ECONOMY | WHAT REALLY HAPPENED

ECONOMY

Sep 17 12:56

AOC Seeks Free Rent Bill For Good

Rep. Alexandria Ocasio-Cortez, a New York Democrat, is expected to propose a bill that would extend unemployment benefits for millions.

The congresswoman declared the bill Tuesday evening during a virtual town hall event. Her announcement comes as three federal aid programs died last week that was put in place during the onset of the pandemic.

Sep 17 11:54

Crumbling Global Economic House of Cards...

Sep 17 11:53

What could an Evergrande debt default mean for China and beyond?

China Evergrande Group is deeply in the red – to the tune of $300bn. And concerns are mounting that if it defaults on its debt, it could spell disaster for China’s property market and send shock waves through the world’s second-biggest economy.

A reckoning appeared even closer on Wednesday after Bloomberg News, citing people familiar with the matter, reported that the real estate developer may not be able to make the interest payments on some of its $300bn in liabilities next week and could also miss a principal payment on at least one of its loans.

Sep 17 08:12

Seasonal Stress Sparks Sentiment Swoon

Sep 17 07:59

Money printing is worse than bad sushi!

Sep 17 07:19

Biggest wealth drop so far...

Sep 17 05:55

Everyone Has A Foot Out The Door....

Sep 17 05:47

Why Are Food Prices Going Up So Rapidly?

For a long time I have been warning that global food prices would rise dramatically, and that is precisely what we have witnessed over the past 12 months. Unfortunately, global wages are not rising nearly as quickly as global food prices are, and so this has pushed millions and millions more people into poverty and hunger. Here in the United States, nobody is currently in danger of starving to death, but many Americans have been getting a severe case of sticker shock when they go to the grocery store. Not since the Jimmy Carter era of the 1970s have we seen prices escalate like this, and people are starting to get angry.

Since the beginning of the pandemic, global food supplies have been getting tighter and tighter. When I first started writing about this, certain individuals derisively dismissed what I had to say, but now the truth is becoming apparent to everyone.

Very tight supplies and growing demand have pushed global food prices 32.9 percent higher over the past year…

Sep 16 14:52

Biden goes after top 1 percent in defending tax hikes

President Biden on Thursday went after big corporations and wealthy Americans while promoting his economic agenda that congressional Democrats are working to get across the finish line.

“Let me ask you this, where is it written in that all the tax breaks in the American tax code go to corporations and the very top? I think it’s enough, I’m tired of it,” he said in remarks at the White House on the economy.

The president reiterated his calls for big corporations and the wealthy to pay their fair share in taxes, saying it's “long overdue.”

“I’m not out to punish anyone, I’m a capitalist. If you can make a million or a billion dollars, that’s great. God bless you. All I’m asking is you pay your fair share, pay your fair share, just like middle class folks do,” he said.

Sep 16 14:44

Biden’s vax mandate could collapse trucking supply lines, leading to instant shortages of food, fuel and medicines

The Joe Biden regime continues to threaten the health, livelihood and freedom of Americans. Biden’s seditious vaccine mandates could collapse the trucking industry and threaten supply lines across the Nation. Approximately 3.5 million truckers have been traveling the nation since the beginning of the covid-19 scandal, shipping valuable food, construction, agricultural and medical supplies. Just a year ago, these men and women were lauded as “essential workers” and praised for all that they do. Today, the Biden regime is threatening to put hundreds of thousands of truckers out of work, as the federal government prepares a coercive vaccine mandate on their bodies.

Sep 16 14:09

Corporate Welfare

Sep 16 12:41

Australia takes centre stage

Sep 16 12:20

Real Estate Coming Back Down to Earth...

Sep 16 11:30

New Plan Would Push Top Tax Rate to Almost 60 Percent In These 4 States

By Brad Polumbo

Successful residents of high-tax states are in for an ugly surprise if new tax legislation passes in Congress. Democratic legislators are currently proposing a multi-trillion-dollar tax hike to raise revenue for a massive welfare and climate change spending plan. Proposed tax hikes include raising the corporate tax rate, higher taxes on cigarettes and vaping products, raising the capital gains tax rate, and higher individual income tax rates.

