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Florida sheriff defends deputy-involved shooting after ambush attack: ‘Evil can never be dead enough’

Florida authorities released dash camera footage Thursday of a deputy-involved shooting that ended with a dead suspect — a man who was out on bond for drug trafficking and had multiple convictions for violent offenses, officials said Thursday.

Brevard County Sheriff’s deputies Brian Potters and Tyler Thoman were conducting a traffic stop on Aug. 30 in Melbourne, 70 miles southeast of Orlando, when they were ambushed and fired upon, Sheriff Wayne Ivey said in a video detailing the encounter.

“The attack and ambush [were] perpetrated by a violent, career criminal, with a history of 40 charges for crimes including drug trafficking, aggravated assault while discharging a firearm, battery on a law enforcement officer, and attempted first-degree felony murder,” he said. Deputy Thoman is seen talking to a woman outside her vehicle about the 2-month-old baby and dog in the backseat while another vehicle occupant is leaning against the rear of the car. The suspected shooter, whose identity has not been not released, is sitting in the back seat.  When Potters asks him to exit the car, the suspect opens fire and takes cover at the front of the vehicle, putting the baby seated inside at risk, Ivey said. Potters is heard saying he was struck by gunfire around the same time the suspect appears to be wounded by return fire.  As the deputies move to the side of a police cruiser, the suspect attacks Potters from behind after his rifle jams, striking him in the head with the butt of the weapon before they both fall to the ground, Ivey said.  Thoman then fired multiple shots at the suspect, who was killed. Potters was shot in the leg and sustained head lacerations, tissue damage and bone fractures, the sheriff said.  Ivey said the two occupants standing outside had nothing to do with the ambush attack. In total, 61 rounds were fired, he said. “Let there be no doubt, this individual got exactly what he deserved,” the sheriff said. “And to those out there that might be foolish enough to ask why we shot him so many times, the answer is simple: evil can never be dead enough.” Ivey ended his breakdown of the incident by lambasting the criminal justice system for allowing the suspect to be free despite his long criminal history. “This case is a perfect example of what is wrong with our criminal justice system, he said. “When a registered career criminal with 23 felony charges, 17 misdemeanor charges, multiple convictions for violent offenses and two active and pending drug trafficking cases is out on our streets where he can attempt to kill our deputies and put other lives at risk, something is wrong with our system.” Nick Note: As you know i rarely report these kind of stories. But will all the law enforcement bashing especially of white officers when stopping blacks i though this incident  deserve proper airing. As you can see for yourself the Blacks were being treated with dignity and respect by the police. Until the monster attacked everyone in sight. Their are a lot of unanswered questions that the police chose to ignore. Like do you really believe the male driver and the female seated in the back seat with the animal did not know he was carrying fully Loaded AR15. THE UNTOLD STORY IS THE THUGS ARE WINNING HIDING UNDER ATTACKS ON POLICE PRETENDING THEY ARE THE VICTIMIES. THE COURTS AND CRIMINAL JUSTICE SYSTEM RESPONDING TO THE NEGATIVE LAW ENFORCEMENT BIAS ESPECIALLY WHEN IT COMES TO BLACKS ARE LETTING THE ANIMALS PREY ON SOCIETY…

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Czech gunmaker bets on riding Colt into new markets

PRAGUE, Sept 13 (Reuters) – For Czech gun maker CZG-Ceska Zbrojovka Group (CZG.PR), its recent acquisition of the Colt brand carries both the potential to become a major player in the global firearms market and the challenge of reviving the fortunes of a fabled U.S. name. Shares of CZG, which listed on the stock market last October, have surged 60% in Prague this year as investors welcomed solid revenue growth and the company’s $222 million purchase of privately-held Colt Holding Company – a deal finalised in May that will make CZG a competitor for U.S. leaders such as Smith & Wesson (SWBI.O) and Sturm, Ruger & Company (RGR.N). Colt, with plants in the United States and Canada, will give CZG the capacity to expand production beyond its main factory in the Czech Republic and allow it to compete in U.S. military contracts because it will fulfil “Buy America” regulations requiring U.S. production. CZG says it aims to almost double CZG and Colt’s pro-forma combined revenue of around $570 million last year within a few years – putting it on a par with Smith & Wesson’s annual net sales of $1.1 billion in the last fiscal year.

