ECONOMY | WHAT REALLY HAPPENED


ECONOMY

May 04 11:39

Millennials Must Have 100% Invested in THIS Asset Class! Hint: It’s Probably What You Think

What should I invest in? Where do I put my savings? With interest rates down, investments that are safe yet provide good yield are hard to come by. Risk becomes ever present in search of higher yield. There is no question that this risk is increasing and the bubbles have inflated to a greater degree. There is no escaping the fallout.

May 04 10:36

Why Apple, Tesla And Google Are Fighting For This Rare Metal

There is a massive opportunity for first-in investors in cobalt as major hedge funds start hoarding the physical metal to gain exposure, and this long-overshadowed resource is poised to be more explosive than lithium.

May 04 10:32

Gold Slumps To 6-Week Low As Crude Oil Tanking

Gold prices were ending the U.S. day session sharply down and hit a six-week low Thursday. Crude oil prices dropped to a nine-month low of $45.63 a barrel, which hit most of the raw commodity sector hard to the downside today, including the precious metals. Rallying world stock markets and minimal risk aversion in the marketplace are also keeping buyers of the safe-haven metal very scarce. June Comex gold was last down $18.10 an ounce at $1,230.40. July Comex silver was last down $0.201 at $16.345 an ounce.

As goes the crude oil market, so go most other raw commodity markets, and that was the case Thursday. “Black gold” today showed it clearly leads the raw commodity sector.

Traders are awaiting Friday morning’s U.S. jobs report for April from the Labor Department. The key non-farm payrolls number is forecast to come in at up around 190,000.

May 04 09:36

‘Breaking Point’: Puerto Rico Files For Historic $70bn Bankruptcy

The Commonwealth of Puerto Rico is seeking the largest municipal bankruptcy filing in US history, after failed negotiations with creditors over its $70 billion debt crisis. That’s more than four times the debt Detroit collapsed under.

May 04 09:23

Has The Date Of The Economic Collapse Just Been Leaked?

The collapse of Home Capital Bank could be spreading to other lenders. Greece reaches debt deal but they need to give up more and the country will sell of more of the country.

May 04 09:13

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse

Could Bitfinex, the Hong Kong-based second-largest in the world cryptocurrency exchange, be headed for a Mt. Gox-style collapse? It's starting to look that way.

May 04 09:10

THE STUDENT SERVITUDE SHAM

Many today strongly believe it is morally wrong to indenture students to the degree of liabilities presently required to achieve the education required to become a productive contributor within our modern society.

The question we need to demand answers to is why has college costs for students exploded upward, while salaries and job positions for graduates has not? What is driving the relentless and inexplicable surge in the debt burden for students and their parents?

May 04 09:10

The Central Bank Signals That It's On Track To Bring The Entire System Down

Puerto Rico declares bankruptcy, the restructuring is larger than Detroit. EU blackmails any country that wants to leave the EU, now they want 100 billion euros. ADP employment declines. US auto sales decline as there are more delinquencies among the American people.

May 04 08:51

Puerto Rico Triggers Largest Ever US Muni Bankruptcy Process

“We’re going to protect our people.” Hedge funds reel.

Puerto Rico’s Governor Ricardo Rosselló took the momentous step on Wednesday to trigger the largest municipal bankruptcy-type process in the US, four times larger than the prior record, Detroit’s bankruptcy.

May 04 08:51

Kyle Bass Warns "All Hell Is About To Break Loose" In China

China's credit system expanded "too recklessly and too quickly," and "it's beginning to unravel," warns Hayman Capital's Kyle Bass.

Crucially, Bass notes that ballooning assets in Chinese wealth management products are another sign of a looming credit crisis in the nation.

"Some of the longer-term assets aren't doing very well," Bass said on Bloomberg TV from the annual Milken Institute Global Conference in Beverly Hills, California. "As soon as liabilities have problems - meaning the depositors decide to not roll their holdings - all hell breaks loose."

Webmaster's Commentary: 

Real economics, or economic warfare?

May 04 08:50

The Ferguson Effect: Baltimore Millennials' Worst Nightmare

Last week, I wrote an article titled Baltimore Millennials’ “City Life” Narrative Starts To Crack. It appears the crack in the narrative is much larger than we thought. What’s developing in Baltimore is called the ‘Ferguson Effect’. This is a theory where the increased scrutiny of police post 2014 death of Michael Brown in Ferguson, Missouri and Trayvon Martin in Florida will lead to higher crime rates. Baltimore is turning this theory into a reality, as the city descends into chaos before the summer start. The rapid deterioration of Baltimore in 2017 has caught the linear mindset of the millennials’ off guard, who thought gentrification was right around the corner.

May 04 08:39

China's Plan To Subvert The Global Dollar Standard

Why Gold Is Central to China’s Future Trade-Settlement Policy

China’s challenge is the yuan as a purely fiat currency will take decades to replace the dollar, possibly never. And that assumes that China follows more stable monetary policies than the US. This has not been the case since the Lehman crisis, with China’s M2 broad money quantity expanding rapidly, accounting for much of the world’s monetary growth in recent years. The rate of monetary expansion is criticized as a dangerous credit bubble by western analysts, who are quick to condone monetary expansion in their own developed nations, but turn into hard-core monetarist critics over China. No, China will never replace the dollar with her own currency without a golden guarantee.

Therefore, China needs to deploy gold to displace the dollar. This might be done in one of two ways, one encouraging markets to evolve away from dollars toward gold, or alternatively by the state forcing the pace.

May 04 08:29

In Silicon Valley, even mobile homes are getting too pricey for longtime residents

During the last week of March, Apple reached a record market value of $754 billion, Google tweaked a policy to protect its $22-billion-a-quarter advertising business and Yahoo inched toward closing a $4.83-billion sale. Meanwhile, Judy Pavlick drove around her Sunnyvale, Calif., mobile home park collecting plastic bottles and empty drink cans to save her future.

At a recycling rate of 5 to 10 cents a bottle, the 70-year-old’s attempt to raise $10,000 to campaign for a rent control measure seemed like a long shot. But living in the heart of Silicon Valley — where rents keep soaring, outside interests are encroaching and protections for renters are scant — what else was she going to do?

