Bloody September

ilene's picture

Bloody September  

 Courtesy of Lee Adler of the Wall Street Examiner  

The following paragraphs are free excerpts from today’s Wall Street Examiner Professional Edition Treasury update. 

As I estimated last week, the Treasury needed more cash than originally scheduled, or originally forecast by the TBAC. It announced a big cash management bill on Monday, and another one on Thursday to be auctioned next week. That should be enough for now, but revenues appear to be going off a cliff, with declines in withholding taxes now at the point where withholding is down year to year in real terms. That’s after being up strongly in May. It suggests that the US “conomy” entered recession over the past couple of months. Meanwhile, while the evidence suggests that the conomy has already been in recession, mainstream conomist pundits continue to argue about whether the conomy will have a double dip or not. While they are trying to figure it out, the damage to the financial markets is fait accompli, and will get worse.

Month to date excise taxes as of August 31 were down by 10%, compared with virtually unchanged at the end of July. Part of this was due to the temporary expiration of the aviation excise tax from July 23 to August 5, when it was reinstated. Since the tax was again being collected since August 7, most of the decline in the tax does appear to be due to less driving, drinking, smoking, air travel, and firearms purchases, in other words, all the fun stuff, among other things. The data suggests that the economy fell off a cliff in August.

Federal Excise Taxes Chart- Click to enlarge

Corporate taxes were down 23%, month to date versus last year. This is a sharp deterioration from the year to year change at the end of July when it was only down 17%. Because these are estimations based on the most recent quarterly activity, they suggest weakening economic activity. However, we must note that July and August are not months when quarterly taxes are due. The last big collection month was June. September is the next.

This is scandalous considering the outsized corporate profit reports. We have a serious problem of corporate undertaxation in the US, and an even bigger perceptual problem thanks to the politicians who call for no new taxes on “job creators.” The problem with that little rhetorical flourish is that the truth is that they are job destroyers and job exporters. If they are creating jobs, they certainly are not in the US.

Click here to try WSE’s Professional Edition risk free for 30 days! 


[Soundtrack: Wake Me Up When September Ends.]

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
chinawholesaler's picture

Wholesale Pen
Lunch Box

Health Care Products
Wholesale Ashtray
Muslim Products

Silicone Products
Wholesale Compass
Consumer Electronics

Wholesale Scissors
Wholesale Puzzle
Wholesale Fan

Wholesale Scissors
Wholesale Shoe
Wholesale Stress Ball

Wholesale Magnifier
Wholesale Dartboard
Promotional Items

Electrical Gifts
Wholesale Clothes Rack
Wholesale iPod iPhone

Wholesale Flag
Personal Safety Products
Industrial Supplies

Wholesale Compressed Products
Silicone Products
Wholesale Massager

Wholesale Swimming Products
Inflatable Products
Name Card Holder

Wholesale Raincoat
Wholesale Banner
Flash Gift

World Cup Products
Eye Mask
Wholesale Compass

Valentine Gifts
Wholesale Clap Hands
Wholesale Radio

Wholesale Calculator
Wholesale Sticker
Wholesale Halloween Gift

Wholesale Lighter
Wholesale Bedding
Silicone Bakeware

Personal Safety Products

chinawholesaler's picture

Patient Care Products Hair Products
Wholesale Stationery

Wholesale Keychain
Vocal Concert Products Stuffed Animals
Heating Products

Digital Photo Frame
Electroluminescent Wholesale Gift Bags
Solar Products

Fishing Supplies
Lunch Box Wholesale Mouse
Wholesale Clothes Rack

Wedding Favors
Reflective Safety Vest Wholesale Pom Poms
Wholesale Ashtray

Wholesale Watch
Wholesale Camera Eye Mask
Wholesale Compass

Valentine Gifts
Safety Products Patient Care Products
Money Bank

Sport Support Products
Wholesale Scarf Wholesale Raincoat
Wholesale Watch

Computer Accessories
Promotional Gifts Wholesale Waterproof Case
Bottle Opener

Garden Decorations
Audio Video Equipment Coca Cola Gifts
Sport Items

Coin Bank

Dugald's picture

 

 

5 to 15 years.........that's a relief, I'll be dead by then!!

