ECONOMY | WHAT REALLY HAPPENED


ECONOMY

May 13 13:35

Life Amidst Poverty

Poverty is exhausting. Poverty is despair and desperation-inducing. Poverty is soul, dream and hope crushing.

May 13 11:10

Art Institutes Is Latest For-Profit To Close It’s Doors – Forgiveness Available

. . . . EDMC, which operates 51 Art Institutes International campuses, underwent a restructuring last month and reduced a $1.5 billion debt to $400 million. The closures will leave 36 of its campuses open.

EDMC is the latest private, for-profit school to announce financial troubles. Two weeks ago, DeVry University announced it was closing 14 campuses. Last month, Corinthian, one of the largest for-profit education operations in the country, shut down. And in February, another big one, Kaplan, sold all 38 of its schools.

This just further debases the degrees of existing graduates.

May 13 11:03

Amtrak crash shows the high cost of ignoring infrastructure

America is crumbling before our eyes. Once, the U.S. was the envy of the world with its modern roads, airports, railroad bridges and other infrastructure.

Everything was first-class.

Now, it’s third-rate.

An Amtrak passenger train derailed Tuesday in Philadelphia, killing at least seven passengers.

May 13 09:16

HSBC WARNS: The world economy faces a ‘titanic problem’

HSBC chief economist Stephen King is already thinking about the next recession.

May 13 08:51

Does Wall Street Call the Shots at the FBI?

It is clear to most Americans that Wall Street’s financing of presidential and congressional campaigns is creating too many pals wearing blindfolds about epic corruption on Wall Street. The President, subject to Senate confirmation, selects the U.S. Treasury Secretary, the Chair of the Federal Reserve, the Chair of the Securities and Exchange Commission – all of whom regulate Wall Street, for better or worse. Given that Wall Street collapsed the U.S. financial system in 2008 and has been perpetually charged with new crimes ever since, there is the strong suggestion that regulation isn’t strong enough.

May 13 08:37

Oil Price Hits High for 2015

For the first time this year, oil is above $60 per barrel.

May 13 08:25

Gold Pushes Above $1,200 Following Downbeat U.S. Retail Sales

Gold prices are higher and hit a two-week high in early U.S. trading Wednesday, following a U.S. retail sales report that did not meet market expectations. June gold futures pushed above the important $1,200.00 level. Silver prices hit a six-week high above $17.00 an ounce. Short covering in the futures market and bargain hunting in the cash market are featured. Some slight safe-haven demand is also seen. June Comex gold was last up $12.10 at $1,204.50 an ounce. July Comex silver was last up $0.519 at $17.04 an ounce.

May 13 08:25

What Does U.S. Treasury Do With Vaccine Excise Taxes It Collects?

Webmaster's Commentary: 

Not only do vaccine sales enrich the pharmaceutical industry, the excise tax on vaccines generates billions of dollars in revenue for the government, which may explain why the government mandates so many vaccines!

May 13 08:23

Collectivists Hate Individuality, Tribalism And ''Fast And Furious 7''?

By Brandon Smith

Sometimes in the liberty movement — with discussions of potential collapse, war, revolution, social destabilization, etc. — it is easy to get so caught up in the peripheral conflict between the elites and the citizenry that we forget what the whole thing is really about. That is to say, we tend to overlook the very core of the conflict that is shaping our epoch...

May 13 08:15

Here It Comes: Denmark Moving to a Totally Cashless Society

Can you imagine living in a world where your every economic move is tracked and traced and completely reliant on computers?

Headlines today are declaring that not just a few, but millions of smart grid devices are open to cyberattacks, and that smart grid security is basically a joke. Bitcoin seems like a good idea on the surface, but there are too many instances where accounts get hacked, money gets stolen, or worse, people get scammed out of millions. Why?

Because it's all online... it is intangible. You can't physically hold it in your hand, therefore, you can't physically protect it.

Not that fiat currency is so much better, but this is going to be so much worse.

