ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jul 17 12:06

13,400 of Chicago’s Homeless Had Jobs in 2017, 18,000 Had a College Education

By Emma Fiala

A report published on Tuesday by the Chicago Coalition for the Homeless, revealed that 13,400 of the city’s homeless population had jobs in 2017 while another 18,000 had a college education. The report challenges long held stereotypes concerning the homeless that include the false idea that anyone with a steady job or college education is immune from one of life’s most difficult experiences...

Jul 17 11:23

The Recession Is Now w/ David Haggith

Jul 17 09:44

Expert Predictions: A 70% Stock Market Crash

Jul 17 08:54

US, Iran Send Conflicting Signals on Possible Missile Talks

Secretary of State Mike Pompeo has claimed that Iran has signaled a willingness to negotiate on the matter of ballistic missiles. Other US officials aren’t so sure, and Iranian officials are also telling conflicting stories on the matter.

“Iran’s missiles are absolutely and under no condition negotiable with anyone or any country,” insisted Alireza Miryousefi, the spokesman for Iran’s UN Mission. That is certainly the position Ayatollah Ali Khamenei has long taken.

Yet Pompeo’s belief that talks are possible didn’t come out of thin air. Rather, Foreign Minister Javad Zarif suggested in the US was willing to cut off arms sales to Saudi Arabia and the United Arab Emirates, Iran’s missiles might also be up for negotiation.

That’s probably a non-starter,with President Trump so obsessed with growing arms sales, but does point to a grand bargain potentially being on the table, if both sides want it. The problem is, neither side is being very clear if they want it or not.

Webmaster's Commentary: 

Any possibility of a real deal, will most likely be scotched by Pompeo and Bolton, who both would rather see the US at war with Iran for Israel, than any move toward accommodation and threat-reduction.

And there is is something both gentlemen are really good at not seeing; this is The "Russian Option", and made very clear through the announcement of one top Russian official a couple of weeks ago: Zamir Kabulov: the Foreign Ministry’s special envoy for Asian countries including Iran, has said that Iran will not be alone, if the US attacks it.

Jul 17 08:46

The Dollar, Not Crypto, Is a National Security Issue

By Peter C. Earle

Everything that Mnuchin attributed to Bitcoin — for one thing, that it has been used in concert with such “illicit activity [as] cyber crime, tax evasion, extortion … illicit drugs, and human trafficking” — can be said, and to degrees an order of magnitude or more larger, about the U.S. dollar. It’s an argument suitable for children...

Jul 17 08:35

India Says It's Working with Russia on De-Dollarisation of Bilateral Trade

New Delhi (Sputnik): India says it is working with Russia to overcome payment issues for its strategic imports from that country. Deputy National Security Advisor of India, Ambassador Pankaj Saran said both sides are working on rupee-rouble trade to overcome a crisis caused by US financial sanctions.

Addressing the Second India-Russia Strategic Economic Dialogue in New Delhi on Wednesday, Ambassador Saran said this would help overcome India’s adverse balance of trade with Russia.

“As part of the trading environment, there have been talks about trade in national currencies. This again is still a work in progress and we need to see how we can operationalise and move forward on this idea, because increasingly we see many countries in the world are taking recourse to trading in their own respective currencies", said Ambassador Saran.

Webmaster's Commentary: 

One has to wonder if President Trump understands, to any possible degree, how much these sanctions are hurting - and will hurt - US businesses?!?

Jul 17 08:34

U.S. Manufacturing Is Officially In Recession

By Mac Slavo

The manufacturing industry in the United States has officially sunk into a recession. The once-booming industry is struggling to stay alive amid the trade war as production slumped in the second quarter...

Jul 17 08:29

Venezuela may switch from SWIFT to Russian payment system to skirt US sanctions – report

Venezuela is considering using the Russian alternative to the traditional SWIFT international payment system, as the country braces for new US sanctions that could further weaken its financial sector, according to Bloomberg.

Venezuela’s central bank has sent a request on the matter to the Central Bank of Russia (CBR) as the regulator’s approval is necessary if Caracas wants to use the payment platform, the report said, citing sources. However, neither of the sides involved, nor the world’s largest payment system, SWIFT, has commented on the report.

