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“Today Shapes Tomorrow

Published Every Monday Since 2007   | Volume 664|
August 12, 2019
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“…you need money to buy things; you earn money by working; you may have to wait to buy things you want; and there is a difference between things you want and things that you need…”
Time Magazine, Nov 30, 2015
Article – Your kid’s financial education should start much earlier than you think – By Dan Kedlec
 Little Laughs!
How do oceans say hello? They wave at each other!
Can kangaroo jump higher than a house? Of course, a house does not jump at all!
My dog used to chase people o10n a bike…it got so bad that I had to take it away!!
Knock…Know…who is there? FedEx…FedEx who?
FedEx will be there tomorrow!
What is the worst kind of cat?
CAT-astro-phe !
What do you get when you cross snowman with vampire
What kind of Bill can you breath?
Why did Dino go to the hospital?

Because he was (Dino) “Saur”.

How do you make eleven even?

Take away the “el.”


How do you make seven even?

Take away the “s”


Why did the chicken cross the railroad track?

Because it wanted to get to the Chick train.


What is a duck on the 4th of July?

A Fire-Quacker!!


Knock, Knock…Who is there?Banana…Banana who?  Banana…Banana who?Banana…Banana who? OR-ange…Aren’t you glad I didn’t say banana?


Are you 5?

No! I am not 5!  I am 4.95 plus shipping and handling!


Knock knock…Who is there?  Panther!Panther, who?   PantH-or-no-PantH I am going Thwiming!


Laughs above are credited to kids and various sources.

Business fun facts!


Do you know the ancestry of American people? It is a melting pot of immigrants from all over the world. This trend continues even today. These immigrants make America what it is today and are an big part in the success of businesses today.

There are over 320 million Americans today. Ancestry of Americans include: Germans over 14%, African American 12%, Irish 12%, English 8%, Mexican 8%, Italian 6%, Hispanic 5%, French 4%, Polish Scottish, Dutch, Norwegian, Scotch-Irish, Native American, and Swedish are between 1-3% but add up to 11%. The rest are from other various countries.

In 2008, $3.3 Trillion was the total loss in value for the US housing market. In early 2006 housing market value was close to $9.4 almost 1/3rd of housing market value was lost due to housing, credit, and financial crisis!

Since 2008, close to 12 million jobs have been added to the job market! This has allowed many Americans to get back on track and recover from the recession. Unemployment rate is now below 5% from almost 10% in 2009 when financial markets caused the recession!

Happy Summer!
Volatile week ends with DOW closing up 28 points

In a very volatile week at one point the DOW was down over 700 points. Investors were scared of US-China trade issues getting worse which is increasing the chances of global recession.  For details read below.  The DOW closed up +28 points or +0.11%, the S&P500 was up +21 points or +0.71%, and NASDAQ was up +136 points or +1.74 for the week ending August 9th. Oil was down -$0.92 or -1.7% to $54.27 per barrel.

Tit-for-tat between US and China escalates.  For example,

  • The President Trump tweets to add 10% tariff on additional $300B of trade from China to US effective September 1, 2019

  • China reacts by deciding not to buy US agriculture products which hurts US farmers.  President Trump has been trying to protect the US farmers from the trade fight.

  • In addition, many experts saw sudden weakening of Yuan (Chinese currency) against USD. The previous week $1 was = 6.96 Yuan, and this week $1 = 7.04 Yuan.  When currency weakens the export gets cheaper to buy and help the local businesses. US saw it as a Currency Manipulation by China and called it the Currency Manipulator – a bad label to attach to a country!  For details read below.

What is Currency Manipulation?  When a country tries to benefit its local businesses against the foreign businesses by influencing the exchange rate is considered Currency Manipulation. Typically, Currency Manipulator buys or sells foreign currency with its local currency to manipulate the exchange rate.

For example, US trade tariffs on China make Chinese Goods and Services more expensive to buy in US.  So, to make Chinese businesses remain competitive, China buys more USD using Yuan which makes USD value to rise and Yuan to devalue. Think more USD demand and less Yuan supply, raises the exchange rate from $1:6.96 Yuan to $1:7.04 Yuan, thus making Chinese good cheaper to buy with strong dollar against artificially weak Yuan.

Typically, China buys US Treasury Bonds as a safe place to protect it excessive foreign reserves of ~$3T which have built up over time due net export surplus toward US.  As a normal practice, China does let Yuan float within +/-2% range of the rate, however, many experts have considered Yuan going above 7 against USD as a sign that China is now doing more than it normally does to manipulate the exchange rate.  Read green-red-blue boxes for a simplified explanation.

Can China continue to manipulate the currency? It is not that simple…

      • China hold over 5% of US total debt in the form of US Treasury bond – US total debt is over $22T and growing.  This debt is funded by many countries who are happy to lend money to US as they consider US to be a reliable economy and pay back is risk free.  China hold over $1.1T or ~5% of US total debt.  Japan is another country with similar loan amounts.  China needs to protect the value of such large loan.   To send a message to US China could ask its loan payback, which will cause the USD interest rates to rise making the loan value to be worth less.  
      • Rich people in China will take their money elsewhere – When China devalues its Yuan, the USD costs more than before so for rich Chinese take their money out of China, which reduces foreign currency reserves.  China want foreign exchange to grow its economy.
      • China has a large foreign currency reserve to protect –   Many countries consider US Treasury as safe haven to park their excess USD funds which they have due to net export to US.  Think US buys and pays in USD to these selling countries, which helps the selling countries accumulate USD as foreign reserves.  This reserve needs to be protected from any financial risk.  So, these countries invest in US treasury bonds to keep it safe.  China has over $3.1T of foreign reserves which it cannot afford to risk, so it parks these reserves by buying US treasury bonds which are considered to be safe. 
      • US has ways to out run any country in the world, including China – US is an open and competitive economy which is heavy relied upon by others.  USD is considered as a standard for global trade.  So any games by China to negatively impact US offers many ways for US to counter it. For example, if China offloads USD to send a message to US, then excess supply of USD in the market will lower the exchange rates which will make the Chinese products costs more.  In addition, US could also do Quantitative Easing, click here — What is the Quantitative Easing (Q.E)? Volume 343, to increase its USD supply causing inflation to increase which in turn will make Chinese loans to US worth less, a good thing for US and bad for China!


