All The Latest In Merkel's "ObamaPhone" Scandal

Losing track of all the loose ends as the NSA handed out Obamaphones to virtually every world leader? Here is the latest summary via BBG and other outlets:

  • NSA boss Keith Alexander personally informed Obama in 2010 about secret operations targeting German chancellor and president didn’t demand to stop it, Bild am Sonntag reported, citing unidentified U.S. intelligence sources: Bild
  • US denies Obama knew of Merkel spying: AFP
  • Merkel to seek ‘no spy deal’ within EU as well as with US: Reuters
  • Spying didn’t just involve Merkel’s phone from her party, the tamper-proof phone she got in summer also hacked: Bild
  • Merkel Violated Rules With Use of Party Mobile Phone, Welt Says
  • NSA spied on Merkel’s text messages, mobile phone calls: Bild
  • NSA specialists didn’t tap Merkel’s specially secured landline
  • Social Democrats demand parliamentary investigation to look into matter, SPD’s Thomas Oppermann tells Bild
  • Interior Minister Hans-Peter Friedrich says tapping phones is crime and needs to be prosecuted, says trust has evaporated: Bild


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Mvy99G8wH9M/story01.htm Tyler Durden

All The Latest In Merkel’s “ObamaPhone” Scandal

Losing track of all the loose ends as the NSA handed out Obamaphones to virtually every world leader? Here is the latest summary via BBG and other outlets:

  • NSA boss Keith Alexander personally informed Obama in 2010 about secret operations targeting German chancellor and president didn’t demand to stop it, Bild am Sonntag reported, citing unidentified U.S. intelligence sources: Bild
  • US denies Obama knew of Merkel spying: AFP
  • Merkel to seek ‘no spy deal’ within EU as well as with US: Reuters
  • Spying didn’t just involve Merkel’s phone from her party, the tamper-proof phone she got in summer also hacked: Bild
  • Merkel Violated Rules With Use of Party Mobile Phone, Welt Says
  • NSA spied on Merkel’s text messages, mobile phone calls: Bild
  • NSA specialists didn’t tap Merkel’s specially secured landline
  • Social Democrats demand parliamentary investigation to look into matter, SPD’s Thomas Oppermann tells Bild
  • Interior Minister Hans-Peter Friedrich says tapping phones is crime and needs to be prosecuted, says trust has evaporated: Bild


    



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USDJPY Ignition Lifts S&P 500 Futures To All-Time-Record-Er High (For Now)

It seems ‘someone’ needed to run the S&P futures market back over Friday’s highs just to flush the stops one more time. Thanks to some JPY-selling that momentum was ignited and S&P futures just made new all-time-highs… because, well why not. Soon after the stops were run in stocks, JPY started to revert and so are futures. Gold, oil, and treasuries are all unch for now as is EURUSD.

 

S&P futures were up over 5 points…

 

 

Chart: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/K24HtWx0uRo/story01.htm Tyler Durden

USDJPY Ignition Lifts S&P 500 Futures To All-Time-Record-Er High (For Now)

It seems ‘someone’ needed to run the S&P futures market back over Friday’s highs just to flush the stops one more time. Thanks to some JPY-selling that momentum was ignited and S&P futures just made new all-time-highs… because, well why not. Soon after the stops were run in stocks, JPY started to revert and so are futures. Gold, oil, and treasuries are all unch for now as is EURUSD.

 

S&P futures were up over 5 points…

 

 

Chart: Bloomberg


    



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Behold The Face Of Central Banker Hubris

Submitted by Simon Black of Sovereign Man

Behold The Face Of Central Banker Hubris

March 18, 1996. It was the height of the dot-com boom years. And gracing the cover of Fortune magazine was a photo of a rather smug looking Alan Greenspan, then Chairman of the US Federal Reserve.

The headline across the top– “It’s HIS economy, stupid”. The inside story was entitled “In Greenspan We Trust”.

