Topic: The O'Bama Depression Thread

[oldcoastie6468]

So even less help when you need it.

[trapeze]

NEW YORK (CNNMoney)
Chipmaker Intel said Friday it plans to reduce its global workforce by over 5,000 people over the next year.

The company says the cuts are in response to "evolving market trends."

Intel (INTC, Fortune 500) said it will trim about 5% of its 107,600 global workforce by the end of 2014 -- 5,380 jobs.

"This is not a layoff," said Intel Spokesman Chris Kraeuter. "It's not a giant, one time action. This is a target employment rate for the end of the year."

Kraeuter said the cuts will come as a result of people retiring, redeployments, or people leaving voluntarily.

"We're making decisions on how to design our resources to better meet the needs of our business," said Kraeuter.

LINK

This is really shaping up to be a great year.

[richb]

If Wal-Mart is cutting back,  its bad. 

[trapeze]

I have to say that I am really concerned about the next six to twenty four months. If there are any positive signs I don't know where they are.

The world is going in the toilet. Fast. And we are weak. Very, very weak.

[trapeze]

The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.

This notice, for instance, appears on the online portal for Citigroup's C -2.74% Citibank unit for its China customers:

Important Notice:

1. Due to the system maintenance of People’s Bank of China, Domestic RMB Fund Transfer through Citibank (China) Online and Citi Mobile will be delayed during January 30th 2014, 16:00pm to February 2nd 2014, 18:30pm. As to the fund availability at the receiving bank, it depends on the processing requirements and turnaround time of the receiving bank. We apologize for any inconvenience caused.

2. During Spring Festival, Foreign Currency Transfer Transaction through Citibank (China) Online and Citi Mobile will be temporally not available from January 30, 2014 18:00pm to February 7, 2014 09:00am. We apologize for any inconvenience caused.

If you have any enquiries, please reach us via our 24-hour banking hotline at 800-830-1880 or credit card hotline at 400-821-1880. If you are calling from other parts of the world, please reach us at 86-20-38801267 for banking services or 86-21-38969500 for credit card services.

In short, there will be a three-day suspension of domestic renminbi transfers.  There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.

The specific reason given—“system maintenance” at the central bank—is preposterous.  It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.

A better explanation is that the country’s banking system is running dry.  Yes, there is an increased need for money in the run-up to and during the Lunar New Year holiday, but that is only a small factor.  After all, central bank officials knew this spike in demand was coming—it occurs every year at this time—and a core function of central banks is to manage seasonal liquidity fluctuations.  Moreover, the holiday has not started yet, and the PBOC, as that institution is known, could have added more liquidity to meet cash needs.

LINK

I can't tell you how at peace I am at having nothing in the market at the moment.

[trapeze]

LINK

In a first, working-age people now make up the majority in U.S. households that rely on food stamps -- a switch from a few years ago, when children and the elderly were the main recipients.

Some of the change is due to demographics, such as the trend toward having fewer children. But a slow economic recovery with high unemployment, stagnant wages and an increasing gulf between low-wage and high-skill jobs also plays a big role. It suggests that government spending on the $80 billion-a-year food stamp program -- twice what it cost five years ago -- may not subside significantly anytime soon.

Food stamp participation since 1980 has grown the fastest among workers with some college training, a sign that the safety net has stretched further to cover America's former middle class, according to an analysis of government data for The Associated Press by economists at the University of Kentucky. Formally called Supplemental Nutrition Assistance, or SNAP, the program now covers 1 in 7 Americans.

Up is down. Black is white. Welcome to the new, pre-collapse America.

Economists say having a job may no longer be enough for self-sufficiency in today's economy.

"A low-wage job supplemented with food stamps is becoming more common for the working poor," said Timothy Smeeding, an economics professor at the University of Wisconsin-Madison who specializes in income inequality. "Many of the U.S. jobs now being created are low- or minimum-wage -- part-time or in areas such as retail or fast food -- which means food stamp use will stay high for some time, even after unemployment improves."

That which cannot stand will, eventually, fall.

But, hey...squirrel!

The U.S. military carried out a missile strike in southern Somalia on Sunday to target a senior figure in the Al Shabaab terrorist group who had ties to Al Qaeda, a senior defense official confirmed to Fox News.

