Sustainable post-covid secular changes continue to underpin the U.S. dollar

The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined, according to Dodge Construction Network. There are massive chip factories going up in Phoenix: Intel is building two just outside the city; Taiwan Semiconductor Manufacturing is constructing one in it. And aluminum and steel plants that are being erected all across the south: in Bay Minette, Alabama (Novelis); in Osceola, Arkansas (US Steel); and in Brandenburg, Kentucky (Nucor). Up near Buffalo, all this new semiconductor and steel output is fueling orders for air compressors that will be cranked out at an Ingersoll Rand plant that had been shuttered for years.

American Factories Are Making Stuff Again as CEOs Take Production Out of China, Bloomberg, July 5th

Manufacturing jobs and manufacturing job openings continue to spiral higher;  50 years of offshoring is reversing
Note to reader: I wish to forward this Bloomberg article titled American Factories Are Making Stuff Again as CEOs Take Production Out of China for your reference. I have been following this growing trend amongst the C-level corporate officers of domestically-domiciled manufacturers, and view this massive sea change as another clue as to why the US dollar has been receiving continued strength.

  • As overall cost and price differentials between the U.S. and the rest of the developing world narrow, corporate executives will find it more logical to begin onshoring, which has begun reversing the 50-year trend to offshore production.
  • I see this as supporting American asset prices over the  longer term, especially single-family properties and domestic transportation companies like trucking, logistics, and railroads. Considering the size of the United States, its transportation infrastructure and shipping channels are second to none.
  • The only conclusion I can make is that the covid crisis has resulted in the United States coming out on top; even outdoing China. China will begin to get upset as these trends accelerate.
American Factories Are Making Stuff Again as CEOs Take Production Out of China
CEOs have been highlighting plans to relocate production — using the buzzwords onshoring, reshoring or nearshoring — according to a review of earnings call and conference presentations transcribed by Bloomberg. Compared to pre-pandemic periods, these references are up over 1,000%.

(Bloomberg) — There has been a sense in financial circles that the fever among American executives to shorten supply lines and bring production back home would prove short-lived. As soon as the pandemic started to fade, so too would the fad, the thinking went.

And yet, two years in, not only is the trend still alive, it appears to be rapidly accelerating.

Rattled by the most recent wave of strict Covid lockdowns in China, the long-time manufacturing hub of choice for multinationals, CEOs have been highlighting plans to relocate production — using the buzzwords onshoring, reshoring or nearshoring — at a greater clip this year than they even did in the first six months of the pandemic, according to a review of earnings call and conference presentations transcribed by Bloomberg. (Compared to pre-pandemic periods, these references are up over 1,000%.)

More importantly, there are concrete signs that many of them are acting on these plans.

The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined, according to Dodge Construction Network. There are massive chip factories going up in Phoenix: Intel is building two just outside the city; Taiwan Semiconductor Manufacturing is constructing one in it. And aluminum and steel plants that are being erected all across the south: in Bay Minette, Alabama (Novelis); in Osceola, Arkansas (US Steel); and in Brandenburg, Kentucky (Nucor). Up near Buffalo, all this new semiconductor and steel output is fueling orders for air compressors that will be cranked out at an Ingersoll Rand plant that had been shuttered for years.

Scores of smaller companies are making similar moves, according to Richard Branch, the chief economist at Dodge. Not all are examples of reshoring. Some are designed to expand capacity. But they all point to the same thing — a major re-assessment of supply chains in the wake of port bottlenecks, parts shortages and skyrocketing shipping costs that have wreaked havoc on corporate budgets in the US and across the globe.

In the past, says Chris Snyder, an industrials analyst at UBS, it was as simple as “if we need a new facility, it’s going in China.” Now, he says, “this is being thought through in a way that has never been done before.”

In January, a UBS survey of C-suite executives revealed the magnitude of this shift. More than 90% of those surveyed said they either were in the process of moving production out of China or had plans to do so. And about 80% said they were considering bringing some of it back to the US. (Mexico has also become a popular choice.)

This is, of course, a nascent trend. And so many manufacturing jobs were lost here over so many decades — about 8 million from peak to trough — that almost no one would argue that the current trend marks a return to those halcyon times. The rise of automation, which has eliminated many low-skilled, low-paid jobs, means US factories today require a much smaller group of workers.

What’s more, the soaring US dollar threatens to curtail the whole thing just as it’s beginning. As the dollar surges against the yuan, yen, pound and euro, it becomes costlier to make goods in the US rather than in those countries.

‘Better and Cheaper’

To Kevin Nolan, the CEO at GE Appliances, all this fretting about high costs in the US is overdone.

