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The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars

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What would you say if we told you that Americans are nearly 60 trillion dollars in debt? Well, it is true. When you total up all forms of debt including government debt, business debt, mortgage debt and consumer debt, we are 59.4 trillion dollars in debt. 2008 should have been a major wake up call that resulted in massive changes. But instead, our leaders just patched up the old system and reinflated the old bubbles so that they are now even larger than they were before. They assure us that they know exactly what they are doing and that everything will be just fine. Unfortunately, they are dead wrong.

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Dow Jones index soars to record high after US data shows job creation surge

Last updated five minutes ago

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Official figures reveal an extra 288,000 posts created in June with jobless rate falling to 6.1%

I wonder what type of jobs are being created? Can the jobs be sustained when the FED increases rates?

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17 Facts That Prove That The Quality Of Jobs In America Is Going Down The Drain

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Over the past decade, the long-term trends that are destroying jobs in America have accelerated. We have seen countless numbers of jobs shipped overseas, we have seen countless numbers of jobs replaced by technology, we have seen countless numbers of jobs taken by immigrants and we have seen countless numbers of jobs lost to the overall decline of the once great U.S. economy. Unfortunately, even though we can all see this happening, our “leaders” have failed to come up with any solutions. Needless to say, all of this is absolutely eviscerating the middle class. The following are 17 facts that prove that the quality of jobs in America is going down the drain...

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People Not In Labor Force Rise To New Record, Participation Rate Remains At 35 Year Lows

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Those following the labor force participation rate (which as even the Census Bureau showed is declining not so much due to demographics but due to older people working longer and pushing younger people out of the labor force as we showed yesterday) will hardly be surprised to learn that alongside today's impressive NFP print, the reason why the unemployment rate took another big step lower from 6.3% to 6.1%, was once again as a result of the number of people not in the labor force, which in June rose to a fresh record high of 92,120K, up 111K from June.

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Is The Fed Going To Attempt A Controlled Collapse?

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As most Fed watchers know, last week was interesting because Janet Yellen, speaking at IMF came out and said something quite surprising. In a nutshell, she said “It’s not the Fed’s job to pop bubbles”. While many market participants immediately took this to mean, “To the moon, Alice!” and started buying equities hand over fist, there’s another possible explanation for Mrs. Yellen’s proclamation of unwillingness: The Fed could be preparing to do exactly what it said it wouldn’t. Bringing forward the next leg of the cycle, may well be on the Fed’s agenda.

If the Fed pops the bubble would the Fed be insolvent?

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Bank Of Japan Prepares To Buy Nikkei-400 ETF To Boost Stocks

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It is no secret that unlike other banks who, while directly intervening in the bond market only manipulate equity prices in relative secrecy (usually via HFT-transacting intermediaries such as Citadel), the Bank of Japan has historically had no problem with buying equities outright, traditionally in the form of REITs and equity-tracking ETFs. Which explains why overnight it was revealed that in order to boost the stock market, pardon, economy, the Bank of Japan is preparing to purchase exchange-traded funds based on the JPX-Nikkei Index 400 as an "option to boost the impact of unprecedented easing," according to people familiar with BOJ discussions.

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http://market-ticker.org/akcs-www?post=229177

Heh heh heh....

The game is afoot.

Remember all the prattle about zero interest rates and QE, and how it was "boosting" the economy?

Well how come it hasn't, and how come it isn't?

Maybe you can explain why in the last quarter for which we have data the net economic impact including QE, which totaled about $250 billion during that time, was a negative $500 billion.

Note that the $250 billion was effectively "added debt"; without it there's no way to know if the borrowing would have happened at all.

Also note the right side of that graph.

QE1 (Dec 08 to March 10) correlated with a NEGATIVE delta in GDP. While it could probably be defended as an attempt to arrest the negative delta in debt accumulation that negative delta in fact was all in financial products, which was both necessary and desirable (for everyone except the big banks!)

QE2 (Nov 10 to June 11) failed to raise the GDP gross run rate (red line)

BETWEEN QE2 and QE3 gross GDP advanced. When QE3 began and progressed (Jan 1st 2013 to now, roughly) it declined.

However, indebtedness increased, so the net-net GDP in fact decreased.

The Fed has maintained repeatedly that QE "helps the economy." The facts say it does no such thing; gross economic output trends downward to flat when QE has been in process, and net-net economic progress is negative.

They lied.

What QE did was boost asset prices -- but not economic activity.

In other words QE was nothing more than intentionally blowing a bubble by widening the band between economic output and debt accumulation.

The need for that illusive growth.

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Edited by interestrateripoff
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Wall Street's escape velocity scam.

There is nothing more predictable than the bevy of Wall Street economists who come charging out of the blocks early each year proclaiming that money printing by the Fed will finally work its magic, and that real GDP growth will hit “escape velocity”. But this year the markdowns have come fast and furious. After the disaster of Q1 and the limp data reported for Q2 to-date, the revised consensus outlook for 2014 at 1.7% is already below the tepid actual results of the last three years. So much for the year when “screaming” growth was certain to happen.

