Housing bubble 2.0 beginning to burst at an accelerating rate

9:53 AM dot come bubble, fed, financial crisis, housing, housing bubble, housing prices No Comments

When the Federal Reserve chose to create a Housing Bubble in the first decade of the 21st century following the wasteland it created from the Dot Come bubble, it would eventually lead to one of the largest financial crises in our nation's history.  And despite the fact that the central bank failed to learn their lesson in propping up a particular asset class (housing) and instead went all in by propping up the Everything Bubble, the end result appears to be the same as Housing Bubble 2.0 has reached its pinnacle.

Home price declines in all major cities and regions:

Accelerating price declines are normally the final measure in determining whether a market has reached a peak, and is on its way downward.  And despite the fact that today's existing home sales saw a pop, the previous 10 months had all been in decline meaning that the trend has been set for U.S. housing.

(New February Numbers for Existing Home Sales in the chart below denote anomaly and outlier)



source: tradingeconomics.com

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Fed's nightmare comes to fruition as inverted yield curve validates the U.S. and the world are now in recession

9:24 AM 10 year, 3 month, fed, inverted yield curve, jay powell, recession, wall street No Comments

It was little more than a week ago when Wall Street and the equity markets roared from the rafters following the Fed's dovish announcement that Quantitative Tightening for all intents and purposes was coming to an end.  However what these scramblers for nickels and dimes failed to realize is that Chairman Jay Powell was signalling between the lines that all was not well.

Let’s be very clear what yesterday’s full frontal capitulation by the Fed means: It’s coming. The next recession that is. It’s just a matter of the how and the when. Now mind you the Fed will never, ever overtly tell you a recession is coming. They can’t. Their underlying primary mission is to keep confidence up. A Fed predicting a recession would cause all kinds of havoc in capital markets and almost certainly bring about a recession. So they won’t tell you, but their actions speak loud and clear. 

Yesterday’s capitulation was so complete and even more dovish than markets had expected. How scared is the Fed? How scared should markets be? What are they seeing that forces them to not only halt the balance sheet roll-off, but to only project a token rate hike for 2020 in effect ending the rate hike cycle? – Northman Trader

Fast forward a week and that prognostication has come to bear as on March 22 the 10 year and 3 month Treasury Bonds inverted for the first time since the start of the Financial Crisis, and there is no doubt that both the U.S. and the rest of the world are fully into recession.

In fact here is a validation that when the 10 year and 3 month yields invert, a recession has occurred every time over the past 50 years.

Besides the bursting of Housing Bubble 2.0, equity markets failing to breakthrough all-time highs reached just a few months ago, the Atlanta Fed announcing GDP could be absolutely flat for Q1, and Germany already a couple quarters into recession, the cake is in the oven so to speak, and everyone needs to prepare for the next Great Recession.

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Genocide by fraud science: Alexandria Ocasio Cortez is today's Rachel Carson

12:14 PM alexandria ocasio cortez, aoc, ddt, genocide, green new deal, rachel carson, silent spring 2 Comments

When you look throughout history at individuals who were considered to be the biggest mass murders of all time, most people would say the obvious ones in Ghengis Khan, Joseph Stalin, and Mao Tse Tung.  And while these men are certainly high up on the list, there is one person rarely spoken of who's ideas helped her become the biggest killer of human life on record.

Of course the individual we are talking about is none other than Rachel Carson and her now debunked theories regarding DDT that were published in her book Silent Spring.  And thanks to her fraudulent claims that DDT was one of the primary causes in the killing of wildlife around the world, its official banning by the United Nations and world governments eventually led to the ongoing deaths of between 50 and 90 million people due to the return of malaria and other diseases.

The crusade against DDT began with Carson’s antipesticide diatribe Silent Spring, published in 1962 at the height of the worldwide antimalaria campaign. The widespread spraying of DDT had caused a spectacular drop in malaria incidence — Sri Lanka, for example, reported 2.8 million malaria victims in 1948, but by 1963 it had only 17. Yet Carson’s book made no mention of this. It said nothing of DDT’s crucial role in eradicating malaria in industrialized countries, or of the tens of millions of lives saved by its use. 

