Daily Digest

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Daily Digest 1/10 - Where the Next Crisis Starts, What’s Next For The Dollar, Gold, Stocks and Bonds?

Thursday, January 10, 2019, 11:27 AM


China-U.S. trade talks end 2nd day with no sign of progress (Uncletommy)

Chinese officials have suggested Beijing might alter its industrial plans, but they reject pressure to abandon a strategy seen by communist leaders as a path to prosperity and greater global influence. They have tried to defuse pressure for more sweeping change by offering trade concessions including purchasing more American soybeans, natural gas and other exports.

Fed's Bullard takes stand against more interest rate hikes (Adam)

At the December meeting, FOMC officials indicated two more increases could be coming this year to the benchmark funds rate target, which currently sits between 2.25 percent and 2.5 percent. However, markets are pricing in no hikes this year and possibly a rate cut in 2020, which Bullard said he would be open to if conditions deteriorate.

Here’s Where the Next Crisis Starts (thc0655)

Typically, small investors (and some bankrupt banks) get hurt the worst while the big banks get bailed out and live to fight another day.

That much panics have in common. What varies in financial panics is not how they end but how they begin. The 1987 crash started with computerized trading. The 1994 panic began in Mexico. The 1997–98 panic started in Asian emerging markets but soon spread to Russia and the big banks. The 2000 crash began with dot-coms. The 2008 panic was triggered by defaults in subprime mortgages.

What’s next for the dollar, gold, stocks & bonds? (Axel M.)

Joking aside, the Fed had been on a set course to let its large Treasury holdings run off (engage in so-called quantitative tightening or “QT”) and to raise rates. Until last summer, Powell had made it clear that even with the higher rates, the Fed was still “accommodative”; in December, after the 4th 0.25% rate hike of 2018, the FOMC statement stated that the interest rates had now reached what some at the Fed considered to be neutral, implying rates would need to move higher – especially since he had indicated a few months earlier that rates may need to move above neutral. He had also suggested not to touch the QT program, so as to not to confuse the markets with multiple policy tools.

Eccles Prison Blues – The Big Squeeze (GE Christenson)

Their game, their rules. We are stuck in their debt-based fiat currency system. Fiat money apologists spout the nonsense that not enough gold exists to back these digital currencies because governments, commercial banks and central banks have created excessive debt. They pumped too many digital Federal Reserve Notes into economic circulation and pushed prices higher. The Federal Reserve makes the rules, and they want the price of gold to remain low and not parallel the rise in the number of currency units.

What Apple’s Tailspin Means For Oil Prices (Michael S.)

The ongoing trade war also continues to put downward pressure on oil prices amid concern over oil demand growth not just in China, but globally. The so-called OPEC+ group of producers, that includes production heavyweights Saudi Arabia and Russia, agreed last month to try to soak up extra oil supply and prop up oil prices which have dropped nearly 40 percent since reaching four-year highs in October.

Flaws With a “Green New Deal,” Part 1 of 2 (thc0655)

The very term “New Deal” was chosen to appeal to the 20%+ of the unemployed in the workforce, who had ostensibly been left behind by the traditional U.S. economic system. Yes, Ocasio-Cortez and her supporters are touting the Green New Deal as (among other things) the solution to lingering economic inequities in the current system. But to call concern over a wage gap a “New Deal” is as inapt as christening a bullet train program a “Green Moon Shot.”

China gives long-awaited GM crop approvals amid U.S. trade talks (Uncletommy)

The approvals came as farmers in North America were deciding which seeds to plant this spring. China before the trade war bought some 60 percent of U.S. soybeans and U.S. farmers do not widely plant varieties it has not approved.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/9/19

Provided daily by the Peak Prosperity Gold & Silver Group

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saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4293
Russia Dumps $101 Billion From Dollar Reserves in Pivot to China

Russia Dumps $101 Billion From Dollar Reserves in Pivot to China

Bloomberg-6 hours ago
China also sold a large portion of its U.S. Treasury holdings last year amid a deepening trade war with America, and officials in Europe put forward proposals to ...

Russia Buys Quarter of World Yuan Reserves in Shift From Dollar
BloombergQuint-2 hours ago


As federal deficit approaches $1 trillion, investors are losing their ...

Los Angeles Times-22 hours ago
As the U.S. government kicks off its debt sales this year, here's one potentially worrisome sign for traders to keep in mind: the steep decline in demand at its bond ...

Holding US Treasurys? Beware: Uncle Sam Can't Account For $21 ...

Forbes-22 hours ago
$21 TRILLION of Pentagon financial transactions “could not be traced, .... Trump raised) or implicitly default on its debt by printing money to pay its bills, ...

A quarter of Americans expect to die in debt

Yahoo Finance-17 hours ago
Americans who are in debt don't have an optimistic view of the future. ... saying paying substantially more than their minimum monthly payment was their default.

California's massive debt should caution against big spending

OCRegister-22 hours ago
California's state and local debts topped $1.5 trillion as of June 30, 2017, according to a recent analysis by the California Policy Center. Addressing massive ...


ezlxq1949's picture
Status: Gold Member (Offline)
Joined: Apr 29 2009
Posts: 325
If Russia dumps $$, who picks up?

Could someone briefly explain to me how this dollar dumping works? I see news reports about it comparatively often these days. If someone "dumps," then who picks up?

I imagine that if the US has $21 trillion in some cupboard somewhere, then for it to repurchase $101 billion is not a big deal: it's just under 0.5% of the cupboard stash. Easily printed.

thc0655's picture
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1786
War is peace!


i was a teenager during the late 60’s and early 70’s when we Democrats were the party in favor of peace and opposed to war and the MIC. I switched to the R’s so I could vote in the R primary for Ron Paul. And today I’m shocked to see proof  that in less than ten years the Democraps have flipped to becoming the war party. Never thought I’d see that. “The Center will not hold.” frown

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