OTHER TIPPING POINT CATEGORIES NOT LISTED ABOVE

Greenspan Says Congress Should Let Bush's Tax Cuts Lapse  BL

FLASH CRASH - HFT - DARK POOLS

MARKET WARNINGS

ICI Reports Largest Equity Fund Outflow In Two Months, Coinciding With Short Covering Market Surge

Remember how the market surged last week? One would think this may have been driven by something as fundamental as actual capital instead of HFT channel stuffing, frontrunning, and other no volume gimmicks, and that retail might actually be participating in a rally for once... One would be wrong. According to ICI even as the market was surging, once again - on no volume, it was merely an orchestrated means for mutual funds to sell out of stocks at slightly better prices to cover another week of massive outflows. In the week ended July 7, ICI reports that domestic equity mutual funds saw $4.1 billion in outflows, the largest outflow in the past 2 months, and the third biggest weekly redemption in 2010! This is also the tenth sequential outflow, amounts to $34 billion in total outflows YTD, and represents a losing streak even worse than that of the BDIY.... Yet stocks jumped. One day we hope congress will ask the Fed to explain this particular observation. And yes, in other lack of news, investors no longer trust stocks period: $6 billion in capital was allocated to taxable bond funds. Nobody cares about 10% returns with the possibility of a total wipe out. 4%, capital preservaton, and staying away from the corrupt and broken stock market is more than enough for most Americans nowadays.

GOLD MANIPULATION

VIDEOVIDEO TO WATCH

This places Obama in a difficult position

He must politically talk austerity while the money supply collapses

The bottom line here is that Americans don’t believe in President Obama’s leadership,” says Rob Shapiro, another former Clinton official and a supporter of Mr Obama. “He has to find some way between now and November of demonstrating that he is a leader who can command confidence and, short of a 9/11 event or an Oklahoma City bombing, I can’t think of how he could do that.” I found this quote in an FT article earlier in the week and it sent chills all over my body.  This is how the strategists in Washington D.C. think.  They are sick, twisted people.  This guy doesn’t even realize how sick and twisted what he said is which is why he said it.  Imagine what they say off the record!

Guest Post- The Dangers Of A Failed Presidency  ZH

 

