G8’s Scam on Poverty Eradication

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Since when did the people at the top have even the slightest inkling about what the poor people down below, the ones that we have trampled on, might be in need of to help them get out of the poverty that is entrenching their lives? Since when did the people at the top ever have the knowledge that the poor trampled masses actually existed? Isn’t it always the way? The rich little kid that believes that nobody lives in high-rise blocks and that everyone has a lawn that gets cut by the gardener. Others just couldn’t live any other way, could they? That’s what the G8 used to be like, anyhow. Today, the leaders are more than aware that the poor exist, since they have a right to be heard today. There are too many of them not to be heard and we have started listening to Africa only because there are growing numbers of poor in our own backyard, these days. But, theNew Alliance for Food Security and Nutrition that was launched by the G8 is nothing more than a hell-bent drive for money-making and profit of private companies, rather than actually doing much to help the ones that are in need of food.

It’s covert colonialism by the G8 countries. That’s rich, harking back to the past when we are having trouble dealing with the present and at the same time closing our own frontiers to immigration. Still, the poor die of hunger anyhow and people won’t be able to hear them complaining. In the meantime, the West, the G8 gets a much-needed boost to their economies and the state coffers. At the same time, the populations of the G8 countries get to sleep peacefully at night thanking their lucky stars that they have a government that is altruistic and benevolent, even charitable. More like malevolent. The people always need dazzling, so they can’t see what’s really going on behind the scenes.

The New Alliance means that agribusiness will be sitting alongside governments and that African governments will make changes in their laws, policies and regulations so that it will sweep in a new attractiveness for the private sector that wishes to invest there. The G8 has, in its patronizingly over-bearing tone declared that it was going to be the sole decision-maker on this and local farmers weren’t going to be consulted. Of course they weren’t consulted. They don’t get heard because they are the poor. They haven’t been able to get themselves out of poverty so why would the G8 give them a role to play other than the one that is given to them?

But, it gets worse, since now the governments of those countries have decided to change land and tax laws so that private businesses from the west are favored over the local farmers. Export controls have been eased and enormous pieces of land have been taken over to be given to private firms. Malawi has set aside 200, 000 hectares of land for such commercial use. Nigeria has promised to allow energy companies to be privatized. New Alliance was meant to be for food production for Africa to stop them farming, but much of the land will be used to produce cotton, biofuels and rubber. That way they will die a quicker death. 50 million people were meant to be on the road to having enough food to survive by the year 2022.

Taxes on seed were also part of the agreement, meaning that seed will have to be imported in the future by the local farmers. Smallholder farmers will simply disappear for the profit of the large Western companies that will be running the land in large-scale commercial farming.

It was under Barack Obama’s initiative that the scheme was launched at Camp David in 2012. Eradicating poverty had already been promised at the G8 meeting in L’Aquila in Italy in 2009 and there are countless examples of how we were going to solve the problem of the starving millions. We never have. Although, this means that we will put another nail in their coffin and at the same time look retrospectively back at the colonial past.

The G8 is hiding behind apparent admirable values of getting African countries out of the rut of poverty and into the new world of consumerism. But, covertly, it’s just a scam to get rich countries richer in the process and favor private enterprises from our economies rather than the African ones. In essence, in the end, the G8’s poor attempt called New Alliance will do nothing more than make the rich richer, and the poor will just meaninglessly lag behind the rest of us in the world’s economies. Governments today and even citizens still believe that we need to have the poor so that we can be the rich, anything else would be tantamount to sharing equally, and we don’t share todays with the little poor kids that live down the next block.

Originally posted: G8’s Scam on Poverty Eradication

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Here Is How High Frequency Trading Hurts Everyone

The market value of a stock quote continues to plummet. As Nanex shows so graphically below, it's taking more quotes to get the same amount of trading done in today's stock market, meaning that everyone has to process more information than ever before, yet actual trading continues to stagnate.

 

Via Nanex,

High Frequency Trading (HFT) algorithms that place and cancel quotes faster than most people can physically process them, are causing market data inefficiencies to soar.

Here is how HFT harms everyone, including long term investors (well, except for HFT CEO's and the Exchanges).

Data is for SPY between January 2005 through February 19, 2014.
 

The number of quotes each day in SPY is skyrocketing..