In 2020, the United States accounted for 66% of the Czech gunmaker’s annual revenue, mainly sales to individuals and police departments of guns under its CZ (Ceska Zbrojovka), Dan Wesson and Brno Rifles brands.

“Colt is an important step in realising our vision of getting to 1 billion (euros) in revenue by the end of 2025,” CZG’s Chairman Jan Drahota told Reuters in an interview at the company’s Prague headquarters. “We … will be thinking how to make sure the brand is even bigger than it is now and introduce it to wider (markets). “It is a privilege, but it is also pressure on us,” he said. Some of the pressure could come from investors. The revenue target looks ambitious to some analysts and will require investment by CZG, whose roots stretch back to before World War II. “It is definitely an ambitious goal,” said Pavel Ryska, analyst at J&T Banka in Prague. “In my view, it could be met on two conditions. First, the U.S. civilian demand remains robust and keeps rising, and second, CZG adds further production capacity either through its own capex or through additional acquisitions that are well executed.” Founded by Samuel Colt, the U.S. company produced one of the first revolvers and its single-action revolver known as “The Peacemaker” was synonymous with lawmen and outlaws in the Wild West in the 19th century. By 2015, however, the company was filing for bankruptcy protection following a series of missteps and the loss of a key contract with the U.S. Army. Those issues allowed rivals to steal a march on Colt, although it emerged from bankruptcy in 2016 and revenue rose by a quarter last year.

An employee presents a rifle inside a showroom of the Ceska Zbrojovka small arms factory in Uhersky Brod, Czech Republic, August 31, 2021. Picture taken August 31, 2021. REUTERS/David W Cerny
Employees work in the Ceska Zbrojovka small arms factory in Uhersky Brod, Czech Republic, August 31, 2021. Picture taken August 31, 2021. REUTERS/David W Cerny
An employee works in the Ceska Zbrojovka small arms factory in Uhersky Brod, Czech Republic, August 31, 2021. Picture taken August 31, 2021. REUTERS/David W Cerny

CZG, which used IPO proceeds and issued bonds to help finance the Colt deal, will outline investment plans later this year. They will include possibly introducing new products and investing in upgrades at Colt’s main factory in West Hartford, Connecticut, Drahota said. Upgrades will also mean “essentially an enlargement of capacity because of underinvestment in the past,” he said. CZG is also considering whether to produce some CZG products in the United States, he said, adding there is little overlap with Colt products. “We have to consider from a group level what … the production split will be at each location,” he said. “One plus one is more than two. We believe we can leverage on each other’s success.” About half of Colt’s revenues in 2020 came from the massive U.S. military and law enforcement (M&LE) segment and Drahota said he saw “huge room” to grow the brand in global civilian and M&LE markets. Analysts at Czech-based Fio Banka estimate the military and law enforcement portion of CZG’s North American sales will climb to 50% from 10% with the Colt acquisition, boosting the company’s revenue as M&LE firearms fall into higher price categories. Global demand for small firearms is expected to rise from around 1.09 billion units in 2019 to 1.26 billion units in 2023, CZG said in its annual report, citing the BIS Small Arms Market Report, with the civilian market now accounting for 62% of sales and military and law enforcement 38%. The market’s good growth prospects have helped drive shares of Smith & Wesson and Sturm, Ruger & Co. up 21% and 16% respectively this year. The market’s good growth prospects have helped drive shares of Smith & Wesson and Sturm, Ruger & Co. up 21% and 16% respectively this year. CZG, whose operating profit rose 12% last year, has until now mainly competed with European groups like FN Herstal of Belgium, Beretta of Italy and Glock Gesellschaft of Austria and struck deals last year with the Czech Army and law enforcement bodies in Brazil and Kenya, as well as contracts to help rearm Hungary’s army. Buying Colt will also give it exposure to the UK and Canadian militaries, among others, and Drahota said the market will continue to shift to more advanced weapons as demanded by military customers. CZG, which last year took a minority stake in Spuhr i Dalby AB, a Swedish maker of optical mounting solutions for weapons, would also look at further acquisitions, especially in areas like optics or optoelectronics. “We want to grow by acquisitions but we will be disciplined,” Drahota said. Nick Note: I was shocked when the US military gave up the Colt 45 for the Glock pea shooter ray gun…….. Now this…… what is the world coming to……..

