The last time that I spoke about gold was in my 20th of May piece. The main point that I stressed was the trend. It was up. It still is. Not only that, the continuous contract reveals more volume which means new buyers. Everyone has the knowledge that the Federal Reserve will continue its excessive printing. It is putting the dollar in jeopardy, especially with its role as the world's reserve currency.
Cornerstone point
The Fed, like I mentioned in that previous piece, took 94 years to reach the first trillion in printing. Since the financial crisis of 2008, they have printed another $9 trillion or 10x the previous amount. They are destroying our currency, standard of living and our future economic welfare. Their existence and use of fiat money for our currency is in violation of the constitution. Since nothing will change by either of our government's political parties, to end the power or reign of the Federal Reserve, we can take confidence with our trust in the metal that never tarnishes.
Golden Outlook
Gold ended the second quarter at $1800 on good contract volume. Silver failed to break its previous high that touched $19, however it broke $18 and it has held price at that level. There are other indicators that are even more promising.
HUI and XAU...
are the two gold indexes. They are both making new highs. Using Fibonacci levels, the price of gold will break its all-time high of $1910 set in 2008. In my previous piece, Fibonacci ratio called for gold to reach $1856 in the future. Dear Reader, the future is here. Gold futures already hit that price projection last week. It gets more crazy when I used the two gold indexes and Fibonacci to project future prices. There is no resistance coming in the HUI which closed last week at 291. It could blast all the way to, are you ready for this? = 529. Yowzah! The XAU could run from 127 all the way to 196. Super Duper!
It gets better...
The ETF for gold mining stocks is GDX. At present, it is around $37. It is projected to rise to $52. This is a huge move and it will raise the mining stocks in its fund like AEM and WPM. And a rising tide lifts all boats.
Need a 2cd opinion?
In a report by A. Nalavi, of MKS, SA, says if $1790 price of gold holds, the rally will blast through $1807. Hey, buddy, it already has.
In another report by Bernard Dahdah of Natixis, the analyst has increased his price projection for gold to $1950 by the second quarter in 2021. However, he does not feel the price will hold and the metal will slowly decline from that point. He could be right as the banking industry is anti-gold and they will attack the metal.
By the way, here at Evolution, we see gold breaking its old high of $1910 and reach $1940. At that point we need to see the volume in the trend. Gold, like Dahdah sees, could temporarily run out of gas.
Nevertheless, the Fed "put" will turn out to be the foundation for gold. The Fed is being forced to keep printing from pressures by the president and Congress. It has even greater pressure in the hope that the bond market won't implode. The other sad truth and another uplift for gold is the basic building block of government borrowing. When rates are normal, people prefer to save rather than risking their hard earned money in the stock market. With low rates and negative yield, savers are forced to turn to the market. The Fed over-borrows. When you look at the aspect of total savings that the Fed at one time utilized, the savings rate was 75% in ratio to the GDP. Now, it is 1.4% of GDP.
Four gold stocks we like...
My list takes in the point that we all have different levels to invest. I offer gold miners from low entry price and up.
1) Argonaut Gold (ARNGF) A Canadian miner to which is a very important point as socialist government's could take over a free market mine. A $1.75 - $1.80 would be a good entry point. The company has a strong pipeline of mines to develop. It is already a mid-tier producing firm.
2) Newcrest Mining (NCMGY) is an Australian miner. It has strong production and $21 would be a good entry level. It pays a dividend. Only negative is its big mine with a robust outlook, but not a reliable government. This mine is in another nation.
3) Wheaton Precious Metal (WPM) This is a great streaming gold company. It has a dividend and a good reinvestment dividend program. Any pullback to $40 would be ideal.
4) Agnico-Eagle Mine (AEM) has a history of solid performance. It pays a dividend. $60 would be a good entry point in this rising gold price market.
Wednesday, July 8, 2020
Wednesday, July 1, 2020
When It Rains, It Pours
Ever hear the expression, "Misery loves company?" For those among you that live in the Southeastern part of the US, you know this. You don't just get precipitation, you get buckets of rain. Sadly, I see an analogy to the US economy. It is raining on us with the virus and it will pour, when the news of the CLOs hits the clouds.
Back before the recession of 2008, there were many writers, including myself, who asked the question, "Who can afford to buy these houses for $400,000?" The thought continued, "How can I get a job that qualifies for such a mortgage?" There were other people who realized the same thing except that they happened to be in financing. They had play money to bet against the housing phenomena. They made billions when the flaws became known. I didn't lose a home. How did you do?
Houston, we got a problem...
We all know now about the dangers to the economy that were caused by the coronavirus. The hope is in a vaccine. In the meantime, the prayers are for the flu to pass and the economy to return to normal. You can count me with those thoughts. However, here at Evolution, we got a new writer. He called the down day that occurred last Friday on Wednesday of that week. He sees a new problem that will take time to unfold. It is like the articles that I wrote in 2006 about the rising cost of housing. It took two years, but the crash happened. We call him, "The Economic Evangelist." He has deep insights. This is the message that he sent to Houston.
CLOs...
You should all know by now what the letters, CDOs mean? They were the root source to the banking crisis behind the great recession of 2008. People were getting mortgages based on NINJA Loans (no income, no job and no assets). Today, banking is quietly changing clients. They have left the individual and housing. They have turned to business. Neither the Republicans nor the Democrats offer any knowledge on the issue or subject. This is still another reason why I say that both of our political parties are corrupt. You can see this with the latest headlines, "Black Lives Matter." The two parties never offered any suggestions on police brutality or procedures. Now, they both offer plans. Can you see my point, my view?.
Well, Dear Reader, our new writer sees a new danger brewing. Before we continue, a quick recap on how banks operate. The corruption covers many aspects. CDOs refer to collateral debt obligations. These were the NINJA Loans. Banks got the rating services to give them their AAA rating - their best level. Then, they sold these loans as safe vehicles that offer a yield. The banks give the rating services a job. The service gives their employer a favorable response and perhaps, more work. Did you know that 13,000 AAA rated CDOs defaulted during the crisis? That is all you really need to know to continue. Dodd-Frank was passed to force banks into safer actions with taxpayers deposits. The idea of "stress" tests added to the peace of mind for everyone except the greedy nature of the banking industry. The industry knows the Fed has their backs. They can keep all the profits and socialize all the losses. This is what they are now doing.
Off the books
Ever have a job off the books, meaning no taxes? Fix the neighbor's car on Saturday morning. He pays you directly. No big deal. LBJ was so corrupt that he kept the cost of the Viet Nam war off the books. Politicians still do it. Our nation has trillions in unknown debt. It will surface some day and it has to be repaid. Enough on that. Anyway, banks circumvented Dodd-Frank. They keep certain risky loans off their books in bundles that they farm out. They also hide these so-called assets like Enron hid off the books companies with shell names. The banking industry is following the Enron playbook. They classify these assets in structures called, "Variable Interest Entities."
A report in the Atlantic by Frank Partnoy, says, "Wells Fargo has more than $1 trillion of VIE assets off the books.
So, what are these VIE assets, you ask? They are loans to shaky companies like J.C. Penny, Men's Wearhouse, etc. The 2008 crisis had shaky loans to home buyers and now, corporations that own malls, restaurants and retail are the users of these loans. They are called, Collateral Loan Obligations.