It has been for years, he says. Around 2008, he came to realize that on large items — like, say, dishwasher size and up — the savings earned by eliminating overseas shipping could outweigh the extra money spent on labor here. The key, he determined, was to wring maximum efficiency out of the factory floor to keep those labor costs down. A year later, he decided to test the thesis out and moved some of GE’s water-heater production to Louisville. Other product lines followed.

It’s all been such a success for the company — which is now, ironically, owned by China’s Haier Smart Home — that Nolan has been waiting for other CEOs to follow his move. It took a pandemic to convince them to do it.

“I’ve always said, this is just economics, people are going to realize that the savings they thought they had aren’t real,” Nolan said in an interview, “and it’s going to be better and cheaper to make them here.”

For some companies, the first nudge they got to revamp their supply-chain lines came two years before Covid, when then-President Donald Trump began slapping tariffs on Chinese products again and again.

Generac Holdings, a maker of power generators, started mapping out plans to shift some production from China, and when the pandemic hit, those plans got supercharged. The company now gets more of its parts from suppliers in the US and Mexico, produces more generators near its headquarters outside Milwaukee and runs a brand new plant in a small town just north of Augusta, Georgia.

“We wanted to be closer to our customers in the southeast,” said Chief Operations Officer Tom Pettit. Low shipping costs and quick delivery times are proving a hit with clients and paving the way for the company to keep growing, he said. Opened just a year ago, expansion work on the plant is already underway.

Russia’s invasion of Ukraine also got Pettit’s attention.

Not just because the war further snarled global trade and added to the surge in freight costs but because it reminded him that China could try something similar in Taiwan. And in the same way that business ended for most Western companies in Russia, so too it could end in China. Suddenly, that benign geopolitical backdrop that had helped encourage so many executives to globalize their operations over the past few decades was vanishing. And this, Pettit said, added to his sense of urgency to change things up.

“President Xi Jinping has not been shy about wanting to reunify China and Taiwan,” Pettit said. “We still think China is incredibly competitive. However, we need to have dual sources outside of China.”

©2022 Bloomberg L.P.

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33 thoughts on “Sustainable post-covid secular changes continue to underpin the U.S. dollar

  1. BOJ updated their balance sheet with June data. Second month out of pattern, they are tightening and currency is weakening.

    1. Thanks. I did not see that. This QE experiment will not last much longer. Should be done by the time WWIII rolls around. Like Al says, the world seems to moving towards a planned outcome.

      Amazing timing.

  2. The pieces of the puzzle are becoming more clear and I thought I would run this by you.

    This may be Putin’s pay off for being the world’s bad guy. BRICS are working towards a gold backed digital currency or at least working towards a new payment system. Sanctions on Russia is the predictable (and planned) outcome from war and will lead to this alternative to the dollar. At least for BRICS. The US may follow suit assuming this test run is successful but that could take years. For now it seems the dollar is in good shape?

    War in Ukraine is a redevelopment project but that may be secondary or a very minor part of the puzzle.

    Quoted from the link directly below:

    “The current crisis is man-made, and the BRICS countries have all necessary tools to mitigate its consequences for their economies and the global economy as a whole,” Siluanov said.”

    https://www.reuters.com/business/finance/russia-calls-integrating-brics-payment-systems-2022-04-09/

    The general public, who has been wiped out from losses in stocks or bitcoin, will fully support this while not realizing the collapse was caused by the same people who are now providing the cure!

    https://fortune.com/2022/03/09/gold-backed-cryptocurrencies-alternative-to-fluctuating-stock-and-commodities-markets/

    1. Those nursing debts and losses pose little threat to what is coming.

      Putin is only carrying out instructions. I wonder why Russia keeps bringing up the nuclear trump card. It’s like bringing a gun to a fist fight.

    2. BTW I just read the Fortune article. You are absolutely right. The premise of crypto may seem compelling, but why are more people losing out than gaining? I would rather just own the gold. BTC is right back where it was in late 2017. The Alts back where they were years ago. What BTC I own is down so much in value. There is no other investment that I would hold in which I would be willing to endure that type of loss. I was suckered. I should have just taken the money and paid down my 6.1% investor loan.

      I don’t know how the BRICs can negotiate a viable alternative now. This is proving very frustrating to Russia and China. They may be accumulating a lot of gold, but their money stock measures are growing much more quickly than that of the US. How can these nations provide the needed currency to make available if they refuse to run trade deficits?

      Frustrations around the whole central banking concept and this engineered inflation are growing daily. This cannot keep up for more than another year or two. Something will give and the next crisis will be financially geared.

      1. I had a friend who bought into BTC and LTC years ago. He was buying LTC for sure around $3 made lots of money off of it. He would say that crypto was going to be honest money and free from central banks. I asked him unless you control the internet all over the word to conduct transactions, and control the power all over the world how can you keep the Gov or Central banks from controlling crypto in some way? I think the powers to be would love everyone to be on crypto so that can track every transaction and get their cut and make sure you only buy what they approve of.

