Other Worries

 News ------ News ---------- News --------------- News --------------------- News*

Dear Reader, as you know from our pieces, at times we refer to our unpublished book that we feel will help America, and possibly the world. You see that we do not clutter our page with ads. Money is a means and not a goal. We seek to make life better. With that said, our founder, John Lipareli has his first book published - to make a name for himself that could help get his political and economic work a reality. You can buy at Amazon Books. It is called, "The Legend of the Afghan Hound." It is general and family reading. Kids 9 to 15 will love the action adventure as well as pet lovers and history buffs. The sweeping saga begins in ancient Egypt in a time of anxiety and war and ends in Bethlehem with hope and love. Adults will be attracted by the theme of "love in action." By that I mean the sacrifices that we make for each other. It is a Christmas classic and makes an excellent gift. Please, support his work. Thank you. 

Present Market

Bank earnings this week to begin the quarterly reports. We expect no "cockroaches." They will probably push the indexes to new record highs. The Santa Rally was neutralized, but the first five trading days was bullish for the January Barometer. With that said, we see other worries because there are other "bugs" beside roaches. 

James Grant...

...a trusted, long-time analyst with a news letter (Grant's Interest Rate Observor) sees a crisis brewing. It is not in banking, but a connected sector, Life Insurance. He says that since we have been in a yield chasing market, insurers have entered into the Private Credit and Private Equity sectors to the tune of $1.7 trillion. This includes "junk" rated issues. He points out that the Repo Rates which have spiked due to recent events to which the $700 million dollar man, Jamie Dimon calls cockroaches. Many of these investments lack true price and evaluation discovery. He relates our current positive economy to the aspect that we grow our financial deficits at 7% on a yearly basis. We go into debt at 7% to gain a 2% growth rate? Idiots! He adds that Fed rate cuts only make the big picture more difficult. He sees the parabolic spending in AI could end up like a Tower of Babel (He used the Pyramids of Egypt). Finally, he says insurers are capitalized for future returns and do not take into account future adversity. Their investments are not risk free and one problem (bug) could cause contagion. This is similar to banks buying each other's issues. They are good until they are not.

Big Money is...

...seeing a risk with the gap between short and long term interest rates. This gets extra juice because of the constant inverted yields. In addition, regional data says that 32 states are in or approaching a recession. Remember we informed you of the report by Mark Zandi, the chief economists at Moody's Analytrics that 22 states are already in a recession, a few months back. The numbers are getting worse. These points maybe the shortage in words, but it is the most dangerous in consequences.

Then, There is Social Security

It has not been addressed for 43 years. At that time, social security was last changed and for the worst. The Republicans lowered the tax on income for social security. This gave the fund less revenue. It was "termed" a benefit for workers. What it did was give lower income workers more take home pay, but those same workers as well as the rest of us, now need a secure retirement from the social security agency. To put that into perspective, this is 69 million and an additional 7 plus million getting SSI. The fund could become insolvent by 2033?

The fund is hurting for revenue. It takes 60 votes in the Senate to make a change. The problem, as we at Evolution see, is this. The Democrats will ask for "concessions" for their vote. They want the subsidies for the ACA. We stated years ago that President Obama let his ego sign that poor bill. We were for First Payer or nothing. Did you know that the bill forces you to get medical insurance? If you don't, you are in violation of the law. No one says what the penalty will be. The ego Democrats keep this a secret and that is why they push for the subsidies. 

Bottom Line: These worries point to the lack of real leadership by our two governing political paties. Both of our two political parties are corrupt. They answer only to lobbyists and connected people. We are for a new political party. We call it the "Liberty Party." It only has this on its platform: Protect the American worker and family. Cut military spending, especially foreign bases which are in over 100 locations. Use that money to make our nation better with our neigborhoods, schools and infrastructure. Return our economy so it has social mobility with our workers getting a liveable wage. Peace.