Euro zone is slowing and heading for a deep depression. France is desperate thinking about selling artwork.Iceland to withdraw EU application. Factory orders decline again.Malls closing down across country. White House implement a gas tax.U.S. Senator Bernie Sanders demands to read the TPP. Harvard Obamacare architects furious that they need to take Obamacare. South Korea claims NK has nuclear weapons that can reach US. U.S. training FSA to fight Assad not Islamic State. Governments catching on that the US is dropping supplies for the Islamic State.
Please check the Sentinel Alerts 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 – 01.06.2015
- The eurozone economy saw anaemic growth in December and suffered its worst quarter for more than a year, a survey has indicated.
- The eurozone economy has seen 18 months of continuous, weak growth.
- French government is considering selling artworks to pay off its debt
- A parliamentary report has suggesting selling paintings and sculptures
- Last year the state-run news channel suggested selling the Mona Lisa
- The country has a huge number of publicly-owned pieces of art
- Paris’ Louvre museum alone has 250,000 works hidden in storage rooms
- opinion polls ahead of Greece’s snap general election on January 25, which shows that the radical Syriza party is on course to win a “clear mandate” to push through anti-austerity policies.
- The report says:
- 36% of the final vote is the approximate threshold beyond which a strong anti-austerity government is plausible. Syriza’s performance has been consistent with this in each of the last 20 opinion polls, and over 40% of the vote on average in the last five.
- Iceland is expected to withdraw its application to become a member of the European Union, citing the country’s prime minister.
- “Participating in EU talks isn’t really valid anymore. Both due to changes in the European Union and because it’s not in line with the policies of the ruling government to accept everything that the last government was willing to accept. Because of that, we’re back at square one,”
- Markit’s US Services PMI missed expectations of 53.7, priting at 53.3, its lowest since Feb 2014. PMI has plunged non-stop for six months leaving Markit noting Q4 growth is looking more like 2.0% than the 5.0% exuberance in Q3.
- “The PMI surveys act as good leading indicators of GDP data, and suggest that the pace of US economic growth will have slowed in the fourth quarter.
- For the 4th month in a row, US Factory Orders have fallen MoM. November’s 0.7% drop is worse than the 0.5% decline expected and leads to the biggest yearly drop since March 2013. Capital Goods New Orders tumbled 0.8% as did non-defense capital goods shipments (down 0.9%). November saw a 8.2% plunge in defense new orders but it was the across-the-board slide in consumer goods orders and shipments, IT new orders, and Computers & Electronics (despite the massive tax cut from low oil prices!!??) that weighed heavily.
- more than 30 million square feet of malls are more than 40% empty, a threshold that signals the beginning of what one one analyst called “the death spiral.”
- “It is very much a haves and have-nots situation,” said D. J. Busch, a senior analyst at Green Street. Affluent Americans “will keep going to expensive malls like Short Hills Mall in New Jersey or other properties aimed at the top 5 or 10 percent of consumers. But there’s been very little income growth in the belly of the economy.”
- property prices in many cities in western countries — namely New York and other U.S. cities, and Dublin, London and other UK cities — is beginning to peter out.
- Many cities have seen speculative frenzies return in recent months which led to price surges which would appear to be unsustainable
- This has been the case in the UK and Ireland, the U.S. and indeed in Canada, Australia, New Zealand and a few other markets.
- The CEBR, one of Britain’s leading forecasters, expects overall declines of around 0.6% with the London property bubble to burst and prices likely to fall around 8%.
- In Ireland, house prices fell 1 percent in the final three months of 2014, according to the latest reports. This is the first time since mid 2013 that the average house price fell compared with the previous quarter. Prices fell nationally and in the capital Dublin, where prices fell by 0.7 per cent, the first drop there since mid 2012.
- In the U.S., the Case-Shiller home price index, released on December 30 showed U.S. single family home price appreciation slowed less than forecast in October and there are signs that certain markets are topping out.
- A sixfold rise in rates from 0.5% to a meagre 3% would devastate home buyers in many countries internationally.
