Apr 272019
 
 April 27, 2019  Posted by at 8:56 am Finance Tagged with: , , , , , , , , , , , ,


Vincent van Gogh Pietà (after Delacroix) 1889

 

The Big Mystery In The GDP Report – Where Did The Inventories Come From? (MW)
China Finds Dollar Hegemony Is A Tough Nut To Crack (WS)
Nearly 102 Million Americans Do Not Have A Job Right Now (Snyder)
Trump Makes Post-Mueller Vow To Release “Devastating” FISA Docs (ZH)
Blowback Is a Harsh Mistress (Kunstler)
Marina Butina Sentenced To 18 Months In Prison (ZH)
Labour Party In ‘Complete Meltdown’ Over Final Say (Ind.)
London Extinction Rebellion Mural is a Banksy (G.)
Greeks The Most Stressed People Worldwide – Gallup (K.)
Brazil Governed By ‘Lunatics’ And US ‘Lackeys’ – Lula (G.)

 

 

Industrial production and imports are both down. But inventories rise.

The Big Mystery In The GDP Report – Where Did The Inventories Come From? (MW)

It is a case that would make Sherlock Holmes proud. Growth in the first quarter smashed expectations, fueled in part by strong inventory building. According to the government, $32 billion of goods were added to inventories this quarter, or $128 billion annualized. This stockpiling of goods boosted first-quarter GDP growth by about 70 basis points and helped propel growth to a 3.2% annual rate, well above forecasts. The problem is that it is not at all obvious where these inventories came from. Goods have to come from somewhere, either produced by domestic firms or imported from abroad. The mystery is that both production and imports fell in the first three months of the year, according to government data.

“You can’t stockpile what you do not import or do not produce,” said Robert Brusca, chief economist at FAO Economics. The Fed reported last week that industrial output slipped at a 0.3% annual rate in the first quarter. And the government’s GDP report estimates that imports fell 3.7% in the first three months of the year. The one other explanation — that consumption fell sharply enough to leave businesses with unexpected unsold goods — also doesn’t fit the evidence, Brusca said. Consumption did not fall faster than industrial production or imports to generate any surplus, he said. To be sure, spending on consumer durable goods fell 5.3%, the biggest drop in 10 years. Business spending on equipment was also weak. “Any way you slice it, this GDP report…is an apparent mess,” he said.

Read more …

Nobody will want the yuan as long as Beijing decides what it’s worth.

China Finds Dollar Hegemony Is A Tough Nut To Crack (WS)

In terms of global reserve currency, the renminbi (RMB) has a share of only 1.9%, in fifth place, and barely ahead of the Canadian dollar, but miles behind the US dollar (61.7%) and the euro (20.7%). Over the past two years, the RMB has made only microscopic headway as a reserve currency. And as an international payments currency, the RMB has failed similarly to crack the co-hegemony of the dollar and the euro. “With more than 1,900 financial institutions now using the RMB for payments with China and Hong Kong, the internationalization of RMB carries great strategic significance” for banks and financial institutions, gushes SWIFT (Society for Worldwide Interbank Financial Telecommunication), which tracks the progress of the RMB as payment currency.


But in March 2019, the RMB had a minuscule share of merely 1.22% for international cross-border payments by value (cross-border payments from one Eurozone country to another Eurozone country are excluded). This minuscule share put the RMB in 8th position, just behind the Swiss franc:

Read more …

Civilian labor force participation rate lingers around 63%.

Nearly 102 Million Americans Do Not Have A Job Right Now (Snyder)

At this moment, we are told that only 6.2 million Americans are officially “unemployed”, and that sounds really, really good. But that is only half the story. What the mainstream media rarely mentions is the fact that the number of Americans categorized as “not in the labor force” has absolutely exploded since the last recession. Right now, that number is sitting at 95.577 million. When you add 6.2 million “officially unemployed” Americans to 95.577 million Americans that are categorized as “not in the labor force”, you get a grand total of almost 102 million Americans that do not have a job right now. If that sounds terrible to you, that is because it is terrible.

Yes, the U.S. population has been growing over the last decade, and that is part of the reason why the number of Americans “not in the labor force” has been growing. But overall, the truth is that the level of unemployment in this country is not that much different than it was during the last recession. John Williams of shadowstats.com tracks what the real employment figure would be if honest numbers were being used, and according to him the real rate of unemployment in the United States at the moment is 21.2 percent.

