, the pro-EU camp was powerless to stop a tide of anti-establishment feeling and disenchantment with a Europe that many Britons see as remote, bureaucratic and mired in permanent crises.
TORN APART
Britain, which joined the then European Economic Community (EEC) in 1973, has always been an ambivalent member. A  firm supporter of  free trade, tearing down internal economic barriers and expanding the EU to take in ex-communist eastern states, it opted out of joining the euro single currency or the Schengen border-free zone.
Cameron’s ruling Conservatives in particular have risked being torn apart by a slow by steady rise in euroscepticism ever since differences over Europe triggered the ousting of former Prime Minister Margaret Thatcher in 1990.
World leaders including Obama, Chinese President Xi Jinping, German Chancellor Angela Merkel, NATO and Commonwealth governments had all urged a "Remain” vote, saying Britain would be stronger and more influential in the EU than outside.
Yet the four-month campaign has been among the divisive ever waged in Britain, with accusations of lying and scare-mongering on both sides and rows on immigration which critics said at times unleashed overt racism.
It also revealed deeper splits in British society, with the pro-Brexit side drawing support from millions of voters who felt left behind by globalization and believed they saw no benefits from Britain's ethnic diversity and free-market economy.
Concerns over uncontrolled immigration, loss of sovereignty, remote rule from Brussels and a protest vote from working class northern voters appear to have trumped almost unanimous warnings of the economic perils of going it alone.
"People are concerned about how they have been treated with austerity and how their wages have been frozen for about seven years," said John McDonnell, finance spokesman for the opposition Labour Party, which had favored a Remain vote.
"A lots of people's grievances have come out and we have got to start listening to them."
Surveys on public attitudes across the EU have for years shown growing disenchantment with European integration, a project that began in the 1950s as a common market for steel and coal but which over the years offered members the chance to join up to a single currency and do away with old national borders.
Yet while it has become a feature of everyday life seen in everything from EU-sponsored student exchanges to rules on mobile telephone roaming charges, the EU lost public support over its handling of the 2009 sovereign debt crisis that inflicted painful austerity on much of the south of the continent and left many citizens in northern countries resentful at having to fund bailouts.
Right-wing British eurosceptics seized on the euro zone crisis to argue that Britain was “shackled to a corpse”.
Aside from Denmark-ruled Greenland, which left the EEC in 1985 after a row over fishing rights, Britain is the first country to leave the EU, and even EU officials say it takes the continent into uncharted territory.
EU affairs ministers and ambassadors from member states gather in Luxembourg by 10 a.m. (0800 GMT) for routine talks that will provide the first chance for many to react. A regular EU summit has been pushed back to next Tuesday and Wednesday, when Cameron may trigger Article 50 of the EU's treaty, the legal basis for a country to leave, setting in motion two years of divorce negotiations.
Even less clear at this stage is what sort of relationship Britain will seek to negotiate with the EU once it has left.
To retain access to the single market, vital for its giant financial services sector, London would have to adopt all EU regulation without having a say in its shaping, and pay a substantial contribution to Brussels coffers for market access, as Norway and Switzerland do. EU officials have said UK-based banks and financial companies would lose automatic “passport” access to sell services across Europe if Britain ceased to apply the EU principles of free movement of goods, capital, services and people.
Aside from trade, huge questions now face the millions of British expatriates who live freely elsewhere in the bloc and enjoy equal access to health and other benefits, as well as some 2 million EU citizens who live and work in Britain.
Core founding members of the EU such as France and Germany will be wary of making life too easy for Britain for fear of encouraging eurosceptics across the continent to call for referendums in their countries.
French Economy Minister Emmanuel Macron said last weekend that "when you're out, you're out", insisting Britain could expect no preferential treatment. German Finance Minister Wolfgang Schaeuble has issued similar warnings.
Both countries, whose painful post-war reconciliation formed the basis for the future union of Europe, must now deal with buoyant anti-EU parties at home, with the Alternative fuer Deutschland  in Germany and the Front National in France.







Wednesday, June 22, 2016

Overnight

Why would anyone expect anything different than it is overnight  given the expected close vote by nearly all who've been watching the Brexit drama unfold. Trading in Asia on Thursday opened mixed as investors play things close to their vests. The U.S market traded off, no surprise there.

