Monetary Mumbo-Jumbo. Must read
2015 was supposed to be the year in which all the strands came together to create a real recovery, an environment in which rate hikes would be a certainty. But anyone who looks past the rosy rhetoric can see that the economy is currently in one of its weakest periods in years. The first few months of 2015 have seen more missed economic forecasts than any other comparable period since the depths of the Great Recession. Industrial production, retail sales, housing starts, just to name a few, are all continually weakening according to data from Reuters Polls, 3/18/15. In fact, the Atlanta Fed’s much talked about “GDPNow” data set, which was supposed to provide a fresh real-time look at the economy, is showing that the economy is growing at a paltry .3% annualized rate. While many people are blaming the result on the winter weather, much as they did last year, it is worthwhile to note that ice and snow in winter is not a new phenomenon.
Friday, March 27, 2015
Monetary Mumbo-Jumbo
Monetary Mumbo-Jumbo
By simultaneously claiming to be both aggressive and defensive, and to be moving forward even while standing still, Yellen positioned the Fed as being all things to all people, thereby igniting a rally in all asset classes at the same time. Stocks, bonds, gold, foreign currencies, all went up when Yellen took to the podium. While this may be the way to win friends and influence people on Wall Street, it’s no way to finally put the economy back on the path to a sustainable recovery.
By simultaneously claiming to be both aggressive and defensive, and to be moving forward even while standing still, Yellen positioned the Fed as being all things to all people, thereby igniting a rally in all asset classes at the same time. Stocks, bonds, gold, foreign currencies, all went up when Yellen took to the podium. While this may be the way to win friends and influence people on Wall Street, it’s no way to finally put the economy back on the path to a sustainable recovery.
The bottoms not in
The Bottom's Not In------Why This Market Is Dumber Than A Mule - Contra Corner PM Edition - March 26, 2015
March 26, 2015
To get the rest of the story visit Contra Corner.
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The Bottom's Not In------Why This Market Is Dumber Than A Mule
By David Stockman
They're trying to put in a bottom-----again! The sell-off earlier this week amounted to the sixth sizeable "dip" since November 20----so the market's ingrained reflex was back at work buying up the "bargains". But the roundtrip to the flat-line shown below is not a classic wall of worry and its not a "bottom" that's being put in. This market is dumber than a mule, and the nation's central bank and …
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Did you know Obama just took new executive action on immigration? | WashingtonExaminer.com
Did you know Obama just took new executive action on immigration? | WashingtonExaminer.com
Obama intends to make it easier to bring more foreign guest workers to the United States — likely at significant cost to workers already here — by loosening the rules governing something known as the L-1B visa program. Under the program, a multinational company with offices in the United States can move workers from abroad to live and work in the U.S. for as long as five years in what is known as an intra-company transfer. There are almost no rules concerning what those workers can be paid, so there is no barrier to a company firing American employees and bringing in workers from foreign facilities to replace them at much lower pay.
Obama intends to make it easier to bring more foreign guest workers to the United States — likely at significant cost to workers already here — by loosening the rules governing something known as the L-1B visa program. Under the program, a multinational company with offices in the United States can move workers from abroad to live and work in the U.S. for as long as five years in what is known as an intra-company transfer. There are almost no rules concerning what those workers can be paid, so there is no barrier to a company firing American employees and bringing in workers from foreign facilities to replace them at much lower pay.
Thursday, March 26, 2015
Where’s the Outrage?
Where’s the Outrage?
The common themes here are government spying and lawlessness. We now know that the Israelis spied on Secretary of State John Kerry, and so Netanyahu knew of what he spoke. We know that the Clintons believe there is a set of laws for them and another for the rest of us, and so Mrs. Clinton could credibly believe that her deception and destruction would go unpunished.
The common themes here are government spying and lawlessness. We now know that the Israelis spied on Secretary of State John Kerry, and so Netanyahu knew of what he spoke. We know that the Clintons believe there is a set of laws for them and another for the rest of us, and so Mrs. Clinton could credibly believe that her deception and destruction would go unpunished.
Friday, March 20, 2015
Boom Is Always Followed by Bust
Boom Is Always Followed by Bust
But unlike the financial media’s dopey dithering about “dot plots”, Yellen at least has something to hide behind all the gibberish. Namely, she and her merry band of money printers are becoming more petrified each month that they will trigger a thundering Wall Street hissy fit if they move to “normalize” interest rates—-even as they are slowly beginning to realize that continuance of ZIRP much longer will only intensify the market’s addiction to rampant speculation, free money carry trades and the associated risks to financial stability.
