Must Have: Union EV Credit

Ever wonder what do these phony politicians argue about behind closed doors? Complaints, mostly. They are directed at the "other" party and where to get money to get reelected. With the truth exposed, every once in awhile, they do the job that they were elected to do. At the moment, the give and take is with the infrastructure bill. There are many points of contention, but we at Evolution feel the tax credit to help the US automakers develop and sell electric vehicles should be a slam dunk. It isn't! 

Plus side...

more than 100 US House reps have asked the house Speaker Nancy Pelosi to keep a $4,500 tax credit for union-built electric vehicles.  

Negative side...

this is not even close to 20%. 

Where's Biden?

He talks about the "green" revolution, but this is an example of putting action before words. He talks about helping the middle-class. Our automakers in this country are still unionized. All the outsourcing is killing our middle-class. All the manufacturing jobs that have grown in the US has been in the South with the phony meme, "right to work." They are anti-union. The jobs pay better than what is available in these states, but those workers will find out the hard way when management looks elsewhere for cheaper labor. However, that is not the point. The reality is manufacturing has dropped to 12% and still falling. Union manufacturing barely holds 7%. These facts don't need Ivory Tower research. We can see it in people exiting retail and hospitality jobs by the millions. People are sick and tired of jobs with no social mobility, no benefits and no future.

Case in point

State sponsored entities receive government backing in money with rules and regulations along with tariffs. Yet, these same officials cry fowl when the US offers subsides to industries. The problem lies in capitalism. It is slow to react. How about space? In 1957 Russia scared America with Sputnik. It has taken almost 65 years for capitalism to join the party. Back in the day, China was a peasant society. With state sponsored money and help, they are on the far side of the moon. The US invented the phone, but our greedy CEO's in telecommunications show no US firm with 5G capability. They do buybacks but no R&D. The US invented solar, but lag in the industry. We don't make wind panels or solar panels. Our anti-union stance not only kills our middle-class, but social mobility and future economic growth.

Flipside

When government offers contracts, the speed line to invention and innovation is put in place. Consider Eli Whitney? He got one of the first government contracts. He put the money into R&D. He developed interchangeable parts. This tax credit could go onto develop better batteries, a cleaner environment with better electric vehicles. We need this!

Who is Against?

Tesla, because it is non-union. All foreign automakers like Toyota, Volkswagen, Honda, Hyundai, and Nissan Motors. They are lobbying hard. Can you put two and two together?

If the Democrats and Republicans don't include this necessity, but continue to throw wasteful money to the military, our nation will fall further towards 3rd World Status...By the way, there is a clause to end all tax-payer credits after automakers reach 200,000 units sold. I would amend this to continue with one exception. No US tax credits for foreign automakers of electric vehicles. Bottom line: We will find two truths about the two political parties. Is the Republican call to make America great again with made in America for real? Is Biden's campaign speeches on jobs and the middle-class just BS? Time will tell. Peace.  

Problems = Questions = ?

 - Sometimes the questions are easy, but never the answers.

- Sebastian

Question: After the Cayman Islands, which country has the least transparency in financial matters?

You might think China or some Middle-East location, but the answer is right in front of you like a misdirection magic trick, the US. Money corrupts and we lead in this sad category.

Question: If new car sales dropped 25% in September and countless retail firms cite product shortages as well as labor problems, how come consumer advocates say spending is strong?

Because the media is controlled with few newspapers to provide real answers that go against the status quo. Consider the latest economic report from Washington. The Labor department announced only 194,000 jobs for the month of September. Then, they followed up by saying, unemployment dropped to 4.8%. C'mon! You know that this is wrong. The media and government has lost touched with reality and the common man. There are 5-million less jobs from the same period one year ago. How long are we going to put up with this BS?

Question: If the US debt is such a concern, why doesn't the dollar decline and sharply?

Because the global community has increased their debt levels at the same time and due to the same problem, the pandemic. Global debt is reaching 260% of world GDP. The US debt level for 2020 hit 107% to GDP. All nations need and have to have low interest rates or the game will be exposed. This is why our founding fathers chose gold as our currency. In a sad related story, the US Congress plays politics with the debt ceiling. You can only "cry wolf" so many times. No one is hears the call. This could blow up one of these days.

