ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Feb 21 10:53

The World’s Best Kept Investment Secret

Feb 21 05:51

The Fate of Final Rallies

Feb 21 05:48

Why Is Maduro Still Pushing The Petro?

In a recent Wall Street Journal article, Mary Anastasia O’Grady writes that Venezuela’s “National Superintendency for the Defense of Socio-Economic Rights is reportedly pressuring stores to accept the government’s new digital fiat currency, the petro.” The Venezuelan government claims its digital currency, which launched in early 2018, is backed one-for-one by a barrel of oil. The petro is also intended to circulate at a fixed exchange rate with the bolívar soberano, the latest iteration of Venezuela’s fledgling currency.

Ms. O’Grady quotes me summarizing some of the work I have done with Josh Hendrickson and Thomas Hogan, which shows that a government can get its citizens to use its preferred money so long as it is sufficiently big or is willing to levy sufficiently large punishments. But she leaves another question unanswered: why would the Venezuelan government prefer the petro?

Feb 21 05:37

Billion Dollar Family Offices Now Get Direct Access To Investment Bank Trading Desks

In what probably should come as a surprise, but most likely won't, it appears that multi-billion family offices are getting access to trading desks that smaller offices and retail traders can't access.

We know, you're shocked.

Offices with at least $1 billion are increasingly bypassing private bankers and are allowed to go direct to investment bank trading desks, according to Bloomberg.

Feb 20 19:54

JPMorgan Stashes MASSIVE Amounts Of Silver…

Feb 20 16:11

Options Traders Showing No Fear

Feb 20 15:35

Never Go Full Retard

Feb 20 14:19

Momo Massacre? Nasdaq Is Crashing As Major Factor Reversal Strikes

While the catalyst for this sudden move is unclear, the fact is a notable regime shift is underway today in factors as the long-momo-short-value trade is reversing fast as Treasury yields tumble.

Is this the start of a September-like reversal?

Notably the almost incessant rise in low-vol strategies is getting hammered today...

Webmaster's Commentary: 

It will be interesting to see if these trends continue in pre-trading hours, and we have an absolute bleed-out tomorrow, or if the Plunge Protection Team will be able to earn its money, before the start of the opening bell....

Feb 20 14:11

China Injects A Record 5 Trillion Yuan In New Debt To Arrest Economic Crash

There was a palpable sense of disappointment last night when instead of cutting its benchmark overnight interest rates as some - notably Goldman Sachs - had speculated might happen, the PBOC announced that it would only lower its benchmark 1- and 5-year lending rates, i.e., Loan Prime Rate, by 10 bps to 4.05% and 5bps to 4.75% respectively, a move that was widely anticipated.

Webmaster's Commentary: 

This response by the Chinese government to this pandemic, underscores just how horrific Chinese leadership sees this getting.

Feb 20 12:19

3 Tail Risks That Could Shock The Market

Feb 20 11:31

“Wages Slavery and Chattel Slavery”

As the Lowell system of factory work became more prevalent, so too did the public debate over the justice and morality of such labor. Labor organizers routinely called for a reduction in working hours, citing the ill effects upon the health and morale of workers. Although legislators were often slow to intervene in freely-entered contracts between management and labor, in most states, protective legislation of various kinds did eventually pass, if only to alleviate the concerns and criticisms of labor reformers like Orestes Bronson and William West.

The abolitionist and former slave Frederick Douglas after several years of experience as a “free man” concluded: “experience demonstrates that there may be a slavery of wages only a little less galling and crushing in its effects than chattel slavery.”
https://betweenworldandus.com/2016/05/26/chattel-slavery-v-wage-slaver...

Learn about Five Forms of Slavery

Feb 20 10:12

‘Death dividend’: British arms maker BAE Systems blasted on Twitter after announcing big sales growth for ‘good year’ 2019

Britain’s biggest arms manufacturer, BAE Systems, has come under a hail of fire on social media after proudly announcing the “greatest increase” in dividend profits in eight years as part of their 2019 financial results.
BAE Systems tweeted a video on Thursday in which their chief executive Charles Woodburn gleefully revealed that 2019 had been a “good year” for the world’s fourth largest defense company.

BAE’s announcement triggered an avalanche of criticism on Twitter, with many commenters hammering the company for its boastful theme and questioning whether providing bombs that have led to deaths around the world should be something to be proud about.

