This headline makes absolutely no sense unless you read our twice-weekly Peoplenomics.com reports. Over there, I occasionally will discuss trading in non-dollar terms.
For example, a trade I have on now (which may produce at least the fries when the market opens down a bit) may pay off upwards of 194 Quarter Pounders next week if we’ve lined up on the decline just right.
People – by and large – are stuck when it comes to Money. They don’t eat money, turn on the smart phone to read money. On average, people don’t wear money, either.
The point of confusion is Money is merely the handy screwdriver we use to trade in useful things.
As I’ve told you many times before: You know a society is crazy when a shopkeeper will trade a jug of perfectly good rum for used pieces of paper.
But that’s how the American Delusion has rolled.
Seebohm Rowntree (flipping to Wikipedia here)…
“…was an English sociological researcher, social reformer and industrialist. He is known in particular for his three York studies of poverty conducted in 1899, 1935, and 1951.”
Caused quite an uproar with that 1935 report because he said not including rent, a British family during the interwar period needed about 43 s. 11 d. to survive.
He generously included a few ciggies and some provision for commuting in his estimate.
Understanding money – as we attempt to around here – is made almost impossible when going back into history because of changes that governments bring along.
For example, you may have forgotten that prior to 1971, there were 20-schillings ( s.) to the Pound Sterling and 12 pennies ( .d) to the shilling.
Point is, Rowntree figured during the British side of the Great Depression (which was global, remember, due to the trade wars), it was costing what would be (in 1935 just about 3 Pounds per week to live.
Of course, like the U.S. the Brits have been making up money – a kind of globalist disease – so in order to figure an idea of what poverty levels were like then, we could apply the U.S. inflation from 1935 to present (which we’d estimate at 17.89 times).
And eventually, Rowntree reduces to a middle-of-the-British Depression family of four basic eating cost of $67 (YSD) per week in modern times.
That was then and this is now.
But you might tuck that away for future reference: When our bloated, insanely overprice/over-valued markets finally return to reasonable levels (like a yield of dividends in the 5% range( implies a market price of about 25% of what it is today.
Except, it will be worse, of course.
That’s because the dollars chasing stocks are not coming from primary goods producing jobs.
Instead they come from mostly savings of people working in the Service sector.
Which (you’re thinking “Thank God!”) gets us to the first real data point of the morning: That delightful fiction called Personal Income and Outlays.
The press release, if you please?
“Personal income increased $57.7 billion (0.4 percent) in February according to estimates released today by the Bureau of Economic Analysis.
Disposable personal income (DPI) increased $44.6 billion (0.3 percent) and personal consumption expenditures (PCE) increased $7.4 billion (0.1 percent). Real DPI increased 0.2 percent in February and Real PCE decreased 0.1 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
Here’s the knee-slapper part:
Personal outlays increased $7.5 billion in February (table 3). Personal saving was $808.0 billion in February and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.6 percent (table 1).
Send us comments in response to “Do YOU know anyone who saved 5.6%?”
We all need to go huff some whipping cream, know what I mean? It’s one of those whipping cream and ViseGrips mornings…
OK, how does the market initially digest this?
Futures are down only 13 for the Dow…
Just don’t forget, your long-term savings goal, family of four, is $100 per week for good for the 8-10 years a Second Depression could last.
$52,000 in checking ought to about cover meals. Assuming a bunch of asterisks: No bank collapse, no bail-in, no limits on cash assets, no institution of digital money, no government taxing of savings…it’s a terrible list.
You’re almost better off going down to the gambling boats at Shreveport, LA. or taking a junket to Las Vegas, when you plan this far out.
Or, you can follow our lead and start denominating everything in your life by Quarter Pounders….which unlike paper money, actually do have some intrinsic value. At least for their first 3-minutes of existence.
A few weeks on, paper makes a comeback.
Troubles of Trump
NY Times today: “Michael Flynn Offers to Testify Before Congress in Exchange for Immunity…”
Attention State Department Wanks
Ooops…wrong T. Rex file…
I mean t to grab the WaPo report how “Secretary of State Rex Tillerson spends his first weeks isolated from an anxious bureaucracy…”
Oh, the embeds and nasty nest of neocons who can’t spell the word TEAM? And mostly installed by which former president?
