Saturday, 20 December 2025

Special Update 20/12/2025 Gold And Silver. Dress Up Friday. Belgium.

Baltic Dry Index. 2023 -48        Brent Crude 60.47

Spot Gold 4369                            Spot Silver 67.40

U S 2 Year Yield 3.48 +0.02 

US Federal Debt. 38.431 trillion US GDP 30.652 trillion

December 20, 1830. Great Britain, France, Prussia, Austria and Russia recognize Belgium.

In the stock casinos, is all news good news again? I suspect a difficult year-end ending lies ahead in 2025.

No one will want to be caught long at year-end on what will become the tofu-dregs of 2026.

With The Donald about to rig the US central bank to force lower US interest rates early next year, hastening the end of the fiat dollar reserve standard, nearly everyone is moving back into gold and silver.

Silver climbs to record high, gold posts weekly gain on rate cut bets

By Sarah Qureshi and Anmol Choubey December 19, 20257:45 PM GMT

Dec 19 (Reuters) - Silver soared to a record high on Friday, bolstered by investment demand and a supply tightness, while gold posted a weekly gain buoyed by increasing expectations of interest rate cuts by the U.S. Federal Reserve.

Spot silver rose 2.6% to $67.14 an ounce, ending the week 8.4% higher after hitting a record high of $67.45 in the session.

Spot gold rose 0.4% to $4,347.07 an ounce as of 02:17 p.m. ET (19:17 GMT), and logged a weekly gain of 1.1%. U.S. gold futures settled 0.5% higher at $4,387.3.

"(Gold and silver) are highly correlated and typically gold leads but the last two months, we saw silver lead. So, whenever you see spread that wide, people will start to pick on gold and tighten on it in the short term," said Michael Matousek, head trader at U.S. Global Investors.

Silver has soared 132% this year, far outpacing gold's 65% rise, driven by robust investment demand and supply constraints.

"ETF flows (in silver) continue to dominate that theme as well as some speculation from the retail investor," said Phillip Streible, chief market strategist at Blue Line Futures.

Macro data has further fueled optimism for rate cuts with U.S. consumer prices rising 2.7% year-on-year in November, falling short of economists' forecast of a 3.1% increase.

Separately, the U.S. Labor Department reported earlier this week that the unemployment rate rose to 4.6% in November, the highest since September 2021.

"We've seen the lower inflation data, the weakening labor report. It really reaffirms that the Federal Reserve should keep on their easing path – that's one of the main drivers. Second is a lot of the uncertainty around what central bank policy is going to entail," Streible added.

Traders continued to bet on at least two 25-basis-point interest rate cuts next year from the Fed, according to LSEG data. FEDWATCH/

Platinum gained 3.1% to $1,975.51 after touching a more than 17-year high on Thursday. Palladium was 0.8% up at $1,709.75 after hitting a nearly three-year high earlier in the session. Both metals posted weekly gains.

Silver climbs to record high, gold posts weekly gain on rate cut bets | Reuters

S&P 500 posts back-to-back gains Friday as AI trade makes a comeback: Live updates

Updated Fri, Dec 19 2025 4:47 PM EST

U.S. stocks rose on Friday, lifted by Oracle, as the artificial intelligence trade regained its footing after experiencing volatility.

The Nasdaq Composite gained 1.31%, closing at 23,307.62. The S&P 500 climbed 0.88% to end at 6,834.50, while the Dow Jones Industrial Average advanced 183.04 points, or 0.38% and settled at 48,134.89. It was the second winning day in a row for all three indexes.

Oracle shares were up 6.6% after TikTok agreed to sell its U.S. operations to a new joint venture that includes the software giant and private equity investor Silver Lake.

The jump marks a turnaround for the stock, which came under pressure this week after a report revealed that the cloud infrastructure company lost a key backer of one of its data center projects over worries about the company’s debt and AI spending levels. That dragged down other stocks linked to AI, including Broadcom and Advanced Micro Devices.

Elsewhere, shares of AI chip darling Nvidia rose about 4% after Reuters, citing sources familiar with the matter, reported that the Trump administration is reviewing the prospect of the company selling its advanced AI chips to China. Earlier this month, President Donald Trump said that he will allow Nvidia to ship its H200 AI chips to “approved customers” in the country.

Additionally, Micron Technology shares extended their gains from the previous session, rising around 7%. The stock surged 10% on Thursday after the company gave robust guidance for revenues in the current quarter, providing reassurance to investors after recent sessions were swamped with jitters over the AI trade.

“The kind of onslaught of issuance from some of the hyperscalers, some of the AI trades, could weigh on markets into 2026,” Tom Garretson, senior portfolio strategist at RBC Wealth Management, said to CNBC. “But again, these are kind of some of the best-rated companies in terms of credit qualities. They obviously have the capacity to ramp up debt to finance some of this stuff.”

