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US equity futures markets have just pushed to fresh overnight lows, with the last leg down seemingly triggered by the CAD recession print.

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We were told we needed to bail out Wall Street in order to save Main Street. Well the results are in…

Wall Street has never done better, and Main Street has never done worse.

From the Huffington Post:

Low-income workers and their families do not earn enough to live in even the least expensive metropolitan American communities, according to a new analysis of families’ living costs published Wednesday.

The analysis, released by the left-leaning Economic Policy Institute, is an annual update of the think tank’s Family Budget Calculator that reflects new 2014 data. The Family Budget Calculator is a formula designed to determine the income “required for families to attain a secure yet modest standard of living” in 618 different communities across the country that the U.S. Census Bureau defines as metropolitan areas. The formula uses data collected by the government and some nonprofit groups to measure costs of housing, food, child care, transportation, health care, “other necessities” like clothing, and taxes for families of 10 different compositions in these specific locales.

The updated Family Budget Calculator shows that even the most affordable metropolitan areas in the country are beyond the reach of millions of American families with incomes above the official federal poverty level. The official federal poverty level for a family of two parents and two children in 2014 was $24,008, according to the EPI. But the least expensive metropolitan area in the country for this family type is Morristown, Tennessee, where a family needs an income of $49,114, according to the Economic Policy Institute’s budget calculator.

The Economic Policy Institute also estimates that minimum-wage workers — who almost universally earn less than the federal poverty level — lack the income needed to make an adequate living in any of the communities surveyed, even if they are single and childless. The think tank notes that this includes minimum-wage workers living in cities or states with a higher minimum wage than the federal minimum of $7.25 an hour, or $15,080 a year for a full-time worker.

Even families with incomes closer to the middle of the earnings spectrum lack the means to maintain an adequate standard of living. The nation’s median household income was $51,939 in 2013 — the most recent year in which data were available — not much higher than the cost of living in the relatively inexpensive Morristown.

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 “You know what’s funny? If we owed the state money, they’d come take it and they don’t care whether we have a roof over our head. Our budget wouldn’t be a factor. You can’t say (to the state), ‘Can you wait until I get my budget under control?'”

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Cities are artificial constructs that depend almost entirely on outside resources for their survival.

Most cities do not have their own water supply. They import water and then export liquid waste.

Cities do not have their own food supply. They import food and export sewage.

Cities do not have their own power supply. They import power (via the grid) and consume it.

Cities are not sustainable. If cut off from the countryside, cities implode and their citizens perish.

Cities are far more susceptible to disease, unsanitary sewage problems, unclean air, polluted water and the rapid spread of infectious pandemics.

Cities are to humans what factory farms are to cattle, in other words. Living in a city is a confined, controlled existence, while living in the country is a “free-range” experience.

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As the financial markets plunge, many are desperately waiting to see if the Federal Reserve and Janet Yellen will decline to raise the Federal Funds Interest Rate from its current 0-0.25%. In light of the volatility shown by the Dow Jones Industrial Average and other economic indicators, Wall Street yearns for more quantitative easing in the form of QE4.

Peter Schiff and Stefan Molyneux discuss the latest news in the United States and global economy, including: the Chinese currency devaluation, fall of the Shanghai Stock Exchange Composite Index, mountains of debt, the Dollar compared to the Euro, the plunge in the price of Oil, Bernie Sanders popularity, Gold, Jon Stewart formerly of The Daily Show, minimum wage absurdity, the hatred of the rich and the economic future of the United States.

Schiff Gold: http://schiffgold.com

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  • Flanagan, is the son of a former NFL player who was drafted by Vince Lombardi, the legendary and former head coach of the Green Bay Packers
  • His dad, Vester Flanagan Sr., was a former lineman inducted into the Humboldt State University Hall of Fame in 1975.

The fired Virginia reporter who claimed responsibility for the on-air slayings of his colleague and her cameraman is the son of a former NFL player who was drafted by Vince Lombardi, the legendary former head coach of the Green Bay Packers.

