Spanish Mask Protests And Violent Police Clampdown Hard To Find Online...,

VOA  |  A movement that denies the existence of COVID-19 has split Spanish society as the country is battling to control the highest number of coronavirus cases in Europe.

Stop Confinamiento España, one of the groups behind the movement, has said it will hold a protest next month in Madrid, calling it a “peaceful demonstration against the measures imposed in connection with the false health crisis caused by COVID-19.”

The strength of feeling among those who claim coronavirus is an invention by a ruling elite to control the masses was demonstrated when an estimated 2,500 people staged a protest in Madrid on Sunday. 

The movement has gained ground thanks in part to the support of high profile celebrity supporters like Miguel Bosé, a popular Spanish singer.

Bosé has used his social media platforms in recent weeks to promote what some describe as conspiracy theories about COVID-19, and he claimed a planned vaccine was a pretext to control the world’s population using 5G mobile phone technology.

Sunday’s demonstration echoed those in June staged in cities across Spain by mainly right wing groups that were protesting restrictions imposed on personal freedoms by the left wing coalition government in order to curtail a rising number of coronavirus cases. 

Spain last week announced a nationwide ban on smoking and drinking in public if social distancing cannot be guaranteed.

The COVID-19 denial movement in Spain echoes similar libertarian movements that have sprung up in the U.S., France, Britain and Germany.

The controversial cause has divided Spaniards, with recent polls showing a quarter of the population objects to the obligatory use of face masks across the country.

Is 2020 The Year Shit Starts Getting Real For You Other 9%'s Here Too?

I find it hard to listen to establishment fake news front Amy Goodman and crew. However, this is recent Arundhati Roy, and thus, I'm making an exception. The real shizzles and bizzles - where Roy breaks it down even for the slow cats who don't pay close attention - can be found here.  Since I don't expect you to pay $5.00 for this lecture, I surely wouldn't, here's a temporary link that should enable you to listen to it for free for the next couple of weeks. Click on the January 1st 2020 9:00am radio broadcast when it goes live at this location in a few minutes. 

Oh, lastly, you're welcome for the KKFI hookup. Of special note (you need to check out these shows) are The Boogie Bridge, Old-G's Hangout, and Lynn's Beautician's Blues. You will thoroughly enjoy each one of these. Yesterday's Beautician's Blues was straight FYRE!!! Don't say I never did you any favors.

Capital Consolidation and Tax "Reform"...,

therealnews |  Welcome to The Real News Network. I'm Gregory Wilpert coming to you from Quito, Ecuador. The year 2017 is turning out to be another banner year for the centralization of capital, that is, according to an article in the Financial Times this week, “Global mergers and acquisitions exceeds three trillion dollars for the fourth straight year.” The article goes on to point out the following: Faced with the prospect of Amazon's entry into the pharmacy business, the US's biggest drugstore chain, CVS Health, agreed to acquire health insurer, Aetna for about $69 billion. Encroachment by Facebook and Netflix into sports, media and film production led Rupert Murdoch to sell most of his 21st Century Fox empire to Disney in a $66 billion deal.

The US remained the most active region for mergers and acquisitions with $1.4 trillion in deals. The numbers of US deals struck in 2017 combined climbed above 12,400 for a record figure. The largest deal in 2017 has yet to be resolved as Broadcom pursues a hostile $130 billion bid for rival chip maker, Qualcomm. Joining me to analyze the causes and consequences of this massive centralization of capital in 2017 is Michael Hudson. Michael is a distinguished Research Professor of Economics at the University of Missouri–Kansas City. He's author of several books. The most recent among them is J is for Junk Economics. Welcome back, Michael.

MICHAEL HUDSON: Good to be back here.

GREGORY WILPERT: So, what at heart is causing all of this frenetic activity for companies to gobble up one another and thereby creating and ever greater centralization of capital?

MICHAEL HUDSON: Well, it's part of the neoliberal strategy to inflate the wealth of the 1%, basically by inflating the stock market and the real estate and the bond prices. At the same time, the central banks are pursuing quantitative easing that offer money at almost zero interest rates. You have the tax system, tax giveaways, to the... sector, which are encouraging these mergers and acquisitions by, essentially, dismantling the antitrust legislation that has been in place since the New Deal, and the tax giveaways that make it possible for all of this huge, hundreds of billions of dollar tax giveaways in the Republican tax law of two weeks ago that enables companies that have kept hundreds of billions of their earnings tax-free in offshore banking enclaves and tax avoidance centers.

Since 2004, all this money can now be replaced under the name of the head companies instead of their just-pretend foreign affiliates in these tax avoidance centers. So, the companies are going to be very tax rich. They've anticipated most of this and essentially, you can look at these mergers and acquisitions as part of an arbitrage operation. If you can get money at about 1%, if you're a hedge fund, a bank or a large corporation, if you can borrow at 1%, then you can borrow stocks that are yielding 10% or even more. Or, for that matter, even less and you can make up all the difference between the 1% you pay and the stocks whose dividends pay a higher rate of return, 5, 6, 7, 8, or 9%.

