Wednesday, October 25, 2023

"A Look to the Heavens"

"Some spiral galaxies are seen nearly sideways. Most bright stars in spiral galaxies swirl around the center in a disk, and seen from the side, this disk can appear quite thin. Some spiral galaxies appear even thinner than NGC 3717, which is actually seen tilted just a bit. Spiral galaxies form disks because the original gas collided with itself and cooled as it fell inward. Planets may orbit in disks for similar reasons.
The featured image by the Hubble Space Telescope shows a light-colored central bulge composed of older stars beyond filaments of orbiting dark brown dust. NGC 3717 spans about 100,000 light years and lies about 60 million light years away toward the constellation of the Water Snake (Hydra)."

"We Haven’t Seen A Subprime Borrower Meltdown Of This Magnitude Since The Last Financial Crisis"

"We Haven’t Seen A Subprime Borrower Meltdown
 Of This Magnitude Since The Last Financial Crisis"
By Michael Snyder

"It is happening again. All over America, borrowers are getting behind on their payments. In particular, subprime borrowers are having a very difficult time paying the bills. Does that ring a bell? That should, because the last time we witnessed anything like this was during the last financial crisis. When things start to go bad, those at the bottom of the economic food chain feel it first, and that is why the numbers that have been coming out lately are so alarming.

For example, the percentage of subprime borrowers that are at least 60 days behind on their auto loans reached 6.11 percent last month. That figure is the highest ever recorded…"The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings. “The subprime borrower is getting squeezed,” said Margaret Rowe, senior director with Fitch." Let this sink in for a moment. We never saw a number this high during the Great Recession. And we never saw a number this high during the COVID pandemic. So this is really bad.

Credit card delinquency rates at small banks have also hit an all-time record high…"Credit Card Delinquency rates at small banks have reached 7.51%, the highest level ever recorded Once again, we never saw a number this high during the Great Recession. And we never saw a number this high during the COVID pandemic. Needless to say, it isn’t the wealthy that are getting behind on their credit card payments. Instead, it is ordinary Americans that are deeply struggling to pay the bills in this harsh economic environment.

Alarmingly, early-stage mortgage delinquencies are also spiking…"Meanwhile, early-stage delinquencies (30 and 60 days past due) continued to increase. In September, 48,800 (+5.1%) additional borrowers were 30-days late on their mortgage payments, while 8,700 (+3%) were 60-days late on their mortgage payments. These rates have been going up for the past four months and six months, respectively."

And foreclosures have started to jump at a pace that is absolutely breathtaking…"Home foreclosures are on the rise as Americans continue to grapple with the ongoing cost-of-living crisis. That is according to a new report published by real estate data provider ATTOM, which found that foreclosure filings – which includes default notices, scheduled auctions and bank repossessions – surged 28% in the third quarter to 124,539. Foreclosures are up 34% from the same time one year ago.

Just like we witnessed in 2008 and 2009, millions upon millions of Americans have gotten way too overextended.Even though everyone knew that the cost of living was rising much faster than paychecks were, a lot of people out there just kept spending like they always had been. They thought that things would eventually work out okay in the long run, but instead they just kept getting deeper and deeper into debt. Now a day of reckoning has arrived, and there are many that simply cannot keep up with all of their payments. And many are falling out of the middle class altogether.

In all my years of writing, I have never seen poverty increase in the U.S. as fast as it is rising right now. Recently, we learned that the percentage of Californians living in poverty jumped from 11 percent in 2021 to 16.4 percent last year…"Poverty has increased dramatically in California and the nation, a surge that new studies attribute to the expiration of pandemic-era federal relief programs such as the expanded Child Tax Credit. The spike has been particularly steep among Black and Latino Californians and children across all ethnicities. Researchers found 16.4% of Californians were living in poverty last year, up from 11% in 2021. The rate of child poverty more than doubled last year.

What will the final number for 2023 be? Will it be above 20 percent? The economy is moving in the wrong direction very rapidly now, and the war in the Middle East hasn’t even fully erupted yet. So what in the world will conditions look like once that happens? Our economic prosperity is completely and utterly dependent on cheap energy. Without it, everything will change. Once the flow of Middle Eastern oil stops due to the war, the price of oil is going to go completely nuts. And once that happens, a nightmare scenario could quickly unfold.

In a recent article, Tuomas Malinen detailed what he thinks might happen

1. The conflict escalates into a regional war with the U.S. becoming directly involved.
2. OPEC responds with an oil embargo.
3. Iran closes the strait of Hormuz.
4. The price of oil reaches $300/barrel.
5. Europe succumbs into a full-blown energy crisis due to LNG shortage.
6. Massive spike in energy prices reinvigorates inflation with central banks responding accordingly.
7. Financial markets and the global banking sector collapse.
8. Debt crisis engulfs the U.S. forcing the Federal Reserve to enact yet another financial market bailout.
9. Petrodollar trade collapses.
10. Hyperinflation emerges.

I don’t think that he is too far off the mark. We were already facing a major crisis even without the war in the Middle East. As I discussed the other day, U.S. banks are closing hundreds of branches and are laying off thousands of workers. And the truth is that the banks are the beating heart of our entire financial system.

We are so close to a full-blown economic meltdown. The only thing that could really save us now is if peace broke out in the Middle East. Unfortunately, this is not going to be a time of peace. This is going to be a time of war. So that means that extremely harsh economic conditions are ahead of us, and most Americans are completely and utterly unprepared for such a reality."

"We Are All In The Gutter..."

"We are all in the gutter, but some of us are looking at the stars."
- Oscar Wilde

The Daily "Near You?"

Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia.
Thanks for stopping by!

