ECONOMY | WHAT REALLY HAPPENED


ECONOMY

May 15 09:19

Medical Insurance Companies Can Decide Who Lives and Dies

Whistleblower Wendell Potter says the death of a young woman denied care by the insurance company he worked for was a turning point in his life; he says these practices are still taking place under the Affordable Care Act

May 15 09:19

It's time to restore US-Russia ties, Putin tells Pompeo

Russian President Vladimir Putin told US Secretary of State Mike Pompeo that he had the impression President Donald Trump wanted to restore relations between the US and Russia after the Mueller inquiry exonerated him.

“As you know, just a few days ago, I had the pleasure of talking with the US president on the phone,” Putin told Pompeo on Tuesday, as the two met in Sochi. “I got the impression that the [US] president was inclined to re-establish Russian-American relations and contacts to resolve together the issues that are of mutual interest to us.”

May 15 06:33

Your Pension May Be Monetized

May 14 16:52

"We're Gonna Need More Bagholders..."

May 14 11:56

First assessment blames Iran for Middle East ship explosions, official says

An American military team assessing blasts that damaged four commercial ships off the coast of the United Arab Emirates (UAE) Sunday has blamed Iran or Iranian-backed proxies using explosive charges, a source told Fox News on Monday evening.

Each ship had a 5-to-10-foot hole in it, near or just below the water line, a U.S. official told The Associated Press. A Norwegian-flagged vessel, two Saudi oil tankers and a bunkering tanker flagged in Shariah, one of the UAE's seven emirates, all suffered similar damage Sunday.

The UAE asked the U.S. to help investigate the damage, which Gulf officials have characterized as sabotage. UAE's state media said Sunday there had been "no injuries or fatalities on board the vessels" and "no spillage of harmful chemicals or fuel."

The U.S. has warned ships that "Iran or its proxies" could be targeting maritime traffic in the region, and America has moved additional ships and aircraft into the region.

Webmaster's Commentary: 

So, there is zero surveillance footage in any of these cases, but the US military has already accused Iran of this?!?

Anyone out there remember the firm accusation of President Bush, when he claimed that Iraq had "weapons of mass destruction"?!?

This accusation is on par with that; if the Iranians had really bombed these ships, with the intention of never having them seaworthy again, they would have left NONE of these ships as mildly damaged as they actually are, and would have zotted the heck out of them.

May 14 11:27

Houthi Drones Attack Aramco Pipeline Booster Stations

Yemen's Iran-backed Houthi rebels carried out drone attacks on two Aramco pipeline booster stations, a strike that was intended to disrupt world oil supplies, according to Saudi Energy Minister Khalid al-Falih.

Al-Falih told Saudi-funded news agency Al-Arabiya that the attacks targeted two pipeline booster stations between the Eastern province and the city of Yanbu.

Webmaster's Commentary: 

Notice that the second set of words in this article are "Iran-backed Houthi rebels"

So, by creating the syntax in this manner the first thoughts should be, "Houthi Rebels are bad, Saudi Arabia is good", in their reckless bombings of what is left of Yemeni schools, hospitals, infrastructure. children, infants, and the medically fragile elderly.

But of course, that is the reality about to where this article dare not go; it's like this reality is Kryptonite, because any disruption of oil supplies will make everything more costly. ]

But a decisions has obviously been made, that all Yemeni people killed and maimed by this genocide, are expendable, anyway; that at least is where Crown Prince bin Salman and President Trump are.

In the immortal words of Tony Soprano "Fuggetaboutit!!", when it comes to a lasting ceasefire, and a negotiated settlement.

That the Butcher of Yemen, Crown Prince Mohamed bin Salman, is getting consistent help from his American allies, under the watch of President Trump, means that Americans - all of us - are complicit in this

slaughter, until the US finally does the right thing and leaves.

This never was our fight to begin with.

And, unsurprisingly, oil jolted up after the news of the drone bombing.

https://www.blacklistednews.com/article/72668/oil-prices-jump-on-drone-attack-on-saudi-aramco.htmlOil prices jump after dron attack on Saudi Aramco.

