Category Archives: Economy

Economic Issues, Taxes, Capitalism

Lynch Mob Says ‘No’ To Deutsche Bank

It is really something that Loretta Lynch, head of the US Department of Justice, has the power of life or death over the largest bank in Germany.

“Deutsche Bank CEO Returns Home Empty-Handed After Failing To Reach ‘Deal’ With DOJ”

Sad John Cryan, head of Deutsche Bank

Sad John Cryan, head of Deutsche Bank

Following the seemingly endless procession of short-squeeze-fueling trial balloons last week – from settlement rumors to German blue-chip bailouts to Qatari investors – Germany’s Bild newspaper confirms the rumors that sparked weakness on Friday: Deutsche bank CEO John Cryan has failed to reach an agreement with the US Justice Department.


And now, as Bloomberg reports, Deutsche Bank’s Chief Executive Officer John Cryan failed to reach an agreement with the U.S. Justice Department to resolve a years-long investigation into its mortgage-bond dealings during a meeting in Washington Friday, Germany’s Bild newspaper reported.


Deutsche Bank’s position is currently marginal as it is woefully undercapitalised and has no clear prospect of becoming meaningfully profitable. As the world’s largest derivative trader and Europe’s most systemically important bank this is untenable. Deutsche Bank is three times larger than Lehman Brothers, making the possibility of an unexpected and uncoordinated failure completely unacceptable.”

More at Zero Hedge

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Is George Soros One Of Them?

They are taking an awful lot of cash out of the world economy.

“Secret Swiss Military Bunkers Being Filled With Gold By Billionaires Seeking “Alternatives To Bank Deposits””


Swiss Data Safe “is independent from the banking system and any other organization or interest group,” according to a PowerPoint presentation Wipfli shows clients. The company and its anonymous rival aren’t regulated by the Swiss financial-services regulator Finma.

Nor do such companies have to report suspicious activity to Switzerland’s Money Laundering Reporting Office. In the past, submissions to the agency have led the Swiss attorney general to open investigations into corruption at FIFA, the global soccer body, and banking ties to Brazil’s Petrobras bribery scandal.

Moreover, American citizens aren’t required under FATCA to declare gold stored outside of financial institutions either. So perhaps it’s no surprise that, according to the Swiss defense department, of the roughly 1,000 former military bunkers still in existence across Switzerland, several hundred of them have been sold to private individuals who are now operating them as private storage sites for the gold stash of the world’s wealthiest of billionaires.”

From Zero Hedge

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It Worked For Hillary Clinton

“Just Spotted In Front Of The New York Fed”


… and this time they are joined by a friend: a van belonging to a professional demolition and dismantling service, which incidentally is parked right in front of the NY Fed’s master cargo door which among other places, leads to NY Fed’s gold vault.”

More at Zero Hedge

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“… The Seduction Of Easy Answers…”

While reading an article in Financial Resistance titled, “7 Signs Chicago is a Now a “Third-World” City”, I came across this gem:

“4. Declining Industry”

This is the aftermath of free trade agreements which export jobs overseas, destroy middle class jobs, and enrich corporate elites.

This is the aftermath of free trade agreements which export jobs overseas, destroy middle class jobs, and enrich corporate elites.

Chicago is one of the many “rust belt” American cities that have seen a major decline in their manufacturing industry. Just like Detroit, free trade agreements have ravaged Chicago’s industrial core, leaving thousands unemployed and destroying much of the middle class. While there are many reasons for Chicago’s economic decline, “free trade” is one of the biggest factors.”

RD Walker told in a comment to a post below of a prayer that asks for protection from easy answers. This writer is a good example of what the prayer refers to.

Obviously, the writer has taken a position against free trade. The way he presents it, though, is diabolical and wrong. Why do you think he is wrong?


Taxpayers Are Leaving Gun-Free Zones

It’s true that these places are gun-free zones. They also are the most expensive places in the country in which to live, have the highest taxes, and are least free. Unsurprisingly all have been controlled by Democrats for generations.

