We will have a mirror site at http://nunezreport.wordpress.com in case we are censored, Please save the link

Wednesday, August 19, 2015

Mysterious Trumpet-Like Sounds Around World Leaves Many Baffled

“If a Shofar shall be blown in a city, can it be that the inhabitants will not be shaken?” (Amos 3:6)
Mysterious trumpet-like noises from the sky have been “continuing to baffle people all over the world,” the Daily Mail reported. People in Germany, Ukraine and even Canada and the United States have reported hearing the sounds, leaving many to speculate whether a heavenly signal is being blown from above.
The Bible provides various signs as to the beginning of the Messianic era and the End of Days. However, one such sign, or rather sound, will herald in his final arrival and signal to the nations God’s ultimate kingship – the shofar, or ram’s horn.
Today, a tourist who goes to the Yochanan Ben Zakai Synagogue in Jerusalem will notice something very unusual. High up, on an inaccessible glass shelf, is a flask of oil and a shofar. The two items look incongruous – too high to be viewed by the public and unreachable for practical use. Yet, they serve an important purpose.
The special oil and shofar are waiting for the arrival of the Messiah, where they will play a role in greeting and anointing him, just as every Jewish king in history has been greeted – with the sound of the shofar and doused in oil sanctified for that purpose (1 Kings 1).
The shofar is traditionally blown in the days leading up to the Jewish New Year of Rosh Hashana and on the days of the holiday itself. The Hebrew month of Elul, which began on the eve of August 14, begins a month-long process of repentance leading into Rosh Hashana and Yom Kippur.
The shofar serves as a piercing reminder to the soul of His kingship and acts as a wake-up call for repentance. Jews around the world sound the shofar every morning for 30 days of Elul and then 10 additional days during the Days of Awe. The origin of blowing the shofar as a form of repentance goes back to Moses ascending Mt.Sinai for 40 days before bringing the Torah down to Israel.
The Biblical significance of and the ancestral connection to the shofar serves as a reminder of personal service to God. The piercing sound of the ram’s horn is a wakeup call to the nations to seek out God and inwardly repent, an essential element to the ultimate arrival of the Messiah.

image: http://www.breakingisraelnews.com/wp-content/uploads/2014/05/sholom-goren-six-day-war-western-wall-shofar.jpg
Chief Military Rabbi Shlomo Goren at the Western Wall in 1967 shortly after the liberation of Jerusalem. (Photo: Wiki Commons)
Chief Military Rabbi Shlomo Goren at the Western Wall in 1967 shortly after the liberation of Jerusalem. (Photo: Wiki Commons)

The shofar’s origin is attributed to the binding of Isaac, when Abraham’s love of God was tested against the love of his son. At the last moment, an angel stayed his hand, and in place, a ram was substituted instead (Genesis 22:13). The site of the altar is, according to Jewish tradition, the site of the Holy Temple, where the ram appeared again as a sacrifice and its horns were used as shofarot in the Temple service.
The primal horn, limited to one note, played a significant role in the Temple service, and the sounds of many shofarot blown simultaneously was heard on every holy day. It is interesting to note that in the Temple, which used gold, silver, and precious gems extensively, adorning a shofar made it unsuitable for use. The sound, as well as the Shofar itself, had to be a simple crying out to God.
The importance of the shofar and its connection to the Holy Temple was exemplified during the 1967 Six Day War. Chief Rabbi of the IDF Shlomo Goren carried a Torah scroll and shofar to the Western Wall following the liberation of Jerusalem from Jordanian rule. The moment, captured in an iconic photo, was the first time a shofar had been blown and heard in the heart of Jerusalem in hundreds of years.
Blowing the shofar in celebration of liberating Jerusalem served two purposes: a shofar always goes before the Nation of Israel in battle (Numbers 10:9) and, as Rabbi Goren explained later, unifying Jerusalem was part of the Messianic process, therefore requiring the blowing of a shofar.
Credit to breakingisraelnews.com
Read more at http://www.breakingisraelnews.com/47020/mysterious-trumpet-sounds-world-leaves-manyhope-messiahs-arrival-jewish-world/#gIPo3lq3vx4U2YcR.99

URGENT: "Mysterious Acid Foam Rain" China

US - Russia Nuclear War more likely than ever before

Image result for ww3


US military buildup in Eastern Europe over Ukraine’s conflict with Russia is increasing the probability of a destructive nuclear war between Washington and Moscow, an author and analyst in Chicago says.