And the article went on to suggest that, no matter WHO won the presidential election that year between Bill Clinton and Bob Dole, Greenspan would still be running the economy. And handily.

This is a major testament to the state of our financial system. We award a tiny banking elite nearly totalitarian control over our money supply… and by extension, the economy.

We’re just supposed to trust that they’re good guys. Competent guys. That they know what they’re doing.

Fast forward almost two decades. Long Term Capital Management. The NASDAQ bubble. The real estate bubble. The credit crunch. The mortgage crisis. The banking crisis. The sovereign debt crisis.

Now, this seemingly interminable series of emergencies is by no means the consequence of a single individual. But it’s clear that Greenspan (and his successor Ben Bernanke) have had, by the very definition of their position, tremendous influence in getting us to this point.

Yet Greenspan’s new book, The Map and the Territory, explains why he never saw any of this coming.

(You can read some of this for yourself if you’re so inclined– Foreign Affairs magazine just published an adapted excerpt from the book.)

Greenspan’s explanation is as infuriating as it is arrogant.

He stops far short of accepting any responsibility, and merely states that the “conventional method of predicting macroeconomic developments. . . had failed when it was needed most, much to the chagrin of economists.”

And of course, he melts his culpability away into the great masses of other economists, brashly stating that “virtually every economist and policymaker” completely missed the warning signs.

Yet as irritating as Greenspan’s confession may be, there is no surer condemnation of this faux-science of economics than a former maestro himself pillorying its deficiencies.

Let’s put it more bluntly. The guy who used to be in charge of the US economy openly admits that the ‘science’ they rely on to make decisions is fundamentally flawed.

The only thing these central bankers know how to do is print more money. Yet, as Greenspan tells us, they’re completely ill-equipped to be making these decisions. Nor do they realize how severe the consequences will be.

John Maynard Keynes, the godfather of their economic models himself, once wrote:

“The process [of debasing the currency] engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

Not one man in a million. Based on Greenspan’s own admission, this includes central bankers as well.

If all the objective evidence, and even their own assessment, points to the inevitable conclusion that this system is broken, isn’t it time to consider taking independent steps outside of this system to protect what you’ve worked for your entire life?


    



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BofAML Warns "US 10Y Yields Have Reached Massive Resistance"

Since mid-October the US$ has been under siege. However, As BofAML’s MacNeill Curry notes, that decline is showing signs of exhaustion from which a base and correction higher is likely. Curry’s “basing” view is further supported by the US Treasury market, where yields (particularly 5yrs and 10yrs) are poised to bottom and turn higher over the coming sessions

US Treasury yields set to base

US 10yr yields have reached “Massive” resistance. Specifically, the 2.474%/2.399% zone has been a long standing pivot which has repeatedly repelled. With momentum (14d RSI) at its most overbought since May, odds favor a medium term bearish turn in trend towards the mid-Oct highs at 2.759%.

 

 

Source: BofAML


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/E4OtjUm7i7Y/story01.htm Tyler Durden

BofAML Warns “US 10Y Yields Have Reached Massive Resistance”

Since mid-October the US$ has been under siege. However, As BofAML’s MacNeill Curry notes, that decline is showing signs of exhaustion from which a base and correction higher is likely. Curry’s “basing” view is further supported by the US Treasury market, where yields (particularly 5yrs and 10yrs) are poised to bottom and turn higher over the coming sessions

US Treasury yields set to base

US 10yr yields have reached “Massive” resistance. Specifically, the 2.474%/2.399% zone has been a long standing pivot which has repeatedly repelled. With momentum (14d RSI) at its most overbought since May, odds favor a medium term bearish turn in trend towards the mid-Oct highs at 2.759%.

 

 

Source: BofAML


    



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Guest Post: The Plan Is Not Working

Submitted by Jeffrey Tucker of Laissez Faire Club blog,

You didn’t want to be the guy chosen to tell Stalin that the wheat crop failed or the production quotas on trucks and cars were not met. Why?

Because despots always blame people, not systems.

