House Votes On The $1.1 Trillion Cromnibus Bill: Live Webcast

As is widely known by now, in a largely token vote, since it has the blessing of the White House, in a few moments the House will vote on H.R. 83, the bill containing $1.1 trillion in appropriations to fund the government through 2015, aka the “Cromnibus”. As noted previously, among the provisions in the bill is Citi-directed watering down of Dodd-Frank by way of a Swap “push-out” provision, which as we explained over the weekend, would put taxpayers on the hook for derivative losses as it “would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. — potentially putting taxpayers on the hook for losses caused by the risky contracts.”

 

 

Screen Shot 2014-12-05 at 3.32.12 PM

Then again, since we are talking about some $303 trillion in US-based derivatives (at just the top 25 US holding companies alone), the bottom line is that it really doesn’t matter where the swaps are traded from: if and when these goes bad, it doesn’t matter if they are located in a FDIC-insured shell or somewhere else: the entire system will collapse all over again, unless it gets yet another multi-trillion Fed bailout.

Those wishing to follow who votes for and against the Spending Bill may do so on C-Span after the jump.




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Treasury Market Liquidity Crashed To 2014 Record Lows During Today’s 30Y Auction

Golf-clap, Janet… you really screwed this one up…

 

 

With RBS exiting the “dead” Japanese bond market, is the US Treasury market next for the death of liquidity?

 

Source: @NanexLLC




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Students Demand Censorship of George Will, Won’t Listen to Someone They Don’t Like

MSUAnother day, another group of
insolent students demanding that their university censor a
prominent speaker and deprive the rest of campus of the opportunity
to learn from him.

George Will is slated to give Michigan State University’s fall
semester commencement address on December 13th and receive an
honorary degree from the university. But because one of the
thousands of columns he has written in his life
was deemed controversial
by those on the far-left side of the
campus sexual assault issue, some students want him disinvited from
campus.

Will strikes me as conservative with some good libertarian
instincts; as such, I don’t agree with everything he says. I will
note, however, that he has recently made very smart contributions
to the cause of criminal justice reform. In a
column lamenting the brutality
that caused Eric Garner’s death
and the miscarriage of justice evident in the grand jury’s decision
not to indict, Will wrote, “Overcriminalization has become a
national plague.” He explicitly described solitary confinement as
“torture.”

(Perhaps he should have just written #BlackLivesMatter and
stopped at that—the
only parlance
 deemed acceptable by campus crusaders.)

Of course, whether one agrees with an invited speaker entirely,
partly, or not at all is beside the point. In fact, a strong case
can be made that it is even more important to hear from
notable people whose views differ from one’s own—especially on
campuses, where opportunities to hear opinions critical of
liberalism are in short supply.

Some students, however, took a different view, according to

Bloomberg
:

About 30 protestors gathered in the administration building and
delivered a petition calling for Will’s invitation to be rescinded,
said Jason Cody, a spokesman for the university in East
Lansing.

MSU President Lou Anna Simon said in astatement yesterday that Will was picked
because he would offer a different viewpoint from another speaker,
documentary filmmaker Michael Moore, and that Will was chosen long
before his controversialcolumn was published
on June 6. Will wrote then that colleges are learning “that when
they make victimhood a coveted status that confers privileges,
victims proliferate.”

“We refuse to be silent,” said Emily Kollaritsch, 21, one of
about six or seven of the protestors who went into Simon’s office.
“We’re going to have our voices heard.”

More than 70,000 people signed the petition, started by the
women’s rights advocacy group UltraViolet, which has called Will a
“rape apologist.”

MSU President Lou Anna Simon, at least, has refused to disinvite
Will, noting that “Great universities are committed to serving the
public good by creating space for discourse and exchange of ideas,
though that exchange may be uncomfortable and will sometimes
challenge values and beliefs.” This sets her apart from some other
university presidents who caved under pressure to disinvite
controversial speakers.

Indeed, “disinvitation
season
,” as Foundation for Individual Rights in Education
President Greg Lukianoff calls it, shows no sign of winding down.
The problem of universities cancelling speakers on behalf of
censorship-inclined students may even be
worsening
.

If a liberal arts education has any purpose, it is to teach
students the importance of Enlightenment values like free speech,
tolerance, and rational debate. When students demand that
authorities silence dissenting views, they unintentionally
demonstrate that they don’t deserve the diplomas they are about to
receive.

