Letter to our Government

 Proverbs: He that troubled his own house shall inherit the wind:

As leaders of our government, what are your feelings about the 6th of January? Are you angry? Are you worried? Do you feel the arm of justice is putting all these protestors in jail is the answer? Some of you want precautions like barricade fencing, troops and more police? Stand back! Take a distant look at the Capitol of Democracy? It does not look anything like a free society. 

Back in the day: I could go back to ancient times, but space is limited as well as time. I will glance at a few fallen governments. I think and hope you get my point. Didn't the French aristocrats add a few soldiers to guard the palace? However, they did not look at the root causes of the population's discontent. It was the best of times for the upper class, gents, barons and the like while the worst of times for everyday citizens who suffered with little to none social mobility and food insecurity. When the middle-class joined the movement, you got a REVOLUTION! 

When the monarchy and aristocrats of England needed money for their endless wars because England had interests in other lands rather than worrying about domestic issues, they decided to raise taxes on their North American colony. After all, these colonists keep requesting soldiers to fight Indians and of course, our enemies like the French and Spanish. They should pay for it. The English demanded that the colonists put up their soldiers and feed their soldiers who rarely went out to the frontier to fight. The colonists started their own militia. As more and more middle-class farmers took issue with their English rulers, shots were fired at Lexington. REVOLUTION!

When the Czar moved from palace to palace, he had a personal guard to protect him and his family. He never stopped to see how his citizens were actually living. He was sheltered from bad news by yes-men. When he didn't get his way in some diplomatic negotiation, he sent his poor citizens to war. He squandered the state treasury. When hard times like famine in the farming regions surfaced, he moved to another palace where things were better. Food riots were crushed as dissatisfied trouble makers. When the middle-class joined the movement, you got a REVOLUTION!

In Saigon, the South Viet Nam government saw the city grow due to French money being spent within the area. They did not heed the cries of rural farmers. They offered no ideas to address all their nation. Mao offered democratic ideas to those in rural regions. His problem. He flew under the communists shield. The people liked what the vision of Mao suggested. Our military war-mongers only saw another Communists insurrection. They did not look deeper into the issues. They backed the wrong horse. When more citizens are on the side of opposing government, that government will be replaced. It WAS.

Inside the city of Havana, people had jobs due to tourists and gambling in the capitol. In the rest of the island nation, things were not so good. Low wages, No worker rights! No unions! Slave working conditions. The majority had enough. It had always been this way. They would fight for something new because anything is better than what they have. When more citizens are on the side of opposing government, that government will be replaced. It WAS.

Today, do you see why so many people in the US are dissatisfied with our government, the one you direct? Do you not read to know what other committees are discussing like 25 million children in the US cannot read proficiently? That 65% of 4th grade students do not read at that grade level? That many of these same children suffer food insecurity?

Do you not go to the movies and see how lucky we are to have concerned citizens fight powerful corporations like Erin Brockovich? She gave all to show toxic chemicals in our water out west. In New England, Travolta's movie echoed the same issue with water. Again in New Jersey, Tennessee, Florida, West Virginia, Flint, Michigan and all around our nation. We are suffering toxic dangers with our once pristine water. You let corporations buy you off. Did you forget the Cayuga River in Ohio? It set itself on fire to tell you that companies show a disrespect for everyone. They do not spend to do their job right by protecting the environment and their workers. Poison greed!

How can you say that fighting in foreign entanglements benefits democracy when you have to barricade the capitol with razor barb wire and have troops present along with a large police force? This is not a happy nation. 

