Markets

Trump v the Federal Reserve | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Mr. Armstrong; A spectacular call. You gave the day and the market bottomed within 100 points of your number. You always nail it. I find it curious how they blamed Trump and the Fed. Can Trump fire the head of the Fed? I really think he seriously needs to attend your WEC. He would have seen this move coming. Congrats! FG ANSWER: No. President Trump’s comments about firing Federal Reserve Chairman Jerome Powell are really off the wall. The problem is he has the classic TV talking heads view that stocks will crash with higher interest rates. Trump’s frustration with the central bank chief intensified following the interest-rate increase and months of stock-market losses. He is oblivious to the real crisis which is the low-interest rates are destroying the pension funds. Meanwhile, the media blames Trump for his tweets and the talking heads attribute the decline to interest rates. Powell cannot publicly state why rates have to rise or he would create a real debt panic. Trump is clueless as is Capitol Hill with the monumental crisis in global debt. For now, the news will bash the stocks when down, and when investors/traders see there can be no flight to bonds as quality, the real panic will begin. I wish I could reverse this mess, but reality states Trump’s handlers are rooting for the Deep State and would never let me near him. The Democrats want the stocks to crash for they can blame Trump and try to win the losers to vote for their team. The shame here is this is not about running the nation or the economy to benefit all, it is just about winning the 2020 election. Since the ECM turns in January 2020 rather than the elections in November 2020, this is indicating that we may have a psychological shift prior to the elections.
— Read on www.armstrongeconomics.com/international-news/politics/trump-v-the-federal-reserve/

The rise in interest rates will mean that banks can start paying interest on savings at guaranteed rates for specific dates, six months, one year etc. This will create real wealth and stop the need for endless money printing and risky investments. A win win for everyone except shaky derivatives and those who deal in them.

US Share Market Meltdown? | Armstrong Economics

Posted on by johnbarleycorn12

Everything is still on track for a pullback. The Dow Jones Industrial Average closed at a 14-month low on Thursday, the second consecutive day of sell-offs after the Federal Reserve announced its fourth widely-anticipated rate hike of the year. Interestingly, despite the fact that the rate hike was expected, the Fed’s revised outlook for a cooler economy stoked overall fears about a slowdown coming 2019-2020. There are also concerns over the government shutdown threatened by President Trump and the continuing trade tensions with China worried investors. Of course, none of these issues are really long-term bearish factors. Our model has been pointing to a correction given the NASDAQ peaked in August, S&P500 in September, and the Dow in October showing a great disparity between domestic retail v professional investors against international. The market has still not breached important support levels. We will provide a PRIVATE BLOG update for the morning
— Read on www.armstrongeconomics.com/markets-by-sector/stock-indicies/us-share-market-meltdown/

The ECB Creates Jobs for Central Bankers Instead of Safeguarding Financial Stability | Mises Wire

Posted on by johnbarleycorn12

The ECB’s zero and negative interest rate policy continues despite the economic upswing. An interest rate hike is not expected before autumn 2019. The extensive purchases of government and corporate bonds will have reached €2,600 billion by the end of the year.
— Read on mises.org/wire/ecb-creates-jobs-central-bankers-instead-safeguarding-financial-stability

Can America Fight Two Cold Wars at Once? – Taki’s Magazine – Taki’s Magazine

Posted on by johnbarleycorn12

She has sent hundreds of thousand of students to U.S. colleges and universities, where many have allegedly engaged in espionage.
— Read on www.takimag.com/article/can-america-fight-two-cold-wars-at-once/

Pat sums it up quite well here. We need to view China as an adversary and not a most favored trade partner. China has spread so much money around Washington DC that the politicians are bowing to China and all of their mischief. Selling our country and way of life down the road in the process.

Our corporations are so greedy for cheap labor that they refuse to hold the Chinese government accountable. Consumers here are guilty for the same reasons.

Trump is on the right track by confronting China and demanding a level playing field. The PRK is nothing more than a little China or their nasty little surrogate, we should view the PRK and China as one in the same.

Our national debt will be our eventual demise not foreign entities,but the enemy within. We need to cut deficit spending, force fair trade treaties, get out of useless military entanglements, and the UN.

That would only be the beginning.