End the Fed!

 - "Ask not what your country can do for you, but what you can do for your country..."

- JFK

Do you really think and believe that Chairman Powell is motivated to do what he can for America? We, at Evolution, definitely don't. He is motivated by ego. The whole concept of the reserve was formulated by the rich, JP Morgan and company for the status quo. They privatize the profits and socialize the losses. This is the way he thinks, "The American economy won't descend into a depression on my watch." So, he goes with the playbook of zero interest rates, savers be dammed, the 40% low wage earners will continue to suffer and the wealth gap continue to grow. He plans to keep his job and this policy until 2025. Yes, he says as well as anyone who gets the post that the Congressional mandates of fighting inflation and full employment are the cornerstones of the Federal Reserve thinking and policy. So much BS!

Second thoughts?

You have doubts about our feelings for the private firm, the Federal Reserve? Consider what the same chairman stated almost three years ago. The Fed's policy would return to normalize interest rates. The move would be gradual so as not to spook the market or international currencies. He said by 2020, the 10-year note would be around 3.75%, Let's take a look at this man's convictions. The 10-year rate is now 0.72%. He is saying that whatever US citizens purchase for the next ten years that inflation will hold prices below three-quarters of a percent. Can you remember anything that has not gone up in price in ten years? Put it in concepts that everyone understands. A new car today versus 2010? Rent today versus 2010? The price of a medium, new home today is $320,000 versus the medium price of $200,000 in 2010. The cost of a stamp in 2010 was .44 cents and today, .55 cents. So much BS!

Chinese look to gain...

Guo Shuging is the equivalent of Powell in China. He is the chairman of the Chinese Banking Regulatory Commission. He recently criticized Powell and the Fed for excessive money printing which could cause international currency problems. His policy is wrecking trade and putting all nations in financial jeopardy. He is right, but of course, we can see through his agenda. China does the same excessive printing and worse. The government tells banks to roll over all debt in all circumstances. He is a hypocrite! So much BS!

Not alone...

The chairman only reflects the type of people and thinking that dominates America. Did you read in the news where Microsoft and Walmart might partner to buy the Chinese firm TikTok? Why, you ask? Simple, they want the firm for advertising. Advertising works! They brush off the fact that this is nothing but a info gathering concern that the Chinese government will use to influence America. Our firms are free to act in our open society, but their greed is excessive. This is what is wrong with present  day America. Yes, we have investors who put their money into green energy and partner with firms that are trying to do something for our country, but their numbers are insufficient to enact any impact for the better. Last week, Warren Buffett reached his 90th birthday. It took him a long time to show wisdom for the general good and not just for the pocketbook. He always was against gold because it did not pay a dividend. Maybe the founding fathers knew that too, but they chose gold because it limits spending, keeps your currency strong and fights inflation. It retains value. You cannot print gold. It gave our nation a cornerstone of stability. That is the dividend! Glad he joins Jefferson and Franklin and Evolution of Democracy. By the way, do you know who first realized this weak point about capitalism, which is nothing more than good and evil among people? That they will sacrifice any principle if they can get more profits? Stalin. He stated it over 100 years ago.

Budget numbers are out

The Fed has printed in excess of $9 trillion and our revenues to the government is $3.5 trillion. The gap of $5.5 trillion to the debt side is not just alarming, but continues to grow. Both political parties seek to "buy" voters with stimulus plans. They are asking the government to do rather than what they can do for America. This is more debt. This is how you destroy a currency. Keep in mind that the US is the world's reserve currency. Powell is putting that gift in peril. You read above where China is seeking to capture this position. If we ever lose this economic trading pedicle, inflation will run rampant in the US. Gasoline could easily double. The pandemic showed the dangers of importing everything. We imported our face masks, our PPE, everything! Do you realize what inflation will do to prices? Everything will go up! The Fed is taking the road to hyperinflation. If anyone from 1920 Germany was still alive today, this is what they would say, "Stop in the name of Love..." I never thought that the Supremes would be an economic indicator. However, this is the Oracle of Omaha's favorite indicator. You take the total market cap(TMC) and apply it to GDP. Do you know what the present reading is? 183%! No wonder Buffett saw the shine in gold. Both political parties are going to make it worse. Neither will admit the Federal Reserve destroys the dollar and our standard of living. This is why we need a new political party. If I ever had the money and resources, the Liberty Party would end all foreign entanglements and promote the general welfare like our founders envisioned. And of course, we would End the Fed!

