Roberto Abraham Scaruffi: September 2013

Monday, 30 September 2013

Facebook icon Twitter icon Forward icon
Articles posted on Monday, 30 September 2013
mobile website

Terminal Velocity (22) 'Stimulating Taper'

Written by Adam Whitehead,
Terminal Velocity 'Helicopter Flight Simulator dot-dot-dot . Flight Shtimulator' suggested that Jackson Hole had signaled a hardening in US economic policy; to prioritize domestic conditions at the expense of the Global Economy especially in Emerging Markets. President Obama's recent failure at G20, to create a global consensus on Syria, was further evidence of the breakdown in global cooperation that could lead to American unilateralism. But perhaps the recent Putin "rescue" will forestall that (unilateralism). Read more >>

Market Commentary: Dismal Day For The Markets As Shutdown Looms

Written by
Closing Market Commentary For 09-30-2013
Markets closed down, but somewhat off the morning opening lows. Gaps that occurred during the opening in the small caps were almost filled and the large caps still need to melt much higher. The USD is down and the Euro is up while gold slowly sinks.
By 4 pm the averages showed up with some green volume but not enough to make much difference in the closing numbers. The aftermarket did some melting up but never reached the 2:30 highs.

What We Read Today 30 September 2013

Econintersect: Click Read more >> below graphic to see today's list.

The top of today's reading list reports on the readiness of HIX (Obamacare health insurance exchanges) which open tomorrow ........ and the last article is about water shortages in the U.S.

SEC Charges New Jersey-Based Accounting Firm and Founding Partner for Failed Audits of China-Based Company

from the Securities and Exchange Commission
The Securities and Exchange Commission today charged a New Jersey-based audit firm and one of its founding partners for their roles in the botched audits of a China-based company that failed to disclose related party transactions by its CEO and others. An SEC investigation found that Patrizio & Zhao LLC (P&Z) and Xinggeng (John) Zhao, who is head of the firm's China practice, failed to comply with U.S. auditing standards and exercise appropriate professional care and skepticism in conducting audits and interim reviews for Keyuan Petrochemicals, which was charged with accounting and disclosure violations by the SEC earlier this year.

Market Commentary: Market Recover Some Of Mornings Losses

Written by
Midday Market Commentary For 09-30-2013
Large caps have recovered almost half of this mornings drop and the small caps have recovered 90% of their fall. Investors are showing signs of renewed faith that the government shutdown crisis is going to be solved by midnight tonight. Volume is tapering off somewhat as the buying trend is melting up.
By noon the averages were starting to show signs of weakness and perhaps we have seen the highs for the day. It wouldn't all that much to send the averages into a tail-spin and test the morning lows.

Israel on Counter-Offensive: Netanyahu vows to rebut Irans sweet talk

The Israeli Prime Minister's on a mission to thwart Iran's recent efforts to unfreeze its relations with the West. Benjamin Netanyahu claims Tehrans sweet talk is just a trick to buy the country nuclear programme more time.

September 2013 Texas Manufacturing Survey Growth Strengthens

All Federal Reserve districts have released their September surveys - and all but one are forecasting growth (one forecast is for zero growth). A complete summary follows.

Market Commentary: Averages Sink Like The Titanic On The Opening

Written by
Opening Market Commentary For 09-30-2013
On Sunday the SP500 futures gaped down 10.27 points to bad our crystal balls didn't alert us, would have been a nice scalp. This morning's premarket was still down some 85% and sank further on the market's opening.
By the 15 minute mark the averages had recovered +0.05% from the initial opening lows and began to sea-saw back and forth on relatively moderate to heavy volume as investors are contemplating the odds of a government shutdown tonight at midnight.
By 10 am the sinking ship was bobbing in the sea of red volume as any remaining investors on board were deciding what their prospects of survival were.

A Word from This Newsletter's Sponsor

The Next Industry to Crumble...

Imagine owning (up over an insane 4,000% since 2001) when
Internet sales rendered big-box retailers obsolete. Now an industry 99% of
us use daily is set to implode... And 3 established companies are perfectly
positioned to take advantage of this game-changing economic shift.

September 2013 Chicago Purchasing Managers Barometer Well Above Expectations

Econintersect: The Chicago Purchasing Managers Index improved slightly for the third month in a row after June's largest drop in almost five years.