“We’re still counting on some of the capex spend kind of supporting a broader or probably better growth backdrop,” he also said.

This comes after the S&P 500 and the Dow both snapped their four-day losing streaks in the previous session. With Friday’s moves, the broad-based index eked out a 0.1% gain, while the Nasdaq advanced 0.5%. The Dow, however, slipped 0.7%.

Nike was among the day’s losers, as shares slid 10.5% after the sports apparel giant saw revenue in its Greater China market decline during the fiscal second quarter. The company is also feeling the pain of tariff increases, noting a hit to its gross margins due to the levies.

Stock market news for Dec. 19, 2025

US Consumer Sentiment Has Fallen 30% Since Last December

December 19, 2025 at 11:09 PM GMT

The good news for the US economy is that consumer sentiment rose in December. The bad news is it rose by less than expected, with Americans remaining depressed over affordability concerns (despite a certain someone’s claim it’s all a “hoax”). The University of Michigan’s final December sentiment index climbed 1.9 points to 52.9, while the median estimate in a Bloomberg survey of economists called for a reading of 53.5.

Then there’s the worse news: “Sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy,” Joanne Hsu, director of the survey, said in a statement.

Markets however didn’t seem bothered, with stocks rising while traders faced the expiration of a record pile of options that threatened to trigger sudden price swings.

A rally in several tech names that have been under scrutiny over their artificial-intelligence spending lifted equities. The back-to-back advance in the S&P 500 wiped out its loss for the week. Nvidia led gains in megacaps and even Oracle surged 7%. Here’s your markets wrapDavid E. Rovella

US Consumer Sentiment Has Fallen 30% Since Last Year: Evening Briefing Americas - Bloomberg

In other news.

Everyday items cost more than ever—how much prices have risen since 2020

Published Thu, Dec 18 2025 3:05 PM EST

Even with a lower-than-expected inflation reading Thursday, the cost of everyday goods and services remains much higher than it was at the start of the decade.

Prices rose 2.7% over the past year, according to the consumer price index, which tracks changes in the cost of everyday items such as groceries, shelter, clothing, health care and transportation.

While that marks a sharper-than-expected slowdown from October’s 3% pace and brings inflation closer to the Federal Reserve’s 2% target, it has remained above the Fed’s goal since March 2021.

The cumulative effect of those increases continues to strain household budgets, says Scott Anderson, chief U.S. economist at BMO Harris Bank.

“We’re all comparing our grocery bills to what our money could buy in 2019 and not walking away with a warm and fuzzy feeling,” Anderson tells CNBC Make It.

Overall prices are up about 25% since January 2020, based on CPI data — more than double the roughly 10% cumulative inflation seen in the five years before that.

Feeling the pinch

Wages have largely kept up with inflation since 2020 by most federal measures of income, according to a July 2025 report from Brookings. Still, not every worker has seen those gains, says Anderson.

“Wage gains tend to be higher for higher-skilled workers than lower-skilled workers, and in industries like financial services, information services and manufacturing sectors,” he says.

That uneven pattern may help explain why confidence remains weak, even with relatively low unemployment and steady overall wage growth.

Consumer sentiment — a closely watched measure of household confidence — is near historic lows, based on a monthly University of Michigan survey. The survey asks households how their finances compare with a year ago, whether they expect their finances to improve in the year ahead and whether now is a good time to make major purchases.

The latest index reading fell to 51 in November, a level last seen during the inflation surge of 2022, when the year-over-year inflation rate reached a peak of 9.1%.

Similarly, a recent Bankrate survey found that 32% of Americans expect their finances to worsen in 2026, the highest level of pessimism since the annual survey began in 2018. Inflation stood out as the top concern, cited by nearly two-thirds of respondents — far more often than income, debt or interest rates.

“The cost of living still feels like it’s rising for households who are now paying a lot more for food, electricity and housing than they were for several years before inflation shot up,” says Atsi Sheth, chief credit officer at Moody’s Ratings.

How much everyday prices have risen since 2020

Belgium is a country invented by the British to annoy the French.

Charles de Gaulle

Global Inflation/Stagflation/Recession Watch.

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

At the heart of capitalism is creative destruction.

Joseph A. Schumpeter

Bank of Japan raises benchmark rates to highest in 30 years, lifting 10-year JGB yield past 2%

Published Thu, Dec 18 2025 10:26 PM EST

Japan’s central bank on Friday raised its short-term rates to a three-decade high, driving a sell-off in government bonds, while signaling its readiness to tighten further as it marches ahead with policy normalization.

The Bank of Japan raised benchmark rates by 25 basis points to 0.75%, their highest level since 1995, and in line with expectations of economists polled by Reuters.