        1. Makes sense. It seems that the world has forgotten about gold as I look at its price dropping here. That a lot of those crypto holders would normally have been owning silver. It’s a divide and conquer and both are performing miserably. I can’t believe how poorly silver has been moving.

          I have to believe that the quantitative easing experiment will no longer be viable next couple years. I think that before it’s finally through, the central banks will own all of the debt. We know who owns the central banks.

          Who knows? By the time the QE experiment is through the central banks May own a big chunk of the equities and real estate mortgages as well.

          Then we go to war.

  3. I have a couple new acronyms;

    BOVOBs – Burned Out Victims Of Bidenomics.

    This economic policy also entails having to endure the ramifications of the mandatory terrorism that undermines factors of production. This includes the terrorism of the natural gas plants around the country.

    This terrorism is an aspect of Bidenomics.

    NIFWICs – Naive Flag Waving Crowd

    GULRIVs – Gullible Left-Right Voters

  4. I am curious…

    For those who rely on the Pauline Epistles to explain Christianity, please explain why we still need individual nation states. We are all brothers and sisters in Christ, so why have nations? Shouldn’t we just have one world governance; a one world multicultural kingdom that is either the work of the amillennial or postmillennial church? Or even the attempt of the premillennial church?

    Why bother with borders?

    1. This page contains 53 references which show Paul’s special apostleship from the Lord Jesus Christ to the Gentiles. His position as the dispenser of the Lord’s instructions for this age is largely ignored in mainstream Christianity.

