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How Will You Cope With A Lower Standard Of Living?

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By Tyler Durden

Submitted by Tom Chatham via Project Chesapeake,

The forces are mounting that will eventually overwhelm most Americans and send their standard of living to unknown depths. Americans that have only known the post WWII prosperity are ill equipped and educated to deal with depression level living. Easy credit and instant gratification have created a nation of whining, self absorbed, entitlement minded people with no moral or mental toughness.

Doug Casey believes we are headed for what he calls a super depression created by the ending of a debt super cycle. The bigger the debt cycle the bigger the depression that follows. That’s how reality works and most people are not prepared for reality.

When this depression, which has already started, gets momentum, it will overwhelm the plans of a society that is expecting to get things like social security, pensions and payouts from retirement plans they have paid into for many years. All of those things will disappear almost overnight and leave society gasping and stupefied over what to do. Their reactions will be to yell and scream and try to identify who to blame but the only person they should blame is the one in the mirror.

Many very smart people have raised the alarm and done their best to warn the sleeping public, but those slumbering masses have ignored the warnings and hit the snooze button one more time. The masses do not understand economics, do not want to understand economics and they will pay dearly for that ignorance in the coming days.

When the real unemployment rate becomes common knowledge as it increases substantially, people will be left to survive on what resources they have saved up outside the banking system that cannot be stolen by the politicians and bankers. That is a key point here. The assets you have outside the system that cannot be stolen from you with a few key strokes on some computer.

Those hoping for some miraculous event that will send the U.S. back to the days of manufacturing might and jobs for all will never see it happen. Those days are gone. The west line theory tells us our economy will slow down and become more modest as the shipping center of the world moves west to the next powerhouse region which is Asia. This is what history teaches us.

When people suddenly wake up one morning and they have no job, their retirement is gone and they need to care for their family, what will they do? When government services have collapsed and they suddenly realize they are now living in a third world country with few government services, what will they do? When the banks are closed and only a select few connected people have any type of money or access to goods, what will they do?

This is the reality that many people will face in the future and they have no idea how bad it can get. They refuse to contemplate the harsh reality they will be living in and take steps to mitigate …read more

Source: How Will You Cope With A Lower Standard Of Living?

    

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The Push For Disarmament Begins

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By Tyler Durden

Authored by Jeremiah Johnson (Nom de plume of a retired Green Beret of the United States Army Special Forces (Airborne)) via SHTFPlan.com,

The headlines and news networks are awash with the shooting that occurred on Sunday in Florida – 50 dead and 53 hospitalized in the largest single mass-shooting incident in the history of the U.S. History in the making, and as Rahm Emmanuel put it, never let a crisis go to waste. The governor of Florida quickly declared a state of emergency, and as the FBI is labeling it as a “terrorist incident,” undoubtedly the federal presence is going to increase.

All of the machinery is in place and has been in place for quite some time, now. The harbinger of things to come was already outlined by Obama, on January 14, 2014 in a White House Press Conference:

“…we are not just going to be waiting for legislation in order to make sure that we’re providing Americans the kind of help they need. I’ve got a pen and I’ve got a phone, and I can use that pen to sign executive orders and take executive actions and administrative actions that move the ball forward…”

-Barack Hussein Obama I

Now in case anyone hasn’t noticed, the tempo of “town hall” meetings has been picked up quite a bit, especially Obama’s push for more gun control. In between using taxpayer dollars to campaign for Hillary Clinton and vacationing at Martha’s Vineyard, Obama has “resurrected” the push for gun control. Coincidentally, this mass shooting occurs barely even a week after Obama met with his plants and puppets to “discuss” gun control policies. This on the heels of the 9th Circuit Court on which on June 9, 2016 struck down the right to carry concealed as a right given under the U.S. Constitution. Undoubtedly this one will run right up to the Supreme Court for a liberal “reinterpretation” of the Second Amendment.

This latest incident will give him the juice to proceed with an executive order. We knew that it was inevitable: a pretext would be created to provide “justification” for either some form of gun registration (this always leads to gun confiscation) or the emplacement of martial law. Remember, the UN and the globalists are just waiting in the wings for the ability to take down the United States and confiscate the firearms.

