Austrian Chancellor Unleashes on Multinational Globalists: Sausage Stands Pay More Taxes Than Google, Facebook, Starbucks and Amazon

Most people I know are outraged over the EU fining Apple for back taxes. But there’s another side to the story, one that involves insidiously fucked up global titans who slosh money around from country to country, never repatriating back to their home country, all in an effort to avoid paying any taxes. While the EU decision was stupid and punitive, the action by Apple to keep over $200 billion overseas in order to AVOID paying U.S. taxes is equally stupid and also absurd.

The Chancellor of Austria unleashed a tirade against a handful of American companies, who are profiting handsomely in his country, tax free.

Multinationals like coffee chain Starbucks (SBUX.O) and online retailer Amazon (AMZN.O) pay less tax in Austria than one of the country’s tiny sausage stands, the republic’s center-left chancellor lamented in an interview published on Friday.

Chancellor Christian Kern, head of the Social Democrats and of the centrist coalition government, also criticized internet giants Google (GOOGL.O) and Facebook (FB.O), saying that if they paid more tax subsidies for print media could increase.

“Every Viennese cafe, every sausage stand pays more tax in Austria than a multinational corporation,” Kern was quoted as saying in an interview with newspaper Der Standard, invoking two potent symbols of the Austrian capital’s food culture.

“That goes for Starbucks, Amazon and other companies,” he said, praising the European Commission’s ruling this week that Apple (AAPL.O) should pay up to 13 billion euros ($14.5 billion) in taxes plus interest to Ireland because a special scheme to route profits through that country was illegal state aid.

Kern criticized EU states with low-tax regimes that have lured multinationals – and come under scrutiny from Brussels.

“What Ireland, the Netherlands, Luxembourg or Malta are doing here lacks solidarity towards the rest of the European economy,” he said.

He stopped short of saying that Facebook and Google would have to pay more tax but underlined their significant sales in Austria, which he estimated at more than 100 million euros each, and their relatively small numbers of employees – a “good dozen” for Google and “allegedly even fewer” for Facebook.

“They massively suck up the advertising volume that comes out of the economy but pay neither corporation tax nor advertising duty in Austria,” said Kern, who became chancellor in May.

A great man once said, ‘the world is yours for a season.’ As it happens, the bulls stole the summer, slumbered for the past month with it, and closed out the month of August on a high note. Although the indices have been uncorked flat, there have been gauche returns in a sundry of sectors. If you made a living by shorting stocks, you were slammed into the sausage machine and ground out since March.

The ravenous elections loom over the heads of just about everyone. Expect the rhetoric to reach a fevered pitch. The didactic method by which we’re funneled into the election booths embody a faux priggishness that I am often guilty of myself. I sometimes chuckle at my self-righteous outrage, when discussing the topics of the day, as I am a fallible person, one with several low traits. But I try my best and I sometimes get it right.

With the finite time we have here, I might as well make mines count.

There is a dynamism to the voodoo that I publish here, at least I like to think that. Fifty percent of you are pissed off at me for ignoring trades and discussing topics unrelated to the art of making money. Chill, this too shall pass.

The sinuous paths that I’ve taken with iBankCoin since inception is what makes us unique, relevant and profitable. The growth and prosperous nature of the site can be attributed to a malleability that others have resisted, much to their chagrin. The landscape of financial blogging has changed, measurably, since I began my journey in 2006. Having my ears to the rails, I sense another shift coming, one that fully embodies the populism that is sweeping America, and the world. I’m all about the culture wars, always have been and always will be. Social graces dictate that a website, such as iBankCoin, should comport itself like the top hatted gentlemen they profess to be. But, every once in a while, the sleeves need to get rolled up and people need to get knocked out (extra Deebo).

Enjoy the long weekend. Some of you have earned it.

Unfortunately, a great lot of you will behave in a ribald manner, booze hounding and prattling on about topics that cause others to recoil with disgust. Man is mostly a barbarous, garrulous creature–bobbing and weaving throughout time like muppets high off cocaine leaves. Talking potatoes, most of you are.

With that said, Le Fly departs for afternoon festivities.

Cheers

Without equi

Markets are at record highs and hedge funds need to allocate funds. Because of size restrictions, much of the money is funneled into a select group of stocks that are capable of handling the big buy orders, without measurably affecting prints and share price.

Here are the top performing mega caps over the past 3 mos, also known as ‘hedge fund hotels.’

This is the same paper on the same day, but in different locales.

Cool? Zoning.

American journalism.

