Isms in America

 The dictionary defines an "ism" as advocating a system or denoting an ideology. Politicians will latch onto a popular one and avoid a negative one like the plague. For the public in general, circumstances reflect your attitude. If you are prosperous, keep the status quo. If times are hard, you listen and are easily persuaded. Of course, there are many types of isms. In art, you can question the sanity of cubism, but that is a subject for another day. Today, we will look at Capitalism, Socialism and what I call, Religious or if you are opposed to state and church, Humanism. 

Communism

was once popular in the US. It gained strength during the depression (see above). By now, any fool must realize that the system is BS! How can all be treated equally when party members live above the masses. One only has to look at North Korea and see the hypocrisy. This is dictatorship by totalitarianism. As you can see, isms are everywhere. Time and space in this blog limits the depth of discussion. 

Capitalism

is a cornerstone in the US, but it is not the only force. We administer under democracy. With that said, we have a hybrid of other ideologies and influences. Capitalism in itself, is not a political administration, but a framework for its commerce. Almost all other isms are both an ideology and political system. To me, the freedoms allowed by our society and its money influence, has caused our democracy to be a democracy in name only. We have allowed big money to oppress our citizens who are our workers. From this understanding, I will only use the term, labor. 

From the very beginning of our industrial revolution, producers have used the power of government to suppress labor. Workers have tried unsuccessfully for 100 years to form a union. The continual winning of presidential elections by the Republicans, saw the change. The Democrats suddenly, became the party of labor. After FDR won in 1932, he owed labor. Frances Perkins delivered the benefits that workers receive today (8-hour day, overtime, collective bargaining and unions, unemployment insurance). Ever since then, Republicans have tried ways to counter labor (outsourcing and anti-union rhetoric) are their two favorites. However, during FDRs term, other influences appeared. The cry for old age security. Again, we can thank Perkins. She crafted our social security program. This program comes from the minds of socialists or socialism. 

Republicans...

fought tooth and nail against the program. They repeated their dislike for Medicare which also came from the minds of socialism. As you can conclude, America functions under a limited form of capitalism with strong government influence, especially social leaning programs. There are many others like rent assistance, utility assistance, welfare, SSI and food stamps. Some refer to this as social democracy.

Problem?

Are these programs good? How to pay for them? Where does society go from here? We can start by asking, is anyone against social security or Medicare today? If we agree that these programs do more good than bad, and advocate to continue with them, why not more socialism? Why not spend on any economic slowdown like Keynesian's desire? By the way, this economic idea was rejected around the world when first introduced. Now, everyone follows it.

This is a problem for America today. Free higher education? Forgive all loans to students. I'm against any form of any of these ideas. How about the continuous moratorium on rent? This is basically free rent because the renters will never pay back what they owe. This is excessively wrong!

Capitalism has its plus and minuses like any system. Generally, it works fine and is the reason man has progressed from mud huts to central heat and air. The problem is lack of the connection of religion in our society to the daily actions of its people. We don't follow our religious believes after Sunday. To limit opposition of state and church, I will use the word humanity. We need to respect each other and show our humanities. If an idea is good, then we need to find a way to incorporate it into our society. It does not matter what or where it comes from. Unemployment insurance is a good thing and yet, 32-governors voted to end benefits. They seek to force citizens to accept low-paying, no advancement jobs rather than allow them time to find a new career that provides a livable wage. We have too many weak leaders. We have two political parties who lost their way to do what is best for all Americans. We are heading into bankruptcy. The Federal Reserve should also be included under an ism. It is the ism for bankers, the rich and powerful. They are the reason we have fiat money. They allow negative budgets and the military to spend like a drunken lottery winner. At Evolution, we could knick-pick all day like the state government of Idaho. This Republican state is close to fascism. They changed their state law to suppress change in general. If you wanted to vote on an idea, the old law said that you needed 6% of your local region to get on the ballot. Now, these phonies say, one populated area will be a dictatorship to the rest of the state. This is a lie! Every county has its own elected leader. If enough of these counties feel an idea is oppressive to them, they can vote against it. However, the new law says any idea to get on the ballot needs 6% in every county. This can't be done from a grass root idea to a state organization. Fascism!

