Robukuni
There are two questions I need to pose that no one responds to directly, one
hopes you will.
{a} There are those arguing that Obama care is going to be paid by the money
United States uses in wars, but does United States actually invest its money
into any of these wars?
{b} Now that The Obama administration has decided to build the economy on
raising the debt ceiling, Let us not worry about its raising for that is
not the problem I can explain to you to understand. Let us just raise the
crap out of it and borrow the entire future of our children out. And I am
fine with that. But as United States keep on borrowing the people Americans
are borrowing from are also raising the debt they hold in United States.
That raising is based on its ability to pay. Now major lenders like China
have started to be worried that their money can be in danger for United
States is walking very closely to default. Suppose this fear grows into the
lenders and they themselves decide not to raise the loan ceiling, what is
United States going to do? You see Congress can only burn American
population by raising the debt ceiling it does not have the power to force
the lenders to raise the money they lend out.
Good morning sir.
EM
On the 49th
Thé Mulindwas Communication Group
"With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy"
Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"
From: [email protected]
[mailto:[email protected]] On Behalf Of Robukui .
Sent: Monday, October 14, 2013 1:14 AM
To: UAH
Cc: [email protected]; G_NET; [email protected];
[email protected]; [email protected];
[email protected]
Subject: Re: {UAH} THE TRUE STATE OF THE US ECONOMY
Comrade,
The US Fed jumped in and pumped close to 16 Trillion dollars into the World
Economy when the hand of God was needed.
People have made money under jadwong.
Viele GruBe
Robukui
2013/10/13 Herrn Edward Mulindwa <[email protected]>
The True State of the US Economy
Posted on October 13, 2013
<http://sorendreier.com/the-true-state-of-the-us-economy/> by Soren Dreier
<http://sorendreier.com/author/soren-dreier/>
Author: PressTV
Description: money83
The fact that stock prices have been drifting lower, doesnt prove that the
economy is headed for recession. Nor does political dysfunction (government
shutdown), droopy home sales, plunging confidence, chronic high
unemployment, rising levels of extreme poverty, unprecedented public
dependence of food stamps, weak personal consumption, stagnant wages,
falling middle class incomes, or gaping inequality.
They may show a country that is on the wrong track and has its priorities
mixed-up, but they dont show that another recession is imminent. Even so,
its easy to wonder how bad things have to get before the economy more
closely reflects the mood of the country which is relentlessly pessimistic.
To say that no one believes in Obamas recovery would be a gross
understatement. Obama supporters feel duped, misled, and despondent. Obama
is not the agent of change theyd hoped for. Hes expanded the wars, slashed
vital safety net programs, exonerated Wall Street criminals, and continued
the vicious attack on civil liberties. Hes done everything in his power to
boost the profits of the big corporations and banks, but hasnt lifted a
finger to help ordinary working people. And his efforts have paid off, too.
Just look at this from Huffington Post:
Corporate profits have increased by 18.6 percent over the past year
. In
fact, corporate earnings now represent a larger share of GDP than during any
other period in history
Real wages have declined by nearly seven percent in the past seven years,
according to data collected by the compensation research company Payscale.
In other words, US workers have less buying power now than they did before
the financial crisis
Payscales findings are just the latest in a slew of research that indicates
the sluggish economic recovery has not been beneficial for most of us.
Income inequality in the US is at a new high as skyrocketing income gains
for the top one percent are met by stagnating wages for practically everyone
else.
Okay, so youve heard it all before, but heres something you might not
know. At the same time the corporations and banks are reporting record
profits, Gallup surveys show that trust in all three branches of the
federal government remains on the lower end of what Gallup has measured
historically while Americans trust in banks fell to an all-time low of
18% lower than its level at the height of the global financial collapse.
(Gallup)
So, there is a tradeoff for all loot Obamas friends have been pilfering
from working people, and that tradeoff is trust. Americans no longer have
confidence in the government, the market or the justice system. Gradually,
that lack of trust will cross-over into the economy as wary consumers set
aside more of their earnings to protect themselves from the
government-corporate-racketeer oligarchy.
A slowdown in personal consumption will impact retail sales, durable goods,
hiring and capital investment. It will douse those green shoots with motor
oil and push the economy back into negative territory. And while that might
not happen in the next month or two, there are sectors of the economy that
are showing signs of weakness already. Take housing, for example, which is
progressively losing momentum as the year drags on. This is from an article
at Global Economic Intersection:
Existing Home Inventories are building, which clearly reflects a fall in
demand; and also possibly greater motivation amongst sellers to get out. The
inventory trajectory continues to closely shadow the pattern of 2010
. This
pattern suggests that the housing market is reaching a critical point at
which further intervention from both the Federal Reserve and Federal
Government may be needed to give it some more momentum.
Then theres this from Wells Fargo concerning the vanishing of investors
whove been driving the market for the last year:
The housing market is transitioning away from a rebound driven primarily by
speculative forces to one where the underlying fundamentals will be much
more important, Wells Fargo said in a report.
Over the past few years investor purchases have been the primary driver of
the housing recovery, helping clear inventories of foreclosed and
lender-owned properties and pulling home prices dramatically higher. Home
prices, which tumbled 33.7 percent from peak to trough using the
S&P/Case-Shiller Home Price Index, have since rebounded 16.3 percent and are
up 12.4 percent over the past year alone.
The swing in prices exaggerates the extent of improvement and likely
reflects the whipsaw effect of prices overshooting to the downside during
the worst of the housing bust.
And heres more from CNBCs Realty Check:
A potential stall in home price gains and a large drop in the number of
distressed properties have some big investors pulling out of the
single-family rental market
I think the investor market is largely past us, Doug Lebda, chief
executive of Lending Tree told CNBC. People were buying investment
properties three, four, five years ago. What I hear is thats slowing now.
Recent reports that Oaktree Capital Group is selling about 500 of its homes
added fuel to other reports that Och-Ziff Capital management is selling its
homes as well. Both declined to comment on the reports. Carrington Mortgage
Services stopped buying distressed homes late last year, claiming the market
was a bit too frothy
Weve been predicting that the speculators would exit the market eventually,
but we didnt think it would happen this fast. This news should have the
administration and the Fed sweating bullets as the Potemkin housing recovery
is the only sector that was showing improvement at all. A drop-off in demand
should show up in the October existing homes sales data which will put more
pressure on the Fed to increase its purchases of mortgage-backed securities
(MBS) even though bubbles are popping up everywhere in the financial
markets.
As Pimcos Mohamed El-Erian said in recent Bloomberg interview Virtually
every market is trading at artificial levels while investors are taking
more risk than is justified. Aside from historic levels of margin debt and
a splurge of corporate stock buybacks, there are also signs of froth in
fixed income and junk. Take a look at this from Reuters:
Retail money keeps flooding into loan funds, marking 66 straight weeks of
heavy inflows, according to Lipper data. Loan funds pulled in $1.3 billion
in the week ended September 18, during which the Fed surprised the markets
with its plan to keep on buying $85 billion of bonds weekly to keep rates
low and boost economic growth.
Loan fund inflows accelerated over the summer on expectations that the U.S.
central bank was about to reduce those bond purchases this month, keeping
interest rates rising. Issuance of collateralized loan obligations (CLO),
another key source of demand for leveraged loans, at $57 billion so far this
year already topped last years issuance.
Yipee! Another gargantuan asset bubble!
Thé Mulindwas Communication Group
"With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy"
Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"
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