The "Meaning of Cory Remsburg" Isn't What Obama and His Supporters Think It Is.

In a
response to the State of the Union Address published at
Time.com
, I concluded that Barack Obama’s invocation of injured
soldier Cory Remsburg was “morally dubious” because the president
elided “any responsibility for placing the young man in
harm’s way.”

“Patriotism is the last refuge to which a scoundrel clings,” Bob
Dylan once
sang
, updating Samuel Johnson’s dark maxim. Obama’s gesture in
the State of the Union will only accelerate the cynicism that
already understandably dominates public opinion. There is no more
serious decision that a government makes than to send its citizens
a war. And there is nothing more disturbing than a president using
soldiers’ sacrifices as a way of selling a grab-bag of domestic
policy agenda items.


Read the whole thing.

Over the past couple of days, reactions to the use of Remsburg
in the speech has emerged as something of a litmus test toward
Obama, the military, and foreign policy. At Time.com’s
comm
ents
section
, this is very much on display, where responses from
Obama supporters and boosters of the military responded favorably
and libertarians reacted negatively to the invocation of
Remsburg.

For sheer moral obtuseness in the service of Obama fanboyism,
check out The New Yorker’s John Cassidy
who writes
,

Obama’s underlying message has been that too much of what
happens in Washington is an insiders’ game that ignores, and often
tramples upon, the wishes and interests of ordinary
Americans….

By inviting Remsburg…Obama was taking part in what’s now a
traditional ritual for speech-givers. But he was also trying to
bridge the gaping chasm between politics and political
decision-making as experienced by its practitioners in the nation’s
capital and by the grunts out there in the factories, offices, and
Army battalions.

He was also invoking the concept of public service, which, in
Washington these days, is routinely subjugated to partisan
advantage. And, finally, he was saying that we can do better, and
we know we can—just look at this young man.

This, Cassidy argues, is “the
meaning of Cory Remsburg
.” Equating sending men and women to
war with “grunts out there in the factories” and offices?” Or
public service more broadly? Are you freaking kidding, man? That’s
a pretty weird interpretation. Given that Obama has failed at every
turn to explain precisely what the U.S.’s goals were in Iraq and
Afghanistan especially (where Remsburg was injured and where Obama
tripled troops during his first year in office), I’d like to offer
a different and I think more accurate interpretation, one
unburdened with trying to constantly say good things about the
president.

Obama, just like Bush before him, sends a guy – hundreds of
thousands, actually – to war where they put their bodies and lives
on the line. Obama, just like Bush before him, doesn’t bother to
articulate the pressing national security interest in sending
soldiers to the far corners of the globe. He doesn’t give
yardsticks for success or failure or anything. Instead, he stumbles
along: War is war, you know, and it’s hell – just look at this guy
in the balcony. Now please clap for him – me, really – and good
night America. The meaning of Cory Remsburg? It’s that Obama and
Washington is more than happy to use citizens for whatever
political purpose they deem worthy of pursuing. And then when those
same citizens return from a tour of duty, politicians are still
ready, willing, and able to use them again, without serious regard
for their well-being. Contra Cassidy, “the meaning” here isn’t
about public service, it’s about the government’s grotesque
exploitation of its citizens.

What a disturbing moment and what a way to end a speech
otherwise dedicated to forgettable gestures such as the
“MyRa.”
 Obama should be ashamed of himself, especially
when you factor in that Obama’s Veterans Administration is
currently backlogged on 63 percent of benefits claims made by
returning soldiers:

Among talking heads, one of the most interesting discussions
came on Fox News’ The Five, where the hosts grappled with their
conflicting feelings about Obama (generally negative) and the
military (generally positive). Along the way, Greg Gutfeld
mentioned my piece in passing and averred (in
Mediaite’s gloss
):

“This heroic man was somewhat disconnected from the limp litany
of grad school garbage that came before, and it felt like it was
placed at the end of the speech to armor against scrutiny.” He
added, “Everyone walks away thinking about this amazing hero and
not how lame the president’s speech was.”

“It was really moving at the end, but I felt like I was being
used,” Gutfeld said.

I suspect that more and more people, especially upon a couple of
days’ reflection will feel that way.

