ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jul 14 15:38

Free Trade And A Textile Fire Tragedy

So-called “free trade” in textiles has led retailers to seek out the cheapest labor and to neglect safety measures, factors in a devastating Bangladesh fire in 2013 that killed more than 1,000 workers, recalls Dennis J Bernstein.

Jul 14 13:51

How to Download and Build Your Own House: “Affordable, Open Source, Modular, Ecological”

Like so many other institutions in our society, the idea of buying and cookie cutter house and being in debt with a mortgage to pay – indefinitely until you die – is out dated, and does nothing to promote freedom for the people living in it. Here's what you could do instead:

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Jul 14 13:49

Brexit campaigner David Davis to lead Britain out of the EU in Theresa May’s new Cabinet

Mr Davis, a former Tory leadership rival to David Cameron, has described Brexit as one of the biggest issues facing Britain.

“The biggest issue over coming years will be managing Brexit, improving UK trade position, controlling borders and enhancing democracy,” Mr Davis tweeted last month.

Making trade deals with countries outside Europe should be a top priority.

“That needs vision, optimism, energy and drive – that is why I am backing @BorisJohnson for Conservative leader,” he added.

Jul 14 13:03

Pennsylvania Approves $1.3bn Bailout

Pennsylvania lawmakers have approved a financial bailout after a yearlong stalemate over the state’s beleaguered budget. The $1.3 billion revenue package marks the highest election-year tax increase in the state’s recent history.

Jul 14 12:24

America’s Huge Racial Wealth Gap Is No Accident

Party platforms are dense and often morosely boring documents filled with wonkish policy proposals and partisan jeers at the other side.

At over 40 pages, this year’s Democratic Party platform lives up to its predecessors in length and ennui. However, it also includes a section not yet seen in platforms from either side: an acknowledgement of the racial wealth gap.

Jul 14 10:47

Fictional World of Gold Standards?

Jul 14 10:00

Are REITs About To Blow The Roof Off?

Jul 14 09:04

GLOBAL MARKETS SKATING ON THIN ICE

Jul 14 08:50

Citigroup Has More Derivatives than 4,701 U.S. Banks Combined; After Blowing Itself Up With Derivatives in 2008

According to the Federal Deposit Insurance Corporation (FDIC), as of March 31, 2016, there were 6,122 FDIC insured financial institutions in the United States. Of those 6,122 commercial banks and savings associations, 4,701 did not hold any derivatives. To put that another way, 77 percent of all U.S. banks found zero reason to engage in high-risk derivative trading.

Citigroup, however, the bank that spectacularly blew itself up with toxic derivatives and subprime debt in 2008, became a 99-cent stock during the crisis, and received the largest taxpayer bailout in U.S. financial history despite being insolvent at the time, today holds more derivatives than 4,701 other banks combined which are backstopped by the taxpayer.

Webmaster's Commentary: 

The important thing to remember is that since 2008, Congress changed the laws to allow the losses from derivatives to be dumped on the taxpayers.

Jul 14 06:59

Extended Blackouts: Power Grid Completely Vulnerable to Sabotage: “America Could Go Dark”

The 21st Century is run off of electricity, and in the United States, that electric grid is woefully out of date – and that has left the country quite vulnerable.

The U.S. electric system is in danger of widespread blackouts lasting days, weeks or longer through the destruction of sensitive, hard-to-replace equipment.

“Virtually any region would suffer major, extended blackouts if more than three key substations were destroyed.”

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Jul 13 16:46

The Rise and Fall of the Petrodollar system

Jul 13 15:09

Eurozone to EXPLODE: Demand for referendums after Brexit puts currency on the brink

THE eurozone is set to be destroyed due to the poor economies of Greece and Italy, a leading economist has warned.

Jul 13 14:19

Gold Is Just Getting Warmed Up: UBS Analyst

Jul 13 14:11

Vanishing The People’s Wealth To Make The Bosses Richer

Imagine you are a shareholder in a big company and the top executives are sitting on huge amounts of cash and are not interested in putting it to work through productive capital investments, research and development, reducing company debt or paying employees a higher wage. What would you want done about it? Since you and other shareholders are the owners of the company, you’d likely say “give us back our money in cash dividends.”

Jul 13 12:37

Grant Williams - Crazy, A Story About Debt

Jul 13 12:33

Robots Will ‘Liberate’ 25% Of Business Service Workers By 2035, Claims Deloitte

A quarter of jobs in Britain’s business services sector will be taken over by robots in the next 20 years because of falling technology costs and rising wages, a new report claims.

Jul 13 11:34

Are we in a low vol Bubble?

