ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Oct 17 04:15

GLOBAL DEFAULT OUTLOOK

Oct 17 02:48

CENTRAL BANKS ASSETS

Oct 16 12:25

Good Or Bad Q3 2020 Earnings Season?

Oct 16 11:37

Tesla's "Gigafactory" In Berlin Just Had The Water Shut Off For Not Paying The Bill

While Elon Musk was busy making high school style "420" and "69" jokes on Twitter, the water at his $400 billion company's latest project - the construction of a Gigafactory in Berlin, Germany - was being turned off for non-payment.

It's likely a wonderful glance into what the priority structure looks like at Tesla.

There are multiple reports coming out of Germany that Tesla had to stop their construction as a result of the water being turned off, according to electrek.

One German publication, Heise said: "Tesla is temporarily unable to continue building its factory in Grünheide near Berlin. The Strausberg-Erkner water association turned off the water because Tesla did not pay the money, said association spokeswoman Sandra Ponesky on Thursday in Strausberg."

Oct 16 11:33

Revealed: millions of Americans can’t afford water as bills rise 80% in a decade

Millions of ordinary Americans are facing rising and unaffordable bills for running water, and risk being disconnected or losing their homes if they cannot pay, a landmark Guardian investigation has found.

Exclusive analysis of 12 US cities shows the combined price of water and sewage increased by an average of 80% between 2010 and 2018, with more than two-fifths of residents in some cities living in neighbourhoods with unaffordable bills.

In the first nationwide research of its kind, our findings reveal the painful impact of America’s expanding water poverty crisis as aging infrastructure, environmental clean-ups, changing demographics and the climate emergency fuel exponential price hikes in almost every corner of the US.

Oct 16 07:27

It’s Better To Lose Money For Now

Oct 16 07:01

Hacking Wall Street to Close the Wealth Gap

Oct 16 06:41

Smile! An Easy Index For Tracking Gold Prices

Oct 15 12:13

Traders betting on stock declines made $344 billion in just one month as coronavirus ravaged the market

Investors betting on US stocks to tumble profited billions as the S&P 500 slid from its record high to a 29% decline in a single month.

Short-sellers saw roughly $344 billion in mark-to-market gains in the period from the S&P 500's February 19 peak to March 19, according to financial analytics firm S3 Partners. The month also saw the total amount of shares sold short jump by about $41 billion as market volatility surged and fueled the biggest single-day losses since 1987.

Short positions involve investors borrowing shares to buy them later at a cheaper price. The more an asset's value drops, the more an investor profits from their short.

Oct 15 06:38

Exclusive: America's true unemployment rate

A person who is looking for a full-time job that pays a living wage — but who can't find one — is unemployed. If you accept that definition, the true unemployment rate in the U.S. is a stunning 26.1%, according to an important new dataset shared exclusively with "Axios on HBO."

Why it matters: The official unemployment rate is artificially depressed by excluding people who might be earning only a few dollars a week. It also excludes anybody who has stopped looking for work or is discouraged by a lack of jobs or by the demands of child care during the coronavirus crisis.

If you measure the unemployed as anybody over 16 years old who isn't earning a living wage, the rate rises even further, to 54.6%. For Black Americans, it's 59.2%.

Oct 15 06:36

Doug Casey: “This is Going to be One for the Record Books”

Just because society experiences turmoil doesn't mean your personal life has to. And a depression doesn't have to be depressing. Most of the real wealth in the world will still exist—it will just change ownership.

What is a depression?

We’re now at the tail end of a very long, but in many ways a very weak and artificial, economic expansion. At the same time we’ve had one of the strongest securities bull markets in history. Both are the result of trillions of new dollars created over the last decade. Right now very few people are willing to consider the possibility of tough times—let alone The Greater Depression.

