1 July 2019

1) Consumer spending increased in May as well as prices creeping up too. Both point to a slowing economic growth and benign inflation pressures. These two facts gives the Federal Reserve more reason to cut interest rates next month. Inflation is under the 2% target for this year with a projected 1.5% verses 1.8% originally expected. Consumer spending is about two thirds the U.S. economy.

2) Consumerism is changing fast, with a push to ‘no cashier checkouts’. Amazon Go stores are pushing the technology where sales payment is made automatically just by picking out items and walking out the door. E-commerce and on-line shopping continue their assault on traditional brick and mortar stores. Another strategy is showrooms in place of stores that allow the customer to try out products prior to purchasing them. Finally, drone delivery allows getting your purchases at home in less time than it takes to drive to and from a store. All these new technologies are coming together with increased profits by reducing labor cost.

3) The weekly jobless claims has increased more than expected, although there is no sign of significant layoffs as the economy slows down. Unemployment claims were 227,000 up by 10,000. The economy is slowing with manufacturing sliding down and the trade deficient widening as consumer confidence ebbs.

4) Stock market closings for- 28 JUN 19: Results from bank stress test edged markets up. Best June performance since 1938.

Dow            26,599.96    up    73.38
Nasdaq         8,006.24    up    38.49
S&P 500        2,941.76    up    16.84

10 Year Yield:    down   at    2.00%

Oil:    down   at    $58.20

3 January 19

1) Tiny houses for the young are more trendy with a wide variety of styles and designs, as more young people seek affordable housing of their own.

2) Global stocks continue falling because of concerns over Chinese economy and Brexit problems. Additionally, Chinese manufacturing segment of economy is no longer growing.

3) Fracking oil wells are not producing as much oil as forecast. For thousands of wells drilled in the last five year, they are producing less than forecasted. Some are off track by as much as 50%.

4) 2 JAN 19 Stock market closings:

Dow           23,346.24 up 18.78
Nasdaq      6,665.94      up 30.66
S&P 500           2,510.03 up       3.18

10 Year Yield: down at 2.66%

Oil: down at $45.89

EFR PODCAST EP. #28: TARIFF WARS

By: Economic & Finance Report

On this podcast #28, Bizman Bassey (Sammy BE), James Lymon and Jon Don Sterling, discuss the TARIFF situation between US, China and the rest of the world.

They discuss how manufacturing plays a major role in this TARIFF escapade, as well other business, finance and economic news…This is where you need to be.. Check it out…

#BEBless #StayBless #GODBless

#RealRecognizeDeal$$$

Website Platforms To Check Out:

1) www.instagram.com/EcoFireTV

2) www.twitter.com/EcoFireTV

3) www.EconomicandFinanceReport.com (Economic & Finance Blog Site)

4) www.Soundcloud.com/Economic-FinanceReport (Podcast/Online Show)

5) www.youtube.com/channel/UCWZo5bug…Nlb2VRfDCQ/videos (EFR.Tv Youtube Ch)

6) www.SammyBuysHomes.com (Real Estate Investment)

7) www.TraderSoul.com (Financial Trading Website)

 

 

 

 

 

 

 

 

 

EARS To The GROUND!!!!!!!!!

By: Economic & Finance Report

We have a new section on Economic & Finance Report, entitled EARS To The GROUND…

EARS To The GROUND,We will be showcasing daily reporting from new around the world (mainly on economic, economy, business, finance, but not limited to) news sources that is readily available, and has been readily available.

EARS To The GROUND, will be providing tid-bits from news around the globe that our readership may not know is available or would want insight on….

Stay Tuned 4 EARS To The GROUND…….. SB

  


1) Slow growth of European manufacturing continues for 18 months as a result of fears of international trade.  The issue of trade tariffs and the impact of exports from Europe leave manufactures reluctant to invest in expansion fearful that their markets may diminish leaving them high and dry..

 

 

 

FUTURE of HYPER CONSUMERISM!!!!!!!!!!!

The Real Value to Society for the Youth of America is as Consumers, But What Becomes of Them if Hyper-Consumerism Declines.

