Where The August Jobs Were: Who Is Hiring And Who Isn’t… And The Retail Apocalypse

Whether today’s payrolls report was “stagflationary” or simply lousy, is debatable, but with just 96K private payrolls created in August (government added 34K jobs, the best “job category” in the month) one thing is certain: this was the 4th lowest private jobs print in the past 3 years.

And yet, if one looks at the various job sectors, the emerging picture is hardly a dismal one, with 9 industries adding jobs, and 4 losing.

Some of the highlights: US manufacturers continued to add jobs, though at a slower pace with August factory payrolls rising 3,000 after a downwardly revised 4,000. Meanwhile, the leading indicator for future job growth, temporary help agency employment, jumped by 15,400 after falling the previous three months and raising concerns of broader labor-market weakness.

Separately, government added 34K jobs, “not great, not terrible“, while low paying jobs in the education and health category were the second biggest addition in August, at 32,000; meanwhile Professional, Business and Service jobs added 21.6K (ex-temp). Below is a visual breakdown of all the main categories:

Looking at wage growth, below is the 3 month annualized growth in average hourly earnings in select industries:

  • Financial activities  5.2%
  • Information  5.1%
  • Wholesale trade  4.7%
  • Professional and business services  4.5%
  • Transportation and warehousing  4.5%
  • Retail trade  4.5%
  • Trade, transportation, and utilities  4.5%

Finally, digging into the numbers above, below we show the fine detail level for industries with the highest and lowest rates of employment growth for the most recent month.

But the big surprise – or perhaps not – was retail, where the Amazonification of America is accelerating, in the process destroying the legacy brick and mortar sector, which peaked in Jan 2017, and has lost jobs for 7 consecutive months, and 8 of the past 9, as the legacy retail sector is getting gutted.

via ZeroHedge News https://ift.tt/2UAuQRy Tyler Durden

Trump’s Trade War Is Making America Love Trade Again. So Why Are Democrats Going Protectionist?

President Donald Trump’s new round of tariffs on Chinese goods is going into effect even as we speak. But the more Trump escalates his trade war, the more unpopular protectionism gets with American voters, especially Democratic ones. So all the Democratic presidential candidates are sprinting to put distance between their trade policies and Trump’s America Firstism, right? Wrong!

Indeed, the party’s leading presidential contenders, Sens. Bernie Sanders (I–Vt.) and Elizabeth Warren (D–Mass.), who are setting the tone for the rest of the pack, are functionally identical to if not worse than Trump on this issue. The reason is that they don’t think that average Democratic voters care enough about trade to punish them for their protectionism.

It seems like Trump’s trade bashing has done more to bring people around to the cause of free trade in two years than English political economist Adam Smith’s canonical defense in The Wealth of Nations did in nearly 250. Indeed, literally every time the “chosen one” saber-rattles against China, Americans become more positively disposed toward trade. The Chicago Council Survey found last year that support for trade among Americans had touched an all-time high, with 82 percent of respondents saying it was good for the economy, 85 percent saying it was good for consumers like them, and 67 percent saying it was good for America. These findings were pretty much confirmed last month by a Pew Research poll, which found that 65 percent of Americans believe that free trade is good for the country. Two years ago, only 50 percent did.

Democratic voters in particular, Pew found, had jettisoned their 1990s hostility to trade completely. About 73 percent of those who were or leaned Democratic now agree that trade is good for the country, a 13-point jump even from two years ago. Likewise, a Hill-HarrisX poll found that 58 percent of Democrats believe that Trump’s China negotiations would result in fewer jobs and economic opportunities.

Even more to the point, in Michigan—a swing state that has historically veered Democratic but Trump narrowly won—a statewide poll by the Detroit Regional Chamber found a few weeks ago that voters believe that tariffs on cars made in foreign countries hurt the state’s automotive industry, that tariffs on Chinese imports hurt Michigan farmers, and that tariffs on foreign products hurt consumers like themselves.

Democratic presidential contenders have concluded that all this represents mere revulsion at Trump’s style, not a serious change of heart. But Americans would have to be blind to not see the riches that trade has delivered them.

The Peterson Institute for International Economics has estimated that expansion of free trade has generated $2.1 trillion for America between 1950 and 2016. That works out on average to $18,000 in income for American households. These gains have gone disproportionately to working-class households that shop at Walmarts stacked with foreign goods. If an American hasn’t felt a bigger pinch from the soaring prices of indigenously generated health care, education, and other services, it is because of the plummeting price of foreign goods.

But last year, for the first time in a decade, the prices of furniture, clothes, and electronics stopped falling. And if Trump does not back off his trade war with China, only divine intervention would stop them from spiking.

Nor are consumers the only ones getting hurt. Producers, the intended beneficiaries of Trump’s trade war, are too.

China’s retaliatory tariffs on American soybeans, wheat, and pork are decimating farmers. The National Farmers Union has issued a scathing condemnation of Trump’s trade war. “[I]nstead of looking to solve existing problems in our agricultural sector, this administration has just created new ones,” its statement says. “Between burning bridges with all of our biggest trading partners and undermining our domestic biofuels industry, President Trump is making things worse, not better.” Meanwhile, more than 60 percent of imported goods are used in production, so increased tariffs means increased production costs for American manufacturers.

