The federal reserve has announced they will support the economic agenda of the Biden administration by allowing rapid inflation. The FED is trying to provide cover for JoeBama’s economic plan. The era when the FED could impact inflation is long past. However, the Joe Biden policy impact will be clear, immediate and concise. The U.S. middle-class and blue-collar worker are about to be crushed under rising prices for consumable products.
Increases in inflation hit the working class (Main St) much harder than the investment class (Wall St) and financial elites. Factually the multinationals benefit from U.S. inflation as it puts pressure on domestic companies to ship their manufacturing overseas. Wall Street likes that. This dynamic has been an issue not-discussed by the financial media for decades. First, the Reuters article (when you see “commodity prices” think about the term “consumables”):
REUTERS – The U.S. Federal Reserve has signaled it will tolerate faster inflation for a time to cement the post-pandemic recovery and boost employment, but the side effect is likely to be a faster rise in commodity prices.
[…] After its latest meeting on Wednesday, the Federal Open Market Committee confirmed it will seek to achieve the *twin objectives of maximum employment and inflation at the rate of 2% over the longer run.
[*NOTE: in the new era of global economics these two are mutually exclusive. The FED is intentionally ignoring this point.]
[…] The committee noted price rises have been running persistently below target, so it aims to achieve inflation moderately above 2% for some time to make up the shortfall and anchor expectations at around the 2% level.
[…] The plan is to run the economy hot to achieve faster job gains, especially among disadvantaged groups that are marginally attached to the labour force, before shifting back to inflation control later in the cycle.
But the resulting pressure on global supply chains while the Fed pursues employment increases is likely to generate significantly quicker price rises for raw materials and a range of manufactured items. (read more)
This perspective is fundamentally false and based on assumptions that are decades old economic arguments. The reality of what will happen is exactly the opposite on the employment front.
The JoeBama administration is attempting to hide their economic program behind the smokescreen of a COVID economic bound; but the reality of what will happen is exactly the opposite. Employment is going to drop far below pre-COVID numbers.
The problem that people do not understand, and the federal reserve will intentionally not consider, is that Macro Economic principles no longer apply in the era of global economics and multinational trade. I have outlined this dynamic for years. What did Trump see that politicians were intent on hiding?
WHAT WAS THE PROBLEM?
Traditional economic principles have revolved around the Macro and Micro with interventionist influences driven by GDP (Gross Domestic Product, or total economic output), interest rates, inflation rates and federally controlled monetary policy designed to steer the broad economic outcomes.
Additionally, in large measure, the various data points which underline macro principles are two dimensional. As the X-Axis goes thus, the Y-Axis responds accordingly… and so it goes…. and so it has historically gone.
Traditional monetary policy centered upon a belief of cause and effect: (ex.1) If inflation grows, it can be reduced by rising interest rates. Or, (ex.2) as GDP shrinks, it too can be affected by decreases in interest rates to stimulate investment/production etc. However, against the backdrop of economic Globalism -vs- economic Americanism, CTH is noting the two dimensional economic approach is no longer a relevant model. There is another economic dimension, a third dimension. An undiscovered depth or distance between the “X” and the “Y”.
I believe it is critical to understand this new dimension in order to understand Trump’s MAGAnomic principles, and the subsequent “America-First” economy he was building.
As the distance between the X and Y increases over time, the affect detaches – slowly and almost invisibly. I believe understanding this hidden distance perspective will reconcile many of the current economic contractions. I also predict this third dimension will eventually be discovered/admitted, and will be extremely consequential in the coming decade.
To understand the basic theory, allow me to introduce a visual image to assist comprehension. Think about the two economies, Wall Street (paper or false economy) and Main Street (real or traditional economy) as two parallel roads or tracks. Think of Wall Street as one train engine and Main Street as another.
The Metaphor – Several decades ago, 1980-ish, our two economic engines started out in South Florida with the Wall Street economy on I-95 the East Coast, and the Main Street economy on I-75 the West Coast. The distance between them less than 100 miles.
As each economy heads North, over time the distance between them grows. As they cross the Florida State line Wall Street’s engine (I-95) is now 200 miles from Main Street’s engine (traveling I-75).
As we have discussed – the legislative outcomes, along with the monetary policy therein, follows the economic engine carrying the greatest political influence. Our historic result is monetary policy followed the Wall Street engine. THIS PART IS CRITICAL:
[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street). [This important acceptance is just common sense. The U.S. GDP is currently around $20 trillion, but the total valuation of the Wall Street stock market is much larger than our GDP. Wall Street is more valuable than Main Street. It is a simple albeit important reality to accept.]
Investments, and the bets therein, needed to expand outside of the USA. Hence, globalist investing.
However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.
As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.
When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.
When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.
There is a natural disconnect. (more)
Here is an example of the resulting impact as felt by consumers:
♦ TWO ECONOMIES – Time continues to pass as each economy heads North.
Economic Globalism expands. Wall Street’s false (paper) economy becomes the far greater economy. Federal fiscal policy follows and fuels the larger economy. In turn the Wall Street benefactors pay back the politicians.
Economic Nationalism shrinks. Main Street’s real (traditional) economy shrinks. Domestic manufacturing drops. Jobs are off-shored. Main Street companies try to offset the shrinking economy with increased productivity (the fuel). Wages stagnate.
Now it’s 1990 – The Wall Street economic engine (traveling I-95) reaches Northern North Carolina. However, it’s now 500 miles away from Main Street’s engine (traveling I-75). The Appalachian range is the geographic wedge creating the natural divide (a metaphor for ‘trickle down’).
By the time the decade of 2000 arrives – Wall Street’s well fueled engine, and the accompanying DC legislative attention, influence and monetary policy, has reached Philadelphia.