Odds and Ends: August 2020

 Much Ado About Nothing - Shakespeare

The dog days of summer are passing and the hope is that it takes Corvid-19 with it. For many, these last days of the summer are spent with relaxing reading. We, at Evolution feel the Bard of Avon is appropriate. In contrast, the market is in a rotation period. Market watchers understand that the market has leaders, best power forward, cleanup batter or QB. This period is marked by what big money sees as the next big thing and they rid themselves to what they see as fading. One can clearly see this with Buffett. He cut his financial holdings and (this falls under Ripley's Believe It or Not) purchased gold. He chose one of our favorites, Barrick. Yay! 

You can also see this in the steady rise of hedge funds favorite chip-maker, Nvidia. It is expensive, but the company is expanding. It looks to capture the upgrade cycle period from Google and Microsoft. It is not just graphics anymore. With those examples, the recent records set by the market indexes is very deceiving. 

- Men were deceivers ever - One foot in sea and one on shore

Apple is king! We do not refer to New York, although the Yankees are fitting. We are talking markets. The FAANG tech leaders of last year are no longer a group, but just the chairman - Apple. The stock is responsible for the record highs. If Apple rises, so does the market. If it declines, which is rare, the market follows. This is due to the weighted structures which are led by Apple. This reality is giving a skewed view of the strength of the market. The cell phone leader has a new buddy in Tesla. Together, they are pushing the market higher. We dug deeper. The Advance/Decline line is trending lower. We see that new market highs barely edged out new market lows. The other aspect is the phoniness of the people who determine the stocks that make up the Dow and Transportation Index. This week they kicked out one of the most important company that America produced - Exxon. This has big ramifications for the market. There are many funds that mimic the indexes. They will buy the new like Salesforce and sell the old like the oil giant. This action just prior to options expiration on Friday is reeked with corruption. The words of wisdom from William began this paragraph. Know their intent! 

- I would challenge you to a battle of wits, but I see that you are unarmed!

China is smart. They always enact plans that look out further into the future. They control many rare earth items. In addition, they copied the US idea for a reserve petroleum reservoir. They just ordered 2,000 tons of cobalt. This commodity is a key material for battery operated electric vehicles. They do these things to be prepared unlike the US which did not even have basic health items like face masks or hand sanitizer. With the elections coming, the way we see things here at Evolution, both the Democrats and Republicans suck!

Of course, relations with China will be a big issue as the public finally became aware that we are to dependent on imports, especially from China. A Bank of America report says that it will cost the US economy $1trillion to get out of China. With all the wasted trillions that the government spent due to the virus, I say that this would be money well spent. Saudi Arabia agrees! They just pulled out of a $10 billion deal to have a oil refinery built in China.  

- I rather hear my dog bark at a crow, than a man swear he loves me.

Do you remember the mantra, "Dow 36,000?" Well, I guess with inflation, their new version is, "Dow 50,000." These unknown, want-a-be make statements with no conscious. We have one. A report stated that mortgage delinquencies are up more than 8% in the second quarter. This trend is up 4% from the first quarter. The forecast in the 3rd quarter is (are you sitting) 12%. Yowza! These stats are from bank loans. The FHA government loan program hit its own record at 16% in the 2cd quarter. Note: Almost all these problem loans are protected by the CARES Act, but it is expiring. President Trump signed an executive order to shield the public from this dangerous crisis, however we feel it will not stand up. Eviction notices and defaults proceedings are happening. When this news hits the market in mid-late September, we see a Dow at 23,000. 

If your region is under the virus stress, don't call Pizza Hut for dinner. They just closed 300 stores. Green Street Advisors stated in a report that they expect more than half of all mall-based department stores to close by the end of 2021. The process is under way with 14 major retailers filing for bankruptcy. If you prefer to glance at a magazine rather than a book, check out Rolling Stone. In it, Wade Davis writes about many issues we have noted here at Evolution. He fears that a change is happening in world leadership. The US time is passing to China. We say that if the US ever publishes my book and enacts some of my ideas, the US will experience a new surge like Constantine gave the Romans before it all ended. Another writer that we like is Michael Sandel with his book, "Justice." Of course, this week ends with the Fed annual meeting in Jackson Hole, Wyo. In their last published report the Fed did not disclose how much in dollars the amount of bonds that they will buy. They did say that they would not mind if inflation surpassed their 2% goal. Everyone knows that food and shelter is way above the government stats on inflation. This returns us to Shakespeare, and his work, Much Ado About Nothing. Peace.

Warning Signs

- Signs - Five Man Electrical Band

Sign, sign, everywhere a sign

Blockin' out the scenery, breakin' my mind

Do this, don't do that, can't you read the sign?

