October 2019

U.S. ECONOMY: THE FINAL COUNTDOWN

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Heavy Meddle

As we go to press, gold is in the $1,490 per ounce range, despite the strong dollar. 

Historically, the higher the dollar, the lower the price of gold.  

Gold is dollar-based.  As the dollar strengthens, other currencies weaken against it. 

With gold trading at this current level, despite a strong dollar, it is uncommon… it’s a signal of its strength. 

AS GOES AUTO SALES, SO GOES THE ECONOMY

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As we have long noted, a key indicator to note is the health of the world’s auto industry, which makes up 5.7 percent of global economic output and 8 percent of world trade.

In China, the world’s largest auto market, vehicle production and sales declined 6.2 percent and 5.2 respectively in September. 

Passenger vehicle sales in India have declined for 11 straight months, with sales down 33.4 percent in September from a year ago. 

Auto sales are also slowing in the U.S., with new vehicles sales in September down 11.1 percent year-to-date. 

THE NERVE OF THE FEDERAL RESERVE

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The U.S. spent almost $1 trillion more than it took in during 2019, a deficit not seen in seven years.

The Fed will hold a meeting this week to decide if they are injecting enough cheap money into the economy to buttress it up against the sinking economy.

Analysts expect another cut in interest rates, while liquidity operations continue.

On Monday, the Federal Reserve released $58.15 billion in overnight liquidity into the markets. 

The Fed took in $50.95 billion in Treasury bills, $6.7 billion in mortgage-backed securities, and $500 million in agencies.

WELL-OILED CORPOCRACY 

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Oil continues its upward climb for the fourth straight session, despite the drop in U.S. inventory. Crude stocks fell last week by about 1.7 million barrels.

As we go to press, Brent crude is at $61.9 per barrel. 

It was reported last week that due to a dirty deal by Bill “Slick Willie” Clinton, which enriched oil companies with an offshore drilling deal in the Gulf of Mexico back in 1996, the U.S. government lost $18 billion in oil and gas royalties.

WORLD’S ON FIRE. TAKING IT TO THE STREETS

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Not only are forest fires burning up across the globe – in Indonesia, Brazil, Portugal, Alaska, California, to name a few – the streets are on fire, too.   

As reported throughout the year in the Trends Journal and Trends in The News video podcasts, it’s “Off With Their Heads 2.0.”

Poverty, violence, corruption… living under greedy governments run by political Gangsters who rob We the People of our money, rights, freedom and dignity, protests have spread across the globe.  

BOLIVIA: WHEN IS “ENOUGH” ENOUGH?

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In Bolivia, ranked by the World Bank Group as one of South America's poorest nations, with substantial income inequality despite economic improvements under its current President, Evo Morales, the citizens have joined the growing wave of street protests.

The trigger that ignited anger among thousands of Bolivians was alleged vote-rigging in the recent presidential election.

GETTING HOT IN CHILE 

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Santiago, Chile and Beirut, Lebanon are almost halfway across the globe from each other, yet the flames of protest, which have lit up streets in both cities, have been ignited by identical issues: government corruption and the excessive gap between rich and poor.

In Chile, the spark that ignited the flareup of the people was a rise in mass transit fares.  What began with around 400,000 taking to the streets in the capital city of Santiago had swelled to almost a million protesters throughout the country by last weekend.