Russia Accuses US Mercenaries Of Inciting Civil War In Ukraine

In response to claims by the Ukraine government (and the west) that Russia provoking trouble in Eastern Europe – with The White House’s Jary Carney even suggesting that pro-Russia demonstrators were paid – Russia’s foreign ministry has responded. Posting via their Facebook page, Russia urged Ukraine to halt any interior military preparations which could instigate a civil war. But the kicker, for which we anxiously await a rebuttal, is Russia’s comment that they “are particularly concerned that the operation involves some 150 American mercenaries.”

 

The US administration perspective… (via WaPo)

In Washington, the Obama administration expressed deep skepticism that the scattered uprisings and building takeovers in cities such as Donetsk and Kharkiv have been spontaneous. “There is strong evidence suggesting some of these demonstrators were paid,” said Jay Carney, the White House spokesman.

 

If Russia moves into eastern Ukraine, either overtly or covertly, this would be a very serious escalation,” Carney said.

The Ukrainian perspective…

The Ukrainian government dispatched its highest-level police and security officials to the region Monday in an effort to put down the separatist agitation.

 

Kiev is confronting an attempt to “destabilize the situation,” Prime Minister Arseniy Yatsenyuk said at an emergency cabinet meeting Monday. “The plan is for foreign troops to cross the border and seize the country’s territory, which we will not allow.”

And the Russian perspective, as ITAR-TASS reports,

The Russian Foreign Ministry urged Ukraine to halt any interior military preparations, which could instigate a civil war in the country, the ministry was quoted as saying on its Facebook.com account.

 

“According to our information, units of the Interior troops and Ukraine’s national guards as well as militants from the illegal armed formation ‘The Right Sector’ are being amassed in the southeastern parts of Ukraine and in the city of Donetsk,” the ministry said.

 

We are particularly concerned that the operation involves some 150 American mercenaries from a private company Greystone Ltd., dressed in the uniform of the [Ukrainian] special task police unit Sokol,” the ministry said.

It seems the tit-for-tat sanctions have escalated to tit-for-tat explanations of who is escalating. However, whet is clear is the Russian warning which seems to implicitly be ‘don’t start this or we will finish it’. All along Putin has claimed this is to protect his countrymen in a foreign nation…

 

Here is some color on Greystone:

Greystone began providing services in 2004 as an affiliate of what is now Xe Services. In 2010, Greystone was acquired by current management. Greystone now operates as a standalone, management owned provider of aviation and protective support services and training.

 

Greystone has provided services in over ten countries worldwide. Greystone has offices in Bermuda, Chesapeake, Virginia and the United Arab Emirates. Mailing addresses are listed to the right.

 

Greystone provides highly trained, sophisticated and culturally knowledgeable personnel to support your operations. We quickly create turn-key solutions that are tailored to meet each customer’s unique requirements and circumstances. We call in the best people to create the best solutions to support our customer’s mission and ensure their success.

 

Our personnel are our most important asset. Greystone’s worldwide network permits the company to select the right people. We draw from the premier law enforcement agencies, militaries and corporate entities throughout the world. Greystone carefully screens and evaluates all candidates to ensure only the highest caliber individuals are selected. Our on-site management team ensures that our personnel employ best practices while executing projects efficiently and effectively.




via Zero Hedge http://ift.tt/PV7ljf Tyler Durden

The Father Of High Speed Trading Speaks: “The Market We Created Is A Casino; A Complete Mess; A Rigged Game”

While simplistic economist hacks and conflicted industry practitioners who stand to lose their entire revenue stream should HFT be liquidated, not to mention pagreview trolling journos, are suddenly not only experts in HFT, but are convinced allegations that high frequency trading rigs markets are blown out of proportion, here is what one of the actual pioneers of, and erstwhile legends in, computerized trading – the billionaire founder of Timber Hill and Interactive Brokers Thomas Peterffy – the man NPR dubbed the “father of high-speed trading” has to say.

The following excerpt is courtesy of Scott Patterson’s book Dark Pools: High-Speed Traders, AI Bandits, and the Threat to the Global Financial System, which largely covers the same subject matter as Michael Lewis, and which has been profiled here previously.

* * *

On the morning of October 11, 2010, Thomas Peterffy stepped onto the dais of the ornate Opéra Salon on the ground floor of the Inter-continental Le Grand Hôtel in Paris. It was a gala event, the fiftieth annual meeting of the World Federation of Exchanges. Attendees included Bill Brodsky, chairman of the Chicago Board Options Exchange, the NYSE’s Duncan Niederauer, Christine Lagarde, French minister for the economy and future head of the International Monetary Fund, Nasdaq CEO Bob Greifeld, and Atsushi Saito, CEO of the Tokyo Stock Exchange.

The speaker who would set off the most fireworks was Peterffy, the founder of Timber Hill, one of early users of Island. He looked out over the podium at the upturned faces of his peers and grimaced.