Given all this, Democrats should be mounting a vigorous case against Trump’s trade policies, pointing out that beggaring-your-partner trade wars aren’t “easy to win”; they are self-injurious.

But that is not what they are doing. They are harrumphing against Trump’s Twitter diplomacy and his hyper-belligerent style. But they are otherwise unwilling to stick up for trade or even defend the era of trade liberalization that President Bill Clinton ushered in with the North American Free Trade Agreement (NAFTA) and the normalization of trade ties with China.

Among the top 10 Democrats who will be on the debate stage next week, only former Texas Rep. Beto O’Rourke, who represented the NAFTA-dependent border town of El Paso and is polling at 2 percent, is willing to defend the treaty. Former Vice President Joe Biden, who voted for NAFTA when he was a senator, has gone mum. He slams Trump’s “irresponsible tariff war” but then undercuts his own criticism by declaring that “we do need to get tough with China.” Sen. Kamala Harris (D–Calif.) tosses offhand comments about Trump’s tariffs being a “trade tax” but then quickly abandons the subject. South Bend, Indiana, Mayor Pete Buttigieg has lambasted Trump’s yammerings about America’s export imbalance with China as a red herring, but otherwise he is opaque about his plans.

But there is no ambiguity with Sanders and Warren. Sanders has always been an unrepentant protectionist. If he could have his druthers, he would ban trade with any country poorer than America on the Marxist theory that competition with lower-wage workers leads to the immiseration of the American working class.

Warren is even more ideologically ambitious. Like Trump, she couches her plans under the rubric of fair trade. But for Trump, in theory if not practice, that means forcing other countries to slash their trade barriers and moving toward a no-tariff world where no one has an artificial advantage over America. Warren wants to use America’s economic might to forcibly enlist countries in a leftist crusade. As The Nation‘s Todd Tucker approvingly notes, “Warren’s trade plan is as much a theory of power as it is a set of ideas.”

She has drawn up a tall list of preconditions that countries must meet to qualify to trade with America. These cover almost everything on the leftist wish list, including protecting religious freedom and human rights, signing the Paris Accords, fighting public corruption, combating sex trafficking, stopping tax evasion, and enforcing labor rights. She’d renegotiate every existing trade deal in accordance with her purity criteria. But given that no country on the planet, not even America, currently lives up to her lofty standards, global trade would basically come to a grinding halt under her.

This is totally cuckoo, and it makes Trump look like a veritable trade dove. “Elizabeth Warren’s trade policy is even more protectionist and unilateralist than Donald Trump’s,” writes Daniel Drezner in The Washington Post. Yet if she’s the Democratic nominee, he says he’d “hold his nose” and vote for her.

And that, in a nutshell, is why Sanders and Warren have no qualms about indulging their extremist anti-trade fantasies. They believe that moderates are so desperate to get rid of Trump that they will vote for any Democrat. In addition, an extremist strategy will energize their progressive and labor base. A majority of voters in a swing state like Michigan might be put off by their protectionism. But labor unions that Trump managed to woo away with his trade-bashing might return to the Democratic fold if they double down on his mantle.

Time will tell if this strategy will work. But one thing is for certain: If Sanders or Warren win, they will hammer the final nail in the Trump-made coffin of free trade, no matter how much ordinary Americans want the cause to live on.

A version of this column originally appeared in The Week.

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Trump’s Trade War Is Making America Love Trade Again. So Why Are Democrats Going Protectionist?

President Donald Trump’s new round of tariffs on Chinese goods is going into effect even as we speak. But the more Trump escalates his trade war, the more unpopular protectionism gets with American voters, especially Democratic ones. So all the Democratic presidential candidates are sprinting to put distance between their trade policies and Trump’s America Firstism, right? Wrong!

Indeed, the party’s leading presidential contenders, Sens. Bernie Sanders (I–Vt.) and Elizabeth Warren (D–Mass.), who are setting the tone for the rest of the pack, are functionally identical to if not worse than Trump on this issue. The reason is that they don’t think that average Democratic voters care enough about trade to punish them for their protectionism.

It seems like Trump’s trade bashing has done more to bring people around to the cause of free trade in two years than English political economist Adam Smith’s canonical defense in The Wealth of Nations did in nearly 250. Indeed, literally every time the “chosen one” saber-rattles against China, Americans become more positively disposed toward trade. The Chicago Council Survey found last year that support for trade among Americans had touched an all-time high, with 82 percent of respondents saying it was good for the economy, 85 percent saying it was good for consumers like them, and 67 percent saying it was good for America. These findings were pretty much confirmed last month by a Pew Research poll, which found that 65 percent of Americans believe that free trade is good for the country. Two years ago, only 50 percent did.

Democratic voters in particular, Pew found, had jettisoned their 1990s hostility to trade completely. About 73 percent of those who were or leaned Democratic now agree that trade is good for the country, a 13-point jump even from two years ago. Likewise, a Hill-HarrisX poll found that 58 percent of Democrats believe that Trump’s China negotiations would result in fewer jobs and economic opportunities.