By: James Lyman BSAE, BSEE, MSSM

Economic & Finance Report

I’m old enough to remember the first oil crisis of 1973, when the Arab nations tried to punish America for her support of Israel in the Seventy-Two war by cutting off oil shipments. American manufacturing was already in decline when the economic shock of oil shortages ripped through society. Suddenly, American manufacturing started crumbling away as factory after factory closed with American business losing all interest in making their money by manufacturing. The Rust Belt was born. Confronted with a growing problem of spreading unemployment and diminishing opportunity for people, the government had to come up with a new way of doing things, a new kind of economy.

The solution was deemed to be the service economy, the hyper-consumerism where people’s value in the economy and to society was as consumers working to support other consumers, who in turn worked to support more consumers. Instead of producing real material wealth as was formally done with a manufacturing based economy, America would depend almost exclusively on the multiplying effect of money being exchanged from one person to another, a basic principle taught in any introduction course of economics.

Not long ago I wrote another article titled, “Tiny House – Tiny Future” about how the millenniums were turning away from the traditional living in large houses and instead going to homes that are one tenth the traditional size, and consequently foregoing the purchasing common to the hyper-consumerism society simply because they no longer have the room to keep stuff. This I proposed was maybe a sign that hyper-consumerism was coming to an end, that it was not sustainable. With diminishing opportunities for the young, they don’t have the monies to participate in hyper-consumerism the buying of things just to be buying and having things.

Then while checking my email, I glimpsed a banner for a news story about how some of the top ten retailers where closing stores, which instantly caught my attention. Could this be another sign that hyper-consumerism was on the decline, that the much vaunted service economy we depend on is now crumbing just as manufacturing with the rust belt did? Will the millenniums and Z Generation be less able to make substantive contributions to society? I decided to check into this and here’s a parcel list of those retailers who are contracting by closing stores:

Sears & Kmart: 43 additional stores

J.C. Penney: 138 stores

Macy’s: 68 stores

Payless ShoeSource:  512 stores and counting

Radio Shack:  1,000 stores with only 70 remaining

Staples:  70 stores

CVS: 70 stores

Neiman Marcus: number not stated

Furthermore, some of the top American retailers may be declaring bankruptcy this year. No doubt, you’ve heard the recent story of how Alfred Angelo Bridal, the national bridal gown retailer, suddenly closed their doors in bankruptcy leaving hundreds of soon to be brides with nothing to wear to their nuptials but what was already in their closets. Not only that, but they would get just a fraction of their money back  and then months or years from now at that!

So what if this is portents of things to come? So what if the youth of America doesn’t have the hyper-consumerism based economy of their parents and grandparents? Well the real question is, what do they have instead? What is in line to replace it? The answer is nothing! No one in the government is working on some alternative, just like 1973 when American manufacturing was fading. It wasn’t until the shock of the oil crisis that our government gave the situation any consideration, and then it was a quicky decision with little to no real consideration (in other words talking points), and certainly no modeling of the consequences from that decision. That time, they sort of lucked out and it’s worked for several decades, but can they luck out again?

And how do I know that no consideration is being given to a possible demise of hyper-consumerism? Because you hear virtually nothing about the obsolete people problem with the displacement of workers by technology. This is a very integral part of today’s economic problems for the millenniums, in that anytime you can reduce the intellectual-skill levels required for a job, you reduce your labor cost. Displacement by technology means that millenniums are less able to make money because machines are doing the better paying work. Without money, their value as consumers diminishes so they are less able to support a hyper-consumerism based economy. Like the washing away of sand under the foundation of a house, there just comes a time when the house can no longer stand.

Without hyper-consumerism  what will become of so many of America’s youth.

WHITE HOUSE MANUFACTURING & STRATEGIC POLICY COUNCILS NO MORE EXISTENT…………

By: Economic & Finance Report

The White House Strategic Policy & Manufacturing  Councils have disbanded. Both Councils were set up by President Trump and the White House, for top level executives in the business spectrum, to bring forth and initiate ideas to help bring jobs to American workers.

Many CEOs of the Councils stepped down because of the handling of the situation that occurred in Charlottesville, Virginia on Saturday August 12, 2017. Many of the CEO were angered and bothered; on how the President confronted the situation via news conference; in which he waited a few days, to speak on the dire situation. The CEO’s felt uneasy and uncomfortable about how the President handled the racial tensions that occurred in Charlottesville, Virginia that weekend of August 12, 2017.