You have failed to promote the general welfare. You can see that in a map of the US with dots that reflect a mass shooting. In the short time in 2021 there have been 154 mass shootings of four or more people. In many regions our map is not a dot, but BOLTS!😡 

This is why in the past our nation suffered with outbursts by discontents. Some are evil like the KKK. Some are gangsters like the Outlaws. Some have valued issues like the Michigan Militia. They protested outsourcing. No living wage jobs, no social mobility and no future! Some are right like civil rights and anti war protests like over Viet Nam. Again, go to the movies. A new documentary, "Nomadland" might open your eyes? You can't grade yourself by the stock market. Grade yourself by seeing the collapsing malls and retail stores. Give them an equal playing field by taxing the internet on retail. Stop the BS of party affiliation and conduct yourselves for what is best for the nation. Did any of you read, "Profiles in Courage?"

DRUGS! We have heroin parks littered all around the nation. More needles are present than trees or flowers. Then, there is the opioids. We have people laying on the street. It is getting crowded out there due to homelessness. People are living in cars and RVs because they cannot afford rent. You have allowed the Fed to push debt as the answer when that is the wrong solution. They are destroying our currency. This is seen in the recent tax hikes to excessiveness. In five counties in the US, residential real estate taxes surpass $10,000 per year. People have to sell because they cannot service these excessive taxes. They have to move away from their grandkids and family. It is happening everywhere. Nashville's mayor is touting a tax hike of 34%! On the flip-side is poverty. There are thirteen counties with taxes of $200 because the population is too poor. Do your job as written in the constitution and End the Fed! 

Did you not read Jefferson or any of the founders who wanted a strong currency? This is why there is signs of hopelessness, everywhere. People cannot print money to cover expenses. And then, we have idiots like Schumer who want to forgive all student debt. I will join any group who opposes this idea. Those kids made a choice. If a store owner opens at a location and it fails, this is life. He was free to choose. He does not expect to be forgiven all his debt. This is called RISK!

My only consolation is knowing that more citizens declare themselves as Independents rather than Democrats or Republicans because both of your parties are corrupt! You have some time to address the problems. Tax heavily all corporations who outsource. Tax all imports to promote self-sufficiency and give our citizens hope for the future. Forget the world complaints of protectionism. They have been doing it since the end of WWII. Promote my idea to save our water and invest in our children.  Academics reveal, there is no way the kids of today can do anything that will help our nation tomorrow. When you consider stimulus, try to envision something that will add social mobility. Start thinking! When the next rock is thrown, it might be too late. 

And stop deluding yourselves...

that the US is the world's largest economy. In 2016, China sold 24 million cars. That is 7 million more than out best year. They import the most oil. They are the largest exporter and manufacturer. They lie, cheat and steal, but they are now the largest economy. There are no people laying in their streets. They have jobs, social mobility and now this: They are looking to depose the US dollar as the world's reserve and commodity king. They will offer GOLD to buy oil. If they achieve this last ring in the ladder, the US could fall to a third rate nation. Don't let it happen! Have the balls to end all trade with China. Send the ingrates back to where their ugly Communist Party belongs, in the gutter!

Today, the list of discontent in the US is growing and each group is potentially thousands. If the middle-class joins any of these movements, REVOLUTION?

*Boogaloo Bois, Guardians, Proud Boys, Wolverine Watchmen, Oath Keepers, RAM, 3 Percenters, Neo Nazi's, Vinlanders and Antifa. The names keep changing, but most contain bigotry. I can only hope a true group forms like we, at Evolution put forth. A new political party, the Liberty Party. The cornerstone is protect American workers, our environment and end all foreign entanglements? Peace.

Showdown at High Noon

If you don't know by now, the market is irrational. It can stay that way longer than you can remain solvent. The recent GameStop episodes is a prime example of the above words of wisdom. Stimulus money is working around the nation, but it shows signs of dangerous thinking by our government. Anyone on social security did not receive a check until a communication between the Treasury and the Social Security opened up the list of people collecting that benefit. Still others received a credit card with the face value of the check. So, what's the problem you ask?

