Trump continually says he is going to kill the NAFTA agreement. It is time he does so. New home sales implode and the corporate media is now warning that the real estate market might not be as strong as originally thought. Service industry surges upward but manufacturing declines. The corporate media is now reporting that the economy is showing signs that it might enter a recession in the next 12 months. The old economy is dying and the new economy is gaining speed and the BRICS nations are behind it. The indictment for the Awans is missing something very important according to the former State Attorney. The corporate media is trying to push the idea that the incident with the USS McCain might have been caused by hacking. US has alot more troops in Afghanistan than is being reported. China and Russia denounce the sanctions. Poroshenko is preparing and is ready to take back Crimea and Donbass. Video surfaces showing US helping the IS escape from Syria. UN issues a warning to the US.
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Current News – 08.23.2017
- US President Donald Trump has warned he might scrap the North American Free Trade Agreement (NAFTA) with Mexico and Canada as the sides can’t compromise on the 23-year-old pact.“Personally, I don’t think we can make a deal. I think we’ll probably end up terminating NAFTA at some point,” Trump said at a political rally in Phoenix, Arizona
- He suggested a termination might help jump-start the negotiations, saying “I personally don’t think you can make a deal without a termination.”
- New Home Sales crashed in July (down a shocking 9.4% MoM compared to expectations of unchanged) following the collapse of household formations in June.
- The 8.9% year-over-year plunge in home sales is the worst since June 2014…
- As it appears higher mortgage rates, stagnant wages, and soaring prices have finally caught up to one another.
- As a reminder, household formation collapsed in June…
- Following this morning’s plunge in new home sales…
- It appears Institutional Risk Analyst’s Chris Whalen is spot on with his mortgage finance update: “Winter Is Here”…
- The big picture on housing reflected in the mainstream media is one of caution, home valuations are one of the clearest indicators of inflation in the US economy.
- In fact, since WWII home prices in the US have gone up four times the official inflation rate.
“Houses weren’t always this expensive,” notes CNBC. “In 1940, the median home value in the U.S. was just $2,938. In 1980, it was $47,200, and by 2000, it had risen to $119,600. Even adjusted for inflation, the median home price in 1940 would only have been $30,600 in 2000 dollars, according to data from the U.S. Census.”
- Two key indicators that especially worry us in the world of credit is the falling cost of defaults and the widening gap between asset pricing and cash flow.
- One of the interesting facts about the mortgage sector in 2017 is that even though average prices have more than recovered from the 2008 financial crisis, much of the housing stock away from the desirable periphery has not really bounced. This is yet another reason why existing home sales at a bit over a million properties annually have gone sideways for months. The 600,000 or so new housing starts is half of the peak levels in 2005, but today’s level may actually be sustainable.
- Looking at the MBA data, if you subtract the effects of mortgage servicing rights (MSR) from pre-tax income, most of the industry is operating at a significant loss.
- Source: MBA
- The US Manufacturing economy continues to languish near one-year lows (in line with the collapse in ‘hard data’ in recent months) but US Services are soaring to their highest level since April 2015.
- Manufacturing was ugly across the board…
Weaker increases in both output and new orders were key factors weighing on the headline manufacturing PMI in the latest survey period. Production volumes expanded at the slowest rate for 14 months in August, while new business growth weakened from July’s four-month high.
- Stock valuations are the discounted values of future earnings. Future earnings depend on future revenue, which may diminish whenever the future includes a recession. So, broad economic conditions are a big factor to watch in stock valuation.
- Broad economic conditions depend ultimately on the consumer’s ability and willingness to spend money. And July’s retail sales report gave us a peek at that.
- Consumer Spending Is Still Low Compared to Previous Recoveries
- Consumer spending, is far lower than it should be at this point in the cycle. Peter mentions debt as one factor.
- Over time, GVA tracks nominal GDP closely, but they can diverge in the short run. That is happening right now. Three of the last four quarters brought Real GDP growth—albeit not much—while RVA was negative. RVA below zero, as plotted below, is closely associated with the onset of recessions.
- This measurement technique is a little offbeat, but it is intriguing. Maybe this time is different, but we know from all kinds of other data that a recession should strike soon—by which I mean that one is quite possible in the next 12–18 months.