Fundamentalists want data. Techs need their candlesticks and charts. We, at Evolution use a hybrid of the two. The stronger forces within the market favor a recovery even in the face of negative news. They prefer the rumor hopes. They are winning. They attack every short which bursts the market even higher. The one big flaw in this reality is the market settles at the new price whether individually on in the indexes. These new price levels are your first warning. The evaluations are not justified. The overlooking of the debt influence in the earnings report is another time bomb. Lawyers and accountants have changed thinking on assets and liabilities. They made debt a positive. They can do this in their earnings report. It is not a positive! The bomb faltered because the Federal Reserve made interest rates devalue old debt.  Now, they have no more ammo. This is another warning sign. And we have this case to show our point...

We read this in the news: A company that made over $21 billion in 90 days with $13.7 billion in profits is entering the debt market. Why? To pop up their stock price with the positive aspect that debt is now an asset. Can you name this firm? Apple.

Back in the day when there was an actual unemployment office, people didn't need the media to tell them that things were rough. They could see the crowded offices and long lines around the block. The internet eliminated all that visual. Today, there are even longer lines, but cutbacks to unemployment agencies have stifled wage benefit claims. The media was quick to say that last weeks unemployment claims fell below one million for the first time since February. Our Economic Evangelist says, "Unemployment is averaging over five million for every month since February." That is a very scary warning. 

It gets worse...

There is another office where the phone is ringing off the hook. Where appointments are backed up into 2021 and there is not enough people and space to conclude this necessary business. Can you guess where it is? The Bankruptcy Court.

Keep in mind when you view the list to which grows every day and week that these firms represent thousands of employees. When their case is heard and with the way lawyers made this court, the rubber stamp of the law will send thousand if not millions more people to attempt to file a unemployment claim, but no one will see this visual. It is another negative of the internet. The internet is treated like globalization. The media reveals all good news and hides the bad. There is no balance. This is another warning sign.

Before I provide this list there is another list that is growing even bigger. It will effect many millions of people and our economy. It is the restaurant industry. This effects not only workers, but local farmers. There are stats which show that one-third of all new restaurants will fail within two years. This year, due to the virus, the failure rate could rise to 67%. This is not just a warning, but a catastrophe. Our malls are hemorrhaging. Society is getting scared and they will fear more when the visual of boarded up restaurants become a everyday occurrence. When the market becomes aware, a crash will happen. We all know the month of October is the poster month for these epic down days. There is a day of reckoning coming. This is our warning to you.    

There are already 82 defaults on credit this year. The S&P has downgraded the credit of more than 1970 companies. It is more than any year ever! They forecast that the default rate could rise to 12.5% by next March. Globally, credit downgrades have surpassed 600 firms which is double the recession of 2008.

Here is a sampling of the firms in bankruptcy:

Diamond Offshore Drilling, Black Ridge Technology, Real Good Solar, Valeritas Holding Inc, Pier 1 Imports, McDermott International, Globe Photos, Yuma Energy, Frontier Communications, Carbo Ceramics, Quorum Health, Stein Mart, LSC Communication, United Cannabis, Whitney Petroleum, Helios and Matheron Analytics, Eco-Stim Energy Solation, Foresight Energy, McClatchy, Omagine, Stealth Technologies, Generation Zero, Broad Vision, Neiman Marcus, Pioneer Energy Services, and on and on....

Sadly, one more piece of news. The space station took a picture of the Three Gorges Dam in China. This is the world's largest dam and provider of clean hydro-electric energy. The picture shows the dam is bending from excessive flooding within the nation. We need to say a prayer for the atheists. This dam is a great engineering feat and millions of lives could be lost if it breaches. The forecast does not look good as two typhoons could happen. This is also a warning that is so dangerous that it relates. We pray that nothing bad happens. Peace.

Tell Two People

 "Some gotta win, some gotta lose, Good Time Charlie's got the blues..."

- Danny O'Keefe

This piece has festered within me for a long, long time. I should clarify. Here, at Evolution, we have four writers: Johnny L, Sebastian, JFL and the Economic Evangelist. JFL and Sebastian are the founding fathers of this blog. The mission statement is on top of the website. We have published articles once a week ever since Google offered a free blog site. The government would call this blog, "Populism." Dear Reader, populism is condescended by government. JFL is doing this effort. 

Politicians forget the many benefits and the on-going struggles by our society that gets its points across through the streets and now, the internet. Populism is responsible for the 40-hour work week. Greedy producers had people work 14-hours a day for six days every week. There was no overtime. There was no medical if injured on the job. There was no unemployment insurance. There was no social security. There was no unions. They still battle to stop workers from forming unions. The list goes on and on. Many of today's cries were from yesterdays lack of resolution.