The government does not want you to decide or for a better understanding, the government has elected to give you digital money. If everyone received a flat check, the majority would seek to cash it at their bank. Maybe the bank would not have sufficient cash to meet this need. The government knows something that is not right in the banking system and this little change in not receiving a government check is to hide the problem. When you have the fruits of your labor in your hand, you have financial freedom. The way the government is addressing the stimulus is to reduce cash in society and thus, your economic freedom. It is a shame that we cannot call them out into the street to face us with their decisions. To make matters worse, the idiot millennium generation proudly uses their I-phone to pay at registers. It is no wonder that they do not know how to mange their money as they live week-to-week.

It gets worse. China is getting into the digital currency game. We, at Evolution call it a game, but it is Big Brother. The Chinese model will know exactly where every purchase is done, how much and by who. They are controlling you. Just think, if your personal economics is all done by digital and suddenly, the spigot is turned off, you are helpless. You have no money or freedom. It will be too late then. Don't fall for the wealth lure of the bitcoin. Someone controls it and you don't know their end game. By the way, the bitcoin field got more congested as the Chinese are introducing their entry, the e-yuan. One thing to keep in mind. There are wealthy people with influence who are pushing digital currency and these are the same people who desire a One World Government. This could be their choice to see their wishes fulfilled.

Stimulus Economy

We, at Evolution have repeated this fact in recent pieces. It relates to Fed Chair Powell's comments on our economy. He stated that he saw signs of an improving economy with labor participation "reaching" 150 million and unemployment lowered to 6%. He now says he wants to see a string of monthly million new jobs. This does nothing but prove our point. Continue reading. Dear Reader, we have showed you through the 2000 Census report that labor participation for that year was 217 million Americans working. We now have a larger population and less people working. Where did those 57 million people go?😡

The government lies! They can classify them as U-2s, U-6s, whatever. We classify the government as "U" - uninformed and untrustworthy.

One thing that they do know is how to keep the public misinformed. They get all the stats. They can pick and choose what to say, how to say it (spin) and when to say it. Technology has been a gift for them to hide truths like unemployment. Back in the day, everyone could see their neighbors waiting on line at the unemployment office. Today, no offices and no lines. Jobless workers have to have internet to file a claim and if they can't afford Wi-Fi, they can go to the library. Of course, the pandemic has placed another obstacle in that road. Our numbers don't lie. The government knows that. This is why so much stimulus is being passed. 

High Noon is approaching...

Among the many techniques both President Trump and now, Biden used is Executive Order, Requests and Memorandums. These are not laws of the land, but in deference to the position of president, they are honored. Nevertheless, these things cannot go on forever. Individuals and corporations cannot print money to cover costs like mortgages, loans, labor costs, maintenance and taxes like the federal government. This unwritten conflict is coming into view on the street. It made itself known in three states. It centers on the moratorium on evictions. The day President Biden took office, he extended by three months the moratorium that Trump signed. By the way, this is a tell (poker term) on how weak our economy really is and how the economy hangs on government assistance to continue. Anyway, courts have ruled in three states that to continue this process is illegal. The bans are not acts of Congress as reported here in our pieces. There has been six cases nationally with an even 3-3 split. Texas, Ohio and Tennessee could start evicting people. Presently, there are 10 million Americans out of 40 million renters who are behind on rent. The stimulus has given the government a pool of $50 Billion to allocate to housing and rental assistance. The problem is the money could arrive after the eviction notices. Keep in mind that Texas is second in population. Tennessee has 19% renters behind in payments. Memphis alone has 1300 eviction notices by landlords according to Princeton University report. At present, there are many advocates to help tenants like in the state of Washington. That state is passing a law to provide lawyers to help poorer tenants in their fight against eviction. And yet, the market refuses to take into account these and other dangerous signs. The sun is almost directly overhead. A showdown is coming.

Try to stay out of the gunfight with stray bullets. Peace. 

Dr. Copper: Not Taking Appointments.

Sometimes in our busy lives, we miss some news or the importance of sound bytes in the news. This aspect of life got compounded by the pandemic. The market uses other people's money and thus, they can gamble on future outlook. In this vein, the market is rallying with new records in all the indexes. Why, you ask?