Watch the segment below:

from Hit & Run http://ift.tt/MzKuc4
via IFTTT

The “Meaning of Cory Remsburg” Isn’t What Obama and His Supporters Think It Is.

In a
response to the State of the Union Address published at
Time.com
, I concluded that Barack Obama’s invocation of injured
soldier Cory Remsburg was “morally dubious” because the president
elided “any responsibility for placing the young man in
harm’s way.”

“Patriotism is the last refuge to which a scoundrel clings,” Bob
Dylan once
sang
, updating Samuel Johnson’s dark maxim. Obama’s gesture in
the State of the Union will only accelerate the cynicism that
already understandably dominates public opinion. There is no more
serious decision that a government makes than to send its citizens
a war. And there is nothing more disturbing than a president using
soldiers’ sacrifices as a way of selling a grab-bag of domestic
policy agenda items.


Read the whole thing.

Over the past couple of days, reactions to the use of Remsburg
in the speech has emerged as something of a litmus test toward
Obama, the military, and foreign policy. At Time.com’s
comm
ents
section
, this is very much on display, where responses from
Obama supporters and boosters of the military responded favorably
and libertarians reacted negatively to the invocation of
Remsburg.

For sheer moral obtuseness in the service of Obama fanboyism,
check out The New Yorker’s John Cassidy
who writes
,

Obama’s underlying message has been that too much of what
happens in Washington is an insiders’ game that ignores, and often
tramples upon, the wishes and interests of ordinary
Americans….

By inviting Remsburg…Obama was taking part in what’s now a
traditional ritual for speech-givers. But he was also trying to
bridge the gaping chasm between politics and political
decision-making as experienced by its practitioners in the nation’s
capital and by the grunts out there in the factories, offices, and
Army battalions.

He was also invoking the concept of public service, which, in
Washington these days, is routinely subjugated to partisan
advantage. And, finally, he was saying that we can do better, and
we know we can—just look at this young man.

This, Cassidy argues, is “the
meaning of Cory Remsburg
.” Equating sending men and women to
war with “grunts out there in the factories” and offices?” Or
public service more broadly? Are you freaking kidding, man? That’s
a pretty weird interpretation. Given that Obama has failed at every
turn to explain precisely what the U.S.’s goals were in Iraq and
Afghanistan especially (where Remsburg was injured and where Obama
tripled troops during his first year in office), I’d like to offer
a different and I think more accurate interpretation, one
unburdened with trying to constantly say good things about the
president.

Obama, just like Bush before him, sends a guy – hundreds of
thousands, actually – to war where they put their bodies and lives
on the line. Obama, just like Bush before him, doesn’t bother to
articulate the pressing national security interest in sending
soldiers to the far corners of the globe. He doesn’t give
yardsticks for success or failure or anything. Instead, he stumbles
along: War is war, you know, and it’s hell – just look at this guy
in the balcony. Now please clap for him – me, really – and good
night America. The meaning of Cory Remsburg? It’s that Obama and
Washington is more than happy to use citizens for whatever
political purpose they deem worthy of pursuing. And then when those
same citizens return from a tour of duty, politicians are still
ready, willing, and able to use them again, without serious regard
for their well-being. Contra Cassidy, “the meaning” here isn’t
about public service, it’s about the government’s grotesque
exploitation of its citizens.

What a disturbing moment and what a way to end a speech
otherwise dedicated to forgettable gestures such as the
“MyRa.”
 Obama should be ashamed of himself, especially
when you factor in that Obama’s Veterans Administration is
currently backlogged on 63 percent of benefits claims made by
returning soldiers:

Among talking heads, one of the most interesting discussions
came on Fox News’ The Five, where the hosts grappled with their
conflicting feelings about Obama (generally negative) and the
military (generally positive). Along the way, Greg Gutfeld
mentioned my piece in passing and averred (in
Mediaite’s gloss
):

“This heroic man was somewhat disconnected from the limp litany
of grad school garbage that came before, and it felt like it was
placed at the end of the speech to armor against scrutiny.” He
added, “Everyone walks away thinking about this amazing hero and
not how lame the president’s speech was.”