With that said, JFL was playing softball with his team. The members were down due to loss of work while bills still come in the mail. Losing our first two games only compounded the negative vibes. JFL does not have economic problems. He does however, fear that all his efforts will end with nothing. The internet offers some words of praise for blogs and writers who made some gutsy and prophetic calls. Our site and more importantly, JFL has never get any recognition. This is the point of his distress.

Recap

JFL told you in April of this year when oil touched $10 a barrel that $42 would be the bottom range. It hit it last week.

JFL told you when gold fell below $1500 an ounce in March of this year that it was going to $1800. When it crossed that barrier in June, he declared that gold would hit $1956. It did and how!

JFL gave you four various priced gold stocks for all economic levels of investing. The four: Argonaut Gold, Newcrest Mining, Barrick Gold and Wheaton Precious Metals. They all hit a new 52-week high.

With all that, not even a dog biscuit. JFL almost lost it when he listened to the Nobel Prize winner, Esther Duflo on PBS saying that immigrants do not steal low level jobs or cause wages to decline. She had a lot of good points on poverty, but her views on immigration are way off the mark. JFLs research shows that 53% of hospitality workers are Hispanic. Contract suppliers which is another type of outsourcing, keep wages low with no raises that take advantage of this working group of which many are illegals. Excess immigration with low paying service jobs are reflected in our growing homelessness problem. She got it wrong!

Then, last week, PBS had another Nobel Prize winner, Isabel Wilkerson. She has a book out called, Caste. She is an activists for black civil rights. She is intelligent, but in her work she uses many other immigrants, mainly white Europeans to drive home her point, the origins of our (black) discontent. It is this: blacks are treated like the outcasts of India with its caste system. Blacks are on the bottom. White Europeans were also discriminated against, but less so due to being white. They settled somewhere within the totem pole. These are all very accurate points, however, she leaves out the most important aspect. How can you either of these two writer's get Nobel's when they have such glaring faults? Wilkerson's defect is this: Irish immigrants were discriminated before blacks even were forced into America. The root of the hate is due to their religion. Irish are Catholics as well as Italians and Poles. Our names reveal our heritage and then, the haters know that we are Catholic. Too many black leaders concentrate on black issues. When they offer solutions, they forget that remedies are for all Americans.  In the slogan "Black Lives Matter," I immediately saw the flaw. It should read, "All Lives Matter." However, I can forgive this oversight. The meme sprang from the continuous, senseless killings of people, black people for things like a burnt out taillight. It was a response and not an intellectual concept. However, black leaders continually neglect to consider their actions and thoughts with all citizens taken into account. JFL does. In his unpublished work: The Evolution of Democracy: the Book of Multiple Ideas and Predictions, he offers more than either of these two Nobel winners and he cannot even get published! No wonder, I got the blues. At the moment, the market will give many people the blues. It will be nasty. I think there was a leak to Biden's running mate and the market does not approve. The market did not have to wait long. He chose Harris. So, phony. He hopes to get both the black vote and women's vote with no vision for America other than his ego. Enough said.

I got this off my chest. Maybe the team will win this week? No matter what happens, this blog will return to writing about politics and economics. Whether you agree or disagree with our viewpoint, you have to give us the respect that we are honest. So, please, help our site by telling two people about it who can tell two more people and so on. Thank you, peace.

The Myth of our Economy

President Trump likes to point out that before the pandemic, the economy was booming. The Democrats like to say that the economies recovery is due to Obama. You know what? They are both BS artists!
At Evolution, we have gathered proof that the anti-worker, anti-union powers-to-be with all their outsourcing is destroying the concept of America. From stats from the Labor Bureau and Social Security we found that 51% of working citizens earn less than $30,000 a year. If you do the math this translates to a weekly income of $600 bucks. This is the same figure that both political parties are haggling over in another stimulus program. If you dig deeper, it translates to $15 per hour. That is the same figure that led the mantra of wage protests two years ago. Back to the stimulus debate. Sadly, the only truth in the arguments is that this figure ($600) is more than what many make by working. When you continue reading, you will see that the low level of income by Americans is due to service type employment. It not only does not provide a living wage, but kills social mobility.
It gets worse. The once respected income of $50-grand-a-year, is not reached by 70% of workers. This means that you have a paycheck of $1,041 per week. This is union level wages. This is a living wage. This enables the children of these families to improve our economy with social mobility. If you think with the low number of Americans reaching this figure is bad, how about this?

Participation Rate

As of June, it is 61%. The math says 39% of us who are eligible to work, aren't. Do you know what this translates to? It means for one reason or another, there are 102 million Americans who do not work or have a job. This is one-third of our population!