I have been calling Barrack Obama’s Presidency a failure for at least six months now and it seems that I now have considerable company in this assessment as it becomes obvious to most.  It is not a failure because of the Republicans.  It is not a failure because of events beyond his control.  It is a failure because this was a man that filled a depressed and downtrodden nation with the audacity of hope.  When I voted for the man I knew it was against my personal financial interests.  It was clear what he would do with taxes.  Nevertheless, I got to the polls and voted for this fifth avenue creation thinking maybe, just maybe he might do some of the things he said.  Most important to me were two issues related to the military-industrial complex (see Eisenhower’s warning on this during his Farewell Address http://www.youtube.com/watch?v=8y06NSBBRtY) and civil liberties.  George W Bush was turning America into a depressed police state with perpetual war and consolidation of power between a corporate oligarchy and entrenched political class.  A nation where the masses voluntarily gave up many of the liberties the founding fathers fought for merely to ease the fear that consumed them and which was propagated by the administration and the media.  I and many others that voted for him even though they disagreed strongly with his economic policies thought he would at least reverse this trend.  Why did we think this?  Cause he said so.  How foolish we were.  That being said, the real answer was certainly not John McCain as I think we would be in just as bad shape with him.  I think that what this experience has taught us is that the President of the United States answers to others behind the scene.  There are many theories on who these others are but I will keep it very simple.  There is clearly a power elite that consists of a union between big corporate and financial oligarchs and career bureaucrats in Washington D.C.  These are the folks that pull the strings of all administrations.  All you have to do is look at the trends that have been in place since George W Bush and continue under Obama to see what these players want.  Bigger government and thus more Federal power, more wealth for the oligarchs (thank you Federal Reserve) and an erosion of the middle class, and reduction of civil liberties in the name of the 1984-like never-ending “war on terror.”  I believe in a war on terror of my own.  A war against the terror that Washington D.C. is constantly trying to inject into your head so that you sheepishly give away all you rights and power to them.  That’s my war on terror.  Ok, so what do I mean by “The Dangers of a Failed Presidency.”  I mean that it is July of an election year and Obama’s magic spell that held sway over the American people and the world for about three months has completely washed away.  I mean that the printed money mirage recovery that we have had to tragically watch is ending and we have no job growth to speak of other than a few hundred thousand census workers.  The public has no appetite for more spending and Bernanke has no cover to print more money (yet).  As such, if people think things are in freefall now for this administration just wait and see how the next several months pan out.  This then brings me to the following quote: The bottom line here is that Americans don’t believe in President Obama’s leadership,” says Rob Shapiro, another former Clinton official and a supporter of Mr Obama. “He has to find some way between now and November of demonstrating that he is a leader who can command confidence and, short of a 9/11 event or an Oklahoma City bombing, I can’t think of how he could do that.” I found this quote in an FT article earlier in the week and it sent chills all over my body.  This is how the strategists in Washington D.C. think.  They are sick, twisted people.  This guy doesn’t even realize how sick and twisted what he said is which is why he said it.  Imagine what they say off the record!  You can take this quote in many different ways but none of them are good.  I am not going to say anything beyond the fact that I would be VERY suspicious if some sort of event occurred before the elections.  Google the term “false flag.”  Also remember Rahm Emmanuel’s famous quote of  “you don’t ever want a crisis to go to waste; it’s an opportunity to do important things that you would otherwise avoid.”  Think about this deeply.  This doesn’t mean do what the public wants, or follow the constitution.  It means that that those pulling the strings of power have the opportunity to do what THEY want, what fits THEIR ideology.  Hitler is the most famous modern example of a leader that used a crisis to form his fascist state.  Again, I am not talking about Obama in isolation.  I am referring to the power structure that has been firmly in place since the 9/11 attacks.  Many call it a silent coup.  I agree with this assessment.  This email is not meant to create fear.  It is actually meant to get people ready if things get crazy for whatever reason.  It is a challenge to people.  I challenge everyone to think about how they would react should another terrorist attack or something along those lines occur.  I was there for 9/11 and I saw the buildings go down in person.  I know what it was like to be manipulated by my own government and media in the wake of such an emotional trauma.  I also see that what we have done since, with things such as the Patriot Act and two wars that are still ongoing, and I have reflected on how they have changed America for the worse and provided a fertile ground for the elite to take away more of our rights and our wealth.  So my rallying cry is that we must be strong and fearless in the face of fearful events.  In the wake of anything that may occur in the years ahead we must not react on emotion and NEVER give away our inalienable rights in the name of protection from big brother.  Be fearless, strong and resolute.  Spend more time with your neighbors and build things up at the local level.  If we have those supports then we will be less inclined to cry to the magicians in D.C. and the Federal Reserve for “help.”

QUOTE OF THE WEEK

 

"In a market, the cumulative expenditure of the modestly endowed easily trumps the expenditure of the rick. And even the rich are ultimately answerable to the market: They became rich by satisfying customers, and will remain rich only so long as they (or their investments) continue to satisfy consumers. Consumer sovereignty is far more powerful a constraint on the rich than political sovereignty. Indeed, even the erosion of the rich by democracy is ultimately self-defeating, for it eliminates that class of men and women in public life who are under no financial pressure to remain at their posts, pursuing policies in which they no longer believe. It is no coincidence that the democratization of politics has been accompanied by a decline in resignations on points of principle or of honor. The vast majority of modern politicians simply needs the money. rong>But even the restoration of a rentier political class would not be enough to restore the blessings of good government. As long as politicians must compete for votes, they cannot govern honestly, or even disinterestedly. They cannot reverse decisions or policies that have proved unworkable. They must persist, even in intellectual error, and cannot escape a certain narrowness of vision. To release politicians from this predicament, a revolution is required. That revolution must be one not of blood, but of constitutional and political ideas. It must put an end to democracy without limits, before the prosperity of the species is destroyed and liberty extinguished...The only lasting solution to the plague of unlimited democracy is to attack democracy at its moral foundation: the political equality of the citizen." Dominic Hobson Editor-in-Chief Global Custodian magazine

 

The ECB is barely on speaking terms with the IMF  IMF - "Inflation Maximizing Fund" as it was dubbed in a Bundesbank memo. From: Deutschland uber alles does not mean a trickledown recovery in EMU Pritchard

ZH - Zero Hedge - Business Insider, WSJ - Wall Street Journal, BL - Bloomberg, FT - Financial Times