In the same way, you don’t want to be the guy chosen to tell Obama that his health care websites are a disaster. But that’s what they are, and he’s managed to blame everyone but himself.

At his hilarious and embarrassing press conference on Monday, the president first assured us that “no one is madder than me” about website failures. Then, of course, he lashed out at the critics and implicitly blamed them for technical failures.

“It’s time for folks to stop rooting for its failure, because hardworking, middle-class families are rooting for its success.”

Someone needs to explain to this guy that rooting one way or another does not cause a website to fail. Crop failures in Russia were not because of the enemies of communism, and the failure of Obama’s health care websites are not due to his political enemies, either. The problem is that government is a bad developer, even when it’s contracting out.

Then Obama said, “We did not wage this long and contentious battle just around a website. That’s not what this was about.”

There he goes again, defining his own reality. By plunging into direct provision of a commercial service and forcing people to cough up for it, Obamacare and its website must be prepared to be accessed just like any other private market service.

People don’t like it when websites are flaky and do not perform. By dismissing this feature — treating the website as if it is just a luxury feature that has nothing to do with the program itself — he reveals that he’s stuck in the past.

A website is not just a convenience. It is the heart and soul of a service that purports to serve everyone. In some ways, this is the most important website this government has ever produced. People don’t use the sites of the Pentagon or Housing and Urban Development. But this one people not only use, but are forced to use. Its failure is epic.

The president then made matters worse. He pointed out that people can download a form and mail it in. Also that people can go to centers where there are people who can help. Then he even rattled off an 800 number that people could call.

As The New York Times said with a funny blandness: “Several calls to the number immediately after he read it produced busy signals.”

Busy signals? I think the last time I heard one of those I was in seventh grade. No one under the age of 25 even knows what a “busy signal” is.

The terrifying thing is that all the troubles with HealthCare.gov foreshadow what’s coming with the new system of health care. Who can doubt it? It is going to be thrown back, inefficient, backward-looking, full of bureaucracy, insanely expensive, characterized by busy signals, and ultimately ending with a demand to come back another day.

Let’s talk about expenses. The website Digital Trends estimates costs between $500 million and perhaps as much as $2 billion before the end of 2014 just to operate the website. This is, quite frankly, unthinkably absurd:

“Facebook, which received its first investment in June 2004, operated for a full six years before surpassing the $500 million mark in June 2010. Twitter, created in 2006, managed to get by with only $360.17 million in total funding until a $400 million boost in 2011. Instagram ginned up just $57.5 million in funding before Facebook bought it for (a staggering) $1 billion last year. And LinkedIn and Spotify, meanwhile, have only raised, respectively, $200 million and $288 million.”

In short, this stuff redefines the word “boondoggle.” And it’s not like the typical Pentagon scandal because, again, this is a regular commercial webspace. Every business in America builds websites. The big difference is they do it with their own money. People know how much sites cost and how they are supposed to operate. That’s why this government website failure is so significant.

It is worth asking why a government with half a billion dollars and vast amounts of time and personnel to make a great site can’t actually manage to do it. It’s not as if the government didn’t have the incentive to do it right. The most powerful people on Earth wanted it to succeed — and in this respect, there is no question that Obama is telling truth. He really did wish upon a star.

The problem is that government is not the best means to do anything well. The problem is the absence of two crucial things: the knowledge to assemble the resources properly and the means to make the economic assessment of the value of competitive resources. This is what happens when you eliminate the profit-and-loss system. You can throw massive resources at a problem with the end result being disappointing.
You didn’t want to be the guy chosen to tell Stalin that the wheat crop failed or the production quotas on trucks and cars were not met. Why?

Because despots always blame people, not systems.

In the same way, you don’t want to be the guy chosen to tell Obama that his health care websites are a disaster. But that’s what they are, and he’s managed to blame everyone but himself.

At his hilarious and embarrassing press conference on Monday, the president first assured us that “no one is madder than me” about website failures. Then, of course, he lashed out at the critics and implicitly blamed them for technical failures.

