(Near 20’03” NH by 86’23.5” W – about off Cancun, Mexico)
Peoplenomics Subscriber Note: The regular Saturday report this week will be posted on Sunday afternoon because I need a lot more bandwidth that what’s here shipboard to run www.nostracodeus.com software scans and get a better bead on what lies ahead.
We begin this morning with the tale of the three little pigs: This one printed money, this one printed none and hoarded gold, while the third little piggy was overthrown in a “peoples revolution” which is why neither the proletariat nor royalty can be trusted.
Of course, neither can the bureaucrats since they all work for royalty, and this tees up our next fairytale: The Consumer Price Index press release, just out. Nitro pill ready?
The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.7 percent in January on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today.
Over the last 12 months, the all items index decreased 0.1 percent before seasonal adjustment. The energy index fell 9.7 percent as the gasoline index fell 18.7 percent in January, the sharpest in a series of seven consecutive declines.
The gasoline decrease was overwhelmingly the cause of the decline in the all items index, which would have risen 0.1 percent had the gasoline index been unchanged. The fuel oil index also fell sharply, and the index for natural gas turned down, although the electricity index rose.
The food index was unchanged in January, with the food at home index falling for the first time since May 2013. The index for all items less food and energy rose 0.2 percent in January. The shelter index rose 0.3 percent, and the indexes for personal care, for apparel, and for recreation increased as well. The medical care index was unchanged, while an array of indexes declined in January, including those for household furnishings and operations, alcoholic beverages, new vehicles, used cars and trucks, airline fares, and tobacco.
The all items index declined 0.1 percent over the last 12 months, the first negative 12-month change since the period ending October 2009. The energy index fell 19.6 percent over the span, with the gasoline index down 35.4 percent. The food index rose 3.2 percent, and the index for all items less food and energy increased 1.6 percent.
On the Peoplenomics side of the house, I explained yesterday how you are getting shoved into the poor house while at the same time the banker class is worried about deflation.
Vastly simplified, of course, if you don’t count food and energy costs, core PCE will be down and way under the target 2%. This morning’s data hints at more serious deflation, so don’t worry about a Fed raise just yet.
And thus, 16-days later than is acceptable is how this morning’s “we’ll get around to it” numbers played out.
As for market reaction?
Stock futures were about flat, oil down a buck. The herd isn’t sure if this price decline stuff is good or bad. Does argue for a drop in the 10-year Treasury later on.
Gold being up may not be directly indicating inflation in the wings – could just be the reported government investigation into big bank gold price suppression is getting up steam.
I’ll leave it to you to decide which of the three pigs you want to model your personal portfolio on, but paid up property in a low tax/rent area and precious metals holdings since 2003 has been a reasonable thing. Even after punitive taxes on the metals, which somehow don’t qualify for long-term gains for the physical.
Got to admire how the money-printers snuck that in. Paper trumps physical, but only for so long. Then the paper collapses and we’re patient.
Obama’s Blame Game
Some of my best friends are or were liberals. I recommend counseling because everyone’s a crook in today’s world – and everyone plays the Blame Game version of House of Thrones.
This is not to say Fearless Leader is a liar however; we live in a land where things are self-evident.
Yes, boys and girls, six years on this fellow it still trying to blame everyone but himself for a) the swarming hoards of illegals and the b) tax breaks for illegals and c) having the option to let illegals who are DUI/DWI off the hook, and shipping illegals to innocent cities.
There’s a reason former henchman Rahm didn’t get swept back into office and will have to face some of the music up in Chicago. People may be wising up.
“But Wait, There’s More!”
Then there’s the matter of Internet pricing and access. The FCC is expected to begin issuing what’s bound to be a set of rules on internet access.
A couple of (republicorps) are disappointed (and whining) about how the head of the FCC didn’t come to confessional on the Hill before the report due out today.
Meantime, George Sorespot and the Ford Foundation have been piling in the dough in support of “net neutrality” but since both sides claim their stand is “net neutrality” it’s a little absurd.
I’m deeply in the “all bits are created equal” camp, myself. Big corps want to be able to pay for bigger bandwidth costs by higher rates. However….
This gets us to the lack of a real presidential sales job to promote the rollover of ‘Merica to fiber as part of a national infrastructure upgrade.
This is just one of my many disappointments in Obama. I don’t see he’s done much to rectify the busting up of black families, an unintended consequence of goofy welfare rules, either. But that’s a conversation for another day. Unless you want to go over how another Obama appointee candidate wants to release illegals; I mean that’d be fine.
I should simply note in passing that keeping people poor and in the clutches of the Nanny State has become the ruling business model, as corporate-run prisons, social service agencies, and toll roads all go to point out. It’s also what healthcare “reform” was all about: Mandatory profit-making for health insurance companies.
New Woes for WhatsHerName
Yes, Hillary and Bill seem to be at it again: While She For Whom I Will Not Vote was busy playing Secretary of State, the Washington Post has a smashing piece on how foreign governments were heaping money into the Clinton Foundation.
This is not to say the Clinton Foundation doesn’t do good work, mind you.
It’s just that the Clintons continue to ignore one of the tenets of good government taught me by my long-ago mentor, past Seattle City Council president and county Superior Court judge:
“You can’t just follow the letter of the law. You need to avoid even the appearance of any conflict of breach of the public trust.”
By this simple measure, as I see it, both the Clintons have failed to maintain that trust. Far as I can figure, anyone who’d give a dime to Hill’s 2016 scampaign ought to seek remedial accounting courses.
You can’t outbid the big guys and go read the numbers. This is more like eBay and America.
Just like the insiders get first whack at IPO’s based on portfolio size, so to the American Kelptocracy (like the Bushes and Clintons) “work the circuit” to buy the job. T’ain’t right. But it is what it is.
I’ll take an honest socialist, like Senator Bernie Sanders over checkbook republicans and democrats any day. At least he’s consistent and you know where he’s coming from. Socialists in conservative’s clothing? No thanks. Lots of ‘em around, though.
Checking the various administration website makeovers for the White House, ever notice how there’s no “Bad Sell Claim Form?” There is on a more honest auction site like eBay.
The Dope’s In Washington
Maybe now that marijuana is legal in the District of Coercion, things will mellow out a bit.
I’d start ‘em off slow on a sativa (B-52?) and if we can’t figure out a flat income tax with a tax credit for under $50,000 annual incomes, we move them up to a Purple Kush, or so.
Maybe they’re already on ‘shrooms…that would explain a lot come to think of it.
This May Not Matter
I’m giving Universe 50-50 odds of outlasting me, but it’s odds seem to be going up daily.