ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Sep 01 06:43

China Divorce From Capitalism Steals Joy From Stocks

Investors want to move past the turmoil caused by China’s crackdowns. But doing so risks overlooking the profound shift as Xi Jinping’s government makes a decisive turn away from free markets, radically altering the dynamics in the coming decade, particularly for equities.

I warned before that China would be a big source of disruptions for investors this year, and that has certainly been the case. There are likely some fund managers left bruised after regulatory storms helped wipe out their investments in particular sectors or companies -- New Oriental Education is now a $3 billion company instead of a $33 billion one, for example.

However, focusing on particular pain points obscures the real dangers because it makes it all too easy for investors to shrug and move on to trying to find winners and losers.

Sep 01 06:42

California Port Pileup Shatters Record And Imports Still Haven’t Peaked

From anchorage stats to forward arrivals, ocean bookings, and inventory-to-sales numbers, all the latest data paints the same picture: The U.S. congestion crisis has never been more severe than it is now — and it’s getting worse.

Hope for any relief this year has vanished. French carrier CMA CGM is the latest in a long line of market participants to push back its timeline on normalization. Capacity constraints “are expected to continue until the first half of 2022,” CMA CGM warned on Friday.

Alarmingly, America’s import system — which is already stretched to the limit — looks like it will have to handle even higher volumes next month. The likely outcome: Carriers will be forced to cancel more sailings as terminal berths max out and ships get stuck at anchor, even more cargo will get “rolled” (pushed to a future sailing), and importers will face even longer delays and even less slot availability as they scramble to build inventories for holiday sales.

Webmaster's Commentary: 

Claire and I are already thinking about our Christmas shopping this year!

Sep 01 06:35

Americans Face A Nightmare Scenario: Record High Home Prices, Record High Rents... And OER Is About To Explode

While the Fed keeps touting the "transitory" nature of runaway inflation, millions of Americans will soon be living under a bridge as both house prices and rents are now rising at a record pace (at least until cities start charging a "bridge habitation" tax).

Earlier today we reported that the latest Case Shiller data showed that home prices across the country had soared at the fastest pace on history, surpassing even the epic surge from the housing bubble, after rising at a record 19.1%.

Needless to say, at the rate home prices are rising, most American will soon be priced out of owning a home - even with record low mortgage rates - if they haven't been already, which means they will be stuck paying rent for years if not decades to come.

Sep 01 06:34

Wells Tumbles On Report Troubled Bank Faces New Regulatory Sanctions

Just when you thought Wells Fargo was finally putting its unpleasant regulatory transgressions behind it once and for all, today Bloomberg reported today that regulators aren't happy with how quickly the bank is paying restitution and cleaning up its act. This, in turn, could lead to even more regulatory action heading the bank's way. The news sent Wells stock tumbling more than 5% on the day.

The bank has already paid more than $5 billion due to its various fraudulent cross-selling scandals which cost the former CEO his job, but the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are warning the company that new sanctions could be on their way due to how slowly the bank is fulfilling consent orders it signed about three years ago, according to a new article by Bloomberg.

Sep 01 05:12

THE GREAT RESET: Davos & the Plot to Cancel Trump

Aug 31 13:45

Looters Target Liquor Store, ATMs in New Orleans After Hurricane Ida

Looters were filmed smashing into ATMs, stealing cases of beer, emptying a Dollar Store and more in the wake of Hurricane Ida wrecking havoc in New Orleans.

Aug 31 12:53

Facebook’s VR Workrooms Experience Includes Heavy and Hot Headsets, Dull Rooms, Floating Avatar Bodies, Other Distractions

By B.N. Frank

Research has proven that using VR headsets can cause behavioral changes, balance issues, cognitive problems, eye problems (soreness, vision changes), headaches, and MORE. In fact, last month, Facebook recalled millions of VR face liners due to users reporting rashes and hives!

Despite all of this, tech companies continue to create, promote and sell VR products for educational, employment, medical, and recreational purposes. Facebook is one of them and its Horizon Workrooms technology is already getting bad reviews...

Aug 31 11:17

Hurricane Ida damages Louisiana grain terminal, disrupts exports

Hurricane Ida damaged a grain export elevator owned by global grain trader Cargill Inc, and rival shipper CHS Inc warned on Monday its grain facility may lack power for weeks after the storm tore though the busiest U.S. grains port.

Cargill said its Reserve, Louisiana, terminal, one of two the company operates along the Mississippi River near the Gulf of Mexico, “sustained significant damage” when the storm roared ashore.

