theeconomiccollapseblog.com / By Michael Snyder / June 24th, 2016
Has the next Lehman Brothers moment arrived? Late Thursday night we learned that the British people had voted to leave the European Union, and this could be the “trigger event” that unleashes great financial panic all over the planet. Of course stocks have already been crashing all over the globe over the past year, but up until now we had not seen the kind of stark fear that the crash of 2008 created following the collapse of Lehman Brothers. The British people are certainly to be congratulated for choosing to leave the tyrannical EU, and if I could have voted I would have voted to “leave” as well. But just as I warned 10 days ago, choosing to leave will “throw the entire continent into a state of economic and financial chaos”. And “Black Friday” was just the beginning – the pain from this event is going to continue to be felt for months to come.
The shocking outcome of the Brexit vote caught financial markets completely off guard, and the carnage that we witnessed on Friday was absolutely staggering…
-The Dow Jones Industrial Average plunged 610 points, and this represented the 9th largest one day stock market crash in the history of the Dow.
-The Nasdaq was hit even harder than the Dow. It declined 4.12 percent which was the biggest one day decline since 2011.
johngaltfla.com / by John Galt / June 24, 2016
…and it is pushing me closer to just staying home this election cycle or getting drunk and voting for Trump
The Never Trump movement was founded on great principles. The people who supported this movement were principled conservatives, individuals who did not necessarily identify themselves as Republicans first but as Constitutional Conservatives. Oh there were Democrats, Socialists, and other various leftists who latched on to the “Never Trump” movement in order to sabotage the conservative opinion makers within the Republican Party, but generally speaking the ideal and movement focused on alternatives who honored America’s history of Constitutional law and capitalist economics. Mary Matalin a noted Republican strategist demonstrated the principles behind this idea by changing her party registration to Libertarian and coming out in support of Austin Petersen for President.
Now however, the movement is in trouble.
The RINO’s have arrived. Or in this case one of the most dirty, rotten, son of a bitches to walk the halls of Congress and Executive Branch of our nation has come out in a lengthy editorial proclaiming the “me too” aspect of the Never Trump movement.
dollarvigilante.com / JEFF BERWICK / JUNE 25, 2016
In 2014, Christine Lagarde gave a speech on “the magic number 7.” It, along with work by Jonathan Cahn, led us to the Shemitah seven-year cycle and the Jubilee year, which the globalist elites are well aware of.
What we’ve discovered since is that there is even more to the “magic number 7” than just years… it appears to correlate right down to months, weeks and days.
The last major market crash occurred on September 29, 2008. On that day, the Dow Jones fell 777 points, of all numbers…. its biggest one day point drop ever.
On Friday, in the aftermath of Brexit, the Dow fell over 600 points. What’s interesting about Friday’s date?
It was 7 years, 7 months, 7 weeks and 7 days since September 29, 2008.
paulcraigroberts.org / Paul Craig Roberts / June 24, 2016
The Brexit vote shows that a majority of the British voters understand that the UK government represents interests other than the interests of the British people. As difficult as the British know it is to hold their own government to account, they understand they have no prospect whatsoever of holding the EU government to account. During their time under the EU, the British have been reminded of historical times when law was the word of the sovereign.
The propagandists who comprise the Western political and media establishments succeeded in keeping the real issues out of public discussion and presenting the leave vote as racism. However, enough of the British people resisted the brainwashing and controlled debate to grasp the real issues: sovereignty, accountable government, financial independence, freedom from involvement in Washington’s wars and conflict with Russia.
thecommonsenseshow.com / By Dave Hodges / June 25th, 2016
British voters issued a stunning repudiation of the ruling establishment and the march towards a the establishment of the New World Order and a one-world government.
Donald Trump is betting America is about to do the same.
“Come November, the American people will have the chance to re-declare their independence. Americans will have a chance to vote for trade, immigration and foreign policies that put our citizens first,” he said. “They will have the chance to reject today’s rule by the global elite, and to embrace real change that delivers a government of, by and for the people.”
