GM auto sales have crashed and the outlook looks dismal. US construction spending declines as the housing market implodes. Manufacturing is not improving. Quarter of a trillion dollars in US savings have been wiped away. American income growth has slowed as the economy continues to stall. Trumps the funding of MyRA that Obama created to keep the bond buying ponzi scheme afloat. The sanctions on Russia will most likely drive other countries closer together which will push fuel prices up. The corporate media is going all out with as much propaganda as they can muster to convince the public its time to get rid of Trump. Imran Awan might have been selling secrets to other countries. The Judiciary committee is pushing to have Mueller removed from the special investigator position. Maduro is now going after his opposition. Trump is thinking about recalling the troops from Afghanistan. North Korea’s missile test was not successful it broke apart before it hit the water. Qatar and Turkey are having drills in the Persian Gulf. Russia has more jet fighters in Syria .Trump decided to stop funding the moderate rebels when he saw these terrorists perform a horrible act.
Check Out The X22 Report Spotlight YouTube Channel – X22Report Spotlight
Please check Newzsentinel.com for the latest news on the economic collapse. The Sentinel Alerts are updated throughout the day. If you haven’t already, go to “The People” and join the community of people who are helping each through the economic collapse.
Current News – 08.01.2017
- It was expected to be a bad quarter for General Motors. It ended up being abysmal.
- GM reported that July auto sales crashed by a whopping 15%,
- This is how the company explained this dramatic decline in production:
“We have strategically decided to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,” Kurt McNeil, U.S. vice president of Sales Operations, says in a statement.
- Which would be great, however judging by the almost negligible drop in dealer inventory, which saw the number of cars parked at dealer lots decline by just 40K to 939,831, resulting in a near record 104 days of sales, it appears that GM needs to shutter production for months on end to normalize GM’s unprecedented channel stuffing.
- And speaking of GM’s “competitors”, it wasn’t any better there, with Chrysler reporting a July auto sales drop of -10.5%, also far below the 6.1% expected.
- Fiat brand -18%
- Chrysler brand -30%
- Jeep brand -12%
- Dodge brand -12%
- Ram brand sales were flat y/y
- Fleet sales -35%
- And some other car makers:
- Ford down -7.4%, Exp. down -5.5%
- Volkswagen down -5.8%
- Honda down -1.2%
- Mazda down -3%
- At this rate, the US auto sector could become the catalyst that finally tips the US economy over into recession.
- Headline growth in US construction spending collapsed in July to just 1.6% YoY – the weakest since 2011.
- construction spending tumbled 1.3 percent to $1.21 trillion – the lowest level since September 2016 – drastically missing economists’ estimates of a 0.4% increase.
- Federal government construction spending crashed 9.5% – the largest drop since December 2010.
- Public construction spending has hovered in negative territory for the most part of the past year
- Government projects’ share of total construction outlays was less than 22 percent in June, the smallest since 2006.
- Does this look ‘transitory’ to you?
- As part of its historical revision to GDP, the BEA also had to adjust personal income and spending, with the full results released in today’s July report. What it revealed was striking: over the revised period, disposable personal income for US household was slashed cumulatively by over $120 billion to just under $14.4 trillion,
- First, as the following table shows, while government pay has remained roughly flat over the past 3 years, growing in the mid-2% to mid 3% range, wages and salaries for private workers have been steadily declining , wage growth has slumped to just 2.5% in June,
- But a more troubling aspect of today’s revision is what the drop in income and burst in spending means for the average household’s bank account: following the latest annual revision, what until last month was a 5.5% personal saving rate was revised sharply lower as a result of the ongoing downward historical adjustment to personal income and upward adjustment to spending, to only 3.8%.
- In dollar terms, this revision means that a quarter trillion dollars, or $226.3 billion, in savings was just “wiped away” from US households
- This means that either households will have to incur this much debt to continue on the previous spending “trendline”, or a quarter trillion in potential growth from the future economy (recall 70% of US GDP is the result of consumer spending), has just been chopped off.
- After last week’s revised BLS data showed desperate Americans saving the least since the recession…
- personal income growth ended in June (0.0% MoM) missing expectations and falling to its lowest level since November. Spending growth also slumped
- Overall, real personal spending growth stalled…
- Obama announced the creation of a new financial product that would allow American workers, those without access to retirement accounts anyway, to directly participate in the U.S. Treasury’s debt ponzi on a tax-deferred basis. The accounts were cleverly named MyRA and were intended to be a substitute for people who didn’t have access to an employee-sponsored 401k…with one little catch…money deposited in the accounts could only be invested in U.S. government bonds.