However, Main Street’s engine is in Ohio (they’re now 700 miles apart) and almost out of fuel; there simply is no more productivity to squeeze.
From that moment in time, and from that geographic location, all forward travel is now only going to push the two economies further apart. I-95 now heads North East, and I-75 heads due North through Michigan. The distance between these engines is going to grow much more significantly now with each passing mile/month….
However, and this is a key reference point, if you are judging their advancing progress from a globalist vessel (filled with traditional academic economists) in the mid-Atlantic, both economies (both engines) would seem to be essentially in the same place based on their latitude.
From a two-dimensional linear perspective you cannot tell the distance between them.
It is within this distance between the two economies, which grew over time, where a new economic dimension has been created and is not getting attention. It is critical to understand the detachment.
Within this three dimensional detachment you understand why Near-Zero interest rates no longer drive an expansion of the GDP. The Main Street economic engine is just too far away to gain any substantive benefit.
Despite their domestic origin in NY/DC, traditional fiscal policies (over time) have focused exclusively on the Wall Street, Globalist economy. The Wall Street Economic engine was simply seen as the only economy that would survive. The Main Street engine was viewed by DC, and those who assemble the legislative priorities therein, as a dying engine, lacking fuel, and destined to be service driven only….
Within the new 3rd economic dimension, the distance between Wall Street and Main Street economic engines, you will find the data to reconcile years of odd economic detachment.
Here’s where it gets really interesting. Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of the economic inflation lag during the Trump administration. Which, rather remarkably I would add, was a very interesting dynamic.
Trump was in charge… Now think about these engines doing a turn about and beginning a rapid reverse. GDP could, and as we saw did, expand quickly. However, any interest rate hikes (monetary policy) intended to cool down that expansion -fearful of inflation- would take a long time to traverse the divide. That is exactly what happened.
Jerome Powell attempted to block the America First program with interest hikes; however, his efforts were futile because of the distance between the two economic engines. President Trump was focused on assisting Main Street, and Powell’s attempts at impacting Main Street growth couldn’t impact Trump’s program.
During the Trump era we actually imported deflation because China and other nations were attempting to avoid tariff cost increases; so they devalued their currency. The problem for them was that devaluation of their currency not only made their tariffed goods cheaper, it made the non tariff goods cost less. As a result we were importing deflation from around the world.
Inflation on durable goods could not be significant until those nations stopped devaluing their currency. Simultaneously, as international trade agreements were renegotiated the originating nations of those products were forced into the same type of economic detachment described above.
The global manufacturing economies first responded to increases in export costs (tariffs etc.), by devaluing their currency; then they began driving their own productivity higher as an offset, in the same manner American workers went through in the past three decades. The manufacturing enterprise and the financial sector (connected to the consumer) remained focused on the pricing.
♦ Inflation on imported durable goods sold in America, while necessary, was -as we expected- ultimately minimal during this initial period of Trump policy. Predictably, if we stuck with the program inflation would have expanded significantly as time progressed and off-shored manufacturing found less and less ways to be productive. Over time, imported durable good prices would increase – but it was going to come much later; and by that time our own industrial base would be re-established.
♦ Inflation on domestic consumable goods ‘would’ likely rise at a faster pace. However, as we saw U.S. wage rates were respond faster, naturally faster, than any monetary policy because inflation on fast-turn consumable goods became re-coupled to the ability of wage rates to afford them…. and the labor market was on fire. Wages were factually growing faster than inflation during Trump’s term in office.
The economic policy impact lag, caused by the distance between federal monetary action and the domestic Main Street economy, was -under the Trump policy- now working in our favor. That is, in favor of the middle-class. Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, that was our new economic dimension….
What JoeBama 3.0 is proposing now, and what the Federal Reserve just announced they are going to support, is a return to the prior economic model where Wall Street multinationals benefit and the U.S. middle-class is pushed into their intentionally created “service driven economy”.
Inflation on domestic consumable goods (food, fuel, energy) hurts the U.S. middle-class, it does not hurt the multinationals, the elites and Wall Street investors. It takes a long time for inflation to push up wages when the workforce is experiencing lay-offs due to downsizing, outsourcing and expanded imports of multinational products.
But it doesn’t stop there…. If we get too granular, missing the larger picture, it is difficult to understand. However, if we stay at the elevated perspective, understanding leads to awakening. We start to see how the various JoeBama policies intersect.
In generally approximated terms 2020 has delivered a serious financial blow to Main Street businesses.
The COVID-19 lockdowns and shutdowns have led to business in your local community suffering massive losses of income while simultaneously taking on debt directly from lenders or indirectly from government relief efforts. Main Street has been hit hard, some analysts estimate 40 to 50 percent of those service businesses may not recover.
Conversely, the COVID-19 lockdowns and shutdowns have created a massive income benefit for multinationals, Wall Street corporations and big tech. Amazon, Walmart and massive tech companies had their highest earnings ever recorded.
According to most maco-analysis somewhere around forty percent of Main Street economic wealth was lost or suspended in 2020 due to COVID-19. Simultaneously the multinational firms have seen increases in stock evaluations of forty percent. These two almost identical numbers are not coincidental. The billionaire class (multinationals) have gained wealth in an almost identical amount the middle-class (Main Street) lost.
These empirical results are accepted. No-one is challenging the shift of financial resources was/is directly related to regional COVID policy. The math is the math.
Where things change from simple economic math to downstream consequences is where the story is really told.
This is where we are going…
This is where we have been going ever for decades, COVID-19 has (not coincidentally) just sped up the process.
If you take out a national map and: (1) put a green pin in the areas where the lock-downs are most severe (draw a 100 mile circle); then (2) put a red pin in the areas where the riots and local anxiety was highest in summer 2020; then (3) put a white pin in the seven counties where election fraud was prevalent; then (4) put a blue pin in the areas known as “Opportunity Zones“, what you will see is a direct correlation. This is not accidental.
