Friday, 23 January 2015

Transpicuous News Report Wed Jan 21: Soon... 3 reports a week

Good morning everyone!  Sorry for the delay- there were technical issues with coding to be dealt with- but here is the recording of Wednesday Nights Transpicuous News Report, and of course all of the links of the news stories that I was following earlier this week.

To give you a schedule update:  At this point Transpicuous News will be broadcasting live stream on CCN and TONE every week at:

Sunday Nights at 9:00pm GMT

Wednesday Nights at 11:00 GMT

..... and we will most like begin a third weekly show on Friday nights .... I am working on confirming the timing right now.

If you miss the actual LIVE stream of the news reports, you can still watch it later on as the CCN Live Stream broadcasting acts as a "PVR".  Go to the Live stream  window and expand it to full screen.  At the bottom of the window is the Live stream cursor (just like at the bottom of a Youtube video window that shows your progress of the recording).  You can pull the "cursor" backwards to the time in the feed when Transpicuous News is going out, and can watch the feed from that point.  The "PVR" aspect is only available for that day, as each day the Live Stream is reset.

UPI twitter hack claiming WWIII
Donetsk bombing in ukrain jan 18
US preparing for future cyber warfare: Documents
NORAD training over washington DC this week
NORAD training over DC
Mali government declares country Ebola-free
Stateless man's citizenship application delayed by lack of paperwork
Iranian general, son of ex-Hezbollah leader, killed in Israeli airstrike in Syria
wall street 50 thousand jobs cut
Denmark defends peg
IMF warns greece
police radar can see inside your home
LIberia ebola centres empty
Canadian soldiers fire on ISIS
50 thousand fired on wall st
EU starts EQ!
Germany is pissed about QE- 2014
world economy is worse than we thought- IMF in Davos
Germany's Unpaid Debt to Greece: Economist Albrecht Ritschl on WWII Reparations That Never Were
MasterCard, Russia’s National Payment System Sign Agreement on Processing
1700 jets fly to davos to discuss global warming
50,000 gallons of oil spilled in Yellowstone River; residents told not to drink water
Ukraine Claims Russian Forces At Border, Attack Conflict Zone; Russia Replies "Complete Rubbish"
germany repatriates gold...... or not?
colorado police- after marijuana legalization everything is just fine
china swiss deal
Fire kills cyber security expert

US UFO files
Internet race in space
Davos Live Coverage:
Boehner invites Netanyahu to address Congress on Iran,
bank of canada stunner
nigeria currency crash
Yemen President held prisoner at house
Japan Foreign ministers equates Kuril isle with Ukraine
SNB fall out list

Thursday, 22 January 2015

ECBs Mirage to Recovery: Last desperate gasp of "Whatever it takes"

Well my friends, the European Central Bank just signed it's death certificate in the form of launching a 1.14 Trillion Euro Quantitative Easing printing press with their last gasp of "We will do whatever it takes" desperation.

Below are several articles that outline some of the most important aspects of this highly questionable, barely legal,  already-proven-not-to-work move, to try and generate at least a mirage of "recovery" to shimmer in front of the uneasy public of the European Union.

While this might look like a "European problem" to the general populous of North America, this action by the ECB will have global ramifications of epic proportions.  Hell.... even some of the fine print gives quite a large peak into what's next.

I will highlight several sections that I think everyone should taken note of.


ECB announces milestone €1.14tn ‘easy money’ program

Published time: January 22, 2015 13:43
Edited time: January 22, 2015 14:42

Reuters / Ralph Orlowski
Reuters / Ralph Orlowski

The European Central Bank announced it will embark on a fully-fledged quantitative easing program from March, which will break down to €60 billion per month. The move is made to counter a triple-dip recession in the eurozone.
ECB President Mario Draghi's press conference is live here
“Under this expanded program, the combined monthly purchases of public and private securities will amount to €60 billion, intended to be carried out to 2016,” Draghi said Thursday. The bank will buy €1.14tn ($1.3 trillion) in government debt, a decision that will inject extra money into supply, spurring a devaluation in the currency.
After the announcement, the euro fell 1.15 percent against the dollar, to $1.14.

