Odds and Ends: August 2021

Here we are in September and Powell says his group thinks their policies have strengthen the economy. They are considering reducing asset purchases as a way to let the economy stand on its own. So much, BS!

Dear Reader, the physical year ends with October. The Fed chairman only hints at reducing stimulus. For all practical purposes, the year is over. So, no change. He throws out the thought to show the inflation critics like us at Evolution, that the Fed have all things under control. He has been shown to be wrong on his first two prognostications on inflation. He now says the "transitory" nature of inflation will subside by the end of the year. I promise you this: Here, at Evolution, we will revisit inflation come December.

Bills of Credit

People, those assets purchases by the Federal Reserve are bills of credit. It is also causing another bubble under the radar. The Supreme Court decision in 1888 made the "Full Faith" clause. It means that laws should be not as single states but as one, unified nation. Well, the Fed policy of super low interest rates, has allowed the sellers of junk bonds to lower their offering rate. However, these new low yields do not imply quality. People are buying in search of yield. S&P rating service says a good third of these offerings will be worthless. A lot of people will be hurt by the Fed, but their crony's will deflect the cause to some other plausible BS. 

Better Option

We all have heard the rumors, right from the beginning with the introduction of the virus vaccines. They may weaken overtime. We may need a booster. Well, great and courageous doctors have a legacy and history of doing their own research with little financing and resources.

There is one doctor who inoculated his staff with a pathogen fighter that has proven to be effective with no side effects. The medicine is called, "Ivermectin." None of the staff have become ill. No one seems to attempt to follow the lead of this virus stopper! Maybe Congress has too many personal shares in the three drug companies? Give this doctor credit and give more research to using Ivermectin.

Cascade of Disasters...

is what Niall Ferguson calls our current global situation. Whether it is employment, immigration or the environment, there have been 244 global unrest protests so far in 2021. The IMF says all these actions will lower global GDP. 

On Again, Off Again...

is reference to the moratorium on evictions. The Supreme Court has overturned the Trump/Biden calls for the stopping of evictions due to the virus effects on our economy. This is sad for all sides. The stimulus package provide more than enough money to appease all parties. However, only 10% of the  money has been distributed. There will be 2-million evictions in the next two months. We also have 8-million more who could become victims. We will have higher rents and more homelessness. Why? Because the incomitance of our so-called leaders.

By the way, New York has 65,000 cases waiting to be executed for eviction. They will get more and the outlook is it will take either April or May of 2022 to enact all these filings.

NAFTA, Where are you?

The Mexican government is seeking to renege the new trade agreement in North America. They signed the deal, but now, they say they don't know what they signed?!? They want clarification on terms like what is considered manufactured and assembled? Their spokesman, Luis De la Mora is putting pressure on Biden to appease, especially with all those immigrants sleeping at the border.  

Not a good outlook...

The government reported that over 61% of taxpayers, paid no taxes. We got record deficits that are set to explode even higher will two more stimulus packages and the majority of Americans pay nothing. This type of lunacy will destroy our currency to which will end our reserve status. When or if that day appears, the US will fall to a third rate nation. Stimulus is fine, but it has to pay for itself.

Nice Idea

Meat plants are using prisoners to help with the labor shortage. I just hope that they offer jobs to these people when they are released. Tyson just raised its chicken prices by 40%. Hope, they pass some of this gravy to the new help. Hey, Powell, how does these new prices relate to your "transitory" prediction of inflation? As always, End the Fed!  Peace. 

War-mongers Everywhere

 This week's story is not the withdrawal problem that the Biden administration finds itself. It is the exposing of all the voices that influence our government. And guess what? They are all War-mongers!

It is not the poor veterans who ask why they sacrificed? Although, a deeper review of the question is very valid. It really displays our poor leadership, our poor judgement and most of all, the ego to oppose what our founding fathers believed, to avoid foreign entanglements.

If we review the scorecard, this is the results. We got a push in Korea. We were wrong in Viet Nam. Remember the reasons? The domino effect of Communist China taking all of Southeast Asia? The other BS about introducing democracy to the region? We wasted lives, resources and years for nothing. All we accomplished is to split our nation on beliefs and values. By the way, communist Viet Nam is now one of better trading partners. It also went to war with China. So much for the domino effect? Our media gave it little notice. Corruption to hide the stupidity of the folly by the war-mongers.

Iraq and Afghanistan: another feather in the cap of stupidity. To give you a better perspective in the lack of ability by our military and warmongering leaders, consider the story of Bagram Airfield as a microcosm to the idiots that get to run our nation. The same ones that use solid citizens, our soldiers, as pawns. The same ones who wasted trillions for nothing!

Bagram Airfield...

was a military base in Afghanistan. This is where we flew in and out. This is where we stored our equipment and supplies. We occupied this base for 20 years.

