ECONOMY | WHAT REALLY HAPPENED


ECONOMY

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.

Jan 18 07:47

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

According to the latest Fed data, after a drop of $12 billion in the first week of the year, another $34.5 billion in Treasurys 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. Adding up the flows from the first two weeks of the year reveals the worst and most custody holdings "outflowing" start to the year in history.

Jan 18 07:11

IS THERE A GLOBAL FINANCIAL CRISIS COMING?

Jan 18 07:02

Big banks brace for oil loans to implode

Now that the oil glut has caused prices to crash below $30 a barrel, turmoil is rippling through the energy industry and souring many of those loans. Dozens of oil companies have gone bankrupt and the ones that haven’t are feeling enough financial stress to slash spending and cut tens of thousands of jobs.

Jan 18 06:39

Gas drops to under 80-cents a gallon in Michigan

According to GasBuddy it appears these stations are currently the first stations in the country to see prices under $1 per gallon in years. As the situation unfolds, it’s possible these stations re-raise prices back over $1/gallon.

Jan 18 06:14

What's Eroding the Middle Class?

Jan 18 05:48

THE NORTH DAKOTA CRUDE OIL THAT'S WORTH LESS THAN NOTHING

Oil is so plentiful and cheap in the U.S. that at least one buyer says it would need to be paid to take a certain type of low-quality crude. Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it would pay -$0.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a list price posted on its website. That’s down from $13.50 a barrel a year ago and $47.60 in January 2014.

Jan 18 05:47

FRENCH PRESIDENT DECLARES ECONOMIC EMERGENCY

French President Francois Hollande has declared what he called "a state of economic emergency" and says it's time to redefine France's economic and social model. Hollande laid out a series of proposed economic measures Monday in an annual speech to business leaders to boost long-stagnant French growth and reduce chronic unemployment.

Jan 17 19:32

Jack Lew: Puerto Rico is in Economic Collapse But Things Could Get Even Worse

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... 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 in additional deposits from other Puerto Rico governmental entities. A large debt payment of $400 million is due on May 1, and a broader set of payments are due at the end of June.

Jan 17 19:26

Conspiracy Truth

What the Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect. – Richard Fischer, former Dallas Fed President on CNBC (via Zerohedge)

It is absolutely mind-blowing that this statement by a former Fed bank President did not get widespread coverage by the entire financial and general news media. This is a senior Fed official admitting that the Federal Reserve rigged the stock market. Stop and think about for a moment.

Jan 17 19:24

Real Time Currency Collapse In Canada – This Is What It’s Going To Look Like In the USA

Canadians took to twitter this week to share their collective horror over the rising cost of food. Cucumbers are $3 each. A head of cauliflower is $8. A large container of pepper cost $19 and some Canadians are paying $16 for a single bell pepper. A container of laundry detergent is $32.

This gives us a pretty good idea what would happen in the US, even if there was a minor shock to the value of the dollar. Despite the rising cost of goods and services, our currency has been doing really well on the global stage for the past two years. I shudder to think of what will happen when our economy runs into another recession, which we are way overdue for. When it does hit, the cost of our imports will rise the most, much like they have in Canada.

Jan 17 19:18

Fracking hell: BHP Billiton takes $7bn hit

It's not so many years that investing a few billion in the swanky new technology of fracking must have seemed like a great idea. Sure, blowing a high-pressure cocktail of water, sand and chemicals at an awkward angle deep into barely accessible, dense subterranean rock formations isn’t exactly a cheap way of getting oil, but at over $100 (£69) a barrel who cares? Now that crude’s dipping below $30, presumably BHP Billiton does.

The commodities giant just announced a $7.2bn pre-tax impairment on the substantial portfolio of onshore American shale oil rigs it developed from 2011 onwards. These are now valued at approximately $16bn. It follows the company having to revise its price assumptions for oil and gas downwards again, as the price war between Saudi-led OPEC and frackers like BHP rages on.

Jan 17 19:10

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.

Jan 17 18:38

Revealed: the hidden web of big-business money backing Europe and America's pro-TTIP "think tanks"

The Transatlantic Trade and Investment Partnership is an EU-US "trade agreement" that will allow corporations to sue governments in secret tribunals to force them to repeal their safety, environmental and labor laws. TTIP's most influential backers are supposedly neutral think tanks that

Jan 17 18:21

Hang Seng drops 200 at open

Jan 17 18:18

Richest 62 people own as much wealth as half the world's population, says Oxfam

The wealthiest 62 people now own as much wealth as half the world's population, some 3.5 billion people, as the super-rich have grown richer and the poor poorer, international charity Oxfam said early Monday in London.

