By Astrology Traders
The following is an excerpt from this weekend’s Astrology Traders update.
McDonald’s ‘McPick 2’ Deal Will Now Cost You $5 Instead of $2
Inflation is rearing it’s head at McDonald’s. I warned about this in the January 10th Astrology Traders update. January 6th was an important date, illustrated in the astrology, as critical for the dollar- suggesting a weak dollar and inflation. On the same date a story popped up in the news, McDonald’s officially eliminated the popular $1 menu, replacing it with a McPick $2 menu. Well, that didn’t last long. Now the menu will cost $5-This is HYPERINFLATION!
Below is an excerpt from the January 10th Astrology Traders:
The media narrative for a strong dollar continues unabated, while oil, the commodity backing the dollar, is falling through the floor of price support. According to Jeff, oil is potentially headed to $20 dollars a barrel near its 2002 lows. It does seem a coincidence for oil prices to plunge through long time support levels at $35 dollars a barrel on January 6th , the date I have highlighted as critical for THE DOLLAR!
A symbolic coincidence?, McDonald’s chain restaurants officially eliminated their popular dollar menu on January 4th! So, they just eliminated the dollar and replaced it with the $2 bill- a “McPick 2” menu, which allows customers to pick items for $2: a McDouble, a McChicken, small fries and mozzarella sticks. This is pure comedy, McDonald’s is proving wrong the theory of Keynesian monetary policies.
Pumping money into the system is creating long term problems- it’s called INFLATION.
Inflation does not occur because of a “wage-price spiral”, an overheated economy, excessive economic growth, or through any other natural mechanism of the market. A government debasing the currency would not have fooled anyone a century ago – Milton Friedman
In today’s economy, inflation is always the result of increases in the supply of credit money. Corporations who have aligned themselves with the the Federal Reserve’s monetary policy, are now at risk for huge losses. Corporate bonds are in the same risk category as the Treasury bonds – they are all hitting a brick wall! A complete bond wreck is in the works.
Deflation usually occurs from one of two causes. Either the economy grows and the volume of transactions “T” increases, or the quantity of money “M” decreases. After the Civil War, when the United States issued hundreds of millions of dollars in paper money “greenbacks” to spend on the war, greenbacks and gold dollars circulated side by side: but gold dollars were worth several greenback dollars.
Anything can be money: stones, gold, silver, paper, tobacco, shells, etc. What makes these things money is not what they are but what they are used for. They may have value in what they are, like gold and silver (commodities), or they may not, “credit” money, which means banknotes and paper money-deposits, markers etc. What gives money value is the human element in the economy of supply and demand. What people can earn, create, and demand for their talent and what people are willing to pay for it. This is important to remember * the human element in supply and demand*. PEOPLE ARE GOLD
Our economy has been stagnant with little to no wage growth for the last decade. The Fed has increased the money supply “M” while money velocity “V” and transactions “T” have remained constant. This is the equation for Inflation and how the aggregate level of prices “P” go up. MV = PT
The Federal Reserve has manipulated the data to exclude food and energy in the CPI. Their control mechanism has broken, the CPI numbers exceeded the Fed’s 2% target last month despite the manipulation. Going forward, the government will attempt to blame inflation on anything but their own irresponsible actions.
March 23rd-25th: Marks an escalation in bond volatility and liquidations.
April 23rd-May 21st: Very important time frame for large corporations such as the Dow Jones stocks. Investors are worried about corporate bonds and profits. Safe haven investments are becoming fewer and fewer.
In my view, one of the best places to park your money is in your community. Real estate, vacation rentals, duplexes and small businesses that cater to the middle class. These are affordable investments that will hold their value and produce income above what the markets can deliver. In terms of elections, the outcome of your local and state elections will have a much greater impact on your life than will the presidential elections. Pay more attention to your local government and follow the proposed legislation. Property rights are always front and center with the legislators. They can sign a crazy bill that makes renting a home illegal.
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