S3 E9: Debunking the Macro-Economic Myth that the U.S. Consumer & Labor Market are Strong

The current macro-economic “narrative” is as follows:

1.      The Consumer remains "strong", with a "healthy" Balance Sheet

2.      The Labor Market remains "solid." 

In today's podcast I use FACTS, data and simple mathematics to COMPLETELY blow up that narrative and debunk the greatest macro-economic myth out there right now, that the Consumer remains in a "strong" position, with a "healthy" balance sheet, and that the Labor market remains "solid". 

The macro-economic data is SOLID, in suggesting the complete OPPOSITE is true, that the Consumer is CHOKING, their Balance Sheet imploding, and a Consumer Cocoon and Credit Crunch is now well underway, more so as the Labor market gets a whiff of outright DEFLATION in the June Employment Situation Report for June. Throw in the New York Federal Reserve Bank's June Consumer Survey, revealing that Consumers fully expect that "real" (inflation-adjusted) Wage-Earnings-Income will DEFLATE by anywhere from (-) 0.7% to as much as (-) 2.1%, depending on Income Level, with those Earning $50,000 per year or less getting CRUSHED!!! 

As for the Labor market, if not for a +329,000 increase in the Number of People NOT in the Labor Force (AKA dropouts) the Unemployment Rate would have RISEN, as 8 of 19 industries tracked by the BLS posted OUTRIGHT JOB LOSSES, the most in four years ... while Average Weekly Earnings DEFLATED in June, as 14 of 19 industries reported LESS Hours Worked, with the Aggregate Hours Index, used by economists as a proxy for GDP, posted a (-) 3.6% annualized contraction!!!

And, Revolving Credit has been DEFLATING on a monthly, and year-year basis, something seen only two other times in US History, in 2008-09 global financial crisis, and the 2020 global health crisis ... thanks in part to a RARE DECLINE in PCE Personal Income, which fell (-) $125 billion in June, leading to an across-the-board decline in Spending!!!

Strong??? Yeah, NOT

Healthy??? Yeah, NOT 

Weak??? Hell Yes!!!

ILL??? Hell Yes!!! 

So, what to do, investment wise??
I answer that by asking YOU, Got Metals??  Got Crypto??

If not, get some NOW!!! 

Chapters

• 0:00 Consumer Strength Myth Debunked
• 7:14 Labor Market Weakness & Inflation
• 13:21 Consumer Credit Contraction Reality
• 18:15 Fed Policy & Powell's Paradigm
• 25:51 Dollar Decline & Precious Metals Surge
• 31:57 Metal Investment Recommendations & Outlook