Looked earlier this morning like the market would drop another 45, or so, at the open this morning. 

Part of that is because what had been a global loosening of money has now ended, at least for a while, and that means that the Fed Meeting that begins today (announcement tomorrow) will be filled with the usual selection of carefully chosen words, but nothing will change.

I like the use of words that imply superiority…these are often used in government monetary pronouncements of monetary policy worldwide.

“The Committee judged…” is one of my favorites.  Implied is that we should “all rise” to the bait.  A closely related one (“blah, blah, reviewed the evidence…”) also gets pulled out.

A third and fourth are “concluded” (as in that’s the end of it) and “determined.”

If you’re any good with Excel, you can build your own Fed Statement generator.  Use the Random Number function to generate a word picker, which is run against a data table where the Language of FedSpeak as been carefully compiled.

Then use test handling functions (like concatenate) to build the statement.

The Federal Reserve today announced no change in its rate policy.  The Committee (word_lookup_1) the data and (word_lookup_2) that in  keeping with our (ran dom_policy_cite_1) the best possible course would be no action at this time.

Going forward, the Committee will closely watch (worry_item_1) and (worry_item_2) for any indication of deviation from target rates.

It’s actually only slightly more complicated, but you get the idea.

Which leaves the average investor (me and you) trying to figure out what to make of it.   Marty Zweig famously advised “don’t Fight the Fed”  and since Interplanet Janet (IJ)  has been doing astronomical things with the money supply, we she speaks, we listen.

You don’t need a strategic trader’s mindset, under theory Z…just listen to the Fed.  If they say overprices, then sell and go to cash, or go short.  When IJ’S FedSpeak turns to “fairly priced” then it’s time to invest again on the long side.

It’s never THAT simple.  There are all kinds of billionaires running around trying to shave money from everyone’s take (except their own) and that means things like whipping up the War Machine and so forth. 

Then there’s the whole matter of trying to blow up Greece…someone’s got to make an example of what happens when you cross the bankster because the Irish sort of won, and the Icelanders did for sure,. so at some point, the banksters need to hand out a beat down to gain back their ill-deserved “respect.”

As for actual data?  Who needs it…this is a con game, after all…but if’n you do….

Housing Start Data

Just out from Census:

“The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential
construction statistics for May 2015:
BUILDING PERMITS
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,275,000.

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The sound of an old Southern Pine cracking, falling, and taking out several smaller trees as it fell got our attention Monday afternoon around 5:30.

The winds had piped up to gusts of 35, or so, and the old tree which was home to its own little ecosystem, just wasn’t up to the task.

Normally, we’d be inside in the sun room (which is shady in the afternoon) have a libation, or two.  But Monday found us outside, sweating, and putting in some additional flashing over the sun room/to/house joint.  A month back, a semi-tropical sideways rain had moistened a spot on the sun room ceiling to wall joint.  And we had found the culprit.

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Always been fascinated by lag time and hysteresis; both of which nibble at our human performance, whether we like it, or not.

To make the discussion simple, and easy to follow, there is an electrical-chemical system in the human body take takes about 100 milliseconds to make a one-way trip to the brain.  Since a millisecond is one 1,000th of a second, 10 each means the route up to the brain is about 1/10th of a second.

The brain which is a large switchboard of automatic  responses (in addition to processing live video from the optic nerve, electro-chemical analog audio from two discreets (ears), and an impossible number of pressure sensors) then turns around the input and often fires back a muscle order (the response) and so we see another 10 milliseconds to the muscles, such that normal human reactions are on the order of 200-300 milliseconds for most activity.

We run slower on Mondays, it’s understood.  At least till we hone up the reaction times (which tend to get sluggish overs the weekend) with some electro-chemical enhancement juice like caffeine.

Interestingly, however,  caffeine is not perfect, although two cups is often very useful.

For example, in an air ambulance attendant training manual I was reading this weekend, turns out that 5-cups of coffee (and the science types use 6-ounces which is a semi-standard “[cup]) you can increase the brains psychological altitude from sea level to about 2,500 feet.