But unlike the financial media’s dopey dithering about “dot plots”, Yellen at least has something to hide behind all the gibberish. Namely, she and her merry band of money printers are becoming more petrified each month that they will trigger a thundering Wall Street hissy fit if they move to “normalize” interest rates—-even as they are slowly beginning to realize that continuance of ZIRP much longer will only intensify the market’s addiction to rampant speculation, free money carry trades and the associated risks to financial stability.
Thursday, March 19, 2015
US Power Elite Seeks Global Domination
US Power Elite Seeks Global Domination
Consider an Executive Order issued by Obama on March 9, 2015 that sanctions seven Venezuelans. Nothing in it that explains the sanctions has any credibility. It is totally a fog of propaganda and diversion from the actual goals that are never mentioned. The first sentence in the Fact Sheet is simply ridiculous and a total fabrication that no sensible person can possibly believe:
“President Obama today issued a new Executive Order (E.O.) declaring a national emergency with respect to the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the situation in Venezuela.”
The Economic War Against Russia
The Economic War Against Russia
It has been a year since the US economic war against Russia began by the West. Which objectives have been set and have they been achieved?
I would suggest the objectives have been three fold but in fact I would date the sanctions war from Friday August 30, 2013. This was when President Putin offered a peaceful alternative at the last moment to stop the US military operation against Bashar al-Assad and Syria that was within hours of starting. Surprisingly the US called off the attack and this set in motion a series of events contrary to the goals of the US administration. I believe both Russia and China covertly played the Treasury debt card in order to protect their client states, Syria and Iran, from the impending US invasion.
Habitual Stranger to the Truth
Habitual Stranger to the Truth
What if when she claimed her husband’s email server had never been hacked she didn’t know what she was talking about? What if victims can’t always tell when they’ve been hacked? What if the persons with whom she has been emailing have been hacked? What if one of her former aides — with the lurid nickname of the “prince of darkness” (real name: Sid Blumenthal) — was hacked? What if among the hacked emails of the Prince of Darkness were some to and from Clinton strategizing about the way to portray her role at the time of the assassination in Benghazi of the American ambassador to Libya?
What if all this lawlessness and secrecy was orchestrated by Clinton herself — a person devoid of a moral compass and disdainful of compliance with law and a habitual stranger to the truth? What if she is presently the leading candidate for the Democratic nomination for president? What if the Democrats don’t care?
The Empire Is Cracking Up
The Empire Is Cracking Up
Washington’s EU vassals might be finding their backbone. Britain, Germany, France, and Italy are reported to have defied Washington’s orders and applied to join the Chinese-led Asian Investment Bank. Australia, Japan, South Korea, Switzerland and Luxembourg might also join.
Washington uses its development banks such as the Asian Development Bank, the World Bank, along with the IMF, in order to exercise financial and political hegemony. These banks are crucial elements of American economic and political imperialism.
Will She or Won’t She?
Will She or Won’t She?
The Fed is simply biding its time until it unleashes QE4. “Everybody is operating on this false premise that we have a legitimate recovery and the Fed is going to raise rates. In fact, we have a bubble and not only will the Fed not raise rates, they will blow more air in the form of QE4.”
Friday, March 13, 2015
High-Intensity Walking
High-Intensity Walking
The program consisted of repeated intervals of three minutes of fast walking, aiming for an exertion level of about six or seven on a scale of one to 10, followed by three minutes of slow strolling. The results turned out to be very promising. As reported by the New York Times:1
“In their original experiment, the results of which were published in 2007, walkers between the ages of 44 and 78 completed five sets of intervals, for a total of 30 minutes of walking at least three times a week.A separate group of older volunteers walked at a continuous, moderate pace, equivalent to about a 4 on the same exertion scale.After five months, the fitness and health of the older, moderate group had barely improved. The interval walkers, however, significantly improved aerobic fitness, leg strength and blood-pressure readings.”
The Lying Fed
The Lying Fed
With the economy now clearly losing steam, based on the drop in GDP from 3rd to 4th quarters, and general macro data coming in very weak (Zero Hedge, 2/18/15), I believe the Fed wants desperately to move those goalposts. But after a series of seemingly strong jobs reports, culminating with a strong 295,000 jobs in February, the market expects that “patient” will soon disappear from the statement. The Fed wants to comply, thereby signaling that everything is fine. But at the same time it doesn’t want the markets to conclude that rate hikes are imminent when it does.
