ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jan 19 13:50

Yahoo rumored to cut 20-25% of its workforce

Jan 19 13:40

WaPo Buries: Minimum Wage Increase Cost Inner-City DC Two Walmart Stores

This kind of economic policy cannot be sustained. Walmart has already announced the closure of some 140 stored in the U.S., which means the engine that drives our economy today, consumer spending, is slowing.

Jan 19 13:32

Here’s a List of Bernie Sanders’ $19.6 Trillion in Tax Hikes (not pretty)

Sen. Bernie Sanders’ populist message has put him in the position to potentially win Democratic nomination contests in both Iowa and New Hampshire, shaking the sense of inevitability that has surrounded Hillary Clinton. As the socialist senator from Vermont gains traction in polls, Clinton has more aggressively attacked his policy proposals, forcing Sanders to release details on how he would pay for his ambitious economic and social agenda.

Jan 19 12:21

Negative oil prices are here… -$0.50

Jan 19 12:02

Essar Steel Algoma looks for new owner

Essar Steel Algoma will start searching next month for a buyer or major new investor in its Sault Ste. Marie steelmaking operation.

Jan 19 11:44

Mega Investment Bank Suddenly Pooh-Poohs QE

Jan 19 11:44

Canada Set To Unleash Negative Rates As Oil Patch Dies, Depression Deepens

This Wednesday, the Bank of Canada has a decision to make.

Canada’s oil “dream” is dying thanks to the inexorable slide in crude prices and as the IEA made clear earlier today, the pain is set to persist for the foreseeable future as the world “drowns in oversupply.”

“Lower for longer” has hit the country’s oil patch hard. We’ve spent quite a bit of time documenting the plight of Alberta, where job cuts tied to crude’s slide have led directly to rising suicide rates, soaring property crime, and increased food bank usage (not to mention booming business for repo men).

Jan 19 11:05

Government Sachs Gets Golden Wrist Slap For Global Financial Crisis

the transfer of assets to the 1% pauses to pretend the governments serve the 99%

Jan 19 10:27

2016 Market Crash Explained In 1 Chart – Mike Maloney

what happens when manipulation is the only reason for the stock market numbers

Jan 19 09:59

Big Bank Stocks Have Been Crushed: Here’s Why

The conventional wisdom was that the Fed’s rate hike on December 16 of last year was going to help big bank stocks by boosting their ability to charge heftier interest rates on loans. That theory has pretty much been relegated to the dust bin of financial fairy tales along with the Fed’s prediction that the slump in oil prices would be “transitory.” Bank stocks have been cratering like it’s early 2008 all over again and oil prices can’t find a floor, having broken through $60, $50, $40 and now $30 a barrel over the past 12 months.

Jan 19 09:56

Gold Deficits and T-Bond Fantasies

Fort Knox would quickly deplete its gold if deficits were funded by selling gold, and Fort Knox may be nearly empty now. Let’s do the numbers.

Jan 19 09:51

"SLAVE LABOR": Hillary Confidante Cheryl Mills Pushes Manufacturing in Ghana with its 23¢ Minimum Wage

Cheryl D. Mills, long-time friend and confidant of Bill and Hillary Clinton, is promoting a 23 cents-an-hour wage in the West African nation of Ghana to lure textile and apparel industry companies to invest there even as the former secretary of state advocates a $15-an-hour “livable wage” here.

Jan 19 09:51

Detroit’s Teachers Want You to See These Disturbing Photos of Their Toxic Schools

Detroit’s students are trying to learn while breathing in black mold and sitting in classrooms filled with buckets catching toilet water leaking through the ceiling. And that’s not even the worst part.

Webmaster's Commentary: 

Actually the worst part is that Israel has brand new modern schools (and roads and other infrastructure) paid for by your tax dollars ... which is why there is nothing left over for you!

Jan 19 09:45

Crash Risk & The Imminent Likelihood Of Recession

Since October, the economic evidence has shifted from supporting a growing risk of recession, to a guarded expectation of recession, to the present conclusion that a U.S. recession is not only a risk but an imminent likelihood, awaiting confirmation that typically only emerges after a recession is actually in progress.

Jan 19 09:44

Art Cashin: This Is "What You Get Before You Slip Into A Crisis"

Wall Street veteran Art Cashin warns that bankruptcies in the US oil industry could cause severe stress in the financial system. He believes the rate hike of the Federal Reserve was a mistake.

Webmaster's Commentary: 

The Federal Reserve was the mistake!

Jan 19 09:38

A DESPERATE HILLARY ATTACKS SANDERS FOR SUPPORTING LEGISLATION BILL SIGNED

Under powerful attack from Bernie Sanders in last night’s debate over her cozy relationship with Wall Street titans like Goldman Sachs, Hillary Clinton stated that Sanders is “the only one of this stage that voted to deregulate the financial market in 2000. . .which [was] one of the main causes of the collapse in ’08.”