Jul 17 08:29

Marching to a Federal Debt Crisis - Cato

Jul 17 08:27

Russia solving America's debt problem... by dumping US Treasury securities

Once a top investor with over $170 billion in US Treasury bills, Russia continued reducing its holdings of US debt in May to almost $12 billion, according to recent data published by the US Treasury Department.

Russia’s stockpile of Treasury bills fell by more than $100 million in one month to $12.024 billion, $5.25 bn of which is in long-term securities.

Moscow accelerated dumping US debt last year, when it reduced its holdings by more than 85 percent, from $96.9 billion in January to $13.2 billion in December. The biggest reduction came it April and May, when the country reduced its stockpile by around $81 billion.

The selloff is even more dramatic since 2010, when Russia held US Treasury bonds worth over $170 billion.

Jul 17 08:14

The Rise of Insanity

Jul 17 07:16

JUDGE REDUCES SONOMA CO. MAN'S $80 MILLION AWARD FROM MONSANTO TO $25 MILLION

A federal judge in San Francisco on Monday reduced an $80 million award levied against Monsanto Co. to $25 million for a Sonoma County man who claimed the company's Roundup weedkiller caused his non-Hodgkins' lymphoma.

U.S. District Judge Vince Chhabria upheld a jury award of approximately $5 million in compensatory damages to Edwin Hardeman, 70, of Santa Rosa, but said that guidelines in a 2013 Supreme Court decision required him to reduce the jury's $75 million in punitive damages to $20 million.

The ruling leaves Hardeman's total award at $25,267,634. His case was the first to go to trial of more than 1,000 federal lawsuits against Monsanto nationwide.

Webmaster's Commentary: 

A federal judge in San Francisco on Monday reduced an $80 million award levied against Monsanto Co. to $25 million for a Sonoma County man who claimed the company's Roundup weedkiller caused his non-Hodgkins' lymphoma.

U.S. District Judge Vince Chhabria upheld a jury award of approximately $5 million in compensatory damages to Edwin Hardeman, 70, of Santa Rosa, but said that guidelines in a 2013 Supreme Court decision required him to reduce the jury's $75 million in punitive damages to $20 million.

The ruling leaves Hardeman's total award at $25,267,634. His case was the first to go to trial of more than 1,000 federal lawsuits against Monsanto nationwide.

The US Supreme Court ruling indicated that the damages could not be placed at over 9/1; but why?!? This ruling rather puzzles me, as it doesn't leave a lot of room for legitimate victims' claims.

Jul 17 05:39

EU Launches Amazon Anti-Trust Probe

Now that the EU's anti-trust regulator is finished fining the bejeezus out of Alphabet, the European Commission is turning its attention to another American tech giant: Amazon.

The e-commerce giant is facing a formal EU anti-trust probe over its treatment of third-party merchants on its platform, a premise that doesn't sound all that different from the EU's investigation into Google's AdSense advertising business (the EU hit Google with three multi-billion anti-trust fines over the past few years). In addition to the Amazon probe, the EU is also juggling investigations into Facebook, Apple and Twitter over violations of the EU's new GDPR privacy laws.

According to WSJ, Amazon is suspected of "abusing its dual role as both the provider of a marketplace where independent sellers can offer products and a retailer of products in its own right." In particular, the probe will explore whether "Amazon is using sensitive data from independent merchants to compete against them."

Webmaster's Commentary: 

It is also very possible, that Google picked the absolutely wrong President to deplatform, as it has done for so many sites supporting President Trump.

Jul 17 05:29

Why does the global economy need rescuing after 10 years of non stop monetary stimulus?

Why does the global economy need rescuing after 10 years of non stop monetary stimulus?

I also have an answer and it’s an unpleasant one. Because by bailing out markets and economies at every sign of trouble over the past 10 years central banks have given politicians license to do nothing. And nothing is what you get as political discourse fragments and majority solutions are impossible to come by.

But not only are majority solution impossible to get nobody even wants to even talk about them. Why? Because they involve pain. Voters don’t want to hear pain. Hence all you hear is free money. Tax cuts in 2016. Now we hear free college, health care and debt forgiveness for 2020 and who knows maybe more tax cuts.

Nobody wants to campaign on pain. I get it. But does anyone really think solving the structural problems that are behind slowing growth after 10 years of monetary stimulus are easily solvable?