Peterffy had become extremely disillusioned with the market he’d helped create. It wasn’t just the deceptive tactics of firms like Trillium, it was the unregulated speed traders who were picking off his own firm’s orders, with no firm obligation to stick in the market during tough times. The stock market had been turned into a Wild West of dueling algos — and some firms, it seemed, had special advantages. Like Haim Bodek at Trading Machines, Peterffy was steamed that his orders were getting clipped time and time again. He wasn’t going to take the abuse without fighting back.

He cleared his throat, adjusted his glasses, and launched into his speech.

“An exchange used to be a place, yes, a physical place, where people would come together to buy or sell, hoping to achieve the best price for themselves,” he said. “The more the exchange was able to attract all of the buy and sell interests in a product, the more the prices on the exchange would reflect the true state of supply and demand.”

It was the old mantra: liquidity breeds liquidity. But something had changed.

“In the last twenty years came computers, electronic communications, electronic exchanges, dark pools, flash orders, multiple exchanges, alternative trading venues, direct access brokers, OTC derivatives, high-frequency traders … Reg NMS in the U.S. — and what we have today is a complete mess.”

He looked out at the crowd. Dead silence. Peterffy hadn’t bothered to warm the audience up with a joke, a humorous anecdote. He cut straight to the point — and most in that room didn’t like what he was saying.

“It is not so much anymore that the public does not trust their brokers. They do not trust the markets, the exchanges, or the regulators either. And why should they, given our showing the past few years? To the public the financial markets may increasingly seem like a casino, except that the casino is more transparent and simpler to understand.”

Visible tension spread through the room. Did Thomas Peterffy just call the market a casino? That was an attack they might have expected from the likes of Arnuk and Saluzzi or Senator Ted Kaufman — but from the founder of Timber Hill and Interactive Brokers, the godfather of electronic trading?

Peterffy, of course, was fully aware that his words seemed to contradict his own history.

“I must confess to you that I was an ardent proponent of bringing technology to trading and brokerage. Unfortunately, I only saw the good sides. I saw how electronic trading and record-keeping could be used to force people to be more honest, to make the process more efficient, to lower transaction costs and to bring liquidity to the markets. I did not see the forces of fragmentation and the opportunity for people to use technology to keep to the letter but avoid the spirit of the rules — creating the current crisis.”

He gazed out at his audience. Peterffy wasn’t shocked to see the stern faces, the shaking heads and averted eyes. He was certain that he’d become their enemy — and he had little hope that they would listen. The computer-trading elite would never admit that the markets they’d created were deeply flawed. Still, he kept hammering away.

“It is vitally important that we bring an end to this crisis of trust before it spreads any further. That we bring back order, fair dealing, and trust in the marketplace. The financial markets of … the world’s developed countries are at a turning point. Technology, market structure, and new products have evolved more quickly than our capacity to understand or control them. The result has been a series of crises over the past few years that have caused many investors to lose confidence or to think that the whole system is a rigged game.”

After Peterffy finished speaking, there was silence. Then a scattered handclap. And then the room burst into loud applause.

Everyone realized: Peterffy had actually done it — he’d come out and said what so many were thinking, what they all knew deep down. The market was a complete mess. And the old guy was the only one with the balls to stand up there and call a spade a spade.

* * *

Peterffy’s full speech can be read below (pdf)




via Zero Hedge http://ift.tt/1kkEy5F Tyler Durden

SPX Index EBITDA

Investors are shocked at the current sell-off as hope/hype growth expectations fade rapidly, momentum junkies question their guru-ness, and earnings all of a sudden matter. In the hopes of shining a little light on that “reality” we suspect the the following chart – ahead of Q1 earnings data – will clarify just how much hope is out there.

 

 

Chart: Bloomberg




via Zero Hedge http://ift.tt/PUR3qM Tyler Durden

Ex-ABN Amro CEO Killed Family Before Hanging Himself

Sadly, as suspected – and in line with his CFO in 2009 – the reported death of Jan Peter Schmittmann was indeed suicide. The ex-CEO of ABN Amro hanged himself, but only after murdering his wife, Nally, and 22 year-ol daughter Babette. As Bloomberg reports, a farewell letter was found in the house, but authorities declined further comment on its contents. Schmittmann’s family was cited as saying in the statement that “we knew Jan Peter struggled with severe depression,” and added that their “first concern now is supporting the remaining daughter in coping with this indescribable grief.” Aweful…

As Bloomberg reports,

De Telegraaf reported today that Schmittmann hanged himself, citing two people it didn’t identify.

Bloomberg explains Schmittmann’s history:

Schmittmann joined ABN Amro Holding NV, once among Europe’s biggest banks, in 1983 as an assistant relationship manager and was named head of the lender’s Dutch unit in 2003. As a member of the bank’s executive board, he was responsible for restructuring it along the lines agreed by Royal Bank of Scotland Group Plc, Fortis and Banco Santander SA in their three-way takeover of the lender in 2007.

 

A year after the biggest financial-services takeover in history, the credit crunch drove Fortis to the verge of collapse, forcing the Netherlands to take over its Dutch banking and insurance units, including assets of the former ABN Amro in 2008. The Dutch asked Gerrit Zalm to lead the company now called ABN Amro Group NV.

