This week’s column follows, in full. I wrote it fast and dry and, one quick edit aside, I didn’t even read it. An apology for the ho-hum-ness passed to TPC. But … MB ran it with praise today. I read it and … he might be right. A blending of one of my pet issues with a little nuanced fiction, comedy even. It captures a glimpse into my recent foray into cultural anthropology, a little hidden German truth, and even some nature photography. Enjoy:
Is there another (non-seedy) side to the Goldman?
Fresh dirt has spilled at Goldman Sachs — and this time it has been caught on tape.
David Solomon, who took the helm of the Wall Street giant from Lloyd Blankfein last week, once blew off criticism of Goldman’s double-dealing in a big energy merger as a matter of “perception” — a cheeky dismissal that came despite a class-action lawsuit against the deal that eventually cost Goldman $20 million in fees.
That’s among the cringeworthy quotes that Carmen Segarra claims she secretly recorded behind closed doors for her new book “Noncompliant: A Lone Whistleblower Exposes the Giants of Wall Street.” The 340-page exposé expands on her previous claims that Goldman Sachs has long exploited an improperly cozy relationship with Wall Street regulators.
I’m sure “your” humble public servants are already looking into this.
President Donald Trump slammed the Federal Reserve as “going loco” for its interest-rate increases this year in comments hours after the worst U.S. stock market sell-off since February.
Trump said in a telephone interview on Fox News late Wednesday night the market plunge wasn’t because of his trade conflict with China: “That wasn’t it. The problem I have is with the Fed,” he said. “The Fed is going wild. They’re raising interest rates and it’s ridiculous.”
“That’s not the problem,” he said of the trade standoff. “The problem in my opinion is the Fed,” he added. “The Fed is going loco.”
Channel that inner Ron Paul, MAGA Man! We need no loco banqueros. End it!
Fake Money and Fake Debt Make Real Problems
There a seldom-discussed phenomenon which, given enough time, will invariably affect any large institution. There evolve two classes of people therein. The first carry out the core functions of the outfit. The second consists of support and administrative functionaries, often important but not critical. Eventually, the second class almost always comes to control operations within the institution; their compensation usually outpaces the core function class.
In an example related to American education, we once again have the yearly college salary numbers from CUPA. Interesting, telling numbers.
They’re doing better with the Trump economy.
But the Executive-level Admins are doing much better.
Some of these jobs are arguably important to a large school. But, who does the educating??? And all of the professorial numbers ignore the trend of the adjuncts, poorly (POORLY) paid and overworked – teaching 50% of all classes.
Young people, please consider all of this along with the rising, always rising costs associated with the process. And consider the following trend:
With the improving economy and the diminishing quality of the degrees, more and more companies and whole industries are abandoning the quest for credentials.
No diploma? No problem.
More and more companies are scrapping college degree requirements for jobs. They’re not saying you shouldn’t seek higher education, but not having a degree won’t be a barrier for you to work in certain jobs at their companies.
Some of the 15 big companies saying “no bachelor’s degree is fine” include Google, Nordstrom, Bank of America, Ernst & Young, IBM and Apple.
The changes are coming as job seekers, as well as high school graduates, consider whether college is worth the skyrocketing cost.
Something to think about, degree or not.
Also, and semi-related, a few lower schools are bringing back the paddle.
An area school recently sent home consent forms informing them of a new corporal policy at an area school. The superintendent says they’ve received a little over a hundred forms back, a third of them giving consent to paddle their child.
“In this school, we take discipline very seriously,” said Jody Boulineau, Superintendent of GSIC.
GSIC is going old school with a new policy for this year.
“There was a time where corporal punishment was kind of the norm in school and you didn’t have the problems that you have,” the Superintendent said.
You heard that right. Georgia School for Innovation and the Classics, a K through 9 charter school, is bringing back paddling students as a form of discipline.
Younger young people, think about that.
If students engage in anything even resembling “violence,” even in self-defense, they may rest assured that they will be disciplined, up to and including possible arrest. But, what’s forbidden to the child goose is a-okay for the sinecure gander. And, this particular school, new and innovative as it might be, is in a district with an utterly dismal academic success record. So, the kids can expect to literally take a beating in exchange for a fraudulent, substandard education, for that unnecessary credential.