Crisis Chronicles: The 'Not So Great' Re-Coinage of 1696

by James Narron and David Skeie - Liberty Street Economics, Federal Reserve Bank of New York
In the late 1600s, England operated a bi-metallic monetary system of high-value gold coins and lower-value silver coins. In the early 1690s, however, the market price of silver began to rise at a time when the mint price of gold was higher than the market price. Thus, gold bullion was flowing to the mint while silver coins were flowing to the commodity markets. By 1695, nearly half of the silver specie was missing from coin in circulation in England as coins were 'clipped' (shaved) with the result that their face value no longer reflected the metal content. Ironically, low-weight coin was still accepted for tax payments. In this post, we recount England's efforts to remedy the 'ill state of the coin of the kingdom' during the re-coinage of 1696.

The Armageddon Looting Machine: The Looming Mass Destruction from Derivatives

by Ellen Brown, Web of Debt
Increased regulation and low interest rates are driving lending from the regulated commercial banking system into the unregulated shadow banking system. The shadow banks, although free of government regulation, are propped up by a hidden government guarantee in the form of safe harbor status under the 2005 Bankruptcy Reform Act pushed through by Wall Street. The result is to create perverse incentives for the financial system to self-destruct.

China: Manufacturing Data Disappoints

Econintersect: The final HSBC PMI for China in September has come in at 50.2, up breaking-news-captionfrom 50.1 in August. Because the reading is above 50 (the dividing line between expansion and contraction) the result indicates that China's manufacturing is growing, but just barely. The reading is both disappointing and a surprise since it is a fill point below last week's "flash" PMI (preliminary estimate). The final reading is usually with 0.2 or so of the preliminary number.

Whatever the News, Follow the Charts

Ignoring the News & Watching The Charts
by Harlan Pyan, All About Trends
While the markets continue to digest the recent move off the September lows with the SPX doing so via a pullback (price) and the NASDAQ Comp. doing so sideways (time) many market leading stocks are trading to the beat of their own drum hence its a market of stocks.

Where Sequestration Hits Hardest

Econintersect: The sequestration regime which began earlier this year will cut $1.3 trillion from federal expenditures over a ten-year period. But the effects are net felt equally across the nation. One of the hardest hit counties is Los Alamos NM, home to the Los Alamos National Laboratory. Los Alamos will see an impact of $6,358.97 per capita. Los Angeles County in California will see an impact of only $216.27 per capita.

Research and Development Proximity Creates Clusters of Knowledge

by Gerald A. Carlino and Jake K. Carr - Business Review, Federal Reserve Bank of Philadelphia
The United States is home to some of the most innovative companies in the world, such as Apple, Facebook, and Google, to name a few. Inventive activity depends on research and development, and R&D depends on, among other things, the exchange of ideas among individuals. People's physical proximity is a key ingredient in the innovation process.

Budgeting the Federal Government's Response to Disasters

by Dan Hoople - Congressional Budget Office (CBO)
Recently, the Congress has expressed renewed interest in the cost of the federal response to major disasters. Some of that interest may stem from the Budget Control Act of 2011, which allows some spending for disasters above the limits on discretionary appropriations without triggering sequestration (a cancellation of funding that Congress has previously provided). (CBO recently estimated that this allowance for disaster-related funding, which is based on the 10-year average of such funding excluding the highest and lowest years, is $12.1 billion for fiscal year 2014.)

The Economics of Student Loan Borrowing and Repayment

by Wenli Li - Business Review, Federal Reserve Bank of Philadelphia
Reports in the popular press and policymakers' concerns about student loans have greatly intensified in recent years because of rising student loan balances and defaults. Even greater cause for concern arose as student loans outstanding passed credit card debt to become the single largest nonmortgage household debt in 2012. Worries about the risk of massive default have even prompted a comparison with the subprime mortgage crisis.

Central Bank News: More Cuts and Criticism of the Fed

Monetary Policy Week in Review - Sep 23-27, 2013: Israel, Hungary cut, Fed move sparks criticism of communication
by Peter Nielsen, Central Bank News
Last week the central banks of Israel and Hungary cut their policy rates while 10 other banks maintained rates as the U.S. Federal Reserve's surprise decision to delay tapering its asset purchases reverberated through global markets amid criticism of its communication skills and forward guidance.

Documenatary of the Week: Ray Dalio Describes the Economy

Econintersect: Legendary hedge fund manager Ray Dalio has developed a simple three part template to describe the "economy machine". This can be reviewed in the 31 minute minute video selected for this week.

