The EU is getting worried about the debt problem. The tax payers in Dallas are going to bailout the pensions. The everyday American is pumping up the real estate market. Fed’s national index drops signalling we are in a recession. Bundesbank prepares for record losses. UBS warns of credit crisis coming soon. Steve Mnunchin dropped a truth bomb, the economy is going to take more than 2 years to grow. Mexico prepares to ditch US corn imports. DHS begins deportation but they are not using an army. Infowars and NaturalNews have been hit by Google, the deep state is slowly getting rid of the alternative media. Other reports show views on YouTube have been slowly removed. NK wants the body but Malaysia wants a DNA test first. Trump orders CIA to stop funding the moderate rebels. McCain makes a secret visit to Syria, to get everything ready for the next big event. The deep state is preparing to make their move, they all ready started, this is going to escalate as we move into spring.
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Current News – 02.23.2017
- Debt is not just an American or Chinese problem. The EU is equally mortified with debt and the problem is not just in Greece. As per the Maastricht Treaty, the countries EU states cannot have debt more than 60% of their GDPs. Currently, the situation is nowhere close to this ideal as 21 countries have passed this limit and 5 have more debt than their GDP. The situation is serious with Greece, where the debt is 177 percent of the GDP.
- While the world is focusing on Greece’s extreme debt crisis, Italy and Portugal easily miss the spotlight despite having high public debts. Italy’s debt is 132 percent of its GDP while Portugal’s debt is 129 percent of its GDP. Cyprus, Spain, Belgium, France, Ireland, and Austria are also higher than the Euro area average.
- United Kingdom also falls in this category with debt standing at 89.1% of the GDP.
- For the past several months we’ve warned that the taxpayers of the City of Dallas, despite all of the tough talk coming out of their elected city council members, would ultimately be forced to bail out the failing Dallas Police and Fire Pension (DPFP) system. And just last night the DPFP board voted 9-0 to approve a plan that would do just that.
- The plan to save the DPFP was proposed by Dan Flynn, chair of the pensions committee in the Texas House of Representatives, and calls for Dallas taxpayers to contribute 34.5% of police and firefighter salaries each year into the failing pension system, up from 27% in 2015, plus an incremental $11 million per year. In total, the adopted plan will cost Dallas taxpayers an extra $22 million per year.
- joint white paper by ATTOM and Clear Capital, titled “Landlord Land,” that analyzes who is behind the US housing boom that drove home prices to new all-time highs, and in many markets far beyond the prior crazy bubble highs – even as homeownership has plunged and remains near its 50-year low.
- First-time buyers are the crux to a healthy housing market, but they aren’t buying with enough enthusiasm. In 2012, buyers with FHA-insured mortgages – “who are typically first-time homebuyers with a low down payment,” according to the report – accounted for 25% of all home purchases. In 2013, their share dropped to about 20%, in 2014 to 18%.
- who then is buying? Who is driving this housing market?
- Institutional investors? they include the largest buy-to-rent Wall Street landlords, some with over 40,000 single-family homes, who’ve “picked up the low-hanging fruit of distressed properties available at a discount between 2009 and 2013,” a
- But as institutional investors stepped back, smaller investors jumped into the fray in large numbers,
- So when the industry tells us about low inventories and strong demand in the housing market, it’s good to remember where a record 37% of that demand in 2016 came from: investors, most of them smaller investors. And when the financial equation no longer works for them, they’ll pull back, just like institutional investors have already done.
- In what are now deemed the most expensive multifamily rental markets in the world – San Francisco and New York City – the commercial property bubble is already deflating.
- The Fed’s National Activity Index dropped in January and missed expectations as 49 of the 85 subcomponents deteriorated.
- The Chicago Fed national index, which draws on 85 economic indicators, was minus 0.05 in January versus 0.18 in December.
- Germany’s central bank reported its smallest profit in more than a decade in 2016 after setting aside a record amount of provisions against future losses on the bonds it is buying as part of the ECB’s stimulus program,
- More troubling for holders of European bonds, the Bundesbank increased its provisions for bond losses to €21.9 billion from €19.6 billion a year earlier, a harbinger of what is to come once the ECB starts pulling its foot off the pedal.
- And so the Bundesbank is trapped: permit Draghi to keep doing what he is doing and avoid losses, or demand action against the sudden spike in European inflation and suffer what even it now admits will be record MTM losses on bond holdings as rates start creeping higher.
