The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label consumer. Show all posts
Showing posts with label consumer. Show all posts

Monday, April 17, 2017

After a decline due to Modi's cash banning scheme, India's gold importing soars in in first quarter of 2017

In the latest report out of India for the first quarter of 2017, the world's largest gold consumer market saw a return of soaring imports of the precious metal following a 4th quarter decline due in part to Prime Minister Modi's attempts to ban most cash.

During the first three months of this year, gold imports were for 230 tons, which is nearly as much as the period between April and November last year when the government instituted a cash ban and a new scheme to bring about a cashless society.

Sentiment has turned up in the gold market the last few weeks. And new data from the world’s top consuming center — India — shows there may indeed be cause for optimism amongst bullion buyers. 
Data reported in the local press showed that India’s gold imports saw a big jump during the most recent quarter, January to March 2017. With total imports for the period hitting 230 tonnes. 
To put that in perspective, consider some numbers from recent quarters — during which India’s gold imports showed some of the weakest figures on record. 
During April to October 2016, gold imports totalled just 264 tonnes. Meaning that incoming shipments for that entire seven-month period were barely above the figures for the most recent three months. 
That suggests a major surge in gold demand is happening here. In fact, imports for the Jan-Mar 2017 quarter were the strongest for those months since 2013. - Oil Price
Since the beginning of the year, gold has climbed by more than 11% from $1148 on Jan. 1 to nearly $1300 following last weekend's trading.

Friday, April 14, 2017

As consumers find themselves broke, a proposal to Congress would sacrifice social security for more money to spend

When 9/11 hit, the Bush administration saw that the terror event could have serious ramifications on the economy as people naturally would pull back on spending out of fear of further geo-political and domestic crises.  And in the wake of this the President not only went on the air encouraging people to spend using the guise of 'Don't let the terrorists win', but he also got Congress to approve a tax rebate to filter billions of dollars into consumer's pockets so they would prime the pump to keep spending.

Then following the 2008 Financial Crisis and subsequent Great Recession, that decade of spending that was additionally fueled by near zero interest rates and a housing bubble which gave homeowners a virtual 'equity checkbook' came to an abrupt halt as job losses, foreclosures, and the realization of massive consumer debt put the economy into its worst environment since the Great Depression.

So the Fed then embarked on a new program called Quantitative Easing where they pumped $10's of trillions of dollars onto Wall Street and the Federal Government to facilitate the creation of not just one asset bubble, but multiple ones in housing, stocks, student loans, automobile loans, and the bond market.  And this provided the illusion of recovery, but only sustainable as long as the increased printing of money did not reach the point of diminishing returns.

But alas, that happened during 2015 where it takes at least $4 new printed dollars to equal $1 new dollar in GDP growth.

As we reach the end of the first quarter of 2017, the data is signalling the tipping point of all of these bubbles, and an end to consumers being able to borrow and spend beyond their means.  Retailers are closing stores and filing for bankruptcies at accelerating rates, and earlier this month credit card debt for Americans crossed over $1 trillion for the first time since prior to the 2008 crash.

So with consumer and government spending making up 80-85% of the nation's GDP, what is left for Congress and/or the Fed to scheme up to keep the economy from 'officially' spinning back towards an ever greater recession than nine years ago?

One proposal suggested by a Congressional lobbyist to legislators would be to cut or eliminate the Social Security tax paid by workers and business owners in favor of getting that money into the pockets of consumers so they can keep the ponzi scheme going for a few more years.