The graph below is all the proof that is needed to demonstrate that Wall Street has become a pure Fed enabled casino. If honest “price discovery” was actually functioning, the stock market would not be at nosebleed heights, capitalizing hockey sticks that never materialize. Instead, it would be discounting a badly impaired economy that is stuck in a sub-2% rebound—and one that is dangerously at risk owing to the third and greatest financial bubble the Fed has created during this century.

http://davidstockmanscontracorner.com/the-wall-street-escape-velocity-scam-gdp-forecasts-fizzling-for-fourth-straight-year/

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Yellen is speaking tomorrow, and the day after. Can't find the thread where it's suggested Central Bankers going back to opaque style - rather than the open-and-spell-it-out guidance of recent years.

Yellen, who will go before the Senate Banking Committee early Tuesday to deliver the latest report to Congress on monetary policy, could take a hawkish stance on raising interest rates in response to strong June jobs data, analysts said.

"Given some of the strong data that we've had recently since her last speech, there's at least some expectations of her acknowledging that," said David Thielke, interest rate strategist at Nomura Securities in New York. "If anything, the risks are skewed to the hawkish side."

Yellen is also set to speak before a House committee on Wednesday. The Fed chief delivers testimony on monetary policy twice a year to Senate and House committees.

http://www.cnbc.com/id/101832963

Not got much hope though....

2013 Yellen strokes the main bubble in early years... too risky to pop - on the stratosphere glide path. http://www.reuters.com/article/2013/10/30/us-usa-fed-yellen-insight-idUSBRE99T05G20131030

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Hershey upping their prices by 8%, lots of reports outside of the main US press that there is eyewatering inflation in basic food goods, what no defaltion?. Half the world pissed off about being spied upon, BRICS nations arranging their own financial backstop away from the USD/IMF, blowback in the Middle East and a front line replace all plane that is a dead duck, bubbles beyond any reasonable valuation in every market.

Money printing has already bent the economy, politics and the decision making process, maybe the next round will break them, for good. The FED is not the solution it is the problem.

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It's the debt interest, stupid. Why the Fed needs to create a ton of debt to get a pound of growth.

http://davidstockmanscontracorner.com/inside-the-doom-loop-the-daunting-numbers-on-debt-and-interest/

Inside The Doom Loop: The Daunting Numbers On Debt And Interest

by Charles Hugh SmithJuly 15, 2014

Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt.

If you want to know why the Status Quo is unsustainable, just look at interest and debt. These are not difficult to understand: debt is a loan that must be paid back or discharged/written off and the loss absorbed by the lender. Interest is paid on the debt to compensate the owner of the money for the risk of loaning it to a borrower.

It’s easy to see what’s happening with debt and the real economy (as measured by GDP, gross domestic product): debt is skyrocketing while real growth is stagnant. Put another way–we have to create a ton of debt to get a pound of growth.

There is no other way to interpret this chart.

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IMF Says Fed May Have Scope for Zero Rate Past Mid-2015

Will anyone voluntarily increase rates?

I think we all know the answer to that.

The bankers wont raise rates until they are forced to.

If you ask me the chatter the BoE is giving us about rates it to try and control the London mega bubble before it collapses and as pre-election posturing to help the tories win savers vote .

If they wanted to raise rates, they'd simply raise them. They know what happens when rates go up.

Will these schemes work.

NO.

Will I ever vote tory again.

NO.

Will I celebrate the day it collapses.

YES. Jelly and Ice cream for us all.

Edited by TheCountOfNowhere
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IMF Says Fed May Have Scope for Zero Rate Past Mid-2015

Will anyone voluntarily increase rates?

They can't raise rates now, they're trapped. The shadow banking system will fall to pieces again this year or next - a Chinese property crash the most likely catalyst - triggering a worldwide stock market/asset price slump and then they'll be forced to hyperinflate.

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Does anyone have any thoughts on what the US GDP figure will be this week.

Originally the initial figures showed that the 1st quarter GDP grew at over 3% but was then later revised down to a negative figure.

Do you think they will do the same again - give a very positive figure and then later downgrade it a few months later? If there are two quarters of negative growth then the US will be technically in recession. Or do you think that the US is booming... like the UK?

I think they got away once with an overly optimistic GDP figure so what is stopping them doing it again?

No doubt the US markets will react to the figure whatever it is.

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It's the debt interest, stupid. Why the Fed needs to create a ton of debt to get a pound of growth.

http://davidstockmanscontracorner.com/inside-the-doom-loop-the-daunting-numbers-on-debt-and-interest/

That's nonsense.

The USD is the world reserve currency. It doesn't just support US GDP it supports global GDP.

Whoever wrote that is a moron

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