- ...You can leave here for three days in space, but when you return its the same old place, fighting and destruction all over the place...
- Barry McGuire, Eve of Destruction
G-7 Summit and Fed
Trump may have left the meeting in Canada due to the warmonger, Netanyahu, but Ursula von der Leyen opened up on China. The EU leader called out China for lies in trading. We say, "Yay!" Then, the Chinese hackers hit Canada. She should have noted that too.
We stated that the Fed would not change interest rates. We pat ourselves on the back. Fed chair, Powell did say that he sees some price increases with inflation to 3%. He adds, "We do not see more increases during the summer." Lastly, he warned about possible stagflation. Dear Reader, the US has been in stagflation since the end of 2022. We labeled it, "Stealth inflation." One reason is no one else recognizes it. We noted it in many sectors like insurance, food, utilities and apparel. We also add this point. The Consumer Price Index (CPI) does not include insurance costs. Nothing like manipulation to make things appear better.
There is also a new concern regarding housing and insurance. Have you ever heard of subsidence? It is the sinking of land. When you see cracks on the outside walls of your home, this is subsidence. With flooding and other climate problems, 1.2 billion people could be effected with damages at estimaes of $8 trillion. Ouch!
I wonder what the Communist Party in China says about its poor real estate report of only 5 million new homes in a nation of over one billion? ...Anyway, ...
We also stated that the May unemployment report at 4.2% would be the last time for that low reading. We saw in the past two weeks two high-teck layoffs. First, it was Microsoft and now, Amazon. AI and robotics are being hired. Maybe the crooks that tabulate the stats could add a new feature to the unemployment index, AI and robotic hiring?
Speaking of high-teck...
Meta is buying a defunk nuclear power plant. They plan to upgrade and use it for power in data centers for its AI program. This worries us a lot. Meta cannot even regulate its platform with protections and we are allowing them to run a nuclear reactor?
All the Talk...
is on Tesla with a test market of self-driving taxi's. Then, we read where New York will build a nuclear power plant and Japan will launch flying taxi's. We worry about the talk by Putin that all Ukraine is his. Where China has constantly surrounded Taiwan like a prize fighter sizing up his opponent. Where Netanyahu uses Trump like a pupit on a string.
Where talk ends. Where we do like "Pearl Harbor" and attack Iran without notice.
Good News
Subsea cables have been a great addition for Brazil. It gives solid fiber internet. The firm is extending to include Argentina. This connects our world.
Meanwhile,
The market is in consolidation. The bulls want to raise prices, but there is always some unsettling news like Iran/Israel conflict last week and our entry this week. We note this reliable indicator. When the market indexes cannot top the January high, it indicates a bearish trend. Conversely, if the low's are not taken out, this is bullish. By the way, we have not taken out the January high. Ironically, the oil price dropped to its first resistance level. The bulls say that this shows a pause is coming with Iran. We relate it to the calm like in the eye of a hurricane. Be patient...Peace.
