- Santoli: Here's what investors can reasonably expect from the bull from here August 29, 2016CNBC senior markets commentator Mike Santoli looks at the history of risk-adjusted returns to estimate what investors should reasonably expect from this bull market from here.
- Nikkei up 2.1%, boosted by a weaker yen, but other Asia markets slip August 29, 2016Asian markets opened mostly on the back foot on Monday, but Japanese shares climbed in early trade, boosted by a relatively weaker yen.
- Why Dennis Gartman thinks these two assets 'don't make any sense' right now August 28, 2016Call it the curious case of gold and bonds.
- Despite 'truly shocking' box-office losses, not all doom and gloom: Analyst August 28, 2016A changing landscape and studio problems may be hurting the summer box office, BoxOffice.com's Daniel Loria says.
- Spain's governing party wins centrist support, may end political impasse August 28, 2016Spain's governing party won key backing from centrists, a move that could end a parliamentary stalemate, The FT reports.
- 11 tech gadgets that were the next big thing — before failing miserably August 28, 2016Here are 11 epic gadget fails from tech giants, including Apple, Google and Microsoft.
- How the U.S. government is using $20 million to cut the cheese (literally) August 28, 2016There's an oversupply of cheese in the U.S., and the Department of Agriculture is riding to the rescue.
- Germany says free-trade talks between US, EU have 'de facto failed' August 28, 2016Free trade talks between the European Union and the U.S have failed, according to Germany's economy minister.
- Star QB Colin Kaepernick sacked by US anthem controversy, will 'continue to sit' August 28, 2016The 49ers' signal caller got buried in an avalanche of criticism, and some praise, for his remarks on social justice.
- How to know when downsizing your home in retirement makes sense August 28, 2016Buying a smaller residence can be a great way to lower monthly costs, but it may not be the best option for everyone.
- Trump gets back to tough talk on immigration, but mum on deportation details August 28, 2016Donald Trump added points to his vague plan for undocumented immigrants in America, NBC News reports.
- Here's what to consider if you're planning to retire abroad August 28, 2016The end of your work life could be the start of an entirely new life, abroad.
- Kuroda vows 'no hesitation' on bold policy moves, but acknowledges risks August 28, 2016The Bank of Japan's governor acknowledge the struggle to "anchor" inflation expectation at the central bank's 2 percent target.
- Venezuela, Iran hold talks on oil price stability August 28, 2016Venezuela and Iran are continuing to seek consensus on ways to stabilize oil markets, Venezuelan President Nicolas Maduro says.
- What lies beneath? Analyst sees 'under the surface' signals giving market ballast August 27, 2016Though the market has been trading in an ultra-tight range, a chartist says several underlying factors point to gains ahead.
- What if school wasn't out for the summer? Experts debate yearlong education August 27, 2016It's back-to-school season for much of the country, but for some students, school is never out. Is that a good or bad thing?
- US workers facing 'alarming vacation deficit': Here's where to go to fix it August 27, 2016Haven't taken a vacation yet, even though summer's just about over? You're not alone.
- Trump leaps into new political firestorm over Dwyane Wade kin's shooting August 27, 2016The GOP contender tweeted a remark suggesting the shooting of the star's cousin was a reason to support him.
- Carl Icahn shopped a portion of his Herbalife stake, but in a twist ended up buying more August 27, 2016Sources tell CNBC that the billionaire investor may have wanted to unload his Herbalife stake just before he bought a new lot.
- State Dept to release Clinton's meeting calendars...after November's election August 27, 2016The State Department will release data on Hillary Clinton's meetings, but after November's election, The AP reports
- Santoli: Here's what investors can reasonably expect from the bull from here August 29, 2016
- Calais chief wants new migrant border deal with UK August 29, 2016Migrants in Calais seeking asylum in the UK should be able to lodge their claim in France and not have to wait until they reach British soil, the region's president says.
- Mexican superstar Juan Gabriel dies at 66 of heart attack August 29, 2016Legendary Mexican singer Juan Gabriel dies aged 66 of a heart attack in California, just days after performing at the prestigious Los Angeles Forum.