Government stimulus in down times sounds great, but Keynesians never say when to pay back debt. No nation even tries. We say, End the Fed!

Odds and Ends: July 2021

We past the mid-point of the year. The new administration is pushing programs or at least, it wants the public to believe it has a plan. The plan is not new. It is the old Democratic playbook. Spend! Then, when the debt looks unmanageable, tax!

Opposition?

The Republicans will throw curve balls at all the spending. You can see that clearly in the number of republican governors who opted out of unemployment benefits for their citizens. 

They say, there is work out there! Public response, Yeah, a no future, service job with minimum pay. The boomer generation took those nowhere, nothing jobs due to our work ethnic. We were wrong. It is not all our fault. The elite have controlled the media and as a result, we had broken responses. We should have stormed the streets to end outsourcing. This is the structural weakness in America. The Republicans will seek to protect this system and their tax shelters. We need to tax the wealthy to balance the budget. We need to put high tariffs on any import. The tax needs to be so high that it will force the producer to return their factory home. 

This is my playbook. It won't happen. It will never happen with our two corrupt political parties. I was amazed that the child credit benefit got included in the last stimulus bill. It will help. There are many sectors within our nation that need to be addressed. Infrastructure is one of them.

WARS: Afghanistan=$2.26 Trillion, Iraq=$1.92 Trillion

What do we got to show for it? The world sees us as a possible catalyst for WWIII and total destruction. This is not said among our allies. It is said among the people of their nations. We squandered our resources. We have lost lives. We have thousands and thousands with disabilities and mental depression. Dear Reader, these were healthy, young men. Some of them sleep on the street. 

The $4.18 trillion could have implemented my water program which would provide fresh, clean drinking water for all our citizens. It would help our farmers, especially in the West who need water. Their wells are running dry and some are polluted. It would have spurred industries like steel, mining, lumber and most of all, gave a livable wage with a future to Americans in every state. By the way, it would also almost eliminate flooding in our nation. The idea could be utilized around the world. It would not have cost as much as we wasted fighting foreign entanglements.

We could have...

stopped the erosion of our crumbling society. Today, it is reported that one in four children in the US have a single parent home. No wonder our kids have no direction. Our poor mothers have to be both a father and mother. Our family life is the worst in the world. The child credit benefit will help, but we should do so much more. Our schools should employ how the classes that they provide will lead to a well paying job. The dots need to be connected. We don't need any more lawyers. We need doctors, nurses, engineers and plumbers!

It seems like everyday a report surfaces about a hack. We all are slammed with dangerous emails and scam robo calls. What does our government do? We allowed the inventors of the internet a free pass. They did not develop the security to go along with the positives. We allow the Facebooks, Googles and Amazons to use our personal info as a money vault. They offer no protections. Our military always talks about our national interest. Listen, you idiots! The above is our national interests.

According to a report by the US civil engineers, there is a water main break in America every "TWO" minutes. And yet, the two parties bicker and BS week after week. This is where money should be spent. The citizens of 1900 America taxed and sacrificed to lay the pipes that gives us our water today in the homes, our toilet system and irrigation. What have we done since then? Nothing, but anti-union, wars and outsourcing of labor. Our standard of living went from number one to not even in the top twenty.

Housing interest deduction should be capped. This is just happening. Take away the ability to keep driving prices higher with tax laws that cover assets of the wealthy with no or little taxation. People cannot afford to break away from rental purgatory. It could get worse as 8-million renters could be evicted at the end of the month. Ask Jimmy Carter for some insight!

Our government is such a poor leader. This is notable in debt. Families use to live on a budget. Keeping up with the Jones and government style of borrowing is corrupting the stability within America. Household debt is $14.6 trillion, a record. Auto loans are also at record levels as well as the price for the average new vehicle at $42,000. You could buy a home for that amount back in the 1970s. This is what our leaders show its citizens: Buy, Spend and Die.

How do we do this?

We allow the Federal Reserve to buy our debt because no one else will. They hide the lie. Another reason to End the Fed!

The Fed has bought $5.29 trillion from the treasury. Biden plans to spend another $1.2 trillion on the infrastructure bill and other $3.7 trillion in other stimulus. Folks, we need more on the infrastructure, but the rest needs the balance of how to pay for it before any further action is taken. If not, we are heading for bankruptcy. We will lose our reserve currency privilege. As a nation, we will become poor like Europe in the Middle Ages. We will have our rich kings (Billionaires) with a village of peasants in city after city and state after state. We are past the first 100 days. We are past the mid-point of another year. What have we to show for it?

What I Meant Was...

-  Say what you mean, mean what you say, and do what you'll say you will do.

- John Lennon 

We all have done it. It happens at family gatherings and parties. Mostly, it happens with a girl that we want to say something to get her attention. However, we let our mouth overload our brain. After the faux pas, we frantically push our cortex to solve the situation. Generally, we are given a second chance. This brings me to the chairman of the Federal Reserve. How many chances does this agency receive? 

History...

shows that they make the wrong call time-after-time. Their partners, the banking system, the elite and misdirected Congress always diffuse the pressure by bringing up other plausible reasons, pertaining to whatever crisis was happening at that point in time. The most recent is Bernanke saying that the financial crisis (2007) is contained. We got this!...We all know what happened then...

He lowered interest rates to nothing. He bought all the stimulus deficits from the Treasury. He expanded the Fed's power (QEs) to include entering into the market place to buy any and all loans, mortgages and overnight lending among banks. The system held. Bernard Bernanke gets accolades. Real Americans lose jobs, homes and standard of living. 

Now...

Jerome Powell told the nation in April that the apparent signs of inflation is "transitory." We showed and told you that the chairman waited as long as he could to mention the word, inflation. In fact, we showed you that lumber prices actually began rising in March of 2020. They would triple. I would almost bet that Powell or a crony will mention that the price of lumber has since crashed. Dear Reader, it is still above its historical level.

What happened? Closed mills reopened. The supply met demand and now, exceeds it. However, we expect the same scenario. When demand slows, those same early closed mills, will close again. Then, we repeat the price rise until they reopen again. The job will turn seasonal like mining in Canada. When winter comes, the mine closes. By the way, building permits are down 5% which doesn't bode well for those mills to remain open.

Back to the Fed...

The data from the government shows that inflation has not subsided. It grew in May and again, in June. In fact, it got even higher and it has moved to other sectors. This is how inflation works. Beside lumber, almost all commodities began rising in price back in 2020. When aluminum cost more, can packaging cost more. The producer raises prices. When there are less workers due to COVID-19, industries produce less. However, if demand is the same, that will still make an imbalance. More demand chasing less product means higher prices. We all saw the disappearance of toilet paper last year. Then, we found out how much of our supply is imported and from China. We could not even find masks to wear. Those problems are in the rear view mirror, but others surfaced. The supply chain disruptions has effected the global community. Inflation is moving to school supplies. Kids will learn two things fast. How to spell inflation, and what it means. School stuff is up 10%.

You want a vaccine? We got one. It goes to money. The price is too high for the poorer nations, but the need is universal. This problem has not been solved or vaccinated away. This will keep supply chains disrupted. 

Enter William Taylor. He is a CEO of an equipment manufacturer. He told Congress last week that the supply chain at every junction has bottlenecks. It begins with ocean containers. Transport prices went from $4K to $18K. When it reaches port, there are no truckers to continue the journey. This too increases prices. He, like us, believe that China has too much control over shipping with its dominant position in exports. This is a root source of the problem. However, it won't change for a long time. Mr. Taylor is not alone. CEOs publicly stated that they are raising prices. They include, Pepsi, a major beverage producer. Fastenal, many industrial uses. Conagra, a major food supplier, Helen of Troy, a beauty firm. Simply Good Foods, maker of granola type products and McCormick, the leader in spices.