Jul 16 16:34

Federal Debt Ceiling Reached As Federal Spending Rages

The federal government will soon run up against its self-imposed borrowing cap once again. Current estimates are for the government to max out its credit limit at a little over $22 trillion in early September. Congress goes on recess in August, so there is some pressure to address the cap right now.

Jul 16 15:18

Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

There is a reason James Simons' RenTec is the world's best performing hedge fund - it spots trends (even if they are glaringly obvious) well ahead of almost everyone else, and certainly long before the consensus.

That's what happened with Deutsche Bank, when as we reported two weeks ago, the quant fund pulled its cash from Deutsche Bank as a result of soaring counterparty risk, just days before the full - and to many, devastating - extent of the German lender's historic restructuring was disclosed, and would result in a bank that is radically different from what Deutsche Bank was previously (see "The Deutsche Bank As You Know It Is No More").

Webmaster's Commentary: 

This is going to have a domino effect on other major banks, and most probably very soon.

Jul 16 13:28

Junk Bonds Are Ringing A Bell

Jul 16 12:36

A Top is Forming… Is is THE Top?

Jul 16 12:22

How negative can interest-rates go?

Jul 16 11:48

PATRICK LAWRENCE: Weaponizing the Dollar

The signs are mounting steadily now. As the Trump administration weaponizes the dollar in defense of American hegemony, it is prompting many other nations to find alternatives to the U.S. currency as the default medium of exchange. The long-term implications of this swiftly advancing trend, evident among allies as well as those Washington considers adversaries, cannot be overstated: At stake is the longevity of America’s global preeminence.

The just-concluded Group of 20 session in Osaka, Japan, was a dramatic demonstration of how quickly “de-dollarization” efforts are coalescing. And the pattern could not be clearer: The Trump administration’s incessant use of unilateral economic and financial sanctions against perceived enemies, which is almost certainly without precedent, is high among the reasons these efforts now gather momentum at a pace few in the financial markets or in official circles anticipated.

Jul 16 11:31

Apparently, It’s 2017 Again

Jul 16 11:31

Why Does the US Transit System Have a $100 Billion Maintenance Backlog?

By Chris Edwards

The federal government spends $14 billion a year on subsidies for local rail and bus transit. This spending should be zeroed out in the next federal transportation bill because it induces cities to own and run monopoly transit systems that are unionized and mismanaged.

Federal transit aid has mainly covered capital costs, not operations and maintenance. That has encouraged cities to purchase rail systems with big up-front costs, rather than cheaper, safer, and more flexible bus systems...

Jul 16 11:30

Could A Deutsche Bank Collapse Crash The Markets?

“I don’t think it’s any coincidence that gold runs from $1285 to as high as $1445 around the time that all the news about Deutsche Bank started coming out” [the failure to merge with Commerzbank followed by the “good bank / bad bank” split announcement].

It was reported by Bloomberg that Deutsche Bank clients – mostly hedge funds – are pulling $1 billion in capital per day from the collapsing bank. Still no details have emerged on the how the “bad bank” holding company will be funded or what will go into it. What we do know is the original proposal for a bad bank was for $43 billion in bad assets. That number has bubbled up to a proposed $74 billion. In truth, no one knows for sure the degree to which DB’s derivatives holdings are radioactive. Disgraced former CEO, Anshu Jain, admitted that near the end of his failed tenure.

Jul 16 10:32

The United Nations Agendas: A Totalitarian Map

Op-Ed by Rosanne Lindsay, Naturopath

If you connected all the dots to the various United Nations (U.N.) Agendas, would you create a map of mass regionalization and an eventual Totalitarian State?

Let us count the ways…

Jul 16 10:05

Why Is This Not Another 2015 Soft Landing?

Jul 16 09:54

For those who "can't see the recession"...

Jul 16 07:10

Finance Costs Are Killing The Shale Industry

Jul 15 18:53

New Multi-year Gold Rally Has Emerged

Jul 15 16:57

India & Russia will use their national currencies for defense deals to bypass US sanctions – report

Russia and one of the biggest importers of its weapons, India, have decided to use their national currencies to transfer payments for massive defense deals in order to skirt possible US sanctions, according to Bloomberg.