“It was really moving at the end, but I felt like I was being
used,” Gutfeld said.

I suspect that more and more people, especially upon a couple of
days’ reflection will feel that way.

Watch the segment below:

from Hit & Run http://ift.tt/MzKuc4
via IFTTT

Housing Bubble 2.0: "More Flipping, Bigger Profits, In Less Time" As 156,862 Homes Flipped In 2013

Late 2013 pending home sales may have been horrible, and were blamed on the weather (though as even Goldman notes “The broad-based declines by region suggest that colder-than-average weather was likely not the primary driver, given slightly warmer-than-average temperatures on the Pacific coast in December”) , but it appears the weather had zero adverse impact on that other, most pernicious home “selling” activity: flipping.

The topic of home flipping is not new here (“Flip That House” In These Bubbling Cities, Housing Bubble 2.0 Edition: “25 Markets Where Flipping Homes Is Most Profitable“, etc) – indeed that best-known flashback of the last housing bubble is easily one of the best indications just how fragile the current housing bubble truly is as investors gobble up real estate not with the intention of keeping it but merely to sell to the next greater fool, in the process setting marginal prices based purely on the availability of cheap money, money which has now been tapered by $20 billion in the past two months. However, to get the full picture on just how pervasive “house flipping” has become, we go to the source, RealtyTrac, which has just released its 2013 summary of this troubling trend.

In summary:

  • 156,862 single family home flips — where a home is purchased and subsequently sold again within six months — in 2013, up 16 percent from 2012 and up 114 percent from 2011.
  • Homes flipped in 2013 accounted for 4.6 percent of all U.S. single family home sales during the year, up from 4.2 percent in 2012 and up from 2.6 percent in 2011

Why are flippers flipping? Simple: they make a killing:

The average gross profit for a home flip — the difference between the flipped price and the price the flipper purchased the property for — was $58,081 for all U.S. homes flipped in 2013, up from an average gross profit of $45,759 in 2012. The average gross profit for homes flipped in the fourth quarter was $62,761, up from $52,746 in the fourth quarter of 2012.

Who is doing the flipping? Why the uber-rich of course, selling hot potatoes to each other, and betting the momentum continues:

  • The biggest increases in flipping nationwide occurred on homes with a flipped price of $400,000 or more. Although flipping increased across all price ranges, flips on homes with a flipped sale price above $400,000 increased 36 percent from 2012, while flips on homes with a flipped sale price at or below $400,000 increased 17 percent from 2012.

However, now that the bubble has likely burst, flipping is dlowing down:

  • Flips accounted for 3.8 percent of all sales in the fourth quarter, down slightly from 3.9 percent of all sales in the third quarter and down from 7.1 percent of all sales in the fourth quarter of 2012 — the highest percentage of sales represented by flips in a single quarter since RealtyTrac began tracking flipping data in the first quarter of 2011

And visually:

More from the full flipper report by RealtyTrac:

The average time to complete a flip nationwide was 84 days in 2013, down from 86 days in 2012 and down from 100 days in 2011.

“Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase,” said Daren Blomquist, vice president of RealtyTrac. “For the year 21 percent of all properties flipped were purchased out of foreclosure, but that is down from 27 percent in 2012 and 32 percent in 2011. Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”

Major metro areas with big increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md. (up 88 percent), Atlanta (up 79 percent), Richmond, Va., (up 57 percent), Washington, D.C. (up 52 percent) and Detroit (up 51 percent).

Major markets with big decreases in home flipping in 2013 compared to 2012 included Philadelphia (down 43 percent), Phoenix (down 32 percent), Tampa (down 17 percent), Houston (down 17 percent), Denver (down 15 percent), Minneapolis (down 9 percent), and Sacramento (down 5 percent).

 

Broker perspectives

“Investors have not lost interest in purchasing and flipping homes. In fact, now that we are seeing home price appreciation they are more interested than ever,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, covering the Oklahoma City and Tulsa, Okla., markets.  “The challenge for many would-be flippers in our markets is a shortage of available inventory to flip, as evidenced by the decrease in the number of homes flipped in both Tulsa and Oklahoma City in 2013 compared to 2012.”

