We begin where we left off. The Federal Reserve and the government reported that inflation came in at 1.5% for February and below its 2% target. Can you now see that they lack any creditability?
Want a second opinion?
The news of Archegos Capital Management blowing up was rumored in the Asian market. It is why the Chinese index has been falling. Archegos had many over-leveraged Chinese stocks. The private hedge fund gave the market time to get ready for Monday's margin calls. You want to see destruction? Check out Viacom or Baidu.
Those stocks will not be the only causalities. The hedge fund also had the Derivatives of Financial Mass Destruction. The repercussions will be slow to unravel, but they will. The sin here is how much of taxpayers money will be used to correct the greed of banks over-leveraging. This is why banks want the Federal Reserve. These bastards want the profits (privatize) and socialize (taxpayer) the losses. The question is how much money will the Fed provide the firm and market? This is the truth of the role of the Fed. This is why we say, "End the Fed!" Big banks like Nomura (loss of $2B) and Credit Suisse are already giving out earnings warnings. We see the Arcgegos causing damage somewhere between Long Term Capital Management and Lehman.
The last unemployment number for March was 684K. The "market" said that it was less than forecast. This sent the indexes to new highs. This is what we see. The total claims for the month was 2.9 million. The claims for the last thirteen months reaches 39 million. This points to a real unemployment level of over 26%. This market is do for a rude awakening.
One aspect that will refute the markets belief in a "V" shape recovery is this fact. Restaurant re-employment will be hard due to the debt position of the industry: 44% have over 100K in debt.
The Biden stimulus to people is much needed when you consider this takeaway from the 2020 Census. The number of citizens was 17-million who reported on the form that they depended on food banks to live.
Space Hurricane
With the seasonal hurricane period quickly approaching along with terrible weather this past winter and spring, have you ever heard of a "Space Hurricane?" Some "experts" say that this could be the first climate change appearance. Scientists observed this phenomenon over the North Pole in 2014 (they are so slow to announce news). Anyway, the disruption could hurt cell and satellite communications. We think that there will be other damage too, but the scientist cannot answer that question at this time.
Disturbing Thought
The EU "experts" say that nuclear power should be labeled under green or alternative energy. Yeah, the rods contaminate for a thousand years, but then, it is safe.
Another disturbing point
Visa is accepting bitcoins in financial transactions. They will accept an unknown entity that is controlled by unknowns and at the same time, they won't allow precious metals as legal tender.
Say It Ain't So!
It is bad enough that greedy, anti-union producers moved production offshore, but now, 3,500 US firms are petitioning the government to stop tariffs on China, especially car parts. We say, increase the tariffs to a point where these bums are forced to return production back into the US. Here is a sample list. *Costco, *Tesla, *Coca-Cola, *Pepsi, *Beyond Meat, * Starbucks, *JP Morgan Chase, * Goldman Sacks, *Walmart, *American Express, *GM, *Yum, *Impossible Foods and even Exxon.
By the way, China is the world's largest in auto sales and oil importer. They have the most people working and their dictatorship, Communist Party is still ungrateful for the US and West from taking them from peasants status to the world's leading economy. US car sales fell last year (16%) and this year looks no better. The worst in sales is Cadillac XTS. It is down 95%! Ouch!
In a related report by NBC, shipping carriers are refusing to export US agriculture products. This violates the 1984 Shipping Act. Carrier exports were down in 2019 and even worse in 2020. Meanwhile, China had a record year in 2020 despite the pandemic. It is why we say that they moved to the number one spot. The only good news to the Suez Canal blockage is no US agricultural products were on board. Back to China, their currency should be hit hard with a higher evaluation to allow a fairer playing field. Meanwhile, King Dollar is rising like the US had a record year. Go figure!
Having Trouble Sleeping?
We do. Many people do not get the required (for health) of at least 7-hours worth of sleep each night. The bean counters at Google, Amazon, Facebook and Apple want to capitalize on your sleep time. This is a nightmare that stays with you after you awake. One firm, (HAPBF) Haphee has a device that you wear to "help" you sleep. Google's entry into the field will track your dreams and "sleep talk" to compile even more about you. They are seeking to make the word privacy as evil as liberal.
Last Word
Watch the VIX. It closed on Friday below its 50-day moving average at 18.86. If it continues under 24.92, this crazy market will continue to rally. Facebook seems to be getting a lot of the new money. It has a high volume high which will be tested and the stock could rise to 534. Apple shows the same charts and Microsoft has been one of the best stocks the last two years.
Have a wonderful Easter. He showed us from the cross. We won't be called to that extreme act of love, However, to master love we must practice love. We are not a homogeneous nation, so try to remember to have patience with each other. If we can improve on that aspect, we are fulfilling the message and showing thanks for all God's blessings Peace.
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