Flanagan was raised as a Jehovah’s Witness in Oakland. His dad, Vester Flanagan Sr., was a former lineman inducted into the Humboldt State University Hall of Fame in 1975.

As TMZ Sports reported, as far as his professional career went, things didn’t work out quite so well.

Vester Flanagan Sr. was a ninth round draft pick by the Packers in 1961 when Lombardi coached the team. He played his college ball at Humboldt State. No comment has been made by the shooter’s father so far.

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It’s tempting to see similarities in last week’s global stock market mini-crash and the monumental meltdown that almost took down the Global Financial System in 2008-2009. The dizzying drop invites comparison to the last Bear Market that took the S&P 500 from 1,565 in October 2007 to 667 on March 9, 2009.

But this Bear is beginning in circumstances quite different from 2007-08. Let’s list a few of the differences:

1. Then: Markets and central banks feared inflation, as WTIC oil had hit $133 per barrel in the summer of 2008.

Now: As oil tests the $40/barrel level, markets and central banks fear deflation.

2. Then: China had a relatively modest $7 trillion in total debt, considerably less than 100% of GDP.

now: China’s debt has quadrupled from $7 trillion in 2007 to $28 trillion as of mid-2014, an astonishing 282% of gross domestic product (GDP)

3. Then: Central banks had a full toolbox of unprecedented monetary surprises to unleash on the market: TARP, TARF, BARF (OK, that one is made up) rescue packages and credit guarantees, quantitative easing (QE), zero interest rate policy (ZIRP) and direct purchases of mortgages, to name just the top few.

Now: The central bank toolbox is empty: every tool has already been deployed on an unprecedented scale. Every potential new program is simply a retread of QE, yield curve bending, asset purchases, etc.–the same old bag of tricks.

4. Then: Central banks had a relatively clean slate to work with. Interventions in the market and economy were limited to suppressing interest rates in the post-dot-com meltdown era.

Now: Central banks have never stopped intervening since 2008. The market is in effect a reflection of 6+ years of unprecedented central bank interventions. Rather than a clean slate, central banks face a global marketplace that is dominated by incentives to speculate with leveraged/borrowed money established by 6 years of central bank policies.

5. Then: Interest rates had rebounded from the post-dot-com lows in 2003. The Fed Funds rate in 2006-07 was above 5%, and the Prime Lending Rate exceeded 8%.

Now: The Fed Funds Rate has been screwed down to .25% for 6+ years–an unprecedented period of near-zero interest rates.

6. Then: The average 30-year mortgage rate was above 6% from October 2005 to November 2008.

Now: Mortgage rates have been under 4% in 2015.

7. Then: The U.S. dollar only soared in financial crises as capital flowed to safe havens in late 2008-early 2009 and again in 2010.

Now: The U.S. dollar began a 20% increase in mid-2014, in the midst of what was generally perceived as a solid global expansion.

image: http://www.oftwominds.com/photos2015/USD1-15a.png

8. Then: The U.S. dollar fell sharply from 2006 to 2008, and again in 2010 to 2011, boosting the overseas profits of U.S. corporations that account for 40% to 50% of total multinational corporate profits.

Now: The rising dollar has crushed the overseas profits of U.S. corporations. The soaring USD has also crushed emerging market currencies and stock markets, and forced China to devalue its currency, the the RMB (yuan)–a devaluation that triggered the current global meltdown in stocks.

9. Then: The global boom 2003-2008 was widely viewed as a tide that raised all ships.

Now: Central bank policies are recognized as engines of inequality that have widened income and wealth inequality for 6+ years.

Are there any conditions now that are actually better than those of 2008? Or are conditions now less resilient, more fragile and more dependent on unprecedented central bank interventions?
Read more at http://www.maxkeiser.com/2015/08/why-the-bear-of-2015-is-different-from-the-bear-of-2008/#fX15oCBzjLhcagJT.99

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Take your pick–here’s three good reasons to engineer a “crash” that benefits the few at the expense of the many.
There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who’s to say this crash isn’t rigged? A few things about this “crash” (11% decline from all time highs now qualifies as a “crash”) don’t pass the sniff test.

more here: http://charleshughsmith.blogspot.com/2015/08/what-if-crash-is-as-rigged-as.html

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The CNBC bubble headed bimbos and brainless stock touting twits will be in ecstasy today as the ever predictable rebound is under way. The market will soar by over 500 points at the opening as the excuse of the day is China’s desperate interest rate cut to try and stem their downward spiraling economy and markets. The Wall Street captured boob tube brigade will tell their almost non-existent viewership that all is well. The terrifying plunge is in the past. The economy is great. Housing is strong. Stocks are now a bargain. It’s the best time to buy.

