Whole Foods To Fire 1,500 Employees

Whole Foods To Eliminate 1,500 Jobs – Bloomberg


Whole Foods Market Inc. plans to eliminate 1,500 jobs to reduce costs and fight back against rivals that are undercutting its prices.

The positions, representing about 1.6 percent of the company’s workforce, will be eliminated over the next eight weeks, with many coming through attrition, the Austin, Texas-based grocery-store chain said Monday in a statement.

Whole Foods is working to keep expenses low so it can offer its organic and natural products at lower prices and beat back an onslaught from mainstream grocers that now carry similar offerings. The company in July reported third-quarter profit and sales that trailed analysts’ estimates as the new competition restrained growth.

Whole Foods fell 1.1 percent to $30.75 at the close in New York. The shares have slid 39 percent this year, while the Standard & Poor’s 500 Index has lost 8.6 percent.

Co-Chief Executive Officer Walter Robb called the job cuts a “very difficult decision,” and the company said it is paying the workers in full during the next eight weeks.

Whole Foods, which has about 420 locations, has seen its growth slow as traditional supermarkets carry more natural and organic fare. Wal-Mart Stores Inc. sells Wild Oats organic foods, while Kroger Co.’s Simple Truth line has reached $1 billion in annual sales.

The company is responding by opening a less-expensive, tech-focused grocery chain called 365 by Whole Foods Market. The first location is set to open next year in Los Angeles.



The Donald Reveals His Tax Plan (Video)

Trump Plan Cuts Taxes For Millions – Wall Street Journal


Republican presidential candidate Donald Trump unveiled an ambitious tax plan Monday that he says would eliminate income taxes for millions of households, lower the tax rate on all businesses to 15% and change tax treatment of companies’ overseas earnings.

Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.

Many middle-income households would have a lower tax rate under Mr. Trump’s proposal, but because high-income households generally pay income tax at much higher rates, his proposed across-the-board rate cut could have a positive impact on them, too. For example, an analysis of Jeb Bush’s plan – taxing individuals’ incomes at no more than 28% – by the business-backed Tax Foundation found that the biggest percentage winners in after-tax income would be the top 1% of earners.

Mr. Trump’s plan appears designed to help him, as the GOP front-runner, cement his standing as a populist – though that message is complicated by the fact that the billionaire, like other Republican leaders, would eliminate the estate tax.

“My plan will bring sanity, common sense and simplification to our country’s catastrophic tax code,” Mr. Trump said in an interview. “It will create jobs and incentives of all kinds while simultaneously growing the economy.”

But Mr. Trump will face a challenge in convincing skeptics that his aggressive tax cuts can be implemented without adding to the federal deficit.

To pay for the proposed tax benefits, the Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions, a politically dicey proposition. Mr. Trump also would end the “carried interest” tax break, which allows many investment-fund managers to pay lower taxes on much of their compensation.

A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money, even if the money stays overseas, but allow a few years for the tax to be paid. The Trump campaign estimates that many companies would choose to bring their money back home, boosting jobs and investment in the U.S.

Mr. Trump also would impose an immediate tax on overseas earnings of American corporations; currently, such tax payments can be deferred. All told, the campaign says the plan would be revenue neutral – neither raising nor lowering federal revenues – by the third year and then begin adding revenue.

With the tax plan’s release, Mr. Trump is moving to quell criticism that his campaign has been more style and less substance. This tax proposal follows his well-known immigration plan in the summer and one on gun rights last week.

Mr. Trump saves some money and fiscal headaches by skipping some of the big but complicated and costly changes that other candidates have embraced, such as business-expensing breaks and so-called territorial taxation for multinational corporations.

On the individual side, Mr. Trump would consolidate the current seven rates to four, of 0%, 10%, 20% and 25%. Those changes alone would exempt all married couples making $50,000 or less from the income tax, as well as singles making $25,000 or less.

The 10% bracket would apply to incomes from $50,000 to $100,000 for a married couple; the current 10% bracket has a ceiling of $18,450. The new 25% top bracket would apply to married couples’ incomes in excess of $300,000, which currently are subject to rates as high as 39.6%. Mr. Trump also would cut the top capital gains rate to 20%, from the current 23.8%. And he would eliminate the alternative minimum tax.

But the candidate doesn’t propose to end taxation of individuals’ investment income, as some other Republicans propose, nor would he expand the standard deduction, child-credit and other middle-class breaks as some other GOP candidates have suggested.

For businesses, Mr. Trump’s 15% rate is among the lowest that have been proposed so far. Rand Paul has proposed a 14.5% flat-tax rate for all types of income. Marco Rubio, another candidate with a detailed plan, would tax all business income at no more than 25%. Mr. Bush has proposed a 20% top corporate rate. The current top corporate tax rate is 35%, and small business income is subject to rates of as much as 39.6% (although many small businesses pay out a lot of their profits as lower-taxed dividends or capital gains). The campaign argues the rate would be among the lowest among industrialized nations, giving U.S. companies an edge to compete.

The lower corporate rates would provide “a tremendous stimulus for the economy,” the campaign’s plan argues. Mr. Trump would not, however, allow businesses to expense all their new equipment purchases, as some other Republicans do.

The plan proposes to simplify tax filing for many lower- to middle-income households. The plan says that some 42 million households that currently file tax forms to establish that they don’t owe any federal income tax now will be able to file their returns on a single page.

The 31 million households that have been paying some taxes but now won’t have any tax liability can use the same single-page, and keep an average of $1,000 in tax savings, the Trump campaign says. Today, 36% of American households today pay no income taxes, and that number would grow to 50%.

The Trump plan would raise revenues in at least a couple of significant ways. It would limit the value of individual deductions, with middle-class households keeping all or most of their deductions, higher-income taxpayers keeping around half of theirs, and the very wealthy losing a significant chunk of theirs. It also would wipe out many corporate deductions.

All taxpayers would keep their current deductions for mortgage-interest on their homes and charitable giving.

The plan also proposes capping the amount of interest payments that businesses can deduct now, a change phased in over a long period, and would impose a corporate tax on future foreign earnings of American multinationals.

Click HERE to view the entire Trump tax plan.



