Jobs number shows America First trumps China tariff fears

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The 312,000 new jobs reported for December is a huge green flag for the Trump administration.

To reach that level — almost double the Wall Street estimates — this late in the economic cycle is off the charts. Firms added 2.64 million employees in 2018 with wages climbing 3.2% for the year.

Fed chair Jay Powell blinked yesterday in a speech in Atlanta by making a more dovish statement on 2019 rate rise. As well he should. Powell should take a look at the carnage his December rate rise caused in the stock market.

His talking about the hike in the fall and his press conference comments after the rise took markets took the Dow Jones index the woodshed during the last quarter of 2018.

I have often said that Powell is tilting to windmills searching for inflation in this economy, which at 1.8% is below the Fed’s 2% target. He has pricked the asset bubble of stocks to take away the middle class wealth effect and also hurt them with cheapening home values as mortgage rates rise.

The Fed needs to understand that most of the wage increases in 2018 — while healthy — are more a mechanism of raising minimum wage in many states than overall salary increases for the US workers.

So the inflationary value of the 3.2% is muted at best due to the expendable income these households have.

While the naysayers on Wall Street are still predicting an economic slowdown here in 2019 due to tariff tiffs, Trump’s nationalistic agenda of bringing jobs back to the US is resonating with US companies.

Certainly the employment gains are testament that US companies don’t see China and a trade war as a detriment, in fact it may be creating a boost as more manufacturing jobs are being created here.

I’m sure Powell took notice of the stock market’s explosion higher on his more dovish stance. The 747-point rise erased all of the bad Apple news on Thursday and perhaps set up a new takeoff for shares to soar.

Listen we need to go back to the days when three percent of the US population knew who the Fed chairman was and take ego and hubris out of the monetary equation.

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US market’s Chinese take out fueled by globalists

US stock futures are suffering a continuing hangover after Monday’s 265 Dow point rise. Dow futures are looking at a 300-point decline at the open.

Pundits cite China’s slowing economy. How can these analysts not understand that China’s economy is slowing because of the Trump’s Administration’s tough stance on trade.

The Chinese have for decades relied on such favorable pricing on goods sold in the US there was never a reason to employ proper business processes. Merely loading a ship with iPhones or steel guaranteed big profits. This is the new normal when it comes to Chinese economic growth.

So the tariff crackdown to level the trade playing field will have to run through a few quarters to get year-over-year numbers showing slowing growth to get Wall Street’s attention. The Street is not looking at US firms, which are benefiting from the more balanced trade situation.

The globalists are also playing up a slowing China as being catastrophic for the US economy to get Trump to back off from punishing their investments in Chinese firms.

Playing hardball with China on trade, on stealing technology, on Taiwan are all good tactics to benefit US firms and Americans in general. Don’t tell me China’s economy is more important than the US for world economic growth.

The US drives the world economy and the sooner Wall Street eschews the globalist’s sky is falling narrative, the better for all Americans and US stocks.

Connecting the dots on global arrests

The global arrests of seemingly disparate individuals and international probes of banking corporations have been adding up over the last two weeks to show a more common thread.

Deutsche Bank and Danske Bank have been at the center of these financial probes with investigators seizing hordes of documents.

A global money laundering operation appears to be investigators’ focus. Illegal dealing with Iran and Russia outfits — despite sanctions existing to bar the banks from doing business with these rogue actors — is the initial reason for these probes.

Now it appears the individuals on the other side of the dealings are very well-known American and European billionaires working at the urging of once powerful political leaders from the EU and US.

We will have to wait until Dec. 13 for US Attorney John Huber’s congressional update of his Clinton Foundation investigation. His testimony was pushed back due to the funeral of ex-president George HW Bush.

On Wednesday Sabrina Meng, CFO and daughter of the founder of Huawei, the Chinese telecommunications giant, was arrested in Vancouver at the urging of the US Justice Department. The feds allege Huawei was dealing with Iran violating the sanctions.

That’s the initial charges, but it probably goes much deeper.

We also have Saudi leader Prince Mohammed bin Salman’s troubles appear to be wrapped up in this global financial upheaval. Whether he gave the order to kill Jamal Khashoggi as the initial charges have been made, will probably never be prosecuted and if charged will not be prosecuted.

Look at the fear and loathing in the stock market. The Dow plunges 800 points on Tuesday and appears to be looking at shedding another 500 points on Thursday’s open.

I am not buying the China tariff war as the culprit for this sell off. It appears that large selling by institutional investors, which cater to moneyed individuals. There appears to be a great need to be liquid at this time. The economic numbers being put out by the feds do not warrant a fear or panic in the market.

With great change, comes some pain and we may be at the beginning of something huge about to break.