Producer price report came out on Wednesday and in just one month was up One percent. Which – annualized – pencils out to somewhere north of a 12% rise. Compounding is not our friend. Even though seniors will be doing less poorly relative to hourly workers, thanks to “Social Security recipients may get biggest cost-of-living bump in almost 40 years – CBS News.”
OK – that’s the good news. The BAD is that in order for there to be a six percent hike in Social Security, the reality out here on the street will be more than that. Hedonic price adjustments – look it up some time.
Grand Theft – World Edition
OK, sure, no one has mentioned this before, but the BUR (big ugly reality) is that the World has been in a virtual no-growth mode for some time. Not that it hasn’t been made to look like growth. But it’s not. Just seems that way.
Growth, understand, is measured by long-term stable metrics, not buggered and jiggered by politically-driven adjustments. Half of Accounting has been thrown out.
See, in Accounting, there’s a fundamental grounding in manufacturing in Units. This means costs and units are inextricably intertwined.
But – here in the Second Depression – the strategy has been a Stealth Depression.
Remember: Depressions have to destroy savings, so it will be very hard to hide from economic pain in times just ahead. Best efforts might be trying to figure out how they will screw you out of your net worth and then proactively make moves to reduce such projected economic schemery.
How “Stealth Depression” Works
The Big Lie (Emperor has no clothes kind of thing) that no one talks about is that the number of people working is not increasing. Here’s the total payroll employment for recent years, right off the Bureau of Labor Statistics website:
Here’s what the data is screaming: We had more people working in August of 2016 than we do right now. (There’s a reason Slow Joe has the border open…more people must mean more jobs to these clowns…)
Sure, we can blame the plandemic. But we also blamed terrorism in 2000-2003 and “TBTF” banks in 2008-2010.
“Air Bridge” Economics
The way around fewer people working, paying taxes, and churning out widgets is to simply make up money. Which the Fed has been doing remarkably well. They simply make up money by re-borrowing it from themselves.
Against this backdrop, we get Stalinesque economic reports with fabulous gains. But not when we look at units and not when we broadly measure total national Quality of Life. A few are making a killing which the working class (under $40/hour) continue to get killed (financially, but let’s see how the Zombie plan works out…)
In the meantime, in place of genuine industry – which could have included On-Shoring and MAGA – we have opted for Industrial Hate. Everyone’s debating CRT and gender and should a 5-year old be subjected to queer notions in school?
The longer-term goal (accompanied by a triple-serving of white-shaming) was revealed in the story this week about how “U.S. State Department invites U.N. racism investigators to visit U.S. | Reuters.”” Right! Like a non-U.S. racial Inquisition will solve anything? (“Come on, Man! Don’t peddle bullshit on us…”)
America used to be about EQUALITY. Same schools, same math textbooks, same entrance scores. Gone! Khrushchev does end up burying us. All the Soviets needed to do was hand us the shovels and hand out freebies to people like Bernie.
Lost, child? This all has its roots in the Marxists of the 1960’s who decided that in order to grab power they would need to “divide and conquer.” So, every racial and religious group you could think of was cleaved. Turned into haters. All that needed to happen next (and I witnessed this in Seattle politics close up and personal as a news director) was the orchestration of “persuasion blocks behind one candidate, or another.
Dirty Politics 101
Dirty politics is based on divisions of race, religion, national origin, education, income, gender and so forth. Clean politics is singularly focused on issues and solutions and was last sited in a flyover country school board election in 1947.
All that is Horribly Gone, now.
It was “Quad Chart Logic” at it’s finest. Here’s how it works:
Congrats! You can now be a political consultant. (All “candidates” are basically the same schmoes, so I misspelled one, lol).
To WIN any election, all Caddidate A has to do is move everyone who votes into the grey boxes. B will lose every time. Especially if Canddidate A fills in a racial checkbox, a gender checkbox, a national origin checkbox, a religious checkbox, and a low IQ voter district checkbox. (May I present? The Squad!)
Problem with populism (as Trump learned) was that if a country (or any political division, for that matter) is divided (racial, economic, religion, national origin, gender, or not, party and so forth) elections degenerate into serial lies, false representations and a matter of micromanaging “the messages” to move people into the gray boxes.
The Press, however, has become so infiltrated with (basically communist, but let’s call them…) advocating socialists and they want to be in charge of everything. News used to report the story. Today they frame the story. Reporters, anchors, and networks value social media (itself tampered with) over clean (unjudged) facts. Advocacy journalism is fiction writing – a FACT not-disclosed to the sheep.
Sweat equity and skill don’t matter to the candidate or press. It’s a winnable and losable manipulation – nothing more. THIS is how the macro world is ACTUALLY running.
The big problem for the democrats, is that we are fast-approaching “get in a box” time for voters. If another lockdown comes, regular people may see (in droves) that Joe is NOT the Covid Savior. Which is why he – and his ilk – are willing to pay people, hand out Lotto tickets, shame, and censor (with the help of the equally liberally deranged socialist media) in order to get the Vax numbers up so they can NOT lock us down again. Dems lose then.
