From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. Please LIKE the Lindsey Williams Online Facebook Page to see stories posted daily regarding the current state of the economy around the world.
Latest News From September 2, 2016 to September 15, 2016:
- Bayer clinches Monsanto with improved $66 billion bid
German drug and crop chemical maker Bayer clinched a $66 billion takeover of U.S. seeds company Monsanto on Wednesday, ending months of wrangling with a third sweetened offer that marks the largest all-cash deal on record.
- Italy Funding Panic? Target2 Liabilities Unexpectedly Soar To Record High
During the peak days of the European credit crisis in 2011 and 2012, one of the unfalsifiable indicators used by market watchers to observe the state of Italy's banking system and regional fund flows (mostly outflows from the periphery, inflows into Germany and northern states), was the monthly Target2 balance. Positions within the Target2 system, which settles cross-border payments in the euro zone, are monitored because in a world where all other market signals are corrupt and distorted by central banks (Spanish 10Y bonds yield less than US bonds), they remain a reliable, concurent indicator of financial stress, for example when banks in a country lose foreign funding.
- Brace For “VaR Shock” – How The Bank Of Japan May Be About To Unleash A Global Selloff
As we pointed out recently, Japan has been quietly undergoing a mini bond tantrum as over the past two months, its sovereign debt suffered the worst rout in 13 years, handing investors bigger losses over the past two months than any other government bonds, amid speculation the Bank of Japan plans to change its asset-purchase strategy.
- The Only Sure Conclusion About the G20 Summit
The G20 summit in China came and went with the usual pompous statements at the end: “The communiqué reiterates the essential role of structural reforms in boosting productivity and output, as well as in promoting growth in G20 countries. The choice and design of structural reforms are consistent with countries’ specific economic conditions,” the People’s Daily sums up one of the points on the agenda. The other points where the G20 reached some kind of consensus were trade, anti-corruption, financial reform, investment, industrialization, entrepreneurship, climate change, innovative growth, and development.
- This Will Devastate People All Over The World
With continued uncertainty in global markets, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News about what is going to devastate people all over the world. Egon von Greyerz: “The autumn of 2016 has for some time looked like a period when dark clouds will move in over the world economy. Therefore, it was not surprising to see the first sign of things to come in the next few months. In one day the Dow erased all the gains since early July with an almost 400 point fall. Since the beginning of the year the Dow is now up a pitiful 2.6%. Almost 8 years of ZERO interest rates have not managed to revive the US economy, nor the world economy…
- The Bubble Burst You Didn’t See Coming
In the next great crash, everything will get swept up in the onslaught – with virtually no exceptions. And that goes too for what we eat! The 30-Year Commodity Cycle peaked in mid-2008 and has been the first major bubble to crash and burn. The CRB (Commodity) Index has been down as low as 67%, with the potential for 74% or lower in the next few years. Among individual commodities, oil has been down as much as 82% in early 2016. Iron ore and steel have been down 76% with a potential for 88%.
- Another Big Central Bank Warns on Housing Bubble, Frets about Risks to Banks, Blows Whistle on Stimulus
For Chinese households, owning residential property serves as a mix of risk-free savings account (on the premise, valid in the US as well, that “you can’t lose money in real estate”) and highly leveraged speculative betting game. Some people own vacant apartments like Americans own stocks. A report in 2014 showed that 75% of household wealth had been sunk into real estate. Whatever the percentage is today, it’s high, to where major declines in house prices have caused uproars.
- George Soros Warns Europe: Accept Refugees Or Face Extinction
The refugee crisis in Europe was already pushing the European Union toward disintegration when, on June 23, it helped drive the British to vote to Brexit the EU. The refugee crisis and the Brexit calamity that it spawned have reinforced xenophobic, nationalist movements that will seek to win a series of upcoming votes – including national elections in France, the Netherlands, and Germany in 2017, a referendum in Hungary on the EU refugee policy on October 2, and a rerun of the Austrian presidential election on the same day.
- Groupthink Lunacy—-Negative 2% Rates, Cash Bans And Monetary Voodo
Looking for group think, extrapolation of extreme silliness, linear thinking, and belief in absurd models? Then look no further than Fed presidents, their advisors, and academia loaded charlatan professors. Today’s spotlight is on Marvin Goodfriend, a former economist and policy advisor at the Federal Reserve’s Bank of Richmond, and Ken Rogoff, a chaired Harvard economics professor, a one-time chief economist at the International Monetary Fund.
- The Signs Of Desperation In A “Twilight Zone Of Ignorance”
Idiocy and mendacity are a bad combo in the affairs of nations, especially in elections. The present case in the USA displays both qualities to near-perfection: on one side, a boorish pseudo-savior in zero command of ideas; on the other side, a wannabe racketeer-in-chief in full command of her instinctive deceit. Trump offers incoherent rhetoric in opposition to the current dismal order of things; Clinton offers empty, pandering rhetoric in defense of that order. Both represent an epic national drive toward political suicide.
- Jim Grant Rejects Rogoff's “Curse Of Cash”, Warns “Government Wants To Control Your Money”
If there is a curse between the covers of this thin, self-satisfied volume, it doesn’t have to do with cash, the title to the contrary notwithstanding. Freedom is rather the subject of the author’s malediction. He’s not against it in principle, only in practice. Ken Rogoff is a chaired Harvard economics professor, a one-time chief economist at the International Monetary Fund and (to boot) a chess grandmaster. He laid out his case against cash in a Saturday essay in this newspaper two weeks ago. By abolishing large-denomination bills, he said there, the government could strike a blow against sin and perfect the Federal Reserve’s control of interest rates.
- Sorry, You Can't Have Your Gold
We warn regularly of the risk involved in storing wealth in banks. They’ve made the removal of your deposits increasingly difficult in addition to colluding with governments to allow them to legally freeze or confiscate your money. To add insult to injury, they’re creating reporting requirements with regard to the contents of safe deposit boxes and restricting what can be stored in them – again, at risk of confiscation.
- The Coming Crash Will Create An Economic Tsunami, Skyrocketing Gold And Usher In A Whole New World
With many investors worried about the economic turmoil that has engulfed the globe, the coming crash will create an economic tsunami, skyrocketing gold, and usher in a whole new world. Gold Will Anchor New Monetary System. Stephen Leeb: “All roads lead to Rome, which is to say there are many ways the Chinese have of effecting a new monetary system that will include gold as an anchor. The new system may evolve gradually, but it is growing more likely that it will be created out of chaos. In the last interview with you, Eric, I spoke of SDR’s as a route. And that is still a high probability. Recall, the SDR route requires the inclusion of the Renminbi in the SDR basket along with the Dollar, Euro, Pound, and Yen…
- Globalized, Centralized, Compacted: They Cull The Population To Make Us Rely On Government
With each step forward, the powers-that-be are controlling us more and more, reducing the population and forcing people to rely upon a centralized, collective government. The global agenda to centralize control explained by Aaron Dykes in the video below.
- Wells Fargo scandal is just the beginning… here’s what else they’re hiding–
On Thursday, Wells Fargo admitted to secretly creating millions of bank and credit card accounts over the past 5 years without their customers’ knowledge or consent. They would typically create, say, a new savings account for a customer, then transfer funds from his/her existing checking account into the new bogus savings account without ever once asking permission. This is a pretty horrendous practice that tells you everything you need to know about banking.
- Why Are So Many Conservatives, Preppers And Christians Moving To The Great Northwest?
Thousands of Americans are flocking to “Big Sky” country, and this movement has become so prominent that it has even caught the attention of the mainstream media. Within the last several weeks, both The Chicago Tribune and The Economist have done major articles on this phenomenon. From all over the country, conservatives, preppers and Bible-believing Christians are moving to Montana, Wyoming, Idaho and the eastern portions of Oregon and Washington. As you will see below, this region has become known as the “American Redoubt”, and for a variety of reasons it is considered by many survivalists to be one of the top “safe zones” for when things really start falling apart in this nation.
- Tent Cities Full Of Homeless People Are Booming In Cities All Over America As Poverty Spikes
Just like during the last economic crisis, homeless encampments are popping up all over the nation as poverty grows at a very alarming rate. According to the Department of Housing and Urban Development, more than half a million people are homeless in America right now, but that figure is increasing by the day. And it isn’t just adults that we are talking about. It has been reported that that the number of homeless children in this country has risen by 60 percent since the last recession, and Poverty USA says that a total of 1.6 million children slept either in a homeless shelter or in some other form of emergency housing at some point last year. Yes, the stock market may have been experiencing a temporary boom for the last couple of years, but for those on the low end of the economic scale things have just continued to deteriorate.
