Baltic
Dry Index. 1761 -42 Brent Crude 65.33
Spot Gold 4967 Spot Silver 99.18
US 2 Year Yield 3.61 +0.01
US Federal Debt. 38.642 trillion US GDP 31.088 trillion.
Once the dollar begins to collapse beneath the weight of all this new deficit spending, accumulation of contingency liabilities and the socialization of our economy, commodity prices and interest rates will head skyward.
Peter Schiff
Other than another Trump TACO on Greenland, was anything really accomplished in Davos 2026?
Well the stock casinos got a relief rally of sorts, until President Trump announces his next assault on the global economy.
Look away from the gold and silver price now.
The damage done to US – EU-Canada international relations in January 2026, will not quickly be undone.
Trump’s New Nato Slur.
Published: 14:48, 22 January
2026 | Updated: 17:25, 22 January 2026
Donald
Trump has aimed another barb at Nato allies, claiming European
personnel stayed 'off the front lines' in Afghanistan.
It comes after Nato secretary
general Mark Rutte felt compelled to deliver a reality check to the US
President, who tried to make the case at the World Economic Forum (WEF) that
the Western alliance would not 'be there for us' if America came calling.
In an interview with Fox News on Thursday,
Trump said: 'I've always said, will they be there if we ever needed them?
That's really the ultimate test, and I'm not sure of that.'
'We've never needed them,' he said.
'They'll say they sent some troops to Afghanistan ... and they did, they stayed
a little back, a little off the frontlines.'
In contrast, 'we've been very good to
Europe and to many other countries', Trump said, referencing the US, but added:
'It has to be a two-way street.'
Speaking in Davos yesterday, the US
President made a similar swipe against the 32-member military alliance, saying:
'I know them all very well. I’m not sure that they’d be there. I know we’d be
there for them. I don’t know that they would be there for us.'
The claims, however, overlook the fact
that Nato member countries suffered hundreds of deaths during the Afghanistan
war, triggered after the September 11 attack on the World Trade Centre in New
York.
Britain alone lost 457 troops, while
another 2,000 military and civilian personnel were wounded in action. France, Germany, Italy and
Denmark also suffered many deaths.
Following the speech, Nato chief Rutte
corrected the record to the US President, telling him: 'There’s one thing I
heard you say yesterday and today. You were not absolutely sure Europeans would
come to the rescue of the US if you will be attacked. Let me tell you, they
will and they did in Afghanistan.'
More
Asia markets mostly advance as Bank of Japan
leaves interest rates on hold
Published Thu, Jan 22 2026 6:53 PM EST
Asia-Pacific markets rose Friday, tracking
Wall Street gains as geopolitical concerns eased and investors assessed Bank of
Japan’s decision to keep interest rates steady.
Japan’s central bank held its
key policy rate at 0.75% as the country prepares to go into an election in
which Prime Minister Sanae Takaichi, who advocates for monetary easing and
fiscal support, will face voters for the first time. Takaichi on Friday
dissolved Japan’s Lower House, with the country set to go to polls in a snap
election on Feb. 8.
Japan’s 40-year government bond yield slid
over 4 basis points to 3.953% after hitting a record high on Tuesday.
Meanwhile, yields on shorter maturities
climbed. The 10-year Japan
government bond yield rose by around 2 basis points to 2.259%, while
yields on the 20-year
tenor inched higher by less than a basis point to around 3.204%.
HSBC said it expects the Bank of Japan’s
next 25 basis point hike to come in July 2026, but warned that further yen
depreciation could bring forward the timing and open the door to more rate
increases.
The bank flagged April as a possible
alternative, citing the release of the BOJ’s quarterly Outlook report and
improved clarity on this year’s Shunto wage talks, with another 25 bps hike
potentially following later in 2026.
Japan’s headline inflation rate in December slowed
sharply to 2.1%, its lowest level since March 2022. Its core inflation rate
came in at 2.4% on year, in line with analysts’ estimates.
Japan’s Nikkei 225 was 0.3% higher,
while the Topix added 0.6%. South Korea’s Kospi rose 0.8%, while the small-cap
Kosdaq was up 1.86%.
Some tech stocks in Asia fell after shares
of California-based Intel plummeted 13% in after-hours U.S. trading on its soft
guidance for the current quarter, despite posting fourth-quarter earnings beat
Thursday. SoftBank Group was down over 4%, while Lasertec fell nearly
6%. Tokyo Electron declined
over 1%. South Korea’s SK Hynix dipped 1%.
Hong Kong Hang Seng Index added 0.27%,
while the CSI 300 slid 0.29%.
Australia’s S&P/ASX 200 climbed
0.16%.
Overnight in the U.S., the main benchmarks
extended their gains from the previous session after Greenland tensions ease.
The Dow Jones Industrial Average advanced
306.78 points, or 0.63%, and closed at 49,384.01. The 30-stock index recovered
from the losses seen
earlier this week following President Donald Trump’s new
Europe tariffs announcement.
The S&P 500 climbed 0.55% and
ended at 6,913.35. The Nasdaq
Composite advanced 0.91% and settled at 23,436.02, supported by gains
in Nvidia, Microsoft and Meta Platforms
Asia-Pacific
markets: Nikkei 225, Kospi, Hang Seng Index
US Says Consumer Spending Up, Unemployment Steady
January 22, 2026 at 10:54 PM GMT
New jobs data from the Trump
administration showed unemployment benefit claims remaining steady, coming in
at 200,000. Those numbers were significantly below the median forecast in a Bloomberg
survey of economists, which called for 209,000.
According to two other government reports,
the US economy expanded in the third quarter by slightly more than initially reported and personal
spending rose at a solid pace in November. The latest data should
reassure the Federal Reserve that the economy remains on a solid footing
despite a cooler labor market, said James McCann at Edward Jones.
“There looks to be little urgency to cut
rates at next week’s meeting, and the central bank could stay on hold for
longer should growth remain robust into 2026 and inflation continue to run at
above target rates,” he said. Here’s your markets wrap.
US Says Consumer Spending Up, Unemployment Steady: Evening Briefing Americas - Bloomberg
Fed’s main gauge shows inflation at 2.8% in
November, edging further away from target
Published Thu, Jan 22 2026 10:20 AM EST
Inflation drifted slightly further from
the Federal Reserve’s target in November though in line with expectations,
according to the central bank’s preferred gauge released Thursday.
The personal consumption expenditures
price index, a Commerce Department measure the central bank uses as its main
forecasting tool, showed inflation at 2.8% for the month both for headline and
core, in line with the Dow Jones consensus.
In addition, the department’s Bureau of
Economic Analysis reported that the rate for October was 2.7% on both a
headline and core basis, the latter excluding volatile food and energy prices.
The monthly figures showed a 0.2% increase
for both months. The BEA released the October and November numbers together due
to impacts from the government shutdown during which official agencies
suspended data collection and reports.
In addition to the inflation figures, the
report showed personal income up 0.1% in October and 0.3% in November, the
latter 0.1 percentage point below the forecast. Also, personal consumption
expenditures, a proxy for consumer spending, rose 0.5% in both months, matching
the November forecast.
The personal savings rate rose in November
to 3.5%, down 0.2 percentage point from the prior month.
Price figures for November reflected 0.2%
increases in both goods and services. Food was flat while energy-related costs
rose 1.9% and after falling 0.7% in October.
The report comes the same day that the BEA
said gross domestic product rose 4.4% in the third quarter, according to the
second and final estimate. In addition, the Labor Department reported that
jobless claims are trending around their lowest level in two years.
Together, the data indicates an economy
continuing to expand, with consumer spending ahead of inflation despite a
somewhat softening labor market.
“The consumer continues to drive the U.S
economy, with today’s data pointing to another strong gain in spending. This
resilience comes in spite of last year’s slowdown in the labor market, and
still elevated inflation, both of which have weighed on real incomes,” said
James McCann, senior economist for investment strategy at Edward Jones.
“Today’s data should reassure the Fed that the
economy remains on a solid footing, despite a cooler labor
market.”
Markets expect the Federal Reserve to stay
on hold at its policy meeting next week following three consecutive interest
rate cuts in 2025. Futures traders see at most two rate reductions this year as
policymakers weigh the impact of last year’s easing, coupled with continued
inflation pressures and an uncertain geopolitical landscape.
Trump’s Greenland deal revealed
Thursday, 22 January 2026
The United States will control parts of
Greenland by designating them as sovereign base areas under a proposed deal
reached in Davos.
The Telegraph understands that the draft framework would mirror Britain’s
arrangement with Cyprus, with American bases being treated as US territory in
the Arctic region.
The deal, agreed last night between Donald Trump and Mark Rutte, the Nato
secretary-general, would allow the US to conduct military operations,
intelligence and training, as well as pursue some local development, including
potential rare earth mining, without seeking Denmark’s consent. Read more on
the terms of the
agreement here.
Back in Washington, Republicans carved
up a cake shaped like Greenland as they celebrated the US
president’s deal on the future of the island.
Trump dropped his threat of 10 per cent
trade tariffs on the UK and other European countries after announcing the
“long-term deal”. He offered few details about the framework, other than to
describe the duration as “forever”.
Allister Heath, Sunday Telegraph Editor, writes below that the US president is
playing a zero-sum game and shattering the old world order.
Allister Heath
Sunday Telegraph Editor
Defcon 3, here we come. The world is a
powder keg, and Donald Trump is flamethrower-waving like a famished pyromaniac.