“New Study Finds Taxpayers Are Fleeing New York, Illinois and California”


A new demographics study, posted on, found that more tax filers are fleeing the state of New York than any other state in the country. Frankly, we’re shocked people wouldn’t want to live in a state with the highest cost of living, highest home prices, highest state income tax rate and highest property tax rate…what about the cultural benefits? We guess the bankers and hedgies have finally figured out that they can conduct their business from pretty much any location with an internet connection and then visit New York when/if necessary. Per the same study, Illinois lost the second highest number of taxpayers and California was not far behind in third.”

More at Zero Hedge

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Sounds Like You’re Doing It Wrong

But who would oppose a war on terror. Perhaps, with these statistics, we all should.

The Cloward and Piven strategy for crashing the US economy was to vastly inflate the welfare state. The fact is that it is taking more than just the welfare state to accomplish the goal. Huge expenditures on a war on terror and the sending of billions to enemies like Iran will speed up the decline.

“The US War On Terror Has Cost $5 Trillion And Increased Terrorism By 6,500%”


According to a report released by Dr. Neta Crawford, professor of political science at Brown University, spending by the United States Departments of Defense, State, Homeland Security, and Veteran Affairs since 9/11 is now close to $5 trillion USD. Before we have the chance to ask how a country that has racked up over $19.3 trillion USD in debt can spend $5 trillion USD on war, the focus of this article is to ask: What has all of this spending achieved?

As Reader Supported News reported at the end of last year, terrorism has increased 6,500 percent since 2002…”

From The Burning Platform


Ocean Shipping Is In Trouble And It’s Not Just Hanjin

This destruction is not the result of Donald Trump’s trade policies. He is not in a position to implement them yet. But, his demands that we close the trade deficit will make this worse.

“The shipping business is in crisis. The industry leader is not exempt”


Hanjin is not alone. Of the biggest 12 shipping companies that have published results for the past quarter, 11 have announced huge losses. Several weaker outfits are teetering on the edge of bankruptcy. In Japan three firms, Mitsui OSK Lines, NYK Line and Kawasaki Kisen Kaisha, look vulnerable. Activist investors are now pressing for them to merge to avoid the same fate as the South Korean line.

Even the strongest are suffering. France’s CMA CGM, the world’s third-largest carrier, announced a big first-half loss on September 2nd. Maersk Line, the industry leader, and the largest firm within A.P. Moller-Maersk, a family-controlled Danish conglomerate, will be in the red this year, having lost $107m in the six months to June. The industry could lose as much as $10 billion this year on revenues of $170 billion, reckons Drewry, a consultancy.”

Read the rest at The Economist

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US National Debt Is More Than All The Cash, Gold, Silver, And Bitcoin Combined

No surprise, really but this is a way to get your head around just how screwed the US economy is. Neither Trump, Clinton, Kaine, nor Pence will make a difference – except to make the debt continue to grow. Sanders claims he would double it. For some reason he thinks that is a good idea.


The national debt is now more than all of the world’s physical cash, gold, silver, and bitcoin combined. That is right. The U.S. national debt is that big. I’ve argued this before but the Fed is now a giant paper tiger. They are largely trying to use the power of words to move markets instead of actually raising interest rates. These rates will impact this massive debt.”

Read more at MyBudget360

Gold Switzerland has this graphic in an article titled, “The Six Presidents Causing US Bankruptcy”. Click to enlarge.



Massive Fraud At Wells Fargo Bank

Someone in management set up the rules and employees took advantage of them to fraudulently inflate sales figures and increase their bonuses.

"Stupid Is as Stupid does"

“Stupid Is as Stupid does”

“5,300 Wells Fargo employees fired over 2 million phony accounts”


Everyone hates paying bank fees. But imagine paying fees on a ghost account you didn’t even sign up for.

That’s exactly what happened to Wells Fargo customers nationwide.


