Greece lashes out at the IMF. Midwest farm bubble is getting ready to pop, American farms are in decline. Student loan bubble is worse than ever and its getting ready to pop. World’s largest container carrier has huge losses. Fitch has now created a narrative that if the economy should collapse it will be because of Trump. Recession warning, Treasury receipts turn negative. PWC has issued a new report which states that the western countries will become the new ‘third world’. This is in preparation for the collapse of the economy and how the monetary system will be moving from West To East. Record number of Americans have renounce their citizenship under Obama. 9th Circuit Court rejected Trump’s ban and disregarded the key fact, the law. Media Matters conspiring with Google and Facebook to shutdown alternative media.DHS reports the wall Trump wants to build will be 22 billion dollars. US fires a missile from LA towards China. Russia working with Haftar, the UN Backed government days are numbered. Elite trying to push Trump into a war with China, Iran and Russia. Power outage in Syria, reason unknown.
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Current News – 02.10.2017
- German finance minister Wolfgang Schäuble (shy bla) went on TV saying the only way Greece can get a haircut is if it leaves the Eurozone.
- The IMF reiterated that Greece will not be able to make its payments.
- Greece insists the IMF is wrong, yet it wants credit relief.
- Meanwhile, Greek unemployment is a “mere” 23%, despite the alleged Greek recovery.
- Greece does not want the IMF in the troika but if the IMF leaves, Germany is set to pull the plug. There is obviously some sort of game here, but it is logically impossible for Greece to hold the conflicting positions it has.
- Earlier this week the U.S Department of Agriculture released its biannual report of farm incomes which paints a very bleak picture for the American farmer. In its first forecast for 2017, the USDA sees real farm cash receipts down 14% versus 2015 and 36% from the previous high set in 2012 as farm debt continues to soar and leverage surges to all-time highs.
- As the Wall Street Journal notes, the deadly combination of rising input costs, lower grain prices, a strong dollar and excessive leverage will likely force many of America’s Midwest farmers out of business in 2017.
American farmers’ share of the global grain trade has fallen from 65% in the mid-1970s to 30% today, giving them less sway over prices.
Corn prices once varied year-to-year by less than $1 a bushel. Since 2006 they have shot up and dropped more than $4 a bushel.
- So where does that leave the American farmer? Real farm incomes in 2017 are expected to sink below 2010 levels which represents a 36% decline from the recent peak and a 14% decline since 2015.
- Meanwhile farm debt continues to rise at an astonishing rate…
- , farmer returns have crashed to the lowest levels ever.
- The price for an education has been rising rapidly while the value of that same education seems to be diminishing. Underemployment is an epidemic in the U.S. The 4 phases are the systematic development of financial fragility, the movement to the brink of financial crisis,
- The Systematic Development of Financial Fragility
- This is the phase of the cycle when the bubble is expanding. For the student debt bubble this is last 20 years when the amount of student debt rose significantly faster than inflation. y. U.S. interest rates have been declining since the 1990’s. While the low levels of interest rates encourage lending, they also expose borrowers to rising rates in the future. Rising rates for student loans will mean a higher level of defaults similar to the rising rates that sparked the mortgage crisis,
- The Movement to the Brink of Financial Crisis
- This is where the United States finds itself currently. We have already seen speculative lending and financial engineering increasing.
- A common theme when the mainstream media discusses student loans is that they are exempt from bankruptcy proceedings. This means that unlike credit card debt and mortgages, student loans stay with you even if you declare bankruptcy. When the Clinton administration signed the Higher Education Amendments of 1998 they made defaulting on student debt impossible. This piece of legislation leads most economists to conclude that student loans can’t be in a bubble because borrowers are unable to default. To Boom Bust Market, this sounds very similar to claims that housing prices can never go down, a common idea espoused by economists during the housing boom of the mid 2000’s.
- The Disruption of Stability by a “Not Unusual” (Surprise) Event
- Given the events of 2016, surprise events suddenly don’t seem so uncommon. Brexit and Trump’s election are prime examples of surprise events that the financial media failed to predict. A surprise event for the student debt bubble could be the passing of new legislation.
- The final stage of the student loan bubble will be debt deflation. The increase in defaults from student loan borrowers will drive banks to lend more conservatively. Banks and financial institutions will be unwilling to invest in student loans because of their negative prior experiences with irresponsible student borrowers. Headlines in the press will be highlighting the high level of defaults and financial company failures. This last phase of the bubble is always the most painful.
