Friday 30 July 2021
Euro zone inflation rises above ECB target - Reuters. Government officials decided on an inflation rate of 2.2%, just slighty above the target of 2%, after M3 money growth of Jan to May: 11.87% 11.43% 9.24% 8.41% 7.48%.
Tesla Megapack caught on in fire at giant battery project in Australia - Electrek.
From 15 July 2021: Sweden faces "very serious" economic impacts as environmental ruling threatens cement plant - Dezeen. The country is already a basket case with the goverment having to print money to keep up with sosial benefits.
Thursday 29 July 2021
US real Gross Domestic Product increased 6.5% in Q2 - BEA. At that rate your standard of living would be 6.6x greater than you parents 30 years ago. If your parents had one average size house, you should have 3 houses, each twice the size. This economic growth figure does not take actual inflation into account.
Amazon (AMZN) Investor Relations: Q2 revenue +27%, dEPS $15.12 compared to $10.30 last year, net profit margin 6.9%, price/earnings = $3599.92/~4x$15.12 = 59, price/sales = $3599.92/~4x$220 = 4.1.
Nikola Founder Pleads Not Guilty, Freed on $100 Million Bail - Yahoo Finance.
Robinhood opens at $38 per share, falls 9% in first hour of trading - Yahoo Finance.
Outspoken Chinese billionaire Sun Dawu sentenced to 18 years in prison - CNN.
Scarlett Johansson Files Lawsuit Against Disney Over ‘Black Widow’ Release - The Hollywood Reporter. Cinemas have been in decline for decades.
Wednesday 28 July 2021
Facebook (FB) Investor Relations: Q2 revenue +56%, dEPS $3.61 versus $1.80 last year, price/earnings = $373.28/(2.71 + 3.88 + 3.30 + 3.61) = 28, net profit margin =36%.
Another Fed Balance Sheet Record; Where’s the Exit Door? - Schiff Gold.
CDC Now Recommends Wearing A Seat Belt Even When You’re Outside The Car - Babylonbee.
This FRED chart shows total US debt relative to M2 money supply (blue), and Gross Domestic Product relative to M2 money supply (red). If money supply represents inflation, then the real economy (red) has declined since about 2000. When people borrow money to live on they are not producing, hence economic output declines (nominal GDP higher due to inflation, real GDP down). Since 2008 nominal debt increased, but is lower relative to money supply. It is possible that savers/lenders are losing the real value of their money to inflation.
Tuesday 27 July 2021
QUALCOMM (QCOM), Semiconductors. Investor Relations: Q3 revenue +65%, dEPS $1.77 versus $0.74 lasy tear, price/earnings = $142.44/(2.58 + 2.12 + 1.53 + 1.77) = 17.8.
Apple (AAPL) smartphones, Investor Relations Q3 revenue +36%, dEPS $1.30 compared to $0.65 last year, price/earnings $146.77/($0.73 + $1.70 + $1.40 +$1.30) = 29, net profit margin 27%.
'Via Mark Grant “Chinese government will not give US market regulators power to inspect financials of Chinese companies listed on US exchanges, to audit them for accuracy. There are at least 248 Chinese companies, listed on 3 major US exchanges, w/market capitalization of $2.1T.” ' - Twitter. This has been going on for some time:
From 12 Dec 2020: Congress clears bill to ban trading in Chinese firms that thwart U.S. auditors - Politico.
From 26 May 2020: U.S. Moves to Audit Chinese Firms. Market Frets Over What Comes Next. - WSJ. "Shares in major Chinese companies listed in the U.S. dropped sharply in the days after the Senate passage."
From 6 Jun 2019: U.S. must have access to U.S.-listed Chinese firms' audit documents, lawmakers say - Reuters.
Logitech International SA (LOGN.Switzerland) (Nasdaq: LOGI) Investor Relations: Q1 revenue +66%, dEPS $1.09 compared to $0.42 last year, price/earnings $115.27/($1.56 + $2.22 + $1.31 + $1.09) = 18.7, price/sales $115.27/$33.56 = 3.4, net profit margin = 18.4%.
Tokyo Records Highest Number Of Daily COVID-19 Cases Amid Olympics - Huffpost. "Tokyo is under its fourth state of emergency that will last through the Olympics and into the Paralympics next month."
