ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Oct 24 10:46

Trump Escalates Attack On Powell: "Every Time We Do Something Great, He Raises Interest Rates"

Though the NYFRB's Plunge Protection Team swooped in to rescue US markets later in the afternoon, the sea of red in markets was just one more unwelcome distraction on a day when Trump and his administration already had its hands full with the rolling diplomatic crisis in Saudi Arabia.

And never one to pull punches when he's in a sour mood, Trump once again unleashed on the Federal Reserve and its chairman, Jerome Powell, during a 30-minute Oval Office interview with the Wall Street Journal, once again blaming the central bank for the market chaos that's erupted over the past few weeks. Ignoring the pleas of his closest advisors and practically every financial professional in the US, the president stepped up his attacks on Powell, telling the chronicle of American capitalism that it's "too early to tell" if he regrets nominating the Fed chairman.

Oct 24 10:39

Fury as Germany must pay BILLIONS more to the EU after Brexit

GERMANY will be forced to pay an extra £13.2billion a year to the EU after Brexit, in a move that has sparked fury among Germans who are already the bloc’s biggest contributors.

Germany must find the extra cash to make up the EU’s budget shortfall after the UK leaves the bloc.

The amount will increase Germany’s gross annual contribution to Brussels to a massive £40 billion.

Oct 24 09:49

Palladium Surges To All Time Record High On Russian Supply Concerns

– Palladium prices surge to an all-time nominal high over $1,150/oz
– Russia is one of the top producers and growing tensions with the U.S. may result in a “supply crunch”
– Palladium is widely used in the automotive industry and is experiencing significant demand and a “supply crunch”
– Deep supply deficits in palladium are predicted by Citigroup and other analysts (see Bloomberg table)
– Gold and silver to follow due to similar strong supply and demand fundamentals

Oct 24 09:37

Damned Lies and Statistics

Oct 23 15:40

One in three Debenhams stores at risk of closure as struggling retailer targets 50 outlets in bombshell bid to save £100m

Struggling department store Debenhams is preparing a radical overhaul of its 200-year-old business that will include reviewing its store portfolio and slashing its dividend to zero.

The company, which announces annual results on Thursday, is understood to have identified around a third of its 166 stores to face possible closure.

It is also understood to be preparing a significant write-down of its goodwill – the way companies account for their inherent value – that would result in a one-off charge of several hundred millions of pounds.

Oct 23 14:48

Are Millennials About To Get Slaughtered?

Oct 23 14:35

How Sears Was Gutted By Its Own CEO…

Oct 23 14:28

Ned Schmidt – Stock Market is Broken

Oct 23 12:57

Saudi Arabia clinches $50bn in deals at ‘Davos in the desert’ forum despite Khashoggi crisis

The death of journalist Jamal Khashoggi at the Saudi Consulate in Istanbul hasn’t hindered the kingdom in signing $50 billion worth of contracts at an investment conference in Riyadh on Tuesday.

The deals were signed in oil, gas, infrastructure, and other sectors at the Saudi international business forum, dubbed the ‘Davos in the desert’. Companies involved in the deals include Total, Hyundai, Schlumberger, Baker Hughes, and others.

Oct 23 12:41

Poking the Russian Bear With the NATO Umbrella

Some terrible foreign policy ideas seem to have eternal life. One example is the proposal to expand NATO yet again by offering membership to Georgia and Ukraine. That campaign has gone on for more than a decade and is a significant factor in the West’s deteriorating relations with Russia.

Despite the intra-Alliance resistance to the Bush administration’s campaign to offer MAPs to Kiev and Tbilisi, though, the outcome of the Bucharest summit was not a total defeat for U.S. ambitions. The summit’s final declaration stated that “NATO welcomes Ukraine’s and Georgia’s Euro Atlantic aspirations for membership in NATO. We agreed today that these countries will become members of NATO.” There was no timetable but the ultimate outcome seemed clear.

