Troubled Tuesday: BRICs Thrown, Trade, and Elliott

Remember the movie, Jaws Where that dandy theme rumbles as you can almost see the mega shark?  Cue that up on the hi-fi because, brothers and sisters, the world has changed overnight.

BRICs Thrown in WW III

Specifically, the World (and drivers for WW III) became clear a couple of days ago when the story China’s central bank, BIS set up renminbi liquidity arrangement crossed.

Today, we’re tracking the ripples as media are beginning to connect the Big Dots on this:  How China plans to counter Dollar’s Reserve Currency status using Yuan pool.

Hegemony or Gangland Murder?

The mainstream (thus far) has not caught on to the simple notion we’ve been planning on since 2001.  That’s when a colleague and I figured out there are absolute limits to the debt-loading of a fiat (paper) currency.  That that debt loaded buck in your wallet or purse.  It’s worth just over 3% of what it would buy in 1913.

See, when a currency is NEW it has about zero accumulated debt.  This is why a one-dollar steak dinner with all the fixings and a sharp knife even existed when the Fed was created in the depths of the winter congress back in 1913.

Sad to report, that’s really when – in our simplistic view – the fuse was lit.

As the accumulated national debt is loaded into “money” the purchasing power declines.  More debt?  Less value is retained by money.

To be sure, the one-dollar steak which had risen to $1.79 in 1926, and which was still holding $1.74 when the bottom fell out of the economy in 1929, had fallen to just $1.31 by 1933. $1.29 in 1935.

Even more important, however, was that massive economic damage had been wrought on the country:  In World War I, more than 100,000 Americans were killed.  It was a brutal slugfest in the trenches.  More than 23 million were injured by some accounts.

I could cite minutia like this all day, but our 2001 work got to the idea that the theory-driven maximum duration of currency debasement should be 83.5 years, plus or minus election jiggering.  Surprising to both of us was that the Dollar continues as strong as it has in recent times.

Unless of Course…

Unless we consider that so many dead, wounded, and angry Bonus Army veterans were demolished by the Depression that the 1913 “incept date” was changed up t0 a later date, like 1935.    That was the Depression bargain window for steak dinners and consumer goods.

This is a worrisome concept to consider.  Because that means the “run of the dollar” could have lasted until 2018.5.

Still, the band on the Titanic has played on; fueled by “free money” as interest rates were by then (2018) in freefall.  A long-term view of the 10-year Treasury reveals that indeed rates bottomed – temporarily – in 2016.  Dropped to around 1.488%.

But then, a funny thing happened:  Rates began to rise and too quickly.  That was promptly put to bed – and an even lower wash-out low interest in the range of 0.653 percent were ushed in by the release of Covid-19.  It’s all rather graceful and all more than scary.

Economics? War by Other Means

This bottoming of interest rates has been played out on multiple levels.

The “first world” countries, led by the United States, used this (artificially thanks to Covid) extended interest rate bottom to rollover as much of their national debt to lower interest rate, longer duration bonds.  The public was cared-for with “free money” which may be thought of as a kind of Works Progress Administration issue.  Except it was via vaccines and shut ins.

the problem has evolved post-Covid however.  There weren’t enough people willing to buy the American story at the effective lower bound of rates.  So, we ended up buying our own bonds through the Fed balance sheet expansion.

Whee!  Our “music on the Titanic” has played on continuously with only a change of “band leaders” from that firebrand Trump to the old-style “conductor of status quo.”  Neither matter to Big Money.

In the global next tier down, a new attack on the U.S. dollar began solidifying this week with the BIS creating a Renminbi journal.  This provides for international trade settlement using Chinese money and is crucial to the BRICs countries (Brazil, Russia, India, China).

These countries – not being stupid enough to export their manufacturing – remain the “Up and Comers” in the world.  With sunset on American independence moving along both on domestic personal freedoms limitations, and also in economic independence, the U.S. continues into a “box canyon.”  As the walls of this canyon squeeze in on us, fewer interested buyers of American “paper” assets will appear.  We can’t make our own much-touted tech, our critical chips are in shooting range of China and North Korea, and the Buyed ’em administration can’t pass a lunch bill while the Washington Witch Trials drag out.

