Morning Notes - 7/14/2022 | Archimedes Methodologies

Good Morning:

It has been a rough week, as expected. Historic inflation and the 15th month of declining real wages topped yesterday’s CPI report.
Even in the 1970s, at least real wages were rising in the face of rampant inflation!
The S&P 500 came back up to the WEM low yesterday just to let the dealers and market makers escape before Friday’s expiration. After they were done unwinding their hedges, the market rolled over again in the afternoon.
Depending on the wholesale inflation report this morning, as well as JP Morgan’s earnings report, we may test the June 17th low at 3639.
I continue to believe, based on the rapid decelaration in most commodity prices, that inflation has peaked in the short term, and the greater concern now shifts to recession and corporate earnings. We will begin to get a clue from the financial sector today with JP Morgan Chase.
Predictions are tough at the moment, we simply need to get aligned with the market every day and go with the flow. We will be in the trading room today about 30 minutes after the open.
The DEM is roughly 60 points plus or minus yesterday’s settlement at 3804.50. We may gap down to that level as we did yesterday, and then recover or not depending on those pre-market reports. Gap Rules will be applicable on a True Gap.
Don’t forget that monthly and weekly options expiration are tomorrow. It has been rare to rally into expiration over the past year. so you may want to sit the market out until next week.
These very avoidable inflation numbers make me sick to my stomach.
I am feeling a rant rising in my blood…
This morning we get the wholesale inflation numbers (PPI report), and the consensus is now 10.1%.
This telegraphs EARLY stage price increases. Two results will follow – higher consumer prices a few months from now and/or reduced corporate earnings if companies eat the higher prices.
As mentioned above, we hear about earnings and forward guidance from Jamie Dimon at JP Morgan Chase this morning and more banks next week. The Chase report should be interesting when combined with wholesale inflation.
The inflation umbers reflect a U.S. Government run amock, and the abject failure of the left’s Modern Monetary Theory (the latest version of “This Time It’s Different.”
The rant is building…
I don’t know why we have to go through this self-flagellation every so often and put the authoritarian communists in charge (though I am not sure it was our choice this round).
And in any event. it does not seem to matter any longer whether there is a “D” or an “R” after their names, with few exceptions. They are all in on it.
Nothing will be the same until we purge this octogenarian group of government grifters and their thieving cronies. Theycontinually rob our treasury like the proverbial fox in charge of the hen house. All we will have left is an economic collapse.
No worries though, Klaus and the WEFstand by to rescue us from the collapse with their “Great Reset.”
Remember, “You Will Own Nothing and Be Happy.” Isn’t that typical leftist projection?
Whatever the left says, the opposite is true. How about, “We Will Own Everything, and We Will be Happy.” Isn’t that the truth of the Great Reset, Klaus Schwab? Or should I call you by your real name, “Goldfinger” or “Jabba the Hut?”

