US Economy Collapses - Monstrous Negative Growth Rate Seals Demise of Dollar

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For months the administration, financial pundits and Wall Street analysts made it a point to inform Americans about the healthy state of our economy. One of the key metrics they’ve used as proof of recovery was the Gross Domestic Product (GDP) which measures the productive output of the U.S. economy as a whole.
Earlier this year the U.S. Bureau of Economic Analysis noted that this measure was showing positive growth. But now, after a second official revision, all of that purported growth used to goad consumers into spending more money on homes, cars and other goods has been revealed to be nothing but conjecture. According to the BEA, not only did economic growth stall during the first quarter of 2014, it completely collapsed, signalling a significant shift in consumption habits amid increasing food and energy prices:

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 2.9 percent in the first quarter of 2014 according to the “third” estimate released by the Bureau of Economic Analysis.

The government first made consumers believe that the economy grew. Then they revised this down to slight negative growth. The latest revision of -2.9% growth is significant, because even with official inflation at over 2% America’s economic output has declined. It seems that no matter how much money they pump into the system, it isn’t enough to offset the lack of income or job growth.

This is a monstrous negative revision.
A big part of it was non-residential fixed investment. Rather than invest, companies have issued debt and bought back stock. But this does nothing for the economy — it simply blows a bubble in the market. How long before that comes home to roost? Not long now, I suspect.
If you think companies don’t expect a recession inbound, you’re nuts. Inventory draw-downs subtracted 1.7% from the GDP number. Companies don’t build inventories if they don’t think they can sell them — as such this is a forward indicator.
Oh, and current production profits? They’re down while current taxes were up. Obamacare anyone? Worse is that undistributed profits decreased too and this is the second quarter sequentially in which they did. What does a company pay dividends with? Undistributed profits.
So for two quarter the markets has risen like a rocket while the fuel for that rise has been exhausted for the last six months.
This will turn out well, I’m sure.
Source: Karl Denninger’s Market Ticker

Officially, we have not yet entered a recession. That requires two quarters of negative growth. However, the current trend indicates that’s exactly what’s going to happen. In the next 30 days the BEA should be releasing the GDP rate for the second quarter of 2014. According to economist John Williams that will more than likely show a negative print and will lead to an official confirmation that the U.S. has entered another recession.
What’s worse, unlike the previous recession that followed the collapse of 2008, there is no way out of this one.

The reason for this is that the consumer is strapped… doesn’t have the liquidity to fuel the growth in consumption.
Income… the median household income, net of inflation, is as low as it was in 1967. The average guy is not staying ahead of inflation.
…
As a result – personal consumption is more than two thirds of the economy – there’s no way you can have positive sustainable growth in the U.S. economy without the consumer being healthy.
…
As the renewed downturn gains wider acceptance or wider recognition, that will intensify the selling pressure. When someone starts selling, it’s going to be a race for the door, and I am looking for a dollar selling panic to be the trigger for the onset of hyperinflation.
…
I don’t see what will save it at this point.

To cries of fear mongering and ‘doom porn’ contrarian economists and analysts warned that these numbers were being fabricated, despite the fact the the underlying fundamentals showed a clear draw-down in consumer confidence, company inventory, home sales and overall spending.
Now all of those warnings are coming to pass.
We have entered the next leg down and given that the governments of the world have pretty much used up all of the arrows in their quivers, there is nothing to stop what’s coming.
And what’s coming is nothing short of a complete collapse of our way of life. Hard to believe? Yes. Implausible? No.
It is so plausible, in fact, that well known radio commentator Mark Levin recently noted that the U.S. government has been actively preparing for and simulating the collapse of our financial system, as well as the widespread violence that will follow.

I’ll tell you what I think they’re simulating.
The collapse of our financial system, the collapse of our society and the potential for widespread violence, looting, killing in the streets, because that’s what happens when an economy collapses.
I’m not talking about a recession. I’m talking about a collapse, when people are desperate, when they can’t get food or clothing, when they have no way of going from place to place, when they can’t protect themselves.
There aren’t enough police officers on the face of the earth to adequately handle a situation like that.

This is happening right here and now. The streets may not devolve into madness tomorrow or next month, but piece by piece the foundations of America’s economic health and social structure are crumbling. The time to finalize preparations for what’s coming is now.
It’s going to go from bad to worse.

(InfoWars.com)

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Putin orders 80,000 Troops to "Deploy Immediately" after Obama orders US Nukes to Europe

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A truly apocalyptic report issued hours ago by the Ministry of Defense (MoD) today says that President Putin has ordered over 80,000 troops to “deploy immediately” to their forward operating “stations” on the Ukrainian border and the “immediate” cut-off of all natural gas supplies to Ukraine after he received confirmation that President Obama has placed US atomic weapons and their “delivery systems” in Europe.

