Aug 26, 2016
“Everything calls peace, Schalom! Then it will occur – a new Middle East war suddenly flames up, big naval forces are facing hostiley in the Mediterranean – the situation is strained. But the actual firing spark is set on fire in the Balkan: I see a “large one” falling, a bloody dagger lies beside him – then impact is on impact. …”
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In 1960, the city of Detroit was the greatest manufacturing city that the world had ever seen. Nearly two million people lived there, and it had the highest per capita income in the United States. That may be hard to believe, because today it actually has one of the lowest per capita incomes of all of our major cities. Over the decades more than a million people have left the city, and thousands of abandoned homes have been torn down. But there are still tens of thousands of abandoned dwellings that remain standing, and some have sold for as little as one dollar in recent years. Once Detroit was the envy of the entire planet, but now it has become a global joke and in other countries they love to do news stories about “the ruins of Detroit” to show how rapidly America is rotting and decaying. Sadly, Detroit is far from alone, because there are other formerly great manufacturing cities that have declined just as fast as Detroit has.
Earlier today, I came across a video that contains footage that someone recently captured as they drove through the city of Detroit at night. To say that the footage is disturbing would be a tremendous understatement… Continue reading »
With 85% of Wall Street telling Citi they expect a “dovish hike signal” from Yellen tomorrow, which means a polite request for another BTFD opportunity, even if as BofA says “expectations for a dovish Fed are coinciding with macro strength in the US (most obviously in housing & consumer spending) as well as highest level of wage inflation since Jan’10“…
… here is a quick reminder of where we currently stand from BofA’s Michael Hartnett, from a brief note titled The Liquidity Supernova & the “Keynesian Put.”
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Risk assets are now supported by the new ”Keynesian Put”, the expectation that fiscal measures will be deployed to combat any renewed weakness in the economy/markets (independently of any larger political projects). But asset prices remain primarily supported by excess monetary abundance across the world: Continue reading »
Deutsche Bank’s war of words with the ECB is not new: it was first unveiled in February when, as we wrote at the time “A Wounded Deutsche Bank Lashed Out At Central Bankers: Stop Easing, You Are Crushing Us.” Europe’s largest bank, with the massive derivatives book, then upped the ante several months later in June, when its chief economist Folkerts-Landau launched a shocking anti-ECB rant in which it warned of social unrest and another Great Depression.
Ironically, these infamous diatribes hurt more than helped: telegraphing to the market just how hurt DB was as a result of the ECB’s monetary policy, the market punished its stock, which has been recently trading within spitting distance of all time lows, in effect making Deutsche Bank’s life even harder as it now has to contend not only with its own internal profitability problems, but also has to maintain a market-facing facade that all is well. So far, it has not worked out very well, prompting numerous comparisons to another infamous bank.
So, in what may have been DB’s loudest cry for help against the ECB’s unwavering commitment to rock-bottom interest rates, the bank’s CEO, John Cryan, warned in a guest commentary ahead of the Handelsblatt Banking Summit titled, appropriately enough “Banks in Upheaval”, to be held in Frankfurt on August 31 and September 1, that “monetary policy is now running counter to the aims of strengthening the economy and making the European banking system safer.” Continue reading »
(REUTERS) – A European Union scheme to relocate refugees from frontline countries Greece and Italy to other member states must be bigger and move faster, the U.N. refugee chief said in Athens on Wednesday.
The programme, devised last year, was intended to relocate 160,000 from Greece and Italy to other European countries over two years but fewer than 4,000 people have moved so far.
Some central European member had fought the scheme, with Hungary and Slovakia challenging the decision in EU courts. Continue reading »
Volatility is the name of the game. Stocks are acting up, but standing strong. Oil is propelling higher and the US dollar is falling. Turmoil around the world has never been higher and an ominous shadow is lurking in the background, ready to strike.
The situation that we now face is ultimately going to end in a collapse of epic proportion. The financial world is now a ticking bomb that is just waiting to explode – I know this, you know this and even if the masses don’t, they can feel it in their bones. Continue reading »
H/t reader squodgy:
“If we can’t all learn from the situation in Venezuels, which has been created by the banksters as a lesson to the people for wanting to share the spoils of their oil assets, then we have no hope.
It is coming to us all, we have had enough warnings and notice, we have no excuse.”
Venezuela — Life in Venezuela now consists of empty grocery stores, record rates of violent crime, and widespread shortages of just about everything. The economic and political conditions have been deteriorating for years, but recent stories coming from this once-rich nation are astonishing. Bars have run out of beer, McDonald’s can’t get buns for their Big Macs, and rolling blackouts are a regular occurrence. The average person spends over 35 hours a month waiting in line to buy their rationed goods, and even basics like toilet paper and toothpaste are strictly regulated.
The fiasco began when the price of oil collapsed and sent Venezuelan finances into chaos. The oil-dependent nation, despite its imposing government policies, couldn’t prevent the fallout. The current problems are further compounded by rampant corruption throughout the Venezuelan government. The likelihood of a peaceful resolution is decreasing by the day, and political dissents are likely to be met with brutal crackdowns. The desperation of the masses could explode violently under the right circumstances, and there are few things more dangerous to a nation than a hungry population. Continue reading »
(AFP) – Germany’s economy, Europe’s largest, grew by 0.4 percent in the second quarter, federal statistics office Destatis said in data released on Wednesday.
Gross domestic product (GDP) increased by 0.4 percent between April and June, adjusted for seasonal, calendar and price effects — slower than the unexpectedly strong 0.7 percent expansion in the first quarter.
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“…the only way gold loses is if normal business and private sector cycles come back. If that is the case, gold goes back $100 per ounce. The other outcomes: deflation, stagflation, hyperinflation are all good for gold.” As for a return to a gold standard, Shvets has more bad news: “Gold standards come back after the war, not before the war.”
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The tragedy of Venezuela continues unabated, but that doesn’t mean the government of President Nicolás Maduro has stopped trying to fix problems like the devastating scarcity of food which has led to malnutrition, riots, food truck hijackings, vigilante lynchings of petty thieves, and the starvation of zoo animals.
No, Maduro hasn’t admitted the failure of Chavismo — the brand of Bolivarian socialism imposed on the oil-rich country by his late predecessor Hugo Chavez — instead, Venezuela’s embattled leader has launched a war on “anxiety.”
The National Superintendency of Fair Prices has reportedly instituted a policy of fining bakeries that allow lines to stretch out their front doors, according to PanAmPost. The head of this particular bureaucracy, William Contreras, claims the lines aren’t a true indicator of a severe shortage of bread, but rather, a political “strategy of generating anxiety.”
Contreras claims there is no shortage of raw materials to make bread, but seems to not understand that bakeries just bake bread, they don’t process the different kinds of wheat used to make the flour that’s then used to make bread. Continue reading »
After a global call to arms, the Anonymous campaign against the global banking industry, OpIcarus seems to be gaining major momentum, as eight more financial institutions have been taken down after the initial attack on the Central Bank of Greece – followed by a similar DDoS attack on the Central Bank of Cyprus.
According to a video released in conjunction with OpIcarus, the attack on Bank of Greece marked the beginning of a “30-day campaign against central bank sites across the world.” This massive push, according to the video, aims to “strike at the heart of [the] empire by once again throw[ing] a wrench into the machine.”
In some of the most recent attacks over the weekend, hackers reportedly targeted the Central Bank of the Dominican Republic, the Dutch Central Bank, the Central Bank of Maldives, and Guernsey Financial Services Commission, according to the official @OpIcarus Twitter account. Continue reading »
Seemingly no amount of empirical evidence can convince progressives that raising minimum wages to artificially elevated levels is a bad idea. Somehow the basic idea that raising the cost of a good ultimately results in lower consumption of that good just doesn’t compute. Though it does seem odd that progressives in states like California lean heavily on higher taxes as a way to curb, for example, fuel consumption. Could it be that the left actually does understand the basic economics of the minimum wage debate but don’t find the math behind it to be particularly “politically expedient” in certain instances?
