Jim Sinclair’s Commentary
Mr. Williams shares the following with us.
- Scheduled for Second-Quarter 2015, Meaningful Benchmark Revisions to Industrial Production Could Be Unusually Large and to the Downside
- November Industrial Production Jump Encompassed Utilities Surge, Widespread Manufacturing Gains, and Declining Oil and Gas Production
- Utilities Output Spiked by Unseasonably-Cold Weather
- Seasonal Adjustments and Revisions Remain Serious Issues
- Significance of Headline Wholesale Inflation Is Muddled In Terms of Real-World Activity
"No. 681: November Industrial Production, Producer Price Index (PPI)"
All I Want for Christmas is a (Real) Government Shutdown
Written by Ron Paul
Sunday December 14, 2014
The political class breathed a sigh of relief Saturday when the US Senate averted a government shutdown by passing the $1.1 trillion omnibus spending bill. This year’s omnibus resembles omnibuses of Christmas past in that it was drafted in secret, was full of special interest deals and disguised spending increases, and was voted on before most members could read it.
The debate over the omnibus may have made for entertaining political theater, but the outcome was never in doubt. Most House and Senate members are so terrified of another government shutdown that they would rather vote for a 1,774-page bill they have not read than risk even a one or two-day government shutdown.
Those who voted for the omnibus to avoid a shutdown fail to grasp that the consequences of blindly expanding government are far worse than the consequences of a temporary government shutdown. A short or even long-term government shutdown is a small price to pay to avoid an economic calamity caused by Congress’ failure to reduce spending and debt.
The political class’ shutdown phobia is particularly puzzling because a shutdown only closes 20 percent of the federal government. As the American people learned during the government shutdown of 2013, the country can survive with 20 percent less government.
Instead of panicking over a limited shutdown, a true pro-liberty Congress would be eagerly drawing up plans to permanently close most of the federal government, staring with the Federal Reserve. The Federal Reserve’s inflationary policies not only degrade the average American’s standard of living, they also allow Congress to run up huge deficits. Congress should take the first step toward restoring a sound monetary policy by passing the Audit the Fed bill, so the American people can finally learn the truth about the Fed’s operations.
Jim Sinclair’s Commentary
For our Canadian friends.
Is the CRA creeping your Facebook page?
Fabio Campanella, Special to Financial Post | October 25, 2014 6:30 AM ET
Got a fancy new car? Doing a major renovation to your home? Eating at a lavish new restaurant? Why not let all your friends know what you’re doing by posting this to your social media accounts?
It’s second nature to so many Canadians nowadays to post pics and updates of their daily lives to social media. Generally you’re hoping your friends are following you; secretly you’re hoping they’re envious of the exquisite lifestyle you’re trying to portray. But your friends and followers may not be the only ones peering into your life, the Canada Revenue Agency (CRA) may be checking you out as well.
It’s called: Indirect Verification of Income and it’s an audit technique employed by the CRA. If your lifestyle and reported income don’t match up the CRA may decide to look into your affairs to see what’s actually going on.
So, for example, if you’re driving a luxury car, living in a high-income neighbourhood, sending your kids to private schools, and vacationing in Hawaii’s finest beachfront hotels but only reporting $45,000 of income on your tax return per year then you’re probably a great target for an audit by the CRA.
Open social media accounts are publicly accessible, so if you’re posting pics of yourself whizzing around in your Ferrari and lounging on the beach at a $5,000 per week resort then there’s nothing stopping a CRA auditor from gathering this data from your social media accounts to build a case against you. In fact, several CRA officials have publicly spoken about using taxpayers social media accounts in such a manner.
If you’re audited, and your lifestyle is not in line with the income you report, and you cannot explain the difference, the CRA can assess taxes based on indirect methods of calculating your income. This can lead to taxes owing, severe penalties and interest, and in the most extreme of cases, criminal convictions.
This Time Is The Same: Like The Housing Bubble, The Fed Is Ignoring The Shale Bubble In Plain Sight
by David Stockman • December 8, 2014
We are now far advanced into the third central bank generated bubble of the last two decades, but our monetary politburo has taken no notice whatsoever of its self-evident leading wave. Namely, the massive malinvestments and debt mania in the shale patch.
Call them monetary bourbons. It is no exaggeration to say that inhabitants of the Eccles Building deserve every single word of Talleyrand’s famous epithet: “They learned nothing and forgot nothing.”
To wit, during the last cycle they claimed to be fostering the Great Moderation and permanent full employment prosperity. It didn’t work. When the housing and credit bubble blew-up, it washed out all the phony gains from the Greenspan/Bernanke printing spree. By the time the liquidation was finished in early 2010, there were 2 million fewer payroll jobs than there had been at the turn of the century.
Never mind. The Fed simply doubled-down. Instead of expanding its balance sheet by 50%, as happened during the eight years between 2000 and 2008, it went into monetary warp drive, ballooning its made-from-thin-air liabilities by 5X in only six years. Yet even after Friday’s ballyhooed jobs report there were three million fewer full-time breadwinner jobs in November 2014 than there were in the early 2000s.
Americans are 40% poorer than before the recession
By Quentin Fottrell
Published: Dec 13, 2014 8:07 a.m. ET
The Great Recession is officially over, but Americans are still 40% poorer today than they were in 2007, the year before the global financial crisis.
The net worth of American families — the difference between the values of their assets, including homes and investments, and liabilities — fell to $81,400 in 2013, down slightly from $82,300 in 2010, but a long way off the $135,700 in 2007, according to a new report released on Friday by the nonprofit think-tank Pew Research Center in Washington, D.C.
“The Great Recession, fueled by the crises in the housing and financial markets, was universally hard on the net worth of American families,” the report found.
There is also a dramatic disparity in net worth between races. The median net worth of white households was $141,900 in 2013, down 26% since 2007. It declined by 42% to $13,700 over the same period for Hispanic households and fell by 43% to $11,000 for African-American households. One theory for the wealth gap: White households are more likely than other ethnicities to own stocks directly or indirectly through retirement accounts, the Pew report said.
Bankers Want Your Savings As Part of Their Next Bail-Out
Wed Dec 03, 2014 at 03:27 PM PST
Keep a close eye on what savings you have left. The financial honchos have plans for your money.
Ellen Brown, who writes at The Web of Debt is the only blogger that I am aware of who writes about the neoliberal machinations related to preparing for the next giant bank crashes. In a recent post she describes the latest plan adopted by the G20 nations. I believe this is crucial information for many and so wish to broadcast it further, including some background not covered in her post.
Since the financial crisis of 2008 central bankers and regulators have been busy drawing up plans for avoiding the next bank melt-down. Here in the US, banks considered by the government Too Big To Fail (TBTF) were bailed out six years ago with our tax money on the arguable rationale that if they were permitted to fail, they would take the entire economy down with them. The crisis led to a loud outcry from taxpayers and many savvy experts. They called for a breakup of TBTF banks as the most effective way to avoid future failures and the economic turmoil they engender.
It is no secret that the financial contingent of the Economic Royalists are in the driver’s seat worldwide. We need no more explanation than that to understand why the big banks, like Bank of America, Wells Fargo, JP Morgan Chase, were not broken up, contrary to the public interest. In fact, they are far larger today than they were in 2008, making the TBTF threat worse than ever.
So what plan have the geniuses come up with that both pacifies taxpayers and still saves the TBTF banks? You will be appalled. First, though, some explanation is in order. It is a little known fact that when we put money into a savings account at a bank it is no longer our money. Essentially we have loaned the money to the bank in return for an IOU and some paltry interest. In finance these deposits are referred to as unsecured debt. Theoretically. deposit accounts are insured by the FDIC for up to $250,000. The wrinkle is that the amount of money in the FDIC insurance fund is approximately $25 billion, while the total of deposits at US commercial banks is approximately $9,300 billion, yes that’s $9.3 trillion The failure of just one mega-bank would easily wipe out that fund. Since the FDIC would be unable to keep failing huge banks solvent an alternative is required.
Another Fabricated Jobs Report
Paul Craig Roberts
Everything we hear from the US government, the puppet governments of its vassal states, and the presstitute media is a lie. Truth is the declared enemy of the West. Those who try to tell the truth do so at cost to themselves. These costs can range from exclusion and slander to watch lists to prosecution and imprisonment. Brave people like Julian Assange, Edward Snowden, William Binney, and Bradley Manning have paid an extremely high price for standing up for truth against evil.
The question is: Is truth more powerful than the sword or is truth just an inconvenience and a threat to a reassuring life of delusion?
Some readers tell me that having to face the truth saps their confidence in the future.
Others express their disgust with clueless, complacent and willfully ignorant Americans who even if they understood what was going on lack the courage to defend their civil liberties and the truth that is liberty’s foundation. As one put it, “People are victims until they know the truth, but when they learn the truth and remain victims they become volunteers.”
This site is for those who do not want to be deceived by lies and become volunteers.
It is your site. It depends on your support. My enthusiasm is determined by your enthusiasm.
Another Fabricated Jobs Report — Paul Craig Roberts
Update: Tyler Durden points out that income and payroll tax receipts do not support the job claims made for the 2014 economy: http://www.zerohedge.com/news/2014-12-07/something-stinks-inside-bls-jobs-data
Risks of nuclear war rising because of global tensions and insecure stockpiles, warn experts
Monday 08 December 2014
Urgent action is needed to minimise the risk of a nuclear war, more than 120 senior military, political and diplomatic figures from across the world have warned.
Ahead of the Vienna Conference on the Humanitarian Impact of Nuclear Weapons, which starts today, the experts wrote in a letter that the danger of such a conflict was “underestimated or insufficiently understood” by world leaders.
The signatories include people from across the political spectrum such as former Conservative Defence Secretary Lord King, a Labour counterpart Lord Browne, former Foreign Secretaries Margaret Beckett and David Owen, and former Liberal Democrat leader Sir Menzies Campbell. John McColl, former Nato Deputy Supreme Allied Commander Europe, Lord Richards, former Chief of the Defence Staff, and General James Cartwright, former Vice-Chairman of the US Joint Chiefs of Staff, also signed the letter.