*VIDEO* Greg Gutfeld: Why The Right Is Right

H/T Right Scoop



Obama Regime Just Weeks Away From Imposing Most Economically Crippling Regulation In History

‘Most Expensive Regulation In History’ – WorldNetDaily


The Obama administration is just weeks away from imposing a new ozone particulate standard that manufacturers say will cripple jobs and productivity in the U.S. and leave some firms and industries clinging to life.

The National Association of Manufacturers released a study suggesting the standard would cost the U.S. 1.4 million jobs and $1.7 trillion in productivity by 2040 if the standard is lowered from 75 parts per billion to 65 parts per billion. The EPA could bring it as low as 60 parts per billion, which the study projects would be catastrophic.

For business owners like Summitville Tiles CEO David Johnson, the change would be devastating. The firm is based in Ohio, which relies heavily on manufacturing for jobs and economic growth. Johnson recently wrote a column explaining what’s at stake if the Obama administration get’s it’s way.

“We have 88 counties in this state and under this new ozone standard, all 88 of these counties would be out of compliance, just by the stroke of the pen of this executive order of the president,” Johnson said.

In addition to burdening existing manufacturers, Johnson said the new ozone standard would stifle new business.

“It would essentially stop any new projects from going forward unless there were reductions in emissions in other plants in other areas,” he said. “In other words, there’s a trade-off. If you’re going to add new emissions, you’d have to reduce emissions somewhere else. So (if you) shut down a factory or a company goes out of business, then and only then would you have a permit to expand your particular operations.”

According to Johnson, American manufacturing has never received a gut punch like this from its own government.

“This is not a bill that’s been passed by Congress, hasn’t been vetted, hasn’t been studied,” Johnson said. “It’s simply President Obama and his EPA’s effort to combat what they believe is global warming. So yeah, it would be the most expensive regulation in the history of regulations.”



Obamaconomy Update: Communist China To Build High-Speed Railway From Los Angeles To Las Vegas

China, U.S. Reach Agreement On High-Speed Rail Before Xi Visit – Bloomberg


A China Railway Group-led consortium and XpressWest Enterprises LLC will form a joint venture to build a high-speed railway linking Las Vegas and Los Angeles, the first Chinese-made bullet-train project in the U.S.

Construction of the 370-kilometer (230-mile) Southwest Rail Network will begin as soon as next September, according to a statement from Shu Guozeng, an official with the Communist Party’s leading group on financial and economic affairs. The project comes after four years of negotiations and will be supported by $100 million in initial capital. The statement didn’t specify the project’s expected cost or completion date.

The agreement, signed days before President Xi Jinping’s state visit to the U.S., is a milestone in China’s efforts to market its high-speed rail technology in advanced economies. The country has been pushing the technology primarily in emerging markets – often with a sales pitch from Premier Li Keqiang – as a means to project political influence. A $567 million contract last October to supply trains for Boston’s subway system was China’s first rail-related deal in the U.S.

The agreement also represents an important victory in China’s high-speed rail rivalry with Japan, as the two countries have competed for train contracts throughout Asia. The parent company of JR Central, Japan’s largest bullet-train maker, had expressed interest in the Los Angeles-Las Vegas line several years ago, and China and Japan are both expected to bid to supply train cars for a proposed high-speed rail line in California’s Central Valley.

“This is the first high-speed railway project where China and the U.S. will have systematic cooperation,” Yang Zhongmin, a deputy chief engineer with China Railway Group, said after a news conference in Beijing. “It shows the advancement of China-made high-speed railways.”

The Los Angeles-Las Vegas project will create new technology, manufacturing and construction jobs in the region, Shu’s statement said.

Through July, China had built more than 17,000 kilometers (10,565 miles) of domestic high-speed rail lines, according to the official Xinhua News Agency.

Apart from the railway project, China National Machinery Industry Corp. and General Electric Co. signed a memo of understanding to invest $327 million to develop 60 wind power stations in Kenya, Shu said at the Beijing news conference.

During Xi’s visit starting next week, China and the U.S. are expected to reach agreements on trade, energy, climate, finance, aviation, defense and infrastructure construction, China Foreign Minister Wang Yi said Wednesday. Xi is due to visit Boeing Co.’s factory in Everett, Washington as China makes a push to build its own passenger planes.

“Economic and trade cooperation will be a major topic for president Xi’s visit to the U.S.,” Shu said in Beijing. “China and the U.S. share common interests and have solid foundation for cooperation.”



Obama’s Recovery In Just 9 Charts (Tyler Durden)

Obama’s Recovery In Just 9 Charts – Tyler Durden




Federal Assclowns Fine Energy Company For Lowering Costs And Improving The Environment

What Happened When One Company Lowered Its Costs and Improved The Environment? Government Fines. – Daily Signal


Here’s how the federal government rewards an energy company for upgrading its power plants to lower costs for families and businesses and improving the environment: slap them with a nearly a million dollar fine, force them to close power plant units and lay off employees and make them millions of dollars in environmental mitigation projects.

If that sounds backwards to you, well it is.

In a lawsuit that lasted 15 years, Duke Energy and the Environmental Protection agency (EPA) reached a settlement where Duke “will pay a civil penalty of $975,000, shut down a coal-fired power plant and invest $4.4 million on environmental mitigation projects.”

The EPA and Department of Justice brought the suit against Duke Energy in 2000 arguing that the company failed to comply with the Clean Air Act when the company modified 13 coal-fired units in North Carolina.

At issue is the New Source Review (NSR), one of the 1977 Clean Air Act amendments. Power plants must meet certain air quality standards, and companies must follow Prevention of Significant Deterioration (PSD) rules to demonstrate that the construction and operation of new projects and major modifications will not increase emissions above a specified threshold.

Therefore, if a company wants to make plant modifications that improves the power plant’s efficiency, it will trigger New Source Review and the EPA will regulate the plant to meet the most recent emissions standards.

However, what constitutes a significant modification is subjective under the rules. The amendment excludes routine maintenance, repair, and replacement, but what falls under the definition of significant modification remains murky, despite multiple administrative attempts to clarify the meaning. The lack of clarification also forces companies into years, if not decades, of litigation over NSR violations. Such is the most recent case with Duke Energy.

Companies could be allocating resources to invest in new equipment and provide jobs that benefit energy consumers, but instead have to waste resources fighting ridiculously long and unnecessary lawsuits. Even though companies argue in court they complied with the law, the result will be a settlement where the federal government hands down millions of dollars in fines, and forces the closure of power plants, killing jobs in the process.

New Source Review is a cost to both the economy and the environment. Plant upgrades can improve efficiency and reduce operational costs, thereby lowering electricity costs for families and businesses, increasing reliability, and providing environmental benefits.

Nevertheless, because those upgrades trigger a New Source Review, the policy discourages new investment and keeps power plants operating less efficiently than they otherwise would.

Although increasing the efficiency of a plant will likely cause it to run longer and consequently cause the plant’s emissions to rise, NSR does not account for the emission reduction that would occur if a less efficient plant reduced its hours of operation to compensate for increases in operation of a more efficient plant.

That is why Congress should repeal New Source Review.

New Source Review is a bureaucratic mess that prevents plants from operating at optimal efficiency. Power plants are already clean because companies equip them with sophisticated, state-of-the-art pollution prevention technology to ensure safe operations no matter how long the power plant runs.

Repealing NSR would not be a free pass for companies to pollute but instead allow them to improve plant efficiency, reduce emissions and also increase power generation to meet U.S. energy needs.



Union-Owned RINO Douchebags Attempting To Kill Right-To-Work Legislation In Missouri

These Are The Union-Backed MO Republicans Blocking Right-To-Work – Daily Caller


With Missouri Republicans gearing up to vote on a veto override Wednesday to ban mandatory union dues, six of their union-backed colleagues are all who stand in their way.

House Bill 116 was vetoed by Democratic Gov. Jay Nixon back in June. The measure would have outlawed mandatory union dues or fees in the state. With seven Republicans opposed to the bill, it is unlikely supporters will be able to override the veto. All but one of the Republicans opposed are heavily endorsed by organized labor.

“All but one received significant support from unions and all representative districts have a union presence,” the Center for Worker Freedom (CWF) noted in an article. “These representatives need to put their own interests to the side and vote to give their citizens’ the freedom they deserve.”The contributors listed include the Teamsters Local 688, the Missouri State Teachers Association (MSTA), Missouri AFL-CIO, Boilermakers Local 27 and the local chapter of the United Brotherhood Of Carpenters among others.

“Missouri unions are working against job creators and those who would spur the state’s economy by fighting right to work as part of a far left, liberal agenda that supports groups like Planned Parenthood and the Sierra Club,” Jeff Bechdel, of Missouri Rising, told The Daily Caller News Foundation in a statement. “On both counts, these unions are working against what’s best for Missourians.”

Missouri Rising, a nonprofit affiliate of the Republican super PAC, American Rising, also released a video. The video criticized Missouri union bosses for attempting to block the measure.

CWF found each Republican opposed has received several thousand dollars in union contributions. Some much higher. According to National Institute on Money in State Politics, Ruth has received $10,328 from various public sector unions, Black has accepted over $20,000 from general trade unions alone and Sommer has received over $11,000.

“Our endorsements are based on their views of educational issues,” Mike Wood, director of governmental relations for MSTA, told TheDCNF. “We don’t have a dog in the fight.”

Wood also noted MSTA isn’t technically a union. As an association they engage in union activities like collective bargaining but have a wider scope of responsibilities. MSTA has, he argued, contributed to those lawmakers that share a similar view on education. Meaning policies like right-to-work aren’t a factor.

The Boilermakers also noted it’s about which lawmakers they already share common ground with. A representative for the union told TheDCNF it doesn’t donate to influence lawmakers.

Nixon has also been under suspicion for union contributions as well. A week after the veto, the governor received a $50,000 campaign contribution from the United Automobile Workers (UAW). Lt. Gov. Peter Kinder has since urged Nixon to return the money. Nixon has defended his decision to veto the measure, arguing the policy is bad for workers.

“This extreme measure would take our state backward, squeeze the middle-class, lower wages for Missouri families, and subject businesses to criminal and unlimited civil liability,” Nixon declared in a statement from June. “Right-to-Work is wrong for Missouri, it’s wrong for the middle-class – and it must never become the law of the Show-Me State.”

The Competitive Enterprise Institute (CEI), however, has stated in a recent report the policy will benefit state residents. The report, titled, “Why Right to Work is Right for Missouri” estimated potential income loss associated with the state not having the policy between 1977 and 2012.

“In states where people have choice over whether to join a labor union or not, economic growth and personal income are demonstrably higher,” Trey Kovacs, a policy analyst for CEI, noted in a statement. “Missourians deserve the right to decide for themselves whether labor unions are meeting their needs.”

The seven Republicans opposed to the measure did not respond to a request for comment from TheDCNF.

The policy, also known as right-to-work, is usually opposed by unions. The union funded Republican opposition includes Kathie Conway, Kevin Corlew, Bart Korman, Becky Ruth, Linda Black and Chrissy Sommer. Rep. Bill Kidd is the only Republican expected to vote against the override that does not receive support from labor unions.



The Unintended Yet Completely Foreseeable Consequences Of Leftist Economic Interventionism

$15.00 An Hour Moonbats Become ‘McJobless’ In Seattle As Order Screens Arrive – Weasel Zippers


If you like your food stamps, you can keep your food stamps.

Via BPR:

While it seems liberals may think that raising the minimum wage will raise living standards for poor Americans, they should have seen this coming.

With Los Angeles joining Seattle in setting a $15 minimum wage (Los Angeles by 2020, and Seattle by 2021), it stands to reason that McDonald’s would find a way around simply paying workers more, as Vox pointed out the obvious fact that “the reality is that McDonald’s just wants to make money.”
Keep reading



Automats To Make A Comeback In San Francisco Thanks To New $15 An Hour Minimum Wage

$15 An Hour Waiters In San Francisco, Meet Your Electronic Replacements! – Soopermexican

Nothing makes me happier than to see liberals having to have their own policies shoved back in their soy-eating, clove-smoking, soul-patch-wearing smug faces. And that’s exactly what is happening in liberal San Francisco where a minimum wage hike first closed down a bunch of restaurants, and is now encouraging an innovation in self-automated restaurants!

Watch below:


Yes!! iPads!! I don’t see them out front carrying their “fight for $15″ signs! LOL!

More on the Daily Signal:

Want to know what the future of the restaurant industry looks like? It could come in the form of a San Francisco fast food restaurant named Eatsa.

Eatsa is a quinoa (a South American grain dish) eatery that is preparing to automate most of its workforce.

The Ferenstein Wire got a sneak peak at the restaurant, which will be debuting a new healthy fast food prototype in downtown San Francisco. The restaurant promises cheap, healthy food and has customizable menus with an automated experience.

(It’s difficult to describe all the futuristic design elements that go into the delivery process. Eatsa is science fiction in real life.)

Instead of a front counter, customers choose their bowls at a tablet kiosk. Then food pops up in one of a series of translucent cubbyholes a few minutes later.

For now, little of the restaurant is actually automated, but the owners plan to replace a good portion of their cooking and serving workforce with robots in the next year of two.

So Eatsa will function as a test for the feasibility of automated restaurants.

Currently, Eatsa uses a line of chefs working diligently behind the scenes, but their goal is for patrons to be unaware if humans or robots are serving them.

Suck on THAT, minimum wage liberals!! Can’t enjoy the $15 minimum wage when you’re in the unemployment line, right? LOL!!



*VIDEO* Ben Carson Speech And Q&A At Steamboat Institute Freedom Conference (08/28/15)



Obamanomics Update: Number Of People Not In Labor Force Tops 94 Million For First Time In History

Record 94,031,000 People Not In Labor Force – Big Government


The number of people not in the labor force exceeded 94 million for the first time, hitting another record high in August, according to new jobs data released Friday by the Bureau of Labor Statistics.

The BLS reports that 94,031,000 people (ages 16 and over) last month were neither employed nor had made specific efforts to find work in the prior four weeks.

The number of individuals out of the civilian work force represented a jump of 261,000 over July’s record of 93,626,000 people.

August’s labor force participation rate remained at the same level as the prior two months at 62.2 percent, the lowest level seen since October 1977 when the participation rate was 62.4 percent.

The civilian labor force also experienced a slight decline of 41,000 people, compare to July’s 157,106,000 people in the civilian labor force to 157,065,000.

In total 149,036,000 people were employed in August, 8,029,000 were unemployed, and 5,932,000 people who wanted a job.

Overall the Labor Department reported that the economy added 173,000 jobs in August. The unemployment rate was 5.1 percent, lower than July’s 5.3 percent.



Hundreds Of Thousands Of Fed-Up Taxpayers Flee Democrat-Run States For Republican Ones

Taxpayers Fleeing Democrat-Run States For Republican Ones – Americans For Tax Reform


In 2013, more than 200,000 people on net fled states with Democrat governors for ones run by Republicans, according to an analysis of newly released IRS data by Americans for Tax Reform.

“People move away from high tax states to low tax states. Every tax refugee is sending a powerful message to politicians,” said ATR President Grover Norquist. “They are voting with their feet. Leaders in Texas and Florida are listening. New York and California are not.”

That year, Democrat-run states lost a net 226,763 taxpayers, bringing with them nearly $15.7 billion in adjusted gross income (AGI). That same year, states with Republican governors gained nearly 220,000 new taxpayers, who brought more than $14.1 billion in AGI with them.

Only one-third of states with Democrat governors gained taxpayers, compared to three-fifths of states with Republican governors.

Top 5 loser states for Democrat governors in 2013:

· New York (114,929 people with $5.7 billion in AGI)

· Illinois (68,943 people with $3.8 billion in AGI)

· California (47,458 people with 3.8 billion in AGI)

· Connecticut (14,453 people with $1.8 billion in AGI)

· Massachusetts (11,915 people with $1 billion in AGI)

Top 5 winner states for Republican governors in 2013:

· Texas (152,912 people with $6 billion in AGI)

· Florida (74,094 people with 8.3 billion in AGI)

· South Carolina (29,176 people with 1.6 billion in AGI)

· North Carolina (26,207 people with $1.5 billion in AGI)

· Arizona (16,549 people with $1.5 billion in AGI)

The single largest net migration from one state to another took place between New York and Florida (17,355 people).



Tuesday’s Close: Dow Plummets Another 470 Points

New Month, Same Woes: Dow Plummets 470 Points – Daily Freeman


Stocks plunged again Tuesday, continuing a rocky ride for Wall Street, after an economic report out of China rekindled fears that the world’s second-largest economy is slowing more than previously anticipated.

The sell-off adds to what has been a difficult few weeks for U.S. and international markets. U.S. stocks just closed out their worst month in more than three years. Tuesday’s drop also dashed hopes that, after some relatively calm trading Friday and Monday, the stock market’s wild swings were coming to an end.

“This market remains fragile,” said Jack Ablin, chief investment officer at BMO Private Bank. “There’s nothing fundamentally wrong with the U.S. economy, but we are going through this correction process. We’ve got a rocky road ahead of us.”

Stocks started the day sharply lower and never recovered, with the Dow Jones industrial average falling as much as 548 points. No part of the market was spared. All 10 sectors of the Standard & Poor’s 500 index fell more than 2 percent. Just three stocks in the S&P 500 closed higher.

“Monday’s relatively peaceful markets are a distant memory as Chinese data and shares sparked another severe … reaction from the developed world,” said John Briggs, head of fixed income strategy at RBS.

In the end, the Dow lost 469.68 points, or 2.8 percent, to 16,058.35. The S&P 500 fell 58.33 points, or 3 percent, to 1,913.85 and the Nasdaq composite fell 140.40 points, 2.9 percent, to 4,636.10.

As it’s been for the last several weeks, the selling and problems started in Asia.

An official gauge of Chinese manufacturing fell to a three-year low last month, another sign of slowing growth in that country. The manufacturing index, which surveys purchasing managers at factories, dropped to a reading of 49.7 in August from 50.0 in July. A reading below 50 indicates a contraction.