Can you believe that Donald Trump used the term, the “global elite“. The use of this term by Trump tells me that what I have been about what Trump knows and believes matches very carefully with the views of the majority people that visit the various websites such as Stevequayle.com, Infowars and The Common Sense Show. I have also been told by an inside source, that the attacks upon Clinton will intensify and reveal much of the global elite’s agenda in the lead up the General Election, assuming we will still have an election.
21stcenturywire.com / VANESSA BEELEY / JUNE 25, 2016
The BREXIT issue has inflamed demographic factions on both sides of the western left and right-wings of the sociopolitical paradigm. Within this atmosphere of confusion and political friction, the Establishment – on both sides of the aisle – will seek to capitalise on the chaos in an attempt to jockey for position and with ‘party leaders’ increasing their respective power bases, and achieving brand new power realignments, all while the media pretends to referee the public argument over what the country ‘needs’ to do.
The following article was published with Counterpunch Magazine, a publication which generally represents a traditional left-wing geopolitical perspective. The stance of this author demonstrates a genuine fracture in the political alignment of the traditional left – a rift which is becoming more pronounced every day. Understanding why this is happening will be important if people are to achieve a higher dialogue going forward – in what looks to be a very divisive epoch in Euroland…
wolfstreet.com / by Wolf Richter / June 24, 2016
Without any real end in sight. That’s what’s different this time.
On the surface, it was the kind of report that has been dogging the US economy for a while.
Orders to US factories for durable goods dropped “unexpectedly” – as the media put it – by 2.2% in May from the prior month, on a seasonally adjusted basis, according to the Commerce Department. “Unexpectedly,” it seems because orders had risen 3.3% in April and 2.0% in March, and the trend henceforth would be upward. But instead, it was a broad-based decline, with some real doozies.
The generally volatile orders for transportation equipment fell 5.6%, as military aircraft orders plunged 34.1%, and as orders for motor vehicles and parts fell 2.8%.
The drop in automobile orders is worrisome. After years of booming, the auto sector set an all-time record last year in terms of total unit sales in the US. It’s a huge sector, making up a big part of manufacturing and about 20% of total retail sales. If it weakens, the economy will lose one of its last strong pillars [read… What Will Sink the US Auto Boom?].
market-ticker.org / by Karl Denninger / 2016-06-25
This weekend I had a “walker” come to my home soliciting votes for Congress.
I’m familiar with this; walking neighborhoods is a time-honored thing, but it’s hotter than Hell here today in Florida, and this guy was clearly not all that pleased about standing outside with me while I chatted him up.
He of course was pushing the local “conservative”, Mr. Gaetz. I told the solicitor that while I was very much aligned with Gaetz’s agenda as I understood it (and was on the literature he was peddling) I was simply not interested in backing anyone for Congress who wouldn’t deal with the single issue that IMHO is the most important: Medical monopolies.
Of course any sort of mention of that was flatly-absent, and while Gaetz claims to be “for” a balanced federal budget I also pointed out that so is allegedly Ryan, and yet we’ve had nothing but growth in both the cost of government and its debt during the time he has been speaker.
He didn’t like me very much by the time we got done, but he also didn’t secure my vote — and he shouldn’t secure yours either, no matter who it is, until and unless this is front and center in the political debate.
zerohedge.com / by Tyler Durden / Jun 25, 2016
While global financial markets, not to mention Europe’s political elite, rushes to preempt the global political fallout from Brexit, the UK itself is undergoing a chaotic and very much ad hoc politcal transformation, one which has seen no precedent in UK history, in the short day since David Cameron announced his resignation while the Chancellor George Osborne appears to have vaporized, just days after spending every waking moment prognosticating about doom and gloom should the Leave camp win.
In the middle of this transformation is none other than Boris Johnson, the leader of the successful “Leave” campaign, who however has cause to celebrate tonight because according to the Sunday Times, the former London mayor has won the backing of a key colleague to replace David Cameron as prime minister. Justice minister Michael Gove, who together with Johnson led the “Leave” campaign, called Johnson on Saturday to say he would back him for the leadership of the ruling Conservative Party, Reuters added.
