"Huge Shock": China Launches Crackdown On Cross-Border Stock Selling To Block Capital Outflows

China launched an unprecedented campaign against illegal cross-border trading to stem capital outflows, threatening severe penalties against brokers and ordering non-compliant accounts to be liquidated within two years, sparking a brutal selloff in three popular brokerages.

As Bloomberg reports, the pushback came after the onshore markets closed Friday when eight regulators issued a joint statement vowing a campaign against these trades, sending US-listed Chinese stocks tumbling.

The securities regulator said it planned to penalize brokerages Futu Holdings, Tiger Brokers and Long Bridge Securities for operating on the mainland without a license, and would confiscate all “illegal gains” from their domestic and overseas entities. Hong Kong’s markets regulator also announced measures on accounts for mainland Chinese investors.

Futu said regulators proposed about $271 million in fines, while Tiger Brokers owner Up Fintech Holding Ltd. said it was subject to a combined 411 million yuan ($60 million) in fines and confiscated income.

“Tiger has noted the relevant notice and will strictly comply with regulatory requirements and actively cooperate with the relevant process,” UP Fintech’s brokerage unit said in a statement, adding that all business operations remain normal. Futu also said it will co-operate with regulators and that business outside mainland China remains normal. China clients represent about 13% of total funded accounts, the firm said in a statement.

The penalty on Futu likely refers to revenue from mainland clients before 2022, Morgan Stanley said in a research note. That’s because Futu has largely stopped adding new mainland clients since then, and the requirement at that time was to ask brokers to continue serving existing clients, according to analyst Chiyao Huang. Separately, JPMorgan Chase & Co. cut Futu to neutral, with a price target of $87. 

The impact on the brokers’ shares was immediate: Up Fintech saw its ADRS sink 25% on Friday, while the US-listed shares of Futu tumbled 27%. The declines spread to other Chinese stocks, as the Nasdaq Golden Dragon China Index fell 1.9%

The joint plan, issued on Friday by the China Securities Regulatory Commission, the People’s Bank of China, the Ministry of Public Security and five other government bodies, aims to dismantle unauthorized offshore investment services that target mainland investors.

Officials said the measures are designed to clean up the capital market and steer investors toward regulated channels for overseas investment. An estimated $1.04 trillion of so-called hot money flowed out of the country in 2025, according to Bloomberg calculations - the biggest annual outflow since data began in 2006.

The moves amount to China’s most aggressive attempt yet to clamp down on its citizens finding ways to trade overseas markets, a long-running practice that is officially off-limits for a nation that imposes strict capital controls to defend its currency.

But as Bloomberg notes, the ramifications may be much wider than just the brokers targeted. Chinese companies’ global ambitions have led them to list in New York, London and particularly Hong Kong, and Chinese citizens have invested large sums as they follow their national champions overseas.

“This came as a huge shock that the plug would be pulled today,” said Chen Da, founder of Dante Research, adding that the biggest surprise was the push to close existing accounts within two years. “This is very bad news for Chinese ADRs and the Golden Dragon Index if people rush to liquidate all at once.”

The Hong Kong stock market’s strong performance has attracted a growing number of mainland investors to open overseas accounts illegally to trade there, increasing outflows and likely providing authorities a stronger incentive to stop such practices, said Allen Wang, a Shanghai-based partner at Jincheng Tongda & Neal Law Firm.

The shocking crackdown also coincides with Chinese tax authorities’ intensifying drive to get its citizens to pay taxes on offshore income, he noted. A number of clients have since last year been contacted by officials to pay taxes for gains including those from overseas stocks trading, with some having opened new accounts in Hong Kong after 2022, he added.

Under the new initiative, overseas institutions will be banned from marketing in China related to securities, futures and fund products. They will also be prohibited from offering account-opening services, executing trades or facilitating fund transfers for domestic clients.

The crackdown extends beyond foreign firms. Domestic entities that assist such operations, including intermediaries that solicit investors or companies providing website, trading software or customer support, will also be subject to enforcement action. Internet platforms and social media accounts publishing illegal promotional content are included. In addition to securities laws, violations involving foreign exchange controls, anti-money laundering rules, cybersecurity requirements and personal data protection will also be inspected.

Banks will face closer scrutiny as well. Institutions providing accounts for cross-border investment will be required to strengthen compliance checks on outbound foreign exchange transactions, as regulators move to curb illicit capital outflows, including those routed through underground banking networks.

The move comes around three years after local retail traders were cut off from accessing the apps of Futu and Up Fintech, an early sign that Beijing was growing impatient with cross-border flows. In 2023, the firms were forced to scrub their trading platforms from mainland app stores. That followed a late-2022 directive where regulators told Tiger and Futu to rectify “illegal” activities and stop taking on new onshore investors.

Tyler Durden Fri, 05/22/2026 - 11:25

'Mission Impossible' Begins: Watch Live As Kevin Warsh Is Sworn In As 17th Fed Chair

Kevin Warsh, who’s promised the biggest shakeup in decades at the US central bank, is set to be sworn into office this morning at 1100ET in a White House ceremony as the 17th chair of the Federal Reserve.

Warsh takes over at a tense moment for the economy and the central bank. Inflation has reaccelerated, driven by the impact of war in the Middle East on energy supplies. The Fed, meanwhile, has been battered by President Donald Trump for not cutting interest rates quickly enough.

That backdrop of persistent inflation and political pressure has stoked concern among investors and analysts that the Fed’s independence is under threat. In his confirmation hearing for the job, Warsh repeatedly pledged to act independently even as he criticized the central bank for what he called mission creep and its response to the pandemic inflation surge.

Warsh faces the highest 10Y yield of any Fed Chair being sworn in since Greenspan and a market that is priced dramatically more hawkishly than The Fed's 'dots' expected...

For those watching closely, the first sign of new management will likely be visible in the Fed’s communication about monetary policy.

The June 17 press conference could give us a first taste.

Warsh has promised less forward guidance, data dependence and near-term forecasting, and more dissent.

This would be a structural break from the Bernanke-Yellen-Powell years.

Warsh's swearing-in ceremony is due to start at 1100ET...

As James E Thorne wrote on X, Kevin Warsh’s arrival at the Federal Reserve is not a personnel change. It is a regime change attempt inside an institution built to prevent one.

A supply-sider now runs a central bank hard-wired for Keynesian demand management, and the machine is already resisting the new code.

The next mistake is visible in plain sight. Keynesians on Wall Street and inside the Fed are treating a supply shock as if it were a demand boom and calling for tighter money. This is dogma masquerading as seriousness. A chokepoint in the Strait of Hormuz, a jump in energy prices, and a cost shock rolling through transport, food, and manufacturing are not evidence of overheated demand. They are evidence of a damaged supply side.

Monetary policy cannot reopen a shipping lane. It cannot pump more oil. It cannot repeal geopolitics. It can only crush demand somewhere else, usually with a lag, and usually in the most interest-rate-sensitive corners of the economy first, housing, commercial real estate, capital spending, and durables. Those sectors did not close the Strait. They are simply first in line to pay for the Fed’s intellectual mistakes.

That is the Keynesian reflex in its purest form. Every price spike becomes “inflation.” Every inflation scare requires a rate move. Every rate move is advertised as proof of resolve. It is nonsense. A change in relative prices caused by a supply shock is not the same thing as an inflationary spiral. Pretending otherwise is how central banks turn an external shock into a domestic recession.

Machiavelli explained why change is so hard. The innovator makes enemies of everyone who did well under the old order and wins only lukewarm defenders among those who might benefit from the new. Christensen gave the same warning in corporate language. Incumbent institutions kill disruptive change because their processes, incentives, and prestige are built around the existing model. 

That is the real problem Warsh faces. The resistance is not incidental. It is structural.

The test for Warsh is not whether he can sound tough on television. It is whether he can resist the Wall Street catechism that every supply shock must be met with tighter money.

If he hikes rates into a supply-driven price spike to prove his anti-inflation credentials, he will not have broken with the Keynesian regime.

He will have submitted to it.

This is not the 1970s.

Expectations are not unanchored, and the productive economy is already scarred by years of policy excess, fiscal decadence, and institutional bias. 

The hope is that Warsh understands the difference between inflation and a supply shock, ignores the Keynesian pundits, and refuses to compound one policy error with another.

But as Ron Paul writes, Warsh faces an 'Impossible Mission' as Fed Chair as the markets greeted him with a worldwide spike in government bond yields.

Washington will read this as a problem of personnel, a question of whether the new man will cut rates fast enough to please the president who appointed him.

Ron Paul reads it as something older and more honest:

the predictable arithmetic of a state that has spent decades borrowing against the future, debasing its currency, and then waging wars it cannot pay for.

A new chairman changes none of that. The debt is still north of 39 trillion dollars, the dollar is still losing value faster than wages can keep up, and the printing press is still the only tool the warfare state has left.

What follows is Paul’s account of how the bill comes due, and why the people least responsible for running it up will be the ones handed the tab...

After Kevin Warsh was confirmed as Federal Reserve chairman last week, he received a stark reminder of the challenges facing the central bank. The reminder came in the form of a worldwide surge in the interest rates paid by government bonds. The surge followed the spike in oil prices caused by the Iran War.

The rise in bond yields comes along with the news that, according to government statistics (which are manipulated to understate the real rate of inflation), consumer prices increased by 3.8 percent over the past year while wages increased by 3.6 percent. This means that, even though many Americans received nominal wage increases, their real (adjusted for inflation) incomes fell.

The decline in real income is why more Americans are maxing out their credit cards or carrying large balances on cards. The high interest rates on those cards trap many Americans in debt burdens from which they are unable to escape.

President Trump’s “solution” to the economic problems facing many Americans is lower interest rates. Jerome Powell, who Warsh is succeeding as Fed chair, has refused to lower rates to the level desired by President Trump. This is a big part of why the president has said he chose not to reappoint Powell.

Concerns that Warsh would allow President Trump to dictate monetary policy help explain why only one Democratic Senator voted for Warsh’s confirmation.