There are more than 8,760 designated Qualified Opportunity Zones (PDF) located in all 50 States, the District of Columbia, and five United States territories. Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged or until December 31, 2026. (link)
If you are a member of ‘THE BIG CLUB’ with a massive influx in capital due to the benefits of the COVID-19 lockdowns, limits and regulations, the Opportunity Zones are now the perfect place to expand ownership and wealth. Take advantage of the Main Street weakness, make moves with government authorization, and do so without capital gains.
The regions where real property will be purchased at a low cost will, not coincidentally, be the “opportunity zones” where investment transactions without capital gains can be made. The areas where riots took/take place will sell cheap. “Opportunity zones” allow for mass investment moves from billionaire class without paying capital gains taxes.
The mass accumulation of wealth (multinationals) at the upper tier of Big Tech and the multinational billionaire class (technocrats) during COVID is approximately +40% since it began. 40% of Main Street businesses wiped out. Not coincidentally almost 40% of wealth has been transferred from Main Street to the Wall Street mega-corps and multinationals.
“Never let a crisis go to waste”…
Only in 2020 the “crisis” was (yet again) by design. The highest level of COVID mitigation control in the Blue states is not coincidentally in the same states with the largest number of Opportunity Zone regions. As a direct result of this mass transfer of wealth to the upper tier the “opportunity” is an unprecedented level of Main Street ownership by elite interests and foreign nationals.
It gets worse… Just like the banking and real-estate crisis of ’07/’08 the government steps in to back-fill the Main Street losses to the mass U.S. population. When an individual or family receives the relief money, they still cannot support Main Street because in many areas they remained forcibly closed. Paying down debt and making purchases in the same lock-down strata only ends up putting those relief funds into the hands of the banks and multinationals who were allowed to operate.
Continued consumer spending only feeds the beast that is -by policy via purchased politicians- designed to destroy us. In essence, we are paying the Technocrats, bankers and multinational corporations to fatten their bank accounts while the U.S. government re-opens the economy with a finger on the scale to benefit the multinationals.
This is by design….
This has always been the design…
CTH has been warning about this for well over a decade and we exhibited the (un)natural conclusion with this graphic:
Sadly, most Biden voters won’t be affected as they are either wealthy, on welfare, or government workers.
Biden didn’t have the most voters. But your point is even more valid with that in mind.
The agenda is to destroy the USA. It’s the only way to enslave the planet.
Will it be Europe or the USA that starts the Civil War first?
Either way it’s coming and they think they’re protected? There will be no place to hide. Everyone eventually reaches their breaking point.
They can and do track our every move, while hoovering up every type of communication we use. Anybody that tries to throw out our corrupt Government will be charged with treason, sedition, domestic terrorism or what have you. If you talk it over with friends, conspiracy to all the above will be added. In recent months I purchased a Glock 17, 22, 44, a TC22, DP12, KS7, AR15, AR9 and thousands of dollars worth of ammunition for the storm that is on the horizon. Have a supply of food, cash and precious metals. I do not see any way that this will end well, given what I have observed over these past few years.
All smart things to do to individually prepare
It will eventually end well.
The collective consciousness of good people will always prevail
Unfortunately there will be much travail and most of us won’t see the fruit but eventually
oppression and tyranny fail.
You would be smart not to broadcast this info to the feds. They pay people to monitor Patriot sites. Just saying…
There isnt enough testosterone in Europe to stage a water balloon fight let alone a civil war.
Hell they have pretty much offered all their daughters to the invaders.
Isn’t that the truth!
According to MA, EU.
Already starting in Columbia. They are smart people that have been pushed to the limit
It is the middle-class they need to eliminate before they can reach their goal……a true Communist Nation. They won’t be satisfied until they see people loading cattle cars on their way to forced labor. Every Communist Country has eventually come to this point. Venezuela the latest.
I have three Cambodian friends and it is exactly what came to them during Khmer Rouge Communist takeover until they escaped. They became boat people is how they got to America. They see the same thing happening today here in America and are scared to death with what they are seeing.
Such a tragic trajectory as the Biden administration has embarked on eventually only has one ending: https://www.npr.org/sections/parallels/2018/05/12/610132680/many-venezuelan-workers-are-leaving-the-job-and-the-country
Wow, this is from NPR. Hell may be getting a little frosty.
I worked with a Cham Cambodian in the electronics industry. He told me a story of him and his brother and many others being marched to a pit by the Khmer Rouge where they were bashed in the head and fell into the pit. He survived and was able to crawl out of the ditch late at night and sneak away. He somehow made it to America. A very humble and good person and a sad story but these stories need to be told.
My stepfather and mother are from vietnam.
He came in a boat with his son in 1980.
My parents say they see so many parallels.
Ugh
Yeah, cause if America falls, there is no place to go.
Once again, we are confronted by those who conduct themselves by the adage that “might makes right”.
Not the first time this battle has been fought.
The economics Sundance outlined, will lead to higher prices in the short term, but eventually drop in production, and shortages as a result.
I don’t think this latest generation will be any more successful, in their attempt to “rule the World”, than any of their predecesors,…
They may bring down “Civilisation as we know it”, however.
Going back to being “hunter/gatherers” isn’t such a bad thing, actually.
So glad to see you Dutch, seems like you’ve been away.
Exactly!
RATS all supported by the American Tax Payer.
Wealthy RATS
Kickbacks from Crap Sandwich I & II
$1.9Trillion (Non) COVID Infrastructure Tax Package
and “Couple of Trillion” American Infrastructure Tax Package
Insider Trading.
