The three most important things for every individual is energy, food and a place to stay. Under a bridge, on a park bench or under the skies is not shelter. When your dollar has purchasing power, it buys more. In the past, even with low wages, low income laborers made ends meet because of the strength of the dollar. Speaking of the dollar, the US has been given a great gift by being named the currency reserve of the world. This position also includes responsibility. The US Federal Reserve has failed both the global community and American citizens. By continually running deficits, the US has gone from being the greatest lender to the greatest debtor. This is the background for one of three basic needs - shelter.
This humongous failure by our central bank, the Federal Reserve is being seen on American streets - everywhere. We got homelessness, poverty and a new issue of worry, food insecurity. The irony of it is America is still the greatest agricultural nation ever and to have its people, its children going to bed hungry defies explanation. We, at Evolution can sum it up with two words - Federal Reserve.
Latest Fed meeting...
The chair, Powell stated that the central bank will leave rates near zero until 2022. Here, at Evolution and as you know, we called it. However, the chair stooped to a new low. In giving guidance for the economy, Powell gave some truth to misdirect this big lie. He said it will take some time for the economy to recover. It will get moving by the fourth quarter. Many will remain jobless even amid the recovery. Then, he reminded his audience that unemployment, now at 13% will shrink by the fourth quarter to 9%.
This is a LIE!
Back in the day when I attended school, we used "old" math. We know from reports by the Bureau of Labor that there are presently, 44 million claims for unemployment. Within that stat it is also the fact that some of these claims by citizens are in situations where they have returned to work. They are seeking benefits for the time that they were locked out. However, the bureau also admits that there are still many Americans who were not able to file a claim due to overload response within their state. This balances out the equation. Bear with me. I will use the 42 million (previous week total) and the highest employment on record which was in 2019 at 134 million workers at full-time. My old math says 42 out of 134 turns out to be 30%. If, you add part-time help, the figure swells to 160 million. If you like that number it is 26%. Either way, the Fed and the government LIE!
30% is the true percentage of the unemployed! This is as bad as the Great Depression!
New Conspiracy...
Why is the Labor Bureau so out of touch? Because cutbacks, especially by Republicans to the agency and in Red States in their labor departments, is why there is no response for citizens filing claims. It is so bad that the Labor Bureau does not gather info from every state on unemployment. They do a phone poll of 60,000 for a nation of 320 million. Get real! Hire some people!
World Federal Reserve
The G-20 central banks have given emerging markets forbearance with their loans for the rest of 2020. By the way, G-20 considers China and India as emerging markets. This is pure BS! China is the world leader in manufacturing and exports. Whose kidding who? They have already surpassed the US as the number one economy in the world and they are a member of the G-20. Get real!
TJs feeling is becoming a prophecy.
- "If the American people ever allow private banks (read Federal Reserve) to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..."
- Thomas Jefferson
Evictions Are Coming...
Federal moratorium on evictions due to the lockdown end 25 July. Some of those evictions begin at the end of June and in a few states, the process has already started. You may not realize that there is an eviction every 7 minutes. The monthly figure of 300,000 is a stat gathered prior to the virus. There are more evictions than foreclosures even during the financial crisis of 2008.
You don't want to live in...
Charleston, South Carolina. They evict more renters every month than totals of many states. Los Angeles has 40% of Blacks living on the street. This sad stat gets a worse feel when Afro-Americans only consist of 6.5% of California's population. This homelessness in our nation was taking a turn for the better prior to the pandemic. It shrank from 650K to 500K. Joel Robert, chief economist at PATH, a L.A. advocacy for homelessness, says, he sees a new surge of at least another 250K. Many coalitions are calling for rental assistance and affordable housing in any new stimulus by the government.
The latest danger is over 4.6 million homeowners skipped their April payment. Oxford Economics believes that 15% of all homeowners will end up delinquent. In addition, there are about 43 million rental units in the US. Almost half is owned by small business which equates to one person or family. These are mostly people who save and attempt social mobility. They may fall back to the starting gate of economic progress. If renters can't pay them, they cannot pay their mortgage, pay state taxes or do maintenance. This is economic contagion for them just like the virus. The only good news is according to the National Multifamily Housing Council that reports that 93% of renters have their payments up-to-date.
Did you know that when banks first offered home mortgages that they were for a term of just five years? Usually they came with a balloon bill at the end of the term. There were no rollovers. Today, car loans stretch out for seven years and you can get a new rollover agreement. The loan amount exceeds the loan amount of the first, five year loans on homes. Todays vehicles cost more than homes in the 60s. This is loss of purchasing power. This is why I say, End the Fed!