Lowering rates may slightly reduce credit card and other interest rates paid by consumers. However, it will further erode the dollar’s value, thus further reducing Americans’ real incomes and causing them to go further into debt.

The Fed also faces pressure to lower rates in order to monetize the over 39 trillion dollars and rising federal debt. Before the Iran War, the Federal government was projected to spend 16 trillion dollars over the next ten years just on interest on the national debt. That amount has no doubt increased thanks to the billions spent waging an unconstitutional war against Iran.

The Iran War has harmed economies around the world and could result in a global debt crisis as the disruptions cause governments to default on their debt. The disruptions could also lead to new challenges to a basis of the dollar‘s world reserve currency status — the petrodollar system linking the dollar to oil.

After President Nixon severed the last link between the dollar and gold, then-Secretary of State Henry Kissinger brokered a deal with Saudi Arabia where the Saudis would use only dollars for the oil trade in exchange for American military support. In recent years, interest in challenging the petrodollar and the dollar’s world reserve currency status has grown. This is in large part because of opposition to the US government’s use of the dollar’s status to support the US government’s sanctions.

The end of the petrodollar and the dollar’s world reserve currency status will likely lead to major inflation as the Fed desperately pumps money into the economy to monetize ever increasing levels of federal debt. The good news is this could bring about the final collapse of the welfare-warfare state and the fiat money system that sustains it.

While the short-term results of this collapse will be painful, if those of us who know the truth are successful in convincing a critical mass of people to support free markets, limited government, and a noninterventionist foreign policy, the crisis will lead to a new age of peace, prosperity, and liberty.

*  *  *

The bottom line is that, as Rabobank concludes, Warsh is in a difficult position trying to convince the FOMC to cut rates as the White House prefers, while the economic data suggest the Committee could remain on hold or even hike.

If he lets the FOMC’s caution prevail, he could face criticism from the White House. Powell’s experience could serve as a stark reminder.

However, if Warsh pushes for policy rate cuts that go beyond what is seen as appropriate given the economic data, the bond market vigilantes will punish him with higher longer-term rates.

The FOMC may think monetary policy is still in a good place, but the new Chair will be between a rock and a hard place.

Good luck Mr.Warsh!

Tyler Durden Fri, 05/22/2026 - 10:50

UBS Warns Of "Scary" Oil Price Scenarios Once Inventory Buffers Run Dry

Drawing down crude inventories at a record pace, with SPR releases doing the heavy lifting to cushion the Gulf supply shock, only delays the move higher in crude oil prices. Once those buffers are depleted, oil risks being violently repriced higher.

That is why the Trump administration's race to secure a peace deal with Iran and reopen the Hormuz chokepoint has taken on new urgency in recent weeks. The longer the critical waterway remains disrupted, the greater the risk that the oil shock will escalate from a market event to a financial crisis, with higher crude prices feeding directly into inflation, consumer stress, and broader recession risk.

The message from the SPR crude data this week, the largest ever draw, is very clear: The Trump administration is buying time to get a deal done with Tehran. If Hormuz does not reopen soon, the market will eventually force demand destruction through much higher prices.

UBS analyst Arend Kapteyn penned a note Friday morning titled "When The Oil Buffers Run Out."

Kapteyn warned, "Oil prices can move much higher once inventories are depleted."

He continued:

This week saw the largest-ever drawdown in US oil inventories since records began in 1982: commercial inventories and the SPR combined fell by 17.8mb. These stock draws help explain why—despite nearly three months of supply shortfalls from the Middle East—oil is still trading "only" around $105/bbl.

Oil prices and volumes are linked by the price elasticity of demand. A simple relationship allows us to approximate price outcomes under different supply disruptions and degrees of demand destruction:

The oil team estimates that the net supply loss via the Strait of Hormuz is around 9mb/d after SPR releases, equivalent to a ~9% disruption.

At $105/bbl, this implies demand elasticity of roughly –0.2: a 1% increase in prices reduces demand by 0.2% (see chart). Without SPR releases, the supply shock would be closer to 12%, implying a price nearer $123/bbl.

There are two ways in which oil prices could increase much more:

• First, if inventories are depleted they can no longer buffer the supply shortfall.
• Second, as the "easy" adjustments in consumption and production are exhausted, demand becomes less responsive to higher prices.

The chart highlights some scary combinations.

For instance, if the global supply shortfall were 14% then even with the current demand elasticity, oil should be trading closer to $140/bbl. If the demand elasticity was 0.15 rather than 0.2, the implied oil price would be $208/bbl, and if the demand elasticity was 0.1 prices would approach $372/bbl.

Earlier this week, SPR data showed drawdowns continue to accelerate, with 9.92 million barrels - a record - drained last week. That means over 10% of the SPR has been depleted in just a few short weeks.

Total U.S. crude stocks, including the SPR, are at their lowest level since June 2025, with this week seeing the largest combined SPR and commercial stock drawdown in history.

Cushing stocks are rapidly approaching "tank bottoms" once again.

Reminder to readers: Global visible stock draws accelerated over the last week, bringing average May month-to-date visible stock draws to a record 8.7mb/d.

Earlier, Rapidan Energy Group analysts warned that a prolonged closure of the Hormuz chokepoint risks pushing the economy into a downturn on a scale approaching that of the 2008 Great Recession.

The clock is ticking for the US to secure a deal with Tehran to reopen the critical waterway and avert a further energy shock that would complicate the Trump team's midterm election odds.

Professional subscribers can read further commentary on the Gulf energy crisis-related mayhem at our new Marketdesk.ai portal.

Tyler Durden Fri, 05/22/2026 - 10:35

Viral Video Reveals Extent Of LA's Homeless Hell

Authored by Steve Watson via Modernity.news,

A shocking video making the rounds shows the reality of life under Los Angeles bridges: a sprawling setup of makeshift homes complete with lighting tapped into the city power grid, tables of items, and a self-contained community living off public resources.

The clip, originally from local documentarian @whitewallstuntz, captures a resident proudly displaying his space. "This how people living out here in LA man. My boy got the whole bridge to himself."

The footage reveals lighting strung throughout, suggesting direct access to grid electricity, alongside what appears to be a network of living areas.

The homeless are now living under the city of Los Angeles

There is basically a small city of homeless under this part of LA

It's a vast network of makeshift homes and even looks like there are tables setup full of likely drug paraphernalia

It has lighting throughout so they've... pic.twitter.com/9lJFttFnp2

- Wall Street Apes (@WallStreetApes) May 20, 2026

The post continues, "These people are living down here for free, getting energy for free, guaranteed they all have EBT cards and free health insurance. It's like a self contained city 100% paid for by taxpayers. This screams 3rd world country but it's in Los Angeles, California. One of the most expensive, once iconic places on earth."

California's homelessness crisis has reached this scale despite enormous spending. The state poured roughly $24 billion into programs between 2019 and 2024, with totals climbing toward $37 billion when including later allocations.

Yet the problem persists, with over 187,000 people experiencing homelessness statewide as of recent counts. Los Angeles County alone accounts for tens of thousands of that total.

Democrat-led policies in Sacramento and LA have funneled massive sums into the system with little measurable success in reducing street homelessness long-term. Audits have repeatedly flagged poor tracking of outcomes, leaving taxpayers wondering where the money actually went while scenes like this underground network expand.

A related clip, which is actually over three years old, drives home the incentive problem. In it, a man who moved to San Francisco explains: "If you're gonna be homeless, it's pretty f*cking easy here. I mean, if we're gonna be realistic, they pay you to be homeless here."

When asked to clarify he responds "$200 food stamps and $620 bucks cash a month - it's free money, dude. This right now is literally by choice. Literally by choice. Like, why would I want to pay rent? I'm not doing. I got a cell phone that I have Amazon Prime and Netflix on."

EXPOSED ? California Democrats are paying people to be homeless

Homeless man moved across country to California to be homeless

"How long you been in San Francisco?"

Homeless man "Since June. If you're gonna be homeless, it's pretty f*cking easy here. I mean, if we're gonna be... pic.twitter.com/X7j9ut09pm

- Wall Street Apes (@WallStreetApes) May 20, 2026

This dynamic fuels what many call the 'Homeless Industrial Complex'.

Joe Rogan has repeatedly highlighted the issue on his show, slamming the waste and lack of accountability. In one discussion, Rogan questioned pouring billions more into the problem with no results, pointing to high salaries for those managing programs while conditions on the streets worsen.

Rogan and guests like Michael Shellenberger have exposed how the system creates incentives to maintain rather than solve the crisis.

While California's Democrat strongholds descend ever deeper into third-world conditions, Washington D.C. offers a striking contrast. Under President Trump's direct intervention, the nation's capital has seen aggressive encampment clearances, restored historic parks and fountains, and visibly cleaner public spaces - with families and even blue-haired locals now reclaiming areas once overrun by vagrants and decay.

This proves decline is a choice. Where endless taxpayer billions and soft policies create underground cities in LA and San Francisco, decisive enforcement and accountability are already making America's capital livable again.

California Democrats have controlled the levers of power for years, promising compassion while delivering third-world visuals in one of America's wealthiest states. Billions spent, power grids tapped for free, EBT and services flowing - yet the encampments multiply and iconic cities decay.

America First priorities like accountability, enforcement against open drug use, and real pathways to self-sufficiency offer a stark contrast. Taxpayers deserve better than funding underground cities while surface-level failures mount.

Tyler Durden Fri, 05/22/2026 - 10:15

As Stocks Hit Record Highs, Americans' Consumer Confidence Collapses To Record Low

With the "mini war" still ongoing (albeit with a 'ceasefire' in place), expectations were for UMich consumer sentiment to continue languishing at record lows in final May data released this morning.

And it did, with the headline sentiment - along with both Current Conditions and Expectations - all plunging to record lows...

Source: Bloomberg

Yep... Americans have never been more miserable... Black Friday, meh; 9/11, nothingburger; GFC, fleshwound...

“The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50% last month,’’ Joanne Hsu, director of the survey, said in a statement.

So far, consumer spending has proved resilient as the job market holds up and a stock-market rally bolsters wealth.

“Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run,” Hsu said.

Consumers expect prices to rise an annualized 3.9% over the next five to 10 years, up from 3.5% in April and the highest in seven months. They also saw costs advancing 4.8% over the next year.

This month’s increase in long-run expectations reflects sizable jumps among independents and Republicans.

For the latter group, long-run inflation expectations are currently more than double their February 2025 reading on a monthly basis.

Republicans' confidence overall is starting to fade...

Finally, here's the k-shaped economy writ large...

Stocks at record highs (thanks to AI CapEx dreams) while sentiment at record lows (thanks to inflationary pressures on low income consumers - among other things)...

This divergence is ultimately unsustainable.

Tyler Durden Fri, 05/22/2026 - 10:09

The post Charles (a.k.a. “The Leaker”) Littlejohn: American Hero appeared first on CEPR.

Hope And Reality

By Teeuwe Mevissen, Senior Macro Strategist at Rabobank

Since the start of the Iran war the market has had a tendency to view the likelihood of a peace agreement with a ‘glass half full’ attitude.

Once again, markets have found some comfort in encouraging remarks from both the US and Iran, even though both sides are making it clear that there are still major sticking points on critical issues.

US Secretary of State Rubio has suggested that there are “some goods signs” towards finding a resolution. This is despite Iran’s Supreme leader ordering that the country’s enriched uranium must not be sent abroad, which is a key objective of both the US and Israel. Rubio has also stated that any deal that involved Iran imposing tolls on shipping passing through the Strait of Hormuz would be unacceptable. This statement comes on the heels of this week’s news that Iran is looking to set up a new “Persian Gulf Strait Authority” to exert control over a maritime zone in the area and that the country’s authorities are also discussing with Oman how to set up a permanent toll system. Amid the confusion over the degree of progress towards peace, Brent crude prices have ticked higher this morning, though they remain in the lower part of this week’s range.

Reflecting movements in oil prices, US treasury yields are also trading in the lower part of this week’s range, though they remain at elevated levels. While asset prices continue to take their cue from speculation regarding the length of time that the Strait of Hormuz may be closed, economic data are increasingly reflecting the impact that the supply shock is already having.

Yesterday’s release of French preliminary May PMI data showed a plunge in the composite number to 43.5 from 47.6 the previous month, with weakness evident in both the manufacturing and the services sectors. The composite number, which is a 66-month low, would usually be associated with recession.

According to S&P Global, firms cited higher fuel and energy costs as reasons for lower output, with manufacturing firms citing material shortages.

The German PMI data was less of a shock but with a composite number reading 48.6, the economy is continuing to show signs of contraction. While this morning’s German IFO release was a little better than expected, it remains close to a 5-year low.

Yesterday’s release of the spring forecasts from the European Commission reflected the growing pessimism regarding the economic toll of the Iran war. GDP growth in the EU is now projected to slow to 1.1% in 2026, a downward revision of 0.3 ppts from the autumn forecasting round.

Growth for the Eurozone this year is now projected to be just 0.9%, while price pressures have been revised higher. The EC’s forecast for inflation in the EU has been revised a full percentage point higher to 3.1% in 2026. The forecast for the Eurozone stands at 3% this year up from an autumn forecast of 1.9%.

The data highlight the conundrum for the ECB. Price pressures are of clear concern, but weak activity data question whether the ECB needs to hike rates as much as markets have been expecting to rein back demand in the face of the supply shock. This morning the market is priced for a little more than two 25 bps ECB rate hikes on a 6-month view. Rabobank has pencilled in just one for now.

How weakening economic activity will impact central bank decisions has been a theme in many parts of the G10 this week. The releases of softer than expected UK and Australian labor data earlier in the week had a noticeable impact on rate hike expectations in their respective markets. Weak UK retail sales data this morning have further shone the spotlight on growth risks.

Cost of living pressures have been highlighted by UK voters as a primary concern and PM Starmer’s leadership continues to hang by a shoestring. In an effort to grapple back some control, the (current) Labour party leadership have this week announced steps to ease pressure on household budgets. This includes extending a freeze on fuel duty, cutting VAT on some hospitality services over the summer, and granting a 12-month road tax holiday for hauliers.

The package of measures will be funded by bringing forward changes to how oil and gas companies are taxed on overseas earnings. UK Chancellor Reeves’ adherence to her fiscal rules have won her some credibility in the gilts markets. Concerns that a leadership challenge would result in a swing to the left of the party and bring more spending pledges have unsettled the gilts market this month, though comments earlier in the weeks from Manchester Mayor Burnham that he would maintain the fiscal rules if he led the country have provided some reassurance.

Burnham may be the bookies’ favorite for the next leader of the UK’s Labour party, but he must win a seat in parliament before announcing a challenge. The most likely date for the Makerfield by-election is June 28. Reform will be fighting hard to win that seat ahead of Burham.

Tyler Durden Fri, 05/22/2026 - 09:45

Trump Sending 5,000 Additional Troops To Poland, After Same Number Reduced From Germany

President Trump announced in a post on Truth Social late Thursday that he will send 5,000 additional troops to Poland, which has raised a lot of questions and introduced some level of confusion, given this is precisely the same number of troops the Pentagon has announced it plans to pull out of Germany.

"Based on the successful Election of the now President of Poland, Karol Nawrocki, who I was proud to Endorse, and our relationship with him, I am pleased to announce that the United States will be sending an additional 5,000 Troops to Poland," Trump wrote.

Weeks ago, the White House began threatening a significant and historic force reduction from Germany, following Berlin officials' repeat criticisms of the US-Israeli war against Iran. This was initially presented in media reports as part of a broader drawdown from Europe, but now it appears US forces are just being shifted around, and with 5,000 to be placed closer to Russia.

All of this was first reported and confirmed by Punchbowl News' Briana Reilly, citing the words of House Armed Services Committee Chairman Rep. Mike Rogers (R-AL)...

HASC Chair Rogers said the 5k troops will be moved from Germany to Poland. This is separate from the delayed deployment of the Texas-based Army brigade. https://t.co/LTLsgSrDAe

— Briana Reilly (@briana_reilly) May 21, 2026

Rogers indicated that the 5,000 new troops for Poland will be in addition to the delayed deployment of 4,000 US Army soldiers to Poland.

As it stands, reports from a week ago suggest that the 4,000 has been paused or even canceled, with Pentagon commanders cited in media reports saying they were "blindsided" by the decision.

Some of this surprise and frustration was echoed in public, with Lt. Gen. Ben Hodges, the former commander of the U.S. Army in Europe, stating that the Army’s role in Europe "is all about deterring the Russians, protecting America’s strategic interests and assuring allies."

But it remains that "now a very important asset that was coming to be part of that deterrence is gone." He added: "The Poles certainly have never criticized President Trump, and they do all the things that good allies are supposed to do. And yet, this happens."

Trump's announcement that he's sending a separate contingency of 5,000 to Poland could be an effort to smooth over Pentagon fears, while keeping European allies happy, and seeking to demonstrate the US is not 'backing down' from Russia. 

Germany itself can't complain too loudly either, given it too has long been worried about Russia, and now more US forces are en route to NATO's 'eastern flank'. This move might have even been long in planning, with Washington trying to spin everything in terms of punishment and reward actions.

Tyler Durden Fri, 05/22/2026 - 09:15

Great Again: Blue-Haired Liberals Seen Enjoying Beautifully Restored DC Park Fountain

Authored by Steve Watson via modernity.news

Decline is a choice

Just weeks ago, Meridian Hill Park - also known as Malcolm X Park - stood as a graffiti-scarred reminder of neglect, overrun by vagrants, trash, and decay. Today, its iconic 13-basin cascading fountain flows powerfully once more, drawing families, dog walkers, and even those with blue hair who once might have sneered at such efforts.

The transformation is undeniable: clean pathways, flowing water, and people reclaiming public space in the heart of Washington, D.C.

It's the direct result of President Trump's determination to restore the nation's capital ahead of America's 250th anniversary. As one viral video captured, locals are visibly enjoying the revived park where needles and encampments once dominated.

You're listening to the sound of the Nation's Capital coming back to life. ??

Decline is a choice. @POTUS is choosing action, beauty, strength, and pride. pic.twitter.com/CsiVSLdJuJ

- US Department of the Interior (@Interior) May 20, 2026

President Trump has been clear about his personal investment in these projects. In a statement shared widely, he detailed the progress:

"So far, over 20 have been revitalized, and fixed, looking better than the day they were built, many years ago. We have some left, some were in very bad and difficult condition, but we will get them all done in a short time. D.C. is being reawakened as to its Beauty, Elegance, and Charm."

He continued on the grand prize:

"The "Granddaddy" of them all will be The Reflecting Pool - 2,500 feet long, and almost 200 feet wide, the biggest such structure ever built, but also, the most troublesome for many Administrations in that, from the time it was built in 1922, it essentially never really worked! It leaked from all angles, drew dirt, grime, and decay, was often filled with garbage, and wasn't at all representative of the two Great Monuments it connects - The Lincoln Memorial, and the Washington Monument."

? NOW: Liberals are LOSING THEIR MINDS after President Trump posted how beautiful the new USA flag blue Lincoln Memorial Reflecting Pool will look

They hate nice things - and preferred he let the algae and goose poop sit in the pool!

Trump nailed it: "Why would I bother taking… pic.twitter.com/NwJVVrG6PE

- Eric Daugherty (@EricLDaugh) May 10, 2026

"I, together with Doug Burgum and the Department of Interior, am fixing it the right and proper way - It will last for many decades into the future," Trump added.

? JUST NOW: President Trump infuriates the Democrats by announcing he PERSONALLY made contributions to beautify DC, and dozens of fountains are starting to work again

BUILDER-IN-CHIEF.

The Reflecting Pool will be the biggest water project of them all ??