Image result for fed bush economy titanic
President Trump and his Republican colleagues are in a precarious position at the moment. They need to find ways to trim costs, yet not at the expensive of expanding the federal deficit. One idea being floated around Washington by a GOP lobbyist, according to Fox News, is one that would see the payroll tax drastically cut or eliminated entirely. 
In 2015, Social Security generated $920.2 billion in revenue, and the payroll tax accounted for 86.4% of that revenue. The payroll tax, which also funds Medicare, is a 15.3% aggregate tax on earned income. Overall, 12.4% goes to fund Social Security, and 2.9% funds Medicare. However, most workers are only responsible for half of this amount, with their employers covering the remainder. Thus, your responsibility as a worker is often 7.65% of your earned income (6.2% to Social Security and 1.45% to Medicare). Only the self-employed wind up paying the full 15.3%. 
Even then, Social Security's payroll tax has added exemptions. Earned income is taxed between $0.01 and $127,200, as of 2017. Any additional income above and beyond $127,200 is free and clear of taxation, which is a big benefit to the wealthy.
Under the Republican proposal, the payroll tax for Social Security (the aforementioned 12.4% tax) would be eliminated, while the Medicare tax of 2.9% would remain in place. 
Why eliminate this absolutely critical source of funding? Removing the Social Security payroll tax would add $3,100 to the pockets of the average Americans household earning $50,000 a year. Republican lawmakers have long believed that putting money back into the pockets of Americans is the best way to stimulate our consumption-driven economy. - Madison
With the government already borrowing over $1 trillion in deficit spending each year to simply make ends meet, the concept of borrowing the additional difference to cover Social Security payments should the tax be cut or removed from workers is not only in of the realm of possibiities, but has already been done back in the 1990's when President Bill Clinton replaced the $3 trillion cash surplus that was in the Social Security trust fund with U.S. Treasuries (debt) so they could spend the money elsewhere on the way to building the first great bubble, that of the Dot Com variety.

Thursday, November 24, 2016

Dollar strength leads to more purchasing power as Thanksgiving dinner costs for 2017 go down

It's Thanksgiving once again and that time of the year again where many things kick into motion for the American consumer.

Beginning with gasoline prices climbing a bit for areas around the country that switch over to winter blends, the season culminates with the arrival of snowbirds down South from Canada and the Northern U.S. locations and of course, the home stretch for retailers during the Christmas holiday shopping season.

But the main course for this period is as always Thanksgiving, and the coming together of families along with the cooking and baking of the traditional dinner.

Each year economists try to put together a cost analysis for the average dinner and more often than not, the price rises around 3-5% from the year before.  But with the dollar suddenly strengthening to levels not seen in the past 13 years, that additional purchasing power has done something not seen in quite some time...

A decline in cost for this year's Thanksgiving meal.

According to the American Farm Bureau Federation's (AFBF) annual informal price survey, the average meal for 10 people will be $49.87--  a 24-cent drop from last year’s average of $50.11. 
The survey’s shopping list includes enough turkey, bread stuffing, sweet potatoes, rolls (with butter, of course), peas, cranberries, a vegetable tray, pumpkin pie with whipped cream, coffee and milk for 10 eaters. The AFBF has been commissioning this study for 31 years. 
Foods showing the largest reductions this year were pumpkin pie mix, milk and a veggie tray comprised of celery and carrots. A 30-ounce can of pumpkin pie mix was $3.13, a gallon of milk was $3.17 and a one-pound veggie tray of celery and carrots was just 73-cents. 
A group of miscellaneous items including coffee and ingredients need to prepare the meal (butter, evaporated milk, onions, eggs, sugar and flour) came in at $2.81. 
The headliner - a 16-pound turkey - averaged a total of $22.74 (about $1.42 per pound). That’s a decrease of 2 cents per pound, or an overall 30 cents per whole turkey, compared to last year. - Fox News

Thursday, July 7, 2016

Most of the world still doesn't get it as money rushes into paper gold ETF's rather than physical metals

Money is an interesting thing.  First, people spend their lives trying to accumulate as much of it as possible but then hand off that money to a stranger with a title or Degree to 'protect' and 'grow' that money over the course of their working lives.

And secondly, people spend more time watching reality television per day than they do in learning to understand the very financial systems in which their lives are so tied to out of apathy, laziness, or misguided trust.

2008 should have been a wake-up call to most investors and especially those who have their money tied up in stocks, bonds, annuities, or other paper assets.  But just as remembrance in the events of 9/11 have faded away more than a decade after the attack, so too have people forgotten how fragile and corrupt the paper based Wall Street market system really is.

Which is why it should come as no surprise that the recent moves into gold and silver have primarily been done using paper based ETF's, and not through the purchasing of real and tangible metals which have no counter-party risk at all to the mechanisms of the financial system.

