Debt has hit an all time high, credit card, auto and student debt, savings has hit an all time low and we are starting to see an acceleration in delinquencies. The student loan debt defaults are rising and more and more students cannot pay back their loans. Congress just approved more spending and tax cuts, this mix is not going to end well. The market is fluctuating and the real agenda is starting to take shape. The bill to audit the Fed has been re-introduced and this time it might get pushed through. The FISA memo is now leading to other investigation and more facts are being pushed out. We are watching the entire scandal unfold right in front of our eyes. Adam Schiff was pranked by the Russia comedians. Lavrov reports that the entire world is about to change.
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Current News – 02.07.2018
- last month that in November US credit card debt had just surpassed the previous all time high hit in July 2008 just before all hell broke loose when Lehman filed for bankruptcy two months later,
- December total consumer credit increased by less than the expected $20BN, it was still an impressive $18.45BN, of which $5.1billion was credit card debt and $13.3 billion non-revolving – or student and auto – loans.
- More importantly, with the latest $5.1 billion increase in revolving, or credit card, debt the total is now $1.027.9 trillion, the highest number on record.
Meanwhile, non-revolving credit which with the exception of one definition change month, has never gone down, also hit a new all time high of $2.813 trillion, a monthly increase of $13.34 billion.
What about its components? Well, with everything else going for record highs, we doubt it will be a surprise to anyone that both student debt and auto loans hit a new all time high in the quarter ending December 2017
personal savings rate just shy of all time lows…
- As the student loan bubble continues to burst, record numbers of Americans enrolling in government subsidized student loan debt-forgiveness plans, known as income-driven repayment, are on track to send the US student-loan program into negative territory, according to a report by the Department of Education’s inspector general.
The plans, known as income-driven repayment, set monthly payments as a percentage of a borrower’s earnings and typically forgive balances after 10 or 25 years, depending on the borrower’s career field and debt amounts.
Overall, borrowers in income-driven repayment will repay less than what they originally borrowed, the report said, draining the program of billions of dollars in expected revenue. –WSJ
- As we reported last month, nearly 40% of student loans taken out in 2004 may default by 2023 according to a report by the Brookings Institute – blowing past all previous projections.
- Of note, approximately 5% of undergraduates took out private student loans in 2004, which swelled to 14% of undergraduates by 2008 – 2,901,000 students according to ticas.org. Private student loans, as opposed to federal student loans, are unable to participate in income-driven government repayment programs.
- The federal student loan system had originally been projected to turn a profit of $25 billion on all loans made up to Sept. 30, 2015 – however that number has been revised down to $5 billion, according to the IG report. The income-driven repayment program alone will cost the government $11.5 billion in revenue.
- “The data show the total costs for all loans…approaching an overall positive subsidy,” which translates to a net cost to taxpayers, i.e. the program going into the red – according Patrick Howard, the department’s assistant inspector general for audit.
Outlays for the Department of Education rose by $31 billion (or 51 percent), because the department revised upward, by roughly $39 billion, the estimated net subsidy costs of loans and loan guarantees issued in prior years—a change much larger than last year’s $7 billion upward revision. If the effects of those revisions were excluded, outlays for the department for the first nine months of fiscal year 2017 would have fallen by $2 billion (or 3 percent).
Outlays for the Department of Housing and Urban Development rose by $29 billion, primarily because the department made upward revisions in June 2017, but downward revisions in April 2016, to the estimated net subsidy costs of loans and loan guarantees issued in prior years.
- it will be interesting to see how private lenders – such as Wells Fargo, adapt to 40% of their 2004 loans defaulting within the next five years.
- Our national debt is rapidly approaching 21 trillion dollars, and yet Congress wants to follow up a large tax cut bill with a massive increase in federal spending. This is absolute madness, and it is going to make our long-term financial problems as a nation far worse. After passing the tax bill, the appropriate thing to do would have been to cut federal spending. Yes, that would have not been a positive thing for the economy in the short-term, but we must start addressing our long-term priorities. the Senate that would increase federal spending by about 200 billion dollars in each of the next two years…
When Barack Obama entered the White House, the U.S. national debt was just over 10.6 trillion dollars, and when he left the White House 8 years later it was sitting just shy of 20 trillion dollars.
So during those 8 years more than 9 trillion dollars was added to the national debt. But for purposes of this example we will round down to an even 9 trillion dollars.
When you divide 9 trillion dollars by 8, you get an average of 1.125 trillion dollars that was added to the national debt per year during the Obama era.
Dividing that figure by 365, you find that an average of $3,082,191,780 was added to the national debt every single day during the Obama administration.
And since there are 24 hours in a day, that means that an average of $128,424,657 was stolen from our children and our grandchildren every single hour of every single day while Barack Obama was president.
- Under President Trump, we should be dramatically reducing federal spending and the size of the federal government.
- Yes, this would hurt the economy in the short-term, but if we continue down the road we are currently on it is a recipe for national suicide.
- As interest rates rise, it won’t be too long before we are paying more than a trillion dollars a year just in interest on the national debt.
- In a shocking moment of frankness, and perhaps desperation, European Central Bank Governing Council member Ewald Nowotny made an interesting comment
the U.S. Treasury purposely pushes down the dollar and wants to keep it low;
Audit the Fed’ bill gets new push under Trump – “It is time to force the Federal Reserve to operate by the same standards of transparency and accountability to the taxpayers that we should demand of all government agencies,”
Controversial legislation to subject the Federal Reserve’s monetary policy powers to outside scrutiny is getting new life in Washington.
Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.) have re-introduced legislation to “Audit the Fed,” after a similar effort stalled in the last Congress.