"Target Is Collapsing Faster Than You Think As Mass Store Closings Begin"

Full screen recommended.
Epic Economist, 10/25/23
"Target Is Collapsing Faster Than You 
Think As Mass Store Closings Begin"

"According to new reports, many Americans are about to lose their local Target stores. Every month, more Target store closings are being announced as the company faces one of its biggest crises since it was founded six decades ago. The retail chain is in a very poor financial shape, with sales on pace to be the worst they have ever been, one expert said. Revenue growth is also going down while its stock plunged to the lowest level since 2020. And even though the chain is blaming retail theft as the reason why even more stores are going to be shuttered this week, Bloomberg exposed that there’s a somberer reason behind the closures. Target’s business is crumbling down, and the latest data will show you precisely what’s going on.

Mike Baker, D.A. Davidson Senior Research Analyst, forecasted that Target’s financial health is likely to deteriorate even further in Q4. “It's hard to know if the worst was last quarter or this quarter or what exactly is going to be. But we think we're close to the worst,” he said during an interview with Yahoo Finance.

In Q3, the outlook became even gloomier, with consumer traffic trends significantly worsening. Target’s most recent financial report showed that guest visits declined by 5% year-over-year. That big slump was the main factor behind a surprising 5% drop in comparable-store sales during the quarter. Although performance has been going from bad to worse for quite some time now, the company’s executives have continued to overstate Target’s profit potential in the past few months, filling investors with hopes, only to crash them down after new data is online.

Now, its total revenue of over $24.5 billion came lower than analysts’ forecasts by over $400 million. Worse, Target’s profitability lagged other retailers. Its forward enterprise value to earnings before interest, taxes, depreciation, and amortization ratio stood at minus 10.39% while Walmart has 3.75% and Costco has 8.53%.

One more time, the corporation cited retail shrink as one of the main drivers of the losses. But when Bloomberg and Fox News investigators looked at law enforcement dispatch data from stores around Portland, the numbers told a very different story. According to official data from several locations around Portland, all of the stores that are being closed this week have lower property delinquency rates than other stores in the area. That means the retail giant is not eliminating the locations based on real theft risk as it said it was.

On Tuesday, the discounter announced it is closing three stores in the Bay Area for the same alleged reason. At the same time, lots of customers were surprised to find out that the oldest Target store in Manhattan would go out of business this week. With data disproving the company's claim that incidents of shoplifting or robberies were the cause of the shutdowns, the expert suggests that organized retail theft has become a convenient cover for internal problems such as bloated inventories, heavy discounting, and employee theft.

Recent problems were only added on top of the company’s messy pile of failures. These headwinds have made Target one of the cheapest retail stocks in the U.S. In November, the company will report the rest of its Q3 results, and investors will certainly be watching that announcement closely for signs of further weaknesses. At some point, executives will not be able to continue to mask the retailer’s performance, and the dozens of store closings a week might escalate to hundreds when shareholders realize Target will never be the way it was before this downturn started."
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'Life Is Never Fair..."

"Life is never fair,
and perhaps it is a good thing for most of us that it is not."
- Oscar Wilde

Greg Hunter, "2 Billion Will Die in New War Cycle"

"2 Billion Will Die in New War Cycle"
by Greg Hunter’s USAWatchdog.com

"Renowned geopolitical and financial cycle expert Charles Nenner has been warning a once every 120-year war cycle is coming, and with hostilities in the Middle East, it is clearly here. This cycle is for big wars such as WWI and WWII. These two wars were part of one big war cycle according to Nenner, and history is now repeating. Keep in mind, this war cycle comes with many countries in possession of nuclear arsenals. Nenner explains, “If you do cycles on war games and war cycles, you can calculate how many people are going to die in such a war. We discussed this in the past, and it now looks ugly. We are talking about a lot of people. There are so many things bad going on in the world, so I would like to not to tell you the number.”

Nenner has said this war cycle will top all other war cycles in body counts. Nenner predicts, “This war cycle is going to be worse than World War II. So, the question is what do we do and where do we go? A lot of my clients are not interested in ‘how do I make money,’ but where should we go. So, I am studying where are the best places to go. This is what I am trying to find out, and I have been very busy with this.”

Back to the death toll that Nenner knows is coming. So, I ask again, how many people will die in the current war cycle? Nenner blurts out, “It could be a quarter of the population of the world.” That’s roughly 2 billion people that could be killed in the current war cycle. Nenner goes on to say, “This may not be in the next war because this is going to continue for many years. It could be in the war after this. What I see now is the Chinese going to the Middle East and the United States helping Israel because if they don’t do that, nobody would trust the United States anymore. I guess the Chinese are going to watch how tough the United States is going to be because, otherwise, they take over Tiawan just like that. They may still do it because everybody is busy with Ukraine and Israel. . . . The U.S. is going to have to prove themselves, otherwise, they will be laughed off the world.”

Nenner also sees a war cycle coming to America through the Southern U.S. border. America will be attacked like never before in this war cycle. Nenner says, “There will be terror attacks in the U.S. and maybe much more because I don’t know how many of them are in there already. They are catching Iranians on a terror list. How did Iranians get to Mexico?”

Nenner thinks the dollar is stable–for now. Interest rates are going to continue to climb but will take a short downward path in the near term. Inflation is going to be going back up soon. Nenner is not a long-term buyer of stocks, and he still thinks the Dow’s downside is 5,000 and global war could take it there in a hurry. The greatest depression in history is still a few years away, but Nenner is 100% sure it is coming. Nenner’s cycles say it will most likely happen in the 2027-2028 time period. Nenner does like gold and silver and thinks gold will be well over $2,500 per ounce within a year and a half. Nenner’s best financial advice is “buy the 2-year Treasury,” and lock in a 5% return with zero risk. There is much more in the 44-minute interview."

Join Greg Hunter on Rumble as he goes One-on-One with 
renowned cycle analyst and financial expert Charles Nenner.

"Mundus Vult Decipi, Ergo Decipiatur"

"Mundus Vult Decipi, Ergo Decipiatur"
"Mundus vult decipi, ergo decipiatur," a Latin phrase, means "The world wants to be deceived, so let it be deceived." The saying is ascribed to Petronius, a Roman satirist from the first century, CE. "The pontifex maximus Scævola thought it expedient that the people should be deceived in religion; and the learned Varro said plainly, that "There are many truths, which it is useless for the vulgar to know; and many falsities which it is fit the people should not suppose are falsities." Hence comes the adage "Mundus vult decipi, decipiatur ergo."

