ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Oct 14 09:53

Calculating the Grim Economic Costs of Ebola Outbreak

While thousands of health care workers seek to control the deadly virus in West Africa, and the Centers for Disease Control and Prevention and other medical professionals seek to prevent its outbreak in the United States, financial analysts and others have been trying to estimate — or “model,” in Wall Street parlance — the potential effect on the global economy.

The math is not pretty.

Webmaster's Commentary: 

"People, schmeople; we're talking about losing lots of MONEY if we don't get this under control!" -- Money Junkies

Oct 14 08:53

Saudis Dump Oil To Increase Leverage Over U.S. Middle East Policies

During the last years U.S. president Obama talked a lot about energy independence:

In his fifth State of the Union address on Tuesday, President Barack Obama celebrated the efforts his administration has made to cut greenhouse gas emissions, while also praising recent increases in domestic oil and gas production.

Obama said early in his address that there is now more "oil produced at home than we buy from the rest of the world," for the first time in two decades.

Obama did not say that the increase in U.S. fossil fuel production was only possible because international oil and gas prices had increased above the magic $100 per barrel equivalent. Below that price shale gas and oil extraction as well as oil production from tar sands are only marginally profitable or not profitable at all.

Oct 14 08:12

German government slashes 2014, 2015 growth views

Germany slashed its growth forecasts for this year and next, citing a weak global economy amid a series of international crises, in a step that follows a slew of poor data for Europe's biggest economy.

Oct 14 08:10

Swiss Gold Referendum “Propaganda War” Begins

The referendum for the Swiss Gold Initiative is scheduled for November 30th and the propaganda war - between the Swiss National Bank (SNB) and the Swiss Parliament on one side and the Swiss People's Party (SVP) on the other - has begun and we expect it to escalate as the day draws nearer.

Webmaster's Commentary: 

Three guesses who opposes the measure! And the first two don't count. :)

Oct 14 08:06

Foreclosures Surging in New York-New Jersey Market

The epicenter of the U.S. foreclosure crisis is shifting to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.

Oct 14 08:05

Government To Investigate Chinese Firm's $2 Billion Purchase Of Waldorf-Astoria Hotel

U.S. officials said Monday they are reviewing the Oct. 6 purchase of the Waldorf by the Beijing-based Anbang Insurance Group, which bought the hotel from Hilton Worldwide for $1.95 billion. Terms of the sale allow Hilton to run the hotel for the next 100 years and call for "a major renovation" that officials say has raised eyebrows in Washington, where fears of Chinese eavesdropping and cyber espionage run high.

Oct 14 08:03

Russia’s two largest banks plan SWIFT alternative

The two biggest banks in Russia, Sberbank and VTB, are in talks to create an alternative to the SWIFT global system for interbank financial communications, VTB head Andrey Kostin said.

According to Kostin, Russia has two options: either use the system run by the Russian Central Bank or create a new homegrown transaction platform.

“There is an alternative, we can use the Central Bank system that is already in operation, and we may make our own, we are already in discussions with Sberbank,” Kostin told reporters in Washington DC, where he is for the annual fall meetings of the International Monetary Fund (IMF) and World Bank.

However, the catch with the Central Bank’s international transaction system is the price.

“It’s expensive, in fact several times more expensive than the SWIFT payment system,” the VTB head said.

Oct 14 08:02

Greece plans early exit from largest IMF rescue package in history

Athens has informed the International Monetary Fund (IMF) that it will end its obligations to the unpopular rescue program, which placed crippling austerity measures on the country, more than a year early.

Oct 13 12:36

“De-Dollarization”: Iran, Russia Planning to Establish Joint Bank

Iran and Russia plan to establish a joint bank as an effort to multiply bilateral trade and bypass sanctions on the Islamic Republic’s banking sector.

Head of the Iran-Russia Joint Chamber of Commerce Asadollah Asgaroladi said that Tehran and Moscow are studying the possibilities of opening a new chapter in trade relations that could break the domination of Western currencies over bilateral exchanges.

“Since Russian banks fear the implications of working with Iran due to sanctions, we want to establish the joint Iran-Russia bank with the help of our central banks and private sectors,” Asgaroladi said.

“Such a bank would be able to exchange money between the two sides using rials and rubles and put aside dollars, euros and pounds,” he added.

Webmaster's Commentary: 

Very smart economic thinking, on the part of both Iran and Russia.

Oct 13 11:09

Russia dumping dollars to use to protect currency and falling oil prices

Despite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia's current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012.

Webmaster's Commentary: 

(Sigh) it has become keenly apparent that the most sought-after capability for anyone working for this administration is their pathological inability to think any scenario through to its logical conclusion.

These anti-Russian sanctions appear to have blown up in the face of this administration like a really bad trick cigar.

It has forced China and Russia closer together economically, and caused the US dollar to be bypassed nearly completely in their trading.

And, in the midst of all this, let us not forget that instead of having a budget surplus, the US government has an extraordinary budget deficit, which does not appear to be getting addressed at any time in the near future.

Oct 13 11:01

Saudi Arabia's "Oil-Weapon" Hits Europe

We first exposed the "secret" US-Saudi deal in September which led to the inevitable bombing of Syria. We then progressed to explain the quid pro quo of the deal in lower oil prices (benefiting US consumers into an election and crushing Russian revenues). In today's Wall Street Journal we get the final piece of the puzzle as it is clear that what Saudi Arabia loses in 'price' it will make up in 'volume' as The Kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude. Simply put, "they are threatening [European] buyers" to discontinue sales if they don't agree with the full fixed deliveries. The 'oil weapon' grows stronger...

Days after slashing prices in Asia, Saudi Arabia is now making an aggressive push in the European oil market, traders say.

The kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude.

Webmaster's Commentary: 

So, the quid pro quo for slashing its prices was that the US was going to accomplish regime change in Damascus, ousting Al-Assad once and for all.

This bothers me tremendously, both morally and legally.

We are bombing a sovereign nation which has done absolutely nothing against the United States; we are destroying its oil infrastructure; its food infrastructure; and its civilian infrastructure (by bombing residential areas).

And why?!?

Ultimately, to force regime change in Teheran, something Tel Aviv and certain elements in DC want to see happen.

The P5+1 meetings regarding Iran's nuclear energy program are just for show, and I would almost bet real money that by the end of next month, there will be neither a viable agreement will be reached, nor a desperately-needed extension of these talks.

And again, members of our American military will fight, be killed outright, or maimed for live; all in the service of private, corporate, profit.

Oct 13 10:45

China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin

One place where Russia has been hit the hardest as a result of tumbling oil prices, is the crashing currency, with the Ruble hitting new record lows against the USD on a daily basis. In fact, as Bloomberg reports, Russia has been forced to spend a whopping $6 billion in just the past 10 days to slow down the tumble of the RUB.

Russia’s central bank intervened in the past 10 days to stabilize the ruble, central bank Governor Elvira Nabiullina told lawmakers in Moscow today. The action, which comes as President Vladimir Putin orders a withdrawal of Russian forces from Ukraine’s border, has so far failed to halt the ruble’s decline amid a domestic foreign currency shortage stemming from sanctions. The cost of swapping rubles into dollars widened to a record.

Oct 13 09:32

Oil Price War Throws the Fed into Crisis Mode

It was only a matter of time until the evidence became irrefutable that the only way out of a global deflation on the order of the Great Depression was to address the fact that 571 U.S. billionaires simply don’t have enough hours in the day to spend adequate money to buy enough goods that would require the restocking of shelves, create new factory orders and thereby ramp up job hiring to keep a nation of 317 million people afloat.