Other economist are joining our chorus is believing that inflation will continue until the end of the year like James Knightly, ING chief international economist. The Fed is beginning to feel pressure. They received help from cronies like "Yellen" Yellen who second guessed herself about inflation. She now says it will end soon, but no date! Powell tried to smooth his faux pas by saying, "This is what I meant..." It is possible for inflation to be with us for a few more months, but it will end. Folks, like we said. He is trapped. He cannot raise interest rates to fight inflation because the dollar will implode with such high levels of debt. Remember, interest rates compound debt! Even while this is printed, the Fed buys treasuries. The outlays are up to $5.29T. With numbers like this and more stimulus on the way, one trip up and the gap becomes unserviceable. We have many stumbling points from supply chains to the delta variant. Keep in mind, inflation rotates from industry to sector to consumer.

The stimulus of the child care check will help our economy. It will allow families to weather this storm of rising prices, but other structural problems are surfacing. This is shown in the stock market as there are more down stocks than rising stocks. The Russell 2000 peaked in March. Used car prices are at all-time highs, but the number of actual sales is declining every month. Also, market debt is spiking along with household debt ($14.6T) and auto loans are at record levels as well as prices for new vehicles ($42K). Again, one little trip up and debt becomes unserviceable. There are 8-experts who joined our call for a market pullback and correction. In conclusion, all of the above are added to the many reasons to End the Fed!   Peace.

Boomers vs. Millennials

 - Think not that I am come to send peace on earth: I came not to send peace, but a sword.

- Matthew 10:34

I was always troubled by this scripture. When I came across excess "talk" on the coming generational showdown between Boomers and Millennials, I decided to address it. On thinking and researching info on the subject, the words from the Bible came forth. I think that now I have a handle or a piece of insight on what Jesus was saying. If you stand with him, it is possible to go against what your parents, elders and society believes.  

Unseen Powers

Let's call a spade a spade. Aristocratic beliefs are contrary to democratic beliefs. The elite class is unseen and they hold aristocratic beliefs. They are the ones to dominate our society. You may point to income and earnings of the richest like Gates, Bezos and Buffett. Yes, they exert powerful influence, but the answer is no. 

When I invest, I always look at the charts to see price action and volume. Our two primary political parties are our charts. You can see when one is more powerful than the other, the types of legislation that is passed. With that said, it is not the whole story. The media is controlled by the unseen elite. They dictate to the media, the news to follow and the depth of presentation. Dear Reader, there is no depth. Inside all legislation is the unseen hand of the elite. It is how their corrupt legislation becomes law of the land. It is included with something that is needed like added protection for vehicles against IEDs in the Middle East.

This is not the issue that Adam Smith talked about when he referred to the "unseen hand" as people acting in their own self interest. It is a loose agreement by the very, very rich as what they see as best for the world. It is displayed in the advocates of "One World Order."

These people are really old school aristocrats with old money that has grown exponentially by their influence into global politics, especially in the US. Their playbook is basic. Put a division into society. This distracts society from really addressing what a nation really needs. You can go back in history and see all the conflicts, most notably, Catholics vs. Protestants. Since America did not develop this religious warfare, these powers pushed other conflicts: Settlers vs. Indians, Farmers vs. Open Range, North vs. South, and today, White vs. Black/ Latin, Immigration vs. Domestic. It is West Side Story on a national basis. You delve deeper into a conflict and like an onion, you get layers. Within the White vs. Color, you have the police issue. Historically, the police are thugs for the powerful. They could shoot union people without fear of reprisal. They shot Black people in the same manner, but technology is exposing them. These same powers will attempt to use technology as a weapon for the millennials. Their generation is tech savvy, while the boomers are not. It is a magic trick of misdirection. 