The BOJ said that real interest rates are expected to remain “significantly negative,” adding that accommodative financial conditions will continue to firmly support economic activity.

Following the decision, the yield on 10-year Japanese government bonds rose about 5 basis points to 2.019%, while the 20-year JGB yield climbed 3 basis points to 2.975%, both reaching their highest since 1999.

The yen weakened 0.25% to 155.92 against the dollar, and the benchmark Nikkei 225 stock index gained 1.28%.

Japan embarked on policy normalization last year, abandoning the world’s only negative interest rate regime that had been in place since 2016. Since then, the BOJ has consistently maintained its stance on gradually lifting rates, stating that its goal was to see a “virtuous cycle” of rising wages and prices.

Inflation has run above above the BOJ’s 2% target for 44 straight months, with data released earlier in the day showing consumer price growth at 2.9% in November. High inflation has pressured real wages that have been declining for 10 months in a row, according to labor ministry data.

The BOJ projected that core inflation — which strips out the prices of fresh food — is likely to decelerate below 2% from April to September 2026, due to a slower rise in food prices as well as the effects of government measures aimed at addressing rising prices.

Higher rates risk exacerbating the downturn in the Japanese economy. Revised GDP numbers for the third quarter showed that economy shrank more than initially estimated, contracting 0.6% quarter on quarter, and 2.3% on an annualized basis.

The BOJ said in its statement that while weakness has been seen in the economy, corporate profits were likely to remain high, and firms are expected to continue raising wages in 2026.

More

Bank of Japan raises short-term interest rates to highest in 30 years

Yen falls after BOJ raises rates, stays vague on tightening path

By Tom Westbrook  December 19, 2025 8:15 AM GMT

SINGAPORE, Dec 19 (Reuters) - The yen weakened in volatile trade on Friday after the Bank of Japan delivered a widely expected rate hike, while its governor offered few hints on the timing of future increases even as he left the door open to further tightening.

The yen initially fell against the dollar after the BOJ raised its policy rate to 0.75% from 0.5% in a move that had been well telegraphed by policymakers, prompting traders to sell the currency on the fact.

Losses in the Japanese currency extended following BOJ Governor Kazuo Ueda's post-meeting press conference, where he remained vague on the exact timing and pace of future interest rate hikes. It was last 0.6% weaker at 156.53 per dollar.

The euro rose to a record high of 183.25 yen . Sterling gained 0.52% to 209.16 yen .

In Friday's statement, the BOJ maintained its view that underlying inflation will converge around its 2% target in the latter half of its three-year projection period through fiscal 2027.

But hawkish board members Hajime Takata and Naoki Tamura dissented to the view. Takata said underlying inflation has already achieved the target, while Tamura said it would do so as soon as the middle of the three-year projection period.

"There seems to be a conversation going on and the reaction we're seeing in the market, in my belief, is about future moves from the BOJ...(they're) not dead set on another hike," said Bart Wakabayashi, Tokyo branch manager at State Street, in the wake of the BOJ decision earlier on Friday.

"I do believe there's consensus that 1% or 1.25% is sort of the neutral rate at the moment, it just seems like it's going to be a bit of a steeper hill for the BOJ to get there."

The BOJ again noted real rates were at "significantly" low levels even after the hike, and pledged to continue tightening should the economy and inflation pan out as forecast.

EURO DIPS AS LAGARDE REBUFFS HAWKS

Overnight, the dollar had briefly weakened following a sharp and unexpected fall in U.S. inflation, but investors were not sure how far to trust the data since collection was interrupted by the U.S. government shutdown, and the move soon retraced.

More

Yen falls after BOJ raises rates, stays vague on tightening path | Reuters

Technology Update.

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

Could Iron–Sodium Batteries Replace Lithium Ion?

Iron–sodium batteries gain momentum for long duration storage; Inlyte Energy milestone shows potential to enhance grid reliability and resilience.

December 12, 2025

The energy storage market is entering a new phase where non-lithium chemistries are gaining traction. Iron–sodium batteries, a high-temperature sodium metal chloride chemistry that incorporates iron to reduce cost and reliance on constrained metals, are among the most promising contenders. The question isn’t whether they will replace lithium-ion in every market, but where they can take the lead.

Market momentum for non‑lithium chemistries

Lithium-ion remains the workhorse for electric vehicles (EVs), portable devices, and short- to medium-duration grid applications thanks to its energy density, fast response, and mature manufacturing. Yet the industry’s rapid growth and the need to diversify supply chains have increased interest in chemistries based on abundant elements such as sodium and iron. These systems avoid flammable liquid electrolytes, offer robust safety characteristics, and aim to deliver utility‑scale capacity without the cost volatility tied to lithium, nickel, and cobalt. As market volumes rise, portfolio thinking—matching technology to task—becomes a commercial imperative, not just a technical preference.

