The Sovietization of America is not just chronicled in Mark Levin’s new book American Marxism, but it’s becoming evident in two spectacular ways.
First is the democrats reversing course on masking. Slow Joe is now backed into a corner, medically: Do the right thing (like Trump did) or do the political thing. This as hospitalizations are the highest in months. And behind closed doors White House officials debate masking push as Covid infections spike.
We can skip the open borders and fomenting racial division, giveaways, and tax hikes, though. Let’s just skip to the finish line:
Shortages are popping up ALL OVER:
- General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F) – Facing Chip Shortage, GM To Mostly Pause Manufacturing Of Full-Size Pickup Trucks Next Week | Benzinga.
- ‘He didn’t really answer the question.’ Cincinnati restaurateur who asked Biden about labor shortage not satisfied.
- Work-based degree programs at OKC hospitals aimed at addressing nursing shortage.
- There is a global shortage of chicken wings and thus affects customers, sellers and restaurateurs
- And even the greenies (like us) notice solar is laid up as ‘Polysilicon shortage will continue through 2021’ – pv magazine International (pv-magazine.com)
This is what you call a “serial policy fail.” When we read about Slow going out and pimping more home starts and eye stories like the WSJ’s The Shortage of Starter Homes Extends Beyond Major Cities, we are reminded the core reason for soaring real estate prices is all the Fed’s addicted re-borrowing. Which – in turn – they were forced into because the crooks of the House were buying off voters with promises of unlimited free lunches.
The Lunch Tab Commeth
Sometimes, it just takes a while. The democrats are staring at the problem of plugging an ever-increasing number of “leaks in the financial dikes.” At some point, they run out of assets and fingers.
Look: America has a National Debt over $28.5 trillion dollars. What we “make” as gross domestic product is? You don’t know. And next week, the BEA will play “historical revisionism” again. See, they report percentage changes not HARD DOLLARS. Gross Domestic Product (Third Estimate), GDP by Industry, and Corporate Profits (Revised), 1st Quarter 2021 | U.S. Bureau of Economic Analysis (BEA). Percentage hell.
It’s not until you get into the spreadsheet tables (most sheep are Excel-impaired) that you find:
So, with (chained 2012) dollars – the GDP is $19-trillion and the spending is $28.5? Countries have blown-up on less. But, as long as the Fed has increased the money supply over 70%, almost anything with utility value (like a first rental or starter home) will outpace the Billionaire’s Boy’s Club race to the moon.
Around the edges, people didn’t notice the story earlier this month PBGC to Provide Special Financial Assistance to Troubled Multiemployer Plans | Pension Benefit Guaranty Corporation. All of which stems from pension funds planning based on 7% long term returns in a world where the 10-year Treasury note is still hovering around 1.28% and where the “Truth Detector” (highly manipulated Gold prices) is back under $1,800 an ounce.
At the same time, all the Big Money is scampering into stocks worldwide because it’s the only place there’s even a prayer of making money. Even small countries like Ghana are being forced to buy more stocks: Pension funds increase participation in equities market (ghanaweb.com). Weak hands at the top, anyone?
What we see going on is the ultimate game of Texas Hold-Em (All in!) poker. Going to end badly…but it will come both slower for those who see it and too fast for those in denial. It’s just how these things work.
A BAD News Alert
If we were advising the Slowest in Chief, we’re wait until after the market close Friday before announcing the remasking of America. By doing so, he puts one more day between this regime and the last one. He also ensures the market (cocked and ready for a massive wave (iii) decline now, will have some time to burn off a bit of panic over the weekend.
Not saying this is exactly how it will play. But I will tell you this: When you take the available facts, and then put on your screenwriter hat – write ahead to the ending and then invest that way, you can sometimes beat the street.
Fed Pushing Hard
We expect the Fed (and it’s proxies who get to play with the “free money”) will look at the same chart we do – or something similar:
I marked this “T” for a possible July 12 top, 1 (down) for the first decline) and as you can see, 2 can go up a bit more and still only be setting us up for a larger 3 down to come.