‘Blokkeerschip’ komt eindelijk aan in Rotterdam, gedupeerden moeten betalen voor vertraging - AD.nl
Examples of countries trying to grow economies, by lowering interest rates, to increase debt. US total debt (blue) compared to Gross Domestic Product (red):
Japan debt (blue) compared to Gross Domestic Product (red):
China debt (blue) compared to Gross Domestic Product (red):
Monday 26 July 2021
Tesla (TSLA) Investor Relations Q2 revenue +98%, dEPS $1.02 compared to $0.10 last year, non-GAAP dEPS $1.45 compared to $0.44 last year. The non-GAAP price/earnings is $634.70/~4x$1.45 ~109, and price/sales is $634.70/~4x$10.686 ~14.8. The non-GAAP net profit margin is $1.45/$10.686 = 13.6%.
VA first federal agency to mandate COVID vaccines for all 115,000 medical workers - American Military News. The great thing about being a government official is that you are never charged for mistakes.
New rules have China private education firms bracing for a hit - Aljazeera. "The new regulations ban firms that teach school curricula from making a profit, raising capital or going public. Regulators also said no new licences will be granted."
Sunday 25 July 2021
"Food (Commodity) Prices #scary" - Twitter.
"Good Morning from #Germany, where the housing boom accelerates as Germans are buying real estate fearing rising inflation & rents. Europace House Price Index has risen in tandem w/ECB balance sheet to ever new ATHs. Jumped 1.9% in June. German House Price Index is now up 8.7%YTD." - Twitter.
Saturday 24 July 2021
""It’s never a bubble when everyone talks about it being a bubble." - Twitter.
Tear gas fired as protesters clash with police over antivirus curbs in Paris - SCMP.
The US stock market (red) compared to Germany (green), UK (blue) and China (purple).
Friday 23 July 2021
"Home Price Appreciation By Price Point" - Twitter.
'Pingdemic' Triggers Widespread Panic Hoarding At UK Supermarkets - Zero Hedge.
The share price of Didi Global (Nasdaq: DIDI), China ride hailing app, has now fallen to $8.35. The IPO price was $14.00. It listed 1 July. The first quarter profit was $0.76 annualized per American Depositary Shares (ADS). Sales per share for the first quarter was $6.19 annualized per ADS. The ADS price/sales is 1.35. Chinese stocks are cheap and operate in a vibrant growing economy, compared to the extremely expensive US stocks operating in an economy that needs 0% interest rates to survive on more debt.
Thursday 22 July 2021
Intel Corp (INTC), semiconductors. Investor Relations: Q2 revenue -0.5%, shares -4.7%, dEPS $1.24 compared to $1.19 last year, or non-GAAP $1.28, price/earnings = $55.96/~4x$1.24 ~11.3, price/sales = $55.96/~4x$4.087 ~2.9, net profit margin is 30%, dividend yield = 4x$0.35/$55.96 = 2.5%. The EPS growth due to share buybacks, and the dividends give a total return of 6.7%, at 0% revenue growth.
Twitter (TWTR) Investor Relations: Q2 revenue +74% (+42% over two years), dEPS $0.08, or adjusted dEPS -$0.35, price/earnings ~$69.57/~4x$0.08 ~217, price/sales = $69.57/~4x$1.369 ~12.7.
Snap (SNAP) Snapchat message application. Investor Relations: Q2 revenue +116%, dEPS -$0.10 loss compared to -$0.23 loss last year, or non-GAAP $0.10, non-GAAP price/earnings =$62.97/~4x$0.01 ~1570, price/sales = $62.97/~4x$0.584 ~27.
'The median existing-home price rose 23.4% in June from a year earlier, setting a record high.' - Twitter.
The FTC vows to 'root out' illegal repair restrictions on phones, fridges, tractors and more - CNN.
"So then we said give us another £54 million priti useless as an incentive scheme - and she did" - Twitter.
"When we say 'horse power'. This is a Belgian draft horse competing against a group of 18 strong men. And winning": Twitter.
Wednesday 21 July 2021
Japan and China Race to Faster Maglev Trains - Next Big Future.
Usually higher interest rates (red) are required to stop inflation (M3 money blue). Before 1990, it is clear that interest rates (red) went up to bring money supply growth (blue) down. In US and many other countries, the government refuses to raise interest rates. So the relevant question at the moment is whether inflation will continue. Since about 1998 savers have lost value to inflation, with money supply growth (blue) being higher than interest rates (red). The gap between the two is getting bigger.
Tuesday 20 July 2021
The Most Splendid Housing Bubbles in Canada: Why the Bank of Canada is Cutting QE - Wolf Street.
Bubbles, bubbles everywhere: Jeremy Grantham on the bust ahead - Reuters. Bubbles usually burst when interest rates rise to stop inflation. The same politicians who lie to the electorate every election, decide on the official inflation rate.
