Until people understand what is happening, we cannot correct things or even respond to them accurately. Many people don’t want to accept what is happening. Even more still believe in the Schoolhouse Rock civics they were taught in grade school and cannot accept how these ideologues operate. As long as denial remains a survival mechanism, correction is difficult.
All of the people on the monetary policy side of the economic equation are working earnestly to manage the global economy into a decline thereby slowing the need for energy production. The bankers are supporting the Build Back Better policy makers by putting the western economies into an intended contraction. Slowing the western economies helps to lower energy use and moderate/offset the extreme increases in cost (coal, oil, gas, electricity, fuel etc) the policies are creating.
Lower economic activity means less income, job security and wealth for the working class. Simultaneously, increased energy costs mean more expenses for the same workers who are losing income and wealth. This is the ‘managing’ part of their collectively “managed transition.” They are monitoring and managing the pitchforks.
In this Meet the Press segment with Treasury Secretary Janet Yellen, you will note she says “lower economic activity during this transition” is good. She also happily says businesses are taking “appropriate” action to lower their activity, because that is exactly what the central planners want. They want businesses to do less, create less, sell less, even employ less, because ultimately, they want businesses to help advance the cause of climate change by consuming less energy resources. WATCH:
The central bankers are trying to support western government policy. Unfortunately, the government policy they are under obligation to support is the fundamental energy shift, or what the World Economic Forum (Davos Group) has called the “Build Back Better” climate change agenda.
Monetary policy can only impact one side of the inflation challenge, the demand side.
The western bankers (EU central bank, U.S. federal reserve bank, and various banking groups) are raising interest rates in order to “tame inflation” by “taming demand.” However, as you know the global economic demand has been declining for several quarters. Raising interest rates into an already contracting economy only does one thing, it speeds up the rate of economic contraction.
Economic contraction is the lowering of economic activity. Raise interest rates -in a general sense- and businesses invest less, borrowers borrow less, consumers purchase less, employers expand less, and the economy overall slows down. When the economy turns negative, meaning less products and services are produced, we enter a recession. Some businesses and employers do not survive a recession and subsequently unemployment rises.
During recessionary periods people buy less stuff, people have less income stability, and economic activity drops. When the banks raise interest rates into an economy that is already stalled or contracting, unemployment and general pain on Main Street increases. Workers are laid-off, incomes shrink, consumer spending drops and that leads to less employment. Recessions are bad for middle-class and working-class people.
However, that said, there is one benefit from a recession…. Energy use drops.
People travel less; businesses operate shorter work schedules; manufacturing stops; overall fewer goods are produced because less consumer spending is taking place. From the perspective of the groups who want to see overall energy consumption drop, a recession is a good thing.
A recession also brings along a natural drop in energy prices as less overall energy is used inside an economy that is slowing, stalled or contracting.
Oil prices drop as less oil is needed for the manufacturing of goods. Energy use in transportation also drops and generally gasoline prices drop because less transportation fuel is needed, because fewer goods are being transported. When the economy goes into a recession, energy use and prices always drop.
Put these factors together and you start to see how the transition to a new western energy policy, the Build Back Better agenda, benefits from a recession.
This is the essential understanding needed to reconcile why central banks would intentionally create an economic contraction. The bankers are supporting the governmental objective of transitioning the western economy into a new energy system away from oil, coal and natural gas. The banks are supporting the policy makers.
The central banks cannot openly admit what they are doing to support the politicians and policy makers. In this weird new era, the banks are being instructed to support the policy makers without actually admitting they have changed their monetary mission. The central bankers will continue to say their job is to manage and/or balance employment and inflation. However, what they will not admit is their unspoken agenda to support the political decisions.
Instead, almost all the central banks are saying their interest rate hikes are intended to cool inflation by lowering demand. However, it is not demand that is driving inflation; it is the policy making behind the energy transition that is driving higher costs on everything.
The supply-side of the inflation dynamic is being overwhelmed by massive increases in energy costs which are the results of intentional western policy. Extreme increases in consumer prices are the outcome of these energy price increases. The overwhelming majority of consumer price inflation is being caused by energy policy, not demand.