The Sunday Times said interior minister Theresa May was expected to enter the leadership contest in the coming days and was likely to get support from allies of Cameron who see her as the best candidate to take on Johnson, a former London mayor.
May supported the “Remain” campaign but took a lower profile than Cameron and finance minister George Osborne, whose hopes of becoming the party’s next leader took a big blow with the outcome of the referendum.
One also wonders what, if any role, Nigel Farage will hold in the new cabinet: after all, if it weren;’t for the UKIP in last year’s elections, David Cameron would have never called the Referendum which has since cost him his job and the UK’s presence in the EU. For him to be omitted from any key position would be a massive oversight, and significant gamble, on the part of the Conservative Party.
thedailysheeple.com / JOSHUA KRAUSE / JUNE 25, 2016
There are millions of Americans who want to restrict firearm ownership and use by one degree or another. While you may disagree with those people, at least they’re consistent. For the most part, die-hard gun grabbers don’t own firearms, and have probably never even held a gun before. They’re not hypocrites, unlike the handful of politicians and celebrities who often lead them.
It’s been pointed out by Second Amendment supporters for years, that the wealthy and famous liberals who say they hate gun so much, are typically flanked by professionally trained and armed security guards at all times. They tell us that we don’t need firearms to protect ourselves, while they go about their lives constantly surrounded by firearms.
Unfortunately, this hypocrisy is rarely challenged in person. These people are singled out by pro-gun activists over and over again, but nobody with a microphone or a video camera has had the opportunity to question these elites over their blatant hypocrisy. We’ve never seen the right reporter with the right questions, get close enough to one of these high profile anti-gun crusaders. Clearly, having a squad of armed guards has plenty of perks for people who don’t like to explain themselves.
mises.org / Ryan McMaken / 06/24/2016
That didn’t take long. Only hours after the final results came in for a British exit from the EU, political leaders in Scotland are talking about renewing their drive to secede from the United Kingdom.
Pointing to the fact that a large majority of Scots voted to remain in the EU, Scottish advocates for independence are now claiming (convincingly) that Scotland is leaving the EU against its will.
Many of us who advocated for Scottish secession in 2014 were, of course fine with Scottish secession at the time. And we’re still fine with it now. Scotland should be free to say good bye and got its own way.
Some opponents of Scottish exit, however, have claimed that Scotland is too small “to go it alone.” Defenders of Scottish independence call this the “too wee, too poor, too stupid” argument.
Even the most rudimentary analysis, however, shows that size is not an issue for Scotland. With an official GDP of approximately 245 billion, Scotland is not too much different from Ireland, Finland, and Denmark. It’s economy is much larger than that of Iceland (16.7 bln) and New Zealand (172 bln).
With a population of 5.3 million, this puts Scotland either similar to or larger than Denmark, Norway, Finland, New Zealand, and Ireland.
zerohedge.com / by Tyler Durden / Jun 25, 2016
After former news curators admitted that Facebook routinely suppressed conservative news on its news feed, a training manual was leaked that confirmed there was only one of ten “trusted” news sources by which trending news topics could come from with any type of conservative angle. In the wake of those bad public relations events, the company clumsily tried to save face. Facebook subsequently denied any wrongdoing but still introduced several changes in its policies – put another way, Facebook denied anti-conservative bias but changed policies that produce anti-conservative bias.
After all of the aforementioned events, one would assume that Facebook would lay low and let all of this fade with time, but one would be wrong. Sheryl Sandberg, Facebook’s chief operating officer recently announced that the company would be introducing a “political bias” training program in addition to the managing unconscious bias class the company offers employees.
srsroccoreport.com / By John Lee / June 25, 2016
The roulette game all started in the fall of 2014, about 2 years after Chairman Xi Jinping came to power and became the General Secretary of the Communist Party of China.