A nation where the top 10 percent reaps more than 50 percent of the income is doomed to end up in the quicksand of deflation, dragging down the rich along with everyone else. The Federal Reserve’s timidity to address this reality since the crisis of 2008, as the national debt ballooned and its own balance sheet quadrupled, has now put it in a dire pickle at a most inopportune time.

Oct 13 08:55

ObamaCare Clusterfuck: Covered California gives no-bid contracts to cronies

Corrente readers could see this coming in May 2013: "California exchange spending and contractors exempted from open records law". I'm sure there are plenty of rationalizations for exemptions like that, but it's hard to think of any good reasons. And so we come to today's story from AP:

AP Exclusive: California gives no-bid health pacts

LOS ANGELES (AP) -- California's health insurance exchange has awarded $184 million in contracts without the competitive bidding and oversight that is standard practice across state government, including deals that sent millions of dollars to a firm whose employees have long-standing ties to the agency's executive director. ...

Oct 13 08:34

When the euphoria in flipping slows down: Culver City small home with large price tag. Sales volume continues to slow.

People have a hard time understanding that low interest rates in today’s market are largely a reflection of a negative outlook on the economy. Central banks around the world are more concerned about financial assets and the secondary impact on real estate is just that, secondary. The market took a beating last week and you get people saying “hey, at least rates will be low for that $700,000 crap shack!” This is the kind of isolated California logic that puts people into a bubble regarding macro trends. It is also the same kind of reasoning that caught so many people off guard during the last crisis.

Oct 13 08:31

Counterfeiting Trillions of Dollars in US Treasury Bonds And Other Crimes.

So the Bankers are allowed to take more than $405 billion a year from you because they can counterfeit Treasury bonds. The Federal Reserve has 21 primary dealers who handle Treasury transactions through the New York branch of the FED.

Is there any evidence that there are large amounts of fake Treasury bonds floating around? Yes. There is. There is a rather intriguing story from June 2009 about two Japanese men headed to Switzerland who were detained in Italy with 134 billion dollars in US Treasury bonds. The bonds turned out not to be genuine according to the US Treasury. It is illegal to possess counterfeit securities, but the men were sent back to Japan without being charged. Bloomberg did a story a few days later saying this was merely bizarre news.

Oct 13 08:12

China will use gold and gold pricing to force global currency reset

On Sept. 30, statistician and economist Dr. Jim Willie was a guest on the Caravan to Midnight radio show to talk about current financial, economic, and geo-political events. During his three hour interview, Dr. Willie stated that one of the purposes behind China's creation of the new Shanghai gold exchange is to eventually take over global price controls for the monetary metal away from the Comex, and then force a global currency reset by raising the price of gold to its true or actual value.

Webmaster's Commentary: 

If the price of gold cannot be kept low, people will abandon the stock market and their savings accounts for the metal. Worse, the holders of gold commodities contracts will be unwilling to settle the contracts for the cash value if gold is heading up, and the sellers of those contracts, who printed and sold far more contracts than they have gold to cover, will default.

Oct 13 08:05

Ebola-related shares rally in premarket as Texas nurse tests positive

Shares of companies that are part of the growing effort to find an effective treatment for the deadly Ebola virus were sharply higher in premarket trade Monday, after a nurse who cared for the Ebola patient who died in Dallas last week tested positive for the disease.

Oct 13 07:52

Gold purchases limited to 5 grams in Ukraine

Googe Translate: National Bank of Ukraine (NBU) has amended its ruling stabilizing ?540, extending the restrictions imposed on the sale of foreign currency in cash for precious metals. Corresponding changes are fixed by the NBU on October 3 ?626.

Now, citizens will be able to fly in one banking institution during the workday precious metals for an amount equivalent of 3 thousand. UAH. In addition, the NBU has limited the issuance of bank metals with current and deposit accounts of clients at 15 thousand. UAH (equivalent at the official exchange rate) per day: so far this limitation applied only to cash foreign currency.

Oct 12 09:05

As Monday Looms, Experts Warn Japan's Half-Trillion Dollar Fat-Finger-Trade "Could Absolutely Happen" In The US

Just over a week ago, the Japanese stock market participants were stunned when stock orders amounting to a whopping $617 billion (yes Billion with a B) - more than the size of Sweden’s economy - were canceled for reasons still unknown in what was one of the biggest 'fat finger' trading errors of all time. Since then, US equity markets have suddenly become notably more volatile - and fallen significantly, VIX has seen odd intraday 'spikes', S&P futures saw the very odd 'satan signal', and USDJPY has suffered its worst losses in 3 years. This raises the question of whether US market microstructure is any better than Michael Lewis' Flash Boys' book describes.. (as we head into a bond market holiday, dismal liquidity, and a potential Black Monday), “That could absolutely happen here,” Tabb Group's Larry Tabb warns Bloomberg.

Oct 12 08:40

Bob Herbert Tells Bill Moyers How Corporations and the Big Banks Have Hijacked the Country

Three years ago, reporter and former New York Times columnist Bob Herbert took to the road and traveled across the United States to gather research for his new book, Losing Our Way. In it, Herbert tells the stories of the brave, hard-working men and women he met who have been battered by the economic downturn. He found an America in which jobs have disappeared, infrastructure is falling apart and the “virtuous cycle” of well-paid workers spending their wages to power the economy has been broken by greed and the gap between the very rich and everyone else.

Oct 12 08:40

Mass protests slam US-EU trade deal as 'corporate power grab'

Tens of thousands of people are flooding the streets of cities all over Europe on Saturday in mass rallies against a controversial trade agreement between the US and the EU.

Talks on the pact, called the Transatlantic Trade and Investment Partnership (TTIP), started last February and, having been mostly held behind closed doors, have raised widespread concerns in the European Union and beyond.

Social networks have been mobilized for a mass campaign that has been calling on Europeans and Americans to take action against “the biggest corporate power grab in a decade.”

Oct 12 08:39

Senator: Valerie Jarrett Was Involved in IRS Scandal

Republican Kansas Sen. Pat Roberts said Friday that he thinks the IRS targeting scandal was driven by Valerie Jarrett’s office in the White House, according to information that he saw that Democrats tried to “whitewash.”

Roberts told talk radio host Hugh Hewitt that he participated in a Senate Finance Committee investigation into the IRS scandal but “the effort was made by the majority, by the Democrats in the Congress, to simply end that investigation,” which he called a “whitewash.”

“I’m convinced that even Valerie Jarrett was involved,” Roberts said.

Oct 12 08:32

History Repeats Itself? The American Empire Mirrors The Fall Of The Roman Empire

The Roman Empire lasted 500 years but the American Empire may not surpass 300 years

Oct 11 09:53

Details of How Mandatory Ebola Vaccines Will Soon Be a Reality

What I learned from the meeting is that 0ver the next several days, the public is going to see several journalists revealing both classified and non classified material l related to the Ebola outbreak, and the subsequent deliberate spreading of Ebola through governmental inaction. The American people are also going to hear about operational details about how the government plans to deal with the Ebola outbreak.

