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    Daily Digest 12/16 – The Trade War Distraction, Wall Street’s Darkest Quarter Since 2011 Just Got Worse

    by DailyDigest

    Sunday, December 16, 2018, 3:38 PM


Economy

The Trade War Distraction: Huawei And Linchpin Theory (thc0655)

Clearly, the trade war is not fading away as many assumed. As I predicted, it is only continuing to grow. And the notion that a trade war is necessary at this time in defense of the U.S. economy ignores certain realities. For example, the trade deficit itself was never “theft” by the Chinese, but a BARTER between the Chinese and the U.S. government and U.S. corporations. In exchange for the Chinese and other trade partners using the dollar as the world reserve currency (and petro-currency) and buying up US treasury debt, U.S. elites have arranged a deficit advantage for China. One could also add China’s cheap labor and low cost manufactured goods as part of that barter as well.

Opinion: Stock investors, you have now been warned for the last time (Thomas R.)

First, let’s be clear what happened in 2018: After liquidity infusions of $5 trillion in record global central bank intervention between 2016 and 2017 and the U.S. tax cut that followed, we witnessed a global blow-off top in January and then a 10% correction off historic overbought levels. The recovery that followed produced new all-time highs on select U.S. indices and stocks, while the rest of the world floundered amid slowing growth. These new highs on U.S. indices then triggered a familiar script.

Why A Defensive Rotation May Not Work So Well This Time (Jesper A.)

The reason they are so highly valued is that they are two of the highest-paying sectors in the market when it comes to dividend yields. For this reason, they have benefitted greatly from the epic “reach for yield” we have seen over the past decade inspired by ZIRP and QE.

An Extra $500 A Month? 100 Residents To Be Selected For Basic Income Pilot Program (thc0655)

“I think for the people that really need it, it will be good for them, like a lot of people say groceries, rent, car payment, even if you want to help a family member, anything extra is good to get,” Miranda said.

A team of independent researchers will pick 100 people to receive the money. The purpose is to study how an extra $500 a month impacts people’s health and stress level. Researchers are also looking to see if people feel financially secure.

Wall Street’s darkest quarter since 2011 just got worse (Thomas R.)

Johnson & Johnson (JNJ), a popular defensive stock, plunged 10% on a Reuters investigation that found the company knew for decades that asbestos sometimes tainted its Baby Powder. J&J, the worst stock in the Dow on Friday, suffered its worst day since 2002. J&J’s lawyers told Reuters that its findings are “false and misleading.”

The sharp selloff for J&J had a pronounced impact on the Dow. And the fact that it’s a widely held stock means the pain is being felt broadly.

Why You Should Move Your 401(k) Into An IRA (Thomas R.)

One reason to consider leaving your employer’s plan is that most of them have higher overall fees than an IRA, especially if you choose from low-cost index mutual funds or exchange traded funds from a company like Vanguard or Dimensional Fund Advisors. It’s not uncommon to save up to 1% annually by making a rollover into these mutual funds.

A VERY RARE SETUP: Who Will Win The Tug Of War In The Oil Market? (Thomas R.)

Even though the oil price touched $54 for a few days, it has mostly been trading in a tight $3 range. In looking at this daily chart, we have no idea why the oil price is behaving in such a way. However, if we look at the longer-term monthly chart, we can see the apparent reason why.

Thermodynamic Solar Hot Water – How it works! (Jesper A.)

The Energie thermodynamic solar hot water system takes the best of the traditional solar technologies without the issues (boiling, freezing, only working during the sunlight hours and heavy water on your roof) And takes the best of the heat pump technologies without the issues (large noisy fans to clean and maintain)

Has Peak Diesel Arrived? The Data Doesn’t Look Good (CleanEnergyFan)

Before starting, I would like to thank Rafael Fernández Díez for having the patience to download the JODI data, for having elaborated the graphs I show here, slightly retouched, and for having made me notice the problem that is being raised with the refining of heavy oils (We’ll see more below). He hasn’t had time to finish this post and that’s why I’m the one who wrote it, but what follows is actually his work.

Growing, Growing, Gone: Reaching the Limits (Matt H.)

That cluster of individuals soon coalesced into the Club of Rome, which got its name from the location of its formative meeting. The Club embraced scenarios work via Erich Jantsch, an Austrian futurist, and Hasan Özbekhan, a global systems professor at the Wharton School of Business. Özbekhan submitted a large proposal to study these global problems to the Volkswagen Foundation, on whose board one of the Club’s members served. The Volkswagen Foundation was interested in the idea behind the proposal, but rejected the proposal itself, telling the group to come back with a revised version.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/14/18

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

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One Comment

  • Mon, Dec 17, 2018 - 5:14am

    #1

    thc0655

    Status Platinum Member (Offline)

    Joined: Apr 27 2010

    Posts: 1435

    Government “shutdown”

    “Am I the only one who has a few friends who work for govt. and are “hoping” for a “govt. shutdown”? They claim they get days off & are later paid for them as if they’d worked. True or not?”
    Sharyl Attkisson

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