The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.”

Read the rest at CNN Money

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It’s True But Just Don’t Say, “Death Panels”

Who will it be next? If they can decide that fat people and people who smoke can be sacrificed who else will they be willing to refuse health services to?

The trouble is that giving away free stuff creates extra demand of it. Instead of stopping by the apothecary and getting cough medicine for the child who has a cold,mothers are encouraged to take them to the clinic where they will get it for free. It always turns out this way.

This is from the UK Telegraph

“Obese patients and smokers banned from routine surgery in ‘most severe ever’ rationing in the NHS”

Obese people are to be routinely denied operations CREDIT: DOMINIC LIPINSKI/PA

Obese people are to be routinely denied operations CREDIT: DOMINIC LIPINSKI/PA

Obese people will be routinely refused operations across the NHS, health service bosses have warned, after one authority said it would limit procedures on an unprecedented scale.

Hospital leaders in North Yorkshire said that patients with a body mass index (BMI) of 30 or above – as well as smokers – will be barred from most surgery for up to a year amid increasingly desperate measures to plug a funding black hole.”

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What’s The Difference Between ‘Hoarding’ And ‘Saving’?

Today over at Zero Hedge there are two posts. One is titled, “When They Say “Hoarding” Instead Of “Saving” You Know You’re In Trouble” From it:

When someone uses the term ‘hoarding’ instead of ‘saving’, it means deep down they believe that others are more entitled to your money than you are.”

The other is named, “The Swiss Begin To Hoard Cash”.

swiss safe_0

I don’t know much about finance but these things don’t seem to me to be a good sign. Tyler Durden, in the first article, claims that central bankers want to move away from a cash society.

The fundamental reason why the establishment wants to abolish cash is as a necessary precursor to the imposition of negative interest rates.”

They can’t do that if you have control of your money. He also notes that people all over the world are buying safes to keep their assets.


So, Is The European Union Circling The Drain?

Britain has pulled out and now one of the prime Candidates to lead France is talking about doing so, too.

“Le Pen Praises Brexit, Promises Frexit Referendum On EU”


French National elections take place in two rounds of voting 2017. Marine le Pen is widely expected to be one of the final two candidates.

Today she praised the UK for choosing their own destiny and repeated her pledge to have a referendum on France’s membership in the EU.”

More at Zero Hedge

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Jonathan Hoenig: “Why Hillary Has My Vote”

Jonathan Hoenig at Capitalist Pig writes an argument how a free market capitalist can support Hillary over Trump:

I start with the premise that the only thing that can save the country is capitalism.

Yet sixty-three percent of Democrats and 49 percent of Republicans view Wall Street as detrimental to the economy, as reported by Daily Wire. Barely half view global free trade positively, according to Pew. The majority of young people now reject capitalism outright.

Reversing the trend will require decades of education. For Americans, capitalism remains the unknown ideal.
In this context, Donald Trump’s business credentials are exactly what makes him so dangerous. In the minds of voters, Trump represents capitalism. But as was pointed out in this space five years ago, Donald Trump is explicitly anti-capitalist on issues ranging from taxes to anti-trust to trade.

Consider that the most catastrophic financial collapse in U.S. history came under President Herbert Hoover, the Republican businessman who enacted trade restrictions to “bring back jobs.”

What followed wasn’t just economic misery, but the subsequent election of Franklin D. Roosevelt and the institutionalized welfare that hasn’t stopped metastasizing since.

In effect, what worries me most isn’t Trump, but what comes after Trump. “We tried free markets under Donald Trump,” they’ll say. “Look how it failed!”

I respect Jonathan Hoenig and his steadfast free market positions. He’s on FoxBusiness frequently and he always takes positions that align almost perfectly with Revo editorial positions on economics. And while I personally think that my arm would self-amputate before it would allow me to pull the handle for Hillary, his broad point about how Clinton really could be better for this country’s future than Trump, is not crazy talk.

