READING THE TEA LEAVES 7A

LIFE IS A GAME OF CONNECT THE DOTS, IF YOU DON'T CONNECT ALL THE DOTS OR DON'T CONNECT THEM IN THE RIGHT ORDER YOU NEVER GET THE PICTURE READING THE TEA LEAVES 7A We can go back to talking about the human mind and thinking from 6A at a later time. A new government is about to take over on the 20th of January. Good thing that our worst fears didn't come into play. All the talk about the lefty mobs burning down the towns didn't come to fruition, certainly thankful for that. So far, as watch the possible cabinet take shape, the out look is not so rosy, but you really have to understand how the economy works. Stock market seems to be doing great, but interest rate dependent stocks not so much. Bonds are not doing well either. Companies that cater to the low income customers are tanking too, consumer goods and low end fast food companies are down. Gold is dropping like a rock, predicting higher interest rates. If government actually decides to cut spending, the first impact will be felt by low income citizens ( including those on Social Security). What does it all mean for the economy, since we care so much about it. Since our future depends on the "economy" we think anyway. It is not that simple at all. The future direction of prices, of food, housing, fuel jobs (employment), wages, healthcare, government services, defense and more all make up the "economy" and all are interconnected, not separated one from the others. If defense spending is cut, the first thing you will notice is the stagnation of contractor wages and employment cuts, that will lower the housing prices near contractor factory sites, and bases, lower employment in food service and grocery stores and so on. If the crop subsidies are reduced the prices of crops will go up to make up the difference, add that to the losses due to drought and farm labor shortage and you begin to understand why I said that food prices will double in the next two years, ( or maybe just 50% so as not to scare you). If we cut social security and Medicare the elderly will be hurt , as well as those that take care of them, nurse's aids, nursing homes, hospices and so on. As the markets have shown already, interest rates are not coming down or atleast as fast as we hoped for, and wishful thinking is not a strategy. I WILL WRITE MORE SOON M. N. R. 16 NOVEMBER 2024