ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jul 18 19:06

Does huge buybacks guarantee stocks profits?

Jul 18 17:29

A Bad Copyright Bill Moves Forward With No Serious Understanding of Its Dangers

By Katharine Trendacosta

The Senate Judiciary Committee voted on the Copyright Alternative in Small-Claims Enforcement Act, aka the CASE Act. This was without any hearings for experts to explain the huge flaws in the bill as it’s currently written. And flaws there are.

During the vote in the Senate Judiciary Committee, it was once again stressed that the CASE Act—which would turn the Copyright Office into a copyright traffic court—created a “voluntary” system. “Voluntary” does not accurately describe the regime of the CASE Act...

Jul 18 16:27

Boeing takes $5bn hit over grounding of 737 Max

Boeing is taking a $4.9bn hit to cover the costs of the grounding of its 737 Max aircraft after two deadly crashes.

The charge is set to wipe out profits when the world's biggest planemaker posts quarterly results next week.

In a statement, Boeing also said its "best estimate at this time" is that 737 Max will return to service in the last three months of this year.

Jul 18 12:58

Mapping Out the 'Filthy Rich' In Each State

Jul 18 12:16

Railroad CEO: This Economy Is The “Most Puzzling” In My 40-Year Career

By Mac Slavo

Railroad CEO James Foote says that the behavior of this economy is the “most puzzling” he’s seen in his 40-year career in the railroad industry. “The present economic backdrop is one of the most puzzling I have experienced in my career,” Foote told Wall Street analysts on a conference call Tuesday evening.

“Both global and U.S. economic conditions had been unusual this year, to say the least, and have impacted our volumes. You see it every week in our reported carloads...

Jul 18 11:56

Global debt levels continue to rise

Jul 18 11:44

In Major Threat To Dollar's Reserve Status, Russia Offers To Join European SWIFT-Bypass

Three weeks after a meeting between the countries who singed the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), which was ditched by US, French, British and German officials said the trade mechanism which was proposed last summer - designed to circumvent both SWIFT as well as US sanctions banning trade with Iran - called Instex, is now operational.

And while we await for the White House to threaten Europe with even greater tariffs unless it ends this special purpose vehicle - it already did once back in May when it warned that anyone associated with the SPV could be barred from the U.S. financial system if it goes into effect - a response from the US is now assured, because in the biggest attack on the dollar as a reserve currency to date, on Thursday, Russia signaled its willingness to join the controversial payments channel, and has called on Brussels to expand the new mechanism to cover oil exports, the FT reported.

Jul 18 11:00

Money Laundering Fines Worth Billions Help Bankers Avoid Prosecution and Unpleasant Labels

By Lubomir Tassev

The recent seizure of a cargo ship owned by JP Morgan, a vessel loaded with 20 tons of cocaine according to latest accounts, highlighted the risks of banks’ involvement in illicit activities, inadvertent or otherwise. And although U.S. authorities released the MSC Gayane after the owner, JP Morgan’s asset management arm, and the operator, Mediterranean Shipping Company, paid a $50M in cash and surety bond, the stain remains and this is not the only stain. Money laundering for drug cartels and moving funds for terrorists, arms dealers and dictatorial regimes are among the sins banks have accumulated through the years. However, court settlements and billions of dollars in fines often help major financial institutions avoid prosecution, conviction, and labels like ‘Drugbanks.’...

Jul 18 10:15

Walmart To Lose $1 Billion In E Commerce Operation

Walmart (NYSE: WMT) has been pouring billions into its domestic e-commerce operations for the past three years, since acquiring Jet.com and installing Marc Lore as the head of U.S. e-commerce. It’s bought several digitally native brands, including Bonobos and Modcloth, and it’s successfully attracted new brands to Walmart.com and created its own brands in-house.

But its online grocery business, a business in place before the Jet.com acquisition, has been the star of the show the last few years. Online grocery helped propel Walmart’s U.S. e-commerce business to 40% revenue growth last year, and a similar level of growth will help Walmart reach between $21 billion and $22 billion in online sales this year.