But, perverse though it may seem, this is the very best time to think about it. The U.S. economy is a house of cards, built on quicksand, with a tsunami on the way. I urge everyone to read up on the topic. For now, I'll only briefly touch on the nature of depressions. There are at least three good definitions of the term:

Oct 15 06:34

US and France on the Brink of Trade War

The geopolitics of the cyber world is again influencing the global political and economic order. Now, a new international tension arises around a digital tax, known as the ‘Google tax’. Such tension could trigger a trade war, this time between the United States and France, which would reduce world GDP, warned the Organization for Economic Cooperation and Development (OECD), after confirming that there will be no agreement between both countries in 2020.

Oct 15 05:58

Fed Vice Chair Makes "Shocking" Admission: Fed May Never Be Able To Stop Manipulating The Market

Yesterday, San Fran Fed president Mary Daly made a stunning admission: just in case there was any confusion, the Fed knows that it has - and continues to blow - an asset bubble making "a few" who own stocks uber-rich, but the economy is now so reliant on the Fed liquidity firehose that the moment the Fed threatened to pop this bubble, which some have estimated to be around $90 trillion in liquidity, would result in economic devastation and leave millions without a job.

"I am not willing to trade millions of jobs for people who need a ladder rung up in order to keep the stock market from going up for a few who have those holdings," Daly said while answering questions following a speech on - what else - racial inequality at a virtual event Tuesday hosted by the University of California, Irvine.

Oct 15 05:00

Is this the end of yield?

Oct 15 02:52

Up to 28 Kentucky hospitals at risk of closure

"...Four rural hospitals in Kentucky have shut down since 2009 and up to 28 others are vulnerable to closure, according to a report from the Kentucky Hospital Association.

The 68 rural hospitals in Kentucky employ more than 24,000 people and rely heavily on government payers. The state has the sixth highest percentage of hospital patients covered by Medicare or Medicaid, according to the report.

Many rural hospitals in Kentucky were facing significant financial strain before the COVID-19 pandemic, and between 16 and 28 rural hospitals in the state are at risk of closure if their financial situation does not improve, according to studies cited by the Kentucky Hospital Association..."

Oct 14 07:16

Wall Street is Cooking Up Another “2008-Style Housing Crash” and They Plan on Using Joe Biden’s Presidency to Launch It

In 2008, disastrous policies by America’s political and financial elite caused the worst financial calamity since the Great Depression. Ever since that crash, the American middle and working classes have been in decline. But the plutocrat class came out of the disaster richer and more powerful than ever. So it’s hardly surprising that right now, they’re laying the groundwork for another housing bubble, and another disastrous crash. And Joe Biden’s presidential campaign is egging it on.

On Thursday, banking giant JPMorgan Chase announced a $30 billion plan to “advance racial equity”:

The New York bank said it is committing $30 billion over the next five years toward programs that include earmarking more money for getting Black and Latino families into homeownership and providing additional financing to build affordable rental housing units.

Oct 14 06:24

Employment’s Recovery Road Comes to an End

Oct 14 05:43

Unrealistic Stock Market Expectations

Oct 14 05:36

European Oil Companies Will Not Tolerate Poland's Attempt To Cancel Nord Stream 2

By handing out a €6.5 billion fine against Gazprom, Warsaw has obviously and massively miscalculated because it did not only antagonize the Russian energy company as was intended, but also European partners of the Nord Stream 2 pipeline project, which the Polish government obviously had not considered.

Even leaders within the European Union were shocked at the huge fine that Poland is attempting to impose against Nord Stream 2.

Oct 14 05:25

Coronavirus & Sanctions Have Plunged Iran's Currency To Lowest Level In History

On Monday Iran announced it suffered its highest single-day death toll from the coronavirus since the pandemic began, with 272 confirmed dead, up from the 251 deceased from the disease the day before. The grim report also came alongside news that two senior government officials were infected - the head of Iran's atomic energy organization as well as the country's vice president.

Out of a total population of just over 80 million, Iran has tallied more than 508,000 confirmed cases and 29,070 total deaths as of Tuesday, however, the true number of cases has long been believed to be much higher, even in the millions according to prior estimates of President Rouhani.

