Demographics

The Invisible Hand Of The Disogranized Masses

The comments this week coming from the so-called elite referencing the ignorant masses have manufactured an aggressive response. Turning entire populations towards revolution takes years of socioeconomic conditioning and the application of downward pressure on civil liberties while also drawing attention to that downward pressure. The disorganized masses through the ultimate expression of self-interest, Adam Smith's 'invisible hand', will inevitably rise up and overthrow those they perceive as being the cause of the problem. The French population was guided by this invisible hand as the people expressed their self-interest through anger at the French monarchy in 1789.

Bob Janjuah Explains All That Is Wrong With The Financial System (And Remains Bearish)

"By dumping the responsibility for the heavy lifting for growth on central banks, we have ended up with asset bubbles, rampant speculation, lack of investment in productivity and in the real economy, significant levels of financial engineering to artificially boost earnings, and merely the (now failed) hope that “trickle down” still works. The outcome has been almost unprecedented levels of rising inequality in the global economy.  I suspect that it is this inequality that was behind a fair chunk of last week’s Brexit outcome and which has driven the rise of extremism across other important nations/blocs."

Greenspan: "This Is The Worst Period I Recall; There's Nothing Like It"

"This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

Morgan Stanley Asks If This Is Just A "1937 Redux"

"Premature tightening of macro policies means risks of a relapse. In 1936, the Fed doubled the reserve requirements for banks and the Treasury began to sterilise gold inflows, slowing the growth of high-powered money. Fiscal policy was tightened, with the fiscal deficit narrowing significantly from 5.1% of GDP in 1936 to 0.1% in 1938. The premature and sharp pace of tightening of policies led to a double-dip in the economy, resulting in a relapse into recession and deflation in 1938."

Wayne State University Drops Math As General Requirement, Will Replace It With "Diversity"

Wayne State University has proposed adding a three credit hours requirement in diversity to the general education curriculum just days after the university dropped math as a core requirement. "We are proposing the creation of specific ‘Diversity’ courses, with students required to take one course in this designation,” said a document from the General Education Reform Committee, which is recalibrating what the university will expect from all students who earn a degree from the state university.

Trump Says Muslims Should Be Profiled

"I think profiling is something that we're going to have to start thinking about as a country," Trump said when asked on CBS whether he supported more profiling of Muslims in America. "It's not the worst thing to do. You look at Israel and you look at others, and they do it and they do it successfully. And you know, I hate the concept of profiling, but we have to start using common sense," he added.

This Is What The Coming "Bond Shock" Will Look Like

The only thing that can halt the tsunami of bond buying, would be a Bond Shock, an event that is certain to take place, the only question is when. As BofA points out, the relentless chasing after government paper will change "if Quantitative Failure spreads from Europe & Japan to the US."  Here's how to time it and what it would look like.

Japan: A Future Of Stagnation

Take a declining population with declining rates of productivity growth and load it up with debt, and you get a triple-whammy recipe for permanent stagnation. There are Degrowth strategies that make sense because they're designed to be sustainable, but first the systems that have been designed to fail - Keynesian stimulus policies and the banking system - must be allowed to fail.

Living 'The American Dream' In These Cities Is Not Possible

"The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement." But that foundation has cracked. It’s one thing to fantasize about living the American Dream from regions outside the United States. It’s another to be already living in America and to not be able to attain it. And while the American Dream ensures that no one is legally barred from reaching their full potential, it doesn’t prevent individuals from being held back in other ways.

"The Fed Has Failed" - A Disturbing New Warning From Bank Of America

"Central banks have lost the “War against Deflation”. They have failed to stimulate animal spirits depressed by the 4D’s of excess Debt, financial Deleveraging, aging Demographics and technological Disruption. This changes if Quantitative Failure spreads from Europe & Japan to the US. A rise in US bank CDS and/or a dive in assets related to consumer & housing credit would be very negative for global asset prices in our view. Note the new whispers of a peak in the US consumer credit cycle which, if true, at a time of zero rates in an $18 trillion, consumer-led economy would be concerning."

FBI: US Homicide Rate At 51-Year Low

The US homicide rate in 2014, the most recent year available, was 4.5 per 100,000 - the lowest since 1963. So, do more guns equal more crime? The data would seem to indicate the answer is "obviously not." Nevertheless, President Obama called on The Senate this afternoon to "rise to the moment" and pass gun control...

European Peripheral Bond Risk Explodes: Forget Brexit, "Now It's Italy's Turn"

If there was any doubt that Brexit was "relevant" then the surges in European peripheral bond risk, despite massive bond-buying by The ECB, should send shivers up and down the status quo huggers that are shrugging the referendum decision off because "central banks will provide liquidity." However, it's not just The UK that EU officials need to worry about, as The Globalist notes, Germany will have to change its policies if it wants to avoid exit of other countries from the eurozone.

USDA: People Make The Choice To Eat Unhealthy Food

"...results suggest that improving access to healthful foods by itself will likely not have a major impact on consumer diets or generate major reductions in diet-related disease." Or, you can lead a [low income] horse to water, but they'll still drink Cherry Coke.