Global Market Watch for May 19th, 2014
Debt Crisis Poking its Head Up Again in Europe
We have seen a 4 month rally in euro-region debt with yields on Italian and Spanish bonds seeing their biggest one-day jump in almost a year last week. The sell-off in European sovereign debt began in Greece and has spread following the same lines of contagion that emerged 2010-2011. Bids have simply evaporated and prices have tumbled. The short-term traders were counting on the ECM supporting bonds just as the Japanese relied upon their central bank to support the Nikkei back when. The European derivatives have seen a mad rush to protect against losses.
Despite the fact that borrowing costs fell to near record lows of the typical bullishness in government that appears endless, the sudden price swing shows these markets are by no means stable. When fear strikes, it is going to be a blood-bath. The assumption that the European Central Bank would support the market is seriously unfounded. There is only one exit door here and this is perhaps the greatest risk we have seen in 200 years. Liquidity is becoming a very fleeting thing and that makes investing in European sovereign debt extremely risky.
Boehner’s War Against the Tea Party
What we are watching is the demolition derby of the Republican Party. John Boehner is about as corrupt a politician as you can imagine. He makes countless donations because it is the Speaker of the House who lets anything move to the floor to be voted on. If you do not pay Boehner, you will not get even a vote.
Boehner is out for blood. He hates the Tea Party and has waged civil war within the Republican Party to try to get rid of everyone who does not vote as he demands. He stands against all democratic principles and it is just raw politics.
Boehner’s aim is to put the Tea Party’s most zealous members on notice – he wants them defeated at all costs. This is Boehner dictating policy within the Republican Party for he intends to take the Party back to his brand of politics. He is against ANY REFORM and is as bad as the Democrats. In his hand, he is destroying the Republican Party and that seems to be directly on schedule.
We have been warning for the last 20 years that by the Presidential election of 2016, there will be a reasonable chance that we could end up with a new third-party president. Keep in mind that this is one year after the turn in the ECM 2015.75. One year is more than enough to hurt a lot of people and we may end up with a major uprising politically where people move to an economic conservative alignment. Boehner’s civil war is therefore precisely on target with our models. This is the man that ensures we MUST crash in burn for he could care less about the well-being of the nation or the world, this is about power and money for those in Washington. No long-term plans. They are just stealing whatever they can before they leave the room.
CISCO Writes to Obama – Curtail NSA Now
The Obama Administration’s hunt for money under the pretense of terrorism is really destroying everything. The infiltration of every network is the same as Orwell’s 1984. This thirst for money that is destroying world trade is also undermining technology everywhere. The claim that China is spying on America is no excuse for tracking absolutely everything in site domestically and ignoring territorial jurisdiction to demand any company dealing with an American overseas must report to the USA what that American is doing and what he owns of their assets will be confiscated in the USA. This wholesale denial of territorial jurisdiction is outrageous and violates international law. If every country acted like the Obama Administration, we would have international anarchy.
The Department of Justice charging 5 individuals in China’s People’s Liberation Army in connection with stealing trade secrets from some of the largest American companies, including Westinghouse, United States Steel and Alcoa is up there with the pot calling the kettle black. What is China arrests Americans for spying on them. How about Germany arrests NSA official for illegally tapping Merkel’s personal cell phone? What goes around – comes around. This is trying to justify the NSA. It will not work.
Cisco Systems Inc’s chief executive officer has now written a letter to Obama directly urging him to curtail government surveillance. Evidence has now emerged demonstrating that the NSA (National Security Agency) has intercepted Cisco equipment to alter it, a company spokesman said on Sunday. This is outrageous and is criminal activity on the part of government. This will not end nicely.
We need an international summit on spying. Everyone has to play nicely before we no long play at all.
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