While grocery is a standout winner, Walmart’s efforts to capture share of more traditional online purchases have come at a huge cost. The company is set to lose more than $1 billion this year from its U.S. e-commerce operations, according to a report from Recode.

Jul 18 10:00

'Enemy is on Wall Street, not in Iran'

Jul 18 09:37

City Announces Cops to Begin Arresting People for Being Homeless in the Wrong Part of Town

By Matt Agorist

Orange County, CA — The war on homelessness has reached unprecedented heights this week as officials in California announced that they will begin arresting people in certain ares for the sole factor of being homeless. The announcement comes after a series of lawsuits were settled to get a handle on Orange County’s homeless problem.

For the mere act of being homeless in the wrong part of town, cops can now arrest people...

Jul 18 07:54

4 Ways Employers Respond to Minimum Wage Laws (Besides Laying Off Workers)

By John Phelan

Most of you will be familiar with a supply and demand graph. This shows a demand curve, which graphs the relationship between the price of something and the quantity demanded of that something, as well as a supply curve, which graphs the relationship between the price of something and the quantity supplied of that something. It is probably the most basic—and useful—model in economics.

Whether the something in question is a good or a service, shoes or labor, the basic supply and demand model predicts that, ceteris paribus, an increase/fall in the price of something will lead to a fall/increase in the quantity demanded of that something—this is Econ 101...

Jul 18 07:50

U.S. Manufacturing Is Officially In Recession

Jul 18 04:43

Visualizing American’s Debt Problem

Jul 17 18:33

What If Charity Replaced Taxation?

By Jean Vilbert

Is State activity the only or best way to provide services to the poor? Do we have alternatives? How about charity? Couldn’t charity replace taxation? It could—and with solid advantages.

There are four main reasons why this is the case: moral, political, financial, and psychological...

Jul 17 18:20

Printable Material Could Lead to Cheaper Solar Panels and Electronics

Imagine printing electronic devices using a simple inkjet printer — or even painting a solar panel onto the wall of a building.

Such technology would slash the cost of manufacturing electronic devices and enable new ways to integrate them into our everyday lives. Over the last two decades, a type of material called organic semiconductors, made out of molecules or polymers, has been developed for such purposes. But some properties of these materials pose a major hurdle that limits their widespread use...

Jul 17 18:10

4 Sustainable Practices That Will Make Big Changes!

By Sara Tipton

Whether we are climate change activists or skeptics, we can all agree that we should all be doing our part to leave our Earth in the best condition possible. Sustainability isn’t always the easiest thing to accomplish considering our consumerist lifestyle in the U.S., but we’ve come up with four things that can really have an impressive impact and make big changes...

Jul 17 17:56

Trump’s Fight With The Fed Over Interest Rates Is A Scripted Farce

Op-Ed by Brandon Smith

There is a very bizarre narrative being circulated in the mainstream economic media and it goes a little something like this:

“The Federal Reserve has capitulated on liquidity tightening yet the US economy is ‘stronger than ever’, isn’t that weird?”

There are a couple things wrong with this statement. First, the Fed has not yet capitulated on its tightening policy. In fact, we have been hearing since last November from the mainstream media and some alternative media that the Fed was going to lower its Fed Funds Rate and end monthly balance sheet cuts at “any moment”, yet several months later it still has not happened...

Jul 17 17:06

Is the Fed Setting a Trap?

Jul 17 17:06

The US Housing Bust In 20 Charts

Jul 17 14:04

Who’s Right, Fed Ex or the Broader Market?

Jul 17 13:15

The Black Hole of Debt

Jul 17 12:06

13,400 of Chicago’s Homeless Had Jobs in 2017, 18,000 Had a College Education

By Emma Fiala

A report published on Tuesday by the Chicago Coalition for the Homeless, revealed that 13,400 of the city’s homeless population had jobs in 2017 while another 18,000 had a college education. The report challenges long held stereotypes concerning the homeless that include the false idea that anyone with a steady job or college education is immune from one of life’s most difficult experiences...