In other words, oxygen uptake and the other “systems” in the body result in a psychological altitude which you run into when you’re boning up on hypoxia:

Everyone becomes hypoxic to some degree when exposed to decreased partial pressures of oxygen at altitude. Some factors beyond atmospheric pressure can cause some people to react as they would at altitude even when they are at sea level. These are what create a person’s physiologic altitude.

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First thing up this morning is a look at how the Federal Reserve is deliberately manipulating money supplies to make the markets go down.  Listen to Janet when she talks.

Here is how this is going to work.

First, we look at the most recent monetary action in the Fed’s H.6 Money Stocks report, like so:

You will see (if the coffee has kicked in) that the money supply growth has just seen the brakes slammed on.  This is like the ABS system in your car…used for panic situations.

Here’s the ripple effect to look for:

Think of the value of a stock company as though it is a can of beans.  It’s value will vary a bit based on how hungry you are, but the REAL pricing factor is how much money you have in your pocket.

If you live in Zimbabwe, for example, two cans of beans will cost you a few quadrillion Zbucks.

On the other hand, if you have less money in your pocket, by the time you get down to your last dime, the price of the can of beans can only be a dime.

The same thing is about to happen with the stock market.

The US dollar will soar in value. 

Gold will get its ass kicked.

It will take less Dollars to buy the beans.

So it will look like a major market decline.

And it will be. Err…sort of.  It’s really more of a denomination game…Wal-Mart, Caterpillar, Boeing will all still be good cans of beans.

It’s just Janet on the Brakes.  Worth noting by all denominations especially us members of Howard Hill’s  Church of the Holy Basis Point.

Less water in the baptismal fount of basis points, the less water is spilled.

Producer Prices –  Going up 6% (Annualized)

Well, here we go…proof that Americans have been dumbed down by the corrupted edjumacation system that we don’t even know when to pee.  I kid you not:

“A Life Changing Wearable Tells People When to Pee…”

…reports Wired.  God bless Common Core, huh?

Obviously, I can’t speak for you, but this being T-Pee-Pee time, and with the Producer Prices numbers just out, I’m suffering from involuntary  bladder contractions, a myself.  Hell of a mess to try and write a column in…but not whining, right?

Here’s the Producer Prices fairytale:

“The Producer Price Index for final demand rose 0.5 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today.

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COWG:  Corporate One-World Government.

This is really slick, really anti-American, and people like my Congressman, Jeb Hensarling (Texas R 5th District) are unwittingly being sucked into being One-Worlders.

In simple terms, what used to be autonomous countries (The U.S., Mexico, and Canada) are still reeling from the Bill Clinton scam called NAFTA – the North American Free Trade Agreement implemented circa 1993.

Has NAFTA helped the American worker?

No.

Has NAFTA helped the multinational Corporations?

Abso-freaking-lutely.

The One-Worlders have made it clear…they are taking over the World under the “Free Trade Banner.” 

Why, anyone who supports non-free trade is bad, right?

Well, no.   Because “free trade” is not “free.”  Countries give up Liberty and Autonomy. 

Thus, this is the very backbone of Global Government and you need to get that through your head.

To be clear, here’s how Global Government Arrives…

But it doesn’t stop here. 

There will be additional layers added on the top (green) level. 

There will be Climate Law and there will be a Global Income Tax, to fund this new World Government.  Pollution Law…and gosh, doing all this “good work” means we need money at the globalist level, right?  How about a Global Tariff?  Yeah…sure, you bet’cha.

Remember how there was going to be a global pollution tax, and then that became a global climate tax?  It may rotate around some more, but it’s a what when comes down to it?  A Global Government Tax.  A “Put America in its place” and “steal her Independence” tax.  Plain enough?

If you don’t see this is stark relief yet, I’m sorry for your thick-headedness. I should introduce you to my congressman.  If you need help understanding what I’m saying, pass this on to a grown-up (someone over 60)  and have them explain it to you.