      Acts 9:15
      But the Lord said unto him, Go thy way: for HE IS A CHOSEN VESSEL UNTO ME, TO BEAR MY NAME BEFORE THE GENTILES, AND KINGS, AND THE CHILDREN OF ISRAEL:
      Acts 20:24
      But none of these things move me, neither count I my life dear unto myself, so that I might finish my course with joy, and the ministry, WHICH I HAVE RECEIVED OF THE LORD JESUS, to testify the gospel of the grace of God.
      Acts 22:21
      And he said unto me, Depart: for I WILL SEND THEE FAR HENCE UNTO THE GENTILES.
      Romans 1:1
      PAUL, A SERVANT OF JESUS CHRIST, CALLED TO BE AN APOSTLE, SEPARATED UNTO THE GOSPEL OF GOD,
      Romans 1:5
      By whom WE HAVE RECEIVED GRACE AND APOSTLESHIP, for obedience to the faith among all nations, for his name:
      Romans 2:16
      In the day when God shall judge the secrets of men by Jesus Christ ACCORDING TO MY GOSPEL.
      Romans 11:13
      FOR I SPEAK TO YOU GENTILES, INASMUCH AS I AM THE APOSTLE OF THE GENTILES, I MAGNIFY MINE OFFICE:
      Romans 15:15-16
      Nevertheless, brethren, I have written the more boldly unto you in some sort, as putting you in mind, BECAUSE OF THE GRACE THAT IS GIVEN TO ME OF GOD, THAT I SHOULD BE THE MINISTER OF JESUS CHRIST TO THE GENTILES, ministering the gospel of God, that the offering up of the Gentiles might be acceptable, being sanctified by the Holy Ghost.
      Romans 16:25
      Now to him that is of power to stablish you ACCORDING TO MY GOSPEL, AND THE PREACHING OF JESUS CHRIST, ACCORDING TO THE REVELATION OF THE MYSTERY, WHICH WAS KEPT SECRET SINCE THE WORLD BEGAN, But now is made manifest, and by the scriptures of the prophets, according to the commandment of the everlasting God, made known to all nations for the obedience of faith:
      1 Corinthians 1:1
      PAUL, CALLED TO BE AN APOSTLE OF JESUS CHRIST THROUGH THE WILL OF GOD, AND SOSTHENES OUR BROTHER,
      1 Corinthians 1:17
      FOR CHRIST SENT ME not to baptize, but to preach the gospel: not with wisdom of words, lest the cross of Christ should be made of none effect.
      1 Corinthians 3:10
      ACCORDING TO THE GRACE OF GOD WHICH IS GIVEN UNTO ME, AS A WISE MASTERBUILDER, I HAVE LAID THE FOUNDATION, AND ANOTHER BUILDETH THEREON. But let every man take heed how he buildeth thereupon.
      1 Corinthians 4:9
      For I think that GOD HATH SET FORTH US THE APOSTLES LAST, as it were appointed to death: for we are made a spectacle unto the world, and to angels, and to men.
      1 Corinthians 4:16
      For though ye have ten thousand instructors in Christ, yet have ye not many fathers: for in Christ Jesus I have begotten you through the gospel. Wherefore I beseech you, BE YE FOLLOWERS OF ME.
      1 Corinthians 9:1-2
      AM I NOT AN APOSTLE? am I not free? have I not seen Jesus Christ our Lord? are not ye my work in the Lord? If I be not an apostle unto others, yet doubtless I am to you: for the seal of mine apostleship are ye in the Lord.
      1 Corinthians 9:17
      For if I do this thing willingly, I have a reward: but if against my will, A DISPENSATION OF THE GOSPEL IS COMMITTED UNTO ME.
      1 Corinthians 11:1
      BE YE FOLLOWERS OF ME, EVEN AS I ALSO AM OF CHRIST.
      1 Corinthians 11:23
      FOR I HAVE RECEIVED OF THE LORD that which also I delivered unto you, That the Lord Jesus the same night in which he was betrayed took bread:
      1 Corinthians 14:37
      If any man think himself to be a prophet, or spiritual, let him acknowledge that THE THINGS THAT I WRITE UNTO YOU ARE THE COMMANDMENTS OF THE LORD.
      1 Corinthians 15:3
      For I delivered unto you first of all THAT WHICH I ALSO RECEIVED, how that Christ died for our sins according to the scriptures;
      1 Corinthians 15:9
      FOR I AM THE LEAST OF THE APOSTLES, THAT AM NOT MEET TO BE CALLED AN APOSTLE, because I persecuted the church of God.
      1 Corinthians 15:51-52
      Behold, I SHEW YOU A MYSTERY; We shall not all sleep, but we shall all be changed, In a moment, in the twinkling of an eye, at the last trump: for the trumpet shall sound, and the dead shall be raised incorruptible, and we shall be changed.
      2 Corinthians 1:1
      PAUL, AN APOSTLE OF JESUS CHRIST BY THE WILL OF GOD, and Timothy our brother, unto the church of God which is at Corinth, with all the saints which are in all Achaia:
      2 Corinthians 11:5
      FOR I SUPPOSE I WAS NOT A WHIT BEHIND THE VERY CHIEFEST APOSTLES.
      2 Corinthians 12:11
      I am become a fool in glorying; ye have compelled me: for I ought to have been commended of you: FOR IN NOTHING AM I BEHIND THE VERY CHIEFEST APOSTLES, THOUGH I BE NOTHING.
      2 Corinthians 12:12
      TRULY THE SIGNS OF AN APOSTLE WERE WROUGHT AMONG YOU in all patience, in signs, and wonders, and mighty deeds.
      Galatians 1:1
      PAUL, AN APOSTLE, (NOT OF MEN, NEITHER BY MAN, BUT BY JESUS CHRIST, AND GOD THE FATHER, WHO RAISED HIM FROM THE DEAD;)
      Galatians 1:8-9
