ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Aug 09 07:22

The Federal Reserve’s Merry-Go-Round

Aug 08 18:40

Big Banks, Big Troubles: HSBC, Deutsche, Societe, and Citi Lay Off Thousands Worldwide

By Lubomir Tassev

Banking giants are in trouble and it’s starting to show. Key players in the industry have already announced massive job cuts and executives with hefty salaries have been dismissed. HSBC, the largest bank in Europe, has revealed it plans to lay off over 4,000 employees and Citigroup is preparing to shrink its trading staff slashing hundreds of jobs. They are joining other global brands in a wave of layoffs hitting the unstable banking sector...

Aug 08 13:24

There’s a Growing Number of College Graduates Owing Nearly Half a Million Dollars

By Chloe Anagnos

The student loan crisis has recently played an important role in the Democratic presidential debates, with Democratic candidates pushing for solutions that look a lot like the policies that put us here in the first place. But as they pursue an agenda that would essentially reward people for owing money, reports surfaced showing that many are taking out nearly half a million dollars in student loans. What’s worse, many expect the government will do something to help them...

Aug 08 13:13

Amazon’s Ring Is a Perfect Storm of Privacy Threats

By Matthew Guariglia

Doors across the United States are now fitted with Amazon’s Ring, a combination doorbell-security camera that records and transmits video straight to users’ phones, to Amazon’s cloud—and often to the local police department. By sending photos and alerts every time the camera detects motion or someone rings the doorbell, the app can create an illusion of a household under siege. It turns what seems like a perfectly safe neighborhood into a source of anxiety and fear. This raises the question: do you really need Ring, or have Amazon and the police misled you into thinking that you do?..

Aug 08 12:33

Prepping Has Gone Mainstream: Politics, a “Culture of Fear,” or a Return to What’s Been Lost?

By Nicholas West

When the reality show Doomsday Preppers aired its Pilot episode in 2011, the critical reviews were mixed at best. But as soon as the ratings started coming in, it became evident that the show had tapped into concerns harbored by a wide swathe of the public, or at least a deep curiosity about what drives certain people to prepare for the worst.

Over the ensuing 4 seasons, “Doomsday Prepper” became a household term. Whether the show had been viewed or not, the phrase was used as much in confirmation of a certain lifestyle, as it was a pejorative toward those gun-toting “worry warts” who overprepared based on end-times proclamations that never seemed to get the timing of their predictions correct...

Aug 08 12:33

Gillette Bleeds Billions Following "Toxic Masculinity" Ad Campaign

Gillette’s now infamous ad campaign shaming American men for their supposed “toxic masculinity” has come back to haunt the shaving-products company. Months after using an ill-advised television ad to stereotype the American male as an insensitive cad blind to sexual harassment, bullying, and his own dull-witted machismo, Gillette’s parent company, Procter & Gamble, recorded an astounding $8 billion “writedown” on the company.

Aug 08 11:23

China has a $1 trillion trade war weapon. Will it ever use it?

China has said it is prepared to fight, if necessary. And it has one hugely powerful weapon up its sleeve: it's the American government's biggest creditor.

In theory, Beijing could trigger a panic in bond markets by dumping some of the $1.1 trillion in US Treasuries that it owns.

Aug 08 11:22

Walgreens to close 200 US stores

Walgreens plans to shutter 200 stores in the U.S. as the company pares back its locations in the U.K., the company said Tuesday.

Parent company Walgreens Boots Alliance earlier this year announced plans to shutter 200 stores in the U.K. and review its U.S. footprint.

Aug 08 11:22

"Worst Year Ever": China's Ban On US Ag Products Will Be A Death Blow For Countless Farms

U.S. farmers have never experienced a year quite like this. During the first half of 2019, endless rain and unprecedented flooding were the major problems. As a result of the incredibly wet conditions, millions of acres of prime farmland didn’t get planted at all, and tens of millions of other acres are going to yield a lot less than usual. Even without anything else happening, we were going to see farm bankruptcies soar to absolutely crazy levels, but now the Chinese government is essentially cutting off U.S. agricultural imports.

Aug 08 11:19

White House To Unveil Rule Banning Agencies From Doing Business With Huawei

As has long been expected, the White House is preparing to release a new rule on Wednesday barring government agencies from buying equipment or doing any kind of business with Chinese telecoms giant Huawei - ratcheting up tensions between the world's two largest economies at an already precarious time for the global economy.