So let’s ask is “free trade” good?  The old poster-child of free traders is  NAFTA.  Did it deliver?  No. We’ll do the post mortem on that turd for Peoplenomics subscribers tomorrow.

Besides, here’s a hot off the press news release from my local congressman.  Now, I don’t think he’s a deliberate stooge of corporations…probably a nice guy and all at a personal level.  But he’s being played and hasn’t figured it out yet.

I’ve highlighted the important parts to make it easier to follow:  Read just the yellow highlights because that’s all that really matters…

”Eliminating Barriers for American Agriculture

Knowing of your interest in agriculture, I wanted to make sure you were aware of important legislation recently passed by the House of Representatives to prevent harmful trade sanctions which would hurt virtually every sector of the agriculture industry.

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Bend the plastic, brothers and sisters!  Retail sails higher!  Except, as revealed in the chart, the fact is without auto sales, this economy would be in the crapper.

Of course, you’re supposed to drink the Kool-Aid without stopping to look at that absolutely towering auto number on the far right.  Back that out and the eCONonly is in der flusher… But it writes well…

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for May, adjusted for seasonal variation
and holiday and trading-day differences, but not for price changes, were $444.9 billion, an increase of 1.2 percent (±0.5%) from the previous
month, and 2.7 percent (±0.9%) above May 2014.

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Ivar Haglund, who for years ran the famous Acres of Clams on the Seattle waterfront, nailed the best fish and chips recipe on the planet. 

But he was better known for saying “Keep Clam.”  No matter what the occasion.’’

A folk singer in his earlier years, he had the kind of spirit we seem to have lost track of.. which means its getting on time toward George and Elaine making our summer trek for fish and chips in the Pacific Northwest again, later this month.

We will be in the Seattle area from about the latter part of June to the midriff of July and then off to Alberta and so on, weather permitting, of course.

As your mind clears, it might occur to you to wonder “What the hell does Keep Clam, a trip to the Northwest, and travel plans after, have to do with investing?”

Just everything.

I will lay out the reasons on the subscriber side again Wednesday, but with the market set to open down only modestly this morning, Haglund’s “Keep Clam, you chowderhead!” rings as good as anything put out by a major brokerage firm, here lately.

If you’re trying to make a few clams, the only way to work it is with determination – and a clam shovel.  This latter point being often missed by the free-lunchers, who often forget that making clams involves digging in.

Speaking of chowderheads, though, we note that on Friday, Fed Bossette Janet Yellen was saying the Fed would not turn over information about Feral Reserve meeting notes, which showed up in the hands of an investment outfit one day before public release.

This all deep-fries into a crispy “we’re probing that ourselves” on the Fed side to local Congressman Jeb Hensarling’s  wondering why we would swallow that bait?

Conspiracy theorists are going to love this one:  It also gives the republicorps something they haven’t had for a while…a real story.

But in the meantime, we’ll keep clam for another day…as there’s not much on the calendar.  So we will  sit back, amused and amazed at Ms Yellen’s other side show, preemptively saying last month that stock prices were too high and saying how we can’t afford a stock market bubble.

While some of our work points to a Dow soaring to 30,000 (when people figure out how much money has been printed by the FedGov) we note that Chris Legarde of the IMF has also signed on to the “No rate high club” as a leading member.

Still, little is likely to happen today.  The market usually likes some kind of news story to blame for any major move…so absent a Russian invasion of Ukraine (which itself is violating the peace agreement right and left) we have some boring bond crap and another quake over in Japan to think about.

I’m off to audit some media now, since the 5.9 quake report sure looks like a 6.1 on the USGS site.  Reality seems to drift now and then…

Hardly enough to ripple of cup of clam nectar, though. so we will clamly think about travels and profits to come.

And remember, when someone asks if the chips are down, don’t forget to ask if the fish is, too.

Oh-oh….the French fry warnings are back…

Problem for the Lab Rats

So, in this morning’s inbox is this gem from Madison Avenue Mike, scion of the NYC Fashion Jewelry set:

Binghamton University reports “Brain’s reaction to certain words could replace passwords.

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