It has been talked about for a long time that America is facing a pension fund tsunami, that stands to threaten the fabric of this economy in a very systemic way. We’re not even talking about medicare and social security shortfalls, just people working at government and municipal jobs hoping to retire in peace.

Back in April, Moody’s issued a report on this ballooning crisis.

While the United States (Aaa stable) government’s unfunded pension liabilities are significant, they are still overshadowed by the projected funding shortfalls for both the Social Security and Medicare programs, says Moody’s Investors Service.

The unfunded liabilities of the various federal employee pensions systems, covering civilian and military employee benefits, amount to about $3.5 trillion, or 20% of US GDP. Additionally, Moody’s estimates that unfunded state and local government pension plan liabilities are of the same magnitude, bringing the total shortfall to 40% of GDP.

However, historical precedent suggests that it is unlikely that the federal government will offer significant financial support for distressed state and local government pension plans. As a consequence, this portion of the liabilities only poses a small risk to the creditworthiness of the US.

The bigger challenge to the US comes from the unfunded liabilities for the Social Security and Medicare programs. The Social Security funding gap is estimated at $13.4 trillion, or 75% of GDP, while the shortfall from the Hospital Insurance component of the Medicare program amounts $3.2 trillion, or 18% of GDP.

“As the stand-alone sustainability of these two programs wanes with an aging population, Social Security and Medicare will be among the primary drivers behind a sharp widening of federal budget deficits that is expected to occur after the fiscal year 2018,” says Steven Hess, a Senior Vice President at Moody’s.

The unfunded US pension liabilities are not abnormally large when compared with other developed countries with high credit ratings, according to the report “Government of United States – Government Employee Pension Liabilities Are Moderate Compared to Social Insurance Programs.”

Canada (Aaa stable) has the lowest burden from unfunded liabilities overall (12% of GDP in 2014), after it pushed through reforms more than a decade ago. Australia (Aaa stable) now operates a primarily defined contribution pension scheme, but also has unfunded general government pension liabilities (21% of GDP) from its legacy defined benefit system. The UK (Aa1 stable) faces higher risks from its public pensions with large unfunded liabilities equal to 66% of GDP in 2014.

I’ll translate that for you. Our government has been taking money from the paychecks of its citizens, which were supposed to be earmarked for their retirement, but instead spent it on wars, welfare and wasteful projects. That’s not hyperbole, but fact. If this happened at a hedge fund or any private enterprise, it would be called fraud and the criminal sentenced to 20 years in prison.

Bill Rodgers, former economist at the Labor Dept, and Professor at Rutgers, weighs in on the jobs landscape and later touches on Fed policy, with Steve Liesman later saying the Fed might need to move with rates because of a potential systemic risk of underfunded pensions.

CALPERS, one of America’s largest pension funds with about $300 billion in assets, has about 18%-20% of their money in fixed income and about 52% in stocks.

Best case scenario, pension funds could enjoy a slighter higher return on their bond portfolios, whilst also receiving gains on the equities side of the equation. Without question, the Fed has their work cut out for them–trying to provide pensions with enough return on their bonds and also keep the market heading higher.

In March of 2016, the government released the 2015 occupational employment and wage estimates. The data in the report provides an overview of the types of jobs being created in the country. Throughout 2016, many new jobs were added to the economy. But the types of jobs being created, mainly in service and healthcare, is pretty much the same as 2015.

Out of the 135 million jobs in America, more than half of them are in these 5 industries.

Instead of delving into boring stats, I’ve taken liberties to procure the actual titles of these five booming industries. As you can see by the stats, the median hourly wages are woeful and insufficient to properly raise a family in this expensively decadent country.

