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Tuned In

Submitted by Atlas Indicators Investment Advisors on June 28th, 2023

You’ve never been able to spell America without AM.  Although the Canadians get credit for it, our world has benefited from Amplitude Modulation since 1906.  That could all be changing.  Many automakers are omitting the technology in their latest cars rolling off the assembly line.  For many, it is an issue with electromagnetic interference as electric vehicles become a larger part of their offering, but at least one automaker is also taking them from their combustible engines as well according to this article from theHill.com. 

 

Amplitude Modulation operates by modulating (varying) the strength of the signal in relation to information being sent.  Sounds from the transmitter change the height of the outgoing waves which are then interpreted by the receiver and converted into sounds for our listening pleasure.  While an incredible feat, it has issues, mainly interference.

 

Economies aren’t unlike an AM system.  Individuals produce signals through their behavior.  These signals are sent to receivers as economic indicators.  But they don’t come through with perfect fidelity.  Instead, we’re left with statistics to interpret the aggregate signals.  And like eardrums, individuals must then interpret the interpretation.  Currently there is a lot of interference in the ether.  We just got through the debt ceiling issue.  This will in turn lead to more debt issuance from the government which will lead to its own knock-on effects.  Pile on the geopolitics, an election cycle that is gaining a head of steam, any number of local challenges unique to individual regions in America, and an economy which seems to have a slowing trajectory, and we’re left with a lot of static.

 

And there’s one other input to all the static: Congress.  Per this article from the Associated Press, these automakers are trying to do away with the older technology, and a bipartisan group created a bill called the “AM for Every Vehicle Act.”  To be fair, they argue that this form of communication is critical during disasters, especially to rural communities.

 

Should it happen, getting rid of the AM dial might take an adjustment for some of us.  I recall fond times listening to Chick Hearn call the Los Angeles Lakers games when the televised version was unavailable.  For others, it won’t show up on their radar, having lived their entire lives in a world where you can fast forward through commercials or even increase the playback speed while listening.  I cannot imagine Chick’s play-by-play at an even faster pace.  Use of the technology may be being sunsetting, but we’ll still spell America with AM.

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