Even more to the point, in Michigan—a swing state that has historically veered Democratic but Trump narrowly won—a statewide poll by the Detroit Regional Chamber found a few weeks ago that voters believe that tariffs on cars made in foreign countries hurt the state’s automotive industry, that tariffs on Chinese imports hurt Michigan farmers, and that tariffs on foreign products hurt consumers like themselves.

Democratic presidential contenders have concluded that all this represents mere revulsion at Trump’s style, not a serious change of heart. But Americans would have to be blind to not see the riches that trade has delivered them.

The Peterson Institute for International Economics has estimated that expansion of free trade has generated $2.1 trillion for America between 1950 and 2016. That works out on average to $18,000 in income for American households. These gains have gone disproportionately to working-class households that shop at Walmarts stacked with foreign goods. If an American hasn’t felt a bigger pinch from the soaring prices of indigenously generated health care, education, and other services, it is because of the plummeting price of foreign goods.

But last year, for the first time in a decade, the prices of furniture, clothes, and electronics stopped falling. And if Trump does not back off his trade war with China, only divine intervention would stop them from spiking.

Nor are consumers the only ones getting hurt. Producers, the intended beneficiaries of Trump’s trade war, are too.

China’s retaliatory tariffs on American soybeans, wheat, and pork are decimating farmers. The National Farmers Union has issued a scathing condemnation of Trump’s trade war. “[I]nstead of looking to solve existing problems in our agricultural sector, this administration has just created new ones,” its statement says. “Between burning bridges with all of our biggest trading partners and undermining our domestic biofuels industry, President Trump is making things worse, not better.” Meanwhile, more than 60 percent of imported goods are used in production, so increased tariffs means increased production costs for American manufacturers.

Given all this, Democrats should be mounting a vigorous case against Trump’s trade policies, pointing out that beggaring-your-partner trade wars aren’t “easy to win”; they are self-injurious.

But that is not what they are doing. They are harrumphing against Trump’s Twitter diplomacy and his hyper-belligerent style. But they are otherwise unwilling to stick up for trade or even defend the era of trade liberalization that President Bill Clinton ushered in with the North American Free Trade Agreement (NAFTA) and the normalization of trade ties with China.

Among the top 10 Democrats who will be on the debate stage next week, only former Texas Rep. Beto O’Rourke, who represented the NAFTA-dependent border town of El Paso and is polling at 2 percent, is willing to defend the treaty. Former Vice President Joe Biden, who voted for NAFTA when he was a senator, has gone mum. He slams Trump’s “irresponsible tariff war” but then undercuts his own criticism by declaring that “we do need to get tough with China.” Sen. Kamala Harris (D–Calif.) tosses offhand comments about Trump’s tariffs being a “trade tax” but then quickly abandons the subject. South Bend, Indiana, Mayor Pete Buttigieg has lambasted Trump’s yammerings about America’s export imbalance with China as a red herring, but otherwise he is opaque about his plans.

But there is no ambiguity with Sanders and Warren. Sanders has always been an unrepentant protectionist. If he could have his druthers, he would ban trade with any country poorer than America on the Marxist theory that competition with lower-wage workers leads to the immiseration of the American working class.

Warren is even more ideologically ambitious. Like Trump, she couches her plans under the rubric of fair trade. But for Trump, in theory if not practice, that means forcing other countries to slash their trade barriers and moving toward a no-tariff world where no one has an artificial advantage over America. Warren wants to use America’s economic might to forcibly enlist countries in a leftist crusade. As The Nation‘s Todd Tucker approvingly notes, “Warren’s trade plan is as much a theory of power as it is a set of ideas.”

She has drawn up a tall list of preconditions that countries must meet to qualify to trade with America. These cover almost everything on the leftist wish list, including protecting religious freedom and human rights, signing the Paris Accords, fighting public corruption, combating sex trafficking, stopping tax evasion, and enforcing labor rights. She’d renegotiate every existing trade deal in accordance with her purity criteria. But given that no country on the planet, not even America, currently lives up to her lofty standards, global trade would basically come to a grinding halt under her.

This is totally cuckoo, and it makes Trump look like a veritable trade dove. “Elizabeth Warren’s trade policy is even more protectionist and unilateralist than Donald Trump’s,” writes Daniel Drezner in The Washington Post. Yet if she’s the Democratic nominee, he says he’d “hold his nose” and vote for her.

And that, in a nutshell, is why Sanders and Warren have no qualms about indulging their extremist anti-trade fantasies. They believe that moderates are so desperate to get rid of Trump that they will vote for any Democrat. In addition, an extremist strategy will energize their progressive and labor base. A majority of voters in a swing state like Michigan might be put off by their protectionism. But labor unions that Trump managed to woo away with his trade-bashing might return to the Democratic fold if they double down on his mantle.

Time will tell if this strategy will work. But one thing is for certain: If Sanders or Warren win, they will hammer the final nail in the Trump-made coffin of free trade, no matter how much ordinary Americans want the cause to live on.

A version of this column originally appeared in The Week.

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The Peace-Loving Military Robots’ Plot

Today Hollywood regularly turns Philip K. Dick‘s stories into movies, but no motion pictures based on his work existed when the novelist was alive. He did get to see some incomplete excerpts from Blade Runner, but that film wasn’t finished until after Dick’s death in 1982.