“New Hampshire home prices did not depreciate as much as other sections of the country, so we never experienced a tremendous amount of distressed inventory, which makes it difficult for people to find inexpensive properties they can flip. So it follows that gross flipping profits have fallen in our market compared to a year ago,” said Steve McGuire, vice president of business development at Berkshire Hathaway HomeServices Verani Realty, covering the Manchester, N.H., market.  “When considering whether or not to flip a home it’s also important to note that house flipping is not for the faint of heart, because there are so many variables that could affect the sales transaction, price and profit.”

“The Denver housing market is still experiencing record-low inventory levels, which causes the best potential flip properties to be few and far between,” said Chad Ochsner, owner of RE/MAX Alliance covering the Denver and Boulder, Colo., markets.  “We have seen a resurgence of opportunities for fix-and-flips in the Boulder market due to a strong increase in home price appreciation, but the distressed home market has dropped by about half making it a challenge to find the right property.”

“February and March can be a great time to buy a fix and flip home to realize the spike in homes values that usually occurs during the spring and early summer buying season,” he added.


    



via Zero Hedge http://ift.tt/1bagvgn Tyler Durden

Housing Bubble 2.0: “More Flipping, Bigger Profits, In Less Time” As 156,862 Homes Flipped In 2013

Late 2013 pending home sales may have been horrible, and were blamed on the weather (though as even Goldman notes “The broad-based declines by region suggest that colder-than-average weather was likely not the primary driver, given slightly warmer-than-average temperatures on the Pacific coast in December”) , but it appears the weather had zero adverse impact on that other, most pernicious home “selling” activity: flipping.

The topic of home flipping is not new here (“Flip That House” In These Bubbling Cities, Housing Bubble 2.0 Edition: “25 Markets Where Flipping Homes Is Most Profitable“, etc) – indeed that best-known flashback of the last housing bubble is easily one of the best indications just how fragile the current housing bubble truly is as investors gobble up real estate not with the intention of keeping it but merely to sell to the next greater fool, in the process setting marginal prices based purely on the availability of cheap money, money which has now been tapered by $20 billion in the past two months. However, to get the full picture on just how pervasive “house flipping” has become, we go to the source, RealtyTrac, which has just released its 2013 summary of this troubling trend.

In summary:

  • 156,862 single family home flips — where a home is purchased and subsequently sold again within six months — in 2013, up 16 percent from 2012 and up 114 percent from 2011.
  • Homes flipped in 2013 accounted for 4.6 percent of all U.S. single family home sales during the year, up from 4.2 percent in 2012 and up from 2.6 percent in 2011

Why are flippers flipping? Simple: they make a killing:

The average gross profit for a home flip — the difference between the flipped price and the price the flipper purchased the property for — was $58,081 for all U.S. homes flipped in 2013, up from an average gross profit of $45,759 in 2012. The average gross profit for homes flipped in the fourth quarter was $62,761, up from $52,746 in the fourth quarter of 2012.

Who is doing the flipping? Why the uber-rich of course, selling hot potatoes to each other, and betting the momentum continues:

  • The biggest increases in flipping nationwide occurred on homes with a flipped price of $400,000 or more. Although flipping increased across all price ranges, flips on homes with a flipped sale price above $400,000 increased 36 percent from 2012, while flips on homes with a flipped sale price at or below $400,000 increased 17 percent from 2012.

However, now that the bubble has likely burst, flipping is dlowing down:

  • Flips accounted for 3.8 percent of all sales in the fourth quarter, down slightly from 3.9 percent of all sales in the third quarter and down from 7.1 percent of all sales in the fourth quarter of 2012 — the highest percentage of sales represented by flips in a single quarter since RealtyTrac began tracking flipping data in the first quarter of 2011

And visually:

More from the full flipper report by RealtyTrac:

The average time to complete a flip nationwide was 84 days in 2013, down from 86 days in 2012 and down from 100 days in 2011.

“Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase,” said Daren Blomquist, vice president of RealtyTrac. “For the year 21 percent of all properties flipped were purchased out of foreclosure, but that is down from 27 percent in 2012 and 32 percent in 2011. Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”

Major metro areas with big increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md. (up 88 percent), Atlanta (up 79 percent), Richmond, Va., (up 57 percent), Washington, D.C. (up 52 percent) and Detroit (up 51 percent).