Parth's picture

Just use the right inflation figures and some show we have been in recession a while now.

Victor Berry's picture

Our property-owning, white male founding fathers said we are endowed by our Creator, not Job Creators, with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

As H. Ross Perot noted in 1992, the giant sucking sound was NAFTA sending our manufacturing jobs to Mexico.  That was nothing.  In 1995, the WTO generated a ginormous sucking sound which was all our jobs being sent to the rest of the world.  Now, Washington, D.C. is trying to bring all those low-paying jobs back to the U.S. but its sucking sound has the strength of only a silent fart passed in your direction.

LawsofPhysics's picture

A sad state.  Ross Perot now appears to be one of the smartest guys in the room.  Is that old coot still alive?  Help us Ross Perot, you are the republic's only hope.

PulauHantu29's picture

September will be worse:

After bruising August, brace for September

September is the worst month on the calendar for stocks, with losses averaging up to 1.2%, according to Mark Hulbert, who says that after a lousy August there's evidence September comes in worse. Laura Mandaro reports.
 Watch Video Report.

LawsofPhysics's picture

I don't know guys.  Up is down, down is up, right is wrong, alwasy this way before the collapse of any republic.  In this case, stocks will be worthless, but "priced" to the moon.

anony's picture

1.2% ???????????????

That's not even statistically whatever.

If all that is lost is a measly 1.2, and Hulbert considers that "lousy", he ought to seek another line of work.

RSloane's picture

Its going to be quite painful.

BernankeHasHemorrhoids's picture

Obama is a criminal Muslim who should be hunted down like a dog.

Dick Fitz's picture

No doubt 0bama is PART of the problem, but GWBu$h (and Clinton and Reagan and their congress') all had a hand in it. Blaming it all on 0bama is foolish- it is endemic, and systemic.

-1,000 for being a partisan fool.

Stack Trace's picture

Die troll so that your blatant ignorance might die too.

marcusfenix's picture

here you go-

www.foxnews.com

your fellow fake left/right paradigm neocon sheep herd members await you with open arms.

Kina's picture

Hope the FBI track you down and shove a 24" silver dildo up your arse for posting such moronic crap.

 

Go pollute some other blog.

bankruptcylawyer's picture

this debate is absurd, we all agree that the numbers are not only bullshit, but that they have been manufactured by the banking classes for decades. 

 

look at the average person in the average state. the economy never came out of recession. anytime i see talking heads regurgitating talking points in a debate about whether or not we have recession i simply switch the channel. 

silly. the only thing keeping this economy from falling off a cliff is government subsidizing wall street. allowing people on cnbc to discuss if the rich and aspiring wall streeters are themselves experiencing recession when the rest of the country never stopped experiencing it. 

 

 

Whatsamatta_u's picture

Wealth is a pernicious thing.  The wealthy that control finance and government are at issue.  They rent seek lower taxes on capital gains, no taxes on wealth, and tax dodges via not-for-profits to gain and maintain power and increase their wealth at the expense of the commoners.  

This is not a failure of capitalism. It is a failure of democracy. Politicians are easily bought. Absent the Gilded Age accumulation of wealth, we would not have the FED, taxation, and the concentration of power in the Wall Street / DC Axis.  This was accomplished by Gilded age bitches compensating for other deficits.

We need to consider not taxing income but truly taxing wealth.  At least enough to create a check and balance.  

 

 

anony's picture

You cannot keep a democratic republic from becoming a maggot infested non-government that only works for the top 10% that is exempt from the very laws it passes.  

The notion that you can do it for a peoples numbering in the hundreds of milliions is ridiculous, utterly ridiculous.