Instead, Carson filled her book with misinformation — alleging, among other claims, that DDT causes cancer. Her unsubstantiated assertion that continued DDT use would unleash a cancer epidemic generated a panicked fear of the pesticide that endures as public opinion to this day. 

Abundant scientific evidence supporting the safety and importance of DDT was presented during seven months of testimony before the newly formed EPA in 1971. The presiding judge ruled unequivocally against a ban. But the public furor against DDT — fueled by Silent Spring and the growing environmental movement — was so great that a ban was imposed anyway. The EPA administrator, who hadn’t even bothered to attend the hearings, overruled his own judge and imposed the ban in defiance of the facts and evidence. And the 1972 ban in the United States led to an effective worldwide ban, as countries dependent on U.S.-funded aid agencies curtailed their DDT use to comply with those agencies’ demands. 

So if scientific facts are not what has driven the furor against DDT, what has? Estimates put today’s malaria incidence worldwide at around 300 million cases, with a million deaths every year. – Aynrand.org

Fast forward to today (2019)...

Sadly, hysterical claims and demands for environmental change did not stop here in the 21st century, as seen by the extraordinary efforts and agendas to change the world under the guise of 'Man-made global warming'.  And ironically we may have just encountered the next Rachel Carson in one Alexandria Ocasio-Cortez who following her election to Congress issued a new mandate that some estimate could see the deaths of over 2.3 billion people, if not the entire human race..

The “Green New Deal” proposed by congressional Democrats is a “recipe for mass suicide” and the “most ridiculous scenario I ever heard,” Greenpeace Co-Founder Patrick Moore (shown) warned in an exclusive interview with The New American. In fact, Dr. Moore warned that if the “completely preposterous” prescriptions in the scheme were actually implemented, Americans could be forced to turn to cannibalism to avoid starvation — and they still would not survive. Other experts such as Craig Rucker, the executive director of the environmental group Committee for a Constructive Tomorrow (CFACT), also sounded the alarm about the “green” proposal in Congress, comparing it to Soviet five-year plans and calling it a “prescription for disaster.”  - New American

Judging by how the world is now actually cooling versus heating up thanks to solar cycles, a bonafide pole shift, and changes to the electromagnetic spectrum, we are once again on the threshold of a push for a fake crisis created by fraud science that has the potential if implemented to eradicate most human life on the planet.  And perhaps today we might remember the failed lessons of Rachel Carson some 50 years ago, and ignore the consensus and instead seek real scientific solutions to what are true legitimate problems.  

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Just like in many places within the EU, American legal and illegal immigrants are the largest recipients of welfare per capita

10:00 AM democrats, illegal immigrants, legal immigrants, migrants, welfare No Comments

With the Democrats today wanting to not only eliminate the office of ICE, but open our borders to any and all immigrants from across the world, a new study out on March 12 shows that a large portion of the current legal and illegal immigrants living in the U.S. are on the welfare dole.

In fact according to the report, legal and illegal immigrants use welfare nearly twice as much as regular citizens do, meaning that per capita any increase in these numbers would blow up a system that currently costs taxpayers more than $1 trillion per year at the Federal level alone.

New research has discovered that foreign noncitizens use nearly two times the amount of welfare as native-born Americans. Both legal and illegal aliens fall into the category of foreigners who take from the welfare system. 

According to a report by Breitbart, in recently released research by the Center for Immigration Studies (CIS), analysts discovered that about 63 percent of noncitizen households, those who live legally and illegally in the U.S., use some form of public welfare while only about 35 percent of native-born American households are on welfare. – SHTF Plan

The U.S. is not the only country or region where vast migration has threatened to destroy current welfare systems.  In Europe, where the European Commission has embarked on a massive migration scheme, Northern European country's such as Denmark and Finland are on the cusp of economic and political collapse due to influx of immigrants who rarely work, but receive thousands in free benefits.

There is a reason in history why certain nations and regions prospered and achieved while others simply languished in what we now call 'third world status'.  And bringing in peoples from cultures not known for growth and innovation rarely changes their paradigms, especially when they can simply take from those who have a background and tradition of hard work and success.