- ALERT: Celente Warns This Is About To Rock Global Financial Markets And Gold
Today the top trends forecaster in the world, Gerald Celente, warned King World News about what is about to rock global financial markets and gold. The Fed Is In A Trap. Gerald Celente: “You have all of this money that has been borrowed and it went into emerging markets and inflated them artificially. But if the Fed raises interest rates the dollar gets stronger. If the dollar gets stronger, the resource-rich currencies get weaker. And they have to pay back all of this debt in dollars. So the Fed is in a trap…
- 12 Survival Skills to Learn and Master for SHTF
When it comes to survival, having a stockpile of stuff is not enough. You need to have skills, too. And yet, when it comes to preparedness skills, there is no hard and fast set of rules. There are simply too many variables for a one size fits all list of things you must know and things you must learn if living conditions and economic realities become dire. It is for that reason I often write in generalities. That way you can pick and chose those skills and those items that fit your lifestyle.
- The Six Presidents Causing US Bankruptcy
Since Reagan came to power in 1981, the US has had a total of five presidents who have spent ever increasing amounts of money to hang on to power and buy votes. This has resulted in the most extraordinary money printing venture in history. It is not just central banks that print money. Governments that borrow vast amounts of money are also performing a printing function since money is created out of thin air. And even worse than that, the US government neither has the intention nor the ability to ever repay the debt with real money. Thus the US debt can only vaporise when the country defaults. Since there is no other way of eradicating this debt, a default by the US is guaranteed to take place in coming years. But before that, the Fed and the US government will flood the market with jumbo jet money since helicopter money won’t suffice. The jumbo jet money will create hyperinflation but it will never repay the debt since all it does is to increase the amount of debt outstanding from trillions of dollars to quadrillions.
- Mexico To Cut More Than US$5 Billion From Pemex Budget
Mexican finance minister Jose Antonio Meade announced on Thursday that approximately US$5.4 billion in funds for state-run oil firm Pemex will be eliminated from the proposed federal budget in 2017. “Pemex is making the biggest contribution to the cuts,” Meade said about the company that will see an 18 percent reduction in funds and will make up some 41 percent of the US$12.83 billion slashed from the budget.
- An OPEC Production Freeze Could See Oil Prices Rise To $60
Russian President Vladimir Putin is keen to reach an agreement with OPEC to freeze oil production in hopes of prices regaining strength. With the U.S. shale boom supplying most of North America, OPEC has increased production to maintain their market share. This has caused massive price reductions, putting many countries at a loss. Two years ago crude oil was priced at around $100/barrel, but in today’s inundated market it rests below $50. Russia is struggling economically, as it leads the world in energy exports and oil comprises 40 percent of its revenue. The country is considering tax reforms on oil companies, potentially hurting the industry further. This could lead to job cuts and shutting down of decade old wells. President Putin is determined to repair his nation’s economy.
- Employee Pay Slashed by 5 Percent at Baker Hughes
A new furlough plan is to blame for a 5 percent cut in pay for workers at Baker Hughes. The Houston energy giant’s program was meant to lower costs and the need for job cuts, but current employees are feeling the effect of the plan on their paychecks. Baker Hughes says the cuts aren’t permanent, that they will only occur from the pay period starting September 11 through the last paycheck of 2016. In an internal memo obtained by the Houston Chronicle, Baker Hughes offered holidays in exchange for the loss in pay. The holidays given are for October 10, November 23, December 23, and December 28.
- Saudi Arabia Said to Weigh Canceling $20 Billion of Projects
Saudi Arabia is intensifying efforts to shrink the highest budget deficit among the world’s biggest 20 economies, aiming to cancel more than $20 billion of projects and slash ministry budgets by a quarter, people familiar with the matter said. The government is reviewing thousands of projects valued at about 260 billion riyals ($69 billion) and may cancel a third of them, three people said, asking not to be identified as the discussions are private. The measures would impact the budget for several years, according to two of the people.
- South African economy reaps benefit of weak rand
The South African economy has reaped the benefits of a weaker rand, with a 6.6 per cent increase on final sales in the second quarter, an 18.1 per cent surge in exports and 5.1 per cent decline in imports, a report from the national statistics agency showed on Tuesday. Final sales are calculated by subtracting the change in inventories from the gross domestic product (GDP), on a quarter-by-quater (q/q) seasonally adjusted annualized (saa) basis.
- G20 2016: Toward an inclusive global economy
The G20 summit opens today, attempting to bring back the spotlight on the global economy and strengthening trade ties in a climate that sees the international sphere huddle over security concerns. This year’s summit is hosted by China in the southeastern city of Hangzhou, and many analysts have said that it is Beijing’s chance to host one of the most significant gatherings of world leaders in its history.
- Rising Rates: Financial Extinction Level Event Coming-Michael Krieger
Former Wall Street analyst Michael Krieger says the key to predicting this market is to watch interest rates. Krieger explains, “Do I think that there is going to be a huge U.S. currency devaluation next month? No I don’t, but on the flip side, there is going to be some sort of financial calamity. What I am looking at personally is interest rates.
- Iconic Hedge Fund Perry Capital Loses 60% Of AUM As Investors Flee
The slow-motion trainwreck that is the hedge fund investing world, which as we documented one month ago has failed miserably – if predictably – to compensate LPs for its 2 and 20 model, and generate outsized returns during a regime of central planning, having created zero alpha since 2011…
- Friday Was Just The Start: Here Are Goldman's 5 Reasons Why The Selling Will Continue
After 40+ days of the S&P going virtually nowhere on muted volume, cross-asset correlations soaring to all time highs, and quant funds leveraging to record levels, it all just snapped on Friday the “volatility on the sidelines” finally made a grand entrance right back into the market, which tumbled the most since Brexit, and closed below its 2015 highs.
- Visualizing The (Massive) Size Of The US National Debt
When numbers get into the billions or trillions, they start to lose context. As Visual Capitalist's Jeff Desjardins notes, the U.S. national debt is one of those numbers. It currently sits at $19.5 trillion, which is actually such a large number that it is truly difficult for the average person to comprehend. How big is the U.S. National Debt? The best way to understand these large numbers? We believe it is to represent them visually, by plotting the data with comparable numbers that are easier to grasp.
- The Disturbing Signs Of Global Conflict Continue To Gather Pace
The signs are ominous, the rhetoric constant. Whichever way you look at it, the world is slowly descending into an ever greater spiral of conflict. We all know that the current wars raging in the Middle East have the potential to go catastrophically wrong and pull the super-powers into something much bigger.
- This One Chart Should Drive Investors Into Buying Gold & Silver
The U.S. financial system is in serious trouble and this one chart confirms it. Investors who understand the negative consequences of this chart would be buying physical gold and silver hand over fist. Unfortunately, Americans have been put to sleep by the Mainstream media as they continue to report that “business as usual forever and everything will be okay.” However, the opposite is the case as the U.S. economy and the financial system continue to disintegrate under the forces of massive debt, zero interest rates and a collapsing energy industry. This is not a situation that will continue for many years or decades. This will likely collapse much sooner than most Americans realize.
- The Era of Central Planning is Crumbling… and the Elite Are Terrified
The biggest issue in financial political power structure today is the End of Centralization. In the post 2008 era, the Globalists made a major push to hold the system together. The multi-billionaire class, particularly those who made fortunes from crony capitalism and bubble economics joined forces with the Keynesian media shills to convince the world that the only way we would survive would be if trillions of Dollars were given to those who were deemed “systemically important.”
- As The World Economy Is Burning Central Bankers Are Clueless
The more things change, the more they stay the same. The financial world loves focusing on some future event that they think will change everything. There is always some economic data, an important meeting like G20, the Fed, the ECB or a speech by Yellen or some other central bank head who hasn’t got a clue what is happening or what will happen. So now at the end of August, markets have all been focusing on Yellen’s speech at Jackson Hole Wyoming. Jackson Hole is of course a very befitting name since what the Fed is starring into is a massive black hole into which major parts of the financial system will disappear.
- One Of Richard Russell’s Last And Most Amazing Predictions Is Now Unfolding
Late last year, Richard Russell made one of his last and most amazing predictions ever. Below is what the Godfather of newsletter writers had to say. From legendary Richard Russell: “Americans are scared to death and befuddled by the news of the day. They are well aware that their own lives and jobs have little to do with the nonsense that the Fed and the government is shoveling out to them.
