In welfare state America its virtually certain that through one artifice or another taxes will go up and the national debt burden will rise to crushing heights in order to keep the baby boomers’ entitlements funded. While Keynesians and Wall Street stock peddlers are clueless about the implications of this - it actually doesn’t take too much common sense to get the drift. Namely, under a long-term path of fewer producers, higher taxes and more public debt, the prospects for rejuvenating the previous historically average rates of real output growth are somewhere between slim and none - to say nothing of the super-normal rates implied by the markets’ current bullish enthusiasm.
Meant to extend and widen trade and related commercial relationships between the participating countries, the Trans-Pacific Partnership (TPP) has also been presented as a way for the U.S. to maintain his economic and political power in East Asia in the face of the rising influence of China in that part of the world. What should be most clear is that the Trans-Pacific Partnership is not a free trade agreement. Parts of it may, no doubt, lower some trade barriers, thus making easier the production, sale and purchase of a wider variety of imports and exports. However, TPP, like all other trade agreements in the post-World War II era is a managed trade agreement.
Having faced up to the dreadful reality of a dust-bowl-esque California, and following Governor Jerry Brown's mandatory water restrictions, The LA Times reports a growing list of 'plans' to solve the state's water shortage is growing. From innovations to insanity - from iceberg-towing to biodegradable towels and from 'water pipelines' to bumper stickers - officials have cataloged more than 170 messages containing suggestions and received untold more in emails, phone calls and public meetings.
In the coming months, however many hours Clinton spends introducing herself to voters in small-town America, she will spend hundreds more raising money in four-star hotels and multimillion-dollar homes around the nation. The question is: "Can Clinton claim to stand for 'everyday Americans,' while hauling in huge sums of cash from the very wealthiest of us?" This much cannot be disputed: Clinton's connections to the financiers and bankers of this country - and this country's campaigns - run deep. As Nomi Prins questions, who counts more to such a candidate, the person you met over that chicken burrito bowl or the Citigroup partner you met over crudités and caviar?
There's never been a better time to be a home flipper. Not only are average returns at all-time highs (you can double your money in Baltimore), you can even obtain cheap financing from Wall Street as opposed to dealing with pesky local banks. Better still, there's a very good chance you won't have to deal with annoying aspiring homeowners because according to RealtyTrac, the percentage of flipped homes sold to other "investors" is at a four-year high.
While we are sure President Obama will find a way to comment on today's jobs number (focusing on the unemployment rate we suspect and not the quality of jobs or record number of people out of work), his main topic of discussion is how wonderful the ultra-secret "Trans-Pacific Partnership" deal is for Americans... and why congress must pass it asap.
In a remarkably unbalanced and lazy article on gold this month the Economist magazine attempts to dismantle the case for investors and others to own gold. Both from an investment point of view and also from an ethical point of view. The article is so laughably one sided that it resembles propaganda rather than journalism. Therefore, we take pleasure in dissecting the article misleading sentence by misleading sentence.
Just a day after German President Joachim Gauck shocked his government by remarking in an interview that Germany should at least "consider" demands by Prime Minister Alexis Tsipras that the nation pay billions of euros in reparations for the Nazi occupation of Greece, ekathimerini reports that none other than 'helpful' Russians are willing to provide assistance in the World War II claims investigation.
Three days ago, when looking at the unprecedented, record outflows from US equities we asked a simple question: "who is buying... no really". We now have the answer.
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.
Having painted themselves into an impossible corner of junk Keynesian economics, they are now clueless about how to get out. So its time to recognize that there has been a monetary regime change. The Fed might well have been your friend since March 2009 or even for the last several decades. But stranded on the zero bound and smothered by a $22 trillion collective balance sheet, the central banks of the world are now fast becoming your fiend.
It would appear America's transformation into a "Big Brother" police state is not endorsed by every branch of the government after all.
The last time Mizuho's Chief Economist Steve Ricchiuto was on CNBC, we suspected he would never be invited back. However, today, he dared to unleash the truthiness of the US economy, debating 'facts' with none other than Deutsche Bank's meteoroconomist Joe Lavorgna... enjoy.
"If you want to hear the details of the Trans-Pacific Partnership trade deal the Obama administration is hoping to pass, you’ve got to be a member of Congress, and you’ve got to go to classified briefings and leave your staff and cellphone at the door. If you’re a member who wants to read the text, you’ve got to go to a room in the basement of the Capitol Visitor Center and be handed it one section at a time, watched over as you read, and forced to hand over any notes you make before leaving. And no matter what, you can’t discuss the details of what you’ve read."
For a long time there was confusion about the "quo" to the Saudi Arabian "quid" over its agreement to side with the US on the Iranian "nuclear deal" (which incidentally looks like it will never happen simply due to the Russian and Chinese UN vetoes). Then over the weekend we finally got the answer: the details are quite familiar to anyone who has seen the US Military-Industrial Complex in action: the US pretends to wage an aggressive diplomatic campaign of peace while behind the scenes it is just as actively selling weapons of war.