9 April 2019

1) In ten years, the US debt to GDP ratio will be equal (100%). The debt to GDP ratio is presently 78%, the highest since the end of World War II, but it’s anticipated to be 96% by 2028. To bring this into perspective, countries with sever economic problems such as Greece have a ratio of 188%, Italy 130%, Portugal at 120% and Spain with 97%. On the positive side, Germany has a ratio of 59%. The IMF is warning of the problem for America if the ratio is left to continue as is. A high ratio hinders a government’s ability to counter any economic downturn. America’s entitlements is the principle cause for the increase, because when Social Security was started, there were 16 workers to support each retiree, now there are just 2.6 workers.

2) European Union borrowers are eager to see how a Brexit extension will effect markets, by possibly reducing the uncertainty that Brexit has brought on. This spring, the IMF and World Bank will be meeting for their annual conference on world economic matters.

3) Tesla, the maker of electric automobiles, is starting its new quarter with another round of cuts of sales staff following poor deliveries. The company is closing some of it’s show rooms in favor of online sales. These actions are rattling investors by stoking confusion.

4) 8 APR 19 Stock market closing:

Dow                          26,341.02     down     83.97
Nasdaq                       7,953.88           up     15.19
S&P 500                      2,895.77           up       3.03

10 Year Yield:    up   at    2.52%

Oil:    up   at    $64.46

7 March 2019

1) The economic balance in US trade deficient soared last year to $621 billion dollars, the highest level in ten years. Exports from the US fell 1.9% while imports rose 2.1%. The deficient with China was $419 billion dollars. The strong US economy is considered a factor in the increase of the imbalance.

2) Italy’s experiment with Universal Basic Income is having dismal results, with Italy’s poverty and unemployment rising. The intent of the program was to alleviate poverty and address it’s high unemployment, for Italy has the highest unemployment rate in Europe. Finland tried the same scheme, but scraped it’s program after two years. The European Union is taking exception to Italy’s spending habits.

3) The General Motor’s Lordstown plant is shutting down with the loss of 5,400 jobs. This shows that despite the booming job market in America, the economy is still leaving people behind. Major problem is the workers are older and lack the computer and technical knowledge to retrain for other job fields.

4) 6 MAR 19 Stock market closings:

Dow               25,673.46       down       133.17
Nasdaq            7,505.92       down         70.44
S&P 500           2,771.45       down         18.20

10 Year Yield:     down   at   2.69%

Oil:     down   at    $56.15

12 February 2019

New article posted below titled, “Failings of the Fourth Estate!”

1) Civil unrest continues to spread across Europe, from France, to Italy and Serbia. The yellow vest protesters in France tried to cross from France into Italy to join with the Italian protesters. Also, the protest by the separatist continues in Spain.

2) Generation-Z is doing the least preparations financially of the previous generations, only 16% doing any financial planning what so ever. They have higher credit card debt, spend big on nonessential things and have little savings.

3) The Chinese stated that trade talks are going remarkably well, giving hope that the trade war may yet be alleviated. Presently, there is a 10% tariff on $200 billion dollars, nearly half of China’s imports to the US, which will increase to 20% next week.

4) 11 FEB 19 Stock market closings:

Dow           25,053.11      down     53.22
Nasdaq       7,307.90           up        9.71
S&P 500      2,709.80           up        1.92

10 Year Yield:    up   at    2.66%

Oil:    up   at    $52.45

1 February 2019

1) Trump’s Venezuela oil sanctions has put Russia’s massive loans at risk. With loans of over $7 billion dollars from Russia, which were to be repaid in crude oil delivers instead of currency, Russia faces ‘no payment’ until the sanctions are lifted.

2) Because of the increased production of oil in the US and imports from Canada, the use of oil carrying trains is increasing after having declined. Pipe lines are unable to carry the increasing volumes of oil to refineries.

3) Italy is now in negative economic growth for the second quarter, with no prospects of reversal in the near future.

4) 31 JAN 19 Stock market closings:

Dow           24,999.67     down    15.19
Nasdaq        7,281.74          up    98.66
S&P 500       2,704.10          up     23.05

10 Year Yield:    down   at    2.64%

Oil:    up   at    $54.02