The ECB Releases The Details Of Its Debt Monetization And Money Printing Program

Tyler Durden's picture

Those curious to learn why Greece is the only country excluded form the ECB' QE (for now) as the soon to be former Greek PM Samaras said moments ago...
... will not find any additional information in the ECB's supplement on its asset purchase program. Neither will they learn why something that is in effect monetary financing, and is prohibited by Article 123, is not monetary financing. However, they will learn that the proceeds from the ECB's money printing can be used "to buy other assets and extend credit to the real economy." The ECB adds that "In both cases, this contributes to an easing of financial conditions." Actually the only thing it will contribute to is making the world's billionaires into the world's trillionaires....

Here Are The Negatives In Today's ECB QE Announcement

Tyler Durden's picture

Everyone knows the positives, or rather positive, even if nobody at the ECB is willing to come out and say it: the ECB's QE - whose structural details were laid out previously - will boost stock prices, and... that's it. Who benefits as a result of this has now become a socioeconomic and philosophical discussion.
So here, courtesy of ADMISI's Marc Ostwald, are the negatives:
  • Risk sharing is very limited, with national central banks taking 80% of the risk on sovereign bond purchases, and rather un-reassuring was Draghi's comment that "most national central banks have adequate buffers to absorb a negative event" - most being how many.
  • Not good news for Greece, while it and Cyprus will be eligible for purchases of govt under a 'waiver' for (bail-out) 'programme countries', the ECB already has a very high volume of Greek bonds on it balance sheet from the SMP programme, and given a limit on total holdings for each sovereign issuer, it will not be eligible for purchases until it redeems debt in July asnd August. It should be added that other Italy and Spain and other bail-out countries will implicitly also have a lower available volume of total purchases, until SMP holdings are redeemed.
  • BUT perhaps the key aspect relates to the limits on the 25% limit on purchases of a single issue, which ensures that the ECB adheres to the ECJ's ruling about the ECB ensuring that is does not interfere with "price formation". So here's the key aspect, there are some $12.0 Trln of FX reserves in the world, of which roughly a quarter are held in Euros. Operating on the traditional metric that roughly half of those will be invested in Govt Bills and Bonds, this means that FX reserve managers will have to be involved in the process of establishing prices for whatever is purchased under the Govt bond QE programme. Eminently anything that is sold by central banks will not find its way into the private financial sector, therefore that EUR 60 Bln figure may often overstate what is being injected into the market.
  • Last but not least, the expanded programme does not start until March 15, so "Mr Market" now has a very long waiting period to sit on holdings of EUR debt before selling to the ECB, and with plenty of event risk in the world, starting with the Greek election, and to mention the prospect of an imminent Ukrainian default. Sort this under an uncomfortably long period before the QE 'party' gets started.

ECB To Print Trillion Euros – Gold Could Surge 40% In 15 Minutes Against Euro, Dollar

Mario Draghi is preparing to unveil QE today as the ECB looks certain to announce it’s much anticipated quantitative easing (QE) program. The move to print up to €1 trillion euros in the coming months appears to be a fait accompli although it will occur against a backdrop of strong German resistance and many concerns.
Following leaks that mainstream news sources regard as credible, the ECB is expected to announce monthly purchases of €50 billion in government bonds of member states.  The scheme is expected to run from March until the end of 2016 – for some 21 months – bringing the total to around 1 trillion euros. The ECB’s balance sheet currently stands at about €2 trillion.
Proponents argue that the move should or will prevent deflation and help revitalise the ailing euro zone economy.

It is hoped that QE will counter low euro zone inflation by increasing the amount of money available to financial institutions and to encourage lending by banks.....

