Jim’s Mailbox

Posted at 11:01 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

China, on the other hand, is already Brazil’s largest trading partner, with commerce reaching $100 billion annually.

Dave

Brazil Deepens China Ties in About-Face
November 14, 2019

BRASÍLIA—As a fiery conservative candidate last year, President Jair Bolsonaro warned that China was a rapacious predator out to exploit Brazil and he pledged loyalty to a leader he called his American idol, Donald Trump.

Less than a year into his presidency and unable to revive a flat economy, an ebullient Mr. Bolsonaro hosted China’s President Xi Jinping in this capital for a two-day summit of the world’s leading emerging nations that ended Thursday.

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Jim/Bill,

Both parties have fed the military industrial complex. Think of the infrastructure this could have built in the USA!?

Dave

The Costs of Post 9/11 Wars: $6.4 Trillion
November 14, 2019

Since late 2001, the United States has appropriated and is obligated to spend an estimated $6.4 Trillion through Fiscal Year 2020 in budgetary costs related to and caused by the post-9/11 wars—an estimated $5.4 Trillion in appropriations in current dollars and an additional minimum of $1 Trillion for US obligations to care for the veterans of these wars through the next several decades.[2]

The mission of the post-9/11 wars, as originally defined, was to defend the United States against future terrorist threats from al Qaeda and affiliated organizations. Since 2001, the wars have expanded from the fighting in Afghanistan, to wars and smaller operations elsewhere, in more than 80 countries — becoming a truly “global war on terror.” Further, the Department of Homeland Security was created in part to coordinate the defense of the homeland against terrorist attacks.

These wars, and the domestic counterterror mobilization, have entailed significant expenses, paid for by deficit spending. Thus, even if the United States withdraws completely from the major war zones by the end of FY2020 and halts its other Global War on Terror operations, in the Philippines and Africa for example, the total budgetary burden of the post- 9/11 wars will continue to rise as the US pays the on -going costs of veterans’ care and for interest on borrowing to pay for the wars. Moreover, the increases in the Pentagon base budget associated with the wars are likely to remain, inflating the military budget over the long run.

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Jim/Bill,

Where is Kudlow with its pompous nonsense?

CIGA GG

Recession Warning: Freight Volumes Negative YoY For 11th Straight Month
November 15, 2019

Authored by Mike Shedlock via MishTalk,

The Cass Freight Index once again warns again of economic contraction.

Donald Broughton, founder of Broughton Capital and author the Cass Freight Index says the index signals contraction, possibly by the end of the year.

That’s just one one month away.

Six Key Points

With the –5.9% decline in October, following the string of declines in May through September (ranging from -3.0% to -6.0%), we repeat our message from the previous five months: the shipments index has gone from “warning of a potential slowdown” to “signaling an economic contraction.”

We acknowledge that: all of these negative percentages were against tough comparisons (some extremely tough), and the Cass Shipments Index has gone negative before without being followed by a negative GDP. However, demand is weaker across almost all modes of transportation, both domestically and internationally.

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