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10 Charts That Capture The Market’s Confused Zeitgeist

In lieu of his traditional morning commentary, and while preparing for the key meeting this week, Nomura’s derivatives guru decided to pass-along a few charts “which capture the current market zeitgeist” along with the conclusion that the overall “output still speaks to the investors positioned for the end-of-cycle “Slow-flation” narrative: Long Global DM Bonds / Rates, Under-positioned for Equities rally and now tilting “Short Dollar” via tactical Longs developing in Gold, Commods and even Bitcoin.” Of course, with the US economic expansion just 6 days away from being the longest on record (unless the NBER decides in the next few months that the recession started some time in Q2), it is not difficult to see why end-cycle trades dominate – both on Wall Street and the Fed, which is doing everything in its power to extend the weakest recovery on record my at least a few months, even if it is kicking and screaming. So, without furhter ado, here are – as McElligott calls them – the goods: 1. Bitcoin: bitcoin is a play on escaping “negative yielding debt”, as global central banks tilt back to “easing” and currency devaluation in 2019.   2. Gold: this best way to “short the USD” is the most inversely-correlated asset to US short-term real yields in the past 20 years.   3. Fund Performance: Performance beta across assets/factors shows continued de-risking into...

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“Empty Shelves & Massive Job Cuts” Loom As Zimbabwe Abandons USDollar… Again

After a decade of dollarization to escape from the hyperinflationary hell of Mugabe’s money-printing, Zimbabwe has implicitly re-introduced the ZimDollar as the nation’s sole legal tender – banning the use of currencies such as the USDollar and South African Rand in favor of its so-called RTGS dollar. As a reminder, Zimbabwe abandoned its own dollar in 2009 after years of hyperinflation had destroyed trust in the local unit, but, after a hoped-for economic turnaround, promised by new Zimbabwean President Emmerson Mnangagwa, is yet to materialise, As Reuters reports, Finance Minister Mthuli Ncube said in a video posted on Twitter “The march towards full currency reform is part of our transitional stabilisation programme…This move is really beginning to restore full monetary policy.” Additionally, the central bank also hiked its overnight lending rate to 50% from 15% as a part of a set of measures to protect the RTGS dollar introduced in February. Jee-A Van Der Linde, an economist at South Africa-based NKC African Economics warned that banning the use of currencies such as the U.S. dollar and South African rand could create panic since Zimbabwe did not have large foreign-currency reserves to back the RTGS dollar. There was nothing standing in the way of the Zimbabwean central bank printing money as it had done in the past, he added. Van Der Linde is not alone in his skepticism, as TechZim...

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Frustrated Beto Donors Having Second Thoughts Despite Crucial Endorsement from Former Roommate

Former congressman and failed Senate candidate Beto O’Rourke needs to make a splash at the first Democratic primary debate in Miami this week if he wants to revive his failing presidential campaign. O’Rourke is floundering at 3.3 percent in the Real Clear Politics polling average, as Democratic primary voters line up behind old favorites (Joe Biden and Bernie Sanders) and flock to intriguing newcomers (Pete Buttigieg and Kamala Harris). The enthusiasm he managed to generate as a Senate candidate running against Ted Cruz in Texas hasn’t carried over onto the national stage. MORE: Woke to Broke: Beto’s Fall from Grace Even some of Beto’s earliest supporters and financial backers are frustrated and beginning to look elsewhere, BuzzFeed News reports:   BuzzFeed News spoke to more than a dozen small-dollar donors. . .who said they gave O’Rourke money on the day he announced his run for president — in what was, for many of them, their first-ever political donation. Back then, they were excited, energized, and hopeful about the campaign. As O’Rourke has slipped in the polls and out of the national spotlight, most echoed Simental’s feelings of disappointment, frustration, and confusion, even as they still supported O’Rourke’s candidacy. And many share a feeling that O’Rourke’s relative absence from national media at the beginning of his campaign is partly at fault for his struggles. “Oh my God, I think he...

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Smollett Asked Police To Stop Filming After Alleged Hate Crime

Almost 70 hours of released police video show actor Jussie Smollett and his manager asking police officers to stop filming him in the aftermath of the alleged hate crime he experienced in January. In the video from ABC 7 Chicago, Smollett, whose face is blurred, is seen still wearing the rope he claimed his assailants put around his neck. He is heard telling the officers that there is bleach on him. He then removes the rope, and his manager asks the police officers if their body cams are recording him. “Yeah, this is all being audibly and visually recorded,” the officer responds. Smollett says that he does not want to be filmed. “Ok so can you turn it off?” the manager asks the police officers. The officer confirms that Smollett and the manager are giving them permission to turn off the camera, then does so. Other released videos show footage of the Osundairo brothers, who Smollett allegedly paid to stage the attack, in a taxi to meet Smollett prior to the staging. The brothers are wearing what appear to be hazmat suits with their faces obscured. An Illinois judge recently appointed a special prosecutor to review actions of Cook County state attorney Kim Foxx during the investigation into the attack. Foxx initially said she was recusing herself from the case, but later clarified that she meant that in a...

