ANDIKA BULLETin 16 AUG 2024

I'm going to start today's edition of the Bulletin by pointing out the complete insanity of VP Kamala Harris' latest idea - a crack down on sky-high food prices by proposing the first-ever federal ban on "corporate price-gouging in the food and grocery industries"—a move that reeks of socialism.

The "proposal" will ensure food companies can't exploit consumers to increase profits, according to CBS News, citing Harris-Walz campaign officials. 

VP Harris' campaign argues that lowering Americans' costs is a function of socialist-style price controls. Yet this is the quickest way to understand that Harris' economic team has no actual understanding of inflation. 

Heritage Foundation's EJ Antoni explained, "Here's your "price gouging" narrative: average costs paid by businesses have risen just as much as costs charged to consumers - if businesses are being "greedy," they're doing it all wrong..." 

Instead of curbing out-of-control government spending, which debt rises $1 trillion every 100 days, and understanding that monetary inflation driven by the Federal Reserve's money creation is the root cause of inflation, Harris deflects the actual problem: The Fed. She instead goes after big corporations for 'illegal price gouging.' 

In the previous month of July, the Biden Admin spent USD$574billion in just 1 month, running a USD$243 billion deficit.

Inflation, is not caused by "corporate greed" but by the Gov's excessive spending and borrowing. PM Albo and Grimm Jim are just as guilty here in Australia.

Kamalanomics = 'communist economics'

Voting for communism is not the solution to your precious feelings.

To the US mkts.

Retail Sales soared in August... thanks to massive historical revisions and a surge in Auto sales... but Auto production crashed by the most since COVID lockdowns (lowering GDP expectations)... and homebuilder sentiment slumped... and the Philly Fed business outlook plunged... and the Empire Fed Manufacturing survey remains in contraction for the 9th straight month... and import and export price inflation was hotter than expected... all of which sent the macro surprise index down to 2024 lows...

...but all the algos cared about was the "beat" in retail sales confirming that the 'soft landing' narrative is back (except it's not).

Nevertheless, stocks soared higher with Small Caps leading the charge along with Nasdaq as The Dow lagged (but was still up bigly). Some late day profit-taking spoiled the party but overall, it was a big day...

The Dow is on pace for its best week since Dec 2023... and Nasdaq's best week since November's Powell Pivot

the basket of Mag7 stocks is up 6 straight days in a row!

As of July 2024, the Magnificent Seven companies are worth USD$15.4 trillion combined

Bitcoin was clubbed like a baby seal again, back below $57,000 (as it seems someone is dumping crypto at $60,000 to chase what little momentum is left in stonks)...

Finally, while US stocks are soaring back higher (because 'no recession' and 'slow-flation' - goldilocks), bonds and rate-cut expectations are not playing along (flashing recessionary signals)...

Who will be right in the end? Well it won't be Kamalanomics

Have good weekend

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