One person simply tweeted: "Death dividend," while another sarcastically wrote: "So glad killing people has brought you a nice dividend."

Webmaster's Commentary: 

All well and good to criticise BAE; but what about the US/British foreign policy which makes these merchants of death so damned profitable?!?

THAT... is where these activists really have to start, in a peaceful, logical, and responsible way.

Feb 20 09:33

Gold Reaches New All Time Record Over €1,500/oz, Breaks Over $1,600/oz and Silver Surges To $18.44/oz

Gold soared to new record highs in euros today at €1,500.11/oz and broke through the important $1,600 level to as high as $1,619.18 per ounce as traders and investors diversify out of more pandemic exposed risk assets to traditional safe havens

? Silver surged to $18.44/oz and is 4% higher this week, while palladium has gone parabolic and is up another 12% this week which takes the gains in 2020 alone to over 36%; we expect gold and particularly silver to follow palladium’s lead in the coming months (see just released video below)

? Safe haven gold is just a slight jump away from passing its February 8 intraday high and hitting its highest level in dollar terms in seven years; the all time record highs in gold in euro terms will be seen in other fiat currencies including dollars in the coming months.

Feb 20 09:32

Gold Chased The Money Supply Higher

Q: “Why is the Fed reluctant to let the boom-bust nature of markets play out?”
A: “Because it what’s they’ve always done [since the Fed was founded in 1913]…Once you’re in power, you’re going to do what you can to defend the system as it is”

Feb 20 09:00

Thunberg Was Manufactured by Green Tech Industry

This comment by "Terry" section under this article:
Greta Thunberg Adds Fuel to Blockade Fire

(FACEBOOK wouldn't allow me to post this.)

Subject: You Might Find This Interesting:...

? Thought you might be interested...This was sent by someone who was interested in knowing what's what, dug around, and found the following....

"Having stumbled across an interview with Greta Thunberg's captain of the sailing vessel that brought her across to New York, I was very surprised at what he said. He was flying back to Europe from New York and 3 others were flying from Europe to New York to sail the vessel back. So that is four flights to save her one flight. Obviously a PR stunt. But it got me curious as to who the heck was paying for these flights? This is a quick synopsis of what I found out.

Feb 20 08:47

Number of millionaires by country 2018-2019

Feb 20 07:55

The next bear will be the most severe?

Feb 20 07:01

Russia Is Defeating The U.S. In The Middle East Oil Game

Authored by Simon Watkins via OilPrice.com,

Historically, Russia goes to great lengths to hide or disguise its strategic intentions but it clearly feels empowered enough in the Middle East to very obviously stake its claim in the region – excluding, for the time being only, Saudi Arabia – by stating that a slew of Russian companies are to spend up to US$20 billion on oil projects in Iraq in the near term.

“Since [U.S. President Donald] Trump outlined the new U.S. foreign policy of not engaging in conflicts abroad unless they were directly aligned with U.S. interests [October 2019], and then effectively withdrawing from Syria and from supporting the Kurds, Russia and China have felt that they can bring forward their plans to bring Iraq within their geopolitical arc of influence,” a senior source who works closely with Iraq’s Oil Ministry told OilPrice.com last week.

Webmaster's Commentary: 

And after all the US blood and money spent, who actually won in Iraq?!?

Folks, read 'em and weep; it is China and Russia; NOT the USA.

Iraq, China launch 'oil for reconstruction' agreement

America’s Failed Strategy in the Middle East: Losing Iraq and the Gulf

This article goes on to state: "More broadly, the United States has steadily lost the confidence of its Arab strategic partners in the Gulf region. The United States ignored their advice during the invasion in 2003 – making Iran the dominant military power in the northern Gulf while also turning Iraq into a constant source of unstable weaknesses and concern. Beginning with President Obama, the United States has bullied its allies over burden sharing even when they were spending some 10% of their GDP on military forces – raising growing questions about U.S. willingness to main its military role in the Gulf and support the security of its allies. The United States has instead sanctioned and provoked Iran – without effectively deterring it or properly reacting to Iranian military actions – stood by as China created a major base and port facility in Djibouti, and enabled Russia, Turkey, and China to become growing players in Gulf affairs."

