Buffett’s Favorite Market Indicator Is Flashing Warning Signs

By Rob Williams  Re-Blogged From Newsmax

Warren Buffett’s favorite market indicator says stocks are in trouble.

The billionaire chief executive of Berkshire Hathaway once wrote that the “single best” way to see if the market is too expensive by comparing the total value of all publicly traded stocks with the total size of the economy.

It’s like determining the value of a car by the horsepower of its engine.

Image: Money: Buffett's Favorite Market Indicator Is Flashing Warning Signs
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Moody’s: State Pension Liabilities Hit $1.3 Trillion

From Thomson Reuters – Re-Blogged From Newsmax

U.S. state unfunded pension liabilities hit $1.3 trillion in fiscal 2016, a $56 billion or 4.5 percent increase over the previous fiscal year, Moody’s Investors Service reported.

 The credit rating agency attributed the higher adjusted net pension liability for the 50 states to underperforming investment returns, low interest rates and insufficient contributions to retirement systems for government workers.
Image: Moody's: State Pension Liabilities Hit $1.3 Trillion

France: Labor Reform Gathers Steam Among Lawmakers

Re-Blogged From Worldview.Stratfor.com

The French government has the backing to potentially pass a broad labor reform package. During a press conference Aug. 31, French officials presented details on labor reform, including five “ordinances” (legislative acts similar to presidential decrees). French President Emmanuel Macron promised during his campaign to restore France’s reputation as a European power at the same level as Germany. These pro-business measures aim to increase France’s competitiveness and to help the second-largest EU economy.

The labor reform initiative proposes to give more flexibility to enterprises and aims to reduce unemployment from 9.4 percent to 7 percent by the end of the current legislature and presidency in 2022. The proposed reform includes changes to workers’ representation and contracts. Negotiation of salaries will take place at the enterprise level, instead of the sector level. French businesses would also be able to fire workers based on their economic impact domestically rather than internationally.

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British Suddenly Stop Buying Cars

By Mark O’Byrne -Re-Blogged From http://www.Silver-Phoenix500.com

British people suddenly stopped buying cars

– Massive debt including car loans, very low household savings – Brexit and decline in sterling and consumer confidence impacts – New cars being bought on PCP by people who could not normally afford them – UK car business has ‘exactly the same problems’ as the mortgage market 10 years ago, according to Morgan Stanley – Bank of England is investigating to make sure UK banks are not overly exposed… – Prudent British people buying gold with cash, not cars with debt

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Yet Another Renewable Energy Boondoggle

By Paul Driessen Re-Blogged From http://www.WattsUpWithThat.com

Wilkinson Solar wants to catch the solar wave, and make bundles of money sending electricity to the grid whenever it’s generated, even if it’s not needed at the time. The company’s proposed 288,120 solar panels would blanket 600 acres of now scenic farmland next to a school near the North Carolina coast. The project carries lessons for the rest of America – and all locales considering solar.

Locals are not happy. The electricity would be exported out of the area, which has been hit by Category 3 and 4 hurricanes and multiple tropical storms over the years. Another big one would likely send glass shards flying all over. Meanwhile, the Tar Heel state averages just 213 sunny days per year and 9 hours of bright sun per day; that translates into electricity just 20% of the year – unpredictably, unreliably, less affordably. Carbon dioxide reduction benefits? None. These and other issues must get a full hearing, before regulators issue any approvals.

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Outlook For The Dollar Price Of Gold

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Now that gold has become overbought on Comex, the price is vulnerable to being trashed, yet again, by the too-big-to-fail banks. It is a familiar operation in gold futures markets, where speculators buying contracts protect themselves with stop-losses. All the TBTF banks need is a pause in the speculator’s buying and a little good news (bad for gold). Ideally, the active contract will be running into maturity, so the speculators are forced to put up or shut up: in other words, sell the contract, roll it into another later maturity, or stand for delivery.

Bearing in mind these speculators are running highly leveraged positions, greed turns to fear on a sixpence. The TBTF banks will have supplied the speculators with their longs by going short. From the moment you go long, you are trapped in a trader’s version of Hotel California.

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Callous CALAS Activists Against the Poor

By Paul Driessen – Re-Blogged From http://www.WattsUpWithThat.com

Anti-mining groups “protect” local tribe against phony risks by trampling on Guatemalan workers.

Not long ago, supposed “environmental justice” concerns at least involved risks to mine workers and their families. The risks may have been inflated, or ignored for decades, but they were a major focus.

In one case, a state-run mine and smelter had fouled the air, land and water with toxic contaminants in a Peruvian town for 75 years. Environmental groups raised few objections – until a U.S. company bought the properties and began installing modern pollution controls, implementing worker health and safety practices, cleaning up widespread lead dust, and initiating numerous community improvement projects.

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