May 13 08:11

Chicago "Junking" Triggers $2.2 Billion Payment, Deepening Financial Crisis

Following an Illinois Supreme Court ruling that struck down a pension reform plan aimed at closing a $100 billion funding gap, Moody's downgrades Chicago to junk, giving the city the dubious distinction of being the only major city "in recent history" to carry such a low rating other than Detroit. Chicago now faces accelerated payments to creditors of more than $2 billion.

May 13 08:10

Chicago "Junking" Triggers $2.2 Billion Payment, Deepening Financial Crisis

Citing “expected growth in the city’s highly elevated unfunded pension liabilities,” the rating agency cut the city to junk at Ba1. This is bad news for Chicago for a number of reasons, not the least of which is the fact that Emanuel was looking to refi nearly a billion dollars in floating rate debt into fixed rate notes and borrow another $200 million to pay off the related swaps — clearly this will now be far more difficult. The ratings agency’s actions also given creditors accelerated payment rights, meaning the city could be on the hook for some $2.2 billion in principal and interest on its outstanding liabilities.

May 13 08:02

The oil crash: something wicked this way comes

May 13 07:51

Rot Of Empire: Moody’s Downgrades Chicago To Junk Bond Status

It’s doubtful that Warren Buffet’s Moody’s Investor Services will face the same wrath from Obama that Obama inflicted on S&P after S&P downgraded the U.S. Government debt rating from triple-A to double-A. After all, Warren Buffet owns Obama.

May 13 00:28

New mortgage rules for Auckland investors: They must have 30 per cent deposit

New mortgage rules for Auckland investors: They must have 30 per cent deposit
10:40 AM Wednesday May 13, 2015

The Reserve Bank will target Auckland property investors with new lending restrictions as it looks to take the heat out of the property market in the country's biggest city, which it sees as a key risk to the nation's financial system.

The bank intends in October to introduce new loan-to-value ratio (LVR) limits on lending to property investors in the Auckland Council area that would require those borrowers to have at least a 30 per cent deposit, it said in its six-monthly financial stability report.

The Reserve Bank said the potential for a sharp correction in the Auckland market has increased since its November report, with investors the key source of new demand for the city, accounting for about a third of new lending in the six months ended March 31.

May 12 17:53

Regulation and Red Tape Cost Us $1.88 Trillion per Year

American’s frequently complain about the amount of income taxes they have to pay every year, and understandably so. Income taxes average between 20-30% for most middle and upper-class Americans. However, US citizens hardly pay the most when compared to the rest of the world. Belgium, for instance, has the highest income tax rate for average wage earners, at 42.8%.

But where these statistics get tricky, is when it comes to hidden taxes. The one’s that don’t show up on your tax form. For that, United States takes the cake, or is at least paying more than most countries. A new report from the Competitive Enterprise Institute found that Americans are collectively paying $1.88 trillion due to federal regulations. When a new regulation is enforced on a particular industry, those costs are passed down to the consumer, so the things we buy and the services we use have a hidden tax that doesn’t show up on the price tag.

May 12 15:45

Apple Could Make Money by Bailing Out Greece

Greece needs about 190 billion euros ($212 billion) to bring down its debt to the manageable level of 70 percent of gross domestic product. That's about 48 percent of the five companies' combined cash stash. For paying down the debt, Greece could reward the firms with a special deal on corporate taxes, somewhat like the one Apple now enjoys in Ireland. That sweetheart deal is being investigated by the European Union and is probably doomed. Yet Greece's case is different: The EU, as one of the country's biggest creditors, might be inclined to make a special dispensation to the American companies for helping solve the Greek problem.

"Welcome to Applesoft Greece"

May 12 15:42

The real sign that Greece's financial turmoil is getting worse

Greeks are pulling their money out of banks... and spending it on cars

May 12 14:59

Stocks May Be About To Fall, Caution Advised

May 12 14:56

Another bankster turns up dead; Murray Abbott washes up on Toronto beach

Keep 'em coming, boys!

May 12 14:04

Michigan Voters Smash Tax Hike Referendum

Proposal 1 suffered the worst defeat Tuesday of any Michigan ballot measure since the current Constitution was adopted more than a half-century ago, as 80 percent of voters rejected the sales tax increase and road funding plan. . . .