Jul 17 11:23

The Recession Is Now w/ David Haggith

Jul 17 09:44

Expert Predictions: A 70% Stock Market Crash

Jul 17 08:54

US, Iran Send Conflicting Signals on Possible Missile Talks

Secretary of State Mike Pompeo has claimed that Iran has signaled a willingness to negotiate on the matter of ballistic missiles. Other US officials aren’t so sure, and Iranian officials are also telling conflicting stories on the matter.

“Iran’s missiles are absolutely and under no condition negotiable with anyone or any country,” insisted Alireza Miryousefi, the spokesman for Iran’s UN Mission. That is certainly the position Ayatollah Ali Khamenei has long taken.

Yet Pompeo’s belief that talks are possible didn’t come out of thin air. Rather, Foreign Minister Javad Zarif suggested in the US was willing to cut off arms sales to Saudi Arabia and the United Arab Emirates, Iran’s missiles might also be up for negotiation.

That’s probably a non-starter,with President Trump so obsessed with growing arms sales, but does point to a grand bargain potentially being on the table, if both sides want it. The problem is, neither side is being very clear if they want it or not.

Webmaster's Commentary: 

Any possibility of a real deal, will most likely be scotched by Pompeo and Bolton, who both would rather see the US at war with Iran for Israel, than any move toward accommodation and threat-reduction.

And there is is something both gentlemen are really good at not seeing; this is The "Russian Option", and made very clear through the announcement of one top Russian official a couple of weeks ago: Zamir Kabulov: the Foreign Ministry’s special envoy for Asian countries including Iran, has said that Iran will not be alone, if the US attacks it.

Jul 17 08:46

The Dollar, Not Crypto, Is a National Security Issue

By Peter C. Earle

Everything that Mnuchin attributed to Bitcoin — for one thing, that it has been used in concert with such “illicit activity [as] cyber crime, tax evasion, extortion … illicit drugs, and human trafficking” — can be said, and to degrees an order of magnitude or more larger, about the U.S. dollar. It’s an argument suitable for children...

Jul 17 08:35

India Says It's Working with Russia on De-Dollarisation of Bilateral Trade

New Delhi (Sputnik): India says it is working with Russia to overcome payment issues for its strategic imports from that country. Deputy National Security Advisor of India, Ambassador Pankaj Saran said both sides are working on rupee-rouble trade to overcome a crisis caused by US financial sanctions.

Addressing the Second India-Russia Strategic Economic Dialogue in New Delhi on Wednesday, Ambassador Saran said this would help overcome India’s adverse balance of trade with Russia.

“As part of the trading environment, there have been talks about trade in national currencies. This again is still a work in progress and we need to see how we can operationalise and move forward on this idea, because increasingly we see many countries in the world are taking recourse to trading in their own respective currencies", said Ambassador Saran.

Webmaster's Commentary: 

One has to wonder if President Trump understands, to any possible degree, how much these sanctions are hurting - and will hurt - US businesses?!?

Jul 17 08:34

U.S. Manufacturing Is Officially In Recession

By Mac Slavo

The manufacturing industry in the United States has officially sunk into a recession. The once-booming industry is struggling to stay alive amid the trade war as production slumped in the second quarter...

Jul 17 08:29

Venezuela may switch from SWIFT to Russian payment system to skirt US sanctions – report

Venezuela is considering using the Russian alternative to the traditional SWIFT international payment system, as the country braces for new US sanctions that could further weaken its financial sector, according to Bloomberg.

Venezuela’s central bank has sent a request on the matter to the Central Bank of Russia (CBR) as the regulator’s approval is necessary if Caracas wants to use the payment platform, the report said, citing sources. However, neither of the sides involved, nor the world’s largest payment system, SWIFT, has commented on the report.