“The chance for a US military confrontation with Russia just grows and intensifies,” Stephen Lendman told Press TV on Saturday.

“These two countries have maybe 95 percent of the world’s nuclear weapons with delivery systems that can hit targets with pinpoint accuracy anywhere on the planet,” Lendman said.

A series of secret war games over the summer has raised concerns inside the Pentagon that US forces are not prepared for a sustained military campaign against Russia, The Daily Beast reports, citing defense officials.

The outgoing US Army chief of staff, General Ray Odierno, said Wednesday that Russia is the top military threat to the United States.

The general said the US had to increase its ability to move quickly to the region if needed, and increase interoperability with other NATO forces to counter Russia’s “aggression.”

“America already spends more for militarism and war making than all other countries in the world combined,” Lendman said. “And yet the generals and admirals all the time want more money for more war making and more imperial marauding around the world, and Russia is seen as America’s number one existential threat.”

He blamed Washington’s policies for the growing tensions with Moscow. “Russia wants peace and stability again; America wants endless wars.”

“I am scared for the first time of my life that a war can happen between these two countries which would mean a nuclear war and utter devastation,” he stressed.

An American military report released last month has warned of a growing probability of the United States fighting a war with a major power, Russia or China, with “immense” consequences.

The report released by General Martin Dempsey, the chairman of the Joint Chiefs of Staff, singles out Russia and China as aggressive countries and a threat to US security interests.

The study points to the alleged presence of Russian troops in Ukraine as a source of tension between Washington and Moscow.

Relations between the United States and Russia are at their lowest point since the end of the Cold War in 1991, largely due to the crisis in Ukraine.

The US and its allies accuse Moscow of sending troops into eastern Ukraine in support of the pro-Russian forces. Moscow has long denied involvement in Ukraine’s crisis.

Credit to eutimes.net

http://www.eutimes.net/2015/08/us-russia-nuclear-war-more-likely-than-ever-before/



Demolition of homeless camp in California

Is The New U.S. 'Law Of War Manual' Actually ‘Hitlerian'?

 Image result for hitler usa
Submitted by Eric Zuesse, author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of Christ's Ventriloquists: The Event that Created Christianity
Is the New U.S. 'Law of War Manual' Actually ‘Hitlerian'?
The Obama U.S. Department of Defense (DoD) has quietly issued its important Law of War Manual, and, unlike its predecessor, the 1956 U.S. Army Field Manual, which was not designed to approve of the worst practices by both the United States and its enemies in World War II, or after 9/11, this new document has been alleged specifically to do just that: to allow such attacks as the United States did on Dresden, Hiroshima, and Nagasaki, and in Iraq, and elsewhere. 
First here will be a summary of previous news reports about this historically important document; then, extensive quotations from the actual document itself will be provided, relating to the allegations in those previous news reports. Finally will be conclusions regarding whether, or the extent to which, those earlier news reports about it were true.
EARLIER REPORTS ABOUT THE MANUAL:
The document was first reported by DoD in a curt press release on June 12th, with a short-lived link to the source-document, and headlined, “DoD Announces New Law of War Manual.” This press release was published and discussed only in a few military newsmedia, not in the general press.
The document was then anonymously reported on June 25th, at the non-military site, under the headline, "The USA writes their own version of 'International Law’: Pentagon Rewrites ‘Law of War’ Declaring ‘Belligerent’ Journalists as Legitimate Targets.”
That news article attracted some attention from journalists, but no link was provided to the actual document, which the U.S. DoD removed promptly after issuing it.
A professor of journalism was quoted there as being opposed to the document’s allegedly allowing America’s embedded war journalists to kill the other side’s journalists. He said: "It gives them license to attack or even murder journalists that they don’t particularly like but aren’t on the other side.” 
Patrick Martin at the World Socialist Web Site, then headlined on August 11th, “Pentagon manual justifies war crimes and press censorship,” and he reported that the Committee to Protect Journalists was obsessed with the document’s implications regarding journalists. 
Then, Sherwood Ross headlined at opednews on August 13th, "Boyle: New Pentagon War Manual Reduces Us to 'Level of Nazis’,” and he interviewed the famous expert on international law, Francis Boyle, about it, who had read the report. Ross opened: "The Pentagon's new Law of War Manual(LOWM) sanctioning nuclear attacks and the killing of civilians, 'reads like it was written by Hitler's Ministry of War,' says international law authority Francis Boyle of the University of Illinois at Champaign.” Ross continued: "Boyle points out the new manual is designed to supplant the 1956 U.S. Army Field Manual 27-10 written by Richard Baxter, the world's leading authority on the Laws of War. Baxter was the Manley O. Hudson Professor of Law at Harvard Law School and a Judge on the International Court of Justice. Boyle was his top student.”
The document is 1,204 pages. Here the general public can see the document and make their own judgments about it. What follows will concern specifically the claims about it that were made in those prior news articles, and will compare those claims with the relevant actual statements in the document itself. Reading what the document says is worthwhile, because its predecessor, the Army Field Manual, became central in the news coverage about torture and other Bush Administration war-crimes.
THE DOCUMENT:
First of all, regarding “journalists,” the document, in Chapter 4, says: "4.24.2 Journalists and other media representatives are regarded as civilians;471 i.e., journalism does not constitute taking a direct part in hostilities such that such a person would be deprived of protection from being made the object of attack.472.” Consequently, the journalism professor’s remark is dubious, at best, but probably can be considered to be outright false.
The charge by the international lawyer, Professor Boyle, is a different matter altogether.
This document says, in Chapter 5: “5.3.1 Responsibility of the Party Controlling Civilian 5.3.1 Persons and Objects. The party controlling civilians and civilian objects has the primary responsibility for the protection of civilians and civilian objects.13[13 See  J. Fred Buzhardt, DoD General Counsel, Letter to Senator Edward Kennedy, Sept. 22, 1972. …] The party controlling the civilian population generally has the greater opportunity to minimize risk to civilians.14[14  FINAL  REPORT ON  THE PERSIAN  GULF  WAR  614. …] Civilians also may share in the responsibility to take precautions for their own protection.15[15 U.S. Comments on the International Committee of the Red Cross’s Memorandum on the Applicability of International Humanitarian Law in the Gulf Region, Jan. 11, 1991. …]” This is directly counter to what Professor Boyle was alleged to have charged about the document.
The document continues: "5.3.2 Essentially Negative Duties to Respect Civilians and to Refrain From Directing Military Operations Against Them. In general, military operations must not be directed against enemy civilians.16 In particular:
• Civilians must not be made the object of attack;17
• Military objectives may not be attacked when the expected incidental loss of life and injury to civilians or damage to civilian objects would be excessive in relation to the concrete and direct military advantage expected to be gained;18
• Civilians must not be used as shields or as hostages;19 and
• Measures of intimidation or terrorism against the civilian population are prohibited, including acts or threats of violence, the primary purpose of which is to spread terror among the civilian population.20"
Furthermore: “5.3.3 Affirmative Duties to Take Feasible Precautions for the Protection of Civilians and Other Protected Persons and Objects. Parties to a conflict must take feasible precautions to reduce the risk of harm to the civilian population and other protected persons and objects.27 Feasible precautions to reduce the risk of harm to civilians and civilian objects must be taken when planning and conducting attacks.28”
Moreover: "5.5.2 Parties to a conflict must conduct attacks in accordance with the principles of distinction and proportionality. In particular, the following rules must be observed:
• Combatants may make military objectives the object of attack, but may not direct attacks against civilians, civilian objects, or other protected persons and objects.66
• Combatants must refrain from attacks in which the expected loss of life or injury to civilians, and damage to civilian objects incidental to the attack, would be excessive in relation to the concrete and direct military advantage expected to be gained.67
• Combatants must take feasible precautions in conducting attacks to reduce the risk of harm to civilians and other protected persons and objects.68
• In conducting attacks, combatants must assess in good faith the information that is available to them.69
• Combatants may not kill or wound the enemy by resort to perfidy.70
• Specific rules apply to the use of certain types of weapons.71”
In addition: "5.5.3.2 AP I Presumptions in Favor of Civilian Status in Conducting Attacks. In the context of conducting attacks, certain provisions of AP I reflect a presumption in favor of civilian status in cases of doubt. Article 52(3) of AP I provides that ‘[i]n case of doubt whether an object which is normally dedicated to civilian purposes, such as a place of worship, a house or other dwelling or a school, is being used to make an effective contribution to military actions, it shall be presumed not to be so used.’76 Article 50(1) of AP I provides that ‘[i]n case of doubt whether a person is a civilian, that person shall be considered to be a civilian.’”
Then, there is this: "5.15 UNDEFENDED CITIES, TOWNS, AND VILLAGES. Attack, by whatever means, of a village, town, or city that is undefended is prohibited.360 Undefended villages, towns, or cities may, however, be captured.”
Furthermore: "5.17 SEIZURE AND DESTRUCTION OF ENEMY PROPERTY. Outside the context of attacks, certain rules apply to the seizure and destruction of enemy property:
• Enemy property may not be seized or destroyed unless imperatively demanded by the necessities of war.”
These features too are not in accord with the phrase 'reads like it was written by Hitler's Ministry of War.’
However, then, there is also this in Chapter 6, under “6.5 Lawful Weapons":
"6.5.1 Certain types of weapons, however, are subject to specific rules that apply to their use by the U.S. armed forces. These rules may reflect U.S. obligations under international law or national policy. These weapons include:
• mines, booby-traps, and other devices (except certain specific classes of prohibited mines, booby-traps, and other devices);38
• cluster munitions;39
• incendiary weapons;40
• laser weapons (except blinding lasers);41
• riot control agents;42
• herbicides;43
• nuclear weapons; 44 and
• explosive ordnance.45
6.5.2 Other Examples of Lawful Weapons. In particular, aside from the rules prohibiting weapons calculated to cause superfluous injury and inherently indiscriminate weapons,46 there are no law of war rules specifically prohibiting or restricting the following types of weapons by the U.S. armed forces: …
• depleted uranium munitions;51”
Mines, cluster munitions, incendiary weapons, herbicides, nuclear weapons, and depleted uranium munitions, are all almost uncontrollably violative of the restrictions that were set forth in Chapter 5, preceding.
There are also passages like this:
"6.5.4.4 Expanding Bullets. The law of war does not prohibit the use of bullets that expand or flatten easily in the human body. Like other weapons, such bullets are only prohibited if they are calculated to cause superfluous injury.74 The U.S. armed forces have used expanding bullets in various counterterrorism and hostage rescue operations, some of which have been conducted in the context of armed conflict.
The 1899 Declaration on Expanding Bullets prohibits the use of expanding bullets in armed conflicts in which all States that are parties to the conflict are also Party to the 1899 Declaration on Expanding Bullets.75 The United States is not a Party to the 1899 Declaration on Expanding Bullets, in part because evidence was not presented at the diplomatic conference that expanding bullets produced unnecessarily severe or cruel wounds.76”
The United States still has not gone as far as the 1899 Declaration on Expanding Bullets. The U.S. presumption is instead that expanding bullets have not “produced unnecessarily severe or cruel wounds.” This is like George W. Bush saying that waterboarding, etc., aren’t “torture.” The document goes on to explain that, "expanding bullets are widely used by law enforcement agencies today, which also supports the conclusion that States do not regard such bullets are inherently inhumane or needlessly cruel.81” And, of course, the Republicans on the U.S. Supreme Court do not think that the death penalty is either “cruel” or “unusual” punishment. Perhaps Obama is a closeted Republican himself.
The use of depleted uranium was justified by an American Ambassador’s statement asserting that, “The environmental and long-term health effects of the use of depleted uranium munitions have been thoroughly investigated by the World Health Organization, the United Nations Environmental Program, the International Atomic Energy Agency, NATO, the Centres for Disease Control, the European Commission, and others. None of these inquiries has documented long-term environmental or health effects attributable to use of these munitions.”
However, according to Al Jazeera’s Dahr Jamail, on 15 March 2013: "Official Iraqi government statistics show that, prior to the outbreak of the First Gulf War in 1991, the rate of cancer cases in Iraq was 40 out of 100,000 people. By 1995, it had increased to 800 out of 100,000 people, and, by 2005, it had doubled to at least 1,600 out of 100,000 people. Current estimates show the increasing trend continuing. As shocking as these statistics are, due to a lack of adequate documentation, research, and reporting of cases, the actual rate of cancer and other diseases is likely to be much higher than even these figures suggest.” If those figures are accurate, then the reasonable presumption would be that depleted uranium should have been banned long ago. Continuing to assert that it’s not as dangerous a material as people think it is, seems likely to be based on cover-up, rather than on science. Until there is proof that it’s not that toxic, the presumption should be that it must be outlawed.
