Author: admin

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

What has been occurring over the past several years is not a recovery, rather, it’s a painful transition of the U.S. into a neo-feudal society. Earlier this week in the post, Welcome to the Recovery – U.S. Child Homelessness Hits Record as Poverty in Mass. is Highest Since 1960, I wrote:

While the general population is aware something is seriously wrong, people remain extremely confused about the root of the problem. This is because what’s happening all around us isn’t socialism and it isn’t free market capitalism. It is actually a return to something much more ancient and much more oppressive. It is a return to serfdom, neo-feudalism and oligarchy.

Well now we have definitive proof. It can’t get any more in your face than this.

From MarketWatch:

WASHINGTON (MarketWatch)—Faced with an increasing number of White House intrusions that led to the resignation of a Secret Service director, a congressman on Wednesday suggested that maybe a moat should be erected around the president’s home.

 

The suggestion was made by Rep. Steve Cohen, a Tennessee Democrat, at a House Judiciary Committee hearing.

 

With hand gestures, Cohen suggested a moat roughly six-feet wide may be “attractive” and “effective.”

 

Joseph Clancy, the acting director of the Secret Service, didn’t dismiss the suggestion out of hand.

 

“Sir, it may be,” he said. Clancy said the Secret Service and the National Park Service were discussing ways to ensure security along with access to the White House for the American people.

In case you aren’t familiar with Steve Cohen, I covered his fascist tendencies in the past. Recall the post: Rep. Steve Cohen Calls Tea Party Republicans “Domestic Enemies” on MSNBC.

Here’s the moat clip:

We wonder where he got that idea from?

Moat? RT @fiatcurrency: Snipers, Guards, Fences Not Enough: Secret Service Mulls Security Checkpoints Outside WH http://t.co/Vou49LA68M

— zerohedge (@zerohedge) September 22, 2014

Enjoy your serfdom!!

via Zero Hedge http://ift.tt/1uW6Mat Tyler Durden

For the first time since it began collecting data in 1994, Kantar Worldpanel, the market researcher, reported a decline in UK grocery sales by value, as The FT reports the biggest UK grocers were “losing market share hand over fist,” as analysts warn “there are phoney price wars, and there are real price wars. This is a real price war.” This comes on the heels of Goldman report claiming 20% of British grocers are surplus to requirements. But it’s not just Britain… in the the cleanest dirty shirt world-economic-growth supporting decoupled economy of the USA, Reuters reports Dollar General may need to divest more than 4,000 stores to win approval from the U.S. Federal Trade Commission for its acquisition of Family Dollar.

 

As The FT reports, Britain’s supermarkets have suffered their first fall in sales in at least 20 years as lower food prices and a vicious price war cut the amount customers spend on groceries.

For the first time since it began collecting data in 1994, Kantar Worldpanel, the market researcher, reported a decline in UK grocery sales by value.
“There are phoney price wars, and there are real price wars. This is a real price war,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

 

…

 

Britain’s big chains have pledged to spend billions of pounds cutting prices in an effort to stem the growth of German discounters Aldi and Lidl.

 

…

 

On Monday, research from Goldman Sachs said 20 per cent of UK supermarket space was surplus to requirements following the rise of discounters including Aldi and Lidl, the demise of the weekly shop and the increase in online grocery shopping.

But it’s not just Britain that faces retail pressure… (as Reuters reports)

Dollar General may need to divest more than 4,000 stores to win approval from the U.S. Federal Trade Commission for its acquisition of Family Dollar Stores, the New York Post reported, citing two sources close to the situation.

 

Dollar General has agreed to sell up to 1,500 stores as part of its $9.1 billion offer. It approached Family Dollar shareholders with its offer directly in September after twice being spurned by its smaller rival.

 

The New York Post reported on Wednesday that Dollar General could be forced either to raise its bid again or to divest more than double the number of stores previously pledged.

Synergies?

*  *  *

But apart from that…escape velocity here we come.

via Zero Hedge http://ift.tt/1vsoK5V Tyler Durden

• Banks Had Unfair Advantage From Commodity Units (Bloomberg)
• Report Notes Deals Between Goldman, Deutsche and Others Drove Up Aluminum Prices (WSJ)
• Goldman, Morgan Stanley Commodity Heyday Gone as Units Faulted (BBG) – because when you can no longer manipulate, you move on…
• Lenders Shift to Help Struggling Student Borrowers (WSJ)
• Immigrants face major hurdles in signing up to new Obama plan (Reuters)
• Distressed Debt in China? Ain’t Seen Nothing Yet, Buyers Say (BBG)
• Banking culture breeds dishonesty, scientific study finds (Reuters)
• Amazon Robots Get Ready for Christmas (WSJ)
• Crimean savers ask: Where’s our money? (Reuters) – What’s a saver?
• Police arrest protesters as St. Louis awaits grand jury decision (Reuters)
• Teen Retailer Faces Challenge Filling Expansive Floor Space With Right Merchandise (WSJ)
• Three students shot in Florida university library, gunman killed (BBG)
• Takata, auto executives to face Senate over deadly air bag scandal (Reuters)
• Deadly western New York snowstorm to get second wind  (Reuters)

 

Overnight Media Digest

WSJ

* United States President Barack Obama will lay out sweeping changes to the immigration system in a speech, offering new protections to millions of people in the country illegally and sparking a bitter fight with Republicans. (http://on.wsj.com/1F3JGC2)

* Amazon.com Inc has outfitted several United States warehouses with squat, wheeled robots that move stocked shelves to workers and are expected to speed delivery, saving employees as much as 20 miles a day of walking. (http://on.wsj.com/1qYIYO6)

* Federal Reserve officials meeting last month said they felt the U.S. recovery was on strong enough footing to withstand gathering external threats to growth and stuck to their plan to gradually unwind nearly six years of easy-money policies. (http://on.wsj.com/1vqtGbw)

* A United States Senate report on commodity-market activities at big Wall Street banks accuses the firms of being so powerful they were able to influence prices, gain trading advantages and put the broader financial system at risk by entering volatile businesses such as uranium trading and coal production. (http://on.wsj.com/1uTMNsW)

* A look at the partnership of Valeant Pharmaceuticals International Inc CEO Michael Pearson and activist investor William Ackman in their failed $53 billion bid to acquire Allergan Inc shows that the two men didn’t always see eye to eye. (http://on.wsj.com/1uTOC99)

* Investors are shedding holdings of Korean won, Singapore dollars and other Asian currencies, in a bet the yen’s fall against the dollar will reverberate through the region’s foreign-exchange markets. (http://on.wsj.com/1yUYcI2)

* Forever 21 is grappling with a special problem stemming from its aggressive expansion: gigantic stores that it has had trouble filling productively, sources said. It doesn’t report sales or profits, but people who have seen the figures say sales excluding newly opened or closed stores hit a negative patch within the last 18 months. (http://on.wsj.com/1Ak64aj)

* The Coca-Cola Co is increasingly pushing smaller packages as more Americans fret about calories from sugary drinks. Coca-Cola said that sales of its namesake cola’s smaller, premium-priced packages, including 7.5 ounce “mini cans” and 8 ounce glass bottles, have risen 9 percent this year through October in dollar terms in the United States. (http://on.wsj.com/1qvN05O)

* Archer Daniels Midland Co sued Syngenta AG over losses the grain trader and processor said it suffered after Syngenta sold genetically engineered corn in the United States that had yet to win approval in China. (http://on.wsj.com/1F5P6MJ)

* Yahoo Inc struck a five-year deal with Mozilla Corp to become the default search engine on its Firefox browser in the United States, ending the nonprofit’s long-standing relationship with Google Inc (http://on.wsj.com/11EvAsv)

* Thousands of people struggling to pay back student debt are in line to get a break as two big lenders, Wells Fargo & Co and Discover Financial Services roll out programs to ease loan terms. (http://on.wsj.com/1qXWWzL)

 

FT

The amount the National Health Services spends on each patient would fall between 98 pounds ($153.5856) and 191 pounds – a real term drop in spending of at least 5.5 billion pounds – by 2020 under funding pledges of the main political parties, according to an analysis.