The Manufacturing & Strategic-Policy Councils were set up to assist and advise the President on job creation initiatives for working Americans, and to implement job creation policies in the United States.-SB

 

EFR PODCAST EP #14: TRUMPONOMIC POLICIES

By: Economic & Finance Report

New episode of the EFR Podcast, episode # 14 via Soundcloud. This episode contributes to the economic and financial policies set forth by United States President Donald Trump, called (TRUMPONOMICS). We discuss the effects of his economic policies and its outlaying prospects relayed domestically and globally.

Check out episode # 14 below… VIA THE CLOUD…. Soundcloud that is 🙂

Check out this important episode as we disclose it all here on
the EFR Podcast. #Stay Blessed & God Bless -SB

Our Websites Below:

1) www.Economic&FinanceReport.com (Economic & Finance Blog Site)

2) www.Economic-FinanceReport (Podcast/Online Show)

3) www.youtube.com/watch?v=t623Ni1W2t4 (EFR.Tv Youtube Ch)

4) www.SammyBuysHomes.com (Real Estate Investment)

 

TRUMP’S BOX TRAP: Has President Donald Trump Boxed Himself; In Regards To Returning Manufacturing Jobs To AMERICA????

By: James Lyman BSAE, BSEE, MSSM

Economic & Finance Report

One prominent theme of Donald Trump’s campaign has been the fleeing of American manufacturing jobs to foreign shores and his determination to first stop, then reverse the flow of American manufacturing jobs to lands of cheaper labor. This is based on a popular American perception of cheap foreign labor being why manufacturing has moved to foreign lands. As so often the case, reality is far more complex than perception. The two major forces, which are never spoken of in our political discourse, and which Mr. Trump as a business man is very familiar with, are ‘High Capitalization’ and ‘Low Return on Investment’.

These are two basic terms than any undergraduate business major knows and understands, which makes it surprising that you never hear these terms in news stories about the flight of American manufacturing. For those with limited business knowledge, High Capitalization means it takes a lot of money to start and run a business, while Low Return on Investment means you’re not getting much for your money. For manufacturing you must buy expensive machinery and equipment, the raw materials to make things out of, land, buildings, tools, transportation … the mirid of things you see in any factory. Then you need money to run the business, money to buy more materials, money to pay bills and payroll while waiting for things you make to sell and the time your customers take to pay for them. Starting and running a manufacturing operation takes a lot of money, while software and retail based businesses require much less. Return on investment means how much money you make for all that money you’ve invested. Think of having all that money you poured into your manufacture startup in a bank savings account. In

one year, you get some amount of money from the interest paid by the bank. The interest is your return on investment. Now if you have $10,000,000 in this savings account, and you only get $25,000 in interest payment per year (0.25%)— you’re going to start looking for some other bank that pays more.

And that’s exactly what happened! By the early 1960’s, the American manufacturing segment began to realize it wasn’t making much money on all that money they had invested in manufacturing. So they begin looking for those other 0banks0, where investments would pay significantly better than manufacturing. Put simply … they didn’t want cheaper labor, they just wanted out of manufacturing! If labor cost was the principle issue, they would have simply moved their factories to the southern states, especially those having right to work … and would have been welcomed with open arms of joy. As the sixties drew to a close, manufacturing enterprises were closing down their operations, pulling monies out to invest in those other banks … the emerging hyper consumerism economy of franchise restaurants and speciality stores, strip centers, shopping malls, consumer financing, big box stores and entertainment. All those things we now take for granted. The oil crisis of 1973 accelerated this movement resulting in the ‘Rust Belt’.

An important side bar to this is that at this same time the machine tool robots, which replaced the highly skilled machinist, were becoming available. American manufacturing had always been and remained concentrated in the north-east corridor because manufacturing required a large pool of highly skilled labor to draw upon. With the advent of robots, manufactures no longer needed that pool of skilled labor, so foreign investors could now either start up their own manufactures to compete with American companies or subsidize American factories moving in by providing the financing to build and establish manufacturing operations in their country. Either way, American companies were able to 0get shuck0 of their factories and used that money to make some real money, which they did.