Aug 08 10:58

PAKISTAN TO DOWNGRADE DIPLOMATIC RELATIONS, SUSPEND BILATERAL TRADE WITH INDIA

SOURCE: RT
Pakistan says it’s going to downgrade diplomatic relations with India and suspend trade with the neighbor state. The move comes after New Delhi revoked the autonomous status of the disputed Kashmir region.
The statement by the Pakistani government vowed that the country will take the Kashmir issue to the United Nations Security Council (UNSC).

It also said that Prime Minister, Imran Khan, told the Pakistani military to “continue vigilance.”

On Tuesday, India’s lower house of parliament has voted to downgrades the status of Kashmir from a state to a union territory, which will prevent the Muslim-majority region from making its own legislation.

Islamabad also announced that India's envoy to Pakistan, Ajay Bisaria, will be expelled from the country as part of the response measures.

Webmaster's Commentary: 

As I input this, there are already reports of fiercely heavy fighting, in some areas, along the Line of Control; this situation could go from bad to worse, in less than a heartbeat, for the following reasons:

2015: India and US seal nuclear deal as Modi hosts Obama

From March of this year: China backs ‘iron brother’ Pakistan with primary weapons and complex exercises

And from May of this year: Russia's looming arms sale to Pakistan sets up a dangerous game

Unfortunately, it will not take much for a real shooting conflict to take shape between a nuclear-armed Pakistan, and a nuclear-armed India over Kashmir.

And unfortunately, India has been deaf, dumb, and blind, to an early promise by its leadership, to allow the Kashmiris to determine if they want to stay with India, join Pakistan, or become an entity unto itself.

In 2016, the following op ed appeared in the Express Tribune Blog section: When Nehru Promised Kashmir Freedom, why is India still in denial?!?

So now, what we have in this already volatile area, are US "defense assurances" to India, based on Obama's 2015 trip here, countered by Russian and Chinese defense assurances, (and practical actions by the Chinese government and military) to Pakistan.

War with Pakistan, China, and Russia, with the US supporting India against them?!?

Please, Lord, NO!!

Because unless someone sane in the Bowels of Power in governments around the world is "working the phones", and is creating as direct a communication with both countries' leadership as is humanly possibly, and right the hell now, a shooting war, courtesy of the US and India, and also courtesy of Pakistan, Russia, and China, could well be on its way to this already troubled part of the planet.

Russian President Vlad (the NON-Impaler) Putin, and Sergei Lavrov, white courtesy telephone, please!! And yes we know that you, and your weapons developers love selling Russian military gear around the world (as does the US military industrial complex, and its President, love to sell their military hardware).

And President Trump, we know that you met with Pakistani Prime Minister Imran Khan last week; please, let us get both parties on this to "Contain the Rage and Engage", at a meaningful level, so that a true, shooting war does not break out here; it is the absolutely last thing this world needs right now.

President Trump, we both know, that in the Chinese language, the ideogram for "Crisis" and "Opportunity", are one in the same; please see if we can turn this into an opportunity for peaceful engagement, and a furthering of ties recommences between India and Pakistan.

But you will need to convince the Indian Prime Minister, Narendra Modi, that promises, once made by its government, need to be fulfilled, and not repudiated.

If there was ever a critical time for a Kashmiri referendum, is right now, Mr. President: and you're welcome.

Aug 08 10:51

“On a Scale of 1-10, It’s an 11” – Wall Street Reacts to China’s Retaliation

One day after China finally snapped, and demonstratively refused to intervene and keep the CNH above 7.00 vs the dollar, escalating the trade war into a currency war, stocks are tumbling and Wall Street analysts – all of whom had been bullish until now – are scrambling to adjust their narrative.

With the S&P dropping more than 2%, bringing its slide from the all time highs just two weeks ago to more than 5%, semiconductors which are most directly exposed to Chinese trade, and banks stocks, which are sensitive to interest rates, are among the hardest hit sectors.

Aug 08 10:18

More Sanctions Against Venezuela Means More Suffering

Aug 08 10:04

Yes, We are Pricing an Emergency Cut

Aug 08 09:34

When You Get An Email Like This From The Fed, It May Be Time To Panic

As we explained in detail, the main reason why the Fed should be concerned, is that according to a research report from BofA's Marc Cabana which we used extensively in the report, the Fed may be forced to launch Quantitative Easing as soon as Q4 to provide the market with the much needed liquidity, or else suffer the consequences of a major liquidity shortage. To wit, in describing the various steps the Fed can engage in, this is what the BofA strategist said:

Outright QE: after OMO dealer capacity is exhausted the Fed may need to start permanently expanding its balance sheet. The Fed would likely describe this as offsetting "bank reserve demand and growth in other non-reserve liabilities". Regardless, it would represent the Fed permanently buying USTs outright to maintain control of funding markets well above the ZLB.

