proletariat
pro·le·tar·i·at
The class of industrial wage earners who, possessing
neither capital nor production means, must earn their living by selling their
labor.
The poorest class of working people.
The propertyless class of ancient Rome, constituting the
lowest class of citizens.
from Latin prōlētārius, belonging to the lowest class of
Roman citizens Derived originally from the Latin PROLETARII, the name given in
the census of Servius Tullius to those who were of value to the state only as
baby makers (PROLES)
Proles came from Latin pro- + olēs (“growth”)
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TIP OF THE WEEK
Workers unite for small business.
Small businesses play a disproportionately large role in
our labor markets: half the Americans that work for a private business work for
a small one.
And with entrepreneurship surging since the pandemic,
that role is poised to grow further.
Small businesses created over 70 percent of net new jobs
since 2019. In the previous business cycle, small businesses created 64 percent
of net new jobs.
An important component of this has been credit to small
businesses with government guarantees.
Charge-off rates for the SBA’s flagship small business
loan guarantee programs are at their lowest on record.
I am not making any of this up. This just came out from the US Treasury
analyzing Small Business and Entrepreneurship in the Post-COVID Expansion.
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Indices:
PRIME RATE= 8.00%
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SBA 504 Loan Debenture Rate for September
For 20 year debentures, the debenture rate is only 4.45%
but note rate is 4.517% and the effective yield is 5.833%.
For 25 year debentures, the debenture rate is only 4.45%
but note rate is 4.499% and the effective yield is 5.765%.
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AHEAD OF THE YIELD CURVE
The Federal Reserve was looking out for the proletariat.
The recent ½ percent drop in the fed funds rate was
driven primarily by employment concerns.
In its statement after its last meeting on monetary
policy, the Fed said "The Committee is strongly committed to supporting
maximum employment and returning inflation to its 2 percent objective."
This wording regarding employment is new and suggests
that the decision for a larger cut was due to the FOMC wanting to signal that
they want to avoid further cooling in the labor market.
No cooling was reflected in the job numbers for September
as employment increased by 254,000.
The monthly average in payroll gains for the third
quarter is 186,000, somewhat above the monthly average for the second quarter
of 147,000, but slower than 267,000 in the first quarter.
After the employment numbers came out, the 30 year
Treasury bond jumped up to 4.255%.
At last month’s auction of 30 year Treasury bonds, the
high yield was awarded at 4.015 percent.
Keep your eyes and ears open for this week’s auction of
30 year Treasury bonds.
Here is what the 30 year Treasury bond has been doing and
this week’s interesting little table of data:
2014- 3.97
2015- 2.91
2016- 2.32
2017- 3.16
2018- 3.13
2019- 2.594
2020- 1.216
2021- 1.88
2022- 2.375
2023- 3.741
2024- 4.015%
So what does all this mean?
I don’t know.
The long end of the yield curve prognosticates
inflationary expectations and ultimately market rate expectations.
Just after Labor Day the inversion of the yield curve
ended with two year treasury rates now below the 10 year yield.
The yield curve had been inverted for a staggering 783
consecutive days, the longest such period in U.S. history.
More procellous promulgations on the yield curve is
profligate.
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OFF BASE
In George Orwell’s book 1984, Proles were the lowest
class of people but made up about 85% of the population of Oceania.
While impoverished, powerless and a massive group of
people the proles were free, unlike the rest of Oceania. They are not checked
by the Party on what they do and think; therefore the proles are the only ones
able to take Big Brother down.
Something to think about over the upcoming three day
weekend.
Columbus Day is an official Federal holiday recognized by
the Federal Reserve.
Originally celebrated on October 12th to celebrate
Columbus’s arrival in the Americas on October 12th, 1492, the Uniform Monday
Holiday Act moved permanently to a Monday Washington's Birthday, Memorial Day
and Columbus Day as federal holidays.
As a result, Columbus Day is always celebrated on the
second Monday in October.
