…[F]rom your perspective, what would happen if the Fed drops overnight rates? Wouldn’t that action accelerate inflation and make things worse? Could it also freeze or limit credit? I bet the SOS/Fed wants to keep it all sounding copacetic until after the next (s)election and then let it rip.
The WSJ also had a glib article on today’s numbers, headlined: “Hiring and Wages are Up, Reinforcing the Economy’s Resilience”
“The U.S. posted surprisingly large gains in both jobs and pay, even though the unemployment rate ticked up to 4%”
Sara
Since COVID, fiscal deficit spending is not being sterilized
It seems that a huge chunk of the post-covid fiscal deficit spending is now being geared toward domestic matters and when fiscal spending is retained within the nation’s borders it’s nearly impossible to rein in price inflation.
For instance, when so much of this new spending is devoted to the green economy, the Great Reset objectives, and social programs, these inefficient spending campaigns flesh out with rising price inflation domestically. Moreover, when we have so many people coming across the border and the government is rolling out the types of benefits that they are extending, the spigots have to remain open.
Honestly, it’s fiscal suicide to take on so many domestic objectives at once. I just don’t see how they can put the toothpaste back in the tube. Thus, any drop in overnight rates will have an immediate impact on many sectors, especially housing. If we think house prices and the costs of living are expensive now imagine if the Fed dropped interest rates 100 plus basis points. Look out.
Why the persistent discrepancies in the Jobs data?
I observe the continual disparities between the unemployment Establishment and Household surveys and contemplate why these differences have been persisting for much longer than usual. The mainstream business outlets have been emphasizing that investors rely on the Establishment survey, with its relatively rosy data, over the Household report, which shows a much weaker employment market.
Of course, we can claim that widening report data is because this is an election year, but I suspect there’s also another motive; and that is to provide the necessary excuses to keep interest rates higher.
Higher rates curtail credit formation and subdue asset inflation
The Federal Reserve has already effectively froze and curtailed credit for the average person. All we need to do is look at the mortgage market for a hint of the results. If the Federal Reserve truly wished to ignite mortgage lending it could begin buying up mortgage back securities again. But as of now, this clearly is not on the radar screen. The FED knows that if it did so house prices would spiral even higher. The Fed and Federal government have to know exactly the horrors they are causing for the average person, so they are doing whatever they can to make certain house price increases remain subdued for now.
This green economy and those trillion dollar subsidies with LGBTQ and black justice, open borders, etc., are just excuses to spend, which ultimately achieves the overarching goal of wealth and power consolidation. Social spending has always been used to achieve this objective.
What investors should do
As an investor, I profit from this largesse. If we see the trajectory of UST debt levels diminish, then I would worry about asset prices, and I just don’t see that happening anymore.
Of course, knowing what I know about fiscal and monetary matters, the only conclusion I can make is that this all has to be intentional. There’s a lot less care about the spending being sterilized, so I assume this is intentional and the cost of living crisis will get much worse. People will be jumping out of windows by the time the solution is proffered.
This is why I have been begging for those who would listen to buy the assets. SFR housing, owner occupied housing, and stocks for the average person. Of course, this is opposite of what the alt-media recommends. We are to own the income generating assets.
Indeed, owner occupied housing generates income; there’s an implied opportunity cost and that’s equivalent to the rent we would otherwise be paying a landlord or what the rent our owner occupied houses would generate. Mark my words, rents will be going up much higher than our mortgages over time.
Do you think they’ll make it hard to be a landlord eventually too? Another thing is our taxes keep going up and I’m wondering if that’s their plan to make it so we can’t afford to own.
Your experience is valuable. A family member flips houses but one is far away and I keep telling him to only do local flips, but he likes flips in wealthy areas in CO. However, the last one had foreigners squatting in the house. The homeowner died and somehow they found out and took his house and car over. The dead homeowner’s brother called and the family member had them evicted, but not before they trashed the beautiful house, and stole the washer and dryer. I believe they stole the dead homeowner’s car too. The brother of the dead homeowner said that the foreign woman squatting there, lied and claimed that the dead man was her boyfriend, so she had the rights to his property. They were able to determine it was a lie.
So the open border is going to cost us. People from 150 different countries are coming in. My family member told me the neighbors he spoke with are all wary because of the house stealing going on. And they’re changing the law giving squatters rights! Doubt that’s in the media.
Yes stay out of Massachusetts. It is a blue Talmudic toilet bowl.
Up Up and away for asset prices.
We can see through the smokescreen and title the article for what it is: Reprogramming the way people think. You and I, being close to the same age, remember when owning was always thought of as better than renting.
College is a racket playing on suckers.
Employers don’t care about college degrees.
I learned that the hard way. The first question employers ask is “What experience do you have?”
That is a pretty tough question for Gen Z who spend their summers on the beach and partied at college learning socialist transgender garbage.
Don’t send your kid to college today.
