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PERRIN LOVETT

~ Fiction, Freedom, and The West

PERRIN LOVETT

Tag Archives: economics

Welcome to the Service Economy

03 Tuesday Dec 2019

Posted by perrinlovett in News and Notes

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decline, economics, lies

Back when I was in high school, they lied to us about the bright shiny future of computers, easy work, and high pay. Reality is a little different.

To calculate the index’s value, the researchers split up the jobs created every month into those that pay above average and those that pay below average, and then divide one figure into the other. An index value below 100 means there are more lower-paying jobs relative to higher-paying jobs; a value above 100 means the opposite.

Other entities involved in the creation of the index are the Cornell University Law School, the University of Missouri at Kansas City, the Coalition for a Prosperous America and the Global Institute for Sustainable Prosperity.

This month, the index is just over 80, meaning there are 80 high-paying jobs for every 100 low-paying jobs. That’s a stark drop from 1990, when there were 94 high-paying jobs for every 100 low-paying jobs.

“There aren’t enough ‘good jobs’ to go around,” the Brookings Institution proclaimed earlier this month, when it released a report that found 44% of all workers are low-wage workers. These workers make a median pay of just $18,000 a year.

Meanwhile, the Fed is still gifting the Grabblers $100 Bn+ every day (EVERY DAY!). The thieves and the thieve-nots.

Graphing the Graft

09 Saturday Nov 2019

Posted by perrinlovett in Legal/Political Columns

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economics, government, spending

LRC has six graphs to put taxation and spending in perspective.

Combining state and local taxation with federal taxes, the increase is even larger. Taxation per capita at all levels combined grew 118 percent from $5,247 in 1960 to $11,461 in 2018.

The size and scope of government isn’t just growing to reflect population changes. After all, the US population only grew 81 percent from 1960 to 2018. And the federal government, embroiled in a global cold war amidst a rising tide of social programs, wasn’t exactly vanishingly small in 1960.

All six are eye-opening. But, as bad as they are, they’re still nothing like the rise in general inflation and the cost of usury sorcery. That 81% population increase is suspect as well, and for the same reasons associated with the money. Fake Americans and fake money make for a fake nation.

Sorcery “Goes Back Decades”

07 Thursday Nov 2019

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economics, Federal Reserve, fiat money, QE infinity!, sorcery

It is QE Infinity! The New York Fed’s funny money giveaway program was supposed to end on Monday. Instead, today the WSJ treats us to uncannily shoddy journalist revelations of a continuing nature.

The New York Fed added $115.14 billion to financial markets via temporary operations on Thursday.

The liquidity additions came in two parts. One was an overnight repurchase agreement with eligible banks totaling $80.14 billion, and the other was via a $35 billion 14-day repo. Eligible banks didn’t take all the liquidity offered by the Fed in the one-day operations, but in submitting $41.15 billion in Treasurys and mortgages for the latter operation, their interest in securing liquidity exceeded what the Fed was willing to provide on Thursday.

Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a short-term loan of central-bank cash, collateralized by the bonds. The Fed’s injections are aimed at ensuring that the financial system has enough liquidity and that short-term borrowing rates remain well-behaved.

Recent Fed market interventions aren’t designed to serve as stimulus. While the sizes of recent operations are large, the practice of adding and subtracting liquidity from short-term markets to manage short-term interest rates goes back decades. The Fed is also buying Treasury bills to increase the size of its balance sheet and to add permanent liquidity to the financial system, and it hopes that effort will reduce the need for large temporary interventions.

Not a stimulus, just a behavior modification. Okaaaaay. Adding massive permanent liquidity (to a supposedly healthy system, well-behaved) in lieu of temporary interventions. Hmmmm.

Make of all that what you will. At this point, the dates, numbers, and words simply cannot be trusted. It was $165 Bn per day for 50 days. Now, is it $165 Bn for 53? Or, is it $115 Bn for 53? Or something else forever? Splitting the crazy differences … $140 Bn for 51.5 days = $7,210,000,000,000.00*. Or, they are now printing the fiat at the rate of 1 2019 GDP every five months. Or! 1 2019 SLFR BASE every three weeks. King Midas would be jealous.

*If it is 165/53, then we’re at $8.745 Trillion through today.

Soon…

Why is “raise taxes” always the go-to?

06 Wednesday Nov 2019

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debt, economics, taxes, War

Another Boomer reads from the worn, old script.

Dalio, who founded the hedge fund in 1975, told CNBC from the Greenwich Economic Forum that the national debt, pension liabilities and health-care liabilities will ultimately have to result in higher taxes since defaulting isn’t an option.

“We’re dealing with almost a currency issue, longer term, in terms of what is the value of currency when those liabilities – not only the debt liabilities, but the pension liabilities and the health-care liabilities, which are like debt. They are promises that have to be paid – they will either be paid by higher taxes or they’ll be not paid and defaulted on,” he said.