The wealth of the richest 62 people has risen by 44 per cent since 2010, while the wealth of the poorest 3.5 billion fell 41 per cent, Oxfam said in a report released ahead of the World Economic Forum's annual meeting in Davos, Switzerland.

Jan 17 18:16

Iran sanctions: Middle East stock crash wipes £27bn off markets as Tehran enters oil war

Prospect of the Islamic Republic pumping an additional 500,000 barrels a day sends stock markets in Dubai and Saudi Arabia into tailspin

Jan 17 18:10

THIS IS IT. COLLAPSE IS HERE. -- BILL HOLTER

Jan 17 17:23

Nikkei drops 300 at open.

Jan 17 17:09

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

Right now we are about halfway through January, and this is the worst start to a year for stocks ever. The Dow is down a total of 1,437 points since the beginning of 2016, and more than 15 trillion dollars of stock market wealth has been wiped out globally since last June. Unfortunately, there are still a lot of people out there that are in denial.

Jan 17 17:01

Fed's Denial Risks More Than Its Credibility

Jan 17 14:11

El-Erian: No, this isn’t 2008, but…

Jan 17 13:53

Keiser Report: Class, Financial Warfare

Max Keiser and Stacy Herbert discuss the geniuses calling for World War III, while the debt refugees caused by the financial and class war raging in the economy swamp the global financial markets with volatility and instability. In the second half, Max interviews Reggie Middleton about Pathogenic Finance: The autonomous, anti-fragile, trustless paradigm shift transforming banking, brokerage, securities and insurance

Jan 17 13:24

The Dow and 15940

Jan 17 13:19

In War Games, Navy SEALs Normalize Treating U.S. Citizens as Enemy

United States Navy SEALs planned war games in the state of Washington for mid-January, where they would encroach upon residential areas, state parks, national parks, etc, without the consent of the public. The war games treat citizens as pawns because SEALs were trained to react to citizens as potential terrorists.

One of the most alarming aspects of the war games, which were reported on by Truthout journalist Dahr Jamail, is how it normalizes the idea that U.S. citizens can be enemies. The war games suggest a future where many more military exercises run roughshod over public spaces and soldiers simulate how citizens could pose a danger to them.

Jan 17 11:49

This land is our land: American democracy, at a theater near you

Democracy has been projected on to a fictitious screen of good guy and bad guys. The people watch as impotent spectators, no longer even aware of the real story out there.

Ever since armed white ranchers took over federal property in Oregon the unfolding drama has resembled a parody of a Hollywood Western. Trouble is, no-one is quite sure who’s wearing the white hats as opposed to the black ones.

Jan 17 11:12

Walmart to fire 16,000 people!

Jan 17 10:54

Congress Says Lying Is Legal

reasons to doubt official stories

Jan 17 10:48

They Don’t Want Your Genes in the Pool: A Brief History of Eugenics

“The thing that really is trying to tyrannize through government is Science. The thing that really does use the secular arm is Science. And the creed that really is levying tithes and capturing schools, the creed that really is enforced by fine and imprisonment, the creed that really is proclaimed not in sermons but in statues, and spread not by pilgrims but by policemen—that creed is the great but disputed system of thought which began with Evolution and has ended in Eugenics." - G.K. Chesterton, Eugenics and Other Evils: An Argument Against the Scientifically Organized State

Jan 17 10:06

German Farmers Association Demands End to Sanctions on Russia

German farmers have lost 1 billion Euros so far - whether German agriculture can even win back the market it has lost in Russia as a result of sanctions is an open question

Jan 17 10:05

The Psychology of Climate Change Hysteria

religion and the state reinforce each other
climate science and the state reinforce each other

Jan 17 10:02

Iran Unleashes Oil Flood, Will Quintuple Crude Revenue In 2016

On Saturday, Iran marked what President Hassan Rouhani called a “golden page” in the country’s history when the IAEA ruled that Tehran had stuck to its commitments under last year’s nuclear accord.

Moments after the ruling was handed down, the US and the EU each lifted nuclear-related financial and economic sanctions on the “pariah state,” much to the chagrin of Israel and Tehran’s regional rivals who view the West’s rapprochement with the Iranians with deep suspicion.

"Everybody is happy except the Zionists, the warmongers who are fuelling sectarian war among the Islamic nation, and the hardliners in the U.S. congress,” Rouhani said, referring directly to Israel, the Saudis, and GOP lawmakers in the US.

Webmaster's Commentary: 

The timing is, sadly, a bit awkward, as Iran's oil flooding into the market will push oil prices lower. Things would be a lot better of the Congress hadn't been trying to enforce Israel will against Iran all along.

Jan 17 09:36

SAUDI ARABIA IS BUYING UP AMERICAN FARMLAND TO EXPORT AGRICULTURAL PRODUCTS BACK HOME

Saudi Arabia and other Persian Gulf countries are scooping up farmland in drought-afflicted regions of the U.S. Southwest, and that has some people in California and Arizona seeing red.

Saudi Arabia grows alfalfa hay in both states for shipment back to its domestic dairy herds. In another real-life example of the world’s interconnected economy, the Saudis increasingly look to produce animal feed overseas in order to save water in their own territory, most of which is desert.

Privately held Fondomonte California on Sunday announced that it bought 1,790 acres of farmland in Blythe, California — an agricultural town along the Colorado River — for nearly $32 million. Two years ago, Fondomont’s parent company, Saudi food giant Almarai, purchased another 10,000 acres of farmland about 50 miles away in Vicksburg, Arizona, for around $48 million.

Webmaster's Commentary: 

And yet there is absolutely no regulation against this, while California and Arizona farmers are desperately hurting for water?!?

Something here is absolutely, completely wrong, because it is California and Arizona aquifers generally providing the water needed to grow the alfalfa Saudi Arabia is shipping back home.

Jan 17 09:30

Irresponsible Iran Bashing Continues

Paul Ryan, Marco Rubio, Jeb Bush, Donald Trump, Ben Carson, and Hillary Clinton all whine on demand

Jan 17 09:26

Israeli and AIPAC Big Lies About Iran’s Intended Use of Unfrozen Assets

If you give money to banksters - they'll do evil things with the money! you should give it to us! :-D

Yep, any minute now the trillions will flow in...

Jan 17 08:40

The Top Forecaster Of The Canadian Dollar Sees The Loonie Falling To 59 Cents By The End Of The Year

Our loonie is heading for a record low with the central bank poised to cut interest rates again as commodity prices collapse to the lowest since 1991, manufacturing stalls and consumers remain buried in debt, according to the currency’s top forecaster.

The currency will fall to a record low 59 U.S. cents by the end of 2016, Macquarie Group Ltd.’s David Doyle, Bloomberg’s top-ranked forecaster for the Canadian dollar last year, said.

A 59 U.S. cent loonie would mean one U.S. dollar buys C$1.6949. Doyle said that once the currency reaches its record low, it will stay depressed through the end of 2018.

Jan 17 08:18

How Iran’s economy will look after 'Implementation Day'

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The much-anticipated termination of the sanctions will uplift Iran’s trade ties with the world and ensure that more than a decade of its political and economic isolation has at last come to a closure.
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The elimination of these disconcerting punitive measures means that Iran should brace for a revolutionary transformation of its dilapidated economy.
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Prior to the imposition of the most virulent sanctions on the Persian Gulf nation in 2012, which mostly hit its oil and gas sector, Iran was the world’s 13th largest economy, with an all-time high GDP of $576 billion in 2011. It experienced staggering recession after the EU’s oil embargo, and is now predicted to rise phenomenally from the ashes of isolation, featuring itself as the “world’s last major frontier market” opening up in 2016.

Jan 17 08:10

Banks give back China investment quotas as clients bypass the middlemen

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While China's move to open up its capital markets and allow its currency to trade more freely has created opportunities for global banks, these developments are also threatening to kill off niches where they have acted as middlemen to give previously excluded foreign investors backdoor access to the mainland.

Several banks, including Barclays, Commerzbank , Norway's SEB and the Netherlands' ING , handed back just over $800 million in quota granted by Chinese authorities under the Qualified Foreign Institutional Investor (QFII) scheme between April and September 2015, public data shows.
***
The move does not reflect a waning appetite for investment in China, however, despite its slowing economy; overall quotas for QFII have quadrupled to about $81 billion since 2010.

Jan 16 17:24

Australian dollar tumbles to lowest since 2009, global stocks plunge

It was widely reported in the last half of 2015 that Funds on Wall St. were cashing out predicting a crash in 2016.
The only currency holding value against the $US is the Euro. Gold dropping below $1100/oz and silver below $14/oz despite record sales. Oil prices below the cost of production. China's market is crashing despite economic growth of 7%/pa.