      But though we, or an angel from heaven, preach any other gospel unto you THAN THAT WHICH WE HAVE PREACHED UNTO YOU, let him be accursed. As we said before, so say I now again, If any man preach any other gospel unto you THAN THAT YE HAVE RECEIVED, let him be accursed.
      Galatians 1:11-12
      BUT I CERTIFY YOU, BRETHREN, THAT THE GOSPEL WHICH WAS PREACHED OF ME IS NOT AFTER MAN. FOR I NEITHER RECEIVED IT OF MAN, NEITHER WAS I TAUGHT IT, BUT BY THE REVELATION OF JESUS CHRIST.
      Galatians 1:15-16
      But when it pleased God, WHO SEPARATED ME FROM MY MOTHER’S WOMB, AND CALLED ME BY HIS GRACE, To reveal his Son in me, that I might preach him among the heathen; immediately I conferred not with flesh and blood:
      Galatians 2:2
      And I went up by revelation, and COMMUNICATED UNTO THEM THAT GOSPEL WHICH I PREACH AMONG THE GENTILES, but privately to them which were of reputation, lest by any means I should run, or had run, in vain.
      Galatians 2:6
      But of these who seemed to be somewhat, (whatsoever they were, it maketh no matter to me: God accepteth no man’s person:) for they who seemed to be somewhat in conference ADDED NOTHING TO ME:
      Galatians 2:7
      But contrariwise, when they saw that THE GOSPEL OF THE UNCIRCUMCISION WAS COMMITTED UNTO ME, AS THE GOSPEL OF THE CIRCUMCISION WAS UNTO PETER;
      Galatians 2:8
      (FOR HE THAT WROUGHT EFFECTUALLY IN PETER TO THE APOSTLESHIP OF THE CIRCUMCISION, THE SAME WAS MIGHTY IN ME TOWARD THE GENTILES:)
      Galatians 2:9
      And when James, Cephas, and John, who seemed to be pillars, perceived THE GRACE THAT WAS GIVEN UNTO ME, they gave to me and Barnabas the right hands of fellowship; THAT WE SHOULD GO UNTO THE HEATHEN, and they unto the circumcision.
      Ephesians 1:1
      PAUL, AN APOSTLE OF JESUS CHRIST BY THE WILL OF GOD, to the saints which are at Ephesus, and to the faithful in Christ Jesus:
      Ephesians 3:1-2
      For this cause I Paul, the prisoner of Jesus Christ for you Gentiles, If ye have heard of the dispensation of the grace of God WHICH IS GIVEN ME TO YOU-WARD:
      Ephesians 3:3
      How that BY REVELATION HE MADE KNOWN UNTO ME THE MYSTERY; (as I wrote afore in few words,
      Ephesians 3:7
      WHEREOF I WAS MADE A MINISTER, according to the gift of the grace of God given unto me by the effectual working of his power.
      Ephesians 3:8-9
      UNTO ME, WHO AM LESS THAN THE LEAST OF ALL SAINTS, IS THIS GRACE GIVEN, THAT I SHOULD PREACH AMONG THE GENTILES the unsearchable riches of Christ; And to make all men see what is the fellowship of the mystery, which from the beginning of the world hath been hid in God, who created all things by Jesus Christ:
      Colossians 1:1
      PAUL, AN APOSTLE OF JESUS CHRIST BY THE WILL OF GOD, and Timotheus our brother,
      Colossians 1:24-25
      Who now rejoice in my sufferings for you, and fill up that which is behind of the afflictions of Christ in my flesh for his body’s sake, which is the church: WHEREOF I AM MADE A MINISTER, ACCORDING TO THE DISPENSATION OF GOD WHICH IS GIVEN TO ME FOR YOU, to fulfil the word of God; Even the mystery which hath been hid from ages and from generations, but now is made manifest to his saints:
      2 Thessalonians 3:9
      Not because we have not power, but TO MAKE OURSELVES AN ENSAMPLE UNTO YOU TO FOLLOW US.
      1 Timothy 1:1
      PAUL, AN APOSTLE OF JESUS CHRIST BY THE COMMANDMENT OF GOD OUR SAVIOUR, and Lord Jesus Christ, which is our hope;
      1 Timothy 1:11
      According to the glorious gospel of the blessed God, WHICH WAS COMMITTED TO MY TRUST.
      1 Timothy 1:15
      This is a faithful saying, and worthy of all acceptation, that Christ Jesus came into the world to save sinners; OF WHOM I AM CHIEF.
      1 Timothy 1:16
      Howbeit for this cause I obtained mercy, THAT IN ME FIRST Jesus Christ might shew forth all longsuffering, FOR A PATTERN TO THEM which should hereafter believe on him to life everlasting.
      1 Timothy 2:7
      Whereunto I AM ORDAINED A PREACHER, AND AN APOSTLE, (I SPEAK THE TRUTH IN CHRIST, AND LIE NOT;) A TEACHER OF THE GENTILES in faith and verity.
      2 Timothy 1:1
      PAUL, AN APOSTLE OF JESUS CHRIST BY THE WILL OF GOD, according to the promise of life which is in Christ Jesus,
      2 Timothy 1:11
      Whereunto I AM APPOINTED A PREACHER, AND AN APOSTLE, AND A TEACHER OF THE GENTILES.
      2 Timothy 2:8
      Remember that Jesus Christ of the seed of David was raised from the dead ACCORDING TO MY GOSPEL:
      Titus 1:1
      PAUL, A SERVANT OF GOD, AND AN APOSTLE OF JESUS CHRIST, according to the faith of God’s elect, and the acknowledging of the truth which is after godliness;
      Titus 1:2-3
      In hope of eternal life, which God, that cannot lie, promised before the world began; But hath in due times manifested his word through preaching, WHICH IS COMMITTED UNTO ME according to the commandment of God our Saviour;

