Tag: finance

WTF will be the head-scratching meme of the day. After spending weeks ‘denying’ facts and blaming weather for just how bad all the macro data in the US has been recently (US Macro index at six-month lows), Markit’s US PMI just smashed expectations, printing at 56.7 (vs 53.6 exp.). All the main sub-indices from new orders to employment rose markedly suggesting all is well with the recovery and that weather has had no effect whatsoever. In fact, US PMI jumped the most on record in February. Of course, USDJPY was spanked on this ‘great news’ and that smashed US equity markets higher, filling the China PMI miss gap down.

 

What Weather effect?

 

It’s all good – no weather here…

 

 

Charts: Bloomberg

via Zero Hedge http://ift.tt/1gKYM4j Tyler Durden

The importing of Japan’s deflation continues: in January headline consumer prices as well as prices excluding food and energy rose by 0.1%, in line with expectations, and down from a downward revised 0.2% in December. The annual increase in prices rose modestly from 1.5% to 1.6%, but still below the Fed’s 2.0% target. The main reason for the increase? Why the polar vortex, and specifically soaring electricity prices as a result of the surge in nat gas. “Increases in the indexes for household energy accounted for most of the all items increase. The electricity index posted its largest increase since March 2010, and the indexes for natural gas and fuel oil also rose sharply. These increases more than offset a decline in the gasoline index, resulting in a 0.6 percent increase in the energy index.”

Of course, H readers already knew this courtesy of our report on electricity prices charged by ConEd which as we showed yesterday soared to what may be an all time monthly high:

The headline monthly price increase has been in a range of 0.0% to 0.2% for the past 7 months.

Some other observations:

The index for all items less food and energy also rose 0.1 percent in January. A 0.3 percent increase in the shelter index was the major contributor to the rise, but the indexes for medical care, recreation, personal care, and tobacco also increased. In contrast, the indexes for airline fares, used cars and trucks, new vehicles, and apparel all declined in January. The food index rose slightly in January. The index for food at home rose 0.1 percent, with major grocery store food groups mixed.

 

The all items index increased 1.6 percent over the last 12 months; this compares to a 1.5 percent increase for the 12 months ending December. The index for all items less food and energy has also risen 1.6 percent over the last 12 months. The energy index has risen 2.1 percent over the span, and the food index has increased 1.1 percent.

The categories summarized:

Of note: in addition to the annual decline in commodity prices, the 0.3% drop in apparel prices over the past 12 months confirms that apparel retailers have zero pricing power and that anyone hoping for a rebound in the discretionary retail space, at least that not targeting the 0.01%, is in for a long wait.

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

For the 4th week of the last 5, initial claims missed expectations (though very modestly 336k vs 335k exp). This data confirms the trend that so many clung to last year as a driver of the equity market – or indicative of the recovery’s self-sustaining nature – has now ended. On average, initial claims have now been flat for 8 months. The labor department proclaimed no special (weather-related) factors or states estimating claims last week as total benefit rolls increased by 37,000 to 2.98 million – the first rise since the start of the year.

 

 

Charts: Bloomberg

via Zero Hedge http://ift.tt/1eX0Wca Tyler Durden

 

….

 

0

 

….

 

Well, what did you expect.

However, there's more.

First, the reason why the familiar histogram showing the trading days profits (we would say losses but TBTFs don't lose money in the New Normal) such as the one seen here is no longer present, is because JPM has decided to no longer show it as of this quarter.

Prior to the fourth quarter of 2013, the Firm disclosed a histogram which presented the results of daily backtesting against its daily market risk-related gains and losses for positions included in the Firm’s Risk Management VaR calculation. Under this previous presentation, the market risk related revenue was defined as the change in value of: principal transactions revenue for CIB, and Treasury and CIO; trading-related net interest income for CIB, Treasury and CIO, and Mortgage Production and Mortgage Servicing in CCB; CIB brokerage commissions, underwriting fees or  other revenue; revenue from syndicated lending facilities that the Firm intends to distribute; mortgage fees and related income for the Firm’s mortgage pipeline and warehouse loans, MSRs, and all related hedges; and market-risk related revenue from Asset Management hedges; gains and losses from DVA were excluded.

If JPM had used this old methodology, JPM would have shown the following: "Under this prior measure there were no VaR band breaks nor any trading loss days for the year ended December 31, 2013."

Needless to say, this has never happened before.

So what's wrong with no trading losses: after all a bank works mostly on a flow basis, right, so the customers take on principal risk, right? Wrong.

We already know for a fact that JPM's primary business model until the beaching of the London Whale was abusing excess deposits and using them precisely as prop trading capital. However, for the best picture of the firm's Old Normal trading day win/loss distribution, we go back to JPM's trading day histogram for 2008. This is what it should look like.

 

Perhaps it is out of shame that JPM did not want to disclose the fact that based on an apples to apples methodology the firm no longer loses money. Any money. Ever. So what did JPM do? Why it introduced oranges of course. From the just released 10-K:

Effective during the fourth quarter of 2013, the Firm revised its definition of market risk-related gains and losses to be consistent with the definition used by the banking regulators under Basel 2.5. Under this definition market risk-related gains and losses are defined as: profits and losses on the Firm’s Risk Management positions, excluding fees, commissions, fair value adjustments, net interest income, and gains and losses arising from intraday trading. The following chart compares the daily market risk-related gains and losses on the Firm’s Risk Management positions for the year ended December 31, 2013, under the revised definition. As the chart presents market risk-related gains and losses related to those positions included in the Firm’s Risk Management VaR, the results in the table below differ from the results of backtesting disclosed in the Firm’s Basel 2.5 report, which are based on Regulatory VaR. The chart shows that for the year ended December 31, 2013, the Firm observed two VaR band breaks and posted gains on 177 of the 260 days in this period.

 

In other words when one excludes such trivial things as "f,ees, commissions, fair value adjustments, net interest income, and gains and losses arising from intraday trading" and why one would exclude gains and losses from intraday trading when the bulk of JPM's revenue comes precisely from this is beyond us, JPM did in fact lose money. It just didn't lose money when everything is included.

And that, among all the other well-known reasons, is why Jamie Dimon is once again richer than you.

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

At least 50 are dead, according to Reuters, and hundreds injured as fresh fighting broke out in central Kiev this morning breaking the apparent truce that was in place last night. Who is to blame is up for discussion but of little import in the end as the death toll mounts and live ammunition is being used by the police. A Ukrainian presidential statement said dozens of police were killed or wounded during the opposition offensive hours after Yanukovich and opposition leaders had agreed on a truce… Other witnesses said they saw government snipers firing into the civilian crowds during the clashes.