May 04 08:26

Silver or Gold or Cryptos... or All Three?

As PHYSICAL precious metals owners, you know where our hearts are. But with the rapid rise of cryptocurenncy as an alternative to the US Dollar and other fiat currencies, the question needs to be asked: Is there room in our portfolios for a little Bitcoin, Ethereum or Lite Coin? The United Nations is even embracing them. Are they here to stay? Should you care?

May 04 08:16

GREECE DEBT DEAL IS OFF! Germany halts bail out demanding MORE austerity and pension cuts

GERMANY says it will not support a bail out deal for Greece until it pushes through laws to cut pensions and inflict more austerity on its citizens.

May 04 08:13

The Least Explicable Bubble

Of all the mini-bubbles now inflating out there, maybe the least explicable is the race among emerging market companies to borrow dollars.

May 04 08:05

Is Britain already a Socialist Country? – It is in an “Economic Death Spiral” from which there is Little Hope of Reprieve

Recent figures show that in the UK, more than 50% of households receive more in State benefits than the pay in direct taxes (income tax, VAT etc…) to the Government. The Centre for Policy Studies says that “the average household paid £13,402 in taxes in 2013/14. Yet it received £12,939 in cash benefits and benefits in-kind” When this is added to education and health benefits shows that the majority of British people are a drain on the public purse.

May 04 08:01

Debt is Financial Life – Nonsense!

How does increasing debt affect us?

Rapidly increasing total debt means more dollars in circulation and higher consumer prices.

Increasing debt service for the masses. How much do you owe for mortgage debt, auto loan debt, student loan debt, credit card debt? How much interest do you pay each year?

More profits for Wall Street.

Debt increases every day – globally.

Zimbabwe, Venezuela, Greece, and many more in the near future.

May 04 07:54

$84,000 a year now qualifies as low income in high-cost Orange County

Government and private agencies use HUD’s income calculations to determine eligibility for a wide variety of assistance programs, ranging from rent subsidy vouchers and public housing to mortgage assistance. While low-income families qualify for some programs, others are limited to households earning far less, with limits as low as $31,300 for a family of four.

Record-high rents and home prices are driving up Southern California income limits. Orange County apartment rents, for example, increased 20 percent over the past seven years, while the median sale price of an Orange County house has jumped 40 percent.

May 04 07:26

UK PRIME MINISTER THERESA MAY SAYS EU OFFICIALS ARE MEDDLING IN UK ELECTIONS

Speaking outside Downing Street on Wednesday, after notifying the Queen of the dissolution of Parliament, Theresa May took a tough stance towards EU Oligarchs, saying Brussels eurocrats do not want the Brexit talks to succeed and for Britain to “prosper” after Brexit.

Prime Minister Theresa May accused European officials of trying to influence the result of Britain’s general election with threats of harsh Brexit terms.

The UK PM suggested that Britain’s negotiating position has been misrepresented in the European press.

“In the past few days we have seen just how tough these talks are likely to be. Britain’s negotiating position in Europe has been misrepresented in the continental press.

“The European commission’s negotiating stance has hardened. Threats against Britain have been issued by European politicians and officials. All of these acts have been deliberately timed to affect the result of the general election that will take place on June 8.”

Webmaster's Commentary: 

The EU, at this point, is behaving like a wounded animal; and the most dangerous animals are those which have been wounded.

And even though the wounds are economic in nature, the bureaucrats in Brussels understand that they are fighting for their professional lives.

May 04 06:10

Poland – The Next Crisis for the EU – Independent Sovereignty is the Issue

Poland represents a major threat to the EU. The entire idea of the EU was the propaganda that Member States would successively grow into a real Union through a longer integration process.

May 04 05:32

John Rubino – Is a Recession on the Way?

May 03 16:03

The ’51st U.S. State’ Declares Bankruptcy As Corporate Insiders Sell Stocks At The Fastest Rate Since The Last Financial Crisis

Puerto Rico has collapsed financially and has “filed for the equivalent of bankruptcy protection”. When this was announced on Wednesday, it quickly made front page news all over the planet. For decades, Puerto Rico has been considered to be the territory most likely to become “the 51st U.S. state”, and there have even been rumblings that we could soon see a renewed push for statehood.

May 03 15:20

America : Freedom to Fascism

Webmaster's Commentary: 

For the caller into the radio show.

May 03 14:03

Ann Coulter: Swamp People: 47; Trump: 0

If this is the budget deal we get when Republicans control the House, the Senate and the presidency, there’s no point in ever voting for a Republican again.

Not only is there no funding for a wall, but — thanks to the deft negotiating skills of House Speaker Paul Ryan — the bill actually prohibits money from being spent on a wall.

May 03 12:53

Icelandic krona crowned world’s best-performing currency

The krona has surged four percent against the euro and 6.4 percent against the US dollar since the end of March. It has gained 21 percent against the euro and 15 percent against the dollar in the last year.

The krona was trading at 106.29 per dollar and 115.96 per euro as of 13:30pm GMT on Wednesday.

“While volatility did increase when controls were lifted, the trend has been toward further appreciation, and we expect some further appreciation throughout the summer,” Jon Bjarki Bentsson, a Reykjavik-based economist at Islandsbanki, told Bloomberg. “The surge in tourism has outpaced the growing deficit on goods trade.”

Statistics showed the country attracted a record 1.8 million foreign visitors last year, up 40 percent from 2015.

Webmaster's Commentary: 

See what jailing crooked bankers and writing off debt caused by fraud can do?

May 03 12:49

"They Know Something That We Don't" – Corporate Insiders Are Dumping Their Stocks "At Levels Rarely Seen"

There aren’t any surefire ways to tell if the stock market, and perhaps the rest of the economy, is about to take a nosedive. That’s because millions of people with millions of ideas are involved, so it’s an inherently unpredictable system. However, there are certain players in our economy that have a lot more influence and insider knowledge than the rest of us. So when they make a move in unison, you know there’s a good chance that something is about to go down.

May 03 11:09

America’s Largest Oil Refinery Now 100% Saudi Owned

Saudi Aramco now controls 100 percent of the Port Arthur, Texas, oil refinery – the largest such facility in the United States – according to an announcement on Monday.