Hillary is not friendly to capitalism. This must be made clear. But that’s precisely the point. She is not a capitalist figurehead. Whatever bullshit she might do in her 4-8 years, she won’t be seen as a capitalist representative, and capitalism won’t be seen to have failed as much as it is Hillary and her policies failing.

On the surface, Trump is “A Capitalist Tycoon.” He is the Monopoly Guy. He owns a show where he hires people on the basis of business acumen and talent, and brutally fires people that don’t make the cut, to the delight of the crowd. He makes no apologies for being rich from his business dealings, and in fact revels in it. He should be, by all rights, the poster boy for Capitalism. And he will be.

But make no mistake that this is all a thin veneer over Trump’s actual instincts. He is wearing Capitalism like a skin-suit.

Trump carries with him a host of positions–both current and past–that praise economic protectionism, high tariffs, economic isolationism, utilizing lawfare rather than voluntary financial persuasion, etc. And the fear is that despite his outward appearance of a capitalist, he would actually implement many non-capitalist policies that would be harmful. And when those policies bring the pain, people will look for a scapegoat.

That scapegoat will almost certainly be Capitalism (and those out there that the public views as Capitalists). This is despite the fact that the things that brought ruin weren’t capitalist policies or capitalists in the first place. But in the heat of the moment, the public won’t care about such details. They’re not going to wonk out to analyze the details. They’re going to use their reptilian brain and not much more.

Ultimately, I cannot vote for Hillary because she’s an abominable human, and I cannot place my stamp of approval upon a person I believe to be so. If only for my own conscience. But I believe it is important to see the non-crazy argument for a capitalist to support Hillary over Trump.


I Wonder Just How Strong Apple’s Support For A World Government Will Be After This

There is a face-off between Apple and the European Union over the tax deal Apple negotiated with Ireland. The EU says Ireland did not have authority to make the deal. Because of it they say Apple owes $14.5 billion, $21 billion after late fees. And they must pay it to the EU, not Ireland.

This is simply a shake-down by the socialist criminal enterprise that is known as the European Union.

In the firing line: Tim Cook, Apple's chief executive, pictured with Hillary Clinton campaign chairman John Podesta last week, has previously called the investigation 'political c**p' and has said his company will appeal against the ruling

In the firing line: Tim Cook, Apple’s chief executive, pictured with Hillary Clinton campaign chairman John Podesta last week, has previously called the investigation ‘political c**p’ and has said his company will appeal against the ruling

Apple has already threatened to cut jobs in Europe after Brussels ordered it to repay £11billion ($14.5billion) – the biggest tax bill ever imposed outside the US.
The European Commission’s three-year investigation into Apple’s sweetheart deal with Ireland has found it amounted to illegal state aid.


The US Treasury has also warned Brussels not to pursue American companies over tax avoidance – but McDonald’s, Google and Amazon could be next.
Ireland has said it doesn’t want Apple’s money even though it is equivalent to £2,400 for each of its 4.5million residents and would cover the costs of its national health service for a year.”

Read the rest at the UK Daily Mail


A Problem For Ocean Shipping

“World’s 7th Largest Container Shipper Files Bankruptcy, Assets Frozen”

hanjin ships_0

… today the largest casualty finally emerged on Wednesday when South Korea’s Hanjin Shipping, the country’s largest shipping firm and the world’s seventh-biggest container carrier, filed for court receivership after losing the support of its banks, leaving its assets frozen as ports from China to Spain denied access to its vessels.”

More at Zero Hedge


Brexit Is Not Quite Destroying Britain

The predicted job losses from the passage of Brexit were all government jobs. The bureaucracy has necessarily shrunk. The private sector is expanding.

“400,000 new jobs: the Brexit bonanza goes on against the tide of ‘Project Fear'”

brexit bonanza

One of Britain’s largest recruitment firms said the employment market has boomed since the EU referendum with an extra 30,000 new jobs on its books since the Brexit vote.