- Should the U.S. be forced to renew QE, it has the potential to create a dramatic loss of faith in the dollar as reserve currency and could result in capital flight.
- Citing “softening market conditions influenced by oil,” US Steel has issued lay-off warnings to 756 workers in the US... Layoffs will begin in early March as both Ohio and Texas plants will be idled.
- The Obama administration will consider a proposal to raise gasoline taxes in the United States if US Congress puts the idea on the table, White House spokesperson Josh Earnest said Monday.
- On Sunday, US Senate’s Commerce, Science and Transportation Committee’s upcoming chairman John Thune said that raising US fuel taxes may be an option amid low gasoline prices
- Investors rushed into long-term Treasurys Tuesday, driving yields down by more than 10 basis points, as concerns that oil’s decline could contribute to deflation around the world rattled markets.
- “I think what we’ve got going on here is a real flight to safety, due to the fact that equities have had a two day selloff,” di Galoma said.
- Saudi has previously vowed to keep production stable and therefore keep prices low despite economic pressure
- A weak global economy is the main reason for “tensions” in world oil markets, Saudi Arabia’s crown prince said Tuesday,
- With Congress on the verge of taking up the controversial, corporate-friendly Trans Pacific Partnership, U.S. Senator Bernie Sanders (I-Vt.) is demanding that the chief trade representative for the United States turn over the full text of the proposed trade agreement.“It is incomprehensible to me that the leaders of major corporate interests who stand to gain enormous financial benefits from this agreement are actively involved in the writing of the TPP while, at the same time, the elected officials of this country, representing the American people, have little or no knowledge as to what is in it,” Sanders . If his request is denied, the senator vowed to introduce legislation that would require that the contents of any trade agreement that the U.S. is negotiating would have to be made public at the request of any member of Congress.“Please also explain why you think it is appropriate that the representatives of the largest financial institutions, pharmaceutical companies, oil companies, media conglomerates and other major corporate interests not only have access to some of these documents, but are also playing a major role in developing many of the key provisions in it,” Sanders added. “Meanwhile, the people who will suffer the consequences of this treaty have been shut out of this process.”
- Harvard’s illustrious faculty has learned that they toowill be subject to their own policy recommendations as relates to Obamacare, which they themselves helped conceive. NYT reported earlier today, “for years, Harvard’s experts on health economics and policy have advised presidents and Congress on how to provide health benefits to the nation at a reasonable cost. But those remedies will now be applied to the Harvard faculty,and the professors are in an uproar.“
- “Members of the Faculty of Arts and Sciences, the heart of the 378-year-old university, voted overwhelmingly in November to oppose changes that would require them and thousands of other Harvard employees to pay more for health care. The university says the increases are in part a result of the Obama administration’s Affordable Care Act, which many Harvard professors championed.“
- The faculty vote came too late to stop the cost increases from taking effect this month
- The Federal Bureau of Investigation is taking the position that court warrants are not required when deploying cell-site simulators in public places. Nicknamed “stingrays,” the devices are decoy cell towers that capture locations and identities of mobile phone users and can intercept calls and texts.
- The FBI made its position known during private briefings with staff members of Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) and Sen. Chuck Grassley (R-Iowa).
- This was prompted in part by a Wall Street Journal report in November that said the Justice Department was deploying small airplanes equipped with cell-site simulators that enabled “investigators to scoop data from tens of thousands of cellphones in a single flight, collecting their identifying information and general location.”
- South Korea says its northern neighbor has developed compact nuclear warheads that could reach mainland America. Seoul also alleges Pyongyang shows no signs of stopping its nuclear program and has gained access to tons of weapons-grade plutonium.
- The new sanctions against North Korea announced by the United States on Friday are an attempt by the US government to set a new precedent and will likely result in more individuals being added to the list, former director of Asian Affairs at the White House National Security Council said
- “I think this is going to be a whole new level of sanctioning that we haven’t seen before… and it seems to me that they’re going to go after a lot of people,”
- Inflation in Ukraine was 24.9% in 2014, Ukraine’s State Statistics Service said on Tuesday.