..but the total dollar value of SPY traded each day stagnates..

..exposing the gross inefficiency of an HFT Quote.

This is how many quotes it took to trade $100,000 worth of SPY each day. Higher values means less efficiency (bad).

 

 

As Better Markets explained previously,

That is why it is imperative to understand that volume and liquidity are not synonymous.

 

Sufficient liquidity is essential for healthy markets, but much HFT-created “volume” actually subtracts liquidity, as in the case illustrated above where the predatory behavior of the HFT merely appears to narrow spreads while in fact increasing costs for investors.

 

…suggests that not only are predatory HFT strategies like so-called “latency arbitrage” taking money out of the pockets of investors, but they are actually destroying wealth and not merely redistributing it.
 


    



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Groupon Enters Bear Market On “Lack Of Growth” Scare

While deciphering the adjustments, compulsory one-off charges, promises, ranges, and hopes, dreams, and unicorn tears is hard, the market saw headline beats in EPS and Revenues and surged GRPN above $12 enabling CNBC to proclaim it a winner before moving on… then someone (or maybe a machine) read the statement… “Groupon expects Adjusted EBITDA for the full year to be slightly above 2013 levels.” That’s just not gonna cut it when you can spend $19 billion on the hope of exponential growth… and sure enough, GRPN shares collapsed – down over 23% from the after-hours highs.

 

 

Seems like it’s time to buy SnapChat for $30 billion!!


    



via Zero Hedge http://ift.tt/1cv9Z7A Tyler Durden

Groupon Enters Bear Market On "Lack Of Growth" Scare

While deciphering the adjustments, compulsory one-off charges, promises, ranges, and hopes, dreams, and unicorn tears is hard, the market saw headline beats in EPS and Revenues and surged GRPN above $12 enabling CNBC to proclaim it a winner before moving on… then someone (or maybe a machine) read the statement… “Groupon expects Adjusted EBITDA for the full year to be slightly above 2013 levels.” That’s just not gonna cut it when you can spend $19 billion on the hope of exponential growth… and sure enough, GRPN shares collapsed – down over 23% from the after-hours highs.

 

 

Seems like it’s time to buy SnapChat for $30 billion!!


    



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Stocks And Silver Soar On China PMI Miss

Headlines will suggest that today's rally was due to the beat in US PMI (a data item that doesn't even rank on Bloomberg's scale of economic importance) and chose to ignore the misses (macro and micro) in everything else (which must be weather-related), the facts are different – it was simply an AUDJPY-inspired almost perfect correlation levitation from the post-China-PMI miss lows – more China QE to come. Having decoupled from USDJPY overnight, today's melt-up in stocks recoupled the all-important fun-durr-mental pair and lifted the Russell 2000 back to unchanged for 2014. With OPEX tomorrow, VIX was noisy and remains bearishly divergent from stocks (though was offered today). Credit markets lifted with stocks. Treasury yields rose back to modestly higher on the week. Gold and silver rose on the day starting from the China PMI miss (as did the USD with most of the majors losing ground against it). US Macro hits fresh 6-month lows.

 

AUDJPY ruled the day…Spot the Difference (what's the forward P/E of AUDJPY?)

 

And USDJPY and S&P 500 recoupled…

 

As The Russell 2000 reached all the way back up to unchanged for 2014

 

Russell and Nasdaq cash are up 7.3% off the early Feb lows…

 

US Treasuries sold off today – back to modestly higher in yield on the week…though the afterenoon saw buying come back in even as stocks rose…

 

Gold and silver rose non-stop following the China PMI miss…

 

Today was all about hope of more liquidity from the China PMI miss…

 

Of course, Goldman proclaiming last night That the FOMC minutes were not hawkish probably helped to pump this idiocy.

 

Charts: Bloomberg

Bonus Chart: US Macro is a mess…

 

Bonus Bonus Chart: NKY and USDJPY not playing well with each other again…


    



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The One Investment You Want To Avoid At All Costs

Submitted by Simon Black of Sovereign Man blog,

4.1%.

I read it twice to make sure my brain had processed the number correctly. Yep, 4.1%.

This was the annual yield promised on a new 5-year bond investment that a private banker colleague had sent to me. I couldn’t believe it.

The bond issuance was by a state-owned company in India. And despite the Indian government having a -very- recent history of capital controls, price fixing, and asset confiscation, and despite the company being rated near JUNK status, the bond only carried a yield of 4.1%.

This is really amazing when you think about it. Central bankers have destroyed money and interest rates to the point that near-bankrupt companies in shaky jurisdictions can borrow money for practically nothing.

It’s an utter farce. The rate of inflation is -at least- 3% in many developed countries. Central bankers will even say they are targeting 3% inflation.

This means that if investors simply want to generate enough income so that their after-tax yield keeps pace with inflation, they have to assume a ridiculous amount of risk.

This is a really important point to understand given that the global bond market is so massive– roughly $100 trillion, with nearly $1 trillion traded each day in the US alone.

This is almost twice the size of the global stock market. And even if people never invest in a bond themselves, they’re directly connected to the bond market.

Your pension fund owns bonds. The bank that is holding on to your money owns bonds. The companies listed on the stock market that you invest in own bonds.

Yet bonds are some of the worst investments out there right now. And that’s saying a lot given how overvalued stock markets are.

Here’s the bottom line: adjusting for both taxes and inflation, bondholders are losing money, even on risky issuances.

Think about it– if you make a 4% return and pay 25% in taxes, your net yield is 3%. If inflation is 3%, your entire gain is wiped out… so you have taken that risk for nothing.

If inflation rises just a bit then you are in negative territory.

There are those who suggest that deflation is a much greater risk right now than inflation… and that bonds are great investments to own in the event of deflation.

But here’s the thing– even if deflation takes hold and prices fall, anyone who is deeply in debt is going to feel LOTS of pain. Instead of their debt burden inflating away, now they’ll be scrambling to make interest payments.

So while bonds are a sensible deflationary investment in theory, in practice deflation will only increase the likelihood of default. This puts many bond investments at serious risk.

Last, if interest rates rise from these all-time lows, a bond’s value in the marketplace will plummet. So not only will you have made zero income, you would be looking at a steep loss if you try to sell.

Longer term, fixed rate bonds in weak currencies are almost guaranteed losers and should be avoided at all costs. You would be much better off setting your cash ablaze in a bonfire. It’s at least a better story to tell and will save you years of anguish watching your position erode.


    



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The UK’s 2-Tier Economy – London (And Everyone Else)

London’s economy may be decoupling from the rest of the U.K. at an accelerating pace. As Bloomberg's Niraj Shah explains, the capital’s contribution to U.K. output, house prices and financial jobs are all at a record high while the suicide rate is at a series low… while the rest of the nation is 'not'.

 

London Contribution to U.K. GDP at Record High

London’s GDP is larger than that of 12 of the 18 euro-area nations. London’s share of U.K. output measured by gross value added rose to a historic high of 21.9 percent in 2011, the latest available data from the ONS show. Scotland accounts for 8.2 percent of U.K. output. One in 28 Londoners is a millionaire, according to wealth analysts Wealth Insight.

Financial Sector’s Growing Dominance

The number of financial services jobs in London rose above the pre-crisis level last year to 688,000, according to lobby group TheCityUK. City jobs are forecast to rise by 2.7 percent this year to 707,500. The financial sector accounted for 21.1 percent of London’s output in 2010. Sixty percent of inner London workers are graduates, compared with 29 percent in northeast England, the ONS says

Record House Prices

The gap between London house prices and those in the rest of the U.K is widening. Values in London rose 12.3 percent in the 12 months through December, compared with 3.1 percent when the capital and southeast England are excluded. The average London house price was 450,000 pounds in December, compared with the national average of 250,000 pounds, the ONS says. That is 28.6 percent above the pre-crisis peak.

Suicide Rate Drops to Series Low

The suicide rate in London fell to a series-low of 8.7 deaths per 100,000 in 2012 from 8.9 per thousand in 2011. That compares with 12.4 deaths per 100,000 in the northwest. The number of London suicides fell to 576 in 2012 from 985 in 1981. In 25 years, the capital’s suicide rate has dropped to the lowest in the U.K. from the highest.

h/t @EconomistNiraj

 

So the question is – who is Mark Carney managing the economy for? or perhaps more accurately, which economy is he (or his central bank cronies) "boosting"


    



via Zero Hedge http://ift.tt/1bPyK0m Tyler Durden

The UK's 2-Tier Economy – London (And Everyone Else)

London’s economy may be decoupling from the rest of the U.K. at an accelerating pace. As Bloomberg's Niraj Shah explains, the capital’s contribution to U.K. output, house prices and financial jobs are all at a record high while the suicide rate is at a series low… while the rest of the nation is 'not'.