Which leaves only a major decline in lifestyles ahead as the powerful forces of economic determinism require higher tax rates and disassembly of the American Consumption Machine.  It was fun while it lasted, though, wasn’t it?

Second World players (Brazil and India) are in good field position to table actual increases in their citizen’s experienced Quality of Life (QoL).  Because by moving out of the dollar game – where inflation is coming like the Grimm Reaper – the fairytale of U.S. Dollar hegemony (dominance) will fade. Very short-term in the rate rise, bonds will be cheaper, and our purchasing power will hold.  But it will end all too soon.

Our outlook is that as tax rates go up and disposable real purchasing power in America declines (you go shopping, right?), the excess production overseas (which we stupidly provided by exporting whole factories from the rust belt) will be sucked-up by their own populations which are on the way up.  Thus, we see BRIC Money as potentially more solid than our own debt-loaded Buck.

Digital Tulip Wilt

One other area where the U.S. has been flanked is in digital tulips.  Because in Russia reports one site:  “…All cryptocurrency-to-fiat transactions must be conducted through bank accounts, and users must go through know-your-customer (KYC) checks with both banks and cryptocurrency exchanges.”

In China? “Crypto is fully banned in China and 8 other countries.”

India – the “i” in BRICs – is also wringing out the tulips, according to one site we checked: “All crypto (or virtual digital asset) gains will be taxed effective April 1, 2023, and the 1% TDS will come into effect as of July 1. However, on Feb. 3, the Central Board of Direct Taxes (CBDT) announced crypto transactions conducted between 2021 and April 2022 will also be subject to this new tax.” Retroactive taxation?  You bet.

No government stands without absolute control of its money.  Are we the only people to read history?

Which leaves only Brazil: And in April Brazil passes bill to regulate cryptocurrencies.

U.S. Behind the 8-Ball

All these factors bring us to this morning’s International Trade figures.  As I explained in the Monday report, imports are down two months running through the Port of Los Angeles this year (April and May inbound).

In addition to this, the Association of American Railroads tells us:

“For the first 24 weeks of 2022, U.S. railroads reported cumulative volume of 5,529,499 carloads, up 0.02 percent from the same point last year; and 6,349,485 intermodal units, down 6.3 percent from last year. Total combined U.S. traffic for the first 24 weeks of 2022 was 11,878,984 carloads and intermodal units, a decrease of 3.5 percent compared to last year.”

Could be worse, I suppose; Mexico’s rail traffic is down more than 15%.

From here – in our view – it only gets worse for many years to come.  The Dollar will perhaps reach momentary parity with Europe, but as we’ve told you before, Europe is its own economic septic tank.  That’s an ugly cauldron of megalomaniacal power-hungry, war-starting, bankster class stooges who have also made up a fiat nightmare with the Euro.  Gnomes of Zurich who schooled us talk paper but stack gold.

The U.S. and Europe may be able to continue their “leadership charade” by selling each-other’s paper assets back and forth.  But far be it from us to suggest how to extend play of this totally corrupt game.  Not my Treasury, not our print shop.

Two Global Currencies are headed into War.  China and Russia (along with India and Brazil) in one New World Order.  Collapsing Europe, dragged into war and the hollowed-out US Dollar victims on the other.  What could go wrong?

With this cheery perspective, let’s get down to data, shall we?


Before I rip open the envelope, just remember that these trade figures are tilted.  They are based on dollars.  The US is in a pop of dollar strength (*we’re paying more interest on our debt money).

Imagine the same number of overseas widgets coming in.  But twice as much money bidding for them.

See what happens?  Dollarized Trade figures DOUBLE.  Which is why container counting of Twenty -foot Equivalent Units (TEUs) down at the docks is a much cleaner methodology.

With that warning in hand:

Advance International Trade in Goods
The international trade deficit was $104.3 billion in May, down $2.4 billion from $106.7 billion in April. Exports of goods for May were $176.6 billion, $2.0 billion more than April exports. Imports of goods for May were $280.9 billion, $0.4 billion less than April imports.

Strong Dollar makes the deficit smaller – for now. We simply pay less in this window.  When it slams shut?  BIG trouble.

But there is another problem lurking – and that is retail inventory build.  People have a sense that bad juju is ahead so they may be pulling in their horns even before more (of Biden’s wrongheaded) economic impacts settle in.

Advance Wholesale Inventories
Wholesale inventories for May, adjusted for seasonal variations and trading day differences, but not for price changes, were estimated at an end-of-month level of $880.6 billion, up 2.0 percent (±0.2 percent) from April 2022, and were up 25.0 percent (±1.4 percent) from May 2021. The March 2022 to April 2022 percentage change was revised from up 2.2 percent (±0.2 percent) to up 2.3 percent (±0.4 percent).

With today’s figures and with some actuals for May out of the SoCal ports, you can visualize the “political reality gap” which distractions like the 50-year running BS over Roe versus Re-election keep most people from thinking about.

Shotgun News Analytics

Requires no particular aim – which suits us fine.

Are you still working?  Maybe a click to Should You Claim Social Security Early Due to Benefit Cuts? | The Motley Fool is worth your time.  Remember, the party line is Social Security will still be able to pay 76% of current benefits just based on current tax receipts even in 2035.  Which totally ignores the reality that we’re facing huge inflation till we get to the “fresh outta money” point.

And if there’s crappy employment (since we could be in an economic depression by then) maybe 50% of current benefits on an inflation-adjusted basis is more reasonable.  Talk to your financial planner, though a lot of them are still drinking the Kool-Aid.  (Normalcy bias, selling the highest commission investment products and so forth.  Which is all fine, but do you have a house/place to live that’s free and clear?)

Tired of Trump-Bashing?  How about Rudy-bashing? Five Colleges Won’t Rescind Rudy Giuliani’s Honorary Degrees.  Toss in pronoun silliness and the RvW pig with lipstick and we’d have the makings of a profitable media empire.

Back at the Witch Trials, meantime: Tuesday’s surprise Jan. 6 hearing comes with a bold claim. Same kind of headline-mongering democrap we heard about “Russian collusion with Trump” isn’t it?  (I mean, refried and all.)

Let’s all spend more on war! G-7 summit ends with pledge to help Ukraine ‘as long as necessary’.

Air-Based Rally still on.  But! Fund manager: Investors should learn from past bear markets.

File under Happy-Talk:  Europe’s central bank ready to ‘stamp out’ surging inflation. Sure, you bet.  Umbrella Academy finance?

All in the name of science, mind you:  We stumbled on this in our wide-ranging research this week: Pharmacokinetics of Cannabidiol Following Intranasal, Intrarectal, and Oral Administration in Healthy Dogs.  Poochie duchy research deluxe?  No.  Zeus the cat demands a parallel feline study – says it could be, um, 50 shades of interesting.

Far more useful medical note: Flu shots linked to 40-percent lower risk of Alzheimer’s onset – Study Finds.

ATR: Tastes of Youth

From the old reporter’s notebook:

So, there was this place in Seattle, years ago, called King’s Cafe.  I’m not the only one to rave about the quality of the food there.  Here’s another journo’s take on the place. Closing time at the International District’s King Cafe.

During much of my news reporting time – when there wasn’t often time to eat while covering busy press conferences and the usual urban mayhem of a bit city – two places ended up as favorites.

The “321 Cafe” across from the Public Safety Building (a/k/a the “cop shop”).  A fresh Gai’s Bakery French loaf with perfect rare roast beef -piled high, thinly sliced onion, a bit of lettuce, ‘maters, and a schmear of mayo.  Hard to beat that while thumbing through MIR reports (miscellaneous incident reports) in the press room.  While trading jabs with the dicks who came by for the fresher coffee and cuter office help. (Oh Jesus, can I even write this anymore without the threat of jail time or Correctness terrorism?)

King’s Cafe was different.

I’d usually just have a bowl of soup.  Not just ANY soup.  The “Lunch Special won ton soup” and a big bowl of Hong Kong Beef Noodles.

The waiter (Greg something) was always there with occasional things to talk about.  But mainly lightning-fast service.