- Gerald Celente Issues Updated Trend Forecast For The Rest Of 2016
With the price of gold and silver surging recently, today top trends forecaster Gerald Celente issued an updated trend forecast for the rest of 2016. Trend Alert: Central Banks Shooting Blanks. Gold Bull Run. Gerald Celente: Go back to the end of August. It was all the business news. Federal Reserve Chair Janet Yellen, speaking at a meeting of leading central bankers in Jackson Hole, Wyoming, boasted that thanks to Fed policy, the United States economy was on the road to solid recovery and labor-market growth was strong…
- The Tide is Turning: The Official Story Is Now The Conspiracy Theory — Paul Craig Roberts
In a few days it will be the 15th anniversary of 9/11, and this November 22 will be the 53rd anniversary of the assassination of President John F. Kennedy in Dallas, Texas. These two state crimes against democracy destroyed American democracy, accountable government, and the Constitution’s protections of civil liberty. Years after the damage done by these events, the American people no longer believe the official stories. Neither does the government, but the government will never validate the distrust that Americans now share of the oligarchs’ government by acknowledging the truth.
- When they say ‘hoarding’ instead of ‘saving’ you know you’re in trouble
As Mark Twain is purported to have once said, “Predictions are hard, especially about the future.” And with this principle in mind, libertarian Harry Browne advocated a four-factor portfolio to protect investors “no matter what the future brings”. Such a portfolio would have to cater to at least four separate economic outcomes: Prosperity: a period during which living standards are rising and the economy is growing; Inflation: a period during which consumer prices are rising; Recession: a period during which the growth is slowing (or negative); Deflation: a period in which consumer prices are declining. Only four types of investments would cover all these separate bases in Browne’s so-called ‘Permanent Portfolio’.
- Police seize over 5,000 ounces of silver from man’s home
Last week in the Australian state of Queensland, federal police confiscated a whopping 5,465 ounces of silver (worth roughly $106,000) from a man’s home. This was part of a larger series of police raids instigated by the Australian Tax Office against individuals suspected of tax evasion.
- Major Problems Announced At One Of The Largest Too Big To Fail Banks In The United States
Do you remember when our politicians promised to do something about the “too big to fail” banks? Well, they didn’t, and now the chickens are coming home to roost. On Thursday, it was announced that one of those “too big to fail” banks, Wells Fargo, has been slapped with 185 million dollars in penalties. It turns out that for years their employees had been opening millions of bank and credit card accounts for customers without even telling them. The goal was to meet sales goals, and customers were hit by surprise fees that they never intended to pay. Some employees actually created false email addresses and false PIN numbers to sign customers up for accounts. It was fraud on a scale that is hard to imagine, and now Wells Fargo finds itself embroiled in a major crisis.
- Peter Schiff: History Will Remember These Times as a Great Depression
For whatever reason (cough, the globalist controlled media trying to use sheer willpower to force a narrative into reality, cough), there have been several articles that have come out lately suggesting gold and silver might getting ready for a potential crash. If you happen to own gold or silver, don't worry, because the vast majority of most economists are long on both metals. Nonetheless, since there have been a fair number of rogue articles suggesting a possible a dip in prices, or even a crash, in the following interview between RT television and Peter Schiff, it's the first topic Peter is asked to comment on.
- Soros: Western Society Must Fall Before One World Govt Can Be Established
In the following video, Alex Jones begins by making a general statement in response to a question he’s been asked more times than he cares to count over the course of his professional career. The question always comes from the willfully ignorant, normally in a very condescending tone, and it often sounds something like, “If there really is a big bad secret world government, then where is it, and tell us who runs it.” Alex’s response is perfect. He says it’s really not a secret who runs the TransPacific Partnership. It’s really not a secret who runs the IMF, and the World Bank. It’s also really not secret who runs the United Nations. These days, the globalists are so over the top and in our faces about what they’re doing, sometimes information is learned that can later appear to have been kept secret, but that’s normally more the result of the public’s limited access to programs inside certain institutions, rather than a deliberate effort to conceal information.
- Bubbles are Everywhere in Franken Markets-Chris Martenson
Resource analyst and futurist Chris Martenson says “bubbles are everywhere,” and it’s the fault of central banks. Martenson explains, “Italian 10-year debt is trading with a lower yield than 10-year U.S. debt. That’s because the European Central Bank (ECB) has created a massive bubble in the bond market. . . . We’ve got housing bubbles all over the globe in Australia, Canada, the United States, Hong Kong, London and you name it. This is simple because, and there is no mystery about it, the central banks have printed lots and lots of money, trillions and trillions, and people have gone out and bought things with all that money, and it has driven up the prices of things. That’s what the Fed wanted to accomplish. The only problem is when the Fed does, this they want to say, hey look, record high stock prices. Hey look, record high bond prices, as if this is a win for everybody and it’s not. There’s a lot of losers in that story.”
- Pre-Collapse More Dangerous Than Actual Collapse-Warren Pollock
Geopolitical and financial analyst Warren Pollock says danger for all Americans is here right now. Pollock explains, “Where we are is more important than where we will be because right now, we are in sort of a Twilight Zone of transition between stability and instability. I think this is a dangerous time, and for some, it will be more dangerous than the actual collapse. . . . The entire system we live in today is one large racketeering engine, and we really have to understand that for us to negotiate around this looting that is going to occur. You cannot eliminate all the looting from your life, but you can go around it to a certain degree. For example, you might need a pair of eyeglasses and spend several hundred dollars when someone in China can make eyeglasses for $5 or $10 of the same or better quality. . . . There is no competition in the United States. There is no free election. There is no free market. There is not capitalism. All of these things that you believe to be in place right now are lies. . . . It’s procedural racketeering. It is the veneer of a functioning economy or a functional system. This sort of procedural racketeering is also procedural control and procedural information gathering. It is dystopia of epic proportions.”
- “Zombie Apocalypse”: The Hanjin Bailout that Didn’t Happen
South Korea’s Hanjin Shipping Co., the world’s seventh largest container carrier and a unit of Hanjin Group, Korea’s 10th-largest conglomerate that also controls Korean Air Lines, has been in financial trouble for a long time. Bankruptcy or rather a government bailout, not only for Hanjin, but also of the second largest Korean carrier, Hyundai Merchant Marine (HMM), has been bandied about for as long. HMM was restructured, with creditors taking a big hit, including its main creditor, the state-owned Korean Development Bank which in the process became HMM’s largest shareholder, which boils down to a taxpayer bailout. Pending regulatory approval, the restructured HMM will join 2M carriers Maersk Line and MSC in a new alliance next April.
- Crude Oil Freight Rates Plunge to Record Lows
The rates for shipping a tanker-load of crude oil by Very Large Crude Carriers (VLCC) from Rotterdam, Europe’s largest port for the throughput and storage of crude oil, to Singapore, the world’s largest crude oil transshipment center, have dropped another $200,000 since the last assessment, to $2.25 million, according to S&P Global Platts, the lowest level for that route since Platts started tracking VLCC data in 2006. That’s down by $4.15 million from the $6.4 million price tag in January – a 64% plunge in eight months! Platts blamed the “large supply of available ships” on the Europe to East route.
- The Great Debt Unwind Beneath the Surface: US Commercial Bankruptcies Soar
Not that you would have guessed from the stock market, hovering at all-time highs, or from soaring junk bonds, even the riskiest paper: CCC-and-below rated junk bonds skyrocketed since their February 12 low as their average yield plunged from 21.6% to 13.5%. Even the S&P US Distressed High Yield Corporate Bond index has soared 57% since February 12. Those are miracles to behold.
- Goldman Sachs Just Launched Project Fear in Italy
Project Fear began two years ago in the run up to Scotland’s national referendum. It then spread to the rest of the UK in the lead up to this summer´s Brexit referendum. But it keeps on moving. Its latest destination is Italy, where the campaign to instill fear and trepidation in the hearts and souls of Italy’s voters was just inaugurated by the world’s most influential investment bank, Goldman Sachs.
- Dell-EMC to Lay Off 2,000 – 3,000 US Workers after Requesting 5,000 H-1B Visas & Green Cards to Import Foreign Workers
The ink was barely dry on Dell’s acquisition of EMC, the largest technology deal ever, valued at $67 billion when it was announced in October last year – and already the layoff rumors are oozing from the woodwork. “People familiar with the company’s plans” told Bloomberg that Dell will cut 2,000 to 3,000 jobs. Dell spokesman Dave Farmer refused to comment specifically on the report on Thursday but said instead, as sort of a confirmation: “As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur.”