Xi Jinping had campaigned for socialist economic reform, including a sweeping anti-corruption drive, cutting excess production capacity, tightening of housing credit, and clamping down on gaming in Macau. Public feedback was initially positive. However, largely as a result of those policies, Beijing was facing an increasingly grim economic growth outlook which was the worst in more than two decades*. Manufacturing activity in China slowed along with the global economy and the construction sector stagnated.
mishtalk.com / Mike “Mish” Shedlock / June 25, 2016
A reader asks if my stance of free trade is consistent with Brexit.
Reader Craig asks
I just thought of this, you are very free trade\open markets. In fact you advocate eliminating all tariffs in the USA. The elimination of tariffs is one of the intended goals of the EU. You however were for Brexit, which most people would think is anti-free market, or anti-free trade. Your stance this seems to be contradictory. Have you changed your stance since you stated that “the first country that practices free trade regardless of what anyone else does will be a winner.” or I’m I missing something?
zerohedge.com / by Tyler Durden / Jun 25, 2016
Regular readers are well aware that residents are rushing out of California in droves for many reason, least of which is the high cost of living. For those older California residents that choose to stay however because they simply can’t uproot their lives and start “fresh” somewhere else, the reality is even more gruesome as they have no choice but to continue working into their retirement years. More than 740,000 Californians between the ages 65 and 74 are still employed or looking for work the Sacramento Bee reports, and the reasons are largely attributable to money.
As the Sacramento Bee reports, more than 740,000 California residents between ages 65 and 74 are employed or looking for work, roughly double the number from 15 years ago, according to a Sacramento Bee review of the latest census data.
Much of that growth reflects a swell of baby boomers entering retirement age. But the proportion of California seniors between ages 65 and 74 still working or looking for work also has risen, going from 20 percent in 2000 to 26 percent in 2014.
Californians are working longer for a number of reasons. Some do not have enough money to retire or are among a growing number of seniors living in poverty. Others are waiting to collect their full allotment of Social Security payments as the federal retirement age gradually rises from 65 to 67. Many are simply in good health and want to keep working as life spans increase.
The percent of Californians ages 65-69 who are still working or looking for work has increased dramatically since 1990, and still remains well over 30%. The percent of residents between 70-74 who are still working or looking for work has trended up since 1990 as well, although much more gradually, and remains just under 20%.
gata.org / By Ambrose Evans-Pritchard / Friday, June 24, 2016
It is time for Project Grit. We warned over the final weeks of the campaign that a vote to leave the European Union would be traumatic, and that is what the country now faces as markets shudder and Westminster is thrown into turmoil. …
The stunning upset last night marks a point of rupture for the post-war European order. It will be a Herculean task to extract Britain from the EU after 43 years enmeshed in a far-reaching legal and constitutional structure. Scotland and Northern Ireland will now be ejected from the EU against their will, a ghastly state of affairs that could all too easily lead to the internal fragmentation of the Kingdom unless handled with extreme care. …
johngaltfla.com / by John Galt / June 24, 2016
The political and financial elites never learn their lesson.
Just twenty-four hours ago Nigel Farage of UKIP was proclaiming a narrow defeat for the “leave” faction in the Brexit election only to be surprised himself some four hours later by the overwhelming returns showing the British citizenry rejecting the bureaucratic lies and nightmare known as the European Union. Fast forward to this morning where Spain’s center-right Prime Minister Rajoy decided to act like Prime Minister David Cameron with his threats of the consequences should the Podemos Party succeed and win enough of a majority to form a ruling coalition.
Do these elites ever learn?
From the New York Times this afternoon:
Mariano Rajoy, the acting prime minister, said on Friday that his government was sad to see Britain leave the European Union, and told Spaniards that they should confront the future with “serenity,” as the British referendum result sent Spain’s financial markets tumbling.
Mr. Rajoy used the market tremors to underline the economic progress achieved under his administration. An external shock like the “Brexit” referendum, he argued, “could have precipitated Spain into bankruptcy or bailout only a few years ago: that isn’t now the case.”
“In these moments, it is particularly important to transmit a message of institutional and economic stability,” he added.