- A.P. Moller-Maersk – reported a doozie of a “surprise” today: a loss of $2.67 billion in the fourth quarter, and a loss of $1.9 billion for the year 2016, its first annual loss since 2009, when shipping had come to a near standstill during the Global Financial Crisis, and its second loss since World War II.
- Revenues have been on a downward spiral since peaking in 2012 at just under $50 billion. By 2014, they were $47.6 billion. By 2015, $40.3 billion. And in 2016, revenues dropped another 12% to $35.5 billion.
- Despite President Donald Trump’s promise to stop companies from outsourcing production to Mexico by imposing a significant border tax on goods sold in America, some businesses ignore this threat.
- Rexnord Corp – The Milwaukee-based firm, which specializes in industrial products, looks to move its factory from Indianapolis to Mexico, despite Donald Trump singling out the company for their plans. Three-hundred American workers will lose their jobs.
- General Motors – Despite their commitment to invest $1 billion in US plants, General Motors (GM) plan to move their Detroit operations to Mexico.
- Ford – Like General Motors, car manufacturers Ford have promised Donald Trump that they will create thousands of new American jobs as part of their expansion plan. However, also like General Motors, they intend to move their Detroit factory to Mexico.
- Nucor – The North Carolinian steel producers, who employ over 20,000 people, intend to proceed with outsourcing production to Mexico, although their CEO John Ferriola has admitted they “are watching the situation in Washington very, very closely.”
- Caterpillar – The Illinois-based industrial manufacturers also plan to outsource production to a factory in Monterrey, Mexico. However, company CFO Brad Halverson has said they will “have to see how this plays.”
- In a major reversal to his stated foreign policy framework with China, in his first phone call held with China’s president Xi Jinping held on Thursday night, President Donald Trump agreed to honor the “one China” policy, easing a key source of diplomatic tension between the world’s two largest economies. The phone call came just one day after Trump sent Xi a letter stating he seeks a “constructive relationship” with China,
- The White House statement described the call as “lengthy” and “extremely cordial,” providing no further details on what they discussed.
- China and the United States also signaled that with the “one China” issue resolved, they could have more normal relations.
- foreign governments are dumping US Treasuries. The signs are coming from all sides. The data from the US Treasury Department points at it. The People’s Bank of China points at it in its data releases on its foreign exchange reserves. Japan too has started selling Treasuries, as have other governments and central banks.
- Some, like China and Saudi Arabia, are unloading their foreign exchange reserves to counteract capital flight, prop up their own currencies, or defend a currency peg.
- the net transactions of US Treasury bonds and notes in billions of dollars by foreign official institutions (central banks, government funds, and the like) on a 12-month moving average. Note how it started with a whimper, bounced back a little, before turning into wholesale dumping, hitting record after record (red marks added):
- in January the US Treasury brought in total receipts of $344 billion, versus outlays of only $293 billion, resulting in a surplus of $51 billion, substantially greater than the $40 billion expected (and well above last year’s $28 billion deficit), a surplus which however was largely due to a law requiring the IRS to delay sending out tax refund checks to household claiming certain tax credits. For the fiscal year through Jan.31, the total US budget deficit was $157 billion, and set to keep rising this year and for the foreseeable future.
- However, a more concerning datapoint emerges when looking at the annual change in the rolling 12 month total. It is here that we find the following, for the period ended Jan 31, total government receipts were $3.27 trillion. This number was 0.3% lower than the $3.28 trillion reported one year ago.
- Why is this important every time since at least 1970 when government receipts have turned negative on an annual basis, the US was on the cusp of, or already in, a recession. Indicatively, the last time government receipts turned negative was in July of 2008.
- … moments ago Trump was also preemptively cast as the scapegoat for the next global economic crash by none other than rating agency Fitch.
- In a self-explanatory report titled “The Trump Administration Poses Risks to Global Sovereigns“, Fitch is sounding the alarm on the potentially negative consequences of Trump’s economic policies, even though none have been officially disclosed yet.