Sanders, of course, was the only one of the stage who could have voted to deregulate in 2000. Neither Clinton nor Martin O’Malley served in Congress at that time.

But this fact doesn’t render Hillary’s shot unfair, at least by current standards. I imagine that most presidential candidates would be willing to make such an argument if put on the defensive.

Jan 19 09:33

Privacy safeguards used by Clooney, DiCaprio, and Obama under fire by the Treasury Department

As a result of these ridiculous AML laws, walking around with too much cash is now considered an indication of criminal activity.

And thanks to the Civil Asset Forfeiture rules in the Land of the Free, police have the authority to confiscate your cash.

There’s no trial. No jury. They simply steal your money.

Believe it or not, the AML rules also apply to coin and jewelry dealers. So buying too much gold is now an indication of money laundering.

Having too many transactions in your bank account is considered ‘suspicious activity’.

(Of course, if you have too little financial activity, your bank account can be considered ‘dormant’ and turned over to the state.)

Even going to the bank to withdraw your own money is now considered suspicious. It’s madness.

The latest craze for the anti-money laundering crusaders is going after people who buy luxury real estate without a mortgage.

Jan 19 09:28

Leverage v the Black Hole in Economics

Jan 19 09:19

Negative Oil Prices Arrive: Koch Brothers' Refinery "Pays" -$0.50 For North Dakota Crude

Do you have some extra space in your garage or attic? Or perhaps you own an oil tanker you aren’t currently using. Or maybe you have a storage unit that’s got a little extra room next to an old mattress and box springs. If so, you may want to call up oil producers in North Dakota and ask if they’d care to send you some free oil.

Jan 19 09:07

The revolution continues with shipping freeze, stock plunge, US dollar dumping, $20 oil, attacks on gold mines and more

Perhaps the most dramatic, and under-reported, new aspect of this ongoing struggle has been the freeze on global shipping. To confirm reports on the internet of a shipping freeze, this writer called NYK lines, a major international shipping firm, and was told “we cannot speak for the whole world but, as far as our company is concerned, with current shipping prices we will lose money every time we send a ship so we have stopped.” Chinese government sources told this newsletter shipping companies are now demanding to be paid in Chinese yuan and not dollars and that is a major reason for the freeze in shipping worldwide. If this continues, it will lead to empty super-market shelves and social unrest, especially in the US. The announcement last week by Walmart that it is closing 269 stores is just the beginning.

Jan 19 08:59

Iceland Sentences 26 Corrupt Bankers To 74 Years In Prison

Iceland just sentenced their 26th banker to prison for his part in the 2008 economic collapse. The charges ranged from breach of fiduciary duties to market manipulation to embezzlement.

Webmaster's Commentary: 

We need some of that here!

Jan 19 08:35

The phantom trade

By now we seem to have a fairly good grip on what has led to the spectacular fall in commodity prices over the course of the last year: it’s essentially a supply side problem. A supply side built to cater for the booming China of the 1990s has been paired with a demand side more reminiscent of the 1980s.

Webmaster's Commentary: 

All economics comes down to ordinary people being able to buy what is being grown or manufactured. As wages and salaries get driven down while costs and taxation goes upo, the system must break down at some point, and all the "stimulus" and QE cannot stop that reality.

Jan 19 08:24

THIS IS IT. COLLAPSE IS HERE. — BILL HOLTER

Bill Holter from JS Mineset joins us to cover the unfolding global economic collapse. “This is it. We’re watching the meltdown. This is history being made.” Bill says.

Holter explains, “The Fed has lied themselves into a corner. They raised rates and here we are a month later, the system is imploding and they have no bullets left. They are going to have to do QE4, they are going to have to do negative interest rates.”

Webmaster's Commentary: 

The stock markets are up, and they openly admit it is on the rumors of renewed "stimulus"; the creation of instant money poured all over stock brokerages and banks, without which, the system would have collapsed by now.

In other words, the banker system is on life support, as the real economy is shutting down around it.

Jan 19 08:23

World Markets Tanking, This is Another 2008

Jan 19 08:13

PEAK GOLD -- Geologist & CEO, Wade Hodges

Jan 19 04:56

If Germany Teeters, So Goes Europe

Jan 18 21:20

The Citadel Is Breached: Congress Taps the Fed for Infrastructure Funding

The highway measure would be financed in part by a one-time use of Federal Reserve surplus funds and by a reduction in the 6 percent dividend that national banks receive from the Fed.
Banks vigorously fought the dividend cut, which was estimated to generate about $17 billion over 10 years for the highway trust fund.