It's looking like a good year for buying, for the chosen few who get free money from the Fed.

Jan 16 17:09

Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears

Earlier this week, before first JPM and then Wells Fargo revealed that not all is well when it comes to bank energy loan exposure, a small Tulsa-based lender, BOK Financial, said that its fourth-quarter earnings would miss analysts’ expectations because its loan-loss provisions would be higher than expected as a result of a single unidentified energy-industry borrower.

Webmaster's Commentary: 

Best guess: one of the major shale oil companies has been slammed by falling oil prices.

Jan 16 17:02

Aw you poor things : World’s Richest Down $305 Billion as Markets Extend Global Rout

The billionaires lost more than $115 billion this week, with 76 taking hits of at least $1 billion in January, according to the Bloomberg Billionaires Index. Seven shed more than $1 billion on Friday alone as the Dow Jones Industrial Average sank 391 points, European stocks fell into a bear market and the Shanghai Composite Index wiped out gains from an unprecedented state-rescue campaign.

Jan 16 16:24

False Profits

One problem here is that GDP itself is a political construction. Forecasting the future is hard enough when you actually understand what you are forecasting. What happens when the yardstick itself keeps changing shape? You get meaningless forecasts. But this doesn’t stop the Fed from trying.

Jan 16 12:10

The Money Masters - Full Documentary (1996)

Jan 16 11:25

The Ascendance of Sociopaths in U.S. Governance

As any intelligent observer surveys the world’s economic and political landscape, he has to be disturbed - even dismayed and a bit frightened - by the gravity and number of problems that mark the horizon. We’re confronted by economic depression, looming financial chaos, serious currency inflation, onerous taxation, crippling regulation, a developing police state, and, worst of all, the prospect of a major war. It seems almost unbelievable that all these things could affect the U.S., which historically has been the land of the free.

How did we get here?

The reason is that a certain class of people - sociopaths - are now fully in control of major American institutions. Their beliefs and attitudes are insinuated throughout the economic, political, intellectual, and psychological/spiritual fabric of the U.S.

Webmaster's Commentary: 

The problem, as defined in the last paragraph stated here, is that the process of dictatorship has well and truly been engraved into law already; between the Patriot Act; the Homeland Security Act; the NDAA, the freedoms which used to be afforded to American citizens have been eviscerated to almost the point of non-existence.

9/11 was the apex of this manufactured changed, from a governmental managed and staged event, which was the horrific destruction of lives and buildings on that terrible day. It was all a fake, and a fraud, through which to "shock and awe" the American people into the cowed acceptance of the "big brother surveillance state", and lay the ground work for infinite, endless wars, ultimately for private profit.

I know I sound like a chipped CD on this, but people with intelligence, skills and kids, please get out of this country before it is too late; the window for such an action is narrowing exponentially.

Jan 16 10:50

What Accounts for the Saudi Regime’s Hysterical Belligerence? The Agony of Death

The Saudi rulers find themselves in a losing race against time, or history. Although in denial, they cannot but realize the historical reality that the days of ruling by birthright are long past, and that the House of Saud as the ruler of the kingdom by inheritance is obsolete.

This is the main reason for the Saudi’s frantically belligerent behavior. The hysteria is tantamount to the frenzy of the proverbial agony of a prolonged death. It explains why they react so harshly to any social or geopolitical development at home or in the region that they perceive as a threat to their rule.

Webmaster's Commentary: 

The question has to be asked regarding Saudi Arabia; after the House of Saud no longer governs one of the most oil-rich regions on the earth, what replaces it as a mechanism of government?!?

Jan 16 10:26

SECRETS OF THE FEDERAL RESERVE - PDF BOOK

Here are the simple facts of the great betrayal. Wilson and House knew that they were doing something momentous. One cannot fathom men’s motives and this pair probably believed in what they were up to. What they did not believe in was representative government. They believed in government by an uncontrolled oligarchy whose acts would only become apparent after an interval so long that the electorate would be forever incapable of doing anything efficient to remedy depredations.

Jan 16 09:55

Gold Stocks Hit Lowest Levels. Ever.

Jan 16 09:46

Petrodollar (USD) On Its Way Out

Jan 16 09:37

Credit Card Rates High? Try the Corporate-Owned Payday Loan Companies.