"Britain is to give France another £54 million to try to prevent migrant crossings. The number of French police officers patrolling northern beaches will be doubled, and more technology will be used to target the smugglers." - Twitter. The real reason for Brexit.
This is what a 100km high trip into space looks like relative to the size of the earth:
Monday 19 July 2021
The S&P 500 earnings forecasts for Q2 is 46.44 compared to 27.98 last year, and 41.31 two years ago. For Q3, it is 47.80 compared to 38.69 and 42.14 the previous two years - Yardeni.
Yardeni Research forecasts 2021 revenue +17.7% higher in 2021 than last year, and +13.1% higher than 2019. Earnings forecast for 2021 is +40% higher than last year, and +20% higher than 2019. The increased profit margin could be higher volume and/or higher prices. If volume declines, then inflation would be above 17.7% over last year.
EXCLUSIVE: J&J exploring putting talc liabilities into bankruptcy - Reuters.
Sunday 18 July 2021
"In the late 70s, rising house prices helped pump up CPI, pressurising Federal budgets. Hence, in 1983 the BLS switched to using Owner Equivalent Rent, which handily produced a lower and less volatile measure of CPI. Can you imagine where CPI would be now if we switched back?" - Twitter.
From 27 Dec 2019: Cat watching Tom and Jerry - Youtube.
Friday 16 July 2021
"The top 10% of #income #earners are holding a LOT of cash" - Twitter.
Biophysicists target mechanism that makes Zika virus so dangerous - Phys.org.
Thursday 15 July 2021
"What few people understand is that it's the low #inflation we've enjoyed since the 2008 financial crisis that was transitory. That transitory period of low inflation is over. The transition to high inflation is just getting started. It's about to get much worse. Get use to it." - Twitter. Debt eventually gets paid by printing money, and inflation.
At least 44 dead in floods in western Europe, dozens missing - Reuters. People like building homes next to rivers.
Oregon blaze threatens 2,000 homes as new wildfires erupt in western states - Reuters.
Success in Reversing Dementia in Mice and Human Clinical Trials in 2022 - Next Big Future.
Fermented vs. high-fiber diet microbiome study delivers surprising results - New Atlas.
Wednesday 14 July 2021
FRED chart of US Lumber prices from Jan 1926 to May 2021. The price increases in steps.
Monday 12 July 2021
"You can print as much money (M) as you wants and have no inflation (P) as long as the velocity of money (V) is not rising, like in Japan.
Remember M x V = P x T from high economic lessons?" Twitter. The most likely reason for the decline in velocity is that wages do not keep up with inflation, for example: Velocity (-3%) x Money (+6%) = Real growth (-3%) x Inflation (+6%).
Parts of the southern hemisphere is getting a lot of rain, perhaps the hot weather in the northern hemisphere picking up more moisture, and sending it south.
The interweb creates the impression that some billionaires flew into "space". This chart from Wikipedia shows the earth's gravity is only down by -3% at 100km. The reason for the weightlessness of the International Space Station (ISS) at 408km is that the centrifugal force due to the orbiting around the earth cancels out the gravitional pull.
Sunday 11 July 2021
Demonstrators in Havana protest shortages, rising prices - Politico. Government will have to print more money to pay for support.
Friday 9 July 2021
"PREDICTING THE MARKETS. The Fed's punch bowl doth runneth over. The Fed’s bond purchases have flooded the banking system with deposits while business loan demand has been weak because money is plentiful and cheap in the corporate bond market thanks to the…" - Twitter.
The Chinese stocks are not the ones that need to fall. The Hang Seng Index has a price/earnings ratio of 12.5 according to Bloomberg, compared to the S&P 500 of 45.9 according to Multpl. Unlike US stock markets that have shot up 3.3x, the Hang Seng is up 20% over 10 years.
Apple Cofounder Steve Wozniak Embraces "Right To Repair" Movement - Zero Hedge. Developers need small quantities from suppliers which mainly sell large quantities to manufacturers.
Tesla patent reveals Elon Musk’s ‘table salt’ lithium extraction process that could slash costs - Electrek.
Thursday 8 July 2021
Off-Patent Osteoporosis Drug Also Found to Extend Lifespan - NextBigFuture.
Wednesday 7 July 2021
1 big thing: S&P 500 index funds balloon - Axios.
The share price of Didi Global (Nasdaq: DIDI), China ride hailing app, has fallen to $11.60. The IPO price was $14.00. It listed 1 July. It made a loss the last 3 years. The number of issued shares is unclear. The prospectus says the IPO was for 316.8M American Depositary Shares (ADS). Four ADSs represent one Class A ordinary share. The outstanding A shares after the offer is 1083M, Morningstar says 4331M, which is the number of ADSs. The first quarter profit was $0.76 x 4 = $3.04 annualized, or $0.76 per ADS. Sales per share for the first quarter was $6.19 x 4 = $24.76 annualized, or $6.19 per ADS. The ADS price/sales is 1.87.