Bridging the long-duration gap

Long-duration energy storage (LDES) is where iron–sodium can credibly shift the balance. The U.S. Department of Energy projects the future U.S. grid will need more than 225 gigawatts of LDES by 2050. Lithium-ion batteries perform well for one to four hours, often up to six, but their economic viability and temperature control become more difficult as the duration extends to eight, twelve, or twenty-four hours. 

Related:Long-Duration Energy Storage Alternative Chemistries

Iron–sodium batteries are engineered for multi-hour to multi-day output, leveraging a solid electrolyte and elevated operating temperatures to deliver steady performance with strong safety margins. They’re designed to firm variable renewables, improve resilience during extreme weather, and help defer costly transmission and distribution upgrades—exactly the roles LDES must play to make a clean grid reliable and affordable.

More

Could Iron–Sodium Batteries Replace Lithium Ion?

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

Exponent Calculator

Enter values into any two of the input fields to solve for the third.

Exponent Calculator

This weekend’s music diversion, time for another Heinichen. Approx. 8 minutes.

Heinichen Dresden Concerto in F Seibel 233

Heinichen Dresden Concerto in F Seibel 233

Next, more forgotten British maths history. Approx. 13 minutes.

Babbage's Puzzle – Computerphile

Babbage's Puzzle - Computerphile - YouTube

Finally, how Admiral Nelson won at the Nile. Approx. 29 minutes.

Nelson's Battles in 3D: The Nile

Nelson's Battles in 3D: The Nile

Next weekend, Nelson’s great victory at Trafalgar.

As a matter of fact, capitalist economy is not and cannot be stationary. Nor is it merely expanding in a steady manner. It is incessantly being revolutionized from within by new enterprise, i.e., by the intrusion of new commodities or new methods of production or new commercial opportunities into the industrial structure as it exists at any moment.

Joseph A. Schumpeter

Friday, 19 December 2025

The BoE Cut. ECB Unchanged. That 1776 “Warrior Dividend”. US Dodgy Data.

Baltic Dry Index. 2071 -50     Brent Crude 59.64

Spot Gold  4356                        Spot Silver 66.03

US 2 Year Yield 3.46  -0.03

US Federal Debt. 38.427 trillion  US GDP 31.650 trillion.

To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection -- a procedure which can only lead to a much more seve crisis as soon as the credit expansion comes to an end.

Friedrich August von Hayek

US stocks finally rallied, but on dodgy inflation data. Garbage in, garbage out.

S&P 500 futures are little changed after index ends four-day losing run: Live updates

Updated Fri, Dec 19 2025 7:06 PM EST

Stock futures were little changed Thursday night after major U.S. indexes closed higher, buoyed by cool inflation data.

S&P 500 futures traded near the flatline, while Nasdaq 100 futures lost 0.1%. Futures tied to the Dow Jones Industrial Average dropped 86 points, or 0.2%.

In extended trading, Nike shares slid 10%, as the sports apparel giant saw revenue in its Greater China market decline during the fiscal second quarter. The company is also feeling the pain of tariff increases, noting a hit to its gross margins due to the levies.

The S&P 500 and the Dow both snapped their four-day losing streaks in the previous session. The Nasdaq Composite also rose, gaining 1.4%, as several tech stocks recouped losses from the day before.

Stocks on Thursday climbed after a lighter-than-expected inflation reading from November’s consumer price index report and gains in the market’s tech leaders. The CPI data — which reflected a 2.7% year-over-year jump in consumer prices, lower than expected — gave investors hope that the Federal Reserve will lower interest rates in 2026. To be sure, some economists warned that the methodology used in the data release — which was the first CPI report since the government shutdown this fall — could lead to a reacceleration in December’s inflation report.

Shares of big-name tech stocks and chipmakers also rose throughout the day after Micron Technology gave robust guidance for revenues in the current quarter, saying that “demand is substantially higher than supply for the foreseeable future.” The results reassured investors after recent sessions were swamped with jitters over the artificial intelligence trade. Each of the Magnificent Seven stocks closed Thursday in the green.

To be sure, semiconductor stocks remain about 8% below their highs.

“The significance and timing of the returns on AI investment remain uncertain,” Magdalena Ocampo, market strategist at Principal Asset Management, wrote in a note to clients. “However, monetary easing, fiscal policy, and easing trade uncertainty, combined with AI spending as a new growth engine, point to a more favorable macro backdrop in 2026. The result could be an equity rally that expands from just a handful of dominant AI leaders to a broader group, particularly those with tangible gains from AI adoption.”

This week, the S&P 500 and 30-stock Dow are down about 0.8% and 1%, respectively. The Nasdaq is down 0.8% week to date.

Friday could see volatile market activity as options on four types of securities are set to expire on the same day, an event known as “quadruple witching.” More than $7.1 trillion in notional options exposure is set to expire this Friday, making it the largest options expiration on record, according to Goldman Sachs.

Stock market today: Live updates

Economists warn of flaws in US inflation report

Concerns that November figures showing fall to 2.7% distorted by missing data after shutdown

18 December 2025

Wall Street economists have warned that November’s US inflation report, which showed a sharp decline in price growth, was flawed because of missing data in the wake of the recent government shutdown.

US consumer prices rose 2.7 per cent in November from the same period the previous year, according to official data from the Bureau of Labor Statistics. The figure was well below expectations in a Bloomberg poll of 3.1 per cent and September’s rise of 3 per cent.

Core inflation, which strips out volatile food and energy prices, was 2.6 per cent, compared with expectations of 3 per cent.

The report comes after the recent government shutdown halted data collection for a six-week period, forcing the BLS to scrap its October release and estimate many prices rather than using observed data from surveys.

 “You’ve got to take it with a grain of salt,” said Diane Swonk, chief economist at KPMG US.

She added: “Things that should be going up are going down and things that should be going down are going up. So it’s confusing and it doesn’t quite square with prices that we’ve observed.”

Inflation had remained stubbornly elevated in recent months, providing a political issue for President Donald Trump as voters grow frustrated with a worsening cost-of-living crunch.  The White House was quick to seize on Thursday’s release as evidence that Trump’s policies were helping to curb inflation. “I’m not saying that we are going to declare victory yet on the price problem, but this is just an astonishingly good CPI report,” said Kevin Hassett, director of the National Economic Council and a frontrunner to be next chair of the Federal Reserve.

The bond market largely shrugged off the inflation report. Yields on short-term government debt briefly tumbled to a two-month low as prices rose, before soon retracing about half of that move.

Wall Street’s S&P 500 share index closed 0.8 per cent higher on Thursday and the Nasdaq Composite climbed 1.4 per cent — in a fresh bout of volatility for equities.

“Markets don’t care [about the data] because the data doesn’t pass the smell test,” said Jon Hill, head of US inflation strategy at Barclays.

“Given the lack of explanation about how the BLS made these decisions, it’s hard to take at face value. Because it was such a big miss, and because it’s so hard for the market to take the data literally, investors don’t want to bet the house.”

Analysts said the government shutdown distorted the figures. The BLS likely zeroed out some inflation readings for the period when it was unable to collect data, notably in housing costs, which accounts for a third of the headline figure. Black Friday discount deals in late November when surveys restarted may have also skewed readings lower.

Michael Hanson, a senior economist at Wall Street bank JPMorgan, said the lower than expected figures “suggest that the BLS may have held fixed a number of prices it was not able to collect in October, which likely means a material downward bias in the current numbers that will be reversed in coming months as full price collection resumes”.

More

RemovePaywall | Free online paywall remover

The next rare earths crunch? Top mining CEO warns copper supply challenges aren’t going anywhere

Published Thu, Dec 18 2025 3:59 AM EST

Copper supply constraints have led to soaring prices and stockpiling in 2025 – and according to the CEO of one of the world’s largest mining firms, elevated prices aren’t likely to climb down anytime soon.

Copper prices hit a record high of $11,952 per metric ton on Friday, the latest record high this year driven by supply concerns, mining disruptions and fears of U.S. tariffs. Three-month copper on the London Metal Exchange ended Wednesday’s session at $11,592 per metric ton.

In New York, copper futures have surged by around 34% since the start of the year, putting them on track for their best year since 2009, when copper gained 137.34%.

Speaking to CNBC at the Conference de Paris in the French capital on Wednesday, Mike Henry, CEO of mining giant BHP stressed that copper is a “critically important” metal, underpinning the functioning of the everyday economy while also being a crucial component in decarbonization and digitalization technologies. The red metal is used in electrical equipment, construction and industrial machinery.

“It’s about a $300-400 billion per annum market versus rare earths, which you all would have heard about, which is about $20 billion per annum. So it’s a very large market,” Henry said at the conference, which was organized by the Inernational Economic Forum of the Americas.

Copper, like rare earth minerals — which also play a critical role in the production of various goods from semiconductors to military hardware — is coming under pressure as supply is being outpaced by surging demand. With “demand growing strongly,” Henry suggested it was possible that the bull run on copper could be extended for years to come.

“We expect [demand’s] going to be up by 70% between now and 2050, but supply is becoming more and more difficult to bring on,” he told CNBC on Wednesday. “Fewer mines are being found. The mines that are being found are oftentimes smaller, lower grade in tougher jurisdictions, and so it’s hard to bring those mines on quickly.”