- Yemen suicide attack 'kills dozens' in Aden August 29, 2016A suicide bomb attack on a military facility in the southern Yemen city of Aden kills at least 40 people, officials say.
- Fiji rewards coach with title after Rio gold August 29, 2016English coach Ben Ryan is given three acres of land and a chief's name after leading Fiji's sevens team to Olympic gold in Rio.
- Bookings down for terror-hit tourist countries August 29, 2016Destinations struggling to attract visitors following terrorist attacks will continue to see a decline in international arrivals, flight reservation data suggests.
- Brussels explosion: Blast hits crime laboratory August 29, 2016An explosion hits a Brussels crime laboratory, causing "significant" damage but no casualties, Belgian media report.
- Beyonce dominates MTV awards August 29, 2016Beyonce was the big winner at last night's MTV VMAs in New York.
- Stunning success August 29, 2016The world's first cancer vaccine has halved the number of new cervical cancers ten years after it was first administered in Australia.
- Patrick Reed wins The Barclays to earn place on USA Ryder Cup team August 29, 2016Patrick Reed wins his first tournament of the season at The Barclays to to earn place on the USA Ryder Cup team.
- Los Angeles airport evacuation sparked by 'loud noises' August 29, 2016Unconfirmed reports of shots, later described by police as just "loud noises", spark evacuations at Los Angeles airport.
- Nasa ends year-long Mars simulation on Hawaii August 29, 2016A team of six people complete a Nasa-funded Mars simulation in Hawaii, after living in a dome in near isolation for a year.
- Definitive ceasefire takes effect in Colombia after 52 years August 29, 2016A ceasefire has come into effect in Colombia between the main leftist rebel group and the government, ending one of the world's longest insurgencies.
- Australian aid worker Kerry Wilson freed in Afghanistan August 29, 2016Aid worker Kerry Jane Wilson who was abducted earlier April in Afghanistan has now been freed, says Australia's foreign minister.
- Crew emerges from year-long Mars trial August 29, 2016A team of six people have emerged from a Mars simulation in Hawaii, where they lived in near isolation for a year.
- Female genital mutilation: Egypt to toughen penalties August 29, 2016Those who force genital mutilation on girls and women in Egypt face stiffer penalties under plans approved by the cabinet in Cairo.
- Ticket to ride August 29, 2016The Facebook group where passengers cast a humorous eye on the behaviour of tram conductors.
- Parkinson's protein test could lead to earlier diagnosis August 29, 2016A test that can detect the stickiness of a key protein molecule could help diagnose the early stages of Parkinson's disease, a study from the University of Edinburgh suggests.
- Man 'put acid' in Australian sex club lubricant August 28, 2016A 62-year-old man is arrested after allegedly filling a lubricant dispenser with hydrochloric acid at a gay club in Sydney.
- Kazakhstan's 'Game of Thrones' to launch August 28, 2016Kazakhstan is preparing to launch its own version of the popular TV series Game of Thrones.
- The man inside China's lonely 'bachelor village' August 28, 2016Xiong Jigen, 43, is one of many men inside China's remote "bachelor village", where bad roads and a skewed gender imbalance has made it difficult to find a wife.
- Calais chief wants new migrant border deal with UK August 29, 2016
Top Holders of U.S. Debt – The (CRUD) effect
By Brice Buckley (Editor-at-Large, Clarion Advisory) 1-29-11
The following, red, white & blue graph (oh, the irony) shows the top holders of U.S. Debt as of mid-4th quarter 2010. Per the graph, the aggregate amount of U.S. debt totals $2.6 Trillion with $1.129 Trillion(43.4%) held by the Fed. As the chart demonstrates, the Fed has surpassed Mainland China’s U.S. debt position by some $233 Billion. And as Zero Hedge points out, this shifts leverage away from China. Let’s examine this. Why would leverage be shifted away from China? This sounds rather odd but upon further examination, we see where Zero Hedge is going with this.