Rival crop exporters Bunge Ltd and Archer-Daniels-Midland Co said they were working to assess damage to their area export facilities.

The storm has disrupted grain and soybean shipments from the Gulf Coast, which accounts for about 60% of U.S. exports, at a time when global supplies are tight and demand is strong from China.

Aug 31 10:43

PayPal Wants to Develop Stock Trading Platform: Report

PayPal is interested in developing a stock trading platform, according to a report from CNBC that cites anonymous sources at the company. The move would make PayPal a direct competitor of Robinhood, a stock trading app that’s helped create a surge in retail investing but is coming under increased scrutiny from the Securities and Exchange Commission.

CNBC reports that PayPal recently hired Rich Hagen, a brokerage industry big-shot, for a new division called Invest at PayPal—a fact confirmed by Hagen’s LinkedIn page. Hagen co-founded TradeKing, an automated investing platform that was sold to Ally Invest for $275 million.

Hagen’s LinkedIn describes his job as, “Leading PayPal’s efforts to explore opportunities in the consumer investment business.” As CNBC points out, at least 10 million Americans have started trading stock for the first time in the first half of this year.

Aug 31 10:34

Apple's crumbling wall of silence

Long-quiet Apple employees are beginning to speak their minds. In recent weeks they've talked publicly about experiences with harassment and discrimination, concerns about business decisions, and objections to policies that some feel open their personal lives to corporate scrutiny.

Why it matters: Employee activism has been on the rise across Silicon Valley, but until recently, Apple workers have largely avoided public criticism of their employer.

Aug 31 08:13

Global Money Supply Peak

Aug 31 06:11

Is this really all there is to the market?

Aug 31 05:43

How transitory is rent?

Aug 31 05:36

Brilliant new book Woke Inc exposes cynical big-business’ tactics, used to shower itself in virtue and to silence woke critics

Using disingenuous, profit-driven stands on race, gender and other woke issues, mega-rich corporations are unelected moral guardians of society, flogging virtue to consumers who buy their products to feel good about themselves.

Back in 2019, razor manufacturer Gillette launched a grievously ill-considered advertising campaign addressing toxic masculinity, just as the #Metoo movement was gaining speed, using images portraying sexism, bullying and aggressive male behaviour.

The idea was to twist the company’s slogan from “The best a man can get” to the “The best a man can be.” It sucked big time and hilariously backfired, causing huge reputational damage to the business, as customers turned their backs on this impossibly woke nonsense.

Having bought Gillette products for years, I have never bought them since and never will again.

Aug 31 05:18

Military Contractor CACI Says Afghanistan Withdrawal Is Hurting Its Profits. It’s Funding a Pro-War Think Tank.

On August 12, the military contractor CACI International Inc. told its investors that the U.S. withdrawal from Afghanistan is hurting its profits. The same contractor is also funding a think tank that is concurrently arguing against the withdrawal. This case is worth examining both because it is routine, and because it highlights the venality of our ?“expert”-military contractor feedback loop, in which private companies use think tanks to rally support for wars they’ll profit from.

The contractor is notorious to those who have followed the scandal of U.S.-led torture in Iraq. CACI International was sued by three Iraqis formerly detained in Abu Ghraib prison who charge that the company’s employees are responsible for directing their torture, including sexual assault and electric shocks. (The suit was brought in 2008 and the case is still ongoing.)

Aug 31 05:01

Crypto with James

Aug 31 04:57

Biden's gambling on another death tax to fund his budget goals

Our nation's job creators have endured an economic calamity unlike anything we have ever seen in modern times — the crushing blow of COVID. In response, President Joe Biden promised to “Build Back Better” America’s economic growth and prosperity opportunities. But his proposed American Families Plan threatens the very foundations of those opportunities — a foundation long supported by small businesses across America.

Republican and Democratic presidents before Biden offered plans to sustain America's greatness; however, these goals often become lost in the bureaucracy of Washington's partisan fights. The real tension is about who sacrifices and pays for the cost of prosperity.

Webmaster's Commentary: 

Aug 30 19:38

New York Wages War on COVID Unvaxxed

By Neenah Payne

The Statue of Liberty has long welcomed into the New York harbor people escaping tyranny from around the world and has symbolized not only New York, but America as the “Land of the Free”.

However, she is now witnessing a growing loss of liberty and a growing exodus from the Empire State amid various forms of pushback against mandates and other restrictions...