As Bloomberg notes, holdings in bullion-backed exchange-traded funds rose 4.1 tons to 2,001.4 tons on Wednesday, data compiled by Bloomberg show. That’s larger than the alleged gold reserves held by China (in reality China holds far more gold but it willing to only represent a fraction of its official holdings) the biggest consumer and a consistent central-bank buyer in recent months. The latest increase followed the biggest one-day gain since 2009 in the SPDR Gold Shares, the largest gold ETF. 
Global assets in the funds have surged 37 percent this year and prices are near a two-year high as slowing growth, negative rates in Europe and Japan and the likelihood that the Federal Reserve won’t hike further combined to boost demand. The U.K.’s vote last month to quit the European Union has added further impetus to that pro-bullion mix. Gold has likely entered the early stages of the next bull run, according to UBS Group AG, while ABN Amro Group NV says prices may hit $1,425 this quarter. 
“Investment demand has been very strong, with institutional buyers of ETFs the big gorilla in the room,” said John Butler, a vice president at GoldMoney, which provides custodian and investment services in Toronto. “We’ve reached a psychological tipping point where people see a material increase in the risk of a repeat of what we saw in 2008.” Client demand has been so strong recently that GoldMoney has struggled to keep up, he said. - Bloomberg
As the old saying goes, if you don't hold it, you don't own it.

Wednesday, December 23, 2015

U.S. lowers tax barriers to allow foreigners to buy more property and investments

Since the 1990’s, central bank policy has been to create monetary environments that build financial bubbles to make the economy look much better than it actually is.  And just as we recently saw where Fannie Mae is engineering amodified resurrection of sub-prime lending to boost the current housing bubble even further, the government is also jumping on the bandwagon by lowering a 35 year old tax rule that kept out foreign investors from buying up American property.
Known as the 1980 Foreign Investment in Real Property Tax Act, or FIRPTA, this act had created a disincentive for foreign individuals and institutions to buy property in the U.S., and keep Wall Street investments like REITS from being controlled by offshore entities.  But after passage of the new $1.1 trillion Omnibus spending bill last week, Congress and the President cut this Act to facilitate the inflow of foreign capital to keep the newest housing bubble from bursting.

Read more on this article here...

Sunday, October 11, 2015

Besides banning cash, banking cartel begins to drop hints of ending capitalism entirely

In capitalism, one of the most important fundamentals is that of price discovery being a natural occurrence determined between supply and demand among producers and consumers.  But for centuries this natural facet of free markets has been stymied due to political agendas, and corporate manipulation.
And with the advent of central banks, who have used their power over money supplies and interest rates to skew the natural course of all price discovery, and determine winners and losers in the ‘free markets’, their inevitable failures are now leading financiers and economists within their sphere to blame the tools of the market as the problem, and not their own actions and policies.
Which suddenly leads us to their next scheme, and one that is an attempt to stave off the bubbles and debt traps they have created for themselves and all of society… the ending of both cash and capitalism completely, and moving towards a 100% mandated economy run by a combination of the state and the banks.
In essence, the implementation of fascism.

Read more on this article here...

Thursday, September 29, 2011

Consumer belief in the economy reaches second weakest in history

When consumers are happy with their job situations and the economy, then consumer spending seems to go hand in hand with that happiness.  However, besides the fact that consumer confidence on jobs reached a low not seen since 1983, we now discover that consumer comfort is at a near record low as well.

As ES levitates 20-30pts off overnight lows on 'incredible' macro data and 'hope' in Europe, Bloomberg's Consumer Comfort Index just printed the second-lowest reading ever as 93% of those surveyed had a negative opinion of the economy. In almost every demographic, sentiment has fallen to near record lows (except we do note that in the last week those earnings 75k or more modestly improved their outlook though still drastically low). Perhaps the most critical sub-index, given the dependence on a consumer who is not paying his mortgage and living off food stamps, is the Buying Climate, which has only been lower during Q3 2008. We assume the congressional 'super-committee' is paying attention. - Zerohedge

(Chart courtesy of Bloomberg)

So tell us readers... what do you think this chart foretells for the Christmas season, which is just 3 months away?