Those who are wage earners will end up in a permanent slave class. The only way this will change is divine intervention or as Stone says “a Force Majeur”.
Pray for Jesus Christ return soon. This world is quickly becoming a living hell for those who don’t own the assets. If you own the assets then you are much better off.
Income generating assets come in various forms. Has anyone noticed that many things people need are becoming a subscription? Software is subscription based. The ownership model is being replaced and a monthly subscription for the same thing is taking its place.
Another form of a subscription might be a service contract. In my world, large companies pay good money to have a fleet of mass spectrometers under a maintenance contract. One component of the mass spectrometer is the high vacuum pump and those who service the instruments consider the turbo pump a black box that the devil lives in. My customers are those who service these instruments and I repair their turbo pumps. In essence I exorcise the demons living in the turbo pump and make them functional again.
For those who are in a similar situation, perhaps we have a future doing what we do that supports the machine. It all comes down to who is essential in keeping the wheels of progress in motion.
I was wondering if you could listen to this. It’s a podcast by a lawyer, and his outlook on the economy, government tyranny, and psychology reminded me a lot of yours.
He specifically speaks to the coming digital prison and the incredible economic difficulties facing people, how “electing” politicians to change it is useless, the broken real estate market. how the government plans to take even our homes.
It’s full of very sobering but important thoughts, many of which you have touched upon. And I wondered what we can do. Even if we can invest in income generating assets, how do we escape the coming digital prison?
Thanks.
https://the-quash.captivate.fm/episodes
Please check out the latest podcast on this site (The Quash) dated 6/9/24 entitled The Collapse Continues….
I don’t want to be too critical because I truly respect people with specialized skill and a solid work ethic. However, I see income generating assets as the type of thing that generate income whether you are there or not. Make money in your sleep type of stuff, at a certain juncture you can turn it over to professional management and collect the cheques. Maybe you have heard of this book:
https://en.wikipedia.org/wiki/The_Richest_Man_in_Babylon
Strangley, it was distributed by Banks and insurance companies in the early 1920’s as credit was expanding.
I have no doubt that the Synagogue of Satan is bringing a services economy. You cut my hair and I cut your grass, we’ll both get rich. We can’t ignore the skim in that equation that eventually brings both our destruction.
Interesting. The instructions are how one makes money in Babylon. It’s very apropos to today’s circumstances.
I often observe the “revelation of the method” everywhere by our enemy as >90% are falling behind, unable to see the method of their enslavement and, as that gentleman in that YouTube link I provided says, the average person somewhat sees what is going on, but is not doing anything about it, nor is he even panicking. He says the average man needs to panic, and there is only crying and calling each other names. They do nothing about it.
The enemy shoots us up, divides us, impoverishes us, injects carnival barkers like Trump and Alt-media Jones into the mix, and the people are handicapped by their inability to articulate their lethal dilemma.
The adversary’s revaluation of the method is here. It’s too late, and though the average man has been slowly realizing that the asset owners have won out, with the wage and debt slaves only serving the asset owners forever, the average man does nothing to change his circumstances. The door is now closing and by the end of the decade, any hope of empowering oneself will be gone. Only Jesus’s second coming or Jacob’s trouble can stop it. If these don’t happen, humanity is doomed forever. Like the Hunger Games. like all the predictive programming movies over the past 70 years. All there to condition is to the next phase of humanity.
Alan Watt had this down perfectly. He is a loss to our community.
The root of evil is not the money itself. The evil comes from people placing money over God. People worship money as today’s idol instead of God.
It is true that the small local businesses are being squeezed out by the likes of Amazon and Walmart. I use to see a lot of family owned pharmacies and grocerie stores which are now all gone. There used to be a lot of family owned mini mart’s which are now taken over by 7-11 and other big chains.
I tried getting cold remedies and vitamins from the local CVS and/ or Walgreens and they are out of stock most of the time on this stuff both in the store and for shipping.
So I go on Amazon and they have it. Amazon is going to be the go to for everything and pretty soon they will be the only game in town along with Walmart.
Be prepared for the great reset where you need a digital ID with your latest mRNA bird flu vaccine for the privilege of purchasing items.
Do you still believe we are on the timeline of 2027 for the force majeure? It seems like things are picking up rather quickly on the war front. Thanks for all you do.
Thank you
The “brazen financial raping” you write about also continues in the attacks on our food production. Just found this today: A half million acres of Idaho farmland is being destroyed by a new government “water curtailment” plan that went into effect at the end of May. This will shut down operations for about 6400 farmers in the prime spring growing season. This on top of everything else the SOS has done to our food supplies – including recent destruction of millions of farm chickens because of “bird flu” and hundreds of fires destroying food production facilities all over the country since covid – all leading to more food price inflation and Hunger Games becoming a reality. These attacks on food suppliers are numerous and relentless. I see Holodomor 2.0….. God help us all.
https://www.youtube.com/watch?v=yD1yTqzj1Y4