Baruch Bernanke, who is now at the Brookings Institute, acknowledged in a blog post that the Fed could operate with little or no capital. His objection was that it is “not good optics or good precedent” to raid an independent central bank. It doesn’t look good.

Jan 18 21:15

Rand Paul's Great New Cartoon Ad: "Audit The Ted"

I've been a big critic of Rand Paul for being a sellout, which he is, but this new ad from Rand is great. It reminds me of the potential which Rand had, which many of us hoped would come to fruition when he was first elected to the Senate of his father's coattails.

Jan 18 20:18

Australian consumer confidence falls again amid Chinese economy worries

The Australian Media keep predicting doom and gloom for China and enforcing the idea that the market collapse is all China's fault. The fact is that 10% growth year on year is an exponential curve. 7% growth now is more than 10% a decade ago.
"He said Tuesday’s market highlight should be China’s fourth quarter gross domestic product report, with the median estimate being 6.9% growth."
The Australian Dollar is one of five currencies globally that floats freely. It's dropped from $1US = $1AUD down to $1US = $.68Aus. The Canadian Dollar down to $1US=$.69CAN and New Zealand $1US=$.64NZ.
The $AUS is the fourth most traded currency on the FOREX because the Aus Politicians surrendered control of the currency. They can't create it or set its value.

These rates create some bargains for the chosen few with free money from the FED.

Jan 18 19:22

China economic growth slowest in 25 years

China's economy grew by 6.9% in 2015, compared with 7.3% a year earlier, marking its slowest growth in a quarter of a century.

Annual growth in the world's second-largest economy was in line with global expectations.

Jan 18 18:24

Donald Trump says he will get Apple to 'start building their damn computers and things' in the US

Speaking at Liberty University today, Trump escalated his rhetoric on Apple's overseas manufacturing, and claimed somehow the US would reclaim those jobs in the future. "We have such amazing people in this country: smart, sharp, energetic, they're amazing," Trump said. "I was saying make America great again, and I actually think we can say now, and I really believe this, we're gonna get things coming... we're gonna get Apple to start building their damn computers and things in this country, instead of in other countries."

Jan 18 16:07

The State of Our Economy: What It Needs vs. What Washington Is Willing to Do

For those who closely follow financial markets, the first two weeks of 2016 have been the most fun since the financial crisis triggered by the collapse of the housing bubble. The market has lost more than 10 percent of its value since its late December peak, destroying more than $2 trillion of stock wealth.

Jan 18 15:18

Air France lets go of the 747: The plane that changed air travel forever

When Air France announced it was abandoning its last three 747s because they are just too expensive to maintain, the airline switchboard was overwhelmed.

Jan 18 15:13

French president declares economic emergency

Jan 18 15:06

WORLD CITIZEN SOLUTIONS

Far too long we've been taught that we cannot do anything, that this is the way life and the world has always been. That's a load of non-sense.

We are infinite souls with the capacity for great resilience, love and empathy. There is nothing more heroic than being able to empower one another in the fight against tyranny. We stand united, ready to face what we must to end wars.

Webmaster's Commentary: 

Website of today's radio show guest Ken O'Keefe!

Jan 18 14:47

What is driving the stock market panic?

Banks, hedge funds and governments all over the world are entering a new week of trading with fear and trepidation. The US markets are closed Monday for the Martin Luther King Jr. holiday, but one can be certain that the Federal Reserve, the major Wall Street banks and the Obama administration will continue to be involved in intensive behind-the-scenes discussions with their international counterparts following the most disastrous two-week start of a new year in history.

Jan 18 14:46

Iranian banks prepare for joining SWIFT banking system

Heads of International affairs of Iranian banks have gathered in Iran’s Central Bank building. They discussed actions they have to take after the implementation of Iran’s nuclear deal to be able to show a proper response to an expected surge of foreign banks that are going to start cooperation with the Islamic Republic.

Jan 18 14:19

Federal Reserve Manufactures Greater Recession

“You will be completely surrounded. If the feds want to force you to spend… or invest… your money, they will simply impose a ‘negative interest rate.’ They will do this by simply imposing a fee, or tax, on deposits greater than the interest rate you receive on your savings.”

Jan 18 14:11

World Economic Forum: Robots Will Eliminate 5 Million Jobs By 2020

By Joseph Jankowski

According to research by the World Economic Forum over five million jobs will be lost due to developments in genetics, artificial intelligence, robotics and other technological changes.

WEF founder Klaus Schwab and managing board member Richard Samans wrote in the newly released report titled “The Future of Jobs” that an estimated 7 million jobs will be lost with just 2 million gained as a result of technological change in 15 major developed and emerging economies...

Jan 18 14:07

62 world’s richest people own same wealth as half the world – report

The gap between rich and poor is widening according to the charity Oxfam, which reports that the 62 world’s richest people own the same as the poorest half of the planet's population.