The various central banks and monetary policymakers know this. In fact, they are lying about their motives. They have to lie, because if they were to tell the truth there would be an uprising, and the sucess of the energy agenda would be put at risk.
In order to support the energy objectives of the various governments’, the central banks are trying -and succeeding- to lower economic activity.
Less economic activity means lower energy needs. This is what they call “managing the transition” to the new economy based on “sustainable energy.”
The banks and policy makers are ultimately managing the economic decline in order to Build Back Better in the future. This is why the originating charter of the central banks is being ignored, and the banks are raising interest rates into an already contracting economy.
None of this is being done accidentally. All of this is being done with forethought and implicit intention.
Unfortunately, for the average person this means the banks and policy makers have entered a phase where it is in their interests to shrink the global economy. They are trying to control the collapse of the various economies by working together. This means less jobs, less work, a lower standard of living, and a period of extreme financial pressure for the average person.
Eventually, we will reach a point where the government(s) will need to step in and fill the gap from the declined economic activity. Bailouts and subsidies will be needed as they were in the COVID lockdown test run. Unemployed workers and the people being impacted by a prolonged economic recession will need subsidies in order to survive.
The government policy makers are planning to do just that, spend more. They practiced during the COVID economic lockdowns, now they will execute a similar policy path as they manage the energy transition.
We have only just entered the beginning phase of this Build Back Better agenda. No one, including the banks and policy makers, have any idea how long this is going to take. We could be in this period of severe economic contraction for several years, perhaps decades, until their grand design of a new energy future is complete. This has been the discussion at the World Economic Forum (WEF), as the instructions were passed out.
The entire time the western government architects are doing this, they must keep the demand for traditional energy products like coal, oil and gas at the lowest demand possible. That is why the central banks and politicians must keep economic activity at the lowest -yet survivable- rate possible.
Prepare your informed long-term affairs accordingly.
It would be nice to see her spinning from a windmill. I once read a mystery novel about that.
You may want to get familiar with your local police dept and make sure they get paid. If money stops coming into your city for local services, buy more ammo.
They brought back this fabulist away from her cats and sorting the magazine section in the library to help kill the economy. She is the female version of Chauncey Gardiner. Send her back to her cats.
When a Treasury Secretary talks of environmental issues over economic issues, we are in a world of hurt.
How about the Russia-China digital currency tied to commodities to replace dollar as reserve currency?
What impact would that have on US citizens?
Inquiring minds want to know.
Planned collapse – engineered demolition of Bretton Woods USA dollar supremacy ….. paves way for ” RESET ”
Panic – we need a ‘new plan ‘ ……. bankers just happen to have a CBDC trackable digital currency , all ready to roll out …… for YOUR own good.
John The Savage – Brave New World ….. said NO.
These people are not stupid , they play stupid , and say — ” we never saw it coming ” ….. for one reason :
They are BUYING TIME. They know the system will blow , they know all pressure valves are at REDLINE !!
Strap In.
We have to get Trump back into the WH!
“Windmills, Schmindmills”
Here’s what China’s got to say about green energy plans:
China Approves $458 Million Coal Project amid Power Crisis
MAGA 2024 !
I don’t know what School House Rock civics is.
The book that most helped me understand the left, and what it is going on is one I read in 1964, the title: None Dare Call it Treason.
The environmental thing adds a new aspect to it, but it is still just camouflage.
It is a grab for power. Stooges believe the warming story, but the big shots switched to climate change precisely because nobody who thinks would continue believe in the warming story for very long.
God bless you, Mr. Lee Gibson in 7th Grade Social Science – introducing us to the writings of Ayn Rand, with the book “Anthem”. That was public school!
Look up school house rocks on YouTube.
They were funny little cartoons on Saturday mornings that gave a quick lesson on American civics and I think history back in the late 70s early 80s.
Alot of us in our 40s and 50s remember these.
Still have my copy of that book. Read it in the ’70’s. I knew it was a keeper.
This sucks.
It sucks big time. We feel like guinea pigs being used by the Dems. “This is about future of the liberal world order, and we have to stay firm”. Brian Deese
Any specifics on “preparing your informed long-term affairs accordingly would be greatly appreciated.