GTA V is the Fastest-Selling Entertainment Product Ever

by Felix Richter,
GTA V reached the billion-dollar revenue milestone faster than any other entertainment product in history. It took the game only three days to achieve what Avatar, no less than the most successful movie of all times, did in 17 days.

Infographic of the Day: Organizations Lack Confidence in Their Performance Management

Despite an understanding that talent is a source of competitive advantage - and the fact that performance management programs have been an established business practice for more than 50 years - organizations today still struggle to establish effective programs.


Not For Profit - For Global Justice
The Peoples Press - Powered By People - For People
 Thank You.
To those of you who were able to respond to my appeal for support, Thank you.

Unfortunately we have not met our expenses and I need to post this notice again in the hope that others may respond.

This Month 304 people have responded to our appeal. 

We need another 46 people to help support our fight against the war machine.
Can YOU Make a Contribution Without Breaking the Bank
I would appreciate your providing whatever you can- $1, $5, $10, $20, $50,$100-

To Use your credit card or check, click here:

or if you prefer to send a check or money order, Information Clearing House, PO Box 365 Imperial Beach, CA 91933. USA.

Thank you. Your help is greatly appreciated. Tom Feeley

"Wars will be stopped only when soldiers refuse to fight, when workers refuse to load weapons onto ships and aircraft, when people boycott the economic outposts of Empire that are strung across the globe. " -  Arundhati Roy, Public Power in the Age of Empire
"Come you masters of war You that build all the guns You that build the death planes You that build the big bombs You that hide behind walls You that hide behind desks I just want you to know I can see through your masks" -  Bob Dylan
"We used to wonder where war lived, what it was that made it so vile. And now we realize that we know where it lives...inside ourselves." - Albert Camus
September 30 / October 01, 2013
Click Here For Op-Ed Articles
Click Here For Hard News Items
Click Here For Cost Of War
Follow us on Twitter    Support Information Clearing House     Visit our blog 
Qatar and Saudi Arabia are Client States, their Master is the United States: President Al Assad
Video & Transcript
Is Europe independent from the American policies today?
The Free Syrian Army is Holding Talks With Assad's Senior Staff
By Robert Fisk
There is no demand - at least at this stage - for Assad's departure.
Lavrov Says Syrias Rebels Have Chemical Arms, Proof Mounting
By Interfax
"We are certain that militants have more than once attempted such provocations. Therefore, the direct sponsors of opposition forces, who offer them support, must also see to it that they give up on further provocations," the minister said.
'Foreign Terrorists' Fighting in Syria - Foreign Minister
In a speech to the UN General Assembly, Walid Muallem compared this "invasion" to the 9/11 attacks on New York. "terrorists from more than 83 countries" are killing soldiers and civilians across the country.
Britons Fighting with Syria's Jihadi 'Band of Brothers'
In this Channel 4 News exclusive, British and other western jihadi fighters are shown in Syria as never before - fighting and killing, shopping and preparing for a wedding.
The Sarin Mysteries
Syria, Sarin, and Casus Belli
By Michael Parenti
Recall how the Saddam government in Iraq, hoping to avoid war, cooperated fully with U.N. inspectors hunting for WMDs.
Was Obama Planning on Striking Syria or Working to Gain Traction in Talks With Iran?
By Mahdi Darius NAZEMROAYA
Syria is essentially being disarmed of its strategic deterrent against Israel's biological, chemical, and nuclear weapons, which would figure importantly in a Syrian war against Israel or a wider US-Iranian regional war.
A World in Which No One Is Listening to the Planet's Sole Superpower
By Dilip Hiro
If you need a marker for the waning of American power in the Greater Middle East, look no further.
The Israeli Lobby Sets Out To Defeat Obama on Iran
By MJ Rosenberg
The Netanyahu government and its lobby, the American Israel Public  Affairs Committee (AIPAC), are both determined to end the process and have the ability to do it. Continue
Greenwald, Scahill Vow to Unmask NSA's 'US Assassination Program'
"The really important thing to realize is the desire for surveillance is not a uniquely American attribute," said Greenwald.
The NSA Deserves a Permanent Shutdown
By Norman Solomon
The NSA, using the latest digital technology, is able to squirrel away the content of telephone, e-mail and text communications -- in effect, "TiVo-ing" it all, available for later retrieval.
The Sparks of Rebellion
By Chris Hedges
Corporations are beyond regulation or control. Politicians are too anemic, or more often too corrupt, to stand in the way of the accelerating corporate destruction.