- To summarize, a MyRA was, more or less
President Barack Obama ordered the creation of the so-called starter accounts three years ago, and they became available at the end of 2015. Since then, about 20,000 accounts have been opened, with participants contributing a total of $34 million, according to the Treasury; the median account balance was $500. The program has cost $70 million since 2014, according to the Treasury, and would cost $10 million a year in the future.
- An Obama-era program that created savings accounts to help more people put away money for retirement is being shut down by the Treasury Department, which deemed the program too expensive.
- Really surprising that people didn’t want to open a really restrictive IRA substitute where proceeds could only be invested in a ponzi scheme…
- Over 99% of investors continue to live in delusion.
- That delusion is that stocks are NOT in a bubble.
- They are. In fact, it’s arguably about to become the biggest stock bubble in history.
- According to John Hussman, stocks have been more expensive based on median valuations only ONCE before in history.
- That was the week of March 24 2000… right around the absolute PEAK of the Tech Bubble.
- Here’s Hussman’s chart:
Here’s what came next for stocks…
- If President Trump signs the dangerous bill, it will essentially guarantee the fall of the U.S. petrodollar as the global reserve currency.
- The new sanctions are meant to directly target the main strength of the Russian economy, the energy sector, in an effort to compel U.S. client states in Europe to abandon mutually beneficial long-term energy deals with Russia.
- This dynamic will unquestionably bring Russia and Beijing closer together, as the Russians will hedge against the loss of energy deals with American vassals in Europe by solidifying long-term energy, economic and security cooperation with the Chinese.
- Essentially, if Trump signs the bill, the writing is on the wall: Russia and China must form a strategic alliance to withstand the methodical movements of the U.S. empire meant to destabilize their respective governments – with a strategic goal of preventing Eurasian integration.
- Another important factor to consider when analyzing these latest moves by the United States is that China has no obligation to honor the U.S. sanctions, and in fact, is more likely to increase cooperation with the Russians as a result – especially in terms of the energy sector.
- According to The Washington Post, US President Donald Trump advised his son with a statement which claimed Trump Jr. had met with Russian lawyer Natalia Veselnitskaya to discuss adoption during his flight home, after attending the G20 summit in Germany.
- US media is reporting that the statement prepared by father and son was “misleading”, as emails later released by Trump Jr., himself prove that Trump Jr., took the meeting after being suckered into it via an email from British pop music promoter Rob Goldstone, and being promised that the Russian lawyer has some information on Hillary Clinton.
- You need to scroll to the end of the WaPo article, to find an admission that nothing illegal was going on between Trump and his son.
- The Debbie Wasserman Schultz IT hacker scandal keeps growing, with no mainstream media covering any of this,
- Judge Napolitano revealed that Imran Awan may have been selling US secrets to foreign agents.
- Here is what Napolitano told Stuart Varney…
He [Awan] was arrested for some financial crime. That’s the tip of the iceberg. The real crime against him was that he had contact, he had access to emails of every member of Congress and he sold what he found in there. What did he sell and to whom did he sell it. That’s what the FBI wants to know. This may be a very, very serious national security investigation.
- House Judiciary Committee member, Representative Trent Franks (R-AZ), is calling on Robert Mueller, special counsel for the Department of Justice’s Russia investigation, to resign over an alleged “conflict of interest” resulting from a personal relationship with James Comey who is a person of interest in the investigation. Per the Washington Examiner:
“Bob Mueller is in clear violation of federal code and must resign to maintain the integrity of the investigation into alleged Russian ties,” Franks said. “Those who worked under them have attested he and Jim Comey possess a close friendship, and they have delivered on-the-record statements effusing praise of one another.”
Franks said. “Until Mueller resigns, he will be in clear violation of the law, a reality that fundamentally undermines his role as Special Counsel and attending ability to execute the law.”
Michael Dreeben, who serves as the Justice Department’s deputy solicitor general, is working on a part-time basis for Mueller, The Washington Post reported Friday.
Dreeben donated $1,000 dollars to Hillary Clinton’s Senate political action committee (PAC), Friends of Hillary, while she ran for public office in New York. Dreeben did so while he served as the deputy solicitor general at the Justice Department.
Jeannie Rhee, another member of Mueller’s team, donated $5,400 to Hillary Clinton’s presidential campaign PAC Hillary for America.
Andrew Weissmann, who serves in a top post within the Justice Department’s fraud practice, is the most senior lawyer on the special counsel team, Bloomberg reported. He served as the FBI’s general counsel and the assistant director to Mueller when the special counsel was FBI director.
Before he worked at the FBI or Justice Department, Weissman worked at the law firm Jenner & Block LLP, during which he donated six times to political action committees for Obama in 2008 for a total of $4,700.
James Quarles, who served as an assistant special prosecutor on the Watergate Special Prosecution Force, has donated to over a dozen Democratic PACs since the late 1980s.
- intelligence agents detained opposition leaders Leopoldo Lopez and Antonio Ledezma at gunpoint in their homes and took them into custody.
- The two politicians have been under house arrest for their involvement in anti-government protests and organizing, Videos published online by family members of both men show them being led away in the middle of the night by agents from Sebin, the Venezuelan intelligence agency. Lopez’s wife Lilian Tintori said in a tweet: “They’ve just taken Leopoldo from the house. We don’t know where he is.”
- The Russian government has issued a public warning against any thought by the Western powers – notably the US – sending weapons to Ukraine.
- The suggestion that weapons might be sent to Ukraine has been repeatedly floated in the US, where it was part of the Republican Party platform in last year’s election until Donald Trump famously removed it.
- The suggestion was recently revived again by Kurt Volker, the recently appointed US envoy to Ukraine, following his visit there.
Kurt Volker told the BBC that arming Ukrainian government forces could change Moscow’s approach.
- The proposal is however fiercely opposed by the US’s major European allies – notably Germany – with German Chancellor Merkel having repeatedly spoken out against it.
- Someone in Washington seems to understand this because shortly after Volker floated his proposal Huckabee Sanders, the White House’s news press secretary, is said to have poured cold water on the idea.
- The United States began removing furniture and equipment from a diplomatic property in Moscow on Tuesday in the first sign of compliance with a Kremlin order to slash its presence in Russia as retaliation for new U.S. sanctions.
- President Vladimir Putin has ordered the United States to cut around 60 percent of its diplomatic staff in Russia by Sept. 1, and said Moscow will seize two U.S. diplomatic properties in response to sanctions approved by Congress last week.
- After months of the Pentagon failing to sell a concrete plan of military escalation in Afghanistan to the White House, officials now say that the administration is considering getting back on track with a drawdown, that would lead to a full pullout from the country after 16 years.
- US officials have responded to last week’s North Korea ICBM test by hyping up the growing “threat” posed by the nation’s missile program, claiming that North Korea now has the capability of hitting “most” of the United States with a missile.This narrative plays well into the administration’s eagerness to keep escalating threats and sanctions, but it’s not true. As with the previous “successful” missile test, this most recent one wasn’t really a success, and once again demonstrated North Korea’s limitations on such missiles.
- In reality, experts say the video footage of the missile shows that it broke up upon re-entry, and hit the sea in pieces.
- Facing threats and angry condemnations from the US for not having resolved the North Korea situation for them, Chinese officials are now suggesting that they are backing away from the situation themselves, and expect the US and North Korea to work it out by themselves.
- Chinese Ambassador to the UN Liu Jieyi warned that China had no way of yielding practical results by themselves on the dispute, and pushing for the “relevant countries” to get back together and resume diplomacy.
- Qatar says it is reportedly set to hold joint naval exercises with Turkey in the Persian Gulf waters
- Recent satellite images (dated July 15, 2017) of the Khmeimim Airbase in Syria’s Latakia Governorate have surfaced on social media. The pictures reveal the presence of a total of thirty-three (33) combat aircraft belonging to the Russian Aerospace Forces at the military installation.
- The breakdown Russian combat aircraft at the airbase have been identified as follows:
- Eleven Sukhoi Su-24 tactical bombers;
- Three Sukhoi Su-25 attack aircraft;
- Three Sukhoi Su-27 strategic fighters;
- Six Sukhoi Su-35 multirole fighters;
- Four Sukhoi Su-30 fighter (identifiable by canards on the forward fuselage); and
- Six 6 Su-34 strike fighters.
Earlier this year, President Donald Trump was shown a disturbing video of Syrian rebels beheading a child near the city of Aleppo. It had caused a minor stir in the press as the fighters belonged to the Nour al-Din al-Zenki Movement, a group that had been supported by the CIA as part of its rebel aid program.
The footage is haunting. Five bearded men smirk as they surround a boy in the back of a pickup truck. One of them holds the boy’s head with a tight grip on his hair while another mockingly slaps his face. Then, one of them uses a knife to saw the child’s head off and holds it up in the air like a trophy. The murderers were supposed to be the good guys: our allies.
Trump wanted to know why the United States had backed Zenki if its members are extremists. The issue was discussed at length with senior intelligence officials, and no good answers were forthcoming, according to people familiar with the conversations