ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jun 22 11:47

McCain Office Involved In IRS Targeting Scandal; Pushed "Financially Ruinous" Audits Of 501(c) Orgs

Stunning Confirmation: Judicial Watch Obtains IRS Documents Showing McCain Staff Urging IRS To Target Tea Party Groups…

Jun 22 11:37

Active Managers Move “All In” Again

Jun 22 10:10

OPEC Cartel On The Verge Of Collapse

tomorrow OPEC may break apart again, for the simple reason that Iran, OPEC's third largest producer, finds itself in a lose-lose situation, in which it either agrees with a production boost, thereby effectively greenlighting US sanctions against itself and allows Saudi Arabia to take over much of its market share, or defies Saudi Arabia, and along with Venezuela, causes OPEC to splinter again.

Sure enough, with just hours to go until tomorrow's meeting, Iran has continued to reject any increase in OPEC oil production, potentially dooming any effort by Saudi Arabia and Russia to get a consensus decision tomorrow.

According to Bloomberg, during today's Vienna talk, ministers from some of the world’s largest oil producers failed to secure the sought-after compromise that would allow the cartel to ease back on its production cuts.

Jun 22 10:06

The US-China Trade War Summarized In One Chart

With the US and China now actively engaged in several rounds of tit-for-tat tariffs and retaliations, it is easy to lose track of a) where we currently are in the escalating trade standoff and b) what has actually been implemented.

As a handy guide, Goldman reminds us that in the latest overture by the US on June 18, the White House announced that it would impose 10% tariffs on an additional $400 billion of products from China if intellectual property policies and related issues are not addressed or if China retaliates; China vowed to retaliated immediately.

Put in context, this would potentially involve tariffs on two successive rounds of $200 billion each. And since previously, President Trump had previously proposed a 25% tariff on a second round of $100bn in imports from China, this latest proposal amounts to a net $300bn increase in products affected.

Jun 22 09:14

The Rockefeller-Connected Cronyist Origins Of Social Security

the time Social Security was being developed, about 15 percent of workers were covered by a company pension plan, with a little more than 300 – mostly large – businesses offering such plans. In his testimony before the Senate Finance Committee in 1935, Brown declared that government compulsion of universal employer “contributions” to old-age pensions would make “uniform throughout industry a minimum cost of providing old-age security and protect(s) the more liberal employer now providing pensions from the competition of the employer who otherwise fires the old person without a pension.”

Jun 22 09:00

Keiser Report: Market Manipulation

In this episode of the Keiser Report from Dublin, Ireland, Max and Stacy discuss the ‘special place in hell’ for those previously known as our closest allies. They also discuss the UK’s plan to enforce ‘online civility’ through a Chinese-developed technique of ‘online identities.’ In the second half, Max interviews Henri Pihkala, CEO of Streamr, about real-time data and decentralization.

Jun 22 08:53

Eurogroup Rules Out New Bailout Program for Greece

Eurogroup President Mario Centeno announced in the early hours of Friday that Greece had completed the eight-year ESM assistance program and would no longer need bailout money.

"Today the institutions confirm Greece as implemented all the 88 prior actions and the fourth and final review. This shows Greece as successfully completed its ESM program. This is it… There will be no follow-up program in Greece," he told reporters.

Jun 22 08:34

Trump Administration Gutting Financial Protections Will Allow Banks to Steal From You

We make sure that when customers buy toasters, the machines don't burn down that consumer's house, so why is a similar protection for financial instruments like pensions, student loans and investments being taken away by the Trump Administration?

Jun 22 08:32

Iran makes Trump an offer he can’t refuse

Iran’s oil minister said problems in the oil market were political and not the result of a supply and demand imbalance.

“The current problem in the oil market is the result of political tension caused by the American president, not supply and demand imbalance,” Bijan Zangeneh said on Tuesday before his departure to the OPEC summit, Shana news agency reported.