Just before the last recession, the civilian labor force participation rate was sitting at about 66 percent, and that was pretty good. But then the recession hit, and the civilian labor force participation rate fell below 63 percent, and it stayed between 62 percent and 63 percent for an extended period of time. So where are we today? At this moment, we are sitting at just 63.0 percent. Does that look like a recovery to you? Of course not.

Read more …

“I’m glad I waited because i thought that maybe they would obstruct if I did it early..”

Trump Makes Post-Mueller Vow To Release “Devastating” FISA Docs (ZH)

President Trump on Thursday renewed his vow to declassify a wide swath of “devastating” documents related to the Russia probe “and much more” – adding that he’s glad he waited until the Mueller investigation was complete. In a Thursday night phone interview on Fox News, host Sean Hannity asked “will you declassify the FISA applications, gang of 8 material, those 302s – what we call on this program ‘the bucket of five’?” To which Trump replied: “Yes, everything is going to be declassified – and more, much more than what you just mentioned. It will all be declassified, and I’m glad I waited because i thought that maybe they would obstruct if I did it early – and I think I was right. So I’m glad I waited, and now the Attorney General can take a look – a very strong look at whatever it is, but it will be declassified and more than what you just mentioned.”

Last September 17th, Trump vowed to release all text messages related to the Russia investigation with no redactions, as well as specific pages from the FBI’s FISA surveillance warrant application on former Trump campaign aide Carter Page, and interviews with the DOJ’s Bruce Ohr. nFour days later, however, Trump said over Twitter that the Justice Department – then headed by Attorney General Jeff Sessions (while the Russia investigation was headed up by Deputy AG Rod Rosenstein) – told him that it might have a negative impact on the Russia probe, and that key US allies had asked him not to release the documents.

“I met with the DOJ concerning the declassification of various UNREDACTED documents,” Trump tweeted. “They agreed to release them but stated that so doing may have a perceived negative impact on the Russia probe. Also, key Allies’ called to ask not to release. Therefore, the Inspector General has been asked to review these documents on an expedited basis. I believe he will move quickly on this (and hopefully other things which he is looking at). In the end I can always declassify if it proves necessary. Speed is very important to me – and everyone!”


That key ally turns out to have been the UK, according to the New York Times., which reported last September that their concern was over material which “includes direct references to conversations between American law enforcement officials and Christopher Steele,” the former MI6 agent who compiled the infamous “Steele Dossier.” We now know, of course, that Steele had extensive contact with Bruce and Nellie Ohr in 2016, while Bruce was the #4 official at the Obama DOJ, and Nellie was working for Fusion GPS – the opposition research firm hired by Hillary Clinton and the DNC to produce the infamous Steele Dossier.

Read more …

“Mr. Mueller himself may well be subject to prosecution for destroying evidence and, yes, obstruction of justice…”

Blowback Is a Harsh Mistress (Kunstler)

The Thinking Class behind the bad faith Resistance is about to be beaten within an inch of its place in history with an ugly-stick of reality as The Narrative finally comes to be fairly adjudicated. The Mueller Report was much more than just disappointing; it was a comically inept performance insofar as it managed to overlook the only incidence of collusion that actually took place: namely, the disinfo operation sponsored by the Hillary Clinton campaign in concert with the highest officials of the FBI, the Department of Justice, State Department personnel, the various Intel agencies, and the Obama White house for the purpose of interfering in the 2016 election.


It will turn out that the Mueller Investigation was just an extension of that felonious op, and Mr. Mueller himself may well be subject to prosecution for destroying evidence and, yes, obstruction of justice. John F. Kennedy once observed that “life is unfair.” It is unfair, perhaps, that a TV Reality Show huckster, clown, and rank outsider beat a highly credentialed veteran of the political establishment and that he flaunts his lack of decorum in the Oval Office. But it happens that he was on the side of the truth in the RussiaGate farrago and that happens to place him in a position of advantage going forward.

Read more …

The empire destroying lives to uphold a narrative. It no longer matters what these crazies say, and they know it. The public swallows anything thrown at them. Collusion, Assange, Butina, these are all fictional stories, but today they dictate the headlines and dominate the airwaves. Butina is accused of “Ambitious conspiracy”. When she was 22.