Jul 13 11:27

Illinois seeks to shut down state Obamacare insurer; 49,000 to lose insurance

Illinois moved Tuesday to take control of Land of Lincoln Health to begin an orderly shutdown of the insurance company, meaning about 49,000 people will lose their health coverage in the coming months.

The state said it will allow policyholders to buy coverage from a different insurer before their Land of Lincoln plans are terminated, but it's unclear when the policies will lapse.

"It's a bad day for the marketplace in Illinois and our consumers," said Jason Montrie, president and interim CEO of Chicago-based Land of Lincoln. "This is the end."

Jul 13 10:06

U.S. Arms Sales Approvals Set To Reach Nearly $40 billion

The U.S. government is on track to approve nearly $40 billion in foreign military sales in the 2016 fiscal year that ends October 1, down from $46.6 billion last year, a top Pentagon official said on Wednesday.

“We’re tracking toward $40 billion. We’re tracking toward our forecast,” U.S. Navy Vice Admiral Joe Rixey, who heads the Pentagon’s Defense Security Cooperation Agency, told Reuters at the Farnborough International Airshow.

Rixey said the total could still fluctuate, depending on what happened in the fourth quarter.

Britain’s vote to leave the European Union should not affect its relationship with the United States, or potential future arms sale, Rixey said, citing two large UK arms purchases of Boeing Co equipment announced on Monday.

Webmaster's Commentary: 

Our military hardware is one of the few things foreign governments want to buy these day.

Jul 13 09:39

CBO:  In 30 Years, U.S. Will Have Highest Debt-To-GDP Ratio In Our History—141%

If current laws remained generally unchanged, the United States would face steadily increasing federal budget deficits and debt over the next 30 years—reaching the highest level of debt relative to GDP ever experienced in this country.

Jul 13 09:13

1 IN 3 AMERICANS HAVE LESS THAN $500 IN SAVINGS TO COVER EMERGENCIES

Everybody knows that savings are the backbone of financial security and allow us to support ourselves during emergencies. Yet new data suggests people across the world are finding it increasingly difficult to put a substantial amount of money away, leaving them at risk of falling in to debt and other financial problems.

Bargain Fox recently asked 3560 people how much money they have in their savings account or emergency fund, and 1 in 3 Americans said they had less than $500, while 1 in 3 Brits had less than £100 (comparatively even less). "This might be enough to buffer a few unexpected bills," says Bargain Fox's Harsha Kiran, "but anything more catastrophic would result in immediate debt or a budget that would leave them with little to no disposable income."

Webmaster's Commentary: 

Between inflation, taxes, and stagnant wages, these figures come as no surprise.

Even in making the pilgrimage to our local "big box" store, and trying to get the best bargains we possibly can on food (and we are family of 2), it is still a challenge, and the sticker shock is still pretty intense.

Jul 13 09:08

GLOBAL BANKS RACE TO DISPLACE “CITY OF LONDON” TURNS INTO FEEDING FRENZY

As global banks begin scouting for a new European base in the wake of last month’s Brexit vote, it appears that the City of London’s glory days as the world’s most important financial center may be numbered. City-based banks and hedge funds are worried about losing their passporting rights, which grant them full access to the EU’s financial markets. They’re also concerned that the UK might lose its special authorization to clear transactions in euros. “In theory, extending third-country AIFMD passporting to the U.K. after Brexit should be straight-forward,” Matt Huggett, a partner at law firm Allen & Overy in London, told Bloomberg. “In practice, it will be a political decision with an uncertain outcome. Many managers would like to safeguard themselves beforehand and set up offices in places like Luxembourg and Dublin.”

Jul 13 09:04

1 IN 3 AMERICANS HAVE LESS THAN $500 IN SAVINGS TO COVER EMERGENCIES

Everybody knows that savings are the backbone of financial security and allow us to support ourselves during emergencies. Yet new data suggests people across the world are finding it increasingly difficult to put a substantial amount of money away, leaving them at risk of falling in to debt and other financial problems.
1 in 5 Americans have less than $100 in savings, while 45% have less than $1,000.

Only 35.7% of Americans have more than $3,000 in savings.

Women are nearly twice as likely to have less that $100 in savings than men.

Men a twice as likely to have more than $10,000 in savings than women.

Millennials have less overall savings than Generation X and the Baby Boomers.

11.33% of Millennials have over $10,000 in savings, compared to 25% of Generation X and 27% of Baby Boomers.

Half of those with a PHD have $10,000 or more in savings.

Over half of those who do not have any qualifications have less that $100 in savings.