On the last front, the proposed income tax increase would apply to income over $400,000 for an individual and raise the rate from its current 37 percent to 39.6 percent. The proposal also includes a 3 percent surcharge on all income above $5 million. The tax hikes could push Americans in states like New York, California, New Jersey, and Hawaii up to nearly 60 percent top income tax rates...

Sep 16 11:24

Europe energy prices spike as winds pause in stormy North Sea

Winds in the stormy North Sea stopped blowing, and Europe, which already lacks natural gas, found electricity markets surging. This sudden slowdown in wind-driven electricity production in the U.K. caused a sudden switch in the direction of regional energy markets as gas and coal-fired electricity plants were called to make up for the shortfalls.

Natural gas prices hit all-time highs and thermal coal, which had been shunned for its carbon emissions, has emerged from its long price slump as utilities are forced to use it to turn on their backup power sources.

This showed the precarious state that the region’s energy markets face, heading into the long European winter. The price increase was seen mostly in the U.K., which relied on wind farms to eradicate net carbon emissions by 2050.

Sep 16 08:22

Permanent Rationing Begins

Sep 16 08:21

Minneapolis school goes remote over encampment concerns

A Minneapolis high school has switched to virtual learning and moved some classes off-site because of safety concerns after an encampment sprung up on school property this summer.

Volunteers of America High School, an alternative school of about 85 students near the intersection of East Franklin Avenue and Cedar Avenue, will continue holding virtual and off-site classes until they are “assured of the physical and emotional safety of both students and staff,” said Julie Manworren, president and CEO of Volunteers of America Minnesota and Wisconsin, in a statement to the Reformer.

“For many months, we have been reaching out to law enforcement, city, county and state officials as well as our community partners in the neighborhood, sharing information and making them aware of the needs of our students and staff,” Manworren said. “While we are frustrated by the increasing violence and lawlessness around our school building, we remain hopeful for a shared solution.”

Sep 16 07:46

Emerging Market Policy Makers Scramble To Tame Soaring Food Inflation As Unrest Looms

SocGen's market skeptic Albert Edwards pointed out last year why he started to panic about soaring food prices and how it may cause social unrest in emerging market economies. In July, Bloomberg acknowledged the same phenomenon, and now they point out politicians are searching for policies to neuter the effect of surging costs to thwart unrest.

Pandemic-driven hunger is sweeping the world as global food prices jumped 33% in August from a year ago. According to United Nations Food and Agriculture Organization data, vegetable oil, grains, and meat prices are surging. Extreme weather, record-high shipping costs, soaring fertilizer costs, labor shortages, and port congestion are also aiding in increasing prices.

Sep 16 07:12

Shocking report exposes how US defense contractors have wasted trillions through fraud and corruption

The newly released ‘Profits of War’ report from Brown University has revealed in staggering detail the full extent of the corruption unleashed by Washington’s profligate defense spending during the 20-year War on Terror.

It notes that since the start of the intervention in Afghanistan in October 2001, Pentagon spending has totalled $14 trillion, with the US war budget increasing between 2002 and 2003 by more than the entire military spending of any other country. Between one-third and one-half of that total was pocketed by defense firms, which provided logistics and reconstruction, private security services and weapons – along the way, these contractors habitually engaged in “questionable or corrupt business practices,” including fraud, abuse, price-gouging and profiteering.

Sep 16 07:07

Evergrande Suspends Trading In All Bonds

Earlier today we pointed out that in what can (obviously) only be a remarkable coincidence, China's largest, and most systematically important real estate developer, China Evergrande (and its $300+ billion in debt), collapsed on the 13th anniversary of Lehman's bankruptcy filing, when Beijing told Evergrande's creditor banks that the insolvent company, which recently hired Houlihan Lokey as bankruptcy advisor, would not pay interest on its debt next week, nor would it repay principal, in effect blessing the coming default.

And yet there was some trace of hope, because as Forte Securities trader Keith Temperton said "The Asian banks will get hit hard if there's a default, but then there will be a 10-year recovery process. The market's getting a hang of it. The way they've managed the news flow seems quite clever. They haven't let a swathe of bad news at once" giving investors and creditors some hope that the money could still miraculously reappear.