In the middle of the night, not to long ago, we deserted the base. We left countless weapons, supplies and transport worth billions. The BS was the Afghan soldiers would utilize everything in their conflict with the Taliban. Didn't happen! Experts are wrong, again! It gets worse. Biden had already announced the withdrawal. So, logic would say that no matter the outcome within the nation, we had an airfield that was completely under our control and more importantly, secure. The withdrawal should have taken place there. Again, stupid is what stupid does. Do you need more examples?

Other BS...

It is in our national interest. Our national interest should be in protecting our citizens and businesses. Everyday, someone is hacked with no end in sight. Where is the protection? If we didn't waste our lives, resources and money on war, it could have been utilized to improve our standard of living. All the foreign entanglements have resulted in making the US not even in the top 20-nations in standard of living. Our schools and students are getting worse and worse as we allow idiots to control our conversation. We have racial problems. We have kids that are so confused that they do not know what sex they are. We have gun violence on an almost daily occurrence. We have rampart poverty with food insecurity. We have more and more people sleeping in the streets. This is our national interest and as it says in the constitution, "...promote the general welfare."

Then, the "rare" earth minerals? We have been there 20-years with private contractors. The only thing coming out of the country is heroin.

The BS that other nations can not trust our word. This BS changes every four years with any change in government elections. The only that these BS artists should worry about is that we put tariffs on imports that will force outsourcers to come domestic.

The country will be a haven for terrorists? We have more dangers on our home soil due to the government neglecting the will of the people. Besides, the Taliban will worry that Al Qaeda could get too strong and be a political as well as violent force against them. In addition, there is a region in the north of the country that no one controls except the local tribe. The Taliban may declare its Emirate, but this northern tribe will still control this region. The US military did not change control. Al Qaeda is afraid to go near its borders. This is a true reflection of the Middle-East, tribal rule. Our nation should  worry about the problems in the US and let other nations worry about their own, domestic problems.  

So-called Insurrection

If it was an insurrection, the majority of the protestors would have had guns and used them. They would have stayed in the Capital and held it by force. What it really showed was the dissatisfaction that citizens have with our politicians not doing the will of the people. It basically was "acting out." 

We don't need labels like "populism." Trump captured this meme within our citizens. However, he failed to do something good with it. This is why we, at Evolution, advocate a new, third political party, the Liberty Party. Our cornerstone is to promote the general welfare, end all foreign entanglements and raise our standard of living. I like to believe our founding fathers would join, whole-heartedly. 

We have allowed all our corporations to outsource labor and do everything to oppose workers and unions. Idiots made the word "liberal" a curse. What we need is more open mindedness to address all these issues. We need to cut the military budget in half and use the money at home. That is true conservatism. Tell Graham and the Washington Post, Washington Examiner to shut the hell up! Graham only cares opposes because he knows that the South gets military bases. This helps his state economy. Find good jobs with new technology. None of you people are smarter than Madison or Monroe. Give Peace a Chance!

Caveat Emptor

For those of you who went to public school, it means, "Buyer Beware!" As many of you know, we, at Evolution predicted a market correction in June. Didn't happen. Sorry, about that. Our thinking, leading into that calendar date was the market was not realizing what we saw, unemployment. As far as that matrix is concerned, we are on the money. The market was at that time and for the foreseeable future is banking on the Federal Reserve bank to provide low interest and print MONEY. The market has excess greenbacks. This is changing what we think at Evolution.

March 12, 2021

On that evening and into the next morning, the Federal Reserve created one trillion dollars out of thin air. Magic! 

They had a fear concerning the Repo market. Printing of money is their favorite cure.

When your rent or mortgage is due - when the wife nags about should we send the kids to school with the virus and if we do, we need new clothes, sneakers and school stuff - when you wish that you could afford cable to see the new Star Wars or whatever gets your interest - when you need to refill the gas tank and on-and-on, who you gonna call? Ghostbusters!

Well, you would have a better chance than counting on the Fed to do the right thing. Every dollar that is printed, lowers the value of the currency. When you shop and see rising prices, your defense kicks in. You seek to avoid inflation by substitution. But, there is a problem. Everything is going up. Then, you see a coffee or cereal brand that you like with the old price. You grab it. When you get home, you realize that you have been bamboozled! There is less product in the package. This is the old playbook of grocery chains and their suppliers. Dear Reader, it is worse than less product in the box or inflationary prices, everything is a lie!

Chief Bull-Setter

Jerome Powell, chair of the Fed, said recently in response to what he previously said about inflation. He called the "recent" price increases as transitory. That recent date was late February of this year. Now, he expands on his BS because the timeline of his public responses to inflation has already exceeded his projected date. He now gives his transitory timeline until the end of this year. So, my June correction call should be given an equal chance by extending the date to the end of the year. Anyway, Powell goes on to explain what he understands as transitory and inflation. He says, "Transitory does not mean that prices will reverse. What is happening is the restart of the economy."