Jul 13 08:53

US-Led Economic War, Not Socialism, Is Tearing Venezuela Apart

Americans have been trained by decades of Cold War propaganda to look for any confirmation that ‘socialism means poverty.’ But in the case of Venezuela and other states not governed by the free market, this cliche simply doesn’t ring true.

Jul 13 07:53

Why Hollande Spoke Up: 'NATO Doesn't Get to Decide Europe's Russia Relations'

“NATO has no role at all to be saying what Europe’s relations with Russia should be. For France, Russia is not an adversary, not a threat,” these words by French President Francois Hollande as he landed in Warsaw to attend the alliance’s summit meeting on July 8-9 bring home the undercurrents in European politics following Brexit.

Jul 13 07:32

Bartering After an Economic Collapse

It took just a few weeks for society to collapse after the stock market crashed. Bank accounts were frozen, cash was a rare sight and it was pretty much useless, stores were looted and home invasion was a daily reality. Only a few people can remember what happened during the Great Depression and for most of them, bartering was the only salvation.

Webmaster's Commentary: 

That is why having a supply of the pre-1965 silver US coins is a good idea. It's an easily recognized and trusted standard of value.

Jul 13 07:14

Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy

Think "helicopter money" is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan's Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that "boosting fiscal and monetary stimulus at the same time would be effective" in Japan)? Think again.

Speaking overnight in Australia, the Fed's Loretta Mester said "helicopter money" could be considered to stimulate America's economy if conventional monetary policy fails.

Webmaster's Commentary: 

"We will solve the economic crisis by giving rich people more money!" -- Official White Horse Souse

Jul 13 07:07

Why Helicopter Money Won't Push Stocks Higher

Jul 13 01:57

Stock Option Expiration - Risk On!

Jul 12 15:43

Economists oppose George Osborne's corporation tax cuts crusade

Economists have labelled George Osborne’s crusade to slash the UK’s corporation tax rate in the wake of the traumatic Brexit vote a “mistake”, the “wrong thing” and likely to “backfire”.

The Chancellor said last week he wants to push the levy on company profits down below 15 per cent in order to demonstrate that Britain is “open for business” to international investment in the wake of the shock vote by the electorate to leave the European Union.

Mr Osborne has already slashed the rate from 28 per cent in 2010 to 20 per cent today and has made deep reductions in the levy one of the centrepieces of his personal economic record.

Jul 12 15:42

US Probe Into HSBC Money Laundering ‘Hampered’ By George Osborne – Reports

Chancellor George Osborne sought to influence a US investigation into HSBC, after the bank admitted laundering money for drug cartels and terrorists, by warning prosecution could throw the global financial system into turmoil.

Jul 12 15:13

Iceland Proves You Don’t Need a Politician or Businessman as President

Waking Times

With admiration, many have been observing Iceland’s handling of the banking crisis that jolted the entire world in recent years. Now experiencing a unique economic recovery, the Icelandic public became aware in 2008 that the nation’s private banks had borrowed some $120 billion dollars, ten times the size of Iceland’s economy, creating an economic bubble which forced housing prices to double, and saddled the nation’s people with debt.

Jul 12 15:09

Here’s What the Brexit Did to the World’s 400 Richest People

Waking Times Media

For all the scaremongering and threats of an imminent financial apocalypse should Brexit win, including dire forecasts from the likes of George Soros, the Bank of England, David Cameron (who even invoked war), and even Jacob Rothschild, something “unexpected” happened yesterday: the UK was the best performing European market following the Brexit outcome.

Jul 12 14:53

ALL WARS ARE BANKERS' WARS!

I know many people have a great deal of difficulty comprehending just how many wars are started for no other purpose than to force private central banks onto nations, so let me share a few examples, so that you understand why the US Government is mired in so many wars against so many foreign nations. There is ample precedent for this.

The United States fought the American Revolution primarily over King George III's Currency act, which forced the colonists to conduct their business only using printed bank notes borrowed from the Bank of England at interest.

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Jul 12 14:32

Retirees May Have A Spend Down Problem

Jul 12 14:12

Why I Trimmed My Short Positions In Half

Jul 12 13:51

Who's Most Afraid Of Contagion From Italy's Bank Meltdown?

French and German banks.

Contagion is the reason Italy’s banking crisis is all of a sudden Europe’s biggest existential threat. Greece’s intractable problems are out of sight, out of mind; Brexit momentarily spooked investors and bankers; but Italy’s banking woes have the potential to wipe out investors and undo over 60 years of supranational state-building in Europe.

