Thank God it’s Friday, huh? Hernia surgery Tuesday was not my idea of a “good time.” But, like any other “lemon” handed to us in Life, we can complain about it being sour or we can make lemonade.
My “lemonade” offering will come tomorrow on the subscriber side (Peoplenomics.com) where I go through a long list of potential “super-healing modalities” that this particular lemon has given me an opportunity to “test.” Quest for Super-Healing is the working title.
That’ll be a four or five hour block of my recovery/work-day. And I am thankful that the Universe that has scheduled this year’s East Texas string of miserable high temps at exactly the calendar moment when I won’t be able (or interested) in working on big projects outside. Let’s get down to business…
Markets and PPI
We have one dollop of finance data just out from the Labor Department. Producer Price Index numbers give us sense of what’s “in the pipeline” on the manufacturing/wholesale side. Which, in turn, has a nasty way of showing up at the checkout counter. Here’s how it looks:
“The Producer Price Index for final demand advanced 0.2 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.1 percent in both June and May. (See table A.)
On an unadjusted basis, the final demand index rose 1.7 percent for the 12 months ended in July. In July, the rise in final demand prices was led by a 0.4-percent increase in the index for final demand goods. Prices for final demand construction rose 0.6 percent. In contrast, the index for final demand services declined 0.1 percent.
The index for final demand less foods, energy, and trade services fell 0.1 percent in July, the first decrease since declining 0.1 percent in October 2015. For the 12 months ended in July, prices for final demand less foods, energy, and trade services moved up 1.7 percent.
There is one other report out to be aware of: The Federal Reserve H.6 money stocks report for the week ending July 29, showed the annual rate of increase for M1 was 6.8% as you can see at the bottom of table H.6-2 here.
There are several aspects of the Fed M1 to be kept in mind. First is that compared to the M1 rate-of-increase in Table 1, to the end of May, we see the three-month window (annualized) was blowing off at an 11.1% rate of growth.
Given that the Fed is aiming for a 2% rate environment (for the big players, not us pip-squeaks) both of these numbers are extremely high and yet, at the same time, revealing.
The numbers through May (the 11.1% pop at M1) screams that the present rally in the market (despite the down-tick in the past 10-days) has been fuels by “free money” – but again, not for little peeps.
The drop to the 6.8% rate in the closer-in 90-day window says the Fed is about done with puffing up the market. The recent market high came on 7.26.19 in our Aggregate view of things.
As a result, one could argue, we may have seen the last of the blow-off highs in the stock market, but there are still a number of “wildcards” in play.
For one, as the rest of the world slows a bit (and some economists including Ure’s truly see recession in sight), the way ahead of mired in side-issues and gobbledygook.
Practically speaking, the market pull-back on tap for this morning could be viewed as a “normal retracement” following the big upside pop yesterday. Yet under Elliott Wave theory, we can’t be too certain about the future direction of the economy forward until the retracement is complete.
You see, under Elliott, if we go back and set new all-time-highs that would be very bullish and would auger for another multi-year expansion of the economy. That’s a long-shot, however. More likely would be the alternative count which would have our Aggregate Index possibly hit a 75-80% retracement in the next week, or so, and then down we’d go this fall. Jury’s at breakfast.
With that, it would be a Wave III down ready to appear – if it happens. An end-of-year rally might ensue. After that? Elliott fifth waves can be large and should one come along late next Spring, it would steal away Donald Trump’s “great economy” claims going into the 2020 polling.
More Important: Personal Action
A large percentage of our fellow Americans are lost in the quagmire of name-calling (‘racist’, ‘white supremacist’ and other vulgarity designed for shock and attention, not accuracy or acuity of thought).
As a result, they are missing the most important thing people can do in times like these: Vote with their Wallets.
As we have warned for years, robotics is society will really begin to bifurcate. I know it’s hard to visualize, but where this technology-based stratification leads is to a world where there is a well-off consumer class, a lower-middle class of robotic maintenance workers, and an underclass which is self-disenfranchising themselves right now from their homelands. Then struggling to invade America at exactly the time we’re beginning to replace workers. Poor not on the distro list of future?
It’s easy enough to see when you look at the history of technological change. Why, there’s even a lens through which you can view the US Civil War as a similar human-capital versus machine-capital conflict.
The cotton gin was invented in 1794. In the days of Eli Whitney, the Antebellum South was made profitable as machinery made cottom profitable, but only with a slave class to provide “cheap pickin’s.”
The “new and improved” human slavery isn’t of a racial or ethnic type specifically. The current language is a big “hide the sausage.”