Intersectional Allies Absotively Cannot Hold Up Their End In The Coming Civil War...,

ourfiniteworld |  Most of us are familiar with the Politically Correct (PC) World View. William Deresiewicz describes the view, which he calls the “religion of success,” as follows:

There is a right way to think and a right way to talk, and also a right set of things to think and talk about. Secularism is taken for granted. Environmentalism is a sacred cause. Issues of identity—principally the holy trinity of race, gender, and sexuality—occupy the center of concern.

There are other beliefs that go with this religion of success:

• Wind and solar will save us.
• Electric cars will make transportation possible indefinitely.
• Our world leaders are all powerful.
• Science has all of the answers.

To me, this story is pretty much equivalent to the article, “Earth Is Flat and Infinite, According to Paid Experts,” by Chris Hume in Funny Times. While the story is popular, it is just plain silly.

In this post, I explain why many popular understandings are just plain wrong. I cover several controversial topics, including environmentalism, peer-reviewed literature, and climate change models. This post pretty much excludes religion. It was added for people who find it hard to believe that a scientific article could also touch upon religion. If you want the complete discussion, as the post was originally written, please see this post. 

Myth 1: If there is a problem with the lack of any resource, including oil, it will manifest itself with high prices.

As we reach limits of oil or any finite resource, the problem we encounter is an allocation problem. 

As long as the quantity of resources we can extract from the ground keeps rising faster than population, there is no problem with limits. The tiny wedge that each person might get from these growing resources represents more of that resource, on average. Citizens can reasonably expect that future pension promises will be paid from the growing resources. They can also expect that, in the future, the shares of stock and the bonds that they own can be redeemed for actual goods and services.

If the quantity of resources starts to shrink, the problem we have is almost a “musical chairs” type of problem.

In each round of a musical chairs game, one chair is removed from the circle. The players in the game must walk around the outside of the circle. When the music stops, all of the players scramble for the remaining chairs. Someone gets left out.

The players in today’s economic system include

• High paid (or elite) workers
• Low paid (or non-elite) workers
• Businesses
• Governments
• Owners of assets (such as stocks, bonds, land, buildings) who want to sell them and exchange them for today’s goods and services

If there is a shortage of a resource, the standard belief is that prices will rise and either more of the resource will be found, or substitution will take place. Substitution only works in some cases: it is hard to think of a substitute for fresh water. It is often possible to substitute one energy product for another. Overall, however, there is no substitute for energy. If we want to heat a substance to produce a chemical reaction, we need energy. If we want to move an object from place to place, we need energy. If we want to desalinate water to produce more fresh water, this also takes energy.

The world economy is a self-organized networked system. The networked system includes businesses, governments, and workers, plus many types of energy, including human energy. Workers play a double role because they are also consumers. The way goods and services are allocated is determined by “market forces.” In fact, the way these market forces act is determined by the laws of physics. These market forces determine which of the players will get squeezed out if there is not enough to go around.

Non-elite workers play a pivotal role in this system because their number is so large. These people are the chief customers for goods, such as homes, food, clothing, and transportation services. They also play a major role in paying taxes, and in receiving government services.

History says that if there are not enough resources to go around, we can expect increasing wage and wealth disparity. This happens because increased use of technology and more specialization are workarounds for many kinds of problems. As an economy increasingly relies on technology, the owners and managers of the technology start receiving higher wages, leaving less for the workers without special skills. The owners and managers also tend to receive income from other sources, such as interest, dividends, capital gains, and rents.

Vikram Pandit Says 1.8 Million Bank Employees Gotta Go Gotta Go Gotta Go...,

bloomberg |  Vikram Pandit, who ran Citigroup Inc. during the financial crisis, said developments in technology could see some 30 percent of banking jobs disappearing in the next five years.

Artificial intelligence and robotics reduce the need for staff in roles such as back-office functions, Pandit, 60, said Wednesday in an interview with Bloomberg Television’s Haslinda Amin in Singapore. He’s now chief executive officer of Orogen Group, an investment firm that he co-founded last year.

“Everything that happens with artificial intelligence, robotics and natural language -- all of that is going to make processes easier,” said Pandit, who was Citigroup’s chief executive officer from 2007 to 2012. “It’s going to change the back office.”

Wall Street’s biggest firms are using technologies including machine learning and cloud computing to automate their operations, forcing many employees to adapt or find new positions. Bank of America Corp.’s Chief Operating Officer Tom Montag said in June the firm will keep cutting costs by finding more ways technology can replace people.

While Pandit’s forecast for job losses is in step with one made by Citigroup last year, his timeline is more aggressive. In a March 2016 report, the lender estimated a 30 percent reduction between 2015 and 2025, mainly due to automation in retail banking. That would see full-time jobs drop by 770,000 in the U.S. and by about 1 million in Europe, Citigroup said.

Retail Apocalypse 2017

Visual Capitalist

Brick-and-Mortar Stores Are Shuttering at a Record Pace

cnn |  Stores are closing at an epic pace. In fact, the retail industry could suffer far more store closures this year than ever. 

Brokerage firm Credit Suisse said in a research report released earlier this month that it's possible more than 8,600 brick-and-mortar stores will close their doors in 2017. 