Sep 16 06:45

Armyworms Attack Midwest, Entomologists and Farmers Say Fields Wiped Out in Hours

Fields wiped out in a matter of hours. Pests marching from grasses into farm fields and pastures. It's an armyworm infestation so intense, the pest problem is unlike anything farmers and entomologists in Ohio have ever seen.

While the late-season pest showed up early in Arkansas fields, it then moved en masse into the Buckeye State. Ohio farmers battled the pest starting in August, with the pest marching fiercely through fields, causing widespread damage.

Curtis Young, an agricultural Extension educator for Van Wert County, Ohio, and entomologist by trade, says the pest had blanketed the entire state by the end of August and beginning of September.

“(Arkansas) just happened to have a huge emergence of adults when a weather front came through that sucked them up into the jet stream and deposited them here in the northern states. So, Indiana, Illinois, Ohio, etc. all got a good dose of them from a weather front,” says Young.

Sep 16 06:08

9/11 LAUNCHED THE FIRST OF THE UNACCOUNTABLE BAILOUTS BY THE FED TO WALL STREET

Most Americans believe that the unprecedented Fed bailouts of Wall Street didn’t begin until December of 2007, on the cusp of Wall Street’s financial collapse in 2008. That’s wrong. The Fed’s first massive bailout of Wall Street started on 9/11.

By the closing bell on September 10, 2001, the day before the attacks, the Nasdaq stock market was already in the midst of a full-scale implosion, having lost 66 percent of its market value and wiping out $4 trillion of wealth.

Sep 15 12:37

The Fed Speaks Loudly And Carries a Feather

Sep 15 12:30

The Rich Already Pay Too Much in Taxes

Alexandria Ocasio-Cortez donned an elegant gown with the slogan “tax the rich” painted on the back at the Met Gala in New York, where guests selected by Vogue’s Anna Wintour ponied up around $35,000 a pop for tickets. The scene was reminiscent of Tom Wolfe’s “Radical Chic” — though rather than being guests of the well-heeled in Park Avenue duplexes, today’s revolutionaries own luxury condos and drive around in government-subsidized electric cars that most Americans could never afford.

Sep 15 10:27

China's "Lehman Moment" Arrives On 13th Anniversary Of Lehman Bankruptcy: Beijing Tells Banks Evergrande Won't Pay Interest

Yesterday, when covering the non-stop drama surrounding China's most insolvent property developer, Evergrande, we said that it would be remarkably ironic if Evergrande were to announce a default - which everyone knows is coming - today, on the 13th anniversary of Lehman's bankruptcy filing on Sept 15, 2008.

Well, in this delightfully absurd world we live in, that's just what happened only instead of Evergrande making the announcement, it was the entity that will soon control the massively overlevered property developer that made it for them: the Chinese government.

According to Bloomberg, Chinese authorities told major lenders to China Evergrande Group not to expect interest payments due next week on bank loans, which takes the cash-strapped developer a step closer the nation’s largest modern-day restructurings, and guarantees that China's "Lehman Moment" is now just a matter of days, if not hours.

Sep 15 10:18

BLACKOUT: Morning News Shows Ignore Skyrocketing Meat Prices

The ABC, CBS and NBC morning news shows continued to shield President Joe Biden from bad economic news as meat prices for consumers skyrocketed across the country.

National Public Radio (NPR) said that beef prices have surged a whopping “12.2% over the last year,” based on a new Bureau of Labor Statistics inflation report. Here’s the kicker: The data show that beef is now “one of the costliest items in the surging bills that consumers face today at the grocery store.”

Food Dive reported in June of a spike in meat and poultry demand while meat processing companies were wrestling with worker shortages. The “surge in meat prices is contributing to high inflation,” NPR stated in its reporting. ABC’s Good Morning America, CBS Mornings, NBC’s Today and NBC’s 3rd Hour of Today failed to report the bad news during their Sept. 14, broadcasts.