"How It Really Is"

 

Bill Bonner, "Return-Free Risk"

"Return-Free Risk"
Bond market meltdown, housing begins to wobble,
 and what's that smell coming from the attic?
by Bill Bonner

Youghal, Ireland - "The force of a correction is equal and opposite to the delusion that preceded it. Given that the jackassery of the last 23 years was unprecedented in US history, so we can imagine that the correction will be also unparalleled.

Already, we have seen more losses in the bond market than ever before. As described yesterday, bonds have been going down in value since July 2020, with losses for the 10-year US Treasury bond of about 26% so far. That reflects losses from inflation (in the sense that the threat of inflation reduced bond prices)…but to get actual purchasing power losses for bond owners, you have to take off another 16% (that’s how much consumer prices have gone up since 2020) – for a total real wealth loss over 40%. (The math is a little tricky, because the inflation adjustment applies to the residual, current value, not to the face value of the bonds).

Bonds are meant to be safe-ish sources of income. They’re not meant to be gambles or speculations. The US 10-year Treasury, for example, is supposed to be money-in-the-bank. It is considered ‘risk free.’ Banks were required to hold treasuries as financial ballast. Retirees relied on them for their old age. Insurance companies use Treasury bonds to make sure they can meet their obligations. This loss of real value in Treasury debt shakes the entire financial edifice…from the humblest credit card balance to $33.5 trillion in loans to the federal government itself.

Unbalanced Sheets: So far, the losses are still on balance sheets…mostly unrecognized, sometimes hidden. Like the corpse of an aged relation whom no one bothered to visit, the horror of it has yet to be discovered. And the presumption remains, that if you hold to maturity, you won’t lose a dime. This is like saying: if you postpone your visit long enough, it won’t really matter…you’ll have forgotten all about Uncle Harry anyway.

But you can’t ignore bonds losses. The feds are running $2 trillion budget deficits. One way or another, those deficits need to be covered, currently, not in the far-distant future. Either higher interest rates bring forth more savings (and buyers of Treasury debt)…or more money-printing brings forth higher interest rates (as inflation expectations drive them up).

Either way, money is on the move. Trillions of dollars’ worth of it. Some assets disappear entirely as debtors cannot repay. But much wealth simply changes hands. The federal government, for example, must spend a lot more to cover its deficits. But it’s not all bad news, from the feds’ point of view. Inflation reduces the real value of federal debt.

Costs Skyrocket: Savers earn much more money. But borrowers struggle to keep up with higher financing costs. All up and down the great edifice of American capitalism cracks appear as adjustments need to be made. Zombies go out of businesses. Stock prices go down. Banks go bankrupt. Builders stop building.

Just look at what is happening in the housing market. The average mortgage rate in 2020 was under 3%. Now, it’s 8%. Who can afford that? Not many people. Housing sales are now down to levels not seen since the Mortgage Finance Crisis of 2008.

While interest costs have skyrocketed and affordability has sunk, house prices have actually gone up! The average house buyer can no longer afford to buy the average house. So, the average builder stays home. Housing starts are down 25% in the last two years…back to where they were when John Kennedy was elected – when the US had 150 million fewer people.

The lay of the financial land has fundamentally changed. Oceans have appeared on what was recently dry land. Rivers have dried up. Great chasms have opened on the prairies and orchids bloom at the North Pole. When you need to refinance loans, creditors want more interest. The US government itself is now paying five times as much interest on today’s debits as it did in 2020.

Dirty Harry: When you send your children to college – tuition goes up with inflation. If you were planning to pay for it with the yield on bonds you bought in 2020, you will need six or seven times as many of them to pay for the same year of college expenses.

Bread, gas, rent…all go up. Ten years ago, you could have bought the median house with about $52,000 in household income. Today, you need more than twice as much. And the median household income is only $75,000 – about $40,000 short. None of this is surprising. Or unsettling. It’s just what happens – normally – in a correction. And since the things in need of correction were abnormally large and malefic, so will the correction be abnormally severe and uncomfortable.

But there’s always more to the story…much more…which we’ll get to tomorrow. In the meantime, Dear Readers are advised to check on Uncle Harry."

Dan, I Allegedly, "We All Want The Same Thing"

Full screen recommended.
Dan, I Allegedly AM 10/25/23
"We All Want The Same Thing"
"Welcome back to IAllegedly! In today's video, we delve deep into the worldwide economic fears that are shaking up our everyday lives. From rising car insurance rates in California to the shocking losses of Norway's Sovereign wealth fund, the economy is a concern for us all. But together, we can navigate these uncertain times and find ways to make our money work for us."
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Adventures With Danno, "Strange Prices At Target!"

Full screen recommended.
Adventures With Danno, AM 10/25/23
"Strange Prices At Target!"
"In today's vlog, we are at Target and are noticing some strange prices on many different grocery options. We check out some of their good and gather brand products and compare price and quality. With grocery prices going up everywhere, we are looking at all options we have these days."
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Gregory Mannarino, "Be Ready For A Human Culling On An Epic Scale"

Gregory Mannarino, AM 10/25/23
"Be Ready For A Human Culling On An Epic Scale
What You Are Not Allowed To Know"
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o
Gregory Mannarino, PM 10/25/23
"Debt Market Danger Zone, 
Things Could Get Real Ugly Very Fast"
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"World War III Update 10/25/23"

Col. Douglas Macgregor, Straight Calls 10/25/23
"Russia Will Not Let The US Destroy Iran"
"Analysis of breaking news and in-depth discussion of current 
geopolitical events in the United States of America and the world."
Comments here:
o
Hindustan Times, AM 10/25/23
"USA's 3 Threats In 1 Day To Iran After Russia Minister's Trip,
 Warning Over Israel-Hamas War"
"Amid rising tension in the Middle East due to the Israel-Hamas war, the United States of America has raised its pitch against Iran. Accusing Tehran of orchestrating over a dozen attacks on American troops in Iraq and Syria in just a week, the US said that it was ready to retaliate "decisively" to protect its personnel and interests. This comes just days after Russia's foreign minister Sergey Lavrov visited Iran and warned USA that its military build-up in the Middle East risks escalating the conflict."
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Canadian Prepper, "Alert: USA Surrounds Iran; Underground IRGC Nuclear Forces On High Alert; Black Sea About To Erupt!"