The Protesters reportedly captured police…

Activists who recaptured the square, known as Maidan or "Euro-Maidan" to the opposition, appeared to lead away several uniformed officers. Dozens of wounded protesters were being given makeshift first aid treatment in the lobby of the Ukraine Hotel, where many foreign correspondents are staying.

 

Reporters said there were bullet holes in the walls and windows of the hotel overlooking the square. Both sides have accused the other of using live ammunition.

 

"Black smoke, denotations and gunfire around presidential palace … Officials panicky," tweeted Polish minister Radoslaw Sikorski to explain the delay in the meeting at Yanukovich's office, a few hundred meters from the square.

But the protesters had a different view…

Protesters were in a truculent mood despite the overnight lull and columns of men, bearing clubs and chanting patriotic songs headed to Independence Square at 8:30 a.m. (0130 ET).

 

"What truce? There is no truce! It is simply war ahead of us! They are provoking us. They throw grenades at us. Burn our homes. We have been here for three months and during that time nothing burned," said 23-year-old Petro Maksimchuk.

 

"These are not people. They are killers. Sanctions will not help. They all should be sent into isolation in Siberia."

The question is – is this Obama's line being crossed?

 

Live Feed:

 

Civilians taking live fire:

 

Other images show a country in collapse

 

via Zero Hedge http://ift.tt/1eX0VVz Tyler Durden

• Facebook CEO Raises Dealmaker Profile With $19 Billion Takeover (BBG)
• WhatsApp’s Founder Goes From Food Stamps to Billionaire (BBG)
• U.S. Feels Putin’s Sharp Elbows in Ukraine (WSJ)
• PBOC Drains Cash as Overnight Rate Slides to Lowest in 10 Months (BBG)
• Fed Puts Rate Increase on the Radar (Hilsenrath)
• Banks Flouting Bonus Rules in Denmark Set to Be Named by FSA (BBG)
• Work Set to Resume on Upgrading Panama Canal (WSJ)
• Euro-Area Recovery Loses Pace as Manufacturing Weakens (BBG) – uh, what recovery?
• Ukraine Exposes EU Policy Disarray (WSJ)
• Diamonds and deals as Danone struggles for China bounce (Reuters)
•  Singapore’s Soaring Land Prices ‘Suicidal’ for Developers (BBG)

 

Overnight Media Digest

WSJ

* The frenzy to acquire fast-growing technology startups reached new heights on Wednesday as Facebook Inc announced its largest acquisition ever, saying it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it.

* When Federal Reserve officials last met at the end of January, they were surprised by the strength of the economy, cheered by the optimism of consumers and convinced they should continue to dismantle the Fed’s economic stimulus campaign, according to an account the Fed released Wednesday.

* In a surprising move, Gap Inc informed its employees on Wednesday that it would set $9 as the minimum hourly rate for its United States work force this year and then establish a minimum of $10 next year.

* Regulators are taking another crack at their effort to keep the web free and open, introducing new rules that would discourage Internet service providers from charging companies to stream their movies, music and other content through a faster express lane.

* Brian Moynihan, the chief executive of Bank of America , received about $12.5 million in restricted stock grants for 2013, according to a regulatory filing.

* Shares of Safeway Inc surged in after-market trading on Wednesday after the supermarket chain disclosed that it was “in discussions concerning a possible transaction involving the sale of the company.”

* Tyler and Cameron Winklevoss, famous for their legal battle with the Facebook founder Mark Zuckerberg, have created a financial index that provides a regularly updated figure for the price of Bitcoin.

* A Brookings Institution study found that income inequality was sharply higher in vibrant cities like New York than in less-dynamic ones like Columbus, Ohio.

 

NYT

* The frenzy to acquire fast-growing technology startups reached new heights on Wednesday as Facebook Inc announced its largest acquisition ever, saying it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it.

* When Federal Reserve officials last met at the end of January, they were surprised by the strength of the economy, cheered by the optimism of consumers and convinced they should continue to dismantle the Fed’s economic stimulus campaign, according to an account the Fed released Wednesday.

* In a surprising move, Gap Inc informed its employees on Wednesday that it would set $9 as the minimum hourly rate for its United States work force this year and then establish a minimum of $10 next year.

* Regulators are taking another crack at their effort to keep the web free and open, introducing new rules that would discourage Internet service providers from charging companies to stream their movies, music and other content through a faster express lane.

* Brian Moynihan, the chief executive of Bank of America , received about $12.5 million in restricted stock grants for 2013, according to a regulatory filing.

* Shares of Safeway Inc surged in after-market trading on Wednesday after the supermarket chain disclosed that it was “in discussions concerning a possible transaction involving the sale of the company.”

* Tyler and Cameron Winklevoss, famous for their legal battle with the Facebook founder Mark Zuckerberg, have created a financial index that provides a regularly updated figure for the price of Bitcoin.

* A Brookings Institution study found that income inequality was sharply higher in vibrant cities like New York than in less-dynamic ones like Columbus, Ohio.

 

Canada

THE GLOBE AND MAIL

* Prime Minister Stephen Harper was again rebuffed in his bid to press U.S. President Barack Obama to approve the controversial Keystone XL pipeline when he raised the issue during a North American leaders’ summit in Toluca, Mexico. The proposed TransCanada Corp pipeline, which would carry Alberta crude to the Gulf Coast, has become a source of tension for the two leaders.

* A Nebraska court decision Wednesday has thrown another hurdle in the path of TransCanada as it pushes for U.S. approval of the Keystone XL pipeline.

* Quebecor Inc has made a C$233 million ($211 million) play on Canada’s wireless industry – buying valuable wireless spectrum in the country’s four most populous provinces – though it is saying little about how it intends to use it.

Reports in the business section:

* Lululemon Athletica Inc says its nearly year-long struggle with bad publicity linked to slowing growth and a messy product recall did not reflect any corporate intent to defraud shareholders, and that an expanded lawsuit suggesting otherwise should be thrown out of court.

NATIONAL POST

* An Alberta human rights adjudicator, facing criticism for ruling in favor of a Czech immigrant who claimed discrimination after failing his Canadian engineering qualification exams, is now under scrutiny for his social media comments on East African politics.

* The Progressive Conservatives want to force Ontario’s public sector unions to compete for contracts to provide government services in order to save taxpayers money.

FINANCIAL POST

* More choice for consumers in three of Canada’s largest provinces could finally be on the way as Quebecor Inc appears poised to mount a big expansion of its wireless business after winning the rights to cellular airwaves outside its home province.