For comparison, the report says 2,056 stores closed down in 2016 and 5,077 were shuttered in 2015. The worst year on record is 2008, when 6,163 stores shut down. 

"Barely a quarter into 2017, year-to-date retail store closings have already surpassed those of 2008," the report says. 

If stores do close at the rate Credit Suisse is projecting, it could mean America will lose more than 147 million square feet of retail space this year. 

Related: Ghostly images of a dead mall tell an American story

 

Physical store fronts have been eclipsed by ecommerce masters like Amazon. The toll it's taken can be seen in emptying malls and shopping centers across the country. 

Among the casualties announced so far this year: Bebe said it's closing all of its retails spaces, JCPenney (JCP) announced plans to shutter 138 stores by July, Payless ShoeSource is closing hundreds of stores, and Macy's (M) said it's shutting down 68 locations. 

And onetime retail powerhouse Sears -- which also owns Kmart -- said in March that the company has "substantial doubt" that it can survive.

Visualizing the Collapse of the American Middle Class

visualcapitalist |  The fact is many people have less money in their pockets – and understandably, this has motivated people to take action against the status quo.

And while the collapse of the middle class and income inequality are issues that receive a fair share of discussion, we thought that this particular animation from Metrocosm helped to put things in perspective. 

The following animation shows the change in income distribution in 20 major U.S. cities between 1970 and 2015:

The differences between 1970 and 2015 are intense. At first, each distribution is more bell-shaped, with the majority of people in a middle income bracket – and by 2015, those people are “pushed” out towards the extremes as they either get richer or poorer.

A Broader Look at Income Inequality

This phenomenon is not limited to major cities, either. 

Here’s another look at the change in income distribution using smaller brackets and the whole U.S. adult population:

Courtesy of: FT (h/t Metrocosm)

It’s a multi-faceted challenge, because while a significant portion of middle class households are being shifted into lower income territory, there are also many households that are doing the opposite. According to Pew Research, the percentage of households in the upper income bracket has grown from 14% to 21% between 1971 and 2015.

The end result? With people being pushed to both ends of the spectrum, the middle class has decreased considerably in size. In 1971, the middle class made up 61% of the adult population, and by 2014 it accounted for less than 50%. 

As this “core” of society shrinks, it aggravates the aforementioned problems. People and governments borrow more money to make up for a lack of middle class wealth, while backlashes against globalism, free trade, and open borders are fueled

.45's Proposed Federal Contraction

chicagotribune |  The federal government is projected to spend $4.091 trillion next year, with roughly two-thirds of that going mostly toward Social Security, Medicare, Medicaid, poverty assistance and interest payments on the government debt. This spending is expected to be left untouched in the budget proposal next week.

What Trump will propose changing is the rest of the budget, known as discretionary spending, which is authorized each year by Congress. Slightly more than half of this remaining money goes to the military, and the rest is spread across agencies that operate things like education, diplomacy, housing, transportation and law enforcement.

Among Trump's expected proposals are an increase in military spending of $54 billion, more money to start building a wall along the border between the United States and Mexico, and the creation of new initiatives that expand access to charter schools and other educational programs.

To offset that new money, Trump will propose steep cuts across numerous other agencies. Although final numbers remain in flux, his advisers have considered cutting the Department of Housing and Urban Development's budget by $6 billion, or 14 percent, according to a preliminary budget document obtained by The Washington Post. That is a change that Trulia chief economist Ralph McLaughlin said could "put nearly 8 million Americans in both inner-city and suburban communities at risk of losing their public housing and nearly 4 million at risk of losing their rental subsidy."

Preliminary budget documents have also shown that Trump advisers have also looked at cutting the Environmental Protect Agency's staff by about 20 percent and tightening the Commerce Department's budget by about 18 percent, which would impact climate change research and weather satellite programs, among other things.

Trump and his advisers have said that they believe the federal workforce is too big, and that the federal government spends - and wastes - too much money. They have said that Washington - the federal workers and contractors, among others - has benefited from government largesse while many other Americans have suffered. Federal spending, they have argued, crowds the private sector and piles regulations and bureaucracy onto companies.

why there is Trump

theautomaticearth |  It’s over! The entire model our societies have been based on for at least as long as we ourselves have lived, is over! That’s why there’s Trump.

There is no growth. There hasn’t been any real growth for years. All there is left are empty hollow sunshiny S&P stock market numbers propped up with ultra cheap debt and buybacks, and employment figures that hide untold millions hiding from the labor force. And most of all there’s debt, public as well as private, that has served to keep an illusion of growth alive and now increasingly no longer can.

These false growth numbers have one purpose only: for the public to keep the incumbent powers that be in their plush seats. But they could always ever only pull the curtain of Oz over people’s eyes for so long, and it’s no longer so long. 

That’s what the ascent of Trump means, and Brexit, Le Pen, and all the others. It’s over. What has driven us for all our lives has lost both its direction and its energy.

We are smack in the middle of the most important global development in decades, in some respects arguably even in centuries, a veritable revolution, which will continue to be the most important factor to shape the world for years to come, and I don’t see anybody talking about it. That has me puzzled.