 

On the eve of the nationalization, Schmittmann was dismissed by the Dutch Finance Ministry, he told lawmakers in a 2011 hearing. He received an 8 million-euro ($11 million) severance payment, less than what he was entitled to under his contract and more than the Dutch government sought to pay.

Dutch Police Statement (via Google Translate):

On Saturday April 5 officers found three lifeless bodies in the house. It turned out to be the father, mother and the youngest daughter of family Schmittmann. The entire Saturday performed the Forensic Investigation research in and around the home. The first indications of the police pointed to a possible family drama. The eldest daughter of the family was not at home and is caught by her family.

 

Further investigation

 

To exclude other possible scenarios were, in addition to the search for clues in the home, research bodies carried out to establish the cause of death. Information was also gathered from family and friends of the family to get what had happened as possible a clear picture. Dutch Forensic Institute confirmed the suspicions that the police had. The mother and daughter are killed by the father, the father then committed suicide. The house is a suicide note found.

 

Are related to privacy and respect for the family, no further statements made about the time of death, the manner of death and the contents of the suicide note.

 

Explanation family Schmittmann

 

The family has stated: “We are deeply shocked and beaten by this unimaginable news. We knew that Jan Peter struggled with severe depression that would eventually lead to these events is still incomprehensible to us, our first concern… now supporting the other daughter of the family in the processing of this indescribable grief. We hope to be able to do. “in peace and seclusion”

Aweful…




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

Welcome To Terminus

Submitted by Jim Quinn of The Burning Platform blog,

“Life improves slowly and goes wrong fast, and only catastrophe is clearly visible.”

Edward Teller

I was a late arrival to the Walking Dead television program. I don’t watch much of the mindless drivel passing for entertainment on the 600 worthless channels available 24/7 on cable TV. I assumed it was another superficial zombie horror show on par with the teenage vampire crap polluting the airwaves. Last year a friend told me I had to watch the show. I was hooked immediately and after some marathon watching of seasons one and two, I understood the various storylines and back stories. What the show doesn’t openly reveal is the deeper meanings, symbolism, and lessons we can learn from viewing human beings trying to survive in a post-apocalyptic world. In my opinion, the horror and gore is secondary to the human responses to horrific circumstances and the consequences of individual and group decisions to their survival.

As the end of season four approached, the disbursed characters were descending upon a place called Terminus. They were drawn by the intriguing and hopeful signs posted at various railroad junctions promising sanctuary, community and survival. Of course the name Terminus does not sound very inviting or hopeful. There are multiple possible meanings regarding Terminus. The Roman god Terminus protected boundary markers and sacrifices were performed to sanctify each boundary stone. The bones, ashes, and blood of a sacrificial victim, along with crops, honeycombs, and wine, were placed into a hole at a point where estates converged, and the stone was driven in on top. Maintaining boundaries and sacrifice are major themes throughout the series.

The show is set in the metropolitan Atlanta area of Georgia and the surrounding countryside. It just so happens that during the 1830s Terminus was the name of a settlement at the end of the Western and Atlantic railroad line. That settlement is now Atlanta. Terminus is also the title of the final poem ever composed by Ralph Waldo Emerson. The poem focuses on a conversation between the author and the god Terminus, discussing the author’s forthcoming death. The message of the poem is to resist fear and prepare for death. The destination is worth the journey.   

“As the bird trims her to the gale,

I trim myself to the storm of time,

I man the rudder, reef the sail,

Obey the voice at eve obeyed at prime:

“Lowly faithful, banish fear,

Right onward drive unharmed;

The port, well worth the cruise, is near,

And every wave is charmed.”

We are only given a short time on this earth and the end of the line will be the same for everyone. What matters is how we conduct ourselves during our own journey towards our personal Terminus. Have we served as a virtuous example for our children, sacrificed for others, and benefited humanity or have we displayed greed, avarice and selfishness during our trek through life? As we approach our own meeting with destiny, the actions and morality of individuals will matter. I don’t know the motivations of the writers creating the themes for the Walking Dead, but the show connects with me on a number of levels. I look around and see hordes of zombies everywhere.

Zombification of America

“The real hopeless victims of mental illness are to be found among those who appear to be most normal. Many of them are normal because they are so well adjusted to our mode of existence, because their human voice has been silenced so early in their lives that they do not even struggle or suffer or develop symptoms as the neurotic does. They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness. These millions of abnormally normal people, living without fuss in a society to which, if they were fully human beings, they ought not to be adjusted.” – Aldous Huxley – Brave New World Revisited

The vast majority of the population in the post-apocalyptic world of the Walking Dead is mindless zombies driven by only their need to feed upon human flesh. They are infected with a disease that disables the cognitive portion of their brains and leaves them as slobbering predatory zombies seeking to satisfy their vile needs. They are referred to as “walkers” or “biters” as they aimlessly roam the countryside seeking human flesh. Everyone bitten or killed by a zombie is infected and turned into a zombie. The only way to stop them is by destroying their brain. The relentless violence and gore is not for the squeamish, but is probably a realistic portrayal of the brutishness and harsh conditions that will overwhelm this country once the electrical grid goes down, fuel becomes scarce and the global supply chain fails. Our just in time society is about one week from chaos, lawlessness, starvation and death on a grand scale.

