- US political system designed to weed out truly progressive people - US Pres. Candidate
- Creeping American Socialism
- Gold Breaches R18000/oz, Up 11% In Two Weeks
- Indebted Chinese Companies Increase Pressures on Government
- After Americans are released, U.S. announces new Iran sanctions
- Iran Could Get Five Times More From Oil Sales by Year-End
- Federal Emergency Is Declared in Flint Over Contaminated Water
- “Land sparing” farming could offset agricultural carbon emissions
- Margin Rules Changes Force New Private Funding Of Public Debt
- Canadians Panic As Food Prices Soar On Collapsing Currency
- Don't you want to short this market like crazy?
- Portugal's Bank Bail-In Sets a Dangerous Precedent
- In Maine, Local Control Is a Luxury Fewer Towns Can Afford
- Oil Bust Could End Dollar Domination
- Climate change disaster is biggest threat to global economy in 2016, say experts
- To Save Its Salmon, California Calls In the Fish Matchmaker
As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.
Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.
If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering: What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?
- There are too many signs of deflation to deny it's winning the day
- Why China's weakening will accelerate the global economy's decent
- Why this next crisis will be worse than 2008
- What will it look like if things really get out of control (how bad could things get?)
- The best investments to be making now, before the rout
The deflationary monster is here and there are almost too many warning signs to list, let alone fully describe.
So I’ll just list and link them…you can follow up on the details if you want, it’s the ‘general vibe’ I want to get across.
Here are the signs of a weak economy that we are dealing with:
- Oil in the $20’s (!!)
- Copper under $2
- Baltic Dry Shipping Index at the lowest ever at 383 and down ~50% in the past year.
- Wal-Mart closing 269 stores, 154 in the US.
- Business inventories to sales at new cycle highs
- U.S. freight volume falls for first time in almost three years
- US retail sales fall 0.1% in December
- Empire State index weakens to recession lows.
- South African rand hits new all-time lows in 2016
- Brazil’s Real Falls Sharply Against Dollar
- Brazil Unemployment Rate Rises to 9%
- Canadian Dollar Hits 13 Year Low Against US Dollar
- U.S. Energy Junk Bond Spreads At Record Width
- Nigeria’s Currency Plummets On Open Market
- Mexico’s Peso Hits New All-Time Low
- Chinese Stocks Enter Bear Market (again)
- European Stocks Enter Bear Market
The pattern here is one of rapidly slowing economic activity and mounting pain starting “from the outside in” as emerging markets and the poor people within the core countries bear the brunt at first. Things always get rolling to the downside starting with the weakest, peripheral elements first.
Copper and oil are providing very clear signs that economic activity is not just slow, but in rapid retreat. Wal-Mart tells us that its shoppers are having trouble. The fresh all-time lows in a variety of currencies, plus massive weakness in others, is telling us that the virtuous portion of the liquidity cycle that the Fed, et al., unleashed on the world has entered the vicious part of the cycle.
The pain will spread to the center with increasing speed. The main question is if the authorities can stop that before the momentum becomes too great to halt? And what will happen if they cannot?
The answer to that is...
Architect Alejandro Aravena. (Cristobal Palma / courtesy ELEMENTAL)
- Ebola epidemic to be declared over as Liberia expects all-clear
- Xbox gaming technology may improve X-ray precision
- How To Bridge That Stubborn Pay Gap
- Why Finding Gravitational Waves Would Be Such a Big Deal
- The Urban Death Project Wants to Compost Your Corpse
- Illumina’s Bid to Beat Cancer with DNA Tests
- Fuel cell breakthrough: Team reports success with low-cost nickel-based catalyst
- Great News for Elephants: Hong Kong Is Shutting Down Its Ivory Trade
Learn about a number of knots and a huge variety of uses for that stash of paracord you purchased and have not yet used.
Daily Digest 1/14 - The International War On Cash, Legionnaires’ Disease Spikes In Flint Amid Water Crisis
- When successful investors warn of a global market crash, we should all be nervous
- Is this the Final Leg Down in the Commodity Cycle? How Much Lower for How Much Longer?
- More Than Half of Americans Reportedly Have Less Than $1,000 to Their Name
- The China Syndrome: The Coming Global Financial Meltdown
- Senate shoots down 'audit the Fed' proposal
- Stay The Course! Which One?
- Is the Auto Loan Bubble Ready to Pop?
- Is the American Worker Obsolete?