Energy and mining companies are failing to consider the “existential threat” from climate change and must change the way they operate, former BP PLC head Lord Browne warned.

Pub companies face a decline in investor confidence and months of uncertainty after a decision by MPs to unwind the centuries-old beer tie system hammered on their share prices.

Vodafone Group PLC may be forced to bid for TV rights to keep up with its competitors as they move to offer bundled television and broadband services, putting pressure on the telecoms company to buy exclusive content, Chief Executive Vittorio Colao warned.

NYT

* A two-year Senate-led investigation is throwing back the curtain on the outsize and sometimes hidden sway that Wall Street banks have gained over the markets for essential commodities like oil, aluminum and coal. A Senate subcommittee found that Goldman Sachs and JPMorgan Chase assumed a role of such significance in the commodities markets that it became possible for the banks to influence the prices that consumers pay while also securing inside information about the markets that could be used by their own traders.. (http://nyti.ms/1BOTLo3)

* During the financial crisis in 2008, the government made a supremely generous move that most likely saved Goldman Sachs from collapse. Six years later, Goldman is still reaping benefits from the special provisions that came with that act of mercy, according to the findings of a Senate report that was released on Wednesday. (http://nyti.ms/1uzPTAV)

* The new airbag propellant was supposed to be the next big thing for Takata in 1998. An engineer for the company, Paresh Khandhadia, declared it “the new technological edge” in an interview with a trade magazine then. Based on a compound called tetrazole, it was seen as a reliable and effective compound for inflating airbags. Yet despite the fanfare, by 2001 Takata had switched to an alternative formula, ammonium nitrate, and started sending the airbags to automakers, including Honda. That compound, according to experts, is highly sensitive to temperature changes and moisture, and it breaks down over time. And when it breaks down, it can combust violently, experts say. (http://nyti.ms/1xR1DAt)

* A group of community bankers raised many of the same concerns as Senators Elizabeth Warren and Richard Durbin about the naming of Antonio Weiss to a top Treasury job. One being Weiss’s work on Burger King’s acquisition of the Canadian coffee chain Tim Hortons Inc. (http://nyti.ms/1vrqV9R)

* After Netflix Inc delayed a stand-up special, NBC announced it was dropping plans to develop a new sitcom starring comedian Bill Cosby, the latest fallout from rape accusations. (http://nyti.ms/1uLPT2n)

 

Canada

THE GLOBE AND MAIL

** Calgary-based pipeline and power giant TransCanada Corp said on Wednesday that it would spend as much as $46 billion through to 2020 to connect surging supplies of shale gas and oil sands crude in Western Canada to growth markets. (http://bit.ly/1ysGiN9)

** Australia’s free trade deal with China may not be good news for Canada as its companies struggle to find a foothold in the world’s second largest economy. The Australian deal is now prompting calls in Canada for the Stephen Harper government to kick-start its own free trade talks with China, which stands to find cheaper alternatives to its south than from across the Pacific once the agreement is finalized. (http://bit.ly/1ysH50s)

** Bell Media Inc has cut 80 full-time positions in its latest round of layoffs, citing an “industry-wide challenging advertising market.” (http://bit.ly/1vsav14)

NATIONAL POST

** Premier Kathleen Wynne’s decision to reopen contracts for public school teachers last year cost Ontario taxpayers $468 million, Ontario Auditor General Bonnie Lysyk reported on Wednesday. (http://bit.ly/1xEdaW4)

** Former Conservative party campaign worker Michael Sona has been sentenced to nine months for his role in a scheme to misdirect voters to the wrong polling location in Guelph in the 2011 federal election. Judge Gary Hearn also imposed an additional 12 months of probation on Sona after his jail term is served. (http://bit.ly/1zFR2Zo)

** Toronto-based Brookfield Asset Management is abandoning its plan to buy the former Revel Casino Hotel in Atlantic City, dealing another blow to a city reeling from a string of casino closures and the disappearance of thousands of jobs. (http://bit.ly/1xRDhGz)

 

China

CHINA SECURITIES JOURNAL

– Companies that have listed on the over-the-counter (OTC) exchange and have met compliance requirements can be transferred to China’s Nasdaq-style board known as ChiNext, said Liu Jianjun, deputy director at the supervision department of private equity in China Securities Regulatory Commission (CSRC).

– Zhuang Xinyi, vice chairman of CSRC, said at a forum meeting on Wednesday that the commission was pushing forward with reforms on the initial public offering (IPO) process which is currently based on an approval-based registration system.

SECURITIES TIMES

– Hong Kong residents’ demand for offshore renminbi, also known as yuan, has risen to a two-week high due to the launch of the Shanghai-Hong Kong stock connect scheme. The rise in demand has also boosted the exchange rate for offshore yuan, the paper said.

SHANGHAI SECURITIES NEWS

– The government will push ahead with financial reforms even as the economy faces growing pressure, according to officials from the National Development and Reform Commission.

SHANGHAI DAILY

– The water in half of China’s top 10 river systems is polluted and about 60 percent of the nation’s underground water is of poor quality, according to China’s Environmental Situation Report. About 9 percent of the water in these river systems was rated as class V, indicating severe pollution.

CHINA DAILY

– China is ready to work with other countries to deepen international cooperation, respect sovereignty on the internet and uphold cyber security, President Xi Jinping said in a congratulatory message to the first World Internet Conference.

 

Britain

The Times

Wait times are halved for latest NHS drugs Waiting times for cutting-edge drugs will be cut in half under government plans to rip up a “broken” system that has denied many NHS patients life-extending treatments. (thetim.es/1vqUjh1) Bankers fail scientists’ honesty test Rogue traders, the Libor scandal and astronomical bonuses for the chiefs of failing banks have all hinted that banking’s moral compass had gone awry. Now scientists say they have confirmed what many suspected – the industry really is more dishonest than most. (thetim.es/1Akm1gE)

The Guardian

Royal Mail says Amazon delivery service will hit its UK parcels business

Royal Mail Plc has warned that growing competition from Amazon.com Inc will hurt its UK parcels business, as it reported a 21 percent decline in first-half profits. (bit.ly/11BxKsT)

Jail the best deterrent for rogue traders, BoE deputy governor says

Nemat Shafik, one of the Bank of England’s deputy governors, said the best deterrent to rogue traders in financial markets is the threat of jail. (bit.ly/11vsfLt)