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From zippers to glass, shortages of basic goods hobble U.S. economy

Shortages of metals, plastics, wood and even liquor bottles are now the norm. The upshot is a world where buyers must wait for delivery of items that were once plentiful, if they can get them at all. Along with the shortages come hefty price increases, which has fueled fears of a wave of sustained inflation. There’s growing tension among Federal Reserve policymakers over how to gauge the long-term impact on prices. Some Fed policymakers are more convinced than others that price pressures will recede after some of the supply chain disruptions are resolved. How this debate evolves could influence how quickly the Fed moves to reduce the pace of asset purchases launched at the start of the pandemic, and how soon it lifts the policy interest rate from its current level near zero.

Rash and other local producers were part of a wide ranging forum recently with Richmond Fed president Tom Barkin that focused on the challenges to the U.S. recovery posed by supply chain issues that are not getting resolved as fast as policymakers had hoped. Shortages are hitting everything from bulldozers to bourbon. Heavy-equipment maker Caterpillar Inc (CAT.N) warned in July that its profits would suffer in the current quarter in part because of rising prices on hard-to-get components. The company said, among other things, it is looking for ways to get supplies from non-traditional sources to deal with shortages of plastic resin and semiconductors. Lawson Whiting, chief executive of spirits producer Brown-Forman Corp (BFb.N) , told investors earlier this month that shortages of “key packaging materials, most notably glass” continue to create problems for the maker of brands such as Jack Daniel’s and Woodford Reserve. New challenges continue to arise, including hurricane disruptions to U.S. oil refineries which is again threatening supplies of plastics and other basic materials. Some industries are rushing to build new factories, including semiconductor producers under pressure to feed a growing appetite for chips needed in cars and electronics. But not all producers are eager to build new plants. The bike industry, for instance, is heavily concentrated in Asia and producers there worry that the current surge in demand is only temporary. “The Asian factories have seen this time and time again,” said Brent Graves, CEO of Cane Creek Cycling Components, another small manufacturer in Fletcher, N.C., which relies heavily on Asian suppliers for bike parts. “They say, ‘Well, we will run some extra overtime.’ But in terms of raw investment in facilities, on the whole they are reluctant to do it.” Compounding the current problem are clogged supply lines. With so many manufacturers rushing to build supplies at the same time, the containers, ships, and trucks needed to move the goods often aren’t available, and have soared in cost when they are. That has disrupted some of the mechanisms that normally help keep supplies, and prices, in check. David Reilly, president of United Solutions, a plastics maker in Leominster, Mass., said soaring resin prices – he estimates they’re up 100% for some types in the past year – is his biggest challenge. Normally he would have his buyers scouring overseas markets, including China, for cheaper resins. “But we can’t do that,” he said, because shipping prices have risen so much that they wipe out any price advantage. “Right now, producers in North America don’t have the stiff competition that they would if container prices came back down. Nick Note: This will not resolve itself anytime soon.

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N. Korea test-fires new long-range missile CAPABLE OF A NUCLEAR PAYLOAD