You pay banks to lend them your money – deposit charges. You pay them to keep and handle your money – service charges. You then pay them to withdraw your cash – ATM or counter withdrawal charges.

Meawhile, they lend out your money at usurious rates.

I Thought Jesus had thrown them out of the Temple, but it seems they now own it.

Jan 16 09:08

$19 Trillion National Debt Will Be Hit Soon

Jan 16 09:04

JP Morgan and RBS: sell stocks now

Jan 15 22:04

Closing the 'Collapse Gap': The USSR Was Better Prepared for Collapse than the US

Good evening, ladies and gentlemen. I am not an expert or a scholar or an activist. I am more of an eye-witness. I watched the Soviet Union collapse, and I have tried to put my observations into a concise message. I will leave it up to you to decide just how urgent a message it is.

My talk tonight is about the lack of collapse-preparedness here in the United States. I will compare it with the situation in the Soviet Union, prior to its collapse. The rhetorical device I am going to use is the "Collapse Gap" – to go along with the Nuclear Gap, and the Space Gap, and various other superpower gaps that were fashionable during the Cold War.

~ Dmitry Orlov

Jan 15 18:34

Welcome To The New Normal: The Dow Crashes Another 390 Points And Wal-Mart Closes 269 Stores

Did you know that 15 trillion dollars of global stock market wealth has been wiped out since last June?

Jan 15 17:53

Mining giant forced into second writedown in six months

Mining giant BHP Billiton will write down the value of its US shale assets by US$7.2 billion (NZ$11.19 billion) amid collapsing oil and gas prices and a gloomy short term outlook.

The company is also reviewing all further investment in its onshore US business, as it focuses on preserving cash to ride out the sharper-than-expected downturn.

"Oil and gas markets have been significantly weaker than the industry expected," chief executive Andrew Mackenzie said.

"While we have made significant progress, the dramatic fall in prices has led to the disappointing writedown announced today."

BHP said on Friday it expects to book the impairment charge in its half year results, its second writedown on the US oil and gas assets in six months. The assets will now be valued 30 per cent lower in its books, at US$16 billion.

Jan 15 16:21

Keiser Report: ‘Post-Traumatic Debt Disorder’

Max Keiser and Stacy Herbert discuss ‘post-traumatic debt disorder’ - which is seen as workers refuse to ask for wage increases, no matter how tight the labor market gets.

Jan 15 15:33

German Economic News Interviews Seymour Hersh on Obama’s Syria Policy

On January 14th, German Economic News interviewed the investigative reporter Seymour Hersh regarding Obama’s war against Syrian President Bashar al-Assad:

German Economic News: You recently issued a highly acclaimed essay in the London Review of Books in which you demonstrate that the US military was against the US invasion of Syria, but Obama didn’t listen to their advice. Why?

Jan 15 15:28

Welcome To The Recession: Industrial Production Crashes Most In 8 Years

There comes a time when you just have to admit you were wrong... You were wrong. Industrial Production plunged 1.8% year-over-year - the fastest pace of collapse since May 2008 and a level that has never not produced a recession.

Jan 15 15:27

S&P Enters The Latest European Scandal: Downgrades Poland From A- To BBB+

In other words, S&P is now nothing more than a lackey for Brussels, threatening to send Polish yields higher if Poland does not fall in line.

Jan 15 15:23

Here's A Chart You Won't See On CNBC

What goes up, comes down considerably faster.

For global stocks, Bloomberg notes, the way down ($15 trillion lost in 7 months) has been much easier than the climb up ($30 trillion added in 4 years).

Jan 15 15:01

Buddy, Can You Spare a Dime for a CEO?

Wall Street buccaneer Carl Icahn has pocketed billions for his himself over the years. But now he says he’s passionate about helping others.

In particular, the corporate-takeover specialist is pushing a charitable cause for people who, through no fault of their own, are being forced out of America.

Jan 15 14:39

Rosa Luxemburg Explains Capitalism Using Spoons

The inspiring life, engaging prose and intellectual prowess of Rosa Luxemburg leaps off the page through Kate Evans’ art in a new graphic biography of the revolutionary socialist. Red Rosa captures the many elements of Luxemburg’s life, from her economic theories to her constant opposition to war.

Jan 15 13:52

China's Haier buys GE's appliance unit for $5.4 billion

General Electric has sold its appliance business to Haier for $5.4 billion, a deal that will greatly expand the Chinese firm's footprint in the U.S.

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