The Telegraph

11 bln stg energy smart meter roll-out suffers further delay

The government’s 11-billion-pound ($17-billion) plan to install “smart” energy meters in every home is being delayed by up to a year, after the company in charge of the communications system for the devices warned it would not be ready in time. (bit.ly/1thnyLS)

Thousands join Lloyds investor lawsuit over HBOS takeover

About 8,000 investors have put their name to a lawsuit claiming Lloyds Banking Group Plc misled shareholders ahead of the bank’s acquisition of HBOS Plc six years ago. (bit.ly/11DLx2l)

Sky News

UK company planning to land probe on moon

British company Lunar Missions Ltd is planning to send a probe to the moon and bury a time capsule of memory discs under the surface. (bit.ly/1p1Cm5H)

Bank watchdog hands out fine to RBS The regulatory arm of the Bank of England will hand out its first fine on Thursday when it censures Royal Bank of Scotland for an IT meltdown in 2012. (bit.ly/11ukjdt)

The Independent

Londoners set to spend £1bn in run-up to Christmas

Christmas spending in London’s West End is expected to break through the 1 billion pound barrier for the first time this year as confidence in the recovery gathers momentum. (ind.pn/1zEgJJG) M&S to scale back ‘duplicated and overcrowded’ clothing lines

Marks and Spencer Group Plc has said there will be 20 percent fewer lines than two years ago in a sign the company is beginning to regain confidence in its abilities. (ind.pn/1vqSLmx)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Consumer Price Index for October at 8:30–consensus down 0.1%
Jobless claims for week of November 15 at 8:30–consensus 284K
Markit manufacturing PMI for November at 9:45–consensus 56.3
Leading indicators for October at 10:00–consensus up 0.5%
Existing home sales for October at 10:00–consensus down 0.4% to 5.15M rate

ANALYST RESEARCH

Upgrades

Columbia Banking (COLB) upgraded to Buy from Neutral at Sterne Agee
EOG Resources (EOG) upgraded to Overweight from Neutral at Atlantic Equities
Franklin Street (FSP) upgraded to Outperform from Neutral at RW Baird
JetBlue (JBLU) upgraded to Neutral from Underperform at Credit Suisse
Primerica (PRI) upgraded to Buy from Neutral at SunTrust
Stage Stores (SSI) upgraded to Market Perform from Underperform at Telsey Advisory
Statoil (STO) upgraded to Overweight from Neutral at HSBC
The Medicines Co. (MDCO) upgraded to Outperform from Neutral at Credit Suisse
TrueCar (TRUE) upgraded to Outperform from Sector Perform at RBC Capital
Yum! Brands (YUM) upgraded to Buy from Neutral at Janney Capital

Downgrades

Alexandria Real Estate (ARE) downgraded to Neutral from Outperform at RW Baird
Allscripts (MDRX) downgraded to Sector Perform from Outperform at RBC Capital
athenahealth (ATHN) downgraded to Underperform from Sector Perform at RBC Capital
Boston Properties (BXP) downgraded to Neutral from Outperform at RW Baird
Cliffs Natural (CLF) downgraded to Hold from Buy at Deutsche Bank
Computer Programs (CPSI) downgraded to Sector Perform from Outperform at RBC Capital
Constellium (CSTM) downgraded to Neutral from Buy at Citigroup
Cubist (CBST) downgraded to Neutral from Outperform at Credit Suisse
Denbury Resources (DNR) downgraded to Equal Weight from Overweight at Barclays
E-House (EJ) downgraded to Perform from Outperform at Oppenheimer
First Interstate (FIBK) downgraded to Neutral from Buy at Sterne Agee
Macerich (MAC) downgraded to Market Perform from Outperform at BMO Capital
Oplink Communications (OPLK) downgraded to Neutral from Buy at B. Riley
Owens-Illinois (OI) downgraded to Market Perform from Outperform at BMO Capital
Quality Systems (QSII) downgraded to Sector Perform from Outperform at RBC Capital
Santander Consumer (SC) downgraded to Underweight at Morgan Stanley
Sapient (SAPE) downgraded to Hold from Buy at Stifel
Zoetis (ZTS) downgraded to Market Perform from Outperform at William Blair

Initiations

American Express (AXP) initiated with a Market Perform at Bernstein
Apache (APA) initiated with an Outperform at Imperial Capital
BBCN Bancorp (BBCN) initiated with a Neutral at Sterne Agee
BCE (BCE) initiated with a Buy at Citigroup
Capital One (COF) initiated with an Outperform at Bernstein
Discover (DFS) initiated with a Market Perform at Bernstein
First Republic Bank (FRC) initiated with an Underperform at Sterne Agee
Hanmi Financial (HAFC) initiated with a Buy at Sterne Agee
International Paper (IP) initiated with a Market Perform at Wells Fargo
MeadWestvaco (MWV) initiated with a Market Perform at Wells Fargo
NAPCO Security (NSSC) initiated with a Neutral at B. Riley
Opus Bank (OPB) initiated with a Buy at Sterne Agee
Rogers Communications (RCI) initiated with a Neutral at Citigroup
Strategic Hotels (BEE) initiated with an Outperform at RBC Capital
Synchrony Financial (SYF) initiated with an Outperform at Bernstein
TELUS (TU) initiated with a Buy at Citigroup

COMPANY NEWS

Yahoo (YHOO) and Mozilla announced a strategic five-year partnership that makes Yahoo the default search experience for Firefox in the United States on mobile and desktop (GOOG)
Keurig Green Mountain (GMCR) said CFO Frances G. Rathke to leave in FY15
JANA Partners said it is continuing discussions with Hertz (HTZ) for board, management changes
Billboard 200 chart to include on-demand streaming in rankings (NLSN, MSFT, GOOG, AAPL, P)
RBS (RBS), NatWest, Ulster Bank fined GBP42M by FCA
CGG SA (CGG) confirmed offer from Technip (TKPPY), considered that conditions to pursue not met
Amazon.com (AMZN) to start Black Friday deals on Friday, Nov. 21
KLA-Tencor (KLAC) declared special dividend of $16.50 per share

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Kirkland’s (KIRK), JinkoSolar (JKS), GasLog (GLOG), Copa Holdings (CPA), America’s Car-Mart (CRMT), L Brands (LB), Fidelity & Guaranty Life (FGL), Datawatch (DWCH), Williams-Sonoma (WSM), Salesforce.com (CRM), Real Goods Solar (RGSE), Keurig Green Mountain (GMCR)

Companies that missed consensus earnings expectations include:
Donaldson (DCI), Atento  (ATTO)

Companies that matched consensus earnings expectations include:
Jumei (JMEI)

NEWSPAPERS/WEBSITES

Caesar’s (CZR) to turn operating unit into REIT, Bloomberg reports
AB InBev (BUD) cutting jobs, consolidating sales division in U.S., WSJ reports
Senate panel says banks could influence commodity prices, NY Times says (GS, JPM)
Citigroup (C) risk executive Miller found dead in New York, Bloomberg reports
Goldman (GS) terminates two employees for sharing confidential information, WSJ reports
Target (TGT) looks ‘poised for more gains,’ Barron’s says

SYNDICATE

Autohome (ATHM) 8.5M share Secondary priced at $42.50
Continental Building (CBPX) 7M share Secondary priced at $14.75
Covenant Transportation (CVTI) 2.64M share Secondary priced at $22.00
Essent Group (ESNT) 12M share Secondary priced at $22.25
GoPro (GPRO) 10.36M share Secondary priced at $75.00
Habit Restaurants (HABT) 5M share IPO priced at $18.00
Immune Pharmaceuticals (IMNP) files automatic common stock, warrants shelf
Independence Realty Trust (IRT) files to sell 6M shares of common stock
Kindred Healthcare (KND) 5M share Secondary priced at $19.75
La Quinta (LQ) 20M share Secondary priced at $20.00
Lexicon (LXRX) files to sell $50M of common stock
Neothetics (NEOT) 4.65M share IPO priced at $14.00
ONEOK Partners (OKS) enters $650M equity distribution agreement
Walker & Dunlop (WD) files to sell 2M shares of common stock for holders

via Zero Hedge http://ift.tt/1yWEuM9 Tyler Durden

Psst, want to lose some money fast? Then you, like Goldman’s Global Opportunities Hedge Fund, should have invested in Goldman’s own top trading ideas for 2014, a hedge fund which as we reported is down 2.6% YTD.