As I watch the hordes of hideous brain dead zombies shuffling across the apocalyptic landscape seeking to satiate their basest cravings I can’t help but see the parallels with the millions of mindless tattooed obese slobs waddling across mall parking lots past vacant store fronts staring zombielike at their iGadgets as they seek to satisfy their basest desires at Macy’s and Chipotle. A virus has overspread our country causing a vast swath of the population to gratuitously assuage their every want without thinking of the consequences. The sickness is caused by being imprisoned for twelve years in government run public schools, watching thousands of hours of propaganda emitted by the corporate media, viewing hundreds of brain cell destroying reality TV shows, reading and sending thousands of texts and tweets, and being overwhelmed by the delusional belief spending more than they make, saving nothing, and piling up mountains of debt is the path to success in our contaminated society.

In the show there is no clear explanation as to why the majority of the population have been infected and turned into zombies, while a tiny minority is unaffected and able to think critically and act rationally. It is revealed that all living people are infected with the zombie virus, but it remains dormant in a minority of the survivors. Death by any means triggers the virus and turns the corpse into a mindless flesh eating zombie. There are 318 million Americans and a majority of them fall into the category of zombies in my estimation. Every American has the zombie virus within them. It has been incubated by corrupt vote seeking politicians, control hungry government sociopaths, mind numbingly worthless public education, and the relentless dumbing down through corporate media propaganda and vacuous reality TV entertainment. Once cogent thinking aware citizens have been zombiefied into mindless impulsive consumers.

How can you not see the parallels between American society and the zombies in the Walking Dead? Walk down any city street in America and you see hordes shuffling along staring with blank faces and glazed over eyes at their iGadgets. Black Friday is identical to flinging a freshly slaughtered hog in front of the flesh eating zombies. Americans flock to malls across our apocalyptic suburban sprawl landscape and proceed to stampede, gouge, and punch their way to an fantastic bargain on a Chinese slave labor produced microwave they must have to cook their toxic frankenfood created by one of our corporate food conglomerates. The Black Friday crowds actually make the zombies from the Walking Dead seem well behaved. While the American zombies are shambling through superficial lives of pleasure seeking, mass consumption, and a delusional faith in debt based wealth, there is still a minority of rational thinking people who can control their impulses and resist the disease devouring our culture.

 

“Our economy is based on spending billions to persuade people that happiness is buying things, and then insisting that the only way to have a viable economy is to make things for people to buy so they’ll have jobs and get enough money to buy things.” ? Philip Slater                  

Collapse Will Be Sudden

“That’s the thing about the collapse of civilization. It never happens according to plan – there’s no slavering horde of zombies. No actinic flash of thermonuclear war. No Earth-shuddering asteroid. The end comes in unforeseen ways; the stock market collapses, and then the banks, and then there is no food in the supermarkets, or the communications system goes down completely and inevitably, and previously amiable co-workers find themselves wrestling over the last remaining cookie that someone brought in before all the madness began.” ? Mark A. Rayner – The Fridgularity

What you note after watching a few episodes of the Walking Dead is that collapse happened suddenly. Cities, towns, houses and highways remained relatively intact. The decay and deterioration caused by neglect and abandonment are the only visible signs that modern civilization has ceased. The show highlights the life-threatening difficulty of enduring on a day to day basis without the certainty of shelter, food, water, and fuel. The average asleep American isn’t prepared to last one week without the basics of modern life. They haven’t stocked any food, water or fuel in case of an emergency. Their normalcy bias keeps them from even considering the high likelihood of even a natural disaster caused by a hurricane, snowstorm, or earthquake. Recent examples of most people’s complete helplessness were the snow and ice storms that struck this past winter and hurricanes Sandy and Katrina. Without power and access to food and water, modern society breaks down quickly, with chaos, looting and anarchy only days away.

It is unlikely that collapse of civilization as we know it will happen due to some extreme event such as nuclear war, super volcano, or asteroid. When our central banker masters of the universe trigger the next financial system collapse, with no monetary bullets of debasement left in their pop gun, the resulting chaos when ATMs stop spitting out $20 bills and EBT cards for 47 million people stop functioning at Wally World will be epic. We got a glimpse into the future this past October when the EBT system went down in several states for a few hours on a Saturday afternoon. Zombies began to ransack Wal-Mart stores attempting to steal as much as they could get away with. Chaos, anger and criminal behavior was virtually instantaneous. A vast swath of EBT dependent zombies live in our numerous urban ghettos and when the EBT system goes down permanently violence will quickly erupt. Police will be vastly out-numbered, hungry mobs will become armed gangs of violent looters burning down their ghettos, ransacking and plundering businesses, stores and homes, and stealing everything that isn’t nailed down. Visualize the L.A. riots after the Rodney King verdict in every urban area in the country.