Government Leeches, I mean, “worker” RATS
Inflated wages, benefits, vacations & pensions.
Welfare RATS
80+ welfare programs.
Lulu, spot on. Thank you for the comment. Prior to visiting CTH and reading this, I engaged my MIL in a long conversation about the current state of the country. I summarized by stating that 50% of Americans work to support the other half who fall into those categories.
CTH readers are the best! Have a great weekend!
Or too stupid to realize that, no, a 4lb bag of sugar for $4 is not the same price as a 5lb bag of sugar for $4…
They’ll be told not only that inflation is a conspiracy theory, but also that a lot of inflation is good. Anybody who says different is a non-believer to be shunned.
And they’ll believe it. Because they were told to believe it. When meat hits $30/lb, they’ll blame Old Scratch, COVID, or white supremecists.
Your talking about people who believe the Climate change scam, the Covid scam, the Russia scam,…etc.
So yes, they’ll believe whatever Big Brother TELLS them to believe.
The dream of the Communists: America becomes East Germany, or any other Communist state. America will be unemployed and receiving fake money from an illegitimate government to buy overpriced junk made by slave-labor in China.
Except for food, which will suddenly be in short supply because of regulations and skyrocketing prices for fuel, fertilizer, and farm equipment…along with high prices for the food itself.
See this article on how copper prices could be acting as the proverbial “canary in the coal mine” for an era of hyper-inflation and massive unemployment: check Germany’s Weimar Republic 1923.
https://economicprism.com/dr-copper-is-talking-are-you-listening/
If this happened under Trump the enemedia would construct the ed narrative that its policies fault and he doesn’t care about the cost to everyone but “the rich”. But with Biden it will be sold as a necessary evil for our own good to cover for his and his handlers ineptitude. This is not to protect Biden though but rather to provide cover for Harris. They will jettison Biden as soon as they are told hes no longer needed.
I have never understood the justification for the extraordinary rise in higher education costs. most facilities are fixed, new facilities are donated by alum. It is a sham.
Easy, anytime the Government destroys the free market, prices and fraud go up while value goes down.
Three sectors of the economy, higher education, housing and medical care, have had prices rising faster than the rest of the economy, for MANY years.
The three sectors with the greatest government involvement.
No coincidence.
They doubled/tripled and so on the size of administrative staff. Then there’s the housing that is nicer than most adults have. And the rock walls, state of the art fitness centers, etc.
Notice where inflation is most. Where gubmint gets involved. If as a service provider, you know you will be paid regardless, there is never incentive to keep prices low. You will always get paid.
The things that show low inflation, TVs, toys, software (computer games), and clothing are the “bread and circuses” to keep us numbed and entertained.
On an individual survival level, those of us who get it just need to learn and live on bare minimums. Shop thrift stores helps local communities (not goodwill as they are for profit), my personal book collection is probably 3,000. If you have a piece of land, learn to live close to the land. Plant stuff. Buy old American hardware when available. Just a few weeks ago, I even bought old kitchen ware at an estate sale, utensils, serving pieces, etc made in US.
Yes, they will come after you in the long run, but less reliance on them as possible is key. Keep your head down and under radar.
You seen what a University President makes lately?
I have a friend who has a Harvard Masters degree in Finance. She said looking back on it, the whole thing is nothing but a huge scam.
Have you been in a college campus lately? They’re basically a country club resort. Many schools load up degrees with utterly pointless General Education (GenEd) classes. If you have to take 32 classes to get a degree, but 8 of them at genEd, that’s 25% inflation. Then just give everyone raises that exceed inflation while putting in three new swimming pools.
Bud,
Communist academics and the Federal student loan program.
It is that simple.
Middle class paying for the ‘free’ education for underprivileged, minority, illegal immigrants. Same concept as those with private insurance paying the hidden cost of uninsured, Medicaid and Medicare which underpay.
Government loans are handed out freely and sustain the high price of colleges and universities, while the kids go into deep debt clueless about how long it will take to pay it back. In the meanwhile, colleges and universities can hike tuition at will. And the cycle continues.
Take a look some time at the average public costs for various cities & States. The average cost for public education in NYC is $35K/year, there are places in the USA where that cost is $7K/year. Do you think those NYC students get an education that is 5X better than that $7k/year student? Actually, the complete opposite is true; about 50% of NYC high school graduates can barely read. So how did those education costs there rise to such ridiculous levels?? Strong teacher’s unions & spineless politicians; unfortunately, don’t expect that to change, it is probably only going to get worse.
At least Jimmy Carter left us with peanuts.
And Reagan.
When is President Trump going to come out blasting all of this nonsense and lies we are being told by the uniparty? He knows their game!
Who would hear him? They ban anything with him on FB, Twitter, and YouTube. The MSM only plays clips in narrative-driven pieces.
There is no way to get the message out until he gets his website up.
The recent car interview with Lou Dobbs got me hoping that he and PDJT will be in the same social media enterprise.
Even Faux News edits most of what Pres. Trump says. Can’t let the truth get out
He said his rallies will start again in May
This is how they finish us off…..WHEN IT ALL GOES DOWN, SO DO THEY!
They have us surrounded. Now we can attack in any direction.
Attack in all directions.
We outnumber them. We just don’t have the same force multipliers that they do for the current phase. In the next phase, the force multipliers favor us.
Exactly.
Once the middle class is destroyed … the government workers and welfare plantation voters will be cut off … only wealthy RAT politicians & bezos-billionaires will live in profound luxury – like the Soviet Union … everyone else is a slave – living on the street & digging up rotten potatoes with their bloodied fingers.
But stock in wheelbarrow companies !
“The committee noted price rises have been running persistently below target,”
I’m currently building a small home. The committee obviously hasn’t seen the price of wood if those prices are persistently below target.