Jul 12 13:05

Citibank to close Venezuela government accounts

Jul 12 12:58

BANK RUNS HAVE BEGUN IN ITALY!!!!! ATM's Being Emptied!!!!

We have numerous reports of BANK RUNS taking place right now throughout Italy. Reports of lines of people at ATM's are draining the automatic tellers of all cash.

This comes after weeks of speculation about the health of several Italian banks, including the oldest Bank Monte dei Paschi, which has been in business since the year 1472 - twenty years before Columbus discovered America!

Snce March of this year, SuperStation95 has been reporting the Italian banking system is a “leaning tower” heading toward collapse at literally any moment. And as Italy’s banks begin to go down like dominoes, it is going to set off financial panic all over Europe unlike anything we have ever seen before.

Jul 12 12:14

FLASHBACK - BILL CLINTON LOOTED SOCIAL SECURITY TO CREATE HIS FEDERAL BUDGET SURPLUS

HOLLINGS: Well, the truth is...ah, shoot, well, we all know there's Washington's math problem. Alan Sloan in this past week's Newsweek says he spends 150%. What we've been doing, Mr. Chairman, in all reality, is taken a hundred billion out of the Social Security Trust Fund, transferring it over to the spending column, and spending it. Our friends to the left here are getting their tax cuts, we getting our spending increases, and hollering surplus, surplus, and balanced budget, and balanced budget plans when we continue to spend a hundred billion more than we take in.

Jul 12 12:07

The Euro on the Brink of Disaster

Jul 12 12:02

Social Security Administration To Rely On "Other-Than-Legal Immigration" To Take Up Slack & Pay For Baby Boomer's Benefit Checks

What happens when a criminal government fleeces the people for their entire lives by forcing them to pay into a mandatory 'social security' program yet then spends all the money that was slated for those benefits? Why, they rely on a younger host of illegal aliens- excuse me, "other-than-legal immigration," as they politely put it, to take up the slack in future generations. Here is what the Social Security Administration says about immigration in their official 272-page '2016 OASDI Trustees Report.' OASDI stands for old age, survivor and disability insurance, which is more commonly referred to as Social Security.

Jul 12 11:34

US PROBE INTO HSBC MONEY LAUNDERING ‘HAMPERED’ BY GEORGE OSBORNE - REPORTS

Chancellor George Osborne sought to influence a US investigation into HSBC, after the bank admitted laundering money for drug cartels and terrorists, by warning prosecution could throw the global financial system into turmoil.

A US House of Representatives committee report found the British Chancellor and Financial Services Authority (FSA) intervened in a US Department of Justice (DOJ) investigation into illegal activities by the banking giant.

According to the report, prepared by Republicans, the DOJ considered criminal charges in addition to a £1.2 billion (US$1.6 billion) fine it levied in December 2012, but came under pressure from Osborne to drop prosecution.

The report, ‘Too big to jail: Inside the Obama Justice Department’s decision not to hold Wall Street accountable’, said Osborne sent a letter in September 2012 to Ben Bernanke, then-chairman of the Federal Reserve.

Webmaster's Commentary: 

Imagine my (complete absence of) shock!!

Jul 12 11:26

U.S. Social Security Administration Admits That Their Reserves Will Be Depleted By 2034

In case you missed this last month, The U.S. Social Security Administration admits in their official report that that their reserves will be depleted By 2034 and that the scheduled tax income thereafter is projected to be sufficient to pay only three quarters of benefits, until 2090. That is what you get when your taxes are collected at the barrel of a gun and threat of imprisonment- no accountability.

Jul 12 10:17

Global Stocks Surge On Rising Hopes Of Japan "Helicopter Money"

A quick headline search for the phrases "Japan stimulus" and "helicopter money" is all one needs to understand the very familiar reason for today latest overnight global stock rally, which has sent the USDJPY surging some more, in the process pushing the Nikkei higher by 2.5%, China up over 1% (with the help of some late FX intervention by the PBOC), European stocks up 1%, US equity futures up 0.5%, and so on, in what is a global wave of green on the back of the helicopter money which after Bernanke's visit to Japan, market participants are now convinced is just a matter of time.

As Bloomberg puts it, "global stocks advanced for a fourth day and commodities rose, buoyed by the prospect of stimulus in major economies." And that is all there is to it.

Webmaster's Commentary: 

Jul 12 10:07

THE "MYSTERY" OF WHO IS PUSHING STOCKS TO ALL TIME HIGHS HAS BEEN SOLVED

One conundrum stumping investors in recent months has been how, with investors pulling money out of equity funds (at last check for 17 consecutive weeks) at a pace that suggests a full-on flight to safety, as can be seen in the chart below which shows record fund outflows in the first half of the year - the fastest pace of withdrawals for any first half on record...