That’s not to say he never witnessed any other adaptations of his work, though. As early as 1956, the NBC radio series X Minus One, a science fiction anthology, aired episodes based on two Dick short stories, “Colony” and “The Defenders.”

Below I’ve embedded the show’s version of “The Defenders.” It isn’t the most artful radio drama you’ll ever hear, but it’s a pretty interesting artifact—a take on the Cold War that doesn’t exactly fit the stereotype of 1950s network fare. I’ll save any spoilery discussion until after the embed:


Download

Dick’s original story was about a war between the United States and the Soviet Union. Here the countries’ names are different—they’re the “Western Confederation” and the “Asian Confederation”—but that’s a pretty thin disguise. The citizens of both countries have moved underground to avoid the radiation on the surface, letting military robots do the actual fighting. Almost all production is geared toward the war effort, and the media are filled with reports of the terrible atrocities being conducted above the Earth’s crust.

Eventually—spoiler alert!—we learn that the whole war is a fraud. The surface isn’t radioactive at all, the robots aren’t actually fighting, and the masses huddled underground are being fed propaganda. (“We have a full-time division of a-class robots who do nothing but photograph the progress of a fictitious war using scale models. The entire destruction of San Francisco…took place on a tabletop.”) Interestingly, the rival superpowers’ governments aren’t behind the conspiracy. In fact, they’re being fooled too. The fraud is being maintained by the robots.

That might suggest that the story is a critique of the military-industrial complex—an argument that a runaway war production machine is operating on its own logic and keeping everyone else in the dark. But in another twist, the robots turn out to be quasi-benevolent. They believe the war is irrational, but they don’t think they can convince the human race of that. So they’ve appointed themselves the caretakers of humanity’s old cities and farmland. They’ve been destroying our munitions as soon as the weapons are sent to the surface, and they plan to reopen the world to us once we’ve outgrown “the need to direct your hatred of yourself away from you and on to others.” It’s as though the false world in The Matrix is being run by the supercomputer from WarGames, which has started reading Jung and lecturing everyone about shadow projection.

When a Western military leader finds out the truth, his first thought is that the other side’s underground settlements are unprotected, making this the perfect time to nuke the Asians into oblivion. He’s stopped when one of his own soldiers shoots him.

That’s right: Fragging saves the day. Probably not what you expected from a network show in 1956.

(To hear X Minus One‘s other Philip K. Dick adaption, go here. For past editions of the Friday A/V Club, go here.)

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The Peace-Loving Military Robots’ Plot

Today Hollywood regularly turns Philip K. Dick‘s stories into movies, but no motion pictures based on his work existed when the novelist was alive. He did get to see some incomplete excerpts from Blade Runner, but that film wasn’t finished until after Dick’s death in 1982.

That’s not to say he never witnessed any other adaptations of his work, though. As early as 1956, the NBC radio series X Minus One, a science fiction anthology, aired episodes based on two Dick short stories, “Colony” and “The Defenders.”

Below I’ve embedded the show’s version of “The Defenders.” It isn’t the most artful radio drama you’ll ever hear, but it’s a pretty interesting artifact—a take on the Cold War that doesn’t exactly fit the stereotype of 1950s network fare. I’ll save any spoilery discussion until after the embed:


Download

Dick’s original story was about a war between the United States and the Soviet Union. Here the countries’ names are different—they’re the “Western Confederation” and the “Asian Confederation”—but that’s a pretty thin disguise. The citizens of both countries have moved underground to avoid the radiation on the surface, letting military robots do the actual fighting. Almost all production is geared toward the war effort, and the media are filled with reports of the terrible atrocities being conducted above the Earth’s crust.

Eventually—spoiler alert!—we learn that the whole war is a fraud. The surface isn’t radioactive at all, the robots aren’t actually fighting, and the masses huddled underground are being fed propaganda. (“We have a full-time division of a-class robots who do nothing but photograph the progress of a fictitious war using scale models. The entire destruction of San Francisco…took place on a tabletop.”) Interestingly, the rival superpowers’ governments aren’t behind the conspiracy. In fact, they’re being fooled too. The fraud is being maintained by the robots.

That might suggest that the story is a critique of the military-industrial complex—an argument that a runaway war production machine is operating on its own logic and keeping everyone else in the dark. But in another twist, the robots turn out to be quasi-benevolent. They believe the war is irrational, but they don’t think they can convince the human race of that. So they’ve appointed themselves the caretakers of humanity’s old cities and farmland. They’ve been destroying our munitions as soon as the weapons are sent to the surface, and they plan to reopen the world to us once we’ve outgrown “the need to direct your hatred of yourself away from you and on to others.” It’s as though the false world in The Matrix is being run by the supercomputer from WarGames, which has started reading Jung and lecturing everyone about shadow projection.

When a Western military leader finds out the truth, his first thought is that the other side’s underground settlements are unprotected, making this the perfect time to nuke the Asians into oblivion. He’s stopped when one of his own soldiers shoots him.

That’s right: Fragging saves the day. Probably not what you expected from a network show in 1956.