Because if there’s another lockdown, then people will climb into different boxes because Lies are remembered.
The Market’s Conundrum
Early today, the stock futures were down nearly 200 points. And Bitcoin has busted under $32,000 (remember who said $28,000 and maybe lower?) while Lumber keeps on “splatting” – down when I checked to as low as $604.
Whee! Ure’s lumber collapse so I can rebuild our almost 20-year old deck is right on schedule!
Thing is: In order for the Fed to inflate our Nation out of depression and collapse they have to a) keep making up money like crazy and b) keep not only the U.S., but also “hot money” from other parts of the World believing the ongoing fairytale.
Lots of foreplay today, but it’s important to have an overarching logical framework to hang the skeletons of news on… So, with the framing revealed (skipping the governments vs. corporations vs. crime cartels and Russian mob contexts and the future of CrimeCoins with the Internet at risk of collapse as a competing framework and thought paradigm, the call is whether to use the political framework or the competing crime syndicates model as a basis for a rational worldview.
For today, political model and we’ll try Curtain #2 tomorrow. Buckled-in?
OK, lots of theory, so here are some fresh data points for your repertoire.
Philly Fed Data
“Current Indicators Remain Elevated
The diffusion index for current manufacturing activity fell from a reading of 30.7 in June to 21.9 this month (see Chart 1). Thirty-three percent of the firms reported increases in current activity this month, while only 11 percent reported decreases. The majority of firms (51 percent) reported no change in current activity. The current new orders index decreased 5 points to 17.0 in July, while the current shipments index fell 3 points to 24.6.
New York Fed Empire State Manufacturing:
” The headline general business conditions index shot up twenty-six points to 43.0. New orders and shipments increased robustly. Delivery times continued to lengthen substantially, and inventories expanded. Employment grew strongly, and the average workweek increased. Input prices continued to increase sharply, and selling prices rose at the fastest pace on record. Looking ahead, firms remained optimistic that conditions would improve over the next six months, with the index for future employment reaching another record high.”
The price index for U.S. imports advanced 1.0 percent in June, after increases of 1.4 percent in May, 0.8 percent in April, and 1.5 percent in March. Prices for overall imports rose 11.2 percent for the year ended in
June. The June 12-month advance followed an 11.6-percent increase from May 2020 to May 2021, the largest over-the-year rise since September 2011.
And for those dumb-enough to keep applauding Slow Joe for killing pipelines and coal – American Energy Independence in general – eat this part:
“Fuel Imports: Prices for import fuel advanced 4.7 percent in June following a 5.5-percent increase the previous month. Higher prices for petroleum and natural gas contributed to both advances. The price index
for import petroleum rose 4.6 percent in June, after increasing 5.4 percent in May. Natural gas prices advanced 8.1 percent in June following a 7.9-percent rise the previous month. Prices for import fuel
increased 85.1 percent from June 2020 to June 2021. The price indexes for petroleum and natural gas rose 87.7 percent and 72.3 percent, respectively, over the same period.
Weekly New Unemployment Claims
Just ahead: Industrial production and a Jerome-speak. All of which could lead to market turd-moil.
Dow -146, Bitcoin $31,644. With ERvil offline, we expect something really large/grand/elegant soon. That could drive up the CrimeCoins complex.
Let’s Hang Skeletons!
Political framing today? Republicans ramp up pressure on Biden to pull nominee linked to eco-terrorist plot. Aw gee…
Biden is still crazy on bordering: Jayapal says Democratic budget package includes amnesty for millions of illegal immigrants.
Group hand-wringer d’ jour: How A Spending Bill Without The Hyde Amendment Could Reshape Abortion Access. Let’s imagine something and then turn it into a pseudo-fact, shall we? In some other TMI from the same hot-button site: Gillian Anderson Is Anti-Bra Now: ‘I Don’t Care If My Breasts Reach My Belly Button’…yee gads. Makes dieting at breakfast easy, huh?
Want another bizarre medical story? Brazil’s Bolsonaro Hospitalized After Hiccupping For Over A Week. (What, he not moving enough vax product?)
Truth to Commies: Seattle mother explains how to protect kids against cultural indoctrination: ‘It is war’. The war part is right, but political thuggery, racial division, anarchy, gender confusion, open borders….well…you sure that’s what Culture is? Over here on the far, far side of 70 “culture” used to mean…”..the arts and other manifestations of human intellectual achievement regarded collectively.”
Obviously, I need a trip to Re-Ed and a round of rocks and hammer to fix me up. Send a gift-box assortment of hetero, White, and college educated shame along, too. It’s all for my own good.
What do you say I go break some rocks and we try to become a screaming Libtard and historical delusionist tomorrow? Maybe Lobotomies to Go has a Thursday special? If I take Zeus the Cat maybe we could get a 2-for-1 coupon deal?
Write when you get rich,