Question: If taxes provide more revenue for government, why doesn't the US raise taxes to lower our deficits?

No one wants to say this truth because they fear that they will not get re-elected. One place to start is from a recent report that shows the richest 1% have more wealth than the entire US middle-class. Another report shows the rich void taxes on a yearly basis of $163 Billion with loopholes. We say close them.

Question: The recent quick fix on the debt ceiling pushed it down the road. Does any other nation have this problem?

The only other nation that deals with it is Denmark.

Question: Everyone is talking about inflation. Fed Chairman Powell has been shown to be wrong about his "transitory" nature of price rises. Now, the Fed is using the old playbook of magic and misdirection. Other Fed Governors are taking the podium like Chicago Fed President Charles Evans to deflect the pressure. He backs Powell by saying not only will inflation subside, but fall below the Fed's 2% target. By the way, he does not provide a time table for his claim.

Our answer comes from many sources. Bridgewater's, Jensen joins our chorus by saying that he not only fears inflation, but stagflation. For those of you not familiar with the term, it means little or no growth and higher inflation. Wood Mackenzie reminds us that rising energy prices find their way into our electric bills. This winter those bills will be much higher. The EU reported that energy costs hit a 13-year high for the 19-member group. Overall, their inflation grew at 3.4%. In the US, grocery managers report that only 70% of their orders are filled. By deduction that means 30% of product is short in supply and will result in a higher price. Even the Labor Dept. added wholesale prices rose 8.3% in August year over year (yoy).  Shortage of truck drivers and refrigerated transport resulted in a 10% rise in prices, especially in meat, eggs, milk and pork.

Question: If inflation is evident, how do banks respond?

Quick answer is to raise fees, but there is a bigger concern. The banking industry uses a playbook that seeks financial stability. When inflation appears, some assets get distressed. Banks are not ready for this change in the economy. Problems are under the surface like loans based on asset price. If banking issues arise, the Fed will show its true colors by coming to the rescue. They are the lenders of last resort (LLR) and market makers of last resort (MMLR). 

Dear Reader, as you can see there are many questions, but honest answers are few and far in between. Peace. 

How Long...

are we going to listen to Chairman Powell and his lying band of corrupt bankers, the Federal Reserve? No one needs a recap on their formation. The most influential banker of his time, JP Morgan got a weak man, President Wilson to back the idea. Ever since, the banking industry and big time Wall Street houses knew that the Fed had their back. This means no matter how reckless the two are in their investments, the worst that could happen to them was to come out even. The Fed allows them to privatize the profits and socialize the losses. 

Flash Forward

We all felt the effects of COVID-19. As the government added stimulus to ease the pain, demand slowly grew. However, the pandemic had more than the physical virus. It had the effect for the healthy. Parents did not want to risk having their children in confined spaces. Teachers felt the same fears. The example spread throughout economies. People who worked at ports or on ocean carriers felt the same danger. So, we have a problem of worker participation. 

Result

We got shortages in supplies from toilet paper to masks. As the economy strengthened, other areas like computer chips, parts for phones, cables, etc. showed the same limited supply. Basic economic laws went into effect: More demand with less supply = higher prices. This appeared around the globe in 2020. Our Fed Chairman avoided the issue. He made his first response in February of this year. At that time, he claimed the shortages and resulting inflationary prices would soon recede. When June came around and inflation persisted, Powell said "This is transitory." Last week, he cast the blame on the virus. It is frustrating. He goes on to say that inflation could stick around well into 2022. How many times being wrong is enough?

We say, "BS!"  Hey, we are not the only ones. There are people in power who realize the same thing. However, they do not have an answer or courage with their beliefs. They are terrified to suggest a return to the constitution which said Congress decides currency issues. They fear a catastrophic effect to banking and the global community. The most that they will do is offer a name with the hope that this convinces the public that they are aware. They have a solution. They have the right horse to lead the agency. In the meanwhile, everyone and every corporation will suffer from inflation. This adds risk to the stock market and the economy. There is confusion. Here are some bylines...