I had noted the extreme high price of lumber and was waiting to build. Then several months ago I saw a multinational type locking in a big lumber contract for about 40% below the current market rate. So I waited and thought the price would come down and that supply and demand would eventually generate lower prices (California building less, etc. ).
Then I read Sundance explanation on how supply and demand no longer drives the prices. It’s multinationals setting whatever price they want based on who can most afford to be stolen from. It was a hard reality to accept, but I’m grateful to now be in the know regardless. Bottom line, I decided to build mostly because of my realization that the dollar will soon be worthless and their is no point in having any. Just continuing to set up for as much self sufficiency as possible.
Learn how to read commodity charts. Monopolies control the means of distribution and production. They do not control the market price. You had plenty of time to hedge the construction of your new home if you were paying attention to commodity prices.
Please watch the charts for me and tell me at what point in the next two years I should have waited to start the build.
Free information became available on the internet soon after the March 2009 lows, relatively speaking, in the equity markets for all markets. You can find historical information back to 1973 for the continuous futures lumber contract including real time data for any intraday time frame. All you need to do is learn technical analysis to support your fundamental analysis.
And we SEND people to DC ‘to represent’ us. How many feel represented?
Congress is one worthless, crooked, fraudulent, deceptive cabal, lock stock and barrel. ALL go to DC TO BECOME $millionaires and care one damn about We The People.
CONGRESS has ALLOWED mid-working class to be destroyed.
At top, affluent, wealthy (congress and all their biz partners, Big Tech, Big Pharma, K St, Wall St, Donor Class). Pocket chg to them for what goes on in the world
Mid-working class for past 30Y has declined and declining. Any chance of moving up in society is nil. Can’t work or prosper any more. Our parents, g’parents could. Today, govt, govt intervention, policies, taxation, legislation and govt regulations won’t ever allow any prosperity.
And the lower classes, undocumented, illegals are being BROUGHT UP to mid-working class standards on the govt dole and off our backs. They get housing, meds, food, health care, education FREE . EVERYONE drives now. EVERYONE lives in a home, has a cell phone, computers; no distinction b/w lower/mid-working class. The top echelons have equalled the footing and the baseline.
HEAR ANY R’s complaining? DOING ANYTHING to keep us from being destroyed??????
They are complaining they don’t have enough $$$.
Poor babies.
They need US to “Help em out”and are asking for Donations.
Cuz…
They’re gonna get em THIS time!!
I’m not sure any of them really understand. Furthermore, they don’t care to understand.
They finally stopped mailing me literature and emailing me for donations after I sent everything back with a reply that they’d never receive a cent from me, and that any donation I make will be directly to MAGA supporters only. I also let them know my disgust at their cowardness for not having Trump’s back which in turn was a stab in mine.
The Fed Chair’s hypocrisy is on full display.
Don’t be bitter, learn to trade.
Andrew Jackson was right. Dumbazz Congress censured him for being correct. They didn’t like him disagreeing with their big banking buddies.
https://www.campaignforliberty.org/andrew-jackson-and-the-central-bank
Let me create a smoke screen using wonderful phrasing, sweet words and plenty of misdrection. How big is American debt? Answer: Real big, really big! Who pays for this and how? Workers, we citizens pay every single cent through our labors via taxes. How does the government hide taxes? First is not calling it taxes, then pointing to others–the wealthy, where taxes will increase. How do wealthy people/companies stay that way? Through lobbying where government creates tax laws, or what one might call “loop holes” for the uninformed. Anyone remember the money supply game…M1, M2, etc.? What happens when there is too much money in the markets? A buck today is worth 100 pennies, tomorrow it takes 120 pennies to achieve the same buying power. But what happens to those debt numbers and those IOUs (bonds, etc.)? Less value in debt, holders take it in the shorts! How do they respond? Raise interest rates, charging more for the use of monies. What a cycle! Who gets screwed, blued and tattooed?
The people who work 40 hours a week, most Americans who are on a fixed rate for they now are spending more money for the same items they need to live on and those they use to enjoy life…meaning more bucks go to keeping alive, keeping clothes on the body, keeping a roof over your head, keeping fuels in your machines.
Yet the balance books will look much better as you hold onto your Confederate dollars asking why they might be worth close to nothing . Sweet words, seductive language…orange man bad you say? Guess again! Yea, the election was not stolen, Pence was standing out front, ready to take a bullet for America, he was determined to stop the steal if it cost him his life…guess again. John Kerry goes sailing on his wife’s 5 million dollar yatch while you pay more for your Ketchup.
Can you say “I was a sucker!”? Who needs reading, writing and arithmetic when it is more important to learn about equity. Daddy (government) will give you everything for free, just wait in the bread line…it is coming!
This is how our government keeps small business from competing, and strips the middle class of it’s consumer leverage.
This creates peasants, who can’t work hard enough to cover their costs to survive.
Because I’m not a ‘team player’, I race around looking for ways to make money based on my skills and not my tenor.
When the Democrats are in charge it is easier to have my individual freedom, but I’m still a peasant.
Establishment Republicans gave corporations more room to cut off , my ability to compete with them, thru regulation. I’m still a peasant.
President Trump’s policies delivered more customers into my market. Now when I compete with the corporate market, I can clearly out perform, their ‘my way or the highway ‘ regulations with a better and more affordable product. Word of mouth is my advertising. I don’t even need a business card.
American consumers have grown, to liking this way to do business, so much, in a short time. They’re not willing to give it up.
Biden’s economy will be overpowered by the Middle class consumer, because he represents lazy lying and inept business. The easy money slavers.
They will come and work in your house, take a dump in your bathtub, but
You can’t fire them, because they’re all you’ve got to choose from.