Many have voiced concerns about the ECB QE including Angela Merkel, Axel Weber and Andrew Sentance.
Weber, the former head of the Bundesbank cast doubt on the future viability of the euro yesterday. He said that if countries do not follow Germany in imposing structural reforms to boost their longer-term growth rates the euro would not survive.
He called the probable introduction of quantitative easing by the ECB as “only part of the fix.” Weber, now the chairman of UBS, said there were legitimate questions hanging over the viability of the single currency.
Andrew Sentance, formerly of the Bank of England’s monetary policy committee, and now senior economic adviser to Price Waterhouse Coopers, said the euro zone is not the environment where QE is going to be effective.
UK economist Roger Bootle of Capital Economics told the BBC yesterday “I am not the greatest fan of quantitative easing – I don’t think it’s going to cure the European malaise. The point is, there is not much else in the locker.”
Angela Merkel continued to make Germany’s concerns known as late as yesterday indicating once again the lack of consensus among European policy makers. “The ECB hasn’t made any decisions yet,” she said at a press conference yesterday.
Germany’s greatest concern from Merkel’s point of view is that Germany does not end up on the hook for losses of defaulting peripheral nations.
Germans believe they should not have to underwrite weaker EU economies debts, via the printing of money by the ECB, while having no executive power over how those failed economies are structured.
“It’s important for me, as a politician, that all signals have to be avoided that could be perceived as weakening the necessity for structural changes and closer economic-political cooperation in euro zone countries.”
“That definitely has to be countered. We’ll have to wait and see about everything else,” she said.
A prospective compromise which is being widely reported is that the National Central Banks (NCBs), rather than the ECB, would purchase bonds and be responsible for any default.
Such a measure would encourage member states to press ahead with reforms rather than papering over their problems with free money in the expectation that defaults suffered by the ECB would be sustained by the stronger countries.
The ECB, like any central bank, has limited policy tools. In the wake of the crisis of 2008 the ECB reduced interest rates to zero in a failed attempt stimulate borrowing among populations saturated in debt.
It then engaged in confidence tricks – (the famous “whatever it takes” statement) – in the hope that confidence would make structural difficulties within the EU go away.
The last tool in a central banks arsenal is money printing and so the moment of truth for Mario Draghi has arrived.....

As such the money did not trickle down to the real economy and inflation did not take hold. The lesson will soon be learned that wealth cannot be generated by printing money – nor can sustainable economic growth.
Despite two waves of QE from the U.S. and Japan, deflation is taking hold globally. Oil, copper and lumber prices are stagnating indicating very weak economic activity worldwide....

Central bank prophet fears QE warfare pushing world financial system out of control

Former BIS chief economist warns that QE in Europe is doomed to failure and may draw the region into deeper difficulties