The tipping point in so much as the Fed is the largest holder of U.S. issued debt, was achieved through ‘QE 1, the purchasing of toxic mortgaged backed securities from retail banks (and later on billions in U.S. Treasuries) and QE2, the current plan underway to purchase $600 + Billion of maturing U.S. Treasuries from retail banks.
So how does the comparative holding of more debt, advantage the U.S. over China?
The proof is in the pudding or in this case the dollar and the feds ability to devalue its currency by increasing its own balance sheet holding of the very security held by China.
OK, in plain English, the Fed is essentially monetizing it’s own debt – in other words, purchasing debt with debt. Parenthetically, I am sure this is the point where the Fed would want me to say that it shouldn’t be considered a complete monetization of debt on account the Fed is supposedly using proceeds from mortgage backed securities it purchased through QE 1, in order to fund the purchase of QE 2 i.e. the $600 Billion in treasuries from retail banks. Damn . . . that was a long parenthetical statement. But it is an important one. This is how the Fed sleeps at night, thinking that they are using capitalized “profits” to fund the purchase of its own debt. To be fair, I would say this ostensibly makes sense however, I ain’t much into the ostensible as much as the practical . . . and well, the “ostensible” version smells like something is rotten in the State of Denmark, if I may borrow a paraphrased line from Hamlet.
So back to China . . . China is essentially holding a deteriorating asset class i.e. U.S. Treasuries due to the fact these outstanding treasuries are being purchased by the issuer (the Fed) through the creation of new debt. The Fed’s attempt in QE 1 to stabilize retail banks (although it was billed as a liquidity play, it wasn’t) and the Fed’s attempt in QE 2 (a true liquidity play) are two entirely different programs (most don’t realize this). Even though they are different programs bearing the same name, they both have the same net effect. And what is this net effect, you ask?
The answer is (are you ready?) currency devaluation.
We should call this net effect Credit Reduction Utilizing Devaluation or, C-R-U-D for short.
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- French shipbuilder to seek injunction to plug submarine data leakAllen ConeMELBOURNE, Aug. 28 (UPI) -- French shipbuilder plans to seek injunction to prevent further publication of information contained in 22,400 secret documents about submarines built for India.
- Native Americans protest over North Dakota oil pipelineAllen ConeFORT YATES, N.D., Aug. 28 (UPI) -- Native Americans from reservations across the United States joined Standing Rock Sioux Tribe's protest against 1,100-mile, $3.8 billion four-state oil pipeline.
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- Germany expecting 300,000 new migrants in 2016Yvette C. HammettBERLIN, Aug. 28 (UPI) -- Germany expects to receive as many as 300,000 migrants this year on top of the 1 million that arrived last year from the Middle East and Africa.
- Failed suicide bomber stopped in Indonesia Catholic churchYvette C. HammettJAKARTA, Aug. 28 (UPI) -- A 17-year-old suicide bomber failed in his attempt to blow up a Catholic Church in North Sumatra Sunday morning, leaving a priest with only minor injuries.
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- Two United Airlines pilots suspected of being drunk arrested at Glasgow airportYvette C. HammettGLASGOW, Scotland, Aug. 28 (UPI) -- Two United Airlines pilots suspected of boarding a plane inebriated, were arrested in the cockpit Saturday in Glasgow, Scotland.
- Islamic State militants released in Philippines in 'staged raid'Yvette C. HammettMARAWI, Philippines, Aug. 28 (UPI) -- In what is being called a "staged raid," eight militants linked to the Islamic State were freed from jail in the Philippines Saturday.
- Italy launches criminal investigation into buildings destroyed in earthquakeYvette C. HammettROME, Aug. 28 (UPI) -- A criminal investigation has been launched to determine why buildings that were reportedly reinforced, collapsed during an earthquake that struck the country.
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- UPI Almanac for Sunday, Aug. 28, 2016By United Press International On Aug. 28, 1963, Martin Luther King Jr. delivered his "I have a dream" speech from the steps of the Lincoln Memorial before more than 200,000 people gathered for a "Freedom March" in Washington.
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