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Bernie Sanders' Socialist utopia's collapsing as Denmark and Finland stand on cusp of economic and political failures

9:28 AM bernie sanders, Denmark, economic collapse, eu, finland, migrants, socialism, sweden, welfare No Comments

Independent/Democrat/Independent/ to once again Democrat is running for the Presidency of the United States in 2020 under the banner of Making America Socialist.  However perhaps the most disconcerting thing for both him and his growing base of Americans desiring to usher in an authoritarian system is that more and more of Sanders' socialist utopias are failing across the world.

In a couple of new reports out recently on both Denmark and Finland, the long-standing Socialist enclaves in Northern Europe appear on the brink of economic and political collapse due to a failure in their welfare and economic systems, and in their schemes to admit hundreds of thousands of unskilled foreign migrants to supplement it.

Finland:

Finnish Prime Minister Juha Sipila stepped down just weeks before a general election after failing to push through parliament plans to overhaul health services and social care in the face of an aging population. - Fortune

In addition, Finland's scheme to bring in tens to hundreds of thousands of foreign migrants to prop up their welfare system has not only seen their system taxed even more, but actual skilled workers are leaving the country in droves.

Young Finnish professionals are attracted to major European capitals. They move to Stockholm, Berlin and Amsterdam, as well as farther away. The sun shines in Dubai; the world’s top organizations and institutes are in New York and Washington. The occupations of these migrants are manifold: bankers, graphic designers, computer engineers, photographers and researchers, to name only a few. 

They leave Finland because of poor employment opportunities and future prospects. This has been happening for a long time. Finns were moving to North America 100 years ago and to Sweden after World War II–in both cases because growing economies needed factory workers. 

The difference with today’s migrants is they are better educated and leaving a welfare state that ranks as one of the best places to live in the world according to most indices. The likelihood of them returning has nevertheless fallen sharply. - QZ

Denmark:

Meanwhile, Denmark has found that the recent mass immigration imposed upon them by the EU has led to a huge drain on their welfare system, with the majority of these migrants not working, and cashing in on a virtually free lifestyle.

According to a 2017 report by Statistics Denmark, only about half of non-Western immigrants between the ages of 16 and 64 are employed (53% of men and 45% of women). When broken down into countries of origin, however, major differences among migrants were revealed -- with the employment rate being particularly low among those hailing from Iraq, Lebanon, Somalia and Syria. 

Analyzing Statistics Denmark data, the Danish Employers Confederation revealed that in 2016, 41.5% of non-Western immigrants were on welfare, while only 17.5% of ethnic Danes were supported by the same benefits. In 2017, a third of all the people provided for by Denmark's basic social-welfare system were immigrants, which constitutes a rise of 82% in a mere seven years. 

These figures show that the public expenses connected to immigration will, in the long run, bring the welfare state to an end. - Gatestone Institute

One of the primary reasons this is so important is because Sanders, along with most Democratic Socialists, want open borders, mass immigration, and a full blown welfare state supporting citizens and non-citizens alike.

Of course we cannot leave this topic without looking in on Sweden which is one of the huge talking points Bernie Sanders uses in pushing for America to join in his Socialist revolution.  However the irony of course is that Sweden found that public control over much of the economy was a failure, and over time has privatized their welfare system contrary to the Socialist model.

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New bombshell indictments show the entire American education system from Kindergarten through college is one big scam

1:18 PM bribery, college, education, fraud, scandal No Comments

As the American people start to digest several recent education fraud scandals across the country that involved elementary and preparatory students being given grades and diplomas they didn't actually achieve, a new bombshell scandal announced in March 12 is about to encompass the University system as well.  And rather than this one being school districts in Atlanta or Baltimore pushing through minority students who weren't eligible to graduate, this one involves wealthy elites buying their way into prestigious colleges when their scores didn't merit their acceptance.

Federal prosecutors announced that they were charging dozens of people, including famous actresses Felicity Huffman and Lori Loughlin, in an alleged scheme to help students get admitted to colleges under false pretenses on Tuesday. They are being charged with conspiracy to commit mail fraud. 38 people have reportedly been arrested thus far.  

