First thing I did this morning was ask “Is this the day I become a millionaire?” Then the answer came to me: No chance, fool.
Still, betting on the market doing down has not been an entirely bad thing for us financially although early on this morning it looked like the market would bounce a bit, but that would be fine.
What’s got our attention, more than anything, since we don’t get the jobs numbers until tomorrow, is what is the reference to “the rose people” that keeps peeking out of our www.nostracodeus.com data? Odd word to come floating up…so you might want to check the site later on this morning because Grady will be updating as soon as the overnight runs are done.
Which leaves us with the Baltic Dry Index as our next topic du jour. This index has been flopping around at about the 1100 level recently and this morning’s reading is 1092, but only up 6-points. Spring hasn’t exactly broken out yet and there ain’t no birds singing….
To put that in perspective, that’s about 1/2 of what it was just a few months back, and since the Baltic Dry tends to front-run the more staid economic indicators, it’s worth keeping an eye on where it goes from here because excursions below 1,000 become worrisome.
While the mainstream is trying to figure out how to come up with yet another useless Seahawks human interest follow-up story, we’re more focused around here on what’s going on in China.
China’s state-run media (as opposed to our corporate-controlled media) is playing a strong rhyme off of pre World War II events. Seems the head of Japan’s NHK Broadcasting service did something of a denial deal about the Nanking Massacre. Which, if you’re Chinese (or read Wikipedia) is pretty real…
The Nanking Massacre, also known as the Rape of Nanking, was an episode of mass murder and mass rape committed by Japanese troops against Nanking (current official spelling: Nanjing) during the Second Sino-Japanese War in 1937. The massacre occurred during a six-week period starting December 13, 1937, the day that the Japanese captured Nanking, which was then the Chinese capital. (See Republic of China). During this period, hundreds of thousands of Chinese civilians and disarmed combatants were murdered by soldiers of the Imperial Japanese Army.[1][2] Widespread rape and looting also occurred.[3][4] Historians and witnesses have estimated that 250,000 to 300,000 people were killed.[5] Several of the key perpetrators of the atrocities, at the time labelled as war crimes, were later tried and found guilty at the Nanjing War Crimes Tribunal, and were executed. Another key perpetrator, Prince Asaka, a member of the Imperial Family, escaped prosecution by having earlier been granted immunity by the Allies.
And so this morning, Xinhua offers this: “Foreign Ministry spokesman Hong Lei said that such behavior is “a barefaced challenge to the international justice and human conscience.”
Since these events hark back to the middle 30’s, and since we are in a Long Wave economic Depression (which is why interest rates are zero, if you skip the money printing festival) there are even more parallels to the pre-WW II period to be found.
For example, the US-backed president of the Philippines, Benigno Aquino, has been saying harsh things about China lately, including drawing a parallel between appeasement of Hitler and current events in the Senkaku Islands area (Okinawa, East China Sea area) and that, in turn, has pissed off the Chinese.
The US, knowing which side our bonds are buttered on (if China completely goes cold turkey on the Dollar, we’re all screwed and a few folks in Washington grok that) some we’re off placing the typical US two-faced game.
The way this runs is we say (from the US voice) that the Chinese are acting professionally in their air defense zone that they have set up over the disputed Islands area (with oil and gas under it, which is why all this dance is going in the first place). And we’re gently asking China to adjust some of its claims.
No, we don’t expect China to adjust its claims. Besides, China could still be miffed that so few people have an understanding of history, including that a Chinese Fleet sailed around the whole world in the years before Christopher Columbus, but they get no creds, even now, for being a global civilization because it didn’t set with the made-up history of Europe, but that’s another discussion – probably left for the chat about the deep (and twisted) roots of American Exceptionalism.
So our money is on China continue to ramp up military spending while they public are talking about their “New Economy””. I’m thinking iron fist in soft glove.
And this has what to do with becoming a millionaire? Ever look for Chinese defense industry companies to invest in?
Rolling in Data
We have a number of incredibly interesting numbers to report this morning…and I bet you’ve been up since midnight just counting down the seconds until you could get the new balance of trade figures, haven’t you?
The U.S. Census Bureau and the U.S. Bureau of
Economic Analysis, through the Department of Commerce,
announced today that total December exports of $191.3 billion
and imports of $230.0 billion resulted in a goods and services
deficit of $38.7 billion, up from $34.6 billion in November,
revised. December exports were $3.5 billion less than
November exports of $194.8 billion. December imports were
$0.6 billion more than November imports of $229.4 billion.In December, the goods deficit increased $4.6 billion
from November to $58.8 billion, and the services surplus
increased $0.4 billion from November to $20.1 billion.
Exports of goods decreased $4.3 billion to $132.8 billion, and
imports of goods increased $0.3 billion to $191.6 billion.
Exports of services increased $0.8 billion to $58.5 billion, and
imports of services increased $0.3 billion to $38.4 billion.
OMG is that exciting, or what? Well, how about the new Q4 productivity report…another wet spot for sure…
Nonfarm business sector labor productivity increased at a 3.2 percent annual rate during the fourth quarter of 2013, the U.S. Bureau of Labor Statistics reported today.