(To hear X Minus One‘s other Philip K. Dick adaption, go here. For past editions of the Friday A/V Club, go here.)

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Farmageddon Is Real And Farmers Are Suffering

Via Bruce Wilds’ Advancing Time blog,

Farmageddon is real and very painful for a small segment of America. According to the Book of Revelation in the New Testament of the Bible, Armageddon is the prophesied location of a gathering of armies for a battle during the end times. Today many farmers living in America’s farm belt are facing tough times with no end in sight. The trade war with China has taken a toll by bringing grain exports to a near halt.  This has caused grain prices to tumble adding to the list of blows hitting farmers. While the number of people employed on farms has declined over the decades farming remains a big business and has a huge impact on many communities. In these areas, the money flowing into local businesses as farmers sell their crops is evident in everything from truck sales to the little things common in everyday life such as dining out or getting a haircut.

Net Farm Income (click to enlarge)

The USDA’s farm income forecasts are released three times a year. While little noticed by the average person living on the coast or in one of our many large cities this is a big deal. As mentioned earlier in this article farm income is not contained in a closed-loop but spills into other parts of the economy. Many areas in the heartland of America have not experienced the benefits showered upon Wall Street, because of this we should not be surprised if the gloom covering many areas of the country does not lift anytime soon. The chart to the right shows a “forecast of income” but fails to take the impact of the trade war into full consideration.

Sadly, getting support to the average working farmer is more difficult than it might seem. A recent article in AgMag claims About 9,000 “city slickers,” that means, people living in luxurious neighborhoods in large cities received a farm bailout from the Trump administration’s recent effort to minimize the impact of the trade war on farmers. An updated Environmental Working Group (EWG) analysis of Department of Agriculture data revealed that many recipients of the relief money live not in farm country but in large cities or other decidedly non-rural locations. These urban recipients of the bailout include members of farm families, landowners, and investors that provide land, capital, equipment for farms or make operational decisions for how a farm is run.

Modern Farming Is Capital Intense

Farm real estate debt is expected to reach $263.7 billion in 2019, a 5.1 percent annual increase. Of this real estate debt accounts for 61.8 percent of total farm debt. Due to the weakness in the prices of crops and livestock, many farmers today suffer cash flow issues and struggle to get financing to plant crops. Farmer access to capital continues to be primarily in the form of debt.Commercial banks and the FCS have become more cautious as bankruptcy filings in the Seventh Circuit (Illinois, Indiana, Wisconsin) and Eight Circuit (N Dakota to Arkansas) have hit a10-year high. Most operators try to hang on when grain prices are low, hoping to still be in business when prices increase. Efficient farmers with manageable debt levels have the flexibility to stay profitable throughout the cycle but the smaller often less efficient farmers generally feel a huge impact from a drop in income and tighter lending criteria.

Adding to the already bad situation down on the farm is the negative feedback flowing from the recent decision by the EPA to ramp up the number of waivers that it grants to the refining industry, absolving some smaller refiners of the requirement to buy ethanol. The Trump administration’s shocking decision to approve 31 and deny only six 2018 waiver requests has left the bio-fuels industry reeling was incensed. The Renewable Fuels Association (IRFA) Executive Director Monte Shaw stated in a press release. “With this action, President Trump has destroyed over a billion gallons of bio-fuel demand and broken his promise to Iowa voters to protect the [Renewable Fuels Standard].”  This caused futures prices for corn-based ethanol to plunge to a five-year low for this time of year and down roughly 25 percent since June. “The Trump administration has totally annihilated the margins for ethanol producers,” Charlie Sernatinger, head of global grains futures with ED&F Man Capital Markets, told the Wall Street Journal.

The EPA’s decision is merely the latest in a series of blows from Washington and the hits keep on coming. The U.S.-China trade war has battered the U.S. Midwest, as farmers have all but lost access to the Chinese market. China has turned to Brazil for ethanol and soybeans. Prices for U.S. soybeans, corn, and other agricultural commodities have plunged. Corn prices had rebounded after the Midwest was soaked in record-breaking floods that threatened corn plantings, however, the latest data from the U.S. Department of Agriculture shows that yields are not expected to be as hard hit as previously expected. Normally this would be good news for farmers but higher-than-expected supply has sent corn prices tumbling.

Several months ago JPMorgan told clients the American agriculture complex is on the verge of disaster, with farmers caught in the crossfire of an escalating trade war. Modern farming is a capital intense business and over the years many farmers have taken on debt. They have come to count on income from grain exports to service their obligations. JPMorgan analyst Ann Duignan alerted investors that, Overall, this is a perfect storm for US farmers,” Because of this, in May, Duignan downgraded John Deere’s stock to underweight, pointing to the fundamentals in the farm-belt as “rapidly deteriorating.”

Farm Implement Sales Have Tanked

The pain felt in the farm-belt is very evident at dozens of John Deere dealerships where the agriculture bust that has triggered massive tractor sales declines and left stores reeling. Reuters contacted dozens of John Deere Stores across the Central and Midwest U.S. in an effort to access what the trade war and adverse weather conditions have had on tractor sales this year. It reports that about a half dozen stores across the Midwest said sales in the first half of 2019 collapsed. One store, in Geneseo, Illinois, saw sales fall 50% from the previous year. Sales orders for tractors next season are down, this is an indication that farmers expect the bust will continue through 2020.

