Reality

The Reason Why There Is No Wage Growth For 83% Of US Workers

For all who are still confused why there are no wage hikes despite the Fed's relentless efforts to micromanage the economy and stimulate wage growth via trickle-down record high stock market prices, the answer is that there is wage growth. Just not for 83% of the working population. 

Janet Yellen: A 'Bear' Late & A 'Dollar' Short

There is grave danger in the lack of momentum, as momentum serves as an indirect proxy for belief and rationalizations. Once they fade away it is harder to deny reality any longer. At the very least, top or not, it seems as if investors all across the financial landscape are themselves are losing faith not just in monetary policy and the economy but maybe even the idea that this was anything more than yet another bear market rally. Even Janet Yellen might think so; after all the “dollar” beat her to it.

The Nazi Economic Mirage

Hitler’s policies are still viewed to this day as a great example of how unprecedented government intervention fixed a dire economic problem. In short, Hitler laid a golden egg and produced an economic miracle. As early as 1933, even before any miracle could be seen, the New York Times had nothing but praise for his ambitions, according to the following front page headline: “There is at least one official voice in Europe that expresses understanding of the methods and motives of President Roosevelt—the voice of Germany, as represented by Chancellor Adolf Hitler.” Unfortunately for the people living under the Third Reich, this was never allowed to happen. All of these efforts became increasingly subordinated to the logic of war.

98% Of Q1 Consumer Credit Was Used For Student And Car Loans

In a quarter in which US GDP is set to decline consumer credit, according to the latest update from the Federal Reserve, increased by just over $45 billion. But how is it possible that with such a massive expansion in household credit there was no actual benefit to the underlying economy? Simple: 98% of the credit lent out in the first quarter, or $44.3 billion, went to student and car loans!

3 Things: Trade, Confidence & Momentum

The market is currently engaged in the longest bull run in history without a 10% correction. The decline in momentum, the weakness in economic underpinnings and lack of Central Bank interventions (not to mention the threat of an increase in overnight lending rates) certainly provide the necessary ingredients for a sharper than expected correction this summer.

When The Elites Wage War On America, This Is How They Will Do It

The consequences and patterns of war, whether by one nation against another or by a government against the citizenry, rarely change. However, the methods of war have evolved vastly in modern times. Wars by elites against populations are often so subtle that many people might not even recognize that they are under attack until it is too late. Any defense the American people might muster against elitist dismantling of constitutional liberties would inevitably turn to "insurgency". So using CFR member Boot’s views on counterinsurgency as a guideline, here is how the elites will most likely wage open war on those within the American population who have the will to fight back.

Two-Thirds Of Workers Plan To Fund Retirement With Inheritance, HSBC Finds

66% of working age people surveyed by HSBC indicated they plan to depend at least partially on an inheritance they may or may not receive to fund their retirement. Ironically, a quarter of respondents in the same survey said they planned to spend all of their money before they die, leaving the next generation to fend for itself.

Repatriation Of Gold From Fed Suggests Historic Vote Of No Confidence

Since 2012, there’s been an unprecedented call from foreign nations to repatriate their gold from Federal Reserve vaults in the U.S. This is an incredible development given many countries’ 71-year reliance on the Fed as a custodian for their bullion. Something huge must of happened in the last few years to prompt such action. That something may be a break in foreign gold holders’ trust in the Fed as a custodian of their precious metals.

Does The Stock Market Matter?

There is a practical benefit to shifting our attention away from the stock market. Any market that can yo-yo 10% within a day for no apparent reason, or undergo multiple booms and busts in a 20 year period should not be given too much credibility. The wealth-effect on the way up always turns into the wealth-destruction effect on the way down.

Chuck Norris Pledges To Protect Texas From Federal Invasion

Chuck Norris has a (long) message for "progressives" who think the paranoia surrounding the federal government's Jade Helm military exercises amounts to what Texas Republican Todd Smith branded "hysterical idiocy." In a new blog post, Norris — also known to some as Walker Texas Ranger — invokes Ben Franklin, Thomas Jefferson, a Navy SEAL he met at a dinner party, and an antique store owner on the way to warning the government to stay off of his ranch.

Florida Man Faces 15 Year Sentence For Sex On A Beach (But Still No Bankers In Jail)

This is what “justice” looks like in the Oligarch States of America. If you’re a pleb who gets caught having consensual sex on the beach, you’re immediately convicted and face up to 15 years in the gulag. Meanwhile, if you’re a banking executive responsible for crashing the global economy, you’re rewarded with trillions in taxpayer bailouts and backstops and given free reign to continue your crime spree.

China Faces End Of "Migrant Miracle" As Demographic Ceiling Imperils Economy

China is faced with a new reality wherein the very conditions that have supported the country's rapid economic growth may now be set for a wholesale reversal, as the "migrant miracle" gives way to a consumer-driven economy characterized by rising wages, decreased savings and investment, and falling export competitiveness. Meanwhile, what was once a "demographic dividend" is quickly becoming a "demographic deficit" as the number of working-age Chinese begins to decline. Beijing's response to this new reality will go a long way towards shaping the country's economic future.

lemetropole's picture

Rant Time

As is almost always the case, the price of gold was leaned on at the standard PLAN A time in London when The Gold Cartel traders reported for work, but their nudge was thwarted pretty quickly. Gold took off again going into the Comex trading hours and managed to reach $1200 where it was stopped dead in its tracks. James Mc early this morning…