Finally, though the press reports on this document have not generally focused on the issue of torture, it’s worth pointing out what the document does say, about that:
“5.26.2 Information Gathering. The employment of measures necessary for obtaining information about the enemy and their country is considered permissible.727
Information gathering measures, however, may not violate specific law of war rules.728
For example, it would be unlawful, of course, to use torture or abuse to interrogate detainees for purposes of gathering information.”
And: “9.8.1 Humane Treatment During Interrogation. Interrogation must be carried out in a manner consistent with the requirements for humane treatment, including the prohibition against acts of violence or intimidation, and insults.153
No physical or mental torture, nor any other form of coercion, may be inflicted on POWs to secure from them information of any kind whatever.154 POWs who refuse to answer may not be threatened, insulted, or exposed to unpleasant or disadvantageous treatment of any kind.155
Prohibited means include imposing inhumane conditions,156 denial of medical treatment, or the use of mind-altering chemicals.157”
Those provisions would eliminate George W. Bush’s ‘justification’ for the use of tortures such as waterboarding, and humiliation. 
Furthermore: “8.2.1 Protection Against Violence, Torture, and Cruel Treatment. Detainees must be protected against violence to life and person, in particular murder of all kinds, mutilation, cruel treatment, torture, and any form of corporal punishment.29”  
Therefore, even if Bush’s approved forms of torture were otherwise allowable under Obama’s new legal regime, some of those forms, such as waterboarding, and even “insults,” would be excluded by this provision.
Moreover: “8.2.4 Threats to Commit Inhumane Treatment. Threats to commit the unlawful acts described above (i.e., violence against detainees, or humiliating or degrading treatment, or biological or medical experiments) are also prohibited.37”
And: “8.14.4.1 U.S. Policy Prohibiting Transfers in Cases in Which Detainees Would Likely Be Tortured. U.S. policy provides that no person shall be transferred to another State if it is more likely than not that the person would be tortured in the receiving country.”
Therefore, specifically as regards torture, the Obama system emphatically and clearly excludes what the Bush interpretation of the U.S. Army Field Manual  allowed.
CONCLUSIONS:
What seems undeniable about the Law of War Manual, is that there are self-contradictions within it. To assert that it "reads like it was written by Hitler's Ministry of War,” is going too far. But, to say that it’s hypocritical (except, perhaps, on torture, where it’s clearly a repudiation of GWB’s practices), seems safely true.
This being so, Obama’s Law of War Manual  should ultimately be judged by Obama’s actions as the U.S. Commander in Chief, and not merely by the document’s words. Actions speak truer than words, even if they don’t speak louder than words (and plenty of people still think that Obama isn’t a Republican in ‘Democratic’ verbal garb: they’re not tone-deaf, but they surely are action-deaf; lots of people judge by words not actions). For example: it was Obama himself who arranged the bloody coup in Ukraine and the resulting necessary ethnic cleansing there in order to exterminate or else drive out the residents in the area of Ukraine that had voted 90+% for the Ukrainian President whom Obama’s people (via their Ukrainian agents) had overthrown. Cluster bombs, firebombs, and other such munitions have been used by their stooges for this purpose, that ethnic cleansing: against the residents there. Obama has spoken publicly many times defending what they are doing, but using euphemisms to refer to it. He is certainly behind the coup and its follow-through in the ethnic cleansing, and none of it would be happening if he did not approve of it. Judging the mere words of Obama’s Law of War Manual  by Obama’s actions (such as in Ukraine, but also Syria, and Libya) is judging it by how he actually interprets it, and this technique of interpreting the document provides the answer to the document’s real meaning. It answers the question whenever there are contradictions within the document (as there indeed are).
Consequently, what Francis Boyle was reported to have said is, in the final analysis, true, at least in practical terms — which is all that really counts — except on torture, where his allegation is simply false.
Obama’s intent, like that of anyone, must be drawn from his actions, his decisons, not from his words, whenever the words and the actions don’t jibe, don’t match. When his Administration produced its Law of War Manual, it should be interpreted to mean what his Administration has done and is doing, not by its words, wherever there is a contradiction between those two.
This also means that no matter how much one reads the document itself, some of what one is reading is deception if it’s not being interpreted by, and in the light of, an even more careful reading of Obama’s relevant actions regarding the matters to which the document pertains.
Otherwise, the document is being read in a way that confuses its policy statements with its propaganda statements.
Parts of the document are propaganda. The purpose isn’t to fool the public, who won’t read the document. The purpose of the propaganda is to enable future presidents to say, “But if you will look at this part of the Manual, you will see that what we are doing is perfectly legal.” Those mutually contradictory passages are there in order to provide answers which will satisfy both  the ‘hawks’ and  the ‘doves.’
Credit to Zero Hedge


