• Tag Archives Congress
  • US Futures, Global Shares, Dollar All Jump On Brexit, Basel News, Averted US Shutdown; Payrolls Loom

    U. S. equity index futures have bounced on the last day of the week, along with European and Asian shares, oil and the dollar following overnight news that the UK and EU have reached a successful conclusion on Phase 1 of Brexit negotiations, that Congress averted a government shutdown with another can-kicking 2 week measure until December 22, after strong Chinese trade data and an upward revision to Japanese GDP, and ahead of the November nonfarm payrolls data which is expected to cement the December Fed rate hike.
    Setting the bullish mood this morning was Christmas coming early for Theresa May, who managed to forge an agreement – if only for the time being – with the EU in the early hours of Friday morning to pave way for phase 2, with talks set to move to trade with support being voiced by Senior Brexiteers, Gove and Johnson. In reaction to this, GBP initially hit a 6-month high, however once the agreement had been confirmed, the pound saw a “buy the rumour sell the news” price action, while gilts were met with selling pressreure with the price making a firm move below 124.00.
    Also after the close on Thursday, the House voted 235-193 and Senate voted 81-14 to pass the stopgap spending measure which will avoid a government shutdown and fund government through to Dec. 22nd, kicking the can on and averting a government shutdown for another two weeks.
    European stocks advance in a broad rally amid optimism over a newly-struck deal between Britain and the European Union to unlock divorce negotiations and proceed to discussing a future trade deal. The Stoxx Europe 600 Index rises 0.7%, with the index heading for a weekly gain of 1.3%. Banks advance the most, up for a second day, as the sector emerged relatively unscathed from global regulators’ final batch of Basel III post-crisis capital rules, with few lenders needing to raise major new funds. Miners are also among the best indusreptry group performers, following copper prices higher. The FTSE 100 is trailing other European indexes, trading little changed, as the pound climb.

    This post was published at Zero Hedge on Dec 8, 2017.


  • Crackdown Comes To Wall Street: Morgan Stanley Fires Harold Ford Jr Over Alleged Sexual Misconduct

    Ten years after leaving Congress, Harold Ford Jr could be the canary in the coal-mine for Wall Street as the global awakening to sexual abuse strikes a bulge-bracket bank.
    Harold Ford Jr. ‘has been terminated for conduct inconsistent with our values and in violation of our policies,’ Morgan Stanley spokeswoman Michele Davis said in a statement to Bloomberg News.
    Huffington Post reports that the bank’s human resources department investigated claims he harassed a woman he met in a professional capacity.
    In two interviews with HuffPost, the woman alleged that Ford engaged in harassment, intimidation, and forcibly grabbed her one evening in Manhattan, leading her to seek aid from a building security guard. The incident took place several years ago when Ford and the woman were supposed to be meeting for professional reasons. Ford continued to contact her after the encounter until she wrote an email asking him to cease contact.
    The email, which was reviewed by HuffPost, shows that the woman emailed Ford after he repeatedly asked her to drinks. She asked him not to contact her anymore, citing his inappropriate conduct the evening where he forcibly grabbed and harassed her. Ford replied to the email by apologizing and agreeing not to contact her.

    This post was published at Zero Hedge on Dec 7, 2017.


  • A Potential Government Shutdown Is Literally Just Hours Away, But Congressional Leaders Insist That Everything Will Be Just Fine

    Either the Republicans are going to give Democrats virtually everything that they want, or the federal government will shut down at the end of the day on Friday. We have been through this process time after time, and in every single instance the Republicans have always folded like a 20 dollar suit. Unfortunately, it looks like the Democrats are going to win big this time around too. The spending agreement is essentially an updated Obama budget that fully funds Planned Parenthood, that contains no money for a border wall, and that doesn’t reflect any of President Trump’s other important priorities either. On Thursday, the House is expected to pass this horrible bill, and the Senate is expected to take up the matter on Friday. According to Bloomberg, right now this plan would keep the government open through December 22nd…
    The House Rules Committee approved a rule setting the bill up for a floor vote Thursday, after which the Senate will have until the end of the day Friday to avoid a partial government shutdown. A formal check of how members would vote on the Dec. 22 deadline came back showing widespread support, said Representative Dennis Ross, a member of the vote-whipping team.
    So even if this plan gets through both the House and the Senate, we will be facing another government shutdown deadline in just a few weeks.

    This post was published at The Economic Collapse Blog on December 6th, 2017.


  • Got It Figured Out Yet?

