Right on schedule, the US Treasury received around $11 billion from the proceeds of Mortgage-backed Securities sales last Thursday. Moreover, the US Treasury released an update on the MBS portfolio wind down titled; ‘Taxpayers Recoveries Reach 70 Percent Milestone‘. The title left us thinking; hmmm… sort of… Here, I highlight the hidden confiscation involved with this particular piece of trickery and present the usual daily treasury statement charts.

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As our regular readers may know, we’ve been taking note of the economic unravelling of the Russian Federation over recent weeks and months. Our main contention has been that the prevailing monetary conditions have been creating profound economic and financial stress. Here, I present two further pieces of the puzzle.

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Thanks and welcome to all who subscribed to our newsletter service over the past month! I just thought that I would remind anyone who’s considering subscribing that the August newsletter will be published on Monday. Moreover, I thought I’d review a few insights and a trade idea that we outlined in our June 2011 newsletter (available here).

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Robert Prechter was interviewed on Bloomberg TV today. Two months ago he was interviewed by Curt Renz (June 14th) and said that the technical picture for the stock market was terrible (I believe he said that US equities were in ‘Free Fall Territory’). Even if you view the subsequent market crash as mostly coincidental, you must admit that it was rather spooky timing! See below for the video and summary.

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Marc Faber was interviewed by Bloomberg TV yesterday about the Fed’s decision not to engage in QE3, equities, bonds and commodities. An interesting interview, see below for the video and summary.

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The ongoing chaos in London has been widely covered by the press over the past few days. Unfortunately, the lenses with which the consensus views the world have muddled the reality of the situation. Rather than considering this to be another development in a long story of souring social mood, commentators have reported it as random violence — to be likened to a strike of lightening… To be sure, we don’t think that the specifics of the last few days could have been predicted with any precision, but we scarcely consider the ordeal to be a ‘surprise’ as such! Here, I consider the decline in social mood in the developed world and outline the implications for its great ‘international’ cities. continue reading »

Somewhat contrary to our guesses late last week, the futures markets are suggesting that another ‘risk-off’ day could be coming (of course, this could easily be reversed later today!). As we say, the timing of very short-term daily fluctuations scarcely plays to our aptitudes!

 

However, the Russian MICEX index continues to display weakness. Inline with the views expressed in our June 2011 newsletter, the index broke through the May low (on Friday), and seems to be continuing lower…

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