ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jun 27 16:34

Papahanaumokuakea Review Spurs Tension With Conservation Groups, Fisheries

I want to hear Mike say that on the show tomorrow!

HONOLULU (CN) – President Donald Trump’s targeting of the Papahanaumokuakea Marine National Monument in the northwest Hawaiian Islands for national review has revived a lopsided debate between Native Hawaiians, senators, scientists and conservation groups in favor of the monument’s designation, and an activist fishery council mainly concerned with “maximizing longline yields.”

Jun 27 15:44

It is all about the banks yet again

If there is a prime feature of the credit crunch in the financial world it is the woes and travails of the banks. That is quite an anti-achievement when you consider that if you count from the first signs of trouble at the mortgage book of Bear Stearns we are now in out second decade of this period having lost one already.

Jun 27 15:29

This is why millennials are fat and broke

Jun 27 15:27

If We Don't Change the Way Money Is Created, Rising Inequality and Social Disorder Are Inevitable

Centrally issued money optimizes inequality, monopoly, cronyism, stagnation and systemic instability.

Jun 27 15:19

Stock Speculators Take Record Risk On Continued Calm

Speculators in VIX futures are presently holding their largest net-short position ever.

Jun 27 14:31

WHEN THIS MASSIVE BUBBLE POPS… What Will Happen To The Precious Metals?

As the Mainstream financial media continues to promote the biggest market bubble in history, only a small fraction of investors are prepared for the disaster when it finally POPS.  The markets are so insane today, it seems as if fundamentals don’t matter any more.  However, they actually do if we look at the numbers closely.

Jun 27 14:13

Even The Fed's Indicators Just Collapsed, This Is Not Good

Because of austerity Greece is feeling the pain of a garbage problem, the workers have gone on strike and want the government to give them full employment, meanwhile the garbage is piling up.

Jun 27 13:45

Italy’s newest bank bailout cost as much as its annual defense budget

Two more Italian banks failed over the weekend– Banco Popolare di Vicenza and Veneto Banca.

(In other news, the sky is blue.)

Jun 27 11:08

Treating homes like ATMs is back in fashion: Home Equity Withdrawals rising at fastest pace since Great Recession.

I love getting tips from Uber drivers especially when it comes to buying real estate. We are now back at that level where real estate can do no wrong, the house humpers are confusing luck with investment acumen, and of course the sheep dive in head first at the most frothy time. It is clear that we are in a mania and hot money is flowing everywhere. Credit card offers are soaring and lending is booming across all areas: credit cards, auto loans, student debt, and housing. With housing, we are now seeing one of our favorite past-time events in treating a home like an ATM. Home equity withdrawals are now moving up in a direction that is not exactly positive if you believe in actually keeping your equity locked in instead of cementing your belief in the bubble and adding more debt. You do need to pay those loans back by the way which many tend to forget. Home equity withdrawals are simply one of the final steps in the delusional mania.

Jun 27 10:38

House Armed Services Committee Unveils $696.5 Billion Military Spending Bill

Just days after committee chair Mac Thornberry (R – TX) announced his intention to unveil a $640 billion military spending bill, the House Armed Services Committee actually unveiled a $696.5 billion bill, which you’ll notice is quite a bit more, but which is also being presented as a “cut” from the previous announcement.

The imagined cut is based on the idea that the $640 billion would’ve added quite a bit of funding for Overseas Contingency Operations (OCO), and the new bill already includes $75 billion in OCO, which they’re presenting as meaning the bill is only $621.5 billion, despite the OCO money being very real, and also including substantial amounts that’ll be spent on things not related to overseas operations.

Webmaster's Commentary: 

This government does not necessarily need to spend more money; they need to spend money for our military more intelligently.

This should translate into the death of cost over-runs which are absorbed by taxpayers; the ending of problem-plagued programs like the F-35, with the companies like Lockheed Martin absorbing the costs of their failures, after a certain point, from corporate funding, and not taxpayers' funding.