"So far, over 20 have… pic.twitter.com/UDUgdf8qpn

- Eric Daugherty (@EricLDaugh) May 20, 2026

Trump further stated, "The Fountains are now working, and look magnificent as the Park is being entirely rebuilt, using far better and more beautiful materials than originally used. As the Entrance to the White House, it's got to be spectacular - There is no other way! Again, check out what's going on at Lafayette Park."

The historic cascading fountain at Meridian Hill Park in D.C. is flowing after a decade of disrepair and decay - all thanks to President Trump's relentless effort to make our nation's capital beautiful again.

REMEMBER - DECLINE IS A CHOICE! pic.twitter.com/IHLZt0rU4z

- Rapid Response 47 (@RapidResponse47) May 19, 2026

The fountain revival aligns with Trump's revived executive order promoting classical architecture for federal buildings - an order Biden scrapped in 2021 but Trump reinstated to prioritize beauty, tradition, and civic pride over modernist ugliness.

Meridian Hill Park before vs. after.

For years, homeless camps and drug addicts took over the park.

Now it's cleaned up and full of families again, thanks to @POTUS's executive order to make the capital safe and beautiful again. ?? https://t.co/CLsrqwSOkW pic.twitter.com/MSrIsuyWvm

- Trump War Room (@TrumpWarRoom) May 18, 2026

Meridian Hill Park's cascading fountain, one of North America's longest, had been dry for years. Now it cascades with renewed vigor, part of a $54 million initiative restoring seven major D.C. fountains.

The Lincoln Memorial Reflecting Pool - long plagued by leaks and grime - is undergoing a major overhaul with upgraded materials and a striking "American flag blue" finish for enhanced reflection and durability.

As Trump noted, Lafayette Park, right at the White House entrance, is also being fully rebuilt with superior materials. Additional fountains and public spaces across D.C. are in the pipeline, all timed for the 250th celebrations.

The most striking images show everyday Americans - including those who might not vote Trump - relaxing by the flowing water. Blue Haired liberals were even spotted enjoying the surroundings.

Blue Haired liberals in Washington DC are THANKING Trump.

This is Meridian Park, just North of the White House.

Beautiful. Clean. Safe.

Turns out people like living in a city that isn't a drug-ridden, lawless war zone. pic.twitter.com/rcDJt7hgqF

- Benny Johnson (@bennyjohnson) May 20, 2026

Crime in D.C. is dropping, encampments are cleared, and families are returning. Beauty and order draw people in; neglect repels them. Trump's approach proves that enforcing basic standards and investing in public spaces benefits everyone, regardless of politics.

Leftist critics can fume about "wasted" money or "gentrification," but the footage tells the truth: people love safe, clean, beautiful spaces. They always have. Decades of Democrat-led decay turned the capital into a embarrassment. Trump is reversing it.

The fountains are flowing, the parks are alive, and the capital is reawakening.

Tyler Durden Fri, 05/22/2026 - 08:55

Regulators Circle StanChart After CEO's AI Layoff Comments Spark Uproar

It has been a tumultuous week for Standard Chartered CEO Bill Winters.

Winters appeared out of touch with the growing anxiety surrounding mounting white-collar AI-related job losses. He described the bank's AI adoption push as "not cost-cutting," but rather as "replacing lower-value human capital with financial and investment capital."

Such language ignited a firestorm for the CEO and the bank, and by the end of the week, regulatory scrutiny had descended on the firm.

Reuters reports that authorities in Hong Kong and Singapore have pressed the bank for clarity on Winters' comments and the scope of upcoming AI-related layoffs.

On Tuesday, StanChart began labor restructuring to cut 15% of its corporate roles (about 7,800 jobs) by 2030 as part of a broader efficiency push amid the adoption of AI.

Hong Kong authorities asked StanChart whether AI was being used as a pretext to reduce headcount.

By midweek, Winters scrambled into damage control following the "lower-value human capital" remarks. Early today, he apologized for his "choice of words" in a LinkedIn post.

"For that, I am sorry. I am therefore showing below a verbatim transcript of what I actually said, which I hope allows for a better understanding of the important point I was raising..."

Here's the transcript:"

“For example, this new core banking system in Hong Kong, which is a major, major accomplishment. This is not an everyday thing. It happens once in 40 years. And when it goes wrong, it's a disaster. It did not; it was practically perfect. That was a two and a half year programme, to get that right. The people that were gonna be affected, who were very important for helping us get to the right answer, knew that they were gonna be affected, and we began reskilling them at the earliest possibility. We're not long on talent in the markets where we operate, because these markets are growing fast. So the people that want to reskill, that want to carry on, we're giving every opportunity to reposition. And the people that say, yeah, you know, I've done my bit, I'm ready to do something else. I take a package at the end of the application migration. So this isn't, it's not cost cutting. It's replacing, in some cases, lower-value human capital with the financial and investment capital we're putting in. But almost always, with good clear notice going forward."

Beyond StanChart, corporate America is firing engineers and other white-collar workers as AI adoption accelerates. This era will likely be remembered as the great "white-collar purge," and the response may be continued backlash toward data centers.

Meta Platforms began firing 8,000 workers earlier this week, while leaked audio of CEO Mark Zuckerberg described how AI is monitoring highly skilled employees. According to X user Official Layoff, who leaked the audio: "AI is replacing the contractor. Then the employee trains the AI. Then the AI replaces the employee."

Take a look at Bloomberg story count data for "ChatGPT" and "layoffs" ...

Labor-market disruption for white-collar workers has arrived with the rise of AI adoption. In 2023, Goldman detailed just how many jobs AI may eliminate. That number is absolutely alarming.

Tyler Durden Fri, 05/22/2026 - 08:35

US Stock Futures Rise, Set For 8th Consecutive Week Of Gains

US equity futures are higher into the long weekend, with the S&P 500 gaining for an 8th consecutive week higher, its longest streak of weekly wins since 2023 with sustained momentum in popular thematics, thanks to a liquidity boost, supportive macro readings, solid earnings and hopes that the US and Iran are moving closer to a peace deal, not to mention unrelenting enthusiasm for artificial intelligence which is fueling a historic gamma squeeze.

As of 7:30am ET, S&P futures are 0.2% higher, cutting overnight gains of 0.5% by more than half,  and Nasdaq future gain 0.1% with most Mag 7 banes higher pre market led by GOOG/L (+0.4%) and NVDA (+0.3%). Bond yields are 1-2bp lower led by the belly of the curve; the 10-year yield is down two basis points to 4.55%; the softer-than-expected Japan CPI drove 30Y JGB yield 3.6bp lower (now back below 4%), which supported global bond markets. The USD is higher, while commodities are mixed: WTI crude added $2.10 to $98.50 this morning; precious metals are lower; Brent rebounded 2.6% to above $105 a barrel, but remained lower for the week. Ags are higher. Economic data slate includes May final University of Michigan sentiment (10am) and Kansas City Fed services activity (11am). Fed speaker slate includes only Waller at 10am

In premarket trading, Mag 7 stocks are mixed (Alphabet +0.06%, Nvidia +0.2%, Apple +0.07%, Tesla +0.05, Amazon -0.2%, Microsoft +0.1%, Meta -0.2%)

• US-listed Chinese stocks decline after China’s securities regulator announced plans to penalize three cross-border brokerages, adding to investor concerns around Beijing’s stance toward internet firms. Among large-cap Chinese internet firms, Alibaba (BABA) -4% and Baidu (BIDU) -3%.
• Booz Allen Hamilton (BAH) rises 5% after the defense contractor forecast adjusted Ebitda for 2027 that beat the average analyst estimate.
• Deckers Outdoor (DECK) gains 2% after the parent company of both Ugg and Hoka reported revenue for the fourth quarter that beat the average analyst estimate.
• Estee Lauder Cos. (EL) climbs 10% after the collapse of a proposed combination with Puig Brands SA that would have created one of the world’s largest fragrance and skincare companies.
• IBM (IBM) rises 2%, GlobalFoundries (GFS) gains 3% and smaller quantum computing firms climb, putting them on track to build on Thursday’s rally that came after the US government awarded $2 billion to IBM and several other companies as part of an investment push to develop quantum wafer facilities.
• IMAX Corp. (IMAX) gains 15% after the Wall Street Journal reported the large-screen theater company is exploring a sale and has approached entertainment companies as potential buyers.
• Ross Stores (ROST) rises 4% after the off-price retailer boosted its comparable sales forecast for the full year.
• Sweetgreen (SG) gains 6% after JPMorgan raised its recommendation on the restaurant chain to overweight from neutral on new products and an improving balance sheet.
• Take-Two Interactive Software (TTWO) rises 2% after the video-game company reported fourth-quarter results that beat expectations and confirmed a Nov. 19 release date for Grand Theft Auto VI.
• Workday (WDAY) jumps 7% after the software company reported first-quarter results that beat expectations and gave an outlook that is seen as positive.
• Zoom Communications (ZM) rises 7% after the company raised its full-year forecast for both adjusted earnings and revenue. It also reported first-quarter results that beat expectations.

In other news, SpaceX delayed a critical test of its massive Starship rocket just seconds before launch after a pin holding the tower arm in place failed to retract. Polymarket has appointed a representative in Japan and is preparing to lobby for the authorization of prediction markets in the country.

Markets are heading into the weekend on a quieter note, shaking off worries that severe disruptions to energy flows from the Middle East could stoke inflation. Signs that neither Iran nor the US is looking to widen their conflict and growing appetite for a broader group of AI beneficiaries have kept volatility subdued despite conflicting reports around peace talks. A drop in the VIX to the lowest since early February is helping the mood, as are some chunky numbers on announced corporate equity purchases. These have already exceeded $1 trillion for 2026 across new stock buybacks and cash takeovers, according to EPFR data.  

Those looking for signs of economic resilience can point to the “US exceptionalism” that strategists at Evercore ISI saw in Thursday’s S&P PMI data. They lauded the contributions from domestic energy production, AI capex and wealth creation. Exceptional, too, is the performance by tech and AI since the start of the Iran War. A basket of stocks exposed to the Anthropic AI ecosystem has surged 56% since the start of March while the equal-weighted S&P 500 is flat. 