Full screen recommended.
Canadian Prepper, 10/24/23
"Alert: USA Surrounds Iran; Underground IRGC 
Nuclear Forces On High Alert; Black Sea About To Erupt!"
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Tuesday, October 24, 2023

Jeremiah Babe, "This Is A Very Dangerous Time, There Is Nowhere To Run"

Jeremiah Babe, 10/24/23
"This Is A Very Dangerous Time,
 There Is Nowhere To Run"
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Gerald Celente, "Occupy Peace Or Die In War: What Side Are You On?"

Strong language alert!
Gerald Celente, Trends Journal, 10/24/23
"Occupy Peace Or Die In War:
 What Side Are You On?"
"The Trends Journal is a weekly magazine analyzing global current events forming future trends. Our mission is to present Facts and Truth over fear and propaganda to help subscribers prepare for What’s Next in these increasingly turbulent times."
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Musical Interlude: Neil H, "Spellbound"

Neil H, "Spellbound"

"A Look to the Heavens"

“What's happening behind those houses? Pictured here are not auroras but nearby light pillars, a nearby phenomenon that can appear as a distant one.
In most places on Earth, a lucky viewer can see a Sun-pillar, a column of light appearing to extend up from the Sun caused by flat fluttering ice-crystals reflecting sunlight from the upper atmosphere. Usually these ice crystals evaporate before reaching the ground. During freezing temperatures, however, flat fluttering ice crystals may form near the ground in a form of light snow, sometimes known as a crystal fog. These ice crystals may then reflect ground lights in columns not unlike a Sun-pillar. The featured image was taken in Fort Wainwright near Fairbanks in central Alaska.”

Chet Raymo, “The Spark of Life”

“The Spark of Life”
by Chet Raymo

"In a previous post I quoted Teilhard de Chardin referring to the discovery of electromagnetic waves as a "prodigious biological event." A biological event? What could he mean? The universe was awash with electromagnetic waves long before life appeared on Earth, or anywhere else in the universe. The cosmic microwave background radiation- the residue of the big bang- is electromagnetic. Starlight is an electromagnetic wave. You can "discover" electromagnetic waves by opening your eyes.

Of course, what Teilhard referred to was the conscious control of electromagnetic radiation by sentient biological creatures. Electromagnetic waves were predicted theoretically by the Scottish physicist James Clerk Maxwell in 1864, as he played with equations describing electric and magnetic fields. Then, twenty-two years later, electromagnetic waves were experimentally demonstrated by Heinrich Hertz, who in effect made the first radio broadcast and reception. At Hertz's transmitter a spark jumped back and forth between two metal spheres 50 million times a second. Across the room a similar spark was instantly produced at the receiver. Invisible electrical energy had passed through space at the speed of light.

A spark dancing between two spheres - an unpretentious beginning for the age of radio, television, mobile phones and wireless internet. That first transmitter and receiver had a basement-workshop simplicity about them. Hertz demonstrated the nature of electromagnetic waves with constructions of wood, brass and sealing wax.

Wood, brass, sealing wax and conscious intelligence. Here on Earth- perhaps throughout the universe- stardust gave rise to living slime. The slime complexified, became conscious. Invented mathematics, experimental science. Caused sparks to jump between metal spheres. Sent the signature of biological activity across a room. Across a planet. Across the universe. Prodigious!”

Free Download: Olaf Stapledon, "Sirius: A Fantasy of Love and Discord"

"But what a universe, anyhow! No use blaming human-beings for what they were. Everything was made so that it had to torture something else. Sirius himself was no exception, of course. Made that way! Nothing was responsible for being by nature predatory on other things, dog on rabbit and Argentine beef, man on nearly everything, bugs and microbes on man, and of course man himself on man. (Nothing but man was really cruel, vindictive, except perhaps the loathly cat). Everything desperately struggling to keep its nose above water for a few breaths before its strength inevitably failed and down it went, pressed under by something else. And beyond, those brainless, handless idiotic stars, lazing away so importantly for nothing. 

Here and there some speck of a planet dominated by some half-awake intelligence like humanity. And here and there on such planets, one or two poor little spirits waking up and wondering what in the hell everything was for, what it was all about, what they could make of themselves; and glimpsing in a muddled way what their potentiality was, and feebly trying to express it, but always failing, always missing fire, and very often feeling themselves breaking up as he himself was doing. Just now and then they might feel the real thing, in some creative work, or in sweet community with another little spirit, or with others. Just now and then they seemed somehow to create or to be gathered up into something lovelier than their individual selves, something which demanded their selves sacrifice and yet have their selves new life. But how precariously, torturingly; and only just for a flicker of time! Their whole life-time would only be a flicker in the whole of titanic time. Even when all the worlds have frozen or exploded, and all the suns gone dead and cold therewill still be time. Oh God, what for?"
 - Olaf Stapledon, "Sirius: A Fantasy of Love and Discord"
Freely download "Sirius: A Fantasy of Love and Discord",
by Olaf Stapledon, here:

"Albanian Proverb"

"When you have given nothing, ask for nothing."
- Albanian Proverb

"Banks Close 100s Of Branches And Layoff 1000s Of Workers As They Brace For Financial Meltdown"

Full screen recommended.
Epic Economist, 10/24/23
"Banks Close 100s Of Branches And Layoff 1000s 
Of Workers As They Brace For Financial Meltdown"

"U.S. banks are closing a large number of branches right now, - another ominous sign of the financial meltdown that has started to unfold. They are also laying off workers by the thousands in preparation for the chaos that is ahead, according to new reports. Record-high interest rates and turmoil in the real estate industry are adding an enormous amount of pressure on the nation’s biggest financial institutions. Even big names like JPMorgan, Wells Fargo, and Goldman Sachs have reported major losses in recent months, and they know a much bigger crisis is approaching. That’s why banks are getting very tight with their money, reducing their brick-and-mortar footprint, and slashing their headcounts as they fear mass withdrawals and more failures could happen in the coming winter. Experts say these are the very early stages of another global financial crisis, and many fully expect conditions to get even worse from now on.