Now for some factoids. Six of the ten largest point gains in the history of the stock market occurred between September 2008 and March 2009. That’s right.

 

During one of the greatest market collapses in history, the market soared by 5% to 11% in one day, six times. Here are the data points:

2008-10-13: +936.42

2008-10-28: +889.35

2008-11-13: +552.59

2009-03-23: +497.48

2008-11-21: +494.13

2008-09-30: +485.21

Do you think these factoids will be shared with the public today on the stock bubble networks? Not a chance.

The mindset of the arrogant clueless investor is that by the end of today they will have recovered over 50% of their losses incurred in the last week. Even if they think the economy is headed into recession, they will hold on hoping they can recover 100% of their losses before selling. If they are really dumb and trained like a monkey to BTFD, they will buy some Apple, Netflix, Amazon and Tesla today. Buying the dip has worked for the last six years. It will surely work this time.

 

If you are a critical thinking awake individual who can see the wheels are coming off this debt dependent bus to nowhere, you would take the opportunity to sell into today’s dead cat bounce.

If you choose to believe the shills, shysters and hucksters paraded on the corporate MSM over the last two days, you will end up like millions of other muppets.

http://www.theburningplatform.com/2015/08/25/btfd/

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America’s easy credit bubble started in 2001. Rome’s prior to 10 BC. We know the results of both.

Is China now blowing a huge credit bubble which will lead to a giant crash down the line?

Pettis thinks so …

http://www.washingtonsblog.com/2015/08/the-real-reason-chinas-economy-is-crashing.html

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And a U.S. news service didn’t have the balls to report it. From UK Reuters – the U.S. media has not reported this:

S&P 500 and DOW Circuit Breakers Hit

They let the market run when it’s spiraling higher non-stop, but they can’t take it when the forces of nature take the market back the other way. This country is just as bad, if not worse, than China…

NYSE circuit breaker

Blame it on China. Ignore the fact that the primary source of all of the world’s bubbles is the U.S. dollar bubble. How’s that interest hike looking next month, Janet?

The more I considered all of the evidence, the more I am convinced that China knew exactly what it was doing when it initiated its yuan devaluation. It knew that the bubbles in the U.S. were being driven by the U.S. dollar and debt soured carry trades.

China was the first to fold its cards and sprint for the exist – before the exit became too crowded to get out. Everyone was looking at their Treasury holdings – their cards laying face-up on the table. It was the trump cared in their hand that no one saw coming…

Well played, China.

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‘The photograph shows five men harvesting opium a couple of hundred metres from Camp Bastion perimeter defences, seen in the foreground.

Not only was this illegal drug production being carried out in the shadow of ISAF’s Main Operating Base, it was being done under the protection of British soldiers. Her Majesty’s Armed Forces (Army and RAF) were protecting this man’s cash crop from illicit ‘taxation’ by the Afghan National Police or Army.

The duplicity is in what the Ministry of Defence tell people we are doing, and what we are actually doing. As this photo was taken there was a World Service edition of ‘From Our Own Correspondent’ playing. The particular BBC correspondent, Quentin Sommerville, was ‘embedded’ with British soldiers in Helmand, who were assisting in the destruction of poppy fields. This must raise the question as to why poppy fields on the edge of Bastion’s airfield were protected whilst another farmer’s crop in a neighboring valley was destroyed?’

Read more: Afghan Opium Harvesting Protected by British Occupation Forces

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Nestle has found itself more and more frequently in the glare of the California drought-shame spotlight than it would arguably care to be — though not frequently enough, apparently, for the megacorporation to have spontaneously sprouted a conscience.