Related:
As I argued yesterday
, college has become bumper bowling and
degrees are participant ribbons.

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“We Tortured Some Folks…But” Historic CIA Mea Culpa Press Conference – Live Feed

CIA Director John Brennan is due to make a rare public statement and answer press questions with regard the Senate Intelligence Committee’s report on the CIA’s use of torture.

Mike Krieger summed it all up perfectly…

 

NBC News Live Feed: Brennan is due to speak at 1330ET…




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Scorching 30 Year Auction Sees Surge Of Indirect, Direct Bidders; Dealer Take Down Lowest On Record

Once again, following a strong 10 Year auction, today’s 30 Year reopening of CUSIP RJ9 was an absolute stunner, and with the When Issued trading at 2.875%, the high yield was a very much scorching 2.848%, stopping through nearly 3 bps through the WI, and the lowest 30 Year auction yield since November 2012. The reason for this impressive surge in last minute interest: a record low takedown by Dealers who got just 25.9% of the auction as they were pushed out by the other two bidding groups. Sure enough, there was an absolute scramble by Indirects (49.8%) and Directs (24.3%) both of which received, logically, a record high takedown for a 30 Year.  And finally with the Bid to Cover soaring to 2.762, this was the highest since January of 2013.

Overall, while stocks continue to do their thing, tracking every move in the USDJPY, the smart money continues to rush into deflation protection, and buy every piece of “high quality collateral” they can get their hands on. Thanks GPIF.

 

And 30Y is rallying off the back of this…

 

And something curious: as Nanex pointsout, the liquidity during the auction (at 1:00PM Eastern) just hit an all time low.




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Tired: “America is great because she is good.” Wired: “America is AWESOME” because TORTURE

Via Raw Story comes this pretty amazing colloquy from a couple
of days back on Fox News Channel’s Outnumbered. That’s

the daytime show
in which four lovely ladies and “one lucky
guy” chew over the news of the moment like a pitbull on a raw
steak.

The topic is the Senate torture report and
the guy is Jesse Watters, the Fox News contributor best known for
his reports on The O’Reilly Factor. Watters pronounces
that he doesn’t even want to know what’s in the report because
“people do nasty things in the dark.” And besides, what is it that
Bill Clinton used to say? Oh yeah: There’s nothing new here:

“They Senate Democrats, they’re just trying to get one last shot
in at Bush before they go into the minority!” the correspondent
opined. “And they didn’t even interview any of the CIA
interrogators to do the report.”

“It’s kind of like how Rolling Stone does
their reporting, they only get one side,” he added, referring to a
controversial report about an alleged gang rape at the University
of Virginia. “You know, the Democrats didn’t care about
transparency when they were destroying hard drives at the IRS.”

Watters’ whinging is outdone by Outnumbered and Five co-host
Andrea Tantaros, who pulls out all the patriotic stops short of
singing the national anthem:

“The United States of America is awesome, we are awesome,” she
said. “But we’ve had this discussion. We’ve closed the book on it,
and we’ve stopped doing it. And the reason they want to have this
discussion is not to show how awesome we are. This administration
wants to have this discussion to show us how we’re not
awesome.”

The lone voice of reason and skepticism toward unchecked
government power? That would be The Independent‘s Kennedy,
who pushes back on the pro-torture, pro-opaque members of the
panel. She’s the real patriot in my book.

The whole segment is worth watching but the fireworks begin
around 2.14.

Related:
“After torture report, our moral authority as a nation is
gone.”

And hell, it’s awards season, so take a minute to enjoy “Which
President Bombed Iraq Best?”:

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Paying down the debt is now almost mathematically impossible

US repay debt 2 Paying down the debt is now almost mathematically impossible

December 11, 2014
Santiago, Chile

Exactly 199 years ago, in 1815, a “temporary” committee was established in the US Senate called the Committee on Finance and Uniform National Currency.

It was set up to address economic issues and the debt accrued by the US government after the War of 1812.

Of course, because there’s nothing more permanent than a temporary government measure, the committee became a permanent one after just one year.

It soon expanded its role from raising tariffs to having influence over taxation, banking, currency, and appropriations.

In subsequent wars, notably the American Civil War, the Committee was quick to use its powers and introduced the union’s first income tax. They also detached the dollar from gold to help fund the war.

This was all an indication of things to come.

Over the subsequent decades there was a sustained push to finally establish the country’s central bank that will control money and credit, as well as institute a permanent income tax to feed the expanding aspirations of government.

