Velocity 'Helicopter Flight Simulator dot-dot-dot . Flight
Shtimulator' suggested that Jackson Hole had signaled a hardening in US
economic policy; to prioritize domestic conditions at the expense of the
Global Economy especially in Emerging Markets. President Obama's recent
failure at G20, to create a global consensus on Syria, was further
evidence of the breakdown in global cooperation that could lead to
American unilateralism. But perhaps the recent Putin "rescue" will
forestall that (unilateralism).
Read more >>
Markets closed down, but somewhat off the
morning opening lows. Gaps that occurred during the opening in the
small caps were almost filled and the large caps still need to melt much
higher. The USD is down and the Euro is up while gold slowly sinks.
By 4 pm the averages showed up with some
green volume but not enough to make much difference in the closing
numbers. The aftermarket did some melting up but never reached the 2:30
Securities and Exchange Commission today charged a New Jersey-based
audit firm and one of its founding partners for their roles in the
botched audits of a China-based company that failed to disclose related
party transactions by its CEO and others. An SEC investigation found
that Patrizio & Zhao LLC (P&Z) and Xinggeng (John) Zhao, who is
head of the firm's China practice, failed to comply with U.S. auditing
standards and exercise appropriate professional care and skepticism in
conducting audits and interim reviews for Keyuan Petrochemicals, which
was charged with accounting and disclosure
violations by the SEC earlier this year.
Large caps have recovered almost half of
this mornings drop and the small caps have recovered 90% of their fall.
Investors are showing signs of renewed faith that the government
shutdown crisis is going to be solved by midnight tonight. Volume is
tapering off somewhat as the buying trend is melting up.
By noon the averages were starting to
show signs of weakness and perhaps we have seen the highs for the day.
It wouldn't all that much to send the averages into a tail-spin and test
the morning lows.
Israeli Prime Minister's on a mission to thwart Iran's recent efforts
to unfreeze its relations with the West. Benjamin Netanyahu claims
Tehrans sweet talk is just a trick to buy the country nuclear programme
On Sunday the SP500 futures gaped down
10.27 points to bad our crystal balls didn't alert us, would have been a
nice scalp. This morning's premarket was still down some 85% and sank
further on the market's opening.
By the 15 minute mark the averages had
recovered +0.05% from the initial opening lows and began to sea-saw back
and forth on relatively moderate to heavy volume as investors are
contemplating the odds of a government shutdown tonight at midnight.
By 10 am the sinking ship was bobbing in
the sea of red volume as any remaining investors on board were deciding
what their prospects of survival were.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when
Internet sales rendered big-box retailers obsolete. Now an industry 99% of
us use daily is set to implode... And 3 established companies are perfectly
positioned to take advantage of this game-changing economic shift.
by James Narron and David Skeie - Liberty Street Economics, Federal Reserve Bank of New York
In the late 1600s, England operated a
bi-metallic monetary system of high-value gold coins and lower-value
silver coins. In the early 1690s, however, the market price of silver
began to rise at a time when the mint price of gold was higher than the
market price. Thus, gold bullion was flowing to the mint while silver
coins were flowing to the commodity markets. By 1695, nearly half of the
silver specie was missing from coin in circulation in England as coins
were 'clipped' (shaved) with the result that their face value no longer
reflected the metal content. Ironically, low-weight coin was still
accepted for tax payments. In this post, we recount England's efforts to
remedy the 'ill state of the coin of the kingdom' during the re-coinage
regulation and low interest rates are driving lending from the
regulated commercial banking system into the unregulated shadow banking
system. The shadow banks, although free of government regulation, are
propped up by a hidden government guarantee in the form of safe harbor
status under the 2005 Bankruptcy Reform Act pushed through by Wall
Street. The result is to create perverse incentives for the financial
system to self-destruct.
Econintersect: The final HSBC PMI for China in September has come in at 50.2, up from
50.1 in August. Because the reading is above 50 (the dividing line
between expansion and contraction) the result indicates that China's
manufacturing is growing, but just barely. The reading is both
disappointing and a surprise since it is a fill point below last week's
"flash" PMI (preliminary estimate). The final reading is usually with
0.2 or so of the preliminary number.