SEOUL (Reuters) -North Korea carried out successful tests of a new long-range cruise missile over the weekend, state media said on Monday, seen by analysts as possibly the country’s first such weapon with a nuclear capability.  The missiles are “a strategic weapon of great significance” and flew 1,500 km (930 miles) before hitting their targets and falling into the country’s territorial waters during the tests on Saturday and Sunday, KCNA said.  The latest test highlighted steady progress in Pyongyang’s weapons program amid a gridlock over talks aimed at dismantling the North’s nuclear and ballistic missile programs in return for U.S. sanctions relief. The talks have stalled since 2019.    North Korea’s cruise missiles usually generate less interest than ballistic missiles because they are not explicitly banned under U.N. Nations Security Council Resolutions.  “This would be the first cruise missile in North Korea to be explicitly designated a ‘strategic’ role,” said Ankit Panda, a senior fellow at the U.S.-based Carnegie Endowment for International Peace. “This is a common euphemism for nuclear-capable system.”   It is unclear whether North Korea has mastered the technology needed to build warheads small enough to be carried on a cruise missile, but leader Kim Jong Un said earlier this year that developing smaller bombs is a top goal. The two Koreas have been locked in an accelerating arms race that analysts fear will leave the region littered with powerful new missiles.  South Korea’s military did not disclose whether it had detected the North’s latest tests, but said on Monday it was conducting a detailed analysis in cooperation with the United States. The U.S. military’s Indo-Pacific Command (INDOPACOM) said it was aware of the reports and was coordinating with its allies and partners. “This activity highlights (North Korea’s) continuing focus on developing its military program and the threats that poses to its neighbours and the international community,” INDOPACOM said in a statement  Rodong Sinmun, the ruling Workers’ Party’s official newspaper, ran photos of the new cruise missile flying and being fired from a transporter-erector-launcher.  The test provides “strategic significance of possessing another effective deterrence means for more reliably guaranteeing the security of our state and strongly containing the military manoeuvres of the hostile forces,” KCNA said.  It was seen as the North’s first missile launch after it tested a new tactical short-range ballistic missile in March. North Korea also conducted a cruise missile test just hours after U.S. President Joe Biden took office in late January.  Jeffrey Lewis, a missile researcher at the James Martin Center for Nonproliferation Studies, said intermediate-range land-attack cruise missiles were no less a threat than ballistic missiles and were a pretty serious capability for North Korea.  “This is another system that is designed to fly under missile defence radars or around them,” Lewis said on Twitter.

  Cruise missiles and short-range ballistic missiles that can be armed with either conventional or nuclear bombs are particularly destabilising in the event of conflict as it can be unclear which kind of warhead they are carrying, analysts said.

Kim Jong Un did not appear to have attended the test, with KCNA saying Pak Jong Chon, a member of the Workers’ Party’s powerful politburo and a secretary of its central committee, oversaw it.  The reclusive North has long accused the United States and South Korea of “hostile policy” toward Pyongyang. The unveiling of the test came just a day before chief nuclear negotiators from the United States, South Korea and Japan meet in Tokyo to explore ways to break the standoff with North Korea.  China’s foreign minister, Wang Yi, is also scheduled to visit Seoul on Tuesday for talks with his counterpart, Chung Eui-yong. Biden’s administration has said it is open to diplomacy to achieve North Korea’s denuclearisation, but has shown no willingness to ease sanctions. Sung Kim, the U.S. envoy for North Korea, said in August in Seoul that he was ready to meet with North Korean officials “anywhere, at any time.” A reactivation of inter-Korean hotlines in July raised hopes for a restart of the negotiations, but the North stopped answering calls as annual South Korea-U.S. military exercises began last month, which Pyongyang had warned could trigger a security crisis. In recent weeks South Korea became the first non-nuclear state to develop and test a submarine-launched ballistic missile. Nick Note: The world will deeply regret not engaging Kim Yon Num Chucks will the price is still small. He has become the nuclear tipped rocket man and is rapidly becoming a formidable foe…… STUPID!

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Markets Sniffing Out The End Of The Delta-Driven Economic Slowdown