In the first seven days of October, banks closed a whopping 54 branches, leaving an increasing number of Americans without access to basic financial services. Bank of America shuttered 21 branches in the first week of October, according to a bulletin published by the Office of the Comptroller of the Currency (OCC) on Friday. Similarly, Wells Fargo eliminated 15 branches, while U.S. Bank and JPMorgan Chase reported closing nine and three respectively.

More recently, Santander and City Bank closed nearly 20 branches each. Over the past twelve months, U.S. banks shut down over 3,100 locations, according to S&P Global. From 2021 to 2022, they closed a net 2,927 branches, which represented a 38% increase from the prior year. Moreover, in the open branches, there are fewer staff members around as well. A fresh CNBC report exposed that the most popular banks in America are laying off staggering numbers of workers – and some of the deepest cuts are yet to come. The six largest U.S. banks have cut a combined 20,000 positions so far this year, according to company filings. “Banks are cutting costs where they can because things are really uncertain next year,” Chris Marinac, research director at Janney Montgomery Scott, noted.

The sharpest cuts have happened at Wells Fargo and Goldman Sachs, institutions that are wrestling with revenue declines in key businesses. They each have laid off roughly 5% of their workforce in the past 10 months. At Wells Fargo, job cuts started to rise after the bank announced a strategic shift away from the mortgage business. And although the bank cut 50,000 employees in the past three years as part of CEO Charlie Scharf’s cost-cutting plan, the firm isn’t done shrinking headcount, executives said Friday. There are “very few parts of the company” that will be spared from cuts, said CFO Mike Santomassimo.

All of these developments indicate that the banking industry is in serious trouble. And economic turbulence is likely to aggravate matters in the financial world during the final months of the year. U.S. banks have a lot to worry about right now, and we should definitely enjoy the relative stability that has prevented markets and institutions from collapsing up until this point. The truth is that conditions are getting increasingly unsustainable, and things will become extremely chaotic far sooner than most people imagine."
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The Daily "Near You?"

Wichita Falls, Texas, USA. Thanks for stopping by!

"Evil Walks Among Us: Monsters with Human Faces Wreak Havoc on Our Freedoms"

"Evil Walks Among Us: Monsters with
Human Faces Wreak Havoc on Our Freedoms"
by John & Nisha Whitehead

“But these weren’t the kind of monsters that had tentacles and rotting skin, the kind a seven-year-old might be able to wrap his mind around - they were monsters with human faces, in crisp uniforms, marching in lockstep, so banal you don’t recognize them for what they are until it’s too late.” - Ransom Riggs, "Miss Peregrine’s Home for Peculiar Children"

"Enough already. Enough with the distractions. Enough with the partisan jousting. Enough with the sniping and name-calling and mud-slinging that do nothing to make this country safer or freer or more just. We have let the government’s evil-doing, its abuses, power grabs, brutality, meanness, inhumanity, immorality, greed, corruption, debauchery and tyranny go on for too long. We are approaching a reckoning.

This is the point, as the poet W. B. Yeats warned, when things fall apart and anarchy is loosed upon the world. We have seen this convergence before in Hitler’s Germany, in Stalin’s Russia, in Mussolini’s Italy, and in Mao’s China: the rise of strongmen and demagogues, the ascendency of profit-driven politics over deep-seated principles, the warring nationalism that seeks to divide and conquer, the callous disregard for basic human rights and dignity, and the silence of people who should know better. Yet no matter how many times the world has been down this road before, we can’t seem to avoid repeating the deadly mistakes of the past.

This is not just playing out on a national and international scale. It is wreaking havoc at the most immediate level, as well, creating rifts and polarities within families and friends, neighborhoods and communities that keep the populace warring among themselves and incapable of presenting a united front in the face of the government’s goose-stepping despotism.

We labor today under the weight of countless tyrannies, large and small, disguised as “the better good,” marketed as benevolence, enforced with armed police, and carried out by an elite class of government officials who are largely insulated from the ill effects of their actions.

For too long now, the American people have rationalized turning a blind eye to all manner of government wrongdoing - asset forfeiture schemes, corruption, surveillance, endless wars, SWAT team raids, militarized police, profit-driven private prisons, and so on - because they were the so-called lesser of two evils.

Yet the unavoidable truth is that the government - through its acts of power grabs, brutality, meanness, inhumanity, immorality, greed, corruption, debauchery and tyranny - has become almost indistinguishable from the evil it claims to be fighting, whether that evil takes the form of terrorism, torture, drug trafficking, sex trafficking, murder, violence, theft, pornography, scientific experimentations or some other diabolical means of inflicting pain, suffering and servitude on humanity.

At its core, this is not a debate about politics, or constitutionalism, or even tyranny disguised as law-and-order. This is a condemnation of the monsters with human faces who walk among us. Many of them work for the U.S. government.

This is the premise of John Carpenter’s film "They Live", which was released thirty-five years ago and remains unnervingly, chillingly appropriate for our modern age. Best known for his horror film Halloween, which assumes that there is a form of evil so dark that it can’t be killed, Carpenter’s larger body of work is infused with a strong anti-authoritarian, anti-establishment, laconic bent that speaks to the filmmaker’s concerns about the unraveling of our society, particularly our government. Time and again, Carpenter portrays the government working against its own citizens, a populace out of touch with reality, technology run amok, and a future more horrific than any horror film.

In "Escape from New York," Carpenter presents fascism as the future of America. In "The Thing" a remake of the 1951 sci-fi classic of the same name, Carpenter presupposes that increasingly we are all becoming dehumanized.