Drought-shaming worked sufficiently enough for Starbucks to stop bottling water in the now-arid state entirely, uprooting its operations all the way to Pennsylvania. But Nestle simply shrugged off public outrage and then upped the ante by increasing its draw from natural springs — most notoriously in the San Bernardino National Forest — with an absurdly expired permit.

Because profit, of course. Or, perhaps more befittingly, theft. But you get the idea.

Nestle has somehow managed the most sweetheart of deals for its Arrowhead 100% Mountain Spring Water, which is ostensibly sourced from Arrowhead Springs — and which also happens to be located on public land in a national forest.

In 2013, the company drew 27 million gallons of water from 12 springs in Strawberry Canyon for the brand — apparently by employing rather impressive legerdemain — considering the permit to do so expired in 1988.

But, as Nestle will tell you, that really isn’t cause for concern since it swears it is a good steward of the land and, after all, that expired permit’s annual fee has been diligently and faithfully paid in full — all $524 of it

http://theantimedia.org/nestle-pays-only-524-to-exract-27000000-gallons-of-california-drinking-water/

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American Red Cross CEO Gail McGovern has long portrayed her organization as a beacon of openness, once declaring “we made a commitment that we want to lead the effort in transparency.”

But when the Government Accountability Office, the investigative arm of Congress, opened an inquiry last year into the Red Cross’ disaster work, McGovern tried to get it killed behind the scenes.

 “I would like to respectfully request that you consider us meeting face-to-face rather than requesting information via letter and end the GAO inquiry that is currently underway,” McGovern wrote in a June 2014 letter to Rep. Bennie Thompson, D-Miss.

McGovern sent the letter, which was obtained by ProPublica and NPR, after meeting with Thompson, the ranking member of the homeland security committee. At the request of Thompson’s office, the GAO had earlier that year started an inquiry into the Red Cross’ federally mandated role responding to disasters and whether the group gets enough oversight.

https://www.propublica.org/article/red-cross-ceo-tried-to-kill-government-investigation?utm_source=et&utm_medium=email&utm_campaign=dailynewsletter&utm_content&utm_name

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‘When Dr. Jack Wolfson, an Arizona cardiologist, spoke out recently regarding the potential dangers of vaccines in the wake of an artificial “measles” crisis at Disneyland last fall, he likely did not anticipate how aggressively he would be attacked by the Big Pharma vaccine-industrial complex.

As noted by NaturalNews editor Mike Adams, the Health Ranger, in a July 20 article, perhaps Wolfson should have seen the criticism coming. After all, Adams wrote, the vaccine pushers “routinely” accuse “anyone who questions the party line on vaccines as being a danger to society.”

Adams further observed, regarding Wolfson’s treatment:’

Read more: Modern-day ‘science’ demands absolute obedience and conformity to industry claims; all dissenters must be silenced and punished

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At this point, it almost feels like kicking someone while he’s down. Jeb Bush can’t even stand up to Donald Trump, let alone his own growing series of scandals.

In the latest revelation from David Sirota and team at International Business Daily, we learn that:

For Florida taxpayers, the move by the administration of then-Gov. Jeb Bush to forge a relationship with Lehman Brothers would ultimately prove disastrous. Transactions in 2005 and 2006 put the Wall Street investment bank in charge of some $250 million worth of pension funds for Florida cops, teachers and firefighters. Lehman would capture more than $5 million in fees on these deals, while gaining additional contracts to manage another $1.2 billion of Florida’s money. Then, in the fall of 2008, Lehman collapsed into bankruptcy, leaving Florida facing up to $1 billion in losses.

But for Jeb Bush personally, his enduring relationship with Lehman would prove lucrative. In 2007, just as he left office, Bush secured a job as a Lehman consultant for $1.3 million a year, Bloomberg reported.

Next time, please just ride off into the sunset and paint landscapes with your brother.

http://libertyblitzkrieg.com/2015/08/19/how-jeb-bush-funneled-pension-money-to-lehman-before-getting-a-1-3-million-a-year-consulting-job-at-the-firm/

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