- One month later, that is what UBS’ Arend Kapteyn discovered when in a report published overnight, the Swiss bank economist reported that the most important variable when it comes to global economic expansion (and alternatively, contraction) has just turned negative for the first time in three years.
- In the note, UBS writes that “Our global credit impulse (covering 77% of global GDP) has suddenly collapsed” and explains that “as the chart below shows the ‘global’ credit impulse over the last 18 months is essentially mainly China ( Chinese banks could not sustain the recent extraordinary pace of credit acceleration.
- , when it comes to the global credit impulse, it was, is and will be all about China: without a massive surge in debt creation over and above the prior year, and thus a boost to annual impulse, the global economy virtually always rolls over.
- The bottom line: absent a new, and even more gargantuan credit expansion by Beijing – which is not likely to happen at a time when every single day China warns about cutting back on shadow banking and loan growth – the so-called recovery is now assured of fading. It is just a matter of time.
- Treasury Secretary Steve Mnuchin pouring ice-cold water on the market’s mania.
- Since Trump was elected November 8th 2016, the market has gone almost straight up on the notion that an economic utopia has arrived and that GDP growth of 5%
- Mnunchin stated point blank that the Trump administration HOPES to implement tax reform by August.
- Not two weeks from now. Not even two months from now. But AUGUST.
- And that is their hope, not a hard deadline.
- Then Mnunchin announced that there was “not much administration can do to affect growth in short term”.
- Wait, what?
- For weeks we’ve been told by the financial media that 5% GDP growth is just around the corner… that the US has already entered an economic utopia… and that stocks are correct to be rallying to all –time highs based on this belief.
- Consider the following headlines:
· Americans brimming with optimism on the economy (The Hill)
· Investors’ Economic Optimism Surges to Level Not Seen Since 2011 (Bloomberg)
· US stocks are at all-time highs (Business Insider)
- Trump’s #1 econ guy stated POINT BLANK that the administration cannot juice growth in the short-term. He also stated that GDP growth of 3% or 4% is “achievable” but it will take “two years.”
- This is the sort environment in which Crashes can happen.
- this environment is more conducive to Black Swan events than any other in the last seven years.
- Mexico, the single largest importer of U.S.-grown corn, has announced plans to find alternative grain sources in South America. Per Bloomberg:
- examining countries such as Brazil and Argentina to add new sources for soy, corn and wheat,
“The renegotiation might bring increased costs to imports, and our own exports might be hurt, so we need to find new markets,”
- Of course, any move by Mexican businesses to import raw materials from other countries could hit U.S. farmers hard. Mexico is the largest buyer of U.S.-produced corn,
- Real farm incomes in 2017 are expected to sink below 2010 levels which represents a 36% decline from the recent peak and a 14% decline since 2015.
- Meanwhile farm debt continues to rise at an astonishing rate…
- Homeland Security Secretary John Kelly visited Guatemala to explain that while the Trump administration is not planning mass deportations, any Guatemalans considering entering the US illegally should not bother.
- Robert Reich, a professor at UC Berkeley and former U.S. Secretary of Labor, has insinuated that President Donald Trump incited Monday’s riots in Sweden —
- “48 hrs after his comments on Sweden, riots broke out in an immigrant community.” His statement refers to President Trump’s comments at a Florida rally this weekend, describing problems in the European country due to heavy migration from Muslim-majority nations:
- Reich, 70, has since deleted the tweet — after a wave of more lucid users found and mocked his theory.
- Project Veritas, led by James O’Keefe, and who is most notably known for “stings” on corrupt organizations, has set his targets on the Mainstream Media in 2017 and his first victim has just been announced: CNN.
- O’Keefe has stated that he has “hundreds of hours” of raw footage and voice audio from within CNN, leaked by an employee who is obviously greatly displeased with his employer and the stance that they have taken in the journalist world.
- if the past is any indication of what is to come, then the information is going to be crippling to CNN, as all past leaks released by Project Veritas have blown the subject of their focus out of the water
- Alex Jones’ and Mike Adams’ are both under attack.
- Infowars has been dropped by its ad platform provider — adroll.com, which spreads ads for Infowars products to many, many media outlets. Last year, that ad operation accounted for more than $3 million in sales for Infowars.
- Natural News has been “delisted” by Google. Google appears to have wiped out 140,000 pages of listings for Mike’s website. I just typed in “natural news” at Google and what came up was something different, — another tiny site owned by Mike, not , as the top listing.