- In the report Fitch warns that “the Trump Administration represents a risk to international economic conditions and global sovereign credit fundamentals” and cautions that because “US policy predictability has diminished,
- In short, one wrong policy by the Trump administration, and the carefully constructed house of cards, built over decades of globalization, is in danger of collapse, resulting potentially in a global economic crisis.
- And so, after two official warnings by some of the most established institutions, Trump has been officially put on notice that should anything bad happen to the world economy, it will be his fault, as all those who lit the burning fire, quietly wash their hands.
- First World
- The term “First World” refers to so called developed, capitalist, industrial countries, roughly, a bloc of countries aligned with the United States after word war II, with more or less common political and economic interests: North America, Western Europe, Japan and Australia.
- Second World
- “Second World” refers to the former communist-socialist, industrial states, (formerly the Eastern bloc, the territory and sphere of influence of the Union of Soviet Socialists Republic) today: Russia, Eastern Europe (e.g., Poland) and some of the Turk States (e.g., Kazakhstan) as well as China.
- Third World
- “Third World” are all the other countries, today often used to roughly describe the developing countries of Africa, Asia and Latin America. The term Third World includes as well capitalist (e.g., Venezuela) and communist (e.g., North Korea) countries as very rich (e.g., Saudi Arabia) and very poor (e.g., Mali) countries.
- according to a new report by management consultancy PricewaterhouseCoopers.
- That report takes a particular metric and simply projects it into the future. The First World will no longer be first. Indeed, arguably it will no longer even be second. The economic forecast in the PWC report shows the so-called First World on a steady slide to Third World status.
- “By 2050, emerging economies such as Mexico and Indonesia are likely to be larger than the UK and France, while Pakistan and Egypt could overtake Italy and Canada,” PWC said in a report published Tuesday.
- What metric does PricewaterhouseCooper rely upon as the basis for its economic projection? It uses an economic term called “purchasing power parity”. It is the total purchasing power of that population.
- While the U.S. mainstream media were presenting their usual “visions of sugar plums” (i.e. lies) about the U.S. economy before Christmas, they couldn’t hide the truth from the bottom line.
- “The strength around Thanksgiving and Christmas was insufficient to offset the sales weakness in the balance of the quarter,” Stifel, Nicolaus & Co analyst Richard Jaffe wrote.
- The only way that the U.S. retail sector was able to sell significant quantities of goods to consumers with near-empty wallets (and maxed-out credit cards) was by slashing prices to the bone – leaving little-to-nothing in profit. Does that sound like an economy that has been “recovering” for more than eight years? Does that sound like an economy literally overflowing with newly-conjured wealth? Hardly.
- The number of published expatriates for 4Q 2016 was 2,365, bringing the total number for 2016 to 5,411, setting a new all-time quarterly and annual record. By comparison, the number of expatriates for 2016 reflects a 26% increase over 2015 and a 58% increase over 2014 (3,415).
- Taking a more granular look at the past 20 years illustrates the staggering surge in the number of published expatriates that “coincidentally” corresponds with Obama’s election in 2008. In fact, the 2016 list is over 22x larger than 2008, the year just before Obama moved into the White House.
- The proposed cost is much higher than the $12-billion figure cited by Trump during his campaign and also higher than the $15 billion cited by Republican House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell.
The plan lays out what it would take to seal the border in three phases of construction of fences and walls covering just over 1,250 miles (2,000 km) by the end of 2020.
- The three-judge panel hearing the case included Judges William C. Canby Jr., a Jimmy Carter appointee; Richard R. Clifton, a George W. Bush appointee; and Michelle T. Friedland, a Barack Obama appointee.
- “Rather than present evidence to explain the need for the Executive Order, the Government has taken the position that we must not review its decision at all. We disagree,” they wrote.
- (f) Suspension of entry or imposition of restrictions by PresidentWhenever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate.Remarkably, in the entire opinion, the panel did not bother even to cite this statute, which forms the principal statutory basis for the executive order (see Sections 3(c), 5(c), and 5(d) of the order). That’s a pretty big omission over 29 pages, including several pages devoted to determining the government’s likelihood of success on the merits of the case.
- Andrew Napolitano: 9th Circuit Ruling ‘Intellectually Dishonest’
- Napolitano said, “The statute specifically says the president on his own, by proclamation, meaning he doesn’t have to consult with anybody else, can make the decision. The decision to ban is not reviewable. Judges are incapable of second-guessing the president on it. For that reason, he may be thinking the Supreme Court is going to invalidate it.”
- The U.S. State Department has more than doubled the refugee inflow from seven terror-prone countries since a Seattle judge’s decision to block President Donald Trump’s immigration reform, according to a report in The Washington Times.
- Since the Feb. 3 ruling, 1,100 refugees have entered the United States, with 77 percent arriving from the seven terror-prone countries outlined on Trump’s executive order.
- The White House says it is investigating leaks about President Trump’s calls with foreign leaders.
“We’re looking into the situation, yes, and it’s very concerning,” press secretary Sean Spicer said when asked about the leaks. “Some of them are done in a way that the release of that information is clearly a breach of a lot of protocols and laws.”
- Spicer has previously said that the White House would investigate the leaks.
- the official question posed by Ipsos – and the results sorted by country:
- Generally speaking, would you say things in this country are heading in the right direction, or are they off on the wrong track?
- Respondents from China and Saudi Arabia are the most enthusiastic, with 90% and 80% of people respectively answering that things are on the right track. That said, it would be interesting to look at Ipsos’ methodology here to see how they are ensuring valid responses from people under the rule of more autocratic regimes.
- The United States and Canada were in the middle of the pack. Only 35% Americans see things as being on the right track, while 54% of Canadians feel the same way.
- Generally speaking, Europeans, Mexicans, Brazilians, and South Koreans are the most pessimistic about future prospects.
- A recently leaked briefing document from political operator David Brock’s Media Matters, has exposed the hard-left activist group conspiring with Facebook and Google to create a strategy to marginalize and ban political thought outside of the progressive neoliberal paradigm – essentially censoring libertarian and conservative political speech.
- The leaked briefing book, entitled “Media Matters: The Top Watchdog Against Fake News and Propaganda — Transforming the Media Landscape” (obtained exclusively by the Free Beacon) was privately published by Brock in January to solicit donors, and lays out the strategy for controlling the U.S. media narrative.
- Brock implicates both Google and Facebook as co-conspirators in forwarding this “Fake News” narrative against independent media organizations like The Free Thought Project.
- Brock clearly articulates this strategy, as laid out on page two of his briefing book:
“Over the next four years, Media Matters will focus on achieving the following outcomes:
“Serial misinformers and right-wing propagandists inhabiting everything from social media to the highest levels of government will be exposed.
“Internet and social media platforms, like Google and Facebook, will no longer uncritically and without consequence host and enrich fake news sites and propagandists.
“Toxic alt-right social media-fueled harassment campaigns that silence dissent and poison our national discourse will be punished and halted.”
- This clear attempt to consolidate control over the informational narrative Americans are exposed to is dangerous, and nothing less than a true threat to freedom. In essence, Brock is attempting to create a more effective “propaganda model,” ”
- Thousands of American citizens are demanding that the White House issue an International Arrest Warrant for billionaire globalist George Soros.
- A new petition has already gathered almost 6,000 signatures, putting it on course to receive the 100,000 signatures needed to receive an official response from the White House.
- The petition states:
- George Soros is a menace to the free world and stands in the way of making America great again. He is guilty of the following crimes:
- 1) Financially supports open sedition in major American cities resulting in millions of dollars of property damage as well as loss of life.
- 2) Attempts to manipulate democratic elections by donating millions of dollars to his preferred candidates.
- 3) Seeks to curtail American sovereignty. In his own words: “The main obstacle to a stable and just world order is the United States … Changing [the] attitude and policies of the United States remains my top priority.”
- 4) Is a currency manipulator. Soros initiated a British financial crisis by dumping 10 billion sterling, forcing the devaluation of the currency and gaining a billion-dollar profit.
- The rattling of sabres grows ever louder. Military.com reports that the Air Force says an unarmed Minuteman 3 missile has been launched from California’s central coast in the latest test of the intercontinental system.
- The missile blasted off at 11:39 p.m. PDT Wednesday from Vandenberg Air Force Base northwest of Los Angeles.
- The Air Force says the missile carried test re-entry vehicles that headed for a target area 4,200 miles away to the the Marshall Islands in the Pacific Ocean.
- The Air Force routinely uses Vandenberg to test Minuteman missiles from bases around the country.
