Tuesday, March 25, 2025

The Morning Call---Devaluing the dollar will make America poor again.

 

The Morning Call

 

3/25/25

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/market-recaps/trump-tariff-roulette-sparks-surge-stocks-crypto-crude-bonds-bullion-sold

 

            For the bulls.

            https://investorplace.com/hypergrowthinvesting/2025/03/the-fed-just-gave-investors-a-big-reason-to-buy/

 

            Valuations, flows and seasonality.

            https://www.zerohedge.com/the-market-ear/valuations-flows-and-seasonality-all-say-one-thing-buy-us-fade-europe

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

February building permits declined 1.0% versus expectations of -1.2%; recall that February housing starts were up 11.2%.

 

The March flash manufacturing PMI was 49.8 versus consensus of 51.8; the flash services PMI was 54.3 versus 50.8; the flash composite PMI was 53.5 versus 51.5.

 

                        International

 

The March German business climate index came in at 86.7, in line; the March current conditions index was 85.7 versus 85.5.

 

                        Other

 

A good argument for why I am wrong on both economic growth and inflation.

https://www.advisorperspectives.com/commentaries/2025/03/24/illuminati-part-2-inflationista

 

Further evidence that my ‘muddle through’ scenario is hanging on by its fingernails.

https://bonddad.blogspot.com/2025/03/a-quick-and-dirty-update-employment-is.html

 

Monday in the economic charts.

https://dailyshotbrief.com/the-daily-shot-brief-march-21st-2025/

 

            Overnight News

 

A Trump administration proposal to impose stiff levies on Chinese-made ships entering US ports is sowing panic in the country’s agriculture industry, with farmers saying the added cost threatens to upend exports of wheat, corn, and soybeans. The US Trade Representative has recommended imposing fees of up to $1.5mm per port call on ships built in China or operated by companies with Chinese-built vessels, and hearings on the matter are scheduled for this week.

 

Ukraine unconditionally supports the idea of a full ceasefire with Russia, Kyiv’s Ambassador to the US Oksana Markarova said.

 

US President Trump signed an order imposing sanctions on countries importing Venezuelan oil and said tariffs for doing business with Venezuela will be on top of existing tariffs but added that not all tariffs will be included on April 2nd.

 

India proposed to remove the 6% tariff imposed on online advertisement services offered by companies such as Google (GOOG) and Meta (META), widely known as the Google tax from April 1st, which is a day before Trump's reciprocal tariffs take effect.

 

Subsequently, India is reportedly open to cutting tariffs on over half of US imports, worth USD 23bln, via Reuters citing sources; open to cutting tariffs to as low as 0 from a 5-30% range on 55% of US imports. Estimates a hit to USD 66bln worth of exports to the US from reciprocal tariffs. In return for tariff cuts, seeking relief from reciprocal tariffs.

 

            Monetary Policy

 

              The Fed faces a crisis.

              https://www.forbes.com/sites/steveforbes/2025/03/20/golds-3000-surge-why-the-fed-faces-an-existential-crisis/

 

The latter part of this article gets a bit too political for me; but the first three quarters are an interesting history of the evolution of the dollar based foreign exchange regime.

https://www.ft.com/content/8a71dceb-806f-4681-80f9-416aa4c366ca

 

            Fiscal Policy

 

            Devaluing the dollar will make America poor again.

            https://www.zerohedge.com/geopolitical/devaluing-us-dollar-how-make-america-poorer-again

 

            Inflation

 

              Is inflation necessary?

              https://talkmarkets.com/content/is-inflation-necessary?post=488052

 

            Recession

 

              US consumer melting down.

              https://www.zerohedge.com/economics/us-consumer-melting-down-heres-why

 

Tariffs

           

              Trump postpones ‘Liberation Day’.

              https://mishtalk.com/economics/trump-postpones-liberation-day-to-focus-on-the-dirty-15/

 

     Investing

 

            A crypto reserve misunderstands money.

            https://www.forbes.com/sites/johntamny/2025/03/23/a-crypto-reserve-misunderstands-money-shows-why-crypto-isnt-money/

 

            This timing system beats the Market by using the calendar.

            https://www.marketwatch.com/story/this-timing-system-beats-the-market-using-the-calendar-heres-what-it-says-now-9b69f419?st=LjFuU4

 

            Treasury yield curve re-inverts.

https://wolfstreet.com/2025/03/22/treasury-yield-curve-re-inverts-with-sag-in-the-middle-as-government-swats-down-10-year-yield-but-mortgage-rates-dont-follow-all-the-way-spread-widens/

 

 

            A comprehensive guide to retirement income strategies.

            https://talkmarkets.com/content/a-comprehensive-guide-to-retirement-income-strategies-for-a-secure-future?post=488143

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

                        Unusual potential discovery beneath the pyramids.

            https://www.zerohedge.com/geopolitical/researchers-claim-have-discovered-vast-city-underneath-egypts-pyramids

 

            Happiness isn’t everything.

            https://klementoninvesting.substack.com/p/good-news-happiness-isnt-everything

 

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