‘And Just Like That NAFTA May Be Over’ – Mexico Cancels White House Meeting Following Trump’s ‘Wall Ultimatum’

It’s official. Mexico’s President Pena Nieto has pulled out of his scheduled White House meeting for later this month.
Earlier this morning President Trump tweeted that should Mexico determine they do not want to pay for the wall, they might as well cancel the meeting.
The U. S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers…
— Donald J. Trump (@realDonaldTrump) January 26, 2017

This post was published at shtfplan on January 26th, 2017.

Abandoned Wal-Mart To Reopen As Shelter For Illegal Immigrants With Tax-Dollar Funding

An abandoned Walmart in Brownsville, Texas will soon be home to 100’s of illegal immigrant “minors”, many of them late in their teen years, thanks to your federal tax dollars. According to a report from a local ABC affiliate in Brownsville, the facility is currently being converted into a shelter by a nonprofit organization called Southwest Key, which receives the majority of its funding from federal tax dollars via the Office of Refugees Resettlement.
A Southwest Key spokeswoman confirmed the facility is set to open on March. They said it’ll be to welcome unaccompanied minors who crossed into the U. S. illegally. It will be the 4th facility in Brownsville to shelter children, under the age of 17, who have crossed into the U. S. without an adult.
Southwest Key is federally funded by the Office of Refugees Resettlement. The group’s mission is to provide a safe environment for unaccompanied children while they wait to be reunited with a sponsor or relative in the U. S.
Southwest Key officials said children are supervised during their stay. The program ensures youngsters have a safe place to sleep, are fed, educated and also have access to healthcare and counseling services.

This post was published at Zero Hedge on Jan 26, 2017.

U.S. Wage Disparity Rises To New Multi-Decade High During Obama’s Last Year In Office

Update 2:
Some more clarity from Spicer, who is now backtracking on his words, telling reporters that slapping a 20 percent tax on imports from Mexico is just one of several options on the table for paying for a wall along the southern border.
Spicer said President Donald Trump has yet to make a final decision about how the U. S. will recoup the costs of his proposed border wall. Earlier Thursday that Trump wanted to slap a 20 percent tax on all imports from Mexico and predicted the tax would generate $10 billion a year.
He had told reporters on Air Force One that Trump has discussed the idea with congressional leaders and wanted to include the measure in a comprehensive tax reform package. But Trump’s chief of staff Reince Priebus said later that the administration has “a buffet of options” to pay for the wall.
Importantly, Spicer said the White House was not ready to roll out any border tax at this time, and that it will will continue to have open line of communication with Mexico after Mexican President Enrique Pena Nieto canceled plans to meet with President Trump; Spicer says cancellation was mutual decision.

This post was published at Zero Hedge on Jan 26, 2017.

Mexico vs. Trump – Let the Tariffs Begin!

This morning, President Trump tweeted, ‘The U. S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers…of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.’
News broke today, according to the Wall Street Journal, that the Mexican president officially canceled the meeting with President Trump.
The biggest question facing Trump’s proposed wall, blockade, barrier, or whatever you want to call it, is funding: who is going to pay or it?
It isn’t clear how much the wall would cost. Many Republicans and Democrats are hesitant to offer their full-fledged support without knowing the real price tag. Senate Majority Leader Mitch McConnell has surmised that the wall could cost anywhere from $12 to $15 billion dollars, according to Business Insider, but knowing Washington, the wall could quite easily cost 5 times that.

This post was published at FinancialSense on 01/26/2017.

Why Ben Bernanke Thinks The Fed Shouldn’t Shrink Its Balance Sheet

One of the more controversial topics to emerge over the past three weeks has been the “trial balloon” by various Fed presidents, most notably Bullard and Harker, suggesting that the time to start unwinding the Fed’s balance sheet is almost here. While much of the sellside has quickly piggybacked with their own analysis, many suggesting that such an action would not impact most asset classes (except for MBS), an assumption we frankly find ludicrous as the main reason for the current level on the S&P is precisely the $14 trillion in global central bank liquidity injections…

… so far there has not been an official statement by Janet Yellen, or any members of her closest circle. So in lieu of that, we will resort to the next best thing – the opinion of the man who inflated the world’s biggest central bank balance sheet bubble himself, Ben Bernanke, who addresses this topic in a note on his Brookings blog titled “Shrinking the Fed’s balance sheet”
Cutting to the chase, Bernanke is not at all impressed with that particular proposed normalization, to wit:

This post was published at Zero Hedge on Jan 26, 2017.

Trump Renegotiating NAFTA Will Punish US Consumers

On Monday (Jan. 23), President Donald Trump got right to work fulfilling one of his trade-related campaign promises: He scrapped the Trans-Pacific Partnership (TPP).
Up next on the proverbial chopping block: the North American Free Trade Agreement (NAFTA).
There are several routes the new president could take with this 22-year-old trade deal. He may not kill it completely.
Regardless, President Trump renegotiating NAFTA will have a lasting impact on the U. S. economy and, eventually, on your wallet as well.
But first…

This post was published at Wall Street Examiner by Casey Wilson ‘ January 26, 2017.

