Big Chief
The leader of the pack, Jerome Powell said that the economy is growing modestly and at the moment there is no need for further rate cuts. He returned to using " dot plot points" to provide some transparency with the Federal Reserve's future actions. The points point to a return to raising interest rates with a price target of 2.4% in 2021.
With that said, Dear Reader, I remind you of March of this year when flip-flop Powell said the target rate for 2019 is 2.4%. It would slowly rise to 2.8% by 2021. The rate is now at 1.82%. At that time President Trump put pressure on him to cut rates to compete with the world. Powell declared the Fed is free from political concerns. The president said maybe we need a new chief. Just like a magic trick, the Fed turned course and began lowering rates. It wasn't really magic, but more like the ego feared being the first Fed chair to be fired. Bottom line: do not put any belief in the Federal Reserve to have conviction in their words. The trend in rates is down with a possible test of the all-time low of 1.51%. Powell fears negative rates as our society would "wake up" to the realization that fiat currency has failed.
Meanwhile,
A panel of 51 experts chimed with their outlook. In a survey by Wolters Kluwer Blue Chip, they believe the economy will grow by 1.8% in 2020. They see recession fears fading. They have dropped from a high of 40% to the present 20% and falling. They do cite one change. It is in unemployment. They see a turn to rising from the present lows to 3.7% in 2020. They do not see any more rate cuts until after June 2020. In another report by corporate CFOs, they see the economy growing by 2.1%, however they also see an uptick in unemployment. The biggest losers will be in manufacturing. I translate that to mean more outsourcing and competition from foreign concerns. In a related report, the US mattress manufacturing companies expressed a worry that Chinese firms are targeting their industry.
Little Chief
Resided in her first meeting of the European Central Bank (ECB). Christine Lagarde took over from Mario Draghi. Previously, she ran the IMF. She said that her institution will be "highly accommodative" which is more blunt than Mario who said that he will do whatever it takes to achieve growth. She sees the EU growing even if the rate is small at 1.2%. On questions concerning inflation she predicted that it will be low at 1.1%. However, when she was pressed, she admitted that future inflation will rise to 1.5% in 2020 and higher in 2021 to 1.6%. This outlook means that Europeans will slowly decline in their standard of living just like in the US except that she is more honest with her outlook than our Federal Reserve or government. By the way within the EU, governments offer their own notes. The highest is from Greece at 1.37%. The lowest is Switzerland with a negative .62%. The leading economy, Germany also has a negative yield at .29%. I am amazed that Europeans have not been protesting negative rates which is a conviction of the failure of fiat money. One reason may lie in the euro which is common to all. The fluctuations have not sounded any alarms, although the euro has fallen from 136 to 110 in relationship to the dollar.
Dear Reader, currencies provide a clearer picture for any economy. A strong currency keeps prices low. This helps society by protecting the lowest earners on the totem pole. Currency manipulation is a bigger danger to trade than tariffs. At the moment the global community is in a race to the bottom. By this I mean that by using rate cuts from central banks, the currency of a nation falls in tandem. The euro is very low which helps their exports, but hurts their standard of living. The US has seen its dollar drop which has hurt our society. The reason is more complicated. It centers on our deficits which is dangerously too high. China and Japan use currency manipulation along with most of the nations among the emerging market group. The Chinese government ministers stated that their nation will strive to attain a 6.6% economic growth in 2020. They will provide stimulus or whatever it takes. I see their currency devaluing again to maintain market niches in exporting. The trade tensions with the US is secondary to their currency manipulations. I predict that if Trump wins in 2020, the tariffs will return and a global recession will follow.
Wednesday, December 18, 2019
Wednesday, December 11, 2019
The Following - By our Leaders
If you connect the dots from various data, the US economy is speeding on a one lane road that journey's along a cliff. The stock market is at all-time highs. It could even zoom higher if a trade deal is reached. Dear Reader, you know my views on trading with China. They are thief's and thug's. We should never trade with someone who makes so many unscrupulous demands and uses, "saving face" as some sought of holy grail to doing business with them. With that said I remind you what Stalin concluded about the West, "They will denounce us in public, but they will throw open anything to do business with our market."
He was on the money about one of our weaknesses, money.
Our CEOs only see riches as they forget the price paid for them. The Chinese have destroyed more US jobs than any other outsourcing nation. You combine the effects of lost jobs, a bleak future along with excessive money printing and debt by our government to which points a sad future that has the above economic car skidding along the road and crashing into the abyss over the edge of the road. If that picture was our only problem, we could take some precautions like a rail to protect cars from going off the cliff. The real problem is the quality of thinking. The person in charge of highway construction? The ramifications of printing money and debt? The future ability to protect the nation with the many and various high tech innovations? With that thought in mind add up the following trends.
Retail Management
Retail stores had record closings in 2019. The trend of this situation continues. Management could not see the effects of the internet and the benefits of warehouse selling. These chains announced closings. There will be more as leases expire. Keep in mind that many people work in one store and then, multiply that number by the amount of store closings.
Chico's = 250 stores.
Gap = 230 stores
Office Depot = 90 stores
Bed, Bath & Beyond = 60 stores
C. Banks = 40 stores
CVS = 22 stores (this company is just consolidating).
Lord & Taylor = 2 stores (including New York flagship from 1826).
Kmart = 2 more (one time had 2500).
Sears = 1 more (firm is 130 years old and dying).
Macy's = 1 more (opened in New York in 1851 - needs a "Miracle on 34th Street."
City Leaders
Dear Reader, it is not just corporate that lacks vision, the same weaknesses can be found in city thinking. This is not just a US problem. This happens around the world - China, Russia, everywhere, however I only address US mishaps. The following is examples of poor stewardship of taxpayer's money. The list is ball parks that are either demolished or sit vacant, rotting away. By the way, I conclude that Detroit and Miami are the worst of the worst.
Tiger Stadium, Detroit
Astrodome, Houston
Kingdome, Seattle
Silverdome, Detroit
Shea Stadium, Queens, New York
Orange Bowl, Miami
Stone Mountain Tennis Center, Georgia
Giants Stadium, New Jersey
Buffalo Memorial, Buffalo
Baltimore Memorial, Baltimore
Chicago Stadium, Chicago
Yankee Stadium, Bronx, New York (saddest one of all).
