Layoffs in America and around the world continue. Caterpillar’s data shows we are well past a depression. The middle class in the US is completely destroyed. People should continue prep, the collapse is upon us. Banks charging customers who keep cash in the banks. Russia just pushed Saudi Arabia as the top producer of oil to China. China just issued its first bond outside of China, which threatens the dollar. Apple says no to backdoor to US Government and FBI. Canada’s new PM says he will start withdrawing troops in Syria and Iraq. Assad visits Russia. Iraq wants Russia’s help in destroying IS. IS and al-nusra are now joining forces to fight the Syrian armed forces. NATO is now preparing for WWIII. The FBI can’t explain why there are less Americans wanting to join IS.
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Current News – 10.21.2015
- CAT posted its first annual drop in retail sales in December of 2012, it has failed to see a rise in retail sales even once.
- Caterpillar has seen 34 consecutive months of declining global sales, and 11 consecutive months of double digit declines!
- Why is this important?
Below we show the latest monthly data from CAT which is once again in negative territory across the board, but more importantly, the global headline retail drop (down another 11% in August) has been contracting for 33 consecutive months! This is not a recession; in fact the nearly 3 year constant contraction – the longest negative stretch in company history – is beyond what most economists would deem a depression.
- industrial bellwether confirmed the world is now in an industrial recession, when it not only slashed its earnings outlook, but announced it would fire a record 10,000.
- Putting CAT’s result in context, the Great Financial Crisis resulted in 19 consecutive months of sales declines. We are currently at 34 months and showing no signs of any pick up.
- Source: zerohedge.com
- the middle class in America is dying. According to brand new numbers that were just released by the Social Security Administration, 51 percent of all workers in the United States make less than $30,000 a year. You can’t support a middle class family in America today on just $2,500 a month – especially after taxes are taken out. more than half of all workers in this country make less than that each month. In order to have a thriving middle class, you have got to have an economy that produces lots of middle class jobs, and that simply is not happening in America today.
- -38 percent of all American workers made less than $20,000 last year.
- -51 percent of all American workers made less than $30,000 last year.
- -62 percent of all American workers made less than $40,000 last year.
- -71 percent of all American workers made less than $50,000 last year.
- The federal poverty level for a family of five is $28,410, and yet almost 40 percent of all American workers do not even bring in $20,000 a year.
- If you worked a full-time job at $10 an hour all year long with two weeks off, you would make approximately $20,000.
Credit Suisse estimates that 25% of Americans are in this situation of having a negative net-worth.
“If you’ve no debts and have $10 in your pocket you have more wealth than 25% of Americans. More than 25% of Americans have collectively that is.”
- Here are reasons why all the people that quit prepping after September are dead wrong…
- #1 U.S. exports are down 11 percent for the year so far. The only other times they have fallen this dramatically since the turn of the century were during the last two recessions.
- #2 Since March, the amount of stuff being shipped by truck, rail and air inside the United States has been falling every single month on a year over year basis. This is a clear indication that economic activity is really slowing down.
- #3 Wholesale sales in the U.S. have fallen to the lowest level since the last recession.
- #4 The inventory to sales ratio has risen to the highest level since the last recession. This means that there is a whole lot of unsold inventory that is just sitting around out there and not selling.
- #5 Industrial production declined for five months in a row during the first half of 2015. That is something that has never happened outside of a recession.
- #8 there are 102.6 million working age Americans that do not even have a job of any kind.
- #9 According to Challenger Gray, layoffs at major firms have risen to the highest level that we have witnessed since 2009.
- #10 The number of job openings in the United States declined by 5.3 percent during the month of August. That was a huge plunge for just one month.
- #18 Since the last financial crisis, the global economy has added another 50 trillion dollars to our colossal pile of debt. That means we are far more vulnerable to a crisis than we were the last time around.
- #19 The list of global financial giants that are rumored to be in very serious trouble includes Deutsche Bank (the biggest bank in Germany), UBS (the biggest bank in Switzerland) and three of the largest commodity trading firms on the entire planet: Glencore, Trafigura and the Noble Group. The total collapse of any one of them would easily be another “Lehman Brothers moment” for the global financial system.
- #20 Stocks are still in a massive bubble. In fact, stocks in the U.S. are going to have to fall more than 30 percent from the current levels just to get back to what is considered “normal” or “average”.
- banks themselves are pushing back on the Fed, and signalling that thanks to the trillions in fungible QE liquidity, they don’t care if the Fed hikes rates, as they are now proactively seeking to purge deposits from their balance sheets.
U.S. banks are going to new lengths to ward off a surprising threat to their financial health: big cash deposits.
State Street Corp., the Boston bank that manages assets for institutional investors, for the first time has begun charging some customers for large dollar deposits, people familiar with the matter said. J.P. Morgan Chase & Co., the nation’s largest bank by assets, has cut unwanted deposits by more than $150 billion this year, in part by charging fees.
The developments underscore a deepening conflict over cash.
Finalized last September and overseen by the Federal Reserve and other regulators, the rule involving the liquidity coverage ratio forces banks to hold high-quality liquid assets, such as central bank reserves and government debt, to cover projected deposit losses over 30 days. Banks must hold reserves of as much as 40% against certain corporate deposits and as much as 100% against some deposits from hedge funds.
- Yes, that’s right, banks are forced to hold either Fed reserves or USTs to guard against the dangers associated with…cash.
- That sounds strange on the surface, but it all comes back to the fact that fractional reserve banking is just one giant ponzi scheme.
- Meanwhile, the Saudis are struggling to cope with the plunge in crude prices that they themselves engineered
- Moscow is wrestling with crippling Western economic sanctions and building closer ties with Beijing is key to mitigating the pain. Part of the cooperation Russia seeks revolves around energy partnerships and while the Western media has endeavored to play down the arrangements
- Russia overtook Saudi Arabia as the number one supplier of crude to China.
- If the Saudis were to continue to lose market share in China, that dynamic would be amplified. Russia has surpassed Saudi Arabia as the top crude supplier to China.
- the most important thing to remember when considering all of the above is that from the start of 2015, Gazprom began settling all crude sales to China in renminbi.
- both the sides discussed Iranian energy development issues.
- The People’s Bank of China (PBOC) has issued its first offshore yuan bonds in London. The bonds are expected to raise $787 million (5 billion yuan), offer an interest rate of 3.1 percent and mature in 2016.
- It’s the first time Chinese government notes have been issued outside China, PBOC said. The move is expected to help the yuan explore the offshore currency market and facilitate cross-border trade and investment.
- “This strategic move demonstrates the clear commitment by the Chinese authorities to grow the offshore bond market and the confidence in the City of London as a leading renminbi hub for future activities,”
- Apple has reaffirmed its promise not to bake encryption “back doors” into its products. The decision marks a victory for privacy advocates and a rejection of the government’s goal of obtaining encryption keys.
- “We think encryption is a must in today’s world. No back door is a must,” Cook
- “Do we want our nation to be secure? Of course,” said Cook. “No one should have to decide between privacy or security. We should be smart enough to do both. Both of these things are essentially part of the Constitution.”
- FBI Director James Comey announced at a Senate hearing that the Obama Administration would not seek legislation seeking back doors, and instead declared that authorities would “continue conversations with industry.”
- Cook acknowledged that a back door wouldn’t be so bad if it only exposed “bad people,” but he warned that“you can’t have a back door that’s only for the good guys.”
- “This is not the world. And so what I’m convinced of is that it’s in everyone’s best interest that everybody is blocked out,” he added.
- revealed the DCGS (Distributed Common Ground System )was down during the recent attack on the Doctors Without Borders (MSF) hospital in Kunduz.
- newly crowned elected Canadian Prime Minister Justin Trudeau wasted no time, he has told US President Obama that he will withdraw Canadian fighter jets from Syria and Iraq, though giving no timeline.
While Canada remains “a strong member of the coalition against ISIL,” Trudeau said he made clear to the US leader “the commitments I have made around ending the combat mission.”
During the campaign, Trudeau pledged to bring home the fighter jets and end its combat mission.
- “We have stood shoulder to shoulder with Canadian armed forces…in Iraq and Afghanistan,”
- Iraq’s ruling alliance has written to the country’s prime minister, requesting Russian help in the fight against ISIS terrorists.
- Al-Matlabi pointed to information received from US sources, which stated that 75 percent of American warplanes returned to base without firing their weapons against ISIS targets, while Washington has not been forthcoming in living up to its promises.
- Syrian President Bashar al-Assad held talks in Moscow with President Vladimir Putin on Tuesday in his first known foreign visit since the civil war erupted in 2011
- Sergei Karaganov, dean of the Faculty of World Economy and International Affairs at Moscow’s Higher School of Economics,said the following
- “The message to the world is that Russia solves problems and you don’t. If you want to solve problems, work with us.”
- Russian diplomats have already had meetings with representatives of the Syrian opposition in different formats.
- Moscow is ready to welcome other countries into the existing dialogue between Russia and Syria on the crisis in the Middle Eastern country,
- The Islamic State (IS) terrorist group is in talks with other terrorist groups on unification against the Syrian government forces,
- “The communications reconnaissance data suggest that the commanders of several large units of the Al-Nusra terrorist group have started negotiations with the Islamic State commanders on the unification of forces for containing the advancing Syrian government troops,
- “on October 19, intercepted radio exchanges provided information about the planned gathering of the leaders of armed groups” operating in the area of Sarmin.
- The US Navy says it has successfully tested its anti-missile defense system during an exercise in Europe, when anti-ship cruise missiles fired from the Scottish coast were shot down by a pair of guided interceptors with the help of tracking from allied ships.
- The exercises on Tuesday involved the US Navy and its European allies. A Dutch ship tracked the target and relayed targeting information about the missile to the US naval ship, the USS Ross. A guided missile interceptor built by Raytheon was then fired on the dummy target from the Ross.
- “This was the first time a Standard Missile-3 ,A guided interceptor was fired on a non-US range and the first intercept of a ballistic missile threat in the European theater,”
- Ferguson said the test, carried out by the Maritime Theater Missile Defense Forum, demonstrated the group’s ability to “safely conduct effective coalition sea-based defense against simultaneous anti-ship and ballistic missile threats.”
- “It is great timing because it demonstrates our capability to track and intercept the kind of missiles that are being fired in and against Syria,”
- Ellison did not indicate where the threats to the US might be coming from.
- The US has denied that its program is aimed at Moscow.
- More than 35,000 troops are participating in NATO’s month-long Trident Juncture war games, along with some 140 warplanes and 60 warships. The militaries of 30 different capitalist governments aligned with the NATO alliance are involved.
- Massive NATO drills are taking place in Italy, Spain and Portugal. The drills are designed to prepare the NATO powers for large-scale strategic warfare outside the boundaries of the NATO countries
- The main focus of the NATO drills is to prepare for comprehensive strategic warfare spanning broad stretches of the Eurasian landmass
- The exercises are emphasizing large-scale maneuver warfare to a degree not seen since the dissolution of the Soviet Union, but will also include training in hybrid warfare.
- Trident Juncture “sends a very clear message to any potential aggressor,” NATO’s commander, American General Philip Breedlove, said. “Any attempt to violate the sovereignty of one NATO nation will result in the decisive military engagement of all NATO nations.”
- The intensity of the NATO war games is an expression of the fact that a general war in Europe is now viewed as possible, even likely, by leading factions of the Western militaries. .
- The US Federal Bureau of Investigations (FBI) and the Department of Homeland Security have detained some 70 persons related to the Islamic State (ISIL) terrorist group, US House Committee on Homeland Security Chairman Michael McCaul announced on today
- No crime was committed, no really part of the IS, no wrong doing, why were they arrested?
- FBI Director James Comey says federal law enforcement has seen far fewer Americans try to travel abroad to join the Islamic State in recent months.
- He said he wasn’t sure how to explain the drop, but said one factor may be the efforts the FBI has made in the last year to try to stop the flow.