Another ride hailing service, Uber Technologies (UBER) has made a loss the last 5 years, and came close to breakeven the first quarter. The share price is $49.51 compared to first quarter sales of $1.56 x 4 = $6.24 annualized. The price/sales is 7.9. It is 4.2 times more expensive that Didi.
Whilst the northern hemisphere has heatwaves, from 1 July: "(1/2) South America Cold Spell: Historic low temperatures on 30 June in some areas of Bolivia and Paraguay.Some records broken: -Pozo Hondo -7.4C lowest temp. in June in Paraguay, -Nueva Asuncion -5.4C previous -5.0C 18-7-1975, -Base Aerea Jara -2.8C previous -1.4C 29-6-1996" - Twitter. On average the earth is at a comfortable temperature.
Trump Sues Jack Dorsey, Mark Zuckerberg, Sundar Pichai Over Social Media Censorship Of Conservatives - Zero Hedge.
Tuesday 6 July 2021
Twitter loses its legal protections in India following government order - Engadget.
"A big IRS is a BIG problem. President Biden’s plans to give the IRS an additional $40 billion — the equivalent of adding 87,000 new agents. A super-sized IRS should be frightening news to every American!" - Twitter. It is crucial for the ruling party to collect the voter bribe money to remain in power.
Suez Canal Deal Reached, Ever Given To Be Freed Wednesday - Talk Markets.
"Green madness. Electric cars belonging to the city of Paris. No one will buy them because of the cost of the replacement battery. Who will dispose of this junk, especially the batteries?" Twitter.
Monday 5 July 2021
"No bubble here" - Twitter. Goldman Sachs Non-Profitable Technology Index.
Luxembourg PM Xavier Bettel hospitalised after Covid-19 diagnosis - SCMP. "Premier tested positive after attending a summit with other European leaders".
"Watch as protestors in #Colombia recklessly topple a statue of Columbus. They call it patriotism, I call it unlawful property damage. Colombia ranks a sad 102/162 in @CatoInstitute ’s Rule of Law ranking." - Twitter. The country is called Columbia after Columbus. What they need is a statue of a banana.
Sunday 4 July 2021
In Alarming Escalation, Beijing Blocks Didi App From Stores Two Days After Blockbuster IPO - Zero Hedge.
Gasoline is up and GOP sees an easy target: Biden - Politico.
According this FRED chart, the price of gasoline (blue) is cheap relative to M2 money supply (red). Apparently the price is above $4 at some locations, whilst this chart shows $3.091 on 28 June.
Saturday 3 July 2021
"From today’s @ft editorial on the “ #housing challenge .” It’s amazing to think that, despite the stunning rate of house price appreciation and how this limits accessibility for the less well-off segments of society, the #Fed continues to buy $40 billion of mortgages each month." - Twitter. If the house price increases become permanent, it means overall inflation will eventually go up to the same extent.
Friday 2 July 2021
Tesla Vehicle Sales - CleanTechnica.
Thursday 1 July 2021
Hyper Zip Code Inflation - Palm Valley Capital.
Top Trump Org executive surrenders to prosecutors ahead of expected criminal indictment - CNN. Make taxes great again.
Richard Branson Announces Trip to Space, Ahead of Jeff Bezos - The Hollywood Reporter. "Virgin Galactic launches its rocket ship from an aircraft, reaching an altitude of roughly 55 miles (88 kilometers)."
EU's indebted states could ill afford yield surge, watchdog says - Reuters.
PepsiCo vows to cut soda sugar levels by 25% in EU by 2025 - Reuters. Coke flavour is presumably obtained from burnt sugar (caramel), thus the core ingredient.
This FRED chart compares the Wilshire 5000 stock market index (blue) with the annual increase in US total debt (red). There is 5:1 scale difference. The US economy needs more debt to keep going. Debt eventually leads to a weaker currency.
Wednesday 30 June 2021
"Many households are sitting on sizeable excess savings, which may support further spending." - @SoberLook. This is not actually the case, the majority of that #cash is held by the top 10% of #income #earners who have the majority of #networth which has been #fueled by the #Fed." - Twitter.
Flying car completes test flight between airports - BBC.
One reason why China would want its own crypto currency is to stop capital outflow. Countries that print a lot of money, and offer below inflation interest rates, often block capital outflow to stop the currency collapsing. Then you have other populations who do not realize how much their savings are losing value, and willingly keep their money locally.
