Janet Yellen Trolls America's Poor: Tells Them It Is Important To Get Rich

Remember when over the weekend we reported, that “America’s Poor Have Never Been Deeper In Debt“, showing how this tragic development took place over the past few years, accelerating almost exponentially into the New Normal…

 

… and in its proper context, using one of our favorite charts, showing that while the rich hold assets, the poor are merely drowning in ever more debt:

 

Well, Janet Yellen has a message for America’s poor.

The day after tomorrow’s much anticipated FOMC meeting which will surely make the richest 1% in the nation even richer, the Fed chairman will address everyone else, as follows:

Speech–Chair Janet L. Yellen

The Importance of Asset Building for Low and Middle Income Households

At the Corporation for Enterprise Development’s 2014 Assets Learning Conference, Washington, D.C. (via prerecorded video)

8:45 a.m. ET

Not surprisingly “everyone else”, namely America’s low and middle income households, aren’t even worth a live appearance, hence the “prerecorded video.”

But the punchline is the actual message, in which Janet Yellen tells those mired in debt to build more assets.

In other words, the Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as “the middle.”

Her message? It is important to build assets, or said otherwise…  get rich.




via Zero Hedge http://ift.tt/1mba3jQ Tyler Durden

Janet Yellen Trolls America’s Poor: Tells Them It Is Important To Get Rich

Remember when over the weekend we reported, that “America’s Poor Have Never Been Deeper In Debt“, showing how this tragic development took place over the past few years, accelerating almost exponentially into the New Normal…

 

… and in its proper context, using one of our favorite charts, showing that while the rich hold assets, the poor are merely drowning in ever more debt:

 

Well, Janet Yellen has a message for America’s poor.

The day after tomorrow’s much anticipated FOMC meeting which will surely make the richest 1% in the nation even richer, the Fed chairman will address everyone else, as follows:

Speech–Chair Janet L. Yellen

The Importance of Asset Building for Low and Middle Income Households

At the Corporation for Enterprise Development’s 2014 Assets Learning Conference, Washington, D.C. (via prerecorded video)

8:45 a.m. ET

Not surprisingly “everyone else”, namely America’s low and middle income households, aren’t even worth a live appearance, hence the “prerecorded video.”

But the punchline is the actual message, in which Janet Yellen tells those mired in debt to build more assets.

In other words, the Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as “the middle.”

Her message? It is important to build assets, or said otherwise…  get rich.




via Zero Hedge http://ift.tt/1mba3jQ Tyler Durden

'Janus' Yellen And The Great Transition From Risk-On To Risk-Off

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

In ancient Roman religion and myth, Janus is the god of transitions–beginnings and endings of conflict, war and peace, journeys, trades and eras. Janus has two faces, as befits a god that looks both to the future and to the past.

In our era of omnipotent central banks worshipped by the Status Quo, we have a goddess of financial transitions–Janus Yellen, the two-faced chair/deity of the Federal Reserve–to usher in the Great Transition from risk-on to risk-off.

What is risk-on? Speculative bets directly enabled by central bank issued free money for financiers–also known by the bland technocrat perception management labels stimulus and quantitative easing (QE).
 
The primary risk-on policies are:
 
1. ZIRP–zero interest rate policy. This enables financiers (but not J.Q. Citizen) to borrow money for next to nothing and then use this free money to buy assets that pay dividends or interest.
 
This is effectively a gift to banks and financiers. The goal is straightforward: transfer great wealth from the peasants who once earned interest on their savings to the banks, who have rebuilt their bad-bet-shattered balance sheets on the backs of tax donkeys and savers.
 
2. Asset purchases. The Fed has bought almost $4 trillion of Treasury bonds and mortgages from primary dealers (banks) and other financial institutions. This is effectively a transfer of cash directly into the financial system.
 
Those closest to the Fed money-spigot benefit directly from asset purchases (a.k.a. quantitative easing). Those far from the spigot (the 99.9%) get nothing but slightly lower interest on their crushing debt.
 