According to this report, Russian military intelligence officials received confirmation yesterday from their counterparts at the Foreign Intelligence Service of the Czech Republic (UZSI) that the two B-2 Stealth Bombers (Call signed Death11 and Death12) ordered to the UK by Obama last week, along with the three B-52 Stratofortress bombers currently deployed at RAF Fairford in Gloucestershire, have all been equipped with subsonic AGM-86 air-launched cruise missiles (ALCM) equipped with W80 nuclear warheads.

Further to be noted, this report says, is that the Slovakian Intelligence and Security Agency (SOVA) further confirmed to their MoD counterparts that an exercise of this formidable nuclear first-strike force in attacking Russia was “directly responsible” for the disappearance of civilian aircraft from air-traffic control radars in Austria, Germany, the Czech Republic and Slovakia last week endangering the lives of thousands.

Important to note, this report says, are that NATO troops and bases not welcome in the Slovakia and Czech Republics as the Obama regime and its allies continue to push for total war with Russia.

As evidence of the fact of the West preparing for total war against Russia, this report continues, NATO Secretary-General Anders Fogh Rasmussen said in an interview published yesterday that it is preparing measures to help Ukraine defend itself in its stand-off with Russia, and must adapt to the fact that Moscow now views it as an adversary. And Germany’s highly influential Heinrich Böll Foundation further stated “This is a war, and Russia is involved”.

Another provocative war action by Obama regime forces against Russia, this report says, was this past weeks highly destructive attack on the Russian Embassy in Kiev which the Ukrainian police not only failed to stop in clear violation of the 1961 Vienna Conventions on Consular Relations, and shockingly had as one of its participants (an incident that may be a first in world diplomatic history) Kiev’s top diplomat, Foreign Minister Andrey Deshchitsa, chanted “Putin’s a f**ker” to the cheering neo Nazi mob.

To the most shameful outcome of the vicious attack on Russia’s Embassy in Kiev, this report notes, was not only the Obama regime refusing to condemn it, but it’s forcing of its Western allies to block a UN Security Council resolution condemning it too.

Foreign Minister Sergei Lavrov also warned the international community that they should pay special attention to the task of curbing radicals and neo-Nazis in Ukraine by stating, “In the wake of the latest events including the disgusting attack on the Russian embassy, a special attention of the international community and of those who have direct influence on the Kiev authorities is needed for curbing radicals, extremists and neo-Nazis”.

To the atrocities and war crimes that the Obama regime backed Ukraine government has committed against its own peoples that have caused over 122,000 of its own citizens to flee to Russia for protection, this report says, it should be noted they will not escape punishment. And as exampled by Investigative Committee head Sergei Bastrykin who this past week warned that those who are guilty of committing military crimes in eastern Ukraine will be punished, “even if they hide at the bottom of the ocean”.

As even Pope Francis this week warned that the global economy is near collapse, and as the American elites responsible for it are on trial in the court of public opinion, and the verdict is just about to come in (as evidenced by the stunning election defeat of one of their top war leaders, Eric Cantor, last week), this report grimly states, the Obama regimes “main propaganda mouthpiece”, the New York Times, published an editorial last week stunningly saying that “Lack Of Major Wars May Be Hurting Economic Growth”.

And as the Obama regime and is bankster allies continues their push for a nuclear war against Russia, this report concludes, it should not be forgotten that what the US is doing now it has done many, many times before, including in 1917, when after almost two years of heavy anti-German propaganda in the US press that built an overwhelming public support for our joining that war against Germany, Congress found that, in March 1915, “J.P. Morgan interests had bought 25 of America's leading newspapers, and inserted their own editors, in order to control the media” so that American would join the war on England's side.

Whereas back then, it was Germany's leader who was being goaded into providing a pretext for us to declare war against his country, the OpEd News Service says, this time it's Russia's leader (Putin) who is being demonized and goaded into providing such a pretext, though Putin (unlike Germany's Kaiser) has thus far refrained from providing the pretext that Obama constantly warns us that he will (a Russian invasion of Ukraine).

Consequently, Obama's people are stepping up the pressure upon Putin by bombing the areas of neighboring Ukraine where Russian speakers live, who have family across the border inside Russia itself. Just a few more weeks of this, and Putin's public support inside Russia could palpably erode if Putin simply lets the slaughter proceed without his sending troops in to defend them and to fight back against Kiev's (Washington's surrogate's) bombing-campaign. This would provide the pretext that Obama has been warning about.

All that remains unknown now, and before the nuclear bombs start falling, is if the American people will awaken and stop the madness of their crazed war leaders before it’s too late for everyone.

(WhatDoesItMean.com)

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Russian Nuclear Bombers Fly within 50 miles off California Coast

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Russian Tu-95 Bear H Strategic Bombers

Four Russian strategic bombers triggered U.S. air defense systems while conducting practice bombing runs near Alaska this week, with two of the Tu-95 Bear H aircraft coming within 50 miles of the California coast, the North American Aerospace Defense Command (Norad) confirmed Wednesday.