This FRED chart shows the performance of the US dollar since decoupling from gold in 1971, against the Japanese Yen (blue) and Swiss Franc (red). Countries hold US dollars as reserve currency, because politicians do not care about other people's money.
The US stock market as the Wilshire 5000 index relative to Switzerland's M3 money supply as inflation indicator. The stock market is now back to the same level as in Dec 1971. A property in Switzerland would probably have provided the same return the last 50 years.
Hollywood Reacts to Bill Cosby Release: “I Am Furious, Shame on the Court” - The Hollywood Reporter. The acquittal only happened because he is famous. If he were a nobody, no court would have bothered.
Tuesday 29 June 2021
Portland police no longer making some traffic stops, citing ‘racial disparities’ - American Military News. The next phase is for police to accept bribes.
On this FRED chart the difference between Euro Area money supply growth (blue) and inflation (red) would be real economic growth at constant money velocity. The suggested growth of up 10% per annum for a developed country is laughable. The European Union is under enormous pressure to show the union is a success, despite printing money like Italy before unification. There is no way they are going to declare economic decline, so they make up an inflation rate below nominal economic growth.
In most countries, there is a close correlation between money supply growth and actual inflation. One reason why GDP (Gross Domestic Product) doesn't keep up with money supply, could be that people have to save more for housing, as house prices increase when interest rates decline. It could also indicate the shift from the poor to the wealthy. GDP is what consumers could afford. Most of the increase in money is probably not theirs.
Monday 28 June 2021
"S&P 500 price/sales ratio has notched a new record high … well above long-term average (1.55) and 5y average (2.26)" - Twitter.
"Global Money Supply % growth vs UN Food Price Index % growth." Twitter.
Sunday 27 June 2021
The Curious Sine Curve Of Equity Returns - Talk Markets.
The main reason stock markets go up is inflation. To get real economic growth requires a fundamental change in education, and a shrinking government. On this chart from 1971 to 1991 the US stock market (blue) stayed with money supply (red) as inflation indicator. The stock market (blue) is pricing in a massive increase in inflation (red). The present high grow in company results is because of money created. The inflation this causes is delayed. When inflation comes through, consumer spending will fall. The US is dominated by monopolies which will compensate for the decline in volume by increasing the price of goods.
Friday 25 June 2021
"Shiller PE 37.94" - Twitter.
Nike shares hit record high as sales get post-lockdown boost - Reuters. Their revenue grew by 6.0% per year from May 2011 to May 2020, which agrees with the US M2 money supply growth of 6.2% per year from May 2011 to May 2020. If the money supply growth is accepted as nominal inflation rate, then their sales have just grown by the inflation rate.
Smartphone-connected device detects infections in less than an hour - New Atlas.
I Will Never Use a Microsoft Account to Log Into My Own PC - Extremetech.
'Good Girls' Canceled at NBC as Move to Netflix Falls Apart - The Hollywood Reporter. It wil be replaced by Bad Girls.
From 5 Nov 2020: Man Banned From Yellowstone National Park After Rangers Catch Him Cooking Chickens in the Hot Springs - Travel + Lesure. Cooking at 100°C doesn't bake the fat like a 180°C oven.
Thursday 24 June 2021
Severe heatwave in US states breaks June temperature records - The Guardian. The earth will heat up until smoke is generated to seed the clouds.
'We have a deal': Biden reaches $1.2 trillion infrastructure compromise with bipartisan group of senators - USA Today. After politicians have already borrowed $28 trillion, probably to cover running expenses, and not capital for projects, they want to spend money on infrastructure.
"New Home Prices in the US hit another record high in May ($374,400), up 18% over the last year" - Twitter.
"Yellen says inflation should be lower than current levels by year end" - Twitter. One government employee predicting the fake inflation figures produced by other government employees.
After stopping China throwing kitchen sinks at us, they’re raising a WTO dispute - SMH.
"It's A Bust": Elon Musk's Fixation With Tesla's Failed Solar Roof Rollout - Zero Hedge. Who cleans the dirt off the roofs several times a year (besides the heating of the earth by the 90% of the solar energy that is not turned into electricity, and the backup power required)?
"Reverse solar still" keeps its cool to wring drinking water from air - New Atlas.
Wednesday 23 June 2021
The Supreme Court just handed down disastrous news for unions - Vox. The attempt by labour unions to monopolize wages, or limit access to an occupation to union members should be illegal.
Billionaire Mark Cuban regrets not doing the maths on Titan cryptocurrency after crash - News.co.au.