This past week a strange craving came over me for the won ton soup.  Finally – 50-years after the fact – I’ve come up with an almost taste-alike that can be built almost anywhere.

Goes like this:

One package Lipton Chicken Noodle soup.  The kind where you dump the mix into 3 cups of boiling water.  Except for this, use 3 1/2 cups.  Hard rolling boil.

Into this, put in a full cup (or more) of freshly chopped Bok Choi.  Chinese cabbage will work, but not nearly as well.  The overtones of the bok choi matter hugely.

Also have ready 3-4 precooked link sausage.  Not the maple flavored, though.  Just regular.  Sliced into 1/8th to 1/4-inch chunks.

Now comes the magic:  About 3/4ths of a tablespoon of hoisin sauce.  And while you’re at it, a half teaspoon of soy (or Tamari – which is gluten-free soy) sauce.  A splash of mirin (Japanese cooking wine).

Then – importantly – a half teaspoon of oyster sauce.

A heavy half cup of very thinly sliced fresh mushrooms, too.  Tiniest shake of cayenne you can manage is optional.  Another option is a handful of (thawed) tiny frozen salad shrimp (cleaned and deveined).

Boil it all for about 5-minutes.  Then turn off heat and adjust the seasoning.  I usually end up with closer to a teaspoon of hoisin being used and a similar size oyster sauce dollop.   Occasionally, three drops of fresh ginger juice, too.

Wait 5 to 7 minutes to cool just a bit.

What you get for all this, dialed into your own (now burned) tongue, will be a somewhat close approximation of the flavor of the King’s Cafe soup.

Served with a half-pound of Chinese BBQ pork, there is nothing finer for a winter hot lunch.  If it’s an accompaniment to something else, then 4-5 slices of REAL BBQ pork go into the soup.

The tooth of this, is nowhere near original, though.  See, the sausage and the shrimp were rolled up in the won ton wrappers.  This just gets you in the ballpark of the taste.

With a three-day weekend coming up, we like to spend a bit more focus than usual on food around here, and what fun is a holiday if you can’t eat, drink, and be merry?

A small (half liter) of Ozeki hot sake is a good pairing.  But don’t expect to drive (or get much else done) for the rest of the afternoon, though.

Now it’s time to go add ingredients to the Thursday shopping run.  You’ll want that chore done in advance of Friday when the smart people stock up, and before Saturday when the planning-impaired are out.

Write when you get full,

American Suckerfish – News-Whipping Idiots

We don’t really have much in the way of expectations for this pig of a market going into the weekend.  The Dollar hadn’t moved much overnight, but suckers galore and “Buy the Dips” is often a sign of a Charlatan’s Convention.  Dow  was +220 an hour to the open.

Our focus this morning is on the U.S. Supreme Court Decisions which the libtards are getting all wrapped around the axel over.  Supreme Court expands gun rights, with nation divided.   OK, they can read.

This AP story is nominally reports the REALITY of gun rights as clearly articulated in the Constitution.  Lefty insurrections are pissed making the High Corut sitting ducks for the communist/Marxist third rail seizing in America.

Coverage doesn’t mention MEDIA MANIPULATION, as seemingly credible pollsters results are “sold” far and wide.  All part of the ongoing broad-spectrum anti-American, anti-exceptional, pro free lunch as soon as we wrestle yours away from you crowd.

Here’s an example: Confidence in U.S. Supreme Court Sinks to Historic Low (  Historic lows?  Exsqueaze me?

Our reader Len down in Oz can stand proud because on the Museum of Australian Democracy site, we find a most illuminating discussion of “national polls.”  The bottom line is they aren’t particularly accurate.  Although straw polls began in 1824, modern polling is more recent:

“Gallup’s first poll, in 1932, correctly predicted a local election in Iowa. Four years later, Gallup went against a more respected straw poll conducted by the Literary Digest, which saw more than two million people return surveys. Based on that data, Literary Digest predicted Roosevelt’s opponent, Alf Landon, would win. “

Which he did not.