- Developing Countries Emulate The US, Turn Citizens Into Debt Slaves
One of the big advantages of being a Latin American or Asian country used to be — somewhat counter-intuitively — the lack of credit available to most citizens. The banking system in, say, Brazil or Thailand simply wasn’t “advanced” enough to offer credit card, auto, or mortgage loans on a scale sufficient to turn the locals into US-style debt slaves. But that, alas, is changing as those countries adopt their rich cousins’ worst habits. Brazil, for instance, was once seen as a Latin American success story and future world power. But then it ramped up government spending and started encouraging its people to become “consumers.” And the rest is familiar, if depressing, history.
- More Indications of Labor Slowing—-Yellen’s Favorite Index Hits The Skids
The Federal Reserve’s Labor Market Conditions Index (LMCI) fell to contraction again in August. After rebounding in July for the first positive reading of 2016, the LMCI dropped to -0.7 in the latest update. As usual, revisions have reshaped the levels of indicated problems throughout the past two years, but overall the trend remains. From this view of the labor market, the economy is surely slowing even if taking two years to suggest by how much.
- The War On Cash Intensifies
Government campaigns of intimidation — like the wars on drugs, terror, and poverty — have been used to extort the public for decades. Despite the previous failures of institutional “wars,” a new war on cash is being waged that threatens freedom in a more subversive way than ever before. Banks and governments around the world are cracking down on the use of paper money, and in turn, eliminating any anonymity left in the current system. Through strict rules on cash transactions and civil asset forfeiture laws, for example, the system has already instituted penalties for using cash. But as payments evolve into a purely digital network, the consequences of this new paradigm are being brought into the spotlight.
- The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning To Burst
Do you remember the subprime mortgage meltdown from the last financial crisis? Well, this time around we are facing asubprime auto loan meltdown. In recent years, auto lenders have become more and more aggressive, and they have beenincreasingly willing to lend money to people that should not be borrowing money to buy a new vehicle under any circumstances. Just like with subprime mortgages, this strategy seemed to pay off at first, but now economic reality is beginning to be felt in a major way. Delinquency rates are up by double digit percentages, and major auto lenders are bracing for hundreds of millions of dollars of losses. We are a nation that is absolutely drowning in debt, and we are most definitely going to reap what we have sown.
- WTF Chart Of The Day: US Factory Orders Tumble For Longest Streak In History
21 Months… US Factory Orders have decline year-over-year every month since October 2014 (the end of QE3). This is the longest period of decline in US history (since 1956) and has always indicated the US economy is in recession… While headlines will crow of 1.9% MoM gain (which missed expectations of a 2.0% rise), the trend is simply ugly – Year-over-year Factory Orders fell 3.5%.
- Services Economy Crashes To Feb 2010 Lows, Confirming Manufacturing Collapse
Following last week's disappointing Manufacturing ISM/PMI data, Services PMI printed a six-month-low 50.9 over the weekend “pointing to an annualised GDP growth rate of a mere 1%,” according to Markit. Services jobs fell to their weakest since Dec 2014 but the ISM Services data collapsed to 51.4 – lowest since Feb 2010 with new orders imploding to their weakest since Jan 2014.
- From An Industrial Economy To A Paper Economy – The Stunning Decline Of Manufacturing In America
Why does it seem like almost everything is made in China these days? Yesterday I was looking at some pencils that we had laying around the house and I noticed that they had been manufactured in China. I remarked to my wife that it was such a shame that they don’t make pencils in the United States anymore. At another point during the day, I turned over my television remote and I noticed that it also had “Made In China” engraved on it. It is still Labor Day as I write this article, and so I think that it is quite appropriate to write about our transition from an industrial economy to a paper economy today. Since the year 2000, the United States has lost five million manufacturing jobs even though our population has grown substantially since that time. Manufacturing in America is in a state of stunning decline, our economic infrastructure is being absolutely gutted, and our formerly great manufacturing cities are in an advanced state of decay. We consume far more wealth than we produce, and the only way that we are able to do this is by taking on massive amounts of debt. But is our debt-based paper economy sustainable in the long run?
- The Percentage Of Working Age Men That Do Not Have A Job Is Similar To The Great Depression
Why are so many men in their prime working years unemployed? The Obama administration would have us believe that unemployment is low in this country, but that is not true at all. In fact, one author quoted by NPR says that “it’s kind of worse than it was in the depression in 1940″. Most Americans don’t realize this, but more men from ages 25 to 54 are “inactive” right now than was the case during the last recession. We have millions upon millions of strong young men just sitting around doing nothing. They aren’t employed and they aren’t considered to be looking for employment either, and so they don’t show up in the official unemployment numbers. But they don’t have jobs, and nothing the Obama administration does can eliminate that fact. According to NPR, “nearly 100 percent of men between the ages of 25 and 54 worked” in the 1960s. In those days, just about any dependable, hard working American man could get hired almost immediately. The economy was growing and the demand for labor was seemingly insatiable.
- Fed's-Own Jobs Indicator Tumbles (Again)
For the 7th month of the last 8, The Fed's Labor Market Indicator has dropped. August's 0.7% slump slams the door shut on July's brief bounce which is confirmed by the collapse in ISM Services and Manufacturing employment indices… If The Fed hikes rates into this, then there is far more going on than meets the eye and Janet is in panic “out of ammo” mode.
- Low College Enrollment Sign of Education Bubble
Another bad US economic indicator is becoming a focus for economic policy makers. Last month at the economic symposium at Jackson Hole, Janet Yellen said, “As a society, we should explore ways to raise productivity growth … improving our educational system and investing more in worker training.” Yellen is referring here to the production efficiency that occurs when incoming, better-educated college graduates enter the labor force, bring their new knowledge, and create better processes. This is commonly called the “productivity miracle” and has been a reliable economic phenomenon for 50 years.
- The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning To Burst
Do you remember the subprime mortgage meltdown from the last financial crisis? Well, this time around we are facing a subprime auto loan meltdown. In recent years, auto lenders have become more and more aggressive, and they have been increasingly willing to lend money to people that should not be borrowing money to buy a new vehicle under any circumstances. Just like with subprime mortgages, this strategy seemed to pay off at first, but now economic reality is beginning to be felt in a major way. Delinquency rates are up by double digit percentages, and major auto lenders are bracing for hundreds of millions of dollars of losses. We are a nation that is absolutely drowning in debt, and we are most definitely going to reap what we have sown.
- There Are 9.93 Million More Government Workers Than Manufacturing Workers
The August jobs report was filled with some interest factoids, like there are now 9.93 million government workers than there are manufacturing workers. That is a ratio of 1.81 government workers for every manufacturing worker. Such was not always the case. But a variety of factors such as labor cost differentials, EPA regulations and taxes had led to manufacturing jobs to be sent overseas. Now a 1.81 government to manufacturing employment ratio is called OVERHEAD. And you wonder why high paying manufacturing jobs are fleeing to other countries?
- Brzezinski's Ruse: American Empire Is Dead, China and Russia Take Over
Zbigniew Brzezinski has written an article in The American Interest titled “Towards a Global Realignment” that has received a tremendous amount of attention on the internet, along with much gloating. Brzezinski is an architect of the world’s current military and economic disasters and as such he has plenty of enemies. With this article, they see him recanting his previous arrogance and vision of a worldwide US hegemony. In fact, in the alternative media, many champion his apparent admission as a huge win for the world and a huge defeat for imperialism.
- Wall Street Week Ahead: Sleepy summer may give way to freaky fall
The dog days of summer have lived up to their sleepy reputation this year as far as U.S. stocks are concerned, but market gyrations could soon pick up as a traditionally more volatile time of year looms. The S&P 500 index's 1-month realized volatility, a measure of market choppiness over the past 30 days, is stuck near all-time lows, according to Thomson Reuters data. Even the early-summer jolt from the surprise Brexit vote proved short-lived, and the S&P has not seen a 1-percent price move, up or down, on any day since early July. Yet all that could change quickly given the abundance of catalysts that can rattle markets in the weeks ahead, market watchers said.
- Cuba Turns to Foreign Investors as Cheap Venezuelan Oil Fades
Nearly two years after presidents Barack Obama and Raul Castro announced a thaw in relations, Cuba’s communist government is turning to foreign investors to boost renewable energy as it faces cutbacks in cheap oil imports from Venezuela. The government formed by Fidel Castro in 1959 and led by his brother, Raul, is pitching large wind and solar projects and biomass plants that run on sugar cane to foreign companies at conferences like one opening Thursday in Havana. The goal: Bring billions of dollars into sectors that until recently were controlled by state-run entities, and lift the amount of electricity produced by renewables to 24 percent by 2030 from 4 percent today.
- Donald Trump: Champion For Christians
The following is a list of the political resolves and policy positions Donald Trump has made in support of the Christian faith and the Christian community.