But in case you missed out on this sterling opportunity to blow money in nominal and real terms, you are in luck, because seconds ago Goldman’s “smartest men, and women, in the room” released their first Top 8 trades for 2015. Which, as a reminder, are a great moneymaking strategy for Goldman’s flow desk which is on the other side of these trades, and assures a loss for all those, Goldman’s internal hedge funds included, who are on the receiving end of Goldman’s wisdom. And yes, all those who wish to keep shorting those 10 Years – a trade Goldman can’t stop recommending year after year – can just mail a blank check to Goldman right now.

So without further ado, here they are:

• Top Trade #1: EUR/$ downside via a one-year EUR/$ put spread.
• Top Trade #2: 10-year US Treasuries above 3% but not below 2% in mid-2015, through cap and floor spreads at zero cost.
• Top Trade #3: Long a Dec-2015 Eurostoxx 50 ‘bull’ call spread.
• Top Trade #4: Long US High Yield credit risk via 5-year CDX HY junior mezzanine tranches.
• Top Trade #5: Long an equity basket of EM crude oil importers (Taiwan, Turkey and India).
• Top Trade #6: Short CHF/SEK.
• Top Trade #7: Bearish Copper relative to Nickel, on supply divergence.
• Top Trade #8: Long US Dollar against a basket of ZAR and HUF.

Some more detail:

Top Trade #1: EUR/$ downside via a one-year EUR/$ put spread

Position for EUR/$ downside via a one-year 1.20/1.15 put spread for around a 4.5 to 1 potential maximum payout.

We forecast that EUR/$ will fall to 1.15 over the next 12 months, in equal parts a reflection of our Dollar bullish view and Euro bearish outlook. In particular, given that HICP inflation is unlikely to rebound in coming months, there is a chance that additional ECB easing, including possibly sovereign QE, comes sooner rather than later, setting the stage for EUR/$ to move meaningfully lower in the short term.

Top Trade #2: 10-year US Treasuries above 3% but not below 2% in mid-2015, through cap and floor spreads at zero cost

Buy a constant maturity 10-year US Treasury 3.00-3.50% ‘cap spread’ at zero cost by selling a corresponding 2.24-1.75% ‘floor spread’, both expiring on June 30, 2015.

We expect 10-year US Treasuries (TY10), currently yielding around 2.3%, to trade at or above 3.0% next June – one quarter ahead of the market-implied lift-off date for the Federal Funds rate. Our Sudoku model indicates that TY10 are already trading ‘expensive’ relative to our Economics team’s global macro outlook, and puts yields in a 3.10-3.50% range in the second half of next year. TY10 outcomes higher than 3.5%, implying a 5-year 5-year forward rate of over 4.0%, are unlikely over this horizon, especially considering that German Bund and JGB yields are still capped by the respective central banks.

Top Trade #3: Long a Dec-2015 Eurostoxx 50 ‘bull’ call spread

Go long Dec-2015 Eurostoxx 50 3150/3450 ‘bull’ call spread (buying the Dec-2015 3150 strike call and selling the Dec-2015 3450 strike call), currently at 101.5 (Bloomberg: SX5E 12/15 C3100 Index vs. SX5E 12/15 C3400 Index).

The (nearly) at-the-money 3150 call costs 170.6, while selling the 3450 call costs 69.10 (both priced as of the close on November 19), giving this position a maximum potential 2-to-1 payout. There are two routes by which European equities could move higher. In our central case, we see scope for a pick-up in Euro area growth in 2015, which we think is not reflected in market prices. At the same time, our European economists see a significant risk of a downside case in which activity and inflation disappoint. And, in that case, the ECB would move to more forceful QE, so initial asset market pressure would subsequently be reversed.

Top Trade #4: Long US High Yield credit risk via 5-year CDX HY junior mezzanine tranches

Go long risk (sell credit protection) on the 5-year CDX HY Series 23 junior mezzanine tranche (the 15-25% portion of the loss distribution), at a running spread of roughly 495bp per year for a target of 440bp (implying a potential return of over 700bp) and a stop at 580bp.

We think the recent underperformance of the US High Yield (HY) market should prove transitory. Our current best understanding for this underperformance is that a portion of the HY investor base remains burdened by recent losses on a number of crowded trades. Our choice of the junior mezzanine tranche, which provides a reasonable level of subordination for default losses, is partly informed by our long-standing ‘up-in-quality’ view on the HY market.

Top Trade #5: Long an equity basket of EM crude oil importers (Taiwan, Turkey and India)

Buy an equally-weighted basket of Taiwan (TWSE), Turkey (XU030) and India (NIFTY) stock market indices, priced at 100, with an initial target of 115 and a stop at 93.

The decline in crude oil prices has the potential to boost activity growth, particularly for oilimporting countries in Emerging Markets (EM). We propose an equally-weighted basket of several of the biggest EM petroleum importers. Each of the basket’s constituent countries adds elements that, in our view, fit with our global baseline macro outlook. Taiwan is an exporting economy that is exposed to a growing US, and has lagged the recent move higher in US equities along with the broader EM complex.

Top Trade #6: Short CHF/SEK

Go short CHF/SEK at the current spot of around 7.70 with a target of 7.00 and a stop at 8.10.

Euro weakness has been reflected in EUR/$ and EUR/GBP this year, to name just two Euro crosses, but EUR/SEK is a notable exception. In large part, this reflects the fact that inflation in Sweden is almost as low as in the Euro area, with recent dovish surprises from the Riksbank reinforcing the view that Sweden and the Euro area are suffering from the same ‘lowflation’ problem. We do not agree with this. After all, low inflation in the Euro area has a heavy structural component, as the internal rebalancing in the monetary union involves lower prices/wages in the periphery and the opposite dynamics in the core markets. In contrast, we see low inflation in Sweden as temporary and think it will move higher in coming months, in line with the Riksbank’s October forecast.

Top Trade #7: Bearish Copper relative to Nickel, on supply divergence

Position for Copper underperformance relative to Nickel via Dec-15 LME futures, using equal notional amounts, for a potential 20% upside.

The short Copper/long Nickel trade highlights some important features of our set of market views for 2015 in the commodities space, particularly the theme of ‘supply differentiation’. Copper has entered a once-in-20-year supply cycle, resulting in above-trend supply growth, while Nickel supply continues to be constrained by the Indonesian export ban. This should result in rising (falling) visible inventories of Copper (Nickel) in 2015.