Robert Kiyosaki, the best selling author sees a market collapse this month. One site that we frequent is Stansberry Digest. They have people who give all sides to the market and economy. Dan Ferris is a Bear. Steve Sjuggerud believes in the "melt-up." Doc Eifrig is neutral. Our Sebastian sees this: When 7-stocks control 25% of the S&P 500 that is rigging that is manipulation and that is deception!

One serious reason why we hate the Fed is debt. Debt is not transitory. It not only grows and looms over an economy. It compounds to make the burden heavier each year. At the moment, our government is running the worst deficits in our history. The addition of more stimulus will only compound the effects. It is not that we are against the infrastructure proposal, this should have been done thirty years ago. We want ways to pay for the plan. We should tax the rich like Eisenhower did after WWII and close loopholes. We end all foreign entanglements which would allow us to cut the military budget and of course, End the Fed!

Poor Leadership

Our society is being negatively effected by continuous deficits. If the government can do it, why not them? People are buying stocks in the belief that they can only rise. They are following influencers. They are buying on margin. Margin debt is at a record and approaching $1 Trillion. There are more options being sold than shares of stocks. Keep in mind, the majority of options end up being worthless. While people are in a buying mode, 60 ships sit in the LA harbor waiting to be unloaded with no timetable. China has Evergrande and rolling blackouts. Inflation for August came in higher than forecast at 3.6% while our government offers a 30-year T-Bond at 2.06%/ Lies! BS! One other thing. That wrong forecast is typical. Case in point about our so-called "experts." I watched a PBS piece on SpaceX. Behind the scenes, the experts at NASA and the Pentagon were mocking Musk (Tesla CEO) in 2002. They said he does not know what he is talking about or anything about space. We forget who these people were except for one point. They are always wrong! 

One other thing...

The above quotes on Chairman Powell were taken from a summit. Guess where? In Europe among the ECB people. These central bankers meet all the time and yet, they are considered independent. I consider this collusion. By the way, no one at this inflation meeting presented the UN report showing global food prices up 31%. No one talked about the fact that the 1% (richest) avoided paying $163 Billion in taxes while all nations suffer deficits. Did they even mention how the 19-members of the EU had inflation of 3.4% with energy (Europe still uses energy in their formula) leading the way? They did say that they agreed with Powell that inflation would soon recede. "Birds of a feather..." We say, End the Fed!  Peace.

Odds and Ends: September 2021

- Where jealousy and selfish ambition exist, there is disorder and every foul practice...

- From a letter by the apostle, James

This monthly piece usually highlights tidbits on interesting news. This month, the aspects of the news that is interesting, carries over into October. We have the continuous coverage of the pandemic. We now are told that even vaccinated people can catch the virus. The booster will help, but healthy people with a good immune system is the best protection.    

We have Evergrande Group. In China, you can have an monopoly. This real estate developer is so big that the numbers are off the charts. They are the biggest in the world. They have pushed out paper and investors around the world have bought. First point - the founder is a gambler. He expanded into electric cars, solar and who knows what else? The company has $300-B in liabilities. It only has $15-B in cash. They had a bond payment due last Thursday for $84 -B. The Chinese government "suggested" that they pay. Keep in mind in China, the government owns all the land in the country. The real question is about default. If they fail to meet their obligations, who else will suffer? How large will the contagion grow? Finally, real estate is 17% of China's GDP. The firm will have an additional 30-days to come up with the money. I think the corruptness of state sponsored entities will show its face. If not, Houston, we have a problem, especially if the derivative market is connected. 

We have the continuous unemployment problem that here at Evolution, was highlighted earlier in the year. It is persistent and the proof shows in the low participation rate of workers. 

We have more and more corporate firms like Nike, Costco and FedEx complaining about higher costs, the supply chain and labor shortages. The Fed Chairman keeps saying that inflation is temporary. How long will he stick to this script? Does anyone ever challenge him or the Federal Reserve? We do. We say it all the time - End the Fed!

