White House

Just when you think that the depravity of the United States cannot possibly get any worse, something else comes along to surprise us.

Richard Nixon made hay of the term “Silent majority” back in November 1969 to defend his Vietnam War policy.  It has since been used by American politicians to legitimize and expand the nature of a non-descript huge following they claim as their own, quite often asserting the existence of magnified populism and an implied democracy.  Nixon’s baton seems to have been now passed to Donald Trump, as he submits his candidacy for the highest political office in the land, and grabs the microphone to broadcast his unfiltered stand on immigration.  A message that questionably-qualified experts in the media are quick to devour, then defecate, on a public more receptive to shallow issues dealing with celebrities than anything of social significance or depth. 

When we discuss an "economic collapse," most people think of a collapse of the financial markets; and without a doubt, one is coming very shortly. But let us not neglect the long-term economic collapse that is already happening all around us. If you stand back and take a broader view of things, what has been happening to the U.S. economy truly is quite shocking. The following are 12 ways that the U.S. economy is already in worse shape than it was during the depths of the last recession...

• Stocks sour as Apple results leave bitter aftertaste (Reuters)
• Awkward Alliance Running Germany Exposed by Greek Crisis (BBG)
• Apple Faces Old Question of What’s Next After Record Profit (BBG)
• Lawmakers, White House Explore Tax Revamp for U.S. Firms Overseas (WSJ)
• Digital Misfits Link JPMorgan Hack to Pump-and-Dump Fraud (BBG)
• More Debt Traders at Risk as European Banks Report Results (BBG)
• Iran rejects sanctions extension beyond 10 years (Reuters)

The latest confirmation that the Trump "nightmare" is causing not only sleepless nights but also panic attacks for a GOP that is scrambling to respond to the Donald's juggernaut is not only open attempts at caricature, which however merely feed Trump's ego and push him to troll his accusers even more, but to use the influential Des Moines Register, Iowa's largest newspaper and a critical voice when it comes to endorsing, or panning, presidential candidates in this first caucus state, to call on Donald Trump to drop out of the 2016 presidential race.

"I held in my hand the Holy Grail for the Chicago Mercantile Exchange. The most influential economic mind of the twentieth century provided the CME with the intellectual foundation upon which to build its financial superstructure."

If the Fed is concerned that a rate hike cycle might exacerbate the supposed drag on the economy exerted by the strengthening dollar and that tightening when the rest of the world is immersed in competitive devaluation could create FX headwinds for US exports, then why not nominate a currency strategist to the Fed board to weigh in on the subject? Well, as it turns out, that’s precisely what the Obama administration did on Monday.

• Back Greek talks or face chaos, Merkel tells German lawmakers (Reuters)
• Fear of the Unknown Binds a Greek Deal With Few Believers (WSJ)
• Grexit Still on the Table Even With EU’s Latest Band-Aid (BBG)
• Donald Tusk warns of extremist political contagion (FT)
• Germany, Not Greece, Should Exit the Euro (BBG)
• Sabine Files Bankruptcy in New York as Oil Prices Fall (BBG)
• Markets Bow to Central Bankers as Bonds Rise, Pound Strengthens (BBG)

"The AIIB may come to play an important role in keeping America honest. It is difficult to say at this point whether the AIIB will have a negative or a positive impact on the global economy. At the very least, however, the emergence of an international institution with a viewpoint different from that of western creditors will help enhance the quality of debate over emerging economies’ debt problems."

Despite President Obama's hubris over the 'recovery', his crowing about the jobs record, and his insistence that while "there's more to be done," everything is awesome, The White House just took the meat-cleaver to its US economic growth forecasts...cutting 2015 growth from 3% to 2%. That was not all though as their forecasts see no recession until at least 2025, unemployment under 5.0% for at least the next decade, stable inflation for 10 years, and last but not least - a 3-month T-Bill rate of over 3% within the next few years.

It is only fitting that almost exactly 24 hours after the Greek "pre-deal", which may and will end up crashing and burning in very short notice, another long expected "deal", one which has been about a decade in the making, was reached, when Iran reached a landmark nuclear agreement with the U.S. and five other world powers, a long-sought foreign policy goal of the Obama administration. However, just like with the Greek deal celebrations, these too will likely be short lived as the outcome sets the White House on course for months of political strife with dissenters in Congress and in allied Middle Eastern nations.

Trump has been playing the media with his supposed presidential ambitions for years, but it was clear then that it was just The Donald doing what he does best – promoting himself. And so the question jumps out at us: Why now? Although we have no concrete proof of the theory, there’s plenty of circumstantial evidence. His ties to the Clintons, his past pronouncements which are in such blatant contradiction to his current fulminations, and the cries of joy from the Clintonian gallery and the media (or do I repeat myself) all point to a single conclusion: the Trump campaign is a Democratic wrecking operation aimed straight at the GOP’s base. Donald Trump is a false-flag candidate.

Businesses usually begin as productive enterprises. But almost all have zombie tendencies. Once they reach a certain size, they recognize that the best investment they can make is in politics. They hire lobbyists. They pay crony politicians. In return, government enacts rules and regulations to stifle competition. But as with so many of its activities, government succeeds when it fails. As a new industry arises, the money still flows from the cronies, while the feds get a piece of action from the new enterprises, too. And households? They grouse and groan. But the masses usually love government. They think business people are greedy SOBs. But they often hold the fellows who run the government racket in the same exalted category as saints, TV stars, and sports heroes. Don’t believe it?

• Only update software on down days: NYSE, SEC Suspect Software Update Triggered Trading Halt (BBG)
• Trade halts add to China’s Potemkin market problem (Reuters)
• Why Beijing’s Efforts Have Failed to Tame China’s Stock Market (WSJ)
• Irrational Exuberance Triggers Chaos as China Watchdog Sidelined (BBG)
• China bounce ends five-day losing streak for stocks (Reuters)
• Fear Grows in Greece as Decisive Hour Nears (WSJ)
• Once Swarming with Greek Visitors, a Bulgarian Town Reels as Business Languishes (WSJ)
• Greece Shuts Markets Through July 13 as Officials Debate Bailout (BBG)
• Germany calls for European defence sector consolidation (Reuters)