Millennials need quality jobs just like Boomers needed them. The outsourcing of labor began during the Korean War. It helped Japan by logistics. It helped Europe due to Communism. Many boomers were not even born when this occurred. The boomers were educated enough and flexible enough to start the service industry. Then, inflation hit. Everyone suffered. The government's answer was more deficits. It should have been to stop the global community from dumping and killing our manufacturing. Tariffs should have begun. The budget balanced, but no! Instead, the government decided to kill our youth by war. Kids were taken off the street which hid the unemployment picture and sent overseas. The military grew and grew. This along with outsourcing are the two unseen influences by the elite. The US has military presence in over 100 nations. Why? The idiots who run the military have been wrong about every encounter that they said was in our national interest. Their actions in Korea = Wrong! In Vietnam = Wrong! In Iraq = Wrong! In Afghanistan = Wrong!

One other aspect. The militaries mission is to protect America. How are they doing? They allowed the atomic bomb to be stolen and tons of intellectual property. They allowed 9/11 to happen. Hacking is open season in the US and you don't need a license. Total failure!

It is time to put the blame on the military brass. Like a child, they should be seen, but not heard! They have bankrupted our nation. We cut their budget in half. Use that money to create programs to counter the Chinese government who subsidizes all their industries. Forget the WTO. When we pass stimulus, it includes to buy American in all aspects. We need to do better forestation. We cut and replant trees. Lower the cost of lumber and create quality jobs. Build affordable housing! This will also limit wildfires. A win-win idea that no one brings forth. Of course, the elite will try to influence groups like the Sierra Club to oppose tree cutting. One last suggestion. We do the water program that I suggest in my unpublished work. It will provide quality jobs in every state and help our health by providing clean drinking water for all Americans, especially those on reservations.

Frances Perkins...

is one great American that the elite hate. She addressed labor under FDR. Roosevelt gets credit where Perkins did all the work. We have the 8-hour day, collective bargaining, unions and social security due to her. This is what the elite fear. A real American with the values of the middle class and their return to power in our government. This is what they use all their distractions to hide.

Books

There are many tomes on the question of Boomers vs. Millennials. They get published because the writer researched the subject. He showed the publisher that the work will sell as there is a market. What is not known is the people who tell the publisher what to produce and what to reject. For example, one writer that I disagree with is Joseph Sternberg. He says the Boomers pushed our present fiscal policy and monetary policy. He is wrong, and or a liar! Boomers complain about low interest rates (savings bonds, etc.) which is monetary policy. The Fed channels investment money to the market. They do not allow the safe vehicle of government bonds by their policy. Boomers were the first populist to shout against outsourcing, but is not heard. The government leaders in our so-called democracy, do not do the will of the people. They do the will of the party which is controlled by the unseen elite. This is the only truth that everyone needs to know. Citizens are disenfranchised from government. One proof of this is lack of voting. Boomers will not justify the people in Congress. We have no democracy in our democracy! 

This is why I am an Independent. I desire to start a new political party, the Liberty Party.

To begin, we only have two points on the platform. End all foreign entanglements and promote the general welfare by protecting American workers. If we can turn that corner, then we can address some other issues facing our nation. Peace.

The Stupidity of Intimidation

- Stupid is as stupid does.

- Forrest Gump

The past two weeks have had too many incidents in the world where intimidation has been used without the thought of its danger. If one were to breakdown the global to the individual, you can see my point.

A wife has been repeatedly abused by her husband. They separate. She gets a gun for protection. He enters her home. She tells him to leave. He doesn't. She takes out her gun to convince him. There is a moment of indecision. However, her finger is on the trigger. The intimidation is on hold, when suddenly, the gun fires. In the police report, she says she didn't mean to pull the trigger. The gun just went off!

In another report in the news, a child was shot and killed by a stray bullet. Two rivals were shooting at each other, not intending to kill, but to intimidate. In the police report, the suspect said that he didn't mean it. It was an accident.

I think you get the point. However, when powerful rivals with nuclear capability go at it, the stakes of intimidation could be catastrophic. If one were to connect recent news items, the picture gets scary.

Doomsday Clock

I think it just moved to one minute to twelve. We need a world daylight saving time by pushing the clock back by one hour or it is all over!?!