None of the above stats account for the virus. This is how we live in America. When the government performs their formula for inflation, they do not count the three basic needs by everyone: food, energy and shelter. In the next section, the Economic Evangelist did a research of all 50 states in regards to renting a one bedroom apartment. In a past piece, we at Evolution have shown you why working citizens cannot afford to buy or qualify for a home. The standard test is one weekly paycheck must cover the mortgage. By the above stats, only 30% of Americans can qualify to purchase the medium home in the US which costs $248,000. Forget a new home. The average price is $302,000. So, our man chose a basic unit. Consider who lives in this apartment. It will be a single man or woman, a childless married couple or retirement age people. Keep in mind that $30,000 a year is not reached by 51% of the population. Workers are closer to $20K. The rents will be the average cost for a one bedroom unit. It is also true that it costs more to live in certain locations like San Fran, New York or Seattle. A mailman's income is borderline poor in those cities, however he is securely middle-class in many states and rural areas. The chart will show the state, the cost and conclusion - workers need 50% of income just to meet rent in most locations. What does that leave them for food, energy, insurance - life? Sadly, one weeks pay covers the cost in only a few states.
State                                                  Rent                                               Conclusion
Maine                                                $780                                          Costs 50% of income
Utah                                                  $805                                          Costs 50% of income
Vermont                                            $974                                          Costs more than 50% income
Washington                                       $1,178                                       Costs more than 50% income
Colorado                                           $1040                                        Costs 50% of income
Minnesota                                         $705                                          Less than 50%, but expensive
Oregon                                              $984                                          Cost more than 50% income
Pennsylvania                                     $830                                          Less than 50%, but expensive
Montana                                            $625                                          Affordable (only one so far).
Wisconsin                                         $680                                           Affordable (2 in a row!)
D.C.  (only one not a state-yet)        $1493                                         Off the charts for a slum!
New Hampshire                                $1052                                        Costs more than 50% income
Kansas                                               $673                                          Affordable
Alaska                                                $946                                         Costs more than 50% of income
Wyoming                                            $625                                         Affordable
Massachusetts                                     $1313                                      Costs more than 50% of income
Iowa                                                    $606                                        Very affordable
Connecticut                                         $1083                                      Costs more than 50% of income  Michigan                                              $726                                       Less than 40% of income
Illinois                                                 $913                                        Costs more than 50% of income
Virginia                                                $1067                                     Costs more than 50% of income
Missouri                                               $667                                       Affordable
North Carolina                                      $769                                      Less than 40% of income
Delaware                                               $1035                                   Costs more than 50% of income
South Dakota                                        $569                                      Very affordable
Nebraska                                               $662                                      Affordable
Hawaii                                                   $1444                                    How do they make rent?
Idaho                                                      $663                                      Best state-worth every penny
Maryland                                               $12                                        Costs more than 50% income
Rhode Island                                          $978                                      Costs more than 50% income
Kentucky                                                $608                                      Very affordable
Arizona                                                   $869                                      Costs 50% of income
Indiana                                                    $664                                      Affordable
North Dakota                                          $582                                      Very affordable
Oklahoma                                               $605                                      Very affordable
Arkansas                                                 $579                                   Very affordable(3straight,Wow!)
Nevada                                                    $901                                     Costs more than 50% income
Georgia                                                    $878                                     Costs 40% of income
West Virginia                                           $605                                    Affordable(if you can find work)
South Carolina                                         $779                                    Costs more than 50% income
New Jersey                                               $1255                                  Expensive
California                                                  $1449                                  Even more expensive!
Ohio                                                         $669                                     Affordable
Florida                                                      $979                                    Costs more than 50% income
Tennessee                                                 $710                                    Close to 40% of income
Texas                                                         $856                                    Costs 50% of income
New York                                                  $1292                                  Consider taxes- unaffordable!
New Mexico                                              $681                                    Affordable
Mississippi                                                 $665                                   Affordable
Alabama                                                     $685                                   Affordable
Louisiana                                                    $685                                   Affordable

Dear Reader, there are only 16 states where the average income can afford a one bedroom apartment. This is the lie of both political parties. We need a new third party. The platform is no wars. Cut the military. Put tariffs on all imports and especially to outsourcing firms like Nike, Apple, among others. Tax the internet to help retail and stop the disease of Amazon. Put in place renewable energy for quality jobs and redo our infrastructure. And the most importantly, End the Fed! Together this simple agenda will not only cut our deficits, but it will clear the path that leads to the American Dream.
             