Speaking of the Fed...

They made their notes known after their last monthly meeting. Along with the BS on inflation, they talked about their techniques to combat the I-N-F word. The thought of them ending QE surfaced recently. The chair stated that some time in the future, possibly in June 2022, they will end tapering. Sebastian predicts that they are trapped. They are already offering "negative" rates when compared to inflation. They failed to raise rates when they had the opportunity. Why, you ask? Because in the last few recessions, the Fed was able to lower interest rates to stimulate the economy. Today, at .25%, they have no working room. They trapped themselves with their old playbook of low rates and printing money. Someone suggested the "bond vigilantes" will surface. I don't think so. Again, why, you ask? Because the Fed buys almost all the treasuries. No one in their right mind will offer to buy falling rates. Yet, there are speculators who do. One more time - why, you ask? Because they can make money as the rates fall lower than their purchase price. They know the government will return their capital. The return is not as important as the loss of capital. This game is ending too. The Fed is trapped!

Second opinion?

How about Doctor Doom? Roubini agrees with us. He recently stated on the Firing Line, "The Fed trapped themselves in this super cycle of debt." He goes on to say that the Fed is hoping that they can rollover the present debt by the effects of inflation like in the 70s. 

Rigged?

When you have buckets of money as well as government connections, one should step back and observe the big investment houses. There are 100 large caps in a Bear Market. Yet, the big shots on Wall Street are saying that 35 of them will soar. The others will rise to neutral. How about this firm that Vanguard, Geoge Capital and others are buying. The question is why? The firm just announced it lost $6.8-B for the third quarter. The virus negatively effects its future which is clouded by more debt borrowing, share dilution and losses. They are parlaying an old adage on Wall Street. Find a firm that is rising while the market looks tenuous. This is a form of rigging the market and especially, most of these big shots bought at lower prices. They are only leveraging their investment and trying to fool you.

Bond Market

is showing all the negative influences of the Federal Reserve. Junk Bonds are lower than the normal range of the 10-Y note. Investors are flocking to buy any of the 1900 issues that are available. By the way, at least 700 of these are rated distressed. How about this? The last high on US bonds was in February of 2020. It has been straight downhill since then. This is why some investors have bought, however, the margin is gone. Of course, the Fed could change course again and introduce a "negative" rate issue. They have no shame! Again, We say, End the Fed!

China

has outlawed cryptocurrency. For an atheist nation this is God sent. Good for China. 

What would you do?

Last week, there were pictures of border police on horseback using straps to push back Haitians from sneaking over the border in a rural area. People jumped on the police for brutality. The way I see it, there was NO brutality. The police asked the immigrants to turn back. They did not. The police did not charge into these people, seeking to cause harm. They showed restraint. The strap is only symbolic. It is not that harmful. The illegals also showed restraint as no one sought to fight the police. This is just another sad day on our Southern Border because all the critics do not have any solutions other than condemning those caught up in the problem.  

Change in Europe

As for now, the Social Democrats' won a narrow vote. They need to get partners to form a controlling bloc in Germany. They have many questions - immigrants, Brexit, gas pipeline, EU and their economy are all up front. We will know by the end of the year.

One more report...

Investors use a guideline of three "Red" flags in investing. Is the liability to asset ratio less than 70%? Is the total debt divided by shareholders under 100% of equity? Is the cash ratio to short term debt in balance? China's Evergrande Group fails all three tests. For-warned is for-armed. Peace.  

Another Agency, Another Deception

When someone puts forth an idea to collect data or correct a wrong, they are usually seeking to do good. The opposition which is usually the status quo, seek to limit the power of this new agency. One of the ways they neutralize a bureaucrat is by appointment. When their puppet achieves power, they have that person nominate their type of people to run agencies. This is the same basic flaw that is inherit to the Supreme Court. I reveal this in depth in my unpublished work, The Evolution of Democracy: the Book of Multiple Ideas and Predictions.

