Cash on Lockdown: Bankers “Want Badly to Charge YOU Interest for Depositing YOUR Funds”

Posted on May 15th, 2015

Dollars LockedBy Max Slavo

SHTF has been closely following the recent calls from Wall Street to ban cash and implement a system that would force everyone to operate on the grid, even as interest rates have hit negative and customers are actually charged for keeping money in the bank.

For most observers, negative interest rates signals a bizarre and unsustainable economic landscape, but for those calling the shots, the negative rates are a necessary by-products of capital injections by the Federal Reserve over the course of its quantitative easing operations.

The biggest problem with these negative rates – besides the fact that they defy logic and send the wrong signals to investors – is that there is every reason to withdraw cash and stash it, rather than be charged to keep deposits in the bank.

But that’s exactly what the system wants to FORCE you to do. Money Metals Exchange explains it well:

The Federal Reserve bank and its owners, the largest banks on Wall Street, want badly to be able to charge you interest for the privilege of depositing your funds. The problem is getting you to stand for it.

Read More..

Mediocre Is The New Perfect

Posted on May 13th, 2015

Part-time jobs unemployment by Nate Beeler, The Columbus DispatchBy John Rubino

Three things happened this (Friday) morning: The Labor Department reported a big jump employment; the financial markets responded like kids on Christmas morning; and — with a few hours lag — level-headed analysts deconstructed the jobs report and found it to be mediocre at best.

To take just a few of the high (or low) points:

  • Americans are still leaving the labor force
  • Most of the new jobs created are part-time
  • The vast majority of those are in services, which is to say waiters and bartenders and such
  • Most new hires are over 55

Money managers can of course do this analysis and reach the same conclusion, which is that the US labor market remains a mess, with a predominance of old and/or low-paid service drones where well-paid factory workers and bankers used to be. So why did the financial markets pop on this news?

Because mediocre is the now the new perfect. The best-case environment for stocks and bonds is an economy that is growing just enough to stave off a collapse in corporate profits but not fast enough to goad the Fed into tightening. Read More..

Fury Rises at Disney over Use and Importing of Highly-Paid Foreign Workers

Posted on May 13th, 2015

Discovering The Magic Kingdom book coverEDITOR’S COMMENT: I suspect that there will eventually be some negative publicity towards Disney, partially as a result of these efforts to replace their higher-paid workers with foreign-workers. The reality is that this importing of technology workers under the H-1B program, while beneficial in some respects, is being taken advantage of by certain companies, who are not just supplementing their work force, but actually replacing them with foreign workers. The end result here is another lower of Americans’ standard of living with pressure on salaries and outright firings.

By Patrick Thibodeau

A restructuring and H-1B use affect the Magic Kingdom’s IT operations.

At the end of October, IT employees at Walt Disney Parks and Resorts were called, one-by-one, into conference rooms to receive notice of their layoffs. Multiple conference rooms had been set aside for this purpose, and in each room an executive read from a script informing the worker that their last day would be Jan. 30, 2015.

Some workers left the rooms crying; others appeared shocked. This went on all day. As each employee received a call to go to a conference room, others in the office looked up sometimes with pained expressions. One IT worker recalls a co-worker mouthing “no” as he walked by on the way to a conference room. Read More..

Obama’s Secret Treaty Would Be The Most Dangerous Important Step Toward A One World Economic System

Posted on May 12th, 2015

Barack Obama behind Resolute Desk in the Oval OfficeEDITOR’S COMMENT: Not knowing what is in this agreement that President Obama is pushing so hard for is that important. We can simply not blindly trust him on this or any other major piece of legislation! Hopefully, there are enough Democrats and independent-thinking Republicans who will vote against this fast-track legislation at this time. Once we see what this agreement embodies, then we can move ahead toward possible approval. But, not until then.

By Michael Snyder

Barack Obama is secretly negotiating the largest international trade agreement in history, and the mainstream media in the United States is almost completely ignoring it.  If this treaty is adopted, it will be the most important step toward a one world economic system that we have ever seen.  The name of this treaty is “the Trans-Pacific Partnership”, and the text of the treaty is so closely guarded that not even members of Congress know what is in it Right now, there are 12 countries that are part of the negotiations: the United States, Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.  These nations have a combined population of 792 million people and account for an astounding 40 percent of the global economy.  And it is hoped that the EU, China and India will eventually join as well.  This is potentially the most dangerous economic treaty of our lifetimes, and yet there is very little political debate about it in this country.

Even though Congress is not being allowed to see what is in the treaty, Barack Obama wants Congress to give him fast track negotiating authorityWhat that means is that Congress would essentially trust Obama to negotiate a good treaty for us.  Congress could vote the treaty up or down, but would not be able to amend or filibuster it.

Of course now the Republicans control both houses of Congress.  If they are foolish enough to blindly give Barack Obama so much power, they should all immediately resign. Read More..

The U.K. Elections, Not U.S. Jobs, Caused the Market Rally

Posted on May 12th, 2015

British FlagBy Louis Woodhill

U.S. stock markets jumped for joy on Friday, with the Dow up almost 1.5%. However, this was not because of the April employment numbers, which were mediocre at best. No, the U.S. market surge was propelled by the results of the U.K. elections. The Conservatives, who espoused tax cuts, won a decisive (and, to the pollsters and pundits, shocking) victory over a collection of parties that promised to fight inequality via tax increases on “the rich.”