RFK, Washington, D.C.
Miami Marine Stadium, Miami
Civic Center, Pittsburgh
Rubber Bowl, Akron
This is a small sample. The ramifications lead to higher taxes. Real estate taxes are getting so high that people cannot afford to stay in their homes and which many are fully paid. This has lead to homelessness which is a sad, growing problem. The real danger with our so-called leaders is in the military. These commanders make the same mistakes as retail management and city governments except their screwups could put all of us in harm's way. I direct your attention to our navy's latest warship, The USS John F. Kennedy. I love the man, but I hate to see his name connected to future disaster on the high seas. Why, you ask?
History Class
After WWI Billy Mitchell tried in vain to get the navy to develop air power and especially, to use aircraft on ships, the aircraft carrier. He was court-marshalled for fighting the navy and the army over his ideas. He had vision. They were like our retail and city leaders of today. Battleships were the most powerful weapons in that age. Mitchell claimed planes could sink these boats. By WWII, the navy realized that he was right. Today, he is recognized as the father of the USAF.
Today
We have techno advancements in mapping and rocket power. Smart bombs can be directed to search beneath the seas like a sub with a destination. That destination could be any aircraft carrier in any waters in any location. The boat is obsolete. The navy has no vision. They should address high-tech and develop subs with these smart bombs as torpedoes to attack an enemy anywhere. In addition, the USS JFK is over budget with original estimates of $11.68 billion. There will be 4900 soldiers on this floating city of death with 75 expensive aircraft. They are fighting the next war with WWII ideas. This is the sad point of this piece. It gets worse. The next carrier after the JFK ship will be built digitally. I understand why. The use of computers will cut costs except the navy forgets that computers can be hacked. Every ship will have an unseen danger in its design. If the ship has been hacked, it is basically dead in the water. Our future navy will be useless in defense of the nation. Please, add an override to the vessel to ensure that a captain has complete control of his ship. If you think that all this is much ado about nothing, consider the latest release on the war in Afghanistan. It states that our government and our military have done nothing but lie about the involvement in the Middle-East nation. We are being led by corrupt idiots!
He was on the money about one of our weaknesses, money.
Our CEOs only see riches as they forget the price paid for them. The Chinese have destroyed more US jobs than any other outsourcing nation. You combine the effects of lost jobs, a bleak future along with excessive money printing and debt by our government to which points a sad future that has the above economic car skidding along the road and crashing into the abyss over the edge of the road. If that picture was our only problem, we could take some precautions like a rail to protect cars from going off the cliff. The real problem is the quality of thinking. The person in charge of highway construction? The ramifications of printing money and debt? The future ability to protect the nation with the many and various high tech innovations? With that thought in mind add up the following trends.
Retail Management
Retail stores had record closings in 2019. The trend of this situation continues. Management could not see the effects of the internet and the benefits of warehouse selling. These chains announced closings. There will be more as leases expire. Keep in mind that many people work in one store and then, multiply that number by the amount of store closings.
Chico's = 250 stores.
Gap = 230 stores
Office Depot = 90 stores
Bed, Bath & Beyond = 60 stores
C. Banks = 40 stores
CVS = 22 stores (this company is just consolidating).
Lord & Taylor = 2 stores (including New York flagship from 1826).
Kmart = 2 more (one time had 2500).
Sears = 1 more (firm is 130 years old and dying).
Macy's = 1 more (opened in New York in 1851 - needs a "Miracle on 34th Street."
City Leaders
Dear Reader, it is not just corporate that lacks vision, the same weaknesses can be found in city thinking. This is not just a US problem. This happens around the world - China, Russia, everywhere, however I only address US mishaps. The following is examples of poor stewardship of taxpayer's money. The list is ball parks that are either demolished or sit vacant, rotting away. By the way, I conclude that Detroit and Miami are the worst of the worst.
Tiger Stadium, Detroit
Astrodome, Houston
Kingdome, Seattle
Silverdome, Detroit
Shea Stadium, Queens, New York
Orange Bowl, Miami
Stone Mountain Tennis Center, Georgia
Giants Stadium, New Jersey
Buffalo Memorial, Buffalo
Baltimore Memorial, Baltimore
Chicago Stadium, Chicago
Yankee Stadium, Bronx, New York (saddest one of all).
RFK, Washington, D.C.
Miami Marine Stadium, Miami
Civic Center, Pittsburgh
Rubber Bowl, Akron
This is a small sample. The ramifications lead to higher taxes. Real estate taxes are getting so high that people cannot afford to stay in their homes and which many are fully paid. This has lead to homelessness which is a sad, growing problem. The real danger with our so-called leaders is in the military. These commanders make the same mistakes as retail management and city governments except their screwups could put all of us in harm's way. I direct your attention to our navy's latest warship, The USS John F. Kennedy. I love the man, but I hate to see his name connected to future disaster on the high seas. Why, you ask?
History Class
After WWI Billy Mitchell tried in vain to get the navy to develop air power and especially, to use aircraft on ships, the aircraft carrier. He was court-marshalled for fighting the navy and the army over his ideas. He had vision. They were like our retail and city leaders of today. Battleships were the most powerful weapons in that age. Mitchell claimed planes could sink these boats. By WWII, the navy realized that he was right. Today, he is recognized as the father of the USAF.
Today
We have techno advancements in mapping and rocket power. Smart bombs can be directed to search beneath the seas like a sub with a destination. That destination could be any aircraft carrier in any waters in any location. The boat is obsolete. The navy has no vision. They should address high-tech and develop subs with these smart bombs as torpedoes to attack an enemy anywhere. In addition, the USS JFK is over budget with original estimates of $11.68 billion. There will be 4900 soldiers on this floating city of death with 75 expensive aircraft. They are fighting the next war with WWII ideas. This is the sad point of this piece. It gets worse. The next carrier after the JFK ship will be built digitally. I understand why. The use of computers will cut costs except the navy forgets that computers can be hacked. Every ship will have an unseen danger in its design. If the ship has been hacked, it is basically dead in the water. Our future navy will be useless in defense of the nation. Please, add an override to the vessel to ensure that a captain has complete control of his ship. If you think that all this is much ado about nothing, consider the latest release on the war in Afghanistan. It states that our government and our military have done nothing but lie about the involvement in the Middle-East nation. We are being led by corrupt idiots!
