Archive For: April 2014

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Why The War Party Is Playing With Fire: Much Of Putin's Military-Industrial Complex Is In Eastern Ukraine!

It is well known that much of the Ukraine's heavy industry is concentrated in the eastern regions of the country ......it turns out that there is something else that makes the Ukraine's East especially important.... when the Ukraine split from the Soviet Union, it took a big chunk of its defense industry with it....

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Deja Vu All Over Again: When Housing Next Goes South, Freddie & Fannie Will Need Another $190 Billion Bailout

...the news that when (not if) the US economy succumbs to a severe economic downturn Fannie and Freddie would require another taxpayer funded bailout, one of $190 billion or even more than the first $187.5 billion-funded nationalization of the GSEs is hardly surprising.....

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Japan's 10th Round Of QE: Still A Flat-Out Failure

The interest in the plight of the Japanese and “their” economy is not just one of morbid curiosity, but of high relevance and perhaps even a glimpse of the future. It is both a cautionary tale about the command economy and, at the same time, a warning about such apathy derived from the failure to [...]

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China's Fractures Widen: Q1 Growth Hits Skids In Heavy Industry Provinces

First-quarter growth in almost all Chinese provinces was below their annual targets, according to local media, with the most concerning data from resource-dependent and manufacturing-heavy provinces suffered the sharpest economic slowdown in the first quarter as the government pushed to tackle excessive factory capacity and pollution....

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Fed fueling century's ‘greatest bubble’: Stockman

The Fed is "a posse of academic zealots and unreconstructed Keynesians who think debt is the magic elixir, and they won't stop printing money and putting their foot on the floorboard until they really blow something up," Stockman said.

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Inside The "Low-flation" Myth: A Disquisition On Inflation Seen And Not Seen---Part 1

So herein an essay on the overwhelming evidence of inflation during the decade long era in which the central bankers have been braying about "deflation". Herein, too, some startling evidence of the complicity of the government statistical mills in using the inflation that is not seen (i.e. "imputed") to dilute and obscure the inflation that is seen (i.e. utility bills)...

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The Deformations Of QE: Bank Trading Desks Fattened; Failing Business Models Extended

The primary problem with cyclicality is that by keeping money losers afloat it only congregates the eventual defaults and retrenchments together into one big event rather than spread out over many months, even years. There is no doubt that ZIRP and the perpetuation of “emergency” QE force some “reach for yield” into exactly this kind of procyclical behavior....

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Well, I Did Tell You So: The Texas Gas Bubble Massacre (TXU) Was Bankrupt From Day One

The wildest speculators in Leo Melamed’s pork-belly rings at the Chicago Merc could never have dreamed up a commodity trade as fantastical as that underlying the $47 billion LBO of TXU Corporation. It was basically a bet on a truly aberrational price gap between cheap coal and expensive natural gas—a “fuels arb”—that couldn’t possibly last. So the largest LBO in history was the ultimate folly of bubble finance....

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Abenomics At Work: Japan's April Output And Orders Fall Sharply

The Markit/JMMA Purchasing Managers’ Index™ (PMI™ ) posted at 49.4 in April, down from 53.9 in March. This was the first time in 14 months that the Japanese manufacturing sector saw a deterioration in business conditions. Output fell to the greatest extent seen since December 2012.

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A Primer On Tax Breaks And Loopholes: Why Rates Are High And The K Street Lobbies Prosper

For Fiscal Year 2014, the Office of Management and Budget projects $148 billion in corporate expenditures and $1.036 trillion in individual tax expenditures for nearly $1.2 trillion in total....

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