The fragility of our debt financed oil dependent just in time global supply chain system is beyond the comprehension of the average zombie American. They are too distracted by mass consuming the products dependent on that very same fragile scheme. They are clueless zombie-like dupes who believe $20 bills magically appear in ATMs, Funyuns and Cheetos miraculously materialize on Wal-Mart shelves, gasoline endlessly bubbles up from the ground into the hose they stick in their $40,000 monster SUVs “bought” with a 0% seven year loan from Ally Financial, and that enchanted plastic card with a magnetic strip empowers them to fulfill every craving like a zombie feeding on a dead carcass.

There is a worldwide currency and petroleum war being waged today as too much fiat currency is chasing a dwindling amount of cheap petroleum supplies. The developed world has experienced a century of relative illusory prosperity as cheap easy to access fuel and cheap easy to print fiat currency have led zombies to believe progress and prosperity are their god given right. The most highly educated zombies will be the most shocked when they realize the reality they believed was all an illusion. The Starbucks “Triple, Venti, Half Sweet, Non-Fat, Caramel Macchiato” crowd who isolate themselves in their 100% financed 5,000 square foot luxury cookie cutter brick McMansions amidst 200 other identical McMansions occupied by reclusive strangers in enclaves pretentiously named The Preserve at Meadow Lakes, and driving multiple leased BMWs, are about as prepared for a collapse of modern society as a helpless child. The suburban wasteland of strip malls, office parks, and fast food joints is completely dependent upon an endless supply of cheap oil and cheap credit.

The cracks in this delusionary foundation are visible for all to see as Space Available signs outnumber actual businesses, pothole dotted highways deteriorate, sewer lines crack, and houses in disrepair outnumber those being kept up. It takes money to keep a home from deteriorating and it happens to be in short supply for 90% of the population. Despite the non-stop money printing operation at the Fed and the mainstream media fantasy stories of shale oil energy independence, the suburban dream is turning into a nightmare. When the inevitable financial implosion strikes in the next few years, the illusion of progress will come to an end. The inner cities will explode in violence and will burn. The police will be helpless and scared. There will be death on a large scale.

Suburbia will turn into a lawless landscape where neighbors turn on each other, as they have failed to create real communities. The isolation and seclusion which have marked suburban existence for the last thirty years will contribute to the creation of criminal gangs looting and pillaging stores, businesses and unprotected homes. After the collapse the only people likely to survive relatively unscathed are rural folk. Farmers, ranchers and those capable of living off the land have the abilities to endure a breakdown in our modern society. These people are prepared, know how to use firearms and create communities of self-sufficiency. No one will thrive in the world coming our way, but those not dependent upon or tied to our modern societal paradigm have a better chance to survive.      

“If people feel lost and alone and helpless and broken and hopeless today, what will it be like if the world really begins to come apart at the hinges?” ? Brandon Andress – And Then the End Will Come!

Individualism vs Community

“The values to which people cling most stubbornly under inappropriate conditions are those values that were previously the source of their greatest triumphs.” ? Jared Diamond – Collapse: How Societies Choose to Fail or Succeed

Our society has always glorified rugged individualism. We celebrate individual accomplishments and make heroes of those who have gone it alone and triumphed either in business, politics, sports, or the arts. Overcoming tremendous obstacles and going it alone in the face of adversity has been the narrative Americans admire and seek to emulate. Even the reality TV shows about preppers focus on individuals who plan on going it alone when civilization enters collapse mode. These rugged loners take pride in individualism, build bunkers, amass small arsenals and stockpile food and supplies. They will likely survive the initial onslaught of collapse and first wave of violence. But how long can an individual expect to survive alone in a Walking Dead environment? The traits which were appropriate and rewarded in modern society will be inappropriate and fatal in a post-modern society. A lesson from the show is clearly that a community of like-minded individuals working together has a better chance at long-term survival than a loner. Just make sure you join the right community.

With hordes of flesh eating automatons roaming the countryside it was essential for the living to form communities in order to fend off the zombies, protect each other, provide shelter, and forage for food. An individual alone had no chance at survival as falling asleep would ultimately prove fatal if a zombie stumbled upon your camp. The group led by Sheriff Rick Grimes eventually creates a community within the gates of an abandoned prison. The irony of seeing mindless throngs of soulless killers attempting to breakdown the fences to get “into” the prison is not lost on the audience. At first, the occupants of the prison would leave on foraging/pillaging missions to nearby cities and towns attempting to find food, medical supplies, gasoline and any other essential necessities of life. Eventually Hershel, the wise old man of the community, convinced Rick that cultivating the soil, sowing seeds and growing their own food was the only chance for their community to thrive over the long haul. Working with your hands is refreshing to the soul. Jesus’ Parable of the Sower immediately comes to mind.

