The only good news is football begins next month. Currently, the market is experiencing a bear market rally. However, we see the shills like JP Morgan and Goldman saying things like the bottom is in and inflation has peaked. Liars and BS artists! In addition, never put any faith in either if they say the precious metals will rally. They will short you and they have deeper pockets. They are the bite dogs of the Fed. They do the dirty work against the precious metals. Isn't it ironic that their brokers always face charges of spoofing against the metals? This market manipulation is cannibalism by the insiders with clout over retail with limited resources. We see the false rally with the leading consultant.
Dr. Copper...
is rising with the tide. We always check with the doctor. We see a Fibonacci test. Some call this price movement a "dead cat bounce." Look at the downside volume. It is way stronger than the upside. To get a better picture, watch the most important commodity, oil. It resisted its low-price test to which was the second leg of the uptrend movement. Oil has very strong resistance at $85. Even in a recession, demand outstrips supply. The inflationary aspects of oil will fluxuate. It will be up one month and down the next. Remember, currency price effects what a nation pays for oil. In the US, oil has slowly dropped in price with the strong dollar. The EU just hiked their rates. Next month, oil wll be cheaper in Europe and rise again in the US. MANIPULATION! The bottom line: oil prices will remain high and this hurts everyone. Inflation is out of the bottle. It will take time to tame, but our poor will suffer greatly, especially with management in the mindset like Chipotle and Amazon.
Other Signs
Little sad things like Russia allowing grain to be exported and then, shooting artillery into the port. In addition, after years of working with the US and other nations, Russia is pulling out of the International Space Station (ISS). Of course, no matter where you live, everything cost more.
There are many negative aspects with inflation. One consequence is a slowing of demand. When this appears as it is now, companies cut back production. This translates to layoffs. It has started.
Ford: has announced that it is laying off 8,000 workers. Lyft dropped 60. Shopify cut 10%.
In a realated aspect, Chipotle closed a store in Maine because the employees threatened to form a union. Our country has a sick history of anti-labor and wonder why crime rises in times of distress?
This is easy to see and know, but there are subtle ways to see this type of action. Look at part-time labor hours. Watch full-time wage workers. Little by little, hours are cut. There are other ways like who is hiring. We find that Apple, Google and Amazon froze applications. Then, there are seasonal cuts. After Labor Day, airlines drop people. The same thing happens with the hospitality industry. Finally, check the unemployment claims. They rose dramatically last week! As for the unemployment rate, it is deceiving. A study shows that two-thirds of workers already holding one job, took a second to make ends meet. Keep in mind, words are cheap and they won't put food on your plate.
Always Happens...
at the end of a boom cycle. When rates rise, bottom lines change. Many zombie companies are kept a going concern by rolling over their debt to keep in operation. With rising rates, some stoop to fraud. Some were commiting fraud all along. We are hearing and seeing the first stories in China. Chinese citizens awoke last week to the rumbling sounds of tanks appearing before some banks. Stories leaked that these firms had serious liabilities. The banks froze all customers accounts. No one can get access to their money. At the moment, there is no liquidity in the Chinese banking system. I do not think that their banks have a program like FDIC? Authorities stated that they will try to cover deposits in smaller accounts. However, larger ones can only cross their fingers. This begs the question. Does the Chinese AI camera/control credit rating system have a bad report on the banks?
It is not just in China. In the US, Robinhood is in distress. Its meme stocks are under the gun. They were fortunate to receive a bailout, but it is not over. Robinhood wants their customers/clients to lend them your shares. They do not give a reason for or what they will do with them. They offer a income/dividend for them. We think this is a cover for trouble and fraud. Beware!
Related Aspect - Evergrande...
remember the piece we did on the Chinese real estate developer? Well, they made the news on Monday. Executives did a mass quitting just as another loan payment is coming due. Add to this the present contagion in China of homeowners refusing to pay their mortgages. We see a financial debt problem that could become contagious.
Speaking of AI
Facial recognition has been proven unreliable. Just because a computer says something that does not make it true. AI is like a lot of inventions. Companies rush it to the market for profit even though the programs are not fully researched. Microsoft put out an AI called TAY. It lasted less than 24-hours. Why, you ask? It turned into a racists, biased system through human interaction. Like all computers: What goes in, comes out. We, at Evolution are not against AI. When done correctly like in medical, the results are great for all concerned. When integrated with robotics like in car manufacturing, super results. When used for totalitarianism, the results are disasterous.
Speaking of Totalitarianism
Last month, the media did not cover this chilling, scary blurb from Chins'a Foreign Ministry that declared de facto sovereignty over the Taiwan Strait. This is the waterway separating Taiwan from China. The US says it is an open waterway. The stupid idiot continues his mindless chant by saying, "We will go to war over this point." Our navy purposely passed through it three times. Trouble is brewing. Behind the scenes, it is over chips. They are in everything and the warmongers know it. Do either of these idiots in either military ever think that they could destroy the world over a chip to gain control if a war breaks out? Somehow, someway, try to find Peace.
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