69 Percent Of Americans Do Not Have An Adequate Emergency Fund

 

Do you have an emergency fund?  If you even have one penny in emergency savings, you are already ahead of about one-fourth of the country.  I write about this stuff all the time, but it always astounds me how many Americans are literally living on the edge financially.  Back in 2008 when the economy tanked and millions of people lost their jobs, large numbers of Americans suddenly couldn’t pay their bills because they were living paycheck to paycheck.  Now the stage is set for it to happen again.  Another major recession is going to happen at some point, and when it does millions of people are going to get blindsided by it.

Despite all of our emphasis on education, we never seem to teach our young people how to handle money.  But this is one of the most basic skills that everyone needs.  Personally, I went through high school, college and law school without ever being taught about the dangers of going into debt or the importance of saving money. Continue reading

Can a Divided America Survive?

Torn sign at a pro-Trump rally in Portland, Ore., June 4, 2017. (Reuters photo: David Ryder)

 

History has not been very kind to countries that enter a state of multicultural chaos.

The United States is currently the world’s oldest democracy.

But America is no more immune from collapse than were some of history’s most stable and impressive consensual governments. Fifth-century Athens, Republican Rome, Renaissance Florence and Venice, and many of the elected governments of early 20th-century Western European states eventually destroyed themselves, went bankrupt, or were overrun by invaders. Continue reading

China’s Red October

China’s Red October

 

The 19th National Congress of the Communist Party of China, CCP, will be held in the fall of 2017. The exact date has not yet been announced, but late October is a reasonable estimate. This will be the most important CCP meeting since the death of Mao Zedong and the rise of Deng Xiaoping in the late 1970s.

Communist societies such as China have a dual or parallel government structure. On one side is a normal government with a president, vice premier, cabinet ministers and other subordinate posts. On the other side is the CCP leadership consisting of a General Secretary, Politburo Standing Committee, Politburo, and Central Committee.

The seven-member Politburo Standing Committee runs the CCP. The General Secretary is the single most powerful person in the leadership. The conventional government is controlled by the CCP, which holds the real power.

Continue reading

Illinois Is Essentially Experiencing Its Own Private Great Depression

 

The state of Illinois has not passed a budget for close to three years.

Arguably it’s just as well because Illinois budgets for decades have been nothing but a moth-eaten collection of lies, one time deficits repeated endlessly, and financial wizardry statements designed to disguise Illinois’ real problems: failure to rein in spending coupled with a very business unfriendly environment.

As Illinois’ bond rating careens towards junk, Illinois Unpaid Bills Jumped to $14.3 Billion. Today, the state told contractors to halt roadwork other that required for safety. Continue reading

Coming Soon: The Mother Of All Debt Ceiling Crises

 

[Urgent Note: The nation’s future and a massive debt ceiling hangs in the balance as Trump pushes beyond the Comey hearings. That’s why I’m on a mission to send my new book TRUMPED! A Nation on the Brink of Ruin… and How to Bring It Back to every American who responds, absolutely free. Click here for more details.]

While the Imperial City is frozen in the Second Coming of Comey, it doesn’t mean that the Washington spending machine is on pause. In fact, the Treasury’s cash balance yesterday stood at only $153 billion — down by $130 billion just since the tax season peak was reached on April 25th.

Uncle Sam has been burning cash at a rate of $3.2 billion per calendar day since then and has no more room to borrow. That’s because the public debt ceiling is frozen at its March 15th level ($19.808 trillion) and the mavens at the Treasury Building have run out of borrowing gimmicks.

The countdown to the mother of all debt ceiling crises is now well underway — with the nation’s net debt sitting at $19.69 trillion. That figure, in turn, is up nearly $500 billion since FY 2016 ended on September 30 with the net debt at $19.22 trillion.

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Global credit crunch WARNING issued on debt bubble as current trends mirror 2008 crash

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A indicator tracking credit is following a worrying trend [Getty]

 

WARNING signals have been felt today after a key credit indicator mirrored the same pattern experienced ahead of the financial crisis of 2008, in a eerie sign that the global economy is heading for another downturn.

A key UBS credit impulse which monitors the changes in credit volume has tumbled by six per cent of GDP since last year.

It mirrors the same movement seen before the financial crisis 10 years ago, raising fears the global bubble could be about to burst and another credit crunch. Continue reading

UBS Has Some Very Bad News For The Global Economy

 

At the end of February we first highlighted something extremely troubling for the global “recovery” narrative: according to UBS the global credit impulse – the second derivative of credit growth and arguably the biggest driver behind economic growth and world GDP – had abruptly stalled, as a result of a sudden and unexpected collapse in said impulse. Continue reading

Spain’s hemorrhaging Banco Popular bought by Santander for €1

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Santander has bought Banco Popular for €1 [Getty]

 

BANKING heavyweight Santander has agreed to buy toxic lender Banco Popular for just €1, saving the giant from total collapse.