Hearken; Behold, there went out a sower to sow: And it came to pass, as he sowed, some fell by the way side, and the birds of the air came and devoured it up. And some fell on stony ground, where it had not much earth; and immediately it sprang up, because it had no depth of earth: But when the sun was up, it was scorched; and because it had no root, it withered away. And some fell among thorns, the thorns grew up, and choked it, and it yielded no fruit. And other fell on good ground, did yield fruit that sprang up and increased; and brought forth, some thirty, and some sixty, some an hundred. He said unto them, He that has ears to hear, let him hear. Mark 4:3-9

Some communities are evil at their core and will commit malevolent atrocities. Some communities will appear ethical, but when hardship strikes they will fall back to their wicked ways. Communities of those addicted to riches and wealth will ignore the pleas of the downtrodden and wail and gnash their teeth when their worldly wealth evaporates.  A fruitful community that chooses decent honorable leaders, adopts a moral code, treats all members with respect, encourages hard work and accountability, and plans for the future, will reap the benefits of sustainability and stability. Cultivating a good community is difficult, requiring sacrifice, compromise, hard work, difficult choices, and depends upon the goodwill of all members. Rick tried to become a farmer, but Carol saw the future clearly telling him, “you can be a farmer, you can’t just be a farmer”. A peaceful happy ending was not to be.

The community of Woodbury, led by a despicably evil man referred to as the governor, gave outward appearances of stability and health. But it was ruled through fear, intimidation, vindictiveness and evil. Leaders like the governor arise during desperate times when the weak seek someone who promises to save them and keep them safe. Leaders like the governor are far more savage, ruthless and dangerous than the flesh eating zombie hordes because they kill with malicious intent, fully knowledgeable of the consequences of their actions. Eventually good communities led by good people must stand up and fight bad communities led by evil men, no matter the consequences. Under dire circumstances and an uncertain future we will need to decide what kind of community we will be. What kind of people we will be. Will we fight for a better future for our children? Can we retain our humanity or will we become no better than the walking dead?   
 

Brutal: Hershel awaits his fate at the hands of The Governor on last night's The Walking Dead

“What fascinates me is not so much humanity’s engulfment in darkness, but what kind of culture we will construct from the rubble of this one.” ? Carolyn Baker – Collapsing Consciously: Transformative Truths for Turbulent Times

Who Are the Real Walking Dead?

The central question permeating the Walking Dead is whether the living can maintain their humanity amidst so much horror, brutality, death, and desolation. Can the living continue to show compassion, kindness, mercy and love in a world torn apart by disarray, violence, viciousness and despair?  Throughout the series those who haven’t “turned” still have the capacity to empathize, comfort one another, offer succor, and show mercy and kindness. But after enduring unending horrors, cruelty, death and sorrow, it appears some of the characters are “turning” into the very monsters pursuing them.

Every human being has their breaking point. The main characters must commit increasingly heinous acts in order to survive. The walkers have no choice. Their humanity was stripped from them by the virus. The living have a choice. The mental anguish pushes some (Lizzy) over the edge into insanity. Others (Michonne and Carl) are torn by guilt that they have become monsters. Carol justifies her ruthlessness as the only choice for survival – just like the walkers. The seismic shift occurs when Rick, seeing his son being sexually assaulted, goes full zombie and bites the jugular of his captor and relentlessly stabs his son’s attacker. Daryl kills one of the bad guys by crushing his skull with his boot. Many of the characters have made a choice to shed their humanity in order to protect their family and friends. As the series completes its fourth season we are left with a question. Are the zombies really the “walking dead” or are the living really the “walking dead”?   

    

Life is complicated and those seeking simplicity and consistency will be terribly disappointed. The future is not going to be bright for our empire of debt and delusions. Times that will try men’s souls are on the horizon. The choices we make as individuals and communities will matter. Every human being has the capacity for good or evil. We will be alone in deciding whether we gravitate toward the dark side of our character or whether we make a stand for all that is noble and decent. Retaining our humanity during the trials and tribulations that await us will be crucial to creating a community that is sustainable and a future worth living and fighting for. It is clear that Terminus is not a true sanctuary for all. It permeates evil. As all of the “good” people are herded into a single boxcar I couldn’t help but see the parallels of the Nazis herding the Jews into boxcars for their final destination. Passive submission to an evil authority never ends well.

As the door is slammed shut and the protagonists are reunited, Rick declares “they’re gonna feel pretty stupid when they find out.” Abraham then asks “find out what?” Rick’s “they’re screwing with the wrong people” response confirms his transformation from an ambivalent reluctant leader into a powerful figure who will do anything necessary to protect his family, friends and community. This Fourth Turning has yet to reach its bloody, violent, chaotic zenith. The popularity of shows like the Walking Dead is a sign of the darkening mood change in this country. With our fragile fraudulent finance driven eco-system teetering on the edge, the threat of collapse is ever present. Within one week of a financial system collapse we would enter a Walking Dead like scenario. Each American who hasn’t already been infected with the zombie virus needs to prepare now and decide what kind of person they will become as the collapse engulfs our society. We all exit this world as we entered it – alone. But we have the wherewithal to positively impact the rebuilding of our culture from the rubble of this one. Are you ready to meet the deadly trials ahead? The choices we make over the next decade will determine if this is the end of the line for our civilization or a new beginning..       