Prosecutors are alleging that the individuals charged tried to bribe college entrance exam officials in order to cheat on admissions tests and that some conspired to bribe coaches and administrators to label their children as "recruited athletes". Athletes can sometimes get preferential treatment.  

Among the colleges involved were Georgetown University, Yale University, Stanford University and University of California Los Angeles, according to a WSJ writeup. Charitable organizations were used as fronts for the bribery payments, according to authorities. A Newport Beach college counseling business, the Edge College & Career Network LLC, was named as the main facilitator of the bribes.  

More than $6 million in bribes were paid, according to The Daily Mail, who also reported that "[Lori] Loughlin and her husband 'agreed to pay bribes totaling $500,000 in exchange for having their two daughters designated as recruits to the USC crew team'". Loughlin's husband Mossimo Giannulli has also been charged. It was also reported that Huffman paid a $15,000 charitable contribution. Her and her husband William H. Macy had planned to do the same for a younger daughter of theirs later this month, according to reports. - Zerohedge

It appears that education is no longer about learning the necessary skills to be able to choose a vocation which will help you through your adult life, but rather a scheme where getting the right name of a school on your diploma is what is now vital at all costs... legal or illegal.

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Jim Willie: Global re-engaging of QE, China's anti-dollar agenda, and Basil III are major factors in an upcoming gold price explosion

12:56 PM basil iii, central banks, china, dollar, gold, jim willie, qe, reserve currency No Comments

With gold prices having been beaten down over the past three weeks from a potential breakout level of $1350, a number of factors in the process of being implemented is projecting that the current downturn will be relatively short.  And according to the latest publication from Hat Trick Newsletter author Dr. Jim Willie, these factors include China, gold, and de-dollarization, the advent of Basil III rules, and central banks realizing that they will soon have to change course from Quantitative Tightening to that of Quantitative Easing.

The Gold suppression game appears finally to be coming to an end. A Perfect Storm is hitting the Gold market, with an internal factor (QE), an external factor (SGE), and a systemic factor (Basel). All three forces are positive in releasing Gold from the corrupt clutches of the Anglo-American banker organization. They have been willing to destroy the global financial structure and many national economies, in order not just to maintain the political power, but also to continue the privilege of granting themselves $trillion free loans. In the last ten years since the Lehman Brothers failure, all systems have undergone the same reckless treatment that the mortgage bonds endured. They saw corrupted underwriting, corrupted title database, rigged market pricing, and corrupted demand functions. Slowly the realization is coming to the fore, stated by a few astute analysts. In the last decade, the US-UK banksters have created the USTreasury bond as the global subprime bond. This is the result of astounding persistent magnificent QE abuse and hidden corruption. The so-called financial stimulus is actually hyper monetary inflation, which has destroyed the bond market. - GoldSeek

Additionally in Dr. Willie's newest writ, a breakdown of the current global financial environment is addressed along with a projection that the days of the dollar remaining as the unipolar reserve currency are quickly ending.

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Italy gives the middle finger to both the U.S. and EU by joining China's Silk Road project

12:31 PM belt and road, eu, italy, silk road, trade agreement, washington 1 Comment

In a move that is sure to cause both consternation and apoplexy within both Brussels and Washington, Italy has officially announced they intend to join China's global Belt and Road project.

The Belt and Road initiative, or also known as the Silk Road 2.0, is a global trade route being built between South Korea and the UK, and would expand trade potential between Europe, Eurasia, and the Far East several fold.

Italy is planning to formally back China’s multi-trillion-dollar Belt and Road Initiative (BRI). It would become the first G7 nation to join the ambitious project which promises to significantly boost global trade. 

Rome is preparing to sign a memorandum of understanding to officially support the project, championed by Chinese President Xi Jinping, by the end of March, according to Michele Geraci, undersecretary in Italy’s Ministry of Economic Development as quoted by FT. 