Marina Butina Sentenced To 18 Months In Prison (ZH)

Accused Russian spy Marina Butina has been sentenced to 18 months in prison on Friday after pleading guilty to acting as an unregistered agent of a foreign government, the Hill reports. Butina, who was arrested in 2018, pled guilty to the charges in late. 2018. She will only serve nine months, as the judge knocked nine months off her sentence for time served. Prosecutors had recommended that she serve an additional 18 months, while her lawyers had asked for no prison time and her immediate deportation. Butina wasn’t mentioned in the Mueller report. Before her sentencing hearing on Friday, Butina pleaded with the judge for leniency, RT reports.


“My parents discovered my arrest on the morning news they watch in their rural house in a Siberian village,” she told the court. “I love them dearly, but I harmed them morally and financially. They are suffering from all of that. I destroyed my own life as well. I came to the United States not under any orders, but with hope, and now nothing remains but penitence.” Butina arrived in the US on a student visa in 2016 and became active in pro-gun circles. During the investigation into Russian interference that followed Trump’s electoral triumph, she was accused of working with the Russian government to infiltrate the Republican Party and National Rifle Association. Moscow and President Putin have denied any connection with her.

Read more …

Corbyn still clings to his dreams of an independent left-wing Britain. But matters haven’t stood still for the past 3 years.

Labour Party In ‘Complete Meltdown’ Over Final Say (Ind.)

Jeremy Corbyn is under growing pressure over his party’s position on a second Brexit referendum after a leaked draft of a campaign leaflet included no mention of a Final Say vote. The Labour leader faced an angry backlash over the flyer, with MPs saying it had triggered “complete meltdown” in the party and left pro-EU MPs “utterly furious”. As the row deepened, 75 MPs and 14 MEPs wrote to Labour’s governing body to demand that “a clear commitment” to another referendum be included in the party’s manifesto for next month’s European parliament elections. Mr Corbyn’s top team is split on whether Labour should support a second referendum. Several senior shadow cabinet ministers want the party to support a public vote on any Brexit deal passed by parliament, but Mr Corbyn’s inner circle say he only supports a referendum on the government’s deal or to avoid a no-deal outcome.


Other shadow ministers oppose another public poll entirely. In their letter to the National Executive Committee (NEC), the MPs and MEPs said Labour had “a clear opportunity to win these elections” if it fully supports a Final Say vote. They wrote: “These elections are about the kind of Europe we want to live in, and we can’t make a convincing case in them without being clear about Brexit. Labour has already, rightly, backed a confirmatory public vote. The overwhelming majority of our members and voters support this, and it is the democratically established policy of the party. “Our members need to feel supported on doorsteps by a clear manifesto that marks us out as the only viable alternative to Nigel Farage’s Brexit Party.

Read more …

First, you just have a wall. The next day, you have a wall worth a million dollars.

London Extinction Rebellion Mural is a Banksy (G.)

A Banksy collector and expert believes a mural that appeared at Extinction Rebellion’s Marble Arch base overnight is an authentic piece by the Bristolian street artist. John Brandler, who owns a dozen pieces by Banksy is convinced the artwork – which features the slogan “From this moment despair ends and tactics begin” next to a young girl sitting on the ground holding an Extinction Rebellion logo – is an original because of its execution and theme. The art dealer and gallerist said: “I’m convinced about the one in London for two reasons: it’s a topic that he would support, and it’s a continuation of the Port Talbot piece that appeared in December 2018.

“The name in the corner is not important, the signature is the work. And this is a Banksy. It’s a wonderful statement and a beautiful piece.” The work appeared at the site which had been occupied by climate activists since protests began in the capital almost two weeks ago. A spokesperson for Westminster council confirmed the work was being investigated but had not been authenticated yet. “We’re aware of the possible Banksy which appeared in Marble Arch overnight. Our officers are looking into this,” he said. Banksy has not confirmed whether the painting is legitimate, and his press team did not respond to a request for comment.

Read more …

Gallup does really bad surveys.

Greeks The Most Stressed People Worldwide – Gallup (K.)

Greeks are the most stressed people in the world, according to the results of the Gallup 2019 Global Emotions report conducted on a sample of 150,000 people in 140 countries. According to the poll, which was conducted last year, 59 percent of Greeks said they “experienced a lot of stress yesterday,” putting Greece at the top of the chart for the third consecutive year. After Greece on the list are the Philippines, Tanzania and Albania. The same poll asked respondents about their negative experiences and participants from Chad, Nigeria, Sierra Leone, Iraq and Iran polled the highest. The survey also polled anger levels with Armenians topping the chart, followd by Iraqis, Iranians and Palestinians. The five countries recording the most positive experiences are Paraguay, Panama, Guatemala, Mexico and El Salvador.