Headlines of the record day for virus deaths plunged Iran's currency to its lowest level ever. This also as there's been a steady rise in daily cases, including 3822 new cases from the 24 hours of Saturday into Sunday, according to the AP.

Oct 14 05:23

Rickards: We Destroyed The World's Greatest Economy For No Reason

Everyone knew the second quarter of 2020 was going to be a disaster, and it was. The U.S. economy fell by 31.4% (annualized) in the second quarter.

But, the expectation was that we’d have a V-shaped recovery with a sharp bounce-back in the third quarter, a reopening of closed businesses, rehiring of the unemployed and a rising stock market.

But so far, the economy is not following the script laid out for it by the politicians and experts.

Oct 14 05:21

A Bailout For Hollywood Stars Next? World's Largest Movie Chain Prepares For Bankrutpcy

In what may end up as the most poetic outcome of the covid crisis, one which has seen Hollywood's starved-for-attention C-listers take their clothes off in hopes of attracting attention making a political stand for either wearing masks or supporting the one presidential candidate who has all but assured more nationwide lockdowns are coming (because scientists)...

... Hollywood's movie stars may be next in line for a taxpayer bailout.

What could precipitate such an outcome? Well, if the primary source of revenue for Hollywood - namely billions in annual box office revenue - is indefinitely shuttered, then movie studios and producers would have no choice but to apply a very major haircut to those $20 million checks they hand out to the star du jour.

Oct 14 05:20

Love It Or Leave?

Countries that are in the decline stages tend to lose their best and brightest.

What happens is that, as a country becomes more socialistic, it attracts thousands of new residents who are seeking free stuff.

They wish to cash in – to live off the state.

But someone has to pay for that free stuff. And of course, that means that the more productive people in the country are handed the tab.

Oct 14 05:10

Donald Trump: Joe Biden’s Son-in-Law ‘Cashing in’ on Coronavirus Pandemic

President Donald Trump criticized former Vice President Joe Biden for allowing his investor son-in-law to advise him on the coronavirus.

“Just this week, we learned that another member of the Biden family is getting rich off connections to Joe,” Donald Trump said at a rally in Pennsylvania on Tuesday.

The president referred to a Politico story revealing that Biden’s son-in-law Howard Krein, an investor married to Ashley Biden, is advising the former vice president on the virus.

At the same time, Krein’s venture capital company, StartUp Health, is currently investing in healthcare startup companies specifically dealing with the coronavirus.

“His son-in-law — just came out, big story — is cashing in on the China virus pandemic,” Trump said.

Oct 14 02:42

Are We In The Stagnation Phase?

Oct 13 08:01

A September to Remember

Oct 13 07:22

What Is Slowing The Oil Market Recovery?

Oct 13 06:41

Who funds the riotous American left & why? The globalist billionaire class, which uses it to build corporate socialism

Why do giant corporations and billionaires fund Black Lives Matter and Antifa, both avowed socialist groups? And why do the leftists accept their aid? They both want a kind of socialism, but only one of them could get their way.

If you’re at all familiar with the corporate and billionaire funding sources behind Black Lives Matter and Antifa and the socialist commitments of these groups and their leaders, you’ve probably wondered why the ‘capitalist class’ would support a movement whose doctrine is apparently antithetical to their own interests. Aren’t these funders capitalists after all, and don’t capitalists naturally oppose socialism?

And why do American leftists dance like marionettes attached to strings pulled by globalist billionaires? Don’t they understand that they’re actually serving the masters they claim to oppose?

Oct 13 06:39

US killing dollar with addiction to ‘ever-increasing doses of monetary heroin’ – Peter Schiff

Stock markets tanked as US President Donald Trump abandoned stimulus talks until after the election. Trump is now in the process of out-Democrating the Democrats on the stimulus issue, economist Peter Schiff says.

The Republicans lost the argument the moment they conceded that stimulus is “good” for the economy, Schiff believes.

