ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Sep 03 12:50

The American Dream Is Getting Smaller, And The Reason Why Is Painfully Obvious…

Almost everyone that will read this article will have debt. In America today, we are trained to go into debt for just about everything. -- If you want a college education, you go into debt. -- If you want a vehicle, you go into debt. -- If you want a home, you go into debt. --
If you want that nice new pair of shoes, you don’t have to wait for it. Just go into more debt. -- As a result, most Americans are currently up to their necks in red ink…

Sep 03 12:45

See How Much the Top 1% Earn in Every State

Sep 03 12:23

Central Banks Enrich a Select Few at the Expense of Many

The message unanimously churned out by politicians, central bankers, and ‘mainstream’ economists is that central banks are there for the ‘greater good’. They provide the economy with sufficient money and credit, and they fight inflation, thereby supporting output and employment growth. What is more, central banks, are supposedly in a position to effectively fend off or at least mitigate financial and economic crises. However, unfortunately, nothing could be further from the truth.

Sep 03 09:01

Turkey’s Erdogan calls on global trading partners to smash US dollar’s ‘monopoly’

Turkey will pursue non-dollar transactions in trade and investment with other countries, President Recep Tayyip Erdogan said in response to US sanctions. He compared the US’ behavior towards his country to “wild wolves.”

“We need to gradually end the monopoly of the dollar once and for all by using local and national currency among us,” Erdogan said at a business forum in Kyrgyzstan.

Sep 03 09:00

Bank Tells South African Farmers They Will Have to Pay Debts for Property Seized by the State

South African farmers subjected to land expropriation without compensation will still have to pay off their debts for property which has been seized by the state, according to a major bank.

In an email from Nedbank widely circulated on social media, now confirmed as genuine by Head of Group Media Relations Kedibonea Molopyane, according to The South African, farmers are warned that their debts will have to be paid in full even after their property is confiscated by the government.

Sep 03 08:58

Peso Set To Disintegrate After IMF Tells Argentina To Stop Supporting Currency

On May 11, three days after Argentina secured a $50 Billion IMF bailout - the largest in the fund's history - we jokingly noted that with the peso resuming its slide, an indication the market did not view the IMF backstop as credible, the ECB would need to get involved.

Sep 03 08:57

Out-Of-Warranty Tesla Owners Left With No Choice But To Fix Their Own Cars

Due to a lack of reputable mechanics, widespread service centers and aftermarket parts, some out of warranty Tesla owners are left with no choice but to try and fix their cars themselves. Such was the case of Model S owner Greg Furstenwerth, a self described "Tesla fan". CNBC detailedhis journey through repairing his own out of warranty Tesla when the company "treated him like [he] didn't own a Tesla" after his warranty ran out.

Furstenwerth was one of the first Model S owners, pre-ordering in 2013. He was even one of the first in the state of Hawaii to own a Tesla. Like some fans of the company have done after buying their Teslas, he even undertook a cross-country journey to prove that the world did not need gas powered vehicles and that there was nothing to be anxious about regarding the vehicle's range capabilities.

Sep 03 08:36

Lift-off for China’s controversial corporate colossus

Sitting on top of the pyramid with one eye on the stars, this corporate colossus casts a huge shadow in the land of the giants.

But like the majority of state-owned enterprises in the country, the monolithic China Aerospace Science and Technology Corporation is shrouded in an aura of secrecy.

With 170,000 employees and annual revenue hovering around the US$34 billion-mark, CASC is one of the ‘big beasts’ of the SOE sector.

Ranked in the Fortune Global 500 list, its core business revolves around the nation’s space program and missile development. Yet its tentacles extend beyond that through a labyrinth of affiliates, which are at the heart of President Xi Jinping’s “Made in China 2025” policy.

Sep 03 08:33

The New Silk Roads are just pieces in a giant puzzle

Vast Chinese infrastructure scheme is plagued by Sinophobia, damned as a 'debt trap' and tainted by corruption in Malaysia, Sri Lanka and Pakistan, yet these were faults inside these countries

Sep 03 08:30

Art Laffer’s Chinese curve ball

God bless Arthur B Laffer, the author of the eponymous curve. If statesmen are hedgehogs (with one big idea) or foxes (with many little ideas), Art is the mayor of Hedgehog City. His big idea is that lower taxes give you more economic growth.

