Corporate America

America's New Impossible Trinity: You Can't Have Higher Wages, Steady Inflation And High Profits At The Same Time

America’s ongoing labour productivity slump has created a new impossible trinity – policymakers can only choose two of the following three desirable outcomes: higher nominal wage growth, steady inflation and high corporate profits. The theory behind this new ‘impossible trinity’ is intuitively simple. If workers’ wages rise faster than their productivity, the companies paying those higher wages face two choices. They can either pass on the extra costs to customers, thereby leading to higher overall prices and rising inflation, or they can absorb the extra costs resulting in lower profit margins.

SocGen: "Now We Know Why The Fed Desperately Wants To Avoid A Drop In Equity Markets"

"The catalyst for a balance sheet crisis is rarely the affordability of interest rates, so a 25bp rise in Fed rates is neither here nor there. Credit market risk is about assessing the likelihood of getting your money back. As such asset prices (i.e. equity markets) and asset price risk (i.e. equity volatility) are far bigger concerns. So all you need for a balance sheet crisis is declining equity markets, a phenomenon the Fed appears desperate to avoid. Now we know why."

Year Of The Outsider: Why Bernie Sanders' Democratic Rebellion Is So Significant

2016 was supposed to have been the year of Jeb Bush versus Hillary Clinton: the year when the established Bush dynasty confronted the upstart rival Clinton Dynasty. But the year of the insider has turned into the year of the outsider. On both sides, voters have unexpectedly given vent to thirty years of accumulated anger with neoliberalism which has downsized their incomes and hopes. Though the Republican rebellion has been more clear-cut in its dismissal of insider candidates, it is Bernie Sanders’ Democratic rebellion that is of potentially far greater historic significance.

A "Generational" Peak In Corporate Profit Margins

Falling profit margins and rising valuations (as earnings fall) make for a pretty bearish one-two punch for the stock market. Investors will surely become less eager to pay higher valuations for companies growing more slowly. That equation usually works in reverse. And there’s no reason we can see to expect these challenges to corporate profit margins to let up any time soon. The S&P 500 now trades at its highest price-to-earnings ratio since the bull market began even as the index remains well off its recent price highs. And profit margins still could have a long way to fall before even reaching their average level since 1950.

Alice In Wonderland - Why Everything Is Nonsense

The entire Deep State complex is at the heart of the nonsensical, corrupt, and fraudulent system... Expecting the Mad Hatter to protect you? Or the Cheshire Cat? Good luck with that!

Fascism, American Style

If Donald Trump is a fascist - as nearly half of Americans surveyed believe - then so is every other politician in office or running for office in America who has ever prioritized money and power over human beings. Consent of the governed, however, no longer applies. Actual control has finally passed to the oligarchic elite controlling the government behind the scenes.

Cuban Caption Contest: "Che-Che-Changes" Edition

“I don’t know Obama in person... but he came to power in an election, not a revolution. He was supported by corporate America,” Guevara says. “The colour of skin is one thing, the colour of ideology is another.

Mitt Romney Is The Real Super-Fraud: Here's The Proof, Chapter And Verse

"...the GOP establishment’s putative “jobs” candidate from 2012 was never really a businessman at all. Willard M. Romney is no expert on shiny things on a hill. The country would be far better served if he would get his dimming light back under a bushel where it belongs."

Donald Trump Responds To Romney's 'Roundhouse' - Live Feed

Following the unprecedented Romney roundhouse kick to Trump's character, The Donald is about to rebuff "the loser." As John McCain backs Romney's rant, it appears yesterday's Koch Borthers, Icahn, Murdoch mega-donor call for a truce has been broken as Trump prepares to return fire against "failed candidate Romney" and his establishment cronies.

Terminal American Apathy - A Population Perfectly Ripened For Authoritarian Control

When considered carefully, apathy - American apathy - is a serious crime. A crime against world humanity. The checks and balances by humans on Empire are permissively missing in empirical America. Americans are thus complicit in the further daily destruction of the remaining world they wish to know little about. When the dust of the oncoming rampage of history has settled over the folly of this American empire, guilt for its accumulated horrors will sit squarely on the American people’s heads, as much as the shoulders of their obviously treasonous politicians.

The Great Corporate Earnings Fraud

Corporate earnings reports for the fourth quarter are pretty much in the books. The deception, falsification, accounting manipulation, and propaganda utilized by mega-corporations and their compliant corporate media mouthpieces has been outrageously blatant. It reeks of desperation as the Wall Street shysters attempt to extract the last dollar from their muppet clients before this house of cards collapses.

The Absurd Notion Of "Transitory" Is Dead

If it looks like a recession from so many different angles, chances are very good that it is. It is so consistent that even the stock market has finally awoken. The problem, the real problem, is as Nordstrom’s struggles suggest with inventory – it is only beginning. The OECD, for one, is right to be suddenly alarmed, though, as usual, it would have been far more helpful and relevant last year instead of further fostering the absurd notion of "transitory." Like Bernanke was in his turn, Yellen will be the last to admit it. Sadly for her, she can’t eat the unemployment rate.