In other words, they are searching for a way to drop the word “patient” without communicating a loss of patience. What? This is like a driver telling other drivers that she plans on engaging her turn signal before making a left, but then wonders how to hit the blinker without actually creating an expectation that a turn is imminent.
El Commandante and the Killary Emails
El Commandante and the Killary Emails
By using her personal email address — @clintonemail.com — she kept her work documents from the government. Concealing government documents from the government when you work for it is a felony, punishable by up to three years in prison and permanent disqualification from holding public office.
Failing to secure classified secrets in a government-approved facility or moving them to a non-secure facility outside the government’s control is a misdemeanor, punishable by a hefty fine and a year in jail. Using a false email address that gives the clear impression that the user is not using a government server when she is, or one that creates the false impression that the emailer is using a government server when she is not, is also a felony.
USIS
USIS
Let’s be perfectly clear. The United States is not actually at war with ISIS. As Global Research director, economist and author Michel Chossudovsky plainly points out recently, Obama is simply waging “a fake war” against the Islamic State forces, putting on another propaganda show for mainstream media to keep his flock of American sheeple asleep in echo-chambered darkness. With a mere cursory review of recent historical events, one can readily realize that virtually everything Big Government tells us is happening in the world, you can bet is a boldface lie.
Let’s be perfectly clear. The United States is not actually at war with ISIS. As Global Research director, economist and author Michel Chossudovsky plainly points out recently, Obama is simply waging “a fake war” against the Islamic State forces, putting on another propaganda show for mainstream media to keep his flock of American sheeple asleep in echo-chambered darkness. With a mere cursory review of recent historical events, one can readily realize that virtually everything Big Government tells us is happening in the world, you can bet is a boldface lie.
Here Comes the Tax Per Mile
Here Comes the Tax Per Mile
Oregon – home of things uber trendy – has become the first state to begin dunning motorists by the mile rather than by the gallon.
The “pilot” program begins July 1 — and will be implemented by the Oregon DOT in partnership with something called Sanef ITS Technologies America and Intelligent Mechatronic Systems. Sounds a lot like Cyberdyne Systems from the Terminator movies, doesn’t it? And the similarities run a lot deeper than that.
Greece Is More Solvent Than the US
Greece Is More Solvent Than the US
“This declaration of national insolvency will, no doubt, shock those of you who use the officially reported federal debt as the measuring stick for what our country owes,” Kotlikoff told committee members who are considering President Obama’s proposed budget for Fiscal Year 2016.”After all, federal debt in the hands of the public is only 74 percent of GDP. Yes, this is double the debt-to-GDP ratio recorded a decade ago. But it’s still a far cry from Italy’s 135 debt-to-GDP ratio or Greece’s 175 percent ratio.”
“This declaration of national insolvency will, no doubt, shock those of you who use the officially reported federal debt as the measuring stick for what our country owes,” Kotlikoff told committee members who are considering President Obama’s proposed budget for Fiscal Year 2016.”After all, federal debt in the hands of the public is only 74 percent of GDP. Yes, this is double the debt-to-GDP ratio recorded a decade ago. But it’s still a far cry from Italy’s 135 debt-to-GDP ratio or Greece’s 175 percent ratio.”
The 9/11 Commission Didn’t Believe the Government
The 9/11 Commission Didn’t Believe the Government
- The Senior Counsel to the 9/11 Commission (John Farmer) – who led the 9/11 staff’s inquiry – said“At some level of the government, at some point in time…there was an agreement not to tell the truth about what happened“. He also said “I was shocked at how different the truth was from the way it was described …. The tapes told a radically different story from what had been told to us and the public for two years…. This is not spin. This is not true.”
Friday, March 6, 2015
5 Myths of Aging
5 Myths of Aging
Scientists from Tufts University conducted a review and discovered that vitamin deficiencies — not brain decay — were responsible for many of the symptoms of senility.
According to the review, scientists discovered that low folate levels in the elderly can cause forgetfulness and even depression. Vitamin B6, required for the synthesis of neurotransmitters, may contribute to peripheral neuropathy, a disorder of the nervous system that causes numbness and tingling in the legs. Vitamin B12 ensures nerves are protected with a myelin sheath and mood disturbances can occur when levels fall well below normal.