On September 25, 2013 John Kerry signed the UN Arms Trade Treaty, “On behalf of President Obama and the United States of America.” Seems to this author that the United States of America didn’t really have much of a say-so on this issue. There are many who will say, “Well, in order for that treaty to be exercised, it will have to have the Senate approve it. Even then, it is onerous to the Constitution…Marbury vs. Madison, and all.”

Let us remind ourselves that Obamacare was not able to be rammed through as commerce, so they confirmed that it is a …read more

Source: The Push For Disarmament Begins

    

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Disney’s celebration tempered by Orlando crises

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As a crisis consumes his theme park in Orlando, Disney’s CEO Bob Iger is half a world away, overseeing the opening of the brand new Shanghai Disneyland.

Popular: Radical Islam in America | Graham Opposes Republican Leader | Guns in America

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Gawker fights back with DNC hacker scoop

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Gawker may be plagued with bankruptcy and a possible auction, but it rebounded with a scoop that purports to be the Democrats’ opposition research into Donald Trump.

…read more

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The Vanity Of Central Bankers And The Common Sense Rule

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By Tyler Durden

Submitted by Danielle DiMartino Booth via Money Strong LLC.,

Some wedding gifts just keep on giving, even after the celebrated union upon which they were bestowed has failed. That would certainly be true in the case of Carly Simon and James Taylor, whose notoriously rocky marriage ended in 1983. The timing of her November 1972 wedding marked more than a vow to Taylor, it coincided with Simon’s gift to pop music and the release of “You’re So Vain,” which ripped to the No. 1 spot on the charts and still retains the ranking of 82nd highest on Billboard’s Greatest Songs of All-Time. What a generous gift!

But, was it for the duo? Might it just be possible this lasting gift bred some not so blissful turbulence in the marriage? At the time, speculation swirled around the obviously vainglorious but mystery male subject. Was it Warren Beatty, David Geffen, Mick Jagger, Kris Kristofferson, Cat Stephens or James Taylor himself? The list went on and on. As of November 2015, Simon has only divulged that Beatty was one of three the lyrics reference. Taylor is not among the remaining two mystery men.

It’s a safe bet that a Taylor of a completely different stripe is far from being a mystery man in Janet Yellen’s appreciably less torrid past. In fact, the roles might even be reversed in Yellen’s world, with a slew of economists lamenting her vanity in rejecting them. The eminent John Taylor would be first in line, given that no less than his namesake rule used for devising monetary policy has been so explicitly and publically snubbed by the Chair.

The Taylor rule debuted in 1993 and continues to grow in its appeal thanks to the simplicity with which it can be executed. Though Taylor engaged the mandatory calculus to build his model, the inputs are elegant in their straightforward real world ease of application. At the risk of being overly simplistic, the Fed should set interest rates based on targeted vs actual employment and inflation levels; an ideal interest rate is consistent with full employment which is theoretically in sync with potential economic output.

If inflation is above target or if the economy is running too hot, as in above potential, the Fed should raise rates. If inflation is too low or economic growth too slow, well then the Fed should lower rates to encourage growth. In a perfect world, inflation and economic output are neither too hot nor too cold. That just right Goldilocks place in the ether calls for a ‘neutral’ interest rate of two percent, where the fed funds rate has historically hovered.

Here, the situation becomes perplexing in that it is the very simplicity of the rule which renders it an abomination to the reigning elite. Their preference since the crisis broke has been to embrace overly complicated models and deploy obfuscation to drive interest rates to the zero bound and beyond with blind abandon.

To add insult to injury, Yellen herself has conceded that the Taylor rule has …read more

Source: The Vanity Of Central Bankers And The Common Sense Rule

    

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10 key facts about the U.S. economy

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Unemployment is down, gas is cheap and America is growing. But just how strong is it?

