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New Jersey Hits Uber With $650 Million Tax Bill; Stock Slides

Two months after Uber decided to ignore new ignore new California legislation requiring companies to reclassify contract workers as employees – a measure which would affect up to one million residents who work as contractors and drastically impact Uber’s bottom line – more states are lining up to demand a pound of flesh from the world’s formerly most valuable startup (and subsequently one of the year’s worst IPOs). On Thursday, New Jersey picked up where California left off and found that Uber owes the state about $650 million in unemployment and disability insurance taxes because the rideshare company has been…

The U.S. National Debt Just Hit The 23 Trillion Dollar Mark As We Continue To Steamroll Toward Financial Oblivion

This week, the U.S. national debt reached the 23 trillion dollar mark for the first time ever.  There was no fanfare, there were no politicians giving speeches about fiscal responsibility, and there has been very little national outrage.  We have simply come to accept that it is “normal” for our national debt to grow at an exponential rate, but the truth is that we are literally committing national suicide.  Given enough time, there is no doubt that this colossal mountain of debt will kill our Republic, and yet fiscal responsibility is not even a major national issue any longer.  Everyone…

Dean Foods files for bankruptcy as consumers increasingly reject processed cow’s milk

The largest commercial milk processor in the United States has filed for Chapter 11 bankruptcy protection, citing heavy debt and substantial unfunded debt obligations as among the reasons why. The current owners of Dallas-based Dean Foods say that they eventually want to sell the company, but first need to get things back on track. One step involved securing commitments for $850 million in debtor-in-possession financing, a funding mechanism that’s available for companies in financial dire straits. Dean Foods customers likely won’t see any changes in terms of product availability, however “advanced discussions” with the Dairy Farmers of America (DFA) about…

Guess Who Is Preparing For A Major Stock Market Crash?

Pessimism is spreading like wildfire on Wall Street, and this is particularly true among one very important group of investors.  And considering how much money they have, it may be wise to listen to what they are telling us.  According to a very alarming survey that was recently conducted by UBS Wealth Management, most wealthy investors now believe that there will be a “significant” stock market decline before the end of next year.  The following comes from Yahoo Finance… Wealthy people around the globe are hunkering down for a potentially turbulent 2020, according to UBS Global Wealth Management. A majority…

If Impeachment Fails, Will The Elite Crash The Economy In Order To Prevent Four More Years Of Trump?

By now, it is exceedingly obvious that the global elite absolutely hate Donald Trump.  No president in U.S. history has faced such a relentless assault by the corporate media, and there have been attempts to sabotage his presidency at every turn.  Miraculously, Trump has survived all of these attacks so far, but now the specter of impeachment looms large over his administration.  The Democrats have a solid majority in the U.S. House of Representatives, they are working quickly toward drafting articles of impeachment, and they actually hope to have Trump impeached by Christmas Day.  But in order to have Trump…

Alibaba breaks Singles Day record with more than $38 billion in sales

Chinese e-commerce giant Alibaba set a sales record on Singles Day, the world’s largest 24-hour shopping event. Gross merchandise value, a figure that shows sales across Alibaba’s shopping platforms, surpassed last year’s 213.5 billion yuan record (nearly $30.5 billion) on Monday afternoon local time and kept rising through the rest of the day. At the end of the event, GMV stood at 268.4 billion yuan, just under a 26% rise from the figure posted last year. That’s a slower growth rate than the 27% seen on last year’s Singles Day. In dollar terms, the GMV figure was around $38.3 billion.…

Young First-Time Buyers Are Vanishing From US Housing Market

Seeing as most young Americans are saddled with student-loan debt, underemployment and other economic blights, few have any money left for important large purchases like a home. At this point, it’s beginning to look like millennials will be remembered as the first rentier generation in the country’s history. To wit, according to data from the National Association of Realtors, the median age of first-time home buyers has increased to 33 in 2019, the highest median age since they started collecting the data back in 1981. Meanwhile, the median age for all buyers hit a fresh record high of 47, climbing…

Wisconsin’s Dairy Crisis: “We Are Losing Two Farms A DAY!”