... are these same markets trading at all time highs? We now have the answer.

Recall at the end of January when global markets were keeling over, that Citi's Matt King showed that despite aggressive attempts by the ECB and BOJ to inject constant central bank liquidity into the gunfible global markets, it was the EM drain via reserve liquidations, that was causing a shock to the system, as net liquidity was being withdrawn, and in the process stocks were sliding.

Fast forward six months when Matt King reports that "many clients have been asking for an update of our usual central bank liquidity metrics."

Jul 12 08:55

What Economic Recovery; 62% of Americans don’t even have $1000 in savings

A key sign of financial health is savings; if one does not have a decent amount of money tucked away for a rainy day, it is a sign that all is not well. Americans have a very hard time sticking to a budget and saving, compared to their Asian counterparts. This is reflected in the startling revelation that over 62% of Americans do not even have $1000 in their savings account. Foreigners are shocked when they find out that Americans have so little money saved for a rainy day.

Jul 12 08:41

How Monsanto invaded, occupied and now CONTROLS government regulators

(NaturalNews) If you've ever wondered why corporations seem to hold so much sway over our government, look no further than who's making all the decisions in Washington – and more importantly, where many of these people worked before being handed comfy, high-level positions at top government agencies.

You might be surprised at the number of senior advisors, chiefs of staff, judges, commissioners and others employed at agencies like the Department of Justice (DoJ), the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA) who all have one thing in common: they used to hold executive-level positions at multinational corporations like Monsanto.

Jul 12 08:04

UK Becomes Sterling Travel Destination As Pound Plummets

Britain’s weak pound is giving the nation’s tourism industry a much needed boost following the June 23 referendum vote to leave the European Union.

Jul 12 07:38

CYPRUS' PARLIAMENT VOTED FOR THE REMOVAL OF ANTI-RUSSIAN SANCTIONS

The initiators of the vote are calling for the normalization of relations with Russia and the restoration of old commercial and political ties between the countries of the European Community and Moscow. Of the 50 deputies, 33 supported the bill, 17 abstained, and none voted against it.

Jul 12 07:30

Bubble Ready to Implode. Massive QE Coming!

Jul 11 18:25

Energy limits: Why we see rising wealth disparity and low prices

We can think of the situation as follows: An economy that keeps growing is (in energy terms) an out-of-balance system. Rising debt levels help maintain this out-of-balance condition by providing ever-higher commodity prices. These higher prices encourage greater extraction of energy products, even when the cost of extraction is rising because of diminishing returns. Even if extraction costs keep rising, the situation of ever-rising commodity prices cannot go on endlessly. At some point, prices become too high for workers to afford. Demand tends to fall at some point because workers at the bottom of the hierarchy find themselves “priced out” of buying goods such as houses and cars that would help maintain commodity demand.

What causes debt levels to stop rising? One reason why debt levels stop rising is that debt reaches absurd levels, making it difficult to repay debt with interest. Several examples of absurd debt levels are given in Slide 21. An additional example is excessive use of student loans. If incomes after student loans are not high enough, student debt may create a huge burden, preventing former students from buying homes and cars and starting families. The problem is that incomes after the educational experience are not sufficiently high to both pay back debt with interest and leave adequate funds for other needs.

Jul 11 17:36

MASSIVE Chaos to Start…Tomorrow?

Europe is imploding as we speak. From riots in Berlin to ATM runs in Italy to Deutsche Bank begging for a 150B Euro bailout – all the controls are breaking down and there is no way to stop it.

Many people are asking…WHY NOW?

I think it has to do with the BREXIT derivatives that start paying out this week.

Let’s face it – the BREXIT was unexpected by the elite even up to the evening of the vote. TRILLIONS in FX bets were gambled on the outcome and those who were supposed to be “in the know” got it wrong. Now they have to pay up according to the rules set out in the ISDA Master Derivative Agreements and individual derivative contracts on OTC Derivative Market.

Jul 11 16:53

AMERICAN HISPANICS WANT TRUMP WALL

Jul 11 14:04

Hungry Venezuelans Feed on Stray Dogs and Cats: “Pets May End Up in Cooking Pots”

There has been a sharp increase in stray animals on roadsides and city areas, and along with them, people desperate enough to turn to these once-beloved companions as a source of food.

Household pets are the latest casualty in a country where food and other essential goods are becoming ever scarce, inflation is rampant, looting is escalating and electric blackouts occur regularly.

Read more at SHTF

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