And then we have the following story from last September, which of course, never made it to the presstitute corporate press: Russia’s Stroytransgaz Bags Iraq E&P Deal The article goes on to state: "Iraq’s Oil Ministry has signed up US-sanctioned firm Stroytransgaz to explore and potentially develop reserves in the western Anbar province. The yet-to-be-finalized deal sees yet another Russian firm target Iraq’s underexplored acreage.
Russian firm Stroytransgaz was awarded a 34-year contract this week to explore and produce oil and gas in western Iraq’s Block 17, a ministry statement confirms."

How in the name of heaven was this allowed to happen, under the watch of successive administrations, including those of President George Bush; President Barak Obama; and President Donald Trump?!?

One would have thought that somehow, such an outcome would never have been allowed by any of these administrations, let alone all of them; and yet, looking at current events, this outcome was allowed to happen

The only logical explanation to which I can attach any possible credence, is that no matter which party was actually in control, and (allegedly) in charge of the government, the people who were hired to run these scenarios, were utterly, pathologically incapable of seeing any of them through to their most logical conclusions.

Or, when these logical conclusions were expressed to superiors, they were shouted down, courtesy of a collective US leadership hubris, infused with the collective "magical belief" that their "vision" could ultimately trump the butt-ugly prognostications of the people they hired to actually, logically, figure out how these potential scenarios would play out.

This has caused some tremendous info-gaps, at the White House, Pentagon, State Department, and Congress, and this needs to be addressed, and corrected, ASAP; of course, the question must be asked; with so much credibility blown by agencies responsible for US foreign policy, which one will be willing to take the blame?!?

The short answer is, "Absolutely none!", which means that the US is going to continue to advocate, and embrace, an absolutely dysfunctional, disjunct; and dystopian foreign policy, right up until this bites us, collectively, in a very sensitive place in the human anatomy; and when that moment hits, unfortunately, it may well be too late to change course.

Feb 20 06:56

QE won't cure the coronavirus or the economy

Feb 20 06:11

New Estimates Suggest Chinese Tech Shipments Are About To Crash

Now that Apple has opened the floodgates and made it entirely clear that China's economic collapse will slash revenue guidance on the year and lead to production woes through April, an onslaught of earnings downgrades from other top technology companies with significant operations in China could be imminent.

Evidence grows by the day of supply chains grinding to a halt as the second-largest economy in the world falters (as described here last week)...

We've described how China's economic output remains frozen, and even if supply chains were able to restart, companies don't have enough capital to cover wages, or have delayed or stopped paying workers, suggesting that the Covid-19 outbreak has left businesses on the brink of disaster. Worse, workers can't freely move around the country, and many are subjected to travel restrictions and quarantines, which has forced a massive labor shortage.

Webmaster's Commentary: 

To all of you who like your "big box shops", whatever the names of those venues might be; if there is any stuff you buy which originates in China, now might be the time to stockpile, because with Chinese factories and fulfillment centers shut down, it might be quite a while before those products come in again.

Feb 20 05:59

EU Auto Registrations Plunge In Dismal Pre-Coronavirus January Numbers

For months we have been commenting about how the global auto market is mired in recession. Most recently, we have been highlighting how China, one of the world's largest economies and auto markets, has been exacerbating things with terrible sales numbers, failed subsidy ideas, disconnect from Beijing and, obviously, the coronavirus.

Many of the new numbers out of China, including a dismal January sales number and expectations for an awful February, are being blamed on the coronavirus (despite the fact that January's number doesn't really even include the virus impact yet).

Now, the numbers out of Europe - where they can't just turn around and place the blame on the coronavirus, are looking equally as awful and are sounding a much bigger alarm about the global automotive industry.

Feb 20 04:46

The U.S. Economy Is Rigged (& Not In Your Favor)

While the public cannot identify exactly how the system is rigged, it is nonetheless correct: elites in business and government collude regularly to run the American economy to their own advantages and have increasingly done so for decades.

Feb 20 04:45

Terrifying Charts Show China's Economy Remains Completely Paralyzed

In our ongoing attempts to glean some objective insight into what is actually happening "on the ground" in the notoriously opaque China, whose economy has been hammered by the Coronavirus epidemic, last week we showed several "alternative" economic indicators such as real-time measurements of air pollution (a proxy for industrial output), daily coal consumption (a proxy for electricity usage and manufacturing) and traffic congestion levels (a proxy for commerce and mobility), before concluding that China's economy appears to have ground to a halt. These observations were subsequently reaffirmed when we showed that steel demand, property sales, and passenger traffic had all failed to rebound from the "dead zone" hit during China's Lunar New Year hibernation.