Aug 08 09:18

Home Prices Decline in July

Aug 08 09:15

"The End Of The World As We Know It" - China Going Nuclear Means There's No Turning Back Now

At the end of last week, President Trump announced that the U.S. would be imposing a 10 percent tariff on 300 billion dollars worth of Chinese imports, and that marked a dramatic escalation in our trade war with China. This move by Trump came as a total shock to Chinese officials, and global financial markets were thrown into a state of turmoil. Since that announcement, we have been waiting for the other shoe to drop, because we knew that the Chinese would retaliate. But honestly, very few of the experts expected something like this. On Monday, China announced that it is going to completely stop buying U.S. agricultural products…

China confirmed reports that it was pulling out of U.S. agriculture as a weapon in the ongoing trade war.

A spokesperson for the Chinese Ministry of Commerce said Chinese companies have stopped purchasing U.S. agricultural products in response to President Trump’s new 10% tariffs on $300 billion of Chinese goods.

Aug 08 08:55

Bonds Are The New FANG!

Aug 08 08:47

Is the Federal Reserve Losing Control of the Gold Price?

After years of being kept in the doldrums by orchestrated short selling described on this website by Roberts and Kranzler, gold has lately moved up sharply reaching $1,510 this morning. The gold price has continued to rise despite the continuing practice of dumping large volumes of naked contracts in the futures market. The gold price is driven down but quickly recovers and moves on up. I haven’t an explanation at this time for the new force that is more powerful than the short-selling that has been used to control the price of gold.

Various central banks have been converting their dollar reserves into gold, which reduces the demand for dollars and increases the demand for gold. Existing stocks of gold available to fill orders are being drawn down, and new mining output is not keeping pace with the rise in demand. Perhaps this is the explanation for the rise in the price of gold.

Aug 08 08:46

Weekly Update --- Congress Spending Surge is National Suicide

Aug 08 08:35

Failed city of Seattle: Police response to business owner whose customer was assaulted by homeless criminal, “you’re pretty far down the line, pal”

As I’ve mentioned many, many times here on this blog: The demorat-run city of Seattle has a major homeless crisis in which the bureaucrats do nothing to solve. They allow the homeless to commit crimes, camp and urinate and defecate on the streets, and do drugs in the open. See the following:

Aug 07 13:06

China’s exit from US agriculture is a devastating blow to an already struggling sector

Agriculture has been a weapon of choice in the escalating trade war between the world’s two largest economies.

With China officially pulling out of buying U.S. agricultural products, American farmers are losing one of their biggest customers. It could be a devastating blow in an already tough year for crops and commodity prices. It may also dent U.S. gross domestic product and hurt companies like Deere, whose business is directly tied to farming in the Heartland.

Aug 07 11:57

The LOW-Down On Market Breadth

Aug 07 11:45

Baltic Exchange Dry Index

Aug 07 11:08

And That’s How it All Came Down

Aug 07 10:46

Visualizing America’s Student Debt by State

Aug 07 10:43

Scott Adams: The Mental Illness Crisis Turning Democrats into FAKE NEWS ZOMBIES

Comments at: https://twitter.com/ScottAdamsSays/status/1159101969501282304?s=20

Democrats are implementing a trade war against America
Financially penalizing Americans for their political beliefs
Isn’t that a trade war…Joaquin Castro?
MSNBC’s Nicolle Wallace…“misspoke?
”What’s wrong with Nicolle Wallace?
Reza Aslan wants someone “eradicated”?
CNN FAKE NEWS Chyron: “Trump Inspired Terrorism”
Immigration debate curiosity…
NO Democrat has said HOW MUCH immigration is okay
NO Democrat has even been ASKED the question
Extra people = extra crime
How much additional CRIME is acceptable to you?
If you can’t put a number on it, you aren’t sincere
What impact will your policy have on the country…in 10 years?
Has Presidential candidate Andrew Yang told a direct lie yet?
Is he the ONLY Democrat candidate who has NOT directly lied?

Aug 07 10:08

2020 Candidates Offer New Government Ponzi Schemes

By Gary Galles

Seeing the Democrat debates has reminded Americans just how much of campaigning is promising something-for-next-to-nothing in attempts to buy electoral support. But when you think about historic Democrat bragging points, like Social Security and Medicare, that is not surprising. They have long been “something for you today partly at someone else’s expense tomorrow” programs. In other words, they have been partial Ponzi schemes from the beginning.