May 03 09:46

U.S GOLD SCRAP MARKET DRYING UP: Americans Pawned Off Their Best Asset To Go Further Into Debt

After the U.S. economy disintegrated in 2008, due to the Banking and Housing crisis, Americans pawned off a record amount of gold. How much gold? Nearly, 32 million oz (1,000 metric tons). That’s one heck of a lot of gold. Matter-a-fact, U.S. gold scrap supply at its peak of 160 metric tons (mt) in 2011, was more than any other country in the world, even India and China.

May 03 09:37

Report: North Korea cultivating marijuana to fuel drones

Oil made from Cannabis seed is superior and healthier as a cooking oil by far than soybean oil. Hemp seed oil would be great for running diesel engines,but not gasoline engines. It might work as a jet engine fuel.

May 03 09:29

All the Plenary's Men


The Bank Cartel have their own secret 'laws’ and ‘legal’ system which supersede all national and international laws!
How George Osborne and Mark Carney used these to stop the DOJ from prosecuting bankers.
Eye-opening, even for those who think they know how it works.

May 03 08:52

The Real Defenders of Democracy: Syria and the Struggle against the International Despotism of Wall Street

Are wars of aggression, wars for the conquest of colonies … just big business? Yes, it would seem so, however much the perpetrators of such national crimes seek to hide their true purpose under banners of high-sounding abstractions and ideals.

May 03 08:51

BREAKING: State Department Issues Travel Warning for All of Europe

A large part of the debate over whether or not the United States should admit refugees from the war-torn Middle East is the possibility of terrorists slipping through the cracks. While the U.S. has a vigorous vetting process in place (and only took in 10,000 refugees), Europe maintained what essentially was an “open borders” policy towards migrants.

In 2015 alone 1.3 million Middle Eastern migrants sought refuge in Europe alone – many of which were economic migrants, not even refugees.

And now, as terrorism becomes practically a regular occurrence in Europe, the State Department is issuing a warning to American tourists:

May 03 08:39

Apple's iPhone sales in surprise drop

Apple sold fewer iPhones than a year ago in the first three months of 2017, the company said in its latest results.

The California firm, which is due to release a new phone later this year, said it sold 50.8 million iPhones in the period, down 1% year-on-year.

Apple boss Tim Cook blamed a "pause" as customers wait for the next iPhone.

May 03 07:53

The Elites Have Destroyed the Status Quo's Ability to Self-Correct

You may have seen these charts before, but they tell the story of a middle class in decline.

For any system to endure, it must maintain a built-in capacity to self-correct: that is, it must generate accurate informational feedback about dangerous asymmetries and auto-correct with behavioral feedback.

May 03 07:44

Ranks of seniors catch up, pass young people in Canada, census numbers to show

Paul Kershaw loves his 72-year-old mother and his 101-year-old grandmother.

But they represent a growing challenge for the country, and Kershaw, 42, will be counting on younger age groups to protect and support the services that seniors need as Canada bears witness to a historic greying of its population.

The next batch of numbers from the 2016 census, due Wednesday, is expected to show that thanks to aging baby boomers, there are as many seniors in Canada as young people, if not more — the first time in Canadian history that has been the case.

May 03 07:38

Axel Merk - Easiest Diversifier Is Gold, These Markets Can Be Tipped Over by Anything

Money manager Axel Merk contends the “easiest diversifier is gold.” Merk explains, “I do very much have gold. I have it in physical form and exchange traded form and other means of investing in gold. Yes, I say it’s the easiest diversifier.

May 03 07:25

Action Over Slow Internet Service Sent to NY Court

The fraud and deceptive business practices suit claims that Time Warner sold high-speed service starting in January 2012 that purported to deliver plans at up to 300 megabits per second. But Schneiderman said his office, after complaints from "thousands" of subscribers, found that Time Warner was delivering service at only between 28 percent and 55 percent of its promised speed.

Time Warner was purchased by the Stamford, Connecticut-based Charter Communications in 2016 and operates under the Spectrum brand in New York.

Webmaster's Commentary: 

Spectrum here in Oahu is abysmal. Spectrum has problems all over. I cannot even get some speed tests to work and those that do are are showing less than 20 Mbps on what is supposed to be a 300 Mbps connection!

May 03 06:26

Debt Insanity: Does Anyone In Washington Even Care That We Are 20 Trillion Dollars In Debt?

There has been a tremendous amount of talk about the spending deal that was just reached in Congress. Most of the focus has been on who “won” and who “lost” politically, and if you have been keeping up with my articles you definitely know my opinion on the matter.

May 02 19:00

EU leaders 'plan to hike Brexit bill to £85 BILLION thanks to demanding France & Germany'

THE European Union has reportedly increased its Brexit bill to an eye-watering £85billion (€100bn) after France and Germany made stricter demands on how much the UK should pay.

May 02 16:09

U.S. Auto Sales Plunge Dramatically As The Consumer Debt Bubble Continues To Collapse

One sector of the economy that is acting as if we were already in the middle of a horrible recession is the auto industry. We just got sales figures for the month of April, and every single major U.S. auto manufacturer missed their sales projections.

May 02 14:21

The Great Unwind Grips the 12 Hottest US Rental Markets

Peak Rent. Traces of relief for renters. Landlords scramble. But in cheaper cities, rents soar.

In April, asking rents for two-bedroom apartments declined from their respective peaks in all of the 12 most expensive rental markets in the US, ranging from a tentative 1.3% down-tick in Los Angeles to an 18.9% plunge in Chicago.

May 02 14:10

Billionaire Investor Paul Tudor Jones Says Stock Market Valuation Is “Terrifying” And He Is Right

We live in a unique time. Never before have the markets gone to such extremes in almost every way imaginable.

Not just the markets either. Nearly everything.

May 02 14:07

The U.S. Political Scene: Whiteness And The Legitimacy Crisis Of Global Capitalism

The U.S. political scene has been undergoing a facelift in an effort to restore the decreasing legitimacy of the transnationally-oriented capitalist class. This transformation has been characterized by a right wing that has sought to portray itself as economically nationalistic in an attempt to expand support among the working class (primarily, among working class whites) whose economic stability has dwindled during the neoliberal era.