In the eight weeks following June 23, there were 400,000 new jobs posted on Reed’s website – 30,000 higher than the same period in 2015 and an increase of 8 per cent.”

Read the rest at This Is Money

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Actions Continue To Have Consequences

It’s hard to say if there is an organized boycott of Target stores or if women are just staying away because they don’t feel safe using their public restrooms.

Target announced back in April of this year that they would allow men in women’s restrooms. There was a negative backlash but Target didn’t back down. People started shopping elsewhere. They still haven’t changed their policy. Instead the geniuses on the Target board have decided to spend $20 million to convert their bathrooms to single-stall, single occupant.

“The Target boycott is costing more than anyone expected”


The company revealed its traffic declines last week when it reported second-quarter earnings.

Target’s same-store transactions, which is how traffic is measured, fell 2.2% in the second quarter. Overall, sales fell 7.2% to $16.2 billion.

“In the second quarter, our No. 1 challenge was traffic, which affected sales in all of our merchandise categories,” Target CEO Brian Cornell said last week on a call with analysts.”

More at Business Insider


Looks Like The Fed Has Decided Against A Rate Hike

“Fed Admits Another $4 Trillion In QE Will Be Needed To Offset An “Economic Shock””

Janet Yellin

Janet Yellin

In a Fed Staff working paper released over the weekend titled “Gauging the Ability of the FOMC to Respond to Future Recessions” and penned by deputy director of the division of research and statistics at the Fed, the author concludes that “simulations of the FRB/US model of a severe recession suggest that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates in most, but probably not all, circumstances.”

More at Zero Hedge


Artificial Libertarian Is Actually A Progressive

“Gary Johnson Backs CO2 ‘Fee’ To Fight Global Warming”


DailyCaller: Libertarian Party presidential nominee and former New Mexico Gov. Gary Johnson said he’s no skeptic of man-made global warming and endorsed a “fee” on carbon dioxide emissions.

It’s all part of his “free market” approach to global warming, Johnson told the Juneau Empire in an article published Sunday.

“I do believe that climate change is occurring,” Johnson said. “I do believe that it is man-caused” and “that there can be and is a free-market approach to climate change.”

Johnson’s “free market” approach to global warming includes “a fee — not a tax, he said — placed on carbon” to make those who emit the greenhouse gas pay the supposed cost of their actions, according to the Juneau Empire.”

More at iOTW


“What Will You Do When The Lights Go Out?”

“The Inevitable Failure Of The US Grid”

When you look at the layout of the grid above, it’s easy to see that a single grid going offline would disrupt a huge segment of North America.

When you look at the layout of the grid above, it’s easy to see that a single grid going offline would disrupt a huge segment of North America.

“And if you’re wondering why Texas gets a grid of its own, according to the Texas Tribune they have their own grid “to avoid dealing with the feds.” Now that’s true survivalist savvy—in theory.”

What we are certain of, is that severe weather will continue to stress and threaten our power grid. And unless something changes, ultimately, it will fail. So when we talk about reliability, we’re talking about “when” and “for how long” scenarios, not “what if”.

The how-long factor plays a huge role into how bad is “bad”; not because of the events that one knows will follow, which includes mass food spoilage, deaths due to overheating in the hot summer months, deaths due to freezing in the cold regions, and the halting of everything we take for granted these days—airlines, internet and most other forms of communication.

All that sounds pretty bleak, but when you throw into the mix the mania and hysteria that would ensue shortly after such catastrophic events, it will be so much worse.”

Read the rest at Zero Hedge

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Kate Gets Results

This simple chart was compiled by reader Robert and published on Kate’s blog, Small Dead Animals. You can follow the links and try for yourself but you will find the same results Robert found. It is very interesting just how easy it was for him to construct the list but even more interesting is why it wasn’t done before by someone else.

I discovered it and found it to be powerful and decided it needed to be shared. What do you think?

