United States

One week ago, we explained what happened to both the US economy and the stock market the last time the Fed tightened financial conditions back in 1936 when it, like now, erroneously thought the economy was strong enough to sustain it:

"The Fed exit strategy completely failed as the money supply immediately contracted; Fed tightening in H1’37 was followed in H2’37 by a severe recession and a 49% collapse in the Dow Jones."

This is what it looked like courtesy of BofA strategist Michael Hartnett:

One of Donald Trump's recurring refrains ever since the San Bernardino shooting, ostensibly the one which prompted him to declare he would bar Muslims from entering the country - an announcement which has unleashed an unprecedented media scandal - is that the "US is at war." Whether or not that is the case remains to be seen (we expect tens of thousands of US troops to be deployed soon, this time  without the protective cloak of CIA "covert ops") but what is certain is that Trump is merely proposing to do what Democrat Jimmy Carter did back on April 7, 1980, when he banned Iranians from the

One month ago, when Austrlia released job numbers that too ridiculous to believe - they were a 6 sigma beat - the local mainstream media - very much unlike that of the US - threw up all over the numbers.

This is how Australia's primary media outlet, ABC, slammed the number with the following excoriating reaction of the economic propaganda, which would certainly have been censored in the US.

A fall in the unemployment rate from 6.2 per cent to 5.9 per cent in the space of one month? Be sceptical. Treat with extreme caution.

 

Freedom of the Press Foundation is announcing a new crowd-sourced fundraising campaign called the Transparency for Police Fund, which "will fund local journalists around the United States to file Freedom of Information Act (FOIA) and other transparency lawsuits aimed at uncovering police misconduct and video evidence of brutality against unarmed men and women."

Submitted by Eugen von Bohm-Bawerk via Bawerk.net,

We have argued for a long time that 2016 will probably be a year of recession in the US and the Federal Reserve’s intent on raising rates will only help expedite it. We believe the current rate cycle will be short lived as the Federal Reserve is constrained by the heavy debt load weighing on the US economy. Or more specifically, the large share of unproductive and counterproductive debt that drain the US economy for resources.