 

London Contribution to U.K. GDP at Record High

London’s GDP is larger than that of 12 of the 18 euro-area nations. London’s share of U.K. output measured by gross value added rose to a historic high of 21.9 percent in 2011, the latest available data from the ONS show. Scotland accounts for 8.2 percent of U.K. output. One in 28 Londoners is a millionaire, according to wealth analysts Wealth Insight.

Financial Sector’s Growing Dominance

The number of financial services jobs in London rose above the pre-crisis level last year to 688,000, according to lobby group TheCityUK. City jobs are forecast to rise by 2.7 percent this year to 707,500. The financial sector accounted for 21.1 percent of London’s output in 2010. Sixty percent of inner London workers are graduates, compared with 29 percent in northeast England, the ONS says

Record House Prices

The gap between London house prices and those in the rest of the U.K is widening. Values in London rose 12.3 percent in the 12 months through December, compared with 3.1 percent when the capital and southeast England are excluded. The average London house price was 450,000 pounds in December, compared with the national average of 250,000 pounds, the ONS says. That is 28.6 percent above the pre-crisis peak.

Suicide Rate Drops to Series Low

The suicide rate in London fell to a series-low of 8.7 deaths per 100,000 in 2012 from 8.9 per thousand in 2011. That compares with 12.4 deaths per 100,000 in the northwest. The number of London suicides fell to 576 in 2012 from 985 in 1981. In 25 years, the capital’s suicide rate has dropped to the lowest in the U.K. from the highest.

h/t @EconomistNiraj

 

So the question is – who is Mark Carney managing the economy for? or perhaps more accurately, which economy is he (or his central bank cronies) "boosting"


    



via Zero Hedge http://ift.tt/1bPyK0m Tyler Durden

Two Ice Floes

Two Ice Floes

By

Cognitive Dissonance

 

Introducing a new portal into the mind of Cognitive Dissonance

www.TwoIceFloes.com

 

Regardless of who we are or where we live one truth seems unmistakably clear; we live, work, play, think and just plain exist in two very different worlds simultaneously, while moving seamlessly between and within them in real time. The more obvious of these two realms is the physical ‘real’ world that lay all around us, the place where our physical bodies reside and the space in which we live and eventually die. And then there is the dominion of our (non local) consciousness, some might call it the ‘mind’, ‘soul’ or ‘self’, the place only ‘I’ may find me, myself and mine.

Essentially we exist on two ice floes, which for the vast majority of us are permanently locked together and seemingly inseparable. But for those of us who begin to open our minds and plumb the depths of the rabbit hole, there is an increasing awareness that these two ice floes can and will not only move separately, but at different speeds and levels of awareness.

For the most part we believe that the first world, the so called ‘real’ world, is authentic and genuine, while the second place is just a space, a figment of our mind. And I guess the proof of this lay within our global insane asylum, for if we inmates were not so crazy in the mind, then our world would not be so very confined. But for this particular inmate it is well past time to release me, myself and mine from the self imposed ties that bind. 

I am not a victim and I am not a slave. I am what I decide I am both in the physical realm and within the space of my mind. For far too long I have allowed…….no, more honest words would be passively enabled, my physical world to be fused and formed not by my own mind, not by my own inner being, my ‘self’, but by all the other minds with whom I share this physical world, some of which are much more nefarious and soul sucking than me and mine.

My ego proudly asserts that I alone make my fate, and to a large extent this may be true, at least in the ‘real’ world. But up to this point if it is true it’s only because I have allowed the prevailing default mind control program to dominate me with only slight alterations and modifications to suit the egotistic belief that I am unique in a world not of my own making.

For the most part I live in a reality created by those who do not have my best interests in mind, who wish to control my mind and subvert my consciousness so that the body obediently follows.

My Cognitive Dissonance is that up until a half dozen or so years ago this Cog did not believe he was just another custom colored gear in the reality machine operating system, an emotionally comforting self deception that I desperately wanted to believe in order to rationalize my conformity.

