Even if you don’t subscribe to our (darned good) www.peoplenomics.com website, this morning’s freebie is that we are in a modest downward channel that could last another week or three.
Driving this is the fact that our Global Index was down nearly 1,200 points last week, including some damage out of Asia (think Japan) and Europe where the German marked dropped below the psychologically important (to Yanks, anyway) 10,000 level.
So what does this fine week hold in store for us?
Well, the Big Picture is that the Fed is trying its damnedest to keep the market from going into blow-off mode. That’s a tall order, given that the money supply is being jacked up by about 8% annualized as of this week’s H-6 Money Stocks report.
As we have explained previously, we seem to be in an analog to the 1928 period when the Fed (by now) would have already gone for its second raise (basis the December hike).
Unfortunately, the world is so interconnected that we don’t expect much until the first week of June because that’s when the EU’s ECB will take up rates again.
That meeting is on June 2, if memory serves, although that’s a bad bet on Monday.
Shortly there after (cue Vanna White saying “Big Money, Big Money” like she does on the Shreveport slot machines) the US Fed will meet June 14-16 at which time they will look at the latest economic projections (tea leaves) and then do whatever the G20 has already worked out ahead of time.
Honestly, between now and then, short of more pension plans blowing up, the ramp up of a new war front, or an indictment of the email princess, there’s not much to snap us out of the Spring blahs.
Small business optimism (whatzzat?) and wholesale trade numbers won’t make Tuesday a burner. Bank reserves and petroleum data are all for Wednesday. Import Export prices Thursday (which will likely be bad since that’s the cost of off-shorting) and then Friday we will see how gullible consumers are when comes to Retail Sales. Producer prices Friday may get the markets a bit keyed up, but since neither of us is in the factory owner class, it’s hard to worry too much.
And that gets us circles around to this morning.
If you can contain yourself, next week’s Consumer Prices should be a lot more exciting, or what passes for that, here lately.
The Dow futures were up about 50, No, make that 20 now.
Around here we don’t worry too much about what happens on Mondays. The bigger picture – like the weekly gain or loss – means a lot more than the “hot money” coming in to scalp the retail investors.
Trump’s Easy Road
Yes, events are certainly falling his way.
This morning, he admits that under a Trump presidency, the taxes on the rich will “go up somewhat” but that’s a given no matter who wins in November. The difference between America’s gross domestic product and the accumulated National Debt is enough to mint 2-million millionaires, if the roughly $2-trillion difference could be shared around. It can’t, of course, unless you’re Chinese. And even then, you’d only be rich momentarily.
As we’ve explained before: China simply takes our bonds, mixes in a little other money from other sources and then buys property up and down the West Coast.
Buying our country out from under us seems absurd, but that’s what the data says.
Also data would argue that either a) the Chinese are really shrewd businessmen or b) Americans are complete idiots, although the correct answer is C) all of the above.
Speaking of Idiots…
And Then There’s Kerry
I thought office holders were supposed to protect us from all enemies, foreign and domestic?
Other than failing to clean out the Nasty Nest of Neocons at State – many of which have participated in the spectacular failures like Arab Spring, the rise of ISIS, the emergence of the Global Caliphate (and on and on…) now he is coming out hard in favor of the “borderless future.”
I swear, I can’t make this stuff up.
The problem in Washington is that we have been divided among extremes.
If you support the administration on things like immigration, the country will go the same self-destructo as Europe is tasting.
On the other hand, if you support the reactionary right, you end up with a right-wing totalitarian state – and borders do keep people in as well as others out.
The Truth likely lays somewhere in the middle, but the Middle has disappeared.
Paul Ryan sold out the traditional GOP values by rolling over on the budget and God knows what else. So he’s the head of the Obama Wing of the GOP.
On the other hand, Ted Cruz was a bit too tel-evangelist looking for the Middle.
What’s going on now, is the presidential candidates have to pivot to the Middle, which Trump is doing. And Hillary will try to gloss over all the sins of her radical past – and we have the emails to prove it.
All in all, it’s as we told subscribers this weekend: Make a list of all the things you really can change in your life, then see if either candidate announces any changes – then chart your financial future accordingly.
Meantime, the headline Donald Trump Keeps Antagonizing Paul Ryan reminds me that former GOP moderates (like me) are agonizing over Paul Ryan, too. Although our agony is “When did he change parties?”
Cameron’s Latest BREXIT Cheap Shot
If I were living in England, it would be time to pack up and leave. Not that it’s not a good place…or, well, it used to be.
But the idiotic social, immigration, globalist sell-out of the Isles has hit a new low this morning with David Cameron saying that a British exit (BREXIT) from the EU “could trigger World War III.”
When reading this story (and Cameron’s govspeak logic) it is important to understand the economic reality of what’s going on in Europe.
The EU and Britain both have embraced the huge migration into Europe from mainly the Middle East. Now, because the economic tide is about to change (skyrocketing social costs and political change that includes Muslims taking over London) the people at the top are trying to answer to their new masters. Muslims and globalists, if that isn’t clear to you yet.
And the (“big money, big money”) cheer squad including Hillary and Obama and whoever else, is sticking their noses into this in quite remarkable ways.
Unanswered is the question “What’s in it for US?”
I am sure there is some economic security to having a solvent Europe, no doubt. BUT the reality is when Europe is judged Too Big To Fail (TBTF) the folks in Washington will be all too willing to volunteer YOUR checkbook and mine to bail out the crooks at the top of the EU.
Yes, sadly, Europe is already lost.
Anyone with a basic sense of math can run the numbers: The immigrant birth rate is way higher than the Anglo birth rate. In time, that means social change.
But the crooks at the top sped up the process dramatically by encouraging immigration. They did so for the shallowest of ends – to short-term bolsrer their economies.
I have some very strong feelings about BREXIT – and generally speaking it comes down to this: If Obama and Cameron are on the same side of an issue, it’s time to either sit on your wallet, or pack and look up Reader Bruce down in Ecuador…because Europe is going down.
It’s only a matter of how quickly. And who’s going to get how much of YOUR money and assets on the way down. Rotsa ruck, bubba.
I will be quiet now…and wait for the first sign of a single new job from the TPP trade deal…Still waiting…
Oh, you did see where the Austrian chancellor steps down? What does he know or what does he see?
Flush with News
An Obliging Mountain
With the anniversary of the blow off in 1980 pf Mt St. Helens at hand, we thought about this headline a bit longer than normal: Rumbles heard from Mount St. Helens: Is another major eruption coming?
That could be some mighty stylish timing.