Warning: Deutsche Reports Global Economy Is About To Rollover – Episode 1188a

The following video was published by X22Report on Jan 26, 2017
Initial and continuing claims continue to surge. New home sales collapsed. The Dow hit 20,000 and the debt is about to hit 20 Trillion all at the same time. The stock market fueled by debt. Trump’s expected Ambassador says the EU will collapse. Deutsche Bank reports the global economy is about to rollover and world trade will decline. Be prepared for the inflationary depression.

What Theresa May Told Republicans Before Her Meeting With Trump Tomorrow

Ahead of her meeting with Trump tomorrow, British Prime Minister Theresa May joked that “opposites attract” and called on the US President to renew the “special relationship” between Britain and the United States and lead in a new, changed world. In the United States for what will be Trump’s first meeting with a foreign leader since he took office last week, May signaled a shift in foreign policy, bringing her position more in line with that of Trump.

This post was published at Zero Hedge on Jan 26, 2017.

Deflation Probability Drops to 0% for Next Five Years

Atlanta Fed’s ‘Deflation Probabilities’ index: that horrifying threat (lower prices) has been vanquished.
The scourge of consumer price deflation has been brandished furiously by central banks around the world in order to justify radical, scorched-earth monetary policies, including zero-interest-rate policy (ZIRP), the entire absurdity of negative-interest-rate policy (NIRP), and asset purchases not only of government bonds but also of everything else, depending on the central bank, including corporate bonds, stocks, asset-backed securities, and, as German politician Frank Schffler predicted with uncanny accuracy back in September 2011, ‘old bicycles.’
Central banks have also brandished the threat of other mayhem that could befall the earth if it weren’t for those policies, but the threat of consumer price deflation has played a critical role.
Well, those of you in the US, don’t worry: your overall prices, as determined by the Consumer Price Index, now have exactly 0% chance of dropping over the next five years, down from a probability of 14.1% in May last year.

This post was published at Wolf Street by Wolf Richter ‘ Jan 26, 2017.

Alex Jones’ InfoWars Offered White House Credentials

Things sure are changing in the White House press corps. According to a video posted on Wednesday, radio show host Alex Jones’s website Infowars, which has been accused of being “conspiracy theory and alt-right” by much of the established media, has been offered White House press credentials.
In the clip Jones explains:
Here’s the deal, I know I get White House credentials, we’ve already been offered them, we’re going to get them, but I’ve just got to spend the money to send somebody there. I want to make sure it’s even worth it. I don’t want to just sit there up there like ‘m in the media, look our people are there.’ People don’t understand this paradigm, we’re devolving in a good way, power from the federal government back to the people, back from the centralized MSM to the people, just like Trump said in his speech.

This post was published at Zero Hedge on Jan 26, 2017.

Baby Boomers Beware: Low Returns Ahead

Retirement planners often assume rates of return on clients’ portfolios between 6 and 7 percent right now. This time on Financial Sense Lifetime Income Series, we look at why this isn’t likely in our present situation, and what investors can do to protect themselves.
Retirees Face Difficult Challenges
We’re beginning to see the largest generation in US history start to retire and the next 20 years are likely to be high risk for Baby Boomers.
‘There are $10 trillion in retirement assets and, in the next decade, 60 million boomers age 70 and a half will have to draw from those IRA and 401(k) accounts,’ said Jim Puplava, founder and president of PFS Group.
This is significant because Boomers are entering retirement during a period of the lowest returns for both stocks and bonds that they’re likely to see in their lifetimes.
Couple that with the fact that life expectancy is going up, and Boomers may face the prospect of living longer with lower income.

This post was published at FinancialSense on 01/26/2017.

Wave Of State Department Personnel Resign, Are Fired As Tillerson Takes Control

Here's an updated State Department Org Chart.
Blue X's are unfilled appointee positions. Red X's are resignations. pic.twitter.com/gF5p0YGFKC
— Emily Roslin v Praze (@EmilyGorcenski) January 26, 2017

Update: according to a CNN report – so as always take with lots of salt – the story has shifted materially, because according to two senior administration officials, it wasn’t a resignation by the State Department officials, but more of a termination: “the Trump administration told four top State Department management officials that their services were no longer needed as part of an effort to “clean house” at Foggy Bottom.”
Patrick Kennedy, who served for nine years as the undersecretary for management, Assistant Secretaries for Administration and Consular Affairs Michele Bond and Joyce Anne Barr, and Ambassador Gentry Smith, director of the Office for Foreign Missions, were sent letters by the White House that their service was no longer required, the sources told CNN.
All four, career officers serving in positions appointed by the President, submitted letters of resignation per tradition at the beginning of a new administration. The letters from the White House said that their resignations were accepted and they were thanked for their service.
The White House usually asks career officials in such positions to stay on for a few months until their successors are confirmed.

This post was published at Zero Hedge on Jan 26, 2017.