The development in question is the end of global economic growth, which will lead inexorably to the end of centralization (including globalization). It will also mean the end of the existence of most, and especially the most powerful, international institutions.

In the same way it will be the end of -almost- all traditional political parties, which have ruled their countries for decades and are already today at or near record low support levels (if you’re not clear on what’s going on, look there, look at Europe!)

This is not a matter of what anyone, or any group of people, might want or prefer, it’s a matter of ‘forces’ that are beyond our control, that are bigger and more far-reaching than our mere opinions, even though they may be man-made.

Global Beta Test: Everyday People Will Gleefully Murder Their Neighbors If Asked By The State

libraryofsocialscience |  Well over 200 million people were killed in the twentieth century as a result of political violence generated by nations. Episodes of mass slaughter are given names like war, genocide, democide, social annihilation and murder by government. It seems as though the world has been living through an epidemic, or malignant disease.

Former National Security Adviser Zbigniew Brzezinski states that the 20th century was dominated by the “politics of organized insanity.” Yet nowhere does one find a systematic concept of psychopathology to characterize the monumentally destructive, often bizarre events of political history. 

In the privacy of a movie theater—witnessing the carnage, absurdity and futility of battle—people often think to themselves, “War is insane.” But what happens when people leave the theater? Where are studies of the “war disorder”?

Freud in 1930 proposed a "pathology of cultural communities.” Chapter I of Norman O. Brown’s classic Life Against Death: The Psychoanalytic Meaning of History (1959) is entitled “The Disease Called Man” and Chapter II, “Neurosis and History.” Neurosis, Brown says, is not an occasional aberration and not just in other people. Rather, neurosis is an “essential consequence of civilization or culture” and therefore is “in us, and in us all the time.”

Roger Griffin, an authority on Fascism, summarizes his conclusions about Nazi destructiveness on his website: “Since so many millions were involved in Nazism and the Holocaust, this can’t be explained in terms of madness or pathology: Something more basic had to be involved.” Why the a priori assumption that just because millions of people are involved, a social movement cannot be characterized as a form of madness or pathology?

In this paper, I discuss the concept of collective psychopathology. I begin by focusing on the case-study of Adolf Hitler and Nazism, specifically the behavior of Hitler and Germany during the final years of the Second World War. I will show how Hitler acted to bring about the destruction of Germany. What occurred may be understood as a form of psychopathology enacted upon the stage of society. 

Hitler fought in the First World War, in which two million German men were killed and millions more maimed. In spite of the immense suffering that he and his comrades endured, Hitler refused to renounce the idea of warfare. Rather, he glorified the death of the German soldier in battle.

In Mein Kampf, Hitler wrote that in 1914 his young volunteer regiment had received its baptism of fire. With “Fatherland love in our heart and songs on our lips,” Hitler wrote, they had gone into battle “as to a dance.” The most precious blood, he said, “sacrificed itself joyfully.”

Upon assuming power as Chancellor in 1933, Hitler immediately began fantasizing about the Second World War—which would necessitate the death of millions more German men. In one of a series of conversations with Herman Rauschning in the mid-30s, he stated that he would be prepared for the “blood sacrifice of another German generation;” that he would not hesitate to take the deaths of 2 or 3 million German soldiers on his conscience “fully aware of the heaviness of sacrifice.”

In another conversation with Rauschning, Hitler said, “We all know what world war means. We must shake off sentimentality and be hard.” He declared that when he took Germany to war, he would not hesitate because of the “10 million men I shall be sending to their deaths.” In planning for war, Hitler was preparing for the slaughter of German soldiers.

I am going to cite during the course of this paper an article written by psychiatrist Stuart Twemlow and psychologist George Hough published in the journal Psychoanalysis and Psychotherapy. Looking at group dynamics from a clinical perspective, the authors develop the concept of a “psychotic fantasy of masochistic group death” and show how a leader can be both the “victim and perpetrator of a large group’s masochistic unconscious wishes and yearnings for death and martyrdom.”

conspicuous consumption > value of consumer = martial law, rationing, poverty, war

economic-undertow |  The West was to become a Keynesian paradise of endless abundance and leisure, a suburbanite fairyland of Negro-free gated ‘communities’, of pastel McMansions and luxury SUVs; of gourmet meals crafted from GMO ingredients washed down with magnums of Veuve Clicquot and narcissism. We would play croquet as eternal children under the glorious sunshine of prosperity while ‘disutility’ (labor) would be performed ‘somewhere else’ (Mexico). The waste and destruction associated with industrialization would vanish because we would all be rich enough to hire robots to clean up after us.

There were a few clouds: the tail-end of trivial conflicts in Central America; the ‘War on Drugs’, the Asian finance crisis in 1997 and the collapse of the Russian economy the following year. Long Term Capital Management followed the Russian economy into the toilet in early 1998 necessitating the first ‘rescue us or else’ mega-bailout of Wall Street. These events were diversionary theater: people who could afford it lost some money, bosses who badly needed new jobs lost theirs. All in all the entire reconfiguration process turned out to be remarkably painless.