- China may slow Fed's interest rate rises: Fed officials
- The International War On Cash
- Last Days Of The House Of Saud
- The Man Who Studies The Spread Of Ignorance
- Gold – No Time Left for Conspiracy Theories
- Volkswagen likely to buy back 115,000 cars in U.S: German report
- Russia Breaking Wall St Oil Price Monopoly
- Legionnaires’ disease spikes in Flint amid poisoned water crisis; National Guard activated
In this week's Off The Cuff podcast, Chris and Brian Pretti discuss:
- A Lot Of Deterioration
- Why 2016 is off to a very grim start
- There Will Be Blood
- The carnage from the drop in oil prices will be horrific
- Ugly, Ugly Data
- The economic numbers are shouting sickness worldwide
- Why 2016 will mark the low
When family members do not work or live well together we sometimes call the family dysfunctional. We prescribe professional help for the family or advocate for social policies that would support it — child care, parental leave, extended unemployment insurance, debt forgiveness.
What would a Zero Waste world look like and how do we get there?
One small Japanese town is showing the world that Zero Waste begins with a community-wide commitment to reduce waste.
Kamikatsu, a town of 1,700, wants to become the country’s first Zero Waste community by 2020. At this point, it’s well on its way, recycling 80 percent of its waste, with the remaining 20 percent going to a landfill.
- Prescription drug prices jumped more than 10 percent in 2015, analysis finds
- Puerto Rico on the Brink of Losing Access to Gasoline & Electricity amid Economic Crisis
- State-backed debt growth lifts default fears
- Pennsylvania pension crisis
- Saudi riyal forwards crash through key 1000 level to hit record low
- Petrobras cuts spending plan again as oil-price drop bites
- Puerto Rico Electric Says Not Enough Cash to Make July Payments
- Saudi Debt Risk on Par With Junk-Rated Portugal as Oil Slides
- $1 trillion in capital flows out of China since summer 2014
- Investors Paying to Park Cash Give Czechs Reason to Load Up Debt
- Brazil Cans Carnival as Recession Bites
- India''s Industrial Output Contracts Unexpectedly
- Kuroda Urges Bank of Japan to Change Deflationary Mindset
- Nigerian central bank stops dollar sales to FX operators, naira sinks
- U.K. Industrial Output Plunges Most in Almost Three Years
- Escalating China woes to stunt Singapore’s growth this year
- China rout threatens India
- Chinese banks' new bad loans more than doubled in 2015: sources
- As capital flees, U.S. asset sales by China a headache: James Saft
- China’s slowdown, financial mayhem cast long shadow across world
- Slowing economy puts brakes on China's car market
- Oil dive deepens to 12-year low; $20 warning on China
- RBS cries 'sell everything' as deflationary crisis nears
GCUC USA, 2015. Photo by the author. Follow @CatJohnson on Twitter
- ‘Sell everything,’ global banking giant tells investors and brace for ‘cataclysmic year’
- Economic Collapse Happening Now: Rob Kirby
- Historic First: North Atlantic Empty of Cargo Ships in-transit - All anchored along coasts; none moving
- The State of the Nation: A Dictatorship Without Tears
- Gold's Last Chance: It's Now Or Never
- Bernie Sanders Is Right About Clinton and Big Banks—and Here Are the Numbers to Prove It
- How to Profit on the Dollar’s Strength
- Weapons Industry Revenue Forecaster Enthuses Over Global Turmoil
- Automakers Go Electric, Even if Gas Is Cheap
- Google Rolls Out New Service To Stimulate PV Solar
- You Thought We Canadians Controlled Our Fisheries? Think Again
- 10 things Americans get wrong about America
- World would be more balanced if Russia asserted national interests from outset – Putin
- Colonel Gaddafi warned Tony Blair of Islamist attacks on Europe, phone conversations reveal
- Empires (Like the U.S.) Fall When Corruption Becomes Rampant
- Is Bloomberg Hiding Something?
- Shipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt?
- Is a Crash Just Around the Corner?
- Where Were the Post-Hebdo Free Speech Crusaders as France Spent the Last Year Crushing Free Speech?
Geologist Arthur Berman explains why today's low oil prices are not here to stay, something investors and consumers alike should be very aware of. The crazy-low prices we're currently experiencing are due to an oversupply created by geopolitics and (historic) easy credit, not by sustainable economics.
And when the worm turns, we are more likely than not to experience a sudden supply shortfall, jolting prices viciously higher. This will be a situation not soon resolved, as the lag time for new production to come on-line will be much longer than the world wants.
- How Debt Conquered America
- It's A Xanax World
- Why ISIS Cannot Be Negotiated With
- China’s Hunger for Commodities Wanes, and Pain Spreads Among Producers
- The Opportunity in the Jobs Report
- Flint Wants Safe Water, and Someone to Answer for Its Crisis