The economic prophet who foresaw the Lehman crisis with uncanny accuracy is even more worried about the world's financial system going into 2015.
Beggar-thy-neighbour devaluations are spreading to every region. All the major central banks are stoking asset bubbles deliberately to put off the day of reckoning. This time emerging markets have been drawn into the quagmire as well, corrupted by the leakage from quantitative easing (QE) in the West.
"We are in a world that is dangerously unanchored," said William White, the Swiss-based chairman of the OECD's Review Committee. "We're seeing true currency wars and everybody is doing it, and I have no idea where this is going to end."
Mr White is a former chief economist to the Bank for International Settlements - the bank of central banks - and currently an advisor to German Chancellor Angela Merkel.
He said the global elastic has been stretched even further than it was in 2008 on the eve of the Great Recession. The excesses have reached almost every corner of the globe, and combined public/private debt is 20pc of GDP higher today. "We are holding a tiger by the tail," he said.
He warned that QE in Europe is doomed to failure at this late stage and may instead draw the region into deeper difficulties. "Sovereign bond yields haven't been so low since the 'Black Plague': how much more bang can you get for your buck?" he told The Telegraph before the World Economic Forum in Davos.
"QE is not going to help at all. Europe has far greater reliance than the US on small and medium-sized companies (SMEs) and they get their money from banks, not from the bond market," he said.
"Even after the stress tests the banks are still in 'hunkering down mode'. They are not lending to small firms for a variety of reasons. The interest rate differential is still going up," he said.
The warnings come just as the European Central Bank prepares a blitz of bond purchases at a crucial meeting on Thursday. Most ECB-watchers expect QE of around €500bn now that the eurozone is already in deflation. Even the Bundesbank is struggling to come with fresh reasons to oppose it.
The psychological potency of this largesse will depend on whether the ECB opts for shock-and-awe concentration or trickles out the stimulus slowly. It also depends on the exact mechanism used to conduct QE, a loose term at best.
ECB president Mario Draghi hopes that bond purchases will push money out into the broader economy through a "wealth effect", but critics fear this will be worse than useless if it leads to an asset bubble without gaining traction on the real economy. Classic moneratists say the ECB may end up spinning its wheels should it merely try to expand the money base.
Mr White said QE is a disguised form of competitive devaluation. "The Japanese are now doing it as well but nobody can complain because the US started it," he said.
"There is a significant risk that this is going to end badly because the Bank of Japan is funding 40pc of all government spending. This could end in high inflation, perhaps even hyperinflation.
"The emerging markets got on the bandwagon by resisting upward pressure on their currencies and building up enormous foreign exchange reserves. The wrinkle this time is that corporations in these countries - especially in Asia and Latin America - have borrowed $6 trillion in US dollars, often through offshore centres. That is going to create a huge currency mismatch problem as US rates rise and the dollar goes back up."
Mr White's warnings are ominous. He acquired great authority in his long years at the BIS arguing that global central banks were falling into a trap by holding real rates too low in the 1990s, effectively stealing growth from the future through "intertemporal" effects.
He argues that this created a treacherous dynamic. The authorities kept having to push rates lower with the trough of each cycle, building up ever greater imbalances, in an ineluctable descent to the "zero bound", where monetary levers stop working properly.
Under his guidance, the BIS annual reports over the three years before the Lehman crisis were a rising crescendo of alarm calls at a time when other global watchdogs were asleep. His legendary report in June 2008 openly discussed whether the world was on the cusp of events that might prove as dangerous and intractable as the Great Depression, as it indeed it was.
Mr White said central banks have been put in an invidious position, compelled to respond to a deep economic disorder that is beyond their power. The latest victim is the Swiss National Bank, which was effectively crushed last week by greater global forces as it tried to repel safe-haven flows into the franc. The SNB was damned whatever it tried to do. "The only choice they had was to take a blow to the left cheek, or to the right cheek," he said.
He deplores the rush to QE as an "unthinking fashion". Those who argue that the US and the UK are growing faster than Europe because they carried out QE early are confusing "correlation with causality". The Anglo-Saxon pioneers have yet to pay the price. "It ain't over until the fat lady sings. There are serious side-effects building up and we don't know what will happen when they try to reverse what they have done."
The painful irony is that central banks may have brought about exactly what they most feared by trying to keep growth buoyant at all costs, he argues, and not allowing productivity gains to drive down prices gently as occurred in episodes of the 19th century. "They have created so much debt that they may have turned a good deflation into a bad deflation after all."

Wednesday, 21 January 2015

Transpicuous News Report LIVE stream tonight

Good evening everyone!  This is a quick post to let you know that I will be doing a Transpicuous News Report , LIVE stream Tonight, Wed January 21- at 11pm GMT.

Due the public demand, lol, I will now be doing at least two shows a week, live on CCN and TONE.... with a very good chance that that will be jumping to three shows a week very very soon.

So please tune in tonight on CCN, TONE or on Removing the Shackles for a report on all of the insanity that has happened in just the past three days!

Monday, 19 January 2015

Transpicuous News Jan 18, 2015:Swiss Conflagaration, Smoking Subways, and Invasion Manuals

Welcome to this weeks Transpicuous News Report on Sunday January 18, 2015

This week we witnessed several major events in the realms of finance and politics.  Some were reported by the main stream media, some were spin doctored by the talking heads, and some.... were conspicuously absent from the western medias news reports.  ALL of these events are world shaking and huge indicators of what is actually happening, not only in the global economic arena, but the the political realms as well.