Do the math
The housing recession of 2008 had $640 billion of bad mortgages in CDOs. Today, CLOs have $880 billion in shaky loans. Business debt alone stands at 78% of GDP. The Fed is the guilty source of all this borrowing due to extra low interest rates. It gets worse. Two economist from the Federal Reserve have reported that US depository institutions and their holding companies own more than $110 billion of CLOs issued out of the Cayman Islands. This is so wrong. The Fed constantly seeks to expand its power and it constantly abuses its power. You heard that Wirecard cannot find $2 billion? The Financial Stability Board, a monitor of global systems, reported that $10 billion of CLOs are unaccounted for. This is why we call him the, "Economic Evangelist."
What he suggests...
Banks should be regulated like utilities. They provide a functions for business and citizens. They should not be allowed to venture beyond this format and of course, End the Fed!
Back before the recession of 2008, there were many writers, including myself, who asked the question, "Who can afford to buy these houses for $400,000?" The thought continued, "How can I get a job that qualifies for such a mortgage?" There were other people who realized the same thing except that they happened to be in financing. They had play money to bet against the housing phenomena. They made billions when the flaws became known. I didn't lose a home. How did you do?
Houston, we got a problem...
We all know now about the dangers to the economy that were caused by the coronavirus. The hope is in a vaccine. In the meantime, the prayers are for the flu to pass and the economy to return to normal. You can count me with those thoughts. However, here at Evolution, we got a new writer. He called the down day that occurred last Friday on Wednesday of that week. He sees a new problem that will take time to unfold. It is like the articles that I wrote in 2006 about the rising cost of housing. It took two years, but the crash happened. We call him, "The Economic Evangelist." He has deep insights. This is the message that he sent to Houston.
CLOs...
You should all know by now what the letters, CDOs mean? They were the root source to the banking crisis behind the great recession of 2008. People were getting mortgages based on NINJA Loans (no income, no job and no assets). Today, banking is quietly changing clients. They have left the individual and housing. They have turned to business. Neither the Republicans nor the Democrats offer any knowledge on the issue or subject. This is still another reason why I say that both of our political parties are corrupt. You can see this with the latest headlines, "Black Lives Matter." The two parties never offered any suggestions on police brutality or procedures. Now, they both offer plans. Can you see my point, my view?.
Well, Dear Reader, our new writer sees a new danger brewing. Before we continue, a quick recap on how banks operate. The corruption covers many aspects. CDOs refer to collateral debt obligations. These were the NINJA Loans. Banks got the rating services to give them their AAA rating - their best level. Then, they sold these loans as safe vehicles that offer a yield. The banks give the rating services a job. The service gives their employer a favorable response and perhaps, more work. Did you know that 13,000 AAA rated CDOs defaulted during the crisis? That is all you really need to know to continue. Dodd-Frank was passed to force banks into safer actions with taxpayers deposits. The idea of "stress" tests added to the peace of mind for everyone except the greedy nature of the banking industry. The industry knows the Fed has their backs. They can keep all the profits and socialize all the losses. This is what they are now doing.
Off the books
Ever have a job off the books, meaning no taxes? Fix the neighbor's car on Saturday morning. He pays you directly. No big deal. LBJ was so corrupt that he kept the cost of the Viet Nam war off the books. Politicians still do it. Our nation has trillions in unknown debt. It will surface some day and it has to be repaid. Enough on that. Anyway, banks circumvented Dodd-Frank. They keep certain risky loans off their books in bundles that they farm out. They also hide these so-called assets like Enron hid off the books companies with shell names. The banking industry is following the Enron playbook. They classify these assets in structures called, "Variable Interest Entities."
A report in the Atlantic by Frank Partnoy, says, "Wells Fargo has more than $1 trillion of VIE assets off the books.
So, what are these VIE assets, you ask? They are loans to shaky companies like J.C. Penny, Men's Wearhouse, etc. The 2008 crisis had shaky loans to home buyers and now, corporations that own malls, restaurants and retail are the users of these loans. They are called, Collateral Loan Obligations.
Do the math
The housing recession of 2008 had $640 billion of bad mortgages in CDOs. Today, CLOs have $880 billion in shaky loans. Business debt alone stands at 78% of GDP. The Fed is the guilty source of all this borrowing due to extra low interest rates. It gets worse. Two economist from the Federal Reserve have reported that US depository institutions and their holding companies own more than $110 billion of CLOs issued out of the Cayman Islands. This is so wrong. The Fed constantly seeks to expand its power and it constantly abuses its power. You heard that Wirecard cannot find $2 billion? The Financial Stability Board, a monitor of global systems, reported that $10 billion of CLOs are unaccounted for. This is why we call him the, "Economic Evangelist."
What he suggests...
Banks should be regulated like utilities. They provide a functions for business and citizens. They should not be allowed to venture beyond this format and of course, End the Fed!
Wednesday, June 24, 2020
Odds and Ends: June 2020
Space X
We begin with Space X. No need to remind everyone of the great accomplishment it achieved being the first commercial carrier to send astronauts to the Space Station. What might be overlooked is the other entry by the firm to offer broadband. Its Starlink Constellation is adding satellites and will soon have the capacity to begin operations.
In a related aspect, Astrobotic technology has been awarded the contract by NASA for the rover to the moon in 2022. This is a private company.
Failed test...
The S&P 500 failed last Friday with its test of the 3140 level. This is important because that date was options expiration day. This points to a negative trend, however the market still has enough bulls to try another attempt. If it fails again, this would be a near-term triple top.
One other point. This Friday is the end of the quarter to which means extra volatility. According to CNBC, the market could lose $65 billion in pension money to which may go to bonds. There are many doubts about this market, especially with the virus. Combining the two aspects, we, at Evolution see a down day.
Beware Greeks bearing gifts...
Goldman Sachs may not be Greek, however the firm came out of the closet, so to speak, by saying that they believe that gold will reach $1800 before the year ends. They go on to say that they see the precious metal breaking $2000 sometime in 2021. When fiat bankers say something nice or recommend gold, you know that they will let it rise and then, Boom! They will seek to short the metal. Just be careful. Put your stops on your gold stocks. The firm also sees money leaving the US due to low yields by the treasury.
Tidbits from the World Bank
The agency said this recession is far more reaching than even the Great Depression. In the 1929 hardship, the effects of the depression hit 83.8% of global nations. Today, the coronavirus has spread its pain to 92.9% of the world's nations.
In a related aspect, the UKs debt is now larger than their whole economy. Not good.
Speaking of pain...
Starwood Capital has missed its second consecutive debt payment. The owner of malls is looking as empty as its parking lots. With many firms grabbing stimulus loans, and many others rushing to bankruptcy court, I remind you that the Federal Reserve will release their latest stress tests for the banking industry on June 25th. Did you know that banks reveal loans when defaults happen, but they do not have to reveal what other dangerous loans could be connected to a default situation? So much for Dodd-Frank. By the way, the Fed sees the fourth quarter in 2020 being lower than the fourth quarter of 2019 to the overall economy.
Speaking of tension...
Everyone is aware of the trade tensions between the US and China, but a new, more dangerous tension has erupted between China and India along their common border. The news is sketchy, but it was reported that 20 Indian guards have been killed. Isn't the pandemic enough complications for the world?
