Headlines

Headlines

‘There’s no discipline to his strategy’: Trump is undermining his own campaign

Amazon to buy self-driving technology company Zoox

Biden campaign won’t say if he supports removing statues of Washington, Grant, Roosevelt and Jesus

Glasgow: Stabbing rampage at asylum seeker hostel ...  Report: 3 dead, police wounded, suspect dead

Trump says push for less coronavirus testing was sarcasm

Texas rolls back it’s reopening a day after pausing plans, as coronavirus cases rise

CBP chief says 95% of illegals being returned rather than detained

Biden vows to force Americans to wear masks in public

John Bolton: Boris Johnson ‘playing Trump like a fiddle‘

Coronavirus updates: Housing and jobs markets show signs of slowing recovery

Trump says BLM leader’s threat to ‘burn down this system,’ is ‘treason, sedition, insurrection’

Veepstakes: Kamala all in on defunding police

Headlines

Pelosi downplays threat to withhold impeachment articles from Senate

S&P rises to another record as investors shake off impeachment, hits 3,200

Reporters caught celebrating [impeachment]?

Pope Francis has migrant crucifix installed in Vatican

Democrats stockpile cash for state-by-state redistricting fight

Housing supply hits record low, igniting prices

Schiff claims that Trump made ‘veiled threat’ to him ...

Clyburn: I would delay transmitting articles ‘as long as it takes’

Putin says Trump won’t be removed on ‘trumped-up charges’

Investors bet on a Clinton-like rally with stocks up 7% since impeachment inquiry began

Senate trial in doubt ... McConnell threatens to cancel

Mitch McConnell: Pelosi ‘to afraid’ to send impeachment articles to Senate

Headlines

Hillary Clinton on Lindsey Graham: ‘It’s like he had a brain snatch’

Next year will be hard on the housing market, especially in some big cities

Turley: ‘Even my dog seems mad’ ...

Jonathan Turley: ‘This is not the way you impeach an American president’

China denounces ‘political’ attack on Huawei by Pompeo

Trump lawyer Giuliani travels to Europe to meet ex-Ukrainian prosecutors, report says

Hillary had coughing fit on Howard Stern ...

Judiciary Democrats block motion to subpoena the ‘whistleblower’

Trump threatens to punish Germany over military spending

Trump abruptly cancels NATO news conference as summit turns sour

Now Trump caught on hot mic gossiping about Trudeau?

Turley warns Congress on impeachment for ‘obstruction’: ‘It’s your abuse of power’

Headlines

Grassley: Kavanaugh confirmation hearings likely next month

Housing demand sees biggest drop in more than two years

Study: Adults spend half of day interacting with media ...

Private payrolls boom, 219,000 jobs in July

China accuses U.S. of 'blackmail' amid reports of higher tariffs by Trump administration

Trump to Attorney General Jess Sessions: Stop Mueller probe 'right now'

Tommy Robinson freed on bail after winning [UK] court battle ...

Theresa May to beg France's Macron to accept soft Brexit plan

Democrat takeover could mean first black speaker

Construction spending shows biggest drop in over a year, factory activity slows

Death Valley records hottest month EVER ...

Planned Parenthood to sue S. Carolina to reinstate taxpayer funding

Why is the Stock Market Going Up?

Dow Jones Industrial Average

The Dow Jones Industrial Average has just passed the 14,000 mark, yet the U.S. unemployment rate has just today ticked up by 1/10th of 1% and the U.S. economy (as measured by our GNP) shrunk in the fourth quarter of last year by 1/10th of 1%.  What's going on ... isn't this an economic disconnect?  No, I think that the U.S. stock market is presaging the entrance of that red-eyed monster ... increased inflation.  We all know that the Federal Reserve's actions over the last four years ... producing new money until the Mint's printing pressing are overheating (producing over $3 trillion in new money) ... has to bring back inflation.  The nervous question has been, "When?"

Well, all this money sloshing around our economy has to go somewhere.  And it is starting to find its way into hard assets ... into the formally-wretched housing mark, into commodities, and into the stock market.  And it is fleeing the fixed-income market ... corporate debt, municipal bonds, and various U.S. government obligations.  (The yield on ten-year U.S. Treasuries has, over the last few months, increased from 1.42% to now 1.90% and heading north ... reflecting the equivalent decrease in the price for these bonds).

One caveat for investors ... the stock market will go up in an inflationary environment until such time as run-away inflation starts to damage corporate profits ... or looks like it might.  My guess would be that this effect would kick in somewhere around an inflation rate of 6-8% ... so be careful.

Afterward: For some parallel thoughts on this subject see: Powerline Blog