Shenandoah

In Memoriam of Bobby Black

Rest in Peace

Yesterday at 10:50 a.m. Central Time, Bobby Black passed away after a rapid, devastating bout with cancer.

From feeling fine just two months ago until diagnosis just last week, he lost over 50 pounds in just a few weeks, decimating his body leaving him as you see in the photo above, until he finally was called home to heaven to be with his late son who he had lost just a few…

Today the Democrats Went Full Retard

by John Galt September 24, 2019 20:30 ET

Nancy Pelosi and that group of lunatics known as the Democratic Party made the number one mistake in politics today.

Here’s the video exemplifying their ignorance of history, with a lesson from Robert Downey, Jr.:

Never go full retard.

But they did. By attempting to…

And so it Begins: USDA Staff Withdrawn After Unidentified Threats During Farm Tour

by John Galt August 21, 2019 20:00 ET

The next downturn will NOT be a repeat of 2007 to 2009.

That is a guarantee.

While the U.S. experienced isolated incidents of people being served eviction or foreclosure notices offering up armed resistance to law enforcement, such as what happened in Missouri last week, it has been all quiet on the agricultural front until today.

From the Grand…

First Ghost Cities in China, Now Ghost Trains to the EU

by John Galt August 20, 2019 22:30 ET

The first articles and recent ones about the infamous Chinese ghost cities appeared to support conjecture about China building cities just for the sake of building them to keep people employed with their excess foreign reserves.

Interestingly enough in tonight’s edition of the South China Morning Post appears this story:

China’s belt and road cargo…

The 2007 Style Credit Downgrades Have Begun

by John Galt August 18, 2019 22:30 ET

The nightmare has returned. Despite the fact that it is “different this time” as housing is not the central reason for our economic issues, the story sounds eerily familiar.

First and foremost this story from the Nikkei Asian Review which dropped earlier today:

Credit downgrades accelerate on all sides in US-China trade war

How bad is it per the…

Trump’s August Stock Market Fake Out Bounce

by John Galt August 18, 2019 22:00 ET

President Donald Regalus Postulus Magnanimous Renaldo Trumpus hereby declares that while the Congress is in recess, the American Stock Markets shall no longer be allowed wild swings or dramatic declines until after September 5, 2019.

Or something like that.

As one of my favorite economists said this past Friday:

https://twitter.com/EconguyRosie/s…

A Veiled Threat by China to Blockade Taiwan

by John Galt August 18, 2019 21:35 ET

Just when one thinks are beginning to calm down between the United States and China, the U.S. decides to sell upgraded F-16 fighter planes to Taiwan. This brings back memories of something the Chinese military leadership hinted at and although it does take a bit of searching but fortunately RT has not been totally eradicated from the internet yet:

T…

Kudlow’s Ominous Interviews on Today’s Sunday Shows

by John Galt August 18, 2019 13:15 ET

In what can only be called a weird twist of irony, Larry Kudlow, who just happens to be President Trump’s Director of the National Economic Council in the White House said this on December 6, 2007 (From the National Review):

There ain’t no recession.

Sadly for Mr. Kudlow, the NBER disagreed with home some 24 months later and pegged the start of the…

Xi Zaps Trump Rally Today

by John Galt August 15, 2019 05:25 ET

All it took was one headline:

China Says U.S. Violates Xi-Trump Consensus With New 10% Tariff

And boom. There goes the 150 point rally the DJIA was set to have this morning:

Even though this was set up as a reflex rally on over sold conditions, in a bear market beginning over sold can become more over sold before it bounces.

The other action…

U.S. 30 Year Treasury Hits All Time Record Low Yield

by John Galt August 14, 2019 06:30 ET

Via INVESTING.com

Today the talking heads will say this is “bullish” because mortgage rates will become more affordable, even though they are based on the 10 year US Treasury. Then the rest of the lefty financial talking heads will blame Trump.

The reality is that today is a historic marker:

The end of the modern United States business cycle.

N…

What to Expect when 2Y/10Y US Treasury Yields Invert

by John Galt August 14, 2019 06:00 ET

Doom. Death. Locusts. Fire from the sky. Global warming. Global cooling. CNBC anchors crying. Fox Business hosts blaming Democrats. Bloomberg hosts blaming the US 2nd Amendment.

Is that the kind of pure hot holy hell we can expect when the 2 year US Treasury and 10 year US Treasury rates invert soon (possibly today)?

Chart from CNBC.com

Actually…

PBOC Sets Morning Fix Above 7 Tonight

by John Galt August 7, 2019 21:20 ET

Watching CNBC-Asia coverage tonight (Bloomberg was getting boring) and for the first time in my memory, they People’s Bank of China just set the domestic Yuan’s morning fix at 7.0039.

This was not as weak as market projections but it does demonstrate that the PBOC will not only poke Trump in the eye, but shove a stick up Jay Powell’s tuckus in…

Someone, Somewhere Said “Sell it All” Today

by John Galt August 7, 2019 21:00 ET

For those who never saw the movie “Margin Call” here is why what I am about to say is so important:

The key phrase?

Sell it all.

Why is this important today? In an era where liquidity appears to be tightening on a global scale and a potential dollar shortage is on the horizon, someone around 4 a.m. EDT liquidated a ton of futures contracts…

08.05 BREAKING NEWS: U.S. Treasury Designates China as a Currency Manipulator

by John Galt August 5, 2019 17:56 ET

Flash headline on CNBC, more details to follow shortly. This is not going to be a good night in the currency, bond, or equity markets, IMHO!

The Deadly Fork in the Road in 12 Terrifying Outcomes

by John Galt August 5, 2019 05:00 ET

To be quite honest, I like President Donald J. Trump’s approach to the Presidency in many ways. However, I fear some of his tactics and personality traits are putting us on the road to disaster. His history of “getting going” when the going gets tough is not an attribute I would rate as a premium optimal outcome for our society. After all, there is this as…

BREAKING NEWS: China Retaliates, Orders all Entities to CEASE buying U.S. Agricultural Products

by John Galt August 4, 2019 22:28 ET

Breaking news live on Bloomberg Asia coverage. The Chinese government has ordered all companies inside the People’s Republic of China to cease buying United States Agricultural products.

More to follow once PRC websites update….

Now You Can Panic: US 10 Year Treasury Briefly Kisses 1.79%

by John Galt August 4, 2019 22:01 ET

Just wow. Equity futures are tanking also….