Looking back, the notion of final geopolitical resolution was naively optimistic, a quaint artifact of a particular zeitgeist, like Beatle Boots or flip cellphones. What was really happening was the ending of the ending: ancient monsters were not vanquished only hibernating so as to take new forms. Now, when we need it most and want it least, history has stormed out of its coffin like a vengeful, blood-hungry vampire, reminding us all why we wanted to be rid of it in the first place.

Enter the new millennium and (quasi-)liberal democracy and finance capitalism are being shellacked and nobody can figure out why. Extreme events are tripping over each other like – add your favorite cliché here – cheese and macaroni. Radicals are ascendant as the status quo proves unable to prevent the consumption utopia from slipping out of reach. Strategies that once bore fruit are revealed as nonsense; military ‘stimulus’, central bank witch doctoring, austerity, institutionalized discrimination, trivial interest rate- and foreign exchange manipulation. The outcome is credit transfers from those with less to those with everything … and fury. With chaos on one side, dithering on the other, the public turns toward autocrats while societies — particularly across the arc of northern- and central Africa to south Asia — blow apart at the seams, writhing in agony, frantic to escape the vice-like grip of ‘less’ and unmet expectations.

This is the terror that dares not speak its name; not to be engulfed by refugees or shot by militants but forced by desperate necessity to become one! Rage is fear by another name.

Tyrants like Trump and Erdogan (and Clinton) are products of industrial resource capitalism no different from McMansions and automobiles, they are also fetishes. Unlike vicarious pleasure-pussy Taylor Swift, tyrants symbolize power, ruthlessness and control … and increasing surpluses. Their promise to harvest gains by whatever means is the substance of their public appeal. The relationship between tyrant and followers is symbiotic and self-reinforcing. Adherents give form and color to the tyrant’s outline while the tyrant suspends- or outruns institutional restraints, providing the necessary sanction for adherents to act out their own impulses, destructive or otherwise.

The emergence of tyrants like Trump and Erdogan (and Clintons) is suggestive: that technology cannot produce the consumer outcomes we are desperate to preserve. If technology could save us autocrats would not be necessary. They are reductive rather than creative, their first- and last resort is coercion as when governments dragoon pensioners rather than machines to rescue finance.

what will these egregores use you humans for when you no longer work?

NYTimes |  Artificial intelligence is booming. But why now?

Move over, social media and mobility: Silicon Valley has a next big thing, John Markoff writes , and it’s A.I. and robots. It is useful to think of them as part of the same thing, since many robots are autonomous machines programmed for decision making based on A.I.

The movement can be thought of as a spread of computing intelligence everywhere, on wheels and wings, in your pocket and all through your house. That’s a big enough idea to fund scores of companies, and quite possibly set up the next Silicon Valley boom. And bubble.

Yet it’s worth asking how much of this is reality and how much is wishful thinking. Why is A.I. growing the way it didn’t over the last several decades, despite promises that it would?

The answer to that lies in the precursors to this A.I. moment, which more than anything has to do with the Google-led search boom 10 years ago.

In 2006, Google and Yahoo released new methods of analyzing the quirky real-world data they were picking up from doing search. Data from browsers can be thought of as a proxy for human behavior, as people wander the web. It’s typically called “unstructured” data, as opposed to the more regular information of things like banking and airline schedules that filled most of the world’s databases.

That new way of seeing the real world helped make search profitable and also enabled companies like Facebook to look into even stranger social behavior. The success also gave these companies plenty of money to plow into the problem.

To money, and the first ever caches of natural behavior in digital form, add cheaper computing. In 2006, Amazon also introduced its cloud-computing business. Over the last decade, retail cloud computing has become an inexpensive way for lots of people to work on data analysis and pattern finding, the heart of A.I.

Only one more thing was needed, and in 2007 Apple came out with the iPhone. Let that stand for browser-type natural data collection moving off desktops and blowing through the natural world. Along with other cheap sensors tied to the cloud, it has given us huge amounts of data about all sorts of things.

That created many more places where computers could do what they’ve always done, which is to seek efficiency. That has created a cycle:more observation, more machine learning of patterns, more value capture funding more observation.

It’s enough to make you believe in this boom.

What could make you believe it’s also a bubble? Start with the name, artificial intelligence. So far there is zero evidence we will be about to build machines that possess intelligence or will really think on their own. If big money goes into that stuff, run for the hills.

when bartenders and short-order cooks can't support the shopping malls we provided for them...,

dailyimpact |  It’s a picture that’s worth a thousand choruses of “Don’t Worry, Be Happy.” Here in the Seventh Straight Successful Year of the Recovery from the Great Recession, tucked into a corner of the Arizona Desert, is a line of parked Union Pacific locomotives. It was discovered on Google Earth, so it is, as they say, visible from space. There are 292 of them, baking in the sun like so many dinosaur skeletons, in a line stretching almost five miles. They, and the people who used to run them, are now “excess capacity” for one of the country’s largest freight haulers. In this, the Seventh Straight Successful Year of the Great Recovery.

No one should be surprised. But even when you know that trade — the buying and selling of stuff — has been slowing down all over the world for years, it is startling to see such stark, graphic evidence that we are all in deep trouble.

billingsgazette | GILLETTE — Burlington Northern Santa Fe Railroad officials say they are keeping about 150 locomotives and rail engines stored near Gillette because of decreased demand.

