We think the market may be nearing an important (3-6 month type) peak, although there’s not investment advice, of course.
Reason? Quarterly job cuts just out this morning, are at the highest level since Q1 of 2015. Read ’em and weep in the Challenger numbers:
“U.S.-based employers announced plans to cut 60,587 jobs from their payrolls in March, down 21% from the 76,835 cuts announced in February. Despite the decline, last month’s cuts in the Automotive and Energy sectors added to the highest quarterly total of the last 14 quarters, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
First quarter cuts totaled 190,410, 10.3% higher than the 172,601 cuts announced in the final quarter of 2018 and 35.6% higher than the 140,379 announced in the same quarter last year. It is the highest quarterly total since Q3 2015, when 205,759 cuts were announced. It is also the highest first quarter total since 2009, when 562,510 cuts were recorded.
“Companies appear to be streamlining and updating their processes, and workforce reductions are increasingly becoming a part of these decisions. Consumer behavior and advances in technology are driving many of these cuts,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc.
“Another major driver of the uptick in job cuts is economic uncertainty and fears of an upcoming downturn. Companies are reacting to market conditions as much as consumer demand,” he added.
March job cuts were led by the Automotive sector, which announced 8,838 cuts. So far this year, automotive manufacturers and suppliers have cut 15,887 jobs. Energy companies followed with 8,149 planned cuts last month, for a total of 10,548 this year.”
Now, here’s the “mind twister.”
In a really strange, economically perverted-way, the present dumping of illegal aliens all along the southern border states with Mexico is actually a good thing for the U.S. economy.
Let;s put on the blood-hound suit and begin at the beginning. You may have missed it last week (because th3e NE Liberal/Globalist-owned news outfits are burying the story) but “Migrants inundating San Antonio bus station” was a very big deal. And it’s getting worse because we are seeing stories today like “US expands “catch and release” amid surge of migrants.”
I know…you’re thinking “What the hell? What about Trump on strong borders?”
What’s really going on – down at the street-level economics level – and cleverly hidden by the corporate-co-opted press – is that illegal immigration is addictive. It puts crack, oxy, and coke all to shame.
Thought-templates matter and it’s why we look to Europe to see how well “Open Borders” has worked out for them. You knew it as the Schengen Passport-free Zone. What it did was tear-down borders which had (for centuries) kept populations from picking up and going (like maggots) to where the food, jobs, and government freebies were.
Once breached, the Muslim hordes coming to Europe were enough of an economic power-house to keep the European Union from imploding. Toss in the subjugation of new countries as EU “members” (slaves) and you see a tax-base that is growing. Through in hugely expansionary regulatory scams – like the EU bullshit demanding 4% of Google worldwide revenue on some piss-ant excuse…
Suddenly, a collection of bankrupt countries that should have imploded from ijt’s own bureaucratic overhead crushing people, had a “way out.”
Now, let’s use the same template along the southern U.S. border, right?
Instead of hordes of Muslims coming is, we have hordes of (nominally) Catholics, but also a huge overhead of MS-13 types who are bringing their “1930’s gangster style – to America. And, just as in Europe – where the EU found a reason to increase general levels of taxation – the U.S. is now in process of raising levels of taxation (or haven’t you done your return yet?).
What’s more, all of the 1.5-million (or more) who “sneak in” will require housing, education, food, government services, and jobs.
But the upside is they will (mostly) be paying Social Security and that will help offset the coming collapse of the Social Security Trust fund, with is neither social, not secure, nor “trust-worthy” because the crooks in Washington put it all in the General Fund and make up IOU’s called agency debt….
“Mean like the Central American invasion is good?”
No, I never said that.
The Central America invasion is an economic “problem” but as the Chinese so correctly note, problems are just opportunities not fully recognized.
The “invasion” will grow the economy – and oh, my, San Antonio is what? Last yeaqr, the Texas Tribune reported “San Antonio tops national list in population gain; Houston growth is sluggish…” Oh, did I mention New Braunfels is the second-fastest growing city in the country? Driving time from NB to SA is one hour this morning because the area is exploding with cars and people. There was once a time you could drive the 32.9 miles in 35-minutes. This is progress, right?
And corporations are flocking in because my, oh my: Cheap Labor!!!
More recently, MentalFloss offered a list of “fastest-growing” cities and lookie here: Of 20 picks, 7 out of 20 were in Texas. 11-out of 20 if we put in California, another bordering on insanity locale.
Of course, we have been forecasting this for years: The low intensity conflict (LIC) with Mexico bubbling into a cross between a “civil war” and a “gang war” (because we’re due to rhyme off the 1920’s Chicago gang period that accompanied Prohibition). But in the modern-spin of history, Mexican “dirt weed” “black tar heroin” and Chinese-made fentanyl are the new prohibitos.
I know…you’re wondering “How could American politicians let this kind of crap happen?”
Gradualism, dear reader, gradualism. Besides, where do you think the money to elect people comes from? Special Interests which, and this may be a Mena thing to say, it’s been going on since the coke import epidemic that ran everywhere from oil platforms (reportedly Operation Whale Watch) to small towns in Arkansas…
Please, tell me you didn’t think the movie American Made was fictional, did you?
Hide the facts in plain sight and no one will believe ’em. People are odd that way.
Speaking of odd, enough of this focus; sounding too much like a Peoplenomics.com report and we do like to save the most savory for the people in the loge seats.
So, In Other News
Target raises minimum wage to $13 an hour in tight labor market. All those people coming in not enough? (*See how this all works?)
What to do with social media revolutionaries? Australia could jail social media execs for showing violence.
And Facebook is in the heat for trying to get users to reveal their non FB email account passwords. Sketchy with what the MSM calls it. Bullshit is more like it. A label which fits with trying to work around anti-trust laws, too. See “Lawmakers Look to Even Playing Field Between News Media, Tech Titans” in the Wall St. Journal for the gory.
Waiting for the NukeWar
India-Pakistan tensions SURGE after 7 Indian troops killed in shelling…and this is all leading to that predicted New Arms Race in the Indo-Pak theater.
October 22, 1947 is where we “spike the historical football” so we will expect the kickoff of the nukes in mid September since the 72-year cycle is more like 71.916 years, or close enough to 71-years 11-months to have your flash googles ready.
A visit to my buddy Shane Connor’s website, ki4u.com will be timely if you aren’t already prepped. I’m not trying to be alarmist here, but I am trying to be ready.
Write when you “get rich or glow”