“These aren’t moments to fuel or add uncertainties,” he said, alluding to the economic plans of Podemos.
zerohedge.com / by Tyler Durden / Jun 25, 2016
The world of central banking relies on transferring vast amounts of information along controlled and secure messaging lines, around 2 million per day between roughly 7,000 institutions. The system of connections to and from central banks in Asia, Russia, China, Africa, and the Americas is known as SWIFT (The Society for Worldwide Interbank Financial Telecommunication). SWIFT provides a means for sending messages between the parties that have access to it. Each party is responsible for providing security measures before accessing the SWIFT network.
On March 7, 2016 Reuters reported the central bank for Bangladesh stated it discovered unauthorized withdrawals from its account at the Federal Reserve Bank of New York (FRBNY). The amount of the unauthorized transfer has been reported to be USD $951 million. The World Bank database shows Bangladesh holds just shy of USD $28 billion in foreign exchange reserves on its books, an amount that has tripled since 2011.
Around the middle of April reports appeared which stated that roughly USD $81 million remained uncovered. It still remains uncovered as of this writing. What also remains uncovered is the truth of what happened. We have yet to learn if someone hacked into the SWIFT system from outside the Bangladesh central bank headquarters or if the unauthorized transaction was executed as an “inside job”. Sources speaking with Zero Hedge control cyber security operations for international companies have said it would appear the complexity of the steps necessary to execute a transaction across the SWIFT system would require knowledge from someone who regularly interacts with the SWIFT system.
wallstreetexaminer.com / by Peter Krauth / June 24, 2016
The gold price today (Friday, June 24) rocketed past the $1,300 mark after the results of the Brexit vote sent global markets into a wild tailspin.
As of 1:35 p.m., gold prices were up 4.6% to $1,321.10. That puts the yellow metal on track for its largest one-day gain since February and its highest close since August 2014.
The results of the UK referendum are now clear – Britain has voted to leave the EU. And while the price of gold is benefiting the most from the controversial decision, markets around the world are in turmoil.
European markets all plunged on the news. The UK’s main stock index, the FTSE 100, fell 3.2% on the day, while Germany’s and France’s main indices were down 6.8% and 8%, respectively. Here in the United States, the Dow Jones Industrial Average is down 2.8%.
armstrongeconomics.com / by Martin Armstrong / Jun 25, 2016
The true impact, on Britain and on Europe, will start to become visible rather quickly. It is absurd to think that anything has to change in respect to trade between the EU and Britain. What this means is really that Britain will not be subservient to Brussels and would be in the same position as the United States. However, our sources are telling us that the EU will try to punish Britain, as they did the Greeks, for having the audacity to reject their superiority. This may become more of a nasty divorce where when a couple moved in together the wife hated his lucky lazy-boy to watch games. In divorce, it will cost him $50,000 in legal fees to get the lazy-boy back that she threatened to throw out many times. NATO is nothing without Britain. Indeed, Europe is incapable of defending itself without Britain and the USA.
The Scottish are threatening to hold their own referendum to separate from the UK and remain in the EU. That too is insanity. Sottish independence is one thing. To remain in the EU is to surrender their independence and become subservient to Brussels. Ireland wants a referendum to unite North and South. That will probably only result in civil war. Britain should step out and let them duke it out.
zerohedge.com / by Tyler Durden / Jun 25, 2016
Starting off the year, Goldman was prodigiously optimistic, bullish… and dead wrong. Since then the bank has cut its rate hike forecast from 4 to 3 to 2 and, now in the aftermath of Brexit, it has just the excuse to say that “our forecasted path for the funds rate now looks quite unlike any tightening cycle in modern Fed history—one increase, followed by an extended pause, followed by gradual but steady increases over the subsequent three years.” Which, quite simply, is another way for Goldman to say it was dead wrong. Again.
Here is how Goldman throws in the towel on the whole rate hike thing.
Tweaking Forecasts Following British Referendum
The decision of voters in the United Kingdom to exit the European Union will begin a lengthy process of negotiations with uncertain effects for both the UK and the rest of Western Europe. The trade linkages between Britain and the US are relatively modest (exports to the UK amount to about 0.7% of US GDP), so even in the event of a meaningful downturn, these spillovers are unlikely to derail US growth. Financial linkages are much tighter, however, and here we have already witnessed meaningful effects: our Financial Conditions Index (FCI) tightened by about 30 basis points (bp) today—enough to subtract around 0.2pp from GDP growth over the next year, if the FCI changes prove persistent.