Eat More Salt!
Eat More Salt!
A high-salt diet increased sodium accumulation in the skin of mice, thereby boosting their immune response to a skin-infecting parasite. The findings suggest that dietary salt could have therapeutic potential to promote host defense against microbial infections.
A high-salt diet increased sodium accumulation in the skin of mice, thereby boosting their immune response to a skin-infecting parasite. The findings suggest that dietary salt could have therapeutic potential to promote host defense against microbial infections.
When El Supremo Is a Lone Wolf
When El Supremo Is a Lone Wolf
This week, the president’s press secretary told reporters that the president is seriously thinking of signing executive orders intended to raise taxes on corporations by directing the IRS to redefine tax terminology so as to increase corporate tax burdens. He must have forgotten that those additional taxes would be paid by either the shareholders or the customers of those corporations, and those shareholders and customers elected a Congress they had every right to expect would be writing the tax laws. He has eviscerated that right.
This week, the president’s press secretary told reporters that the president is seriously thinking of signing executive orders intended to raise taxes on corporations by directing the IRS to redefine tax terminology so as to increase corporate tax burdens. He must have forgotten that those additional taxes would be paid by either the shareholders or the customers of those corporations, and those shareholders and customers elected a Congress they had every right to expect would be writing the tax laws. He has eviscerated that right.
Planning To Retire?
Planning To Retire?
The Center for Retirement Research at Boston College estimates that more than half of all American households will not have enough retirement income to maintain the living standards they were accustomed to before retirement, even if the members of the household work until 65, two years longer than the average retirement age today.
Using a different, more complex model, the Employee Benefit Research Institute calculates that 83 percent of baby boomers and Generation Xers in the bottom fourth of the income distribution will eventually run short of money. Higher up on the income scale, people also face challenges: More than a quarter of those with incomes between the middle of the income distribution and the 75th percentile will probably run short.
Exposing O’Reilly
Exposing O’Reilly
In March 1977, As the House Select Committee on Assassination began its interviews of de Mohrenschildt, he was found dead, a gunshot through his cranium. In his book, O Reilly claimed that as a young reporter he was standing on the porch of the house where de Mohrenschildt was staying when he heard the shot. The claim has been disproved through a recorded phone conversation between O’Reilly and congressional investigator Gaeton Fonzi which revealed that the young journalist was clearly not even in the state when de Mohrenschildt died.
In March 1977, As the House Select Committee on Assassination began its interviews of de Mohrenschildt, he was found dead, a gunshot through his cranium. In his book, O Reilly claimed that as a young reporter he was standing on the porch of the house where de Mohrenschildt was staying when he heard the shot. The claim has been disproved through a recorded phone conversation between O’Reilly and congressional investigator Gaeton Fonzi which revealed that the young journalist was clearly not even in the state when de Mohrenschildt died.
Tuesday, March 3, 2015
How’s That Deflation Working Out for You?
How’s That Deflation Working Out for You?
The BLS put out their monthly CPI lie last week. They issued the proclamation that inflation is dead. Did you know your costs are 0.1% lower than they were one year ago. They then used these deflation numbers to proclaim your real wages soared last month. It’s all good. The American consumer is so flush with cash, they decided to spend less money for the second month in a row.
The BLS put out their monthly CPI lie last week. They issued the proclamation that inflation is dead. Did you know your costs are 0.1% lower than they were one year ago. They then used these deflation numbers to proclaim your real wages soared last month. It’s all good. The American consumer is so flush with cash, they decided to spend less money for the second month in a row.
Housing Bust Redux?
Housing Bust Redux?
As noted last week, the aggregate amount of loans for new and used cars will in short order eclipse the $1 trillion mark, joining total student debt in full-on bubble mode. Better still, early delinquencies on auto loans are now sitting back at their 2008 highs (both for all borrowers and for subprime borrowers, with 9% of the latter now missing a payment within the first 8 months of origination).
As noted last week, the aggregate amount of loans for new and used cars will in short order eclipse the $1 trillion mark, joining total student debt in full-on bubble mode. Better still, early delinquencies on auto loans are now sitting back at their 2008 highs (both for all borrowers and for subprime borrowers, with 9% of the latter now missing a payment within the first 8 months of origination).
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