- Obama's Sneak Attack On U.S. Sovereignty Sets Stage For Climate Regulation
The regulations, they are a-coming. That's what at least one noted climate skeptic warned, pointing to the very capable pen and phone politicking of President Obama that's allowed him great success in bypassing Congress on various pet agendas – particularly, on those dealing with the environment, and even more particularly, on one provision he signed earlier this year, the Paris Accord. The measure supposedly commits America to abide what the Obama administration described as “the most ambitious climate change agreement in history.”
- The Coming Bloody Revolution In America
America IS being intentionally destroyed, says Roy Masters, and he's not talking about Russians. As an Englishman who loves America, the real America, Masters has for 27 years been warning Americans about the disintegration of their country on his syndicated radio program, “How Your Mind Can Keep You Well.” Here for the first time, he is laying out what he sees in store for this country in the years ahead. The American system was founded on an idea so radical and seemingly beyond human nature that, technically speaking, America shouldn't even exist. And the notion that human beings could govern their own lives responsibly, respecting the rights of others, without the need for a king or tyrant, but only for public servants, ran contrary to all other governments in the history of the human race. In just two short centuries, America has shamed the rest of the world with its mind-boggling success, freedom and wealth.
- 11,700 Petrobras Employees Sign Up To Get Fired
Over 11,700 Petrobras employees signed up to get fired through the Brazilian energy firm’s voluntary dismissal program, according to a new report by Bloomberg. The government-owned company set up the program to reduce debt and reduce operational costs by $10 billion in the coming years as global oil prices stay low. Petrobras workers had until August 31st to sign up for the voluntary dismissal program, through which they would be eligible for severance benefits. Paying out the benefits for the 12,000 workers the company plans to let go will cost $1.23 billion, an official statement said Friday. The firm’s stock prices rick by 4.5 percent Friday morning – the highest jump since August 11th. Petrobras’ stock prices have doubled over the course of 2016 after sinking to a 17-year low in January. So far, the company has pulled out of major investments and stabilized fuel prices in Brazil in order to keep revenues up as the bear market for oil passes.
- Are You a Mind-Controlled CIA Stooge? — Paul Craig Roberts
Do you smirk when you hear someone question the official stories of Orlando, San Bernardino, Paris or Nice? Do you feel superior to 2,500 architects and engineers, to firefighters, commercial and military pilots, physicists and chemists, and former high government officials who have raised doubts about 9/11? If so, you reflect the profile of a mind-controlled CIA stooge. The term “conspiracy theory” was invented and put into public discourse by the CIA in 1964 in order to discredit the many skeptics who challenged the Warren Commission’s conclusion that President John F. Kennedy was assassinated by a lone gunman named Lee Harvey Oswald, who himself was assassinated while in police custody before he could be questioned. The CIA used its friends in the media to launch a campaign to make suspicion of the Warren Commission report a target of ridicule and hostility. This campaign was “one of the most successful propaganda initiatives of all time.”
- Climate pact: After years of talk, focus shifts to action
Eight months after 195 nations concluded a hard-fought climate rescue pact, pressure is mounting to put its carbon-cutting promises into action as world leaders gather at G20 and UN meetings this month. The historic deal reached in Paris in December has been signed by 180 countries, but will only take effect after 55 nations responsible for 55 percent of greenhouse gas emissions have ratified it—making it binding. China—responsible for around 25 percent of global carbon emissions—ratified the pact Saturday, ahead of a meeting of G20 leaders where the United States is also expected to follow suit, considerably boosting efforts. Until Beijing joined the club, only 24 nations emitting just over one percent of the global total had officially acceded, according to the UN climate body overseeing the deal to cap global warming at two degrees Celsius (3.6 degrees Fahrenheit) over pre-Industrial Revolution levels.
- Sorry Losers! How the Fed has screwed the many to benefit the few
By its actions, the Federal Reserve has selected a precious few winners and many, many losers. Sadly, you are highly likely to be one of the losers. Sorry! I'm one, too, if that helps soften the blow. But we have a lot of company. Other losers include: Savers, Anyone with money in a checking account, Anyone with money in a savings account, Anyone with money in a CD, Anyone depending on bond income, All pensions, Endowments, First time homebuyers, Renters, Those who invest based on fundamentals, Everybody alive in the future, when the bills come due, Anyone on this list has been intentionally pre-selected by the Fed for losing. The Fed has done this deliberately, with full pre-knowledge that it was going to diminish the prospects of the majority in favor of the benefit of an elite few. And to make matters worse, it has no plans to — and no clue how to — reverse the damage it has wrought.
- Mike Maloney: This Is The Peak To be followed by ‘one hell of a crisis'
Precious metals dealer and monetary historian Mike Maloney is quite confident the liquidity-driven ‘recovery' created by the world's central banks is now over. In his estimation, the path ahead is one of accelerating descent into inevitable currency destruction.
- Are You Ready For The End Game? […It’s Coming] — Andy Hoffman
Andy Hoffman is back to kick off September by helping us document the collapse. From 6.2 BILLION in PAPER Gold dumped on the futures market in just the past week to BREXIT 2 which Andy predicts is coming in November when Trump beats Hillary, the end game is coming into focus quickly.
- Prepping 101: The Ultimate Zero to Hero Guide to Prepping
Forget the Zombie apocalypse. Real zombies are , in fact, starving mobs of people that will beg you for a loaf of bread when disaster strikes and they’ve got nothing to eat. Forget those reality T.V. shows, too. Those are just exaggerations by the media to get increased ratings. Prepping is like an insurance for a number of critical events that could harm you, your family, your home, your town, or your city. You don’t expect to crash your car and die every time you get behind the wheel, do you? Yet you still pay insurance. Think of prepping in the same way. You have to take steps to ensure your long term-survival.
- What Life Will Be Like After an Economic Collapse
If you have been waiting for a public announcement or news headline to let you know that an economic collapse has begun, you are in for the surprise of your life. If history in other countries and in Detroit, Michigan is any indication, there won’t be an announcement. An economic collapse tends to sneak up on a city, region, or country gradually over time. In some cases, the arrival of an economic collapse is so gradual that most people living in it aren’t even aware of it at first. Things just get gradually worse, often so gradually that people and families adjust as best they can until one day they actually realize that it’s not just their home or their neighborhood that has been hit so hard financially, it’s everyone. By that time, it’s often too late to take preventative action.
- The Self-Reliance Manifesto: More Than 300 Resources to Guide You on the Path to Radical Freedom
Self-Reliance. It’s a revolutionary word these days and I thought it deserved a manifesto. Have you happened to notice that our society is out of balance? The consumers outnumber the producers at such a rapid clip that we can’t possibly continue like this. But who has time to produce when they are indebted and working overtime to finance their current lifestyles in the hopes that they will finally be able to buy “enough” to be happy, fulfilled, and loved? We live in a society made up mostly of rabid consumers. As soon as the advertising pros on Madison Avenue point them in a given direction, people flock to it like the zombies on The Walking Dead lurch toward a fresh human, completely oblivious to everything else. They yearn for these things that are produced across the world and then delivered at a cheap price. They fill up on cheap food that has been government subsidized, making it unrealistically inexpensive. They are enslaved as they work to pay for it, or in some cases, accept a handout to pay for it. More people are deeply in debt than ever, living a fancy First World Lifestyle that would crumble with one missed paycheck. They are slaves and they don’t even know it.
- Why Did FEMA Just Put a Rush Order on 5 Million Bottles Of Water?
Sometimes, we can get a hint of things that are to come by watching what the government is doing to prepare. After all, their intel is way better than ours, and they do have a tendency to keep secrets. Of special interest to anyone who like to don the tinfoil and try to figure out what may be coming down the pipe are the actions of FEMA, the agency which is in charge of “managing” emergencies here in the US. So when they place a large order for something that they want absolutely immediately, I pay attention. A few days ago, FEMA put out a solicitation for 5 million bottles of water, to be delivered within 2 days. It said they had an “urgent requirement” for this water.
- Jumping Ship: Two Central Banks Just Printed Billions In Paper Currency… And Immediately Bought Gold Mining Stocks With It
When former Federal Reserve Chairman Ben Bernanke was questioned by Ron Paul during a 2011 monetary policy report, he famously told the Congressman that gold is not money and the only reason central banks hold it is because of “long-term tradition.” Bernanke’s comments have since been cited by financial pundits as expert advice on why precious metals investments should be considered no different than other traditional investments like equities or bonds. Suggesting they may be a safe haven asset or that there are thousands of years of evidence supporting the claim that gold and silver are money are often laughed at and marginalized. But if gold and silver are not real money and they are not safe haven assets, then why did the central banks of Switzerland and Norway just print $2 billion dollars in currency and immediately move that paper currency into gold mining companies?