More China: The Chinese have sent their last satellite into space. This will allow them to have their own operating global navigation system. They will move away from the US, GPS. Under military aspects, this is dangerous because prior to that, the US could close GPS to any Chinese belligerent
act. China has been working on this for two decades. Now, they will compete with the US. Their system is called, "Beidou System." I foresee a more aggressive stance by China to which will show their true colors. After all this is the year of the rat.
Speaking of the virus...
A new app is being launched in Ireland to trace the virus. I like the effort, but I worry about future applications. It is one thing to seek to fight a disease and another to track people and killing our freedom of movement and privacy. This is my worry. We can see the playbook from the "sick" people in the pharmaceutical industry. They make a dangerous, addictive drug. They seek permission from the FDA to offer the drug as a pain reliever with cancer victims. When they get approval like with the opioids, the prescription pad opens for everything and anything.
Wrap Technology...
is a new policing technique that is environmentally and humanely safe. The "Bolo Wrap" is shot from a cartridge. It is a metal rope that "ties" around a target. This allows the police to gather the suspect in a safe manner. There should be no loss of life. This is the next step for all police departments. In disclosure, I'm all-in on the stock (WRTC).
Other new ideas...
The latest smart phones will offer a new app that can read your forehead to check your temperature.
Facial recognition...
will be taking a step back after it was revealed in a lawsuit that its application of facial recognition matched 27 Congressman to convicted felons.
Bad time for women...
April may bring flowers, but along with its showers, is this sad data. In Mexico, eleven women were murdered every day for the month of April. What the hell is going on down there? Is the flu making people crazy?
It gets worse as things are worse in Iran.
For Honor?
I don't want to get into a religious conflict, but anyone contemplating on becoming a Muslim consider this. In Iran a father beheaded his 14-year daughter because he did not approve of her boyfriend. The older boyfriend seeking his daughter bought dishonor to the family. This happens all the time in Islamic nations. Although the practice is condemned, even by the supreme leader in Iran, it still happens. There were no arrests or charges bought against the father.
Islamic Law may not allow this practice, but words are cheap, action counts.
On a lighter note...
Lamborghini is offering their cheapest model, only $200,000 for Father's Day. I know the date has passed, but if one considers, supply, distance and the pandemic, what's a few days late?
It's a Mad, Mad, Mad, Mad World...
is one of the great comedy classic movies of all-time. You can see this in the stock market every day. Hertz offered a $500 million in a stock offering. The company revealed that the shares might be worthless. After this announcement the stock climbed. Wirecard cannot account for $2 billon. Yes, with a "B".
How about this? A new, small electric truck company with no production and no revenue raised more money than Ford. This makes the upstart worth more than Ford? Get real!
The firm, Nikola plans to target Ford's F-150 truck. It's a Mad World!
We begin with Space X. No need to remind everyone of the great accomplishment it achieved being the first commercial carrier to send astronauts to the Space Station. What might be overlooked is the other entry by the firm to offer broadband. Its Starlink Constellation is adding satellites and will soon have the capacity to begin operations.
In a related aspect, Astrobotic technology has been awarded the contract by NASA for the rover to the moon in 2022. This is a private company.
Failed test...
The S&P 500 failed last Friday with its test of the 3140 level. This is important because that date was options expiration day. This points to a negative trend, however the market still has enough bulls to try another attempt. If it fails again, this would be a near-term triple top.
One other point. This Friday is the end of the quarter to which means extra volatility. According to CNBC, the market could lose $65 billion in pension money to which may go to bonds. There are many doubts about this market, especially with the virus. Combining the two aspects, we, at Evolution see a down day.
Beware Greeks bearing gifts...
Goldman Sachs may not be Greek, however the firm came out of the closet, so to speak, by saying that they believe that gold will reach $1800 before the year ends. They go on to say that they see the precious metal breaking $2000 sometime in 2021. When fiat bankers say something nice or recommend gold, you know that they will let it rise and then, Boom! They will seek to short the metal. Just be careful. Put your stops on your gold stocks. The firm also sees money leaving the US due to low yields by the treasury.
Tidbits from the World Bank
The agency said this recession is far more reaching than even the Great Depression. In the 1929 hardship, the effects of the depression hit 83.8% of global nations. Today, the coronavirus has spread its pain to 92.9% of the world's nations.
In a related aspect, the UKs debt is now larger than their whole economy. Not good.
Speaking of pain...
Starwood Capital has missed its second consecutive debt payment. The owner of malls is looking as empty as its parking lots. With many firms grabbing stimulus loans, and many others rushing to bankruptcy court, I remind you that the Federal Reserve will release their latest stress tests for the banking industry on June 25th. Did you know that banks reveal loans when defaults happen, but they do not have to reveal what other dangerous loans could be connected to a default situation? So much for Dodd-Frank. By the way, the Fed sees the fourth quarter in 2020 being lower than the fourth quarter of 2019 to the overall economy.
Speaking of tension...
Everyone is aware of the trade tensions between the US and China, but a new, more dangerous tension has erupted between China and India along their common border. The news is sketchy, but it was reported that 20 Indian guards have been killed. Isn't the pandemic enough complications for the world?
More China: The Chinese have sent their last satellite into space. This will allow them to have their own operating global navigation system. They will move away from the US, GPS. Under military aspects, this is dangerous because prior to that, the US could close GPS to any Chinese belligerent
act. China has been working on this for two decades. Now, they will compete with the US. Their system is called, "Beidou System." I foresee a more aggressive stance by China to which will show their true colors. After all this is the year of the rat.
Speaking of the virus...
A new app is being launched in Ireland to trace the virus. I like the effort, but I worry about future applications. It is one thing to seek to fight a disease and another to track people and killing our freedom of movement and privacy. This is my worry. We can see the playbook from the "sick" people in the pharmaceutical industry. They make a dangerous, addictive drug. They seek permission from the FDA to offer the drug as a pain reliever with cancer victims. When they get approval like with the opioids, the prescription pad opens for everything and anything.
Wrap Technology...
is a new policing technique that is environmentally and humanely safe. The "Bolo Wrap" is shot from a cartridge. It is a metal rope that "ties" around a target. This allows the police to gather the suspect in a safe manner. There should be no loss of life. This is the next step for all police departments. In disclosure, I'm all-in on the stock (WRTC).
Other new ideas...
The latest smart phones will offer a new app that can read your forehead to check your temperature.
Facial recognition...
will be taking a step back after it was revealed in a lawsuit that its application of facial recognition matched 27 Congressman to convicted felons.
Bad time for women...
April may bring flowers, but along with its showers, is this sad data. In Mexico, eleven women were murdered every day for the month of April. What the hell is going on down there? Is the flu making people crazy?
It gets worse as things are worse in Iran.
For Honor?
I don't want to get into a religious conflict, but anyone contemplating on becoming a Muslim consider this. In Iran a father beheaded his 14-year daughter because he did not approve of her boyfriend. The older boyfriend seeking his daughter bought dishonor to the family. This happens all the time in Islamic nations. Although the practice is condemned, even by the supreme leader in Iran, it still happens. There were no arrests or charges bought against the father.
Islamic Law may not allow this practice, but words are cheap, action counts.