Jan 18 13:46

Glencore's "Investment Grade" Bonds Just Took Out September Crash Lows: Downgrade To Junk Imminent

In early 2014, when not a cloud was visible on the Commodity/Copper/China sky, we predicted that the best way to trade the upcoming Commodity/Copper/China Collapse is by going long Glencore CDS, the equivalent of shorting Glencore bonds (and implicitly stock).

Jan 18 13:46

Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount

Italian bank stocks are crashing (with BMPS down 40% year-to-date) as Reuters reports that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid. The broad banking sector is down 4% with stocks suspended, and in light of this bloodbath, Italian regulators have decided in their wisdom, to ban short-selling of some bank stocks (which has driven hedgers into the CDS market, spking BMPS credit risk).

Jan 18 13:33

On the Brink? Russian Sanctions to Cost Turkey Four Times Initial Estimates

Russian sanctions are now expected to cost Turkey more than $12 billion annually - four times Ankara's previous estimates, according to a Turkish trade official; this, together with the consequences of the recent terrorist attacks in which the country's tourism industry was targeted, signal that Turkey should brace for the worst.

Jan 18 13:32

Davos Boss Warns Refugee Crisis Could Be Precursor to Something Much Bigger

As the crash in commodities prices spreads economic woe across the developing world, Europe could face a wave of migration that will eclipse today’s refugee crisis, says Klaus Schwab, executive chairman of the World Economic Forum.

“Look how many countries in Africa, for example, depend on the income from oil exports,” Schwab said in an interview ahead of the WEF’s 46th annual meeting, in the Swiss resort of Davos. “Now imagine 1 billion inhabitants, imagine they all move north.”

Jan 18 13:21

After Deadline: Elba House closes its doors

The Elba House, a landmark in the small town just north of Whitewater State Park, has a closed sign on its door.

Mayor Bernard Dorman said the sign went up this week at the restaurant that first opened in 1873. It owned by Dick Hildebrand who has had it for sale "for quite some time," he said. "I really don't know why it closed … It was kind of a shock to us."

Calls to the Elba House and Hildrebrand, who lives nearby, weren't answered and there were no answering machine. The restaurant's Facebook page still highlights New Year Eve specials of prime rib or lobster and petite filet.

Webmaster's Commentary: 

The whole plan of the private central bankers was to grab all the wealth of the people. But nobody had a plan what to do when they succeeded and commerce froze!

Jan 18 12:53

China’s top market regulator may be resigning

The head of China’s top market regulatory agency, the China Securities Regulatory Commission (CSRC), has offered to step down, Reuters reports, citing market and political sources. Xiao Gang, 57, tendered his resignation last week, but it’s not clear whether it has been accepted, according to Reuters.

Jan 18 12:36

Peter Schiff: The Fed & Stock Market Crash

Jan 18 12:23

Bets against the dot plot go into overdrive

Jan 18 12:14

European Leaders Fear The Refugee Crisis Will Tear The E.U Apart

Is this how "Europe" ends?

The Germans, founders and funders of the postwar union, shut their borders to refugees in a bid for political survival by the chancellor who let in a million migrants. And then -- why not? -- they decide to revive the Deutschmark while they're at it.

That is not the fantasy of diehard Eurosceptics but a real fear articulated at the highest levels in Berlin and Brussels.

Chancellor Angela Merkel, her ratings hit by crimes blamed on asylum seekers at New Year parties in Cologne, and EU chief executive Jean-Claude Juncker both said as much last week.

Juncker echoed Merkel in warning that the central economic achievements of the common market and the euro are at risk from incoherent, nationalistic reactions to migration and other crises. He renewed warnings that Europe is on its "last chance", even if he still hoped it was not "at the beginning of the end".

Webmaster's Commentary: 

"... incoherent, nationalistic reactions to migration..."!?!?!?!?

A short memo to EU chief executive Jean-Claude Juncker: you have personal protection of armed, crack shots 24/7 at your beck and call, to diffuse any threat to you whatsoever; you, sir, have obviously forgotten what it is like to be without this resource.

As reported at http://townhall.com/tipsheet/katiepavlich/2016/01/07/muslim-male-refugee...

Two weeks ago the New York Times ran a story about the need to host classes in Norway and Denmark for Muslim men new to the country. The topic? Rape is wrong and unacceptable. A course manual sets out a simple rule that all asylum seekers need to learn and follow: “To force someone into sex is not permitted in Norway, even when you are married to that person.” In Denmark, lawmakers are pushing to have such sex education included in mandatory language classes for refugees. The German region of Bavaria, the main entry point to Germany for asylum seekers, is already experimenting with such classes at a shelter for teenage migrants in the town of Passau. Now, Germany is facing the same type of rape epidemic as progressive politicians continue to allow thousands of refugees, many of whom are military aged males, into the country. During New Years Eve celebrations in the western city of Cologne, dozens of Muslim men allegedly participated in rape mobs. They surrounded young women, touched them, raped them and stole their wallets and cell phones. Tensions surrounding how the situation is being handled are rising by the day. From ABC News: A string of sex assaults and robberies during New Year's celebrations in Germany has fuelled debate about the country's ability to integrate large numbers of migrants, after police said that men who targeted dozens of women in the western city of Cologne appeared to be of "Arab or North African origin."