The travesty that is D.C., a wholly different country, from the rest of the 51 states, which rules like royalty, yet does not vote, flourishes while the people in the country it governs, become evermore worse off, is the stuff that assassinations, revolutions, and anarchy are made of.

When is everyone else going to wake up to this known fact?

Is it only the Anonster that can see this? 

Is everyone else as blind as Mr. Magoo?

papaswamp's picture

"conomist"....love it!

heyligen's picture

Yeah, I don't understand why they have no "conomy" departments at Harvard and Princeton, they are just forgetting the most fundamental driving factor.

Ironmaan's picture

Silly article. Fact is,  American companies pay the 2nd highest corporate tax rate in the world (39.21%).  Second to Japan. Don't give me this BS that they need to pay more to help the economy. When reading this article I couldn't help but picture the author as a 1970's flower child, that never uses her faculty of reason, only her feelings.

If jobs are the issue then take aim at Mr. Obama and his stupid policies.

Does drilling or not drilling for oil in this country helps create jobs?

Do you think EPA regs that cost business billions (by BO's administrations own account) creates or destroys jobs?

EPA shuts down coal mines. Create jobs?

Obamacare requirements for business. Is business more likely or less likely to hire?

Obama's just created Office Of Diversity. More big brother ramming shit down business throats.  More or less likely to start a business?

Government needs to GET THE FUCK OUT OF THE WAY and things will improve.

snowball777's picture

the 2nd highest MARGINAL corporate tax rate in the world

Take a look at their effective rate PAID and then STFU, ignorant.

Heroic Couplet's picture

Ironmaan stateth:

"Fact is,  American companies pay the 2nd highest corporate tax rate in the world (39.21%)."

I thought your ilk states that corporations don't pay taxes, they just pass through to the consumer."

You need to show me where any corporation is paying 39.21% taxes, which is a moronic figure in and of itself, and I need to see it notarized. You can't have it both ways. The US tax code is convoluted because of trade-offs on taxes.

Cardiodoc's picture

This is the new anti-government (anti-Obama) orthodoxy:  the burden of regulation has destroyed business confidence, and only if we could restore confidence will we emerge. 

Despite the ramming from government, corporate balance sheets and earnings are strong.  We don't really have to worry much about environmental regulation because we don't make that much here any more.  Better worry about the environment behind the bamboo curtain where most of the stuff we cherish gets made.

And get government out of the way of finance?  So they can lever themselves up, sell garbage to the unsuspecting, profiting in its creation and in its collapse, and then return to the discount window, hand-extended, when the whole rotten system begins to totter.

Business ultimately requires a customer.  The customers in the US, the consumer, is against the wall.  We have borrowed and borrowed, since Reagan, to sustain the illusion that we can afford this first world existence.  We are at the end of empire.  Deregulating business, throwing away environmental protection, and desperately drilling for an ultimately finite resource (oil) will put off the day of reckoning, perhaps, but doesn't represent the paradigm shift that will be "rammed down our throats" by the reality of a system both politcal and economical, which is not sustainable.  Tighten your seatbelt.  Obama, Bachman? Palin, Romney? it doesn't matter much, it's crumbling around us.

anony's picture

Wonder if we live long enough to see what replaces a 'democratic republic'?

blunderdog's picture

If you're alive today, you're seeing it.  It's called "Fascist Totalitarianism."

The people exist solely as a resource to be exploited by the owners of the country, kept complacent by amusement and a meaningless electoral process.

anony's picture

People have always been exploited and always will  because they have allowed themselves to be seduced by the temptations of our lesser angels.

Sex, voyeurism, schadenfreude, and other diversions are permitted to take up an inordinate amount of the masses' time here on earth.  They have it within their power to turn away from pleasure----not entirely--- for at least half the time and invest it in other pursuits that are bound to be more beneficial in the long run for them and if not, for their progeny, and a substantial, not superficial sense of genuine self-worth.

