Nov 12

Hopeless!


Brazilian butt lift

- America’s Next Economic Bonanza: Bigger Butts (ZeroHedge, Nov 11, 2014):

The U.S. booty business is getting a big bump, as AP reports companies are cashing in on growing demand from women seeking the more curvaceous figures of their favorite stars. While Millennials may spend most of their day sitting on their Minaj-esque “big fat butts” playing Kardashian, the business of boosting butts is bursting. From padded panties and gym classes that promise plumper posteriors to the “Brazilian butt lift,” in which fat is sucked from a patient’s stomach, love handles or back and put into their buttocks and hips, French sociologist Jean-Claude Kaufmann says “there’s a trend to show off the buttocks in place of breasts due to the rise of Beyonce,” Jennifer Lopez, and more recently Meghan Trainor. The bottom line – butt lifts and implants are the fastest growing plastic surgery, helping GDP at a cost of $10-13k each.

As AP reports,

Gym classes that promise a plump posterior are in high demand. A surgery that pumps fat into the buttocks is gaining popularity. And padded panties that give the appearance of a rounder rump are selling out. Continue reading »

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Nov 06

- Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman (Zerohedge, Nov 5, 2014):

Nothing to see here, move along…

We are sure it’s nothing to worry about, and in now way indicative of any global aggregate economic weakness, but global commodity prices (that would be the ‘stuff’ that is used to make the ‘stuff’ we all buy every day) are collapsing at the fastest rate since Lehman…

Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman

Of course, it’s all about over-supply, not under-demand… just like the Baltic Dry was not low because of shitty trade volumes but because of too many ships… but it’s just the other side of an uncomfortably real mal-investment-driven fiasco…

As the chart below shows… maybe it is the economy stupid and with US GDP expectations being ratcheted down after construction spending and trade deficit data, maybe the US is not decoupling after all. Continue reading »

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Nov 05

- Interest Rates Cannot Rise and Here’s Why… (Frist Rebuttal, Nov 3, 2014):

I wrote an article recently over at Voices of Liberty that lays out the very dire picture for those of us who have yet to retire.  The gist of the article is that the Fed has effectively robbed the retired class of any hope for having enough of a nest egg to live off through the end of their lives if they want to retire at 65.

Some may argue well this past 10 years has just been an anomaly of low interest rates but they will come back i.e. normalize to higher levels here in the next couple years.  Well let me show you why that is simply wrong. Continue reading »

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Oct 31

- Why Did Q3 GDP Jump: Thank ISIS And The “War On Terror” (ZeroHedge, Oct 30, 2014):

Never let a crisis, or war on terror, go to waste…

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Oct 19

- Kudos To Herr Weidmann For Uttering Three Truths In One Speech (David Stockman’s Contra Corner, Oct 17, 2014):

Once in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets.

These days the Keynesian chorus in favor of policy activism is so boisterous that a succinct statement to the contrary rarely gets through – especially at Rupert Murdoch’s Wall Street yarn factory. But here’s what penetrated even Brian Blackstone’s filters:

“The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” he said.

Continue reading »

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Oct 16

Reality is still the same, only the GDP figures are different.

Mission accomplished!


hookers-drugs-italy-recession

- Sex, drugs and…Hookers and dope bring Italy out of recession (RT, Oct 15, 2014):

Illegal economic activities such as drugs and prostitution are apparently responsible for having lifted Italy out of economic recession. EU data calculations have demonstrated that the black market has significantly boosted GDP figures.

Italy is technically no longer in economic recession because of the addition of figures from illegal activities.

Continue reading »

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Oct 11

- The “Growth Problem” Explained For Idiots And Federal Reserve Dummies (ZeroHedge, Oct 10, 2014):

Over the past six years we have tried, in a countless number of ways, to explain to the “wise” economists, IMFers, World Bankers, Federal Reservers, talking heads and everyone else who would rather not listen, that which is glaringly obvious: the US (and global) economic growth will never recover and rebound and in fact will decline with every passing year for one simple reason – the US (and global) debt bubble is bigger than ever.

In fact, at 300% total debt/GDP it is bigger than the 275% hit during the Great Depression (we doubt we need to remind readers what global event ended that particular time in US history).

