This gets more complex by the day. The swamp is now overflowing.
EXCLUSIVE: White House Fingers Mitch McConnell As Media Leak; Believes GOP Leader Divulged Sensitive Intelligence on Trump
August 24, 2017
The White House is accusing Senate Majority Leader Mitch McConnell of waging a clandestine smear campaign against President Donald Trump, leaking sensitive internal communications shared with the President to the New York Times and possibly other media, according to administration officials.
“The President knows exactly what the senator (McConnell) has done,” a White House official said. “And the President will address this in his own way. Privately.”
The honeymoon — if you can call it that — appears to be officially over for the GOP leaders. And that might be a very bad thing for McConnell whose popularity is sliding in his home state of Kentucky.
According to White House insiders, President Trump was furious when the New York Times published a long hit piece on the president’s growing feud with McConnell. The piece included detailed communications between Trump and McConnell that, according to White House sources, were almost verbatim. Moreover, it is believe the article was timed to try to steal some of Trump’s thunder from his Monday night address to the nation on military plans in Afghanistan, officials said.
At a time when Trump should have been celebrating his speech from Tuesday night in Arizona — which likewise was well received by supporters — the mood on Wednesday was tamped down by the realization that the GOP leader had ratted out and betrayed the GOP President of the United States to the house organ publication of the Democratic party: The New York Times.
They are only “short”: dollars which can easily be printed. The question is this; what will these dollars be worth once they are printed? …and markets tend to discount the future.
They’re Using Bernie Madoff Math to Hide a Crisis
August 23, 2017
Politicians are always generous with other people’s money… until it runs out.
Near the peak of the late-’90s tech bubble, California’s legislature passed the largest pension increase in its history.
Today, with as much as $750 billion in unfunded public pension debt, California has one of the worst pension situations in the country. But it’s far from alone.
Illinois has a staggering $250 billion in unfunded pension obligations. State pension plans in Connecticut, Pennsylvania, New Jersey, and many other states are taking on water, too.
Unfunded public pension liabilities in the US have surpassed $5 trillion.
Taxpayers Are Stuck With the Bill
There used to be a simple formula for a secure retirement. American workers would work for a big company for decades. Then, at a certain age, they were eligible for a monthly pension check… for life.
This may be the case GG but I have just one question; when the markets crash …who will still be solvent and able to pay out on this “crash insurance”?
The Cost Of Market Crash Insurance Just Hit A Record High
August 24, 2017
With the VIX surging, and then quickly getting pummeled on two occasions in the past three weeks, dizzy traders could be forgiven to assume that any latent “risk off” threat, whether from North Korea or the US political front, has been taken off the table. However, a deeper look inside the vol surface reveals something very different: with increasingly more analysts and traders warning that volatility is set for a sharp return this fall, equities have already been adjusting to the increased probability of a “tail event.” However, instead of buying VIX futures, call or ETPs, they have been doing so by bidding up the price of OTM equity put options, or equivalently, by steepening the S&P 500 put skew and.
As a reminder, a put skew shows how much more expensive it is to buy deep OTM puts vs puts that are in the money or in other words, a levered bet on (or hedge against) a market crash.
And as the following chart from Bank of America shows, the S&P put skew is now at the highest level on record, making the relative price of tail hedges the highest in 13 years as traders are quietly bracing for a sharp market crash.
True that was the reason there was the emergency payment to rescue AIG because AIG has issued so many credit default swaps because they never believed the market would crash. And if they couldn’t make full on their promises the card house would have collapsed.This is the example of counter-party risk. The difference this time is that if and when the FED/treasury will come to the “rescue” the currency’s pp purchasing power or the US dollar will fall dramatically. The devaluation of the currency in the end is the ultimate counter party risk because when you can’t buy anything anymore with your currency it means that the base the anchor of the financial system on which everything is based has lost its value and credibility hence why at that time gold and silver will go haywire. And remember silver is cosmetically cheap and will outpace the rise in the gold price with many factors. Next to that silver has not been confiscated as far as I know.
The next crisis is all about counter party risk!
JB, you’re killing me! Where is the one of the statue peeing on someone?
In the end, this is only paper. It will all be worth zero when the “show me the money” moment comes!
God help us, please!
U.S. Banks Precious Metals Derivative Exposure Surged In The Beginning Of 2017
August 23, 2017
According to the most recent report on the U.S. Financial Institutions Derivatives trading activity, the U.S. banks held a record amount of precious metals contracts in the first quarter of 2017. Not only did the U.S. banks report a record amount of precious metals contracts, but they also held an unprecedented quantity in notional value of commodity and equity derivative contracts.
There just seems to be a lot of paper floating around in our highly inflated stock, bond, and Forex markets. And… there needs to be. Without an ever increasing amount of leverage via their derivative bets and hedging, these markets would be in serious trouble. Furthermore, the practice of using contracts to hedge bets upon on other derivative bets has put the financial market in a highly fragile state.
The Office of the Comptroller of the Currency (OCC) put out its First Quarter 2017 Quarterly Report on Bank Trading and Derivative Activities. In that report, they published the following chart on the U.S. Banks’ notional value in precious metals contracts: