Saturday, 24 February 2024

Special Update 24/2/2024 A Crack-Up Boom Underway?

Baltic Dry Index. 1866 +114           Brent Crude 81.62

Spot Gold 2035                  U S 2 Year Yield 4.67 -0.02

 The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.

Ludwig von Mises.

In the global stock casinos, the final bout of stock mania AI feeding frenzy.  Is the crack-up boom underway?


Dow rises to close at fresh record, S&P 500 hits all-time high: Live updates

UPDATED FRI, FEB 23 2024 4:36 PM EST

The S&P 500 stabilized Friday after hitting another record as investors wrapped the week on a high note.

The S&P 500 inched higher by 0.03% to close at 5,088.80. Earlier Friday, the broad market index broke above 5,100 for the first time. The Dow Jones Industrial Average added 62.42 points, or 0.16%, also reaching a fresh record and closing at an all-time high of 39,131.53. The Nasdaq Composite lost 0.28% to close at 15,996.82, but had notched a fresh 52-week high earlier in the session.

All three major averages registered winning weeks. The S&P 500 advanced 1.66%, while the tech-heavy Nasdaq gained 1.4% this week. The Dow is up 1.3% for the period.

“The question from here is do investors shake that momentum? We’ve run up so far, so quickly. It might not make a lot of sense to chase that type of momentum,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

“Obviously, we haven’t seen quite the momentum as we have from technology stocks...I think that does pose some risks in terms of where the index goes ultimately, because clearly everything’s front-loaded into the technology shares,” he added.

Wall Street is coming off a monster day as Nvidia shares roared on strong quarterly results, leading the chipmaker to briefly surpass a $2 trillion valuation. On Thursday, the S&P 500 had its best day since January 2023, while the Nasdaq Composite popped nearly 3% for its best session since February 2023. The 30-stock Dow gained about 1.2%.

More

Stock market today: Live updates (cnbc.com)

 

European stocks close higher as Stoxx 600 notches fresh record; Standard Chartered up 6%

UPDATED FRI, FEB 23 2024 11:58 AM EST

European stocks closed higher Friday, extending positive momentum after the pan-European benchmark finished at a record high.

After a slow start to the week, the regional Stoxx 600 index has pushed higher over the last two sessions on a mix of data and earnings, gaining 0.4% on Friday. Autos stocks were up 1%, while technology stocks fell 0.33%.

Earnings from Standard Chartered showed an 18% increase in pre-tax profits, pushing shares up 9.8% before paring gains. Meanwhile, Allianz shares sunk 3.2% after fourth-quarter operating profits in its property division came in below expectations.

U.K. consumer confidence dipped in February, new survey data from GfK showed Friday, indicating that higher inflation continues to weigh on hopes of an economic upturn.

U.S. stocks are also scaling record levels, with the S&P 500 index breaking above 5,100 for the first time on Friday. 

In Asia-Pacific, markets finished mostly higher, with China stocks rising for the ninth straight session as investors digested property prices data.

European markets live updates: stocks, news, data and earnings (cnbc.com)

What Is a Crack-Up Boom? Definition, History, Causes and Examples 

Updated October 06, 2021

What Is a Crack-Up Boom?

A crack-up boom is an economic crisis that involves a recession in the real economy and a collapse of the monetary system due to continual credit expansion and resulting in unsustainable, rapid price increases. This concept of a crack-up boom was developed by Austrian economist Ludwig von Mises as a part of the Austrian business cycle theory (ABCT).1

The crack-up boom is characterized by two key features: 1) excessively expansionary monetary policy that, in addition to the normal consequences described in ABCT, leads to out-of-control inflation expectations and 2) a resulting bout of hyperinflation which ends in the abandonment of the currency by market participants and a simultaneous recession or depression.

More

What Is a Crack-Up Boom? Definition, History, Causes and Examples (investopedia.com)

In Europe, inflation shock, with more food price inflation to come from Ireland through to northern Europe’s 2023-2024 great rains.

 

Central Europe's shoppers still shell-shocked even as inflation ebbs

By Gergely Szakacs and Karl Badohal 

----"We expect weak consumer sentiment to persist in the European market in 2024 as consumers opt for lower prices and delay non-essential or occasional expenditure," Peter Toth, head of Central and Eastern Europe South sales area at Electrolux, told Reuters when asked about the health of demand on the European Union's eastern wing.

The reality across the region is that there are scant signs of a recovery in consumption that governments were counting on to offset weaker demand for exports from a stuttering German economy and pull the region out from last year's inflation-led downturn.

Both the Czech Republic and Hungary slid into recession, while Poland avoided it by the narrowest of margins.

Just four weeks into the new year, the Czech government cut its 2024 growth forecast citing weaker-than-expected recovery in consumption, while the Hungarian central bank has issued a similar warning.

Even in Poland, which is expected to see the sharpest wage gains in the region this year, consumer spending was off to a mixed start in January after the gross savings rate dipped into negative territory in four quarters since the start of 2022.

While a jump in vehicle and car part sales and housing renovations lifted headline retail sales data above forecasts, economists at Bank Pekao said January was a "hopeless month" for clothing, while other durable goods sales also fell.

"We remain sceptical about the potential of the Polish consumer," it said. "In our opinion, 2024 will be a year of saving rather than a consumption boom. Of the 7-8% real increase in income, Polish consumers will spend approximately half."

Data published on Wednesday showed how a steady improvement in consumer sentiment since late 2022 stalled in February amid renewed concerns about Poland's and households' economic prospects.

"The relatively low gross household savings rate compared to other central and eastern European countries could have a dampening effect on the recovery of private consumption," Fitch Ratings associate director Malgorzata Krzywicka said, while adding she still saw consumption contributing something to overall growth.

Despite some recent improvement, consumer confidence in the Czech Republic and Hungary remains weak, with grocery prices now close to those in the euro zone where disposable incomes are substantially higher.

These countries face the weakest recovery prospects in central Europe in 2024 based on the European Commission's latest forecasts, which projected 2.7% growth for Poland, below Warsaw's estimate for 3% or more.

More

Central Europe's shoppers still shell-shocked even as inflation ebbs | Reuters

 

‘Our yields are going to be appalling’: one of wettest winters in decades hits England’s farms

February 23, 2024

“We have had the wettest October, November and December since we started keeping records 27 years ago,” says Andrew Ward, a Lincolnshire-based arable farmer.

He flicks through videos on his phone of nearby fields that have been devastated by the heavy rain this winter, including one that shows him in front of what looks like a lake.

“That is my godson’s farm,” he says, pointing out the two-metre-deep water that has completely engulfed the land. “He’s been flooded since October [...] The farm was drilled and fertilised [before the rain], so he may have lost £70,000 in one go.”

Fortunately for Ward, his 650-hectare (1,600-acre) farm, which produces wheat, sugar beet, barley and beans, has not been as waterlogged, but the high rainfall has taken its toll.

“We managed to get about 25% of winter crops planted [...] Our yields this harvest are going to be appalling,” he adds.

Speak to farmers across the country and you will hear similar stories of how one of the wettest winters in decades has ruined thousands of acres of crops and put farms under tremendous financial pressure.

Few regions have been spared.

In the 12 months to January, only four of England’s 139 hydrological areas (regions around rivers, lakes and other water sources) were classed as having normal rainfall levels. Of the remaining areas, 47 were rated as having notably high levels, and 76 – more than half – were deemed exceptionally high.

The Kent area, known as “the garden of England” and home to many arable farmers, experienced its wettest 12-month period since records began.

Regions near major rivers such as the Wear, Don, Calder, Derwent, Mersey and Irwell reported the wettest six-month period since records began.

While January provided some respite, the UK Centre for Ecology and Hydrology (UKCEH) said the saturation from the previous months of heavy rain meant soil had not had a chance to dry out, and the high February rain meant problems persisted.

For the 1,500 delegates at the National Farmers’ Union (NFU) conference this week, flooding was top of the agenda in the conference halls and coffee breaks.

----The forecasts for this year’s harvest look gloomy. The Agricultural and Horticulture Development Board (AHDB) is predicting that wheat outputs will drop by a quarter.

David Eudall, the economics and analysis director at the AHDB, says: “In 2019-2020 when we had a very similar wet period through the autumn and winter for planting, we saw a 24% reduction in the planted area.

“Considering we’re in a similar area and have similar weather pattern we’d expect we’re going to see a similar magnitude of scale.”

That means production falling from about 14m tonnes of wheat, to about 10m tonnes.