Wisconsin’s dairy crisis has only just begun as the state is losing two farms each day, according to Patty Edelburg, vice president of the National Farmers Union.  As farm bankruptcies soar, it is possible that nearly 10% of Wisconsin dairy farmers may go out of business in 2019. “You look at the weather, you look at the crops you can’t get off the field, you look at the bills you can’t pay,” Edelburg, told Yahoo Finance. “Bankruptcies are up. Wisconsin is attributed as the number one bankruptcy in the nation right now when it comes to dairy farmers. That number…

For Millions Of Americans In The Middle Of The Country, It Feels Like An Economic Depression Right Now

What do you do when you have lost all hope that things will ever turn around?  It may still feel like “the economy is booming” for those at the top end of the economic food chain in big coastal cities such as New York and San Francisco, but for millions of hard working Americans in the middle of the country, talk of a “coming recession” is absolutely ludicrous because it already feels like a severe economic depression is happening right now.  In America’s heartland, bankruptcies are surging, debt burdens are becoming overwhelming, and suicide rates are spiking to unprecedented levels. …

Global Debt Is Up To $188,000,000,000,000 – This Is Officially The Biggest Debt Bubble The World Has Ever Seen

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year.  It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it.  The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible.  Of course throughout human history there has always been slavery, and…

“The Failing New York Times” Stock Plunges After Company Reports Continued Declines In Advertising

The failing New York Times may not just be a cute nickname anymore. Stock of the company plunged as much as 7% on Wednesday, finishing the session down about 4%, on news that its revenue from advertising continues to decline. The company reported this week that ad revenue for its print version is down 9.7% year over year and down 17.2% for its digital version. Print advertising fell 7.9% while digital advertising fell 5.4%. Despite this, the company also reported a jump in subscribers, to 4 million digital-only and 4.9 million total subscribers. On its earnings call, the company pivoted from advertising…

The new dot com bubble is here: it’s called online advertising

Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet. Karmazin was there to find out how. Larry Page and Eric Schmidt, Google’s founder and its CEO respectively, were already seated in the conference room when co-founder Sergey Brin came in, out of breath. He was wearing shorts. And roller skates. The Google guys told Karmazin that the search engine’s earnings came from selling advertisements.…

Can Crypto Revive Swiss Banking?

he crypto phenomenon is global. Public blockchain networks are neither controlled by any state nor by companies. Rather, they connect the most diverse people across national borders. Yet despite all of this non-centrality, some government are trying to align their national interest to crypto and create points of contact, in order to provide a home for this new decentralized blockchain technology. Above all there is Switzerland. At the beginning of 2018, former Minister of Economic Affairs, Johann Schneider-Ammann, proclaimed Switzerland as a “crypto-nation”. He urged universities, industry and government to make this small country into one of the world’s most…

Crashing The Financial System For Fun And Profit

It would be wise to remember we are in uncharted waters and this market could reverse on a dime. The stories flowing out of companies such as WeWork that are burning through cash screams danger ahead! This means we should not discount the idea that those in charge might reach a tipping point where they crash the financial system for fun and profit. While this may seem outlandish the possibility is real. This doesn’t mean that every rich guy and gal would sign on to this plan, just enough to push things over the edge. When things have gone too…

Since 2006, Over a Million Californians Have Left the State

More than half of California’s registered voters have considered leaving the state, and 40% of that number represents Republicans or conservatives, according to a study by the University of California, Berkeley. Conservatives and Republicans surveyed mentioned the state’s expensive housing, high taxes, and liberal political culture as their primary reasons for wanting to leave California, according to the September study conducted for the Los Angeles Times. “We’re moving to redder pastures,” former California resident and conservative Judy Stark, 71, told the Times. “We’re getting with people who believe in the same political agenda that we do: America first, Americans first, law and order.”…

The Feds Spend More on National-Debt Interest Than You Think

Recently, the Treasury Department reported a 26% increase in the federal budget deficit with a 2019 deficit of $984 billion. The reported data on the budget can be misleading. You might think that a budget deficit is the amount of spending that exceeds budget revenue, in other words, the amount of borrowing needed to make up for this shortfall. However, in the world of Washington D.C., not all spending is counted as spending and it’s possible for the government to borrow money from itself. Let’s look at the actual Treasury Department budget numbers. The Treasury reports the Total Public Debt…

We Haven’t Seen A Manufacturing Slowdown Like This Since The Last Financial Crisis

This isn’t what was supposed to happen.  According to the economic optimists, there was going to be a great “manufacturing renaissance” as America entered a wonderful new golden age of boundless prosperity.  But of course that is not what has happened.  Manufacturing activity has been declining for the past three months, and all across the country we are seeing economic conditions rapidly deteriorate.  Over and over, we are seeing economic numbers that are worse than anything we have seen since the last recession, but the economic optimists keep assuring us that these are just temporary blips on the way to…

The Truth About the Dollar

I’ve been to Italy four times, including my most recent trip two weeks ago. So it’s really interesting to look at the different foreign exchange rates in place at the time of my various visits. Just as an example, on this most recent trip I was getting roughly 21% more for my money than the last time I visited four years ago. That makes a huge difference! Of course, unless they’re frequent travelers, most people don’t really pay attention to how well the greenback is doing against other world currencies. And that’s a shame … especially if they invest. A…