Webmaster's Commentary: 

The big pharmaceutical corporations are already drooling over the coming tsunami of cash, and indemnified by the Homeland Security Act and the "Fast track" legislation, are about to foist a whole array of unproven and possibly dangerous concoctions on a gullible public. We have seen these manufacturers make some pretty bad mistakes in the past. The recent "epidemics" of measles and mumps overwhelmingly hit children who had received the MMR vaccine. Those who had not had the vaccine suffered much lower infection rates. The current Enterovirus outbreak is primarily hitting the children who had the "Triple whammy" of the MMR, Seasonal Flu, and polio vaccines. The symptoms of this illness are very close to those of polio, including permanent paralysis and some deaths, and may be a repeat of the disaster in India in 2011 in which a polio vaccine triggered polio symptoms such as permanent paralysis in 47,500 patients. India is now suing the promoters of the polio vaccine campaign.

In 1976 there was an outbreak of Swine Flu in the United States and the US Government ordered mandatory vaccinations, which had to stopped when it turned out the vaccine was killing 50 times as many people as the flu itself. During a more recent Swine Flu scare, the vaccines triggered an epidemic of Guillain-Barre syndrome. The 2009 "When Pigs Fly" flu was declared a pandemic by the World Health Organization, only after it artificially lowered the threshold of number of cases needed to make that headline-grabbing claim. People were stampeded into purchasing Tamiflu. Later studies showed that Tamiflu was no better at dealing with the flu than ordinary acetaminophen!

Today the big money is in the HPV vaccines, supposedly administered to prevent Cervical cancer, and given to girls (and oddly enough boys) too young to engage in sexual activity, and requiring an additional shot when they reach maturity. One of the most popular HPV vaccine, Gardasil, has harmed a great many patients, with symptoms that include sterility! Many nations, such as Japan, are dropping support for mandated HPV shots.

Fraud is rampant in the vaccine industry. In one case a researcher "testing" a new HIV vaccine spiked the test samples with HIV antibodies to make it look like the vaccine was working.

For a long time, parents of children who developed autism following the 36 vaccinations now recommended for children claimed there was a link between the vaccine and autism, most likely tied in with the mercury based preservative Thimerosal. But in 2004 the CDC released a report claiming that no link was found between MMR vaccines and autism. More recently, one of the doctors who worked on that report for the CDC, William W. Thompson, has blown the whistle that the CDC rigged the 2004 study to protect the vaccine industry profits. Despite this revelation, the orthodox medical establishment still cites the 2004 CDC report to assure parents that vaccines do not cause autism. The US has an autism rate of 1 child out of every 68, higher than any other nation on Earth. It is worth noting that among the American Amish, who refuse vaccines for religious reasons, the rate of autism is1 in 10,000.

Back in 1918, at the end of WW1, a pandemic swept the globe ultimately killing more people than had died in the war itself. The public was told it was a "Spanish" flu to obscure its real origins in a series of vaccine trials at Camp Funston (now Fort Riley) in the US, from which it spread to the rest of the globe with the deployment of infected US troops.

So now the same corporations that did all the above (and even worse) along with the same government that lied to you about the Spanish Flu, Saddam's nukes, and the 2004 CDC autism study want to make a fast buck selling you a miracle cure for one of the most deadly diseases known to humans, and expect us to trust them when they start pumping who knows what into our arms.

I don't think so!

Oct 11 08:58

Fracking Setback in Poland Dims Hope for Less Russian Gas

Poland’s ambition to achieve energy independence from Russia is being undermined by drillers giving up on the nation’s shale wells after disappointing results.

The highest test flows during the country’s five-year search for unconventional gas were just 30 percent of what’s needed for commercial production, said Pawel Poprawa, a geologist at the AGH University of Science and Technology in Krakow. The number of active shale permits has fallen 43 percent from a high in January 2013 and explorers probably won’t extend all those expiring this year, according to Slawomir Brodzinski, the nation’s deputy environment minister.

Oct 11 08:51

"De-Dollarizing" Russia Pays Down Near-Record $53 Billion In Debt In Third Quarter

espite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia's current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012.

Oct 11 08:21

Why Oil Is Plunging: The Other Part Of The "Secret Deal" Between The US And Saudi Arabia

Two weeks ago, we revealed one part of the "Secret Deal" between the US and Saudi Arabia: namely what the US 'brought to the table' as part of its grand alliance strategy in the middle east, which proudly revealed Saudi Arabia to be "aligned" with the US against ISIS, when in reality John Kerry was merely doing Saudi Arabia's will when the WSJ reported that "the process gave the Saudis leverage to extract a fresh U.S. commitment to beef up training for rebels fighting Mr. Assad, whose demise the Saudis still see as a top priority."

Oct 11 08:20

Russia dumping dollars to use to protect currency and falling oil prices

As the United States expands its proxy war against Russia and the BRICS nations through a newly discovered secret deal with Saudi Arabia to force down global oil prices, Russia is firing back to this monetary attack against their currency and economy.

Oct 11 08:02

Critics to Obama: 'Draconian Cuts' Have Been to US Public Services, Not War Budget

President Obama's comments on Wednesday that U.S. military spending is under threat of "draconian" cuts were met with immediate rebuke from analysts, who say the poor are bearing the brunt of austerity while the war budget remains largely untouched.

Webmaster's Commentary: 

And that is a major reason this nation is not really prepared to handle an Ebola outbreak here!

Oct 10 08:04

FLASHBACK - Vice President Biden Acknowledges 'Immense' Jewish Role in American Mass Media and Cultural Life

In a remarkable but under-reported address, Vice President Joe Biden recently acknowledged that the “immense” and “outsized” Jewish role in the US mass media and cultural life has been the single most important factor in shaping American attitudes over the past century, and in driving major cultural- political changes.

Oct 10 08:03

Sen. Wyden: NSA Tech Spying Hurts Economy

Google Chairman Eric Schmidt and other Silicon Valley executives say controversial government spying programs are undercutting the Internet economy and want Congress to step up stalled reform.

"We're going to end up breaking the Internet," warned Google Inc.'s Schmidt during a public forum Wednesday convened by U.S. Sen. Ron Wyden, D-Ore., who has been an outspoken critic of electronic data-gathering by the National Security Agency. Schmidt and executives from Facebook Inc, Microsoft Corp. and other firms say revelations of extensive NSA surveillance are prompting governments in Europe and elsewhere to consider laws requiring that their citizens' online data be stored within their national borders.

Oct 10 07:46

Obama to Hide Obamacare Rates Till After Election Day

HealthCare.gov, the online portal where millions of Americans must by health insurance, will not display premiums for 2015 until after the 2014 elections, the Associated Press reported Wednesday.

Oct 10 07:37

The US ranks #36 in the world for respecting property rights. Is this freedom?

Yet despite so much ‘danger’, this was one of the greatest periods of wealth creation in history, simply because people were free to make things happen.

People were free to enter, compete, and make choices in the market. Their freedom and property rights were protected by a clear rule of law.

However, just 50-years later, this positive trajectory was cut short with the establishment of the Federal Reserve.

Oct 10 07:32

Pepsi and Coke take hammering in Mexico as junk food tax starts to bite

Mexico has become one of the few places Pepsi and Coke have seen declining sales after the country adopted anti-obesity laws last year. Concerned over the losses the US beverage industry seems determined to stop similar legislation at home.

PepsiCo saw a 3 percent drop in snack sales volume in Mexico, while reporting a higher quarterly profit in global sales on Thursday.

Its main rival Coca-Cola has also reported beverage volume declines in the Latin American country for the first half of the year, AP reports.