Recently, Hossein Kazempour Ardebili, Iran’s OPEC governor, said Venezuela and Iraq will join Iran in blocking a proposal to increase oil production that’s backed by Saudi Arabia and Russia when OPEC and its allies meet in Vienna this week.

Jun 22 08:01

Australian Senate Votes For Huge Tax Cuts For Wealthy

Backed by nearly all the right-wing populists in the Senate, the Turnbull government yesterday succeeded in pushing through parliament legislation that promises to hand massive income tax cuts to rich households.

While the government claimed to be assisting low-income families, their tiny tax cuts will be dwarfed by those for the wealthiest layers of society. Workers paid less than $37,000 a year will get up to $200 in a tax offset—just enough for a cup of coffee a week—to be paid in a lump sum after July 1, 2019.

Jun 21 19:36

'Germany profited MASSIVELY from Greek debt!' BILLIONS put in German budget by crisis

Shocking new figures revealed today show that despite Germany’s fear taxpayers would pick up the bill for the crisis in Greece, Angela Merkel’s nation has actually made money on the massive sums sent to Greece.

In response to parliamentary question from the Green Party, the German government released figures today showing that Berlin has made €2.9 billion in interest payments on Greek bonds since 2010.

Jun 21 15:58

A Day Late And A Dollar Short: Supremes Approve Online Sales Tax

The damage has already been done.

Jun 21 12:33

S&P500 Possible Bearish Turn

Jun 21 11:15

US Aims to Drive Foreign Investments Out of China Through Trade War - Analysts

The United States is likely trying to force foreign companies to move their production away from China, by introducing excessive tariffs on Chinese-made products amid the escalation of trade tensions between the world’s two largest economies, experts told Sputnik.

After slapping 25 percent tariffs on Chinese products valued at $50 billion last week, US President Donald Trump said he has instructed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent, according to a statement released by the White House on Monday.

China responded with 25 percent tariffs on major US exports to the country, including agricultural products, automobiles and energy products with a matching value of $50 billion. Beijing vowed to take "quantitative and qualitative" measures against further "blackmail and irrational actions" from the United States, the Chinese Ministry of Commerce said in a statement on Tuesday

Jun 21 11:04

Why a US-Style Housing Bust & Mortgage Crisis Can Happen in Canada, Australia, and Other Bubble Markets

Despite persistent and false memes to the contrary.

Jun 21 08:58

Will the Real Donald Trump Please Stand Up?

I had coffee with a foreign friend a week ago. The subject of Donald Trump inevitably came up and my friend said that he was torn between describing Trump as a genius or as an idiot, but was inclined to lean towards genius. He explained that Trump was willy-nilly establishing a new world order that will succeed the institutionally exhausted post-World War 2 financial and political arrangements that more-or-less established U.S. hegemony over the “free world.” The Bretton Woods agreement and the founding of the United Nations institutionalized the spread of liberal democracy and free trade, creating a new, post war international order under the firm control of the United States with the American dollar as the benchmark currency. Trump is now rejecting what has become an increasingly dominant global world order in favor of returning to a nineteenth century style nationalism that has become popular as countries struggle to retain their cultural and political identifies.

Jun 21 08:53

Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April

Russia adds another 600,000 oz to it’s gold reserves in May
Holdings of U.S. government debt slashed in half to $48.7 billion in April

‘Keeping money safe’ from U.S. and Trump – Danske Bank

Trump increasing the national debt by another 6% to $21.1 trillion in less than 18 months

Asian nations accumulating gold as shield against dollar devaluation and trade wars

Russia dumps Treasuries for gold and in a Trade war China and others may do the same …

Jun 21 08:36

Big Four Audit “Oligarchy” Comes under Scrutiny in the UK after Corporate Surprise Collapses

The “oligarchy” controls the standard-setters, ensuring rules of the game suit it. The long reach of the bean counters also extends deep into the heart of government.

Jun 21 08:12

The Smart Money Gets Ready for the Next Credit Event

“It feels like we’re about 12 months away, but we could get into extended innings.”

