I’ve posted some of my friend Carl’s commentary for a while. (Made his millions in penny stocks)

I get about 10 of these a day! (He does a LOT of reading!)

But I thought this recap was a pretty good one and you can read through all of it or not:

One of my favorite themes for decades had been demographics.  The birth rate in the U.S. continues to decline.  In the short run, it has a minimal impact but with each passing year the impact is more and more.  Economies don’t grow when the population isn’t increasing and aging.  Just look at the economies of Japan, Russia and many smaller nations with flatlining or declining populations. Women, and men in some cases, maybe sensing that bring children into this world as the stresses of life expand is just not a good idea.  An expression of love may not be having children. 

 Also, the Federal Reserve and the Treasury Department are now implementing what will eventually be known as America’s brand of Socialism as the Fed more actively purchases corporate debt.  The Federal Debt is apparently buying mortgage debt and corporate debt to help with liquidity in the bond markets. 

 Now China is going to ratchet up control of Hong Kong.  This will drive another wedge into any possibility of future agreements with the U.S. and possibly other nations on any issue.  China and Russia are being forced to expand their alliance.  Trump has destroyed our military alliances with just about all historic allies.  If Trump maintains control of the government the U.S. will have an impossible time attempting to call upon old military and economic alliances in the face of a growing threat of world war. 

 Very bad times could be in the future of the planet as people target each other as they blame each other for  the decimation of the world’s economy.  It now appears that the damage done to all world relationships by a combination of trade wars, the destruction of military alliances and the impact of CV 19 will be impossible to reverse.  These events are very similar to what happened leading up to WW 1 and WW 2.  Similar events  are now happening in hyper speed.  There will be no where to hide if war unfolds.   Many are now suggesting that China and the U.S. are resuming the Cold War.  It could easily become hot.     Carl

Birth rates in the US decline to lowest level in 35 years

US Birth Rate Falls To 35-Year Low, Shifting Attitudes Toward Motherhood Could Be Cause

South America Won the U.S.-China Trade War

China does not seem to understand independence of Canada’s judiciary: Trudeau

U.S. prepared to spend Russia, China ‘into oblivion’ to win nuclear arms race: U.S. envoy

U.S. plans to sell $180 million in weapons to Taiwan, angering China

Trump plans to exit arms control treaty with Russia

Fed’s balance sheet grows to $7.04T

  • The Federal Reserve’s balance sheet climbs to a record $7.04T for the week ended May 20, $103B higher than the previous week.
  • Includes $1.8B of corporate-debt ETF purchases in the first six days of the program.
  • Holds $4.09T of U.S. Treasury securities, $32B higher than the previous week.
  • Holds $1.86T of mortgage-backed securities, up $79B W/W.
  • Holds $108.6B of loans, up $6.35B vs. prior week; consisting of $19.5B under Primary credit, $7.5B under Primary Dealer Credit Facility, $36.4B  under Money Market Mutual Fund Liquidity Facility and $45.1B under Paycheck Protection Program LiquidityFacility.
  • Central bank liquidity swaps of $446.1B, up $111M W/W.


Whoops,  I bet they change their minds in October:  Kudlow says no need for more unemployment aid even as election looms

 Housing Agency Sees Prices Falling Up To 18%, May Curb Underwriting

Florida’s Mount Sinai Medical Center cuts nearly 1,000 jobs  Full story

Victoria’s Secret Parent Could Close Even More Than 250 Stores

Fed’s Clarida sees yield curve control as ‘natural complement’ to its tools

  • The Fed will study the possible use of yield curve control as a matter of “good governance”, since the tool is now used by central banks in Australia and Japan, Fed Vice Chair Richard Clarida said during a webcast organized by the New York Association for Business Economics.
  • Yield curve control “at one level is a natural complement to calendar-based guidance”, or the assurance to keep interest rates at a certain level for a specified amount of time.
  • Like Fed Chair Jerome Powell and  Dallas Fed President Robert Kaplan, he also said U.S. policymakers may need to do more to support the flagging economy beyond the multi-trillion-dollar actions they’ve already taken.
  • Depending on the course of the virus and the severity and length of the economic downturn, “additional support from both monetary and fiscal policies may be called for,” he said.

Cleveland-Cliffs hikes prices for carbon steel products

  • Cleveland-Cliffs (CLF +0.4%) says its AK Steel subsidiary has raised current spot market base prices for all carbon flat-rolled steel products by a minimum of $40/ton with new orders in North America.
  • U.S. Steel (X -4.2%) and ArcelorMittal (MT -1.3%) also are raising sheet prices by $40/ton, Cowen analyst Tyler Kenyon says.
  • While this is the second attempt by U.S. sheet mills this month to raise prices, Kenyon believes higher scrap, attractive discounts on contracts and improving demand as customers reopen likely will at least support pricing/lead times over the next 30 days.

Fed Has Purchased $1.8 Billion of Corporate-Bond ETFs So Far

Brazil to boost aid for informal workers, formal jobless insurance claims surge 76.2%

Russian economy to contract, rouble to stay weak amid pandemic: economy ministry

German business gaining traction in China again: DIHK

China announced dramatic plans to rein in dissent by writing a new national security law into Hong Kong’s charter, which could threaten its independence as a financial center. Chinese lawmakers were preparing to soon pass measures that would curb secession, sedition, foreign interference, and terrorism in the former British colony, according to the South China Morning Post.