Meanwhile In Socialist France…

It would appear that in order to appease the masses – despite his recent small bump in popularity post-Affair – France’s President Hollande has gone full Socialist-tard. Aside from promises to cut spending by EUR50 billion in the next 3 years (so less taxes?), Hollande has suggested…

  • FRANCE’S HOLLANDE SAYS FRANCE MUST PRODUCE “MORE AND BETTER”
  • HOLLANDE SAYS COMPANIES WILL IN RETURN BE GIVEN QUANTITATIVE TARGETS FOR HIRING, TRAINING
  • HOLLANDE SAYS PUBLIC SPENDING CUTS CAN BE MADE WHILE PRESERVING FRENCH SOCIAL MODEL

Channeling Stalin, he further calls for “more economic governance of the Euro-zone” and the creation of a Franco-German energy company and more tax-harmonization with the Germans. We are sure Merkel will be over-the-moon at that suggestion.

So hitch up to Germany.. (and if they won’t then that’s a victory for nationalism also)

  • *HOLLANDE CALLS FOR MORE ECONOMIC, SOCIAL COHESION WITH GERMANY
  • *HOLLANDE SAYS GOVT TO CREATE 50,000 JOBS FOR YOUTH IN 2014

It’s just that easy…

So appease the peons with spending cuts..

  • *HOLLANDE REITERATES THAT SPENDING MUST BE CUT TO REDUCE TAXES

then slam with Stalin-esque central-planning and control…

  • *HOLLANDE CALLS FOR MORE ECONOMIC GOVERNANCE OF EURO ZONE

But in the interests of keeping his base happy… he clarified…

  • *HOLLANDE SAYS HE HASN’T TURNED INTO A FREE MARKETEER


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/1ZUS0FZkGU0/story01.htm Tyler Durden

American Government Backed Murderous Mexican Drug Cartel for More Than a Decade

Time reports:

The U.S. government allowed the Mexican Sinaloa drug cartel to carry out its business unimpeded between 2000 and 2012 in exchange for information on rival cartels, an investigation by El Universal claims.

 

***

 

Dr. Edgardo Buscaglia, a senior research scholar in law and economics at Columbia University, says that the tactic has been previously used in Colombia, Cambodia, Thailand and Afghanistan.

 

“Of course, this modus operandi involves a violation of public international law, besides adding more fuel to the violence, violations of due process and of human rights,” he told El Universal.

 

Myles Frechette, a former U.S. ambassador to Colombia, said while that the problem of drug trafficking in Colombia persists, the tactic of secret agreements had managed to reduce it.The period when the relationship between the DEA and Sinaloa was supposed to have been the closest, between 2006 and 2012, saw a major surge of violence in Mexico, and was the time when the Sinaloa cartel rose significantly in prominence.

Business Insider writes:

There have long been allegations that Guzman, considered to be “the world’s most powerful drug trafficker,” coordinates with American authorities.

 

But the El Universal investigation is the first to publish court documents that include corroborating testimony from a DEA agent and a Justice Department official.

Fox News reports:

According to the motion, the deal was part of a ‘divide and conquer’ strategy, where the U.S. helped finance and arm the Sinaloa cartel, through Operation Fast and Furious, in exchange for information that allowed the D.E.A. and FBI to destroy and dismantle rival Mexican cartels.

 

***

 

“Under that agreement, the Sinaloa Cartel, through Loya, was to provide information accumulated by Mayo, Chapo, and others, against rival Mexican Drug Trafficking Organizations to the United States government. In return, the United States government agreed to dismiss the prosecution of the pending case against Loya, not to interfere with his drug trafficking activities and those of the Sinaloa Cartel, to not actively prosecute him, Chapo, Mayo, and the leadership of the Sinaloa Cartel, and to not apprehend them.”

 

***

 

The motion claims Mayo, Chapo and Zambada- Niebla routinely passed information through Loya to the D.E.A. that allowed it to make drug busts. In return, the U.S. helped the leaders evade Mexican police.

 

It says: “In addition, the defense has evidence that from time to time, the leadership of the Sinaloa Cartel was informed by agents of the DEA through Loya that United States government agents and/or Mexican authorities were conducting investigations near the home territories of cartel leaders so that the cartel leaders could take appropriate actions to evade investigators– even though the United States government had indictments, extradition requests, and rewards for the apprehension of Mayo, Chapo, and other alleged leaders, as well as Mr. Zambada-Niebla.”

