Thursday, December 8, 2011

Morning Update/ Market Thread 12/8 - Lawless Edition…

Good Morning,

Futures are down prior to the open, the dollar is higher, bonds are flat, oil is still above $100, gold & silver are flat, and food commodities are lower.

Yet another late day rumor spiked the markets yesterday afternoon – I think the game here is very clear, the criminals who create money from nothing, own the exchanges, and fuel the HFT machines are the ones who float these rumors. One hand on the HFT switch, the other pressing the “send” button to initiate the bullshit du jour. The markets are completely not real, they are 100% fake. I’ve been warning of that for quite some time, but just in case you need confirmation then you must have missed the Ann Barnhardt interview I posted yesterday, therefore I’m posting it again today for those who may have missed it: Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse

Of course Jon Corzine is a crook, he is a former head of Goldman Sachs, the former Governor of New Jersey, he is said to have “hired” Bill Clinton’s lobbying firm to the tune of $50,000 per month, and is one of the largest contributors to Obama. Thus, despite being a criminal of historic proportions he still walks a free man. That is lawlessness that highlights the different set of laws that apply to the 1%.

Note that this lawlessness is money centric – it is not just political! I can say that because just take a look at the 14 year sentence Blagojovich received – his crimes pale in comparison to Corzine’s, but he was not a money connected insider and thus the other rule of law applied to him (and Martha Stewart, and you, and me).

Europe is a complete mess, of course. This morning the ECB lowered rates by .25% to a flat 1%. Austerity measures cause a slowdown in the measurement of economic activity and thus interest rates are lowered in response. Note that the Europeans couldn’t even stand 1.5% interest rates! This is because they are saturated with debt! The REAL economic activity can only support so much debt at 7%, a little bit more at 6%, at 5%, etc., until finally interest rates are zero like they are here. Once you run out of the lowering interest rates game, then “stimulus” must take another form, that form is commonly referred to as printing money, which has euphemisms such as “Quantitative Easing,” the “Twist,” the “European Stabilization Fund,” or some other impressive sounding bullshit designed to mask their real activity.

German politicians are stating pretty clearly that the solution to the crisis is POLITICAL. Germany’s Finance Minister, Wolfgang Schauble, has repeated this numerous times and has even stated that a crisis is required to pull off a truly unified Europe. This is also pure bologna, again it is all about power and control and the truth is that Europe will not accept a political system in which Germany is in power (nor should they).

So, the impossible math of debt continues, other events continue and will worsen until the debt is cleared which is coming one way or the other (money printing cannot clear debt under the current system with the current crooks in charge).

Meanwhile more bad data in the form of Weekly Jobless Claims which we are supposed to believe fell to 381,000. Note the double talk from Econocomplicit, “no unusual factors,” but “the holidays are always a tough time to get a clear read…” Uh-huh, all you really need to know is that “the unadjusted week-to-week increase is the largest of the year.” In fact the unadjusted data rose by 151,000, so I would definitely take this number with a very large grain or hundred thousand grains (plus or minus) of salt:
Initial jobless claims fell a sizable 23,000 in the December 3 week to 381,000, their lowest level since February (prior week revised 2,000 higher to 404,000). There are no unusual factors in the data though the unadjusted week-to-week increase for the post-Thanksgiving week is the largest of the year, a factor that seasonal adjustments smooth and one that clouds the results a bit. A clearer positive is the four-week average of 393,250, down 3,000 in the week and at its lowest level since April.

Thanksgiving effects are also at play for continuing claims, down a very sizable 174,000 to 3.583 million in data for the November 26 week. The four-week average of 3.667 million, down 21,000, is the lowest of the recovery as is the unemployment rate for insured workers which is at 2.8 percent for a one tenth decline.

Today's report is very welcome but the results will have to be confirmed by improvement in subsequent weeks. The holidays are always a tough time to get a clear read on weekly claims data.

Remember, real job growth doesn’t occur until this number (not manipulated) is below 350k.

The printing of debt backed money can at best only delay the inevitable, not cure it. Thus you will hear no solutions from the Euronuts today, you will only hear the clink of the can going down the road as those in power struggle to maintain their control. Not to worry, eventually a landslide will bring them down…

I, Nathan Martin, no longer consent to the lies.