The failure of weapons to perform as advertised should be treated as a form of corporate treason against this country.

Please don't get me wrong; as a Christian pacifist activist, who is constantly exhorting her government to use hard-won, moral negotiations as the way to resolve geopolitical disputes, I abhor war as a methodology for resolving disputes.

That being said, if the civilian leadership is going to use war to pursue its aims, our military deserve weapons that work. China and Russia are spending far less on their military outlays, but are winding up with weapons which do, and will work, very efficiently.

Jun 27 10:12

YouTube Busted Profiting Off of Pedophilia Videos While Censoring Alt-Media

On Sunday, we pointed our readers’ attention to Seven Super Girls, a channel of videos created by kids, for kids — so so goes the facade. The only problem with the channel is it’s incredibly exciting to pedophiles — and seems to be geared that way intentionally — something we documented thoroughly.

Compounding problems for Youtube, its selective censorship of far-right, far-left, and alt-media organizations has created an Us versus Them atmosphere where content creators often feel they’ve been discriminated against, simply because someone flagged their content.

Jun 27 09:37

Kremlin spokesman says Putin and Trump will meet in Hamburg

No specific decisions have been made yet concerning the upcoming meeting between Russian President Vladimir Putin and his US counterpart Donald Trump due in Hamburg, Kremlin spokesman Dmitry Peskov told reporters.

Webmaster's Commentary: 

This meeting cannot possibly come soon enough.

However, if President Trump is persuaded by his advisors to "stiff" Putin at the G-20, all hell could break loose in this world, in terms of a US war against Syria and Iran (which means, potentially, war with Russia) and I really would not like to see that happen.

Jun 27 09:30

Great recession fears as bankers warn next global crash could arrive 'with a vengeance'

A new financial crisis is brewing in the emerging economies and it could hit “with a vengeance”, an influential group of central bankers has warned.

Emerging markets such as China are showing the same signs that their economies are overheating as the US and the UK demonstrated before the financial crisis of 2007-08, according to the annual report of the Bank for International Settlements (BIS).

Claudio Borio, the head of the BIS monetary and economic department, said a new recession could come “with a vengeance” and “the end may come to resemble more closely a financial boom gone wrong”.

The BIS, which is sometimes known as the central bank for central banks and counts Bank of England Governor Mark Carney among its members, warned of trouble ahead for the world economy.

It predicted that central banks would be forced to raise interest rates after years of record lows in order to combat inflation which will “smother” growth.

Webmaster's Commentary: 

IF you can, please get your credit card balances as low as you can, because I can see a massive interest hike coming out of any global economic crisis which might be coming.

Jun 27 09:29

Trump's ANWR Move Could Spawn Epic Oil, Natural Gas Battle

President Trump has uncorked yet another controversy over energy vs the environment and it promises to be a heavyweight battle.

The White House budget proposal includes a revenue line of almost $2 billion from selling oil and gas leases in the richly oil-prospective northeastern coastal plain of the Arctic National Wildlife Refuge (ANWR) in Alaska.

Until the climate change debate came along, leasing and drilling in the ANWR (pronounced an-war) Coastal Plain was arguably the most ferociously contested item on the oil and gas industry’s wish list at the national level.

Jun 27 09:29

James Rickards: The Fed Is Going To Cause Recession

James Rickards, author of “The Road to Ruin,” has successfully predicted Federal Reserve (Fed) policy in the past. In this interview with The Epoch Times, he explains why the recent tightening could lead to a recession and why he recommends gold as a “crisis hedge.” He also explains why he thinks bitoin is in a bubble.

Jun 27 09:09

Central Banks Buying Stocks Have Rigged US Stock Market Beyond Recovery

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working because they have become the banks that are too big to fail. At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.

Jun 27 08:37

The Ultimate Regulatory Reform: Abolish Fractional Reserve Banking!