As a result of the aftershocks of the “leave” vote on US financial conditions, we are downgrading our US growth forecasts for the second half of this year. We now expect GDP growth to average 2.0% in 2H 2016, down from 2.25% previously (see table below). The reduction reflects lower forecasts for business fixed investment spending in the months ahead. At this point we have not changed our forecasts for the unemployment rate or core inflation: we still see the unemployment rate averaging 4.6% in Q4, and core PCE inflation ending the year at +1.7%
JSMineset, Published on Jun 25, 2016
Bill and Jim discuss the Brexit decision.
wolfstreet.com / by Harry Dent / June 24, 2016
What do they know that we don’t?
Two weeks ago, I wrote about an upcoming New York City condominium listing for $250 million. I mention this because, as I’ve explained before, it’s always the tallest buildings and priciest condos to get hit during major downturns.
Just look at the early 1930s and mid-1970s marking peak bubbles if you don’t believe me!
You’ll understand, then, why I smiled when I saw a Forbes called “The Little Black Book of Billionaire Secrets,” featuring the most expensive homes in each of the 51 states, including Washington D.C.
North Dakota held the honor of the least expensive home, at just under three million dollars, now that the fracking boom has burst. The most expensive home was not in Manhattan, but in Florida – Palm Beach – at $159 million.
That’s a wide range of values, where the top house is 57.2 times the lowest of the high!
A number of top homes in the $4 million to $11 million range, not surprisingly, were found in the Midwest and Southeast – from Ohio and Indiana to Alabama, Mississippi and Arkansas.
zerohedge.com / by Tyler Durden / Jun 25, 2016
Mozambique has a broad swath of problems within its governing councils. Back in December of 2005, Management Systems International based out of Washington issued a report titled CORRUPTION ASSESSMENT: MOZAMBIQUE which said point blank: “The scale and scope of corruption in Mozambique are cause for alarm”.
Mozambique’s head of state Joaquim Chissano left office in February 2005 after 15 years. His replacement, Armando Guebza, that same year opened Mozambique’s coastline to international companies seeking to search for resources. Between 2005 and 2006 three firms were able to capture rights to explore the coast, Anadarko, Italy’s Eni, and Petronas. Some 75 trillion cubic feet of natural gas was discovered and this set of a a blitz into Mozambique as international banks, corporations, and organizations flooded the area. This opened a breeding ground for corruption and unregulated financing, specifically the controversial Tuna Bond that was supposed to be used to support regional fishing and was instead used for military expenditures and to purchase some 40 boats that remain anchored to this day.
investmentresearchdynamics.com / Dave Kranzler / June 25, 2016
Just a quick note on this referendum as we are in the final minutes of the voting. My sister’s friend is in the army. They came over for dinner tonight and he was asking about the vote and what my thoughts were. I then returned the question and he had said that 90% of the lads in his camp, which are in the hundreds, were all voting to leave. Their reasoning, in a British army camp of lads aged between 18 and 35, was because they don’t believe they should be getting webbed up in wars that we shouldn’t be fighting. He said they pretty much all can agree on the fact that the wars are dictated by Washington, via Brussels, and what they say goes and its not something they support. These were his words and I have to agree. – A British friend of the Shadow of Truth
The elitists had a lot to lose if the BREXIT referendum succeeded. Just like AP declared Hillary the nominee did BEFORE the Calif primary, the WSJ sent out an online article yesterday afternoon saying the REMAIN vote had won. But this last-gasp attempt to rig the vote failed.
The elitist narrative said that BREXIT would take down the British economy. The details of this were never explained but NWO’er, George Soros, warned as much last weekend. This was just another scare tactic used to cover up the fact that a BREXIT would undermine considerably the western elitist holy grail of a one world, one Government system.