“We want to make sure that ‘Made in Italy’ products can have more success in terms of export volume to China, which is the fastest-growing market in the world.” – Russia Today

With both France and Germany seeking to integrate ALL European budgets and economies under the EU banner, one wonders how long Italy may even stay within the Union if Brussels attempts to put pressure on their signing this trade agreement which will be outside the authority of the EU.

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President Trump seeks to integrate some portions of the Chinese Socialist model and that might be a good thing

12:05 PM 5g, china, chinese model, internet, nationalize, president trump, socialism No Comments

In the wake of California's primary utility company PG&E seeking to file bankruptcy for the second time in a decade, an interesting case could be made for the government to take control over primary necessities such as energy, utilities, and even banking in the economy.

This of course is what is done in China under their Socialist economic model, where the government controls areas such as finance, energy, resources, and transportation, and the rest of the economy is left open for entrepreneurs and capitalism.

But is this something that could take place in America?  Well according to a number of declarations by President Donald Trump over the past few months, this is exactly what he is proposing in multiple areas around the country.

Trump apparently wants to control 5G in a ‘state-run’ socialist twist to American capitalism—and now there are indications that it could become part of the 2020 election campaign. 

Over the weekend, President Donald Trump’s 2020 campaign team renewed its controversial pitch on nationalizing the country’s 5G network. In other words, the government would have control of 5G airwaves and lease access to private wireless providers. - Safehaven

Government control over the burgeoning 5G network is not the only area of the economy that the President has called to be nationalized.  In fact his attacks on the Federal Reserve coupled with his call for a government run business lending facility shows that he believes that private control over the nation's monetary and financial systems have not led to results that are 'making America great again'.

In reality government control over primary resources such as energy, banking, and transportation would not be any worse than what is occurring now within the country's dilapidated environment and infrastructure.  And who knows... melding a combination of socialism and capitalism similar to the Chinese model might appeal to both the radical left and conservative right as long as those in charge are not beholden to the companies and contractors who will benefit.

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The irony of Democrat's tax the rich agenda is that they conspicuously make it to avoid taxing their own massive wealth

2:37 PM 1%, bernie sanders, cory booker, democrats, elizabeth warren, kamala harris, rich, socialists, tax the rich No Comments

Unfortunately in today's world, a large portion of Americans have been programmed to think with their emotions rather than through logical thought.  And thus the media, academics, and politicians can easily sway them like sheep to either like or dislike whatever they desire.

So with this being said, the latest 'critical agenda' item being pushed as an emotional outrage is to once again dredge up how the rich need to pay their 'fair share', and that taxing them into oblivion will solve all of out financial problems.

However what is perhaps the most ironic thing not being discussed is that those in Congress who are calling for a 90% tax on anyone making or even holding more than $10 million is that this number is just under the net worth of the majority of Democrats calling for taxing the rich.

If you break down wealth distribution to percentages, all one needs is to earn $60,000 or more to be considered in the Top 20% of the net worth food chain.  And since according to statistics $8 million of net worth puts one into the top 1%, isn't it interesting that the Cory Booker's, Kamala Harris's, Elizabeth Warren's, and Bernie Sander's of the movement, who happen to be in the top 2 - 5%, make sure under their proposals that they avoid being a part of the rich who get fleeced.

Net Worths:

Bernie Sanders:  $2 million - Top 4% of wealthy

Elizabeth Warren:  $8.3 million - Top 1% of wealthy

Cory Booker:  $1.3 million - Top 5% of wealthy

Kamala Harris:  $1.8 million - Top 5% of wealthy

It is ironic that the majority of individuals who have called for, or implemented Socialism, Marxism, and outright Communism have themselves been part of the elite and upper crust, or became so immediately after this economic system came in.  And perhaps we can simply look at two of Bernie Sander's heroes... Hugo Chavez and Fidel Castro, who are estimated now or at the time of Chavez's death to each be worth between $4-5 billion, to see that this is always the case.

Just remember, when someone rich calls for taxing the rich, they aren't really ever talking about taxing themselves for their beliefs.... simply ask Warren Buffett who said he wanted to pay more in taxes, but has the best accountants in the world on his staff so he doesn't have to.

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