Click here: The Weekly Beacon – June 17 2022

We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: Inflation, Wage Growth, CPI, Energy Prices, Powell, Interest Rates, FOMC, Bad Policy, Transitory Inflation, U.S. Midterms, Republican Senate and House, Biden Administration, Red Wave?, Mortgage Market, Real Estate, Mortgage Records, Mortgage Rate by City, Crypto Markets, Bitcoin, Ethereum, NFTs, Bored Apes, Liquidity Crunch, Coinbase, Jim Cramer, Bad Calls, Cathie Wood on Bitcoin, EV SPAC Boom, EV Competition, Tesla, Rivian, Lucid, No Revenue, Lots of Capital, Misleading Statements, Failed Projections, Oil, Gas, OPEC Production, Quota, Windfall Tax, SPR Release, Gas Prices in the Summer.



The Destruction of the Average Worker

Inflation destroys the poor and middle class the most. When hourly wages do not keep up with prices, wage value decreases for the hardest working people. The upper class enjoys inflation, things that cost them relatively low percentages of their wealth go up marginally and real assets/ financial assets go up two-fold (real estate, collectibles, stocks). What we have seen over the last year and a half has been exactly that (minus the recent wind-down in equity markets).

Real wage growth has been down for 14 months in a row. Workers are losing and billionaires are winning, maybe that’s why billionaires always lobby for more money printing because it will help them.

Charts do not look good when paired with charts like this:

The highest CPI in 40+ years and interest rates are basically the lowest they have ever been.

How are they going to fight inflation? Well, rate increases as we are sure you are aware; the U.S. and Canada are both increasing interest rates which will slow inflation down. The major issue with that, we are now in an equity bear market.


Click here to read the full  June 17 2022 Commentary