But it was unclear if the morning raid, in which witnesses said a vehicle was struck, was successful.

"We'll know more tomorrow," the official, speaking on condition of anonymity, told Fox News.

The Associated Press, citing a member of Al Shabaab, reported that Sahal Iskudhuq, a member of the Somali rebel group, was killed in the strike, along with his driver.

LINK

You know, that Nobel Peace Prize for essentially being "not Bush" is looking more and more like genius, baby.

And, as a wrap up to tonight's Obama Depression Thread entry, here is a list of fun facts via Gateway Pundit:

$17.3 Trillion: The Current National Debt After Five Years Of State Of The Union Promises To Tackle The Problem. (U.S. Treasury Department, Accessed 1/24/14)

$6.6 Trillion: Added To The National Debt Despite Obama’s Declaration In His 2009 Address To Congress That He Didn’t Want To Leave “A Mountain Of Debt.” (U.S. Treasury Department, Accessed 1/24/14; President Barack Obama, Remarks by The President In State Of The Union Address , Washington, D.C., 1/27/10)

$4 Trillion: The Amount Of Debt That Obama Once Called “Irresponsible” And “Unpatriotic.” (Sen. Barack Obama, Remarks At A Campaign Event, Fargo, ND, 7/3/08)

$1.8 Trillion: Cost Of ObamaCare’s Coverage Provisions From 2014 To 2023. (CBO, 7/30/13)

$1 Trillion: The Total Student Debt Held By Americans. (Josh Mitchell, “Student-Loan Debt Slows Recovery,” The Wall Street Journal’s Real Time Economics, 12/30/13)

$819.3 Billion: Total Taxes In ObamaCare. (CBO, 3/12;JCT, 6/15/12; CBO, 5/14/13; CBO, 7/30/13)

$494 Billion: Amount Of Regulatory Burden Since Obama Took Office. (American Action Forum, 1/8/14)

$174 Billion: Federal Budget Deficit For The First Three Months Of FY2014. (U.S. Treasury Department, Accessed 1/17/14)

$32.6 Billion: The Increased Cost To Pay Interest On U.S. Debt Since 2009. (U.S. Treasury Department, Accessed 1/17/14)

47. 6 Million: Americans Receiving Food Stamps In 2013. (Department Of Agriculture, Accessed 1/24/14)

46.5 Million: Americans Living In Poverty – A Record Number – Despite Obama Calling Income Inequality “The Defining Issue Of Our Time” In His 2012 State Of the Union Address. (U.S. Census Bureau, Accessed 1/24/13)

19.4 Million: The Number Of Americans That Have Joined The Food Stamp Program Since Obama Took Office. (Department Of Agriculture, 1/24/14)

10.4 Million: The Number Of People Unemployed At The End Of Obama’s Fifth Year As President. (BLS, 1/24/14)

7.8 Million: The Number Of People Working Part-Time That Would Like To Work Full-Time. (BLS, 1/24/14)

6.7 Million: The Number Of People That Have Entered Poverty Since 2008. (U.S. Census Bureau, Accessed 1/24/14)

LINK

[Libertas]

Damn, I feel like Trap is channeling me!  But, when you're right you're right!

ALL of the real facts and trends are bad, and it is so bad that even the cooked data is trending negative.  I hear Lord High Obama is going to admit (this is the MFM's description, remember that!) that his economic polices are not working...but it appears he will blame Republicans anyway since nobody is tired of that schtick, and use that as more excuse to issue another string of unconstitutional edicts to remedy the situation.

All I got to say is "If Obama the Destroyer of All Things Good is going to remedy the situation, things are about to get much, much worse."!

And you know what?  There are people who deserve what is coming.  And there are people like us who hold them all in contempt.

No quarter to our enemies!  Remember that!  And prepare accordingly.

[trapeze]

ZeroHedge debunks Forbes story on stoppage of China cash transfers. They do say, though, that there are lots of reasons why China is in trouble...this just isn't one of them.

Not yet.

Earlier today, Forbes managed to spook readers with a bombastic report that China's commercial banks had been instructed by the PBOC to halt cash transfers - something which would have dire implications on China's banking system ahead of its new year holiday, and send the banking system into a tailspin just as China is desperate to avoid all turbulence ahead of a potential shadow banking default.