Feb 20 04:23

The World's Top LNG Producer Is In Trouble

International expansion in Australia, Qatar, Mozambique and Egypt, combined with a continuously strong US shale gas export drive, is pushing down prices further. Analysts have warned before that a possible LNG glut could end in tears, but nobody was expecting that the market would also be hit by a demand side shock such as China’s coronavirus. The last couple of weeks, major LNG export cargoes to China have been diverted to other clients or are still looking for a destination in an already woefully oversupplied market.

Feb 20 04:22

As China Grinds To A Halt, Firms Can No Longer Afford To Pay Workers

With every passing day that its economic disintegration is not reversed, China inches closer to what may be a very violent tipping point, one which sets billions of angry, starving, broke and quarantined citizens against the communist party oligarchy.

As China's economic output remains literally frozen, a new report suggests that many Chinese companies - which never factored for this type of calamity - don't have enough capital to cover wages, or have delayed or stopped paying workers, suggesting that the Covid-19 outbreak has left businesses on the brink of disaster.

Feb 20 04:20

"Keenly Aware"- FDA Braces For Drug And Medical Supply Shortages From China 

With every week its economic disintegration is not reversed, China is triggering the most massive supply chain "shock" the world has seen since the last financial crisis, now spreading from East to West.

The next impact won't just be Europe, which we've already mentioned the closure of a Fiat Chrysler Automobiles plant in Serbia, but will be America and could first be in the form of drug and medical supply shortages.

The FDA warns, "we are keenly aware that the outbreak will likely impact the medical product supply chain, including potential disruptions to supply or shortages of critical medical products in the U.S."

Feb 20 03:27

Trump’s War on Huawei Devolves to a Cringeworthy Embarrassment for the US

Humiliated by the United Kingdom’s refusal to exclude Huawei from its 5G broadband network, the Trump Administration has doubled down on its attempts to stop China, with poor prospects for success.

The American response includes prosecution of Huawei under the Racketeer-Influenced and Corrupt Organization (RICO) statute, drafted to combat organized crime.

It also includes proposed regulations that would stop the sale of any US components to Huawei and China’s second-rank telecommunications firm ZTE if 10% of their production comes from American technology.

Feb 19 22:44

Tesla Launches Turf Driven Car For Irish Market

IN A BID to get Ireland on the right environmental track and to push against the resistance to fight climate change on a local level, electric car manufacturer Tesla has launched its first turf-powered car.

Feb 19 12:56

Where to Get Income in a Low-Yield World

Feb 19 09:55

Online v Brick & Mortar

Feb 19 09:27

European Gas Prices Set To Slump

Feb 19 08:57

Most Expensive Currencies In World 2020

Feb 19 08:27

Want To See How Bad It Really Is?

Feb 19 07:10

Fund Manager: The Fake News Economy

Feb 19 07:08

Financial Feudalism - The New American 'Dream'

“Happy 18th Birthday! Meet your new Daddy,” read one website advertisement. “Do you have strong oral skills? We’ve got a job for you!” cooed another.

A message on another billboard directed at the “daddies” was more blunt: “The alternative to escorts. Desperate women will do anything”…

SeekingArrangement was founded by Las Vegas tech tycoon Brandon Wade. Wade is apparently worth somewhere in the neighborhood of $40 million. His motto is, “Love is a concept invented by poor people”…

SA also markets itself as an antidote to student debt. In the U.S. and elsewhere, college students are enduring financial instability and hardship. Because of rising college fees and rent, and the lack of time available for work during studies, many women are extremely vulnerable to exploitation.

Feb 19 06:42

Bonner: Federal Reserve Sinks Into Funny-Money ‘Normalcy’

The Fed knows that the phony boom depends on more and more phony money. Take the money away and the whole thing implodes. Them’s just the facts of life.

The funny money enters the financial system as debt. It is lent out… increasing the amount of “liquidity”… but also increasing the amount of debt.

Feb 19 06:39

Jaguar Land Rover UK Factory To Run Out of Chinese Parts In Weeks

The amount of supply chain disruptions that are coming out of the woodwork is nothing short of astonishing. This could shock the hell out of the global economy, forcing a trade recession that would lead to a readjustment of stock prices. At this moment, central bankers are terrified, because monetary policy is virtually ineffective during a virus outbreak.

Jaguar Land Rover (JLR) warned Tuesday that their UK factory has enough Chinese parts for the next two weeks, but heading into March, their production lines could grind to a halt due to the lack of parts, reported Reuters.