Government Shutdown Approaches
What a Way to Run a Country
By Stephen Lendman
Washington is dysfunctional, out-of-control, corrupt, lawless and self-serving.
The Strange Politics of Southern Hunger
By Sue Sturgis
Number of Americans who rely on the food stamp program: nearly 47 million - Number of those who are children: nearly 17 million - Who are senior citizens: 5 million.
People Across America Are Waking Up to the Effects of 'Disaster Capitalism'
A Much Better Way of Life Is Possible
By Kevin Zeese, Margaret Flowers
People are taking initiative rather than waiting for leaders.
Freed by DNA,
Henry James on His 30 Years Behind Bars for Crime He Didn't Commit:
Video and Transcript
Louisiana, the heart of the world's prison capital, where more people are behind bars any other state per capita - an incarceration rate 13 times that of China.
'Freedom's Just Another Word...'
The Police State of America
By Dave LIndorff
There is one difference between China, the police state I lived in and reported on back in the 1990s, and the US police state of today. In China, everyone knows they are living in a totalitarian society.
Hard News  
Iraq: Car Bombs Kill At Least 54 People:
A series of car bombs in mostly Shiite neighborhoods of the Iraqi capital, Baghdad, have claimed over 50 lives, leaving over 100 people injured. Officials are blaming Al-Qaeda for the string of attacks, but no group has claimed responsibility yet.
Syria govt 'ready to go to Geneva for dialogue, not to hand over power to anyone' - FM:
The Syrian government is ready for peace talks with the opposition, but the legitimacy of President Assad "isn't up for discussion," Syrian FM Walid Muallem said. It comes as the Syrian opposition remains undecided on who will represent them at Geneva.
Chemical weapons officials say coordination with Syrian government has been 'efficient':
Syria's government has been "businesslike and efficient" ahead of meetings this week to lay the groundwork for the destruction of the country's chemical weapons, officials charged with overseeing the effort.
Iran behind anti-WMD rider in chemical watchdog's decision on Syria - Lavrov:
A small but far reaching clause in the chemical watchdog's decision on Syria that urges all non-signatories of the Chemical Weapons Convention to join the treaty was actually proposed by Iran - and supported by the US - Russian FM Sergey Lavrov revealed.
Iran open to talks with US on nuclear program, foreign minister says:
Iran's foreign minister says his country is open to negotiating about its top-secret nuclear program, including possible inspections, but that the United States must "dismantle its illegal sanctions."
Rouhani Orders Study of Possible Iran-US Flights:
Iran's president is asking aviation authorities to study the possibility of resuming direct flights between Iran and the United States for the first time in more than three decades.
Transcript of remarks made by Obama and Netanyahu after bilateral meeting:
After their hour-long meeting, Obama and Netanyahu spoke with the press; here is the full transcript of their remarks.
2 killed as 'Qaeda' gunmen seize army HQ in Yemen port city:
Suspected Qaeda militants, dressed in army fatigue, stormed army headquarters in Mukalla, south Yemen, killing two soldiers and taking others hostage
Bahrain jails another 37 activists for up to 15 years:
The ruling comes one day after the court sentenced 50 other activist and protest leaders, most of whom gave confessions under torture according to a human rights group.
Pakistan explosion: Peshawar market blast toll rises to 42:
It was the third deadly blast to hit the city in a week. Last weekend suicide blasts killed at least 81 at a church in Peshawar and on Friday, 19 people died when a bus carrying civil servants was attacked.
US kills another 4 people in Pakistan:
It was the second strike in less than 24 hours in a violent area with a long history of U.S. drone strikes and militant activity. At least three alleged militants were killed Sunday in a drone attack on the Dargamandi area in North Waziristan, also known as a bastion of Taliban and al-Qaeda linked militants.
In public relations exercise:
Pakistan condemns latest drone strike in North Waziristan:
The Ministry of Foreign Affairs released a statement denouncing the US strike and called for the US to bring a halt to the program. "These unilateral strikes are a violation of Pakistan's sovereignty and territorial integrity." a statement released on the Ministry of Foreign Affairs' website said.
Afghanistan: 25 Rebels Killed in Afghanistan's Helmand Gun-Battle:
Twenty-five militants were killed after they stormed security posts of public order police in Southern Helmand province, an official claimed on Monday.
11 killed in check-post attack in W. Afghanistan:
