1st Quarter 2019 Wrap Up - Equity Overview

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 US dollar erodes. All pretence 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 US 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 General Mattis and General 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 US pension funds were still fully funded.

This signals weakness and insecurity for the US 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 US Dollar Index – still in a upwards trend while the US dollar remains “dangerous, but dominant.”

Officially reported U.S. Treasury debt is starting to expand at a rapid pace. Outstanding debt is now greater than the US annual GDP and is expanding at an increasing rate. Treasury debt grew by 6% in 2018 and is expected to grow by 8% in 2019, despite many years of “economic recovery.” If the economy slows or goes into a recession, debt growth will accelerate. Add unfunded liabilities, and the picture deteriorates further.

This Thursday, I will talk about what may lay ahead and what it means to you, your finances and risk management.