ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Jan 18 07:16

How to Feed Your Family When You’re Flat Broke

Feeding your family when you're flat broke isn't easy but it can be done. Here's how to prepare for a lean month when you're on a super-tight budget. (There's also an offer for a FREE cookbook for anyone who is having a difficult time right now.)

Jan 18 05:36

The Economy Is Slowing

Jan 17 20:24

Morgan Stanley (MS) Earnings Breakdown

Jan 17 16:14

REVEALED: When The Next Recession Starts

Jan 17 14:30

Oil May Never Return To The Triple-Digits

Jan 17 13:45

Student Loan Debt Is A Crisis That’s Also Impacting The Housing Market

Student loan debt is a fundamental crisis. Students are borrowing money to pay for school at an alarming rate. But as the problem worsens, it seeps into other sectors, such as the housing market, putting the entire economy on edge.

Jan 17 13:36

Is The Junk Bond Sell-Off Over?

Jan 17 12:09

Credit Suisse: "Sell Into This Stock Rally"

Jan 17 12:06

The Keys to Keeping Your Crypto Safe

By Philip Martin

Keeping your crypto safe doesn’t have to be daunting. In this piece. Coinbase VP of Security, Philip Martin, offers some best practices to stay one step ahead of hackers and scammers.

One of the primary benefits of cryptocurrencies is that they allow people to engage in online transactions without the need for an intermediary like a bank or credit-card company. Instead, anyone who wants to send or receive cryptocurrency creates a “cryptographic key”?—?a file containing a random secret code?—?that can then be used to authorize transactions from their cryptocurrency wallets. If an attacker gets access to that key, they instantly gain control the cryptocurrency wallet as if they were the owner. That’s why it’s critical to protect your keys if you manage them yourself, and lock down your accounts at trusted third-party services like Coinbase that help manage your keys for you.

Jan 17 11:37

Elon Musk Tells Lawmaker The Boring Company Can Dig via Mountain for Cheap

Elon Musk wants to solve city traffic woes one tunnel at a time. The Boring Company founder, responding to an Australian state lawmaker via Twitter on Wednesday, stated the firm could build a two-way high-speed transit route through the Blue Mountains to connect Sydney and the west for a surprisingly low price.

Jan 17 11:11

Mr. Market Will Have the Last Laugh

Jan 17 10:46

Wyatt Earp in Hollywood

In a letter, written in December 1928, the 80-year-old frontiersman Wyatt Earp opined that perhaps “my health will be back to normal when this story business is all done with.”

He was wrong twice.

Less than a month later, Wyatt was dead, and his legend was on the cusp of exploding. Some outlaws were about to become very rich from his story, but Wyatt never made a dime on any of it. This is the story of how that happened.

Jan 17 09:43

Federal Reserve Confesses Sole Responsibility for All Recessions

By David Haggith

In a surprisingly candid admission, two former Federal Reserve chairs have stated that the Federal Reserve alone is responsible for creating all recessions in the United States...

Jan 16 17:06

Quantitative Brainwashing

Jan 16 16:10

These New Numbers Are Telling Us That The Global Economic Slowdown Is Far More Advanced Than We Thought

Some people that I hear from insist that there is no possible way that they can put together an emergency fund because they are already spending everything that they are bringing in.

Jan 16 15:29

Global Debt Surpasses 244 Trillion Dollars As “Nearly Half The World Lives On Less Than $5.50 A Day”

The game is literally rigged against us, and we need to realize what we are up against. Tinkering around with the current system is not going to fix anything. We need to ditch this current system and start again from scratch, but it will probably take a horrific collapse before most people start to understand this.

Jan 16 12:56

VIDEO: LA teachers surround cars, block parking lot, scream ‘scum!’ at subs

Members of the United Teachers Los Angeles Union are continuing to hold education hostage for higher pay and increased staffing, and they’re getting a lot of help from their socialist and communist allies.