Webmaster's Commentary: 

Pushing NATO into a war with Russia, and particularly at this juncture in history, is a terrible, terrible mistake.

Unfortunately for the US, just because something would be the most ham-fistedly, pig-headedly stupid thing the US government could do, is utterly no guarantee that the US will not do it.

Oct 23 10:19

Have We Hit Peak Earnings Growth?

Oct 23 09:14

Late Cycle Signals and Yield Curve Dynamics

Oct 23 08:50

Mayor Pugh To Launch $2M Program Aimed To Get ‘Squeegee Boys’ Off The Streets

In recent months, the boys and sometimes men who walk through busy street corners, spraying and wiping windshields for money, known as the “squeegee boys” have become a growing concern for some Baltimore.

Mayor Catherine Pugh announced her vision to get kids off those street corners once and for all. It’s a plan she said will not only get them off the streets but provide them with a better future.

An 11-year-old boy says he does it because he’s in school and just wants to be able to buy things for himself, and a 23-year-old man said he does it to provide for his young family.

Oct 23 08:45

Auto dealers see slowing sales, sparking fears that a long-expected decline is here 

A growing number of auto dealers around the country is seeing a noticeable drop in retail sales and customer traffic in showrooms, raising the possibility that a long-anticipated slowdown in auto sales has arrived.

"We are definitely seeing business pull back," said Scott Adams, the owner of a Toyota dealership in Lee's Summit, Missouri, just outside Kansas City. "September was off some, but this month our car sales are down 12 percent and our truck sales are down 23 percent."

Other dealers tell CNBC they saw a significant drop in sales last weekend. One dealer in metro Tampa Bay, Florida, who asked not to be identified, said sales this month are down 13 percent.

"Customer traffic has moderated," said Mark Scarpelli, president of Raymond Chevrolet and Kia in Antioch, Illinois.

Oct 23 08:39

Sweden Not a Socialist Success

Oct 23 08:34

So you've won Mega Millions - Do you choose the lump sum or the annuity?

And how much will you donate to What Really Happened?!? :)

Oct 23 07:59

Congress Gone Wild: Why Lawmakers Fail to Prioritize the National Debt

National politicians keep abandoning fiscal restraint and their constituents seem fine with it.
***
Those of us who are full-time taxpayer advocates are fond of saying that the country is on our side.

But is it? Well, somewhat.

To understand the issue requires separating two issues that are lumped together in most discussions—the debt/deficit, and government spending. Put simply, caring about one does not mean caring about the other.

>>>

Oct 23 06:52

US shale has a glaring problem

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) and the Sightline Institute detail the “alarming volumes of red ink” within the shale industry.

“Even after two and a half years of rising oil prices and growing expectations for improved financial results, a review of 33 publicly traded oil and gas fracking companies shows the companies posting negative free cash flows through June,” the report’s authors write. The 33 small and medium-sized drillers posted a combined $3.9 billion in negative cash flow in the first half of 2018.

The glaring problem with the poor financial results is that 2018 was supposed to be the year that the shale industry finally turned a corner.

Oct 23 06:41

Crash Alert Now In Play

Oct 23 04:42

Market outlook: bear market starting in 2019?

Oct 22 23:04

Video: Iran Charity Obtaining Bitcoin Donations

The following video shows how a group is forwarding donations to a social welfare charity in Iran:

https://www.liveleak.com/view?t=Hog4_1540128342

Oct 22 18:10

India offloading US Treasuries to support national currency & buy gold

The Reserve Bank of India (RBI) is cutting down on its holding of US Treasuries, joining a number of countries which have been dumping US debt to bolster domestic economies.

The country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee.

Oct 22 14:23

Merkel Opens Up Germany to US LNG, Yielding to Trump's Pressure – Reports

The German government plans to give in to Donald Trump’s criticism about dependence on Russia’s fuel and pour millions into a liquefied natural gas terminal. This is expected to diversify Germany’s energy import, open it up to US gas and possibly avert hostile moves against the Nord Stream 2, the Wall Street Journal reports.

