The phone rang.  Six-minutes after 7 AM.  Prime writing time.  Who would call while I’m  in crank-it-out mode???

Why, my consigliere, of course!

Did you see what Europe did?

“Er….looked at the DAX a minute ago…down a bit…”

No.  Remember the Facebook data breach?  40-50 million, right?  Of those only about 5-million were Europeans.  Care do guess what the EU has done?

“OMG, no telling what those pricks will do….what’d they do?”

Imposed a $1.63 billion dollar fine on Facebook.  They seem to hate American tech.  This is one  of their threats  – to attach 4% of world-wide revenue for non-compliance with their made-up “Rules.”

“Holy smokes.  That’s $320 bucks per Euro-vic from the breach…. Will EU consumers get anything off that or do th3e Brussels Sprouts pocket the vig?”

Nope…goes right into the Tax and Spend coffers of the EU, I’m afraid from the reports.”

“So how long before American Tech Companies cowboy-up and decide its time to lay a little Trumpifing on Europe over this DB-BS?”

What are the options? “

“How about American firms inset “conditions of use” –  How about:  Urbansurvival is an American website and only subject to American law.  If you aren’t an American reader, you are here at your own risk.  Howzzat?”

“Great Firewall of China might be cloned…”

“Or, it’s the first decisive engagement in history’s first Data War. Europe has been firing pot-shots for a good while.  Time to fire back?  Can America tech stand up, or like the Jellyfish Party on the Ford thing, are we just going to keep rolling over on bullsh*t and bluster?”

Short call, but important to see the larger context.

The Data Wars are developing.

Remember  the “good old days” when government only held civilian populations hostage with the threat of nuclear mass destruction?  Now, people are being held hostage over data and free thinking…  MY, what an advanced species we are, huh?

Soon, we will be held hostage for food, water, air to breathe, and so forth.  As wee see it, FB better pay or the EU could impose mean-hurtful sanctions like banning the export of Beemer and Porsche parts to the US…and that would be a South Bay calamity!

Of Course, Shiller’s Right

Don’t know if you caught the CNBC piece “This bull market run has echoes of the late 1920s, Nobel Prize-winning economist Shiller says...” but the article is worth your time.

In our work, although we may have a short-term pullback after yesterday’s “NAFTA-Reloaded” Rally, the longer view is that we could see a present bubble continuation into next year:

I mean that question (in the chart) seriously:  What is left to burn? Consider the following:

  • The Federal government has allowed for a massive stealth inflation to take place since 2009.
  • This inflation has continued to erode the QOL (quality of life) such that most people are finding it ever-harder to get by on a single paycheck.
  • This means the 40-hour work-week is essentially dead.  You either work 60 for some tech outfit and get decent pay, or you work a sucky day job and a couple of “side-hustles” to make ends meet.  Where do you think all the labor for Lyft and Uber has come from?
  • Side-Hustle business models are on the rise.
  • And in terms of disposable household income, when you take out the home equity, whatever you have as auto equity is likely illusion.  And, do you really think pension promises will all pay off?

Which gets the government back to the Big Problem at hand.  With another Trillion mark rolling over on the National Debt shortly, government is “writing check” that only the Tax Chattel (us worker-bees) can back.

See the CNS News story “In FY 2018: Debt Up $1,271,158,167,127; Feds Borrowed $8,172 Per Every American With a Job” for a sobering perspective.


America is “running out of things to monetize.”  And when this  uber-macro-bubble – that has been blown up since 1933 – making it 85-years old, and right in line with our long-wave maximal currency inflation model (ideally 83.5 years) what we have to ask is “How soon does all hell break loose?”

The answer, near as I can figure, will be after the elections and maybe as late as next summer.  But, there are a couple of way things can fall.

Say,, for example, it begins to look – based on polling – like the Jackass Party will be the Jellyfish Party at the polls.  What would that look like?

Well, for one, there would be agreement on NOTHING – no budget, no spending, and Trump has the balls to call out the do-nothing Congress.  He can sit on spending that doesn’t go his way.

The Jackass Party, knowing the Jellyfish Party as being spineless, will launch of multitude of “Investigations and commissions” to look into largely made-up allegations.  Still, sinc e Jackass Party members are anti-everything (and they can’t read a P&L so good) they will continue to mistake rhetoric for action.  Which they have been doing since the debt-bulging fraud of a Great Society was foisted on the country….again because we have been running out of things to monetize for a good long-time.

This is why we see things like the Ford lady – after making largely unsubstantiated claims – has become a cause d’ celeb and has seen over a million-dollars raised in her name.

So, as long as commercializing of victims is working, the “show can go on.”

But at some point, we run out of things to monetize.  Al Gore monetized the Weather.  BLM monetized Black.  #Metoo monetized sexual advances.  Churches have monetized getting into heaven for centuries, so why not everything else?

So, we monetize gender-change.  Despite the fact, as I note in my latest book, there’s not a five-year old on Earth who (without sick f/u’ed parental coaching) says “c ut my wee-wee off and make me a girl…”  Are you Kidding?

Speaking of the book, by the way: From Amazon:

Thanks for ordering and no, I have no idea why the system didn’t fix the typos in the book summary…maybe that’s something we could monetize, huh?  Quick, let’s start an IPO for this breakthrough in “new monetizations…”

Point this morning is Shiller’s right.  We think Next Spring may be the top of the tops, but if the libs in high places in investment outfits (the richer you are the more lib you can become, check with George Soros for details on how that works…) decide to crash things in time for the election (because the spinless Jellyfish Party takes credit for the stock market), then so be it.

For now, the global picture is turning a bit.  The stealth inflation hasn’t hit gold and silver yet.  But once again, speaking of digitizing everything, Bitcoin is at $6,540 today proving that yes, digital tulips can be monetized, too.  Print you a bouquet?

US stock futures showed the Dow down about 66 at the open.  With Europe down about twice as much (on a percentage-wise basis) we would expect the Dow to end the day down 100 points, maybe more.  NAFTA-Reloaded is cool, but it’s not going to fill in the hole we dig daily in the Federal budget debacle.  Shiller knows it, I know it, you know it, and yet, here we are.  All watching the Compound Debt Monster rising up before us and pretending that hyperinflation isn’t coming to save us.

Which is why we still think things of durable value are worth investing in.  But depreciable paper assets?  Not so much…

With that off my chest, we can now get into the details.

Later on this morning, though, look at auto sales, which will be out shortly, as an indicator of how that part of the economy is going…

Quips and Quotes

Wankels for wankers dept: Mazda confirms return of the Wankel rotary engine in 2020/  Sure, but will it turn up 24,000 RPM?

We knew this one: Gartner Survey Finds Talent Shortage Considered A Top Risk Among Executives.  Yeah…most don’t have anything….duh.

The not-so-stealth inflation we’ve been telling you about: CoreLogic Reports August Home Prices Increased by 5.5 Percent Year Over Year, Homeowners Expect Sale of Current Home to Fund .

Melania’s on the road: Melania Trump arrives in Ghana, 1st stop on Africa tour.

Looking ahead: Global stocks turn tail as Italy angst grips Europe as the US Dow looked to open down 60, or so.

Can the hype continue or will people learn to read the calendar?

We will resume the quest for outsized profits on the side for subscribers tomorrow.  Meantime, off to scramble the rest of the day…