from Gerald Celente:
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…
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.
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.”
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.
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.