Odds and Ends: July 2020

As time moves along, we sit closer to 2021 than 2019. No one saw what we face today. We have a president that is turning to the playbook of Tricky Dickie. It calls on fear with the meme of law and order. If you recall your history, Hitler used the same formula in Germany. The Democrats are going with the idea to buy votes. They are targeting segments in society that they need to win in swing states. Biden has offered plans for manufacturing. Suddenly, this outsourcing candidate (NAFTA) is saying that we need to protect jobs and create quality work - a living wage. He also seeks to grab progressive votes, (Bernie Sanders) following with government handouts. This appeals to millennials. Soon, he will offer something for senior citizens. Dear Reader, he will probably win. We can only hope that he has no convictions like Obama because the country is close to bankruptcy. By the way, he is using the playbook that Ben Franklin feared, "...democracy allows citizens to vote themselves benefits...the nation will suffer from that point."

Fear Factor...

is not only rising, it is becoming ingrained. President Trump may or may not know that he is laying the grounds for totalitarianism. He has an obligation to protect, but it is a fine line to play politics by using federal troops or officers in military gear to stop civil unrest. It has been used many times by past presidents and history shows this is a status quo position. It is anti-democratic. It is not good. Today, it shows especially bad when the local government leaders do not want their presence in their zone of influence. This is more than state rights versus federal government. If he keeps doing this, a future dictator/president could emerge. The economics of our present dilemma is bad enough, but excessive police force is only one step away from fascism.
The size of these military style officers is also dangerous. Currently, there are over 800,000 of these personal. If I was the mayor in Portland, this is what I would do. Have citizens walk in areas that these officers congregate. If they are not allowed to walk and pass peacefully on city streets, have your local police officers arrest them as a violation of peaceful assembly. If they resist. So be it. It is better to face an early disease than to let it foster and grow.
P.S. The same thinking should have been the approach to the virus.

Fear is spreading...

In South America the fear factor is also growing. The president of Brazil, Jair Bolsonaro, has some serious issues with democracy. Brazil is by far the biggest economic and populous nation in SA. Before this man became president, he has said some scary thoughts. In 1997 as a member of their Congress, he backed a new drug by a medical firm. When asked if it worked, he said, "I don't know. I'm a military man. My skill is to kill." Later, in 1999 when he got upset with the government, he said, :Let's end Congress! Go straight to dictatorship!" He has been infected by the virus and yet, he still does not mandate using a mask. His country leads SA in infections. It is third in the world with deaths. My feeling on masks is this. I do not like them, but in consideration of my fellow citizen, I will wear one. I would like my neighbor to show the same consideration to me and any establishment that they enter. We need this sickness to pass because it will allow more governments excuses to by-pass democracy. This is happening in Peru and Ecuador. The two nations will suspend elections due to the virus. Sadly, others will follow.

Fear: Maybe even the Gods...

In ancient times, even more complex societies like Greece, if the heavens displayed unusual signs, the leaders would someone who had spiritual depth. This person would translate the sign - an oracle. No, not the Oracle of Omaha. Anyway, last week we were told that the coronavirus was spreading again. Then, on the news, it mentioned that a comet would be visible in the sky. The Neowise or Panstarrs Comet would be appearing at dusk in the northwest. I looked for it. The third day was the charm. It was quite beautiful with its reflection with the setting sun. The next day the news contained another fearful note. In a Colorado town, people began seeing dead squirrels. An investigation resulted. The findings revealed....please be seated...bubonic plague! 
How the hell could squirrels in a clean, Colorado town, suddenly contract this deadly disease?
More signs...The US had a hurricane hit two states on the same day!
If I was explaining the oracle of the comet with all the bad medical news, and weird signs, it would not be what some ancient king would want to hear. So, I'll just say, the sight of the comet with the setting sun, was a rare and beautiful experience.
P.S. Fleas were the carriers to rats for the spread of the plague in Europe. My suggestion to all pet owners. Give flea protection to your pets, just in case. By the way, fleas are terrible in the South, especially in Florida.

Pay the owner!

Speaking of the Greeks, there is this: An ancient Greek Orthodox Cathedral in Istanbul. It has been a museum for centuries. Why, you ask? To answer, consider this recent point of contention. The Nazi's stole many things from wealthy Jewish families, including art. Lawyers have tracked the pieces and courts have ruled to return the items to descendants of those families. This is right. And if that is right, why should Muslims occupy a church that belonged to the Greek Orthodox Church which is basically a Catholic Church. It was used as a museum so not to inflame old feelings. If the Hagia Sophia is now being used as a mosque, the members should reimburse the Greek Orthodox for the value of the old church taken by force in 1453. Of course, this action would setoff a world litigation rampage. How far back is relevant? The Native Americans claim? The S. American tribes claim? The Palestine claim? On and on, it could go as an endless nightmare. A nice gesture by the Muslim mosque members would be fitting and ease tensions that are present in Greek/Turkey airspace and maritime zones as well as the island of Cyprus.