Wednesday, December 4, 2019
Odds and Ends: November 2019
As we enter the holiday season, the big picture of our economy comes into focus. I paint as I see the picture. Sadly, it is not a classic, but more like modern art. We begin with the two most important.
Connected Problems
The biggest consumer purchase in our consumer society is a home. The second is a vehicle. There is a serious problem with both transactions - price. The cost for a new home is unaffordable for purchase unless your income falls into the upper middle class. The other option for purchase is trade-up with the asset of your present home. The census report reveals that 100 million Americans are renters. We know why - price.
Homes
The cost for a new home has climbed to $394,300. The average cost for a older, established home is $270,900. The latter appears more affordable until one considers this fact. Another report shows that 44% of all Americans are low-wage earners. This translates to an annual income of $18K to $20K per year. The Census Bureau says there are 38 million Americans in poverty. In another report by the Institute for Policy Studies found that there are 140 million Americans that are low-wage earners. In addition, there are 68 million Americans who collect a social security check each month. To put that number in perspective that is higher than the populations of France, UK, Italy or Canada. I believe it is fair to suggest that one-half of these recipients are living check-to-check. They will not be in a financial position to help the economy. Then, add to this number a rising poverty level (over 20% - see above figure) along with the homeless who are not counted and one realizes that over half of our population is in financial trouble. This is why home builders construct more multi-family homes each year rather than single family homes. By the way, this lack of entry level homes hurts the trade-up series for new homes.
Now, these figures help explain why new home construction has not risen in twenty years. The last recession only highlighted the problems - higher costs for land, workers and materials. Then, there is the cost for regulations, zoning and insurance. If those obstacles were not enough, add the cost of outsourcing of middle-class jobs and together, this means over half of our population cannot afford to make the most important consumer purchase, a home.
The second part of the equation is almost violating an American right of passage - a car. It represents so many aspects of our society. Libraries have rows of tomes written about it.
Cars
According to Kelley Blue Book, as of Dec.2018, the average cost of a new car is $37,577. A new car cost 25% more than a decade ago. However, it cost Americans more than 38% of their income to make a new vehicle purchase. Have wages climbed by that same percentage in the last 10 years? Sorry, I didn't mean to give you a heart attack by laughing. Even if a family has two, low-wage incomes to address a purchase, after all other expenses, this translates into around $400 per month. The only solution under those terms is for the payments to be stretched out over 96 months or 8 years. C'mon! That new vehicle will be almost ten years old by the time the payments end. You can readily see the problem for both consumers and auto manufacterers. After the last recession and the Obama solution, auto sales did respond. The closer look reveals that in 2008, the average age of autos at that time was almost 11 years. Everyone needed a newer car. With the economy recovering people were able to buy another vehicle. This set a nice streak for auto builders, however the streak is going to hit a wall like a long distance runner. Auto manufacterers were expecting another 17 million car sales in 2019. Sebastian warned that problems were looming. They are here.
China reported an 11% decline in auto sales. All US auto companies have seen decline in sales as well as all other global producers. In fact, this is the worst year for global sales since the recession of 2008. Nissan is close to bankruptcy. There are 7 million auto loans out there that are 90 days delinquent. This is what happens to people that are stretched to the limit with expenses. Unlike the government, citizens cannot "print" money. Presidential candidates who seek to take advantage of this situation without a real solution is corrupt at best. They make promises that only increase our already abusive national deficit. Deficits do matter and Cheney, you are an idiot! I also feel compelled to point the finger at the focal point which is the root cause of this situation - the Fed, our government spending and the military's role. The Fed devalues our money by excessive printing. Our citizens lose purchasing power and this excessive printing could cause a global fallout against the dollar as the world's reserve currency. Our government leaders use money like a carrot stick to stay in office and do nothing worthwhile for the nation. The military causes our deficits every year. They constantly BS about our national interest. They spend in over 100 countries and at the same time, deprive our nation from addressing real, internal concerns due to their paranoia. The Deep State is a disease that is rotting our nation.
Anyway, if you connect the dots of the two biggest consumer purchases, the economy is in trouble.
Other factors
What I am adding to the above is retail. This is the most important time of the year for retail. Analysts say that the American consumer is strong in confidence, their debt balances are under control and wages are rising. I cannot in good faith say I know enough if any of that is true or not. I do know this. This has been the worst year for store cloings in the US. Consumer spending is off to a good start. Black Friday has sale estimates approaching $4.45 billion. This would be a record and e-commerce continues to grow as demonstrated by Cyber-Monday. Consumers set a new record for sales which accounts for one-third of all holiday sales. Also, not all brick and mortar firms are under siege. Walmart, Target and Best Buy are doing great. Sadly, Macy's is not. Since Black Friday accounts for 6% to 7% of yearly sales for retail, the holiday season is off to a good start. I worry about the debt / credit card bills come this January. Also, in a related aspect, returns which is a growing problem for retailers.
In a related story by Juron, he noted that Americans are returning to bad habits with their homes. They are refinancing for lower payments. On the surface this would be smart except consumers are "cashing out." By this term Juron means that people are rolling over their debt with a new mortgage. They are using the extra cash to pay down debt (which is good) or purchase a car (trouble down the road). This debt surge is also showing up in a growing, dangerous debt, personal loans. People are seeking a personal line of credit. They have added over $300 million in debt which has come from their nest egg. This leaves people with no other resource for a rainy day. These are the type of errors that consumers make with their finances. If a hurdle in life arises, their is no rainy day money to cover the expense. The next thing you hear on this person is that they are included in delinquent category. It could be an auto loan, credit card bill or worse, their mortgage. These are the type of things which lead to a recession. Keep in mind the inverted yield in bonds which has never failed to indicate a recession, appeared this year.