Oct 10 07:30

Exclusive: Feds take jobs from disabled Americans, send them to Central Asia

Sibyl Mikell has worked in the same New Orleans warehouse by the Mississippi River docks since 1980, one of dozens of blind workers who make the mess trays sent to U.S. military forces overseas — including her own son, who finished his second tour of duty in Afghanistan earlier this year.

This operation is an integral part of AbilityOne, a program that awards government contracts to nonprofits that employ blind and disabled people to produce basic products for the military. But Ms. Mikell and 42 coworkers were recently and abruptly laid off from their jobs at Lighthouse for the Blind in New Orleans because of a little-known change in federal procurement rules that encourages military forces in Afghanistan to buy from manufacturers and brokers in Central Asia.

Oct 09 10:52

Energy Wars: Russian Shale Boom Unlikely As Sanctions Force Another Company Out

The payoff for both Russian and western companies might have been enormous. The U.S. Department of Energy estimates that Russian shale deposits are the largest in the world, at 75 billion barrels.?

First, it was the U.S. company ExxonMobil. Then, France’s Total. Now western sanctions against Russia have led Royal Dutch Shell to discontinue its work with Gazprom Neft extracting shale oil from a field in Siberia.

In announcing Shell’s suspension on its website, Gazprom Neft, part of the Kremlin-run gas monopoly Gazprom, said it will continue work “by itself” on the first horizontal exploratory drilling at the Bazhenov shale in Siberia, which began last week.

Webmaster's Commentary: 

These sanctions will ultimately have a boomerang effect, particularly against Europe, which is poised to have a bitterly cold winter.

Oct 09 10:49

Here's What Happened When One City Gave Homeless People Shelter Instead of Throwing Them in Jail

Salt Lake City crunched the numbers. And the prescription was clear. The city was spending $20,000 per homeless resident per year – funding for policing, arrests, jail time, shelter, and emergency services. Homelessness was not going down. Instead, for $7,800 a year through a new program called Housing First, the city could provide a person with an apartment and case management services.

In 2005, the city was spending $40 million to address chronic homelessness. Several years after starting the Housing First program, in 2013, spending was down to $9.6 million.

And more importantly, chronic homelessness has dropped 72 percent.

Oct 09 10:30

Ebola drug maker Chimerix's stock tumbles after Dallas patient dies

Shares of Chimerix Inc., the maker of an experimental drug to combat Ebola, sank Wednesday after the death in Dallas of a patient with the disease who received the medicine.

About two hours after officials announced the death of Thomas Eric Duncan, the Durham, N.C., company’s stock was trading at $30.54, down $2.69, or 8.1%. The shares had hit an all-time high earlier in the day before the announcement.

Oct 09 10:28

Russia’s Gazprom buys Europe’s biggest gas storage facility

Russia will acquire Europe's largest underground gas storage facility this autumn from Germany’s BASF, continuing the development of its Nord Stream operations. In return, the Germans will get access to large gas reserves in Western Siberia.

Oct 09 10:27

‘Disgusting’: Anti-homeless cages installed at UK university

One of the UK’s most prestigious universities has installed cages over warm air vents, as a way to ward off the city’s homeless sleeping on them.

The cages, which have been placed around the universities campus, completely cover the area surrounding the warm air vents near the college buildings.

Students say they are “disgusted”by the cages, saying that the move shows a lack of love and compassion for the less fortunate.

Oct 09 10:12

L.A. Fashion District Is Awash in Drug Money

The next time you're shopping in Santee Alley for a pleather handbag or a $20 pair of distressed jeans, look around you. The vendor selling you that fine Cucci wallet might be laundering money for one of the globe's largest drug cartels.

Some of downtown L.A.'s clothing retailers and wholesalers are so awash in dirty cash that the federal government this week announced that it will be requiring "additional reporting and record-keeping obligations" for nearly the entire L.A. Fashion District.

Webmaster's Commentary: 

Drug lords will usually set up some kind of legitimate business where there is a lot of cash traffic, such as convenience stores, multi-screen cinemas, office supply stores, and those weird stores that sell ceramic statues and kitty-themed items that make you wonder just how they stay in business month after month while stores selling essentials are dropping like flies.

The fact is that these legit business will blend the drug money in with their actual sales receipts to launder it. The good news is that the public really are not buying those weird and pointless toys or albums of really awful music.

Oct 09 07:37

EU approves Hinkley Point nuclear power station as costs raise by £8bn

The European commission on Wednesday gave Britain the green light for a huge government subsidy that will open the way for the first atomic power stations to be built for nearly 20 years.

Oct 09 07:30

Serious Financial Trouble Is Erupting In Germany And Japan

There are some who believe that the next great financial crash will not begin in the United States. Instead, they are convinced that a financial crisis that begins in Europe or in Japan (or both) will end up spreading across the globe and take down the U.S. too. Time will tell if they are ultimately correct, but even now there are signs that financial trouble is already starting to erupt in both Germany and Japan. German stocks have declined 10 percent since July, and that puts them in "correction" territory. In Japan, the economy is a total mess right now. According to figures that were just released, Japanese GDP contracted at a 7.1 percent annualized rate during the second quarter and private consumption contracted at a 19 percent annualized rate. Could a financial collapse in either of those nations be the catalyst that sets off financial dominoes all over the planet?

Oct 09 06:55

Fear of Ebola could have “catastrophic” economic costs, World Bank predicts

A report issued Wednesday by the World Bank forecasts that the total economic impact of Ebola could exceed $32 billion by the end of 2015 if the virus spreads from Liberia, Guinea and Sierra Leone to neighboring countries.

That single dollar amount doesn't fully convey the extraordinary human toll of a virus that kills four in five of its victims and could infect as many 1.4 million people by January. Yet the World Bank's estimate is a reminder that sickness and death are only part of what could be a developing regional crisis.

Oct 08 12:56

Shift to elected officials a smart move in Detroit

The mayor and council will now be running city government for the first time in 18 months

Oct 08 12:53

World Bank issues dire warning about Ebola's economic impact

The economic impact of the Ebola epidemic could reach $32.6 billion by the end of next year if the disease ravaging Guinea, Liberia and Sierra Leone spreads to neighboring countries in West Africa, the World Bank Group said Wednesday.

Oct 08 12:53

Panic Buying Ensues After FOMC Minutes Unleash Weaker Dollar

If you liked King Dollar, you'll love Dumping Dollar... Gold, Treasuries, and Stocks are surging after the release of the FOMC minutes suggested The Fed will keep rates lower longer. The USDollar is dumping - just as The Fed suggested it was worried about a strong dollar. Stocks remain negative on the week and below the levels of the last FOMC...

Oct 08 12:33

Dow jumps to triple-digit gain after Fed minutes

U.S. stocks on Wednesday jumped to fresh session highs after the release of minutes from the last meeting of Federal Reserve policy makers. The Dow Jones Industrial Average DJIA, +1.27% was last up 139 points after showing a gain of just 83 points shortly before the release of the minutes, which indicated that several top Federal Reserve officials wanted to re-write their guidance that short-term interest rates were likely to stay low for a "considerable time" -- but held off.

Oct 08 11:48

FLASHBACK - **LEAKED RECORDING FROM CFR SWINE FLU SCARE MONGERING

Oct 08 10:57

Libya Takes Goldman Sachs to Court to Recover $1.2 Billion from a Series of Derivatives Trades

Libya’s sovereign wealth fund took Goldman Sachs to court in London on Monday to recover $1.2 billion from a series of derivatives trades made during Muammar Gaddafi’s regime.

The Libyan Investment Authority claims that its international inexperience and a relationship of trust with the bank was “exploited” by Goldman Sachs, which disputes the allegations.