I’m just a nut-job in the woods and offer comments, never advice, but if Delta causes a lockdown – and then Lambda comes along stronger…well, there goes the market.
Which gets to the question more suited to boxing: “How many times can ‘e get up again?”
We don’t want to find out, but that’s the look here ringside. Even in the “sickie-by-the-Bay” Delta and lambda variants in California: What you need to know, says the SF Chronicle. Leaving us to wonder “Is this the short everyone should have seen coming, or does Savior Joe have a plan to pull it out?”
That’s before we get to MonkeyPox, though: Monkeypox outbreak fears as CDC monitors 200 people in 27 states for possible exposure after contact with infected Texan (the-sun.com).
Bad as Trump denial was, Covid, Joe, Kam, collapsing currency, and international travel risk denial are every bit as dangerous to the data-minded realist.
Let’s Do Numbers!
How about Jobless Claims? I highlighted the real (not seasonally adjusted) but surely there’s gotta be some happy-talk from this, right?
Then we study the Chicago Fed National Activity Indicator (CFNAI) which is today’s other stand-in for tea leaves: I love the term “growth moderated” which is oh-so-much-more-couth than “Growth disappeared into statistical noise” which might have been more accurate:
“The Chicago Fed National Activity Index (CFNAI) decreased to +0.09 in June from +0.26 in May. Three of the four broad categories of indicators used to construct the index made positive contributions in June, but two categories deteriorated from May. The index’s three-month moving average, CFNAI-MA3, declined to +0.06 in June from +0.80 in May.”
Depending on media spin (got dial a crooked editor on speed dial?) a DOWN move in headlines would let Slo do the mask thing before market close tomorrow.
But seriously? CFNIA down the rabbit hole, Filing for UI comp up, Gold saying inflation is on va-ca…and BTC has clawed back to $32,000? Free crack, brothers and sisters. Ignore the shortages. (General Motors shuts down production after chip shortage…) Full BS ahead!
Burning Out West
Side bet on why lumber prices have started to firm? Could it be fires in the West gobbling a million acres, or near-enough? Here’s the line-up at click time.
Smoke Map from all this:
Following the jet stream up into Canada and then back down over the Great Lakes. (Hey! Isn’t the border with Canada supposed to be closed???)
Caught Our Eye
Old law school joke comes to mind: “We’re gonna have a fair trial before we hang you…” as Pelosi blocks Trump allies from riot panel, GOP may boycott.
And speaking of the Sausage Hiders Hating Transparency Party: “House Democrats Block Bill Declassifying The Origins Of COVID-19.”
Reality Check: We haven’t gotten any more conservative in our 70’s. The Digital Uprising has simply become more emboldened and more Marxist in their free-lunching every day. When the dems get back to the middle they will be treated with civility, not as traitors. First, though? Close the border, level-up on Cuba, and open-up on Wuhan would be a great start at returning to America from the razor-wire mindset… Going once….
We are living an ultra-time compression of the 1920’s now: Modern analogs of the Spanish Flu, mass migration to cities, runaway stock bubble, and Dust Bowl II underscored by massive fires…
Shades of the TV show Lucifer: where the devil, doing time in Los Angeles as a female LADP detective’s wannabe, pries criminal secrets out of suspects by asking “Tell me, what it is you desire most.” Now, we can skip the show and get right to Investigation: How TikTok’s Algorithm Figures Out Your Deepest Desires.
On that note, off to polish Christmas ornaments. What??? You don’t have a summer maintenance plan for your Christmas ornaments? What the hell kind of slip-shod might-as-well-be-offshored operation are you running there, Bubba? Off to polish my
Christmas is under attack, you know: Crime Cancels Christmas: Old Sacramento Holiday-Themed Store Closing After String Of Thefts.
The Sov-Merican Union, formerly known as these United States.
Write when you get rich,