Unemployment will hit the Market

- Those who make religion their god will not have God for their religion.

- Thomas Erskine 

There is a lot of conversations going around about the disconnection between the stock market and the economy, notably unemployment. We agree. With that said, the market looks further than the weekly claims numbers from state offices. They also take into consideration many aspects gathered about our spending practices. This is where we, at Evolution see the day of reckoning. If you have no income or resources, your only spending is on food and possibly, shelter. We say the spending on shelter as well as energy are categories of our economy that is in flux. We see homelessness. We see people in California buying RVs. They are living in them parked on the street. This change is spreading. Local authorities are already rewriting laws to limit overnight parking on streets. They are adding restrictions to RVs and campers. The Trump administration was quick to pass executive orders to limit evictions after the eviction forbearance clause expired under the CARES Act. He does not want to hand the Democrats an easy issue to blame Trump and the Republicans. As for energy, more and more people are seeking utility assistance. They won't be needing their car to go to work because they don't have a job or want one that does not provide a living.

At present, the recent correction within the market is the diversion being considered by investors. They are taking money off the table. They will probably seek new positions after the election. This is a percentage conjunction. If the government passes another stimulus bill, the market will resume its climb to record territory. However, we see either reason as only painting over rust. Eventually, the rust stain will reappear. We see this happening in the first quarter of 2021. Why, you ask?

Houston, we have a problem.

Every week the number of filed unemployment claims is 850,000 or more. Dear Reader, this isn't even the total story or figure as you will read. There was another 839,000 weekly claims that were not included with the unemployment claims. This is due to our low-paying service society jobs. There are millions of workers who do "gig" work. They are categorized as self-employed. These workers like drivers do not qualify for unemployment benefits. They also won't be building a solid social security net in old age. This will be another economic problem for the US in years to come. Anyway, if you want a clearer picture, I refer you to the work of Edvard Munch, the Norwegian artist and his piece called, "The Scream." The Bureau of Labor Statistics (BLS) reports that at present, 31 million workers are collecting unemployment benefits. This translates to a 63% participation rate. The US has 164 million eligible workers. They say that one in five workers are unemployed. When I went to school that came out to 20%. This is the real unemployment rate. Wall Street thinks that the figure is 8.4% to which the BLS claims. When they read reports of less spending by consumers, they will begin to awaken to the truth. When the impact of rent revolts and utility assistance is constantly in the news, the market will sink like a stone in water.

People, the real number of unemployed is 40 million and that means the unemployment rate should be 25%. This is politics! These phonies create new job categories to keep the public clueless. This is not new. Check out the comedy routine on unemployment by Bud Abbot and Lou Costello. They, and their work is classic.

Other factors...

There are different aspects in our economy that no one considers or looks at. For instance, the Blackstone Group (BX) is considering a buyout of the Kansas City Southern Railroad (KSU). When mergers happen in the US, it is a calling card for job cutting and layoffs. This is only one example. There are others. How about our history of exploiting workers and anti-union actions. Recently, due to the virus, some unions have gotten the Occupational Safety and Health Administration (OSHA) to investigate work sites where infections are high as well as deaths for workers. They just levied their highest fine against two meatpacking plants, JBS and Smithfield. The pork producing Smithfield plants produces 5% of our nations total production. The fine was a joke. It had no real teeth. Sadly, there will not be any real changes. 

Seasonal Help...

will be very important this year. The fliers are already out. Michael's, the retail art shop, is looking for 16,000 workers. They need that many, but come January they will let them go. UPS says it wants (read needs) 100,000. I-800-Flowers needs 10,000. The list goes on-and-on. The deal is this. If you add up all these holiday hires, you begin to realize the extent of our true unemployment picture. 

Add it up...

There are 11 million fewer jobs available due to the pandemic. In July there were 2.5 workers chasing any job offer. This recession and the prior economic crisis of 2008 has resulted in another 5.5 million manufacturing jobs lost. This is why we cannot get a company to make face masks or PPE for our health workers. When you look out into the future the picture is even worse. Self-driving vehicles and robotics will eliminate another 7.5 million jobs. Not only will our nation be unprotected as a self-sufficient country, but it will have a serious unemployment issues for an extended period of time. Congress better put in place some measures to renew manufacturing that offer quality wages to stop the bleeding of the middle-class or the US will become a Banana Republic with nuclear power.

The only thing politicians know is how to buy votes. The spending is reckless. The Congressional Budget Office reported that this fiscal year, the deficit will hit over $3 trillion. Keep in mind, last May they said this years deficit would be "only" $892 billion. Now, you know why the Trump administration has been slow with the requested additional stimulus. They want to buy votes, but they want it on next years budget. POLITICS!

 

Elevators: They go UP and DOWN

- Those who wish to succeed must ask the right preliminary questions.