Those with low/no debt have lost hundreds of billions in interest that has been transferred to the banks by ZIRP and QE, which actively suppresses interest rates.
 
3. Liquidity. This simply means the Fed will create as much money as is needed to meet the borrowing needs of the financial system. This unlimited liquidity is offered not just to U.S. banks, but to the entire global banking system. The Fed doesn't just bail out U.S. speculators–it bails out speculators worldwide.
 
In other words, the Fed deities are lavishly generous to financiers everywhere.
 
But all these risk-on policies have created extremes of speculative bets, which have generated corresponding extremes in systemic risk. Those who have skimmed profits from risk-on speculation with borrowed money and leveraged bets need to unwind/exit their bets to book their gains.
 
This unwinding of speculative excesses is risk-off.
 
It falls to Janus Yellen to oversee this transition from roughly 20 years of risk-on to risk-off. The trick will be to unwind all the debt and leverage without collapsing the global speculative house of cards.
 
Janus Yellen's job is to manage the transition such that banking sector profits are maintained.One way to do this is to raise interest rates incrementally.
 
Ilargi at theautomaticearth.com makes a compelling case for the Fed raising interest rates sooner than most believe possible as the only means left to maintain banking-sector profits: The Fed Has A Big Surprise Waiting For You.
 
Though we can be confident that Janus Yellen's face looking back in time sees the Fed's unprecedented efforts to prop up a failed, broken financial system as a success, to the rest of us, the past is easily visible: central banks did not fix what is broken in the financial system; they simply papered over the sources of speculative instability with multiple layers of additional bureaucracy, ZIRP, QE and unlimited liquidity. As a result, the threat of speculative instability was only deferred, not eliminated.
 
The future is much less clear. As Janus Yellen looks ahead, she finds no real historic parallels for the extremes of risk-on debt, leverage and speculation that unprecedented central bank intervention have conjured up.
 
She also finds no recent precedent for the gargantuan expansion of financial claims on real wealth that dwarf the actual expansion of real wealth since the 2008-09 Global Financial Meltdown: energy extracted, soybeans harvested, industrial equipment manufactured, etc.
 
Multiplying the financial claims on real wealth by creating money and selling Treasury bonds that are claims on future wealth does not expand real wealth. This is the foundational falsity of risk-on monetary easing and the speculation it fuels: expanding claims on real wealth does not increase real wealth.
 
The idea that expanding financial claims on wealth is wealth is entirely illusory, and this is why risk-on is a self-liquidating dynamic: as everyone holding a claim tries to cash in their illusory gains, the risk-on trade implodes.
 
Janus Yellen is trying to engineer an impossible "solution" to this destabilizing dynamic: gently transition risk-on to risk-off so imperceptibly that the market for phantom assets will magically absorb all the selling.
 
But this assumes there will be buyers ready to bid up the market value of these phantom assets as the smart money distributes/sells. And that is of course the dynamic of bubbles throughout human history: there are ready buyers right up to the point that prices start dropping sharply. Then the bid vanishes as the pool of greater fools has been drained and there are no buyers, only sellers.
 
Perhaps what Janus Yellen's future-facing eyes see is a future in which central banks are forced to become the buyers of last resort not just of trillions of dollars in home mortgages and sovereign bonds, but every other asset as well: real estate, corporate junk bonds, swampland, the debt of bankrupt cities–everything.
 
This is nothing but another expansion of financial claims, masked by the apparition of phantom assets on the central bank balance sheets. Buying up phantom assets does not transform them into real wealth. Regardless of how Janus Yellen tries to sell the idea as the miraculous "fix" to the systemic bubble in claims the central banks have inflated, it will fail just as predictably as her plan to defuse the risk-on trade while maintaining the inflated value of the phantom assets the speculative frenzy has created out of nothing.
 

