Illinois is in trouble, this is not a false alarm, the state does not have the funds to pay out and road work is going to stop, once this happens other services will discontinue. The wealthiest in America will control 70% of the wealth, but its all on paper. Corporate media is now reporting that the economy might be headed for a recession, with article that state that the economy looks very similar to the tech bubble in 1999. Central banks are pushing investors and everyday people into crytocurrencies. The Feds move to raise interest rates are political and make no economic sense. The ECB is preparing bail-ins across Europe. A new bill was introduced to setup a Russian response center to provoke the Russians. Congress is now looking into the failed coup attempt in Montenegro. Iraqi troops regain control of the border. Russian and Syrian forces liberating more towns and hitting the rest of the IS oil convoys. Europol warns that attacks could happen at anytime that the IS has the ability to carry out terror. The elite are running out of options and the only options left will not end well for the rest of us.
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Current News – 06.18.2017
- Last week we reported that as Illinois, a state which now faces over $15 billion in backlogged bills, struggles over the next two weeks to somehow come up with its first budget in three years ahead of a June 30 fiscal year end, and faces an imminent ratings downgrade to junk – the first ever in US state history –
- As reported previously, the state Transportation Department said it would stop roadwork by July 1 if Illinois entered its third consecutive fiscal year without a budget – tFor now, state workers have continued to receive pay because of court orders, but school districts, colleges and medical and social service providers are under increasing strain.
- “I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,” said Mendoza, a Chicago Democrat.
- “The magic tricks run out after a while, and that’s where we’re at.”
- the gulf between the world’s wealthy elite – those 18 million households worldwide with more than $1 million in assets – and everybody else is rapidly widening.
- According to a new study by Boston Consulting Group via Bloomberg, these households – with a total head count of roughly 70 million people, or about 1% of the world’s population – control 45 percent of the $166.5 trillion in wealth. By 2021, they will control more than half, suggesting that, while wealth inequality in the rest of the world is simply accelerating, in America, it’s gone into overdrive. Right now, 63 percent of America’s private wealth in the hands of U.S. millionaires and billionaires, BCG said. By 2021, their share of the nation’s wealth will rise to an estimated 70 percent.
- In its report, BCG puts the global rate of wealth creation in 2015 and 2016 at 5.3 percent, though the consulting firm expects it to accelerate to about 6 percent annually for the next five years. Those gains will accrue almost exclusively to the wealthiest Americans, while wealth held by everyone else is just barely growing.
- Of course, there’s a caveat: In America, most of these gains exist only on paper. More than 70% of new wealth creation is derived from the rising value of rich investors’ portfolios.
- Meanwhile, according to the Federal Reserve’s latest survey of household economics and decisionmaking, a quarter of American adults can’t pay all their monthly bills, and 44% have less than $400 cash on hand in case of an emergency.
- There are four economic indicators that show remarkable similarities to 1999, the year before the dot-com bubble burst and stocks were plunged into a bear market,
- A key predictor of the health of the American economy is inching closer to signaling a recession.
- The indicator in question is the US Treasury yield curve,
- A flattening one suggests a slowing one. That’s what’s occurring now.
- The reaction of the cryptomarket to the Federal Reserve announcement provides evidence that cryptocurrencies are seen as a safe-haven investment during times of significant fiat currency dilution.
- Reacting to Fed Policy
- However, if the Fed continues to raise rates, then the demand for cryptocurrency may decrease. When the Fed closes the faucet on newly printed money, there is less newly printed money that can flow into asset classes such as real estate, stocks, and cryptocurrencies, etc. Therefore, investors will have less demand for assets that hedge against inflation.
- Negative interest rates in Europe and fiat demonetization in developing countries are still driving demand for Bitcoin and alternative cryptocurrencies. Although Bitcoin was initially ridiculed as money for computer nerds and a conduit for illegal activity, investors are beginning to see the potential for this technology to be an integral part of wealth management from the perspective of portfolio diversification.
- The Federal Reserve is joining the Deep State, the Fed voted to raise the benchmark interest rate again by another one-quarter of a percent – the third rate increase this year – and indicated that they may raise it yet again before year’s end.