The drier spring season would usually provide a chance for new crops to be sown. But increased demand for spring seed from farmers who missed out on planting in the winter because of the rain has led to shortages and higher costs.

“Seed availability is a massive problem,” says Ward. “Merchants are trying to get seed from abroad, which costs horrendous amounts of money.”

More

‘Our yields are going to be appalling’: one of wettest winters in decades hits England’s farms (msn.com)

Finally, more of the world turns against the USA for its supine response to Israel’s murderous war on the Gaza Ghetto’s women and children. And not before time too.

 

MSF slams US on Gaza at UN, says children as young as 5 want to die

By Michelle Nichols 

UNITED NATIONS, Feb 22 (Reuters) - The head of Médecins Sans Frontières (Doctors Without Borders) told the United Nations Security Council on Thursday that medical teams in the Gaza Strip have come up with a new acronym: WCNSF - wounded child, no surviving family.

"Children who do survive this war will not only bear the visible wounds of traumatic injuries, but the invisible ones too," MSF International Secretary General Christopher Lockyear told the 15-member council.

"There is a repeated displacement, constant fear and witnessing family members literally dismembered before their eyes," he said. "These psychological injuries have led children as young as five to tell us that they would prefer to die."

Lockyear slammed the United States, saying he was appalled it had repeatedly used its veto power to block the council from demanding an immediate humanitarian ceasefire in the war between Israel and Palestinian militants Hamas in Gaza.

"The people of Gaza need a ceasefire, not when practicable, but now. They need a sustained ceasefire, not a temporary period of calm," Lockyear said. "Anything short of this is gross negligence."

The U.S. has vetoed three U.N. Security Council resolutions since the start of the current fighting on Oct. 7, most recently blocking on Tuesday a demand for an immediate humanitarian ceasefire as it instead pushes council to call for a temporary ceasefire linked to the release of hostages held by Hamas.

China's U.N. Ambassador Zhang Jun told the council he felt "appalled" by Lockyear's briefing.

"We hope the tragic picture that he painted of Gaza for us can touch the conscience of a certain member of this council," Zhang said.

The United States had said it was concerned that the draft resolution it vetoed on Tuesday could jeopardize talks between the U.S., Egypt, Israel and Qatar that seek to broker a six week pause in the war and the release of hostages.

Deputy U.S. Ambassador to the U.N. Robert Wood did not acknowledge Lockyear's briefing. He said the U.S. was pushing Israel to allow more aid into Gaza and had told its ally it should not proceed with a ground offensive in Rafah in southern Gaza "in the absence of a viable plan to protect civilians."

----Britain's U.N. Ambassador Barbara Woodward described Lockyear's briefing as "harrowing." Britain abstained on Tuesday's vote, while the remaining 13 council members voted in favor of the Algerian-drafted resolution.

Slovenia's U.N. Ambassador to the Security Council, Samuel Zbogar, asked: "What kind of a council have we become if we remain untouched by the tearful briefing that we heard today by the secretary general of Médecins Sans Frontières?"

The war began when fighters from the Hamas militant group that runs Gaza attacked Israel on Oct. 7, killing 1,200 people and capturing 253 hostages, according to Israeli tallies. In retaliation, Israel launched a military assault on Gaza that health authorities say has killed nearly 30,000 Palestinians with thousands more bodies feared lost amid the ruins.

"Today our staff are back at work risking their lives once again for their patients. What are you willing to risk?" Lockyear asked the council.

MSF slams US on Gaza at UN, says children as young as 5 want to die | Reuters

Global Inflation/Stagflation/Recession Watch.   

Given our Magic Money Tree central banksters and our spendthrift politicians,  inflation/recession now needs an entire section of its own.

106 Years of Money-Printing Replicated In Mere Months…

 

Still, here’s one powerful metric that our mad-money pumpers in Washington surely didn’t notice as they ran the Fed’s printing presses red hot. To wit, the Fed’s balance sheet crossed the $5.2 trillion mark for the very first time in history on March 25, 2020.

 

That’s right. It took the Fed 106 years from the day it opened its doors for business in 1914 to reach the $5.2 trillion mark. And then it nearly replicated that figure in a matter of months.

David Stockman, Contra Corner.

Has US Debt become a global problem? Simple answer, probably, but when and why?

