Like every Monday, this one started as all Mondays do; looking with disbelief at how transient the weekend was and wondering “What the hell did I really get done in two days?” and “Where’d the weekend go???”
A check of the sky, the radiation survey meter next to my desk, and noticing that the sky was still devoid of glowing mushrooms, led me to conclude that War didn’t break out this weekend over Ukraine and thus, predictable, the market ought to rally this morning until the next turd-in-the-punch-bowl shows up in headlines. 50 up at the open, call it.
I figure about Thursday the punch will turn undrinkable.
Here’s Ure’s Impeckerble Logic:
- The only major economic news this morning is a “Who cares?” housing number on pending home sales. This ought to be down, but figuring out “How far is down?” is hardly worth the calories needed to fire neurons. So there goes Monday.
- That gets us (still snoozing) to Tuesday when the Case-Shiller/S&P/Dow Jones (and whoever else wanders by) 20-City Housing Index comes around. This one ought to tell us we’re still stuck at 2003-2004 prices, but, as usual, only the top 2 percent of the assembled multitude will wonder what $100 in 2003 would buy today. (The correct answer is $77.82 worth, since to hold purchasing power of a $100 bill printed in 2003 you’d need $128..15 today.) Yes, dear, that really means something but not to the nation’s lamebrain financial press which can’t adjust inflation to save their sorry souls.
- The other tell-tale tomorrow is Consumer Confidence (emphasis on the “con” parts. More than anything, an economic realist, such as you-know-who, will use this to calibrate “Kentucky Windage” on how slow-thinking the ‘Mercian public is with all these pills in ‘em.
- You’d need to be a subscriber to Peoplenomics.com in order to hear the blood boil about the advance GDP numbers coming Wednesday.
Then we get to Thursday and by about here, we ought to figure out what “Mayday! Mayday! Mayday!” is all about because…
- Challenger job cuts come out.
- Personal Income (always a giggle) will be released along with it’s hysterical side-kick “personal savings rate” which includes (you’ll love this…) paying down credit card debt. (Honest accounting would book the depreciated value of the crap you bought, but that’s a longish rant you are too busy for…)
- This all comprises something to do with Personal Consumption Expenditure tables, which is sort of like the trauma doc’s notes on why your wallet (OK, or purse) is bleeding red all over the place. (“Change!” remember? Which, in turn, is kinda like “One born every minute” but with a voting lever.)
- Construction spending (down on single family is my bet, up on chicken coops for the poor and disenfranchised to keep ‘em in hock to The Man, I figure).
- And if that’s not enough, once the morning’s tears have been wiped away, along with come auto and truck sales just in time to ruin an otherwise pending Miller time Thursday after the Fed Money Printing Festival Revelations are disclosed. (Seems like I’m the only guy saying “Holy crap! Printing M1 here lately at almost 19%…where’s the inflation? None? OMG that means DEFLATION has really started to dig in!!!”)
To wrap up the week, we should get the unemployment rate, hourly earnings and factory orders (What factories? They’re all in China, FCOL).
Now, perhaps this is a somewhat elongated soliloquy to get to my first point: But here’s the deal, plain and simple:
Since we talked Friday, a story came out that US factories are gaining on China. In longer versions of the story, like this one in USA Today, what you read is all about how productivity is increasing in America. Which, no doubt, it is. I mean, the Boston Consulting Group is shooting straight, right?
To me, however, this is one of those good-news, bad-news kinda of stories. Why? Well, I’m sure all the productivity stories are true and yeah, sure, you betcha there will be jobs building the factories. But what’s going to be inside?
Machines. Automation. Robots.
And it sets the baseline for a deeper discussion which I’m going to keep harping on you about until you want to puke: Productivity reaching the mystical 100% means no jobs for humans. And that’s the bugger in the whole equation of modern capitalism. One of two.
T’other? If you’ve been paying attention, it is that even with lower interest rates, we have falling behind the power curve, so that compound interest still eats the global economic system in short order, which is why the New World Order clowns are all scared shitless because they know that periodic global economic depressions don’t end happily. (Look around you for signs and portents.)
While we wait for the unhappy ending (which some prescient/RV/seer types figure will be 2015-2016, the Big Slide is on and this year’s “Sell in May and Go Away” could be one for the record books. Just a hunch, mind you.
There’s no point in worrying about it this morning: This is still Monday. And like the headline this morning said in just five words and a punctuator: Sleep Till Thursday – Or War.
We’ll get to that next…
War! (Of words, so far)
President Traveler is taking time out from his Asia cuisine to announce “New U.S. Sanctions on Russia over Ukraine.” (I had leftover spaghetti this morning, but the national press seems to have overlooked my side of it.)
Poor move. On Sanctions, not my spaghetti. No, make that really, really dumb move for two reasons that ought to be obvious.
1. If you tell Russia what we’re going to do, before it is in place, then Russia will hit the push buttons on their programmed response and the net gain is nil.
2. Secondly, Russia made it through the weekend without going into eastern Ukraine, so now is NOT the time to be slapping on sanctions. Unless you’re trying to pick a fight, of course, and in that case, must be some really bad news about the economy on the horizon because the #1 reason for most wars is socioeconomic…
3. Third: Putin will be really pissed when he reads in the NY Times how the US/West is after his personal hidden wealth around the world, figures our tipster Madison Avenue Mike.
So with this (mild, restrained) analysis, let’s see what warhammer sees as he polished his spectacles and oak leaves…
George,
It is vital that leaders in the West examine all the viable motivations for Russia’s annexation of the Crimea and its apparent intent on safeguarding the bordering Eastern Ukraine. While I do not agree with all the points laid out in the article by the Guardian . .