Odds and Ends: August 2023

- We become what we love and who we love shapes what we become.

- St. Calare of Assisi

Dear Reader, you should realize what has become of your purchasing power. You should further realize that the Fed is an institution to protect the banking industry and the wealthy. It is what they love. It is what they become.

You hear and read about it every day. When the UPS truck drivers get paid $49 per hour, our dollar becomes less in value. It is no wonder that the UAW has voted to strike. Think about it? They are saying if a truck driver gets that much, how much more are we worth? We build trucks! Here, at Evolution, we called this development by workers seeking more money last January. We do not take joy in being correct in our call. We worry for low-wage earners, for seniors and for small businesses. 

Meanwhile...

the market shills are calling for another bull market. They declare that the Fed will stop raising interest rates. They dare to say that the consumer is resilient. I guess that they did not read our piece last week. When consumer debt on credit cards passes $one trillion and for the first time, more consumers roll over their debt on credit cards rather than paying the full amount, this is an economic fire. When more banks (5) are downgraded by the ratings service firms (Moody), the banking contagion has not gone away. When in China, the biggest real estate firm, Evergrande files for bankruptcy (we called it) and a variety of other factors all point downward, do not be misled. When you view the charts of the big indexes, you will begin to see what we see.

Indu, Spy and Tran...

All retraced to their last breakout point. This is not the price action of a bull market. Consider these two large footwear firms, Nike and Footlocker. They are included in the Fed's consumer retail formula for inflation. Even though our population is growing, these two giants are sinking in the value of their stock. Not a good omen. 

Other Factors

We used the term. Here is the most important consumer purchase, a home. With mortgage rates over 7%, applications have fallen off the page. Home buying is the least affordable it has been in 40 years. Zillow is seeking to help with a 1% down payment loan for first-time home buyers. This is good and bad. It is nice to help, but again our lower purchasing power in the dollar has caused prices to reach unaffordable levels. Then, we read this...

Panama Canal...

has a back log of ships on both sides. The reason is the slow service. The reason for slow service is drought. These small-minded chaps who operate the canal had no vision to store water to cover a drought situation. What this means is there are fewer products on shelves and the cost to put things back on the shelf will cost more. Definitely not good. By the way, China is now the owner of the canal. Is this political? Who gets hurt more by the poor operation of the canal? We do. Enough said.

BRICS

They added six more nations to their pact. What this means to us here at Evolution is this: End the pentagon's control of our budget and cut military spending. Put more tariffs on all imports and pass a balance budget amendment. Take politics out of economics. A strong dollar helps the poorest in our nation. When you help the least, everything else will fall in place, including keeping the dollar as the reserved currency.  

Good News

Although home buying is the least affordable it has been in nearly 40 years, Zillow is seeking to help with a 1% loan payment for first-time home buyers.

The government finally did something against these punk-ass, weasels who steal from people and companies. They made a cyber arrest. I would like to see news like this at least once a month. Then, these federal workers will finally earn their paycheck. We don't need photo moments like in drug busts. We need more crack-downs and busts. Thank you. 

A small firm in Grand Rapids, Michigan called, "Battelle" can clean dirty water, especially if it contains dangerous plastic residue like PFAS. Yay!!   

- Be gracious to us, O Lord, for we are in distress.

- Psalm 31: 9

God, bring consolation and relief to Maui.   Peace.