On the subject of AI, Bloomberg notes that talks between the EU and Anthropic over testing banks and companies for digital vulnerabilities have stalled. Lenovo jumped to 26-year highs in Hong Kong trading after AI-related sales surged 84% year-on-year. DeepSeek’s senior management is said to have told potential investors in its ongoing 70 billion yuan ($10 billion) funding round that the startup will prioritize groundbreaking AI research over short-term commercialization. 

“We’ve got the biggest capital spending boom since the financial crisis,” said Guy Miller, chief market strategist at Zurich Insurance.“That’s leading to record corporate profitability; we are in this virtuous circle where it’s generating profitability for other suppliers, other companies too.”

“The market is fully aware that headlines will remain volatile, and while oil needs to react for practical reasons, equities have probably moved on,” said Geoff Yu, senior macro strategist at BNY. “The lack of an agreement does not imply re-escalation, so the focus for now will stay with earnings and data.”

In politics, Alberta’s Premier said she’ll call a referendum on whether the energy-rich province should stay in Canada or start a legal process that could eventually lead to its independence. China imposed new export controls on some key chemical ingredients shipped to the US, Mexico and Canada, in a further sign of cooperation with Washington on curbing drug trafficking.

Away from stocks, treasuries gain for a third straight day after yields earlier this week tested multiyear highs. Investors said US authorities remain highly attentive to borrowing costs and that current levels will sharpen the White House’s resolve to find a resolution in the Middle East.

“The administration is well-focused on the bond market, even more than equities in my view, so they won’t allow the curve to steepen much further,” said Andrea Gabellone, head of global equities at KBC Securities.

In Europe, the Stoxx 600 rose for a fifth straight day, climbing 0.5% as the region’s semiconductor-linked stocks such as ST Microelectronics, ASML Holding and Infineon led gains.Here are the biggest movers Friday:

• Deutsche Post shares gain as much as 4.5% after being upgraded at Deutsche Bank, with analysts calling an end to the earnings downgrade cycle and saying recent fears over AI disruption and competition are overdone
• Softcat shares rise as much as 12%, hitting a six-month high, after the IT services firm lifted its annual underlying operating profit guidance. Analysts said a pull-forward in orders helped and expect consensus estimates to increase
• Brembo shares jump as much as 9.3% after the breaking systems maker announced the creation of a joint venture with Ningbo Huaxiang in China
• Games Workshop shares rise as much as 3.6% after the Warhammer owner said it expects full-year core revenue and pretax profit to be higher than the previous year
• Siemens Healthineers shares climb as much as 1.5% as Barclays analysts note the German medical equipment maker’s upbeat commentary on inflation at its European Leadership conference this week
• Puig shares slide as much as 15% at open, the most on record since its 2024 IPO, after the Spanish beauty firm’s merger talks with Estee Lauder collapsed
• Julius Baer shares dropped 10% following earnings update that analysts say was disappointing, with weak inflows. Shares had gained 9% YTD through Thursday
• Genuit Group shares drop as much as 6.1% after the developer of plastic piping systems warned its annual underlying operating profit will be toward the lower end of analyst expectations
• Amplifon drops as much as 3% after the Italian company sold shares to fund its acquisition of GN Store Nord’s hearing-aid business, announced in March
• Alerion Clean Power shares drop as much as 11% after the Italian renewable energy company’s board approved a €135.6 million capital increase, excluding pre-emptive rights, for up to 10% of its share capital

Earlier, Asian equities extended their advance, supported by sustained optimism in artificial intelligence and signs of progress in US-Iran talks.  The MSCI Asia Pacific Index climbed as much as 1%, putting it on track to recover losses from the previous week. Japan and Taiwan led broad advances in the region. Interest in AI stocks remained firm amid stellar results from companies. Lenovo Group was the best performer on the Asian benchmark after reporting strong growth in AI-related earnings. In Japan, tech shares led gains, while the Kosdaq gauge extended gains in South korea to a second day, driven by a new government-backed fund for tech firms. Japanese equities rose, “supported by lower interest rates and expectations for an end to the Iran conflict,” BofA Securities analysts including Masashi Akutsu wrote in a note. “From a medium-term perspective, we maintain a preference for AI-related names and a bullish stance on Japanese equities.”  Here Are the Most Notable Movers

• China’s hottest AI stocks may be among candidates for inclusion in Hong Kong stock gauges, opening access to trading links that may trigger billions of dollars in inflows.
• Zhipu shares surge as much as 23% in Hong Kong to a record, with analysts citing the Chinese AI company as a potential candidate for inclusion in the Hang Seng Tech Index.
• Lenovo Group Ltd. shares jumped to the highest in 26 years on Friday after reporting strong growth in AI-related earnings that offset difficulties from rising component prices.
• SoftBank Group shares surged for a second day, rising as much 13.9%, after the ADRs of its unit ARM Holdings rallied in the wake of earning results from AI chip leader Nvidia, which Jefferies sees as positive for ARM.
• Tongcheng Travel’s shares drop as much as 6.6%, after Citigroup cut its price target for the Chinese online travel agent, citing concerns over the greater-than-expected impact of oil price hikes on domestic Travel.
• Shares of NetEase rise as much as 5.8% in Hong Kong after the Chinese video games company reported better-than-expected results, thanks to strong game revenue growth and record-high margins after cost-cutting efforts.
• Lenovo’s shares rally as much as 11% in Hong Kong to their highest since March 2000, after the Chinese computer hardware maker reported fourth quarter revenue that beat estimates.
• Xiaomi’s Hong Kong-listed shares jump as much as 1.6% after the company introduced a performance version of its popular YU7 SUV, which Citigroup estimates could achieve monthly sales above 10,000 units.
• Shares of Guzman y Gomez surge as much as 21% after the Australian burrito restaurant chain exits the US market, a move that analysts say will improve future earnings.
• Tuas shares slide as much as 10% after the Australian telecommunications firm confirmed that the sale and purchase agreement for its subsidiary Simba to acquire M1 has been terminated.

The Bloomberg Dollar Spot Index is up by 0.2% after closing +0.1% in a choppy Thursday session, Antipodeans lag amid the risk environment and shifting tightening bets. Conflicting reports from the Gulf whipsawed the Buck on Thursday. Traders circulated fabricated reports that a final US-Iran draft had been reached, attributing the report to Al Arabiya, though this was later denied by the outlet. Despite this, progress in talks appears evident, while gaps remain on key issues, uranium and Hormuz. Energy benchmarks have rebounded, and as such, DXY is a touch firmer. The index resides well above significant DMAs, and within recent ranges - today supported by 99.20.

• AUD is the worst G10 performer as domestic banks push back on RBA calls. Recent soft PMI, and labour market data which showed a surprise contraction in headline employment change, and an uptick in the unemployment rate prompted NAB and Westpac to push calls for tightening back to August, which both previously expected the first hike expected in June. AUD/USD resides within Thursday's ranges, remaining below 0.72 and supported by 0.71.
• GBP is unchanged against the Buck, and a touch firmer against the EUR. Retail Sales missed estimates, with the ONS noting that the poor figure was driven lower by fuel purchases. The PSNB figure also rose from April's print and overshot the OBR's forecast.
• EUR/GBP lower by 0.1% and within Thursday's broad ranges. Support around 0.8640. GBP/USD little changed, within recent ranges

In rates,  Treasuries gained for a third straight day after yields earlier this week tested multiyear highs. US yields are 1bp-1.5bp richer across the curve with intermediates outperforming, flattening 2s10s spread by almost 1bp; 10-year near 4.56% trails bunds and gilts in the sector by about 2.5bp. SIFMA has recommended a 2pm New York time close of trading for USD-denominated cash bonds ahead of US Memorial Day holiday Monday. IG dollar issuance slate empty so far. One offering was priced on Thursday, bringing weekly total to about 80% vs dealers’ $40 billion forecast. Focal points of holiday-shortened US session include University of Michigan sentiment data and speech by Fed’s Waller on the economic outlook.

In commodities, WTI crude futures are up around 2%, snapping a three-day decline, following latest Iran comments on uranium and the Strait of Hormuz.

Economic data slate includes May final University of Michigan sentiment (10am) and Kansas City Fed services activity (11am). Fed speaker slate includes only Waller at 10am

Market Snapshot

Top overnight News

• Oil rose as an Iran peace deal remained elusive. Iran’s recent attack on UAE’s nuclear power plant is seen as a “warning shot.” BBG
• Arabiya and Al Hadath exclusively report the text of the anticipated US-Iran agreement in case of its approval. The agreement includes: an immediate, comprehensive, and unconditional ceasefire on all fronts, a halt to military operations, ensuring freedom of navigation in the Arabian Gulf, the Strait of Hormuz, and the Sea of Oman and establishing a joint mechanism for monitoring and resolving disputes.
• Trump said the US will send 5,000 more troops to Poland in a policy U-turn. Separately, Ukraine and its allies are growing confident Russia’s invasion is running out of steam. BBG
• China has launched an unprecedented campaign against illegal cross-border trading, threatening severe penalties against popular brokers and ordering existing non-compliant accounts to be liquidated within two years. BBG 
• China imposed new export controls on some key chemical ingredients shipped to the US, Mexico and Canada, in a further sign of cooperation with Washington on curbing drug trafficking. The targeted substances are primary building blocks used to manufacture illicit fentanyl. BBG
• China’s stock exchanges are scrutinizing recent stock rallies that have been fueled by artificial intelligence optimism, asking some listed companies and funds to give more details about their approach to the technology. Regulators have sent inquiries to managers of exchange-traded funds and other funds with heavy exposure to AI-related sectors, asking them to disclose their valuation methodologies and justify the assets they hold. BBG
• Japan’s key inflation gauge rose at the slowest pace in four years as the government continued to help ease the cost of living, creating difficult optics for the Bank of Japan to raise interest rates soon. Japan’s core consumer price index, which excludes fresh food, rose 1.4% in April from a year earlier. BBG
• The IMF approved the latest review of Argentina’s $20 billion debt deal to unlock about $1 billion, a vote of confidence in Javier Milei despite the country missing a program target. BBG
• UK government borrowing hit the highest level for any April in six years, as pressure on public finances mounts from the Iran war and domestic political instability. BBG
•  House Republican leaders canceled a vote on the war as GOP absences threatened a defeat for Donald Trump. BBG