However, the political history on both sides of the political aisle is not very encouraging when it comes to preventing the pillage of future generations...

Aug 07 10:07

At this rate, the rich could truly have it all just 33 years from now

Mark your calendars. The rich will truly "have it all" just 33 years from now.

Yup, that's when the top 10% of all households could have 100% of all the net worth in America.

Aug 07 09:56

From Booze to Bitcoin Mining – Why Violent Prohibition Is Always Harmful

By Graham Smith

Introduce some violent legislature into the mix, and even simple activities end up culminating in potential violation, kidnapping, and caging...

Aug 07 09:07

Dow drops more than 200 points as August swoon resumes on Wall Street

Stocks fell on Wednesday, adding to the month’s steep losses, as a drop in global bond yields raised concerns about a slowing global economy.

The Dow Jones Industrial Average dropped 242 points, or 0.96%. The S&P 500 lost 0.5% while the Nasdaq Composite traded 0.1% lower. The major indexes were all down more than 1% earlier in the day. Wednesday’s losses brought both the Dow and S&P 500 down more than 3.8% for the month. The Nasdaq was down 4.3% for August.

Webmaster's Commentary: 

The DOW is down 367 as I type this.

Aug 07 00:52

NZ Finance Minister Grant Robertson says the 0.5 per cent cut to the OCR is good news for Kiwis

The Reserve Bank's "stunning" cut to the official cash rate means it's a very good time to invest in New Zealand, according to Finance Minister Grant Robertson.

This morning, the Reserve Bank cut the official cash rate (OCR) by 50 basis points to 1 per cent – a historic low.

This is just the fourth time in New Zealand's history the OCR has been cut by 50 basis points.

The first was after the 9/11 terrorist attack, then during the global financial crisis, and again after the Christchurch earthquake.

Westpac called the decision "stunning" and said it was very surprised that the Reserve Bank would cut the OCR so significantly "in today's environment".

*It's good to know our Finance Minister thinks devaluing our dollar is good for us. I'm so happy...*

Aug 06 20:27

NZ Reserve Bank cuts OCR to 1 per cent, ASB lowers mortgage rates

In a surprise move, the Reserve Bank has cut its official cash rate by half a percentage point to 1.0 per cent.

Market expectations were for a 25 basis point cut.

Mortgage interest rates are already at record lows and look set to push lower still.

ASB bank is the first bank to cut its home loan rates in the wake of the Official Cash Rate cut.

It will shave four basis points off its two year fixed home loan cutting it to 3.75 per cent while cutting 50 basis points off its variable home loan and 45 basis points off its Orbit home loan dropping them to 5.2 per cent and 5.3 per cent respectively.

*It's a race to the bottom & it looks like we might win against Aust! Com'n US, join us! We may as well tank together!*

Aug 06 18:59

“Free Everything” and the First Law of Politics

By Dan Sanchez

Health care and education are not “free” in that sense. Pills and pencils, surgeries and lectures are scarce. The same pill can’t be swallowed by two people. And the material and labor that go into producing those things are also scarce. Resources cannot be endlessly lavished on one area without making other uses of those resources impossible. To think otherwise would indeed be “fairytale economics.”

When scarcity is a factor, “how can we afford this?” is a key question, and “we can’t” is a possible answer...

Aug 06 17:08

The Case for a Coercive Green New Deal?

By Richard M. Ebeling

Social and economic crises, real and imagined, often seem to bring out the most wrongheaded thinking in matters of government policy. Following the 2008 financial crisis and with the fear of “global warming,” there has been a revival in the case for “democratic” socialism. But now its proponents are “out of the closet” with a clear cut and explicit call for forcefully imposed, authoritarian central planning of the world...

Aug 06 15:12

Nothing Is Guaranteed

Aug 06 12:29

Retail Apocalypse Claims Latest Victim: Barney's Files For Bankruptcy; Blames Rising Rents, Fewer Customers

Ultra luxury department store chain Barney’s probably did not use a plush, Louis Vuitton letter pouch in which to submit its Chapter 11 filing at Bowling Green yesterday, but the result is the same: the iconic Madison Avenue store officially filed for bankruptcy protection and laid out its plans to shut down most of its stores, according to Bloomberg. The company cited rising rents and fewer visitors to its stores as the reasons for its restructuring.