Few wish to march to a different drummer, to be a self imposed outcast from the herd, a contrarian, a loner. Please, please, may I join your self-affirming pod? Born a perfectly unique individual, we spend the rest of our physical lives trying the die just like all the others. Conditioned from birth to believe that ‘I’ was only fit to be part of a ‘we’, breaking up is hard to do.

Two Ice Floes

As I began to seek out answers to the questions that were rapidly forming in my mind and soul I quickly found that there were no end of people, places and things that promised me they had “The Answer” (which as we all know is actually 42). The problem was that often, if not always, “The Answer” promoted by “A” conflicted with “The Answer” offered by “Z”. And yet when examined individually, and most importantly with an open mind, they both made some sense while isolated from both worlds.

Worse, regardless of whether I was examining explanations promoted from the ‘real’ world perspective (aka the scientific worldview mindset) or the esoteric point of view (the woo woo world as some would call it) they all ultimately required blind ‘belief’, a giant leap of faith that this was truth and that was not. “They” of course would loudly claim that this was not so, that it was the other side that required the faith. See…here is my proof.

The one common denominator I consistently found among the self professed truth purveyors was that whoever was speaking from whatever point of view they were promoting, the narrative was always one of self assured confidence that wisdom and light was their exclusive domain. No wavering, no self doubt, no hedging allowed when spouting “The Truth”. To express any uncertainty whatsoever was, and still is, considered a sure sign of weakness and will never be entertained. This belief is nearly universally held and is of course promoted by all self proclaimed authorities.

While the word “Propaganda” has been almost completely intertwined with government controlled information, the reality is that we are all propagandists in the purest sense of the term. When we speak, write or communicate an idea or thought, we tend to present our best argument in favor of our point of view and either diminish, ignore or subvert contrary information that does not help our case and might actually torpedo it.

I am just as guilty of this practice as anyone else, though I do try my best to at least expose myself as a propagandist by declaring myself one with as much certainty as possible. What I try to do in an attempt to compensate for what comes naturally to all of us, primarily because we have been immersed in this authoritarian culture from birth, is to inject a smidge of humility into the equation by exposing my flaws, doubts, confusion and uncertainty. In short, to be aware of my ego and its sometimes subtle, sometimes enormous, influences upon “me”.

There is a saying I am sure I’m about to butcher. There is your truth, there is my truth, and then there is the ‘truth’ which can usually be found somewhere in between, possibly even in the middle. I suspect the actual location is not fixed and will almost certainly not be found between the two promoted “truths” simply because it would be outrageously narcissistic to proclaim that all the undiscovered territory is safely contained between the two “know” end points. It is the epitome of egotistic expression to confidently claim that I occupy one end of the universe, let alone the very center.

Even if one does not accept this premise, and you most certainly should not simply because I am promoting it, what is one to do if one is lost in the wilderness without an accurate compass, maps or signposts, also known as static answers? Well….if you want better answers, the only solution is to ask better questions. And the only way I can see how we can formulate better questions is to expand our perceptive minds and awareness and dump our preconceived notions and beliefs overboard.

I don’t have all the answers. In fact I only have a few. What I have, at least when I can convince my ego that new knowledge is not threatening to it, and thus to me, is the desire and capacity to explore and expand my severely limited universe and seek out those better questions. I am willing to go it alone, but it seems silly to even try when I am not alone in my desire to look beyond my nose and push back the barriers of the ‘known’ body of knowledge and wisdom.

Asking Better Questions

How do you eat an elephant, particularly one that just appeared out of nowhere right in front of your eyes? One bite at a time is the only answer that works for everyone and one that seems to work for me. Over the last seven years, as my growing awareness of the grand facade grew, I began to make changes both personally and professionally, some small and seemingly inconsequential, and others huge and life altering. With the help and encouragement of Mrs. Cog I am once again turning the wheel of life and embarking on another life altering metamorphosis.

Would you care to join me, to observe or even to participate, in a real time thought experiment of alternative reality creation played out in a semi public forum? If you would like to do so then may I introduce you to a new portal into the mind of Cognitive Dissonance?

 

02-20-2014

Cognitive Dissonance

www.TwoIceFloes.com


    



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