Bidenomics 101 (Immigration): Native Born Labor Force UP 3.6%, Foreign Born Labor Force UP 14.6% Under Biden (>1 Millon Foreign Born Jobs Added While 1+ Million Native Born Jobs Lost In August)

Face it. No one in Washington DC wants to close the border. Republicans supporting big agriculture support open borders and cheap labor, Democrats love open borders for political gains, despite open borders meaning a flood of migrants and depressing job prospects for native born Americans.

Case in point. Under the leadership of Biden (more like a followship because Biden clearly isn’t in charge of anything), the native born labor force (blue line) grew by 3.6%. However, the foreign born labor force (red line) grew by 14.6%.

The media focused on 1 million jobs lost for native-born and a gain of 697k jobs for foreign-born. But this claim is misleading. Look at the month to month changes in the labor force since 2020 (pink box). In several past months, we witnessed the same thing … native born job losses when foreign born gained jobs. But several months had the exact opposite. It is the overall trend that is alarming: native born jobs only grew 3.6% under Vacation Joe Biden while foreign born jobs grew 14.6%.

If we look at Employed full time: Earnings of foreign born as percent of native born: Median usual weekly nominal earnings (second quartile): Wage and salary workers: 16 years and over, we see that the YoY growth rate of earnings for foreign born declining. I attribute this to open borders and the influx of unskilled, largely uneducated immigrants pouring over the southern border.

Biden’s biographer claims that Biden is worried that he will be remembered as “Stupid.” Well, Biden IS stupid. But he is also the most corrupt President in history.

Simple Joe is what he will be remembered as.

Bidenomics 101 (Mortgage Rates) Conforming 30Y Rate UP 155% Under Biden, Home Prices UP 32% (Fed Balance Sheet Still Exceeds $8 Trillion, UP 10% Under Vacation Joe)

Under Bidenomics, there is still too much Fed monetary stimulus in the form of >$8 trillion on its balance sheet. While the biggest surge in Fed activity occurred with Covid, The Fed has added 10% to its balance sheet under Billions Biden.

Despite not backing off the assets purchases by The Fed, conforming 30Y mortgage rate is still up 155% under Bidenomics.

Yes, The Fed is raising its target rate to cool inflation, but doing little with its balance sheet.

The Case-Shiller national home price index is up 32% under Vacation Joe!

It seems prices are out of control and The Fed refuses to trim its balance sheet. But don’t worry, Vacation Joe is probably on yet another vacation while Maui and Flordia suffer and The Ukraine war is seeing bodies pile up. Meanwhile, he still hasn’t visited East Palestine Ohio like promised.

“Soviet Joe” Biden Bails Out US Auto Industry With Up To $12 Billion In Loans/Grants As Green Energy Mandates Crush Auto Industry (Shades Of Banking Crisis, Another Federally Created Monster!)

Soviet Joe Biden, who is a believer in Soviet-style command economies where rather than rely on free market capitalism, we now have CC (Crony Communism) running the US economy. Into the ground. But in the tradition of bad Federal policiies, Soviet Joe and Energy Secretary Granholm (with help from Congress) mandate green energy transition at all costs, watch the auto industry suffer, then bail them out. Sounds a lot of like the banking crisis of 2008 where The Federal government pushed homeownership until it helped almost collapse the banking sector, then the Federal government bailed out the banks. Rinse, repeat, bailout. And the bailout of banks in going! (Notice that The Fed has barely shrunk its $8+ trillion balance sheet!).

Automakers are looking to finish the week with strength after it was announced on Thursday that the Biden administration would be making “up to $12 billion” available to retrofit facilities to make both EVs and hybrids.

The money will include $10 billion from a US Energy Department loan program for clean vehicles and an additional $3.5 billion in financing to expand domestic battery manufacturing, according to Bloomberg.

The United Auto Workers, currently in negotiations with Detroit, has argued that a shift to EVs will cost the industry union jobs. US Energy Secretary Jennifer Granholm said on Thursday that the funding would help Detroit retain workers.

However, we’ve seen this “bailout” business model to save jobs before – at banks and during Covid, to name two examples – and it always winds up turning into a company cash grab before ultimately firing workers regardless. The UAW will try to prevent such a situation from taking place as it negotiates.

UAW President Shawn Fain “cautiously” welcomed the news after warning earlier this month that the White House should not push an EV agenda if it means the loss of jobs in Detroit.

Almost like the government should stay out of the auto industry as a whole, right? But that would make too much sense.

“The EV transition must be a just transition that ensures auto workers have a place in the new economy,” Fain said this week. Meanwhile, the Alliance for Automotive Innovation, a Washington lobby group that represents most Detroit automakers, said this week the funding “will further advance the domestic automotive supply chain and globally competitive battery manufacturing platform that automakers have already made sizable investments.”