China’s stocks sank on the news, with Shanghai Composite Index closing down 1.2 percent. The index has lost 38 percent of its value since hitting a peak in June.

The Chinese economy has been a focus for investors all summer, and the concerns have intensified in the last three weeks. China devalued its currency, the renminbi, in mid-August. Investors interpreted the move as a sign that China’s economy was not doing as well as previously reported.

Investors moved into traditional havens like bonds and gold Tuesday. Bond prices rose, pushing the yield on the benchmark 10-year Treasury note down to 2.16 percent from 2.22 percent on Monday. Gold rose $7.30, or 0.6 percent, to settle at $1,139.80 an ounce.

Faced with the possibility of slowing demand in China, the commodity markets once again took the brunt of the hit.

U.S. crude oil fell $3.79 to close at $45.41 a barrel in New York. Brent Crude, a benchmark for international oils used by many U.S. refineries, fell $4.59 to close at $49.56 in London.

Energy stocks were once again among the biggest decliners. Exxon Mobil fell nearly 4 percent and Chevron fell 2.5 percent. Exxon is down 22 percent this year, Chevron 30 percent.

In a sign of how battered energy companies have been this year, ConocoPhillips announced it was laying off 10 percent of its workers, roughly 1,800 workers, as a reaction this year’s plunge in oil prices.

Along with worries about China, speculation about whether or not the Federal Reserve will raise interest rates as soon as this month continues to weigh on markets. Traders say a lot hinges on the August jobs report, which will be released this Friday. Economists are forecasting that U.S. employers created 220,000 jobs in the month and that the unemployment rate fell to 5.2 percent.

The Federal Reserve meets September 16 and 17. Some economists are predicting that policymakers will be confident enough in the U.S. economic recovery to raise interest rates for the first time in almost a decade. While Fed officials are mostly focused on the U.S. economy, they cannot ignore problems in the global economy.

“China’s problems are totally a concern for the Fed,” said Tom di Galoma, head of rates trading at ED&F Man Capital. “With inflation remaining low here, I just don’t a reason why they would raise rates.”

Markets in Europe were broadly lower. Germany’s DAX fell 2.4 percent, France’s CAC-40 lost 2.4 percent and the U.K.’s FTSE 100 index declined 3 percent. Japan’s Nikkei 225 was also volatile, dropping 3.8 percent. The Hang Seng in Hong Kong sank 2.2 percent. Stocks also fell in South Korea and Australia.

The dollar fell to 119.68 yen from 121.20 yen on Monday. The euro rose to $1.1307 from $1.1225.

In other energy markets, wholesale gasoline fell 10.3 cents to close at $1.396 a gallon, heating oil fell 12.3 cents to close at $1.578 a gallon and natural gas rose 1.3 cents to close at $2.702 per 1,000 cubic feet.

Copper lost 4 cents to $2.30 a pound and palladium slumped $23.05 to $578.50 an ounce. The price of silver edged down four cents to $14.61 an ounce and platinum edged down $2.10 to $1,008.40 an ounce.



Stocks End Down Again – Worst 3-Day Point Decline In History Of Dow Jones

DOW, S&P Close Lower In Biggest Reversal Since Oct. 08 – CNBC

U.S. stocks closed lower, after a failed attempt to rally from the Dow’s worst 3-day point decline in history, as investor confidence waned amid continued concerns about China and global growth.

The Dow Jones industrial average and the S&P 500 closed about 1.3 percent lower after rallying nearly 3 percent earlier, their biggest reversal to the downside since Oct. 29, 2008. The S&P 500 remained in correction territory after falling there on Monday. The index also posted its first six-day losing streak since July 2012.

“That crash (Monday) was so big and so long since we had one (investors) don’t want a repeat of 2008 so they bail out,” said Lance Roberts, general partner at STA Wealth Management.

The Dow fell 205 points and S&P 500 closed below 1,900 after falling into negative territory in the last half hour of trade. The Nasdaq Composite failed to hold slight gains and closed 0.44 percent lower.

The Dow traveled another 1,600 points during Tuesday’s trading session, adding to the 4,900 points the index traveled in down and up moves on Monday.

DJIA intraday moves


“Whatever triggered the consternation in the last few trading sessions is likely to be replayed again,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. He said a negative close “would be a set up to grind sideways to work out this process, if this rally and enthusiasm can’t last I think it’s an indicator (of that consternation).”

The major averages began paring gains in late morning trade after the European close.

“This is typical after a wild swing we had yesterday,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “It’s just going to take some time for confidence to rebuild in the market.”

Earlier, the Dow gained as much as 441.5 points and the Nasdaq outperformed, up more than 3.5 percent. Morning leaders such as Netflix and Chinese stocks such as JD.com and Baidu still closed more than 4 percent higher. Alibaba gained 4.2 percent.

However, Apple clung to gains of just 0.6 percent after earlier surging more than 7 percent.

In the open, no S&P 500 stocks in the index hit new 52-week highs or lows, after about 200 names hit new 52-week lows Monday.

Morning gains fell short of recouping Monday’s more-than-3.5 percent plunge and the Dow remained on pace for its biggest monthly percentage loss since February 2009 and the Nasdaq since 2008. The S&P 500 was on track for its largest percentage loss since May 2010.

“It’s not as great as a bounce that many were anticipating,” said Kevin Mahn, chief investment officer at Hennion and Walsh. “I think obviously the market sold off far more than it should have.”

“We kind of dipped into that correction territory but we’re not going to stay there,” he said, noting the S&P 500 should trade more in pullback territory between 5 to 10 percent than in correction mode, between 10 to 20 percent lower.

Some of the things “bothering markets yesterday were China and collapsing commodity prices and both of those have given us some relief and when I look at China I don’t look at the Shanghai market. I look at the Hong Kong market,” James Meyer, chief investment officer at Tower Bridge Advisors, said of the morning rally.

The Hang Seng closed up 0.72 percent, while the Nikkei plunged 4 percent and the Shanghai Composite extended recent losses to fall below the psychologically key 3,000 mark, down 7.6 percent. However, European stocks surged, with the DAX up nearly 5 percent.

Crude oil futures settled up $1.07, or 2.80 percent, at $39.31 a barrel. Brent traded more than 1 percent higher to above $43 a barrel.