During another age and in another century, your young author was a frequent target of the “board” of education. As such I can kind of sympathize with the administrators (always the ones in charge) who seek to use it again. However, if I recall correctly, all those whacks did little (nothing) to deter boys from being boys. In other words, it usually doesn’t work. And much else has changed in the past 100+ years. Then, schools expected order just as students expected instruction. Both usually got what they needed. Today, it’s a different, worn and sad story.
All things to think about, if that’s still acceptable.
When you make more but have less to spend because of the increasing cost of living.
The cost of living in the U.S. is rising at its fastest rate in 10 years, according to new data from the Labor Department.
The data, released Friday, revealed that consumer prices increased 2.9 percent in July from the year before, meaning Americans may be earning less than they did at this time last year.
The consumer price index, meanwhile, rose 0.2 percent last month, which analysts largely attributed to rising housing costs, CNBC reported. Annual inflation remained unchanged from June’s pace at 2.9 percent.
If only there was some private consortium of bankers we could pin this phenomenon on, excluding food and gas, of course – no one needs those…
The U.S. central bank has raised rates twice this year, in March and June, and financial markets overwhelmingly expect a hike at the next policy meeting in September.
The Fed currently forecasts a total of four rate rises in 2018, with investors expecting a final nudge upwards of the year in the benchmark overnight lending rate in December.
Ah, well, they know best.
It usually isn’t on display in the economic/business news. For instance, does anyone of any measurable intelligence really believe making every person on the planet a billionaire would change anything?
The world’s first trillionaire won’t come from cryptocurrency or some clever new app – he or she will become rich from asteroid mining.
That’s what bankers Goldman Sachs reckon, anyway – and several companies are now vying to be the first into space.
NASA estimates that the total value of asteroids out there could be up to $700 quintillion – equivalent to £75 billion each for us here on Earth.
That is the equivalent of saying a wolf told you that a fox was hungry and thus every chicken would be happier.
The asteroid mining idea is real and will happen – but not with every single body orbiting the Sun. Someone will likely become extremely wealthy as a result. If The Goldman Sachs has its way, then that someone will be in some way directly related to Goldman Sachs. (And why switch dollars to pounds in the same sentence?)
If the real obtainable value of the celestial rocks really is $700 quintillion, then expect Goldman, the Fed, and Mordor to arrange future loans in the septillion range, with derivatives betting on the order of decillions. Gresham’s Law dictates they would still find a way to kill positive growth with funny money.
The zeros behind the $ or the £ mean nothing. That’s why, even if one distributed the actual cash value of the space debris to each and every person on Earth, turning everyone into billionaires, nothing would change. Zimbabwe is replete with billionaires – who can’t afford lunch.
In his defense, Rob Waugh is an excellent jack-of-all-trades journalist; maybe economics just isn’t one of them. However, that should be (should be) a specialty over at Bloomberg, where they supposedly push business news.
Yet, they seem surprised we have inflation in America and that that cuts into wages.
U.S. inflation accelerated in May to the fastest pace in more than six years, reinforcing the Federal Reserve’s outlook for gradual interest-rate hikes while eroding wage gains that remain relatively tepid despite an 18-year low in unemployment.
The consumer price index rose 0.2 percent from the previous month and 2.8 percent from a year earlier, matching estimates, a Labor Department report showed Tuesday. The annual gain was the biggest since February 2012 and follows a 2.5 percent increase in April. Excluding food and energy, the core gauge was up 0.2 percent from the prior month and 2.2 percent from May 2017, also matching the median estimates of economists.
Fed. Fed. Fed. Fed. Rates. Rates. Rates. In Bloomberg’s defense, they are actually in the business of promoting certain interests, like those of Goldman.
The narrative works something like this: The economy is great, never stronger. Unemployment is low, officially. Wages are rising. Inflation is low. Oops, for completely unforeseen reasons, likely related to gas prices, it reared its ugly head. Time to raise rates on the flood of fiat. Sally School teacher in Iowa sees her recent raise evaporate. But that doesn’t matter; Goldman is mining the Moon or something.