A rigorous exercise program practiced at least 4-5x a week, taking at least an hour and half, alone, would do wonders for our diabetes and obesity pandemic, to say nothing of curing depression, anxiety, and anger issues.  Couple that with 5 hours of a learning program about finances and their own representatives' voting records would provide them with more ammunition to throw out their incumbents and keep turning over their government so that the lifetime guarantees incumbents enjoy would end in about 4 years time.

I agree that many are expoited but the people are not doing much if anything about taking on at least part of the responsibility for their circumstances.

I don't feel exploited any longer because over the last 10 years I have done those things above and never fail to notify my local and national politicians that they are complete assholes when they act like it.

 

 

 

blunderdog's picture

Individual change and growth leads to happiness, but there's no reason to believe it leads to good government.

That's why I'm an anarchist.  I don't believe in political solutions.  You seem to think the issue is that the wrong people are in office--I think the outcome would be similar no matter who was in office, because this is the outcome the system is designed achieve.

The individuals are placeholders for the institution's operations.

swissbene's picture

nicely said.

the corporate-government-military criminal parasites of the current era are thoroughly disappointing and dangerous.

however culture in the US is also quite sick.  the current employment catastrophe has complex drivers admittedly, but there is a shocking failure among the population to make productive use of time.  many seem content to piss away time rather than achieve some benefit to self or others.

it is common view and expectation that employment should be provided by someone else (most often this is expected of the politician class).  these braindead robot-citizens may be exploitable, but they are basically useless beyond the most basic functions (eg consumption in response to marketing, occasional voting, avoiding dissent and related critical thought).

to learn technology, study arts or math, provide assistance in community, contribute positively to environment, etc -- these are increasingly beyond the imagination or ability of average citizens.

Cardiodoc's picture

This is the new anti-government (anti-Obama) orthodoxy:  the burden of regulation has destroyed business confidence, and only if we could restore confidence will we emerge. 

Despite the ramming from government, corporate balance sheets and earnings are strong.  We don't really have to worry much about environmental regulation because we don't make that much here any more.  Better worry about the environment behind the bamboo curtain where most of the stuff we cherish gets made.

And get government out of the way of finance?  So they can lever themselves up, sell garbage to the unsuspecting, profiting in its creation and in its collapse, and then return to the discount window, hand-extended, when the whole rotten system begins to totter.

Business ultimately requires a customer.  The customers in the US, the consumer, is against the wall.  We have borrowed and borrowed, since Reagan, to sustain the illusion that we can afford this first world existence.  We are at the end of empire.  Deregulating business, throwing away environmental protection, and desperately drilling for an ultimately finite resource (oil) will put off the day of reckoning, perhaps, but doesn't represent the paradigm shift that will be "rammed down our throats" by the reality of a system both politcal and economical, which is not sustainable.  Tighten your seatbelt.  Obama, Bachman? Palin, Romney? it doesn't matter much, it's crumbling around us.

zeroman's picture

So GE pays 0 and thats fair? and they export jobs. What we need to do is lower tax rates. ELIMINATE TAX LOOPHOLES LIKE BULLSHIT GE, AND GIVE THEM 1 NEW TAX LOOPHOLE.  GIVE THEM A PERCENTAGE TAX CREDIT BASED UPON HIRING NEW EMPLOYEES FROM THE UNEMPLOYMENT OFFICES.  IF THEY HIRE 10%, THEY GET A 10% TAX CREDIT. THEN, WE CONTINUE THIS FOR A FEW YEARS AND START SCALING IT BACK.

Ironmaan's picture

Dont get me wrong. GE's situation is completely unfair. Its absurd that they pay zero tax, and  I think you would agree they are in bed with govt. Imelt sucks off Obama daily and gets preferential treatment. I want Govt out of business and banking completely. They should have let the banks fail for their stupidity and let GM fail for its stupidity, but they've been bailed out and the silliness will continue. It will continue and people will continue to whine that somebody i.e, government shoud DO something, when thats the whole fucking problem.