Top Trade #8: Long US Dollar against a basket of ZAR and HUF

Go long USD against a basket of HUF and ZAR at 100, with a spot target of 113 and a stop at 94. The ‘cost-of-carry’ for the basket is around 3.75% per annum, which we will account for in terms of our stop-loss throughout the year.

Our global outlook is consistent with USD strength against EM currencies. The strengthening US recovery should see US yields pushing higher from current levels, while EM rates stay suppressed due to the broader commodity-driven disinflation trends in the first half of the year. The compression in interest rate differentials should ultimately result in USD/EM strength. Two buckets of EM currencies are most exposed. The first bucket includes countries facing persistent imbalances. South Africa stands out: its external imbalance has remained large despite a weaker currency, higher yields and softer activity performance.

* * *

To summarize: short bonds (this time will be different), go long a decoupling America, short Europe because Draghi will do “whatever it takes” to crush Europe’s political capital, er, artificial currency, and then go long risk on both inflation and deflation because as showed yesterday, in the current idiotic period which historians will laugh at one day, both inflation and deflation are bullish.

The only thing that prevents us from issuing a “do just the opposite” recommendation is that unlike previous years, Tom Stolper is not part of the recommending crew, thus there is some risk Goldman may actually get some of these right…

via Zero Hedge http://ift.tt/1F3MVr2 Tyler Durden

The continuation of the two major themes witnessed over the past month continued overnight: i) the USDJPY rout accelerated, with the Yen running to within 2 pips of 119 against the dollar as Albert Edwards’ revised USDJPY target of 145 now appears just a matter of weeks not months (even though subsequent newsflow halted today’s currency decimation and the Yen has since risen 100 pips , and ii) the global economic slowdown was once again validated by global PMIs missing expectations from Japan to China (as noted earlier) and as of this morning, to Europe, where the Manufacturing, Services and Composite PMI all missed across the board, driven by a particular weakness in France (Mfg PMI down from 48.5 to 47.6, below the 48.8 expected), but mostly Germany, after Europe’s growth dynamo, which disappointed everyone after yesterday’s rebound in the Zew sentiment print, printed a PMI of only 50.0, down from 51.4 a month ago, down from 52.7 a year ago, and below the 51.5 expected.

This was driven by a tumble in New Orders from 49.8 to 47.8, which is the lowest reading since December 2012 and is the 3rd consecutive month of contraction. In other words, that Chinese import demand is just not coming back, and once again Draghi’s attempts to restart Europe’s economy by doing more of what has already failed, have failed.

This is how Goldman spun the data:

The Euro area composite PMI fell from 52.1 to 51.4 in November, against consensus expectations of a 0.3pt increase and our forecast of a flat reading (Cons: 52.3, GS: 52.1). The decline in the composite PMI was driven by a 1.0pt fall in the services component to 51.3, while the manufacturing PMI edged down 0.2pt to 50.4. The German composite PMI showed a notable large decline. The level of PMIs continues to point to small positive growth rates in Q4.

• The manufacturing PMI fell marginally from 50.6 to 50.4 in November, offsetting most of the small gain observed in October. The manufacturing PMI is down 3.6pt relative to its recent peak in January 2014. The services PMI recorded a sharper decline, falling from 52.3 to 51.3, extending its downward move to a fourth consecutive month (Exhibit 1). The consensus expectation was for small increase in both the manufacturing and services PMI.
• The breakdown showed a mixed picture. New orders fell 0.4pt but the forward-looking orders-to-stock difference rose by 0.8pt on the back of lower stocks (Exhibit 2). Other subcomponents of the manufacturing PMI sent mixed signals, with output rising 0.2pt, but employment falling 0.3pt. For services, the forward-looking subcomponents (which are not part of the headline services PMI figure) were mixed: ‘incoming new business’ fell 1.0pt, while ‘business expectations’ ticked up by 0.6pt.
• In addition to the Euro area aggregate, Flash PMIs were released for Germany and France. The German composite PMI contracted by 1.8pt to 52.1, against consensus expectations of a small increase (Cons: 54.0). This was driven by a sharp decline in both the manufacturing PMI (-1.4pt to 50.0) and services PMI (-2.4pt to 52.1). The German composite PMI has been volatile since the start of the year, but today’s weak reading drives the index back to its May 2013’s level. In contrast, the French composite PMI printed at 48.4 in November, 0.2pt above its October level. The decline in the manufacturing component (-0.9pt to 47.6) was more than offset by a 0.5pt increase in the service component (to 48.8) (Exhibit 3).
• Based on historical correlations, a reading of 51.4 is associated with +0.1%qoq GDP growth. In the same vein, our CAI points to similar growth in November (+0.2%), in line with the October reading (Exhibit 4).

As a result European equities initially opened in relatively unchanged territory following on from the neutral FOMC minutes release which failed to see participants adjust their expectations for a Fed rate hike. Thereafter, attention turned towards the slew of Eurozone PMI releases, which confirmed the global weakness previously revealed in Japan anad China. The main market-mover this morning was from Germany which saw an across the board miss for the Eurozone-heavyweight with manufacturing slipping to 50.0 and thus only narrowingly missing a contractionary reading. This subsequently saw European equities firmly slip into the red with participants beginning to question the efficacy of the ECB’s stimulus package, while fixed income products firmed alongside the softness seen in stocks. On an index specific basis for Europe, the IBEX is the notable underperformer after being weighed on by BBVA following the completion of their stock offering.

 

Bulletin Headline Summary from RanSquawk and Bloomberg

• Eurozone PMI figures send European equities lower after painting a particularly dreary picture of the area’s manufacturing and service sector.
• USD/JPY continued its move higher overnight as JPY remains out of favour, although failed to make a break above 119.00, while GBP found reprieve following a strong retail sales release.
• Looking ahead, attention turns towards US CPI, weekly jobs figures, manufacturing PMI, Philadelphia Fed outlook, existing home sales and any comments from Fed’s Tarullo, ECB’s Mersch and Lautenschlaeger.
• Treasuries gain as PMI reports show risk of renewed slowdown in euro area and a decline in Chinese manufacturing; U.S. CPI due today before auction of 10Y TIPS.
• HSBC/Markit’s China PMI fell to 50.0 in November, a six-month low, below the 50.2 median in a Bloomberg survey and lower than last month’s 50.4
• PBOC is considering changing the way it calculates banks’ loan-to-deposit ratios, a government official briefed on the matter said, signaling efforts to boost credit as the economy falters
• Euro-area PMI for factories and services fell to 51.4 in November, lowest in 16 months; a composite measure for Germany also declined
• U.K. retail sales rose at the fastest pace in six months in October, as prices fell 1.5% last month from a year earlier, their biggest decline since 2002
• German Foreign Minister Frank-Walter Steinmeier said mounting tensions in eastern Ukraine raised the risk of a “major military confrontation”
• Obama’s deputy national security adviser said the administration would welcome congressional authorization for U.S. military action against Islamic State with limits on duration and ground combat
• Obama will use a prime-time television speech tonight to present the biggest reprieve for undocumented immigrants in a generation, even as his order falls short of goals embraced by legislation the U.S. Senate passed last year
• If the U.K. Independence Party wins a second elected seat in Parliament today, it will be a rebuke to Conservatives and Labour, suggesting that Cameron’s promises of a referendum on EU membership and tighter rules on immigration have done nothing to win voters and that Labour isn’t the beneficiary
• Sovereign yields mostly lower. Asian stocks flat to lower. European stocks slide, U.S. equity-index futures lower. Brent crude falls, gold and copper gain