      1. You never answered any of my questions. I never once asked you to defend Paul’s standing, nor did I doubt it.

        Is this why we are in this mess? Is it true? Is the church so far gone that it no longer poses any threat to the NWO?

        1. This is a fact. The predominant lot of church pastors on YouTube use the Pauline epistles to justify the current world order. They don’t even know it. A few of these key pastors are actually part of the secret societies, and their influence is filled throughout the rest of the church. That’s because most of the pastors are not bright enough to do their own research and are afraid to be independent-minded.. The Pauline Epistles are the easiest to take out of context and this is why the church is barreling headlong into the New world order and it pose absolutely no resistance. They’ve been over indoctrinated, over vaccinated, over inundated, and over medicated.

          So, when we wonder why the Western Nations allow their borders to remain open with absolutely no resistance from within the church, we have the dumb Christian congregations with their dumb pastors to thank.

          And if you are one of the few that point out the obvious, well, you’re a racist, bigot, and a xenophobe.

          1. Yes it’s very difficult. Doreen Virtue used to be a new ager and now makes a valiant effort to educate others but there’s something not right with the calvinists she brings on her channel, and when you research that there’s some other dialectic imposed called Armenianism and it’s all so tedious and fishy, and it’s pretty clear Ms Virtue feels terrible guilt for her past and so is suckered by it, and they love her because of her profile. Conversely, Paul used his sanhedrin training in oratory and to navigate difficulties no doubt, but I still think you have to listen to the holy spirit when scripture or some paster doesn’t make sense personally and something feels off to you, for flashes of insight and keep reading the bible yourself. If something isn’t right you have to trust God to show you what is right and at least you can call your mistakes your own. Although I also think great armies of Mexicans and Guatemalan will fight for freedom alongside white Americans if Chinese and or Russians are on the ground and think that much is obvious and that Americans will be grateful for the MAN power which is otherwise in short supply. You mentioned recently that the Bible shows you how to live in Satan’s world… and I guess it does but not so sure. I’m agog with the pettiness and bad management at my retail job. And waste. Theres so much fat in these operations that can be translated into profit for companies which translates into share increases. This is what happened in south africa with inflation and economic stress. There, corporate operations have no more fat and employees are on the straight and narrow and it’s awful cuz they really are slaves and jobs are so scarce. Here druggies and thieves are coddled by store managers cuz theres no one else and everone is infantike in their emotional maturity, so far fro. CHRIST in knowing their worth to him and what that means in terms of all the bullshit they should sacrifice to him asap. But south africa is different and even family owned restaurants charge servers for glass breakage, tho this is the Dutch influence and im not sure Americans could ever be so mean. But operational savings profits fuelled the markets for 2 decades, and pity the US franchises who made the mistaken of going in. Pepsi and Dominos in particular saw there asses and also walmart.m, whish just hangs on and bites their time… Also irritates me that all these employees in the US identify with their stores… oblivious of the fact that they’re working for Blackrock. Theres no dream to have an autoparts store, only to manage autozone. But south africans can source pirate parts lol… and while theyre not great, its a few hundred difference on a vehicle maybe not going for that much longer anyhow and in a few years will be hugely welcome and autozone can stuff off. This brings up another point, how the Muslims all run these shiny tobacco vape stores and 7/11s … but that’s not their culture and it’s so contrived. Real Muslims are great for an economy because they create an informal sector that is very competitive and untracksble and untaxable. Anyhow, inefficiencies abound here, and thats the fat for the peope and under high inflationary conditions, ive witnessed accenture big 4 type of change management will swoop and wring things out till everyone is eating dry bread … and the markets go nuts for it and it all disappears into the black hole till one day you look around and everyone is eating bugs I guess

            1. I’m really getting under my own skin now … and I am feeling so irritated at this condescending term mom and pop stores for what is really independent American business yet framed as something archaic and bumpkiny to be laughed at and dismissed, pitied and smiled at virtuously just like a liberal fawns over a bouncing African baby thats much healthier than their own. Babylon is coming down at some point and hard, as the bible says. So Satan makes it into a neverending crisis, but those who confuse their nation with Babylon are tickets because thats the SOS speciality. Corporations not vcing the babies will be punished. And if Tyre, Venice, Portugal, Spain, Holland, England and the US of A haven’t taught people anything about how it all works then I can be sure the chaff is blowing in the dust

            2. The whole legal system which underpins the New World Order was built on the satanic sciences and its subtle and disingenuous reframing of words and terms to unduly influence people. That is what we see today and you see the subtle changes in the everyday vernacular. Now we know why Jesus hated the lawyers so much.

              You see it and that’s why you get irritated. It’s the same thing with regards to property Management. Instead of calling them small investors, the propagandists for the New World Order call them Mom and Pop landlords, which infers an archaic way of doing business. You get the picture.

      2. Jesus – If you love me Keep my commandments.

        Deut 13:3
        You must not listen to the words of that prophet or dreamer. The Lord your God is testing you to find out whether you love him with all your heart and with all your soul. 4 It is the Lord your God you must follow, and him you must revere. Keep his commands and obey him; serve him and hold fast to him.

        The problem with Paul is that he says the right things most of the time. But 1-5% of the time he does not; and if those verses are combined together and taught out of context; they can lead to an entirely different Gospel than the Gospel of the Kingdom that Jesus Christ preached. Unfortunately most verses quoted from Paul these days are from the 1-5%.

        The reason some think the Old Testament is dead is from the church’s push of Paul. If his verses are taken out of context than salvation is as simple as proclaiming with your mouth that Jesus is my Lord and Savior. Therefore what good is the Old Testament? Some are than indoctrinated to believe that your works are filthy. There is none righteous under the law (Job, Daniel, and Noah were examples of righteousness). The law is dead. The Old Testament is dead. I’m saved because Jesus took all of my sins away forever and ever; with nothing I have to do in return but confess with thy mouth.