“American States: Economic Competitiveness vs. Political Leanings”

Yesterday a Democrat friend posted on Facebook about “how obvious” it was that liberal (ie. Democrat) run states were much more prosperous than conservative ones. I was curious about this statement so decided to check the facts. Using this link and this one, I compiled a table of the 10 most and 10 least economically competitive states:”


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One Less Health Insurer – Aetna Backs Out

None of the companies providing health care insurance can afford to do it any longer. The rules in the Affordable Care Act, combined with the other actions of the US federal government prevent it. They all want double digit premium increases but cannot get them. As a result they are dropping out of covering health care. It’s all part of the plan to convert the country to Government funded single-payer health care. If health care insurance is not available there is just that one other option.

“Aetna latest insurer to question Obamacare’s future”


Aetna (AET) said Tuesday it is canceling plans to expand into five more states next year and will reassess its involvement in the 15 states where it currently offers coverage on the individual exchanges. Aetna — which expects to lose $300 million (pre-tax) on its Obamacare business this year — must conclude its review by the end of September and notify states where it intends to withdraw.

“…in light of updated 2016 projections for our individual products and the significant structural challenges facing the public exchanges, we intend to withdraw all of our 2017 public exchange expansion plans, and are undertaking a complete evaluation of future participation in our current 15-state footprint,” said CEO Mark Bertolini in a second-quarter earnings statement.”

More at CNN Money


$400 Million To Iran? Meh.

This has been going on for some time.


LEAD Obama

According to Egypt’s TV14 network, Obama had secretly transferred eight billion dollars to the Muslim Brotherhood, not the Egyptian Government, as payment to guarantee that a large portion of the Sinai Peninsula would be turned over to the terrorist organisation Hamas, an enemy of both the United States and Israel.”

The rest of the story is here


Denninger: “America Died At 11:00 ET 7/5/2016”

From Karl Denninger at Market Ticker

Here is the section of US law that Comey admitted and stated that the FBI found Hillary violated:

(f) Whoever, being entrusted with or having lawful possession or control of any document, writing, code book, signal book, sketch, photograph, photographic negative, blueprint, plan, map, model, instrument, appliance, note, or information, relating to the national defense, (1) through gross negligence permits the same to be removed from its proper place of custody or delivered to anyone in violation of his trust, or to be lost, stolen, abstracted, or destroyed, or (2) having knowledge that the same has been illegally removed from its proper place of custody or delivered to anyone in violation of its trust, or lost, or stolen, abstracted, or destroyed, and fails to make prompt report of such loss, theft, abstraction, or destruction to his superior officer—

Shall be fined under this title or imprisoned not more than ten years, or both.”


(g) If two or more persons conspire to violate any of the foregoing provisions of this section, and one or more of such persons do any act to effect the object of the conspiracy, each of the parties to such conspiracy shall be subject to the punishment provided for the offense which is the object of such conspiracy.”

Which in turn implicates Bill Clinton, Chelsea Clinton and every one of the people who worked on said server or in Hillary’s entourage and knew what Hillary was doing.


America, as envisioned and fought for by the founders, died today at 11:00 AM ET, 7/5/2016.

240 years and one day from birth to death.”


I Guess I’d Shut Down And Lock The Doors

Just another way to drive job-creating businesses out.

Los Angeles seems to be competing with San Francisco for moonbattiness.

“LA City Hall panel backs fining companies for asking applicants about past crimes”

app for employment

Businesses that ask a job applicant about his or her criminal history during the hiring process could be fined and forced to pay the applicant up to $500 under a new law being considered by city leaders.

A Los Angeles City Council committee backed a plan Tuesday to penalize businesses that weed out applicants based on criminal convictions.

The rules are part of a law under consideration by the council aimed at giving former convicts a better shot at obtaining employment.

The Ban the Box ordinance, approved in concept last year by the council, bans private employers with 10 or more workers from asking questions related to an applicant’s criminal history before a conditional offer of employment has been made.”

More at the LA Daily News

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