To the market...

Even in the face of the above issues, the stock market continues to rally. Last week it had more bad news in reports. The Housing Price Index (HPI) came in below expectation as well as the PMI. Nevertheless, the advance/decline line rose to 3-1. The Volatility Index (VIX) closed below its 200-day moving average. In addition, more stocks rose above their 50-day and 200-day moving average. Always keep in mind, especially in this low volume market that the ETFs will buy when it rises and sell when it declines. This accelerates the movement.
Sebastian's piece on gold is being fulfilled. Our Economic Evangelist got a following at the Bank of America. In a report by that bank, it stated, "if the market fall by 20%, which it did, it takes an average of 4-years for the economy to recover." Outlook is not good.
King Dollar is sinking like cement in water as foreign currencies like the EU, Yen and GBP gain strength. This is inflationary for the US.
Another unsolved problem: The president wants schools to open for Fall. Teachers are asking, "There is no money for PPE? How do we do social distancing? Then, there is this aspect. One in five teachers say that they will retire before they come back to the classroom in these conditions. The head of the union is talking strike.

More tit-for-tat...

After the US closed a Chinese consulate office in Houston, China closed one of our embassy offices in their nation.
Boeing took a loan out of the CARES Act. In Europe, an international airlines agency, the IATA  said, "economic stimulus is needed, but without political strings. Things will be slow and hard for global airlines for quite a spell." Then, the EU passed a large stimulus relief package.

Free Fury

In some nice news, a sperm whale got entangled with an abandoned fishnet of the coast of Italy. Italian divers are working to free the animal from the net and save its life. Apparently, the whale realizes the good intent of the divers. In this good sequel to Free Willie, it acts as a reminder that the global community should do something worthwhile like a resolution to clean our oceans. It should not be used like it is as a toilet bowl for nations. Without clean water, we all die! We are seeing the effects in the seas in food chains. Instead of buying votes, both candidates should push a program as a national priority to have clean water as well as clean energy. We have the know how. We lack the resolve.

China: Time to Close the Door

My only regret in writing this piece is to my fellow citizens, namely Chinese-Americans. It could also effect other Asians like Koreans and Japanese-Americans. Sadly, this is due to not knowing enough about our brothers. It is the same syndrome of not knowing your neighbor. Too many Americans are guilty of this avoidance trait. It is one reason why we have racial problems. I would hate to see conflict with our Asian-Americans due to our tension with China. We must always remember that America is an experiment. We are at the forefront in developing Democracy as well as being an immigrant nation. We do not have the luxury of being homogeneous. Until man becomes a better human, we will always have problems with both of our experiments.

Tricky Dicky...

opened the door to China back in 1972. He was the first president to visit the People's Republic of China since it declared itself a new nation in 1949. One of the first international acts by the new government was to steal the atom bomb from the US. So much for US military intelligence and security. Nevertheless, this is China's nature - steal or whatever to advance. Then, they backed their fellow communists in North Korea versus S. Korea and the US led NATO forces in the Korean War. Their Migs fought our pilots over the skies in peninsula combat. I would say that this new nation/government was not very nice. However, time cures many things. Politics came front and center as Nixon needed something for his reelection. Trade with China was his solution. Producers along with their lobbyists were looking to the future. Outsourcing was in its early stages. The anti-union Republicans saw low-cut wages, no regulations and a super, large labor force. The perfect setting for outsourcing. By the way, the democrats did the same thing under Clinton with NAFTA.
We see the sins of greed and the wrongs within capitalism with the coronavirus. We have no supplies as everything is produced in China. Outsourcing has left our nation defenseless as we don't produce anything. We import everything. We need to protect our companies and workers. Globalism is lowering our standard of living. The critics call this "populism." Do they not see homelessness everywhere? The only segment growing in America is poverty. Tariffs is the answer. Unions are needed for workers and we need both for the nation to grow healthy again. Isn't it ironic that tariffs and unions are a way of life everywhere in the world except in the US? However, back to China...