    Has the light come on yet?
    Why do you think the US Congress passed the Sexual Assault Taxpayer Bailout Act by unanimous vote in 1995 — and Bill Clinton signed it? Why has it not been repealed — and in fact, even today there is no bill on the floor of either House or Senate to repeal it, nor has Trump called for it to be repealed and stated he will refuse to sign any other bill (which is within his power) until it is?
    The Hollyweird cabal’s escapades are not just limited to harassment. We all know about the Michael Jackson allegations. Then there’s Epstein — and his connections to both the entertainment and political “industries.” Epstein, I remind you, was convicted and yet of all the people who I’ve ever read about being convicted of that sort of offense he’s the only one who was basically given a slap on the wrist instead of decades in prison.
    Worse, all of the others connected to him were not pursued. At all. Herr Clinton was of course one of those persons but hardly the only one. Number of prosecutions of those others? Zero.
    So let’s ask the inconvenient question: Is all of this in the political and media sphere nothing more or less than a monstrous blackmail scheme and that is why it never came out until it suddenly was forced into the public eye by some damning revelations that could not be silenced once they got circulating on Social Media?

    This post was published at Market-Ticker on 2017-12-07.


  • Bi-Weekly Economic Review: Who You Gonna Believe?

    We’ve had a pretty good run of data recently and with the tax bill passing the Senate one would expect to see markets react positively, to reflect renewed optimism about economic growth. We have improving economic data on pretty much a global basis. It isn’t a boom by any stretch of the imagination but there is no doubt that the rate of change has recently been more positive. We also have a change in tax policy that should, if one believes the economists and politicians on the starboard side of the political divide, be positive for future growth. And stock punters certainly seem to believe both, that the incoming data is the beginning of a trend and that the tax bill is a big positive for growth – or at least corporate profits.
    The problem is that the other markets we monitor – which actually have a much better track record at predicting growth than stocks – are not participating. It is what Alan Greenspan and Ben Bernanke would call a conundrum. The Fed is busy hiking rates and shrinking its balance sheet (well promising to at least) because they see an economy at full employment and inflation that will be jumping just as soon as the Philips Curve really kicks in. And, now they have the added incentive to get moving on those rate hikes because Congress has passed a huge – huge I say – tax cut that will expand the deficit and produce even more growth. At least that’s the Keynesian theory, although the Republicans are selling this as more of a supply-side, Laffer curve, self financing tax cut. Personally, I think the Keynesian and Laffer adherents are both wrong. We are not that far right on the Laffer curve and more debt at this point isn’t the answer.

    This post was published at Wall Street Examiner on December 5, 2017.


  • China’s Infrastructure Boom Heading For Rapid Slowdown In 2018

    There have been signs since October’s Party Congress that China’s infrastructure boom was about to cool off as the leadership seeks to contain debt levels and focus on the quality not the quantity of growth. Subway building is one sector which has seen some high-profile project cancellations. In mid-November 2017, Caixin reported that China’s top economic planning authority, the National Development and Reform Commission, was ‘raising the bar for subway proposals’ – increasing scrutiny in terms of fiscal conditions, population and GDP. In recent weeks, we’ve seen two large subway projects shelved, one in Hohhot, the capital city of Inner Mongolia (worth 27 billion Yuan) and another in Baotou, another Inner Mongolian city (worth 30 billion Yuan). As Caixin noted.
    The cancellation of the Inner Mongolia subway projects is having a ripple effect in other cities. Several city governments, including those of Xianyang in Shaanxi province and Wuhan in Hubei province, said in statements that their subway plan are unlikely to win immediate approval under the central government’s crackdown on financial risks related to borrowing for such projects. The crackdown on local government debt, a key source of infrastructure financing, will have a knock-on effect on Chinese GDP growth. A difficulty for China’s central planners is that the infrastructure share of Chinese fixed asset investment has been on a rising trend, surpassing 20% during 2017 versus just over 15% in early 2014. While we’ve been expecting China’s infrastructure spend to slow next year, we are surprised by the rate of slowdown estimated by Bloomberg, which surveyed a large number of forecasters.

    This post was published at Zero Hedge on Dec 6, 2017.