While Covid infections continue to rise and weigh on economic data, the markets seem to be seeing a receding in the impact on the horizon. Some might point to the weakness in U.S. stocks last week to refute the point, but that selling was likely exacerbated by investors realizing capital gains in advance of the likely increase in the capital gains tax rate. Since late July, the U.S. economic surprise index has been below zero, with readings below zero indicating that economic releases have been weaker than expected. In contrast, positive readings indicate better than expected economic releases. Despite the continued weakness in the U.S. economic surprise readings, the 10-year Treasury yield has begun to move higher. This weakness in the economic surprise data combined with rising yields is not just a domestic phenomenon. While the Citi global economic surprise readings have been trending lower since mid-June and are currently negative, the percentage of debt currently with a negative yield has also been trending lower since late August. A rise in the amount of negatively yielding debt has typically been associated with weaker expected economic growth. The move higher in global bond yields corresponds with the U.S. 10-year Treasury yields rising While Covid infections are continuing to rise in the U.S. and many other countries, perhaps the decline in the rate of change is some indication that things are already beginning to improve. The momentum of U.K. infections seems to have peaked for now, and the U.S. appears to be following suit. The speed of increase in U.S. Covid cases finally declined after 11 straight increases in week-over-week cases. Interestingly, Japan adds another data point to this narrative since Japan has had significant Covid issues, and the Japanese economy is very dependent on the global economy. The economic surprise data in Japan has been weakening since late May, while the pace of infections began to rise sharply in July. While the weekly growth of infections remains high, the peak momentum was in late August. Japanese stocks hit their recent bottom at roughly the same time as the pace of infections peaked and have outperformed the S&P 500 by almost eleven percentage points since that time. The TOPIX just made a 30-year high by exceeding the level set back in March 1991 The Senate returns from recess on September 13, so the whirlwind of legislative activity from Congress is beginning. While much of the tax and spending bills will likely take until the fourth quarter to be completed, the contemplated actions are likely to add noise and volatility to markets. In addition, the effective date of any proposed increase in the capital gains tax might be on September 15, when the Senate has set the deadline for committees to submit their reconciliation bills. Tuesday’s August consumer inflation readings should still reflect pricing pressures, with the year-over-year rate expected to be at 5.3%. Supply chain issues remain to haunt the data along with demand, but the year-over-year rate should have peaked in July. The August retail sales report should continue the streak of weaker U.S. economic readings. Spending on services had been keeping the retail sales levels near peak levels with goods spending softening. The increase in Delta variant infections likely negatively impacted services spending on the margin. In addition, supply chain issues will put a lid on auto-related sales. Keep an eye on the continued reaction to the weaker economic activity to see if markets look past the current challenges and continue to think the global economy will “break on through to the other side.”  Nick Note: I see this market as topping with a few fake outs along the way. I DO NOT WANT TO CHASE THE TOP!

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No vaccine passports: UK PM to set out winter COVID-19 plan

LONDON, Sept 12 (Reuters) – British Prime Minister Boris Johnson will this week set out his plans to manage the COVID-19 pandemic in the winter months, announcing a decision to scrap the introduction of vaccine passports and steps to end some emergency powers.

Johnson, under fire from some in his governing Conservative Party for raising taxes to fix a health and social care crisis, looks set to try to soothe those critics by ditching plans to introduce passports despite an increasing number of coronavirus cases.

Speaking to broadcasters, Health Minister Sajid Javid said he did not anticipate more lockdowns and that the vaccine passports would not be introduced in England, as the government depends instead on vaccines and testing to defend the public. “Now that we’re entering autumn and winter … the prime minister this week will be setting out our plans to manage COVID over the coming few months and in that we will be making it clear that our vaccine program is working,” Sajid Javid told Sky News.

He told the BBC he was not “anticipating any more lockdowns” but would not take the measure off the table, that the government would not go ahead with vaccine passports to allow people to attend mass events and he wanted to “get rid of” PCR tests for travelers as soon as possible.

Javid added the government would remain “cautious,” but “the vaccine program, our testing program, our surveillance program, the new treatments … this is all our wall of defense and whilst there’s a lot of virus around, it is working.”

Britain, which has one of the highest official COVID-19 death tolls in the world, has seen the number of cases climb over the last few months after easing restrictions in July, when the government first bet on vaccines to protect the public.