The Wall Street bank allegedly made $350 million in up-front profits from the trades, although the deals were rendered worthless for the LIA when they matured in 2011.

Oct 08 10:04

“Voters will remember this”: Scott Walker administration says $7.25 an hour is a “living wage”

Wisconsin Gov. Scott Walker has rejected a labor group’s effort to increase the state’s $7.25 an hour minimum wage.

The Milwaukee Journal-Sentinel reports that a coalition led by the group Wisconsin Jobs Now had seized on a provision in Wisconsin law which states that the minimum wage must be a “living wage” – defined as “reasonable comfort, reasonable physical well-being, decency and moral well-being.” However, the Journal-Sentinel noted, state law also allows governors to weigh such factors as the wage’s impact on the labor market. (Studies show that state increases in the minimum wage don’t harm job growth.)

Citing the living wage provision, the coalition last month urged the Walker administration’s labor department to raise the state’s minimum wage. In rebuffing the effort, the Walker administration isn’t just citing the other factors a governor is allowed to consider – it’s actually asserting that $7.25 an hour is a living wage.

Oct 08 09:59

IMF: China overtakes US as world’s largest economy

Chris Giles at the Financial Times flagged up the change. He also alerted us back in April this year that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than San Francisco, so it’s not entirely reasonable to compare countries without taking this into account.

Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market exchange terms, and in terms of purchasing power. On the purchasing power basis, China is overtaking the US right about now and becoming the world’s biggest economy.

Webmaster's Commentary: 

This is the reason that we may well be looking at a major war between the US and China; it would be the US government's (ill-advised) attempt to put China's economic growth on hold.

Oct 08 09:13

Sears shares tumble after report of vendor halting shipments

Shares of Sears Holding SHLD, -14.76% tumbled as much as 14%, before paring some losses, following a report that at least one vendor was halting shipments to the department store chain because insurance firms for the suppliers are seeking to reduce coverage.

Oct 08 09:11

Banker Pleads Guilty Over Libor Manipulation, In Secrecy

Oct 08 08:53

Koch Industries Responds to Rolling Stone – And We Answer Back

I find it, frankly, amusing that a company that has been convicted of six felonies and numerous misdemeanors; paid out tens of millions of dollars in fines; traded with Iran, and been so reckless in its business practices that two innocent teenagers ended up dead, attempts to impugn my integrity, and on the basis of my association with Mother Jones — where I worked as an editor in the late 1990s and early 2000s, on a team that was twice nominated and once awarded a National Magazine Award for General Excellence.

Oct 08 08:47

FLASHBACK - DHS Orders Bagpipes? So Much for Sequester Cuts

Apparently the head of the Department of Homeland Security is not even trying to save the government any money. Yesterday DHS ordered a new supply of musical instruments including bagpipes and drums. There is music writing software included in the order as well as the many small parts that go into caring for bagpipes.

I guess Napolitano didn’t get the memo. We are supposed to be saving money here! How exactly are we “securing the homeland” with bagpipes and drums? The problem here is, that Democrats keep saying that the sequester cuts were too much and that we weren’t going to be able to continue life as we know it without this money. Well obviously, that’s just not true.

Webmaster's Commentary: 

"No, no, no, no, NO! You don;t understand. The austerity is for you slaves, not us! You silly!!" -- Official White Horse Souse

Oct 08 08:26

Swiss Move to Back Franc with Gold for Real?

Asking the Swiss National Bank to hold a fixed portion of its assets in gold would hinder monetary policy, the government said today. Switzerland will vote on the initiative "Save Our Swiss Gold" on Nov. 30 that would force the central bank to hold at least twenty percent of its assets in gold. It would also forbid the sale of any such holdings and require all the gold be held in Switzerland. – Bloomberg

Oct 08 08:12

Ebola: Why don't we just ban flights from Africa?

The World Health Organization has said repeatedly it does not recommend travel bans on the countries affected by the Ebola outbreakl because that would leave the countries cut off from the rest of the world, “resulting in detrimental economic consequences, and hinder relief and response efforts, risking further international spread.” http://www.who.int/mediacentre/news/statements/2014/ebola-2nd-ihr-meet...

The key problem in travel bans, says the WHO and others, is that ending flights in and out of affected countries hinders these countries’ ability to receive the new supplies they so desperately need. As well, there are already not enough health workers on the ground in the affected countries. What foreign worker would willingly fly into the epidemic to offer assistance knowing they might not be allowed to fly back out?

Webmaster's Commentary: 

This is about protecting the profits of the airline corporations as we head into the holiday travel season. The fact is that the United States maintains a military airlift capability that is the rival of any commercial airline and can go wherever they need to go. The US Government is still treating Ebola as a political and economic issue. They want people to keep buying airline tickets. They want people to flood into the shopping malls for the Christmas shopping season. They want to make sure everyone shows up to vote next month. And mostly they don't want people to start thinking that maybe it is time to stop waging wars against countries on the other side of the globe and spend the taxpayer's money to protect the US from a major epidemic.

Oct 08 07:35

US lifts sanctions on Turkish arm of Russia’s biggest lender

The US Treasury Department has taken a bank off its “naughty” list, Turkey’s DenizBank, a subsidiary of Sberbank. Russia’s largest bank was placed under sanctions in September, and now DenizBank is no longer blocked from American capital markets.

Istanbul-based DenizBank fell under sanctions because it is more than 50 percent (99.85 percent) owned by Sberbank, which acquired it in September 2012. The Department of the Treasury sanctions apply to any bank that is majority-owned by a sanctioned Russian bank.

Sberbank acquired Denizbank, Turkey’s eighth largest, from Belgium’s Dexia for $3.5 billion, as part of an effort to grow outside the former USSR.

Oct 08 07:33

Russia to force card issuers to use domestic payment system

Two Russian deputies have submitted a bill to the State Duma that would require all foreign and domestic payment card issuers to work exclusively with the new National Payment System in Russia.

"National System of Payment Cards (NSPC) will be an operational and payment center, banks and international payment systems shall interact only with NSPC - we need to understand what processes are happening in the territory of Russia,” Vedomosti quotes Marina Mukabenova, one of two deputies who submitted the bill.

Some countries, like Turkey, are already using such a scheme, Mukabenova said.

Oct 08 07:32

Powerhouse Germany gets own spoonful of austerity

German industry is feeling the most pressure since the peak of the global financial crisis in 2009, putting Berlin in a difficult position as it preaches tough austerity to its neighbors. Russian sanctions are only exacerbating the economic misery.

Industry orders tumbled 5.7 percent in August from July, the fastest since January 2009 when they dropped 7.7 percent, the Germany Economy Ministry in Berlin said Monday. The drop was much higher than economists at Bloomberg (1.5 percent) and Reuters (2.5 percent) forecast.

Germany factory orders, adjusted for seasonal swings, were 4 percent less in August than in July, the biggest drop since 2009.

Oct 07 12:17

Walmart Cuts Health Care Coverage For Most Part-Timers In Wake Of Obamacare

Wal-Mart Stores Inc. plans to eliminate health insurance coverage for some of its part-time U.S. employees in a move aimed at controlling rising health care costs of the nation's largest private employer.

Wal-Mart told The Associated Press that starting Jan. 1, it will no longer offer health insurance to employees who work less than an average of 30 hours a week. The move affects 30,000 employees, or about 5 percent of Wal-Mart's total part-time workforce, but comes after the company already had scaled back the number of part-time workers who were eligible for health insurance coverage since 2011.