As for the bureaucratic agency, they learn the ropes to stay in their cushy position by playing politics. An administration makes known its focus. The agency responds by supplying data that falls inline to the administration's liking. They do this behind closed doors. They adjust their data or the components for the data to get the results that keeps their job. This is another sad aspect of democracy. 

Last week...

the bureau of the Labor Department released their monthly report on inflation. It showed that inflationary pressures are subsiding in August. The Federal Reserve will use this to "prove" their position on inflation. It is transitory.

At one time in my life I would say to myself - yes, I see inflation. However, the people in the know say it will be temporary. This type of report would calm my nerves about rising prices. With time one gains experience. My experience shows that you cannot trust politicians, big money and bureaucrats. Let us consider the report by the Labor Dept.

Did you know...

the data collected did not include 20% of our economy? They do not mention their data has a but and it is a big butt. That's right! Just like the Fed that lies about everything, especially inflation, the Labor Dept. does not include online sales. The Fed does not include the three necessities of life: food, energy and shelter in their matrix formula. The Labor Dept. does not collect data on internet sales. This component has grown every year and it now makes up one in five sales for consumers. Sales online have increased for 15-straight months. So, let us check what is happening in online sales.

Adobe Digital

reported that merchants are raising prices.  They complied data in many categories. It shows both increases in price as well as declining prices. Here is a sample list.

Apparel is up 5.52%... Non-prescription drugs is up 4.68%... sporting goods are up 3.47%.            There are increased prices for medical equipment and supplies, furniture, appliances and pet products. 

Declining prices were in office supplies at 1.53%... books at 1.61%... electronics at 1.82%.              There were big declines in toys and computers.

Here is a quiz. Guess which category the Fed Chair will use in his next speech? Whatever your choice, I bet it comes from the declining side of the equation.  

Global Issue...

inflation is becoming a world problem. We cannot show all aspects with limited space, but we chose Australia. Why, you ask? The nation does the most of its trading with the Pacific Rim. We concentrated on housing because the construction of a house has many components across all areas from copper and lumber to appliances and paint. Housing prices are up over 14%. This means many components cost more and as a result so does the house. Keep in mind that we import most of our stuff from China and the Pacific Rim. Also, we admit that we don't know every agency in the global network, but we tap common links like the United Nations. Its latest report on international food prices shows the global community is paying 31% more as compared to last year. The Fed will never mention global food prices, but here is another sad statistic. The US imports more food than we export. Youza! 

In another report by Data Trek Research, it says that US food prices have grown by 8% since 2019. So much for transitory inflation. One reason is the imported food. The same report shows imported food prices have risen 0.6% in month over month and 10% year over year. One culprit is shipping costs. The other culprit is lack of tariffs to protect American farmers. Our nation should never import more food than we export. What agency tells us these facts?   Peace.

Walmart, Housing and Inflation

Did you know that if you take a job at Walmart (WMT) that after 90-days, you are eligible for free college tuition? Amazing, is my first reaction. Then, I thought. Why the change of heart? Walmart added a slogan, "LBU." It translates to Live Better U. They say that they want to provide education so  their workers have a better future. When did this epiphany happen? Was this humanitarian, Christian charity always just below the surface of corporate dealings? If so, why didn't it manifest itself when I was collage age? Surely, the profits were always there. It is simple...today,

Workers Needed.

When you think about it, one realizes this corporate giant was always against unions and employee benefits, but did not have to bow down to labor when there was always more workers than jobs. Actually, the equation has not changed, but the virus has changed labors view of risk - work is temporary and life is permanent. 

Prediction

Some Republican think tank will come up with this stimulus idea. If a firm offers higher education, the government will give that firm tax credits to cover the costs. This is is how the GOP (Guardians of Privilege) thinks. By the way, Target (TGT) announced a similar school program. 

Of course, big money is hoping that technology will come to its rescue. With AI, they could get by with fewer jobs because they would need fewer people. This is the continuous tug of war between the Haves and Labor. The Haves problem is compounded by the virus. It has caused workers to miss work. The result has caused disruption in supply chains whether at a factory or in transportation out of a plant. The complaints about the virus is behind all the noise over vaccination. The outlook is cloudy. Why?