May 14 11:00

Senior Admin Official: "A Trade Deal Isn't Close; US Could Be In For A Long Trade War"

Despite a flurry of meandering hot-then-cold trade war tweets from President Trump, US futures have been powering higher all morning. But then along came Axios to pour cold water all over the growing trade-deal optimism after the stock market's worst one-day selloff since January.

According to Axios, senior administration officials told senior White House reporter Jonathan Swan that a trade deal with China "isn't close" and that the US "could be in for a long trade war."

Swans' sources said the differences between the two sides "are so profound taut, based on his read of the situation, he can't see the fight getting resolved before the end of the year."

That's a much longer timeline than the three-four weeks Trump touted Monday night, who touted the possibility that the a meeting with President Xi at the G-20 in Japan next month could yield an agreement.

Webmaster's Commentary: 

Perhaps a slight bit of flexibility on both sides, might work to get these talks moving again; but until that happens, get really ready for a really tough economic time ahead.

May 14 10:55

Peter Schiff: "The Writing's On The Wall" For The Economy

Uber launched its IPO on Friday. It was less than ideal.

Meanwhile, the Federal Reserve is talking about how it wants to tweak its quantitative easing program when the next recession rolls around.

Peter Schiff talked about how these things relate - and the “writing on the wall” for the economy in his latest podcast.

Instead of buying some fixed amount of Treasurys and mortgage-backed securities, the central bankers have floated the idea of pegging a yield during the next economic downturn. For example, it would try to hold the interest rate on a one-year bond at, say, 1%. As Peter pointed out, this is essentially price-fixing.

They’re saying, ‘We don’t want the interest rate that is being determined in the market. We want to interfere in the market so that the interest rate is lower than the market would set.'”

Webmaster's Commentary: 

Mike and I went to our local grocery store for a couple of items; the end price was more than slightly, bone-chillingly jarring.

The price of food is already getting higher, and just threw both of us for a loop.

One of the things you can do, and hopefully with a couple of friends, is get a freezer, and buy in bulk. Freezers are a good place to start taking down your food budget.

I have found myself learning my way around a crock pot, which allows tougher cuts of meat, to cook, and become tender, rather effortlessly

If you know, or learn, how to "slow cook", it is a great release from relying on the microwave to do everything, and will tend to drive your food budget down as well.

May 14 10:39

Boeing Settlement Hinges On How Long Doomed 737 Max Passengers Knew They Were Going To Die

Boeing and its insurers are likely to pay an amount of money to the families of those who died in the 737 Max crashes that is directly proportional to one grim measure: how long the victims knew they were plunging to their deaths. Additionally, as part of a legal fight to determine Boeing's financial liability after the 737 Max crashes in Ethiopia and Indonesia, passenger's families could be paid compensation based on grief, sorrow, loss of companionship and lost future paychecks.

According to an estimate from Bloomberg, the claims could total as much is $1 billion, and some legal experts believe the final amount could be even more, if evidence shows that Boeing knew about flaws in their planes prior to the tragedies taking place. This idea has already prompted investor lawsuits against the company, claiming it hid safety risks.

Webmaster's Commentary: 

Boeing used to be a company with a stellar reputation for safety; that there was knowledge on the part of the execs, that there were real, possibly fatal flaws in the design these 737s, is more than a little scary.

Whoever knew about this, and sat on it, should be looking at real jail time, and NOT, thank you very much, in a Club Fed.

May 14 10:33

Will Amazon Put UPS Out Of Business?

Authored by Mike Shedlock via MishTalk,

Amazon's new robot packs 600+ boxes per hour vs humans at under 200. With that announcement comes a $10K offer to quit.

Lights Out Warehouse

Please consider New Amazon Machines Pack 600 Orders Per Hour, Could Replace Thousands of Jobs.

The new machines, known as the CartonWrap from Italian firm CMC Srl, pack much faster than humans. They crank out 600 to 700 boxes per hour, or four to five times the rate of a human packer, the sources said. The machines require one person to load customer orders, another to stock cardboard and glue and a technician to fix jams on occasion.

Including other machines known as the “SmartPac,” which the company rolled out recently to mail items in patented envelopes, Amazon’s technology suite will be able to automate a majority of its human packers. Five rows of workers at a facility can turn into two, supplemented by two CMC machines and one SmartPac, the person said.