But such a proposal, which has been vocally opposed by Federal Reserve Chairwoman Janet Yellen, may face its best odds ever of becoming law. Both chambers are controlled by Republicans long critical of the Fed’s policies, and President-elect Donald Trump has heaped scorn on the central bank since the beginning of his presidential campaign.
Paul specifically mentioned Trump in a statement about the bill Wednesday, making clear the measure’s proponents believe they have an ally in their cause coming to the White House.
“The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress,” said Paul.
- A declassified document from the Senate Judiciary Committee confirms that the FBI “relied heavily” on an unverified dossier in order to obtain FISA surveillance warrants on one-time Trump advisor Carter Page
- Unredacted portions of the document reveal the FBI’s extensive involvement with the creator of the dossier, former UK spy Christopher Steele
- Despite Steele lying to the FBI which led to the agency ending their relationship, they still used his unverified memo and vouched for his reputation to obtain the FISA warrants
- The unredacted memo clarifies that the FBI notified the FISA court of the dossier’s political origins “to a vaguely limited extent”
- The FBI has withheld the notes from their meetings with Steele
- Steele received information for an unpublished second dossier from the Obama State Department led by John Kerry at the time
- Much of the information in this “Grassley Memo” matches with the contents of the “Nunes Memo” released by the House Intelligence Committee last Friday.
- A largely unredacted version of a criminal referral made against Fusion GPS operative Christopher Steele reveals several new bombshells, and confirms that the FBI heavily relied on an unverified dossier created by the former UK spy – along with a Yahoo News article which used Steele’s information, to obtain a FISA surveillance warrant on one-time Trump advisor Carter Page.
- The previously redacted sections of the document notably covered up the FBI’s extensive working relationship with Steele – who was paid $168,000 to create the dossier used in the FISA applications.
- The declassified Grassley Memo also clears up a dispute over the extent to which the FBI notified the FISA court that the Steele dossier was an opposition research document.
- The “Nunes memo” released last Friday from the House Intelligence Committee states that “Neither the initial application in October 2016, nor any of the renewals, disclose or reference the role of the DNC, Clinton campaign, or any party/campaign in funding Steele’s efforts, even though the political origins of the Steele dossier were then known to senior and FBI officials.”
- Ranking House Intel Committee Democrat Adam Schiff disputed that the FISA court wasn’t notified of the dossier’s political origins, calling it “inaccurate” and stating that the court was aware that there was a “likely political motivation” behind the Steele dossier.
- From the Grassley Memo:
“FBI noted to a vaguely limited extent the political origins of the dossier. In footnote 8 the FBI stated that the dossier information was compiled pursuant to the direction of a law firm who had hired an “identified U.S. person” — now known as Glenn Simpson of Fusion GPS.”
- The Grassley memo also notes that the FBI never told the FISC that Mr. Steele was “desperate” to see that Mr. Trump was not elected President – as told to the FBI by DOJ official Bruce Ohr, who was demoted for failing to disclose that he met with Fusion GPS and Steele.
- To sum up; FBI agents used an unverified dossier from an anti-Trump opposition research firm, Fusion GPS, which commissioned an anti-Trump former British spy to assemble anti-Trump memosusing high level Kremlin officials as sources. To top it off, Hillary Clinton and the DNC paid for it.
- New text messages between FBI lovers Peter Strzok and Lisa Page have now been made public he big reveal is that then-POTUS Barack Obama appears to be in the loop, on the whole ‘destroy Trump’ insurance plan hatched by upper management at the FBI.
- The messages include an exchange about preparing talking points for then-FBI Director James Comey to give to President Obama, who wanted “to know everything we’re doing.”
- Ranking House Intel Committee Democrat Adam Schiff appears to have fallen for a prank by famous Russian comedy duo “Vovan” and “Lexus,” posing as a Ukrainian politician who claimed to have photos of President Trump having sex with Russian model Olga Buzova after the 2013 Miss Universe pageant in Moscow.
- In an audio recording of the April 10, 2017 phone call, Schiff can be heard discussing the Russia investigation with Vovan who was impersonating Andriy Parubiy – chairman of the Ukrainian Parliament.
- “I would caution that our Russian friends may be listening to the conversation so I wouldn’t share anything over the phone that you wouldn’t want them to hear,” said Schiff at the beginning of the call.
- Undeterred, “Parubiy” continued:
- “In November 2013, Mr. Trump visited Moscow, he visited competition Miss Universe, and there he met with Russian journalist and celebrity Ksenia Sobchak,” Vovan said in a heavily accented English, going on to explain that in addition to having ties to Putin, Sobchak is “also known as a person who provides girls for escort for oligarchs. And she met with Trump and she brought him one Russian girl, celebrity Olga Buzova.” Schiff asked for clarification, and Parubiy kicked it up a notch, telling Schiff that Sobchak is a “special agent of Russian secret service.”
- Listen below:
- The US appears to be aiming at dividing Syria, as US troops still linger in the country even after its promise to end the mission after driving out Islamic State fighters, Russian Foreign Minister Sergey Lavrov said.
- “It’s very likely that the Americans have taken a course of dividing the country. They just gave up their assurances, given to us, that the only goal of their presence in Syria – without an invitation of the legitimate government – was to defeat Islamic State (IS, formerly ISIS) and the terrorists,” Lavrov said.
- Regarding pledges to keep a limited military contingent in the war-town state, Lavrov says the US is not being open about their true objectives.
“The development of a multipolar world will not be fast,” Lavrov went on to say. “It will continue to meet resistance and illegal methods are likely to be employed, such as the use of military force in breach of the United Nations Charter,” the Russian foreign minister said, adding that “all of this erodes international law but we have been trying to counter this trend.”