  • Serially Charged Deutsche Bank Gets a Subpoena from Mueller

    If Deutsche Bank is trying to remove itself from scandalous headlines, it’s not doing a very good job at it.
    The German language newspaper, Handelsblatt, reported yesterday that Special Counsel Robert Mueller has subpoenaed bank records from Deutsche Bank relating to President Trump and his family members. Handelsblatt writes that ‘The former real-estate baron has done billions of dollars’ worth of business with Deutsche Bank over the past two decades, and First Lady Melania, daughter Ivanka and son-in-law Jared Kushner are also clients.’ The central focus of the Mueller probe is the Trump campaign’s involvement with Russia.
    On May 23 of this year, Congresswoman Maxine Walters and other House Democrats sent John Cryan, CEO of Deutsche Bank, a letter regarding its ties to the Trump family and Russia. The letter began:
    ‘We write seeking information relating to two internal reviews reportedly conducted by Deutsche Bank (‘Bank’): one regarding its 2011 Russian mirror trading scandal and the other regarding its review of the personal accounts of President Donald Trump and his family members held at the Bank. What is troubling is that the Bank to our knowledge has thus far refused to disclose or publicly comment on the results of either of its internal reviews. As a result, there is no transparency regarding who participated in, or benefited from, the Russian mirror trading scheme that allowed $10 billion to flow out of Russia. Likewise, Congress remains in the dark on whether loans Deutsche Bank made to President Trump were guaranteed by the Russian Government, or were in any way connected to Russia. It is critical that you provide this Committee with the information necessary to assess the scope, findings and conclusions of your internal reviews.
    ‘Deutsche Bank’s failure to put adequate anti-money laundering controls in place to prevent a group of traders from improperly and secretly transferring more than $10 billion out of Russia is concerning. According to press reports, this scheme was carried out by traders in Russia who converted rubles into dollars through security trades that lacked any legitimate economic rationale. The settlement agreements reached between the Bank and the New York Department of Financial Services as well as the U. K. Financial Conduct Authority raise questions about the particular Russian individuals involved in the scheme, where their money went, and who may have benefited from the vast sums transferred out of Russia. Moreover, around the same time, Deutsche Bank was involved in an elaborate scheme known as ‘The Russian Laundromat,’ ‘The Global Laundromat,’ or ‘The Moldovan Scheme,’ in which $20 billion in funds of criminal origin from Russia were processed through dozens of financial institutions.’

    This post was published at Wall Street On Parade on December 5, 2017.


  • How Tax Cuts Will Trigger Recession

    According to the more cynical pundits, government programs usually achieve the opposite of their intended goal. And sometimes they do.
    For example, Richard Nixon’s ‘War on Drugs’ is still in progress, but the drugs are definitely winning.
    ***
    Some government programs, however, are more effective. Firefighters are doing a pretty good job extinguishing fires. The US Coast Guard saves lives every day. Public school teachers educate students who would rather be elsewhere.
    And then there’s our increasingly dysfunctional Congress. Where to begin?
    I’ve written recently how Congress’s new tax plan misses a chance to boost economic growth. Now I think it may be even worse. Instead of merely failing to stimulate growth, the tax changes could actually launch a recession. I’ll tell you why in a moment.

    This post was published at Mauldin Economics on DECEMBER 5, 2017.


  • The Corrupt Origins of Central Banking

    Central banking has been a corrupt, mercantilist scheme and an engine of corporate welfare from its very beginning in the late 18th century. The first central bank, the Bank of North America, was “driven through the Continental Congress by [congressman and financier] Robert Morris in the Spring of 1781,” wrote Murray Rothbard in The Mystery of Banking (p. 191). The Philadelphia businessman Morris had been a defense contractor during the Revolutionary War who “siphoned off millions from the public treasury into contracts to his own … firm and to those of his associates.” He was also “leader of the powerful Nationalist forces” in the new country.
    The main objective of the Nationalists, who were also known as Federalists, was essentially to establish an American version of the British mercantilist system, the very system that the Revolution had been fought against. Indeed, it was this system that the ancestors of the Revolutionaries had fled from when they came to America. As Rothbard explained, their aim was
    To reimpose in the new United States a system of mercantilism and big government similar to that in Great Britain, against which the colonists had rebelled. The object was to have a strong central government, particularly a strong president or king as chief executive, built up by high taxes and heavy public debt. The strong government was to impose high tariffs to subsidize domestic manufacturers, develop a big navy to open up and subsidize foreign markets for American exports, and launch a massive system of internal public works. In short, the United States was to have a British system without Great Britain. (p. 192)

    This post was published at Ludwig von Mises Institute on Dec 4, 2017.


  • Fed Chair Janet Yellen Urges Congress to Monitor U.S. Debt As She Steps Down (NOW A Warning??)