Germany’s Chancellor Angela Merkel has told the country’s lawmakers that the Cabinet is set to co-fund the construction of a liquefied natural gas (LNG) shipping terminal over breakfast this month. The $576 million project would be located in northern Germany, the US business outlet reports, citing the sources familiar with the meeting.

Oct 22 14:21

The American Economy Is Rigged…

Oct 22 11:40

U.S. Shale Has A Glaring Problem

Oil prices are down a bit, but are still close to multi-year highs. That should leave the shale industry flush with cash. However, a long list of U.S. shale companies are still struggling to turn a profit.

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) and the Sightline Institute detail the “alarming volumes of red ink” within the shale industry.

“Even after two and a half years of rising oil prices and growing expectations for improved financial results, a review of 33 publicly traded oil and gas fracking companies shows the companies posting negative free cash flows through June,” the report’s authors write. The 33 small and medium-sized drillers posted a combined $3.9 billion in negative cash flow in the first half of 2018.

Oct 22 11:39

Italy Responds To EU Commission, Admits Deficit Breach But Refuses To Budge

Initial relief over a favorable Moody's downgrade of Italy, which pushed the rating just one notch above junk but kept the outlook stable (which in turn prompted the following sarcastic remark from Deutsche Bank's Jim Reid "If there’s one thing the outlook isn’t for Italy at the moment it’s stable but rating agencies are unlikely to want to create a vicious circle") faded after Italy’s populist government promised it won’t let its budget deficit widen further than currently planned and called for dialogue with the European Union to address their differences.

In its letter response to the European Commission published Monday and seen by Bloomberg, Italy acknowledged Europe's concerns about the budget, but refused to change the proposed plan.

Oct 22 11:38

The first tunnel for Boring Company's underground transport network across Los Angeles will open in just 11 WEEKS, Elon Musk reveals on Twitter

Elon Musk has announced that the Boring Company will open a stretch of tunnel under Los Angeles in just 11 weeks.

The Boring Company founder made the announcement via Twitter and earmarked December 10 for the grand unveiling.

Boring has been working on developing a series of rapid-transit tunnels that can transport people on 'skates' at up to 150 miles per hour (240 km/h).

The stretch of tunnel that will be opened to the public was previously dubbed a 'test tunnel' and sits beneath the suburb of Hawthorne, south of downtown LA.

Oct 22 08:52

Tesla Employees Describe Elon Musk As Polarizing, Wasteful Micromanager In New Expose

A new CNBC expose on Tesla, the product of conversations with 35 current and former employees, has revealed Elon Musk to be a polarizing and wasteful boss who micromanages too much.

The extended report gives yet another look into a personality and work environment that helps explain the exodus of senior executives that the company has suffered over its short lifespan; it also touches on some “creative” accounting allegedly taking place at the company, like defining extra work on production lines as “training” or “research and development”.

Oct 22 08:51

Hasbro will lay off hundreds after Toys 'R' Us' closure

Hasbro will lay off up to 10% of its employees, victims of the fallout after Toys "R" Us closed its doors.

The toymaker has not yet disclosed how many of its 5,400 global employees will lose their jobs. Just over half of Hasbro's staff works in the United States.
"While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into the future," a company spokesperson said in a statement.

Hasbro said the job cuts should save the company between $30 million to $40 million a year by 2020. Hasbro's sales fell 12% in the third quarter, a drop the company attributed primarily to the loss of Toys "R" Us. Operating profit fell 13% in the third quarter, though the company got a slight benefit from the new US tax law.

Oct 22 06:16

US pressures SWIFT to cut off Iran from global banking transactions to enforce sanctions

The US aims to disconnect Iran from the SWIFT global payment network as part of new economic sanctions against the Islamic Republic in November. Disconnection from network would make it difficult for Iran to get paid for exports.

Oct 21 10:48

In Debt We Trust Documentary

- English Documentary -How Money and Credit Control Your Life

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