China celebrates the Communist Party. The leader, Xi, declares that China must unify the nation. He refers to Taiwan. Then, in a show of force and intimidation, China flies jet fighters and bombers on the border of Taiwan's air space. A high official declares, "That no one can stop China." Then, China joins Russia in a joint military exercise.

Not to be intimidated by the joint military exercises of China and Russia, India sends 50,000 troops to the Tibetan border. 

The Japanese delegate to the US says that he fears that China and Russia will attack Hawaii. Maybe, Japan is looking for conviction with its alley, the US against the Communist rivals? Later in the same week, Japan joins the Philippines in a dual military exercise. Maybe, they seek to secure another alley under the same objective? Then, deputy prime minister, Taro Aso says that Japan will defend Taiwan if it attacked. Japan will back the US against any aggression from China over Taiwan. This is choosing sides and daring the opposition. Not good by either side.

In what may not appear as related, but I feel is definitely related was the US report on UFOs. Apparently, US security fliers have noticed strange, hypersonic speed UFOs off our coast. At the same time, Russia announces that they have "conquered" hypersonic. This means that they are more advanced than the US and West in airspeed. It is not the first time. Russia has many air records like the first nation in space, Sputnik. Those are not aliens flying off our coasts, but Russian drones. If they can fly faster than our defense, they could drop nuclear bombs on us, Intimidation!

Then, a Russian ship fires at an English ship in the Black Sea. Intimidation!

NATO and Ukraine conduct joint exercises in the same region. Provocation? Intimidation?

President Putin says that even if the English ship was sunk that would not start WWIII. What if the next time, an ego driven officer decides to hit a ship? What if an ego driven officer decides to respond by sinking the intimidating vessel? What police report can prevent a nuclear strike? Hands on a trigger can lead to the gun firing. 

Then, another thing that might not appear as related, but Sebastian feels is definitely related. It is hacking. Hacking gets news as a crime act for money under ransomware. The US asks Russia to look into the matter. Why waste your time? When you ask any Communist nation or rival to look into something that is causing the West harm, there is never any positive or long lasting results.  The best prove is North Korea building nuclear weapons. 

What if these hackers are given government protection and the rewards are split? US sanctions on Russia makes it hard to get greenbacks. Hackers get dollars.

Just last week another serious hack to a Miami firm software firm will have serious repercussions. By attacking the central spine of the firm, the hackers changed the firm's software. The number of businesses will be in the hundreds who will suffer from ransomware. Taking this further, what if these hackers strike everywhere, all at once? Our nation comes to a halt. Nuclear hypersonic drones destroy cities. It appears all is lost for the US except ICBMs destroy Russia, China and North Korea. What is left? The world is already suffering from abuse, pollution, global warming and neglect. Radiation will make unusable the bread basket of the world. Whatever is left of live, it won't be livable.

The arms race was the original intimidation factor, but at least, it did keep the peace. China is also building its own space station. They intend to control the high ground. We better build a new network that is virus and hack free because the writing is on the subway walls with China's "Compliance Issue." Until man learns to live and let live, there is no such thing as Independence Day. Forrest Gump said it best, "Stupid is as stupid does." and "That's all I got to say about that."   Peace.

Odds and Ends: June 2021

- The only thing that is constant, is change.

- Heraclites 

Today, we have reached the halfway point in the year. What do we know? The recovery from the pandemic is not just one vaccine away. The unemployed, as we have mentioned, will be a stumbling block to the recovery. Wall Street, as it always does when it gets cheap money, over estimates earnings and stock evaluations. The American society is fragmented. The Federal Reserve is a phony, lying agency. When will people realize that its purpose is to privatize profits for the banking system and socialize any losses. Their latest BS is on inflation:

Trapped in Purgatory.

The Fed cannot raise interest rates because our debt load is becoming unserviceable. They will keep pointing out aspects on data that inflation is temporary. They will play the "Fed Watch" game. The media will concentrate on the mention of individual words rather than calling the Fed out. Then, of course, they are bought and paid for. They are controlled by the people who get the benefits from the Federal Reserve. We say, "End the Fed!"