I hate to be a bearer of bad news during this, the best of all seasons, but it is always cold in January. By the way, analysts said the same positive things for December 2018 and it was one of the worst holiday spending by consumers.
So long, old friend
Sadly, Bumble Bee tuna is joining Radio Shack. I'll miss ya!
Federal Reserve
Can't wait for the BS out of their first new year meeting. Retail prices will be a little higher this year due to tariffs, inflationary costs and the cost of financing for firms that are in trouble like J.C. Penny. There is also the problem of "shrinking." This is retail code for theft. It is rising and Home Depot drew attention to it in its last earnings report. Will the Fed even admit there is some inflation out there? Like I said, "Can't wait to see how they lie about this?"
Only $5.5 million.
Yes. It is a steal for a 30-second commercial for the 2020 Super Bowl.
One More Aspect to Housing
If, what I mentioned above were not enough problems for housing, add this. The passing of baby boomers will add 21 million homes to the US market. Granted, this will be a little at a time, but over the next 20 years, there will be an average of one million homes a year by death. This will create a crisis for some sun belt states like Arizona and Florida. They will force prices lower and offer this question. Will buyers want or be allowed to purchase homes in retirement communities? Something to think about if you are in one of these retirement villages and you want to leave your family your biggest asset?
Some Good News
There is a bond for forests. It provides money to clear some over abundant forests. The wood pays the bond while the forest cultivation makes the forest safer from wild fires. This is a win for the environment and wood has so many uses. There is mothing better than a real Christmas tree for the holidays. Take care, peace.
Connected Problems
The biggest consumer purchase in our consumer society is a home. The second is a vehicle. There is a serious problem with both transactions - price. The cost for a new home is unaffordable for purchase unless your income falls into the upper middle class. The other option for purchase is trade-up with the asset of your present home. The census report reveals that 100 million Americans are renters. We know why - price.
Homes
The cost for a new home has climbed to $394,300. The average cost for a older, established home is $270,900. The latter appears more affordable until one considers this fact. Another report shows that 44% of all Americans are low-wage earners. This translates to an annual income of $18K to $20K per year. The Census Bureau says there are 38 million Americans in poverty. In another report by the Institute for Policy Studies found that there are 140 million Americans that are low-wage earners. In addition, there are 68 million Americans who collect a social security check each month. To put that number in perspective that is higher than the populations of France, UK, Italy or Canada. I believe it is fair to suggest that one-half of these recipients are living check-to-check. They will not be in a financial position to help the economy. Then, add to this number a rising poverty level (over 20% - see above figure) along with the homeless who are not counted and one realizes that over half of our population is in financial trouble. This is why home builders construct more multi-family homes each year rather than single family homes. By the way, this lack of entry level homes hurts the trade-up series for new homes.
Now, these figures help explain why new home construction has not risen in twenty years. The last recession only highlighted the problems - higher costs for land, workers and materials. Then, there is the cost for regulations, zoning and insurance. If those obstacles were not enough, add the cost of outsourcing of middle-class jobs and together, this means over half of our population cannot afford to make the most important consumer purchase, a home.
The second part of the equation is almost violating an American right of passage - a car. It represents so many aspects of our society. Libraries have rows of tomes written about it.
Cars
According to Kelley Blue Book, as of Dec.2018, the average cost of a new car is $37,577. A new car cost 25% more than a decade ago. However, it cost Americans more than 38% of their income to make a new vehicle purchase. Have wages climbed by that same percentage in the last 10 years? Sorry, I didn't mean to give you a heart attack by laughing. Even if a family has two, low-wage incomes to address a purchase, after all other expenses, this translates into around $400 per month. The only solution under those terms is for the payments to be stretched out over 96 months or 8 years. C'mon! That new vehicle will be almost ten years old by the time the payments end. You can readily see the problem for both consumers and auto manufacterers. After the last recession and the Obama solution, auto sales did respond. The closer look reveals that in 2008, the average age of autos at that time was almost 11 years. Everyone needed a newer car. With the economy recovering people were able to buy another vehicle. This set a nice streak for auto builders, however the streak is going to hit a wall like a long distance runner. Auto manufacterers were expecting another 17 million car sales in 2019. Sebastian warned that problems were looming. They are here.
China reported an 11% decline in auto sales. All US auto companies have seen decline in sales as well as all other global producers. In fact, this is the worst year for global sales since the recession of 2008. Nissan is close to bankruptcy. There are 7 million auto loans out there that are 90 days delinquent. This is what happens to people that are stretched to the limit with expenses. Unlike the government, citizens cannot "print" money. Presidential candidates who seek to take advantage of this situation without a real solution is corrupt at best. They make promises that only increase our already abusive national deficit. Deficits do matter and Cheney, you are an idiot! I also feel compelled to point the finger at the focal point which is the root cause of this situation - the Fed, our government spending and the military's role. The Fed devalues our money by excessive printing. Our citizens lose purchasing power and this excessive printing could cause a global fallout against the dollar as the world's reserve currency. Our government leaders use money like a carrot stick to stay in office and do nothing worthwhile for the nation. The military causes our deficits every year. They constantly BS about our national interest. They spend in over 100 countries and at the same time, deprive our nation from addressing real, internal concerns due to their paranoia. The Deep State is a disease that is rotting our nation.
Anyway, if you connect the dots of the two biggest consumer purchases, the economy is in trouble.
Other factors
What I am adding to the above is retail. This is the most important time of the year for retail. Analysts say that the American consumer is strong in confidence, their debt balances are under control and wages are rising. I cannot in good faith say I know enough if any of that is true or not. I do know this. This has been the worst year for store cloings in the US. Consumer spending is off to a good start. Black Friday has sale estimates approaching $4.45 billion. This would be a record and e-commerce continues to grow as demonstrated by Cyber-Monday. Consumers set a new record for sales which accounts for one-third of all holiday sales. Also, not all brick and mortar firms are under siege. Walmart, Target and Best Buy are doing great. Sadly, Macy's is not. Since Black Friday accounts for 6% to 7% of yearly sales for retail, the holiday season is off to a good start. I worry about the debt / credit card bills come this January. Also, in a related aspect, returns which is a growing problem for retailers.