BHP is the world’s biggest copper producer. CEO Henry said that over the course of the past year, the market had gone from a slight oversupply to bottlenecks, noting that 12 to 18 months ago market watchers were expecting 2025 to be “a little bit soft” for the red metal.

“All it took was a few disruptions at a few copper mines around the world to all of a sudden send the market into deficit, and to see copper prices reach record highs,” he said. We’re expecting that between now and the end of the decade, that crunch is only going to get tighter.”

Pressed on his expectations for prices, Henry stressed that predicting price moves is difficult. However, he also emphasized that a resolution to the supply shortages was not imminent.  

“What I can say with a high degree of confidence is that the market’s tight right now, and it doesn’t take much to send prices north,” he said, also noting that other metals — including gold and silver — had been on record-breaking runs this year.

“Growing attention [on] the broader basket of commodities could be supportive for copper pricing as well,” Henry said.

More

Copper price: BHP CEO, investment banks see bull run in 2026

In other news, a Trump “warrior dividend”, or a panic Trump QE to try to head off an early 2026 US recession? If the later, President Trump may get his “one percent or lower” Fed Funds rate but due to the next recession; but that will just add to US dollar debasement.  More upward pressure on gold and silver prices.

Troops will receive $1,776 checks before Christmas, Trump announces

December 18, 2025

President Donald Trump announced Wednesday that he would be issuing checks to members of the United States military for $1,776 – in honor of the country’s founding – calling the payment the “Warrior Dividend.”

“1,450,000 military service members will receive a special, we call, warrior dividend before Christmas. A warrior dividend. In honor of our nation’s founding in 1776, we are sending every soldier $1,776,” Trump said during his televised address to the nation.

“And the checks are already on the way.”

Trump credited tariffs for bringing in money, though he didn’t say directly how the initiative would be funded.

“We made a lot more money than anybody thought because of tariffs, and the bill helped us along. Nobody deserves it more than our military, and I say congratulations to everybody,” Trump said.

Defense Secretary Pete Hegseth directed the Pentagon to pay out $2.6 billion as a “one-time basic allowance for housing supplement to all eligible service members in pay grades O-6 and below,” a senior administration official told CNN.

Roughly 1.28 million Active Component military members and 174,000 Reserve Component military members will receive this supplement, the official said. In Trump’s policy agenda that passed over the summer, Congress appropriated $2.9 billion to the Defense Department, which the White House has rebranded as the Department of War, to supplement the Basic Allowance for Housing entitlement, according to the official.

“This one-time payment exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families,” the official said.

CNN has reached out to Treasury Department for more information on the payments.

Warrior dividend: Trump announces $1,776 bonus for military service members | CNN Politics

Global Inflation/Stagflation/Recession Watch.

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

Bank of England lowers rates after tight vote but signals caution about further cuts

December 18, 2025 12:02 PM GMT

LONDON, Dec 18 (Reuters) - The Bank of England cut interest rates on Thursday after a narrow vote by policymakers but it signalled that the already gradual pace of lowering borrowing costs might slow further.

After a sharp drop in inflation in data this week and a new forecast from BoE staff that growth will stagnate in late 2025, five Monetary Policy Committee members voted to lower the BoE's benchmark rate for the fourth time in 2025 to 3.75% from 4.0%.

The four other members supported no change as they worried about the potential for Britain inflation's rate - still the highest among the Group of Seven economies - to remain too high.

Governor Andrew Bailey changed his view and voted for a cut, tipping the balance on the committee.

"We still think rates are on a gradual path downward," Bailey said in a statement. "But with every cut we make, how much further we go becomes a closer call."

He said he did not yet see proof of a sharper downturn in the jobs market but he also noted inflation expectations had not dropped significantly so far.

Analysts polled by Reuters last week had mostly expected a 5-4 vote for a rate reduction.

The MPC echoed Bailey's words in its end-of-meeting statement. But some senior policymakers who voted against the rate cut made clear their worries.

Deputy Governor Clare Lombardelli said she remained more concerned about the risk of inflation proving stronger than expected and the recent data had only softened "at the margin."

Chief Economist Huw Pill said he saw a bigger risk of inflation getting stuck too high than too low.

The quarter-point cut took Bank Rate to its lowest level in nearly three years, although it is still almost double the equivalent rate of the European Central Bank.

British inflation remains higher than among peer economies - in part because of finance minister Rachel Reeves' decision last year to raise taxes on employers - even after it fell unexpectedly sharply to 3.2% in data released on Wednesday.

The BoE said inflation was "now expected to fall back towards target more quickly in the near term" and the risk that it would persist at high levels had "become somewhat less pronounced." The possibility of weaker demand pushing it too low remained, the post-meeting statement said.

Data on Tuesday showed a weakening jobs market including the highest unemployment rate since 2021 and a slowdown in private sector pay growth.