On a lighter note...
Lamborghini is offering their cheapest model, only $200,000 for Father's Day. I know the date has passed, but if one considers, supply, distance and the pandemic, what's a few days late?
It's a Mad, Mad, Mad, Mad World...
is one of the great comedy classic movies of all-time. You can see this in the stock market every day. Hertz offered a $500 million in a stock offering. The company revealed that the shares might be worthless. After this announcement the stock climbed. Wirecard cannot account for $2 billon. Yes, with a "B".
How about this? A new, small electric truck company with no production and no revenue raised more money than Ford. This makes the upstart worth more than Ford? Get real!
The firm, Nikola plans to target Ford's F-150 truck. It's a Mad World!
Wednesday, June 17, 2020
The Fed and Shelter
The three most important things for every individual is energy, food and a place to stay. Under a bridge, on a park bench or under the skies is not shelter. When your dollar has purchasing power, it buys more. In the past, even with low wages, low income laborers made ends meet because of the strength of the dollar. Speaking of the dollar, the US has been given a great gift by being named the currency reserve of the world. This position also includes responsibility. The US Federal Reserve has failed both the global community and American citizens. By continually running deficits, the US has gone from being the greatest lender to the greatest debtor. This is the background for one of three basic needs - shelter.
This humongous failure by our central bank, the Federal Reserve is being seen on American streets - everywhere. We got homelessness, poverty and a new issue of worry, food insecurity. The irony of it is America is still the greatest agricultural nation ever and to have its people, its children going to bed hungry defies explanation. We, at Evolution can sum it up with two words - Federal Reserve.
Latest Fed meeting...
The chair, Powell stated that the central bank will leave rates near zero until 2022. Here, at Evolution and as you know, we called it. However, the chair stooped to a new low. In giving guidance for the economy, Powell gave some truth to misdirect this big lie. He said it will take some time for the economy to recover. It will get moving by the fourth quarter. Many will remain jobless even amid the recovery. Then, he reminded his audience that unemployment, now at 13% will shrink by the fourth quarter to 9%.
This is a LIE!
Back in the day when I attended school, we used "old" math. We know from reports by the Bureau of Labor that there are presently, 44 million claims for unemployment. Within that stat it is also the fact that some of these claims by citizens are in situations where they have returned to work. They are seeking benefits for the time that they were locked out. However, the bureau also admits that there are still many Americans who were not able to file a claim due to overload response within their state. This balances out the equation. Bear with me. I will use the 42 million (previous week total) and the highest employment on record which was in 2019 at 134 million workers at full-time. My old math says 42 out of 134 turns out to be 30%. If, you add part-time help, the figure swells to 160 million. If you like that number it is 26%. Either way, the Fed and the government LIE!
30% is the true percentage of the unemployed! This is as bad as the Great Depression!
New Conspiracy...
Why is the Labor Bureau so out of touch? Because cutbacks, especially by Republicans to the agency and in Red States in their labor departments, is why there is no response for citizens filing claims. It is so bad that the Labor Bureau does not gather info from every state on unemployment. They do a phone poll of 60,000 for a nation of 320 million. Get real! Hire some people!
World Federal Reserve
The G-20 central banks have given emerging markets forbearance with their loans for the rest of 2020. By the way, G-20 considers China and India as emerging markets. This is pure BS! China is the world leader in manufacturing and exports. Whose kidding who? They have already surpassed the US as the number one economy in the world and they are a member of the G-20. Get real!
TJs feeling is becoming a prophecy.
- "If the American people ever allow private banks (read Federal Reserve) to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..."
- Thomas Jefferson
Evictions Are Coming...
Federal moratorium on evictions due to the lockdown end 25 July. Some of those evictions begin at the end of June and in a few states, the process has already started. You may not realize that there is an eviction every 7 minutes. The monthly figure of 300,000 is a stat gathered prior to the virus. There are more evictions than foreclosures even during the financial crisis of 2008.
You don't want to live in...
Charleston, South Carolina. They evict more renters every month than totals of many states. Los Angeles has 40% of Blacks living on the street. This sad stat gets a worse feel when Afro-Americans only consist of 6.5% of California's population. This homelessness in our nation was taking a turn for the better prior to the pandemic. It shrank from 650K to 500K. Joel Robert, chief economist at PATH, a L.A. advocacy for homelessness, says, he sees a new surge of at least another 250K. Many coalitions are calling for rental assistance and affordable housing in any new stimulus by the government.
The latest danger is over 4.6 million homeowners skipped their April payment. Oxford Economics believes that 15% of all homeowners will end up delinquent. In addition, there are about 43 million rental units in the US. Almost half is owned by small business which equates to one person or family. These are mostly people who save and attempt social mobility. They may fall back to the starting gate of economic progress. If renters can't pay them, they cannot pay their mortgage, pay state taxes or do maintenance. This is economic contagion for them just like the virus. The only good news is according to the National Multifamily Housing Council that reports that 93% of renters have their payments up-to-date.
Did you know that when banks first offered home mortgages that they were for a term of just five years? Usually they came with a balloon bill at the end of the term. There were no rollovers. Today, car loans stretch out for seven years and you can get a new rollover agreement. The loan amount exceeds the loan amount of the first, five year loans on homes. Todays vehicles cost more than homes in the 60s. This is loss of purchasing power. This is why I say, End the Fed!
This humongous failure by our central bank, the Federal Reserve is being seen on American streets - everywhere. We got homelessness, poverty and a new issue of worry, food insecurity. The irony of it is America is still the greatest agricultural nation ever and to have its people, its children going to bed hungry defies explanation. We, at Evolution can sum it up with two words - Federal Reserve.
Latest Fed meeting...
The chair, Powell stated that the central bank will leave rates near zero until 2022. Here, at Evolution and as you know, we called it. However, the chair stooped to a new low. In giving guidance for the economy, Powell gave some truth to misdirect this big lie. He said it will take some time for the economy to recover. It will get moving by the fourth quarter. Many will remain jobless even amid the recovery. Then, he reminded his audience that unemployment, now at 13% will shrink by the fourth quarter to 9%.
This is a LIE!
Back in the day when I attended school, we used "old" math. We know from reports by the Bureau of Labor that there are presently, 44 million claims for unemployment. Within that stat it is also the fact that some of these claims by citizens are in situations where they have returned to work. They are seeking benefits for the time that they were locked out. However, the bureau also admits that there are still many Americans who were not able to file a claim due to overload response within their state. This balances out the equation. Bear with me. I will use the 42 million (previous week total) and the highest employment on record which was in 2019 at 134 million workers at full-time. My old math says 42 out of 134 turns out to be 30%. If, you add part-time help, the figure swells to 160 million. If you like that number it is 26%. Either way, the Fed and the government LIE!
30% is the true percentage of the unemployed! This is as bad as the Great Depression!
New Conspiracy...
Why is the Labor Bureau so out of touch? Because cutbacks, especially by Republicans to the agency and in Red States in their labor departments, is why there is no response for citizens filing claims. It is so bad that the Labor Bureau does not gather info from every state on unemployment. They do a phone poll of 60,000 for a nation of 320 million. Get real! Hire some people!