He desperately desires Greenland, and will incinerate any relationship, however
special, that stands in the way of his imperial delirium.
His speech at Davos was incendiary, a torching of the West by the supposed
leader of the free world. The blackmailer-in-chief now claims he won’t use
force to seize Greenland, but if America’s “immediate negotiations” are
underpinned by the kind of techniques that would have made a New York mobster
proud, what difference will it make?
His threat to tariff Britain, his
grotesque bullying, have obliterated any residual goodwill towards Trump among
the Right-leaning British public, even when they agree with him on Chagos, net
zero or his scathing assessment of Europe. No Western conservative leader, from
Jordan Bardella to Giorgia Meloni to Nigel Farage or Kemi Badenoch can afford
not to condemn him.
There is a real danger that Trump’s imperialistic overreach could trigger a
catastrophic chain reaction. A concerted boycott of US treasury bonds, as some
are demanding, would destroy not just America but the European and world
economy.
Continue reading ➤
Trump’s Greenland
deal revealed
In other news.
Exclusive: Valero, Phillips 66 buy Venezuelan
oil cargoes as part of Washington's deal with Caracas
January 22, 2026 3:45 AM GMT
HOUSTON, Jan 21 (Reuters) - Valero (VLO.N), opens new
tab has
bought a cargo of Venezuelan crude oil, two sources said on Wednesday, one of
the first deals by U.S. Gulf Coast refiners that are part of Washington's
agreement with Caracas to export up to 50 million barrels.
Phillips 66 (PSX.N), opens new
tab has
also purchased a cargo, one of the sources said.
Both bought the crude from trading house
Vitol, the sources said, adding that it was traded for delivery to the U.S.
Gulf Coast at a discount of about $8.50 to $9.50 a barrel to Brent crude .
Vitol and rival trading house Trafigura
were the first firms to be awarded licenses by the U.S. government to trade
Venezuelan crude after President Nicolas Maduro's ouster in early January.
While Valero and Phillips 66 have been
buyers of Venezuelan crude through the Venezuelan state oil company's partner,
Chevron (CVX.N),
opens new tab,
the deals mark the first purchases for the U.S. from the trading houses that
were only authorized this month to market crude from Venezuela.
The sources declined to be identified as
trade deal information is confidential. Valero, Vitol and Phillips 66 did not
immediately reply to requests for comment. The White House also did not
immediately respond to a request for comment.
Vitol and Trafigura bought the Venezuelan
oil at a $15 a barrel discount to the global Brent benchmark, according to the
sources. U.S. Energy Secretary Chris Wright also said on Friday that initial
sales of Venezuelan heavy crude worth some $500 million had been negotiated at
$15 a barrel discount to Brent.
The trading houses will incur the cost to
ship the crude to the U.S. Gulf Coast, which ranges between $2.5 and $3.5 a
barrel depending on the size of the tanker, shipping sources said. That would
give them a margin of between $2 and $4 per barrel for the Venezuelan oil they
resell.
Offers of Venezuelan flagship Merey heavy
crude to U.S. refiners began last week at a discount of between $6 and $7.50
per barrel to Brent, but moved lower due to little interest. Vitol and
Trafigura also made to Indian refiners at $8-8.50 per barrel below Brent, but
that has also elicited little interest.
Before sanctions were imposed in 2019,
several large U.S. Gulf Coast refineries bought and processed up to 800,000
barrels per day of Venezuela's heavy oil, according to U.S. government data.
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.
European lawmakers suspend U.S. trade deal amid Greenland tariff
tensions
Published Wed, Jan 21 2026 10:22 AM EST Updated
Wed, Jan 21 2026 1:37 PM EST
European lawmakers on Wednesday suspended the
approval of the trade deal that the European Union and U.S. agreed in July.
In a statement Wednesday, European Parliament
member Bernd Lange, and INTA chair on EU-US trade relations, said the recent
plans by President Donald
Trump to impose tariffs of between 10% and 25% on
European nations go against the terms of the trade pact.
Referring to Trump’s address at the World Economic
Forum in Davos, Switzerland, on Wednesday, Lange said: “I guess he didn’t
revise his position. He wants to have Greenland as part of the United States as
quick as possible.”
In his speech, the president called for “immediate
negotiations” on the acquisition of the Arctic territory.
Trump ruled out the use of military force in his
speech, a commitment Lange described as a “small positive element.”
However, Lange said the proposed 10% to 25% tariffs
remain on the table, adding that, until the threat of them is over, “there will
be no possibility of compromise.”
“We will hold on the procedure ... until there is
clarity regarding Greenland and the threats,” he said.