May 12 12:39

Trade bill fails procedural vote in Senate

The Pacific trade agreement failed its first test in the U.S. Senate on Tuesday after a key Democrat said he would vote against a procedural vote to support President Barack Obama's diplomatic pivot to Asia.

Oregon Sen. Ron Wyden said Tuesday that he will vote "no" in the procedural hurdle to grant the president Trade Promotion Authority—or so-called "fast-track" status for trade deals. The final vote saw 52 "yea" and 45 "nay" votes—shy of the 60 affirmatives required to pass the procedural hurdle.

May 12 12:37

The Tragic End of the Woman Bill Clinton Exploited As Poster Child for Gutting Welfare

We are approaching the 20th anniversary of the Personal Responsibility and Work Opportunity Act—also called "welfare reform"—which was passed by President Clinton working with the Republican-controlled Congress.

May 12 12:36

Is There Any Gold At Fort Knox? Survey Says “Highly Unlikely”

These days, the depository is the focus of much conspiratorial debate.

Some people suspect that it may now be empty.

After all, Fort Knox hasn’t been officially inspected since Sept. 23, 1974.

And even then, the “inspectors” (members of the press, actually) were only taken to the anteroom in order to photograph a handful of gold bars.

Ever since, admission to the Fort’s supposed gold deposits has been repeatedly denied.

So, is there gold at Fort Knox? Or is it all gone – lent, sent, and spent across the globe?

May 12 12:12

84% Of Banks Still Exploiting $35 Overdraft Fee

May 12 10:27

The War On Cash Escalates: No Cash Or Bullion Allowed In Safe Deposit Boxes

The Goal Is to Force You to Deposit Cash and Charge You Interest

Bankers in the U.S. can learn something from the Swiss. The Swiss National Bank recently implemented negative interest rates without first solving the “problem” of how to prevent cash from fleeing the banks. Predictably, depositors started doing some math.

In one example, a sizable Swiss pension fund, calculated it would save 25,000 francs for every 10 million it held in the bank by simply withdrawing those millions and taking the bales of paper francs to be kept in a vault. The vault storage fees are less expensive than the negative interest rate.

Jumping the gun on the implementation of negative rates put the Swiss banks in an awkward situation. Like all fractional reserve lenders, they don’t have anywhere near enough cash to make good on the withdrawals that may be coming.

May 12 10:16

New Study on Food Shortages Highlights Need For Local Solutions

By Kevin Samson

In a new study that surprisingly comes from the halls of establishment education, researchers pinpoint globalization as a key indicator of where food crises are likely to emerge and worsen.

The study examines 140 nations with significant populations that have become reliant on imports due to the globalization of trade...

May 12 09:57

Concerns over Yemen aggression weigh on Saudi Arabia’s biggest stock index

The value of Saudi Arabia’s major stock index, Tadawul, has taken a nosedive amid concerns over the ongoing war of aggression in Yemen.

May 12 09:46

Almost Half Of US States Are Officially Broke

May 12 08:58

Surge In VIX Volume Reflects Huge "Interest In Owning Market Crash Protection"

"I'm not sure if it’s the biggest trade ever, but it's certainly one of them," noted Jamie Tyrrell, a VIX specialist on the CBOE floor, as Bloomberg reports almost $100 million worth of options pegged to the volatility of US equities were traded in a split second at 1216ET today. "Someone is interested in owning a lot of protection," Tyrrell added as just over 1 million contracts were traded, all told, about 54% of the total amount of index options that traded at the CBOE all day Friday. While for every buyer of VIX Calls there is a buyer, the notable push higher in volatility after this trade suggests the trades had characteristics of someone hedging stocks.

May 12 08:57

Almost Half Of US States Are Officially Broke

An Associated Press analysis of statehouse finances around the country shows that at least 22 states project shortfalls for the coming fiscal year. The deficits recall recession-era anxiety about plunging tax revenue and deep cuts to education, social services and other government-funded programs.

The sheer number of states facing budget gaps prompted Standard & Poor's Ratings Service to call the trend a sort of "early warning."

"After all, if a state is grappling with a budget deficit now, with the economic expansion approaching its sixth anniversary, what will be its condition when the next slowdown strikes?" credit analyst Gabriel Petek wrote in a recent report.