Government debt is never a problem, until one day, usually for unexpected reasons, suddenly it is.

The Huns, and others, in December 406 cross the frozen river Rhine and sack much of the Roman Empire. The Roman Empire in the west goes into decline.

GB foolishly gets involved in WW1 and goes bust. Later gets into WW2 for Poland, which can't be supported from GB or France, and having turned down Stalin's offer of a pact with GB and France to defend Poland, Stalin does a deal with Hitler. GB goes bust for a second time in less than 40 years.

President Biden Joe Biden weaponises the dollar, causing 2/3rds of the world to start looking for ways to de-dollarise trade!!! The latest being Egypt.

 

U.S. publicly held debt 2013-2023

Statista Research Department

 In December 2023, the public debt of the United States was around 34.2 trillion U.S. dollars, over two trillion more than in July when it was around 32.6 trillion U.S. dollars. The U.S. public debt ceiling has become one of the most prominent political issues in the States in recent years, with debate over how to handle it causing political turmoil between Democrats and Republicans.

The public debt

The public debt of the United States has risen quickly since 2000, and in 2022 was more than five times higher than in 2000. The public debt is the total outstanding debt that is owed by the federal government. This figure is comprised of debt owed to the public (for example, through bonds) and intragovernmental debt (debt owed to various governmental departments), such as Social Security.

More

Public debt U.S. by month 2023 | Statista

Gross Domestic Product, Fourth Quarter and Year 2023 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the fourth quarter of 2023 (table 1), according to the "advance" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (refer to "Source Data for the Advance Estimate" on page 3). The "second" estimate for the fourth quarter, based on more complete data, will be released on February 28, 2024.

---- Compared to the third quarter of 2023, the deceleration in real GDP in the fourth quarter primarily reflected slowdowns in private inventory investment, federal government spending, residential fixed investment, and consumer spending. Imports decelerated.

Current‑dollar GDP increased 4.8 percent at an annual rate, or $328.7 billion, in the fourth quarter to a level of $27.94 trillion. In the third quarter, GDP increased 8.3 percent, or $547.1 billion (tables 1 and 3).

More

Gross Domestic Product, Fourth Quarter and Year 2023 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

The advocates of public control cannot do without inflation. They need it in order to finance their policy of reckless spending and of lavishly subsidizing and bribing the voters.

Ludwig von Mises.

Covid-19 Corner

This section will continue until it becomes unneeded.

Two new rare Covid vaccine side effects revealed by global study of over 99 million people

February 23, 2024

A global study of over 99 million people across eight countries has identified two new harmful but very rare side effects of Covid-19 vaccines, an advance that could lead to better health monitoring of immunised people.

Researchers part of an international collaboration called the Global Vaccine Data Network (GVDN) hosted at the University of Auckland assessed 13 neurological, blood, and heart-related medical conditions to see if there was a greater risk of them in patients after receiving a Covid-19 vaccine.

The study assessed deidentified data of millions of people who received a Covid-19 vaccine, and examined if there is a greater risk of developing a medical condition in various periods after getting a vaccine compared with before the vaccine became available.

It found that some patients had heart inflammation conditions like myocarditis and pericarditis after they took mRNA vaccines, and some had muscle-weakening Guillain-Barré syndrome and a type of blood clot in the brain after taking viral vector vaccines.

Researchers also found signs of inflammation of part of the spinal cord (transverse myelitis) after taking viral vector vaccines as well as inflammation and swelling in the brain and spinal cord – also known as acute disseminated encephalomyelitis – after some people took viral vector and mRNA vaccines.

However, the chances of having a neurological event after infection with the novel coronavirus were up to 617-fold higher than following Covid-19 vaccination, suggesting that the “benefits of vaccination substantially outweigh the risks,” scientists say.

“This multi-country analysis confirmed pre-established safety signals for myocarditis, pericarditis, Guillain-Barré syndrome, and cerebral venous sinus thrombosis,” scientists wrote, adding that “other potential safety signals” requiring further studies were also identified

“The size of the population in this study increased the possibility of identifying rare potential vaccine safety signals. Single sites or regions are unlikely to have a large enough population to detect very rare signals,” study co-author Kristýna Faksová said in a statement.

Researchers are conducting further studies to build upon the current understanding of Covid-19 vaccines to better unravel their safety using big data.

