Global Credit Markets Have Proclaimed An End To The Recovery

Submitted by Jeffrey Snider  –  Alhambra Investment Partners

The amount of credit market fireworks this week is only surpassed by those of October 15. Everywhere you look, credit markets are not just growing bearish but, as I said earlier in the week, bearish in comparison with past crisis periods. The past few days have surpassed even that observation, making credit now a fast-moving indicator of still nothing good.

For most people that makes sense of Europe. The currency bloc that has been strangled by the common euro is living up to that sense of monetary reality. All that talk of recovery only eight months ago has been washed away in a tide of remarkable fear. What was perhaps only unease or mild nervousness as late as September has turned in the past few weeks to what can only be described as growing desperation.

ABOOK Dec 2014 Big Credit Moves Germany Recent

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On the Brink of War and Economic Collapse

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

On occasion a reader will ask if I can give readers some good news. The answer is: not unless I lie to you like “your” government and the mainstream media do. If you want faked “good news,” you need to retreat into The Matrix. In exchange for less stress and worry, you will be led unknowingly into financial ruin and nuclear armageddon.

If you want to be forewarned, and possibly prepared, for what “your” government is bringing you, and have some small chance of redirecting the course of events, read and support this site. It is your site. I already know these things. I write for you.

The neoconservatives, a small group of warmongers strongly allied with the military/industrial complex and Israel, gave us Granada and the Contras affair in Nicaragua. President Reagan fired them, and they were prosecuted, but subsequently pardoned by Reagan’s successor, George H.W. Bush.

Ensconced in think tanks and protected by Israeli and military/security complex money, the neoconservatives reemerged in the Clinton administration and engineered the breakup of Yugoslavia, the war against Serbia, and the expansion of NATO to Russia’s borders. Continue reading

Thank You for Your Money and Might, Now Go be Good Little Children

Submitted by Thad Beversdorf  –  The First Rebuttal Blog

I recently read Putin’s latest speech to the Federal Assembly (h/t to PCR for the link).  While I was reading it I couldn’t help but be impressed with the man’s ability to be reasonable.  This is a man who cannot take a shit without inducing more sanctions from the West.  Yet Putin remains very controlled and very patient.  Now I’m not sure we can attribute it totally to his character as some of his control must be due to the fact that Putin is very much a chess player.  He recognizes he is not in a good spot to be an aggressor.  His economy is being destroyed by the West, and America, although an arrogant bully, has the means to pack a pretty damn powerful punch.  That’s what $600 billion annually buys you.

But I also believe Putin and Russia have learned from their history.  Putin seems to have an ability to understand human behaviour and so can read and prepare for actions by the West before they know what they are going to do.  He also understands that there is an incredible amount of dead weight loss in an arms race.  A disproportionate amount of the economy gets allocated to a very small but very elite group of men, namely, the military industrial complex.  And such a strategy wiped out that country once before.  If even half of what Putin claims are his intentions and wishes well he is still infinitely more ideal as a global leader than what our Western heads of state are presenting.  In the following excerpt from his address to the Federal Assembly you can see he understands the West’s intentions very well. Continue reading

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

The Federal Reserve’s Language Lessons (Reuters)
After Years Of Doubts, Americans Turn More Bullish On Economy (Reuters)
Oil Seen Dropping to $55 ($45?) Next Week as Price Rout Deepens (Bloomberg)
US Stocks Tumble to Cap Dow’s Worst Week Since 2011 (Bloomberg)
Oil Rot Spreading in Credit (Bloomberg)
We Have Just Escaped The Earth’s Gravity And Are Now In Space Orbit (Zero Hedge)
U.S. Oil Rigs Drop Most in Two Years, Baker Hughes Says (Bloomberg)
Don’t Vote ‘Wrong’ Way, EU’s Juncker Urges Greeks (Reuters)
Albert Edwards: China Deflation Risks Sparking A Eurozone Break-Up (CNBC)
Would Global Deflation Really Be That Bad? (CNBC)
Falling Oil Threatens Canada’s Bulletproof Banking System (MarketWatch)
How Elizabeth Warren Led The Great Swaps Rebellion of 2014 (Bloomberg)
$303 Trillion In Derivatives US Taxpayers Are Now On The Hook For (Zero Hedge)
Venezuela’s Got $21 Billion. And Owes $21 Billion (Bloomberg)
Japan’s Lemmings March Toward The Cliff Chanting “Abenomics” (David Stockman)
Putin 2000 – 2014, Midterm Interim Economic Results (Awara)
Only ‘Minimal’ Risk Of Default: Ukrainian Official (CNBC)
Ukraine’s Chocolate King President Not Sweet On Keeping Promise (Reuters)
Australia’s Once-Vibrant Auto Industry Crashes in Slow Motion (NY Times)
Did A European Spacecraft Detect Dark Matter? (Christian Science Monitor)
The Chinese Mystery Of Vanishing Foreign Brides (FT)

Continue reading: Debt Rattle December 13 2014 – The Automatic Earth