“How is money created? If you ask average people on the street this question, most of them have absolutely no idea. This is rather odd, because we all use money constantly. You would think that it would only be natural for all of us to know where it comes from. So where does money come from? A lot of people assume that the federal government creates our money, but that is not the case. If the federal government could just print and spend more money whenever it wanted to, our national debt would be zero. But instead, our national debt is now nearly 16 trillion dollars. So why does our government (or any sovereign government for that matter) have to borrow money from anybody? That is a very good question. The truth is that in theory the U.S. government does not have to borrow a single penny from anyone. But under the Federal Reserve system, the U.S. government has purposely allowed itself to be subjugated to a financial system in which it will be constantly borrowing larger and larger amounts of money. In fact, this is how it works in the vast majority of the countries on the planet at this point. As you will see, this kind of system is not sustainable and the structural problems caused by such a system are at the very heart of our debt problems today.”
“U.S. border patrol agents have incredibly dangerous jobs and they are the first line of defense for our homeland. But instead of training and equipping them properly to defend themselves and all the rest of us, the Obama administration is actually attempting to turn them into spineless jellyfish. If you can believe it, U.S. border patrol agents are now actually being trained to run away and hide if they encounter an “active shooter” in a public location. If they are cornered by the shooter, they are being trained to “throw things” at the shooter. What in the world is happening to this country? We might as well not even have borders. The Obama administration has made it abundantly clear that it has absolutely no intention of protecting our borders or of enforcing our immigration laws. Protecting our borders is one thing that the U.S. Constitution requires the president to do, but Barack Obama and several other past presidents have steadfastly refused to do this. So just what in the world is going on here?”
Will India Implement The First “Executive Order 6102″ Of The 21st Century?
“It appears that finally after months of “being long of Gold in Indian Rupee terms” having proven to be quite a resilient and profitable strategy, the Indian state has also figured it out. And they are unhappy. Because to them, the key reason for the rupee weakness has nothing to do with the actual economy, and all to do with the Indian population trying to protect against currency debasement coupled with inflation: i.e., purchasing gold. And they will no longer allow it.”
Via Zero Hedge
“In the past 24 hours, some readers have been surprised to learn that as Jeff Reeves of InvestorPlace states, total Q2 CNBC viewership as calculated by Nielsen, has tumbled to to the lowest it has been since Q3 2005. This merely confirms that the trendline in our periodic observations of CNBC traffic was more than merely seasonal or VIX-related: it has been one long secular decline, peaking in the quarter of Lehman’s demise and down hill ever since. “
Via Zero Hedge
Stockton CA Bankrupt; Unions (Not Housing Bust) Primarily to Blame; Pension Death Trap for Cities; What’s the Solution?
“The city of Stockton, California, is Bankrupt. It has stopped making bond payments and will become the largest city in the US to seek protection via US bankruptcy law.
The bankruptcy was inevitable.
California law requires blame to be assessed. To be sure there is plenty of blame to go around.”
“Let’s turn our focus to New York for a second, but the problem described by the New York Post applies to California, New York, and every prevailing wage state. If federal funds are involved, it applies to every state.
Please consider NY’s $51.71-an-Hour Summer Job Program “
The ultimate source of funding for the Fallkill cleanup is a federal National Emergency Grant, whose terms require paying wages at the highest of the federal, state or local minimum wage or at the comparable rates of pay for individuals employed in similar occupations by the same employer.
The state Labor Department decided that this meant the prevailing wage for public-works projects. But “prevailing wage” is a term of art that actually means a pay rate based on collective-bargaining agreements between labor unions and private employers.
For the Mid-Hudson region, the prevailing hourly rate for laborers comes to $51.71 — $30.71 in wages plus $21 in benefits. But the temporary workers on the Fallkill won’t be union members, so they’ll get the entire amount as a wage, the Labor Department ruled.
“Jackie R. Whiton of Antrim had been a six-year employee at the Big Apple convenience store in Peterborough until a single transaction sent her job up in smoke.
The store clerk was fired after she refused to take a customer’s Electronic Balance Transfer card to pay for cigarettes.
Whiton said a young man came in to the store to buy two packs or cigarettes on May 29. When she asked him for his ID, he handed her his EBT card.
EBT cards are used for both food and cash assistance programs. There are two types of cards: one can only be used for food. The other can be spent on anything and used just like a debit card.
Whiton said she did not think EBT cards could be used to purchase cigarettes and refused to sell to him. The two “had a little go-around” as the line got longer behind him, said Whiton.”
Via Sentinel Source
“Yes, we all know that an end of world event could happen at any time. However I look at things statistically and realistically. I think I have a greater chance of getting into a car accident than getting hit with an asteroid or meteor. So I first focus on my little corner of the world. Even if there is a catastrophic event you still need to get to your “go” bag and/or vehicle with your G.O.O.D. bag and perhaps onward to your home or retreat depending on each situation. So what do you need for day to day survival? Because the world can come crashing around you and you alone. It may just be your end of the world event like an accident or illness. It may not be you but a close family member or dear friend. It may be a local isolated event like a flood or power outage or a fire – who knows? As a former boy scout, “always be prepared”.”
Via Survival Blog
New Disability Regs Limit Slope of Mini Golf Holes, Require Businesses to Admit Mini Horses as Guide Animals
“Although the Justice Department has extended the deadline for America’s hotels to comply with regulations regarding handicap access to swimming pools, new Americans with Disabilities Act (ADA) guidelines are already being applied at miniature golf courses, driving ranges, amusement parks, shooting ranges and saunas.
Among the provisions in the “Revised ADA Standards for Accessible Design,” which went into effect on March 15, is one requiring businesses to allow miniature horses on their premises as guide animals for the disabled. Another limits the height of slopes on miniature golf holes.”
Via CNS News
Headline Durable Goods Beats, Core Ex-Transports And Capital Goods Shipments Miss
“There is a little for everyone in the latest BWB (Baffle with BS) data point – durable goods. The headline number printed at +1.1%, on expectations of a 0.5% rise, up from a downwardly revised -0.2% (from 0.2%). So a beat even as the baseline was cut. However, when stripping out the extremely volatile transports number, the result was very different and at +0.4%, it was a miss of expectations of 0.7%, although still up from the April -0.6%. Finally, actual Capital Goods shipments excluding non-defense rose 1.6% on expectations of a 1.9% increase. In other words: a beat when including volatile fluff, a miss on the core. The inventory/shipments ratio slipped to 1.63, lowest reading since Dec. 2011; may “imply weaker times ahead,” says Bloomberg economist Rich Yamarone. Is this good enough for the Fed to push on with the NEW QE: it is unclear. Which is why next Friday’s NFP will once again be watched by everyo8ne and be the latest “most important payrolls number ever.” “
Via Zero Hedge
Durables: All Taking Flight!
“Inventories are bad, not good. They represent expected forward demand, of course, but the bad is that they’re “idle capital having been spent but not yet put into productive use.” If it never goes into productive use, or only does so at a big discount, then the damage is compounded.
However, the two indicator items I look at in the report as a forward demand indicator both firmed up a fair bit — computers and communications equipment.
I rate this one as a yawner; outside of the delineated categories orders and shipments were basically flat, with the big movers in defense and non-defense aircraft (both strongly positive, but both also very volatile.)”
Via Market Ticker