We are looking for the markets to react to Fed Chairman Powell’s speech which will get underway about 8:45 AM Eastern.
In advance, the Wall Street Journal was saying “Fed Chairman Jerome Powell’s Approach to Interest-Rate Policy Wins Bipartisan Backing.”
Tomorrow on our Peoplenomics.com subscriber side, some notes about Fed rates and where markets head.
And the Consumer Debt report (they call it “credit” because the bankster class are “creditors”) came out late Monday.
In the report (here) we can see that we can see that the Consumer may be back to hitting what we describe as super-saturation, again. That is evidenced by the growth of credit going up at an annualized 4.3 percent in Q1 2019 which is down from 5.4% annualized in Q4.
Moreover, another indicator that consumers may be “smartening up” is that the annual rate of increase in consumer spending on the revolving side (e.g. credit cards) was only up 1.5% while more useful (durable) things ucategorized ‘non-revolving’ (school loans, mobile homes and such) was still going up at a 5.3% annualized rate.
Another interesting point – which I’m sure our bond trader friends ( Don Bondi) will find curious is that the 48-month car loan rate is again ‘inverted.’ 5.5% for a 48-month loan in Q1 versus a 60-month for 5.24%. Normally, the shorter the term of the loans, the lower the rate, not higher.
Such inversions cause the bond traders no end of lost sleep these days.
Going into the Fed Chair talk this morning, the Dow futures were down about 100.
From the FINRA 4210 pattern day trader (Gee, who might that be?) the question is whether this is a sell the rumor buy the news situation. If Powell pleases, we see blue skies into mid August for markets.
What would we love to see? Just the right speech and a moonshot to take the Dow into the 27,000’s and the S&P into the 3,000’s. That would get Trump off his back, the market to the annual highs window, and who knows what else?
This still leaves several interesting problems on the table.
First, is the consumer becoming ‘burned-out?’ I know when we go out to the store (or whatever) we look at brand new cars which mostly carry a $45-thousand price tag (and up) for what we drive. Then one of us will remark something like “Meh…still four wheels, a motor, with air conditioning and power windows and locks. But we already have that….So what would we be getting for $45-thousand less the trade-in?”
Sure, sure, there are some improvements over “Old Reliable” our 2005 Lexus. But is “auto-following with braking” and “lane change assist/warning” and a back-up camera, worth draining retirement savings of $35-kilobucks? I bet you can figure out the answer to this without too much help…
The second consumer problem is, after a car so you can get to all five jobs in the NGE (new gig economy) is What Else do you need? Futons and memory foam mattresses are cheap. Sure, I’d maybe like one of those new steam-ovens for the kitchen to pop out the perfect crusty loaf. Truth is, we’re out of counter space until I get around to the remodel of the kitchen…
Needs around the house? Electronics are past full: – eight computers, plus 3 Kindles plus an iPad and 4 big screens, three WiFi networks. Seriously….what else could we possibly need?
You see, this is the kind of economic fundamentalism that really drives an economy. Whether to raise rates, or not, is less the issue than “What will people come ‘out of pocket for?’ BTSOM
The answer, though it’s still verging (as in being on the verge) is the new ‘mixed reality’ technology which we’re betting the Amazon-Microsoft alliance could really find a home run from. I’m on the edge of buying some mixed reality gear myself just for the geekiness of it all.
But, again, the problem is: What’s it worth? We can each already blend reality by simply living a rational like and then going to CrazyLand by turning on the news. Being able to overlay idiocy on top of our pastoral lifestyle just doesn’t seem worth $3-kilobucks in faster video card, a computer upgrade and the HMD unit.
Yet… When the mixed reality movies and the usefully high def affordable 3D layer gets here (which people like Dr. Pete are working on out in L.A.) then you bet! Where do we sign?
We want Tai Chia Crisco Warrior Exercise Demon in mizxed reality (MR-3D) which would be fun to have as another exercise in the gym. You can only listen to so much on Alexa while doing the daily hike, right?
As we noted recently on the PN side of the house, what we are doing as a culture is actively engineering to bring Dreams to the Waking State (D2WS). Not very many people have the vision yet, but when you cut out all the BS and Hype, that’s where the present cultural roads lead.
Unless we take the class/race/gender global ego warfare route. Which gets us to the second noodle…How’s that going?
Pelosi Goes White Bashing
For us you and this is abhorent. We’re just the fair-minded, egalitarian, even-keeled, salt of the earth working class. We go chasing ‘the bag’ (of money) and live a simple life.
But the political criminal classes? Bent of dividing and conquering?
This she-devil in human form doesn’t seem to understand Un-Mixed Reality (UMR) very well. When I was born, America was 85% white. Over 70 years, and without a single public vote, the liberals and lefties have conspired to increase minorities from 15% to 48%. Leaving the whites in the 60% range. And according to Census, whites will be a minority by 2045. 25-years…that’s the trajectory.
She-devils also can’t seem to read papers. If they did, they would have seen the headline “Record 60 million Hispanics in US, 52% of population growth.”
Don’t misunderstand: I love all people who want to assimilate and be part of Team America. Black, Hispanic, and especially Cuban. But when the left is fielding divisive tactics via AoC and what’s her scarf, it’s not a good thing. It’s an attack on America.
White bashing has been brainwashed into the GMG – the great mass of gullibles. It fuels idiotic SJW’s who in turn are propelled by Marxist teachers on the public dime.
A fine example? The Sky News report “Festival scraps cheaper ‘people of colour’ tickets after ‘white supremacist threats’.”
So lemme see if I got this right: The festival promoters get to be white-hating racists with punitive pricing but turn about isn’t fair play? Ah…more of that divisive “We’re all equal, except you” thinking. Which is what racism is, of course.
Not around here. ANY racism is BAD racism. There are good people of all races and beliefs and there are bad. It’s what makes Life such a long game to work through. Even after 70-years of play, I wake up and find one of the manipulators – in this case Pelosi – is trying to turn-the-board so they can cheat.
The good news is it proves one of the underlying tenets of UrbanSurvival: Stay away from bad people, keep your head down, shield your heart, and make the best life you can in a world of digital zombies. The Digital Mob Rule being pushed by the Digitlantes can get along without you.
We got bigger problem if we just think about it: The need to secure food and happiness for our families and loved ones tops the sane person’s list.
Oh, Those Clintons
We were wondering the other day: Would there be some connection found being those in the Clinton orbit and those in the Jeff Epstein orbit?
A good Reuters piece about Jeff Epstein claiming ‘Not Guilty’ to charges (you expected something else?) offers this insightful paragraph:
“Epstein was known for socializing with politicians and royalty, with friends who have included U.S. President Donald Trump, former President Bill Clinton and according to court papers, Britain’s Prince Andrew. None of those people was mentioned in the indictment. “
So for now, we’ll just skip the ratings-desperation play-by-play of the PMS (Pandering MainStream) on Epstein. But, we will pass along the shame names involved as they come out, so to speak.
Dribs and Drabs
Shake it up, baby, department: “Supervolcano fears: ‘Big One’ is coming.”
Assuming you know social media is an exploitive monetization and you and your friends…”Instagram introduces new anti-bullying features.”
“2019’s Fastest Wireless Network Crown Goes to This Carrier” Spoiler alert: AT&T.
And fort our business students: Chart: Diversification enhances profitability of marijuana product manufacturers – to an extent.
Off to another..here”s the link to the Powell remarks and do come back for moron the ‘morrow…