Arrogant Pricks of Europe
Who me? P:issed? You bet’cha.
I told you when the State Department (neocons) were off baking cookies in Ukraine that Vladimir Putin was seriously pissed – (if not driven to grab Eastern Ukraine as fast as he could( – when the Megalomaniacs of Brussels announced their vision of a “Trade Block spanning from Portugal to Vladivostok.”
We referred to the EUJJ as a den of arrogant pricks because it is customary, polite, and may avoid wars, if you talk to people whose country you plan to steal (or hornswoggle) in advance and don’t drop it on them in a press conference.
So: Did the Arrogant Pricks learn anything from that gaff?
Hell no, of course not: Temporary and Convenient Remorse. Their stripes show again as now they’re back as:
If you’re not keeping up with class, this repackaged Hitlerian mindset is why the Brits have the good sense to trigger Article 50. It’s why a lot of other countries are – at the regular peeps level – wanting to get out from the madness while they can.
Meantime, the megalomaniacs are still pretending to “be in charge” as outlined in “EU offers Brexit trade talks, sets tough transition terms.”
Fools! This is a damn DIVORCE. The EU doesn’t get to continue spousal abuse (of the UK) once their mate has quit the union, so to speak. Who are these EU people?
Well, now that you ask…The European Union is a collection of bankrupt countries in serious denial about their plight.
What they’re doing is similar to the US federal crime called “check kiting” (explanatory note in a sec). The E.U. is still trying to “gobble up new countries before the old and existing liabilities and commitments catch up…”
Which is how Turkey ends up in the E.U. Turkey is 97% in Asia. EU really means globalist power grabbers.
[Related (*in my flimsy and simple mind): Checking kiting from the U.S. Attorney’s Manual: “If a bank insider is involved, a check kite can be prosecuted as a misapplication under 18 U.S.C. § 656, see United States v. Wolfswinkel, 44 F.3d 782, 786-87 (9th Cir. 1995); United States v. Ness, 665 F.2d 248 (8th Cir. 1981)(defendant bank officer arranged for insufficient funds checks to be paid out of the bank’s funds in violation of bank procedure); United States v. Cades, 495 F.2d 1166 (3d Cir. 1974), or possibly under 18 U.S.C. § 1005. A check kite may also be prosecuted as a bank fraud under 18 U.S.C. § 1344. See Wolfswinkel, 44 F.3d at 784-85; United States v. Giordano, 489 F.2d 327 (2d Cir. 1973).
The distinction we would offer regarding behavior of the EU is that what they are doing is similar because there is an insider’s representation via the G20, you see?
Replace the word “check” and call it Country Kiting and you’re back caught up with the class…]
Is it proper for me to speak so harshly of the economic war machine in Brussels?
The E.U. is living proof that the farther government gets from direct election, the worse it becomes.
You’ll see that the E.U. has encouraged the Muslim Reconquista of Europe for crazy reasons.
The business logic goes like this: Since we can’t rope in a bunch more dopes by expanding, let’s rope in more victims through wars and waves of refugee inflows.
In the immortal words of Monte Burns (from the Simpsons) “Excellent!”
Say, you don’t think the EU seriously wants TEXAS and OHIO do you?
Vitamin C is Great
Note to Peoplenomics Subscribers
Remember many months back when we focused on the upcoming major warfare expected between Amazon and Walmart?
Well, check out the article at Recode: “Amazon and Walmart are in an all-out price war that is terrifying America’s biggest brands…”
This weekend, our three 24” monitors plus a 32” will ALL be replaced with a UHD 55” which set us back a mere $325 including shipping and taxes.
We love to help the casualties of war and encourage you to do the same.
Don’t forget: When you read something that feels anti-Trump in the WaPo, it’s owned by the rich Amazonian and Trump is an anchor retail tenant real estater in MallWorld who mentioned anti-trust for etailers that get to big for their britches during the campaign…
Chess is played on many levels. Might we commend the Sicilian defense about now?