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Debt levels now so great in the U.S. that both the Federal government and two states can’t pass budgets

Because of too many promises politicians couldn't keep, nearly every state in some capacity has fiscal problems that make it more difficult each year to pass a responsible budget.  But for two states, along with the Federal government itself, they have reached the point where they can't even pass a budget at all. We have written extensively about the state of Illinois' inability to deal with its underfunded ...

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Global debt continues to be 325% of the world’s annual GDP

There remains to be an underlying question in the global economy as the world's central banks begin to tighten the screws on their policies of cheap money.  And that is, since the banks and economy have relied almost solely on the Fed, ECB, BOJ, and Bank of China's printing of 10's of trillions of dollars to 'stimulate' the financial system, what is bound to happen once they turn off the monetary spigots? T ...

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New IMF report suggests dollar is 10-20% overvalued

On June 27, the IMF published a report which validated what many in the alternative media knew already... that economic growth over the past nine years following the 2008 financial crisis has been much worse than 'officially' reported.  And because of this, and because of several other factors such as increases to the national debt, the current value of the dollar is estimated to be 10-20% higher than it sh ...

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First Spain, and now Italy as ECB rushes in to deal with insolvent PIIGS banks

A couple of weeks ago, the ECB engineered the final collapse of Banco Popular by allowing Santander to purchase the institution for one euro, and then providing funds to help shore up and recapitalize the bank following the takeover.  And despite EU rules which prohibit bailout interventions, the European Central Bank went around these statutes because Banco Popular's fall would mean severe problems for Ger ...

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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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