Demand...

It never really went away. However, the supply is lacking. We all see the outcome in the final analysis, the price. It is up and up for everything. 

Inflation comes when demand exceeds supply. It comes when your dollar declines in value. It comes with poor leadership. The US has the worst in all three ways. It has the Federal Reserve. They have already been shown to be wrong on all levels. The chair, Powell has revealed his poor decision making in his answer to the question of inflation. His timeline went from soon to months and now, to the end of the year. If he was referring to the physical year, it ends next month. Of course, he will "clarify" that comment to mean 2022. 

A Daydream...

If I was questioning the phony chairman, I would ask him about the "transitory" inflation as it pertains to housing. It is up 16% year-over-year. Can you even figure out your last ten years of wages to see if they rose by 16%? Probably not. This leads to one of your biggest costs...

Housing and Shelter

Housing is not about to change in price even if another recession appears. Why, you ask? Simple: housing construction vs. population growth. The US birth-rate is low, but immigration is off the charts. We build roughly 1.6 million new homes a year. Population grows by 150,000 per month. Demand exceeds supply. This is not a yearly forecast. This has been going on over a decade. Pent up demand is way too high. The high price for homes allows the rental market to also raise prices.

Housing and shelter will continue to rise, but the real danger is that we become a rental nation. Society will lose their respect for private ownership. This is central to our nature, our American dream and constitution. Our nation needs to build more homes, period! We need to address the stepping stones of real estate and home ownership: the starter home, the family home and retirement house. However, the other side of the coin is costs. Demand will add to inflation. Demand will make resources more expensive. One idea...?

Thin the Forests!

Push logging again in our vast nation. We make wooden houses. With cheaper wood we bring the price of lumber down. At the same time, we cut down on wildfires. However, we at Evolution would not want to see clear cutting. Whole sections of the country with just tree stumps. Do the cutting right. This means planting new trees for the next generation. America needs a better future. Peace.

GOLD: Now, More Than Ever

The title expression is not new. It has been repeated countless times throughout history. When the Persians threatened the Greeks, the meme was heard. When Attila was coming to Rome, everyone was made safe due to the Pope buying off the threat with gold. No matter what or who controls government, people would always horde gold because they knew in a crisis, it could save them. 

Change is constant...

was the genius of Heraclitus. However, even he would admit that gold retains itself, no matter how much time passes. People, from early civilization understood that you cannot carry your house to move if danger beckons. Anyone in California who is threatened by wildfires can relate to the point. You can carry some possessions, but if bandits appear, they will steal them from you. However, you can hide gold to deceive the thieves. Wherever you go, it is recognized as value. It will buy you food and shelter. It will allow you to start again anywhere on the globe or 50-states. It is the security of the ages. 

Founding Fathers

were good, honest men. Maybe within each, especially the wealthy, there was a personal agenda? However, in the understanding in what they were trying to achieve, they put forth their best reasoning to lay the cornerstone for our nation. It is why gold is written into the constitution. They knew currency is the framework to create prosperity. By having gold behind our dollar, it allowed Jefferson to purchase from Napoleon, the Louisiana Purchase. Napoleon could have sold to anyone, but he wanted the strength and value of gold. It is the same principle that allowed us to buy Alaska from Czar Russia. They wanted the strength and value of gold. Would anyone sell a possession to the US today for its fiat currency? I don't think so. And that brings us to the heart of the title. 

Sold Out!

President Wilson sold out the nation to influential bankers to create to the Federal Reserve. The Fed was an idea of the rich to protect themselves from "Black Swans." All the BS about mandates and purpose of the Federal Reserve is just that, BS! It is like the magician who uses deflection to take away your eyes from his deception. At the moment, the machinations of the central bank is catching up with them. Our central bank takes its cue from Japan. As long as Japan can continue to "play the game" the Fed can do the same. The problem for Japan is twofold. One, they are not the world's reserve currency. The global community can continue without the yen. Two, their aging demographics. The Fed governors know that the US is the world's reserve currency. It like holding an ace in your hand as the down card. The Fed's real problem is debt. It has to be repaid. As it grows, it multiplies due to compounding. We are at the inflection point. The point where society is realizing the danger in the dollar due to its shrinking value. Inflation is not rising prices, but the less purchasing power of the dollar. The more dollars printed, the less value they retain. 