So much BS! How about a second opinion? Lawrence Lindsey was a Fed governor in the 70s when inflation was out of control. He said recently, (he speaks from experience) "Once you get 3% inflation for six months, it is embedded." We have passed that point. He also talks a lot about supply side economics. He is from that school. The trickle down economy was BS, so I never give these guys trust. However, he is long retired and he is speaking some truth in his old age. As to supply and demand, he says, "Today's Fed only answers demand. They consider unemployment as supply." This is why the government always wants some unemployment. It acts as a check to inflation. The problem is wages. Higher wages cause inflation. History shows that wages never keep up with inflation. When will government leaders learn to back workers because producers own everything anyway? We foresaw the unemployment picture. People are sick and tired of low wages, no benefits and no future.

Transitory and Prices

Powell is speaking out of both sides of his mouth. If prices go up and they do not reverse to the prior lower level, this is inflation. What he fails to admit is inflation is a delusion. Prices appear higher because the value of a currency shrinks. This lowers your standard of living. It takes a long time to return to the equilibrium or in this case, your prior standard of living. The Federal Reserve printing has been shrinking our dollar's value for decades. This is why we have a shrinking middle-class. It explains why people sleep on the street. This year's budget deficit will be 100% of our GDP. Do you know how long it will take to return to a deficit of 5% or less? Don't bother. We don't know or anyone else for that matter. This is why we need to End the Fed!

It is a nice slogan, but it won't happen. The powers-to-be are betting on that horse. They will ride it in the hope that like the 70s, when inflation raged, the nation will move on and live for another day. The thing that puts some doubt into the system is this census fact. Half of the US population today, was born after 1981. They have no knowledge of inflation, currency valuation and the changes to our society by outsourcing of wealth and jobs. They do not understand how wealth is created. They only know that free student loans sound good. That a basic income without work sounds great and free medical for any procedure is a right. They don't understand that our government has usurped its power in the economy to 30%. They, like the military, should be seen, but not heard. We are capitalist in name only. Nothing is transitory. You will never get a new Mustang for $1999 like in 1965. That is no misprint! When prices rise like a stock, they may retrace. They may consolidate for a period of time, but the price increase stays. For example, the market crashes like it did in 2008. A stock falls 50% in value. However, their product still costs the new higher price. They just sell less. This is only one aspect of the many problems in our economy and society.

Wall Street "Expert" Prediction

Even though the stock market has been bullish since the 2009 lows, a Wall St. analyst predicts the bullish trend to last another two decades. Didn't a Federal Reserve Governor say the same thing in early 1929? You betcha! Today, we see things like the following...

Used Sneakers, $1.8 million

This example points to excess money printing and the effects of lower purchasing value. Someone won a auction bid on Kenny West old sneakers. He paid the stupid figure above. Now, he wants to make his purchase of a celebrity collectable into a firm. His plan calls for an IPO. You can buy a piece of a celebrity collectable for $15 a share. This is what happens when markets peak.

Tulips, New World Land, etc.

Idiots in Holland paid a kings ransom for the latest tulip bulb back in the day. In France, citizens, barons and idiots of all classes purchased shares attributed to land in the New World. In both examples, their stock markets were hitting new highs all the time. Neither country ever regained the economic level of that period after their markets crashed. It takes a long time to regain equilibrium. The above sneaker example is just one of many. People are buying stock shares of firms that have big promises, but never made any money. One example off the top of my head, Robinhood (HOOD). The share costs $54 and the firm does not make any money. Go figure? 

Crypto Over $2 Trillion

Just because the fake coin is encrypted for security that does not give it value. All these suckers are doing is creating new billionaires running this bank as opposed to the old ones running the banking industry. This is a poor use of technology and someone will decode the code to steal all your real money that you used to buy this crap.

Trophy Trees

Yes. People are buying old trees to be transplanted into their back yard. The cost is in the millions. A New Jersey diner which never made money is offering an IPO. Penny stocks, to which are notorious as "pump and dump" are trading up 200% of initial offering. There were over 500 IPOs since June. How about digital art? Crap on a printout! One sold for $69 million! Idiot! People are bugging Biden for free student loans, moratorium on rents and mortgages and at the treasury, while they print, they play Sonny and Cher, "The Beat Goes On" all the time.

Truth!

The Fed will not raise interest rates. The 30-year T-Bill yield is 1.93%. Folks, we already are experiencing 5.4% inflation just this year. Can you see the lie of 30 years at less than 2% and over 5% now? If the Fed raised the 10-Year note to just the low end of its historic yield, it would be 4.5%. Our government would have to budget over 30% of its revenue to just service the interest. Everything is a lie! CEOs are cooking the books!  For those of you born after 1981, the market crash in the 70s took 25 years for the equilibrium or return to a previous level.