For me, it is easy to compete against that way to do business.
Tech companies, phone companies, any government commodity, Banks, news, TV, sports, etc.
They all fit into that metaphor.
With a Trump economy, we get the opportunity to,
Just say ‘No’.
Nice post.
Americans have been deluded into thinking their system was the greatest.
Well it was, but that ended a few decades ago.
I am no economist, but have closely watched the manipulation of U.S. citizens.
The Savings and Loan debacle, the tech bubble and the housing collapse around 2008/2009.
Now we watch the Stock Markets in the stratosphere.
Bitcoin and other crypto currency are the fad with many.
It’s all fake!
If one steps back, and no longer “ plays their game” the deck of cards will fall.
Get the heck out of all consumer debt ASAP.
Interesting to us in Canada as oil prices rise, and lumber too. Our $ is up 12% over that of the U.S.A. and most of the rise has come since Biden was installed.
A fluctuating dollar is common, and many Canadians have U.S $ accounts.
However it does seem a little different this time.
Get of the radar as much as possible and simplify life.
Cheers, and
God bless PDJT
It’s interesting to look at that graph. Notice that the things that DECREASED in price are the Impulse Buys (wants) but the things that INCREASED are the NECESSITIES.
If you can’t do without it, they jack the prices SKY HIGH.
But if it’s something they want to TEASE you into buying, the prices CAN GO LOWER.
AND, if it’s something you need to access a BETTER LIFE (college education) the increases were highest of all.
Want college? Man do we have a loan for you! And THAT is how the most motivated, and best potential earners are yoked to debt and become virtual wage slaves.
Learn to trade. Lots of free trading platforms provide the information you seek to keep you aware of market conditions.
On the other hand, like Douglas Adams’ judgement of our planet as Mostly Harmless, my judgement of our higher educational bureaucracy is Mostly Worthless.
Even when I received my highfalutin degree back in 1974, I had learned very little directly from classes.
Everything I learned that led to my career, I taught myself with some assistance from a brilliant family member.
With the resources available on the web today – especially here at CTH! – self-teaching could become a trend along with homeschooling.
The search for intelligent life, in the Universe has so far come to naught.
Goodbye, and thanks for all the fish!
And it shows a 2% increase in cars and trucks anyone buy a truck lately? They are out of sight or reson but that goes for 4 year old trucks as well it was the same to buy new than 4 years old. Nuts.
Stop buying toys and learn to trade. Stop sitting on your hands. We’re one year past March 2020.
Curious why gold is so low compared to copper and silver, anyone know?
Is there a thumb on that scale too?
That “thumb” on the scale is UTILITY. Watch the stocks and activities for the electronics and semi-conductor sectors as well as sectors of goods with integral electronics and building materials (i.e. wiring and plumbing). More of these elements (Cu and Ag) are used in manufacturing for all sorts of products than gold.
Don’t be shocked if the financial safety of gold really fades when cyber currencies take hold. The value of money is then just set and gold has zero value outside use as a raw material for manufacturing specific electronic components.
Powell voices confidence in Fed’s handle on inflation (msn.com)
did another consultation with Pence result in the choice for this fraud to take the chair?
or was it Mitch, again.
It’s a real good time to stock up on toilet paper, vitamins, prescriptions, pasta, canned goods, seeds, any electronics or durable goods you are going to need.
And charts and graphs for trading!
Buy high…
Sell low..
?
Oh, wait…
Powell calling current inflation ‘transitional’ and nothing to react to with higher rates this week is absurd and a clear indication he is intentionally going along with what SD outlines above.
My only disagreement with Sundance is that he discounts the value of economic theory. My son and I came to his conclusions in American Thinker this week *based* were upon economic theory.
Trump simultaneously expanded Aggregate Demand and Aggregate Supply — the main result being economic growth. Biden is expanding Aggregate Demand while constricting Aggregate Supply — the main result being inflation. Powell will do nothing about Biden’s inflation in 2021 because he wants another term at the Federal Reserve. We predicted:
“Powell’s first four-year term at the Federal Reserve ends in February 2022. At that point, the Biden administration will likely reappoint him to a second term so that he can continue to restrict loans to fossil-fuel developers and continue to keep his feet off the interest-rate brakes.
“Eventually, Powell or his successor will discover that it is a lot easier to let inflation get started than it is to bring it under control. Once the Fed puts on the brakes, Biden’s sugar high will turn into a post-sugar crash due to rising interest rates and rising trade deficits.
“The worst case scenario would occur if foreigners stop using the inflating dollar as the medium of exchange in international transactions, resulting in a crash in the dollar’s exchange rate, much higher prices for imports, and a huge cut in the American standard of living. China appears to be preparing for that scenario by rolling out a digital yuan that could be used as an alternative to the dollar for international transactions.
https://www.americanthinker.com/articles/2021/04/jerome_powell_and_the_coming_inflation.html
This rape of the American economy has one large impact not discussed. That being the run away inflation impact on retirement savings. So if for 40 or 50 years a person saves for retirement, that planned retirement money is now, or so to be, far less than what will be needed for basic financial survival.
Medicare is only fully funded until 2026. Plan accordingly.
Well, be aware that old folks are not exactly high on the keep alive list anymore. You may want to avoid “healthcare” industry as much as possible. If you are on a statin, get off it.
Trump’s “defeat” is the gravest self-inflicted wound in world history. Also the greatest lost opportunity. Shameful.