The USDA forecasts the farm sector’s risk of insolvency to be at its highest level since 2002. The value of land, the most stable asset on the farmer’s balance sheet is impacted by commodity prices, interest rates and the cyclical nature of farm income. From the farmer’s point of view, Trump may have made a big mistake when he recently decided to hold off on additional tariffs on Chinese goods because it will drag out negotiations. The President’s motivation seems to be keeping consumer prices in stores low over the holidays. Christmas sales make up a good share of retailers overall annual revenue. Unfortunately, his move also delayed a resolution to the trade talks by removing pressure on China to come to the table. The bottom-line is farmers can expect export sales of grain pushed back again because China views that punishing the American farmer is a chief weapon in the negotiations.

via ZeroHedge News https://ift.tt/2ZU3p6z Tyler Durden

It’s now “incendiary” to say there are two genders

Happy Friday everyone. Let’s bring on the weekly absurdity!

School cop handcuffs and screams at autistic 8-year-old

An eight year old autistic boy in Southlake, Texas became agitated in his guidance counselor’s office.

At one point the child became fidgety and took out a jump rope (that had been provided to him by the school). Amazingly enough, the counselor felt threatened by this and asked the school cop to come into the office.

So the cop handcuffed the child, screamed in his face, and mocked his frustration. The cop also claimed that the child had a weapon, which he described as “homemade nunchucks”. This ‘weapon’ turned out to be the jump rope that the child was twirling.

When the parents came to retrieve their child, the officer continued to harass the parents, sarcastically telling them, “great parenting.”

Click here for the full story.

82 days in jail for possession of honey

A Jamaican man legally residing in the USA returned from his yearly visit to his home island.

With him he brought two bottles of honey. Unfortunately the airport drug dog thought the man’s bag smelled suspicious. And an initial test said the honey was actually meth.

Another drug test revealed that the honey bottles were shockingly filled with honey.

But they still didn’t want to release him, even on bail. They wanted to send the honey off for more advanced testing.

EIGHTY TWO DAYS LATER the results came back. Honey. US Customs finally released the man from jail… but by then he had already lost his job after being absent for nearly three months.

Click here for the full story.

MSNBC calls it “incendiary” to say there are two genders

MSNBC is an allegedly non-biased news outlet. All they do is report the facts, right?

Last week, an anchor reported that a candidate for Governor “is out with a new TV ad this week, making incendiary comments about gender.”

Here’s what he said: “As a Doctor, I can assure you, there are only two genders.”

To MSNBC, it is a newsworthy reportable fact that this statement is “incendiary.”

Not up for debate, not worthy of scientific thought, just incendiary… to state a basic fact that everyone agreed on until a couple years ago.

Click here for the full story.

Boy suspended from school after going target shooting with his mom

This story starts out almost too wholesome to believe.

On a crisp afternoon in the forests of northern Colorado, a mother and her son Nate bond over some target practice. They shoot cans with rifles and handguns.

I bet mom even ruffled Nate’s shaggy hair as she gazed proudly at what a fine young man he was growing into. It’s straight out of the Andy Griffith Show.

And imagine a teen that isn’t too embarrassed to post a video on social media of him spending the afternoon hanging out with mom.

But because that video included guns, someone called the police to report that Nate was a threat to the school.

The police investigated, rolled their eyes, and said there was nothing illegal about target shooting and posting the video online.

But then the family got a phone call from the school, telling them Nate couldn’t return to school until after a “threat assessment hearing.”

Click here for the full story.

Source

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The Press Fans Overblown Fears About Diet Soda—Again

“I have never seen a thin person drinking Diet Coke,” tweeted Donald Trump, himself a frequent consumer of diet soda, back in 2012. Besides being an amusing self-own, Trump’s comment helps explain the trouble with most research on diet drinks—including a new study that’s been making the media rounds this week. 

It doesn’t matter if it’s sugary or diet: New study links all soda to an early death,” reported The Washington Post on September 4. It was one of many similar headlines. The implication of all of them was clear: Zero-calorie cola is a big fat lie, and if you don’t ditch it now you’re staring down a premature grave.

But let’s back up. Here’s what the paper in JAMA Internal Medicine actually found about drinks containing artificial sweeteners: People who consumed two or more per day were slightly more likely than those who abstained from all soda to die from diseases related to circulatory problems. (Consuming one or more sugar-sweetened soda per day, meanwhile, was associated with increase risk of dying from liver, appendix, pancreas, and intestinal diseases.) Whether these circulatory problems are directly related to diet soda is unknown—and there are good reasons to suspect they are not.

“Researchers cautioned that elevated soft-drink consumption may be a marker for an overall unhealthy lifestyle,” the Post points out. That is, people who consume sodas daily may also be more likely to eat out at restaurants, consume processed snacks, or engage in other dietary habits that up their disease risk.

Alternately, people who don’t drink soda at all may be more likely to engage in some behaviors—drinking more water, say, or consuming other nutritious beverages—that accrue them disease-protective benefits.