May 02 12:03

Rickards: It’s time to start preparing for the collapse

Trump unveiled his tax plan last week. Part of his agenda calls for a reduction of the corporate tax rate from 35% to 15%.

It’s unclear at this moment what the final result will be after all the negotiations and political horse trading that will inevitably take place.

May 02 11:55

30Y Treasury Yield Drops Back Below 3.00% As Economic Data Implodes

Following the recent trail of disastrously disappointing 'hard' and 'soft' macro data...Today's slew of narrative-crushing auto-sales misses has hit stocks and bonds, sending 30 Y Yields back below the all-important 3.00%...

Webmaster's Commentary: 

I don't know about the mainland, but car sellers here on Oahu are doing ridiculous deals to try to get product moving, which - by the prices for purchasing, or leasing, a new car - they are not able to do.

People are just tapped out, and trying to keep their old jalopies working for just a little longer, when things are supposed to get better.

The problem is, looking at the economic analyses I have posted from zerohedge.com this morning, things seem to be getting worse for most Americans, and it is a disturbing trend.

May 02 11:49

Is This The Scariest Chart In The World Now?

The scariest chart in the world this week, indeed this month, comes from the US... and plots U.S. real GDP growth.

But... the really scary stuff is longer-term trend in U.S. growth. And that is illustrated in the chart below:

Look at the grey bars: these take periods of expansion in the U.S. economy and average rates of growth over these periods. Notice the pattern? Why, yes, the average expansion-consistent rates of growth have fallen, steadily, since 1975 through today. Worse, controlling for volatile growth (average rates) in pre-1975 period, an exponential trend for average expansion-consistent growth rates (the yellow line) is solidly trending down.

The latest period of economic expansion is underperforming even that abysmal trend. And 1Q 2017 is underperforming that worse than abysmal average.

May 02 11:36

America’s Rapacious Aristocracy and World War III

What America’s aristocrats, the individuals who control the U.S.-headquartered international corporations, are more concerned about than anything else, is dominating the world. This motivation is consistent with the empirical findings in Social Psychology and Personality Psychology, that the richer a person is, the more psychopathic he/she tends to be.

If you’re a billionaire, then getting tax-write-offs and university buildings named after you for ‘philanthropy’ will be fine, but your real obsession will be to win, to dominate everything — by hook or by crook, and no matter what, but this is for real, it is none of the mythology. It’s no different in today’s America than it was in Nazi Germany.

It’s an international gangland operation, and the local aristocracy has adjudged that its best chances for being with the winner will be for their country to buy U.S. weaponry and otherwise to be allied with the U.S. gang.

May 02 11:06

Missouri Medical School Punished For “Too Many Whites”

Columbia-based University of Missouri School of Medicine has been threatened with losing its accreditation status next year because it is too white, according to a new report by the Liaison Committee on Medical Education (LCME).

May 02 11:06

Contagion: Home Capital Bank Run Spreads To Another Canadian Mortgage Lender

Predictably, the news of the ongoing bank run once again spooked shareholders, who sent its stock sliding by 10%, and wiping out two-thirds of the company's market cap in under 2 weeks.

May 02 11:06

45% Of Americans Spend Up To Half Their Income Repaying Credit Card Debts

On several occasions we've pointed out that the baby boomer generation is, to put it mildly, ill-prepared for retirement. In fact, over 50% of baby boomers have basically no savings set aside for retirement at all. Now, a new survey from Northwestern Mutual helps to shed some light on why Americans are completely incapable of saving money.

First, roughly 50% of Americans have debt balances, excluding mortgages mind you, of over $25,000, with the average person owing over $37,000, versus a median personal income of just over $30,000.

May 02 10:53

OPEC Deal Backfires: Saudis Lose Market Share To Iran, Iraq

Since the start of OPEC’s production cuts, oil market analysts and experts have been focusing on how U.S. shale would respond to the relatively higher and stable oil prices, possibly eating up some of the cartel’s global market share while the cuts last.

May 02 10:50

Brawny Paper Towel Goes Full Libtard in New Ad Campaign

May 02 09:47

'Trump Slump': President's rhetoric and travel ban repel millions of tourists to USA

US President Donald Trump's rhetoric about building a wall along the Mexico-US border, repeated attempts to ban immigrants from predominantly Muslim countries and a loud "America First" stance is putting off international tourists from planning holidays to the country.

Projections by Pennsylvania, US-based Tourism Economics (TE), an affiliate of UK research and analysis outfit Oxford Economics, suggest the US could see 4.3m fewer international tourists equating to a revenue loss of $7.4bn (£5.73bn).

Webmaster's Commentary: 

I do not think it is fair to lay the blame for the slump in tourism totally on Trump. The TSA's abuse along with cash seizures by Police from innocent travelers has also harmed our tourism industry.

May 02 09:30

Lab-Grown Meat Coming to Supermarket Shelves Soon?

If this Silicon Valley food-tech startup has its way, its lab-grown meat—which includes chicken, duck and beef—will be on a supermarket shelf near you within the next five years.

“[We’re] trying to put products on the shelves by 2021/2022,” Uma Valeti, Memphis Meats co-founder and CEO, tells FOX Business.

In March, the company announced that it created the “world’s first chicken strip from animal cells,” following their animal-free meatball debut in 2016. Lab-grown beef was previously developed in 2012 by a group of Dutch scientists.

“Essentially, we are taking a number of animal cells, giving them clean and nutritious food and then we watch them grow into a muscle. We harvest that muscle and then cook it,” Valeti says.

The whole process from start to finish takes about four to six weeks, depending on the texture. Valeti says the company’s current main goal is to raise capital and lower their production costs, in order to quickly bring the product to market.

Webmaster's Commentary: 

Humankind has eaten meat for a very, very long time, but there may be a point, economically, where this will not be economically feasible for a lot of people.

Here on Oahu, even with the leanest, and cheapest cuts, the price points here are....pretty terrible, even for the cheapest ground beef available.

But before this is allowed to be put into the market place, and "blessed" by the FDA, I want to see long term health studies on the bodies of meat-eating animals, to insure that this stuff is really safe for humans.