"We had to make some tough decisions," Sally Welborn, Wal-Mart's senior vice president of benefits, told The Associated Press.

Webmaster's Commentary: 

And what do you want to bet that starting 1 January 2015, NO ONE WILL BE WORKING OVER 30 HOURS AT WAL-MART?!?

Sometimes, workers may have pre-existing conditions which may make it impossible to find adequate health insurance, particularly with what Wal-Mart pays them.

Corporations, in their lust for profitability over everything else, tend to have the morals of a trout; this decision makes that painfully clear on the part of to Board of Directors at Wal-Mart.

Oct 07 12:11

The new AIG lawsuit should enrage every American taxpayer

Imagine you have a friend who drinks a lot and often.

Until now, they always seem to have a good time. He tells the best stories, gets all the girls. He’s the life of the party.

Then, one day, he wrecks his car. And you and some buddies, who happened to be in the neighborhood, see your pal trapped. Of course, you rush to the rescue. You try to break open the door with a tire iron. Ultimately, you smash the window and pull the poor fellow out. And just when you’d think this guy would sober up and see the recklessness of his ways, he looks you in the eye and says without blinking: “You need to pay for my door and windshield.”

This is the story of American International Group Inc. AIG, -2.10% and its longtime leader, Maurice “Hank” Greenberg.

Webmaster's Commentary: 

And THAT is real Chutzpah!

Oct 07 10:55

The new subprime is in auto loans: One third of all new auto loans are of the subprime variety. Repossession are up 70 percent.

Leave it to Wall Street to resurrect the subprime loan. This time, subprime has found a comfortable home in the automotive industry. In the car addicted US culture, subprime debt is back in a massive way. Subprime auto debt is the new risky debt product. This is a big deal. $924 billion in total auto debt is rummaging around the economy. What is even more disturbing is that delinquencies on auto debt are surging. Repossessions are up 70 percent because people simply can’t make their auto payments. What do you expect when you are pumping out subprime debt trying to churn more sales on marginal buyers? Most Americans are living paycheck to paycheck so taking on another debt payment isn’t necessarily a wise move. How big is this market? The latest data shows that a stunning one third of new auto loans are in the form of subprime debt. This is telling given that FICO is planning on being more lax with credit scores.

Webmaster's Commentary: 

The problem is not people who do not have credit. The problem is people who cannot find jobs to pay those car loans!

Oct 07 08:17

False Flag Warning: Khorasan Terrorist Group Is Back And A US Attack Is Imminent

Germany orders plunge to new lows. Euro zone sentiment falls in October. HP laying off 5,000 employees and the company could be split up. UK, US and Turkey attacking free speech on the internet. More cases of Ebola which might trigger more advanced screenings at airports. Hong Kong protests seems to be losing steam. New Islamic State document found implicating Russia in its plan. 5,000 paid mercenaries being trained in Saudi Arabia. Russia blamed for attacking JP Morgan. China implicated in cyber attacking companies. FBI director says Khorasan terrorist group is planning to attack the U.S. Be prepared for a false flag.

Oct 07 07:50

Europe's Triple-Dip Recession Arrives: German Industrial Production Crashes Most Since February 2009

Yesterday it was German manufacturing orders which cratered 5.7% in August following a freak, 4.9% rebound in July, prompting Goldman to warn that "the underlying dynamic has weakened further at the end of Q3" ...

... And then a few hours ago we finally got undeniable confirmation that Europe is once again in recession, its third since Lehman, only this one is worse: it is led by the "core" countries, with Germany in the forefront, a Germany which just reported industrial output which suffered its biggest monthly decline in more than five years in August.

Oct 07 07:45

Retired CUNY Professor Gets $560k/Year Pension: 'Darn Right I Deserve It'

McManus, who has written groundbreaking books on slavery, retired in February 2012 after teaching history and constitutional law for more than 50 years. His final salary was $116,364. “They don’t pay you much when you’re working, but the pension is certainly good,” McManus told The Post. “Darn right I deserve it.”

Oct 06 12:41

Obama Threatens More Sanctions Against Zimbabwe Over Russian-Platinum Deal

As Martin Armstrong exclaims, Obama is out of control. According to NewZimbabwe.com, Washington has said it will accelerate sanctions imposed against Harare in 2003, due to the Robert Mugabe-led government's closer ties with Russia over the US$3 billion Darwendale platinum project. Herald columnist Nathaniel Manheru (who is thought to be Mugabe's spokesman), reported, Washington explained its expectations on Zimbabwe, namely that Zimbabwe was expected (read required) to support those sanctions by avoiding any association with companies sanctioned by the Americans and their Western allies, or their subsidiaries or affiliates. Manheru said "it was ridiculous for the US to refuse to lift sanctions against Harare and then demand support for its measures against Moscow... This is where I am tempted to tell the American government to go and hang, hang on a banana tree, bums up."

Webmaster's Commentary: 

"Well, looks like we just found ISIS is Zimbabwe, if you understand what i mean!" -- Official White Horse Souse

Oct 06 12:29

Looting Operation: Corporate Elite Divvies up Detroit as Bankruptcy Plan Confirmation Looms

As the Detroit bankruptcy moves into its final stage, it becomes ever more clear that the corporate-financial oligarchy is implementing the wholesale privatization of an entire US city.

With the full backing of a federal court acting on behalf of powerful corporate and financial interests, a cabal of capitalist politicians and legal and financial bagmen are looting virtually all of Detroit’s basic public infrastructure—including street lights, garbage collection, the water and sewerage department, as well as the city’s world class art museum, the Detroit Institute of Arts (DIA).

Oct 06 10:38

War! What Is It Good For? (Hint: These 4 Companies)

Led by Lockheed Martin, the biggest US defence companies are trading at record prices as shareholders reap rewards from escalating military conflicts around the world.

Oct 06 10:37

US Government Debt Jumps by $1.1 Trillion in Fiscal 2014

When it comes to the Federal deficit, reliable numbers are as elusive as unicorns. Not that there aren’t plenty of numbers out there, but they don’t match reality. And reality is ultimately the change in the gross national debt which shows in its unvarnished manner just how much money the federal government actuallyhad to borrow to fill the fiscal holes.

Regardless of what has been proffered by the White House, the Congressional Budget Office, and others, the total gross national debt outstanding of the US of A hit $17.824 trillion in fiscal 2014 ended September 30. A jump for the fiscal year of $1.086 trillion.

Oct 06 10:15

Young and not buying into the American dream: Homeownership among young households is simply not picking up and shifting demographic trends.

If the American dream means owning a home, many younger Americans are opting out of that dream. Part of the reason may be a generational shift in having smaller families and a growing number of dual income no kid (DINK) households. That is part of it but a bigger reason is many younger Americans are financially in poor shape and unable to buy. Many are now part of a growing renter class. The recent Census data shows no reversal in this trend. Why would it? Many young Americans are also carrying high levels of student debt and in high cost areas like California, 2.3 million young adults are living at home with their parents because of financial challenges. This change has also impacted home builders since there is less of a need for large new homes when the demand is more for affordable rentals. Builders are keen to see this and that is why multi-family building permits are way up. What impact will this trend have on the housing landscape of America?

Oct 06 10:03

Biden's Speech Might Backfire on Washington: Former Assistant Secretary of Treasury

Speech of the US Vice President Joe Biden can backfire on Washington, as it embarrasses the European Union members and demonstrates the US has intimidated them, Paul Craig Roberts, former Assistant Secretary of the Treasury, believes.