Pictures and videos posted to Twitter show Democrat Socialists of America – Los Angeles are aiding and abetting the teachers strike in a variety of ways, from heckling the “scabs” that dare defy the union to keep schools open to sponsored taco lunches to show solidarity with their union brethren.

Jan 16 12:55

U.S. Loses BIG In Trade War: Imports Rose, Exports Slashed

The trade deficit, which was made a big deal by president Donald Trump and ignited a trade war with China, has worsened. The United States has so far lost big in the core driver of the trade war (the trade deficit) that was a top complaint of Trump’s and the U.S. may have already lost this trade war.

Exports of goods from the U.S. were slashed 26.3% and imports rose 38.5% worsening the trade deficit – which the tariffs were supposed to correct. The Trump Administration’s trade warfare with China began in earnest last March following steel and aluminum tariffs that primarily hit other countries. The U.S. and Chinese tariffs on each other’s goods then escalated repeatedly through September 18 with threats of much more the same by March 1 of this year.

Jan 16 12:37

China’s Annual Trade Surplus With U.S. Hits Record Despite Trump’s Tariff Offensive

China’s trade surplus with the U.S. hit a record last year, as robust American demand for Chinese goods undercut the Trump administration’s tariff offensive aimed at narrowing the countries’ lopsided trade gap.

Jan 16 12:36

Chinese investment in US plunges 83% amid simmering trade war

Chinese investments in North America and Europe fell by 73 percent last year as a result of tightened US scrutiny of foreign takeover deals and Beijing’s restrictions on outbound investments.

Data from law firm Baker & McKenzie showed that Chinese foreign direct investment (FDI) flows into the United States have also turned negative, falling to the lowest in seven years. Chinese investments in the US fell by 83 percent, while growing by 80 percent in Canada.

Last year, Chinese companies completed just $4.8 billion in new business acquisitions and investments in the US, down 84 percent from $29 billion in 2017 and 90 percent from $46 billion in 2016.

Jan 16 12:35

Russia’s trade with China surges to more than $107 billion

Trade turnover between Russia and China soared by nearly 30 percent in 2018, reaching a record number of $107.06 billion, according to the latest report released by China’s General Administration of Customs (GAC).

The agency noted that last year Russian imports of Chinese goods increased by 12 percent to $47.98 billion. At the same time, China’s imports from Russia grew by 42.7 percent, reaching $59.08 billion. In December alone, the volume of trade between the neighboring countries reportedly totaled $9.8 billion.

Russia-China trade turnover has grown significantly over recent years. In 2017, mutual trade amounted to $84.07 billion demonstrating a growth of 20.8 percent. In 2016, the trade turnover grew by 2.2 percent in annual terms to $69.52 billion.

Jan 16 12:30

PG&E's Massive Risk Management Fail - Intent Or Ignorance?

There’s a saying that goes “mistakes are the tuition of learning”. The PG&E case in California is rife with risk management lessons where we can learn from the mistakes of others while they pick up the tab.

A big story in the financial news lately is the significant liabilities incurred by Pacific Gas and Electric or PG&E, the biggest electric company in California. The company’s core business is to generate and distribute electricity, and as a part of that business, they maintain the power lines that connect the power grid.

Jan 16 12:23

Deflation Strikes - US Import Prices Tumble In December As Petroleum Plunges

After a mixed picture from producer prices yesterday, import (and export) prices are expected to tumble MoM (as China's deflationary impulse ripples across the globe).

US import prices tumbled 0.6% YoY in December - the weakest since Sept 2016 - and export price growth slowed to its weakest since July 2017.

Jan 16 12:22

Regulators Urge Deutsche Bank To Merge With European Rival (To Spread The Pain)

Throwing a monkey wrench in rumored plans to merge Germany's two biggest banks, Bloomberg reports that Germany's financial regulators would prefer for Deutsche Bank to merge with a European rival rather than local, and just as troubled, competitor Commerzbank, setting them apart from forces in the government keen on an all-German deal.