Tuesday, August 18, 2015

American Malls In Meltdown....The Economic Recovery Is Complete Fraud


Image result for American Malls In closed


The government issued their monthly retail sales this past week and four of the biggest department store chains in the country announced their quarterly results. The year over year retail sales increase of 2.4% is pitifully low in an economy that is supposedly in its sixth year of economic growth with a reported unemployment rate of only 5.3%. If all of these jobs have been created, why aren’t retail sales booming?
The year to date numbers are even worse than the year over year numbers. With consumer spending accounting for 70% of our GDP and real inflation running north of 5%, it’s pretty clear most Americans are experiencing a recession, despite the propaganda data circulated by the government and Fed. The only people not experiencing a recession are corporate executives enriching themselves through stock buybacks, Wall Street bankers using free Fed Bucks while rigging the the markets in their favor, politicians and government bureaucrats reaping their bribes from billionaire oligarchs, and the media toadies who dispense the Deep State approved propaganda to keep the ignorant masses dazed, confused, and endlessly distracted by Cecil the Lion, Bruce/Caitlyn Jenner, Ferguson, and blood coming out of whatever.
You won’t hear CNBC, Bloomberg, the Wall Street Journal or any corporate mainstream media outlet reference the fact retail sales growth is at the exact same levels as when recession hit in 2008 and 2001. Their job is to regurgitate the message of economic recovery and confidence in the future, despite overwhelming evidence to the contrary.
Retail sales are actually far worse than the 2.4% reported number. Excluding the subprime debt fueled auto sales, retail sales only grew by 1.3% in the last year. The automakers are practically giving vehicles away as their lots are stuffed with inventory. The length of auto loans and the average amount of auto loans are now at all-time highs. The percentage of subprime auto loans is surging to record levels, as defaults begin to rise. The percentage of vehicles being leased is also at an all-time high. To call these “auto sales” strains credibility. These people are either perpetually renting their vehicles or just driving them until the repo man shows up.

The relatively strong year over year furniture sales is also driven by the fact that you can finance the purchase at 0% interest for seven years. All is well for the Ally Financial, GE Capital and the myriad of fly by night subprime lenders until the recession arrives, unemployment soars, and defaults skyrocket. Then their bloated debt ridden balance sheets will explode in an avalanche of defaults. That’s when they insist on another taxpayer bailout to “save the financial system”.
The year over year crash in oil prices was supposed to result in a huge spending splurge by the masses, according to the media talking heads. You don’t hear much about that storyline anymore. The talking heads are now worried that oil prices are too low. I guess the tens of thousands of layoffs in the oil industry and the obliteration of the Wall Street financed shale oil fraud storyline is offsetting the $10 per week in gasoline savings for the average driver.

Image result for American Malls In closed
At least restaurant and bar sales remain strong. It seems Americans have decided to eat, drink and be merry, for tomorrow they die. I do believe there is some truth to that saying in today’s world. I think people are drowning their sorrows by drinking and eating. They’ve drastically reduced buying stuff they don’t need with money they don’t have. Spending their gas savings at a restaurant or bar is still doable.
With real median household income at 1989 levels, real unemployment north of 15%, a massive level of under-employment, young people unable to buy a home – saddled with $1 trillion of student loan debt, middle aged parents struggling to take care of their aging parents and struggling children, and Boomers who never saved for their retirement, the mood of the country is decidedly dark and getting darker by the day. The rise of Trump and Sanders in the polls is an indication of this dissatisfaction with the existing social order.
The part of the retail report flashing red is the sales of General Merchandise stores, and particularly department stores. This category includes the likes of Wal-Mart, Target, Costco, Sears, Macy’s, Kohls, and JC Penney. General merchandise sales fell 0.5% in July, with Department store sales dropping by 0.8%. Sales at these behemoth retailers have barely budged in the last year, with overall sales up a dreadful 0.3%. The dying department stores have seen their sales plummet by 2.7%. The talk of a retail revival is dead on arrival. Wal-Mart and Target muddle on with lackluster results, while JC Penney and Sears continue their Bataan Death March towards the retail graveyard.
The false narrative of economic recovery can be blown to smithereens by the historical data on the Census Bureau website. Their time series data goes back to 1992. GDP has supposedly risen by 22% since 2007. General merchandise sales were $48.4 billion in July 2007. They were $56.1 billion in July 2015. That’s a 15.9% increase in eight years. Even the manipulated and massaged BLS CPI figure has increased 14.5% over this same time frame. That means that REAL retail sales at the nation’s biggest retailers has been virtually flat for the last eight years. Does that happen during an economic recovery?
Image result for American Malls In closed