US Economic Calendar

• 8:30am: Initial Jobless Claims, Nov. 15, est. 284k (prior 290k); Continuing Claims, Nov. 8, est. 2.370m (prior 2.392m)
• 8:30am: CPI m/m, Oct., est. -0.1% (prior 0.1%);
  • CPI Ex-Food and Energy m/m, Oct., est. 0.1% (prior 0.1%)
  • CPI y/y, Oct., est. 1.6% (prior 1.7%); CPI Ex-Food and Energy y/y, Oct., est. 1.7% (prior 1.7%)
• 9:45am: Markit U.S. Manufacturing PMI, Nov. preliminary 56.3 (prior 55.9)
• 9:45am: Bloomberg Consumer Comfort, Nov. 16 (prior 38.2); Bloomberg Economic Expectations, Nov. (prior 51)
• 10:00am: Philadelphia Fed Business Outlook, Nov., est. 18.5 (prior 20.7)
• 10:00am: Existing Home Sales, Oct., est. 5.15m (prior 5.17m)
• Existing Home Sales m/m, Oct. -0.4% (prior 2.4%)
• 10:00am: Leading Index, Oct., est. 0.6% (prior 0.8%)

Central Banks

• 7:45am: Fed’s Tarullo speaks in New York
• 1:30pm: Fed’s Mester speaks in London
• 8:30pm: Fed’s Williams speaks in Seoul

FX

In FX markets, EUR/USD was initially provided a bid following a bout of USD weakness after USD/JPY failed to break above 119.00 which also then provided some reprieve for antipodean currencies, with AUD and NZD weighed on by declining iron ore prices and weak PPI data respectively. However, this upside for EUR was short-lived following the Eurozone PMI report which subsequently saw the USD-index pare earlier losses. Another key mover in FX markets has been GBP following the UK’s across the board stronger than expected retail sales report which saw GBP extend on yesterday’s BoE inspired gains.

COMMODITIES

Elsewhere, energy markets trade in modest negative territory while largely tracking movements in the USD-index. However, overnight saw some interesting rhetoric from the Venezuelan President Maduro, who said Venezuela is defending the oil price and fair price for oil is USD 100/bbl while the Iranian Oil Minister said ‘under no circumstance, will we reduce our global market share, even by one barrel’. In terms of price action in metals markets precious metals declined overnight as Chinese factory output appeared to stall in November, while sentiment for gold was further weakened following a poll that showed a drop in support for the Swiss referendum, nonetheless the yellow metal has seen somewhat of a rebound heading into the North American open.

* * *

DB’s Jim Reid concludes the overnight event summary in a way only he can

Before we get to the FOMC minutes and the first slightly weaker (Japan and China) PMI releases of the day there are a few interesting and potentially head scratching themes bubbling under the surface at the moment. One such theme is the continued slow but meaningful divergence in the direction of IG credit spreads in Europe and the US. US cash IG is at YTD spread wides whereas Euro cash IG at close to YTD tights. As an example European non-financial Single-As and BBBs are both about 15bps tighter in 2014 to Govt bonds. On the other hand the equivalent two US indices are 15-20bp wider with BBBs actually being about 40bps wider than the tights for the year back around the end of June (Single-As 20bp wider). We’ve put these charts in the pdf today alongside the sterling equivalent which are closer to the US in performance than the European market. So what’s going on?

Well as we’ve highlighted over the last couple of weeks the lower Oil price is seriously depressing the Energy credit sentiment in the US in both HY and IG. However Energy makes up ‘only’ 10.6% of the US IG credit index and although its the second largest sector, nearly 90% clearly isn’t in that sector. We’d also say that after discussions with our US credit strategist Oleg Melentyev, the fall in oil for now is more of a profitability issue than a credit quality issue for IG. At the moment he doesn’t even expect much in the way of IG rating actions as a result of the oil move assuming we don’t fall much further. Clearly there are risks though and the market is pricing these.

So oil is an issue in the US but it can’t explain the whole story. So is it the fear of an increasingly hawkish Fed in 2015? Well perhaps so but since the spread tights in June, 10 year USTs are around 25-30bps lower in yield and equity markets close to their all-time high so these markets aren’t that fearful. In fact after the wobble in September/October markets largely priced out a Fed hike in 2015 even if the Fed certainly haven’t (see the FOMC minutes below).

Added to this, supply has been picking up but not to unusual levels for the time of year and increasing leverage is still not a big feature of the US IG credit market. So it is likely a combination of the factors above and a perhaps simple reaction to the end of QE which may be slowly reducing liquidity and confidence from the system. However this argument would be more compelling if US equities weren’t around their all time highs. Looking at it from the opposite side of the divergence, European IG credit is close to YTD tights because of low yields, fixed income inflows, and expectations that the ECB might buy corporate and government bonds soon thus helping demand for credit and ensuring the yield environment remains lows. So perhaps QE trends are having a bigger impact on the divergence even if the conundrum continues given that European equities are little better than flat for the year. So an interesting theme and one to carry on watching. It seems unlikely that US credit can sustain itself at YTD wides while US equities are around time highs. Something will likely give.

Coming back to the FOMC yesterday, the details did little to get the market excited with the minutes indicating that most committee members support keeping rates low even after the Fed has reached its goal. Interestingly they also highlighted that the members considered removing the ‘considerable time’ language from the statement, possibly highlighting a generally more hawkish consensus stance here. However they also debated inflation and there doesn’t seem to be much certainty for the outlook here with the risks on the downside so we’ll likely to continue to be data dependant. DB’s Alan Ruskin made an interesting point yesterday. He suggested that if Oil stays where it is and other components remain in-line, the CPI could be zero in a year at the same time as the unemployment rate falls to 5%. Even if this is part right it throws up some fascinating dilemmas for policy makers.

As we mentioned, market reaction was fairly muted on the whole yesterday. The S&P 500 closed -0.15% as the small post FOMC rally was quickly repelled into the close. Treasuries were notably weaker across the curve, the 10y +3.7bps higher to 2.36% whilst the Dollar traded modestly firmer.

Looking at the day ahead, we’ve got a host of flash PMIs to look forward to. Before we preview these, we’ve already had the November manufacturing and HSBC flash prints for Japan and China respectively. The readings are fairly subdued, both China (50.0 vs. 50.2 expected) and Japan (52.1 vs. 52.7) coming in under consensus. The former has now fallen to a six month low after hitting 50.4 in October whilst on the production side the output print hit a seven month low at 49.5. However there was some positive news out of Japan, the trade data print this morning shows that exports have risen by the most in eight months in October, although no doubt helped by a weaker JPY. Just on this, as we type the Dollar has extended a seven year highs versus the JPY, trading now at 118.16 (+0.2%). In terms of market reaction in Asia, the Nikkei (+0.11%) and CSI 300 (+0.19%) are trading relatively unchanged following the PMI’s and elsewhere bourses are mostly mixed with the Hang Seng and Kospi +0.26% and -0.45% respectively.

