Greetings from Chicago. I have been addressing a few heres and theres, and having lunch with old clients. I overpacked and underprepared. People are walking around in tee shirts. I have four layers on. Turns out that going from 80 degrees to 50 degrees is more jarring than you think. I’m watching this market and this positive jobs report.
OH BOY – More than 500,000 jobs created last month. Did you miss the more important number? 100 million? That’s how many people over 16 aren’t working right now. We’re on a path right now toward the number of able-bodied people not working surpasses the people who are. There are 100 million not working. There are 160 million who are.
And honestly, why am I not part of the 100 million not working given that the Fed continues to paper over deflationary technology? It’s a simple thing that happens. Again…
Technology to Displace Jobs
Companies like Amazon create technology that displaces jobs and competitors. Next, the Federal Reserve prints money to bail out the investors in those companies and the newly unemployed. Then, people take all that money and it drives up the cost of rent, food, energy, and stocks.
Then, the companies that create deflationary technology now can borrow unlimited money or issue new stock to invest in new deflationary technology. The cycle repeats.
That is my message today. Take your money and invest in robots. This image is from 2014:
What do you think has happened over the last seven years? The same trend. Technology that extracts money from human capital is displacing wage growth. It’s literally that simple. And it’s NEVER going to slow down. Ever. Ever. Seriously. Ever.
So, own the Invesco QQQ Trust (NASDAQ:QQQ). Buy Amazon (NASDAQ:AMZN). Buy tech and don’t stop. Invest in the companies that the Fed continues to incentivize forever and ever. This is a really stupid economy, and this is the code moving forward.
The Fed is broken. They are trying to stop deflation instead of embracing it. All they can do is print money, paper GDP growth over, and then keep doing so. It’s utterly stupid.
Become a member of the investor class by eliminating the jobs of the workers. It won’t end well, but at least you won’t be stuck making minimum wage.