- ALERT: U.S. CDC Giving Itself Unconstitutional POWERS To Round Up And Detain Citizens En Masse Anytime, Anywhere And Throw Away The Key
The U.S. Centers for Disease Control and Prevention literally has overstepped its authority in proposing to grant itself powers that obviously negate any rights U.S. citizens thought they had by issuing the Proposed Rule “Control of Communicable Diseases” on August 15, 2016 wherein CDC will self-invest itself with the power to apprehend healthy people en masse and detain them indefinitely with NO process of appeal! That mammoth proposed rule is published in the Federal Register [Federal Register Number: 2016-18103] online at this website. Before you read it, I suggest taking a very stiff shot of vodka or scotch, because you won’t believe what you read that is being proposed for what is supposed to be a non-communist country and its people, the USA! But, the CDC wants to hear your comments about the proposed rule, as if it really cares. Citizens should file your comments at this website before October 14, 2016! Officially, it’s Comment No. CDC-2016-0068-0001.
- Major Bank Official: Banks Are “Preparing for an Economic Nuclear Winter”
After years of giveaways to megabanks, marketed to the taxpayers as ‘quantitative easing,’ the crutches shoved under the banker-controlled global stock trade are about to snap. Bankers now say they are preparing for the collapse. In June of 2015, former Congressman Ron Paul predicted that these crutches would fail, and the financial bubbles created by them would send the stock market into a free fall.
- How Much Will Silver’s Value Increase Compared To Gold During The Next Financial Crash? Check Out These Charts
Many investors believe the value of silver will surge much higher in percentage terms compared to gold during the next financial and economic crash. I happen to belong to that savvy group of silver investors, and for good reason. If we look at the charts below, the data proves that silver bullion is certainly the more undervalued precious metal asset. Thus, it will likely make silver one of the best investment strategies of a lifetime…
- Economist Warns: “Physical Precious Metals Markets May Freeze Up- In A Buying Frenzy, $5,000 Gold Is A Conservative Estimate”
Wait until the physical market freezes up. I saw it once (1980)…I saw what happened with gold and silver when it was a panic buy… Economist David Morgan of The Morgan Report is one of the world’s best known silver investors. In the following interview with Future Money Trends Morgan discusses his personal experiences during the last major run-up in gold, when it hit a price of $850 in early 1980. As Morgan describes it, there was significant panic buying during that time period, and should central banks and governments continue on their current course, we’ll see a similar endgame play out this time around.
- Russia, China Building Yuan-Based Alliance Against Dollar
The yuan is nearing to become a true international currency. In October, the Chinese currency will be added by the International Monetary Fund (IMF) to its list of reserve financial instruments. A day before the Eastern Economic Forum 2016 started in Russia’s Vladivostok the Russian-Chinese Financial Council held a meeting to discuss boosting ties between Russian and Chinese financial organizations. Currently, the council comprises 27 Russian and 29 Chinese financial institutions. The council is aimed at facilitating transactions in capital markets and promoting payments in national currencies.
- The enemy is us.
Your government is on red alert: between 2006 and 2014, the Animal and Plant Health Inspection Service (APHIS), an agency of the Department of Agriculture, spent nearly $4.8 million to purchase shotguns, propane cannons, liquid explosives, pyro supplies, drones, thermal imaging cameras, and more. APHIS describes itself as “a multi-faceted Agency with a broad mission area that includes protecting and promoting U.S. agricultural health, administering the Animal Welfare Act, and carrying out wildlife damage management activities.” Liquid explosives and shotguns are apparently necessary to carry out its “broad mission.”
- Bill Holter: Newly Solidified Chinese Superpower Will Replace Dead U.S. Dollar
Will September 2016 be remembered as the month the dollar died? Yesterday, September 2nd on TRUNEWS, Rick Wiles was joined by financial writer Bill Holter to discuss the very real possibility that September 30th, 2016 might be the actual day the U.S. Dollar finally collapses, and then God help us all. During the interview, Bill Holter explains that Jim Rickards, world famous author of The Death of Money, and Currency Wars has predicted September 30th, 2016 will be the day, and he’s got his prediction narrowed down to the exact hour.
- US, China jointly ratify Paris climate accord
The United States has joined China to formally ratify the Paris agreement to curb climate-warming emissions, the world's two biggest economies said on Saturday (Sept 3), which could help put the pact into force before the end of the year. US President Barack Obama and Chinese President Xi Jinping submitted their plan to join the agreement to United Nations Secretary-General Ban Ki Moon, who is in China to witness the announcement. Senior Obama adviser Brian Deese said the joint declaration should push other countries to formally join the agreement. “The signal of the two large emitters taking this step together and taking it early, far earlier than people had anticipated a year ago, should give confidence to the global communities and to other countries that are working on their climate change plans, that they too can move quickly and will be part of a global effort,” Mr Deese told reporters on Friday.
- We’ve Reached the “Zero Point” of Debt Creation
Forty-five years and counting: We’ve been on a debt spree since the early 1970s when we went off the gold standard, covering every possible angle. Trade deficits, government deficits, unfunded entitlements, private debt – you name it! Our total debt has grown 2.5-times GDP since 1971. How could economists not see this as a problem? How is this the least bit sustainable? It isn’t. We’re hurtling toward a massive financial crisis, and all we have to show for it are financial asset bubbles destined to burst. And when they do, they’ll wipe out the artificial wealth they’ve created for many decades… in just a few years, as they did from late 1929 into late 1932!
- It Starts: Rents Drop in 10 of the Top 12 US Markets
The construction boom of apartment and condo buildings around the US, especially in high-priced metro areas on the East Coast and the West Coast, is now colliding with the reality of squeezed household incomes and soaring rents. As a consequence, in many of the hottest markets – including San Francisco, where the explosion in rents is called “The Housing Crisis” – rents have started to drop. Landlords are competing with a surge of new supply from new apartment and condo developments. Incentives, such as one month free rent, a rarity in hot markets like San Francisco, have reappeared. And in some of the neighborhoods with new apartment towers, the “now leasing” banners are everywhere.
- As 9-to-5 Jobs Vanish, Look Who’s Reinventing the Working World
Estelle Becker Costanzo has worked in Pittsburgh restaurants since age 15. Now 56, she is a server at The Capital Grille, a position she is proud of. “This is a good job,” she says—relative to the rest of the industry. Still, because her base wage has stayed put at $2.83 per hour for 25 years, she struggles to cover her basic expenses. “Originally, [tips] were supposed to be 50 percent of our income. Now it’s more like 100 percent.”
- California Just Passed A $1.7 Billion Tax On The Whole Country That No One Noticed
The California State Assembly recently passed a bill that received minimal recognition by the press, outside of the state, but has substantial negative consequences for basically everyone in the country. Once signed by Jerry Brown, the bill, known as AB 1066, will make California the only state in the entire country to provide overtime wages to ag workers after 8 hours a day or 40 hours per week. This change will add about $1.7BN annually to the cost of growing food in California which will ultimately be passed along to consumers. And since eating isn't really optional, this is effectively a $1.7BN tax that California has decided to levy on the entire country. Worse yet, increasing food prices is essentially the most regressive form of “tax” possible given the disproportionate share of wages spent on food by low-income families. And, while you may not know it, California is an agricultural powerhouse that produces roughly 1/3 of all vegetables consumed in this country and 2/3s of the fruits and nuts.
- Fewest Stocks Traded In 32 Years – The Market Is Disappearing In One Giant Leveraged Buyout
The number of common stocks traded on major U.S. exchanges are the fewest in three decades. As CNBC reports, “Currently, there are just 3,267 stocks in the University of Chicago's CRSP data, and this is the lowest since 1984,” wrote longtime Jefferies equity strategist Steven DeSanctis.
- Et Tu Austria – 3rd European Nation Abandons TTIP Trade Deal
In our coverage on the slow death of TTIP we focused on Germany and France. We are now hearing that the Austrian SPÖ, the majority partner in the governing grand coalition, is also opposed – and not only to TTIP but also to the CETA deal with Canada. Der Standard quotes Chancellor Christian Kern as questioning CETA just after vice-chancellor Reinhold Mitterlehner from the ÖVP, the centre right coalition partner, questioned TTIP.
