Category Archives: Economy

Garbage Rates Spike As Majority Of Recyclables End Up In Landfills

China phasing out imported waste is driving California recycling rates through the floor.

Carlos Guzman, operations manager at Republic Services, next to “The Pile” in Anaheim, CA, on Friday, May 17, 2019. The Pile is what they call the mound of recyclables waiting to be sorted. (Photo by Jeff Gritchen, Orange County Register/SCNG)

(Orange County Register) The market for recyclables is tumbling, the diversion rate of trash headed to dumps is shrinking and trash bills are going up as the cost of recycling increases.

“We used to pay haulers for recyclables,” said Bob Asgian, assistant department head of Los Angeles County’s recycling and landfill operations.

“Now, they’re paying us (to take them).”

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Farm Crisis: Suicides Spike In Rural America As Trade War Deepens

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The deepening trade war between the US and China has roiled complex global supply chains and America’s Heartland. The latest breakdown in negotiations comes at a time when soybean exports to China have crashed, and huge stockpiles are building, have resulted in many farmers teetering on the verge of bankruptcy. Mounting financial stress in the Midwest has allowed a public health crisis, where suicide rates among farmers have hit record highs, according to one trade organization’s interview with the South China Morning Post.

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Auto Loan Delinquencies Spike To Q3 2009 Level, Despite Strongest Labor Market In Years

But what will happen to banks and automakers when the cycle turns?

Serious auto-loan delinquencies – 90 days or more past due – jumped to 4.69% of outstanding auto loans and leases in the first quarter of 2019, according to New York Fed data. This put the auto-loan delinquency rate at the highest level since Q4 2010 and merely 58 basis points below the peak during the Great Recession in Q4 2010 (5.27%):

https://www.zerohedge.com/s3/files/inline-images/US-auto-loan-deliquencies-2019-01-.png?itok=yFbl9TgH

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Global Trade Collapsing To Depression Levels

With the trade war between the US and China re-escalating once more, investors are again casting frightened glances at declining global trade volumes, which as Bloomberg writes today, “threaten to upend the global economy’s much-anticipated rebound and could even throw its decade-long expansion into doubt if the conflict spirals out of control.”

“Just as tentative signs appeared that a recovery is taking hold, trade tensions have re-emerged as a credible and significant threat to the business cycle,” said Morgan Stanley’s chief economist, Chetan Ahya, highlighting a “serious impact on corporate confidence” from the tariff feud.

To be sure, even before the latest trade war round, global growth and trade were already suffering, confirmed most recently by last night’s dismal China economic data, which showed industrial output, retail sales and investment all sliding in April by more than economists forecast.

https://www.zerohedge.com/s3/files/inline-images/China%20FAI_0.png?itok=hcYfkawz

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China Car Sales Tank 16.6% In April, Falling For Record 11 Months In A Row

No country has better exemplified the global automobile recession than China. Sales for the world’s largest auto market continue to deteriorate, with the latest report confirming that passenger vehicle sales in China tanked yet again – this time dropping 16.6% year-over-year to 1.54 million units, following a 12% decline in March and an 18.5% slide in February. In addition, April SUV sales fell 14.7% to 642,220 units.

https://www.zerohedge.com/s3/files/inline-images/China%20auto%20april.jpg?itok=_gmc0bJ4

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Good Thing? US Treasury Curve Flattens To Zero As Unemployment Falls To Lowest Level Since 1969

Good thing! US unemployment has fallen to its lowest level since the 1960s.

The US Treasury 10-year – 3-month yield curve has flattened to zero as unemployment hits its 50 year low.

https://confoundedinterestnet.files.wordpress.com/2019/05/yc10u3.png

Is this signaling the end of a business cycle? Or is it signaling the excesses of central banking?

We are seeing turbulence in the US yield curve given the many economic uncertainties around the globe, like Brexit, China trade, etc.

https://confoundedinterestnet.files.wordpress.com/2019/05/usyc.png

At least devaluation of the US dollar Purchasing Power has slowed.

https://confoundedinterestnet.files.wordpress.com/2019/05/fed1913.png

Source: Confounded Interest

Trump’s Worst Failure So Far?

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Funny thing, media commentary on employment almost never includes the immigration dimension—even now, when Democrats are desperate to downplay the strength of this cyclical recovery. Result: there’s absolutely no public awareness (except by VDARE.com readers) that continued immigrant displacement of American workers is emerging as one of President Trump’s worst policy failures.

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