Along with my former business partner Jude Wanniski, Wall Street Journal editor Robert Bartley, and a handful of other economists and publicists, Art sold the idea of dramatic tax cuts to Ronald Reagan and thus stood midwife to the greatest US economic boom of the past century.

Sep 03 07:53

French Farmers Sow Grass in Fields to Protest China Buying Up Thousands of Acres of Countryside

French farmers lit flares and sowed grass seeds on land bought up by firms from China, complaining locals are being squeezed out of the countryside by foreign investors.
Around a hundred farmers converged on land near Châtillon-sur-Indre in the Loire valley, where China’s Hongyang consortium has bought more than 2,000 acres of farmland.

It bought 4,200 acres in the region in 2016, and all told, the Chinese have purchased an estimated €76 billion (£68bn/$88bn) in French land since 2010, including a large number of Bordeaux vineyards — up from 30 châteaux in 2012 to over 160 today, according to The Times.

“The land is there to provide for farmers’ families and to produce food,” complained Laurent Pinatel, a spokesman for the Small Farmers’ Confederation.

“The [Chinese] owners have come here to make a profit, to speculate on agriculture while monopolising the land,” Mr Pinatel.

Sep 03 07:34

Michel Barnier says he strongly opposes May's Brexit trade proposals

Michel Barnier has said he is “strongly opposed” to the prime minister’s Chequers proposals on future trade, as he advised European car manufacturers that they will have to use fewer British-made parts after Brexit.

In his most damning condemnation yet of the UK government’s plans, the EU’s chief Brexit negotiator said the British offer on customs was illegal and its suggestion of a “common rulebook” on goods would kill the European project.

Instead, in an intervention that will concern the 186,000 people directly employed by the car industry in the UK, Barnier warned European manufacturers that the streamlined system of imports and exports between the UK and the rest of Europe would come to an end.

Sep 02 23:54

Huge China-backed free trade deal could be signed as early as November

The US trade war and a thaw in ties between China and Japan are raising prospects for the world's biggest regional free-trade deal, analysts said on Sunday (China time) after trade negotiators voiced high hopes of reaching a broad agreement in November.

Singaporean Trade and Industry Minister Chan Chun Sing said trade negotiators from 16 likely signatories - including New Zealand - of the China-backed Regional Comprehensive Economic Partnership, or RCEP, agreed on key elements of the deal at a meeting in Singapore last week, and a broad agreement was likely when leaders of the countries met in the city state in November.

"We are looking for that broad agreement, that milestone to be achieved, or what we call substantial conclusion, when the leaders meet at the end of the year," Chan said on Saturday.

Sep 02 23:18

The Day U.S. Military Supremacy Publicly Ended

Military Budgets

The U.S. Military budget for FY 2019 will be $716 Billion. Add $70 Billion for Homeland Security, $70 Billion for the nation’s 16 intelligence agencies, $186 Billion for veterans’ benefits, and the U.S. spends more than a trillion dollars a year on “defense.” Two trillion dollars covers yearly mandatory expenses for social security, Medicare, Medicaid, and interest on the federal debt, leaving less than one trillion out of the country’s $4 Trillion budget left for everything else.

Russia’s military budget is $61 B a year, less than 10 percent of the U.S. military budget and less than that of Saudi Arabia.

Given the above facts, Russia would appear to be no match against the U.S. militarily.

Sep 02 18:59

The ticking time bomb that could blow into a financial crisis

When hedge fund managers from FrontPoint Partners drove through a Florida suburb in the run-up to the financial crisis, they quickly realised the US housing market was built on sand. Anyone could grab a 2,000 sq ft slice of the American dream in the Sunshine State.

These toxic subprime mortgages were then bundled together in collateralised debt obligations (CDOs), given top ratings from credit agencies, and sold on in a neat, explosive package to buyers unaware that the US housing bubble was about to burst.

The famed hedge fund depicted in Hollywood blockbuster The Big Short would cash in on the market's over-exuberance.

"The buyers of so-called triple A, double A, triple B, double B tranches in these collateralised loan obligations (CLOs) are making an investment off data that is dubious at best," says Robin Doumar, founder of credit manager Park Square Capital.