BULLSHIT: Census Bureau-U.S. Consumer in Excellent Shape Heading Into Holiday Shopping Season

The latest report from the U.S. Census Bureau puts to rest concerns that the U.S. economy might be heading into recession. It showed not only that the average wage earner is enjoying strong net after-inflation wage gains, but that the vast majority of those gains are being enjoyed by workers in the bottom 80 percent of households. This closes significantly the “income inequality” gap that progressives have been using as a weapon against the president and his economic policies. After reviewing the report financial author and analyst Aaron Brown called it “very good.” He noted that real median earnings were…

The US economic collapse will look like this – are you ready for it?

The US has one of the strongest economies around the world, even as the rest of the world is showing signs of cooling and slowdown. In its latest World Economic Outlook, the International Monetary Fund said that the world’s largest economy remains a “bright spot” on the global stage. Given America’s status of being the economic leader of the world – something it’s been holding onto since 1871 – it’s pretty farfetched to think that it’s bound for collapse. While it’s a scenario many people hope they’ll never live through, preppers should view economics as the “writings on the wall,” so they can act accordingly. Not like the…

Conservative Californians Leaving In Droves For “America First, Law And Order” Red States

California conservatives are leaving the state in droves over what the LA Times describes as their “disenchantment with deep-blue California’s liberal political culture,” not to mention “high taxes, lukewarm support for local law enforcement, and policies they believe have thrown open the doors to illegal immigration.” Just over half of California’s registered voters have considered leaving the state, according to a UC Berkeley Institute of Governmental Studies poll conducted for the Los Angeles Times. Republicans and conservative voters were nearly three times as likely as their Democratic or liberal counterparts to seriously have considered moving — 40% compared with 14%,…

The Deutsche Bank Death Watch Has Taken A Very Interesting Turn

The biggest bank in Europe is in the process of imploding, and there are persistent rumors that the final collapse could happen sooner rather than later.  Those that follow my work on a regular basis already know that this is a story that I have been following for years.  Deutsche Bank is rapidly bleeding cash, they have been laying off thousands of workers, and the vultures have been circling as company executives desperately try to implement a turnaround plan.  Unfortunately for Deutsche Bank, it may already be too late.  And if Deutsche Bank goes down, it will be even more…

30% of Americans Believe the U.S. Dollar Is Backed by Gold

Genesis Mining has conducted a survey asking what the U.S. dollar is backed by. Apparently, around 30% of the U.S. public believes that the dollar is still backed by gold. The Bretton Woods system ended in 1971, and it was then that the convertibility of USD to gold was officially terminated. The dollar became solely a fiat currency, and exchange rates were free-floating. Despite this happening close to 50 years ago, some Americans are still under the impression that gold is tied to dollars in some way. Polling the Public on the Dollar Bitcoin hashrate provider Genesis Mining conducted an illuminating…

“It’s Incredible. The Scale Of What JPMorgan Is Doing Is Mind-Boggling”

Shortly after our latest discussion how JPM’s drain of liquidity via Money Markets and reserves parked at the Fed may have prompted the September repo crisis and subsequent launch of “Not QE” by the Fed in order to reduce its at risk capital and potentially lower its G-SIB charge – currently the highest of all major US banks – we not only got confirmation that the biggest US bank has been quietly rotating out of cash, but was also busy repositioning its balance sheet in another major way. According to an overnight report from the FT which confirms what we…

More Bad Economic Numbers Put A Huge Dent In The Case Of The Economic Optimists

For a long time, people have been trying to tell me that the U.S. economy is headed for a new golden era. They insist that the U.S. will be more powerful and more respected than ever before, and that we will see unprecedented prosperity in this nation. But despite extremely wild spending by the U.S. government and exceedingly irresponsible intervention by the Federal Reserve, the U.S. economy has not even had a “good” year in ages. As I have pointed out numerous times, we have not had a year when U.S. GDP grew by at least 3 percent since the…

The Restaurant Industry Is Saddled With Debt And Facing A Reckoning

The consequences of the last decade of cheap capital and artificially low interest rates are rearing their ugly head in the restaurant industry – and they’re just in time for a nice global consumer spending slowdown.  Debt relative to earnings among companies in the Russell 2000 Restaurants Index is now near the highest on record, according to Bloomberg. And this trend looks as though it is only going to get worse as a result of new accounting rules that require more leases to now be recorded on company balance sheets. In addition to these accounting rule changes, growth in the industry is…