While the markets continue to digest the
recent move off the September lows with the SPX doing so via a pullback
(price) and the NASDAQ Comp. doing so sideways (time) many market
leading stocks are trading to the beat of their own drum hence its a
market of stocks.
The sequestration regime which began earlier this year will cut $1.3
trillion from federal expenditures over a ten-year period. But the
effects are net felt equally across the nation. One of the hardest hit
counties is Los Alamos NM, home to the Los Alamos National Laboratory.
Los Alamos will see an impact of $6,358.97 per capita. Los Angeles County in California will see an impact of only $216.27 per capita.
by Gerald A. Carlino and Jake K. Carr - Business Review, Federal Reserve Bank of Philadelphia
The United States is home to some of the
most innovative companies in the world, such as Apple, Facebook, and
Google, to name a few. Inventive activity depends on research and
development, and R&D depends on, among other things, the exchange of
ideas among individuals. People's physical proximity is a key
ingredient in the innovation process.
Recently, the Congress has expressed
renewed interest in the cost of the federal response to major disasters.
Some of that interest may stem from the Budget Control Act of 2011,
which allows some spending for disasters above the limits on
discretionary appropriations without triggering sequestration (a
cancellation of funding that Congress has previously provided). (CBO
recently estimated that this allowance for disaster-related funding,
which is based on the 10-year average of such funding excluding the
highest and lowest years, is $12.1 billion for fiscal year 2014.)
by Wenli Li - Business Review, Federal Reserve Bank of Philadelphia
Reports in the popular press and
policymakers' concerns about student loans have greatly intensified in
recent years because of rising student loan balances and defaults. Even
greater cause for concern arose as student loans outstanding passed
credit card debt to become the single largest nonmortgage household debt
in 2012. Worries about the risk of massive default have even prompted a
comparison with the subprime mortgage crisis.
Monetary Policy Week in Review - Sep
23-27, 2013: Israel, Hungary cut, Fed move sparks criticism of
by Peter Nielsen, Central Bank News
Last week the central banks of Israel and
Hungary cut their policy rates while 10 other banks maintained rates as
the U.S. Federal Reserve's surprise decision to delay tapering its
asset purchases reverberated through global markets amid criticism of
its communication skills and forward guidance.
Legendary hedge fund manager Ray Dalio has developed a simple three
part template to describe the "economy machine". This can be reviewed in
the 31 minute minute video selected for this week.
GTA V reached the billion-dollar revenue
milestone faster than any other entertainment product in history. It
took the game only three days to achieve what Avatar, no less than the
most successful movie of all times, did in 17 days.
an understanding that talent is a source of competitive advantage - and
the fact that performance management programs have been an established
business practice for more than 50 years - organizations today still
struggle to establish effective programs.
or if you prefer to send a check or money order, Information Clearing House, PO Box 365 Imperial Beach, CA 91933. USA.
Thank you. Your help is greatly appreciated. Tom Feeley
"Wars will be stopped only when soldiers refuse to fight, when workers refuse to load weapons onto ships and aircraft, when people boycott the economic outposts of Empire that are strung across the globe. " - Arundhati Roy, Public Power in the Age of Empire
"Come you masters of war You that build all the guns You that build the death planes You that build the big bombs You that hide behind walls You that hide behind desks I just want you to know I can see through your masks" - Bob Dylan
"We used to wonder where war lived, what it was that made it so vile. And now we realize that we know where it lives...inside ourselves." - Albert Camus
Lavrov Says Syrias Rebels Have Chemical Arms, Proof Mounting
"We are certain that militants have more than once attempted such provocations. Therefore, the direct sponsors of opposition forces, who offer them support, must also see to it that they give up on further provocations," the minister said.
'Foreign Terrorists' Fighting in Syria - Foreign Minister
In a speech to the UN General Assembly, Walid Muallem compared this "invasion" to the 9/11 attacks on New York. "terrorists from more than 83 countries" are killing soldiers and civilians across the country.