Webmaster's Commentary: 

Unskilled labor is rapidly becoming a thing of the past; those with jobs very much at risk, because of these developments, will have to learn how to talk to the "brains" of these systems, and some will simply not be able to do it, or keep up with the rapidly evolving technology.

To get a better, and perhaps, chilling view of a potentially very dystopian future, watch the film "AI", short for artificial intelligence.

There is a scene in the film, where the humans are so furious, about having been pre-empted by robots, doing the jobs they used to to, and in essence, taking over their jobs, that they start torturing some very human-looking like robots to their extinction.

May 14 10:14

Farm Crisis: Soybeans Crash To Decade-Low As Trade War Intensifies

Soybean futures fell 25% in 50 weeks since the inception of President Trump's trade war early last summer.

CBOT Soybeans futures plunged to their lowest level in a decade as China on Monday said it would raise tariffs on $60 billion in US goods in retaliation for Trump's decision on Friday to raise duties on $200 billion in Chinese products to 25% from 10%. The deepening trade war has pushed American farmers onto the verge of disaster.

Webmaster's Commentary: 

These people, along with unemployed factory workers, were the essence of his base; he knew, in just what tone, and demeanor, to address their anger and ire about jobs leaving the US, and about farmers who couldn't get a fair deal on their crops.

Now that they believe they have been betrayed by the man they had hoped would save them, what is going to happen now in 2020?!

Unless he is able to get the tariffs stopped and soon, and staunch the economic blood-loss, leading to our farmers' collective financial ruin, he is going to lose this critical part of his base in the next election.

These are people who do not forget betrayal easily.

May 14 10:07

U.S. Readies New Tariffs as Trump Says He’ll Meet China’s Xi

The U.S. prepared to hit China with new tariffs even as President Donald Trump said he’ll meet his Chinese counterpart, Xi Jinping, at next month’s G-20 summit, an encounter that could prove pivotal in a deepening clash over trade.

The U.S. Trade Representative’s office Monday released a list of about $300 billion worth of Chinese goods including children’s clothing, toys, mobile phones and laptops that Trump has threatened to hit with a 25% tariff.

May 14 10:04

Burnout Nation

Authored by Charles Hugh Smith via OfTwoMinds blog,

The economic and financial stresses will exceed the workforce's carrying capacity in the next recession.

A number of recent surveys reflect a widespread sense of financial stress and symptoms of poor health in America's workers, particularly the younger generations. There's no real mystery as to the cause of this economic anxiety:

-- competition for secure, well-paid jobs that were once considered the birthright of the middle class is increasingly fierce;

-- the pay and predictability of the jobs that are available are low;

-- high-paying jobs are extraordinarily demanding, forcing workers to sacrifice everything else to keep the big-bucks position;

-- the much-lauded gig economy is tracking the Pareto Distribution, as 80% of the income accrues to the top 20%, and those trying to earn a lower-middle class income in the gig economy are working long hours to do so;

Webmaster's Commentary: 

I know that Mike and I are working harder than we ever have before, in terms of hours necessary just to keep WRH alive; it has become a plus-time, full-time vocation for both of us, and the emotional and financial strains of this are definitely affecting us negatively.

May 14 10:00

"White Women Jog and Walk Their Dogs on Streets That [black] Drug Dealers Once Ruled": Atlanta Journal-Constitution Laments Whites Have Made Martin Luther King's Birthplace in Atlanta a Thriving Community

One of the great admissions – well, many actually – of racial reality (and the type of communities black people exclusively create in the absence of whites) is contained in this piece from the Atlanta Journal-Constitution. [Atlanta’s gentrification wave washes over historic Old Fourth Ward, Atlanta Journal-Constitution, May 9, 2019]:

May 14 09:58

Similarities to the dot-com bust?

May 14 09:57

Tariffs: The Taxes That Made America Great

A tariff may be described as a sales or consumption tax the consumer pays, but tariffs are also a discretionary and an optional tax.

If you choose not to purchase Chinese goods and instead buy comparable goods made in other nations or the USA, then you do not pay the tariff.

China loses the sale. This is why Beijing, which runs $350 billion to $400 billion in annual trade surpluses at our expense is howling loudest. Should Donald Trump impose that 25% tariff on all $500 billion in Chinese exports to the USA, it would cripple China’s economy. Factories seeking assured access to the U.S. market would flee in panic from the Middle Kingdom.