Following this up today we’ve got the preliminary November services and manufacturing readings for the eurozone as well as regional flash prints for Germany and France. With regards to the eurozone, the market is expecting a 52.3 reading, a touch up on October’s 51.2. Meanwhile in Germany the market will likely be disappointed with anything less than 54 for the composite. It’ll be interesting to see if the numbers back up the slightly better sentiment in the market following Draghi’s comments the other day and the modestly better-than-expected Q3 GDP.

Later in the day, we will be focusing our attention back on the US with the much anticipated CPI reading. Our US colleagues are expecting a fall in the headline to -0.1% given declining energy prices which should offset further gains to food prices. They do however expect the core to round up to +0.2% on the back of rising pressure on rental costs due to a shortage of housing supply. Interestingly on this, our colleagues note that the nationwide rental vacancy rate fell to 7.4% from last quarter (from 7.5%), marking the lowest reading since Q1 1995. As a result they expect that the rising rents should keep service inflation above 2% and offset some of the weakness elsewhere in the sector – we note the importance of this factor given that shelter costs account for around 41% of overall core CPI inflation.

Just before we look at the rest of the day ahead, the FT has reported that recent polls in Switzerland show the Swiss National Bank succeeding in beating back the initiative that would force the central bank to hold at least 20% of its assets in gold ahead of the vote at the end of the month. The latest figure from Gfs Bern agency found that support for the initiative had dropped to 38% from 44% last month, with the opposition figure rising to 47%. Gold declined 1.2% yesterday following the news and is 0.3% lower this morning.

In terms of the rest of the day ahead, we’ve got a busy calendar to get through. As well as the anticipated CPI reading this afternoon in the US, we’ve also got initial claims, the Philadelphia Fed index as well October readings for existing home sales and the leading indicator in the region. Just on the latter, we’re not expecting much in the way of a market-moving event given that nearly all of subcomponents are already known. Our US colleagues point out that the current year-to-date annualized gain in the index is 6.6%, marking the fastest rate since 2004 (if we exclude the 2009 print which came off a record low base).

Before all this in Europe, away from the PMI prints we also have industrial sales and orders in Italy as well as the eurozone consumer confidence survey. In terms of data here in the UK, we’ve got the October retail sales reading and CBI trends orders. Not wanting to leave out the usual central bank speak, the ECB’s Mersch will be worth listening out for whilst Fed speakers include Tarullo and Mester speaking on liquidity and forward guidance respectively.

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

Submitted by Brandon Smith via Alt-Market.com,

From its very inception, the Leninist/Marxist ideology of the Soviet Union made it a central priority to dispel and subjugate religious and spiritual expression. The state was “god.” No other god could be allowed to flourish, for if the people were given license and freedom of belief in something beyond themselves and beyond the establishment, they would retain a sense of rebellion. The collectivist philosophy requires the utter destruction of all competitors; otherwise, it can never truly prevail.

Atheism became the cult of choice among the communists, for in an atheist world there is nothing beyond the veil. There is no greater goal and no inherent self. There is no true individualism, only self interest (not the same thing), the trappings of environmental circumstances, and the constant substantiation of the greater good. By extension, there is no inborn moral compass or conscience, only the social fashions and mores of the moment. In such a world, tyrants reign supreme because atheism allows relativism to flourish; and any crime, no matter how heinous, can be rationalized.  Beyond this, if you know and study the real history of the rise of communism, you know through great researchers like Antony Sutton that the very fabric of the system would never have existed without the monetary and military aid of international financiers (i.e. the NWO).

The atheist position uses the same arguments I have just made as a reason to remove religion and spirituality from our cultural influences. And in some respects, atheists are right. Religion is a tool that can be exploited to manipulate the masses. Any system of belief that is faith-based can be misinterpreted and abused in order to lure unwitting dupes and mindless followers into the fray of an engineered disaster. Atheists commonly argue that it is the encumbering nature of faith that causes mankind to destroy itself in the name of zealotry and self-righteous ignorance.

The difference, however, is that religious zealots are still required by the confines of their dogma to at least appear as though they follow a moral code. Therefore, they can be exposed as violators of this code and weakened over time. The atheist/collectivist system, though, thrives on the concept that there is no such thing as a moral code and that one is vindicated and heroic if he takes extreme action to prove that traditional morality is a vice, rather than a virtue. Atheists in positions of power often make no attempt to affirm their actions; rather, they demand that society abandon all conscience and sense of natural law. They do not ask for forgiveness; they order you to apologize for your moral compass.  Are some atheists good and honorable people?  Surely.  The point, however, remains; atheism is the new flavor of the era, the increasingly predominant gravitational center of modern culture, the philosophical soil in which the NWO has chosen to grow its globalist experiment.

What atheists don’t seem to grasp is that atheism is itself based on an act of faith: faith in the idea that there is nothing beyond our perceptions of existence. They have no more factual knowledge of what lay at the center of life than any of the religious acolytes they so fondly attack, yet their own hypocrisy is apparently lost on them.

I would not pretend to deny that religion has the ability to create a volatile atmosphere edging toward genocidal tendency, but so does any belief system that assumes it is the paramount of knowledge denying all others. The intellectual intolerance of the socialist atheism of the 20th century spawned a death machine that claimed the lives of millions of people. So, clearly, atheists should be more concerned with the violent tendencies of their own ilk rather than the religious “fiends” they seem so obsessed with. Of course, this is a history modern atheists would rather ignore or rewrite.

I have always been concerned with the dilemma of the collectivist ideology, but even more so in recent months, as our world creeps closer toward global crisis. Crisis always provides circumstance and cover for dangerous philosophical totalitarianism.

Not long ago I came across the column “Some Atheists And Transhumanists Are Asking: Should It Be Illegal To Indoctrinate Kids With Religion?” on Huffington Post. It was written by Zoltan Istvan, a transhumanist and self-proclaimed “visionary and philosopher.”

Firstly, I have a hard time taking anything published by the Huffington Post seriously. Secondly, I have a hard time taking anyone using the name “Zoltan” seriously. Thirdly, I have a hard time taking anyone who labels himself a “visionary” seriously. That said, it is important to study the propaganda of the other side carefully. You never know what kinds of truths you might come across amid all the lies.

The article does not really define what it considers “indoctrination", but I would assume transhumanists and atheists would argue that anything not scientifically proven could become indoctrination. Interestingly, Istvan starts his tirade against the handing down of religious beliefs by admitting that science has added very little to our overall knowledge of the universe. After all, human beings experience only a narrow spectrum of the world around us, and there is indeed much we do not know. For some reason, it does not dawn on atheists that perhaps our limited scientific observations of the universe do not necessarily outweigh or deny the existence of an intelligent design.

In order to distract from their fundamental lack of knowledge, modern collectivist governments and movements have always made the promise of technological utopia and endless abundance in order to sway the populace into supporting establishment power. We will all work far less, or we will never have to work at all. Shelter, food, health and wealth will be provided for us. Our free time will be spent studying the nature of the cosmos and perpetuating the cult of academia, protected by a benevolent technocratic governing body straight out of an episode of “Star Trek.”