“I don’t think they will be defaulted on,” he added. “I think by and large they’re going to be paid, but if they raise taxes too much, then it changes the nature of that economics.”

Category error. It’s not “almost a currency issue.” It’s not economics. It’s sorcery. Including everything that could be a liability, there isn’t enough wealth left to tax. Default is a given. The choice is to do it peaceably and gracefully or to suffer collapse and war. And, war is the default condition.

The “Darker Aspects” of Financial Sorcery

04 Monday Nov 2019

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collapse, depression, economics, sorcery

As if there’s any other kind. A good look at them and at what’s coming: The End of Money.

Money vs Real Wealth

I happen to know a good deal about our current system of money; how it is created, how it functions, its benefits and its darker aspects. I find it critical to remember that it isn’t actually “real”. Rather, it is a concept. Specifically, it’s a social contract. An agreement. Albeit one enforced at the end of a gun – or, as seen here, an eviction sheriff enforcing the local tax codes:

So while money isn’t “real” in itself, we value it because it is a claim on real things.

Having a lot of it currently entitles you to a great deal of privileges and power, which are a direct outcome of the spending of that money.

Money can be converted into houses. And cars. And massages. Also groceries, electricity, cell phone services and prescription drugs. These and ten billion other things are what money allows you to buy — the things you actually need or want.

So money is the means, but it is not the real wealth. ‘Real wealth’ is the things that money enables you to acquire.

Read on. There’s a reason I frequently rant about this stuff. Look at those charts. Prepare.

Will Sorcery Affect the Food Supply?

01 Friday Nov 2019

Posted by perrinlovett in Legal/Political Columns, News and Notes

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debt, economics, farmers, farms, food, sorcery

At a time when Americans are obviously eating more than ever, the farm industry requires massive subsidization.

The Agriculture Department projects that farm incomes will reach $88 billion in 2019 but nearly 40% of that — $33 billion — will come from trade aid, disaster assistance, the farm bill and insurance indemnities, according to a new report by the American Farm Bureau Federation (AFBF).

Why it matters: Farmers — a critical constituency for President Trump in the 2020 presidential election — are feeling the squeeze from China’s retaliatory tariffs, extreme weather and record-high farm debt that’s driving farm bankruptcies.

By the numbers: In a 12-month period ending in September 2019, Chapter 12 farm or fishery bankruptcies totaled 580 filings, up 24% from a year earlier and the most since 2011, when 676 chapter 12 bankruptcies were filed.

Wisconsin experienced the highest Chapter 12 bankruptcy filings at 48 filings, followed by 37 filings in Georgia, Nebraska and Kansas.

Iowa, Kansas, Maryland, Minnesota, Nebraska, New Hampshire, South Dakota, Wisconsin and West Virginia reported Chapter 12 bankruptcy filings on par with or above 10-year highs

One wonders if the banksters eat too. And this is all during the “boom” times.

“Like” and “Could Be”

29 Tuesday Oct 2019

Posted by perrinlovett in News and Notes

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debt, depression, economics, Federal Reserve, sorcery

Like, there could be a depression in this banana republic.

At this point, if the Federal Reserve stops juicing the economy, Pento argues, we could be looking at another depression.

“That’s why the Fed’s panicking,” he said. “If anybody still believes they’re omniscient or omnipotent or know their butt from their elbow, that’s over.”

The Federal Reserve is expected to lower its benchmark interest rate this week by 25 basis points, the third such cut in three months. According to the minutes from the Sept. 17-18 meeting, “downside risks had become more pronounced since July,” yet “several participants” wanted the Fed to provide more clarity on when the response to those risks, including “trade uncertainty,” would end.

The fun side of sorcery – nearly unlimited free fiat for the banksters!

The dark side – 100% rates for the working poor!

And yet today, just a few years later, many of the same subprime lenders that specialized in the debt are promoting an almost equally onerous type of credit.

It’s called the online installment loan, a form of debt with much longer maturities but often the same sort of crippling, triple-digit interest rates. If the payday loan’s target audience is the nation’s poor, then the installment loan is geared to all those working-class Americans who have seen their wages stagnate and unpaid bills pile up in the years since the Great Recession.

The crisis is too big not to fail.

This is Becoming Tiresome

24 Thursday Oct 2019

Posted by perrinlovett in Legal/Political Columns

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debt, economics, Federal Reserve, sorcery

Just the other evening, I was talking to MB about some TPC business. I relayed that I was tired of the daily dose of debt news from the WSJ – every day bringing another installment of the REPO BUCKS game as if it was something completely new. Then, today, the announcements changed.

The Federal Reserve Bank of New York is boosting the amount of temporary liquidity it is willing to make available to financial markets starting this week, the bank said on Wednesday.

It said that as of Thursday, the minimum size of its overnight repurchase-agreement, or repo, operations will rise to $120 billion, from what had been at least $75 billion. Longer-term operations will rise from a minimum daily offering size of $35 billion and go up to $45 billion in interventions scheduled for Thursday and Oct. 29.

