Been up since the wee hours, working on the outline of my next book (which will be serialized on the Peoplenomics site for subscribers): “Super-IQ: Owning the Ambients.”
So the main feature today, other than the Dow futures being down more than 150 points ahead of the opening (because China will retaliate with tariffs on $75 billion worth of US goods and resume auto duties) is waiting to see how many traders will bail ahead of the weekend?
Sometimes, going into a holiday weekend, you get a bump in markets, but with all the noisy news events, that’s looking like a long-shot ahead of Labor Day.
Fed Boss J. Powell will be keynoting at the Fed annual retreat at Jackson Hole. Depending on how his mastery of ambivalence is, we could see the markets move/recover based on that and some housing data due out about the same time.
Meanwhile, however, we were interested to see the M1 print rate in the latest H.6 money stocks measure:
El Trump, in our view should STFU and let the Fed try to manage for stability because if he pushes them too far, they could crater the economy in seconds my just matching the rate of inflation and M1 growth rate. No telling how China sees such rampant money-inflation. Since they once bought a fair chunk of US treasuries, the print rate means the interest paid back is diluted…
Boy, we could be over Niagara in just a few economic seconds if we don’t see someone blink…
Call it the MUM Economy
Short for “Making Up Money” and it’s the same pantload that took Robert Mugabe’s socialist government in Zimbabwe from semi-salvageable to the Weimar-squared outcome. I continue to be a multi-trillionare (as measured in Z-bucks). For those with impaired mental function, it’s all right there in Wikipedia: Weimar Germany was not as bad as hyperinflation could get.
“Hyperinflation in Zimbabwe was a period of currency instability in Zimbabwe that, using Cagan’s definition of hyperinflation, began in February 2007. During the height of inflation from 2008 to 2009, it was difficult to measure Zimbabwe’s hyperinflation because the government of Zimbabwe stopped filing official inflation statistics. However, Zimbabwe’s peak month of inflation is estimated at 79.6 billion percent month-on-month, 89.7 sextillion percent year-on-year in mid-November 2008.”
As we’ve been writing for years: the Fed and the co-opted loons in Congress are trying to inflate like hell on the one hand while the underlying economy lapses into a Depressionary/Deflationary funk. They’re trying to out-print collapse and that’s one of the things keeping Bitcoins in the just over $10,000 range. Everything would be coming down, except the money supply is going vertical so no one calls it out.
Sure, Bitcoins are just a “made up” idea, but tell me again (except for the tax liens and jail time for tax evasion) how that’s different from FedBux anymore?
Economic distortion is becoming more widespread as a reult. That’s why you can buy a refurb’ed curved-screen monitor on the cheap and yet not be able to afford the rent.
Speaking of which, with current local government runaway inflation of taxation well-underway, am I the only one to mention that high property taxes (and usurious penalties) are turning government into the largest landlord in the world?
I mean think about it: Stop paying your property taxes and government will seize your property which means Americans are (we hate to state the obvious) “renting from the government.”
In rational times, this would be outrageous, at least to those who understand that the FedGov was founded on a shoestring paid for by tariffs. Now, since the congress has abdicated to the bankster class, that leaves government holding title (effectively) to all property. The ONLY issue is how long before they get it all. The socialist-communist outcome. But if pulled0off slowly enough… Mind-boggling, is it not?
Back to point president Waffle isn’t sure what to do, either, and near as we can figure he’s trial-ballooning everything in the policy arsenal to see what will garner the most 2020 votes. Which is why the Washington Post this morning is looking at the possibility of a faltering economy and how Trump’s muddling it.
We may have to relabel democrats to something more descriptive – like dumbocrats – as “gotta-go Joe” is saying ““We should raise the tax back to 39.6 percent” Self-administering political hemlock?
Same party is labeling everyone not of color as racists and supremacists which leads us to suggest democrats administer a little Stanford-Binet testing in advance of allowing anyone to announce aspirations for higher office on the party ticket.
I’d toss-in buck or three to see Trump’s current score, along with Biden’s, and Warren’s (my money’d be on her, BTW) on this one issue alone… Testing of shamer Beto-scam, BS, and others? Who cares?
Other than “Usual Distractions”
There are still a few things worth noticing as headline roll by:
“Eye Opener: FBI busts a global crime ring:” No, not congress. Dammit.
Xi’s blood pressure? Beijing Enraged After US Navy Ship Sails Through Taiwan Strait. Will bumping tariffs help? I don’t think so…
Mr. Foot-in-Mouth is on the move: Trump heads to G7 summit after insulting allied world leaders. It’s not a Chinese saying, but could some WH staffer please remind the book “You win more friends with honey….”
Dead Bank Walking Watch: U.S. fines Deutsche Bank $16 million to settle China, Russia corruption charges. Collusion confusion, anyone?
Ironically, in Time today we’ve clipped “How Your Obsession With Short-Term Results Can Hurt You in the Long Run” for reading when we get to it.
Longish statistical read (our cuppa) is “Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index — July New Business Volume Up 15 Percent Year-over-year, Down 5 Percent Month-over-month and Up 3 Percent Year-to-date .” Given the M1 print rate of an RCH under 10% makes us wonder if we’d really be in the 7% deflation range if the paper-runs out or the ink supplies get delayed…
Chernobyl’s Aweigh! Russia’s First Floating Nuclear Power Plant Sets Sail in Arctic. Things break when your “rushin'”
What a Way to Go: New York man crushed to death by elevator. Seems he was floored.
Continental Subsidence or Climate? As to much hype, a story about Disappearing Louisiana island could create America’s 1st climate change refugees making the rounds, are we the only ones to notice that the continents are moving and the resulting subsidence is the more likely answer to most of the “sea level”claims? You look at where marker were 20-years ago and where they are now…and the sea-level change evap[orates (so to speak) to the obvious subsidence as North America spreads out – and west.
Another environmental note: Amazon rainforest fires could devastate the fight against climate change. Obviously, climate change won’t be helped by deforestation…another oh-duh moment.. But, can a tax fix it? If we use the tax-revenue to go Soylent Green, buy Greenland and Brazil…move all people into coops…
Fail to pay that kind of scammish climate tax and into the Soylent you go… Hell there’s a tax-incentive, huh?
Off to work on Peoplenomics – more tomorrow and a good article here on Urban: “The Sunday Think: Does Food Drive Language?” Weekend brain food…
Write when you get rich,