Speaking of the Banking System...

The ramifications of Basil III will come into play by the end of the year. This accord raised the asset of gold to equal cash. This is huge. Gold will take off because banks will have to increase their cover on leverage, especially with unallocated gold. This is abstract gold that is traded when in actuality, the contract does not have the physical gold behind any trades. This will result in a short squeeze on gold. This will take some of the manipulation out of gold. It is going up...and big!  

Final Extension...

The Biden administration extended the moratorium on evictions until the end of July. This is it. There will be no more extensions. Do you know what this really means? We predict that 1 September will become "Nomadic Day" in the US. Renters will be moving or find their possessions out on the street. They will be evicted by the millions. This visualization on the news will bring awareness to our high cost of shelter to which the Federal Reserve does not include in their perverse formula for inflation. Do you realize that the refugees in war torn nations like Syria are bundled into tent cities? This sad aspect could be coming to America as cities lack affordable housing, The cheapest answer will be, Tent Cities.

Why, you ask? Because home prices are unaffordable to our wage structure. The average medium price for an existing home in May rose to a record of $350,000. The cost for a new home is off the charts and our space.

Policing...

The result of evictions and other social problems will lead to protests and demonstrations. Does someone in the government foresee this possibility? I say yes because $150 billion of stimulus money that was suppose to go for education is being diverted for police departments. In addition, another $350 billion from the American Rescue Bill is going to states for their police departments. No one mentions new training that is dearly needed as well as better solutions in arrest procedures. Police are not being defunded, but recapitalized!

Good News...

Recent developments concerning supply chains and future delivery are being addressed by one-third of all producers in China. They are waking up to the fact that they operate in a Communist nation. The Red Party just showed its true colors by passing the "Compliance Issue." This act requires all companies to pledge allegiance to China over their nation of origin. These firms are making plans to exit China. Yea! The only negative is most of these firms will relocate to other Asian nations like Vietnam. One of the few things that Trump did right was to lower corporate taxes to motivate companies to return to the US. If Biden wants to balance his budget, he should raise import taxes to convince producers to provide jobs in America. A report by UBS says 76% of US companies are considering moving their operations out of China. Yea! Double, Yea! 

I have mentioned a few companies that we hate like Apple, Amazon and Nike because they give jobs to China and make their profits in America. Well, Nike is moving out of China. Again, Yea! This company is making, big, big money. They bring in one billion a week, Wow! While I'm at it, a shout-out to Black and Decker. They are leaving China for Texas. God Bless Them!

Bad news...

Washington Prime filed for Chapter 11 bankruptcy. It owns 101 malls. This is the third mall retailer to file.

Last Thought...

Need a quality job? Learn pipefitting or welding. The infrastructure bill guarantees that the need will be there in every state and city in the US. Be thankful for this opportunity. Our government rarely does what our nation and citizens really need. This work will be rewarding financially as well as emotionally.  Peace.

$King Dollar

 When something changes its course, it is wise to know why and where it is heading. King Dollar moved two months in two hours last week. Gold dropped over $100. in the same time span. I can hear Vince Lombardi yelling, "What the hell is going on out there?!"

Fibonacci Day

Last Friday was June 18th. or 61/8, a strong Fibonacci level. However, there are other days that match the sequence. So, no! It is not the reason. The reason is...

Inflation!

Even the Fed Chairman had to address it. He admitted its presence, but called it a "transitory" effect of the economy being turned back on after the effects of the pandemic and stimulus. 

Crime Scene...

Consider that the G-7 nations met in the prior week. You have to speculate the discussions. There are many issues. Trade and tariffs are hot topics as well as defense. Who pays? This is the crucial point. As par for the course, it will be the US. Then, the other partners must consider that the US is worse off than their economies, and if not worse off, the US bears the brunt of defense measures. So, the cumulative effects of money printing could hurt the UD dollar and then, all nations suffer through trade.