In a related story by Juron, he noted that Americans are returning to bad habits with their homes. They are refinancing for lower payments. On the surface this would be smart except consumers are "cashing out." By this term Juron means that people are rolling over their debt with a new mortgage. They are using the extra cash to pay down debt (which is good) or purchase a car (trouble down the road). This debt surge is also showing up in a growing, dangerous debt, personal loans. People are seeking a personal line of credit. They have added over $300 million in debt which has come from their nest egg. This leaves people with no other resource for a rainy day. These are the type of errors that consumers make with their finances. If a hurdle in life arises, their is no rainy day money to cover the expense. The next thing you hear on this person is that they are included in delinquent category. It could be an auto loan, credit card bill or worse, their mortgage. These are the type of things which lead to a recession. Keep in mind the inverted yield in bonds which has never failed to indicate a recession, appeared this year.
I hate to be a bearer of bad news during this, the best of all seasons, but it is always cold in January. By the way, analysts said the same positive things for December 2018 and it was one of the worst holiday spending by consumers.
So long, old friend
Sadly, Bumble Bee tuna is joining Radio Shack. I'll miss ya!
Federal Reserve
Can't wait for the BS out of their first new year meeting. Retail prices will be a little higher this year due to tariffs, inflationary costs and the cost of financing for firms that are in trouble like J.C. Penny. There is also the problem of "shrinking." This is retail code for theft. It is rising and Home Depot drew attention to it in its last earnings report. Will the Fed even admit there is some inflation out there? Like I said, "Can't wait to see how they lie about this?"
Only $5.5 million.
Yes. It is a steal for a 30-second commercial for the 2020 Super Bowl.
One More Aspect to Housing
If, what I mentioned above were not enough problems for housing, add this. The passing of baby boomers will add 21 million homes to the US market. Granted, this will be a little at a time, but over the next 20 years, there will be an average of one million homes a year by death. This will create a crisis for some sun belt states like Arizona and Florida. They will force prices lower and offer this question. Will buyers want or be allowed to purchase homes in retirement communities? Something to think about if you are in one of these retirement villages and you want to leave your family your biggest asset?
Some Good News
There is a bond for forests. It provides money to clear some over abundant forests. The wood pays the bond while the forest cultivation makes the forest safer from wild fires. This is a win for the environment and wood has so many uses. There is mothing better than a real Christmas tree for the holidays. Take care, peace.
Wednesday, November 27, 2019
Positive Heads
Every nation has its special few. Those are the ones who come up with ideas that are positive, both for the nation and the world. In the US we are blest to have one of our great ideas this Thursday: Thanksgiving Day.
There are many others who have enriched our lives. The friends of Teddy Roosevelt influenced him to create our national parks. How about Senator Gaylord Nelson who came up with the idea for Earth Day? There are many others, but we as individuals need to be the root of it all. With that in mind I present for you a song written by Jill Jackson and Sy Miller. I hope that I am not violating copy right laws as my purpose is to carryon the thought behind their words. We are blest to have their inspirational poem / song to give us all direction. The country singer, Vince Gill made it a national hit in 1993.
Let There Be Peace on Earth
Let there be peace on earth
And let it begin with me
Let There Be Peace on Earth
the peace that was meant to be.
With God as our Father
Brothers all are we
Let me walk with my brother
in perfect harmony.
Let peace begin with me
Let this be the moment now
With every step I take
Let this be my solemn vow
To take each moment and live
Each moment in peace eternally
Let there be peace on earth
And let it begin with me.
So, if we are fortunate to be invited to a family affair and traffic is moving, oh, so slowly, give the idiot in front of you the benefit of doubt. Don't beep your horn at him or her to move when they seem lost in their own thoughts. Let us keep in mind that we are not perfect. Stifle yourself at the checkout counter in stores with similar circumstances. Don't try to cut the line at the bus stop. Try to add a smile even if you are steaming inside in the TSA line at the airport. You get the picture: Let peace begin with me.
I have one other thought to add for your daily life. It is from a priest. You may or may not have heard of him, Padre Pio. This short prayer makes a great blessing for any occasion.
May Jesus comfort you in all your afflictions.
May He sustain you in dangers,
watch over you always with His grace,
and indicate the safe path that leads
to eternal salvation.
And may He render you always dearer
to His Divine Heart and always
more worthy of Paradise. Amen.
Have a great day. Drive carefully. Peace and love to all.
From the gang at Evolution of Democracy
There are many others who have enriched our lives. The friends of Teddy Roosevelt influenced him to create our national parks. How about Senator Gaylord Nelson who came up with the idea for Earth Day? There are many others, but we as individuals need to be the root of it all. With that in mind I present for you a song written by Jill Jackson and Sy Miller. I hope that I am not violating copy right laws as my purpose is to carryon the thought behind their words. We are blest to have their inspirational poem / song to give us all direction. The country singer, Vince Gill made it a national hit in 1993.
Let There Be Peace on Earth
Let there be peace on earth
And let it begin with me
Let There Be Peace on Earth
the peace that was meant to be.
With God as our Father
Brothers all are we
Let me walk with my brother
in perfect harmony.
Let peace begin with me
Let this be the moment now
With every step I take
Let this be my solemn vow
To take each moment and live
Each moment in peace eternally
Let there be peace on earth
And let it begin with me.
So, if we are fortunate to be invited to a family affair and traffic is moving, oh, so slowly, give the idiot in front of you the benefit of doubt. Don't beep your horn at him or her to move when they seem lost in their own thoughts. Let us keep in mind that we are not perfect. Stifle yourself at the checkout counter in stores with similar circumstances. Don't try to cut the line at the bus stop. Try to add a smile even if you are steaming inside in the TSA line at the airport. You get the picture: Let peace begin with me.
I have one other thought to add for your daily life. It is from a priest. You may or may not have heard of him, Padre Pio. This short prayer makes a great blessing for any occasion.
May Jesus comfort you in all your afflictions.
May He sustain you in dangers,
watch over you always with His grace,
and indicate the safe path that leads
to eternal salvation.
And may He render you always dearer
to His Divine Heart and always
more worthy of Paradise. Amen.
Have a great day. Drive carefully. Peace and love to all.