The Trump Administration has presented the first part of its plan to overhaul a number of Wall Street financial regulations, many of which were enacted in the wake of the 2008 financial crisis. The report is in response to Executive Order 13772 in which the US Treasury Department is to provide findings “examining the United States’ financial regulatory system and detailing executive actions and regulatory changes that can be immediately undertaken to provide much-needed relief.”*

Jun 27 07:52

Merkel and Trump braced for G20 clash: Germany to make free trade demands

ANGELA Merkel and Donald Trump are on a collision course over free trade, the global steel industry and Washington’s decision to pull out of the Paris climate deal.

Jun 27 07:45

Robert Soros Steps Down As President Of Soros Family Office

Robert Soros, 53, the eldest of George Soros' five children and currently deputy chairman and president of Soros Fund Management, is resigning from those roles and stepping down from day-to-day management to invest his own money at the $26 billion family office according to Bloomberg, which adds that Robert will remain an owner at the firm where he has worked in various investment and management roles for more than 20 years, and will continue to be involved in its strategic long-term planning.

Jun 27 07:39

The Rising Cost of Senior Care in America

The costs related to senior care continue to climb, but with more options available, the process is becoming more manageable. The trend toward a more customized senior assisted experience is shifting from the nursing home or assisted living facility, toward stay at home care.

Jun 27 06:57

American spies use US Federal Reserve to monitor foreign banks

American intelligence services have made use of a little-known confidentiality exception to spy on the financial activities of foreign banks who have accounts with the United States Federal Reserve, according to Reuters. Established in 1913, the Federal Reserve System is the central banking structure of the US. It oversees and regulates the nation’s financial institutions, and is tasked with —among other things— maintaining the stability of the American financial system.

Jun 27 05:35

Here’s Why Cheap Gas Prices May Actually Be a Very BAD Sign for the Economy

You may have filled up with gas recently and did a little happy dance when you saw how low the price was...but this may not be a good sign for our economy.

In fact, it could be downright BAD NEWS. Here's why.

Jun 26 15:53

The Federal Government Owns 61 Percent Of Idaho, 64 Percent Of Utah And 84 Percent Of Nevada

Did you know that the federal government owns 28 percent of all land in the United States? 

Jun 26 15:34

Central Banks Buying Stocks Have Rigged US Stock Market Beyond Recovery

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working because they have become the banks that are too big to fail.

Jun 26 15:28

Don’t Renegotiate NAFTA: Get US Out!

Jun 26 15:20

The Collapse Of Brick-And-Mortar Retail Becomes A Real-Estate Question

Caught up in the middle of the brick-and-mortar retail meltdown, Macy’s announced wave after wave of store closings. The 100 store closings it announced in August 2016 included Macy’s Men’s store in San Francisco and its store at Stonestown Galleria in San Francisco. Macy’s owned the buildings of both of them. This brought Macy’s store count in San Francisco from three to just one store.

That’s how bad the meltdown is!

Jun 26 15:07

The Banana Republic of Illinois

Jun 26 14:42

"The Dollar Is Not A Safe Haven" - Jim Rogers

Jun 26 13:42

Worst Crash In Our Lifetime Coming – Jim Rogers

Legendary investor Jim Rogers sat down with Business Insider CEO Henry Blodget on this week’s episode of “The Bottom Line.”

Rogers predicts a market crash “later this year or next …. write it down.” Rogers say the crash will rival anything he has seen in his lifetime.

Jun 26 12:34

Seattle's $15 minimum wage says it Costs Jobs

SHOCKER!

PLUS
caused a 9 percent reduction in hours worked,

that's a loss of about $125 per month, the study said.

Jun 26 12:07

Illinois is about to Declare a State of Bankruptcy and SEIZE all state pension funds

just as the Health Ranger repeatedly warned for the last year

Jun 26 11:42

The Collapse Will Be Driven By A Credit Collapse, Has The Date Been Set?

Corporations are now looking at block-chain technology. Visa, Microsoft and many others are turning towards the crypto world while the corporate media and the banking community will begin to tell you how bad the block-chain is.