“There was a breaking of the Scotland deal by
President Trump,” Lange said, referring to the trade pact agreed by the EU and
the U.S. at Trump’s Turnberry golf resort last year.
Lange said Trump is “using tariffs as an instrument
of political pressure” as a way to buy Greenland, and described the move as “an
attack against the economic and territorial sovereignty of the European Union.”
He added that the European Parliament’s Committee
on International Trade, or INTA, would on Monday discuss the use of the EU’s
Anti-Coercion Instrument, or ACI — a far-reaching measure variously described
as a “trade
bazooka” — which would allow the EU to substantially
restrict U.S. companies’ access to its single market, block them from tenders,
reduce the flow of goods and capital, and curb foreign direct investment in the
bloc.
“This was created exactly for such a case when a
foreign country [uses] tariffs and investment for political and coercive
pressure,” Lange said of the ACI.
U.S. Trade Representative Jamieson Greer told CNBC
that the EU had “failed to implement its commitments under the deal despite
rapid US moves to reduce its tariffs on the EU last year.
“This move by the European Parliament introduces
further delay. The United States and EU have - and will always have - a number
of foreign policy and economic matters that fall outside the four corners of
the deal. If the United States can compartmentalize important yet unrelated
matters, the EU should not use them as excuses for noncompliance,” he added.
Earlier in the day, Bundesbank President Joachim
Nagel told CNBC that he hoped Trump would reverse his stance, calling the
trans-Atlantic tensions a “very problematic situation.”
Nagel, a governing council member of the European
Central Bank, acknowledged that the tariff threat will likely have “some
spillover” to monetary policy in the region.
Speaking to CNBC’s Karen Tso at the World Economic
Forum on Wednesday, Nagel said the tariff dispute could “maybe” be a game
changer for monetary policy in the euro zone, which he said was still on “a
good path.”
“I still have the hope that we can find a solution,
a joint understanding,” Nagel added.
European
lawmakers suspend U.S. trade deal amid Greenland tariffs
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.
This tiny
power module could change how the world uses energy
Date: January 19, 2026
Source: National Laboratory of the Rockies
Summary: As global energy demand surges—driven by AI-hungry
data centers, advanced manufacturing, and electrified
transportation—researchers at the National Renewable Energy Laboratory have
unveiled a breakthrough that could help squeeze far more power from existing
electricity supplies. Their new silicon-carbide-based power module, called
ULIS, packs dramatically more power into a smaller, lighter, and cheaper design
while wasting far less energy in the process.
Global demand for electricity is rising
fast. Energy-hungry data centers that support artificial intelligence, along
with expanding manufacturing, are putting unprecedented pressure on power
systems worldwide. Meeting that demand will require more than simply generating
additional electricity.
One promising solution is to use
existing energy supplies far more efficiently and at lower cost.
A New Approach to Power Efficiency
Researchers at the National Renewable
Energy Laboratory (NREL) have developed a new silicon carbide based power
module designed to dramatically improve how electricity is converted and
delivered. A power module is the housing that contains power electronics, which
regulate the flow of electricity between systems. This new design delivers
record-breaking efficiency, higher power density, and a manufacturing process
that keeps costs low.
The technology is known as NREL's
Ultra-Low Inductance Smart power module, or ULIS. By using silicon carbide
semiconductors, ULIS can achieve five times the energy density of earlier
designs while taking up less space. That combination allows manufacturers to
build equipment that is smaller, lighter, and more energy efficient. The
1200-volt, 400-amp module is well suited for data centers, electrical grids,
microreactors, and heavy-duty platforms such as next-generation aircraft and
military vehicles.
Why Ultra-Low Inductance Matters
A key advantage of ULIS is its
exceptionally low parasitic inductance, which refers to resistance that slows
changes in electrical current and limits efficient power conversion. ULIS
reduces this resistance by seven to nine times compared with today's most
advanced silicon carbide power modules.
Because the system can switch electrical
current extremely quickly and efficiently, it converts more of the available
electricity into usable power. That capability allows ULIS to extract
significantly more value from the same energy supply, making it a strong
candidate for addressing growing global energy needs.
"We consider ULIS to be a true
breakthrough," said Faisal Khan, NREL's chief power electronics researcher
and the principal investigator for the project. "It's a future-proofed,
ultrafast power module that will make the next generation of power converters
more affordable, efficient, and compact."
More
This tiny power module could change how the world uses energy |
ScienceDaily
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt Clocks
(usdebtclock.org)
Another
weekend and with the Davos gathering over and no eligible dictators to kidnap
and overthrow, what new global mischief will tariff team Trump come up with for
next week? Have a great weekend everyone.
A system of capitalism presumes sound money, not fiat money
manipulated by a central bank. Capitalism cherishes voluntary contracts and
interest rates that are determined by savings, not credit creation by a central
bank.
Ron Paul
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