Jul 17 08:29

Marching to a Federal Debt Crisis - Cato

Jul 17 08:27

Russia solving America's debt problem... by dumping US Treasury securities

Once a top investor with over $170 billion in US Treasury bills, Russia continued reducing its holdings of US debt in May to almost $12 billion, according to recent data published by the US Treasury Department.

Russia’s stockpile of Treasury bills fell by more than $100 million in one month to $12.024 billion, $5.25 bn of which is in long-term securities.

Moscow accelerated dumping US debt last year, when it reduced its holdings by more than 85 percent, from $96.9 billion in January to $13.2 billion in December. The biggest reduction came it April and May, when the country reduced its stockpile by around $81 billion.

The selloff is even more dramatic since 2010, when Russia held US Treasury bonds worth over $170 billion.

Jul 17 08:14

The Rise of Insanity

Jul 17 07:16

JUDGE REDUCES SONOMA CO. MAN'S $80 MILLION AWARD FROM MONSANTO TO $25 MILLION

A federal judge in San Francisco on Monday reduced an $80 million award levied against Monsanto Co. to $25 million for a Sonoma County man who claimed the company's Roundup weedkiller caused his non-Hodgkins' lymphoma.

U.S. District Judge Vince Chhabria upheld a jury award of approximately $5 million in compensatory damages to Edwin Hardeman, 70, of Santa Rosa, but said that guidelines in a 2013 Supreme Court decision required him to reduce the jury's $75 million in punitive damages to $20 million.

The ruling leaves Hardeman's total award at $25,267,634. His case was the first to go to trial of more than 1,000 federal lawsuits against Monsanto nationwide.

Webmaster's Commentary: 

A federal judge in San Francisco on Monday reduced an $80 million award levied against Monsanto Co. to $25 million for a Sonoma County man who claimed the company's Roundup weedkiller caused his non-Hodgkins' lymphoma.

U.S. District Judge Vince Chhabria upheld a jury award of approximately $5 million in compensatory damages to Edwin Hardeman, 70, of Santa Rosa, but said that guidelines in a 2013 Supreme Court decision required him to reduce the jury's $75 million in punitive damages to $20 million.

The ruling leaves Hardeman's total award at $25,267,634. His case was the first to go to trial of more than 1,000 federal lawsuits against Monsanto nationwide.

The US Supreme Court ruling indicated that the damages could not be placed at over 9/1; but why?!? This ruling rather puzzles me, as it doesn't leave a lot of room for legitimate victims' claims.

Jul 17 05:39

EU Launches Amazon Anti-Trust Probe

Now that the EU's anti-trust regulator is finished fining the bejeezus out of Alphabet, the European Commission is turning its attention to another American tech giant: Amazon.

The e-commerce giant is facing a formal EU anti-trust probe over its treatment of third-party merchants on its platform, a premise that doesn't sound all that different from the EU's investigation into Google's AdSense advertising business (the EU hit Google with three multi-billion anti-trust fines over the past few years). In addition to the Amazon probe, the EU is also juggling investigations into Facebook, Apple and Twitter over violations of the EU's new GDPR privacy laws.

According to WSJ, Amazon is suspected of "abusing its dual role as both the provider of a marketplace where independent sellers can offer products and a retailer of products in its own right." In particular, the probe will explore whether "Amazon is using sensitive data from independent merchants to compete against them."

Webmaster's Commentary: 

It is also very possible, that Google picked the absolutely wrong President to deplatform, as it has done for so many sites supporting President Trump.

Jul 17 05:29

Why does the global economy need rescuing after 10 years of non stop monetary stimulus?

Why does the global economy need rescuing after 10 years of non stop monetary stimulus?

I also have an answer and it’s an unpleasant one. Because by bailing out markets and economies at every sign of trouble over the past 10 years central banks have given politicians license to do nothing. And nothing is what you get as political discourse fragments and majority solutions are impossible to come by.

But not only are majority solution impossible to get nobody even wants to even talk about them. Why? Because they involve pain. Voters don’t want to hear pain. Hence all you hear is free money. Tax cuts in 2016. Now we hear free college, health care and debt forgiveness for 2020 and who knows maybe more tax cuts.

