Party On Wall Street!

By Rick Ackerman – Re-Blogged From Silver Phoenix

What are we to make of Wall Street’s exuberance on Friday over news concerning a U.S. economic expansion that refuses to die? Employers are hiring, consumers are spending and business is humming despite a dramatic economic slowdown in Asia, Europe, South America and elsewhere. Perhaps America really is an economic island, one blessed with unstinting support from a central bank that has finally succeeded in taming the business cycle?  If you are too young to remember the last three or four recessions, you might actually believe that things are different this time.

Wall Street Journal columnist David Harrison evidently does. Judging from his picture, Harrison appears to be no older than 30, so we can perhaps forgive him for suggesting, to borrow Prof. Irving Fisher’s immortal declaration, that economic equilibrium appears to have reached a permanently high plateau.

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Downside Price Rotation Dominates After Manufacturing Data

By Chris Vermeulen – Re-Blogged From Gold Eagle

Our research team has been all over this longer-term Pennant/Flag setup and the potential for the breakdown in the US/Global markets.  The US manufacturing data released today confirmed what we believed would be the outcome of the extended trade issues between the US and China – a moderate slowdown in US manufacturing.  Couple that with a US Fed that is attempting to navigate very difficult economic developments, consumers headed into the Christmas season unsure of what lies ahead, the US political environment (almost complete chaos) and uncertainties with foreign markets and we have a perfect setup for “investor malaise”.

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Is The American Machine Tool Industry Well?

By Albert Albrecht – Re-Blogged From https://www.mmsonline.com

If you can believe the economist, it is on its way to recovery. Machine tool shipments and imports have turned around since the 2009 recession low, and in recent months have steadily improved. After a dismal 2009 and poor start in 2010, quarterly shipments have started to increase, evidence that the industry has started to recover. This is encouraging, if it were not for the fact quarterly shipments fell to record lows and 2009 and 2010. It is like getting a few drops of wine to an empty wine glass—the glass is still less than half full.

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Unemployment Rate Drops Below 4 Percent for First Time Since 2000

[Not included in the 4% number are the 6 million or so Americans who have dropped out of the labor force since the last Recession, as alluded to near the end of the article. – Bob]

By Thomson/Reuters – Re-Blogged From Newsmax

U.S. job growth increased less than expected in April and the unemployment rate dropped to near a 17-1/2-year low of 3.9 percent as some jobless Americans left the labor force.

The Labor Department’s closely watched employment report on Friday also showed wages barely rising last month, which could ease concerns that inflation pressures were rapidly building up, likely keeping the Federal Reserve on a gradual path of monetary policy tightening. Continue reading

Climate Broken Window Fallacy

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

According to Time Magazine, forcing everyone to switch from CFC refrigerants to more climate friendly refrigerants is a job creation opportunity.

Here’s the One Climate Change Deal the Trump Administration Might Back

By JUSTIN WORLAND, February 6, 2018

The Trump Administration has hesitated to throw out a key deal reached in 2016 to phase out a pollutant found in air conditioners that is a factor in climate change, in part because American companies think it could be a huge business opportunity for them.

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Trump to Support US Solar Manufacturing

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

According to Politico author Emily Holden, President Trump may be on the verge of erecting trade barriers against cheap imports of Chinese solar panels, to support strategic development of domestic US solar manufacturing.

U.S. setting stage for solar trade war with China

The White House is preparing to argue that trade barriers are needed to foster solar manufacturing inside the United States.

By EMILY HOLDEN 12/15/2017

An unreleased White House document offers the strongest hint yet that the Trump administration is laying the groundwork for punitive tariffs on Chinese-made solar power equipment — a step that would promote the president’s “America First” trade agenda while sharply increasing the costs of solar power in the U.S.

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Are Deflationary Forces Here To Stay

By Sol Palha – Re-Blogged From http://www.Silver-Phoenix500.com

Manufacturing output continues to improve, even though the number of manufacturing jobs in the U.S. continues to decline and this trend will not stop. While some Jobs have gone overseas, the new trend suggests that automation has eliminated and will continue to eliminate a plethora of jobs. As this trend is in the early phase, the momentum will continue to build in the years to come.

Machines are faster, cheaper and don’t complain; at least not yet. So from a cost cutting and efficiency perspective, there is no reason to stick with humans. This, in turn, will continue to fuel the wage deflation trend. Sal Guatieri an Economist at the Bank of Montreal in a report titled “Wage Against the Machine,” states that automation is responsible for weak wage growth.

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