The first panacea for a mismanaged nation,” he said, “is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
Jim Sinclair’s Commentary
John Williams shares the following with us.
- Minimally Weaker-Than-Consensus Labor Numbers— Unremarkable Except for the Regular, Horrendous Reporting Quality
- July Unemployment: 6.2% (U.3), 12.2% (U.6), 23.2% (ShadowStats)
- Real Construction Spending – Stagnation with a Recent Downside Bias
- Economy Remains in Serious Trouble
"No. 647: July Employment and Unemployment, June Construction Spending"
Paul Craig Roberts – This Mega-Collapse Will Terrify People
Today former US Treasury official, Dr. Paul Craig Roberts, warned King World News that a coming mega-collapse will terrify people around the world. He said the cause of this mega-collapse will be “a complete and total failure of the United States government.” Below is what Dr. Roberts had to say in this shocking interview.
Eric King: “Dr. Roberts, as you know KWN interviewed the man who was called upon to execute QE1, and he said the Fed’s balance sheet was at “$4.4 trillion, compared to $800 billion pre-financial crisis. So this is really uncharted territory that I find quite shocking.”
Dr. Roberts: “Well it is quite shocking. And if all that money had gotten into the economy, we would be experiencing a hyperinflation…..
Don’t Be Fooled by the Fed’s Placid Facade
Tuesday, 29 Jul 2014 08:21 AM
By Mohamed A. El-Erian
One of the unwritten rules of modern central banking is that, unless compelled by events on the ground, officials should refrain from making big policy changes during the summer. With many traders on holiday, any sudden moves risk destabilizing markets.
Look for the Federal Reserve to abide by this rule when it meets Tuesday and Wednesday — and the European Central Bank to do the same in early August. Janet Yellen and her colleagues on the policy-making Federal Open Market Committee will maintain their well-telegraphed, gradualist approach, reducing monthly bond purchases by another $10 billion, signaling no urgency in raising interest rates, and reminding us of the importance of looking beyond the unemployment rate to understand what’s happening in the job market.
Still, behind this comforting “steady as she goes” facade, Fed officials will be dealing with five complex and inter-related issues, the resolution of which will be months in the making:
To what extent is the central bank’s policy approach increasing the risk of financial instability down the road? This question is preoccupying a growing number of regional Fed presidents.
How much damage has the recession inflicted on the economy’s growth potential and its productivity, thus limiting the effectiveness of Fed policies?
How quickly will this year’s faster-than-expected drop in the unemployment rate translate into wage gains, and will they undermine the Fed’s 2 percent inflation target?
EU Announces New Washington-Pleasing, Russia-Wristslap Sanctions
Submitted by Tyler Durden on 07/29/2014 11:05 -0400
After unleashing a 10-page report of the death and destructive economic impact they could have on Russia via sanctions, the European leaders have agreed to issue travel bans, some asset-freezes, and trade curbs on various new individuals and business entities. The Goldilocks sanctions… just enough to please Washington, not enough to infuriate Putin into ‘boomerangs’.
*EU AMBASSADORS’ MEETING ON RUSSIA SANCTIONS REACHES DEAL: FT
EU ambassadors have reached agreement on a new round of travel bans and asset freezes in response to the crisis in Ukraine, diplomats say.
* * *
*EU AGREES CURBS ON RUSSIAN BANKS, EXPORT OF SOME TECHNOLOGY
*EU TO RESTRICT EXPORT OF EQUIPMENT FOR RUSSIAN OIL PRODUCTION
*EU TO CURB STATE-OWNED RUSSIAN BANKS’ ACCESS TO CAPITAL MARKETS
*EU TO IMPOSE EMBARGO ON FUTURE ARMS SALES TO RUSSIA
*EU TO CURB SALE OF ‘DUAL-USE’ MACHINERY, ELECTRONICS TO RUSSIA
*SANCTIONS WILL BE REVIEWED AFTER 3 MONTHS: EU DIPLOMAT
*AIDE SAYS U.S. HAS APPROVED EXPORTS OF DUAL-USE GOODS TO RUSSIA
*COMMERCE AIDE SAYS U.S. HASN’T REVOKED RUSSIA EXPORT LICENSES
*U.S. GOODS APPROVED FOR EXPORT HAVE MILITARY APPLICATIONS
I.e. the rockets for US military satellites
Moscow may walk out of nuclear treaty after US accusations of breach
Russia said to be on point of leaving 1987 treaty, after Obama administration said it violated the accord with tests of R-500
Alec Luhn in Moscow and Julian Borger
theguardian.com, Tuesday 29 July 2014 07.38 EDT
Russia may be on the point of walking out of a major cold war era arms-control treaty, Russian analysts have said, after President Obamaaccused Moscow of violating the accord by testing a cruise missile.