The "Promise"

is all that stands behind fiat dollars. When you have something to sell, (read export) you seek the best price for your product. If the return value in the transaction keeps declining, the seller will demand more for his product (read inflation). Sellers are losing confidence in the promise of the dollar. 

Biden's dilemma

Some of his spending plans are very much needed. His problem is money and using it without having any. You print it. This is debt. He has to fight Congress that is overly influenced by the banking industry and the military. These are the enemies of America. At least, the America that our founding fathers gave us. The freaking military has dominated the federal budget ever since the Cold War. The rich have bought their influence to suppress workers and unions. Outsourcing is a form of suppressing labor. Our government is not in touch with our citizens. It is the central root to the January Insurrection. Even those who are aware of the dangers in debt, see no other choice than to continue to play the game until some financial crisis erupts to change the game. This is where the Fed is directing us. 

Old 5%.

As long as I can remember, banks would pay you 5% to deposit your money with them. The excessive money printing by the Fed ended this way of life. It should have been an alarm to our falling standard of living. We have been declining ever since. We are no longer in the top twenty in living standard. Our schools which is our future is also declining. Covid-19 exposed the US manufacturing decline. We cannot even produce masks! Everything is imported. We are import dependent. Tariffs can help stop this bleeding. Tariffs will cause inflation, but it is the correct medicine to stabilize our economy. When things balance out, tariffs will help the middle-class to grow again. We, at Evolution could talk a book on the subject. The Fed has turned our balanced economy with its best feature, social mobility into a bar-bell economy. Rich (weights) on one end, nothing in the middle and poor (weights) on the other end.

Now getting back to interest rates. If they were to return to 5%, our country would collapse due to the interest due on past debt. It would consume almost half of our yearly budget. The military is not protecting America, they are bankrupting our nation. The Fed is destroying our currency. Together, this leaves you, Dear Reader, to your own self survival. You need to prepare and the charts for those of you that are so inclined, are reinforcing the call for gold - now, more than ever. Before that, think about the following.

Building Collapse...

was a tragedy in South Florida. If you allow me to use it as a metaphor to what the Fed is doing to our dollar, there is a perfect correlation. The condo was built on reclaimed ground. This is the Fed introducing a reclaimed currency, fiat. When you build on solid ground, your foundation is strong. The Fed took our strong foundation and applied the principles to fiat. You can't fake foundation. Cracks began to appear in the condo like 1929 in our economy. The Fed supplied patchwork repairs like spackle on a crack to smooth it over. To all, the fix appears to work. It hasn't. Why, you ask? Because the foundation is sand or "promise money." The dishonesty of the board like the Fed as things are under control is a lie. One night the moment of reckoning appeared. Down went the building. One morning, the news will announce a financial emergency. It could be derivatives crashing, loans not paid that causes a contagion within the banking industry. The list is long. It will be like when FDR said you no longer have the freedom to own gold. The thought is heavy and fearful, but no government can stop what people of the world know. Gold is honest. Gold is valuable. In a crisis it can save your life. Sadly, people died not even knowing at the moment, why it was happening to them.

Hammer...

Gold ended the month of August with a hammer under candlestick charting. This is super bullish. Maybe the Fed takes their cue on fiat from Japan, but traders thank the Japanese for candlestick knowledge. Gold is above its 200 and 50-day moving average. The precious metals market is in harmony as silver also moved above its moving average. Reread our past articles to locate which miners we believe will do best before the prices rise to high and you can only hope for a pullback. You might not get the chance.

History is on gold's side. When you buy gold, you know what you are getting and what it is valued. Gold can be exchanged anywhere in the world. It is liquid and portable. In these dangerous financial times, you give yourself an option for security. You can't put trust in politicians. When did they ever keep their "promise?"