And while all sorts of people drink diet soda, it tends to be especially popular among people actively trying to lose weight and/or to give up a non-diet soda habit. Which is to say that diet drink consumers could (as that Trump tweet suggests) be heavier to begin with, or could share some other quality (such as previously high consumption of sugary drinks) that sets them up for future health problems.

The scientist behind this study tried to account for some confounding factors, such as smoking and obesity. But accounting for all lifestyle differences is impossible. Here’s what the lead researcher, Neil Murphy, told the Post:

We recognize that a possible explanation for the positive associations found for artificially sweetened soft drinks is that participants who were already at greater health risk (those who were overweight or obese; those with prediabetes) may have switched to artificially sweetened soft drinks to manage their calorie and sugar intake.

Even the notoriously pro-nanny-state Center for Science in the Public Interest urged caution about the latest research. “This new European study is somewhat inconsistent with earlier findings,” the group’s director of nutrition told the Post.

That’s true: Several meta-analyses last year found no association between drinking diet soda and weight gain or increased body mass index. Those studies also found no association between aspartame (the most common artificial sweetener) and negative effects on heart-disease risk factors, fat levels, or metabolic issues.


FREE MINDS 

Brothel lawyer fights for sex worker rights. “You can say, ‘No sex without a condom.’ You can say, ‘No sex until we’re married.’ But you can’t say, ‘No sex until you pay me’? And that feels like it really undermines what consent means,” Katherine Sears told the Des Moines TV station KCCI. 

“Sears is so passionate about the decriminalization of prostitution, she is willing to take prostitution cases on pro bono,” reports KCCI in its profile of the lawyer, mother, and part-time Nevada brothel worker.

“Their bodies belong to them,” Sears told the station, “and we have absolutely no reason to be telling them that you cannot condition your consent this way.” 


FREE MARKETS

Medicare for All—or something else? That’s become a major question for 2020 presidential candidates. “Given the persistent political and policy challenges to passing and implementing a single-payer system along the lines envisioned by Sen. Bernie Sanders (I–Vt.) and other Medicare-for-All boosters,” writes Peter Suderman, “the answer is probably going to be ‘something else.'” So what does “something else” mean? 

The most likely answer is a “public plan” or “public option”—that is, a government-run health insurance plan that would exist alongside today’s insurance options, supplementing employer coverage, Obamacare, Medicare, and Medicaid without fully displacing them. Indeed, should Democrats win both Congress and the White House, the proposal of a public option is, at this point, far more likely than a big push for Sanders-style Medicare for All….

A public option would probably be less radical, less disruptive, and, on paper, less expensive for the government than Sanders’ Medicare for All proposal. Yet it would still pose real challenges in terms of cost and political viability.


QUICK HITS

  • More evidence that the “vaping linked illness” has naught to do with vaping per se. Instead it appears to be tied to black market cannabis vape pens containing high levels of Vitamin E
  • Arizona, Kansas, Nevada, and South Carolina “will cancel their 2020 GOP presidential primaries and caucuses…in a move which will make it much more difficult for Donald Trump’s Republican critics to challenge him,” reports The Daily Beast
  • Protecting and serving: 

  • Twenty-two women are suing the folks behind “Girls Do Porn” for allegedly deceptive and fraudulent practices.
  • “BangBros has emerged as the folk hero of the porn industry with its most recent acquisition: PornWikiLeaks,” reports AV Club. “The adult-themed production company bought out the doxxing site, which housed over 15,000 porn stars’ personal information,” and set the servers on fire.
  • “Mortality from deaths of despair far surpasses anything seen in America since the dawn of the 20th century,” according to the Senate’s Joint Economic Committee. However:

At the same time, a long-term perspective reveals that while drug-related deaths have been rising since the late 1950s, the current increase in suicide and alcohol-related deaths began only around 2000, as the opioid crisis ramped up. Suicide and alcohol-related mortality trends track each other well over the past 45 years, and after accounting for the changing age distribution of the US, combined deaths from the two causes were as common in the mid-1970s as today.

  • A Handmaid’s Tale sequel is coming to Hulu.
  • Women can legally go topless now in Colorado Springs, just like men.
  • In case you’re into this sort of thing:

from Latest – Reason.com https://ift.tt/2Lyt4MH
via IFTTT

The Press Fans Overblown Fears About Diet Soda—Again

“I have never seen a thin person drinking Diet Coke,” tweeted Donald Trump, himself a frequent consumer of diet soda, back in 2012. Besides being an amusing self-own, Trump’s comment helps explain the trouble with most research on diet drinks—including a new study that’s been making the media rounds this week. 

It doesn’t matter if it’s sugary or diet: New study links all soda to an early death,” reported The Washington Post on September 4. It was one of many similar headlines. The implication of all of them was clear: Zero-calorie cola is a big fat lie, and if you don’t ditch it now you’re staring down a premature grave.

But let’s back up. Here’s what the paper in JAMA Internal Medicine actually found about drinks containing artificial sweeteners: People who consumed two or more per day were slightly more likely than those who abstained from all soda to die from diseases related to circulatory problems. (Consuming one or more sugar-sweetened soda per day, meanwhile, was associated with increase risk of dying from liver, appendix, pancreas, and intestinal diseases.) Whether these circulatory problems are directly related to diet soda is unknown—and there are good reasons to suspect they are not.