BNSF spokesman Matt Jones said the rail engines and two sets of box cars remain at the railroad's yard in the Donkey Creek area because of a downturn in rail shipping.

The problems can be attributed to the decline in the coal sector. The passage of the federal Clean Power Plan has pushed power plants away from coal and toward natural gas.

The impact can be seen in the Powder River Basin, as nearby coal companies Alpha Natural Resources and Arch Coal have filed for bankruptcy.

Jones said the declining demand for transportation has hit several sectors, not just coal.

inforum |  FARGO - An economic downturn involving a variety of commodities across various parts of the United States has resulted in BNSF Railway parking about 45 of its train locomotives at the railroad’s train yard just off 12th Avenue North west of the North Dakota State University campus.

“Customers’ volumes across a broad spectrum of commodities have come down somewhat from their prior estimates,” said Amy McBeth, a spokeswoman for BNSF. “As a result, we are strategically storing locomotives in some yard locations across our network.”

McBeth said the locomotives will remain stored until traffic volumes warrant returning them to service.

Quarterly profits for Forth Worth-based BNSF, which is owned by Berkshire Hathaway, fell 25 percent in the first quarter of 2016.

The railroad has been cutting staff in the wake of a changing economic environment that includes low energy prices, the strong dollar and other factors, McBeth said.

“Nationwide, while petroleum products volumes are down, coal is down, too, as are a number of other commodities,” she added.

 

newsok |  BNSF Railway has parked dozens of its locomotives at a storage yard north of downtown Oklahoma City over the past several weeks as slowing traffic demand has left the units idle.

The engines parked along the east side of Interstate 235 north of NW 23 are from BNSF trains throughout the country, company spokesman Joe Sloan said.

"We have a reduced amount of freight traffic now, and that storage point was available," he said.

Sloan said there is no timeline as to when the locomotives are expected back on the rails.

Princeton Study finds that ALL net employment growth in the US from 2005-2015 was in "Alternative Work Arrangements"

reddit | In case anyone is wondering (from the article)alternative work arrangements – defined as temporary help agency workers, on-call workers, contract workers, and independent contractors or freelancers.

The point is, companies are not hiring employees. They are filling roles with subcontractors from temp agencies (which have been exploding in size). These temporary workers have no job security, often no benefits (having to buy health insurance out of their pay for example), no way in hell they are getting stuff like stock options. And on average they get paid substantially less than the employees they replace. 

US population in 2006 was ~300M and in 2014 about ~320M. People above 65 years of age was 12.4% and 14.4% respectively - which comes to 37.2M and 46.08M old people respectively. (Source http://data.worldbank.org/indicator/SP.POP.65UP.TO.ZS/countries/US?display=graph)

US labor figures for age 65+ group seems to be 5.325M in 2006 and 7.971M in 2014 (Source http://data.bls.gov/timeseries/LNU02000097)

So the employment rate of 65+ group has gone from 14.31% in 2006 to 17.29% in 2014.

The old people's 'no-option-but-have-to-continue-working' rate has gone up by 3% from 2006 to 2014. Maybe people are finding it more difficult to retire in this hard-to-save economy and maybe this will only worsen as we move more away from the baby-boomer generation and move further deep into this bubble economy.

EDIT relevant data - life expectancy in 2006 was 77.9 and peaked at 78.8 in 2012.

the secret shame of middle-class americans...,

theatlantic |  In my house, we have learned to live a no-frills existence. We halved our mortgage payments through a loan-modification program. We drive a 1997 Toyota Avalon with 160,000 miles that I got from my father when he died. We haven’t taken a vacation in 10 years. We have no credit cards, only a debit card. We have no retirement savings, because we emptied a small 401(k) to pay for our younger daughter’s wedding. We eat out maybe once every two or three months. Though I was a film critic for many years, I seldom go to the movies now. We shop sales. We forgo house and car repairs until they are absolutely necessary. We count pennies.

I don’t ask for or expect any sympathy. I am responsible for my quagmire—no one else. I didn’t get gulled into overextending myself by unscrupulous credit merchants. Basically, I screwed up, royally. I lived beyond my means, primarily because my means kept dwindling. I didn’t take the actions I should have taken, like selling my house and downsizing, though selling might not have covered what I owed on my mortgage. And let me be clear that I am not crying over my plight. I have it a lot better than many, probably most, Americans—which is my point. Maybe we all screwed up. Maybe the 47 percent of American adults who would have trouble with a $400 emergency should have done things differently and more rationally. Maybe we all lived more grandly than we should have. But I doubt that brushstroke should be applied so broadly. Many middle-class wage earners are victims of the economy, and, perhaps, of that great, glowing, irresistible American promise that has been drummed into our heads since birth: Just work hard and you can have it all.

If there is any good news, it is that even as wages have stagnated, a lot of things, especially durable goods like TVs and computers, have been getting steadily cheaper. So, by and large, has clothing (though prices have risen modestly in recent years). Housing costs, as measured by the price per square foot of a median-priced and median-sized home, have been stable, even accounting for huge variations from one real-estate market to another. But some things, like health care and higher education, cost more—a lot more. And, of course, these are hardly trivial items. Life happens, and it happens to cost a lot—sometimes more than we can pay.