Aug 06 12:28

US-China Direct Investments Plunge To Five-Year Low Amid Intensifying Trade War 

American and Chinese investors' willingness to deploy capital into each other's countries has plummeted to a five-year low amid escalating trade tensions between the two countries, according to a new study by research firm Rhodium Group.

Two-way foreign direct investment (FDI) between the US and China fell 18% YoY to $13 billion in 1H19 and approached levels not seen since 1H14.

Aug 06 10:59

China approves wheat, soy imports from Russia

China has approved wheat imports from the Russian region of Kurgan, the Chinese customs office said on Friday, bringing Russia a step closer to its goal of dramatically increasing grain exports.

It also approved soybean imports from all parts of Russia, the General Administration of Customs said in a separate statement on its website, having all but halted U.S. soy imports as the trade dispute between Beijing and Washington deepened.

China was the top buyer of U.S. soybeans until Beijing slapped a 25% tariff on shipments last year in response to U.S. tariffs on a range of Chinese products.

Aug 06 10:40

Trump Launches Long-Term Strategy Against The Federal Reserve

The Federal Reserve’s modest rate cut last week disappointed President Donald Trump.

He wanted more and he was quick to criticize Powell and Company. The very next day, the president trumped the Fed by slapping down the tariff card.

Aug 06 10:25

Indian Rupee Plunges Most In Six Years Amid Trade War And Kashmir Chaos 

The Indian rupee (INR) plunged the most in six years amid turmoil in both global equity and currency markets to start the week.

The rupee fell to 70.74 against the US dollar, could test 71.50 level in the coming weeks.

Aug 06 10:23

TRADE DEFICIT WIDENS & 3 MORE DATA POINTS PROVING THE U.S. IS LOSING THE TRADE WAR

As the trade deficit continues to widen and President Donald Trump ramps up his rhetoric on China, one thing is for certain: the data points show that the United States is the loser in this trade war.

There is no coming out on top when the tariffs, which are paid in whole by American consumers and businesses, are a financial burden and additional tax on your own. According to a report by Reason, investment in American businesses has fallen sharply since the start of the trade war, and American exports are way down too.

Aug 06 10:22

HSBC WILL SLASH THOUSANDS OF JOBS AS ECONOMY WORSENS

Up to 2% of HSBC bank’s 237,685 employees could lose their jobs, a bank executive said Monday, as the bank flagged a worsening outlook for the global economy in its second-quarter results. The economy’s woes are beginning to manifest in real job losses, and it’s not likely to end here.

The retail apocalypse and subsequent job losses have somehow managed to escape scrutiny as people put on blinders to what’s really going on in the economy. As we’ve said before, Main Street and Wall Street are two different things when it comes to how well folks are doing during this economic “expansion.”

Finance director Ewen Stevenson in an interview said the job cuts, which will be targeted at senior roles, would shave up to 4% off HSBC’s wage costs and would come from a mix of layoffs and attrition as people leave for other jobs. HSBC said severance costs this year would be $650 million to $700 million and save it that much annually going forward. –Market Watch

Aug 06 10:21

"We're Already Starting To Ration Our Corn" - Perfect Storm Could Send Spot Prices Higher

Corn is extensively used to feed livestock, but the surge in spot prices has forced US farmers to search elsewhere for low-cost substitutes, reported Reuters.

The persistent wet weather that swamped the Midwest this spring is now reducing corn yields.

Aug 06 09:50

Report Sheds Light On The Rockefeller Family’s Covert “Climate Change” Plan

Op-Ed by Arjun Walia

The climate is changing, and it has been changing for a very long time. In fact, the climate has always been changing, and there are a myriad of factors that influence climate change like solar activity and much more. If you’re not educated on climate science, it’s easy to adopt the “doomsday” perspective that’s often dished out by mainstream media. However, when you look at what actual climate scientists are saying, it doesn’t seem like anyone on either side agrees with the media’s “climate hysteria” narrative...

Aug 06 09:06

Tyson Discloses Justice Department Subpoena in Chicken-Pricing Probe

Tyson Foods Inc. and other major chicken companies said they received subpoenas from the Justice Department, signaling an expansion of a criminal investigation into allegations they colluded to prop up prices.

Aug 06 08:15

Defying U.S. Sanctions,China and Others Take OilFrom 12 Iranian Tankers

China and other countries are receiving oil shipments from a larger number of Iranian tankers than was previously known, defying sanctions imposed by the United States to choke off Tehran’s main source of income, an investigation by The New York Times has found.

Aug 06 08:10

This is it. Macro trade of the century is on.

Aug 06 08:07

Fourth Turning Economics

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