Two statistical realities will pop today.
First will be the Case-Shiller/S&P/CoreLogic Housing data. We will cover that in a special second update. But without looking, we are certain that the picture for Housing has never been brighter. People who own property profit from inflation. It’s why government can “get away with it.”
Where “it” is watering down the purchasing power of money. So it takes more worth less paper to “buy” the same goods.
As we have explained previously, there is a very high correlation between the growth of America’s “monetary base” and the “price rise” in housing. With the monetary base up 31.4-odd percent in the past 12-months, any fool can see that Housing prices – at least in the “Hot Markets” should be up this much (and more!).
Over the Top
Simple math lesson to begin the morning.
Let’s imagine the Dow Jones average exactly one year ago closed at 27,685.38.
Since we know that the Fed Monetary Base is up 31.47% in the past year, this would potentially press the Dow up to what?
Ure’s crackpot inflation is reflected in stock prices idea says (27,685.38*1.3147=) 36,397.97 or nearly that.
However, since we closed yesterday AROUND 35,741 we could have a bit more upside to go just on inflation-adjustments. Or, my crackpot theory is deficient because the balance may have gone into salaries and bonuses for people smarter than me.
Or the annual rate of hype & print will be revealed a bit lower in this afternoon’s money stocks report (H.6).
Still, up 8,056 points in about 252 trading sessions is +31 points a day on average. So that futures were +122 ain’t hardly surprising.
Something Troubles Us, Tho
It’s summarized in one of our twice-weekly Peoplenomics charts. Shows how the market (which based on reality should be worse off in real terms because of bioweapon fallout), has gone up.
By how much? Well, we reckon with only honest money the markets would be about 30% lower, prices would still be falling, and the obvious long-term economic depression would be evolving.
More people would be unemployed, homelessness would be higher, and consumers would be “sitting on their wallets.” Because with prices coming down – and money getting “tight” (meaning it will buy more as its purchasing power is restored) people will have no incentive to spend.
Today, we have a Fed which is trying to “inflate their way” through this Second Depression window. Every morning, we religiously check Ben Bernanke’s blog waiting for him to offer us “little people” some clue as to how this all works out. So far, we’ve been disappointed.
The Decoupling Problem
While Housing will get the market’s attention today (prices up, maybe with a splash less mania) the REAL story of monetary inflation will be told when the Fed releases the (now) monthly H.6 money stocks report.
We have been profoundly disappointed in Jerome Powell‘s performance as
Fed Chair. Since (like the miserable data-hider Alan Greedspan) he ended honest H.6 weekly reporting and delays reporting to a monthly basis.
Still, if you know where to look (we do) you can see the Great Decoupling risk evolving:
We have contemplated a class action lawsuit against the Fed for its lack of transparency and how this screws the small investor (but not market-trading Fed chieftains) who may trade better due to knowing the real score on money relationships.
Trading on non-public information is – near as we can figure it – insider trading regardless of what the “information itself” is – even something as innocuous-sounding as money creation run-rates.
The Ure family, of course, knows that in any dispute, the side with the best counsel almost always wins. And we can’t out-bid the Fed when comes to litigation. Think I’d get anywhere asking Perkins-Coie for some pro-bono help?
We can, however, sketch out “How the con is being run” to anyone wandering by. Along with explaining there are two castes in America. The “Made” and the “Great Unwashed.” This latter includes all of us.
Your only way out of ALC (America’s Lower Caste) is to own a supply chain and energy railroad, a ginormous software company to fund supervaxxing by needling everyone in the world, or staying in the House long enough for the spousal unit to make some super-money.
Are we having fun, yet?
No, we don’t need stories like Stop the gay superman social engineering. Though the polarization is certainly the first step toward monetization (which perhaps a comical company, Marxists, and Antifa plus the climateers have figured out).
Instead, the public’s useless energy can be burned off by adding heaping spoonful’s of additional complexity.
For example, two “BLM” stories today, lead to a discussion of abbreviated thinking. In one, BLM means…well, see if you really need help on this one: The BLM reminds the public to recreate responsibly in the Imperial Sand Dunes | Bureau of Land Management. Recently, the other BLM meant something else. As seen in stories like Indiana Ave. paving project to cover Black Lives Matter mural.
Battle of the Brands, anyone?
Let’s keep wandering through our growing fields of monetization’s, right?
Gender-bending may be a good thing (for the planet). Takes a little explaining though because science has come out with a WTF? Gender Myth Busted: Men and Women Show Same Emotional Variation | Technology Networks.
Point is, though, one-size fits all is far more efficient than a whole rigged and cockeyed “fashion industry.” So along comes Fashion Designers Strive to Upgrade Gender-Neutral Clothing – WSJ. Wait! Wasn’t all this in like, oh, the first Star Trek episode aired Sept. 8, 1966. We’ve all been slow apes figuring it all out, huh?
Fools Born Every Minute meet Lies Oft Repeated. Story about how Majority in US concerned about climate, poll finds | RochesterFirst. The scary part was how many people would “pay a dollar a month” to “fight climate” change. What we have to ask is pretty basic (dime store MBA thinking here): What exactly do people (who swallow climate pandering) think they are buying? See my earlier remarks on America’s Caste System and refer to previous rants on gullibility. WT(actual)F is the deliverable?
When we step back, climate pap appears geared towards people who can’t research living in sustainable areas and then band together to bitch about it and try to stick the rest of us with the tab. “We’re special so you owe us” is a growth industry worldwide.
Social and Search should be public utilities. How many times have I told you that? Well, in the latest revelations Takeaways from the Facebook Papers – CNN. Makes the case.
The “FluffPo” has a good one in 7 Mindless Habits That Are Making You Unproductive At Work | HuffPost Life.
Breastfeeding for the brain? Breastfeeding may help prevent cognitive decline later in life – Study Finds
And a statistical change is being noticed: Once practically empty, ERs struggle with a surge of pent-up sickness : NPR. A lot before we “covid” because of all the dough involved….
Off to refill the bean cup and wait on Housing numbers. Clam chowder or a cheese and tomato omelet – tough call.
Write when you get rich,