Economy Added 128,000 Jobs in October Amid GM Strike

American employers added 128,000 jobs last month even as the market was dragged down by the General Motors strike, while the unemployment rate stayed near a 50-year low. The number of new positions in October nearly doubles economists’ expectation of around 75,000 new jobs, a downturn predicted by a nearly six-week GM strike that resulted in more than 50,000 people being listed as out of work. That includes 46,000 striking members of the United Auto Workers union in addition to employees at suppliers and other companies affected by the dispute. Without the strike, employers may have surpassed this year’s monthly average…

More Bad Economic Numbers Put A Huge Dent In The Case Of The Economic Optimists

For a long time, people have been trying to tell me that the U.S. economy is headed for a new golden era.  They insist that the U.S. will be more powerful and more respected than ever before, and that we will see unprecedented prosperity in this nation.  But despite extremely wild spending by the U.S. government and exceedingly irresponsible intervention by the Federal Reserve, the U.S. economy has not even had a “good” year in ages.  As I have pointed out numerous times, we have not had a year when U.S. GDP grew by at least 3 percent since the…

Chinese Bank On Verge Of Collapse After Sudden Bank Run

First it was Baoshang Bank , then it was Bank of Jinzhou, then, two months ago, China’s Heng Feng Bank with 1.4 trillion yuan in assets, quietly failed and was just as quietly nationalized. Today, a fourth prominent Chinese bank was on the verge of collapse under the weight of its bad loans, only this time the failure was far less quiet, as depositors of the rural lender swarmed the bank’s retail outlets, demanding their money in an angry demonstration of what Beijing is terrified of the most: a bank run. Local business leaders, political cadres and banking executives rallied…

A ‘growing club’ of ‘very powerful countries’ is shifting away from the US dollar – think tank

The US dollar’s status as the world’s major reserve currency, which it held for decades, could come under threat, according to Anne Korin from the Institute for the Analysis of Global Security. “Major movers” such as Russia, China, and the European Union have a strong “motivation to de-dollarize,” Korin, the co-director at the energy and security think tank, told CNBC. “We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable,” she said, adding “You have a growing club of countries — very powerful countries.” She explained that when the greenback…

What In The World Is The Federal Reserve Thinking???

You don’t use up all of your ammunition before the battle even begins.  The U.S. economy has not even officially entered recession territory yet, although many experts are definitely anticipating one in 2020.  When that recession arrives, the Federal Reserve is going to want as much ammunition to fight it as possible.  So I was horrified to learn that the Federal Reserve announced on Wednesday that interest rates are being slashed once again.  We have now had three interest rate cuts in 2019 as the Federal Reserve desperately attempts to revive the stalling U.S. economy.  But what are they going…

US Stocks Rise After Federal Reserve Cuts Rates for Third Time in Year

US stock rose on Wednesday to near-record record highs after the Federal Reserve cut interest rates for a third straight time this year in a bid to preserve economic growth amid a global slowdown. The S&P500 index of top 500 US stocks was up 0.3% at 3,045.06 by 3:22 PM ET (19:22 GMT). It had hit a record high of 3,047.87 on Tuesday. The broader Dow Jones Industrial Average index was up 0.4% at 27,179.37. The tech-heavy Nasdaq index was also up 0.4% at 8,307.84. The Federal Reserve cut the federal funds borrowing rate by 25 basis points at the…

Three things you didn’t know about the crash of 1929

October 28, 1929– 90 years ago today– is known as ‘Black Monday’ in financial circles. The US stock market had peaked the previous month, on September 3, 1929, with the Dow Jones stock index reaching a record high of 381. But throughout September and October, nervous investors began pulling their money out of the market. And over a three day period in late October (including Black Monday), the market lost more than 30% of its value. Ninety years later, I thought it would be prudent to look at three key insights from that historic crash, starting with: 1) Stocks are…

The Boom Turns Into A Bust – Here are 14 Signs That The U.S. Economy Is Steadily Weakening

There should no longer be any doubt that the U.S. economy is slowing down, but most Americans still don’t realize what is happening because the major news networks are completely focused on the endless impeachment drama that is currently playing out in Washington.  And without a doubt that is important, because it threatens to literally rip our entire nation in two.  But meanwhile, economic activity has taken a very ominous turn.  Hiring is slowing, consumer confidence is plunging, defaults on auto loans are rapidly escalating, the “transportation recession” continues to get deeper and it appears that the housing bubble is…

Lebanon Bans Removal Of Large Dollar Sums From Country Amid Bank Run “Panic”