Grownups, who have actually studied the polling processes know at a bare minimum polls are influenced by:

  • General location of where polls are taken:  New York will latch on to damn near any hare-brained idea.  Hillary Clinton and Donald Trump come to mind.  More centrist thinking is likely to be found in under-surveyed area. Missouri, for example.
  • The phrasing of the question matters, too:  While modern polls do go to great lengths to de-bias questions, that’s only on paper.  Which gets us to the poll takers who can spin according to their inflection and mood, too.
  • Sociology comes into it:  Seniors are more likely to vote than 23-year old’s.  So if a poll is skewed young, suspect wrong.
  • Technology manipulations have not been addressed.  A great deal of what passes as “public opinion” in this Once Great Nation is based on agenda-driven bot swarms.  These flood social media, twitter and FB and such.  This largely drives left, right, anti-gun, pro-abortion, pro-open borders with a simple click of a mouse.
  • Lower IQ voters figure into it, as well. A really solid article just two years ago explained Research shows the IQ scores of young people are now dropping by seven points every generation. Seven points is a lot, especially when the average IQ score in the United States is 98, according to World Population Review.”

The dumber America gets, the more socialist.  See it?

Considering the how much the (already Left-leaning) media puts on polls as credible news stories, the actual data offers our different view:

“A poll can get any result you’re willing to pay for.”

I actually had experience in life where we hired a university to create a poll outcome we wanted.  Fairly affordable, too.  Oh, and it worked.

Which is important to understand “schooling” tendencies of?

American Suckerfish

We don’t get out-and-about as much as we used to.  But even 10-20 years ago, people were already being blown about by media in dramatic ways.  And it’s only gotten worse.

Stories “go viral” and suck people into fear storms without reason.

One of my daughters and her hubby will be reviewing plans for an adventure trip this weekend after she makes an assessment of how CRAZY the updated Roe v. Wade decision plays when issued.

I mean think about it:  She is a typical (very smart but busy) “news consumer.”  Such people work 60+ hours a week and don’t have the luxury of “quiet time” in which to dissect and reflect on the nuances behind competing media manipulations.  And let’s not forget, Polling organizations are – at their core – businesses.

When you work 60+ you’re “boxed-in” to taking the (limited menu) of news thrown at you.  There’s no time to see how the cash flows are moving behind the scenes.  It’s like the George Floyd riots.  Social “Next Big Thingness” is really out of personal control. Riots are for sale.

Here, you come down to a toughie:  Do you live life with no fear and go where you intended anyway and do what you wanted to?  Or do you change your plans based on media histrionics?

Attacking Due Process

Rest assured, we fully expect the Left to gin-up some RvW demonstrations.  Depending on how much money Soros organizations toss in, and how much the Marxist racial dividers throw, not to mention the emergent gender blocks; yes, there COULD be problems.

Make no mistake, thoughRoe v. Wade or Gun Rights is not really the issue.

The Hidden Issue?


With a conservative Supreme Court, each of the “Adverse to Lefty Agenda Decisions” will be spun into social action. Not the least of which is changing the Court itself.  (If you don’t like the trial, shoot up the courtroom is how they roll…)

The handwringers of the Left will try to expand the Court to negate the reasonable Constitutionalists who are making unpopular decision.

But the Court – as constituted – is working just fine.

What’s all controversial decisions fuel is another power-grab.  Very October 1917-ish.

We’ll just have to sit back and watch, sadly.  Older, calmer heads are systematically ignored when the rabble of society fosters an uprising. Big money in it.  Watch your inbox.

Local is What Matters

Elaine and I are “sufficiently armed” with what’s a modest stock of small arms.  We also don’t plan to have children.

Neither does my daughter who is considering the “urban terrain when people are crazy.”  (Told you she was smart…)

My point to her was simply this: any change to RvW will have not effect on at least four people.

Yet while my daughter (correctly) doesn’t want the government to have any say over what she does with her body, I simply listen and nod as a good listening parent would.

Yet the TRUTH is government ALREADY has control of your body.  If you got vaxxed, you already lost.  (Daughter got vaxxed.)

Sure. government lied through omission, but control of our bodies really is the battle line.  It’s lost.

Not sure how “mandating” unproven vaccines (especially since The Lord High Fauci himself got Covid) how a change on RvW is new ground in body control.