From the gang at Evolution of Democracy
Wednesday, November 20, 2019
GOLD: What Is Happening Now
Nothing goes straight up forever or down forever in the stock market. Generally, a stock moves within a range until a more definitive aspect of the firm reveals its future outlook. This application includes bonds and commodities. There are other ways to find the future projection. One nice aspect is charting. For those of us who use charts to follow price action, the use of the mathematical genius of the Fibonacci ratio is a must. I use this formula to project price patterns in conjunction with volume to price levels.
What Fibonacci Says Now...
It is no secret that gold fell from the $1500 level. It failed to maintain the rally that saw it zoom past $1500 price level on its way to $1566. The math genius of Fibonacci called it. The present, slow decline appears to be a complete Fibonacci retracement. If this is true, gold should return to its breakout area of $1448. As of Friday the 8th of November, it was $1452.
One would think that this means it is getting time to buy? Not so fast, Kimo-Sabe. There are some other important indicators in charting. One of them is patterns.
Patterns...
come in two forms. The first is a picture formed by drawing a line that follows price. It is like connecting dots. A shape can appear. Some prominent patterns are flags, pennants, cup and handle and so on. The other form could be called a cycle. The entity's price turns up for a period of time or it could turn down for a period of time. I noticed that gold is running in a 45 to 60-day cycle in 2019. This is not to say that this characteristic will carryover into 2020, but it is worth keeping track of. It has been very accurate in 2019. Take a look...
We begin by going back to December 2018. Gold sat at $1196. It began to rally to which also began this cycle / price movement. Flash forward in the 45 to 60-day period. You are in late February. Gold has rallied to $1349. If you like math, do the Fibonacci ratio. It works!
Then, gold began the downturn. For the next 45 to 60-day period, it declined to $1267. We are now in May 2019.
Gold, then moved into its up cycle. For the next 45 to 60-days it rallied. As we enter late June, gold hits $1400. Yay! I did well with Wheaton Precious Metal (WPM).
As per this recent history, gold fell back in the next 45 to 60-day period. After July and August notched their days on the calendar, we saw the cycle continue.
Gold rallied hard to $1566 as of the 1st of September. It has fallen from grace since that date. We are currently in the downturn 45 to 60-day cycle. As stated above, Fibonacci indicates that $1448 will be the resistance point. This price was the last breakout point. If the cycle is maintained, gold should rally sometime after Thanksgiving. (Praise God) This uptrend should carryover into the New Year. Pay attention to contract volume. It will provide clues as to the strength of the cycle and gold itself.
Longer term...
There is a strong relationship between the dollar and gold. When the dollar is strong, gold declines. When the dollar weakens, gold rises. King dollar is central to all commodities. Keep watch!
What Fibonacci Says Now...
It is no secret that gold fell from the $1500 level. It failed to maintain the rally that saw it zoom past $1500 price level on its way to $1566. The math genius of Fibonacci called it. The present, slow decline appears to be a complete Fibonacci retracement. If this is true, gold should return to its breakout area of $1448. As of Friday the 8th of November, it was $1452.
One would think that this means it is getting time to buy? Not so fast, Kimo-Sabe. There are some other important indicators in charting. One of them is patterns.
Patterns...
come in two forms. The first is a picture formed by drawing a line that follows price. It is like connecting dots. A shape can appear. Some prominent patterns are flags, pennants, cup and handle and so on. The other form could be called a cycle. The entity's price turns up for a period of time or it could turn down for a period of time. I noticed that gold is running in a 45 to 60-day cycle in 2019. This is not to say that this characteristic will carryover into 2020, but it is worth keeping track of. It has been very accurate in 2019. Take a look...
We begin by going back to December 2018. Gold sat at $1196. It began to rally to which also began this cycle / price movement. Flash forward in the 45 to 60-day period. You are in late February. Gold has rallied to $1349. If you like math, do the Fibonacci ratio. It works!
Then, gold began the downturn. For the next 45 to 60-day period, it declined to $1267. We are now in May 2019.
Gold, then moved into its up cycle. For the next 45 to 60-days it rallied. As we enter late June, gold hits $1400. Yay! I did well with Wheaton Precious Metal (WPM).
As per this recent history, gold fell back in the next 45 to 60-day period. After July and August notched their days on the calendar, we saw the cycle continue.
Gold rallied hard to $1566 as of the 1st of September. It has fallen from grace since that date. We are currently in the downturn 45 to 60-day cycle. As stated above, Fibonacci indicates that $1448 will be the resistance point. This price was the last breakout point. If the cycle is maintained, gold should rally sometime after Thanksgiving. (Praise God) This uptrend should carryover into the New Year. Pay attention to contract volume. It will provide clues as to the strength of the cycle and gold itself.
Longer term...
There is a strong relationship between the dollar and gold. When the dollar is strong, gold declines. When the dollar weakens, gold rises. King dollar is central to all commodities. Keep watch!
Wednesday, November 13, 2019
12
The number has many references. He started His church with 12 disciples. Now, during the present football season, the number represents the fans, especially with home games. They can help the home team by their support both emotionally and statistically. Fans can create a noise level whereby the opposition cannot call their plays effectively. In addition, their support encourages the players to give an extra effort.
Sadly, in the American economy, the number is the percentage of influence that manufacturing consists to the economy. This small percentage is scattered throughout the country which lessens the spillover effect that it once possessed. When we produced all our cars domestically, this helped American steel companies. It helped the textile industry. Its trickle-down effect supported local jobs like restaurants, service industries, food and apparel. Our poverty and homeless situation could be addressed by local government due to better revenues. This is why I say, sadly, the number twelve is a weak digit. There is another reason. The twelve percent influence is still under attack from foreign entities as well as domestic outlook.