"One of the possible consequences is that his speech embarrasses European governments by showing that Europe is Washington's vassal," Roberts told RIA Novosti on Friday. "The other is that by pressing Europeans to act against their own interests, Washington might have been too much of a bully and hurt its future influence in Europe."

US Vice President said Thursday that the United States and US President Barack Obama, in particular, had forced the European Union members to "take economic hits to impose cost" on Russia.

Oct 06 09:29

Surging dollar may be triple whammy for U.S. earnings

The suddenly unstoppable U.S. dollar is posing a triple threat to American companies' profits: driving up the costs of doing business overseas, suppressing the value of non-U.S. sales and, perhaps most worryingly, signaling weak international demand.

Oct 06 09:27

Hewlett-Packard to split into two public companies, lay off 5,000

Hewlett-Packard Co (HPQ.N) said it would split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, and eliminate another 5,000 jobs as part of its turnaround plan.

HP said its shareholders would own a stake in both businesses through a tax-free transaction next year, the details of which still needed to be worked out.

Oct 05 07:58

Consumers 'picking up bill'

Consumers have been left to pick up the bill for "poorly conceived and managed" contracts worth £16.6 billion for renewable energy, MPs have warned.

Oct 05 07:58

Dancing with The Bride of Dracula at the Ebola Debutante's Ball.

Oct 05 07:55

Manipulated Unemployment Rate Drops As The Economic Collapse Accelerates - Episode 483

Oct 05 07:43

WHY HAVEN'T LAWMAKERS BEEN INDICTED AND CHARGED FOR THIS?

"The Federal Deposit Insurance Corporation is encouraging banks to sign up illegal aliens in the banking system, calling the growth of the market "a compelling incentive for U.S. banks to enter this largely untapped market." And the FDIC program demonstrates that unbanked Latin American immigrants can be brought into the financial mainstream.

Webmaster's Commentary: 

Setting aside the illegality of this,. what is going on is that the bankers are trying to build a new bottom layer for their financial pyramid by offering loans to illegals, from which they can create new money out of thin air to keep the pyramid going. But that only works if there are new jobs for these new borrowers, which there are not. There are already 90 million legal Americans unable to find work. Every illegal that takes a job takes it away from a legal American. That legal American, in turn, is no longer able to pay back their loans to the banks. So the system will collapse anyway. This is the sort of mess one sees the nation get into when the government starts to believe its own propaganda, such as the claim that unemployment is below 6%!

Oct 04 07:56

Exclusive - G20 finalising flexible 'bail in' bond deal for big banks: sources

The world's biggest banks may be able to count surplus capital towards new buffers of special bonds being imposed by regulators, two sources familiar with draft proposals said.

In order to secure a deal the regulators have agreed to a more flexible approach to cater for differences in banking models across the world, both sources said.

The proposed new rule for the world's biggest banks is part of a wider plan for making banks safer after governments had to shore up lenders during the 2007-09 financial crisis.

Webmaster's Commentary: 

The banks will be made safer by transferring the risk onto the customers!

Oct 04 07:24

Biden says US 'embarrassed' EU into sanctioning Russia over Ukraine

“We’ve given Putin a simple choice: Respect Ukraine’s sovereignty or face increasing consequences,” Biden told a gathering at the John F. Kennedy Jr. Forum at Harvard University's Institute of Politics on Thursday.

The consequences were the sanctions which the EU imposed on Russia, first targeting individual politicians and businessmen deemed responsible for the crisis in Ukraine, then switching to the energy, defense, and economic sectors.

“It is true they did not want to do that,” Biden admitted.

“It was America’s leadership and the president of the United States insisting, oft times almost having to embarrass Europe to stand up and take economic hits to impose costs,” the US vice president declared.

Oct 03 17:08

Who Are Politicians Truly Representing? Russell Brand The Trews

Oct 03 15:32

German Push to Accelerate Bank Bail-Ins Joined by Dutch

Germany, the Netherlands and Finland want to speed up European Union plans to force losses on senior bondholders of failing banks, three European government officials said.

The three AAA rated euro-area states last week called for regulators across the EU to gain so-called bail-in powers as soon as 2015, rather than in 2018 as currently proposed, said the officials, who declined to be identified because the talks are private. The European Central Bank has warned that 2018 is “far too far away” for the new rules, which seek to insulate taxpayers and the euro area’s firewall fund from rescue costs.

Oct 03 14:46

Why Ben Bernanke Can’t Refinance His Mortgage

An employee of a think tank owns a house in the Capitol Hill neighborhood of Washington. He wants to refinance his mortgage, but the bank won’t give him a loan.

It is perhaps not the most shocking story in the world, but it becomes so when you learn that the think tank employee is Ben S. Bernanke, who was until earlier this year the chairman of the Federal Reserve, charged with setting the course of interest rate policy for the United States economy.

And it seems downright absurd when you consider that he now makes a reported $250,000 for giving a speech and has signed a book contract that is surely in the seven figures. His income this next couple of years will surely dwarf the value of his house (he and his wife bought it for $839,000 in 2004, and it is currently assessed at $815,000, according to District of Columbia property records).

Oct 03 11:20

Labor Participation Rate Drops To 36 Year Low; Record 92.6 Million Americans Not In Labor Force

While by now everyone should know the answer, for those curious why the US unemployment rate just slid once more to a meager 5.9%, the lowest print since the summer of 2008, the answer is the same one we have shown every month since 2010: the collapse in the labor force participation rate, which in September slid from an already three decade low 62.8% to 62.7% - the lowest in over 36 years, matching the February 1978 lows. And while according to the Household Survey, 232,000 people found jobs, what is more disturbing is that the people not in the labor force, rose to a new record high, increasing by 315,000 to 92.6 million!

And that's how you get a fresh cycle low in the unemployment rate.

Oct 03 10:55

‘Obama to be remembered as someone who betrayed his supporters’

President Obama has turned out to be another failed big government president, who put America into a new war, spied on its own citizens, and made a disastrous health care reform, Executive Director of the Libertarian Party Carla Howell told RT.

RT: The US strikes on ISIS have already cost it around $780-930 million, which is not pleasant news for the American taxpayers but makes a profit for the industries involved. Does President Obama even know about discontent among his citizens?

Carla Howell: I’m sure he is fully informed; he has got an enormous staff to keep him informed of what is going on. Clearly, what he is trying to do is take credit for ending the war in Iraq, and yet at the same time he is beholden to the military industrial complex in America, their special interests, that want more military funding regardless of whether our Generals even want it or not. So he is trying to walk that line.

Webmaster's Commentary: 

This President has been an epic fail on everything in which he has intervened.

On immigration; wars in the Middle East; Obamacare; Ebolagate; IRSgate, APgate, and NSAgate, he continues to to undercut working Americans, and makes life worse for most American people.

But you have to understand that such behaviour is completely predictable for a man beholden to the large corporations (including the banks) which have funded the election cycles in which he was (allegedly) elected and re-elected.

Large corporations love illegal immigration, because it cuts the cost of doing business; large corporations love wars, because wars mean profit, for so many companies; and large pharmaceutical corporations love illness, because treatments - rather than cures - are far more profitable.

His faux populism is just an act, and not a terribly convincing act at that; no more, no less.

At the end of the day, this man is a slave to all those who put him in power for one reason, and one reason only; profit.

And he has, and continues, to deliver that for them.