Eleven days into banks across Lebanon being shuttered due to mass anti-government corruption protests which have gripped the nation, in numbers estimated at one million people taking to the streets simultaneously (a stunning quarter of the population), authorities have just put a temporary ban on removing any large sum of physical dollar currency from out of the country.  The order was issued Sunday by Public Prosecutor Ghassan Oueidat who imposed the ban on all air and land borders, in effect “until the central bank determines a new mechanism for regulating such transfers.” Previously a customs permit was required to take large cash…

Subprime Auto Loans Are Defaulting At Fastest Rate Since 2008

A growing portion of Santander’s subprime auto loans are starting to sour sooner – and at an accelerating rate, according to Bloomberg.  Now, loans made as recently as last year are going bad at the fastest rate since 2008, with “more consumers than usual” defaulting within the first few months of borrowing. Many of these loans had been packaged into bonds after being consummated. Santander is one of the largest subprime auto lenders in the market and the quick failure of its loans could be an indicator that some of its borrowers are getting loans based on fraudulent application information, a problem…

The Loan Market Is Starting To Freeze Up Again: “There Is Growing Risk Of Credit Accidents”

Depending on the source, views on the state of the leveraged loan market range from euphoria to growing pessimism. Among the former is Brian Reynolds, Chief Market Strategist who in his Oct 24 Market Insight  note writes the following: The September credit issuance surge resulted in the loan market being overserved with low quality deals. So, loan yields have come up a little, and loan prices have come down a little. Every time this has happened in this decade-long credit cycle, it has been a buying opportunity, even though some equity investors are worried about this price drop. Since loan…

Global Monetary Failure is Becoming Inevitable

Listening to recent commentaries about the repo failures in New York leads one to suppose there is insufficient money in the system. This is not the real issue, as the chart below of the fiat money quantity for the dollar clearly shows. The fiat money quantity is the amount of fiat money (in this case US dollars) both in circulation and held in reserve on the central bank’s balance sheet. Before the Lehman crisis, it grew at a fairly constant compound growth rate of 5.86%. Since the Lehman crisis, it has grown at an average of 9.45%, even after the…

‘Millennial Millionaires’ Banking On $68 Trillion “Great Wealth Transfer” From Parents

A new report published by Coldwell Banker Real Estate LLC and Coldwell Banker Global Luxury details how “The Great Wealth Transfer” of the 2020s has already begun, which is a period when baby boomer wealth is transferred to their millennial offspring. The report titled “A Look at Wealth 2019: Millennial Millionaires,” notes how the already 618,000 millennial millionaires are expected to increase in size by 2030.  About 93% of them (575,000) are already worth between $1 million and $2.5 million. In the next several decades, nearly $68 trillion of wealth is expected to flow from boomers to millennials. “The difference between the millionaires…

Will Social Security Be There for You? Status of the Social Security Trust Fund in Fiscal 2019

“Don’t rely on Social Security”: Inflation adjustments are punitively low, and benefits become more inadequate as you age. The  Old-Age and Survivors Insurance (OASI) Trust Fund – which does not include the Disability Insurance (DI) Trust Fund – closed the fiscal year 2019 at the end of September with a balance of $2.80 trillion, according to figures released by the Social Security Administration. This balance was up by $3 billion from September last year, but was down $16 billion from September 2017. The balance tends to hit annual peaks in June. The all-time peak was in June 2017, at $2.846…

WeWork: one moron ruining it for everyone else

In 2010, New York-based entrepreneur Adam Neumann had an idea: to lease office space to companies all over the world on a short-term basis. Usually when a company leases office space, it has to sign a long-term contract; but Neumann wanted to lease space to businesses for terms as short as one month. It wasn’t an original idea. Companies like Regus have been doing that for decades. But Neumann had two key twists: 1) Make the offices cool… so cool that even millennials would want to hang out there. So he brought in free tequila, gourmet coffee, and chic designs.…

Start thinking about silver before it becomes popular again

In 663 BC, King Ashurbanipal of the Assyrian Empire invaded Egypt and sacked the city of Waset (located in modern day Luxor on the Nile River). Ashurbanipal vanquished the city, purportedly seizing more than 75 metric tons of silver for his personal collection. At the time in the ancient world, the prevailing ratio between gold and silver was 1:2. In other words, 75 metric tons (= 75,000 kilograms) of silver was worth 37,500 kilograms of gold, equal to $1.76 billion in today’s money. That 1:2 gold/silver ratio had held for thousands of years across Persia, Mesopotamia, and Ancient Egypt, possibly…