For the rally to be real “we have to end strong and follow-through tomorrow,” Meyer said.

In early trade Tuesday, Dow futures spiked above 600 points, implying an open of more than 450 points.

U.S. stock index futures extended gains after the Chinese central bank announced plans early in the morning ET to cut its one year lending rate to 4.6 percent, which the People’s Bank of China said was provide long-term liquidity and help support the economy.

“I’m looking for every reason to be a buyer,” said Nick Raich, CEO of The Earnings Scout, who remains bearish on equities. “We’re not upgrading our view at this point until we see topline growth… until then it’s going to be hard to sustain a rally.”

For Tuesday’s open, the New York Stock Exchange invoked Rule 48 for the second day in a row, Dow Jones reported.

The exchange used the rule before Monday’s open after futures for several major averages hit limit down. The last time the rule was used was during the financial crisis.

Stocks plummeted on Monday, with the S&P 500 joining the other major averages in correction territory. Nine of the 10 sectors are in correction territory, with consumer staples less than 1 percent away.

The Dow had its biggest intraday swing ever, falling as much as 1,089 points in the open on Monday. U.S. stocks closed more than 3.5 percent lower, off session lows in high volume trade as fears of slowing growth in China pressured global markets.

Cumulative trade volume was 13.94 billion shares as of 4:00 p.m. ET, the highest volume day since Aug. 10, 2011. Composite trade volume on the New York Stock Exchange was 6.57 billion shares, the heaviest since Oct. 27, 2011.

High-frequency trading accounted for 49 percent of Monday’s total trade volume of 14.2 billion shares, according to TABB Group. Average daily trade volume month-to-date is 7.5 billion shares, with high-frequency trading accounting for 49 percent. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.

Trade volume was tepid throughout most of Tuesday’s session before accelerating into the close as the major averages sold off.

Housing data out Tuesday missed expectations slightly but continued to indicate strength in the market. New home sales figures for July came in at an annual rate at 507,000. The Case-Shiller home price indices for June showing home prices rose less than expected.

In other economic news, the Conference Board’s consumer confidence indicator for August rose to 101.5, beating expectations.

“So far it doesn’t appear that we’ve had any disease from the foreign markets (in the economy),” Luschini said.

The U.S. dollar traded about 1 percent higher against major world currencies, with the euro lower near $1.15 and the yen trimming losses against the greenback near 118 yen.

Treasury yields jumped from lows touched Monday, with the 10-year Treasury yield at 2.09 percent, off highs of near 2.14 percent, and the 2-year note yield at 0.60 percent after trading near 0.64 percent.

The Treasury Department auctioned $26 billion of two-year notes at a high yield of 0.663 percent, lower than the previous July auction. Demand was below average and the lowest since October.

In earnings, Best Buy, Toll Brothers and Sanderson Farms reported before the market open.

Best Buy surged 12.57 percent. The electronic retailer beat estimates by 15 cents with adjusted quarterly profit of 49 cents per share, with revenue also beating forecasts. Same-store sales rose 2.7 percent, compared to the Thomson Reuters forecast of a 1.0 percent increase.

Toll Brothers plunged nearly 8 percent after reporting a decline in profits year-over-year. The luxury homebuilder did report a 12 percent rise in third-quarter orders.

Sanderson Farms closed 0.09 percent lower after the poultry producer posted earnings that fell substantially shy of the $2.90 consensus estimate with quarterly profit of $2.27, while revenue was also below forecasts. The company said a key factor in the quarter’s results was continued pricing pressure.

The Dow Jones Industrial Average closed down 204.91 points, or 1.29 percent, at 15,666.44, with Merck plunging 5.2 percent as the greatest laggard and Apple and Walt Disney the only advancers.

The Dow transports also reversed intraday gains to close down 1.7 percent, solidly in correction territory.

The S&P 500 closed down 25.59 points, or 1.35 percent, at 1,867.62, with utilities plunging more than 3 percent to lead all 10 sectors lower.

The Nasdaq closed down 19.76 points. or 0.44 percent, at 4,506.49. The iShares Nasdaq Biotechnology ETF (IBB) closed up 0.17 percent, losing intraday gains of more than 3 percent.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 37 after spiking above 50 on Monday, its highest level since February 2009.

About nine stocks declined for every seven advancers on the New York Stock Exchange, with an exchange volume of nearly 1.3 billion and a composite volume of nearly 5.2 billion in the close.

Gold settled down $15.30 at $1,138.30 an ounce.



Leftist Idiocy Update: Minimum Wage Hike Causes Seattle Restaurants To Lose 1,000 Jobs

Seattle Restaurants Suffer Worse Job Loss Since The Great Recession – Daily Caller


According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurants to lose 1,000 jobs – the worst decline since the 2009 Great Recession.

“The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession,” AEI Scholar Mark J. Perry noted in the report.

The citywide minimum wage increase was passed in June of last year. The measure is designed to increase the city minimum wage gradually to $15 an hour by 2017. The first increase under the plan was to $11 an hour in April. According to the report, Seattle restaurants have already faced severe consequences as a result. In contrast, in the six years since the 2009 financial crisis, the industry has been recovering in areas without the $15 minimum wage.

“Restaurant employment nationally increased by 130,700 jobs (and by 1.2%) during that same period,” the report also noted. “Restaurant employment in Washington increased 3.2% and by 2,800 jobs.”

Supporters of the $15 minimum wage often argue it will help the poor and stimulate economic activity. Opponents, however, argue such policies will actually hurt the poor by limiting job opportunities. How little or how much of either outcome usually depends on the study. Nevertheless, even the nonpartisan Congressional Budget Office (CBO) agrees at least some job loss is expected.

Studies also show that industries with low profit margins, like restaurants, are more likely to be hit the hardest. A June report from the investor rating service Moody’s claims the minimum wage doesn’t even have to go up to $15 an hour for negative effects to occur.

From rallies to media marketing campaigns, Fight for $15 has led much of the effort to raise the minimum wage in the past year. Though claiming to be a grassroots workers movement, the group is highly influenced and funded by the Service Employees International Union (SEIU).

