Existing home sales, new home sales all decline, now housing starts decline, the worst since 2009. The NY Fed has lowered its estimate of the GDP and the Atlanta Fed is doing the same. This economic indicator has been right 7 times in a row and now we are approaching another instance where this indicator is going to invert. If it does the US economy and the world economy will collapse on schedule. The economy is breaking down at an extraordinary pace, and the Fed is pushing has hard as they possibly can to bring it down. The elite are now pushing the agenda to get Trump anyway they can, it doesn’t matter if the stories are true or not, they want him out. US and China will be meeting to discuss the North Korean issue. The Philippines report that the terrorist groups are so degraded they do not believe they will mount another attack. The corporate media is reporting that Trump is pushing 4,000 troops into Afghanistan, the entire strategy is not what everyone thinks, its to hunt down the elite. Lavrov reports that the missile system the deep state moved into Syria makes no sense because the IS is not in the area.
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 – 06.16.2017
- For the first time since Jan 09, Housing Starts dropped for the 3rd month in a row in May, drastically missing expectations (-5.5% vs +4.1% exp.) Building Permits also tumbled in May and massively missed expectations
- . This is the lowest level for overall housing starts since September 2016.
- Thanks to the collapse in housing data this morning, The New York Fed has slashed its growth expectations for Q2 GDP to just 1.86% (from 3% in March)…
- NOTE – the factors weakening the forecast are ‘hard’ data points (red squares) while the surveys are adding to GDP.
- It is hardly surprising that both The Atlanta Fed (which cut its guess from 3.2% to a series low 2.878%)
- If something happens seven times in a row, do you think that there is a pretty good chance that it will happen the eighth time too? Immediately prior to the last seven recessions, we have seen an inverted yield curve, and it looks like it is about to happen again for the very first time since the last financial crisis. For those of you that are not familiar with this terminology, when we are talking about a yield curve we are typically talking about the spread between two-year and ten-year U.S. Treasury bond yields. Normally, long-term rates are higher than short-term rates, but when investors get spooked about the economy this can reverse. Just before every single recession since 1960 the yield curve has “inverted”, and now we are getting dangerously close to it happening again for the first time in a decade.
- On Thursday, the spread between two-year and ten-year Treasuries dropped to just 79 basis points. this is almost the tightest that the yield curve has been since 2007…
- So why is an inverted yield curve such a big event?
An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 1960’s, occurs when short-term interest rates yield more than longer-term rates. Why is an inverted yield curve so crucial in determining the direction of markets and the economy? Because when bank assets (longer-duration loans) generate less income than bank liabilities (short-term deposits), the incentive to make new loans dries up along with the money supply. And when asset bubbles are starved of that monetary fuel they burst. The severity of the recession depends on the intensity of the asset bubbles in existence prior to the inversion.
- What is truly alarming is that the Federal Reserve can see what is happening to the yield curve, and they can see all of the other indications that the economy is slowing down, but they decided to raise rates anyway.
- Raising rates in a slowing economy is a recipe for disaster, but the Fed has gone beyond that and has declared that it intends to start unwinding the 4.5 trillion dollars of assets that have accumulated on the Fed’s balance sheet.
- And if you thought that the last recession was bad for average American families, wait until you see what happens this time around.
- There have been 18 distinct recessions or depressions since the Federal Reserve was created in 1913, and if we finally want to get off of this economic roller coaster for good we need to abolish the Federal Reserve.
- President Trump’s latest twitter target seems to be his own Deputy Attorney General Rod Rosenstein who he blasts for the hiring of a Special Counsel to investigate the firing of former FBI Director James Comey, after writing a letter himself explicitly calling for the firing of James Comey
Republican Party is calling upon the ‘Special Counsel’ to look into Hillary’s email scandal, something that should have been done long ago, and not for retaliatory reasons but simply due to Comey’s and AG Lynch’s blatant mishandling of the investigation
- Comey’s testimony in which he confirms that Lynch “directed” him to refer to the Hillary email case as a “matter” rather than an ‘investigation”…not to mention that ill-advised meeting with Bill Clinton on the Phoenix tarmac just days before the Justice Department was set to announce the results of their investigation.
- U.S. and Chinese diplomatic and defense chiefs will meet Wednesday for a security dialogue that Washington says will focus on curbing North Korea’s nuclear and missile programs.
- The talks in Washington will involve U.S. Secretary of State Rex Tillerson and Secretary of Defense Jim Mattis, as well as China’s top diplomat, State Councilor Yang Jiechi, and General Fang Fenghui, chief of state of the People’s Liberation Army, the U.S. State Department said.
- according to AP, the Pentagon will send 4,000 additional American forces to Afghanistan to support existing forces and in hopes of breaking a stalemate in a war that has now been passed on to a third U.S. President.
- The Pentagon is pushing back against reports that Defense Secretary Jim Mattis has decided to dispatch 4,000 additional U.S. troops to Afghanistan, insisting no decision has been made pending consultations with other government agencies and allies.
- “Secretary Mattis has made no decisions on a troop increase for Afghanistan,” the Defense Department said in a statement Friday. “
- .Brigadier General Restituto Padilla said security has been tightened in nearby cities the Islamic State-linked militants occupying the city of Marawi are “too degraded” to launch further attacks,
- In case there was any doubt, U.S. Secretary of State Rex Tillerson has just confirmed that official U.S. policy towards Iran includes regime change, Think Progress reports.
- During a Wednesday hearing before the House Foreign Affairs Committee regarding the 2018 State Department budget, Tillerson was asked whether or not the U.S. supports regime change in Iran. He replied affirmatively, stating that U.S. policy is driven by relying on “elements inside of Iran” to bring about a “peaceful transition of that government.”
- So is the U.S. position to leave things as they are or set up a peaceful long-term regime change?”
- “Well our Iranian policy is under development,” Tillerson replied.
- The US deployment of multiple rocket launchers in southern Syria may be intended to cut off Syrian government troops from allies in Iraq, since there are no Islamic State militants in the region to target with the weapons, Russian Foreign Minister Sergey Lavrov said.
- “If these conclusions are true, one can only regret that the task of creating a single front of relentless fight against terrorism not affected by double standards is being substituted by yet another attempt at geopolitical maneuvering, which abuses confessional differences within Islam,” Lavrov added.
- A Russian airstrike allegedly killed ISIS leader Abu Bakr Al-Baghdadi south of Raqqa, the Russian Defense Ministry said on Friday.
- The verification is ongoing.
- Russian Foreign Minister Sergey Lavrov also said that the report still has to be confirmed.