Wednesday, November 13, 2019

The End Of The Bull Market, In Three Charts

by John Rubino, Dollar Collapse:

Stocks have completely recovered from their flash bear market of late 2018.

But now they face a hard question: Can already record high prices continue to rise in the face of falling corporate profits?

Let’s start with the “falling corporate profits” part:

A business generates improving profits when the things it sells rise in price faster than the cost of production. So on the following chart you want labor costs to be flat or falling, and the other line – a measure of inflation – to be rising. But lately the opposite is true.

TRUMP DRAMATICALLY INCREASES SEIZURES OF CHINESE CONTRABAND AT U.S. BORDER

from InfoWars:

White House taking gloves off on customs enforcement and securing border

President Trump has dramatically hardened the border and beefed up customs enforcement in recent weeks, leading to a huge spike in Chinese contraband seizures of fentanyl and gun parts.

Just today, Mexico, who has been working with the Trump on border security, announced it had seized a 25-ton fentanyl shipment from China at the port city of Lázaro Cárdenasas, as the result of a joint task operation by Mexico’s customs enforcement and navy.

Who Bought the Nearly $1 Trillion of New US Government Debt over the Past 12 Months?

by Wolf Richter, Wolf Street:

The Fed & China dumped. But there was huge demand elsewhere. Here’s who bought.

The US debt-ceiling charade is back. It’s where different political power groups in Congress stall legislation that would raise the maximum amount of money the government is allowed to borrow to fund what Congress had ordered the government to fund. It’s a game of chicken that can push the US government into default, to the bewilderment of the foreign creditors of the US that are holding a big part of this debt that would default.

TRUMP TO BE BLAMED FOR THE NEXT RECESSION, BUT AMERICANS’ LACK OF RESPONSIBILITY IS REAL CULPRIT

by Mac Slavo, SHTF Plan:

President Donald Trump is already taking flack for rolling back regulations designed to keep Americans from overextending themselves when it comes to the use of credit.  But this is not actually Trump’s fault; as Americans should learn to control themselves and be responsible for the money they borrow.

When Trump does things that are insane, such as start a trade war, we’ve called him out.  But this time, some personal responsibility would go a long way. Instead of blaming Trump for daring to offer more freedom to the public, take initiative and understand what you are signing. No one is putting a gun to the heads of Americans and forcing them to sign up for an adjustable interest rate, 40-year mortgage with no down payment.

TRUCKING BLOODBATH: 2,500 TRUCKERS HAVE LOST THEIR JOBS SO FAR IN 2019

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by Mac Slavo, SHTF Plan:

The trucking industry is experiencing a “bloodbath.” So far in 2019, at least 2,500 truckers have lost their jobs as companies go bankrupt as a major recession indicator keeps going negative.

According to Yahoo, six trucking companies have completely folded in 2019 and hat has left more than 2,500 truck drivers unemployed. And after a hugely profitable year in 2018, this year has seen retailers and manufacturers moving less, according to the Cass Freight Index, which has been a pretty spot-on indicator of a recession.

Can Western Central Banks Continue Capping Gold At $1350?

by Dave Kranzler, Investment Research Dynamics:

“Shanghai Gold will change the current gold market with its ‘consumed in the East but priced in the West’ arrangement. When China has the right to speak in the international gold market, the true price of gold will be revealed.” – Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014

The price of gold has jumped 5.8% in a little over 3 weeks. This is a big move in a short period of time for any asset. Two factors fueled the move. The first is the expectation that Central Banks globally will revert back to money printing and negative interest rate policies to address a collapsing global economy. The second factor, more technical in nature, pushing gold higher is hedge funds chasing the upward price-momentum in the Comex and LBMA paper gold markets.

Dollar Dominance Under Multiple, Converging Threats

by Jim Rickards, Daily Reckoning:

For years, currency analysts have looked for signs of an international monetary “reset” that would diminish the dollar’s role as the leading reserve currency and replace it with a substitute agreed upon at some Bretton Woods-style monetary conference.

That push has been accelerated by Washington’s use of the dollar as a weapon of financial warfare, including the application of sanctions. The U.S. uses the dollar strategically to reward friends and punish enemies.

The use of the dollar as a weapon is not limited to trade wars and currency wars, although the dollar is used tactically in those disputes. The dollar is much more powerful than that.