Business

While the warning flags are raging in Illinois and Connecticut, JPMorgan's Michael Cembalest states that New Jersey's problems are "not mathematically solvable." The stunning admission from a status-quo-sustaining bank that is “very focused on the total indebtedness of US states," should be worrisome enough but as Cembalest explains the answer to a debt problem is not always piling up more debt; the issue is to address the root of the problem, which can be a delicate and at times politically incorrect topic.

Following this week's FOMC Minutes shows, which violently repriced June rate hike odds from 4% to 30% and July from 20% to 50%, the cries of lenienecy have begun, and nobody is doing so louder than Deutsche Bank which in an overnight credit summary note tries to make it clear that "the market is not ready for a June hike."

Authored by Bill Bonner of Bonner & Partners (annotated by Acting-Man's Pater Tenebrarum),

High on the Hog

Much of The Deep State's growth is recorded in the pages of the Code of Federal Regulations (CFR). This tracks all the laws laid down by successive governments.

Lower extremities of typical Deep State enforcer

Submitted by Jim Quinn via The Burning Platform blog,

Two charts revealing how stupid the average American remains.

Between student loan debt projected to hit $17 trillion (the same today's US GDP) by 2030, and the fact that over 40% of student borrowers aren't making any payments on their loans, the table is already set for a new financial crisis of epic proportions.