In The News Today

Posted at 9:53 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

But whatever you do, don’t call it “QE”…because that denotes monetization?

Fed Looked to Advance Discussion of Reserves Amid Repo Turmoil
October 9, 2019

Federal Reserve policy makers, jolted by last month’s disturbances in short-term funding markets, talked at their most recent meeting about the appropriate level of bank reserves the system needs, paving the way for the likely balance-sheet expansion that Chairman Jerome Powell flagged on Tuesday.

The minutes from the Federal Open Market Committee’s Sept. 17-18 gathering showed that participants noted the possibility of resuming trend growth of the balance sheet to help stabilize reserves. Policy makers also suggested that the committee should consider the merits of introducing a standing repurchase agreement facility — a new tool to control short-term rates.

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Bill Holter’s Commentary

So what do you believe? Market based numbers or the BLS propaganda?

Global Air Freight Decline Now Worst Since 2008 Financial Crisis
October 12, 2019

The escalating trade war between the US and China has accelerated the synchronized global downturn. Global exports continue to collapse, and the global Purchasing Managers Index (PMI) remains under 50, stuck in contraction territory. All of these ominous signals indicate a global trade recession could be imminent in 2020.

New data from the International Air Transport Association (IATA) shows global air freight volumes, measured in freight tonne kilometers (FTKs), plunged 3.9% in August YoY, and this was the tenth consecutive month of contraction and the most extended decline since the 2008 financial crisis.

Global trade volumes are quickly slowing, down over 1% from a year ago.

Trade across the world could be at a standstill by 2H20. Air cargo volumes have been hit with tremendous macroeconomic headwinds from a global slowdown that started in late 2017. An intensifying trade war between the US and China has undoubtedly accelerated the global downturn, damaging emerging markets that are highly exposed to exports, like Europe, India, and many countries in Asia.

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Bill Holter’s Commentary

This is true for the entire system from top to bottom!

Beware of Funny Financials
October 11, 2019

(Bloomberg Opinion) — However frothy valuations currently seem to be, optimists can always argue they’re justified by strong earnings. In the past four years, S&P 500 operating earnings per share have grown by nearly 40%.

Those numbers, however, may be as airy as the asset prices they support. The U.S. government’s national income and product accounts — which cover a broader number of businesses than the S&P, use tax returns and adjust for certain accounting practices — suggest that corporate profits actually peaked in 2014 and have been stagnant since. The national accounts also show significant downward revisions to corporate profit margins over the previous five years. While one would expect some discrepancies between that data and S&P numbers, which are based on Generally Accepted Accounting Principles (GAAP), the gulf is too wide to be ignored.

What’s going on? In many cases, accounting choices appear to be distorting results. In early 2019, General Electric Co. reported GAAP losses of $2.43 per share; under adjusted figures it earned $0.65 per share. Tesla Inc. reported full-year GAAP losses of $5.72 per share but “non-GAAP” losses were only $1.33 per share. Over 95% of S&P 500 companies regularly use at least one non-GAAP measure, up about 50% over the last 20 years.

One question is how companies choose to recognize income. In the case of long-term, multi-year contracts, such as construction projects, reported revenue can be based on a formula: a portion of the total contract amount, calculated as costs incurred in the relevant period as a percentage of total forecast costs. Understating estimated final costs allows margins to be increased and greater revenue to be recognized up front.

Following the collapse of Carillion PLC, the firm was found to be aggressive in recording income which was sensitive to small changes in assumptions. Given the trend to converting sales of products (such as software) into long-term service contracts, these risks are only going to grow.

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Bill Holter’s Commentary

This should prove to be some good stuff!  Keep in mind, this whistleblower will have recorded voices/images as opposed to third hand hearsay.  The left while trying to protect an “anonymous” whistleblower, will somehow find fault and call for this person’s head!

“The CNN Tapes Are Coming”: Project Veritas Teases A Coming “CNN Whistleblower”
October 12, 2019

Having exposed the disturbing realities inside Facebook, Google, The New York Times, and The State Department; Project Veritas’ James O’Keefe just hinted at what could be his biggest exposé yet…

Teasing what appears to be a real whistleblower – and remember, these individuals should be protected, according to Schiff et al. – O’Keefe just told an audience in Washington DC that “our next Project Veritas #BeBrave insider is from within CNN.”

 

 

 

 

 

 

 

 

Teasing what appears to be a real whistleblower – and remember, these individuals should be protected, according to Schiff et al. – O’Keefe just told an audience in Washington DC that “our next Project Veritas #BeBrave insider is from within CNN.”

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