Major markets with big decreases in home flipping in 2013 compared to 2012 included Philadelphia (down 43 percent), Phoenix (down 32 percent), Tampa (down 17 percent), Houston (down 17 percent), Denver (down 15 percent), Minneapolis (down 9 percent), and Sacramento (down 5 percent).

 

Broker perspectives

“Investors have not lost interest in purchasing and flipping homes. In fact, now that we are seeing home price appreciation they are more interested than ever,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, covering the Oklahoma City and Tulsa, Okla., markets.  “The challenge for many would-be flippers in our markets is a shortage of available inventory to flip, as evidenced by the decrease in the number of homes flipped in both Tulsa and Oklahoma City in 2013 compared to 2012.”

“New Hampshire home prices did not depreciate as much as other sections of the country, so we never experienced a tremendous amount of distressed inventory, which makes it difficult for people to find inexpensive properties they can flip. So it follows that gross flipping profits have fallen in our market compared to a year ago,” said Steve McGuire, vice president of business development at Berkshire Hathaway HomeServices Verani Realty, covering the Manchester, N.H., market.  “When considering whether or not to flip a home it’s also important to note that house flipping is not for the faint of heart, because there are so many variables that could affect the sales transaction, price and profit.”

“The Denver housing market is still experiencing record-low inventory levels, which causes the best potential flip properties to be few and far between,” said Chad Ochsner, owner of RE/MAX Alliance covering the Denver and Boulder, Colo., markets.  “We have seen a resurgence of opportunities for fix-and-flips in the Boulder market due to a strong increase in home price appreciation, but the distressed home market has dropped by about half making it a challenge to find the right property.”

“February and March can be a great time to buy a fix and flip home to realize the spike in homes values that usually occurs during the spring and early summer buying season,” he added.


    



via Zero Hedge http://ift.tt/1bagvgn Tyler Durden

It’s Not Just MSNBC Making Flip Assumptions About Non-Liberal Racism

Last night, the official Twitter feed of MSNBC used a Cheerios
Super Bowl commercial to make a crack about non-lefties being
uncomfortable with race-mixing:

Maybe! |||

After an eruption of outrage on Twitter, including a volley of
colorful family snapshots under the hashtag
#MyRightWingBiracialFamily
, MSNBC online chief Richard Wolffe
withdrew
the Tweet
:  

The Cheerios tweet from @msnbc was dumb, offensive and
we’ve taken it down. That’s not who we are at msnbc.

Sending out an S.O.S. |||The “that’s not who we are” claim generated a
flurry of
LOLs
, and not just from conservatives. New York
magazine put the issue succinctly in a headline: “MSNBC
Is Very Sorry for Suggesting Conservatives Are Racist
(Again).

But making broad and essentially pejorative generalizations
about giant swaths of non-Democrats is hardly the exclusive domain
of the racist-chasers at MSNBC and
Salon.com
. Journalistic outlets at the highest levels have been
making non-jokey versions of the same accusation throughout the
Obama presidency, ever since the twin ascension in 2009
of the Tea Party and opposition to the Affordable Care Act.

For an example, check out this passage in New Yorker
Editor David Remnick’s extraordinarily long and often insightful
recent
profile
of the president.

In the electoral realm, ironically, the country may be more
racially divided than it has been in a generation. Obama lost among
white voters in 2012 by a margin greater than any victor in
American history. The popular opposition to the Administration
comes largely from older whites who feel threatened,
underemployed, overlooked, and disdained in a globalized economy
and in an increasingly diverse country
. Obama’s drop in the
polls in 2013 was especially grave among white voters.

Where's that confounded bridge? |||Italics mine, to underscore what one of the
nation’s most decorated journalists felt zero need to substantiate
in a 16,000-word article. Do older white voters really feel more
“threatened” and “disdained” by a “globalized economy” and
“increasingly diverse country” than other age and
ethnic/pigmentation cohorts? I’m sure there’s plenty of interesting

poll data
out there, but Remnick (a 55-year-old white guy,
FWIW) doesn’t need to cite any: He knows it’s true, his readers
know it’s true, and the only real question is how much you can
respectably
pin
opposition to this twice-elected
black president on racism.

