May 29

Baltimore-Riot-Police-1

Baltimore Has Descended Into A State Of Lawlessness – And More Cities Will Soon Follow (Economic Collapse, May 28, 2015):

Did you really think that Baltimore would return to normal after everything that has happened?  On Thursday, a mother and her 7-year-old son were both shot in the head in a double murder that has shocked the entire nation.  Police believe that the son may have been shot in order to prevent him from identifying the individual that shot his mother.  So is this what America is turning into?  A place where 7-year-old kids are executed in cold blood?  That mother and son were the 37th and 38th murder victims in the city of Baltimore so far this month.  That makes this the deadliest month in Baltimore in 15 years, but because of all the controversy surrounding the death of Freddie Gray, police in Baltimore are afraid to do their jobs at this point.  In some areas of the city, young men boldly smoke weed in public and wave guns around at innocent bystanders without any worry that police will intervene.  Baltimore has descended into a state of lawlessness, and this is just the beginning.  As I discussed just the other day, the same kind of lawlessness will soon sweep all across this country. Continue reading »

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May 29

From the article:

What is disturbing is that as noted before, inventories contributed the biggest component of Q1 GDP growth, adding $106 billion in nominal “growth.” Without that contribution, annualized GDP would have been worse than -3%!

In short: welcome to the recession, which however will soon be double seasonally adjusted into another flourishing, of only stiatistically, “recovery.”


“Welcome To The Contraction”: Q1 GDP Drops By 0.7%, Corporate Profits Crash (ZeroHedge, May 29, 2015):

And you thought the preliminary 0.2% Q1 GDP print from last month was bad. Moments ago, just as we warned, the BEA released its latest, first, revision of Q1 GDP (pre second-seasonal adjustments of course), and we just got confirmation that for the third time in the past four years, the US economy suffered a quarterly contraction, with the Q1 GDP revised drastically from a 0.2% growth to a drop of -0.7%: the worst print since snow struck, so very unexpectedly, last winter.

US Q1 GDP

Incidentally, there has not been a US “expansion” with three negative quarters in it in the past 60 years. Continue reading »

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May 29

H/t reader squodgy:

“Aren’t they just lovely?

There is just no hope for the human race.”



27.05.2015

Description:

For IN the NOW with Anissa Naouai, The Resident goes to Times Square to discuss the implications of the TPP on the world. Unfortunately, she was able to find exactly zero people who even had heard of the TPP, let alone could discuss the ramifications of it.

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May 29

BRICS-1

De-Dollarization Du Jour: Russia Backs BRICS Alternative To SWIFT (ZeroHedge, May 29, 2015):

Back in February, Russia detailed a SWIFT alternative that would link 91 domestic banks to the Central Bank of Russia.

On the one hand, the plan represented yet another move towards global de-dollarization but on the other, was borne out of necessity when Russia began to believe it may be expelled from SWIFT as punishment for its support of rebels in Ukraine. Prime Minister Dmitry Medvedev warned of “unlimited consequences” if the West decided on a punitive SWIFT freeze.

Two months later, Moscow would receive a seat on the SWIFT board.

Now, Russia is taking de-dollarization a step further by suggesting that a BRICS alternative to SWIFT may be in the cards. RT has more: Continue reading »

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May 29

U.S. Households Under Pressure: Stagnant Incomes, Rising Basic Expenses (ZeroHedge, May 29, 2015):

How do you support a consumer economy with stagnant incomes for the bottom 90%, rising basic expenses and crashing employment for males ages 25-54? Answer: you don’t.

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May 29

How Japan’s Unemployment Rate Dropped Even As 280,000 People Lost Their Jobs (ZeroHedge, May 29, 2015):

Yesterday Japan amazed everyone when it reported that its unemployment rate had dropped yet again, this time to 3.3%, the lowest since April 1997. The paradox is that while the number of Japan’s unemployed dropped by 20,000, the number of those employed plunged by 280,000! Or as Goldman calls, it “growth in jobholders looks to have peaked amid a lack of recovery momentum in the economy”

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May 29

GDP Report Confirms Global Trade Is Crashing, And Why That Is Good News For Some (ZeroHedge, May 29, 2015):

We did not actually need confirmation that global trade is slowing to a crawl (and has in fact reversed): after all, we have been showing just that for the past year, most recently earlier this week but it is important to note that in today’s negative GDP print, it was net trade (exports less imports) that subtracted -1.9% from the final GDP print, driven by a -1.03% annualized drop in exports. This was the biggest hit to US trade since thegreat financial crisis.