“By making the data dashboards publicly available, we are able to support greater transparency, and stronger communications to the health sector and public,” Helen Petousis-Harris, another author of the study, said.

While the study identified rare safety signals following Covid-19 vaccination, scientists say “further investigation is warranted to confirm associations and assess clinical significance” of these findings.

Two new rare Covid vaccine side effects revealed by global study of over 99 million people (msn.com)

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section.

This weekend something different. The invention of the decimal point.

The invention of the decimal dot that changed mathematics forever

Michael Irving  February 21, 2024

Historians have discovered what may be the world's first decimal point, in an ancient manuscript written 150 years before its next known appearance. There have been many ways to split integers, but this little dot has proven uniquely powerful.

The mathematics we all learn at school seems so fundamental that it doesn’t feel like individual concepts in it would need “inventing,” but these pieces arose separately as scientists and mathematicians realized they were needed. For instance, scientists recently found the oldest written record of the numeral “0,” dating back 500 years earlier than previously thought.

Now, it looks like the decimal point is also older than expected. Ever since we’ve realized we sometimes need to break numbers into smaller fragments, humans have denoted the difference using various symbols – dashes, vertical lines, arcs and underscores have filled the role, but none of those have survived into modern usage. Commas and periods are the most common now, so when did they start?

Previously, the earliest known use of a period as a decimal point was thought to be an astronomical table by the German mathematician Christopher Clavius in 1593. But according to modern scientists, that kind of test is a weird place to introduce such a massive concept to the world, and Clavius didn’t really go on to use the idea much in his later writings. Basically, if he realized the need for the concept and invented a neat way to display and work with it, why didn’t he brag about it?

The answer, it seems, is that Clavius was just borrowing an older idea that had essentially been lost to time, and wasn’t the preferred method in his era. A new study has found that the decimal point dates back to the 1440s – about 150 years earlier – first appearing in the writings of Italian mathematician Giovanni Bianchini.

Bianchini was a professor of mathematics and astronomy at the University of Ferrara, but he also had a background in what we’d now call finance – he was a merchant, and managed assets and investments for a wealthy ruling family of the time. That real-world experience seems to have influenced his mathematical work, since Bianchini was known to have created his own system of dividing measurement units like feet into 10 equal parts to make them easier to work with. As fundamental as it feels to modern sensibilities, it didn’t catch on with the 15th century crowd who were used to a base-60 system.

More

The invention of the decimal dot that changed mathematics forever (newatlas.com)

This weekend’s music diversion.  Another long-forgotten maestro. Approx. 7  minutes.

Francesco Maria Veracini - Concerto à otto stromenti in D Major (3rd mvt)

F. M. Veracini: Concerto a otto stromenti (1712) - III. [no movement title] (youtube.com)

Francesco Maria Veracini (1 February 1690 – 31 October 1768) was an Italian composer and violinist, perhaps best known for his sets of violin sonatas. As a composer, according to Manfred Bukofzer, "His individual, if not subjective, style has no precedent in baroque music and clearly heralds the end of the entire era",[1] while Luigi Torchi maintained that "he rescued the imperiled music of the eighteenth century",[2] His contemporary, Charles Burney, held that "he had certainly a great share of whim and caprice, but he built his freaks on a good foundation, being an excellent contrapuntist".[3] The asteroid 10875 Veracini was named after him.

Much, more.

Francesco Maria Veracini - Wikipedia

This weekend’s chess update. Approx. 13 minutes.

Fighting Spirit is Always Rewarded!

Fighting Spirit is Always Rewarded! (youtube.com)

Finally,  the Leaning Tower of Pisa New York.  Approx. 15 minutes.

Abandoned - 1 Seaport (New York's Leaning Tower)

Abandoned - 1 Seaport (New York's Leaning Tower) (youtube.com)

The Anglo-Portuguese Alliance is the world’s oldest alliance in known history, established by the Treaty of Windsor in 1386. The Portuguese and English alliance was signed on May 19, 1386, between the Kingdom of England and the Kingdom of Portugal. These two countries have always had a strong friendship throughout the centuries, dating back to 1147 when English crusaders helped King Alfonso I capture Lisbon from the Moors.

Anglo-Portuguese Alliance: The World’s Oldest Alliance - Portugal.com

  

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