According to Bloomberg, the ECB is favoring a cross-border combination to drive integration in the region’s financial markets, while analysis by German regulator BaFin suggests a preference for a European deal because the two domestic banks - surprise - are currently too weak to benefit sufficiently from a merger.

Jan 16 12:22

Nomura: Don't Ignore These Three Big Structural Forces

China's yuan has surged to start the year, despite dismal economic data and dramatic easing from the PBOC. US equities have soared since the start of the year (NFLX +32%, C +18% YTD) despite tumbling EPS expectations (and "little progress" on US-China trade talks). Cable has zoomed higher for a month, despite an increasingly vicious cycle of dismal results for May and her watered-down Brexit plans.

Up is down, bad is good, but water is always wet and The PPT is ever-present.

Jan 16 11:39

Iran, India Ditch Dollar In Oil Trading To Counter 'Bullying' US Sanctions

In an effort to circumvent US-imposed sanctions, India and Iran have reportedly ditched the US dollar and are trading oil in rupees. The reason becomes clear after considering the dynamics at play in the region.

In mid-February last year, Iranian President Hassan Rouhani visited India, and the two countries signed nine agreements signalling a strengthening of ties. Indian Prime Minister Narendra Modi appeared to celebrate the growing relationship, stating that it was “a matter of great pleasure” for India that an Iranian president came to India “after a gap of 10 years.”

Fast-forward a few months later, and then-UN ambassador Nikki Haley was bluntly telling India that they should rethink their relationship with Tehran.

Jan 16 11:37

Something Wicked This Way Comes

For a couple of years now, the economic narrative has shown a comparatively strong US against weakness in Europe and some of Asia (NOT China). The US, we are told, will stay on top. I agree with that, as far as it goes... but I’m not convinced the “top” will be so great.

Americans like to think we are insulated from the world. We have big oceans on either side of us. Geopolitically, they serve as buffers. But economically they connect us to other important markets that are critical to many US businesses. Problems in those markets are ultimately problems for the US, too.

Last week I gave you my Year of Living Dangerously 2019 US forecast, but I didn’t discuss important events overseas. Summarizing last week quickly, I think the base case is that the United States economy slows down but avoids recession in 2019. That said, there are significant risks to that forecast, mostly to the downside.

Jan 16 11:37

Venezuela And Turkey Unite To Refine Tons Of Gold Amid US Sanctions

Venezuela and Turkey are working on a deal to ship tonnes of gold to refine and certify in the Turkish city of Corum this year.

Facing sanctions and international pressure, Venezuela is increasingly turning to Turkey as a partner in the Middle East. Ankara will provide a host of services to Caracas, including building hospital and schools and providing humanitarian aid as a part of the gold refining deal.

Venezuelan Minister of Industries and National Production Tareck El Aissami will finalise a deal on the gold trade during a visit to Turkey on Wednesday. He will also tour an industrial complex in Corum, where Ahlatci Metal company has a refinery with an annual capacity of 365 tonnes, according to a spokesperson from the Turkish precious metals company.

Jan 16 11:35

These New Numbers Are Telling Us That The Global Economic Slowdown Is Far More Advanced Than We Thought

We continue to get more confirmation that the global economy is slowing down substantially. On Monday, it was China’s turn to surprise analysts, and the numbers that they just released are absolutely stunning. When Chinese imports and exports are both expanding, that is a clear sign that the global economy is running on all cylinders, but when both of them are contracting that is an indication that huge trouble is ahead. And the experts were certainly anticipating substantial increases in both categories in December, but instead there were huge declines. There is no possible way to spin these numbers to make them look good…

Jan 16 11:35

Conclusive Proof Europe Is In An “Economic Slump”

Data released on Monday showed that industrial production throughout the entire eurozone dropped sharply to a glacial pace of growth in the continent at the end of 2018. Not only that, but two of the four largest economies in Europe are now on the brink of recession.

