“Calling our society a democracy is very misleading... We’re not a republic; we’re not a constitutional republic. We live in a state that’s dominated by these technocratic agencies.” Thiel says that organizations like the Federal Reserve have been allowed to roam too far, calling government agencies “deeply sclerotic and deeply nonfunctioning.”
"It is hard to be “reasonably confident” in the inflation outlook given current economic conditions, unless several inflation drivers rise at the same time. We therefore do not have much confidence in the inflation outlook and believe that the right policy would be to put hikes on hold for now."
- Goldman Sachs
The drought in California is getting a lot worse. In fact, California has been losing more than 12 million acre-feet of groundwater a year since 2011, and wells all over the state are going dry. Once the groundwater is all gone, what are people going to do?
Russia Plans Missile Defense System Drill Near Southern Border As North Korea Test-Fires Short-Range RocketsSubmitted by Tyler Durden on 04/03/2015 21:15 -0400
With 'shocked' OSCE observers noting that the Minsk accord ceasefire is not holding in Ukraine's Shyrokyne, it appears sabre-rattling around the world is picking once again. Military exercises in Russia's Astrakhan region, conducted successful launches of the 'hypersonic' S-300 anti-aircraft missile systems, repelling an "enemy" air assault. This follows another drill invloving ten aircraft including helicopters in simulated attacks by an "enemy" near the Chinese border. Meanwhile, North Korea has test-fired four short-range missiles into the sea off its west coast, in protest at US-South Korean military drills, which are currently ongoing, and a 2nd drill is underway " supervised by Kim Jong-Un."
At its core, currency manipulation is any intentional intervention that results in an undervalued currency and a substantial current-account surplus – exactly what the ECB is doing. If the ECB maintains this policy for an extended period, tension with the US is all but inevitable – tension that may obstruct the TTIP’s approval by the US Congress or hinder the treaty’s actual operation, resulting in its deterioration or termination. This runs counter to the popular view, which drove the eurozone’s creation, that Europe needs a single currency to compete with large economies like the US, China, and India.
"I think Kerry will get an enormous amount of credit for pulling it off. He will be in line for a Nobel Peace Prize... He could go down in history books as being a monumentally important character, like Jimmy Carter with Camp David..."
Or "He could go down as Neville Chamberlain at Munich. Both are possible here."
Late April Fool?
Warren Buffett is revered all over the place, but in reality, he’s the schoolbook example of everything that’s wrong with America. That whole money before and over anything else (including people’s health and well-being) mentality. It makes people stupid, and it makes for stupid people. And sick ones, too. This Tragedy of the Commons abuse is so ingrained in the economy that it’s hard to see how it can be changed. And that does not bode well for anyone except the Warren Buffetts profiteering from it.
A change in liquidity, or the monetary surplus, can also take place in response to changes in economic activity and changes in prices. The effect of previously rising liquidity can continue to overshadow the effect of currently falling liquidity for some period of time. Hence the peak in the stock market emerges once declining liquidity starts to dominate the scene. Based on the peak in liquidity in June 2009 the level of the S&P500 of 2,061 reached so far in March this year could be not far from the top.
Americans Not In The Labor Force Soar To Record 93.2 Million As Participation Rate Drops To February 1978 LevelsSubmitted by Tyler Durden on 04/03/2015 12:32 -0400
So much for yet another "above consensus" recovery, and what's worse it is, well, about to get even worse, because while the Fed keeps baning some illusory drum that slack in the economy is almost non-existent, the reality is that in March the number of people who dropped out of the labor force rose by yet another 277K, up 2.1 million in the past year, and has reached a record 93.175 million. Indicatively, this means that the labor force participation rate dropped once more, from 62.8% to 62.7%, a level seen back in February 1978, even as the BLS reported that the entire labor force actually declined for the second consecutive month, down almost 100K in March to 156,906.
Today, every possible function of a bank, from savings to loans to money transfers, can now be done faster, cheaper, and more efficiently by new technology, courtesy of the Digital Revolution. In 10 years’ time, the technology and adoption will have progressed to the point that today’s banks will be entirely obsolete. Thomas Jefferson once wrote that “. . . power should be taken from the banks and restored to the people, to whom it properly belongs.” It took two centuries. But now it’s actually starting to happen.
In a move presaged by objections from politicians and some smaller EU financial institutions, the German lender L-Bank is suing the ECB in a bid to avoid falling under the central bank’s direct supervision. WSJ calls this "the most radical step by a European bank against ECB supervision [and] highlights the headwinds the ECB is facing from some politicians and smaller lenders in Germany, Europe’s biggest economy."
If wage growth for over 80% of America's workers is sliding even as wage growth for all American is flat, that must mean that the wage growth for the tiny 17% of America that is its bosses and supervisors must be soaring. And sure enough, it is. In fact, as the chart below shows, wage growth of "supervisory" workers has never been higher!