“We live together, we act on, and react to, one another; but always and in all circumstances we are by ourselves. The martyrs go hand in hand into the arena; they are crucified alone. By its very nature every embodied spirit is doomed to suffer and enjoy in solitude. Sensations, feelings, insights, fancies—all these are private and, except through symbols and at second hand, incommunicable. We can pool information about experiences, but never the experiences themselves. From family to nation, every human group is a society of island universes.” ? Aldous Huxley – Doors of Perception




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Dark-Pool Trading Danger

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What is there in this world that is transparent? Is there anything left? You just need to take a look around you. The growing number of corruption cases, the people that embezzle, fraudulently take, borrow, beg and steal at whim. These days it’s blatantly happening in front of your very eyes and yet we cannot see it, we do nothing except accept complacently, sheepled into believing that it can’t be changed.

We all know the stock market is rigged beyond our wildest dreams. We all hear that high-speed trading is doing the small-fry investors out of their hard-earned cash. But it’s now black-pool trading that is catching the stock markets in a whirl of foam to hide what’s going on in the darkest recesses of the financial markets. Everything has a dark side, a hidden entrance to the place where the few that are in-the-know are allowed to go; where they can benefit fully from something you can’t see. The darkest side of the stock market is that place where dark pools of liquidity allow financiers to trade high volumes of liquidity without the public actually knowing. Anonymous, unknown public-hidden trades by financial institutions; agreeing directly on the price and the volume to be traded, without making it public means that the public is at a disadvantage.

High-frequency trading is apparently only the tip of the iceberg today as growing volumes of shares are traded in dark pools. Approximately 40% of all US stock that is being traded now takes place outside of the stock market, ‘off exchange’. In 2008, that figure stood at 16%. In Europe things are not quite as bad, but there was an increase of 45% in just six months in the second part of 2013. In total there is an average sum of about 7-10% across the EU. In the US, there were some $21.4 trillion being traded in 2012 and that is certainly being affected by dark pools and hidden trading.

There are 45 dark pools competing with 13 public exchanges. There are some 200 internalizers (brokers that internalize trades, thus not providing data to the market). Dark pools only report data about volume and sales after the trade has actually gone through, while public exchanges do it in real-time adjusting the price according to the volume of sales and purchases. Canada and Australia have tried to curb the volume of dark-pool trades by making sure that there is a limit. The US is still thinking it over.

The US Securities and Exchange Commission stated in 2009 that they were going to get to grips with the problem of dark pools with the objective that “investors get a clearer view of stock prices and liquidity”. The information about volumes and prices was said to be needed to be made public. We are still waiting for theSEC to act. The SEC was supposed to require brokers to offer the public the best available price for stock that was to be bought or sold before dark-pool trading could occur. We are still waiting for that to happen. Patience is a virtue apparently. But, this is beyond the bounds of reason, isn’t it?

Of course, seeing who you are dallying with when the lights go out is much better than waking up in the morning with a huge surprise. Dark pools are a heated debate, but they certainly lead to a greater lack of transparency, endangering financial stability. Some might say that the markets have enough to cope with, but I can’t see the difficulty that they are going through (thanks to Quantitative Easing and easy money being thrown at them left, right and center).

When you have to look around you and everything that can be seen is just opaque, hiding the truth and bending the rules or using them to your advantage, then there is not a lot left to do except either go off and live as a hermit somewhere or join them all in the dark pools. Jump right in. Our society has turned into a seedy bottomless pit of dark opacity. We have no transparency. The word is misunderstood, unused, referring to a bygone era that wasn’t true even then perhaps. Where have all the honest people gone in this world? Why do we allow it all to continue to the detriment of the majority, for the benefit of the few?

Originally posted: Dark-Pool Trading Danger

 




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This Time Better Be Different

Today’s screengrab du jour comes by way of Bloomberg TV, reminding us that this time better be different, or else (even though as we pointed out the market’s forward PE multiple is now identical to where it was at the last bubble peak). And keep in mind, this is after the not so great momo crash of 2014.

And now, cue the hypno-toad: “healthy correction… healthy correction… healthy correction”




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Stocks Turn Red For The Year While Nasdaq Smashed Most Since October 2011

Early hope faded into middle-of-the-day-despair which was rescued (briefly) on a sea of JPY carry (which dragged the S&P all the way to VWAP) then crashed and burned on the shores of dismal reality into the close. USDJPY was in charge and 103 was the magic number that kept the S&P 500 from breaking its 50DMA (for now). The Nasdaq and Russell were ugly as Biotechs' early ripfest gave way. This is the biggest 2-day swing lower in the Nasdaq since Oct2011. Treasuries rallied modestly on the day (-2bps) as the USD weakened 0.25% led by EUR strength. Copper rallied from an overnight dump low but gold (~$1300), silver (~$20), and oil (~$100) all clustered around -0.5%. VIX tested up to 16 intraday but was rammed lower as the 330 ramp too early to hold and merely enabled VWAP sellers out… and we closed near the lows…

