1st Quarter 2019 Wrap Up – Equity Overview & Rambus Chartology April 18, 2019
“Looking forward, IMF projections imply that the dollar zone will return to the sizeable deficits that were last seen in the mid-1980s. On this view, the dollar zone current account deficit would be larger than it has been since the euro came into existence 20 years ago. On current evidence, if the renminbi becomes a key currency, it would carry a substantial share of global GDP out of the dollar zone. This would leave the dollar zone deficit all the wider.” ~ Hiro Ito and Robert N. McCauley, Bank for International Settlements, December 2018
~ Audios will post by 6 P.M. CT the evening of Thursday, April 18 ~
This week I present the 1st Quarter 2019 Equity Overview with charting from Rambus Chartology. Check out the 1st Quarter 2019 Wrap Up web presentation here for the quarterly financial charts and Rambus Chartology when posted on Thursday. Just use your Solari Report password to login.
The Anglo-American alliance is in a period of significant stress. While the United Kingdom buys time with a Brexit extension until October 31, the dominance of the U.S. dollar erodes. All pretense of soft power has given way to hardball—from the arrest of Julian Assange in London last week to the Mayor of New York’s attempt to destroy the health and religious freedoms of the Williamsburg Orthodox Jewish community.
There are indications that the U.S. is preparing to follow Netanyahu, emboldened by election success, into a suicidal confrontation with Iran. In the mix, FASAB 56 can now finance secret armies without the interference of seasoned Marines such as Generals Mattis and Kelly. The global neocons do not appear deterred by the recent calculation that the United States has spent $5.9 trillion on the War on Terror, including war in the Middle East, since 9/11—a time when U.S. pension funds were still fully funded.
This signals weakness and insecurity for the U.S. dollar. Like sharks in the water, global institutions are tracking the inability of the American political and business establishment and their global allies to manage the transition without excessive violence and scapegoating. Here is the historical chart for the U.S. Dollar Index—still in an upward trend while the U.S. dollar remains “dangerous, but dominant.”
See story here.
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Upcoming Reports
May 2, 2019 - 1st Quarter 2019 Wrap Up News Trends & Stories, Part II - Dr. Joseph Farrell
April 25th, 2019 1st Quarter 2019 Wrap Up – News Trends & Stories, Part I - Dr. Joseph Farrell
April 18th, 2019 - 1st Quarter 2019 Wrap Up - Equity Overview & Rambus Chartology
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Catherine’s Money & Markets Commentary: April 18, 2019
Caveat Emptor: Why Investors Need to Do Due Diligence on U.S. Treasury and Related Securities
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