The only think that history has proven is what is the enemy of state? It was included by our founding fathers in the constitution. The corruption of money on our leaders has caused them to violate the constitution with its reference to our currency. The answer is gold. We now have fiat. So, ask yourself this:

Who would you pick in an economic fantasy draft, Powell or Franklin? Yellen or Jefferson? Get some gold. Sell, and take a profit, if you have some. In any event, get out of the market. Everything is a lie! Peace. 

Climate and Jubilee Year

- ...in the seventh year shall be a sabbath of rest unto the land...

- Leviticus 25: 4

As my readers know, this is an economic and political blog. However, they also know that I believe any good idea should be utilized no matter the source. The old testament is rarely used or mentioned today. The words might even seem foolish if taken literally. We live in a 24/7 world. With that said, consider our world. It is in big trouble in more ways than one, especially our climate.

Back to Biblical Wisdom

Remember these are suppose to be God's words. If you are a pagan or other belief, consider the words from a wise source. As a Gentile, and almost all Christians are, we are not strong on bible history. Consider, this is ancient times. Farming is king. The words found real usage later in history as farmers realized that leaving a field fallow paid big dividends in its future use.

Today

We have rising oceans that are also getting warmer. There are all negatives here. We get floods on islands and coastal areas. We lose food with the death of fish. The water can become contaminated and give off water-borne diseases. This hurts everyone. Not good.

Weather

The summers are getting hotter. This effects health. This hurts farming and then, our food supply. It also adds inflationary costs. It can force huge migration of people. Everyone cannot move to Europe and the US. The climate also sparks wildfires which are getting worse-and-worse all over the planet. It can cause huge increases in insects. These pests eat everything from our food to leaves on trees. They eat our wood and their toxins can cause all of us medical harm. The heat melts the glaciers to which cause the rising sea level. Nothing good here.  

Wildfires

People say that the warming climate is responsible for the many and hotter wildfires. I think one solution is to thin the forest. Create more logging jobs and regrow what is cut. However, as it stands, the smoke from these disasters is affecting everyone's health for the worse. Not good.

Alternative Energy

We hear a lot about the green revolution. Maybe this is our extension of the bible's words for our time? We are giving the land a rest. We take less coal, less oil and strain on the land's resources. We allow the air to cleanse itself. With that said, we are only in the really innings of finding and using other forms of power. 

Electric cars, energy, et al.

Back in the early days of the automobile, steam power was used in making the first cars. Even Ford took years before he perfected his combustion engine. We are in the early days of the transition to electric vehicles. Let's talk truth! Electric cars do not run well in cold weather. There are no charging stations and when you recharge, it takes forever. We need all these advances before the transition can be complete. We need real investment.

The good news is the many other ways we are developing this power from planes to ships and of course, drones. These cameras in the sky have provided many benefits. The usages will grow in time.

Solar

This is another US invention that other nations have reaped the benefits. We need to pass laws in every state that forces builders of edifice's of more than four stories to have solar roofs. In this way, we save energy. We create high paying jobs and develop an industry. However, there is a dirty secret in solar. There is dangerous run-off from weather. Like the electric car, we are also in the early innings of solar. It needs more development. There is room to grow and grow better. This is hope.

Wind Power

Farms in the 1900 century all had windmills. Holland was king and still is today. We all should ask them for guidance in this field. Like the other forms of power mentioned above, this field too is in the early stages. They need better design to swivel with the changing winds in different seasons. They need to be more efficient in many ways. They need lighter and stronger components. They need more investment to make the future a little brighter with another industry of quality jobs and life.

Water

We have serious water problems from polluted aquafers, rivers and wells to drought conditions in the West. My water idea could solve this and more. It could end flooding along many rivers. The Biden infrastructure bill will address many issues, but water needs its own focused investment.

Recycling

The idea started off great, but has lost all of its early hope and steam. No one knows what to recycle as packing has changed along with each region having a different policy. We need a uniformed, national approach along with a new dedication. This is a great idea that needs to be started in school programs as part of science subject, once a uniform approach is finalized. 

Live in Love

All of us need to stop and reflect. Our personal infrastructure needs an overhaul. We are not a homogeneous society. We are an experiment. However, our experiment has been a great success  even with the many bumps along the way. We are hitting rocky ground and the asphalt to smooth out the ride is love. Let's try more patience with each other and it begins with ourselves, live in love.

The bible in the top scripture goes on to mention that in the fiftieth year, everyone should rest - be with family and give thanks, a Jubilee Year. The US is in the 35th anniversary of the seven year format. Let us hope that in years to come, we can celebrate the wisdom of His words and do right with the land. Peace  

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.