The end of risk-on cannot be prettily managed. If Janus Yellen had looked far enough back in history, she would already know that.




via Zero Hedge http://ift.tt/XvFb26 Tyler Durden

‘Janus’ Yellen And The Great Transition From Risk-On To Risk-Off

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

In ancient Roman religion and myth, Janus is the god of transitions–beginnings and endings of conflict, war and peace, journeys, trades and eras. Janus has two faces, as befits a god that looks both to the future and to the past.

In our era of omnipotent central banks worshipped by the Status Quo, we have a goddess of financial transitions–Janus Yellen, the two-faced chair/deity of the Federal Reserve–to usher in the Great Transition from risk-on to risk-off.

What is risk-on? Speculative bets directly enabled by central bank issued free money for financiers–also known by the bland technocrat perception management labels stimulus and quantitative easing (QE).
 
The primary risk-on policies are:
 
1. ZIRP–zero interest rate policy. This enables financiers (but not J.Q. Citizen) to borrow money for next to nothing and then use this free money to buy assets that pay dividends or interest.
 
This is effectively a gift to banks and financiers. The goal is straightforward: transfer great wealth from the peasants who once earned interest on their savings to the banks, who have rebuilt their bad-bet-shattered balance sheets on the backs of tax donkeys and savers.
 
2. Asset purchases. The Fed has bought almost $4 trillion of Treasury bonds and mortgages from primary dealers (banks) and other financial institutions. This is effectively a transfer of cash directly into the financial system.
 
Those closest to the Fed money-spigot benefit directly from asset purchases (a.k.a. quantitative easing). Those far from the spigot (the 99.9%) get nothing but slightly lower interest on their crushing debt.
 
Those with low/no debt have lost hundreds of billions in interest that has been transferred to the banks by ZIRP and QE, which actively suppresses interest rates.
 
3. Liquidity. This simply means the Fed will create as much money as is needed to meet the borrowing needs of the financial system. This unlimited liquidity is offered not just to U.S. banks, but to the entire global banking system. The Fed doesn't just bail out U.S. speculators–it bails out speculators worldwide.
 
In other words, the Fed deities are lavishly generous to financiers everywhere.
 
But all these risk-on policies have created extremes of speculative bets, which have generated corresponding extremes in systemic risk. Those who have skimmed profits from risk-on speculation with borrowed money and leveraged bets need to unwind/exit their bets to book their gains.
 
This unwinding of speculative excesses is risk-off.
 
It falls to Janus Yellen to oversee this transition from roughly 20 years of risk-on to risk-off. The trick will be to unwind all the debt and leverage without collapsing the global speculative house of cards.
 
Janus Yellen's job is to manage the transition such that banking sector profits are maintained.One way to do this is to raise interest rates incrementally.
 
Ilargi at theautomaticearth.com makes a compelling case for the Fed raising interest rates sooner than most believe possible as the only means left to maintain banking-sector profits: The Fed Has A Big Surprise Waiting For You.
 
Though we can be confident that Janus Yellen's face looking back in time sees the Fed's unprecedented efforts to prop up a failed, broken financial system as a success, to the rest of us, the past is easily visible: central banks did not fix what is broken in the financial system; they simply papered over the sources of speculative instability with multiple layers of additional bureaucracy, ZIRP, QE and unlimited liquidity. As a result, the threat of speculative instability was only deferred, not eliminated.
 
The future is much less clear. As Janus Yellen looks ahead, she finds no real historic parallels for the extremes of risk-on debt, leverage and speculation that unprecedented central bank intervention have conjured up.
 
She also finds no recent precedent for the gargantuan expansion of financial claims on real wealth that dwarf the actual expansion of real wealth since the 2008-09 Global Financial Meltdown: energy extracted, soybeans harvested, industrial equipment manufactured, etc.
 
Multiplying the financial claims on real wealth by creating money and selling Treasury bonds that are claims on future wealth does not expand real wealth. This is the foundational falsity of risk-on monetary easing and the speculation it fuels: expanding claims on real wealth does not increase real wealth.
 