You know that unemployment is high, although the Fed and government say it fell to 6% last week. This is an obvious feel good lie to hide the fact that only 150 million Americans have a job. Back in 2000 with a lower population, we had employment of over 217 million Americans. This is why we say that the real unemployment percentage is 26%. Nevertheless, the market has the final say and it is saying that the economy will recover and especially, commodities. They are looking at stimulus as the catalyst. 

No matter how the Fed and the government BS their way through the rising cost of commodities, this is inflation. Dear Reader, it will be off the charts for the red metal in the very near future. By the way, the Federal Reserve claimed that inflation for February was under their 2% target at 1.5%. So much BS! The rise in gasoline by itself was greater than 1.5%....Meanwhile,

Goldman Sachs predicts another bull market in commodities like the supper cycle of 2003. They have many streams of evidence to reach that conclusion. For example, in the US, 17-million cars sold in a year is considered a record year. We all know that we are in a transition period from combustion engines to electric. The market realizes in order for this change-over to be completed, copper production will need to be greatly expanded. By how much, you ask? The answer is unbelievable. Back to car sales. In China, car sales for 2016 was 28-million! The Chinese government wants the country to transition to all-electric. However, they will need the red metal as electric cars use twice as much as combustion. Now, this is the mind blowing point. If China goes ahead with its designs for all-electric vehicles, they will consume all the copper production for 119 years!...and that is copper only for cars and only in China. It is no wonder that the price for raw copper has doubled from $2 to $4 in the last six months. This is why the Doctor is not taking appointments. His calendar is full. This is super inflationary, but the anti-gold, fiat forces have put a lid on gold...for now. 

What are the other points of evidence, you ask? The list is long and in harmony. I will use a selection of commodities from various firms. The prices reflect the range for the last six months and the lows was six months ago and the highs are today.

How about steel? US Steel went from $8 to touch $26.

How about iron ore? Cliffs went from $7 to touch $20.

Alcoa Aluminum (AA) went from $12 to touch $34. In agriculture, you need fertilizer. Mosaic (MOS) went from $16 to touch $35 and is now, $31. Speaking of agriculture, how about the grains? The price of corn rose from $400 to the present $559. This is a huge movement! The price of soybeans also rose. It went from $975 to $1262...Then, there is the record setting surge in lumber. Builders expect pent up demand to take housing to new records. This is reflected in wood. The price of lumber has added almost $20,000 to the cost for a new home. Lumber itself rose from $450 to $1012. Triple!!!

Climate Problem

Almost all the copper producing nations are suffering from drought. Water shortage is limiting nations to expand copper and mining production even though they know the demand is there. The countries are Peru, Australia, S. Africa, Chile and Mongolia. One important aspect of this list is that Chile produces 30% of the world's supply of copper. 

3rd. Stimulus Plan

That is no typo. Biden has another plan called, "Clean Energy Revolution." In this package Biden wants to build out an electric charging stations along the highways. One of the leading manufacturers in charging stations is Charge Pont. They will benefit if this plans gets the go ahead and, of course, Dr. Copper. Peace.

Odds and Ends: March 2021

We begin where we left off. The Federal Reserve and the government reported that inflation came in at 1.5% for February and below its 2% target. Can you now see that they lack any creditability? 

Want a second opinion?

The news of Archegos Capital Management blowing up was rumored in the Asian market. It is why the Chinese index has been falling. Archegos had many over-leveraged Chinese stocks. The private hedge fund gave the market time to get ready for Monday's margin calls. You want to see destruction? Check out Viacom or Baidu.