The department store data is almost beyond comprehension. July department store sales were the lowest in the history of the data series. Sales of $13.8 billion were 22% below the July 2007 level of $17.6 billion. They were 28% below the peak level of $19.2 billion in 1999. Real department store sales are 36.5% BELOW where they were in 2007, and Wall Street shysters have had buy ratings on these stocks the whole way down. These worthless hucksters remove the buy rating the day before these dinosaur department stores declare bankruptcy. Excluding the debt driven auto sales, real retail sales are flat with 2008 levels.
The data from the Census Bureau has been more than confirmed by the absolutely atrocious financial results reported by Macy’s, Kohls, Sears and J.C. Penney. Retailers do not report results this poor during economic recoveries. The results clearly point to an ongoing recession for the middle and lower classes who do the majority of working and spending in this country. The rich continue to spend their stock market winnings at exclusive boutiques and high end retailers like Nordstrom, but the average American is being sucked into the abyss by rising food prices, rent, home prices, tuition, and the Obamacare driven health insurance and medical costs. With declining real wages, they have less and less disposable income to spend buying cheap Chinese crap at their local mall department stores.
Here is a glimpse into the results of department store dinosaurs headed towards extinction:

Macy’s

  • Overall sales fell 2.6%, while comparable store sales fell by 2.1%, as Macy’s continues to close under-performing stores. News flash: there are many more stores to close.
  • Profits crashed by 25.7% as gross margins declined and expenses rose.
  • Cash flow from operations has declined by a staggering 46% in the first six months of this year.
  • The bozos running this sinking retailer have mind bogglingly burned through $787 million of cash, while adding $452 million in long term debt to buyback their own stock. Executive compensation is stock based, so wasting close to $1.6 billion in the last year as sales and profits fall, is considered prudent management by the CEO.
  • Despite falling sales, the management of this sinking ship have increased inventory by $200 million in the last year. This bodes well for margins in the second half of the year.
  • The long-term future for this retailer gets bleaker by the day as their long-term debt, pension liabilities, and other long term obligations total $10.4 billion, while their declining stockholder’s equity totals $4.8 billion.
  • To show you how far Macy’s has come in the last nine years you just need to compare their results from the 2nd quarter of 2006 to today. They registered sales of $6.0 billion versus $6.1 billion today. On a real, inflation adjusted basis, their sales have fallen by 16% over the nine year period. They had profits of $317 million in 2006, 46% more than the $217 million in the 2nd quarter of 2015. They had $13.6 billion of equity and $8.2 billion of long-term debt.
  • And now for the best part. Despite generating 46% less income than they did 9 years ago, Macy’s stock sits at $63 per share, while it traded at $36 per share in 2006. A company with declining revenue, declining profits and a bleak future should not be sporting a PE ratio of 16. When this recession really takes hold, their 2009 price level of $9 per share will be challenged on its way to Radio Shack land – $0 per share.

Image result for macy's close


Kohl’s

  • Overall sales were up a pathetic 0.6% after last year’s 2nd quarter sales were lower than 2013. Comp store sales were up only 0.1% after being down 1.3% the previous year.
  • Profits fell precipitously by a mere 44% versus the prior year, down by $102 million. Margins fell while expenses rose.
  • In the lemming like behavior of corporate CEOs across the land, this struggling retailer thought it was a brilliant idea to go $330 billion further into debt, while buying back $543 million of stock in the first six months.
  • While sales are essentially flat, the executives of this company ratcheted up their inventory levels by 9% in the last year. Flat sales growth and surging inventory levels leads to plunging margins and profits. I guess that’s why I got a 30% off everything coupon in the mail last week.
  • Cash from operations has crashed by 52% in the first six months. You would think prudent executives would be using a half a billion of cash to buy stock and boost their compensation packages.
  • Another comparison to yesteryear provides some perspective on how well Kohl’s is performing. During the 2nd quarter of 2007 they generated $3.6 billion of sales and $269 million of profits. Their overall sales are up 19% (3% on a real basis) even though they have increased their store base by 38%. Profits in 2015 were 52% lower than 2007.
  • Sales per store is 14% lower today than it was in 2007. And even more worrisome for their long term survival, inventory levels are up 59% compared to the 19% increase in sales.
  • Again, the stock price peaked in 2007 at $76 and earlier this year reached a new all-time high of $79. Despite deteriorating financial conditions, poor management, plunging cash levels, and nothing on the horizon to portend a turnaround, the stock trades at a PE ratio of 13.