May 02 09:24

Tucker Carlson Asks Immigrant Rights Activist Why He's Shilling For The Chamber Of Commerce

Why is it the left that claims to fight for higher wages and workers' rights now shills for open borders globalism and free trade?

That's the question Tucker Carlson asked immigrant rights activist Steven Choi on his show Monday.

May 02 09:21

As Expected, A 'Bipartisan' Budget...More Spending!

No, the government is not going to close down. It's all a ruse. The budget "crisis" was solved by agreeing on a 1,600 page bill that spends more on the military and more on government programs at home. There's something in it for politicians of almost every stripe. The Russian "threat"? Don't worry! There's $100 million for a fun to counter "Russian propaganda" in Europe. Terrorism? There's a $15 billion appropriation to fight terrorism. Don't worry that Washington's interventionist foreign policy is the primary cause of terrorism. Just spend!

May 02 09:12

London Property Bubble Vulnerable To Crash

UK’s Land Registry data for three London boroughs shows transaction volumes in London — the number of houses being bought and sold — are at an all-time low. Back in December asking prices in London dropped 4.3% in December with inner London down 6%, more exclusive areas dropped by as much as 10%.

The slump continued into the first quarter this year, a survey by the Royal Institution of Chartered Surveyors found that more agents than not reported price drops in March. London is now one of the five-slowest growing cities in the UK.

London property has for some time had many of the signs of a bubble. However, it is always very hard to pinpoint when a bubble might burst. We are certainly seeing signs that the overheated market is beginning to cool. Of course, all ‘good’ things must come to an end, but what is driving this particular scenario?

May 02 09:11

Congress' new spending bill includes $100M to counter Russian information operations

At least $100 million in funding specifically to counter Russian information operations will be available under a newly unveiled spending bill to keep the U.S. government running until the end of September.

May 02 09:09

45% OF AMERICANS SPEND UP TO HALF THEIR INCOME REPAYING CREDIT CARD DEBTS

On several occasions we've pointed out that the baby boomer generation is, to put it mildly, ill-prepared for retirement. In fact, over 50% of baby boomers have basically no savings set aside for retirement at all. Now, a new survey from Northwestern Mutual helps to shed some light on why Americans are completely incapable of saving money.

First, roughly 50% of Americans have debt balances, excluding mortgages mind you, of over $25,000, with the average person owing over $37,000, versus a median personal income of just over $30,000.

Webmaster's Commentary: 

Absoflippinglutely unbelievable!!

May 02 09:01

11 REASONS WHY US ECONOMIC GROWTH IS SO BAD

Those that were predicting that the U.S. economy would be flying high by now have been proven wrong. U.S. GDP grew at the worst rate in three years during the first quarter of 2017, and many are wondering if this is the beginning of a major economic slowdown. Of course when we are dealing with the official numbers that the federal government puts out, it is important to acknowledge that they are highly manipulated. There are many that have correctly pointed out to me that if the numbers were not being doctored that they would show that we are still in a recession. In fact, John Williams of shadowstats.com has shown that if honest numbers were being used that U.S. GDP growth would have been consistently negative going all the way back to 2005. So I definitely don’t have any argument with those that claim that we are actually in a recession right now. But even if we take the official numbers that the federal government puts out at face value, they are definitely very ugly…

May 02 08:45

Cloquet match mill to close; 85 to lose jobs

Cloquet’s match and toothpick factory is closing, and 85 people will lose their jobs there as a result, owner Newell Brands announced Monday.

The plant produces Diamond matches and toothpicks, a business that New Jersey-based Newell sold last month to Georgia-based Royal Oak Enterprises LLC. The new owners of the brand decided not to take the Cloquet operation with them.

“Newell Brands will no longer retain Diamond matches and toothpicks, which are manufactured at the facility,” according to a company statement. “As a result, the company has made the difficult decision to close the Cloquet facility, which is expected to occur within six months.”

May 02 08:45

Iran’s Economic Recovery Surprised Us All

“Generally speaking, America is not keen on independent countries. America is not keen on people’s freedom. America is keen on countries that completely surrender themselves.” – Iran’s Rouhani

May 02 08:37

Interns at these 25 companies make more than the median U.S. worker

According to a new report by the jobs site Glassdoor, the 25 best-paying companies for internships each pay their median summer worker more than $4,500 a month. That amount, if it was paid over the course of a full year, would be north of $54,000, exceeding the median annual pay for a U.S. worker, according to Glassdoor's own local pay reports ($51,350), and the annual figure calculated from the Bureau of Labor Statistics' latest weekly earnings data for full-time wage and salary workers ($44,460).

Topping the list was Facebook, where the median pay for interns is $8,000 a month, according to the reports from the newest analysis. That's $1,800 more than the $6,200 the social media giant reportedly paid interns when Glassdoor last issued its last highest paying internship report, in 2014. The next three were Microsoft (which pays a median $7,100 a month), ExxonMobil ($6,507) and Salesforce ($6,450).

May 02 07:49

$1 Trillion Time Bomb: Are American Consumers Getting in Trouble Again?

The economy depends on them, but they’re cracking.

May 02 07:34

Puerto Rico to File Largest Public Sector Bankruptcy in History

The U.S. territory made its last-ditch offer to try to avoid a May 1 bankruptcy filing, but failed to negotiate a financial restructuring that would force creditors to take a 23 percent loss on their general obligation bonds and a 42 percent loss on their Cofina sales-tax-backed debt, according to EMMA, the Municipal Securities Rulemaking Board website.

May 01 20:13

Why Germany Still Uses the Deutsche Mark

So the Brits aren't the only ones who lacked confidence in the EU Project from the start?

According to the 2012 source article, the Deutsche Mark is still in circulation in Germany to the tune of 13.2 billion DM, or roughly 6.6 billion in today's Euro assuming no more DM has been printed or destroyed. Born2Invest.com says that as of 2015, there are 12.9 billion DM in circulation [Coinmill.com will show you the exchange rate as of 5/2/2017].

Britain must have seen some problem with entering the Eurozone, so they kept the lb. as their currency. Did Germany see the same thing and keep the DM alive as a lifeboat?

Maintaining the DM as an exchangeable currency allows the Germans to circumvent a lot of legal ballyhoo if they leave the Eurozone. This is my theory for why the DM was never made defunct.