Sep 02 17:07

US dollar completely ditched in trade between Iran & Iraq – official

The US dollar is no longer used by Tehran and Baghdad in bilateral trade, giving way to the euro and local currencies, as well as direct barter of goods, head of the Iran-Iraq Chamber of Commerce Yahya Ale-Eshagh has revealed.

“[The] US dollar has been removed from the list of currencies used by Iran and Iraq in their trade transactions and they are using Iranian rial, euro and Iraqi dinar for financial transactions,” Ale-Eshagh said on Saturday, as quoted by local media.

Sep 02 16:17

The US Share Market Reality Exposed

Sep 02 16:02

Deja Voodoo, 1994 Edition

Sep 02 15:27

11 Facts About America’s Wildly Out Of Control Student Loan Debt Bubble

Higher education has become one of the biggest money-making scams in America. We tell all of our young people that if they want to have a bright future, they must go to college. This message is relentlessly pounded into their heads for their first 18 years, and so by the time high school graduation rolls around for many of them it would be unthinkable to do anything else. And instead of doing a cost/benefit analysis on various schools, we tell our young people to go to the best college that they can possibly get into and to not worry about what it will cost. We assure them that a great job will be there after they graduate and that great job will allow them to easily pay off any student loans that they have accumulated. Of course most college graduates don’t end up getting great jobs, but many of them do end up being financially crippled for decades by student loan debt.

Sep 02 14:59

Why Is Productivity Dead in the Water?

Sep 02 09:35

EU Will Not 'Sit Like Rabbit in Headlights' in Face of US Sanctions - German FM

Washington’s decision to ramp up tariffs on steel and aluminum imports from the European Union has cost European producers billions in lost revenue and exacerbated US-EU tensions.

German Foreign Minister Heiko Maas has urged the European Union to stand up for its interests in the face of sanctions and excessive tariffs imposed on its partners by Washington.

“We should not sit like a rabbit in the headlights in the face of [US] economic sanctions and tariffs. We must protect our own interests. It is not only the 80 million Germans we are talking about, it is Europe and the 500 million people living there,” Maas said in an interview with the newspaper Bild published on Sunday.

Sep 02 09:35

Crashing currency chaos spreads across the Global South

The Iranian rial: crash. The Turkish lira: crash. The Argentine peso: crash. The Brazilian real: crash. There are multiple, complex, parallel vectors at play in this wilderness of crashing currencies. Turkey’s case is heavily influenced by the bubble of easy credit created by European banks.

Argentina’s problem is mostly to do with the neoliberal austerity of President Mauricio Macri’s government admitting it won’t be able to fulfill payment targets agreed with the IMF less than three months ago.

Sep 01 19:01

7 Charts On Quantitative Tightening

Sep 01 09:19

IMF backs South Africa’s plan to confiscate land from white farmers

The International Monetary Fund (IMF) approves of South Africa’s controversial land reform as long as the highly contentious process is “rules-based” and transparent, according to the fund’s representative in the country.

Montfort Mlachila, the IMF’s senior resident representative in South Africa, said that the regulation must not damage agricultural output and put at risk food supplies for the country’s citizens.

“We are in full support of the need to undertake land reforms in order to address the issues of inequality,” Mlachila said in an interview with Reuters.

Webmaster's Commentary: 

"Stealing is our bread and butter!" -- International Futhermuckers.

Sep 01 09:18

Warren Buffett calls Apple’s $1,000 iPhone ‘enormously underpriced’

The world’s third-richest person, Warren Buffett, said he has increased his stake in technology giant Apple, which became the first publicly traded firm to reach $1 trillion in market value.

Buffett’s Berkshire Hathaway is Apple’s third-biggest investor, holding a stake worth about $56 billion, according to financial data and software firm FactSet. The legendary investor ties his love for the tech giant to the power of Apple’s brand and its ecosystem.

“I do not focus on the sales in the next quarter or the next year, I focus on the... hundreds, hundreds, hundreds millions of people who practically live their lives by it,” Buffet told CNBC, referring the popularity of iPhone – the company’s flagship product.

Sep 01 09:16

Back in the (Great) Game: The Revenge of Eurasian Land Powers

Get ready for a major geopolitical chessboard rumble: from now on, every butterfly fluttering its wings and setting off a tornado directly connects to the battle between Eurasia integration and Western sanctions as foreign policy.

It is the paradigm shift of China’s New Silk Roads versus America’s Our Way or the Highway. We used to be under the illusion that history had ended. How did it come to this?