“The Fed has already said they’re not printing more money until the government sells more bonds. In other words, the Fed is on hold with additional monetary stimulus until Congress comes through with additional fiscal stimulus so that the Fed has more bonds to monetize.”

He explained that after the markets tanked, Trump threw out an olive branch to House Speaker Nancy Pelosi, saying he was still willing to consider a smaller stimulus, including another round of $1,200 checks, $25 billion in airline relief, and paycheck protection program funds. That kickstarted negotiations again and the Republicans quickly began to bid themselves up.

Oct 13 06:28

Escape From San Francisco: Sales Tax Revenue Plunge "Worst In The State" Amid COVID Exodus

We've observed many times throughout the pandemic that the coronavirus-related lockdowns, especially as impacting restaurants, bars, theaters and other night venues, have made living in already expensive big cities like New York much less attractive.

It appears this trend of people 'escaping' the big cities as the prime lure of being there has largely evaporated — also after a summer of chaotic race and police shooting related protests and mayhem — is poised to hit San Francisco, despite it previously witnessing steady population growth over the past three decades. New tax numbers freshly out suggest a major exodus is already in progress.

But for the first time in recent history, and as the city's large tech employers like Google, Facebook and Uber have kept their employees at home working remotely, city data shows that "Sales tax data shows San Francisco’s population likely declined during the coronavirus pandemic," according the city’s chief economist Ted Egan.

Oct 13 05:46

Billionaires' wealth rises to $10.2 trillion amid Covid crisis

The world’s billionaires “did extremely well” during the coronavirus pandemic, growing their already-huge fortunes to a record high of $10.2tn (£7.8tn).

A report by Swiss bank UBS found that billionaires increased their wealth by more than a quarter (27.5%) at the height of the crisis from April to July, just as millions of people around the world lost their jobs or were struggling to get by on government schemes.

The report found that billionaires had mostly benefited from betting on the recovery of global stock markets when they were at their nadir during the global lockdowns in March and April. UBS said billionaires’ wealth had hit “a new high, surpassing the previous peak of $8.9tn reached at the end of 2017”. The number of billionaires has also hit a new high of 2,189, up from 2,158 in 2017.

Oct 13 05:40

California could become the exodus capital of the U.S. — a true s**thole

The State of California may soon be known as the exodus capital of the United States and as one of the biggest s**tholes in America after the once great state was trampled by Democratic leadership failure.

I mean let’s face it, California has been in decline for some time and things are only getting worse.

“California may be the most populous state in the Union, but it could transform into the exodus capital of America. The Golden State has witnessed its population stall, declining slightly from 39.96 million to 39.78 million in the second half of 2019, according to the Department of Finance,” Economic correspondent Andrew Moran writes for the online publication Liberty Nation. “Growth has slowed close to zero or even declined in most coastal counties.”

Oct 13 05:35

How to kill a thriving metropolis in 7 months: NYC’s Covid-19 failure is a vicious spiral directed by a sadistic political regime

Seven months into the pandemic, as many US states inch back toward ‘normal’, New York is in the grips of a crime wave, reinvigorated lockdowns, and widespread fear of pretty much everything. Thank local government.

New York City has lost billions of dollars in tax revenues on tourism, music, art, theatre, restaurant dining, and everything else that once fueled its mammoth economy over the seven-month Covid-19 pandemic shutdown. It’s in worse shape than most US states, and unlike many others, its continued misfortunes are largely of its own making.

The shuttering of the city’s iconic Broadway theaters alone has sent hundreds of thousands out of work and signaled to both wealthy city inhabitants and out-of-town visitors that their cash is better spent elsewhere. Theaters announced just weeks ago that performances would be cancelled through March 2021, and the Metropolitan Opera House canceled its entire season through 2021.

Oct 12 11:15

Ritzy NYC Shops Who Signed On To BLM Getting Looted By Folks Who Threaten to Scream 'Racism'

Luxury shops in Soho which threw their support behind the Black Lives Matter movement when it was trendy earlier this year are reportedly now getting looted for hundreds of thousands of dollars in merchandise by folks who threaten to accuse them of "racism" if they try and stop them.