The biggest immediate impact of the rate rises is it will tend to slow the housing market – a market crippled in 2008 – that has only lurched back to life last year. But the latest figures show US housing starts are now down 5.5% – having fallen for the last 3 months – the very months when they should be rising.
the Fed isn’t sure why inflation is staying so low – but it is going to raise rates anyway, risking a recession.the only logical reason for the Fed’s rate raising policy is – sadly – a political one.
- In a speech to the Italian Banking Association on Thursday, the Vice President of the ECB, Vítor Constâncio, suggested that under certain circumstances, it might be wiser to save a bank than to resolve it. What’s more, taxpayers should be called upon not only to save banks like MPS but also to make whole all holders of the bank’s subordinate debt, under the pretext that they were misled into purchasing them (as indeed some retail customers, but certainly not all, were).
Source: wolfstreet.com – By Don Quijones.
- Rep. Joe Kennedy introduced a bill to fight back against ‘russian meddling’ that will establish a ‘National Russian Threat Response Center’,
- The bill is designed to amend the National Security Act of 1947, which would be dedicated to Russian and under the auspices of the DNI. It will commingle officers from the State Department, HLS, Treasury, the CIA, and the Pentagon.
“The Center will be responsible for synchronizing and analyzing information pertaining to Russia from across the intelligence community, diplomatic channels and law enforcement agencies,” Mr. Kennedy’s office said. “Using its broad view across the U.S. Government, the Center will develop policy recommendations and identify gaps in the current collection and collation of intelligence pertaining to Russia.”
- The bill’s aim, heralded by Kennedy and seven other democratic sponsors, is to disrupt Russian hackers before the elections happen.
- he US Congress is trying to find out whether a former operative of the US Central Intelligence Agency (CIA) was engaged in the Montenegro failed coup attempt that took place on October 16, 2016, the general election day, local media reported Friday, citing congressional officials.
- Former CIA officer Joseph Assad visited Montenegro a few days prior to the allegedly Russia-plotted coup attempt and was suspected of assisting the coup organizers in leaving the country in the aftermath, The Wall Street Journal reported.
- The Western states, including the United States and Montenegro put the blame for plotting the coup attempt on Russia, without bringing any evidence of that. Moscow has repeatedly refuted the allegations with the Foreign Ministry regarding the claims as aimed at discrediting Russia.
- The Iraqi government forces have regained control of the strategically important al-Waleed checkpoint on the border with Syria,
- Al-Waleed is located near the Syrian border crossing of At-Tanf, which serves as a base for US-backed opposition militants. This sector houses the strategically important Syrian-Iraqi-Jordanian triangle, where the borders of the three states cross.
- the third crossing on the border between Iraq and Syria, liberated from the Islamic State (a terrorist group, outlawed in Russia).
- The Russian Defense Ministry said Saturday that the Russian warplanes have foiled a massive Daesh attack on the Syrian city of Deir ez-Zor earlier in June.According to the Russian Defense Ministry,
- Russian warplanes have eliminated two top Daesh field commanders and some 180 terrorists in Syria during aerial operations on June 6 and 8.Moreover,
- The Russian and Syrian air forces have been relentless in central Syria, today, hunting down oil tankers belonging to the Islamic State (ISIL) terror organization.
- Since Saturday morning, Syrian Air Force is intensively pounding ISIS positions all over the country.In the countryside of Palmyra, ISIS movements and supply routes were targeted east of Arak gas field,
- Foreign ministers of BRICS countries (Brazil, Russia, India, China and South Africa) will discuss efforts to resolve international conflicts in the Middle East and Africa at the meeting in Beijing on June 18-19, Russia’s Foreign Ministry said.
- Europol has warned that Islamic State has no lack of volunteers, who are often literate and increasingly include women and children ready to carry out attacks in the West, where 10 of 13 terrorist plots successfully hit their targets in 2016 Terrorist plots are being organized by both “remotely directed individuals” who are able to operate alone or in small groups, and non-directed lone-wolf terrorists inspired by Islamist propaganda.