Webmaster's Commentary: 

What concerns me more than the tariffs, is the uncomfortable understanding about how quickly trade wars can become shooting wars.

and I can guarantee you, we do NOT need a shooting war with China right now.

Our military doesn't have the troop strength; the weaponry; the manufacturing; or the money to insure a positive outcome to a war with China (and/or Russia)

May 14 09:52

Apple Needs A 14% iPhone Price Hike To Offset Higher Tariffs: JPM

One of the companies that has been hit the hardest following the latest escalation in trade war between the US and China, and which not only is reliant on Chinese consumers to purchase its products and services on the mainland, but also produces iPhones in China and is thus subject to a double whammy of anti-American sentiment and higher export tariffs, is Apple, with its shares sliding -11% since the start of last week and 5% on Monday, on fresh worries relating to escalating trade war and the imposition of tariffs on imports from China, as well as on concerns over the consequences of the recent Supreme Court decision allowing a lawsuit against Apple practices in the App store.

In a note published this morning, JPMorgan writes that while it is difficult to precisely attribute the magnitude of the share price decline between tariffs and the lawsuits, "it is fair to say that the majority of the share price decline is driven by tariff
concerns."

Webmaster's Commentary: 

Understanding this, is going to cause people to look for cheaper alternatives, at least for the time being.

May 14 09:49

Ron Paul Warns Losing Income Tax Privacy Is A Real Danger

Authored by Ron Paul via The Unz Review,

Last week the New York Times published some of President Trump’s 1980s and 1990s tax returns information. The information detailed President Trump’s financial difficulties during that time. While you would not know it from reading some media reports, this is old news. In fact, President Trump openly discussed his financial difficulties on his popular reality television show.

What should be of great concern is the possibility that the person who leaked the returns - who the paper says has legal access to President Trump’s tax records - is an IRS employee seeking to undermine the president. This would hardly be the first time an IRS employee has leaked confidential information because he disagreed with the taxpayer’s politics. In 2014 the agency had to pay the National Organization for Marriage 50,000 dollars after an IRS employee gave names of the group’s donors to the group’s opponents.

Webmaster's Commentary: 

Whoever did this should be handed their hat, and immediately sacked; this was just a really vindictive thing to do.

But the reality is, it could happen to ANYONE the government really dislikes, and wants to see driven from their job.

May 14 09:13

How Amazon Destroys Millions of New Items it Can’t Sell

Amazon destroys millions of brand-new items including televisions, books and nappies it cannot sell, an investigation has revealed.

Lorry-loads of goods, many still in their packaging, are dumped in sprawling landfill sites or incinerated. The shocking waste was revealed by undercover investigators who secretly filmed in one of the multi-billion-pound company’s enormous warehouses.

Reporters posing as Amazon workers discovered an area called the ‘destruction zone’ where they covertly filmed staff loading pristine toys, unused kitchen equipment and flat-screen TVs into skips to be transported to dumps.

Later, cameras fitted to a drone tailed a truck crammed with expensive consumer goods from an Amazon warehouse to a waste disposal centre and on to a landfill site.

May 14 09:12

Farmers get impatient with Trump's trade war: 'This can't go on'

The escalated tariffs don't hit agricultural products directly, since most were already facing a 25% tariff imposed by China last year. But the news still sent commodity prices plummeting.

"The President of the United States owes farmers like myself some type of plan of action," John Wesley Boyd Jr., a soybean farmer in Baskerville, Virginia, told CNN's Brianna Keilar on Monday.

"Farmers were his base. They helped elect this president ... and now he's turning his back on America's farmers when we need him the most," he added.

May 14 09:09

Disney takes full operational control of Hulu

The Walt Disney Company has taken full operational control of Hulu, The Walt Disney Company and Comcast Corporation announced on Tuesday.

NBCUniversal, which is owned by Comcast, owns 33% of Hulu right now. The companies said in a press release that as early as January 2024, Comcast can require Disney to buy NBCUniversal's interest in Hulu, and Disney can require NBCUniversal to sell that stake to Disney for its fair market value at that future time. Disney has guaranteed a sale price that represents a minimum total equity value of $27.5 billion.