In "Christine" the film adaptation of Stephen King’s novel about a demon-possessed car, technology exhibits a will and consciousness of its own and goes on a murderous rampage. In In the "Mouth of Madness," Carpenter notes that evil grows when people lose “the ability to know the difference between reality and fantasy.”

And then there is Carpenter’s "They Live," in which two migrant workers discover that the world is not as it seems. In fact, the population is actually being controlled and exploited by aliens working in partnership with an oligarchic elite. All the while, the populace - blissfully unaware of the real agenda at work in their lives - has been lulled into complacency, indoctrinated into compliance, bombarded with media distractions, and hypnotized by subliminal messages beamed out of television and various electronic devices, billboards and the like.

It is only when homeless drifter John Nada (played to the hilt by the late Roddy Piper) discovers a pair of doctored sunglasses - Hoffman lenses - that Nada sees what lies beneath the elite’s fabricated reality: control and bondage. When viewed through the lens of truth, the elite, who appear human until stripped of their disguises, are shown to be monsters who have enslaved the citizenry in order to prey on them.

Likewise, billboards blare out hidden, authoritative messages: a bikini-clad woman in one ad is actually ordering viewers to “MARRY AND REPRODUCE.” Magazine racks scream “CONSUME” and “OBEY.” A wad of dollar bills in a vendor’s hand proclaims, “THIS IS YOUR GOD.” When viewed through Nada’s Hoffman lenses, some of the other hidden messages being drummed into the people’s subconscious include: NO INDEPENDENT THOUGHT, CONFORM, SUBMIT, STAY ASLEEP, BUY, WATCH TV, NO IMAGINATION, and DO NOT QUESTION AUTHORITY.

This indoctrination campaign engineered by the elite in "They Live" is painfully familiar to anyone who has studied the decline of American culture. A citizenry that does not think for themselves, obeys without question, is submissive, does not challenge authority, does not think outside the box, and is content to sit back and be entertained is a citizenry that can be easily controlled.

In this way, the subtle message of "They Live" provides an apt analogy of our own distorted vision of life in the American police state, what philosopher Slavoj Žižek refers to as dictatorship in democracy, “the invisible order which sustains your apparent freedom.”

Tune out the government’s attempts to distract, divert and befuddle us and tune into what’s really going on in this country, and you’ll run headlong into an unmistakable, unpalatable truth: what we are dealing with today is an authoritarian beast that has outgrown its chains and will not be restrained.

We’re being fed a series of carefully contrived fictions that bear no resemblance to reality. Despite the fact that we are 17,600 times more likely to die from heart disease than from a terrorist attack; 11,000 times more likely to die from an airplane accident than from a terrorist plot involving an airplane; 1,048 times more likely to die from a car accident than a terrorist attack, and 8 times more likely to be killed by a police officer than by a terrorist , we have handed over control of our lives to government officials who treat us as a means to an end—the source of money and power.

As the Bearded Man in "They Live" warns, “They are dismantling the sleeping middle class. More and more people are becoming poor. We are their cattle. We are being bred for slavery.” We have bought into the illusion and refused to grasp the truth. From the moment we are born until we die, we are indoctrinated into believing that those who rule us do it for our own good. The truth is far different.

The powers-that-be want us to feel threatened by forces beyond our control (terrorists, pandemics, mass shootings, etc.). They want us afraid and dependent on the government and its militarized armies for our safety and well-being. They want us distrustful of each other, divided by our prejudices, and at each other’s throats. We are little more than expendable resources to be used, abused and discarded.

In fact, a study conducted by Princeton and Northwestern University concluded that the U.S. government does not represent the majority of American citizens. Instead, the study found that the government is ruled by the rich and powerful, or the so-called “economic elite.” Moreover, the researchers concluded that policies enacted by this governmental elite nearly always favor special interests and lobbying groups.

In other words, we are being ruled by an oligarchy disguised as a democracy, and arguably on our way towards fascism - a form of government where private corporate interests rule, money calls the shots, and the people are seen as mere subjects to be controlled.

Rest assured that when and if fascism finally takes hold in America, the basic forms of government will remain: Fascism will appear to be friendly. The legislators will be in session. There will be elections, and the news media will continue to cover the entertainment and political trivia. Consent of the governed, however, will no longer apply. Actual control will have finally passed to the oligarchic elite controlling the government behind the scenes.

Sound familiar? Clearly, we are now ruled by an oligarchic elite of governmental and corporate interests. We have moved into “corporatism” (favored by Benito Mussolini), which is a halfway point on the road to full-blown fascism.

Corporatism is where the few moneyed interests - not elected by the citizenry - rule over the many. In this way, it is not a democracy or a republican form of government, which is what the American government was established to be. It is a top-down form of government and one which has a terrifying history typified by the developments that occurred in totalitarian regimes of the past: police states where everyone is watched and spied on, rounded up for minor infractions by government agents, placed under police control, and placed in detention (a.k.a. concentration) camps.

For the final hammer of fascism to fall, it will require the most crucial ingredient: the majority of the people will have to agree that it’s not only expedient but necessary. But why would a people agree to such an oppressive regime? The answer is the same in every age: fear. Fear makes people stupid.

Fear is the method most often used by politicians to increase the power of government. And, as most social commentators recognize, an atmosphere of fear permeates modern America: fear of terrorism, fear of the police, fear of our neighbors and so on. The propaganda of fear has been used quite effectively by those who want to gain control, and it is transforming the populace into fearful, compliant, pacified zombies content to march in lockstep with the government’s dictates.

This brings me back to "They Live," in which the real zombies are not the aliens calling the shots but the populace who are content to remain controlled. When all is said and done, the world of They Live is not so different from our own. As one of the characters points out, “The poor and the underclass are growing. Racial justice and human rights are nonexistent. They have created a repressive society, and we are their unwitting accomplices. Their intention to rule rests with the annihilation of consciousness. We have been lulled into a trance. They have made us indifferent to ourselves, to others. We are focused only on our own gain.”