They succeeded in 1913 when the Federal Reserve Act was passed and the 16th Amendment ratified, binding the country in the shackles of central banking and taxation of income.

Over the century that followed, the US has gone from being the biggest creditor in the world to its biggest debtor.

Decades of expanding government programs, waste, endless and costly wars, etc. have racked up such an enormous pile of debt that it has become almost impossible to pay it down.

A lot of folks don’t realize that, since the end of World War II, the US government’s total tax revenue has been almost constant at roughly 17% of GDP.

In other words, even though the actual tax rates themselves rise and fall, the government’s ‘slice’ of the economic pie is almost always the same—17%.

I’ve worked out a mathematical model which shows that, even with absurd assumptions (7%+ GDP growth for years at a time, low interest rates, etc.), it is simply not feasible for the US government to ‘grow’ its way out.

Default has become the only option. And that could mean a number of things.

They could default on their creditors (other governments like China who loaned money to the US government). But this would spark a global financial and banking crisis.

They could default on the Federal Reserve, which owns trillions of dollars of US debt. But this would create an epic currency crisis for the US dollar.

They could also default on their obligations to their citizens—primarily to future beneficiaries of Social Security (who collectively own trillions of dollars of US debt).

Or they could choose to default on their obligations to every human being alive who holds US dollars… and engineer rampant inflation.

None of these is a good option. And simply put, the US government has reached a point of no return.

I aim to demonstrate this to you in today’s video podcast episode. It’s a very sobering realization. Join me to see it for yourself: http://www.sovereignman.com/podcast/can-the-us-ever-pay-off-its-debt-video-15730/

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New York AG Wants to Take Power to Prosecute Cops Away From DAs

Schneiderman with BrattonNew York’s Attorney General Eric
Schneiderman, a Democrat, was first elected in 2010 and the grand
jury in the Eric Garner case wasn’t the first to fail to indict a
New York City police officer accused of killing someone they had
targeted. Nevertheless, with the right amount of mainstream media
attention, some politicians are willing to jump.

Schneiderman now wants Gov. Andrew Cuomo, another Democrat first
elected in 2010, to give him the power to oversee all prosecutions
of police officers accused of killing “civilians.” In a
letter to Cuomo
, Schneiderman argues the governor is permitted
by state law to place any kind of criminal prosecution under the
purview of the Attorney General, bypassing local District
Attorneys, and that bills to that effect have been introduced in
the state legislature since as early as 1999, to no avail.

“The crisis of confidence is long in the making and has deep
roots,” wrote Schneiderman, identifying a large part of the
problem: “A common thread in many of these cases is the belief of
the victim’s family and others that the investigation of the death,
and the decision whether to prosecute, have been improperly and
unfairly influenced by the close working relationship between the
county District Attorney and the police officers he or she works
with and depends on every day.”

The attorney general stressed that the “majority” of prosecutors
are fair in their disposition of such cases and that instead it’s
the lack of public confidence that’s the problem. He therefore
asked Cuomo for authority:

to (1) investigate the circumstances surrounding the commission
or alleged commission by any police officer or peace officer in the
State of any act or acts, committed while the officer is engaged in
the performance of his or her official duties, that result in the
death of any unarmed person other than a fellow law enforcement
officer so engaged: and (2) where warranted, criminally prosecute
the officer for such acts as provided in those subdivisions.

Schneiderman writes that he doesn’t want to “compromise” any
ongoing investigations and so only wants the authority for new
cases, and only until the legislature acts on the issue.

No word yet from Cuomo on whether he’ll act on Schneiderman’s
request. A Republican state legislator in Missouri wants to

introduce similar legislation
which would transfer the power to
prosecute cops for on-duty deaths to the attorney general. Cuomo,
meanwhile, is
also considering
a bill that passed the Democrat-controlled
legislature handily earlier this year that would give police unions
more power to determine the disciplinary regime under which cops
fall.

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A Gentle “Deja Vu” Reminder For Today’s Energy Stock Traders

While Kyle Bass once remarked thatthe brevity of financial memory is about two years,” it appears for today’s energy stock traders the period of goldfish-like memory is a mere two days… As the following chart suggests, the ‘bounce’ in XLE – the S&P Energy Sector ETF – is entirely decoupled from credit’s uglier-and-uglier reality (just as it did on Tuesday, only to crash again yesterday).

 

 

Trade accordingly…

Chart: Bloomberg




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