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. 

My new, deeply provocative OEN piece is a passionate rebuttal of a Common Dreams article whose spin doctoring angered and disturbed me. How? By citing a "world-changing choice" on climate between Sanders and Clinton but then sweeping away a huge body of expert evidence favoring Sanders, and even hinting the need for climate "pragmatism" favors Clinton. Perhaps my best--and most passionate--piece of political analysis.

Would Turkey Dare Without Washington’s Approval?

http://sputniknews.com/analysis/20151211/1031591091/us-defense-analyst-su-24-downing.html

The post Would Turkey Dare Without Washington’s Approval? appeared first on PaulCraigRoberts.org.

Below we present total business sales, which just dropped another 0.2% in October to $1.317 trillion - the lowest since March and down 2.7% from a year ago - without a comment (we have said all there is to say about the US already being in a recession), suffice to say: clearly the time for a rate hike that "boosts confidence in the economy" has come.

The writing has been on the wall for a few days/weeks, but it appears a combination of global FX and equity turmoil and domestic corporate debt market collapse is finally starting to roil US equity markets. The Dow is down over 600 points in the last week or so, bond yields are collapsing, the USDollar is tumbling, crude is crashing, and junk bonds are in free-fall.

As expected in the aftermath of the Third Avenue gating (and as previewed weeks and months ago) Junk debt is getting destroyed:

And stocks are catching on: