GLOBAL FOOD CRISIS: NASA Issues Stark Warning – California Drought Could Threaten United States Food Supply; Meanwhile The Water Supply In Brazil’s Sao Paulo Will Last Only 100 Days For 20 MILLION PEOPLE!
Are you prepared for a surge of Ebola cases in America after today’s elections? Rick Wiles says, “Get ready” for Ebola to return to newspaper headlines. Retired U.S. Army General Paul Vallely tells Rick that Barack Obama and his national security advisors are Muslim sympathizers and a serious national security threat. Later in the program, Bible prophecy author Mark Davidson tells Rick why he believes Iran will invade the Middle East, and that a four-nation alliance will produce the Antichrist.
Obozocare has been challenged in court since it was launched, with charges that it is unconstitutional, violates religious rights, invades privacy and unlawfully orders consumers to purchase a product.
Now, a new lawsuit by four Christian institutions argues the Obama administration is using the law to attack religious groups that oppose the White House’s promotion of abortion.
The plaintiffs allege “the purpose” of Obozocare’s mandate that employers pay for abortion-causing contraception and abortion “is to discriminate against religious organizations.”
SOMETHING FLARE-Y THIS WAY COMES: Arriving only a little late for Halloween, a flare-y sunspot is emerging over the sun’s northeastern limb. In the past 24 hours AR2205 has unleashed at least four M-class flares including this M6-flare recorded by NASA’s Solar Dynamics Observatory on Nov. 3rd at 22:40 UT:
You see what’s happening: tax revenues are unchanged while interest and Social Security costs keep rising. A relatively modest increase in the consumption tax triggered a major meltdown in Japan’s gross domestic product, and the planned increases in this tax from 8% to 10% are attracting criticism: Next consumption tax raise painting Abe into a corner.
If it turns out that the tax hike generates little additional revenue, Japan’s path to failed-state will be set: a stagnant economy generating stagnant tax revenues, a central state that funds half its spending with new debt, and rapidly rising social welfare and debt service costs that are already consuming all the tax revenue and then some.
Can Japan continue down this path indefinitely? Many believe the answer is “yes,” but we cannot base the next 10 years on the previous 25 years. Since Japan’s financial bubble popped in 1989, the Internet and China greatly boosted global growth, enabling Japan to live off its well-oiled export and debt machinery.
But the engines of global growth have reached diminishing returns, and a prolonged global recession looms just ahead. Playing games such as devaluing Japan’s currency and monetizing Japan’s ballooning debts with freshly issued money does nothing to fix the rot beneath the bright neon lights of superficial wealth.
Once the global economy rolls over into contraction, the tide will recede and Japan’s fiscal and monetary bankruptcy will become painfully apparent.
It is pretty clear by the surge in Nikkei VIX and JGB yield collapse that investors are focused on the current weakness as opposed to yesterday’s and Friday’s gains
Nine short months ago, the clever people running the show in Europe suggested a number of measures including “unpaid work for the young and unemployed up to 24 years old, so that companies would have a strong motive to hire young employees”. ‘Unpaid’ work sounded a lot like slavery to us then but it seems the arrogance is contagious as Canada – that bastion of freedom – suggests that the employment situation is so bad that young people should consider working for free. As The Globe & Mail reports, Bank of Canada Governor Stephen Poloz said ‘Adult children stuck in their parents’ basements because they can’t find adequate employment should take unpaid work to bolster résumés as they wait for the recovery to take hold’.
So a reminder for Canada’s elites, turning your nation’s young into slaves does not seem like a good solution to us…
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We can’t help but see the irony that one hand we have the US president demanding raising minimum wage (i.e riasing the cost of labor for those on the margin of employment) as Canada’s leadership see unpaid work (i.e. cutting the cost of labor) as a way to grow employment…
I wrote an article recently over at Voices of Liberty that lays out the very dire picture for those of us who have yet to retire. The gist of the article is that the Fed has effectively robbed the retired class of any hope for having enough of a nest egg to live off through the end of their lives if they want to retire at 65.
Some may argue well this past 10 years has just been an anomaly of low interest rates but they will come back i.e. normalize to higher levels here in the next couple years. Well let me show you why that is simply wrong.
Here is why interest rates will be perpetually low for the rest of our lives, why the inflation calculation has been changed to a dynamic formula (meaning they now change the inputs each quarter) and why those of us yet to retire are screwed.
You will see from the chart above we’ve had a fairly steady decline in interest rates since the late 1970′s about the same time that total debt began rising as a percentage of GDP. The inverse relationship between these two metrics is not coincidence, but of necessity. So you start to understand that interest rates are locked into a very low range forever or at least until total debt gets paid down, which none of us expect to ever happen. So with total debt greater than GDP and rising it’s SOL for future retirees and all other savers. Next stop will be negative interest rates which of course will need to be monetized. In chess they have a term called Zugzwang; a situation in which no matter what move you make you will be worse off than you are currently. I believe we may be in a Zugzwang now.
On November 1st, the first European bank has passed along these negative interest rates to its retail customers.
So if you maintain a balance of more than 500,000 euros at Deutsche Skatbank of Germany, you now have the privilege of paying 0.25% per year… to the bank.
We’ve already seen this at the institutional level: commercial banks in Europe are paying the ECB negative interest on certain balances.
And large investors are paying European governments negative interest on certain bonds.
Now we’re seeing this effect bleed over into retail banking.
It’s starting with higher net worth individuals (the average guy doesn’t have half a million euros laying around in the bank). But the trend here is pretty clear– financial repression is coming soon to a bank near you.
It almost seems like an episode from the Twilight Zone… or some bizarre parallel universe. That’s the investment environment we’re in now.
Bottom line: if you’re responsible with your money and set some aside for the future, you will be penalized. If you blow your savings and go into debt, you will be rewarded.
On the ECB’s own website, they say that negative interest rates will “benefit savers in the end because they support growth and thus create a climate in which interest rates can gradually return to higher levels.”
I’m not sure a more intellectually dishonest statement could be made; they’re essentially telling people that the path to prosperity is paved in debt and consumption, as opposed to savings and production.
These people either have no idea how economies grow and prosper, they’re outright liars, or they’re completely delusional.
I’m betting on the latter. Either way, this assault on windmills has only just begun.
As Don Quixote himself said, “Thou hast seen nothing yet.”
The European Central Bank (ECB) formally assumes its new role as the chief supervisor of EU banks on Tuesday (4 November), a major milestone in the creation of the bloc’s banking union.
The making of the banking union, whose legal framework was agreed by lawmakers inside two years, is the biggest shift of power over economic policy making since the introduction of the euro.
The chair of the Single Supervisory Mechanism (SSM), Daniele Nouy, who was speaking at a hearing with the European Parliament’s economic affairs committee on Monday, said the main task of the SSM would be to restore public confidence in the banking sector.
The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.
Yes, you read that right.