        It’s not what Jesus said. It’s not what the Father said. We are to keep the commandments out of our love and faith in Jesus and the Father. And if you do that then works also come naturally.

        John 3:36 ESV
        Whoever believes in the Son has eternal life; whoever does not obey the Son shall not see life, but the wrath of God remains on him.

  5. Mainstream press is now running placement articles to defer the reader’s attention away from what is causing the sharp rise in blood clots. Of course, it’s the COVID jabs, but not according to Express Online. It’s caffeine. Ha, now the vaxxed dummies will start to decrease their caffeine intake. Watch out SBUX investors.

    Blood clots: The nation’s favourite drink could make your blood sticky – increasing risk

    https://www.express.co.uk/life-style/health/1636636/blood-clots-deep-vein-thrombosis-symptoms-signs-sticky-blood-risk-factors-diet-tea-1636636

    Speaking exclusively to Express.co.uk, Professor Mark Whiteley – a leading consultant venous surgeon – cautioned that caffeine could lead to “sticky blood”, thereby increasing your risk of a blood clot. “Dehydration affects the constituents of the blood, making blood thicker and more ‘sticky’,” Professor Whiteley pointed out. “Blood flows at a slower rate in veins than in arteries. Therefore, being dehydrated can increase the chances of developing a blood clot in the veins.”

  6. Fed Braces as Another Big US Inflation Number Looms: Eco Week

    https://www.bloomberg.com/news/articles/2022-07-09/fed-braces-as-another-big-us-inflation-number-looms-eco-week

    US inflation data in the coming week may stiffen the resolve of Federal Reserve policy makers to proceed with another big boost in interest rates later this month.

    The closely watched consumer price index probably rose nearly 9% in June from a year earlier, a fresh four-decade high, based on the median projection of economists in a Bloomberg survey. Compared with May, the CPI is seen rising 1.1%, marking the third month in four with an increase of at least 1%.

  7. We know why real Communists support such wild idea, for the goal is to destabilize, but I cannot fathom how anyone else could support their ideas.

    —————–

    Colombia’s President-elect Gustavo Petro promises a trifecta of trouble for US

    https://nypost.com/2022/07/08/colombias-president-elect-gustavo-petro-means-trifecta-of-trouble-for-us/

    For starters, Petro has vowed to drastically curtail Colombia’s thriving fossil-fuels sector (oil, natural gas and coal account for some 80% of its exports) and force a transition to wind and hydro power. This would make Colombia the first energy-producing nation to voluntarily renounce its own energy resources and end the relative prosperity this sector has fueled.

    1. The modus operandi of communists is to destroy the current social order then rebuild it so the masses have nothing and the communists leaders have everything and are in complete control. They use empty promises to get the masses to go along. If the Columbians voted for Gustavo Petro on these empty promises, then it is another case of people voting for their own destruction.

      Satan does the same exact operation that the communists use. This is why the Bible says in multiple passages NOT to worship human leaders but to only worship God. Humans have faults.

      1. I get asked about the difference between the liberation theology of the church and Marxist governments in South America with biblical Christianity. The form in SA is used by the Communists to affirm Marxist policy. Many don’t see a big difference.

  8. Another Biden bid to curb oil supplies that’s sure to raise gas prices even more

    https://nypost.com/2022/07/08/biden-bid-to-curb-oil-supplies-is-sure-to-raise-gas-prices/

    Team Biden is now aiming to block new drilling in the Atlantic, Pacific and possibly much of the Gulf of Mexico. No doubt he’ll blame Vladimir Putin, gas companies and Republicans when gas spikes yet again as a result.

    What a nightmare. Last week, the Interior Department announced (on the Friday before July 4, as folks prepped for the holiday weekend) that it wants to include a ban on that new drilling in its five-year plan, though it might allow an expansion in the Gulf of Mexico and Alaska’s south coast.

    The plan is still being worked out, but one version allows just 11 oil-lease sales over the course of five years, while another would abandon new lease sales entirely. That’s not encouraging.

    Meanwhile, President Joe Biden claims he’s doing everything he can to increase supplies and lower prices. And blames US companies for not pumping more.

  9. Arizona posts largest manufacturing jobs gain since 1966

    https://azbigmedia.com/business/arizona-posts-largest-manufacturing-jobs-gain-since-1966/

    Arizona’s unemployment rate hit (another) new low at 3.2% in April. The state’s seasonally-adjusted nonfarm payroll jobs increased by 16,100 in April, after a revised drop of 4,400 in April. The preliminary estimate for March showed a decline of 3,700 jobs. Over-the-month job gains were driven by Arizona manufacturing jobs, which added a whopping 4,900 jobs over the month.