The Nikkei was up slightly. 0.24%, while the Korean Kospt was down by 0.39%. In China the two Composites split the difference with the Shenghai market off 0.26% and the Shenzhen flat. materials helped edged the Australian ASX 200 up ever so slightly at 0.02%. The Dow shed nearly 50 points, closing at 17,780.83. Similar moves prevailed in the S&P 500 and the Nasdaq in what could in part be called the Brexit hangover.

Oil fell overnight while the UK pound moved higher to 1.48 up from 1.40 just last week, another sign that investors think Brexit stay will prevail as people shun at the last second the uncertain for the known however uncomfortable it might be. Gold fell to $1,260.36 after recently breaching the 1,300 level.

Only You Can Stop It

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It's hard to get more secretive than this. This is a nefarious story about a nefarious organization, one where on another questionable matter higher-ups at the organization were allowed to slide under their 5th Amendment rights and no one was ever really punished.

It's a matter of public record and many Americans have found out the hard way about government corruption. What's happening here is not much different from what's happening in China for those who pay attention. Dissenters or those who question are guilty until proven otherwise.

This is a clearly retributive, nefarious organization that needs more than the usual fake house cleaning offered up so that business can go on as before.

The IRS has seized entire bank accounts with no notice or due process, alleging the owners sought to avoid federal bank reporting requirements. The aforementioned pattern of banking is described as "intentionally structuring cash transactions," and they call it a crime.

This nefarious provision of the Bank Secrecy Act is purportedly targeted at drug traffickers, money launderers and terrorists, but it has swept up hundreds of innocent people—including small business owners who lost everything because they deal wholly or partly in cash.
Carole Hinders, owner of a Mexican restaurant in Iowa that only accepted cash, had her entire bank account of $33,000 seized even though she did nothing wrong. The IRS seized $63,000 from Randy Sowers, a dairy farmer in Maryland, because he was depositing under $10,000 into his bank account.
Ken Quran, the owner of a convenience store in North Carolina, had his entire bank account of $150,000 seized after working nonstop for years to build it up. His crime? Withdrawing cash from his bank account in amounts under $10,000.
But the truly shocking thing is what happened next. A group of government agents—both from the IRS and local police—came to Ken's store with an agreement already written up, under which Ken would agree to forever forfeit the money to the federal government. The agents searched his store with dogs, barred the entrance to keep out customers, and then demanded that he sign the paper. Ken initially refused, explaining that he did not read English well and did not want to sign an agreement he could not understand. Then, under compulsion—after one of the local police yelled and demanded that he sign, and after one of the IRS agents made clear that, otherwise, their next stop would be to talk to Ken's wife to pressure her—Ken agreed to sign.
Between 2007 and 2013, the IRS seized $43 million in over 600 cases where only "structuring" violations were committed, according to the Institute for Justice (IJ). The IRS abandoned this policy in 2014 after IJ put heavy pressure on the agency through lawsuits and media exposure.
But the noble public interest law firm was not done. IJ pioneered a legal mechanism, called petitions for remission, to fight for the return of seized assets from closed cases involving only structural violations.
And, amazingly, it worked. IJ filed a petition to the IRS on behalf of Ken Quran, and the agency actually gave Quran all of his money back.
This is a startling admission of wrongdoing by the feared federal agency, and a rare win for liberty.

This will continue until Americans unite to insist that it stop for once and forever.

zerohedge.com/news/2016-06-22/irs-admits-illegally-seizing-bank-accounts-agrees-give-money-back

Wax And Tax

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One man's epithets are another's stand-up comic material. The one thing you can count on is the nannycrats never bore of giving one lots of material. Here's a case in point. It's proof positives of that old saying about the only two certainties in  life--death and taxes.

The EU is studying a proposal that would count robots as people for tax purposes.
Although the proposal is deemed “too early” to implement just yet, rest assured once nannycrats get a bad idea in their heads, it never leaves. This provides yet another reason to vote in favor of Brexit.

 Please consider Europe’s Robots to Become ‘Electronic Persons’ Under Draft Plan.
Europe’s growing army of robot workers could be classed as “electronic persons” and their owners liable to paying social security for them if the European Union adopts a draft plan to address the realities of a new industrial revolution. Robots are being deployed in ever-greater numbers in factories and also taking on tasks such as personal care or surgery, 

 Fanny told Nanny:  "Don't you give that robot a chance. He might not look it, but he knows how to dance."mishtalk.com/2016/06/22/robots-to-pay-social-security-under-eu-tax-proposal/