* Shares of BlackBerry Ltd rose as much as 6 percent in extended trading on news that Facebook Inc had acquired one of BBM’s biggest rivals for such a princely sum.

 

China

CHINA SECURITIES JOURNAL

– Gree Electric Appliances Inc of Zhuhai said its parent company, which is majority owned by the Zhuhai State-owned Assets Supervision and Administration Commission, would sell a stake of up to 49 percent in Gree Electric’s real estate unit, Gree Real Estate, to strategic investors via auction, in a sign of local level action to privatise some state-owned assets.

CHINA BUSINESS NEWS

– The State Administration for Industry and Commerce said it would cancel annual examinations of registered enterprises starting March 1. The agency also told branch offices to prepare to publicly disclose information on registered companies for the first time.

– Bank of Beijing Co Ltd said it would cooperate with Xiaomi.com in mobile payment and credit, but media reports before the official company disclosure raised questions about insider trading.

PEOPLE’S DAILY

– Efforts need to be taken to achieve a mature institutional system as well as to improve governing capability, an editorial said.

 

Britain

The Telegraph

LLOYDS TO DOMICILE TSB IN ENGLAND AS SCOTTISH FEARS MOUNT

Lloyds Banking Group has opted to domicile TSB in England rather than Scotland ahead of the new bank’s 1.5 billion pound stock market float.

WAGES RISE BUT STILL BELOW INFLATION

Wages are still failing to keep up with the rising cost of living despite climbing at a faster rate in the final quarter of last year. Average weekly pay including bonuses edged up 1.1 percent to 478 pounds in the three months to the end of December, according to figures from the Office for National Statistics.

The Guardian

EE PLANS TO RETURN 1,000 JOBS TO BRITAIN AND TRIPLE SIZE OF APPRENTICE SCHEME

Communications group EE is to create 1,000 jobs over the next two years and triple the size of its apprenticeship scheme. The company said it was bringing customer service jobs to Britain from overseas centres.

BAE AGREES PRICE ON TYPHOON JET DEAL WITH SAUDI ARABIA GOVERNMENT

The British defence firm BAE Systems has finally agreed to a deal on the price of 72 Eurofighter Typhoon jets it is selling to Saudi Arabia following years of fraught negotiations.

The Times

PRIVATE SECTOR WAGES START TO OVERTAKE INFLATION

Private sector pay rises overtook inflation at the end of last year for the first time since 2008. The proportion of companies planning to freeze pay this year was also forecast to “be the lowest since the start of the financial crisis”.

SPORTS DIRECT STAFF CLOSE TO 77,000 POUNDS BONUS

Staff at Sports Direct are on track to share another multimillion-pound payout after the retailer said it was “very confident” of hitting profit targets in the penultimate year of its bonus scheme.

Sky News

BRITISH GAS PLOTS FIGHTBACK AFTER EXODUS

The UK’s biggest domestic energy supplier is drawing up plans for a price-led assault on its rivals in a bid to win back customers amid the ongoing political row over fuel costs.

HOUSE OF FRASER CHAIR TO QUIT AS FLOAT LOOMS

The chairman of House of Fraser, the department store chain that is seeking to join London’s flotation frenzy, plans to step down if the company returns to the public markets

 

Fly On The Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled include:
Jobless claims for the week of Feb. 15 at 8:30–consensus 335K
Consumer Price Index for January at 8:30–consensus 0.1%
Leading ndicators for January at 10:00–consensus 0.2%

ANALYST RESEARCH

Upgrades

Agnico-Eagle (AEM) upgraded to Buy from Neutral at UBS
American Equity (AEL) upgraded to Outperform from Market Perform at FBR Capital
Barrick Gold (ABX) upgraded to Outperform from Sector Perform at RBC Capital
CAE (CAE) upgraded to Buy from Underperform at BofA/Merrill
CGI Group (GIB) upgraded to Buy from Hold at Jefferies
Carlyle Group (CG) upgraded to Buy from Neutral at Citigroup
DealerTrack (TRAK) upgraded to Outperform from Market Perform at Wells Fargo
DineEquity (DIN) upgraded to Buy from Neutral at Janney Capital
HCI Group (HCI) upgraded to Outperform from Market Perform at JMP Securities
Healthstream (HSTM) upgraded to Overweight from Equal Weight at First Analysis
Infoblox (BLOX) upgraded to Buy from Neutral at Goldman
Nabors Industries (NBR) upgraded to Overweight from Equal Weight at Morgan Stanley
Thermo Fisher (TMO) upgraded to Buy from Neutral at Goldman

Downgrades

America Movil (AMX) downgraded to Underweight from Equal Weight at Barclays
AngloGold (AU) downgraded to Hold from Buy at Deutsche Bank
Apple (AAPL) downgraded to Equal Weight from Overweight at Barclays
Brandywine Realty (BDN) downgraded to Hold from Buy at Cantor
Employers Holdings (EIG) downgraded to Underperform at JMP Securities
Equinix (EQIX) downgraded to Neutral from Overweight at Piper Jaffray
Equity One (EQY) downgraded to Neutral from Buy at ISI Group
Essent Group (ESNT) downgraded to Market Perform from Outperform at JMP Securities
Facebook (FB) downgraded to Equal Weight from Overweight at Evercore
Facebook (FB) downgraded to Hold from Buy at Pivotal Research
Garmin (GRMN) downgraded to Market Perform from Outperform at Wells Fargo
Hecla Mining (HL) downgraded to Neutral from Buy at Roth Capital
magicJack (CALL) downgraded to Perform from Outperform at Oppenheimer
Onconova (ONTX) downgraded to Neutral from Buy at Janney Capital
Onconova (ONTX) downgraded to Neutral from Overweight at Piper Jaffray
Polypore (PPO) downgraded to Market Perform from Outperform at Wells Fargo
Range Resources (RRC) downgraded to Market Perform from Outperform at Bernstein
SM Energy (SM) downgraded to Neutral from Buy at UBS
Terex (TEX) downgraded to Hold from Buy at Stifel
Tesla (TSLA) downgraded to Hold from Buy at Deutsche Bank
The Fresh Market (TFM) downgraded to Hold from Buy at Deutsche Bank
Town Sports (CLUB) downgraded to Neutral from Overweight at Piper Jaffray

Initiations

AGCO (AGCO) initiated with a Hold at Deutsche Bank
Abiomed (ABMD) initiated with a Neutral at BTIG
Allison Transmission (ALSN) initiated with a Hold at Deutsche Bank
Atlas Resource Partners (ARP) initiated with an Outperform at RBC Capital
Booz Allen (BAH) initiated with an Overweight at JPMorgan
Caterpillar (CAT) initiated with a Buy at Deutsche Bank
Cummins (CMI) initiated with a Buy at Deutsche Bank
Deere (DE) initiated with a Buy at Deutsche Bank
Edwards Lifesciences (EW) initiated with a Neutral at BTIG
Genpact (G) initiated with an Overweight at Piper Jaffray
HeartWare (HTWR) initiated with a Neutral at BTIG
Joy Global (JOY) initiated with a Hold at Deutsche Bank
Manitowoc (MTW) initiated with a Hold at Deutsche Bank
Sunshine Heart (SSH) initiated with a Neutral at BTIG
Terex (TEX) initiated with a Buy at Deutsche Bank
Thoratec (THOR) initiated with a Buy at BTIG
Yelp (YELP) initiated with a Neutral at BofA/Merrill

COMPANY NEWS

Facebook (FB) to acquire WhatsApp for $16B, shares fell 3%. Twitter (TWTR) advanced 0.5% following the announcement, while BlackBerry (BBRY) gained about 6%
Facebook believes WhatsApp on ‘clear path’ to having 1B users
Gap (GPS) raised 2014 minimum wage to $9.00/hour for U.S. employees
Safeway (SWY) said in discussions concerning possible sale
Trian Partners: PepsiCo (PEP) should separate into two companies
Tesla (TSLA) sees delivering over 35,000 Model S vehicles in 2014
Tesla CEO Elon Musk said on the Q4 earnings conference call that the Model S has ‘far lower propensity for fire than a gasoline car’
eBay (EBAY) acquired PhiSix, terms not disclosed
Allstate (ALL) announced $2.5B share repurchase plan

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Quanta Services (PWR), Axiall (AXLL), Equinix (EQIX), Vectren (VVC), Blackhawk (HAWK), Portfolio Recovery (PRAA), Curtiss-Wright (CW), Questar (STR), Macquarie Infrastructure (MIC), Brixmor (BRX), Synopsys (SNPS), Trinity Industries (TRN), Jack in the Box (JACK), Avis Budget (CAR), Rubicon (RBCN), Steiner Leisure (STNR), Tesla (TSLA)

Companies that missed consensus earnings expectations include:
Coeur Mining (CDE), Ensco (ESV), Energy Transfer Equity (ETE), Energy Transfer Partners (ETP), Williams Partners (WPZ), Sunoco Logistics (SXL), HealthSouth (HLS), Goodrich Petroleum (GDP), Oil States (OIS), Invesco Mortgage (IVR), Cinemark (CNK)

Companies that matched consensus earnings expectations include:
Williams (WMB), Marriott (MAR), BJ’s Restaurants (BJRI), Acadia Healthcare (ACHC), Denny’s (DENN), DealerTrack (TRAK)

NEWSPAPERS/WEBSITES

Bayer (BAYRY), Novartis (NVS) explore bids for Merck’s (MRK) consumer unit, Reuters reports
Nokia (NOK) reportedly considering buying Juniper (JNPR), combining it with NSN, Reuters reports
Broadcasters (CBS, NWSA, DIS, CMCSA) get first victory over Aereo in Utah federal court, WSJ reports
Wal-Mart (WMT) weighs support for minimum wage increase, Bloomberg reports
Slim (AMX) to exercise NY Times Co. (NYT) warrants this year, Bloomberg reports
Standard Chartered (SCBFF) puts Hong Kong consumer finance unit up for sale, FT reports
Intel (INTC) CEO says relationship with Apple (AAPL) getting ‘closer,’ Apple Insider reports
BAE Systems (BAESY): U.S. unit close to ‘bottoming out’ this year, Reuters reports
Comcast (CMCSA) confident of Time Warner Cable (TWC) acquisition approval, FT reports

SYNDICATE

Berry Plastics (BERY) files to sell 9M shares of common stock for holders
Cytokinetics (CYTK) announces proposed offering of common stock
Diamondback Energy (FANG) files to sell 3M shares of common stock
Kayne Anderson (KYN) files to sell 6.75M common shares
NGL Energy Partners (NGL) files to sell 8.11M common units for holders

via Zero Hedge http://ift.tt/1d4ad2o Tyler Durden

In what has become a quarterly tradition, Wal-Mart once again swung and missed, largely as expected – after all it snowed in the quarter. Just kidding. While the WMT bottom line was more or less in line, with Adjusted EPS of $1.60 beating expectations of $1.59, the world’s largest retailer missed on the top line posting $129.71 billion in Q4 revenue compared to $130.24 billion expected. What also disappointed was the decline in free cash flow which dropped from $12.7 billion in 2012 to $10.1 billion in 2013. What is worse is that the company reported sliding Q4 comp store sales, which declined -0.4% with and without fuel, compared to an expectation of a +0.2% increase, and well below the 0.5% increase a year ago. But the biggest hit was in the company guidance which now expects Q1 and Full Year EPS of $1.10-1.20 and $5.45-$5.55; both below the sellside consensus of $1.24 and $5.55. Alas for Walmart, it is impossible to blame the weather for weaker upcoming results, and so the company didn’t even try. Instead what the company did blame for the current and future weakness is, naturally, the economy, the weak consumer, who is now receiving less government handouts, as well as tighter credit and notably, higher healthcare costs. These combined made Walmart admit that it will be “difficult to achieve the goal we have of growing operating income at the same or faster rate than sales.”

“We expect economic factors to continue to weigh on our outlook,” said Holley. “Some of the factors affecting our consumers include reductions in government benefits, higher taxes and tighter credit. Further, we have higher group health care costs in the U.S. These concerns, combined with investments in e-commerce, will make it difficult to achieve the goal we have of growing operating income at the same or faster rate than sales. In October, we forecasted a 3 to 5 percent net sales increase for fiscal 2015. Given these factors and the ongoing headwind from currency exchange, we expect to be toward the low end of the net sales guidance.

 

“Additionally, all guidance provided today assumes currency exchange rates remain at current levels,” added Holley. “If currency rates remain where they are today, net sales would be negatively impacted by approximately $3.5 billion for fiscal 2015. During the first quarter of this year, we will begin to anniversary the increased costs we incurred last year for FCPA matters, including compliance program enhancements and the ongoing investigations. We anticipate expenses for FCPA matters and compliance-related enhancements to range between $200 and $240 million for fiscal 2015.”

The only good news: unlike everyone else, WMT actually does plan to boost its capex which is precisely what the US economy needs in order to actually grow in reality instead of just on manipulated paper.

The company announced plans to expand its original Walmart U.S. capital plan for this fiscal year by accelerating U.S. small store growth through Neighborhood Market and Walmart Express units.