Those stocks will not be the only causalities. The hedge fund also had the Derivatives of Financial Mass Destruction. The repercussions will be slow to unravel, but they will. The sin here is how much of taxpayers money will be used to correct the greed of banks over-leveraging. This is why banks want the Federal Reserve. These bastards want the profits (privatize) and socialize (taxpayer) the losses. The question is how much money will the Fed provide the firm and market? This is the truth of the role of the Fed. This is why we say, "End the Fed!" Big banks like Nomura (loss of $2B) and Credit Suisse are already giving out earnings warnings. We see the Arcgegos causing damage somewhere between Long Term Capital Management and Lehman.

The last unemployment number for March was 684K. The "market" said that it was less than forecast. This sent the indexes to new highs. This is what we see. The total claims for the month was 2.9 million. The claims for the last thirteen months reaches 39 million. This points to a real unemployment level of over 26%. This market is do for a rude awakening.

One aspect that will refute the markets belief in a "V" shape recovery is this fact. Restaurant re-employment will be hard due to the debt position of the industry: 44% have over 100K in debt.

The Biden stimulus to people is much needed when you consider this takeaway from the 2020 Census. The number of citizens was 17-million who reported on the form that they depended on food banks to live.

Space Hurricane

With the seasonal hurricane period quickly approaching along with terrible weather this past winter and spring, have you ever heard of a "Space Hurricane?" Some "experts" say that this could be the first climate change appearance. Scientists observed this phenomenon over the North Pole in 2014 (they are so slow to announce news). Anyway, the disruption could hurt cell and satellite communications. We think that there will be other damage too, but the scientist cannot answer that question at this time.

Disturbing Thought

The EU "experts" say that nuclear power should be labeled under green or alternative energy. Yeah, the rods contaminate for a thousand years, but then, it is safe.

Another disturbing point

Visa is accepting bitcoins in financial transactions. They will accept an unknown entity that is controlled by unknowns and at the same time, they won't allow precious metals as legal tender.

Say It Ain't So!

It is bad enough that greedy, anti-union producers moved production offshore, but now, 3,500 US firms are petitioning the government to stop tariffs on China, especially car parts. We say, increase the tariffs to a point where these bums are forced to return production back into the US. Here is a sample list.        *Costco, *Tesla, *Coca-Cola, *Pepsi, *Beyond Meat, * Starbucks, *JP Morgan Chase, * Goldman Sacks, *Walmart, *American Express, *GM, *Yum, *Impossible Foods and even Exxon.

By the way, China is the world's largest in auto sales and oil importer. They have the most people working and their dictatorship, Communist Party is still ungrateful for the US and West from taking them from peasants status to the world's leading economy. US car sales fell last year (16%) and this year looks no better. The worst in sales is Cadillac XTS. It is down 95%! Ouch!

In a related report by NBC, shipping carriers are refusing to export US agriculture products. This violates the 1984 Shipping Act. Carrier exports were down in 2019 and even worse in 2020. Meanwhile, China had a record year in 2020 despite the pandemic. It is why we say that they moved to the number one spot. The only good news to the Suez Canal blockage is no US agricultural products were on board. Back to China, their currency should be hit hard with a higher evaluation to allow a fairer playing field. Meanwhile, King Dollar is rising like the US had a record year. Go figure!

Having Trouble Sleeping?

We do. Many people do not get the required (for health) of at least 7-hours worth of sleep each night. The bean counters at Google, Amazon, Facebook and Apple want to capitalize on your sleep time. This is a nightmare that stays with you after you awake. One firm, (HAPBF) Haphee has a device that you wear to "help" you sleep. Google's entry into the field will track your dreams and "sleep talk" to compile even more about you. They are seeking to make the word privacy as evil as liberal. 

Last Word

Watch the VIX. It closed on Friday below its 50-day moving average at 18.86. If it continues under 24.92, this crazy market will continue to rally. Facebook seems to be getting a lot of the new money. It has a high volume high which will be tested and the stock could rise to 534. Apple shows the same charts and Microsoft has been one of the best stocks the last two years.