“It’s time for folks to stop rooting for its failure, because hardworking, middle-class families are rooting for its success.”

Someone needs to explain to this guy that rooting one way or another does not cause a website to fail. Crop failures in Russia were not because of the enemies of communism, and the failure of Obama’s health care websites are not due to his political enemies, either. The problem is that government is a bad developer, even when it’s contracting out.

Then Obama said, “We did not wage this long and contentious battle just around a website. That’s not what this was about.”

There he goes again, defining his own reality. By plunging into direct provision of a commercial service and forcing people to cough up for it, Obamacare and its website must be prepared to be accessed just like any other private market service.

People don’t like it when websites are flaky and do not perform. By dismissing this feature — treating the website as if it is just a luxury feature that has nothing to do with the program itself — he reveals that he’s stuck in the past.

A website is not just a convenience. It is the heart and soul of a service that purports to serve everyone. In some ways, this is the most important website this government has ever produced. People don’t use the sites of the Pentagon or Housing and Urban Development. But this one people not only use, but are forced to use. Its failure is epic.

The president then made matters worse. He pointed out that people can download a form and mail it in. Also that people can go to centers where there are people who can help. Then he even rattled off an 800 number that people could call.

As The New York
Times said with a funny blandness: “Several calls to the number immediately after he read it produced busy signals.”

Busy signals? I think the last time I heard one of those I was in seventh grade. No one under the age of 25 even knows what a “busy signal” is.

The terrifying thing is that all the troubles with HealthCare.gov foreshadow what’s coming with the new system of health care. Who can doubt it? It is going to be thrown back, inefficient, backward-looking, full of bureaucracy, insanely expensive, characterized by busy signals, and ultimately ending with a demand to come back another day.

Let’s talk about expenses. The website Digital Trends estimates costs between $500 million and perhaps as much as $2 billion before the end of 2014 just to operate the website. This is, quite frankly, unthinkably absurd:

    “Facebook, which received its first investment in June 2004, operated for a full six years before surpassing the $500 million mark in June 2010. Twitter, created in 2006, managed to get by with only $360.17 million in total funding until a $400 million boost in 2011. Instagram ginned up just $57.5 million in funding before Facebook bought it for (a staggering) $1 billion last year. And LinkedIn and Spotify, meanwhile, have only raised, respectively, $200 million and $288 million.”

In short, this stuff redefines the word “boondoggle.” And it’s not like the typical Pentagon scandal because, again, this is a regular commercial webspace. Every business in America builds websites. The big difference is they do it with their own money. People know how much sites cost and how they are supposed to operate. That’s why this government website failure is so significant.

It is worth asking why a government with half a billion dollars and vast amounts of time and personnel to make a great site can’t actually manage to do it. It’s not as if the government didn’t have the incentive to do it right. The most powerful people on Earth wanted it to succeed — and in this respect, there is no question that Obama is telling truth. He really did wish upon a star.

The problem is that government is not the best means to do anything well. The problem is the absence of two crucial things: the knowledge to assemble the resources properly and the means to make the economic assessment of the value of competitive resources. This is what happens when you eliminate the profit-and-loss system. You can throw massive resources at a problem with the end result being disappointing.

Again, it is not just about the website. It is about the whole system. The fools who imposed this system had all the expertise, all the arrogance, all the money, and all the power, and they still couldn’t do it. Meanwhile, hundreds of thousands of workable and useful websites go up every day.

Has there ever been in our times a better symbol of the failure of government? The truth is this: Government doesn’t work. Here’s the proof. It’s just the beginning. If you want health care in the future, you are going to have to look outside the system. And plenty of people right now are working on that solution, which, unlike that which the experts create, will actually serve human needs. The fools who imposed this system had all the expertise, all the arrogance, all the money, and all the power, and they still couldn’t do it. Meanwhile, hundreds of thousands of workable and useful websites go up every day.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/tjjaC2zkW3c/story01.htm Tyler Durden