Domestically and Foreign
The auto industry is still outsourcing. If it were not for foreign auto-makers establishing plants here in the US, our economy would already be in a recession. These firms are looking to get around future legislation concerning imports by building here in North America. Our two corporations have continually added in Mexico and Canada while decreasing work in the US. In the future new competition will arrive from China and India. Once the twelve percentage is broken, the arrow points to below 10%. Keep in mind that all the ancillaries industries like steel like auto parts like textile have already been replaced. There are related industries that I can argue are just hanging on. For example:
Energy
When I say energy, I refer to oil and gas. The US resourcefulness emerged front and center in this industry with the innovative approach with shale oil. The trickle effect here is steel, service supplies and machinery. We are now the top producing oil nation, but if one were to look at the XLE (energy index), it is at the same level it was in 2006. That is no misprint!
It is no wonder that two Fed governors downgraded our economic outlook. The New York and Atlanta Fed both see what Sebastian has been saying for the past few months.
Future Shock
If one were to look back on our history in relationship to conflict, manufacturing is of supreme importance. The North prevailed over the South due to its manufacturing superiority. WWI conflict came to a decisive end when the US entered the fray. It was led by our manufacturing ability. This same ability along with our resiliency and innovation is what helped us prevail in WWII. All those important influences no longer exist. The biggest uptrend in America today is poverty and homelessness. The candidates running for office had better wake up. We don't need ideas like the Illinois Bill#76. In this so-called recovery, we have lost another 25,000 manufacturing jobs. This is 25K less middle class and 25K more low level wages, at best. We need to declare that outsourcing means that that firm no longer gets US protection. They lose tax benefits and they will be taxed with tariffs like any foreign firm. That is what will make America great!
Sadly, in the American economy, the number is the percentage of influence that manufacturing consists to the economy. This small percentage is scattered throughout the country which lessens the spillover effect that it once possessed. When we produced all our cars domestically, this helped American steel companies. It helped the textile industry. Its trickle-down effect supported local jobs like restaurants, service industries, food and apparel. Our poverty and homeless situation could be addressed by local government due to better revenues. This is why I say, sadly, the number twelve is a weak digit. There is another reason. The twelve percent influence is still under attack from foreign entities as well as domestic outlook.
Domestically and Foreign
The auto industry is still outsourcing. If it were not for foreign auto-makers establishing plants here in the US, our economy would already be in a recession. These firms are looking to get around future legislation concerning imports by building here in North America. Our two corporations have continually added in Mexico and Canada while decreasing work in the US. In the future new competition will arrive from China and India. Once the twelve percentage is broken, the arrow points to below 10%. Keep in mind that all the ancillaries industries like steel like auto parts like textile have already been replaced. There are related industries that I can argue are just hanging on. For example:
Energy
When I say energy, I refer to oil and gas. The US resourcefulness emerged front and center in this industry with the innovative approach with shale oil. The trickle effect here is steel, service supplies and machinery. We are now the top producing oil nation, but if one were to look at the XLE (energy index), it is at the same level it was in 2006. That is no misprint!
It is no wonder that two Fed governors downgraded our economic outlook. The New York and Atlanta Fed both see what Sebastian has been saying for the past few months.
Future Shock
If one were to look back on our history in relationship to conflict, manufacturing is of supreme importance. The North prevailed over the South due to its manufacturing superiority. WWI conflict came to a decisive end when the US entered the fray. It was led by our manufacturing ability. This same ability along with our resiliency and innovation is what helped us prevail in WWII. All those important influences no longer exist. The biggest uptrend in America today is poverty and homelessness. The candidates running for office had better wake up. We don't need ideas like the Illinois Bill#76. In this so-called recovery, we have lost another 25,000 manufacturing jobs. This is 25K less middle class and 25K more low level wages, at best. We need to declare that outsourcing means that that firm no longer gets US protection. They lose tax benefits and they will be taxed with tariffs like any foreign firm. That is what will make America great!
Wednesday, November 6, 2019
Pentagon: US Biggest and Dangerous Problem
Debt ceiling...
Is coming back in the news. No one will point the finger at the Pentagon, but they should. They are the chief reason why we have deficits every year and they are responsible for pushing our country into bankruptcy along with the Federal Reserve. Here is a recap:
There was a period of hope just after WWII when Americans sought to get back to our roots: avoid foreign entanglements and to promote the general welfare.
The general welfare enjoyed full employment. The G. I. Bill resulted in a housing boom as pent-up demand from the war made social mobility flood into the middle-class. This masked the first hope. The Iron Curtain in Europe led to the Cold War. The US found an uneasy peace with the nuclear standoff, however the military kept its power within our government.
Another Chance
In 1991 we had a second chance as the USSR crumpled under the weight of military spending by their government. The failure of a planned economy added to the excessive debt. All we had to do was live up to promises made in meetings with Reagan and Gorbachev. We could have cut the military budget by two-thirds. We could have used that money for research, rebuild our infrastructure and repaid our national deficits. We didn't.
The problem surfaced behind the scenes. The pentagon had influence with military contracts throughout the nation. In the South it had military bases which provided those states with employment. In the West it used research facilities to buy the influence of those states. It controlled Congress. This made it even more powerful. None of our so-called leaders spoke out against this danger. Money buys influence.
In time the pentagon found new avenues of danger that they could manipulate into our national attention. Russia was reawakening in the Middle East in Afghanistan. The CIA helped the opposition and its leader, Osama Bin Laden. When that episode ended, the "Deep State" kept the Middle-East in the news. The story flipped. The so-called ally, Bin Laden was anti-West. He posed a danger. Through BS, they convinced a small minded president that terrorism would be a growing threat to the US. The tragedy of 9/11 made their case.
WMD
Remember weapons of mass destruction? The war-mongers at the pentagon threw fear into the news. A dirty bomb could be used by these terrorists.
In reality, they hi-jacked planes like Cuban sympathizers in the 1970s. As a nation, we received endless wars with excessive debt. We have a growing homeless and poverty rates as our best paying jobs are outsourced under the flag of staying competitive. This masks the lie of greed and profits before what is best for the nation. This military grab for power under our so-called "national interests" is sending us recklessly down the road to financial ruin just as the USSR suffered in 1991. We are the danger to the world as our military "empire" is in over 100 countries.