The government was handed sweeping emergency powers in March 2020 with the introduction of the Coronavirus Act, which included measures to allow the authorities to bar protests, shut down businesses and restrict travel. The main opposition Labour Party said it agreed it was a “reasonable” approach to take some measures off the statute book but that lawmakers would study the detail of the proposals. “Obviously we will want to study the detail when it comes to parliament, because there have been huge concerns about the way in which the Coronavirus Act has been misused by the authorities,” Labour’s health policy chief Jonathan Ashworth said. Nick Note: Its gotten political….. Politicians know how to steal money, fuck whores and fuck things up. We are seeing them try to convince us they are scientists. All they are doing is avoiding the hard decisions and making things worse. A great example is the FACT England now has its highest  record breaking Covid19 death rate. And the politicians are opening things up even further… Same in the US with opening up the schools . Every school hose in America is a super spreader event in the making. The SCIENTIFIC  evidence proves mask or no masks the kiddies and their teachers are getting infected and sickkkkkkkk… What the fuck are we doing?

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NICK NOTE…. I hate being misunderstood (YOU WOULD THINK I WOULD BE USE TO IT BY NOW)….. So I have put my thoughts about Fridays close in Writing

  • With sell signals in place, volume rising, and breadth weak, a retest of the 50-dma early next week will not be a surprise.
  • Deutsche Bank’s strategists ‘expect an imminent correction’ even though they see the S&P 500 rising back around current levels by year-end.
  • With supply chain disruptions looking to last longer than expected, the Fed is trapped between supporting a slowing economy and fighting inflation.

The downturn started on Monday with the week ending in 5 straight down days which is the worse slide since February. The total decline for the week was just -1.69%. Yes, that’s it, less than 2%.  Robin Hood traders who have never seen such a things were sacrificing rabbits and drinking chicken blood begging the FED to interveneNI.

With sell signals in place, volume rising, and breadth weak, a retest of the 50-dma early next week will not be a surprise. Before I jump I want to see if the buy on the dip traders show up again, as they have done every other time over the last 6 months. As shown, the market remains well confined to its rising trend with support sitting at the 50-dma. Volatility did pick up late last week as volume spiked suggesting more selling pressure on Monday. As you can see by the chart below the Bull channel remains in tact. As long as this downward move stay in this channel we will continue to wait…..

The question is will the market hold the 50-dma again, or has the risk of a more substantial correction finally caught up with investors. Although 5-10% corrections are absolutely normal in any given market year. I would like to catch this move if i can.

Over the last couple of weeks, I have seen weakening breadth, lower participation, and negative divergences. But we have also seen lower volume and considering its the end of vacation season some market softness is to be expected. The Macro Index Model combines 11-diverse indicators to determine the state of the U.S. economy. Once the final reports were in for August, the model plunged below 46%, the 2nd-lowest reading of the past decade.“

At the same time, Sentiment Trader noted their Bear Market Probability Indicator also jumped. This model has 5 inputs, namely the unemployment rate, ISM Manufacturing index, yield curve, inflation, and valuations.

“The chart below shows the spread between the Bear Market Probability and Macro Index models. The higher the spread, the higher the probability of a bear market. The chart shows that the S&P 500’s annualized return is a horrid -17.6% when the spread is above 20% like it is now.”

The point here is that while the market remains exceedingly bullish, there are signs of trouble brewing beneath the surface. Such is why we suggested raising cash levels, adding non-correlated assets, and reducing overall risk. Without any concern for corrections, individuals have increased equity risk levels relative to their overall net worth. BUT remember they have the highest saving rate ever and the millennial traders have no fear because they have not been fucked by Wall Street just yet……

We see the same overvaluations when we analyze their equity allocations as a percentage of their overall financial assets. They are all in… But not necessary One and done

The two charts above  clearly show the market is a bubble. without a doubt. BUT with unprecedented FED stimulus and realizing we came out of a shutdown induced by the pandemic you can see why newbee investors are throwing caution to the wind.. Old rules really do not necessarily apply.  At the moment investors are incredibly confident that markets can only go higher as long as the “Fed” remains accommodative. While there is undoubtedly a substantial argument as to the ability of the Fed to keep markets inflated, there are other “risks” present that could lead to a short-term correction.