- Retired Green Beret Warns: “World Governments Are Preparing For Disaster And War”
As written in previous articles, it is my firm conviction that we will be involved in a World War that will be initiated by an Electromagnetic Pulse (EMP) weapon detonated over the continental United States. That being said, this piece summarizes recent events that reinforce such a conclusion, a conviction that is shared by world leaders, senior military personnel, and prominent analysts, as well as being a general consensus of opinion worldwide. As of this writing, the German government has instructed its citizens to prepare for a forthcoming disaster by stockpiling at least 10 days-worth of food and 5 days of water. In Berlin, they are considering bringing back mandatory conscription (a draft) in view of the influx of Muslim aliens entering Europe. This concern is mirrored by Hungary and the Czech Republic who, in light of an influx of more than a million Muslims entering Europe are calling for an army in Europe representing the EU to be able to deal with this crisis affecting their borders.
- “Tremendous Ripple Effects” – Retailers Demand Bailout After Hanjin Collapse Paralyzes Trade
When we first reported about the imminent paralysis of an unknown number of global supply chains and a potential shock in worldwide trade as a result of the historic bankruptcy of Hanjing Shipping, one of the world's largest container shipping companies which handles 8% of Trans-Pacific trade volume for the US market, we concluded that “the global implications from the bankruptcy are unknown: if, as expected, the company's ships remain “frozen” and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos. The good news is that both economists and corporations around the globe, both those impacted and others, will now have yet another excuse on which to blame the “unexpected” slowdown in both profits and economic growth in the third quarter.”
- Physical Gold Delivery Failure By German Banks
The physical gold delivery failure to clients of Deutsche Bank who own Xetra-Gold, the gold exchange traded commodity, was confirmed yesterday by Deutsche Bourse who said that the inability to deliver gold was not limited to Deutsche Bank and that other German banks were having “problems” delivering gold.
- One Firm Is Calling For Skyrocketing Gold, Silver & Oil And A Crash In The Dow!
As we get ready to what should be a very exciting fall, one firm is calling for skyrocketing gold, silver & oil and a 7,000 point plunge in the Dow! “My fear is that because interest rates are suppressed, therefore earnings are inflated. So when rates go up … the hall of mirrors is shattered and we look at each other and see what actually is real rather than what the Fed wants us to believe.” — Jim Grant By Ronald-Peter Stoeferle, Incrementum AG Liechtenstein – Value judgments are subjective. Particularly in the valuation of investment assets, expectations about the future play a crucial role. One of the perhaps best known and quite informative ratios is the Dow/gold ratio…
- Is This About To Radically Change The World Forever?
As we await the release of the U.S. jobs report on Friday, in order to see which direction it sends markets hurtling, is this new technology about to radically change the world forever? By Gerald Celente, Trends Research Institute. Anyone who’s conversed with Apple’s Siri or Microsoft’s Cortana has made friends with a chatbot. A chatbot is a form of artificial intelligence that responds in a conversational manner, in print or verbally, to questions or requests from people: “Where’s the nearest McDonald’s?” or “Call Doug.”…
- Legend Issues Dire Warning About Deutsche Bank’s Failure To Deliver Gold
The man who, unbelievably, predicted the collapse of the euro against the Swiss franc in 2015, today sent King World News a brief note about Deutsche Bank’s failure to deliver gold and issued a dire warning. Deutsche Bank & Germany To Collapse? Egon von Greyerz: “The Deutsche Bank situation is not new and I have talked about it many times as you know. Deutsche Bank is bankrupt, but you must realize that they are an institution, and therefore the German government will not let Deutsche Bank fail before the country fails. Both of these events will of course happen, but not yet.” King World News will have more coverage of the Deutsche Bank situation shortly…
- Trump Immigration Policy Update, MSM Lies for Hillary, Economic Update
Donald Trump had a fantastic week that included a surprise trip to Mexico to talk with the President of Mexico. After that, Trump flew to Phoenix to give a 10 point immigration policy speech that went over big. Of course, if you watch the mainstream media (MSM), Trump was a total disaster, but don’t believe the liars employed by legacy media. The MSM lies and are freaking out that Trump could pull off a win despite their biased political spin.
- America You Need To Lose Weight: At Least 1 Out Of Every 5 People Are Obese In All 50 States
The United States officially has an obesity crisis. According to a brand new report that was just released by the Trust for America’s Health, at least one out of every five people meet the clinical definition for obesity in all 50 states. But of course in some states things are far worse than that. More than 35 percent of all adults are obese in four states, and the obesity rate is between 30 and 35 percent in 21 other states. And it is important to keep in mind that just needing to lose weight does not mean that you are obese. According to the CDC, you have got to have a body mass index of at least 30.0 to meet the clinical definition for obesity. Each year, the American people spend 60 billion dollars on weight loss programs and products. That breaks down to about 188 dollars for every man, woman and child in the country. We are a nation that is absolutely obsessed with losing weight, and yet obesity levels are hovering near all-time record highs.
- Global Recession? The Canadian Economy Shrinks At The Fastest Pace Since The Last Financial Crisis
Things have not been this bad for the Canadian economy since the last global recession. During the second quarter of 2016, Canada’s GDP contracted at a 1.6 percent annualized rate. That was the worst number in seven years, and it was even worse than most analysts were projecting. This comes at a time when bad news is pouring in from all corners of the global economy. While things in the United States are still relatively stable for the moment, the same cannot be said for much of the rest of the planet. Canada in particular has been hit very hard by the collapse in oil prices, and the massive wildfire in northern Alberta back in May certainly did not help things.
- A Timetable for the Dollar’s Demise
The next five weeks will mark one of the most significant transformations in the international monetary system in over 30 years. Since the dollar is still the lynchpin of this system, the dollar itself will be affected. Whatever affects the dollar affects you, your portfolio and your personal financial security. It is vital to understand the changes underway in order to protect your net worth, and even prosper in the coming transition. Such radical transformations of the international monetary system have happened many times before, including the dual “accords” of the 1980s. These were the Plaza Accord in 1985, and the Louvre Accord in 1987 — named respectively after the Plaza Hotel in New York, and the Louvre Museum in Paris where the key meetings took place.
- Drudge: ‘HOMELAND SECURITY TO TAKE CHARGE OF ELECTIONS’
Why does the Department of Homeland Security all of a sudden want to oversee security for the election in November? Just a little while ago I checked the Drudge Report, and I was greeted by the following headline all in red: “HOMELAND SECURITY TO TAKE CHARGE OF ELECTIONS”. I was immediately alarmed, because I had already heard about how local election databases had been hacked, and Donald Trump has expressed concern that the presidential election in November could be rigged somehow. So I immediately clicked on the link and it took me to an article from the Washington Examiner…
- Canada signals intent to join China-led bank
Justin Trudeau has officially submitted Canada's application to join a controversial new international infrastructure bank led by China — an initiative the Asian country hopes will help build its economic credibility around the world. China founded the US$100-billion Asian Infrastructure Investment Bank late last year to provide other countries in the region access to capital for investments in projects in areas such as transportation, power and telecommunications. The Canadian government made the announcement after Trudeau met with Chinese Premier Li Keqiang on Wednesday in Beijing, but did not immediately specify how much money it would put into the new bank. The government said in a statement that joining the bank will help Canada further engage in multilateral infrastructure efforts, and help pave the way for Canadian companies looking for new business opportunities. Trudeau hinted on Tuesday that Canada's application had been in the works.
- Norway Raids Sovereign Wealth Fund To Cover Government Expenses
Saudi Arabia isn't the only oil-dependent nation struggling to make ends meet in the wake of weak oil prices. For the first time since its establishment in 1996, the Norwegian government is starting to withdraw money from its sovereign wealth fund to cover government expenses. In fact, in the first half of 2016 the government has withdrawn $5.4 billion. Moreover, withdrawals are expected to accelerate in 2H 2016 reaching nearly $20 billion, a run-rate that would have them exceeding the fiscal limits imposed on fund withdrawals of 4% of assets, or $36 billion. To put those withdrawals into perspective, Norway's economy is roughly $375 billion and federal spending accounts for roughly 60% or $225BN. Therefore, a $20BN withdrawal in 2H 2016 represents roughly 18% of total government spending.
- Hoarding Cash – Prelude to the Crash & Burn
We are monitoring confidence in the banking system as reflected by cash withdrawals. The sale of home safes has exploded in many countries. I previously reported that one in ten currency notes in Switzerland being printed is now the 1000 franc note. In fact, there is some 41.6 billion in Swiss francs now in circulation in 1000 CHF notes exclusively. The ECB is truly brain-dead for they thought by moving with negative interest rates, people would spend their money and that would rekindle inflation. They are correct that people would not want to pay negative interest rates. However, they totally never guessed that they would withdraw their money and hoard it rather than spend it. The trend toward hoarding cash really became in 2011. It started to make the news in 2012. Now the German savers are buying home safes as well and pulling out cash. Of course, they attribute this primarily to negative rates. However, the concerns that Deutsche Bank may be in serious trouble is also helping matters.
