Another Fed Deception

The Federal Reserve had their meeting last week. After, the chairman, Powell talked. As always, the Fed uses their bully pulpit to control the market and influence society. They have so many tools at their disposal along with the ability to seek more tools and more control.

The Fed as well as our government leaders have swayed the public's view of our economic climate. Our present economic climate is gauged by the stock market. This translates to this: if the market is up, so is our economy and versa. The recent rally is skewed by one aspect: the elite eight stocks can push the index higher. This distorts the real picture of the economy. In our view, the economy is good when the three basics to life - food, energy and shelter - are affordable. When there is social mobility and affordable health care, especially for families. We have none of the above. 

Dream World

Our nation has blinders like a horse who cannot face the wall of noise. Our leaders constantly claim that we are the number one economy in the world. We, at Evolution, believe that China is the number one economy. They have the largest manufacturers; the largest exports and they lead in many other categories. What news do we talk about? We talk about Trump and how he carelessly used classified documents. Then, we have a Congress report against Congressman Adam Schiff who abused his findings into Trump concerning the Capital 6 mob disturbance. In a tit-for-tat, Congressman Simpson (Id.) says, "Revenge politics comes when the other party becomes the majority." While this takes place, hackers broke into government agencies and "took" all documents, including classified. People are robbed every day on the internet. How can we be number one if we cannot protect our citizens? This is a primary purpose of government. This is why we advocate for a new third political party, The Liberty Party. Then, we have the Federal Reserve.

4% to 2%

We all have heard that the Fed desires a 2% inflation target. Even if they manage to reduce the present 4% down to 2%, what does that really mean? Dear Reader, this is just another deception. All it means is that prices from a year prior have stopped rising at a pace over 2%. If the price of a dozen eggs was $1.69 before inflation and now, they cost $3.49 to which is only 2% higher than the previous year, the Fed did its job. We say, "BS!" Eggs used to cost $1.69 and now we pay $3.49. The damage caused by inflation remains with us. The only way that we can return to our previous standard of living is to have wages climb equal to the new ingrained inflation. It never does. This is the real state of the economy. We run deficits every month because we do not protect American made products and this lack of protection has destroyed every category of production. It has eroded our standard of living. We see it every day in our cities with people sleeping on the street. The Federal Reserve covers our reckless leaders by buying up the debt to keep the lies going, to maintain the status quo. They are the cause of our deterioration. We say, "End the Fed!"

Another Aspect

We claim an open market, however foreign entries into it have an unfair advantage. Any big corporation in almost every country receives government assistance in one form or another. This aspect has not gone unnoticed. Our agricultural and energy sectors do receive subsidies. We say, go back to a real open market. End all subsidies, but make all imports pay with tariffs that are high enough to offset the differences in their economic levels to ours. This would also have to include currency manipulation. There are other points, but the first big steps need to be taken. 

Back to the Fed

Since no one challenges the Fed in its meetings, we never hear about this one important point, the M2 money supply. The Fed discontinued providing info on the issue. This is another one of their deceptions. Well, it has been contracting. This means fewer loans and a slower outlook. Maybe this is the reason that within the recent market rally, three tech giants all had a down day last Friday? Who, you ask? Two are chip makers, Nvidia (NVDA) and Advanced Micro (AMD). The other is Microsoft (MSFT).  Peace.