"Billionaire investor Mark Cuban has said it was “my mistake” for not doing his homework on the Titan cryptocurrency which dropped from $60 to $0 in a day".
Nuclear Fusion Startup Helion Energy Surpasses 100 Million Degrees Celsius - Next Big Future.
Tuesday 22 June 2021
No, Blackstone Didn’t “Buy 17,000 Houses” out from under Desperate Homebuyers. And BlackRock Didn’t “Buy a Whole Neighborhood.” But Built-to-Rent is a Huge Change - Wolf Street.
Stress study shows graying hair is reversible - New Atlas.
Bitcoin falls again, breaking below key $30,000 level that traders say could lead to more losses - CNBC. Instruments can rise to any level. It is only when they fall that people search for inherent value.
EU antitrust watchdogs to investigate Google's adtech business - Financial Post.
Monday 21 June 2021
Bitcoin falls 10% as China intensifies crypto crackdown - Aljazeera.
"Dogecoin correction update: -78% since the Musk SNL peak." - Twitter.
Saturday 19 June 2021
Researchers find biological links between red meat and colorectal cancer - MedicalXpress.
Crypto-miners are probably to blame for the graphics-chip shortage - The Economist.
Friday 18 June 2021
Financial television channels show tiny changes in US interest rate as if this is going to change anything. US interest rates are very far away from the money supply growth. Holding US dollars at low to zero interest rates when it is being diluted by up to +27.6% (22 Feb 2021) makes no sense. M2 money supply growth has declined to +15.3% at 3 May. The M2 money supply has doubled since 10 Sep 2012.
Public holidays is government deciding when you may or may not work, and limiting you freedom. Why do people need a day off work to commemorate an historical event? Go visit a monument if you want to remember it.
Kiwi wars: the golden fruit fuelling a feud between New Zealand and China - The Guardian.
US reverse repo - the Federal Reserve is taking money out of circulation by borrowing from commercial banks. The $756B is 0.009% of total US debt:
Reverse repo (red) compared to US government debt held by the Federal Reserve (blue):
Sweden is an example of a country where government spending at around 50% of Gross Domestic Product (Trading Economics) has reached a level at which economic growth has stopped. It has periods of high money supply growth (blue) to print money for government spending, which produced little extra economic output (red). The difference means money circulated more slowly. The most likely reason is high inflation, and a declining standard of living.
Relative to US M2 money supply (red), the gold price is higher now (yellow), iron ore is very high (grey), and copper is cheaper (orange).
Thursday 17 June 2021
"BREAKING: Mark Cuban calls for more stablecoin regulation after trading DeFi token that crashed to zero" - Twitter.
Commodities from copper to corn tumble on China crackdown, rising dollar - CNBC. That is during NYMEX hours, thus speculators. The prices are ultimately determined by demand and mining costs.
When the official inflation rate goes too high it means the government's statistical service didn't have enough time to adjust the figures or inflation basket.
There’s a 4 million home shortage. Can the federal government help fix the problem? - Vox. More government interference in problems they have created by not letting the free market operate. More money must be printed for government support.
"The current face value of mortgage-backed obligations held by Federal Reserve Banks. These securities are guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae." The $2328B is 2.8% of total US debt:
Wednesday 16 June 2021
"Intangible assets comprise 90% of total S&P 500 assets. That is all." - Twitter. Is there an attempt to overvalue assets, so more can be borrowed without net asset value going negative?
Trump Announces He Is Building 1,954-Mile Long Trump Hotel Along Southern Border - The Babylon Bee.
Tuesday 15 June 2021
"Australia says trade deal with Britain agreed. A priority for its post-Brexit strategy, as Britain seeks to build stronger commercial links in the Indo-Pacific region." - Twitter. Given the extremely high value of the Australian dollar, it is hard to see what Australia can export cheaply. Minerals make up 69% of exports: Worlds top exports.
Parents rip into DOE, say NYC has failed black students - NYPost. "Despite spending roughly $27,000 per student, PS 134 in Hollis saw only 6 percent of 5th graders pass their 2019 state math proficiency test and 17 percent hit that minimal mark in English."
Monday 14 June 2021
"Will inflation really be transitory? Not in this overstimulated economy, says @itmtrading_zang. Touching base with @DanielaCambone, Zang breaks down why— and how— investors should protect their wealth ASAP." - Twitter.
Latest property price forecasts revealed. What’s ahead in our housing markets in the next year or two? - Property Update. "They see Sydney house prices increasing by up to 19% by the end of the year".
"No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear." – Ronald Reagan - Twitter. And government workers are fully paid during lockdown, whilst everybody else must cut back.