Do the math! Now, every single day, they can (and will) add $165 Billion in fake money for the banks. Why? Honestly, who cares? How long will this continue? Who cares? $165 Bn is the near-equivalent of the entire nominal GDP just 100 years ago. Every day.

Sorcery.

Likely to Get Much Worse…

23 Wednesday Oct 2019

Posted by perrinlovett in Legal/Political Columns, News and Notes

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economics, economy, Federal Reserve, sorcery

The narcotic references speak for themselves.

“The repo market has been drugged into submission by the Fed,” said Jim Bianco, head of Bianco Research. “That’s fine for a while. But what I am getting concerned about is that they’re not figuring a way to get it off the drug and get it back to normal, and that will be a problem longer term for them.”

Investors have long complained about the Fed hand-holding the market, injecting trillions of dollars in liquidity and keeping interest rates artificially low during and after the financial crisis.

This is a different situation, though.

Rather than looking to goose the economy back to health, the Fed is now using its balance sheet to make sure banks have enough reserves and an adequate amount of capital is flowing through the system to keep things running efficiently. The effort also is aimed at keeping the Fed’s own overnight funds rate within the 25 basis point target range it employs.

It’s like an addict who has to keep getting the fix, not for a new high, but to keep from going into withdrawals. This is your economy. This is your economy on sorcery.

RPC explains that this is a global and system-wide issue.

Today central banks not only support bond prices by heavy purchases, they do the same thing in the equity market. The Bank of Japan, for example, owns 77.5% of Japan’s ETF (Exchange Traded Fund) market, having bought nearly 23 trillion yen of the ETF market since 2013. https://www.reuters.com/article/us-japan-economy-boj/kuroda-defends-japan-central-banks-etf-buying-sees-no-near-term-exit-idUSKBN1O602Q

The Federal Reserve owns assets equal to 20% of US GDP. The European Central Bank owns assets equal to 40% of the euro-zone economy. The Bank of Japan’s asset hoard now exceeds the Japanese economy in size. https://www.bloomberg.com/news/articles/2018-11-13/bank-of-japan-s-hoard-of-assets-is-now-bigger-than-the-economy

With this background, we can now get on with the story.

For a decade we have had a stock market based on (1) the profits from lower labor costs by producing offshore the goods and services corporations sell to Americans, thereby destroying the American middle class and the tax base of cities and states, (2) the use of corporate profits for buying back the corporations’ stock, and by borrowing to buy back stock, thus decapitalizing the corporations in order to support stock prices, managerial bonuses and shareholder capital gains, and (3) Quantitative Easing (QE) which pumped trillions of dollars into US financial markets, thus pushing up the prices of financial assets. If the money the Federal Reserve created in order to support the solvency of the “banks too big to fail” had gone into the economy, hyperinflation in consumer prices would have been the result. Instead the money caused inflation in the prices of financial assets, and this is the explanation of why a small percentage of people—shareholders—have accumulated most of the gains in income and wealth.

The extraordinary increase in the inequality of incomes in the United States is the consequence of using economic policy to support the New York Banks, which has meant supporting the prices of the bad assets on their balance sheets.

In America today truth gets no respect from anyone whether right, left, liberal, conservative, Democrat, Republican. The idiot Hillary has alleged that the only sane Democrat—Tulsi Gabbard— is a Russian agent! It blows the mind. And the presstitutes treat the absurd allegation as if it is a fact.

Right on all counts. The sorcery has begotten inequality that begins to look like slavery. Most people seem okay, at present, with the situation. One wonders when and how that will change. Ask any addict – the crash always comes.

Enter the Sag: “This cycle is fading”

18 Friday Oct 2019

Posted by perrinlovett in Legal/Political Columns, News and Notes

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debt, depression, economics, Federal Reserve, sorcery, the great sag

The sorcery has its limits. Ray Dalio says we’ve found them.

Hedge fund owner Ray Dalio said the global business cycle is in a “great sag” and the world’s economy holds at least two parallels to the 1930s.

Speaking a CNBC-moderated panel at the IMF and World Bank annual meetings in Washington, D.C. on Thursday, Dalio said it was now too late for central banks to make much difference as economies enter a natural downturn.

“This cycle is fading, we are now in the world in what I would call a ‘great sag’,” said Dalio, adding that monetary policy, and especially interest rate reductions, were unlikely to offer much stimulus.

“Europe is at the limitation of that, Japan is (too) and the U.S. doesn’t have much to go on for that,” he told CNBC’s Geoff Cutmore.

Dalio said the world was also experiencing the biggest wealth gap since the 1930s and that was creating political stress.

He goes on to mention geopolitical war. One or more of those may strike a little closer to home than most would think possible. It’s not going to be pretty, but it is survivable. Now, what was the ancient punishment for sorcery? As the cycle fades, may the fires rise.

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Perrin Lovett

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