This isn’t just bad journalism, it’s bad tolerance. Attributing
a single set of personality traits to scores of millions of people
whose only commonality is age and race is the opposite of judging
people not by the color of their skin, but by the content of their
character. It’s also a cheap way to wave off the substance of
anti-Obama criticism—why bother figuring out why a majority of
Americans have
consistently disliked
the flawed
Affordable Care Act
when you can just roll your eyes and assert
that the real reason is
white anxiety and worse
? There is nothing tolerant about
assuming that those who have different ideas than you about the
size and scope of government are motivated largely by base ethnic
tribalism.

MSNBC, on whose shows I have
happily participated
, engages daily in the othering
business, of making conservatism itself (and sometimes
libertarianism, and other non-Progressive ideological strains) a
disreputable condition, explicable in terms of pathology. That this
is done in the name of tolerance and sensitivity to punitive
stereotypes is one of the ironies of our age.

To his credit, Barack Obama himself seems to have a more nuanced
understanding of race and his own popularity than many of his
supporters and interlocutors. Here he is in the Remnick piece:

“There’s no doubt that there’s some folks who just really
dislike me because they don’t like the idea of a black President,”
Obama said. “Now, the flip side of it is there are some black folks
and maybe some white folks who really like me and give me the
benefit of the doubt precisely because I’m a black President.”
[…]

“There is a historic connection between some of the arguments
that we have politically and the history of race in our country,
and sometimes it’s hard to disentangle those issues,” he went on.
“You can be somebody who, for very legitimate reasons, worries
about the power of the federal government—that it’s distant, that
it’s bureaucratic, that it’s not accountable—and as a consequence
you think that more power should reside in the hands of state
governments. But what’s also true, obviously, is that philosophy is
wrapped up in the history of states’ rights in the context of the
civil-rights movement and the Civil War and Calhoun. There’s a
pretty long history there. And so I think it’s important for
progressives not to dismiss out of hand arguments against my
Presidency or the Democratic Party or Bill Clinton or anybody just
because there’s some overlap between those criticisms and the
criticisms that traditionally were directed against those who were
trying to bring about greater equality for African-Americans. The
flip side is I think it’s important for conservatives to recognize
and answer some of the problems that are posed by that history, so
that they understand if I am concerned about leaving it up to
states to expand Medicaid that it may not simply be because I am
this power-hungry guy in Washington who wants to crush states’
rights but, rather, because we are one country and I think it is
going to be important for the entire country to make sure that poor
folks in Mississippi and not just Massachusetts are healthy.”

There is plenty to disagree with here—not least of which is
Obama’s asymmetrical desire to have federalists answer for racism
while
Progressivism’s nasty history of same
gets a pass, and also his
inability to process the substance of anti-Medicaid complaints. But
the president’s broad framing offers the modern left a useful
alternative for talking about race in 2014 America. Namely, that
it’s complicated, and that reducing entire population
blocs to caricatures does not necessarily improve the
conversation.

from Hit & Run http://ift.tt/Mlm3yv
via IFTTT

Presenting the latest country to lose confidence in the dollar….

zimdollars 150x150 Presenting the latest country to lose confidence in the dollar....

January 30, 2014
Sovereign Valley Farm, Chile

Zimbabwe. You remember those guys, right?

The country’s plight with its currency became world famous, the butt of untold jokes in economic circles. At its height, hyperinflation in Zimbabwe reached nearly 90 sextillion in 2008.

That’s a 9 with 22 zeros.

To put it in context, if you had 90 sextillion grains of sand, you could cover the entire surface of the earth all the way to the outmost layers of the atmosphere.

Then, in April 2009, the government effectively abandoned the Zimbabwe dollar. The US dollar became the official currency for all government transactions, and US dollars, British pounds sterling, euros, and South African rand became the most widely used tender in circulation.

I’ve traveled to Zimbabwe frequently; they have some of the best stories you could ever hear about standing in line at the banks with wheelbarrows, and using stacks of paper currency at home for toilet paper or furniture.