- G20 Summit to tackle rise in anti-globalization
The G20 Summit is to take place amid weak economic recovery and the lowest rate of global trade growth in three decades. China would like to see G20 leaders resist protectionism and instead, seek economic growth through innovation and reform. CCTV’s reporter spoke to some of China’s brightest business leaders to hear their proposals to G20 leaders. “Globalization is nothing wrong. But we need to perfect it,” said Jack Ma, Alibaba founder & CEO. Alibaba founder Jack Ma is deeply concerned about the rising anti-globalization sentiment around the world.
- Deutsche Bank Refuses Delivery Of Physical Gold Upon Demand
While the trading world was focused on the latest news involving Deutsche Bank, namely that the troubled German bank had been contemplating a merger with Germany's other mega-bank, Commerzbank as part of a strategy to sell all or part of a key business to speed up its flagging overhaul, a more troubling report emerged in a German gold analysis website, according to which Deutsche Bank was unable to satisfy a gold delivery request when asked to do so by a client of Germany's Xetra-Gold service. But first, what is Xetra-Gold? According to its website, the publicly traded company “provides investors with an efficient instrument to participate in the performance of the gold market. Xetra-Gold’s combination of features – cost-efficient trading and the right for physical delivery of gold – makes it an attractive product.”
- Pound jumps as UK manufacturing posts joint biggest rebound in 25 years
UK manufacturing activity rebounded at the joint-fastest pace in a quarter of a century in August amid a jump in output and new orders as the initial shock of the Brexit vote faded. Sterling rose after Markit's latest survey of the sector showed factories were returning to “business as usual” following a steep downturn in activity immediately after the June 23 poll. Markit said the fall in the value of the pound triggered by the referendum result had helped to push up overseas orders, while domestic output also bounced back and employment rose for the first time this year.
- 68% of companies paid no corporation tax in 2014
There have been calls for a rethink on corporation tax policy after official figures show that no corporation tax was collected on almost €17 billion worth of earnings by Irish registered companies over a five year period.
- Goldman Sachs: Brazil’s Economic Depression Could Take 5+ Years to Correct
Brazil’s stock market has surged this year, despite spiking unemployment and a several-year-long economic depression. A Goldman Sachs analyst now notes there’s no real improvement in sight.
- China Sees “Great Difficulties” in Meeting Economic Growth Targets
Based on a supply-side estimate of potential growth and projections of the main components of demand, Bloomberg’s Chief Economist Tom Orlik notes that China potential growth – the rate at which the economy could expand when firing on all cylinders – will slow to 7.1% in 2016 and 7.0% in 2017 from 7.3% in 2015. The government’s growth target for 2016 is 6.5-7% and – based on the 13th Five Year Plan – a minimum of 6.5% from 2016-2020.
- Canada’s GDP Plunges 1.6% in Q2, Worst Reading in Seven Years
From Michael Snyder: Things have not been this bad for the Canadian economy since the last global recession. During the second quarter of 2016, Canada’s GDP contracted at a 1.6 percent annualized rate.
- Could This Earnings Recession Signal 1987-Style Market Crash?
As earnings go, so goes the market. That’s the way things are supposed to work, anyway. Except that right now, they clearly don’t. Jim Bianco, president of Bianco Research argues that even [current tepid earnings forecasts] might be overly optimistic. In a research note to clients Monday, he pointed to data that shows that companies have been consistently cutting their estimates for future earnings as the close of the quarter in question nears.
- The Central Banks Are Now Ready To Launch Their ‘Brave New World'
The latest Federal Reserve meeting in Jackson Hole, Wyoming, is over and so far it would seem that the general investment world is not too happy about Janet Yellen’s statements as well as those of other Fed officials. In fact, many people are looking for some simple clarity as to what the central bank is actually planning. Most importantly, investors want to know why the Fed is suddenly so adamant about continued interest rate hikes in 2016. Only a couple months ago, almost everyone (including alternative economic analysts) was arguing that the Fed would “never dare” to raise rates again so soon, and that there was no chance of a rate hike so close to the presidential elections. Instead, investors have been greeted with surging rate-hike odds as Fed officials openly hint of another boost, probably in September. As I have been saying for years, if you think the Fed’s motivation is to protect or prolong the U.S. economy, then you will never understand why they do the things that they do. Only when people are willing to accept the reality that the Fed’s job is to undermine the U.S. economy can they grasp central bank behavior.
- Chris Christie Did The Right Thing By Vetoing a $15 Minimum Wage
Chris Christie, the Governor of the perennial blue state of NJ, is not someone who normally comes to mind when one thinks of free markets and liberty, but credit must be given when it's due. This week, Christie vetoed a bill pushed by the NJ legislature for a $15 minimum wage. This was a heroic act that should please every poor, low-skilled individual in the Garden State. Their chances of gaining employment have been greatly increased. Now if only the total elimination of the minimum wage were on the table…But alas, that day still lies in the future. For now, the cause of liberty and voluntary contracts can celebrate this token victory. The government has no right to stick its nose in other people's business. Contracts should always be voluntarily made without a third-party bullying its way in and messing everything up.
- Tractor for Modern Farm Features Everything But the Farmer
As Detroit car makers and Silicon Valley tech giants vie to bring driverless cars to U.S. roads, one of the world’s largest tractor makers is looking to do the same down on the farm. Case IH, the agricultural-machinery unit of CNH Industrial NV, this week unveiled a sleek, aggressive-looking red-and-black machine at the annual Farm Progress Show in Boone, Iowa.
- QE, End of the Private Sector? Japanese Government Now Largest Shareholder of 474 Big Companies
The Bank of Japan and the Government Pension Investment Fund (GPIF) have been buying stocks to inflate the market, create some kind of “wealth effect,” and bamboozle regular Japanese into pouring once again into stocks, after many of them lost a big chunk of their savings when the prior bubble imploded without ever recovering. In 2014, the GPIF – buckling under the pressure from the Abe administration – decided to plow about 25% (“±9%”) of its assets into Japanese stocks. With assets at the time of still about $1.4 trillion, 25% would amount to about $350 billion. So the fund has been buying a lot! And it has been a disaster!
- What Rail Freight Volume just Said about China
The Chinese government is getting nervous about the numbers and is insisting, top-down, on obtaining economic growth of 6.5% to 7% this year, one way or the other. China’s cabinet has sent inspectors fanning out to provinces across the country to “keep economic growth within a reasonable range and ensure the main objectives and tasks of this year’s economic and social development will be completed,” according to Xinhua news agency, cited by Reuters. Because, apparently not all of China was playing along. Some regions and government departments are not coordinating their policies well and some officials are lazy in their work, Xinhua said.
- Worst Plunge in Canada’s GDP since 2009
In the second quarter, Canada’s economic activity, as measured by inflation-adjusted GDP, fell 0.4% from the first quarter, or 1.6% annualized, “the largest decline in quarterly GDP since the second quarter of 2009,” as Statistics Canada put it in its data release. It was a brutal reversal of the first quarter, when GDP had jumped an upwardly revised 2.5% annualized. Canada’s economy is to a considerable extent dependent on its resource sector, particularly oil and gas. But since mid-February, prices of crude oil, a crucial export product, soared (with the US benchmark grade WTI up over 80%!). Given the soaring oil prices in the quarter, it’s even more unnerving that exports, which add to GDP, plunged 4.5% (nearly 20% annualized!), the worst plunge since Q2 2009. While exports of services edged up 0.6%, exports of good plunged 5.5%.
- Prominent European Firm Issues A Nearly $60 Target For The Price Of Silver!
As we come to the end of what has been a wild summer, this firm has issued a nearly $60 target for the price of silver. By Ronald-Peter Stoeferle, Incrementum AG Liechtenstein – Valuations are always subjective. They are in the eye of the beholder and often vary considerably. Objective factors, such as production costs are entirely irrelevant for valuations. The market value of a masterwork painted by Vincent van Gogh is significantly higher than its production costs, and a glass of water will be valued quite differently in the middle of a desert than on the shore of a lake. Last year we decided to set a time horizon of three years – i.e. to June 2018 – for our long term price target of $2,300 to be reached. This is based on the premise that the trend of price inflation is going to turn up…
- Former Soros Associate Says The ‘Fix’ Is In
As we get ready to enter September, a former associate of George Soros says the “fix” is in. Victor Sperandeo manages over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say. Eric King: “Victor, where is the gold market after what has been a powerful up-move so far this year?” Victor Sperandeo: “Most of the gold and silver mining stocks went straight up. They performed incredibly well and so they got overbought. So did gold, but not as much…
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