Record leverage in the market, economic growth slowing, and rising inflationary pressures, numerous issues could disrupt the high levels of market complacency

The bullish argument is that such a correction will force the Fed’s hand. As Morgan Stanley aptly concluded: “Even the smallest market hiccup will prompt a furious response at the Marriner Eccles  (FED RESERVE) building, because we are now well beyond the point of no return and Jerome Powell and company simply can not afford even the smallest drop in stocks without risking a full-blown market meltdown, much to the chagrin of the banks above who are predicting just that.”

The most significant risk for the market is a change in investor psychology. As long as nothing disrupts that bullish bias, investors will continue to aggressively “buy dips.” However, that psychology is directly linked to the Fed’s ongoing balance sheet expansion. Thus, the potential problem for investors is inflation.

The Fed’s Beige Book is a summary of economic conditions in the 12 Federal Reserve Districts.

  • Boston: “Inability to get supplies and to hire workers.”
  • New York: “Businesses reporting widespread labor shortages.”
  • Philadelphia: “Labor shortages and supply chain disruptions continued apace.”
  • Cleveland: “Staff levels increased modestly amid intense labor shortages.”
  • Richmond: “Many firms faced shortages and higher costs for labor and non-labor inputs.”
  • Atlanta: “Wage pressures more widespread.”
  • Chicago: “Wages and prices increased strongly”
  • St. Louis: “Contacts continued to report labor and material shortages.”
  • Minneapolis: “Hiring demand outstripped labor response by a wide margin.”
  • Kansas City: “Wages grew at a robust pace.”
  • Dallas: “Wage and price growth remained elevated amid widespread labor and supply chain shortages.”
  • San Francisco: “Hiring activity intensified further, as did upward pressures on wages and inflation.”

Inflation is becoming a BIG problematic for the Fed.

Rising producer prices were initially good for profit margins. But we will soon be at the point where these inflation driven price increases cannot get passed along to consumers. we are at a historical spread between PPI and CPI.

With supply chain disruptions looking to last longer than expected, the Fed is trapped between supporting a slowing economy and fighting inflation. It’s a battle they will eventually lose, no matter what they choose. So yes a epic crash is coming. No doubt about it. And its could be up to a 50% correction. BUT BUT their is still enough gas left in the tank for this market to still rally.  Nick

 

 

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Producer Price inflation record 8.3% in August

 

WASHINGTON (AP) — Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010. The Labor Department reported Friday that its producer price index — which measures inflationary pressures before they reach consumers — rose 0.7% last month from July after increasing 1% in both June and July. Inflation has been stirring as the economy recovers from last year’s brief but intense coronavirus recession. Supply chain bottlenecks and a shortage of workers have pushed prices higher. Federal Reserve Chair Jerome Powell has called the price spikes temporary and has warned of the dangers of the central bank raising its benchmark interest rate (now near zero) prematurely, potentially stalling the economy’s comeback. “Since the pandemic, supply chains have never been the same and likely won’t normalize for at least six months,” said a report by Contingent Macro Advisors. “”Only then will we (and, more importantly, the Fed) get a true sense of the trend rate of producer inflation.″ Excluding volatile food and energy prices, so-called core producer prices rose 0.6% from July and 6.7% from a year earlier. Food prices were up 2.9% last month after falling in July. Over the past year, wholesale food prices have climbed 12.7%, including surges of 59.2% for beef and 43.5% for shortening and cooking oil. Energy prices rose 0.4% from July and are up 32.3% over the past year. The economy’s brisk recovery appears to have hit a late summer lull as COVID-19’s highly contagious delta variant discourages Americans from shopping in stores or going out to restaurants. Retail sales dropped in August, and employers added just 235,000 jobs last month, a third of what economists were expecting, and a sharp drop from June and July, when about 1 million jobs were added each month. Nick Note: As i have been screaming from the roof tops all year inflation is out of control.. AND kicking and screaming all the way the FED will be FORCED to significantly raise rates…. try 400 bases points…..

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A Storm is blowing in the stock market.. Epic crashes only happen every ten years.. DO NOT MISS THIS ONE!