World Federal Reserve
The G-20 central banks have given emerging markets forbearance with their loans for the rest of 2020. By the way, G-20 considers China and India as emerging markets. This is pure BS! China is the world leader in manufacturing and exports. Whose kidding who? They have already surpassed the US as the number one economy in the world and they are a member of the G-20. Get real!
TJs feeling is becoming a prophecy.
- "If the American people ever allow private banks (read Federal Reserve) to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..."
- Thomas Jefferson
Evictions Are Coming...
Federal moratorium on evictions due to the lockdown end 25 July. Some of those evictions begin at the end of June and in a few states, the process has already started. You may not realize that there is an eviction every 7 minutes. The monthly figure of 300,000 is a stat gathered prior to the virus. There are more evictions than foreclosures even during the financial crisis of 2008.
You don't want to live in...
Charleston, South Carolina. They evict more renters every month than totals of many states. Los Angeles has 40% of Blacks living on the street. This sad stat gets a worse feel when Afro-Americans only consist of 6.5% of California's population. This homelessness in our nation was taking a turn for the better prior to the pandemic. It shrank from 650K to 500K. Joel Robert, chief economist at PATH, a L.A. advocacy for homelessness, says, he sees a new surge of at least another 250K. Many coalitions are calling for rental assistance and affordable housing in any new stimulus by the government.
The latest danger is over 4.6 million homeowners skipped their April payment. Oxford Economics believes that 15% of all homeowners will end up delinquent. In addition, there are about 43 million rental units in the US. Almost half is owned by small business which equates to one person or family. These are mostly people who save and attempt social mobility. They may fall back to the starting gate of economic progress. If renters can't pay them, they cannot pay their mortgage, pay state taxes or do maintenance. This is economic contagion for them just like the virus. The only good news is according to the National Multifamily Housing Council that reports that 93% of renters have their payments up-to-date.
Did you know that when banks first offered home mortgages that they were for a term of just five years? Usually they came with a balloon bill at the end of the term. There were no rollovers. Today, car loans stretch out for seven years and you can get a new rollover agreement. The loan amount exceeds the loan amount of the first, five year loans on homes. Todays vehicles cost more than homes in the 60s. This is loss of purchasing power. This is why I say, End the Fed!
Wednesday, June 10, 2020
Artistic Voices for Today
Pandemic, Violence, Homelessness, Poverty, Racial Divide, Geopolitical Tension, Food Insecurity, Jobless, Loneliness and Abuse. Each and everyone is a sad story. For those affected there seems to be no end in sight. For those of us who are aware, the media, society constantly bombard us and our senses need a reprieve. It is here with words from artists, including our own Sebastian. Take a moment and relax, while pondering their inspiration for a better world.
- Let America Be America Again
- Langston Hughes
Let America be America again,
Let it be the dream it used to be.
Let it be the pioneer on the plain
Seeking a home where he himself is free.
(America never was America to me.)
Let America be the dream the dreamers dreamed
Let it be that great strong land of love.
Where never kings connive nor tyrants scheme
That any man be crushed by one above.
(It never was America to me.)
O, let my land be a land where Liberty
Is crowned with no false patriotic wreath
But opportunity is real, and life is free.
Equality is in the air we breathe.
(There's never been equality for me.
Nor freedom in this "Homeland of the free.)
The free?
Who said the free? Not me?
Surely not me? The millions on relief today?
The millions shot down when we strike?
The millions who have nothing for our pay?
For all the dreams we've dreamed
And all the songs we've sung
And all the hopes we've held
And all the flags we've hung,
The millions who have nothing for our pay -
Except the dream that's almost dead today.
O, let America be America again -
The land that never has been get -
And get must be - the land where (every) man is free.
The land that's mine, the poor man's, Indians, Negro's, Me -
Who made America
Whose sweat and blood, whose faith and pain,
Whose hand at the foundry, whose plow in the rain,
Must bring back our mighty dream again.
Sure, call me any ugly name you choose -
The steel of freedom does not stain.
From those who live like leeches on the people's lives,
We must take back our land again,
America!
O, yes,
I say it plain,
America never was America to me,
And yet I swear this oath -
America will be!
Out of the rack and ruin of our gangster dead,
The rape and rot of graft, and stealth, and lies,
We, the people, must redeem
The land, the mines, the plants, the rivers,
The mountains and the endless plain -
All, all the stretch of these great green lakes -
And make America again!
- No Title
- Sr. Celeste Hupert, CSFN
Mercy of God I trust in Thee
These times we live in are
Now not so free
Mercy of God, we call upon you
forgive us our sins
Our hearts renew
Mercy of God through your lfe
We are saved because
You conquered our strife
Mercy of God we plead with you
Stop this coronavirus
The earth renew
Mercy of God we trust in you
Given new life in us
Let your light shine through
Mercy of God fill us with peace
Peace within and your love
May in us forever increase.
- The Spirit Around Us
- Sebastian (from unpublished work, Reuniting the Unknown).
As you read, whether you believe or not, take this moment
in silence to remember all those who gave all for all of us...
Do any of us have the right to cease any voice, any breath?
We give thanks when there is calm,
To show appreciation.
To add a positive force.
To take disturbance as an opportunity,
To channel our emotions for positive energy,
To the spirit.
And no matter if we breakdown life
Into its smallest matter scientifically
Or create it physically, whether we look
Within or about us, the source of our
Consciousness feels its power.
- Thomas Jefferson
" If the American people ever allow private banks (read Federal Reserve)
to control the issue of their currency, first by inflation, then by deflation,
the banks and corporations that will grow up around them will
deprive the people of all property until their children
wake up homeless on the continent their Fathers conquered..."
- Aeschylus
Even in our sleep, pain which cannot forget
falls drop by drop upon the heart,
until, in our own despair,
comes wisdom
through the awful grace of God.
- Let America Be America Again
- Langston Hughes
Let America be America again,
Let it be the dream it used to be.
Let it be the pioneer on the plain
Seeking a home where he himself is free.
(America never was America to me.)
Let America be the dream the dreamers dreamed
Let it be that great strong land of love.
Where never kings connive nor tyrants scheme
That any man be crushed by one above.
(It never was America to me.)
O, let my land be a land where Liberty
Is crowned with no false patriotic wreath
But opportunity is real, and life is free.
Equality is in the air we breathe.
(There's never been equality for me.
Nor freedom in this "Homeland of the free.)
The free?
Who said the free? Not me?
Surely not me? The millions on relief today?
The millions shot down when we strike?
The millions who have nothing for our pay?
For all the dreams we've dreamed
And all the songs we've sung
And all the hopes we've held
And all the flags we've hung,
The millions who have nothing for our pay -
Except the dream that's almost dead today.
O, let America be America again -
The land that never has been get -
And get must be - the land where (every) man is free.
The land that's mine, the poor man's, Indians, Negro's, Me -
Who made America
Whose sweat and blood, whose faith and pain,
Whose hand at the foundry, whose plow in the rain,
Must bring back our mighty dream again.
Sure, call me any ugly name you choose -
The steel of freedom does not stain.
From those who live like leeches on the people's lives,
We must take back our land again,
America!
O, yes,
I say it plain,
America never was America to me,
And yet I swear this oath -
America will be!
