What Could Possibly Go Wrong

Anthony Wile: The Danger Beyond Employment Numbers

"When most people in a country have no money or land or even a house, and take no pleasure in working, and when only half of what may be considered the potential working population is formally employed, then it is probably not too strong a statement to say that the system itself is not producing satisfactory results and is even in danger of breaking apart entirely. The US's advantage throughout the post-War years was its dollar reserve currency; US officials could fund deficit spending by printing dollars without generating price inflation. Countries around the world had to hold dollars because they needed dollars to buy oil. This system is changing now." Continue reading →

Continue ReadingAnthony Wile: The Danger Beyond Employment Numbers

76% of Americans are living paycheck-to-paycheck

"Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday. Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all. Even more disappointing; The savings rates have barely changed over the past three years." Continue reading →

Continue Reading76% of Americans are living paycheck-to-paycheck

Obamacare Strikes: Part-Time Jobs Surge To All Time High; Full-Time Jobs Plunge By 240,000

"As a reminder: jobs have quantity and quality components. The quantity component was good enough to convince the 10 Year the taper is imminent (if not stocks, which continue to trade dislocated from any and all fundamentals). But how about the quality? In a word: not good. In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 - an all time record high. Full time jobs? Down 240,000. And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs. And there is your jobs 'quality' leading to today's market euphoria (if only for now)." Continue reading →

Continue ReadingObamacare Strikes: Part-Time Jobs Surge To All Time High; Full-Time Jobs Plunge By 240,000

Nigel Farage: There is a Gathering Electoral Storm

"With 62% youth unemployment in Greece, and with Spain not far behind, it is perhaps about time we were honest and admitted we are causing it ourselves. And yet your recipe is more bureaucracy. A youth guarantee scheme, another six billion for the Youth Employment Initiative, the setting up of the European Alliance for Apprenticeships backed up by the Quality Framework for Traineeships, and the list goes on and on and on of yet more highly paid civil servants setting up organisations that will achieve nothing. Until the euro is broken up, until you reverse the social market model you will not help youth unemployment." Continue reading →

Continue ReadingNigel Farage: There is a Gathering Electoral Storm

Portugal and Greece highlight eurozone fragility

"Political turmoil in Portugal and concerns about the pace of reform in Greece have raised fears that the eurozone crisis may be about to reignite. Nervous markets pushed up borrowing costs in Portugal to a painful 8 percent Wednesday (3 July) after the governing coalition of Pedro Passos Coelho saw the resignation of its finance and foreign ministers over the social and economic costs of austerity measures. Coelho's weakened position raises doubts about whether Lisbon - until recently routinely praised for putting into place a series of harsh budget-cutting measures - will be able to meet the terms of the its €78 billion bailout, agreed in 2011." Continue reading →

Continue ReadingPortugal and Greece highlight eurozone fragility

17 Dead, More than 200 Injured As Morsi Supporters Rally To Reject ‘Coup’

"It seems the turmoil in Egypt is far from over as hundreds of thousands (if not more than a million) protesters rallied on Friday to reject the military's removal and arrest of President Mohamed Morsi and other Muslim Brotherhood leaders. Egypt's health ministry reports that 17 people were killed and more 200 were injured in clashes between pro- and anti-Morsi protesters on Friday. You can watch live feeds from the protests here, and Business Insider has a correspondent on the ground. Some of the most intense clashes came on the October 6th bridge in Cairo, where gun shots were heard and a car has been set ablaze." Continue reading →

Continue Reading17 Dead, More than 200 Injured As Morsi Supporters Rally To Reject ‘Coup’

Egyptian nightmare for Erdogan

"True, the danger of a military coup in Turkey at the moment is close to zero, if only because Erdogan has locked up an entire army college (some 330 officers) on charges of plotting against him. But the parallels between the two countries run far beyond the superficial. For the record, so too did Egyptian still-President Mohammed Morsi try to purge the army last year, although he only removed a few top generals. The Turkish and the Egyptian governments - both democratically elected - have cracked down on the press, rolled back some civil liberties and planned to change the constitutions in ways many citizens found unacceptable." Continue reading →

Continue ReadingEgyptian nightmare for Erdogan

Wall Street Journal says Egypt needs a Pinochet

"Presumably, the WSJ thinks the Egyptians now have 17 years in which to think themselves lucky when any who dissent are tortured with electricity, raped, thrown from planes or – if they’re really lucky – just shot. That’s what happened in Chile after 1973, causing the deaths of between 1,000 and 3,000 people. Around 30,000 were tortured. Presumably, the WSJ hopes a general in the mold of Pinochet (or generals, as they didn’t break the mold when they made him) will preside over all this with the assistance of Britain and America. Perhaps he (or they) will return the favour by helping one of them win a small war." Continue reading →

Continue ReadingWall Street Journal says Egypt needs a Pinochet

US Obsession With the Importance of the Mideast and Solving the Israeli-Palestinian Conflict

"Recent developments in Egypt–with a sizeable minority of the population justifiably concerned about their rights at the hands of the majority of fundamentalist Islamists—show that arriving at liberal democracy from democracy may be a difficult and destabilizing prospect. The lesson from this messy process is not that the United States should intervene and remain until liberal democracies take hold in developing nations, but that the process is so chaotic that the United States should stay out of these nations, especially in the Middle East. This recommendation will be hard for the government of a swaggering superpower to stomach." Continue reading →

Continue ReadingUS Obsession With the Importance of the Mideast and Solving the Israeli-Palestinian Conflict

Venezuela inflation soars to record monthly high 6.1%; 35% annualized

"Last month's consumer price rises, up from 4.3 percent in April, took Venezuela's annualized inflation rate to a startling 35.2 percent, the highest in the Americas. A lack of hard currency has left businesses struggling to import key consumer products. Long queues at shops, and even scuffles, have become common as Venezuelans face shortages of basic goods from toilet paper to wheat flour. A devaluation of the bolivar currency in February, and heavy government spending throughout 2012 when Chavez won re-election, have exacerbated price pressures in Venezuela, which has for decades suffered high inflation." Continue reading →

Continue ReadingVenezuela inflation soars to record monthly high 6.1%; 35% annualized