    That was followed by leisure and hospitality (up 4,600), education and health services (up 2,300), professional and business services (up 1,500), trade, transportation and utilities (up 1,200), information (up 1,000), other services (up 700), and government (up 500). Employment in natural resources and mining and financial activities was stable, while construction jobs dropped by 600.

    The seasonally-adjusted manufacturing job gain in April was the largest on record (going back to 1966). Gains were about evenly split between durables (up 2,200) and nondurables (up 2,700). Durable job gains were concentrated in other durables (up 1,100), with additional gains in aerospace (up 500), computer and electronic products (up 400), and fabricated metals (up 300).

  10. What a blowout employment report!

    Manufacturing jobs up 29k vs. 15k expected. Prior was 18k. For decades the number was negative.

    Landlords should be happy, too. Time to raise rents.

    The USDX loves the report, or if you hate the dollar, you’ll hate the employment report. I just observe facts here. Yields spike and so does the dollar. New highs on the USD.

  11. Quite the recovery today, didn’t expect that big of a pop. Was all doom and gloom for awhile, especially last week. But hey all of a sudden it’s all better now! Lots of money on the sidelines afterall. I wonder if the advertised economic reality even matters and if it is even accurate?

    Labor cost, taxes were always the advertised reason for the move to other Countries, yet maybe the main reason was to capture market share in the Global arena.

    Corporations from liberal stronghold States recently are setting up shop in the South like Texas where wages, benefits are not much lower. However the moving and construction expenses would be very expensive, and the tax incentives to open new facilties in another State would not offset the savings to just stay put and apply for grants and incentives. Many Chinese, Africans, Mexicans are moving to the USA so one would think it’s only a matter of time before those southern areas become a liberal stronghold as well.

    Fed policymakers plan to raise interest rates by either 50 or 75 basis points at the upcoming meeting this month.

    1. I like the short term trade. Was looking bullish overnight and like the way the days end closer to unchanged. Lots of bearish talk about a so-called recession. That’s just a red herring. Dollar continues to look strong. I wonder how high it could eventually go?

      BTC bearish talk was too long and too much. Looks good here for now.

    2. Greg
      You may be right about the Red states going blue. The Red states are growing in population as people from blue states move to the red states and new immigrants from China,Central America, etc also settle there. Many of the people moving to the red states from the blue states are liberals who don’t understand that the way they vote caused the problems in the blue states that they left so they vote for the same candidates that will cause the same problems where they left. Most people don’t understand the consequences of their actions. Non English speaking foreigners also tend to vote for socialist candidates. I see most of the USA going blue in the future.

      It is time for us who do understand to put our faith in Jesus Christ and the heavenly kingdom.
      Jesus Christ is our real home and heart as we see the world falling apart.

  12. I think US companies are moving production back to the US because the US CEOs up top see WWIII with China and Russia which will disrupt international shipping and supply chains. Much more reliable to have the production sources close to home.

    It is also very interesting that the manufacturing is being located in Red states where the taxes and labor regulations are much more lenient. The hell with states run by liberal politicians.

    1. That’s right. Only a foolish CEO would continue to source exclusively to China. These corporate officers see exactly what we see. They see what Russia is doing. The hear what CCP says about their military ambitions. It’s just adding two and two together.

  13. BLS JOLTS survey from 7/6

    Table 1. Job openings levels and rates by industry and region, seasonally adjusted

    https://www.bls.gov/news.release/jolts.t01.htm

    May preliminary data points (will be revised)

    809k manufacturing job openings
    6.0 rate

    Both down from April’s, but still elevated. The trend looks intact from this morning’s data release.

  14. Kudos on the excellent article with sources. This I outshines some of your previous opinion pieces that are bereft of sourcing.
    Talking about the type of non-sourced speculation that I’m criticizing you for, do you think it likely that these companies would continue to inshore if they thought that the fake President would be allowed to continue to destroy America?
    Isn’t your thesis a good argument that after the self-destruction reaches a crescendo, that either the military or Trump, or both Re-emerge to start a new American renaissance?

    1. I do my own research. I have always sourced anecdotal observations, so my findings are difficult to comprehend as there is rarely any easy confirmation. The raw data that is freely available in FRED backs it up. It only takes a change of perspective. The stories and conference calls were stacking up in favor of the manufacturing jobs data.

      I do not make any claims as to martial law, etc. In fact, I doubt any that will happen anytime soon. Not until the planned WWIII.

      I think Trump is dead in the polls. If DeSantis emerges, he wins hands down and DeSantis seems to be groomed for that possibility.

      As for Biden, these secular trends cannot be stopped regardless of who’s president. These changes are too imperative to be denied or ignored. There’s a need for the acceleration in this regard. If I were a corporate logistics officer, this is what I would be actively planning right now. I would be concerned with any Chinese offshore capacity and worry about being to dependent on it.

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