Sep 15 07:41

Here’s Why Gold Is King of the Commodities

Sep 15 07:14

Spanish Gov't Announces Temporary Tax Cuts To Relieve Consumers After Record Power Prices

Spain's Socialist-led government announced temporary tax cuts on power prices in an attempt to drive down household electricity costs, which have surged this summer and triggered outrage among working-poor, according to FT.

Pedro Sánchez, Spain's prime minister, addressed the nation on Monday night to minimize political damage from the hyperinflationary rise in power prices. He said taxes on electricity would be significantly reduced, and energy companies would be taxed on their "extraordinary profits" and "redirected to consumers."

Sep 15 07:13

China Company Reportedly Hopes to Revive Stalled Plans to Mine Vast Afghan Copper Deposit

Afghanistan’s Mes Aynak copper deposit, one of the largest untapped high-grade projects in the world, is estimated to hold 240 million tonnes of 2.3 percent grade copper ore, according to the United States Geological Survey (USGS) - yet hurdles stand in the way of mining at the site.

China is exploring ways to begin mining copper at Mes Aynak, Afghanistan's best-known deposit located about 40 kilometers south-east of the capital, Kabul, according to Kandahar-based outlet Taand. The reserves of an estimated 240 million tonnes of 2.3 percent grade copper are believed to be worth at least $50billion.

Sep 15 07:11

Marx Got It Right: Mass Immigration Wrecks Wages. Why Won’t America’s Resurgent Communists Admit It?

Believe it or not, as Ripley used to say, Communist theoretician Karl Marx anticipated a key economic argument against mass immigration that VDARE.com has made since its beginning: Unfettered immigration depresses wages for host-nation workers. That Marx was wrong in his overall critique of capitalism, most notably his prediction that it was doomed, did not make him wrong on everything. On immigration, Marx was on the right side of the debate, if not necessarily for the right reasons. Oddly, America’s resurgent Communists don’t seem to have noticed.

Sep 15 06:05

14 Percent Inflation...

Sep 15 06:05

How to Profit From a Market Crash

Sep 15 05:49

Too Many Bears Looking For A Correction?

Sep 15 05:43

Chinese Data Dump Confirms Hard Landing Imminent

Update (2210): On the heels of data showing land sales collapsing, tonight's smorgasbord of data (absent only GDP) on consumption, industrial output and investment will reveal the extent of the damage caused by an outbreak of the delta variant.

As a reminder ahead of tonight's August data, the latest official composite purchasing manager’s index fell to the lowest since February 2020, its first contraction after the virus lockdowns, signaling China’s robust economic recovery from last year’s coronavirus trough is losing momentum.

Industrial Production YTD YoY MISSED at +13.1% vs +13.5% exp DOWN from +14.4% prior

Retail Sales YTD YoY MISSED at +18.1% vs +18.9% exp DOWN from +20.7% prior

Fixed Asset Investment YTD YoY MISSED at +8.9% vs +9.0% exp DOWN from +10.3% prior

Property Investment YTD YoY MISSED at +10.9% vs +11.3% DOWN from +12.7% prior

Surveyed Jobless Rate IN LINE at 5.1% vs 5.1% exp IN LINE with 5.1% prior

Sep 15 05:32

Chinese firms should face faster US stock delisting over audit rules, SEC chairman Gary Gensler tells lawmakers

The chairman of the Securities and Exchange Commission on Tuesday urged Chinese firms to comply with American auditing rules and said the agency supported legislation that would allow for faster delisting.

Gary Gensler, testifying before the Senate Committee on Banking, Housing and Urban Affairs, said that the agency has “had discussions directly with the Chinese authorities” about the potential speeding up of delisting and that “the clock is ticking”.

The bill – the Accelerating Holding Foreign Companies Accountable Act – would reduce the amount of time US-traded Chinese companies have to hand over their audits to US regulators to two years from three years before they can be delisted from American exchanges.

Sep 15 05:23

Fury as Biden tries to let IRS SNOOP on your bank accounts

One key prong of President Biden's plan to bankroll Democrats' $3.5 trillion budget plan is to monitor gross inflows and outflows from an individual's bank account.