Jun 26 09:48

Jim Rickards: Get ready for quantitative tightening

The Federal Reserve is now setting out on a new path for quantitative tightening (QT) after nine years of unconventional quantitative (QE) easing policy. It is the evil twin of QE which was used to ease monetary conditions when interest rates were already zero.

Jun 26 08:58

Has Washington Lost the Middle East After Qatar?

For more or less the past Century, since 1914, the world has been almost continuously at war over control of oil. Gradually with the adoption of clean energy policies in the European Union and most especially in China’s agreeing to significantly cut CO2 emissions by reducing coal generation, itself a political act not a scientific one, as well as advances in natural gas transport technologies, notably in the liquefaction of natural gas or LNG, natural gas has finally become a globally traded market as is oil. With this development, we now are in an era not only of wars for control of major oil reserves around the world. Now we have the dawn of the age of natural gas wars. Fasten your seatbelts, ladies and gentlemen.

Jun 26 08:29

Goldman Sachs: Oil Crash Unlikely To Continue

The current selloff in energy stocks is but an opportunity for buyers, according to a Thursday note from Goldman Sachs’ European energy team, who added that current prices are likely unsustainable in the long run.

“We…see the sell off as an attractive buying opportunity in our favored stocks, including Total and Lundin, whilst we have also started to see investor interest in higher beta stocks that have sold off such as Tullow,” said Goldman.

Jun 26 08:29

CENTRAL BANKS BUYING STOCKS HAVE RIGGED US STOCK MARKET BEYOND RECOVERY

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working because they have become the banks that are too big to fail. At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.

Brian Rich, writing for Forbes, describes the economic illusion created by central banks buying stocks during a time of presidential prosecution:

Webmaster's Commentary: 

Every single writer on the economy I respect has made the observation that we are headed for a severe market correction; the question is not if, but when.

Jun 26 08:25

A List of Assassinated Leaders Who Had Opposed the Creation of Money “Ex Nihilo”

(Michael Rivero, who lives in Hawaii, created a video that would put a stop to war right now if people would watch it. It is called “All wars are bankers wars“. It is time now for everyone to give up their innocence and see what has been going on — namely, any leader who stood in the way of private central bankers, landed up being killed. Much of this article is a condensed adaptation.)

I had dinner with a banker last week. I tried to get him to explain how money was created — but he insisted that money was not printed out of thin air.

Then what about the Fed’s Quantitative Easing? I asked. But he had an answer for everything. I felt bamboozled.

Consider another banker, Sir Joseph Stamp. He was the President of the Bank of England in the 1920s, and the second richest man in Britain. He said:

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.“

Jun 26 08:05

The Final Straw: Germany Mulling Over Sanctions… This Time Against the US

It appears that the US-EU "geopolitical marriage" is bursting at the seams due to the irresponsible foreign strategy of the US political elite, Russian economist Ivan Danilov wrote for RIA Novosti, revealing what could become the final straw for the long-lasting trans-Atlantic union.

Jun 26 08:04

New York's "Billionaires Row" Suffers Biggest Foreclosure In History

In the latest sign that NYC’s ultra-high end property market is on the verge of imploding after a wave of overly aggressive development, another luxury condo at Manhattan’s One57 tower, a member of “Billionaire’s Row,” a group of high-end towers clustered along the southern edge of Central Park, has gone into foreclosure - the second in the span of a month.

The 6,240-square-foot (580-square-meter) full-floor penthouse in question, One57’s Apartment 79, sold for $50.9 million in December 2014, making it the eighth-priciest in the building.

“It’s probably the most-expensive foreclosure we’ve ever seen in luxury development,” said Donna Olshan, president of high-end Manhattan brokerage Olshan Realty Inc. “I don’t know of a foreclosure that’s larger than that.”

Jun 26 07:25

CHART: A warning sign in energy stocks

Energy investors are making a big mistake…

They’re “bottom fishing” in the major oil and gas stocks… trying to catch the bottom.