Feb 19 06:38

The Angels Are Falling: Macy's Downgraded To Junk; Stock Tumbles

Update: Make it a two for one fallen angels because roughly at the same time that Macy's was getting downgraded, French car giant - and fomer investment grade icon - Renault was also cut to junk when Moody's downgraded the auto maker from Baa3 to Ba1, the highest junk rating, after the company posted its first annual loss in a decade.

* * *

Feb 19 06:37

China Claims 95% Of SOEs Have Restarted Production. There's Just One Problem...

According to Ren Hongbin, China's vice director of state-asset regulator Sasac, more than 95% of SOEs in oil, petrochemical, communication, power grid and transport sectors have restarted production despite coronavirus outbreak, with the most severe virus impact in civil aviation and tourism sectors.

Ren reassured the world that the impact of the virus was "temporary" and China will maintain its operational targets for SOEs.

Feb 19 05:26

Silver Bullion To $50/oz and When to Sell Gold or Silver

Silver bullion is set to outperform gold, other precious metals and the vastly over valued risk assets of stocks and bonds in the coming years

? The record nominal high of $50 in 1980 and in 2012 will almost certainly be seen in the next two years

Feb 19 05:26

EU THREATEN TO MAKE TRADE WURST

In scenes first brought to life by Yes Minister, the EU are now threatening the very existence of the Great British banger. To avoid confusion, Boris is safe…

The salaming news comes as farmers say they will have no legal basis to slip their sausages into European markets after the end of the transition period in December.

At the moment the EU has no health certificate for goods such as fresh sausages or mince, as it has never imported the goods from third countries. Boris better be prepared to start lobbying for our frankfurters in Frankfurt…

Feb 18 12:58

Why the US is losing its war against Huawei

According to a Chinese analyst, Huawei might drop the price of its chipsets by 30% in a price war with the Americans, driving them out of the whole of the Asian market. In that case, the analyst said, Nvidia would run out of cash in 18 months and Qualcomm would run out in 24 months, forcing them to shut down research and development. That would mark the end of American importance in the semiconductor industry that the US created.

Feb 18 12:00

Trump, Saudi Arabia and the End of the Petrodollar

In late 2016, Obama vetoed the Justice Against Sponsors of Terrorism Act (JASTA). The bill would allow 9/11 victims to sue Saudi Arabia in US courts.

With only months left in office, Obama wasn’t worried about the political price of opposing the bill. It was worth protecting Saudi Arabia and the petrodollar system, which underpins the US dollar’s role as the world’s premier currency.

Feb 18 10:29

The Spin War Coronavirus: Media and Politicians Take Anti-China Fear Mongering to New Levels

By Alan Macleod

Starting in Wuhan in December, the coronavirus outbreak has spread across China, infecting around 64,000 people and worrying the rest of the world. Fueling the panic, media have been printing alarmist scare stories and politicians peddling false information.

Feb 18 09:51

Are Women Destroying Academia? Probably

Actually it is a certain group of men who are pushing feminism to destroy those they consider their enemies. Think International Banksters and their fellow travelers.

Feb 18 09:20

STILL No Non-East Asian Deaths From Corona—But CNN’s Sanjay Gupta Won’t Admit It

The story so far: There is still no confirmed case of the Coronavirus killing anyone other than ethnic East Asians. The Drudge Report today (February 15) features FRANCE REPORTS FIRST DEATH OUTSIDE ASIA... but the underlying story, from Bloomberg via Yahoo Finance, says the victim was an “80-year-old Chinese tourist.” Drudge, of course, is just scaring up clicks. But why does the rest of the Main Stream Media, and the medical Establishment, want to suppress a possibility that could relieve fears around the world: that the Coronavirus disproportionately impacts, and perhaps only kills, East Asians?

Now read on.

Feb 18 06:46

STUDY SHOWS 39% OF MILLENNIALS WOULD PREFER TO SPEND A WEEK IN JAIL IF THEIR STUDENT DEBT WAS WIPED CLEAN

“We want to give you a better life than the one we had.” This is a phrase many millennials have heard at some point during their life from their parents, especially with respect to today’s average debt.

Yet, both the millennial and post-millennial generations (Generation Z) are on track to becoming the most educated yet, with one major problem—they both face a major student loan debt catastrophe. And not all debts are created equal—especially when we talk about student loans.

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