Daily Digest

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Daily Digest 1/7 - Heavy Snow, Storms Expected In CA, The Wheels Finally Come Off In 2017

Saturday, January 7, 2017, 10:29 AM

Economy

Forecast 2017: The Wheels Finally Come Off (Don R.)

We also might have been in better shape now if, beginning twenty years ago, we began a major rebuild of our railway infrastructure. But we blew that off, too, and shortly it will be very difficult to get around this geographically large country by any mechanical means. It may be too late now to do anything about that for the financing reasons already touched on — and which I will elaborate on next. The bottom line is that President Donald Trump will be overwhelmed by a sea of financial troubles from the very get-go, and here’s why.

Wall Street’s Most Outspoken Stock Bull Reverses, Now Top Bear (Adam)

It was Lee’s bullishness that made him the least accurate strategist on Wall Street in 2015, when the S&P 500 slid 0.7 percent. He doubled down in 2016 as the benchmark climbed 9.5 percent, and while his target overshot once again, he correctly predicted that the Federal Reserve’s decision to wait until December to hike rates and a recovery in corporate earnings would underpin stock gains into year-end.

Putin Himself Ordered Russian Hacking of Campaign, U.S. Says (jdargis)

The report was issued shortly after Trump met in New York with top intelligence officials for a briefing on their findings that Russia was responsible for the hacking of Democratic Party computers and the leaking of e-mails damaging to Democratic presidential nominee Hillary Clinton. Trump has long questioned the conclusion that Russia was behind the breach, a stance that has put him at odds with some top congressional Republicans.

Is That All There Is? Intel Community Releases Its Russia 'Hacking' Report (Aaron M.)

What's the $80-plus billion dollar per year US Intelligence Community's big beef with RT? One of its big complaints is that RT undermined US democracy when it "broadcast, hosted, and advertised third-party candidate debates..." We are to believe that Russia undermined our political system by giving voice to official yet minor US political parties? Democracy is undermined when the democratic process is highlighted?

Older Americans Are Retiring in Droves (jdargis)

For more than five years, the six-month trend for this figure — a significant demographic source of downward pressure on the headline labor force participation rate — had been heading higher, before plateauing for most of 2016. The labor force participation rate for this cohort tanked by a full percentage point, to 23.6 percent, in the final quarter of the year.

Data on flows in and out of the labor force back up this story, with the six-month trend in Americans moving from employment to outside the workforce (a loose proxy for retirements) notably accelerating since October.

US energy analysis sees renewable electricity passing coal by 2030 (jdargis)

If the EIA's reports are unrealistic, why bother? Well, they have a number of useful purposes. For example, this year's report examines what might happen with and without Obama's Clean Power Plan and projects what might happen if oil and gas exploration run up against technological or policy issues that keep the current extraction boom from continuing indefinitely. In addition, the report helps gauge the effect of current policies; if policies create an energy economy that's in some way deficient, then we can give serious consideration to how to change the policy environment.

Has U.S. Gasoline Demand Peaked? (Josh O.)

As the result of a shift towards heavier SUVs and trucks, U.S. gasoline demand has climbed. Consumption is always seasonal, but the annual peaks began to decline after the financial crisis as a tepid economy combined with fuel efficiency efforts cut into demand. But the collapse of crude oil prices in 2014 reversed the trend, with consumption rising substantially over the past three years. That has led to the average fuel economy of the entire auto fleet to stagnate at 25 miles per gallon, where it has stayed since 2014.

'State of panic' grips Northern California as atmospheric river moves in; widespread flooding, heavy snow expected (Adam)

“We’re expecting heavy, heavy rain. It starts out as snow then turns to rain then turns to snow again,” Hammitt said. “We’re concerned about the melt increasing waterways and all the lakes.”

Hammitt recalled storms in 1997 and 2005 when runoff overwhelmed local rivers and creeks and sent water into roads and homes, lifting some buildings off their foundations.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/5/17

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."

3 Comments

pyranablade's picture
pyranablade
Status: Silver Member (Offline)
Joined: Nov 8 2010
Posts: 206
From "The Wheels Come Off"

In Kunstler's history of our downfall, he says:

The supposed remedy [of the 2008 crash], the Dodd-Frank Act of 2010, was a cover for continued pervasive fraud and the institutional “capture” of government by the banking industry and its handmaidens, really a fascist melding of banking and government, a swindle machine in which anything goes and nothing matters. The frauds have only been re-channeled since 2008 into college loans, car loans, corporate stock buyback monkey business, currency arbitrage shenanigans, private equity asset-stripping, and the gigantic black box of derivatives trading.

Not as detailed or as technical an analysis as you'll get from Jim Richards, nevertgheless, Rickards would not object to Kunstler's summary.

Time2help's picture
Time2help
Status: Diamond Member (Online)
Joined: Jun 9 2011
Posts: 2888
Be like Sprinkles.

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 633
When the wheels come off, then what?

If I'm not in my own self-driving Tesla, I guess it won't matter much. But then who's holding the bag? Besides, who needs self-driving cars anyway? More importantly, why do self-driving cars need me?

I'm keeping my head down for 2017.

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