Was Obama Planning on Striking Syria or Working to Gain Traction in Talks With Iran?
By Mahdi Darius NAZEMROAYA
Syria is essentially being disarmed of its strategic deterrent against Israel's biological, chemical, and nuclear weapons, which would figure importantly in a Syrian war against Israel or a wider US-Iranian regional war.
There is one difference between China, the police state I lived in and reported on back in the 1990s, and the US police state of today. In China, everyone knows they are living in a totalitarian society.
A series of car bombs in mostly Shiite neighborhoods of the Iraqi capital, Baghdad, have claimed over 50 lives, leaving over 100 people injured. Officials are blaming Al-Qaeda for the string of attacks, but no group has claimed responsibility yet.
Syria govt 'ready to go to Geneva for dialogue, not to hand over power to anyone' - FM:
The Syrian government is ready for peace talks with the opposition, but the legitimacy of President Assad "isn't up for discussion," Syrian FM Walid Muallem said. It comes as the Syrian opposition remains undecided on who will represent them at Geneva.
Chemical weapons officials say coordination with Syrian government has been 'efficient':
Syria's government has been "businesslike and efficient" ahead of meetings this week to lay the groundwork for the destruction of the country's chemical weapons, officials charged with overseeing the effort.
Iran behind anti-WMD rider in chemical watchdog's decision on Syria - Lavrov:
A small but far reaching clause in the chemical watchdog's decision on Syria that urges all non-signatories of the Chemical Weapons Convention to join the treaty was actually proposed by Iran - and supported by the US - Russian FM Sergey Lavrov revealed.
Pakistan explosion: Peshawar market blast toll rises to 42:
It was the third deadly blast to hit the city in a week. Last weekend suicide blasts killed at least 81 at a church in Peshawar and on Friday, 19 people died when a bus carrying civil servants was attacked.
It was the second strike in less than 24 hours in a violent area with a long history of U.S. drone strikes and militant activity. At least three alleged militants were killed Sunday in a drone attack on the Dargamandi area in North Waziristan, also known as a bastion of Taliban and al-Qaeda linked militants.
Pakistan condemns latest drone strike in North Waziristan:
The Ministry of Foreign Affairs released a statement denouncing the US strike and called for the US to bring a halt to the program. "These unilateral strikes are a violation of Pakistan's sovereignty and territorial integrity." a statement released on the Ministry of Foreign Affairs' website said.
Lawless Libya: Armed men shut down Libya gas facility in Berber region:
Armed men have shut down a gas facility in the mountainous western region of the country, predominantly inhabited by members of Libya's Berber minority - also called Amazigh. The ministry of electricity has warned that the latest closure will lead to severe power cuts.
Narcoland: Journalist Braves Death Threats to Reveal Ties Between Mexican Government & Drug Cartels: Video -
Anabel Hernández has been described as one of the most courageous journalists in Mexico. In 2010, she published a groundbreaking book linking top Mexican governmental officials to the world's most powerful drug cartels.
Vice Admiral Is Suspended in Gambling Investigation:
A vice admiral who is second in command at the United States Strategic Command, which oversees nuclear war-fighting forces for the military, has been suspended amid an investigation into his possible involvement in illegal gambling, officials said on Saturday.
Senate set to reject Obamacare delay as government shutdown looms:
The move tosses a political hot potato back to Republican House Speaker John Boehner, leaving him a choice of whether to accept it and keep government agencies funded or try another move to rein in President Barack Obama's signature healthcare law.
If Republicans Want To Shut Down Washington, They'll Have To Ask China's Permission First:
In their never-say-die efforts to defeat Obamacare, Tea Party Republicans brought the federal government a giant step closer to shutdown last night. What they seem not to have considered is how America's foreign creditors will react.
House Republicans Target Contraception In Last-Minute Spending Bill:
Planned Parenthood Federation of America Executive Vice President Dawn Laguens called the move "desperate, misguided, and extreme" in a statement. "The country wants Congress to focus on jobs and the economy, not on pushing an extreme agenda against birth control," said Laguens.