The deal also includes an agreement for both corporations to fund Hulu's recent purchase of AT&T Inc.'s 9.5% interest in Hulu.

May 13 17:45

Kentucky Taxpayers On The Hook An Estimated $1.5B for Their “Information Highway to Nowhere”

By B.N. Frank

Activist Post reported less than a month ago about how Google has to pay $4M to Louisville, KY to remove fiber, repair damage, and repave roads after its failed project. According to a recent article from ProPublica, Kentucky residents are on the hook for a different high-speed internet fiasco...

May 13 17:28

The Japanisation of Europe is evident.

May 13 14:10

RBC customer out of pocket after fraud: What you need to know if you e-transfer money

A system to transfer money online — used over a million times a day in Canada — is not as safe as it advertises, says a Royal Bank customer who had $1,734 stolen during an e-transfer.

The theft occurred after Anne Hoover of Peterborough, Ont., e-transferred money from her RBC account to her friend Fran Fearnley, only to have a fraudster intercept the transaction and divert the money to his own account at another bank.

"I always use e-transfer," says Hoover. "I thought it was a safe way to send money."

May 13 12:33

The cost of Trump’s tariffs has fallen ‘entirely’ on US businesses and households: Goldman

Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.

The bank said in a note that consumer prices are higher partly because Chinese exporters have not lowered their prices to better compete in the US market.

May 13 12:31

Oil Jumps After Saudis Admit Two Tankers Attacked As Iran Tensions Soar

The bizarre and mysterious explosions that rocked the UAE port of Fujairah on Sunday just got even more strange after Saudi Arabia admitted overnight that two of its oil tankers were attacked while sailing toward the Persian Gulf possibly as part of the incident.

Crude prices quickly jumped as much as 2% on the news. Throughout Sunday as what was being reported in international press as multiple oil tankers exploding at port, local UAE officials had vehemently denied any explosion, much less that any sabotage incident, took place.

May 13 12:30

Kudlow Undercuts Trump, Admits American Consumers Are Paying For China Tariffs 

National Economic Council Director Larry Kudlow admitted on Sunday that American importers and consumers would have to pay the tariffs on Chinese imports, completely contradicting President Trump's claims that China pays the duties.

On Fox News Sunday, two days after the US-China trade deal fell apart, anchor and political commentator Chris Wallace pressed Kudlow: "It's not China that pays the tariffs, it's the American importers, the American companies that pay what, is in fact, a tax increase."

May 13 12:29

Morgan Stanley Clients Saddled With Massive Losses After Disastrous Uber IPO

The technology bankers at Morgan Stanley are probably regretting all of the work they put in to steal the coveted 'lead left' spot in the Uber IPO from Goldman.

Though the bank will still take home a sizable chunk of the underwriting fees, minus whatever they've been obligated to spend to try and 'stabilize' the stock, according to Bloomberg, Morgan's hopes to strengthen ties between its wealth management business and its investment-banking side have been dealt a serious setback.

May 13 12:28

Gold Surges Back Above $1300 On Huge Volume As Trade Tensions Escalate

With China's retaliatory threats coming just minutes after Trump warned them not to, and including a closet threat to dump USTs, precious metals are aggressively bid this morning with Gold surging above its 50DMA and breaking $1300 once again.

Gold spiked on extremely heavy volume...

May 13 12:25

Markets Tumble As China Unveils Retaliatory Tariffs, May Dump "Some Treasuries"

After vowing over the weekend to "never surrender to external pressure", Beijing has defied President Trump's demands that it not resort to retaliatory tariffs and announced plans to slap new levies on $60 billion in US goods.

May 13 11:20

Americans driving to Canada for cheaper insulin as prices skyrocket

As insulin prices soar to new heights, some Americans have decided to cross the Canadian border to obtain cheaper medication.

People from Minnesota who are part of the #Insulin4All initiative organised a "Caravan to Canada", driving five hours to purchase insulin for $30 (£23) a vial rather than the $300 they would pay in the US.

May 13 10:57

S&P and Dow Both Triple Topping? Possible

May 13 10:55

Illinois might start charging $1,000 per year to own an electric vehicle: 'It's outrageous'

A proposed hike in Illinois’ annual registration fee for electric vehicles, from $17.50 to $1,000, is being called unfair by current EV owners, and a sales disincentive by manufacturers — just as the new technology is beginning to gain broader traction.