- Aristotle

Going Up 

The word elevator when used by Wall Street refers to the price action of a stock. In our sound byte world, the media will not detail the most important aspect within the word. When the stock market rallies like it has been doing since the March lows, it is a slow grind upward. It is like getting into the elevator on the ground floor. Everyone has a stop. This is the price that they are happy with their investment. The exception to this is the example of only a few riders in the cab as it climbs. These are your big hedge funds that move an individual stock, sector or an index. They can push a market higher than anyone could imagine. This is why you can get some no-name getting ink saying, "Dow 50,000." Like in many expensive high-rise buildings, they have their own express elevator to the penthouse. This also reflects the present state of the market. The market has reached highs that most would could not foresee. It is like trying to build the tallest skyscraper. The architect realizes that he will be a few feet short of the record. So, he adds a cupola or spire. He sets the record just like our stock market.

Going Down?

In days of yore, upscale buildings actually had an attendant that worked the elevator. When it reached the top floor, he could be heard saying, "Going down." This pertains to our piece on stock market prices. As stated, the up cycle is generally a slow grind with many support and resistance points. However, when the elevator goes down, you can almost feel a "G" with the force. It drops rapidly like it is out of control. This is the details that get overlooked when the media reports on the prices of the stock market on a daily basis. 

Apple and Tesla...

 are the two big dogs that have moved the market to record highs. Although Tesla is not included in the S&P 500, many expect it to be added and quickly. This aspect is deep behind their purchase. If Tesla does get added, it will be bought by funds to which will drive the price even higher. Elon Musk had this point in mind as he recently split the shares. The company was the most shorted stock in the market. They lost and BIG! The electric car company is up 435% since January and looking back, it is up 891% for one year. Wish I had it? Of course, with a PE ratio of 1088, I never would buy any stock like that. I am what the market classifies as a 

Weak hand...

Be truthful with yourself. Tesla hit a high at $502 and fell last week to $375. Could you take that pressure? This is the present state of our stock market. Dear Reader, it could get worse. As expected and indicated, the market will correct. It is possible that Tesla could retrace to its breakout price. Are you sitting? Tesla could fall to $173. Ouch!

The price of everything that you might want to invest or buy is selling at Zimbabwe price levels.  Apple reached an all-time high of $137 and closed last Friday at $120. It touched $101. Could you handle that heat? We are talking a lot of money that is multiplied by the number of shares that you bought. 

I have concentrated on these two firms because they have been the driving force for the elevator to rise. If you recall, the FAANG stock group was the reason behind the market rally prior to the flu crisis. They have been mostly range bound. Microsoft moves from its high at $232 to $204. Amazon made a new all-time high at $3552, but fell with the market to $3144. That could give you a heart attack. It can get worse. It has a high volume low at $2401. Any trade problems with China or talk of taxing internet sales and $2401 is a given. Netflix hit $575. It too is range bound, but the size is huge. The bottom of the bracket is $450. Can you see my point about prices? Everything is expensive. Always keep in mind the volume at highs and lows. The market was down 2.2% on Friday before big money scared weak hands. Nasdaq was off by 5% before making a comeback. The media was quick to say that the falling of the unemployment rate to 8.4% was behind the price movement. Our Economic Evangelist says, "Permanent job losses have risen to 3.4 million and the market has not priced this reality." Buyer beware!

Rare phenomenon 

The purpose of trading firms is to get you to buy. They are selling. This is why it is very rare to have an analyst recommend selling a company due to a negative outlook. However, we have tracked 37 analysts that follow bigger firms. The following are firms that they have designated as sells. Who is at the top of their list? TESLA.

List: Exxon, Southern Copper, Walgreens, Paychex, Hormel Foods, Public Storage, Tiffany, Occidental Petroleum, Carnival, Gap, American Airlines, Rayonier, Xerox, Park Hotels and Resorts, Chesapeake Energy, Nordstrom, McCormick and Co, and Brown-Forman.

Last thought

In trading, there is a pattern called, "Three black crows." This is where a stock shows three gaps to the downside in price. Needless to say this is not good. However, this is what usually happens to a stock with this pattern. By the way, we mention this because this pattern is appearing within stocks at the moment. Anyway, there is a short period of consolidation after seeing the three black crows. Then, there is a surge back to the original level. But and this is a big BUTT, the elevator going down comes. If you ride it down, you will want to die. Don't! Like Kenny says, "Know when to fold them!"

End the Fed!

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

- JFK

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

Second thoughts?

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

Chinese look to gain...

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

Not alone...

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

Budget numbers are out

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

Odds and Ends: August 2020

 Much Ado About Nothing - Shakespeare

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

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

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

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

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

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

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

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

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

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

Warning Signs

- Signs - Five Man Electrical Band

Sign, sign, everywhere a sign

Blockin' out the scenery, breakin' my mind

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

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

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

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

It gets worse...

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

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

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

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

Here is a sampling of the firms in bankruptcy:

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

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

Tell Two People

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

- Danny O'Keefe

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

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

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

Recap

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

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

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

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

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

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

The Myth of our Economy

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

Participation Rate

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

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

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