As reported at http://www.dailymail.co.uk:

Vienna's police chief advises women not to go out on the streets alone Cologne police chief Wolfgang Albers relieved of his duties over handling of New Year's Eve sex attacks

Sir, these attacks were real. The women being attacked do not have the luxury of having armed guards around them, 24/7, as you do. So please, when in your definition, does the outrage at such attacks, which has been clearly stated, become "incoherent"?!?

Because in the lexicon of the average European citizen, outrage at these attacks is justified. They shouldn't have happened in the first place.

So the question is, just what is the EU going to do to prevent this kind of behaviour on the part of Middle Eastern and African immigrants?!?

Of course, what you won't do is try to apply at least some pressure to the US to stop its destabilizations of the Middle Eastern countries in which it wants to create regime change, which is causing this river of migration in the first place.

Because if the EU is impotent to stop it, the EU does not have a moral right (or ability) to exist: it is just that simple.

Jan 18 12:07

Can Mathematicians Forecast Markets?

Jan 18 12:06

The 62 Richest People Have as Much Wealth as Half the World

And the Top 1% own more than everyone else combined… -- The world’s 62 richest billionaires have as much wealth as the bottom half of the world’s population, according to a new report from Oxfam International.

Jan 18 11:58

The Financial Apocalypse Accelerates As Middle East Stocks Crash To Begin The Week

It looks like it is going to be another chaotic week for global financial markets. On Sunday, news that Iran plans to dramatically ramp up oil production sent stocks plunging all across the Middle East. Stocks in Kuwait were down 3.1 percent, stocks in Saudi Arabia plummeted 5.4 percent, and stocks in Qatar experienced a mammoth 7 percent decline.

Jan 18 11:54

Price of North Dakota Oil Drops Below Zero

Company Flint Hills Resources agreed to buy oil grade North Dakota Sour, if they will pay -$0,5/bbl., reports Bloomberg with reference to the corporate price list. In January 2014, this brand cost $47.6, but by January 2015 fell to $13.5/bbl. North Dakota Sour is extremely low grade with high sulphur content. As was stated by the Executive Vice President of the Dallas company 'Turner Mason', John Auers, in 2011, the company ceased to provide Enbridge with a pipeline for sour crude and needed to take out cargo and rail transport, which significantly increased costs...

Jan 18 11:51

French president declares economic emergency

French President Francois Hollande pledged Monday to redefine France’s business model and declared what he called “a state of economic and social emergency,” unveiling a 2-billion-euro ($2.2 billion) plan to revive hiring and catch up with a fast-moving world economy.

Jan 18 11:51

Iran offers huge investment potential as sanctions lifted

Muscat: A vast array of opportunities for trade and investment, especially in the car industry, will be presented at Iran’s second solo exhibition, which will be held in Muscat from January 26 to 30.

This year’s exhibition will be held in a totally different environment considering the lifting of the economic sanctions on Iran, Ali Akbar Sibeveih, the Iranian ambassador to the Sultanate, told Times of Oman in an exclusive interview.

One of the matters of concern in Iran’s first solo exhibition in Muscat last year was the restrictions on financial transactions with Iran which has been resolved now, the official said after the announcement of the ‘implementation day’ of the nuclear agreement reached between Iran and global powers.

Jan 18 11:48

In Israel, Abbott affirms block on Iran investments

AUSTIN -- Texas Gov. Greg Abbott on Monday called for the state's policy against investing public funds in Iranian stocks to be expanded, during a meeting with Israeli prime minister Benjamin Netanyahu.

In Israel as part of a trip abroad to encourage foreign trade and investment in the Lone Star State, Abbott told Netanyahu that he will seek the passage of a new law during the next legislative session to prohibit all state agencies and local governments from investing in Iran, and require existing investments to be divested.

(*no tag for DUMB@$$ , or MISSED OPPORTUNITY )

Jan 18 11:46

Analyst Predicts Massive Bailouts For Main Street: “Money Will Be Printed Out Of Thin Air And Given To You” : The Deflation Monster Has Arrived (And it sure looks angry)

Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.