Leaving aside the fact that one should typically rely on official PBOC advisories, posted quite clearly on its website (where one finds no mention of this notice), one could simply keep track of interbank liquidity indicators such as repo and SHIBOR, both of which dropped, indicating that liquidity actually improved.

Anyway, here is what really happened, as reported by China Compass. "Forbes columnist Gordon Chang claimed in a much-quoted item today that the Peoples Bank of China had instructed commercial banks to halt cash transfers. Chang's column, entitled “China Halts Bank Transfers,” specifically refers to Citibank's Chinese branches. The report is entirely misleading." Our advice - focus on the real "weakest links" in China's banking system, of which there are many and are backed by facts, not the least of which is the potential upcoming shadow banking default. Ignore groundless rumors and speculation.

[warpmine]

Damn, I feel like Trap is channeling me!  But, when you're right you're right!

ALL of the real facts and trends are bad, and it is so bad that even the cooked data is trending negative.  I hear Lord High Obama is going to admit (this is the MFM's description, remember that!) that his economic polices are not working...but it appears he will blame Republicans anyway since nobody is tired of that schtick, and use that as more excuse to issue another string of unconstitutional edicts to remedy the situation.

All I got to say is "If Obama the Destroyer of All Things Good is going to remedy the situation, things are about to get much, much worse."!

And you know what?  There are people who deserve what is coming.  And there are people like us who hold them all in contempt.

No quarter to our enemies!  Remember that!  And prepare accordingly.

I was looking to 1/4 the enemy for adequate warning to the next bunch of treasonous pigs.
Impaling them on pikes displayed on the roads to DC will be good enough

[Weisshaupt]

Wondering who will take over the mantle of Treasury bond buyer now that the Fed is stepping away? Curious of the government's next steps towards repression and control of wealth? Wait no longer. As the AP reports, President Obama will unveil a new retirement savings plan tonight that allows first-time savers to buy US Treasury bonds tax-deferred for retirement.

Voluntary Participation of course. You know, till it isn't.

But what a deal! I will not take 15-35% of what is yours to pay for stuff I want, if you know, buy this treasury bond that lets me borrow for stuff I want, that I will pay for out of your future taxes, and which get negative returns after inflation!
Save for retirement in an instrument guaranteed to loose purchasing power in the first Year and every year thereafter! By the time you are 80, that money you invested will buy you a half eaten  McDonalds Cheeseburger and a used condom!

 

[Weisshaupt]

Rumors that Fed employees have already had IRA moved...

I think 2014 is the year to fully drain them IRAs if you haven't done so already.

For those of you balking at the early withdrawal tax I ask - which is better: $200K in US Treasures you are not allowed to withdraw or touch till you are 65 or 70,  or $110K now  that you can?

This and the Presidents special Sheep Shearing IRA he is unveiling are just tow more data point along this road that says yes, mandatory and sudden confiscation is coming.  That is $110K you can use for PV systems, generators,  Diesel Fuel distillers, Alcohol Stills, guns and ammo, dried food ,Tractors and Farming implements and farmland .. or amongst other things.  Or grab some gold and silver at discount prices!

We have seen a major ramp up in the Conservative  Purge this week, and  Matt Drudge is issuing cryptic warnings about needing an Exit plan. You got the GOP starting to push amnesty in what appears to be an attempt at final suicide for the party. And Of course Germany is getting back recast gold - they asked for only 5% of their holdings to be repatriated, and the US is doing at over multiple years and couldn't even come up with the full first shipment.. and that in gold that no longer bears the German Gold's seal...

Its starting to feel like Endgame to me..

I have been wrong before. We probably have two years,  but everything seems to be smacking of desperation now..

[Weisshaupt]

Oh and as a reminder Obama's 2014 Budget had in it a proposal for Automatic IRAs - that you would be signed up for automatically if you didn't opt out

Anyone what to bet that this is in that POS's speech tonight, and that he plans to do it by executive order...
Heck, he may just announce the dissolution of congress and implementation of Order 66. Or maybe he will save that for during the Super Bowl...

[Glock32]

Yeah. I want to tell my parents to get their 401(k) money out, but I don't know what to tell them to put it in. I am being only slightly facetious when I tell them "the 3 Bs: bullion, beans, and bullets".

