The illusion that the tide of "prosperity" is lifting all boats is dissipating into a mist that no longer offers cover to obscenely wealthy politicos disclaiming the ugly reality of rising wealth/income inequality. The question for the chattering classes is this: will the bread and circuses of sports, random shootings, Trump and the rest of the churn in the media arena be enough to distract those stuck in leaky rowboats from the political fund-raising parties on the grandiose yachts?
Don't look now but Greece (remember them?) is headed back to the polls on Sunday in an election that pits a watered down version of Alex Tsipras and Syriza against the conservative New Democracy. With Syriza's original vision relegated to the realm of "wishful thinking", Greeks face a choice that really is no choice at all.
As we have maintained continuously, rate hike talk from the Fed is just a bluff to disguise its inability to tighten, as even small increases could be sufficient to prick the biggest bubble it has ever inflated. When will these "experts" finally connect the real dots and discover that the monetary medicine that the Fed has doused over the economy since 2008 has only created a weak and utterly dependent economy. A rate hike is supposed to be a signal that the economy has a clean bill of health. But as the patient fails to recover, another dose of QE will be just what the doctor orders.
The greater the economic freedom, the wealthier and happier the people. States with more libertarian free market policies enjoy better results: greater median incomes, a more equitable distribution, less poverty, greater success for minorities and immigrants, and higher overall levels of happiness and well-being. In the political rhetoric landscape the battle of ideology is fierce and filled with demagoguery; in the real world the difference in results between competing economic policies are strikingly clear.
The gold market seems to have bifurcated: one market for largely paper speculation and high leverage, and another for the purchase and distribution of actual physical bullion. This is a problem because the attitude towards gold among the status quo in the West has become rigidly dogmatic, supported by years of lazy thinking and a determined the campaign of ridicule and propaganda to try and extend the unsustainable. There is going to be a reconciliation of attitudes and realities at some point, and like vast tectonic plates unable to move but building greater and greater pressure, the longer that the status quo and their courtiers try to maintain their modern aristocracy, the more dramatic that change may be when it finally comes.
A new study published in the PLoS Medicine journal has found that younger people taking antidepressants are more likely to commit violent crimes.
We advise investors to fade out the short term noise emanating from the Fed today and from Janet Yellen and focus on the reality
The simple fact that the Fed is struggling to increase interest rates from near 0% after seven long years should give pause for concern. It underlines the vulnerability of the U.S. economy and means that another recession is very likely. Indeed, the huge levels of debt at all levels of U.S. society and the significant increase in global debt levels during the last seven years mean that another recession is almost certain.
How did our financial system weaken to the point where a quarter of a percent increase in rates is more than it can handle?
With a complex and disaster-prone system of interdependence causing social strife and chaos, why not just simplify everything with a global currency and perhaps even global governance? The elites will squeeze the collapse for all it’s worth if they can, and a Fed rate hike may be exactly what they need to begin the final descent.
A perfect storm of Islamophobia and technophobia (as Wired.com's Marcus Wohlsen so eloquently put it) has erupted in Texas where high-school freshman Ahmed Mohamed was arrested Monday after bringing a homemade digital clock to MacArthur High. A teacher at the Irving school exclaimed "it looks like a bomb," resulting in a call to police. By mid-afternoon, police were leading the boy out of school in handcuffs and taking him to juvenile detention on suspicion of making a "hoax bomb." As Mike Krieger sums up so perfectly, America is a deeply fallen nation. I don’t know how obvious it has to become before people come to grips and start to do something about it.
Assad Says Europe Is Responsible For Refugee Crisis: "If You're Worried About Them, Stop Supporting Terrorists"Submitted by Tyler Durden on 09/16/2015 13:10 -0400
"If you are worried about them, stop supporting terrorists. Can you feel sad for a child's death in the sea and not for thousands of children who have been killed by the terrorists in Syria?"
NAHB Sentiment jumped (again) to 62 (from 61) - its highest since 2005. The last time homebuilders were this exuberant, home sales collapsed.. reminding us of Upton Sinclair's classic line, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” In this case, with mortgage applications indicating anything but a healthy housing market, "It is difficult to get a homebuilder to admit all is not well when his entire career depends on his ignorance of reality."
The OECD is well aware of the possibility that a Fed hike could plunge emerging markets into chaos. Nevertheless, the time to hike is apprently now...