- BRICS, especially China, has played crucial role in reforming global economic governance toward building up new just economic world order free of domination, exclusiveness and exploitation. BRICS is the symbol of the New Economic Order based on sovereign equality, inclusiveness, shared benefits and responsibilities, win win cooperation. Establishment of the New (BRICS) Development Bank, of Asia Infrastructure Investment Bank, Belt and Road Fund and a number of other new specialized economic, financial and monetary institutions established by BRICS, or by China as a leading member has already changed the world economy governance.
- What make BRICS strong, trustworthy and with bright future are its openness, equality and distinctive efficiency. New (BRICS) Development Bank, for instance, brings its decisions on credit demands solely on economic merits, free of any political conditionality.
- Belt and Road Initiative China in fact presented new pattern of international cooperation based on long term common objectives, not on shortsighted calculations and temporary gains. All this made China worldwide distinct, highly desirable partner in both – practical cooperation and in building New World Order.
There is no press release about the indictment on the office’s website, though U.S. attorneys’ offices routinely issue press releases and make charging documents available in cases of far less national prominence.We must also ask, again: Why did the FBI allow Alvi to flee? Before she boarded her March 5 flight to Qatar (en route to Pakistan), agents briefly detained her.
By the time Alvi fled, the Awans had been under investigation by various federal agencies for at least three months.
- Andrew McCarthy III, the former assistant U.S. attorney for the Southern District of New York , says there is “something very strange” about the recent indictment filed against Imran Awan and his wife Hina Alvi in the District of Columbia.
- In a National Review article, McCarthy points out that it’s not what’s in the indictment that is necessarily surprising but rather what is seemingly intentionally omitted. For instance, McCarthy points out that “the indictment appears to go out of its way not to mention” that Imran was apprehended while in the process of fleeing the country, a fact that would seem to be the best evidence available to prove the fraud charges.
- Let’s say you’re a prosecutor in Washington. You are investigating a husband and wife, naturalized Americans, who you believe have scammed a federal credit union out of nearly $300,000. You catch them in several false statements about their qualifications for a credit line and their intended use of the money. The strongest part of your case, though, involves the schemers’ transferring the loot to their native Pakistan.
- So . . . what’s the best evidence you could possibly have, the slam-dunk proof that their goal was to steal the money and never look back? That’s easy: One after the other, the wife and husband pulled up stakes and tried to high-tail it to Pakistan after they’d wired the funds there — the wife successfully fleeing, the husband nabbed as he was about to board his flight.
- There’s not a word in it about flight to Pakistan. The indictment undertakes to describe in detail four counts of bank-fraud conspiracy, false statements on credit applications, and unlawful monetary transactions, yet leaves out the most damning evidence of guilt.
- In fact, the indictment appears to go out of its way not to mention it.
- Why did the U.S. Attorney’s office decide against filing a press release in a case that has garnered significant national attention? Why was the case filed in a district where DWS’s brother has been an assistant U.S. attorney for many years?
- Tragedy struck the USS John S. McCain on Monday, when the destroyer collided with a merchant ship off the coast of Singapore, leaving 10 sailors missing and five injured.
- Among the possible causes that are being looked into, one has a raised a few eyebrows. Over the summer there have been two accidental collisions involving the 7th fleet, and a total of 4 similar incidents this year. This has led some Navy officials to suspect that a cyber attack may have been responsible for the crash, as well as other recent Naval accidents.
“But we’re looking at every possibility, so we’re not leaving anything to chance,” he said.
Asked if that includes the possibility the electronic defenses on the guided missile destroyer USS John S. McCain were hacked in a cyber attack, Richardson said investigators will look into all possible causes.
“We’ll take a look at all of that, as we did with the Fitzgerald,” the four-star admiral said, referring to another Navy warship collision with a merchant ship in June near Japan.
- There’s no proof that China has been hacking our ships, but the possibility can’t be ruled out.
- The Department of Defense has thousands more American troops on the ground in Afghanistan than it has publicly disclosed, according to defense officials.