In a “democracy” don’t we vote for or against “build back better”…
Yep…
…the people who shout the most concerns of saving “democracy” are all beholden to the globalist elite…DAVOS Man…
Pelosi is a millionaire who lives in a mansion and owns vineyards, and Bernie Sanders own a home in Washington D.C., a home in Vermont and a beach house. Those two pretending to care about the working and middle class is just lip service.
You are spot on SD. So many economic analysts miss this, the intentional actions by the WEF and godless globalist cult.
We have to stand up and tell Klaus Schwab it is he who will end up owning nothing and he won’t be happy at all.
The globalist cult must be purged and culled – They are Satanists and their plans to fight God include destroying the USA.
and yellin back to Brooklyn…. sorry Bro0klyn
Yellin is full of crap.
She is just another pile …
This will put millions in body bags. Thats the quite part said outloud.
That woman is so stupid I wonder how she manages to breathe.
Transitions to windmills?
Plays right into politicans sweet spot with a surplus of hot air.
Another scheme, scam and fiasco is looming just over the horizon.
Transition to windmills? How can we do that when each windmill gearbox requires 800 gallons of that dastardly evil petroleum (which must be changed annually)? And the massive electrical transformer for the windmill requires 1300 gallons of oil?
What utterly imbecilic hypocrisy from the tree-huggers to insist we must convert to wind energy and shun oil production! You can’t have wind energy without oil.
Quite the conundrum! And these imbeciles are in charge of policy in Mush-brain’s administration.
but what about the ARctic Tundra melting and the methane gas pits? they are massive. Is this a hoax too. I have been on the anti-warming train for a long time……. but I think the geoengineers are making certain that America bows to the new world order (and other “western” origin nation i.e. europe, australia and new zealand.
FJB
Where are they going to get all the oil required for each windmill (about 2100 gallons for each gearbox and transformer) if they stop drilling for oil?! Green energy is NOT green. Between the windmill fraud, and the amount of strip mining required for EV batteries (not to mention worker exploitation including child labor), green energy is one of the most destructive developments to the environment and to the human population ever devised. Look who profits versus who suffers and you will have your proof.
I think they want oil, gas, and coal for the elites and windmills, solar and electric for the slaves.
And they don’t think they need many slaves.
Welcome to the New Babylon. BBB stands for Build Back Babylon.
The Yellen dwarf speaks and utterly makes a fool of herself. IS SHE A WOMAN?
They are truly insane. Now, how did we get to this mentality? Blame it on the educational system, especially the universities. They need to be shut down.
Build Back Better and the climate change agenda makes no sense from a productivity/efficiency pov. If equity is the driver than everyone better get comfortable riding in the the ships cargo holds as we will all be slaves
Good for whom? The Biden crime family? The Secretary of the Treasury? Liberal Billionaires like Soros, Bezo and Gates?
It certainly is not good for me!
Wow she is either stoned or stupid ! Then again perhaps she actually believes the nonsense she babbles on about .
We are a couple married 47 years now counting on the gains of a My IRA’s and the Misses 401k . Our statements for January to June 2022 are down over $60 grand .
So under Biden’s economic lunacy you band of idiots lost us $10 grand a month !
Yes I know it’s on paper , how about we cut all government pensions by a similar figure ??
Oh you can’t because they are already bankrupt so that explains where our gains vaporized to !
Buzz of liar , we are in a depression it just has no effect on you and your ilk !
Global Energy Consumption 2021 In Exajoules, In Percentage, And In Barrel Of Oil Equivalent (=BOE)!!!
From “bp Statistical Review of World Energy 2022,” “Primary energy: Consumption by fuel,” in Exajoules, page 9, at https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html :
1) Global Energy Consumption 2021 In Exajoules:
Oil: 184.21 Exajoules
Natural gas: 145.35 Exajoules
Coal: 160.10 Exajoules
Nuclear energy: 25.31 Exajoules
Hydroelectricity: 40.26 Exajoules
Renewables: 39.91 Exajoules
Total: 595.15 Exajoules
(My remark: The total number is 595.14 Exajoules, and not 595.15 Exajoules.)
2) Global Energy Consumption 2021 In Percentage:
Oil: 30.95%
Natural gas: 24.42%
Coal:26.90%
Nuclear energy: 4.25%
Hydroelectricity: 6.76%
Renewables: 6.71%
Total: 99.99%
(My remark: I have used the actual number of 595.14 Exajoules as total for my analyse, and with two decimals for the fuels.)
2.1) 595.14 Exajoules to BOE
595.14 Exajoules=97,276,887,871.854 BOE
~97.3E+9= 97.3 Billion BOE in total energy consumption of 2021
https://www.justintools.com/unit-conversion/energy.php?k1=exajoules&k2=barrel-of-oil-equivalent
2.2) Fossil Fuels Global Energy Consumption 2021 (total): 82.27%
Non-Fossil Fuels Global Energy Consumption 2021 (total): 17.73%
3) https://www.convertunits.com/from/exajoule/to/joule
1 Exajoule= 1.0E+18 Joule
https://www.en.wikipedia.org/wiki/Orders_of_magnitude_(energy)
4) Long Live Fossil Fuels
Defend Science, And The Scientific Method
Defeat Global Warming Hoax, And The Environmentalism Agenda
Defeat Paris Agreement Of 2015
Defeat The Political Correctness/Cultural Marxist Agenda
Defeat Global Governance
defeat geoegineering
My correction:
https://en.wikipedia.org/wiki/Orders_of_magnitude_(energy)
Remaining true to your first sentence, “Until people understand what is happening, we cannot correct things or even respond to them accurately.,” I see an important confusion innocently and commonly propagated in your article that is crucial to correct in your thinking.
Inflation is due ONLY to one thing: The Fed’s expansion of the money supply, thus devaluing the money. This has nothing to do with scarcity (supply-demand), greedy businessmen, oil cartels, or trade unions. I mention these as they were commonly the targets of the government during the Carter years and are eloquently dismissed by Milton Freidman. You seem ignorant of inflation’s cause with,”Monetary policy can only impact one side of the inflation challenge, the demand side.” There is no demand side of inflation.
You’re absolutely correct about the effect of raising interest rates. This only cripples the economy more. And it does nothing to reverse the already spent money to excess by the federal government. What are they going to do, UNSPEND the money? Ridiculous! It’s gone, it’s spent. To unspend is to put a genie back into its bottle.
Again, you speak of the demand side of inflation as in: “Monetary policy can only impact one side of the inflation challenge, the demand side.” There is no demand side of inflation. Rate of exchange and supply-demand are not part of inflation.
Important to your analysis is that the Consumer Price Index (CPI), although it is affected by inflation, is not inflation. And even if it was not comprised of cherry-picked commodities, it could never represent inflation. It is exactly as named. It is an index of pricing. Of course, the government doesn’t know this either.
Equating the CPI with “inflation” is like making a hotdog that includes a wiener, pickled relish, onions, a hotdog bun, some chili, two peppers, and a small dab of mustard, then calling it a “mustard sandwich.”
Sure, the mustard is damn important and it affects the taste of everything else, but it’s a small part of the sum. And in the case of the present CPI—that is greatly affected by the fossil fuel (FF) scarcity and not so much inflation—we have a similar over-representation.
It’s possible that the price increases due to the deliberately created FF shortage are less than the inflation, but I believe that the inflation effect is presently the lesser. As the Biden inflation begins to kick in, its effect on pricing may grow to exceed that of the FF scarcity deliberately caused by the Biden administration. [Note that the FF scarcity is easily reversed, but the inflation is not.]
And note that the Fed’s raising of the interest rates will not affect the larger price increases caused by the FF scarcity other than to raise the FF price. As inflation is due—only—to the expansion of the money supply, changing the interest rates do nothing for inflation. Higher interest rates merely cripple business and economic activity. Raising interest rates will do nothing for inflation. As you state, raising the interest rates slow the economy. And it makes FF prices higher (if FF producers are allowed to borrow) thus raising the CPI. It’s nuts.
I believe that the present inflation is due to excessive spending by Trump (4.1 T) and the worst is yet to come (Biden’s 6T). Prices on the street do not rise for 12-36 months after Congress passes spending excesses. Just ask yourself: If you had a printing press and could print counterfeit Benjamins and spend them in your community how long would it take for everyone to bid up their prices, assuming no one was wise to your scam?