May 01 18:08

Martin Armstrong: Stocks could DOUBLE from here!

Martin discusses his views on the U.S. Dollar and the future of the European Union. Martin discusses his bullish case for U.S. stocks and considerations for international money flows. They discuss future interest rate trends, government debt, the geopolitics of North Korea and Syria and considerations on China and the debt crisis.

May 01 15:33

Tech Wreck Coming

Wall Street seems to be in the middle of a new bubble, even wilder than the last one.

In the bubble of the late 1990s, dot-coms with no proven ability to earn money sold equity worth billions of dollars.

Investors told themselves that the dot-coms would be hugely profitable. Most of them never were profitable at all. In March 2000, their stock prices collapsed.

May 01 13:49

Danielle DiMartino Booth: The biggest theft in all of human history?

Danielle DiMartino Booth joins Glenn to discuss why the Federal Reserve System is bad for America …The biggest theft in all of human history?

May 01 13:20

International Workers' Day: Profitable Work Will Be Automated, The Rest Will Be Left To Us

Everyone wants an abundance of "good paying" jobs, but employers can only afford to pay employees if the work being done is profitable.

What's abundant and what's scarce? The question matters because as economist Michael Spence (among others) has noted, value and profits flow to what's scarce. What's in over-supply has little to no scarcity value and hence little to no profitability.

May 01 12:45

CONFIRMED: OBAMA USED PROFITS FROM FANNIE AND FREDDIE MAE TO SUBSIDIZE OBAMACARE

This has been rumored to be true for a long time now. Independent investigators pondered as to where the Obama Administration found the money to keep Obamacare alive. The profits of both Fannie and Freddie Mae were widely suspected in having played a role. Now we know that it’s true, according to Sec. Mnuchin.

May 01 10:48

A Chinese Factory Slave Explains Why Manufacturing Jobs Are Never Coming Back To America No Matter What President Trump Says by Mac Slavo

While we all loved President Trump’s campaign pledge to bring jobs back to America, there are powerful economic forces at work that suggest the shift to cheap labor is pretty much irreversible. Yes, Trump has spoken with the leaders of some of America’s biggest companies and he’s been successful at getting those chief executives to commit to creating or keeping a few thousands jobs here and there, but when you consider that the competing foreign labor force primarily responsible for manufacturing America’s consumer goods numbers in the hundreds of millions of people, the notion that we’re somehow going to see explosive manufacturing growth over the next four or eight years is nothing more than a pipe dream.

But don’t take it from us. A Chinese factory worker explains exactly why we have absolutely no way to compete with the near slave-like conditions found in foreign factories:

Webmaster's Commentary: 

Some jobs are coming back, but many will not come back to the US, or if they do, will be handled by robots.

May 01 10:35

Ron Paul Warns "We Are In The Last Stages Of The Welfare-Warfare State"

Congress ended the week by passing a continuing resolution keeping the government funded for one more week. This stopgap funding bill was designed to give Congress and the White House more time to negotiate a long-term spending bill. Passage of a long-term spending bill had been delayed over objections to Republican efforts to preserve Obamcare's key features but give states a limited ability to opt out of some Obamacare mandates...[ZH: that longer-term bill has been agreed with the Democrats]

May 01 10:31

Economic Reality: Bottom 50% Of Americans No Longer Matter

As long as the Fed can keep stocks and home prices elevated, there is no concern about the food-stamp, rent-subsidized, Medicaid-supplement, disability-income, Obamacare-subsidized 50% of Americans struggling paycheck-to-paycheck.

That money rolls in guaranteed, month after month!

That 50% cannot afford a house is irrelevant as long as suckers keep paying $500,000 to two-bedroom shacks in LA.

The game is to keep asset prices up so that the top 50% keep spending. The bottom 50% are taken care of by government (taxpayer) subsidies noted above.

Here’s the real deal: Fed Expects a Second Quarter Rebound, Higher Equity Prices.

Repeat Performance

The Fed needs to keep asset prices elevated even though it’s pretty clear concerns are mounting over bubbles.

Can the Fed save the world again?

Previously, the bottom third did not matter. Then the bottom 40% did not matter. Now the bottom 50% do not matter.

May 01 10:04

Petrodollar Faces Growing Threat From the East. Payments in Gold Across Asia

While the recent raft of Sino-Saudi trade agreements benefited Chinese soft power in protecting Xinjiang, and the Saudis by diversifying their economy, China’s slow intertwining with Saudi Arabia complements the Sino-Russian alliance. Primarily, its benefits could lead to a realistic threat to the petrodollar.

The Persian rival who showed the way

In 2012/2013, the US Treasury Department, under the Obama administration, initiated a raft of sanctions in an amateurish fashion against the Central Bank of Iran. As we were told, it was done to tire and bleed Iranian economic and social life enough to draw Tehran into negotiations concerning its nuclear programme. The argument of were they/weren’t they pursuing a weaponized nuclear program isn’t important; how the Iranians circumvented these sanctions is.

Webmaster's Commentary: 

Is this why we are seeing more and more demonization of Iran, to prevent it from finding more loopholes in US sanctions, and trading in a real commodity, rather than the dollar, which has absolutely no real backing behind it?!?

May 01 09:47

The Numbers are Staggering: U.S. is ‘World Leader’ in Child Poverty

America’s wealth grew by 60 percent in the past six years, by over $30 trillion. In approximately the same time, the number of homeless children has also grown by 60 percent.

Financier and CEO Peter Schiff said,

“People don’t go hungry in a capitalist economy.”

The 16 million kids on food stamps know what it’s like to go hungry. Perhaps, some in Congress would say, those children should be working.

“There is no such thing as a free lunch,” insisted Georgia Representative Jack Kingston, even for schoolkids, who should be required to “sweep the floor of the cafeteria” (as they actually do at a charter school in Texas).

The callousness of U.S. political and business leaders is disturbing, shocking. Hunger is just one of the problems of our children. Teacher Sonya Romero-Smith told about the two little homeless girls she adopted:

“Getting rid of bedbugs, that took us a while. Night terrors, that took a little while. Hoarding food..”

Webmaster's Commentary: 

Absoflippinglutely unbelievable, and should be totally unacceptable to an allegedly civilised society!!

