Category Archives: Economy

Economic Issues, Taxes, Capitalism

I Wonder. Is This Happening In The U.S.? How Would We Know?

Where would the money go? Who is buying?

canada gold sales

From Kate

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How Has The Increased Minimum Wage Affected Jobs Market?

Investor’s Business Daily has been looking into it. This action/reaction phenomenon is really a no-brainer. Thinking people understand that every action has an equal and opposite reaction. Non-thinking people don’t care. They just want MORE.

“Minimum Wages Surged In 6 Cities Last Year; Then This Happened”

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Hiring at restaurants, hotels and other leisure and hospitality sector venues slowed markedly last year in metro areas that saw big minimum-wage hikes, new Labor Department data show.

Wherever cities implemented big minimum-wage hikes to $10 an hour or more last year, the latest data through December show that job creation downshifted to the slowest pace in at least five years.”

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More Brilliance From The Oval

Every time President Obama proposes something this stupid, this unlikely to be passed by a GOP held Congress, it makes me wonder what his other hand is doing.

“Obama to propose $10-a-barrel oil tax”

obama oil  pump

President Barack Obama is about to unveil an ambitious plan for a “21st century clean transportation system.” And he hopes to fund it with a tax on oil.

Obama aides told POLITICO that when he releases his final budget request next week, the president will propose more than $300 billion worth of investments over the next decade in mass transit, high-speed rail, self-driving cars, and other transportation approaches designed to reduce carbon emissions and congestion. To pay for it all, Obama will call for a $10 “fee” on every barrel of oil, a surcharge that would be paid by oil companies but would presumably be passed along to consumers.”

Tax-and-spend. That’s all this proposal is. Spend more so you can burden the people with more taxes. Do anything you can to focus more control in the hands of the federal government. Even the Politico writer understands that this will go nowhere:

There is no real chance that the Republican-controlled Congress will embrace Obama’s grand vision of climate-friendly mobility in an election year—especially after passing a long-stalled bipartisan highway bill just last year—and his aides acknowledge it’s mostly an effort to jump-start a conversation about the future of transportation. But by raising the specter of new taxes on fossil fuels, it could create a political quandary for Democrats. The fee could add as much as 25 cents a gallon to the cost of gasoline, and even with petroleum prices at historic lows, the proposal could be particularly awkward for Hillary Clinton, who has embraced most of Obama’s policies but has also vowed to oppose any tax hikes on families earning less than $250,000 a year.”

From Politico

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Eco-Lunacy: The Insanely High (and Unachievable) Burden of Proof on the AGW Crowd
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Norris_AGW

Every time I consider the global warming/climate change issue, I always come back to the conclusion that the left is hell bent on a principle that is wholly and patently false on its face. It’s not to “save the earth.” It’s simply to entrench a system of control over individuals, and wealth redistribution on a global scale. There can be no other answer, because the alternative is that they are too stupid to not see the insurmountable hurdles they need to clear.

To follow, a step-by-step list of hypotheses that must be scientifically proven in order to legitimize drastic climate control measures:
More below the fold…

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RBS: “‘Sell everything,’ global banking giant tells investors and brace for ‘cataclysmic year’”

Markets are flashing the same stress alerts as they did before the Lehman crisis in 2008, warns RBS, predicting global stocks could fall by a fifth and oil bottom at $16.

Markets are flashing the same stress alerts as they did before the Lehman crisis in 2008, warns RBS, predicting global stocks could fall by a fifth and oil bottom at $16.

Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” it said in a client note.”

Read the rest at the Financial Post

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“JPMorgan, BofA, Citigroup Among Eight U.S. Banks Cut by S&P”

This is from Bloomberg Business.

“Move is prompted by Fed rule aimed at avoiding future bailouts”

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johngaltfla.com

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. are among eight large U.S. banks that had their credit grades cut by one level by Standard & Poor’s on the prospect that the U.S. government is less likely to provide aid in a crisis.

After signaling the move last month, S&P lowered its long-term issuer credit, senior unsecured, and non-deferrable subordinated debt ratings, according to a statement Wednesday. Firms affected also include Wells Fargo & Co., Goldman Sachs Group Inc., Morgan Stanley, Bank of New York Mellon Corp. and State Street Corp.”

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Some People Are Probably Surprised By This

“Seattle lost 700 restaurant jobs from January to September of this year”

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The $15 minimum wage increase in the Seattle area “is getting off to a pretty bad start,” according to a new report.

Data shows that the Seattle Metropolitan Statistical Area (MSA) lost 700 restaurant jobs from January to September of this year, and a report from the American Enterprise Institute suggests that this could be the product of adverse effects of minimum wage hikes on restaurant jobs.

“What is also noteworthy about the loss of Seattle restaurant jobs this year is the fact that restaurant employment in the rest of Washington state is booming this year,” writes Mark Perry, an AEI scholar and professor of economics and finance at the University of Michigan’s Flint campus.

A report by Perry, published Wednesday on AEI’s public policy blog Carpe Diem, notes that there has been an increase of 5,800 new restaurant job positions in the rest of the state of Washington.”

From the American Enterprise Institute via The Daily Signal

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“… Sound Money, Ideally Tied To Gold.”

Senator Cruz is not a fan of the Federal Reserve – at least as it is constituted today. The points he makes in this short clip are excellent.

It is said of Cruz that he has a memory for things that have been told to him. He can remember them word-for-word and explain who said them and the context. His ability to compile these memories into brief comments is legendary and he will defend them with facts. If there are twelve opinions expressed by experts he can sum them all up into one statement and remind listeners of why he said it by reiterating all twelve points verbatim. It’s because of this unique and rare ability that he is such a great debater. No one can top his skills.

The CNBC ‘Moderators’ learned that lesson, as did the other candidates on that stage.

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The ‘Q’ Word. This Is The First I Have Seen It

“$1.5 Quadrillion Derivatives Bomb And The Great Financial Disaster”

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Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that the world’s $1.5 quadrillion of derivatives will lead to the Great Financial Disaster.”

Read it at King World News

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“The Fed Just “Discovered” Another $2.7 TRILLION In Debt”

No way to pay that off.

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Officially, the U.S. was already $59 trillion in debt in 2015, but now the number is significantly higher.

When the Fed is changed its method of tracking and reporting debt numbers, and replaced a single Credit Market Instruments chart with two separate charts for “debt securities” and “loans,” it suddenly reported an additional $2.7 trillion.

That’s quite an accounting error! Zero Hedge reports:

total credit market debt_0

Read it here

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Something Is Going On At The National Borders

“Crossing Borders with Gold and Silver Coins – a Glimpse of Things to Come”

Nice.

Nice.

Here is a story from a man who regularly travels between countries. He claims to have just a few silver coins in his brief case and has been hassled many times as he entered a new country.

I’ve gradually accumulated about a dozen one-ounce silver rounds in my briefcase, some souvenirs issued by mining companies, plus others from Canada, Australia, China, and the US. But when I left Chile a couple of months ago, the person monitoring the X-ray machine stopped me and insisted I take them out and show them to her. This had never happened before, but I wrote it off to chance. Then, when I was leaving Argentina a few weeks later, the same thing happened. What was really unusual was that the inspector looked at them, took them back to his supervisor, and then asked if I had any gold coins. I didn’t, he smiled, and I went on.”

So they’re looking for people who transport gold. Maybe they just want to confiscate it for the enrichment of the official. But this story sounds like it’s going on just about everywhere. So far silver doesn’t seem to be a problem.

I wonder if you are transporting US silver eagles. They are minted by the US Mint and bear a $1 stamp. Each one has about $16 worth of silver in it. Could you pass it off as only being worth a dollar?

Silly me.

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Happy Labor Day From $15/Hour Cities

No more, “May I take your order?” The jobless rate just jumped again.

SleepJobless in Seattle.

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While it seems liberals may think that raising the minimum wage will raise living standards for poor Americans, they should have seen this coming.

With Los Angeles joining Seattle in setting a $15 minimum wage (Los Angeles by 2020, and Seattle by 2021), it stands to reason that McDonald’s would find a way around simply paying workers more, as Vox pointed out the obvious fact that “the reality is that McDonald’s just wants to make money.”

Read more at BizPacReview

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The Automat Goes 21st Century In San Francisco

Not many of us are old enough to remember Horn & Hardart’s Automats. Below is a reminiscent video. You could go in there and insert a coin, open a window, and get something to eat. No cashier, no waiters. It was all self-serve and people loved it.

Now we are seeing a similar concept in San Francisco as a result of the city’s demand for a $15 per hour minimum wage. This time the system is upgraded with computers and electronic payment so you don’t need coins. It’ll undoubtedly catch on.


The people in the video seem thrilled with the new invention. I guess you have to be a thinking person to see the irony – and the lack of jobs.

Hat tip to Tammy Bruce

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How Wrong Was John Maynard Keynes?

Keynes in 1933

Keynes in 1933

Keynes was a British economist.

In 1999, Time magazine included Keynes in their list of the 100 most important and influential people of the 20th century, commenting that: “His radical idea that governments should spend money they don’t have may have saved capitalism.”

Heh.

This morning I came across, “Quotes of the Morning: Before & after the 1929 crash” at Not PC.com. The very first quote comes from Keynes, dated two years before the 1929 crash:

1. “We will not have any more crashes in our time.”
– John Maynard Keynes, leading British economist, in 1927″

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So what’s wrong with surge pricing?

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Let me just start by pointing out that progressives aren’t. Today’s progressive hate progress and nowhere is that more evident than their hate of Uber.

Uber is a ride sharing business in which you use an app on your phone to summon a driver in a private car to pick you up and take you to your destination. No cash changes hands as the app charges your credit card. You know the fare up front. You also know immediately that when you driver will arrive. The best part, of course, is that you don’t have to take a nasty taxi.

Progressives hate it primarily since, unlike the taxicab industry, there are insufficient opportunities for union and political graft. Union payola for the local alderman, after all, makes the progressive world go round.

There is a list of about a dozen reasons why progressives hate the progress that is Uber but I want to focus on surge pricing.

Have you ever tried to catch a cab at closing time on Halloween or St. Patrick ’s Day in the rain? Yeah, it ain’t gonna happen. Not true with Uber. If you want a ride, you will get one. You will, however, pay extra during times of high demand.

Surge pricing is supply and demand pricing. When demand surges and prices cannot be increased, there will necessarily be more buyers than willing sellers. This is the case with the taxicab industry and it explains why you are walking home drunk dressed as Boba Fett before dawn on November 1.

If, on the other hand, prices can move to reflect increases in demand, there will be more willing sellers and fewer willing buyers. You will have no problem getting a ride. You will just have to pay extra.

Progressives despise supply and demand like poison. They hate that people willing to pay more will get services. They prefer the poverty of shortages. Progressives want both those willing to pay and those not willing to pay to just do without.

Progressives call demand pricing “gouging”. Economically literate people call it the “iron clad laws of economics”. Economically literate people are correct. During periods of high demand you will pay one way or the other. With Uber, you will pay extra dollars. With taxicabs, you will pay extra by hoofing it home in the dark rain. Either way, you will pay.

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Everyone – Send This To Al Gore – And The Congress…

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From here

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WSJ: “China Moves to Devalue Yuan”

This doesn’t sound good.

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“Shockwaves from China’s yuan devaluation will be felt by all kinds of investors, and will likely prompt questions from U.S. politicians.”

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BEIJING—China’s central bank devalued its tightly controlled currency, causing its biggest one-day loss in two decades, as the world’s second-largest economy continues to sputter.

Chinese authorities said the change would help drive the currency toward more market-driven movements. The move also signaled the government’s growing worry about slow growth. A shift toward a weaker currency could help flagging exports at a time when many other efforts to boost the economy haven’t proven very effective.”

From the Wall Street Journal

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Bloomberg: “Another Major Pillar of the Bull Market Is Collapsing”

I don’t understand it but it doesn’t look good.

media co drop

A bull market without Apple Inc. is one thing. Removing cable television and movie stocks from the 6 1/2-year rally in U.S. equities is a little harder to imagine.
Ignited by a plunge in Walt Disney Co., shares tracked by the 15-company S&P 500 Media Index have tumbled 8.2 percent in two days, the biggest slump for the group since 2008. The drop erased all of 2015’s gains for a group that has posted annualized returns of more than 33 percent since 2009.”

More at Bloomberg Business

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Politico: “Price tag for Syrian rebels: $4 million each”

This is stupid. President Obama is so determined to keep Americans out of the fight against the Islamic State that he is doing ridiculous things. In the grand tradition of leftists and other retarded people he is throwing money at the problem. Even the leftist Politico has noticed the stupidity of this move.

We are sending money and arms to Syrians to try to encourage the rebels to fight against IS. We have tried that over and over again in places like Iraq. It has always failed in a spectacular fashion but we are still doing it.

“The definition of insanity is doing the same thing over and over and expecting different results.”

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How much has the United States spent to train that whopping force of 60 Syrian rebels to take on the Islamic State? Well, according to basic math, about $4 million for each of them.

POLITICO has learned that of the $500 million requested last year for the “train-and-equip” program, roughly half has been spent.

“About half of the $500 million has been obligated thus far, mostly on equipment required to train the Syrian fighters,” said a congressional aide who was not authorized to speak publicly.

The fact that the Obama administration has spent so much on a program that has yielded so few vetted fighters makes clear just how difficult it is to find “moderate” Syrian rebels who can make it through the stringent screening process — and are willing to prioritize the fight against ISIL over the civil war against Syrian President Bashar Assad.”

From Politico

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David Stockman: “First Was A Head Fake—–Next Comes Einen Shitschturm”

David Stockman

David Stockman

From Wikipedia:

David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.”

Stockman has a website he calls Contra Corner. Here is a little about what he has to say about Greece and the European Union:

If you don’t believe financial markets are well and truly broken Monday’s tepid response to the Greferendum should be dispositive.

The house of cards known as the Eurozone is about to hit the wall, unleashing financial contagion and turmoil far and wide. So any investor or trader in their right mind should have been slamming Jim Cramer’s triple sell button early and often.

For lack of doubt, consider what Merkel’s Vice-Chancellor and leader of the German socialists had to say on Monday. Recall Herr Gabriel is purportedly the voice of the enlightened left and the politician hoping to soon relieve Angela Merkel of her job:

Sigmar Gabriel, the German vice-chancellor and economy minister, said there could be no question of writing off Greek debt because other countries that have had loans such as Ireland, Portugal and Spain would demand equal treatment.”

Might want to read what he has to say.

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Trading Halted At NYSE

“Glitch halts trading on NYSE; other exchanges unaffected”

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, July 8, 2015. Hong Kong's main stock index plummeted as much as 8.5 percent on Wednesday as a sell-off in mainland Chinese shares accelerated despite new measures to support the market; U.S. stocks were poised to open lower. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, July 8, 2015. Hong Kong’s main stock index plummeted as much as 8.5 percent on Wednesday as a sell-off in mainland Chinese shares accelerated despite new measures to support the market; U.S. stocks were poised to open lower. (AP Photo/Seth Wenig)

NEW YORK (AP) — The New York Stock Exchange stopped trading in the late morning Wednesday because of a technical issue, though shares continued to trade on other exchanges. U.S. indexes sank amid growing concerns that trouble in China’s markets could spread.”

From the same article:

The unofficial start to the second-quarter earnings season starts Wednesday when Alcoa turns in its results after the closing bell. Analysts forecast that companies in the S&P 500 will report that their overall earnings dropped 4 percent in the quarter, according to S&P Capital IQ, as a rising dollar and falling oil prices pinched profits.

GLITCH: United Airlines temporarily grounded all its flights in the U.S. because of a problem with its computer system. It’s the second time in two months that the Chicago carrier has been hit by technical troubles. Shares in United Continental Holdings, the parent company, fell 84 cents, or 2 percent, to $53.45.

CHINA: The Shanghai Composite sank 6 percent Wednesday, despite new attempts by China’s government to stop the selling.

GREECE: Hopes for a resolution to Greece’s crisis rose after the country applied for a new three-year loan and said it would have a new proposal for creditors in coming days.”

There’s more here including info on crude oil, bonds, and currencies. All told it doesn’t paint a very positive picture.

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While We Were Worrying About What Donald Trump Said…

… The Chinese stock market has been tanking. If you think Greece is a problem look at this.

A stock investor looks up in a brokerage house in Shanghai. Chinese authorities have launched frantic efforts to shore up plunging stock prices following another 5.7 per cent decline in the country's main market index on Friday. Source: AP

A stock investor looks up in a brokerage house in Shanghai. Chinese authorities have launched frantic efforts to shore up plunging stock prices following another 5.7 per cent decline in the country’s main market index on Friday. Source: AP

WHILE the world worries about Greece, there’s an even bigger problem closer to home: China.

A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.”

And the leviathan there is taking action:

In an extraordinary move, the People’s Bank of China has begun lending money to investors to buy shares in the flailing market. The Wall Street Journal reports this “liquidity assistance” will be provided to the regulator-owned China Securities Finance Corp, which will lend the money to brokerages, which will in turn lend to investors.

The dramatic intervention marks the first time funds from the central bank have been directed anywhere other than the banks, signalling serious concern from authorities about the crisis.
At the same time, Chinese authorities are putting a halt to any new stock listings. The market regulator announced on Friday it would limit initial public offerings — which disrupt the rest of the market — in an attempt to curb plunging share prices.

