This is the end...
Jim Morrison of the Doors used the words in a hit song. You may have seen a ding-dong holding the words on a street corner sign, but sadly, it is really here.
Scientist have discovered that rainwater now contains plastic residue. This means plastic will be in our crops, drinking water and consumed by our livestock in grass and feed. It will run within our veins until it causes a blockage and we DIE!
This could produce a cancerous plague like the Black Plague that hit Europe in the Middle Ages. I have a partial answer to save fresh water, but mankind will need a communal research team to find a way to sanitize rainwater to make it safe again.
This sad report makes everything else pall in comparison. Is it not said, "Waste not, want not?" Protect His earth!
American Ways Are Also Dying
It seems like bad news follows more bad news. A consumer report says that one-fourth of all US malls are already gone along with 500 department stores that shuttered their doors for good. Remember those old fake ads in your local newspaper saying, "Going out of business! Everything 75% off!" Well, now they are for real. The outlook is worse. Amazon controls 50% of all online shopping. Keep in mind that the US consumer accounts for 70% of the economy. The US consumer is changing its preference. For the retail survivors they will need to expand their e-commerce and yet, somehow keep the live store experience one that consumers will cherish.
Sebastian asks, "Where will all those lost jobs find new employment?" Speaking of employment, the latest revision by the Bureau of Labor Statistics says that, are you ready for this, 501,000 reported jobs were miscalculated. The bureau was off by 501,000. Nothing like appointing your own people to make you look good with false reports.
New Home sales...
plunged in July by 12.8%. This leads to a yearly projection of 635K units. That figure is pathetic! To put that number in perspective, consider that during the 80s and 90s in Orlando, Florida, which is a small city, that metropolitan sold more than the projected total for this year. Sadly, I'm not surprised. The price of a new medium home is $312,800. Dear Reader, to qualify for a mortgage with that price, your household must make at least $6,000 per week. I can't make that much in a month! But, hey! Look at the bright side! That sale price is actually down 4.5% from a year ago and interest rates are lower.
By the way, July sales of existing homes rose by 2.5%. This was the first up-tick in a year and a half. In addition, people were refinancing which is one good effect from low interest rates. Maybe, they will use it to take a trip? Here is a suggestion:
First Spaceport
You read it right. Virgin Galactic is opening the first spaceport. You can relax in this New Mexico facility. Sit in the lounge and watch the big bird fly your fellow tourists into a low orbit space flight as you wait for your turn. You won't see anyone from our blog there, but good luck.
Inverted Yield
The global community keeps pushing negative yield bonds. If you took out one of these notes and you planned to take up the previous piece about a space flight, well, when you return from orbit, you will have less money than before you took off. Think how crazy this "Junk" really is: You can purchase a 2-year bond and receive more interest than a 10-year note. No wonder recessions follow inverted yields. This is whacky math! The end is near...
Some Positive News...
Gold exploded last Friday to close above $1526 which is three dollars more than JFL said for gold to move to a new Fibonacci sequence. The next level is $1576. I would think that gold will take a pause when it reaches that projection. It could regress a little, but more likely just consolidate. After this period look for gold to rise to $1708. Yay! Go! Make some money and buy American!
God is great!
And He works in small ways. Consider a recent Ural Airlines flight. The Russian jet ran into a flock of birds which killed the engines. The pilot remained calm as he located a cornfield. He landed in it. Everyone survived. Praise the Lord!