Given that Zimbabwe is literally THE poster child for hyperinflation over the last half-century, one cannot understate the irony of their latest announcement.

Just yesterday, the government there announced that the Chinese renminbi (among other currencies) will become legal tender in Zimbabwe.

This is big news. As we have discussed so many times in the past, the current fiscal and monetary antics in the United States are absolutely no different than what Zimbabwe employed several years ago.

Zimbabwe printed its currency in nearly infinite quantities. So has the United States. The only difference is that the US dollar is readily accepted around the world thanks to good ole’ American credibility that was built by previous generations.

But that credibility is rapidly deteriorating. And everywhere you look, there are obvious signs that the rest of the world is quickly moving on from the dollar.

Central banks around the world are stocking up on gold. Major powers like China and Russia are calling for a new reserve currency. And a number of nations (Zimbabwe is the latest) have already begun to use other currencies like the renminbi for international trade and central bank reserves.

It’s happening. And it’s one of those things that will play out like what Hemingway wrote about going bankrupt: gradually, then suddenly.

The dollar’s share of global reserves has slowly fallen from roughly 75% in 2001, to just over 60% today.

But the world will eventually reach a bifurcation point where investors, foreign governments, central banks, etc. panic and start rushing for the exits.

It’s something that could happen tomorrow. Or five years from now. No one knows. But rational, intelligent people shouldn’t be waiting around for it to happen.

I very strongly recommend that you take a portion of your savings and move them into real assets– precious metals and productive land are the most obvious. But even things like collectibles or nonperishable goods (like ammunition) would be preferable to US dollars.

Then there’s other currencies that you can hold. Right now, the Norwegian krone has the strongest fundamentals in the world as it is backed by the most solvent central bank on the planet.

The Hong Kong dollar is also an interesting option because it minimizes your downside currency risk while providing protection against the US dollar’s deterioration.

(Premium members: please refer to your SMC welcome guide for actionable information about holding Hong Kong dollars and Norwegian krone.)

from SOVErEIGN MAN http://ift.tt/1kd74Cr
via IFTTT

Pending Home Sales See Biggest Collapse Since May 2010: Weather, Affordability Blamed

Pending Home Sales collapsed 8.7% month-over-month – the worst since May 2010 – missing by the most in over 3 years. This is a 6.1% drop YoY. Of course, analysts coul dnever have guessed that weather could have an impact (and ths reduce their expectations) but NAR’s Larry Yun notes “unusually disruptive weather” prevented buyers from looking. However, he goes on to add that “Home prices rising faster than income is also giving pause to some potential buyers.” This unusually honest line from the realtor mouthpiece is notable.

 

Oops…

 

But blaming this “miss” on weather means that analsyst forecasting this number have no idea.

Lawrence Yun , NAR chief economist, said several factors are working against buyers. “Unusually disruptive weather across large stretches of the country in December forced people indoors and prevented some buyers from looking at homes or making offers,” he said. “Home prices rising faster than income is also giving pause to some potential buyers, while at the same time a lack of inventory means insufficient choice. Although it could take several months for us to get a clearer read on market momentum, job growth and pent-up demand are positive factors.”


    



via Zero Hedge http://ift.tt/LdVf27 Tyler Durden

Ruble Rallying On Russian Verbal "Unlimited" Intervention

Following yesterday’s continued slide to record lows against the Central Bank’s currency basket, the Russian Ruble is rallying this morning as Russian Central Bank chief Elvira Nebiullina jawboned the threat of renewed intervention to “smooth out” markets:

  • *NABIULLINA SAYS FX MKT INTERVENTIONS NEEDED FOR FIN. STABILITY
  • *NABIULLINA SAYS BANK ROSSII ‘SMOOTHING OUT’ SHARP RUBLE SWINGS

One can only hope that – despite the bank runs, a plan not to raise rates, and a canceled bond auction – Russia has more success that Turkey is “fixing” the problem of QEasy money flows. The Ruble “basket” has reverted back to pre-Turkey levels.