Lastly, its all math; and for those that are now in a world of shit because they borrowed and spent themselves into a problem, I say, good for you, you stupid fucks.

Sometimes it rains, quit blaming the weather, when its your fault you don't have an umbrella.

http://guerillatics.com

Henry Hub's picture

Any U.S. corporation paying 39.21% tax should fire their CFO. In reality most major corporations pay very little or no tax.

http://www.reuters.com/article/2008/08/12/us-usa-taxes-corporations-idUS...

David99's picture

Every year to get higher bonuses, the perfect timely plan is to "create crisis at the right time, right place" and get QE gifted trillions.
Fraud Street has become so perfect that they will bring all bad data / results during Sept / October of each year so as to scare WH/FED/Capitol Hill so as to get maximum trillions before Christmas. The "operation twist" is going on for many years and will continue for next many years till USD is no more "reserve currency"
When the rest of the world will realise that USD is in the toilet, there would be a World War and whoever will win will get the status of "reserve currency"
Note down this above comment by David in your diary. However having said that, it will take few more years (say 5 to 15 years from now) to have WW3

johnnynaps's picture

So, when taking into consideration the amount of unethical BS our Gment shoves down our throats......what does that make the taxpayer? What does that make the entitlement scam artist?

getplaning's picture

There has been a historic shift of taxation off wealth and property onto industry and labor. Accounting technology has prevented any gains from the increased efficiency and productiviy of the workforce (the ACTUAL producers) from "trickling down"  and enormous investments in lobbying have changed tax codes in favor of the investor class. So Tiffany's is breaking record growth and profits, and Lamborghinis are back-ordered all the way to the factory, and Manhattan apartments are still fetching record prices.

It's time to stop trying to tax income and gains, because accounting is able to keep capital two steps ahead of the tax office. It's time to tax net worth, wherever it lies. And if hidden net worth is discovered, it should be taxed at punitive rates. Use it or lose it, as they say.

johnnynaps's picture

And......assuming you are a member of the productive class and you have a job in which you pay taxes on, why are you contributing to the BEAST still if you are so animate about the abuse you pay for? I agree with you but I am not paying an income tax right now! Let me guess what that makes me.......oh yeah, a leach.

OldPhart's picture

Be careful what you wish for!  If those fuckheads at the IRS get wind of your idea we'll all wind up paying tax on our net worth (net net worth, after taxes of course).  Don't give the gun fodder in our government any ideas because they will begin immediate experiments on us.

goldfish1's picture

conomy

conomist

excellent

Freddie's picture

Bille Joe Arsehole of Green Day got booted off a SW Air flight tonight because he had baggy pants falling off.  50 year old dude wearing baggy pants like a prison bitch. He tweeted it to his fans like a crying sissy.

snowball777's picture

So let me get this straight. You approve of the nanny state protecting passengers from Billie's buttcrack?

Simp.

blunderdog's picture

I think the libertarian ideal is that private corporations can serve or refuse to serve anyone for any reason.  SW Air isn't the government.

snowball777's picture

And that "ideal" better include the notion that patrons can bitchslap stupid companies into rational behavior using social media. You really think it was the stewardess that took him off the flight?

"Very sorry for your experience tonight, someone from our Customer Relations Team will reach out to you to get more details."

Kali's picture

Arrested development.  Most adults in this country have never progressed past infantilism. 

RockyRacoon's picture

I guess that explains the national obsession with breasts, by both males and females.   Or could that just be the male equivalent of the penis envy theory?

anony's picture

Whoaaa! you go too far..... What connection does a favorable view of symmetry, heft, circularity, touch and suckability have to do with economics?

Are you a perv?

 

Species8472's picture

The economy did go over a cliff, I do quotations for my company, and new RFQs has dried up, very very slow.

JustACitizen's picture

Any dollar that I can avoid spending in a way that benefits a big/multinational company is a tiny victory - and it is worth the effort. It feels futile - but - it is better than nothing.