We all know the story from that point in time. China transformed itself from a back wood, agrarian nation into the world's leading export nation and the world's leading manufacturing nation along with a few other titles. No one says the truth. This rapid grow is due to outsourcing by the West, and mainly by the US to keep wages low and maximin profits. This is the negative side of capitalism.
China has the second largest population and also, it is the second largest in land mass. When a nation is this big, there are many contradictions. It is like the analogy of a US policeman. There are two types. There are officers and there are pigs. The Red Communist party in China is the pigs. Many of its people have customs so strange to the West that in relationship to us, they are pigs too. These are the ones who counterfeit merchandise. They copy everything. For example, in China they copied Walmart with Wu Mart. They use iconic brands as labels, but the product is fraud. It is a cheap copy. Then, on the other side, you have quality people who have produced many firsts throughout history in the development of man. The list is too long, but their artistry is masterful like any Michelangelo or Picasso. Sadly, the pigs are in control. We need to distance ourselves from them before things come to blows and the world could end. Both military's have enough psychopaths that will make wearing a virus mask today seem like the good old days. The two will destroy each other and become radio-active nation's that will send whatever is left of the world back to a return of the Dark Ages. What is left of humans will be walking around in a world that is full of poisoned air and one where you will need a preventive, radioactive, nuclear suit. 

First sign...

When the virus first appeared, good Chinses doctors sought to alert the global community and at the same time, seek help. The Chinese government put pressure on them to shut their mouths! They also passed a law along with tracking technology that made anything in the government's view, disturbing was subject to their law: social impact danger. One brave Chinese soul posted, "Power to the people." Chen disappeared.
During the early stages of the virus, a Chinese foreign minister, Zhao Lijian alleged that the US military planted the virus in Wuhan. In spite of this conspiracy theory, everyone knew that a good Chinese doctor from Wuhan was the first to treat his patients with a connection to pneumonia. This is another heroic person who got infected and as a result, he died. However, we see the underbelly of the communist party in action. There were other, more serious signs...

Continual Theft...

Not only does China demand that any company doing business in China must exposed its complete product make-up. It must provide the blueprint to its product. Then, they also must be classified as a Chinese company. This is one phony reason why China produces such a high yearly growth rate. Then, China uses these companies to access into their nation of origin. Their purpose: steal product development, ideas and formulas. When this happened more than one time, the door to China should have been closed, but greed trumps many sins. The Chinese are lucky that JFL was not in charge because he would have put his foot up their ass as he kicked them out the door after they received one more misuse/chance. Recently, a director in the FBI stated, "That over half of all espionage and commercial property theft is in one way or another, related to China.

Recent Signs...

The Chinese ambassador to the UK showed what I have been saying for years about the Red Party. He said, "If you prevent China advancement (referring to Huawei), you risk China becoming hostile."
He says it all. China has advanced as far as they can as a make believe, peaceful, trading nation. Now, they will use fear and pressure to obtain their wants. It should be noted that China has completed their final satellite to establish their own global mapping network. This has military implications. President Trump was the first to shout the dangers of their telecom giant, Huawei. They are in many nations and they have been accused of intellectual theft more than once. Consider if the worst happened: war with China? Huawei could close all communications in your country as they control the door to the internet and phone service. Any nation under that situation would be defenseless. How about this other tidbit? Another Chinese giant social media firm, TikTok. Always keep in mind that Chinese companies are state sponsored, which means that they are owned by the government as opposed to free capitalist companies. The sharing, social app company, was dis-assembled with reverse-engineering by Bangoriol. They discovered that TikTok gathers info to which the Chinese government has access too. Your privacy is a file in a government computer.
It gets worse. When you go to a race track, you look for signs like the appearance of the horse. Better yet, if the horse could speak as in the expression, "From the horses mouth." Now, I give you the words direct from the horses mouth.

Cui Tiankai...

is the Chinese ambassador to the US. When asked of recent criticism of China like in the expansion of islands in the South China Sea, he said, "...people have to fully recognize the realities of today's world." Then, he tried to cover the statement. He added, "America must learn to live with a modernized, strong, prosperous China." In a rebuttal to his comments, it was mentioned that the world court in the Hague ruled in favor of the Philippines about the land/island dispute. Cui said, "China will not participate in such a ruling." There you have it. By the way, the new laws by China would get me arrested for criticizing China. Hope I never set foot in Hong Kong or China or else I'll be singing Humble Pie, "...30 days in the hole..."

Bottom line: China has committed continual theft of intellectual property and product, manipulation of currency, rules and regulations to gain an advantage in trading, lies and suppression like the recent actions with Hong Kong, a history of supporting communist nations against capitalist nations and land grabbing like their current actions in the South China Seas to which all point to one conclusion. We must end all trade with China. They go their way and we go ours. Call things off before they get any worse. Maybe, sometime in the future, we could try again with a better understanding of each other's culture - for now, close the door!