Morning Update/ Market Thread 11/30

Good Morning,

Futures are zooming on announcements of multiple rivers of “liquidity” (money) being pumped all over the world. The DOW is now nearly 500 points above its overnight low, below is a 5 minute chart:



I guess they need that “liquidity” because this just isn’t enough:

M1:

NEW YORK (CNNMoney) -- The Federal Reserve, acting with five other central banks, took further steps Wednesday to make it cheaper for banks around the world to trade in U.S. dollars.

The Fed -- along with central banks of the eurozone, England, Japan, Switzerland and Canada -- announced a coordinated plan to lower prices on dollar liquidity swaps beginning on December 5, and extending these swap arrangements to February 1, 2013.

Meanwhile, the People's Bank of China also announced a plan to increase liquidity Wednesday by lowering its reserve requirement ratio for financial institutions by half a percentage point.

And thus the effects of the impossible math once again exert themselves, and it is the reaction to those deflationary forces that causes bankers and politicians to kill their own currency via their satanic desire to create inflation.

Sure, try “investing” this type of “market.” And just who knew this was coming over the weekend? Graft and fraud is all I see, Hank Paulson is probably still spreading inside information. If you haven’t seen the latest that exposes yet another illegal operation by our former Treasury Secretary, then please see this complete breakdown of the rule of law and then imagine “investing” against these criminals: How Paulson Gave Hedge Funds Advance Word.

The dollar, of course, is tanking – that is the plan, that everything you need cost more and thus you are taxed with every dollar earned and then spent. Bonds are down sharply too, oil is of course zooming, gold & silver are zooming (trade of the decade), while food commodities appear determined to choke life from the masses.

In other news, the Occupy movement is raided by police on both coasts at exactly the same time showing how the police are now coordinating against the protests. From my perspective the police are acting on behalf of those who finance them, not the public – thus our nation is truly dividing itself into a classic good versus evil battle – again, I implore you to evaluate your own actions and make sure they are supporting the right side of the battle.

Yesterday it was reported that Consumer Confidence suddenly jumped to its highest point since 2003, this coming from just above its all-time low? Hmmm… I smell something funny. Did “Consumers” really all of the sudden feel good about the economy with Europe imploding, the stock market languishing, protests across the country (and around the globe), their home prices plummeting, and a depression era job market? Sure, but remember, I no longer consent to the lies, so I don’t have to believe it and in fact don’t.

The Hypocritical Mortgage Banker’s Association, who I hear is now threatening legal action against people who recast their “data,” report the following manipulate you proprietary data which I happily recast as a snippet of reporting from Econocomplicit:

Highlights
Thanksgiving is clouding weekly mortgage application readings with purchase applications down 0.8 percent and refinancing applications down 15.3 percent in the November 25 week. A look at four-week averages, which helps limit single-week distortions, shows the purchase index up 2.4 percent to offer another signal of momentum in the housing market. The four-week average for the refinancing index is down 4.9 percent.

Bargain home prices are helping to lift home sales as are low interest rates with 30-year conforming loans ($417,500 or less) averaging 4.21 percent for a two basis point decline from the prior week. Jumbo 30-year loans ($417,500 and more) averaged 4.55 percent for a four basis point decline. Thirty-year fixed mortgages backed by the Federal Housing Agency fell five basis points to 4.00 percent for their lowest rate since January. Pending home sales data, which will offer a look at contract signings for existing home sales, will be posted at 10:00 a.m. ET today.

Honestly, this data is so corrupt I don’t know why anyone would report it – it should be illegal for private interests to report statistics on their own industry as self-interest reporting in this manner causes economic misallocation that can, and has, damaged everyone in the nation.

The Challenger Job-Cut report was basically level from last month:

Highlights
Layoff announcements are little changed this month at 42,474 vs 42,759 in October and 48,711 in November last year. Government has been a heavy sector for layoffs this year as it is once again this month, at more than 18,500 with 13,500 of the cuts hitting civilians in the Air Force. Food, retail, and computer round out the month's next three hardest hit sectors. Layoffs in the financial sector have been mild the past two months but the report warns that contagion tied to the European financial crisis is putting US jobs in this sector at risk.

ADP, which is notorious for moving the market ahead of the Jobs Report, basically doubled the estimated “job creation” from 110k to 206k – this is way above the 125k consensus:

Highlights
ADP estimates private payrolls rose 206,000 in November vs a revised 130,000 rise in October.

I’m willing to bet this is higher than what the Jobs Report will come up with because November is one of the months in which they do a subtraction with their phony “birth/death” model.

While we’re speaking of phony, “Productivity” and Costs were released with “productivity” revised downward along with GDP. Remember, the only thing we produce is money, aka “liquidity,” the rest is mostly baloney because we measure our “productivity” in dollars, and just look at the M1 chart at the top of the page, that is all you need to know:

Highlights
Somewhat in line with the downward revision to third quarter GDP growth, productivity for the same period was revised down to a 2.3 percent rise, compared to the initial estimate of 3.1 percent and a 0.1 percent dip in the second quarter. Analysts had forecast a 2.6 percent increase for the revised number. The output component was revised down to a gain of 3.2 percent from the original 3.8 percent. Hours worked were nudged up to a 0.8 percent annualized increased from the original 0.6 percent.

Unit labor costs were revised to an annualized 2.5 percent decrease, compared to the first estimate of a 2.4 percent drop. The market median forecast was for a 2.3 percent decrease.

Compensation was softer than earlier estimated-down 0.2 percent versus up an annualized 0.6 percent.

Year-on-year, productivity was up 0.9 percent in the third quarter-matching the rate in the second quarter. Year-ago unit labor costs came in at up 0.4 percent in the second quarter, compared to a rise of 1.0 percent in the prior period.

Despite the mixed revisions (some favorable, some not), the latest productivity report is still favorable toward a continuation of growth in corporate profits with output up and labor costs down.

On the news, equity futures were up strongly but on favorable news out of Europe and on a better-than-expected ADP private employment report

Uh huh, if you remember, I raised the B.S. flag on the Compensation numbers when this was last reported. Now they are reporting that instead of the +.6% gain that it turned into a -.2% loss… and that is with their trumped up measurements that are completely not real. I can guarantee you the 70,000 employees at bankrupt American Airlines are about to lose far more than .2% of their wages while at the same time the true evil doers are flooding the world with “liquidity.” Track that… “liquidity” into the hands of the bankers, wages falling means none of it is falling into the hands of the 99% because the 1% use it to commit fraud upon the masses – that is the game afoot, which side are you on?

Meanwhile, and almost as if coordinated (cough, cough), the “Fed” in the Chicago area says that its index rose from 58.4 to 62.6:

Highlights
The pace of activity in the Chicago area has picked up this month with the business barometer at 62.6, far above 50 to indicate monthly growth and well above October's 58.4 to indicate an acceleration in monthly growth. Leading indications in the report show significant monthly acceleration led by a nearly nine point surge in new orders to 70.2 together with a nearly four point gain for backlog orders to 55.1. The new orders index is showing is fastest rate of monthly growth since March with backlogs showing their fastest rate of build since April.

Other indications are mostly positive with production particularly strong at 67.3 for a nearly four point gain while deliveries slowed further in another indication of strength. The report's sample, which includes both manufacturing and non-manufacturing firms in the area, added to their workforces in the month but at a slower rate, at 56.9 vs 62.3 in October which was a six month high. Input prices continued to increase but at a slightly slower rate.

The stock market, moving to session highs, appears to be getting a slight boost from today's report which points to strength for both the ISM's manufacturing survey on Thursday and the ISM's non-manufacturing survey on Monday.

LOL, so quaint… they credit this phony data for moving the stock market, guess they didn’t get the liquidity bomb memo yet.

And on coordinated queue, Pending Home Sales supposedly jumped (LOL) from 84.5 all the way to 93.3!! In the month of October! LOL Wow, talk about coordinated baloney – I guess President Obama must have sent the memo to make him look good.

Again the disconnect between reality and the spin of their fantastic lies grow larger. The math is clearly exponential, thus the flood of liquidity is required to keep the rivers flowing. None of it will find its way into the working class’s pockets, the rule of law for them is dividing itself sharper against the rule of law they apply to everyone else. So sad, the revolution is still brewing.

I, Nathan Martin, no longer consent to the lies.

Morning Update/ Market Thread 11/29 - “Outlook Negative” Edition…

Good Morning,

Equity futures are slightly higher this morning, with the dollar down slightly, bonds down slightly, oil higher, gold & silver lower, and food commodities roughly flat.

American Airlines, formerly the world’s largest airline, filed for bankruptcy this morning, their stock plummeting to 6 cents a share. They claim nothing will change operationally, that they will operate their flights and that they will continue purchasing the 480 new airplanes they ordered this July. Primarily it’s all about “restructuring.” What does that mean? It means they made too many promises to their debtors and to their employees and they are going to use this filing to primarily take it out on their employees because the bankruptcy laws in this nation strongly favor capital over people. This means that retirement plans will be vulnerable, wages will fall (while costs rise), and yet the company will still get their shiny new planes.

Fitch, one of the rating agencies that never takes action until well after the fact, finally put the United States on “outlook negative” from “stable” regarding its phony triple-A rating. Hmmm… current account deficit is 100% of trumped up GDP and they still affirm triple-A and finally produce an “outlook negative” because the “Super Committee” couldn’t tackle the impossible math?

Guess what, it’s FAR, FAR, worse than that. In the first place our GDP is vastly overstated – I say 40% or more. But primarily I say “WTF, over” to this deceive you metric in the first place, and I ask what in the world does a nation’s supposed “productivity” have to do with a nation’s debt?

Comparing those two things is exactly like comparing your personal debts to the productivity of your neighborhood! Who gives a damn? And what does that have to do with anything? Remember, we are no longer consenting to the lies!

The only thing that matters in regard to debt is the ability to service it, and that requires income, not productivity! The United States trumped up debt figure is $15 Trillion, but it only takes in $2.7 trillion in income, thus debt is 555%, or 5.55 times income! Now, if you include the debts at Freddie and Fannie, and all the other off balance sheet debt, our true national debt is more like 37 times our national income!

Dividing our Current National Income by our Current National Debt produces a chart with the following trajectory:

Current National Income Divided by Current National Debt:


Yep, outlook negative all right. And doesn’t that chart have the same ring to it as the diminishing returns charts I’ve been showing? Yep, same trajectory, that’s because our money is debt.

Meanwhile, the largest “asset” held by the 99%, their house, continues to slide in value. The latest Case-Shiller data shows that home prices fell another .6% in the month of September:

Highlights
Evidence is building fast that home prices are falling into deepening contraction, the likely result of distressed sales tied to foreclosures. Case-Shiller data for September show a very heavy 0.6 percent monthly decline for the both adjusted and unadjusted 20-city indexes. These are three-month averages which indicate an especially severe decline for September alone. In a mild offset, contraction in year-on-year rates moderated slightly to minus 3.6 percent, again for both the adjusted and unadjusted 20-city indexes.

Home prices in Atlanta appear to be plunging, down a monthly adjusted 4.1 percent in September -- again, this is not a year-on-year reading. The decline follows monthly drops in Atlanta of 3.0 percent in August and 1.1 percent in July. Atlanta, together with Phoenix and Las Vegas, are posting new crisis lows though the report is confident that for the nation as a whole, the price collapse of 2007 through 2009 will not be repeated.

Falling home prices are a heavy load on home owners, preventing some from selling their homes and forcing some into financial distress. One upside, as seen in recent data on new and existing homes, is that lower prices, together with extremely low interest rates, are giving a very welcome boost to sales. At 10:00 a.m. ET this morning, the Federal Housing Financing Agency will post its home-price data.

Heck, my home’s assessed value fell 10% year over year, and I have no doubt that’s very close to the market reality.

Below is the entire Case-Shiller report:

Case-Shiller Q3 Data

Consumer Confidence as well as the FHFA Home Price data are released shortly and will be reported inside of today’s Open Thread.

I, Nathan Martin, no longer consent to the lies.

Morning Update/ Market Thread 11/28 - Tales Keep on Rollin’ Edition…

Good Morning,

I call baloney on the supposed Black Friday Retail Sales party, ditto with the continuing rumor mill regarding Europe – to call both “tales” is the understatement of the year. Equity futures gapped up huge and are now more than 400 points higher than Friday’s low. The dollar is sharply lower, bonds sharply lower, oil higher, gold & silver higher, and food commodities higher as well.

Watching the “news” this weekend looked like nothing but a giant cheerleading advertisement for “black Friday” shopping. The completely biased National Retail Federation released a survey on Sunday saying that “Major retailers reported record sales of $52.4 billion over Black Friday weekend -- up 16% from last year.”

To which, I can only call major league bullshit to go along with a giant gaffaahaha. These self-interested clowns are very similar to the jokers who run the MBA (Mortgage Banker’s Association), in that they compile false and exaggerated reports in order to manipulate people’s perception of the market from which they derive their living – and to which the media also depend upon promoting.

No person in their right mind would believe for a second that retail sales actually rose 16% in just one year, anytime you see numbers that large, you should immediately think of Bernie Madoff and your scam detecting radar should begin screaming at you. First of all, if we go back and look at prior years, this scam is the same scam the NRF runs every year, and after their wild releases meant to create a shopping frenzy, reality is never what they proclaim. Secondly, this was a survey. Surveys are notoriously inaccurate, and they don’t survey the businesses that have failed in the past year! Also, sales are measured in dollars, not units, thus the outrageous production of money creates inflation – inflation does not equal growth in sales, it equals growth in money production!

M1:


M1 Percent Change from a Year Ago:


Hmmm… notice that M1 is up about 17% from a year ago, not too far from that Black Friday Sales Figure, no? Truth is that a number like that should scare the heck out of you, ditto with what used to be our free markets.

Now let's look at the other measurements of money from the "Fed," all expressed in percent change from a year ago:

Base Money 35% Change from a year ago!


M2 10% Change from a year ago:


MZM 9% Change from a year ago:


Speaking of money(ness), the BIS (Bank of International Settlement) reported that in just half a year the notional value of derivatives in the United States jumped by $107 trillion to $707 Trillion! That's a six month increase of 17.8%! Again, simply unbelievable! In this case, I believe the value of derivatives to be understated and I don't think the BIS or any group has a real handle on just how much money(ness) there is out there. Thus it seems out of control because it is out of control. Of course the failure of MF Global may be the first derivatives domino to topple...

Now do we really need to talk about Europe again? Same old stuff. Impossible math, debt saturated nations, corrupt bankers creating rumors about grand bailout schemes all of which simply make more debt money from nothing to imprison countries already in debt way over their heads. Any such solution will only translate into inflation, the Germans are right to be scared of it. The only solutions that will actually work are solutions that include shrinking the amount of debt – the exact opposite of what bankers would like.

And to think that the same narcissists who got the world into this mess will lead us out of it, is simply insane.

"We can't solve problems by using the same kind of thinking we used when we created them."

- Albert Einstein

A lot of data this week, the highlight being the Employment Situation report for November released this Friday. This morning is New Home Sales and the Dallas Fed Survey, both will be reported inside of today’s Daily Thread.

I, Nathan Martin, no longer consent to the lies.

Open Thread - Happy Thanksgiving Edition!

Morning Update/ Market Thread 11/23 - Tales Grow Taller on Down the Line Edition...

Good Morning,

Equity futures continue to tumble this morning, with the dollar rising sharply, bonds rising but then reversing, oil lower, gold & silver lower, and food commodities moving lower with wheat breaking a key support level that is the neckline of a very large head & shoulder’s pattern.

The morally crusted Mortgage Banker’s Association reports that Purchase Applications rose by a completely not believable 8.2% in one week last week, while the Refinancing Index fell by 4.0%. Sorry not one utterance out of their lips or off their computer is believable – 100% guarantee you that true statistics don’t move 8%, 20%, or 30% in one week. Again, this outfit is 100% hypocritical and they should not be allowed to produce self-interest driven economic statistics that are disseminated to the world. Here’s Econoplicit:

Highlights
Veteran's Day did blur mortgage application data with the subsequent week showing a strong rebound that puts the purchase index back on trend. The volume of purchase applications rose 8.2 percent in the November 18 week, back on an upward path but still, at about minus five percent, below the year-ago level. Refinance volume wasn't able to rebound, down 4.0 percent in the latest week though applications for government loans did rise with the government share of activity, at 12.3 percent, the highest of the year. Rates were steady in the week, averaging 4.23 percent for conforming balances ($417,500 or less) and 4.59 percent for jumbo loans ($417,500 or more). Next data on the housing sector will be Monday with new home sales.

Disgusting.

Weekly Jobless Claims rose to 393,000 – remember, it takes numbers below 350k to show any real job growth:

Highlights
Initial jobless claims are below 400,000 for a third straight week in what is a hopeful sign that the jobs market is improving. Claims in the November 19 week came in at 393,000 vs a revised 391,000 in the prior week and 393,000 before that. The four-week average of 394,250, down four weeks in a row, is below 400,000 for a second week in a row.

Continuing claims in data for the November 12 week rose 68,000 to 3.691 million with the four-week average down slightly to 3.672 million. Changes in continuing claims are hard to read given that declines are a mix of benefit expiration and hiring. The unemployment rate for insured workers is unchanged at 2.9 percent for a fifth straight week.

The Labor Department describes today's report as straight forward and without special factors. But the ongoing financial trouble in Europe is a major special factor that continues to unfold, raising the risk that weakened European demand may begin to drag on US growth and in turn job growth.

Really, you mean that a debt saturated Europe is a “special factor?” LOL, how about a debt saturated globe ruled by narcissistic psychos who were wrongly given the power to coin money with no one regulating the value thereof?

U.S. Constitution - Article 1, Section 8: The Congress (your representative) shall have the power “Clause 5: To coin Money, regulate the Value thereof…”
This is not occurring. Nowhere does the Constitution give Congress the right to subjugate this power or to give it to a few private individuals. This is THE MOST IMPORTANT CLAUSE IN THE CONSTITUTION. It clearly spells out WHO it is that is supposed to be in charge of the production and regulation of money. It is the correct rule of law and it makes the private “Fed” a completely illegal group. This is critical because transferring that power to a few individuals gives them the ability to make money from nothing and then to corrupt ALL the other provisions of our rule of law. This is the one point that the people need to get focused on – it is here where all answers are found – I’m talking about our problems with morality, ethics, war, entitlements, work ethic, everything!

You name the ailment, and I’ll tell you how it relates to WHO it is that controls the production of money. A common currency MUST come into being without benefiting the few, it must come into being without favoring anyone. Truly sovereign money does this, it does not come into being as someone’s debt burden.

Regarding Jobless Claims, remember to keep the longer term perspective in mind – everything above the red line is losing jobs:

Initial Claims:


Durable Goods Orders continued to decline in October, falling .7%. Points to consider… We make almost nothing in America anymore, the production situation is so pathetic that a few aircraft orders one way or the other causes this measurement to swing wildly – that is a national embarrassment, Ross Perot was right about that giant sucking sound you hear. Another point is that they measure Durable Goods in DOLLARS, not widgets, and thus they are way overstated. Here’s Econoday consenting to the lies:

Highlights
Durables orders in October were pulled down by a drop in civilian aircraft orders. Otherwise, durables orders were moderately positive net. New factory orders for durables fell 0.7 percent, following a decline of 1.5 percent the prior month (previous estimate, down 0.6 percent). The October decline was less negative than the consensus forecast for a 1.0 percent fall. Excluding transportation, durables advanced 0.7 percent after a 0.6 percent rebound in September. The October increase topped the consensus forecast for no change in durables excluding transportation.

Weakness in October was led transportation which fell 4.8 percent after dropping 7.6 percent in September. Within transportation, weakness was in nondefense aircraft which declined 16.4 percent after a 26.8 percent fall in September. These are essentially swings in orders for Boeing aircraft. Defense aircraft rebounded 10.2 percent, following a 34.8 percent drop in September. Motor vehicles rebounded 6.2 percent after a 2.4 percent dip the month before.

Outside of transportation, orders were mixed but net positive. Increases were seen in primary metals, up 3.0 percent; machinery, up 1.6 percent; and "other" durables, up 1.2 percent. On the downside were fabricated metals, down 0.3 percent; computers & electronics, down 0.1 percent; and electrical equipment, down 5.2 percent.

Turning to private investment numbers, nondefense capital goods orders excluding aircraft declined 1.8 percent, but followed increases of 0.9 percent in both August and September. Shipments for this series decreased 1.1 percent in October, following a 3.1 percent boost in August and a 1.0 percent dip in September. While volatile, nondefense capital spending appears to remain on a mild uptrend.

Despite monthly volatility, forward momentum continues for the manufacturing sector. Given the fact that Boeing recently announced sizeable new orders and that auto sales remain healthy, the underlying trend for manufacturing looks moderately healthy and should help the recovery gain strength, albeit gradually.

Healthy? Really?

Okay, let’s zoom out and look at the Durable Goods chart back as far as it will go, about 1992. We know that total employees in Manufacturing is at the same level as 1942, so let’s put them together on the same chart from about 1980:

Durable Goods with Employees in Manufacturing:


Note on the chart above how Durable Goods are measured in DOLLARS. This means that this chart is NOT REAL, does not reflect reality at all UNLESS we truly correct it for inflation. I can’t do that because the “Fed” has completely distorted the reality of inflation, but what I can do is simply divide the Durable Goods dollar quantity by the largest measurement of money, MZM:

Durable Goods Divided by MZM:


Gee, what do we find? Diminishing production relative to money creation. I could do the same thing by dividing Durable Goods with our debt, and the results look the same. What does it prove? It proves that our Durable Goods report is a fraud, when you measure production in dollars that are being devalued, then your measurement is meaningless. Thus this, and all economic statistics measured in dollars are a lie. A lie that gets bigger with the exponential growth of money and moneyness. The bottom line is don’t consent to the lies!

Demand that they stop lying to you and demand that the rule of law be righted by returning the money creation power to the people where it belongs!

Ready for more lies? Okay, here comes Personal Income and Outlays. Here the claim is that Personal Income grew by .4% in October, 3.9% year over year. And that “Consumer Spending” (Personal Outlays) grew by .1% in October, 4.7% year over year. Again, these are measurements of dollars. It says NOTHING about what you got for your dollars. And it says nothing about how long you had to work to get the items those dollars got you. Okay, let’s listen to the lies about “tame inflation:”

Highlights
Personal income and spending posted additional gains in October. Inflation was tame. Personal income in October advanced 0.4 percent, following a 0.1 percent increase in September. The October rise came in higher than the market median projection for 0.3 percent. The wages & salaries component posted an even stronger 0.5 percent boost after rebounding 0.4percent the month before.

The pace of consumer spending eased in October but followed a strong gain the prior month. Personal consumption expenditures rose 0.1 percent in October, following a 0.7 percent surge in September. Market expectations were for a 0.3 percent gain. By components, personal spending was led by durables, up 0.8 percent after a 2.9 percent jump in September . On a drop in gasoline prices, nondurables decreased 0.2 percent, following a 1.0 percent jump the month before. Services rose 0.1 percent after a 0.2 percent gain in September.

Headline inflation turned negative while the core rate was soft. The headline PCE price index declined 0.1percent, following a 0.2 percent increase in September. The market expectation was for no change. The core rate firmed modestly to a 0.1 percent rise in October from no change the month before. Analysts had called for a 0.1 percent rise.

Year-on-year, headline prices are up 2.7 percent, compared to 2.9 percent in September. The core is up 1.7 percent on a year-ago basis versus 1.6 percent the month before.

The October personal income report is moderately strong, taking into account that the easing in spending came off a strong September. Within income, the robust gain in the wage & salaries component is particularly encouraging. While unemployment remains high, for consumers that are employed, the fundamentals for spending continue to improve.

While we hear the lies, we do not consent to them! “Robust gain in wage & salaries” my ass. What a whopper of a lie – your wage is relative to cost because you are paid in dollars. If you want to see a true picture of your wage, let’s divide Personal Income by MZM, our money supply, to see what the truth looks like:

Personal Income Divided by MZM:


Uh huh. Are you feeling the squeeze? Excess money production, production that benefits the few, not the many, is the root cause.

“Consumer” Sentiment just came in at a pathetic level of 64.1, down slightly from the previous month’s 64.2. Let’s chart Consumer Sentiment on the same graph as Total Consumer Loans, shall we?

Consumer Sentiment & Total Consumer Loans:


Note how Sentiment rose into the year 1999 right along with the creation of the credit bubble. Then crisis with monetary response that throws the economy past the debt saturation point and ever since Consumer Sentiment has been on a down trending path.

It doesn’t have to be like this. You don’t have to consent to living inside of a nation that indebts itself to a few narcissistic individuals – that is a most improper rule of law. And you don’t have to believe or consent to the lies being bombarded upon you nonstop from the media and those whose livings are derived from propping up an illegal and immoral system.

Listen to Bill Black calmly describe the FRAUD and what needs to happen to make it stop:

Bill Black interview begins at the 7:15 point:


Don’t consent to the lies, don’t consent to the FRAUD.

“Talk is cheap when the story is good, and the tales grow taller on down the line…

I, Nathan Martin, no longer consent to the lies.

Morning Update/ Market Thread 11/22 - Mission Impossible Edition…

Good Morning,

Theme Music, Maestro, if you please:


Stocks continue lower this morning with the dollar slightly higher, bonds higher, oil higher, gold & silver higher, and food commodities continue lower after breaking down from their prior ranges.

For those worried about gold, here is the daily chart once again showing that the primary and secondary uptrends are still very much in tact:



Nothing highlights what I’ve been saying about the impossible math more than the “Super Committee’s” failure to even take a bite from it. Remember, they were tasked with “saving” $1.2 trillion over 10 years, but that would not have stopped the deficits from growing, it would have only slightly slowed their growth. And that was pure fantasy because any projections they were working with were simply false as they still don’t understand the exponential function of math. The following video series should be mandatory for all politicians, economists, accountants, heck everyone:



When I say impossible math underlies our economy, impossible is exactly what I mean. Not just in the United States, but in Europe and throughout the developed world. The root of the impossible math is the way in which our money comes into being as a debt that is owed to private individuals. You see, the Super Committee cannot stop making interest payments on the now $15,000,000,000,000 debt because they are living and fed from campaign money that comes from the people who profit from those insane interest charges.

There is only one way that the Super Committee can actually accomplish their impossible mission, and that is to end the “Fed” and begin producing sovereign, non debt money. Of course doing so unrestrained would be another problem, thus they would have to create checks and balances such as are contained within Freedom’s Vision.

Any politician who says they can “create jobs” while remaining within the central banker box is simply high, they do not understand the impossible math and how the economy is saturated with debt. There is only one way to create jobs going forward, and it involves clearing out the debt saturated condition, which must be accomplished one way or the other – any plan that fails to clear the debt will fail.

Of course we still haven’t addressed step one that prevents any “Super duper stupendous committee” from success – step #1 is to restore the proper rule of law. You start down that path by prosecuting the FRAUD, which is still rampant.

Speaking of fraudsters, I have a personal message for the stinking pile of manure that is Newt Gingrich… Go F___ yourself, Newt. And while you’re at it, it is YOU who should get a job and take a bath, I can smell the immoral narcissistic stench clear across the country! For you to say that it was not the Occupiers that paid for the parks they are occupying is not only patently false, as they are tax payers who most certainly did help to pay for that park, but you illustrate exactly how it is you and your overweight pandering to central bankers that proves you would accomplish exactly nothing except deepening the problems America faces. It is YOU who needs to go get a freakin’ job, you A-hole. Perhaps a little manual labor would be good for the soul, try it. By the way, you are now clearly in the running for the Economic Edge Asshat of the Year Award – congratulations.

What a field of candidates. Newt’s immoral words and life deeds may not land him in prison, but I know that Cain probably deserves a very long prison stay indeed, and would love to see that other Asshat Award contender on trial for his sexual assaults and for using his position of power over women. Running for President? He belongs behind bars least his next victim be one of our daughters!

The first revision for Q3 GDP came in much lower than expected at 2.0%, down from 2.5%. Note in Econocomplicit’s commentary how they try to spin this positive, yet also note how the growth figures were lowered, but the inflation figures were not:

Highlights
The economy got a moderate downgrade for the third quarter but the downgrade largely came from where there is the least damage to forward momentum. The Commerce Department's second estimate for third quarter GDP growth was bumped down to an increase of 2.0 percent annualized, compared to the initial estimate of 2.5 percent and to second quarter growth of 1.3 percent. Analysts had forecast a revision to 2.4 percent annualized.

The downward revision primarily was due to a downward revision to inventory investment-from plus $5.4 billion initially to minus $8.5 billion. This revision is the equivalent of a 0.43 percentage point lower contribution to GDP growth.

Minor downward revisions also were made to personal consumption, nonresidential fixed investment, residential investment, and government purchases. Net exports were revised up to minus $400.7 billion from minus $409.4 billion.

The net effects of revisions to inventories and other components (notably net exports) leave demand numbers still relatively healthy. Final sales of domestic product were unrevised from the initial estimate of 3.6 percent. Final sales to domestic purchasers were down to 3.0 percent from the original estimate of 3.2 percent annualized.

Economy-wide inflation was unrevised at 2.5 percent and compares to the second quarter rise of 2.5 percent. The market median forecast was for 2.5 percent.

Turning to current quarter strengths and weakness (as opposed to component revisions), the economy was still gaining modest momentum. The acceleration in real GDP in the third quarter primarily reflected accelerations in PCE and in nonresidential fixed investment, a smaller decrease in state and local government spending, a deceleration in imports, and an acceleration in exports that were partly offset by a larger decrease in private inventory investment.

On the news, equity futures dipped modestly. Nonetheless, the key points today are that there is no significant change in underlying demand in the third quarter and recent monthly data indicate further strengthening.

Of course that is all bumpkis. Real GDP is not only negative, but it is extremely negative. And our GDP is overstated by 40% or more because they count our deficit spending, debt owed to private bankers, as “production.” That means that GDP is really a measurement of our money(ness), not of production. Below is a chart showing supposed GDP along with our national debt in grey, and below that all the current “Fed” measurements of money supply – note how all the money adds up to debt, since all our money is debt! Then notice how our national debt, which is now $15 trillion not the $14 trillion depicted there as they can’t update their charts fast enough to keep pace (so I extended the line to reflect that), is now outpacing our GDP:

GDP/National Debt/Money Supplies (money is debt):


Now then, when you take our GDP and divide it by our money supply, you quickly understand that something not good is happening – namely that the amount of “production” for a given amount of money is diminishing rapidly:

GDP Divided by MZM:


Because our money is debt, we are boxed in. Add more money, add more debt = impossible math. Pay down your debt, you have less money = impossible math. How hard is this to understand for crying out loud!

Of course there are savvy people in politics and in banking who fully get this. It is BY DESIGN. Debt is their tool that is used to control YOU. Pointing out the impossible situation of the system they create and perpetuate does nothing until we are fully ready to remove them from power. To do that all you must do is no longer consent to their lies! I, Nathan Martin, do not consent to their lies! Say it and repeat it, it will literally set you free.

Now let’s examine today’s announcement that Corporate Profits rose by 6.5% year over year in Q3, up from the .3% prior!

Highlights
Corporate profits in the third quarter grew to $1.507 trillion annualized-up from $1.470 trillion in the fourth quarter (previously $1.470) trillion). Profits in the third quarter rose an annualized 10.3 percent, following a 4.3 percent gain the quarter before (previously 4.3 percent). Profits are after tax but without inventory valuation and capital consumption adjustments. Corporate profits on a year-on-year basis advanced 6.5 percent, compared to up 0.3 percent in the second quarter.

Of course these “Corporate Profits” are complete nonsense too! They are there only due to the FRAUD. Remove the fraud, and corporate profits vanish. I’m talking about all the fraud, the mark-to-fantasy accounting, the offloading of stench filled debt onto Fannie and Freddie, the corporate shell games that are being played, the rating agency fraud, the “war on drugs” money laundering, etc., etc..

As proof of that, below is a chart showing the parabolic nature of corporate profits – they rose as the fraud rose, then for a very short time mark-to-market accounting was reimposed, profits crashed. They used their make money from nothing power to buy off Congress and the FASB, and BINGO, next thing you know mark-to-fantasy is back, and so are parabolic corporate profits:

Corporate Profits:


Gee, did your home value recover like that? How about your retirement plan? Does your budget look better than ever? How about your cost of living? To me, that chart is symbolic of the Occupy movement’s cry.

Once again, since it they who want to deceive us all with “productivity” propaganda, it’s time to revisit that very apropos Kennedy quote:

“Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product...if we should judge the United States of America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.

Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans.”
― Robert F. Kennedy

We are the many
You are the few

I, Nathan Martin, no longer consent to the lies.

Market Thread 11/21

I'm out of the area this morning, will be back this afternoon. In the mean time, please keep the daily commentary going, thank you for your contribution and participation!

Weekend Open Thread...

Weekend Funnies...

Morning Update/ Market Thread 11/18 - Legitimacy of the Fraudsters is Questioned Edition…

Good Morning,

Equity futures are bouncing higher this morning, the dollar is lower, bonds are slightly lower, oil is trying to regain the $100 mark after falling beneath yesterday, gold & silver took a tumble yesterday and are close to even this morning, and food commodities are breaking down from their recent ranges.

Since I’m talking about food commodities, I see what appears to be a very large Head & Shoulder’s pattern appearing in most. Below is a weekly chart of wheat, showing the development of that formation over the past year:



That is a huge pattern, a break below that neckline at 600ish would create a target at nearly half that level. Got to tell you, that would be a good thing, but of course it would be fought tooth and nail by those who wrongly were given the ability to control the production of money throughout the globe.

Looking at the S&P 500, it clearly broke down from that triangle yesterday, and today it is retesting the breakdown, something that is completely expected:



The meltdown of MF Global is really beginning to impact world markets. The derivative exchanges are refusing to release and guarantee funds, thus we're seeing the cost of credit start to rise sharply again and we're seeing players in the derivatives space begin to see the handwriting on the wall that says, "game over." The stock market is always the last to get the memo.

There were 245 people arrested in New York yesterday… thousands now have been arrested, harassed, and physically abused as a part of the Occupy movement. Contrast that to the treatment of those who have destroyed economies, and thus millions of lives, around the globe. No, protests are going to continue, they are JUST. It is the attempts to stop what’s coming that is unjust. Karma is something that usually catches up to people in the end, my advice to all government officials and especially to the police is that you best consider your futures and THINK long and hard about which side you are on and WHO the real perpetrators are. Because there is a comeuppance on its way, it is a classic fight between good and evil, and it is evil that is going to loose. If you examine historical examples of what happens to those who commit crimes against humanity after the revolution is over, you will want to make sure you are on the right side.

The evil I’m referring to is rooted in narcissistic greed. A few sick individuals who view the planet, and the people on it, as their personal fruit bearing garden - they think it exists just for them to walk around life taking from the planet and from others. They anointed THEMSELVES the bankers of the world and gave themselves the power to create money from nothing. No elections were held, no one voted for the IMF or the World Bank. And we all know that no one voted for the “Federal Reserve,” an agency that flies in the face of the Constitution. The people were sold out by a few narcissistic Congressmen just before Christmas Day in the year 1913. That was literally the crime of the century.

But the people are waking from their debt induced coma. It seems they have a nasty credit bubble hangover and are now pushing back against the sick pushers of usurious debt. In Europe, a few politicians are now waking up to the shame, just take a listen to the following two videos:





Nice to hear the truth, isn’t it? Powerful men are squirming in their seats. They should be, and if there is any justice in the world, they will be soon be squirming in their prison cells, cells once Occupied by protestors they rounded up and put in prison. Remember, the waves you cast in life come back to you.

Supposed “Leading Indicators,” which actually trail reality and are used to manipulate others, are released at 10:00 Eastern this morning.

All this attention on Europe diverts us away from our own horrific situation created by the very same sick and twisted individuals. How long ago was it we were bumping up the debt ceiling?

Washington, D.C. (CNN) - Congress passed a temporary spending measure on Thursday that will keep the federal government funded and open for business until December 16. The continuing resolution was necessary because the federal government is set to run out of money by midnight Friday.

Talk about sick, our nation should never have to be in debt, ever. There’s simply no reason for it. Allowing the private people who own and control the “FED” to exist was literally the treasonous act that surrendered our nation’s sovereignty. Occupy that.

Morning Update/ Market Thread 11/17 - Occupy Money(ness) Edition…

Good Morning,

Equity futures are neutral and hanging onto the bottom of the symmetrical triangle with the dollar down slightly, bonds down, oil flat, gold & silver down, and food commodities close to breaking below their ranges. As you can see in the S&P 500 futures chart (/ES) below, prices struck the bottom of the symmetrical triangle and then bounced. This is the game that just is as computers now drive the action:



Housing Starts fell in October, but came in slightly higher than consensus, while permits rose somewhat. Here’s Econosellyouanythingsucker:

Highlights
New residential construction essentially held steady in October but homebuilders may be increasingly optimistic as housing permits jumped. Housing starts in October nudged back only 0.3 percent, after rebounding a sharp 7.7 percent the prior month. The October annualized pace of 0.628 million units beat analysts' estimate for 0.605 million units and is up 16.5 percent on a year-ago basis. The dip in October was led by an 8.3 percent decline in the multifamily component, following a 35.0 percent spike in September. The single-family component rebounded 3.9 percent after a 2.6 percent decrease the month before.

By region, the decrease in starts was due to a 16.5 percent drop in the West. Other regions gained with the Northeast up 17.2 percent; the Midwest up 9.7 percent; and the South up 1.6 percent.

It is not gangbusters but it certainly is an improvement for future construction as housing permits jumped 10.9 percent after declining 5.8 percent in September. But the optimism is mainly for multifamily construction. The October rate of 0.653 million units annualized posted notably higher than the consensus forecast for 0.605 million. Permits in October are up 17.7 percent on a year-ago basis.

For the latest month, multifamily permits gained 24.4 percent while single-family permits rose 5.1 percent. On a year-ago basis, multifamily permits are up 48.0 percent while single-family permits are up 6.6 percent. Homebuilders clearly are more optimistic about the multifamily sector than single-family. Apparently, excess supply is still somewhat an issue for the single-family sector, along with continued soft demand.

Building more houses into falling prices simply makes no sense at all. And, gee, let’s put a chart to those numbers to give us a little historical perspective – you can call that “more optimistic” if you like, I call it a depression, as I note that none of the other recessions have produced numbers anywhere near these:

Housing Starts:


And while we’re looking at that obvious disaster chart, let’s point out some basic chart skills – it’s always important to consider the historical perspective. If you do not, then you might look at a chart like the one below, published by Econopretend, and conclude that the market is pretty darn stable:



Of course the housing market is stable, it went splat after falling off a cliff. Always consider the timeframe…

Jobless Claims fell by 2,000 in the prior week, not the 5,000 advertised by Econocomplicit who compares unrevised apples to revised oranges:

Highlights
Jobless claims continued a recent, mild downtrend with a 5,000 decline in the November 12 week to 388,000. Initial claims have decreased three weeks in a row and in four of the last five. The four-week average dipped 4,000 to 396,750.

Continuing claims, in data for the November 5 week, dropped 57,000 to 3.608 million.

The insured unemployment rate was 2.9 percent for the week ending November 5, unchanged from the prior week's unrevised rate.

Again, shifting out to put a historical perspective on the Initial Claims number, we know that it requires a number below 350k to indicate job creation. On the chart below showing the historical perspective, I drew a red line at the 350k mark, but keep in mind that line shifts up as the population grows. In the short view of Econoday’s chart, the recent trend is that claims are coming down, but looking a the historical trend we can clearly see that the trend is up:

Initial Claims:


When I overlay the Mean Duration of Unemployment (red graph) against the Initial Claims chart (blue graph), we can see that the trend is for the Mean Duration to begin falling a year or two after the Initial Claims begins falling, and therefore it may very well be that the Mean Duration of Unemployment chart has peaked as well:



Of course this cycle is very different. The unemployed stay unemployed and then fall off the rolls expiring first normal, and then emergency benefits. Our Unemployment figures fail to track these people and don’t count large portions of the population who are out of work.

Moving on to another lesson, I’ve been using the term money(ness) a lot lately to be inclusive of all things that act like money, including actual money which is a very small fraction of total moneyness these days. A good example of moneyness is margin, like many have in their brokerage accounts.

Margin allows you to effectively own and control more (stocks, commodities, whatever) in your account than you have actual money in your account. Say you have $100k, and a 20% margin account, then you can own $120k worth of stock. Now think about this… if everyone who owned stock used 20% margin, then the market would effectively be 20% larger in dollar terms than it otherwise would be. And neither the “Fed” nor any banks had to “print” money to accomplish this. That money(ness), in effect, is created by the brokerage houses, it is a form of leverage (it is also a form of money from nothing creation and therefore should be very regulated by the PEOPLE - again, giving brokerages the ability to make money from nothing is a privilege granted by the people and can be revoked).

Now imagine that you all at once ban margin, what happens to the stock market? What happens when you offer more margin? See why it has such a powerful effect? Indeed, it was margin that helped to create the “Roaring Twenties,” which popped in spectacular and historic fashion in 1929.

Today there is a ton of margin, but there is a massive, gigantic, historic sized pile of money(ness) that we call derivatives. Derivatives do the same thing as margin, they create leverage. The failure of MF Global is a huge red flag, it is very much like the failure of New Century Financial, the first subprime lender to fail. It took the market quite a while before the subprime dominos fell from that point, I’m just saying that I smell a crack in what has become the world’s largest money(ness) bubble.

Go Occupy! Bloomberg go to hell. Please take the time to watch the following video. Think about the courage of this young man – proud of him! That is all, have a nice day!

Morning Update/ Market Thread 11/16

Good Morning,

Equity futures are lower this morning with the dollar higher, bonds higher, oil zooming after breaking the $100 mark, gold & silver are lower inside of their recent ranges, and food commodities are slightly lower also still stuck in their ranges.

As you can see, equity prices are still in the middle of that symmetrical triangle. Symmetrical triangles are usually, but not always, continuation patterns. This one was entered from below, so in the technical analysis world you would expect it to break higher:



Italy has named their new President – Mario Monti. He calls himself an economist and not only is appointed President, but also the Finance Minister. One of the clients he has “advised?” None other than Goldman Sachs. So, we have a Central Banker installed in Greece, and now Monti in Italy. Boy, oh boy, is it going to be tough to rout them out… I can clearly see the central banker money from nothing puppet strings from here.

The U.S. Post Office just reported losing $5.1 billion in the past year! Oh, but if only it were that good, for they actually lost $10.6 billion considering they are underfunding their retirement OBLIGATIONS by $5.5 billion:

NEW YORK (CNNMoney) -- The U.S. Postal Service released its annual financial results on Tuesday, and they're nothing to write home about.

The agency reported an annual loss of $5.1 billion, as declining mail volumes and mounting benefit costs take their toll. The Postal Service said its losses would have been roughly $10.6 billion if not for the passage of legislation postponing a $5.5 billion payment required to fund retiree health benefits.

What a country! We vilify retirees because they were made a promise and worked hard all their lives. Our “rule of law” gives ALL stakeholders priority above retires! Talk about ridiculous. This is exactly how my Grandmother was screwed out of her entire retirement – she worked at Chaffee’s Department Store for more than 30 years. One year after she retired, they filed for bankruptcy and the judge paid all creditors first, 100% of her retirement was gone. And the law, when it’s followed which is rarely these days, is still the same in that regard. Yes capital needs to be treated nicely, but so do people who slave their entire lives away. This is one aspect of the law that needs fixing – retiree plans, promises made by companies, need to 100% funded 100% of the time, and they need to be untouchable by anyone – no bankruptcy judge, no government, no one except those who earned it. Of course the government thinks they can issue credit without paying for it and somehow magically in the future it will be taken care of… oh what a disaster.

The shyster Mortgage Banker’s Association reports that Purchase Applications fell 2.3% in the past week with refinance activity falling 12.2% - here’s Econoplicit:

Highlights
Mortgage application volume decreased about as sharply in the November 11 week as it increased in the prior week when rates, due to the crisis in Europe, dropped suddenly and substantially. Purchase volume fell 2.3 percent in the latest week with refinancing volume down 12.2 percent.

Rates were little changed in the latest week, at 4.23 percent for conforming loans ($417,500 or less) and at 4.56 percent for jumbo loans ($417,500 or more). The latest week includes Veteran's Day which blurs any conclusions from the data. At 10:00 a.m. ET this morning, home builders will post their housing market index.

The CPI fell .1% in October with “core” rising .1%. Remember, these figures are understated dramatically:

Highlights
Consumer price inflation finally softened in October at the headline level. The consumer price index in October declined 0.1 percent, following a 0.3 percent boost in September. The October figure came in lower than analysts' forecast for no change. Excluding food and energy, the CPI rose a modest 0.1 percent, matching September's gain and the consensus projection.

By major components, energy declined 2.0 percent, following a jump of 2.0 percent in September. Gasoline dropped 3.1 percent after spurting 2.9 percent higher in September. Food price inflation softened to a 0.1 percent rise after jumping 0.4 percent. Within the core, upward pressure was seen in medical care and apparel with declines in new vehicles and used cares partially offsetting.

Year-on-year, overall CPI inflation slowed to 3.6 percent from 3.9 percent in September (seasonally adjusted) in August. The core rate nudged up to 2.1 percent from 2.0 percent the month before on a year-ago basis. On an unadjusted year-ago basis, the headline number was up 3.5 percent in October, compared to 3.9 percent in September. The core was up 2.1 percent, compared to 2.0 percent the month before.

Today's numbers are consistent with the Fed's hope for an easing in inflation. However, the headline number will be under upward pressure in November from the rebound in crude oil prices.

Inflation is the bane of the people, but the boon of the bankers. Here’s how Shadow Stats calculates inflation, the way it used to be calculated prior to all the hedonistic tweeks – gee, that’s many multiples of the advertised inflation:



The Treasury International Capital (TIC) Report came in with a large positive number in September. Econoday credits flight to safety, I credit a complicit Treasury that is falsifying accounting along with the “Fed” who has effectively taken over the Treasury Department. I don’t trust one, not one figure, that comes from either of them. Still, here’s the latest edition of Inside Pravda:

Highlights
Volatility in international financial markets made for a second straight month of increasing inflow into long-term US securities, at $68.6 billion in September following August's revised $58.0 billion. These follow inflows of only $9.1 billion and $4.1 billion in the two prior months. US investors, repatriating their funds, were small net sellers of foreign securities in September.

But increasing demand for US securities is narrowly based into Treasuries in contrast to outflows for corporate bonds and especially US equities which is no surprise given the general move into safety and away from risk. Net outflows from equities were a very steep $19.2 billion in September following August's $6.5 billion outflow.

When including short-term securities the story is the same with net inflows at $57.4 billion in September vs an $89.3 billion inflow in August that follows significant outflows in the relatively quiet months of July and June. Country data on US Treasury holdings shows increases for the three major holders -- China, Japan, UK.

Here’s the entire TIC report for your fraudulent reading pleasure:

TIC Data Sept 2011

Are we having fun yet?

Get ready for some more “strength” in manufacturing numbers – I’m getting tired of talking about how our “productivity” is really a measurement of money(ness), we all know that we produce very little and that the bulk of our production has been sent overseas:

Highlights
In a convincing sign of economic strength, industrial production surged 0.7 percent in October reflecting a very strong 0.5 percent rise in manufacturing output and a 2.3 percent rebound in mining output. The rebound in mining follows a sharply downward revised 0.5 percent decline in September, a revision from an initial reading of plus 0.8 percent which is largely responsible for a downward revision to total September industrial production from plus 0.2 percent to minus 0.1 percent.

But the downward revision to September is a footnote compared to October's strength in the key manufacturing component where gains were led by a 3.1 percent surge in autos as the rebound from prior Japan-supply dislocations appears to be hitting a peak. Excluding autos, manufacturing still posted a second-straight and respectable 0.3 percent gain. Overall output of consumer goods shows a very strong 0.5 percent gain in the month with business equipment output extending its long run of strength, up 1.0 percent in the month.

Other readings in today's report include a five tenths surge in total capacity utilization to 77.8 percent which is the highest reading of the recovery (prior month revised to 77.3 percent). Output at utilities had little bearing on October's results, slipping 0.1 percent in the month.

It's important to note that today's report includes only shipments which are coincident data. Government data on factory orders and unfilled orders for September, which are leading data, were mixed though ISM data on October, released at the outset of this month, point to increasing levels of orders. Despite all the troubles in the domestic job sector and questions over European demand for US goods, the manufacturing sector is once again the focal piece of economic strength.

The traditional non-NAICS numbers for industrial production may differ marginally from the NAICS basis figures.

“Convincing sign of economic strength…” Oh boy.

Again, we manufacture money(ness) and send everything else overseas. Our manufacturing base has become so pathetic that just a few airplanes can send this data jumping one way or the other, and oh yeah, we really only have one major aircraft manufacturer left, and they actually manufacture the majority of their new airplanes overseas but assemble them here – where they wind up counting in this statistic because they use the sale price without accounting for the money sent overseas to pay for the subassembly work done there.

And while I’m talking about Boeing, they continue to blackmail Washington State, now getting ready to upgrade the 737, they are threatening to leave the state to get a better deal. They would pack up their assembly lines here, build new factories, move all their equipment, and hire new employees, just to get a sweeter deal from some other state willing to buy this great deal. Completely pathetic, no state should have the ability to offer financial incentives and tax breaks to corporations, period! This is a part of separating money from politics – politicians are not supposed to be in the business of buying favors from corporations, and vice versa. The playing field will only be level when money is separated from politics.

Below is a chart showing Capacity Utilization from about 1970. Remember that capacity utilization is a comparison between what infrastructure we have in place to produce, versus how much we actually do produce. All the numbers on this chart are historically pathetic, but remember that over these past four decades that we have been massively shedding capacity! So, not only is capacity falling, but we’re utilizing it less and less which means we are likely to continue to shed that excess capacity. Again, it is going overseas – just look at the overall trend of Capacity Utilization, one of the few measurements that isn’t taken in dollars:



Now take a look at the number of Employees in Manufacturing. We currently have the same number in Manufacturing as we did in 1942!! This, despite the population doubling in size! Again, this is one of the few measurements not in dollars, but in this case in people:



Yes, we have become automated in our production, but we have also shipped the majority of our manufacturing jobs away while we concentrate on producing financial schemes designed to enslave the world in debt.