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Source: 10 key facts about the U.S. economy

    

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Steve Liesman Shocker: "The Fed Is As Close To Capitulation As I’ve Ever Seen Them"

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By Tyler Durden

We were amazed in March when, during the last Fed press conference, CNBC’s Steve Liesman and traditional Fed cheerleader went so far as to ask a stunned Janet Yellen whether she has a credibility problem, to wit: “Does the Fed have a credibility problem in the sense that it says it will do one thing under certain conditions, but doesn’t end up doing it? And then, frankly, if the current conditions are not sufficient for the Fed to raise rates, well, what would those conditions ever look like?”

Janet Yellen’s jumbled 261 word response was one for the ages (and can be read here), but that particular exchange was nothing compared to what Steve Liesman said today when, in similar words he asked the same question, and got the same garbled response.

But it was what he said afterwards that was amazing. And we quote:

I think the first rate hike cycle is over. What Janet Yellen said in response to my question, and if you look at what has happened to the rate hike cycle is pretty profound. It’s as close to the Fed getting to capitulation as I’ve ever seen, about the efficacy of Fed policy, about the outlook for the economy.

I just want to read this: “I think all of us are involved in a process of constantly reevaluating where the neutral rate is.” Basically they see these headwinds to the economy as becoming part of the new normal. This five-eights decline to the Fed Funds rate outlook for 2018 is pretty profound and GDP remained the same. That’s very important. And I am going to give rick a blue ribbon because Rick represents the markets. Rick – the markets won. The Fed has completely capitulated to the market’s point of view. The Fed is not leading the markets here, the markets are leading the Fed. Every single time.”

To which Rick’s response is absolutely spot on: “there is no market. There is Janet. There’s Mario Draghi. There is Abe. There is no market left.”

And, just to validate this point, Gundlach chimed in that “The ‘rate hike cycle’ has left the building”

The full exchange (we apologize for the poor quality unfortunately CNBC has decided not to release that particular segment), is captured below.

Incidentally, all of the above is precisely what we warned last August when we reminded readers about the dire warning from the BOJ’s own tragic experience when Japan tried the same: it hiked rates from zero, only to capitulate seven months later when the economy imploded.

And then there is the “Ghost of 1937.” But where are not there quite yet…

So what happens next? Well the rate hike odds for July are plunging while the rate cut odds are start to rise. Do the math. And, of course, when that too fails, there is the Fed’s helicopter.

How to donate to Orlando victims and avoid scams

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The mass shooting in Orlando has drawn a flood of financial support. Here’s a rundown of how you can ensure your donation dollars are seized by schemers.

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Source: How to donate to Orlando victims and avoid scams

    

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No rate hike. Fed pares economic outlook

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The Federal Reserve didn’t raise interest rates Wednesday, a decision widely expected following a weak May jobs report.

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Goldman Is 0 For 2 In Predicting The Results Of Today’s Euro 2016 Games

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By Tyler Durden

It may come as a surprise to some, but having tried – and failed – to predict the performance of virtually every asset class in 2016, Goldman is now forecasting the results of games from Euro 2016. It will not come as a surprise, however, that out of today’s 2 games played so far, Goldman has been 0 for 2.

With Romania beating Switzerland 1-0, while Russia unexpectedly was defeated by Slovakia 1:2, Goldman’s prediction? A tie for both games.

Source: Goldman Sachs Global Investment Research

This may be bad news for France which is playing Albania shortly and which Goldman sees winning 3:1. Needless to say, if Goldman is off, there will be even more riots in Paris.

Also, we have bad news for Germany, which Goldman see winning everything.

Finally, considering Russia is near expulsion from the competition, we are confident that after the following news, the committee will issue a comparable warning to the English team as well.

BREAKING: Police use tear gas to disperse unruly English soccer fans in Lille at Euro 2016.

— The Associated Press (@AP) June 15, 2016

#EURO2016: Moment #ENG fans interrupt @harryfear‘s LIVE broadcast https://t.co/HrAPmXBLmz pic.twitter.com/pFKahzsZun

— RT (@RT_com) June 15, 2016

Show teaser normally

…read more

Source: Goldman Is 0 For 2 In Predicting The Results Of Today’s Euro 2016 Games

    

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