This major group comprises the following occupations: First-Line Supervisors of Office and Administrative Support Workers ; Switchboard Operators, Including Answering Service ; Telephone Operators ; Communications Equipment Operators, All Other ; Bill and Account Collectors ; Billing and Posting Clerks ; Bookkeeping, Accounting, and Auditing Clerks ; Gaming Cage Workers ; Payroll and Timekeeping Clerks ; Procurement Clerks ; Tellers ; Financial Clerks, All Other ; Brokerage Clerks ; Correspondence Clerks ; Court, Municipal, and License Clerks ; Credit Authorizers, Checkers, and Clerks ; Customer Service Representatives ; Eligibility Interviewers, Government Programs ; File Clerks ; Hotel, Motel, and Resort Desk Clerks ; Interviewers, Except Eligibility and Loan ; Library Assistants, Clerical ; Loan Interviewers and Clerks ; New Accounts Clerks ; Order Clerks ; Human Resources Assistants, Except Payroll and Timekeeping ; Receptionists and Information Clerks ; Reservation and Transportation Ticket Agents and Travel Clerks ; Information and Record Clerks, All Other ; Cargo and Freight Agents ; Couriers and Messengers ; Police, Fire, and Ambulance Dispatchers ; Dispatchers, Except Police, Fire, and Ambulance ; Meter Readers, Utilities ; Postal Service Clerks ; Postal Service Mail Carriers ; Postal Service Mail Sorters, Processors, and Processing Machine Operators ; Production, Planning, and Expediting Clerks ; Shipping, Receiving, and Traffic Clerks ; Stock Clerks and Order Fillers ; Weighers, Measurers, Checkers, and Samplers, Recordkeeping ; Executive Secretaries and Executive Administrative Assistants ; Legal Secretaries ; Medical Secretaries ; Secretaries and Administrative Assistants, Except Legal, Medical, and Executive ; Computer Operators ; Data Entry Keyers ; Word Processors and Typists ; Desktop Publishers ; Insurance Claims and Policy Processing Clerks ; Mail Clerks and Mail Machine Operators, Except Postal Service ; Office Clerks, General ; Office Machine Operators, Except Computer ; Proofreaders and Copy Markers ; Statistical Assistants ; Office and Administrative Support Workers, All Other

This major group comprises the following occupations: First-Line Supervisors of Retail Sales Workers ; First-Line Supervisors of Non-Retail Sales Workers ; Cashiers ; Gaming Change Persons and Booth Cashiers ; Counter and Rental Clerks ; Parts Salespersons ; Retail Salespersons ; Advertising Sales Agents ; Insurance Sales Agents ; Securities, Commodities, and Financial Services Sales Agents ; Travel Agents ; Sales Representatives, Services, All Other ; Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products ; Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products ; Demonstrators and Product Promoters ; Models ; Real Estate Brokers ; Real Estate Sales Agents ; Sales Engineers ; Telemarketers ; Door-to-Door Sales Workers, News and Street Vendors, and Related Workers ; Sales and Related Workers, All Other

This major group comprises the following occupations: Chefs and Head Cooks ; First-Line Supervisors of Food Preparation and Serving Workers ; Cooks, Fast Food ; Cooks, Institution and Cafeteria ; Cooks, Private Household ; Cooks, Restaurant ; Cooks, Short Order ; Cooks, All Other ; Food Preparation Workers ; Bartenders ; Combined Food Preparation and Serving Workers, Including Fast Food ; Counter Attendants, Cafeteria, Food Concession, and Coffee Shop ; Waiters and Waitresses ; Food Servers, Nonrestaurant ; Dining Room and Cafeteria Attendants and Bartender Helpers ; Dishwashers ; Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop ; Food Preparation and Serving Related Workers, All Other

This major group comprises the following occupations: Aircraft Cargo Handling Supervisors ; First-Line Supervisors of Helpers, Laborers, and Material Movers, Hand ; First-Line Supervisors of Transportation and Material-Moving Machine and Vehicle Operators ; Airline Pilots, Copilots, and Flight Engineers ; Commercial Pilots ; Air Traffic Controllers ; Airfield Operations Specialists ; Flight Attendants ; Ambulance Drivers and Attendants, Except Emergency Medical Technicians ; Bus Drivers, Transit and Intercity ; Bus Drivers, School or Special Client ; Driver/Sales Workers ; Heavy and Tractor-Trailer Truck Drivers ; Light Truck or Delivery Services Drivers ; Taxi Drivers and Chauffeurs ; Motor Vehicle Operators, All Other ; Locomotive Engineers ; Locomotive Firers ; Rail Yard Engineers, Dinkey Operators, and Hostlers ; Railroad Brake, Signal, and Switch Operators ; Railroad Conductors and Yardmasters ; Subway and Streetcar Operators ; Rail Transportation Workers, All Other ; Sailors and Marine Oilers ; Captains, Mates, and Pilots of Water Vessels ; Motorboat Operators ; Ship Engineers ; Bridge and Lock Tenders ; Parking Lot Attendants ; Automotive and Watercraft Service Attendants ; Traffic Technicians ; Transportation Inspectors ; Transportation Attendants, Except Flight Attendants ; Transportation Workers, All Other ; Conveyor Operators and Tenders ; Crane and Tower Operators ; Dredge Operators ; Excavating and Loading Machine and Dragline Operators ; Loading Machine Operators, Underground Mining ; Hoist and Winch Operators ; Industrial Truck and Tractor Operators ; Cleaners of Vehicles and Equipment ; Laborers and Freight, Stock, and Material Movers, Hand ; Machine Feeders and Offbearers ; Packers and Packagers, Hand ; Gas Compressor and Gas Pumping Station Operators ; Pump Operators, Except Wellhead Pumpers ; Wellhead Pumpers ; Refuse and Recyclable Material Collectors ; Mine Shuttle Car Operators ; Tank Car, Truck, and Ship Loaders ; Material Moving Workers, All Other

