No Respect!

 - I was beginning to believe that no one cared about my feelings. My psychiatrist told me that I'm going crazy. I said, "If you don't mind, I'd like a second opinion." He said, "All right. You're ugly too."

- Rodney Dangerfield

Rodney is my favorite comedian. I miss him. We could all use his wit, observations and a belly laugh. This brings me to an analogy between American workers and the owners of production. From the very beginning of our nation, producers have exploited labor. This is not to say that the ruthless behavior of management is in all cases. However, the bad overwhelm the good. You can see this with outsourcing. When a firm receives cheap foreign labor that gives them an advantage to domestic producers. They will gain a greater market niche with cheaper prices. They may even be able to put the competition out of business. This is the exporting concept behind cheap Chinese EVs. Of course, they do this technique in many other fields like furniture, medical supplies, construction supplies, etc. They play off the manipulation of currency and local laws. 

No Respect for Business Creed

Every firm should put two things as commandments in their business. The first is to make the best possible product and continuing to improve that product. The second is to take care of your workers who produce the product. Sadly, American firms do not follow the two greatest aspects related to their existence. They came up with the idiot idea of planned obsolesence. Product has an expiration date (cheaply made), so you need to buy another. They seek to keep labor at sub-existing, nonwage-living wages. They broke unions with the Taft-Harley Act and they outsource at every opportunity. They will employ robot automation to keep from hiring help. This leads to two recent examples, Boeing and Dockworkers. 

Boeing

They have continually lied to their workers like the last contract negotiation. They told the union that they were planning a new jet, Dreamliner. They asked the union to accept a lower wage in lieu of keeping the new jet work in Seattle. Before the ink dried on the accepted contract, Boeing shifted the work South to a non-union state. Of course, we now know that they cut corners in safety and parts. Their new CEO should read the creed of Evolution in regards to running a company.

Union Dockworkers

They just ended their strike. Managment offered a higher wage and worked on their conscience about chain lines, consumers and the economic health of the nation. They accepted. I fear that the other aspect in their dispute, automation, was not considered. Management will screw them. It will happen during the slow period around February or when they get a good deal on new robotic equipment. This is the history of labor and management. I hope I am wrong.

Meanwhile

CVS is laying off another 3,000. Last year, they dropped 5,000. This leads to the recent jobs report. If there is one agency that is manipulated and corrupt in their work, it is BLS. Last Friday, they reported that 254,000 new jobs filled. Unemployment dropped to 4.1%. This gets a double upswing because prior to Friday, the consensus was only 145,000 jobs. This makes the Democrats look good. Then, news came out about a revised upward of the August report. It changed from a 142,000 to 159,000. Nothing like having ammunition in an election year. 

Well, there was little news about this truth in jobs reporting. The July report of 114,000 turned out to be  revised down to only 89,000. This happens twice as many times as changes for the better. The labor participation rate is 62.7%. It has not changed in the last three reports. So, if the participation rate remains the same, how can the unemployment rate drop? They also claimed wages rose .04%. How is this calculated? Is it an average? If it is, then the results are flawed. Why, you ask? Well, say if lawyers made much more and everyone else remains the same, you get an increase in the average. See? This is manipulation to make the economy look better. 

Market

It is running out of gas in the recent rally. The breadth is turning down. One strong reason is the breakout of the dollar. The last rate cut had the dollar test the 100 level. The downside channel has the top of the channel line at 102. The dollar burst through it. This will hurt the market and commodity prices.  Keep an eye on King $Dollar...Peace.