Oct 12 07:52

European oil companies will not tolerate Poland’s attempt to cancel Nord Stream 2

By handing out a €6.5 billion fine against Gazprom, Warsaw has obviously and massively miscalculated because it did not only antagonize the Russian energy company as was intended, but also European partners of the Nord Stream 2 pipeline project, which the Polish government obviously had not considered. Even leaders within the European Union were shocked at the huge fine that Poland is attempting to impose against Nord Stream 2.

Oct 12 07:41

The Bradbury Pound and a road economic recovery: Why don’t MPs want to talk about it? A letter to Commons Speaker Lindsay Hoyle

This simple fiscal arrangement, called M0 at 100% by HM Treasury or Sovereign National Credit by money reformers, completely saved the day and prevented a catastrophic run on the banks. The new notes were nicknamed ‘Bradbury Pounds’ after Sir John Bradbury, the First Secretary to the Treasury, who had his signature on the notes.

However, as this common-sense, debt-free process of money creation became extremely popular with the general public (Punch even composed a ditty to praise it), a dark cloud suddenly developed over the City of London. The bankers realised very quickly that if the Treasury continued with the ‘Bradbury’ as the sole way to fund the war, then they would not be able to make any sort of a financial killing out of the killing on the Western Front.

Oct 12 06:42

The Great California Exodus Accelerates

German author Franz Kafka wrote in The Metamorphosis, “There is an infinite amount of hope in the universe … but not for us.” The legendary writer might as well have been writing about the state of California, a progressive wasteland that is the personification of everything wrong with leftist orthodoxy. In the mid-19th century, when it became a state, tens of thousands of people headed west. Today, those with a modicum of judgment and respect for their pocketbook are heading anywhere that is not named California, attempting to flee the incompetent mismanagement of Governor Gavin Newsom and his Democratic friends in Sacramento on every subject, from the economy to civil liberties.

Oct 12 06:32

VIX Creator Points Out Little Known Options Glitch That Causes "Windfall Transfers Of Wealth"

There appears to be a serious glitch in the market for options of exchange traded products. Unlike when an underlying stock splits and options adjust accordingly, when an ETP changes its strategy or rebalances - like the U.S. Oil Fund (USO) product did months ago, buying longer dated oil futures - options on that product do not adjust accordingly.

In fact, USO underwent several changes to try and save itself and respond to regulatory concerns when oil crashed. The fund survived, but those who bet on its demise were unfairly hurt on the trade. USO said it was just acting in accordance with its prospectus, which authorized the potential moves.

This type of impasse for options has cost holders "hundreds of millions of dollars", according Robert Whaley, the man who created the VIX index. He has been sounding the alarm on the "glitch" recently, as covered by Bloomberg.

Oct 12 06:31

Turkey And Hungary's Harbinger Hikes

Given the scale of demand destruction in the wake of the global health pandemic, central banks should be nowhere near tightening monetary policy. For those that are, policy rate hikes are indicative of intensifying currency stresses and risks of a destabilizing inflation surge.

Oct 12 05:43

Young Americans Moving Back Home Because of Covid-19: Nearly 40 Percent of Younger Millennials Say the Pandemic has them Moving Home Again.

The pandemic has made it harder for younger families to purchase homes in a few ways. Inventory has been severely depressed for a few years and that continues to be the case today. The pandemic has also disproportionately hit younger Americans hard while homeowners are doing well thanks to record low interest rates, tight inventory, and a sudden shift to home being the place for all things. All of this has combined to create a strong market in terms of price but Millennials are being pushed to live at home with older parents for economic reasons. Nearly 40 percent of younger Millennials said in a recent survey that the pandemic has them moving home again. What does this mean for these new households with older parents and adult kids who would like to own but simply cannot afford to do so?

Millennials are still being left out of the housing market

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