The idea that expanding financial claims on wealth is wealth is entirely illusory, and this is why risk-on is a self-liquidating dynamic: as everyone holding a claim tries to cash in their illusory gains, the risk-on trade implodes.
 
Janus Yellen is trying to engineer an impossible "solution" to this destabilizing dynamic: gently transition risk-on to risk-off so imperceptibly that the market for phantom assets will magically absorb all the selling.
 
But this assumes there will be buyers ready to bid up the market value of these phantom assets as the smart money distributes/sells. And that is of course the dynamic of bubbles throughout human history: there are ready buyers right up to the point that prices start dropping sharply. Then the bid vanishes as the pool of greater fools has been drained and there are no buyers, only sellers.
 
Perhaps what Janus Yellen's future-facing eyes see is a future in which central banks are forced to become the buyers of last resort not just of trillions of dollars in home mortgages and sovereign bonds, but every other asset as well: real estate, corporate junk bonds, swampland, the debt of bankrupt cities–everything.
 
This is nothing but another expansion of financial claims, masked by the apparition of phantom assets on the central bank balance sheets. Buying up phantom assets does not transform them into real wealth. Regardless of how Janus Yellen tries to sell the idea as the miraculous "fix" to the systemic bubble in claims the central banks have inflated, it will fail just as predictably as her plan to defuse the risk-on trade while maintaining the inflated value of the phantom assets the speculative frenzy has created out of nothing.
 

The end of risk-on cannot be prettily managed. If Janus Yellen had looked far enough back in history, she would already know that.




via Zero Hedge http://ift.tt/XvFb26 Tyler Durden

Stocks Go Vertical (Again), Just Because

In a desperate attempt to keep AAPL above $100 again, US equity markets are deja-vu-ing yesterday afternoon’s sudden (and newsless) vertical ramp to run stops this morning. As Rule 575 hits, it appears the new algo plan is just run stops wherever they may hide, because nothing says buying-panic (and selling VIX panic) like the uncertainty of a Fed meeting, Scottish vote, and Alibaba disruptions…

Ramp!

 

Driven by VIX selling (to some extent)

 

Playing catch up to AUDJPY…

 

as “most shorted” stocks are squeezed once again…

 

It appears the goal was to run to Friday’s closing VWAP…

 

Sending the S&P to run the stops from yesterday’s highs…

 

AAPL $100 saved…

 

 

Charts: Bloomberg




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What A Difference Two Weeks Makes: Spot The Cognitive Dissonance In These Two Headlines

What a difference two weeks makes: On September 3, US “manufacturing” according to Bloomberg, grew at the fastest pace in three years

 

Fast forward to yesterday,when somehow – in the face of allegedly soaring “manufacturing” – Industrial output dropped.

 

It is almost as if in the New Normal i) industrial output is no longer considered manufacturing and ii) when respondents are asked to share their outlook on the economy they have a, seasonally-adjusted of course, bullish bias.

Who would have thunk it?

But hey, as long as those PMIs and other now laughable surveys keep soaring, who cares about the actual “data.” All that matters is how people feel, and as such the time has clearly come to emotionally-adjust GDP as well.

h/t @GreekFire23




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Scotland Prepares For Bank Runs; 'Quietly' Sends Millions Of Banknotes North

As the Scotish independence vote draws near and remains too close to call, some analysts are suggesting Plan B for Scotland may be to choose to opportunistically default. This has done nothing to calm concerns of the aftermath of a “yes” vote – despite US asset managers proclaiming it irrelevant. Nowhere is that more clear than, as The Independent reports, Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday’s independence referendum, it has emerged. Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, but the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote.

As The Independent reports,

Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday’s independence referendum, it has emerged.

 

Sources told The Independent the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote. There have been some suggestions that people will want to move their money to English banks in the event of an independence vote.