Read more …

“Does anyone really think the US is going to favour Brazil?” Lula asked. “Americans think of themselves first, second, third, fourth, fifth – and if there’s any time left over they think about Americans.”

Brazil Governed By ‘Lunatics’ And US ‘Lackeys’ – Lula (G.)

Brazil is being governed by “a bunch of lunatics” and United States “lackeys” who have shattered its international reputation, former president Luiz Inácio Lula da Silva has claimed in his first interview since being jailed one year ago. Lula, Brazil’s president from 2003 and 2011, surrendered himself to police last April after being convicted on corruption charges he disputes. The 73-year-old leftist had been forbidden from giving face-to-face interviews until Friday, when two Brazilian journalists were allowed to visit him at his prison in southern Brazil following a lengthy legal battle.

Lula told them Brazil needed to undergo period of “self-reflection” after what he described as the “crazy” fake news and hate-filled election of far-right populist Jair Bolsonaro last year. “What we can’t have is this country being run governed by a bunch of lunatics. The country doesn’t deserve this and above all the people do not deserve this.” “Brazil is adrift – so far he doesn’t know what to do,” he added of Bolsonaro, who took office in January and has suffered a turbulent opening act in power. Lula said he profoundly regretted “the disaster that is taking place in this country” and criticised Brazil’s dramatic tack towards Washington under Bolsonaro.


“I’ve never seen a [Brazilian] president salute the American flag. I’ve never seen a president go around saying, ‘I love the United States, I love it!’” Lula said of Bolsonaro, who paints himself as a “tropical Trump” and last month travelled to the United States to tout his close relations with the US president. “You should love your mother, you should love your country. What’s all this about loving the United States? “Does anyone really think the US is going to favour Brazil?” Lula asked. “Americans think of themselves first, second, third, fourth, fifth – and if there’s any time left over they think about Americans. And these Brazilian lackeys go around thinking the Americans will do anything for us.”

Read more …

 

 

Home Forums Debt Rattle April 27 2019

Viewing 14 posts - 1 through 14 (of 14 total)
  • Author
    Posts
  • #46956

    Vincent van Gogh Pietà (after Delacroix) 1889   • The Big Mystery In The GDP Report – Where Did The Inventories Come From? (MW) • China Finds Dol
    [See the full post at: Debt Rattle April 27 2019]

    #46957

    In case you’re wondering why all the pietà’s, it’s Greek Easter this weekend, the culmination of Holy Week. And there are so many beautiful pietà’s out there.

    #46958
    V. Arnold
    Participant

    In case you’re wondering why all the pietà’s, it’s Greek Easter this weekend, the culmination of Holy Week. And there are so many beautiful pietà’s out there.

    Thanks, the question did occur…

    #46959
    Dr. D
    Participant

    “The Big Mystery In The GDP Report – Where Did The Inventories Come From? (MW)”

    Not sure what they’re up to with this. Since all statistics and markets are completely fake and manufactured, why have such an irrational number right now? The election isn’t for a while yet. Is it to advertise for America just before they cause a panic in Europe?

    In any case: fake, fake fake. Lies lies lies. Like everything. The economy is so good 1,000 retailers shut down and Trump is in a panic to cut rates. Because, strong economy. Gotcha.

    “ Nearly 102 Million Americans Do Not Have A Job Right Now (Snyder)”

    True, true, true. Has been since 2008. Probably since 1999. Thanks to government ‘helping’ us not take our losses, they dragged out a 5 year recession into 20 years, just like 1931.

    “ Trump Makes Post-Mueller Vow To Release “Devastating” FISA Docs (ZH)”

    Yawn. Yeah, he said he’d tell the truth in January 2017. He said he’d tell the truth in September. Still waiting. There’s 100 years of stuff he could declassify to get us primed for a quantum of truth to appear at last. He declassed a few docs that had been swept mostly clean, and only the most hardened researchers read them. Wake me when anyone is serious.

    “Mr. Mueller himself may well be subject to prosecution for destroying evidence and, yes, obstruction of justice…”

    I hadn’t thought this was that big a deal, but looking at it, he erased the Strozk and Page phones, and also let stand a number of provably false items – like Assange and Russia, while not looking into Uranium One even to whitewash it. That actually may be criminal in a few places. Oddly. Didn’t expect. But since we don’t name, much less prosecute, the most egregious crimes that kill dozens, hundreds, thousands, tens of thousands, I wouldn’t worry. No one will ever be prosecuted here either – they’ll cut a deal, and corruption will roll on.