The Biden administration says such surveillance would target audits and prevent tax evasion, but some are concerned that it might run up against the Fourth Amendment and those who can't afford to fight tax audits or move their money into offshore accounts.

The proposal would require banks to report to gross inflows and outflows to the IRS, including transactions from Venmo, PayPal, crypto exchanges and the like in an effort to fight tax evasion.

Sep 15 05:21

NHTSA Asks 12 Competing Automakers To Help With Its Broad Investigation Of Tesla's Autopilot

The wide-ranging NHTSA probe into Tesla's Autopilot just got a little more "wide-ranging".

That's because today it was reported that the NHTSA has asked for help from 12 major competitors other automakers in its probe of crashes involving Tesla vehicles.

General Motors, Toyota, Ford and Volkswagen were among the names contacted by the NHTSA as the regulator starts to conduct a "comparative analysis" with other "production vehicles equipped with the ability to control both steering and braking/accelerating simultaneously under some circumstances," Reuters reported Tuesday.

The NHTSA is seeking out information on any crashes in which an advanced driver system was operating "anytime during the period beginning 30 seconds immediately prior to the commencement of the crash," the report said.

Sep 15 05:16

Global Debt Hits A Record $300 Trillion, Up $36 Trillion Since COVID

Another quarter, another all time high in global debt (don't expect this to ever again drop under the existing monetary framework).

According to the Institute of International Finance (IIF), total global debt - which includes government, household and corporate and bank debt but excludes derivatives and various other exotic products - rose to a new record high of nearly $300 trillion in the second quarter, $296 trillion to be precise, and up $4.8 trillion in the quarter. This means that in the 18 months since covid, total debt has risen a stunning $36 trillion!

"If the borrowing continues at this pace, we expect global debt to exceed $300 trillion," said Emre Tiftik, IIF's director of sustainability research. Well, duh. Not only will it exceed $300 trillion but it will exceed $400 trillion, $500 trillion and eventually $1 quadrillion and so on. This is a feature, not a bug of the MMT "Helicopter Money" system we now live under.

Webmaster's Commentary: 

Sep 15 05:13

"Several Senior Executives" From Chinese Banks Investigated And Arrested In Recent Weeks, Global Times Reports

It may not just be the tech sector where the party has ended for businesses in China.

That's because this week, the state-owned mouthpiece Global Times made the announcement that "several senior executives of Chinese banks" had been "put under investigation or arrested over recent weeks".

According to the Central Commission for Discipline Inspection, the regulatory scrutiny comes as China looks to fight against corruption in the financial sector.

Sep 15 04:57

Where Did All The People Go?

Sep 15 04:51

Poverty rose in 2020 amid pandemic even as stimulus payments helped some 11.7 million Americans avoid it

The nation's poverty rate rose to 11.4% last year, but the first two rounds of federal stimulus payments helped keep 11.7 million Americans out of poverty, according to Census Bureau data released Tuesday.

The payments, a key part of the unprecedented federal response to the economic havoc wreaked by the coronavirus pandemic, prompted a decrease in an alternative poverty measure to 9.1% in 2020, the Census Bureau said.

Last year was the first time the Supplemental Poverty Measure, which began in 2009, was lower than the official rate. This measure takes into account certain non-cash government assistance, taxes and needed expenses -- addressing a major flaw in the official rate, economists say.

Without the stimulus payments, the alternative measure would have risen by about 3.6 percentage points, Census said. In 2019, the supplemental rate was 11.8%.

Sep 15 03:21

$3,586,456,000,000: Federal Tax Collections Set Record Through August

The federal government collected a record $3,586,456,000,000 in total taxes through first eleven months of fiscal 2021 (September through August), according to the Monthly Treasury Statement. -- The federal government also collected a record $1,829,589,000,000 in individual income taxes in the September-through-August period.

Sep 14 14:37

Media Attempt to Downplay Alarming New Inflation Report

By Brad Polumbo

It’s no secret that the mainstream media has a left-leaning bias. So it’s not exactly surprising that when alarming new inflation data were released on Tuesday, many journalists and media outlets attempted to downplay the story. After all, rising concerns about inflation could hamper the federal government’s ongoing efforts to massively increase government spending and expand the welfare state.