Jun 26 07:22

First India Bans Cash, Now It's Targeting Gold

"There you have it. The cashless agenda of control laid bare. There shall be no economic activity outside of State control. Cartels that play nice will be rewarded with more market share... It remains to be seen if an already angry Indian citizenry can be persuaded to gift up their tradition of storing and gifting gold."

Jun 26 07:02

Italy to wind up two failing banks at potential cost of €17bn

The Italian government is stepping in to wind up two failing lenders and prevent a bank run, at a total cost of up to €17bn (£15bn).

After an emergency cabinet meeting on Sunday, ministers agreed to a decree splitting Veneto Banca and Banca Popolare di Vicenza into ‘good’ and ‘bad’ banks, keeping branches open.

The ‘good’ assets are being acquired by Italy’s biggest retail bank, Intesa Sanpaolo, with the Italian government handing about €5bn to Intesa as part of the deal.

The lenders will then be liquidated, which leaves the state footing the bill for bad loans on both banks’ books, plus restructuring costs.

Jun 26 07:00

Next global financial crisis to hit with a 'vengeance', warns BIS

The global economy is caught in a permanent trap of boom-bust financial cycles. This deformed structure is becoming ever more corrosive and dangerous as debt ratios rise to vertiginous levels, the world's top monetary watchdog has warned.

The Bank for International Settlements said the rot in the global monetary system has not been cut out since the Lehman crisis in 2008.

The current ageing and unstable cycle could finish in much the same explosive way, contrary to the widespread belief that it was a once-in-a-century event caused by speculators.

“The end may come to resemble more closely a financial boom gone wrong, just as the latest recession showed, with a vengeance,” said Claudio Borio, the BIS’s chief economist.

Jun 26 06:58

Gold Flash Crashes As "Someone" Dumps $2 Billion, "Fat Finger" Blamed

Shortly after 4am EDT, as the European market was warming up for trading, Gold suddenly plunged $12, or 1%, to $1,242 an ounce, on a surge in volume with 18k contracts, or just over $2 billion notional, trading in a one-minute window; as of 9:20am London, volumes running around 150% of recent averages. As so often happens, the gold plunge dragged silver down with it as well.

Jun 26 06:51

RIPPED OFF AGAIN: EU splurges on building projects...and guess how much Britain's getting?

BRITAIN was yet again on the wrong end of an EU funding decision today as it emerged the country will barely benefit at all from a £2.4 billion Brussels splurge designed to upgrade the continent’s infrastructure.

A pathetic £3.3 million - just 0.14 per cent of the project’s entire budget - has been set aside by eurocrats to pay for upgrades to the crumbling transport network in the UK.

The decision means that once more Britain has been ripped off compared to its European partners despite the fact that UK taxpayers will stump up an astonishing £290 million for the scheme.

Jun 26 05:43

A Stock Market Crash Scenario

When these conditions are met, the Crash-o-Meter pegs the upper limit of vulnerability...

Jun 25 10:00

The Breakout Of The Decade?

Jun 25 09:09

Chicago Police Pension Goes Bust

Jun 25 07:44

Gerald Celente - War & Financial Calamity Two Biggest Trends; Iran, Oil or Tech Could Sink the Economy

Trends forecaster Gerald Celente thinks the economy is so weak that it must be propped up by massive fraud, and that means any black swan can sink this economic scam overnight. Celente contends, “It’s over, it’s over and that’s why gold is the ultimate safe haven to me.”

Jun 25 07:39

All Roads Lead to the Bubble-City Danger Zone

Jun 25 05:15

TWO ITALIAN ZOMBIE BANKS TOPPLED FRIDAY NIGHT

When banks fail and regulators decide to liquidate them, it happens on Friday evening so that there is a weekend to clean up the mess. And this is what happened in Italy – with two banks!

It’s over for the two banks that have been prominent zombies in the Italian banking crisis: Veneto Banca and Banca Popolare di Vicenza, in northeastern Italy.