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May 29

china-shenzhen-nasdaq

A Tale Of Two Bubbles: China vs Nasdaq (ZeroHedge, May 29, 2015)

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May 29

Chicago PMI Bounce Is Dead, Crashes Back Near 6 Year Lows (ZeroHedge, May 29, 2015):

Following Milwaukee ISM’s plunge to 15-month lows this morning with a plunge in new orders (missing for 4 of last 5 months), Chicago PMI printed a disappointing 46.2 (against expectations of a slight rise to 53.0 from 52.3 last month) – lower than the lowest economist estimate. After last month’s modest (dead-cat) bounce back from winter’s collapse to 6 year lows, this re-collapse is hardly the kind of Q2-recovery-reinforcing data the mainstream wants. With the level now back at the same when Lehman hit, New Orders, Production, and Employment all contracted in May.

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May 28

H/t reader M.G.:

“Looks like the greedy guts are adding to unemployment.
Remember, for every job lost, seven more are put at risk.”


jamie-dimon

JPMorgan Chase & Co. (JPM) To Cut More Than 5,000 Workers By End Of 2016: Report (International business Times, May 28, 2015):

JPMorgan Chase & Co. (NYSE:JPM) is starting to lay off more than 5,000 employees in a $1.4 billion cost-cutting measure to be completed by the end of 2016, the Wall Street Journal reported Thursday, citing people familiar with the matter. A spokeswoman for JPMorgan Chase would not comment on the report, but said the layoffs are part of cost-cutting efforts outlined in a presentation released earlier this year.

JP Morgan, the largest U.S. bank, is overhauling its nearly 5,600 branches. Chairman and CEO James Dimon said Wednesday the average Chase bank branch will lose one employee over the next two years. The bank has already cut 1,000 jobs. Continue reading »

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May 27

putin-gold

Gold Bullion Is “100% Guarantee from Legal and Political Risks” – Russia (Goldcore, May 27, 2015):

– Gold is a “100% guarantee from legal and political risks”
– Russia’s central bank buys another 300,000 ounces in April
– Russia views its overseas assets as vulnerable
– ‘De-dollarisation’ continues across Asia
– Gold offers protection from growing risks today

Russia’s central bank once again increased its gold holdings substantially in April. They added another 300,000 ounces to their existing stockpile bringing the total up to 40.1 million ounces (see chart below). Continue reading »

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May 27

Oesterrreichische Nationalbank

The End Game Continues: Austria Repatriates Gold (ZeroHedge, May 27, 2015):

After Germany and the Netherlands decided to repatriate a substantial amount of gold from vaults abroad to the vaults in respectively Amsterdam and Frankfurt, now Austria is joining the ‘bring our gold home’ movement.

After increasing pressure from the Austrian people on the government and the central bank to increase the ratio of the gold effectively held in the Austrian Central Bank in Vienna, the central bank has finally made the decision to effectively do so. Less than 20% of Austria’s (relatively) sizeable gold reserves were held in its own vaults with the remainder being stored in Switzerland and London. Austria will now remove 63% of the gold from London and transport it to both Switzerland and Austria. This will be an interesting test case to see how long it will take the Bank of England to ship the 140 tonnes of gold (4.5 million ounces) to Vienna, and we dare to bet this will either take much longer than anticipated, or we’ll suddenly see another gold withdrawal from the Federal Reserve which will very likely be the magical 125-150 tonnes number. Continue reading »

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May 27

Bel-Air-Mansion-McClean-Design

Peak Inequality: $500 Million Asking Price For LA Mansion (Dark-Bid, May 27, 2015):

Just when you thought you had seen it all, Nile Niami pulls another mansion out of his hat. The film producer and speculative real estate developer announced the asking price for the mansion he is building on a hill in Bel Air, the location where the memorable Fresh Prince of Bel Air TV show takes place. Unfortunately, Will Smith is not fresh enough for this place. You have to be a literal prince to afford it.

The mansion is not even finished yet, but it will be over 100,000 square feet. The main residence is 74,000 square feet, but several other homes will be included. At 5,000 square feet, the master bedroom is larger than most people’s houses. The property also features a 30-car garage and a Monaco-style casino. Continue reading »

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May 27

Hillary Clinton Exposed Part 2 – Clinton Foundation Took Millions From Countries That Also Fund ISIS

How Clinton Foundation Donations Led To Billions In Weapons Sales To Autocratic Regimes (Liberty Blitzkrieg, May 26, 2015):

Another day, another Clinton Foundation related scandal. In the latest expose by International Business Times’ David Sirota, we learn about the explosion in weapons sales to certain nations during Hillary Clinton’s tenure as Secretary of State. Billions of dollars in sales went to autocratic regimes notorious for human rights abuses who donated generously to the Clinton Foundation. Should we be surprised? No. Should we be outraged and disgusted? Absolutely. Of all the Clinton scandals, the following is the most dangerous to peace on earth.