Not surprisingly, John Maynard Keynes himself predicted in 1930 that technological advancement and economic abundance would result in a three-hour workday and infinite time to amuse oneself by the year 2030 in his essay “The Economic Possibilities For Our Grandchildren.”

This was the same essay in which Keynes referred to the financial concerns of many at the onset of the Great Depression as “misinterpretations” and “pessimism.”

Transhumanism, a mainstay of global elitism and the New World Order, also uses fantastical images of scientifically created contentment to sell itself to starry-eyed rubes packed into the circus tent of the technocratic carnival. The very essence of the movement is the argument that one day ALL knowledge of the universe will be obtained by mankind and that through this knowledge, we (a select few anyway) will obtain godhood.

Again, as in the Huffington Post column, the claim is that science knows all or will eventually know all and that whatever has not been dissected and observed by science like the conceptions of religion must, therefore, be dubious myth.

Ironically, there is far more scientific evidence of God and spiritual life than there is evidence against. So by the very standards many atheists hold dear, it is they who are peddling indoctrination rather than truth.

In the world of mathematics, the good friend of Albert Einstein, Kurt Godel, is famous (but not as famous as he should be) for writing what would be called the “incompleteness proof.” In mathematics, a proof is a statement that is ALWAYS true and can always be proven true. Godel’s proof shook the very foundations of the mathematical world, because it outlined the fact that all mathematical knowledge is limited by numerical paradox, and that humanity will never be able to define all things through mathematical means.

Global elites such as Bertrand Russell had spent years of effort attempting to prove that mathematics was the unbridled code of the universe and that the universe could be understood in its entirety through the use of numbers. Godel shattered this delusion with his incompleteness proof, establishing once and for all that math is limited, not infinite. The existence of mathematical paradox along with an undefinable “infinity” lends credence to the religious view that there are indeed some things man will never know, but at least he has the ability to prove that he can never know them.

In the world of quantum physics, the work of Werner Heisenberg, along with that of many other scientists, has shown that the very mechanics of the world around us are not at all what they seem and that traditional physics is only a hollow shell of knowledge limited by our ability to observe.

The Heisenberg Uncertainty Principle dictates that the observer of a particular physical state always affects the object being observed, making it impossible to know all the data necessary at one time to predict the future of that object. If a person hoped to become a god, he would certainly need to be able to tell the future; and to tell the future, one would need the ability to observe and record every aspect of every particle interacting in the environment around him. Any unknown quantity could change the outcome of any particular event. Heisenberg found that particles act very differently depending on how they are observed. In some experiments, he even discovered that individual particles appeared to be in two places at the same time, thus making them wholly unpredictable.

This behavior in the building blocks of matter is confounding to many in the realm of physics. Add to it the fact that scientists remain fixed on an endless and apparently futile quest to find the base particle that makes up the universe, and once again we find that the dreams of the transhumanist atheists to attain godhood fall terribly short.  In addition, the apparently "intelligent" behavior of inanimate particles under observation leads one to question whether the universe is really just a chaotic mess of matter, or a dynamic living machine.

In the realm of psychology, Carl Gustav Jung discovered through decades of research the existence of inborn psychological contents. That is to say, from the moment of our birth, human beings contain complex elements of knowledge and identity, meaning we are NOT merely products of our particular environments. Jung called these pieces of inherent information “archetypes.”

The most important aspect of archetypes for our discussion is the existence of opposing views, or “dualities.” The concepts of good and evil, the concepts of conscience as well as guilt and regret, are not necessarily taught to us. Rather, we are born with such elements already within us. The fact that we are born with an at least unconscious understanding of good versus evil means we have the potential power of choice, a power beyond the realm of environment and beyond the reach of would-be tyrants and collectivists. If this does not constitute scientific evidence of a human “soul,” then I do not know what does. The fact of archetypes is undeniable. The question is: Since they do not come from environment, where do they come from?

Istvan’s column doesn’t mention or regard any of the scientific evidence for the existence of an intelligent design. He merely argues that science is the only definable known quantity, and only the known quantity is an acceptable form of belief. But what if the known quantity is so limited as to make a society dangerously ignorant?

The article goes on to promote (somewhat shamelessly) the author’s book, in which the hero, a transhumanist atheist, is given the power to reshape society into any form he wishes. The hero questions whether he should remove religion from the picture entirely, for if religion were erased, wouldn’t the world finally be at peace? Istvan himself questions whether religious expression should be banned in the case of children, so that they are given the chance to “choose” what they wish to believe later in life. This, of course, disregards the fact that children are already born with the prospect of choice, which is why many children who grow up Christian do not practice it later in life, and why many children from atheist homes end up joining religious movements. The idea that all children are permanently molded or damaged by their parent’s unchecked beliefs is complete nonsense.

What the author reveals in his work of fiction is the greater threat of the atheist and transhumanist ideology — namely, the arrogant assumption that they know what is best for the world and the public based on their scientific observations, which are limited and often misinterpreted. This problem extends into the oligarchy of globalists, who adore the theories expressed in Plato’s “The Republic,” in which an elite cadre of “philosopher kings,” men who have achieved a heightened level of academic knowledge, are exalted as the most qualified leaders. However, leadership requires more than knowledge, even if that knowledge is profound. Leadership also requires compassion and informed consent, two things for which the elites have no regard.

The New World Order, an ideal often touted by globalists and defined by their own rhetoric as a scientific dictatorship in which collectivism is valued and individualism is criminalized, seems to me to be — in its ultimate form and intention — a battle for the human soul. They try to convince us that there is no such thing, that there is no inborn conscience, that there is a rationale for every action, that spiritualism is a frivolous and terroristic pursuit, and that cold logic and science, as defined by them, are the paths to prosperity and peace. They also seek to tempt the masses with imaginary stories of attainable godhood and artificial Eden, promises on which they can never deliver.  Anyone can point a gun at you and demand your fealty, but this is not what the elites want.  Rather, they want you to voluntarily resign yourself over to the hive mind and sacrifice your conscience in the process.  While one might argue over what it is they "truly" believe at the core of their cult, it is undeniable that collectivism, moral relativism, and atheism are their favorite promotional weapons.

The reactionary responses to my criticisms of the elitist philosophy will likely involve endless renunciations of crimes committed in the name of religious fervor. I agree; religion has always been exploited, usually by the elites themselves, to enslave as well as to murder. Even today, I hear some so-called Christians argue in favor of genocide using half-baked interpretations of biblical reference. But at bottom, I much prefer a world in which religious expression is free, rather than abolished in the name of an overarching zealotry in the form of a stunted mathematical morality. I prefer a world where the spiritual side of existence is allowed to add to observational awareness. Logic alone is not wisdom, after all. Wisdom is the combination of reason, intuition and experience.

I refuse to live under any form of theocracy, whether religious or scientific. The idea that we must choose between one or the other is a farce — a controlled debate. The individual soul (or whatever you want to call it) is the only thing that matters. It is important that we never forget that when we fight against the NWO, we are not just fighting for liberty; we are also fighting for something profoundly and inherently spiritual. Though we might not be able to define it, we can feel it. And that is enough.

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

Presented with no comment…

Since Nov. 10, Fox News Channel has referenced Gruber at least 779 times on air, while MSNBC has referred to Gruber 79 times. CNN has mentioned Gruber just 27 times over the same period.

 

Source: Politifact

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