Have a wonderful Easter. He showed us from the cross. We won't be called to that extreme act of love, However, to master love we must practice love. We are not a homogeneous nation, so try to remember to have patience with each other. If we can improve on that aspect, we are fulfilling the message  and showing thanks for all God's blessings  Peace.

Unemployment : The Truth

In the last few weeks, the market and the public have become aware of inflation. The Federal Reserve even admitted that for the first time in decades, it rose above its 2% target. It reached 3% in food and gasoline is up almost $1 from this time last year. Of course, the Fed said that this is only a temporary spike. The usual mouthpieces, as if they had any creditability, joined the chorus. Screaming Yellen backed Powell on a word-for-word basis. The market began falling as fears over President Biden's talk of tax increases as well as the spike in the 10-year Treasury came into focus. 

What we see...

JFL was going to do a piece on gold, but the consensus here at Evolution pointed to the weekly charts. Although gold has broken its down trendline on a daily chart, the weekly chart shows consolidation. We will look into it again in two weeks. Instead, Sebastian bought up this quote by chairman Powell, "Unemployment fell to 6.2% in February. The GDP will rise to 6.5%." This reminds me of the BS artist, Bernanke who stated at the beginning of the financial crisis of 2008 that the Fed has the situation under control." Do you remember that?

The Fed chairman is lying through his teeth. Sebastian checked the labor participation rate. It keeps falling. It is down to 61.4%. It is probably even lower. If you didn't know the participation rate in 2000, it was 67.3%. Where did all those jobs go? They died because our government does not protect our workers like last week when Ford said it is moving production from Ohio to Mexico. By the way, the Fed said last year that by this time the participation rate would be at 63%. Why doesn't any reporters call him or the Fed out on their many mistakes? Here are the three unemployment claims for the month of March. *4 Mar=745K, *11 Mar=712K and *18 Mar=770K. If you check the number of claims on a monthly basis, it averages between three and four million per month. Sebastian used the lower number. No matter how you do it, the bottom line is 36 million workers are out of work over the last twelve months. The Fed says the number of unemployed dropped below 10 million last month when it compiled its data. It went on to say that the unemployment rate is down to 6.2%. We say that is a lie and BS!  

US Census 2000...

showed that there were 217.2 million Americans employed. Powell last week revealed the labor force "reached" 150.2 million. Can you see the lie, the BS?

67,000,000 million fewer workers. Where are they?

How about this aspect? In the year 2000, the US population was 281 million. Today, we are over 320 million. We have more people and less working. Where are they, you ask? They are living with their parents or grandparents. They are collecting food stamps (43-million as of July 2020) and lining up at food banks. They are collecting unemployment and some are perpetual students who now WANT their debt forgiven.

Real Unemployment is is 26%. You read it right!

This spells trouble in River City or any other place. How about his other claim that our GDP will rise to 6.5%? Sebastian doubts it and even if Powell is correct and Sebastian is wrong, consider hourly employment? Very few Americans receive a 40-hour work week. The new normal is 34 hours. It is no wonder that the rumor of another stimulus plan (which was already in the works) will include more money for families and raising the minimum wage level. Does anyone understand our responsibility of being the world's reserve currency? Our debt percentage is growing. At present, it is already at 86.9% of GDP. When the infrastructure stimulus under Build Back Better is announced, we will surpass 100%. The world is watching and China is chopping at the bits. It wants the title. We know it has the ego and the Communist Party is evil enough to achieve its goal doing anything and everything that they can. At evolution, we already believe that China is the world's largest economy. If we lose our reserve status of our dollar, the US could fall to third world level overnight. You can thank the Fed for destroying the dollar and paid off politicians for putting corporation profits before the well being of American workers, society and starting the Federal Reserve and ending our gold standard currency. Maybe at some point you will realize these truths and join our meme, End the Fed!