The BoE said it now expected zero economic growth in the last three months of 2025, down from a forecast of 0.3% growth made as recently as last month, although it thought underlying growth was stronger at about 0.2% a quarter.

Britain's economy shrank by 0.1% in the three months to October amid reports that businesses put investment projects on ice in the run-up to Reeves' budget on November 26.

The BoE said it expected the budget would bring down inflation in 2026 by about half a percentage point due to one-off measures which would then push it up a bit in the following two years.

The budget measures would add at most 0.2 percentage points to the size of the economy in 2026 and 2027.

Other major central banks are believed to be close to halting their rate cuts - the U.S. Federal Reserve last week signalled one more in 2026 while the ECB has probably already come to the end of its monetary loosening cycle.

The ECB was expected to keep rates on hold later on Thursday.

Bank of England lowers rates after tight vote but signals caution about further cuts | Reuters

European Central Bank holds rates steady in last gathering of 2025

Published Wed, Dec 17 2025 9:10 AM EST Updated 35 Min Ago

Investors are assessing the last interest-rate decisions of 2025, with four of Europe’s central banks announcing their monetary policies and macroeconomic outlooks on Thursday.

The European Central Bank, Bank of England, Riksbank, and Norges Bank all concluded meetings today, but only one of them changed its base rate.

European Central Bank

The ECB kept rates on hold on Thursday, as widely expected.

Ahead of the vote, investors were more interested in any commentary on the apparent growing tensions inside the governing council, with some members, like Isabel Schnabel, openly endorsing the market’s view that the next rate move will be a hike, while others think there is still room to cut. 

Christian Kopf, who heads the bond portfolio management of German asset manager Union Investment, told CNBC: “I don’t expect and rate change in the Euro area for the time being. If there is a change in 2026, most likely we will get a rate hike towards the end of 2026 or at the beginning of 2027.”

The ECB hiked its growth outlook for the euro zone, predicting growth of up to 1.4% in 2025 and 1.2% in 2026.

Norges Bank

Norway’s central bank kept rates on hold at 4% on Thursday, with economists suggesting the next rate cut might not come until summer 2026. Norges Bank announced its policy decision at 10 a.m. local time, 9 a.m. London time.

The bank said Thursday that the outlook is uncertain “but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of the coming year.” For now, however, Norges Bank’s policymakers judged “that a restrictive monetary policy is still needed.  Inflation is still too high.” It added that its current forecast “is consistent with 1-2 rate cuts next year.”

Morten Lund, Scandinavia chief economist at JPMorgan, had commented before the rate hold that the bank’s guidance on Thursday “should be a push-back against markets’ rising expectations” that it will cut rates in March, which he said was currently seen as “a coin toss.”

Instead, JPMorgan expects a rate cut to next take place in June, although Norges Bank was not, on Thursday, explicit about the timing of a cut.

More

ECB, BOE, Riksbank and Norges Bank make final calls of 2025

Covid-19 Corner

This section will continue only occasionally when something of interest occurs.

China files tit-for-tat lawsuit against Missouri for COVID-19 claims

18 December 2025

China launched a counter lawsuit against the U.S. state of Missouri for over $50 billion and an apology from major American news outlets for causing “economic and reputational threat” with allegations related to the Covid-19 pandemic.

China’s Wuhan city, where Covid-19 was first detected, mounted the legal challenge after Missouri filed a lawsuit against China for hoarding personal protective equipment in the early months of the pandemic.

A federal judge gave a ruling in favour of Missouri earlier this year after China declined to participate in the trial. It called the lawsuit "very absurd" when it was filed in 2020.

According to court documents, China’s lawsuit was filed by the municipal government of Wuhan, the Chinese Academy of Sciences, and the Wuhan Institute of Virology.

The lawsuit accused Missouri and several U.S. officials of damaging China’s reputation and “soft power”, particularly that of the Wuhan Institute of Virology.

It named three defendants, including the state of Missouri, U.S. Senator Eric Schmitt, and Missouri’s former Attorney General Andrew Bailey.

It alleged that the three parties “fabricated numerous disinformation”, provided fictional evidence of losses and slandered various disinformation about China, including that it obstruct investigation into the origin of the virus, and covered up the information related to the virus.

It said that politicising Covid-19 and stigmatising China has caused reputation damage and “profound and extremely enormous losses” to the plaintiffs.

The lawsuit also accused the state of “deeply endangering sovereignty, security and development interests of China” through its “vexatious” litigation.

China is demanding public apologies in major U.S. and Chinese media outlets, including the New York Times, CNN, Wall Street JournalWashington Post, YouTube and other American media or internet platforms,

It is also demanding compensation of about $50.5 billion as well as any legal fees which occur, and the right to claim further compensation.