Jul 15 16:17

The U.S. (and Global) Economy Is In Trouble

Jul 15 16:16

California Committee Approves Measure to Create Banking Alternative for Cannabis Industry, Bypass Federal Reserve

By Michael Maharrey

Last week, a second California Assembly committee unanimously passed a bill that would establish limited state-chartered banks to serve the cannabis industry. Final passage of this legislation would remove a major federal roadblock in front of the developing industry in the state and further nullify federal prohibition in practice.

Sen. Bob Hertzberg, (D-Van Nuys), along with a bipartisan coalition of eight cosponsors, filed Senate Bill 51 (SB51) on Dec. 4. The legislation would create a self-contained banking system for the cannabis industry in California...

Jul 15 15:25

One Heck Of A Recession Party!!

Jul 15 14:59

Knowing the “Value” of Our Data Won’t Fix Our Privacy Problems

By Hayley Tsukayama

Some lawmakers, seeking to hold companies accountable for the way they collect and profit from our personal information, are pushing a new idea: requiring companies to report a dollar value for the data they collect from us. Some frame this reporting as a first step towards requiring companies to share with consumers the wealth our personal information generates for these companies. Yet knowing how much your personal information is worth to a company doesn’t actually protect your privacy—and the “pay for privacy” schemes that would probably follow from valuation reporting would actually harm it...

Jul 15 14:38

Congress Courageously Sticks US Taxpayers With a $6 Trillion Liability

By Simon Black

The names of these laws all sounded wonderful. But their effects were absolutely terrible.

The new SECURE Act will likely be no different.

If you haven’t heard of SECURE, it’s a new piece of legislation aimed at ‘fixing’ the US retirement system...

Jul 15 12:22

Treasury Secretary Confirms US Risks Defaulting On Its $22 Trillion Debt in as Little as Two Months

Last week, a Washington-based think tank warned of "potentially devastating economic consequences" for the US and global economies if Congress didn't pass a debt limit extension in the weeks to come.

Treasury Secretary Steve Mnuchin has confirmed that the US could default on its obligations in as little as two months if emergency measures are not taken.

"Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes," Mnuchin warned, in a letter addressed to Democratic House Speaker Nancy Pelosi obtained by CNBC.

Jul 15 10:59

GOP struggles to find backup plan for avoiding debt default

Republicans are in the dark about their party's backup plan for raising the debt ceiling amid growing anxiety that they will need to do so in a matter of weeks.

Leadership wants to attach an increase in the nation’s borrowing limit to a budget deal, which would let them consolidate two tough political votes. But while Congress has until January to avoid deep budget cuts, it appears increasingly likely it will have to vote to raise the debt ceiling before leaving for the August recess.

Underscoring the urgency, Treasury Secretary Steven Mnuchin sent letters to congressional leadership Friday requesting Congress vote before the recess, after first indicating to reporters that it was his “preference” lawmakers act this month.

Jul 15 10:18

Chevron Has Spilled 800,000 Gallons of Crude Oil and Water Into a California Canyon Since May

By Olivia Rosane, EcoWatch

California officials ordered Chevron Friday “to take all measures” to stop a release that has spilled around 800,000 gallons of water and crude oil into a dry creek bed in Kern County, KQED reported.

The order, issued by the new acting head of the state’s Division of Oil, Gas and Geothermal Resources (DOGGR) Jason Marshall, also said the fossil fuel company had not done enough to stop the spills that had begun May 10...

Jul 15 09:15

Federal Debt Ceiling Reached asFederal Spending Rages

The federal government will soon run up against its self-imposed borrowing cap once again.

Current estimates are for the government to max out its credit limit at a little over $22 trillion in early September. Congress goes on recess in August, so there is some pressure to address the cap right now.

Webmaster's Commentary: 

And the politicians will pose and posture and act like they are concerned .... then raise the cap again.

Jul 15 08:04

Things could get very ugly for world economy

Jul 15 07:50

How Overheated Is The Stock Market?

Jul 14 13:56

Why the upcoming economic crisis maybe worse than the 08

1) Yield curve inversion has lasted more than 3 months. A downturn is evident. We only have only about two years (max and i think that is generous) from the start of the point of inversion.
2) Right now the market is addicted to cheap money, like an addict would be to heroin. This has been going on for a decade. Business are over-levered and borrowed and they are addicted to those low interests rates.
3) Many Americans are in their eyeballs in debt

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