3 ways to profit from falling bond yields – an inflation anomaly - Banyanhill. The "inflation anomaly" has been above the official inflation rate for a long time, repeat from 1 April:
Consumer Expenditure 2019 - US Bureau of Labor Statistics. In 2019 the average consumer unit (there were 132.242M units) spent 25% of income on housing. Spending were divided as follows: 33% housing, 17% transport, 13.0% food, 8.2% healthcare. This makes up 71.0% of all household spending. Some recently reported inflation rates: US Housing Market Forecast 2021: Will Sales or Prices Crash?: +14.3%, What’s Behind the Stunning Spike in Used Vehicle Auction Prices?: +19.5%, US Core Food Inflation Accelerates, Gro’s Index Shows: +9%, NHE Fact Sheet (National Health Expenditure): +4.6% in 2019.
"What global steel production has looked like over the last 50 years" - Twitter.
China & Shanghai Containerized Freight Index - MacroMicro. Another bubble.
Tesla will once again accept Bitcoins as payment, but only on Tuesdays during happy hour, and only if the coin is gilded with enough gold to pay for the car. After the purchase, Musk will smoke a doobie with you.
Sunday 13 June 2021
"Onsite meeting to discuss rising sea level crisis" - Twitter.
Want to know how much a job pays? Here's the income for hundreds of Australian occupations - ABC.net.au.
Saturday 12 June 2021
Jeff Bezos wants to fly up to 100km on the Blue Origin rocket. Considering the earth's diameter is 12,742km it is not really into space. If he can't return to earth due to a technical error, and has to orbit around the earth indefinitely, will he still be able to run Amazon? His title will have to change to Chief Executive in Orbit (CEO).
If Biden were a real leader he would have shoved his way to the front at the G-7 summit.
Friday 11 June 2021
Paddington derelict house that sold for $28k in 1976 has $1.9m price guide - News.com.au.
Is $779k reasonable for a one-bedroom house? Wellington property's high sale price reflects 'impossible' housing market - Stuff.co.nz.
"This morning in Falmouth, Cornwall, campaigners launched a blimp of President Joe Biden and Prime Minister Boris Johnson off the coast of Gyllyngvase beach." - Twitter.
France's Macron Urges G-7 To Sell Gold Reserves To Fund Bailout For Africa - Zero Hedge. First world countries with stagnant economies want to fund African population explosion so more can migrate to Europe.
There are people who trust government to report the inflation it causes.
Thursday 10 June 2021
"US monetary base is going vertical again" - Twitter.
New Chinese semiconductor firms have tripled in 2021 as Beijing and Washington jockey over technological supremacy - SCMP.
Researchers identified the protein responsible for cancer's aggressiveness - MedicalXpress.
The US stock market is up after a high inflation figure was released. This means the stock market doesn't believe interest rates will rise to suppress inflation. US debt continues to rise, which will likely lead to ever increasing inflation in the future.
This chart shows US inflation (blue) rises a year or two after a rise in debt (red). The growth in inflation is smaller than the increase in debt. To repay the debt either requires higher taxes or more money printing, both of which leads to higher inflation. Some-one must pay for the debt. They do it by sacrificing their standard of living through inflation. Government is determined to impoverish people in the future.
Wednesday 9 June 2021
Step away from your computer screen! and start making money - Banyan Hill. The stock market mainly goes up due to inflation.
"Campbell Soup stock is down 7% in pre-market trading after slashing its forecast for full-year earnings on higher costs related to raw materials and transportation. #Inflation is pushing up producer prices. The next step is to pass on the cost to consumers with major price hikes." - Twitter.
A robot is killing weeds by zapping them with electricity - CNN.
A Single Telescope Has Detected Hundreds of Mysterious Radio Signals From Space - Science Alert. "They are bursts of light in radio wavelengths (mostly) from millions of light-years away that last just milliseconds in duration - so powerful that they discharge, in that eyeblink of time, up to as much energy as 500 million Suns." That would be the power required to send signals between star/solar systems due to the extreme distances.
For The First Time, a Blood Test Can Tell if Cancer Treatment Is Working Right Away - Science Alert.
Garland vows to push probe of leak of wealthy Americans' IRS data - Politico.
Tuesday 8 June 2021
Bitcoin (BTC) is trending down, and is near the $30,000 neckline of a head-and-shoulders pattern. If bitcoin ransom can be recovered, what prevents any bitcoins from being stolen?
Global crackdown on organised crime after high-tech U.S.-Australia sting - Reuters. Government making an announcement when they perform their primary function, as opposed to the other 90% which are not government functions.