Now as an engineer, I’m not in favor of the demise of manufacturing in America simply because it means less opportunities for my brethren. But more importantly, since the first modern war, the American Civil War, modern wars are fought and won … or loss in the factories. We no longer have the true military might we assume we have when looking at our array of modern weapons. For instants, it takes about 30,000 vendors and suppliers to manufacture a modern aircraft, with more and more of these now foreign based. We are now so deplete of industry to support our military operations, that during Iraq and Afghanistan operations, we had to buy such military basics as small arms ammunition from foreign manufactures.

Most of the flight of American manufacturing has already happened. If Mr. Trump intends to restore manufacturing to American, which we very much need, then he must successfully address those two business topics of ‘High Capitalization’ and ‘Low Return on Investment’. There’s not really much he can do for High Capitalization, after all, things cost and you can’t really avoid that. But the real stumbling point is that Low Return on Investment, because business will not sink their monies into enterprises that will make them little money. You wouldn’t with your money, so why would you expect anyone else to. That’s the real problem that Trump and the Congress must successfully address if manufacturing is to ever return to America.

However, even if successful in bringing some amount of manufacturing back to America, there won’t be the hay day of good paying manufacturing jobs as seen prior to the 1960’s for the simple reason that automation and robots have eliminated so many jobs in manufacturing. Another reason that cheap labor isn’t the driving force that American popular culture considers it to be. Nevertheless, the lack of a manufacturing base presents serious problems for our economic future, in particular with the continual deterioration of relations with China, who now provides so much of our manufactured goods.

Will taxes and tariffs provide the means to force a resurrection of American manufacturing? I don’t know, I haven’t seen any modeling of the problem. But either way, the economy could be in for some rough times, particularly militarily. Most people don’t realize that we spent the first two years of World War II just preparing for war. For America, 1944 onwards was the real war for Americans.

And in today’s world, we may not get that luxury of time again.

EMPLOYMENT OPPORTUNITIES KEY IN INDIANA STATE…..

Indiana

By: Economic & Finance Report

Job opportunities continue to flourish in Indiana. Indiana added 219,000 jobs in the private sector in July 2015. This placed the state in 12th as far as private sector job employment.

Indiana ranks #2 in adding the most manufacturing jobs to its state.  According to the Chicago Tribune, Indiana has added over 91,000 jobs in the manufacturing industry alone, for its state constituency. It has the 4th most manufacturing private sector jobs in The United States.

The state is above the national average as far as labor force participation. The national average is around 62.6%, Indiana is at 63.5%. This has allowed Indiana to have  fruitful unemployment numbers below the national average, at 4.7%, national average (5%).  Indiana must be doing something economically right.-SB

Latin America’s Economy May Be Affected By China’s Slowdown

latin america gdp

By Economic & Finance Report

It has been perceived that China’s economic  slow growth recently may be affecting the Latin America’s economy, because of the lack of China’s purchasing raw materials in Latin America.  Raw materials such as soybeans (Argentina), copper (Chile), coffee (Brazil) have seen recent drastic declines, especially since China’s has reduced its  ability to purchase these lucrative commodities.

Countries such as Venezuela have been hit hard by the recent slowdown especially with the declining of oil and other precious resources. The IMF has predicted a country such as Venezuela will be contracting for the next two years, this year and next year.

It is stated that Latin America has focused to heavily on raw material output and not enough on  diversifying other sectors in regional production. Many analysts speculated that China’s cheap labor eventually would outcompete  Latin America’s labor force, which it did and the manufacturing sector in Latin America’s economy has suffered horribly for it.

A growing and stable China helped cultivate  and economize many Latin American countries, and it is without this growth that stagnated the continent as well.Though it is implied by economists that Latin America may now need to focus more on regional development export and imports in the regional instead on dependency that has been plagued for decades by China, since the 1970s.

China has rebutted that the economic slowdown will be a long term effect to Latin America. They insist that the commodities that are exported to China serve as a mutual benefit for both Latin America and China, even more so then exports to the United States. As time passes and trade is one of the main focal points between China and Latin America, it remains to be seen how this economic barrier or stagnation  develops itself, if or when it does…

-SB