And I should refrain from saying, “I told you so,” but I did earlier this year. In my latest episode of “Can You Believe It!” – wait for it – Janet Yellen proposed price controls yesterday.
Remember how that worked in the 1970s? It made everything worse, as price controls always do. But hey, it will work for Janet this time because she is smarter, right?
As I always say, Economics’s four most dangerous words are “this time it’s different. “
It’s never different. Leftist and Communist policies never work. And they will never work. The policies are the antithesis of human nature.
Anyway, it likely is an insult to attribute the current regime’s policies to Communism or Collectivism.
This regime is into pure, straight-up, authoritarian rule along the lines of the Chinese Communist Party model.
Pelosi, Shumer, McConnell and the rest are seethingly jealous of the Chinese model and cannot wait to implement it here. Maybe they will buy a franchise from the CCP?
The Chinese are not communists either, at least as Marx originally proposed. They are a criminal enterprize of dictators.
And now the full rant…
But we have a free press, right? That proverbial “fourth” pillar or branch of a democracy? How is that working? As Zero Hedge points out this morning – and it was what triggered my rant – not so well. But you already know this. If not, let me stimulate your memory:
- The border agents whipped illegal immigrants. The media, Justice Department, and other Democrats knew this was a lie from day one but didn’t care.
- Women are going to die because abortion is limited or prevented. This is a despicable lie meant to scare everyone. Not one state that restricts abortion prevents the termination of a pregnancy when the mother’s life is in danger.
- What the Supreme Court did was unconstitutional. This is pure B.S. The court gave the lawmaking decision back to the legislative bodies where laws are supposed to be made. The court that ruled in 1973 committed the unconstitutional act when they essentially made up constitutional law with their Roe V Wade decision.
- The “Hands Up, Don’t Shoot Lie.” This lie was meant to gin up racial hate and division against white cops. How many cops have been injured or killed because so many in the media and others spread this lie? Hands up, don’t shoot, was built on a lie. And the design has been to rid law enforcement agencies and the military of Trump supporters and other conservatives. These were the last democratic institutions that the left had not infiltrated or controlled. Make no mistake, their coup is now complete. The left now controls every major institution in our country. Brace yourself.
- That January 6th was an armed insurrection. The FBI determined it wasn’t planned or organized, and no arms were confiscated. The media and other Democrats show how dishonest they are when they refuse to show that Trump said, “March peacefully and patriotically.” That clearly shows that he did not want or encourage violence. The goal of the hearings and reporting is not to get to the truth, it is purely political to destroy Trump. Make no mistake, Trump will be indicted, arrested, and charged by this corrupt Biden Justice Department with Merrick Garland in charge. Remember him? Going after parents at school board meetings as domestic terrorists? Also, he was Obama’s Supreme Court nominee passed over by Trump. Revenge is sweet, right?
- That the 2020 election was pure as the driven snow. The media and other Democrats know that many states intentionally violated election laws and that Mark Zuckerberg’s money violated laws but don’t care. Breaking: Special Counsel Finds Mark Zuckerberg’s Election Money Violated Wisconsin Bribery Laws. Have you seen the documentary 2000 Mules yet? If you want to immediately recognize a leftist lie, spot the repetitive mantra. “The safest and most secure election in U.S. history.” How many times and from how many different voices did you hear that phrase? They doth protest too much…
- The Antifa and BLM riots were mostly peaceful. You have to admit, it took a lot of gall for the CNN reporter to repeat the mantra as the town was burning in the background. This regime is so full of itself and believes that we are so stupid that they will lie to our faces and tell us we are not seeing what is obvious.
- That the U.S has always been a racist country, that all whites are racist and privileged, and that all other races are oppressed. The main people in this country obsessed with race and racism are the people trying to divide and conquer us using Marxist tactics and tribal identities. Ultimately, it won’t work in America because, by and large, we are a melting pot and not racist. Nice try!
- That the vaccines will prevent the virus. The media sought to silence anyone who disagreed with the false narrative.
- That the CDC based everything on science. There was no science that showed masks worked, that we needed six feet of social distancing, that Plexiglas prevented spread, and that schools and other businesses should be closed, but facts didn’t matter. When Trump and others suggested the Wuhan lab was the source of the virus, the media buried the story on behalf of Dr. Fauci by calling it a disproven conspiracy. How many people may have died from this or a future pandemic because investigations were delayed? It is estimated that more than 50 million men in this country now have undiagnosed myocarditis due to these vaccines. How much evidence has alrready been suppressed or destroyed?
- The media spread the conspiracy theory that Trump colluded with Russia for years as they conspired with Democrats to destroy Trump despite zero evidence. There were endless investigations. If we all end up dying in a Nuclear War, the seeds of that war were planted by Crooked Hillary and her minions as they sought regime change in Russia through Ukraine and ruined our relations with them. What many people don’t know is that a young Vladamir Putin was a Klaus Schwab protoge (in the same class with Justin Trudeau, Emmanuel Macron, and Netherlands President Mark Ruffi) who rejected the Great Reset. The proverbial prodigal son. He opposed the Great Reset, just like China, so both Countries need regime change (per the WEF). It is no more complicated than that.
- The media and other Democrats repeatedly lied that Trump never denounced white supremacists even though he did it many times. They repeated the lie to gin up racial hate and division as they always pretend they are for uniting the country. Trump denounced white supremacy ’38 times’ in campaign videos amid Biden-Harris criticisms.
- That the Hunter Biden laptop was Russian disinformation. They made this up to bury the story before the election as they campaigned for Biden. Hunter Biden is a disgusting human being (and the apple does not fall too far from the Pedo Peter tree). All of the leftist ex-government and intelligence agency officials who signed the letter to the New York times backing the false narrative should be stripped of their government security clearances, retirement benefits and tried for treason. In any event, if the people ever get control of this government again, there is the a great list of officials that need to be sent to jail – preferably the one illegally holding J6 protesters.
- That the science is settled that humans, fossil fuels, and CO2 cause warming. There is not one piece of scientific data from the last 150 years that supports this theory, only easily manipulated computer models that have always been wrong. Premised entirely upon an unsubstantiated “existential climate change threat,” America is already paying huge penalties, as record gasoline and diesel prices are rippling through every corner of business and driving up food and commodity costs with devastating 8.6% four-decade- high inflation.
  - Bear in mind again, that all such unnecessary grief was founded upon enormously speculative hypothetical climate models and hysterical worst-case doom projections which appear far off track from reality.
  - Although Planet Earth continues to warm its way in fits-and-starts out of the Ice Age that ended about 12,000 years ago, it was just as warm 2,000 years ago and again 1,000 years ago — long before the Industrial Revolution introduced smokestacks and SUVs.
  - Economies all over the world are now on the verge of collapse and Western Democracies have surrendered their national security to this corrupt, Green Energy boondoggle.
  - But it is heads the leftists win and tails we the people lose. The collapse allows for the “Great Reset” where you will be micro-managed to a level that you will be told and monitored as to how often you can wash your jeans each week. And, if you dont comply, your washing machine will rat you out. I kid you not!

