Economy...
> Yesterday's close to the DJIA -500 points with the close 28,725. That is a 21% correction since January's high of
~36,500. 20% correction typically means bear market with a mild recession. 25% correctio typically means a
deep recession ala October 1987. 30% correction typically means a depression ala September 1929.
> Foreign exchange rates by country to USD,
- Canada .72 cents
- UK $1.12
- EU .98 cents
- Chicom Yen .14 cents
- Mex Peso .10 cents
With the USD being so strong, this means that exports will slow down. This amongst other economic realities
will add fuel to a deepened recession. We are in a recession now, will it be shallow or deep? With the Fed
moving so slowly in raising interest rates, inflation will continue.
> Inflation rate (CPI) by quarter compared to same time LY,
- January 2022 +7.7%
- March +8.5
- May +8.6
- July +8.5
- Annual +8.38
> GDP
- Q1 -1.6%
- Q2 -0.6
- Q3 +0.3 Estimate. Based on recent home sales information, I suspect the Q3 GDP will be negative (-.2% to
-.5%). Not much change from Q2's final number.
> U6 unemployment rate. The true unemployment rate. Watch this rise over Q4.
- YTD average, 7.14%
With all of the recent news that large public companies are laying off workers, Ford, The Gap, Tesla, Amazon,
Wayfair, etc. come immediately to mind. Also, unemployment rates will be forced to rise due to Hurricane Ian.
> Housing sales,
- Q1 -2%
- Q2 -13%
- Q3 -11% (estimate)
> Interest rate hikes. This is needed to slow down the economy. Currently to buy a home with a fixed mortgage
will run you ~6.8% depending on your credit score. Interest rate by the Fed is an important way to slow
down the economy hence inflation rates. Interest rate hikes affect not only mortgage rates but business loans,
your credit card rate, etcetera.
> Recent news events,
- Hurricane Ian.
- Nord Stream I & II.
- US troops in EU theater being redeployed to the borders of Russia, Belarus, and Ukraine.
- CONUS troops being redeployed to bases for easy airlift across the pond.
- Putin's new saber raddling and threatening strategic nuclear use.
- Chinese troops circling Beijing. Is Xi in or out?
To add to PKv's comments, President Biden and or his puppeteers need an economic collapse to implement his
Build, Back, Better agenda which is the US
ofA's version of EU's
the Great Reset.
Build, Back, Better is a newer more modern version of Fascism using the Chinese social credit system to control the populous. The western version is called ESG (Environmental, Social, Governance) scores. Most of you who follow
Unchainedpreppers know this. However, we do have new folks joining us daily so I am
ESG would work hand in hand with Digital Currency. Basically, your ESG score would be determined on what you spend money on. Investments (Oil bad wind mills good), food (Vegetable good beef bad), home heating (wood bad electric good), what vehicle you drive (fossil fuel bad electric bad), media (
Unchainedpreppers bad MSM good), sporting supplies (firearms bad bat mitten good), etcetera. Depending on your ESG score, will determine a lot of things like your loan rates for your next home.
So there you go. I have not even gotten into the dark, cold, and deadly winter coming to the EU. Who wants to bet that we will help out our allies in the EU at the detriment of you, with crude, natural gas, coal, other?