News I have been following this past week:

RTS and Transpicuous News

U.S. Officials Claim Credit for Stopping Another Terror Attack Created by the FBI

How Markets Behave Right Before They Crash: A look at the news for the past 24 hours

Lithuania "Invasion Manual": Notice given

Silent Weapons for Quiet Wars: VITAL READING

US to buy Russian Rockets: The $30,000 Toilet Seat

Harlie Hebdo update

US Subway Fires: Notice was given

News Articles:
NASA Mars Scientist dies in plane crash  russia greece food ban lifted if they leave EU
ISS crew locks down inside Russian sector after cooling system glitch
"It's Carnage": Swiss Kill Hedgefunds .... more to come!
Target closing all 133 stores after whiffing on Canadian market
Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine
Russia to Shift Ukraine Gas Transit to Turkey as EU Cries Foul
Exclusive: Goldman writedown of Portugal loan hurts profit, bonuses
Switzerland Ambushes the Global Economy
Swiss mess could make oil plunge seem like minor hiccup
Swiss National Bank Shocks the World 
Sleepy Switzerland jolts currency markets
FRANCOGEDDON: SWITZERLAND’S SMI INDEX -13%. Major losses in EURCHF trades are causing panic selling and deleveraging across the board!
‘Global War I: geopolitical battle where oil is key’
Greek banks make requests for ELA funding
us to buy russina rockets
russian and pakistan
russian and venezuela
America Is Open for Business in Iraq (Psst ... Wanna Buy an M1 Tank?)
At Davos 2015 the Hottest Emerging Market is Spelled U-S-A
Antiterrorist operations in Belgium over — Foreign Minister.
russia monaco
belgium terror plot1
belgium anti terror bbc updates
belgium and german anti terrorist
Largest Retail FX Broker Stock Crashes 90% As Swiss Contagion Spreads
Deutsche, Interactive Brokers, Barclays Lost Hundreds Of Millions Due To Swiss Franc Volatility

Thursday, 15 January 2015

How Markets Behave Right Before They Crash: A look at the news for the past 24 hours

Let me give you a brief look into what has been happening in the world of finance for the past day or so.....


I highly recommend reviewing this article that I published just minutes ago:

"It's Carnage": Swiss Kill Hedgefunds .... more to come!

S&P Down 5% From Highs, Dow Drops Almost 700 Points In 27 Hours
9 Charts PROVE a Global Economic COLLAPSE is Almost Here!
Economic Death Spiral: More American Businesses Closing than Opening, Retail Sales Drop Most Since June 2012
The US Economy Is So Bad... Even Lottery Sales Are Collapsing
Target closing all 133 stores after whiffing on Canadian market
Bank Of America Misses Revenue By $2 Billion As Trading Revenue Collapses; Fires Thousands
 RadioShack Prepares Bankruptcy Filing
Caesars Files For Bankruptcy
 Market Wrap: "It's Turmoil" - Overnight Gains Wiped Out, Futures Trade Below 2000 On SNB "Shock And Awe"
Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine
Russia to Shift Ukraine Gas Transit to Turkey as EU Cries Foul
Exclusive: Goldman writedown of Portugal loan hurts profit, bonuses

And right on time, Michael Snyder gives an excellent run down of exactly where the "markets" sit right now.