Economic data in China, the globe’s second-largest economy is showing significant signs of slow down while the trade war with the United States rages on. According to the San Francisco Gate, the United States government shutdown is doing damage to the economy as well, however, most evidence points to the fact that government is unnecessary and private companies and individuals fill the voids.

Jan 16 11:17

PG&E CEO to Leave With Utility at Brink of Bankruptcy

PG&E Corp. Chief Executive Officer Geisha Williams is leaving as California’s largest utility owner nears potential bankruptcy.

The San Francisco-based company has begun a search for a new CEO following Williams’ departure, according to a statement issued Sunday. PG&E general counsel John Simon will take the helm in the meantime. Williams, 57, took over as CEO in March 2017 and is leaving after a catastrophic three months for PG&E.

“I will be leaving PG&E,” Williams said in a separate email, without providing a reason for her departure. “I value the opportunity I’ve had to lead PG&E and wish all of my colleagues well.”

Jan 16 11:14

Can Hollywood’s Biggest Media Companies Avoid Getting Crushed by Debt?

Randall Stephenson, AT&T’s chairman-CEO, summoned all of his folksy Oklahoma earnestness as he made an enthusiastic pitch to Wall Street analysts about the telephone company’s bold efforts to transform itself into a multimedia powerhouse. It was late November, less than six months after AT&T had wrapped up its $85 billion acquisition of Time Warner. But before Stephenson could wax poetic about his plans to revitalize HBO, Warner Bros. or other newly acquired AT&T subsidiaries, he felt compelled to address the elephant in the room.

“If you hear nothing else this afternoon, I want you to hear me on this,” Stephenson said at the company’s investor presentation in New York. “Our discretionary cash flow is going to go to one place. It’s going to be paying down debt.”

Jan 16 10:41

FLASHBACK - INFLATION, THE HIDDEN TAX

In The Economic Consequences of the Peace (1920), John Maynard Keynes (who is not my favorite author) observed:

“Lenin (the founder of the former communist Soviet Union) was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”.

Many people do not realize that inflation is with us, and it is an extremely destructive hidden tax, especially on the poor of all nations of the world. Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket.

Jan 16 09:44

Keep Calm and Buy the Dip

Jan 16 07:31

Visualizing the World’s Busiest Ports

Jan 15 21:54

Demand for new smartphones is in free-fall and this chart shows that the bottom is not yet in sight

In a note to clients, Credit Suisse published estimates showing that global smartphone production is in free-fall, and the bank’s analysts warned that the “bottom not yet in sight.”

Credit Suisse revised down its smartphone production forecast for the final three months of 2018, predicting it will fall by 3% quarter-on-quarter to 357 million units. It said first-quarter output will fall 19% to 289 million units.

Put another way, Credit Suisse thinks smartphone production levels will drop to their lowest level since 2013 in the first three months of 2019.

Jan 15 18:57

Economic Controls Turn Regular People Into Criminals

By Jeffrey A. Tucker

Part of the underlying drama of the show The Americans is that we know how it ends up. The glorious communist utopia of the Soviet Union, to which the main protagonists have devoted their lives as undercover spies, goes belly up at the end. Which is to say: they seem to be wasting their lives on a lost cause. The viewer knows this going in. The characters do not. They continue to believe they are working for the great cause.

You can summarize every domestic economic policy of Russia following the Bolshevik Revolution through 1991 as an attempt to salvage the unsalvageable. The attempt began in 1922 with the New Economic Policy, an expedient to save lives following the disastrous wartime socialism. It continued all the way through Nikita Khrushchev’s attempt to create a pricing system for planned markets. Even Mikhail Gorbachev’s reforms were intended to save the system from itself....

Jan 15 14:46

Student Debt Crisis Worsens: Florida Board Of Health Suspends Licenses Over Defaults

The United States Department of Education estimates more than 10 percent of student loan borrowers are in default. The federal government estimates Americans owe $1.2 trillion in student debt. That figure is now larger than all outstanding U.S. credit card and vehicle debt combined.

Jan 15 13:43

Are Tech Stocks Cheap?

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