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Fed doesn’t appear to understand real inflation as food prices soar 14% in just the past two months

Last week Janet Yellen and the Federal Reserve chose to raise interest rates a quarter point at a time when economic data has been at or near recessionary levels for at least the past two quarters.  And of significance was the FOMC's claim that inflation was still running below the central bank's target rate of 2%. The Federal Reserve approved its second rate hike of 2017 even amid expectations that inflati ...

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Illinois so bankrupt that even Powerball dumped them for fear of receiving payments

It is perhaps not ironic that the two states that are most in debt are ones that are ruled completely by Democratic politicians.  And of course we are referring to California and Illinois. However, at least for California they have had the fortitude to pass an annual budget.  But for Illinois, their incompetency at the legislative level is so great that not only have they not passed a budget in over three y ...

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Will the Fed claim today’s core retail sales miss as another ‘transitory’ data indicator as they prepare to announce next rate decision?

As the Federal Reserve begins their two day FOMC meeting on June 14, a major economic indicator was published today which showed that core retail sales declined for the month of May, and was the lowest print since January of 2016. This data also coincides with the first quarter announcement of only a .7% increase to the GDP, and the growing number of retailers and restaurants that are shuttering their doors ...

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Economic recovery fraud as 93% of all new jobs are imaginary, and 72% of all businesses are unprofitable

Tens of trillions of dollars in printed money can mask many ills, but there was a reason why the voters chose to elect Donald Trump to the office of President during last year's election... because on Main Street the economic recovery so touted by the Fed has been a complete fraud. And while we could quibble over the fact that 93 million Americans are not even being counted in the nation's labor pool, or th ...

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First retail, and now restaurant spending declines dismiss remaining Hopium for the economy

When the Federal Reserve last month tried to spin the deteriorating economic numbers as a 'transitory anomaly' in their March FOMC minutes, they blatantly ignored every real indicator which showed that not only were consumers buying less, but they were also paying more due to rising price inflation.  And this rapid decline in the most important segment of the economy appears to be getting even worse now tha ...

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Bankrupt Puerto Rico votes yes to apply for statehood

On June 11 Puerto Ricans went to the polls to decide once again whether to remain as a territory, or to apply to become the 51st American state.  And with what one could consider as an extremely uncaring record low turnout, the result was a yes vote for statehood. However voting for statehood and actually becoming a state are two different things, as the island territory has voted for, and applied for this ...

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Real indicator of lower tax receipts negates ongoing fraud that U.S. companies are achieving higher earnings

Since most U.S. corporations do not have to report real total earnings thanks to their ability to function under non-GAAP accounting, it is often amusing to see when a company reports lower revenues than the quarter before, but then goes and beats their earning 'estimates'.  And according to a study by Marketwatch last year, this is especially prevalent for the top corporations on the S&P 500. Marketwat ...

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Retail chains on the edge continues to grow as number jumps from 11 to 22 in just a week

Last week we wrote about the most recent retail/restaurant chain to announce they were preparing to file for bankruptcy protection, making the managers of Joe's Crab Shack the third store conglomerate in the past 30 days to publicly cede to default or insolvency.  And now on June 9, the list of retail chains residing very close to the edge of needing their own bankruptcy protection has doubled in just a wee ...

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Collapse of retail keeps on coming with more store closures and another retail chain bankruptcy

Just a month after Sears CEO Eddie Lampert gave an extremely animated Earnings Call in which one shareholder asked him if he was 'paranoid' and 'delusional' about his belief that the long-standing retailer would soon turn things around, the once primary anchor store of nearly every mall in America is closing down 66 more stores in what has been a hemorrhage of locations over the past several years. Less tha ...

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Seattle continues to prove their goal is to drive businesses completely out

There is a nearly flawless truth when it comes to liberal government policies... they have absolutely no idea how money and finance works.  And whether it is the implementation of Obamacare at the Federal level, which has in just a few short years destroyed affordable healthcare in America, or the implementation of higher minimum wages, which are causing restaurants and other small businesses to either have ...

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Following Friday’s jobs report fail, new factory orders come in negative for first time in over a year

Following last Friday's job report in which only 138,000 were created in the month of May, another report that acts as a signal for the strength of the economy was announced on June 5 as new factory orders in the month of April declined for the first time since February of 2016. Factory orders for durable goods represent a two-fold indicator for businesses.  First, it shows how much growth in retail may act ...

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Less than three weeks after Rue 21 files for Bankruptcy, Gymboree prepares to do the same

America is seeing the death of retail accelerate before their eyes as the second fringe clothing retailer in less than three weeks prepares to file for bankruptcy protection following their defaulting on an interest payment. Gymboree is a retail chain that currently operates 630 Gymboree Retail, 150 Gymboree Outlet, 130 Janie & Jack, and 290 Crazy 8 stores in the US.  And it has already been through a f ...

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