The banks have combined assets of €60 billion, a good part of which are toxic and no one wanted to touch them. They already received a bailout but more would have been required, and given the uncertainty and the messiness of their books, nothing was forthcoming, and the ECB which regulates them lost its patience.

In a tersely worded statement, the ECB’s office of Banking Supervision ordered the banks to be wound up because they “were failing or likely to fail as the two banks repeatedly breached supervisory capital requirements.”

Webmaster's Commentary: 

The Euro itself is set to fall and fail; it not a matter of if, but when.

Jun 25 05:12

FLIMSY EVIDENCE AND FRINGE SOURCES LAND PEOPLE ON SECRETIVE BANKING WATCHLIST

A CORPORATE DATABASE used by banks and other institutions to screen clients for crimes such as money laundering and terror financing has labeled dozens of U.S. citizens as connected to terrorism on the basis of outdated or unsubstantiated allegations. An analysis of a 2014 copy of the database, which is known as World-Check, also indicates that many thousands of people, including children, were listed on the basis of tenuous links to crime or to politically prominent persons.

The database relied on allegations stemming from right-wing Islamophobic websites to categorize under “terrorism” people and groups like the Council on American-Islamic Relations, several mosques, and national and regional Islamic organizations.

Jun 24 20:43

MoD spends £44m a year renting empty homes across the UK

THE Ministry of Defence is spending more than £44million a year renting thousands of properties across Britain that stand empty.

Officials say it needs to keep homes available for servicemen and women with families returning from overseas postings, such as in Germany.

But nearly half of the properties – 4,623 – have been empty for more than 12 months.

They include 85 in the constituency of Foreign Secretary Boris Johnson, in Uxbridge, west London, which have stood vacant for 20 years.

Jun 24 14:49

America’s Unfolding Pension Crisis

Jun 24 14:20

First India Bans Cash, Now It’s Targeting Gold

By Jeff Paul

In November of last year, India banned certain cash notes in a bold move to force businesses into the banking system to better harvest more taxes from its livestock. Now, under the guise of “improving transparency” and forming a “common market,” India has begun targeting gold with new taxes, regulation, and incentives for citizens to turn over their undeclared gold to the financial sector...

Jun 24 09:05

IT’S THE BANKSTERS, STUPID

It’s something Americans should have figured out after the last financial crisis. The source of their misery stems from the policies of the Federal Reserve and international bankers. As usual, though, the establishment media has diverted attention elsewhere and the financial class of modern robber barons continues its pathological looting and will do so until the bottom falls out of the economy.

“While politics in the West reels from a decade of economic crisis and stagnation, asset prices continue to surge on the back of continued rapid growth in G3 QE,” writes Albert Edwards. “In an age of ‘radical uncertainty’ how long will it be before angry citizens tire of blaming an impotent political system for their ills and turn on the main culprits for their poverty—unelected and virtually unaccountable central bankers? I expect central bank independence will be (and should be) the next casualty of the current political turmoil.”

Jun 24 07:00

Chicago Police Pension Goes Bust

Jun 23 16:46

As Oil Drops, Saudi Stocks…Soar?

Despite the rout in oil prices, the technical setup of the Saudi Arabian stock market (again) correctly foretold a rally.

Jun 23 15:31

Court Rules UK Government Acted Illegally In Blocking Israel Boycott

The judgment also declared that "anti-Israel and pro-Palestinian campaigning is not in itself anti-Semitic"

Jun 23 15:00

The Fed Is Now Preparing For The Next Economic Crisis, Here's How

Sears Canada decided to announce that it will be declaring bankruptcy, approximately 3000 people will lose their jobs. Warren Buffett steps in and purchases Home Capital Group, big surprise since they were on the verge of collapsing.

Jun 23 13:59

The canary in the asset bubble is popping: $3.8 trillion bubble that you are probably not aware of.