Jun 21 08:11

Trump’s Trade War with China: A Great Miscalculation

Trump and his advisors seem to be extremely ill-informed about the ways in which China can retaliate, even though the US can impose tariffs on more Chinese goods, than China can impose on the US, says CEPR’s Dean Baker

Jun 21 05:04

What Life Is Really Like for a Venezuelan Mom

After a collapse, the simplest things are a struggle. The story of this Venezuelan mom really brings it all to life.

Jun 21 00:20

America’s Debt Dependence Makes It An Easy Economic Target

The argument that the central bank can jump in at any time to monetize that debt and reduce the danger is also delusional. This assumes first and foremost that the Fed WANTS to reduce the danger. I believe they want the danger to increase, not decrease. Debt monetization also has the added bonus of causing even more inflation as foreign investors dump their dollar denominated assets back into the US. Monetization is a poison, not a cure. The crisis is here, now. Seeing and accepting it allows us to prepare accordingly. Denying it as inconsequential sets people up as victims of their own bias and ignorance.

Jun 20 14:46

Weapons of Mass Migration

In Goodbye Europe? Hello, Chaos? – Merkel’s Migrant Bomb, Michael Springmann analyzes evidence suggesting that US intelligence may be organizing the mass migration of millions of refugees as a form of asymmetric warfare.

Springmann also quotes anonymous intelligence sources who claim the mass migration into Europe is being coordinated by the US National Intelligence Council (NIC), MI6 (Britain’s secret intelligence service) and Turkish secret services, with financing from Saudi Arabia and other Gulf states. He also alleges routine collaboration between CIA case officers and human rights and pro-migrant groups to pay off people smugglers.

I have often wondered how hundreds of thousands of unskilled workers from a broken Syrian economy could come up with the $5,000-10,000 smugglers charge to ferry migrants across the Mediterranean.

Jun 20 14:31

The go anywhere craft set to take US Marines into battle: BAE reveals $6.2 billion amphibious combat vehicle

The Department of Defense estimated that procurement and maintenance of all 208 vehicles in the program will be about $6.2 billion over their lifetime.

Jun 20 12:43

WHITE HOUSE ACCUSES CHINA OF "PERSISTENT ECONOMIC ESPIONAGE AND AGGRESSION"

In what Bloomberg billed as the White House's "latest salvo in the trade war between the world's two largest economies", the Trump administration released a 35-page report late last night fleshing out its national security concerns emanating from China's theft of intellectual properties as well as economic policies that shield domestic Chinese companies from competition.

The report, titled "How China's Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World", accuses China of achieving its brisk economic growth through "aggressive acts, policies, and practices that fall outside of global norms and rules (collectively, 'economic aggression')" (surprisingly, not through nosebleed levels of debt issuance), before it lists two categories of said "economic aggression" that are the focus of the report; they are:

Acquire Key Technologies and Intellectual Property From Other Countries, Including the United States.

Jun 20 09:47

Idiocracy Looms? Study Suggests IQ Scores Are Falling Due To Social Media, Central Banks

A new study, published Monday by Norwegian researchers analyzed the IQ scores between 1962 and 1991 and found that scores increased by almost 3 percentage points each decade for those born between 1962 to 1975 - but then saw a steady decline among those born after 1975.

The earlier rise in IQ scores follows the so-called "Flynn effect" - a term for the long-term increase in intelligence levels that occurred during the 20th century, arguably the result of better access to education - according to Stuart Ritchie, a postdoctoral fellow in cognitive ageing at the University of Edinburgh whose research explores IQ scores and intelligence and who was not involved in the new study.

But the new study, along with similar studies in Denmark, Britain, France, the Netherlands, Finland and Estonia, have all demonstrated a similar downward trend in IQ scores since the early 1970s.