So, in hopes there is still some intelligent life left among the decision makers, and in hopes of liquidating the record debt overhang before it is too late and the US has to engage in another deadly, global war, here it is again: Continue reading »

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Sep 18

The Fed’s Laughable GDP “Forecast” Just Got Even Funnier (ZeroHedge, Sep 17, 2014):

What in January 2012 was a 2014 GDP forecast range of 3.7%-4.0% collapsed to 2.1%-2.3% in June (because clearly the Fed couldn’t possibly forecast snow in the winter), and three months later is now 2.0%-2.2%. In short, a 43% forecasting error. Continue reading »

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Sep 09

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.

- No Economy For Americans (Paul Craig Roberts, Sep 8, 2014):

Quarterly Request for Donations

As many of you know, a couple of years ago when I tried to retire you wouldn’t hear of it.
I resigned my syndicated column and said goodbye. In thousands of emails you described to me your reliance on my experience and education to help you to understand in a non-partisan way the events of our time. You made a convincing case. I came out of retirement, opened this website, and you have faithfully supported it.

This is your website. It will continue as long as you support it.

No Economy For Americans

Paul Craig Roberts

The Dow Jones stock average closed Friday at 17,137, despite the fact that the payroll jobs report was a measly 125,000 new jobs for August, an insufficient amount to keep up with the growth in the working age population.

The low 125,000 jobs figure is also inconsistent with the Bureau of Economic Analysis’ second estimate of second quarter 2014 US GDP growth of 4.2 percent–a figure beyond the capability of the present-day US economy.

Clearly, the economic numbers are out of sync with one another. They are also out of sync with reality. Continue reading »

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Aug 15

bubble burst_0

- 14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst (Economic Collapse, Aug 14, 2014):

Did you know that a major event just happened in the financial markets that we have not seen since the financial crisis of 2008?  If you rely on the mainstream media for your news, you probably didn’t even hear about it.  Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds.  Now it is happening again.  In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”.  But this is not the only indication that the U.S. economy could be on the verge of very hard times.  Retail sales are extremely disappointing, mortgage applications are at a 14 year low and growing geopolitical storms around the world have investors spooked.  For a long time now, we have been enjoying a period of relative economic stability even though our underlying economic fundamentals continue to get even worse.  Unfortunately, there are now a bunch of signs that this period of relative stability is about to end.

The following are 14 reasons why the U.S. economy’s bubble of false prosperity may be about to burst: Continue reading »

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Jul 23

- The Baltic Dry Index Collapses To 18-Month Lows; Worst July Since 1986 (ZeroHedge, July 22, 2014):

The bulls will ignore it, shrugging that it’s merely over-supply of ships that the resurgent world economy will quickly soak up as it ‘recovers’… However, World GDP growth expectations are collapsing, trade volumes are slowing, and the Baltic Dry Index has continued to slump to its lowest since the start of January 2013 (a holiday period). For some context, this is the lowest July level for the Baltic Dry since 1986… “noise”

There’s this…

20140718_gdp

and then there’s this…

20140722_BDIY2

Which is the worst July level for the global shipping index since 1986… Continue reading »

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Jul 23

- Portugal President Admits Espirito Santo Failure Could Be Systemic As Another HoldCo Goes Bankrup (ZeroHedge, July 22, 2014):

As RioForte joins its parent ESI in bankruptcy, in a strangely honest turn of events from a European leader, Portugal’s President Anibal Cavaco Silva warned on Monday that fallout from the financial troubles of the founding family of Banco Espirito Santo (BES) could affect the wider economy. With Portugal’s hope-strewn GDP growth expectations at only 0.9% for 2014, they do not have much room for disappointment before the nation (whose yields remain near record lows) double- or triple-dips back into recession. Silva concluded, “We cannot ignore that there will be some impact on the real economy,” which is odd given every talking-head has explained it is “contained” and “priced-in.”

Rioforte joins ESI in bankjruptcy…

  • *RIOFORTE SAYS IT SEEKS PROTECTION FROM CREDITORS
  • *RIOFORTE SAYS FILING IS LINKED TO DIFFICULTIES AT ESI

Just another default in the chain Continue reading »

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Jul 19

- World GDP Hopes Are Collapsing (ZeroHedge, July 18, 2014):Share27

Presented with no comment (except to note how different the “fact” in this chart is from the “fantasy” we hear spewed day after day about ‘recovery’ in the world’s economy)

20140718_gdp

Chart: Bloomberg

 

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Jul 08

facepalm

- China Prepares To “Boost” Economy By Also Revising Its GDP Definition (ZeroHedge, July 8, 2014):

Now that even that bedrock of the Keynesian voodoo religion, the Gross Domestic Product calculation, has become a ridiculous farce, with everyone in Europe suddenly adding the uncalculable “contribution” from drug dealers and hookers all in a mad dash to make debt/GDP ratios appear better than they are, it is truly time to unleash the clowns as none other than the country which has taken fabricating economic data to an artform, no not the US for those confused but China, is preparing to change the way its calculates its GDP, with the biggest contribution coming from, hold on to your hats, R&D. One wonders if “reverse engineering” of pirated products and services is covered in this “non-GAAP GDP” category. The end result? GDP for the country which cumulatively will be several percentage points higher once the entire fudging/recasting exercise is completed. Continue reading »

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Jun 26

GDP Disaster: Final Q1 GDP Crashes To -2.9%, Lowest Since 2009, Far Below The Worst Expectations (ZeroHedge, June 25, 2014):

Remember when in January 2014, Q1 GDP was expected to rise 2.6%? Well, here comes the final Q1 GDP revision and it’s a doozy: at -2.9%, far below the -1.8% expected and well below the -1.0% second revision, it is an absolute disaster, and is the worst print since Q1 2009.

And while a bad GDP print was largely expected, the driver wasn’t: personal consumption expenditures somehow crashed from 3.1% to just 1.0%, far below the 2.4% expected, meaning that all hope of a consumer recovery is dead. Finally, as a reminder, US GDP has never fallen more than 1.5% except during or just before an NBER-defined recession since quarterly GDP records began in 1947. Good luck department of truth propaganda machine, because even assuming 3% growth every other quarter in 2014 means 2014 GDP will be 1.5% at best!

 

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Jun 14

- 12 Numbers About The Global Financial Ponzi Scheme That Should Be Burned Into Your Brain (Economic Collapse, June 11, 2014):

The numbers that you are about to see are likely to shock you.  They prove that the global financial Ponzi scheme is far more extensive than most people would ever dare to imagine.  As you will see below, the total amount of debt in the world is now more than three times greater than global GDP.  In other words, you could take every single good and service produced on the entire planet this year, next year and the year after that and it still would not be enough to pay off all the debt.  But even that number pales in comparison to the exposure that big global banks have to derivatives contracts.  It is hard to put into words how reckless they have been.  At the low end of the estimates, the total exposure that global banks have to derivatives contracts is 710 trillion dollars.  That is an amount of money that is almost unimaginable.  And the reality of the matter is that there is really not all that much actual “money” in circulation today.  In fact, as you will read about below, there is only a little bit more than a trillion dollars of U.S. currency that you can actually hold in your hands in existence.  If we all went out and tried to close our bank accounts and investment portfolios all at once, that would create a major league crisis.  The truth is that our financial system is little more than a giant pyramid scheme that is based on debt and paper promises.  It is literally a miracle that it has survived for so long without collapsing already. Continue reading »

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Jun 07

- “Same Stuff, Different Year” (ZeroHedge, June 4, 2014):

How many more of these annual disappointments does it take before the world gets the joke…

The History of consensus expectations for US GDP…(notice they all go from the upper left to the lower left…)

20140604_GDPSSDY

Source: Bloomberg h/t @M_McDonough

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Jun 02

- Obamanomics Simplified (ZeroHedge, May 30, 2014):

The Godzilla of incompetence…

obamanomics

Source: Investors.com via The Burning Platform blog

“weather?…”

Continue reading »

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May 31

FYI.


trumanshow

- The Truman Show US Economy: Real GDP Numbers Show -9% Annualized Drop (Activist Post, May 31, 2014):

Watching all aspects of the US economy from outside of the propaganda zone sometimes feels like you are watching The Truman Show.

The Truman Show, for those who haven’t seen the 1998 Jim Carrey film, centered around a completely false town.  In the movie everything about the town was fake except for one person, Truman Burbank, who wasn’t in on the plot.  In a sense your average person in the US, particularly when it comes to the economy, is akin to Truman.  They have grown up inside this completely false environment and don’t even know it is all fake.

Virtually everything in The Truman Show-esque US economy is misinformation and completely skewed in which the creators, the US government, the Federal Reserve and the mainstream media constantly propagate blatantly false and wrong information and the American public, like Truman, have no idea that anything is even amiss.

The latest hilarious plot twist, at least for those of us watching it as observers and not intimately tied into the story, were the latest GDP numbers released showing a -1% annualized rate in the first quarter of this year. Continue reading »

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May 31


Added: May 29, 2014
Description:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss driving GDP high on cocaine, banking fraud and new-fangled derivatives products. In the second half, Max interviews Satyajit Das about China’s debt problems and central banks’ printing presses.

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