Regarding this:

"Many of the U.S. jobs now being created are low- or minimum-wage -- part-time or in areas such as retail or fast food -- which means food stamp use will stay high for some time, even after unemployment improves."

Well gee, no mention of one of the prime motivators behind the part-time trend. Their precious ObamaCare has damn near mandated that small businesses hire part-timers. They can't afford the new expense of full-time employees. I get so sick of liberals always getting away with being able to act like innocent bystanders when their asinine policies produce these utterly predictable results.

[warpmine]

I'm waiting to issue order number 30 06 and 308

[Weisshaupt]

Obama Announces the GUARANTEED RETURN, NO RISK INVESTMENT!

First comment on Zero Hedge:

putaipan: and it's gone!

And it's gone (original)

NoDebt

And this is different from opening a regular old IRA and buying T-bonds inside it, how??  Oh yeah, they'll now make it a regular payroll deduction.  Taking out for Social Security taxes isn't enough of a "savings plan".  Now you can double-down on debt from the same government that also backs SS.  f**king brilliant.

You know what?  I don't give a crap any more.  Do whatever you want. 

Crawdaddy

A toast to your "i don't give a crap". Me too. Let it burn.

Crawdaddy

Yes sir. Cash out 401k and take tax hit plus 10% nut whack. Invest in something real. Inflation alone will recover the nut whack within 5 years.

GeezerGeek

It would be nice if this type of account could be tied to something real, like the unit price of a particular brand of peanut butter. Or a particular cut of beef.

[Libertas]

Yup.  Read all that too Weisshaupt.  And I definitely think the desperation factor is starting to set in, it could very well be Katy-bar-the-door time.

3-B's, get out of this market...I mean the warnings signs are fast and furious...I honestly don't know how much time there is between now and oblivion and there is likely to be a lot of whipsawing action and dirt in the air clouding things, but the end of this Kabuki could be reaching the finale!

[Weisshaupt]

More on the "And its gone" front..

There are no fees—100% of any contribution goes into the account and is invested in a Treasury security.  That means it will be backed by the full faith and credit of the United States, will earn the same interest rate that is available to federal employees for their retirement savings, and the balance will never go down.

Yes, that is right, we will make Taxpayers pay for the huge bureaucracy required for collecting contributions from millions of employers  and building the accounts!  (Okay really its just one guy depositing the money right into our secret bank account and we won't keep track of what you have in your account- because really there will be nothing there!)

Finally, myRA is not tied to any one employer—it belongs to the worker, not the workplace.  In other words, the account is portable and can be easily rolled into a Roth IRA.  And if myRA savers ever need to, they can withdraw their contributions tax-free, at any time

Seriously? Tax Free? Okay I put all of my income in.  Then I withdraw it same month - Tax free. Sounds like a frigging deal.

Oh no no.. its tax free but there are penalties for early withdrawal instead. You see, a penalty is different than a tax.. no wait, are they same? I keep forgetting.

[Libertas]

The MyRA isn't about anything but election year PR (look, something shiny here!) to cover the continuing war against the middle (cough! white!) class...the ONLY people who benefit is the FSA at the bottom (crumbs) and the crony-capitalists at the top (the 7 course dinner)!

   MyRA!  I got MyAR!!!

[Glock32]

This forum is so gifted at turning a phrase.

[Libertas]

Hey look, who says Obama hasn't accomplished jack shyt?!

http://www.zerohedge.com/news/2014-02-06/28-signs-middle-class-heading-towards-extinction

Forward, peasants!

Oh, and regarding that letter...sweetheart, the Destructor in Chief doesn't give a rats ass about you or anybody unless it has a direct benefit to he and his ilk.  You are fodder, a tool...you are meant to suffer and cry out so the progressives can exploit you take what little is left of our freedom away and control every aspect of human endeavor, every thought, every belief from birth to death.  Period.

The best thing you can do is join the freedom movement and look to yourself first, not others, to determine your destiny.

I read about an America that when duly aroused after being capriciously wronged where citizens took matters into their own hands and effected change, ran people out of town on rails...generally let it be known where the line in the sand was and backed up that claim with blood.

What we need is a good old fashioned revival of authentic Americanism!