GOLD DEMAND IS SURGING TO LEVELS NOT SEEN SINCE 2011 ALL TIME HIGHS

Is the gold market set to make a major comeback this year?
Following an up-and-down year in 2016 which saw the re-emergence of a gold bull market in January and then a slide into the second half of the year, data from gold Exchange Traded Funds indicate that a lot of money is moving back into the space.
2011 was the year gold reached its all-time high against the dollar when it climbed from $1325 at the end of January to over $1900 by early September. And during that year investments in the GLD ETF were also at record highs.

This post was published at The Daily Sheeple on JANUARY 26, 2017.

White House Reveals How Mexico May Pay For The Wall: A 20% Border Tax

BREAKING: Spicer tells me 20% tax on Mexican imports is NOT a policy proposal, but example of options how to pay for wall.
— Peter Alexander (@PeterAlexander) January 26, 2017

Update 2:
Some more clarity from Spicer, who is now backtracking on his words, telling reporters that slapping a 20 percent tax on imports from Mexico is just one of several options on the table for paying for a wall along the southern border.
Spicer said President Donald Trump has yet to make a final decision about how the U. S. will recoup the costs of his proposed border wall. Earlier Thursday that Trump wanted to slap a 20 percent tax on all imports from Mexico and predicted the tax would generate $10 billion a year.
He had told reporters on Air Force One that Trump has discussed the idea with congressional leaders and wanted to include the measure in a comprehensive tax reform package. But Trump’s chief of staff Reince Priebus said later that the administration has “a buffet of options” to pay for the wall.
Importantly, Spicer said the White House was not ready to roll out any border tax at this time, and that it will will continue to have open line of communication with Mexico after Mexican President Enrique Pena Nieto canceled plans to meet with President Trump; Spicer says cancellation was mutual decision.
It would seem that the Kochs – who are fervently opposed to the BAT proposal – made a few phonecalls.

This post was published at Zero Hedge on Jan 26, 2017.

French Finance Minister: “May Is Not In A Position To Negotiate With Trump”

With Theresa May – preparing to enact Article 50 officially starting the Brexit process from the EU – set to meet Trump tomorrow as the new US president’s first meeting with an international leader to lay the groundwork for a U. S.-U. K. trade deal, the outcome will provide the first test for how world leaders can deal with Donald Trump, who has put the world on edge with his recent push for isolationism and trade protectionism, culminating most recently with his tweet that Mexico’s president needn’t bother visiting if Mexico will not pay for the wall along the Mexican-US border.
‘As we rediscover our confidence together — as you renew your nation just as we renew ours — we have the opportunity, indeed the responsibility, to renew the special relationship for this new age,’ the U. K. prime minister will tell Republican lawmakers gathered in Philadelphia on Thursday, according to excerpts from her prepared remarks. ‘We have the opportunity to lead, together, again.’
As Bloomberg notes, the good news for May, who’s due to meet Trump at the White House on Friday, is that he’s eager to cement relations and nail down a U. K. trade deal too — for his own reasons. He’d like to further drive a wedge into a fractured Europe and strengthen at least one trade relationship as he exits the Trans-Pacific Partnership and prepares to renegotiate Nafta.

This post was published at Zero Hedge on Jan 26, 2017.

Gold and Silver Market Morning: Jan 26 2017 – Gold and Silver weakening on options and Shanghai closing!

Gold Today – New York closed at $1,200.10 on the 25th January after closing at $1,209.90 on the 24th January. London opened at $1,197.85today.
Overall the dollar was weaker against global currencies early today. Before London’s opening:
– The $: was weaker at $1.0732: 1 from $1.0724: 1 yesterday.
– The Dollar index was weaker at 100.11 from 100.31 yesterday.
– The Yen was weaker at 113.78:$1 from yesterday’s 113.69 against the dollar.
– The Yuan was stronger at 6.8755: $1, from 6.8766: $1, yesterday.
– The Pound Sterling was stronger at $1.2635: 1 from yesterday’s $1.2509: 1.
Yuan Gold Fix
Shanghai was trading today around 266.80 Yuan or in dollars, at today’s exchange rate, $1,206.95. The dollar was weaker across the board, but only slightly against the Yuan.
We correct ourselves and inform you that today is the last trading day before the ‘Year of the Rooster’ celebrations, which begin tomorrow and end next Thursday. Business will continue next Friday, there.
This marks the exit of Chinese demand from the global gold market for the next week.

This post was published at GoldSeek on 26 January 2017.

Beware, Dissenter to the Monetary Regime

In a cry of desperation, Tim Duy takes to Bloomberg to warn the world about the possibility of ‘hard-money’ advocates getting into the Fed. Why, there’s potential that new Fed governors might not be ‘divorced from political pressures.’ Wouldn’t that be a radical shift.
The hilarity of this article is that the ‘hard money’ label is being applied to defenders of a policy rule; specifically, John Taylor of ‘Taylor Rule’ fame. Yes, the advocates of formula based interest rate shifts, who deride the true hard money of the classical gold standard, are now in the extremist hard money camp.

This post was published at Ludwig von Mises Institute on Jan 26, 2017.