Iran News

• Arabiya and Al Hadath exclusively report the text of the anticipated US-Iran agreement in case of its approval. The agreement includes: an immediate, comprehensive, and unconditional ceasefire on all fronts, a halt to military operations, ensuring freedom of navigation in the Arabian Gulf, the Strait of Hormuz, and the Sea of Oman and establishing a joint mechanism for monitoring and resolving disputes.
• US Secretary of State Rubio said there has been slight progress on Iran. Iran is trying to create a tolling system in the Strait, and no nation should accept that. We will be continuing talks with Iran, and there is progress.
• "A Pakistani source says that cautious optimism is the prevailing sentiment in the ongoing discussions regarding the planned agreement.", Al Arabiya reported.
• Pakistan source said the US and Iran's insistence on raising the bar for their demand regarding uranium and the Strait of Hormuz has led to a "crisis in negotiations", Al Jazeera reported.
• Pakistani Interior Minister met again with Iran's Foreign Minister to study proposals for resolving disputes between US and Iran, Al Jazeera reported, citing the Pakistani Embassy.
• Pakistan's Interior Minister will remain in Tehran on Friday to continue consultations and meet with Iranian officials, while a high-level source said the Pakistani Army Chief would not travel to Tehran on Thursday night, according to Al Arabiya.
• Pakistan's Foreign Ministry spokesperson said China supports mediation efforts and has presented a 5-point initiative.
• Iranian National Security Commission member Rezei posted "These negotiations are probably also a hoax and the Americans have no desire for diplomacy"; says "instead of diplomats, send missiles to negotiate."
• Iranian Foreign Ministry said "Everything being circulated about the status of the negotiations is not accurate", Al ArabyTV reported.
• UAE official said there is a '50-50' chance of US-Iran Strait of Hormuz agreement, AFP reported.
• Unconfirmed reports of explosions in the UAE, Tasnim reported. Details of the explosions have not yet been released.
• Iraqi ports said search teams have been mobilised within territorial waters after contact was lost with two ships, while they did not receive any distress calls from the two Bolivian-flagged ships with which contact has been lost

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly higher following the positive handover from Wall Street, where all major indices gained and the Dow notched a record close on what was a choppy session, amid cautious optimism due to contradicting geopolitical headlines. ASX 200 gained with outperformance in the mining, materials and resources sectors, although the upside in the broader market was capped by weakness in telecoms, real estate and defensives. Nikkei 225 rallied amid continued tech strength, with SoftBank shares adding to the recent advances with another double-digit percentage gain, while the latest inflation data was softer-than-expected and could compel policymakers to think twice about a June rate hike. Hang Seng and Shanghai Comp were in the green with the Hong Kong benchmark led higher by tech stocks, including Lenovo and NetEase, as the former was boosted by its earnings results, which showed record FY revenue, while the mainland kept afloat after the PBoC upped liquidity efforts for a third day.

Top Asian News

• Chinese regulators and exchanges intensify scrutiny of AI-fuelled market frenzy, pressing listed firms and fund managers to justify valuations, Bloomberg reported citing sources.
• China CSRC and seven other departments said they will establish a routine collaborative regulatory mechanism to conduct comprehensive monitoring and inspections. CSRC plans penalties against Futu Holdings, Up Fintech’s Tiger Brokers and Longbridge Securities, including confiscating illegal gains.
• China's NDRC said regarding the question on investment from the US, that they never told Chinese tech firms they couldn't take foreign investment, while it added that foreign investment must follow Chinese laws and rules, and should not harm national security and interests. Furthermore, it is planning a policy support framework to accelerate AI commercialisation, and stated that prices are set to remain stable as the domestic supply demand outlook improves.

European bourses (STOXX 600 +0.5%) start the final day of the week entirely in the green, heading into an extended weekend for UK and US assets. This follows comments by US Secretary of State Rubio, via the FT, noting "some good signs" in the US-Iran talks, while Reuters reported, citing an Iranian official, that "gaps have been narrowed". More recently, Al Arabiya released the text of the anticipated US-Iran agreement, which includes an immediate and unconditional ceasefire. However, commentary out of Iran earlier in the morning continues to downplay negotiations, with the Iranian Foreign Ministry saying that everything that has been circulated about the status of negotiations is inaccurate. Sectors highlight the positive bias. Technology (+1.8%) leads, closely followed by Telecoms (+1.3%) and Industrial Goods & Services (+0.9%). To the downside lie Real Estate (-0.6%) and Energy (-0.7%). Chemicals (+0.7%) are eking out mild gains despite a flurry of downgrades within the sector (IMCD/Arkema/Evonik to underweight by JPMorgan).

Top European News

• The next EU-UK summit could be postponed until July at the earliest (vs initial June date), Bloomberg reported citing sources. The prospect that substantial deals won’t be agreed in time.
• US Secretary of State Rubio said President Trump is disappointed with some NATO allies. Meeting will set groundwork for NATO leader’s summit.
• German Foreign Minister said defence spending will reach more than 4% of GDP in 2026 and on the way to 5%

FX

• DXY is higher on the session after closing +0.1% in a choppy Thursday session, Antipodeans lag amid the risk environment and shifting tightening bets.
• Conflicting reports from the Gulf whipsawed the Buck on Thursday. Traders circulated fabricated reports that a final US-Iran draft had been reached, attributing the report to Al Arabiya, though this was later denied by the outlet. Despite this, progress in talks appears evident, while gaps remain on key issues, uranium and Hormuz. Energy benchmarks have rebounded, and as such, DXY is a touch firmer. The index resides well above significant DMAs, and within recent ranges - today supported by 99.20. Today sees the UoM final release for May.
• AUD is the worst G10 performer as domestic banks push back on RBA calls. Recent soft PMI, and labour market data which showed a surprise contraction in headline employment change, and an uptick in the unemployment rate prompted NAB and Westpac to push calls for tightening back to August, which both previously expected the first hike expected in June. AUD/USD resides within Thursday's ranges, remaining below 0.72 and supported by 0.71.
• GBP is unchanged against the Buck, and a touch firmer against the EUR. Retail Sales missed estimates, with the ONS noting that the poor figure was driven lower by fuel purchases. The PSNB figure also rose from April's print and overshot the OBR's forecast.
• EUR/GBP lower by 0.1% and within Thursday's broad ranges. Support around 0.8640. GBP/USD little changed, within recent ranges

Central Banks

• ECB President Lagarde said long term inflation expectations are broadly well anchored and are particularly attentive to second-round effects.
• ECB's Demarco said the ECB will probably need to hike in June. There is not much evidence of indirect inflation effects and the 2026 inflation outlook likely to be revised upwardly. Projections to show if one hike is enough or more is needed.
• Westpac pushes back its RBA rate hike call to August and September from a previous call of June and August.

Fixed Income

• Global benchmarks are firmer this morning, albeit modestly so. Action throughout the week has been at the whim of mixed geopolitical newsflow, which has led to choppy trade across the energy space. Today, oil prices are firmer (Brent Jul +3%), but reside towards WTD lows. As such, fixed benchmarks trade with tentative gains this morning as negotiation efforts continue.
• USTs are firmer by a handful of ticks, though the bias throughout the European morning has been choppy. Nonetheless, US paper remains in the green and within a 109-08 to 109-14+ range. From a geopolitical front, Al Arabiya obtained the text of the anticipated agreement between the US and Iran. All key details can be found on the board at 09:16 BST, but the next sticking points incl. the exchanging of text, and then the beginning of negotiation, which the text suggested should begin within 7 days. Ahead, focus will be on speak from Fed’s Waller, where he will touch on the economic outlook, whilst the final US Michigan Consumer Sentiment is also scheduled. Yields have been of great attention this week, with the US 10yr printing multi-month highs (4.68%), whilst the 30yr soared to levels not seen since 2007 (5.2%). As for today, the 10yr is hovering towards WTD lows (4.56%) as markets remain focused on continued negotiations.
• Bunds are firmer by c. 35 ticks, and trade within a 125.06 to 125.30 range. German paper has ultimately followed peers, but has had some domestic data to digest. Early this morning, Final German GDP (Q/Q) was unrevised, whilst the Y/Y metric was revised slightly firmer. Overall, indicative of a resilient economy, though external leads (PMIs) suggest that this may be short-lived. This theme is also seen in the latest Ifo survey, which has stabilised since the last month, though still does not indicate any material improvement in sentiment.
• Gilts started with slight outperformance, but now trade alongside peers. Strength followed peers, with outperformance stemming from a cooler-than-expected Retail Sales report. ONS noted the poor figure was driven lower by fuel purchases, suggesting motorists had full tanks, or had stopped stockpiling as fuel prices stabilised higher, given the length of the energy disruption. The PSNB was also published, which rose to 24.3bln (prev. 12.6bln, exp. 24.3bln). Gilts trade within an 87.56 to 87.86 range.

Commodities

• In terms of the latest on geopolitics, Al Arabiya/Al Hadath reportedly obtained a draft US-Iran agreement which, if approved, would see an immediate and unconditional ceasefire across all fronts. The draft also calls for a halt to military operations and media escalation, a commitment not to target military, civilian or economic infrastructure and guarantees for freedom of navigation in the Arabian Gulf, Strait of Hormuz and Sea of Oman. The agreement would take effect immediately once officially announced by both sides. Pakistan sources said the US and Iran's insistence on raising the bar for their demand regarding uranium and the Strait of Hormuz have led to a "crisis in negotiations”.
• WTI and Brent July futures are on a firmer footing heading into a weekend of risk, and with the sides reportedly hitting a crisis in talks amid raising the bar for demands regarding uranium and the Strait of Hormuz. WTI resides in a USD 96.92-99.43/bbl range while its Brent counterpart trades in a USD 103.77-106.36/bbl parameter.
• Spot gold and silver are softer amid the elevated crude prices. Spot gold trades within a narrow USD 4,507-4,546/oz range, while spot silver trades on either side of USD 76/oz in a USD 75.69-77.04/oz range.
• Base metal futures are mostly firmer amid the overall risk appetite across stocks amid ongoing headlines regarding Pakistani efforts to narrow the gaps between the US and Iran. 3M LME copper resides in a USD 13.56k-13.69k/t. Note that the LME is closed on Monday amid a UK bank holiday.
• China refined fuel exports (ex Hong-Kong) expected to rise slightly from May-June to around 550k MT, according to Reuters sources.
• Japan to receive first oil tanker to exit the Strait of Hormuz since US-Iran war began.
• Hungary's PM said an explosion took place at a MOL's Tiszaujvaros energy plant. One person dead and several injured.
• UAE Presidential Advisor said they were losing out in terms of production under OPEC, leaving it was under consideration for a three-year period.
• Barclays said they have maintained their Brent forecast of USD 100/bbl for 2026, with risks skewed higher.

Trade/Tariffs

• China adjusts drug-making chemicals export list to countries, reports suggest. Exports of relevant chemicals to the US, Mexico and Canada must apply for licenses in accordance with regulations.
• The EU has suspended customs tariffs on certain nitrogen-based fertilisers for one year

US Event Calendar

• 10:00 am: United States May F U. of Mich. Sentiment, est. 48.2, prior 48.2
• 10:00 am: United States Fed’s Waller Speaks on Economic Outlook

DB's Jim Reid concludes the overnight wrap

Morning from Helsinki. After a lot of travel recently, next week is mercifully quiet — though the price is one day off work at the end of it, on half-term childcare duty. Speaking of kids, this weekend I’m organising a U9 cricket festival for around 75 of them. Wish me luck. I’ve used AI to sort out all the complicated fixtures, so by next week I’ll know whether it’s the future of humanity or not.

If this had been written as Europe went home last night, it would have been all about the removal of optimism, higher oil, higher yields and weaker equities. However, optimism over a potential deal in Iran turned everything around before a slight pullback into the US close, as differences appeared to remain over nuclear questions and the future status of the Strait of Hormuz. In the end, this has left Brent at $104.30/bbl this morning, about a dollar below where it was at this time yesterday. The tentative optimism meant 10yr Treasuries (-1.4bps) and the S&P 500 (+0.17%) posted modest gains, with equity futures and Asian markets also moving higher this morning.

In terms of Iran developments, a multitude of contradictory headlines drove markets over the past 24 hours. Initially, oil prices fell in the European morning, as Iran’s ISNA reported that Iran was in the process of responding to a US text, with the report also saying the US text “has narrowed the gaps to some extent”. That initial optimism was soon reversed, as Reuters reported that Iran’s Supreme Leader had ordered that the country’s enriched uranium should stay in Iran. This drove a rebound in oil prices, given that the US had been calling for the removal of Iran’s uranium in the talks. However, Al Jazeera and other outlets later reported denials that such a new directive had been issued. Oil prices then saw a renewed decline amid social media reporting that the US and Iran may have reached a draft agreement that would leave nuclear talks for later, though the veracity of those reports was unclear. Optimism partially ebbed again as Iran’s President Pezeshkian suggested that “we will never back down” in talks. There were also questions over the status of the Strait of Hormuz under any deal, with Trump opposing efforts by Iran and Oman to establish a toll system, saying “we want it open, we want it free, we don’t want tolls”.

The increased optimism around potential movement towards a deal saw Brent crude decline from above $109/bbl early in yesterday’s US session to settle at $102.58/bbl (-2.32% on the day), before edging higher again to $104.30/bbl as I type. The moderation in oil prices helped Treasury yields reverse initial increases yesterday, with the 10yr yield down -1.4bps to 4.57% after trading as high as 4.63%. They are flat this morning.

That decline in long-term yields came despite more hawkish repricing at the front end, with 2yr yields up +2.8bps to 4.08% as the probability of a Fed hike by December moved up to 82%, its highest level so far this year. These moves came as US data remained solid, with the flash composite PMI stable at an expansionary level of 51.7 in May, while input prices rose at their fastest pace since November 2022 amid the energy shock.

For equities, improved optimism on Iran meant that US stocks erased initial declines, with the S&P 500 (+0.17%) advancing despite trading in the red for most of the session. This leaves the index just -0.74% below its all-time high and on track to post an eighth consecutive weekly gain, which would be the longest such run since 2023. Defensive sectors and blue-chip names led the advance, bringing the Dow Jones (+0.55%) to a new record high. Tech stocks were broadly stable, with the Nasdaq (+0.09%) and the Magnificent 7 (+0.03%) little changed, though Nvidia (-1.77%) fell after its results the previous evening. By contrast, IBM (+12.43%) surged on news that the US administration agreed to award the company $1bn to build a foundry for producing quantum computing chips. Meanwhile, Intuit (-20.02%) and Walmart (-7.27%) were two of the three biggest decliners in the S&P after soft earnings releases.

A positive mood has mostly continued in Asian markets overnight with the Nikkei (+2.29%) leading the way. Most other main markets are up around half a percent. S&P (+0.26%) and Nasdaq (+0.38%) futures are also higher alongside European Stoxx (+0.82%) futures.
This follows a less positive session in Europe yesterday, with several indices losing ground, including Germany’s DAX (-0.53%) and France’s CAC 40 (-0.39%). However, the STOXX 600 (+0.04%) eked out a fourth consecutive gain, supported by equity strength in other countries, including the UK and Switzerland. A similar story played out in bonds, with 10yr bunds (+0.3bps), OATs (+1.0bps) and BTPs (+1.1bps) seeing modest sell-offs, while 10yr gilts (-2.2bps) outperformed. Market sentiment in Europe was not helped by the May flash PMIs, which showed a deepening downturn in activity as the energy shock weighed. The Eurozone composite PMI fell to its lowest level since October 2023, at just 47.5. In France, the composite PMI fell to 43.5, its lowest since November 2020. Even in the UK, which had held up relatively better in April, the May composite PMI was also in contractionary territory at 48.5. Overall, there was a consistent theme of European weakness, raising fears that the energy shock was having a bigger impact than first thought.

Japan CPI came in softer than expected this morning but it hasn't really moved JGB yields. April CPI came in at 1.4% yoy (1.6% expected), with core the same (1.7% expected). Ex fresh food and energy it came in three tenths lower than expected at 1.9%. Base effects and efforts to shield consumers from the impact of higher oil seem to have helped. The probably of a hike in June has gone down from 82.5% to around 78% according to futures. See our economist’s review of the data here.

Finally, there were a few other US data releases that were generally on the positive side. Weekly initial jobless claims fell slightly to 209k in the week ending May 16 (vs. 210k expected), taking the 4-week moving average down to 202.5k, its lowest level since January 2024. US housing starts for April also fell by less than expected, to an annualised pace of 1.465m (vs. 1.410m expected). The exception was the Philly Fed business outlook, which saw a sharp drop to a five-month low.

Looking ahead, data releases include UK retail sales for April, the Ifo Institute’s business climate indicator for Germany in May, and the University of Michigan’s final consumer sentiment index for the US in May. Central bank speakers include ECB President Lagarde, along with the ECB’s Vujcic, Kazimir and Muller, and the Fed’s Waller.

Tyler Durden Fri, 05/22/2026 - 08:07

Peter Schiff: Printing Money Is Not the Cure for Cononavirus



In his most recent podcast, Peter Schiff talked about coronavirus and the impact that it is having on the markets. Earlier this month, Peter said he thought the virus was just an excuse for stock market woes. At the time he believed the market was poised to fall anyway. But as it turns out, coronavirus has actually helped the US stock market because it has led central banks to pump even more liquidity into the world financial system. All this means more liquidity — central banks easing. In fact, that is exactly what has already happened, except the new easing is taking place, for now, outside the United States, particularly in China.” Although the new money is primarily being created in China, it is flowing into dollars — the dollar index is up — and into US stocks. Last week, US stock markets once again made all-time record highs. In fact, I think but for the coronavirus, the US stock market would still be selling off. But because of the central bank stimulus that has been the result of fears over the coronavirus, that actually benefitted not only the US dollar, but the US stock market.” In the midst of all this, Peter raises a really good question. The primary economic concern is that coronavirus will slow down output and ultimately stunt economic growth. Practically speaking, the world would produce less stuff. If the virus continues to spread, there would be fewer goods and services produced in a market that is hunkered down. Why would the Federal Reserve respond, or why would any central bank respond to that by printing money? How does printing more money solve that problem? It doesn’t. In fact, it actually exacerbates it. But you know, everybody looks at central bankers as if they’ve got the solution to every problem. They don’t. They don’t have the magic wand. They just have a printing press. And all that creates is inflation.” Sometimes the illusion inflation creates can look like a magic wand. Printing money can paper over problems. But none of this is going to fundamentally fix the economy. In fact, if central bankers were really going to do the right thing, the appropriate response would be to drain liquidity from the markets, not supply even more.” Peter explained how the Fed was originally intended to create an “elastic” money supply that would expand or contract along with economic output. Today, the money supply only goes in one direction — that’s up. The economy is strong, print money. The economy is weak, print even more money.” Of course, the asset that’s doing the best right now is gold. The yellow metal pushed above $1,600 yesterday. Gold is up 5.5% on the year in dollar terms and has set record highs in other currencies. Because gold is rising even in an environment where the dollar is strengthening against other fiat currencies, that shows you that there is an underlying weakness in the dollar that is right now not being reflected in the Forex markets, but is being reflected in the gold markets. Because after all, why are people buying gold more aggressively than they’re buying dollars or more aggressively than they’re buying US Treasuries? Because they know that things are not as good for the dollar or the US economy as everybody likes to believe. So, more people are seeking out refuge in a better safe-haven and that is gold.” Peter also talked about the debate between Trump and Obama over who gets credit for the booming economy – which of course, is not booming.