Eleven people were killed early Monday morning when the militants raided a security check-post in western Afghanistan's Herat province, said a district police source.
Occupation to continue as Chuck Hagel seeks deal to keep 10,000 troops in Afghanistan:
A new security agreement is needed to allow for the post-2014 presence, including provisions allowing the United States access to various bases.
Nigeria attack: 50 Students shot dead as they slept:
Suspected Islamist gunmen have attacked a college in north-eastern Nigeria, killing up to 50 students.
Egypt court upholds jail term for Morsi's PM:
A Cairo appeals court has upheld a one-year sentence handed to former Egyptian prime minister Hisham Qandil, in the latest blow to ousted president Mohamed Morsi's inner circle.
Lawless Libya: Armed men shut down Libya gas facility in Berber region:
Armed men have shut down a gas facility in the mountainous western region of the country, predominantly inhabited by members of Libya's Berber minority - also called Amazigh. The ministry of electricity has warned that the latest closure will lead to severe power cuts.
Russia: Drop Piracy Charges against Greenpeace: HRW -
 Russian authorities should immediately release from custody all 30 people arrested in connection with a Greenpeace protest in the Barents Sea.
Narcoland: Journalist Braves Death Threats to Reveal Ties Between Mexican Government & Drug Cartels: Video -
Anabel Hernández has been described as one of the most courageous journalists in Mexico. In 2010, she published a groundbreaking book linking top Mexican governmental officials to the world's most powerful drug cartels.
NSA stores metadata of millions of web users for up to a year, secret files show:
Vast amounts of data kept in repository codenamed Marina - Data retained regardless of whether person is NSA target - Material used to build 'pattern-of-life' profiles of individuals
Email surveillance could reveal journalists' sources, expert claims:
Phil Zimmermann, inventor of PGP encryption, urges shift away from consumer email
Vice Admiral Is Suspended in Gambling Investigation:
A vice admiral who is second in command at the United States Strategic Command, which oversees nuclear war-fighting forces for the military, has been suspended amid an investigation into his possible involvement in illegal gambling, officials said on Saturday.
Senate set to reject Obamacare delay as government shutdown looms:
The move tosses a political hot potato back to Republican House Speaker John Boehner, leaving him a choice of whether to accept it and keep government agencies funded or try another move to rein in President Barack Obama's signature healthcare law.
If Republicans Want To Shut Down Washington, They'll Have To Ask China's Permission First:
In their never-say-die efforts to defeat Obamacare, Tea Party Republicans brought the federal government a giant step closer to shutdown last night. What they seem not to have considered is how America's foreign creditors will react.
China Looking To Reposition Renminbi As Global Currency:
China has already made its aim to establish the renminbi as a global currency, possibly even replacing the American dollar as the world's reserve currency.
House Republicans Target Contraception In Last-Minute Spending Bill:
Planned Parenthood Federation of America Executive Vice President Dawn Laguens called the move "desperate, misguided, and extreme" in a statement. "The country wants Congress to focus on jobs and the economy, not on pushing an extreme agenda against birth control," said Laguens.
Cancer-Stricken Angola 3 Prisoner Herman Wallace Given Just Days to Live After 42 Years in Solitary:
Wallace's supporters say he has just days to live, but his requests for compassionate release has so far gone unanswered.
Freed by DNA, Angola Prisoner Henry James on His 30 Years Behind Bars for Crime He Didn't Commit:
Louisiana, the heart of the world's prison capital, where more people are behind bars any other state per capita - an incarceration rate 13 times that of China.
NYC cost per inmate almost equals Ivy League education; Have you seen a whole lot of outcry on this?
Why doesn't anything happen?" Horn said of the $167,731 annual figure. "Because nobody cares."
Security footage shows six police kicking and beating a man before setting a dog on him: Video -
A man was left needing hospital treatment after police punched and kneed him, struck him with batons - and set a police dog on him that bit his neck and head.

"Let us be peace and joy"
Tom Feeley
Cost Of War
Number Of Iraqis Slaughtered In US War And Occupation Of Iraq "1,455,590"

Number of U.S. Military Personnel Sacrificed (Officially acknowledged) In America's War On Iraq:  4,883

Number Of  International Occupation Force Troops Slaughtered In Afghanistan :3,383
Cost of War in Iraq & Afghanistan
Total Cost of Wars Since 2001

Quick Links...
Contact Information
Phone:San Diego USA 619-407-7054