by Charles Hugh Smith from Of Two Minds
Global Reality: Surplus Of Labor, Scarcity Of Paid Work
The industries that are increasing productivity do so by eliminating entire industries and entire job categories.
The global economy is facing a structural surplus of labor and a scarcity of paid work. Here is the critical backdrop for the global recession that is unfolding and the stated desire of central banks and states everywhere for “economic growth”: [...]
Today, our favorite IMF economist, and arguably one of the few people who sees the big picture, Manmohan Singh issued a paper titled “Money and Collateral“, which, not surprisingly, deals with the issues of money and collateral. And while it provides an interesting read, we can jump to the conclusion which is, not surprisingly, that there is simply not enough collateral within the global financial system, which in turn inhibits the proper [...]
In our busy days, it is all too easy to fall into the trap of hearing (and believing) the latest headline and its associated spin. For some reason, three minute videos can quickly and easily remove these ‘spins’ without the need for a PhD. In today’s 3:06 un-spin, the broken-window-fallacy is addressed as the seen versus unseen impact of the idiocy of a broken-window’s (or war, or destroying homes, or…) positive impact [...]
We all know that the CDO/CDS/SVP/Off balance sheet/Shadow banking/ rehypothecating caper on an uprecedented and unregulated scale; where king finance ruled political land, is at the heart of this betrayal of capitalism itself; whatever efficiency and market proficiency existed has now totally disappreared.
So now the bastardised sons of this construct, the vulture HFs play in the interstices of the spider’s web to claim their share of the spoils; like mad [...]
You might assume that the empire majority, false assumers all, would know that organic growth may only come from lawful non-conformers, or that their authorities could change direction of their own volition, but you would assume incorrectly. In that world, a “false assumption” of false assumptions is required to escape. That has substantial implications for the black hole side of your program.
Because it cannot see lawfully conforming social non-conformers, the [...]
BARCLAYS’S JENKINS SAYS `SERIOUS’ PROBLEMS IN EUROPEAN UNIT
For those who may have forgotten, back in the summer of 2007 Bear Stearns had some problems with some of its own units as well…
And some of the other soundbites:
BARCLAYS CEO SAYS BARCAP IS REDUCING CREDIT MARKET EXPOSURE
BARCLAYS CEO SAYS BANK DOESN’T USE RETAIL DEPOSITS FOR INV BANK
BARCLAYS’S JENKINS SAYS 2013 INT RATES TO RISE 100 BASIS POINTS
BARCLAYS’S JENKINS SAYS [...]
The May Chicago PMI is out and contrary to the herd of clueless Wall Street idiots, better known in polite circles as economists, it came at 56.6 on expectations of 62.0, a collapse drop from the 67.6 before. This is the worst monthly drop since the economy imploded back in October 2008, and the second largest two month drop since 1980! A quick look [...]
via Business Insider:
Former hedge fund managers and writer Andy Kessler recently suggested that Bernanke boost the economy by raising interest rates, cratering the stock market, and causing a few banks to fail.
And now everyone is slamming the article he wrote for the WSJ’s Opinion section yesterday.
Kessler argues that raising rates will create jobs, cut costs for consumers and halt inflation (which some argue isn’t even happening). Of course [...]
by Charles Hugh Smith from Of Two Minds
The U.S. Economy Is About to Grow Explosively, Or Whatever
Managing perception is the game plan, not fixing what ails the real economy. Why? Cui bono: it’s all about rescuing a politically sacrosanct and highly insolvent financial sector
According to some analysts, the “recovering” U.S. economy is poised to enter a phase of explosive growth. Other analysts see evidence that [...]
The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. But at least 100,000 new jobs are needed every month just to keep up with population growth.
In other words, the labor market continues to deteriorate.
The only reason the economy isn’t in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), [...]
Worldwide governments have borrowed and spent huge percentages of their GDP in a puerile attempt to protect a criminal class that has looted the public and bribed the legislature – THE BANKS.
There was always a point where this would fail, but it is flatly impossible for anyone to know exactly where it was beforehand.
But mathematically, there was a point where it would fail.
The gamble that Bernanke, Trichet, Obama, Bush, Paulson, [...]
CS (Finally) Initiates Coverage of EPD, DEP, EPE
Master Limited Partnerships Y. Siegel
Enterprise Family Initiation, INITIATING Coverage of EPD, DEP & EPE
! We are initiating coverage of Enterprise Products Partners (EPD) with an Outperform rating and a target price of $38. We are initiating coverage of Duncan Energy Partners (DEP) and of Enterprise GP Holdings (EPE) with Neutral ratings and $28 and $45 target prices, respectively. Our valuation and target prices [...]
Real final sales of domestic product — GDP less change in private inventories — increased 1.7 percent in the fourth quarter, compared with an increase of 1.5 percent in the third.
Real personal consumption expenditures increased 1.6 percent in the fourth quarter, compared with an increase of 2.8 percent in the third.
I think it’s particulary worthwhile to pay attention to the growth in real personal consumptiona as this drives 70% of [...]