Oct 03 09:18

U.S. factory orders post record decline on aircraft payback

New orders for U.S. factory goods posted their biggest decline on record in August, payback for an aircraft-driven jump a month earlier.

Oct 03 09:18

Fannie And Freddie Shares Are Collapsing, And That's Bad News For Some Big Hedge Funders

Shares of Fannie Mae and Freddie Mac opened down about 40% respectively after investors lost a suit to change who collected the profits from the two mortgage insurers' dividends.

Since the financial crisis, the U.S. Treasury has been collecting almost all of Fannie's and Freddie's profits as part of the government's bailout deal with the companies.

Oct 03 07:48

Ebola Virus Hammers Airline Stocks, Boosts Pharma Stocks

The Ebola virus has become the unlikely arbiter of the latest winners and losers in stocks.

The first diagnosis of an Ebola patient in the U.S. may be driving airline stocks lower, while shares of pharmaceutical companies move higher.

It's not the first time an international health concern has led to fears that people will travel less frequently around the world.

"I think airlines are down for reasons beyond just Ebola, but people may remember that SARS was quite negative for air travel," Neal Dihora, Morningstar senior equity analyst, told ABC News.

Oct 03 07:35

BEX ALERT - US jobless rate falls to 6-year low of 5.9 pct.

U.S. employers added 248,000 jobs in September, a burst of hiring that helped drive down the unemployment rate to 5.9 percent, the lowest since July 2008.

Webmaster's Commentary: 

And JUST in time to help the Democrats in the mid-term elections next month!

This claim of 5.9 unemployment is about as real as Saddam's nuclear weapons. Looking at the labor participation rates at the US Bureau of Labor Statistics, we find that the labor participation rate for September 2014 is actually 62.7%. That is the percentage of Americans willing and able to work who actually have a job. That means the real unemployment rate, Americans willing and able to work but who don't have a job, is actually at 37.3%, and even this number is suspect due to various manipulations under the rubric of "seasonal adjustments". The Bureau of Labor Statistics counts a part time job as a job, and one person working three part-time jobs as three jobs for the purposes of this calculation. Looking at the charts, it is clear that the labor participation rate has been in a decline all summer long.

Oct 02 14:04

No Obamacare Bailouts for Insurers Without Congressional Approval, Says GAO

y forcing Americans to buy their products, President Obama's signature Affordable Care Act is widely seen as a winning proposition for health insurance companies. Conscripted customers! What more could a well-connected business want? But the law's complex rules require insurers to cover the costs imposed by older and ailing customers with the payments from young and healthy customers. Potentially, a company could end up with a disproportionate ratio of sick customers drawn by the promise of subsidized coverage—drowning the seemingly winning proposition in red ink. If that happens, says the Government Accountability Office (GAO), the administration can't bail out insurers without permission from Congress.

Oct 02 13:28

Toxic finance: Reckless payday lender Wonga wipes mountain of debt

Thousands of customers who took loans with controversial pay day lender Wonga are to have their debts written off, in an action expected to cost the ‘legal loan shark’ more than 200 million pounds.

The company will wipe the debts of 330,000 customers who are trapped in arrears of 30 days or more, while a further 45,000 customers will get to repay their loans exempt from interest.

Webmaster's Commentary: 

If Wonga can do it, so can the FED!

Oct 02 13:20

Send them to Plum Island with Hannibal Lecter.

There will be no peace. There will be no harmony of social equilibrium. There will be plenty more conflict, an increase in plagues like Ebola and continuously intensifying Stasi type police composed of moronic thugs and this last you will have UNTIL you strip the 1% of their money and influence and the central bankers are rendered obsolete.

Oct 02 10:54

Federal Judge: Stockton pensions can be cut in California bankruptcy

Public-employee pensions are not protected when a city goes belly-up, according to a ruling Wednesday by the judge overseeing Stockton’s much-watched federal bankruptcy case. Judge Christopher Klein’s few words have re-energized the state’s disheartened pension-reform movement – and left the nation’s most-powerful pension fund reeling.

One can’t go a day in Sacramento without hearing about a “historic” piece of legislation or a “groundbreaking” decision, but the Stockton case – held in a downtown Sacramento courthouse – could change everything on the pension front. Klein said in the verbal ruling that pensions are just another contract: “Impairing contractual obligations – that’s what bankruptcy is all about.”

Oct 02 09:52

Russia, Iran to boycott US dollar in bilateral trade

Russia and Iran have agreed to use their own national currencies in bilateral trade transactions rather than the U.S. dollar.

Iran’s IRNA news agency reported that the plans were announced in a meeting on Tuesday in Tehran by Iranian business magnate and head of the Iran-Russia Joint Chamber of Commerce, Asadollah Asgaroladi.

An original agreement to trade in rials and rubles was made earlier this month in a meeting between Russian Energy Minister Alexander Novak and Iranian Oil Minister Bijan Namdar Zanganeh.

Similarly, Russia and China also agreed to trade with each other using the ruble and yuan in early September, following a Russian deal with North Korea in June to trade in rubles.

The move away from the U.S. dollar is yet another reaction to Western sanctions placed on Russia since it annexed Crimea from Ukraine in March.

Webmaster's Commentary: 

For the zillionth time: Russia did not "annex" Crimea; after the duly elected Ukrainian government was overthrown in a coup, Crimea voted, in what was generally described as a free and fair election, to join the Russia Federation.

Annexation of Crimea never, ever happened, and that is the truth.

Whoever wrote that last paragraph should have someone manifest in their dreams, and sing badly to them...for the rest of their miserable life!!

But this is making Western sanctions harder on those who imposed them, rather than on the countries upon which they were imposed.

And neither Iran nor Russia will be hurting from this move.

Oct 01 15:54

Century of Enslavement: The History of The Federal Reserve

Webmaster's Commentary: 

This is a full-length feature film documentary. Bookmark and save for when you have an hour and a half to watch it!

Oct 01 15:16

FLASHBACK - James Traficant - Americans are Prisoners of the Fed

American Patriot, Congressman James Traficant, left, died Saturday at age 73. He represented Youngstown Ohio from 1985-2002 - re-elected eight times. He was framed for "corruption" in 2002, expelled from Congress and spent seven years in prison.

In a 1993 speech (below), he explained that Americans had lost their freedom because their personal property and wealth are pledged against the national debt. No doubt, this is the rationale behind the emergence of the US Police State. The international bankers are ensuring they can collect. Terrorism is just a pretext. Just two months ago, Traficant began a grassroots campaign "Project Freedom USA" to put people pressure on Congress to get rid of the IRS and "divorce" the Federal Reserve.

Oct 01 14:02

Goldman Global Leading Indicator Drastically Revised, Collapses Into "Confirmed Slowdown"

Just 2 short weeks ago, Goldman nervously admitted that possibly perhaps maybe their Global Leading Indicator was indicating a "slowdown" was coming, but remained hopeful that the rest of the month would see data pick up and prove them wrong. Now that the final data has been released for the various components of the index, the 'exuberant' recovery of the last few months has been massively revised lower. As Goldman itself notes, the September Final GLI came in at 2.6% YoY, providing a clear signal of "Slowdown", with the data now in hand further suggesting that the GLI first may have entered the ‘Slowdown’ phase back in July.

Oct 01 14:01

Russia’s second biggest lender reduces dollar loans

Russia’s second biggest bank VTB has reduced its US dollar lending, Andrey Kostin the bank’s head said on the sidelines of the Russia Calling! forum on Wednesday.

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA