Inflation (CPI) - A Battle Already LostInflation ( CPI ) - A Battle Already Lost
I've recently shared my outlook on CPI and where I think its headed in the months ahead but after further review, it seems that I've previously overlooked certain signals which should have altered my perspective in a way that it did not. Based on discovery of those signals, I have now updated my anticipatory CPI chart to highlight certain levels of interest.
As we can see on the wavemap, the Consumer Price Index (a measure of inflation) has broken above its 40+ year bearish trend line. The breakout was very strong and should be considered as very significant. The format of the wave during this breakout has developed as what seems to likely be a zig-zag formation. Noticeably, the upside zig-zag wave has retraced 90% of the 40 year long bearish drawdown. Therefore, leaving little probability of it being a truly corrective wave. Aside from the macro bear trend-line, I have also highlighted the newly respected bullish trend-line.
Finding resistance near 6.77, Fibonacci measurements suggest that the pending action will fall to retest the former price containing trend line and maybe even drop below it. Specifically, Elliott Wave Theory suggests that 0.99-1.01 should be the downside target range. Over the past 20 years, this level has also supplied nearly unbeatable support. If support is once again discovered near 1.00, the currently active wave could then be sent to retest the red bullish trend, at a level near 9-10.
Ultimately, completion of the blue diagonal will signify that the CPI (and inflation) area headed for upside levels that the American economy has never witnessed. Personally, I believe that inflation is a byproduct of capitalism and there is no true containment possible. The next decade will prove to show if this is on point or simply farce.
Capitalism
Entry of the gladiatorsWonderful bullish news! There is a vaccine. The economic activity can soon go back to normal. The question now is how do we make it obligatory?
Crazy antivax conspiracy theorists are saying that because it is a rushed & untested vaccine and entirely new technology that affects ARN and contains heavy metals that can breach the blood-brain barrier we should let people choose if they want to take it. Haha ridiculous, they probably think the earth is flat am I right? We have no other choice, if we do not all take the vaccines millions will die, they do not only put themselves at risk by refusing to take it but they also put others at risk.
You know why we can trust pharmaceutical giants even though there is a major scandal every 2 weeks where they caused harm to make money?
Because there are now laws that make them immune against any consequences if there are long term negative effects.
Isn't that great? So now they can work with a clear mind and only focus on producing a vaccine as fast as possible to maximize profit without having to worry about any annoying long term side effect!
And officials clearly have our best interest at mind even though they might have a few millions in conflict of interests.
Why do I know this? Well the fact that Philippines have kicked out and want to punish Sanofi for selling to them an extremely dangerous & inefficient vaccine against Dengue, while the European Union have fully allowed this vaccine which we'll have the pleasure to get access to if we get a Dengue outbreak in Europe because they do not believe in conspiracies and want people to be healthy.
Of course Ursula has our best interests at mind. So does Joe. The Philippines are just conspiracy nuts and anti-China racists obviously.
Ok yes, every single child out of hundreds that took the Dengvaxia dropped dead and so what? Never heard of coincidences? Just because there is a correlation does not mean there is a crazy conspiracy theory silly. Children die all the time in the Philippines as it is a third world country.
People are losing their minds simply because Germany has passed an infection protection law, ridiculous, they say it reminds them of the 1933 enabling act.
It's not the same silly, it is called "infection protection law" not "enabling act to solve the distress of the people", see? Entirely different.
Schlomo Goldstein is hiding in a cellar; this is insane! People have gone completely paranoiac! And they don't believe in science and facts but primitive conspiracies. Schlomo should get on that train for his own good. The stories that "people are never seen again" and "the german government is sending all jews to concentration camps", how crazy does this sound to you? How can people imagine such insanity?
Independent fact checkers have been to Auschwitz and Dachau and gave these vacation camps a 5 ✡️ out of 5. The official claim from our independent fact checking sources is "The vacation camps of Auschwitz and Dachau are wonderful places and all of our independent fact checkers financed by facebook had a great time there, we are giving them a full recommendation".
See? There is nothing to worry about. We are on our way to a great time of peace, prosperity, and health.
Capitalism is collapsing and it was about timeCapitalism has entered the late capitalism stage and here is a perfect recent example:
"KLM CEO asks for 10 billion euro's from the government, then asks for a 100% bonus rate."
Are you serious? This is absurd. KLM is an airline company if you didn't know. They are not making any many at the moment.
Capitalism has already started to die off and it won't survive the 2020s great depression and complete economic collapse.
It is frustrating to see that most of the population is either pro capitalist or pro socialism.
Ye let's go for old garbage systems that never worked, absolute genius.
At least capitalism is better than socialism because people don't literally starve to death, and people don't get their head chopped off.
The past 200 years are filled with stories of government enforced monopolies.
But even without those, big corporations enjoy huge advantages no one can compete with: insanely high taxes are one. Armies of lawyer and lobbies are another.
In the wonderful state of California big restaurant chains have lobbied the corrupt capitalist-socialist government to run food trucks out of business "to protect consumer health we need brick and mortal professional kitchens" - that but trailer parks are good to go, and I didn't even mention the cesspool of feces needles and medieval diseases that are their homeless infested streets.
In California the socialist-capitalist system protects big corporations and guarentees people are subservient wageslaves: the corrupt government has passed a bill dictating FREElancers be hired as employees - an euphemism for "obedient wageslaves".
“It makes sure that the 1 million independent contractors in California get the wages and benefits that they deserve,” says the law’s author, Assemblywoman Lorena Gonzalez. HAHAHAHAHA 🤣!
How about the fact that freelancers are against it?
They have been crushed.
www.cnbc.com
"According to Upwork’s 2019 Freelancing in America survey, there is a reported 57 million American freelancers contributing an excess of $1 trillion to the economy each year."
Now every one can't run a business.
But imagine the uber shift if rather than all being owned and everything being dictated by 0.01% of the population, it would be shared by 10%?!
And rather than almost the entire population being wageslaves, there are a great number of freelancers, and franchised.
And people have way more different businesses to choose from, and when they help out smaller businesses they are way more involved as opposed to be treated as cattle. They could even be invited to own a part of the business even if they cannot run one all by themselves.
The dismantlement of the capitalist paradigm has already begun: people are sick of big corporations telling them what they are allowed to think.
The revolution has started. Everyone is connected and can think for themselves (the majority).
Central authorities are getting harsher and harsher, like a rhino covered in lionesses surging up and roaring in a last breath before its death.
That's it for my idea on economic systems and the abandonment of capitalism.
*****
But what are we going to do with all these mouths to feed?
The "Future of the Gas Station? (Latin America)The "Future of the Gas Station”?
(“Christ the Redeemer of Oil?”)
One of the most beautiful (UNBELIEVABLY beautiful) and largest “mega cities” in the world which is also named one of the New Seven Wonders of the World is (in) the city of Rio de Janeiro. Perhaps the only other mega-city “city” on Earth that can come close to matching the natural amazing cliffs and crazy “year round” beautiful beaches of Rio de Janeiro is “Hong Kong” (there are many secret cities around the world that are better then Rio de Janeiro or Hong Kong for example along the Perl River or along Southern China or maybe someplace else hidden on Earth?) However, many larger cities are much much more expensive (Rent in Hong Kong for example is about 600% higher then in Rio de Janeiro and food prices in Hong Kong are are about 200% higher maybe even more if you dont trust the numbers??)
Interestingly perhaps the “largest ever” oil corruption and fraud charges in the ENTIRE HISTORY of “ALL” of Latin America was quite recently (and is still going on to this day at least from the Brazilian stock market BOVESPA index’s perspective??).
This was a major lawsuit that started at some “Gas Station” outside of Rio de Janeiro Brazil and centered around one of the largest oil companies in the world. At least 11 different countries where involved in the lawsuit for "corruption indictments" (even the United Stated SEC made off with $10’s of millions of dollars (cold cash) from this case?), at least 18 different companies where involved and 400+ people (criminals) involved with many going to jail for anywhere between 10 to 30 years of jail time and by some estimates something like R$6.2 billion (USD$2.5 billion) (which is about equivalent to price of construction of 10+ off shore oil rigs?). Even the president of Brazil was sentences to jail for 9 years and went to jail for about one full year+?
What makes Rio de Janeiro especially beautiful and “amazingly religious” is a 600+ “ton” statue of “Christ the Redeemer” shining with “hands stretched open” above the mega metropolis of 10+ million people. The statue of Christ above Rio de Janeiro is truly one of the most amazing religious concepts that any modern megacity on earth lives and works under. The statue of Christ is so big and so fundamental that two thousand years from now it might still be there… it is a 600 ton god statue?!