This Is Exactly How Markets Behave Right Before They Crash

Roller Coaster - Photo by NeukolnWhen the stock market starts to behave like a roller coaster, that is a sign that a major move to the downside is right around the corner.  As I have stated repeatedly, when the market is very calm it tends to go up.  But when the waters start getting really choppy, that is a clear indication that stocks are about to plummet.  In early 2015, volatility has returned to Wall Street in a big way.  At one point on Tuesday, the Dow was up more than 300 points.  But then the bottom dropped out.  From the peak on Tuesday, the Dow plunged nearly 700 points in less than 30 hours before recovering more than 100 points at the end of the day.  The Dow has now experienced the longest losing streak that we have seen in 3 months, but that is not that big of a deal.  Of much greater concern is the huge price swings that we have been seeing. Remember, the three largest single day stock market increases in history were right in the middle of the financial crisis of 2008.  So if stocks go up 400 points tomorrow that is NOT a good sign.  What we really need is a string of days when stocks move less than 100 points in either direction.  If stocks keep making dramatic moves up and dramatic moves down, history tells us that it is only a matter of time before they collapse.  Any student of stock market history knows that what we are witnessing right now is exactly how markets behave right before they crash.
Examine the chart below very carefully.  It is a chart of the CBOE Volatility Index from 2006 to 2008.  As you can see, volatility was very low as stocks soared during 2006.  Then things started to get a bit choppy in 2007, and investors should have recognized this as a warning sign.  Finally, you can see that the VIX absolutely skyrocketed during the financial crisis of 2008…
VIX 2006 to 2008
Looking back, it seems so obvious.
So why aren’t more people alarmed this time around?
As CNN is reporting, the VIX is up almost 20 percent so far in 2015…
Volatility has returned with a vengeance this January. The Dow has been moving up or down by at least 100 points nearly every day this year.
CNNMoney’s Fear & Greed Index is showing signs of Extreme Fear again. And a volatility gauge known as the VIX, which is one of the components in our index, is up nearly 20% so far this year.
Meanwhile, there are lots of other signs of trouble on the horizon as well.
For example, the price of copper got absolutely hammered on Wednesday.  As I write this, it has fallen more than 5 percent and it has not been this low in more than five years.
In financial circles, it is referred to as “Dr. Copper” because it is such a valuable indicator regarding where the global economy is heading next.
For example, in 2008 the price of copper was close to $4.00 before plummeting to below $1.50 by the end of that year as the global financial system fell apart.
Now the price of copper is plunging again, and many analysts are becoming extremely concerned
One growing global worry is the steep decline in copper, which is used in many products and is often viewed as good gauge on how China is doing. The price of copper hit its lowest price since 2009 on Wednesday at $2.46. Copper is down nearly 7% this week alone.
Meanwhile, the recession (some call it a depression) in Europe continues to get even worse, and the euro continues to plunge.
On Wednesday, the euro declined to the lowest level that we have seen in nine years, and Goldman Sachs is now saying that the euro and the U.S. dollar could be at parity by the end of next year.
That is amazing considering the fact that it took $1.60 to get one euro back in July 2008.
Personally, I am fully convinced that Goldman Sachs is right on this one.  I believe that the euro is going to all-time lows that we have never seen before, and this is going to create massive problems for the eurozone.
With all of these signs of trouble out there, the smart money is rapidly pulling their money out of stocks and putting it into government bonds.  This usually happens when a crisis is looming.  It is called a “flight to safety”, and it pushes government bond yields down.
On Wednesday, the yield on 10 year U.S. Treasuries fell beneath the important 1.8 percent barrier.  We will probably see it go even lower in the months ahead.
As the rest of the world economy crumbles, the remainder of the globe is looking to America to be the rock in the storm.  For example, the following quote that I found today comes from a British news source
The global economy is running on a single engine… the American one,’ the World Bank’s chief economist, Kaushik Basu, said. ‘This does not make for a rosy outlook for the world.’
Well, they may not want to rely on us too much, because there are plenty of signs that our economy is slowing down too.  For example, we learned today that December retail sales were down 0.9% from a year ago, and this is being called “an unmitigated disaster“.  Americans were supposed to be taking the money that they were saving on gasoline and spending it, but that apparently is not happening.
Back on October 29th, I wrote an article entitled “From This Day Forward, We Will Watch How The Stock Market Performs Without The Fed’s Monetary Heroin“.  In that article, I warned that the end of quantitative easing could have dire consequences for the financial system as bubbles created by the Fed began to burst.
And that is precisely what is happening.  In fact, many analysts are now pinpointing the end of QE as the exact moment when our current troubles began.  For instance, check out this excerpt from a CNBC article that was published on Wednesday

Continue Reading HERE

"It's Carnage": Swiss Kill Hedgefunds .... more to come!

"It's Carnage" - Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed

Tyler Durden's picture

"As if millions of macro hedge funds suddenly cried out in terror and were suddenly silenced"
Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more.
What happened next was truly shock and awe as algo after algo saw their EURCHF 1.1999 stops hit, and moments thereafter the EURCHF pair crashed to less then 0.75, margining out virtually every single long EURCHF position, before finally rebounding to a level just above 1.00, which is where it was trading just before the SNB instituted the currency floor over three years ago.