This major group comprises the following occupations: Aircraft Cargo Handling Supervisors ; First-Line Supervisors of Helpers, Laborers, and Material Movers, Hand ; First-Line Supervisors of Transportation and Material-Moving Machine and Vehicle Operators ; Airline Pilots, Copilots, and Flight Engineers ; Commercial Pilots ; Air Traffic Controllers ; Airfield Operations Specialists ; Flight Attendants ; Ambulance Drivers and Attendants, Except Emergency Medical Technicians ; Bus Drivers, Transit and Intercity ; Bus Drivers, School or Special Client ; Driver/Sales Workers ; Heavy and Tractor-Trailer Truck Drivers ; Light Truck or Delivery Services Drivers ; Taxi Drivers and Chauffeurs ; Motor Vehicle Operators, All Other ; Locomotive Engineers ; Locomotive Firers ; Rail Yard Engineers, Dinkey Operators, and Hostlers ; Railroad Brake, Signal, and Switch Operators ; Railroad Conductors and Yardmasters ; Subway and Streetcar Operators ; Rail Transportation Workers, All Other ; Sailors and Marine Oilers ; Captains, Mates, and Pilots of Water Vessels ; Motorboat Operators ; Ship Engineers ; Bridge and Lock Tenders ; Parking Lot Attendants ; Automotive and Watercraft Service Attendants ; Traffic Technicians ; Transportation Inspectors ; Transportation Attendants, Except Flight Attendants ; Transportation Workers, All Other ; Conveyor Operators and Tenders ; Crane and Tower Operators ; Dredge Operators ; Excavating and Loading Machine and Dragline Operators ; Loading Machine Operators, Underground Mining ; Hoist and Winch Operators ; Industrial Truck and Tractor Operators ; Cleaners of Vehicles and Equipment ; Laborers and Freight, Stock, and Material Movers, Hand ; Machine Feeders and Offbearers ; Packers and Packagers, Hand ; Gas Compressor and Gas Pumping Station Operators ; Pump Operators, Except Wellhead Pumpers ; Wellhead Pumpers ; Refuse and Recyclable Material Collectors ; Mine Shuttle Car Operators ; Tank Car, Truck, and Ship Loaders ; Material Moving Workers, All Other

Since 2014, 520,000 waiters and bartenders were added to the ranks, while 13,000 manufacturing jobs were lost.

‘Merica.

If you were long stocks heading into today’s jobs report, what exactly are you celebrating today? Lack of Fed rate hikes? You weren’t seriously thinking that would happen in the first place. Today’s numbers were perfect, weak, but not too weak. They were so good, conspiracy theorists might surmise they were custom tailored for the markets itself.

If you take into account yesterday’s ISM numbers and today’s +151k jobs number, which was sprearheaded by bartenders and waiters, a weaker economic narrative is being painted–heading into the fall.

Markets were up more than 100, now higher by 40. The dollar, which was initially lower v the euro, is now ripping higher.

How could oil and gold be higher in the face of this strong dollar?

Fucking magic.

The Russian President, Vladimir the Impaler Putin denied having anything to do with the DNCLEAKS, which exposed fuckery largess by the Democratic Party, who were wholly intent on fucking Bernie Sanders.

It has been a straw man talking point of the DNC and Hillary Clinton to discuss the source of the leak, rather than the leak itself.

“Listen, does it even matter who hacked this data?’’ Putin said in an interview at the Pacific port city of Vladivostok on Thursday. “The important thing is the content that was given to the public.’’

“There’s no need to distract the public’s attention from the essence of the problem by raising some minor issues connected with the search for who did it,” Putin said of the DNC breach.

“But I want to tell you again, I don’t know anything about it, and on a state level Russia has never done this.”

150k jobs were added in the month of August, well short of the 180k forecasted. The numbers were light, but still good. As such, the men of Wall are pricing in a Fed pause.

The biggest jobs gains were found in bars and eateries, with 34k new jobs added, as people drank and stuffed their fat fucking faces in record numbers–celebrating all of these gains.

Stocks are pointing up. Gold and oil are ripping, obviously. And wanton degeneracy is on the rise.

Once again, a well timed disappointment has provided the Fed with the fodder they need to sit back, do nothing, and watch equity markets do their magic.