 

Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, stressing that there was no need because the Bank of England has pledged to stand behind all accounts for at least 18 months in the event of a “yes” vote.

 

However, concerns about how safe is their cash still linger.

 

 

Sources at major banks said they had been issuing clear instructions to their Scottish branches to reassure customers there was no reason to panic.

 

One said: “We have seen a big rise in customers coming in and asking us what would happen, but there is no sign of any significant flow of deposits from north to south.”

 

Figures from the Bank of England show the number of notes in circulation has been creeping up steadily over the last year. This month there are 62.3 billion notes in the country, compared with 59.8 billion a year ago.

 

A source at one bank said: “This forms part of our contingency planning. We are, of course, monitoring the situation very closely from hour to hour.”

*  *  *

As Bloomberg reports, Salmond May Favor Opportunistic Default

Adopting sterling informally while reneging on debt might be Scottish govt’s plan B, Angus Armstrong, director of macroeconomics at Niesr, says in statement, citing comments from Scottish First Minister Salmond.

 

If Scotland refused to accept fair share of existing U.K. debt, it might be interpreted as a default, even if technically it wouldn’t be failure to pay

 

If Scotland were to not pay its share of debt, junk status is probable; it’s unlikely to be excluded from markets for the avg time of ~10 years, but there’s “no free lunch” from opportunistic default

 

Biggest hurdle for any Scottish bid for EU entry would be obtaining Germany’s “yes”

 

If Scotland sets precedent for EU membership after secession, despite debt repudiation, Germany would be exposed to other post-secession insolvencies

 

If Scottish govt chose to combine “sterlingisation” with reneging on fair share of existing U.K. debt, it would boost fragility of exchange-rate arrangement; Niesr economists expect currency arrangement would fail and Scotland forced to introduce its own new currency within 1 year.

*  *  *

Yet, American investors should not worry for some talking-head yesterday on CNBC proclaimed Scotland irrelevant (maybe he should tell the $30 billion in outflows that)…




via Zero Hedge http://ift.tt/XbTA31 Tyler Durden

Scotland Prepares For Bank Runs; ‘Quietly’ Sends Millions Of Banknotes North

As the Scotish independence vote draws near and remains too close to call, some analysts are suggesting Plan B for Scotland may be to choose to opportunistically default. This has done nothing to calm concerns of the aftermath of a “yes” vote – despite US asset managers proclaiming it irrelevant. Nowhere is that more clear than, as The Independent reports, Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday’s independence referendum, it has emerged. Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, but the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote.

As The Independent reports,

Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday’s independence referendum, it has emerged.

 

Sources told The Independent the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote. There have been some suggestions that people will want to move their money to English banks in the event of an independence vote.

 

Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, stressing that there was no need because the Bank of England has pledged to stand behind all accounts for at least 18 months in the event of a “yes” vote.

 

However, concerns about how safe is their cash still linger.

 

 

Sources at major banks said they had been issuing clear instructions to their Scottish branches to reassure customers there was no reason to panic.

 

One said: “We have seen a big rise in customers coming in and asking us what would happen, but there is no sign of any significant flow of deposits from north to south.”

 

Figures from the Bank of England show the number of notes in circulation has been creeping up steadily over the last year. This month there are 62.3 billion notes in the country, compared with 59.8 billion a year ago.

 

A source at one bank said: “This forms part of our contingency planning. We are, of course, monitoring the situation very closely from hour to hour.”

*  *  *

As Bloomberg reports, Salmond May Favor Opportunistic Default

Adopting sterling informally while reneging on debt might be Scottish govt’s plan B, Angus Armstrong, director of macroeconomics at Niesr, says in statement, citing comments from Scottish First Minister Salmond.