While the exact amount of assistance hasn’t been revealed, the WSJ reports no upper limit has been set.
All short-selling — the practice of betting that stocks will fall — has been banned, and Chinese media has rushed to reassure citizens.”

This is from News.com Australia

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“U.S. Dollar Substitute to Go Public on Oct 20th?”

This article is dated April 23, 2015.

IMF headquarters in Washington D.C. expected to release huge money announcement Oct 20th

IMF headquarters in Washington D.C. expected to release huge money announcement Oct 20th

The International Monetary Fund is one of the most secretive and powerful organizations in the world.

They monitor the financial health of more than 185 countries… they establish global money rules… and provide “bail-out” assistance to bankrupt nations.

And on Oct 20th of this year, the IMF is expected to announce a reserve currency alternative to the U.S. dollar, which will send hundreds of billions of dollars moving around the world, literally overnight.
According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush’s Treasury department, “Once the [other currency] becomes an alternative to the dollar, rules of the game begin to change.”

And Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative “is likely to transform the financial landscape in the next 5-10 years.”

Read the rest at The Crux

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Colt Firearms May Be Saved from Bankruptcy By Morongo Indians Of Southern California

colt logo

Colt’s has filed for bankruptcy. Without help the company will fold. It has to be because of poor management. Gun businesses have been flourishing for the past 6-8 years.

Now the Wall Street Journal reports that the Morongo Band is considering an investment. There are fewer than a thousand members but the do own 35,000 acres near Palm Springs, California.

An aerial view of the Morongo Band of Mission Indians’s casino and resort, which sit on tribal land. The Morongo are riding to the defense of embattled gun maker Colt Defense. Morongo Band of Mission Indians

An aerial view of the Morongo Band of Mission Indians’s casino and resort, which sit on tribal land. The Morongo are riding to the defense of embattled gun maker Colt Defense. Morongo Band of Mission Indians

We are the West,” said Drew Ryce, attorney for the Morongo tribe, which is based in Southern California near Palm Springs. “All we know is that the company failed and we don’t want that to happen. It’s an iconic American company. It shouldn’t fail. It shouldn’t go away.”

Colt foundered financially after losing key military contracts. Bondholders blame Sciens for letting the military contracts slip away due to alleged failure to invest to keep Colt competitive. Sciens denies mishandling the company. Colt, Sciens and a lawyer for bondholders didn’t respond to a request for comment on the interest from the Morongo.

The Morongo aren’t taking sides, said Vickie Driver, a Texas bankruptcy lawyer advising the tribe on how to find a way in to the chapter 11 action. “We’re open, ready to talk. Colt needs something to right its ship,” she said.”

I like the last line:

For Colt’s Native American suitors, it’s not just business; it’s history, interest and commitment, their attorney said. “We have gone to great lengths to get our hands on Colts,” he said. “Just ask General Custer.”

Hat tip to Peter for finding this.

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Why White Supremacists OVERWHELMINGLY voted to elect Barack Hussein Obama to the Presidency (Part One)

BUMPED from it’s original publication date of March 7th 2010…

A worthwhile read republished in advance of the Supreme Court rulings that will be coming down later this week and the Eulogy that President Obama intends to deliver in Charleston when he will no doubt lecture us all on our evil racism. It makes a very interesting read these 5 Years later now that the President and his Administration has proven themselves to be the most powerful and disruptive Racists in American History. When their time in office finally expires it may also be accurate to refer to them as the most deadly Racists in American History as well.

I’m getting a real kick out of the level of sensitivity expressed in the communication of this publication that is over 5 Years old now. Wow, I was really going out of the way to not be offensive. How naïve of me. I doubt that I will make that same mistake twice.

Enjoy…

Yes, this may come as a surprise to many, especially those in the Obama Administration, Jimmy Carter, Senator Sheldon Whitehouse, the NAACP, ACLU, Coffee Party and the Mainstream Media…

The piece I am now attempting to present has been the most exhausting writing I have done in a while. This is my third attempt. Other times when I have tried this I was angry. When I wasn’t angry anything I wrote didn’t communicate effectively. More than that, it’s a tedious topic filled with taboo subject matter and sometimes trying to run between the raindrops without getting wet just makes for confusion and exhaustion. Thusly, this is a piece that I could never finish. I don’t even know if I will finish it now but if you are reading these words then yes I did.

More below the fold…

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