Now that the soaring dollar and plunging crude are sure to punish the Q4 2014 and Q1 2015 GDP growth rate by more than half, with estimate now sliding to the mid to low-2% area, what "benefits" to the US economy can one expect from the tax that is Obamacare? As the following chart courtesy of Goldman shows, thanks to contributions from Medicaid and Medicare and, drumroll, Exchange subsidies, the "benefits" from Obamacare will be with us, well, maybe not "us", but certainly with the way GDP is calculate for a long, long time, as the recent health spending ramp is only just getting started.
"...if Greece’s rebellion was to occur in a coherent way,...it would be only a matter of time before it was replicated in other parts of the continent." But don't think 'they' will let it happen peacefully. They'll organize huge social unrest, inject violence, and then try to use it to clamp down on the population and reinforce their grip on power. This won't remain confined to Greece.
More and more currencies are being overridden by the power of the yellow metal...
How will the US government fund a sudden additional shortfall of $281 per American per year?
The U.S. now ranks not first, not second, not third, but 12th among developed nations in terms of business startup activity as Gallup CEO Jim Clifton rages, for the first time in 35 years, American business deaths now outnumber business births. Wall Street, Clifton explains, needs the stock market to boom, even if that boom is fueled by illusion. So both tell us, "The economy is coming back." Let's get one thing clear, he exclaims, "this economy is never truly coming back unless we reverse the birth and death trends of American businesses."
In comparing pre-collapse USSR to Russia today, commentators and analysts showcase their ignorance. Recent events, such as the overthrow of the government in Ukraine, the secession of Crimea and its decision to join the Russian Federation, the subsequent military campaign against civilians in Eastern Ukraine, western sanctions against Russia, and, most recently, the attack on the ruble, have caused a certain phase transition to occur within Russian society, which, I believe, is very poorly, if at all, understood in the west. This lack of understanding puts Europe at a significant disadvantage in being able to negotiate an end to this crisis.
Here is why I think the BRICS challenge is eroding.
The surreal nature of this world as we enter 2015 feels like being trapped in a Fellini movie. The .1% party like it’s 1999, central bankers not only don’t take away the punch bowl – they spike it with 200% grain alcohol, the purveyors of propaganda in the mainstream media encourage the party to reach Caligula orgy levels, the captured political class and their government apparatchiks propagate manipulated and massaged economic data to convince the masses their standard of living isn’t really deteriorating, and the entire façade is supposedly validated by all-time highs in the stock market. It’s nothing but mass delusion perpetuated by the issuance of prodigious amounts of debt by central bankers around the globe. But now, the year of consequences may have finally arrived.
It’s high time for a new model and for new people. But the old ones, and their utterly and dramatically failed economies, hold the power, the media, the money, everything. So what other way out is there but mass fighting, mass casualties, a complete overthrow of everything that exists today, probably nuclear bombs dropping, and in the end a world none of us would recognize, let alone be able to survive in? It’ll take a while yet to get there, and it won’t be a pretty while by any stretch of the imagination. The powers that be are not done yet pretending to rule the universe and playing God. We should kick ‘em all out today, but we won’t. Because we’re all too much like them.
Fasten your seatbelts; 2015 will be a whirlwind pitting China, Russia and Iran against what I have described as the Empire of Chaos.
The nearly 50 percent plunge in the price of oil during the past six months is expected to leave oil-rich Saudi Arabia with its first budget deficit since 2011 and the largest in its history. Oil is the principal, if not the only, resource in Saudi Arabia, so it’s clear that the price of oil has a strong influence on how the country’s annual budget is drawn up. Different analyses, however, provide different answers to how Riyadh has forecast the commodity’s value. Four of these reports say the Saudi budget is predicated on oil averaging $55 to $63 per barrel in 2015.
Narrative, we have a problem. What is billed day after day as 'unequivocally good' is entirely not good for Alaska (oh and Texas and Pennsylvania and...) as with oil prices dropping, AP reports Alaska Gov. Bill Walker has halted new spending on six high-profile projects, pending further review. With oil taxes and royalties expected to represent nearly 90% of Alaska's unrestricted general fund revenue this year, officials warned, "the state's fiscal situation demands a critical look."
As Politico's Michael Grunwald writes below (we believe non-satirically), the midterm election’s discontent was illegitimate. The point is that Americans should cheer up! And whose fault is all the collective doom? Well, Bill De Blasio already explained that, as Grunwald confirms, the press has a problem reporting good news. So sit back, grab a drink (though swallow it first) and enjoy reading why "everything is awesome" in America (apart from a record 101.5 million Americans not working, record numbers on foodstamps, record numbers on disability, a record wealth divide, a record - and deadly - racial divide, record poverty, and record child homelessness).
The key is to understand why real median household incomes continue to decline and then how to correct it. It all comes back to financial policies that incentivize investors to avoid economy-boosting investments and toward financial investments that have no economic benefit. The result is a narrowing of income distribution exasperating the down spiral, while inflating wealth to the already wealthy. As long as these policies remain intact the American quality of life will continue to spiral downward while the wealth at the top continues to accelerate until one day when the top pops off and all that wealth goes abroad. And that Mr. Liesman is what we call economics.