"Children on a plant-based diet may have less body fat, but they're actually shorter and weaker" - Twitter. That could be because they are not getting the growth hormones that are fed to animals.
Built solar assets are ‘chronically underperforming’ and modules degrading faster than expected, research finds - PV-Tech.
Watch: French President Slapped In Face By Man Shouting "Down With Macron!" - Zero Hedge. The Republicans are calling for his head.
US job openings (blue) have shot up, but looks small relative to total work force (green):
Monday 7 June 2021
1,000-foot multi-rotor floating Windcatchers to power 80,000 homes each - New Atlas. Only when the wind blows. For the remaining 75% of the time, households must operate without electricity. They could have a sirene that goes off when the wind picks up, so households can quickly scurry to use their electrical appliances.
Google fined $270 million in France for unfair advertising practices - CNN.
It looks like a higher oil price (red) might be required to increase US oil production (blue), depending on demand:
Saturday 5 June 2021
Tech giants and tax havens targeted by historic G7 deal - Reuters. The discussion should be about the way other people's money is being wasted on services which has nothing to do with the primary function of government.
Using 1971 as starting point (which happens to be the year the US abandoned the gold standard, and inflation started to run amok), the gold price in dollars (yellow) and the US stock market (blue) are again at the same level now. The main driver for both is inflation. The last time they coincided was before the 2009 Great Recession. Then gold shot up and the stock market collapsed.
Friday 4 June 2021
Watch: Futuristic Backpack Helicopter 'CopterPack' Takes Flight For First Time - Zero Hedge.
Facebook says Trump now suspended until at least January 2023 - CNN.
Nigeria suspends Twitter indefinitely after the site deleted a tweet from its president - Business Insider SA.
Governments and the media try to give the impression that economies are growing. US average wage (red) remained at the same level as inflation (blue) from 1964 to 2008, which means no real economic growth per worker for same hours worked. The deviation since 2008 comes to 1.26% per year.
For how long can the US economy grow by increasing debt? Repeat from 27 Sep 2020: If workers spend a third of their wage to pay off the debt at zero percent interest, this is the number of years it would take. Low interest rates have stimulated the economy by creating 40 years worth of debt. The savers and retirees will likely have much lower spending power as the debt is inflated away.
Thursday 3 June 2021
Broadcom (AVGO), Semiconductors, USA. Results: second quarter revenue +15%, dEPS up from $1.17 to $3.30, non-GAAP dEPS up from $5.14 to $6.62. The price/earnings is $464.80/~4x$6.62 ~17.6. The net profit margin of 43% suggest limited competition. At high margins profit growth is limited by sales growth.
More Than 2 Billion Tons Of Coal Mining Capacity Is About To Come Online - Oil Price. Countries without natural gas only have coal or nuclear power as options.
Tesla (TSLA) crashes after insider report that new orders in China are free-falling - Electrek.
The US stock market follows a typical exponential curve. Nothing that goes vertical is sustainable.
From 1926, US Producer Price Index for Iron and Steel (blue) compared to the Consumer Price Index (red). Steel was cheaper before 1956. If steel imports are now cheap, then there is a problem with the overall CPI.
Wednesday 2 June 2021
US military apologises after it accidentally stormed an olive oil factory in Bulgaria - Business Insider SA. They wanted to make pizza.
Tuesday 1 June 2021
June is bad for tech stocks - Banyan Hill.
Energy costs are stoking inflation. Just look at US gas prices - CNN. Money supply growth causes inflation, which is caused by government budget deficits. The public pays for high government spending through inflation.
Crestmont Market Valuation Update: May 2021 - Advisor Perspective.
From 30 May 2021: Why Worry About Inflation When Housing And Healthcare Can Flatten You - Forbes.
From 27 Mar 2021: The Rising Cost of Health Care by Year and Its Causes - The Balance: "Those without insurance often couldn't afford visits to a primary care physician. By 2009, half of the people (46.3%) who used a hospital said they went because they had no other place to go for health care".
It is impossible to measure high inflation (above wage growth) if the expensive services are removed from the inflation basket when consumers can no longer afford it. The US CPI (Consumer Price Index) follows wage growth.
Foiled again: Candela's C7 "flying boat" blows electric range figures out of the water - New Atlas.
Supreme Court rejects Johnson & Johnson’s appeal of $2 billion penalty in baby powder cancer case - CNBC.
DOG RESCUE: This 17-year-old defended her dogs from a giant mother bear and her cubs as the family walked behind her yard in California. - Scoopnest.
Australians Threaten Snickers Boycott After TikTok Video Reveals Chocolate Bar Is Now Made In China - Zero Hedge.
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