No, last night’s Pandemic speech by Joe Biden is not a State of the Union speech. As this little snip from the U.S. House website here says:
- The President “shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such measures as he shall judge necessary and expedient.” Article II, Section 3, Clause 1.
The constitutionally mandated presidential message has gone through a few name changes:
- It was formally known as the Annual Message from 1790 to 1946.
- It began to be informally called the “state of the Union” message/address from 1942 to 1946.
- Since 1947 it has officially been known as the State of the Union Address.
I could go into more, but the pertinent facts seem to be these:
- The lefty footwork lately seems to focus on the notion that Biden’s off the hook this year because it’s his inaugural year.
- The pandemic talk last night wasn’t an SOU in our view.
- The House is still behind razor wire – just like any other two-bit coup in third world countries.
- And between the Fed no longer reporting Money Stocks (the latest we have been able to find from their much hyped Data Download Program covers only to Feb. 1, there’s no question the coup/ring leaders are playing massive financial games with us.
All for our own good, of course, you understand, right?
Producer Prices in a Sec.
While we have an [actual] data series to update this morning in the form of Producer Prices, we need to disavow any belief in what they might infer.
Here’s the Investor’s Conundrum in a nutshell.
- Maybe the numbers are totally honest…
- Maybe they massively under-report deflation, though.
- Or, Maybe they massively under-report inflation.
Which one do you roll with?
A sane person (136 of us remain on Earth) would simply look up how much money the Fed has made up. EXCEPT – now the same lying Fed that hid M3 under Greenspan is hiding M1 and M3 under Powell. (For our own good, of course!)
Where goobermint seems to be headed is into slower data, less candor, more excuses as the ruling junta Makes Up Money at ever-more Weimar-looking rates.
We are – in our slow-witted judgment – smack in the mess we’ve been warning subscribers about on the Peoplenomics side for years: We are in a deflationary depression (for now) with the Fed (aided and abetted by the ‘hind-the-razor-wire clown posse) making up enough money that the Big Lie of Normal can be maintained.
Hell of it? Seems to work. But only if you don’t think deeply about money, prices, and value. A Bitcoin this morning is $56,363 and has a book value of nothing. (“Crypto Slides After CFTC Probes Binance On Derivative Trades“) Oh, and Bitcoin is still a Climate Crime.
Tesla stock closed yesterday about $700 a share. Book value per share (mrq) $23.16. You do own a calcamulator, right?
There has never – historically – been such a pile of asset-slop foisted on an entire world before. Demands a new way of thinking. Allow me to introduce?
The Steerable Circular Fizzlebunk
The process – not entirely unlike a recursive macro gone mad – works like this:
- Society used to look at itself in a thoughtful (values-based) way.
- With the computer and social media, that all left the building.
- In its place Digital Mob Rule.
- And Legacy Rulers – who create sock-puppets (AOC, Bernie, Portland, yada, yada) – and they support the radical Left (who can’t read a balance sheet).
- The Rulers – in return for lawsuit protection for the Socialist Media types – become Ruling Click Baiters.
- Steerable Clicks for a protection racket…what could go wrong?
- Well, except the promises are too expansive and expensive. Time to make up money.
- Enter the Fed. Hide the monetary data. When bad, sleazyspeak through it. Use terms like Doctor and judgment a lot. People don’t question authority nearly enough.
As we know from a certain laptop, everything is for sale. And thus, as long as the illusion persists, the media companies don’t break ranks, and the Fed keeps hiding the obvious, We the People are left riding a financial merry-go-round.
But woke and enlighted like we is: We’ll call it an ERP-like interactive, steerable, circular fizzlebunk.
Graceful – as Houses of Cards go.
So Back to PPI
Sheep release, please:
“The Producer Price Index for final demand increased 0.5 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.3 percent in January and 0.3 percent in December.
On an unadjusted basis, the final demand index moved up 2.8 percent for the 12 months ended in February, the largest increase since rising 3.1 percent for the 12 months ended October 2018.
Most of the February advance in prices for final demand can be traced to a 1.4-percent rise in the index for final demand goods. Prices for final demand services increased 0.1 percent.
Prices for final demand less foods, energy, and trade services moved up 0.2 percent in February, the tenth consecutive advance. For the 12 months ended in February, the index for final demand less foods, energy, and trade services rose 2.2 percent, the largest increase since a 2.4-percent advance for the 12 months ended May 2019.”
Where this is nutty – and economically indefensible (or definable for that matter) – is when the adjustments to the measuring units (dollars) are not revealed. Dollars in circulation are up 26% at M2 and near 100% at M1.
After the data, stock futures were up 66 on the Dow – which means like everything else – people aren’t considering watering down of purchasing power. Simply insane!
Oh, still, not really new highs yet in the Aggregate Index – more on the Peoplenomics side tomorrow.
Comes Down to This:
We might as well be measuring the economy in cubits. You don’t know if those are Sacred cubits (25+ inches), Royal cubits (18+ inches, distance from elbow to tip of longest finger of the King), common cubits, or even particle-sized q-bits. We sure as shit don’t know how much slop-money is crashing about.
That’s why the supply chain is in trouble and chips are down, so to speak.
Most people are shitty dot-connectors. So, let me help.
When Inc. is advising (via MSN) “How to Protect Your Supply Chain Against Resource Scarcity” you should begin worrying and asking tough questions:
- Is my medical shopping list done?
- Got seeds?
- Water supplies?
- World without Data plans?
- World without Power plans?
Naw – Forget It
Average people are average because they don’t question mindless media spew like these stories from this morning’s (alleged) news flow:
- Georgetown law professor fired over remarks about Black students. (Ure is so old, he remembers when the debate in schools was over “grading on the curve” not “grading on the race.”)
- Impossible to Govern(or): Cuomo governorship hanging by thread as allegations mount, police report filed, legislators move to impeach. California gov Gruesome’s recall drive hit the magic 2-million sigs mark, too.
- And as an outlier in the Global screw fest, did you notice where Twins Peak: Double Births At ‘All-time High’ Globally? Dang.
Look, I said shorter columns and I meant it. Now, go be a good little average ‘Merican and go study “Harry and Meghan: The week that shook the monarchy to its core – and what happens next.” Two grownups and a cat out here won’t waste their time.
Life is down to 7,300 days – and that’s if we make another 20-years. Useful thing to remember.
More tomorrow for the grownups (on Peoplenomics). Or, just be surprised.
Write when you get rich,