    This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
    Federal Reserve Chair Janet Yellen’s final speech to Congress (Joint Economic Commitee) reminded me of the scene in the movie Death Becomes Her where Meryl Streep swallows a magic potion and Isabella Rosselini then says ‘Now a warning.’
    Yes, Yellen warned Congress that they should monitor the US debt load, now at $20.6 trillion, up from $9.5 trillion in Q2 2008. She also called on Congress to adopt policies that will promote investment, education and infrastructure spending.
    Yes, US public debt outstanding has more than doubled since Team Bernanke/Yellen began quantitative easing (QE) back in September 2008.

    This post was published at Wall Street Examiner on December 4, 2017.


  • Plunder Capitalism

    I deplore the tax cut that has passed Congress. It is not an economic policy tax cut, and it has nothing whatsoever to do with supply-side economics. The entire purpose is to raise equity prices by providing equity owners with more capital gains and dividends. In other words, it is legislation that makes equity owners richer, thus further polarizing society into a vast arena of poverty and near-poverty and the One Percent, or more precisely a fraction of the One Percent wallowing in billions of dollars. Unless our rulers can continue to control the explanations, the tax cut edges us closer to revolution resulting from complete distrust of government.
    The current tax legislation drops the corporate tax rate to 20%. This means that global corporations registered in the US will be taxed at a lower income tax rate than a licensed practical nurse making $50,000 per year. The nurse, if single, faces in 2017 a 25% marginal tax rate on all income over $37,950.
    A single person is taxed at a rate of 33% on all income above $191,651. 33% was the top tax rate extracted from medieval serfs, and approaches the tax rate on US 19th century slaves. Such an upper middle class income as $191,651 sounds extraordinary to most Americans, but it is so far from the multi-million dollar annual incomes of the rich as to be invisible. In America, it is the shrinking middle and upper middle class incomes that bear the burden of income taxation. The rich with their capital gains from their equity holdings are taxed at 15%.

    This post was published at Paul Craig Roberts on December 4, 2017.


  • Trump’s Tax Cut – FDR Would Be Envious

    Authored by Tom Luongo,
    The first rule of politics is feather your own nest. President Trump’s tax cut proposal always had this in mind.
    Congress has passed a bill which tinkers at the edges but leaves most of Trump’s core proposal intact. It’s obvious to me that Trump has the political acumen of another brilliant U. S. politician, the loathsome Franklin Delano Roosevelt.
    Yeah, I’m not a fan of FDR. But I do respect his political skill in the same way I respect the way sharks hunt their prey.
    FDR repackaged Herbert Hoover’s Works Progress Administration as ‘The New Deal’ which set him on a course of near perpetual re-election thanks to the wealth redistribution it engendered.
    Am I saying the New Deal was nothing more than a vote-buying scheme? Yeah, pretty much. FDR knew that politicizing the Supreme Court and pushing the New Deal, even if he did it for the right reasons, would reshape the Federal election landscape for generations.
    Trump’s tax plan will have similar effects. And it’s why there was such staunch opposition to it in Congress.
    Democratic leadership understand that the triple-whammy of eliminating the State and Local Tax exemption, lowering corporate tax rate to 20% and incentivizing the on-shoring of corporate profits held overseas will gut their support at the electoral college level.

    This post was published at Zero Hedge on Dec 3, 2017.


  • Short Sellers Are Aggravating China’s Bond Rout – Regulators AWOL (For Now)

    After the Party Congress finished in October and China’s centrally planned markets were released (somewhat) from the vice-like grip which had prevailed during the proceedings, we noted the comment from Huachuang Securities that China’s bond holders may be about to get hit by ‘daggers falling from the sky’, referring to deleveraging. They were right, to some extent, as first the government bonds, then corporate bonds sold off during November. This was driven by the authorities tightening credit conditions and redemptions in Wealth Management Products, which led to some unravelling in the latter Ponzi scheme. However, as Bloomberg explains, another factor has been at work, a rise in short-selling, which might not please the central planners.
    While the nation’s debt market has no official measure of short sales, analysts say a surge in bond lending has been partially fueled by rising bearish bets. A record 1.82 trillion yuan ($274 billion) of notes has been lent out this year, 18 percent more than the total for all of last year, according to clearinghouse ChinaBond. Short sellers profit from falling bond values by selling borrowed notes and buying them back after prices fall. “This creates a vicious feedback loop — when institutions think bonds will fall, they borrow and sell, causing a plunge in the securities, which then drags futures down, and thus there’s more shorting,” said Wang Wenhuan, an analyst at Huachuang Securities Co. in Shanghai. “As investors are still quite cautious, there will likely be more bond borrowing in the near term as yields climb.”

    This post was published at Zero Hedge on Dec 2, 2017.


  • The Complete Idiot’s Guide To Being An Idiot

    Authored by MN Gordon via EconomicPrism.com,
    There are many things that could be said about the GOP tax bill. But one thing is certain. It has been a great show.
    Obviously, the time for real solutions to the debt problem that’s ailing the United States came and went many decades ago. Instead of addressing the Country’s mounting insolvency, lawmakers chose the expedient without exception. They kicked the can from yesterday to today.
    Presently, there are no good options left to fix the mathematics bearing down on us all. Hence, in the degenerate stage of an overburdened nation-state, style over substance is what counts. Without question, Congress and President Trump played their parts to push the bill with much bravura.
    On Tuesday, for example, President Trump, Senate Majority Leader Mitch McConnell, and House Speaker Paul Ryan held a White House meeting with two empty chairs. Apparently, Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi didn’t want to participate in a ‘show meeting.’ Thus, they made a spectacle of themselves and ditched the meeting.
    Indeed, their absence was all part of the show. Moreover, the entire episode was show; nothing more. At the time of this writing (Thursday night), the show continues on. The last we heard, the Senate vote had been delayed until Friday. By the time you read this it may be a done deal – or maybe not.
    Regardless, the tax bill is all quite meaningless when you have a fiat currency that’s been stretched out like silly putty. No doubt, this has propagated immense financial speculation while outrunning actual economic growth. The effect has manifested in strange and unexpected ways.

    This post was published at Zero Hedge on Dec 1, 2017.


  • Tax Plan Deceptions Come Under Scrutiny by Inspector General

    On April 20 of this year, U. S. Treasury Secretary Steven Mnuchin spoke about the Trump administration’s tax plan at the Institute of International Finance. (Watch the video here.) Mnuchin described how the plan would pay for itself without adding to the national debt. He stated:
    ‘The deal will pay for itself. Now, having said that, we fundamentally believe in dynamic scoring. So, as you know, static scoring – you change the tax code, you plug it in, you see what the cost is. So, you are correct, fundamentally you’re lowering taxes under a static score, it’s gonna cost money. Now, having said that, some of the lowering in rates is going to be offset by less deductions, in simpler taxes. So, some of it will be made up on that but the majority of it will be made up on in what we believe is fundamentally growth and dynamic scoring.
    ‘And, you know, these are huge numbers. I mean you could have as high as $2 trillion difference in revenues over a 10-year period, depending on what you think is going to be the growth function. So the plan will pay for itself with growth.’
    The United States Congress has already sentenced the next generation to a lower standard of living by virtue of its current $20.5 trillion in national debt. Just in the past fiscal year, the U. S. ran up a deficit of $666 billion. That follows deficits of $585 billion in 2016, $438 billion in 2015, $485 billion in 2014, $679 billion in 2013 and more than $1 trillion in deficits in each year from 2009 through 2012 despite extraordinary efforts to stimulate the economy following the 2008 Wall Street financial collapse.

    This post was published at Wall Street On Parade By Pam Martens and Russ Marte.


  • Nobel Laureate Stiglitz Says Bitcoin Should Be ‘Outlawed’

    Bitcoin has soared this year by more than ten-fold, defying all of the Wall Street veterans who have compared it to the Tulip Bubble and/or a Ponzi scheme. That doesn’t mean that Bitcoin is a legitimate investment; it just means that bubbles have no set expiration date.
    The Nobel laureate economist, Joseph Stiglitz of Columbia University, appeared on Bloomberg television yesterday and had this to say about Bitcoin:
    ‘One of the main functions of government is to create currency. And Bitcoin is successful only because of its potential for circumvention, lack of oversight. So it seems to me it ought to be outlawed. It doesn’t serve any socially useful function.’
    Consider the remarks Stiglitz made yesterday to our more detailed assessment along the same lines back in 2014. We wrote:
    ‘The business writers at Reuters are also dead wrong on Bitcoin being like other currencies whose ‘value depends on people’s confidence in it.’ Let’s take the U. S. dollar. Backing the use of the U. S. dollar as a world currency is the following: a Congress made up of 435 Representatives in the House and 100 Senators in the Senate; 535 people elected from all over the United States who have the power to tax the income of every American receiving wage, dividend, interest or even Social Security income at whatever rate they see fit in order to pay the Nation’s bills and debt obligations to other countries.