Year-To-Date (YTD) the DOW is up +12.7%, S&P500 is up +16.4% and NASDAQ is up +20.0%

In 2018 the DOW was down -6.7%,  S&P500 down -7.0% and NASDAQ down -4.6%.  In 2017 the DOW was up 25.1%, S&P500 up 19.4% and NASDAQ up 28.2%


Thank you for your feedback and comments! Now we are on to our 12th Year!!

Tip!: Try moving your mouse over active definitions, such as, on the right side DOW, S&P500, NASDAQ, which will open up a pop up with details so you can learn more!
Learn more about…
  What is Currency Manipulation and Tariff impact? Click here for Volume 674
What is Tariff?  What does it mean? Click here for Volume 575
How Business and Government raise cash? Stocks, Bonds?

Click here for Volume 623.

What is Tariff?  What does it mean?

Click here for Volume 575.

Emigration in America –

1% are Native Americans but 99% came from rest of the world or brought over

Click here for Volume 575.

What was your stock pick performance in 2018…since 2007? (Volume 634)
What is Full Employment?  Is it a good or bad thing? Click here for Volume 529.
During which President economy and jobs were better than others? How did Obama perform? Click here for Volume 529.

How do the Economy(GDP), Tax(Government tax & spending), and Budget Deficits turn into $17T in Debt? Simplified Explanation Volume 470.

What is the US debt ceiling, which president helped to create this debt, and to who do we owe this money? Volume 360.

What was your stock pick performance in 2016 and the last 10 years from 2007-2016? (Volume 530)
What is inflation? Volume 11.
What is Credit History? Why is it important to have a good credit history? Volume 12.


What is Economy, Business, Workers, Goods, Services, Stock, DOW, S&P500, and NASDAQ in Volume 16
Does it pay to study hard? Volume 17.

What is Currency and Foreign Currency Exchange rate? Volume 14. What is stronger or weaker currency? Volume 20. What does the dollar slide mean? Volume 32.

How does money grow in a bank? Volume 21.

What is Fed Funds rate and Discount rate? Volume 22

What does the interest rate cut mean for you? What is APR? Volume 23

How to read stock information? Volume 25.

What is the “Black Monday”…Crash of 87”? Volume 31.

Compare the Great Depression and the 2008 Recession

Source-CNN, Federal Reserve, Commerce Department, and estimates

Compare the Great Depression to the 2008 Recession? Volume 114.
What is a Recession? What is a Depression? Volume 48.
What are the Consumer Price Index (CPI) and Producer Price Index (PPI)? Volume 48

Why is consumer confidence so important? Volume 64.

What are expansions and contractions in Service and Manufacturing? Volume 389

Who are the CEO, CFO, Shareholders, and the Board of Directors? What is SOX? Volume 33

What does “$4.95 + Tax” mean? Volume 47

What is Mergers & Acquisition (M&A)? What is a Merger? Volume 49.

ADR (American Depository Receipts)

What is ADR? Volume 62.

What does buying back shares mean? Volume 63.

A fun way to start a Lemonade Stand and Learn about Business too! Volume 142.

What is Supply and Demand? Volume 177.

What is Q.E. – Quantitative Easing? Volume 343.

Who is working and who is not? Volume 354.

Do you remember September 2008 (after 5-Yrs)? What is the status of government loans (TARP)? Volume 355.

Which country is in heavy debt…see the debt as a % of GDP by country? Volume 358.

What is “Taper” or what does “Fed Tapering of Q.E.” mean? Volume 369.

Who is the new Federal Reserve Chair? Volume 585.

Who was the 1st woman Federal Reserve Chair? Volume 382.

We use multiple information resources, such as, news websites, company websites, stock exchanges, newspapers, text books, and other educational resources.

Source:, Microsoft Clipart, etc.

Weak Bull!

So far YTD…
ulls (Markets UP) = 21…
Bears (DOWN) = 9…and
raw = 2

Aug 5-9, 2019

Weekly Stock Market


Markets Up or Down?

Random Walk of stocks?

Buy Low? or Sell High?

Index (YTD%)



DOW (+12.7%)









Foreign Exchange Rate

$1 is equal to




Euro (€)

European Union



Yen (¥)


+0.92 105.66

Pound (£)

United Kingdom

-0.01 0.83

Yuan ()




Rupee (Rs.)




Your Favorite Stocks

Portfolio is  +25.5%  vs.

S&P500 +16.4%


Bought one stock in Jan-19

This week stock is?

Your gain or loss?


$138.5 +$31.2


$62.2 +$4.9


$221.2 +$45.6
$156.2 $201.0 +$44.8

Business News For Kids

Recommended Links

Entrepreneurship Lessons for Students from Norwich University Online…Recommended by a proud and budding entrepreneur GIRL SCOUT! and subscriber.

Learn what is Foreign Exchange, how it is traded, and how FXCM helps to facilitate Forex trading.
Business Study – Getting Together
Business Guide for Kids
Little Entrepreneurs: Business For Kids

Teaching Kids Entrepreneurship