Inflation: Shelter

Last week Evolution gave you proof of the Fed's lies on inflation with food prices. This week we will attempt to show you the second piece in necessities. Energy is the third component. There is no need to write about the oil commodity. You can it see on a daily basis as gasoline is up almost one dollar from this time last year. However, Evolution uses the three components to determine if inflation is present. Dear Reader, it is not only present, it is rising to dangerous levels. The Federal Reserve, by the way, does not include in its matrix formula for inflation, these three necessities. We need to eat everyday. We need shelter and fuel for energy, whether heat or air. We don't buy a computer everyday and whatever other nonsense the Fed's utilizes in their formula.

During last year...

Sebastian wrote a piece on the rental market with a national view. He showed how high rents have risen for tenants who seek a one-bedroom apartment. In many large cities like New York, Seattle and San Francisco as well as other locations, renters need two or more paychecks to meet that monthly obligation. Shelter, particularly, rentals does not see a lot of ink these days. There are two reasons. The first you know, is the pandemic. The second is the eviction moratorium that both President Trump and Biden have requested. This moratorium also applies to mortgages. Renters have not been paying their lease obligation. Landlords are tacking on late fees to the missed months that rent was due. So, whenever this moratorium is ended or challenged in court, a day of reckoning is coming. We, at Evolution predict that new leases will rise dramatically. Many people will be displaced, sleeping in cars or joining the homeless society. By the way, sadly, the second and third biggest growths in the US is poverty and homelessness. You should know the first. It has been the leader ever since Reagan - DEBT  

Landlords

are holding an empty bag at the moment. There are 40 million renters in America. There is an even divide between large real estate firms and small or single person rental owners. The president of the National Apartment Association, Pinnegar says this pandemic and moratorium as been particularly tough for the smalltime landlord. Many are not getting rents on their property, but they still have a mortgage on the real estate. Banks may not be able to foreclose on them, but late fees are higher than lease fees and these small landlords also face a day of reckoning when the moratorium is lifted.

Renters...

owe an estimated $30 Billion to $70 Billion in back rent according to a report in December 2020. Now, it is worse. The last stimulus provided $25 Billion for renters to meet their obligation. President Biden has bought more time with his new stimulus as well as his moratorium. His plan will give another $25- B for rents, $5-B for utilities and another$5-B for homelessness. Dear Reader, a government subsidized economy is unsustainable. Nevertheless, the government is holding by a thin thread, our economy. Even with this new dole, it is estimated that there are still 10 million renters who are behind in payments. The rental hole will continue to get deeper as long as the virus wreaks havoc on the economy.

Lumber...

is another commodity that does not gather any ink. We include it because it is a closely related aspect. The price is at all-time highs. We mention wood because whether new rentals are being built or housing, it is a prime component. Builders are aware and they realize that there is a shortage of lumber due to the pandemic. Builders also see Millennials entering the market. It is a major reason why builders added the highest new construction last year that touched a 14-year high. By the way, due to the lumber shortage, the cost for wood has added $14,000 to the price of a new home. That medium price for a new home in a Federal Reserve report is $346,400. The medium price for an existing home is $286,351. If you do the math, if workers were to realize the $15 an hour threshold, they could afford to purchase an existing home. At present, JFL reminds us in a report by CBS, that 71% of Americans cannot afford a home with their present wages. The battle to see if we become a rental nation or return to the American Dream with home ownership is at hand. It is a battle between a living wage and housing inflation.  According to Jalbeit, a senior economist at Fastmarket RISI, he believes the cost for lumber will hold up well into the second half of 2021.

There you have it. The market and the public will feel the effects of housing the moment the moratorium is lifted. Can anyone say another stimulus just before the mid-term elections? We do. Hosing is a necessity. It reveals heavy inflationary costs at present and into the future. Just another case for the meme, End the Fed!   Peace.  

PS: A special thought for today from Joe Devlin, an Irish rebel character on Columbo. "Justice for the free. Let each man be paid in full. That's enough for me."

 HAPPY ST. PATRICK'S DAY!