Amazon Plummets On Profit Drop, AWS Miss, Dismal Guidance

Two quarters ago, when Amazon reported otherwise respectable earnings, the market hammered the stock after AWS growth slowed and Amazon guided to the lowest revenue growth since 2001, despite broadly higher margins. Then, last quarter, Amazon stock tumbled again on the company’s disappointing profit outlook, and continued slowdown in the growth rate of the company’s golden goose – AWS. And, as the company reported moments ago, as it has traditionally tended to do, its guidance of $66-70BN was a sandbagging as Amazon reported Q3 net sales of $70BN, at the very top of the range, and above the $68.7BN consensus…

“You’ve Got To Be Kidding Me”: 4,000 WeWork Employees Face The Ax As Neumann Walks Away With $1.2 Billion

Update (1330ET): Just hours after employee fury is soaring at Neumann’s payout (and the reported millions in severance now agreed for the current co-CEOs), The FT reports that WeWork is planning to cut as many as 4,000 jobs as part of an aggressive turnaround plan put in place by Japan’s SoftBank after it took control of the co-working business this week. According to people with direct knowledge of its plans, the job cuts will amount to just under a third of WeWork’s global workforce of around 14,000 people. About 1,000 of the cuts will hit employees such as janitorial staff,…

Goodbye Middle Class: 50 Percent Of American Workers Make Less Than 33,000 Dollars A Year

The truth is that most American families are deeply struggling, but you hardly ever hear this from the mainstream media.  Yes, about 10 percent of all American workers are making $100,000 or more a year, but most of those high paying jobs are concentrated in the major cities along the east and west coasts.  For much of the rest of the country, these are very challenging times as the cost of living soars but their paychecks do not.  According to the Social Security Administration, the median income in the United States last year was just $32,838.05.  In other words, 50…

Global Millionaires—Just 0.9% of Population—Now Own Nearly Half of World’s $361 Trillion in Wealth, Study Shows

The millionaires of the world, who account for just 0.9 percent of the global population, now own nearly half of the planet’s $361 trillion in wealth while the bottom 56 percent of the population owns just 1.8 percent. That’s according to the annual Global Wealth Report released Monday by Credit Suisse, which found that the number of millionaires in the world grew to 47 million between mid-2018 and mid-2019, with the United States leading the world in both new and total millionaires. According to Credit Suisse, the U.S. added 675,000 new millionaires over the past year, bringing the country’s total…

Nearly Half Of US Consumers Report Their Incomes Don’t Cover Their Expenses

Low-income consumers are struggling to make ends meet despite the “greatest economy ever,” and if a recession strikes or the employment cycle continues to decelerate — this could mean the average American with insurmountable debts will likely fall behind on their debt servicing payments, according to a UBS report, first reported by Bloomberg.  UBS analyst Matthew Mish wrote in a recent report that 44% of consumers don’t make enough money to cover their expenses. The new survey asked 2,100 respondents in the US about their current financial situation, at least 40% of the respondents said they experienced a credit problem, if…

The Truth About Race and Welfare, Food Stamp, and Section 8 Usage

This article deserves a far wider audience than it has received since being published. [Race, Welfare, and Media Lies, October 17, 2019]: When you talk to leftists about race, it doesn’t take long for them to bring up some variation of “most people on welfare are white.” As we’ll see, this is simply not true. And you don’t even have to delve into the grade-school concept of per capita welfare rates to explain this. In absolute terms, whites are a minority of users. But this doesn’t stop lefties from making claims like this: Rick Newman, a senior columnist for Yahoo…

They Are Telling Us That The Next Recession “Won’t Be As Bad As 2008”. They Are Wrong.

Are we really supposed to believe them?  As the next recession rapidly approaches, the mainstream media is assuring us that there isn’t really that much to be concerned about.  In fact, as you will see below, CNN is assuring us that “the next one won’t be as bad as 2008”.  But how do they know?  After all, we didn’t have a president that was in danger of being impeached in 2008.  As this impeachment process moves forward, the mood of this nation is going to become increasingly sour.  Over in Europe, they are dealing with endless Brexit drama, and over…

Done With the Greenback: Russia Eyeing Euro, Yuan-Denominated Loans

The 2020 budget plan allows foreign loans to amount to $3 trillion, with the government seeking bonds in currencies different from the dollar. While so-called Panda bonds are already in the making, no less hope has been pinned on Russia’s vast gold reserves, expected to buffer potential price volatility on oil. Replying to reporters’ questions on the sidelines of an IMF and World bank meeting, Russian Finance Minister Anton Siluanov has pointed out that in view of the impact of US sanctions on the country’s sovereign debt market, Moscow has been creating the infrastructure to use the yuan and euro…