Jan 18 11:41

THE CITADEL IS BREACHED: CONGRESS TAPS THE FED FOR INFRASTRUCTURE FUNDING

In December 2015, however, a compromise was finally reached. On December 4, the last day the Department of Transportation was authorized to cut checks for highway and transit projects, President Obama signed a 1,300-page $305-billion transportation infrastructure bill that renewed existing highway and transit programs. According to America’s civil engineers, the sum was not nearly enough for all the work that needs to be done. But the bill was nevertheless considered a landmark achievement, because Congress has not been able to agree on how to fund a long-term highway and transit bill since 2005.

That was one of its landmark achievements. Less publicized was where Congress would get the money: largely from the Federal Reserve and Wall Street megabanks. The deal was summarized in a December 1st Bloomberg article titled “Highway Bill Compromise Would Take Money from US Banks”:

Webmaster's Commentary: 

Good, if it happens. And remember: the banks comprising the Federal Reserve pay absolutely no taxes whatsoever.

Jan 18 11:35

USDA Revokes Grass Fed Meat Labeling Standard

A decision this week by the U.S. Department of Agriculture (USDA) is about to make meat labeling more confusing for farmers and consumers. On Tuesday, January 12, the USDA Agricultural Marketing Service (AMS) rescinded the labeling standard for grass fed meat, which was developed over the course of four years and finalized in 2006 with the support of national farm and consumer organizations, including NSAC.

Jan 18 11:07

Venezuela declares ‘economic emergency’ amid currency woes

Venezuela’s socialist government decreed an “economic emergency” on Friday that will expand its powers and published the first data in a year that shows the depth of a recession fueled by low oil prices and a sputtering state-led model.

The central bank, which has been lambasted by critics of President Nicolas Maduro’s government for hiding statistics since the end of 2014, said the South American OPEC nation’s economy shrank 4.5 percent in the first nine months last year.

Inflation soared in that period to an annual rate of 141.5 percent, the world’s worst.
Venezuela’s oil-dependent economy is forecast to perform abysmally again in 2016. Maduro lost control of the National Assembly in a December election due to voter ire over the crisis.

The government’s decree, which the opposition-led assembly says it has the power to approve or reject, sets a 60-day “economic emergency” and would give Maduro wider powers to intervene in companies or limit access to currency.

Webmaster's Commentary: 

The problem of being a "one trick pony" economy (i.e., dependent on the production, and price of only one commodity), when that commodity degrades in price, it takes the entire economy with it.

Venezuela may very well default on its international debts, and that would add to the economic misery of both individuals and Venezuela corporations in this country by orders of magnitude.

Jan 18 11:07

Sanders embarsses Clinton over shameless Wall St connections

Democratic candidate Bernie Sanders gave frontrunner Hillary Clinton a piece of his mind in the most vigorous of their four presidential debates, accusing her of cozying up to Wall Street and accepting hundreds of thousands of dollars from big banks.

Jan 18 11:04

No joke! Gas is 47 cents per gallon in one Michigan town

An apparent gas war has forced the cost of a gallon of gasoline to plummet to some jaw dropping lows.

Jan 18 10:59

The Financial Apocalypse Accelerates As Middle East Stocks Crash To Begin The Week

It looks like it is going to be another chaotic week for global financial markets. On Sunday, news that Iran plans to dramatically ramp up oil production sent stocks plunging all across the Middle East. Stocks in Kuwait were down 3.1 percent, stocks in Saudi Arabia plummeted 5.4 percent, and stocks in Qatar experienced a mammoth 7 percent decline. And of course all of this comes in the context of a much larger long-term decline for Middle Eastern stocks.

Jan 18 10:38

WHAT'S ERODING THE MIDDLE CLASS?

There are five primary drivers of this erosion in my view:

1. The shifting of pension and healthcare costs/risks from the state and employers to employees

2. The decline of scarcity value to labor in general and specifically in college degrees that were once the guaranteed ticket to middle class security

3. The inexorable rise in big-ticket costs: higher education, healthcare and housing. Even as wages stagnate, these costs continue rising. claiming an ever-larger share of household incomes, leaving less to save/invest.

4. The transition from an economy with stable returns to a financialized boom-and-bust economy that wipes out middle class wealth in the busts but doe not rebuild it in the booms.

5. The regulatory and administrative barriers to self-employment in a globalized economy.

Webmaster's Commentary: 

The fact that no matter which party "mascot" gets elected (as all candidates are owned by the criminal banking class and the major corporations), the offshoring/outsourcing of American jobs continues apace, with no real remedy in sight.

Jan 18 10:32

Puerto Rico isalready in the midst of an economic collapse

Although there are many ways this crisis could escalate further, it is clear that Puerto Rico is
already in the midst of an economic collapse. As part of the Administration's longstanding
engagement with the Commonwealth, I will meet with community and business leaders in Puerto
Rico on the immense challenges the Commonwealth faces, and at Treasury we will continue to
bring our full capabilities to bear in the provision and delivery of assistance to Puerto Rico. But
our existing tools are not sufficient for a comprehensive solution.