If one were to step back and observe the dollar in relationship to the Euro and Yen even before the pandemic, it was declining in value. A few nations like Russia and China are attempting to wean their economies off the dollar. The effects of this could have been seen with the dollars value in the basket of currencies. It was declining there too. Then, the US Congress is debating more stimulus. This bodes for more future declines in the value of the dollar. If one were also to compare the dollar to its old "gold" value standard back in 1971, all the money printing would mean bankruptcy. What saved the dollar was the move to "petrol" dollars. Countries had to exchange their currencies to buy US dollars to buy oil and other commodities. In addition, the advent of the Euro to global trading. This union also had to print to protect members like Greece, Spain and Italy as well as others.

Actions by the G-7 went into effect, fast. This is one of the reasons why the dollar rose beyond normal.

Suspect #1...

Did you know that the data for core inflation is due to be released this Friday? The Fed will speak, yet again. This is one way that they control the temperature of the market and economy. They have other ways. The Fed also speaks behind closed doors. They have definitely supported the rise in the value of the dollar. Wall Street has a saying, "Don't fight the Fed!" The Fed also announced a change in policy. They will raise interest rates sooner. They propose two increases. So what! The rate will still be below 1%. Get real! The market overreacted, especially gold, but then again, fiat hates gold. It is the battle of a solid currency that promotes a stable living standard to one of debt with rising inflation and a lower standard of living. Actions speak louder than words. Last week, we saw the actions of the Fed.

We saw their manipulation of the dollar. A rising dollar tames inflation. The ego of the Fed and its chairman will be on display this Friday. They will toast themselves as their view of inflation as transitory. They will appear correct. They are not.

Charts

They are saying the dollar faces strong resistance at 93.50. Last Friday, it closed at 92.21. Dear Reader, even if the dollar breaks though that resistance point, it means nothing. Step aside! Look at the big picture. You will see that even at 96, the dollar will only be back in its consolidation range and at the bottom level at that point. Then, watch and wait! If Congress passes another $6 trillion infrastructure bill, that will amount to over 8000% increase n the money supply. You cannot print with impunity.

Scary thought...Roughly 77% of all the dollars ever printed, were created since last March.

Those new dollars will be worth less than before. This is inflation! This is what banks are for, loans which is debt. Citizens cannot print to cover rising costs. This is how the stealth effects of inflation slowly erodes a standard of living. It is why the US is not even in the top twenty nations in standard of living. The facts support our view. We have a government that is bought by money and its legislators who violate their responsibility under the constitution, "to promote the general welfare." They are only concerned about reelection and their welfare. We have surging crime and media misinformation. We have crumbling infrastructure and slums in all our major cities. We have over 20% in poverty. We have over 20% who are low-wage earners. We have countless millions who live paycheck-to-paycheck. The point that the US is a rich nation is BS! It is ego. It is not reality. 

Other clues...

Copper and lumber recently hit all-time highs. Last week, the two retraced. They only returned to their breakout point. Keep an eye on them, especially, Dr. Copper. China has recently sold its reserves of copper, zinc and aluminum. Does this mean anything? This month, yes. Future? No. They will resupply at a future date. 

Emerging nations...

They will be hurt with a rising dollar. This is exporting inflation. It is not intended, but as the world's reserve currency, this is a fact of life. These smaller economies will pay more for commodities. This will force them to raise prices. When the dollar begins to falter, US citizens will feel more inflation because everything we have is imported and all imports will cost more. Clues will surface if the dollar breaks its recent low of 89.535. With that said...

King Dollar is not looking very good at this point in our history. Our leaders run deficits and the Federal Reserve supports it with debt. We need quality jobs that pay a living wage. We need tariffs to protect companies and workers. Everyone else does it and they all criticize us when we do it. This should be the central point in any discussion or summit. Fair trade that gives all a quality of life. Our nation and the West may have separation of state and church, but if we are Christian nations, we need to act with His teachings.

- Therefore, if anyone is in Christ, he is a new creation. The old has passed away; behold, the new has come.

- 2 Corinthians 5:17

The first step leads back to what we, at Evolution say, "End the Fed!"