America’s Road Map To $40 Trillion National Debt By 2028

Watch out!  At this very moment, professional economists of all stripes are making plans on your behalf.  They’re dreaming and scheming new and innovative ways to spend your money long before you’ve earned it. While you’re busy at the gristmill, grinding away for clients and customers, claims are being laid upon your life.  Your future earnings are being directed to boondoggles galore.  Yet these claims are in addition to everything Washington’s already signed you up for. At last count of the U.S. National Debt, every American citizen’s on the hook for nearly $70,000.  Add U.S. Unfunded Liabilities – which includes Social…

69 Percent Of U.S. Households “Are Preparing For A Possible Recession”

Do you believe that a recession is coming?  If so, you certainly have a lot of company.  It turns out that more than two-thirds of all U.S. households “are preparing for a possible recession” right now.  There is a growing national consensus that that U.S. economy is heading for big trouble, and this is causing a lot of people to cut back on spending.  In fact, we just witnessed the first drop in retail sales in seven months.  If this slowdown in retail spending extends into the holiday season, that could potentially be absolutely disastrous for the entire retail industry. …

Bernie Sanders is a Bad Economist: Housing Market Edition

The great 19th-century French economist Frederic Bastiat once argued that “between a good and a bad economist this constitutes the whole difference — the one takes account of the visible effect; the other takes account both of the effects which are seen, and also of those which it is necessary to foresee.” Being an avowed socialist, it is little wonder that Bernie Sanders falls into the category of a bad economist, however, his recently released housing plan makes it abundantly clear that Sanders’, like all bad economists according to Bastiat, “pursues a small present good, which will be followed by…

Here Is The Secret Cost Behind All Those “Free” Credit Card Perks

Despite the fact that the Fed insists on keeping interest rates low, many credit cards are actually raising rates for consumers, according to the Wall Street Journal. The increase is to make up for the generous rewards – perks like cash back and travel – that credit cards are offering to lure in customers.  The average APR on a interest charging credit card is now about 17%, near its highest in more than 2 decades. The APR is traditionally set by a broader market rate plus a margin set by the lenders. These margins have been rising steadily, even as…

Historic Midwest Blizzard Has Farmers “Expecting Massive Crop Losses – As Devastating As We’ve Ever Seen”

An unprecedented October blizzard that hit just before harvest time has absolutely devastated farms all across the U.S. heartland.  As you will see below, one state lawmaker in North Dakota is saying that the crop losses will be “as devastating as we’ve ever seen”.  This is the exact scenario that I have been warning about for months, and now it has materialized.  Due to endless rain and horrific flooding early in the year, many farmers in the middle of the country faced very serious delays in getting their crops planted.  So we really needed good weather at the end of…

40 Million Americans Already Don’t Have Enough Food To Eat – And Here Is Why It Will Soon Get A Lot Worse

The things that I am going to share with you in this article are definitely very alarming.  But if you live in a wealthy neighborhood and are always surrounded by other wealthy individuals that never have to worry about missing a meal, then some of the numbers in this article may not ring true to you.  Today, the gap between the wealthy and the poor in the United States is larger than ever, and many wealthy Americans don’t have too much sympathy for the struggles that other people are going through.  But the truth is that most Americans are currently…

Hedge Fund Trader Who Called 2008 Crash Lists 3 Biggest Threats To US Stocks

Goldman Sachs alum and former hedge fund manager Raoul Pal is one of a handful of traders/fund managers/analysts who achieved fame and notoriety in the financial press after “predicting” the financial crisis of 2008. And during a brief phone interview with MarketWatch on Thursday, it appears Pal, the author of the Global Macro Investor newsletter –  a newsletter that is purportedly closely followed by macro traders (at least those remaining macro traders who still have a pulse and are composed mostly of flesh and blood) – has a few thoughts about what will bring about the next sustained downturn in…

🚨 Central Bank Issues Stunning Warning: “If The Entire System Collapses, Gold Will Be Needed To Start Over”

It’s not just “tinfoil blogs” who (for the past 11 years) have been warning that a monetary reset is inevitable and the only viable fallback option once trust and faith in fiat is lost, is a gold standard (something which even Mark Carney hinted at recently): central banks are joining the doom parade now too. An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that “if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the…

Royal Mint launches first-ever debit card made of solid gold (spoiler alert: it isn’t cheap)

The UK’s Royal Mint has produced its first payment card which is made from real gold. The new card comes with a hefty price tag of £18,750 ($23,200). The 18-carat hallmarked debit cards will be personalized for account holders “who value high-quality luxury items that make a statement,” the Mint said. They have been developed by the Mint in conjunction with Mastercard and payments technology firm Accomplish Financial. Mastercard said the cards are part of an account called Raris and will be engraved with the customer’s name and signature. The account benefits from limitless spending and zero foreign exchange or…