Puerto Rico is already in default. It is shifting funds from one creditor to pay another and has
stopped payment altogether on several of its debts. As predicted, creditors are filing lawsuits.
The Government Development Bank, which provides critical banking and fiscal services to the
central government, only avoided depleting its liquidity by halting lending activity and sweeping

Webmaster's Commentary: 

So, what precisely does Secretary Lew wish Congress to do to save Puerto Rico's economy, when the horrific economic conditions there having been created by its own officials' lack of intelligent money management and corruption?!?

Lew talks about debt restructuring, but what does that actually mean?!? And will Puerto Rico actually be able to do that, even with intense oversight?!?

IF Puerto Rican leadership were smart, they would invoke the Iceland model, where the odious debt was declared non-payable, and the bankers and politicians who put the country in this mess should be put in jail.

But that is something Lew just doesn't want to see happen, or remind Americans just how well that worked in Iceland.

Jan 18 10:29

RISE OF THE ROBOTS WILL ELIMINATE MORE THAN 5 MILLION JOBS

Over five million jobs will be lost by 2020 as a result of developments in genetics, artificial intelligence, robotics and other technological change, according to World Economic Forum research. About 7 million jobs will be lost and 2 million gained as a result of technological change in 15 major developed and emerging economies, WEF founder Klaus Schwab and managing board member Richard Samans said in "The Future of Jobs." The findings are taken from a survey of 15 economies covering about 1.9 billion workers, or about 65 percent of the world’s total workforce.

Jan 18 10:28

Walmart Closes LA Store Over $15 Minimum Wage

Jan 18 10:07

European Stocks Set To Plunge Lower?

Jan 18 09:02

How the Anti-American Left Funds #BlackLivesMatter And Why They Are Doing It Now

Ever wonder how the #BlackLivesMatter terrorists and provocateurs are able to stay so fat and sleek without any apparent source of income? Sure, some celebrites, like Beyonce and Jay Z, are donating to the cause. But celebrity contributions are never going to provide either the volume or reliability of cash flow that such a movement needs. The main source of funding is the vast array of “philanthropies” affiliated with the anti-American left are starting to pour money into the movement.

Jan 18 08:56

Dutch begin looking for trade opportunities in Iran

Now that the economic sanctions against Iran are lifted, Dutch companies are starting to look for trade opportunities with the Middle Eastern country. Although Minister Lilianne Ploumen of Foreign trade warns that companies will still face obstacles in Iran, there is much expectation for the opening of the market, broadcaster NOS reports.

“Iran’s economy is simply too large to ignore, with the oil, gas and financial reserves” >>>

Jan 18 08:49

Glitches reject 6,200 MinnesotaCare enrollees

Statewide, around 90,000 MinnesotaCare customers were up for renewal at the end of December. Of those, about 2,380 cases didn’t get their paperwork processed in time because of a backlog at DHS — so the department’s computer system automatically sent out the cancellation letters. Additionally, some 3,800 weren’t processed because of a technical glitch in the software that handles MinnesotaCare renewals.

Jan 18 08:47

FTSE back in the red amid global sell-off sparked by oil plunging below $28 a barrel - live

Japanese stocks hit one-year low on Monday morning after Middle East saw more than £27bn wiped off stocks as Tehran enters oil war

Webmaster's Commentary: 

Everyone (except Israel and their servants in Congress) are happy that Iran is complying with the P5+1 and war has been averted. But admittedly the dropping of sanctions has arrived at a very bad time for the petrodollar.

Jan 18 08:45

Why are we looking on helplessly as markets crash all over the world?

The imminent collapse of the Chinese Ponzi-scheme economy shows that we need to bring control to the international economy

Jan 18 08:45

Cracks At The Core Of The Core

January 15 – Bloomberg (Matthew Boesler): “The U.S. economy should continue to grow faster than its potential this year, supporting further interest-rate increases by the Federal Reserve, New York Fed President William C. Dudley said. ‘In terms of the economic outlook, the situation does not appear to have changed much” since the Fed’s Dec. 15-16 meeting, Dudley said, in remarks prepared for a speech Friday… He added that he continues ‘to expect that the economy will expand at a pace slightly above its long-term trend in 2016,’ and said future rate increases would depend on incoming economic data.”

Webmaster's Commentary: 

Denial is not just a river in Egypt!

Jan 18 08:44

TO PUT BANKERS BEHIND BARS, SPANISH CITIZENS TAKE THE 1% TO COURT

Elites regularly profit with impunity from financial corruption. This is clearly demonstrated by the numerous billion-dollar financial scandals in recent years, including LIBOR rate fixing, tax evasion, commodity price fixing and financial mis-selling schemes. The political power of finance and its revolving door into government makes many bankers seem above the law. But this immunity is not unbreakable, as demonstrated by the wave of Spanish citizens now leading an anti-corruption charge unlike any that has come before.