Yet even that is not the whole story. Life happens, yes, but shit happens, too—those unexpected expenses that are an unavoidable feature of life. Four-hundred-dollar emergencies are not mere hypotheticals, nor are $2,000 emergencies, nor are … well, pick a number. The fact is that emergencies always arise; they are an intrinsic part of our existence. Financial advisers suggest that we save at least 10 to 15 percent of our income for retirement and against such eventualities. But the primary reason many of us can’t save for a rainy day is that we live in an ongoing storm. Every day, it seems, there is some new, unanticipated expense—a stove that won’t light, a car that won’t start, a dog that limps, a faucet that leaks. And those are only the small things. In a survey of American finances published last year by Pew, 60 percent of respondents said they had suffered some sort of “economic shock” in the past 12 months—a drop in income, a hospital visit, the loss of a spouse, a major repair. More than half struggled to make ends meet after their most expensive economic emergency. Even 34 percent of the respondents who made more than $100,000 a year said they felt strain as a result of an economic shock. Again, I know. After the job loss, the co‑op board’s rejections, the tax penalties, there was one more wallop: A publisher with whom I had signed a book contract, and from whom I had received an advance, sued me to have the advance returned after I missed a deadline. (Book deadlines are commonly missed and routinely extended.)

In effect, economics comes down to a great Bruce Eric Kaplan New Yorker cartoon that was captioned: “We thought it was a rough patch, but it turned out to be our life.”

not just manufacturing, the global slowdown is monetary

alhambrapartners |  The Wall Street Journal reported a few days ago (h/t ZeroHedge) on the status of the ongoing disruption in domestic production of long haul trucks and vehicles. In what can only be confirmation of the state of US manufacturing, the huge drop in orders for new trucks matches shippers’ perceptions of the actual economic flow in goods. While economists want that to be an isolated circumstance of only manufacturing, goods activities account for a significant proportion of services as well. And it is getting bad:

Orders for new big rigs plunged and inventories of unsold trucks soared to their highest levels since just before the financial crisis, as uncertainty about future demand and a weak market for freight transportation weighed on truck manufacturers.

About 67,000 Class 8 trucks are sitting unsold on dealer lots, after sales in March dropped 37% from a year earlier to 16,000 vehicles, according to ACT Research. Class 8 trucks are the type most commonly used on long-haul routes. Inventories haven’t been this high since early 2007, said Kenny Vieth, president of ACT.

It leaves no doubt that “something” is very wrong now in manufacturing and normal economic flow.

“Fleets are being very cautious in the current uncertain economic environment,” wrote Don Ake, a vice president with FTR Transportation Intelligence, which reported similar order numbers for March. “Freight has slowed due to the manufacturing recession, so they have sufficient trucks to meet current demand.”

Some of this reduction in 2016, as the Journal reports, is due to companies over-ordering in 2014 and 2015 based on the narrative that the economy was actually healing, or at worse would stay in its “new normal.” It raises the issue as to whether these conditions and the manufacturing recession they reflect are cyclical or structural; or both.

As I wrote yesterday, the contraction in goods and the US economy’s basis for them may or may not be heading toward recession. It is clear, however, that whatever the ultimate cycle reality there are deeper imbalances that run back several years, likely traced to decades of financialization that is now overturning, and thus really supersedes cyclical discussion. What we see in the US is not limited to the US, however; it is a global phenomenon, which can only mean one possible explanation.

the economic growth system has reached its limits in very strange ways...,

ourfiniteworld |  We don’t just extract fossil fuels. Instead, whether we intend to or not, we get a lot of other things as well: rising debt, rising pollution, and a more complex economy.

The system acts as if whenever one pump dispenses the energy products we want, another pump disperses other products we don’t want. Let’s look at three of the big unwanted “co-products.”

1. Rising debt is an issue because fossil fuels give us things that would never have been possible, in the absence of fossil fuels. For example, thanks to fossil fuels, farmers can have such things as metal plows instead of wooden ones and barbed wire to separate their property from the property of others. Fossil fuels provide many more advanced capabilities as well, including tractors, fertilizer, pesticides, GPS systems to guide tractors, trucks to take food to market, modern roads, and refrigeration.

The benefits of fossil fuels are immense, but can only be experienced once fossil fuels are in use. Because of this, we have adapted our debt system to be a much greater part of the economy than it ever needed to be, prior to the use of fossil fuels. As the cost of fossil fuel extraction rises, ever more debt is required to place these fossil fuels in use. The Bank for International Settlements tells us that worldwide, between 2006 and 2014, the amount of oil and gas company bonds outstanding increased by an average of 15% per year, while syndicated bank loans to oil and gas companies increased by an average of 13% per year. Taken together, about $3 trillion of these types of loans to the oil and gas companies were outstanding at the end of 2014.

