- Europe needs “brave banks” willing to conquer new territory.
- The biggest financial problem in Europe these days is that it is “over-banked,” according to Daniele Nouy, Chair of the ECB’s Supervisory Board, and thus in charge of the Single Supervisory Mechanism, which regulates the largest 130 European banks.
- In a speech bizarrely titled “Too Much of a Good Thing: The Need for Consolidation in the European Banking Sector,” Nouy blamed fierce competition for squeezing profits for many of Europe’s banks while steadfastly ignoring the much larger role in the profit squeeze played by the ECB’s negative-interest-rate policy. ECB President Mario Draghi agrees.
Read more at:ECB Wants to Weed Out Smaller Banks To Take Total Control
- Japan is a global leader is how to gracefully manage stagnation.
- In our pay-to-play centralized form of governance, any reform that threatens the skims, privileges and perquisites of existing elites and fiefdoms is immediately squashed, co-opted or watered down.Although our leadership is too polite to say it out loud, they’ve embraced stagnation as the new quasi-official policy. The reason is tragi-comically obvious: any real reform would threaten the income streams gushing into untouchably powerful self-serving elites and fiefdoms.
- So the power structure of the status quo has embraced stagnation as a comfortable (except to those on the margins) and controllable descent that avoids the unpleasantness and uncertainty of crisis. We all know that humans quickly habituate to gradual changes in circumstances, and that if the changes are gradual enough, we have difficulty even noticing the erosion.
Read more at:Stagnation Is Not Just the New Normal–It’s Official Policy
- There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.
- One chart defines the 21st century economy and thus its socio-political system: the chart of soaring wealth/income inequality. This chart doesn’t show a modest widening in the gap between the super-wealthy (top 1/10th of 1%) and everyone else: there is a veritable Grand Canyon between the super-wealthy and everyone else, a gap that is recent in origin.
Read more at:This Chart Defines the 21st Century Economy
- We are seeing now in regard to North Korea a replay of the type of campaign the deep state and the media used in 2001 through 2003 to stir up the American people to support the invasion of Iraq.
- The Ron Paul Institute’s Adam Dick writes that this is the assessment of former United States House of Representatives member and presidential candidate Ron Paul in a Tuesday interview with Alex Jones on the Alex Jones Show.
- In the interview focused on US foreign policy and, in particular, relations between the US and North Korea, Paul declared:
Read more at:Ron Paul Fears False Flag Looms, Urges Americans To Resist Deep State Push For War On North Korea
- Looking at the global political landscape over the last month, two trends are becoming more apparent.
- The infamous military and economic power at America’s disposal is declining,
- whereas in the multipolar field, an acceleration has occurred in the creation of a series of infrastructures, mechanisms and procedures to contain and limit the negative effects of America’s declining unipolar moment.
- This series of three articles will focus firstly on the military aspect of these ongoing changes, then the economics at play, and finally, how and why smaller countries are transitioning from the unipolar camp to the multipolar field.
Read more at:A Failing Empire, Part 1: Russia & China’s Military Strategy To Contain The US
- When the price of oil rises to the point of pain, just remember the handy-dandy discount mechanism: a much stronger US dollar.
- Glance at this chart of the trade-weighted U.S. dollar, and note the swing highs and lows in the price of oil per barrel around each peak and trough. You can look up historical inflation-adjusted prices of oil in USD on this handy chart: Crude Oil Prices – 70 Year Historical Chart (macrotrends.net)
- Conversely, when the USD weakens, its purchasing power declines and it takes more USD to buy an imported barrel of oil.The correlation isn’t perfect, of course. Oil was relatively cheap between 1986 and 2003, due to a relative abundance of supply as Saudi Arabia and new fields ramped up production, with two periods of extreme price action: a brief spike higher in 1990 preceding the First Gulf War, and a collapse to $17 in the 1998 Asian Contagion financial crisis.
- Hottest segment cools. Harvey and Irma Won’t End Carmageddon.
- For the first eight months of the year, car sales by GM and Ford plunged 19%. Industry car sales fell 11%, despite record incentives. Sales of trucks – pickups, SUVs, crossovers, and vans – have been the big hope. Total truck sales are up 3% for the year, reducing the overall sales decline to 3%. Particularly crossovers have been red-hot. Every manufacturer has jumped into this booming segment. They’ve been the big hope. But now, even that hope is fading.
- “Although crossovers now make up a larger share of the automotive industry, overall volumes are moderating,” General Motors told employees in a layoff notice at its Spring Hill, Tenn., assembly plant that makes the GMC Acadia and Cadillac XT5. These crossover models are among the very vehicles GM is counting on to pull it out of its sales funk.
Read more at:GM Cuts Entire Shift at Factory for Crossovers, Laments “Moderating” Sales, Layoffs not Temporary