- In December consumer prices on foods and non-alcoholic drinks grew by four percent. Prices on processed cereals and vegetables surged by 25.7% and 14.4%, respectively. Prices on rice, eggs, butter, fish and fish products, milk and dairy products, non-alcoholic drinks, beef and fruit went up by about 9.8%
- Housing, water, electricity and gas supplies tariffs went up by 1.3%, with the biggest rise in tariffs on heating /3.6%/ and hot water supplies /2.0%/.
- The Ukrainian government forecasted the 2014 inflation to be at about 19%. In 2015, according to the government’s forecasts, inflation will be 13.1% However Valeria Gontareva, the governor of the Nations Bank, says inflation in 2015 will be 17-18%.
- In the face of ongoing ceasefire talks in Berlin and a summit next week in Kazakhstan, Ukraine is arming its military for war. European leaders are becoming less optimistic about the Kazakhstan plan.
- Germany and France cast doubt on next week’s planned peace talks in Kazakhstan.
- Despite these talks, Ukraine has beefed up its heavy weaponry, German news agency DPA reported. Ukrainian President Petro Poroshenko himself was on hand to deliver fighter jets, howitzers, and armored cars to the military
- “I am convinced that 2015 will be the year of our victory,” Poroshenko said. “In order to achieve that, we need a strong, patriotic, and well-equipped army.”
- The delivery of heavy weapons is in direct violation of the Minsk agreement,
- The United States has ended a delay in plans for additional troop deployment in Iraq.
- The commander of the Iranian Army’s Ground Forces says Iran has marked a 40-km red zone into the Iraqi border to warn terrorists of any infiltration attempt into Iranian territories.
- Several senior US and French officials, including US Senator John McCain, entered Syria illegally – without proper visas – on separate occasions, thus violating the country’s sovereignty, Syria said in a complaint submitted to the United Nations.
- The list of officials also included former French Foreign Minister Bernard Kouchner and former US diplomat Peter Galbraith
- “Such actions are a blatant violation of Syria’s sovereignty and of the resolutions of the Security Council concerning Syria,” Ja’afari said.
- The newly elected head of Syria’s opposition-in-exile National Coalition ruled out taking part in a Russian-led bid for new talks to end the Syrian conflict.
- Khaled Khoja, who was elected the day before to head the opposition grouping, said Moscow’s proposal was impossible.
- “The dialogue with the regime that Moscow is calling for is out of the question,”
- “We can’t sit at the same table as the regime … except in a negotiating framework intended to achieve a peaceful transition of power and the formation of a transitional body with full powers,” he said.
- The moderate Syrian opposition that will be trained and equipped by the United States and its allies to fight the Islamic State (IS) may also fight the Assad’s Syrian military, the US State Department spokesperson said.
- The Islamic State of Iraq and Levant announced Tuesday that $250m of its two-billion dollar budget for 2015 would be allocated to the “war on the American coalition.”
- Brigadier General Mohammed Reza Naqdi stated that “The US directly supports the ISIL in Iraq and the US planes drop the needed aids and weapons for ISIL in Iraq …” In addition, he stated that the US Embassy in Baghdad is the command center for ISIL and other “takfiri” militants.Indeed, while the United States military portrays the receipt of weapons and supplies by ISIS as entirely accidental, Naqdi presents the situation as quite the opposite. Iraqi Member of Parliament Majid al-Gharawi recently stated that all information available “pointed out that US planes are supplying ISIL organization, not only in Salahuddin province, but also other provinces,”He also stated that the United States is “not serious in fighting against the ISIL organization, because they have the technological power to determine the presence of ISIL gunmen and destroy them in one month [but have not done so].”Gharawi suggested that the “the US is trying to expand the time of the war against the ISIL to get guarantees from the Iraqi government to have its bases in Mosul and Anbar provinces.”
- South Korea has claimed that North Korea has a 6,000-member cyber-army dedicated to disrupting its military and government.
- The figure is a doubling of its earlier estimate that the North had a cyberwarfare staff of 3,000.