Category: Economics & Investing

B.B. sent in this article: 77.5 Million Households Are Not Paying Federal Income Taxes (CNBC) o o o D.S. informs us that Illinois to Postpone Pension Payments “We Are out of Money Now” (The Daily Sheeple) o o o From the Economics Team: Wal-Mart Tumbles Most in 15 Years After Predicting Profit Slump (Bloomberg) Hyperinflating Argentina Forces Government To Increase Banknote Denomination (Zerohedge) Repossessions spike 66% as foreclosure crisis lingers (CNBC) Sanders and His Followers are NOT Outliers (Mises Institute)

B.B. sent us this gem from Zero Hedge: The Problem Explained In 110 Words o o o R.V. spotted this: US Banks Build Defenses Against Downturn. R.V.’s comment: In spite of the title, the article is actually about how banks have taken down loan loss reserves to bolster profit, not about how they have increased the reserves. If I reduce the loan loss reserve, I have to back out the previously recognized expense, which has the effect of increasing profit. So if I increase my loan loss reserve, it is an expense, which would lower profit and reduce assets (loans …

Tesla Model X Buyers Get $35,000 Tax Break o o o The Fed Just “Discovered” Another $2.7 Trillion In Debt: “Quietly Boosted Total Credit” o o o Items from The Economics Team: Fed Quietly Raises Debt to 350% of GDP (Zero Hedge) China is Becoming a Big Red Flag for U.S. Stocks (Market Watch) The Greek Crisis (GreekCrisis.net)

B.B. sent this Reuters article: Big U.S. firms hold $2.1 trillion overseas to avoid taxes: study o o o An interesting price comparison chart: Gasoline prices, worldwide. (Venezuela has the lowest price, at just $0.06 per gallon!) Items from The Economics Team: It’s Time to Start Talking about RECESSION Fed Seems Ready to Deploy Negative Interest Rates in the Next Crisis The Worst Slump in Commodities Prices Isn’t Over

The drop in the labor force is coming from prime-age Americans, not aging retirees: Examining the 94.6 million Americans not in the labor force o o o RBS sent this: The Final Leaked TPP Text is All That We Feared o o o Anthony Wile: Let’s Get This Show on the Road (The Daily Bell) Items from The Economics Team: FOMC Minutes Confirm Economy Not Ready For Rate-Hike This Year, Worried About Inflation, “Global Risk” It’s Time For Negative Rates, Fed’s Kocherlakota Hints

Video is now available from the recent Mises Institute’s seminars on Political Correctness. o o o House votes to lift 40-year-old ban on US crude oil exports o o o Items from The Economics Team: Pimco Placing Its Bets: Emerging Market Currencies Set for Further Losses U.S. Consumer Confidence Flat in September (Gallup)

G.G. flagged this: Red flag: Insiders aren’t buying stocks o o o Also from G.G.: Dollar Death Sentence Items from The Economics Team: Deutsche Bank Preannounces Massive 3rd Quarter Loss (Zero Hedge) BanksMay Have $100 Billion in Exposure to Glencore (Market Watch) The Burden on Renters to Increase (MyBudget360)

Veteran content contributor B.B. suggested this piece at Zero Hedge: How and Why Banks Will Seize Deposits During the Next Crisis o o o Mac L. spotted this in The Wall Street Journal: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt o o o $3 trillion corporate credit crunch looms as debtors face day of reckoning, says IMF Items from The Economics Team: If you don’t like who I am, you won’t like what I do! (Zero Hedge) $45 Billion in Chinese Construction Projects Delayed (Reuters)

Silver Coin Premiums Soar Above 50% o o o Coming Soon: QE 4 o o o German Central Bank Publishes Gold Bar List. JWR’s Comment: I find it curious that while at the same time that governments and central banks berate gold as a “barbarous relic” that is entirely disconnected from their monetary policies, they seem quite concerned with keeping big piles of it, under lock an key. Items from The Economics Team: Greece Could Return to Bond Markets Soon After a Restructuring of its Debt, Tsipras Says (Wall Street Journal. Subscription required for full text) Question: What does Tsipras …

Inflation Watch – Butter Prices Hit All-Time Record High o o o Record 94,610,000 Americans Not in Labor Force; Participation Rate Lowest in 38 Years Items from The Economics Team: How Bad Can It Get? …and How Fast? (Zero Hedge) World’s Largest Shipowners Looking to Get Out of Greece (Zero Hedge) Government can’t tax an economy into prosperity! Chinese Execs Feel the Chill (Reuters) Is China growing at 7%? Really???

Just like clockwork, Spot Silver is emerging from the regular summer doldrums. It is noteworthy that the physical market is now very far removed from the spot and futures markets. There is a huge shortage of silver coins and small bars, and dealers are commanding huge premiums above spot. With spot silver now around $15.60 per ounce, you will be lucky to find even generic one-ounce rounds selling for less than $22 each, and U.S. Mint American Eagles are a couple of dollars more. o o o Record ATM Fees Rise Toward $5 o o o Jim Willie: Checkmate! In …

Vegas Casinos Fight to Buy Their Own Electricity o o o Ron Paul predicts a monumental crash in interview on Russia Today: Bubbles are all over the place. (Video.) Items from The Economics Team: 7 Ways to Sample Living with Less (Becoming Minimalist) Investors Brace for Market Fall (Reuters) U.S. Currency Laundered by Mexican Drug Cartles through the Middle East (Breitbart) The System Designed to Prevent Financial Crisis is Likely to Fail (MarketWatch) Asian Markets Fall as Fears Deepen Over China Slowdown (The Guardian) A reminder: In an economically interconnected world, there is no “containment”!

Reader Emily G. suggested this interesting New York Times article: Trading Meat for Tires as Bartering Economy Grows in Greece Items from The Economics Team: ConAgra Foods Lays Off 1,500 (Salt Lake Tribune) Chesapeake Energy Lays Off 740 (KFOR News Channel 4) Whole Foods Lays Off 1500 (CNBC) 20 Largest U.S. Layoffs in 2015 (ZeroHedge)