 

If Scotland refused to accept fair share of existing U.K. debt, it might be interpreted as a default, even if technically it wouldn’t be failure to pay

 

If Scotland were to not pay its share of debt, junk status is probable; it’s unlikely to be excluded from markets for the avg time of ~10 years, but there’s “no free lunch” from opportunistic default

 

Biggest hurdle for any Scottish bid for EU entry would be obtaining Germany’s “yes”

 

If Scotland sets precedent for EU membership after secession, despite debt repudiation, Germany would be exposed to other post-secession insolvencies

 

If Scottish govt chose to combine “sterlingisation” with reneging on fair share of existing U.K. debt, it would boost fragility of exchange-rate arrangement; Niesr economists expect currency arrangement would fail and Scotland forced to introduce its own new currency within 1 year.

*  *  *

Yet, American investors should not worry for some talking-head yesterday on CNBC proclaimed Scotland irrelevant (maybe he should tell the $30 billion in outflows that)…




via Zero Hedge http://ift.tt/XbTA31 Tyler Durden

Producer Price Increase Lowest In 2014 As Energy Slides

PPI Final Demand was unchanged in August (+0.0% against expectations of +0.0%) making it lowest monthly gain since December 2013 (after revisions moved May’s data). Across the board producer prices rose (or didn’t) as expected with Final Demand YoY +1.8%. Energy prices fell 1.5% MoM and was the biggest driver of PPI’s relative weakness but notably prices for finished goods fell 0.3% – the biggest drop since August 2013.

PPI Final Demand MoM lowest in a year

 

Another way of seeing the drop in wholesale prices:

Most of the August decrease can be traced to the index for finished consumer energy goods, which fell 1.4%.

Within finished goods, falling prices for gasoline, residential natural gas, eggs for fresh use, home heating oil, pork, and fresh vegetables (except potatoes) outweighed rising prices for pharmaceutical preparations, potatoes, and processed fruits and vegetables.

And from the report:

Final demand services: The final demand services index climbed 0.3 percent in August after inching up 0.1 percent in July. Eighty percent of the August advance can be traced to a 0.3-percent rise in prices for final demand services less trade, transportation, and warehousing. The index for final demand transportation and warehousing services also increased 0.3 percent. Margins for final demand trade services were unchanged. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Accounting for over 20 percent of the August advance in the index for final demand services, prices for loan services (partial) increased 1.7 percent. The indexes for traveler accommodation services; health, beauty, and optical goods retailing; hospital outpatient care; securities brokerage, dealing, and investment advice; and airline passenger services also moved higher. In contrast, prices for services related to securities brokerage and dealing fell 4.5 percent in August. The indexes for food and alcohol retailing and for truck transportation of freight also decreased. (See table 4.)

Final demand goods: The index for final demand goods moved down 0.3 percent in August, the largest decrease since a 0.7-percent drop in April 2013. Over 80 percent of the August decline is attributable to prices for final demand energy, which fell 1.5 percent. The index for final demand foods decreased 0.5 percent. Prices for final demand goods less foods and energy were unchanged.

Product detail: Over a quarter of the decline in prices for final demand goods can be attributed to the gasoline index, which fell 1.4 percent. Prices for utility natural gas, chicken eggs, diesel fuel, electric power, and raw cotton also moved lower. Conversely, the index for potatoes surged 28.0 percent. Prices for pharmaceutical preparations and jet fuel also advanced.

Special grouping, Final demand less foods, energy, and trade: The index for final demand less foods, energy, and trade services advanced 0.2 percent in August, the third consecutive 0.2-percent increase. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 1.8 percent. (The index for final demand less foods, energy, and trade services represents about two-thirds of final demand.)