Out of the rack and ruin of our gangster dead,
The rape and rot of graft, and stealth, and lies,
We, the people, must redeem
The land, the mines, the plants, the rivers,
The mountains and the endless plain -
All, all the stretch of these great green lakes -
And make America again!
- No Title
- Sr. Celeste Hupert, CSFN
Mercy of God I trust in Thee
These times we live in are
Now not so free
Mercy of God, we call upon you
forgive us our sins
Our hearts renew
Mercy of God through your lfe
We are saved because
You conquered our strife
Mercy of God we plead with you
Stop this coronavirus
The earth renew
Mercy of God we trust in you
Given new life in us
Let your light shine through
Mercy of God fill us with peace
Peace within and your love
May in us forever increase.
- The Spirit Around Us
- Sebastian (from unpublished work, Reuniting the Unknown).
As you read, whether you believe or not, take this moment
in silence to remember all those who gave all for all of us...
Do any of us have the right to cease any voice, any breath?
We give thanks when there is calm,
To show appreciation.
To add a positive force.
To take disturbance as an opportunity,
To channel our emotions for positive energy,
To the spirit.
And no matter if we breakdown life
Into its smallest matter scientifically
Or create it physically, whether we look
Within or about us, the source of our
Consciousness feels its power.
- Thomas Jefferson
" If the American people ever allow private banks (read Federal Reserve)
to control the issue of their currency, first by inflation, then by deflation,
the banks and corporations that will grow up around them will
deprive the people of all property until their children
wake up homeless on the continent their Fathers conquered..."
- Aeschylus
Even in our sleep, pain which cannot forget
falls drop by drop upon the heart,
until, in our own despair,
comes wisdom
through the awful grace of God.
Wednesday, June 3, 2020
Distant Eyes: Inflation, Deflation or What?
With the lockdowns fading and attempts to return to normalcy, my mind thinks about the future. We had a meeting at Evolution. The biggest obstacle that we face was ourselves. This divide is evident with the civil rights protests currently happening. It was also at our meeting. We are similar. You see, we are pals. We think a like. This has a weak link because the future outcomes are as variable as the dust floating in the sky. The great Greek philosopher, Herodotus had a saying, "Where wisdom is called for, then force is of little use. Our streets are full of bad choices and mostly, with force.
Our government chose force in more ways than one. Excess force by police. The force lockdowns. The use of (force) debt to overcome all economic problems. The lack of admittance to mistakes. They remind us all of Winston Churchill's observation about Americans, "You can always count on America doing the right thing - after they tried everything else."
Two Biggest Harms
The two lingering effects of the response to the virus will be the harm it did to individual firms and all workers associated with those enterprises. The civil rights issue will always be with us as long as workers are exploited.
The other and more dangerous response will be the government's use of debt. The stimulus checks to people and the bonus help with money for the unemployment insurance was acceptable. However, any financial assistance to the larger corporations like airlines is unacceptable. One aspect of capitalism is its destruction nature. It acts like Darwin's survival of the fittest. Many corporations were led by greedy CEOs. These small minded honchos chose buybacks to sweeten their option in retirement. This satisfied investors who do not see the big picture. The same CEOs didn't cover their workers pension. The government did not intervene. The CEOs didn't do R&D to give their firms a future. They didn't save for a rainy day. They need to be chased out of the system along with their thinking. Their firms will be replaced by more efficient entities. This is how the free market operates or is suppose too. The police need more go-between. Try the easy way before using the heavy hand of the law.
Forrest Gump's Nature
Maybe the Gump had a major disability, but he was always positive in nature. He didn't see Lt. Dan with no legs. Lt. Dan is our economy. We want to die, but if we find something at the bottom of our soul, we will survive. A little rain falls on every head. We will continue with life, but the life that we will partake in might change. We should prepare. Preparation is the key to success. The police have to learn to put things in their proper perspective. A traffic ticket is not a life and death situation. That's it for the cliché's and preaching.
Inflation or Deflation?
The biggest market is the bond market. It is the place for smart money. The bonds are saying that there will be deflation ahead. The Fed has kept low rates. This makes money cheap which helps many assets. This is central to the aspect that the stock market has been rallying even with 40 million Americans unemployed. Cheap money helps assets and thus, the companies within the stock exchanges. The Fed chair, Powell says even though the Fed has kept rates low, the Fed will not entertain negative rates. Dear Reader, he is lying. We already have negative rates and in fact, we had them for years. The benchmark for notes is the US 10-year bond. Currently, it is at .63%. This note is suppose to cover inflation for ten years. In early April, gasoline decline to under $2 dollars per gallon. The most important commodity was acting deflationary. The government said deflation is dangerous and it is present in our economy. Since that time, gasoline has increased in price to over $2.50 a gallon. This one necessary item that is needed by everyone has already broken the outlook for the 10-year note. Thus, this proves we have negative rates!
Put it this way. The government is like the guy who works at a gasoline retail location. When prices rise, he finds his ladder. He climbs to raise prices before the sun comes out. When prices fall, he can't find his ladder. It takes the guy over a week to lower prices. Of course, he is an amateur. The government takes years.
Bottom line: these aspects are central to the case for deflation. Civil unrest doesn't help either.
Experts
Give them the Bronx cheer! Anyway, the experts are the ones leading the scenario for deflation in our future. They do not see or know real people. The pandemic has shown many things. We have exported too many necessary aspects that are needed by society. We cannot manufacture medicine or any of the components of PPE that is needed by people in responsive positions like first responders and health care workers. The connections are endless - the truck drivers, stock shelf people, on and on. I once said that I admire Russian thinking in education. They remind young minds that garbage workers do a dirty job for low pay, but their work is essential. It stops the spread of dangerous bacteria! They should be thanked.
How many thanks did you realize during this painful period? What we see here at Evolution is ordinary people waking up to reality. This happened once before in the early1970s. Garbage workers went on strike for better wages and benefits. It took a while, but they succeeded. However, other workers and mostly in unions, also said and thought about what the sanitation people realized. They went on strike. Our nation had a endless series of strikes. We will get this again!
Landlords will seek higher rents to make up for lost income. Banks will add fees to make up for forbearance with mortgages. Grocery stores will try to maintain the higher food prices that they received from hoarding. Everyday workers will realize the dangers that could arise from their job. They will want a higher wage. The meme is in the air. The virus of higher prices will spread.
The result will be inflation. The irony of this future shock will be at the Fed. For years the Fed said it was seeking 2% inflation. It was rarely received. By the way, seeking inflation is against the Fed mandate. Nevertheless, I see workers seeking higher wages. Corporations will be seeking AI to replace workers. The battle lines will cause inflation until one side wins the battle. The other and more strongly effect of this virus will be felt by our currency. All the Fed printing will devalue our dollar which will cause inflation. When ordinary citizens wake up to this crime, there will be more civil unrest. There will be more protests. This is why I desire to form a new third political party that places citizens as its primary purpose.
Bottom line: This is the case for inflation. Protests foster the idea of hoarding. This is inflationary.
Or What Case?