The three Chinese plaintiffs were among the defendants in a lawsuit filed five years ago by Schmitt, then Missouri’s Attorney General, against China, the Chinese Communist Party, several national ministries and the Hubei provincial government.

The lawsuit alleged that Chinese officials were to blame for the pandemic.

In 2022, the American lawsuit took an unusual turn when U.S. District Judge Stephen Limbaugh initially dismissed the lawsuit, saying Missouri couldn't sue China, its Communist Party and seven other government or scientific agencies.

But an appeals court allowed one part of the lawsuit to proceed: the allegation that China hoarded personal protective equipment, such as respirator masks, medical gowns, and gloves.

After Chinese officials didn't respond, Judge Limbaugh accepted Missouri's estimate of past and potential future damages of more than $8 billion, tripled it as federal law allows, and added 3.91 percent interest until it's collected.

Last month, Missouri escalated its efforts to collect, asking the U.S. State Department to formally notify China that the state intends to pursue assets with full or partial Chinese government ownership to satisfy the judgment.

Catherine Hanaway, who inherited the lawsuit when she was appointed state Attorney General, said it was a “stalling tactic”.

“I find it extremely telling that the Chinese blame our great state for ‘belittling the social evaluation’ of The Wuhan Institute of Virology. This lawsuit is a stalling tactic and tells me that we have been on the right side of this issue all along,” said Attorney General Hanaway.

“We stand undeterred in our mission to collect on our $24 billion judgment that was lawfully handed down in federal court.”

More

China files tit-for-tat lawsuit against Missouri for COVID-19 claims

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

Exclusive: How China built its ‘Manhattan Project’ to rival the West in AI chips

December 18, 2025 4:11 AM GMT

SINGAPORE, Dec 17 (Reuters) - In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence, smartphones and weapons central to Western military dominance, Reuters has learned.

Completed in early 2025 and now undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML (ASML.AS), opens new tab who reverse-engineered the company's extreme ultraviolet lithography machines or EUVs, according to two people with knowledge of the project

EUV machines sit at the heart of a technological Cold War. They use beams of extreme ultraviolet light to etch circuits thousands of times thinner than a human hair onto silicon wafers, currently a capability monopolized by the West. The smaller the circuits, the more powerful the chips.

China's machine is operational and successfully generating extreme ultraviolet light, but has not yet produced working chips, the people said.

In April, ASML CEO Christophe Fouquet said that China would need "many, many years" to develop such technology. But the existence of this prototype, reported by Reuters for the first time, suggests China may be years closer to achieving semiconductor independence than analysts anticipated.

Nevertheless, China still faces major technical challenges, particularly in replicating the precision optical systems that Western suppliers produce.

The availability of parts from older ASML machines on secondary markets has allowed China to build a domestic prototype, with the government setting a goal of producing working chips on the prototype by 2028, according to the two people.

But those close to the project say a more realistic target is 2030, which is still years earlier than the decade that analysts believed it would take China to match the West on chips.

Chinese authorities did not respond to requests for comment.

The breakthrough marks the culmination of a six-year government initiative to achieve semiconductor self-sufficiency, one of President Xi Jinping's highest priorities. While China's semiconductor goals have been public, the Shenzhen EUV project has been conducted in secret, according to the people.

The project falls under the country's semiconductor strategy, which state media has identified as being run by Xi Jinping confidant Ding Xuexiang, who heads the Communist Party's Central Science and Technology Commission.

Chinese electronics giant Huawei plays a key role coordinating a web of companies and state research institutes across the country involving thousands of engineers, according to the two people and a third source.

The people described it as China's version of the Manhattan Project, the U.S. wartime effort to develop the atomic bomb.

“The aim is for China to eventually be able to make advanced chips on machines that are entirely China-made,” one of the people said. "China wants the United States 100% kicked out of its supply chains."

Huawei, the State Council of China, the Chinese Embassy in Washington, and China's Ministry of Industry and Information Technology did not respond to requests for comment.

Until now, only one company has mastered EUV technology: ASML, headquartered in Veldhoven, Netherlands. Its machines, which cost around $250 million, are indispensable for manufacturing the most advanced chips designed by companies like Nvidia and AMD—and produced by chipmakers such as TSMC, Intel, and Samsung.

More

Exclusive: How China built its ‘Manhattan Project’ to rival the West in AI chips | Reuters

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

Another weekend and the last weekend before Christmas. Have a great weekend everyone.

Tomorrow, how Admiral Nelson defeated Napoleon’s fleet at the Battle of the Nile, trapping Napoleon and his army in the sands of Egypt.

What our generation has forgotten is that the system of private property is the most important guarantee of freedom, not only for those who own property, but scarcely less for those who do not. It is only because the control of the means of production is divided among many people acting independently that nobody has complete power over us, that we as individuals can decide what to do with ourselves.

Friedrich August von Hayek