zerohedge.com / by Bruce Bartlett via The Fiscal Times on 09/02/2015 20:35
To save myself from answering this question repeatedly, these are the thoughts I have had about Trump since he became a presidential candidate, which were partly expressed in a Politico article over a month ago.
First of all, I think his support is firm and shows no sign of diminishing. He has already weathered storms such as his criticism of John McCain that would have doomed any other candidate. Anyone who thinks he is the current version of Cain, Bachmann, Santorum or other nutcase that briefly led the GOP field in 2012 is dead wrong.
Keep in mind also that in primary elections, one doesn’t need majority support to win in a field with multiple candidates. And intensity of support is often more important than the percentage. Support for the designated favorite of party insiders is often exaggerated in polls and I think Trump’s supporters are unusually motivated.
Second, Trump’s positions on the issues are largely irrelevant to his success. None of his supporters care whether a wall across Mexico is remotely feasible or that he regularly flip-flops on the issues. What he is selling is attitude and a certain fascistic form of leadership. He will get things done, his supporters believe. And it’s less important what he will do than that he will do something.
“How much is enough?” — Bud Fox “It’s not a question of enough, pal. It’s a zero sum game, somebody wins, somebody loses. Money itself isn’t lost or made, it’s simply transferred from one perception to another.“ — Gordon Gekko (Wall Street).
September 3 (King World News) – Jason Goepfert at SentimenTrader: “Traders in the Rydex family of mutual funds panicked. To the greatest extent in 20 years, they’ve shifted more assets out of the bullish index funds and into the bearish inverse funds relative to their long-term trends…
dollarcollapse.com / by John Rubino on September 2, 2015
Twelve months ago the world was happily sailing along in the Great Moderation, with financial markets that moved gracefully higher most of the time but even in their rare negative moments didn’t cause too much angst. The eleven trading days leading up to September 3 saw not a single triple-digit move on the Dow, and only three down sessions.
What a difference a year makes. During the same eleven days in 2015 the Dow had exactly one single-digit close — and eight 200+ point sessions. Stomach-churning descents into the abyss are followed the next day by epic recoveries. The only thing moving in a straight line is volatility.
zerohedge.com / by Tyler Durden on 09/02/2015 21:10
For those unaware, China is conducting a massive military parade on Wednesday to commemorate the 70th anniversary of the end of World War II.
The event – which is accompanied by a three-day public holiday – is important for Xi Jinping, who is keen to project China’s strength to the world, especially in the wake of the country’s economic deceleration and highly publicized stock market meltdown.
Of course the parade also comes amid heightened tensions between Washington and Beijing.
China’s land reclamation efforts in the South China Sea – where the PLA has constructed nearly 3,000 acres of new sovereign territory atop reefs – has regional US allies on edge. The dispute came to a head earlier this year when China effectively threatened to shoot down a US spy plane carrying a CNN crew over the Spratlys.
The US Government/ central bankers are doing what ever they can to wipe away free speech. Ukraine says if parliament doesn’t vote for debt restructuring Ukraine will default. Official defense documents in Ukraine names Russia as ‘military adversary’. US pushes training events all through out Europe. US and the proxy army IS are using water as a weapon in Syria. General Petreaus wants to give weapons to al-Qaeda, which the US has been doing along he just wants to make it legal. US launches secret drone mission in Syria. Another explosion at a Japanese chemical plant occurred after the Chinese explosion..
Americans this morning finally got some good news on the productivity front – though it’s way too early to tell whether the latest Labor Department data mark the start of an encouraging trend. Moreover, the news was much less good for workers, and further weakened claims that the economy is verging on a bout of wage and compensation inflation.
The news came on the labor productivity front – an efficiency gauge that’s more narrowly based than the multi-factor productivity statistics (which try to measure the impact of all economic inputs), but that comes out much more frequently. According to the new figures, labor productivity in the second quarter rose by 3.3 percent on an annualized basis for non-farm businesses (the Labor Department’s universe on this score). That’s the best reading since the the fourth quarter of 2013, and a nice reversal of the previous two quarters’ performance, during which labor productivity fell in absolute terms. At least as good, these revised numbers represent a big improvement over the preliminary results, which estimated the second quarter’s increase at a measly 1.3 percent yearly rate.
Viewed year-on-year, the new figures were mildly encouraging. The second quarter’s annual improvement of 0.7 percent topped the first quarter rate of 0.6 percent. But historically speaking, 2015 is off to a pretty dreary start in this respect.
Yet the employees of these more efficient non-farm businesses didn’t share in the proceeds at all during the quarter.
theeconomiccollapseblog.com / By Michael Snyder on September 2nd, 2015
Russian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar. If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States. In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan. Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar. Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country. If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt. Unfortunately for us, it is only a matter of time until that happens.
When I first read the following excerpt from a recent RT article, I was absolutely stunned…
davidstockmanscontracorner.com / By Gordon G. Chang at The National Interest /
Burn rates never stay the same in a crisis. Beijing will undoubtedly have to spend at a substantially faster pace to support the renminbi if market participants lose even more confidence in coming weeks and months. Moreover, the Chinese central bank will have to spend big if the Federal Reserve raises U.S. interest rates next month, as it still might, and Beijing has no choice but to sell dollars to handle unprecedented capital outflow, which could be running at the rate of $70 billion a month.
Considering everything, it is unlikely that China’sFOREX reserves will last as long as a year, as the Financial Times estimated, even if they are as large and liquid as the State Administration of Foreign Exchange, the central bank’s custodian of the reserves, has claimed.
I wanted to start with The Bad and then move on to The Ugly so that I can end on a positive note with The Good.
So over the past couple days I’ve read several articles in which someone who is publicly an adamant proponent of righteous behaviour was exposed as being a complete hypocrite (think essentially any politician). And this really got me to thinking about the epidemic that has befallen America. We no longer have anyone in positions of trust acting with any sense of integrity. Our policymakers, bankers, corporations, unions, etc., all of these institutions have become nothing but a mechanism to enhance the personal positions of those who have the ability to directly or indirectly control the actions of those institutions.
By the late 1990’s the world was in the most prolonged period of global peace since WWII. Accordingly, military budgets around the world were being slashed. And so those with the powers that be decided the world therefore required some new wars to ensure peace continued (not kidding that is exactly what they argued), as I evidenced in an article last year, The Most Essential Lessons of History that No One Wants to Admit. Now the thing is, it’s not just politicians and policymakers that are devoid of any common decency these days but those who can manipulate every facet of our society.
Let’s look at central bankers for instance. The other day David Stockman wrote a great article highlighting the ridiculousness of statements by the Fed Vice Chair, Stanley Fischer. The point is Fischer is either out of touch, out of his mind or lying to us. But it’s not just at the highest levels that we see this type of human decay. Not at all. (more…)
Chinese stock market will be closed for the next two days. ADP misses employment expectations. The strong job recovery is a big lie. Wage growth is a complete myth. Manufacturing declines, factory orders decline, the collapse is here. The 2008 crisis is nothing compared to what is coming, the next collapse will be horrific. Sweden is refusing to open savings accounts. US imposes more sanctions on Russia.