May 12 08:42

European shares dive into the red as Greece warns 'we could run out of money in a couple of weeks'

Shares across Europe have dive into the red after a warning came from Greece's finance minister that the debt-laden nation could run out of money in a couple of weeks.

Yanis Varoufakis warned his country's financial situation is 'terribly urgent' after eurozone finance ministers met in Brussels yesterday to discuss the final €7.2bn tranche of Greece's €240bn European Union / International Monetary Fund bailout.

Greece is struggling to meet repayment obligations and eurozone ministers said Greece had made 'progress' but more work was needed. Earlier, Greece began the transfer of €750m in debt interest to the IMF, ahead of a deadline.

May 12 08:22

'How are they expected to live?' Judge slams theft charge for desperate dad who stole out-of-date food from Tesco

A judge has slammed prosecutors for charging a desperate dad who stole out-of-date food from Tesco with theft, asking: "How are they expected to live?"

Paul Barker, 39, and Kerry Barker, 29, were spotted on CCTV sifting through groceries at the back of a store which were destined for the bin.

The couple are down on their luck and say they have virtually no money to look after themselves or their kids.

May 12 08:16

Toshiba shares go over a cliff after probe into hidden losses

Loss-making projects from 2012 may have been swept under the carpet

May 12 08:15

Canadian mining companies banned in three Salvadorian municipalities

On March 29, Nueva Trinidad became the third municipality in El Salvador to officially declare itself a "territory free of mining" through a historic community consultation.

Canadian mining companies have had a brutal presence in El Salvador. Communities in the departments of Chalatenango and Cabañas have organized to prevent the entry of mining corporations into the municipalities.

May 12 08:11

Hillary Clinton Has 1 Day to Take a Serious Stand on One of the Biggest Corporate Trade Deals in US History

The Democratic Party is now in an all-out war over the Trans-Pacific Partnership (TPP), with labor unions, environmentalists, and other public interest groups opposed to fast tracking the deal – which would allow it to have a vote with no amendments -- battling corporations and President Obama who are for fast track. The big vote on TPP in the US Senate is on Tuesday.

One voice who has been silent in this internecine conflict is Hillary Clinton. Clinton has refused to say whether she supports granting Obama fast track authority, let alone whether she supports the overall agreement. Her campaign chairman, John Podesta, recently joked to some donors that he wishes the deal would just “go away.” She has basically one day to come out and show where she stands on this issue and influence the outcome of the vote.

May 12 08:08

Rainwater collection being criminalized in U.S. to solidify total government dependence

You might be aware that it is illegal to collect rainwater on your own property in some states, but did you know that doing so could actually land you in jail? That is exactly what is happening to Gary Harrington of Eagle Point, Oregon. He is now facing a 30-day jail sentence and fines of more than $1,500.

His crime? Harrington has been collecting rainwater in three reservoirs on his property, and the government doesn't like it. In Oregon, all water is considered property of the state whether it flows from the tap or falls from the sky.

Webmaster's Commentary: 

May 12 08:02

Vatican Bank is the main shareholder in ‘Pietro Beretta’ arms

Perhaps few people know that Pietro Beretta arms factory Ltd. (the largest arms industry in the world) and is controlled by the Holding SpA Beretta and the majority shareholder of the Beretta Holding SpA after Gussalli Ugo Beretta, is the IOR (Institute for Works of Religion [commonly known as the Vatican Bank]) private institution founded in 1942 by Pope Pius XII and headquartered in Vatican City.

May 12 07:53

Deutsche Bank Pays $2.5 Billion Fine for Interest Rate Rigging

Deutsche Bank has agreed to pay out a record $2.5 billion fine to settle U.K. and U.S. government investigations into allegations of fixing global interest rates, just months after six other banks paid out $4.3 billion on similar charges. Activists say that the banks should have faced criminal charges.

May 12 07:50

Verizon Agrees to Buy AOL for $4.4 Billion

Verizon Communications Inc. agreed to buy AOL Inc. in a $4.4 billion deal aimed at advancing the telecom giant’s growth ambitions in mobile video and advertising.

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