The death of retail as we know it is real. People are shifting their buying habits online in a fast and furious way. The only retail outlets that seem to be thriving are dollar stores but they are thriving because many Americans are living paycheck to paycheck and online shopping is too expensive for some. So it should come as no surprise that the way things were once done is being upended again by technology. Giants like Amazon and Wal-Mart are cannibalizing entire industries. Back in 2012 Amazon had less than 10 million Prime subscribers. Today it is over 80 million. So the big bubble that is now imploding is that in commercial real estate. There is $3.8 trillion in commercial real estate loans outstanding and the bubble in this market couldn’t be peaking at a worse time.

Jun 23 13:58

RETAIL HELL: 5,300 Stores have CLOSED this year

Jun 23 13:34

Will China Debt Balloon Crash Its Economy?

Jun 23 13:24

Does SOCIALISM work? Let's put this to rest. Don't take my word for it. Watch this Brazilian reporter answer that question!

Socialism works for the first few years. Then, you run out of money and it all goes to hell.

Jun 23 12:54

Canary In The Coal Mine: Unfunded Liabilities Have Turned Illinois Into A “Banana Republic” On The Brink Of Bankruptcy

Illinois is the perfect example of what happens when your state is run by fiscally irresponsible dunces for decades. The state is buried debt, and hasn’t passed a budget in over 700 days. 100% of their monthly revenue is being consumed by court ordered payments, and the Illinois Department of Transportation has revealed that they may not be able to pay contractors (who are working on over 700 infrastructure projects) after July 1st if the state doesn’t pass a budget. To top it all off, the state’s credit rating is one step away from junk status, the lowest of any state. Because of these factors, Illinois may become the first state to declare bankruptcy since the Great Depression.

Governor Bruce Rauner has gone so far as to call his state a “banana republic.”

The state’s comptroller has admitted that “We are in massive crisis mode.”

Jun 23 12:29

Saudi Reshuffle Could Completely Shake Up Oil Markets

The new crown prince is known to be a bit unpredictable. In the early phase of the oil price meltdown, he said that prices did not matter. But the plunge below $30 per barrel in early 2016 seemed to have changed the calculus. Last year Saudi Arabia became the principle driver behind a return to “market management,” that is restraining output to stabilize prices.

The IPO is another signature initiative of the young prince. He hopes to sell off 5 percent of Aramco, which he argues could raise around $100 billion (some analysts dispute that figure) in order to finance his Vision 2030, which calls for a diversification of the Saudi economy. The elevation of Mohammed bin Salman is being interpreted in some corners as an effort to accelerate this economic transformation. With low oil prices, a sizable budget deficit, large but dwindling cash reserves, and a restive and young population, time is of the essence.

Webmaster's Commentary: 

I hate the characterisation of war between Saudi Arabia and Iran as "inevitable", but in light of the fact that the US has now "thrown its hat in" with the House of Saud, courtesy of President Trump's recent visit to Riyadh, and his own virulently anti-Iran, pro-Israel stance, I am afraid that characterisation is absolutely correct.

Jun 23 12:22

McDonalds Is Replacing 2,500 Human Cashiers With Digital Kiosks: Here Is Its Math

The stock market is luvin' McDonalds stock, which has continued its recent relentless rise to all time highs, up 26% YTD, oblivious to the carnage among the broader restaurant and fast-food sector. There is a reason for Wall Street's euphoria: the same one we discussed in January in "Dear Bernie, Meet the "Big Mac ATM" That Will Replace All Of Your $15 Per Hour Fast Food Workers."

Below we show Cowen's full math laying out why the restaurant chain's client-facing fast food workers are now obsolete:

Webmaster's Commentary: 

This is going to be a game-changer for the economics of fast food; but what about the people the kiosks replace?!?