Here are just a few examples of countless reports that sought to downplay the just-released inflation figures. For one, the Washington Post dubbed the new numbers “an early sign that inflation could be easing.” And CNBC went with a different spin in its headline: “Consumer prices post smaller-than-expected increase in August.”...

Sep 14 11:13

Treasury Department Seeks to Track Financial Transactions of Personal Bank Accounts Over $600

By Peter Jacobsen

In May, the Treasury Department released the Biden administration’s revenue proposals for fiscal year 2022. One aspect of this document that has gone under-reported is the administration’s new plan for reporting requirements for financial institutions.

The document is unequivocal about the administration’s goal for financial reporting, stating, “this proposal would create a comprehensive financial account information reporting regime.”

The Biden administration’s goal here is to increase tax revenue by making sure no income avoids detection. How will the administration do this? It plans to leverage financial institutions like banks...

Sep 14 10:40

The Shortages Are Reaching A Crisis Point

Sep 14 10:15

Evergrande problems are spreading ...

Sep 14 09:58

What Will Become Of Cash-Strapped China Evergrande?

Chinese billionaire Hui Ka Yan is probably edging towards a restructuring of Evergrande’s whopping $302 billion in total liabilities, as the property developer makes little progress in averting a mounting debt crisis that has led to protests outside its headquarters.

Evergrande has hired two advisors—Houlihan Lokey and Admiralty Harbour Capital–to assess its capital structure and evaluate the company’s overall liquidity, the Hong Kong-listed firm said in a stock exchange filing today.

Zhou Chuanyi, a credit analyst at Singapore-based Lucror Analytics, said such action usually heralds a debt restructuring down the road, and investors are now closely monitoring its interest payments and looking for clues as to whether the process will begin soon.

Sep 14 09:32

“Whatever it takes”

Sep 14 07:21

Hyperinflation In Europe's Power Markets Is Disastrous For Working-Poor Ahead Of Winter

European natural gas and electricity prices are unlikely to ease in the coming months ahead of what could be a costly winter season for stressed-out consumers. The price increases for natgas and power are unusual for this time of year, raising concern prices will remain sticky and eat away wages.

Natgas prices hit a record high last month due to slowing Russian supply causing a storage crunch on the continent. Then the lack of wind-driven electricity production forced European utility companies to fire up natgas turbines to satisfy energy shortfalls. This episode underlines the precarious state of the continent's energy markets ahead of winter.

Sep 14 07:16

Google Has Been Underpaying A "Shadow Workforce" Of Contract And Temp Workers For Years, Report Reveals

Google, who hilariously is included in many "ESG" funds, underpaid "thousands" of international contract workers across several countries, a new report by the New York Times revealed on Friday.

Even better is the fact that the big tech company reportedly discovered it was violating pay-parity laws in numerous countries and then chose "not to immediately compensate the underpaid temporary staff," according to follow up reporting by Insider.

In Europe and Asia, pay-parity laws require companies to pay similar wages to full-time and temp workers who perform similar jobs. The U.S. has no such laws.

Sep 14 07:15

Aluminum Tops $3,000 For First Time Since 2008 On Supply Woes

Aluminum prices on the London Metal Exchange hit a 13-year high Monday, extending a year-long vertical ramp amid supply risks in Guinea and alumina refining woes in China and Europe.

The benchmark contract on the LME climbed nearly 1%, touching its highest level since 2008 at $3,000 per ton. Prices have jumped 50% this year and 15% in the last three weeks.

Sep 14 07:11

Counterfeit Capitalism: Why A Monopolized Economy Leads To Inflation And Shortages

I’ve lived in Washington, D.C. for fifteen years, and one of the many unacknowledged changes has been the disappearance of taxis. While the city has good public transportation, you could jump into a taxi for a reasonably priced convenient ride around commercial areas. Around 2012, Uber and Lyft came into the market, and for the next seven years, it got even better, with cheaper Uber fares within minutes. At the time, everyone knew that Uber, and its tech economy cousins, were heavily subsidized by investors, with Uber losing up to $1 million a week. But the cheap rides were too good a deal to pass up.

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