- The Pentagon says there are approximately 8,400 soldiers deployed in the country, but the total is actually more than 12,000,
- Some 3,500 troops in Afghanistan are there on temporary assignment or another status; the Department of Defense for many years has only cited those assigned to Afghanistan on a longer term basis.
- Additional troops, including special forces and other specialized units, are in Afghanistan, bringing the total over 12,000, but the Pentagon keeps those numbers secret for security reasons.
- China has made a statement condemning America’s most recent sanctions targeting individuals and entities in China and Russia alleged to be conducting business with North Korean entities.
“China opposes the imposition of unilateral sanctions outside the framework of the UN Security Council, especially the ‘long-arm jurisdiction’ imposed on Chinese entities or individuals by other countries in accordance with their domestic laws. Our position is clear and consistent”.
- Earlier today Russian Deputy Foreign Minister Sergey Ryabkov condemned the new sanctions saying,
- “They cannot be adopted endlessly because the aim of the sanctions should be reaching a certain result – in this case, Pyongyang changing its behaviour in missile and nuclear sectors”.
- Ukraine is launching a rearmament program of its Armed Forces, Ukrainian President Petro Poroshenko announced Wednesday.At a televised opening of a defense exhibition in central Kiev, Poroshenko stated:
We are now starting the armed technical modernization program of the army, we must bring our weapons to the level of the 21st century.
- He called on scientists, designers and defense company chiefs to develop new missiles, artillery systems, smart bombs, attack drones, and other types of weapons.Poroshenko also promised during the event that the Ukrainian flag would again fly over Crimea and Donbass.
- Up to 41 people have been killed, including 30 civilians, and scores injured after a small hotel near a Houthi rebel checkpoint collapsed Wednesday following an overnight Saudi-led aerial bombardment, reports the AP, citing Yemeni officials.
- The coalition carried out multiple airstrikes in Yemen overnight killing both Shiite Houthi rebels and civilians, according to unnamed Yemeni officials, cited by the AP.
- Despite widespread condemnation from both the UN and the Red Cross, the Saudi-led aerial bombardment and naval blockade has created a three-pronged humanitarian disaster in the country, pushing 17 million people to the brink of starvation, generating the world’s fastest-growing cholera epidemic and displacing hundreds of thousands of people.
- Video Emerges Of US Allowing ISIS Fighters To Escape Safely in Syria
- Video footage obtained by Al-Masdar appears to show convoys of ISIS fighters fleeing the Syrian city of Raqqa untouched by the U.S. military, which is currently bombing that exact location. As Al-Masdar notes, despite having Kurdish and American drones hovering around the city of Raqqa, U.S. bombs are nowhere to be seen as hundreds of fighters pass safely. The release of this footage comes on the heels of accusations from both Russia and Iran that the U.S. is colluding with ISIS to allow the group’s safe passage into areas controlled by the Syrian government.
- Further, the Syrian government’s outpost in Deir ez-Zor is isolated, hence why these two offensives are running in tandem. They both rely on the liberation of the other to have any real value to the Syrian government and its Russian and Iranian allies.
- A United Nations Committee tasked with combating racism on a global scale has issued an ultra rare “early warning” for the United States citing “alarming racism” trends.
- this rare signal often preludes the potential for civil conflict.
- In the past 10-years, the early warning has been issued in Burundi, Iraq, Ivory Coast, Kyrgyzstan and Nigeria.
- The United Nations Committee on the Eliminations of Racial Discrimination has called on high-level politicians and public officials of the United States to condemn “racist hate speech and crimes in Charlottesville and through the country”.
- Anastasia Crickley, Chairperson of UN Committee on the Elimination of Racial Discrimination (CERD) said:
- It’s clear that the United States is being purposely divided. The United Nations is clearly playing into the hype of issuing an early warning that has only been issued for third world countries in the past 10-years. In our opinion, the continued division in America will only be achieved through more events such as Charlottesville that will polarize the sheep into the streets for slaughtering.
- Finally we note that The United Nations dropped this little beauty in their progonstication…
CERD also called on the Government to ensure that the rights to freedom of expression, association and peaceful assembly are not exercised with the aim of destroying or denying the rights and freedoms of others, and also asked it to provide the necessary guarantees so that such rights are not misused to promote racist hate speech and racist crimes.