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Judicial Crisis Network’s New Ad: Dems Must Release SCOTUS Nominee List

The Judicial Crisis Network launched a new ad campaign on Tuesday that calls on Democrats to release their list of potential Supreme Court judge nominees. The ad campaign, costing 1.1 million dollars, will be up for two weeks as the candidates gather for the debates in Miami this week. Former vice president Joe Biden is the focus of the ad, as he is the frontrunner for the Democrats. In 2016, when President Donald Trump ran for office, he released his list of nominees to the public. The ad compared Democratic candidates to Trump, saying, “Trump released his list. Why won’t you?” The ad says Trump was “open and honest” with the public in his 2016 campaign, and derides Biden and other Democrats for not releasing their lists. Democratic presidential nominees need to release their list to the public so that “American people can judge for themselves,” said Judicial Crisis Network’s Chief Counsel and Policy Director Carrie Severino. According to the Judicial Crisis Network webpage, “the Judicial Crisis Network is dedicated to strengthening liberty and justice in America.” “We support legislative and legal efforts which oppose attempts to undermine the rule of law; unconstitutionally expand the power of government; politicize the enforcement of the law; threaten American sovereignty; supplant American law with foreign or international law; or bias the legal system on behalf of politically favored groups or individuals.” The post Judicial Crisis Network’s New Ad: Dems Must Release...

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Former Common Council President to Mayor Pete: ‘Resign’

After the fallout from a recent police shooting unleashed turmoil on South Bend, former Common Council president Derek Dieter has a message for Mayor Pete Buttigieg: “resign.” “Because of Pete’s selfishness, in my opinion, he is still the mayor,” Dieter told the Washington Free Beacon. Dieter explained that if Buttigieg were to resign, a provisional mayor would be chosen in a caucus by city precinct leaders. A new mayor, Dieter said, would be able to devote greater attention to South Bend than Buttigieg as he is running for president. “To me, it doesn’t make sense. If you’re running for president, that’s a lot of pressure, you got to be on the road,” Dieter said. “Everything that happens in South Bend shouldn’t be on your mind. You should be concentrating on running for president. So, I’m adamant that he should resign as mayor.” Dieter’s comments come after Buttigieg’s most recent scandal, in which a white police officer shot and killed a black man on June 16. It is the latest in a series of race-related scandals that have plagued Buttigieg since he took office in 2012. Dieter added that he has “no problem” with Buttigieg running for president, but he would like the mayor to admit that he has been unable to govern South Bend and run a campaign at the same time. “If you’re going to be running for...

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Experts: Iran Air Defense Missiles Must Be Taken Seriously

https://media.breitbart.com/media/2018/08/wi/afp/13/6c8fef_an-iranian-military-truck-carries-missiles-an-18-2018-parade-in-tehran-mark-e1545432141329.jpgDubai – The shooting down last week of a sophisticated US drone by an Iranian missile demonstrates that Tehran’s air defence capabilities can pose a challenge to US air superiority, experts...

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Iran, Russia, China Continuing Operations to Disrupt 2020 Elections

Foreign governments including Iran, China, and Russia are expanding their covert operations to influence the 2020 U.S. elections, according to multiple senior intelligence and Trump administration officials who disclosed Monday that these countries are using a series of networks to foment unrest in America. In the lead-up to the 2020 elections, the United States is already laying the groundwork to boost its own counter-operations and detection methods in order to thwart a possible attack on the nationwide election systems, as well as social media efforts by rogue nations to influence any results, these officials said. Top U.S. intelligence, law enforcement, and military officials have already begun to meet with the 2020 political contenders as well as the respective political parties in a bid to unify data collection and help pinpoint the source of any foreign cyberstrike. While Russia has been the primary focus since its well-documented efforts to sway the contentious 2016 presidential election and later the 2018 congressional midterms, intelligence officials disclosed that they have expanded their efforts to also monitor Iran, China, and North Korea. “We’re focused on both infrastructure security as well as foreign influence operations,” a senior intelligence official said during a Monday afternoon press call that was held only on background. “From our perspective, … we do believe the 2020 elections are a potential target for state and nonstate actors.” “Foreign influence operations remain...

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Pelosi Lauds Border Bill as Not Funding ‘Failed Mass Detention Policy’

The House of Representatives is expected to vote Tuesday on a bill that Speaker of the House Nancy Pelosi (D., Calif.) cheered for funding “humane alternatives to detention” instead of “the Administration’s failed mass detention policy.” “The legislation protects families. It does not fund the Administration’s failed mass detention policy, but, instead, funds effective, humane alternatives to detention with a proven track record of success,” Pelosi said Sunday night. “It places strict limits on influx shelters, protects sponsors from DHS immigration enforcement based on information collected by HHS during the vetting process and creates strong oversight by Congress including to protect unaccompanied children.” The funding bill is a response to the swelling influx of Central American immigrants arriving daily at the southwestern border, with more than 150,000 people apprehended attempting to cross illegally in May alone. The result has been a detention system stretched well beyond its means, prompting widespread criticism of conditions from the media and calls for emergency funding from both U.S. Customs and Border Protection and the New York Times. Congress has been slow to act, however. House Democrats blocked a Republican-proposed amendment that would have offered $4.5 billion in emergency funding. Since then, negotiators in the House and Senate have worked to bang out a compromise aid package, with the Senate appropriations committee passing a proposal last week. The House proposal expected to get a...

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