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Congress fights Trump’s budget proposal as welfare programs reach record levels of applicants

Earlier this week, the Trump administration rolled out the President's next fiscal year budget proposal which on the surface seeks to cut $1.7 trillion from expenditures over the next 10 years. But as most Americans know from years of experience, Congress doesn't have the stomach to cut anything once they have promised it as an entitlement to the majority of the people.  And it is no different today with th ...

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Housing bubble 2.0? New and existing home sales drop at same time prices reach record highs

Since the only thing the Federal Reserve knows how to do is print money and create asset bubbles, it should come as no surprise that nine years after the bursting of the last housing bubble, the economy has achieved success in the creation of another one.  And as data comes out for the month of April showing slumping sales in both new and existing homes, the contradiction to the this data is in the fact tha ...

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President Trump proposes budget that will force Congress to show Americans their fiscal irresponsibility

On May 22 early reports came out on President Trump's first budget proposal that is expected to not only be rejected by both parties in Congress, but reveal to the American people how the legislative branch has no intention of ever cutting spending. In details leaked out from Trump's budget proposal, the President is seeking to cut $1.7 trillion from entitlement programs over the next several years, with a ...

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Fitch ups ante and increases number of potential retail bankruptcies from eight to eleven

Just one month ago, the Fitch ratings agency published a list of retailers they believed had the strong potential to fail and would need to file for bankruptcy protection just to survive.  And between mid April when that list was published until today, one company on that list did go insolvent and announced bankruptcy proceedings. When the Fitch ratings agency announced that a number of retailers were sitti ...

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Governor Moonbeam Jerry Brown insults taxpayers as freeloaders for not wanting to pay even more taxes

As former British Prime Minister Margaret Thatcher once said, "Socialism only works until you run out of other people's money."  And when you couple this with radio talk show host Michael Savage's famous quip that goes "Liberalism is a mental disorder", then you are able to understand the mindset of certain government officials who not only have a disdain for people who actually have wealth, but they also b ...

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Greek austerity reaches saturation point as police now joining with protesters against government

One of the more important geo-political events we have been watching and waiting on the sidelines for in recent weeks is at what point would the police and military finally capitulate to the protesters in Venezuela and realize that the only way things would change in the South American country was to physically oust President Nicholas Maduro in a military coup.  But as that has yet to happen despite their e ...

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It didn’t take long for next retailer to file for bankruptcy as Rue 21 initiates court protection

When the Fitch ratings agency announced that a number of retailers were sitting on the brink of insolvency less than a month ago, it didn't take long for one of them on that list to initiate bankruptcy proceedings for their business.  And on May 16 Rue 21 became the newest company to file for protection from creditors. In its bankruptcy petition, the company which retained Kirkland & Ellis as legal advi ...

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In Q1 the economy saw retail bankruptcies emerge, and now in Q2 it’s the restaurant’s turn

Following last year's dismal holiday shopping season numbers, several retail chains announced that they were cutting thousands of store locations and tens of thousands of jobs, with even a few like Payless Shoes, Eastern Outfitters, and Wet Seal all filing for bankruptcy protection in the first quarter of 2017. And in news out on May 13, the second leg of the consumer triumvirate appears to be ready to join ...

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More bad news for college students as Fed rate hikes leading to higher interest on student loans

In our current debt based financial system, the banks, as well as the Federal Reserve, continuously need borrowers to to keep the ponzi monetary system going.  And whether it was through the creation of a housing bubble from 2003-2007, or the current bubbles tied to student loans, automobiles, and equities, the moment debt borrowing begins to slow down is the moment the economy rushes full force into the ne ...

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The former haven for wealthy New York hedge fund managers on verge of collapse as Connecticut prepares for bankruptcy

For a long time now the state of Connecticut has acted as the 'suburbs' for wealthy New Yorkers who sought to live in the much friendlier tax haven just a few hours outside of Wall Street.  But as the state began to impose new sliding tax schemes on the rich, and the boom of the past decade has begun to recede for many of these hedge fund managers, Connecticut is no longer thriving as the safe haven it once ...

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Student loan default process looking eerily like 2008 housing foreclosures as DOE orders halt to collections

When the housing bubble burst in 2007-08, the courts were inundated with hundreds of thousands if not millions of mortgage defaults that were immensely convoluted due to the fact that wall street fraud had made determination of ownership nearly impossible.  And the heart of this was the process where mortgage lenders had sold their mortgages to investment banks who then split the deed from the title, and th ...

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The Fed’s dichotomy as interest on the debt now costs the government $500 billion per year from their budget

On May 4 it was determined that the U.S. taxpayer (government) now pays over $500 billion per year in interest on the nearly $20 trillion of national debt.  That equates to 13% of their annual budget which as of last year was $3.8 trillion before adding another $1 trillion or so in deficit spending. Thus both the government and the Federal Reserve are in a quandary, especially as the economy begins to slow ...

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