Instead, new slavery is based on ownership of debt (which is how your are “owned”) and thus control over a proportionately wide swath of humans. Racial and ethnic slavers are a truly despicable lot, and yet in an odd way, those supporting open borders are slavery, too. Welcoming in the next round of victims who will face huge obstacles as the jobs they came for will be disappearing in short order. Robots, self-driving vehicle, and financial models that indenture rather than free citizens. The “rent your life model.” Immigrants will be financial fodder in the end.
Rent Your Life is the real enemy today. The “hot lingo” is appealing on the social distraction (media) sites, but it’s not an action-oriented plan for change.
Our demise comes as Slavery 3.0 is arriving in the form of self-checkout stands and other job-killing technologies. At some point, the distractions on your phone will fail and we will be in the same rut has human history has walked in for thousands of years. We’ll be “owned.”
All we can do, both to maintain our autonomy and avoid the yoke of Debt Slavery, is pay off and reject debt while at the same time living below our means and producing what we can for ourselves.
Which is why we’re so fond of things like the Kindle version of Make: magazine. Because we have got to keep humans occupied or they will go crazy – as current political insanity underscores.
An ugly economic concept people don’t want to deal with is this aspect of supply of, and demand for, human capital: If there are more people, but no additional work, the cost of labor will go down because with 7.6 billion people you can bet someone will do your job cheaper.
Financial Engineering, however, doesn’t give a rat’s ass about the employment, development, elevation, or enlightenment of a world full of fellow souls on a journey. THAT has nothing (or at least very little) to do with what falls to the Bottom Line.
As a result, the Financial Engineers are building conveyors of wealth to the ownership class in order to hornswoggle the middle class into financial slavery, which it has (and always will) be.
We have a path to Soylent Green ahead. The challenge then becomes for the artists, markers, creators, and visionaries to see the scam early-enough that the terrible path can be avoided.
Journeys of the soul, whether via astral projection, near-death experiences, or deep meditation, all provide for “knowing at a distance” and are far less expensive than shot-gun space programs all just looking for wealth.
Next time you go to check out at the grocery store, please consider checking out with a human. We pay a little more to shop at the local grocer who uses humans and has additional humans who wheel the food out to the car for us, but that’s voting with our wallet for a world where people still have a place.
We need to begin voting on this while we still can.
Largest teachers union threatens Walmart boycott over guns in my view focuses too much on sporting goods and not enough on teaching personal values, responsibility, and what’s going on in the checkout lines where people are being replaced.
Whew! Long rap…sorry about that. On with…
A Few Things That Do Matter
OK, besides gardening and reinforcing personal independence by shedding debt while ““Render(ing) to Caesar the things that are Caesar’s; and to God the things that are God’s.” (Matthew 22:21 for the unread.) What else matters this fine Friday? Besides rendering less…
China may be trying to hack US utilities, report says. One of these days they will get it right. When they do, the grid will be “hard-down” and your only assets will be those on (and about) your person. Which is why so many people are at risk yet remain too dumb to see it.
In the NT Times today, British Economy Shrinks, a Sign of Economic Uncertainty. This is a global economic condition. Since 2000, the Global markets in our work have completed 5-major waves up, there was a Wave 1 down, and we’re at the top of a potential Wave 2 rebound. From here, the Global Wave 3 down could emerge like a fire-breathing dragon to beggar billions 2020-2024. You gonna be one of ’em? See Global Markets Tumble On Trade War Fears, Italian Bonds Plunge As Crisis Returns for more over at Zerohedge.
Absent a failed economy (yet, wait for it) the dems are still selling racial hatred. For example Joe Biden Says ‘Poor Kids Are Just as Bright’ as ‘White Kids’ at Event for Asian and Hispanic Voters. Joe’s working the race card, having nothing else to sell. But he;s talking too much about our differences and not a plan or solutions is in sight. Damn demagogues. If you don’t have a solid, workable answer, please drop out and STFU. Thanks. Time waster.
Also ploughing the racial divide: Pete Buttigieg: ‘Systemic racism is a white problem’. Dude! Check the mirror! So where’s your plan to fix? No plan? Another time waster.
The “hard sell is on” over 5G as The Feds Try To End the Debate Over 5G Health Concerns—Data Sheet.
And speaking of corporate finance, Bayer Wants to Settle All Roundup-Related Cancer Claims for $8 Billion.
Colleges Are Cutting Tuition, but You May Not Pay Less. You are, after all, the turnip and they’re after your what?
And look for the Lamestream to fill the weekend with damage pictures as China Issues Red Alert as a Strong Typhoon Bears Down on the East Coast. Which will be first to blame it on “climate” change?
OK, off to begin work on the Super-Healing article…We have UrbanSurvival articles teed up for tomorrow and Sunday as well… Dow futures down 140…
Write when you get rich,