Nobody wants to campaign on pain. I get it. But does anyone really think solving the structural problems that are behind slowing growth after 10 years of monetary stimulus are easily solvable?

Jul 16 16:34

Federal Debt Ceiling Reached As Federal Spending Rages

The federal government will soon run up against its self-imposed borrowing cap once again. Current estimates are for the government to max out its credit limit at a little over $22 trillion in early September. Congress goes on recess in August, so there is some pressure to address the cap right now.

Jul 16 15:18

Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

There is a reason James Simons' RenTec is the world's best performing hedge fund - it spots trends (even if they are glaringly obvious) well ahead of almost everyone else, and certainly long before the consensus.

That's what happened with Deutsche Bank, when as we reported two weeks ago, the quant fund pulled its cash from Deutsche Bank as a result of soaring counterparty risk, just days before the full - and to many, devastating - extent of the German lender's historic restructuring was disclosed, and would result in a bank that is radically different from what Deutsche Bank was previously (see "The Deutsche Bank As You Know It Is No More").

Webmaster's Commentary: 

This is going to have a domino effect on other major banks, and most probably very soon.

Jul 16 13:28

Junk Bonds Are Ringing A Bell

Jul 16 12:36

A Top is Forming… Is is THE Top?

Jul 16 12:22

How negative can interest-rates go?

Jul 16 11:48

PATRICK LAWRENCE: Weaponizing the Dollar

The signs are mounting steadily now. As the Trump administration weaponizes the dollar in defense of American hegemony, it is prompting many other nations to find alternatives to the U.S. currency as the default medium of exchange. The long-term implications of this swiftly advancing trend, evident among allies as well as those Washington considers adversaries, cannot be overstated: At stake is the longevity of America’s global preeminence.

The just-concluded Group of 20 session in Osaka, Japan, was a dramatic demonstration of how quickly “de-dollarization” efforts are coalescing. And the pattern could not be clearer: The Trump administration’s incessant use of unilateral economic and financial sanctions against perceived enemies, which is almost certainly without precedent, is high among the reasons these efforts now gather momentum at a pace few in the financial markets or in official circles anticipated.

Jul 16 11:31

Apparently, It’s 2017 Again

Jul 16 11:31

Why Does the US Transit System Have a $100 Billion Maintenance Backlog?

By Chris Edwards

The federal government spends $14 billion a year on subsidies for local rail and bus transit. This spending should be zeroed out in the next federal transportation bill because it induces cities to own and run monopoly transit systems that are unionized and mismanaged.

Federal transit aid has mainly covered capital costs, not operations and maintenance. That has encouraged cities to purchase rail systems with big up-front costs, rather than cheaper, safer, and more flexible bus systems...

Jul 16 11:30

Could A Deutsche Bank Collapse Crash The Markets?

“I don’t think it’s any coincidence that gold runs from $1285 to as high as $1445 around the time that all the news about Deutsche Bank started coming out” [the failure to merge with Commerzbank followed by the “good bank / bad bank” split announcement].

It was reported by Bloomberg that Deutsche Bank clients – mostly hedge funds – are pulling $1 billion in capital per day from the collapsing bank. Still no details have emerged on the how the “bad bank” holding company will be funded or what will go into it. What we do know is the original proposal for a bad bank was for $43 billion in bad assets. That number has bubbled up to a proposed $74 billion. In truth, no one knows for sure the degree to which DB’s derivatives holdings are radioactive. Disgraced former CEO, Anshu Jain, admitted that near the end of his failed tenure.

Jul 16 10:32

The United Nations Agendas: A Totalitarian Map

Op-Ed by Rosanne Lindsay, Naturopath

If you connected all the dots to the various United Nations (U.N.) Agendas, would you create a map of mass regionalization and an eventual Totalitarian State?

Let us count the ways…

Jul 16 10:05

Why Is This Not Another 2015 Soft Landing?

Jul 16 09:54

For those who "can't see the recession"...

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