    What’s the child’s symbol in the Banksy?

    “Brazil Governed By ‘Lunatics’ And US ‘Lackeys’ – Lula (G.)”

    Quite so: they attack every Russian ally, and embargo or attack Russia itself (see yesterdays’ fire at the ICBM plant) and say it’s not war. Of course then the largest U.S. Army base has its power cyber-cut, and they claim that wasn’t war tit-for-tat either. What does Brazil have to do with the United States? They should tell us to get out and mind the door. Who cares if they love us? Americans sure don’t.

    “Ecuador Amazon Tribe Win First Victory Against Government, Oil Companies (AFP)”

    I’d say somebody finally knows what ‘inalienable’ means, but not really and just barely. Still…it’s a win. We need some.

    #46960
    Dr. D
    Participant

    Non sequitor:

    “Extreme snowstorm strikes Middle East: The mysterious and extreme weather has caused bizarre ‘ice floods’ to sweep across deserts in Saudi Arabia, Iran, and the United Arab Emirates”

    Extreme snowstorm strikes Middle East


    In fact, the deserts are blooming there, and in Eastern Africa, lakes that haven’t had water in centuries are starting again, as the deserts tentatively green.

    Coldest day in that other desert, Western Australia, snowboarding there. Now that’s an early winter!

    All in April!

    Coldest April in Michigan, not by absolute numbers, but degree days below average. 2′ of snow in Nebraska when they should be tilling and planting.

    Winter Weather Delays Nebraska Planting

    That’s after records snows in the former-drought CA hills, snows in L.A., Charleston, Arizona down to Mexico, Saudi Arabia, Jordan, tea regions of China, frost-free Punjab, Snows in garden-market southern Spain, London, the coasts of Greece and Italy, the Sahara desert, multiple meter snows in Austria and the Alps, and record cold over all America all season.

    But not to worry: It’s probably all the warming.

    #46961
    V. Arnold
    Participant

    What’s the child’s symbol in the Banksy?
    Dr D

    …next to a young girl sitting on the ground holding an Extinction Rebellion logo

    #46965
    zerosum
    Participant

    After reading this blog and comments, I realize that I’M OKAY. its everyone else that are not OKAY.

    #46969
    Maxwell Quest
    Participant

    The Banksy mural is certainly inspiring. A healthy culture will always sacrifice and plan today so that their children will benefit tomorrow. That should tell you something about our current conditions. Symbolically, a child represents two classic ideas: innocence and the future.

    #46972
    seychelles
    Participant

    VVG as JC???

    #46974

    We have 6 subscribers/patrons so far on Patreon in a week. While we have 1000’s of readers every single day. Do you get the difference?

    Times have changed, and I fully understand if the changes have escaped you, but a site like the Automatic Earth can no longer exist on ad revenue, and that I don’t see coming back. Ad revenue here is down 85%.

    So it’s up to you now. A dollar a month, or 100 dollars, it’s time to show your true colors.

    This is not a sudden thing, it’s just that the very last thing I ever wanted to do is to ask anyone for money, and I know I should have done this 2 years ago, but now I must or there will be no Automatic Earth

    Support us either through our own Paypal widget top left, or though Patreon.

    <center> </center>

     

    <center></center>

     

    #46982
    V. Arnold
    Participant

    May 1st, my first recurring monthly payment of $20 will begin.
    Wish I could afford more Ilargi, and I hear you loud and clear…

    #46984
    ₿oogaloo
    Participant

    I will match V. Arnold. Good work Ilargi.

    #46985
    V. Arnold
    Participant

    @ Boogaloo
    I was hoping for something like that; good on ya…

    #46992
    ₿oogaloo
    Participant

    V Arnold, part of my commitment to this blog is the active contribution of others, including you. I am sorry that I am too busy with work to contribute on a daily basis, as you do. But when TSHTF and I have more time, I have every intention to be a more active participant.

    I should add that my ears also perked up by zerosum’s insightful comment in this thread. I am thankful for the awareness that I am not alone. In my real life interactions with real people I do feel very much isolated and alone. For now, I can only find like minded people online. I think that means we need to support one another as long as we can.

Viewing 14 posts - 1 through 14 (of 14 total)
  • You must be logged in to reply to this topic.