- This test involved personnel from Vandenberg’s 576th Flight Test Squadron and the 91st Missile Wing, Minot Air Force Base, North Dakota.
- After years of ‘close encounters’ of the Russian-kind, it appears the US military has found a new nation to fly close to.
“It must be pointed out that U.S. military planes frequently carry out reconnaissance in Chinese coastal waters, seriously endangering Chinese maritime security,” China’s Foreign Ministry spokesman Hong Lei Hong told reporters, adding that “we demand that the United States immediately cease this type of close reconnaissance activity to avoid having this sort of incident happening again.”
- CNN reports that two US defense officials confirmed that there was an “unsafe” close encounter between a US Navy P-3 Orion aircraft and a Chinese surveillance aircraft Wednesday in the general vicinity of the contested Scarborough Shoal in the South China Sea.
- One official said the Chinese plane was a People’s Liberation Army Air Force KJ-200.
- e two planes flew within 1,000 feet of each other in the general vicinity of the contested Scarborough Shoal in the South China Sea.
- On 11 January, Libyan militia leader General Khalifa Haftar met Russian officials aboard a Russian aircraft carrier off the coast of Tobruq, in eastern Libya. nt.
- During the Tobruq meeting, Haftar secured Russian support in exchange for unspecified basing rights in eastern Libya, . This has prompted increased diplomatic activity from the European Union (EU) outlining an increased role for Haftar in the Libyan Political Agreement (LPA) that underpins the UN-backed Government of National Accord (GNA).
- The Turkish military said Russia received all the necessary coordinates a day prior to the friendly fire incident in Syria which resulted in the deaths of three Turkish soldiers. Earlier, Moscow said its planes targeted the location in Syria based on guidance provided by Ankara.
- Since the air war against the so-called Islamic State kicked off in August 2014 ,the United States has spent just under $11 billion financing it. According to the most recent Pentagon figures,
- As of January 27, U.S. and coalition warplanes had flown 136,067 sorties to degrade and destroy the terrorist organization. 17,734 strikes had been carried out by the middle of last week with 10,948 occurring in Iraq and 6,785 happening in Syria. 31,900 targets had been reported damaged or destroyed by late September of last year including 164 tanks, 388 humvees and 8,638 fighting positions. A military official told CNN in early December that as many as 50,000 ISIS fighters are believed to have been killed since military operations began in 2014.
- Colonel John Dorrian, a spokesperson for the US-led coalition, has claimed that the ISIS capital of Raqqa will be isolated within weeks of operations.
- The United States conducts a “cosmetic” military campaign against the outlawed Daesh jihadist group, which suffered losses in the wake of Russia’s involvement, Syrian President Bashar Assad said.
- Assad further asserted that Daesh began losing ground following Russia’s involvement in September 2015.
- This article analyses the role of Amnesty International in the disinformation campaign on Syria, and suggests that this recent fake-news endeavour by Amnesty may aim to influence political decision-making in Washington on behalf of the faction supporting the activities of ‘moderate terrorists’ combating the Syrian government.
- President Donald Trump has announced in several occasions that he would cooperate with Russia to fight the jihadist-terrorist enclaves in the Middle East.  These terrorist strongholds foremost include those operating in Syria.
- In this line, a variety of PSYOP have been undertaken, among other by Amnesty International, to discredit the role of Syria and Russia in the important combat against jihadist terrorism. Now has Amnesty published a new fabricated report – presenting no evidence whatsoever – around ‘mass executions’ that would have taken place in a Syrian prison named as ‘Saydnaya’, and whose fictional physical features are depicted in an 3-D artistic creation made-up in an UK visual laboratory. 
- This is not the first time that Amnesty International faces international contempt for its biased position, respectively its groundless statements on the Syrian Conflict. Commenting the Amnesty report of December 23, 2015, “Syria: Russia’s shameful failure to acknowledge civilian killings”, the then United Nations Secretary General Ban Ki-moon concluded specifically regarding the verifiability issue in the said Amnesty report:
- A nationwide electricity blackout is currently plaguing Syria. The power cut was reported by the Syrian Ministry of Electricity today morning, via social media.
- According to the Ministry, the outage was caused by a technical failure, which occurred at 11:00 AM (Syrian time), and engineers are currently working hard to fix the issue, and thus, return power to Syria.
- Follow Reporter on Twitter for Updates: @SulimanM98