Perhaps its more often then we realize in Europe and North America, but religion is and has a very important key to Latin America (and many other cities on Earth). However, for Rio de Janeiro “god (apparently) is the key”? The giant statue of Christ the Redeemer atop Corcovado mountain looking down at everyone happens be one of the most stunning and most “godly” and fundamental religiously famous landmarks of our Earth? It one of the “wonders of the world?”
One of the interesting things about the oil industry is that there is a lot of “suspicion” that everyone involved “maybe” is making a “ton” of money. Many people suspect the oil executives of being a type of “cult club”. Its possible that the corruption charges against Petrobras are “very complex” and even “creatively created” by a mastermind who understood the legal system and that they might have to “go to jail” just to convict everyone of what they are doing wrong anyway.
In a lot of ways the (socialist “working class”) president of Brazil learned a very very important legal lesson after spending one year in jail and “getting out” and being “set free” after even contacting the United Nations Human Right Commission. The corruption maybe was with the legal system itself.. the judges? and Petrobras maybe wanted to see the Judges go to jail in addition to the president? However, the president was “popular” especially with labor activists and was eventually set free. The president was convicted of “money laundering” and “passive corruption”, defined in Brazilian criminal law as the receipt of a bribe by a civil servant or government official. Lula was sentenced to nine years and six months in prison and only served about one year. However, the president learned a very very important lesson about “doing things legally correctly” and maybe will even run for president again? (see many articles of news on this topic)
So how does the “oil mafia” really work? How do we know if there really is such a thing as a “oil” corruption (problem) and how does this all actually work and do people really go to jail and get “busted”? What about the police operations in Brazil did they want some of this “oil” money too?? What was this Brazilian “Operation Car Wash?” And most importantly what can we do about all this? (for everyone!?) Whats the suggestions for Petrobras’s Future and the future of “oil” in Latin America?
In the oil industry and in “big-time” obese operations world there is a term called “downstream”. Some companies get so chubby that they essentially dont need any of there sales stores that they actually sell their products in… in the oil industry a lot of companies “don't need gas stations” anymore so they “spin off” what is called their “downstream assets” and basically the gas stations are no longer part of the company. This allows for some “corruption”? However, there is good and bad sides to this, it makes it easy to “own a McDonald’s or Petrobras Gas Station franchise” but difficult to do anything “differently” or create “unique competition” with the financiers (the people with all the money) or the people that gave you the money at the top get “lazy” and want even more money from the Gas Stations.
The law is typically behind the “money” and not the people who own and run the businesses day to day. A lot of these people are not use to “dealing with the legal system”. However, what happened in Brazil’s Oil Business was that someone working at a “gas station” might have “purposely” tried to “go to jail” just to get Petrobras “media light and attention” and then the real problem was actually something more “fundamental” to franchising and just being “reasonable”.
The problem “with” Petrobras actually has to do with something called “franchising” and how gas stations all over the world really work. Imagine two possibilities a world where “everything is run by big oil business” or a world where there is a lot of independent smaller business. The problem is we need both and both sides say we only need that side.
However, what if the problem is with wealth is maybe something “gravitational” or “universal”?
Is there fundamental problems with ALL of capitalism?
In the Communist Manifesto written by a Eastern European named “Karl Marx” believed that capitalism contained the seeds of its own destruction. He described how the wealth of the bourgeoisie depended on the working people (just like the people who actually work at these Petrobras McDonald (only franchise) Gas Stations) ... Eventually the proletariat (gas station worker) would lead a revolution against the bourgeoisie (Petrobras). The final struggle would lead to the overthrow of capitalism itself. Because the businesses (got too obese and fat) (and the governments that regulate them too) would just get too big and too powerful.
For more then a few hundred years capitalism has hidden behind democracy… but what if? What if there was something really wrong? With both communism and capitalism then what? (we will not discuss that here.. however, there maybe some new political revolution needed that isn’t socialism, or capitalism or communism)?
The art of franchising and “gas station-ering” maybe needs a “global overhaul”… the secret maybe isn’t in “more franchising” but allowing “greater freedom” and allowing independent business owners essentially to start their own unique businesses. And when we leave earth that all will get even more complected (this is the “transport” industry?)
There are many detailed videos on corruption and “operations carwash” and it may help to hear what others have to say about this problem of “franchising”. Part of the key to understanding both sides of “real corruption” to understand “both sides” and even look into helping both sides solve those problems.
It maybe that both sides wanted good? Even the Brazilian military “discovered” the problem in the first place? The head of Brazil's army wanted the president “behind bars”? and the New York Times even claimed "Brazil’s democracy is now weaker than it has been since military rule ended".. however, maybe the truth was different?
Hope this helps you!
Asher
:)
Why Trump - Part 1 The American DreamCapitalism is Broken
This is quite an infamous chart among armchair economists, but it still a mind blower. It so clearly marks the point where our current Western model came undone, perhaps irreparably.
Blue is the total real productivity of the USA in $ per hour. Red is real hourly wages of the USA. The data are compiled by the BSL and BEA and are provided by Federal Reserve. For the comparison I have normalised the data so that 1 Jan 1970 = 100. Real means corrected for inflation.
Clearly the period after WW2 until 1973 can be viewed as the Golden Age of stable capitalism in the USA, also known as the American Dream. As we see the wages of non-supervisory employees, i.e. regular Joes, increased in line with the total productivity of the nation. This means that citizens were collectively rewarded on a performance basis, thus making them stakeholders in the future success of their country. They were therefore motivated to preserve existing economic, political and social structure. In short people voted for the right people and rounded on extremist ideas (communism) which they were taught to despise. The compact with the elites must have been something like work hard and love your country and you and your children will get a decent share.
This all changed under Nixon... hopefully I will find the data to discuss this series further in Part 2. Any with wages have stagnated in real terms since the early 1970s. If you are a wage earner in the US you have pretty much been living with 1970s stagflation for the last 50 years while the owners of the means of production (rofl) have never had it so good. (Obviously a reference to British Prime Minister, Harold Macmillan who told the workers of that country that they'd never had it so good back in 1957.)
Thanks to globalisation and automation we have seen massive cost savings in production in recent decades, e.g. computers, consumer electronics, cars etc... yet for basic necessities such as housing, education and medical care costs have sky rocketed. The cost of annual tuition in the United Kingdom has increased by 800% in twenty years! While almost 10% of citizens in the world's richest country have no health coverage (according to US Census).
This applies to varying degree in all the democracies with Western-style economies.
Stock market could go down 80%? That's not the worse, not close.Be warned, this is going to be gloomy. Well gloomy for unprepared people with a family and that cannot easilly move.
As I predicted, things have kept getting worse with populism and all this.
We are at a point where people are openly calling for the eradication of Trump supporters, the extermination of whites because "they're all NAZI with concentration camps" (self-awareness of zero here).
Well, white men in particular, as I said, they need a small enough percentage of the population to hate. All whites would be too big. So "straight white men that aren't changing gender".
It strikes me as unlikely that a complete full blown big civil war will explode is that the average american is so overweight, lethargic, disconnected, careless, blissfully ignorant, it seems unlikely to me that he will get away from his video games and start rioting and fighting.
But at the same time, during the US revolution, only about 10-15% of the population did anything, and that is all you need.
And when things get bad enough people that don't care will start caring.
As far as I know the US has not been this divided for over a century, and these people simply hate each other.
People on the left openly calling for extermination of the right, and hundreds of thousands of likes... Pretty clear here...
If in 2020 the left gets to power there will be a great depression, and probably people go more and more to the extreme (left).
If Trump is re-elected, there will likely be a recession (the negative rates QE situation can't be sustained realistically without bad consequences for another 5 years...), people associate him with the free market, and they will blame capitalism and the right for the recession (remember: people are stupid, and never learn).
Just like in the 1930s.
People REALLY are stupid and never learn, this is not a meme or some elitist talk, it's just the way things are and always have been.
So either way...
The socialists of america are now pretty much as big as they have been in almost anyone lifetime.
They are bringing back ideas from the 30s already. Literally word for word Goebbels & Stalin quotes.
Instead of blaming jews for everything, it's straight white male.
Instead of hearing "international jewery conspiracy" you hear "white patriarchy conspiracy".
Exact same ideas, only a few words change. Same formula as usual.
1 difference: the people they want to exterminate have guns. Alot of them. So good luck here.
Makes you wonder, how come they are so eager to disarm these people? "To stop mass shooting for greater good". Ye right.
We keep hearing stories of "damn racist whites" killing people or "aggressively smiling" (didn't make that one up) and then finding out it was actually a leftist, and then the story gets dropped/buried. Go figure.
The usual people profit from hate, not just politicians thirsty for power (dems were using hate of black people and mocking the rep. for supporting them 150 years ago, now they use hate of whites to get black voters oh how ironic): Media. Throwing fuel on the fire to get views. Disney. They used to make fun of blacks because it was popular, now they belittle white men because it's the popular thing to do now, their stories are awful, they don't need a story, just be racist and sexist, you'll even get free publicity, and if anyone criticizes your garbage movies + killing the lore? Just call them a racist and a patriarch.
Lmao just a few years ago Disney was all "ye we are sorry for being racist in the past but we really changed". Riiight. I hope they end up banned. Over. Disney to zero.
It won't get better imo. 1 big reason, other than the coming recession. All kids are going to university now because "they have to" (what a joke).
And these places are overrun with marxists bolcheviks and all the filth that the west fought so hard to keep away.
Young people are very gullible!
All these gullible peons get their heads filled with all kinds of poisonous ideas from people in authority "that kinda make sense when you don't think too much about it and are intellectually dishonest".
And also, once 99.9% of people learn something, they really have a hard time letting go of it, even if they find out it was wrong.
So what worse than the market collapse, a civil war, could happen, maybe?
I see 2 things possibly:
- The fall of the west. What the west stands for, all its values, are now held in contempt by "mainstream" (media + majority in big cities): personal liberty/privacy, freedom of speech, capitalism, equality for every one (discriminating people to get equality of outcome is unarguably NOT equality duh), etc. Also btw eventually technology stops evolving and even devolves.
- A nuclear winter...
I need to add that in Ireland 10Y yields have just gone negative. In Denmark, a bank is now paying people interest for picking up a morgage. It keeps getting worse.
You cannot trust fiat currencies, OR cannot trust them for much longer.
There really is a drop in IQ also. It's gloomy but at least we can laugh a lot.
"Hey? You know how we will get rid of racism? With more racism!"
"Hey? Fiat currencies are untrustworthy and manipulated and only backed by a promise by the government and have no intrisic value, you know what the solution is? Fiat currencies that are EVEN MORE untrustworthy EVEN MORE manipulated EVEN LESS backed and have even EVEN LESS intrisic value! Gooo cryptoss!" Lmao I am sure your cryptos will be worth alot in a global totalitarian socialist regime.
Actions?
Well, if the west falls, then... they will confiscate all that you have anyway. At least you'll get free stuff and won't really have to work. Venezuela had 10 VERY prosperous years before their stupid ideas caught up with them and they started starving. Sweden has not yet collapsed. In the case of the USA thought, well idk... Things are already pretty bad on that side.
But at the same time, when the socialists of germany in the 1930s came to power, the economy recovered in only 2 years and everything was bright as long as you were not a homosexual or jewish...
Hopefully europe is safe. And people loving outside of big cities aka not like sardines, that own properties (and would like to keep it that way out away from the hands of the government) own guns. A socialist government won't just be able to pick up white men and lock them up, or let migrants poor in and rape go up 50 fold like in sweden.
Bonds are awful government or not.
So I got to say, all I see is:
- For the world outside of countries with socialist risk: get gold and property (careful with excitement if there is a speculative bubble), I just do not see what else can be trusted.
- In the USA: Oil your guns. Get PHYSICAL gold. In a safe. Maybe silver too. Properties of course too. Cannot diversify more than this there aren't other options. Bullions, guns, guard dogs.
- In Sweden, Hong Kong, Denmark soon maybe: RIP. Sorry. I have nothing positive or hopeful to say so I won't say anything.
- For all: Now is probably early, but if lunatics get to power in your country state or union/federation (how do we call it?), if possible store some lasting food. A farm at leats small one is great, and also a bunker, better safe than sorry. Bunker, farm, tin food, water bottles.
So to sum up my long term view.
I am preventively "short" on:
- Freedom
- Equality
- Stock market
- All currencies with no intrisic value
- Capitalism
- Technology
- Obesity
I am "long" on:
- Guns, if legal where you live
- Physical gold (and silver)
- Property
- At minimum a small farm
- Canned/non perishable food
- Bottles of water
- A bunker
I want to end saying that there are currently a few people that live in California that are in the process of moving to Texas.