“It’s outrageous,” said Nicoletta Skarlatos, 56, of Chicago, who bought a Tesla Model S five years ago. “I thought Illinois was progressive and would want to encourage EV ownership.”

May 13 10:49

Tariffs: Donald Trump's trust in trade war tactic is big electoral gamble

Donald Trump’s obsession with tariffs may be based on one of his few core beliefs. Or it may be part of a grand strategy to win votes. Either way, triggering a trade war between the world’s two biggest economies represents a huge gamble ahead of next year’s US presidential election.

Webmaster's Commentary: 

Looking at the stock market right now, I think Trump lost the gamble.

May 13 10:28

Most people don’t know the difference

May 13 10:27

Why The Never Ending Market Rally Just Ended

May 13 10:16

War! Good or Bad for Stocks?

May 13 10:13

The Untold Story of the Paul Weiss Internal Investigation that Didn’t Catch a Massive Stock Fraud

The legal press has been having a field day with how the U.S. Department of Justice, funded by U.S. taxpayers to conduct its own serious and unbiased investigations, has been outsourcing its investigations to the criminal target and its outside counsel – specifically, the law firm Paul, Weiss, Rifkind, Wharton & Garrison.

The case making the headlines involves Deutsche Bank. But another Paul Weiss internal investigation that has escaped meaningful scrutiny by mainstream media involves China Medical Technologies. The U.S. Department of Justice now describes this company as a massive securities fraud that dates back to the time that Paul Weiss conducted one of its internal investigations and came up empty-handed – or, at least, that’s what China Medical Technologies told the Securities and Exchange Commission in an official filing document.

May 13 10:09

Dow Plunges, Nasdaq Falls More Than 3% After China Hikes Tariffs

Stocks were falling sharply Monday after China said it would increase tariffs on as much as $60 billion worth of U.S. imports to as high as 25% following last week's collapse of trade talks between the world's two largest economies.

China said the tariff increase on around 5,000 product groups will take effect on June 1. The U.S. last week raised tariffs on $200 billion of China-made imports to 25%.

"The recent escalation in U.S.-China trade tensions is taking a worsening toll on stocks as rising retaliatory tariffs risk sparking a full-blown trade war," Alec Young, managing director of global markets research, FTSE Russell. "Investors are increasingly worried an anticipated second-half profit rebound may now evaporate as President Trump's threat to tariff the remaining $325 billion in Chinese imports would disproportionately target consumer products like iPhones, thereby posing a greater threat to the consumption-driven U.S. economy."

May 13 09:34

Seven Banks Rigging The Multi-Trillion Dollar Foreign Exchange Market

Barclays, Citigroup, HSBC, JPMorgan and three other banks are set to be fined by EU antitrust regulators in coming weeks for rigging the multi-trillion dollar foreign exchange market, two people familiar with the matter said.

The other three lenders are Royal Bank of Scotland, UBS and a small Japanese bank, the people said. The banks will see a 10 percent cut in their fines for admitting wrongdoing.

May 13 06:46

5 Ways to Address Millennial Pessimism about Capitalism

By Doug McCullough and Brooke Medina

Polls suggesting that millennials have a favorable view of socialism are well publicized. Less known are polls showing that 90 percent of millennials have a positive view of entrepreneurship, and 58 percent of millennial respondents believe they are more entrepreneurial than previous generations. So far, though, millennials have not been as entrepreneurial in practice as prior generations. But there is hope that this could change given their views on entrepreneurship and the currently robust economy.

Capitalism is facing high-profile criticism and challenges from politicians. But capitalism doesn’t need to be saved. Rather, we need to teach this generation the skills to prosper in a free enterprise system...

May 12 18:22

44 States Sue Pharma Giants Over “Multi-Year Conspiracy” to Hike Drug Prices by 1,000%

By Jake Johnson

A far-reaching lawsuit filed Friday by the attorneys general of more than 40 states accused some of the nation’s largest generic drug manufacturers of conspiring to inflate prices, in some cases by over 1,000 percent...

May 12 18:02

Top 10 World’s Biggest Unicorn Companies

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