Salon notes:

Under the remit of the War on Drugs, millions of U.S. citizens have faced arrest and jail time for minor, nonviolent charges. All the while, it has been revealed, the U.S. government has been enabling billions of dollars worth of drugs to flood into the country from Mexico because of shady deals with the notorious Sinaloa cartel.

 

***

 

Sinaloa (believed to supply 80 percent of Chicago’s street drugs) has been working with U.S. authorities since 2000 to provide information in return for immunity and undisturbed drug trafficking. Court documents obtained by El Universal show testimony from DEA and DOJ officials affirming the relationship.

The U.S. government has – at least at some times in some parts of the world – long protected drug operations. (Big American banks also launder money for drug cartels. See this, this, this and this.  Indeed, drug dealers kept the banking system afloat during the depths of the 2008 financial crisis.)

And opium production is at an all-time high under the American occupation of Afghanistan.

Is American backing of the Sinaloa drug cartel another instance of U.S. government involvement in the drug trade?  Or a misconceived attempt to back one devil (the Sinaloa cartel has been responsible for massive violence in Mexico) against another?

This is analogous to America’s backing of the most dangerous and violent Muslim terrorists for decades … in order to contain rival Muslim factions.

Absolutely idiotic …


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/b1y_gb3Eo5w/story01.htm George Washington

Gold Monkey-Hammered As Stocks Spike

Well that escalated quickly… As Europe closes, the precious metals complex is slaughtered on the altar of higher stocks and lower bond prices…

 

We can only imagin the fiduciary that would wait til the last mnute to bulk sell as much nominal paper gold and silver as this…

 

And for a sense of the volume…

 

Perhap best summed up thus:


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/r9odw_ktwx4/story01.htm Tyler Durden

VIX Slam Steadies Stock Slump

Yesterday we saw that JPY crosses lost their momentum-igniting effect on stocks as US equities suffered. This morning has seen the machines fall back to their old standard – the VIX slammer. However, while VIX is being slammed, stocks are not rising as much as expected. Trannies are back into the green year-to-date but we note more importantly that this most recent wrench higher has lifted S&P 500 futures to yesterday’s closing VWAP – a crucial levels for market-making algos to make money. Silver is spiking once again; bonds are selling off very modestly (+2bps) and the USD is fading slightly.

S&P back at yesterday’s VWAP on this ramp… (let’s see if it holds or the big boys sell at VWAP)

 

helped by VIX…

 

Which has lifted Trannies green YTD…

 

And silver is lifting too once again…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/6bP94KQyaJ8/story01.htm Tyler Durden

France’s Hollande Sees Approval Ratings Jump After Affair With An Actress

Having tumbled to record lows – amid a crumbling economy, soaring unemployment, and staggering taxation – it would appear French President Francois Hollande has figured out how to raise his approval rating. As Bloomberg reports, the Socialist president’s approval rating jumped 2 points to 26 percent, according to an LH2 poll, after a magazine reported that he’s having an affair with actress Julie Gayet. While Hollande “deeeply deplored” this intrusion into his private life, we suspect we won’t mind so much now that the poll numbers are out. This ‘affair’ strategy backfired for Clinton but may just be what Obama and Abe need…

 

 

Having fallen non-stop for a year, the first poll post-“Affair” has seen Hollande’s apprval jump…

 

Via Bloomberg,

French President Francois Hollande’s popularity rose from a record low, according to a poll conducted after a magazine reported that he’s having an affair with actress Julie Gayet.

 

The Socialist president’s approval rating jumped 2 points to 26 percent, according to an LH2 poll for Le Nouvel Observateur magazine. LH2 interviewed 1,018 adults on Jan. 10 and 11. No margin of error was given.

 

In a seven-page photo expose, French weekly Closer reported on Jan. 10 that Hollande, 59, had a liaison with the 41-year-old French actress. Hollande said in a statement that he “deeply deplored” the magazine’s intrusion into his private life.

 

In contrast with the U.S., where Former President Bill Clinton was impeached by the House of Representatives for misleading investigators about his affair with intern Monica Lewinsky, Hollande’s dalliance didn’t render him more unpopular.

 

A separate Ifop poll showed that 77 percent of French voters consider the affair a private matter. Hollande is set to be queried about the liaison when he holds his twice-yearly press conferences tomorrow.

 

Hollande isn’t married, although he has been in a long-term relationship with journalist Valerie Trierweiler, 48. Before that, he was with former French presidential candidate Segolene Royal, with whom he has four children. The two were not married.