Global Air Freight Decline Now Worst Since 2008 Financial Crisis

The escalating trade war between the US and China has accelerated the synchronized global downturn. Global exports continue to collapse, and the global Purchasing Managers Index (PMI) remains under 50, stuck in contraction territory. All of these ominous signals indicate a global trade recession could be imminent in 2020.  New data from the International Air Transport Association (IATA) shows global air freight volumes, measured in freight tonne kilometers (FTKs), plunged 3.9% in August YoY, and this was the tenth consecutive month of contraction and the most extended decline since the 2008 financial crisis.  Global trade volumes are quickly slowing, down…

The Shocking Truth About Trump’s “Trade Deal” With China

We have a trade deal with China!  Well, except that nothing has actually been written down, nothing has actually been signed, the potential deal won’t really require any major concessions from China, but it did allow the Chinese to achieve a couple of key goals that they really wanted.  But other than that, the good news is that the Trump administration now has a “trade deal with China” to tout as a “major accomplishment” to voters.  And without a doubt, in the short-term this will calm the financial markets and ease some of the pressures on the global economy.  Certainly…

QE4 “Not A QE” Begins: Fed Starts Buying $60BN In Bills Per Month Beginning Next Week

Just one day after we laid out what Goldman’s revised forecast for the Fed’s “NOT A QE” will look like, which for those who missed it predicted that the Fed would announce “monthly purchases of about $60BN for four months, split across Treasury bills and short maturity coupon Treasuries, in order to replenish the roughly $200bn reserve shortfall and support the pace of growth in non-reserve liabilities”, the Fed has done just that and moments ago – well ahead of consensus expectations which saw the Fed making this announcement some time in November – the US central bank announced it…

J.P Morgan Warns About The “State” of the American Consumer

J.P. Morgan has taken to issuing warnings over the mental state and overall health of the American consumer’s habits. As a nation, we are deeply indebted to consumerism and that’s what is currently keeping the fragile economy afloat. With the manufacturing industry already officially in a recession, the Institute of Supply Management purchasing manager index was registering a reading of 47.8 (anything over 50 indicated growth) for September, the worst reading since 2009 the news seems bleak even for the consumerism that’s fueling this debt-based economy.  The U.S. and the Chinese trade war is also degrading business confidence, causing management…

47% of American Socialists Believe “taking violent action against the rich may be JUSTIFIED”

In a nation that has prided itself on the “American Dream” – the dream that anyone can become wealthy if they work hard enough and make the right decisions – it’s probably a shock to learn that a lot of folks no longer believe in capitalism. But the shock goes even deeper than that. A report from the Cato Institute that examined Americans’ opinions on wealth and the wealthy says that 47% of American socialists believe that  “taking violent action against the rich may be justified.” About the report The Cato Institute is a think tank that performs independent, non-partisan…

The Hidden Costs of a Universal Basic Income

The universal basic income (UBI) is gaining popularity as the alternative to the current welfare system. The idea is to give each citizen the same amount of money, no matter if he or she works or not. Therefore, unlike traditional welfare systems, the UBI has no means test, nor willingness-to-work test. Nobody would be then left without a livelihood even if there is no work for him. Doesn’t that sound great? The problem is that the program must be financed somehow. Let us assume for simplicity that there are 250 million adult Americans and that each of them would receive…

China’s Sanctions Against American Farmers Are Likely Permanent

The American farmer keeps getting bombarded with bad news, and it doesn’t look like it’ll be alleviated any time soon. The tariffs the Chinese slapped on American soybeans are corn are likely to do permanent and everlasting damage to the economy. It’s a fear many farmers from North Dakota to Mississippi have acknowledged for the past year, according to a report by Forbes. American farmers have raised their concerns about everlasting damage because they’ve invested millions of dollars in soybean expansion because of China. Now that Chinese demand has moved to Brazil instead, that market (and their investment) may be…

Peter Schiff: “Gold Is Going To Be Money Again” Because Of Gigantic Global Debt Time Bomb

Money manager Peter Schiff says the Federal Reserve has already started a new money printing program that continues to expand the debt bubble and keep global markets propped up. This started abruptly last month in what is called the “repo market,” where the Fed provides liquidity for traders of short-term money or overnight funding. Schiff says, “When the Fed was doing QE3, they were buying $85 billion worth of debt per month. They (Fed) just did $176 billion in three weeks, and they say they are not doing QE. So, the Fed is monetizing more debt not doing QE than…