We are living in crazy times. I have a hard time believing that most of the general public is not awake, but in reality, they are. We've never seen anything like this; I mean not even under Obama during the worst part of the Great Recession." Now the Fed is desperately trying to keep interest rates from rising. The problem is that it's a much bigger debt bubble this time around , and the Fed is going to have to blow a lot more air into it to keep it inflated. The difference is this time it's not going to work." It looks like the Fed did another $104.15 billion of Not Q.E. in a single day. The Fed claims it's only temporary. But that is precisely what Bernanke claimed when the Fed started QE1. Milton Freedman once said, "Nothing is so permanent as a temporary government program." The same applies to Q.E., or whatever the Fed wants to pretend it's doing. Except this is not QE4, according to Powell. Right. Pumping so much money out, and they are accusing China of currency manipulation ? Wow! Seriously! Amazing! Dump the U.S. dollar while you still have a chance. Welcome to The Atlantis Report. And it is even worse than that, In addition to the $104.15 billion of "Not Q.E." this past Thursday; the FED added another $56.65 billion in liquidity to financial markets the next day on Friday. That's $160.8 billion in two days!!!! in just 48 hours. That is more than 2 TIMES the highest amount the FED has ever injected on a monthly basis under a Q.E. program (which was $80 billion per month) Since this isn't QE....it will be really scary on what they are going to call Q.E. Will it twice, three times, four times, five times what this injection per month ! It is going to be explosive since it takes about 60 to 90 days for prices to react to this, January should see significant inflation as prices soak up the excess liquidity. The question is, where will the inflation occur first . The spike in the repo rate might have a technical explanation: a misjudgment was made in the Fed's money market operations. Even so, two conclusions can be drawn: managing the money markets is becoming harder, and from now on, banks will be studying each other's creditworthiness to a greater degree than before. Those people, who struggle with the minutiae of money markets, and that includes most professionals, should focus on the causes and not the symptoms. Financial markets have recovered from each downturn since 1980 because interest rates have been cut to new lows. Post-2008, they were cut to near zero or below zero in all major economies. In response to a new financial crisis, they cannot go any lower. Central banks will look for new ways to replicate or broaden Q.E. (At some point, governments will simply see repression as an easier option). Then there is the problem of 'risk-free' assets becoming risky assets. Financial markets assume that the probability of major governments such as the U.S. or U.K. defaulting is zero. These governments are entering the next downturn with debt roughly twice the levels proportionate to GDP that was seen in 2008. The belief that the policy worked was completely predicated on the fact that it was temporary and that it was reversible, that the Fed was going to be able to normalize interest rates and shrink its balance sheet back down to pre-crisis levels. Well, when the balance sheet is five-trillion, six-trillion, seven-trillion when we're back at zero, when we're back in a recession, nobody is going to believe it is temporary. Nobody is going to believe that the Fed has this under control, that they can reverse this policy. And the dollar is going to crash. And when the dollar crashes, it's going to take the bond market with it, and we're going to have stagflation. We're going to have a deep recession with rising interest rates, and this whole thing is going to come imploding down. everything is temporary with the fed including remaining off the gold standard temporary in the Fed's eyes could mean at least 50 years This liquidity problem is a signal that trading desks are loaded up on inventory and can't get rid of it. Repo is done out of a need for cash. If you own all of your securities (i.e., a long-only, no leverage mutual fund) you have no need to "repo" your securities - you're earning interest every night so why would you want to 'repo' your securities where you are paying interest for that overnight loan (securities lending is another animal). So, it is those that 'lever-up' and need the cash for settlement purposes on securities they've bought with borrowed money that needs to utilize the repo desk. With this in mind, as we continue to see this need to obtain cash (again, needed to settle other securities purchases), it shows these firms don't have the capital to add more inventory to, what appears to be, a bloated inventory. Now comes the fun part: the Treasury is about to auction 3's, 10's, and 30-year bonds. If I am correct (again, I could be wrong), the Fed realizes securities firms don't have the shelf space to take down a good portion of these auctions. If there isn't enough retail/institutional demand, it will lead to not only a crappy sale but major concerns to the street that there is now no backstop, at all, to any sell-off. At which point, everyone will want to be the first one through the door and sell immediately, but to whom? If there isn't enough liquidity in the repo market to finance their positions, the firms would be unable to increase their inventory. We all saw repo shut down on the 2008 crisis. Wall St runs on money. . OVERNIGHT money. They lever up to inventory securities for trading. If they can't get overnight money, they can't purchase securities. And if they can't unload what they have, it means the buy-side isn't taking on more either. Accounts settle overnight. This includes things like payrolls and bill pay settlements. If a bank doesn't have enough cash to payout what its customers need to pay out, it borrows. At least one and probably more than one banks are insolvent. That's what's going on. First, it can't be one or two banks that are short. They'd simply call around until they found someone to lend. But they did that, and even at markedly elevated rates, still, NO ONE would lend them the money. That tells me that it's not a problem of a couple of borrowers, it's a problem of no lenders. And that means that there's no bank in the world left with any real liquidity. They are ALL maxed out. But as bad as that is, and that alone could be catastrophic, what it really signals is even worse. The lending rates are just the flip side of the coin of the value of the assets lent against. If the rates go up, the value goes down. And with rates spiking to 10%, how far does the value fall? Enormously! And if banks had to actually mark down the value of the assets to reflect 10% interest rates, then my god, every bank in the world is insolvent overnight. Everyone's capital ratios are in the toilet, and they'd have to liquidate. We're talking about the simultaneous insolvency of every bank on the planet. Bank runs. No money in ATMs, Branches closed. Safe deposit boxes confiscated. The whole nine yards, It's actually here. The scenario has tended to guide toward for years and years is actually happening RIGHT NOW! And people are still trying to say it's under control. Every bank in the world is currently insolvent. The only thing keeping it going is printing billions of dollars every day. Financial Armageddon isn't some far off future risk. It's here. Prepare accordingly. This fiat system has reached the end of the line, and it's not correct that fiat currencies fail by design. The problem is corruption and manipulation. It is corruption and cheating that erodes trust and faith until the entire system becomes a gigantic fraud. Banks and governments everywhere ARE the problem and simply have to be removed. They have lost all trust and respect, and all they have left is war and mayhem. As long as we continue to have a majority of braindead asleep imbeciles following orders from these psychopaths, nothing will change. Fiat currency is not just thievery. Fiat currency is SLAVERY. Ultimately the most harmful effect of using debt of undefined value as money (i.e., fiat currencies) is the de facto legalization of a caste system based on voluntary slavery. The bankers have a charter, or the legal *right*, to create money out of nothing. You, you don't. Therefore you and the bankers do not have the same standing before the law. The law of the land says that you will go to jail if you do the same thing (creating money out of thin air) that the banker does in full legality. You and the banker are not equal before the law. ALL the countries of the world; Islamic or secular, Jewish or Arab, democracy or dictatorship; all of them place the bankers ABOVE you. And all of you accept that only whining about fiat money going down in exchange value over time (price inflation which is not the same as monetary inflation). Actually, price inflation itself is mainly due to the greed and stupidity of the bankers who could keep fiat money's exchange value reasonably stable, only if they wanted to. Witness the crash of silver and gold prices which the bankers of the world; Russian, American, Chinese, Jewish, Indian, Arab, all of them collaborated to engineer through the suppression and stagnation of precious metals' prices to levels around the metals' production costs, or what it costs to dig gold and silver out of the ground. The bankers of the world could also collaborate to keep nominal prices steady (as they do in the case of the suppression of precious metals prices). After all, the ability to create fiat money and force its usage is a far more excellent source of power and wealth than that which is afforded simply by stealing it through inflation. The bankers' greed and stupidity blind them to this fact. They want it all, and they want it now. In conclusion, The bankers can create money out of nothing and buy your goods and services with this worthless fiat money, effectively for free. You, you can't. You, you have to lead miserable existences for the most of you and WORK in order to obtain that effectively nonexistent, worthless credit money (whose purchasing/exchange value is not even DEFINED thus rendering all contracts based on the null and void!) that the banker effortlessly creates out of thin air with a few strokes of the computer keyboard, and which he doesn't even bother to print on paper anymore, electing to keep it in its pure quantum uncertain form instead, as electrons whizzing about inside computer chips which will become mute and turn silent refusing to tell you how many fiat dollars or euros there are in which account, in the absence of electricity. No electricity, no fiat, nor crypto money. It would appear that trust is deteriorating as it did when Lehman blew up . Something really big happened that set off this chain reaction in the repo markets. Whatever that something is, we aren't be informed. They're trying to cover it up, paper it over with conjured cash injections, play it cool in front of the cameras while sweating profusely under the 5 thousands dollar suits. I'm guessing that the final high-speed plunge into global economic collapse has begun. All we see here is the ripples and whitewater churning the surface, but beneath the surface, there is an enormous beast thrashing desperately in its death throws. Now is probably the time to start tying up loose ends with the long-running prep projects, just saying. In other words, prepare accordingly, and Get your money out of the banks. I don't care if you don't believe me about Bitcoin. Get your money out of the banks. Don't keep any more money in a bank than you need to pay your bills and can afford to lose.











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The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

The FBI released a summary of its file from the Hillary Clinton email investigation on Friday, showing details of Clinton's explanation of her use of a private email server to handle classified communications. The release comes nearly two months after FBI Director James Comey announced that although Clinton's handling of classified information was "extremely careless," it did not rise to the level of a prosecutable offense. Attorney General Loretta Lynch announced the next day that she would not pursue charges in the matter. "We are making these materials available to the public in the interest of transparency and in response to numerous Freedom of Information Act (FOIA) requests," the FBI noted in a statement sent to reporters with links to the documents. The documents include notes from Clinton's July 2 interview with agents, as well as a "factual summary of the FBI's investigation into this matter," according to the FBI release. Throughout her interview with agents, Clinton repeatedly said she relied on the career professionals she worked with to handle classified information correctly. The agents asked about a series of specific emails, and in each case Clinton said she wasn't worried about the particular material being discussed on a nonclassified channel.