(Bloomberg) — Strategists from almost all the top Wall Street banks have come out this week with a nervous message about the U.S. stock market. The latest views hail from Deutsche Bank AG and Goldman Sachs Group Inc., and echo earlier pronouncements from Morgan Stanley, Citigroup Inc. and Bank of America Corp.While investment banks tend to be measured in their outlooks, there are common threads that underpin their predictions that the market is vulnerable. Valuations are at historical  extremes, stocks have rallied non-stop for seven months, the economy looks soft and the Federal Reserve is preparing to taper stimulus. “The risk that the correction is hard is growing,” wrote Deutsche Bank equity strategists including Binky Chadha. “Valuation corrections don’t always require market pullbacks, but they do constrain returns.” Some of the market strain is already showing up. The S&P 500 has fallen about 1% in the past three sessions, though U.S. futures were indicated higher on Friday morning. The index has soared 100% since the March 2020 lows.

Here’s a rundown of commentary this week:

Binky Chadha, equity strategist at Deutsche Bank

“Equity valuations at the market level are historically extreme on almost any metric.” Trailing and forward price-earnings ratios, as well as valuation metrics based on enterprise value and cash flow, are all in the 90th percentiles, he said.

James Congdon, co-head of Canaccord Genuity’s research division Quest

“Global stock markets may be entering a period of turmoil.” He added that investors should favor stronger businesses with robust cash flows over weaker and more speculative companies.

Dominic Wilson, strategist in economics research at Goldman Sachs

“While the broad U.S. market outlook is solid in our central case, we think peak cyclical optimism in the U.S. may be behind us.” The strategists said hedges look attractive, especially on a shorter time horizon.

Andrew Sheets, cross-asset strategist at Morgan Stanley

“We are going to have a period where data is going to be weak in September at the time when you have a heightened risk of delta variant and school reopening.” The bank cut U.S. equities to underweight and global stocks to equal-weight on Tuesday.

Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America

“The S&P 500 has essentially turned into a 36-year, zero-coupon bond,” she said. “If you look at the duration of the market today, it’s basically longer duration than it’s ever been. This is what scares me.”

The threat is that “any move higher in the cost of capital via interest rates, credit spreads, equity risk premia, that’s basically going to be a huge knock on the market relative to the sensitivity we’ve seen in the past,” she said. Nick Note: I could not be clearer here. This is the greatest bubble market ever. In stocks, real estate and Bonds. A disaster is on the near horizon…. I have well documented what is see about to happen. GET YOUR DUCKS IN A ROW! DO not miss this opportunity bubble markets only come along every 5 to 10 years. And Epic wipeouts are a hundred year in the making….

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Exclusive-U.S. could authorize Pfizer COVID-19 shot for kids age 5-11 in October – sources

A nurse fills a syringe with Pfizer vaccine as mobile vaccination teams begin visiting every Los Angeles Unified middle and high school campus to deliver first and second doses of the coronavirus disease (COVID-19) vaccines in Los Angeles, California, U.S., August 30, 2021. REUTERS/Mike Blake  Top U.S. health officials believe that Pfizer Inc’s (PFE.N) COVID-19 vaccine could be authorized for children aged 5-11 years old by the end of October, two sources familiar with the situation said on Friday.The timeline is based on the expectation that Pfizer, which developed the shot with Germany’s BioNTech (22UAy.DE), will have enough data from clinical trials to seek emergency use authorization (EUA) for that age group from the U.S. Food and Drug Administration (FDA) towards the end of this month, the sources said. They anticipate the FDA could make a decision on whether the shot is safe and effective in younger children within three weeks of the EUA submission. Nick Note: Lets say by October 30th the Pfizer application is submitted.  EUA vaccines approved for the kiddies under 12.will be issued with a little luck by the end of November.  It will take at lest a month to roll it out that takes you to Decemember 30th.  Now allow 30days for the vaccine to become effective. And that takes you to the end of the y. That means you have gone through  the flu season. And you have the super spreader event like Halloween, Thanksgiving and Christmas with the kiddies unprotected. It does not end their… FDA still has not given full approval to the 4th booster shot. Which means by the time that get around to authorization and roll out for adults the masses will be unprotected through the holiday season. We are on the verge of another AWH SHIT!