That Trump’s tax rate cuts cost the country trillions. This lie is continually repeated even though government revenues have risen substantially with lower rates
That Obamacare would not take away choice and would reduce costs. How is that one working out for you? Obamacare was sold on a pack of lies. Lack of transparency is a huge political advantage. Basically, call it the ‘stupidity of the American voter’ or whatever, but basically that was really, really critical to getting the thing to pass. First, the bill’s authors manipulated the nonpartisan Congressional Budget Office, which issues gold-standard cost estimates of any legislative proposal: This bill was written in a tortured way to make sure CBO did not score the mandate as taxes. Why? Because if CBO scored the mandate as taxes, the bill would have been dead on arrival. Remember the Pelosi mantra? Pass the bill, you can read it later.
That Trump was putting kids in cages at the border when the pictures were from Obama/Biden years. This lie was meant to gin up racial division and hate.
That the Obama and Biden justice Dept were apolitical. That no one is above the law.
We have continually been told how scandal free the Obama/Biden administration was. What a joke:
- Obamacare lies.
- Fast and Furious lies.
- IRS targeting.
- Hillary’s illegal server and kickbacks.
- Kickbacks of billions of taxpayer dollars to Iran tyrants.
- Dictatorially ordering the Justice Department to stop an investigation into drug running by terrorists to appease Iran.
- How many people have died from drug overdoses and terrorism because Obama was more interested in pleasing Iran tyrants than stopping criminals?
- Slush funds at CFPB, Justice, and EPA, where they shook down corporations to give kickbacks to left-wing supporters.
- And the biggest scandal of my lifetime that dwarfs Watergate:
- - The Obama/Biden Administration used government personnel and taxpayer money to destroy Trump based on the fictional dossier from a foreign national which was paid for by the DNC and Hillary. Sadly, the media, instead of holding the corrupt Obama administration to account, participated in spreading disinformation. They are puppets. And don’t forget how this has impacted Ukraine’s current conflict, which is rapidly leading the world into Nuclear War.
- Besides indoctrinating the public with intentional lies, the media buries truthful stories that would harm the politicians and policies they support.
- The media knows how corrupt the Bidens and Clintons are but continue to bury the stories.
- They know how disastrous the border is but don’t care.
- They never cared about all the women the Clintons physically and mentally abused and sought to destroy.
- The media even buried stories about Jeff Epstein to protect the powerful. Where is the f’ing list? Where are the home movies? Every Epstein home had cameras in every room. Nobody in the press even asks the questions. Do you know where the movies and lists are? In the hands of the U.S. Intelligence agencies to be used any time one of these powerful pedophiles gets out of line.
- How many women and young girls have been physically and mentally abused for years because the media has been in the tank? Leaked tape: ABC News killed an interview with an accuser of Jeffrey Epstein.
- And I will refrain from saying “I told you so,” but I did earlier this year. In the latest episode of “Can You Believe It!” – wait for it – Janet Yellen proposed price controls yesterday.
We know what happens. As I always say, the four most dangerous words world words in economics are this time it’s different. It’s never different. Leftist and Communist policies never work, period. They don’t work now. And they will never work.

A.F. Thornton

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Morning Notes – 7/14/2022

Morning Notes – 7/14/2022

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AF Thornton

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Morning Notes – 7/14/2022

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