Aug 30 18:16

Signed as Law: Ohio Takes Step Toward Treating Gold and Silver as Money

By Michael Maharrey

COLUMBUS, Ohio (Aug. 30, 2021) – Ohio Gov. Mike DeWine has signed a bill into law exempting gold and silver bullion and coins from sales tax. The new law will relieve some of the tax burdens on investors, and it will also eliminate one barrier to using gold and silver in everyday transactions, a foundational step for people to undermine the Federal Reserve’s monopoly on money.

House Bill 110 (HB110) – the 2022-2023 budget appropriations bill – was introduced back in February. Provisions in the omnibus bill repeal the sales tax on gold, silver, platinum, and palladium bullion and coins.

DeWine signed the appropriations bill on June 30. The provisions relating to sales tax on precious metals go into effect. Oct. 1...

Aug 30 13:18

The Fed Keeps Printing "Or The Whole Things Blows Up"

Financial writer, market analyst and precious metals expert Craig Hemke says the Fed has all but said it was going to delay the so-called “taper” of easy money policies–forever. This is why gold and silver spiked as the dollar tanked on Friday.

Hemke contends, “The Chinese, four months in a row, have been net sellers of Treasuries...They’re not buying them. Well, somebody has got to buy..."

" Congress just announced this week that they came to a deal where they are going to spend $4.1 trillion on what is allegedly called infrastructure. . . . The money has got to come from somewhere. There is this notion that they are just going to raise taxes on rich people. Rich people are just going to change how they spend and do their taxes. Who is going to loan us money? It’s not going to be the Chinese or other foreign countries because they don’t have confidence in us anymore.

Aug 30 13:01

A program that pays farmers not to farm isn't saving the planet

President Joe Biden wants to combat climate change by paying more farmers not to farm. But he’s already finding it’s hard to make that work.

His Agriculture Department is far behind its goal for enrolling new land in one program that has that goal, with participation being the lowest it's been in more than three decades.President Joe Biden wants to combat climate change by paying more farmers not to farm. But he’s already finding it’s hard to make that work.

His Agriculture Department is far behind its goal for enrolling new land in one program that has that goal, with participation being the lowest it's been in more than three decades.

Aug 30 10:50

“Inflation,” Properly Defined

Aug 30 10:10

Supply Chain Problems May Foil Your Holiday Shopping Plans

Covid-19 has disrupted supply chains for the past year and a half. We’ve seen shortages of our favorite things, from ketchup to coffee—but many people hoped that with vaccinations and the world reopening, those woes were behind us.

The Delta variant has other plans that could upend the holiday shopping season.

Countries at the heart of retail manufacturing, such as Vietnam and Indonesia, are being swept away by surges of the highly transmissible Delta variant of the Covid-19 virus. Popular clothing and shoe brands with factories in these countries, including Nike and Gap, are scrambling to find alternative solutions.

These supply-chain problems are piling on top of other issues that have caused disruption for most of the pandemic. Combined, they’re predicted to cause further headaches for retailers and shoppers alike.

Here’s what shoppers should know—and why you might want to start holiday shopping earlier this year.

Aug 30 09:46

"Old" developers are in demand at this tech company. You'll never believe the job post

After a year of hiring freezes and layoffs, companies have ramped up hiring in recent months and developers are in high demand. An active job post for a software developer has stirred up a conversation surrounding ageist hiring practices in the tech sector; specifically, and not-so-subtly, calling out Silicon Valley. Turns out, one company is looking for experienced developers regardless of age; yes, even the "old" ones.

"Older workers often get left behind, especially when it comes to fast-changing tech roles as very few organizations actively engage this talent demographic," said Jamie Kohn, research director in the Gartner HR practice.

Aug 30 08:54

Do You Live in a Social Capital Desert?

Aug 30 08:13

Veteran Landlord Faces Homelessness After Moratorium Barred Her from Evicting Tenants

An Air Force veteran is now living out of her car after the eviction moratorium prevented her from pushing out tenants who eschewed rent payments for over a year.

“Brandie LaCasse has been waiting on rent for nearly a year. She owns three properties in upstate New York, but the single mother and Air Force veteran is functionally homeless after falling on hard times herself,” reported CBS News.

Owed more than $23,000 in unpaid rent due to federal and state-imposed eviction moratoriums, LaCasse and her daughter have been pushed into living out of her car and staying with friends.

“I’ve cried many nights, like thinking, ‘Where’s my money?'” she said.

“I don’t understand how they can give my private property to somebody to live for free. I bought that property. I fixed it up with my blood, sweat and tears,” she added.