Despite the motives behind it, one thing is certain, the calls for a federal minimum wage hike are growing louder. Hillary recently endorsed a federal minimum wage hike and Bernie has proposed the “Pay Workers a Living Wage Act” in the Senate that proposes mandating a federal $15 minimum wage to be phased in over just 4 years (see “Dear Hillbama, $15 Federal Minimum Wage Equals 7 Million Job Losses“). Perhaps Bernie forgets that not everyone lives in extremely expensive cities like New York and San Francisco. Continue reading »
It’s not uncommon to hear that the growth in student loan debt is like a time bomb threatening to blow up the U.S. economy. Now, you can watch it tick. Continue reading »
The ECB is still purchasing €80 BILLION of ‘bonds’ every month!
In June, the ECB began buying the bonds of some of the most powerful companies in Europe as well as the European subsidiaries of foreign multinationals. This pushed the average yield on euro investment-grade corporate debt to 0.65%. Large quantities of highly rated corporate debt with shorter maturities are trading at negative yields, where brainwashed investors engage in the absurdity of paying for the privilege of lending money to corporations. By August 12, the ECB had handed out over €16 billion in freshly printed money in exchange for corporate bonds.
Throughout, the public was given to understand that the ECB was buying already-issued bonds trading in secondary markets. But the public has been fooled.
In a Fed Staff working paper released over the weekend titled “Gauging the Ability of the FOMC to Respond to Future Recessions” and penned by deputy director of the division of research and statistics at the Fed, the author concludes that “simulations of the FRB/US model of a severe recession suggest that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates in most, but probably not all, circumstances.” Continue reading »
Monsanto is losing millions on failed GM cotton. The company illegally pushed a form of Bt cotton into India and Africa more than a decade ago, but farmers are now pushing back by planting their own indigenous seed.
Monsanto is accused of writing laws and then breaking them to enter the market in India, but after more than 300,000 farmer deaths between 1995 and 2013, many of them attributed to Monsanto, the company is finally paying for their misdeeds. The corporation’s greed is linked to farmer suicides throughout Maharashtra, considered the ‘Cotton Belt’ in India.
The Indian government is now actively promoting the use of indigenous seed, and has called Monsanto out for profiteering illegally on Bt cotton seed.
Monsanto has already lost nearly $75 million in royalties this year (5 billion rupees) due to the change in seed choice by farmers. Sales in India have fallen by 15 percent, and though this is a relatively small market share, it is still making a huge impact on the company’s bottom line. Continue reading »
People better learn fast how to heal themselves through alternative medicine (Acupuncture, homeopathy, herbal medicine, etc.), diet and exercise, because the greatest collapse in world history is coming and Alois Irlmaier foresaw that the U.S. will get the greatest revolution of all time.
The medical system will no longer exist and you have to become your own doctor.
The critics of Obamacare have been proven right. The Obama administration promised that health insurance premiums would go down. Instead, they have absolutely skyrocketed. The Obama administration promised that Obamacare would not kill jobs. Instead, firms are hiring fewer workers because of suffocating health care costs. As you will see below, even the Federal Reserve is admitting this. The Obama administration also promised that the big health insurance companies would love the new Obamacare plans and would eagerly compete with one another to win customers in the new health insurance marketplaces. Instead, many of the big health insurance companies are now dropping Obamacare plans altogether.
We witnessed the latest stunning example of this phenomenon just a few days ago. It turns out that Aetna has been losing hundreds of millions of dollars on plans sold through the health exchanges, and now they plan to pull out of the program almost entirely… Continue reading »