Special grouping, Finished goods: Prices for finished goods fell 0.3 percent in August, the largest decrease since a 0.6-percent decline in April 2013. (The finished goods index represents about twothirds of final demand goods, through the exclusion of the weight for government purchases and exports. The finished goods index represents about one-quarter of overall final demand.) Most of the August decrease can be traced to the index for finished consumer energy goods, which fell 1.4 percent. Prices for finished consumer foods moved down 0.3 percent. In contrast, the index for finished goods less foods and energy edged up 0.1 percent. Within finished goods, falling prices for gasoline, residential natural gas, eggs for fresh use, home heating oil, pork, and fresh vegetables (except potatoes) outweighed rising prices for pharmaceutical preparations, potatoes, and processed fruits and vegetables




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Obama To Send 3,000 Ebola-Fighting Boots-On-The-Ground To Africa; CDC Warns America "Now Is The Time To Prepare"

On the heels of yesterday’s almost unbelievable forecasts of the exponential rise in Ebola case counts – and warnings of a 20% chance of Ebola reaching the USA by year-end, WHO officials have confirmed that their previous forecasts of 20,000 cases “does not seem like a lot today.” This has, according to Reuters, the United States announced on Tuesday that it would send 3,000 troops to help tackle the Ebola outbreak as part of a ramped-up response including a major deployment in Liberia, the country where the epidemic is spiralling fastest out of control. Perhaps even more worrisome – for those who explained how ‘contained’ Ebola was – is the CDC’s release of an Ebola checklist warning American healthcare workers “now is the time to prepare.”

WHO warns the scale of the epidemic is unprecedented…

The unprecedented Ebola outbreak in West Africa requires a $1 billion response to keep its spread within the “tens of thousands” of cases, United Nations officials said on Tuesday.

 

The virus has killed 2,461 people, half of the 4,985 infected by the virus, and the toll has doubled in the last month, World Health Organization Assistant Director General Bruce Aylward said.

 

“Quite frankly, ladies and gentlemen, this health crisis we’re facing is unparalleled in modern times,” Aylward told a news conference in Geneva. “We don’t know where the numbers are going on this.”

 

He said the WHO’s previous forecast that the number of cases could reach 20,000 no longer seemed a lot, but the number could be kept within the tens of thousands with “a much faster reponse”.

As Reuters reports, Obama will unveil plans to send 3,000 troops to Africa today,

The president will visit the U.S. Centers for Disease Control in Atlanta on Tuesday to show his commitment. The stepped-up effort he will announce is to include 3,000 military forces and a joint forces command center in Monrovia, capital of Liberia, to coordinate efforts with the U.S. government and other international partners.

 

The U.S. response to the crisis, to be formally unveiled later by President Barack Obama, includes plans to build 17 treatment centers, train thousands of healthcare workers and establish a military control center for coordination, U.S. officials told reporters.

 

 

Liberia, a nation founded by descendants of freed American slaves, appealed for U.S. help last week.

 

“Highly infectious people are forced to return home, only to infect others and continue the spread of this deadly virus. All for a lack of international response,” she said.

 

 

The plan will “ensure that the entire international response effort is more effective and helps to … turn the tide in this crisis,” a senior administration official told reporters on Monday, ahead of the president’s trip.

 

“The significant expansion that the president will detail … really represents … areas where the U.S. military will bring unique capabilities that we believe will improve the effectiveness of the entire global response,” he said.

 

 

Obama’s administration has requested an additional $88 million from Congress to fight Ebola, including $58 million to speed production of the ZMapp experimental antiviral drug and two Ebola vaccine candidates.

 

Officials said the Department of Defense had requested to reallocate $500 million in funds from fiscal 2014 to help cover the costs of the humanitarian mission.

And then The Washingotn Examiner reports,

The Centers for Disease Control and Prevention, warning hospitals and doctors that “now is the time to prepare,” has issued a six-page Ebola “checklist” to help healthcare workers quickly determine if patients are infected.

 

 

“Every hospital should ensure that it can detect a patient with Ebola, protect healthcare workers so they can safely care for the patient, and respond in a coordinated fashion,” warns the CDC.

 

“While we are not aware of any domestic Ebola Virus Disease cases (other than two American citizens who were medically evacuated to the United States), now is the time to prepare, as it is possible that individuals with EVD in West Africa may travel to the United States, exhibit signs and symptoms of EVD, and present to facilities,” it adds.

*  *  *
Contained?




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