“The last time we saw anything similar was two years ago on the Fourth of July,” Navy Capt. Jeff Davis, a Norad spokesman, told the Free Beacon.

Davis said the latest Bear H incursions began Monday around 4:30 p.m. Pacific time when radar detected the four turbo-prop powered bombers approaching the U.S. air defense zone near the far western Aleutian Islands.

Two U.S. Air Force F-22 jets were scrambled and intercepted the bombers over the Aleutians.

After tracking the bombers as they flew eastward, two of the four Bears turned around and headed west toward the Russian Far East. The bombers are believed to be based at the Russian strategic base near Anadyr, Russia.

The remaining two nuclear-capable bombers then flew southeast and around 9:30 P.M. entered the U.S. northern air defense zone off the coast of Northern California.

Two U.S. F-15 jets were deployed and intercepted the bombers as they eventually flew within 50 miles of the coast before turning around and heading west.

A defense official said the four bombers also were supported by two IL-78 aerial refueling tankers that were used for mid-air refueling during the operation this week.

The Tu-95 is a long-range strike aircraft capable of carrying nuclear cruise missiles. Other versions are equipped with intelligence-gathering sensors and electronic warfare gear. It has a range of around 9,400 miles without refueling.

Davis said the aircraft “acted professionally” and the bombers appeared to be conducting a training mission.

“They typically do long range aviation training in the summer and it is not unusual for them to be more active during this time,” he said. “We assess this was part of training. And they did not enter territorial airspace.”

The bomber incursion is the latest Russian nuclear saber-rattling amid stepped up tensions over Moscow’s military annexation of Ukraine’s Crimea.

Rep. Mike Conaway (R., Texas), a member of the House Armed Services Committee, called the Russian flights “intentional provocations.”

“Putin is doing this specifically to try to taunt the U.S. and exercise, at least in the reported world, some sort of saber-rattling, muscle-flexing kind of nonsense,” Conaway said in an interview. “Truth of the matter is we would have squashed either one of those [bombers] like baby seals.”

“It’s a provocation and it’s unnecessary. But it fits in with [Putin’s] macho kind of saber-rattling,” he said, adding that he expects Russia will carry out more of these kinds of incidents in the future.

Retired Air Force Lt. Gen. Thomas McInerney, a former Alaska commander for the North American Aerospace Defense Command, said he does not remember a case of Russian strategic bombers coming that close to the U.S. coast.

“Again we see the Obama administration through their covert—but overt to Mr. Putin—unilateral disarmament, inviting adventurism by the Russians,” McInerney said in an email.

“At the height of the Cold War I do not remember them getting this close. Mr. Putin had to approve this mission and he is just showing his personal contempt for President Obama right after meeting him in Normandy less than a week ago,” McInerney said. McInerney said no American president has been treated with such disrespect in U.S. history.

“A sad day indeed and at the same time Mosul and Tikrit [Iraq] fall to radical Islamists after the Obama administration’s failed Iraq policy,” he added. “He snatched defeat from the jaws of victory yet again.”

The Alaska-California bombers flight also came a month after a Russian Su-27 interceptor jet flew dangerously close to a U.S. RC-135 reconnaissance aircraft flying over the Sea of Okhotsk, north of Japan.

In that incident on April 23, the Su-27 jet flew close to the RC-135, turned to reveal its air-to-air missiles to the crew, and then flew dangerously close to within 100 feet of the cockpit in a maneuver military officials called reckless.

Davis said in the past 10 years, 50 Bear H bombers were intercepted near U.S. air defense zone, although he acknowledged that Monday’s flight near California was unusual.

In April, a telephone conversation between two Russian ambassadors was posted on YouTube and appeared to show the diplomats joking about the Ukraine crisis and discussing the possible incursions in the United States and Eastern Europe.

The leaked conversation between Igor Nilokaevich Chubarov and Sergey Viktorovich Bakharev, Russian ambassadors to the African nations Eritrea and Zimbabwe and Malawi, respectively, includes references to post-Crimea Russian imperialism to include Eastern Europe and “Californialand” and “Miamiland.”

Russian Bear H flights elsewhere have increased in recent years. In February 2013, two of the bombers were intercepted as they circled the U.S. Pacific island of Guam, in a rare long-range incursion. Two Bear Hs also were intercepted near Alaska on April 28, 2013.

A Russian Bear H incursion in Asia took place in in July 2013 when two Tu-95s were intercepted by Japanese and South Korean jets near the Korean peninsula and Japan’s northern Hokkaido Island.

The July 4, 2012, bomber flights near the West Coast were the first time since the Cold War that Russian jets has traveled so close to the U.S. coastline.

That action followed an earlier intrusion by Tu-95s near Alaska that were part of large-scale strategic nuclear exercises by the Russians aimed at practicing strikes on enemy air defenses.

Russia has stepped up provocative nuclear war games in recent years as part of propaganda efforts to display Moscow’s dislike of U.S. missile defenses in Europe.

(FreeBeacon.com)

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