Jun 20 09:46

"World's Biggest Public Toilet" Starbucks Tumbles After Slashing Guidance, 150 Store Closures

It is perhaps poetic justice that not long after Starbucks became one of the world's biggest virtue signalers, when the company decided it would become the world's biggest public toilet in the aftermath of the Philadelphia incident in which two black men were arrested for doing nothing, the company released its most disappointing guidance in years, in which it not only announced it would shutter 150 underperforming stores, and slashed Q3 global comp store sales guidance from +3% to barely positive, ot +1%, but it also admitted that the growth phase is now over, "as the company now expects to return approximately $25 billion in cash to shareholders in the form of share buybacks and dividends through FY20" a $10 billion increase from the cash return target announced on November 2, 2017, and confirmation that NFLX can't even come up $10bn in growth initiatives.

Jun 20 09:29

Small Asian nation dumps dollar & yuan for gold amid growing global trade hostilities

China’s neighbor Kyrgyzstan has been piling up gold reserves as a hedge against a possible trade war between Beijing and Washington.

The country is seeking to boost the share of gold in its $2-billion international reserves to 50 percent from its current 16 percent.

“The rules of the game are changing,” Kyrgyz Central Bank Governor Tolkunbek Abdygulov told Bloomberg in an interview. “It doesn’t matter what currencies we have in our reserves; dollars, yuan or rubles all make us vulnerable.”

Jun 20 09:26

China cuts US investments by 92% amid escalating trade war

The US market saw a significant plunge in investment from China in the first five months of the year amid a growing trade row between the world's two largest economies.

Chinese investments totaled $1.8 billion from January through May, representing a 92-percent drop against the same period a year ago. That’s the lowest level in seven years, according to the latest report by Rhodium Group, a research provider that tracks Chinese foreign investment.

Chinese corporations that had been pumping cash into the US to cement ties over a long period have cut their investments in recent years. In 2017, investments declined by 36 percent to $29.7 billion from $46.5 billion during the previous year.

Jun 20 09:09

Ike Was Right!

Our working hypothesis is that General Eisenhower was right. There were two big temptations to the American Republic of the 1950s; subsequent generations gave in to both of them.

They spent their children’s and grandchildren’s money. Now, the country has a government debt of $21 trillion. That’s up from $288 billion when Ike left the White House.

And they allowed the “unwarranted influence” of the “military/industrial complex” to grow into a monster. No president, no matter how good his intentions, can stop it.

Jun 20 09:08

India Joins International Group Dumping US Dollars in Oil Trades to Bypass US Sanctions

When Donald Trump’s administration decided to withdraw from the Iran nuclear deal, the goal was to partner with allies to push Iran to negotiate a new agreement through even tougher sanctions. The new agreement would cover nuclear activities as well as ballistic missiles and destabilizing Iranian activity in Syria, Yemen and beyond.

World leaders in Asia and Europe, in particular, are reasonably sure that Washington really wants to see the collapse of the Iranian regime in order to control oil flows.

This was an arrogant miscalculation by Washington used to bullying its way around the geopolitical chessboard.

Jun 20 09:06

Subprime Car Loans Are Back

Jun 20 08:17

The Fed’s “Inflation Target” is Impoverishing American Workers

At one time, the Federal Reserve’s sole mandate was to maintain stable prices and to “fight inflation.” To the Fed, the financial press, and most everyone else “inflation” means rising prices instead of its original and true definition as an increase in the money supply. Rising prices are a consequence – a very painful consequence – of money printing.

Naturally, the Fed and all other central bankers prefer the definition of inflation as a rise in prices which insidiously hides the fact that they, being the issuers of currency, are the real culprit for increased prices.

Be that as it may, the common understanding of inflation as rising prices has always been seen as pernicious and destructive to an economy and living standards. In the perverted world of modern economics, however, the idea of inflation as an intrinsic evil has been turned on its head and monetary authorities the world over now have “inflation targets” which they hope to attain.

