Odds and Ends: August 2021

Here we are in September and Powell says his group thinks their policies have strengthen the economy. They are considering reducing asset purchases as a way to let the economy stand on its own. So much, BS!

Dear Reader, the physical year ends with October. The Fed chairman only hints at reducing stimulus. For all practical purposes, the year is over. So, no change. He throws out the thought to show the inflation critics like us at Evolution, that the Fed have all things under control. He has been shown to be wrong on his first two prognostications on inflation. He now says the "transitory" nature of inflation will subside by the end of the year. I promise you this: Here, at Evolution, we will revisit inflation come December.

Bills of Credit

People, those assets purchases by the Federal Reserve are bills of credit. It is also causing another bubble under the radar. The Supreme Court decision in 1888 made the "Full Faith" clause. It means that laws should be not as single states but as one, unified nation. Well, the Fed policy of super low interest rates, has allowed the sellers of junk bonds to lower their offering rate. However, these new low yields do not imply quality. People are buying in search of yield. S&P rating service says a good third of these offerings will be worthless. A lot of people will be hurt by the Fed, but their crony's will deflect the cause to some other plausible BS. 

Better Option

We all have heard the rumors, right from the beginning with the introduction of the virus vaccines. They may weaken overtime. We may need a booster. Well, great and courageous doctors have a legacy and history of doing their own research with little financing and resources.

There is one doctor who inoculated his staff with a pathogen fighter that has proven to be effective with no side effects. The medicine is called, "Ivermectin." None of the staff have become ill. No one seems to attempt to follow the lead of this virus stopper! Maybe Congress has too many personal shares in the three drug companies? Give this doctor credit and give more research to using Ivermectin.

Cascade of Disasters...

is what Niall Ferguson calls our current global situation. Whether it is employment, immigration or the environment, there have been 244 global unrest protests so far in 2021. The IMF says all these actions will lower global GDP. 

On Again, Off Again...

is reference to the moratorium on evictions. The Supreme Court has overturned the Trump/Biden calls for the stopping of evictions due to the virus effects on our economy. This is sad for all sides. The stimulus package provide more than enough money to appease all parties. However, only 10% of the  money has been distributed. There will be 2-million evictions in the next two months. We also have 8-million more who could become victims. We will have higher rents and more homelessness. Why? Because the incomitance of our so-called leaders.

By the way, New York has 65,000 cases waiting to be executed for eviction. They will get more and the outlook is it will take either April or May of 2022 to enact all these filings.

NAFTA, Where are you?

The Mexican government is seeking to renege the new trade agreement in North America. They signed the deal, but now, they say they don't know what they signed?!? They want clarification on terms like what is considered manufactured and assembled? Their spokesman, Luis De la Mora is putting pressure on Biden to appease, especially with all those immigrants sleeping at the border.  

Not a good outlook...

The government reported that over 61% of taxpayers, paid no taxes. We got record deficits that are set to explode even higher will two more stimulus packages and the majority of Americans pay nothing. This type of lunacy will destroy our currency to which will end our reserve status. When or if that day appears, the US will fall to a third rate nation. Stimulus is fine, but it has to pay for itself.

Nice Idea

Meat plants are using prisoners to help with the labor shortage. I just hope that they offer jobs to these people when they are released. Tyson just raised its chicken prices by 40%. Hope, they pass some of this gravy to the new help. Hey, Powell, how does these new prices relate to your "transitory" prediction of inflation? As always, End the Fed!  Peace.