They leave out: That all the money, almost all of it, is fake, based on debts that cannot be repaid. Everything in the economy depends on said fake money (it’s like mixing in helium for a dive – a little boosts depth range, too much kills). Wages are always one of the last things to “catch up” after a correction – only just in time for the next correction. Real wage buying power (how much the pay is really worth) only this year returned to levels last seen in 1973. 45 years of loss, and the new, temporary gains are now squashed by inflation.
It’s almost like we’ve entered into a terminal phase wherein the wages will not, cannot recover. Workers and earners see their purchasing power decline to ancient levels, their standards of living plunge toward serf-like proximity.
When this all hits the fan the next time around, it may hail the curtain call for the banksters. That would be the good news.
Maybe there’s a way to relocate the banksters and their political pets to the heavens? Metro/UK.
Maybe the new editors at the WSJ can reinstitute some truth controls. There’s a glaring error in this story:
The Social Security program’s costs will exceed its income this year for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits.
This is three years sooner than expected a year ago, partly due to lower economic growth projections, according to the latest annual report the trustees of Social Security and Medicare released Tuesday. The program’s income comes from tax revenue and interest from its trust fund.
The trust fund will be depleted in 2034 and Social Security will no longer be able to pay its full scheduled benefits unless Congress takes action to shore up the program’s finances. Without any changes, recipients then would receive only about three-quarters of their scheduled benefits from incoming tax revenues.
The report also said that Medicare’s hospital insurance fund would be depleted in 2026, three years earlier than anticipated in last year’s report. Absent changes, the program then would be able to handle 91% of costs.
The nation’s aging population is boosting the costs of Social Security and Medicare, while revenue gains lag due to slower growth in the economy and the labor force.
Where, exactly, is this $3 Trillion reserve fund, this “lockbox,” located? My guess would be in that D.C. museum with the Constitution, the dinos, and other things that don’t exist.
The “reserves” are but an accounting trick which, simply put, is just more debt for you and your kids to enjoy in the future.
There is probably some hidden truth in the story if one knows what to look for. Those dates in the late 20’s and early 30’s. Something else will probably fail around that time.
Yesterday I rang a bell about Marvin Goodfriend (who, it turns out, is not a good friend) and his scheme to rob and enslave you. He’s pushing a cashless society, among other things.
I then recalled a link from the old FP News site about rebellion against the same in Sweden. The Swedes.
It’s interesting that I just today ran a piece at FP about Sweden’s sudden call to vigilance about possible war and civil unrest.
Other countries in Europe are quietly doing the same thing even as Americans gain more weight and more tattoos.
These things are all interrelated, thanks to the never-ending gifts of globalism. Ready or not, war and financial crisis are coming to the West. Stefan Molyneux and Peter Schiff discussed part of that and more yesterday:
Watch that, all of it. They discuss the coming crash, the debt, the stupidity, the end of retirement, immigration (both ways), and the near-certainty of full-fledged socialism in America. If you’re on your game, then you can answer the riddle as to why those evil men like GoodFIEND want negative interest rates, even in a time when central banksters are saying things are great and rates should rise a bit. If not, then I suggest maybe another highly respected web log might be more to your liking. Maybe not to read but just one with a bunch of cat pictures. Cats with tattoos. Obese cats with tattoos…
Today Stefan talked to Joseph M. Humire about that socialist disaster in Venezuela (watch that). If you’ve been following along at FP the past year or so, then you know that’s a pet subject and a microcosm of what American’s can look forward to. Turns out there is more to that tragedy than even I knew.
I was going to make a video about all this but what you see here is probably as close to a synthesis as I’ll come for now.
Solutions? Well, you had that lovely election the other day so everything should be fine, right? You took my advice and wisely elected Ron Paul President in 2008, remember? Or not. Schiff is probably right. Barring some great 27-D chess move by the Trump, the suffering masses will be penalized with even more of the same insanity that created these deep problems in the first place.
I have other real solutions (two really) which I will hold tight for the time being. Three predictions as well.
PS: another great column at TPC is coming along any hour now. That, then, here.