The thing that I worry about most is the disruptive aspects of new technology. As corporations look to be first with driverless vehicles, and with robots doing warehouse work and self-checkouts and internet shopping over personal visits to retail, the loss of jobs will severely hurt our economy. When people lose their ability to live and only exist, civil unrest is not far behind. In addition, wages will shrink due to the availability of laborers. This points to deflation. However, the loss of income points to a stagnating economy. If prices rise and they will due to the dollar losing value with excessive printing or worse losing its status as the world's reserve currency, the US will have inflation. Then, we could encounter the worse of all economies - stagflation. This is rising prices in a shrinking economy. First remedy is not a vaccine but to End the Fed!
We need fiscal leadership. We need a balance budget. We need to end foreign wars and cut the military budget in half! Then, our society will begin to heal. Peace.
Our government chose force in more ways than one. Excess force by police. The force lockdowns. The use of (force) debt to overcome all economic problems. The lack of admittance to mistakes. They remind us all of Winston Churchill's observation about Americans, "You can always count on America doing the right thing - after they tried everything else."
Two Biggest Harms
The two lingering effects of the response to the virus will be the harm it did to individual firms and all workers associated with those enterprises. The civil rights issue will always be with us as long as workers are exploited.
The other and more dangerous response will be the government's use of debt. The stimulus checks to people and the bonus help with money for the unemployment insurance was acceptable. However, any financial assistance to the larger corporations like airlines is unacceptable. One aspect of capitalism is its destruction nature. It acts like Darwin's survival of the fittest. Many corporations were led by greedy CEOs. These small minded honchos chose buybacks to sweeten their option in retirement. This satisfied investors who do not see the big picture. The same CEOs didn't cover their workers pension. The government did not intervene. The CEOs didn't do R&D to give their firms a future. They didn't save for a rainy day. They need to be chased out of the system along with their thinking. Their firms will be replaced by more efficient entities. This is how the free market operates or is suppose too. The police need more go-between. Try the easy way before using the heavy hand of the law.
Forrest Gump's Nature
Maybe the Gump had a major disability, but he was always positive in nature. He didn't see Lt. Dan with no legs. Lt. Dan is our economy. We want to die, but if we find something at the bottom of our soul, we will survive. A little rain falls on every head. We will continue with life, but the life that we will partake in might change. We should prepare. Preparation is the key to success. The police have to learn to put things in their proper perspective. A traffic ticket is not a life and death situation. That's it for the cliché's and preaching.
Inflation or Deflation?
The biggest market is the bond market. It is the place for smart money. The bonds are saying that there will be deflation ahead. The Fed has kept low rates. This makes money cheap which helps many assets. This is central to the aspect that the stock market has been rallying even with 40 million Americans unemployed. Cheap money helps assets and thus, the companies within the stock exchanges. The Fed chair, Powell says even though the Fed has kept rates low, the Fed will not entertain negative rates. Dear Reader, he is lying. We already have negative rates and in fact, we had them for years. The benchmark for notes is the US 10-year bond. Currently, it is at .63%. This note is suppose to cover inflation for ten years. In early April, gasoline decline to under $2 dollars per gallon. The most important commodity was acting deflationary. The government said deflation is dangerous and it is present in our economy. Since that time, gasoline has increased in price to over $2.50 a gallon. This one necessary item that is needed by everyone has already broken the outlook for the 10-year note. Thus, this proves we have negative rates!
Put it this way. The government is like the guy who works at a gasoline retail location. When prices rise, he finds his ladder. He climbs to raise prices before the sun comes out. When prices fall, he can't find his ladder. It takes the guy over a week to lower prices. Of course, he is an amateur. The government takes years.
Bottom line: these aspects are central to the case for deflation. Civil unrest doesn't help either.
Experts
Give them the Bronx cheer! Anyway, the experts are the ones leading the scenario for deflation in our future. They do not see or know real people. The pandemic has shown many things. We have exported too many necessary aspects that are needed by society. We cannot manufacture medicine or any of the components of PPE that is needed by people in responsive positions like first responders and health care workers. The connections are endless - the truck drivers, stock shelf people, on and on. I once said that I admire Russian thinking in education. They remind young minds that garbage workers do a dirty job for low pay, but their work is essential. It stops the spread of dangerous bacteria! They should be thanked.
How many thanks did you realize during this painful period? What we see here at Evolution is ordinary people waking up to reality. This happened once before in the early1970s. Garbage workers went on strike for better wages and benefits. It took a while, but they succeeded. However, other workers and mostly in unions, also said and thought about what the sanitation people realized. They went on strike. Our nation had a endless series of strikes. We will get this again!
Landlords will seek higher rents to make up for lost income. Banks will add fees to make up for forbearance with mortgages. Grocery stores will try to maintain the higher food prices that they received from hoarding. Everyday workers will realize the dangers that could arise from their job. They will want a higher wage. The meme is in the air. The virus of higher prices will spread.
The result will be inflation. The irony of this future shock will be at the Fed. For years the Fed said it was seeking 2% inflation. It was rarely received. By the way, seeking inflation is against the Fed mandate. Nevertheless, I see workers seeking higher wages. Corporations will be seeking AI to replace workers. The battle lines will cause inflation until one side wins the battle. The other and more strongly effect of this virus will be felt by our currency. All the Fed printing will devalue our dollar which will cause inflation. When ordinary citizens wake up to this crime, there will be more civil unrest. There will be more protests. This is why I desire to form a new third political party that places citizens as its primary purpose.
Bottom line: This is the case for inflation. Protests foster the idea of hoarding. This is inflationary.
Or What Case?
The thing that I worry about most is the disruptive aspects of new technology. As corporations look to be first with driverless vehicles, and with robots doing warehouse work and self-checkouts and internet shopping over personal visits to retail, the loss of jobs will severely hurt our economy. When people lose their ability to live and only exist, civil unrest is not far behind. In addition, wages will shrink due to the availability of laborers. This points to deflation. However, the loss of income points to a stagnating economy. If prices rise and they will due to the dollar losing value with excessive printing or worse losing its status as the world's reserve currency, the US will have inflation. Then, we could encounter the worse of all economies - stagflation. This is rising prices in a shrinking economy. First remedy is not a vaccine but to End the Fed!
We need fiscal leadership. We need a balance budget. We need to end foreign wars and cut the military budget in half! Then, our society will begin to heal. Peace.
Wednesday, May 27, 2020
Odds and Ends: May 2020
I'm not here to blow my own horn or the movie by Frank Sinatra. However, JFL told you one month ago that the unemployment numbers should be 10 million higher and he was right. Now, we get reports like this one from the University of California at Beck Institute. It says that 42% of all recently laid off workers will permanently lose their job. Not good.
Another opinion with a similar observation comes from Michael Feroli of JP Morgan Chase. He sees the recovery and return to employment as very slow. In a related aspect the stock market has been betting on artificial intelligence firms in the recent rally. This won't be good for workers or their wages.
Covering Your Ass
The Fed Chairman, Powell said in an interview on 60 Minutes that the economy will recover. Don't bet against America. Another Great Depression is unlikely.
However, later he said, "No one knows what will happen and it appears the recovery will drag out into 2021. It depends on Congress."
I see a lot of "ifs" to his call. If you are making bets, I'd rather go with the Yankees.