Sep 01 08:39

A NORTH AMERICAN UNION OF UTILITIES – HEY, YOU KNOW YOU CAN RELY UPON MEXICO FOR YOUR ELECTRICITY – RIGHT?

the noose is tightening around your neck, and you probably didn’t know it – YET!

Sep 01 07:56

Is Filing For Bankruptcy Right For You?

Aug 31 16:18

How Investment Goals Vary by Country and Age

Aug 31 14:14

Canada's Looming Debt Crisis

Aug 31 12:55

“The Stage Is Definitely Set For An Economic Disaster Of Unprecedented Proportions”

The truth is that all of our long-term problems are much worse than they were in 2008, and the stage is definitely set for an economic disaster of unprecedented proportions.

Aug 31 12:35

The Rumors are that Turkey Will Default

Aug 31 10:01

Landlords give Homebase green light to close 42 stores in bid to survive - but 1,500 jobs are likely to go

Homebase landlords have gifted the stricken DIY chain a much-needed lifeline and rescued it from the brink of collapse.

In a make-or-break vote on Friday, 96 per cent of creditors green lit the DIY chain's proposals to close 42 shops through a company voluntary arrangement.

It also means Homebase will secure rent reductions of between 25 and 90 per cent on 70 of its shops, better lease terms and temporarily discounted business rates through the restructuring.

The store closures to be carried out during late 2018 and early 2019 are expected to lead to around 1,500 redundancies.

Aug 31 09:41

TESLA is not the most short stock

Aug 31 09:13

UK seeks exploitation of Africa resources through trade deals: Expert

The United Kingdom’s new move to sign trade deals with African countries was in line with London’s old policy to exploit and "rip off" the continent's resources, a political analyst says.

“The UK has always invested as it is abroad, but then you have to look at the nature of the investment,” Rodney Shakespeare, an author and political expert from London, told Press TV on Wednesday.

“Its purpose is to rip off the resources [of Africa] for the benefit of the local elites and (for) the United Kingdom,” he added.

Shakespeare said British Prime Minister Theresa May’s announcement during her South Africa trip that she wants the UK to become the largest investor in Africa from the developed world was a a repetition of an old propaganda line which seeks to plunder the wealth of nations under the title of foreign investment.

Aug 31 09:02

Tucker: There's nothing free about this market

Aug 31 08:53

How America's 'most reckless' billionaire created the fracking boom

But the shale success story nearly became a disaster. While to date, most of the complaints about fracking have focused on environmental concerns, there’s a bigger and far less well known reason to doubt the most breathless predictions about America’s future as an oil and gas giant. The fracking of oil, in particular, rests on a financial foundation that is far less secure than most people realise.

Because so few fracking companies actually make money, the most vital ingredient in fracking isn’t chemicals, but capital, with companies relying on Wall Street’s willingness to fund them. If it weren’t for historically low interest rates, it’s not clear there would even have been a fracking boom at all.

Aug 31 08:45

US files WTO lawsuit against Russia over import taxes on American goods

Washington has filed a complaint with the World Trade Organization (WTO) against tariffs imposed by Moscow on some US imports, the trade body confirmed on Wednesday.

According to Russia’s economy ministry, Washington has misinterpreted the measures taken by Moscow, explaining that Russia complies with the WTO regulations.

“The United States misinterprets the nature of the measures taken by the Russian side. We are acting within the framework of the WTO Agreement on Safeguards, which allows compensating for damage from special protective measures taken by another country,” the ministry said.

Webmaster's Commentary: 

"We have the right to put tariffs on you but you do not have the right to put tariffs on us!!!!!!" -- Official White Horse Souse

Aug 31 08:42

This LA Musician Built $1,200 Tiny Houses for the Homeless. Then the City Seized Them.

It’s not a perfect solution, but when the option is sleeping in a tent or on the sidewalk, it’s a good temporary fix until something better is developed.

But a good idea is not good enough when bureaucrats are involved.

Homeless “shelters” are dangerous, dirty, and dehumanizing, but they employ a lot of government bottom feeders.

Inexpensive solutions are not popular with government people. How are they going to get their kickbacks on a tiny house that costs only $1,200?

Aug 31 07:46

Rumor: Turkey Selling Gold

Aug 30 19:12

The bull market is running out of brea(d)th

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