Instead, Bloomberg calls the move the Biden administration “doubling down on efforts to support carmakers’ transition to EVs”. In a statement this week, President Biden said: “This funding will help existing workers keep their jobs and have the first shot to fill new good jobs as the car industry transforms for future generations.”

The Biden administration continues to aim for half of all vehicles on the road being EVs by 2030.

Oh and now that UAW Boss seeks 46% raise and 32-hour work week. Reminds me of Federal student loans where students run up massive amounts of debt to major in useless degrees like political “science” and gender/race studies, yet universities hire more admininstrators.

Bidenomics 101 (Income): Real Gross Domestic Income Growth NEGATIVE For 3 Consecutive Quarters As M2 Money Growth Worst Since 1933 And The New Deal (Only 187k Jobs Added In August And ALL Of Last Year’s Jobs Added Were Revised Downwards)

The glories of Bidenomics is on fully display. Despite what Lyin’ Biden says, Bidenomics is only working for the elites (top 1%). How Soviet/CCP command economy of him!

Here is an ugly chart showing Bidenomics in action! We all know that Covid unleashed a torrent of Fed monetary stimulus AND Federal spending on Covid relief and green energy subsidies (most to large Democrats donors). BUT we now have experienced 3 consectutive quarters of negative gross domestic income (GDI) growth. And nominal GDI growth is falling with falling M2 Money growth.

And today’s jobs report for August showed that only 187k jobs were added.

Superficially this would have meant an unchanged print from last month when the BLS also reported 187K jobs, however in keeping with recent trends that number was revised – drumroll – lower again, to 157K, meaning that every single monthly payrolls print in 20-23 has been revised lower (see chart below), a 12-sigma probability and virtually impossible unless there was political pressure to massage the data higher initially and then revise it lower when nobody is looking. (As if the mainstream media is at all honest!)

But wait there’s more: while July was revised down by 30K from +187,000 to +157,000, June was revised even more, by 80,000, from +185,000 to +105,000, which means that a number that was originally reported as 209K has been reivsed 50% lower, to 105K and a collapse vs original expectations of 230K. Here, the BLS was proud to report that “with these revisions, employment in June and July combined is 110,000 lower than previously reported.”

And we have The Conference Board’s confidence index at -65. Yikes!

Finally, we have the 10Y-3M UST spread SCREAMING recession!

So, the economy is slowing under Bidenomics and Cadavar Joe.

Will Cadavar Joe actually go out on the campaign trail and debate ANY Democrat or Republican?? Remember, this is the man with the nuclear launch codes.

Fed’s Favorite Inflation Indicator Jumps Higher In July (4.2% YoY), Wage Growth Slowed

One of The Fed’s favorite inflation indicators – Core PCE Deflator – rose 4.2% YoY in July (as expected but higher than June’s +4.1%). Headline PCE jumped up to +3.3% YoY (also as expected) – the biggest jump in YoY prints since June 2022…

Source: Bloomberg

Even more focused, is the Fed’s view on Services inflation ex-Shelter, and the PCE-equivalent shows that is very much stuck at high levels…

Source: Bloomberg

Services inflation accelerated in July but Goods saw the biggest MoM deflation since 2022…

Source: Bloomberg

Personal Income growth slowed for the 2nd month in a row as Spending accelerated for the 2nd month in a row…

Source: Bloomberg

On a year-over-year basis, spending accelerated as income growth decelerated…

Source: Bloomberg

Wage growth slowed:

Private workers wages and salaries 4.6%, down from 5.9%
Govt workers wages and salaries 6.0%, down from 6.1%

Adjusted for inflation, ‘real’ personal spending was higher in July (up 3.0% YoY)…

Source: Bloomberg

But real disposable income fell 0.2% MoM – its biggest decline since June 2022…

Putting all that together, we see that the savings rate plunged to 3.5% – the lowest since Oct 2022 – down from 4.3% – the biggest drop since Jan 2022….

It appears the American consumer is completely tapped out – consumer credit has flatlined (maxx’d out) and now savings are plunging again.

Another Bidenomics Report Bites The Dust! Challenger Jobs Cuts Increase By 267% YoY (Biden Bowl?)

Another (economic report) bites the dust!

U.S.-based employers announced 75,151 cuts in August, a 217% increase from the 23,697 cuts announced one month prior. It is 267% higher than the 20,485 cuts announced in the same month in 2022,

As M2 Money growth collapses to Great Depression levels. Instead of The Dust Bowl, we can call this The Biden Bowl.

This great meme can be replaced by “Our President is as cold as your ex’s heart.”

Bidenomics Gets Jolted! US Job Openings Fall To 8.82 Million In July (Down -22.4%) As M2 Money Growth Collapses

Bidenomics just got jolted! US job openings in July collapsed by -22.4% to 8.82 million job openings. As M2 Money growth remains negative.