Remember Nancy Pelosi saying on a live interview, wherein she got really pissy for being asked a straight question, “It’s WE who feed the people!!” And she believes that. She believes that Democrats are the virtuous ones and are responsible for “feeding the people”. NO NANCY. You’re not responsible for feeding people. That’s our job. So, you see, they take away our ability to feed ourselves, our families, and those in our communities, so that we are forced towards them. I’ve never been on “welfare” and Lord knows I needed it a few times in life. I don’t say that out of pride. I say that out of a stubborn will to live on my own terms, and work for what I have, in a FREE society. Lord willing, always, Lord willing. They’re still talking about regular monthly checks for the citizenry. Well, I’ll spit on those checks because I know what they represent. I’ll close my bank accounts if I have to. I despise the globalists, the cabal, and most politicians.
“ The plan is to run the economy hot to achieve faster job gains”
Except, the incentive is for people to not go back to work.
I could hire 80 people today but my biggest competitor is the federal government making it too comfortable for people to stay unemployed!
Besides, The MAIN STREET economy cannot be driven “hot”. The supply of discretionary money in people’s wallets is shrinking fast and they cannot afford to buy major items made on shore.
The classical Main Street economic death spiral is being re-initiated:
New restrictive Regulation
New Costa dding Taxes
Rapidly growing inflation on day to day necessities
Number of Domestic IPO’s is tanking again.
Removal of policies put in place to protect Main Street
Foreign Tariffs on US Goods to protect jobs in foreign lands
Tax breaks in foreign lands to draw US Multi-Nationals
Number of Skilled Jobs decline in US as US Businesses close and move off-shore
Consumers onlyabl e to afford cheaper off-shore goods
The march to 2015 is well underway.
Look closely at the graphs in SD’s article.
The most necessary day to day consumer items that do NOT drive GDP and skilled labor needs are at the high end of the graph driving inflation.
The stuff available for people buy with using their rapidly dwindling discretionary funds is at the lower (cheaper) end of the charts. By the way these are the skilled labor and GDP drivers for the main street economy. They are getting cheaper and falling below the sustainable profit margin lines for on-shore production capabilities.
A few other interesting phenomenon, if one watches Economic Sector Reports when examining Market Performance:
Economic Sector growth and decline as companies with International Capabilities or allot of cheap labor are doing well.
Companies with semi-skilled work that can be contracted to illegal immigrants, such as INFRASTRUCTURE work on highways or building are doing well.
Service companies that can off-shore or use unskilled cheap labor are doing well.
Companies supplying INFRASTRUCTURE MATERIALS from both on and off shore are doing well.
Kill off President Trump’s sanctions and there is no need to take the visibly and politically risky steps of re-instating NAFTA and TPP. Plus, import deals can be buried in Green new Deal related trade actions as well as any other Climate or Pandemic Accords signed by the US Government.
Learn to live very frugally and on subsistence level. I am pretty confident in saying that 95+% of lefties cannot live below their means and frugally despite their “back to nature” virtue signaling. They have to keep up with their colleagues.
They are about to find out.
Already have, some time ago,….been practicing for many years.
Deliberate. Targeted. Devastating.
All to plan.
Thanks to Sundance I have learned so much. I’m telling the commies where I work about what is coming and they say …right wing conspiracy theory…..
Or……wall street is doing well so it can’t be that bad…..
Useful idiots. Still waiting for them to complain about gas prices.
I wonder what are the chances (high probability) that prices of some obvious things like gasoline may become subsidized to hide the real cost. Grocery can shrink the product volume and still have same price. Gas is by the gsllon….I think it would be obvious if they started selling gas for $x for 3 quarts.
Zero chances of subsidies….look at the list of items on the high end of SD’s graphs. Those costs lay directly in the path of the Green New Deal and Climate Accords juggernaut being used to reshape US social habits and economy.
This is a Government Party problem in general, not just propping up Biden. Higher interest rates affect debt service. They affect Wall Street. They affect student loans. Everybody is addicted to the heroin of cheap money. The Fed can’t raise rates because the Government Party would be slitting its own throat.
Higher inflation is not altogether bad, not 2-3%. The crushing stagflation of the 70’s was double digits. The response to the 2008 recession was inflation. The economy should have imploded. That the core rate didn’t go up much was a reflection of real prices being propped up so they would be non-negative.
The real issue isn’t whether the Fed will or won’t raise rates. The real issue is that the Fed CANNOT raise rates. We no longer have a Fed charged with maintaining stable prices. The Fed only exists to enrich Wall St and the Government Party.
Like you say, interest rates tied to debt service. I have said for years/couple decades you will never again see a bank CD for anything like the past, 8-10%. There would be quick debt implosion even at probably 2-5% and virtually certain at 6-8%.
Again, killing savers and frugal people and especially the elderly.
This also has the impact of forcing people who are very conservative savers (investors) into much riskier stocks and bonds direction. It adds a measure of greenmail to the economic policies of FED and behavior by DC v/v their puppet masters.
I did not make the switch to stocks and bonds until very late as I was executing a very very low risk CD and money market based plan actually chugging along at a stately 7-10% AVG, until about 2000. In fact the CD’s chugged along at 10-14% through 1990 before they started eroding.
Problem with your comment is that inflation on day to day basic necessities is running higher than 5-10%+ at this time.
The scum at the FED DO NOT use the same metrics as Joe and Suzzie Consumer, when assembling their 2-3% number. Its a lie.
Neither food nor fuel is included in the inflation metric.
The falsity of the inflation metric is part of the reason “experts” were dumbfounded when the booming Trump economy didn’t cause inflation. The inflation metric was altered to benefit Wall Street, not Main Street (where real people live).
I’m not saying President Trump’s economic policies caused inflation, but that we have lost sight of how to measure a healthy economy.
rev up the repo trucks.
Will this increase the price of gold and silver?
Not until the paper gold and silver market collapses.