 

“In October, we announced our plan to grow our U.S. store base with large and small formats,” said Bill Simon, Walmart U.S. president and CEO. “Today, we are expanding on our original plans with additional small stores. We will maintain our projection for supercenter growth with approximately 115 new stores.

 

“Neighborhood Markets continued to deliver consistent solid comp sales growth, and customers appreciate the convenience of our small stores. They are a proven model,” added Simon. “Were also pleased with how well the 20 Express stores are doing, and were expanding our pilot beyond the initial three markets. These small formats are digitally connected and provide customers convenient access to a broad assortment, including fresh, pharmacy and fuel. We will now open between 270 and 300 small format units this year, which will nearly double our fleet and fuel growth as we enter the next generation of retail.”

 

The result of this program enhancement is an increase of $600 million to the companys total fiscal year 2015 forecast for capital expenditures. The updated range is $12.4 to $13.4 billion versus the October forecast of $11.8 to $12.8 billion.

 

The following tables provide an update to the companys previously provided plans for capital expenditures, net retail square footage growth and total U.S. unit growth for fiscal year 2015.

In summary: anyone hoping that WMT will boost their minimum wage is advised not to hold their breath.

via Zero Hedge http://ift.tt/1d3Zy7M Tyler Durden

After learning that it snowed in China this winter following the release of the abysmal February Flash HSBC PMI numbers, we found out that there had also been snow in Europe, following misses across virtually all key French, German and composite PMIs with the exception of the German Services PMI which was the sole “beater” out of 6. To wit:

• Eurozone PMI Manufacturing (Feb A) M/M 53.0 vs Exp. 54.0 (Prev. 54.0); Eurozone PMI Services (Feb A) M/M 51.7 vs Exp. 51.9 (Prev. 51.6)
• German Manufacturing PMI (Feb A) M/M 54.7 vs. Exp. 56.3 (Prev. 56.5); German PMI Services (Feb A) M/M 55.4 vs Exp. 53.4 (Prev. 53.1)
• French PMI Manufacturing (Feb P) M/M 48.5 vs. Exp. 49.6 (Prev. 49.3); French PMI Services (Feb P) M/M 46.9 vs. Exp. 49.4 (Prev. 48.9)

Of course, economic data is the last thing that matters in a manipulated market. Instead, all that does matter is what the USDJPY does overnight, and as we forecast yesterday, the USDJPY 102 tractor beam is alive and well and managed to pull equity futures from a -10 drop overnight to nearly unchanged, despite the now traditional pattern of USDJPY selling during the overnight session and buying during the US session.

Today we get the latest US CPI and weekly jobs report, as well as the Philly Fed business outlook and DoE data.

Headline Bulletin from RanSquawk and Bloomberg

• Risk off sentiment dominated the session in reaction to somewhat hawkish FOMC minutes and worse than expected PMI data from China, Germany and France.
• EUR under broad based selling pressure, with EUR/USD below 1.3700 level, amid a firmer USD and GBP supportive M&A related flow (Vodafone/Verizon).
• Going forward, market participants will get to digest the release of the latest US CPI and weekly jobs report, as well as the Philly Fed business outlook and DoE data.
• Treasuries gain, reversing move seen after Fed minutes which showed participants agreed that tapering will continue, some said “it would soon be appropriate” to change forward guidance, given unemployment rate nearing 6.5%.
• A Chinese manufacturing index fell to the lowest level in seven months, adding to challenges for Communist Party officials grappling with risks to the financial system from trust defaults and soured loans
• Japan’s trade deficit widened to a record in January as surging import costs weigh on Prime Minister Shinzo Abe’s campaign to drive a sustained recovery
• Tepco, operator of the crisis-ridden Fukushima Dai-Ichi nuclear power plant, said it found a new leak near the tanks holding contaminated water
• German manufacturing may expand at a slower pace this month, according to a survey of purchasing managers released today by Markit; an advance reading of the index fell to 54.7 from 56.5 in January
• The factory gauge for the euro region unexpectedly slipped to 53 from 54 in January, while the services measure rose less than estimated to 51.7 from 51.6, Markit said today
• At least seven people died in a new wave of deadly clashes in the Ukrainian capital as a truce declared last night by President Viktor Yanukovych and opposition leaders fell apar
• Markets from Hungary to Poland and Russia are suffering contagion from the violence rocking Ukraine’s capital, sending bond yields higher and currencies lower as the turbulence afflicting developing nations deepens
• Venezuelan protests turned violent again as President Nicolas Maduro addressed the nation and opposition chief Leopoldo Lopez awaited arraignment at military prison for his  role in protest that began last week
• Matteo Renzi, Italy’s prime minister-designate, won over the leaders of a divided parliament by coaxing some rivals into cooperation and keeping his cool under a barrage of insults from others
• Sovereign yields mostly higher. EU peripheral spreads wider. Asian stocks fall, led by Nikkei -2.15%. European stocks, U.S. stock-index futures decline. WTI crude and copper lower, gold higher

Market summary

Heading into the North American open stocks in Europe are seen lower across the board, albeit off the worst levels of the session, as the release of weaker than expected French, German and Chinese PMIs, as well as somewhat hawkish FOMC minutes dampened demand for riskier assets. Nevertheless, the initial bid tone by Bunds was not sustained and the uptick observed in the first few hours of trade was gradually pared amid the absorption of supply from France and Spain. Still, worse than expected macroeconomic data from Eurozone weighed on EUR across the board, which also saw the major pair move below the key 1.3700 level.

US Event Calendar

• 8:30am: CPI m/m, Jan., est. 0.1% (prior 0.3%); CPI Ex Food and Energy m/m, Jan., est. 0.1% (prior 0.1%);
• 8:30am: Initial Jobless Claims, Feb. 15, est. 335k (prior 339k); Continuing Claims, Feb. 8, est. 2.970m (prior 2.953m)
• 8:58am: Markit US PMI Preliminary, Feb., est. 53.6
• 9:45am: Bloomberg Economic Expectations, Feb. (prior -5); Bloomberg Consumer Comfort, Feb. 16 (prior -30.7)
• 10:00am: Philadelphia Fed Business Outlook, Feb., est. 8.0 (prior 9.4)
• 10:00am: Index of Leading Economic Indicators, Jan., est. 0.4% (prior 0.1%)
• 10:00am: Mortgage Delinquencies, 4Q (prior 6.41%) MBA Mortgage Foreclosures, 4Q (prior 3.08%)
• 11:00am: POMO – Fed to purchase $2.25b-$2.75b in 2021-2024 sector

Asian Headlines

Chinese HSBC Flash Manufacturing PMI (Feb) M/M 48.3 vs. Exp. 49.5 (Prev. 49.5); 7 month low. (BBG)
– Employment sub index 46.9, lowest since February 2009.