 

The USD remains bid

 

But against the Central Bank’s currency basket, the losses from Turkey have been reverted…

 

Canceled Bond auction…

The Finance Ministry shelved this week’s sale after “an analysis of current market conditions,” it said in a statement on its website.

 

The ministry’s “actions are understandable — we don’t need to borrow at any cost,”

And today’s jawboning:

Speaking to reporters outside Moscow, Russian central bank Chairman Elvira Nabiullina reiterates FX interventions won’t be fully abandoned.

Policy stance was previously declared and central bank is adhering to it: Nabiullina

Nabiullina: “We are planning to stick to the timetable that was announced to increase exchange rate flexibility in 2014

Nabiullina: “We are smoothing out sharp fluctuations because we think that sharp fluctuations are harmful for everyone


    



via Zero Hedge http://ift.tt/MzwWgN Tyler Durden

Ruble Rallying On Russian Verbal “Unlimited” Intervention

Following yesterday’s continued slide to record lows against the Central Bank’s currency basket, the Russian Ruble is rallying this morning as Russian Central Bank chief Elvira Nebiullina jawboned the threat of renewed intervention to “smooth out” markets:

  • *NABIULLINA SAYS FX MKT INTERVENTIONS NEEDED FOR FIN. STABILITY
  • *NABIULLINA SAYS BANK ROSSII ‘SMOOTHING OUT’ SHARP RUBLE SWINGS

One can only hope that – despite the bank runs, a plan not to raise rates, and a canceled bond auction – Russia has more success that Turkey is “fixing” the problem of QEasy money flows. The Ruble “basket” has reverted back to pre-Turkey levels.

 

The USD remains bid

 

But against the Central Bank’s currency basket, the losses from Turkey have been reverted…

 

Canceled Bond auction…

The Finance Ministry shelved this week’s sale after “an analysis of current market conditions,” it said in a statement on its website.

 

The ministry’s “actions are understandable — we don’t need to borrow at any cost,”

And today’s jawboning:

Speaking to reporters outside Moscow, Russian central bank Chairman Elvira Nabiullina reiterates FX interventions won’t be fully abandoned.

Policy stance was previously declared and central bank is adhering to it: Nabiullina

Nabiullina: “We are planning to stick to the timetable that was announced to increase exchange rate flexibility in 2014

Nabiullina: “We are smoothing out sharp fluctuations because we think that sharp fluctuations are harmful for everyone


    



via Zero Hedge http://ift.tt/MzwWgN Tyler Durden

Goldman Lowers Q1 GDP Forecast To 2.7% Due To Inventory Impact

Earlier today we summarized the Q4 GDP print and said it would be virtually impossible for the economy to carry over a comparable annualized growth rate into 2014. Moments ago Goldman agreed, when it cut its Q1 GDP forecast by 30 bps to 2.7%.

From Jan Hatzius:

BOTTOM LINE: Q4 GDP grew in line with expectations, although the composition was slightly softer than expected. We start our Q1 GDP tracking estimate three-tenths below our prior assumption at 2.7%.

 

MAIN POINTS:

 

Real GDP increased at a 3.2% rate in Q4 (vs. consensus 3.2%). Personal consumption expenditures rose a smaller-than-expected 3.3% (vs. consensus 3.7%), which was still the fastest rate since 2010. Business fixed investment rose 3.8%, held down by a 1.2% decline in structures investment following two quarters of strong gains. Equipment investment rose a solid 6.9%. Business inventories added four-tenths to headline growth. Residential investment declined 9.8%, reflecting in part the lagged impact of weaker housing starts in past quarters. Net exports were also a strong positive contributor, adding 1.3 percentage points to growth. Federal government spending fell 12.6%, pushing total government spending down 4.9%. The Commerce Department estimated that the federal government shutdown subtracted three-tenths from GDP growth. Although the composition of this morning’s report was slightly softer than expected, solid 2.9% growth in real final sales to private domestic purchasers suggests positive underlying momentum heading into 2014.

 

We start our Q1 GDP tracking estimate three-tenths below our prior assumption at 2.7%, due to the larger-than-expected inventory contribution in Q4.


    



via Zero Hedge http://ift.tt/LdVbzi Tyler Durden