There has been evidence at least since 2011 of Russian missile tests in violation of the 1987 intermediate range nuclear forces (INF) treaty, which banned US or Russian ground-launched cruise missiles with a 500 to 5,500-mile (805 to 8,851km) range. But the Obama administration has been hesitant until now of accusing Moscow of a violation in the hope that it could persuade Vladimir Putin, the Russian president, to stop the tests or at least not deploy the weapon in question, known as the Iskander, or R-500.
Washington has also been reticent because of the technical differences in definition of what constitutes the range of a missile under the INF treaty. That ambiguity now seems to have dropped away. According to Pavel Felgenhauer, a defence analyst and columnist for the independent Russian newspaper Novaya Gazeta, Russia has indeed broken the treaty by testing the R-500 which has a range of more than 1,000km.
"Of course, this is in gross violation of the 1987 treaty, but Russian officials including Putin have said this treaty is unfair and not suitable for Russia," Felgenhauer said. "The United States doesn’t have [medium-range missiles] but other countries do have them, such as China, Pakistan and Israel, so they say this is unfair and wrong."
Russian press reports have suggested the missile may even be in deployment, with state news agency RIA Novosti reporting in June that the "Russian army currently uses its Iskander-M and Iskander-K variants." Felgenhauer said he doesn’t believe the missile has been deployed, although he said it’s entirely possible that Russia will leave the treaty amid tensions with the US.
U.S. homeownership rate falls to 19-year low in second quarter
WASHINGTON Tue Jul 29, 2014 10:26am EDT
(Reuters) – Homeownership in the United States hit a 19-year low in the second quarter as financially squeezed Americans opted to rent, pointing to a sluggish housing market recovery.
The seasonally adjusted homeownership rate fell to 64.8 percent, the lowest level since the second quarter of 1995, the Commerce Department said on Tuesday.
The rate, which peaked at 69.4 percent in 2004, was 65.0 percent in the first three months of 2013.
IMF warns of adverse effects of anti-Russia bans
Tuesday Jul 29, 201401:37 PM GMT
The International Monetary Fund (IMF) has warned that the sanctions imposed on Russia over the ongoing crisis in Ukraine would have adverse effects on a global scale.
Speaking at a news conference on Wednesday, IMF spokesman William Murray said that the potential global impacts of the anti-Russia sanctions are “still under assessment, but clearly you would anticipate – through trade channels – that there would be an impact.”
Murray also emphasized that the sanctions are expected to affect the economies “that have very active and direct trade links with Russia, particularly in eastern and central Europe and central Asia.”
The remarks come amid reports that the European Union (EU) ambassadors have agreed to add 15 individuals and 18 companies to the sanctions blacklist targeting Moscow.
Under proposals considered by the 28-nation bloc’s member states, there could be a ban on European purchases of shares or bonds sold by Russian state-owned banks.
Brussels has so far imposed sanctions such as travel bans and asset freezes against Russian and pro-Russia figures. The restrictions were imposed after a decision by Ukraine’s then autonomous region of Crimea to join the Russian Federation in March. More than 60 individuals as well as firms have been put on the sanctions list.
The EU has called for tougher sanctions against Moscow since July 17, when the Malaysia Airlines Boeing 777 was reportedly shot down over Ukraine’s volatile Donetsk region while en route from the Dutch city of Amsterdam to Kuala Lumpur, killing 298 passengers and crew on board.
Jim Sinclair’s Commentary
A strong disagreement with MSM and the party line.
US is no safer after 13 years of war, a top Pentagon official says
The outgoing head of the Defense Intelligence Agency says that new players on the scene are more radical than Al Qaeda, and the core Al Qaeda ideology has lost none of its potency.
By Anna Mulrine, Staff writer July 28, 2014
The nation is no safer after 13 years of war, warns a top US military official who leads one of the nation’s largest intelligence organizations.
“We have a whole gang of new actors out there that are far more extreme than Al Qaeda,” says Lt. Gen. Michael Flynn, head of the Defense Intelligence Agency, which employs some 17,000 American intelligence collectors in 140 countries around the world.
That the United States is no safer – and in some respects may be less safe – even after two wars and trillions of dollars could prove to be disappointing news for Americans, noted the journalist questioning General Flynn at the Aspen Security Forum last week.
Still, Flynn was firm on that point. “Yeah, my quick answer is that we’re not,” he said.
America is less safe today in large part because of the emergence of terrorist groups like the Islamic State, formerly know as the Islamic State of Iraq and the Levant. The group is stoking regional wars in Syria and Iraq that will only continue to increase in complexity, Flynn said.