HSBC said the building up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. (RTRS)

Japanese Trade Balance (JPY)(Jan) M/M -2790.0bln vs. Exp. -2487.0bln (Prev. -1302.1bln, Rev. -1304.2bln) (BBG)
– Exports (Jan) Y/Y 9.5 vs. Exp. 12.7 (Prev. 15.3)
– Imports (Jan) Y/Y 25.0 vs. Exp. 22.7 (Prev. 24.7)

EU & UK Headlines

Eurozone PMI Manufacturing (Feb A) M/M 53.0 vs Exp. 54.0 (Prev. 54.0)
– Eurozone PMI Services (Feb A) M/M 51.7 vs Exp. 51.9 (Prev. 51.6)

German Manufacturing PMI (Feb A) M/M 54.7 vs. Exp. 56.3 (Prev. 56.5)
– German PMI Services (Feb A) M/M 55.4 vs Exp. 53.4 (Prev. 53.1)

French PMI Manufacturing (Feb P) M/M 48.5 vs. Exp. 49.6 (Prev. 49.3)
– French PMI Services (Feb P) M/M 46.9 vs. Exp. 49.4 (Prev. 48.9)

Even though Bund futures have come off the best levels of the session following the absorption of supply from Spain (EUR 5.018bln vs. Exp. EUR 4-5nln) and France (EUR 7.983bln vs. Exp. EUR 7-8bln), peripheral bond yield spreads remained wider, with SP/GE 10s underperforming amid somewhat lacklustre bidding.

According to the UK Chancellor Osborne, Britain’s economic recovery is not secure because it is too dependent on the consumer. Osborne adds that businesses are not investing or exporting enough. (Telegraph) The comments come ahead of the UK Budget next month, where Osborne is now expected to reaffirm his commitment to cut the UK deficit despite recent figures showing better than expected growth.

US Headlines

Fed’s Williams (Non-Voter, Dove) said he would prefer more verbal guidance over 6.5% unemployment threshold. Williams added that the economy is looking “really solid” for this year and “hurdle is pretty high” for changing taper pace this year. Williams added he expects Fed funds rate to stay at zero well into 2015 and that policy needs to
remain highly accommodative. (BBG)

Equities

Reversal by Bunds following the absorption of supply from France and Spain also supported the recovery in European equities this morning, which remain lower after coming under pressure in reaction to the release of weaker PMI from China and somewhat hawkish FOMC minutes. In terms of notable movers, London listed BAE Systems (-8.7%) is among the worst performing stocks after forecasting lower 2014 earnings pre-market.

In terms of US specific commentary, Facebook announced that it is to buy mobile message app WhatsApp for USD 19bln. According to reports, WhatsApp stock is to be cancelled in exchange for USD 12bln Facebook stock and USD 4bln cash.

FX

EUR came under broad based selling pressure following the release of weaker than expected PMI data from France and Germany, with EUR/GBP also weighed on by touted M&A related flow (Vodafone/Verizon). At the same time, despite the risk off sentiment, USD/JPY and EUR/CHF managed to recover off the lowest levels of the session, which indicates that there is scope for the sentiment to reverse. Looking elsewhere, spot RUB, EUR/HUF and EUR/PLN remain bid amid ongoing unrest in Ukraine, which risks causing capital flight in other neighbouring Eastern European states.

Commodities

Iran and the P5+1 group have reached an agreement on an agenda for negotiations over Iran’s nuclear programme and will meet for further discussions next month in Austria, according to Iranian officials. (RTRS)

Should these reports be confirmed by Western powers, it would indicate another step forward in solving the trade disputes with Iran, despite the US previously warning that a final agreement may not be possible.

Analysts at UBS hiked its forecast for average gold and silver prices, citing a shift in investor sentiment for the short term. The banks’ forecast for gold was raised 8.3% to USD 1,300 per oz in 2014, whilst leaving its 2015 forecast unchanged. Silver average price estimates were raised to USD 22.30 per oz, up from USD 20.50.

Morgan Stanley said the cost to fill US gas stores have been overestimated and gas should trend lower, possibly falling under USD 4 in Q3. (BBG)

Analysts at SocGen see moderate downside risk to its 2014 crude forecasts. (BBG)

via Zero Hedge http://ift.tt/1jfCs36 Tyler Durden

Today’s AM fix was USD 1,313.75, EUR 959.22 and GBP 788.90 per ounce.

Yesterday’s AM fix was USD 1,318.75, EUR 959.09 and GBP 791.14 per ounce.  

Gold fell $11.80 or 0.89% yesterday to $1,310.20/oz. Silver dropped $0.52 or 2.37% at $21.44/oz.

Gold and Silver Cross Currency Rates – (Bloomberg)

Gold is marginally higher in London as investors continue to digest the recent weaker U.S. data and continuing ultra loose monetary policies. Gold futures dropped 0.8% yesterday as minutes from the last meeting of the U.S. Federal Reserve suggested that the Fed will not scale back plans to reduce their monthly multi billion dollar bond purchases.

More data overnight confirms that gold is flowing from west to east and from the western banking system into strong store of wealth hands in Asia. This includes Asian investors and store of wealth buyers and indeed Asian central banks including the People’s Bank of China.

Asia accounted for more than 80% of Swiss gold and silver bullion coin and bar exports in January, the Swiss Federal Customs Administration said today in an e-mailed report covered by Bloomberg.

Interestingly, as suspected most of the bullion exported to Asia from Switzerland came from London.

As holdings in gold-backed funds that are mostly listed in the U.S. and Europe declined, lower prices led to demand from Asia in a further sign of bullion flowing from the west to east. While the majority of the demand is from Asia itself, there is a percentage of the flow that is of western investors seeking to own gold outside the banking system, in what they perceive to be safer jurisdictions in allocated gold accounts in Hong Kong and Singapore.

Hong Kong was the top destination of Swiss bullion exports at 44% on a value basis, with India at 14%, the Bern-based customs agency said in its first breakdown of the gold trade data since 1980.

Singapore accounted for 8.6% of exports, the United Arab Emirates 7.9% and China 6.3%, according to Bloomberg.

Switzerland imported 4.32 billion Swiss francs ($4.87 billion) of gold and silver bullion from the U.K., or 60% of total inbound shipments, according to the report. The U.S. was second at 4.9%, Italy at 3.8%, Germany at 2.8% and Thailand at 2.5%, the data showed.