Jude Wanniski, the author of The Way the World Works, would not have been surprised by the Tory victory. Wanniski’s “political model” postulates that if voters are given a choice between economic growth and income redistribution (i.e., government-enforced “equality”), they will choose growth. The U.K. economy has been growing under the Conservative-led coalition, so the British electorate moved to cement in place the Conservatives’ (relatively) pro-growth policies, by giving them an absolute majority in Parliament.

On this side of the pond, the U.K. election results inspired hopes that the Republicans will get the message, and make economic growth, rather than spending cuts or “inequality,” the focus of their 2016 election campaigns. Read More..

Economic Disinformation Keeps Financial Markets Up

Posted on May 11th, 2015

Economic liesBy Paul Craig Roberts

May 8. Today’s payroll jobs report is more of the same. The Bureau of Labor Statistics claims that 223,000 new jobs were created in April. Let’s accept the claim and see where the jobs are.

Specialty trade contractors are credited with 41,000 jobs equally split between residential and nonresidential. I believe these are home and building repairs and remodeling.

The rest of the jobs, 182,000, are in domestic services.

Despite store closings and weak retail sales, 12,000 people were hired in retail trade.

Despite negative first quarter GDP growth, 62,000 people were hired in professional and business services, 67% of which are in administrative and waste services.

Health care and social assistance accounted for 55,600 jobs of which ambulatory health care services, hospitals, and social assistance accounted for 85% of the jobs.

Waitresses and bartenders account for 26,000 jobs, and government employed 10,000 new workers.

There are no jobs in manufacturing. Read More..

These Blue States Have Tried the Elizabeth Warren Model. Their Residents Are Fleeing.

Posted on May 8th, 2015

Elizabeth Warren at Women In FinanceBy Stephen Moore

Massachusetts Sen. Elizabeth Warren recently appeared on one of the late night talk shows, beating the class warfare drum and arguing for billions of dollars in new social programs paid for with higher taxes on millionaires and billionaires. In recent years, though, blue states such as California, Illinois, Delaware, Connecticut, Hawaii, Maryland and Minnesota adopted this very strategy, and they raised taxes on their wealthy residents. How did it work out? Almost all of these states lag behind the national average in growth of jobs and incomes.

So, if income redistribution policies are the solution to shrinking the gap between rich and poor, why do they fail so miserably in the states?

Day after day, the middle class keeps leaving California. The wealthy areas such as San Francisco and the Silicon Valley boom. Yet the state has nearly the highest poverty rate in the nation.

The blue states that try to lift up the poor with high taxes, high welfare benefits, high minimum wages and other Robin Hood policies tend to be the places where the rich end up the richest and the poor the poorest. Read More..

Major U.S. Retailers Are Closing More Than 6,000 Stores

Posted on May 7th, 2015

Closed Public, Entrance locked, gates lockedBy Michael Snyder

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores?  The “retail apocalypse” that I have written about so frequently appears to be accelerating.  As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable.  So if this is happening already, what are things going to look like once the next recession strikes?  For a long time, I have been pointing to 2015 as a major “turning point” for the U.S. economy, and I still feel that way.  And since I started The Economic Collapse Blog at the end of 2009, I have never seen as many indications that we are headed into another major economic downturn as I do right now.  If retailers are closing this many stores already, what are our malls and shopping centers going to look like a few years from now? Read More..

Not Enough Money? Baltimore Got $1.8 Billion from Obama Stimulus. City Still Burned Despite this Massive Government Investment

Posted on May 6th, 2015

WAIMH Red ArrowEDITOR’S COMMENT: Frankly, it is very hard to imagine how these huge sums could have been spent, never mind been spent wisely. The numbers dedicated for education are staggering, and yet, apparently, no significant improvement. In other words, another prime example of our tax dollars wasted. The reality is that no amount of government spending by itself is going to make a significant difference in the lives of those in Baltimore’s inner-city, until such time as the residents themselves start to shoulder some personal responsibility for some of their debilitating issues, such the level of fatherlessness and the number of babies born out of wedlock. And, when the inner-city voters finally realize that the liberal progressive Democratic leaders do not have their best interests in mind.

By Thomas Lifson

Last Tuesday, President Obama blamed the GOP-controlled Congress for its failure to fund the “massive investment in urban communities” that could “make a difference.”  Well, how does $1.8 billion for the 622,000 people of Baltimore sound?  Pretty massive – actually, just about $2900 for every man, woman, child, and baby of the entire City of Baltimore. Read More..

They Said Go To College: “It Seems Something Went Wrong on the Road To Riches”

Posted on May 6th, 2015

College Debt SlaveryBy Jim Quinn

When I graduated from college in 1986 it was easy to get a job. The economy was booming and 82% of college graduates had a job. The other 18% were probably raising kids because their college educated spouse made enough to raise a family. The mantra for my entire life has been – go to college and you’ll get a good paying job. It seems something went wrong on the road to riches. The percentage of college graduates with jobs has been falling for the last 30 years and has been plummeting since 2008. It is now at an all-time low of 74.3%. Shouldn’t these people have obtained jobs since the government tells us the unemployment rate has dramatically dropped from 10% to 5.5% since 2009? Read More..

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