    This post was published at Wall Street On Parade on November 30, 2017.


  • US Gross National Debt Jumps $723 billion in 12 Weeks, Yellen ‘Very Worried about Sustainability of US Debt Trajectory’

    But only a few lost souls in Congress care. Even as lawmakers are trying to cobble together a tax-cut bill that would cut revenues by $1.5 trillion over ten years, the gross national debt has spiked $723 billion over the past 12 weeks since Congress suspended the ‘debt ceiling.’ It just hit $20.57 trillion, or 105% of GDP.
    Over the past six years, since November 2011, the gross national debt has surged nearly 40%, or by $5.8 trillion. Back in 2011, gross national debt amounted to 95% of GDP. Before the Financial Crisis, it was at 63% of GDP. There are no signs that the relentless rise in the debt is slowing down. On the contrary – the tax cuts are going to steepen the curve:
    ***
    In the chart above, note the last three debt-ceiling fights – the flat lines in 2013, 2015, and 2017, followed each time by an enormous spike when the debt ceiling was lifted or suspended, and when the ‘extraordinary measures’ with which the Treasury keeps the government afloat were reversed.

    This post was published at Wolf Street on Nov 30, 2017.


  • Corporate Tax Cuts: “The Seen & The Unseen”

    Since Donald Trump was elected President, the S&P 500 has rallied over 21% or nearly 500 points. In our opinion, a good portion of the gain is attributable to his promise, as well as congressional efforts, to reform the tax code. In particular, the proposed sharp reduction in the corporate tax rate has the equity market’s attention. At first blush, the simple logic driving equity investors appears reasonable.
    Appearances, however, can be deceiving, and history is littered with failed investors that banked on a faulty thesis. As such, instead of tripping head first into that same category, we decided to assume nothing and look at the proposed reduction in the corporate tax rate and historical data to better understand how the legislation might affect the economy and corporate earnings.

    This post was published at Zero Hedge on Nov 29, 2017.


  • Did Janet Yellen Just Recommend Buying Bitcoin

    Janet Yellen’s last semi-annual testimony before Congress as Fed Chair has just concluded, and as usual it was filled with long-winded platitudes, which were enough to make the blood of anyone actually listening to her slow-motion drawl, come to a boil.
    For one, Yellen’s hypocrisy hit bitcoinian levels when she had the temerity to say that she is ‘very disturbed’ about the trend toward rising inequality, noting that the central bank only has a ‘blunt tool’ that can’t be used to target certain groups. She’s right: the “blunt tool”, also known as a money printer, is can – and has – been repeatedly used to target a certain group: the ultra wealthy, i.e., the 0.1%, those who as Credit Suisse showed two weeks ago, have never been wealthier.
    And just to make sure all your blood has boiled over, Yellen added that the Fed is very focused on ‘very disturbing long-term trends’ in inequality adding that “our own focus”’ is on taking those trends and studying them… and making them bigger than ever she should have also added.
    Demonstrating her extensive skills of pointing out the obvious, Yellen also said that ‘we’re suffering from slow productivity growth,’ and there should be a focus on how that can be improved. It appears that the Fed is unaware that most employees spend several hours a day on Facebook, LinkedIn and SnapChat; it also appears that the Fed is unaware that most employers are aware of this, and is why there has been so little wage growth to “reward” this collapse in productivity.

    This post was published at Zero Hedge on 29, 2017.


  • Dollar Jumps As Yellen Goes Full Bernanke: Warns “Asset Valuations Are High” But Risk Is “Contained”

    Yes, departing Fed chair Janet Yellen used the ‘c’ word…
    Federal Reserve Chair Janet Yellen, in prepared remarks ahead of what may be her last appearance before Congress as head of the central bank, somewhat gloated at the steadily brightening picture for the U. S. economy she has left behind for Jay Powell (while downplaying the risks of financial instability).
    ‘The economic expansion is increasingly broad based across sectors as well as across much of the global economy,” Yellen said in prepared testimony to the bicameral Joint Economic Committee on Wednesday in Washington. ‘I expect that, with gradual adjustments in the stance of monetary policy, the economy will continue to expand and the job market will strengthen somewhat further, supporting faster growth in wages and incomes.”

    This post was published at Zero Hedge on Nov 29, 2017.