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Chart Of The "Keynesian Normal": America's Tragic Divergence submitted by mephisto 11 hours ago (via zerohedge.com) There is a saying that debt can't buy growth. When it comes to the US, that saying is absolutely correct: only lots and lots of debt can "buy growth."As the chart below shows, since officially leaving the gold standard in 1971, annual GDP growth has outpaced the growth of federal debt on just 11 occasions, and of these half were during the dot com boom of the late 1990s. Obviously this chart would

Bass On Japan's Turbo QE: "It Won't Be Enough" submitted by mephisto 11 hours ago (via zerohedge.com) If JGB investors 'believe' as Richard Koo earlier noted, in the BoJ's new actions and Abenomics (to double the monetary base and generate inflation), then, Kyle Bass explains, a rational investor is likely to sell a portion if not all of them. The BoJ only has JPY10 trillion cushion (after the JPY60 trillion deficit) to soak up this 'rational investor paradox' selling and this is dwarfed by the ho

A Culture Of Fear And Intimidation... submitted by mephisto 14 hours ago (via zerohedge.com) Submitted by Simon Black of Sovereign Man blog,Last week when I arrived to Bangladesh, the immigration officials there were positively ecstatic to see a foreign tourist entering the country.I’ve also been to places in Africa and the South Pacific where you’re greeted upon arrival by dancing tribespeople singing songs of welcome.It’s not quite the same in the Land of the Free. In fact, before

Quote Of The Day submitted by mephisto 14 hours ago (via zerohedge.com) The only sane central banker in the world, the Bundesbank's Jens Weidmann, take the prize for today's quote of the day with the following:ECB'S WEIDMANN WISHES JAPAN `GOOD LUCK IN THEIR EXPERIMENTS'So do we. They will need it.And some other pearls from his speech:WEIDMANN: JAPAN SHOWS MONETARY POLICY CAN BE PUSHED INTO DIFFICULT SPOTWEIDMANN: COUNTRIES MUST RESPECT THE RULES OF MONETARY UNIONWEIDM

CME Hikes Nikkei-Associated Margins By 33% submitted by mephisto 14 hours ago (via zerohedge.com) Two years ago it was only gold and silver that saw the CME's wrath on a daily, and sometimes hourly basis. Back then, however, it was due to soaring prices. Today, it is due to the bone-crushing price collapse in the Nikkei which has just seen the CME hike most Nikkei-related outright futures margins by 33%. So not only will those who resume trading Nikkei-related products in the futures market se

"Dead Cat Bounce" Or "Pause That Refreshes" submitted by mephisto 14 hours ago (via zerohedge.com) While the off-the-lows mentality of today's market performance was heralded by most as a signal that the BTFD'rs are back, we gently remind them that the Nikkei (futures) did not bounce at all... In fact S&P futures bounced to a rather eerily perfect 38.2% Fibonacci retracement of the overnight plunge and then faded into the close. All the major indices managed to get back to unchanged on the

Full Text And Wordcloud Of Obama's "Don't Drone Me, Bro" Speech submitted by mephisto 16 hours ago (via zerohedge.com) One can read "The Lethal Presidency of Barack Obama" to get a true sense of Obama's "the best defense is a relentless drone everyone offense, ignore collateral damage and take out a few Americans in the process" policy. Or one can stare at rising stawks and enjoy their Obamaphones. Obe can't have both.Word cloud:And full speech (via WaPo):President Obama’s May 23 speech on national security Pres

Richard Koo Warns Of "Beginning Of The End" For Japanese Economy submitted by mephisto 16 hours ago (via zerohedge.com) The surge in Japanese long-term interest rates is likely causing some lost sleep among bond market participants and policymakers (despite their ignorance of the moves in the BoJ minutes) as Nomura's Richard Koo notes, if this trend continues (now added to by the collapse in stock prices) it could well mark the “beginning of the end” for the Japanese economy.Although the stock market has (until

The Winners And Losers In Today's NEE And AEP Flash Crashes submitted by mephisto 16 hours ago (via zerohedge.com) (Milli)seconds after today's market open, utilities NextEra Energy (NEE) and American Electric Power (AEP) did what most stocks in the New Normal do when there is an unexpected event (like a 4 sigma plunge in the Nikkei): they flash crashed. What is different about AEP and NEE is that unlike most other daily stocks that implode in a matter of milliseconds, the collective market cap of the two comp

UBS On Japan - Are You 'Abe'liever? submitted by mephisto 16 hours ago (via zerohedge.com) Authored by Duncan Wooldridge via UBS,We totally get why many are excited by the recent cyclical improvement in the Japanese economy. However, just because industrial production is turning up on the back of exports and 1Q GDP grew more than expected doesn’t mean Abeconomics is working. Our colleague, Paul Donovan, correctly pointed out these improvements occurred before the Bank of Japan aggress