Webinar: Gerald Celente On Strategies For Protecting Your Wealth In 2014 And Beyond

Join Gerald Celente on this broadcast today as he examines the opportunities in 2014 and in the coming uncertain years.

Gerald Celente needs little introduction: Founder of The Trends Research Institute in 1980, Gerald Celente is a pioneer trend strategist. He is author of the national bestseller Trends 2000 and Trend Tracking (Warner Books) and publisher of the internationally circulated Trends Journal newsletter.

Celente’s Trends Research Institute has been featured on Oprah Winfrey amongst hundreds of media interviews and credited with forecasting many major geopolitical and economic trends.

These include the “Panic of ’08,” the collapse of the Soviet Union, the dot-com bust, the 1997 Asian currency crisis, the 1987 world stock market crash, increased terrorism against America, “Crusades 2000,” and the quagmire in Iraq … before war began and the last two recessions.

 

This webinar is scheduled for today, February 20, 2014, 1:00 PM – 2:00 PM GMT and will be moderated by Mark O’Byrne, Head of Research at GoldCore.

via Zero Hedge http://ift.tt/1jfCs30 GoldCore

Submitted by Brandon Smith of Alt-Market.com,

As I have confessed in the past, in my early years I found myself active in the Democratic Party and the general liberal methodology. I had no understanding of the concept of the false left/right paradigm. I had no inkling of the dangers of globalism and central banking. I had no concept of decentralization or non-participation. I had never even heard of libertarianism. I knew only that George W. Bush was a criminal (and I was right), but the problem went far deeper than the GOP. I was astoundingly ignorant of the bigger picture.

However, what I did have going for me was an almost violent sense of nonconformity. I hated collectivists, yet I found myself surrounded by them while working within the leftist culture. It was the insanity of self-proclaimed “liberals” that taught me the true nature of the facade of politics. When I realized that the Democrats were essentially the same corrupt entity as the neoconservatives, everything in my life changed.

One aspect of liberalism with which I am now very familiar is political correctness. I didn’t understand it at the time, not until I stepped outside the cultism of it and looked in from a wiser place. It always bothered me, but I couldn’t quite grasp why until later. Then, it hit me like a revelation. Political correctness was not a political ideology. No, it was a religion, a full-fledged spiritual con, a New Age ghetto of frothing mishmash that is sociological voodoo. And the leftists were eating it up like steak night at an all-you-can-eat buffet.

These people were rationally retarded. Every idea they proposed they merely parroted from books and articles they had read. They were like malfunctioning automatons trapped in a cycle of discontented social criticism. Their desperation to invent meaning in the midst of their irrelevant lives made me feel ill. If they could not find a legitimate cause to champion, they would create one out of thin air and defend it relentlessly, regardless of how shallow it truly was.

When I outline my analysis of economic destabilization within the United States or I write about the rise of the police state, I am driven by a fundamental sense of concrete concern. There are indeed real problems in the world, swirling in a storm of obvious factual conflicts. But the warriors of the PC culture don’t see any of it. Rather, they fantasize about injustices that don’t exist, trespasses that are ultimately fictional. They imagine themselves champions of some greater purpose that, in the end, doesn’t matter.

Recently, I read a news story about a “transgendered teen” in Maine. When the boy was in the fifth grade, he decided to dress as a girl and demanded to use the girl’s bathroom at his public school, despite having the biological apparatus of a male. This story was international news, folks! Why? I can’t say, except that the mainstream media have made a point to focus on “gender optional” issues as if they represent some kind of civil rights uprising.

The issue perfectly illustrates the disturbing nature of politically correct culture.

Teachers at the school did not deny the student the use of restroom facilities. In fact, they allowed him to use the teacher’s bathrooms to avoid any confusion. The Maine Supreme Judicial Court, on the other hand, had other ideas. It ruled that the school’s refusal to allow the boy to use the girl’s facilities constituted a violation of the State’s anti-discrimination law. The ruling has been heralded as a massive victory for the politically correct narrative.

Now, let me make one thing clear: I could not care less about this boy’s sexual orientation (if he even has one). I do think the very idea that a fifth-grader at about the age of 10 is sexually conscious enough to develop a sense of gender dissuasion is absurd. Children who haven’t even experienced puberty yet, proclaiming they are transgendered? Utter nonsense. I find it far more likely that the student’s PC-obsessed parents influenced him to come to such a decision despite his naivety.

That said, a person’s sexual proclivities are not my concern. In fact, I have no interest whatsoever in the infatuations of any individual. That is a personal matter. I do not judge such people on their attractions. I do, though, judge people on how they handle their infatuations. What happens when someone wears his sexuality on his shoulder like a fashion accessory? Why is that even necessary? Is it not rather mentally backward for any person to base his public persona solely on his carnal compulsions? Do I dance around on the sidewalk bellowing to strangers how much I love the curves of women? Do I require a sociopolitical legal apparatus to vindicate my existence? Do I feel the need to shame gay people into publicly embracing my straight man’s libido? No, I do not.

The PC culture demands that we, as individuals, openly accept the sexual orientations of anyone and everyone; otherwise, we are labeled prejudiced monsters. It is not enough that we object in a logical manner. No, we must fall to our knees and thank the stars for the very existence of gender chameleons.

In the end, the psychological gender position of any particular person does not overrule his biological features. A child with a penis is a boy. Period. He will never be a girl. Ever. Not without surgical aid. And even then, he will never have the ability to give birth, which is the very hallmark of femininity. (Sorry, feminists, but that’s how it goes.) A boy, no matter his mental orientation, does not belong in a girl’s lavatory. The privacy rights of the girls outweigh the gender confusion of the boy. If I were a girl (why not play some gender games since everyone else is), I would beat the living hell out of any boy gallivanting in a dress in a bathroom I was using and make sure he never dared come back. And, by extension, if I were a rather mischievous boy with an aptitude as a peeping tom, why not dress up in a tutu in the hopes of getting a glimpse of the forbidden while being legally protected by the State?

The warped conflicts that arise, though, are not the creation of the child in question. A fifth-grader has no concept of gender rights or political correctness. This issue was a creation of the PC cult and its acolytes. These people don’t actually care about the children they involve in their legal dramas. They exploit them, with every intent to abandon them once they have chiseled their agenda into the gray matter of every American.

What truly motivates these people? Why do they do what they do? I think my experience with leftists makes me a well-positioned observer of the psychology of the culture. Here are the hidden thought processes I have witnessed while dealing directly with the PC army.

PC Elitism

One of the unfortunate side effects of religion is that proponents often use it as a means to feel superior to others. I have seen it in Christianity as much as I have seen it in any other belief system. It is the primary reason why I refuse to subscribe to organized and establishment-sanctioned spiritualism. Religion should be a personal experience first and foremost, not an easy way to fit in with the collective. Communing with others who share one’s beliefs should be secondary. Hypocritically, politically correct adherents often criticize Christians for their collectivist elitism while suffering from the same problem themselves.

PC culture allows participants to pretend as though they have some greater understanding of the world, an elevated knowledge of life that makes them superior to the uninitiated. It is important to understand that when a person pursues the methodology of zealotry, he doesn’t do it to make the world a better place; he does it to feel better about his place in the world.

The politically correct are so violent in the assertion of their ideals because they crave the subjugation of the mainstream and a recognition of their “rightness.” They don’t want people to “accept” their beliefs as tolerable. They want people to adore their beliefs as supreme. They want every man, woman and child to reinforce their ideals without question.

The malfunction of this philosophy is that zealots are never finished. They must always find new ways to feel superior to others. So they continuously engineer new taboos and new sins, no matter how ridiculous, so that they can forever look down upon the laymen. Because of this, there will never be an end to PC law. It will go on forever, labeling numerous social interactions and stances as “aberrant” — never satiated and never satisfied.

PC Futurism

The young are always searching for ways to feel wiser than the old. This is just the natural way of things, at least in America. Now, I know from ample experience that age does not necessarily denote intelligence. I’ve met plenty of idiotic people who had decades of time to learn from their mistakes but didn’t. But the young, many of whom lack time and struggle, have a terrible tendency to either pretend that they have “seen it all.” Or they pretend that the very atmosphere of the day somehow gives them a greater insight than generations past. The reality is that most of them know very little of import. This attitude comes from a philosophy called “futurism” (popular with the Nazis and the Soviets), which holds that all the beliefs and discoveries of the past mean nothing compared to the beliefs and discoveries of the present. This ideology is alluring to the young, because it gives them a way to feel intellectually dominant over older and more “ignorant” people who are “behind the times.”

Political correctness is basically an appendage of futurism. By labeling elders as social bigots and products of a barbaric era who don’t understand the “lingo” of the PC elite, liberalism draws in and collectivizes the fledgling left. Younger generations are given a cultural avenue toward high priesthood, a right of passage usually reserved for the aged. They get to skip ahead past all the trials and tribulations of life and announce their deep awareness of the so-called greater good.

The values of forefathers past become archaic scrawlings of racist and prejudiced cavemen who could never appreciate the “brilliance” of today’s academia. The inherent freedoms of natural law that have existed since time began are nothing more than obstacles to them, standing in the way of a new and better world where they have somehow outsmarted human instinct and centuries of history.

PC Collectivism

The very foundation of political correctness is solidified in a desire for the perpetual reinforcement of one’s worldview. PC people need every other person around them to sing the praises of their pure virtues. If I happen to disagree with the idea of gender bending, for instance, as some kind of socially persecuted subculture that needs overt government protection, then I am, of course, labeled a hateful Neanderthal. If I stand in opposition to the concept of victim group status in general, in which the state demands that designated “minorities” be given special treatment regardless of the status of the individual, then I become a racist political fossil ignorant of the bigger picture. You see, if you disagree with PC culture in any way (even if that way is rational), you cannot win. To refute political correctness is to refute the god of the New Age; and to refute their god, even with concrete logic, is blasphemy.

This kind of blind faith in political correctness lends itself entirely to collectivism. The average person begins to think that without a viable appreciation of the philosophy, he may be left out or cast aside. Most people do not know how to function without the approval of others. Therefore, even if a father happens to have a healthy skepticism over the idea of a make-up wearing fifth-grade boy waltzing into his daughter’s school bathroom, he is likely to keep his mouth shut, because to speak out would be a risk to his position within the group, or the community.

PC Control

The prevalence of PC philosophy is not subtle. I have always found it interesting that political correctness seems to consistently support the demands of the state. Our system smothers children with it in public school, our workplaces are rife with the propaganda for fear of lawsuits and colleges are veritable breeding grounds for the PC oligarchy. Politically correct culture goes out of its way to constantly test others to make sure they are also true believers. This is exactly what is going on in the following interview with Jerry Seinfeld, who, to his credit, dashes the nonsense to the ground.

 

The truth is some discrimination is healthy, and some discord is needed for a society to remain balanced. As long as we don’t allow our disagreements to end in the physical harm of others, then those disagreements are our natural-born right. If you are a racist (this goes for non-whites as well), that’s fine. Just don’t act out your racism in a violent way around me, or I will have to put you down permanently. If you have a distaste of homosexuality (or asexuality, as seems popular nowadays), then whatever, I don’t care. You shouldn’t have to have organizations like GLAAD (formerly the Gay & Lesbian Alliance Against Defamation) in your face attempting to force you to put on a smile for gaydom, coordinate man-on-man heavy-petting protests in your favorite restaurant (Chick-fil-A) while you’re trying to eat a damn sandwich, push boys into the girl’s bathroom, or trying to shut down your favorite TV shows because the stars happen to share your views (“Duck Dynasty”).

Now, PC proponents will argue that the very existence of bigotry does harm to society as a whole, and it must be educated out of individuals. Frankly, I see that kind of utopian fascism as a far greater threat to society as a whole than bigotry ever will be.

Look at where we are today because of the PC nightmare! We have a Nation on the verge of industrial and economic collapse, partly because companies are forced by law or persuaded by government subsidies to hire people with victim group status, even if they are unqualified, while ignoring highly qualified people who just happen to have lighter skin. We have children not even old enough to discover their own inherent character being clinically diagnosed with “gender dysphoria” by a psychiatric community of quacks, which conjured most PC terminology out of thin air. We have boys who are told that they are stunted for acting out their natural male impulses and girls who are told that true femininity is weakness and that they should act more masculine. We have a mainstream culture that coddles and infantilizes young adults, young girls who think promiscuity is the key to womanhood and that motherhood is disgusting (which I find rather ironic), and young men who have no testicular fortitude and no clue how to take charge of their own lives.

The American family unit has been completely destroyed. We have women who are ashamed to set aside careers to raise children because feminism frowns upon “breeders” who bring down the whole gender. We have men who abandon their children and refuse to take responsibility. And we have a weak-minded population addicted to collective affirmation and unwilling to think outside the box for fear of being shunned and shamed. Honestly, I can’t see a single redeeming quality to political correctness other than the fact that those people who espouse it do so loudly and obnoxiously, making it easier for me to identify and avoid them or to take special note of them as an obvious zombie threat in an America swiftly declining into mundane oblivion.

via Zero Hedge http://ift.tt/1d2wvS4 Tyler Durden