Jun 20 08:10

Bavarian allies criticize Merkel’s agreement to eurozone budget

A Bavarian ally of Chancellor Angela Merkel has criticized her agreement in principle to a eurozone budget, fueling a conflict over migration. Bavaria’s Christian Social Union party is locked in a dispute with Merkel over its demand to turn back migrants at Germany’s borders. Merkel discussed migration on Tuesday at a meeting with French President Emmanuel Macron, and the two leaders also advocated a eurozone budget of unspecified size that they hope will boost investment. Bavarian Governor Markus Soeder was quoted as saying on Wednesday: “We cannot launch extra shadow budgets now or try to weaken the stability of the currency.” He cautioned Merkel against making financial concessions to win cooperation on migration, AP said.

Jun 20 07:51

Analysis: Trade War With China Could Trigger US Recession As Early As 2019

Direct damages to China and the US due to the trade war will be similar, analysts estimate. For the American and Chinese economies, consequences would result in the loss of 0.2 to 0.3% of annual GDP, and although this is not so serious, the US economy could collapse as early as the first half of 2019, believes a Russian expert.

Analysts have estimated economic consequences in light of recent US and Chinese actions: in response to Trump’s statements about imposing 25% tariffs on Chinese imports, China has announced symmetrical measures in relation to US goods.

“The situation is extremely tense, markets are in a nervous state, even though the scenario of the US-China trade war has been calculated,” said financial analyst Nikita Maslennikov.

Jun 20 07:49

Greece – Convenient Victim or Complacent Masochist? The Devastating Social Impacts of IMF-ECB-EC “Economic Medicine”

Why this title? – Because Greece doesn’t have to continue playing the card of the victim, nor being masochist. Greece seems to suffer under the Stockholm Syndrome – she is in love with her hangman. Greece could change this. Exit the prison, exit the EU and exit the euro. Greece could return to her sovereign national currency, her own sovereign central bank, make her own monetary policy and implement it with a sovereign public banking system that works solely for the Greek economy. Within less than 10 years Greece would have recovered and would even be able to pay back some of her illegally begotten debt.

Jun 20 07:48

France and Germany agree to set up eurozone budget

France and Germany have agreed to set up a common budget for the eurozone, Chancellor Angela Merkel said on Tuesday, announcing a key reform proposal to bolster the bloc.

The sum will be a "real budget with annual revenues and spending," said French President Emmanuel Macron after talks with the German leader, adding that Paris and Berlin hoped to have it in place by 2021.

Macron would not be drawn into giving a figure for the budget, saying that its size would be discussed with other members of the bloc.

How it would be funded was also up for discussion with other eurozone members, said Merkel, suggesting that it could involve regular transfers made by individual countries or a tax on financial transactions.

Jun 20 07:24

Starbucks Pumps the Brakes in Its Home Market

Americans' long-running joke about a Starbucks on every corner may be nearing its end.

The coffee behemoth is retrenching in its home market as it contends with sales growth that Chief Executive Officer Kevin Johnson acknowledges isn’t fast enough. The cafe chain said Tuesday it expects comparable sales to rise just 1 percent globally for the current quarter—the worst performance in about nine years. That’s well below the 2.9 percent analysts were expecting, according to Consensus Metrix.

Jun 20 07:18

Analyst Explains Why EU, Canada and NATO Teaming Up Against Trump

A serious breakup between the US and Canada is unlikely, Canadian journalist and political consultant John Bosnitch told Sputnik, explaining the Trump-Trudeau row and the US president's fight against left-wing globalist clique ruling in Europe and NATO.

Although the recent G7 summit that took place on June 8-9 in La Malbaie, Canada, has not marked "a divorce" between the US and its allies, it was by no means a minor "family quarrel" as White House economic adviser Larry Kudlow called it, says John Bosnitch, a Canadian journalist and political consultant.

Jun 20 03:44

Q.E + Q.T. = Economic Abyss

Jun 19 19:31

So… What Will the Fed Do Next?

Jun 19 19:30

Retirement Is Dead in This Economy

Jun 19 18:05

Yet Another Debt Crisis Is Brewing

Jun 19 16:47

TECHBUBBLE TWO

Jun 19 16:29

Starbucks Closing 150 Stores

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