As the cost of fossil fuels rises, the cost of everything made using fossil fuels tends to rise as well. Cars, trucks, and homes become more expensive to build, especially if they are intended to be energy efficient. The cost of capital goods purchased by businesses rises as well, since these too are made with fossil fuels. Needless to say, the amount of debt to purchase all of these goods rises as well. Part of the reason for the increased debt is simply because it becomes more difficult for businesses and individuals to purchase needed goods out of cash flow.

As long as fossil fuel prices are rising (not just the cost of extraction), this rising debt doesn’t look like a huge problem. The rising fossil fuel prices push the general inflation rate higher. But once prices stop rising, and in fact start falling, the amount of debt outstanding suddenly seems much more onerous.

2. Rising pollution from fossil fuels is another issue as we use an increasing amount of fossil fuels. If only a tiny amount of fossil fuels is used, pollution tends not to be much of an issue. Air can remain safe for breathing and water can remain safe for drinking. Increasing CO2 pollution is not a significant issue.

Once we start using increasing amounts, pollution becomes a greater issue. Partly this is the case because natural sinks reach their saturation point. Another is the changing nature of technology as we move to more advanced techniques. Techniques such as deep sea drilling, hydraulic fracturing, and arctic drilling have pollution risks that less advanced techniques did not have.

3. A more complex economy is a less obvious co-product of the increasing use of fossil fuels. In a very simple economy, there is little need for big government and big business. If there are businesses, they can be run by a small number of individuals, with little investment in capital goods. A king, together with a handful of appointees, can operate the government if it does not provide much in the way of services such as paved roads, armies, and schools. International trade is not a huge necessity because workers can provide nearly all necessary goods and services with local materials.

The use of increasing amounts of fossil fuels changes the situation materially. Fossil fuels are what allow us to have metals in quantity–without fossil fuels, we need to cut down forests, use the trees to make charcoal, and use the charcoal to make small quantities of metals.

Once fossil fuels are available in quantity, they allow the economy to make modern capital goods, such as machines, oil drilling equipment, hydraulic dump trucks, farming equipment, and airplanes. Businesses need to be much larger to produce and own such equipment. International trade becomes much more important, because a much broader array of materials is needed to make and operate these devices. Education becomes ever more important, as devices become increasingly complex.

Governments become larger, to deal with the additional services they now need to provide.

Increasing complexity has a downside. If an increasing share of the output of the economy is funneled into management pay, expenditures for capital goods, and other expenditures associated with an increasingly complex economy (including higher taxes, and more dividend and interest payments), less of the output of the economy is available for “ordinary” laborers–including those without advanced training or supervisory responsibilities.

As a result, pay for these workers is likely to fall relative to the rising cost of living. Some would-be workers may drop out of the labor force, because the benefits of working are too low compared to other costs, such as childcare and transportation costs. Ultimately, the low wages of these workers can be expected to start causing problems for the economic system as a whole, because these workers can no longer afford the output of the system. These workers reduce their purchases of houses and cars, both of which are produced using fossil fuels and other commodities.

Ultimately, the prices of commodities fall below their cost of production. This happens because there are so many of these ordinary laborers, and the lack of good wages for these workers tends to slow the “demand” side of the economic growth loop. This is the problem that we are now experiencing. Figure 4 below shows how the system would work, if increasing complexity were not interfering with economic growth.

watch five years of oil drilling collapse in seconds

Source: Bloomberg

i guess it's going to be foodstamps...,

kansascity |  Dale Dorsey, after working 33 years, is facing a 51 percent cut to his pension. He’s not facing it alone.

He’s married. Dorsey’s mother lives with them. And, having gotten a late start on a family, so do his children, one in the fourth grade and one in the eighth grade.

“This is just going to cripple my family,” said Dorsey, who was one of 750 retirees and workers who attended a town hall meeting Tuesday in Kansas City.

They came to battle massive pension cuts proposed by the Central States Pension Fund, which covers 400,000 participants, 220,000 of them retired. The fund is so short of money, it will go broke in 10 years. 

A controversial 2014 law allowed the pension to propose the cuts, many of them by half or more, as a way to perhaps save the fund.

Some at the session said that allowing the cuts — the first test of the law — meant others would follow. Two much smaller pensions also have sought similar relief under the law, and still more pensions are significantly underfunded.

“What’s happening to us is a microcosm of what’s going to happen to the rest of the pensions in the United States,” said Jay Perry, a longtime member of Teamsters Local 41 who worked for Yellow Freight, now called YRC Worldwide Inc.

For nearly two hours inside the Kansas City Convention Center, 30 speakers took their turns asking for help from Kenneth Feinberg. He’s the noted mediator who distributed billions of dollars to victims of the Sept. 11 terrorist attacks and has overseen General Motors’ compensation for accidents from faulty ignition switches.

The U.S. Treasury has named Feinberg special master to decide by May whether the proposal from the Central States Pension Fund meets the 2014 law. He has held seven other public sessions, with Kansas City’s being the last. 

Those who spoke Tuesday asked him to reject the plan at least to give them and others a chance to find a less devastating solution. They said that cuts wouldn’t save the pension, that they’d still be out.

“This pension should be paid out in full until it’s gone,” said Larry Logston Jr., who said he’s among those facing a 50 percent pension cut.

Read more here: http://www.kansascity.com/news/business/article60760061.html#storylink=cpy