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In-Brief

• The elections in two weeks are certainly a battle between Democrats and Republicans. They will be interpreted that way. But the elections should also be interpreted as a vicious battle between radical wokeness and traditional American values, morals, mores, culture, and history. This latter battle is much more important than the partisan battle.
• It is now accurate to say that the US economy, at least for the short-run, is in “stagflation.” That is a period of high inflation and slow or no growth. It was caused by the horrible fiscal policies of the Biden administration and the flawed monetary policies of the Federal Reserve. Stagflation may give way to recession. Over 80% of Americans believe we are in a recession or headed to one.
• A severe defeat for Democratic candidates in November is still in the cards. Keep your powder dry until late October when we will see the last-minute trends. Recent polls continue to suggest growing Republican strength in major races.
• Individual Senate and Governor election predictions are made in the main report.
• China’s economy remains in deep trouble and is stagnant. President Xi got a new 5-year term this week. More importantly for China and the world, he doubled-down on his failing economic and political policies.