Here are some excerpts from the IBT article detailing how taxpayer money is being used to arm the world into oblivion:

Even by the standards of arms deals between the United States and Saudi Arabia, this one was enormous. A consortium of American defense contractors led by Boeing would deliver $29 billion worth of advanced fighter jets to the United States’ oil-rich ally in the Middle East.

Israeli officials were agitated, reportedly complaining to the Obama administration that this substantial enhancement to Saudi air power risked disrupting the region’s fragile balance of power. The deal appeared to collide with the State Department’s documented concerns about the repressive policies of the Saudi royal family.

In the event you want a highlight reel of heinous Saudi behavior, click here. Continue reading »

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May 27

MCD-000

Humiliated McDonalds To Stop Reporting Monthly Sales (ZeroHedge, May 27, 2015):

What do you do when month after month you have nothing but bad data to report. Simple: you have two choice – you either seasonally adjust the data (or in the case of US GDP, double-seasonally adjust it), or if that is not possible since unlike US GDP, your numbers are at least somewhat indicative of underlying reality, you stop reporting them altogether.

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May 26

Inflation Watch: Prices To “The Happiest Place On Earth” Are Up 2900% Since 1971 (ZeroHedge, May 25, 2015):

Having previously shown that money can buy happiness, it appears, as Bloomberg reports, that the cost of buying that happiness is soaring. With well-managed government-provided statistics on inflation, why would one look elsewhere for clues as to the declining standards of living across much of America… but look we did and with wages stagnant, the 2900% surge in prices to Disneyland since 1971 makes ‘the happeist place on earth’ a place only the wealthy can afford to visit.

Disney Ticket Prices

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May 26

Chinese Stocks Are Now Up Over 100% Year-To-Date (ZeroHedge, May 25, 2015):

Another day, another dip to be bought aggressively in China. The only catalyst for moar – aside from “well it was up yesterday” – is the news that the Shanghai-HK Stock Exchange aggregate quota will be abolished, leaving room for more speculative excess to flood into 500%-gainers.  CSI-300 is now up almost 6% since Friday’s close and Shenzhen and CHINEXT are soaring back from underperformance yesterday. To round things out on a superlative note, the Shenzhen Composite – which contains all the ponzi-based self-collateralized idiot-makers, is now up over 100% year-to-date. Simply put, you can’t keep a bad market down…

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May 25

001-ben-bernanke

Bernanke Says “No Large Mispricings In US Securities”; These 5 Charts Say Otherwise (ZeroHedge, May 24, 2015):

Retired central banker, blogger, bond guru and hedge fund consultant Ben Bernanke just uttered the following total rubbish…

*BERNANKE: NO LARGE MISPRICINGS IN U.S. SECURITIES, ASSET PRICES

In an effort to save whoever it is that will pay him $250,000 next for these wise words, we offer five charts.

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May 25

108804920AW001_PRESIDENT_OB


Warren Buffett thinks the poor should stop blaming inequality on the rich (Independent, May 23, 2015):

People need to stop blaming the rich for income inequality in America according to the third richest man in the world, Warren Buffett

In an opinion piece written for the Wall Street Journal Mr Buffett, who is estimated to be worth $71.3bn by Forbes magazine, claims that the depressing fact is that “the poor are most definitely not poor because the rich are rich”.

Citing the likes of Henry Ford and Steve Jobs as examples of innovation, Mr Buffett goes on to say that the rich are not undeserving and that “most of them have contributed brilliant innovations or managerial expertise,” to America’s economy. Continue reading »

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May 25

Russian president Vladimir Putin

 – Putin enacts law banning ‘undesirable’ NGOs (AFP, May 23, 2015):

Moscow (AFP) – Russian President Vladimir Putin officially enacted a controversial law banning “undesirable” non-governmental organisations, the Kremlin said Saturday, in a move condemned by human rights groups across the board.

The law allows authorities to bar foreign civil society groups seen as threatening Russia’s “defence capabilities” or “constitutional foundations” and go after local activists working with them, the Kremlin statement said.

Supporters presented the law as a “preventative measure”, necessary after the wave of Western sanctions put in place over the Ukraine conflict. Continue reading »

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