MIFiD II Delays…

Talk amongst many traders is that they are so unsure how the new rules and regulations surrounding the implementation of MIFiD II (Markets in Financial Instruments Directive) are to be imposed, that some even said they were keen to extend their holidays until this mess is sorted out. In other words, until they hear that regulators will grant firms a six-month delay for part of the changes about to be implemented for both the company and country, many just do not even know how to conduct business anymore.
The most critical problem surrounding this nightmare is the fact that every trade (with a European Counterpart) will require a LEI (Legal Entity Identifier). This is not such a critical issue for Wall Street Banks since they have already won a 30-month grace period after the SEC requested time to negotiate terms with the EU. Goldman Sachs has installed another of its board members as the top negotiator inside the SEC – Alan Cohen. Goldman Sachs has now three strategic people in the Trump Administration to steer the legislation in their favor both in the USA with restoring Glass Steagall to reduce their competition (Gary Cohen & Steven Mnuchin) and they have now added Alan Cohen, who was their Head of Global Compliance.

This post was published at Armstrong Economics on Dec 29, 2017.

Four Horsemen – The Cycles of an Empire Revealed

This documentary by the Renegade Economist reveals the cycles that all the empires of the world have followed and how they all eventually fail.  The current disparity between the very rich and the very poor is but one indication that today’s western empire, led by the U.S. is approaching its end.

Operation Twist II & Rent Seekers

Here’s Jim Rickards explaining the Fed’s intentions behind Operation Twist, expectations on future gold prices, and the logistics behind the Currency Wars of the economic world today. Also, with Jamie Dimon & JPMorgan filling the latest headlines, Rickards gives his take on the parasitic institution of Rent Seeking, which has invaded both parties – Republicans and Democrats. Rent Seekers have taken the form of:

  • On the Democratic side, Public Sector Unions, who are inflating their latter years’ pay in order to retire earlier with better benefits than those in the private sector.
  • On the Republican side, Wall Street Bankers like JPMorgan and Goldman Sachs have been profiting from their proprietary trading and derivative schemes, while at the same time ensuring losses are covered by the taxpayers.
  • On both sides of the isle, though Rickards doesn’t specifically mention them, there are the Crony CapitalistsSolyndra, Enron, Halliburton to name but a few examples. As we slip into the future, the Rent Seekers are even able to manipulate the legal system, making it tougher to actually prosecute the cronies that are caught in the act (see MF Global).

Things are getting bad out there, folks. If you’ve worked hard all your life and have accumulated wealth, please see our Protect Your Assets series to learn how you can protect your wealth from being destroyed by this rigged economic casino.

The Triumph of Crony Capitalism

David Stockman was the budget director under President Ronald Reagan. The Triumph of Crony Capitalism is the working title of Stockman’s new book due to be published soon.

Here’s Bill Moyer’s interview with Stockman where they discuss the corrupted relationship between investment bankers and those who hold public office. “We have neither Capitalism nor Democracy…. Instead we have Crony Capitalism.”

David Stockman on Crony Capitalism from BillMoyers.com on Vimeo.