In today's news we hear of the BS of the Ukraine / Biden inquiry when the real news is we provide that nation with almost $500 million in military hardware with borrowed money. Dear Reader, this is on the Russian doorstep. No wonder they are paranoid. Look at this from a Russian perspective? Gorbachev was promised after the Berlin Wall came down that NATO would not expand. It has. The pentagon had us back Osama and then, we went after him. Recently, we were allies with the Kurds in the Middle-East. Now, we left them in the desert sun. At the same time our military budget has grown to over half of our budget at $750 billion and this is borrowed money. People, our national defense could protect us with a just $250 billion. The rest is waste spend in endless wars while generals seek a lifestyle of the rich and famous. Every year we spend money that we don't have that goes off in a blast of a poorly aimed fire power. We should be helping Americans with good paying jobs as we rebuild our bridges, roads and tunnels.
Our society has an uneasy peace. Least we forget that we are an experiment. We are not a homogeneous society like most nations. Our economy has lost almost all of our manufacturing. Our future has been mortgaged due to the pentagon's reckless adventures. Just add up their recent performance.
Our foreign intelligence is a joke - WMD?! The pentagon is a group of war mongers who sit around a table talking in a paranoid state. They see danger just looking out the window. They request things like new air craft carriers when that ship is obsolete due to smart bombs. They should be building just new age subs and cyber-security.
How about one of the many military agencies like NSA? These are the biggest idiots of all! The FBI gave them the tip of the terrorists in San Diego. They refused to share their data with the FBI on those same terrorists. In fact, the NSA people watched this same group traverse the country right up to the airline ticket counter and did NOTHING! TOLD NO ONE! They are responsible for 9/11.
How about the internet to which we invented. We get hacked everyday, including government agencies. The Deep State uses its power with the media to stop any withdrawals of troops in the Middle-East like the present moment in Syria. These people will never give peace a chance. I ask, where is the anti-war message from any candidate running for office? When will we return to our roots as President Washington advised upon leaving office, "Avoid foreign entanglements and promote the general welfare." If not now, when?
Is coming back in the news. No one will point the finger at the Pentagon, but they should. They are the chief reason why we have deficits every year and they are responsible for pushing our country into bankruptcy along with the Federal Reserve. Here is a recap:
There was a period of hope just after WWII when Americans sought to get back to our roots: avoid foreign entanglements and to promote the general welfare.
The general welfare enjoyed full employment. The G. I. Bill resulted in a housing boom as pent-up demand from the war made social mobility flood into the middle-class. This masked the first hope. The Iron Curtain in Europe led to the Cold War. The US found an uneasy peace with the nuclear standoff, however the military kept its power within our government.
Another Chance
In 1991 we had a second chance as the USSR crumpled under the weight of military spending by their government. The failure of a planned economy added to the excessive debt. All we had to do was live up to promises made in meetings with Reagan and Gorbachev. We could have cut the military budget by two-thirds. We could have used that money for research, rebuild our infrastructure and repaid our national deficits. We didn't.
The problem surfaced behind the scenes. The pentagon had influence with military contracts throughout the nation. In the South it had military bases which provided those states with employment. In the West it used research facilities to buy the influence of those states. It controlled Congress. This made it even more powerful. None of our so-called leaders spoke out against this danger. Money buys influence.
In time the pentagon found new avenues of danger that they could manipulate into our national attention. Russia was reawakening in the Middle East in Afghanistan. The CIA helped the opposition and its leader, Osama Bin Laden. When that episode ended, the "Deep State" kept the Middle-East in the news. The story flipped. The so-called ally, Bin Laden was anti-West. He posed a danger. Through BS, they convinced a small minded president that terrorism would be a growing threat to the US. The tragedy of 9/11 made their case.
WMD
Remember weapons of mass destruction? The war-mongers at the pentagon threw fear into the news. A dirty bomb could be used by these terrorists.
In reality, they hi-jacked planes like Cuban sympathizers in the 1970s. As a nation, we received endless wars with excessive debt. We have a growing homeless and poverty rates as our best paying jobs are outsourced under the flag of staying competitive. This masks the lie of greed and profits before what is best for the nation. This military grab for power under our so-called "national interests" is sending us recklessly down the road to financial ruin just as the USSR suffered in 1991. We are the danger to the world as our military "empire" is in over 100 countries.
In today's news we hear of the BS of the Ukraine / Biden inquiry when the real news is we provide that nation with almost $500 million in military hardware with borrowed money. Dear Reader, this is on the Russian doorstep. No wonder they are paranoid. Look at this from a Russian perspective? Gorbachev was promised after the Berlin Wall came down that NATO would not expand. It has. The pentagon had us back Osama and then, we went after him. Recently, we were allies with the Kurds in the Middle-East. Now, we left them in the desert sun. At the same time our military budget has grown to over half of our budget at $750 billion and this is borrowed money. People, our national defense could protect us with a just $250 billion. The rest is waste spend in endless wars while generals seek a lifestyle of the rich and famous. Every year we spend money that we don't have that goes off in a blast of a poorly aimed fire power. We should be helping Americans with good paying jobs as we rebuild our bridges, roads and tunnels.
Our society has an uneasy peace. Least we forget that we are an experiment. We are not a homogeneous society like most nations. Our economy has lost almost all of our manufacturing. Our future has been mortgaged due to the pentagon's reckless adventures. Just add up their recent performance.
Our foreign intelligence is a joke - WMD?! The pentagon is a group of war mongers who sit around a table talking in a paranoid state. They see danger just looking out the window. They request things like new air craft carriers when that ship is obsolete due to smart bombs. They should be building just new age subs and cyber-security.
How about one of the many military agencies like NSA? These are the biggest idiots of all! The FBI gave them the tip of the terrorists in San Diego. They refused to share their data with the FBI on those same terrorists. In fact, the NSA people watched this same group traverse the country right up to the airline ticket counter and did NOTHING! TOLD NO ONE! They are responsible for 9/11.
How about the internet to which we invented. We get hacked everyday, including government agencies. The Deep State uses its power with the media to stop any withdrawals of troops in the Middle-East like the present moment in Syria. These people will never give peace a chance. I ask, where is the anti-war message from any candidate running for office? When will we return to our roots as President Washington advised upon leaving office, "Avoid foreign entanglements and promote the general welfare." If not now, when?
Subscribe to:
Posts (Atom)