The SEIU has been criticized by some, like Worker Center Watch (WCW), for using the Fight for $15 protests as a way of bypassing labor laws to more easily unionize fast food workers. Additionally, according to a report from the Center for Union Facts, a minimum wage increase would benefit the SEIU directly while hurting non-unionized SEIU competitors.

Fight for $15 and the Seattle City Council did not respond to requests for comment from The Daily Caller News Foundation.



Feds Overpaid $371.5 Million In Benefits To Disability Recipients

Social Security Administration Overpaid $371.5 Million In Disability Benefits – Washington Free Beacon


The Social Security Administration (SSA) overpaid individuals a total of $371.5 million in disability benefits from fiscal year 2009 through fiscal 2013, according to a Government Accountability Office (GAO) report.

These overpayments are cause for concern, as the Social Security’s Disability Insurance Trust Fund is expected to go broke by 2016, according to SSA’s 2015 annual report.

“During a time of growing concern about the solvency of the DI trust fund, it is important for SSA to take every opportunity to help improve the financial status of the program,” the GAO said. The report examined how these concurrent Federal Employees’ Compensation Act (FECA) payments affect Disability Insurance (DI) overpayments.

The GAO found that SSA did not detect concurrent FECA payments for about 1,040 individuals during at least one month from July 1, 2011, through June 30, 2014.

To test SSA’s internal controls, GAO randomly selected 20 beneficiaries for review. In all 20 cases, SSA’s controls failed to detect and prevent overpayments. In seven of the cases, SSA did not detect overpayments for more than a decade, and each of these individuals received $100,000 in overpaid benefits.

One of these seven individuals received FECA benefits in the 1980s and was approved for disability benefits 14 years later in 1994. The GAO found that this individual received $200,000 in overpayments for more than 20 years.

The SSA’s “internal controls” rely on beneficiaries to self-report overpayments.

“SSA officials told us that if beneficiaries do not self-report benefits, there are no system prompts that would alert SSA staff to ask beneficiaries if they are receiving any workers’ compensation benefits, including FECA payments,” states GAO. “SSA officials agreed that relying on beneficiaries to self-report benefits presents a challenge in identifying overpayments related to the concurrent receipt of FECA benefits.”

The disability insurance program is the nation’s largest cash assistance program for workers with disabilities. In fiscal year 2014 it paid $142 billion to 11 million beneficiaries.



New Obama Regulations Will Close Hundreds Of Coal Plants, Block New Ones, Increase Electricity Costs 80%

EPA Regs Will Close Hundreds Of Coal Plants, Block New Ones, Increase Costs 80% – Independent Sentinel


Obama is to fossil fuels what locusts are to crops.

The administration is coming up with Draconian regulations on coal plants Monday and they are worse than originally planned.

A government official promised on Tuesday that regulations will cost taxpayers as much as 80% more for electricity but the New York Times said the “administration argues that the rules will save the average American family $85 annually in electricity costs and bring additional health benefits.” You read that correctly.

This is the government engineered unFree Market at work. Read on.

We were promised a savings of $2500 a year in our health insurance premiums but they are skyrocketing. This energy debacle appears to be going down the same road. All of this is to control us. Coal is not bad enough to warrant this overreaction but the president wants his ideology in place.

On Tuesday, Julio Friedmann, deputy assistant secretary for clean coal at the Department of Energy, told members of the House Energy and Commerce Committee’s oversight board that regulations for new coal plants would increase electricity prices by as much as 80%, as reported by the Washington Examiner.

“The precise number will vary, but for first generation we project $70 to $90 per ton [on the wholesale price of electricity],” Friedmann said. “For second generation, it will be more like a $40 to $50 per ton price. Second generation of demonstrations will begin in a few years, but won’t be until middle of the next decade that we will have lessons learned and cost savings.”

In other words, prices are anticipated to go up, then come down as the technology develops but they will never be inexpensive as they were.

The problem is mainly that the CCS technology they are forcing on the coal plants is not ready for prime time and the people will have to shoulder the costs of the premature regulations and the immature technology. The lowered future costs are reliant on their betting on the technology they admit is not ready for use.

Friedman said coal plants would not install the CCS technology without the mandate and the government will subsidize them. That’s another cost to taxpayers so the government can force the technology through quickly.

If the technology is not ready for use, how can it be mandated and how do we know it will work?

Laura Sheehan, senior vice president of communications for the American Coalition for Clean Coal Electricity accused the Obama administration of trying to drive up energy costs and put Americans out of work.

“Today’s hearing shed further light on how grossly underdeveloped CCS remains and revealed the staggering cost increases American consumers and manufacturers will face if future power plants are forced to operate under EPA’s inane regulations,” Sheehan said. “DOE and EPA are wasting valuable taxpayer dollars by pursuing policies that will do nothing to build economic confidence and create jobs but everything to drive up energy costs and put hardworking Americans out of work.”

The government and their environmental group partners refused to listen to requests for more realistic cost ranges.

The New York Times reported that on Monday, EPA head Gina McCarthy will announce the toughest Obama regulations to date, regulations which will possibly shut down hundreds of coal-fired plants and freeze construction of new coal plants. This is part of the administration’s fundamental transformation of the energy sector which he has basically seized via the EPA.

He is fighting global warming which he sees as an existential threat though many believe his nationalization of every U.S. sector is more of an existential threat.

The NY Times reports, “the most aggressive of the regulations requires the nation’s existing power plants to cut emissions 32 percent from 2005 levels by 2030, an increase from the 30 percent target proposed in the draft regulation.”

They added, “That new rule also demands that power plants use more renewable sources of energy like wind and solar power. While the proposed rule would have allowed states to lower emissions by transitioning from plants fired by coal to plants fired by natural gas, which produces about half the carbon pollution of coal, the final rule is intended to push electric utilities to invest more quickly in renewable sources, raising to 28 percent from 22 percent the share of generating capacity that would come from such sources.”

The administration could not get a cap and trade bill passed so the president took out his pen and phone and is putting through a cap and trade bill that will probably negatively impact the lives of the middle class Americans he purports to help. If the president wins in court, it will force every state to implement his cap and trade.

