Sunday, November 17, 2019

Keiser Report: Last of the Fiat Notes (E1413)

from RT:

In the second half, Max talks to Chris Martenson of PeakProsperity.com about the choice between ‘greatness and oblivion’ in our environmental and economic policies going forward. They also discuss whether or not the U.S. can go negative on their sovereign debt yields and still retain its reserve currency status.

How The Trade War Is Going To Affect You And Your Family

by Michael Snyder, The Economic Collapse Blog:

As expected, trade negotiations with China concluded on Friday with no trade deal in sight.  Treasury Secretary Steven Mnuchin called the negotiations “constructive”, and that helped calm the financial markets, but there really isn’t any reason to be optimistic at this point.  The negotiations that happened this week did not even come close to producing a deal, and neither side is attempting to claim that there will be an agreement in the near future.  Instead, it appears that moves are being made that could lead to a protracted trade war.  In fact, according to Bloombergthe Trump administration has just given the Chinese another ominous deadline…

Buybacks And Lies

by Karl Denninger, Market Ticker:

The lie factory in the media continues with regard to the economy and markets — and it’s you who take it up the chute.

Lawmakers on both sides of the aisle have recently criticized stock buybacks, including Sen. Chuck Schumer, D-N.Y., and Sen. Bernie Sanders, I-Vt., in a New York Times op-ed and Sen. Marco Rubio, R-Fla., in a tweet storm about his plans to release legislation on the subject. As the Tampa Bay Times notes, this is something “you might expect from Bernie Sanders or Elizabeth Warren, but not necessarily the Florida Republican.”

These objections to stock buybacks are, in a word, misguided. Critics’ complaints rest on the premise that they maximize shareholder earnings to the detriment of workers and at the expense of investments in the company. But this reflects a fundamental misunderstanding of how stock buybacks work and what drives business leaders’ decisions about spending profits and deploying capital.

THE MIDDLE CLASS IS GETTING DESTROYED!

by Mac Slavo, SHTF Plan:

Youtuber Jeremiah Babe tells it like it is, and doesn’t mince his words.  The middle class is getting eviscerated and it’ll be so much worse once the economy comes crashing down again.

In his recent video, Babe says far too many Americans are staring the boogeyman in the face and yet they still ignore the “dangers that are coming with this [economic] collapse.” He added: “I’m absolutely dumbfounded by the lack of common sense here in America in regards to what is happening to this economy.”

The End Of The Bull Market, In Three Charts

by John Rubino, Dollar Collapse:

Stocks have completely recovered from their flash bear market of late 2018.

But now they face a hard question: Can already record high prices continue to rise in the face of falling corporate profits?

Let’s start with the “falling corporate profits” part:

A business generates improving profits when the things it sells rise in price faster than the cost of production. So on the following chart you want labor costs to be flat or falling, and the other line – a measure of inflation – to be rising. But lately the opposite is true.

WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND

by Harvey Organ, Harvey Organ Blog:

In silver, the total OPEN INTEREST FELL BY A CONSIDERABLE SIZED 5358 CONTRACTS FROM 219,704 DOWN TO 214,346 DESPITE YESTERDAY’S 8 CENT LOSS IN SILVER PRICING AT THE COMEX. TODAY WE ARRIVED FURTHER FROM AUGUST’S 2018 RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS. WE ALWAYS WITNESS A CONTRACTION IN TOTAL OI AS WE APPROACH FIRST DAY NOTICE AND IT SEEMS THE CULPRIT IS THE FORCED LIQUIDATION OF SPREADERS.

American Consumers Propping Up Economy With Money They Don’t Have

by Peter Schiff, Schiff Gold:

Consumer debt is driving American economic growth.

Total outstanding consumer debt surged over $4.1 trillion in the second quarter of 2019, according to the latest data released by the Federal Reserve.

American indebtedness grew by 4.9 over the year, and the quarterly gain from Q1 to Q2 came in at $60 billion — the biggest second-quarter increase since Q2 2016.  Over the last 12 months, American consumers have piled on an additional $208 billion of debt.

The consumer debt figures include credit card debt, student loans and auto loans, but do not factor in mortgage debt.

Denmark’s 3rd Largest Bank Is Now Paying People To Take Out A Mortgage

from ZeroHedge:

Back in 2016, when the first negative interest rate bonds first emerged, we offered readersa glimpse of the NIRP future:

After an intense pow-wow between the administration, Congressional leaders and the Federal Reserve, the Negative Mortgage Rate Program (NMRP) is born. The program is simple.  Homeowners will be paid to borrow.  The Federal Reserve declares that the NMRP is a brilliant extension of NIRP (negative interest rate policy), because it will benefit everyone, not just the 1%ers.

Here’s how it works: No downpayment needed.  100% financing.