- The Empire is striking back. This isn’t debate or discussion or even baseless accusation. This is war by attrition. And censorship.
- This is part of the elite mantra: if we don’t like it, wipe it out.
- It’s taken a new turn. They want to take down key independent media outlets.
- They want to narrow down the “information superhighway” to a one-lane road that runs directly into their headquarters, where all the big-time fake news is dispensed, every day, to the hypnotized masses.
- As soon as Trump became the President-elect, sales of George Orwell’s book 1984 surged to the top of Amazon Best Sellers where it has remained for the last couple months.
- However, if they read carefully enough, they’ll realize that temporary leaders of “Big Brother” merely continue the machinery of the State.
- Your computer, smartphone, car, smart TV and appliances, and credit cards didn’t just start spying on you when Donald Trump became president. They were put in place by Big Brother over decades, and they will continue to expand under Trump because he’s continuing the manufactured war on terror.
- As we learned in 1984, all of the tyrannical measures of control are justified by convincing the people that they’re perpetually fighting a dangerous enemy:
- The government’s commitment to “overcome encryption” due to national security would seem to dovetail nicely with Trump’s Executive Order of January 27th, which went far beyond the controversy of “bans” placed on certain countries. In fact, it is something that will affect all travelers into the U.S. and easily could trickle down into the everyday lives of Americans. According to Section 7 of that order, Homeland Security is directed to implement biometric registration and databasing of all who enter.
- “Malaysia is obliged to hand his body to the DPRK [North Korea] side as it made an autopsy and forensic examination of it in an illegal and immoral manner”, the North’s jurists committee said, in comments carried by the state-run news agency.Malaysia has not released the corpse “under the absurd pretext” that it needs a DNA sample from the dead man’s family, it said.
- Throughout its lengthy dispatch, KCNA avoided any reference to the dead man’s identity, calling him only “a citizen of the DPRK bearing a diplomatic passport”.
- South Korea is reportedly using giant loudspeakers to blast news of Kim’s dramatic assassination across the border with its reclusive northern neighbour.
- The U.S. military on Wednesday said U.S. troops are “absolutely” in combat against the Islamic State in Iraq and Syria,
- the US diplomatic source confirmed that Ratney is in Geneva this week and would remain in close contact with the United Nations and with Syrian opposition members at the UN-led talks.
- The White House has instructed the Central Intelligence Agency to halt military support to armed groups that are associated with the Free Syrian Army
- However, it appears that the CIA was instructed nearly a month ago by the White House to freeze all assistance to these rebel groups.
- The change coincided with the change of guard at the White House, from Barack Obama to Donald Trump. Some in Washington, as well as some members of rebel factions in Syria, are concerned that the change in the CIA’s stance might denote a broader policy shift in the White House.
- Senator John McCain (R-Arizona) made a secret trip to a Kurdish-held region in northern Syria last weekend to speak with US military officials, rebel fighters, and leaders in the region.
On Wednesday, Julie Tarallo, a spokeswoman for McCain, confirmed that he’d made the trip, calling it a “valuable opportunity to assess dynamic conditions on the ground in Syria and Iraq.”
- The unusual trip, which the Wall Street Journal said was organized with help of the US military
- During his trip, McCain met with Erdogan in Turkey’s capital to discuss the situation in Syria and current US-Turkey relations.In his statement, McCain says that he has discussed proposals to combat Islamic State with Erdogan, including establishing safe zones in Syria and strategies for driving IS out of Raqqa.
- During his trip, McCain also met with Saudi Arabian King Salman bin Abdulaziz and the Crown Prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, to discuss international relations, just days before a new round of United Nations-brokered talks in Geneva is set to kick off, which are aimed at ending the fighting in Syria, according to the National.
- Senator Rand Paul (R-Kentucky) recently said that McCain has been against Trump because of a “personal dispute,” and said that if McCain was president, “I think we’d be in perpetual war.”
- Wikileaks BUSTS Senator John McCain asking Russia for Campaign Cash! Two days before Wikileaks revealed this shocking treasonous act, Russian UN Ambassador (Vitaly Churkin) DROPS DEAD from a heart attack!Was Churkin killed to cover up McCain’s illegal campaign money scheme — or was Churkin only ‘relocated’ to protect McCain from treason charges?
- Senators from both parties urged Secretary of State Rex W. Tillerson on Thursday to crack down on Syrian President Bashar Assad and his allies amid reports that up to 13,000 detainees were “methodically executed” at a Damascus prison for opposing the regime.