May 01 09:15

Ron Paul Warns “We Are In The Last Stages Of The Welfare-Warfare State”

The breakdown of the congressional appropriations process, combined with hyper-interventionism via the Federal Reserve and foreign policy, suggest we are in the last stages of the welfare-warfare state. Whether this system’s inevitable collapse completes our descent into authoritarianism or leads to a restoration of limited, constitutional government and free markets depends on how effective those of us who know the truth are in spreading the ideas of liberty.

May 01 08:53

ROTHSCHILD BANK NOW UNDER CRIMINAL INVESTIGATION AFTER BARON DAVID DE ROTHSCHILD INDICTMENT

Last year, Baron David de Rothschild was indicted by the French government after he was accused of fraud in a scheme that allegedly embezzled large sums of money from British pensioners.

It has taken many years to bring this case against Rothschild and his company the Rothschild Financial Services Group, which trapped hundreds of pensioners in a bogus loan scheme between the years of 2005 and 2008.

One by one the pensioners lost their money and pressed charges against the notorious banker, beginning a case that would take many years to get even an indictment.

In June, Paris-based liaison judge Javier Gómez Bermudez ruled that Rothschild must face a trial for his crimes, and ordered local police to seek him out in his various mansions that are spread throughout the country.

Webmaster's Commentary: 

By now, Baron David de Rothschild is probably living it up in yet another mansion he owns, in a country which does not have an extradition treaty with France.

May 01 08:45

Venezuela's Maduro Arms Loyalists To PURGE Opposition! - THIS Is Why The Second Amendment Exists!

Josh Sigurdson reports as Nicolas Maduro, Venezuela's socialist dictator arms his loyalists in the Bolivarian Militia to purge opposition.
In recent months, Maduro has had his opposition in government imprisoned, while millions hit the streets and riot. The people of Venezuela have been forced into bread lines as hyperinflation grips the country due to massive currency printing, devaluation and debt.

May 01 08:43

THIS IS WHAT A BANK RUN LOOKS LIKE: HOME CAPITAL LOSES 70% OF DEPOSITS IN ONE WEEK

In the beginning it was a slow pace, then it became a casual jog. Then, starting early last week, the jog morphed into a full-blown run, and - as of the past 3 days - the withdrawal of deposits at Home Capital Group's high interest savings accounts has mutated into a full blown mad dash not to be the last person to have their money at what is now an effectively insolvent alternative lender.

According to HCG's latest press release this morning, the "less than prime" Canadian mortgage lender held HISA deposits of only $391 million as of Monday, May 1; this is down C$130 million from Friday, or a reduction in the total amount by 25%. It is also down 72% from the C$1.4 billion reported one week ago.

For those who need to think all the way back to the third Greek bailout of 2015 to recall what a bank run looks like, here is what the deposit situation at HCG has looked like over the past month.

Webmaster's Commentary: 

This may well be the proverbial "canary in the the coal mine" for other lending institutions in Canada, and may be the start of a contagion which cannot be contained.

May 01 08:35

The Trump Tax Plan: More Money for the Oligarchs

In presenting the administration’s tax plan at a White House press briefing on Wednesday, Trump’s top economic advisers, Gary Cohn (net worth $610 million) and Steven Mnuchin ($500 million), both former Goldman Sachs bankers, could barely contain their glee over the prospect of a massive transfer of wealth to themselves and their fellow oligarchs.

Webmaster's Commentary: 

Trump's tax plan is merely re-arranging the deck chairs on the Titanic. Unless the wealth is recycled from the top back down to the working and middle class for them to pour back into the economy, the economy, already down by the bow and taking water, is doomed!

May 01 08:27

Economic Reality: Bottom 50% Of Americans No Longer Matter

The Fed likes to brag about the “We saved the world” recovery. However, the unfortunate truth of the matter is a record Half of American Families Live Paycheck to Paycheck. Does it Matter? Let’s investigate.

May 01 08:12

Future World Economic Growth In Big Trouble As Oil Discoveries Fall To Historic Lows

Future global economic growth is in serious trouble as oil discoveries fell to historic lows last year. The International Energy Agency (IEA) reported that the sharp downturn in capital spending by the conventional oil industry was due to extremely low oil prices.

As the oil price fell to $30 in 2016, oil companies cut their exploration and capital expenditures by 25-40%. For example, ExxonMobil, the largest oil company in the United States, cut their capital expenditures by 26% in 2016, from $26 billion in 2015 to $16 billion last year. This had a profound impact on new oil discoveries.

May 01 07:47

A Tax Cut Big Enough To Save the Economy (May kill it instead, says Peter Schiff)

Donald Trump has made good on one of his most audacious campaign promises by submitting what he describes as the biggest tax cut in U.S. History. For once, at least, this does not appear to be Trumpian braggadocio. It really may be the mother of all tax cuts. But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn’t like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.

May 01 07:20

BILLIONAIRES SET TO DESCEND UPON BEVERLY HILLS TO ASSESS THE TRUMP PRESIDENCY

Back in the early 90’s, Michael Milken was in prison for securities fraud. Now he’s on top of the world again — hosting, for the 20th year, a very high brow conference for the elite. This week, the Milken Institute Global Conference will host 4,000 of the wealthiest and most influential people in the world. Amongst Trump’s representatives include Treasury Sec Mnuchin, Commerce Sec Wilbur Ross, Education Sec Betsy Devos and Sec of Transportation Elaine Chao.

May 01 05:27

It Is Becoming Illegal To Be Homeless In America As Houston, Dallas And Dozens Of Other Cities Pass Draconian Laws

Should we make homelessness against the law and simply throw all homeless people into prison so that we don’t have to deal with them? Incredibly, this is actually starting to happen in dozens of major cities all across the United States.

May 01 05:06

ROTHSCHILD BANK NOW UNDER CRIMINAL INVESTIGATION AFTER BARON DAVID DE ROTHSCHILD INDICTMENT

Last year, Baron David de Rothschild was indicted by the French government after he was accused of fraud in a scheme that allegedly embezzled large sums of money from British pensioners. It has taken many years to bring this case against Rothschild and his company the Rothschild Financial Services Group, which trapped hundreds of pensioners in a bogus loan scheme between the years of 2005 and 2008.