This will really hit those of us who are 65 and older. I was fortunate enough to have a 401k plan with my previous employers. I was unfortunate in that I didn’t have any training in investing. I put all my eggs in the wrong basket again and again losing a fortune along the way. I actually had a work friend tell me countless times to let him know when I was changing investments so he could get his out of whatever fund I was putting money into. Even when I put it into no risk money markets that pay .10% interest, my nest egg didn’t grow much at all. This will really harm those who didn’t have any savings/retirement options at all.
Paul Volcker is rolling in his grave along with our founding fathers. Funny, how our leaders play their bag pipes while the country is destroyed.
Oh joy.
We get to live through the 1970’s again.
I hated it the first time.
They are actually preventing a full on revolution. Keep the plebeians working and “feeling rich” to prevent them from taking back the country. It is genius… except the music will stop and the blow up will be way worse. Personally I am spending all my extra cash on ammo, food and supplies. I hope I am wrong and do not need it… but now is the time to collect it.
As a side note it is important to also stockpile barterable goods. Stuff that will become scarce and have value. Ammo is a good one.
A bad batch of Psych drugs that the Chinese happily dump into our supply chain when requested by the Dems for mass shooting or general chaos. The deodorant / body sprays are delivering the drugs affecting testosterone
The thing that strikes me from Sundance’s chart is the things that have inflated are subsidized by the government and the things that have lower prices are not subsidized.
China Based Companies Rush To List On U.S. Exchanges At A Blistering Pace
30 Apr 2021
https://www.zerohedge.com/markets/makes-me-worried-china-based-companies-rush-list-us-exchanges-blistering-pace
When you’re a Chinese company and can list on U.S. exchanges – with little to no recourse or consequences for committing fraud and/or total opacity – why wouldn’t you?
Perhaps this is why there has been an influx of Chinese IPOs on U.S. exchanges of late, despite the ongoing tension between the U.S. and China. Even during the Trump administration, it seemed we had learned to be hawkish everywhere except on our capital markets.
Chinese companies continue to pay listing fees, and continue to get listed, CNBC noted this week. “Despite the coronavirus pandemic and tensions between the U.S. and China, half of 36 foreign public listings in the U.S.” during the first three months of this year came from greater China.
Additionally, about 60 more Chinese companies are slated to go public in the U.S. this year.
Chinese startups seem unconcerned with Trump era rules that would force U.S. exchanges to delist companies that don’t comply with three years of U.S. audits. (Could that be because it usually takes far less than 3 years for Chinese firms to siphon money off U.S. exchanges, when that’s their motive?)
Blueshirt managing director Gary Dvorchak, who advises Chinese companies interested in listing in the U.S., said it has been a “tidal wave” of Chinese companies seeking to list since President Biden took office. “Our phone is ringing off the hook. We’re trying to hire more people. We haven’t seen anything like this since the Nasdaq bubble in ’99. Makes me worried,” he said.
Chinese companies listed in American stock markets suck out American dollars. Many of them are literally shell companies that produce nothing and are totally fraudulent. What is worrisome is that CALPERS is largely invested in Chinese stocks and had a Chinese investment manager overseeing the pension investments.
Why is it even called Globalism when it is China First Economics the world over.
One year ago today I filled up my truck with $1.10 gal. gasoline. Today I filled up with $2.79 gal. Thanks you senile puppet and your globalist handlers.
…But God. Don’t forget the God factor. This isn’t going to go the way they want 100%
I’m trusting God. He’s got this.
I TRUST GOD, but I am also God fearing.
With millions of abortions, and rampant government supported debauchery, perhaps America is overdue for chastisement?
Sundance’s article is reinforced by a Zerohedge report on a Bloomberg reporting about Mom and Pop landlords losing out. And guess who is calling them to offer a way out rescue package, the wealthy elite!
https://www.zerohedge.com/personal-finance/mom-and-pop-landlords-dying-vine-un-evictable-tenants-enjoy-pandemic-protections
“The way to crush the middle class is to grind them between the millstones of taxation and inflation.”
Vladimir Lenin
Biden has no intention of creating new jobs. He is destroying as many jobs as possible. He is making sure companies
will not return to the U.S by raising taxes on them and having others go back to outsourcing their manufacturing.
There will be other whammies on the American citizen. Inflation is one. Secondly, Corporate tax hikes will be passed on to the consumer, or the business will offshore if it can. Thirdly, carbon tax will be levied on American businesses, which will also be passed on to the American consumer if the company remains in the US.
There will be a massive flight of US businesses out of the country like you’ve never seen before.
I’m in the middle of a substantial remodel and my framer charged far more than he was quoting a year ago, lumber has risen 270%, ALL building materials are scarce and have risen sharply in price. My project budget has been savaged. I will be struggling to remain here after construction …
Only an idiot would not understand there are not enough billionaires or millionaires in this country to pay for the Joebama spending plan even if you took everything they all had..
I’ve heard the analysis on “opportunity zones” elsewhere . . . believe it to be the correct . . . another paradigm shift
https://twitter.com/ilDonaldoTrumpo/status/1388288710937124870?s=20
Communists hate and destroy the middle class. Everyone must be a peasant with nothing….except the communist church hierarchy.
The pain will be all American’s ,About 1% will rule with no vote and all will be slaves or dead
Not many people remember the Carter Administration that led to massive inflation and major interest rate rises to over 20% interest on mortgage loans in the early 80’s. Paul Volcker had to implement draconian measures to tame inflation. With the trillions they are now printing God help us. Just remeber a trillion seconds is equal to over thirty two thousand YEARs!
The Feds are only ”independent” against Republican administrations. They collude with the Dems. The feds need an audit.
Not much time left now.
Destroying the American middle class is a high priority of the uniparty. Dependence on big government is a high priority of the uniparty. Economic calamity is a perfect no one gets the blame on this fiasco.