Spain’s biggest bank must now inject around £6.1billion worth of cash into the bankrupt lender to cover its book of disastrous property loans.

Continue reading

Financial Fragility Reaching a Critical Mass

 

There are several key factors that have contributed to the financial fragility of the masses and our economy today. First, is that over the past 30 years, globalization and technology have helped to reduce the number of middle-class jobs available domestically. Fewer jobs and superfluous workers have led to stagnating incomes for most. At the same time, living expenses for critical services that are domestically-produced like education, medical services, child-care, housing and fresh food have all strongly outpaced income gains. Continue reading

The Real Unemployment Number: 102 Million Working Age Americans Do Not Have A Job

 

Did you know that the number of working age Americans that do not have a job right now is far higher than it was during the worst moments of the last recession?  For example, in January 2009 92.6 million working age Americans did not have a job, but we just found out that in May the number of working age Americans without a job increased to just a shade under 102 million.  We’ll go over those numbers in more detail in a moment, but first I want to talk a bit about the difference between perception and reality.  According to the bureaucrats in the federal government, the “unemployment rate” in May was the lowest that we have seen in 16 years.  At just “4.3 percent”, we are essentially at “full employment”, and so according to them anyone that really wants a job should be able to find one pretty easily. Continue reading

JPMorgan Sounds Alarm On Size Of US Debt, Warns Of Financial Crisis

 

After yesterday Goldman mocked Trump’s budget (ironic as it was Trump’s ex-Goldman Chief Economic Advisor who conceived it) and said it had zero chance of being implemented, today it was JPM’s turn to share some purely philosophical thoughts on the shape of future US income and spending, which as we learned yesterday could balance only if the US grows for 10 years at a 3% growth rate, something it has never done, while slashing nearly $4 trillion in in spending, something else it has never done.

What caught our attention in the note by JPM’s Jesse Edgerton was his discussion on the thorniest issue surrounding the US: its unprecedented debt addition, what America’s debt/GDP will look like over the next 30 years, and whether there is any chance it could decline as conservatives in government hope will happen. Continue reading

Financial Crash Warning: Markets to ‘be hit’ by triple collapse ‘worse’ than 2008 crisis

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The next crash could be even bigger than 2008, according to Mike Maloney [GETTY]

 

THE next financial crisis will be worse than the collapse seen in 2008, and investors should seek shelter from the storm in precious metals and crypto currencies, according to an analyst who has predicted a triple market burst.

Mike Maloney said housing, bond and stock markets are now in for a big fall, after forming an ‘everything bubble’ which will have devastating effects when it bursts.

The crash will push investors into gold, silver and the likes of bitcoin, according to the gold analyst. Continue reading

Financial Weapons Of Mass Destruction: Top 25 US Banks Have 222 Trillion Dollars Derivatives Exposure

 

The recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes.  Today, the top 25 U.S. banks have 222 trillion dollars of exposure to derivatives.  In other words, the exposure that these banks have to derivatives contracts is approximately equivalent to the gross domestic product of the United States times twelve.  As long as stock prices continue to rise and the U.S. economy stays fairly stable, these extremely risky financial weapons of mass destruction will probably not take down our entire financial system.  But someday another major crisis will inevitably happen, and when that day arrives the devastation that these financial instruments will cause will be absolutely unprecedented.

During the great financial crisis of 2008, derivatives played a starring role, and U.S. taxpayers were forced to step in and bail out companies such as AIG that were on the verge of collapse because the risks that they took were just too great. Continue reading

Draghi Says Anyone Leaving the EU Must Pay But EU Will Not Refund Surpluses

 

In the Netherlands, the Forum For Democracy leader Thierry Baudet confronted Mario Draghi of the ECB asking that since he had said anyone leaving must pay the ECB and exit fee of whatever they owe, he said the Netherlands had €100bn surplus at the ECB they should get back is. Mario Draghi stated bluntly, NO! In other words,  the view at the ECB is what is yours is their’s and what is theirs is theirs.  We have put together a very important report on the Euro covering all the issues and why it is really doomed. Continue reading

Macron’s Victory May Be Disaster for Merkel

 

Angela Merkel was the first phone Emmanuel Macron made after the election.  My point about the election for Macron was the worst possible outcome for the Euro was not just reflected in yesterday’s outside reversal to the downside. Merkel has already made it clear that she will not relax  Eurozone spending rules to help Macron. The defeat of Le Pen has sealed the fate of Europe because there will be no reflection upon how to reform the EU to save Europe. Continue reading