We, too, are focused only on our own pleasures, prejudices and gains. Our poor and underclasses are also growing. Injustice is growing. Inequality is growing. A concern for human rights is nearly nonexistent. We too have been lulled into a trance, indifferent to others. Oblivious to what lies ahead, we’ve been manipulated into believing that if we continue to consume, obey, and have faith, things will work out. But that’s never been true of emerging regimes. And by the time we feel the hammer coming down upon us, it will be too late.

So where does that leave us? The characters who populate Carpenter’s films provide some insight. Underneath their machismo, they still believe in the ideals of liberty and equal opportunity. Their beliefs place them in constant opposition with the law and the establishment, but they are nonetheless freedom fighters.

When, for example, John Nada destroys the alien hypno-transmitter in "They Live" he delivers a wake-up call for freedom. As Nada memorably declares, “I have come here to chew bubblegum and kick ass. And I’m all out of bubblegum.” In other words: we need to get active and take a stand for what’s really important. Stop allowing yourselves to be easily distracted by pointless political spectacles and pay attention to what’s really going on in the country.

As I make clear in my book "Battlefield America: The War on the American People" and in its fictional counterpart "The Erik Blair Diaries," the real battle for control of this nation is taking place on roadsides, in police cars, on witness stands, over phone lines, in government offices, in corporate offices, in public school hallways and classrooms, in parks and city council meetings, and in towns and cities across this country.

All the trappings of the American police state are now in plain sight. Wake up, America. If they live (the tyrants, the oppressors, the invaders, the overlords), it is only because “we the people” sleep."

"I Know Why You Did It..."

"There are of course those who do not want us to speak. I suspect even now, orders are being shouted into telephones, and men with guns will soon be on their way. Why? Because while the truncheon may be used in lieu of conversation, words will always retain their power. Words offer the means to meaning, and for those who will listen, the enunciation of truth. And the truth is, there is something terribly wrong with this country, isn't there? Cruelty and injustice, intolerance and oppression. And where once you had the freedom to object, to think and speak as you saw fit, you now have censors and systems of surveillance coercing your conformity and soliciting your submission.

How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror. I know why you did it. I know you were afraid. Who wouldn't be? War, terror, disease. There were a myriad of problems which conspired to corrupt your reason and rob you of your common sense. Fear got the best of you, and in your panic you turned to the government. They promised you order, they promised you peace, and all they demanded in return was your silent, obedient consent."
- "V For Vendetta", slightly modified.

Bill Bonner, "Cometh the Flood"

"Cometh the Flood"
The heavens open up, a lost decade for 
bonds and what comes after the US dollar?
by Bill Bonner and Joel Bowman

"Apres nous, le deluge."
~ Louis XIV to Madame de Pompadour

Youghal, Ireland - "What a downpour! “I’ve never seen so much rain,” said Pat, a neighbor. At least, that’s what we think he said. Pat is from across the river. The local patois is different. It is English, but it sounds like gutter Gaelic. We called Pat in desperation. Water was running down the hill – torrents of it. It ran right into our guest cottage. The firewood, which had been neatly stacked next to the doorway, floated on a foot of water when we went in. “The mainstreet of Midleton is under water,” Pat went on. “The whole city is closed to traffic.”

The Heavens Opened: We bailed out the house as best we could, scooping up the water with a bucket and a dustpan…and then mopping up the remainder. It took all day on Saturday. Fortunately, it has a stone floor…and little furniture with no upholstery or carpets. No one lives there. But we needed to dig a ditch that would divert the flood down the hill without passing through our cottage. Pat has a backhoe. You’d think a country such as Ireland would be better prepared for rain. But roads were washed out…houses flooded…business halted.

“We’re used to a gentle rain. It rained almost every day in the summer,” Pat observed. “But we’re not used to such heavy rain. The ground was saturated by September. Now, it just runs off and causes a lot of damage.” By Sunday, things were under control – or so we thought. Then, on Monday, the heavens opened up…a “real frog strangler” as they say in Maryland. Or, as Damien would put it, “il pisse des cordes.” (No translation needed.)
After mopping up.
The Financial Climate: In came the water again. We were only partly ready for it. We’d installed a sump pump in a low area, but the water was now coming in the house from a new direction. “It’s global warming,” Pat provided a scientific analysis. “The sea heats up and gives off more vapor. It falls on us.” Maybe. Maybe not.

Meanwhile, we turn our attention back to that critical moment three years ago. In July, in the midst of the Great Covid Panic, 2020, bond yields bottomed out. Thence began a change in the financial climate. It started to rain. The bigger the delusion…the bigger the debacle that follows.

In this case, the authorities seemed to think that by lending fake money at fake interest rates they could engender a real boom. First, Alan Greenspan gave out his famous “Greenspan Put”…practically guaranteeing to lower interest rates if ever equity values were threatened.

And then, in the War on Terror, the Fed did its patriotic duty with a cut of 500 basis points (5%) of its key lending rate. It was a mistake…but not nearly as bad a mistake as the Fed would make in response to the mortgage finance crisis of 2008. Ben Bernanke cut rates again, of course…but this time the Fed cut them to ‘effectively zero.’ And there…with the lending rate lower than inflation…it pinned them there for the most part of the next 14 years.

A Lost Decade for Bonds: In the fall of 2020, it looked like we were seeing the turnaround. Finally, with the Fed still lending below the inflation rate, bonds began to sink (with rising yields). After the biggest, longest drop in bond yields ever—supported by delusions that were obviously rank nonsense – the next phase was sure to be (we resorted to the technical term) a ‘doozy.”

And so it was. Bond prices fell like rain on Noah. The next three years turned out to be the worst bear market flood in bond history. Here’s Charlie Bilello: "It’s been a lost decade for holders of long-term bonds ($TLT ETF), with a decline of 1% over the last 10 years. The 10-Year Treasury bond is down 5% this year, on pace for its 3rd consecutive annual decline. With data going back to 1928, that’s never happened before. The worst 3-year period for bonds prior to now was 1978-1980 with a 3% loss for the 10-Year. What’s the 2021-23 cumulative decline? -26%.

