A quick note this morning that should come as good news to the bulls.
Despite the HUGE longwave economic mess we’re in, the latest H.6 Money Stocks report from the Federal Reserve shows how the Fed has deftly reduced their money print rate at M1 to prevent the market from prematurely peaking.
And as the data suggests now, we should see a healthy and upward moving market through summer. Let me show you how to read their data:
The H.6 report has two parts to it. The first one is the oldest 90-day sliding window:
Look at the first line: TO April 2018 means (bankers are obtuse, like this) that the data is through the end of March. See how M1 creation was running a paltry 1.4 percent annualized? That is why the market didn’t move higher in the period from the first of February, or so.
But, now they are back to stepping on the gas, again. Look at the M1 in the most recent sliding window:
Now you see the rate of increase in M1 is “back on track” and that means there will be plenty of dough about for companies to fund their stock buy-backs and such.
All of which would argue (to the monetarist in each of us) that with lots of money back in the game, Modern Monetary Theory says that the prices will remain under control…at least for a while.
Options Day, Higher Open
The futures were up nearly 60 points with two hours to the open.
But already, we can see the distortions of MMT in play. While it seems like there’s inflation, when you look at gold and silver, it’s nowhere to be found.
And we have expectations that the metals could continue a good bit lower, even though there is inflation of the money supply.
What’s going up are all the things you need: Gasoline is heading for $4 bucks in many places, shortly. Food continues to escalate. This has been partially hidden by thousands of manufacturers downsizing their product boxes. Noodles, for example, all used to be one pound (16 oz) but now it’s all 12 ounces.
Sure, it could be argued we ate too much before, but the main thing is that even the honest efforts to keep apples and apples won’t work when the whole grocery chain is being priced around.
Makes it hard to know what to buy…even Bitcoin is down to $8,100 which means there is a chance of going down much, much lower/. Still, coiners can take heart in the idea that until new post peak lows are set, there is still a strong bull case in the charts.
We don’t play with cryptos – or nitro – either.
Digital Rights Versus Google
There is much talk on the web, if you know where to look, about a DBR 0- digital bill of Rights.
Essentially, the idea of the DBR is that companies have no inherent right to use ANY PERSONAL INFORMATION ABOUT YOU without two things: Your CONSENT and COMPENSATION TO YOUO FOR THAT DATA.
This why companies like Google are trying to move into TOTAL DATA COLLECTION before the digital revolution gets legs and people start to shut down corporate own data collection built into operations systems and applications.
So, yes, we tend to block cookies except for named sites like Amazon and out bank and trading accounts where cookies are used. But wholesale spying on our searches?
Shepherding the Sheep
Speaking of which, Google News’ lead item when I looked this morning was all about the royal couple marketing slam. Harry and Meghan will be rehearsing.
The way I see this is social programming at the highest order – to teach people to cower and kneel to “authority.” Ure’s truly doesn’t buy it…since everyone in my country is equal and we’re all peers of this Realm. But, for people programmed into submission by the uber rich, have fun.
Bring knee pads.
Waiting for the Hillary Report
We find it sort of odd that although an Inspector General report on Hillary in the 2016 election was completed Wednesday, it isn’t being released yet.
What concerns us is that timing of a controversial report like this can be done on “non-news” time. That is to say, if it is released in the wee hours of a weekend morning, there won’t be many people around to comment, dig deeper, and so forth.
Also, there aren’t as many eyeballs watching the news – so it could be better for the democrop is this is timed to cut them some slack.
We shall see, but a BIG PRESS CONFERENCE WITH LIVE COVERAGE seems more fitting. Regardless of content, by the way.
But, has the Deep State cut yet-another deal to keep the swamp full?
16,000 sealed indictments are still floating around, says the internet rumor mill…will this be used to smoke out a few more?
Front page of the NY Times? No mention of Clinton on the front page when I looked. Ditto the Washington Post. Bupkis in the NY Post, too.
So, here comes a long-awaited report on Hillary. Is the NE mainly liberal Clintonista/Obamanista backing media playing this “straight?”
Somehow, we think if the story was about Trump (not Hillary) there would be wall to wall live coverage with a countdown.
Meantime, CNN (which we’ve called [somewhat jokingly] the Clinton News Network) continues its marketing of the Mueller team.
Never stop selling, huh? Just like the old Yellow Pages ads…
Marketing Dead People
Quick! Let’s find some dead people and monetiZe them!
I’ll be back Monday with adventures from the road…
have a grate weekend!