Inflation: Food

There was a lot of noise in the past two weeks with the 10-year bill rising. Screaming Yellen claimed it showed the economy improving while President Biden said it was a cry for his stimulus plan. The truth is that rising rates is a vehicle to fight inflation. Of course, we have a Federal Reserve that says inflation never even rises to its 2% goal. The deeper truth is that they all lie!

1.57% = 10-Year Treasury

Really? You mean in ten years the costs to the economy will be less than 1.57%? When you think and read it, you can see the lie and BS! Think what rent was 10-years ago? How about the price of a home, a car, whatever? Another truth is all these interest rates are results of the machinations of a crooked system that is the Federal Reserve. The status quo is fighting to keep the game going because it is in their best interest. Screaming Yellen lies about debt, too. She says the mountain of US debt is small when compared to the economy. She uses a manipulated GDP ratio to debt. She does not admit that certain debt which should be included is excluded like the costs for pollution. The government never talks about real issues unless it is in pork barrel legislation like the future infrastructure bill - Build Back Better. That's right, Dear Reader, we will be getting another stimulus plan along with the fight to raise the minimum wage and other issues to buy votes. I'm not saying there is no truth or need for infrastructure. Will it be honest that is given to all states, both red and blue or to get votes for the mid-term elections? Somewhere in the sandwich of bills lies the value of the US dollar. It too, has been rising while gold has been falling. Why, you ask? We, at Evolution have told you many times, the status quo is for fiat and debt. Gold is for stable prices and a better standard of living with limited debt. The battle will rage, but if real money ever begins to flow into gold, change will come. This reality will sink into the consciousness when this year's debt total grows and grows. It is getting to a point where it cannot be repaid. When that enters the news picture, the doubts will surface about the US dollar being the world's reserve currency. If we lose that gift, we are doomed to suffer unbelievable inflation.

Around the World

Meanwhile, food prices have been not just been rising, but surging in the global community. In Indonesia, tofu, a favorite, is up 30%. In Brazil, turtle beans, a staple, is up 54%. In Russia, the cost for sugar rose 61%. In the US, people are lining up at food banks due to food insecurity. In the UK, the Trussell Trust handed out 2,600 food parcels for children. The numbers are telling. A US report has 13.2 million people who do not have enough money to purchase food. This is up 30% since 2018. Sebastian believes this count is well short of the reality. He gets a solid aspect to his belief from the US Census. It was revealed that 17 million Americans reported on the form that they are suffering from food insecurity and that they relied on food banks to eat. In addition, you can concur when you realize that people have not been paying their rent and being protected by the moratorium on evictions, that they are using their money to eat. Another report shows US food prices have risen by 3% in 2020. The report said the rise was due to poor weather, supply chain problems and increase demand due to the virus. Also, within the report was this: sunflower seeds up over 150%. Corn rose over 120%. Soybeans rose 100%. Then, there are related aspects like the cost to package. Cardboard is up and food giants like General Mills and Birds Eye are planning price increases this year to pass on their extra costs. These price increases extend to pet food. Blue Buffalo is raising prices. Of course, the old playbook will be dusted and taking out of the drawer. Consumers will get a smaller box or less content to mask the price which will not rise, the old "Shrinkflation." Another study showed that 2,529 products were made smaller between 2012 and 2017. Back to the worldview. The UK will get higher prices due to Brexit. We all will see new products that are fake like phony meat or government restrictions on exports to keep domestic supply. Then, there is other problems that need to be addressed like the many outbreaks of e-coli in greens. Growers will need to spend to fix this problem. Producers have to remedy their canning as metal filings and other contaminates are bringing lawsuits. All these and other problems will add costs to food. Keep in mind that food is only one-third of necessities. The price of oil has doubled since November 2020 and shelter will explode from landlords as soon as the moratorium ends. Meanwhile, whatever you buy or observe food prices, you will recall Evolution's cry of fowl (play on words) by government rates with inflation.1.57%, my ass! 👎😖😠      Peace