That is what a change in the Primary Trend does. It turns the bets made during the previous cycle into bad ones. ‘Buy the dip?’ Doesn’t work. A ‘balanced portfolio of stocks and bonds?’ Good luck. Look at the stock market. Over 36,000 at the end of 2021, it now struggles to stay over 33,000…as inflation continues to eat away at real values. This year, the S&P is down 2%. Small caps have lost about twice as much."

What will happen next? We don’t know…but we’d keep the waders handy. Stay tuned."
o
Joel’s Note: Yesterday in this space we brought you the latest, post-election news from down here in Argentina. Essentially, the economy is still broken, the political scene is still a mess and the local currency, the peso, is hardly worth the paper it’s printed on. Status quo ante.

With somewhere close to 200% annual inflation, Argentina serves as a cautionary tale for other nations keen on printing their way to prosperity. Of the two remaining presidential candidates (the country will decide its leader in a second round ballotage here on Nov. 19), one has proposed dollarization as a way to snuff out rampant inflation. Which got the BPR team thinking...

Though still a long way from Argentina’s dire situation, the United States is working overtime to thrash its own greenback to death. $33.5 trillion in national debt... multi-trillion dollar deficits as far as the eye can see... funding for two wars, with another potentially on the way... and confidence in US government paper in the worst shape it’s been in living memory...

Eventually, one is tempted to ask: Where does the last buck stop? If there was suddenly a run on the dollar... if inflation north of the Rio Grande began to resemble that here on the Pampas... what might replace the once-mighty greenback?"

"Peter Schiff: This Is The Most Obvious Financial Crisis That Nobody Sees Coming"

"Peter Schiff: This Is The Most Obvious
 Financial Crisis That Nobody Sees Coming"
By SchiffGold.com.

"The mainstream continues to insist that the economy is fine. Inflation is beat. A soft landing is in play. But in his podcast, Peter Schiff said we’re in the early stages of a financial crisis. It should be obvious, but very few people see it coming. Peter emphasized that we are already in the midst of a financial crisis. Now, this is, of course, the early stages of that financial crisis. It is unfolding before your eyes if you’re awake or smart enough to recognize what you see. But it is going to get a lot worse.”
Peter said that at some point, people are going to recognize that we’re in a financial crisis, but they’re not going to realize why. "They’re all going to be just as blindsided by this financial crisis as they were by the much smaller financial crisis in 2008 that also took them by complete surprise.”

During the 2008 meltdown, the mainstream described it as a “100-year flood” — a “black swan” that nobody could have foreseen. "Which of course was a bunch of BS, because a number of people, myself included, not only saw it in advance, but spent years warning about it.”

Peter said the evolution of this crisis is just as clear. "This is the most obvious financial crisis that nobody sees coming. I mean, this isn’t even a black swan. This isn’t even a white swan. This is like a pigeon. They’re everywhere. This is a very common bird that is not coming out of left field. It’s right there. But Wall Street has a big vested interest in ignoring this. And so do a lot of people on Main Street, so does academia, the financial media, the government. Nobody wants to acknowledge this until of course it already happens. Then they have to figure out who the scapegoat is.”

One thing is pretty certain. Nobody will blame the party most responsible – the government. "They never look back and reflect on the government’s role in creating the crisis. No, no, no! They’re too busy pointing fingers at somebody in the private sector and holding out government as the salvation. ‘We just need more government! If we only had more regulations then this wouldn’t have happened.’ No. It happened because we had too many regulations. What we need is free market regulations.”

Government regulations sabotage the free market regulations that actually do work. We can see the financial system unwinding in the bond market. Long-term bond yields continued to rise last week. Peter called the bond selloff “relentless.” On Friday, the yield on a 30-year Treasury rose above 5.1%. The yield on the 10-year also briefly eclipsed 5%.

The yield curve is basically flat around 5%, but Peter said it isn’t going to stay flat. "It’s going to steepen. I expect long-term interest rates to continue the March upward, and we should put more distance between a 90-day, 6-month bill and a 10 to 30-year Treasury bond, especially the 30-year bond. That one is going to take the biggest hit.” Peter said as the curve normalizes, the short end could rise toward 6% with the long end pushing into the 7 or 8 percent range – minimum.

The question is will the Federal Reserve allow it? "Will the financial markets, will the banking sector, will the economy, will the government be able to withstand that increase? So far, it seems like, OK, we’re surviving 5%. Although, I don’t really think we are. I think the numbers belly the problems that underlie the economy.”

For instance, the Index of Leading Economic Indicators fell for the 16th straight month in September, dropping another 0.7%. The Conference Board also revised the August number lower. "That’s pretty rare. You have to go back to 2007-2008, which was the Great Recession — the worst recession since the Great Depression of the 1930s. You’ve got to go back there to find a string of negative leading economic indicators that’s longer than the 16 months we’ve got now.” This indicates that the economy is a lot weaker than the “experts” keep telling us. If the economy is so strong, how can these ‘leading’ economic indicators be so weak?

Meanwhile, we have record credit card debt along with record credit card interest rates. The “unsinkable” American consumer is drowning in debt. Financial sector stocks are getting beaten up. American Express was down 5.4%. Peter pointed out that these banks and financial companies are just reporting the early stages of problems.

"But anybody who was loaning out money during the bubble is going to have a problem getting the money back as the bubble deflates, so, this is just the tip of a big iceberg for American Express, Visa, Mastercard, Discover, all these credit card companies.” And if consumers can’t borrow - they can’t buy.

There are also continuing signs of stress in the banking sector. Banks continue to tap into the bailout program set up after the collapse of Silicon Valley Bank and Signature Bank. There is also growing concern about pressure in the banking system created by the commercial real estate market. Things are still simmering under the surface, but it’s only a matter of time before the situation erupts.

In this podcast, Peter also talked about Jerome Powell’s speech at the Economic Club. He said Powell isn’t qualified to be a member."

'How It Really Should Be"