Isn't it the norm that one politician blames another segment of government for our problems, most notably the economic ones? We, at Evolution see it as both of our political parties are corrupt. They both allowed manufacturing to outsource labor. They refuse to provide protectionism while every nation in the world resorts to utilize protectionism. Every nation claims that they don't, but they lie just like our politicians. We have reached an inflection point in our economy. Our rising poverty rates, homelessness and shrinking middle class all point to an economy that has little social mobility. This was all evident prior to the virus. The virus showed us that we cannot protect ourselves because we don't produce anything. Not even a simple protective mask. The supply chains are all imports from China. The only thing that we export is DEBT!
P.S. The amount is $3 billion per day.
Here is another reason to End the Fed!
The excessive money printing is mind boggling until you realize some concrete points.
1 million seconds = 11 days
1 billion seconds = 1988
1 trillion seconds = 30,000 B.C.
This is currency destruction and standard of living destruction. For example, your household earns
$50,000 a year. It will take 20 million years to earn one trillion.
A job that pays one dollar per second or $3,600 a day which translates to $86,400 a year needs 31,700 years to reach $1 trillion. The Federal Reserve printed $9 trillion in one month.
Not alone...
The Fed has all central, fiat banks doing the same thing. The G-20 recently agreed to freeze bilateral loan repayments until the end of 2020. I bet that this will be extended. Why, you ask? Because defaults are happening so fast with so many that they are overwhelming the international court system just like the virus overwhelmed hospitals. Oil is central to the economic well being of Mexico, Nigeria, Columbia, Ecuador as well as many other nations. Their budgets are busted with the decline in the price of oil. This is also happening in the EU due to expenses that were not planned due to Covid-19. There is a rising meme to split from the EU and Brexit has not yet been resolved.
Housing worries
It is bad enough that housing had a no spring sale season, but with people losing their income, this is beginning to surface. Vacation homes are coming onto the market. Oxford Economics estimates that 15% of Americans are behind on their mortgage payments. With home prices high the owners of second homes are deciding to change future plans. These homes are far from services. If a flood of them hit the market at the same time, prices will not only fall, but the housing market could change overnight. It could go from a limited supply to a glut of homes. This is doubly possible in retirement communities.
More tension...
China passed a new law circumventing Hong Kong's current legislation. This could cause economic problems to the 1300 US firms doing business in Hong Kong. That huge number should give everyone some insight to the amount of US jobs lost to outsourcing. I can almost hear the critics saying, "This is the positive effects of globalization." Yeah, I got your positive effects, right here, pal. Try to find a job that pays a living wage in America? Anyway, this law will come in conflict to the special trading privilege relationship that the US has with Hong Kong. To be honest, I did not know that we enjoyed a special relationship with Hong Kong. Nevertheless, going forth this is in doubt.
In a related aspect...
Nations are displaying low-level, tit-for-tat tendencies. France said that it will impose a 14-day quarantine on all foreign fliers. The UK responded with a similar quarantine. This only hurts both nations and all airlines. The international airline agency, IATA said the airlines need stimulus, but it should come without political strings. Global airlines recovery will be slow and hard as the firms have to much debt. We, at Evolution feel nations should make a decision. Either you impose flight restrictions on a nation or allow travelers to fly freely like before the virus hit.
Don't believe all stats...
The makers of the game, "Fortnight" claim that they have 350 million users in the US. Last time I checked with the US Census, the population figure was 320 million. I guess the company uses modern math? Go figure! Be save. Be positive. Be with His peace.
Another opinion with a similar observation comes from Michael Feroli of JP Morgan Chase. He sees the recovery and return to employment as very slow. In a related aspect the stock market has been betting on artificial intelligence firms in the recent rally. This won't be good for workers or their wages.
Covering Your Ass
The Fed Chairman, Powell said in an interview on 60 Minutes that the economy will recover. Don't bet against America. Another Great Depression is unlikely.
However, later he said, "No one knows what will happen and it appears the recovery will drag out into 2021. It depends on Congress."
I see a lot of "ifs" to his call. If you are making bets, I'd rather go with the Yankees.
Isn't it the norm that one politician blames another segment of government for our problems, most notably the economic ones? We, at Evolution see it as both of our political parties are corrupt. They both allowed manufacturing to outsource labor. They refuse to provide protectionism while every nation in the world resorts to utilize protectionism. Every nation claims that they don't, but they lie just like our politicians. We have reached an inflection point in our economy. Our rising poverty rates, homelessness and shrinking middle class all point to an economy that has little social mobility. This was all evident prior to the virus. The virus showed us that we cannot protect ourselves because we don't produce anything. Not even a simple protective mask. The supply chains are all imports from China. The only thing that we export is DEBT!
P.S. The amount is $3 billion per day.
Here is another reason to End the Fed!
The excessive money printing is mind boggling until you realize some concrete points.
1 million seconds = 11 days
1 billion seconds = 1988
1 trillion seconds = 30,000 B.C.
This is currency destruction and standard of living destruction. For example, your household earns
$50,000 a year. It will take 20 million years to earn one trillion.
A job that pays one dollar per second or $3,600 a day which translates to $86,400 a year needs 31,700 years to reach $1 trillion. The Federal Reserve printed $9 trillion in one month.
Not alone...
The Fed has all central, fiat banks doing the same thing. The G-20 recently agreed to freeze bilateral loan repayments until the end of 2020. I bet that this will be extended. Why, you ask? Because defaults are happening so fast with so many that they are overwhelming the international court system just like the virus overwhelmed hospitals. Oil is central to the economic well being of Mexico, Nigeria, Columbia, Ecuador as well as many other nations. Their budgets are busted with the decline in the price of oil. This is also happening in the EU due to expenses that were not planned due to Covid-19. There is a rising meme to split from the EU and Brexit has not yet been resolved.
Housing worries
It is bad enough that housing had a no spring sale season, but with people losing their income, this is beginning to surface. Vacation homes are coming onto the market. Oxford Economics estimates that 15% of Americans are behind on their mortgage payments. With home prices high the owners of second homes are deciding to change future plans. These homes are far from services. If a flood of them hit the market at the same time, prices will not only fall, but the housing market could change overnight. It could go from a limited supply to a glut of homes. This is doubly possible in retirement communities.
More tension...
China passed a new law circumventing Hong Kong's current legislation. This could cause economic problems to the 1300 US firms doing business in Hong Kong. That huge number should give everyone some insight to the amount of US jobs lost to outsourcing. I can almost hear the critics saying, "This is the positive effects of globalization." Yeah, I got your positive effects, right here, pal. Try to find a job that pays a living wage in America? Anyway, this law will come in conflict to the special trading privilege relationship that the US has with Hong Kong. To be honest, I did not know that we enjoyed a special relationship with Hong Kong. Nevertheless, going forth this is in doubt.
In a related aspect...
Nations are displaying low-level, tit-for-tat tendencies. France said that it will impose a 14-day quarantine on all foreign fliers. The UK responded with a similar quarantine. This only hurts both nations and all airlines. The international airline agency, IATA said the airlines need stimulus, but it should come without political strings. Global airlines recovery will be slow and hard as the firms have to much debt. We, at Evolution feel nations should make a decision. Either you impose flight restrictions on a nation or allow travelers to fly freely like before the virus hit.
Don't believe all stats...
The makers of the game, "Fortnight" claim that they have 350 million users in the US. Last time I checked with the US Census, the population figure was 320 million. I guess the company uses modern math? Go figure! Be save. Be positive. Be with His peace.
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