Aug 30 06:58

An Epic Economic Collapse Has Started

Aug 30 06:33

Gas Prices to Rise as Hurricane Ida Shuts Down 95 Percent of Gulf’s Oil Production

Hurricane Ida shut down more than 95 percent of the Gulf of Mexico’s oil production, said regulators, suggesting the Category 4 storm will have a significant impact on energy supply and gas prices.

The federal Bureau of Safety and Environmental Enforcement confirmed the stop in oil production, with firms suspending 1.74 million barrels per day in oil production in the Gulf.

Colonial Pipeline confirmed Sunday it is temporarily shutting down two pipelines between Houston, Texas, and Greensboro, North Carolina, as a precaution due to the storm. They were shuttered “as a precautionary and routine safety measure,” the firm said a statement.

Aug 30 06:30

PERFECT STORMS

Aug 30 05:51

This G7 is a turning point for the West

The chaotic withdrawal from Kabul will be a turning point but now it’s up to us to choose the direction of travel. We can turn this around. That’s why Tuesday’s G7 meeting matters. It will show the determination of the free world to work together.

There will be some key early tells, as gamblers would say, that will give us a clue as to where we’re going.

The first is easy: Who is at the table? Of course, it’s short notice but few nations are more affected than India by the inland tsunami in Asia, or more likely to be important to what happens next. Along with partners from G7 parliaments, I’m calling for India to attend. With Delhi holding the presidency of the UN Security Council, its presence at the meeting would show a commitment not just to bringing others in, but also to leveraging the institutions we have built to defend peace.

Aug 29 22:47

Chase Bank Closes Gen Mike Flynn's Credit Card Account Citing 'Reputational Risk'

Former General Mike Flynn reportedly has had his credit card account with Chase bank closed to punish him for his political views.

Aug 29 10:02

What Are The Best Privacy Coins?

What are privacy coins sometimes also called anonymity enhanced cryptocurrencies (AEC)? They are digital cash alternatives that seek to recreate cash’s anonymity in a world of digital payments.

Why would anyone need privacy or anonymity in their transactions? In today’s world who doesn’t shred their important documents to protect themselves from identity thieves?

Every government, corporation, website, and ecommerce store is collecting more and more metadata on everyone they interact with. All this metadata is sold, bartered and traded so you can be advertised out of your last penny and so your friends, hobbies and patterns can be analyzed to manipulate you in a myriad of ways...

Aug 28 06:20

Social Security’s COLA Isn’t a Raise

Aug 28 05:41

The World Has Gone Mad.... Thanks To The Fed!

Aug 27 12:58

How willing scientists created Covid-19 Fear producing Gigantic Billionaire Wealth

Covid-19 Fear producing Gigantic Billionaire Wealth: The Covid-19 scandal continues to transfer billions into the pockets of the already ultra-rich, while national economies are faltering under the weight of mass unemployment, bankruptcies, debt and despair.

Merging private capital with government funds, the goal of the #Davos World Economic Forum, opens up for a modern billionaire feudalism where the very few gain, writes historian Hanne Nabintu Herland in her regular column at World Net Daily, the largest Conservative network in America.

The world’s super-rich did extremely well during the 2020 coronavirus crisis, increasing their already-huge fortunes by 10 billion USD from April to July alone, according to a UBS and PwC study. America’s richest further boosted their fortunes by $195 billion USD in President Biden’s first 100 days.

Aug 27 10:21

COVID Bailouts Have Nothing to Do With COVID

Aug 27 08:41

Inflation Growing More Persistent

Aug 27 07:34

High Inflation Could Be Stickier Than Anticipated

U.S. inflation showed some cooling off in July after posting large gains in prior months. Consumer prices rose at their slowest monthly pace since February, providing some relief to those in the “transitory” camp, who hold that this bout of inflation isn’t a long-term phenomenon.

But, inflation fears still linger. The year-on-year increase in consumer prices remained stubbornly high at 5.4 percent, the same as in June.

While it’s unclear when inflation could return to a level closer to its 2 percent long-term trend, economists are increasingly talking about a gradual slowdown in inflation in the months and quarters ahead.

In a recent note, Goldman Sachs economists state that current levels of inflation will prove transitory, although a rapidly tightening labor market poses a risk as it could “translate into more persistent inflation pressures down the road.”

Aug 27 07:00

Cuba about to join the crypto revolution

The Cuban government will officially recognize cryptocurrencies for payments on the island, according to a resolution published in the Official Gazette.

The resolution states that the Central Bank of Cuba can now authorize the use of cryptocurrencies “for reasons of socioeconomic interest.”

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