May 01 05:05

ARE AMERICAN DEBT SLAVES GETTING IN TROUBLE AGAIN?

American consumers are holding $1 trillion in revolving credit, mostly in credit card debt. So how well is this segment of consumer debt holding up? Synchrony Financial – GE’s spin-off that issues credit cards for Walmart and Amazon – disclosed on Friday that, despite assurances to the contrary just three months ago, net charge-off would rise to at least 5% this year. Its shares plunged 16% and are down 27% year-to-date.

Apr 30 22:06

Trumps Tax plan, reduces part-time slavery

Why on earth would you want more money to be taken away from production and given to destruction? Giving more money to government does not hep the poor. It's stealing form one guy to murder another one so of course liberals love it.

Apr 30 19:40

Trump's trillion dollar deal: Congress agrees to spend $15bn more on the military and $1.5 billion on enhanced border security - but no border wall - in spending bill to avoid shutdown

Top Capitol Hill negotiators reached an agreement on a huge $1 trillion-plus spending bill that avoids a government shutdown, aides said on Sunday.

The deal means virtually all the day-to-day-operations of the federal government will be funded until September.

Apr 30 17:02

Blow to savers as Premium Bond prizes are slashed by £7m

National Savings & Investments has axed an estimated 48,000 prizes this month, while cutting more than £7million from its prize pot.

Two £1million prizes remain but the estimated number of £100,000 prizes is set to fall, alongside the £25,000 and £10,000 prizes.

The biggest change will be the reduction in £100 and £50 prizes which will be slashed by two-thirds.

Apr 30 16:58

Scandal of £15M taxpayers’ cash WASTED in anti-smoking classes in CORRUPT countries

A FRESH foreign aid row erupted yesterday after it emerged that Britain was paying for anti-smoking classes in some of world’s most corrupt countries.

In a move branded “astonishing”, the Department of Health is giving £15million in taxpayers’ money to a host of regimes with appalling human rights records. Critics said taxpayers’ cash was being “handed out like confetti” at a time the NHS faced the worst funding crisis in its history.

The money will go to countries where political unrest is rife as part of the foreign aid budget.

Those set to receive the antismoking cash include Cambodia, Chad, Colombia, Egypt, El Salvador, Georgia, Jordan, Madagascar, Myanmar [Burma], Nepal, Samoa, Sierra Leone, Cabo Verde, Sri Lanka and Zambia.

Apr 30 12:42

Economy “Surprises” to Downside, Growth Near Zero. Atlanta Fed GDPNow Forecast just about Nailed it

Lousy consumer spending & the “weather.” Inflation hits Fed target.

The US economy surprised economists to the downside once again, a terrible habit it has picked up over the past years. GDP adjusted for inflation inched up only 0.7% “compound annual rate of change.” This means that if the economy keeps growing at this rate for four quarters in a row, economic growth for the entire year would only be 0.7%.

Apr 30 09:51

Panic bank run leaves Canada’s largest alternative mortgage lender on edge of collapse

After two years of recurring warnings (both on this website and elsewhere) that Canada’s largest alternative (i.e., non-bank) mortgage lender is fundamentally insolvent, kept alive only courtesy of the Canadian housing bubble which until last week had managed to lift all boats, Home Capital Group suffered a spectacular spectacular implosion last week when its stock price crashed by the most on record after HCG revealed that it had taken out an emergency $2 billion line of credit from an unnamed counterparty with an effective rate as high as 22.5%, indicative of a business model on the verge of collapse .

Apr 30 09:24

Mike Maloney - Bond, Stock and Real Estate Markets Are Insane, China, Russia & India Buying Gold

Precious metals expert Mike Maloney points to what large foreign countries are buying and it gold--lots of it. Maloney explains, says, “Between Russia, China and India, their purchases meet or exceed all worldwide production of gold. Whenever they exceed mining supply, the supply has to come from somewhere, and it’s coming from the West. When the dust settles, the East is going to be very wealthy, and the West is going to be poor.”

Apr 30 06:47

The Fed Goes All In To Crash The Economy

South Korea goes cashless, they are getting rid of coins. Consumer confidence steady despite all the bad news. US spending way down, this makes up 70% of the economy, but American's are buying RV's.

Apr 30 06:32

Great Again? GDP Growth Slows as the Donald Runs into Reality

Looking back on his first 100 days in office, President Trump is realizing that the reality of running the world’s largest economy, biggest and baddest military, and likely most politically divided country in the world right now is much more of a headache than he imagined on the campaign trail.

Apr 29 15:09

The Confidence Game – The Next Crisis

Apr 29 09:14

The High U.S. China Trade Deficit; Does This Indicate A Deformed Trading Relationship Between U.S. And China?

A trade deficit occurs when an economy imports more than it exports. If this persists, it will eventually cause a shift in the exchange rate, making imports more expensive and–crucially–exports cheaper as the "invisible hand" of the price mechanism brings trade back into balance.

Apr 29 08:31

Donald Trump says he's avoided New York City because it's expensive for US

President Donald Trump says he hasn't returned to his New York City home because "going back is very expensive for the country."
Trump tells Fox News in an interview Friday that he feels "guilty" when he returns to Trump Tower because authorities close surrounding streets and "I hate to see the New Yorkers with streets closed."

Apr 28 21:07

Trump tough on South Korea: Threatens to terminate free trade deal, wants payment for THAAD missile defense system

President Donald Trump said that he will either renegotiate or terminate a "horrible" trade deal with South Korea, Reuters reported late Thursday.

The president also said he wants South Korea to pay for the $1 billion THAAD missile defense system, Reuters said.

Responses to Trump's comments soon arose, with an official from South Korea's automakers association telling Reuters that the group is now concerned about "the uncertainty" of the free trade agreement.

Shares in Hyundai Motor fell as much as 2.4 percent following Trump's comments. South Korea's won turned weaker on the comments.

Apr 28 17:03

Former Central Banker Just Signaled That The Economy Is About To Crash

The Canadian housing market is popping their is already a bailout to save a mortgage company. Initial jobless claims inch up. Consumers are tapped out, credit defaults on the rise. P

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