The SNB press release:
Swiss National Bank discontinues minimum exchange rate and lowers interest rate to –0.75%

Target range moved further into negative territory

The Swiss National Bank (SNB) is discontinuing the minimum exchange rate of CHF 1.20 per euro. At the same time, it is lowering the interest rate on sight deposit account balances that exceed a given exemption threshold by 0.5 percentage points, to ?0.75%. It is moving the target range for the three-month Libor further into negative territory, to between –1.25% and -0.25%, from the current range of between -0.75% and 0.25%.

The minimum exchange rate was introduced during a period of exceptional overvaluation of the Swiss franc and an extremely high level of uncertainty on the financial markets. This exceptional and temporary measure protected the Swiss economy from serious harm. While the Swiss franc is still high, the overvaluation has decreased as a whole since the introduction of the minimum exchange rate. The economy was able to take advantage of this phase to adjust to the new situation.

Recently, divergences between the monetary policies of the major currency areas have increased significantly – a trend that is likely to become even more pronounced. The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar. In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified.

The SNB is lowering interest rates significantly to ensure that the discontinuation of the minimum exchange rate does not lead to an inappropriate tightening of monetary conditions. The SNB will continue to take account of the exchange rate situation in formulating its monetary policy in future. If necessary, it will therefore remain active in the foreign exchange market to influence monetary conditions.
The resultant move across all currency pairs has seen the EUR and USD sliding, the USDJPY crashing, and US futures tumbling even as European stocks plunged only to kneejerk higher as markets are in clear turmoil and nobody knows just what is going on right now.
In other asset classes, Treasury yields, understandably plunged across the entire world, and the entire Swiss bond curve lest of the 10 Year is now negative, with the On The Run itself threatening to go negative soon as can be seen on the table below:
Crude and other commodities, except gold, are also tumbling, as are most risk assets over concerns what today's epic margin call will mean when the closing bell arrives.
An immediate, and amusing, soundbite came from the CEO of Swatch Nick Hayek who said that "words fail me" at the SNB action: "Today's SNB action is a tsunami for the export industry and for tourism, and finally for the entire country." More from Reuters:

Continue Reading at Zerohedge HERE

Further Notes on the Swiss action that has sent the markets into a full fledged freak fit:

Switzerland Ambushes the Global Economy
Swiss mess could make oil plunge seem like minor hiccup
Swiss National Bank Shocks the World
Sleepy Switzerland jolts currency markets
FRANCOGEDDON: SWITZERLAND’S SMI INDEX -13%. Major losses in EURCHF trades are causing panic selling and deleveraging across the board!

Monday, 12 January 2015

Transpicuous News Jan 11, 2015: False Flags, Shipwrecks, and ISIS in Washington DC

Good morning everyone.

Last nights live stream of Transpicuous News was a long one as it took me a full hour to dissect all the latest happenings in the world.  We revisited the Air Asia incident and took a long hard look at the latest shipping crashes and groundings, made fun of several government officials and reviewed the latest information and disclosures on the French False Flag event.

Below are the links to the various news stories I have been following and links to the two latest Removing the Shackles articles that I publish yesterday- one outlining the dots I connected to Germany being the next European False flag event, and the other one showing screen shots of ISIS Mercenary groups Washington DC offices..... Stories that we will most certainly be watching very closely!

Transpicuous News will be Airing live on CCN and TONE every Sunday night at 9pmGMT.  If you miss the live stream, you can actually watch it later on that same day just by pulling the CCN live feed "cursor" back to the time of the show.  CCN has been set up so that every show is available, like a PVR, for that 24 hour period.  And as usual, I will post out the Youtube video of the show the next day.

RTS: Germany: The Next False Flag?

RTS: Who is ISIS, and Why do they have offices in Washington DC?

News links for the past week:!/news/weird/Mystery-Explosions-Rattle-Pennsylvania-Town/287509831