As we reminded everyone…

USDJPY and stocks glued at the hip…

 

VIX was also banged at around 230ET but lost contact…

 

The ramp efforts made the S&P 500 rise to VWAP and that was that …

 

And rescued it from the 50DMA (green)…

 

The S&P 500 oscillated around unchanged for the year with the Dow, Nasdaq and Russell all notably red…

 

Utilities are up around 9% YTD as all the broad QE/growth sectors pulled back to unch…

 

The Nasdaq has plunged over 5% from Friday's highs – its biggest 2-day swing since oct 2011

 

Biotechs dumped, pumped, dumped and VWAP bounced as the 200DMA ($132 on Bioecth ETF) was crucial…

 

Charts: Bloomberg




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UK Government Deposit Confiscation Powers Faces Backlash

Today’s AM fix was USD 1,299.00, EUR 946.93 and GBP 783.76 per ounce.                                                

Friday’s AM fix was USD 1,293.50, EUR 943.75 and GBP 780.02 per ounce.


Gold climbed $17.20 or 1.34% Friday to $1,303.50/oz. Silver rose $0.10 or 0.5% yesterday to $19.94/oz.   Gold and silver were both up for the week 0.84% and 0.76% respectively.

Gold added to gains on Monday following its biggest one-day jump in over three weeks on Friday, on investor concern after the poor jobs number Friday.


Gold in U.S. Dollars, 1 Year – (Thomson Reuters)


Gold surged 1.3% on Friday – its biggest percentage increase since March 12. Gold is not far from a one-week high of $1,306.50 hit in the previous session.


Iraq’s central bank said on Friday its gold reserves had reached 90 tonnes, after buying 60 tonnes over the past two months to support the Iraqi dinar.

Federal Reserve Chair Janet Yellen said last week that slack in labor markets showed accommodative policies will still be needed for some time which is also bullish for gold.



Gold in U.S. Dollars, 5 Year – (Thomson Reuters)


Silver for immediate delivery declined 0.7% to $19.83 an ounce in London. Platinum fell 0.8% to $1,438.50 an ounce. Palladium lost 0.6% to $786 an ounce. Palladium prices climbed above $800 on March 24, the highest since August 2011, due to concerns about Russian supply. Platinum and palladium had both gained in the previous six sessions.

Gold is 8.2% higher this year, rallying from its 28% fall in 2013 – its biggest annual decline since 1981.


UK Government Powers To Confiscate Deposits Faces Backlash
Last week, we covered the very under reported but important story about how the UK government now has powers to raid banks accounts and confiscate deposits.

On Saturday the
Financial Times covered the story and the fact that the hitherto unnoticed measures are now facing scrutiny and a backlash.

“George Osborne is facing a backlash over plans to give HM Revenue & Customs unprecedented powers to dip into taxpayers’ bank accounts to seize unpaid tax debts,” according to the FT.

MPs, banks and charities want robust safeguards over powers that will allow the Revenue to order banks to pay outstanding debts from taxpayers’ bank accounts, following fears that the measure could be used inappropriately and cause hardship.

Andrew Tyrie, who chairs the Treasury select committee, said the MPs intended to hold further hearings into the new powers, which he said could set a worrying precedent.

Many banks want judicial oversight to apply to the new powers, as they worry about being caught between irate customers and the tax authorities.


“HMRC doesn’t have the best record of getting things right,” a banking source told the FT.

The idea was previously floated in a 2007 consultation, but it was dropped after widespread criticism over the adequacy of the safeguards, the possibility of creating hardship and the risk of HMRC error.

John Thurso, a Liberal Democrat MP on the Treasury select committee, criticised Mr Osborne for slipping the measure out in the Budget in just two paragraphs. “Any advance of powers by the state needs to be resisted unless they can justify it,” he said.

Patrick Stevens, director of tax policy at the Chartered Institute of Taxation, was sceptical that the legislation could be drafted in a way that would apply only to the wealthy. He said: “There are lots of very unsophisticated people out there with more than £5,000 in a bank account. We are truly worried about the vulnerable.”

Robin Williamson, of the Low Incomes Tax Reform Group charity, said he was very concerned about the risk of hardship: “As always the financially savvy ones will find ways around this. The ones that will be caught are the vulnerable.”

“The victims will be people with just enough money to go after but not enough to hire lawyers to fend it off”- said Liberal Democrat MP, John Thurso.


The surreptitious and somewhat underhanded manner in which the legislation was slipped in should give pause for concern. In that way, the measures are similar to the developing
bail-in legislation in the UK which is gradually coming into place without any public debate or informed discussion.

Preparations are being put in place by the international monetary and financial authorities, including the Bank of England for bail-ins. The majority of the public are unaware of these developments, the risks and the ramifications.

Download The Essential Bail-In Guide: Protecting your Savings In The Coming Bail-In Era (11 pages)




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