“Researchers cautioned that elevated soft-drink consumption may be a marker for an overall unhealthy lifestyle,” the Post points out. That is, people who consume sodas daily may also be more likely to eat out at restaurants, consume processed snacks, or engage in other dietary habits that up their disease risk.

Alternately, people who don’t drink soda at all may be more likely to engage in some behaviors—drinking more water, say, or consuming other nutritious beverages—that accrue them disease-protective benefits.

And while all sorts of people drink diet soda, it tends to be especially popular among people actively trying to lose weight and/or to give up a non-diet soda habit. Which is to say that diet drink consumers could (as that Trump tweet suggests) be heavier to begin with, or could share some other quality (such as previously high consumption of sugary drinks) that sets them up for future health problems.

The scientist behind this study tried to account for some confounding factors, such as smoking and obesity. But accounting for all lifestyle differences is impossible. Here’s what the lead researcher, Neil Murphy, told the Post:

We recognize that a possible explanation for the positive associations found for artificially sweetened soft drinks is that participants who were already at greater health risk (those who were overweight or obese; those with prediabetes) may have switched to artificially sweetened soft drinks to manage their calorie and sugar intake.

Even the notoriously pro-nanny-state Center for Science in the Public Interest urged caution about the latest research. “This new European study is somewhat inconsistent with earlier findings,” the group’s director of nutrition told the Post.

That’s true: Several meta-analyses last year found no association between drinking diet soda and weight gain or increased body mass index. Those studies also found no association between aspartame (the most common artificial sweetener) and negative effects on heart-disease risk factors, fat levels, or metabolic issues.


FREE MINDS 

Brothel lawyer fights for sex worker rights. “You can say, ‘No sex without a condom.’ You can say, ‘No sex until we’re married.’ But you can’t say, ‘No sex until you pay me’? And that feels like it really undermines what consent means,” Katherine Sears told the Des Moines TV station KCCI. 

“Sears is so passionate about the decriminalization of prostitution, she is willing to take prostitution cases on pro bono,” reports KCCI in its profile of the lawyer, mother, and part-time Nevada brothel worker.

“Their bodies belong to them,” Sears told the station, “and we have absolutely no reason to be telling them that you cannot condition your consent this way.” 


FREE MARKETS

Medicare for All—or something else? That’s become a major question for 2020 presidential candidates. “Given the persistent political and policy challenges to passing and implementing a single-payer system along the lines envisioned by Sen. Bernie Sanders (I–Vt.) and other Medicare-for-All boosters,” writes Peter Suderman, “the answer is probably going to be ‘something else.'” So what does “something else” mean? 

The most likely answer is a “public plan” or “public option”—that is, a government-run health insurance plan that would exist alongside today’s insurance options, supplementing employer coverage, Obamacare, Medicare, and Medicaid without fully displacing them. Indeed, should Democrats win both Congress and the White House, the proposal of a public option is, at this point, far more likely than a big push for Sanders-style Medicare for All….

A public option would probably be less radical, less disruptive, and, on paper, less expensive for the government than Sanders’ Medicare for All proposal. Yet it would still pose real challenges in terms of cost and political viability.


QUICK HITS

  • More evidence that the “vaping linked illness” has naught to do with vaping per se. Instead it appears to be tied to black market cannabis vape pens containing high levels of Vitamin E
  • Arizona, Kansas, Nevada, and South Carolina “will cancel their 2020 GOP presidential primaries and caucuses…in a move which will make it much more difficult for Donald Trump’s Republican critics to challenge him,” reports The Daily Beast
  • Protecting and serving: 

  • Twenty-two women are suing the folks behind “Girls Do Porn” for allegedly deceptive and fraudulent practices.
  • “BangBros has emerged as the folk hero of the porn industry with its most recent acquisition: PornWikiLeaks,” reports AV Club. “The adult-themed production company bought out the doxxing site, which housed over 15,000 porn stars’ personal information,” and set the servers on fire.
  • “Mortality from deaths of despair far surpasses anything seen in America since the dawn of the 20th century,” according to the Senate’s Joint Economic Committee. However:

At the same time, a long-term perspective reveals that while drug-related deaths have been rising since the late 1950s, the current increase in suicide and alcohol-related deaths began only around 2000, as the opioid crisis ramped up. Suicide and alcohol-related mortality trends track each other well over the past 45 years, and after accounting for the changing age distribution of the US, combined deaths from the two causes were as common in the mid-1970s as today.

  • A Handmaid’s Tale sequel is coming to Hulu.
  • Women can legally go topless now in Colorado Springs, just like men.
  • In case you’re into this sort of thing:

from Latest – Reason.com https://ift.tt/2Lyt4MH
via IFTTT

Stocks Shrug Off Poor Payrolls Print, Dollar & Bond Yields Plunge

Bad news is good news… for bonds, no news for stocks, and bad news for the dollar…

Treasury yields… down

Source: Bloomberg

Dollar… down

Source: Bloomberg

Stocks… not down

Source: Bloomberg

Which one will end up right at the close?

via ZeroHedge News https://ift.tt/2HQdhrT Tyler Durden