Jan 18 08:42

"China Banks Seem To Be Doing Whatever They Can To Avoid Paying Anyone In Dollars"

Chinese investors that have secured all necessary approvals to invest in American companies are not being allowed to actually make that investment. I mentioned this to a China attorney friend who says he has been hearing the same thing. Never heard this one until this month.

Jan 18 08:41

Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure

When Wells Fargo reported its Q4 earnings last week, the one topic analysts and investors wanted much more clarity on, was the bank's exposure to oil and gas loans, and much more color on its energy book over concerns that Wells, like most of its peers, was underestimating the severity of the upcoming shale default wave.

Jan 18 08:40

Foreign Central Banks Furiously Dump US Treasuries: Record $47 Billion Sold In First Two Weeks Of 2016

It's not just stocks have a terrible start to the year, in fact the worst start in history: so is the amount of US Treasuries held in custody at the Fed, a direct proxy for the holdings of foreign central banks, reserve managers and sovereign wealth funds who park owned TSYs at the NY Fed for convenience.

According to the latest Fed data, after a drop of $12 billion in the first week of the year, another $34.5 billion in Treasuries held in custody was sold in the week ended January 13, bringing the total to just $2.962 trillion, below the previous recent low recorded in early November, and at levels not seen since April 2015.

Indicatively since April, total US Treasury holdings have increased by $570 billion, meanwhile not a single incremental dollar has ended up in the Fed's custody account.

Jan 18 08:40

Japanese Stocks Enter Bear Market, Credit Risk Surges To 20-Month Highs

"It’s difficult to see the fall stopping today," warned one Japanese equity strategist and rightly so as Japan's broad TOPIX idnex just entered a bear markets (down 20% from the August 2015 highs). With the Nikkei well below 17,000, Kuroda is due to speak at the Diet today as Japanese corporate bond risk surges to 20-month highs.

Jan 18 08:39

The Fed's Stunning Admission Of What Happens Next

Following an epic stock rout to start the year, one which has wiped out trillions in market capitalization, it has rapidly become a consensus view (even by staunch Fed supporters such as the Nikkei Times) that the Fed committed a gross policy mistake by hiking rates on December 16, so much so that this week none other than former Fed president Kocherlakota openly mocked the Fed's credibility when he pointed out the near record plunge in forward breakevens suggesting the market has called the Fed's bluff on rising inflation.

All of this happened before JPM cut its Q4 GDP estimate from 1.0% to 0.1% in the quarter in which Yellen hiked.

Webmaster's Commentary: 

These sorts of major goofs happen when you start to believe your own propaganda!

Jan 18 08:38

The Citadel Is Breached: Congress Taps the Fed for Infrastructure Funding

In a landmark infrastructure bill passed in December, Congress finally penetrated the Fed’s “independence” by tapping its reserves and bank dividends for infrastructure funding.
The bill was a start. But some experts, including Congressional candidate Tim Canova, say Congress should go further and authorize funds to be issued for infrastructure directly.

Webmaster's Commentary: 

This could be the start of a move to nationalize the FED!

Jan 18 08:38

Paul Vernon, Cryptsy’s CEO, Seems To Have Flown To China

Bitcoin News Channel has just managed to dig up exclusive news regarding Cryptsy, the cryptocurrency exchange whose customers are currently unable to withdraw their coins out of its platform. Paul Vernon, the CEO of Cryptsy, seems to have just flown to Liaoning, China, according to an IP and geolocation report that has just been sent to Bitcoin News Channel BNC an hour ago.

Jan 18 08:34

Masters customers would be sad to see it close

Australia: Arthur Ritchie will be one of those mourning the closure of Masters. While investors cheer the decision from Woolworths to finally cut the troubled business loose, its customers were sad to hear it might shut its doors.

Mr Ritchie, a 72 year old plumber from Box Hill in Melbourne's east, preferred Masters saying it was cheap and quick

"I'd be back to what I'm used to – a lot of travelling – a lot of wasted time whereas now we can have that very quick trip and we can get what we want,"

(*Even in Australia it's "F" the little guy consumer , and do for the fat cat investors .)

Jan 18 08:12

Russia Breaking Wall St Oil Price Monopoly

Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy.
First appeared: http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-mo...

Jan 18 08:10

British steel industry enters 'death spiral' after another 1,000 jobs are axed

Tata Steel will cut 750 jobs at the UK's largest steel works in Port Talbot, South Wales as well as 200 in support functions and 100 at four other mills.

Since August 5,000 steel workers have been made redundant - one in six jobs in the industry - as it struggles to cope with rising energy costs and a glut of cheap Chinese imports.

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