The Distribution Phase

From the deflationary phase of the business cycle, which includes the disinflationary part of that phase like we see with the price of energy where supply exceeds demand despite the opposite prediction, our economy proceeds into the distribution phase from here.

The price of energy is a significant factor in this distribution because it was a primary causal factor for the deflationary phase of the cycle. Seventy percent of the demand on the price of energy and, consequently, food was speculative following modification of commodity futures trading law back in 2002. An acute slope in the price from that time supports the null peak-oil hypothesis, and more fully confirmed by the latest attempts to support the price of oil.

There was very little indication that peak-oil was nothing but a fraud on the market fundamentals to justify a generally deflationary price. The consolidated capital is still intact to drive the bid on energy commodities to a peak, deflationary level, but since deflation has been attained, there is not only the oil on the market from the artificially high price--the fundamental fraud--but the declining demand. The result is a retrace on the value, a technical correction, that will compress the price of oil below $50/bbl.

The retrace on energy values marks the beginning of the distribution phase of the business cycle. It will be supported by the political cycle.

The reports on increased sales of homes is not a part of the distribution phase of this cycle. It is a part of the deflationary phase and is not disinflationary. These homes are being bought on forclosure to be retailed in the distribution phase.

Like I said, the real estate sector operates inimical to our economy in every phase. The profits need to be recapitalized to "disinflate" prices so that The People can have a place to live affordably without speculators, and that includes their agents, that ridiculously arbitrate the values, control local governments, and pocket the benefit out of pure greed and entirely at the expense of the average working American. It produces phony wealth that steals value form honest, hard working Americans to satisfy a bogus, inimical sense of class status that unnecessarily inflates property values and taxes.

A Democratic legislature and executive is extremely bullish for financials, and the economy generally, because there will not be a tax increase, but a rebalancing of the tax burden from a regressive, deflationary value to a progressive, pro-growth value.

Progressing the tax code combined with strategic reinvestment from the consolidated capital into consolidated markets like energy, a pluralizing of the marketplace, will be highly disinflationary and extremely bullish for asset values, quickly reflected in equity valuations.

An Obama/Biden executive is a very strong positive. It will be a highly pragmatic, non-ideological administration that will effectively minister to the needs of The People. We will be able to quickly move from providing for what We need to what We want, making for a very robust growth factor that, if We ensure pluralism of the marketplace, will be sustainable with full employment and low inflation.

The distribution phase of this cycle can be exponential and timely so We may move forward with an efficiency that is by-and-for The People.

Crisis will be just the memory of what "We The People" don't want, don't need, don't deserve, and are self-determined to not allow.

Vote Obama/Biden, and the change We need is on the way!

Fed Report on Business Conditions

The Fed confirmed the economy is in a persistent state of stagflation as independent observers readily predicted from the outset of the Bush tax cuts and the Fed always supported as sound economic policy.

Identifying the determinants and recognizing the indicators for a stagflationary trend is to admit that the Bush tax cuts (trickle-down economics, or more recently known as Reaganomics) does not work even with a multi-billion dollar stimulus package. The evidence is overwhelmingly negative, yet the speeches at the Republican National Convention were strong positive on continuing the Bush tax cuts.

The convention speeches did not mention how the highly regressive tax code resulted in a huge budget deficit and stagflation, just like when it was called Reaganomics.

For conservatives, this is not a case of making the same mistake over and over again, but a successful means of cycling the political economy from contraction (accumulation) to expansion (distribution) of wealth.

An Obama executive will hasten the distribution phase of the cycle, producing wealth to be later consolidated in the accumulation phase of the cycle.

The Hamiltonian model of political economy (Reaganomics--the Bush/McCain tax scheme) does not allow the vast majority of Americans to keep the wealth they create, but consolidates it through a regressive tax code and consolidation of industry and markets.

The allowed consolidation of indistry and markets creates a demnad for government which is financed with a regressive tax burden, keeping the rich rich and the poor poor in an endless cycle of boom and bust, or the business cycle. The Fed's report today confirms the highly predictable, but preventable, phase of the cycle that is completely dependant on the tax code and the amount of allowable pluralism in the marketplace.

Progress the tax code, deconsolidate the capital and markets and the phenomenon of the Republican National Convention will be limited to a sociological farce without the possibility of political practicality.

If you want economic stability and a prosperity that is a personal financial security beyond the top one-to-ten percent class of incomes...let the majority rule!

Join the coalition for Obama/Biden 2008!

Very best wishes.