Lefties will wrap it up in faux Freedom!  The reality is the right of physical self control has already been seized.  Started small – vaccinations for polio eons ago.

We expect a “shocking headline” will come along one day soon.  Telling us monkey pox has gone airborne.  Lockdown 2 is almost in sight. MANDATE 2.0 will be along shortly.

Government telling women what they can and can’t do with their bodies?  Already established; check your shoulder for needle marks.

The People (who were once nominally in charge in America) are locked in a complex War of Process with Elites who are after money, power, and rides on the Epstein jet. Pandering perv’s and worse.

This Bigger Context is carefully kept from public view.  Put-up issues and questions like “Do you believe Supreme Court decisions are fair?” are strawman issues put up by traitors in the wings.

I could go on much longer about how the Battle of Process is going.  But in the end, we can only speak with authority about what happens on 30 acres in East Texas. We downscaled 20-years ago to more honestly own our future.

We are the Early Anasazi.  Who walked away from their society when it began to fail. We just came to that realization a little earlier than most.

Speaking of Droughts

…and wrecking the world abd walking away:

Rumors of heavy thunderstorms – which could give us a break next week – have started to come and go from local forecasts.  Phantom Forecasts – dandy.

‘I’m desperate for rain’: Farmers, experts sound the alarm on a potential Kentucky drought.”  And hydro electric plants are in trouble in Italy as record drought there continues. While monsoon floods kill in Bangladesh.  Good grief.


Dow futures are up (suckerfish?) 200-ish.  While BTC (tulip eating suckerfish?) are holding just under $21,000 at click-time.

Other than some minor Housing data at 10 AM eastern and some sentiment figures, pretty boring shit on the financial menu today.  Oatmeal trading day.  *(Code for boring!)

Durable goods, trade figures, and GDP are coming next week, so enjoy any break in the manias while you can.


You make the call…

Anti-Semitism in the ranks of the UN:  UN agency teachers urge terrorism and murder of Jews, report claims.

At the DC Witch Trials: Ex-AG Says Trump DOJ Election Note Is ‘Smoking Gun’ Proving Crime.  Seriously, now Eric, some of us did read Three Felonies a Day and know what’s going on…

The Marionette President Revelations: Biden Flashes Extremely Simple Cue Card Instructions at Meeting. Think of the crisis should “WALK and CHEW GUM” were slipped in the deck.  Anyone besides  R&B DJ Ure remember James and Bobby Purify doing “Im Your Puppet?? Biden theme for the 2024 horror story?

Cryptos have no intrinsic value.  But what a monetization, huh?  Former Crypto Billionaire Insists Bitcoin Will Soar To $250,000 Within Next 18 Months.

Useful if you’re in Chicago:  10 things to do around Chicago this week.  We’d add #11:  Duck! 

Reportorial Note:  This as the annual “how many people die in gun violence in Chicago each weekend – arguably some of the tightest gun laws in the country.  Laws criminals don’t give a shit about because?  They’re CRIMINALS.  (Don’t even try to explain that to a democrat.)

Around the Ranch: Cat Days

In our never-ending quest for genuine equality, we have to take a moment with 100+ temps coming up again today, to call these “Cat days.”

Which is because Dog Days (of summer) is not inclusionary enough for us to maintain perfect political correctness scores.

Dogs get the credit for the phrase: the hottest period of the year (reckoned from antiquity by the heliacal rising of Sirius, the Dog Star) about now.

But Zeus and Sam (the Siamese back-up cat in training whose sex we don’t know yet – might be Samantha or Samuel – in time) are spending days flaked out in their favorite spots.

Zeus is under the corn planter in the garden room from about 11 AM on – which is when the swamp cooler keeps that room usefully below outside temps.  While Sam is under the bottom stair up to the BBQ deck.  The concrete pad there is in a well-shaded ares and always somewhat cool.

I mention this so you can update your thinking to “cat days of summer” from “dog days of summer.”  And thus, we can all virtual signal to the animal kingdom and become viral heroes of social media. At least in the void between our ears.

(Now, where’s my meds)

Write when you get rich,    Click the comment link to toss in a dime’s worth.