Jun 23 12:17

Senate announces probe of Loretta Lynch behavior in 2016 election

The Senate Judiciary Committee has opened a probe into former Attorney General Loretta Lynch’s efforts to shape the FBI’s investigation into 2016 Democratic presidential nominee Hillary Clinton, the committee’s chairman announced Friday.
In a letter to Ms. Lynch, the committee asks her to detail the depths of her involvement in the FBI’s investigation, including whether she ever assured Clinton confidantes that the probe wouldn’t “push too deeply into the matter.”
Fired FBI Director James B. Comey has said publicly that Ms. Lynch tried to shape the way he talked about the investigation into Mrs. Clinton’s emails, and he also hinted at other behavior “which I cannot talk about yet” that made him worried about Ms. Lynch’s ability to make impartial decisions.
Mr. Comey said that was one reason why he took it upon himself to buck Justice Department tradition and reveal his findings about Mrs. Clinton last year.

Webmaster's Commentary: 

Lynch will most probably have to be subpoenaed, and may well not respond to it even if she is subpoenaed.

IF I were Charles Grassley right now, I would be preventing her from leaving the country to go to a country with which the US does not have an extradition treaty; because, were I a betting woman, I would almost bet on her doing something like that, and right the heck now!!

Jun 23 12:14

Deportation fears drive down food assistance requests

Keeping it for the people who are Legally Entitled to AID

Kansas--- Applications are down 74 percent in the last four months compared with the same time a year ago.

Jun 23 10:04

Here Is The Reality Of Our Predicament: “The US System Is Going To Move Into The Next Phase Of Collapse Under Trump’s Watch”

Just after the US presidential election in 2016 I published an article titled ‘Order Out Of Chaos: Defeat Of The Left Comes With A Cost’, covering a rather difficult subject matter, namely the concept of “4th Generation Warfare” and how it is used by establishment elitists to defeat popular resistance to their agenda of centralization and globalization. 4th Gen tactics are confusing to many because most people think in terms of single movements and direct correlations; they think that a punch thrown is a punch intended to strike, rather than intended as a feint or misdirection.

Jun 23 10:04

Credit-Card Debt Slaves Move to Top of Fed’s Bank Worries

Projected losses at the top 34 banks in a “severely adverse scenario.”

Jun 23 09:53

Canary In The Coal Mine: Unfunded Liabilities Have Turned Illinois Into A “Banana Republic” On The Brink Of Bankruptcy

Illinois is the perfect example of what happens when your state is run by fiscally irresponsible dunces for decades. The state is buried debt, and hasn’t passed a budget in over 700 days. 100% of their monthly revenue is being consumed by court ordered payments, and the Illinois Department of Transportation has revealed that they may not be able to pay contractors (who are working on over 700 infrastructure projects) after July 1st if the state doesn’t pass a budget. To top it all off, the state’s credit rating is one step away from junk status, the lowest of any state. Because of these factors, Illinois may become the first state to declare bankruptcy since the Great Depression.

Jun 22 17:07

America’s Oligarchs Will Control 70% Of National Wealth By 2021

A new study by the Boston Consulting Group has found that while wealth inequality is growing on a global scale, it has kicked into overdrive in the United States – where America’s 1% are expected to control 70 percent of the nation’s private wealth by the year 2021.

Jun 22 16:30

The Bitcoin Economy, in Perspective

Jun 22 15:50

Investors Have Become Brain Dead

Jun 22 15:44

The U.S. Economy is a Perverted, Neo-Feudal, Rent-Seeking Abomination

The banker bailouts of the 2008/09 period changed my life forever. I was working on Wall Street at the time, and the way in which the government rallied around the financial institutions that torched the world and left its victims in the dust threw my entire delusional worldview into disarray. Prior to that, I had bought into the absurd assumption that I was financially successful at a young age primarily because I was hard-working and talented.

Jun 22 15:41

Now Comes The Fiscal Year From Hell

Four things are not going to happen in the Imperial City before October 1. That is, there will be no bill to repeal and replace Obamacare, no sweeping tax cut stimulus, no debt ceiling increase and no appropriations bills for FY 2018, which happens to commence on that date.

Jun 22 15:39

Debt Crisis 2.0: How the Pieces are Falling into Place

As the amount of household debt rises, so does the risk of another financial crisis. A new milestone has been reached in the U.S.

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