Sears

  • Sears hasn’t reported their 2nd quarter results yet, but pre-announced that same store sales crashed by 10.6% versus last year. They are truly dead retailer walking, as Eddie Lampert’s real estate maneuvers attempt to hide the coming bankruptcy from unsuspecting investors is nothing but smoke and mirrors perpetuated by Eddie and his Wall Street shyster bankers. Excluding his desperate real estate schemes, they will lose another $300 million.
  • In the last four years, during an economic recovery, Sears has seen their sales crater from $43 billion to $31 billion, and still falling. They have managed to lose $7.4 billion in just over four years and their stock still trades at $25 per share – proving there is a sucker born every minute.
  • They continue to close hundreds of stores and still can’t stop the hemorrhaging. The decade of using financial gimmicks rather than investing in his stores  is coming home to roost for Eddie “the next Warren Buffett” Lampert. Of course, he will arrange matters in a way where he wins, while the stockholders lose when the bankruptcy papers are filed.
  • The balance sheet is a disaster. They have generated a Negative cash flow from operations of $1.4 billion in the last twelve months. They have burned through $556 million of cash. They have $8.4 billion of long-term debt and other liabilities, with equity of NEGATIVE $1.2 billion.
  • Sears may be the worst run business in America, and its chances of going bankrupt are 100%, but the Wall Street hype machine has its stock price at $25 per share, 20% higher than it was in late 2008. For some perspective, Sears’ 2nd quarter 2008 revenues totaled $11.8 billion and they made a $65 million profit. Sales in the 2nd quarter of 2015 will be approximately $6 billion with a loss of at least $300 million. Of course their stock should be higher.
Image result for sears close

J.C. Penney

  •  I found it humorous to see the Wall Street hucksters and their mainstream media mouthpieces cheering on the J.C. Penney 2nd quarter results as “better than expected” and proof they have turned the corner. Their overall sales went up by 2.7% and comp store sales went up by 4.1%, as they continue to close stores. For some perspective on this tremendous sales gain to $2.9 billion, their sales in the 2nd quarter of 2009 were $3.9 billion. When your sales are still 26% below where they were six years ago, maybe you shouldn’t be crowing too much.
  • It seems Wall Street and the MSM didn’t really want to focus on the only thing that matters – profits. They lost another $138 million and have racked up $305 million of losses so far this year. They have lost money for 13 consecutive quarters. That is no easy feat. They have managed to lose $3.6 billion in the last four and a half years, while driving their annual sales from $18 billion to $12 billion.
  • Their balance sheet isn’t as horrific as Sears’, but it is nothing to write home about. They have $6.2 billion of long-term debt and other liabilities, supported by a mere $1.6 billion of equity. Back in 2011 they had $5.5 billion of equity to support $4.9 billion of long term liabilities. The deterioration of this once proud retailer is clear to anyone with two eyes and a brain. So that eliminates all CNBC pundits and guests.
  • Wall Street pumped the stock 5% higher on Friday to celebrate their $138 million loss. A company that is on track to lose $500 million has seen its stock price rise 32% this year on hopes and dreams. Wall Street has had buy ratings on this stock from its peak of $82 per share in 2007 on its 90% downward path to its current price. I’m sure they’re right this time.
Image result for JC penney close

The truly disturbing revelation from the Census Bureau data and the terrible financial results being reported by some of the biggest retailers in the world is that it is occurring with unemployment at 5.3%, the economy in the sixth year of a recovery, and a Fed who has pumped $3 trillion into the banking system while still keeping interest rates at 0%. What happens when we roll back into the next official recession, unemployment soars, and consumers really stop spending?
What is revealed when you look under the hood of this economic recovery is that it is a complete and utter fraud. The recovery is nothing but smoke and mirrors, buoyed by subprime auto debt, really subprime student loan debt, corporate stock buybacks, and Fed financed bubbles in stocks, real estate, and bonds. The four retailers listed above are nothing but zombies, kept alive by the Fed’s ZIRP and QE, as they stumble towards their ultimate deaths. The coming recession will be the knife through their skulls, putting them out of their misery.
“Retail chains are a fundamentally implausible economic structure if there’s a viable alternative. You combine the fixed cost of real estate with inventory, and it puts every retailer in a highly leveraged position. Few can survive a decline of 20 to 30 percent in revenues. It just doesn’t make any sense for all this stuff to sit on shelves.”
Marc Andreessen
Credit to Zero Hedge