Senate Majority Leader Mitch McConnell comes from a coal state and has told governors to refuse to follow the mandates.

The NY Times added that “experts”, who were left unnamed in the article, say that emissions could level off enough to prevent the worst effects of climate change. They are referring to the global warming that is in its 21st year of not warming.

Taxpayers can take small solace in the fact that this is for Mr. Obama’s legacy and he’s ramping up in time for his term’s end.

The administration says this will save the average taxpayer $85 a year but they might be using Common Core math because that’s not what Mr. Friedman said on Tuesday.

Leftist think tanks like ThinkProgress predict lower energy bills but that is not what Barack Obama promised in January 2008.




Predictable: Leftist CEO Who Cut His Pay To Give Employees $70k Minimum Wage Has Pretty Much Ruined His Business

Lib Economics!! CEO Who Cut His Pay To Give Employees ‘$70k Minimum Wage’ Pretty Much Ruined His Business – Right Scoop


When Dan Price announced that he would cut his million dollar pay in order to give his employees a $70,000 minimum wage, all the stupid little progressive morons rushed out to praise his “inspiring” move:

Matthew P. Buckley

I praise CEO Dan Price for raising the minimum wage of his workers to $70,000 and taking a pay cut himself: http://time.com/money/3831828/ceo-raise-70000-dan-price

10:12 PM – 24 May 2015

Yannick Jacob

#Inspiring: Dan Price, CEO of @GravityPymts, cut his own salary so that he could pay every employee a minimum of $70,000 a year. Way to go!!

6:50 AM – 1 Jun 2015


So as it turns out, guaranteeing employees a $70,000 salary is great for business. Gravity Payments CEO Dan Price… http://fb.me/1zDoeocyT

9:02 AM – 22 May 2015

David Bocek

Its a good thing what Dan Price of Gravity Payments is doing for his company. Paying a minimum salary of $70,000. Good idea in bad market

5:13 PM – 21 Apr 2015


CEO Dan Price, to their surprise, told his workers “that he thinks a $70,000 minimum wage is what everyone deserves.”

2:55 PM – 17 Apr 2015

Not so fast, proggies!!! Just a few months later, that dude’s business is falling apart! LOL!

From Fox News:

Dan Price, 31, tells the New York Times that things have gotten so bad he’s been forced to rent out his house.

Only three months ago Price was generating headlines – and accusations of being a socialist – when he announced the new salary minimum for all 120 employees at his Gravity Payments credit card processing firm. Price said he was doing it, and slashing his $1 million pay package to pay for it, to address the wealth gap.

“I’m working as hard as I ever worked to make it work,” he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. “I’m renting out my house right now to try and make ends meet myself.”

The Times article said Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones.

“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” Gravity financial manager Maisey McMaster, 26, told the paper.

She said when she talked to Price about it, he treated her as if she was being selfish and only thinking about herself.

“That really hurt me,” she said. “I was talking about not only me, but about everyone in my position.”

Approaching burnout, she quit.

Grant Moran, 29, also quit, saying the new pay-scale was disconcerting

“Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.”

Price said McMaster and Moran, or even critic Rush Limbaugh, the talk show host, were not wrong.

“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” he said.

The Times said customers who left were dismayed at what Price did, viewing it as a political statement. Others left fearful Gravity would soon hike fees to pay for salary increases.

LOL! I LOVE IT! This is almost as good as the Seattle minimum wage debacle! I really can’t say which is more satisfying – if y’all want to debate in the comments, be my guest. Now excuse me, I have a glass of delicious liberal tears to enjoy.

Just kidding, that would probably be disease-ridden.



Tech Giant Qualcomm Lays Off Thousands Of Americans While Simultaneously Seeking More Foreign Workers

Qualcomm Lays Off 4,500 Workers While Demanding More H-1bs – Daily Caller


Another tech giant that says it must import foreign workers because there aren’t enough skilled American workers in the industry is laying off thousands of workers.

Qualcomm – a major producer of smartphone chips – announced last week it’s eliminating 15 percent of its workforce or about 4,500 employees, just weeks after fellow tech giant Microsoft announced a massive round of layoffs.

Both companies are top beneficiaries of the H-1b visa program, which backers say allows companies to temporarily hire foreign workers for jobs they can’t find qualified Americans workers to fill. Critics contend the program is really used to cut costs.

Microsoft and Qualcomm were in the top 15 users of H-1b visas in Fiscal Year 2013, according to U.S. Citizenship and Immigration Services data obtained by Computer World. They’re part of a major tech lobbying effort to increase the cap on these temporary workers, on the grounds there is a shortage of Americans with science, technology, engineering and math degrees.

“Qualcomm has been engaged within the technology industry in highlighting the ‘skills deficit’ in all areas of today’s workforce, especially engineering,” a spokeswoman for Qualcomm told The Daily Caller News Foundation. “This is an industry-wide problem, and we are committed to working to build the pipeline of students studying STEM fields.”

One in five of the new Qualcomm hires in Fiscal Year 2013 were foreign workers with H-1b visas, according to an analysis of SEC filings by Ron Hira, a professor at Rochester Institute of Technology who is an expert in offshoring. Those 900 foreign workers hired in 2013 triple the total number of workers Qualcomm hired in 2014.

“Qualcomm and other tech firms have argued that they turn to H-1Bs because there is a significant shortage of American talent available,” Hira told TheDCNF. “Given the recent large layoff announcements by Qualcomm, Microsoft, Intel, and Cisco, how can the tech industry continue to argue there’s a shortage of American workers?”

Microsoft did not immediately respond to a request for comment.

Hira also analyzed the skills of H-1b workers Qualcomm hired from Fiscal Year 2010 through 2012, and found most of the workers weren’t the highly skilled, U.S.-trained workers lobbyists imply make up the majority of H-1b holders.

Thirty-five percent of the 1,265 workers Qualcomm hired at that time held only a bachelors degree, and just 32 percent held advanced U.S. degrees. Only 44 of them held Ph.Ds from U.S. universities.

“This is very different than the carefully constructed, and misleading, narrative constructed by the tech industry that the H-1b program is primarily a vehicle for keeping people from abroad that the U.S. trained, and paid for,” Hira told TheDCNF.