 

Trierweiler was admitted to the hospital on Jan. 10 for “rest and for some tests,” Le Parisien reported. Her office declined to say to where she was admitted or when she may be discharged.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/tG2wn7JiDxU/story01.htm Tyler Durden

France's Hollande Sees Approval Ratings Jump After Affair With An Actress

Having tumbled to record lows – amid a crumbling economy, soaring unemployment, and staggering taxation – it would appear French President Francois Hollande has figured out how to raise his approval rating. As Bloomberg reports, the Socialist president’s approval rating jumped 2 points to 26 percent, according to an LH2 poll, after a magazine reported that he’s having an affair with actress Julie Gayet. While Hollande “deeeply deplored” this intrusion into his private life, we suspect we won’t mind so much now that the poll numbers are out. This ‘affair’ strategy backfired for Clinton but may just be what Obama and Abe need…

 

 

Having fallen non-stop for a year, the first poll post-“Affair” has seen Hollande’s apprval jump…

 

Via Bloomberg,

French President Francois Hollande’s popularity rose from a record low, according to a poll conducted after a magazine reported that he’s having an affair with actress Julie Gayet.

 

The Socialist president’s approval rating jumped 2 points to 26 percent, according to an LH2 poll for Le Nouvel Observateur magazine. LH2 interviewed 1,018 adults on Jan. 10 and 11. No margin of error was given.

 

In a seven-page photo expose, French weekly Closer reported on Jan. 10 that Hollande, 59, had a liaison with the 41-year-old French actress. Hollande said in a statement that he “deeply deplored” the magazine’s intrusion into his private life.

 

In contrast with the U.S., where Former President Bill Clinton was impeached by the House of Representatives for misleading investigators about his affair with intern Monica Lewinsky, Hollande’s dalliance didn’t render him more unpopular.

 

A separate Ifop poll showed that 77 percent of French voters consider the affair a private matter. Hollande is set to be queried about the liaison when he holds his twice-yearly press conferences tomorrow.

 

Hollande isn’t married, although he has been in a long-term relationship with journalist Valerie Trierweiler, 48. Before that, he was with former French presidential candidate Segolene Royal, with whom he has four children. The two were not married.

 

Trierweiler was admitted to the hospital on Jan. 10 for “rest and for some tests,” Le Parisien reported. Her office declined to say to where she was admitted or when she may be discharged.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/tG2wn7JiDxU/story01.htm Tyler Durden

What Comes Next: A Refreshing Dose Of Very Surprising Truthyness From Deutsche Bank

One would never expect the following dose of unstatus quo-like truthyness to come from Europe’s mega bank (with a few tens of trillions of derivatives on its books). Yet, that’s exactly the source, courtesy of its best strategist, Jim Reid.

It’s not a market that rewards caution at the moment. The consensus view has not been an issue so far but will become more of one if an event arises that forces a few of these investors to turn. At this point there will be very limited liquidity and potentially very gappy markets. However for now the consensus positioning and their general desire to keep adding is helping credit. Our view continues to be positive on the asset class but mostly on the basis that central banks won’t be able to withdraw stimulus very easily in 2014. Indeed the ECB and BoJ may be increasing it while the Fed may find it more difficult than most think to get from the $75bn/month now to zero. However as we’ve said a couple of times if we’re wrong on central banks we may get bailed out by healthier macro conditions which also help spreads tighten. So in these artificial markets the percentages are skewed towards the bulls for now.

 

In our outlook we did think that setbacks might happen earlier in the year rather than later as markets interpreted pockets of strong data as a reason to doubt central banks liquidity. As the year progresses though, we think investors (and central bankers themselves) will be resigned to appreciate that markets are still vulnerable without them. The era of financial repression is in the early stages still not the late  stages. Markets will need help funding at low yields for many years to come.

Yes they will…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/PZc3grW54B8/story01.htm Tyler Durden

Spanish Lending Rates Soar To Highest Since 2008

Despite sovereign bond yields plumbing new record lows and the Prime Minister proclaiming (against Draghi’s advice) that the nation has turned the corner and is out of the crisis; Spain’s record unemployment and record loan delinquency is showing up in a major credit-creation-crushing way for small businesses. As Bloomberg’s Jonathan Tyce reports, Spanish new business lending rates just experienced the largest 2-month surge in over a decade to their highest since 2008. At 4.04%, new business loans trade over 300bps above two-year sovereign debt (and are diverging) as the efforts of Europe’s ‘whatever it takes’ central bank are being entirely wasted in terms of reaching the Keynesian growth-driving economy. We suspect this surge will once again raise talk of a rate-cut (and expose the impotence of the ECB’s transmission mechanisms).

 

 

Chart: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/tyDbgR5Ob1M/story01.htm Tyler Durden