You can see the same collapse in growth of job openings in this chart.

Apparently, Powell and The Gang at The Federal Reserve have to keep on printing!

Here is alleged Civil Righter advocate Joe Biden saying the N- word in Congress. I can’t believe this stupid, demente fool is our President.

Bizarro World! Case-Shiller National Home Price Index Flat For June, But SF Falls -9.7% YoY And Seattle Falls -8.8% While Chicago And Cleveland Lead The Nation!

The US housing market is truly bizarro world! San Francisco and Seattle are down near 10% year-over-year (YoY) while Chicago and Cleveland lead in price gains.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported 0.0% annual change in June, up from a loss of -0.4% in the previous month. The 10-City Composite showed a decrease of -0.5%, which is an improvement on the -1.1% decrease in theprevious month. The 20-City Composite posted a year-over-year loss of -1.2%, up from -1.7% in the previous month.

Notice that The Fed’s balance sheet is slowly unwinding (green line) and real weeky “usual” earnings are finally positive after two long years of decline (red line). No growth or loss in home prices at the national level.

How about at the metro level? Chicago, Cleveland, and New York again led the way reporting the highest year-over-year gains among the 20 cities in June. Chicago remained in the top spot with a 4.2% year-over-year price increase, with Cleveland in at number two with a 4.1% increase, and New York held down the third spot with a 3.4% increase. There again was an even split of 10 cities reporting lower prices and those reporting higher prices in the year ending June 2023 versus the year ending May 2023; 13 cities showed price acceleration relative to the previous month.

But The West is where home prices fell and fell hard. The biggest losers were San Francisco (-9.7% YoY) and Seattle (-8.8% YoY). Bubble cities of Phoenix (-7..5% YoY) and Las Vegas (-8.2% YoY) round out the four biggest losers in the nation.

The really interesting chart show the surge in home prices following The Great Recession of 2008 and ensuing financial crisis and post Covid. Of course, the commonality in the surge is the massive expansion of money supply thanks to a hyperactive Federal Reserve.

The puppetmaster of bizarro world? The Federal Reserve!

Livin’ La Vida Bidenomics! US Conforming Mortgage Rate Up 161% Under Biden, Home Prices UP 26%, Real Median Weekly Earnings DOWN -5%

We are livin’ la vida Bidenomics!

The 30-year conforming mortgage rate is currently 7.23%, up 161% under Biden and Bidenomics (code for massive Federal spending on green initiatives that go to large Democrat donors and Ukrainian oligarchs). Meanwhile, M2 Money supply is up 9.4% under Biden.

At the same time. home prices are UP 26% under Biden while Real Median Weekly Earnings are DOWN -5%.

On a sad note, it looks like The Federal government is starting to rattle its Covid saber just in time for the 2024 Presidential election. Odds are the US will ramp up online voting, early voting, etc. Think of John Fetterman (aka, Walter White’s twin brother) and the Pennsylvania voting experience.

Team Biden!

Simply Unaffordable! Home Affordability Worst Since 1984 (Home Prices UP 26% Under Biden While REAL Median Weekly Earnings DOWN -5%)

As Robert Palmer nearly sang, US housing is simply unaffordable.

If we look at the Case-Shiller National home price index against real weekly wage growth, you can see the problem clearly. Since Covid and The Fed’s overreaction by providing staggering monetary stimulus, home prices shot up while real median weekly earnings collapsed.

Buying a house requires a much bigger slice of people’s income now — making this the most unaffordable housing market since 1984, by one measure.

And that crushing lack of affordability isn’t expected to improve much in the near future.

In just the last few weeks, US home prices rose for the first time in months and the 30-year fixed mortgage rate hit a 22-year high of 7.23%.

That has made what was already a dismal affordability picture even worse.

At today’s rates, buying a median-priced home would require a monthly principal and interest payment of $2,440 for those making a 20% down payment, according to Black Knight, a mortgage technology and data provider.

The rising cost of shelter represented 90% of last month’s inflation.

That’s $1,172 a month more in mortgage payments from just two years ago, before the Federal Reserve raised its benchmark lending rate 11 times in 18 months, Black Knight found. It’s a 92% increase — and is taking a growing chunk out of household budgets already facing inflation on many fronts.

Currently, 38.6% of the median household income is required to make the monthly payment on the average home purchase, making housing the least affordable it’s been since 1984, according to Black Knight.

“To put today’s affordability levels in perspective, it would take some combination of up to a 28% decline in home prices, a more than 4% reduction in 30-year mortgage rates, or up to a 60% growth in median household incomes to bring home affordability back to its 25-year average,” said Andy Walden, vice president of enterprise research and strategy at Black Knight.

Must as well face it, we’re addicted to gov. Or at least Fed monetary stimulus.

Just look at Personal Interest payments under Bidenomics.